Applied Industrial Technologies Inc (AIT) 2025 Q1 法說會逐字稿

Welcome to the fiscal 2025 first quarter earnings call for Applied industrial technologies. My name is Angela and I'll be your operator for today's call. At this time. All participants are in listen-only mode later, we will conduct a question and answer session. If you wish to ask a question at that time, please press star follow beta number one on your telephone keypad. Prior to asking a question, lift your handset to ensure the best audio quality. If at any time during the conference call, you need to reach an operator, please press star then zero.

歡迎參加應用工業技術 2025 財年第一季財報電話會議。我叫安琪拉，我將擔任您今天通話的接線生。此時。稍後所有參與者都處於只聽模式，我們將進行問答環節。如果您當時想提問，請按電話鍵盤上的星號和第一個測試版。在提問之前，請拿起聽筒以確保獲得最佳音訊品質。如果在電話會議期間的任何時間您需要聯絡接線員，請按星號，然後按零。

Please note that this conference is being recorded. I will now turn the call over to Ryan Cieslak, Director of Investor Relations and Treasury Ryan. You may begin.

請注意，本次會議正在錄製中。我現在將把電話轉給投資者關係和財務總監瑞安·西斯拉克（Ryan Cieslak）。你可以開始了。

Okay. Thanks Angelo 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. 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 certain risks and uncertainties including those detailed in our sec filings.

好的。感謝安吉洛，也向通話中的每個人早安。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。在開始之前，請提醒一下，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，包括我們在美國證券交易委員會備案文件中詳細說明的風險和不確定性。

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.

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。

In addition, the conference call will use non GAP financial measures which are subject to the qualifications referenced in those documents.

此外，電話會議將使用非 GAP 財務措施，這些措施須遵守這些文件中引用的資格。

Our speakers today include Neil Schrimsher, applies President and Chief Executive Officer and David Wells, our Chief Financial Officer, but that I'll turn it over to Neil.

今天我們的演講者包括總裁兼執行長 Neil Schrimsher 和我們的財務長 David Wells，但我將把它交給 Neil。

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.

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。

David will follow with more specific detail on the quarter's performance as well as our updated outlook and I'll then close with some final thoughts.

大衛將詳細介紹本季的業績以及我們最新的展望，然後我將提出一些最後的想法。

So first a few high level comments on first quarter results overall, our applied team continued to make significant progress on our strategic initiatives during the quarter as we position the company for above market growth and margin expansion in the future.

因此，首先對第一季整體業績進行一些高層評論，我們的應用團隊在本季度繼續在我們的策略舉措上取得重大進展，因為我們將公司定位為未來高於市場的成長和利潤率擴張。

Organic daily sales declined 3% over the prior year but exceeded our expectations on encouraging September trends.

每日有機銷售額比上年下降 3%，但超出了我們對 9 月令人鼓舞的趨勢的預期。

We also had a record first quarter of free cash generation that nearly doubled from the prior year.

我們第一季的自由現金產生量也創歷史新高，比前一年幾乎翻了一番。

As expected margin trends were impacted by comparisons and sales declines early in the quarter as well as adverse mix dynamics and the impact of growth investments.

正如預期的那樣，利潤率趨勢受到本季度初的比較和銷售下降以及不利的組合動態和成長投資的影響的影響。

Our margin guidance for fiscal 2025 remains unchanged and we expect margin trends to improve for the balance of the year.

我們對 2025 財年的利潤率指引保持不變，我們預計今年剩餘時間的利潤率趨勢將有所改善。

Netting these factors EBITA came in largely in line with our expectations during the quarter. While EPS benefited from lower tax rate, interest in other income and reduced share count from recent buybacks. So a good start to the year and that we look to build on going forward, digging more into the sales trends in the quarter. Broader in market demand remain generally mixed. This is consistent with industrial macro data points in recent months and resulted in subdued customer activity early in the quarter.

扣除這些因素後，本季的 EBITA 基本上符合我們的預期。雖然每股盈餘受益於較低的稅率、其他收入的利息以及最近回購帶來的股票數量減少。這是今年的良好開端，我們希望在此基礎上繼續深入研究本季的銷售趨勢。大盤的需求大致上仍是喜憂參半。這與近幾個月的工業宏觀數據一致，並導致本季初的客戶活動減弱。

That said the quarter finished strong with several encouraging trends of note organic average daily sales during September were seasonally strong and relatively unchanged compared to the prior year.

儘管如此，該季度仍表現強勁，有幾個令人鼓舞的趨勢，即 9 月的有機平均每日銷售額季節性強勁，且與前一年相比相對沒有變化。

While the improvement in September came from several areas. It was led by stronger shipment and order trends in our engineered solutions segment sales in our US service center operations also improved in September on stronger break fix activity and ongoing benefits from our sales process initiatives.

9月的改善來自幾個方面。這是由於我們的工程解決方案部門的出貨量和訂單趨勢強勁，我們美國服務中心業務的銷售在9 月份也有所改善，這得益於更強勁的故障修復活動以及我們的銷售流程計劃的持續效益。

This was partially offset by sustained weakness in machinery in markets including across our fluid power, mobile OEM customers.

這被包括我們的流體動力、移動 OEM 客戶在內的市場機械持續疲軟所部分抵消。

When looking at our TOP30 in markets, '13 were positive over the prior year which is slightly below the '14 reported last quarter growth was strongest across food and beverage, primary metals, transportation aggregates and technology during the quarter.

在查看我們的 TOP30 市場時，‘13’較上一年呈正增長，略低於‘14’報告的上季度食品和飲料、初級金屬、運輸總量和技術領域最強勁的增長。

This was offset by declines in machinery, oil and gas, lumber and wood, fabricated metals, pulp and paper, rubber. And plastics and utilities.

這被機械、石油和天然氣、木材和木材、金屬製品、紙漿和紙張、橡膠的下降所抵消。還有塑膠和公用事業。

So while showing signs of an initial recovery, the demand backdrop remains bifurcated and somewhat uneven.

因此，儘管顯示出初步復甦的跡象，但需求背景仍然存在分歧且有些不平衡。

This is reflected in some easing in early fiscal second quarter sales trends following September's outperformance organic sales through the first '16 business days of October are down by a mid single digit percent over the prior year.

這反映在第二財季初期的銷售趨勢有所緩和，繼 9 月份有機銷售表現優異之後，到 10 月份的前 16 個工作日比上年同期下降了個位數百分比。

We estimate this includes some modest disruption from recent hurricanes in the southeast.

我們估計這包括最近東南部颶風造成的一些輕微破壞。

We would also highlight the timing of system and solution shipments and our engineered solutions segment can vary month to month and with nearly a week left in the month in us, election uncertainty now front and center, we hesitate to extrapolate too much from initial October trends but remain mindful of ongoing crosscurrents.

我們還要強調系統和解決方案的發貨時間，我們的工程解決方案部分可能每個月都有所不同，而且這個月還剩下近一周，選舉的不確定性現在成為首要問題，我們不願從10 月的最初趨勢推斷太多但仍需留意持續存在的逆流。

Digging more into each of our segments. Average daily sales in our service center segment declined 1.4% organically over prior year levels on top of stack growth of 25% the prior two years, consistent with last quarter spending on general MRO capital maintenance projects was more muted as customers continue to tightly manage operational expenses that said sales trends across our core us service center network held in relatively well with September billing seasonally strong on improved brake fix and general MRO activity.

深入挖掘我們的每個細分市場。我們的服務中心部門的平均每日銷售額較上年水平有機下降1.4%，而前兩年堆疊增長25%，與上季度一致，由於客戶繼續嚴格管理運營，一般MRO 資本維護項目的支出更加溫和。

We saw ongoing health across larger national accounts and fluid power aftermarket sales.

我們看到更大的國民帳戶和流體動力售後市場銷售持續健康發展。

Our service center team also continues to benefit from our service capabilities, local inventory investments and ongoing sales initiatives as well as greater cross selling opportunities.

我們的服務中心團隊也繼續受益於我們的服務能力、本地庫存投資和持續的銷售計劃以及更多的交叉銷售機會。

Investments in technology and predictive analytics are continuing to enhance our business intelligence and sales force productivity.

對技術和預測分析的投資正在繼續提高我們的商業智慧和銷售人員的生產力。

Over the past five years, sales per us service center associate have increased over 7% on a compounded annual basis. We've also enhanced our local market position through bolt on acquisitions made over the past year which are augmenting growth in new and underpenetrated vertical markets while supplementing our margin mix overall, our service center team is in a strong position moving forward, particularly as in market demand, re accelerates within the short cycle and break fix focused area of our business.

在過去五年中，美國服務中心員工的銷售額年複合成長率超過 7%。我們也透過過去一年進行的補強收購增強了我們的本地市場地位，這些收購增強了新的和滲透不足的垂直市場的成長，同時補充了我們的整體利潤組合，我們的服務中心團隊在前進中處於有利地位，特別是在市場需求，在短週期內重新加速，並打破修復我們業務的重點領域。

While hard to measure, we believe there's some pent up technical m demand across various end markets following subdued activity and deferred capital maintenance over the past year, this could release following the US election and if interest rates continue to moderate.

雖然難以衡量，但我們認為，由於過去一年的活動低迷和資本維護推遲，各個終端市場存在一些被壓抑的技術性需求，這種需求可能會在美國大選後以及利率繼續放緩的情況下釋放。

In addition, our technical expertise across critical capital equipment and production processes combined with our locally focused distribution network is a powerful value proposition for our suppliers and customers. As secular trends around reshoring infrastructure, technical labor shortages and energy efficiency gain further momentum within our engineered solutions segment sales declined 6% organically over the prior year, consistent with last quarter. And our expectations segment sales continue to be impacted by ongoing destocking headwinds and softer in market demand across fluid power, mobile OEM customers flow control and automation sales were also lower over the prior year, reflecting softer trends early in the quarter.

