Thread regarding Honeywell International Inc. layoffs

Might be the only call that Cramer have ever got right haha!!!

Break up : No Rocket Science here.

1. Talented and Most R&D funds are gone. Thus, no new product, means no growth
2. Competitors have pretty much passed Hon.
3. what is left is cost reduction, off shoring to India/China, but these two countries cannot innovate, they are mostly production or turn the crank kind of labor.
4. thus sell pieces.

Remember Vipul is sitting on stock option that is based on recent market price. he has 3 to 4 years of vesting. So he is in it for short term.

Besides, his loyalty lies to India.

Pack you bags Brothers!

Honestly, most of Honeywell's engine and APU technology is not considered too high tech to sell off to even Chineese companies. Turbine Temps, compression ratios, etc, are just too low. No low observable tech. No modern ultra high temp coatings.

So, as long as control work is kept in the US or Canada, engines and APU could easy be sold overseas. And that may not be bad. The right owner may be willing to dump a ton of RnD investment. Otherwise, an US owner with similar technology, like Caterpillar, would be a better fit for engines.

Not poor contracts. It should read pull contracts. I really have to prove read my post better. Basically, as artificial, intelligent improves. My voice typing will have less grammar and spelling errors.

We haven’t got to that point yet. When artificial intelligence reaches its golden age. The Artificial intelligence will be able to proofread whatever you post and correct spelling, errors, grammar errors, and greet a sentence properly.

This will take about 10 years.

I’m pretty sure they’re going to prune even aerospace. Why do I see this? Because they’re gonna dump any aerospace division that affects the bottom line.

Even though I can’t see the future. I expect GE to merge with some of our divisions. They’ll give Honeywell a cr-p load of money. Which will allow stock value to go up and company and will award our shareholders another stock dividend.

If I had a crystal ball, the aerospace divisions. Which are in the process of losing work to Honeywell competitors. Because our customers are fed up with us, so they are slowly giving our contracts to other Honeywell competitors. This is the reason why I believe my division is so slow.

When you have customers come in. They threaten a poor contracts because we can’t deliver our parts on time. They also not believing our excuses anymore. So they come in and start counting parts, and trying to figure out why the parts aren’t being delivered. In my opinion, this is not a good omen.

No, they’re not gonna pull all the work from us at once. They will slowly offload our workload. By awarding contracts to new Honeywell competitors. They will tell the employees that’s due to pandemic. They also tell our customers the same thing.

Yet! Our real customers have talked to our suppliers. In order to find out why they can’t deliver their parts to Honeywell on time. Guess what? The number one reason was. Honeywell‘s wonderful solution of paying their bills. Pay their suppliers every six months.

Our suppliers have people to answer to. They have to pay their suppliers too. When it comes to raw material. Well, I got some bad news for you. These people are have to pay their suppliers too. These people are not the Bank of America.

They’re not just going to keep giving your parts and being in the hole financially. Which Honeywell thinks is the way a businesses run. Reality check. When you reach a certain financial threshold. No more raw material delivered to our suppliers.

Keep up the good work. SS Honeywell. When we see an iceberg. We are notified to increase speed. So we can hit directly head on, which is called ramming speed.

@3kme+1oBDR11N So very true. Honeywell will not survive in it's current state beyond a decade, I think it will be dissected with the next 5 years. China has a strong case for buying out a large portion and becoming independent (there is a significant and well run outfit there that serves its domestic market very well), perhaps license the Honeywell name although personally I would start with fresh branding. The Honeywell name is severely tarnished. It is fascinating to monitor the descent.

Any "value" Honeywell had left after Dave Cote was gone with the great resignation. P.T. Barnum once said "there's a su---r born every minute". Some arrogant fools in the corporate meat grinder will buy the pieces of Honeywell that still seem to have value. When they see the real books for what they have purchased, they'll know that the "value" they thought they payed for had already slip through their fingers like the desert sands. Lawsuits and whatnot will go on for a few years. But, the Honeywell lawyers and execs are so good at screwing everyone over that they'll have covered their posteriors via the fine print. The arrongant fools will then cut their losses while the Honeywell lawyers and execs that swindled them will walk away with billions. It's how Honeywell operates.

My feeling is that Inteligrated is done too. Honeywell just does not know how to run that business. All this talk of automation lends more towards the sensing arm of the business. I thought they would dump Aero but the way he was speaking is that it will remain as a core group in the reorg, could be all lies though. I would not put it past them, just hot air to entertain investors.

@1yfb+1oBDR11N
Now you've got me wondering what will be the strategic focus of the new group? Given Honeywell's performance with custom project solutions and seemingly adverse reaction to such, I bet Intelligrated is done.

It seems that Honeywell likes widgets that can be designed once and then sold forever. I've heard as much during the many Town halls that I've monitored. Intelligrated is doomed. Convince me otherwise please.

@1ehq+1oBDR11N SPS will be broken up. A couple of existing businesses will be placed in the new group structure penned for next year.

Unfortunately one of the "mega trends" highlighted is Automation. So Intelligrated may not be part of the strategic pruning, which I'm sure most of whats left of us were hoping it would be.

Notice on the slide show that at the bottom of page 5, the quote "Reshape portfolio through strategic pruning". To me, strategic implies an enterprise or sky view of a situation. The pruning will be visible from the very top of Honeywell meaning SBG's. What's getting pruned? SPS? AERO? PMT? HCE?
Your guess is as good as mine.

Not just salespeople, R&D too. He says he recognizes we need a new portfolio but I do not think he has any idea how long that will take, a decade minimum and that would be with an efficient company not the clown show of modern Honeywell.

We tried getting rid of salespeople. Predictable results.
New ceo seems feckless.

This proves once again HW does not care about their customers or employees. All they want is to kiss the left and right cheeks of Wall Street, collect their bonus and move on.

Wow, he more than eluded to next years re-structure.
I thought we were to keep that an absolute secret but he has more or less gone public.

Moving to digital platforms and having our customers self-serve is huge. This is reducing field personnel, dispatch personnel, field supervisors/managers, finance, etc. They can try to spin it anyway they want, and maybe this is the future for most organizations, but the personnel reduction will most certainly be an outcome of this change. This is another way they are trying to "bring out value".

Yes, if they plan on selling. Offshore, reducing costs, increasing profits. Business is not good for some businesses so it is a perfect time to sell.

Listen to the CEO's remarks at the conference:
https://event.webcasts.com/viewer/event.jsp?ei=1631665&tp_key=28df979680

Intelligrated would have higher margin in 2024, amazon is not very profitable, moving people to Mexico?