Ampco-Pittsburgh Corp (AP) 2024 Q3 法說會逐字稿

Good day, and welcome to the Ampco-Pittsburgh Corporation Third Quarter 2024 Earnings Results Conference Call.

美好的一天，歡迎參加 Ampco-Pittsburgh Corporation 2024 年第三季獲利結果電話會議。

(Operator Instructions) After today's presentation, there will be an opportunity to ask questions.

（操作員說明）今天的演示結束後，將有機會提問。

(Operator Instructions)

（操作員說明）

Please note this event is being recorded.

請注意此事件正在被記錄。

I would now like to turn the conference over to Ms. Kim Knox, Corporate Secretary.

我現在將會議交給公司秘書 Kim Knox 女士。

Please go ahead, ma'am.

請繼續，女士。

Thank you, and good morning to everyone joining us on today's third quarter 2024 Conference Call.

謝謝大家，大家早安，參加今天的 2024 年第三季電話會議。

Joining me today are Brett McBrayer, our Chief Executive Officer; and Mike McAuley Senior Vice President and Chief Financial Officer and Treasurer.

今天加入我的是我們的執行長 Brett McBrayer；麥克‧麥考利 (Mike McAuley) 資深副總裁兼財務長兼財務主管。

Also joining us on the call today are Sam Lyon, President of Union Electric Steel Corporation; and Dave Anderson, President of Air & Liquid Systems Corporation.

今天加入我們電話會議的還有聯合電力鋼鐵公司總裁 Sam Lyon；戴夫‧安德森 (Dave Anderson)，空氣與液體系統公司總裁。

Before we begin, I would like to remind everyone that participants on this call may make statements or comments that are forward-looking include financial projections or other statements of the corporation's plans, objectives, expectations or intentions.

在開始之前，我想提醒大家，本次電話會議的參與者可能會發表前瞻性的聲明或評論，包括財務預測或公司計劃、目標、期望或意圖的其他聲明。

These matters involve certain risks and uncertainties, many of which are outside the corporation's control.

這些事項涉及某些風險和不確定性，其中許多風險和不確定性超出了公司的控制範圍。

The corporation's actual results may differ significantly from those projected or suggested in any forward-looking statements due to various risk factors, including those discussed in the corporation's most recently filed from 10-K and in subsequent filings with the Securities and Exchange Commission.

由於各種風險因素，包括公司最近提交的10-K 報告以及隨後向美國證券交易委員會提交的文件中討論的風險因素，公司的實際結果可能與任何前瞻性陳述中預測或建議的結果存在顯著差異。

We do not undertake any obligation to update or otherwise release publicly and revision to our forward-looking statements.

我們不承擔更新或以其他方式公開發布和修改我們的前瞻性陳述的義務。

A replay of this call will be posted on our website later today.

本次通話的重播將於今天稍晚發佈在我們的網站上。

To access the earnings release or the webcast replay, please consult the Investors section of our website at ampcopgh.com. With that, I would now like to turn the call over to Brett McBrayer, Ampco-Pittsburgh's CEO.

若要存取收益發布或網路廣播重播，請查閱我們網站 ampcopgh.com 的投資者部分。現在，我想將電話轉給 Ampco-Pittsburgh 執行長 Brett McBrayer。

Brett?

布雷特？

Thank you, Kim.

謝謝你，金。

Good morning, and thank you, everyone, for joining our call.

早安，謝謝大家加入我們的電話會議。

As stated in our press release this morning, Ampco-Pittsburgh reported operating income for the three- and nine-month period of 2024, of $1.9 million and $7 million.

正如我們今天上午的新聞稿中所述，Ampco-Pittsburgh 報告 2024 年三個月和九個月的營業收入分別為 190 萬美元和 700 萬美元。

Our third quarter performance includes the impact of our seasonal plant shutdowns.

我們第三季的業績包括季節性工廠停工的影響。

Improved margins and operating efficiencies directly related to our recent capital investments in the Forged and Cast Engineered Products segments continues to offset weaker cast roll demand.

與我們最近在鍛造和鑄造工程產品領域的資本投資直接相關的利潤率和營運效率的提高繼續抵消了鑄軋輥需求的疲軟。

Additionally, backlog increased for the quarter with recent additions of row orders for our 2025 order book.

此外，隨著我們最近增加了 2025 年訂單簿的行訂單，本季的積壓訂單有所增加。

We continue to be encouraged by the growth prospects available in our Air & Liquids segment as we improve efficiencies to capture these future opportunities.

隨著我們提高效率以抓住這些未來機遇，我們繼續對空氣和液體部門的成長前景感到鼓舞。

I will now turn the call over to David Anderson, President of our Air & Liquids segment for further comments on the quarter's results.

