Honeywell Cuts Full-Year Sales Target on Parts Shortage

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A logo of Honeywell is pictured connected  their booth during the European Business Aviation Convention and Exhibition (EBACE) successful  Geneva, Switzerland connected  May 22, 2017. (Denis Balibouse/Reuters)

A logo of Honeywell is pictured connected their booth during the European Business Aviation Convention and Exhibition (EBACE) successful Geneva, Switzerland connected May 22, 2017. (Denis Balibouse/Reuters)

Honeywell International Inc. connected Friday chopped its full-year income forecast, arsenic planetary proviso concatenation disruptions origin a shortage of parts and components for the U.S. concern conglomerate.

Closed ports owed to a resurgence of COVID-19 cases successful Asia, aggravated by the fast-spreading Delta variant, and labour shortages person strained planetary proviso chains arsenic good arsenic led to a surge successful earthy worldly prices.

Honeywell said a shortage of parts had curtailed accumulation successful its biggest segment, the aerospace unit. It besides said an physics constituent shortage was hurting its information and productivity solutions unit, which houses the automation instrumentality concern utilized by customers including Amazon.Com Inc.

The institution chopped its full-year income estimates to betwixt $34.2 cardinal and $34.6 billion, compared with its anterior forecast of $34.6 cardinal to $35.2 cardinal to “reflect the persistent effects of the macro-challenged environment.”

Analysts, connected average, had expected full-year income of $35.10 billion, according to Refinitiv IBES estimate.

Honeywell besides narrowed full-year nett forecast scope to $8.00 to $8.10, from $7.95 to $8.10 earlier.

Shares of the institution fell 1.6 percent premarket. They person risen astir 6 percent for the year.

Excluding one-time items, Honeywell earned $2.02 per share, beating estimates of $1.99 per stock for the third-quarter ended Sept. 30, benefiting from a emergence successful commercialized and concern aviation.

Net income roseate to $8.47 cardinal from $7.80 cardinal a twelvemonth earlier, but missed analysts’ mean estimation of $8.65 billion.

Reuters

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