Honeywell cuts sales forecast for this year

Honeywell International, parent company of Intermec Technologies in Cedar Rapids, has cut its full-year sales forecast and reported lower-than-expected quarterly revenue as sales in its aerospace division unexpectedly declined.

Honeywell lowered its sales forecast for this year from $40.9 billion to $40.6 billion - slightly short of analysts average estimate of $40.64 billion, according to Thomson Reuters I/B/E/S.

The company's revenue rose 2.2 percent to nearly $10 billion in the second quarter ended June 30, falling shy of analysts' estimates of $10.13 billion.

Sales in Honeywell's aerospace business, its second-biggest division by revenue contribution, fell 1 percent to $3.78 billion, while the company had issued a sales forecast range of flat to up 1 percent.

The company said business was hurt by delays and completion issues in certain programs as well as higher incentives paid to commercial aircraft makers to select its aircraft equipment.

Revenue in the performance materials and technologies fell 3 percent to $2.33 billion, because of weak demand from oil and gas customers.

The business, which makes catalysts and absorbants used for petroleum refining, contributed 23 percent of total sales.

The bright spot was the automation and control solutions business, where sales rose 9 percent to $3.89 billion, helped by acquisitions. The division contributed 39 percent of revenue, while the aerospace business accounted for 38 percent.

Honeywell said it would realign the automation and control business - which makes industrial safety products and controls and displays for heating and cooling systems - into two new divisions: home and building technologies and safety and productivity solutions.

Net income attributable to Honeywell rose 7.4 percent to $1.28 billion, or $1.66 per share, in the second quarter, beating analysts' estimates of $1.64 per share.

Honeywell bumped up the bottom end of its full-year earnings forecast to $6.60 per share from $6.55. It kept the top end at $6.70 per share.

Analysts on average were expecting 2016 earnings of $6.66.