此外，我們在關鍵資本設備和生產流程方面的技術專業知識與我們專注於本地的分銷網絡相結合，為我們的供應商和客戶提供了強大的價值主張。隨著圍繞基礎設施回流的長期趨勢、技術勞動力短缺和能源效率在我們的工程解決方案領域獲得進一步的動力，銷售額比去年有機下降 6%，與上個季度一致。我們預計該細分市場的銷售將繼續受到持續的去庫存逆風的影響，並且流體動力、移動OEM 客戶流量控制和自動化領域的市場需求疲軟，銷售額也較上年同期下降，反映出本季度初的疲軟趨勢。

On a positive note segment sales and orders strengthened as the quarter progressed including seasonal strength in component and system sales. During September of note segment orders in the first quarter increased by mid single digit percent organically over the prior year.

積極的一面是，隨著本季度的進展，該部門的銷售和訂單有所增強，包括組件和系統銷售的季節性強勁。 9 月份，第一季票據市場訂單較上年同期有機增長了個位數百分比。

With the trend strengthening each month, this was led by double digit order growth across automation and technology focused fluid power customers which combined represent over 20% of our segment cells, sales funnel activity and channel commentary are increasingly positive across these higher growth areas of our business following an extended period of reduced activity. The past couple of years, flow control orders were also up year over year in the quarter. As we continue to see healthy project demand tied to decarbonisation and data center investments. Overall, we remain measured with our expectations. As one quarter does not create a trend.

隨著每月趨勢的加強，自動化和以技術為重點的流體動力客戶的訂單增長呈兩位數增長，這些客戶合計占我們細分市場的20% 以上，銷售漏斗活動和渠道評論在我們的這些高成長領域變得越來越積極。過去幾年，流量控制訂單在本季也較去年同期成長。我們繼續看到與脫碳和數據中心投資相關的健康項目需求。總體而言，我們仍然衡量我們的預期。因為一個季度並不能創造趨勢。

These dynamics taken together are nonetheless an encouraging sign for our higher margin engineered solutions segment.

儘管如此，這些動態對於我們利潤率較高的工程解決方案領域來說仍然是一個令人鼓舞的跡象。

We believe segment momentum could build in the second half of fiscal 2025 as customers reengage capital spending interest rates potentially ease further and we continue to leverage growth investments tied to our strategy overall, we're encouraged by positive signs and potential catalysts developing across both our segments. We are continuing to invest and position teams to be fully prepared to serve our customers and suppliers as the next phase of growth unfolds.

我們相信，隨著客戶重新參與資本支出，利率可能進一步放鬆，細分市場的勢頭可能會在2025 財年下半年形成，而且我們將繼續利用與我們整體戰略相關的增長投資，我們對積極跡象和跨部門發展的潛在催化劑感到鼓舞。我們將繼續投資並配置團隊，以便為下一階段成長的發展做好充分準備，為我們的客戶和供應商提供服務。

This includes ongoing investments in engineering talent, digital sales tools and e-commerce capabilities.

這包括對工程人才、數位銷售工具和電子商務能力的持續投資。

We also have expanded into new facilities and invested in advanced tooling and machining capabilities across our engineered solutions segment.

我們還擴建了新設施，並在整個工程解決方案領域投資了先進的工具和加工能力。

We've modernized technology systems across our distribution centers while also updating, conveying systems and logistics equipment.

我們對整個配送中心的技術系統進行了現代化改造，同時也更新了輸送系統和物流設備。

Our automation platform and footprint is much larger today than it was entering the prior up cycle. This will supplement our potential in this high growth area of our business. As adoption of specialized robotics and machine vision accelerates while demand for aftermarket and service support starts to emerge from these next generation automation technologies.

如今，我們的自動化平台和占地面積比進入之前的升級週期時大得多。這將補充我們在這一高成長業務領域的潛力。隨著專業機器人和機器視覺的採用加速，而這些新一代自動化技術開始出現對售後市場和服務支援的需求。

Further, we've invested in fluid power engineering and system build capabilities to serve growing secular demand tied to the modernization of industrial and mobile equipment.

此外，我們還投資於流體動力工程和系統建構能力，以滿足與工業和行動設備現代化相關的不斷增長的長期需求。

We're also beginning to leverage A I through our ongoing investments around sales process, ar and AP automation and recruiting.

我們也開始透過圍繞銷售流程、AR 和 AP 自動化以及招募的持續投資來利用人工智慧。

These are just some of the many investments we've made to supplement our growth capacity, speed to market and operating leverage going forward and then lastly nearly $2 billion in balance sheet capacity including over 500 million of cash on hand. Our available capital puts us in a strong and advantaged position to accelerate our growth and margin potential moving forward.

這些只是我們為補充我們的成長能力、上市速度和未來營運槓桿而進行的眾多投資中的一部分，最後是近 20 億美元的資產負債表容量，包括超過 5 億手頭現金。我們的可用資本使我們處於強大且有利的地位，可以加速我們的成長和利潤潛力的發展。

This includes both organic investments and accretive acquisitions that further extend our technical service capabilities, enhance our business mix and reinforce our competitive mode.

這包括有機投資和增值收購，進一步擴展我們的技術服務能力，增強我們的業務組合併加強我們的競爭模式。

The evolution of our portfolio through both Greenfield investments and acquisitions in recent years has been highly intentional and disciplined. It's been a critical driver of our ability to become a faster growing higher margin and more cash generative business while driving a meaningful increase in our returns on capital.

近年來，我們的投資組合透過綠地投資和收購的演變是高度有意和嚴格的。這是我們能夠成為更快成長、利潤率更高、現金產生能力更強的業務的關鍵驅動力，同時推動我們的資本回報率大幅提高。

We remain committed to this focused and returns based approach that centers on serving our customers most critical industrial assets and processes more completely.

我們仍然致力於這種專注且基於回報的方法，其核心是更全面地為客戶最關鍵的工業資產和流程提供服務。

Our M&A pipeline is active across both segments with our primary focus on bolt on and midsize targets where we can create significant shareholder value. Long term, we also have flexibility to return capital through other avenues. This includes share buybacks, considering our positive long term outlook and the underlying intrinsic value we see across our company as well as ongoing focus on growing our ordinary dividend. Moving forward overall, we're targeting greater capital deployment in fiscal 2025 that aligns with our return requirements and strategy at this time. I'll turn the call over David for additional detail on our financial results and outlook.

我們的併購管道在這兩個領域都很活躍，我們主要專注於可以創造顯著股東價值的固定目標和中型目標。從長遠來看，我們還可以靈活地透過其他途徑返還資本。這包括股票回購，考慮到我們積極的長期前景和我們在整個公司看到的潛在內在價值，以及持續關注增加普通股息。總體而言，我們的目標是在 2025 財年進行更大的資本部署，以符合我們目前的回報要求和策略。我將把電話轉給大衛，以獲取有關我們財務業績和前景的更多詳細資訊。

Thanks Neil. Just as a reminder before I again as in prior quarters, we have posted a quarterly supplemental investor presentation to our investor site. This is for your additional reference as we recap our most recent quarter performance.

謝謝尼爾。正如前幾季一樣，再次提醒我，我們已在投資者網站上發布了季度補充投資者簡報。當我們回顧最近一個季度的業績時，這可供您額外參考。

Now the details of our financial performance in the quarter, consolidated sales increased 0.3% over the prior year quarter, acquisitions contributed 200 basis points while the one extra selling day year by year in the quarter had a positive 160 basis point impact.

現在來看看我們本季財務表現的細節，綜合銷售額比去年同期成長 0.3%，收購貢獻了 200 個基點，而本季逐年增加的一個銷售日產生了 160 個基點的正面影響。

This was partially offset by a negative 30 basis point impact from foreign currency translation.

這被外幣換算帶來的 30 個基點的負面影響部分抵消。

These factors sales decreased 3% on an organic daily basis.

這些因素的銷售額每日自然下降 3%。

As it relates to pricing, we estimate the contribution of product pricing on year to year sales growth was approximately 100 basis points for the quarter. And in line with our expectations, turning now to sales performance by segment as highlighted on slides, seven and eight of the presentation sales in our service center segment declined 1.4% year to year on an organic daily basis. When excluding a 0.7% positive impact from acquisitions. The positive 1.6% impact from the difference in selling days and a negative 50 basis point impact from foreign currency translation, derogating sales decline in the quarter was primarily driven by softer MRO spending and the deferral of capital maintenance projects early in the quarter which was concentrated across local accounts.

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約為 100 個基點。與我們的預期一致，現在轉向幻燈片中突出顯示的按細分市場劃分的銷售業績，我們服務中心細分市場的七和八個演示銷售額按日有機率同比下降 1.4%。排除收購帶來的 0.7% 的正面影響時。銷售天數差異帶來的1.6% 的正影響和外幣換算帶來的50 個基點的負影響，抵消了本季度銷售下降的影響，這主要是由於MRO 支出疲軟以及本季度初資本維護項目的推遲，這些項目主要集中在跨本機帳戶。

Sales outside the US were also weaker over the prior year though partially offset by continued growth across national accounts and fluid power MRO sales in the US.

