Name: Honeywell CEO Talks Boeing, Relocation, Future of the Company
Uploaded: 2019-05-22
Duration: 5 min 19 s
Description: Darius Adamczyk shares his opinion on Boeing's recent troubles, as well his plans to transform Honeywell into a 'software industrial'.

[ MUSIC ] You talk a lot about Honeywell becoming a software industrial. Tell us what you mean by that. << just a ="" greater ="" portion ="" of ="" our ="" business ="" coming ="" from ="" the ="" software ="" segment .="" one ="" things ="" that ="" honeywell ="" does ="" today ="" and ="" that's ="" common ="" across ="" all ="" businesses ="" is ="" we ="" control ="" things .="" whether ="" it's ="" aircraft <="" div =""></ just > Whether it's buildings, whether it's industrial facilities, so we already collect a lot of data, analysis the data, and know to take that and use it in a different matter, and not just controlling things but adding incremental value. It's a natural next step for Honeywell, that's what I mean by combining some of our physical products with those software solutions. So, Honeywell has been around for more than 100 100 years and you say we are not an industrial company. We are a technology company. That sounds a lot like what General Electric's former CEO tried to do, but failed. So what do you say to the skeptics. Who might have doubts about what you're planning to do at Honeywell. Adam Czyk >> Everything we do has a technology orientation, we don't do a lot of metal bashing and things of that nature. We're no low tech industries, commodity industries, everything we do is relatively high- tech and it's just high- tech industrial. Is there anything that you learned from that whole GE story about what they tried to do and how they failed And so that you won't repeat those mistakes at Honeywell. Well, GE has had some tremendous successes as well as some opportunities to learn from. I happen to come from GE. I worked in GE in the early 90s and so I'm an GE alumn and they've had some good success and areas for improvement. I think For us we're very thoughtful about the bets that we make. How big those bets are? We tend to be, we tend to invest in things that can pay for themselves. We're not into the: Okay, we're going to invest a bunch of money and hopefully it turns out into something. And I'm not saying that GE did. But our view is that things generally have to create a business case relatively quickly. For them to, for us to continue to invest in them. You've said that you want to rebuild Honeywell through acquisitions. What types of companies are you looking for ?>>. Well, certainly it's both thoughts. I mean, our objective is to bolt onto the platform. That we're currently in. So whether it's aerospace, whether it's warehouse automation, whether it's catalysts, whether it's building controls. So we're not necessarily looking to expand. I believe in having a much more simple, streamlined company that's one that's complex, and we love that platforms that we're in already. So Our objective is to add on to those platforms, not necessarily create something new and different. Where are you looking to make a major signature deal that will also be a growth engine? Could it be a technology company? Well first of all I'm not necessarily looking to make a big signature deal at all. Most of our focuses are on bolt- ons. Why is that? They're lower risk. Honeywell doesn't need to take big swings, big risks right now. We're performing, we're doing what we say we're gonna do in terms of delivery for value to our shareholders and our customers. And we believe the right strategy is to continue to bolt on to the platforms that we already have and build what we have. [ UNKNOWN ]. I would like to talk to you a little bit about Boeing, given that it's one of Honeywell's biggest customers. What is the company telling you about the timetable when it's gonna get those 737 Max planes flying again? Well, we know the same things that all of you know. The latest press seems that it'll be in mid summer. That's kinda the same thing we know. We're certainly hopeful that it does occur. We are a supplier to Boeing, a big supplier, they're a very, very important customer for us. And we're here to assist them in any way we can to get, That aircraft line again. What if it takes much longer? I mean the planes have been out of service since march they were grounded after those two big crashes, what financial impact could there be on Honeywell if there are more setbacks and longer delays? Well, as I mentioned at the current reduction in production rate reductions have had a relatively modest impact on Honeywell. So should those be more dramatic? I think the short term impact would still be relatively modest. But I'm more worried about the long term viability of the aircraft. Is it an important platform to us, we certainly, we do think it's a good aircraft that has some challenges that need to be addressed, but long term we believe that this is a sound aircraft that we'll be flying again. But you do sound confident and calm about it. You don't seem worried about it. Why is that? Because I know that a lot of my customers like the airplane. They want to see it flying again. They recognized there are some challenges with it now. It's a good aircraft. And once those challenges are addressed, to me I think we need to [ UKNOWN ] on the aircraft in general. And I'm optimistic that those issues will be resolved. [ BLANK_AUDIO ]

Honeywell CEO Talks Boeing, Relocation, Future of the Company

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Darius Adamczyk shares his opinion on Boeing's recent troubles, as well his plans to transform Honeywell into a "software industrial".