雅保公司 (ALB) 2020 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the First Quarter 2020 Albemarle Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

各位女士、先生，大家好，歡迎參加 Albemarle 2020 年第一季財報電話會議。（接線員指示）提醒各位，本次會議將被錄音。

I would like to introduce your host for today's conference, Ms. Meredith Bandy, Vice President of Investor Relations and Sustainability. Ma'am, please go ahead.

我想介紹今天會議的主持人，投資人關係與永續發展副總裁 Meredith Bandy 女士。女士，請開始。

All right. Thank you and welcome to Albemarle's First Quarter 2020 Earnings Conference Call.

好的。謝謝各位，歡迎參加 Albemarle 2020 年第一季財報電話會議。

Our earnings were released after the close of market yesterday, and you'll find the press release, earnings presentation and non-GAAP reconciliations posted on our website in the Investors section, www.albemarle.com.

我們的財報已於昨日收盤後發布，您可在我們網站投資人專區 www.albemarle.com 找到新聞稿、財報簡報以及非 GAAP 調節表。

Joining me on the call today are Luke Kissam, former Chief Executive Officer; Kent Masters, current Chief Executive Officer; Scott Tozier, Chief Financial Officer; Raphael Crawford, President, Catalyst; Netha Johnson, President, Bromine Specialties; and Eric Norris, President, Lithium, are also available for Q&A.

今天與我一同參與電話會議的有前任執行長 Luke Kissam；現任執行長 Kent Masters；財務長 Scott Tozier；催化劑事業群總裁 Raphael Crawford；溴系特用化學品事業群總裁 Netha Johnson；以及鋰事業群總裁 Eric Norris，也將出席問答環節。

As a reminder, some of the statements made during this conference call, including our outlook, expected company performance, expected COVID-19 impacts and proposed expansion projects may constitute forward-looking statements within the meaning of federal securities laws. Please note the cautionary language about forward-looking statements contained in our press release, that same language applies to this call.

提醒各位，本次電話會議中的部分陳述，包括我們的展望、預期公司表現、預期 COVID-19 影響以及擬議的擴產專案，可能構成聯邦證券法所定義的前瞻性陳述。請留意我們新聞稿中關於前瞻性陳述的警示性語言；同樣的語言亦適用於本次電話會議。

Please also note that some of our comments today refer to financial measures that are not prepared in accordance with GAAP. A reconciliation of these measures to GAAP financial measures can be found in our earnings release and the appendix of our presentation, both of which are on our website.

也請注意，我們今天的部分評論提及未依 GAAP 編製的財務衡量指標。這些指標與 GAAP 財務指標之調節表可在我們的財報新聞稿及簡報附錄中找到，兩者皆已發布於我們網站。

With that, I'll turn the call over to Luke.

接下來，我把電話交給 Luke。

Thanks, Meredith, and good morning, everybody. I certainly hope everybody is healthy and safe. I'd like to take this opportunity to welcome Kent Masters as Albemarle's new CEO.

謝謝你，Meredith，各位早安。我衷心希望大家都健康平安。我想藉此機會歡迎 Kent Masters 出任 Albemarle 的新任執行長。

Since Kent joined the Board in 2015, he's been one of my most trusted advisers and mentors. Kent has a proven track record, in good times and in bad, as a successful CEO of a publicly-traded company. And he thoroughly understands what is expected of a leader in that role.

自 Kent 於 2015 年加入董事會以來，他一直是我最信賴的顧問與導師之一。Kent 在景氣好與景氣差的時候，都展現出作為上市公司成功執行長的卓越實績，並且他完全了解擔任該職務的領導者所被期待的責任。

I'm confident that Kent will continue to work with our Board and the entire Albemarle team to position the company for future success and to deliver long-term value for our customers, our employees, shareholders and other stakeholders.

我相信 Kent 將持續與我們的董事會及整個 Albemarle 團隊合作，為公司未來成功奠定定位，並為我們的客戶、員工、股東及其他利害關係人創造長期價值。

With that, I'll turn it over to Kent.

接下來，我把時間交給 Kent。

Thank you, Luke. It's good to be here today. I'm excited for the opportunity, and I look forward to meeting with members of the investment community virtually and eventually in person when it's safe for us to do so. As Luke mentioned, I joined the Board in 2015 with the acquisition of Rockwood where I had been on the Board -- where I've been a Board member there since 2007. Over the past 5 years, I've worked closely with Luke and was actively involved with my Board colleagues in establishing the company's purpose and values, which are core to our identity.

謝謝你，Luke。今天能在這裡我很高興。我對這個機會感到振奮，也期待能以線上方式、並在安全可行時最終親自與投資界的成員見面。如 Luke 所提到，我於 2015 年因收購 Rockwood 而加入董事會；我自 2007 年起即擔任 Rockwood 董事會成員。過去 5 年來，我與 Luke 密切合作，並與董事會同仁積極參與建立公司的使命與價值觀，而這些是我們身分認同的核心。

What excites me about Albemarle is the innovation and leadership we bring to our markets and the prospects we have for future growth. We have earned an enviable position in our markets. And with our strong strategy and values, we will build on that legacy for years to come.

讓我對 Albemarle 感到興奮的是，我們在市場中帶來的創新與領導力，以及我們未來成長的前景。我們已在所處市場中建立令人稱羨的地位。憑藉我們強健的策略與價值觀，我們將在未來多年持續延續並深化這份傳承。

On today's call, I will cover a high-level overview of the current environment, our actions in light of COVID-19 and our capital allocation priorities. Scott will review the first quarter financials, provide an update on cost savings and review our outlook. First, I want to emphasize that the safety and welfare of our people is our highest priority. We are taking multiple actions to protect our employees, serve our customers and help fight the spread of COVID-19.

在今天的電話會議中，我將就當前環境、我們因應 COVID-19 所採取的行動，以及資本配置優先順序做高層次的概述。Scott 將回顧第一季財務表現，更新成本節省進度並說明我們的展望。首先，我要強調，我們員工的安全與福祉是我們的最高優先事項。我們正採取多項行動以保護員工、服務客戶，並協助遏止 COVID-19 的擴散。

Thankfully, to date, our sites are operating without material impact related to the pandemic. I deeply appreciate the courage and continued support of the frontline essential workers in our communities and our dedicated Albemarle employees who continue to ensure safe operations at our facilities and offices worldwide.

值得慶幸的是，截至目前，我們各據點的營運未因疫情而受到重大影響。我由衷感謝我們社區第一線必要工作者的勇氣與持續付出，也感謝 Albemarle 敬業的員工持續確保我們在全球各地的廠區與辦公室安全運作。

Yesterday, we released first quarter results, including net income of $107 million or $1.01 per share. Adjusted EBITDA of $196 million was down 13% from prior year. We have previously communicated the outlook for first quarter EBITDA to be down about 25% from prior year. Ultimately, we beat that outlook due to better sales in bromine and lithium and better-than-expected cost reductions.

昨天，我們公布了第一季業績，包括淨利 1.07 億美元，或每股 1.01 美元。調整後 EBITDA 為 1.96 億美元，較去年同期下降 13%。我們先前曾溝通第一季 EBITDA 展望約較去年同期下降 25%。最終我們優於該展望，主因溴與鋰的銷售表現較佳，以及成本降低幅度優於預期。

Of course, there will be impacts to all of our businesses related to COVID-19. The timing, duration and severity of those impacts will vary for each business. Given the degree of uncertainty, we are withdrawing our full year 2020 outlook. We plan to reinstate long-term guidance as soon as it is practical to do so. In the meantime, we are temporarily introducing quarterly guidance that Scott will walk you through in a few minutes.

當然，COVID-19 將對我們所有業務造成影響。這些影響的發生時點、持續時間與嚴重程度，將因各業務而異。鑑於不確定性程度，我們撤回 2020 年全年展望。我們計畫在可行時儘快恢復長期指引。在此期間，我們暫時改為提供季度指引，Scott 將在幾分鐘後為各位說明。

We have evaluated our capital allocation priorities in light of the current environment and are focusing on -- we are focusing our efforts on preserving cash and maintaining our dividend. That means taking preemptive measures to bolster our balance sheet and maintain financial flexibility. We are also stepping up and accelerating cost-savings initiatives that were already underway and introducing short-term cash management plans.

我們已在當前環境下重新評估資本配置優先順序，並將重點放在——我們將重點放在保留現金並維持股利。這意味著採取預防性措施以強化資產負債表並維持財務彈性。我們也將加速並擴大原已進行中的成本節省計畫，同時導入短期現金管理方案。

We will remain focused on controlling what is within our control. And we'll continue to act in the best interest of our shareholders, employees, customers and other stakeholders to ensure success in these uncertain times.

我們將持續專注於掌控我們能掌控的事項，並將繼續以股東、員工、客戶及其他利害關係人的最佳利益為依歸採取行動，確保在這些不確定時期仍能成功。

Right now, ensuring success means responding to COVID-19 in a way that protects our employees, customers, suppliers and communities. Our Chinese operations were the first to be impacted by the virus. We have been able to take those early learnings from our teams in China and apply them around the globe.

目前，確保成功意味著以能保護員工、客戶、供應商與社區的方式回應 COVID-19。我們在中國的營運最早受到病毒影響。我們已能將中國團隊的早期經驗教訓，應用到全球各地。

In early March, we created a global cross-functional pandemic response team to recommend, develop and implement strategies to respond to the pandemic. Albemarle's leadership team meets almost daily to review and take actions on recommendations from that team. In uncertain times, communication is critical, and we are in frequent dialogue with our employees around the world. To help our employees stay safe and healthy, we have implemented protocols, including restricting travel, implementing work from home for nonessential personnel, and adjusting shifts, increasing hygiene practices and requiring social distancing for essential workers in our plants.

