Honeywell International Inc on Friday became the latest aerospace supplier to withdraw its full-year outlook on weak demand as the aviation industry struggles with COVID-19 led lockdowns.
The rapidly spiraling pandemic has caused lockdowns in several parts of the world, forcing airlines to ground fleets and jet manufacturers to announce production cuts.
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That has thrown the global aerospace supply chain into a disarray adding to the billions of dollars in losses for the parts suppliers, who were already struggling with the grounding of Boeing’s 737 MAX plane.
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The company said it expects ongoing top-line challenges due to the current market conditions, particularly in the aerospace and oil and gas sectors.
Honeywell, which makes everything from aircraft engines to warehouse automation equipment, said sales in its aerospace unit, its biggest, rose marginally to $3.36 bln in the first quarter.
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The company also has a significant exposure to the oil and gas markets and a recent plunge in oil prices hurt sales in its performance materials and technologies business, which makes catalysts and adsorbents used in the production of gasoline and jet fuel.
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Sales in the unit fell about 7% to $2.40 billion.
Net income attributable to Honeywell rose to $1.58 billion, or $2.21 per share, in the quarter ended March 31, from $1.42 billion, or $1.92 per share, a year earlier.
Revenue fell 4.7% to $8.46 billion.
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