Honeywell Aerospace Downgrades Sales Growth Forecast Amid Supply Constraints
Honeywell Aerospace's sales growth forecast has been lowered to 4% to 5% for this year, down from its previous projection of 7% to 9%. The company cited ongoing supply-chain constraints as the reason for the revision. These constraints have forced Honeywell Aerospace to prioritize deliveries to Boeing and Airbus over its aftermarket business, which is typically a key source of revenue and profit.
The company's adjusted earnings per share are now expected to be between $7.60 and $7.90, below the average analyst estimate of $8.86. This forecast marks a significant downgrade from Honeywell Aerospace's previous outlook. The company had spun off from Honeywell International in June as part of a three-way breakup.
Honeywell Aerospace's CEO, Jim Currier, emphasized that the company is entering this new chapter with 'solid momentum' and will focus on driving innovation and growth through its operating system. However, the company recorded $100 million in separation-related costs and inventory obsolescence charges during the quarter, contributing to a 7% year-over-year decline in core profit.