在 3 月初，我們成立了全球跨職能的疫情應變團隊，負責建議、制定並落實因應疫情的策略。Albemarle 的領導團隊幾乎每天都會開會，檢視並採取該團隊建議的行動。在不確定的時期，溝通至關重要，我們與全球員工保持頻繁對話。為協助員工維持安全與健康，我們已實施多項規範，包括限制差旅、讓非必要人員居家辦公，以及調整輪班、加強衛生措施，並要求廠區必要工作者保持社交距離。

To date, we have had very few confirmed cases. However, availability of testing varies by region. A small number of employees have self-quarantined due to prior travel, exposure to a COVID positive individual or presenting mild flu, mild cold or flu-like symptoms. We are thankful that the number of people directly impacted by COVID-19 has been trending down across the globe, and we see this as evidence that the precautions we are taking are working.

截至目前，我們僅有極少數確診案例。然而，各地區的檢測可得性不一。少數員工因先前旅行史、接觸 COVID 陽性個案，或出現輕微流感、輕微感冒或類流感症狀而進行自我隔離。我們很欣慰全球直接受 COVID-19 影響的人數呈下降趨勢，並將此視為我們所採取的預防措施正在發揮作用的證據。

We are communicating frequently with our customers and suppliers to help us manage supply and demand issues as they arise. To date, our plants have operated with minimal impacts other than in China where we operated at reduced rates for 2 weeks at the first -- during the first quarter.

我們與客戶及供應商保持頻繁溝通，以便在供需問題出現時協助我們加以管理。截至目前，我們的工廠營運所受影響有限，僅中國在第一季初曾以較低產能運轉 2 週。

For the health and welfare of our business partners, we have halted customer visits to our plant sites and have implemented plant-entry protocols for safe and efficient deliveries. Logistics remain a concern across all of our businesses as trucking and shipping companies struggle with new demand patterns and border requirements. We are working through these challenges to keep our customers supplied.

為了我們商業夥伴的健康與福祉，我們已暫停客戶到廠參訪，並實施廠區入場規範，以確保交付作業安全且有效率。由於卡車運輸與航運公司面臨新的需求型態與邊境要求，物流仍是我們所有業務的共同疑慮。我們正努力克服這些挑戰，以持續供應客戶。

As the pandemic continues, Albemarle is supporting our communities in the fight against COVID-19. We are providing mask and PPE to frontline health and relief workers and donations and grants to help fight hunger and improve access to online learning. We are collaborating with universities, local disaster relief funds, trade organizations and other grantors to extend the reach of our efforts. To date, we have distributed more than $1 million to organizations around the globe.

隨著疫情持續，Albemarle 正在支持我們的社區共同對抗 COVID-19。我們提供口罩與個人防護裝備（PPE）給第一線醫護與救援人員，並透過捐款與補助協助對抗飢餓、改善線上學習的可近性。我們也與大學、地方災害救助基金、產業公協會及其他補助提供者合作，以擴大我們行動的影響力。截至目前，我們已向全球各地的組織發放超過 100 萬美元。

Some of our products are also used in the fight against COVID-19. For example, our flame retardants are used in electrical medical equipment, such as ventilators. Our hydrobromic acid product is a catalyst in the manufacturer of PET for protective clothing in hospitals. We produce a line of water treatment products and intermediates used in cleaning products and disinfectants. And at our plant in Germany, we are producing hand sanitizer for the local community. While these products are not financially significant to our business, we are proud to do our part to protect against the spread of COVID-19.

我們的部分產品也被用於對抗 COVID-19。例如，我們的阻燃劑用於呼吸器等電動醫療設備。我們的氫溴酸產品是製造 PET 的催化劑，而 PET 可用於醫院防護衣物。我們生產一系列水處理產品與中間體，供清潔用品與消毒劑使用。此外，在德國的工廠，我們正為當地社區生產乾洗手。雖然這些產品對我們的財務貢獻並不顯著，但我們很自豪能盡一份心力，協助防止 COVID-19 擴散。

The extent of the economic impact of the global pandemic remains unclear, but I am confident that the actions we are taking to adapt to current market conditions will position us to execute our strategy across the cycle.

全球疫情對經濟造成的影響程度仍不明朗，但我有信心，我們為因應當前市場狀況所採取的行動，將使我們能在景氣循環的各階段持續執行我們的策略。

Now I'd like to set the groundwork for our capital allocation priorities. Our first priorities are to fund our dividend and maintain financial flexibility, and that is unchanged in the current environment. 2020 is expected to be Albemarle's 26th consecutive year of dividend increases, and we remain committed to shareholder returns. We are also committed to maintaining our investment grade credit rating.

現在我想為我們的資本配置優先順序奠定基礎。我們的首要任務是為股利提供資金並維持財務彈性，而在目前環境下這一點並未改變。預期2020年將是Albemarle連續第26年提高股利，我們仍致力於為股東創造回報。我們也致力於維持投資等級的信用評等。

Execution of our other capital allocation priorities have shifted in this environment. First, all capital projects are being examined for opportunities to preserve cash and spending. Our 2 biggest capital projects, La Negra III and IV and Kemerton are being slow walked to preserve capital in the near term. We are also reducing our sustaining capital spend with an eye to maintaining safety in critical maintenance projects.

在此環境下，我們其他資本配置優先事項的執行已經有所調整。首先，我們正在檢視所有資本專案，以尋找保留現金與支出的機會。我們兩個最大的資本專案La Negra III與IV以及Kemerton，短期內將放慢推進以保留資本。我們也將降低維持性資本支出，同時確保關鍵維修專案的安全維持。

Second, we are taking a disciplined and thoughtful approach to investments, including M&A and joint ventures, and we'll continue to act in the best interest of our shareholders. Lastly, while our share repurchase authorization remains in place, there are no buybacks planned in this environment.

第二，我們對投資（包括併購與合資）採取嚴謹且審慎的方法，並將持續以符合股東最佳利益的方式行動。最後，雖然我們的庫藏股回購授權仍然有效，但在目前環境下沒有規劃進行回購。

So with that as a backdrop, I'll turn it over to Scott for more detail.

在這樣的背景之下，我把時間交給Scott，請他提供更多細節。

Thank you, Kent. Albemarle generated first quarter net sales of $739 million, a decrease of about 11% compared to the prior year. This reduction was primarily driven by reduced volume and price in lithium as expected coming into the year and reduced volumes in catalysts due in part to low transportation fuel demand caused by COVID-19.

謝謝你，Kent。Albemarle第一季淨銷售額為7.39億美元，較去年同期下降約11%。這一下降主要如年初預期，來自鋰業務的銷量與價格下滑，以及催化劑業務的銷量下降；其中部分原因是COVID-19導致運輸燃料需求偏低。

GAAP net income was $107 million or $1.01 per diluted share. There were very minimal adjustments this quarter with adjusted earnings of $1 per diluted share. Corporate costs, including SG&A, R&D and interest and financing expenses were broadly in line with the prior year period. As Kent stated, adjusted EBITDA was $196 million, a decrease of 13% from the prior year, but above the previously communicated outlook.

GAAP淨利為1.07億美元，或每股稀釋盈餘1.01美元。本季調整項目非常少，調整後每股盈餘為1.00美元。公司成本（包括SG&A、研發以及利息與融資費用）整體上與去年同期大致一致。如Kent所述，調整後EBITDA為1.96億美元，較去年同期下降13%，但高於先前溝通的展望。

Turning to Slide 8 for a look at EBITDA by business segment. Adjusted EBITDA was down $30 million over the prior year. Solid performance in bromine and our FCS businesses and company-wide cost savings partially offset top line declines in lithium and catalyst. Lithium's adjusted EBITDA declined by $40 million versus the prior year, excluding currency impacts. Pricing and volumes were down about 10% each, offset by product and customer mix and cost-savings initiatives.

接著看投影片8，了解各事業部門的EBITDA。調整後EBITDA較去年同期減少3,000萬美元。溴素與我們FCS業務的穩健表現，以及全公司範圍的成本節省，部分抵銷了鋰與催化劑營收下滑。鋰業務的調整後EBITDA（不含匯率影響）較去年同期下降4,000萬美元。價格與銷量各下降約10%，但部分被產品與客戶組合以及節省成本措施所抵銷。

As you know, in late 2019, we gave 1-year price concessions to many of our battery material customers. Also, as expected, customers reduced Q1 2020 shipments as they work through excess inventories from late 2019. In catalyst, adjusted EBITDA declined $11 million, excluding currency impacts. Both FCC and HPC volumes were down this quarter, but for different reasons. The FCC decline was caused by reduced consumption of transportation fuel. Stay-at-home orders and travel restrictions mean refiners don't have to run as hard to meet reduced demand. HPC volumes were impacted by logistics challenges as the world's cargo fleet and truck transportation adjusted to slowing global demand. Partially offsetting these challenges, the catalyst business benefited from lower raw materials, better product mix and cost reduction efforts.

如各位所知，2019年底我們對許多電池材料客戶提供為期一年的價格讓利。此外，如預期般，客戶在2020年第一季減少出貨，以消化2019年底的過剩庫存。在催化劑方面，調整後EBITDA（不含匯率影響）下降1,100萬美元。本季FCC與HPC銷量皆下滑，但原因不同。FCC下滑是因運輸燃料消費降低所致。居家令與旅行限制意味著煉油廠不必高負荷運轉以滿足下降的需求。HPC銷量則受到物流挑戰影響，因全球貨運船隊與卡車運輸在全球需求放緩下進行調整。部分抵銷上述挑戰的是，催化劑業務受惠於原料成本下降、更佳的產品組合以及降本努力。

Bromine's adjusted EBITDA was up $5 million excluding currency impacts. Improved average realized pricing, cost savings and lower minority interest expense more than offset lower volume. The Q1 order book was strong, but logistics challenges prevented us from filling all of those orders during the quarter. Our corporate and other category is driven primarily by our SDS business. SDS EBITDA was up nearly $16 million on higher volumes and product mix.

