Now let's turn to Slide 8 to discuss our segment outlook for the quarter. I would think the balance of that is going to be a little bit more weighted toward the fourth quarter than the third. I expect that to be probably double that number in the back half of the year, roundabout. Probably in the worst quarter hopefully that you ever see as CEO, you guys are putting up a headline decremental of 33%. So yes, I think your point just now underscores that you're thinking clearly about the recovery and how to position Honeywell for that in terms of organic investment. No. No. 5/1/2020. When you think about OE, we actually expect it to be flat to down versus Q2 for a couple of reasons. Or is there a chance that 2021 can be flat? 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. And that would seem to be like a pretty big deal if you could actually extrapolate that. So all in all, not as bad as we anticipated. I think -- yes, we've been doing that gradually. We booked 1.2 billion this past quarter. Greg Lewis -- Senior Vice President and Chief Financial Officer. You talked about some restructuring going perhaps in the second half, Greg. We have seen a continued reduction in customer capex and opex budgets, as well as project delays and site access constraints which are impacting the engineering and licensing business in UOP and orders in projects and automation solutions in HPS. However, we have not seen a significant project cancellation to date. On the call with me today are chairman and CEO, Darius Adamczyk; and senior vice president and chief financial officer, Greg Lewis. These actions helped us protect margins, limiting our decremental margins in the quarter to only 33%. Additional details for our tax rate, share count and below the line expenses are included in the appendix. Andrew Obin -- Bank of America Merrill Lynch -- Analyst. Hi, good morning. 3/10/2020. Thank you. We are well positioned to manage through challenging times with our balanced portfolio, track record of execution and a strong balance sheet. 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. So I'm not going to give you a conversion rate because, again, that also is dependent on where things come out on the bottom line, which, as we discussed, we're not going to guide here today. 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 Honeywell Automation India Ltd Q2 net profit at Rs. Yes. Yes, so I'm not -- I can't tell you that Aero's necessarily going to have better decrementals, at least in Q3, but we are cautiously optimistic that Honeywell in total will continue to drive better decremental margins as we move from Q3 and even more so into Q4, provided -- of course, all of this is provided we don't have sort of a much broader and much more aggressive Phase 2 of COVID-19, which I guess is, depending on who you listen to, that, I guess, it's always possible in the fall. I know when we kind of talked intra-quarter, it seemed like you were a little bit more sanguine about UOP kind of recovering quicker just given miles driven should be fairly more resilient this cycle versus prior cycles. And that's why it's hard for us to give precise guidance because these things are unknowns. Honeywell International Inc. reported a 2% decline in earnings for the first quarter of 2019 as the spin-offs of the Transportation Systems business and the Homes and ADI Global Distribution business dragged net sales lower by 15%.However, the results exceeded analysts’ expectations. Warehouse automation and … I mean, I think the only -- Jeff, the only unknown is sort of timing because the permanent ones, the timing isn't perfectly predictable, and some of it may move sooner, some of it may move later. And again, we're happy with the work that we've done, particularly around receivables management. But we think that that may open up a little bit more here in the second half, and we hope to be active. The Honeywell Forge and SAP Cloud for Real Estate solution will streamline and combine operational and business data, enabling customers to benefit from building performance optimization, including reduced carbon footprint and lower energy cost, as well as improved tenant experience. 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. I think the real discontinuity here where we could see a much more dramatic improvement, which is really going to be tied to a medical solution, which is probably a vaccine, when it gets distributed. I do expect our fixed cost to be pressured sequentially in the third quarter as the permanent reductions begin to replace the benefits of the more temporary actions. And so that may create some challenges in the back half of the year if we start seeing additional bankruptcies. So overall, we finished a challenging quarter with significant top line impact from the COVID-19 pandemic. Q2 2020 Honeywell Earnings Conference Call Presentation. Darius Adamczyk -- Chairman and Chief Executive Officer. So in this environment and given -- I think that's tremendous. and promoter group), - Per. Maybe I'll start. So that's exactly why I chose the words I did because some of those temporary actions, furloughs, some of the other reductions in discretionary spend, that may start ticking up during the course of 3Q. Our Intelligrated orders were up over 300% in the quarter to $1.2 billion driven by major systems bookings and Intelligrated's backlog remains very strong, up 140% year over year to $2.1 billion, so we expect this business to perform well the remainder of the year. So there's a lot of moving pieces here, and I think the ATR aftermarket component is the toughest one to call. Yes, and that will become much, much clearer 90 days from now as we get through the third quarter. 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. We'll never tolerate racism at Honeywell. Mark Bendza -- Vice President of Investor Relations. Whenever you create a market, it's hard to guess at the sizing. And any other major swing factors in the second half that we should think about. Darius and Greg, so if you look at your restructuring programs in the 60 to 70% of structural, how would you anticipate, say, your pro forma headcount ending 2020? 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. However, we effectively managed with the strong operational execution that our stakeholders have come to expect of us. Yes. It seems to me like there could be some benefits, but I would be curious how you think about that. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express writtern permission of is prohibited. Let's turn to Slide 3 to discuss the work we've done to pivot our business, given the current environment and emerging customer needs. 