HON - Earnings call transcript Q1 2020 | Honeywell International Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen, and welcome to Honeywell’s First Quarter Earnings Conference Call. At this time, all participants have been placed in a listen-only mode and the floor will be open for your questions following the presentation. [Operator Instructions] As a reminder, this conference is being recorded.

And I would now like to introduce you to your host for today’s conference, Mark Bendza, Vice President of Investor Relations. Please go ahead.

Mark Bendza

Savannah. you, Thank welcome call. and first XXXX quarter Good to conference earnings morning, Honeywell’s

On Chairman who our Officer, today Adamczyk; me Chain related Senior the with call to Chief and are to joining today Vice Supply participate and Vice Q&A President Also Torsten and President and here Chief supply Lewis. Financial Pilz chain. Greg Officer, us is is Senior Darius CEO, in

that of in of website many them elements today. factors, that including webcast, light. and that non-GAAP are conditions at any Those on economic we forward-looking changing www.honeywell.com/investor. ask our based that business and our Note this change This based call businesses our including and statements and of as available reconciliations, them contain the elements presentation interpret see on on are we can you best world view

herein identify the our in XX-K and noted, to views the the for informing, Annual XXXX share uncertainties principal of No modified requirements that at of to consulting even the and performance abandoned plans otherwise with we or Form with any be or Unless filings. second may our with and their on our Report not affect will described on be may prior This employees SEC respect XXXX. final results financial risks our other satisfaction quarter morning, or We review representatives. plans will without first of quarter decision taken time. and any applicable are negotiating final such respect

your questions As at always the for we’ll leave time end.

Darius to over turn With Chairman the call that, CEO, Adamczyk. and I’ll

Darius Adamczyk

morning, good and everyone. Mark, you, Thank

few like would opening remarks. we Before to turn I to make slides, a

impacts suppliers. call communities, pandemic has holding on and our to customers friends our during COVID-XX families, The unprecedented times. this neighbors and our clearly employees, from We’re widespread

number At safety one our health and the priority of our is Honeywell, employees.

during our well-being infections preserve employees many the company. taking are to very of few around Each company precautions a to and challenging strong across results commitment world, employees our in times. over our their these is customers XXX,XXX demonstrating We the to

strength, would every healthcare courage. on the I sincerely them are of to like The fight. men their the express for are this heroes emergency. working I with we’re protective gratitude can other them health thank everything to critical global production resilience we to this supplies. support overcome day and workers of to They equipment women doing the my and and frontlines also increased and personal

morning, This we’ll six topics. key discuss

our a say-do and particularly even we this during, rapidly first we’ll original deteriorating a First, demonstrated that on count performance, EPS environment. despite our segment reliable margin quarter can I commitments our we a quarter outcome. crisis, outcome which review on am in investors as, our over-delivered of proud

women and the and Second, we will we discuss on to employees healthy. are keep our working the men frontline safe and how

is Third, we’ll limited for among outlook ever be quarter. the next is the commensurate detail provide most the usual, that visibility are our in environment. discuss to level experienced current quarter with quarters circumstances. outlook The for have second and our Accordingly, our second than of the current but will likely visibility few unpredictable we’ve under quarters the we’ll a less detail our

a economic full our and the can suspending financial guidance reliable environment again once until stabilizes year we also provide We’re forecast.

emerge value of will decisive will position, responsible liquidity our manage taken expeditious we we actions the through will shareholder have already ever. outline sheet and of than which Fourth, protect and an the Fifth, provide to sheet crisis, balance and management. strong stronger overview we balance years take

supply liquidity. chain, managing engaging cannot risk costs the operations pandemic, We but mitigating preserving customers, can and we to our control control how we’re with and

we opportunities are which some overview finally, are applying to unprecedented plans, we crisis new already this so we’ll for diligence searching an And as locked As and situation. discipline Honeywell’s We’ve of not you’ll that level provide answers that unfold. in portfolio. see, are aligned usual continues our well we are the of to executing to

Let’s for to up expansion our operational the rapidly our the in share of deteriorating XX% suppliers expanded year-over-year first end basis X. XXX margin segment and $X.XX, margin and Earnings for of environment. and the quarter The above COVID-XX on delivered customers. quarter created guidance original segment EPS points high spread Slide global begin per XX.X%. a We during was our constraints first Honeywell,

cycle was organic the end In short to effects our resulted and sales and services. impacting Oil an X%. particularly also combination The ability and in decline demand in markets. provide OPEC-plus some weakness, sites cases, and access of COVID-XX in Aerospace restricted, caused to complete the Gas of businesses customer our deliveries dispute and these

you quarter excellence first above As with of the expect quickly end to from come cost points high Honeywell, points XX to productivity combined XXX and changing our commercial drove responded guidance. by implementing which rigor expansion, control of segment conditions have margin basis we our measures, basis

We also the flow cash despite at due the macroeconomic cash of quarter collections challenging customers of from generated million lower to conditions. $XXX the free end

company COVID-XX to was challenging responsible dispute. first We the the rapid the quarter return billion deployed investments future. the and capital capital $X.X dividends pandemic due implement a for balanced our quarter. OPEC-plus the of continue of CapEx and across and share high to first We during This deployment position escalation to repurchases, program our

– to strong but effectively effectively our commitments, We’re over-deliver profit say-do. through demonstrating managed on we challenge our the

Slide response the Let’s to turn to our X to pandemic. discuss

implemented full-time the frontline work-from-home keep to all for nearly evolve, restrictions to safety employees and we our crisis. as response safe, As employees. for our pandemic non-manufacturing well of We to of the all the employees including ensure travel measures our aiding employees precautionary as started acted COVID-XX to several quickly to the

practices social performed possible, manufacturing in distance provided protect safe our regimens, At have possible. employees isn’t Honeywell hand and visitors, cannot providing shifts with breaks and sanitizers, cleaning where we remotely also masks. site employees place we enhancing Where and locations where be measures work implemented to including sites, as lunch staggering putting restricting such sanitation distancing

implemented continue all We’ll guidance practice to We putting have health to at and and are with national several also locations place expand temperature as from authorities. screening comply in needed. and mandatory capabilities governments that local

In we and for by testing will coronavirus that that addition, not of will U.S. paid a costs announced treatment covered provide upfront year full employees non-exempt and are insurance employees. pay Honeywell sick-time for

in Finally, $XX fund million a announced we employee employees to help relief distress. financial

We professionals to also medical recognize the keep urgency safe.

demand. production our up protective ramped quickly of have equipment address to We unprecedented personal

NXX at manufacturing safety the our announced Rhode urgent need recently adding help to sites we’re in Arizona of The and combat create disposable than We XX more jobs masks new Phoenix, is virus. and capabilities to U.S. facilities existing support Island produce more millions additional expected that to to masks support X,XXX government’s these produce critical than to equipment. the for Smithfield, monthly to two the efforts capacity million NXX

weeks, Our producing nine installed only Smithfield, line five normally already to We months takes facility production masks. NXX a complete. process Rhode in Island a that is

