Honeywell CEO says suspending business in Russia won’t be a major headwind

Business

Honeywell‘s decision to halt business activities in Russia following the country’s invasion of Ukraine is unlikely to cause problems for the company’s balance sheet, CEO Darius Adamczyk told CNBC on Monday.

“It has some implications, but it’s the right thing to do, it’s a little bit north of 1% of our overall shares, and our manufacturing presence there is relatively small,” Adamczyk said in an interview on “Mad Money.”

“We’ll see what happens. We’re monitoring the situation,” he added.

The technology firm is one of hundreds of companies that have stopped or curtailed operations in Russia including Adidas, McDonald’s and Apple. The company announced its decision to “substantially” suspend its activities on March 8.

As for the company’s other possible headwinds, Adamczyk said that Honeywell’s supply chain and raw material costs have been manageable. Honeywell’s fourth quarter revenue fell short of expectations last month due to supply chain issues, among other factors. 

“We’ve actually done a good job of protecting that business. Titanium is something we watch very closely and some of the components there, but we’ve been a little bit ahead of the game and secured sources of supply, so we’re in pretty good shape there.”

Honeywell stock was up 0.53% at the end of Monday’s trading session.

When asked about future plans, Adamczyk said that the company plans to buy $4 billion worth of shares, which he considers to currently be a “bargain,” and look toward making acquisitions.

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