honeywell automation q2 results 2020

It's closer to double digit. November 9, 2020 BSE Limited ... Sub: Outcome of the Board Meeting held on November 9, 2020- Unaudited financial results and Limited Review Report for the quarter and half year ended September 30, 2020. Thank you, Mark, and good morning, everyone. We're also investing in growth opportunities and working hard to provide innovative solutions for emerging customer needs. Lauren, let's take one more question, please. Mark Bendza -- Vice President of Investor Relations. Yes. So that's an evolution in our HBT strategy, and I think we're going to -- it's going to be that much more effective because we're going to be that much closer and more intimate with those customers and their needs. We will discuss that later on in the presentation. We expect that to continue in Q3. In specialty products, we expect strong demand for healthcare packaging and electronic materials. Good day, ladies and gentlemen, and welcome to Honeywell's second-quarter earnings conference call. When you go -- when you shift -- basically what we're doing in Q3 and Q4 is we're shifting and substituting some of the temporary actions we've taken in Q2 for permanent. And then finally, in ATR, that one is the toughest to call. This will be especially useful as buildings come back online in the midst of the COVID-19 pandemic and economic crisis as building owners are expected to focus on key performance indicators tied to enhanced occupant safety and reduced operating costs. And we will continue to rigorously enforce our code of business conduct, which makes it explicit that there is zero tolerance specifically for racial discrimination. As a result, we ended the quarter with $15.1 billion of cash and short-term investments on the balance sheet and a net debt-to-EBITDA ratio below one. 2 is, in some segments and some of our OEs, that we don't see the robust production rates exhibited in Q3. We previously announced our Phase 1 cost-reduction effort which we rapidly started implementing in the first quarter. And so those would be the main things that I would highlight: capex, repositioning cash, that pay cycle dynamic is going to play out in 4Q and we've got to work on our inventory management. Sales were down 27% on an organic basis as the steep reduction in flight hours lowered commercial aftermarket demand. These are high-return investments expected to generate triple-digit IRRs. We are rapidly addressing our end market and customer needs through innovation and mobilization of resources across the organization. Yes, I don't think airlines behaviors aren't necessarily solidified yet. With that said, the impact on customer solvency and aging receivables remains a question mark as well and a potential future risk that we're monitoring. At Honeywell, we're transforming the way the world works, solving your business's toughest challenges. With that, I'll turn the call over to chairman and CEO, Darius Adamczyk. In UOP, sales were down 25% organically driven by declines in gas processing, lower licensing and lower catalyst shipments due to weakness in the oil and gas end market. I actually think it's going to come back a bit faster than that, and it's aligned to a medical solution. - Per. This ultraviolet airplane cabin cleaning technology, is it applicable to -- or could you even sort of develop product for a commercial building application or even residential? Got it. Which is obviously the upper end of the markets. We are partnering with pharmaceutical and biotech customers in our Aclar healthcare packaging business to develop innovative packaging solutions for future COVID-19 therapies and vaccines. Honeywell Automation India Quarterly Results: Get the key information of Honeywell Automation India Q1, Q2, Q3 and Q4 results, previous Quarterly Results, Quarterly Earnings and comparison on … Additional details for our tax rate, share count and below the line expenses are included in the appendix. We are also continuing to see record-level demand for respiratory masks and other personal protective equipment. I think -- yes, we've been doing that gradually. Yes. However, we effectively managed with the strong operational execution that our stakeholders have come to expect of us. CHARLOTTE, N.C., Oct. 30, 2020 /PRNewswire/ -- Honeywell (NYSE: HON) today announced results for the third quarter of 2020, which improved sequentially versus the second quarter of 2020… When we bought Intelligrated, it was roughly 8 to $900 million business per year. Market data powered by FactSet and Web Financial Group. If you combine all these factors, and UOP, obviously, was a bit more challenged than some of our other businesses, HPS performed, I think, admirably in the quarter. Sparta Systems is a leading provider of enterprise quality management software (QMS), including a next-generation SaaS platform, for the life sciences industry. I want to thank our shareowners for their continued support of Honeywell. You made a comment about the just kind of fixed cost pressure in 3Q versus 2Q. You talked about some restructuring going perhaps in the second half, Greg. In combination, we expect Aerospace sales once again to be down more than 25% compared to the third quarter of 2019. Would that kind of be the high-level goal? Yes. Financial Results for the quarter ended March 31, 2020 (refer ‘Other Matters’ section below), which were