Honeywell has announced its plans to realign its business portfolio by early 2024 with three industry trends: automation, the future of aviation and energy transition.
According to the company, this shift will enable it to deliver accelerated organic sales growth and inorganic capital deployment, creating greater value for shareholders.
“We are committed to delivering differentiated, profitable growth,” said Honeywell Chief Executive Officer Vimal Kapur.
“After a complete review of our portfolio, we plan to organize our businesses around three powerful megatrends, each of which is underpinned by our robust digitalization capabilities and solutions.
“This simplified structure will enable Honeywell to realize synergies that will accelerate our innovation playbook, leverage our financial strength and unlock greater value through our Accelerator operating system.
“As we enter the next phase of transformation, this realignment will enable us to consistently deliver our upgraded financial algorithm, drive innovation that will help solve the world’s toughest sustainability and digitalization challenges and deploy capital more effectively.”
The company says that the updated reporting structure will include four segments, underpinned by the company’s Accelerator operating system and Honeywell Connected Enterprise integrated software platform:
Effective 1 January 2024, Honeywell says that Lucian Boldea will serve as President and CEO of the Industrial Automation segment and Ken West will serve as President and CEO of the Energy and Sustainability Solutions segment.
Both Boldea and West will report to Kapur and serve as company officers.
Billal Hammoud will remain 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 remain President and CEO of Honeywell Connected Enterprise.
“Our strategic business group leaders are well-positioned to lead Honeywell in both organic and inorganic growth,” Kapur noted.
“They have demonstrated a deep understanding of our customers and end markets and are capable of delivering strong results across our industries.
“Their combined experience and drive to create value for customers and shareowners position Honeywell well for the future.”