Honeywell on Monday cut its profit and sales forecasts for the fourth quarter and the full year to take into account investments associated with an agreement to provide aviation-related technology for Bombardier's aircraft.

Shares of Honeywell International Inc. fell in extended trading Monday after the conglomerate cut its outlook for the months ahead, citing the costs of investing in a new tech-focused collaboration with jet maker Bombardier announced earlier in the day.

Honeywell has signed what it calls a “landmark agreement” with Bombardier, which includes co-development of new technology in avionics, next-generation HTF7000 engines and satellite communications for current and future Bombardier aircraft. The agreement provides Honeywell with an estimated value...

KEY TAKEAWAYS Honeywell International cut its full-year sales and earnings outlook following an aviation technology partnership the conglomerate struck with Canada's Bombardier.Honeywell said that required investments of its tie-up with the Canadian aircraft maker will affect its results and lowered its guidance for the second time since October.