I appreciate hearing all the specifics on the Honeywell's COVID responses and maybe just to pick up right where you left off, Darius, if you could, you said you wouldn't cut growth capex, but will there be any cuts to capex on the maybe maintenance capex? This was a challenging first quarter due to the rapid escalation of the COVID-19 pandemic and the OPEC-plus dispute. Mark Bendza -- Vice President of Investor Relations. As the COVID-19 pandemic started to spread, we immediately acted to maintain the continuity of our operations and keep serving our customers. Employees who return once the furlough is over may have complex feelings. But given our balance sheet, which is in great position, yeah, I think that this is an area which could be an opportunity in the second half of the year. Yes, so I can tell you that we are in active dialog with our customer base and particularly in those two segments, as you mentioned, because they are hurting. All executives, up through including senior staff and the Board of Directors, have also reduced base pay this year and eliminated or substantially lower incentive payouts in 2020.

Also to ensure our sales managers and sellers have the skills they need and best practices to virtually connect with our customers, we developed playbooks containing sales best practices and lessons drawn from our China team, who were the first to implement virtual selling techniques. Just maybe a question on Aerospace, just to circle back more of a higher level question, but just -- your installed base of equipment and given the aftermarket is so important, you've always been kind of representative of kind of the global fleet in terms of an installed base. Most recently, we announced the $6 billion two-year delayed-draw term loan agreement, which combined with our pre-existing $5.5 billion of undrawn revolving credit facilities brings our total undrawn sources of liquidity to $11.5 billion. Finally, Performance Materials and Technologies, down 5% was negatively affected by the sharp decline in oil prices stemming from the OPEC-plus dispute and the COVID-19-related disruptions with HPS down 6% and UOP down 2%. We're in a strong cash position.

Our next question will come from Andrew Obin with Bank of America. I will tell you that it's got the senior most leadership attention. Jeff Sprague -- Vertical Research Partners -- Analyst. Because when people start sitting at home and when we gradually start opening up the economies, the single most important thing that can happen for this industry is people gaining the confidence to fly again. This involves communicating about what you intend to do, why you have chosen that strategy, and how employees will be affected. Some governments require that the company contribute to a worker’s pay, although the U.S. does not. The economic fallout from the coronavirus has hit corporations large and small in Charlotte. We're doing, not only direct dialog with some of those larger customers but we're also doing a substantially deeper credit risk assessment on our whole portfolio, and in cases where we need to do things like pay-before-shipments or require cash before orders are taken, we're doing it. So obviously, our margins will kind of follow that trend.

The 2020 Honeywell Intelligrated Automation Investment Study reveals that the e-commerce (66%); grocery, food and beverage (59%); … Please go ahead. Q2 will be the bottom, we expect some level of improvement in Q3 and further in Q4. Amid the pandemic’s uncertainty, many companies, including Tesla, GAP, Macy’s, and Marriott, are turning to furloughs, creating a road to return when there is once again work to do. I mean, the end of March, in particular, started to see some pretty substantial slowdown. Okay, then we will hear from Sheila Kahyaoglu with Jefferies. And as you can see on the slide, our balance sheet and liquidity profile is significantly stronger than it was, heading into the 2008, 2009 downturn when we were more levered, had less than $6 billion of liquidity undrawn and our pension was severely underfunded. We are also taking proactive steps to preserve jobs at our manufacturing sites including shortened or stagnant work schedules to match production volumes of demand. And that's again part of the reason why we're not giving full year guidance. Maybe help us understand your assumptions about the rest of SPS in terms of safety and the rest of Productivity Solutions and whether what you're seeing already in April does tally up with that down over 5% guide. I am particularly proud of this outcome as, even in a crisis, we demonstrated that our investors can count on our reliable say-do outcome. The COVID-19 pandemic has widespread impacts on our communities, from our families, friends and neighbors to our employees, customers and suppliers. However, we have implemented rigorous business continuity processes to ensure they are proactively addressed and minimized to the extent possible. Like us on Facebook to see similar stories, Ongoing ballot counts put focus on USA's disjointed voting system, British grocer Sainsbury's is cutting 3,500 jobs and closing more than 80% of Argos stores. Yeah, I mean, the two biggest areas we're focusing on, as you can imagine, is inventory and receivables. However, we need to see a sustained increase in demand to see a more meaningful impact in the marketplace. The global spread of COVID-19 during the first quarter created operational constraints for Honeywell, our suppliers and our customers. We can't give a level of precision on this because obviously some of the cost actions, timing of that, that's still a little bit not totally within our control and -- but we're taking aggressive actions, not just with the Phase 1 that was discussed, but we're also looking in Phase 2 which is going to be deployed -- well, finalized and deployed within the next 60 days for certain. Second, we will discuss how we are working to keep our employees and the men and women on the frontline safe and healthy. I am confident we will emerge from this crisis even stronger than ever. Thank you, Darius. Additionally, we anticipate new projects will push to the right putting pressure on UOP licensing and engineering volumes in the near term. And so we're going through what you would expect a disciplined company to do. Yeah. The combination of these effects resulted in an organic sales decline of 4%. Let's do some -- another really quick follow-up just on Aero, you gave us the flight hour numbers, I mean, typically we think is some kind of multiplier to that. We exited 2019 in an incredibly strong position and we took additional actions during the first quarter to further bolster our financial flexibility as a precaution in these unpredictable times. That's been one of the things that's continue to feed our Productivity delivery over many, many years. And you know there is a little bit of a trade-off where airlines want to dispose of cash to acquire new aircraft or will they want to operate the current fleet to maintain cash flexibility and retain those cash. Let's conquer your financial goals together...faster. If I remember correctly, the lowest price of oil that I seem to recall back in the '15, '16 timeframe was about $27, $28 a barrel. I mean, I don't know where you bought back the stock this quarter, but are you -- do you have kind of capacity and are you willing that, as you get better visibility on the second half, that you could be opportunistic in the event things pull back again? Honeywell, one of the Charlotte region’s largest corporations, is making some employees take unpaid leave or reducing their hours amid the economic fallout from the coronavirus. Microsoft may earn an Affiliate Commission if you purchase something through recommended links in this article.