Honeywell critical used testing is supporting protective the providing eyewear including ways as personal equipment fight in well, production against services ventilator production safety our other COVID-XX other as ventilators and such increasing of sensors of manufacturers. and to increasing in facials,

personal and laboratory that announced research solutions Germany chemical two government which response two shift over hand essential These sites actions are the we taken months we’re to to Finally, produce U.S. testing produce sites we certainly our created at the have to of sanitizers to agencies the agencies to on in manufacturing government in challenging frontlines the many recently role manufactures sanitizers donate entities and safe. will a for and for keep need. manufacturing we protective and COVID-XX heroes shortages in distribute next high-purity hand the to times These by proud to applications operations the equipment produce and pandemic. will

it Greg sheet. on to detail on quarter Slide the quarter Now let well results second discuss our more to as X first provide and me the balance our in to turn as views over

Greg Lewis

the organic X% last you, and and the creating the which sales good first by In Thank morning, particularly chain access effects constrained supply to across declined two pandemic restricting customer of challenges of to weeks globe to month. quarter, the sites, ability everyone. deliver, the three our in spread the as Darius,

were Defense slowdown navigation of communicated guidance U.S. the from an to hours sales partially our by flight offset on key MAX demand and Department rates, for OE transport previously in was aerospace. programs lowered in to and as air and a commercial deliveries X% Space Aerospace reduction organic up and primarily steep systems XXX basis and Defense build Boeing

Solutions weakness projects in XX% Productivity sales than as personal due part down and major of short-cycle were for Intelligrated of expected. several the the Safety about to organically. sales protective by demand the portfolio. was Increased equipment timing systems respiratory down offset were more X%

quarter. conversion, backlog voice year up major in aftermarket As our last the demand a year-over-year Intelligrated up increased reaccelerate tough in due XX% backlog to this robust, call, expect and growth quarter. reminder, and very was a to approximately solutions, first the last strong created second systems we Intelligrated growth of approximately remains comp services discussed as which organic in for quarter for we XX%

Solutions security X% volumes driven an and primarily products. lower organic and sales on Honeywell Technologies in were softness basis, down projects Building by management Building and short-cycle building

by prices Finally, decline down Performance in X% with the COVID-XX-related X%. stemming was down negatively affected Materials sharp and dispute the the disruptions oil UOP and X% Technologies, down from and HPS OPEC-plus

sales also contributed imports Advanced Europe HFC into Materials lower refrigerant and illegal automotive Continued volumes the in to decline.

drove productivity above segment our earnings XX guidance well challenges, expansion points. commercial to up excellence range rigor with delivered We original actions margin share high the these our above basis of XXX of swift and end of $X.XX, our XX% of original points, $X.XX. cost $X.XX well of and guidance Despite XX to basis combined per

earnings end drove first primarily compared profit our favorable year-over-year. new drove lower rate, India without the of a last to quarter of Even up Segment guidance year. $X.XX EPS improvement and impact, effective legislation EPS X% adjusted tax while expansion growth was above tax high the to the $X.XX of due tax $X.XX

sales flow, of free slower March. and driven year-over-year lower particularly We generated $XXX late down primarily in collections, by XX% cash million

quarter. repurchases, million over share to repurchase plans $X.X continued in XXXX to our $XXX substantially our share completing capital billion We dividends and execute full-year We deployed the commitment. first deployment of

relief execute our or over capital but a expenditures us We million and very will quarter, the challenging was to segment enable that this millions quarter coronavirus on also produce in expansion including margin to over-delivered in Overall, effort. EPS continue commitments. the NXX invested achieved to and profit, $XXX we more help masks investments

to Slide Now to operations. our let’s turn discuss X

critical around the is portfolio essential highly aligned for to businesses Our guidelines and world.

are working ensure have teams able tirelessly customers in compliance government markets critical Our we regulations. in services with to globally been that and equipment provide to our end to safety

inability shortages, COVID-XX of spread challenges constraints the to the access our challenges pandemic sites governments companies and and temporary engineers our operational slow keep change site transportation closures, has included of Honeywell, staffing safe. project and measures spread as and for created The and suppliers logistics to These customers and operational The employees customer service for implement disruptions. daily.

they have continuity extent we the processes and However, business rigorous to ensure are minimized addressed proactively to possible. implemented

Though operational to China, identify in to we headwinds, up integrated disruptions assist and have to chain suppliers After January in running. supply center global financial Torsten’s cost efforts team’s leadership outbreak under operation distress. monitor risk keep have in manage tactical us and been the established able set processes a supply and our its

temporary We to support monitor remain they them provide experience to operational and all closures. to reopen continue we they ensure suppliers when help

well of operational. are suppliers our Today, over XX%

has and supply and imbalances. modes to team been logistics Our availability amid ensure transportation transportation demand freight securing proactively

sites globally. in to operational our where stands around Europe, in staffing XX% of are it in the mandated to sites over As including Mexico, Approximately sites XX% regions currently world, constraints up reductions governments staffing. of today, Asia-Pac, and XX% have select are XX% our experiencing

of to are arise. because limited in respond challenge operations that new continue our of predictability are when financial these closely to running progress experience mitigating and suppliers of are But constraints or operational global but but and interruptions We our our to headwinds are monitor supply responding pleased with chain, short-term We our on actions, our new and we unpredictable those contributing disruptions our these day, with impacts. outlook. with some every work challenges these dynamics the swiftly

X, segment Now the our and discuss quarter. to we’ll for Slide second let’s turn outlook

ever a Darius financial normal providing provide of once few that and the stabilizes next our believe you’ll And reliable different give comprehensive level we until to is As our visibility quarters have We has we limits be full and environment under set with among forecasts. and versus are experienced forecast we said circumstances. the guidance. it our again in ability the Accordingly, likely are current that to guidance current is precision the can the previously, of suspending environment. inputs economic see important commensurate a we unpredictable therefore, most

second a decrease we and a in expect more aftermarket significantly than hours aviation our impact more based global the transport air flight on decrease flight XX% Aerospace, business than will with which sources, commercial hours quarter, in global Starting XX% in industry businesses.

commercial our equipment original production ongoing temporary delays, business due the jet will lower economic and MAX shutdowns business addition, the XXX OEM be In impacted furloughs by demand slowdown. and to

and though, offset will budgets commercial by Defense this in we end However, significant expect challenges and more growth and intact reduction remain in than Space, government the defense the be broader market demand aerospace segment. continued

we sales than of XXXX. more to down XX% Aerospace expect the be As second to a result, compared quarter

challenging decline coupled COVID-XX the in OPEC+ with volatility supply disruptions the created dramatic environment. chain a PMT, prices dispute, to and related Moving the oil to related has

even cut OPEC+ the by broader for encouraged are action. hope agreement and we We production

demand to need meaningful marketplace. in more see impact a we to in increase a However, sustained the see

oil said OpEx in what sustained customer seeing cuts, and on often past, today. price we’ve is to pressure leads which volatility project budget and CapEx the As we delays prices and are

