Applied Industrial Technologies Inc (AIT) 2024 Q1 法說會逐字稿

Greetings, and welcome to the Fiscal 2024 First Quarter Earnings Call for Applied Industrial Technologies. (Operator Instructions) As a reminder, this conference is being recorded Thursday, October 26, 2023. I would now like to turn the call over to Ryan Cieslak, Director of Investor Relations and Treasury. Please go ahead.

您好，歡迎參加 2024 財年第一季應用工業技術收益電話會議。 （操作員說明）謹此提醒，本次會議將於 2023 年 10 月 26 日星期四進行錄製。我現在想將電話轉給投資者關係和財務總監 Ryan Cieslak。請繼續。

Thanks, and good morning to everyone on the call. This morning we issued our earnings release and supplemental investor deck detailing our first quarter results. Both of these documents are available in the Investor Relations section of applied.com.

謝謝，祝大家早安。今天早上，我們發布了收益報告和補充投資者資料，詳細介紹了我們第一季的業績。這兩份文件均可在 Applied.com 的投資者關係部分取得。

Before we begin, just a reminder, we'll discuss our business outlook and make forward-looking statements. All forward-looking statements are based on current expectations subject to the certain risks and uncertainties, including those detailed in our SEC filings. Actual results may differ materially from those expressed in the forward-looking statements. The company undertakes no obligation to update publicly or revise any forward-looking statement. In addition, the conference call will use non-GAAP financial measures, which are subject to the qualifications referenced in those documents.

在開始之前，謹提醒您，我們將討論我們的業務前景並做出前瞻性陳述。所有前瞻性陳述均基於當前預期，並受到某些風險和不確定性的影響，包括我們向 SEC 文件中詳細說明的風險和不確定性。實際結果可能與前瞻性陳述中所表達的結果有重大差異。該公司不承擔公開更新或修改任何前瞻性聲明的義務。此外，電話會議將使用非公認會計原則財務衡量標準，這些衡量標準須遵守這些文件中引用的資格。

Our speakers today include Neil Schrimsher, Applied's President and Chief Executive Officer; and Dave Wells, our Chief Financial Officer. With that, I'll turn it over to Neil.

今天的演講者包括應用材料公司總裁兼執行長 Neil Schrimsher；以及我們的財務長戴夫威爾斯 (Dave Wells)。有了這個，我會把它交給尼爾。

Thanks, Ryan, and good morning, everyone. We appreciate you joining us. I'll start today with some perspective on our first quarter results, current industry conditions and our expectations going forward. Dave will follow with more specific detail on the quarter's performance, as well as our updated outlook and guidance. I'll then close with some final thoughts.

謝謝瑞安，大家早安。我們感謝您加入我們。今天我將首先對我們第一季的業績、當前的行業狀況以及我們未來的預期進行一些展望。戴夫將提供有關本季業績的更具體細節，以及我們更新的前景和指導。然後我將以一些最後的想法作為結束。

So overall, we had a nice start to fiscal 2024. We delivered strong earnings performance with EBITDA and EPS growing at respective 12% and 21% over the prior year, and hitting new record first quarter levels. This was against a more modest sales growth backdrop that was largely in line with our expectations. The Applied team did an outstanding job driving gross margin expansion during the quarter, reflecting ongoing internal initiatives, strong channel execution and freight cost management.

因此，總體而言，我們在 2024 財年有了一個良好的開端。我們實現了強勁的盈利表現，EBITDA 和 EPS 分別較上年增長 12% 和 21%，並創下第一季新紀錄水平。這是在銷售成長較為溫和的背景下實現的，這在很大程度上符合我們的預期。應用材料公司團隊在本季推動毛利率擴張方面表現出色，反映出持續的內部舉措、強大的通路執行力和貨運成本管理。

We're also beginning to see LIFO expense normalize as inflation starts to moderate and inventory levels stabilize. As highlighted in past calls, LIFO expense was a notable headwind to margins and earnings over the past several years. While we anticipate inflation to persist going forward, and there's a degree of uncertainty on the cadence of LIFO expense moving forward, we expect more normalized LIFO expense levels to provide a clearer view of the progress we continue to make along our initiatives, as well as the ongoing evolution of our business mix and industry position.

隨著通膨開始放緩和庫存水準穩定，我們也開始看到後進先出費用正常化。正如過去的電話會議所強調的那樣，後進先出費用是過去幾年利潤和收益的顯著阻力。雖然我們預計未來通貨膨脹將持續存在，並且後進先出費用前進的節奏存在一定程度的不確定性，但我們預計更加正常化的後進先出費用水平將為我們在舉措方面繼續取得的進展提供更清晰的視角，以及我們的業務組合和行業地位的不斷演變。

We also had another solid quarter of demonstrating cost control. In addition to lower variable expenses as sales growth normalizes, we continue to benefit from greater efficiencies and cost leverage following investments in talent and technology, as well as an ongoing focus across our shared services model. Our operational discipline and execution commitment remain key guiding posts as we navigate an evolving demand environment and continue to invest across our business for future growth.

我們還有另一個堅實的季度來展示成本控制。除了隨著銷售成長正常化而降低變動費用外，我們還繼續受益於人才和技術投資帶來的更高效率和成本槓桿，以及對共享服務模式的持續關注。在我們應對不斷變化的需求環境並繼續投資於我們的業務以實現未來成長的過程中，我們的營運紀律和執行承諾仍然是關鍵的指導方針。

As it relates to the broader demand backdrop, trends were largely in line with our expectations during the quarter. As we highlighted in recent quarters and consistent with macro industrial indicators, we continue to see normalization in customer activity across areas of our business. Customer production facilities have settled into a steady cadence following a heavy utilization ramp in recent years. In addition, we continue to face a headwind from slower activity across the technology sector, which we estimate negatively impacted our year-over-year organic growth by over 100 basis points in the quarter. A slower technology vertical has impacted our year-over-year sales growth for almost a year at this point. Our exposure to technology vertical has increased in recent years, both with strong organic growth and acquisition. This includes essential solutions integral to the production supply chains and infrastructure across semiconductor and electronics manufacturing, as well as data center operations.

由於與更廣泛的需求背景相關，本季的趨勢基本上符合我們的預期。正如我們在最近幾個季度所強調的那樣，並且與宏觀工業指標一致，我們繼續看到我們業務領域的客戶活動正常化。近年來，隨著利用率的大幅提高，客戶的生產設施已進入穩定的節奏。此外，我們繼續面臨整個科技產業活動放緩的不利影響，我們估計這對本季我們的年比有機成長產生了超過 100 個基點的負面影響。目前，垂直技術發展放緩已經影響了我們近一年的年比銷售成長。近年來，我們對垂直技術的接觸有所增加，有機成長和收購都強勁。這包括半導體和電子製造以及資料中心營運的生產供應鏈和基礎設施不可或缺的基本解決方案。

On a side note, orders within this vertical has stabilized, and we believe the year-over-year sales trends will begin to improve in coming quarters as comparison to these, and demand starts to rebound considering the many secular and structural tailwinds within this growth vertical.

