Honeywell International Inc. will merge its transportation systems unit into its aerospace division to take advantage of similarities between the businesses, the diversified U.S. manufacturer said on Monday.

The transportation business, which makes turbochargers, has been Honeywell's smallest of its four segments by sales but has seen fast growth, with profit rising 15 percent last year.

Following the realignment, Honeywell will have three business segments: aerospace; automation and control solutions; and performance materials and technologies.

"Born out of our aerospace business, the automotive turbocharger is a miniature jet engine," Honeywell Chief Executive Officer Dave Cote said in a statement, adding that the realignment would "leverage shared strengths and synergies."

Honeywell will report its financial results, including transportation systems within aerospace effective with its third-quarter report. Honeywell is due to report second-quarter results on Friday.

The company announced the realignment as it said it completed the $155 million sale of its friction materials business to Federal Mogul Corp.