UPDATE 2-Honeywell lowers upper end of 2016 profit forecast

Thu Oct 6, 2016 6:45pm EDT
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Oct 6 (Reuters) - 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 estimated previously.

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.   Continued...