Honeywell International Inc. (NASDAQ:HON) Credit Suisse 10th Annual Global Industrials Conference Transcript November 30, 2022 8:00 AM ET
Executives
Greg Lewis – Senior Vice President and CFO
Analysts
John Walsh – Credit Suisse
John Walsh
All right. Good morning, everyone. And welcome to the 10th Annual Credit Suisse Global Industrials Conference. We are very excited to have everyone here live and those joining us on the webcast. We are going to be kicking off the conference with Greg Lewis, Honeywell’s SVP and CFO. Before we head into kind of a fireside format just has a couple of prepared remarks to make.
Greg Lewis
Yeah. So, great, John.
John Walsh
Over to you, Greg.
Greg Lewis
Thank you very much. Really happy to be here and I will fly right through this pretty quickly so we can get to the conversation. So, I — one thing, I guess, I would want everyone to take away is, when you think about Honeywell, we are very well known for our execution culture.
And that is what we pride ourselves on and as we think about what’s in front of us now, we feel very strongly positive about a lot of the trends that are going to help our business as we go forward from here.
We have done a lot from a supply chain transformation, a digital transformation perspective has served us super well through these last three years and last year in particular, I’d say last year, we are still a month away from finishing it, but last year.
And our end market exposure, Aerospace, Energy, sustainable buildings is going to be really, really helpful for us. And we talked all year long about our backlog. We are a all time high backlog, $29 billion that’s going to help us as we go into next year as well.
But we really wanted to play capital in a much more aggressive manner. We talked about it at our Investor Day, committed to $25 billion over three years. I think the — I think as we go into next year, it’s going to be a Honeywell advantaged environment and we can talk a little bit about that, but we are excited for that.
And so I think we are a little bit differentiated as we go into 2023, because we feel like even in the difficult operating environment that we have, we definitely have a path to growth and that’s something we feel very strongly about.
And maybe the last comment is really just about ESG. ESG is something everyone talks about much, much more these last two years. We have got a very strong track record on ESG, and I would say, it’s not something that we have just come to the party from a marketing standpoint on. It’s actually the way we have worked for many, many years.
So just to clear the decks, a lot of volatility this year, supply chain, Russia, currency, interest rates. We are still having a very strong year and I’m here just to reaffirm the guidance that we gave back about 45 days ago.
And as I mentioned, when you think about the transformation that we have done, we talked about this in our Investor Day, last five years, six years, a lot of foundation building. Next five years, really all about creating value from the digital threads we are building and really driving end-to-end process, as well as automation.
And so I think there’s still a lot in front of us, we did a lot of heavy lifting, but we are not nearly at the end here, and I think, there’s a lot more for us to accomplish in our transformation. I’m excited about that.
And then I’m going to test everyone on this slide, so please read it deeply and we will have the exam on the way out. I don’t expect you to read all this, but the point is, whether it’s environment, social or governance. Again, this is the way Honeywell has operated.
And so we have got a very strong track record, very proud of the company that I worked for. I tell our teams often when we talk, go read our ESG report. It’s about 90 pages and if you are not proud of the company that you work for, call me directly and let’s talk about it, because I think, we have done some terrific things for the communities we serve, as well as our other stakeholders.
And then, just lastly, before we talk a little bit about 2023, we just finished a great event, Kevin Dehoff and the team. Honeywell Connect 2022, a couple of weeks ago. I’m really excited about what Kevin is doing in that business. He’s been the CEO of the business now for the last five months or six months or so and really put a strong emphasis around execution and delivering new products.
And so part of what we did there was launched 15 products, we live demoed 22 of them and it was a tremendous event, almost 150 customers. Again, we are not putting the cart before the horse here, but this is something that we are really excited about and I think the themes around sustainability, digitization, cybersecurity were really what they honed in on. But really excited about what Kevin is doing there.
And then, lastly, this was the slide that we pitched in our earnings deck. Again, message simply being we feel very good about where we are, whether it’s the backlog that we have to draw from, the demand that we have got in at least three out of the four businesses we have talked a little bit about, warehouse automation and the digestion period that we are going through, so not — no new news there and we feel very good that we are going to have a nice growth path for next year.
There are going to be some things that are going to be unique with interest rates rising and we can talk a little bit about that. Our pension income is going to go down pretty substantially, but again, not a cash problem at all. We are 125% funded, so simply an EPS — non-cash EPS difference, which will give everyone a lot more visibility to right around the end of the year when we snap the line on a lot of that.
