Honeywell advertises three -way split, stock falls

• Honeywell International, the stored conglomerate, which launched a strategic review early last year, announced plans on Thursday to divide into three independent companies.

• The conglomerate said it is planning to separate its aviation department from its automation business and would continue with plans to spin its advanced material arm.

• The plan from Honeywell, which has been subjected to pressure from activist investor Elliott Investment Management to divide, follows industrial conglomerate General Electric’s three -way breakup last year.

Honeywell International (Hon) Said Thursday that it will divide into three independent companies and become the latest stored conglomerate to plan a breakdown.

Shares in Honeywell, which have undergone a strategic review of its operations, were unstable in the trade in Premarket, which turned past gains to fall more than 2%.

The conglomerate said it is planning to separate its aerospace department from its automation business and would continue With plans to spin its advanced material arm. The goal, the company said, is to create three time -free public companies that, among other things, will have a “simplified strategic focus” as well as increased financial flexibility. Break out of the automation and aerospace companies will end in the second half of 2026.

“The formation of three independent, industry-leading companies is based on the powerful foundation we have created, places each to pursue tailor-made growth strategies and unlock a significant value for shareholders and customers,” CEO (CEO) Vimal Kapur said, adding that companies had a “rich pipeline of strategic bolt-on acquisition targets.”

The message follows the completion last year at General Electric’s Three-way collapse as well as pressure From Activist Investor Elliott Investment Management for Honeywell to Split. Elliott -Partner Marc Steinberg and CEO Jesse Cohn supported the split plan on Thursday and said in the Honeywell press release that the company’s collapse would offer “valuation upside down.”

Honeywell reported mixed results for the fourth quarter. Its turnover in the fourth quarter of $ 10.1 billion, an increase of 7% years over years and adjusted Earnings per Stock (EPS) At $ 2.47 topped visible alpha stimates. EPS of $ 1.96 Underbreaking forecasts. Honeywell said it expects 2025 to adjust EPS of between $ 10.10 and $ 10.50, an increase of 2% and 6%.

The Wall Street Journal Previously reported the collapse plan. Its report said that GE’s space, energy and health units, which now act separately, have a market value almost four times in 2022 before the collapse. Honeywell shares have increased by 15% in the past year through Thursday.

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