All while Dave Cote likely tells investors how strong the outlook is for "increased revenues". Since HON is already at the bottom of the supplier surveys of all the major aircraft companies, it appears there will be no investment into improving products or "service".
If you are already laying off the first week of January after having multiple layoff cycles through the last year, then investors should beware of the stream of corporate B.S. coming from Morristown.
Honeywell is following in the footsteps of GE. In the stock bubble mania of 1999-200, GE was #1 market cap stock and Jack Welch was CEO of the decade. Lots of RIFs and outsourcing back then, much smaller company today. Stock was at 70. Went down from there to about 20 in 2003, bounced back up and when market crashed in 08, GE hit a low around 7. Today, 16 years later GE is back to 31-32. So in 16 years stock is still less than 1/2 what was. I see similar path for HON. Current leaders have just about s---ed all they can out of the company. Another one to look at is IBM - turned themselves into a call center and a company that does nothing more than stock buybacks. Sounds like a Ponzi scheme to me.
I interviewed at Orbital recently. They told me in the interview that the rumors they are hearing say Honeywell aero won't be around in another 2 years.
Honeyhell is going under. Nothing can stop that now. The die has been cast.
Hey, let's leave the Aztecs out of this.
Wall St loves layoffs. Bunch of vultures. What they don't love is reduced sales and profits. Keeping profit up at the expense of employees and their families is a proud American management tradition.
Where else in the world do CEO's make 250 times the average employee? Cote probably makes more than that -- much more.
I normally keep my HON stock holdings at or below 5% of my portfolio -- requires constant rebalancing since the match is HON stock. Enron taught us to keep it low, but what I'm seeing means I need to keep it even lower, say 1%. If the market learns what's going on and doesn't care for it, the stock could go in the crapper in a New York minute. . .or not. Better safe than sorry.
Strong US dollar is killing growth prospects: non-dollar (overseas) revenue comes back lower and US based exports are relatively more expensive to foreign customers. Latter is especially bad for non-aerospace. Given track record, my guess is that any overseas money $ brought back will go for stock buybacks (more financial magic) and not US investments. Wall Street, and especially a national stock picking show host, laps up the fact that HON continues to deliver IMPROVED quarter over quarter, or year over year, profit margins despite not having increased revenue. The desperation is beginning to be obvious as Morristown runs out of smoke and mirrors.
@-khn from the OP: Thanks; I expect the most value the company now has is real estate and intellectual property/patents. They can both be sold off as blood sacrifices to the altar of the Wall St. pyramid like the Aztecs. Until, of course, even that supply of virgins is exhausted.
You'd think that if DC and his minions really cared about the long-term viability of the company, they'd bring some of that cash stashed in foreign tax shelter bank accounts back to 'merica and invest in the future of the company like investing in future products, and increasing confidence in the customer base by hiring instead of firing. But, then again, that only works if they care. Obviously they don't. It's all about "THEM" and what they can stuff their pockets with before they move to private islands with walls around them.
Agree with the OP. Tempe building was just sold. DC and Timmy phoney baloney Mahoney know there is no organic sales and no organic growth. In order to meet investor expectations and promises, more heads will roll, more benefits will be eliminated and HON is now in the real estate business. It's officially open season on the US employee base.
@-fpw, I am the OP. I understand that it really isn't just HON Aero with issues. The whole dang tree is rotten to the core of the trunk. There is no logic to it, right? Unless the whole plan is to get rid of the whole company. Other than FMT I don't know of any product division or site of HON who claims to be staffed at any level to get anything done (anyone who knows different please speak up). Not without more blood of the worker bees, anyway. All with no reward other than NOT working there, eventually, one way or another. It's no secret in the industries they are in; many workers in them are ex-Honeywell and would like to bury Honeywell in its own excrement.
I suspect (my conspiracy theory) is that DC & the board were depending on Hillary winning the Pres. election and getting the TPP through. They were positioning to off-shore everything including the HQ. Because, why not? Within the "free trade zone" they can be based at any tax haven anywhere. So now they've been caught with pants down so the only option left is to draw & quarter the company & sell it all off in pieces before DC leaves (like a dingle-berry he'll be hanging on the hair for awhile). Of course any potential buyer knows to beware. It's nothing but an empty husk.
I got a call from a customer today telling me that his technician was in the field and needed to call tech support yesterday. My customer is a security company and since many of the people in fire and security (HBT) are on furlough this week (except sales), my customer's technician was on hold for almost 45 minutes!! As he so eloquently put it "Honeywell's efforts to cut costs and improve their bottom line is killing my business. Honeywell used to be a great partner, but you are now making it too difficult for me to do business with." Unfortunately this isn't the only customer that feels this way. 2017 is going to be a long year with no sales growth again!!
Yea 2017 might be the end of HON AERO. Last year I predicted 2 years max before the train completely falls off the tracks. This whole company is nothing but a giant joke.