另一方面，這一垂直領域的訂單已經穩定，我們相信，與上季度相比，未來幾季的同比銷售趨勢將開始改善，考慮到這一增長中的許多長期和結構性推動因素，需求開始反彈垂直的。

Outside of technology vertical, underlying sales growth held in well during the first quarter, against difficult comparisons. 22 of our top 30 end markets were positive year-over-year, which is relatively stable with last quarter. Growth was strongest in many of our top industry verticals and across our larger national account base. Trends were most favorable across food and beverage, lumber and wood, mining, pulp and paper, energy, utilities and refining verticals during the quarter. In addition, we continue to capture incremental growth opportunities from our industry position, local service capabilities and cross-selling initiatives. We're also seeing more benefits both directly and indirectly from reshoring activity and investments in U.S. industrial infrastructure, as well as projects tied to the ongoing energy transition. This includes demand for our technical products and solutions as the broader industrial economy supports incremental production activity from these investments.

除了技術垂直領域之外，第一季的基本銷售成長保持良好，但難以進行比較。前 30 名的終端市場中有 22 個同比增長，與上季度相比相對穩定。我們許多頂級垂直行業和更大的國民帳戶基數的成長最為強勁。本季食品和飲料、木材和木材、採礦、紙漿和造紙、能源、公用事業和煉油垂直行業的趨勢最為有利。此外，我們持續從產業地位、在地服務能力和交叉銷售措施中捕捉增量成長機會。我們也看到美國工業基礎設施的回流活動和投資以及與正在進行的能源轉型相關的項目直接和間接帶來更多好處。這包括對我們的技術產品和解決方案的需求，因為更廣泛的工業經濟支持這些投資的增量生產活動。

We're seeing these benefits across many of our businesses in the U.S., including our service center and flow control operations, as well as our core industrial and mobile fluid power business. Related sales across these areas on a combined basis were up a high single-digit percent over the prior year during the quarter. This generally aligns with readings on U.S. industrial capacity utilization, which have been relatively firm at prior cycle highs in recent months. These trends suggest that the current market easing is more reflective of a cooling in customer activity rather than a retrenchment or contraction, while growing secular spending backdrop is providing incremental support.

我們在美國的許多業務中都看到了這些好處，包括我們的服務中心和流量控制業務，以及我們的核心工業和行動流體動力業務。本季這些領域的相關銷售額合計比去年同期成長了個位數百分比。這通常與美國工業產能利用率的讀數一致，近幾個月美國工業產能利用率相對堅挺於上一個週期的高點。這些趨勢表明，當前的市場寬鬆更反映了客戶活動的降溫，而不是緊縮或收縮，而長期支出成長的背景正在提供增量支持。

Within our Service Center segment, sales increased nearly 5% organically over prior year levels on top of 20% growth during the first quarter of last year. Our core U.S. Service Center network led the way with relatively firm trends through the quarter, which is an encouraging sign considering the shorter cycle nature of our Service Center sales and related correlation with the underlying U.S. industrial production activity. We continue to see strong growth across larger national accounts and fluid power aftermarket sales, as well as benefits from our sales force effectiveness initiatives. As a reminder, these include greater use of prescriptive analytics, system investments and ongoing talent initiatives. We continue to benefit from our ability to consistently serve our customers' technical break fix needs at a scaled but localized level, while providing them direct access to solutions for their fluid power, flow control, consumables and advanced automation needs.

在我們的服務中心部門，銷售額在去年第一季成長 20% 的基礎上有機成長了近 5%。我們的核心美國服務中心網路在本季以相對穩定的趨勢引領潮流，考慮到我們服務中心銷售的較短週期性質以及與美國基礎工業生產活動的相關性，這是一個令人鼓舞的跡象。我們繼續看到更大的國民帳戶和流體動力售後市場銷售的強勁成長，以及我們的銷售隊伍有效性計畫的好處。提醒一下，這些包括更多地使用規範性分析、系統投資和持續的人才計劃。我們能夠始終如一地在規模化但本地化的水平上滿足客戶的技術故障修復需求，同時為他們提供直接訪問滿足其流體動力、流量控制、消耗品和先進自動化需求的解決方案的能力，從而繼續受益。

The progress we've made on our strategy and market position has enriched and deepened our customer relationships within our Service Center network. This is presenting a greater scope of business opportunities at all points of the business cycle, as we are increasingly viewed as a strategic solutions provider for critical industrial infrastructure.

我們在策略和市場地位方面取得的進展豐富並加深了我們服務中心網絡內的客戶關係。隨著我們越來越被視為關鍵工業基礎設施的策略解決方案提供商，這在商業週期的各個階段都帶來了更大範圍的商業機會。

We're also continuing to identify opportunities to further enhance our local service reach and accelerate our growth potential moving forward. This is reflected in the 2 bolt-on Service Center acquisitions we announced in early September, bearing distributors and can grow industries. Each company brings deep customer and supplier relationships, as well as strong technical talent that will strengthen our footprint and strategic growth potential across the U.S. Southeast and upper Northeast. We welcome both bearing distributors and can grow to the Applied team and look forward to seeing their capabilities bolster our value proposition moving forward.

我們也將繼續尋找機會，進一步擴大我們的本地服務範圍並加速我們的成長潛力。這反映在我們 9 月初宣布的 2 個補強服務中心收購、軸承經銷商和罐頭產業發展。每家公司都擁有深厚的客戶和供應商關係以及強大的技術人才，這將加強我們在美國東南部和東北部北部的足跡和策略成長潛力。我們歡迎軸承經銷商，並可以成長為應用材料團隊，並期待看到他們的能力支持我們向前發展的價值主張。

Within our Engineered Solutions segment, sales were up close to 1% organically over the prior year. Segment growth has moderated from prior quarters as expected, primarily reflecting more difficult comparisons and reduced activity across the technology end market, as highlighted earlier.

在我們的工程解決方案部門，銷售額比上一年有機成長了近 1%。正如先前所強調的，該細分市場的成長較前幾季有所放緩，主要反映了技術終端市場的比較更加困難和活動減少。

Automation sales were also slightly lower year-over-year on an organic basis during the quarter, though partially reflecting the timing of more complex engineered solutions shipments, as well as ongoing component delays and supply chain constraints. This was more than offset by positive sales growth across our off-highway mobile and industrial fluid power verticals, as well as our higher-margin process flow control products and solutions.

本季自動化銷售額在有機基礎上也比去年同期略有下降，儘管部分反映了更複雜的工程解決方案的發貨時間，以及持續的組件延遲和供應鏈限制。這被我們的非公路移動和工業流體動力垂直領域的積極銷售成長以及利潤率更高的製程流量控制產品和解決方案所抵消。

Our mobile and industrial fluid power OEM and the Engineered Solutions sales are benefiting from a healthy backlog that expanded over the past couple of years. Part of the backlog growth reflects market penetration as we continue to leverage our leading capabilities in electronic controls, IoT, electrification and autonomous systems. This includes design, engineering and software coding, and the integration of these advanced features into hydraulic and pneumatic systems. Our expertise in these areas is strengthening our value proposition as the fluid power space evolves, and is providing a robust pipeline of long-term growth opportunities as we lead the fluid power distribution space towards these next-generation platforms.

我們的行動和工業流體動力 OEM 和工程解決方案銷售受益於過去幾年不斷擴大的健康積壓訂單。積壓訂單的成長部分反映了我們繼續利用我們在電子控制、物聯網、電氣化和自主系統方面的領先能力的市場滲透率。這包括設計、工程和軟體編碼，以及將這些先進功能整合到液壓和氣動系統中。隨著流體動力領域的發展，我們在這些領域的專業知識正在加強我們的價值主張，並在我們引領流體動力分配領域走向這些下一代平台時提供強大的長期成長機會。

MRO activity and capital spending on process infrastructure also remains positive in our core flow control end markets with incremental support from backlog conversion and new business tied to our customers' decarbonization efforts. In addition, despite more muted sales growth in the quarter, overall customer interest and new business opportunities remain elevated across our automation operations with our sales funnel and presales engineering activity remaining at record highs. We're very excited about the potential of our automation platform, including an active pipeline of strategic M&A opportunities that we expect to further scale and optimize our industry position going forward.

