Honeywell (NYSE: HON) reported a corporate makeover on Tuesday that ties its growth more strongly to aerospace technology.
The results of the manufacturer's portfolio review announced before the opening of U.S. markets said it would spin off its home and ADI global distribution business and transportation systems into two independent, publicly-traded companies by the end of 2018.
The company said the two businesses together generated annualized revenue of $7.5 billion.
In the statement, it also raised the low-end of its full-year 2017 earnings guidance by five cents to $7.05 - $7.10, excluding any pension mark-to-market adjustment.
Honeywell Chief Executive Officer Darius Adamczyk, like his peers at other major companies, has been pressured to pull apart a portfolio of disparate businesses that includes automotive turbo chargers, burglar alarms, and the Xtratuf boots popular in Alaska's fishing industry.
By retaining its aerospace businesses, Honeywell defies Third Point's calls to spin off a division which accounted for about 36% of total revenue in 2016.
The Morris Plains, New Jersey-based company also says its new homes and global distribution business would provide services in home heating, ventilation and air conditioning controls and security markets, and would be a distributor of security and fire protection products.
Honeywell shares acquired 30 cents to $143.90
