Honeywell's Sales Forecast

(Reuters) – Honeywell (NASDAQ:HON) forecast annual sales below Wall Street estimates on Thursday due to weakness in its industrial automation business, causing a 3% drop in shares before the market opened.

The industrial giant now expects 2024 sales between $38.6 billion and $38.8 billion, compared to analysts' average estimate of $39.20 billion, according to data compiled by LSEG.

Honeywell's industrial automation segment, which aids factories in automating their manufacturing processes, reported a 5% decline in organic sales for the third quarter, primarily due to weak demand from warehouses. Furthermore, supply chain shortages and inflationary pressures presented ongoing challenges.

Conversely, the company's aviation division continues to thrive, benefiting from a surge in demand for aircraft parts, which led to a 10% increase in organic sales.

Honeywell reported an adjusted profit per share of $2.58, exceeding expectations of $2.50, even amidst an impairment charge associated with classifying its personal protective equipment (PPE) business as assets held for sale.

Total sales for the quarter ending September 30 rose about 5.6% to $9.73 billion, though it fell short of the estimated $9.90 billion.