Honeywell to realign business segments to boost growth By Reuters

Honeywell to realign business segments to boost growth By Reuters

© Reuters. FILE PHOTO: A logo of Honeywell is pictured on their booth during the European Business Aviation Convention & Exhibition (EBACE) in Geneva, Switzerland, May 22, 2017. REUTERS/Denis Balibouse/File Photo

(Reuters) – Honeywell International (NASDAQ:) is restructuring its business operations to three segments down from four to boost sales growth and reallocate capital, the industrial conglomerate said on Tuesday.

The development comes as aviation suppliers are seeing a faster-than-expected rebound in air travel.

The Charlotte, North Carolina-based company’s shares were up 1.43%, at $189.17 before the bell.

Its new segments will be automation, the future of aviation and energy transition.

“This simplified structure will enable Honeywell to realize synergies that will accelerate our innovation playbook,” Chief Executive Officer Vimal Kapur said.

Honeywell said its results for the third quarter would be in line with previously issued guidance ranges on its aviation business performance. It said earnings per share were expected to be within or above its previous estimates.

In July, the company provided an adjusted earnings outlook for the third quarter between $2.15 and $2.25 per share.

Honeywell said its new segmentation would take effect from the first quarter of 2024.

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