Jeremy. all morning and safe Thank you You are Good everyone. and families your hope I healthy.
We have three key morning. messages this
first employees. call formed been safety X. global we're outbreak We our implement and response and our earnings the on including pandemic monitoring operations. the and to COVID-XX significant in our has our First, of protocols Then time team at fully and health safety throughout early February of closely now our our effectively acted response last priority already new the January our team
on have continue to our business customers. delivering value We we to all of focused ensure also continuity
our leadership and to supply point. employees not our thank have my for their operating sites and the by pandemic adaptability, global materially team commitment all publicly operations this I manufacturing been want discipline. affected exceptional manufacturing creativity, and of are Our chain at X,XXX and
difference and employees to significant around You've customers your made the to our and customers fellow a world. their
Second, year. of the we've this we economic taken pandemic flow generate the and ensure free mitigate strong cash to decisive to effects actions
are flow always economic response As cash guide to using decisions. our we
million We capital $XX improving in $XX spending million lowering $XX are operating by million million $XX to capital million. costs to $XX by $XX working by reducing million to
As term the third, said, And has balancing and immediate will carefully we long actions Bill we with nimble if short remain take are the additional term. necessary.
attention does on significant have initiatives. our our our So value The of plan. focus the strategy long growth our required response maintained our term pandemic growth strategic we pandemic has not change or
relationships the the capabilities fact, made new them. long-term years customers several deliver and In with our strengthen significant investments our to gave to value last we've over us
and costs. we're review to Please demand important demand slide I QX. Slide working turn be how near-term for X our Understanding wanted assessing our to know a busy capital I'll is operations, I assessing managing demand transparent but and how this effectively segments. critically we're in three in to is
orders our in hard in customer industry this and experience to will are and technologies government prior triangulating are stay-at-home We inventory be downturn information, In levels QX. while economic especially data, hit plan downturns in demand refining effect. own
products reductions XX% for in refined far QX stabilizes. In so have before crude demand and expect by April, customers we about refinery runs reduced further
Historically, prices our Many lower lead lower transportation would this also in the and significantly that for be prices from Mackenzie in crude and affected Wood by will refinery crude significant than it demand oil fuels. XXXX-XXXX. demand refined of was indicate drop fuel to the are customers Estimates product drop IHS more in greater year prices.
temporary delivering is is customers. on innovative in QX. pandemic not services our orders strategy. pricing our demand stay-at-home products and does improved long-term We include to to market the improved We our and response committed and and in demand that pricing plans and This change QX focused refining the technical not remain Given decline maintaining occurring. share business global significant our
In capacity. our results following IMO this our venture the in ART order startup due new first-half the ART's processing for joint and to we are our year. be of the plans weighted year of to and implementation XXXX original to expect the hydro with line catalyst sales half earnings timing second
down also in applications In applications QX. be will in in see We significantly. durable and specialty like demand non-durable significantly lower and items down catalyst polyolefin demand more packaging induced catalysts consumer
resin changes. demand good We levels and monitoring are inventory as future catalyst carefully indicators of
We volumes to seen have production in increase reduce resin some have indicating rebalance will inventories to customers recently inventories. some
For customer to improve catalysts, inventories cash a security customers inventories supply while reducing building customers inventories QX. reduction in catalyst are are their improve of we other Overall, some net flow. in to expect
announce to two this UNIPOL signed year. process We in them QX licenses new and later expect polypropylene
process. demand will consumer induce be applications in another in quarter. and to future but in expect offset than see are in licensing categories remains good pharma significant experience pipeline the their technologies more demand licensing we continuing this applications by lower decrease QX Materials Customers for a also Our durable we increases in non-durable strong will coatings and In invest growth. year. significant some chemical
demand. the correction Accordingly inventory inventory end some market line to as but XXXX-XXXX. QX level we in Overall, same saw MT in we see not expect levels customer with are in at
diagnostic specialty that therapies. COVID-XX and a be proud to in we're As silicas used supplying are test kits highlight