美國以外地區的銷售也較上一年疲軟，但部分被美國國民帳戶和流體動力 MRO 銷售的持續成長所抵消。

From a vertical market standpoint software demand was most notable across machinery, pulp and paper and oil and gas markets. Partially offset by ongoing growth within food and beverage, primary metals, utilities and transportation segment. EBITA decreased 2% over the prior year. While segment EBITA margin of 13.2% declined 36 basis points over the prior year within our engineered solutions segment sales increased 0.2% over the prior year quarter. With acquisitions contributing 4.7 points of growth on an organic daily basis. Accounting for the difference in selling days, segment sales decreased 6.1% year over year.

從垂直市場的角度來看，機械、紙漿和造紙以及石油和天然氣市場的軟體需求最為顯著。部分被食品和飲料、初級金屬、公用事業和運輸領域的持續成長所抵消。 EBITA 比上年下降 2%。雖然我們的工程解決方案部門的 EBITA 利潤率為 13.2%，但比去年同期下降了 36 個基點，但我們的工程解決方案部門的銷售額比去年同期增長了 0.2%。收購為每日有機成長貢獻了 4.7 個百分點。考慮到銷售天數的差異，分部銷售額較去年同期下降6.1%。

Consistent with last quarter, the year to year decline was primarily driven by a high single digit percent decline in fluid power sales and to a lesser extent, softer automation and flow control sales as mentioned earlier, who in power sales continue to be adversely impacted by lower demand across off highway mobile OEM customers partially balanced by stable trends across industrial implant applications and solutions as well as improving demand and technology related and markets.

與上季一致，年減主要是由於流體動力銷售出現高個位數百分比下降，以及在較小程度上，如前所述，自動化和流量控制銷售疲軟，電力銷售繼續受到以下因素的不利影響：非公路移動OEM 客戶的需求下降，部分被工業植入物應用和解決方案的穩定趨勢以及相關需求和技術及市場的改善所平衡。

In addition, while lower year by year for the full quarter, both automation and flow control sales returned to positive organic growth during September segment. EBITA decreased approximately 2% over the prior year. While segment EBITA margin of 14.2% was 37 points below prior year levels, largely reflecting the expense to leveraging on sales declines and ongoing growth. Positioning in the quarter, moving to gross margin performance as highlighted on page 9 of the deck, gross margin of 29.6% decreased '10 basis points compared to the prior year level of 29.7%.

此外，雖然整個季度的銷售額逐年下降，但自動化和流量控制銷售額在 9 月恢復了正向有機成長。 EBITA 比上年下降約 2%。部門 EBITA 利潤率為 14.2%，比去年水準低 37 個百分點，主要反映了利用銷售下降和持續成長所產生的費用。從本季的定位來看，毛利率表現如簡報第 9 頁所強調的那樣，毛利率為 29.6%，與去年同期的 29.7% 水準相比下降了 10 個基點。

During the quarter, we recognized life expense of $2 million compared to $4.6 million in the prior year quarter.

本季度，我們確認人壽費用為 200 萬美元，而去年同期為 460 萬美元。

This net life of tailwind had a favorable '24 basis point year to year impact on gross margins overall. The underlying trend in the quarter was largely in line with our expectation for some near term gross margin. Easing into early fiscal 2025.

順風的淨壽命對整體毛利率產生了有利的「24 個基點」同比影響。本季的基本趨勢在很大程度上符合我們對近期毛利率的預期。進入 2025 財年初。

This partially reflects tougher comparisons including prior year, first quarter, rebates favorability in our service center segment as well as life of expense favorability during the fourth quarter of last year.

這部分反映了更嚴格的比較，包括去年、第一季、我們服務中心部門的回扣優惠以及去年第四季的費用優惠期限。

In addition, mix was unfavorable both year to year and sequentially primarily reflecting outpaced national account growth and lower engineered solution sales scrapping freight costs were also slightly higher in the quarter but are expected to normalize going forward.

此外，同比和環比的組合都不利，主要反映了國民帳戶增長速度超過了國民帳戶增長，而工程解決方案銷售下降，本季度報廢貨運成本也略有上升，但預計未來將正常化。

We estimate price/cost was relatively neutral to the quarter's performance as it relates to operating costs, selling distribution and administrative expenses increased 3.7% compared to prior year levels.

我們估計價格/成本對本季業績相對中性，因為它涉及營運成本、銷售分銷和管理費用，與去年水準相比增加了 3.7%。

D&A expense was 19.3% of sales during the quarter, up from 18.7% during the prior year quarter on an organic constant currency basis. SD and A expense was up 80 basis points over the prior year period. This includes an unfavorable 150 basis point impact from higher deferred compensation costs and one extra payroll day compared to the prior year.

以有機固定匯率計算，D&A 費用佔本季銷售額的 19.3%，高於去年同期的 18.7%。 SD 和 A 費用比上年同期成長 80 個基點。這包括與前一年相比，更高的遞延薪資成本和一個額外的薪資發放日帶來的 150 個基點的不利影響。

As a reminder, fluctuations of deferred compensation costs in D&A are primarily driven by market values of investments tied to our nonqualified deferred compensation plan.

需要提醒的是，D&A 中的遞延薪酬成本的波動主要是由與我們的不合格遞延薪酬計劃相關的投資的市場價值所驅動的。

There's a corresponding offset to these fluctuations in other income and expense which we report below net interest, expense and income.

其他收入和支出的這些波動也有相應的抵消，我們在淨利息、支出和收入下方報告。

In addition, we had some expensive averaging as expected. Given the sales decline in the quarter on an organic basis, adjusting for the M&A impact currency fluctuations, the extra payroll day and deferred comp accounting impact SD and a expense was down slightly year over year.

此外，正如預期的那樣，我們進行了一些昂貴的平均計算。鑑於本季銷售額有機下降，調整併購影響貨幣波動、額外發薪日和遞延補償會計影響 SD 和費用較去年同期略有下降。

We remain prudent with cost measures and have continued to fund in process strategic growth or in investments in light of firming demand. The past couple of months overall, the organic sales decline in the quarter combined with the aforementioned gross margin and Sdn dynamics resulted in reported EBITA declining 3.3% year over year. While EBITA margin of 11.7% decreased 44 basis points.

我們對成本措施保持審慎態度，並根據需求的堅挺繼續為正在進行的策略成長或投資提供資金。總體而言，過去幾個月，該季度的有機銷售額下降，加上上述毛利率和 Sdn 動態，導致報告的 EBITA 年比下降 3.3%。而 EBITA 利潤率為 11.7%，下降了 44 個基點。

Lower EBITA was partially balanced by greater interest income and higher cash balances as well as a lower tax rate of the prior year levels and foreign currency gains.

較低的 EBITA 部分被利息收入增加、現金餘額增加以及上一年水準較低的稅率和外匯收益所抵銷。

Many of these factors, we reported earnings per share of $20.36 which was down a modest 1% from prior year levels.

在許多因素的影響下，我們公佈的每股收益為 20.36 美元，較去年水準小幅下降 1%。

Moving to our cash flow performance. Cash generated from operating activities during the first quarter was $127.7million. While free cash flow totaled $122.2 million representing conversion of 133% relative to net income compared to the prior year. Precast, nearly doubled and hit a record first quarter level.

轉向我們的現金流表現。第一季經營活動產生的現金為1.277億美元。自由現金流總計 1.222 億美元，與前一年相比，相對於淨利潤的轉換率為 133%。預製件數量幾乎翻了一番，並達到第一季創紀錄的水平。

Our cash flow growth primarily reflects more modest working capital investment compared to the prior year as well as ongoing progress with internal initiatives and our enhanced margin profile.

我們的現金流成長主要反映了與前一年相比，營運資本投資更為溫和，以及內部措施的持續進展和我們提高的利潤率。

Turning out our outlook has indicated today's press release and detailed on page '12 of our presentation, we are modestly raising full year fiscal 2025 EPS guidance to reflect updated assumptions for interest and other income. Following first quarter results, we now project EPS in the range of $9.25 to $10 compared to prior guidance of $9. 20 to $9.95.

結果我們的前景已在今天的新聞稿中得到體現，並在我們的簡報的第12 頁上進行了詳細說明，我們將適度提高2025 財年每股收益指引，以反映利息和其他收入的最新假設。根據第一季業績，我們現在預計每股收益將在 9.25 美元至 10 美元之間，而先前的指引為 9 美元。 20 至 9.95 美元。

That said we are maintaining our sales guidance of down 2.5% to up 2.5% including down four to up 1% on an organic daily basis as well as even at margins up 12.1% to 12.3%.

也就是說，我們維持銷售指導，下降 2.5% 至成長 2.5%，其中每日自然銷售額下降 4% 至成長 1%，甚至利潤率成長 12.1% 至 12.3%。

Our sales outlook takes into consideration October to date sales trends and ongoing near term economic uncertainty. We're assuming potentially subdued customer activity through the balance of the calendar year, reflecting general malaise around the upcoming US election and into the seasonally slower fall and winter months taken together. We currently project fiscal second quarter organic daily sales to decline by a low to mid single digit percent over the prior year quarter.

我們的銷售前景考慮了 10 月迄今為止的銷售趨勢和持續的近期經濟不確定性。我們假設在日曆年的剩餘時間內客戶活動可能會受到抑制，反映出即將到來的美國大選以及季節性放緩的秋季和冬季月份的普遍不適。我們目前預計第二財季有機日銷售額將比去年同期下降低至中個位數百分比。

We assume end market demand stabilizes at the back half of the year with potential for some modest improvement later in the year.

我們假設終端市場需求在今年下半年趨於穩定，並有可能在今年稍後出現一些小幅改善。

Combined with easing comparisons, the midpoint of guidance assumes average organic daily sales are relatively unchanged year by year in the second half of our fiscal year, including a return to modest growth in the fourth quarter.

