Honeywell gets stung
Industrial conglomerate Honeywell skidded 7.5 percent Friday to a seven-month low after cutting its profit forecast.
Honeywell said shipments to businesses and aviation equipment makers are down, and delays are hurting businesses that serve the military and space industries.
Honeywell also blamed the lower forecasts on a series of acquisitions, business sales and separations, and new accounting rules it is adopting.
The result made for a complicated announcement, and Morgan Stanley analyst Nigel Coe called it “one of the messiest and most confusing pre-releases that we have ever seen.” Coe said that after disappointing results earlier this year, investors are having trouble trusting Honeywell’s management.
Friday’s drop was Honeywell’s largest single-day loss since late 2011. The profit warning helped drag down the shares of companies in related industries including helicopter maker Textron and defense contractor Rockwell Collins.