我現在將把電話轉給空氣和液體部門總裁 David Anderson，以獲取有關本季業績的進一步評論。

Thank you, Brett.

謝謝你，布雷特。

Good morning.

早安.

Air & Liquid Q3 revenue was consistent with prior year, while year-to-date revenue increased 13% versus prior year.

空氣和液體業務第三季營收與去年同期持平，年初至今營收較去年同期成長 13%。

The year-to-date increase was primarily due to increased shipments of custom air handling units.

年初至今的成長主要是由於客製化空氣處理機組的出貨量增加。

The increase was driven by the additional manufacturing capacity achieved by opening the Virginia facility in mid-2023.

這一增長是由 2023 年中期開設維吉尼亞工廠所實現的額外製造能力所推動的。

Backlog increased in the quarter due to a significant order for air handlers that was received from the pharmaceutical market.

由於從製藥市場收到大量空氣處理器訂單，本季積壓訂單增加。

Operating income for Air & Liquid was slightly lower in the quarter versus prior year.

本季空氣和液體業務的營業收入略低於去年同期。

The lower income was mainly due to a $0.2 million credit that was received in the prior year.

收入減少主要是由於前一年收到的 20 萬美元信貸所致。

The production equipment that was purchased with the $1.6 million funding provided by the US Navy was installed and began to operate in Q3.

美國海軍提供160萬美元資金購買的生產設備已於第三季安裝並開始運作。

We are also pleased to announce that Air & Liquid has been approved by the US Navy to receive additional funding to purchase more equipment.

我們也很高興地宣布，Air & Liquid 已獲得美國海軍批准額外資金來購買更多設備。

This additional funding of $4 million will be used to further modernize our production equipment in our Buffalo facility.

這筆 400 萬美元的額外資金將用於進一步現代化我們布法羅工廠的生產設備。

The equipment from this second funding is expected to arrive in our facility in late 2025, and along with the recently installed equipment, we'll significantly upgrade our manufacturing capabilities.

第二筆融資的設備預計將於 2025 年底抵達我們的工廠，加上最近安裝的設備，我們將顯著升級我們的製造能力。

We continue to see positive signs in many of the markets we serve.

我們在我們服務的許多市場中繼續看到積極的跡象。

Recent announcements to reopen two decommissioned US nuclear plants seem to show that the U.S. power generation market is increasingly embracing nuclear power as an answer for capacity issues.

最近宣布重新開放兩座退役的美國核電廠似乎表明，美國發電市場越來越多地接受核電作為解決容量問題的答案。

This is a key market for our heat exchanger product line.

這是我們熱交換器產品線的關鍵市場。

We also recently received our first request to quote a heat exchanger for a small modular reactor.

我們最近也收到了第一份小型模組化反應器熱交換器的報價請求。

While the modular reactor market is still being developed, there is good potential for these reactors to also add to the future growth in the nuclear market.

雖然模組化反應器市場仍在開發中，但這些反應器也有很大的潛力來促進核市場的未來成長。

The US Navy continues to move forward with long-term plans to expand the size of the Navy fleet.

美國海軍繼續推動擴大海軍艦隊規模的長期計畫。

The funding for the Navy is doing to increase the U.S. industrial base is a clear indicator that they want and need more manufacturing capacity to achieve the fleet expansion goals.

海軍為增加美國工業基礎而提供的資金清楚地表明他們希望並需要更多的製造能力來實現艦隊擴張目標。

And the U.S. pharmaceutical market continues to expand production capabilities.

而美國醫藥市場的產能也不斷擴大。

Air handling orders received from this market in 2024 have already exceeded any prior full year order activity.

2024 年從該市場收到的空氣處理訂單已經超過了之前的任何全年訂單活動。

We expect to continue to see strong demand in this market over the next several years.

我們預計未來幾年該市場的需求將持續強勁。

For the last three years, we have seen significant sales growth due to increasing our production capacity and investing in our sales force.

在過去三年中，由於生產能力的提高和對銷售團隊的投資，我們的銷售額顯著成長。

These steps have also positioned Air & Liquid to be able to respond to the future market growth in the years ahead.

這些步驟也使空氣和液體能夠應對未來幾年的未來市場成長。

Thank you, David.

謝謝你，大衛。

Sam Lyon, President of Forged and Cast Engineered Products segment will now share details regarding his group's performance.

鍛造和鑄造工程產品部門總裁 Sam Lyon 現在將分享有關其團隊表現的詳細資訊。

Thank you, Brett, and good morning, everyone.