結合寬鬆的比較，指導的中點假設我們財年下半年的平均每日有機銷售額同比相對不變，包括第四季度恢復溫和增長。

Overall. This underlying coral sales trend assumption is directly consistent with our initial outlook provided in August.

全面的。這一基本的珊瑚銷售趨勢假設與我們 8 月提供的初步展望直接一致。

And while our first quarter sales exceeded our expectations, we believe it remains prudent to maintain our initial assumptions at this early point. In our fiscal year.

儘管我們第一季的銷售額超出了我們的預期，但我們認為維持我們早期的初步假設仍然是謹慎的。在我們的財政年度。

Lastly, we expect second quarter gross margins to increase slightly on a sequential basis and even to margins of 11.7% to 11.9%.

最後，我們預計第二季毛利率將環比小幅成長，甚至達到 11.7% 至 11.9%。

This includes assumptions of potential expense leveraging on organic sales declines as well as the impact of ongoing growth investments offset by lower life expense compared to the prior year.

這包括利用有機銷售下降帶來的潛在費用的假設，以及持續成長投資的影響被與前一年相比較低的壽險費用所抵消。

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

至此，我現在將電話轉回給尼爾，徵求一些最終意見。

Thanks David. So to wrap up and summarize, we feel good about the positive demand signals that we're starting to see develop, including rising order trends across our higher margin engineered solutions segment.

謝謝大衛。因此，總而言之，我們對開始看到的積極需求訊號感到滿意，包括我們利潤率較高的工程解決方案領域的訂單趨勢不斷上升。

We also have many self help growth and margin opportunities that we expect to manifest in coming quarters that said we expect near term sales to remain choppy as customers slowly reengage production and capital investments ahead of the upcoming us election and seasonally slower fall and winter months.

我們還有許多自助成長和利潤機會，我們預計將在未來幾季顯現出來，這表明我們預計近期銷售將保持波動，因為客戶在即將到來的美國大選和季節性放緩的秋冬月份之前緩慢重新投入生產和資本投資。

We also remain cognizant of lingering macro crosscurrents including geopolitical unrest and some uncertainty around the cadence and extent of interest rate cuts near term as such. We believe maintaining our fiscal 2025 cells and EBITA margin outlook remains prudent at this juncture pending greater clarity on the demand and macro backdrop in coming months.

我們也仍然認識到揮之不去的宏觀逆流，包括地緣政治動盪以及近期降息節奏和程度的一些不確定性。我們認為，在未來幾個月需求和宏觀背景更加清晰之前，維持 2025 財年單元和 EBITA 利潤率前景仍然謹慎。

Importantly, we remain constructive on the underlying fundamental outlook within our core and markets and industry focus. We're favorably positioned to drive above market growth and margin expansion as demand re accelerates reflecting our industry position and internal initiatives from critical break fix m support at a local level to an expanding portfolio of emerging technologies and specialized engineering solutions. We believe our capabilities and strategy are significant to our customers and as customers reconfigure and reinforce supply chains in support of their own growth strategies, long term demand tailwinds around reshoring and infrastructure investment in the US are just beginning to manifest and could accelerate over the next 3 to 5 years.

重要的是，我們對我們的核心、市場和產業重點的基本面前景保持建設性的態度。隨著需求重新加速，我們處於有利位置，可以推動高於市場的成長和利潤擴張，這反映了我們的行業地位和內部舉措，從地方層面的關鍵突破修復支持到不斷擴大的新興技術和專業工程解決方案組合。我們相信，我們的能力和策略對我們的客戶至關重要，隨著客戶重新配置和加強供應鏈以支持其自身的成長策略，圍繞美國回流和基礎設施投資的長期需求推動力才剛開始顯現，並可能在未來加速發展。

At the same time, us, manufacturing infrastructure is aged and as our customers', technical service and support requirements have increased as they manage their own labor constraints.

同時，我們的製造基礎設施已經老化，而我們的客戶在管理自己的勞動力限制時，技術服務和支援的要求也隨之增加。

We believe this backdrop could present an extended period of structurally higher break fix MRO activity as well as ongoing investment into refreshing and expanding industrial production infrastructure and capacity across North America.

我們認為，這種背景可能會帶來較長時期的結構性較高的故障修復 MRO 活動，以及對更新和擴大整個北美工業生產基礎設施和產能的持續投資。

This will require strong channel partners with leading technical capabilities, next generation solutions and strategic supplier relationships.

這將需要擁有領先技術能力、下一代解決方案和策略供應商關係的強大通路合作夥伴。

Our strategy and growth initiatives are strongly aligned with these trends and requirements. We believe this creates a compelling growth opportunity in the calendar 2025 and longer term. And we're positioning our teams and investments accordingly.

我們的策略和成長計劃與這些趨勢和要求緊密結合。我們相信，這將在 2025 年及更長期創造令人矚目的成長機會。我們正在相應地定位我們的團隊和投資。

And then lastly, we're well positioned to capitalize on the next iteration of the industrial economy.

最後，我們已做好充分利用工業經濟下一次迭代的準備。

Given our domain knowledge and scale across industrial facilities, core capital equipment.

鑑於我們在工業設施、核心資本設備方面的領域知識和規模。

This includes our expertise around critical motion and power train products in demanding applications, access to premier supplier, brands and nonstandard components and nationwide local service reliability.

這包括我們在高要求應用中的關鍵運動和動力傳動系統產品方面的專業知識、獲得優質供應商、品牌和非標準零件的機會以及全國範圍內的本地服務可靠性。

In addition, we have leading channel position in providing advanced robotics, machine vision and high tech fluid power systems.

此外，我們在提供先進機器人、機器視覺和高科技流體動力系統方面擁有領先的通路地位。

Combined with our network of service shops, technicians and engineers. We're playing a critical role in linking legacy industrial production infrastructure and processes with new advanced applications and technologies both now and into the future.

結合我們的服務店、技術人員和工程師網路。無論現在或未來，我們在將傳統工業生產基礎設施和流程與新的先進應用和技術連接起來方面發揮關鍵作用。

Overall, I remain excited about our potential and we look forward to showcasing our capabilities in the quarters and years to come.

總的來說，我仍然對我們的潛力感到興奮，我們期待在未來的季度和幾年中展示我們的能力。

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，我們將開通熱線回答您的問題。

Thank you.

謝謝。

We will now begin the question and answer session. If you would like to ask a question, please pick up your handset. Press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again as a reminder. If at any time you need to reach an operator, please press star then zero. We'll pause for just a moment. To compile the Q&A roster.

我們現在開始問答環節。如果您想提問，請拿起手機。按星號，然後按電話鍵盤上的數字 1。如果您想撤回問題，請再次按星號一作為提醒。如果您在任何時候需要聯絡接線員，請按星號，然後按零。我們暫停一下。編制問答名冊。

Your first question comes from the line of David Mey the third. Please go ahead.

你的第一個問題來自大衛‧梅伊三世的台詞。請繼續。

Thank you. Good morning guys.

謝謝。早安，夥計們。

My, my first question is more out of curiosity when you talk about orders in the ES segment, do you have a rough approximation of what percentage of ES sales are coming via customer capital spending budgets versus expense items and then related to that. You, you talked about the that orders were better in September and then you talked about, I guess delivery sales trends in October being a bit softer, but did orders remain strong in the midst of October as well?

我的第一個問題更多是出於好奇，當您談論ES 細分市場的訂單時，您是否粗略地估計了ES 銷售額中透過客戶資本支出預算與費用項目獲得的百分比，然後與之相關。您談到 9 月份的訂單情況較好，然後您談到，我猜 10 月份的交貨銷售趨勢有點疲軟，但是 10 月中旬的訂單是否也仍然強勁？

Yeah, so David , I'll start, I think across our engineered solutions, many of those sales to our customers can be capitalized and are by them. But I would say they are not large, significant capital investments for them and they have a very good returns profile. And so I often term it, I think about it that it can be, you know, Opex type activities that enhance performance and productivity that obviously they will capitalize. So they're not, you know, heavy capital intensive systems. On that side, we were encouraged by the order trends that we talked about in the first quarter and have that coming across and including the double digit side in technology, which is good to see as well as the automation side. And I'd say early on, you know, while there can be some even month to month. We are continue to be encouraged by that activity, especially across automation and the combined engagement with our service center teams, our access and position with some of those customers and helping them solve problems that are either present around labor constraints that they're still dealing with or their view of how they can use automation and technology to enhance productivity so early to call that it's, you know, sustained in the steady uprise from here perfectly, but we are encouraged.

是的，所以大衛，我首先，我認為在我們的工程解決方案中，許多向客戶的銷售都可以資本化，並且是由他們進行的。但我想說，它們對他們來說並不是大規模、重要的資本投資，而且它們的回報率非常好。所以我經常將其稱為，我認為它可以是，你知道的，營運支出類型的活動，可以提高性能和生產力，顯然他們會利用這些活動。所以，你知道，它們不是重資本密集系統。在這方面，我們對第一季討論的訂單趨勢感到鼓舞，並看到了這一趨勢，其中包括技術領域的兩位數增長，這與自動化領域一樣令人高興。我想說，你知道，雖然有些甚至每個月都會發生。我們繼續受到這項活動的鼓舞，特別是在自動化和與我們的服務中心團隊的聯合參與、我們與其中一些客戶的接觸和地位以及幫助他們解決他們仍在處理的勞動力限制方面存在的問題他們對如何利用自動化和技術來提高生產力的看法如此之早，你知道，從這裡開始，它在穩步上升中持續完美，但我們感到鼓舞。

That's good to hear. Thanks Neil. Next one for partially for Dave to still quiet on the acquisition front a little bit here and your net debt continues to dwindle down. I just wondering if you talk about the pipeline, there are seller expectations too high. Are you not finding targets that are congruent with your strategy? And then when I look at slide '11 and I think about share repurchase relative to these other capital allocation priorities, it would seem like based on where you're you're at today. If you can't find M&A deals to do that, that share repurchase would leapfrog up to number two on that list. And Neil, you said something about allocating more capital in the coming year. So maybe you could just talk a bit about those two items and, and how you feel about them as we enter the Next calendar year Here.

