(Reuters) – Honeywell said on Tuesday it is realigning its business to focus on three broad business trends in its efforts to boost sales growth and reallocate capital, while strong demand may lead to a better-than-expected profit in the current quarter.
The company, which named insider Vimal Kapur as its new CEO in March, said it would focus on three “compelling megatrends” – automation, the future of aviation and energy transition.
The updated reporting structure will have four lines of business that reflect the new focus – Aerospace Technologies, Industrial Automation, Building Automation, and Energy and Sustainability Solutions.
The development comes as industrial automation firms benefit from an ongoing labor shortage in the US, while a resurgence in aircraft demand has boosted profit at aerospace suppliers like Honeywell.
The company said on Tuesday it expects third-quarter profit to be within or above its previous estimate of $2.15 to $2.25 per share.
The reorganization is expected take effect from the first quarter of 2024.
“This simplified structure will enable Honeywell to realize synergies that will accelerate our innovation playbook,” Kapur said.
(Reporting by Pratyush Thakur in Bengaluru; Editing by Pooja Desai)