You heard it here first folks
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@tje+ You are correct. This does not seem the sort of post that TD would make. TD would supply more succinct information. Especially if it was 3 year old information.
Goodwill!
Lockheed paid UTC based only on the value of the CH-53K program. UTC was very glad to unload Sikorsky. For the rest of Sikorsky, Lockheed valued at zero. Only now, the Marine Corps is going to reduce aviation purchases to focus on long range precision strike with ground based missiles, and instead of 200 53K, they will purchase substantially less. With the ending of wars in Iraq and Afghanistan, helicopter sales, and helicopter engine sales, will be depressed. Sikorsky sold for 8 billion? Allison sold for $350 million? Laying off people prior to a sale is standard procedure.
Safran is a logical purchaser. When Rolls-Royce purchased Allison for around $350 million, the business model was to not fund any new engines at Allison, only 100% government funded engines would be allowed. RR has taken out $400-500 million per year cash out of Allison, largely based on T56 spare parts sales. This was before the government wised up and went to power by the hour for new engines. RR rapes the government on spare parts sales of older engines. Allison was used as a cash cow to fund UK engines. Now Allison only has thirty year old engines to sell, and production is winding down. A sale of Aero to RR would not be promising. Safran would be better for having a future.
@ 1oeb investment firms
They are not concerned about stock price.
They will look at the profits expected over 10 years and offer 50% of that in a lump sum. After 10 years they will have doubled their money.
When GM wanted to shed Allison engines, they sold it to an investment firm that strpped it down before flipping it to Rolls Royce.
Oh, BTW, one such firm (The Carlyle Group) just bought Standard Aero who was once part of Honeywell, and they currently do nearly all of Honeywell's overhauls.
Alternatively, Safran's Silvercrest engine program failure was, according to their CEO, due to not retaining talent and not training the young engineers they hired. They basically forgot how to design an engine. There may be a good case for Safran to buy engines for a talent injection.
@ 1oeb it’s not unheard of. Lockheed purchased Sikorsky from UTC when it wasn’t profitable. UTC was glad to get rid a bad short term performer. Probably so they had more cash on hard to buy Rockwell Collins.
Who in their right mind will buy this sinking ship? And why buy something that for the foreseeable future will not be profitable? We are still in a pandemic people!
Went from crown jewel SBU of the year and great Q1 to sell off pretty quick!
Maybe Amazon or Walmart will purchase Aero 🤪
https://www.wsj.com/articles/third-point-calls-for-honeywell-to-spin-off-aerospace-unit-1493331154
By David Benoit and Thomas Gryta
Updated April 27, 2017 7:48 pm ET
Really old news!
I had no idea Third Point was trolling this site. Say hi to Dan. https://www.wsj.com/articles/third-point-calls-for-honeywell-to-spin-off-aerospace-unit-1493331154
Anyone can claim to be TD, so not buying another rumor unless there is substance to the claim. Too many miserable people post here trying to stir up trouble or drag others down.
This is what happens:
WHEN Upper tier is laced with $STOCK Options$, they can't wait to cash out.
Most VP come and go in three years. Hint?
Tired D has been correct 99.9%. Why would they sell low? 2 year recovery? Pure speculation. Cut your losses and invest in your connected bs. This makes more sense with the short term way of thinking. Either a sell or spin off will be happening in the near future.
APU’s will be fine middle term. airlines just not running them right now. Boeing has it’s hands full with other problems (ahem, 737max and middle of market aircraft).
This is a perpetual rumor TD. Why sell low now when the aerospace sector is hugely depressed and with all expectations that it will recover within 2 years. Honeywell has cash reserves so no liquidity crisis. I could definitely see Aero selling off pieces that will never recover though.
Not turbochargers, I meant apus.
Isn't Boeing switching to French made turbochargers? Why then would anyone buy Aero? Has Aero had any future since Ron Rich retired/replaced?
Let me just see if I've a spare tenner in my pocket
Does God exist? You heard it here.
@Tired Director - Can you say how eminent a sale is? Is Hon currently in talks with another entity(s)? Are negotiations progressing? Is there a strong buyer inquiring? Is the for sale sign officially up but no interest? I would guess Aero has always been for sale, as long as someone comes a long with the right amount of money. In the same sense my house is always for sale. It is very obvious in the corporate office they want cash now and nothing else. They do not have long term plans for the divisions except to extract cash. BTW, I attended an Aero ISC town hall meting yesterday and IMHO it was pathetic. I never heard so many cliches and buzzwords and at the same time a complete lack of any direction except to keep working really hard and making it happen or else. We just had a big RIF and are down a lot of folks and really has been no Leadership direction regarding how we will change to get the work done. To the point that I don't think leadership cares really. (Just cash and maybe a sale)
Too little to late for many. Good luck. We are pulling for you.
Absolutely, by the direction of things this only makes sense