很高興聽到這個消息。謝謝尼爾。下一個部分是戴夫在收購方面仍然保持沉默，你的淨債務繼續減少。我只是想知道你是否談論管道，賣家的期望太高了。您是否沒有找到與您的策略相符的目標？然後，當我查看幻燈片 '11 並考慮相對於其他資本配置優先事項的股票回購時，它似乎是基於您今天所處的位置。如果你找不到併購交易來做到這一點，那麼股票回購將躍升至該名單中的第二位。尼爾，你談到了來年分配更多資本的問題。因此，也許您可以談談這兩個項目，以及當我們進入下一個日曆年時您對它們的感受。

You bet. I mean to your point, Dave, we do remain very disciplined in terms of the, you know, the targets that said, very encouraged by the pipeline and where we stand. Like I said, both in terms of the more traditional bolt on deals and some more midsized deals, so very active there to our priorities. Once again, those are around, you know, really focused on the continued build out of engineered solutions, including the automation footprint that we've continued to expand both organically and through the bolt on acquisitions as well as you know, certainly around continued to build out the flow control and fluid power. So like the pipeline, like what we're seeing there, we continue to be more active in recent quarters on share buyback, main discipline there as well just thinking about, but you would expect us to see that continue over the next few quarters just given to your point where the cash position and leverage is. So like I said, good things there as we move forward, we remain very encouraged. Like I said, just can't always control the timing on some of these acquisitions that you know, are still in the pipeline.

你打賭。我的意思是，戴夫，就你的觀點而言，我們確實在上述目標方面保持了非常嚴格的紀律，我們對管道和我們的立場感到非常鼓舞。就像我說的，無論是更傳統的螺栓交易還是一些更中型的交易，我們的優先事項都非常活躍。再一次，這些都是圍繞著，你知道，真正專注於工程解決方案的持續構建，包括我們繼續有機地和通過收購的螺栓擴展的自動化足跡，當然，圍繞繼續建立流量控制和流體動力。因此，就像管道一樣，就像我們在那裡看到的那樣，我們在最近幾個季度繼續更加積極地進行股票回購，那裡的主要紀律以及只是思考，但你會期望我們在接下來的幾個季度繼續看到這種情況給出您的現金頭寸和槓桿所在的點。所以就像我說的，隨著我們前進，好事不斷，我們仍然非常受到鼓舞。就像我說的，只是無法總是控制一些仍在進行中的收購的時機。

And I'd say David, you mentioned slide 11, you know, we think the billion dollar, you know, number of capital returned over the four years is good last year at a little over 250. And we would expect this year to be higher. And so we know, and we'll continue to vet where there are good organic opportunities for us to invest that have a strong returns profile in doing it. You know, with that said, we're not so capital intensive to do that, M&A will remain a strong priority, but we're committed, we will not just stack cash. We think in the set up in this environment, we're going to have multiple opportunities to further build out our differentiation, our technical differentiation and what that will mean to customers and really all our stakeholders.

我想說的是，大衛，你提到了幻燈片 11，你知道，我們認為去年四年內返還的資本數量為 10 億美元，略高於 250。所以我們知道，我們將繼續審查哪些地方有良好的有機投資機會，並且投資回報率很高。你知道，話雖如此，我們並沒有那麼資本密集型來做到這一點，併購仍將是一個重要的優先事項，但我們承諾，我們不會只是積累現金。我們認為，在這種環境下，我們將有多種機會進一步建立我們的差異化、技術差異化以及這對客戶和所有利害關係人意味著什麼。

And I do like the fact that we continue to protect some of the SD and a spend that's, you know, very much focused on organic growth with several key projects ongoing there in light of, you know, what we see is pending recovery and the importance of that investment as well for organic growth. So, you know, we continue to work some of the temporary cost actions. And you know, in addition to just the the natural shock absorbers in the business, you know, to protect the bottom line profitability but continues to still fund some of that S DNA spend that's focused on some very critical organic growth projects.

我確實喜歡這樣一個事實，即我們繼續保護一些可持續發展和支出，你知道，非常注重有機增長，有幾個關鍵項目正在進行，因為我們看到的是等待復甦和這項投資對於有機增長也很重要。所以，你知道，我們繼續採取一些臨時成本行動。您知道，除了業務中的天然減震器之外，您知道，為了保護底線盈利能力，但仍繼續為一些專注於一些非常關鍵的有機增長項目的 S DNA 支出提供資金。

Yeah, that all Sounds really good.

是的，這一切聽起來都很好。

Thanks a lot guys.

非常感謝大家。

Thanks a lot guys.

非常感謝大家。

Thank you.

謝謝。

Your next question comes from the line of Christopher Glynn with Oppenheimer. Please go ahead.

你的下一個問題來自克里斯多福·格林和奧本海默的對話。請繼續。

Hey, good morning. Just wanted to dive into some of the areas where you saw some improvement. I think automation and technology were particularly the commentary seems a little inflected from recent quarters. So wondering if you can comment, you know, further on how sticky you think that feels and also particularly some layers on what's going on with technology. Are you seeing device makers, those types of customers starting to actually increase production?

嘿，早安。只是想深入研究您看到一些改進的一些領域。我認為自動化和技術尤其如此，最近幾季的評論似乎有些變化。所以想知道你是否可以評論一下，你知道，進一步評論你認為這種感覺有多粘，特別是關於技術正在發生的一些層面。您是否看到設備製造商（此類客戶）開始實際增加產量？

Yeah, So if I start on the technology, you know, it's good to see the increased order rate and activity that was a sales contributor to our engineered solutions segment in the quarter, kind of relatively flat when it consolidates up overall. But you think back over the past seven quarters or so good to see that I think most indicators are an activity that we would see increased activity around the chip manufacturers.

是的，所以如果我從技術開始，你知道，很高興看到訂單率和活動的增加，這是本季度我們工程解決方案部門的銷售貢獻者，當整體整合時，相對持平。但回想一下過去七個季度左右，我認為大多數指標都是我們會看到晶片製造商活動增加的活動。

And then I think the forecast that many have for '25 on Wafer fab equipment being at, you know, high percentage numbers perhaps over 20% for '26 perhaps still being double digit. On top of that, I think we start to see some early indications, obviously we're involved with customers and have those exchanges into that. So perhaps still early. But I think as we move into and through calendar '25 that's going to be favorable for us on the technology front and then on the automation side continue to be high interest and activity. On the robotic side, the autonomous mobile robot, the MRS, the collaborative side as customers look to enhance or deal with their own labor challenges in doing it has been encouraging. So pipeline and activity, the amount of application, engineering work that we have going on is good. But also on the, on the vision side, as we think about, you know, product and process inspection, what that can mean for control and enhancements. On that side, we've got good activity on that front. And so like we say, not always, not always, even when the projects get implemented. And oftentimes there's other parts that have to sequence into that, but we are encouraged by the general activity and so directly to your question, we think there's stickiness there.

然後我認為許多人對 25 年晶圓廠設備的預測是，你知道，高百分比數字可能超過 20%，而 26 年可能仍然是兩位數。最重要的是，我認為我們開始看到一些早期跡象，顯然我們正在與客戶合作並進行這些交流。所以也許還早。但我認為，隨著我們進入 25 日曆年，這將對我們在技術方面有利，然後在自動化方面繼續引起人們的高度興趣和活動。在機器人方面，自主移動機器人、MRS、協作方面，因為客戶希望增強或應對自己的勞動力挑戰，這一直令人鼓舞。因此，我們正在進行的管道和活動、應用量和工程工作都很好。而且在視覺方面，正如我們所思考的，你知道，產品和過程檢查，這對控制和增強意味著什麼。在這方面，我們在這方面進行了良好的活動。所以就像我們說的，並不總是，並不總是，即使專案得到實施也是如此。通常還有其他部分必須按順序排列，但我們受到一般活動的鼓勵，因此直接回答您的問題，我們認為那裡有粘性。

Great. And then just a little more on the Capital you that that's the other area on the pipeline where it sounds like the commentary has inflected to you know, more bullish. And I don't, I don't recall the midsize reference is standard be Virginia press release. But you know what, what has really transpired in that pipeline? Are you seeing looser postures by sellers that you've been tracking for a long time?

偉大的。然後再多講一點關於《資本》的內容，這是管道中的另一個領域，聽起來評論已經發生了變化，你知道，更加樂觀。我不記得，我不記得中型參考是弗吉尼亞州新聞稿的標準。但你知道嗎，這條管道到底發生了什麼事？您是否發現您長期追蹤的賣家態度有所放鬆？

You know, I'd say any time in the in the environment or, or cycles, you know, companies become available. I mean, our, our prospect is we know who fits, we work very hard to know them to be around. We, you know, we state we can't perfectly control the control, the timing. I think I've always said clearly our focus, our priorities are boltons in the riot areas and midsize as well. So I don't know that it's too much to read into the, that it's in the, in the remarks, I think, I don't know perhaps there before, it's clearly been in my, my verbiage and our focus that we're working on and executing.

