Alamo Group Inc (ALG) 2024 Q2 法說會逐字稿

Good day and welcome to the Alamo Group, Inc. second quarter 2024 conference call.

美好的一天，歡迎參加 Alamo Group, Inc. 2024 年第二季電話會議。

(Operator Instructions).

（操作員說明）。

Please note that today's event is being recorded.

請注意，今天的活動正在錄製中。

I would now like to turn the conference over to Edward Rizzuti, Executive Vice President, Chief Legal Officer and Secretary.

我現在將會議交給執行副總裁、首席法務官兼秘書愛德華·裡祖蒂 (Edward Rizzuti)。

Please go ahead, sir.

請繼續，先生。

By now, you should have all received a copy of the press release.

到現在為止，你們應該都收到了新聞稿的副本。

However, if anyone is missing a copy and would like to receive one, please contact us at (212) 827-3746, and we will send you a release and make sure you are on the company's distribution list.

但是，如果有人遺失了一份副本並希望收到一份，請致電 (212) 827-3746 與我們聯繫，我們將向您發送新聞稿並確保您在公司的分發清單中。

There will be a replay of the call, which will begin 1 hour after the call and run for 1 week.

通話將進行重播，重播將在通話後 1 小時開始，持續 1 週。

The replay can be accessed by dialing 1 (877) 344-7529 with the passcode 251-4245.

可以透過撥打 1 (877) 344-7529 使用密碼 251-4245 來觀看重播。

Additionally, the call is being webcast on the company's website at www.alamo-group.com, and a replay will be available for 60 days.

此外，該電話會議正在該公司網站 www.alamo-group.com 上進行網路直播，並將提供 60 天的重播。

On the line with me today are Jeff Leonard, President and Chief Executive Officer; and Agnes Kamps, Executive Vice President and Chief Financial Officer.

今天和我一起在線的是總裁兼首席執行官傑夫·倫納德 (Jeff Leonard)；和艾格妮絲坎普斯，執行副總裁兼財務長。

Management will make some opening remarks, and then we will open up the line for your questions.

管理層將發表一些開場白，然後我們將開放您的提問熱線。

During the call today, management may reference certain non-GAAP numbers in their remarks.

在今天的電話會議中，管理階層可能會在演講中引用某些非公認會計準則資料。

Reconciliations of these non-GAAP results to applicable GAAP numbers are included in the attachments to our earnings release.

這些非 GAAP 結果與適用的 GAAP 資料的對帳包含在我們收益發布的附件中。

Before turning the call over to Jeff, I would like to make a few comments about forward-looking statements.

在將電話轉給傑夫之前，我想對前瞻性陳述發表一些評論。

We will be making forward-looking statements today that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

我們今天將根據 1995 年《私人證券訴訟改革法案》的安全港條款做出前瞻性聲明。

Forward-looking statements involve known and unknown risks and uncertainties, which may cause the company's actual results in future periods to differ materially from forecasted results.

前瞻性陳述涉及已知和未知的風險和不確定性，可能導致公司未來期間的實際績效與預測結果有重大差異。

Among those factors which could cause actual results to differ materially are the following: adverse economic conditions, which could lead to a reduction overall market demand, supply chain disruptions, labor constraints, competition, weather, seasonality, currency-related issues, geopolitical events and other risk factors listed from time to time in the company's SEC reports.

可能導致實際結果出現重大差異的因素如下：不利的經濟條件可能導致整體市場需求減少、供應鏈中斷、勞動力限制、競爭、天氣、季節性、貨幣相關問題、地緣政治事件和公司SEC 報告中不時列出的其他風險因素。

The company does not undertake any obligation to update the information contained herein, which speaks only as of this date.

該公司不承擔更新本文所含資訊的任何義務，這些資訊僅代表截至目前的情況。

I would now like to introduce Jeff Leonard.

現在我想介紹傑夫·倫納德。

Jeff, please go ahead.

傑夫，請繼續。

We want to thank everyone who's joined us on the conference call today and express our appreciation for your continued interest in Alamo Group.

我們要感謝今天參加我們電話會議的所有人，並對您對阿拉莫集團的持續關注表示感謝。

The second quarter shaped up largely in line with our expectations, marked by a strong performance from our industrial equipment division and sustained market headwinds that continue to put pressure on the results from the vegetation management division.

第二季的業績基本上符合我們的預期，工業設備部門表現強勁，而持續的市場逆風繼續給植被管理部門的業績帶來壓力。

I would now like to turn the call over to Agnes who will take us through a review of our financial results for the first quarter.

我現在想將電話轉給艾格妮絲，她將帶我們回顧第一季的財務表現。

I will then provide additional comments on the results and say a few words about the outlook for the third quarter and the balance of 2024.

然後我將對結果提供更多評論，並就第三季和 2024 年剩餘時間的前景發表幾句話。

Following our formal remarks, we look forward to taking your questions.

在我們正式發言之後，我們期待回答您的問題。

Agnes?

艾格妮絲？

Thank you, Jeff.

謝謝你，傑夫。

Good morning, everyone.

大家早安。

Alamo Group's second quarter concluded largely as anticipated.

阿拉莫集團第二季的業績基本上符合預期。

We faced some challenges in the Vegetation Management market, and we completed the first set of actions to rightsize the operation and position this division for improved performance.

我們在植被管理市場面臨一些挑戰，我們完成了第一組行動，以調整營運規模並定位該部門以提高績效。

On the bright side, industrial equipment exhibits promising developments that underscore our strategic growth initiatives.

從好的一面來看，工業設備展現出有希望的發展，凸顯了我們的策略成長舉措。

Reviewing the second quarter of 2024, we are mindful that we are comparing that against the strongest quarter of 2023.

回顧 2024 年第二季度，我們注意到我們正在將其與 2023 年最強勁的季度進行比較。

Here are some figures that highlight our performance.

以下是一些突出我們表現的數據。

Net sales were $416.3 million, a decrease of 5.5% versus second quarter 2023.

淨銷售額為 4.163 億美元，較 2023 年第二季下降 5.5%。

This decline is due to continued headwinds in the forestry, tree care and agricultural markets, which affected the results of the vegetation division, partially offset by the growth in industrial division.

這一下降是由於林業、樹木護理和農業市場的持續不利因素影響了植被分工的結果，但部分被工業分工的成長所抵消。

Gross profit for the second quarter of 2024 was $108.2 million, 26% of net sales compared to $118.1 million, 26.8% of net sales during the same period in 2023.

2024 年第二季的毛利為 1.082 億美元，佔淨銷售額的 26%，而 2023 年同期毛利為 1.181 億美元，佔淨銷售額的 26.8%。

The decrease of $9.9 million was due to lower volume in the vegetation management division and the five-week strike in the industrial equipment division.

減少 990 萬美元的原因是植被管理部門的產量下降以及工業設備部門為期五週的罷工。

SG&A expenses were $960,000 higher than the second quarter of 2023 due to the Royal Truck acquisition.

由於收購 Royal Truck，SG&A 費用比 2023 年第二季高出 96 萬美元。

Any inflationary impacts were offset by cost reductions.

任何通貨膨脹的影響都會被成本降低所抵消。

As percentage of net sales, SG&A was 14.4%.

SG&A 佔淨銷售額的百分比為 14.4%。

As a result of operating income for the second quarter came in at $43.3 million or 10.4% of net sales compared to the second quarter last year of $54.4 million or 12.3% of net sales.

第二季營業收入為 4,330 萬美元，佔淨銷售額的 10.4%，而去年第二季營業收入為 5,440 萬美元，佔淨銷售額的 12.3%。

Interest expenses were $6.1 million compared to $6.8 million in the second quarter of last year, primarily due to lower debt levels.

利息支出為 610 萬美元，而去年第二季為 680 萬美元，主要是由於債務水平較低。

The provision for income tax was $9.3 million, which is lower than the second quarter of 2023 of $10.5 million.

所得稅撥備為 930 萬美元，低於 2023 年第二季的 1,050 萬美元。

The effective tax rate was 24.8%, an increase compared to 22.3% last year due to a different mix of US and foreign income and a nonrecurring tax refund in 2023.

由於美國和外國收入的不同組合以及 2023 年的非經常性退稅，有效稅率為 24.8%，較去年的 22.3% 有所增加。

These results bring us to consolidated net income for the second quarter of $28.3 million or $2.35 per diluted share.

這些結果使我們第二季的合併淨利潤為 2,830 萬美元，即稀釋後每股收益 2.35 美元。

In the second quarter of 2023, consolidated net income was $36.4 million or $3.03 per diluted share.

2023 年第二季度，合併淨利潤為 3,640 萬美元，即稀釋後每股收益 3.03 美元。

The year-on-year deviation was due to the strike and lower revenue.

年比偏差是由於罷工和收入下降造成的。

A few words regarding our divisions.

關於我們的部門的幾句話。

The vegetation management division net sales were $211.5 million, representing 9.1% decline versus second quarter 2023.