溴素的調整後EBITDA（不含匯率影響）增加500萬美元。平均實現價格改善、成本節省以及少數股權費用下降，足以抵銷銷量下滑。第一季訂單簿表現強勁，但物流挑戰使我們無法在本季完成所有訂單出貨。我們的「公司及其他」類別主要由SDS業務帶動。SDS EBITDA因銷量增加與產品組合改善而上升近1,600萬美元。

While Q1 results were better than we expected, we are operating in uncertain times. As Kent discussed, maintaining our strong financial position is a top priority, and we remain committed to maintaining our investment grade rating. We have ample liquidity of about $1.7 billion as of quarter end, consisting of $553 million of cash, including $250 million drawn on our revolver plus $715 million remaining under our $1 billion revolver; $200 million available under our delayed draw term loan, which we drew in April; and $190 million on other available credit lines. Since quarter close, we have issued additional commercial paper as that market returned to more normal terms and tenors.

雖然第一季結果優於我們預期，但我們正處於不確定的時期。如Kent所討論，維持我們強健的財務狀況是首要任務，我們仍致力於維持投資等級評等。截至季末，我們擁有約17億美元的充足流動性，包括：5.53億美元現金（其中包含自循環信貸額度提用的2.5億美元）以及10億美元循環信貸額度下尚餘的7.15億美元；延遲提用定期貸款下可用的2億美元（我們已於4月提用）；以及其他可用信用額度中的1.9億美元。自季末以來，隨著商業本票市場回到較正常的條件與期限，我們也額外發行了更多商業本票。

In terms of debt maturity, we are pretty well termed out. The only short-term debt is from commercial paper. Our revolver is not due until 2024, but we may choose to repay that sooner. Otherwise, the nearest-term maturities are $444 million due at the end of 2021. The investment-grade market is open to us, and I'm confident we'll be able to repay that or roll it forward. The divestitures of PCS, a portion of our catalyst business, and FCS are being slowed down due to the COVID-19 travel restrictions. The potential buyers remain interested and both transactions are potential liquidity events as we get back to normal.

就債務到期結構而言，我們的期限配置相當完善。唯一的短期債務來自商業本票。我們的循環信貸額度要到2024年才到期，但我們可能選擇更早償還。除此之外，最近期的到期債務為4.44億美元，將於2021年底到期。投資等級市場對我們仍然開放，我有信心我們能夠償還或展期。由於COVID-19的旅行限制，PCS（我們催化劑業務的一部分）以及FCS的資產出售進度正在放緩。潛在買方仍保持興趣，且隨著情況回歸正常，這兩筆交易都可能成為流動性事件。

Turning to Slide 10 for more on our cost savings. We have had a strong history of generating operating cash, including $359 million generated during the Great Recession in 2009. We expect to continue to generate significant operating cash, thanks to industry-leading positions in all of our businesses and through active cost management. As communicated during the fourth quarter earnings call, we are accelerating the 2020 sustainable cost-savings initiative. These were projects that were already identified and underway when COVID-19 hit. We now expect to achieve cost reductions of $50 million to $70 million this year and reach run rate savings of at least $100 million by the end of 2021. Basically, we're bringing forward about $10 million to $20 million of cost savings into 2020.

接著看投影片10，進一步說明我們的成本節省。我們在創造營運現金方面有著強勁的歷史，包括在2009年大衰退期間仍創造了3.59億美元。我們預期將持續產生可觀的營運現金，這得益於我們在各項業務中的產業領先地位以及積極的成本管理。如同在第四季法說中所溝通，我們正在加速2020年的永續成本節省計畫。這些專案在COVID-19爆發前就已被辨識並在推進中。我們現在預期今年可達成5,000萬至7,000萬美元的成本降低，並在2021年底前達到至少1億美元的年化節省（run rate）。基本上，我們把約1,000萬至2,000萬美元的成本節省提前到2020年實現。

Based on our current order book and cost-reduction actions, we now expect Q2 2020 adjusted EBITDA in the range of $140 million to $190 million. Lithium's Q2 2020 EBITDA is expected to be down year-over-year but up slightly on a sequential basis. The Q2 order book continues to look solid, albeit with some softness in technical grades. Specialties and technical grades make up about 40% of lithium revenues and have a pretty short supply chain. Lags are usually just a few months going into and coming out of a recession.

基於目前的訂單簿與降本行動，我們現在預期2020年第二季調整後EBITDA將落在1.4億至1.9億美元之間。鋰業務2020年第二季EBITDA預期將較去年同期下降，但較第一季略有回升。第二季訂單簿看起來仍然穩健，儘管技術級產品略有走弱。特種與技術級產品約占鋰營收的40%，其供應鏈相當短。無論進入或走出衰退，通常落後期只有幾個月。

Specialties and technical grade products usually grow at or above GDP growth rates and are driven by consumer spending and industrial production. The energy storage market makes up about 60% of our lithium sales and has a relatively long supply chain with a 1- to 2-quarter lag on battery-grade sales, both in the downturn and in the recovery.

特種與技術級產品通常以等同或高於GDP的速度成長，主要受消費支出與工業生產帶動。儲能市場約占我們鋰銷售的60%，其供應鏈相對較長；在景氣下行與復甦期間，電池級銷售通常會落後1到2個季度。

Battery-grade customers continue to forecast a stable order pattern in the second quarter as cathode and battery manufacturers catch up on backlog orders placed prior to COVID-19. We expect to see the impact of recent OEM automotive shutdowns flow through the supply chain in the second half. By year-end, OEM automotive restarts are expected to be supportive of battery and lithium demand. China OEM production has started back up, and some European plants are scheduled to restart production in mid-May.

電池級客戶在第二季仍預測訂單型態穩定，因為正極材料與電池製造商正在消化COVID-19之前下的積壓訂單。我們預期近期OEM汽車停工的影響將在下半年沿供應鏈逐步顯現。到年底，OEM汽車復工預期將有助於支撐電池與鋰的需求。中國OEM產量已開始回升，部分歐洲工廠也預計在5月中旬恢復生產。

Looking beyond Q2 for each of our businesses is difficult and nowhere is that more the case than with lithium. The electric vehicle market that is now the primary growth driver for lithium was not mature enough during the global financial crisis to provide much context for today. Nevertheless, we expect the EV growth curve to be delayed by at least 1 year.

要展望第二季之後各項業務的走勢並不容易，而鋰業務尤其如此。如今作為鋰主要成長驅動力的電動車市場，在全球金融危機期間尚未成熟，難以為今日提供太多參考。儘管如此，我們預期電動車的成長曲線至少將延後1年。

Bromine Q2 order patterns are starting to show the impact from COVID-19. They are off expectations by about 10% and down sequentially. We're seeing some indications that customers may push orders from late May or June into the third quarter. And net-net, we expect first half EBITDA to be down year-over-year, with Q2 EBITDA down about 20% from prior year.

溴素第二季的訂單型態開始顯示COVID-19的影響。相較原先預期約低10%，且較前一季下滑。我們看到一些跡象顯示，客戶可能把原本5月底或6月的訂單推遲到第三季。整體而言，我們預期上半年EBITDA將較去年同期下降，其中第二季EBITDA預期較去年同期下降約20%。

We do expect softness to continue into Q3 related to slowdowns in automotive, consumer electronics, appliances and construction, all as a result of the knock-on impacts of COVID-19. Based on our position in the supply chain, we typically see a lag of at least one or 2 quarters and in some cases, longer.

我們確實預期與汽車、消費性電子、家電與建築相關的疲弱將延續到第三季，這些都源自COVID-19的連鎖影響。依我們在供應鏈中的位置，我們通常會看到至少1到2個季度的落後期，在某些情況下甚至更久。

Our bromine business has been profitable every year for 20 years. In the global financial crisis, bromine's 2009 net sales were down 30% year-over-year, and EBITDA margins fell to 16% compared to a more normal margin in the high 20% or low 30% range.

我們的溴素業務已連續20年每年都獲利。在全球金融危機期間，溴素2009年的淨銷售額較去年同期下降30%，EBITDA利潤率降至16%，相較於較正常情況下約落在高20%或低30%的利潤率水準。

Then the business rebounded very strongly in 2010 and 2011, back to, and in some markets, above prerecession levels, thanks to pent-up demand. Compared to 2009, bromine today has a tighter supply-demand balance going into the downturn. We've also seen some competitor-specific supply disruptions, which somewhat muddied the water and they partially offset some of the demand softness. Bromine is also much more diversified as a business today. It tends to be relatively GDP-driven with customers across multiple end user markets.

接著，受累積需求釋放帶動，2010 年與 2011 年業務強勁反彈，回到、且在部分市場甚至高於衰退前水準。相較於 2009 年，如今溴素在進入景氣下行時的供需平衡更為吃緊。我們也看到一些競爭對手特定的供應中斷，這在一定程度上讓情況更難判讀，並部分抵消了需求走弱。如今溴素業務的多元化程度也高得多。它通常相對受 GDP 驅動，客戶分布於多個終端使用市場。

Flame retardants make up about 50% of sales and are used in electronics, automotive, construction and appliances. Oilfield represents up to 10% of sales, and other industrial uses include PET and agriculture. This diversity allows us to shift sales across markets into the best-performing industries.

阻燃劑約占銷售額的 50%，用於電子、汽車、建築與家電。油田業務最多約占銷售額的 10%，其他工業用途包括 PET 與農業。這種多元化讓我們能在各市場間調整銷售配置，轉向表現最佳的產業。

Finally, as you know, our catalyst business includes 2 primary product groups: FCC catalyst and HPC catalyst. Across the cycle, FCC and HPC are fairly similar in size, but the HPC business is much lumpier. Customers order HPCs only every 2 to 5 years when they perform turnarounds at refineries. Therefore, HPC demand is driven by customer turnaround schedules, whereas FCC demand is driven by transportation fuel consumption and miles driven. In a typical recession, there's very minimal impact to FCCs. Oil pricing falls and miles driven goes up, meaning more fuel demand and more catalyst demand. HPCs, on the other hand, tend to see sharply lower demand when oil pricing contracts, refineries run at lower rates and are able to push out turnarounds and conserve cash.

