Jet engines and Muck Boots seem worlds apart, but they coexist at Honeywell International. More than a century old, the company is a diverse industrial conglomerate, its four segments making and selling products from aircraft engines, flight safety, and landing systems to smart controls for commercial buildings to personal safety products such as gas masks and footwear. In late 2018, Honeywell completed the spin-off of its vehicle turbo charger operations and home heating and security businesses to create two new publicly-listed companies—Garrett Motion Inc. (turbo charger technology) and Resideo for home comfort and security products (formerly its Homes and ADI Distribution business). The company does business worldwide, although the US generates more than half its sales.
Honeywell is organized across four segments: Aerospace; Performance Materials and Technologies; Building Technologies; and Safety and Productivity Solutions.
The Aerospace segment accounts for more than 35% of the company’s revenue. It provides products and services for aircraft and vehicles sold to OEMs and other customers in a variety of end markets—air transport; regional, business and general aviation aircraft; airlines and aircraft operators; defense and space contractors; and automotive and truck manufacturers.
Performance Materials and Technologies (more than 25% of revenue) operates in three divisions. Honeywell UOP provides process technology for fuel production for the petroleum refining, gas processing, and petrochemical industries; Process Solutions sells automation controls and software for the oil and gas, pulp and paper, industrial power, and several other industries; and Advanced Materials manufactures high-performance products such as fluorocarbons, specialty films, waxes, additives, and advanced fibers to name a few.
The company's former Home and Building Technologies segment—now just Building Technologies—(almost 25%) sells building automation controls for commercial customers.
The Safety and Productivity Solutions segment (15%) offers products that improve productivity, workplace safety, and asset performance. Safety products include personal protection equipment and footwear. Productivity solutions include gas detection technology, mobile devices and software for computing and data collection, supply chain and warehouse automation equipment, and sensors, switches, and controls.
The company’s principal executive offices are located in Morris Plains, NJ. Honeywell has approximately 1,300 locations, of which some 300 are manufacturing sites. The US accounts for more than 55% of total revenue.
Sales and Marketing
Honeywell's Aerospace business sells its products and services to original equipment manufacturers (OEMs) and other end markets like regional, business and general aviation aircraft; airlines and aircraft operators; defense and space contractors; and automotive and truck manufacturers. The Building Technologies segment sells to commercial building owners. Performance Materials and Technologies targets several industries including oil and gas, pulp and paper, industrial power generation, petrochemicals, life sciences, and mining. The Safety and Productivity Solutions business sells its products globally to a variety of industries.
Honeywell's revenues increased 3% from $39.3 billion in 2016 to $40.5 billion in 2017. This growth was led by a 22% increase in its Safety and Productivity Solutions business.
Honeywell's net income plummeted to $1.7 billion in 2017, a $3.2 billion decrease from 2016. The decrease is attributed to the impact of additional tax expense from the Tax Cuts and Jobs Act. The company is working to better align its operating structure to benefit from the new tax system.
Cash at the end of fiscal 2017 was $7.0 billion, a decrease of $784 million from the prior year. Cash from operations contributed $6.0 billion to the coffers, while investing activities used $3.6 billion, which included a net $2 billion increase in investments (mostly in marketable securities). Financing activities used another $3.5 billion for loan payments, dividends to stockholders, and the company's stock repurchase program.
For all its segments, Honeywell is focused on several initiatives to spur growth, including R&D activities to develop new technologies. The company aims to become an industrial software company offering products for the connected plane, home, building, and factory. Other initiatives that target lower costs are process improvements in its manufacturing and administrative operations and cost control efforts for asbestos and environmental remediation and pension and retirement benefits.
Honeywell's strategy for growth includes both acquisitions and the divestiture of under-performing units. In order to streamline its operations, Honeywell in late 2018 completed the spin-off of its turbo charger unit and home heating and security businesses to create two new publicly traded companies. The new business featuring its turbo charger technology (formerly the Transportation Systems business) is now Garrett Motion, Inc. Its former Homes and ADI Global Distribution business is now Resideo, a company providing home comfort and security systems. After the spin-offs, Honeywell believes its remaining portfolio will consist of high-growth businesses each aligned to the global megatrends of energy efficiency, infrastructure investment, urbanization, and safety.
Mergers and Acquisitions
In 2018, Honeywell acquired the warehouse automation business, Transnorm, for approximately €425 million from IK Investment Partners. The acquisition enhances Honeywell's presence in the growing e-commerce market in Europe, as Transnorm does more than half its business there. With Transnorm, Honeywell hopes to build on the success of its 2016 acquisition of Intelligrated, a maker of material handling equipment, including conveyors, sorters, and airport baggage handling equipment, as well as order fulfillment and warehouse control software.
Mid-2017 saw the company complete the purchase of Nextnine, a provider of security management solutions and technologies for industrial cybersecurity. The addition of Nextnine’s security solutions and secure remote service capabilities is meant to shore up Honeywells’s existing range of cybersecurity technologies and increase its Connected Plant cybersecurity customer base.
534 FELLOWSHIP RD
Mount Laurel, NJ 08054-3405
Phone: 1 (856) 228-8100
Employer Type: Privately Owned
Vice President gen Cnsl: Bruce L Harrison
Employees (This Location): 150
Employees (All Locations): 1,400
Mount Laurel, NJ
West Deptford, NJ