Ampco-Pittsburgh Corp (AP) 2019 Q4 法說會逐字稿

Good morning, and welcome to the Ampco-Pittsburgh Fourth Quarter and Full Year 2019 Earnings Results Conference Call. (Operator Instructions) Please note, this event is being recorded.

早安，歡迎參加 Ampco-Pittsburgh 2019 年第四季暨全年財報結果電話會議。(操作員指示) 請注意，本活動將被錄音。

I would now like to turn the conference over to Melanie Sprowson, Director of Investor Relations. Please go ahead.

現在我想將會議交給投資人關係總監 Melanie Sprowson。請開始。

Thank you, Andrea, and good morning to everyone joining us on today's fourth quarter and full year 2019 conference call. I'm joined today by Brett McBrayer, our Chief Executive Officer; and Mike McAuley, Senior Vice President, Chief Financial Officer and Treasurer. Also joining us on the call today are Sam Lyon, President of Union Electric Steel Corporation; and Terry Kenny, President of Air and Liquid Systems Corporation.

謝謝你，Andrea，也向今天加入我們 2019 年第四季暨全年電話會議的各位道早安。今天與我一同出席的有我們的執行長 Brett McBrayer，以及資深副總裁、財務長兼司庫 Mike McAuley。同時加入電話會議的還有 Union Electric Steel Corporation 總裁 Sam Lyon，以及 Air and Liquid Systems Corporation 總裁 Terry Kenny。

Before we begin, I would like to remind everyone that participants on this call may make statements or comments that are forward-looking and may include financial projections or other statements of the corporation's plans, objectives, expectations or intentions. These matters involve certain risks and uncertainties, many of which are outside of the corporation's control. The corporation's actual results may differ significantly from those projected or suggested in any forward-looking statement due to a variety of factors, including those discussed in the corporation's most recently filed Form 10-K and subsequent filings with the Securities and Exchange Commission. We do not undertake any obligation to update or otherwise release publicly any revision to our forward-looking statements.

在開始之前，我想提醒各位，本次電話會議中的與會者可能會發表或評論前瞻性陳述，並可能包含財務預測或公司計畫、目標、預期或意圖的其他陳述。這些事項涉及若干風險與不確定性，其中許多超出公司控制範圍。由於多種因素（包括公司最近提交的 Form 10-K 以及其後向美國證券交易委員會提交的文件中所討論者），公司的實際結果可能與任何前瞻性陳述中所預測或暗示者有重大差異。我們不承擔更新或以其他方式公開發布對前瞻性陳述之任何修訂的義務。

A replay of this call will be posted on our website later today and remain available for 2 weeks following the conclusion of the call. To access the earnings release or the webcast replay, please consult the Investors section of our website at ampcopgh.com.

本次電話會議的重播將於今日稍晚發布於我們的網站，並在會議結束後保留 2 週供查閱。如需取得財報新聞稿或網路直播重播，請至 ampcopgh.com 網站的「投資人」專區查詢。

With that, I'll turn the call over to Brett McBrayer, Ampco-Pittsburgh CEO.

接下來，我將把電話會議交給 Ampco-Pittsburgh 執行長 Brett McBrayer。

Thank you, Melanie. Good morning, and welcome to our call. First, let me begin with a note on environment, health and safety. We have an unwavering priority to protect the health and safety of our employees as well as ensure we protect the environment and the communities where we operate. Although we are not pleased with our safety performance to date, I am encouraged by the actions we are taking to drive improvements. Across our businesses, we have increased safety observations, leadership walks and fatality prevention assessments to ensure we safeguard the well-being of our employees globally.

謝謝你，Melanie。早安，歡迎參加本次電話會議。首先，我先就環境、健康與安全（EHS）做一點說明。保護員工的健康與安全，以及確保我們保護環境與營運所在地社區，是我們堅定不移的首要任務。雖然我們對目前為止的安全表現並不滿意，但我對我們正在採取的推動改善行動感到鼓舞。在各項業務中，我們增加了安全觀察、主管巡視與防止致命事故評估，以確保我們在全球範圍內守護員工福祉。

From an environmental perspective, I am proud to report that the corporation operated our facilities incident-free.

從環境面來看，我很自豪地報告，公司各項設施在無事故的情況下運作。

We can summarize 2019 as a year of execution. I'm excited about the work accomplished as we took targeted and decisive actions to improve our performance. Our focus has been on reducing complexity in our manufacturing processes, implementing operational improvements and rightsizing the business. Defining our core businesses and required capabilities, we continue to divest noncore and excess assets. These divestitures began with Vertical Seal, our specialized parts and service provider to North American rolling mills during the second half of 2018.

我們可以將 2019 年總結為「執行的一年」。我對我們所完成的工作感到振奮，因為我們採取了聚焦且果斷的行動來改善績效。我們的重點在於降低製造流程的複雜度、推動營運改善並使業務規模適當化（rightsizing）。在界定核心業務與所需能力後，我們持續處分非核心與多餘資產。這些處分始於 2018 年下半年出售 Vertical Seal；該公司為北美軋鋼廠提供專業零件與服務。

In the third quarter of 2019, we completed the sale of our North American cast roll operation in Avonmore, Pennsylvania. During the same period, we also completed the sale of our Canadian specialty steel business, ASW Steel. The divestitures of these assets significantly improved our cost structure without compromising our ability to serve current and future customers in our Forged and Cast Engineered Products segment and provided immediate positive improvement in operating results for our company.

在 2019 年第三季，我們完成出售位於賓夕法尼亞州 Avonmore 的北美鑄造軋輥業務。同一期間，我們也完成出售加拿大特殊鋼業務 ASW Steel。這些資產處分在不影響我們於「鍛造與鑄造工程產品」事業部門服務現有與未來客戶能力的前提下，顯著改善了成本結構，並為公司營運成果帶來立即且正向的改善。

I'm excited to announce that we are now seeing the benefit to our P&L with a return to profitability in the fourth quarter. Our performance improvement actions for our core assets began in our U.S. forging facilities during the first half of 2019, where we focused on lowering operating and overhead costs and improved efficiencies. Once we confirmed we had systems in place to sustain and improve our U.S. forging businesses, we quickly moved our efforts to our European cash roll facilities, where we launched restructuring initiatives during the second half of 2019. These efforts also focused on lowering our cost structure while improving efficiencies. Although these initiatives were launched during the second half of the year, we have only begun to see the improvements in the fourth quarter. The full impact of these actions will be realized in 2020.

我很高興宣布，我們現在已在損益表（P&L）上看到效益，第四季恢復獲利。我們針對核心資產的績效改善行動，於 2019 年上半年自美國鍛造廠開始，重點在於降低營運與間接費用並提升效率。在確認我們已建立可維持並改善美國鍛造業務的系統後，我們迅速將工作重心轉向歐洲鑄輥設施，並於 2019 年下半年啟動重整措施。這些努力同樣聚焦於在提升效率的同時降低成本結構。儘管這些措施於下半年啟動，我們直到第四季才開始看到改善。這些行動的完整影響將在 2020 年顯現。

I will now turn the call over to Sam Lyon, Union Electric Steel President, who will discuss in more detail some of the significant accomplishments of last year as well as some of the challenges we faced in the Forged and Cast Engineered Products segment. Sam?