最後，如各位所知，我們的催化劑業務包含 2 個主要產品群：FCC 催化劑與 HPC 催化劑。就景氣循環而言，FCC 與 HPC 規模相當，但 HPC 業務的波動性更大。客戶只有在煉油廠進行大修時才會每 2 到 5 年訂購一次 HPC。因此，HPC 需求由客戶大修排程驅動，而 FCC 需求則由運輸燃料消耗與行駛里程驅動。在典型的衰退中，FCC 受到的影響非常有限。油價下跌、行駛里程上升，意味著燃料需求增加、催化劑需求也增加。相較之下，當油價下挫時，HPC 往往會出現需求大幅下降，因為煉油廠以較低負荷運轉，能夠延後大修並保留現金。

In 2008 and '09 and in 2014 and '15, the oil price corrected by more than 50% in a matter of months. In both cases, FCC earnings were up slightly, but HPC earnings were down about 30% in 2009 and 50% in 2015. In the current economic environment, we do expect HPCs to be down, especially in the second half. But in this case, FCCs will also be down as widespread stay-at-home orders and travel restrictions lead to dramatically lower miles driven in transportation fuel consumption.

在 2008 與 2009 年，以及 2014 與 2015 年，油價在數月內修正超過 50%。兩次情況下，FCC 獲利都略有上升，但 HPC 獲利在 2009 年下滑約 30%，在 2015 年下滑約 50%。在目前的經濟環境下，我們預期 HPC 會下滑，尤其是在下半年。但這一次，FCC 也會下滑，因為廣泛的居家令與旅行限制導致運輸燃料消耗的行駛里程大幅下降。

In Q2, we expect to see a full quarter impact of the travel restrictions that began in the first quarter. To date, we've seen minimal changes to the FCC order book for Q2. But based on the experience of prior oil price reductions, we expect to see a shift of HPC orders out of second half and into 2021. The timing and extent of the downturn is unclear and a lot depends on how long travel restrictions are in place, how long the oil price remains low and how much crude and refined product inventory is built up when restrictions are lifted.

在第二季，我們預期會看到第一季開始的旅行限制帶來的完整一季影響。截至目前，我們看到第二季 FCC 訂單簿的變化不大。但根據以往油價下跌的經驗，我們預期下半年部分 HPC 訂單將延後至 2021 年。景氣下行的時點與幅度仍不明朗，且很大程度取決於旅行限制維持多久、油價維持低檔多久，以及在限制解除時原油與成品油庫存累積到何種程度。

Given the current economic environment, we are executing our downturn playbook for short-term cash management and have already activated many of these tactics. In terms of variable costs, restricted travel due to COVID-19 will continue while also strictly limiting professional services and consultants.

鑑於目前的經濟環境，我們正在執行景氣下行應對手冊，以進行短期現金管理，且已啟動其中許多策略。在變動成本方面，因 COVID-19 造成的旅行限制將持續，同時我們也將嚴格限制專業服務與顧問支出。

On fixed costs, we are reducing capital expenditures and limiting hiring, overtime and contractors. Senior executives and the Board have also agreed to a temporary 20% cut to base pay. We're also cutting sustaining and growth capital spending. We will continue to maintain our health, safety and environmental standards. Beyond that, we're taking a critical look at all capital spending across our businesses.

在固定成本方面，我們正降低資本支出並限制招募、加班與承包商使用。高階主管與董事會也同意暫時將基本薪資下調 20%。我們也在削減維持性與成長性資本支出。我們將持續維持健康、安全與環境標準。在此之外，我們正對各事業的所有資本支出進行嚴格檢視。

The most meaningful capital spend is at our lithium expansion projects, La Negra III and IV and Kemerton. We are slowing work on these projects to conserve cash and to reassess the demand requirement when the battery industry recovers. We have maintained optionality to defer additional capital or accelerate these projects, depending on market conditions.

最具意義的資本支出在我們的鋰擴產專案：La Negra III 與 IV，以及 Kemerton。我們正放緩這些專案的工作以保留現金，並在電池產業復甦時重新評估需求要求。我們保留彈性，可視市場狀況延後追加資本或加速推進這些專案。

Including cuts to sustaining and major project capital, we now expect our CapEx to be in the range of $850 million to $950 million, a 15% reduction from the midpoint of previous guidance. Working capital averages about 25% of sales. So we'd expect to see some reduction here as revenue declines. We're also actively managing working capital to see further improvements, including seeking payment term extensions from vendors, accelerating collection of pass-through receivables and actively reducing inventories. We have begun shutdowns of some catalyst production and have plans in place to slow down our plant as needed, assuming demand declines as recent customer shutdowns work their way through supply chains.

包含維持性與重大專案資本的削減後，我們目前預期資本支出（CapEx）將落在 8.5 億至 9.5 億美元區間，較先前指引中位數下調 15%。營運資金平均約占銷售額的 25%，因此隨著營收下滑，我們預期此處也會有所下降。我們也正積極管理營運資金以進一步改善，包括向供應商爭取延長付款條件、加速回收代收代付應收款，並主動降低庫存。我們已開始關停部分催化劑產能，並已制定計畫在需要時放慢工廠運轉，假設近期客戶停工的影響沿供應鏈傳導後導致需求下滑。

All told, the short-term cash management actions detailed here are expected to save the company about $25 million to $40 million per quarter. That will be in addition to the CapEx reductions and sustainable cost savings we've just discussed.

總體而言，此處所述的短期現金管理行動，預期每季可為公司節省約 2,500 萬至 4,000 萬美元。這將是在我們剛討論的資本支出削減與可持續成本節省之外的額外效益。

We're working hard to cut costs but also minimize the impact to our employees. Unfortunately, depending on the length and severity of the downturn, we may idle additional production sites or take more drastic cost actions, if necessary. These actions are difficult and not something that we undertake lightly, but they are meaningful to help position Albemarle to be stronger for longer.

我們正努力削減成本，同時也盡量將對員工的影響降到最低。不幸的是，視景氣下行的時間長短與嚴重程度而定，我們可能需要讓更多生產據點暫停運作，或在必要時採取更激烈的成本措施。這些行動很艱難，我們不會輕率採取，但它們對於協助 Albemarle 在更長時間內保持更強韌的定位具有重要意義。

Now I'll turn the call back over to Kent.

現在我把電話交回給 Kent。

Thanks, Scott. Current economic conditions are challenging. Albemarle is an industry leader in all 3 of our core businesses. We believe in the long-term growth prospects in all of these businesses, but our immediate challenge is to manage through this crisis. We will act on cost-reduction measures quickly to preserve cash and maintain our financial flexibility. We will also be poised to respond to meet customer needs when the market returns. We remain confident in our strategy, and we will modify execution of that strategy to further position Albemarle for success.

謝謝，Scott。目前的經濟狀況充滿挑戰。Albemarle 在我們 3 項核心業務中皆為產業領導者。我們相信這些業務的長期成長前景，但眼前的挑戰是要管理並度過這場危機。我們將迅速採取降本措施以保留現金並維持財務彈性。當市場回溫時，我們也將做好準備以回應並滿足客戶需求。我們對策略仍具信心，並將調整該策略的執行方式，以進一步讓 Albemarle 站上成功的位置。

Great. (Operator Instructions) Thank you. And Michelle, please proceed with the Q&A.

很好。（接線員指示）謝謝。Michelle，請開始問答環節。

(Operator Instructions) Our first question comes from the line of Steve Byrne with Bank of America.

（接線員指示）我們的第一個問題來自美國銀行（Bank of America）的 Steve Byrne。

This is Matt DeYoe on for Steve. I wanted to dig into the guidance a little bit more and see if you could kind of point out the drivers, which would result in either the low end or the high end of the guidance range. It seems like your direct segment commentary points to something like $150 million. How do you get to that $190 million number?

我是代 Steve 提問的 Matt DeYoe。我想更深入了解一下指引，看看你們是否能指出哪些驅動因素會導致指引區間落在低端或高端。看起來你們對各事業部的直接評論指向大約 1.5 億美元。你們如何達到 1.9 億美元這個數字？

This is Scott. So I think a couple of key things around uncertainty. One is, in each of our businesses, we've got a pretty good visibility through the end of May, beginning of June in terms of our order book and are executing to that. I think the uncertainty comes in each of the businesses as we get through the month of May, particularly with catalyst in terms of how deep the slowdowns in the refineries will be or if they -- as states start to come back on, how quickly those refineries start back up.

我是 Scott。我認為有幾個與不確定性相關的關鍵點。第一，在我們每一項業務中，就訂單簿而言，我們對到 5 月底、6 月初的能見度相當不錯，並正依此執行。我認為不確定性出現在 5 月之後各業務的走勢，尤其是催化劑方面：煉油廠的放緩會有多深，或是當各州開始復工時，這些煉油廠會多快重啟。

In bromine, it's going to come down, most likely, to some logistics issues and questions around order books getting filled on time. And then in lithium, we do expect that the auto OEM shutdowns will be impacting us in the second half. Right now, the order books look pretty good through June, but they're starting to soften. So there's some variability there as well. So those are the key drivers for us.

在溴素方面，最可能取決於一些物流問題，以及訂單簿能否按時完成交付的疑慮。至於鋰，我們確實預期汽車 OEM 停工會在下半年影響我們。目前訂單簿到 6 月看起來仍不錯，但已開始轉弱，因此那裡也存在一些變動性。以上是對我們而言的關鍵驅動因素。

Okay. And I guess on prior calls, you discussed the potential for overbuilding in battery cells as lithium demand appeared strong despite what we saw was probably a slowdown in autos in 2Q and beyond.

