Honeywell buys a worse company then they are. Old horrible technology with dilapidated solutions.
8 replies (most recent on top)
Reviving this old thread... if you go to the CAES website (yes it is still there) is says "CAES by Honeywell." I suspect this business unit will be pulled into the new Aerospace/Defense group more tightly and be assimilated.
Post ID: @3arq+1t7hmhC5:
CAES revenue is $680k/employee.
Honeywell’s is about $380k/employee.
Honeywell will milk it until there is nothing left and sell off the property and get rid of the people.
U guys nailed it.
Hon can not get its stock to go any further. YTD return is (- 5%), yes negative.
You cannot grow new technology or open new customer in six months.
Thus Acquire a company, talk big about opening new markets, then take out the butcher kn--e, and start slicing the acquired company into pieces, for sell off, cost reduction, off shoring, layoff, etc.
Guest what the wall streets id--ts with MBA ( Mediocre but arrogant) will perceiver growth, and meeting QTRly targets. Thus the stock goes up!
A short term CEO, really cannot grow a company, M&A, cost reduction, off shoring are his/her only tools.
All will move offshore in the end. Bleak times for the tex trade workers these days, who in years past thought they were "above the crowd."
CAES had a lot of layoffs and attrition in the two years leading up to this sale and didn't backfill many of the positions lost through voluntary terminations. I can't imagine Honeywell has much to inherit in the sale. CAES has one big contract in Southern California that can be moved closer to its customer who is located on the east coast.
The motivation behind this acquisition is likely maintaining access to European and British defense spending. The mega trend is toward domestic supply chains for critical defense items. Reference the new Honeywell location in Poland.
CAES revenue is $680k/employee.
Honeywell’s is about $380k/employee.
Not a benefit for USA employees. Most of the work well probably go to India or China.
Honeywell will milk it until there is nothing left and sell off the property and get rid of the people.