Key Takeaways

Honeywell International ( HON ) shares advanced Monday as the conglomerate issued an update on its portfolio review begun earlier this year, noting that it is considering spinning off its aerospace unit.

Chief Executive Officer (CEO) Vimal Kapur said that since the company realigned its operations in January, "we have been moving swiftly and decisively to optimize the Honeywell portfolio to deliver superior growth and drive incremental shareholder value." Kapur added that Honeywell has also been "evaluating more transformational changes."

Kapur explained that after "portfolio enhancements" that were initiated earlier this year, "Honeywell is now well-positioned for significant transformational alternatives, and we are continuing our deeper, more granular exploration of their feasibility and possible timing."

The company noted that a further update on the actions will be given in its fourth-quarter earnings release.

Elliott 'Welcomes' Honeywell Announcement

Activist investo r Elliott Investment Management reacted to the statement, writing that it welcomed the announcement of the ongoing review of strategic alternatives by Honeywell, "including the separation of its Aerospace business." Last month, Elliott revealed it had taken a more than $5 billion stake in Honeywell and called for a breakup of the company.

Shares of Honeywell, which rose nearly 3% Monday morning, hit an all-time high following the Elliott news last month. They've gained about 12% year-to-date.

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