你知道，我想說的是，在環境或週期中的任何時間，公司都會變得可用。我的意思是，我們的前景是我們知道誰適合，我們非常努力地了解他們在身邊。我們，你知道，我們聲明我們無法完美地控制控制和時間。我想我一直清楚地說我們的重點，我們的優先事項是防暴地區和中型地區的博爾頓。所以我不知道這是否太多了，在評論中，我想，我不知道也許之前，這顯然是在我的措辭和我們的重點中，我們'正在研究和執行。

We look across, we think there are many good opportunities and then they based on cycles running and operating those businesses, there's challenges and clearly scale can help in doing it. Customers are expecting more in the side and there's just avenues or areas that we can help and with the frequency and the amount of acquisitions that we've had, we've got a very good track record of integrating and operating and I think that's attractive to prospective sellers.

我們放眼望去，我們認為有很多好的機會，然後它們基於運行和運營這些業務的周期，存在挑戰，並且顯然規模可以幫助做到這一點。客戶期望有更多的方面，我們可以在一些途徑或領域提供幫助，並且根據我們收購的頻率和數量，我們在整合和運營方面擁有非常好的記錄，我認為這很有吸引力給潛在的賣家。

Thank you.

謝謝。

Thank you.

謝謝。

Your next question comes from the line of Ken Newman with Keyban capital markets. Please go ahead.

您的下一個問題來自 Keyban 資本市場的 Ken Newman。請繼續。

Hey, good morning guys,

嘿，早安，夥計們，

morning.

早晨。

So first question here on the October trends. Sorry if I missed this, but is there a way to quantify what you think the hurricane impacts are so far into the month and then just, you know, any color on the monthly comps for November and December? What those look like as we progress through the record? Two Q, I'm just trying to frame that the, the new two Q DS guide relative to the to the October trends.

第一個問題是關於十月的趨勢。抱歉，如果我錯過了這一點，但是有沒有辦法量化您認為本月到目前為止颶風的影響，然後，您知道，11 月和 12 月的月度比較有任何顏色嗎？當我們在記錄中取得進展時，這些看起來是什麼樣的？兩個 Q，我只是想框架一下，新的兩個 Q DS 指南相對於 10 月的趨勢。

Yeah i can, I can start, i think And then exaggerate qualification to, a you know we have we will look at associate level displays and appeared areas will grow up and running an operating you know we do at customer and some other most impacted areas and say they fallen buckets of may be is only thing of 3rd running very well may be at some we do but like later then some other that can perks will be a dam for little bit more extended period it is a quick strategy and will looking to support all , i think in this in this total economic, Like other advance in, I just think about the October side, on the moth we do have 6 to 7 days to go it can be natural pickup in those final days activity and so , we could expect some. October.

是的，我可以，我可以開始，我想然後誇大資格，你知道我們有，我們將查看助理級別的展示，出現的區域將成長並運行你知道我們在客戶和其他一些受影響最嚴重的區域所做的操作並說他們掉下來的水桶可能是第三次運行的唯一事情，可能在我們做的一些事情中，但像後來的一些其他可以額外津貼的水壩將是一個更長一段時間的水壩，這是一個快速的策略，並且會尋求支持所有人，我認為在這個總體經濟中，就像其他進展一樣，我只想到10 月份，我們確實還有6 到7 天的時間，最後幾天的活動可以自然回升，所以，我們可以期待一些。十月。

Yeah Rayan would say it relates to the year, over year comps by month? I'd say November is somewhat similar to October in the prior year. And then we do have an easier comparison coming about in December relative to both October and November.

是的，Rayan 會說這與年份有關，逐月比較？我想說十一月與去年的十月有些相似。然後我們確實可以對 12 月相對於 10 月和 11 月進行更簡單的比較。

Yeah, that's, that's very helpful.

是的，這非常有幫助。

And then for the follow up here, you know, I I was pwasantly surprised by, you know, just how good the quarter ended. I'm curious if you just talk a little about whether you think you're gaining incremental share in this weaker demand environment. You know, I think one of your largest competitors saw some weaker demand in their industrial business this past quarter versus their expectations. And so it does seem like you outperformed here. But I'm just curious if you think you are potentially, you know, winning customers from your, your bigger competitors or if this is more so just a mix dynamic depending on the niches of the end markets that you play in.

然後對於這裡的後續行動，你知道，我對這個季度的結束感到非常驚訝。我很好奇您能否談談您是否認為自己在這個需求疲軟的環境中獲得了增量份額。您知道，我認為您最大的競爭對手之一上個季度的工業業務需求低於預期。所以看起來你確實在這裡表現出色。但我只是好奇你是否認為你有可能從你的更大的競爭對手那裡贏得客戶，或者這是否只是一種混合動態，這取決於你所參與的終端市場的利基市場。

Well, I think we're getting benefits on our focus areas and that as it executes. And we talked about a little bit of the engineered solutions. I mean, obviously the space is large and there's a lot of solutions and product sets that go out and we compete against, you know, many in that highly fragmented space. And I think what you are seeing and will continue customers just look to consolidate spend, they're going to look to do business with fewer, more capable suppliers into that side. And, you know, we're just intent on being one of those that can do that, but we've got a clear focus. We've got a clear strategy on our customers and how we can expand our offering within them and that's going to continue to be a focus area. And then we think cross sell while still early innings will continue to gain traction. And that's valuable to the customers and our teams continue to do a good job at it.

嗯，我認為我們正在從我們的重點領域以及執行過程中獲益。我們討論了一些工程解決方案。我的意思是，顯然這個空間很大，有很多解決方案和產品組合推出，我們在這個高度分散的空間中與許多人競爭。我認為您所看到的並將繼續出現的情況是，客戶只是希望整合支出，他們將尋求與更少、更有能力的供應商開展業務。而且，你知道，我們只是想成為能夠做到這一點的公司之一，但我們有明確的重點。我們對我們的客戶以及如何在他們中擴展我們的產品有明確的策略，這將繼續成為一個重點領域。然後我們認為，在早期階段的交叉銷售將繼續受到關注。這對客戶來說很有價值，我們的團隊將繼續做好這方面的工作。

Very good. Thanks for the color.

非常好。謝謝你的顏色。

Your next question comes from the line of Brad Lindsay with Measel. Hope, please go ahead.

你的下一個問題來自 Brad Lindsay 和 Measel 的對話。希望，請繼續。

Hi, good morning, All

大家早安

good morning.

早安.

First question just on the automation engineered platform and thinking in terms of staffing and overhead, is it fair to say that that A I retained a lot of the personnel and the integrator capacity even when volumes were weak. And as we see this recovery, you should get fairly, fairly good utilization and leverage there or are there resources that need to come back as you satisfy some of the return of the the order growth here?

第一個問題是關於自動化工程平台以及在人員配置和管理費用方面的思考，可以公平地說，即使在產量疲軟的情況下，A I 仍保留了大量人員和整合商能力。正如我們看到的這種復甦，您應該在那裡獲得相當、相當好的利用率和槓桿作用，或者當您滿足這裡訂單增長的一些回報時，是否需要返回資源？

Now, Brett, I would say we worked hard to stay at staffing levels we talked about in those periods we were active, we were busy in the amount of customer engagement, the application engineering on the projects, the pace of those going through maybe in some of those earlier times, slower times, there's a few more, there's an extra step in the approval process in doing it. But no, we've maintained and consciously to have capability to have focus for what we see now and for what we believe are for the period ahead, especially around robotics and vision. We think those are going to be two highly attractive areas, especially when we consider our core customer segments. Their percentage of automation adoption remains still relatively low. So interest is increasing, the need is there and we think we can help fulfill a lot of that demand.

現在，布雷特，我想說，我們努力保持在我們活躍時期所討論的人員配備水平，我們忙於客戶參與量、項目的應用工程、以及可能在其中一些較早的時間，較慢的時間，還有更多，在批准過程中有一個額外的步驟。但不，我們一直保持並有意識地有能力關注我們現在所看到的以及我們認為未來一段時間的情況，特別是在機器人和視覺方面。我們認為這將是兩個極具吸引力的領域，特別是當我們考慮到我們的核心客戶群時。他們的自動化採用比例仍然相對較低。因此，興趣在增加，需求是存在的，我們認為我們可以幫助滿足很多需求。

That's great. Thanks for that. And then just a follow up on the reassuring dynamic. So ait has doubled the addressable markets over the last several years. You've expanded the solutions as you think about some of these critical industries that are getting resor into the US. How is a content per project or the or the wallet share of that commensurately you know, improved or increased in line with the TAM is it should we think about a kind of, you know, doubling of that as well? Any any thoughts there on the your content?

那太棒了。謝謝你。然後是對令人放心的動態的跟進。因此，在過去幾年中，艾特的潛在市場增加了一倍。當您想到一些正在向美國投資的關鍵行業時，您已經擴展了解決方案。每個項目的內容或相應的錢包份額如何根據 TAM 進行改進或增加，我們是否應該考慮將其加倍？對您的內容有什麼想法嗎？

Yeah, I think we're seeing, you know, we are benefiting, we're well positioned on resowing and the amount of activity just when we look at the amount of industrial construction projects, obviously we're involved directly but also indirectly. I mean, there's benefit for metals, aggregates, cement and those support industries which are good for us and we have good participation in content there. So we feel like it is going to only continue as customers or these industries look to the risk supply chains and have more things locally available to fully participate, to be determined through the election cycle, how the tariff dynamic changes, other than I think it looks like they will continue. And perhaps at a heightened level just depends on perhaps the outcome at what degree of heightened level So we think reshoring will continue. And for us, we've got involvement then with our customers to help them either bring those projects or that work back into their facility. And that may be running their equipment more and some light capital requirements or they may be qualifying another supplier which can play into further capacity build out and they're looking for our help to work with their supply chain as well. So that's been positive for us and really, as I think about it, we're well positioned, not only us but our business in Mexico and Canada are getting benefits from that also.