植被管理部門淨銷售額為 2.115 億美元，較 2023 年第二季下降 9.1%。

While forestry, tree and agricultural markets are down, the governmental side of the business continues to show nice growth.

儘管林業、樹木和農產品市場下滑，但政府方面的業務仍持續表現出良好的成長。

Operating income for the vegetation management division was $60 million or 7.6% of net sales impacted by the lower revenue and an (technical difficulty) costs.

受收入下降和（技術難度）成本影響，植被管理部門的營業收入為 6,000 萬美元，佔淨銷售額的 7.6%。

We will discuss our improvement actions later in the call.

我們將在稍後的電話會議中討論我們的改進行動。

The industrial equipment division delivered growth of 14.2% compared to the second quarter of 2023 with net sales of $204.8 million.

工業設備部門的淨銷售額為 2.048 億美元，較 2023 年第二季成長 14.2%。

We experienced continued strong demand for our industrial equipment across all groups.

我們經歷了所有集團對我們的工業設備的持續強勁需求。

Operating income for this division was $27.3 million or 13.3% of revenue, which is an improvement of $8 million and 284 basis points compared to second quarter 2023.

該部門的營業收入為 2,730 萬美元，佔營收的 13.3%，與 2023 年第二季相比增加了 800 萬美元，增加了 284 個基點。

Allow me to also summarize the first half of the year.

我也總結一下上半年的狀況。

Year-to-date net sales were $841.9 million, a small 1.2% decrease versus prior year.

年初至今淨銷售額為 8.419 億美元，比前一年小幅下降 1.2%。

While the vegetation management division declined by 16%, the industrial equipment division grew by 21%.

雖然植被管理部門下降了 16%，但工業設備部門卻成長了 21%。

Gross profit was $219.8 million or 26% of net sales, representing $10.8 million or 94 basis points below prior year.

毛利為 2.198 億美元，佔淨銷售額的 26%，比去年同期低 1,080 萬美元，即 94 個基點。

SG&A expenses were $121.4 million, $1.9 million higher than the previous year due to the Royal Truck acquisition.

由於收購了 Royal Truck，SG&A 費用為 1.214 億美元，比前一年增加 190 萬美元。

Operating income was $90.3 million or 10.7% of revenue, a decrease of $13.1 million and 141 basis points.

營業收入為 9,030 萬美元，佔收入的 10.7%，減少 1,310 萬美元，減少 141 個基點。

Net income was $60.4 million, $9 million below prior year.

淨利潤為 6,040 萬美元，比上年同期減少 900 萬美元。

Year-to-date, net income includes restructuring costs of $1.7 million.

年初至今，淨利包括 170 萬美元的重組成本。

The labor strike in industrial division affected us by approximately $9 million in sales and a bit more than $3 million in profit.

工業部門的罷工影響了我們約 900 萬美元的銷售額和略高於 300 萬美元的利潤。

Let's review other financial items for the second quarter.

讓我們回顧一下第二季度的其他財務項目。

Our balance sheet remains healthy.

我們的資產負債表保持健康。

Working capital of $700 million increase compared to December 2023, due to higher cash and cash equivalents and the 21% growth in industrial equipment division.

由於現金和現金等價物增加以及工業設備部門成長 21%，營運資本較 2023 年 12 月增加 7 億美元。

Working capital in vegetation management division is decreasing in line with revenue and specifically inventory reduction actions.

植被管理部門的營運資金隨著收入、特別是庫存減少行動而減少。

Operating cash flow for the quarter was $34.3 million.

該季度的營運現金流為 3,430 萬美元。

In the second quarter, we reduced total debt by another $28 million.

第二季度，我們的總債務又減少了 2,800 萬美元。

Total debt net of cash was $175 million versus $236 million in June 2023, which represent [$60 million] or 26% reduction.

扣除現金後的總債務為 1.75 億美元，而 2023 年 6 月為 2.36 億美元，減少了 [6,000 萬美元]或 26%。

We continue to focus on working capital and cash flow and expect our balance sheet to remain robust.

我們繼續關注營運資本和現金流，並預期我們的資產負債表將保持強勁。

Finally, trailing 12-month EBITDA ended at $236.6 million and hold over 14% of net sales.

最後，過去 12 個月的 EBITDA 為 2.366 億美元，佔淨銷售額的 14% 以上。

Looking ahead, as the vegetation markets remain weak, we will continue our improvement program to protect our profitability and cash flow.

展望未來，由於植被市場仍然疲軟，我們將繼續實施改進計劃，以保護我們的獲利能力和現金流。

The actions we have already taken, including reductions in force of 7% globally are expected to result in $10 million in savings in 2024, net of additional restructuring costs.

我們已經採取的行動，包括全球裁員 7%，預計將在 2024 年節省 1,000 萬美元（扣除額外的重組成本）。

Jeff will discuss further details.

傑夫將討論更多細節。

To conclude, we are pleased that the Board has approved a regular dividend of $0.26 per share for the second quarter of 2024.

最後，我們很高興董事會批准了 2024 年第二季每股 0.26 美元的定期股息。

Thank you.

謝謝。

I will now turn it back over to Jeff.

我現在將把它轉回給傑夫。

Thank you, Agnes.

謝謝你，艾格妮絲。

I'd like to add my personal welcome to everyone who's joined us on the call this morning.

我想向今天早上參加我們電話會議的所有人表示我個人的歡迎。

The company's second quarter results, despite a few surprises, were broadly in line with our expectations given that our markets are moving at quite different paces at the moment.

儘管有一些意外，但該公司第二季的業績基本上與我們的預期一致，因為我們的市場目前的發展速度截然不同。

Net sales for the quarter reflected the recent divergence of momentum and activity between our industrial equipment and Vegetation Management segments.

本季的淨銷售額反映了我們的工業設備和植被管理部門之間近期動力和活動的差異。

Consolidated net sales declined by 5.5% versus the same period of last year.

綜合淨銷售額較去年同期下降 5.5%。

Operating income was slightly in excess of $43 million, driven lower by the combined effects of the five week strike at our Gradall facility, general weakness in vegetation management and the associated impact on operational efficiency in several of the company's larger production facilities.

由於 Gradall 工廠為期五週的罷工、植被管理普遍薄弱以及對公司幾個較大生產設施運營效率的相關影響的綜合影響，營業收入略高於 4300 萬美元。

Consolidated second quarter order bookings of $344 million were up 5.5% versus the same period last year.

第二季綜合訂單預訂量為 3.44 億美元，較去年同期成長 5.5%。

Industrial Equipment orders were nicely higher, while orders for vegetation management equipment were essentially flat.

工業設備訂單大幅增加，而植被管理設備訂單基本持平。

Consolidated order backlog declined 14% compared to the second quarter of 2023, but still represents a very reasonable two quarters of sales at the current pace.

與 2023 年第二季相比，綜合積壓訂單下降了 14%，但以目前的速度，這兩個季度的銷售額仍然非常合理。

We were pleased that our balance sheet continued to strengthen during the quarter.

我們很高興我們的資產負債表在本季繼續增強。

Long-term debt net of cash is down more than 25% compared to the second quarter of 2023, and this positions us well to take advantage of the rising tide of acquisition opportunities we are seeing at the moment.

與 2023 年第二季相比，扣除現金的長期債務下降了 25% 以上，這使我們能夠充分利用目前不斷上升的收購機會。

Taking a deeper look at the industrial equipment segment, market activity across the governmental and industrial markets remained buoyant during the quarter.

深入研究工業設備領域，本季政府和工業市場的市場活動仍然活躍。

Net sales were 14% higher than in the second quarter of 2023 and established a new all-time record for this division.

淨銷售額比 2023 年第二季成長 14%，創造了該部門的新歷史記錄。

Profitability was also strong.

獲利能力也很強勁。

Operating income rose nearly 45% compared to the second quarter of 2023, and EBITDA exceeded 16% for the quarter.

與 2023 年第二季相比，營業收入成長近 45%，該季度 EBITDA 超過 16%。

These outstanding results were achieved despite the previously announced five week strike by unionized workers at the division's largest manufacturing plant in April and May.

儘管該部門最大的製造工廠的工會工人先前宣佈在四月和五月舉行為期五週的罷工，但仍取得了這些出色的成果。

This work stop has trimmed the division's second quarter net sales by nearly $9 million with a more than $3 million associated reduction in operating income.

這次停工導致該部門第二季的淨銷售額減少了近 900 萬美元，相關營業收入減少了超過 300 萬美元。

It's worth noting that the new collective bargaining agreement in that facility spans five years and thus provides us with future stability and confidence to continue to invest in production modernization.

值得注意的是，該工廠的新集體談判協議為期五年，從而為我們提供了未來的穩定性和繼續投資生產現代化的信心。

Industrial equipment order bookings were similarly robust at nearly $194 million during the quarter, up more than 10% compared to the same period last year.