So we feel great about where we are and look forward to diving into some of the questions that we have for today.
Question-and-Answer Session
Q – John Walsh
Great. I appreciate that was a really good kind of state of the union…
Greg Lewis
Yeah.
John Walsh
… overview. I guess maybe if we could kind of start higher level, maybe kind of around the macro and maybe a little bit of what you are seeing around the different geographies…
Greg Lewis
Yeah.
John Walsh
… of the world.
Greg Lewis
Yeah. So it’s interesting because everyone talks about a recession as if that’s one thing and the world is going to behave very differently. We all know that and see it really clearly, when I look across our own portfolio and from a regional perspective, the U.S. and the Americas really strong. Again, we will have some softness just because of the size of inside of the U.S. business and it’s so U.S. concentrated. But the rest of the portfolio across super strong and feel really good about.
Europe, as everyone knows, is probably going to be one of the more challenged environments. Our sales have held up nicely so far. So, but we are going to be cautious as we go into the new year around that.
China, with a lot of the lockdowns and just they are still not flying. So internationally at least, so our Aerospace business is challenged with the lack of any flight hour growth. But the SPS and HBT business is growing nicely.
And PMT just coming through some tough comps on some bigger projects, but I feel good about the overall demand environment. Obviously, a lot is happening every single day there with some of the things that are going on with the lockdowns and so we are again being very cautious around that.
But –and then Middle East, super strong. I mean there’s so much investment going on. I was also just in Latin America, as I mentioned, a couple of weeks ago, lots of opportunities there for sustainability.
They are going to be a big player in things like SAP and we are going to partner with some folks down that way to help bring our technologies to their solutions. So broadly speaking, things are reasonably good, but I know that we are going to have volatility as we go into next year.
John Walsh
Great. And then maybe as we think about that and definitely want to come at supply chain from kind of two different ways, maybe one is a little bit kind of longer term thinking about the transformation there. But maybe just kind of more real time.
Greg Lewis
Yeah.
John Walsh
What are you kind of seeing with your lead times and…
Greg Lewis
Yeah.
John Walsh
… stuff from your suppliers and…
Greg Lewis
Yeah.
John Walsh
… any kind of update around that?
Greg Lewis
Yeah. So we have — over the last year in particular we have really broken it into two pieces, Aerospace and everyone else. And if I think about that right now, I mean, the semiconductor supply chain is getting a little bit better every quarter.
We are starting to see some of our past due backlog come down in PMT, HBT, SPS, so we see those supply chains, healing or catching up a bit, which is positive. I still think the bigger unlock for semis is probably going to be in 2023. So it’s not like it’s fixed necessarily at this point. A lot of the capacity that’s coming online isn’t actually coming online until the first part of next year. So that’s getting better.
If I think about Aerospace and the overall challenges in labor, which really is what that is, I mean, you can go up and down the value chain, starting with pilots and all the way back into the supply chain and there’s just a pretty substantial shortage of skilled labor there.
And so that is getting better, more slowly and we are — our past due backlog continues to grow. We have talked a lot about the decommit rates of our suppliers being in the 20% range. That’s still true.
Our volumes are getting a little bit bigger each quarter, but the decommit rates are still hanging around in that 20% type of an area and so we are going to continue to build past due backlog probably even going into next year.
So I think that one is just going to have a bit of a longer ramp and my guess is that’s, probably, what you are hearing from a lot of the other aerospace players, because this is not really — this is not a Honeywell common, it’s really more around the industry.
John Walsh
Great. And then if we just think about the backlog broadly, can you just remind us as you kind of think about the different businesses like the resiliency of that backlog?
Greg Lewis
Yeah. Yeah. If I just go through the businesses, each one of them, that $29 billion, each one of them has a really nice share of that and I feel like — we have been looking out for things like order cancellations.
Are we seeing that happening? And while that may have happened in like some small sponsors, there’s not any of that that’s given me any cause for concern that we shouldn’t be confident in the quality of the backlog that we have.
So broadly speaking, I think, that $29 billion is going to help us as we go into the first half of next year, in particular, because in some of the non-Aerospace businesses, I think, we will see some orders weakening as we go into next year.
But that backlog will kind of help us through and I think that I expect the back half of next year we will probably have a little bit better demand profile. But I feel pretty confident about the resiliency of the backlog overall.
John Walsh
Great. And then very topical inflation, right? So just wondering if you could talk a little bit about what you are seeing kind of from your own ability on price and then maybe the prices you are getting your input costs?