謝謝你，布雷特，大家早安。

For the 3 months ending September 30, 2024, net sales for the FCEP segment were $67.2 million down from $73.6 million from the same period last year, primarily due to lower rural volumes, reduced FEP shipments and lower surcharge passers.

截至2024 年9 月30 日的三個月，FCEP 部門的淨銷售額為6,720 萬美元，低於去年同期的7,360 萬美元，主要是由於農村銷售下降、FEP 發貨量減少以及附加費過路費減少。

Segment income from operations for Q3 increased to $2.5 million compared to $1.4 million in Q3 of 2023, reflecting the benefits of improved pricing and improved efficiencies, which have more than offset the reduction in volume.

第三季的業務部門收入從 2023 年第三季的 140 萬美元增至 250 萬美元，反映出定價改進和效率提高的好處，足以抵消銷售量的減少。

At the end of the quarter, the segment backlog increased by approximately $4.5 million from December 31, 2023, driven primarily by higher order intake for mill rules.

截至本季末，該部門的積壓訂單較 2023 年 12 月 31 日增加了約 450 萬美元，這主要是由於工廠規則的訂單增加所致。

Our backlog and indicated allocations from our largest customers are positioning us for low to mid-single-digit volume growth in 2025.

我們的積壓訂單和最大客戶的指示分配使我們能夠在 2025 年實現低至中位數的銷售成長。

Our recent investments in capital equipment are already contributing to improved operational efficiencies and positioning us well to take advantage of any market recovery.

我們最近對資本設備的投資已經有助於提高營運效率，並使我們能夠很好地利用任何市場復甦的機會。

Market conditions remained stable during the third quarter.

第三季市場狀況保持穩定。

The rural market in North America and Europe over the last quarter was essentially flat due to end customer demand.

由於終端客戶需求，上季北美和歐洲的農村市場基本持平。

The following 2 quarters will be lighter in volume for our forged rolls somewhat offset by improved demand in our cast roll facilities.

接下來的兩個季度，我們的鍛軋輥產量將有所減少，但我們鑄軋輥設施需求的改善在一定程度上抵消了這種影響。

While we continue to experience market stability, European and North American steel producers still operate below pre-pandemic levels due to economic uncertainties and increased imports of low-priced products from China.

儘管市場持續穩定，但由於經濟不確定性和從中國進口低價產品的增加，歐洲和北美鋼鐵生產商的營運仍低於疫情前的水平。

Our customers in the U.S. have issued petitions for trade action against these imports, and we expect the situation to improve soon.

我們在美國的客戶已發出針對這些進口產品採取貿易行動的請願書，我們預計情況很快就會改善。

In summary, although we face ongoing headwinds related to competitive pressures in Europe and muted on customer demand, our pricing strategy, operational improvements through our recently completed capital upgrades and increased its share in key areas are mitigating these impacts.

總而言之，儘管我們面臨與歐洲競爭壓力相關的持續阻力以及客戶需求減弱，但我們的定價策略、透過最近完成的資本升級實現的營運改善以及在關鍵領域增加份額正在減輕這些影響。

As stated, we are seeing improved demand for 2025, we are confident that our continued focus on operational efficiency and customer satisfaction will position us well for future growth and value creation.

如上所述，我們看到 2025 年的需求有所改善，我們相信，我們對營運效率和客戶滿意度的持續關注將為我們未來的成長和價值創造做好準備。

Thanks, Sam.

謝謝，山姆。

I'll now turn the call over to Mike McAuley, our Chief Financial Officer, for more detail regarding our financial performance for the quarter.

我現在將把電話轉給我們的財務長邁克·麥考利，以了解有關我們本季財務業績的更多詳細資訊。

Thank you, Brett.

謝謝你，布雷特。

As indicated in our Form 10-Q and in our press release issued this morning, Ampco's consolidated net sales for the third quarter of 2024 were $96.2 million, a decline of 5.9% compared to net sales for the third quarter of 2023 due primarily to lower shipment volumes and lower surcharge pass-through revenues in the Forged and Cast Engineered Products segment.

正如我們的10-Q 表格和今天上午發布的新聞稿所示，Ampco 2024 年第三季的合併淨銷售額為9,620 萬美元，與2023 年第三季的淨銷售額相比下降了5.9%，這主要是由於鍛造和鑄造工程產品領域的出貨量和較低的附加費轉嫁收入。

Air & Liquid Processing segment sales were about flat to prior year for the quarter.

本季空氣和液體處理部門的銷售額與去年同期基本持平。

Income from operations for the third quarter of 2024 was $1.9 million. slightly higher than the prior year quarter, which included a $0.2 million insurance recovery.

