From my observation, the modus operandi here is to buy up companies, cut operations to the bone, invest as little as possible, distribute profits to management and shareholders, downsize and RIF in order to keep profits flowing, repeat until nothing is left. Thoughts?
14 replies (most recent on top)
@2nrx+ Yep So much of SPS marketing is being done in Bucharest and looking to move more.
You missed the most important of this scheme ... offshoring. The domestic workforce of the purchased company is moved overseas aggressively. This is what allows short-term earnings growth with flat or declining revenue. The executive management and shareholders are profiting by the destruction on the American middle class.
And, your point is? Isn’t applicable to every other company listed in Wall Street. Its just called business and what you just described is to generate profits. The higher the profits, the higher the dividends which gives every male investor a hard-on and a woman investor a n-p perk.
Nailed it!!
DC and DA are cut from the same cloth. They just hose you in different ways.
You have described the true HOS algorithm.
BINGO! But don't think the current clowns running the milk wagon came up with this HUN model, it was GE Jack. They only try and copy....
Welcome to leadership. Please pick a covered parking space and signup for your turn with the public speaking coach.. you have a town hall to run next week. Oh .. here is your bottle of wine completes of the guy down the hall.. enjoy it .. cost $700 (inflation you know)
I own Honeywell Stock because it was once part of my compensation, you bet I am dumping the lot before 2023 ;)
I own HON stock. Please, keep doing what you’re doing.
I work in ISC in SPS. I have not been on a successful NPI project in a long long time…. Belfast, Slim, NG Xenon, VSU, NGB, Autocube, Package Car, Treasure Island. All BUSTS because HON doesn’t have any talent left. Why bother anymore?
To be fair on DC he recognised the futility of this and did try to invest in innovation.......well that was a swift end to his tenure.
Then came the vampirical and board pleasing DA. You could immediately witness the remaining complexion of the business being sucked dry.
I was in product development across SPS and can tell you categorically that this was their agenda. Anything 'new' was typically a reskin or a low hanging fruit update such as an updated display or a new UI (which by today's standards were always cr-p, I don't even want to discuss how expensive and terrible HUE was). Customer's always knew the score and could smell a legacy product in disguise a mile off. The milking of legacy brands is coming to an end though and the lack of investment in R&D is now coming to show. I can guess what their next move will be and ain't gonna be pretty folks, C-Suite have already filled their boots.
Spot on. The Honeywell financial engineering business model
Concur based on last decade. Thoughts? (seems like a worthless POS legacy HON leader that was part of the problem)
Honeywell Annual Revenue
(Millions of US $)
2021 $34,392
2020 $32,637
2019 $36,709
2018 $41,802
2017 $40,534
2016 $39,302
2015 $38,581
2014 $40,306
2013 $39,055
2012 $37,665