本季工業設備訂單預訂同樣強勁，達到近 1.94 億美元，比去年同期成長 10% 以上。

The division ended the quarter with a very healthy order backlog of nearly $551 million, representing almost nine-months of sales at the current pace, and thereby positioning this division to continue to provide solid growth and profitability well into 2025.

截至本季末，該部門的積壓訂單非常健康，接近 5.51 億美元，以目前的速度相當於近 9 個月的銷售額，從而使該部門能夠在 2025 年繼續提供穩健的增長和盈利能力。

Our sweeper and safety group led the way with solid baseline organic growth, further supported by a strong contribution from the Royal Truck business we acquired in the fourth quarter of last year.

我們的清掃車和安全團隊以穩健的基準有機成長引領潮流，並得到我們去年第四季收購的皇家卡車業務的強勁貢獻的進一步支持。

Our snow removal group also produced nice sales growth and improved profitability.

我們的除雪團隊也實現了良好的銷售成長並提高了獲利能力。

This was a pleasant surprise as the second quarter is normally seasonally softer in that business.

這是一個令人驚訝的結果，因為第二季該業務通常會出現季節性疲軟。

Finally, we were especially pleased that our vacuum truck and excavator group, despite the impact of the strike, produced positive sales growth and strong profitability.

最後，我們特別高興的是，儘管受到罷工的影響，我們的真空卡車和挖土機集團仍實現了積極的銷售成長和強勁的獲利能力。

All-in-all, it was a very strong quarter for our industrial equipment division in all respects despite the setback of the lengthy strike.

總而言之，儘管長期罷工遭遇挫折，但對於我們的工業設備部門來說，這個季度在各方面都是非常強勁的。

The company's vegetation management division had a challenging second quarter as its forestry, tree care and agricultural markets remain soft following the unprecedented surge of activity in the aftermath of the pandemic.

該公司的植被管理部門第二季度充滿挑戰，因為在疫情後活動空前激增之後，其林業、樹木護理和農業市場仍然疲軟。

Channel inventories remained elevated, although progress was made to reduce them.

儘管在減少渠道庫存方面取得了進展，但渠道庫存仍然較高。

The division's second quarter net sales declined 19% compared to the second quarter of 2023, which significantly was the all-time historical quarterly sales peak for this division.

與 2023 年第二季相比，該部門第二季淨銷售額下降了 19%，這是該部門歷史上的季度銷售高峰。

The decline was most notable in its forestry and tree care and agricultural equipment groups.

林業和樹木護理以及農業設備部門的下降最為顯著。

Solidly higher sales of mowers and associated equipment to governmental agencies were a bright spot for this division during the quarter.

向政府機構銷售的割草機及相關設備的穩定成長是該部門本季的亮點。

Although pricing exhibited sustained durability, lower sales adversely impacted efficiencies and compressed operating margin.

儘管定價表現出持續的持久性，但銷售下降對效率產生了不利影響並壓縮了營業利潤率。

Second quarter net income declined 55% compared to the same period of 2023 and resulted in EBITDA of just over 11% for the quarter.

第二季淨利較 2023 年同期下降 55%，導致該季 EBITDA 略高於 11%。

New orders worth $218 million were booked during the quarter, the same level as the second quarter last year.

本季新訂單價值 2.18 億美元，與去年第二季持平。

Sales of the division's flagship industrial wood grinders and shippers remain constrained by the combined impact of the persistent softness in housing and commercial construction, high channel inventories and elevated interest rates.

該部門旗​​艦工業木材研磨機和托運商的銷售仍然受到住房和商業建築持續疲軟、渠道庫存高和利率上升的綜合影響。

Higher interest rates and a slower start to the 2024 storm season also caused some of the large national free care accounts to postpone expected fleet renewal and expansion orders.

利率上升和 2024 年風暴季節開始較慢也導致一些大型國家免費護理帳戶推遲了預期的機隊更新和擴建訂單。

Orders for land clearing equipment were also soft during the quarter following the exceptional surge of demand during the pandemic driven by the popular growth of rural lifestyles.

由於農村生活方式流行，疫情期間需求異常激增，本季土地清理設備的訂單也疲軟。

Second quarter demand for the company's mowers and other agricultural equipment was flat in both the Americas and Europe due to declining farm incomes, soft commodity prices and excess channel inventory.

由於農場收入下降、大宗商品價格疲軟和通路庫存過剩，第二季美洲和歐洲對該公司割草機和其他農業設備的需求持平。

There are, however, a few modestly positive signs of the agricultural market is gradually improving.

然而，有一些溫和的正面跡象顯示農產品市場正在逐漸改善。

The Association of Equipment Manufacturers or AEM reported in June the dealer inventories of small, less than 40 horsepower tractors declined by 12%, while inventory of tractors greater than 40 horsepower but less than 100 horsepower declined 5% in the first six-months of this year.

設備製造商協會 (AEM) 6 月報告稱，今年前 6 個月，40 馬力以下小型拖拉機的經銷商庫存下降了 12%，而 40 馬力以上但 100 馬力以下的拖拉機庫存下降了 5%。

Also, the persistent drought in many parts of North America is easing, and this bodes well for the harvest this year.

此外，北美許多地區的持續乾旱正在緩解，這預示著今年的收成良好。

To address the impact of the slowdown in vegetation management during the second quarter, we continued to take decisive actions to streamline our operations and reduce costs.

為了應對第二季植被管理放緩的影響，我們繼續採取果斷行動，精簡營運並降低成本。

Since the beginning of this year, we've reduced our global workforce by nearly 7%.

自今年年初以來，我們已將全球員工人數減少了近 7%。

In addition, we've initiated the consolidation of North American forestry and tree care equipment manufacturing into one facility, and we expect to complete this action by the end of the year.

此外，我們已開始將北美林業和樹木護理設備製造整合到一個工廠，我們預計在今年年底前完成這項行動。

Part of the freed up manufacturing capacity will be redeployed to the production of industrial products to meet the growing demand in that division.

部分釋放的製造能力將重新部署到工業產品的生產，以滿足該部門不斷增長的需求。

In addition, we're pursuing a divestiture of one of our smaller North American agricultural businesses.

此外，我們正在尋求剝離我們規模較小的北美農業企業。

Finally, we're planning additional actions to consolidate agricultural equipment production in North America.

最後，我們正在計劃採取其他行動來鞏固北美的農業設備生產。

We expect these actions to produce an additional significant savings net of the associated restructuring costs in the remaining months of this year and the first quarter of 2025.

我們預計這些行動將在今年剩餘幾個月和 2025 年第一季帶來額外的顯著節省（扣除相關重組成本）。

Regarding the outlook for the third quarter and remainder of 2024, we believe that the market trends that we encountered in the second quarter are likely to persist with our government and industrial markets demonstrating sustained strength and momentum, while markets for our vegetation management equipment division, including forestry, tree care and agriculture, will remain under pressure.

關於第三季和2024 年剩餘時間的前景，我們認為，我們在第二季遇到的市場趨勢可能會持續下去，我們的政府和工業市場將表現出持續的實力和勢頭，而我們的植被管理設備部門的市場，包括林業、樹木護理和農業，仍將面臨壓力。

We do not anticipate the headwinds in vegetation management to meaningfully abate until channel inventories return to more normal levels and interest rate reductions are announced.

我們預計，在渠道庫存恢復到正常水準並宣布降息之前，植被管理的阻力不會顯著減弱。

Until then, we will continue to further adjust our capacities and cost structure while we collaborate closely with our dealers to motivate retail sales and thereby reduce inventory.

在此之前，我們將繼續進一步調整產能和成本結構，同時與經銷商密切合作，刺激零售銷售，從而減少庫存。

On the other hand, we expect the industrial equipment division to continue to produce solid results solid sales growth and further improvement in profitability for the remainder of 2024 at least.

另一方面，我們預計工業設備部門至少在 2024 年剩餘時間內將繼續取得穩健的業績、穩定的銷售成長和獲利能力的進一步改善。

While the company's consolidated sales growth will remain under pressure for the remainder of the year, the efficiency improvement and cost reduction actions we have taken are expected to improve earnings in the third and fourth quarters.

儘管公司的綜合銷售成長在今年剩餘時間內仍將面臨壓力，但我們採取的效率提高和成本削減行動預計將改善第三和第四季的獲利。

Looking further ahead into 2025, we expect to return to stronger organic growth, more akin to what we've historically enjoyed.

展望 2025 年，我們預計將恢復更強勁的有機成長，更類似於我們歷史上所享受的成長。

Supported by the restructuring actions we've taken and will continue to take in the second half of this year, we expect the company's sales and earnings to rebound solidly in 2025.

在我們已經採取並將在今年下半年繼續採取的重組行動的支持下，我們預計公司的銷售額和盈利將在 2025 年強勁反彈。

Finally, given how active our M&A pipeline is at the moment, we are optimistic that we'll be able to leverage our strong balance sheet to accelerate inorganic growth as well.

