Smart building tech and service company Honeywell posted revenues of $1.3 billion in its building technologies business segment in the third quarter of the year, down 8% compared to revenues of $1.41 billion in the year-ago period.
The building technologies segment generated profits of $282 million in the period, down 5% year-on-year.
The company said that lower sales in the segment were driven by lower demand for building products and delays in Building Solutions projects, partially offset by growth in the services verticals.
“In Honeywell Building Technologies, sales were down 8% organically, a significant improvement from the 17% organic decline in the second quarter. The third quarter decline was primarily driven by lower demand for building management systems, security and electrical products, and softness in building solutions due to delays in projects and energy businesses, some of which was a result of resource mobility constraints particularly in India and the Middle East. However, organic sales in all Honeywell Building Technologies businesses improved sequentially from the second quarter, creating positive momentum into Q4,” Greg Lewis, Honeywell’s CFO recently said during a conference call with investors.
“Orders for the business solutions projects and energy businesses both grew double digits organically in the third quarter. Additionally, the building solutions service backlog was up double digits year over year, driven by larger orders in the Middle East and Asia.”
“We are experiencing significant customer momentum with our portfolio of healthy building solutions. Our sales pipeline is over $600 million and we have secured orders around the world from Charlotte to Singapore,” the executive said.
Honeywell’s CEO Darius Adamcyk highlighted the recent partnership signed with Microsoft to target the industrial workplace.”We announced a new partnership between Honeywell and Microsoft that will reshape the industrial workplace. Honeywell Forge will integrate with Microsoft Dynamics’ field service to provide cloud-based predictive solutions to building owners and operators through closed loop maintenance workflows, strengthening business continuity and improving operational efficiency.”
“Moving forward, we are exploring more ways to bring innovation to customers by integrating Honeywell Forge solutions with Microsoft Azure services, such as Azure Digital Twin or Azure Edge capabilities,” Adamcyk said.
The two companies said that the first area of focus will be in automating maintenance for building owners and operators.