Honeywell International Inc.(NYSE:HON) announced on Tuesday plans to spin off its Homes product portfolio and its ADI global distribution business, as well as its Transportation Systems business into two separate publicly-traded companies.
It is targeting to complete hiving off the operations by the end of 2018.
READ: Jefferies repeats 'buy' on Honeywell as it plans spin-off
In a statement, the company said the new Homes and Global Distribution business is expected to have an annual revenue of US$4.5bn, with 13,000 employees. It will be a leader in the home heating, ventilation and airconditioning controls and security markets, as well as a global distributor of security and fire protection products.
The new Transportation Systems business is expected to rake in revenues of US$3bn with 6,500 employees, being a market leader in turbocharger technologies with "best-in-class engineering capabilities for a broad range of engine types across global automobile, truck and other vehicle markets.
"The remaining Honeywell portfolio will consist of high-growth businesses in six attractive industrial end markets, each aligned to global mega trends including energy efficiency, infrastructure investment, urbanization and safety," said Darius Adamczyk, the company’s chief executive.
Company ups low-end of full-year guidance
Separately, the company said it is raising its 2017 earnings-per-share outlook to US$7.05 to US$7.10 from US$7.00 to US$7.10.
For the third quarter, EPS is expected to come in at US$1.75, above market consensus of US$1.73, while revenue is seen at US$10.1bn, up 3%, and again above Wall Street’s expectations of US$9.90bn.