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

Let's begin on Slide 2. I think, as being a buyer, that's probably a good thing because I don't want to be necessarily be buying off of 2019 comps. Shares of HON closed at $132.33 on Friday. So I mean we have a lot of optionality in the second half. All rights reserved. Sandra J. Sucher is the Joseph L. Rice, III, Faculty Fellow and a professor of management practice at Harvard Business School. I mean, I think this is the time to kind of assess the situation, see what's happening, see what's going on in the medical arena, see if the markets are turning around.

Is the second quarter the bottom or is it going to get worse? Let's move on to the next one please, Savannah. Also in HBT, we have a suite of healthy building capabilities ready to deploy for customers who are focused on the health and well-being of their building's occupants.

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I want to thank our shareowners for their continued support of Honeywell.

When Honeywell implemented furloughs during the Great Recession, it exempted engineers on high-priority new product development projects and customer-facing employees. To get all of HBR’s content delivered to your inbox, sign up for the Daily Alert newsletter. How quickly are some of these businesses coming back? Okay, appreciate it.

One of our HBT employees, even turned a room in his house into a live demo center for customers and he used it to launch a product to 40 of our top European partners via video. Note that elements of this presentation contain forward-looking statements that are based on our best view of the world and of our businesses as we see them today. So it's a bit of a mixed story, but it's more or less realigned to the world, kind of, returning to some level of normalcy and it's -- it really vary throughout the world in terms of -- in some places construction is moving, others it's in a pause state. Finally, the communication should be relevant to employees and it need not be lengthy. So I think it's the one segment where it looks like you're guiding for a narrower decline, perhaps, in the second quarter year-on-year versus what we've seen in the first quarter. We implemented several precautionary measures to keep our employees safe, including travel restrictions for all employees and full-time work-from-home for nearly all of our non-manufacturing employees. And as you see flight hours return to whether it's in the business segment or air transport, you should start to see aftermarket return, probably with some lagging effects. So how are you thinking about technicality of credit risk and also the pricing? Now looking at Slide 10, let me take a moment to share some of the emerging areas of demand that we are adjusting for our customers. I mean if you think about what comes out of refinery, whether it's jet fuel, whether it's gasoline and so on, the world needs to go back to work and start functioning again because no one is flying, very few countries in the world are reopening, so there is very little gasoline and fuel consumption. Stock Advisor launched in February of 2002. Go ahead.

I mean, our backlog there is tremendous and continues to grow. Yeah, I mean the main focus area is to make sure that we follow demand very, very closely and be very reactive and fast in our actions. Yeah, could not agree more. Managers should be actively thinking about how to have a “good” furlough: one that is fair and boosts morale as much as possible. Greg Lewis -- Senior Vice President and Chief Financial Officer. ET. The Phase 2 actions should deliver approximately $200 million of 2020 benefit, so the combination of Phase 1 and Phase 2 is expected to reduce cost by 1.4 to $1.6 billion in 2020.