最後，考慮到我們目前的併購管道非常活躍，我們樂觀地認為我們將能夠利用我們強大的資產負債表來加速無機成長。

I would like to take this opportunity to thank our customers, dealers, suppliers, our dedicated employees and all of our financial stakeholders for their continued support of the company.

我想藉此機會感謝我們的客戶、經銷商、供應商、敬業的員工以及所有財務利害關係人對公司的持續支持。

This concludes our prepared remarks.

我們準備好的演講到此結束。

We're now ready to take your questions.

我們現在準備好回答您的問題。

So operator, please go ahead

那麼接線員，請繼續

(Operator Instructions).

（操作員說明）。

Chris Moore, CJ Securities.

克里斯摩爾，CJ 證券。

Hey, good morning, guys.

嘿，早上好，夥計們。

Thanks for taking a couple of questions.

感謝您提出幾個問題。

Let's start with vegetation.

讓我們從植被開始。

As you've discussed, channel inventories still remain above optimal levels.

正如您所討論的，渠道庫存仍然高於最佳水平。

Can you give any relative sense as to just how overstocked they are?

您能否對它們的庫存過剩程度給予一些相對的認識？

I don't have discrete data I can share with you on that, Chris.

克里斯，我沒有可以與您分享的離散數據。

But the bigger problem actually isn't inventory of our products, it's generalized inventory of all products in agriculture.

但更大的問題實際上不是我們產品的庫存，而是所有農業產品的整體庫存。

So obviously, we're a short liner in that space.

顯然，我們是這個領域的短線。

And as the dealers come under pressure on their balance sheets, the pressure exerted on them by the bigger OEMs becomes more intense, and we gradually get squeezed, meaning we have less space than the overall inventory of the dealers.

而且隨著經銷商的資產負債表受到壓力，大主機廠對經銷商的壓力越來越大，我們逐漸受到擠壓，這意味著我們的空間比經銷商的整體庫存還要少。

We believe and we've been able to track through our AR accounts.

我們相信並且我們已經能夠透過我們的 AR 帳戶進行追蹤。

The inventory is down about 10% to 15% at this point compared to the peak, but it's still got a long way to go.

與高峰相比，目前庫存下降了約 10% 至 15%，但仍有很長的路要走。

And obviously, the dealers are still trying to deplete their balance sheet.

顯然，經銷商仍在試圖耗盡他們的資產負債表。

So that's my best estimate.

這是我最好的估計。

That's the best I share with you.

這是我與你分享的最好的。

That's fine.

沒關係。

That's helpful.

這很有幫助。

It seems almost likely at this point that we'll get maybe a small rate cut or two in second half.

目前看來，下半年我們可能會小幅降息一兩次。

Would it take a significant rate cut?

是否需要大幅降息？

Or could one or two smaller cuts create a little momentum?

或者一兩次較小的削減能否產生一點動力？

Yeah.

是的。

I think the signal of a rate cut is very important, Chris, and I'd like to add a couple of comments here.

克里斯，我認為降息的信號非常重要，我想在這裡補充幾點意見。

The part of the vegetation management that's struggling the most is actually forestry, not agriculture.

植被管理中最困難的部分實際上是林業，而不是農業。

And forestry came to a very sharp and sudden halt when interest rates rose.

當利率上升時，林業突然急劇停止。

You can actually track it almost dollar for dollar.

實際上，您幾乎可以一美元一美元地跟踪它。

So I believe just the psychology of the first rate cut will start to restore momentum in forestry and that's the biggest single challenge we have at the moment.

因此，我相信第一次降息的心理將開始恢復林業的勢頭，這是我們目前面臨的最大挑戰。

So I do believe that first rate cut will start to see our results improve.

因此，我確實相信，第一次降息將開始看到我們的績效改善。

I don't think it will take a lot more than that because although there is an inventory overhang in forestry, it's not in these big machines.

我認為不會需要更多的時間，因為儘管林業有庫存過剩，但這些大型機器並不存在庫存過剩。

It tends to be in the smaller machines that we used for clearing land, as I commented on the call, but our big grinders and shippers, there really isn't much field inventory.

正如我在電話中評論的那樣，它往往是在我們用於清理土地的小型機器中，但我們的大型研磨機和托運商實際上沒有太多的現場庫存。

Our dealers hold a demonstrator to, but generally, those machines that build to order.

我們的經銷商持有演示機，但通常是那些按訂單生產的機器。

So I think that first interest rate cut is very significant, and we might start to see that recovery in forestry probably in the fourth quarter.

所以我認為第一次降息意義重大，我們可能會在第四季開始看到林業的復甦。

It depends on when the first rate cut happens.

這取決於第一次降息何時發生。

I'm being very cautious because a year ago, I thought we were going to see a rate cut coming, remember, were all talking about March, right, and here we are in August, and it's not there yet.

我非常謹慎，因為一年前，我以為我們會看到降息，記住，我們都在談論三月，對吧，現在是八月，但還沒到來。

So forgive me for hedging my bets a little bit there.

所以請原諒我在這裡稍微對沖了我的賭注。

All good.

一切都好。

Maybe just stay with Morbark for a second.

也許就跟莫巴克待一會兒吧。

So my rough math is including parts and services, revenue was in the $300 million range last year.

我粗略地算了一下，包括零件和服務，去年的收入大約在 3 億美元。

Is that close?

很接近嗎？

Yeah, that's fairly close.

是的，那相當接近。

Okay.

好的。

And this year, it's probably -- it'll be closer to $200 million and $300 million from where you're sitting today.

今年，從你今天的情況來看，它可能會接近 2 億美元和 3 億美元。

Correct.

正確的。

That's right.

這是正確的。

Got it.

知道了。

And just my last one.

這只是我的最後一個。

Vegetation operating margin, 7.6% in Q2, what would it take to approach a 10% operating margin second half of the year?

植被營運利潤率，第二季為 7.6%，如何在下半年達到 10% 的營運利潤率？

Is that -- that's unrealistic, but you can expect some improvement from the 7.6%?

是不是——這不切實際，但您可以預期 7.6% 會有所改善？

Well, a couple of things I would say, Chris.

好吧，我想說幾件事，克里斯。

First of all, that 7.6% is net of corporate costs.

首先，7.6% 是扣除公司成本後的淨值。

And so as the division sales fall, corporate costs become a bigger impact to them.

因此，隨著部門銷售額下降，企業成本對他們的影響更大。

That's simple math.

這是簡單的數學。

From an operating -- what we call operating margin, operating income in the [parlance] of the company, that's already north of 10% before the corporate cost that I mentioned.

從營業額來看－我們所說的營業利潤率，也就是公司[用語]的營業收入，在我提到的公司成本之前已經超過了 10%。

And that's not a bad spot, for years and years, this company target a 10% operating margin.

這並不是一件壞事，多年來，該公司的目標是 10% 的營業利潤率。

So it's not a bad place to be.

所以這裡不是一個壞地方。

But I would tell you that most of that division is already north of 10% net of corporate costs with the exception of forestry and tree care.

但我要告訴你的是，除了林業和樹木護理之外，大部分部門的企業成本淨值已經超過 10%。

It's forestry and tree care that has really suffered.

林業和樹木護理確實受到了影響。

And you can imagine that's the largest facility we have and over 1 million square feet just in the primary facility and 400,000 square feet in the second, when the volume drops as significantly as it did, under-absorption becomes an impact.

您可以想像這是我們擁有的最大的設施，主要設施的面積超過 100 萬平方英尺，第二個設施的面積為 40 萬平方英尺，當體積大幅下降時，吸收不足就會產生影響。

The second comment I wanted to make is when you look at the global headcount numbers that we mentioned, the headcount reduction numbers, that's essentially all been in forestry and tree care -- excuse me, across the vegetation management division.

我想說的第二個評論是，當你看看我們提到的全球員工人數時，員工人數減少的數字，基本上都是在林業和樹木護理方面——對不起，是在整個植被管理部門。

So the cuts in that division are very, very significant at this point.

因此，目前該部門的削減非常非常重大。

And so the savings that Agnes signaled both in the press release and in her remarks, will all fall into vegetation management.

因此，艾格妮絲在新聞稿和演講中表示的節約將全部用於植被管理。

So as you think about your model, that $10 million in savings that we've -- just for the remainder of this year, the last two quarters of this year will all be in vegetation management.

因此，當你考慮你的模型時，我們已經節省了 1000 萬美元——僅在今年剩餘時間內，今年最後兩個季度將全部用於植被管理。

That's very helpful.

這非常有幫助。

I'll leave it there.

我會把它留在那裡。

Thanks, guys.

謝謝，夥計們。

Appreciate it, Chris.

很感激，克里斯。

Mike Shlisky, DA Davidson.

麥克·什利斯基，檢察官戴維森。

Yes, good morning.

是的，早安。

Thanks for taking my questions.

感謝您回答我的問題。

Hi Mike.

嗨，麥克。

I first wanted to clarify your last answer there, Jeff, about the cost savings.