接下來我將把電話會議交給 Union Electric Steel 總裁 Sam Lyon，他將更詳細說明去年一些重要成果，以及我們在「鍛造與鑄造工程產品」事業部門所面臨的部分挑戰。Sam？

Thanks, Brett. In the fourth quarter, we've continued our focus on safety, cost reductions in the U.S. and Europe and restructuring in the U.K. and Sweden. Notably, our European operations turned the corner and delivered significant improvement -- improved financial performance in Q4 of 2019. This improvement, along with the continued strong performance from the U.S. operations allowed the segment to deliver an income from continuing operations of $4.5 million in the fourth quarter. And if we exclude the $10.1 million impairment charge associated with the sale of the Avonmore facility, $4 million for the year versus a Q4 loss of $5.2 million and a full year loss of $6.6 million in the prior year on the same basis. As Brett stated, from a safety perspective, we have focused on the highest-risk tasks. We increased the focused safety observations and floor leadership box. The severity of the injuries and near misses were reduced as our efforts around mobile equipment and crane safety are paying off. A bright spot was the U.S. operations in the second half of the year where our lost time incident rate was 0. Also, our Slovenia, Austintown and Erie sites went recordable free for all of 2019.

謝謝，Brett。在第四季，我們持續聚焦於安全、美國與歐洲的成本降低，以及英國與瑞典的重整。值得注意的是，我們的歐洲營運已扭轉局勢，並在 2019 年第四季交出顯著改善——財務表現提升。這項改善，加上美國營運持續強勁的表現，使該事業部門在第四季的持續營業利益達 450 萬美元。若排除與出售 Avonmore 廠相關的 1,010 萬美元減損費用，則全年為 400 萬美元；相較之下，在相同基礎下，前一年度第四季為虧損 520 萬美元，全年為虧損 660 萬美元。如 Brett 所述，就安全面而言，我們聚焦於最高風險的作業。我們增加了聚焦式安全觀察與現場主管巡查（floor leadership box）。隨著我們在移動式設備與起重機安全方面的努力開始見效，傷害與未遂事件的嚴重程度已降低。一個亮點是美國營運在下半年，其損失工時事故率為 0。此外，我們的斯洛維尼亞、Austintown 與 Erie 廠區在 2019 年全年皆無可記錄事故（recordable free）。

We had slightly lower sales in the segment when compared to Q4 of last year due to the drop in nonroll revenue driven by the downturn in the oil and gas industry. This was partially offset by an increase in roll volume with a stronger mix. Despite this, as stated earlier, the segment was able to deliver a significant improvement in income from continuing operations when compared to the same quarter of 2018.

與去年第四季相比，該事業部門銷售額略為下降，原因是受油氣產業景氣下行影響，非軋輥（nonroll）營收下滑。此影響部分被軋輥出貨量增加且產品組合更佳所抵銷。儘管如此，如先前所述，與 2018 年同季相比，該事業部門仍能在持續營業利益方面交出顯著改善。

In the quarter, we did see improved order activity from nonroll non-oil and gas customers, which is a focus of ours. For example, we expect sales from 2 of our larger customers that supply to the tooling industry to increase from $1.7 million in 2019 to approximately $5 million this year, which is in line with our strategy. Our investment in our sales team are delivering results.

在本季，我們確實看到來自非軋輥、非油氣客戶的訂單活動改善，這也是我們的重點。例如，我們預期兩家向工具（tooling）產業供貨的較大型客戶，其銷售額將由 2019 年的 170 萬美元增加至今年約 500 萬美元，這與我們的策略一致。我們對銷售團隊的投資正在帶來成果。

With the sale of Avonmore and ASW behind us in Q3, we were able to sharpen our focus on the existing operations. We continue to see opportunities in the U.S. operations. In Q4, we had manufacturing cost savings of $600,000 with full year-over-year savings of $2 million. The majority of our European restructuring impacts will be realized in 2020, starting in Q2, as Brett stated earlier. This restructuring savings, combined with our efforts on raw materials and efficiencies are expected to deliver $3 million to $4 million in annualized savings, which is consistent with my statement on the last call.

隨著我們在第三季完成出售 Avonmore 與 ASW，我們得以更聚焦於現有營運。我們持續在美國營運中看到機會。在第四季，我們實現了 60 萬美元的製造成本節省，全年同比節省達 200 萬美元。如 Brett 先前所述，我們歐洲重整的大部分影響將於 2020 年自第二季起逐步體現。此重整節省，加上我們在原物料與效率方面的努力，預期可帶來每年年化 300 萬至 400 萬美元的節省，與我在上次電話會議中的說法一致。

From a sales and backlog perspective, we see some uncertainty in the market, which is not unexpected due to the coronavirus. Our customers are reporting improved pricing and order books but are cautious with the capital spend. Our segment backlog at December 31, 2019, of $271 million was down 9% year-over-year due to the cyclically lower frac block demand and because several of our largest steel customers have not finished their order book allocations for 2021, which typically would already be in our backlog. We will be receiving these orders in the coming weeks. Our actions to significantly change our cost profile through the entire business will allow us to better manage through any market uncertainty.

從銷售與在手訂單（backlog）的角度來看，我們看到市場存在一些不確定性，考量到新冠病毒，這並不令人意外。我們的客戶回報價格與訂單簿有所改善，但在資本支出方面仍保持審慎。截至 2019 年 12 月 31 日，我們事業部在手訂單為 2.71 億美元，因壓裂閥塊（frac block）需求處於景氣循環低點，以及我們數家最大鋼鐵客戶尚未完成 2021 年訂單簿配額分配（通常此時已會反映在我們的在手訂單中），因此同比下降 9%。我們將在未來幾週內收到這些訂單。我們為在整個企業中大幅改變成本結構所採取的行動，將使我們能更好地因應任何市場不確定性。

Thanks, Sam. No area of our business was immune to our change efforts, the Air and Liquid Processing segment targeted key areas of their businesses for improvement in 2019 as well. In these businesses, the traditional product flow through our factories was redesigned to drive increased productivity improved material utilization and as a result, improved profitability.

謝謝你，Sam。我們業務的任何領域都無法置身於變革努力之外；空氣與液體處理事業部在 2019 年也針對其業務的關鍵領域進行改善。在這些業務中，我們重新設計了產品在工廠中的傳統流程，以提升生產力、改善材料利用率，並因此提升獲利能力。

I will now turn the call over to Terry Kenney, Air and Liquid Processing segment President. Terry?

接下來我把電話交給空氣與液體處理事業部總裁 Terry Kenney。Terry？

Thank you, Brett, and good morning. Safety continues to be one of our major focuses. The Air and Liquid Processing segment ended the year with a 60% reduction in OSHA recordable accidents when compared to the prior year. In addition, I am pleased to say that the segment did not have any lost time injuries in 2019. Each and every employee is responsible for this improvement and everyone's commitment to watch out for each other is the key to our success.

謝謝你，Brett，大家早安。安全仍然是我們的主要重點之一。空氣與液體處理事業部在年底時，OSHA 可記錄事故數較前一年下降 60%。此外，我很高興地表示，該事業部在 2019 年沒有任何損失工時傷害（lost time injuries）。每一位員工都對這項改善負有責任，而大家彼此照應的承諾是我們成功的關鍵。

Net sales for the Air and Liquid Processing segment for the fourth quarter ended December 31, 2019, increased 13% when compared to the prior year. This increase was led by improved sales of heat exchangers and custom air handling units. We built on the successes of our process improvement program during the fourth quarter, we continue to implement changes in our processes to increase productivity and improve material utilization. Fourth quarter operating income for the segment when compared to the prior year, excluding expenses related to asbestos reserve charges increased when compared to the prior year. This increase reflects the rise in net sales as a result -- the rise in net sales as well as the results of our cost savings efforts. The year-end backlog for the segment approximated $50.6 million compared to $44.4 million at December 31, 2018.

