Honeywell downgrades FY guidance amid supply issues
By Michele Maatouk
Date: Friday 22 Oct 2021
(Sharecast News) - Honeywell reported third-quarter earnings at the high end of its guidance range on Friday but downgraded its full-year guidance due to supply chain issues.
The company said net income rose to $1.26bn in the third quarter from $758m in the same period a year ago. Adjusted earnings per share were 29% higher on the year at $2.02, coming in at the high end of its guidance range.
Sales for the third quarter increased to $8.47bn from $7.79bn the year before.
However, Honeywell said it was downgrading its guidance for the full year to "to reflect the persistent effects of the macro-challenged environment as well as the third-quarter results".
Full-year sales are now expected to be between $34.2bn and $34.6bn, down from a previous range of $34.6bn to $35.2bn, with organic sales growth seen in the range of 4% to 5% "due to supply chain constraints".
Honeywell also narrowed its forecast for adjusted earnings per share to between $8.00 and $8.10 from $7.05 to $8.10.
Chairman and chief executive Darius Adamczyk said: "The third quarter was another strong one for Honeywell, with sales growth in all four segments, significant margin expansion, and exceptional execution even as we faced tough challenges in the supply chain environment.
"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 labour market challenges. We continue to focus on mitigating these challenges in the fourth quarter, while capitalising on near-term growth opportunities across our portfolio."
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