good Thanks, Darius, morning and everyone.
growth grew businesses. organic by in during and as sales Building Process growth Management were the down sequentially, our fourth quarter fourth as Automation, by year-over-year driven quarter, due to comps, as XXXX. they of turnaround quarter, progress contracted in to Products Intelligrated the we but nearly but organic growth of sales productivity continued the product For tough X% progressing. is X%, – expected in SPS well the XX% improved Aerospace, UOP compared
materialized orders well major for anticipated were to project up Intelligrated up in Importantly, XXX% we XXXX. us the as set orders
and Our combined expansion made with enhancements of organic commercial segment basis and segment the operational points, quarter. XX% from portfolio excellence XXXX XXX in with margin we margin that the growth this benefits exceeding drove again
strong favorable end segment the the by which excellence impact points, margins guidance, basis points the driven of Excluding productivity by spinoffs, basis above programs. of XX was our expanded and high XX commercial our
above earnings guidance. XX%, excluding of high end up the spinoff of We share our delivered adjusted the per and the of $X.X, impact
per share lower lower planned buyback rate, our to program, due than count income. In our from offset addition a share performance, and strong segment to pension effective earnings tax adjusted benefited more lower profit which
free of billion XXX% the the conversion we strength During $X.X collections cash on flow and of improvements in inventory quarter, cash of from generated with primarily reductions. working adjusted capital,
our in flow beginning the effects of full demonstrated of high chain free inventory and This year our of to guidance we’re adjusted the end highlighted, as Darius of the XXX% see $X.X by billion range. cash As in conversion supply improvements quarter. transformation resulted fourth above
bringing the million million in the that deployment we to our We reduction, beginning X% resulting year. in repurchases Honeywell count at the repurchase $X.X execute at a above the shares, the total $XXX year highlighted the deployed capital quarter. to dividends billion, is $XXX share for to fourth which of reduction strategy and continue share of of commitment least We to share X%
the also completed investments. funded Venture and additional of We acquisition Photonics two Honeywell Rebellion
is double increased by and were U.S. Now led for key sales X%, Space X% DoD Aerospace, let’s demand grew and orders on for turn organic year aftermarket an talk & Space systems. & Backlog business guidance up volumes to up and segments. Defense digits. about basis global finishing X outstanding programs digits, the overall. and Slide an Starting on the navigation with Defense for double up
drove Additionally, growth demand in defense. for Honeywell JetWave Forge double-digit
XXXX military and connected we about launched be continue opportunities you we excited for growth As the JetWave to recall, in there. platforms
Commercial OE, sales. while were strong OE lower driven transport aviation business partially In offset by demand flat. deliveries grew X% jet X% up in by major were air aftermarket by sales platforms, Commercial transport organically, air business across aftermarket increased driven sales approximately organically
margin team. by for volumes. protective systems outstanding strong were impact points and organic segment Productivity of sales an Solutions, Aerospace and in commercial another aftermarket products, excellence and volumes major Aerospace and personal was project lower on year productivity, sales basis, driven for Intelligrated, XXX Safety basis XX% driven expanded In the down equipment. the timing by demand XXXX productivity lower
of sales products the quarters were XQ two of approximately and as the warehouse timing the of volume expected, as that our those to SPS will automation similar segment major nearly face productivity Intelligrated protective equipment. basis and margins periods. result a points Within as year-over-year contracted due XQ comps in double-digits sales were and XX% systems difficult deleveraging comparable most are prior each XXX to to XX%, down we difficult up projects. Intelligrated personal business several quarters
we our beyond. As the the to more to This in order’s major posted last XX% robust pipeline projects in Intelligrated for second with second the quarter, backlog discussed orders which as the drive growth consecutive contributed growth been over in business year-over-year. these and starting begin than significant has XXXX XXX%, up call, quarter increase well positions the for
services. aftermarket continue service growth businesses sales Intelligrated’s large double-digit and for our installed life support from strong Importantly, with growing and benefit base to cycle
expect the are distributor products, productivity normalized to return business in see to destocking, In inventories now we XXXX. continue approaching we but growth and levels to
reflected have significant the our which of previously as third is seeing growth in We actions we compared business taken a improvements have as discussed to and commercial the sequential operations challenges we’re to this sales in result, the in address quarter XXXX.