截至 2019 年 12 月 31 日止第四季，空氣與液體處理事業部的淨銷售額較前一年增加 13%。此增長主要由熱交換器與客製化空氣處理機組銷售改善所帶動。我們在第四季延續流程改善計畫的成果，持續推動流程變更，以提升生產力並改善材料利用率。該事業部第四季營業利益（與前一年相比），若排除與石棉準備金提列相關的費用，較前一年增加。此增長反映淨銷售額上升，以及我們成本節省努力的成果。該事業部年末在手訂單約為 5,060 萬美元，較 2018 年 12 月 31 日的 4,440 萬美元增加。

Our strategic planning has focused our efforts on key markets, which has proven to be successful. We are building on our successes and look forward to continuing growth.

我們的策略規劃已將努力聚焦於關鍵市場，並證明是成功的。我們將在既有成果上持續精進，並期待延續成長。

Thank you, Terry. With that, I'd like to hand the call over to our CFO, Mike McAuley, to review our financial results in more detail. Mike?

謝謝你，Terry。接下來，我想把電話交給我們的財務長 Mike McAuley，更詳細地檢視我們的財務結果。Mike？

Thank you, Brett, and good morning to everyone listening on the call today. My commentary includes the use of certain non-GAAP financial measures today. I refer you to our disclosures regarding non-GAAP financial measures and the related non-GAAP financial measures reconciliation schedule included in our Q4 2019 earnings release issued yesterday evening.

謝謝你，Brett，也向今天參與電話會議的各位道早安。我今天的說明將包含使用若干非 GAAP 財務衡量指標。請參閱我們對非 GAAP 財務衡量指標的揭露，以及相關的非 GAAP 財務衡量指標調節表（reconciliation schedule），其已包含於我們昨晚發布的 2019 年第四季財報新聞稿中。

I will focus my discussion on our Q4 2019 financial results. A discussion of our full year results is included in the earnings release. As Brett indicated, Q4 2019 marked a return to profitability for Ampco-Pittsburgh. This was the first time in 16 quarters, dating back to Q4 of 2015 that the corporation reported a positive income from continuing operations. Ampco's net sales from continuing operations for the fourth quarter of 2019 were $97 million. This compares to net sales from continuing operations for the fourth quarter of 2018 of $95.8 million. Net sales in the Forged and Cast Engineered Products segment declined approximately 2% compared to the prior year quarter as weaker forged engineered products sales to the oil and gas industry outweighed stronger sales of mill rolls.

我將把討論重點放在我們 2019 年第四季的財務結果。全年結果的討論已包含在財報新聞稿中。如 Brett 所指出，2019 年第四季標誌著 Ampco-Pittsburgh 重返獲利。這是自 2015 年第四季以來、連續 16 個季度中，公司首次報告持續營業單位（continuing operations）呈現正的收益。Ampco 2019 年第四季持續營業單位的淨銷售額為 9,700 萬美元。相較之下，2018 年第四季持續營業單位的淨銷售額為 9,580 萬美元。鍛造與鑄造工程產品事業部的淨銷售額較前一年同期約下降 2%，原因是對油氣產業的鍛造工程產品銷售走弱，抵銷了軋輥（mill rolls）銷售走強的影響。

Net sales for the Air and Liquid Processing segment for the fourth quarter of 2019 increased approximately 13% compared to the prior year period, driven primarily by higher sales of heat exchange coils. I'll cover more segment level details momentarily.

2019 年第四季空氣與液體處理事業部的淨銷售額較前一年同期約增加 13%，主要由熱交換盤管（heat exchange coils）銷售增加所帶動。我稍後會再補充更多事業部層級的細節。

Gross profit as a percentage of net sales was 21.7% for the fourth quarter of 2019 versus 13% for the fourth quarter of 2018. The improvement is primarily attributable to the Forged and Cast Engineered Products segment, which is benefiting principally from a lower cost structure due to the sale of the Avonmore facility at the end of September, higher sales of mill rolls and improved manufacturing and operating efficiencies for the domestic forged operations, offset by lower sales of Forged and Cast Engineered Products to the oil and gas industry. Additionally, the Forged and Cast Engineered Products segment received business interruption insurance proceeds of $1.8 million in the fourth quarter of 2019 for an equipment outage that occurred in 2018. These insurance proceeds were recorded as a reduction to cost of goods sold in the current quarter.

2019 年第四季毛利率為淨銷售額的 21.7%，相較 2018 年第四季的 13%。此改善主要歸因於鍛造與鑄造工程產品事業部：該事業部主要受惠於較低的成本結構（源自 9 月底出售 Avonmore 廠）、軋輥銷售增加，以及國內鍛造業務製造與營運效率提升；但部分被對油氣產業之鍛造與鑄造工程產品銷售下降所抵銷。此外，鍛造與鑄造工程產品事業部在 2019 年第四季收到 180 萬美元的營業中斷保險理賠款，係針對 2018 年發生的一次設備停機事件。該等保險理賠款於本季以銷貨成本的減項入帳。

For the Air and Liquid Processing segment, gross profit increased slightly, benefiting from higher sales contribution and cost efficiencies.

就空氣與液體處理事業部而言，毛利小幅增加，受惠於較高的銷售貢獻與成本效率。

Selling and administrative expenses of $13.5 million or 13.9% of net sales for the fourth quarter of 2019 were down compared to $14.9 million or 15.6% of net sales in the fourth quarter of 2018. We were able to deliver approximately a 10% year-over-year reduction in SG&A expense for the quarter, due in part to our cost reduction enforced actions earlier in the year, lower professional fees as well as lower volume-driven commissions expense.

2019 年第四季銷售與管理費用為 1,350 萬美元，占淨銷售額 13.9%，較 2018 年第四季的 1,490 萬美元（占淨銷售額 15.6%）下降。本季我們實現了約 10% 的 SG&A 費用同比下降，部分原因是我們在年初推動並落實的成本削減行動、專業服務費降低，以及隨銷量變動的佣金費用下降。

Depreciation and amortization expense of $4.6 million for the fourth quarter of 2019 was down compared to $5 million for the fourth quarter of 2018, principally due to divestitures.

2019 年第四季折舊與攤銷費用為 460 萬美元，較 2018 年第四季的 500 萬美元下降，主要由於資產處分（divestitures）。

Income from continuing operations on an as-reported GAAP basis for the fourth quarter of 2019 was $3 million, including the $1.8 million benefit for business interruption proceeds offset by $0.7 million of restructuring related costs. This compares to a loss from continuing operations in the prior year of $40.1 million, which included an asbestos-related charge of $32.9 million, a similar level of restructuring-related costs and approximately $3.7 million in excess costs of the Avonmore facility now divested.

2019 年第四季按 GAAP 口徑（as-reported）之持續營業單位利益為 300 萬美元，其中包含 180 萬美元的營業中斷理賠款利益，並由 70 萬美元的重整相關成本所抵銷。相較之下，前一年持續營業單位虧損為 4,010 萬美元，其中包含 3,290 萬美元的石棉相關費用、類似水準的重整相關成本，以及約 370 萬美元（現已處分之）Avonmore 廠的超額成本。

Excluding the unusual items, as defined in the non-GAAP financial measures reconciliation schedule included with our earnings release, non-GAAP adjusted income from continuing operations for the fourth quarter of 2019 was approximately $1.9 million. This reflects an improvement of approximately $4.8 million compared to the prior year quarter on the same non-GAAP basis. The improvement is principally attributable to higher sales of mill rolls, improved manufacturing and operating efficiencies for the domestic forged operations, partially offset by the impact of lower forged engineered product sales to the oil and gas industry.

