If we are pivoting into a software/tech company as all have stated, then why would they keep PMT and UOP? Requires a lot of capital to keep and maintain. It would make sense they would sell these off to move in the direction they have indicated they are going?
Thoughts?
Need more insight here
Baby Ben has failed his way up. Perfect example of the Peter Principle.
Honeywell has been "pivoting" to become a software company for years, since at least 2017. How's that worked out, especially when they laid off a majority of U.S. software developers?
Who is baby Ben, you mean the short dude? Didn’t he get demoted?
I checked the job board and to no surprise, HW has 491 open Engineering positions in India, as compared to 10 open poitions in the USA.
PMT and FP leadership appear to be conducting India style gentrification of legacy US workforce.
@2uvt+16dZitgc correct. I've personally had to fill out a job req for indian help immediately after one of the rifs to replace the onshore labor.
They're not selling UOP..... HON use the crisis as an excuse to fire americans and hire in Delhi.... they do this every five years
And no one is stupid enough to pay top dollar for something Darius is selling... plus i think it would have to be sold to an american company. Can you divide up this company? Like spin off the manufacturing and equipment products, keep the connected plant and design engineering and IP?
or maybe sell it to google and let it's AI automate all the engineering and connected plant stuff.
UOP will likely be sold. There have been roughly 500 RIF'd through June and July. The list includes techinicans, all levels of support and engineering. The sites have been told that the next phase of RIF's will be in late August and early Sept. At these levels of RIF's it will be impossible to support any turn around in the economy. They say the expect it to pick up? Yet continue slashing with no sustainable plan to meet expected demand. Slashing to reduce cost for a sale is the plan.
Closure is more likely.
Rajeev will retire by December, Ben baby will be the CEO and PMT rebrand as STS. Whether sale of business or not, not really matter as long as we have cheerleaders in charge
In a sale, Honeywell would continue even deeper layoffs and cost cutting than currently planned, up until point of sale to drive up value and extract as much profit as possible from PMT, UOP AM and FP. All of which are very expensive businesses to operate as currently structured. A new buyer would immediately replace all the current management with their own management teams and continue to lay-off or replace legacy Honeywell employees with their existing employees to create greater synergy and eliminate duplication across all product lines. If spun off as a stand alone, the debt burden would drive even deeper cuts and layoffs to service the debt and leave a zombie company to service the debt. Either way not a good situation for the surviving legacy Honeywell employees.
I've always wondered when they would sell the PMT business, especially after the spin of Advan 6. I can envision keeping the non-ISC portion of HPS and UOP as that does fit into the "industrial software" arena. However, the AM and UOP manufacturing side I think are probably high on the list to be sold or spun. The timing for executing now is probably not so good as I think you could only sell at a very cheap price now. May be better to hold, wait for the recovery (hopefully) and then cash out. All the layoffs and permanently "rightsizing" the business will make it more profitable (post recovery) and able to obtain higher dollar. For the short term, it is easy to drive down costs and increase profit. This generally won't work over the long term, but that would be for the new owner to deal with.