(Reuters) – Honeywell International Inc has cut its full year sales forecast due to global supply chain disruptions causing a shortage in parts and components for U.S. industrial conglomerate.

The resurgence in COVID-19 in Asia has led to the closure of ports. This was exacerbated by the rapid-spreading Delta variant. Labor shortages and global supply chains have been strained, as well as a rise in raw material costs.

Honeywell (NASDAQ 🙂 stated that production was being slowed in its largest segment, Aerospace. The company also claimed that a shortage of electronic parts was affecting safety and productivity in its Safety and Productivity Solutions unit. It houses the Automation Equipment business, used by Amazon (NASDAQ :).Com Inc.

Company sales for full year were reduced to between $34.2 and $34.6 Billion, as opposed to its earlier forecast of $34.6 to $35.2 Billion. The reduction was made to reflect the “permanent effects of the macrochallenged environment”.

According to Refinitiv IBES estimates, analysts had on average expected total sales of $35.10 trillion for the full year.

Honeywell also decreased its full year profit forecast range from $7.95 – $8.10 in the past to $8.10 now.

Premarket, shares of the company declined 1.6%. For the entire year, they have grown by almost 6%.

Honeywell, exempting any one-time items earned $2.02/share, exceeding estimates of $1.99/share for the third quarter ending Sept. 30, beating estimates. The increase in business and commercial aviation was a major factor in Honeywell’s success.

The net sales increased by $8.47 billion to $7.80 trillion a year prior, however analysts were not able to estimate the average increase of $8.65 billion.