points about Although of applications of XXX overall to growth the part these to this in a small pharma business year. our sales segment are consumer basis expected add
uncertainty for to XX% Slide demand last I'll to segment response the macro-environment. to on demand Based planning down and year. to from our QX and managing lower in summarize we XX% X our how assessments, are turn sales we're be Please Grace's
to We $XX don't that given plans. capacity intended million plans, debottleneck $XX million plans near-term sourcing create In set demand originally production response, add cost or capital deferring value assumption this to our current lowering projects by levels. are operations using spending and we're our to reduction
We as mid-year planned. larger them start expect up our capacity three by are additions all completing safely and to
or maintenance have capital. not reduced We EHS
volumes For operations our is by less achieve maximize ensure This reducing are $XX to reduce and of costs we've further working million. ensure aligned and with targets. than levers we cash million inventories capital flow stay our to If to planned is our aggressively to one best will production inventory volumes improve $XX we demand we demand. production
our to year. by in In functional addition and million costs we're $XX this $XX reducing manufacturing commercial, operations million
this reduction positions will manufacturing by beginning Some quarter. actions furloughs or other cost be affected
our be Our gross by the affected margins will pandemic. response to
plan this offset be by production lower effects negative improvements they year to continue we and mix inventory and will the While pricing of levels.
continue expected In QX reduced while to basis decline absorption. XXX production we cost volumes levels. point fixed at are XXX This lower will from
that In less another reduced expect costs inventory we fixed XXX in inventory. now as previously addition XXX inventory basis to points we QX will hit With in included in decrease margins were gross earnings.
demand inventory We completes. margins increases and our to expect gross as adjustment recover
these. uncertainty decision-making cash especially in in environment quickly inventory as to macro deliberate is the the using the surest is metric primary we're financial Most discipline our strategies three using conditions and like metric. operating ensure our important is Cash Given in heightened times change. always especially we adjust
retesting demand testing Second, we assumptions. tenaciously are and
experience. triangulating our We deliberate with have customers, about demand industry estimates been our own data and
seen important end goals. of signal and are XX% carefully monitoring sales future market customer to faster We've decrease an levels since volumes March achieve and reducing inventory as also a our changes. we end production of demand We're in the even inventory
immediate and will actions remain nimble necessary. additional take if We
priority. high a flexibility made we've Last
We costs want we've when be than we While to not quickly quickly jeopardize reduced to respond we've growth slow be to recovery in to to want able able respond to our planned capture we if production is further changes been ability demand. begins. and demand opportunities the careful to to lower
Please turn to Slide X.
growth significant our our these initiatives, in a last made seeing commented tremendous or our It foundation long-term competitive not delay from our initiatives. of the with pandemic our The growth but we're strengthening extending other does progress our cases value we've cases I profitable in for benefit investments. As may some strategy advantages. strategic quarter long-term change and payback significantly
to to and XX,XXX For example, excellence in last global us capabilities the value in a selling million have investments training. We selling and and our hours commercial including intensive remotely customers. effective implementation salesforce.com our more $X years over employee upgrade few commercial made invested negotiations
our with our up to and facing customers our changes to even an technical unit. refining to a with one businesses. sales They've a remotely businesses added Using unit technology catalyst support opportunities training customers provide hydrocracking technology team in remote and to deployed we've pipeline day materials ideation account In XXX new team technology sales the in specialty catalysts QX. tools workshop virtual two of biggest using and their are almost their sales significant start an completed FCC worked customers
three startup disruption the new schedules In despite plants maintaining are operations our we our the of for pandemic.
ways qualify pandemic us through to work Our letting startup and Clearly customers down. teams the are safely creative using procedures, not products startup slow ensure we're success. with new
In our is power the fact and our the businesses. for about recovery. the The to we by well-positioned our to temporary disruption is my change these or intent are not conviction earnings investments of ensure sustain pandemic caused strategic does direction
call the over turn I'll that Bill. With to