We expect Products second processing. in businesses, the will declines CapEx of in shipments. budgets and catalyst and refining equipment decline create gas services, reduction for customer a and steep continued Process headwinds quarter The with Solutions production field our in in UOP in OpEx and weakness

to we and pressure engineering UOP putting push the Additionally, licensing new volumes right projects the anticipate will in near-term. on

those discussed projects the expect calls, down XXXX few Solutions a in entered burn next have we healthy we we over Process last As few the do of earnings global to and quarters. backlog mega in with

not quarter. we cycle the orders expecting to second long decline any are significantly new Although have we received in cancellations,

construction With volumes the global drive sales. pressure Advanced lower will slowdown further and Materials, automotive plant closures will refrigerant in a projected

PMT However, are the of research in more to and encouraged chemical expect demand be down we than sales compared Altogether, specialty by second we products. to packaging, for strong healthcare XXXX. armor XX% products, quarter our

In impacting as certain timing building temporary timing occupancy the In environment, projects HBT, shorter Lower have building potentially of and the spending, nature. multiple are disruption customers the in deferring and non-residential we delayed to see site projects term of are impact COVID-XX long-cycle Building verticals of in Building and driving pandemic purchase Solutions security, paused non-essential and fire Solutions access of products. management, delaying services. current

where underlying in and products and particularly we However, timing in continue these we and orders believe are to grew term the quarter. see the fire largely short effects security demand, first our services,

may begin to as Technologies Building begin businesses reopen. to stabilize So

second expect We than HBT down XXXX. quarter be sales more of to XX% compared to the

distancing see systems Finally business in social our the projects SPS, requirements, resurgent major booked we continued government Intelligrated automation will demand we from has created e-commerce, robust of our year. growth warehouse backlog. as the second more conversion In supports last for quarter, that enacts and

and the remains business XX% backlog year-over-year expect year. to well up Intelligrated Our for perform strong, approximately of we the this remainder

in automotive business, medical headwinds be aerospace end markets and in increased sensors resulting for ventilators Weakness retail. the also respiratory gas conditions in which products, and equipment. headwinds including equipment in macro by in heavy resulting sensing are partially cycle is the short IoT demand productivity will However, SPS sensing and businesses, offset our in and

online we course, and future. at in Finally, masks online that is facility and for Rhode demand level to to Island other our are, quarter. our the record is second for already continue protective personal production and facility foreseeable we come seeing of Smithfield, expect Phoenix respiratory Mass expected demand the equipment

quarter, up clothing strength in the categories. digits were face, respiratory, in orders eye, gloves head, PPE triple first with and

Intelligrated. second up equipment triple more PPE protective backlog cycle In headwinds we macro growth personal to offset in short for the quarter, and and the however, now than expect digits. Our is

be second to sales than SPS the more quarter XXXX. compared down of X% expect to We

was So while COVID-XX resilient, impacts of are across the the global our and diverse the meaningful combined OPEC+ dispute portfolio pandemic the economy.

as to rigorous to a operational our as as MOS suppliers of continuity we the our and our to change have place of continue continues operations, unfold risks, evolve. customers daily manage of health While and well crisis in impacts those the the

the As the down versus very year. a XX% be challenging sales company for more quarter prior a with to than result, expect second we expected

move liquidity. on Now discuss balance sheet and and Slide let’s to X our

Our challenging for times stable opportunity as sheet our foundation, as well provides a during strong such these. balance as company

We like for been which long-term advantage credit years, XXXX times XX a have during XXXX the over has downturn a maintained for today. and us, premium competitive difficult again rating especially in and

many in to precaution quarter We pension unpredictable years leverage reflects position and the financial exited incredibly a good in additional It and we first actions times. responsible flexibility and management, of prudent liquidity. our during capital further an as emphasis strong XXXX stewardship an on bolster of significant these our took plans

our further prudent the of pension and our income remain even plan tremendous allocation as asset derisked we to discussed pension over-funded our be proved in first As requires the in at quarter, by the fixed capital outlook has plan’s the XX% markets. volatility in quarter end additional which plan no with call, increasing to funding the the

maturities the of in XXXX. offering with We billion-dollar also XXXX February euro and bond the refinanced euros maturing

We $XX.X have undrawn total of facilities delayed-draw billion $X brings within revolving undrawn due with year. of loan in $XXX billion. XXXX and billion we maturities our pre-existing agreement, sources maturities credit million no coming only $X.X our term due which remaining the bond combined bond the of two-year Most coming liquidity announced to recently, next

next the $XXX due available of to maturities billion of term billion ratio coming we balance As to Altogether, cash, the year. readily the of $X.X and of below only quarter, first sheet we commercial on of of one. debt debt short-term of cash and sources the over end $XX compared EBITDA had short net have long-term billion and undrawn investments $X.X a paper within liquidity, investments million well and

profile can and stronger underfunded. billion was slide, severely XXXX, more significantly pension into heading than than of And the XXXX undrawn on $X and downturn balance it our had were liquidity see the was, we when you sheet is less levered, as our liquidity

on conditions. to focus of with capital preservation enter have liquidity deployment economic significant will We on greater should we and options, second expect during the third quarter the quarter clarity

like to turn the over I’d that, Darius. back With to call

Darius Adamczyk

Thank you, Greg.

Let’s turn to Slide X.

our ability we Honeywell’s strong continuity actions, pandemic keep addition of and and history maintain resilience portfolio, operations manage situation. acted COVID-XX sheet times, started difficult through the demonstrate to uncertain the These our our serving in balance to to diversified As in of to spread, immediately and discipline customers. a

discussed sheet let me and the priorities, within through cyber and our you offerings. remote operations, redeployed healthcare, key so our We supply walk balance three sales this to factory have around with areas market our supply of demand, particularly in already seeing We we where X,XXX align to morning, e-commerce starting chain PP&E rapidly efforts our other were generation. chain, sellers security

We our X,XXX sellers have sellers and incentive the the Also our teams sales proper for the plans in find target of motivation our managers modified ensuring sales our ensure to areas growth markets. sales to had the need connect best the virtual selling skills our and first best techniques. practices were sales playbooks and implement lessons virtually our containing customers, drawn to they we who team, China with practices from developed to

While a customers. our and our level the not of maintaining of embraced communication easy, high have challenge sellers opportunity for

for used even to via video. demo into XX product room of turned European partners HBT it a our he in his to center of One house a employees, a launch customers top our and live

transactional enable information place of product process receive efficiently. and customers the to in e-commerce quickly also our and websites We’re launching to orders

new launched easily their to chemicals enable work supplies. customers performing website and replenish business a COVID-XX their research laboratory For the associated quickly with important to example, lab pandemic our

remains our are conditions. me, in difficult Kimbell, together actions Demand reinforced sales weekly demand Our these by review led generation process Commercial by being a priority personally, Chief Officer. even generation rigorous Jeff with and

next Let’s cost move actions. our control to

maintaining is positioning while our company for focus also performance Our term employee long the post crisis. on base

our us of respond prolonged in potential drastic have to more downturn and rapidly and to flexibility which conserve sudden cost, disruptions or end reduce We measures will implemented for help more a to mitigate actions the markets. cash give series later will need

and and Our cost billion be fourth This includes $X.X year least million cost more quarters heavily of reduction from in benefits will year. prior by billion weighted will in $XXX the at the approximately third reduce repositioning. XXXX of efforts $X.X to