2024 年第三季營運收入為 190 萬美元。略高於去年同期，其中包括 20 萬美元的保險追償。

The underlying improvement was principally higher pricing net of surcharges and improved manufacturing cost absorption in the Forged and Cast Engineered Products segment.

根本性的改善主要是扣除附加費後的更高定價以及鍛造和鑄造工程產品領域製造成本吸收的改善。

The sequential decline in Q3 2024 operating income versus Q2 2024 was due mainly to lower sales volume and the seasonal plant shutdowns taken in Q3 2024 in the Forged and Cast Engineered Products segment.

與 2024 年第二季相比，2024 年第三季營業收入連續下降，主要是由於鍛造和鑄造工程產品領域的銷量下降以及 2024 年第三季工廠的季節性關閉。

I would also remind listeners that results for the 9 months ended September 30, 2023, included a $1.9 million foreign energy credit.

我還要提醒聽眾，截至 2023 年 9 月 30 日的 9 個月的業績包括 190 萬美元的外國能源信貸。

So the underlying improvement for the 9 months ended September 30, 2024, is actually greater than as reported results.

因此，截至 2024 年 9 月 30 日的 9 個月的基本改善實際上大於報告的結果。

Corporation's total selling and administrative expenses increased for Q3 2024 compared to Q3 2023, primarily due to higher employee-related expense an increase in exchange rates used to translate the SG&A of our foreign subsidiaries and higher professional fees.

與 2023 年第三季相比，2024 年第三季公司的總銷售和管理費用有所增加，主要是由於員工相關費用增加、用於換算我們外國子公司 SG&A 的匯率增加以及專業費用增加。

Interest expense of approximately $3 million for the quarter increased by $0.5 million compared to prior year quarter, primarily due to higher equipment financing debt balance for the new machinery and the U.S. forage business which was completed and converted to term notes earlier this year, as well as higher average revolving credit facility borrowings to support working capital growth and higher average interest rates on our floating rate instruments due to interest rate market movements.

本季利息支出約為 300 萬美元，與去年同期相比增加了 50 萬美元，這主要是由於新機械和今年早些時候完成並轉換為定期票據的美國飼料業務的設備融資債務餘額增加，以及由於利率市場變動，為支持營運資本成長而增加的平均循環信貸便利借款以及我們的浮動利率工具的平均利率上升。

Other income net declined primarily due to foreign exchange transaction losses recorded in Q3 2024 versus gains recorded in Q3 2023.

其他淨收入下降主要是由於 2024 年第三季記錄的外匯交易損失與 2023 年第三季記錄的收益相比。

The income tax provision for both the 3 and 9 months ended September 30, 2024, increased compared to the prior year periods, primarily due to the establishment of a valuation allowance on the net deferred tax assets of our U.K. operations at December 31, 2024.

截至2024 年9 月30 日的3 個月和9 個月的所得稅撥備均較上年同期有所增加，主要是由於我們於2024 年12 月31 日對英國業務的淨遞延稅資產設立了估價備抵。

Given its cumulative 3-year loss history due to continued cast roll market weakness, and the corporation shift of certain cast roll production to its more energy-efficient plant in Sweden.

由於鑄輥市場持續疲軟，該公司已連續三年虧損，並且該公司將某些鑄輥生產轉移到其位於瑞典的更節能的工廠。

As a result, the income tax provision in 2024 does not include any benefit for the operating losses of the U.K. facility.

因此，2024 年的所得稅準備金不包括英國設施營運虧損的任何收益。

By comparison, the tax provision for the 3 and 9 months ended September 30, 2023, included income tax benefits of $0.6 million and $1.2 million, respectively for the operating losses of the U.K. The income tax provisions are otherwise comparable with slight differences for income mix by jurisdictions not under valuation allowances.

相較之下，截至2023 年9 月30 日的3 個月和9 個月的稅務撥備分別包括針對英國經營虧損的60 萬美元和120 萬美元的所得稅優惠。性，但收入組合略有差異由不受估價津貼管轄的司法管轄區。

As a result, net loss for Q3 2024 equaled $2 million or $0.10 per diluted share compared to net income of $0.8 million or $0.04 per diluted share for Q3 2023.

因此，2024 年第三季的淨虧損為 200 萬美元，即稀釋後每股 0.10 美元，而 2023 年第三季的淨利潤為 80 萬美元，即稀釋後每股 0.04 美元。

Net income and earnings per share for the 3 months ended September 30, 2023, included an after-tax benefit of $0.2 million or $0.01 for the asbestos-related credit.

截至 2023 年 9 月 30 日的三個月淨利和每股收益包括 20 萬美元的稅後收益或 0.01 美元的石棉相關抵免額。

Please note that the net income and basic earnings per share for the 9 months ended September 30, 2023, included after-tax benefits of $2.1 million were $11 million or $0.11 per share associated with the best dose related insurance credit and the foreign energy credit.

