Honeywell Updates Full-year Guidance On Supply Chain Constraints

While reporting third-quarter results on Friday, Honeywell (HON) updated its full-year guidance to reflect the persistent effects of the macro-challenged environment as well as the third-quarter results. The company now sees organic growth in sales at 4% - 5%, revised from prior guidance of 4% - 6%.

"Our disciplined approach to productivity and pricing helped deliver a strong third quarter despite an uncertain global environment marked by supply chain constraints, increasing raw material inflation, and labor market challenges. We continue to focus on mitigating these challenges in the fourth quarter," said Darius Adamczyk, CEO.

Full-year sales are now projected to be in the range of $34.2 billion to $34.6 billion. Previously, the company projected sales in range of $34.6 billion to $35.2 billion. Adjusted earnings per share is now expected to be $8.00 to $8.10, revised from prior guidance range of $7.95 - $8.10. Analysts polled by Thomson Reuters expect the company to report profit per share of $8.07 on revenue of $35.1 billion. Analysts' estimates typically exclude special items.

Third quarter adjusted earnings per share was $2.02, up 29% year over year. On average, 21 analysts polled by Thomson Reuters expected the company to report profit per share of $1.99, for the quarter. Net profit to company was $1.26 billion or $1.80 per share compared to $758 million or $1.07 per share.

Net sales increased to $8.47 billion from $7.80 billion, previous year. Analysts expected revenue of $8.65 billion, for the quarter. Organic sales were up 8%.

Shares of Honeywell were down 3% in pre-market trade on Friday.

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