We merit expenses, limited have reduced a and cancelled for the on basis eliminated increases or global company. all of hiring levels discretionary sharply

locations, our this senior through a businesses reduced also and of including initiated reduced year in Board staff Directors or have payouts weeks. eliminated incentive some Additionally, pay weeks or substantially base the rotating-schedule, XXXX. All up work lower work and have, eliminated in executives,

taking manufacturing volumes schedules also preserve proactive or are including demand. production jobs sites at of We shortened to work stagnant to match steps our

The a controls We Phase previously X is condition plan developed economic which apparent. of respond these within and us pandemic COVID-XX be of becomes full cost described impact Phase deteriorating market enabling enable expeditious days. X that Honeywell cost completions XX to action cost believe plan, as complete the should the to to will

how Finally, in we’re let’s optimizing capital current demand environment. the working discuss match to

highest risk appropriate protect top we have and parameters implemented tighter make receivable enhance customers reviewed We of to a a position. have for suppliers assessment review cash executive solid our accounts cash in the the risk and management and working to and governance comprehensive preserve We model approval. leadership we executed we criteria exception policies and to customers our capital strong team place sure revenue the around and in

their Honeywell’s identify Additionally, suppliers already process and and services is to sales, inventory cycle. to agile into operations to and Therefore, cash a take flow we received mobilized products Having supply have manage trained investments. over planning than to expenses from traditional help keep condensed chain open we processes XXX important monthly and factories. a doors ever cycle more Many contact weekly our our suppliers risk up temperature. high assess procurement their and and essential also financial processes set their suppliers. and professionals We to

Combining changes schedules uncertain have we inventory and manage continued and across have company the faster Together, we’re the of than actions through resilience. our leading our indicators, production we’re sensing sales Honeywell confident times effectively demand this implemented realigning execution positioned ever. with to and

more X discuss in our to repositioning Slide Let’s plan detail. to turn

base us, the challenges plans for you are where end reductions the see our morning. cost reflects we PMT particularly discussed in expect Aerospace would permanent cost have ensure this accelerating environment, from we to and macro-economic As we market

We capacity net to million million. second in we’re planning $XXX of for for have reposition ample repositioning and quarter the a $XXX

reduction will as to X plan, actions Phase tails we deploy which market into XXXX proactively likely will assess conditions. and shares Our a provide are cost preparing

Now looking at space, our Slide of a healthcare of to let opportunities In across we XX, moment take areas that emerging demand are for me see multiple the businesses. some customers. we adjusting the share

increasing sensing We’re productions of and business. sensors for medical IoT our ventilators in

services chemicals Our vaccines the analytical development test the in research and business production is and scientists application are needs. support decisions business world oral for research, of ramping their COVID-XX faster and packaging to facilitate And our and meet products of biopharmaceutical prioritizing customers medicine. kits, COVID-XX offering the our Aclar expedited around supporting solid healthcare we therapies in to to help production by pharmaceutical high-quality

equipment, already have eyewear, personal for protective increased including many meet shields. face mentioned were actions masks, that and demands to taken We

increasingly demand chain Building automation of for health Also the and security for are and and surging people have we both, have who customers, and from as their capabilities monitoring remote buildings demands building’s remote focused In there driven Technologies e-commerce. and strong In occupants. for SPS, building deploy to of warehouse strong by and supply is suite for demand on plants ready Process analytics HBT, well-being healthy cyber locations. access in a Solutions, work we see for

which return environmental nicely safety, focus Aerospace, in increase and with finally, dovetails health for aircraft. really passengers And on behaviors, passenger to to the flying as our systems normal control in leadership

protect offering also to creative to are confidence airlines and airports passengers and We flying. restore to solutions in

we’re needs creating customer also environment new So is it although macro the challenges, to well-equipped address. creating that is

up wrap on With that, XX. let’s Slide

will and the what growth magnitude is substantial This challenges of times pandemic segment first impact unknown. final We OPEC+ despite exceeded and we as remain dispute COVID-XX XX%, faced. We be the of commitment segment our some cautious of challenging earnings profit, EPS with represents and quarter ahead. margin the

aerospace, cycle expect impact and quarter. uncertainty oil short commercial meaningfully is result, As demand, gas a around we there which and the significant will second

provide However, our sheet acted we resilience of have portfolio serve actions strong ensure cost to diversified in balance We capital safety our employees, health the decisive We customers to significant quickly uncertain these and and our continuing to base, further reduce optimize COVID-XX balance times. response liquidity. a working prudently to and sheet and strength protecting and pandemic. took and bolster our to shareholders our in

impact We to to on operations manage and volatility. ability we’re confident actively our the the monitor continue our COVID-XX through in market

We’re playing a critical safe NXX of of medical PPE new sanitizers. hand role expanded medical in other production and masks for professionals ventilators sensors through and needs, equipment production keeping

initiatives will emerge innovation committed we this stronger in across breakthrough I environment. am challenging in transformation is remain we everyone investing portfolio. from am times, Honeywell proud our this new next-generation entire crisis even to continue I of supply And the the Enterprise, Despite at strategic product adapt and deliver Digital. confident our than through Honeywell, introductions, our who working ever. in we’ll hard Honeywell Connected initiatives, challenging chain and to future

With Q&A. to that, move let’s Mark,

Mark Bendza

your Torsten Greg open are Darius, Thank you, answer and Darius. Q&A. the for line questions. to now Savannah, please available

Operator

first will JPMorgan. for Please go come with question The [Operator Our Instructions] ahead. floor Tusa Steve from questions. is now open

Steve Tusa

morning. Good Hey, guys.

Greg Lewis

Good morning, Steve.

Darius Adamczyk

morning. Good

Steve Tusa

kind that. just color, of So on I quarter the appreciate second

then the on kind the a anything in is of of year, that of XQ, saves, back all Is whatever curious gross the an around? to Just kind significant mix in come given margin off business. kind heal this of basis that expecting the– there half that, to a you’re move have drop segment the guys expect, trying mid-XXs little headline on more of idea of kind bit of that point of expect of you kind bit that around, You of a economic cost on of would of kind a these in bit should deleveraging – little front but and Should it of, stuff saves would here, that kind then or because a begin is. should we of kind weighting cost low to and profit kind a more this that than the get just decrement in? that and you the

Darius Adamczyk

QX, I in mean year Yes, mean, couple expect I obviously middle Steve, to decrementals of the of actions, our QX. mean that I think – we’re doing in I that. in terms for the we a yes, some cost we’re worst

perspective QX expect sort that underlying the worst, depressed QX. here, be in a to emphasize and in and from word the is assumptions I QX will most QX GDP GDP improve of assumptions, We or improve be the

still in of level can’t That’s sort our trend. of bottom, of kind some the We the follow precision that overall obviously, further trend. actions, be will on because some So of this give level cost the of expect will we QX. timing margins improvement QX obviously and that, a a not just is – – we’re of QX in was that for Phase discussed, but within totally bit deployed certain. little actions, days within not we’re with going also finalized well, which that’s looking the but and X, X Phase control in deployed aggressive next XX the taking and to our be

Steve Tusa

it. Got

of higher gross something I little maybe really So you’re than bit hold guess could margin a commenting rate. you on that, around that not kind

for us. Just kind of help frame that

Darius Adamczyk

give from than precision I that. and that, I you decrementals they’ll mean mean – clearly, improving then will that I more it’s... that’s QX start know don’t our I I mean, can Well, be worse. any

Steve Tusa

Okay.