在積壓訂單轉換和與客戶脫碳工作相關的新業務的增量支援下，我們的核心流量控制終端市場的 MRO 活動和流程基礎設施資本支出也保持積極勢頭。此外，儘管本季銷售成長更加疲軟，但我們的自動化業務的整體客戶興趣和新商機仍然很高，我們的銷售漏斗和售前工程活動仍保持在歷史新高。我們對自動化平台的潛力感到非常興奮，包括一系列積極的策略併購機會，我們希望這些機會能夠進一步擴大規模並優化我們未來的產業地位。

From a capital allocation standpoint, we remain very well positioned to drive ongoing organic investment, as well as accelerate M&A going forward. We have flexibility to return capital through other avenues if necessary. This includes a potentially more active approach to share buybacks considering our positive long-term outlook in the underlying intrinsic value we see across our company as we progress along our strategy and toward our financial objectives.

從資本配置的角度來看，我們仍然處於有利地位，可以推動持續的有機投資，並加速未來的併購。如有必要，我們可以靈活地透過其他途徑返還資本。這包括考慮到我們在推進策略和實現財務目標時對整個公司潛在內在價值的積極長期前景，可能會採取更積極的股票回購方式。

Lastly, I want to highlight our recent published ESG report, which I encourage you to spend time reviewing. We've expanded the report this year to include energy consumption detail, broader information on our sustainability solutions and initiatives and more insight into our ESG actions moving forward. We remain focused on advancing our commitment and opportunity around this important stakeholder area, both now and into the future. This includes building on our legacy of being a responsible corporate citizen by implementing greener practices in our operations, promoting diversity, fostering continuous learning across our organization and supporting our communities.

最後，我想強調我們最近發布的 ESG 報告，我鼓勵您花時間閱讀該報告。今年，我們對報告進行了擴展，納入了能源消耗詳細信息、有關我們可持續發展解決方案和舉措的更廣泛信息，以及對我們未來 ESG 行動的更多見解。無論現在還是未來，我們仍然專注於推進圍繞這一重要利益相關者領域的承諾和機會。這包括透過在我們的營運中實施綠色實踐、促進多樣性、促進整個組織的持續學習以及支持我們的社區，發揚我們作為負責任的企業公民的傳統。

At this time, I'll turn the call over to Dave for additional detail on our financial results and outlook.

此時，我會將電話轉給戴夫，以了解更多有關我們財務業績和前景的詳細資訊。

Thanks, Neil. Just another reminder before I begin. As in prior quarters, we have posted a quarterly supplemental investor presentation to our Investor site for your additional reference during the call.

謝謝，尼爾。在我開始之前再提醒一下。與前幾季一樣，我們已在投資者網站上發布了季度補充投資者演示文稿，供您在電話會議期間額外參考。

Turning now to details of our financial performance in the quarter, consolidated sales increased 3.1% over the prior year quarter. Acquisitions contributed 110 basis points and foreign currency had a positive 20 basis point impact. This was partially offset by a 1.6 percentage point headwind from 1 less selling day in the quarter. Netting these factors, sales increased 3.4% on an organic daily basis. As it relates to pricing, we estimate the contribution of product pricing on year-over-year sales growth was in the low single digits for the quarter and slightly below fiscal 2023 fourth quarter levels.

現在來看看我們本季財務業績的詳細信息，綜合銷售額比去年同期增長了 3.1%。收購貢獻了 110 個基點，外匯產生了 20 個基點的正面影響。該季度銷售日減少 1 個，導致 1.6 個百分點的逆風部分抵消了這一影響。扣除這些因素後，銷售額將按日有機成長 3.4%。由於與定價相關，我們估計本季產品定價對年比銷售成長的貢獻為低個位數，略低於 2023 財年第四季的水準。

Moving now to sales performance by segment. As highlighted on Slide 7 and 8 of the presentation, sales in our Service Center segment increased 4.7% year-over-year on an organic daily basis, when excluding the impact of foreign currency, the initial contribution from our early September acquisitions and the 1 less selling day in the quarter. Growth was strongest across our U.S. Service Center network partially offset by more modest sales trends across our international operations. Segment operating income increased 9% over the prior year, while segment operating margin of 13% was up 60 basis points.

現在轉向按細分市場劃分的銷售業績。正如簡報第 7 和第 8 投影片中所強調的那樣，在排除外匯影響、9 月初收購的初始貢獻以及 1該季度的銷售天數減少。我們的美國服務中心網路的成長最為強勁，部分被我們國際業務中較為溫和的銷售趨勢所抵銷。分部營業收入較上年成長 9%，分部營業利益率為 13%，上升 60 個基點。

Within our Engineered Solutions segment, sales increased 1.2% over the prior year quarter, with acquisitions contributing 220 basis points of growth, which was partially offset by negative 160-point headwind from the selling day impact. On an organic daily basis, segment sales increased to 0.6% year-over-year. We continue to see solid sales growth within our industrial and off-highway mobile fluid power solutions, as well as sustained customer MRO and CapEx spending into process flow infrastructure. Sales, however, within our automation operations declined 5% on an organic daily basis over the prior year, partially reflecting delayed customer shipment and install activity of Engineered Solutions, as well as the adverse impact of ongoing supply chain constraints.

在我們的工程解決方案部門，銷售額比去年同期增長 1.2%，其中收購貢獻了 220 個基點的增長，但銷售日影響帶來的 160 個基點的負面影響部分抵消了這一增長。以每日有機計算，分部銷售額較去年同期成長 0.6%。我們繼續看到工業和非公路移動流體動力解決方案的銷售穩健成長，以及客戶在流程基礎設施方面的持續維護、維修和資本支出。然而，我們自動化業務的銷售額比前一年按日計算下降了 5%，部分反映了客戶出貨和工程解決方案安裝活動的延遲，以及持續供應鏈限制的不利影響。

In addition, as mentioned earlier, segment sales trends continue to be impacted by slower activity within the technology end market, which negatively impacted segment growth by approximately 400 basis points in the quarter. Segment operating income increased 9% over the prior year, while segment operating margin of 14.2% was up 100 basis points from prior year levels.

此外，如前所述，細分市場銷售趨勢繼續受到技術終端市場活動放緩的影響，這對該季度的細分市場成長產生了約 400 個基點的負面影響。分部營業收入較上年成長 9%，分部營業利益率為 14.2%，較上年水準上升 100 個基點。

Highlighting now our gross margin performance, as detailed on Page 9 of the deck, gross margin of 29.7% increased 81 basis points compared to the prior year level of 28.9%. During the quarter, we recognized LIFO expense of $4.6 million compared to $9.1 million in the prior year quarter. This net LIFO tailwind had a favorable 41 basis point year-over-year impact on gross margins during the quarter. While directionally in line with our expectation of easing LIFO expense near term, the overall magnitude of decline was greater than anticipated, reflecting ongoing normalization of inflation and more stable inventory trends across our business.

