Industrial conglomerate Honeywell International’s third-quarter adjusted earnings jumped nearly 30% from the same period last year, but the company was forced to cut its 2021 guidance.
Apparently that didn’t please the market. Honeywell’s stock tumbled more than 2.5% to $219 (£159.11) in early afternoon trading Friday.
Overall, revenue rose 8.7% to 8.47bn, just shy of Wall Street’s estimate of $8.5bn (£6bn), according to the company.
Adjusted Q3 earnings paid $2.02 per share, up 29.5% from the same quarter 2020 and 2 cents above the forecast price.
The Charlotte, North Carolina-based company downed its annual revenues estimated to be between $34.2bn and $34.6bn, down from its prior forecast of $34.6bn to $35.2bn.
The cutting was the result of the global supply chain crisis causing a shortage of parts and components. Port closures due to increased Covid-19 cases in Asia and labour shortages strangling the worldwide supply chains led to price increases.
Cuts to aerospace
These issues forced the company’s largest segment, aerospace, to cut production.
“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," said CEO Darius Adamczyk. "Our disciplined approach to productivity and (prices) helped deliver a strong third quarter despite an uncertain global environment marked by supply chain constraints, increasing raw material inflation, and labour market challenges."
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