The Honeywell International sign sits outside of the company’s former global headquarters in Morristown, New Jersey, on Friday, Jan. 26, 2007. (Photo by Daniel Barry/Bloomberg via Getty Images)
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Diversified manufacturer Honeywell International fell short of Wall Street estimates for quarterly revenue on Thursday and cut its full-year sales forecast, as its customers rein in spending amid a slowing global economy.
Honeywell’s diverse set of businesses, which range from warehouse automation equipment to catalysts used in gasoline production, are closely linked with the health of the global economy.
The prolonged trade war between the United States and China and the possibility of Britain exiting the European Union without a new agreement in place have weighed heavily on business confidence and resulted in sluggish capital spending.
Honeywell cut the top end of its full-year sales forecast to $36.9 billion, while retaining the lower end at $36.7 billion, sending its shares down about 1% in premarket trading.
The company raised the lower end of its 2019 earnings per share forecast by 15 cents to $8.10, while reaffirming the higher end at $8.15.
Net income attributable to Honeywell fell to $1.62 billion, or $2.23 per share, in the third quarter ended Sept. 30, from $2.34 billion, or $3.11 per share, a year earlier.
On an adjusted basis, Honeywell earned $2.08 per share, beating analysts’ average estimate of $2.01, according to IBES data from Refinitiv. Revenue fell 15.6% to $9.09 billion and missed expectation of $9.11 billion.