PARIS—Honeywell Aerospace may see a further increase in its share of defense turnover because of booming demand, but the unit's boss says commercial revenues will still dominate in the future after the break up of its industrial conglomerate parent.
The unit's share of revenue now is about 60% from commercial activities and 40% from defense, up from 35% a few years prior. “There may be a bit more” growth possible, said Jim Currier, President and CEO of Honeywell Aerospace Technologies.
“With all the investments that are happening in defense and the budgets that are increasing in the defense arena and stuff like that, that does present those opportunities,” Currier said June 15 on the eve of the Paris Air Show.
Honeywell's acquisition of CAES Systems that closed last year helped grow the defense share, he added.
Still, he noted the commercial business also is seeing growth. “Do I see a scenario whereby it ends up being 50-50? Probably not. I think we're always going to be a little bit more heavily skewed on the commercial side versus defense,” Currier said.
Honeywell in February detailed plans to split the company into Honeywell Aerospace and Honeywell Automation with the carve out of Advanced Materials already underway. The process is likely to be completed next year. Currier said there was “much more work to be done” before the separation is completed.