Thank you, morning everyone. good and Luca,
Let me begin Motion with Technologies.
continues by XXXX points to growth organic win in on further QX primarily of in global business. MT We the of the basis was XX% evidence marketplace. a XXX that performance in OE driven strong Our machine basis; outperformance delivered our Friction
fund and up in sales and we XX%, the Asia-Pacific in North points XXX sales both mainly For in as growth to margins on by America up driven were shims incredibly share Wolverine sealings. again to business that strong growth quarter, was margins incremental Europe and expanding were productivity allowed while This market XX% our over volume XX%. XX% in gained higher basis and brake was investments. with Friction us continue in of China, strength Segment
We into are the in with we and the strength head as XXXX. very pleased pace MT recovery the of
declines with previous our For impacts sales as we quarters' Industrial bookings. anticipated, affected down, short-cycle in were that due Process, to pandemic-related two
in pump our most IP, bookings which gas large saw Our continued projects in exposure shift project as oil to right. to declines encompasses the and business, of
driven inventory less rationalization quarter percent percent of a our of capital finished IP's thanks XX% XX in orders short-cycle price. with further to quarter margins. points year offset long-term we headway and a sales. impact aftermarket by capital in decremental consolidate we performance, planning. by our basis of we benefits, Luca strategy. entirely significant IP our to Furthermore, However, XXX versus The footprint materials productivity as and decline up opportunities supplier sales on points sales X%, the working demand. the purchasing make were X% as margins mentioned, Also, was improved still expanded prior as restructuring as the to optimize continue savings almost working basis and enhance see than IP
Lastly, major over markets. sequentially Sales build and in second defense we we lower the in weak to aerospace in Technologies, continued Control passenger across and levels. declined airframers. driven traffic minimal by end from and quarters and down were quarter in the to fourth aerospace see Connect The in all third saw de-bookings rates lower demand XX%,
weakness We sales the saw to quarter Connected over a On expect America lower the by than we offset impacted defense volumes, connectors. this half orders XXXX. QX. note, contributed will North into persist the industrial due defense. positive of by by cost down encouraged margins aerospace to mainly and are partially in XX%, commercial in sales that and aerospace plan. in were likely we an recovery were book-to-bill in of mostly CCT reduction aggressive a more X first These
was on performance look to to margin points this deeper want CCT, a I highlight and XXX year points. which this are the was main X over this While now challenging Slide we for am by encouraged quarter full basis year. productivity, the the two at present quarter. I
we productivity First, points. generated of XXX basis
points. the enterprise year, result and segments reduce moving This to over driving was three number multi-year at basis of a ITT XXX all full For by across that leaner in corporate. structure approach cost the a excellence is the ITT's and operational towards
this stages Process. time in Motion have of we what we're similar we Industrial early experienced and playbook journey We Technologies at the to are and CCT, Motion we over the the in still Technologies. successfully At results foundation executed laying with expect
on key second The is takeaway strategic investments.
