(Reuters) -Honeywell International Inc reported lower-than-expected quarterly sales on Thursday, hit by supply chain challenges at its aerospace segment and a fall in demand for masks.
The company, whose shares fell 2.7% before the bell, reported a decline in sales in three out of its four segments, with its Safety and Productivity Solutions unit — that makes masks — seeing a 10% slide in the fourth quarter.
Honeywell expects lower demand for masks this year, mirroring what rival 3M Co said last week, although the latter had said near-term demand for its N95 respirators had picked up.
Sales at Honeywell’s high-margin aerospace segment, which makes parts for planes produced by Boeing Co and Airbus SE, also fell 3% as raw material and parts shortages hit sales.
Supply chain problems, along with inflationary pressures, hit Honeywell’s earnings last year and analysts have been lowering their sales expectations for the quarter over the last two months. The company’s sales still missed expectations.
Total sales for the fourth quarter slid 2% to $8.66 billion, compared with analysts’ expectations of $8.73 billion, according to Refinitiv data.
Price increases to combat inflation helped Honeywell post a rise in profit. Its net income rose 5% to $1.43 billion, or $2.05 per share, in the quarter ended Dec. 31, from $1.36 billion or $1.91 per share a year earlier.
Excluding items, Honeywell earned $2.09 for the fourth quarter, beating expectations by one cent.
The company forecast 2022 sales of $35.4 billion to $36.4 billion, lower than analyst estimate of $36.76 billion.
(Reporting by Shivansh Tiwary and Aishwarya Nair in Bengaluru; editing by Uttaresh.V)