They make their profit # because they cut costs in places they don't believe are critical to the business. They aren't making the profit # by growing the business.
Looks like Cramer got his talking points from his neighbor Dave over the weekend while they were out shoveling. Any time Dave needs help to pump up HON prior to earnings, he can always count on his buddy Jim.
Not a whole lot in that article to make you feel optimistic about 2016. I do think that HON will continue the strategy that was used at GE when Cote was there and keep doing acquisitions and squeezing cost out of them to help the bottom line.
The business units are definitely preparing for a lean 2016 and trying to reduce costs wherever they can. Almost all businesses decided to cancel their January kickoff meetings (except Cote's leadership meeting). They can save money and destroy moral all in one fell swoop!!
Probably needed to be done before Cotes leadership meeting to help pay for meals and entertainment. Hopefully the numbers will be small, but that doesn't really matter to the employees that are affected (and their families).
I don't believe that Dave will bring in an outsider to replace him. Based on the success that he has had and the board that he has put together, I think that Dave will be able to put the succession plan in place that he wants and they will rubber stamp it.
I believe that we will see moves in the next 18 months to position the business for a smooth succession plan. I also believe that the reason that Fradin and Kramvis were moved into "vice-chairmen" roles was to give their replacements (Alex & Darius) experience in running one of the 4 business units. I think part of the transition will be that Dave will step down as CEO but keep his COB the role. Mandatory retirement for directors is 72, and that can be waived by the board (as it was for Gordon Bethune).
There was a clause in the company by-laws that stipulated a mandatory retirement age of 65 for officers of the company. Unless Dave has changed that, Honeywell will have a new President/CEO by the end of 2017.
I believe that the mandatory retirement age (unless Dave changes it) is 65, so we will know over the next 18 months who he will pick as his replacement. I believe that he will either choose the president of ACS (Alex) or the president of the performance materials (Darius) if he chooses somebody from the current management team. I think 2016 is a very important year for both of them and their businesses.
Have you checked with HR or called the benefits line? I don't think that you can get full pension at 60, but I do think that you should at 65. At least it would give you 2 years of your life back :-)
He was mentored by Cote when he first joined the company, so he was groomed well for the culture that they want at Honeywell. When Cote has to step down due to mandatory retirement age, I think his successor will either be the CEO of PMT or ACS.