請注意，截至2023 年9 月30 日的9 個月的淨利潤和每股基本收益（包括210 萬美元的稅後福利）為1,100 萬美元，即與最佳劑量相關保險信貸和外國能源信貸相關的每股0.11 美元。

Total backlog at September 30, 2024, of $383.6 million increased approximately $4.6 billion from December 31, 2023, primarily in the Forged and Cast Engineered Products segment due to an increase in backlog for mill roll orders and, to a lesser extent, a higher foreign exchange translation effect.

截至2024 年9 月30 日，積壓訂單總額為3.836 億美元，較2023 年12 月31 日增加約46 億美元，主要是在鍛造和鑄造工程產品領域，這是由於軋輥訂單積壓訂單的增加，以及較小程度上外國訂單增加所致。

Net cash flows provided by operating activities was $10.6 million for the 9 months ended September 30, 2024, which compares to a use of $10.3 million for the 9 months ended September 30, 2023.

截至2024年9月30日的9個月，經營活動提供的淨現金流量為1,060萬美元，而截至2023年9月30日的9個月的使用量為1,030萬美元。

Primary change item is lower changes in working capital investment between the periods, which more than offset higher pension contributions in the current year period.

主要變化項目是各時期之間營運資本投資的較低變化，足以抵銷本年度較高的退休金繳款。

Capital expenditures for the third quarter of 2024 were $2.9 million or a $2.4 million net of government grant funding.

2024 年第三季的資本支出為 290 萬美元，扣除政府補助金後為 240 萬美元。

We expect full year 2024 CapEx net of grant funding in the range of $9 million to $10 million.

我們預計 2024 年全年資本支出（扣除補助金後）將在 900 萬至 1,000 萬美元之間。

At September 30, 2024, the September's liquidity position included cash on hand of $11.8 million and undrawn availability on our revolving credit facility of $20.5 million.

截至 2024 年 9 月 30 日，9 月份的流動性頭寸包括手頭現金 1,180 萬美元，以及循環信貸額度中未提取的 2,050 萬美元。

Operator, at this time, we would now like to open the line for questions.

接線員，現在我們要開通提問線路。

(Operator Instructions)

（操作員說明）

[Greg Vinet], investor.

[格雷格·維內特]，投資者。

I'm sorry, I didn't ask a question.

抱歉，我沒有問問題。

David Wright, Henry Investment Trust.

大衛‧賴特，亨利投資信託公司。

Brett, it's continued slow progress.

布雷特，進展仍然緩慢。

It's a big shift to turn around.

轉身是一個很大的轉變。

Kind of a big picture question for you when the company did the rights offering four years ago, you would have had a plan in mind some certain things that you hope to happen by certain times, and you can only control so much for sure.

當公司四年前進行配股發行時，這對你來說是一個大問題，你會在腦海中製定一個計劃，希望在特定時間發生一些特定的事情，但你只能控制這麼多。

But 4 years into it now, when you look forward, do you have, maybe, I'll say, a better visibility on where you want to get to and when you're going to be able to get there?

但四年過去了，當你展望未來時，我會說，你是否對你想要達到的目標以及何時能夠達到目標有更好的了解？

David, I believe so.

大衛，我相信是這樣。

We have some targeted actions, I think, further from a restructuring standpoint that we are focused on for the corporation.

我認為，從我們關注的公司重組的角度來看，我們有一些有針對性的行動。

Those continue to progress, I think, well, although not at the pace that I think myself or the team or our shareholders had hoped they would, but they're still clearly in our focus.

我認為，這些工作仍在繼續取得進展，雖然沒有達到我自己、團隊或股東所希望的速度，但它們顯然仍然是我們關注的焦點。

There's actions that we obviously are taking being very mindful of our current debt position and trying to make sure that our focus as we move forward is to continue to lower our debt position and don't want to impede on that, those efforts.

我們顯然正在採取一些行動，非常關注我們當前的債務狀況，並努力確保我們前進的重點是繼續降低我們的債務狀況，並且不想阻礙這些努力。

But yes, I believe the answer to your question is yes.

但是，是的，我相信你的問題的答案是肯定的。

And my -- our focus is within the next 12 to 24 months, we'd be able to execute on some of these final solutions that we think are going to be pretty significant for Ampco moving forward.

我們的重點是在未來 12 到 24 個月內，我們將能夠執行其中一些最終解決方案，我們認為這些解決方案對於 Ampco 的前進非常重要。

That's helpful.

這很有幫助。

When you talk about restructuring and you talk about debt, are you working on things that would result in a reduction in the debt, taken a slug out of it?