Darius Adamczyk

Otherwise, it essentially – providing guidance. would

Steve Tusa

the the you mean, shape. on know your balance then guys completing about quarter, the you get that kind this don’t you I again? willing back is And are where in back obviously stock you capacity but and bought XXXX just your event as the Right. visibility pull talked half, of that, better I you but buyback, on second opportunistic program, do in could be are things sheet good you you have of – kind

Darius Adamczyk

the liquidity have concern loan term for on. we position, and given balance obviously, we a us. cash the our mean, I sheet, not mean, I took is Yes,

on So second kind lot time quarter. expect mean, mean, the we see assess are I optionality around. in the if to wouldn’t see have turning what’s happening, mean, of in of this markets I think a arena, see the situation, I what’s I the the half. going I in the is medical much second

half second have here optionality So market. back expect of potentially timeframe, I a QX in to get lot we wouldn’t the the much the in in but

But we’ll see.

as also move relates it’s tap implement going the have plans buybacks emphasize even QX. hold both some I of because execute in think then to think to growth there and and this as growth what our the allocation and we brakes with relook at do plans this I beyond. in that I well, it that into to so here opportunities plans, on that’s QX See on – you as environment capital – cost crisis. what because Obviously, we’re the our and are reality happens, and the we’ll kind

Steve Tusa

Got it.

way more one go to this. Sorry, about

of are cost decrement gross – For kind aimed saves what kind the of are the in the to Is year, enough of and cost kind what these saves the hold margin? to that around your do?

Darius Adamczyk

the to still because I too early Steve, we haven’t tell, it’s Phase Yes, fully think impact. quantified X

Greg Lewis

don’t reduction frankly, we know And the revenue going though. what is be, to

Darius Adamczyk

Yes.

dramatically. of problem you which could is number with operating move that different a So three here two variables, or the giving we’re all with

of to don’t down guess. we delivery we mean, get we you something, by profit. QX I then a evidenced say segment which do guess it, Honeywell, when was and, our So as

Steve Tusa

had it. to I try. Thanks a appreciate lot. Okay,

Darius Adamczyk

Yes. Thanks, Steve.

Operator

Your next Scott Davis question Melius with come ahead. will from go Please Research.

Scott Davis

morning, Good guys.

Darius Adamczyk

morning, Good Scott.

Greg Lewis

Scott. morning, Good

Scott Davis

okay. Hope surviving everybody is

Darius Adamczyk

Hanging in there.

Scott Davis

least, Darius. voice your Good to at hear

Darius Adamczyk

Everybody well. is doing

Scott Davis

maybe balance Good. you’re there I M&A a is even active of or is I the buybacks follow-up year? but little element, something it Is one in from a Is on guess position now pipeline think bit continue and there Just question sheet on just the impossible in another. for you mean, to an Steve. great that. thoughts deals can some just right doing about work? too later to is

Darius Adamczyk

kind mean you of I a on little pause. activity a of imagine, as of the is well, can bit lot M&A Yes,

an to being a as a good area opportunity buyer, a lot don’t probably because our balance the the I great in sense. But is want think thing, off position. necessarily think, in XXXX that’s that given which half buying comps. second an that sheet, makes of which be I year. don’t think could be I I is be of Yes, this of

takes But March. of their the we’re whenever everybody and isn’t end backward. I XXXX to of in I time of literally bit realistic a I mean, flipped [dollars] sitting look At economic It anymore, change than have [ph] to just valuation change, position. wants of to little the figures be. of a terms a mean valuation you should still value March, that’s of business sudden reality that’s for beginning which sink what of in off kind and forward think should you from now, look rather like pretty they the really the and conditions, and will in we have dramatic obvious. flipped, do

Scott Davis

could agree Yes, more. not

a short-term we as stuff. and point way as looks Is you’ve billion million out, about any in of out stuff? $X.X $X.X cost this of billion there of reconcile billion? $X.X a charges. clarification, the Should billion for part then it’s to to to have $XXX cost you as repositioning that more for like of think kind then of shorter-term the million structural those Just $X.X kind And it to repositioning this got $XXX

Darius Adamczyk

on don’t mostly billion, Yes, $X.X let think $X.X rest is, roughly billion is it is the that, Think of permanent. but that XX% to me to give you about color a short-term. as little short-term, which of XX% that that of

– all permanent. permanent, think that’s the It’s not you actions. not I X about majority stuff. think but term should So short all And Phase it’s just

Scott Davis

Very helpful.

guys. Okay. Good luck, you. Thank

Darius Adamczyk

Thanks, Scott.

Greg Lewis

you. Thank

Operator

question next America. Obin from will Our of come go Bank Please Andrew with ahead.

Andrew Obin

Yes, good morning.

Darius Adamczyk

Andrew. morning, Good

Andrew Obin

I question that on than XX% of peers a Just a second decline bit in lot guided… have Aerospace, better quarter, think, a quite the

Greg Lewis

XX%. more It’s Andrew, – than just, than More not...

Darius Adamczyk

Yes.

clear, not to XX%, yes, more Just than. it’s at be it’s

Andrew Obin

have trying been just peers I’m of sort guiding I so XX%, more to XXs, figure, XXs. than your More XXs, think

the second through the And So it you year? happening what’s pieces worse? provided color just Is some? second or get quarter have know between work and is the also, it quarter, into Aerospace, I going the the out to how within bottom does sequentially any

Greg Lewis

you’re what And of the in and side They continuing really rate we got commercial and see our roughly So in grew substantial Defense to nice seeing grow. as growth that’s first is well. trajectory is for Aerospace businesses, in growth down. acceleration X% see course, XX% and that us, that of of it to quarter a a QX Space, going the business coming we’re that the we’ve of

be So of it’s know. honest, Darius second to the the quarter described, expect we again, the to to to as half be the back going and relative we really – don’t worst get, year, but

the of reason why we’re full part guidance. again that’s year giving not And

telling that days term, again, is you back we crisis, including the us. very the not best that when very of and can happens the aspects do XX We’re fly to anyone, go the see all clear what and here of is something out health people with short in

Darius Adamczyk

And just that, mean... to I add to

Andrew Obin

the working Just any a items ability that follow-up release very cash down you down free cap flow on flow, and line? to big cash Thank capital one-time much. year-over-year

Greg Lewis

It receivables. was mostly

the we year-on-year. weeks Our to as dramatically. slowed March, Again last got down collections down they were of as few particularly, –

there weren’t with be to other to able You can well. to payments execute get bit skittish beginning customers imagine there little a as payments were their places actually some and people where are

new of that’s plans the these So on that’s as readjusting our supply Darius really our realities the the and do described going capital, things all to including plan the absolutely major story and to are working quarter speak. for we we going on inventory standpoint from

Andrew Obin

Thank you.