好的。我想在先前的電話會議中，你們曾討論過電池電芯可能過度擴產的情況，因為鋰需求看似強勁，儘管我們看到汽車在第二季及之後可能放緩。

How does this end up playing out? Where do you see downstream product inventories? And I guess, finally, Luke, I want to wish you well. I always appreciate your candor and brevity you brought to the conversations over the years.

這最後會如何發展？你們如何看待下游產品庫存？最後，Luke，我想祝你一切順利。我一直很感謝你多年來在對話中展現的坦率與精簡。

Eric, do you want to take that question?

Eric，你要回答這個問題嗎？

Sure. So Matt, let me tell you what we know about battery cell manufacturers. We -- today, we are seeing and have talked about excess inventories of lithium-bearing products in the value chain. That is being worked up. It's one of the reasons why our first quarter for us was weaker on volumes. We knew that, expected that coming into the quarter.

當然。Matt，我先說我們對電池電芯製造商所了解的情況。我們——目前看到並且也談到，價值鏈中存在含鋰產品的過剩庫存，正在逐步消化。這也是我們第一季出貨量較弱的原因之一；我們在進入該季度時就已知道並預期會如此。

In terms of battery cell manufacture, it's actually the opposite of what you described. The phenomenon we saw during the first quarter, particularly in Europe, was the battery manufacturers having a tough time keeping up with EV demand and production in the months of January and February. That's obviously started to change. But it's one reason why the order books continue for the first and second quarter, we believe, to remain strong. But with these closures, you see it tip down in the second half of the year. It's very hard for us to know what that means in the second half of the year. It's very cloudy. But those are the drivers and phenomenon we're seeing right now.

就電池電芯製造而言，實際上與你描述的相反。我們在第一季看到的現象，特別是在歐洲，是電池製造商在 1 月與 2 月難以跟上電動車需求與產量。這顯然已開始改變。但這也是我們認為第一季與第二季訂單簿仍將維持強勁的原因之一。不過，隨著這些停工，你會看到它在下半年轉弱。我們很難判斷這對下半年意味著什麼，能見度非常低。但以上就是我們目前看到的驅動因素與現象。

And our next question comes from the line of Bob Koort with Goldman Sachs.

我們的下一個問題來自高盛（Goldman Sachs）的 Bob Koort。

I think, Scott, you might have mentioned that you thought maybe the demand curve on lithium was pushed out a year. So I guess I'm trying to ascertain, is that an issue of being episodic for these closures? Is it the issue of a recessionary pressure dampening consumer spending? How do you come to that conclusion? What is sort of the calculus of a 1-year push out for the industry, given that, I guess, a lot of the mandates don't go away and China seems to be cranking back up again?

Scott，我想你可能提到過，你認為鋰的需求曲線可能被往後推遲了一年。所以我想釐清的是：這是因為這些停產/關閉屬於階段性、偶發性的影響嗎？還是因為衰退壓力抑制了消費者支出？你們是如何得出這個結論的？在我看來，很多政策/法規的要求並不會消失，而且中國似乎也正在重新加速復工，在這樣的背景下，對整個產業而言，把時間往後推一年，這個推算的邏輯是什麼？

Yes. It's really based on the current demand in 2020 and the recessionary impacts and some of the modeling that we've been doing. To be honest, we don't know exactly what that curve looks like. And Eric, maybe you can provide a little bit more detail there. But right now, the expectations, even if you look at a source such as IHS, would suggest that the growth curve is going to be pushed out by at least 1 year.

是的。這主要是基於 2020 年當前的需求、衰退的影響，以及我們正在進行的一些模型推演。坦白說，我們並不確切知道那條曲線究竟長什麼樣子。Eric，也許你可以在這裡提供更多細節。不過就目前而言，即便你看像 IHS 這樣的來源，其預期也會顯示成長曲線至少會被往後推遲 1 年。

So Eric, do you want to provide some more information?

那麼 Eric，你要不要補充更多資訊？

Yes. I don't know if I can provide a lot of granularity. Bob, we know that automotive plants, collectively, are closing. Some openings are delayed. Here in the U.S., Tesco's opening is imminent, but has been delayed a few times. There's been openings in Germany so far. There, hopefully, will be more in May. And collectively, if you look at the duration of time that they've been down and look at the supply chain in this one or 2-quarter lag, we would expect that the third quarter is going to -- that the impact of that shutdown is going to impact to the market in the third quarter.

好的。我不確定我能提供很多細節。Bob，我們知道汽車工廠整體而言正在關閉；有些復工也被延後。在美國這邊，Tesco 的開工已迫在眉睫，但已經延後了幾次。德國目前已經有一些工廠復工，希望 5 月還會有更多。整體來看，如果你看它們停工的時間長度，再考量供應鏈存在的一到兩季的落後效應，我們預期第三季將會——也就是說，這次停工的影響會在第三季反映到市場上。

It is much, much harder to ascertain what the consumer impact will be and consumer spending will look like. We do know that regulatory factors in Europe and in China play a role in EV adoption, but we don't know what consumer purchasing will look like thereafter. So that's why, as Scott says, we -- we're only as good as looking at what other people say. And there are widely divergent views on what might happen. When we say we think it might be pushed out a year, that's sort of a consensus view, looking at all the data. And we're just going to have to, as time goes on, scrutinize that and get sharper in understanding it with time. But right now, that's what we've got to work with.

至於消費者端的影響、以及消費支出會呈現什麼樣貌，就更難判斷了。我們確實知道歐洲與中國的監管因素會影響電動車（EV）的採用，但我們不知道之後消費者的購買行為會是什麼樣子。所以如同 Scott 所說，我們只能參考其他人的看法；而對於可能發生的情況，市場上存在非常分歧的觀點。當我們說我們認為可能會往後推一年時，這其實是綜合所有資料後的一種共識性看法。接下來只能隨著時間推進，持續檢視並更精準地理解。但目前我們能依據的就是這些。

And if I could follow up, Scott, on the covenant waiver efforts. Is that -- are you going to attempt to get a net debt measure? And what are the ramifications of seeking that covenant waiver if you do end up violating that covenant?

如果我可以追問一下，Scott，關於契約條款豁免（covenant waiver）的努力：你們是否會嘗試爭取以淨負債（net debt）作為衡量指標？如果你們最後真的違反了該契約條款，那麼尋求豁免會帶來哪些影響？

Yes. Bob, so we're actively in the discussions with the banks, even as we speak. So it's a little bit early to call exactly what the final outcome will be. But the banks have been very, very supportive of Albemarle, given our track record and the capability of our team to deliver. Clearly, a covenant breach is not a good thing. And we're going to take all the actions necessary to make sure we don't breach.

是的。Bob，我們此刻正在與銀行積極討論，所以現在要判斷最終結果還有點早。但鑑於我們的過往紀錄，以及我們團隊的交付能力，銀行一直非常、非常支持 Albemarle。很明顯，違反契約條款不是好事。我們會採取一切必要行動，確保不會違約。

And our next question comes from the line of David Begleiter with Deutsche Bank.

我們的下一個問題來自德意志銀行（Deutsche Bank）的 David Begleiter。

This is David Wang here for Dave. I guess, first of all, your Q1 lithium sales down 18% ex FX. Can you talk about how much of the decline was pricing versus volume? And probably your expectation for lithium pricing for the rest of the year?

我是 David Wang，代 Dave 提問。首先，你們第一季鋰產品銷售（不含匯率影響）下滑 18%。能否談談這個下滑中，有多少是價格因素、多少是銷量因素？以及你們對今年剩餘期間鋰價的預期？

Yes. This is Scott. So the first quarter, lithium was down, as you said. Both price and volume were down about 10%, above equal. And really, as expected on volume, so we're expecting volumes to be down coming into the year. Pricing, in fact, was a little bit better than we expected versus our expectations. So that was a positive surprise for us.

好的。我是 Scott。第一季鋰業務如你所說是下滑的。價格與銷量各自大約下滑 10%，大致相當。就銷量而言，這其實符合預期，因為我們原本就預期今年的銷量會下滑。至於價格，實際上比我們原先預期要好一些，所以對我們來說是個正向的意外。

As you go through the year, our current expectations are still that pricing is going to be down in the mid-teens as we expected coming into the year.

展望全年，我們目前的預期仍是：價格將如同我們年初所預期的那樣，下滑約中十位數百分比（mid-teens）。

And secondly, I guess for the oilfield business in your bromine segment, given producers reducing their capital budgets and especially after a very weak offshore drilling market, what's your expectation on what type of impact do you expect that to have on your bromine business, on the volume side, in the medium term?

第二個問題，我想問你們溴素事業部中的油田業務：在生產商削減資本預算、且離岸鑽探市場特別疲弱的情況下，你們預期這會在中期對你們溴素業務的銷量端造成什麼樣的影響？

Yes. Netha, do you want to take that?

好的。Netha，你要回答這題嗎？

David, this is Netha. As you know, our oilfield business is primarily with deep drilling fluids which is impact we see probably really into 2021, more so than 2020. It's about 9% of our business today. So in the medium term, we really see that impact coming to us next year rather than this year.

David，我是 Netha。如你所知，我們的油田業務主要是深井鑽井液（deep drilling fluids），我們看到的影響可能會延伸到 2021 年，甚至比 2020 年更明顯。目前它約占我們業務的 9%。所以就中期而言，我們認為影響會更多在明年顯現，而不是今年。

And our next question comes from the line of Joel Jackson with BMO Capital Markets.

我們的下一個問題來自 BMO 資本市場（BMO Capital Markets）的 Joel Jackson。

This is Robin on for Joel. Your Greenbushes JV partner is out shopping with a statement in JV, would ALB be willing to increase leverage or issue equity or sell assets to buy out all or some of that stake? And would you be concerned if that controlling stake ends up in another company's hands?

