© Reuters. FILE PHOTO: A Honeywell logo on its stand during the European Business Aviation Convention and Exhibition (EBACE) in Geneva, Switzerland, May 22, 2017. REUTERS/Denis Balibouse/File Photo
(Reuters) – Honeywell (NASDAQ ) said on Tuesday it is realigning its business to focus on three big business trends in its efforts to drive sales growth and reallocate capital, while strong demand may lead to a better-than-expected profit. expected in the current quarter.
The company, which named expert Vimal Kapur as its new CEO in March, said it would focus on three “compelling megatrends”: automation, the future of aviation and the energy transition.
The updated reporting structure will have four lines of business that reflect the new focus: aerospace technologies, industrial automation, building automation, and energy and sustainability solutions.
The development comes as industrial automation companies benefit from the ongoing labor shortage in the United States, while a resurgence in demand for aircraft has boosted profits at aerospace suppliers such as Honeywell.
The company said Tuesday that it expects third-quarter earnings to be at or above its previous estimate of $2.15 to $2.25 per share.
The reorganization is expected to take effect from the first quarter of 2024.
“This simplified structure will allow Honeywell to achieve synergies that will accelerate our innovation playbook,” Kapur said.