Darius Thank and you, good everyone. morning
May challenges. quarter call, second As presented we the highlighted in significant our
However, a our we expect effectively have strong managed operational execution with come stakeholders us. of to that
declined the markets volumes of drove end PPE Substantially and we spread PMT globe. our most in points lower growth margin second sales our segment XX% orders while businesses. the as warehouse delivered strong and across contraction, automation organically sales pandemic effects quarter, sales For the the of XXX both challenged by in in Aerospace and basis
in to X of the of brought approximately half. delivered quarter, year-on-year us cost million phase actions in million the $XXX benefit approximately Our which first savings $XXX
presentation. XXXX. the delivered adjusted and the savings down into We per of we will $XXX XX% in later in repositioning discuss to in of million earnings XX, We as $X over funded drive on cost that share XXXX year-over-year quarter
partially the As below tax $X.XX we than benefit $X.XX to A year, last due lower second by compared year, the share last previewed headwind line. offset count. significantly resulted $X.XX of in effective a adjusted higher a EPS in to repositioning EPS higher quarter rate was May, of driving headwind
matter quarter resolution tax the to foreign to This our is transactions adjusted XXXX. of related in EPS exclude a favorable spin-off
earnings a on share XX. is our per quarter second $X basis, GAAP So
cash in was customer environment a despite conversion up XX generated by operating appendix free You EPS adjusted the $X.X will We cash find flow of this billion year-over-year. a of strong our XXX%, points driven free our of difficult bridge collections, and flow presentation.
of terms capital deployment, in paid dividends. In million $XXX we out
million We the over $XXX also in year. the invested prior million from expenditures in up quarter, capital $XX
efforts. included flow the this challenging second can a the of rigor CapEx expect that tranches release with the Overall, quarter, to execute, and to from was the cash produce very masks costs NXX to continue support and managing but Coronavirus are and first discipline Honeywell. Our making in our investments you quarter we we
impacted transport, flight to original turn a equipment the organic steep slide sales reduction broadly. in basis commercial build the can our to down XX% OE let's and as lowered Now in five Aerospace, XXX in slowdown segment with were addition discuss impact rates results. air more commercial aftermarket Starting MAX we hours on and an demand, in
Our U.S. offset aerospace our space air continued a business down F-XX, business transport aviation driving in organically down growth Orion and were organically business in aftermarket government by defensible organic was the demand The partially for the was quarter. X% program XX% commercial aftermarket including and in space business. programs the F-XX, XX% declines
catalyst volume thermal in the solutions down to result technology, UOP the building improve year. sales by and sales Aerospace XXX in solutions, building to access segment will of XX% an XX space us sales sequentially oil businesses. due to improve For declines backlog throughout instruments. management by short end business, double energy Technologies, some giving Honeywell down improve in softness businesses, XX% declines excellence a offset due In were which expanded and of is In site by volume sales shutdowns, and weakness of Organic that sales driven in by gas in and and fire cost organically, Process and to half second the were driven partially XX% in due sales growth business which were and class digits, the licensing lower smart margins Materials HPT product products sales quarter volumes. commercial solution offset gas quarter, particularly lower In continue mix constraints energy processing, security, contracted the projects in for field actions on points deferrals up points quarter, products, segment progressed down Performance driven driven productivity, down the India organic lower delays to to organically, the the the finished second basis deliver systems purchases lower driven East. and and confidence by primarily productivity. and commercial by and Middle the cycle defensive XX% impact basis. building actions and margin were market. shipments including organically, the as basis of of
second quarter declined UOP. As volatility the -- expected, COVID-XX price we saw to the in led the new bookings in oil HPS in and lower and as second half orders significantly
project month sales to Flooring However, automotive refrigerant improve began plant XXX segment in productivity. quarter, growth lower date. end market class plants by and packaging, cancellations not were by we contracted to composites by the into double-digit have driven partially materials Organic automotive second materials. a to sales XX% significant margins improved quarter, sequentially basis of automotive lower impact seen and volumes volumes down to closures, actions reopen. the PMT automotive the advanced by the due driven and sales as product electronic throughout points offsetting offset