現在重點介紹我們的毛利率表現，如簡報第 9 頁所述，毛利率為 29.7%，與前一年 28.9% 的水平相比，增加了 81 個基點。本季度，我們確認後進先出費用為 460 萬美元，去年同期為 910 萬美元。這種淨後進先出的順風對該季度的毛利率產生了 41 個基點的有利影響。雖然與我們近期減少後進先出費用的預期一致，但整體下降幅度大於預期，反映出通膨持續正常化以及我們整個業務的庫存趨勢更加穩定。

That said, our underlying gross margin performance continues to reflect solid execution and our margin expansion potential. This is becoming more transparent as LIFO expense begins to moderate. When excluding LIFO expense, gross margins were up nearly 40 basis points over the prior year and 20 basis points sequentially. We continue to manage broader inflationary dynamics well through our ongoing focus on various gross margin countermeasures and initiatives. This includes enhanced analytics, credit expense management and channel execution.

也就是說，我們的基本毛利率表現持續反映了穩健的執行力和我們的利潤擴張潛力。隨著後進先出費用開始減少，這一點變得更加透明。剔除後進先出費用後，毛利率比上年增長近 40 個基點，比上一季增加 20 個基點。透過持續關注各種毛利率對策和舉措，我們繼續妥善管理更廣泛的通膨動態。這包括增強的分析、信貸費用管理和通路執行。

We also saw a solid gross margin performance within our Engineered Solutions segment during the quarter, helping both segment profitability and mix dynamics during the quarter. As it relates to our operating costs, selling, distribution and administrative expenses increased 2.1% compared to prior year levels. SG&A expense was 18.7% of sales during the quarter, down from 18.8% during the prior year quarter. On an organic constant currency basis, SG&A expense was relatively unchanged over the prior year period.

本季我們的工程解決方案部門也看到了穩健的毛利率表現，有助於本季的部門獲利能力和混合動力。由於與我們的營運成本相關，銷售、分銷和管理費用與去年水準相比增加了 2.1%。 SG&A 費用佔本季銷售額的 18.7%，低於去年同期的 18.8%。在有機固定貨幣基礎上，SG&A 費用與去年同期相比相對沒有變動。

We continue to leverage labor costs, reflecting talent and systems investments as well as benefits from shared services deployment and operational excellence initiatives. Results also reflect the flexibility of our operating model, including inherent adjustments as sales growth normalizes, as well as our ongoing operational focus. Our ability to hold operating costs relatively flat in light of ongoing inflationary headwinds and growth investments is another highlight of our solid performance in the quarter and execution potential.

我們繼續利用勞動力成本，反映人才和系統投資以及共享服務部署和卓越營運計劃帶來的好處。業績也反映了我們營運模式的靈活性，包括隨著銷售成長正常化而進行的固有調整，以及我們持續的營運重點。鑑於持續的通膨逆風和成長投資，我們保持營運成本相對穩定的能力是我們本季穩健業績和執行潛力的另一個亮點。

Overall, sustained sales growth, gross margin management, lower LIFO expense and nice cost leverage drove a 12.3% increase in EBITDA over prior year levels during the quarter, while EBITDA margin of 12.2% increased 100 basis points year-over-year. This includes a 41 basis points year-over-year impact variability due to lower LIFO expense.

總體而言，持續的銷售成長、毛利率管理、較低的後進先出費用和良好的成本槓桿推動本季 EBITDA 比去年同期水準成長 12.3%，而 12.2% 的 EBITDA 利潤率較去年同期成長 100 個基點。這包括由於後進先出費用降低而導致的 41 個基點的同比影響變化。

We also benefited from lower net interest expense during the quarter, primarily reflecting greater interest income from higher cash balances and investment yields. Combined with a slightly lower tax rate relative to prior year levels, reported earnings per share of $2.39 was up over 21% from prior year levels.

我們也受惠於本季淨利息支出的下降，主要反映了現金餘額和投資收益率上升所帶來的利息收入增加。再加上相對於上年水準略低的稅率，報告的每股收益為 2.39 美元，比上年水準增長了 21% 以上。

Moving to our cash flow performance. Cash generated from operating activities during the first quarter was $66.2 million while free cash flow totaled $61.9 million. Compared to the prior year, free cash was up over 200%. As a reminder, the first quarter is typically our lowest cash generation quarter from a seasonal perspective. Looking ahead, we expect easy working capital trends as the year progresses, including some benefit from the conversion of work in process tied to our Engineered Solutions segment, as well as continued benefits from our working capital initiatives.

轉向我們的現金流表現。第一季經營活動產生的現金為 6,620 萬美元，自由現金流總計 6,190 萬美元。與前一年相比，自由現金增加了 200% 以上。提醒一下，從季節性角度來看，第一季通常是我們現金產生量最低的季度。展望未來，我們預計隨著時間的推移，營運資金將呈現輕鬆的趨勢，包括與我們的工程解決方案部門相關的在製品轉換帶來的一些收益，以及我們的營運資金計畫的持續收益。

From a balance sheet perspective, we ended September with approximately $360 million of cash on hand and net leverage at 0.5x EBITDA, which is below the prior year level of 1.1x. Our balance sheet is in a strong position to support our capital deployment initiatives moving forward as well as enhanced returns for all stakeholders.

從資產負債表的角度來看，截至 9 月份，我們手頭現金約為 3.6 億美元，淨槓桿率為 0.5 倍 EBITDA，低於上年 1.1 倍的水平。我們的資產負債表處於有利地位，可以支持我們的資本部署計劃向前發展，並為所有利害關係人提高回報。

Our capital deployment priorities remain consistent with organic growth and acquisitions, our primary focus areas. We remain disciplined with our M&A approach, focused on targets and valuations supporting our return requirements and strategic priorities.

我們的資本部署優先事項與我們的主要關注領域有機成長和收購保持一致。我們仍然恪守併購方法，專注於支持我們的回報要求和策略優先事項的目標和估值。

Turning now to our outlook. As indicated in today's press release and detailed on Page 11 of our presentation, we are raising full year fiscal 2024 guidance to reflect first quarter earnings performance and modest accretion from our early September Service Center acquisitions, as well as lower assumptions for LIFO expense and net interest expense. We now project EPS in the range of $9.25 to $9.80 per share based on sales growth of 1% to 4%, including a 0% to 3% organic growth assumption, as well as EBITDA margins of 12% to 12.3%. Previously, our guidance assumed EPS of $8.80 to $9.55 per share, sales growth of 0% to 4% and EBITDA margins of 11.9% to 12.1%.

現在轉向我們的展望。正如今天的新聞稿和簡報第11 頁所述，我們將提高2024 財年全年指引，以反映第一季的獲利表現和9 月初收購服務中心帶來的適度成長，以及對LIFO 費用和淨額的較低假設利息花費。目前，基於 1% 至 4% 的銷售成長（包括 0% 至 3% 的自然成長假設）以及 12% 至 12.3% 的 EBITDA 利潤率，我們目前預計每股收益將在 9.25 美元至 9.80 美元之間。先前，我們的指導假設每股收益為 8.80 美元至 9.55 美元，銷售額成長為 0% 至 4%，EBITDA 利潤率為 11.9% 至 12.1%。

Our sales outlook continues to take into consideration economic uncertainty and easing price contribution as the year plays out. We also assume ongoing moderation in broader market activity as customers continue to normalize production levels near term. In addition, based on month-to-date sales trends in October and our near-term outlook, we currently project fiscal second quarter organic sales to decline by a low single-digit percent over the prior year quarter. Please note, the second quarter represents our most difficult comparison for fiscal 2024, with prior year second quarter organic sales increasing over 21% and nearly 40% on a 2-year stacked basis.