we’ll demand Safety decreased sales demand XXXX. the more improvements were throughout that the products, X% was business, our in continue volumes in sensing gas retail to of continued business. offset down optimistic quarter as business for further organic We’re personal equipment than softer and for by protective the the see In
the double-digit for products projects which connected as driven ongoing was to contracts quarter the including security. up offset fire in management suite growth were energy business is X% software growth Solutions were in by Building of savings double-digit vertical. growth the client and platforms U.S. our the growth in commercial the That Double-digit strength in Moving partially performance airport sales offset Technologies, and sales, Building building products in organically, our including down primarily by across Honeywell
favorable progress expect the targets XXX in impact the the quarter improve business. to from by and homes quarter, we towards accretion we impact HBT we in business. fourth margins margin long-term approximately from in the basis our the as – make segment expanded driven excluding were to continue Segment of margins spin for as this spin-offs the the flat points XXXX
X% sales and Finally, organic on by X% organically, up were in sales strength smart an and Solutions automation Technologies, Performance energy. were Process Materials portfolio driven the up basis. across
double up in business, the allowing were Additionally, businesses a our strong mega us global to with digits double backlog exit digits. automation up orders was notably in the and projects year projects which
UOP, gas single a in organically, high midstream strong offset catalysts driven software partially unit business, carries sales the declines equipment due sales, of to X% and of fewer In Backlog equipments, digits gas processing margins continuation growth petrochemical up know. in was were in by in which as domestic our UOP in U.S. cryo lower as processing the markets up double-digit you by result
Organic capture the sales pricing suggest imports Materials HFC size at were forest X.X impact due of Recent illegal take that by million Europe. the in X%, least of This means in we are products to cars. lower illegal flooring ongoing driven annual contributing equivalent estimates emissions illegal and Advanced emissions. imports of Portugal into a to that to all the these volumes the down
to HFCs seizures to total imports. countries Increasing enough member harmful of and continue actively not illegal address reductions imports. industry, the important to yet We illegal are regulators, work private with partnership encouraging, they’re EU but EU illegally in HFC meaningful
and remainder we’ll to grew and was the high and on efforts Advanced materials electronic by of additives packaging softer pricing single-digits. these demand pressure While chemicals. Materials, are experience in up offset composites and continue mid This HFC was single-digits ongoing, for volumes partially
higher offset of mix in margins direct partially XX by basis points contracted shipments by segment and of the improvements PMT driven UOP equipment mix materials overall, volumes, So in catalyst productivity. the by quarter
margins As quarter-to-quarter and equipment discussed the basis catalyst in PMT for points. we’ve project UOP expanded mix has the XX timing before, full-year, an impact on of and margins sales outsized
enter as strong performance backlog cash off orders resulting fourth a earnings, So we expansion in into with and very the strong a and capped overall, we margin quarter well XXXX. as healthy as year
turn the X let’s and to markets Now, outlook. our XXXX Slide and discuss
a interest As possible of Darius markets. recession indications Brexit tensions we yield tariffs mentioned through rate where year, challenging uncertainty The reality like XXXX, in managed were the constant. a and trade weighed with policy of inverted of and on curve, signals
manage fully evolve ramifications exit U.S. East additional from the in it’s the developing to remain trade and more comprehensive to election themselves those clear disruption. European conclusion; yet through. now highly-charged health market and execution with in on of play known. work the the have started some be on to companies we long-term place China rapidly created uncertainties Union the agreement Middle aren’t path have X the Brexit, unknown. And how U.S. U.S.-China begin resolve to and in deal forward their the more Phase much There’s however, done out is but still potential as coronavirus and of the issues Today, the threat Brexit brings it will of uncertainties a is many Tensions The a recent for has XXXX. the year between for
In are Boeing the XXX return delay in schedules. facing its in production addition are discrete we their as and continued expectations to from service that, for as XXXX, sales headwinds to related MAX others production to recalibrate aerospace has
We however, situation the are XXX remains aligned fluid. that MAX the assumes Boeing’s communications most roughly returns service recent to mid-year; with
remains broader So, in while they’re in today, short indications of dynamics fast-changing that several business uncertainty fewer cycle challenging and cautious base potentially outlook. there and create our perhaps recession macro the a