subject to limited review by us, both included in the accompanying “Statement of Financial Results for the Quarter and Year Ended March 31, 2020 of HONEYWELL AUTOMATION Q2 Fiscal 2020 Financial Results Second quarter fiscal 2020 sales were $1,681.3 million, up 1.5 percent from $1,657.2 million in the second quarter of fiscal 2019. Orders in SPS were up approximately 90% in the second quarter led by record high bookings of $1.2 billion in Intelligrated, up 300% year over year; and over $650 million of bookings in personal protective equipment, positioning SPS well for the second half of the year and into 2021. And part two of the question, does it open sort of strategic opportunities for you down the line in safety to build on this new strength? Starting with Aerospace. Let's begin on Slide 2. The business had revenue of $7.80 billion for the quarter, compared to analyst estimates of $7.65 billion. 24, 2020 Honeywell International Inc. 2020 Q2 - Results - Earnings Call Presentation Yes. This quarter, EPS is adjusted to exclude the favorable resolution of a foreign tax matter related to our spin-off transactions in 2018. The $15 billion of cash and short-term investments compares to only $3.5 billion of commercial paper and $800 million of long-term debt coming due within the next year. So overall, pretty much aligned with our expectations. Yes. So we had a little bit of a lead-lag impact. So there's a lot of moving pieces here, and I think the ATR aftermarket component is the toughest one to call. As we highlighted in our May call, the second quarter presented significant challenges. We have launched new bottles and vials called Aclar Edge that enable ultra-high moisture barrier without the limitations of glass. In Performance Materials and Technologies, sales were down 17% on an organic basis. We also expect ongoing headwinds for our products businesses and process solutions, causing decline in field services -- in field devices and thermal solutions. CHARLOTTE, N.C., July 24, 2020 -- Honeywell (NYSE: HON) today announced results for the second quarter of 2020, which were significantly impacted by the COVID-19 pandemic and oil price volatility. Or is it we probably should expect a balance of M&A and buyback for the next six or 12 months? I mean, just to give you a little bit of a -- so let's kind of divide it up into the three segments. Aerospace segment margins contracted 510 basis points driven by lower commercial sales volumes and business mix, partially offset by cost actions to improve productivity. It wouldn't seem to me to be a material mover. I think it's tough to call at this point, and I'll tell you why. of prom. [Operator instructions] And our first question is coming from Jeff Sprague with Vertical Research. And then maybe just my one follow-on question. Honeywell To Split Automation And Control Group; Q2 Sales Tick Up. It seems to me like there could be some benefits, but I would be curious how you think about that. .ar{fill:#eb6135;stroke:#b24226;}.br,.dr{fill:none;}.br{stroke:#fff;}.cr{stroke:none;}, Honeywell Autom Standalone June 2020 Net Sales at Rs 736.23 crore, down 14.1% Y-o-Y, Honeywell Autom Standalone March 2020 Net Sales at Rs 704.26 crore, down 13.08% Y-o-Y, Honeywell Autom Standalone December 2019 Net Sales at Rs 901.20 crore, up 11.01% Y-o-Y, It's going to be mid vs largecaps in 2020; consider these 27 picks from midcap space, Honeywell Autom Standalone June 2019 Net Sales at Rs 857.03 crore, up 11.25% Y-o-Y, Bharti Infratel Q4 PAT seen up 40.2% QoQ to Rs 821 cr: Edelweiss, Gemini Communication's director Ramamurthy Ramkumar resigns, MIC Electronics board meeting held on March 31, 2017, Bharti Infratel Q3 net up by 25% at Rs 620 cr, Bharti Infratel Q3 profit seen down 5.2%, margin may be flat, Bharti Infratel Q2 net up 31% at Rs 777 cr, Bharti Infra Q2 profit seen down 9%, tenancy growth may be muted, Bharti Infratel Q3 PAT may dip 1.2% to Rs 764.8 cr: Edelweiss. The company reported a second-quarter sales decline of 19%, down 18% organic, operating margin contraction of 550 basis points, and segment margin contraction of 280 basis points, with … We think it's going to be a modest, very modest impact. In terms of business aviation aftermarket, we expect it to be slightly better than it was in Q2. And I appreciate the comments that you think you can generate better decremental margins into the back half of the year. Yes. ... For Honeywell Automation India Limited Farah Irani Company Secretary Encl: A/a . Maybe I'll start. Very, very clear. We're working on exactly that type of a solution which treats the air with ultraviolet light and obviously results in a much higher air quality than anything out there. In Aerospace, we are helping to provide a safer and healthier travel experience with ultraviolent cabin cleaning system. And then into 2021, we're going to continue to see improvement. So maybe, like, I don't know, like sequentially, like I don't know, call it, 50 million in pressure in 3Q versus 2Q --. I mean, we're aggressively investing in our capex --. How much visibility do you have on DoD being able to accelerate payments on programs? However, our diversified portfolio and significant balance sheet strength will continue to provide resilience in these uncertain times. I think it's really, really exciting because I think Honeywell and SAP have what I call complementary growth strategies. I am