Commentary: Honeywell: Paying The Price For Rosy Promises

When Honeywell International Chairman and CEO Michael R. Bonsignore met with irate investors on July 10, he had a lot of explaining to do. On June 19, he had warned them that second-quarter profits would fall short of expectations and that annual profit targets might need to be trimmed as well. Now, he had the answer: For the year, growth would be more like 12% to 14%, not the 20% he once promised. Why? For one thing, rising raw material costs hurt margins, while supplier shortages cut into sales. It was one of those times when it seemed that every break went against Honeywell.

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