Honeywell lowers forecasts and focuses on billion-dollar potential with Bombardier

Honeywell has had to lower its forecasts for profit and revenue for the fourth quarter as well as for the entire year. The reason for this is investments related to a new agreement that provides for the delivery of aviation technology for Bombardier's aircraft. The company's shares fell by about two percent in after-hours trading to 226 US dollars. The agreement includes the supply of avionics, propulsion systems, and satellite communication technologies for Bombardier. Honeywell expects that the investments, particularly in research and development, will put pressure on finances in the short term. Nevertheless, the company hopes for a sales potential of up to 17 billion US dollars over the course of the agreement. The sales forecast for the fourth quarter was reduced to 9.8 to 10.0 billion US dollars, from the previously forecasted 10.2 to 10.4 billion US dollars. Adjusted earnings forecasts per share were also reduced from the previous 2.73 to 2.83 US dollars to 2.26 to 2.36 US dollars. Another aspect of the agreement is the settlement of all pending legal disputes between Honeywell and Bombardier. Previously, Bombardier had accused the US corporation of selling propulsion systems to competitors under favorable conditions, although the Canadian aircraft manufacturer was assured of the best prices.