我是 Robin，代 Joel 提問。你們 Greenbushes 合資企業（JV）的夥伴正在對外尋求交易，並在 JV 中發表聲明；Albemarle 是否願意提高槓桿、發行股權或出售資產，以買下該持股的全部或部分？如果那個控股權最後落入另一家公司手中，你們會擔心嗎？

Okay. So we know that Talison is a good project for us, and we're following that process closely, and we'll see where it goes. We know that the Chinese government will probably have influence on where that asset ends up. But we're interested in it. We're following it, but we're also mindful of the current market environment. So there'll be more to come on that, but we're following it very closely.

好的。我們知道 Talison 對我們而言是一個很好的專案，我們正密切關注該流程，並看看後續發展。我們也知道中國政府可能會對該資產最終落點產生影響。但我們對此有興趣，也在追蹤，同時也會留意當前的市場環境。後續會有更多資訊，但我們確實在非常密切地關注。

And just want to follow up on that. Has there been any progress with Tianqi repaying the $100 million that they owe to the Talison JV of the oversight agreement?

我想就此追問一下：關於天齊（Tianqi）依據監督協議（oversight agreement）欠 Talison 合資企業的 1 億美元，是否有任何還款進展？

Yes. So there's a plan in place that we've agreed with them or that Talison has agreed with them. And we expect that they'll meet that plan, and we have actions that we've put in place to mitigate, if, for some reason, they don't meet the plan.

有的。我們已經與他們——或更精確地說，Talison 已經與他們——同意了一個既定的計畫。我們預期他們會遵循該計畫；同時我們也已採取一些措施，以便萬一他們因故未能遵循計畫時，能夠降低風險。

And our next question comes from the line of Jim Sheehan with SunTrust.

我們的下一個問題來自 SunTrust 的 Jim Sheehan。

Could you give some more color on your plans to slow walk the lithium project spending? Are you pushing out those projects by the same time line as your expectations for electric vehicle demands? Or how are you thinking about that?

能否更具體說明你們放慢鋰專案支出的計畫？你們是依照對電動車需求的預期，把這些專案用同樣的時間表往後推嗎？還是你們的思考方式是什麼？

So we're slowing the projects. It's a couple of things, but it's about cash management, but it's also about where they are in their execution. So we're trying not to cross over a demobilization process. So -- that is something we could do if we needed to, but that would be more difficult for us and would change the time line.

我們確實在放慢專案。原因有幾個：一方面是現金管理，另一方面也取決於它們在執行上的進度。我們也在盡量避免跨入撤場/解編（demobilization）的流程。當然，如果有需要我們也可以那麼做，但那對我們會更困難，並且會改變時間表。

So they're being pushed out, what we both -- we think both of those projects stay reasonably close to their time line. And it will change depending on what we see in the market. So we've slowed those. We'll have the opportunity to slow down more or speed them up as we go and as we learn more about what the environment looks like economically as a result of this crisis.

因此它們確實被往後推了一些，但我們認為這兩個專案仍會大致維持在相對接近原本的時間表；而這也會隨著我們看到的市場情況而改變。我們已經放慢了進度；接下來也會有機會在推進過程中、以及在我們更了解這場危機對經濟環境的影響後，進一步放慢或加快。

And in China, what are you seeing in terms of stimulus spending and other incentives to jump-start the electric vehicle sales? Are you expecting more of an impact from that in the second half?

在中國方面，你們看到哪些刺激支出與其他激勵措施，來重啟電動車銷售？你們是否預期下半年會受到更大的帶動？

Eric?

Eric？

Yes. This is Eric, Jim. We've been looking at the same sort of announcements you have, which announced an extension -- a 2-year extension of the incentives for electric vehicles to consumers in China from where they were due to lapse or due to lapse this year, they've been extended. Our expectation, the data we're seeing is that China is improving, recovering from its portion of the pandemic. We hope that's sustained. And the belief is by third parties, which we would subscribe to, that their demand will improve.

好的。我是 Eric，Jim。我們也在關注你所看到的同類公告：中國將原本預計到期、或今年到期的電動車消費者補貼，延長了 2 年。我們的預期是，從我們看到的數據來看，中國正在改善，並從其疫情階段中復甦；我們希望這能持續。第三方的看法——我們也認同——是其需求將會改善。

And how much at this point, though, is, again, just is too hard to call because we cannot speak to the strength of the consumer. We understand what regulations are, but in the end, it's the consumer coming forward that will make the difference.

至於改善幅度到目前為止仍然很難判斷，因為我們無法評估消費者的強度。我們理解法規要求是什麼，但最終，真正能帶來差異的是消費者是否願意出手購買。

And our next question comes from the line of Kevin McCarthy with Vertical Research Partners.

我們的下一個問題來自 Vertical Research Partners 的 Kevin McCarthy。

The EBITDA derived from your all other segment tripled versus the same period last year. Can you speak to what drove that increase and how sustainable or not you think it may be as 2020 progresses?

你們「其他所有」（all other）部門所貢獻的 EBITDA 相較去年同期成長了三倍。你能談談是什麼驅動了這個增幅？以及隨著 2020 年推進，你認為這樣的表現可持續性如何、或可能不可持續的原因是什麼？

Kevin, this is Scott. So yes, I think what we've seen in our business, clearly a contract driven business, and it all comes down to the timing of the shipments. And so throughout 2019, we saw sequential growth in that business quarter-to-quarter. And our expectation coming into the year that we'd see sequential declines in that business, starting with a higher first quarter declining into the back half.

Kevin，我是Scott。所以是的，我認為我們在業務上看到的情況很明顯——這是一個以合約驅動的業務，而一切都取決於出貨時點。因此在2019年全年，我們看到該業務按季度呈現連續成長。而我們在年初的預期是，該業務會出現連續下滑，也就是第一季較高，之後一路下滑到下半年。

And that's basically the same expectation now. They did a little bit better on some earlier as expected in Q1. Right now, Q2 and Q3 are holding up, and Q4 will be a little bit softer. But it really just comes down to the timing of those shipments on the contracts.

而這基本上也是我們現在的預期。他們在第一季有一些項目表現略優於預期、出貨也稍早一些。就目前而言，第二季和第三季仍維持得住，第四季會稍微疲弱一些。但這真的就是回到那些合約出貨時點的問題。

Very good. And then a follow-up. I wanted to ask about logistics. I think you cited it as an issue in the bromine business. And also cited some challenges related to logistics as it relates to hydroprocessing catalysts. Can you expand on what those challenges are? And are you seeing any alleviation here today as it relates to the second quarter forecast?

很好。接著追問一下。我想問物流方面。我記得你提到溴素業務有物流問題，也提到加氫處理催化劑在物流上有一些挑戰。你能否進一步說明這些挑戰是什麼？以及就第二季的預測而言，你今天是否看到任何緩解？

Yes. So the challenges really come down to the disruption of demand throughout the logistics change. So when China was down in the first quarter, all of a sudden, a big chunk of the, like containers, shipping fleet, trucking fleet were basically in the wrong spot to be able to support things in the rest of the world. And as we move through the crisis, you start to see border closures, restrictions in terms of when ports are going to be operating, all those types of things start to impact us as well.

是的。所以這些挑戰主要來自於物流變動期間需求被打亂所造成的影響。當中國在第一季停擺時，突然之間，像是貨櫃、航運船隊、卡車車隊等很大一部分運力，基本上都在「錯的地方」，無法支援世界其他地區的需求。隨著我們走過這場危機，你開始看到邊境關閉、港口營運時間的限制等各種措施，這些都開始影響到我們。

Things are, I'd say, marginally better now. Things -- we're finding ways to manage through that. So for example, we have one product in our FCS business that we have to air ship and we have to air ship it -- we normally air ship it into Denmark. That flight has been canceled. So that cargo flight has been canceled. We're now going into Belgium and trucking that over to Denmark from there.

我會說現在情況稍微好一些。我們——正在想辦法管理並度過這些問題。舉例來說，我們在FCS業務有一項產品必須用空運，而且我們通常是空運到丹麥。那個航班已被取消，也就是那班貨運航班被取消了。我們現在改為先運到比利時，再從那裡用卡車運到丹麥。

So we're finally managing our way through it, but the challenges are still there. So I mean I think the waves of demand change is going to continue to be challenging to the global fleet out there. And they're going to have to continue to adjust. And our logistics team are doing a great job working with our business guys to make sure our customers stay supplied. So I'm really happy for the work that they're putting in.

所以我們終於在設法把它處理過去，但挑戰仍然存在。我是說，我認為需求變化的波動將持續對全球運力造成挑戰，而他們也必須持續調整。我們的物流團隊與各事業部同仁合作得非常好，確保客戶持續獲得供應。我對他們投入的工作感到非常滿意。

Appreciate the color, and Luke, all the best to you.

感謝你提供的細節，Luke，也祝你一切順利。

Thanks, Kevin.

謝謝，Kevin。

And our next question comes from the line of PJ Juvekar with Citi.

下一個問題來自Citi的PJ Juvekar。

This is Kendall Marthaler on for PJ. Just with the delayed impact of COVID from 1H into 2H. Are there any thoughts on starting to reduce operating rates in the lithium segment now to try and work through that supply outside of, obviously, the Wodgina shutdown? And just, can you give us an update on the inventory situation? I believe it was kind of thought that the lithium inventory should be worked through by year-end '20, early 2021. How do you see that progressing now?

我是代PJ提問的Kendall Marthaler。關於COVID的延遲影響從上半年延伸到下半年，你們是否有考慮現在就開始降低鋰業務的開工率，以消化那部分供給——當然不包含Wodgina停產的影響？另外，能否更新一下庫存狀況？我記得之前的看法是鋰的庫存應該會在2020年底、或2021年初前消化完。你們現在怎麼看這個進展？

Eric, do you want to talk a little bit about our shutdown plans in your business and then our current view on inventory and the supply chain?