我們的銷售前景繼續考慮到今年經濟的不確定性和價格貢獻的緩解。我們也假設，隨著客戶近期繼續恢復正常生產水平，更廣泛的市場活動將持續放緩。此外，根據 10 月迄今的銷售趨勢和我們的近期展望，我們目前預計第二財季有機銷售額將比去年同期下降個位數百分比。請注意，第二季是我們對 2024 財年最困難的比較，去年第二季有機銷售額成長超過 21%，以兩年疊加計算成長近 40%。

We are also assuming potentially more subdued scheduled maintenance activity within our core Service Center network into the seasonally slower late fall and winter months this year, as customers manage calendar year-end budget spending in an uncertain macro environment. Further, we're assuming the year-over-year technology vertical headwind to persist and sales growth in our automation operations to remain muted near term, partially reflecting the cadence of system shipments and difficult comparisons.

我們也假設，由於客戶在不確定的宏觀環境下管理日曆年末預算支出，因此我們的核心服務中心網路內的定期維護活動可能會在今年季節性放緩的深秋和冬季月份中減少。此外，我們假設同比技術垂直逆風持續存在，並且我們的自動化業務的銷售成長近期將保持低迷，部分反映了系統出貨的節奏和困難的比較。

Lastly, we expect second quarter gross margins to decline sequentially following the strong performance we saw during the first quarter. While we are encouraged by our first quarter gross margin performance, including ongoing traction with our internal initiatives, we believe it remains prudent to assume a more balanced trajectory near term considering normalizing volume trends, ongoing inflationary pressures and the potential for modest mix headwinds. Further, the trajectory of LIFO expense remains uncertain, pending greater clarity on supplier price adjustments, as well as considering the long LIFO tail impact that we could see given the random consumption nature of our SKU mix.

最後，我們預計繼第一季的強勁表現之後，第二季的毛利率將連續下降。雖然我們對第一季的毛利率表現感到鼓舞，包括我們內部計劃的持續吸引力，但我們認為，考慮到銷量趨勢正常化、持續的通膨壓力以及適度的混合阻力的可能性，短期內採取更加平衡的軌跡仍然是謹慎的。此外，後進先出費用的軌跡仍然不確定，有待供應商價格調整更加明確，並考慮到我們的 SKU 組合的隨機消費性質，我們可能會看到後進先出的長期尾部影響。

From an EBITDA margin perspective, our guidance assumes second quarter EBITDA margins to be flat to up slightly year-over-year, reflecting potential expense deleveraging on modest organic sales declines, as well as ongoing inflationary headwinds and growth investments, offset by lower LIFO expense compared to the prior year.

從EBITDA 利潤率的角度來看，我們的指導假設第二季度EBITDA 利潤率將與去年同期持平或略有上升，反映出有機銷售小幅下降以及持續的通脹阻力和增長投資所帶來的潛在費用去槓桿化，並被後進先出費用降低所抵消與上一年相比。

With that, I will now turn the call back over to Neil for some final comments.

現在，我將把電話轉回給尼爾，徵求一些最終意見。

Thanks, Dave. So to wrap up and summarize, we are encouraged by the sustained earnings growth into early fiscal 2024. We have many self-help growth and margin opportunities that we expect to manifest in coming quarters. That said, we remain cognizant of the uncertain economic backdrop near term, including the impact of higher interest rates on business investment globally, as well as increased geopolitical unrest. Combined with gradual improvement in supply chain dynamics industry-wide, our outlook continues to assume, industrial activity remains more mixed near term as customers realign production volumes to more typical seasonal patterns and take a more systematic, albeit still constructive approach to capital spending.

謝謝，戴夫。總而言之，我們對 2024 財年初的持續獲利成長感到鼓舞。我們預計將在未來幾季體現許多自助成長和利潤機會。儘管如此，我們仍然認識到近期經濟背景的不確定性，包括利率上升對全球商業投資的影響，以及地緣政治動盪的加劇。結合整個產業供應鏈動態的逐步改善，我們的展望繼續認為，隨著客戶將產量調整為更典型的季節性模式，並採取更系統化但仍然具有建設性的資本支出方法，短期內工業活動仍然更加複雜。

Importantly, the underlying fundamental backdrop within our core end markets and industry focus remains positive. This is underpinned by ongoing positive feedback from our customers, including planned growth investments, as North American manufacturing activity, infrastructure spending and industrial capacity continues to expand. From greater equipment maintenance activity and system modernization to required investments in automation and IoT, our comprehensive portfolio of technical solutions, engineering talent and local service support are increasingly critical to our customers. This is evident in the resilience we see in our core U.S. Service Center network where booking activity is holding up well into the early part of our second quarter despite normalizing end market demand.

重要的是，我們的核心終端市場和產業焦點的基本面背景仍然是正面的。隨著北美製造業活動、基礎設施支出和工業產能的不斷擴大，我們客戶的持續積極回饋（包括計劃的成長投資）支撐了這一點。從更大的設備維護活動和系統現代化到自動化和物聯網所需的投資，我們全面的技術解決方案、工程人才和本地服務支援對我們的客戶越來越重要。這從我們在美國核心服務中心網路中看到的彈性中可以明顯看出，儘管終端市場需求正常化，但預訂活動一直持續到第二季​​初期。

In addition, sales funnel activity across our automation business continues to grow with our increasing scale and application expertise, a significant value proposition for our customers and suppliers. This is unlocking cross-selling opportunities and the development of new solutions and tools that we expect to supplement our automation addressable market and growth potential for years to come.

此外，隨著我們規模和應用專業知識的不斷增加，我們自動化業務的銷售漏斗活動持續成長，這對我們的客戶和供應商來說是一個重要的價值主張。這釋放了交叉銷售機會以及新解決方案和工具的開發，我們預計這些解決方案和工具將補充我們未來幾年的自動化可尋址市場和成長潛力。

Further feedback from our team and customers highlight growing demand from our core automation solutions, including accelerated adoption of collaborative and autonomous mobile robots, to address structural labor shortages and optimize workflows. We're investing in industry-leading engineering talent, premier supplier technologies and production capacity to optimize our automation growth potential long term.

我們團隊和客戶的進一步回饋凸顯了我們的核心自動化解決方案日益增長的需求，包括加速採用協作和自主移動機器人，以解決結構性勞動力短缺和優化工作流程。我們正在投資業界領先的工程人才、一流的供應商技術和生產能力，以優化我們的自動化長期成長潛力。

Combined with an active M&A pipeline, we expect our automation platform to scale significantly over the next several years and be accretive to our organic growth profile as we continue along our company evolution. We're also excited by the growth potential we see developing around modernizing fluid power systems. Our capabilities and strategy and electronic control integration is providing a strong foundation to develop new and advanced hydraulic and pneumatic solutions. This will be critical to addressing our OEM customers' needs around energy efficiency, autonomous systems and electrification of industrial and mobile equipment. We have a strong industry position in this area, given our advanced and centralized engineering capabilities, investments in research and development and broad scale across the U.S.

