Honeywell Cuts Sales Projections

By Maria Armental 

Honeywell International Inc. on Thursday cut its sales projections, citing a business slowdown and delays.

The Morris Plains, N.J.-based conglomerate now projects adjusted profit of $6.60 to $6.64 a share with sales down 1% to 2% from the year ago. It previously projected $6.60 to $6.70 a share in profit with sales declining about 1%.

Honeywell said sales would fall 3% in the third quarter and that segment margin would narrow to a range of 17.3% to 17.5%. In July, Honeywell had projected sales in the quarter to remaining flat or increase 1% from the year-ago period with segment margin in the 18.7% to 18.9% range.

Shares, up 12% this year, fell 4.5% to $110.39 in after-hours trading.

Best known as a maker of aircraft parts and climate control systems, Honeywell has been expanding its industrial software business, adding privately held Intelligrated this year in a $1.5 billion cash deal and spinning off its resins and chemical business as a separately traded public company.

A Wall Street darling the stock of which has surged since the financial crisis, Honeywell unsuccessfully sought to merge with United Technologies Corp., a deal that largely died over antitrust concerns as it would have brought together two of the largest players in the aerospace and commercial-building equipment businesses.

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

October 06, 2016 19:58 ET (23:58 GMT)

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