當你談論重組和債務時，你是否正在致力於減少債務、擺脫債務？

Yes.

是的。

Yes.

是的。

That's clearly in our focus and on our radar, Dave.

戴夫，這顯然是我們關注的焦點和雷達。

Yes.

是的。

Well, that's super.

嗯，那太棒了。

That's super because obviously, the interest expense is sort of -- it is hard to kind of overcome that.

這太棒了，因為顯然，利息費用是很難克服的。

So that's great.

那太好了。

A question for Sam.

問薩姆一個問題。

Forged and Engineered products, you had hoped that it would maybe be a larger business than it has been lately.

鍛造和工程產品，您曾希望它可能是一個比最近更大的業務。

Are there -- is that really because of fracking?

這真的是因為水力壓裂嗎？

Is that really the major market that would increase revenues in that segment?

這真的是增加該細分市場收入的主要市場嗎？

David, it's just really 2 things.

大衛，這其實只是兩件事。

The fracking business is, I'll say, or a big portion.

我想說，水力壓裂業務佔了很大一部分。

And then the other is just general industrial distribution markets and both are down significantly.

另一個是一般工業分銷市場，兩者均大幅下降。

So we're seeing stable orders.

所以我們看到了穩定的訂單。

We think next year, the distribution markets will increase.

我們認為明年分銷市場將會增加。

We did actually just receive our first small frac block order within the last two weeks for delivery in Q1, which is good.

實際上，我們在過去兩週內剛剛收到了第一筆小型壓裂塊訂單，並在第一季交付，這很好。

It's lower volumes, but we haven't had an order for over 18 months probably.

產量較低，但我們可能已經超過 18 個月沒有收到訂單了。

But those are the two big ones.

但這是兩個大問題。

It's really just the distribution market and then the fracking.

這實際上只是分銷市場，然後是水力壓裂。

Okay.

好的。

Well, I commend you, it's really great to see consistent operating profit come from your unit.

好吧，我讚揚你，看到你的部門持續產生營業利潤真是太棒了。

I know it's been a long slide to get there.

我知道要到達那裡需要很長時間。

So that's great, well done.

所以這很好，幹得好。

Two for Dave.

戴夫的兩個。

Can you quantify like what would a heat exchanger on an SMR be?

您能像 SMR 上的熱交換器一樣進行量化嗎？

Is that $5,000 item, a $25,000 item?

是 5,000 美元的商品還是 25,000 美元的商品？

It will vary, and we're learning that as we go, but no, it would be significantly more than that selling a heat exchanger into the nuclear market, you're talking at least a 6-figure unit typically.

它會有所不同，我們正在了解，隨著我們的發展，但不，它會比向核市場銷售熱交換器要多得多，你通常所說的至少是一個 6 位數的單位。

Even on an SMR?

即使是 SMR？

We don't know for sure because it's so new, but still they are not inexpensive anytime you're doing something in the nuclear market there's a lot more involved in it.

我們不確定，因為它太新了，但只要你在核市場上做某事，它們的價格仍然不便宜，因為它涉及更多的東西。

With the SMRs if and -- well, when they happen, there's -- they're going to be building more of them a year than they built nuclear reactors in a year.

有了中小型反應堆，如果——好吧，當它們發生時——他們一年建造的小型反應堆將比一年建造的核反應器還要多。

Do you have any production capacity constraints for that product?

您對該產品的生產能力有限制嗎？

Not too much.

不是太多。

It's mostly welding in things, which we can add more welders.

主要是焊接東西，我們可以添加更多焊工。

We have the space to do that.

我們有空間做到這一點。

So we can ramp up fairly easily to address that, and that's a problem that I would love to have, honestly.

因此，我們可以相當輕鬆地解決這個問題，老實說，這是我希望遇到的問題。

I think it's a good market potential for us.

我認為這對我們來說是一個很好的市場潛力。

Yes.

是的。

Well, thanks for sharing that opportunity with the call.

好的，感謝您透過電話分享這個機會。

And then the other question, this kind of below-market contract that you've been working off over the course of the year.

然後是另一個問題，這種低於市場價格的合約是你在這一年中一直在處理的。

You've kind of previously that the last effects of that will be gone by the fourth quarter of this year.

您之前曾說過，這種影響的最後影響將在今年第四季消失。

Is that still your thinking?

這還是你的想法嗎？

Yes.

是的。

I mean there may be a few minimal ones that carry forward, but the bulk of this issue is going through to the end of this year, and then there won't be much left after that.

我的意思是，可能有一些最小的問題會繼續下去，但這個問題的大部分會持續到今年年底，之後就不會剩下太多了。

And what -- can you quantify what the impact of that has been on your operating results?