to for factors, EPS typical short outcomes we us and cycle the it’s range outcomes will guidance than of could range have to that a these be difficult result. for you’ll With that see year forecast wider the due
East and that and deliver the stable in Middle remains new backlog East. can Middle relatively we outlook projects the to assumes continue Our obtain
election We the interest investment. rise, not stable and remains U.S. does support assuming economy are lending delay policy monetary rates don’t that to and the
and have material chains economy impacting We outbreak. broader supply already impact aviation SARS hours coronavirus have a the negative could experienced on particular estimated as in flight in also which becomes the the significant, as has was impact not with the more
build rates, mentioned, of incorporated XXX the latest We’ve outlook. MAX own communicated the our into as I revenue
to Aero knock-on effects play out. are overall the of yet So, supply chain
one So, confidence as than setting in ahead, it’s have for more an while years equally and the prepared we positions uncertain we have ourselves up the just perhaps and year our market completed.
budgets again levels moderate to the Slide in in outlook. and we and Defense Given by digits XXXX, discuss expect XXXX. and but segment that, the move double let’s X remains experienced & with Starting growth markets Aerospace the strong in strong, to driven more we stable relative
continue tougher demand will We see aviation, to aviation business business in healthy OE. we but have comps and the
continue of MAX. flight expect the commercial and the phase-out. in That will grow retrofit the be a well driven older and result We partially delays aftermarket as across of the impact by the by equipment hours ADS-B in service aerospace as remaining demand offset modifications as will to upgrades
headwinds sales delays. production have the will Aero However, from MAX
to improvements impact we closely We’re as continue expect. the monitor taking in and you leveraging and production recent as from including actions situation our would to our this try we mitigate base best to accelerate supply backlog, can, MAX
muted provide for potential profit our to the levels potential be MAX due Additionally, segment the compared support their somewhat with will aftermarket some offsets higher as to for margins. sales, OE impact will earnings
the As a first experienced in quarter dynamics expecting to low-to-mid high double-digit single result to as XXXX. we’re and we the single for aerospace, the in of be fourth digits growth year organic across in these the sales digits the compared up report
Intelligrated automation XXXX and to continue our the Now as seek expanding sales turning services warehouse will fuel to and to demand. from to second implement strong differentiated warehousing dynamics to contributed expect continued installed the distribution we XXXX, half and customers These that base. warehouse growth in increased growth expect meet e-commerce orders SPS, strong we macro in of solutions robust trends
warehousing which to as the products the half industrial expected with destocking the of remain recovery expect safety continue Productivity their macro second Excluding market, slower plan executing weakened, in growth and and expect sensing we year. as return in XXXX in industrial indicators and turnaround we mentioned to will sales. the result we a is IoT
SPS Overall, begin margins, single in to in enhanced by growth SPS up we productivity low and approximately improvements margin in expect services. XXXX, productivity digits expect recovering flat sales software and actions, be we organic product to and to driven
our following non-resi a construction market, portfolio, market, the markets. Homes to primary center the to of exposure the HBT, spin our data In infrastructure is and and
low to the to continuing up we slightly to we’re non-residential be organic HBT flat today, outlook single monitor While across we construction digits. anticipate to in to remain up expecting sales market down and are modestly overall XXXX
expect fire in continue. modest We strength commercial growth and to products and security
growth lower and impact and and near-term, services in expect vertical ongoing the deliver In the projects from system continued mitigate management pipeline driving airports in on performance software we to Building of development are to strength execution Solutions, contracts building and focused orders. we growth growth. driving energy better continues headwinds
PMT long-cycle UOP single outlook in XXXX HPS, market, but and softness gas and high similar healthy midstream trends continued by to demand XXXX gas oil for market continued HPS driven orders digits a entered is equipment and robust projects. The U.S. UOP with The for a processing recent backlog, mega up in the projects. with both
Finally, execution business in continued with from specialty Advanced our we products Materials, solstice and growth products. better in expect flooring
HFC illegal half first put growth, of for the into continue on particularly the year. imports the to pressure Europe However,
up in dynamics, we organic these PMT total, digits to year. Given low sales for the expect be to single flat
to diversified in will strength playbooks, macro perform our the and us long-cycle XXXX we a Overall, with to operational combined strong is backlog, which headed tough healthy another portfolio of Honeywell with enable backdrop.