Darius Adamczyk

Andrew. Thanks,

Operator

Mitchell Julian from Barclays. ahead. with hear Go we’ll next, And

Julian Mitchell

Maybe... morning. good Hi,

Darius Adamczyk

Hey, good morning.

Julian Mitchell

a just first SPS morning. Good the around question Maybe segment.

a the for it’s what the looks quarter. one quarter guiding think perhaps, seen second we’ve the I it versus year-on-year first narrower where segment, decline, like you’re in in So

April minus Intelligrated factor, seeing and understand QX. to your rest what us that, up with plus tally Maybe going wanted that’s safety terms of to you’re the check Just the is SPS guide. within a down about that swing that Productivity over of in rest correct. in assumptions Solutions of understood from and already year-on-year whether does help in And then X%

Darius Adamczyk

accelerating – of there for couple about I Intelligrated. mean, is being our Yes, I and couple of you think I mean, a next continues should one mean, to a quarters, on backlog grow. tremendous SPS, couple of businesses

– growth positions the and frontlog, obviously, less expect have to e-commerce acute, to see backlog in we orders the more our extraordinarily demand that’s an is not we appealing. going looks So Intelligrated, on acute, that become in even and

move a captured month that as we forward – the that’s business to accelerate tremendous we’ve is business – business it’s a and single obviously, or amount year. PP&E, in So more through every of less going

So the of to growth. we other decline in the businesses, expect oriented and healthcare And see some and growth those some sensing of modest will see IoT all then sensors.

that obviously be segments Aerospace it’s a other going are to exposed decline. that are like to There

of, Productivity So business, what that’s is, kind going kind to kind Products of, be – expecting. of, low-single-digit, our decline we’re

are transportation, do not. and segments well, pretty retail going those to logistics healthcare, is Some of

that we of kind So one. how that’s see

and I think strongest could be mean, for overall, this do I see expect So, we the healthiest and – in even year our growth we SPS SPG it’s to year. even SPG that

Julian Mitchell

That energy And much a you. broader Very just thank a ride so my maybe segment XXXX, the broader one, managed helpful, to PMT one not question, well. QX XXXX around but downturn second remarkably the segment.

much help how gasoline extra being saw offset you as from and markets maybe different in of more more because on severe is that cuts drop. that of one fixed around and versus in revenue if this maybe CapEx maybe of downstream pressure down the wondered Solutions aspect in Process can well and Just pressure this in something consumption PMT Torsten, mid the out, downturn cost because

Darius Adamczyk

are we at a that in obviously the that and PMT gas challenged oil exposure going that I that do XXXX, fun. and factors UOP remember of Yes. here. be for business wasn’t worry time, But both XXXXs, is oriented HPS. the segments ran to about and because couple it have much I I

there no start The again. first whether needs so world it’s very just are the timeframe on, go oil and I of refinery, was it’s $XX I I back depressed Because it. XXXX If few remember functioning world gasoline is at seem one you $XX, is and fuel a gasoline that if you Price in consumption. price look XXXX, no comes highly work about one the to so fuel, the of there whether mean, is, flying, to in lowest recall oil demand. the what little out countries to reopening, think very if is of barrel. and correctly, about back is jet

We’re substantially south of that.

PMT. a it’s for challenging So going be to time

and reductions more going to taking taking And we’ll be with and CapEx. heard as back already Chevron taking recent you cost even some the today with cutting We’re some announcements are further we align early even as be demand. Exxon to –

and of to our we a are have on beverage, have and focus of still adjust our we of because do a food in today segment, and the to growing business in pharmaceuticals we lot segments digital the So services on. play growth the that pharma and and drive participate reality lot to so some

and cost portion I to have we mean, be. our doom So we it’s for that time align adjust it’s anticipate will it gloom. of business and a going challenged reality what entire to PMT business, base that to all clearly a for the and not be not

Julian Mitchell

you. Thank Right.

Darius Adamczyk

Thank you.

Operator

we’ll Research. from with ahead. Sprague Vertical Please Jeff go Next, hear

Jeff Sprague

everyone. Hey, thank Good you. morning,

I couple quick of a ones Just from me, could. if

XX% in of to back billion is First, just $X.X But back on $XXX this actions restructuring cost to reduction of the to same that The XX% you of used looking at January. the million is now we’re structural. additional million actions. which $XXX $X.X cost, figure billion

on heavier that, me to So, restructuring it require would seem does a spend. actual that lift

Phase So and the on could bit you might just little color actually what for provide then kind that of a be? X more me line up

Greg Lewis

Sure.

billion, the Number that one, year. $XXX to carry-over the restructuring billion million of prior $X.X things. is from about of couple $X.X Jeff, So,

we’re a many, So things incremental. do, that’s Productivity the capacity it’s because always delivery repositioning. many been over feed I years. That’s we guided continue mean, to our pipeline always one right, around you’re a not pretty as And XXX% of building repositioning sizable we

situation. seeing we into the quarter substantial you’re combat amount the here drive cost and And a so mainly to and indirect what quarter is, just reductions first this accelerated of second direct that to

in around reductions created. that gets to some specific with and it or about as direct just near-term. there deal pipeline So deploy things into been deployed cost always indirect very now it it capacity the the has to We’ve

Darius Adamczyk

in one thing also And of add to costs. other Yes. maybe then is just a is that savings portion indirect that cost to

doesn’t obviously, your XXXX, reduce much restructuring. about you any think really as we costs, as indirect So that of require

we So anticipate XXXX. back going don’t indirect in realistic. probably not levels spending That’s to XXXX

XXXX we’re live what we’ll So is back come in XXXX. someplace in see between in be it going that that through savings to It’s what of going going and to part XXXX. to was

be of that to part is going a So carry-over.

