Honeywell International, Inc. (HON) - NYSE
  • Tue, Mar. 8, 2:55 PM
    • Honeywell (HON +0.1%) is a better buy for investors than General Electric (GE -0.5%), Deutsche Bank analysts say, as its fundamentals have continued to line up more favorably over the past few weeks with "an abundance of favorable HON attributes that should allow HON to outperform GE."
    • Deutsche Bank raises its target price on Buy-rated HON to $120 from $105, and considers HON's reaffirmed guidance too conservative, saying an extra two points of realized top line growth at 30% incremental profit contribution could drive ~$0.25 higher EPS than its current $7.05 forecast, or more if the company also pursued faster share repurchase.
    • In contrast, the firm sees little upside from the GE consensus forecast over the next two years, particularly considering the rollover GE has experienced for its equipment orders over the past two quarters.
    | Tue, Mar. 8, 2:55 PM | 36 Comments
  • Thu, Mar. 3, 2:00 AM
    • After dropping a merger bid for United Technologies (NYSE:UTX) earlier this week, Honeywell (NYSE:HON) CEO David Cote said his firm will walk away on friendly terms, without going hostile.
    • "I was pretty clear from the beginning with investors that I'm not going to do that," he proclaimed during an interview with Jim Cramer. "We've got plenty of other opportunities."
    • Cote also noted that, had the deal been successful, he would have considered serving as CEO of the combined company.
    | Thu, Mar. 3, 2:00 AM
  • Wed, Mar. 2, 7:32 AM
    • FQ1: EPS of $1.48-$1.53; Full year: EPS of $6.45-6.70; Sales of $39.9B-40.9B; Segment Margin of 18.9%-19.3%; Operating Income Margin of 18.0%-18.4%; Free Cash Flow of $4.6B-$4.8B.
    | Wed, Mar. 2, 7:32 AM
  • Tue, Mar. 1, 11:23 AM
    • "This is the appropriate outcome given the strong regulatory obstacles, negative customer reaction and the potential for a protracted review process that would have destroyed shareholder value," the company said in a statement.
    • "UTC will remain laser focused on our key priorities - program execution, innovation, cost reduction and disciplined capital allocation. Our outlook remains strong and our industry-leading franchises are well positioned to deliver strong earnings growth and create shareholder value well into the future."
    • Previously: Honeywell drops bid for UTX (Mar. 01 2016)
    | Tue, Mar. 1, 11:23 AM | 12 Comments
  • Tue, Mar. 1, 9:13 AM
    • Though strongly disagreeing with United Technologies' (NYSE:UTX) concerns about regulatory and consumer risks to the deal, Honeywell (NYSE:HON) - recognizing the target's unwillingness to engage - is dropping its merger ambitions.
    • Source: Press Release
    • HON +2.5%, UTX -4.3% premarket
    | Tue, Mar. 1, 9:13 AM | 12 Comments
  • Tue, Mar. 1, 8:09 AM
    • Honeywell (NYSE:HON) has acquired RSI Video Technologies, a provider of intrusion detection systems for commercial and residential security applications, for approximately $123M.
    • The acquisition will enhance Honeywell's ability to meet the increasing global customer need for video verification, and brings a unique do-it-yourself offering combined with professional monitoring.
    | Tue, Mar. 1, 8:09 AM | 1 Comment
  • Mon, Feb. 29, 10:47 AM
    • Wells Fargo's Sam Pearlstein contends that United Technologies (UTX -0.9%) has six options when considering Honeywell's (HON) bid for the industrial company:
    • 1) It can just say no to a merger; 2) Hold out for a higher price; 3) Effect a different transaction such as a swap of businesses; 4) Find another merger partner; 5) Look to create value near-term through a leveraged recap or split of the company; 6) Do something rash and make a sizeable acquisition of companies that would prevent a Honeywell merger.
    • Given that United Technologies management is focused on driving shareholder value, Pearlstein doesn't expect a move such as the latter and the likelihood of another spin-off/split of the company also seems unlikely. As a result, most of the items would not be value adding strategies.
    | Mon, Feb. 29, 10:47 AM | 1 Comment
  • Fri, Feb. 26, 3:12 PM
    • According to a regulatory filing, Honeywell (HON -0.7%) CEO David Cote sold about 345K shares worth roughly $36M in company stock on Feb. 16 - three days prior to his company approaching United Technologies (UTX -0.9%) with a buyout offer.
    • The filing doesn't indicate whether the sale was part of a pre-arranged plan.
    • Honeywell's stock price sunk about 7% following the leak of its offer a few days later.
    • Cote has been a fairly active seller of company stock over the past year, unloading nearly 900K shares.
    • Previously: Honeywell says it offered to buy United Technologies for $108/share (Feb. 26)
    | Fri, Feb. 26, 3:12 PM | 19 Comments
  • Fri, Feb. 26, 2:11 PM
    • United Technologies (UTX -1.2%) issues a letter and presentation responding to Honeywell's (HON -0.1%) earlier presentation, saying HON's takeover proposal "grossly undervalues" the company.
    • Even if a deal materializes, UTX says regulatory delays "would ultimately destroy shareholder value."
    • HON said earlier that it had offered to buy UTX for $108/share, valuing the company at ~$90.7B.
