Honeywell

[Guest]

Manufacturing conglomerate Honeywell (-0.20%) announced a significant restructuring plan after a good, hard look in the mirror (and a lengthy portfolio review).

Since we even struggle making our bed every day, we have to ask: how do you restructure a $109 billion company with 17 business units that makes everything from Alaskan fishing boots to jet propulsion engines? 

If you’re new CEO Darius Adamczyk, here’s one way: 

• First, spin off your HVAC/fire protection and transportation businesses into two separate companies (together, $7.5 billion in annual revenue).
• Then, double down on your aerospace business that accounts for 36% of your total revenue. Nevermind the advice of activist investor Third Point, which pushed for a spin-off (the unit’s sales sagged 3.2% last year).

Honeywell’s shares are up 32.7% YoY, so it might be best to keep that rubber boot on the gas pedal.