Honeywell realigns Transportation Systems with Aerospace
Honeywell realigns Transportation Systems with Aerospace
Honeywell today announced the realignment of its Transportation Systems business segment with its Aerospace business segment to better take advantage of the engineering and technology similarities and the shared business models between these two business segments.
Under the realigned segment reporting structure, the company will have three business segments: Aerospace, Automation and Control Solutions, and Performance Materials and Technologies.
“Honeywell is a global technology leader and our turbo business is one of our innovation crown jewels,” said Honeywell chairman and CEO Dave Cote.
“To leverage shared strengths and synergies, we will merge Transportation Systems which include our turbo technologies business, with Aerospace. We expect the transition to be seamless with both businesses benefitting from expanded sharing of the technical expertise that enables them to offer differentiated products to customers in their respective markets,” he said.
This realignment has no impact on the company’s historical consolidated financial position, results of operations, or cash flows.
Effective with the reporting of third quarter 2014 results, the company will report its financial performance based on the inclusion of Transportation Systems in Aerospace.
To provide historical information on a basis consistent with its new reporting structure, the company will make available during the third quarter of 2014 certain historical segment results recast to conform to the new reporting structure.
The re-casted financial information will not represent a restatement of previously issued financial statements.
The company also announced the completion of the sale of its Friction Materials business to Federal-Mogul in a cash transaction valued at approximately $155 million.
The transaction does not include the Bendix® name or line of products or business in the United States.
In addition, joint ventures that operate in Australia, Thailand, and Malaysia will be retained as will Honeywell’s ownership of the non-operating sites in Condé, France and Guangzhou, China.
“The sale of the Friction Materials business is a significant step in our effort to fully align the Honeywell portfolio around great positions in good industries,” added Cote.
Honeywell is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; turbochargers; and performance materials.
The company has offices in both Hanoi and Ho Chi Minh City and has been providing the Vietnam market with technologies from all four businesses.
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