Greg Lewis
Yeah. Yeah. We — I mean, the team is one of the things that, I would say, I’m proudest about of our teams in 2022 is, the effectiveness we have had with our pricing programs, and again, I will point back to our digital capabilities that we have built. We are doing it in a far more surgical way than we would have ever been able to do prior to having that level of visibility and the ability to have a closed-loop understanding what’s happening.
We have had, I think, a very good price uptake and I think that speaks to the technology differentiation that we have in the marketplace. So that we have reported 11% price gain in the third quarter. That will probably be around 10% for the year give or take and that’s been a big part of why we have been able to have good margins this year, even with a little bit of volume declines overall.
As we go into next year, I don’t think inflation is going away anytime soon. I don’t think we are going to see maybe the spikes — the spikiness that we had this year, but I think inflation is going to moderate a little bit, but it’s going to be with us.
And as we handle that next year, we will probably going to have to just be a little bit more cautious about demand destruction and so that’s a little bit of what we are looking at with our business teams.
We are watching cancellation rates, win rates, et cetera, as well as just the order rates themselves by region and inside of the product lines in order to make sure that we are able to be smart about the actions that we are taking that we don’t get too far afield from the competitives that we have.
John Walsh
Yeah. And then, I guess, as we think about kind of the global stimulus that’s happening right now, whether it’s in the U.S…
Greg Lewis
Yeah.
John Walsh
… Infrastructure Jobs Act, right, IRA, I mean how is that going to translate into your business and what do you kind of think the timing of that looks like?
Greg Lewis
Yeah. Well, like most things that are kind of attached to the government, they go slow. So I’m not expecting to see a big tidal wave. I think it’s going to be more of a gradual spending of some of those funds.
And the big places that I do expect to see that are going to be in the Building space, as well as in PMT, because all things sustainability, I think, are really going to be the — some of the major places we will get some of that.
With some of the CHIPS Act, that’s going to drive investment in the semi industry here in the U.S. We actually have a good part of our business that supports the semi industry. So I think that’s going to be a positive for us as well. So those two would be the — PMT and HPT would be the two places that we will be looking most closely for the impact of that. But, I think, again, it’s probably going to filter in over time.
John Walsh
And then the concept of near shoring or re-shoring, just curious, are you seeing it from your customers?
Greg Lewis
Yeah.
John Walsh
Are you doing it as an organization, maybe give us your view?
Greg Lewis
Yeah. Well, maybe let’s just start with whether deglobalization is a good thing or not and I actually don’t think that it is. I think the world is actually better off if we are partnering with one another outside of our own borders.
And while it might make for a good news real, I think, cooler heads realize that, that’s probably true. And so while I think there will be near shoring, and to be clear, I mean, we are also looking at our own supply chain from a resiliency perspective with those kinds of things in mind.
I don’t expect that to be massive. Now again, strategic things like semis, the government is making some very specific incentives to encourage that and I understand why that’s happening. But I don’t think you are going to see. It’s really difficult to completely uproot your supply chain, and frankly, it’s very inflationary, right? So I think people are going to take those decisions really carefully as opposed to just like wide open the doors and run through it dramatically.
And so, for Honeywell, we are taking some actions. But again, I will use the term surgical. We are sort of doing a few things around the edges to create some redundancy in places where we think risk levels may have gone up. But I don’t, again, that’s not going to be a massive change.
One of the things that we have been a beneficiary of over the years has been our HGR strategy of local-for-local in the first place. So in many of the countries where we are doing business, we have local supply, Europe, Eastern and Western Europe kind of serve one another, the Americas, we have a lot of presence, Mexico and the U.S. for the Americas and China for China in a big way. China does some manufacturing and export but the lion’s share of our manufacturing activity in China is for China. So we don’t have a huge problem to solve in that regard and I think that’s — again that’s served us well over the last 10 years.
John Walsh
Great. And if we go back to kind of those opening slides, right, started with supply chain and you got a slide on transformation.
Greg Lewis
Yeah.
John Walsh
So maybe we could just take a step back and…
Greg Lewis
Yeah.
John Walsh
… maybe just talk about what’s different around supply chain…
Greg Lewis
Yeah.
John Walsh
… now versus, I don’t know, five years, 10 years?
Greg Lewis
Yeah. Well, first and foremost, visibility, and that’s — when we started our digital transformation I was leading something called Enterprise Information Management. It was early 2017 and we had this vision of what we were going to try and accomplish. And I am so glad that we stepped forward into that journey, because the people talk a lot about the power of data, but it’s real.
