Honey­well gets stung

Daily Freeman (Kingston, NY) - - BUSINESS -

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.

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