Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  Honeywell International Inc.    HON

HONEYWELL INTERNATIONAL INC.

(HON)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsAnalyst Recommendations

Honeywell International : Spinoff Sues Former Parent Over Asbestos Liabilities

share with twitter share with LinkedIn share with facebook
share via e-mail
0
12/02/2019 | 02:08pm EST

By Thomas Gryta

Garrett Motion Inc. is suing its former parent, Honeywell International Inc., alleging that it was forced into a burdensome agreement related to asbestos liabilities.

Garrett is Honeywell's former transportation-systems division, making turbochargers and compressors for cars and trucks, and became a separate public company in October 2018.

The complaint, filed Monday in New York state court, alleges that Honeywell unilaterally imposed an "oppressive and unconscionable" 30-year indemnification agreement before the spinoff.

Garrett, which is based in Switzerland, said it failed to reach a negotiated agreement with Honeywell's leadership over the matter and now is trying to nullify the agreement in court.

"Honeywell's spinoff of Garrett into a standalone company fully complied with applicable law," Honeywell said in a statement, calling the claims without merit. Honeywell spun off 100% of Garrett when the two separated and has no controlling interest or seats on its board.

Honeywell continues to face lawsuits related to use of asbestos in its North American Refractories Co., which it sold in 1986, and from Bendix, an automotive brake division Honeywell sold in 2014. A recent filing shows Honeywell has $2.4 billion in asbestos liabilities with $6.4 billion in unresolved claims against it.

Honeywell said the asbestos liabilities covered by the agreement with Garrett originated in the former transportation business that is now Garrett. It contends the agreement is enforceable and "was structured and sized to enable Garrett to generate sufficient cash flow" to make the payments and operate as a stand-alone company.

Garrett said it was forced into the agreement and is required to cover punitive damages awarded against Honeywell, even though it doesn't have control over the legal proceedings. The payments have an annual limit under the agreement.

Garrett had revenue of $2.4 billion in the first nine months of 2019, compared with $27.2 billion at Honeywell. A recent regulatory filing shows Honeywell received $114 million in payments from Garrett in the first nine months of 2019.

Honeywell, which is based in Charlotte, N.C., has made hundreds of millions of dollars' of asbestos-liability payments in recent years. Before spinning off Garrett and another company, Honeywell said it expected to receive up to $315 million a year from the spun-off companies to help cover future expenses.

Write to Thomas Gryta at thomas.gryta@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
GARRETT MOTION INC. -13.44% 10.05 Delayed Quote.-18.56%
HONEYWELL INTERNATIONAL INC. -0.55% 174.49 Delayed Quote.32.07%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on HONEYWELL INTERNATIONAL IN
02:48aIndustrial Stocks Pause, Await Trade Developments -- WSJ
DJ
12/09Industrial Stocks Could Rebound on Trade News, Analysts Say
DJ
12/09HONEYWELL INTERNATIONAL : Jaime Chico Pardo Announces Retirement From Honeywell ..
AQ
12/06HONEYWELL INTERNATIONAL INC : Change in Directors or Principal Officers, Financi..
AQ
12/06HONEYWELL INTERNATIONAL : Jaime Chico Pardo Announces Retirement From Honeywell ..
PR
12/06HONEYWELL INTERNATIONAL : Responds to Garrett Motion's Meritless Lawsuit
AQ
12/03HONEYWELL INTERNATIONAL : Sued Over Asbestos By Spinoff
DJ
12/02NEWS HIGHLIGHTS : Top Company News of the Day
DJ
12/02NEWS HIGHLIGHTS : Top Company News of the Day
DJ
12/02NEWS HIGHLIGHTS : Top Company News of the Day
DJ
More news
Financials (USD)
Sales 2019 36 791 M
EBIT 2019 7 704 M
Net income 2019 6 028 M
Debt 2019 6 140 M
Yield 2019 1,92%
P/E ratio 2019 21,1x
P/E ratio 2020 19,8x
EV / Sales2019 3,56x
EV / Sales2020 3,41x
Capitalization 125 B
Chart HONEYWELL INTERNATIONAL INC.
Duration : Period :
Honeywell International Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends HONEYWELL INTERNATIONAL IN
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 24
Average target price 185,91  $
Last Close Price 174,49  $
Spread / Highest target 16,3%
Spread / Average Target 6,54%
Spread / Lowest Target -6,58%
EPS Revisions
Managers
NameTitle
Darius Adamczyk Chairman & Chief Executive Officer
Gregory P. Lewis Chief Financial Officer & Senior Vice President
Krishna Mikkilineni SVP-Engineering Operation & Information Technology
Jaime Chico Pardo Lead Independent Director
Clive Richard Hollick Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
HONEYWELL INTERNATIONAL INC.32.07%124 679
SIEMENS AG19.14%104 793
3M COMPANY-10.87%98 604
GENERAL ELECTRIC COMPANY45.18%96 942
ILLINOIS TOOL WORKS INC.37.68%55 986
HITACHI, LTD.51.93%37 500