Honeywell (NASDAQ:HON) announced today plans to restructure its business segments to align with three significant megatrends: automation, the future of aviation, and energy transition.
This strategic shift aims to drive accelerated organic sales growth and capital deployment, ultimately delivering greater value to shareholders. The new segmentation will come into effect in the first quarter of 2024.
Honeywell shares rose 0.6% on the announcement.
Under the updated reporting structure, Honeywell will have four segments, all supported by its Accelerator operating system and Honeywell Connected Enterprise integrated software platform. The aim is to position Honeywell to better serve its customers and perform well in various market conditions.
Starting January 1, 2024, Lucian Boldea will assume the role of President and CEO of the Industrial Automation segment, while Ken West will serve as President and CEO of the Energy and Sustainability Solutions segment. Both Boldea and West will report to Honeywell CEO Vimal Kapur and hold company officer positions.
Billal Hammoud will continue as President and CEO of the renamed Building Automation segment, and Jim Currier will remain President and CEO of the renamed Aerospace Technologies segment. Kevin Dehoff will retain his role as President and CEO of Honeywell Connected Enterprise.
Furthermore, the company also said it anticipates reporting strong results, in line with previously issued guidance for sales and segment margin. The company's Aerospace and Performance Materials and Technologies business groups are expected to contribute significantly to these results.
EPS figures are also expected to meet or exceed the previously provided guidance range, with full-year results falling within the previously issued guidance ranges.
Honeywell is scheduled to announce its quarterly earnings on Thursday, October 26, at 08:30 ET (12:30 GMT).