Reuters - Video

Edition: US | UK | IN | CN | JP

video MOST POPULAR

Honeywell spinning off two units

Tuesday, October 10, 2017 - 01:23

The diversified manufacturer is keeping the bulk of its aerospace business and spinning off its home and transportations units. Fred Katayama reports.

▲ Hide Transcript

▶ View Transcript

Big makeover at Honeywell. The diversified manufacturer is spinning off two units - its home and global distribution business ..and its transportation business. That'll create two publicly-traded companies by the end of 2018. Those two units generate annual revenue of nearly $8 billion. Brian Langenberg of Lagenberg & Company: SOUNDBITE: BRIAN LANGENBERG, ANALYST, LANGENGBERG & COMPANY, (ENGLISH) SAYING: "It's incremental. I don't have reservations. It's one of those things you can do. You didn't have to do it. On the home spin, it does make sense in that on the margin that business has not been growing at a 3, 4, 5 percent rate." Honeywell is retaining its aerospace technology business. That move defies the campaign by activist investor Dan Loeb of Third Point Capital to spinoff that division that makes up more than a third of revenue. William Blair analyst Nick Heymann said, "This gives the parent flexibility to engage in M&A. That's where the focus is. They want to become a software-driven company." By divesting its transportation business, Honeywell sheds technology tied to the internal combustion engine at a time when regulators look favorably on electric vehicles. Its other unit provides services that range from home heating to security and fire protection products. Honeywell shares fell moments after the market open Tuesday.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Close

Honeywell spinning off two units

Tuesday, October 10, 2017 - 01:23

Featured Videos

Is it a bird? Massa races falcon in Formula E car

Is it a bird? Massa races falcon in Formula E car

Felipe Massa, driving his new Formula E car, races the world's fastest bird, a peregrine falcon
One man's 15-month daily protest against Brexit

One man's 15-month daily protest against Brexit

For the last 15 months, Steve Bray has made it his mission to stand outside parliament each day its members are in session, protesting Britain's exit from the European Union
Monkeys terrorize India’s centre of power

Monkeys terrorize India’s centre of power

Monkeys by the thousands are lording over India's ministry buildings in the capital New Delhi, snatching food, breaking power lines and even tearing up stolen government documents.
Adrenaline-filled Crashed Ice makes Japan debut

Adrenaline-filled Crashed Ice makes Japan debut

Cameron Naasz and Amanda Trunzo win the inaugural Crashed Ice races in Japan
China puts a kung-fu twist on bullfighting

China puts a kung-fu twist on bullfighting

Several times a week, Chinese bullfighter Ren Ruzhi puts himself in a ring to spar with an opponent around five times his weight and capable of killing him