是的，我認為我們看到，我們正在受益，當我們看到工業建設項目的數量時，我們在重新播種和活動量方面處於有利地位，顯然我們直接但也間接參與其中。我的意思是，這對金屬、骨材、水泥和那些對我們有利的支持產業有利，我們對這些產業的內容有很好的參與。因此，我們認為，只有當客戶或這些行業關注風險供應鏈，並在當地有更多的東西可以充分參與時，這種情況才會繼續下去，透過選舉週期來確定關稅動態如何變化，而不是我認為的看起來他們會繼續。也許在更高的水平上，也許只取決於提高水平的結果，所以我們認為回流將會繼續。對我們來說，我們已經與客戶合作，幫助他們將這些項目或工作帶回他們的工廠。這可能會更多地運行他們的設備，並且資本要求較低，或者他們可能正在資格另一家供應商，該供應商可以進一步擴大產能，他們也在尋求我們的幫助來與他們的供應鏈合作。所以這對我們來說是積極的，實際上，正如我所想，我們處於有利地位，不僅是我們，我們在墨西哥和加拿大的業務也從中受益。

Great. Thanks for the insight.

偉大的。感謝您的見解。

Thank you.

謝謝。

Your next question comes from the line of Chris Dankert with loop capital markets. Please go ahead

你的下一個問題來自克里斯·丹克特（Chris Dankert）與循環資本市場的路線。請繼續

Morning guys. Thanks for taking the questions.

早安各位。感謝您提出問題。

I guess just to circle back to the organic investment opportunities, we kind of touched on earlier, I guess maybe any update on the Pacific Northwest capacity investment, any update on some of the technology proliferation opportunities, anything worth kind of calling out in terms of things that start to kind of ramp at the back after fiscal '25.

我想只是回到有機投資機會，我們之前提到過，我想也許有關於太平洋西北地區產能投資的任何更新，關於一些技術擴散機會的任何更新，任何值得在方面提出的東西25 財年之後，事情開始有所進展。

Yes. So what I would say in the Northwest complete operational team fully in in doing it, same with the fluid power technology investment in new facility running and operating there as well, so well positioned. And we think both capacity moves, timing and investment for what could be will be an inflection of greater demand. And both of those will serve us very well

是的。因此，我想說的是，西北完整的營運團隊正在全力以赴，與在那裡運行和運營的新設施的流體動力技術投資一樣，位置非常好。我們認為，產能轉移、時機選擇和投資都可能帶來更大的需求。這兩點都會對我們很有幫助

To make investments as well and tie in some of our, you know, automation businesses together with engineering solutions, things like that. So we can collaborate and cross sell even amongst, you know, where they have areas of specialties and continue to expand that footprint organically as well. So that's another area of focus and as well as driving some additional efficiencies and back office some additional technology investment there really across the business, Chris. So it's on many fronts.

進行投資並將我們的一些自動化業務與工程解決方案結合起來，諸如此類。因此，我們甚至可以在他們擁有專業領域的地方進行合作和交叉銷售，並繼續有機地擴大其足跡。所以這是另一個重點領域，同時也推動了整個企業的額外效率和後台技術投資，克里斯。所以這是在很多方面。

Got it, got it. Thanks for the call there and I guess maybe one more conceptual question. It, it seems like there's a lot of appetite at the customer level for distributors that are able to play a more system integrator type approach in automation specifically. A it seems to be kind of in a sweet spot there, I guess, do you think that that's a correct assessment? And then is there any kind of friction between, you know, some of the maybe integrated customers you serve and kind of where you play? Just maybe some thoughts on that market, particularly that pertains to automation and the growth you're seeing there?

明白了，明白了。感謝您的來電，我想可能還有一個概念性問題。客戶層面似乎對能夠在自動化領域採用更多系統整合商類型方法的經銷商有很大的興趣。我想，這似乎是一個最佳點，你認為這是一個正確的評估嗎？然後，你知道，你所服務的一些可能整合的客戶和你所從事的業務之間是否有任何摩擦？也許只是對這個市場的一些想法，特別是與自動化和您在那裡看到的成長有關的想法？

Sure. So Chris, I'd say I don't view that there's, there's friction and you know, often in channels and markets and especially when there gets to be accelerated growth products and solutions flow through to multiple paths and customers often dictate that. And so if they have some internal capability or it's a lighter project in that they may be more active themselves. If the project is more complex, there's going to be integrators involved in that. And the, the way we work is that we're happy when our solutions flow in either of those ways in doing it. We are also working and have more productized solutions as we think about in in vision, in robotics, both collaborative and politti type applications and others that are more turnkey for customers as it goes in. And so that that are wider, they're not high investments, but they yield good benefit and that they can be replicated across. So, you know, we'll look at those ways how we participate more in that. But no, you know, hey, we're, we're agnostic. Our focus is how we help customers with their problems with our solutions. And integrators are a part of that going to market.

當然。所以克里斯，我想說，我不認為有摩擦，你知道，通常在通路和市場中，特別是當產品和解決方案加速成長時，它們會流向多種路徑，而客戶通常會決定這一點。因此，如果他們有一些內部能力或這是一個較輕的項目，他們自己可能會更加積極。如果專案更複雜，就會有整合商參與其中。而且，我們的工作方式是，當我們的解決方案以任何方式進行時，我們都會感到高興。我們也正在努力並擁有更多產品化的解決方案，因為我們在視覺、機器人技術、協作型和政治型應用程式以及其他為客戶提供更多交鑰匙服務的應用程式中考慮。 ，它們不是投資雖高，但效益良好，而且可以複製。所以，你知道，我們將研究如何更多地參與其中。但不，你知道，嘿，我們是不可知論者。我們的重點是如何透過我們的解決方案幫助客戶解決問題。整合商是進入市場的一部分。

Got it. If I could just kind of follow up on that really briefly, the, the, you know, product solutions are a really compelling opportunity, I guess in the past, I think palletizing was more mature and I think there were some new markets you guys were kind of exploring or, or moving further into machine operation and CC and C operation being one, just any update in terms of like the number of markets you're serving with the Productized Solutions today.

知道了。如果我能簡單地跟進一下，你知道，產品解決方案是一個非常引人注目的機會，我想在過去，我認為碼垛更加成熟，我認為你們有一些新的市場我們正在探索或進一步深入機器操作，CC 和C 操作就是其中之一，只是任何更新，例如您今天使用產品化解決方案服務的市場數量。

I don't know if they have a number of in markets we think about those applications, whether they can be C&C machine tending, warehousing and logistics, which also exist in all of our customers, right? Because as they move products out of production environments and doing it in consumer packaging and quality control and inspection, there's more and more of those applications. So in some of those, if we can make it easier, less integration requirements, less upfront engineering requirements in that it just accelerates the adoption. And then for us, we think it opens up even more opportunities around things that may be a little bit more technically challenging to do but still will have very significant benefits for the customer. So we like the productized solutions as an entry point. It's likely not taking or solving all the customer requirements in their facilities or addressing all the opportunities they can, but it is opening more and more doors for us.

我不知道他們是否有一些我們考慮這些應用的市場，它們是否可以是C&C機器管理、倉儲和物流，這些也存在於我們所有的客戶中，對嗎？因為當他們將產品移出生產環境並在消費包裝以及品質控制和檢驗中進行時，這些應用程式就會越來越多。因此，在其中一些方面，如果我們能讓事情變得更容易，減少整合要求，減少前期工程要求，因為它只會加速採用。對我們來說，我們認為它為一些事情提供了更多的機會，這些事情在技術上可能更具挑戰性，但仍然會為客戶帶來非常顯著的好處。因此，我們喜歡將產品化解決方案作為切入點。它可能不會滿足或解決客戶設施中的所有需求，也不會抓住所有可能的機會，但它為我們打開了越來越多的大門。

Makes sense. Thanks so much for the call.

有道理。非常感謝您的來電。

Thank you.

謝謝。

Your next question comes from the line of Aaron Reid with North Coast Research. Please go ahead.

您的下一個問題來自北海岸研究中心的 Aaron Reid。請繼續。

Hey, good morning, gentlemen,

嘿，早安，先生們，

Good morning.

早安.

Yeah, I was wondering if you could talk a little bit more about any remaining pressure coming from inflation or of any remaining pockets that you're seeing that could be issues in the near future. Is most of that behind you guys,

是的，我想知道您是否可以多談談來自通貨膨脹的任何剩餘壓力或您認為在不久的將來可能出現問題的任何剩餘口袋。大部分都在你們身後，

We still see general, you know, steady inflation, which once again for distributors is good, we said, you know, price/cost relatively neutral in the quarter, you know, price at about 100 basis points. So I think what we're seeing is that slow, steady inflationary impact, largely coming from labor and other overhead spend from our manufacturers. Once again here we do partner well with our key suppliers to take, you know, those price increases and pass them on in an orderly fashion. But you can see it in the easy and lipo trends and it's more normalized and steady state now. So the pockets I look at as areas of concern and like I said, this good, steady slight inflationary impact is good for distribution because we know how to take it, you package it, pass it on in early fashion and you know, drops from in the middle of the bottom line during the process.