    • UTX resumes trading after a brief halt, turning lower.
    | Fri, Feb. 26, 2:11 PM | 64 Comments
  • Fri, Feb. 26, 9:49 AM
    • Honeywell (HON -0.2%) releases details of its rebuffed offer for United Technologies (UTX +0.7%), saying it was seeking to re-engage on a possible transaction.
    • HON said in a presentation to UTX Chairman Edward Kangas and CEO Gregory Hayes that its proposed offer of $108/share would lead to cost savings of $3.5B in four years.
    • Hayes said earlier this week that antitrust hurdles and customer resistance would make a merger too difficult to fulfill.
    | Fri, Feb. 26, 9:49 AM | 17 Comments
  • Wed, Feb. 24, 12:40 PM
    | Wed, Feb. 24, 12:40 PM | 2 Comments
  • Tue, Feb. 23, 3:59 PM
    • A new statement from Honeywell (HON -0.9%) takes an opposite stance from would-be merger partner United Technologies (UTX -0.9%), suggesting it doesn't see regulatory issues as any obstacle to what would be a giant deal.
    • "The value creation from a combination is significant, including the benefits of $3.5 billion in annualized cost synergies," Honeywell says in a statement. "We do not see the regulatory process as a material obstacle to a transaction."
    • Shares jumped for both companies yesterday on news that the two had talked about merging into what would be an aerospace giant, though United Tech dampened speculation with statements saying it thought a merger wouldn't pass antitrust muster.
    • "A combined Honeywell and United Technologies would maintain a strong investment grade rating, and have higher free cash flow and a rapid deleveraging profile," Honeywell says. "We would not and will not pursue a transaction that is not in the best interest of our shareowners, consistent with our successful and disciplined capital deployment framework."
    • Previously: United Tech CEO discusses Honeywell merger talks (Feb. 23 2016)
    • Previously: Honeywell closes lower on report that UTX rebuffed merger as unlikely (Feb. 22 2016)
    • Previously: CNBC: Honeywell, United Technologies discussed megamerger (Feb. 22 2016)
    | Tue, Feb. 23, 3:59 PM | 21 Comments
  • Tue, Feb. 23, 10:26 AM
    • "This isn't just something we came up with ourselves [regulatory approval issues] we actually went out to blue chip law firms, who pined on it...it is apparent that it's very hard to do the deal."
    • "What they have bottom line said is that it would be irresponsible for us to pursue the merger, because of the potential destruction in value, the distraction of what we're trying to do on a long term basis."
    • "We're just in the process of reinvigorating UTC...and the thought of trying to distract everybody with a merger just doesn't make sense."
    • See the interview here
    • Previously: Honeywell closes lower on report that UTX rebuffed merger as unlikely (Feb. 22 2016)
    • Now read: Clash Of The Titans: Honeywell & United Technologies
    | Tue, Feb. 23, 10:26 AM | 7 Comments
  • Mon, Feb. 22, 5:35 PM
    • After reports of megamerger discussions goosed the stocks of Honeywell (HON -1.9%) and United Technologies (UTX +4.8%) earlier today, Honeywell dropped to close in the red on further reports that UTX didn't think the deal would get an antitrust OK.
    • Each conglomerate is worth more than $70B and makes a wide variety of goods, but they have a heavy overlap in aerospace.
    • Regulators would likely be as concerned with the deal as supply customers Boeing and Airbus. "There is no chance the government will give them a pass,” said University of Michigan professor Erik Gordon.
    • Honeywell had floated a merger with United Tech in 2000 under different leadership before GE jumped in with a $40B deal to buy Honeywell -- which was blocked by European regulators in 2001.
    • Updated 7:40 p.m.: UTX confirms it never explored options due to "significant regulatory obstacles, customer concerns and valuation issues"; In particular, UTX said "combining two of the world's largest players in the aerospace and commercial building segments would face insurmountable regulatory obstacles and strong customer opposition, and could either be blocked outright or conditioned on significant divestitures after a lengthy and disruptive review period that would destroy shareholder value."
    • Previously: CNBC: Honeywell, United Technologies discussed megamerger (Feb. 22 2016)
    | Mon, Feb. 22, 5:35 PM | 17 Comments
  • Mon, Feb. 22, 1:22 PM
    • Honeywell (HON +2%) and United Technologies (NYSE:UTX) have had talks about a merger to create an aerospace megacorp that would represent $94B in sales, CNBC is reporting.
    • UTX has jumped 4.4% on the news.
    • Talks are early stage, but reportedly occurred within the past two weeks and involved Honeywell offering a premium in a mostly-stock deal.
    • Any combination would face strict antitrust scrutiny, and likely heavy opposition from plane customers like Boeing and Airbus.
    | Mon, Feb. 22, 1:22 PM | 22 Comments
  • Wed, Feb. 17, 9:27 AM
    • Sales of $39.9B-$40.9B (up 3-6%, 1-2% core organic)
    • EPS of $6.45-$6.70, (up 6-10%)
    • Segment margin 18.9%-19.3% (up 10-50 bps, 80-110 bps ex-M&A)
    • Link to presentation
    | Wed, Feb. 17, 9:27 AM
Company Description
Honeywell International, Inc. is a diversified technology and manufacturing company, which manufactures aerospace products, control technologies, power generation systems, specialty chemicals, fibers, plastics and electronic materials. The company provides a variety of services to its customers... More
Industry: Aerospace/Defense Products & Services
Country: United States