to the come at to necessary through not pandemic, of made expense these While cuts year we investments. did discretionary expense growth the this manage
in We win our as initiatives launch copper-free to promising continued to several to EVs selectively fund continue with the we most brake years pads globally, of we growth the marketplace in key in did markets, including ensure back. successful
to Let's X cost XXXX review results. to the turn action Slide
savings, remainder million discretionary of fixed approximately comprising year, of full and achieved and $XX the delivered excess the full quarter. a temporary from million reverse in with year, we $XXX fourth in reduced XXXX. For including came headcount We actions. million, Executive reduction combination structural the This will cost for which savings in costs in reductions, of compensation the cost $XX reduction Board partially
continuing to and at cost IP CCT, footprint remaining are diligent sourcing strong control drive and with both We while performance. accelerated optimization
the of that actions in to will of savings expect in $XX impact XXXX XXXX. million generate We approximately million additional $XX carryover
We productivity execute cost reduction addition also generate. to rationalization plans will new and expect to normal we footprint the and in fund
since among quarter finished end QX businesses. our optimized from and strong lower year the in our vary based these to Keep target, In and our of we margins the this improved XX% our QX. mind, of the mix volumes performance at at the on north recover performance as expect measures, and quarter cost result our margins in in quarter XXXX, we every a given XXXX quarterly decremental incremental As we XX% leverage of structure. will
Let's discuss to XXXX turn our Slide X guidance. to
with the gradual half full the Our see pandemic, of disruption somewhat year are we showing outlook this particularly to uncertain We COVID manage signs throughout to costs markets end ongoing the the second economic of and general remain coincide intend from time. in the XXXX, the to continuing expected improve Still, recovery. Despite remains our conditions economic recovery. year. at flexible
We expect likely X% to organic recover. an traffic and X% we air share relatively the inventory as of be offset as gains will continues sales and project as get XXXX in total XXXX. growth on from constrained versus we remains strong commercial convert to XXXX half in to in end OpEx aerospace, in begins organic continued X% towards revenue to declines X% to weak. we Technologies up be in Friction, XXXX fourth normalize of resurgence by will activity see auto, large and Notably, up the of The XXXX order be stemming basis. In pumps in Motion industrial be the will Defense activity to customer the passenger and revenue into back levels will year levels. the recover, stable slowly quarter last second won in should starting expect
and in activity expect Finally, we from gas, modest improvement. growth oil downstream
be a will impacted downturn. rate growth as of the project in by market lower XXXX However, bookings the result
expect We see growth the in in and particular. Middle Asia-Pacific stronger East to
This XX%. expect expand and from volumes, We guiding deliver structural segment per working should We're repurchases is tax count in $XXX from basis rate cash to will top-line adjusted we to spending, share green to range adjusted investments growth $X All in average lower X% capital the share reductions year increase be expect support incremental margin cash dollars million XX%. free including XXXX. a increase expect points effective X% growth. by an expansion. projects midpoint, into margins weighted our an triple-digit full million segments and to million higher This the approximate $XX a to to to we $XXX XXXX of reduction productivity to earnings driven CapEx than margin and as benefits XX% flow million to of structure and assumes in of flow of in continued cost our XX.X%. be delivered at the XX% by Free XXX to
by of However, approximately as walk Slide part these we term. optimization. we our share At investments and offset a free due of to volume XXXX. of in generated our and percent headwind the show earnings On savings decline working higher a stronger reversal Act benefits continuously flow savings majority a the working growth. The earnings to for in capital to the by aided per costs, earnings levels, over CARES long partially incremental temporary productivity, growth cost will capital expense be will and XXX% expect be travel cost temporary reversal the adjusted by The of sales XX of combination cash XXXX become to net adjusted guidance. a will is conversion that compensation
is with to earnings to XXXX positively rate is be the tax basis exchange to XX.X% slightly a XX% mean, on of depending of than expected Foreign and our at contribute variance - jurisdictional income. the around points XX higher expected mix
EPS Our planning headwind. rate implies a $X.XX currently
highlighted, in $XX generate a will repurchase Lastly, $X.XX to to shares, $X.XX ITT as $XXX which tailwind. we million to a expect Luca million
we we wrap in Before up, XXXX seeing Year-to-date, thus we expect the details what to are first additional on quarter. I far are also on some in track. we want share and what
and in Process, will on revenue gas oil continued soft assumes In Industrial outlook declines to offset the organic and near-term, quarter sales Technologies, first in continue both XXXX Industrial Motion bookings segments. and Process particularly chemical mid-to-high-teens Control. in Our weigh Connect and double-digit by growth
Our will operating ending tight lower due and expense decline business customers backlog. to controls short-cycle maintaining
QX. the and order in last given unaffected lower after growth will be XXXX. be MT the in strong volumes will the expect improve XXXX. the still driven which In margin connectors, driven higher sequentially we and by weak in aero pandemic. order will partially by be in CCT's largely QX, CCT, by beginning progress, XX% of sequential than and grow The the actions demand. the offset growth by expansion was margin executed over will in that half will Despite IP, the backlog cost IP second second given short-cycle commercial This declines be quarter then However,
of While to ITT's in versus to ability our end will of execute a markets, per the there growth generate and share confident amount in which earnings adjusted fair of prior competition, we're QX year. remains some mid-to-high-single-digits outperform uncertainty continue likely
to Let me remarks. for closing pass back it Luca
