Honeywell weighs jettisoning aerospace division, following the breakup of other US conglomerates

Honeywell said that it may calve its aerospace division from the conglomerate, sending shares up more than 2% before the opening bell Monday.

The announcement arrives about one month after Elliott property Management revealed a stake of more than $5 billion in the aerospace, automation and materials business.

In a note sent to Honeywell’s board, Elliott said that the business needed to simplify its structure as it deals with uneven execution, inconsistent budgetary results and an underperforming distribute worth.

Elliott wants the the Charlotte, North Carolina, business to divide its automation and aerospace businesses.

The board of Honeywell International Inc. has been exploring strategic options for the business since earlier this year. It has said there will be an update in late January when it releases its fourth-quarter profits results.

A number of American conglomerates, like General Electric and Dow Chemical, have already broken up their companies to become more nimble. Shares of Honeywell have trailed the S&P 500 index by a wide spread this year.

The business, which makes everything from eye answer to barcode readers, is already shifting. Since last December, Honeywell announced plans to spin off its advanced materials business, entered an agreement to sell its personal protective equipment business, as its made several acquisitions.

“Honeywell is now well-positioned for significant transformational alternatives, and we are continuing our deeper, more granular discovery of their feasibility and feasible timing,” Chairman and CEO Vimal Kapur said in a statement. “Honeywell’s board of directors remains committed to maximizing shareholder worth creation, and any selection will be evaluated against that objective.”