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. Organic sales in Advanced Materials were down 18% driven by lower automotive refrigerant volumes due to automotive plant closures, offsetting double-digit growth in packaging and composites and electronic materials. It's closer to double digit. 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So while there are signs of stabilization in the macro economy, key end markets remain challenged and economic conditions fluid. Just as a follow-up, guys. 1, obviously, we had some carryover impact from Q1 in terms of shipments. I mean, I think -- look, I mean, 33%, given the sudden kind of stop in our business, I actually view is pretty good, given that we have aerospace exposure and oil and gas exposure. [Operator instructions] As a reminder, this conference is being recorded. See a gradual slow improvement as we move into Q3, Q4. But I don't think it's necessarily just a pure correlation. So we kind of have, think about a 50-50 or something in that kind of a split that we approximate. Maybe just the first question around the free cash flow. And even if this recession hadn't hit, we always had a challenging -- now you -- mix going into it. Get Honeywell Automation latest Quarterly Results, ... 07.08.2020. of prom. I mean, some of the products businesses were a little bit more challenged than the systems businesses. So that's been the strength for our business in Aerospace in Q2. 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. And then maybe just my one follow-on question. No, that's fine. The company reported a second-quarter sales decline of 19%, down 18% organic, operating margin No. We will discuss that later on in the presentation. So this year, if you think about back to when we originally did our outlook call early in the year for 2020, we had about a $900 million capital budget. But now we're adding hundreds, if not thousands of people in SPS, and we don't think we're done. We identify the principal risks and uncertainties that may affect our performance in our annual report on Form 10-K and other SEC filings. So as to access -- we fully drew down on the remaining term loan so as to access the liquidity of $6 billion that we had highlighted previously. 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. We are also continuing to see record-level demand for respiratory masks and other personal protective equipment. Great. Sales were down 27% on an organic basis as the steep reduction in flight hours lowered commercial aftermarket demand. But I think the first half was running in the 80s-percent wise on conversion. In Honeywell Building Technologies, sales were down 17% organically primarily driven by deferrals of product purchases in Security, Building Management Systems and Fire and softness in Building Solutions due to delays in the projects and energy businesses, some of which is a result of site access constraints due to shutdowns, particularly in India and the Middle East. Despite the challenging times, we are delivering growth in several parts of the portfolio, particularly in defense, Intelligrated and personal protective equipment. 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. Organic sales improved sequentially as the quarter progressed for the short-cycle products businesses. And I don't think it's crazy to think that we may even have a certified vaccine before the end of the year this year now, then we also have to think about the distribution timing and so on. Yes. So a little bit all over the place. ... and Waldron outlined that Honeywell would end 2020 manufacturing 25 times the number of masks it started the year with. Thank you, good morning everyone. As we expected, this quarter proved to be very difficult. 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. And then if you remember, we also did talk about at the very first guidance call early in the year that we were going to have an extra payroll cycle in 2020, and that's going to happen in 4Q. Obviously, the refining capacity wasn't as -- or demand wasn't as robust as any of us would hope here in Q2. 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. We have work to do on inventory now. We expect that to continue in Q3. But going forward, again, as I mentioned, the solvency risks, I think, are in front of us, not behind us. Could that mean, if you weren't adding capacity, you're taking out 5% of your headcount? Now let me turn it over to Greg on Slide 4 to discuss our second-quarter results in more detail, as well as to provide our views on the third quarter. In terms of capital deployment, we paid out $650 million in dividends. 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. We deployed $650 million to dividends and approximately $225 million to capex in the quarter. 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. 4/20/2007. Andrew, I'd say -- well, first of all, it's more than masks, right? So that is very much part of our thinking and part of our solution. As we highlighted in our May call, the second quarter presented significant challenges. We acted quickly and responsibly to make structural changes to our cost base during the quarter. We recognize that these steps are a starting point, not an end, and we are committed to continuing to make progress. We also expect ongoing headwinds for our products businesses and process solutions, causing decline in field services -- in field devices and thermal solutions. Honeywell Automation Colleges are located internationally throughout the globe, and deliver E-Learning courses for your training solutions.Whether you are an operator, a process or chemical engineer, a maintenance technician, or the plant manager, the Automation College provides courses that support your role for a required skillset. I'm trying to sort of think about the significance in terms of headcount based on your structural actions that you're taking and what you've called out. We believe it's important that we provide a level of precision that is commensurate with our ability to forecast in the current environment. We expect between 125 and $175 million of additional repositioning charges in the third quarter to fund our cost programs. And obviously, permanent reductions. This call and webcast, including any non-GAAP reconciliations, are available on our website at And we always knew we had a very heavy equipment mix in the business in the Q2 and Q3 of this year. Our Phase 1 cost plans delivered approximately $500 million of year-on-year benefit in the second quarter, and we completed planning for a Phase 2 plan.