扣除非常項目（如我們隨同盈餘發布所附之非 GAAP 財務衡量指標調節表中所定義），2019 年第四季持續營運之非 GAAP 調整後收益約為 190 萬美元。以相同的非 GAAP 基礎計算，較去年同期約改善 480 萬美元。此改善主要歸因於軋機輥銷售增加、國內鍛造業務製造與營運效率提升，但部分被對油氣產業之鍛造工程產品銷售下滑的影響所抵銷。

Other income expense net improved for the fourth quarter of 2019 when compared to the prior year quarter, due primarily to foreign exchange gains this year versus losses last year as well as higher pension income.

2019 年第四季其他收益（費用）淨額較去年同期改善，主要因今年有外匯收益而去年為外匯損失，且退休金收益較高。

At the bottom line, the corporation reported a GAAP net income attributable to Ampco-Pittsburgh of $3.1 million or $0.24 per common share for the fourth quarter of 2019 compared to a net loss of $60.2 million or $4.82 per common share for the fourth quarter of 2018, which included an asbestos-related charge of $32.9 million, or approximately $2.63 per share and a net loss from discontinued operations of $18.7 million or $1.49 per share.

就最終損益而言，公司於 2019 年第四季報告歸屬於 Ampco-Pittsburgh 的 GAAP 淨利為 310 萬美元，或每股普通股 0.24 美元；相較之下，2018 年第四季為淨損 6,020 萬美元，或每股普通股 4.82 美元，其中包含 3,290 萬美元（約每股 2.63 美元）的石棉相關費用，以及停業部門淨損 1,870 萬美元（每股 1.49 美元）。

Here's some detail on our business segment results. In the Forged and Cast Engineered Products segment, Q4 2019 net sales of $74.3 million declined approximately 2% versus prior year as weaker forged and engineered product sales to the oil and gas industry, outweighed stronger sales of mill rolls. Segment's operating results improved from a year ago by $9.7 million. This was primarily due to the elimination of excess costs associated with the Avonmore cast roll facility, which was divested in Q3 2019. Higher sales of mill rolls, improved manufacturing and operating efficiencies for the domestic forged operations and $1.8 million -- and the $1.8 million benefit for the business interruption insurance proceeds in the current quarter.

以下為各業務部門業績的部分細節。在「鍛造與鑄造工程產品」部門，2019 年第四季淨銷售額為 7,430 萬美元，較去年同期約下降 2%，原因是對油氣產業之鍛造與工程產品銷售疲弱，超過了軋機輥銷售走強的貢獻。該部門營運成果較去年改善 970 萬美元。這主要是因為與 Avonmore 鑄輥廠相關的超額成本已被消除；該廠已於 2019 年第三季出售。此外，軋機輥銷售增加、國內鍛造業務製造與營運效率提升，以及本季認列之營業中斷保險理賠款帶來 180 萬美元的效益。

Net sales of $22.7 million for the Air and Liquid Processing segment in the fourth quarter of 2019 improved by approximately 13% compared to prior year. Higher sales of heat exchange coils was the primary driver, although sales of air handling units and centrifical pumps increased modestly as well. The segment's operating results improved significantly for the fourth quarter of 2019 compared to prior year, given the $32.9 million asbestos-related charge recorded in Q4 2018.

2019 年第四季「空氣與液體處理」部門淨銷售額為 2,270 萬美元，較去年同期約成長 13%。熱交換盤管銷售增加為主要驅動因素，空氣處理機組與離心泵銷售亦小幅增加。該部門 2019 年第四季營運成果較去年同期顯著改善，主要因 2018 年第四季曾認列 3,290 萬美元的石棉相關費用。

Underlying operating results improved from the higher sales contribution, cost reductions and material utilization improvements. Backlog at December 31, 2019, approximated $321 million, a decrease from the $343 million at December 31, 2018. The decrease reflects sales outpacing order intake for mill rolls and lower demand for forged engineered products, primarily due to a retraction in the frac block market. But as Sam indicated earlier, the reduction in backlog for mill rolls is not a reflection of any loss of market share, but rather an adjustment in order patterns for several of our larger customers. Backlog for air handling units improved due to an increase in business activity. Backlog for centrifical pumps improved due to higher orders of pumps from U.S. Navy shipbuilders. And backlog for heat exchange coils decreased slightly due to lower business activity in the industrial OEM market.

在更具代表性的層面，營運成果因銷售貢獻提高、成本降低及材料使用率改善而提升。截至 2019 年 12 月 31 日，未交貨訂單（backlog）約為 3.21 億美元，較 2018 年 12 月 31 日的 3.43 億美元下降。此下降反映軋機輥出貨（銷售）超過接單，以及鍛造工程產品需求降低，主要因壓裂閥體（frac block）市場回縮。但如 Sam 先前所述，軋機輥未交貨訂單的減少並非反映市占率流失，而是我們幾家較大型客戶的下單模式調整。空氣處理機組的未交貨訂單因業務活動增加而改善。離心泵的未交貨訂單因美國海軍造船廠泵浦訂單增加而改善。熱交換盤管的未交貨訂單則因工業 OEM 市場業務活動較低而小幅下降。

Next, here are a few balance sheet and cash-related items for continuing operations. Accounts receivable of $81.8 million at December 31, 2019, increased by $12.3 million compared to December 31, 2018, primarily attributable to improved sales in the latter part of 2019 versus 2018 customer mix and slower collections.

接下來是持續營運的幾項資產負債表與現金相關項目。截至 2019 年 12 月 31 日，應收帳款為 8,180 萬美元，較 2018 年 12 月 31 日增加 1,230 萬美元，主要歸因於 2019 年後期銷售改善、相較 2018 年的客戶組合差異，以及收款速度較慢。

Inventories of $82.3 million at December 31, 2019, declined $11.9 million compared to December 31, 2018, and primarily due to higher shipments in late 2019 versus 2018, lower cost of raw materials in 2019 versus 2018. Improved inventory utilization and inventory optimization benefits associated with the exit from the Avonmore Castrol finishing operations completed earlier in 2019.

截至 2019 年 12 月 31 日，存貨為 8,230 萬美元，較 2018 年 12 月 31 日減少 1,190 萬美元，主要因 2019 年末出貨量較 2018 年更高，以及 2019 年原材料成本較 2018 年更低。另包括與 2019 年較早完成退出 Avonmore Castrol 精整作業相關之存貨使用改善與存貨最佳化效益。

Accounts payable of $33.3 million at December 31, 2019, decreased by $5.6 million compared to December 31, 2018, which is linked closely with the reduction in inventories.

截至 2019 年 12 月 31 日，應付帳款為 3,330 萬美元，較 2018 年 12 月 31 日減少 560 萬美元，與存貨下降密切相關。

Capital expenditures for the fourth quarter of 2019 were $3.8 million and $11 million even for the full year 2019 for continuing operations.

2019 年第四季持續營運的資本支出為 380 萬美元；2019 年全年持續營運的資本支出為 1,100 萬美元。

Cash and cash equivalents for continuing operations of $7 million at December 31, 2019, decreased compared to the December 31, 2018, balance of $19.7 million.