very proud of the part we are planning to keep people safe and healthy by providing new solutions for urgent customer needs. We generated $1.3 billion of free cash flow driven by strong customer collections despite a difficult operating environment. So we have big hopes, and double-digit growth rates are an expectation. It's building occupancy optimization. Steve Tusa — J.P. Morgan — Analyst In Aerospace, our new unmanned aerial systems business has continued to introduce new, innovative products for this exciting market and recently conducted in-flight testing of sensors that will guide urban air mobility vehicles to land without pilot intervention. So I think that that's going to be respectable performance. Where would we expect that kind of to end up based on -- and I don't mean on a furlough basis. The second quarter was one of the most challenging quarters Honeywell has ever faced. No final decision will be taken with respect to such plans without prior satisfaction of any applicable requirements with respect to informing, consulting or negotiating with employees or their representatives. Honeywell (HON) is expected to have gained from its efforts to maximize productivity and a surge in demand for healthcare products. Accordingly, we are continuing the suspension of full-year guidance until the economic environment stabilizes and we can once again give reliable and comprehensive forecasts. I mean, like, a couple of points. Andrew Obin -- Bank of America Merrill Lynch -- Analyst. HONEYWELL INTERNATIONAL INC. company earnings calendar and analyst expectations - Upcoming and past events ... Quarterly results: 2018 Q2: 2018 Q3: 2018 Q4: 2019 Q1: 2019 Q2: 2019 Q3: 2019 Q4: 2020 Q1: 2020 Q2: 2020 Q3: 2020 Q4 (e) 2021 Q1 (e) 2021 Q2 (e) 2021 Q3 (e) 2021 Q4 (e) Sales M $ Released Forecast Spread: 10 919 10 793 So for example, we're going to go to the market as a set of solutions for healthcare or hospitals, for stadiums, for airports, for office buildings, for data centers. Thanks, good morning everyone. 5/1/2020. I mean it was great strategic move on your part on respiratory protections. No, that's right. It's just -- it's because we simply can't call the timing of that perfectly. Can you actually satisfy that demand without incurring some extraordinary kind of costs around maybe overtime or --, Well, I mean, that's -- I mean, you heard Greg discuss this. Darius or Greg, though, given that some of the stuff is kind of in flight over the course of the year here, just wondering if you could give us a little bit of feel of kind of what the carryover positive effects of this Phase 1 and Phase 2 would be as we look into next year. ... Honeywell Automation & Control Solutions Business Review Presentation. And maybe you can back up a little bit. As we previewed in May, repositioning was significantly higher than the second quarter of last year, driving a $0.19 headwind below the line. And again, a lot of that depends on behavior, travel, any stimulus that may come out in the back half of the year and so forth. It's also we're expanding capacity in our sensing business for pressure sensors which go into a lot of the medical equipment that our hospitals desperately need. I mean, I think we -- it was prudent for us to take a little bit of a pause in Q2 just to see how the world evolves, how things are going to change and so on. But going forward, again, as I mentioned, the solvency risks, I think, are in front of us, not behind us. In UOP, we expect continued weakness in gas processing and lower catalyst shipments due to lower production and refining volumes. How does that look from your perspective, your perch in the post-COVID world? So all the flight hours will be better. Maybe by a few hundred basis points, but not something that can really swing things around in a major way. Q2 2020 Honeywell Earnings Conference Call Presentation. And then again, just peeking into 2021 within Aerospace and think about business jets. SPS segment margin expanded 150 basis points in the quarter driven by productivity, including cost actions, net of inflation and commercial excellence. I mean, the M&A environment is just a little bit slower just because everybody is focused on battling the crisis. Honeywell Automation India Ltd Q2 net profit at Rs. So on a GAAP basis, our second-quarter earnings per share is $1.53. We think that over time, this could be $1 billion business, just that's sort of our scope. We expect that to grow again. We do expect air transport flight hours to begin recovering from second quarter lows though sequential improvements in commercial aftermarket sales due to flight hour improvements may be offset by the impact of used serviceable material and rotation of fleets. I mean, it's not -- obviously, when -- temporary actions are pretty easy to call because you can sort of unilaterally implement that. This morning, we will review our financial results for the second quarter of 2020 and share our views on the third quarter of 2020. And our adjusted free cash flow conversion was 140%, up 40 points year over year. There's some software. In terms of some of the growth drivers, I mean, obviously, it's energy savings, it's security, it's a coherent interface so that building owners or maintainers can understand what's going on. So that's kind of how we're thinking about our math for the rest of the year. Deutsche Bank Industrials Conference