(Reuters) - Honeywell ( HON ) 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.

Honeywell's ( HON ) shares fell about 2% to $226 after the bell.

The agreement will provide Honeywell's ( HON ) avionics, propulsion and satellite communication technologies for Bombardier's aircraft.

Honeywell ( HON ) 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 $17 billion over the duration of the agreement.

Honeywell ( HON ) lowered its fourth-quarter sales forecast to between $9.8 billion and $10.0 billion, from its prior forecast range of $10.2 billion to $10.4 billion.

It also cut its adjusted earnings per share outlook to between $2.26 and $2.36, compare with its previous forecast range of $2.73 to $2.83.

Honeywell ( HON ) and Bombardier also said that all pending litigation between the companies has been resolved.

Bombardier had previously alleged Honeywell ( HON ) of selling propulsion systems to its rivals on more favorable terms, despite guarantees that the Canadian planemaker would get the best price.