截至 2019 年 12 月 31 日，持續營運之現金及約當現金為 700 萬美元，較 2018 年 12 月 31 日的 1,970 萬美元下降。

As indicated on previous calls, our domestic receipts are now being swept daily against the credit line to lower our borrowings. As a result, we are maintaining minimal domestic cash and the reported cash balance reflects primarily foreign cash.

如先前電話會議所述，我們的國內收款目前每日會被掃入（swept）信用額度，以降低借款餘額。因此，我們維持最低限度的國內現金，而所報告的現金餘額主要反映海外現金。

Drawings on the Ampco revolving credit facility were $34.3 million at December 31, 2019, which is down versus $38.4 million at September 30. The decrease in revolver borrowings compared to the December 31, 2018, balance of $14.3 million reflects the use of the credit facility as planned, to repay the promissory notes and interest, which will retire in the first quarter of 2019, offset in part by the benefit of the domestic cash sweep. In fact, total debt at December 31, 2019, of $70.9 million is down $6.8 million versus prior year.

截至 2019 年 12 月 31 日，Ampco 循環信用額度（revolving credit facility）動用金額為 3,430 萬美元，較 9 月 30 日的 3,840 萬美元下降。相較於 2018 年 12 月 31 日的 1,430 萬美元餘額，循環額度借款增加反映我們按計畫使用該信用額度以償還本票及利息；該等本票將於 2019 年第一季到期清償，並部分被國內現金掃入機制的效益所抵銷。事實上，截至 2019 年 12 月 31 日的總負債為 7,090 萬美元，較去年下降 680 萬美元。

At December 31, 2019, in addition to the cash balance, the corporation also has remaining availability on the revolver of approximately $27 million.

截至 2019 年 12 月 31 日，除現金餘額外，公司在循環額度上仍有約 2,700 萬美元的可用額度。

I will now turn the call back over to Brett for some closing remarks.

我現在把電話交回給 Brett，請他做一些結語。

Thank you, Mike. Throughout our change process, we faced many challenges, which only reinforce the need and pace of changes we made. Forged engineered products sales to the oil and gas industry, as we've noted earlier, were down significantly from the prior year as fracking activity declined in 2019. In addition, our roll customers faced lower order volumes as they stated that many of their customers have purchased beyond normal demand levels in 2018. High steel inventories in the General Motors strike resulted in reduced flat-rolled steel shipments in the second half of the year. Steel prices declined as end markets work through their inventories.

謝謝你，Mike。在我們的變革過程中，我們面臨許多挑戰，這些挑戰更凸顯我們所做變革的必要性與推進速度。如我們先前提及，對油氣產業的鍛造工程產品銷售較去年大幅下滑，因 2019 年壓裂活動減少。此外，我們的輥類客戶面臨較低的訂單量，因其表示其許多客戶在 2018 年的採購已超出正常需求水準。通用汽車罷工期間鋼材庫存偏高，導致下半年平軋鋼出貨量下降。隨著終端市場消化庫存，鋼價下跌。

Entering 2020, the initial insight from our customers indicate that steel markets in North America are recovering and that the market conditions for flat rolled steel have stabilized and are improving. From the work completed in 2019, we would expect Ampco-Pittsburgh to remain profitable under normal loads. Our continuing work in 2020 should further strengthen our expectations. The developing human impact as well as the market impact of COVID-19, however, is a variable that could alter our view and projections.

進入 2020 年，從客戶端得到的初步訊息顯示，北美鋼鐵市場正在復甦，平軋鋼的市場狀況已趨於穩定並正在改善。基於 2019 年已完成的工作，我們預期 Ampco-Pittsburgh 在正常產能負載下仍可維持獲利。我們在 2020 年持續推進的工作應可進一步強化此一預期。然而，COVID-19 對人員與市場的影響仍在發展中，這是一項可能改變我們觀點與預測的變數。

2019 was a year of significant progress for Ampco-Pittsburgh, where we followed through on our key priorities to strengthen our businesses. In addition to executing successfully against our strategic plan. We've built a strong foundation to support sustainable and profitable growth moving forward. We've entered 2020 a stronger and more streamlined company, and I'm proud of what our employees have achieved. We will continue to address additional opportunities in 2020 to further consolidate our manufacturing footprint and streamline our businesses.

2019 年對 Ampco-Pittsburgh 而言是取得重大進展的一年，我們依循關鍵優先事項，強化了各項業務。除了成功執行我們的策略計畫之外。我們也建立了堅實基礎，以支持未來可持續且具獲利性的成長。我們以更強健且更精簡的公司樣貌進入 2020 年，我為員工所達成的成果感到自豪。2020 年我們將持續把握更多機會，進一步整併製造據點並精簡業務。

In addition to realizing full year effects of our restructuring activities from 2019, we are targeting stronger operating cash generation and a reduction of 10% to 15% in corporate expenses for 2020, strengthening our ability to invest in capital improvements to increase productivity and improve margins.

除了實現 2019 年重整活動的全年效益外，我們也以 2020 年為目標，提升營運現金創造能力，並將公司層級費用降低 10% 至 15%，以強化我們投資資本改善的能力，進而提升生產力並改善利潤率。

In 2020, we will remain focused on cost reduction and rightsizing our assets and resources to align better with our corporate objectives. As we look back on an eventful year for Ampco-Pittsburgh. I'm confident we are on the right path for success, both now during uncertain times in our markets and more so in the future as we continue to execute our strategic plan.

2020 年，我們將持續聚焦於降低成本，並調整資產與資源規模，使其更符合公司的目標。回顧 Ampco-Pittsburgh 這充滿事件的一年。我有信心我們正走在正確的成功道路上——無論是當下市場充滿不確定性的時期，或是未來我們持續執行策略計畫之際。

On behalf of Ampco-Pittsburgh Corporation's leadership team, I want to thank our employees for their focus and commitment. The results of 2019 reflect the hard work and dedication of our employees around the globe.

我謹代表 Ampco-Pittsburgh Corporation 的領導團隊，感謝員工的專注與投入。2019 年的成果反映了全球各地員工的辛勤工作與奉獻。

At this time, we'll open the line for your questions.

現在，我們將開放電話線供各位提問。

(Operator Instructions) And our first question comes from Marco Rodriguez of Stonegate Capital Markets.

(接線員指示) 我們的第一個問題來自 Stonegate Capital Markets 的 Marco Rodriguez。

I apologize if you covered this, I was a little late on the call, but I was wondering if maybe you could talk a little bit more about your comments there you made in terms of COVID-19. And how that could potentially alter your projections, if perhaps you can just take us and walk us through how you are sort of thinking about your business in fiscal '20 from a base case scenario? And how COVID-19 could potentially impact those expectations?

如果你們已經提到過我先致歉，我稍晚才加入電話會議；但我想請你們再多談一些你們剛才關於 COVID-19 的評論。以及它可能如何改變你們的預測；若可以的話，能否帶我們走一遍你們在 2020 會計年度、以基準情境來看，是如何思考你們的業務？以及 COVID-19 可能如何影響這些預期？

Yes. This is Brett, Marco. Thanks for the question. As I mentioned, that based on the loads that we've typically seen such as loads in 2019, we expect our business to remain profitable. That's our expectation. COVID-19 is obviously a developing issue for all of us. We are still booking orders as we speak. Orders are continuing to come in. Some of our order patterns from our customers have changed, and really, prior to, I would say, the COVID-19 event. So it's not as a result of COVID-19. Some of our larger customers' allocations, as Sam mentioned, will come in the following weeks, and we'll get a better layout of what the load looks like for the year. But we have consciously been proactive about what do we need to do from a next-step perspective to ensure that we position this company for success. And so we have several identified actions that we will take based on what does or does not happen in the marketplace. We're obviously, at the same time, trying to invest in opportunities that will help us grow our top line significantly moving forward. And so we're not going to walk away from those opportunities while we are sorting out where the world is going through all of this. But I would say that I feel very confident in the team and the plans that we have in place, and I -- and we will respond quickly as we will need to if something more detrimental happens in the marketplace that will require a response from this group. So hopefully, that answered your question.