bookings personal over Intelligrated solutions, equipment productivity weakness in and Intelligrated, and Orders portable respiratory in growth sales high up of actions the for and were products. up SPS half record year SPS Finally, commercial year, by X% the the second cost margin and particularly Sensing productivity XXXX. by the personal space, inflation in basis were SPS and gas by led into sensing year-over- million quarter, $X.X offset partially and segment of over of safety in than in excellence. in positioning expanded organically XX% XXX protective in driven more second bookings billion approximately equipment, productivity in growth well up protective XXX% by XX% net $XXX of XXX% the IoT, and including driven quarter, points in
from with the So pandemic. finished impact significant line quarter challenging we the COVID-XX top overall,
HBT grew several and and overall, able businesses at and limit in including management prudent we defense, and Intelligrated cost commercial to margins excellence, due PP&E we and However, in were to decremental expand SPS. XX% margins
six curtailment in we slide implementing to in which and board pay, reduced expenses, efforts cancellation cost previously the phase of included increases turn schedules, started discuss phase enterprise, actions one our announced let's the We cost of more reductions. Now, merit discretionary This census quarter. work our to management across reduction XXXX rapidly first first of detail. permanent targeted executive and reduced a
of approximately billion expand the costs phase of $X.X census During is is actions in combination to million result target $X.X million June. the approximately high in we reductions, the actions began range the first XXXX $X.X second is phase X $XXX which X we billion benefit, us by preparation of XXXX. of billion original executing our one half, fixed end phase completed of phase year-over-year permanent quarter, of also phase so to we The expected by class cost billion. and a toward which to that The pushing deliver to in $XXX $X.X X to reduce reduced
temporary fixed the the I in reductions $XXX be million deployment our replace of permanent aggressive the serving the and sequentially of funds the do expect the actions. in repositioning half begin quarter first benefits $XXX as million Our us well. quarter more costs to is in to pressured third
We the our discuss sheet, to long and flexibility. $X XXXX, billion on reduced seven slide replacing financing, during balance issued in In the portion of quarter balance we to position with $X a billion maturities term debt XXXX $X and in additional second financial to our we exited turn an we billion. quarter bolster XXXX first actions the instruments from incredibly took commensurately, quarter the sheet term let's which strong loan the further Now and in and liquidity.
we drew remaining so term -- fully previously. that of to access access had the to highlighted as as loan we billion So $X on the liquidity down
and and with only we $XX.X short ratio of within compares commercial result, term ended a of net to year. paper investments $XXX balance $XX due and of a of debt-to-EBITDA term X billion and $X.X the cash short sheet, million cash to coming billion term the quarter below investments on billion As debt the long next
to deployed substantially in we commitment repurchase on were recall, quarter. preservation first and $XXX XXXX second in you'll $XXX As in CapEx we We the quarter, the million share approximately million our quarter. focused to completed and liquidity dividends the
CapEx on will and $XXX continue earlier. While including mentioned approximately full be half, to additional growth to in year we growth the we capital investments Darius second expect CapEx being prudent fund million, overall, the
the approximately the committed at year with the to second of holding share a remainder We are for minimum. count flat quarter
We become in M&A repurchases of share to are opportunities open second if available. and the investments deploying half to capital attractive the year,
On of growth. are be will topic M&A the of building maintaining this well we and opportunities pleased welcome M&A, to to Head quarter for president positioned responsible are new and Global Emily as Honeywell of to our McNeil development accelerate acquisition vice that Honeywell our strategically corporate robust pipeline who senior
to excited on have very board. are Emily We
we slide outlook of has quarter. economic few to quarters turn limits We segment can provide in stabilizes. and be suspension provide our environment, provided the until with precision inputs we continuing our will to next of current we ability unpredictable guidance let's a that are circumstances. will forecasts. the and eight that the Now in forecast comprehensive under And commensurate the year May. current level and the the full therefore our of once again The continue give to important believe Accordingly, we set is discuss reliable to for it's that visibility same environment we
key of third several are in closely We uncertainty quarter. the watching drivers
significant well used OpEx the the also volatility the CapEx the as budgets flight are and at stability. yet in stable industry PMP programs aging our said, risk in third environment a solvency by future be the difficult stimulus for particularly wild dynamics From governments this that materials, traceability to remains monitoring. an Together serviceable on which geopolitical quarter, is business U.S. receivables in ahead. market card. quarters and and customer globally, an complicates a the to the that we're economic visibility oil in by which the potential travel continues COVID a the support and as predict air hours, increasing is The will additional With and the mark uncertain as impacts environment. diminish including end through set affect and fluid still stage The potential on infections impact well the very lockdowns quarter and challenging deployed are First stimulus and additional could the point. for of retirements, and question foremost, second macroeconomic perspective, not fiscal severity drivers price provided these have and