我們仍然看到整體穩定的通膨，這對分銷商來說再次是件好事，我們說過，本季價格/成本相對中性，價格約為 100 個基點。因此，我認為我們看到的是緩慢而穩定的通膨影響，主要來自我們製造商的勞動力和其他間接支出。我們再次與我們的主要供應商建立了良好的合作夥伴關係，以有序的方式接受這些價格上漲並傳遞出去。但你可以在簡單和脂肪趨勢中看到它，現在它處於更正常化和穩定的狀態。因此，我將錢包視為值得關注的領域，就像我說的，這種良好、穩定的輕微通膨影響有利於分配，因為我們知道如何接受它，你將它包裝起來，以早期時尚的方式傳遞它，你知道，從過程中底線中間。

Okay, great. And then the other part is, and you briefly touched on it and we're hearing a lot of it as well too, is a lot of this pent up demand from people who are waiting for after the election. And I'm kind of wondering if you, when you hear that, if you're thinking that people are saying we're going to wait until after the election and that's legitimately the reason or is that some sort of an excuse saying, hey, we're after the election, but there might be some other considerations out there that they're taking in and on that. I know it's difficult to quantify what that might be, but I was wondering if you could speak a little bit more about the potential timing of if there is pent up demand. You know, how quickly do you think you would be seeing revenue being generated off of that?

好的，太好了。然後另一部分是，你簡短地談到了它，我們也聽到了很多，是來自選舉後等待的人們的大量被壓抑的需求。我有點想知道，當你聽到這個消息時，你是否認為人們說我們要等到選舉之後，這就是合理的原因，或者是某種藉口，嘿，我們是在選舉之後，但他們可能還會考慮其他一些因素。我知道很難量化這可能是什麼，但我想知道您是否可以多談談是否存在被壓抑的需求的潛在時機。您知道，您認為您需要多快才能看到由此產生的收入？

So one, I think the election, I don't know that it's a real driver, but clearly it has top of mind conversations for many of that. I think we have seen general belt tightening and deferral and if that's the entry point, there will be more of that release in post November time frame into the December and then going into early 2025 on that front. So we think that has occurred and so there can be some positives or some pickup force as we go through then into what would be our Q3 and the start of the new calendar year.

因此，我認為選舉，我不知道它是一個真正的驅動因素，但顯然它在許多方面都有最重要的對話。我認為我們已經看到普遍的勒緊褲腰帶和推遲，如果這是切入點，那麼在 11 月後的時間範圍內到 12 月，然後到 2025 年初，在這方面將會有更多的釋放。因此，我們認為這種情況已經發生，因此當我們進入第三季度和新日曆年的開始時，可能會出現一些積極因素或一些回升力量。

Great. That makes sense. Thank you.

偉大的。這是有道理的。謝謝。

Your next question comes from the line of Sabrina Abrams with Bank of America. Please go ahead.

您的下一個問題來自美國銀行的薩布麗娜·艾布拉姆斯 (Sabrina Abrams)。請繼續。

Hey, good morning, everyone,

嘿，大家早安，

Morning, morning.

早安，早安。

I just want to ask a little bit about the stock on from both your end and the customer standpoint. So I guess a how are you thinking about your own inventories from here? And it sounds like, you know, maybe getting a little more constructive on things bottoming. So maybe not de stocking career, but just want to ask about how you're thinking about your own inventories. And then b are any of your customers still de stocking.

我只是想從你們和客戶的角度詢問一些有關庫存的問題。所以我猜你是如何看待自己的庫存的？聽起來，你知道，也許在事情觸底的時候變得更有建設性。所以也許不是去庫存事業，只是想問一下你是如何看待自己的庫存的。然後，您的客戶是否仍在減少庫存。

Yes, I can start with our own and we're working with our core, core suppliers very closely and where to make the appropriate inventory investments. We will want to know what's going on in their business and where they may be at any various projects in production into the side. But we have not been reducing or pulling back of inventories. We want the right preparation. Obviously, we talk to them on high velocity types that they make regular we stock, but we're not looking to Overstock in those things that are slower, moving harder to make longer lead times are probably the ones that we're going to look to have the appropriate investments in and that helps customers stay up and running and for our suppliers, it makes sure that they continue to fully participate in what is an attractive MRO aftermarket for them. So that's our approach. For the most part, I'd say around our technical nature of the products, we do not get the benefit of stocking or therefore the penalty of de stocking in any economic cycles. I think the area that we did see some of that and it still would go on a little bit would be in the off highway mobile portion of our business and fluid power. And I think that was driven by when lead times extended out to over two years, 60 months on some of the side, those smaller OEMs had to make bets or placements on needs and requirements. And then as that product comes in and the demand environment softens a little bit. They could have what their needs are. Requirements from a near term production standpoint would be I think that will improve, it will improve as we go through this quarter, perhaps to the early part of '25. If I look at the demand cycles for off highway mobile, I do think there's a pick up in calendar '25 which will be positive. And I know we're taking this time to also work with them on an engineering front as more technology comes in whether that be in electronic controls into automation, perhaps even in start of some autonomy type projects with them. So we'll work that. But hopefully that's the right color for inventory stocking, destocking.

是的，我可以從我們自己的開始，我們正在與我們的核心供應商非常密切地合作，並在哪裡進行適當的庫存投資。我們想知道他們的業務正在發生什麼，以及他們在生產中的各個項目中可能處於什麼位置。但我們並沒有減少或縮減庫存。我們需要正確的準備。顯然，我們與他們討論了他們定期庫存的高速類型，但我們不希望在那些速度較慢、移動困難以延長交貨時間的產品中出現庫存積壓，這可能是我們要考慮的問題對我們的供應商進行適當的投資並幫助客戶保持正常運行，可以確保他們繼續充分參與對他們來說有吸引力的MRO 售後市場。這就是我們的方法。在大多數情況下，我想說的是，圍繞我們產品的技術性質，我們沒有從庫存中獲益，因此在任何經濟週期中都沒有得到去庫存的懲罰。我認為我們確實看到了其中的一些領域，而且它仍然會繼續下去，那就是我們業務的非公路移動部分和流體動力。我認為這是由於交付週期延長到兩年多，有時甚至是 60 個月，那些較小的 OEM 不得不根據需求和要求進行押注或佈局。然後，隨著該產品的上市，需求環境會稍微軟化。他們可以得到他們需要的東西。從近期生產的角度來看，我認為需求將會改善，隨著我們度過本季度，也許到 25 年初，它將會改善。如果我觀察非公路行動裝置的需求週期，我確實認為 25 年曆將出現正面的回升。我知道我們也正在利用這段時間在工程方面與他們合作，因為越來越多的技術出現，無論是在電子控制領域還是自動化領域，甚至可能與他們一起啟動一些自主類型的專案。所以我們會努力做到這一點。但希望這是庫存庫存和去庫存的正確顏色。

Thank you. That's super helpful. And then I just wanted to ask about the EBITDA margins in the quarter. I think they came in a little below what you guys had guided and obviously maintained the full year guide. But just want to understand what trended differently from your expectations.

謝謝。這非常有幫助。然後我只想問一下本季的 EBITDA 利潤率。我認為他們的表現略低於你們的指導，並且顯然維持了全年指導。但只是想了解哪些趨勢與您的預期不同。

Yes. And so I would say for us, as we think about it, right, largely, largely in line. It's not always linear as we, as we go across, start a year to end the year in that the sales development that we talked about in the in the first quarter, some of it did occur late, but we were conscious in wanting to maintain appropriate investments into growth areas for what we see is coming in the side. And then we really think the gross margin as we did the walk. There's really just some timing on the comparisons in that in the front, we were coming off of higher lifo and including some layer liquidation in Q4. So we expected sequential change in that. But the year over year comparison, there was some favorability that can occur in the prior first quarter of the year. So we feel like we're in a good position. We're not changing that outlook plans and trajectory. And I contend we have still good opportunities to continue to help ourselves with all the levers that we have around margins.

是的。所以我想說，我們認為，在很大程度上，很大程度上是一致的。這並不總是線性的，因為我們從一年開始到年底，我們在第一季談到的銷售發展，其中一些確實發生得很晚，但我們有意識地想要維持我們認為，對成長領域的適當投資即將到來。然後我們一邊走一邊真正思考毛利率。在前面的比較中，確實有一些時間安排，我們正在擺脫更高的後進先出，並在第四季度進行了一些層清算。所以我們預計這會發生連續的變化。但與去年同期相比，今年第一季可能會出現一些有利的情況。所以我們感覺我們處於一個有利的位置。我們不會改變前景計劃和軌跡。我認為我們仍然有很好的機會繼續利用我們在利潤方面擁有的所有槓桿來幫助自己。

You look back typically in this business, Q1 is our softest gross margin performance quarter. We bucked that trend last year with some anomalies on some vendor rebates and we were 29.7% even with some higher lifo expense reading through, you know, versus what we saw this year. So a tough comparison there. I said you really felt good about the sales development slightly outpacing our expectations, the gross margins. Like I said, you do see a path to continue to see those improve as we move across the quarters. And a lot of what you're seeing on a year to year basis is that tough comp that we saw last year?

回顧這個產業，第一季是我們毛利率表現最疲軟的季度。去年我們扭轉了這一趨勢，一些供應商回扣出現了一些異常情況，即使有一些更高的後進先出費用，你知道，與我們今年看到的情況相比，我們的比例仍然是 29.7%。所以這是一個艱難的比較。我說你對銷售發展和毛利率略高於我們的預期感到非常滿意。就像我說的，隨著我們跨季度的發展，你確實看到了一條繼續看到這些改善的道路。你每年看到的很多情況都是我們去年看到的艱難的比較？

Thank you so much.

太感謝了。

At this time. I am showing we have no further questions. I will now turn the call over to Mister Schrimsher for any closing remarks.

此時。我表明我們沒有其他問題了。我現在將把電話轉給施里姆舍先生，請他發表結束語。

No, at this point, I just want to thank everyone for joining us today and we look forward to talking with you throughout the quarter. Thank you very much.

不，此時此刻，我只想感謝大家今天加入我們，我們期待在整個季度與您交談。非常感謝。

Thank you,

謝謝你，

ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。