Honeywell Splits Automation and Controls Business
Honeywell has split its Automation and Control Solutions business. The company will realign its Automation and Control Solutions business into Home and Building Technologies (HBT) and Safety and Productivity Solutions (SPS).
According to Honeywell, in 2015 estimated revenues of the 2 segments would have been $US9.4 billion for HBT and $4.7 billion for SPS. In 2016, Honeywell earnings per share are up to $1.66 over 2015 when they were $1.51 and sales are $10 billion, up from $9.8 billion time in 2015.
“ACS is coming off a strong quarter and has established momentum in key software-driven markets where our products and services give us a competitive advantage, especially given our recent acquisitions such as Elster (ELTTY), Xtralis, Intelligrated and Movilizer,” Cote says.
“We have removed layers from our organizational structure and are well-positioned to implement a more focused segment reporting alignment that fits our HOS Gold approach to drive breakthrough strategies and speed up new product introduction. This new structure will also help us better serve our customers. Our success through acquisition and NPI has resulted in a much broader portfolio that has outgrown the existing ACS construct.
“Having 2 more nimble segments will promote greater customer intimacy and responsiveness. The separation into 2 businesses will also enable increased efficiency and speed of decision-making as well as a more comprehensive integrated suite of technologies for the respective end markets.
“Honeywell grew earnings 10 per cent in the second quarter, capping off a strong first half of 2016,” said Honeywell chairman and CEO, Dave Cote. “ACS had strong growth in Security and Fire, Buildings Solutions and Distribution, and its China business.” ♦