Jeff Sprague

things this kind shelf already when of Phase new the cost is just a think And the broader on you reevaluation current just significant of your a Torsten had on was you you situation? acceleration reflects this or structure really X, this that and and this also working – about is

Darius Adamczyk

is No, March. mean, to we of March react month in I the do, and changed look, the back decisively because timeframe quickly wanted all the way really the in world

do could are stuff pay Phase The work plan things things. going the X reduced of some Phase things think reductions, weeks, very we is restructuring, normal some it our because that So return up moving X year. we very that was quickly, – all decisively, those some kinds Aerospace like of next don’t to to

but window, short-term. others don’t if that’s window or heard think that, a opine I two-year that a mean, it’s three-year don’t I on know you’ve I

of we’re to PMT, have and our maybe to Aerospace in beyond. beyond, particularly not and to hopefully base So likely XXXX experience in what but going realities the to we’re cost align

to in future reality. results look our of base, realization adjust X further what the the may Phase that So more of a to a permanent realignment and cost realignment see of like markets

Jeff Sprague

you tell, quick I to Can us looked just the kind hour gave flight declines, have think hard what flight just I can us six that. on Let’s like really but do seat. the tracking more Aero, some it’s you to weeks assume than from another or color follow-up maybe would obviously, some give those my little aftermarket? of – is last down numbers, hour in we multiplier you typically mean, a

Greg Lewis

aftermarket say, from March, I mean, last would the I an the some six definitely weeks, say, pretty perspective, in the end started first in – slowdown. substantial it’s accelerated Jeff, for I of would particular, see to sure. Yes,

reductions we’re discussion. quarter, that about in earlier mentioned than going in probably some the substantial the So greater think I it, hour reductions, when we the second to have flight

So ATR aftermarket XX% particular. types down probably of in in greater segment the than

Jeff Sprague

Best color. the luck. for thanks Great, of

Operator

with Wolfe ahead. go Coe from Please we’ll Research. Next, hear Nigel

Nigel Coe

a color. already, Thanks, ground good the of morning. appreciate Covered lot

some as but you’ve cetera. refineries, customers, obviously, fair Greg, question I commercial amount exposure customers, for but is fairly et this a aero think a this to airlines, got is of well, strategic distressed

are significant So Are about you’re pricing? concessions Thanks. on you thinking and or that? pricing how seeing you for risk with and requests how credit dealing also pricing flexibility, concessions then

Greg Lewis

are so are and our you two Yes. tell Yes, as with in mentioned, that active I segments, dialog those in they we customer you particularly base can because hurting.

that to environment. can able are about customers with – ensure back navigate we they through are to to they’re us us work this ways coming talking which So in and together

disciplined through do. company so what we’re going expect to would a And you

those We’re to whole on and only doing we we’re a doing, credit with direct a orders be in taken, because have that have pay-before-shipments cases nuanced cash risk of or some But but got are you’re assessment larger require things need deeper portfolio, not substantially do like our also where customers – about consideration you’ve – before you strategic that’s we’ve customers dealing with. to to doing strategy the we’re got it. a dialog

So activity. that’s – ongoing it’s an

got dialog some and I low of that the will on myself Darius Each customers tell decisions the larger are direct leadership having taken Presidents These and levels in these senior in of of are CFOs and you not organization. the that most being are particular. down attention. it’s SPGs,

we’re could through about of happen you risk standpoint but is I appropriate So I the challenge. and it. we’ve doubt seen think to don’t yet it’s from that’s would the expect that. There out, as be in to think do what to go no play taking yet actions impact going manage solvency a us to markets

Nigel Coe

biggest levers then pulled earnings. opined And is cash free some working cash initiatives the to flow. And But and balance of on cash over have of flow capital the to a Greg. some year? obviously, maybe can on some maybe free have this higher earnings follow-on to that. input just but of companies A their guidance, describe you Thanks, lot pulling free conversion the drive flow you’re

Greg Lewis

focusing I as two can areas you imagine, Yes, biggest is inventory on, the receivables. mean, we’re and

Torsten instituted all that’s the on Darius our are receivables full let his robust sign have be say team, about and a I’ll focus big and that for got a court few press SPGs, we’re words Honeywell we’ve going us to sure way mentioned, executive weekly collections maybe with the highlighted, as teams level make a what there. activities I So as and up doing and the to to then our Torsten and

Torsten Pilz

that focus the to I fast closely reactive make our Yes, we is very main follow mean sure actions. very demand and and be very, area in

we I weeks. that last over that’s main of instituted think the change the couple

Darius Adamczyk

One though, growth on planning other I tell Nigel, though, you, we cutting will CapEx. thing, are not that

– strong that’s back a probably to in and cash We’re going Those that the high not just something on position. return to we’re on projects fund. to continue are projects. I’m planning CapEx sacrificing future cut I

Nigel Coe

lot, luck. Okay, Good guys. a thanks

Darius Adamczyk

Thank you.

Greg Lewis

you. Thank

Operator

from Next, go hear RBC ahead. we’ll Dray Markets. with Please Capital Deane

Deane Dray

morning, Thank everyone. Good you.

Darius Adamczyk

Good morning, Deane.

Greg Lewis

morning. Good

Deane Dray

for you I size if be just cuts pick that could the the to you specifics Honeywell’s appreciate on Darius, the CapEx growth could, wouldn’t us, right you all you hearing maybe please? CapEx, COVID left will on maintenance responses cut up off, And you to and where any said maybe CapEx? there but

Darius Adamczyk

mean, be, we our I we’re Yes, do. operating there might because not as much facilities obviously as

trims future There a to reduced investments some are operating growth the be align projects. bit to of be production, of CapEx, totally Some some and maintenance reductions work but of not obviously smaller somewhat. might around in the them planning hours obviously the budgets we’re seeing, some maintenance in just future some be are that’s there’ll on at modest reducing MPI – part aligned but we probably might just that with volumes

Greg Lewis

capital good imagine now the mean a NXX example. work can is And I that. right you Yes. to do putting masks we’re to go

but going point, funded. back be our plan scrubbing and mean, absolutely continue appropriate capital to to going the Darius’ again, to adjustments, So and growth is I making

Deane Dray

Do one That’s reshoring And potential of a secular supply since too we have you bit if responded really meaningful but of bit think some changes, but a Honeywell in talk discussion obviously positioned? reshoring driver? about we a hear is shortening be there, Torsten something sensitivities specifically can responding. me, that increase is Thanks. been might about with chains maybe last early, has And and how it of be just supply about getting could is change lot the helpful. the a here, will you’ve for then and mask, there the how Honeywell we NXX

Darius Adamczyk

that I a local to little right our Yes, we’ll juncture if I for too it what is tell a be think to strategy. really local. I’d local change. mostly bit there we’re has do, regional very is always for or this like as mean and at regional production strategy remember that. accelerate but I think have like that’s of kind and early to mean, to for much I anything, the still to I’d you local

got locally. You in to operate in you supply produce and which and the countries operate chains those leveraging

sure already not we it’s of that’s if change have where dramatic had. an I’m So anything, the acceleration a probably from strategy that we been,

Deane Dray

thank Great, of everyone. best And you. to luck

Darius Adamczyk

you. Thank

Operator

go from Next, Arment with ahead. hear Baird. Peter we’ll Please

Peter Arment

thank good it’s great. stuff, regarding Darius, Thanks, truly morning, you mask the thanks. Yes, you’re all everything Mark. and the for doing Darius, PPE Greg,

level heavy aftermarket going it beyond you are think structural I’d always figured a just I give you’ve this? some question fleet a and do like the there’s the How question, representative is on base. Just of installed given about Probably mean but you thinking of important, back your in question, terms of retirements? shot. kind aftermarket base Aerospace, but the installed higher been just global because impairment maybe equipment so of of I of kind unfair a an an more of be just circle to to

Darius Adamczyk

Yes, operate where well, there airlines of new cash to traffic retain And how and to want flexibility acquire to those that a or think bit I think, current is the maintain upon the a quickly cash of lot we dispose will aircraft return. air to they fleet a want depends cash. little of will trade-off

So and the then also too. timing matters, –

in right thinking spend and new not So theory makes an two because absolutely. retire more okay, our is sense. that now you and when airline, something lot in – One as exactly there’s okay, are in of That theories. But may want it cash ones, theory on. a is about? cash aircraft of is, with Sure, distressed so you to further the of necessarily, But kind another you state. part efficiencies bringing are we different

we’ll see goes. way which So it

and and fly And where the time people how think and providing and our of terms to even thing confidence energy where thing really this and at is we our can important industry confidence to is to fly up I home most in sitting spending we’re for Because again. airlines gaining all regain when time passenger we’re solutions airports probably opening that’s we again. start start single-most economies, happen the people energy. the the can that for spending remember important

Peter Arment

details. the again. Appreciate Thanks

Darius Adamczyk

Thank you.

