Honeywell projected annual sales below Wall Street expectations and missed quarterly revenue estimates on Thursday as the industrial giant struggles with persistent supply-chain disruptions and weakness in its industrial automation business.

Honeywell’s weak performance in the area of warehouse automation comes as the overall market has struggled to bounce back from a slowdown that began in 2022. Warehouse automation revenues are forecast to dip this year to $30.5 billion from $31.4 billion in 2023 , according to Interact Analysis data shared with CFO Dive in August.

Key Takeaways Honeywell International missed third-quarter revenue estimates Thursday as demand for its industrial automation products declined.Sales at the Industrial Automation division dipped 5%, but they were higher for all other Honeywell units.

Wall Street's three major averages were mixed on Thursday. A post-earnings surge in Tesla (TSLA) propped up the tech-heavy Nasdaq Composite (COMP:IND), but that was countered by a slide in IBM (IBM) and Honeywell (HON) which weighed on the blue-chip Dow (DJI).

The S&P 500 and the Nasdaq rebounded on Thursday, after Tesla's upbeat earnings forecast lifted market sentiment following a selloff in the previous session, kicking off megacap results on a promising note.