how talk come for dynamics slide Now, X together our about guidance. financial XXXX to these let’s turn and
XXXX. and investments commitments that for new be breakthrough have deliver Honeywell, operational to all focus to is it. our us growth, fuel future which not at with effective and rigor, development strategy the enables and ongoing initiatives continuously to productivity smart financial product and commercial in changing drive continues excellence an our on We on to
headwinds even deliver unpredictability market of expect on this environment. embodied short in which in of sales uncertain our short businesses These to initiatives, a outlook X%, year portfolio, to organic us end MAX the delay reflects expectations, the our from overall transformation our with cycle production current for diverse solid strengths cycle X% cautious a growth and macroenvironment. backdrop we XXXX, XXX balance position and market the
long-term points with approximately expand or increase We about framework. OPEB and to is the – overall company expected discuss next in pension be points XXXX to for I’ll XX to margins basis $XXX our which year below-the-line EPS, $XXX million slide. about XX in expect a the the basis income in prior from consistent $X.XX detail of more million
other $XXX to and repositioning the planning be take $XXX in In for $XXX $XXX count the fund expense. Combined, of charges projects $XXX below-the-line to shares, items to million addition approximately as income, of income million results this million we million items in range the weighted year. continue key to million XXX include remaining note in range $XXX below-the-line to average of to the million million of share high pension to of return of
of expect higher per EPS $X.XX XX% up All an XX% from to we’re income. to tax effective pension approximately share we $X.XX XX% X% Finally, $X to to rate the guiding for adjusted, benefit – of including X% in, the be XX% to year.
income to We $X.X continued $X.X working generation quality cash high XXXX, billion by expect improvements. strong cash with continued growth and free billion free to capital flow adjusted flow driven of
equates million performance the cash from headwinds appropriate to our income. excluding compared cash to higher CapEx payroll believe and non-cash anticipated our peers. approximately to to and enables investments, XXX% $XXX more This payments. cycle impact income excluding we other approximately, due plan pension to and environmental conversion reflects better comparisons generation XXX% adjusted $XXX million expect of free the flow an calendar XXXX, additional operating to of pension We
capital in balance completing M&A, additional mentioned. a continue with have we’ll of to shares. and of significant absence do significant to to deploy continue to desire We sheet opportunities, have do M&A the a of as strong Darius Honeywell the capacity but strong pipeline repurchases more We
excellence, to key we’re share range compared from growth, Segment than over business Now, our next $X.XX XX discuss as driver of contribute providing XXXX X as per bridge volume let’s productivity months. ongoing to wider the the could a benefits per of to will a number turn XXXX. do impact some $X.XX I previously slightly we continues to earnings of noted slide continued variables result earlier, commercial improvements, profit to share. that be our leverage, funded earnings the and repositioning, typically
a We of base X% year-over-year. benefit expect $X.XX per a our delivery share share reduction in to at case, least of share repurchase approximately program, additional which a count as the result has
Our a to rate benefit is of to expected EPS. $X.XX tax of to range $X.XX XX% headwind XX% a a
a $X by of are per the per investment higher result The to I of expected mentioned excluding in high primarily earnings the increase tailwind, expected the to costs. returns in is in range previously. item XXXX pension $X.XX pension $X.XX $X.XX income range of in XXXX. income, we items $X.XX benefit a to as expect a last rates from a discount repositioning I below-the-line be headwind that the mentioned share driven including on to $X.XX and lower as range share, be
the little I’d just take a So, to a discuss pension detail. bit more dynamics in to like moment