Eric，你要不要先談一下你們業務的停產計畫，以及我們目前對庫存與供應鏈的看法？

Yes. So we entered the year, as you know, with our capacity fully committed and under contract, 90% plus of our battery-grade materials are under contract. And as we go through this year, we obviously have the uncertainty associated with what might happen in the second half. But our intent is to keep our plants running, to keep our customers supplied. We are seeing some indications that they -- from a few customers that they're going to want to reduce their forecast. Those will be commercial discussions we have with them.

好的。我們在年初進入今年時，如你所知，我們的產能已完全承諾並簽約，其中90%以上的電池級材料都在合約之下。隨著今年推進，我們當然面臨下半年可能發生情況的不確定性。但我們的意圖是讓工廠持續運轉，確保客戶供應。我們也看到一些跡象——來自少數客戶——他們可能想下修其預測。這些會是我們與他們進行的商務討論。

There are other opportunities we have to place that volume if we have to, but our intent is to -- and our hope is our customers want our contracts. So at the moment, we don't -- we're operating on a place-the-volume-per-plan mode. There are -- or is a playbook we have that in the event there is a worst-case sort of recession coming, there certainly is a playbook we have around what we need to do, around how we'd run our plants. But we do not have any -- well, beyond what we've already announced, have further intent to close any plants at this point in time until we see how the second half demand plays out. I think that was your first question.

如果需要，我們也有其他機會去承接或配置那部分量，但我們的意圖是——也希望客戶仍然需要我們的合約。因此目前我們不——我們是以「按計畫配置出貨量」的模式在運作。我們確實有——也就是有一套應對手冊（playbook），萬一出現最壞情境、類似衰退的狀況，我們當然有一套關於該怎麼做、以及工廠該如何運轉的方案。但除了我們已經宣布的事項之外，目前沒有進一步關廠的意圖，至少在我們看到下半年需求如何發展之前不會。我想這回答了你的第一個問題。

Second question was inventory, correct, Kendall? So inventory has been drawn down to some extent with customers we serve. We know that because they've reduced their volumes in the first half as expected. The challenge we have is not knowing what's happening else -- of course, China had a very weak first quarter itself because of the pandemic. Now automotive plants in Europe and the U.S. have been -- are closing, which, as I said earlier, could have a third quarter impact. And there's been numerous supply disruptions amongst our competitors, some of which is related to COVID-19 and some of which, frankly, has been related to their own liquidity challenges.

第二個問題是庫存，對嗎，Kendall？所以我們服務的客戶端庫存已在某種程度上被消化，我們知道這點，因為他們在上半年如預期降低了採購量。我們面臨的挑戰是不知道其他地方發生了什麼——當然，中國本身在第一季因疫情而非常疲弱。現在歐洲與美國的汽車工廠已經——正在關閉，這如我先前所說，可能會對第三季造成影響。而在我們的競爭對手之中也出現了多起供應中斷，其中一部分與COVID-19有關，另一部分坦白說與他們自身的流動性挑戰有關。

So when you put all that together, it's very hard for me to comment on what inventory looks like and how much it has been drawn down across the channel -- across the whole industry. So I'll just have to sort of let you know as we go through. Maybe next quarter or 2, we'll get better clarity on that. But right now, it's quite muddy.

所以把這些因素綜合起來，我很難評論整個通路——整個產業——的庫存看起來如何，以及到底消化了多少。因此我只能在後續進展中再向你更新。也許再過一到兩個季度，我們會更清楚。但目前確實相當混沌。

And our next question comes from the line of Matthew Skowronski with UBS.

下一個問題來自UBS的Matthew Skowronski。

Following up with Jim's question, you cut CapEx for this year and obviously, these are very challenging times to predict. But as of right now, what's your base case for CapEx for 2021 and 2022, given you're slowing down projects? And then kind of alongside that, what is the minimum amount of CapEx you would be willing to go down to if these trends continue?

延續Jim的問題，你們下調了今年的資本支出（CapEx），而且顯然在這種非常具挑戰性的時期很難預測。但以目前來看，你們對2021年與2022年的CapEx基準情境（base case）是什麼，考量你們正在放慢專案進度？另外，若這些趨勢持續，你們願意把CapEx降到的最低水準大概是多少？

Yes. This is Scott -- oh, go ahead.

是的。我是Scott——噢，你先說。

Let me start, Scott, and then you can look further out. So I mean we look at it in 2 different buckets. So we've got -- well, sustaining capital, so capital in our plants, so both from a safety standpoint, from a maintenance perspective and then growth capital and the big projects. So we've cut back on the big projects to where we can without making a bigger move on those particular projects. I'm kind of more or less talking about La Negra and Kemerton at this point.

Scott，我先開始，然後你可以再談更長期。我們大致把它分成兩個不同的籃子來看。也就是——維持性資本支出（sustaining capital），即投入在工廠的資本，包含安全面與維修維護；以及成長性資本支出與大型專案。我們已在不對特定專案做更大幅調整的前提下，盡可能縮減大型專案的支出。我此刻主要指的是La Negra和Kemerton。

So there's another leg that we can go down. But from an execution standpoint, it makes that more difficult. And we don't really want to cross that. But if things get difficult, we have that lever. Operationally, we've -- for this year, we've kind of narrowed it to the point where we can. There will be other -- as we shut down, we'll be able to cut capital if we have to shut down lines, but we've kind of narrowed down to what we believe we have to do from a health and safety and from maintaining our assets perspective plus a little bit of buffer. So we're not getting -- we're not to the bone, but we're close on that for this year. And then as we look out, we would -- depending on what happens, we would go back to what our previous level of spend would be and increase a little bit in the sustaining part, some growth -- smaller growth projects with nice returns in the plants and then go back to the big projects, what's necessary to execute those.

所以我們還有另一段可以再往下調。但從執行角度來看，那會更困難，而我們其實不太想跨過那條線。不過如果情況變得更艱難，我們確實有那個槓桿可以拉。在營運面，我們——今年已把它收斂到我們能做到的程度。若我們必須停產、關閉產線，我們也能進一步削減資本支出，但我們已把它縮到我們認為在健康與安全、以及維持資產的角度所必須做的程度，再加上一點緩衝。所以我們還沒到「見骨」的程度，但今年已經很接近了。至於往後看——視情況而定——我們會回到先前的支出水準，並在維持性支出部分略為增加，做一些在工廠內報酬良好的小型成長專案，然後回到大型專案，投入執行那些專案所必需的支出。

That's helpful. And then with regards to FCC sales, can you just remind us how those are split geographically? And if you're seeing any regions start to pick up besides, presumably, Asia?

這很有幫助。接著關於FCC的銷售，你能否提醒我們地理區域的分布大概如何？以及除了（推測）亞洲之外，你是否看到任何地區開始回升？

And then thank you for everything, Luke, over the last couple of years. Best wishes for the future.

另外，Luke，謝謝你過去幾年的一切付出。祝你未來一切順利。

Thanks a lot, Matt.

非常感謝，Matt。

Matt, this is Raphael. Let me give you a little perspective on FCC. So geographically, the strengths for our business are in North America, Europe. Europe is a smaller market for FCC, but we're relatively strong in Europe. And our largest market is in Asia and India. So that's where we have our pockets of strength. And from a product standpoint, we're very strong in bottoms cracking and in propylene yield. So as you look at the impact of the pandemic and where we see recovery, for the first time last week, global -- the inventory of gasoline in the United States went down from a record high of about 263 million barrels of gasoline inventory 2 weeks ago. So I think we started to see an inflection in North America. As you see states open up, it's going to start to improve from a bottoming out in North America.

Matt，我是Raphael。讓我就FCC提供一些觀點。就地理分布而言，我們業務的優勢市場在北美、歐洲。歐洲對FCC來說是較小的市場，但我們在歐洲相對強勢。而我們最大的市場在亞洲與印度。因此，這些是我們的優勢所在。從產品面來看，我們在重油裂化（bottoms cracking）以及丙烯收率方面非常強。再看疫情的影響以及我們看到的復甦情況，上週是第一次，全球——美國的汽油庫存從兩週前約2.63億桶的歷史高位開始下降。所以我認為我們在北美開始看到拐點。隨著各州逐步開放，北美將從觸底狀態開始改善。

Asia has been recovering. So China has been recovering. There's still mandatory shutdowns and a lot of mandatory stay-at-home orders and reduced travel in a lot of Southeast Asia. So that has an impact on our business as well as in Europe.

亞洲一直在復甦。所以中國正在復甦。東南亞許多地區仍有強制停工、許多強制居家令以及旅行減少。因此，這也會影響我們在當地以及在歐洲的業務。

I would say that from a global perspective, I think we're near the bottom or at the bottom of the demand picture, and we should start to see a recovery from here on out, but there's a lot of uncertainty as to whether there's a second wave of outbreak of COVID, how fast it comes back.

我會說，從全球角度來看，我認為我們接近需求面的底部或已在底部，接下來應該會開始看到復甦，但仍有很多不確定性，例如是否會出現第二波COVID疫情、以及復甦速度有多快。

All that being said, I think we're positioned pretty well as an FCC business in the right markets with the right technologies for long-term success.

綜合而言，我認為作為一家FCC業務，我們在正確的市場、擁有正確的技術，具備長期成功的良好定位。

And our next question comes from the line of Mike Sison with Wells Fargo.

下一個問題來自Wells Fargo的Mike Sison。

In '19, there was an inventory build for lithium. And I recall it's somewhere in that 50,000 to 75,000 and then it shrank towards the end of the year. I know you guys have -- tended to have a good feel for those levels. Do you think that inventory build builds back? And then at the end of the day, is the volume of lithium demand going to be down this year? And by how much?

