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UPDATE 1-Honeywell review opts to keep bulk of aerospace business

(Updates after company announcement)

Oct 10 (Reuters) - Honeywell International Inc unveiled a corporate makeover on Tuesday that ties its growth more strongly to aerospace technology - the opposite of what activist investor Third Point Capital has urged since April.

The results of the manufacturer's portfolio review announced before U.S. markets opened said it would spin off its home and ADI global distribution business and transportation systems into two independent, publicly-traded companies by the end of 2018.

The company said the two businesses together generated annualized revenue of $7.5 billion.

In the statement it also raised the low-end of its full-year 2017 earnings guidance by 5 cents to $7.05 - $7.10, excluding any pension mark-to-market adjustment.

Its shares were up about 1 percent in light premarket trading following the announcement.

Honeywell Chief Executive Officer Darius Adamczyk, like his peers at other industrial conglomerates, has been under pressure to pull apart a portfolio of disparate businesses that includes automotive turbo chargers, burglar alarms and the Xtratuf boots popular in Alaska's fishing industry.

By retaining its aerospace businesses, Honeywell defies Third Point's calls to spin off a division which accounted for about 36 percent of total revenue in 2016.

The spinoff includes the low-margin automotive turbocharger business, joining other companies, including auto supplier Delphi Automotive Plc, in shedding technology tied to the internal combustion engine as regulators around the world crack down on emissions and talk of mandating a switch to battery-electric vehicles over the next two decades.

The new homes and global distribution business would provide services in home heating, ventilation and air conditioning (HVAC) controls and security markets, and would be a distributor of security and fire protection products. (Reporting by Alwyn Scott in New York and Arunima Banerjee in Bangalore; editing by Patrick Graham)