Honeywell Cuts Sales, Profit Outlook After Bombardier Deal | Global News Avenue

Honeywell International (Medal of Honor) the group lowered its full-year sales and profit forecasts after forming an aerospace technology partnership with Canada’s Bombardier.

Honeywell shares fell 2% in premarket trading.

The company said the investment required to partner with the Canadian aircraft manufacturer would affect its prospects, and again The company lowered its guidance in October due to lower demand for its industrial automation products.

Honeywell now expects revenue in the range of $38.2 billion to $38.4 billion, adjusted Earnings per share (EPS) Between $9.68 and $9.78. The company had forecast revenue between $38.6 billion and $38.8 billion, with adjusted earnings per share between $10.15 and $10.25.

Honeywell deal brings total revenue of up to $17B

Honeywell said its agreement to provide advanced technology to Bombardier has revenue potential of up to $17 billion over the life of the agreement.

“Our development of a long-term relationship with Bombardier is directly related to Honeywell’s focus on compelling megatrends: automation, the future of aviation and the energy transition.” Chief Executive Officer (CEO) Vimal Kapoor said.

Honeywell shares have hit all time high Last month, Elliott Investment Management said it had taken a position in the conglomerate worth more than $5 billion and was seeking to spin off the company. As of Monday’s close, the company’s shares were up nearly 10% this year.