2019年鋰有一波庫存增加。我記得大概在5萬到7.5萬之間，然後在年底時縮小。我知道你們——通常對這些水位很有掌握。你認為那波庫存增加會再度回升嗎？另外，總體來看，今年鋰需求量會下滑嗎？大概會下滑多少？

Mike, it's Eric here. So with regards to inventory, I don't know if I have much to add versus the earlier question. We did have, if you include all forms of lithium, somewhere between and refinery lithium maybe 3 to 4 months, if you add in spodumene, maybe 6 months of inventory as we are exiting last year.

Mike，我是Eric。關於庫存，我不確定相較於先前那個問題我還能補充多少。若把各種形式的鋰都算進去，我們在去年結束時，介於——精煉鋰大概有3到4個月的庫存；若再加上鋰輝石（spodumene），可能約有6個月的庫存。

As you know and as Scott described in our results, our customers, and we expected this, drew down from our purchases that they'd otherwise have in the beginning of the year, their inventories. And it was, particularly in Europe, a reasonably strong first quarter despite the onset of the pandemic outside of China.

如你所知、也如Scott在我們的業績中所描述，我們的客戶——而且我們也預期會如此——在年初減少了原本會向我們採購的量，轉而消化他們自身的庫存。尤其在歐洲，儘管疫情在中國以外開始爆發，第一季仍算相當強勁。

So there has been, in a small -- in a lot of parts of the world, some inventory reduction, but what I can't account for is what's happened elsewhere. China demand was not strong at all in the first quarter. It is the largest lithium market. However, producers to that market, many of our competitors, weren't able to produce either. So the relative balance of the 2 and how that change in a 3-month period, too hard to say. Really too hard to say right now.

因此，在小——在世界許多地區確實出現了一些庫存下降，但我無法掌握其他地方發生了什麼。中國第一季需求並不強勁，而中國是最大的鋰市場。然而，供應該市場的生產商——我們的許多競爭對手——也無法生產。因此，兩者的相對平衡，以及在三個月期間如何變化，很難說。現在真的很難說。

So that's what I'd have to leave it out. Was there a second part to your question that I missed?

所以我只能先說到這裡。你還有第二個問題是我漏掉的嗎？

Yes. And just a quick follow-up. If you think about the long term, kind of the 2025 forecast for EV adoption, how has that changed do you think with oil prices being low and kind of the impact on automakers and their ability to ramp up those cars?

有的。再快速追問一下。從長期來看，像是2025年電動車（EV）普及的預測，你認為在油價偏低、以及對車廠與其提升產能能力的影響之下，這個預測有什麼改變嗎？

And then Luke, I just want to wish you the best. I hope you have a lot of fresh fish to catch over the next couple of days.

另外，Luke，我只想祝你一切順利。希望你接下來幾天能釣到很多新鮮的魚。

Well, don't forget you owe me that dinner and the wine over that bet you lost about the football games. But thanks, Mike.

別忘了你還欠我那頓晚餐和那瓶酒——因為你在那場關於足球比賽的賭注輸了。不過謝謝你，Mike。

I'll get down there.

我會下去的。

So on demand, I think it's -- like we said, we know that we're going to see a weaker second half. We don't know how weak, Mike. So I really can't tell you how -- what this coming year's demand is going to look like versus last year's at this point in time. What I can tell you, on EV specifically, is that what we look at for EV adoption is not necessarily oil price. That's an older convention or a rule of thumb that does not seem relevant in a world where whole regions and countries are putting in regulations in place that are driving things towards electric vehicles.

就需求而言，我認為——如我們所說，我們知道下半年會更疲弱。我們不知道會有多弱，Mike。所以此時我真的無法告訴你，今年的需求相較去年會是什麼樣子。我能告訴你的是，就EV而言，我們觀察EV普及並不一定看油價。那是一種較舊的慣例或經驗法則，在如今整個區域與國家都在制定法規、推動電動車的世界裡，似乎已不那麼相關。

So that's what we look for, and we see that sustained. We see that increasing in the case of China. There's a possibility those regulations are sustained or potentially increased under the Green Deal initiatives in Europe. We'll have to watch and see. But all that being said, as we said earlier, the reasons we think, and we rely on third-party research for this, that the EV curve has been shifted out perhaps by as much as a year or more, is that the consumer spending is going to be nicked significantly during this recession. We just don't know what that impact looks like.

所以我們看的是這些因素，而我們看到這種趨勢仍在延續。在中國，我們看到這種趨勢在加速。在歐洲，在「綠色新政」（Green Deal）倡議下，這些法規有可能維持，甚至可能加碼；我們還需要持續觀察。不過，綜合而言，如我們先前所說，我們之所以認為——並且依賴第三方研究——EV曲線可能被往後推遲，幅度或許多達一年或更久，是因為在這次衰退期間，消費支出將明顯受到衝擊。我們只是不知道影響會長什麼樣子。

So we, like you, are going to rely on experts who provide those forecasts. And as we get more information, we'll provide more.

因此，我們和你一樣，將依賴提供這些預測的專家。隨著我們獲得更多資訊，我們也會提供更多更新。

And our next question comes from the line of Colin Rusch with Oppenheimer.

下一個問題來自Oppenheimer的Colin Rusch。

Can you talk a little bit about the technology road maps for your cathode customers and whether those are accelerating or changing at all? We know you've got some targets out there. But are they taking this downtime to look at accelerating some of those road maps?

你能談談你們正極材料客戶的技術路線圖，以及這些路線圖是否有加速或出現任何變化嗎？我們知道你們有一些目標。但他們是否利用這段停擺期來加速其中一些路線圖？

I don't -- Colin, I don't think there's any material change to those road maps. So just at a high level what those are is as chemistries move to higher levels of nickel, NMC 622 or higher in the NMC chemistry area or NCA, you'll -- and those are the preferred chemistries for energy density, therefore, lower cost ultimately and higher range for EVs.

Colin，我不認為那些路線圖有任何重大變化。高層次來說，隨著化學體系往更高鎳含量發展，例如在NMC體系中走向NMC 622或更高，或是NCA——而這些是能量密度更佳的首選化學體系，因此最終成本更低、EV續航更高。

As all of these electric vehicle manufacturers, particularly in Europe, given the regulations I just referenced earlier that are driving this adoption, roll out their plans, they're moving to those chemistries, those are oriented towards hydroxide. There's some salt and pepper ingredients that are used on the anode side of things for prelithiation and other things that are starting to develop as well. So some interesting technology developments.

當所有這些電動車製造商——尤其是在歐洲，鑑於我剛才提到、正在推動普及的法規——推出他們的計畫時，他們正轉向這些化學體系，而這些更偏向使用氫氧化鋰。另外，在負極端也有一些「鹽與胡椒」式的添加成分，用於預鋰化（prelithiation）等用途，也正在發展中。所以有一些有趣的技術進展。

That's where we see the future. We're going to continue to see a core of chemistries used to support consumer electronics products, power tools and lower range, lower value EVs, which will be predominantly based in China. And those will be carbonate based chemistries, they can be lithium iron phosphate or NMC variety, cells that have lower levels of nickel and are, therefore, more economically produced with carbonate.

這就是我們看到的未來。我們將持續看到一部分核心化學體系，用於支撐消費性電子產品、電動工具，以及續航較低、價值較低的EV，這些將主要集中在中國。而這些將是以碳酸鋰為基礎的化學體系，可能是磷酸鐵鋰或NMC類型——鎳含量較低的電芯，因此用碳酸鋰生產在經濟性上更有利。

And that's pretty much the story as it's been -- it hasn't changed a lot. Just given what's going on with the pandemic, most automotive and battery manufacturers are just dealing with the pandemic at the time being rather than accelerating their technology programs.

大致上故事就是如此——並沒有太大改變。只是考量疫情的情況，多數汽車與電池製造商目前主要是在應對疫情，而不是加速他們的技術計畫。

All right. That's helpful. And then in terms of some of the health measures that you guys are implementing in your facilities, are there permanent changes to the cost structure on production and processing that you can speak to at this point?

好的，這很有幫助。接著就你們在設施中實施的一些健康措施而言，是否有任何會對生產與加工的成本結構造成永久性改變，你們目前能談談嗎？

I wouldn't -- I mean what we've done from a health standpoint, I don't think will change our long-term cost structure. So that will move back. There are things that we're learning, and that will inform some decisions as we go forward. But so far, we've done that in response to the pandemic and continue to operate in a difficult environment.

我不會——我的意思是，我們從健康角度所做的事情，我不認為會改變我們的長期成本結構。所以那會回到原狀。我們確實在學到一些東西，這些會在未來推進時影響一些決策。但到目前為止，我們是為了因應疫情而採取這些措施，並持續在艱困環境下營運。

We've done fairly well with that, but we'll go back to the way we were operating as soon as that's possible. But some of the things that we've learned, we will probably apply. That may affect that, but we're not in that spot today.

我們在這方面做得相當不錯，但一旦可行，我們會盡快回到原本的營運方式。不過，我們學到的一些做法，可能會加以應用。那可能會對成本結構產生影響，但我們今天還沒有到那個階段。

Thank you. And this does conclude today's Q&A session. I would now like to turn the conference back over to Ms. Meredith Bandy for any further remarks.

謝謝。今天的問答環節到此結束。接下來我想把電話會議交回給Meredith Bandy女士，請她做進一步的說明。

All right. Thanks, everyone, for your questions and your participation in today's conference call. As always, we do appreciate your interest in Albemarle, and this concludes our first quarter conference call. Thank you.

好的。謝謝各位今天的提問以及參與本次電話會議。一如既往，我們非常感謝各位對Albemarle的關注，本次第一季電話會議到此結束。謝謝。

Ladies and gentlemen, thank you for participating in today's conference. This does conclude the program, and you may all disconnect. Everyone, have a great day.

各位女士、先生，感謝您參與今天的電話會議。本次議程到此結束，您可以掛線。祝各位有美好的一天。