結合活躍的併購管道，我們預計我們的自動化平台將在未來幾年內大幅擴展，並隨著我們公司的不斷發展而促進我們的有機成長。我們也對圍繞現代化流體動力系統開發的成長潛力感到興奮。我們的能力、策略以及電子控制集成為開發新型、先進的液壓和氣動解決方案提供了堅實的基礎。這對於滿足 OEM 客戶在能源效率、自主系統以及工業和行動裝置電氣化方面的需求至關重要。鑑於我們先進且集中的工程能力、研發投資以及在美國的廣泛規模，我們在這一領域擁有強大的產業地位。

We also see steady growth across our process flow control operations, reflecting the longer cycle nature of this area of our business, as well as expanding growth opportunities supporting the energy transition and a growing portfolio of business tied to the hygienic space. Combined with the potential rebound across the technology sector, recent stabilization in broader industrial macro data points and easing comparisons beginning in the second half of fiscal 2024, we see a favorable sales growth setup building in coming quarters and into 2025. However, we're mindful of broader economic dynamics that can potentially influence the timing and impact of these various tailwinds near term.

我們也看到整個流程控制業務的穩定成長，反映出我們業務領域的較長週期性質，以及支持能源轉型的不斷擴大的成長機會以及與衛生領域相關的不斷增長的業務組合。結合整個科技產業的潛在反彈、最近更廣泛的工業宏觀數據點的穩定以及從 2024 財年下半年開始的寬鬆比較，我們預計未來幾個季度和 2025 年將形成有利的銷售成長格局。請注意更廣泛的經濟動態，這些動態可能會影響近期各種順風車的時機和影響。

Further, as we've shown in the past, our business model and operational discipline provides the playbook and flexibility to easily adjust if need be, while simultaneously generating significant cash flow. Our balance sheet and liquidity provide a strong support to opportunistically pursue ongoing organic investment and strategic M&A in the current environment as well as other capital deployment that could augment returns for all stakeholders going forward.

此外，正如我們過去所展示的那樣，我們的業務模式和營運紀律提供了劇本和靈活性，可以在需要時輕鬆調整，同時產生大量現金流。我們的資產負債表和流動性為在當前環境下機會主義地追求持續的有機投資和策略併購以及其他資本部署提供了強有力的支持，這些資本部署可以增加所有利益相關者未來的回報。

Once again, we thank you for your continued support. And with that, we'll open up the lines for your questions.

我們再次感謝您一直以來的支持。至此，我們將開放您的提問專線。

(Operator Instructions) And our first question comes from David Manthey with Baird.

（操作員說明）我們的第一個問題來自 David Manthey 和 Baird。

Thanks very much for the overview. And Neil, that was a great outlook on what we should expect as we look down the path here. So I'll refocus more on company-specific items. Let's talk about the low leverage on the balance sheet right now. There's always so many outlets for cash flow, and we trust that you will force an acquisition of course, but share repurchase, maybe with the stock being somewhat then is a little problematic. Is there anything that you can do organically? Neil, you mentioned the automation area. Is there a more aggressive strategy that you can take there that would drive some attractive shareholder returns for cash invested internally?

非常感謝您的概述。尼爾，當我們展望這裡的道路時，這是我們應該期待的美好前景。因此，我將更多地關注公司特定的項目。現在我們來談談資產負債表上的低槓桿率。現金流的出路總是有很多，我們相信你當然會強制收購，但股票回購，也許股票有點問題。有什麼可以有機做的嗎？尼爾，你提到了自動化領域。您是否可以採取更積極的策略，為內部投資的現金帶來一些有吸引力的股東回報？

Yes. So Dave, I would say we are taking those steps and actions. I think we've talked about -- we've organically opened in some geographies, we have capital investment to augment or increase facility space to allow greater project throughput and velocity. We'll be doing things as we assemble these groups and operations in technology systems and investments that we believe are really going to allow engineering speed and velocity to occur. And that those engineering -- application engineering teams can leverage one another's work and also have engineering standards that can allow us to go faster. And as we touched on in the remarks, it remains a focus area for acquisitions along with the rest of our engineered solutions area. So we think we're going to have numerous opportunities to deploy capital into the business and continued profitable growth.

是的。所以戴夫，我想說我們正在採取這些步驟和行動。我想我們已經討論過——我們在一些地區有機地開業，我們有資本投資來擴大或增加設施空間，以提高項目吞吐量和速度。當我們在技術系統和投資中組裝這些團隊和營運時，我們將採取行動，我們相信這些確實將允許工程速度和速度發生。這些工程－應用工程團隊可以利用彼此的工作，並且擁有可以讓我們走得更快的工程標準。正如我們在評論中提到的，它與我們的其他工程解決方案領域一樣，仍然是收購的重點領域。因此，我們認為我們將有很多機會將資本部署到業務中並實現持續的獲利成長。

Yes. And if memory serves, you've opened a couple of these greenfield locations. I'd be interested in just getting an update there. And along those lines, Neil, I'm wondering, is it something where you can really lean into it? I know you're looking at M&A to augment that space as well. But could you open 10 a year? I mean, is that outside the realm? It seems like a very rapidly growing area. People are interested in -- you have these secular themes lining up on labor and so forth. So any thoughts there that you can share with us?

是的。如果沒記錯的話，您已經開設了幾個這樣的新地點。我有興趣在那裡獲取更新。沿著這些思路，尼爾，我想知道，這是你真正可以投入的嗎？我知道您也在考慮透過併購來擴大這一空間。但你能一年開10個嗎？我的意思是，那是在境界之外嗎？這似乎是一個成長非常迅速的領域。人們感興趣的是──你有這些關於勞工等的世俗主題。有什麼想法可以跟我們分享嗎？

Yes, I would say I don't know that there's a specific number at this stage we feel like we have to. Obviously, we've proven that we can. We like the results that we're getting with the teams and the collaboration, the solutions that we're taking forward in that. And so we'll continue to evaluate what our best entry points into those geographies. But even with our served footprint today, which is growing and expanded, we're able to reach into others with especially strategic accounts, customer-driven, where they're looking for solutions and we've had success with them in other geographies, they're pulling us into those areas. And so we're having success. So we touched on it. We think in time, this becomes 10% of our sales. And if we think about the growing addressable market that's $10 billion and perhaps getting higher, there's more we can do. There's more we will do in this arena.

是的，我想說我不知道現階段有一個具體的數字，我們覺得我們必須這樣做。顯然，我們已經證明我們可以。我們喜歡我們與團隊和協作所取得的成果，以及我們在這方面提出的解決方案。因此，我們將繼續評估進入這些地區的最佳切入點。但即使我們今天的服務足跡不斷增長和擴大，我們仍然能夠接觸到其他具有特別策略客戶、以客戶為導向的客戶，他們正在尋找解決方案，而我們已經在其他地區與他們取得了成功，他們正在把我們拉到這些地區。所以我們取得了成功。所以我們觸及了它。我們及時考慮，這將成為我們銷售額的 10%。如果我們考慮到不斷成長的潛在市場（價值 100 億美元），而且可能還會更高，那麼我們可以做的還有更多。我們將在這個領域做更多的事情。

And you're seeing some of that forward aspect of the incremental organic investment read through, Dave, and the higher CapEx, kind of still 27% to 29% figure in terms of the full year outlook on CapEx spend. So at the end of the day, just not terribly capital intensive, too, as you think about greenfielding some of these sites, leveraging our service center footprint and the investment that goes in behind that. So continue to step up the organic investment. But once again, just kind of fits the nature of this business and not as capital intensive, so not big dollars committed to that.