I just our ability to see is impressive, I mean, if Torsten Pilz, who is our Chief Supply Chain Officer were here, he would tell you I could at any point in time ask him how are things going for the month of November at the end and he can pull up a digital tool and see exactly where the ships are with our stuff on it. And so he has changed the supply chain’s capabilities dramatically in the last five years in terms of our ability to see, and therefore, make good and strategic decisions for that supply chain overall.
We are also doing some things as you can probably appreciate with resiliency and our own supply base, making sure that not only are we resilient but also reaching back into our supply base from a resiliency standpoint and making sure that they also are taking some of those actions as well.
And then, like I said, when you think about the inflation problem and supply shortages, a lot of the work that we have been doing as well has been redesigning where we can to try to find alternate sources of supply, and again, back to the capabilities that we have built there. It’s been a big enabler for us to be successful.
So we are a very different company in that regard than we were five years ago and the ability to have that cockpit and knowing what’s going on near real time has been incredibly valuable to us on top of the physical simplification that he has done, because we talked about that a lot as well, the 300 rooftops cutting that in half and we are a long way towards that and that itself is given us leverage from a physical perspective and also reduced risk as well. So that’s — the supply chain is incredibly different from where we were.
And there’s still more to go. So we are not done. There is — the thing that he’s working on right now is, I would say, two main areas, one is really instrumenting our planning system throughout the network and we are about 65% way done with that and then driving automation in our own facilities, like those are probably the two big next steps that we are working on.
John Walsh
Great. Maybe just jumping down into the segments here, obviously, in your slides, you had some preliminary thoughts looking forward. Maybe just starting with Aerospace, right?
Greg Lewis
Yeah.
John Walsh
Because it’s Aerospace, but there are several businesses under there.
Greg Lewis
Yeah.
John Walsh
So maybe you can just talk a little bit about what you are seeing more on the Commercial side and then I’d say on the defense and space side?
Greg Lewis
Well, I mean, everybody is building airplanes and they all want to go as fast as they possibly can. And so whether it’s BGA or ATR, there’s no lack of demand and that, as I mentioned in the early part of this discussion is going to be entirely gated by the supply chain. So I have zero concerns about demand is that as far as that’s concerned on the OE side.
From an aftermarket perspective, business jet flight hours are above where they were pre-pandemic. I mean that’s been a really big shift to people flying private during the pandemic and that doesn’t seem to be going backwards. But we are probably at a place where the aftermarket growth there is going to moderate single digits type of thing.
The aftermarket in ATR, still a long way to run, because, again, back to international travel, the widebodies are not even close to where they were pre-pandemic and I think when you start seeing that pick back up. We talk often about the fact that we have 3 times the dollar content per flight hour for our own aftermarket business in widebody. So that’s still yet to come. So I think the aftermarket for ATR should still be really, really healthy for the foreseeable future.
And then when you think about defense, we have declined for the last two years. A big part of that is our supply chain, because roughly half of our past due backlog is sitting in the defense area. But again, I would say, I feel good about the demand position.
Even with all of the social unrest and the world’s security concerns, we haven’t really seen the orders tick up associated with replenishment in the defense area, which I think is going to come. So again when I think about medium-term tailwinds, I think, that is something that we will benefit from over the longer term.
John Walsh
One of the things you mentioned earlier in the opening around sustainable buildings, right?
Greg Lewis
Yeah.
John Walsh
So I guess can you remind us how much of your building portfolio would be driven by things like new construction…
Greg Lewis
Yeah.
John Walsh
… versus kind of the retrofit opportunity and…
Greg Lewis
Yeah.
John Walsh
… how you think about that?
Greg Lewis
Yeah. The way I would think about it, I mean, certainly, non-res construction is important to us, and was growing, I’d say, high-single digits and that’s probably going to moderate down to low-single digits next year and beyond.
But to your point about retrofit and sustainability, I think, you are going to see a lot of investment there. Our sustainability business is around about $400 million at this point in terms of healthy buildings, just our healthy buildings offerings. So that’s grown quite nicely.
And you mentioned some of the government funding. People are going to want to have sustainable buildings, whether that’s air quality, whether that’s energy efficiency. The — we all — I think we know at this point, 37% of greenhouse gas emissions come from buildings.
