The coronavirus pandemic led to shelter-in-place policies and practically shut down business activity. That particularly hurt the industrial businesses of Honeywell International (HON). Consumer spending declined and global travel demand fell hard, leading to a global recession. U.S. Q2 GDP fell over 30%. In Q2 Honeywell reported revenue of $7.5 billion, down 19% Y/Y. Each of the company’s key product segments experienced declines.
Aerospace revenue fell 28% Y/Y as global travel demand was in free fall. Within the Aerospace segment, commercial aviation and aftermarket sales fell 39% and 54%, respectively. Defense and space revenue actually grew 7%. Global passenger demand fell over 90% shortly after the pandemic materialized. Moody’s does not expect passenger demand to recover to pre-pandemic levels for a few years. This will likely create more headwinds for Aerospace, which was 34% of total revenue, down from 38% in the year-earlier period.
Each of the company’s