傑夫，我首先想澄清你最後一個關於節省成本的答案。

So first, you said there was -- the $10 million is a full year number or just a back half number?

首先，您說 1000 萬美元是全年數字還是後半年數字？

Back half of this year.

今年下半年。

Okay.

好的。

So then looking at '25, can you maybe give us -- just to confirm what the annualized number would be, and could you make that a gross number?

那麼，看看 25 年，您能否給我們 - 只是為了確認年化數字是多少，您能否將其作為總數字？

In other words, kind of not taking out all the one-time cost of severance and so forth.

換句話說，就是不扣除所有一次性遣散費等費用。

Mike, we anticipated somebody would ask us that question, and we're not ready to signal that yet because these actions are underway, and we still have employee notifications to do.

麥克，我們預計有人會問我們這個問題，但我們還沒有準備好發出信號，因為這些行動正在進行中，而且我們仍然有員工通知要做。

So we walk a very fine line here in what we say further about the restructuring actions we're taking.

因此，我們在進一步討論我們正在採取的重組行動時，會採取非常謹慎的態度。

I hope you can appreciate that.

我希望你能欣賞這一點。

I will share more interim with you when it becomes available.

當有更多臨時資訊可用時，我將與您分享。

But as of today, I don't want to signal a number like that.

但從今天開始，我不想發出這樣的數字。

We still have employee notifications in progress at various locations.

我們仍在各地點發出員工通知。

Okay.

好的。

Sure.

當然。

No problem.

沒問題。

I was actually also curious about -- you hear a lot about infrastructure.

我其實也很好奇——你聽過很多關於基礎設施的內容。

There was a big hurricane in Texas.

德州發生了一場大颶風。

I'm sure you heard about that recently or experienced it.

我相信您最近聽說過或經歷過。

And these issues are not going away.

這些問題不會消失。

There's been people who are not maintaining their power lines.

有些人不維護電源線。

They're not properly taking away branches (technical difficulty) infrastructure that's causing fire and it's causing things to fall down during heavy winds.

他們沒有正確拆除導致火災的樹枝（技術難度）基礎設施，並導致大風期間物體倒塌。

It's not a problem that's kind of -- in theory, it's a problem that's really issue today and not just because the storms but because of data centers and trying to keep those running on a consistent basis with their power supply.

從理論上講，這不是一個問題，而是當今真正存在的問題，不僅是因為風暴，還因為資料中心以及試圖保持其與電力供應一致的基礎上運作。

Have you gotten any new inquiries from utilities or data center players and trying to find ways to keep branches away over the last couple of months as those kinds of issues have been hitting in the headlines more?

在過去的幾個月裡，您是否收到了來自公用事業公司或資料中心參與者的新詢問，並試圖找到讓分行遠離這些問題的方法，因為這類問題越來越多地成為頭條新聞？

Mike, that's a very, very interesting and insightful question.

麥克，這是一個非常非常有趣且富有洞察力的問題。

And the straight answer is actually, no, we haven't, which is very surprising.

直接的答案實際上是，不，我們沒有，這非常令人驚訝。

I commented in my remarks on the call that normally, the big national pre-care accounts would be doing fleet renewals at this point, adding shippers into the fleet, particularly given the forecast for a very active storm season this year.

我在電話會議上的發言中評論說，通常情況下，大型國家預護理帳戶此時會進行船隊更新，將托運人加入船隊，特別是考慮到今年風暴季節將非常活躍。

I believe what's holding them back is interest rates.

我相信阻礙他們的是利率。

Obviously, these are sophisticated buyers.

顯然，這些都是精明的買家。

They buy a lot of equipment, they tend to buy a lot of identical equipment, large volumes of the same product to staff their fleets (technical difficulty) North America.

他們購買大量設備，他們傾向於購買大量相同的設備、大量相同的產品來為他們的北美車隊配備人員（技術難度）。

But I think they're just sophisticated enough, they know when interest rates coming, and they can probably get a better price in a few months down the line.

但我認為他們足夠成熟，他們知道利率何時到來，並且可能在幾個月內獲得更好的價格。

So I think they're gambling a little bit.

所以我認為他們有點賭博。

But the simple answer to your question is no, we have not seen that.

但對你的問題的簡單回答是否定的，我們還沒有看到這一點。

All right.

好的。

Could you share with us in the industrial truck supply, Texas supply have you gotten enough or what you need recently?

您能跟我們分享一下工業卡車供應嗎，德州的供應您夠了嗎？

Or are you still waiting on a bunch of chassis for that business?

或者您還在等待該業務的一堆底盤嗎？

No.

不。

We have excellent news on the chassis front, Mike.

麥克，我們有關於底盤方面的好消息。

First of all, and very interestingly, we've seen enough tick in the electrified chassis for our M6 electric sweeper.

首先，非常有趣的是，我們在 M6 電動清掃機的電動底盤上看到了足夠的滴答聲。

We had a very pleasant surprise from our supplier in terms of the number of those chassis they'll be able to deliver to us in the back half of the year.

我們的供應商給我們帶來了非常驚喜，他們將在今年下半年向我們交付這些底盤的數量。

It's still small numbers, but it's a more significant small number than it had been.

雖然這個數字仍然很小，但比以前更重要了。

That was a pleasant surprise.

這真是個驚喜。

Also, we've been offering significant incremental chassis for the remainder of this year.

此外，我們一直在今年剩餘時間內提供大量增量底盤。

And for 2025, it looks like we're going to get everything we ask for, and believe me, we asked for a lot.

到 2025 年，看起來我們將得到我們所要求的一切，相信我，我們要求了很多。

So in short, while the allocations are completely over, there doesn't seem to be any restriction from what I can see on chassis.

簡而言之，雖然分配已經完全結束，但從我在底盤上看到的情況來看，似乎沒有任何限制。

Now chassis mix still matters a little bit.

現在底盤組合仍然很重要。

There are large volumes of some chassis and other chassis still remain constrained.

有些底盤體積較大，而有些底盤仍然受到限制。

What's happening is the large over-the-road hauling companies are cutting back their purchases, and that's freeing up capacity with the chassis suppliers, and they're trying to reallocate based on how many axles they have and the transmissions and so on, Mike, you can imagine how that plays.

正在發生的事情是，大型公路運輸公司正在削減採購量，從而釋放了底盤供應商的產能，他們正試圖根據擁有的車軸和變速箱等數量進行重新分配，邁克，你可以想像它是如何發揮的。

But we are very, very bullish about our supply chain situation for 2025 and for the back half of 2024 as well.

但我們對 2025 年和 2024 年下半年的供應鏈狀況非常非常樂觀。

Great.

偉大的。

Thanks for that.

謝謝你。

Maybe one last one for me, and this is for Agnes.

也許是我的最後一張，這是給艾格妮絲的。

You haven't been around all that long, but can you give us your early thoughts as to what you've seen so far and what you might look to do or change in the financial operation and capital structure of the company or in the broader businesses out in the field?

您加入公司的時間並不長，但您能否向我們介紹一下您迄今為止所看到的情況以及您可能會在公司的財務運營和資本結構或更廣泛的方面採取或改變的想法？企業？

It hasn't been a long time for me, but I feel like I have never not been here.

對我來說，時間不長，但我感覺自己從來沒有來過這裡。

So it's a really great few months.

所以這幾個月真的很棒。

Alamo is set up very well.

阿拉莫的設定非常好。

So from a capital structure perspective, we're very disciplined in terms of managing our funds.

因此，從資本結構的角度來看，我們在管理資金方面非常自律。

And we will continue investing in our operations, and Jeff alluded to that.

我們將繼續投資我們的運營，傑夫提到了這一點。

So we have a number of capital projects that are approved and in the works to modernize our plants and to expand our capacity.

因此，我們有許多資本項目已獲得批准並正在進行中，以實現工廠現代化並擴大產能。

We are committed to returning capital to our shareholders.

我們致力於向股東返還資本。

So we're really happy about the dividend that's been approved just recently.

因此，我們對最近批准的股息感到非常高興。

And we'll continue managing our debt.

我們將繼續管理我們的債務。

I think we can reduce that further, and of course, be ready for those acquisitions.

我認為我們可以進一步減少這種情況，當然，為這些收購做好準備。

We're already ready.

我們已經準備好了。

So we're ready for the next one and our balance sheet is pretty strong.

因此，我們已經為下一場做好了準備，而且我們的資產負債表非常強勁。

In terms of operational excellence, there's a lot of collaboration between all of the management in our plants.

在卓越營運方面，我們工廠的所有管理層之間進行了大量的協作。

And so that's very exciting.

這非常令人興奮。

We have quite a lot going on at the moment.

目前我們有很多事情要做。

Yes, Mike, just to add a color comment to that, we had a very active discussion about that in the Boardroom this week, various capital allocation alternatives.

是的，麥克，只是想對此添加一個色彩評論，本週我們在董事會中就各種資本配置方案進行了非常積極的討論。

And while we're not ready to announce anything yet, it's an active discussion because we are getting to the point where the debit on our balance sheet is very manageable.