戴夫，你會看到增量有機投資的一些前瞻性方面，以及更高的資本支出，就全年資本支出前景而言，仍佔 27% 至 29%。因此，歸根結底，當您考慮綠地開發其中一些站點，利用我們的服務中心足跡及其背後的投資時，資本密集度也不是很高。因此繼續加大有機投資。但再一次，這恰好符合這項業務的性質，而不是資本密集型，因此不需要投入大量資金。

Our next question comes from Chris Dankert with Loop Capital.

我們的下一個問題來自 Loop Capital 的 Chris Dankert。

I guess, hoping to dig in a little bit more on gross margin here. I mean, really impressive beat in the quarter versus what we were looking for. I mean, can you kind of maybe parse apart what was really driving that? I mean, was it freight? Was it price cost? Is it just kind of the internal execution you've been going through here. Any other color you can kind of give us on what really drove gross margin in the first quarter here?

我想，希望能在這裡進一步挖掘毛利率。我的意思是，與我們所尋求的相比，本季的表現確實令人印象深刻。我的意思是，你能分析一下真正推動這現象的原因嗎？我的意思是，這是貨運嗎？是價格成本嗎？這只是你在這裡經歷的一種內在執行嗎？您還能告訴我們什麼其他因素真正推動了第一季的毛利率嗎？

Yes. Beyond the 41 basis point year-over-year benefit from LIFO that we broke out, you're still up 40 basis points year-over-year. So Q1's typically our seasonally softest gross margin quarter as some rebate programs, et cetera, reset. But continued really solid execution across all aspects, thinking about some of our margin enhancement initiatives focused on freight, freight recovery, kind of the work around operations excellence there, really all the levers hitting there. So nice work by the team, despite Engineered Solutions, growth being more modest, nice contribution still from the mix standpoint there and that we talked about it, segment gross margins and obviously, the EBITDA margin is up very nicely. So even on that lower volume, driving a nice mix contribution there.

是的。除了我們公佈的 LIFO 帶來的同比 41 個基點的收益之外，您還比去年同期增長了 40 個基點。因此，隨著一些回扣計劃等的重置，第一季通常是我們季節性毛利率最疲軟的季度。但在各個方面繼續保持真正紮實的執行力，考慮到我們的一些利潤提高舉措，重點是貨運、貨運恢復、圍繞卓越運營的工作，實際上所有的槓桿都在發揮作用。團隊的工作非常出色，儘管有工程解決方案，成長更加溫和，從混合的角度來看仍然做出了不錯的貢獻，我們談到了這一點，細分毛利率，顯然，EBITDA 利潤率增長得非常好。因此，即使在較低的音量下，也能做出很好的混音貢獻。

So really, that 40 basis points year-over-year operational improvement, 20 basis points sequentially, there's no one factor that just sticks out kind of price cost still are neutral, as we think about how that's reading through the P&L and just really continued solid work by the team and thinking through all the levers, continuing to focus on the pricing for the value that we're driving on the Engineered Solutions side of the business. And like I said, really hitting on all cylinders on that front.

因此，實際上，營運改善同比增長 40 個基點，連續增長 20 個基點，沒有任何一個因素能夠表明價格成本仍然是中性的，因為我們會考慮如何透過損益表來解讀這一點，並且真正繼續下去團隊的紮實工作和對所有槓桿的思考，繼續專注於我們在業務的工程解決方案方面推動的價值的定價。就像我說的，真的全力以赴。

Yes, Chris, I'd say, I'm pleased with the execution and the performance in it. I think Dave covered from a LIFO standpoint, we would expect similar, perhaps the $4.5 million to $5 million in the next quarter as we think. I do -- a couple of things didn't line in the quarter. So if I think about it for the second quarter, I think perhaps we may be down sequentially in that side, perhaps more at the 29.5% or so in that area. But still good, strong performance as we'll operate in the second quarter.

是的，克里斯，我想說，我對其中的執行和表現感到滿意。我認為戴夫從後進先出的角度來看，我們預計下個季度的收入可能會達到類似的水平，也許是 450 萬美元到 500 萬美元，正如我們所想的那樣。我確實如此——本季有幾件事與此不一致。因此，如果我考慮第二季的情況，我認為我們在這方面可能會連續下降，也許會下降到 29.5% 左右。但由於我們將在第二季度運營，業績仍然良好、強勁。

Got it. Again, really nice execution by the team. I guess to move to Service Center here, I know you don't typically comment on the month, but maybe just any comments on October to date there. I mean, is Service Center kind of down in line with the overall guide for kind of low single-digit pullback here in 2Q?

知道了。再說一遍，團隊的執行力非常好。我想搬到這裡的服務中心，我知道您通常不會對本月發表評論，但可能只是對 10 月份迄今為止的任何評論進行評論。我的意思是，服務中心是否符合第二季低個位數回檔的整體指南？

As we think about it in the quarter performance, I think the Service Center segment has performed well. And so we think about flattish overall. We got to have -- in October, we got to have Service Center's probably being a little better than that at this stage.

當我們考慮季度業績時，我認為服務中心部門表現良好。所以我們考慮整體扁平化。我們必須－在十月份，我們必須讓服務中心可能比現階段好一點。

Got it. And if you indulge just one more. I'm curious, just on your backlog in Engineered Solutions has been pretty elevated. Is that kind of back to normal levels here? Have we seen any cancellations? Just any commentary on backlog would be great.

知道了。如果你再沉迷一次。我很好奇，只是你們工程解決方案的積壓工作已經相當多了。這是回到正常水平了嗎？我們有看到任何取消嗎？只要對積壓的任何評論都會很棒。

I'd say, overall, backlog, as we think about it, we're still pleased, we think back pre-pandemic to those levels as "historical norms". We're still going to be operating at a 2x plus from a backlog standpoint. So that's encouraging for us as we think forward. In the quarter, we did have some conversion of that as expected. We would expect further of that in the side. But teams are doing a nice job. And of how we're working to engineer new solutions and add to that anytime that -- including in technology, if there's a slowing or a little bit -- it allows teams to work on solutions. But we're encouraged, especially in industrial, off-highway mobile that backlog, that level and what we're doing to convert. So it still remains at a good healthy level.

我想說，總的來說，積壓的問題，當我們想到它時，我們仍然很高興，我們將大流行前的水平視為“歷史規範”。從積壓的角度來看，我們的營運速度仍將是原來的兩倍以上。因此，當我們展望未來時，這對我們來說是令人鼓舞的。在本季度，我們確實按照預期進行了一些轉換。我們期待在側面進一步實現這一點。但團隊做得很好。以及我們如何努力設計新的解決方案並隨時添加 - 包括技術方面，如果有放緩或一點點 - 它允許團隊致力於解決方案。但我們受到鼓舞，特別是在工業、非公路移動領域，積壓、水平以及我們正在做的轉換。所以它仍然保持在一個良好的健康水平。

And to answer to the [cancellation] question. Yes. No, you typically wouldn't see cancellations in that Engineered Solutions piece of the business given the nature of that business. You may see some rephasing of OEM shipments based on demand, but that's pretty modest. Really that 2x backlog just continues to be driven by kind of strong order trends. And we are still seeing ongoing supplier constraints that are impacting adversely some of that shipment timing and [getting] those projects out the door. So continuing to see that impact -- the Engineered Solutions side of the business. Some of that reading through to the lower growth for the quarter.

