Honeywell (HON) Stock Rises, Spinning off Nylon Chemicals Business
NEW YORK (TheStreet) -- Honeywell (HON) - Get Report stock is climbing by 0.47% to $114.65 in early-morning trading on Thursday, as the defense company plans to spin off its $1.3 billion resins and chemicals business by early 2017, creating a standalone, publicly traded company named AdvanSix.
AdvanSix will be a leading manufacturer of polymer resin used to engineer plastics, fibers, filaments and films.
The spinoff is expected to be tax-free to Honeywell shareholders and there is no impact to financial guidance.
Honeywell's resins and chemicals business "is favorably positioned to continue to achieve global growth as a standalone enterprise," CEO Dave Cote said in the statement. "Following the spinoff, Honeywell and AdvanSix will each have a more focused business and be better positioned to invest more in growth opportunities and execute strategic plans best suited to its respective business."
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of A+.
Honeywell's strengths such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and expanding profit margin outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: HON
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
