Honeywell cuts full-year sales target on parts shortage
A brand of Honeywell is pictured on their sales space through the European Enterprise Aviation Conference & Exhibition (EBACE) in Geneva, Switzerland, Could 22, 2017. REUTERS/Denis Balibouse
Oct 22 (Reuters) – Honeywell Worldwide Inc on Friday minimize its full-year gross sales forecast, as international provide chain disruptions trigger a scarcity of elements and parts for the U.S. industrial conglomerate.
Closed ports because of a resurgence of COVID-19 circumstances in Asia, aggravated by the fast-spreading Delta variant, and labor shortages have strained international provide chains in addition to led to a surge in uncooked materials costs.
Honeywell stated a scarcity of elements had curtailed manufacturing in its largest phase, the aerospace unit. It additionally stated an digital element scarcity was hurting its security and productiveness options unit, which homes the automation gear enterprise utilized by clients together with Amazon.Com Inc .
The corporate minimize its full-year gross sales estimates to between $34.2 billion and $34.6 billion, in contrast with its prior forecast of $34.6 billion to $35.2 billion to “replicate the persistent results of the macro-challenged setting”.
Analysts, on common, had anticipated full-year gross sales of $35.10 billion, in accordance with Refinitiv IBES estimate.
Honeywell additionally narrowed full-year revenue forecast vary to $8.00 to $8.10, from $7.95 to $8.10 earlier.
Shares of the corporate fell 1.6% premarket. They’ve risen practically 6% for the yr.
Excluding one-time objects, Honeywell earned $2.02 per share, beating estimates of $1.99 per share for the third-quarter ended Sept. 30, benefiting from an increase in industrial and enterprise aviation.
Internet gross sales rose to $8.47 billion from $7.80 billion a yr earlier, however missed analysts’ common estimate of $8.65 billion.
Reporting by Kannaki Deka and Ashwini Raj in Bengaluru; Enhancing by Shinjini Ganguli
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