XX% return-seeking conservative other increase as XXXX, pension our we return-seeking pension resulting base of the and earned half over $X result were in markets higher to more those in assets. in with in year. combined year, driving lower an XXXX, lower last rates the in is higher approximately XXXX, base plan de-risked in even discount compared As XX% we asset have income rates of expected. This return fixed-income previously, of billion approximately with of being asset the talked a our in assets, strong equity assets the plans about like assets
now, now fixed-income Our that continue with plan XXXX. to it’s approximately after and assets; of our derisk XXX% funded we is pension XX%
long-cycle the are, year a we’re backlog backdrop the short cycle while the our once macro cautious about outcomes again, in predict. hard summary with We in healthy business. so, entered and to
and prepared playbook, profit and markets, solid record segment another primarily with year from strong execution continued have deliver capital of strong a performance a our to strategy. we’re growth deployment and We end diversified track
XX Now, of preview let’s turn for quarter. a to slide the first
sales For headwinds in and other strength from to of the products, SPS process the equipment some up building automation, short the growth cycle organically portfolio. X%, in be driven we continued to components organic quarter, down and of UOP and range by by expect aerospace, X% our of offset first
Keep of our in mind, strongest will of XXXX comp. quarter be most QX the difficult year with our
We excellence, to the productivity benefits margin range quarter. from expansion margins expect commercial points segment to rigor previously segment resulting basis continued XX first repositioning of in and profit year-over-year funded drive to and points segment margin of with the growth basis the XX.X in XX for XX.X
defense, to Aerospace, U.S. the I In supported discussed. orders, robust continue and commercial growth and backlogs demandable as see by firm we aerospace
However, quarters growth double-digit in through XXXX sales XQ growth as straight after high XQ single-digit of five XXXX. we’ve stated and
of of We accelerating moderate MAX to the more expect recent are as will moderate year, XXX recalibrations growth others which the we plan sales delays, aero contribute Boeing’s rates organic impact in some as from backlog. mitigate we although by to the for growth that production is sales XXXX. production most rates our to enter headwinds facing
safety. we contribute outcome to Intelligrated in industrial the expect an return to and project productivity half XX% in sales likely growth will by year half XXXX, this end but the growth robust second destocking last quarters. SPS, more come the in of approximately although get mentioned I impacted sales in sales growth to will distributor In to at growth following be to in continue to strong will time, of timing expect quarter orders the second products, we first slow and due substantial a
well and demand Technologies, and strength strength airports. commercial expect driven continued the by in Americas products, as security in In fire Building we as
We see for strong as opportunities to airports infrastructure including in and HBT. data projects center continue growth
we sales However, other we building verticals within expect year. and as energy solutions begin the software in project
and by demand part and Materials Materials see a we will the equipment and the persist in the imports business services, headwinds Performance to from process XXXX. Advanced healthy in into for Europe expect in in UOP. HFCs early The in specialty continued slowdown and legal lower China, Technologies, In expect products of we products automation demand the and driven of growth
to effective be quarter be first to the tax rate count share XXX average XX% expect We and million between shares. the XX% approximately and in
in All to share of to results $X.XX per X% earnings of this per representing $X.XX the earnings share. of in growth X% range
quarter across to expansion In the initiatives mixed productivity and summary, and margin headwinds the businesses to times all year ongoing macroenvironment plans in to place well first the the with positioned compared and impacts mitigate ago. going drive a in into the of tough
continue to opportunistic share through flexibility balance returns generate to sheet strong have also and We significant M&A. repurchases
like call to Slide I’d that, With to the on will turn wrap XX. up back over Darius, who