您能量化這對您的經營業績產生的影響嗎？

I would say it's in the estimate of $0.5 million to $1 million.

我想說的是，估計在 50 萬到 100 萬美元之間。

Justin Bergner, Gabelli Funds.

賈斯汀·伯格納，Gabelli 基金。

Could you just review again the cash flow sort of dynamic year-to-date?

您能否再次回顧年初至今的動態現金流？

How much have you gotten from working capital?

您從營運資金中獲得了多少？

Is that mostly exhausted or is there more inflows from reducing working capital yet to come?

是大部分已經耗盡，還是還會有更多因減少營運資本而流入的資金尚未到來？

So in terms of the cash flow statement in the 10-Q, if we feel a part of cash flow from operating activities.

因此，就10季的現金流量表而言，我們是否感覺到經營活動產生的現金流量的一部分。

We did see a release of working capital in the quarter and year-to-date.

我們確實看到本季和年初至今的營運資金釋放。

So that has been part of the story for net cash flow from operating activities, Justin, for sure.

賈斯汀，這肯定是經營活動產生的淨現金流的一部分。

One thing we did mention or we talked about on the prepared remarks is that we have made pension contributions in the current year, which have taken a little away from that, but we're still positive about $10.6 million cash flow from operating activities for the year-to-date period.

我們在準備好的發言中確實提到或討論過的一件事是，我們今年繳納了養老金，這比養老金繳款少了一點，但我們仍然對來自運營活動的1060 萬美元現金流持樂觀態度。

Okay.

好的。

Got you.

明白你了。

Second question was regarding the comment about low to mid-single-digit volume growth for Forged and Cast Engineered products next year.

第二個問題是關於明年鍛造和鑄造工程產品的低至中個位數銷售成長的評論。

Just is that sort of what you think the market is going to do?

您認為市場會這麼做嗎？

Is that what you think you're going to do outgrowing the market?

您認為您會這樣做以超越市場嗎？

Any further color you can provide on that view?

您可以在該視圖上提供任何其他顏色嗎？

Yes, Justin, this is Sam.

是的，賈斯汀，這是山姆。

We're seeing a recovery in the cash side of the business, so U.K. and Sweden, two dynamics.

我們看到業務的現金方面正在復甦，因此英國和瑞典是兩個動態。

One, just the market was very depressed last year or in 2024.

一，只是去年或2024年市場非常低迷。

Secondly, I think I mentioned on the last call that WHEMCO had gotten out of the large cast rolls, static cast roll business.

其次，我想我在上次電話會議中提到，WHEMCO 已經退出了大型鑄輥、靜態鑄輥業務。

And so we're seeing increased orders due to that.

因此，我們看到訂單因此增加。

And with 2 of our largest customers, actually our two largest customers, we've increased share by several points in the latest negotiations.

對於我們最大的兩個客戶，實際上是我們最大的兩個客戶，我們在最近的談判中將份額增加了幾個百分點。

Got you.

明白你了。

Those would be US or international customers?

這些是美國客戶還是國際客戶？

US,

我們，

Okay.

好的。

And are you still poised to get upside?

您是否仍準備好上漲？

Is it meaningful from sort of the new aluminum rolling mills in the US?

美國新建的鋁軋機是否有意義？

We continue to do well there.

我們在那裡繼續表現出色。

Our -- of our total revenue is somewhere in the 15 percentage points or so come from aluminum, and that's continuing to grow.

我們的總收入中有 15 個百分點左右來自鋁，而且這一比例還在持續成長。

The new Steel Dynamics mill will be online -- coming online year aluminum dynamics as well as others.

新的鋼鐵動力工廠將上線——鋁動力工廠以及其他工廠將於今年上線。

So we continue to do well there.

所以我們繼續在那裡做得很好。

Okay.

好的。

And then lastly, any update to the efficiency gains from the equipment that's been installed in your Fortune Cast Engineered Products segment?

最後，您的 Fortune Cast 工程產品部門安裝的設備的效率增益有何更新？

Yes, that's been one of the drivers as to why we're performing better this year.

是的，這就是我們今年表現較好的驅動因素之一。

And it does operate more efficiently, but more importantly, it operates when you want to.

而且它的運行效率確實更高，但更重要的是，它可以在您需要時運行。

Our equipment was very old and reliability was becoming an issue.

我們的設備非常舊，可靠性成為一個問題。

So we're seeing I'd say, compared to what we thought we would get out of the equipment, we're doing much better than what we had anticipated.

所以我想說，與我們認為從設備中得到的結果相比，我們做得比我們預期的要好得多。

And we still need to staff on shift on two of the pieces of equipment just due to some attrition that we had.

