(Adds details, updates shares)
Oct 6 Aero parts supplier Honeywell
International Inc lowered the upper end of its 2016
sales and profit forecast range, partly due to fewer business
jet and general aviation shipments in its aerospace division.
Honeywell's shares were down 4.5 percent at $110.40 in
extended trading on Thursday.
The company, which makes parts for Bombardier Inc,
Textron Inc and General Dynamics Corp business
jets, said in July that demand would remain weak in the second
half of 2016.
Honeywell had to pay higher incentives to commercial
planemakers in the second quarter to select its equipment. The
company was also hurt by lower demand for helicopters due to
weak energy markets.
The company said on Thursday it also experienced continued
program delays in its defense and space division, part of its
aerospace business, its biggest unit.
Honeywell expects 2016 earnings per share of $6.60-$6.64,
down from its previous forecast of $6.60-$6.70.
Honeywell's core organic sales are now expected to be down
1-2 percent for 2016, compared with a 1 percent decline it had
Honeywell said the revised forecast also reflected the
separation of its automation and control solutions business into
two new reporting segments - home and building technologies and
safety and productivity solutions - and the impact of
acquisitions and divestitures.
The company also said it had recast results for the first
and second quarter to reflect the adoption of new accounting
standards for stock compensation, ahead of the mandatory
effective date in 2017.
The company has recorded tax benefits of 3 cents in the
first quarter and 4 cents in the second quarter.
Honeywell said that benefits from the accounting change and
sale of the Honeywell Technology Solutions government services
business will used to fund restructuring and other charges in
the third quarter.
Up to Thursday's close, Honeywell's stock has risen 12.3
percent this year, compared with a 5.7 percent increase in the
S&P 500 index.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Shounak
Dasgupta and Don Sebastian)