好的。Marco，我是 Brett。謝謝你的問題。如我提到的，基於我們通常看到的負荷量（例如 2019 年的負荷量），我們預期業務仍將維持獲利。這是我們的預期。COVID-19 顯然是我們所有人都在面對的發展中議題。我們此刻仍在接單。訂單仍持續進來。我們部分客戶的下單模式已經改變，而我認為其實是在——我會說——COVID-19 事件之前就已發生。因此並非 COVID-19 所致。如 Sam 所提到，我們一些較大型客戶的配額將在接下來幾週到位，屆時我們會更清楚今年的負荷量布局。但我們也有意識地主動思考，從下一步的角度來看，我們需要做什麼，才能確保公司處於成功的位置。因此，我們已辨識出數項行動，將依市場上發生或未發生的情況而採取。同時，我們也在嘗試投資一些機會，這些機會將在未來顯著推動我們的營收成長。因此，在我們釐清這一切之際，我們不會放棄那些機會。但我想說，我對團隊以及我們已建立的計畫非常有信心；而且如果市場出現更不利的情況、需要本團隊做出回應，我——以及我們——將會迅速回應。希望這回答了你的問題。

Absolutely, very helpful, very helpful. And then lastly here, you mentioned a focus on reducing expenses on an additional 10% to 15% in fiscal '20, I'm assuming compared to fiscal '19 expenses. Is that above and beyond the other expense reductions you've already guided to into fiscal '20? Or is that inclusive?

當然，非常有幫助，非常有幫助。最後一個問題：你提到在 2020 會計年度將額外聚焦把費用再降低 10% 到 15%，我假設是相較於 2019 會計年度的費用。這是超出你們已經對 2020 會計年度所指引的其他費用削減之外嗎？還是已包含在內？

Marco, it's Mike. The 10% to 15% is a reference to our expectation for 2020 corporate costs versus 2019 to give a little bit of indication of what we're -- we've done -- the things that we've done that we feel that we've -- are deliverable in 2020 from actions we've already taken. So that refers strictly to corporate costs. And I don't know if we've gotten into that before with the investor group that we disclosed that we have completed our 2020 planning, of course, and that's all part of that. But it's really a function of the actions that have been taken in the fourth quarter, and things will continue to -- that will continue to roll out in early 2020 that we think that's a good solid number to expect if you're modeling corporate cost for 2020. And anything else that would -- heard on this call would be like Sam's comments are additive to that.

Marco，我是 Mike。這個 10% 到 15% 是指我們對 2020 年公司層級成本相較 2019 年的預期，藉此提供一些指引，說明我們——我們已做——我們已做的事情，以及我們認為在 2020 年可交付的成果，這些都來自我們已採取的行動。所以這僅指公司層級成本。我不確定我們之前是否已向投資人團體談過：我們當然已完成 2020 年的規劃，而這也都是其中一部分。但這主要是第四季已採取行動的結果，並且在 2020 年初還會持續——將會持續推進；我們認為，如果你在建立 2020 年公司層級成本模型，這是一個相當扎實、可預期的數字。而在本次電話會議上聽到的其他內容——例如 Sam 的評論——則是在此基礎上的額外增量。

Got it. So just to make sure I understood you correctly. So that 10% to 15% reduction in corporate cost is above and beyond the cost savings that you've guided to with the Avonmore sale, the Phase I reduction, the European reduction adjustments, correct?

了解。所以我確認一下我是否理解正確。也就是說，公司層級成本降低 10% 到 15% 這件事，是在你們已指引的成本節省（包括 Avonmore 出售、第一階段縮減、歐洲縮減調整）之外，對嗎？

Correct. Correct. Yes.

對。對。是的。

Our next question comes from Justin Bergner of G.research.

我們的下一個問題來自 G.research 的 Justin Bergner。

A couple of clarifying questions. I think a number of the numbers came at me a bit quickly. But just to start with the last question. When you're referring to corporate costs, I mean, the number that we see in the P&L is sort of the reconciliation at the segment level, the other expense including corporate costs. How should we think about, sort of, the corporate cost number, sort of, in 2019 versus that line item in the P&L just to figure out what the 10% to 15% applies to in terms of the 2019 cost base?

有幾個釐清問題。我覺得有不少數字講得有點快。先從上一個問題開始。你們提到公司層級成本時，我的意思是，我們在損益表上看到的數字，某種程度上是以部門層級調節後的「其他費用（包含公司層級成本）」。我們應該如何理解 2019 年的公司層級成本數字，與損益表上那個科目之間的關係，以便判斷 10% 到 15% 是套用在 2019 年哪一個成本基礎上？

Yes. If you look -- if you go -- if you take our -- our 10-K will be coming out shortly. And as you point out, in that, it shows segment level details. And so it will show income loss from continuing operations for the Forged and Cast Engineered Products segment, for the Air and Liquid Processing segment, and then it will show a line for corporate costs. And then the total will add up to the corporation's total consolidated operating income or loss. That corporate cost line on that table is what we're talking about with respect to the 10% to 15%. And it is a piece of SG&A.

是的。如果你看——如果你去——我們的 10-K 很快就會發布。如你所指出，其中會呈現部門層級的明細。因此它會顯示「鍛造與鑄造工程產品」部門的持續營業單位營業利益或損失、「空氣與液體處理」部門的持續營業單位營業利益或損失，然後會有一行是公司層級成本。接著加總後會等於公司合併後的總營業利益或損失。我們所說的 10% 到 15% 指的就是該表格中的「公司層級成本」那一行。而它是 SG&A 的一部分。

Okay. Understood. So it's the entirety of the other expense, including corporate costs line. There's not like a portion of that is irrelevant for the purposes of this calculation?

好的。了解。所以是其他費用的全部內容，包括公司成本那一行。並不是說其中有一部分在這個計算目的下不相關？

Right. Right. Corporate costs. It's shown on the consolidated results of operations in the 10-K when you do the segment breakout, you'll see it there.

對。對。公司成本。當你在 10-K 的合併經營成果中做分部拆分時，你會在那裡看到。

Okay. Understood. And then just a couple of other clarifying questions. So the $600,000 in cost savings in Q4 and $2 million in 2019 was specific to the U.S. Forged and Cast Engineered Products business? And then the $3 million to $4 million of savings expected in 2020 is for the international or European operations?

好的。了解。接著再問幾個釐清問題。所以第四季的 60 萬美元成本節省，以及 2019 年的 200 萬美元，是針對美國的鍛造與鑄造工程產品（Forged and Cast Engineered Products）業務？那麼預期 2020 年可節省的 300 萬到 400 萬美元，是針對國際或歐洲營運？

Yes. That's correct.

是的。沒錯。

Okay. And then I think you said in the beginning of your comments that your income from continuing operations in Forged and Cast Engineered Products was $4.5 million in the fourth quarter when you adjust out some of the onetime expenses or was that on a reported GAAP basis?