雖然我們還沒有準備好宣布任何消息，但這是一個積極的討論，因為我們已經達到了資產負債表上的借方非常易於管理的程度。

And Jeff's answer to that as I plan to use that for M&A because our pipeline is looking particularly attractive right at the moment, both short term and longer term.

傑夫對此的回答是，我計劃將其用於併購，因為我們的管道目前看起來特別有吸引力，無論是短期還是長期。

Okay.

好的。

Well, that's great color.

嗯，那顏色真棒。

Thank you, Agnes.

謝謝你，艾格妮絲。

Thank you, Jeff.

謝謝你，傑夫。

I'll pass it along.

我會把它傳遞下去。

Thank you.

謝謝。

Mig Dobre, Baird.

米格·多布雷，貝爾德。

Thank you, and thanks for taking the questions and good morning.

謝謝您，也謝謝您提出問題，早安。

I want to go back to the restructuring discussion.

我想回到重組討論。

Just to make sure that I understand here, so you were saying $10 million worth of savings, and those are materializing in the second half of 2024.

只是為了確保我理解這裡的意思，所以你說的是價值 1000 萬美元的節省，這些將在 2024 年下半年實現。

So is that -- what's the right way to think about it in terms of Q3 versus Q4?

那麼，從第三季和第四季的角度來看，正確的思考方式是什麼？

And I'm presuming that this is a year-over-year number in the way you're describing it.

我假設這是您所描述的逐年數字。

Is that the way to think about it?

是這樣思考的嗎？

So let me start answering this.

那麼讓我開始回答這個問題。

So we started these actions already in second quarter and before that.

因此，我們在第二季及之前就開始了這些行動。

And so what we have so far is we've completed, I called it a first set of actions.

到目前為止，我們已經完成了，我稱之為第一組行動。

And from this first set of actions, we'll have $10 million, maybe even a little bit over this year.

從第一組行動中，我們將獲得 1000 萬美元，甚至可能比今年少一點。

Of that, we had a little bit already in second quarter, but we also had restructuring costs in second quarter.

其中，我們在第二季已經有了一些，但我們在第二季也有重組成本。

So when we look at the $10 million that is really the impact in Q2 and Q3.

因此，當我們看到 1000 萬美元時，這確實是第二季和第三季的影響。

We are working on more actions.

我們正在採取更多行動。

So there are activities that will be going on in third quarter.

第三季將進行一些活動。

We cannot -- we didn't announce that yet, so we can't talk very specifically about that.

我們不能——我們還沒有宣布這一點，所以我們不能非常具體地談論這一點。

And we have a number of activities in our plans.

我們的計劃中有許多活動。

So as we complete those actions and those are announced, we'll let you know what the full year and how that shapes up for 2025 as well.

因此，當我們完成這些行動並宣布這些行動時，我們將讓您了解全年的情況以及 2025 年的情況。

I just want to be very clear as to what this number means.

我只是想非常清楚這個數字的意思。

When you're saying $10 million, is this a full year run rate figure?

當您說 1000 萬美元時，這是全年運行率數字嗎？

Is this something that flows through the quarter?

這是整個季度都會發生的事情嗎？

I mean, look, it has an impact in the way we're kind of modeling the quarter, that's why I'm asking.

我的意思是，看，它對我們對季度建模的方式產生了影響，這就是我問的原因。

This is just the second half impact.

這只是下半場的影響。

And I would echo that as well, Mig.

我也同意這一點，米格。

This is what we anticipate an improvement just in the second half of 2024.

這是我們預計 2024 年下半年會出現的改善。

Which will carry into 2025, then at least into the front.

這將持續到 2025 年，然後至少持續到前面。

Of course, unless we see a turn in the market, and we need to start rehiring people.

當然，除非我們看到市場出現轉變，否則我們需要開始重新招募人員。

This is, at the moment, all people related.

目前，這是所有相關的人。

The impact -- the financial impact of the facilities consolidations we're doing has not been seen or have we announced those separately.

我們正在進行的設施整合的財務影響尚未顯現，我們也沒有單獨宣布這些影響。

I hated there would be more information flowing as we get those actions underway.

我討厭當我們採取這些行動時會有更多的資訊流動。

But at the moment, this is just due to the people.

但目前，這只是由於人民。

And from a reporting standpoint, you are not adjusting out the restructuring costs associated with the savings.

從報告的角度來看，您並沒有調整與節省相關的重組成本。

I'm curious as to why that is.

我很好奇這是為什麼。

Yeah.

是的。

Well, Mig, frankly, it's because most of the cost of the (technical difficulty) actually were incurred in Q1, not Q2.

嗯，米格，坦白說，這是因為（技術難度）的大部分成本實際上是在第一季而不是第二季發生的。

And I think later on, we will begin to publish that.

我想稍後我們將開始發布它。

But you know us, that's not our tradition to use adjusted EBITDA.

但您知道我們，這不是我們使用調整後 EBITDA 的傳統。

We've just never done that, and I frankly don't like it very much.

我們只是從來沒有這樣做過，坦白說我不太喜歡它。

I don't mind sharing what the costs were in dollars, but I don't like constantly adjusting EBITDA.

我不介意分享以美元計算的成本，但我不喜歡不斷調整 EBITDA。

That's just not our style.

那不是我們的風格。

You know us.

你了解我們。

We haven't done that in our history.

我們歷史上還沒有這樣做過。

That's just not who we are.

我們不是這樣的人。

Well, it would be helpful to know the cost because those are not recurring that sort of allows us to have a cleaner base internally and how we're thinking about incremental margins or

好吧，了解成本會很有幫助，因為這些成本不會重複出現，這可以讓我們在內部擁有更乾淨的基礎，以及我們如何考慮增量利潤或

[decrementals].

[遞減]。

So if you can put that out, I think that would be helpful.

所以如果你能把它說出來，我想那會很有幫助。

Sure.

當然。

And I'm sure we can do that with you in a follow-up call at some point later.

我確信我們可以在稍後的後續電話會議中與您一起做到這一點。

Okay.

好的。

I do want to go back to a discussion that we've been having for a couple of quarters now in terms of the backlog and vegetation management and what that implies for revenues going forward.

我確實想回到我們幾個季度以來一直在討論的問題，即積壓訂單和植被管理以及這對未來收入的影響。

If I look at your orders, your orders for the past, call it, six months or so have really been in the $150 million ranger, give or take.

如果我看看你的訂單，你過去的訂單，就這樣吧，六個月左右的時間確實已經在 1.5 億美元的範圍內，無論給予還是接受。

And the backlog, obviously, is coming down.

顯然，積壓的訂單正在減少。

So I guess my question to you is, if we do not see an inflection in orders in the second half of 2024 in Vegetation, we remain in this range, let's call it $150 million-ish range.

因此，我想我向您提出的問題是，如果 2024 年下半年植被訂單沒有出現變化，我們將保持在這個範圍內，我們稱之為 1.5 億美元左右的範圍。

At what point in time should we expect your revenues or your production to catch down to these orders?

我們應該期望您的收入或產量在什麼時間點趕上這些訂單？

Should this happen in Q4?

這應該發生在第四季嗎？

Or do you think this is going to be more of a first half of 2025 occurrence?

或者您認為這會更多地發生在 2025 年上半年嗎？

I think that's probably more of a first half of 2025 occurrence, Mig.

我認為這可能會在 2025 年上半年發生，Mig。

A couple of things I can share with you in terms of additional detail.

我可以在更多細節方面與您分享一些事情。

The bookings in forestry alone did tick up a little bit, and we didn't signal a number and I'm not going to, but they're actually up a bit.

僅林業的預訂量確實有所上升，我們沒有發出具體數字，我也不會這樣做，但實際上確實有所上升。

While the agricultural side continues to trend downwards.

而農業方面則持續呈下降趨勢。

So net-net, that's what you see in the numbers.

所以淨淨，這就是你在數字中看到的。

Also, the 12-month trailing order bookings for this division have been flat for the last almost six-months.

此外，該部門的 12 個月追蹤訂單預訂量在過去近六個月內持平。

So I think we either are or very near rock bottom here.

所以我認為我們要么已經或非常接近谷底。

The final piece I can share with you is that in the second quarter, we have very few order cancellations at all.

我可以與大家分享的最後一點是，在第二季度，我們的訂單取消量非常少。

And we've had significant order cancellations in Q3, Q4 and Q1 -- Q3 and Q4 of 2023 and Q1 of 2024.

我們在第三季、第四季和第一季（2023 年第三季和第四季以及 2024 年第一季）出現了大量訂單取消。

So what you're seeing is sort of this firming up of the order book, which is a very positive sign.

所以你所看到的是訂單簿的穩固，這是一個非常正面的訊號。

I think agriculture is going to be the more challenged in terms of order run rates than forestry.

我認為農業在訂單運行率方面將比林業面臨更大的挑戰。

I'm anticipating, as I said earlier on the call, but a little bit of help from interest rates, forestry is going to start to tick back up.