So people are going to go and deal with their issues around net zero. They have got to do something with building. So to me that’s not an if, it’s how fast and so that’s one of the things that really underpins our confidence in the growth of that business as well.
John Walsh
And then can you just remind us kind of the mix within that business kind of software, equipment and kind of what Honeywell brings to that market?
Greg Lewis
I guess the way I would think about it is, our projects business is, call it, $1 billion-ish of the total portfolio, so just around about 20%. There’s a fairly sizable software component inside. The connected buildings is a few hundreds of millions of the total HCE portfolio inside of HPT and it’s actually one of the best connected offerings that we have.
We have got great connectors that really power a lot of the opportunity to connect outside of just Honeywell systems and so I think we have got an advantage there. It’s not just a matter of can we connect our own equipment, but we have the ability to connect others as well and then layer on top of that some of the analytics on the Forge platform.
And we are doing that in our own building. We built our new building in Charlotte. We moved into it a little over a year, year and a half ago maybe at this point. If you haven’t come, please come and visit us and we will show you. But the technology that business has created for being able to monitor and address set points, and again, whether it’s energy, air quality, et cetera, is second to none.
John Walsh
Great. And so you just mentioned Honeywell Forge there. It was in your slides. As CFO kind of how do you measure the success of that within an organization?
Greg Lewis
Well, if you think about — for us, when we created the HCE portfolio, and again, think back, this was 2018 and we essentially formed it into its own business. One of the reasons we did that was to create one platform, right?
Because if you can imagine if we left it in each of the segments independently, they would have each built their own tech stack, we would have wound up with a ton of technical debt, lord knows whether we would have had the same type of user interface across customers and think about how we were going to go to market from a CPQ perspective.
And so part of the thing that I’m happy about as a CFO is that we built one stack and I know that it’s going to be, because when you think about scalability and a software business versus scalability in a manufacturing business, what we want is as little separate patching of things as possible, right?
And so, I’m happy, because we are creating and have created a scalable platform across the entirety of Honeywell and to me, that’s productivity, right? We are going to be able to create leverage and scale as that business scales up. And so that’s one aspect.
The other one is just simply double-digit growth. We are growing that business roughly 15% per year. It’s, obviously, as a software business has accretive margins to the company. So when you think about us raising our growth algorithm, both on topline, as well as our margin expansion, that’s a player in there too, because if I’m growing that business at, call it, 15% plus. That’s going to add to the topline acceleration, as well as my margin expansion.
John Walsh
Great. Maybe I will see if there’s any questions out in the room. All right. Let’s kind of just keep going down the P&L, right? So I guess you talked a little bit about Intelligrated earlier, right?
Greg Lewis
Yeah. Yeah.
John Walsh
So when we think about that kind of SPS portfolio, right? It feels like there’s several platforms under there?
Greg Lewis
Yeah.
John Walsh
Maybe just kind of unpackage that and kind of what drives those different businesses?
Greg Lewis
Yeah. Yeah. So you are right, I mean, we have got kind of four major business units, our Sensing business, we have got our Mobility business, we got Intelligrated and we have got our PPE business. And if you just step back for a minute, the whole sensor trend, whether it’s in healthcare applications, whether it’s in transportation, logistics, et cetera, that’s roughly a $2 billion business for us and that’s got a lot of runway to it.
And anything that’s going to be requiring Sensing, which is anything that’s going to be connected these days is going to have a lot of good runway to it. So that’s a great trend for us to take advantage of.
The other one, I would say, e-commerce, while we are, again, going through a little bit of a digestion period. I don’t view that as a long-term change in trajectory. I view that as a pause and so I think you will see that reaccelerate as well.
And then when you think about labor, in general, and whether it’s the cost of labor, the difficulty getting labor, there’s going to be a continued effort and need to be automating, again, whether anything where there’s workers warehouse, people and factories, automating the workflow for people in trucks driving around delivering packages, all of that’s going to be accretive for our business, because that’s going to touch Intelligrated, it’s going to touch PSS.
So I think that there are still some really healthy macro trends and while we have alluded to the fact that this business is probably going to be — it’s probably going to have the toughest demand environment for 2023, again, I view that as a little bit of a dip as opposed to and then we will get the continuation of growth beyond 2023. So I feel good about what’s happening there.
And I think George Koutsaftes, who is now running the business, took over in first quarter of this year is doing a really nice job with his focus around operations and driving productivity and you are seeing some of that in the margin expansion.
John Walsh
Great. And then another big topic from a macro perspective, right, Energy transition, right?
