Honeywell's Tepid Sales Forecast: Industrial Automation's Drag
Thursday, Oct 24, 2024 8:20 am ET
1min read Honeywell International Inc. (HON.O) recently lowered its annual profit forecast, citing weaker demand in its industrial automation business. The company's shares fell by 4.5% in premarket trading following the announcement. Honeywell's industrial automation segment, which includes warehouse and workflow solutions, has experienced volume softness, leading to a decline in sales. The company is also grappling with a slower-than-expected rebound in short-cycle businesses, such as its mask-making safety and productivity solutions unit.
Honeywell's second-quarter sales and earnings beat expectations, driven by a 5% increase in overall sales to $9.58 billion. However, the company's industrial automation segment reported an 8% decline in organic sales, which contributed to the downward revision in the annual profit forecast. Honeywell now expects an adjusted profit of $10.05 to $10.25 per share, down from its previous guidance of between $10.15 and $10.45 per share.
To mitigate the impact of short-cycle businesses on its earnings outlook, Honeywell is focusing on its aerospace and other long-cycle businesses. The company's aerospace unit, which makes parts for Boeing and Airbus, contributed to the overall sales growth. Honeywell is also executing on CEO Vimal Kapur's vision of better aligning the overall business to the megatrends of automation, the future of aviation, and energy transition.
In the long term, recent acquisitions such as CAES Systems and Air Products' LNG business are expected to contribute to Honeywell's earnings growth. These acquisitions will help diversify the company's revenue streams and reduce its reliance on short-cycle businesses. However, the impact of these acquisitions on Honeywell's short-cycle businesses and overall earnings remains to be seen.
The current economic outlook and supply chain dynamics play a crucial role in the slower-than-expected rebound of Honeywell's short-cycle businesses. As the economy recovers, demand for short-cycle products and services is expected to improve, driving a rebound in profitability. Honeywell is also working to improve short-cycle business performance through strategic initiatives aimed at enhancing operational efficiency and customer satisfaction.
Honeywell's second-quarter sales and earnings beat expectations, driven by a 5% increase in overall sales to $9.58 billion. However, the company's industrial automation segment reported an 8% decline in organic sales, which contributed to the downward revision in the annual profit forecast. Honeywell now expects an adjusted profit of $10.05 to $10.25 per share, down from its previous guidance of between $10.15 and $10.45 per share.
To mitigate the impact of short-cycle businesses on its earnings outlook, Honeywell is focusing on its aerospace and other long-cycle businesses. The company's aerospace unit, which makes parts for Boeing and Airbus, contributed to the overall sales growth. Honeywell is also executing on CEO Vimal Kapur's vision of better aligning the overall business to the megatrends of automation, the future of aviation, and energy transition.
In the long term, recent acquisitions such as CAES Systems and Air Products' LNG business are expected to contribute to Honeywell's earnings growth. These acquisitions will help diversify the company's revenue streams and reduce its reliance on short-cycle businesses. However, the impact of these acquisitions on Honeywell's short-cycle businesses and overall earnings remains to be seen.
The current economic outlook and supply chain dynamics play a crucial role in the slower-than-expected rebound of Honeywell's short-cycle businesses. As the economy recovers, demand for short-cycle products and services is expected to improve, driving a rebound in profitability. Honeywell is also working to improve short-cycle business performance through strategic initiatives aimed at enhancing operational efficiency and customer satisfaction.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
Harold Kendrick I truly appreciate your guidance in trading. Your belief in me has pushed me to work harder in Bitcoin trading and achieve more than I ever thought possible. Thank you for being such an incredible mentor. Contact him on WhatsApp +447407600166
Catherine E. Russell is a beacon of innovation and positivity in the world of cryptocurrency and investments. Her dedication to building a transformative Bitcoin and crypto platform has touched the lives of people around the globe. Catherine passion for empowering individuals to navigate the exciting world of digital assets is truly inspiring. Through her platform, she is creating opportunities, spreading knowledge, and fostering a community of like-minded individuals all striving for financial empowerment. Catherine vision and drive are shaping the future of finance, and her impact is felt far and wide. Let's celebrate Catherine E. Russell for her incredible work and commitment to making the world of cryptocurrency accessible to all.Massage✍️ On FACEBOOK Catherine E. Russell .. It is important to be informed an make informed decisions
"Attention all investors! 🚀 Now's the perfect moment to jump into Bitcoin trading! With Bitcoin gearing up for a major upswing, buying now could lead to significant gains. Don't miss out! And if you're new to the game and need guidance, connect with BRENDA W. JEFFREY on Facebook. She's a trusted resource for mastering the fundamentals of cryptocurrency trading. Happy investing!"
Don't invest blindly in stocks or crypto when you do not have a proper guide. I lost 30k trying to trade on my own but ever since Mrs Susan J Demirors stepped in, I have been making huge profits. I made over 450k since October. She is always available to tell you more about investing and give a guide on how to trade visit her on Email susandemorirs@gmail.com and her WhatsApp +1 (472) 218-4301
if you need to recover your lost media accounts contact cybergoldenhacker at gmail dot com he's very good into ethical hacking
I made over 150k here with an expert’s help and recommendation 🤗
She’s great connect 🇺🇸+.𝟣𝟧𝟨𝟥𝟤𝟩𝟫𝟪𝟦𝟪𝟩
Investing in crypto stands to be the best decision I've ever made in my Life. With the help of a trustworthy broker.
I earn huge profits weekly despite the fluctuation of the market..
you can reach out to +.1563.279-8487👍
To everyone complaining why he doesn't live lavishly that's because it's a part of his investment ideology. You can buy a sports car for $ 100,000, but that will just depreciate over time and get you basically nothing close to the original amount. Use that $ 100,000 to invest and you can double, triple, quatriple it. Then you have $ 300,000 you can again use it to buy some crap that will eventually be worth nada, or convert it to a few million. You don't get rich by throwing money away...inbox Catherine E. Russel on Facebook page she will help you manage your trade and guide you true the process..To everyone complaining why he doesn't live lavishly that's because it's a part of his investment ideology. You can buy a sports car for $ 100,000, but that will just depreciate over time and get you basically nothing close to the original amount. Use that $ 100,000 to invest and you can double, triple, quatriple it. Then you have $ 300,000 you can again use it to buy some crap that will eventually be worth nada, or convert it to a few million. You don't get rich by throwing money away...inbox Catherine E. Russel on Facebook page she will help you manage your trade and guide you true the process..
When I first considered online investments, I felt overwhelmed and uncertain. However, my friend’s guidance towards Diana Goulding platform provided the clarity I needed. Investing $1,500 was my first step toward empowerment. The immediate returns boosted my confidence and motivated me to learn more about the investment landscape. Today, earning over $50,000 feels like not just a financial success but a personal victory. Knowledge is power, and through platforms like ⚡ Diana Goulding ⚡, anyone can embark on their own financial journey with confidence. WhatsApp ✙𝟏 (𝟐𝟐𝟑)𝟐𝟖𝟑𝟕𝟑𝟔𝟖..