Honeywell Inc. (HONO) – Get report It posted stronger-than-expected earnings in the second quarter on Friday, but noted a significant drop in aerospace sales related to Boeing’s 737 MAX delays and weak demand for commercial aircraft.
Honeywell said adjusted earnings for the three months ending June were set at $ 1.26 a share, 40% less than the same period last year, but 5 cents ahead of the Street consensus forecast. The group’s revenue, Honeywell said, fell 19.1% to $ 7.477 billion, just above analyst estimates.
Aerospace sales fell 27.5% to $ 2.54 billion, Honeywell said, due to lower demand for commercial aircraft amid the peak of travel restrictions during the coronavirus pandemic and the broader impact of the delay in return to service from Boeing Co. (licensed in letters) – Get report 737 MAX. The group added that third quarter aerospace sales are likely to drop 25% compared to last year.
“The second quarter was challenging, but we executed the three things that will enable us to cope with this recession: aggressively manage costs, drive sales growth where demand is strong, and invest in exciting new technologies that, through careful customer service and end-user needs will help keep people safe when they return to the workplace, play again, travel again, and come back to life, “said CEO Darius Adamczyk.
“Our focus on sales, cost, and working capital optimization, combined with our diverse portfolio and strong balance sheet, will allow Honeywell to adapt and execute during the recession. I am confident that we will be well positioned for economic recovery in the future .
Honeywell shares fell 2.22% to $ 150.32 in Friday’s trade. The stock has dropped approximately 14% to date.
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