Greg Lewis
Yeah.
John Walsh
So, it means a lot of different things to different people…
Greg Lewis
Yeah.
John Walsh
… kind of remind us what it means for Honeywell?
Greg Lewis
Yeah. Well, I guess, what I would say is this, when you think about our sustainability business inside of PMT, whether its carbon capture, plastics circularity, sustainable fuels, safer for airlines, hydrogen in the future.
There are so many ways in which we are going to play in that energy transition, UOP in particular, has some of the greatest technologies for each of those areas and we have been the leader in sustainable fuels for over 20 years.
And so getting back to why we feel so confident about the medium to longer term trends is that’s not going away. There’s some of that that’s active today. Some of it’s really more in the future. But our technologies are going to be required for making this happen.
And we talk a lot about energy transition being and all of the above, right? People are going to continue to drive, fly. The activity level is going to go up. So I do believe that it’s not like the demand for traditional oil and gas is going away tomorrow.
This is going to be a long time horizon and so you are going to get investment both in traditional hydrocarbons, as well as in renewable fuels and other aspects of that energy transition. And we will play in both, which is again, why we feel so good about the position that we have today.
John Walsh
Great. And then, I guess, if we go back to one of those slides, there was some discussion around allocation of R&D for new product development.
Greg Lewis
Yeah.
John Walsh
So maybe what are some of the ways you measure success…
Greg Lewis
Yeah.
John Walsh
… right, that you are spending the dollars?
Greg Lewis
Yeah. I mean we look at whether we are creating sales from new products over a three-year cycle and so we measure that. We are getting roughly 32%, 33% of our sales over a three-year horizon from our NPI.
And that’s Suresh and now, John Waldron, his CCO for the company partner very closely on that, and again, when you think about Honeywell, and I mentioned sort of the execution orientation.
Part of the reason why I know that, that’s going to continue to create value is, because we have a pretty deep operating system from the top all the way down. It doesn’t mean that at the center Honeywell is deciding what to invest in, the businesses own their technology roadmaps.
But you can be sure that we have got a very rigorous operating system around how we make those decisions. Are we allocating that capital properly, are people calling the long tail, are we getting the innovation bang for the buck that we are looking for. And so, I think that’s on, I will call that the traditional NPI, that’s what we are working on.
And then we have talked at length about our BTIs and those are curve vendors, right? Those are generally things that are going to make a big difference all on their own that, in some cases, create brand new businesses, like, we have done with sustainability. So that gets a lot of rigorous focus with the operating cadence that we have with the company, and yeah, that’s really how we think about it.
John Walsh
Great. And then maybe just I will throw it out there if there’s a question in the last couple of minutes from the audience, otherwise, I have another one. So can we think about that same thing, but just instead of R&D around sustainability, right? So how does that now factor into your decisions…
Greg Lewis
Yeah.
John Walsh
… as you are running the business?
Greg Lewis
Yeah. So, for ourselves, I mean, we are — we have allocated roughly $50 million per year for CapEx for our own — dealing with some of our own sustainability investments and we have a Sustainability Council, myself, Anne Madden, Vimal, a few others in the sustainability space.
And so we are always creating a pipeline of ideas for how we are going to address our own sustainability challenges in our operations and so that’s the vehicle that we use to create a funnel and screen opportunities for us.
And again, we are committed to and I protect that $50 million budget so that businesses don’t go, hey, times are tough, I can’t afford that thing, because to be honest, I mean, those tend to have longer payback periods for them.
But they are important for us to achieve our objectives. So my involvement directly is actually one of the governance aspects that makes us confident that we know we are going to deliver on that objective.
John Walsh
No. That’s great. All right. Well, I will kick it back to you, if you have any final closing remarks here in the last.
Greg Lewis
Yeah. No. I guess I would just say the — I have just said this to our own employee base. I will say the same to you guys. I mean, we feel very good about where the company is at. Obviously, the world is still a very volatile place and I think it’s — we are not done with that volatility.
The last three years have been pretty challenging. I think the next two years to three years will be as well. But we feel great about our ability to execute through that and we are looking forward to deploying capital in a more aggressive manner and I think 2023, and hopefully, beyond that should be a Honeywell advantaged environment for us to go do that.
John Walsh
Great. Well, Greg, I’d like to thank you for being with us.
Greg Lewis
Yeah. Thank you.
John Walsh
I appreciate it.
Greg Lewis
Yeah. Great.
John Walsh
Great. Thanks.
Be the first to comment