Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
💎 Reveal Undervalued Stocks Hiding in Any Market Get Started
Honeywell forecasts weak first-quarter profit as supply chain snags hurt
© Reuters. FILE PHOTO: A logo of Honeywell is pictured on their booth during the European Business Aviation Convention & Exhibition (EBACE) in Geneva, Switzerland, May 22, 2017. REUTERS/Denis Balibouse/File Photo
By Nathan Gomes
(Reuters) -Honeywell International Inc forecast first-quarter adjusted profit below estimates, signaling strong demand in its high-margin aerospace unit was not enough to beat the impact of supply chain disruptions and labor shortages.
Shares of the industrial conglomerate, which counts Boeing (NYSE:BA) Co and Airbus SE (OTC:EADSY) as customers, fell nearly 5% to $197.32 in morning trade on Thursday.
Honeywell (NASDAQ:HON)'s aerospace peers General Electric (NYSE:GE) Co and Raytheon Technologies (NYSE:RTX) Corp have also flagged labor shortages and higher costs.
"The supply chain for mechanical components remains constrained due to skilled labor shortages among Tier 3 and 4 suppliers," Honeywell's chief financial officer Gregory Lewis said on post earnings call with analysts.
A shortage of crucial semiconductor chips and higher prices of raw materials have also hit aerospace and defense companies' ability to manufacture products over the past year, leading to delays in output.
Charlotte, North Carolina-based Honeywell expects adjusted earnings in the first quarter to be between $1.86 per share and $1.96, below analysts' average estimate of $2.03 per share, according to Refinitiv data.
It, however, forecast full-year sales between $36 billion and $37 billion, in line with analyst's average estimate, amid strong demand for air travel and oil.
Sustained demand for air travel has prompted more orders from airlines and planemakers for parts and service, benefiting aerospace companies such as Honeywell.
Quarterly sales in Honeywell's aerospace unit, which makes aircraft engines and radars, rose to $3.20 billion from $2.9 billion a year ago.
The company's overall quarterly net sales rose about 6% to $9.19 billion, but missed analysts' average estimate of $9.25 billion.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.