由於我們有一些人員流失，我們仍然需要在兩台設備上輪班工作。

So there's some potential for future gains that we can get on top of where we're already at.

因此，我們可以在現有的基礎上取得一些未來收益的潛力。

This concludes our question-and-answer session.

我們的問答環節到此結束。

I'm sorry, we actually have one question that came in.

抱歉，我們實際上有一個問題。

John Bair, Ascend Wealth Advisors.

約翰·貝爾，Ascend Wealth Advisors。

I appreciate getting in here at the last minute.

我很高興在最後一刻來到這裡。

With the change of the administration after this election, I'm wondering how you see a potential improvement for your orders regarding the energy space in general.

隨著這次選舉後政府的更迭，我想知道您如何看待有關能源領域的命令的潛在改善。

Hopefully, there will be a change in the permitting process for LNG facilities in the Gulf Coast.

希望墨西哥灣沿岸液化天然氣設施的許可程序能夠改變。

I'm wondering if you have any applicable presence there that might -- you might see some benefit if that comes to pass.

我想知道您是否在那裡有任何合適的存在，如果這成為現實，您可能會看到一些好處。

And you did reference something about -- I didn't quite catch it about the frac equipment or whatever.

你確實提到了一些關於——我不太明白壓裂設備之類的事情。

So just wondering if you can kind of broadly address that and what your thoughts or hopes are in that regard?

所以只是想知道您是否可以廣泛地解決這個問題以及您在這方面的想法或希望是什麼？

I think, John, in the short term, I don't think we'll see much of an effect because it takes a long time to build any additional liquefied natural gas facilities and things like that.

約翰，我認為，短期內我們不會看到太大的影響，因為建造任何額外的液化天然氣設施和類似設施需要很長時間。

I think where we would see a benefit is on any tariffs preventing blocks flowing in from other countries, even including one of our main competitors is in Mexico.

我認為我們會看到的好處是任何關稅阻止來自其他國家的區塊流入，甚至包括我們的主要競爭對手之一在墨西哥。

And so there could be a potential benefit from that.

因此，這可能會帶來潛在的好處。

I think we'll see a bigger benefit on the rule side of the business than on the energy side of the business in the near term, just due to the fact that imports have increased, don't quote me exactly, but greater than 5 percentage points in the US and in Europe compared to history from dumping and there's current trade cases going on in the US to prevent that, which will increase domestic steel production and then we would see be a direct beneficiary of utilization rates increasing domestically.

我認為短期內我們會在規則方面看到比能源方面更大的好處，只是因為進口增加了，不要準確引用我的話，但大於 5與歷史上的傾銷相比，美國和歐洲的鋼鐵產量下降了幾個百分點，而且美國目前正在進行貿易案件來防止這種情況發生，這將增加國內鋼鐵產量，然後我們將看到國內利用率提高的直接受益者。

Okay.

好的。

And then do you sense that this trend towards onshoring will benefit you in any meaningful way?

那麼您是否認為這種外包趨勢會為您帶來任何有意義的好處？

It already has.

已經有了。

And so our market share with our largest US customers has definitely increased in the last 18 months due to that.

因此，在過去 18 個月裡，我們在美國最大客戶中的市佔率確實有所增加。

So we think that, that will continue to occur.

所以我們認為，這種情況將會繼續發生。

The wildcard would be nice if Europe would do something.

如果歐洲能做點什麼的話，通配符會很好。

But so far, they haven't.

但到目前為止，他們還沒有。

But domestically here in the US, yes, we will see -- I think that, that will help us -- help protect our share.

但在美國國內，是的，我們會看到——我認為這將幫助我們——幫助保護我們的份額。

This concludes our question-and-answer session.

我們的問答環節到此結束。

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

我想將會議轉交管理層發表閉幕詞。

Please go ahead.

請繼續。

Thank you, Chuck.

謝謝你，查克。

As we continue to take required actions to drive improvements in segment performance and capture future growth opportunities.

我們將繼續採取必要的行動來推動部門績效的改善並抓住未來的成長機會。

We are focused on lowering our debt position and further restructuring actions to improve shareholder returns.

我們專注於降低債務狀況並進一步採取重組行動，以提高股東回報。

I want to recognize the tremendous work of our employees across the globe.

我想表彰我們全球員工所做的巨大工作。

I also want to thank our shareholders and the Board of Directors for your continued support.

我還要感謝我們的股東和董事會的持續支持。

Thank you for joining our call.

感謝您加入我們的通話。

This concludes today's conference call.

今天的電話會議到此結束。

Thank you for your participation.

感謝您的參與。

You may now disconnect.

您現在可以斷開連線。