Honeywell pushes back recovery forecast for business-jet

ATLANTA (BestGrowthStock) – Honeywell International Inc’s (HON.N: ) aerospace unit expects business-jet deliveries to expand in 2012, tempering its recovery forecast by a year as companies hold back on orders in an uncertain global economy.

The supplier of cockpit systems and aircraft engines said on Sunday it expects deliveries of 675 to 700 new business jets this year versus 849 in 2009. It forecast 2011 deliveries could also fall below 700.

The outlook, given during a media briefing in Atlanta ahead of the start of the National Business Aviation Association’s annual convention, is a change from last year, when Honeywell predicted 2011 could mark a modest recovery.

The company said “disappointing rates of global economic recovery have forestalled order rates and softened the 2011 outlook.”

The business jet market took a hard landing in 2009, when demand tumbled after five years of annual delivery increases as companies clamped down on spending and tighter credit made purchases difficult. Jet makers cut thousands of jobs as orders slumped.

“2009 was an enormously challenging year, maybe the worst our industry has ever experienced,” Ed Bolen, president and chief executive of the National Business Aviation Association, said after the Honeywell briefing.

While the business jet industry is not seeing tremendous growth right now, “the important thing is we’re not in a free-fall,” Bolen said.

The Honeywell outlook is based on a survey of 1,200 corporate flight departments, including those of plane manufacturers.

(Reporting by Karen Jacobs; Editing by Anshuman Daga)

Honeywell pushes back recovery forecast for business-jet