Honeywell International Inc (HON.O) on Thursday lowered its annual profit forecast, due to lower demand in its industrial automation business, sending shares of the diversified industrial firm down 4.5% in premarket trade.
Sales in Honeywell's industrial automation business were hit by volume softness in warehouse and workflow solutions as the company looks to offload existing inventory before ordering new products amid an uncertain economic outlook.
The company also said that sales in its mask-making safety and productivity solutions declined year over year.
The unit's organic sales fell 8% in the second quarter ended June 30, from a year ago.
However, sales from the company's aerospace unit, which makes parts such as engines and navigation radios for planes produced by Boeing Co (BA.N) and Airbus SE (AIR.PA), boosted overall sales by 5% to $9.58 billion.
The Charlotte, North Carolina-based company now expects an annual adjusted profit of $10.05 to $10.25 per share, down from its previous forecast of between $10.15 and $10.45 per share.
On an adjusted basis, quarterly profit came in at $2.49 per share, compared with estimates of $2.42 per share.