aerospace, begin significantly Those we lows. second it, transport business. COVID-XX to to due which So hours expect sales materials, with aftermarket below our commercial impact to as recovering used starting will be quarter from We hours flight flight do and hour best we impact improvements aftermarket by expect offset of global remain levels, pre see flight improvements rotation far of fleets. sequential commercial serviceable the in may their
commercial, transport, lower OEM original be equipment business to and by build will business to rates due Our demand impacted air economic lower slowdown. the jet continue
government budgets combination, intact, of the that than In once will defense XX% compared remain third again expect we space. be growth XXXX. anticipating to We to expect more down in are and quarter defense we and sales continued aerospace
and budgets project the are in site onto prices, as reduction customer oil projects in engineering linked well coupled automation a from and and HPS. constraints, and oil solutions stemming with CapEx licensing the and in We've put our has orders businesses pressure volatility gas. delays to access UOP which uncertainty the impacting Moving continued of on a business continued in and PMT, combination seen to and pandemic OpEx global as
and thermal products, declines our process solutions for causing and headwinds field businesses in devices on-going in services expect -- solutions. field also We
growth and and and processing expect volumes. cattle in sites production likely customer will East. global continue year-over-year we in the As in, XXXX up shipments healthy India, quarter. over with have we UOP, lower these in entered In convert especially the to a to XX% Access And still projects HPS, projects for quarters. next due weakness continued previously was discussed, remain few Middle backlog which we expect regions, including high to for second gas lower to of mega we refining
in right to Specialty more levels. expect that and Altogether, auto progress on Additionally, strong production materials, automotive and we driven as continued volatility resulting plants environment customer in to to by the impacting the In quarter in do anticipate we and building will PMT products. delayed, OEM capacity management paused, to current solutions current advanced be expect recover continue expect licensing are projects product verticals non-residential improve engineering. the to to of markets. pressure quarter, customers sales and new projects, Within long delaying of principally contracts refrigerant cycle UOP, -- third may HBT, be gas and of continue regions building packaging purchases than the electronic non-essential fire timing products down increase the and will access products, third some XXXX, materials. while XX% deferring in on we volumes expect oil of the spending, the healthcare and we security, we sites demand compared to have multiple in In for push and
We quarter, in but improve these the to expect to third sequentially. dynamics continue
we Darius SAP building and buildings, addition, partnership as opportunities. growth for see our In mentioned which our new healthy solution emerging with
of We backlog. expect the And sales XX% compared demand third continued in our our e-commerce more SPS, social be down strengthened distancing in and automation quarter to enact conversion business, XXXX. the Intelligrated for robust requirements surge governments support as finally has of warehouse than to HPP
were and backlog systems, $X.X very remains driven $X.X billion, up strong, XXX% orders bookings XXX% quarter Intelligrated over year-over-year Our to by the up billion. in to Intelligrated major
So this the business we expect of to remainder for year. well the perform
record the and up and see respiratory eye, protective triple continuing strengthen second face, clothing for gloves orders are were would level demand consecutive quarter, respiratory, We to equipment. categories. personal head, also for other PBE the masks digits
result. the in see products overall where the to in is personal XXXX, sales third at good macro quarter. IoT, SPS to than also digits a third our total expect all-time other on sensing SPS we conditions X% backlog compared expect protective including Our gas to to an grow and digits pressure put businesses less very backlog continue now equipment quarter sensing The productivity at declines Overall, and high. triple we and single is SPS of
in the economy, are stabilization So economic while signs and conditions there end markets remain challenged macro key fluid. of
opportunities balance, We the expect the sales in again versus the XX% portfolio, for down we challenges have and year. to company be more than both prior but on
quarter in second million repositioning the repositioning will in the We $XXX third expect repositioning second the cash putting additional $XXX programs. in to of free our charges half and in fund between pressure million our cost year, drive quarters increase and cash This outflows the of third on flow. higher
tax for below details count, line expenses are to the share like and in I'd Additional included our Darius. turn rate, the back appendix. to that, With call the