正如我之前在電話會議上所說，我預計，在利率的幫助下，林業將開始回升。

As I said, the bookings have already done that, but I think the order backlog will start to tick up as well.

正如我所說，預訂量已經做到了這一點，但我認為訂單積壓也將開始增加。

Understood.

明白了。

That's helpful color.

這是有用的顏色。

In your actions, though, in the way you were kind of rightsizing the labor force, is it fair to say that you are rightsizing towards something closer to this kind of $150 million, $160 million revenue per quarter for this segment?

不過，在您的行動中，以您調整勞動力規模的方式，可以公平地說，您正在調整規模，使該細分市場的每季收入接近 1.5 億美元、1.6 億美元嗎？

I'm not sure I would say we're rightsizing toward that, but we're still taking very extreme measures to protect the bottom line, Mig, I'm not sure what normal will be.

我不確定我是否會說我們正在為此調整規模，但我們仍在採取非常極端的措施來保護底線，米格，我不確定什麼是正常情況。

I think this market will certainly rebound.

我認為這個市場一定會反彈。

I mean this is not a traditional number at all.

我的意思是這根本不是一個傳統的數字。

But what certainly got my attention were the dramatic moves that the big OEMs in agricultural have taken over the past, let's say, two months, you've been following them and reporting on them very nicely.

但引起我注意的是農業領域的大型原始設備製造商在過去（比如說，兩個月）採取的戲劇性舉措，您一直在跟踪他們並很好地報告他們。

Thank you, which says to me the big ag OEMs are expecting this downturn to be a little harsher and longer than, say, the more cyclic downturns of the past.

謝謝，這對我來說，大型農業原始設備製造商預計這次衰退會比過去的周期性衰退更嚴重、更持久。

That got my attention, and we are acting accordingly.

這引起了我的注意，我們正在採取相應行動。

So hence, the restructuring of North American agriculture to consolidate production there for the long term.

因此，北美農業需要重組，以長期鞏固那裡的生產。

But I will say, at least one of the facilities that we are going to vacate, we are not planning to divest.

但我要說的是，至少我們要騰出的設施之一，我們不打算剝離。

We're going to mothball that facility and put it on care and maintenance, so that if we see a resurgence of business, we can put that plant back into use very quickly.

我們將封存該設施並對其進行維護和保養，這樣，如果我們看到業務復甦，我們可以很快地使該工廠重新投入使用。

And as I said, another one of our facilities is going to be reconfigured to produce industrial products where we see overwhelming demand at the moment, particularly in vacuum trucks.

正如我所說，我們的另一個工廠將進行重新配置，以生產目前需求旺盛的工業產品，特別是真空卡車。

So we need to set up some additional production capacity there.

所以我們需要在那裡建立一些額外的生產能力。

So I think we've got a well-thought-out plan here, Mig.

所以我認為我們已經有了一個深思熟慮的計劃，米格。

I called the bottom once before, and he told me I was wrong, and unfortunately, you were right.

我之前打過一次底部電話，他告訴我我錯了，不幸的是，你是對的。

So I'm being a little bit more cautious this time and just sort of depending where the bottom might finally be.

所以這次我要更加謹慎一點，只是取決於底部最終可能在哪裡。

No, I appreciate that.

不，我很欣賞這一點。

And everybody's crystal ball is a little hazy these days.

如今每個人的水晶球都有點模糊。

So I certainly can relate to the challenge.

所以我當然可以理解這個挑戰。

But maybe one last question on vegetation management, really surrounding the decremental margins in the first half, the decremental margin have been north of 40%.

但也許關於植被管理的最後一個問題，實際上圍繞著上半年的遞減幅度，遞減幅度已超過 40%。

And with the combination of cost savings that you have coming in the back half and the incremental pressure that we're going to see on volumes, what's the right way to think about decremental margins?

考慮到下半年的成本節約和我們將在銷售上看到的增量壓力，考慮利潤下降的正確方法是什麼？

And maybe this is a question for Agnes.

也許這是艾格妮絲的問題。

I mean how do you have modeled it internally?

我的意思是你是如何在內部對其進行建模的？

A couple of things to think about is the restructuring costs that we have between Q1 and Q2 that will not repeat in Q3 -- in Q4.

需要考慮的幾件事是我們在第一季和第二季之間的重組成本不會在第三季或第四季重複。

So we had reported $1.7 million year-to-date.

因此，我們今年迄今已通報 170 萬美元。

And the $10 million is -- that we've reported as pure savings basically split between Q3 and Q4.

我們報告的 1000 萬美元是純粹的節省，基本上在第三季和第四季之間分配。

What I can't tell you more yet is -- and we will once we have more information, but what I can't tell you more yet is additional actions that we're taking in Q3.

我還不能告訴你更多的是——一旦我們獲得更多信息，我們就會告訴你更多，但我還不能告訴你更多的是我們在第三季度採取的額外行動。

Yeah.

是的。

Mig, let me add a little bit more color to that, if I might.

米格，如果可以的話，讓我給它一點色彩。

In terms of pricing, we're not seeing a lot of pricing pressure in forestry to be candid with you.

在定價方面，坦白說，我們沒有看到林業面臨很大的定價壓力。

We are seeing some pricing pressure in ag, but it's not actually that significant, pricing really doesn't matter when there's no demand to speak of.

我們看到農業面臨一些定價壓力，但實際上並沒有那麼大，當沒有需求可言時，定價其實並不重要。

So the actual cost price margin is holding up very well.

因此，實際成本價差保持得很好。

In fact, it actually ticked up just a little bit.

事實上，它實際上只是上漲了一點點。

But the under absorption, the efficiency effects of this sudden reduction in demand are significant in this division because this division has large facilities.

但是，由於該部門擁有大型設施，因此需求突然減少的吸收不足和效率影響在該部門中非常顯著。

I said, 1.4 million cubic feet of space in forestry and all smaller but similar number or a similarly significant number in agricultural equipment.

我說的是 140 萬立方英尺的林業空間，以及較小但相似數量或類似數量的農業設備空間。

So the restructuring actions to consolidate that capacity will eliminate significant under-absorption.

因此，鞏固產能的重組行動將消除嚴重的吸收不足現象。

We started with people, but obviously, people don't take out the semi-fixed costs and facilities, the people related to material handling and maintaining the plants and so on.

我們從人開始，但顯然，人們不會扣除半固定成本和設施，以及與材料處理和維護工廠等相關的人員。

The only way you capture those costs is to (technical difficulty) the facilities.

捕獲這些成本的唯一方法是（技術難度）設施。

So that's why the urgent need to consolidate production facilities, even beyond what we had anticipated in our strategic plan two years ago.

這就是為什麼迫切需要整合生產設施，甚至超越我們兩年前戰略計畫的預期。

Understood.

明白了。

Final question on Industrial Equipment.

關於工業設備的最後一個問題。

And I guess two parts here.

我想這裡有兩個部分。

First, the impact on -- from the strike, very helpful in telling the sales and operating income.

首先，罷工的影響，對於銷售和營業收入非常有幫助。

Do you anticipate you're going to make that figure back in Q3, Q4?

您預計在第三季、第四季實現這一數字嗎？

Is that lost business or just deferred business?

這是失去的業務還是只是延期的業務？

And then the second part of the question on a margin front, really, really nice performance in Q2 despite the strike.

然後問題的第二部分是關於利潤率的，儘管有罷工，但第二季的表現確實非常好。

So if that's the case that you can actually make back some of this lost revenue, should we think about margins maybe getting closer to 15% exiting 2024?

因此，如果您實際上可以彌補部分收入損失，我們是否應該考慮到 2024 年利潤率可能會接近 15%？

Thank you.

謝謝。

I'll give Jeff to answer to that first.

我會讓傑夫先回答這個問題。

Well, I'm going to give Agnes a minute with a pencil here.

好吧，我要給艾格妮絲一點時間用鉛筆。

I think the margins will continue to rise in the industrial division, Mig.

我認為工業部門的利潤率將繼續上升，米格。

Yes, that $3.5 million or so that we signaled $3 million plus of operating income effect, that is one-time.

是的，大約 350 萬美元左右，我們表示對營業收入的影響超過 300 萬美元，這是一次性的。

So yes, you should get that back.

所以是的，你應該把它拿回來。

And I'm looking at the guy that runs that business right now, and he's shaking his head up and down in a positive way.

我看著現在經營這家公司的人，他正以積極的方式上下搖頭。

Secondly, we do have good price advantage.

其次，我們確實有很好的價格優勢。

As you know, in that space, we compete with reputable companies who also like to make money.

如您所知，在這個領域，我們與同樣喜歡賺錢的信譽良好的公司競爭。

I've said that many times, and I mean that to be complementary toward them.

我已經說過很多次了，我的意思是對他們進行補充。

Right now, there's very, very significant demand for all the products right across the portfolio in industrial.

