Report: Honeywell to Spin Off Turbo Business

Honeywell International Inc. plans to spin off its turbocharger business as part of a major restructuring aimed at streamlining the company’s operations, Reuters reports.

The turbocharger unit and other non-core businesses would be split into two or more new publicly listed companies, according to the news agency, which doesn’t cite its sources.

Reuters says the plan could be announced as early as this week. Honeywell declined to comment.

One of Honeywell’s largest investors, New York City-based hedge fund Third Point LLC, has called for the Morris Plains., N.J.-based conglomerate to divest several businesses. This includes the company’s aerospace operations, which is Honeywell’s largest unit and could create as much as $20 billion in shareholder value.

At this point, Honeywell likely will sell off pieces of the aerospace business—such as turbocharging—but not the whole division, Reuters says. The aerospace group also produces auxiliary power units and engines for aircraft.