Honeywell Lowers Sales Guidance on Supply-Chain Constraints

By Dave Sebastian

Honeywell International Inc. said it lowered its sales guidance for the year due to supply-chain constraints and the ongoing effects of what it described as a "macro-challenged environment."

The industrial conglomerate Friday said it sees 2021 sales of $34.2 billion to $34.6 billion, reflecting organic growth of 4% to 5%. It previously expected sales of $34.6 billion to $35.2 billion, reflecting organic growth of 4% to 6%.

Organic sales growth strips out the effects from foreign currency translation and acquisitions and divestitures for the first 12 months following the transaction date.

Honeywell said it expects adjusted earnings of $8 a share to $8.10 a share. It previously expected adjusted earnings of $7.95 a share to $8.10 a share.

The company saw supply-chain constraints, increasing raw material inflation and labor-market challenges in the third quarter, for which it posted higher profit and sales, Chairman and Chief Executive Darius Adamczyk said.

"We continue to focus on mitigating these challenges in the fourth quarter," he said.

Write to Dave Sebastian at [e-mail]

(END) Dow Jones Newswires

October 22, 2021 06:56 ET (10:56 GMT)

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