Honeywell made some big moves this year. It tried and failed to take over United Technologies, and then announced the sale of its Technology Solutions business and spun off its chemicals and resin business to create a new independent company called AdvanSix.
And while most of these moves were received well by Wall Street, investors were shaken when management adjusted its third-and-fourth-quarter 2016 and overall expectations.
"I have to tell you, I was astounded by the reaction," Cote said about the stock's 7 percent fall on Oct. 7 in response to the guidance.
Cramer noted that the presentation in the beginning of October addressed upfront the weakness in aerospace. Many investors associate Honeywell with aerospace, thus, they may have interpreted it as more of a dire situation than it actually was.
Cote said he agreed the aerospace industry is not as troubled, stating that while the bizjet market is declining, the commercial, defense and aerospace segments are doing fine. Honeywell also indicated in its updated presentation that the company's oil and gas business bottomed in the third quarter.
Cote rebuffed the theory that the company is squeezing the business to generate margins.
"I can understand how you might feel that way. I can understand feelings, but then you should at least search for some data that causes you to say that," Cote said.
Moving forward, Cote is transitioning the company's model to be less of a hardware model, with almost 50 percent of its engineers working to develop software. He added that based on the M&A profile of the company and its focus on technology and software, he thinks it is the best positioned industrial company when it comes to understanding the importance of physical and digital products.