好的。另外我想你在一開始的評論中提到，鍛造與鑄造工程產品的持續營業利益在第四季是 450 萬美元，這是把一些一次性費用調整掉之後的數字，還是以 GAAP 報表基礎呈報的？

For the Forged and Cast Engineered Products segment?

是指鍛造與鑄造工程產品分部嗎？

Yes.

是的。

It's as reported, $4.5 million.

是按呈報口徑，450 萬美元。

Okay. And then maybe just a big picture question to wrap up. How does the sort of global shift from blast furnace steel production to minimill steel production, either advantage or disadvantage your roll business, if at all?

好的。最後用一個宏觀問題作結。全球鋼鐵生產從高爐轉向小型鋼廠（minimill）的趨勢，對你們的轧輥（roll）業務有利或不利嗎？如果有的話。

Well, it really doesn't affect it other than the speed -- who we sell to and where the business is moving to. So as U.S. Steel, for example, was heavy in blast furnaces, and now they're changing that. And that's a big customer of ours. We'll continue to support them. But companies like Steel Dynamics and Nucor are growing. And we're in virtually all of those customers. So it really doesn't change things for us.

嗯，實際上除了速度——也就是我們賣給誰、以及業務往哪裡移動——之外，並不會影響。例如美國鋼鐵（U.S. Steel）過去高度依賴高爐，現在他們正在改變。而他們是我們的大客戶。我們會持續支持他們。但像 Steel Dynamics 和 Nucor 這些公司正在成長。而我們幾乎在所有這些客戶中都有供應。所以對我們來說其實不會改變什麼。

Okay. There's not like a different sort of amount of roll needed per tonne of steel depending upon whether you're looking at a blast furnace or minimill operation, just to clarify?

好的。只是想釐清一下：不會因為是高爐或小型鋼廠作業不同，而每生產一噸鋼所需要的轧輥數量不同，對嗎？

No, it doesn't. I mean there's been changes in the industry years ago where you cast a thinner slab, and so you need less hot rolls, which would be the cast side of our business, but that's occurred a long time ago.

不會。我的意思是，多年前產業確實有過變化，例如鑄更薄的板坯，因此需要較少的熱轧輥——那會影響我們業務中鑄造那一端——但那是很久以前就發生的事了。

Our next question comes from David Wright of Henry Investment Trust.

下一個問題來自 Henry Investment Trust 的 David Wright。

In your budget for the year, are you planning for any debt reduction?

在你們今年的預算中，有規劃任何減債嗎？

Well, in our -- I guess, I can give some indication. We're not giving full year earnings guidance, but we should see -- I think we're kind of -- I mean we should see debt levels kind of staying stable, David. I mean we're going to invest some more. And I mean that could put a little pressure on the borrowings. But when we look at our 2020 outlook, there's not a heavy uptick in debt.

嗯，就我們——我想我可以提供一些方向。我們不提供全年獲利指引，但我們應該會看到——我想我們的債務水位大致會維持穩定，David。我的意思是，我們會多投資一些。而這可能會讓借款稍微有點壓力。但當我們看 2020 年展望時，債務不會有明顯上升。

Nor a heavy downtick?

也不會明顯下降？

Right.

對。

Okay. Do you have the operating income in Q4 for Air and Liquid?

好的。你們有第四季 Air and Liquid 的營業利益嗎？

Yes. As reported, David, it's $2.6 million. And corporate costs were $4.1 million, as reported.

有。按呈報口徑，David，是 260 萬美元。公司成本按呈報口徑是 410 萬美元。

$4.4 million (sic) [$4.1 million]. Okay. And I want to ask about forged engineered products as a business. I mean, obviously, the oil and gas has gone way, way down, but it sounds like you have other customers and you're trying to get more customers referenced in the press release and also in Sam's remarks. Is this a discrete business unit?

440 萬美元（原文誤植）[410 萬美元]。好的。我想問鍛造工程產品這個業務。我的意思是，顯然油氣業務大幅下滑，但聽起來你們還有其他客戶，並且正如新聞稿以及 Sam 的談話所提到的，你們也在嘗試開發更多客戶。這是一個獨立的事業單位嗎？

No. It's all part of the same business. However, we have changed our sales force and hired people specific to that industry as opposed to trying to just sell Forged Engineered Cast Products, the nonroll business on the side and we actually hired some people that are from that world, and that's why I commented on, we're seeing some additional opportunities outside of oil and gas based on that.

不是。它都是同一個業務的一部分。不過，我們已經調整了銷售團隊，並聘用專門針對該產業的人員，而不是只是順帶銷售鍛造工程鑄造產品（Forged Engineered Cast Products）——也就是我們非轧輥（nonroll）的業務——我們實際上聘了一些來自那個領域的人，所以我才會提到，基於這點，我們在油氣以外看到一些額外機會。

And do you do that out of a particular facility?

那你們是在某個特定廠區做這件事嗎？

Our Burgettstown facility is where the majority of it is made if it's a stainless alloy, we buy them on the outside, but we still forge it in our Burgettstown facility. So it all comes out of there.

我們的 Burgettstown 廠是主要的生產地點；如果是不鏽鋼合金，我們會向外部採購，但仍會在 Burgettstown 廠進行鍛造。所以全部都從那裡出來。

Okay. All right. Well, you guys continue to do what you say you're going to do, and that's impressive.

好的。好。嗯，你們持續做到你們說要做的事，這很令人印象深刻。

Our next question is from [Greg Bennett], a private investor.

下一個問題來自私人投資人 [Greg Bennett]。

Thank you for the great quarter. In your -- for this year, are there cost -- additional restructuring costs that you expected? Maybe you've already mentioned that, but you mentioned in Europe, you expect $3 million to $4 million in annual savings. Is there a cost for that?

謝謝你們這麼棒的一季。就你們——今年而言，是否預期會有成本——額外的重整成本？也許你們已經提過，但你們提到在歐洲預期每年可節省 300 萬到 400 萬美元。那會有相對應的成本嗎？

There will be, Greg. In the first 2 quarters, we're doing some other things that will generate some, but it's going to be rather modest relative to what we've seen in 2019. But yes, there's a little more coming, but it'll be modest. It'll be relatively small.

會的，Greg。在前兩個季度，我們會做一些其他事情，會產生一些費用，但相較於我們在 2019 年看到的，會相當溫和。但沒錯，還會有一點，但會是溫和的。會相對較小。

Okay. And one final question. And you mentioned in the tooling industry that your sales had -- new sales, I guess, have gone from $1.7 million to $5 million. Could you give more information, more color on that? What industries are you targeting? And what's the size of those markets that -- if we were to look out in a year or 2 from now?

好的。最後一個問題。你提到在工具產業，你們的銷售——我想是新銷售——已從 170 萬美元增加到 500 萬美元。你能否提供更多資訊、更多細節說明？你們鎖定哪些產業？如果我們把時間拉到一兩年後，那些市場的規模大概有多大？

The size of market or the size of our portion?

你是指市場規模，還是我們所占的份額規模？

Your -- I guess, I'd say, you went from $1.7 million to $5 million, which sounds pretty -- well, it is impressive, percentage-wise. I'm just wondering how big of a -- where are you targeting? And what's the potential size for that?