目前，工業領域對所有產品的需求非常非常大。

So the other thing that's happening is obviously the operating efficiencies there continue to improve.

因此，正在發生的另一件事顯然是那裡的營運效率不斷提高。

We are to the point now where effectively under absorption is approaching zero.

我們現在已經到了有效吸收不足接近零的地步。

We had significant underabsorption in the second quarter related to the strike.

第二季我們對與罷工相關的吸收嚴重不足。

That obviously goes away.

這顯然消失了。

But we are to the point now where we need to expand facilities.

但我們現在已經到了需要擴大設施的地步。

So for example, we had previously announced a significant expansion of our facility in France that produces vacuum trucks.

例如，我們先前宣布大幅擴建我們在法國生產真空卡車的工廠。

That's underway.

正在進行中。

A couple of our directors just went to inspect that a couple of days ago and see where we are with that.

幾天前，我們的幾位主管剛剛去視察了，看看我們的進展如何。

And as I said, we're going to reconfigure one of our vegetation management plans to produce industrial products, which we can do relatively quickly.

正如我所說，我們將重新配置我們的植被管理計劃之一以生產工業產品，我們可以相對快速地做到這一點。

That's a way to also continue -- a way to continue to employ people in that facility.

這也是一種繼續下去的方式——一種繼續在該設施中僱用人員的方式。

So we are very bullish on industrial.

所以我們非常看好工業。

I've said for a long time, industrial could get to where it is now.

我已經說過很長一段時間了，工業可以達到現在的水準。

That part of my prognostication came true.

我的那部分預言成真了。

And I think there is still (technical difficulty) margin expansion potential in this division.

我認為這個部門仍然有（技術難度）利潤率擴張的潛力。

Appreciate it.

欣賞它。

Good luck.

祝你好運。

Thank you.

謝謝。

Appreciate it Mig.

欣賞米格。

(Operator Instructions).

（操作員說明）。

Greg Burns, Sidoti & Company.

格雷格‧伯恩斯 (Greg Burns)，西多蒂公司 (Sidoti & Company)。

Good morning.

早安.

The business that you mentioned that you're divesting or to divest, what kind of financial impact might that have?

您提到您正在剝離或即將剝離的業務，這可能會產生什麼樣的財務影響？

And are you looking at other products or businesses that you might be looking to divest?

您是否正在考慮可能想要剝離的其他產品或業務？

Yes.

是的。

No, we really are not looking to divest other businesses at this point, Greg.

不，格雷格，我們目前確實不打算剝離其他業務。

And I can't say too much about this except it's a very small part of the business.

我不能對此說太多，但它只是業務的一小部分。

It's really not material to our financial results.

這對我們的財務表現確實並不重要。

So it's just one that's been working out there.

所以這只是一個一直在那裡進行的工作。

It's a clean up activity.

這是一項清理活動。

But we saw an opportunity to take care of it now at this point in the cycle and are going to do that.

但我們現在看到了在周期的這個時刻處理它的機會，並且將這樣做。

But we do have very significant consolidation actions being planned and underway in the agricultural side of the business as well as in forestry and tree care.

但我們確實在農業業務以及林業和樹木護理方面正在計劃和正在進行非常重大的整合行動。

So those are the common -- we will share the impact of those as we go.

所以這些都是共同點——我們將分享這些影響。

But again, those should not be revenue impacting.

但同樣，這些不應影響收入。

That should only impact operating margin in a favorable way.

這只會以有利的方式影響營業利潤率。

Okay.

好的。

And the strong demand on the industrial side of the business, what are the primary drivers there?

工業方面的強勁需求，主要驅動力是什麼？

Is there just more federal dollars flowing to municipalities and they're accelerating their upgrade cycles?

是否有更多的聯邦資金流向市政當局並且他們正在加速升級週期？

Or how should we think about what's driving demand now and the durability of that demand?

或者我們應該如何思考現在推動需求的因素以及該需求的持久性？

Greg, the municipal side of this isn't really showing significant growth.

格雷格，市政方面並沒有真正顯示出顯著的成長。

It's holding at a very high level, it's the way I like to describe it, which in an election year is a victory in and of itself, you typically can see pressure on these markets in an election year, particularly in the second quarter.

它保持在非常高的水平，這是我喜歡描述它的方式，在選舉年這本身就是一場勝利，你通常可以在選舉年看到這些市場面臨的壓力，特別是在第二季度。

And I've said that before publicly.

我之前已經公開說過這一點。

So I think people know, at least I believe that to be the case.

所以我認為人們知道，至少我相信情況是這樣。

What is going on though is industrial demand for these products.

但目前的情況是這些產品的工業需求。

So particularly, vacuum truck rental fleets are getting renewed at a very significant rate.

特別是，真空卡車租賃車隊正在以非常顯著的速度更新。

And then finally, we're gaining some market in some of these businesses.

最後，我們在其中一些業務中贏得了一些市場。

We've had very good take-up on our new range of products in our sweeper group, particularly our electrified products have been launched with great acceptance by the market.

我們的掃地機系列新產品系列得到了很好的接受，特別是我們的電動產品一推出就受到了市場的廣泛認可。

We've been pleased with that.

我們對此很滿意。

And as I said, our vacuum truck demand is still rising.

正如我所說，我們的真空卡車需求仍在成長。

So we need to expand capacity there.

所以我們需要擴大那裡的產能。

So it's more of the industrial side and contractor side of business that's showing the sharp uptick in demand at the moment.

因此，目前需求急劇上升的更多是工業方面和承包商方面的業務。

Will governmental remains still growing, still growing at a nice rate, but sort of low single-digit growth in the governmental side right now.

政府是否仍會繼續成長，仍然以不錯的速度成長，但目前政府的成長有點低個位數。

And in an election year, I'll take that all day long.

在選舉年，我會整天都這樣。

What is the revenue split between industrial, municipal and the industrial segments?

工業、市政和工業部門之間的收入分配是多少？

Okay.

好的。

I anticipated you might ask me that.

我預料到你會問我這個問題。

So this time for a change, I'm actually prepared for that, if you give me just a second.

所以這次的改變，如果你給我一點時間，我其實已經準備好了。

Let's see, I can give it to you on a corporate level, let's do it that way.

讓我們看看，我可以在公司層面上給你，讓我們這樣做。

That's probably better.

那可能更好。

When you look at the revenue of the company through the first half of this year, approximately 12% is from snow removal, approximately 14% is from sweepers and safety equipment and approximately 22% or thereabouts from vacuum trucks.

如果你看看公司今年上半年的收入，大約12%來自除雪，大約14%來自掃地機和安全設備，大約22%左右來自吸塵車。

And please don't press me to go -- my General Counsel just give me a cross-eyed look already.

請不要催促我離開──我的總法律顧問已經用鬥雞眼看了我一眼。

Okay.

好的。

Thanks.

謝謝。

I'll leave it at that.

我就這樣吧。

And at this time, we are showing no further questioners in the queue, and this does conclude our question-and-answer session.

此時，我們在隊列中沒有顯示更多提問者，這確實結束了我們的問答環節。

I would now like to turn the conference over to the management team for any closing remarks.

我現在想將會議轉交給管理團隊進行總結發言。

Okay.

好的。

Thank you, operator.

謝謝你，接線生。

Before closing the call today, I'd like to express my congratulations and deep gratitude to Mike Haberman, Executive Vice President of the Industrial Equipment Division, who retires this month after more than 37-years of exemplary service with our company.

在今天結束通話之前，我謹向工業設備部門執行副總裁 Mike Haberman 表示祝賀和深切謝意，他在為我們公司提供了超過 37 年的模範服務後於本月退休。

Mike is a very good friend and an exceptional business executive who navigated his division through several very challenging years during and immediately after the pandemic and all of the supply chain challenges that followed.

麥克是一位非常好的朋友，也是一位傑出的業務主管，他帶領他的部門度過了大流行期間和之後的幾年非常具有挑戰性的幾年以及隨之而來的所有供應鏈挑戰。

I want to wish him a very well-deserved long, healthy and happy retirement.

我祝他當之無愧地享有長久、健康和幸福的退休生活。

Mike is being succeeded by another extremely capable leader, Mr. Kevin Thomas, who has most recently been leading the Industrial Equipment Division's Excavator and Vacuum Truck Group, where he's produced outstanding results.

接替麥克的是另一位非常有能力的領導者凱文托馬斯先生，他最近一直領導工業設備部門的挖土機和真空卡車集團，並取得了出色的業績。

We wish Kevin many years of continued success in this expanded leadership role.

我們祝福凱文在這擴大的領導角色中繼續取得成功。

Thank you for joining us today.

感謝您今天加入我們。

We look forward to speaking with you on our third quarter conference call in November 2024.

我們期待在 2024 年 11 月舉行的第三季電話會議上與您交談。

The conference has now concluded.

會議現已結束。

Thank you for attending today's presentation, and you may now disconnect.

感謝您參加今天的演示，您現在可以斷開連接了。