Honeywell Says It Will Make Less Money Than Expected Because of Middle East Fight and Company Changes
Introduction
Honeywell is a big company. It makes things for factories and planes. On Thursday, it told people how much money it thinks it will make in the next three months. It said the number is smaller than what experts thought. The company said problems from the fight between the US, Israel, and Iran caused this. It also said it made less money in the first three months of the year than experts thought. Honeywell is going ahead with its plan to split into three smaller companies.
Main Body
Honeywell said it will make between $9.4 billion and $9.6 billion in the second three months of the year. Experts thought it would make $9.73 billion. The fight in the Middle East made things more expensive. It made the cost of materials and energy go up. It also made it hard to move goods. Last month, Honeywell said some shipments from the Middle East were late. This pushed some money from sales to later months. The fight hurt one part of the company called Process Automation and Technology. In that part, fewer people bought services after they bought machines. Some deliveries took longer. For the first three months of the year, Honeywell made $9.14 billion from sales. This is 2% more than last year. But experts thought it would be $9.31 billion. The company said it raised prices and cut some costs. This helped a little. But the cost of splitting the company and a legal problem with Flexjet made the company's available cash go down by 71%. It had only $56 million left. Profit went down by 35% to $1.29 per share. But if you take away some special costs, profit went up 11% to $2.45 per share. That was more than experts thought ($2.32). Honeywell is splitting into three companies. One will make automation things. One will make plane parts. One will make special materials. On Thursday, it sold its Warehouse and Workflow Solutions business to American Industrial Partners. It will get cash for it. The company now says the split of the plane parts business will happen on June 29, 2026. After the news, Honeywell's shares went down 7.6% before the market opened.
Conclusion
Honeywell has two big problems. One is the fight in the Middle East. The other is changing the company. The fight will make it harder to get money from sales in the near future. But the company's adjusted profit and cost control helped a little. The plan to split into three companies is still on time. The split of the plane parts business will happen in the middle of 2026.