你們的——我想我會說，你們從 170 萬美元到 500 萬美元，聽起來相當——嗯，確實很令人印象深刻，就百分比而言。我只是想知道你們鎖定的方向有多大——你們在瞄準哪裡？以及那個潛在規模有多大？

We would be an extremely small player at that size. So less than 5%, I would say. I don't know what the size of the market is, but I do know that in my past, I worked at Carpenter. We had a distribution facility that purchased $5 million, probably -- yes, $5 million a month of that kind of material. So that's just one customer. So there's a big opportunity for us there.

以那樣的規模來看，我們會是非常小的參與者。所以我會說不到 5%。我不知道市場規模是多少，但我知道我過去曾在 Carpenter 工作。我們有一個配送設施，每月採購 500 萬美元的那類材料，應該是——對，每月 500 萬美元。所以那只是一個客戶。因此對我們而言，那裡有很大的機會。

What is -- can you share with us what -- is there a certain industry that -- I'm not familiar with Carpenter that you're targeting.

是什麼——你能跟我們分享一下——是否有某個產業——我對你們鎖定的 Carpenter 不太熟悉。

It's like for plastic injection molding a lot of it or for forging tooling for dies. So when you forge a material, you have to have a certain material to press it with. So the dies are made from this kind of material, like an example would be H13. If you look that up, or plastic injection molding for automotive dashes and any plastics part that you'd make is kind of a mold material. The significance of why I bring it up is, we were primarily producing oil and gas-related things. And so this was a diversification away from that, or in addition, not away, but.

很多是用於塑膠射出成型，或是用於鍛造模具的工裝。所以當你鍛造材料時，你必須有某種材料來施壓。因此模具是用這類材料製成的，例如 H13 就是一個例子。你可以查一下；或者像汽車儀表板的塑膠射出成型，以及你會製作的任何塑膠零件，都屬於模具材料。我之所以提到這點的重要性在於，我們先前主要生產與油氣相關的產品。因此這是從那方面做多元化，或是作為補充，不是離開那個領域，但。

Our next question is a follow-up from David Wright of Henry Investment Trust.

我們的下一個問題是 Henry Investment Trust 的 David Wright 的追問。

Just going further on the forged engineered products, do they typically have a different margin profile than mill roles?

再深入一點談鍛造工程產品，它們通常會有不同於軋輥的毛利結構嗎？

It varies greatly. Right now in the short term, as we're growing that business, and we've been successful on the roll side with some mix changes and some pricing. It's the same or probably a little less at this time.

差異很大。就短期而言，隨著我們擴大那項業務，而且我們在軋輥端透過一些產品組合調整與定價已取得成效。目前它的水準相同或可能略低一些。

So is this useful in just trying to pick up some extra slack in capacity at the facility?

所以這是否有助於在該設施把一些閒置產能利用起來？

It's extremely useful for that. It's as we run more full in our Burgettstown facility, that certainly helps us with fixed cost absorption.

這對此非常有用。隨著我們在 Burgettstown 廠的稼動率更滿，這確實有助於固定成本吸收。

And are there any asset sales contemplated for the year?

今年是否有任何資產出售的規劃？

No, not at this time, David. This is Brett. We're continuing, though, to look at where -- as we continue to make improvements in the business, improving efficiencies, materialization, et cetera, it starts to create excess, if you will, capacity as we've created new capacities within our buildings. And so as we move down this path, our focus is to continue to shrink our footprint as the opportunities present themselves. But as we look at 2020 at this point in time, we are not targeting anything in particular from an asset sale perspective.

不，David，目前沒有。我是 Brett。不過我們會持續檢視——隨著我們持續改善業務、提升效率、實現效益等，當我們在廠房內建立新的產能時，就會產生某種程度的多餘（如果你願意這麼說）產能。因此在這條路上，我們的重點是隨著機會出現，持續縮小我們的占地規模。但就目前看 2020 年，我們在資產出售方面並沒有特別鎖定任何項目。

All right. So you like the footprint presently?

好。所以你們喜歡目前的占地規模？

Well, you can always be smaller. We can always -- I mean, as we're looking at investments in the business, too, David. There's -- we are utilizing assets that we've had for quite some time. And quite candidly, you've underutilized those assets for quite a long time. And so our focus has been, let's make sure we get our value out of the assets that exist. And then as we continue to improve how can we continue to significantly alter our cost structure moving forward with these improvements and make small changes in our asset structure to allow us to remove cost in the business, and that will continue to be a focus that we go through in our strategic plan. We have certain key opportunities laid out in front of us where we know we can go further. But we're going to go at a pace that is going to allow us to make sure we don't disrupt our customers and also make sure we don't negatively impact the improvements we've made. We've put a lot of focus on sustainability as we've made improvements in our business and making sure that I said earlier that with each change that we've taken. We've made sure that we have processes and systems in place to help us sustain those improvements. And so we do not want to move too fast where we disrupt, I guess, the new step we've taken up in the right direction.

嗯，你永遠可以更小。我們也可以——我是說，David，當我們也在評估對業務的投資時。我們正在使用一些我們持有相當長時間的資產。而且坦白說，你們長期以來一直沒有充分利用那些資產。因此我們的重點一直是：先確保把現有資產的價值發揮出來。接著，隨著我們持續改善，我們要如何透過這些改善，在未來持續大幅改變成本結構，並對資產結構做一些小幅調整，讓我們能在業務中移除成本；這也將會是我們在策略規劃中持續關注的重點。我們面前列出了幾個關鍵機會，我們知道還能做得更好。但我們會以一個能確保不干擾客戶、也確保不會對我們已取得的改善造成負面影響的速度來推進。在我們改善業務的過程中，我們非常重視可持續性，並確保——我先前也提到——每一次我們做出改變時。我們都確保有流程與系統到位，來幫助我們維持這些改善成果。因此我們不希望動作太快，以致於干擾——我想——我們朝正確方向邁出的新一步。

If we have another minute. On the last call, Sam had some comments about Europe getting better and wanting to do some work in Europe. And I don't know if you can tell us any more about how things are going in Europe presently. And if you can't, that's fine, but that would be my last question.

如果我們還有一分鐘。在上一次電話會議中，Sam 曾評論歐洲正在好轉，並希望在歐洲做一些工作。我不知道你是否能再多談一些目前歐洲的進展情況。如果不能也沒關係，但那會是我最後一個問題。

Yes. We've done a lot of work there in the last 6 months. As Mike was pointing out, and I stated, the -- all the work on the restructuring is completed. It's just the notification periods for people as to when they're actually going to exit the business. A lot of work was done on the raw material side, where we're aggressively looking at the charge materials. It's maybe roughly [and the] write-down is 1/3 or a little more of our costs. We have a huge opportunity there that we're exploiting. We had some quality issues in the last several years that have been resolved. So there's quite a lot of work done and in the fourth quarter results a portion of that benefit came from the U.K. and Sweden.

可以。過去 6 個月我們在那裡做了很多工作。正如 Mike 指出的、以及我所說的——所有重整相關的工作都已完成。現在只是人員的通知期，也就是他們實際離開公司的時間。在原材料端也做了大量工作，我們正積極檢視爐料（charge materials）。這部分大概——[以及]減記約占我們成本的 1/3 或更多一些。我們在那裡有很大的機會，正在加以利用。過去幾年我們有一些品質問題，已經解決。因此做了相當多的工作，而第四季的結果中，有一部分效益來自英國與瑞典。

(Operator Instructions)

（接線員指示）

This concludes our question-and-answer session. The conference has now also concluded.

以上為問答環節。本次電話會議也到此結束。

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

感謝您參加今天的簡報，您現在可以掛線。