Operator

Pokrzywinski from we’ll Morgan hear Stanley. Josh Next, Go ahead. with

Josh Pokrzywinski

all. morning, good Hi,

Darius Adamczyk

Josh. Hey,

Greg Lewis

Good morning.

Josh Pokrzywinski

question, yes, hear First me? can you

Darius Adamczyk

Yes.

Josh Pokrzywinski

hear you me? Can

Darius Adamczyk

Yes.

Josh Pokrzywinski

All right.

much how et to these But of done, to is refinery, – that do relative get still the it’s we’re on-site loose of I and building So kind operating kind impact that, customer question, shutdowns appreciate guess of bands. cetera? just first with get of in service of an or this greater down I whether of some than to some work or XX%, on folks. inability kind inability in the that

Greg Lewis

able these parse going to we quarter Solutions the to say think, they’re to growth – it Until of points be not sure. and due actually to movement X with I I in it’s becomes probably to of be to service know mean, be. first And the people hard it’s X to Josh, and issues. businesses. we’re honest, project it’s some Yes, really like we execution freer, going in struggle for lost what

to the factories, is and certain in an and it’s which on. changing to over us in impossible to clear It’s this greater But the attendance opposed it’s than a number become of have norms shared influence for on a and distancing going going of we in because that, probably capacity near the some social why so be country. put than While daily to of down type in as – U.S. precision, almost number States greater it’s different region that’s different every level

precise part provide I you more precluding so giving more could from that’s guidance. us reason why is the I our something wish frankly visibility level but of And precise, of

Josh Pokrzywinski

everyone’s relative the you of the in air risk that directions? on traffic, lends know, And your move on product about out in delays past in recovery other downturns in do that. think exposures hours of Understood. side that business If hours. aftermarket both portfolio flight kind I question cannibalization just and or follow-up to just raised any versus lockstep I comes then a different tend to on itself to flight kind

Darius Adamczyk

Well, see side. I recurrence right. think delay there hours clearly air is is and both correlation transport BG a I the bit just a I flown, aftermarket in is correlation start lead as effect, it’s to to business or lag mean, think I some probably the should that in aftermarket But hours return, with a lagging on air you being that on little flight flight the a transport, and in there other of you the think and growth of than flight effects. probably And consumption. segment whether terms return There is generally in the to that, hours there. aftermarket exhibited see

Greg Lewis

affect If Darius, that new new not situation. variable buying older plane, have different If the lots new as going that old the bigger they’re the I described taking planes, to Yes, are plane of running going will and you well. people be as that’s effect. think to a that’s deliveries, equipment earlier,

the quarters. are over the coming here see they these have that we’ll some how play out variables to So of

Josh Pokrzywinski

Stay for detail. Thanks Okay. guys. the well,

Mark Bendza

Savannah, we’ll take one please. more question,

Operator

Please ahead. from Joe go our we’ll Goldman Sachs. with final take Ritchie question And

Mark Bendza

next one on move Savannah. Let’s to please, the

Operator

hear we go Okay. Jefferies. with And Please Sheila will from Kahyaoglu then ahead.

Sheila Kahyaoglu

demand? from for thanks Hey, products? any Darius, about think think for Do they see issue. and think do a you exposed HBT, noted, I good is of commercial How service structural are think are time. you the you it’s a on of How large versus What you demand hearing you doing? customers morning, sort portion we’d short-term terms your to everyone, commercial in a construction. change recovery?

Darius Adamczyk

for her first, going CEO an structural opportunity environment what I going commercial building isn’t answer just your mean to because to or don’t I of want any our commercial safer I’m mean, think I No, I question his demand. change employees. for cleaner actually second HBT provide business see is any a for there to

structural in overall I don’t construction, commercial think I that any see So change. of terms

can to regulations. you is little world, different and imagine tougher predict, throughout the a bit you rules Short-term as have

states, of to service these region, actually we’re and some keep allowed comes going. well tight bit allowing going the visibility Some construction are more restrictions better it’s and to some on countries and and buildings, kind to have both as have to as a not little access world products as solutions. Others back, put

a it’s – but a to construction places of moving, the throughout it’s world, a returning pause vary kind some in bit more terms level state. it’s the to it’s is story, less some So world of others in and realigned it of – mixed in or normalcy of, really

Sheila Kahyaoglu

you second of coming it businesses about starting And then can recovery I back? and Asia to guess my what China segment. in by talk some of quickly question, these you’re are maybe see sort How

Darius Adamczyk

Yes, I a mixed use I’ll maybe of an think it’s and a China story bit little example. as

encouraging, saw of but So has happening. really I as which wasn’t better. were imagine, you horrible kind think a March there February April bounce the business. anything was can slow, much January but mean, soft. business was extraordinarily in we negative was not single-digit – March, been and of China, back, about

we may to comfortable which a the the before, China jump starting data little is to based get the this because back about mean bit day restrictions, second point just April normal, people are think on that. and after the you I is that assumption is, some talked doesn’t at have is airplanes lift only again in not on because going be up to fly passenger just least to pick of of what that I correct. to China Aviation So that

airline that and to of and on really to help level that. good And to a think got that’s customers they we’re ideas them of with working effort we solutions. sure our come airport some through there’s some focus make be to of have back So and lot what real a the

Sheila Kahyaoglu

for color. thanks the great, Okay,

Operator

Darius Mr. conference this the concludes to question-and-answer closing back time, turn for or to like I’d Adamczyk that additional remarks. today’s And session. At any

Darius Adamczyk

for for continuing and our I uncertain are customers remain thank their to all our our and These on support want and challenging perform times shareowners, Honeywell. for shareowners to employees. we of continued our focused

execution impact are the and we our to balance strong While business will predict sheet. well-positioned weather record global portfolio, storm track how we cannot the economy, ultimately the with balanced our of and COVID-XX pandemic

we will before uncertain We’ve through managed times again. and do so

excited be challenging, will XXXX Honeywell. While I for continue about the to be future

us you Our and for well, outlook. stay listening please the rigor Thank economic healthy. serve given safe and all near-term operational will

Operator

does teleconference. lines wonderful Thank have at today’s your you. Please conclude a day. That time, and disconnect this

Honeywell International (HON) 1 May 202020 Q1 Earnings call transcript