並回答[取消]問題。是的。不會，鑑於該業務的性質，您通常不會看到該業務的工程解決方案部分被取消。您可能會看到 OEM 出貨量根據需求進行一些調整，但這相當有限。事實上，2 倍的積壓只是繼續受到強勁訂單趨勢的推動。我們仍然看到供應商持續受到限制，這些限制對部分發貨時間和這些項目的實施產生了不利影響。因此，請繼續關注這種影響——業務的工程解決方案方面。其中一些解讀為該季度的較低成長。

(Operator Instructions) And our next question comes from Ken Newman with KeyBanc Capital Markets.

（操作員說明）我們的下一個問題來自 KeyBanc Capital Markets 的 Ken Newman。

Maybe we can just start off with the automation demand and just how you're thinking about the cadence of that coming back in the back half. Just touching on the last comment and Neil, some of your comments in your prepared remarks, I think you talked about some timing of more complex shipments maybe being pushed out a bit. Can you just expand on that a little bit? I mean, what is still tight specifically in those orders? And then again, just how do you think about the cadence of those shipments for that vertical into the second half?

也許我們可以從自動化需求以及您如何看待後半段回歸的節奏開始。只是談到最後的評論和尼爾，你在準備好的評論中的一些評論，我認為你談到了一些更複雜的發貨時間可能會被推遲一些。能稍微擴充一下嗎？我的意思是，這些訂單中哪些具體內容仍然緊張？話又說回來，您如何看待下半年該垂直領域的出貨節奏？

Yes. So as I think about it -- kind of the -- first, I'll start with kind of what's holding up, 2 things. At times, it can be small components, small things, holding it up would be cabling or connectors or interface PLCs in that area that can create. And then sometimes these projects are part of a larger project that the customer is working on. So those project managers will work their extended -- [gain] charts on managing that project. And if something else that we're not related to extends out, it impacts that window or that timing.

是的。因此，當我思考這個問題時，首先，我將從有兩件事開始。有時，它可能是小組件、小東西，支撐它的是該區域中可以創建的電纜、連接器或接口 PLC。有時這些專案是客戶正在進行的更大專案的一部分。因此，這些專案經理將使用他們的擴展圖表來管理該專案。如果與我們無關的其他事情延伸出來，它就會影響那個窗口或那個時間。

And so as I think on some of those projects, we're going to see them move beyond our Q2 into the start of the calendar year, perhaps in some of those. So as I think about overall for the back half, we would expect growth to resume in our automation business in that side. But if I look at that window, it could set up that it might be similar in Q2 from a demand or a sales standpoint.

因此，正如我對其中一些項目的看法，我們將看到它們從第二季度進入年初，也許在其中一些項目中。因此，當我考慮下半年的整體情況時，我們預計這方面的自動化業務將恢復成長。但如果我看一下這個窗口，從需求或銷售的角度來看，第二季可能會類似。

Got it. Is there a way to, from a high level, kind of parse out the magnitude of what is more -- is it evenly split between these small components versus big project timing? Or is one a larger impact than the other?

知道了。有沒有一種方法可以從高層次分析出更多內容的重要性──這些小元件與大專案時間安排之間是否平均分配？或者其中一個的影響比另一個更大？

Well, it's hard to parse out each contributing factor to that, is it external with projects or inputs or suppliers or components in that. But the teams are working it. We cover it in our operating reviews with them in the side. So we feel like we have a good line of sight. And the other that's encouraging by the amount of sales collaboration and what the sales engineers are doing and the advanced work by the application engineers, I think it's building a good funnel of conversion opportunities. We touched on the setup to address needs and problems around labor and material movement. So for collaborative robots and mobile, but we're also seeing it in vision opportunities of how that can positively impact quality and performance plus address some labor challenges that could exist from a customer's operations standpoint.

好吧，很難解析出其中的每個影響因素，它是外部的專案、投入、供應商還是元件。但團隊正在努力。我們在營運回顧中對此進行了介紹，並將其放在一邊。所以我們感覺我們的視線很好。另一個令人鼓舞的是銷售協作的數量、銷售工程師正在做的事情以及應用工程師的先進工作，我認為它正在建立一個良好的轉換機會漏斗。我們談到了解決勞動力和物質流動方面的需求和問題的設置。對於協作機器人和行動裝置，我們也看到了它如何對品質和性能產生積極影響的機會，並解決從客戶營運的角度可能存在的一些勞動力挑戰。

So hey, we remain encouraged in that. Can't control perfectly the timing on some of this project release in the side. But again, we like where we're at. We know as we go into the second half and especially look forward into '25, we're going to expect continued outsized outgrowth contributions from the automation space.

所以，嘿，我們對此仍然感到鼓舞。無法完美控制一些專案發布的時間表。但同樣，我們喜歡我們現在的處境。我們知道，當我們進入下半年，特別是展望 25 年時，我們預計自動化領域將繼續帶來巨大的成長貢獻。

Last quarter, I think you gave us -- and sorry, if I missed this, but I think you gave us just -- you sized the opportunity funnel in automation. I think there were over 100 open projects last quarter. Did you provide an update to that funnel this quarter? Or are you willing to?

上個季度，我認為您給了我們——抱歉，如果我錯過了這一點，但我認為您給了我們——您確定了自動化領域的機會漏斗。我認為上季有超過 100 個開放項目。本季您是否提供了該管道的更新？或者你願意嗎？

No, I didn't. I would say it's -- in a similar realm -- higher in that -- as it would go along. So there's some consistency in that. Obviously, many of those projects are moving to the next stage of the funnel, plus teams are looking in areas to add to that. So if I draw the comparison to last quarter, it would be greater.

不，我沒有。我想說的是——在類似的領域——更高——因為它會繼續下去。所以這有一定的一致性。顯然，其中許多項目正在進入漏斗的下一階段，而且團隊正在尋找可以補充的領域。因此，如果我與上個季度進行比較，結果會更好。

Understood. Maybe if I could squeeze one more in. Obviously, it seems like the biggest headwind -- the only headwind really that you saw this quarter was primarily in the technology sector outside of the tough comps. But I was curious if you could just give any kind of other end market information on where you've seen any outsized deceleration, if any, in some of the other verticals you serve?

明白了。也許如果我能再擠進去一個。顯然，這似乎是最大的逆風——你在本季度看到的唯一逆風主要是在艱難的競爭之外的技術領域。但我很好奇，您是否可以提供任何類型的其他終端市場信息，說明您在您服務的其他一些垂直領域中在哪些地方看到了任何過大的減速（如果有的話）？

Yes. So we touched on technology. I think the only other one that could be presenting some headwinds, aggregates that we'd see in some areas around the construction and building materials on that side. I think the stack up, as we talked about on the top 30 industries, all in all, favorable, right? As it compared to last quarter and many of those that are in the top half of the 30 doing well. But along with the technology, I think that aggregate side on -- ones that would be declining year-over-year.

是的。所以我們談到了技術。我認為唯一的另一個可能會帶來一些阻力，我們會在那邊的建築和建築材料周圍的某些區域看到聚合。我認為，正如我們在前 30 個行業中所討論的那樣，總而言之，這是有利的，對嗎？與上季相比，30 強中前半部的許多公司都表現良好。但隨著科技的發展，我認為整體情況將逐年下降。

And there are no further questions at this time. I'll turn the call back to you for closing remarks.

目前沒有其他問題。我會將電話轉回給您進行結束語。

I just want to thank everyone again for taking the time to join us today, and we look forward to talking with you throughout the quarter. Thanks.

我想再次感謝大家今天抽出時間加入我們，我們期待在整個季度與您交談。謝謝。

That does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your lines.

今天的電話會議到此結束。我們感謝您的參與，並請您斷開線路。