Presentation. We acted quickly and responsibly to make structural changes to our cost base during the quarter. At a very high level, how do you think the post-COVID world looks for the categories you play in? Would the goal be to, kind of on the way up, leverage at -- when things normalize, kind of leverage at the -- a number that's comfortably above that? I think that we're going to be making further investments in people, further investments in capacity. Hey guys, good morning. Mark Bendza - Vice President-Investor Relations. Yes. They may not be in Q3, but I would expect the 1 -- we talked about 1.4 billion to 1.6 billion as a range with 700 million already achieved in the first half of the year. We expect these dynamics to continue in the third quarter but to improve sequentially. Just some color about really what the upside is in that kind of alliance. OK. Fair enough. When you think about OE, we actually expect it to be flat to down versus Q2 for a couple of reasons. So not expecting a material downshift from '20 to '21. We have also launched an integrated set of healthy building solutions to help building owners improve the health of their building environments, operate more cleanly and safely, comply with social distancing policies and help reassure occupants that it is safe to return to the workplace. Jeff Sprague -- Vertical Research -- Analyst. And finally, in SPS, the surge in commerce as governments enact social distancing requirements has strengthened demand for our warehouse automation business and supports continued conversion of our robust Intelligrated backlog. Those elements can change based on many factors, including changing economic and business conditions, and we ask that you interpret them in that light. Yes, no. Darius and Greg are now available to answer your questions. Beyond masks and other PPE, we are innovating to provide creative solutions for new areas of customer demand. So the steepness of that backfill is probably going to be more weighted toward the fourth quarter than the third. And that's very much part of our thinking. Andrew, I'd say -- well, first of all, it's more than masks, right? Q3 20 Guidance. Scott Davis -- Melius Research -- Analyst. The support provided by the fiscal stimulus programs deployed in the second quarter by governments globally will diminish in the third quarter, and additional stimulus is uncertain, particularly in the U.S., which complicates the visibility to true economic stability. We exited the first quarter in an incredibly strong position on the balance sheet, and we took additional actions during the quarter to further bolster our financial flexibility. Yes. So that's sort of how we're thinking about it. And we don't think that that's like decades away. Because we do think, obviously, flight hours are going to be better in Q3 versus Q2. Obviously, in Aero, they were down mid-double digits. On the call with me today are chairman and CEO, Darius Adamczyk; and senior vice president and chief financial officer, Greg Lewis. Good … Probably in the worst quarter hopefully that you ever see as CEO, you guys are putting up a headline decremental of 33%. Building owners often need to pull data from disparate sources that are not normalized, making it extremely difficult to determine the true efficiency and utilization of their portfolios. But I mean, outside of -- putting business jets aside, just looking at the large commercial stuff, I mean, how much of your business is even kind of exposed to that? Whenever you create a market, it's hard to guess at the sizing. I mean, they were significantly down. And as Greg pointed out, I think it's going to be a little bit more weighted toward Q4 than Q3. It doesn't sound like you want to answer that part of the questions --. And then again, we are investing in capital. The declines in commercial aerospace were partially offset by continued demand for U.S. government programs, including the F-35, F-15 and the Orion space program, driving 7% organic growth in the Defense & Space business. Finally, in Safety and Productivity Solutions, sales were up 1% organically driven by more than 20% growth in Intelligrated and over 100% growth in the respiratory and personal protective equipment space, particularly -- partially offset by weakness in sensing and IoT, portable gas sensing and productivity products. So you had good conversion in Q2. I am proud of the quick mobilization by employees throughout the company to rapidly innovate and provide solutions for both urgent and long-term customer needs. And second question. We had airlines adding more flights in July and August. 3/6/2007. We do think -- I'm not -- by the way, I'm not so pessimistic that I think Aero is going to be down till 2024 as I've heard some estimate. Easy fix, close the plant move to new area start all over again. Just as a follow-up, guys. Items & Tax, Promoters and Promoter Group Shareholding, - Per. 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For that kind of see how the quarter evolves the PMT backlog is up 2 % Quarterly! Your questions at the cost out, what you expect between 125 and $ billion! Always, we 're sizing the business had revenue of $ 7.65 billion demand for healthcare products,! Get through the challenges with strong operational execution that our stakeholders have come to expect of....
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