Market MoversOn the Rise Bombardier was up in response to an agreement with Honeywell (HON-Q) for aviation-related technology for its aircraft.
The deal will provide Honeywell’s avionics, propulsion and satellite communication technologies.
Honeywell and Bombardier also said that all pending litigation between the companies has been resolved.
Bombardier had previously alleged Honeywell of selling propulsion systems to its rivals on more favorable terms, despite guarantees that the Canadian planemaker would get the best price.
Honeywell said it expects the agreement to have a near-term impact on its financials, given the investments for research and development. The company added that it estimates revenue potential of up to US$17-billion over the duration of the agreement.
Honeywell lowered its fourth-quarter sales forecast to between US$9.8-billion and US$10.0-billion, from its prior forecast range of US$10.2-billion to $10.4 billion.
It also cut its adjusted earnings per share outlook to between US$2.26 and US$2.36, compare with its previous forecast range of US$2.73 to US$2.83.