Atmus Filtration Technologies Inc (ATMU) 2024 Q2 法說會逐字稿

Thank you for standing by. And at this time, I would like to welcome everyone to today's Atmus Filtration Technologies second quarter 2024 earnings call. (Operator Instructions) I would now like to turn the call over to Todd Chirillo, Executive Director of Investor Relations. Todd, please go ahead.

謝謝你的支持。此時此刻，我謹歡迎大家參加今天的 Atmus Filtration Technologies 第二季 2024 年財報電話會議。（操作員指示）我現在想將電話轉給投資者關係執行董事 Todd Chirillo。托德，請繼續。

Thank you, operator. Good morning, everyone, and welcome to the Atmus Filtration Technologies second quarter 2024 earnings call. On the call today, we have Steph Disher, Chief Executive Officer, and Jack Kienzler, Chief Financial Officer.

謝謝你，接線生。大家早安，歡迎參加 Atmus Filtration Technologies 2024 年第二季財報電話會議。今天的電話會議由執行長 Steph Disher 和財務長 Jack Kienzler 主持。

Certain information presented today will be forward-looking and involve risks and uncertainties that could materially affect expected results. Please refer to our slides on our website for the disclosure of the risks that could affect our results and for a reconciliation of any non-GAAP measures referred to on our call. For additional information, please see our SEC filings and the Investor Relations pages available on our website at atmus.com. Now I'll turn the call over to Steph.

今天提供的某些資訊將具有前瞻性，涉及可能對預期結果產生重大影響的風險和不確定性。請參閱我們網站上的幻燈片，以了解可能影響我們結果的風險揭露以及我們電話會議中提到的任何非公認會計原則措施的協調。如需了解更多信息，請參閱我們的 SEC 文件以及我們網站 atmus.com 上的投資者關係頁面。現在我將把電話轉給史蒂芬。

Thank you, Todd, and good morning, everyone. Our team delivered another strong quarter of performance even as we see softness in many of our global end markets. On the call today, I will provide an update on our performance in the quarter and update to our outlook for the year and provide some insights on our growth strategy. Jack will then provide additional details regarding our financial performance.

謝謝托德，大家早安。儘管我們看到許多全球終端市場疲軟，但我們的團隊再次實現了強勁的季度業績。在今天的電話會議上，我將介紹我們本季的業績最新情況和今年的展望，並提供有關我們成長策略的一些見解。然後，傑克將提供有關我們財務業績的更多詳細資訊。

During the second quarter, we reached a significant milestone of one year as a publicly listed company. Whilst this is an important milestone, more important is our sustained strong performance over the last 12 months.

第二季度，我們實現了上市公司一週年的重要里程碑。雖然這是一個重要的里程碑，但更重要的是我們在過去 12 個月中持續強勁的表現。

I want to take an opportunity to thank all our global employees for their hard work and dedication to deliver consistently. This has positioned us to recently announce our first quarterly dividend and a share repurchase program. Capital return to shareholders is an important part of our ongoing commitment to strengthen total shareholder value.

我想藉此機會感謝我們所有的全球員工的辛勤工作和奉獻精神，以始終如一地交付成果。這使得我們最近宣布了我們的第一個季度股息和股票回購計劃。股東資本回報是我們持續致力於增強股東總價值​​的重要組成部分。

Now let's turn to second quarter financial results and our updated outlook for 2024. We delivered strong financial performance in the second quarter. Sales were $433 million compared to $414 million during the same period last year. An increase of approximately 5%.

現在讓我們來看看第二季的財務表現和我們對 2024 年的最新展望。我們在第二季取得了強勁的財務表現。銷售額為 4.33 億美元，而去年同期為 4.14 億美元。增幅約為5%。

Adjusted EBITDA in the second quarter was $93 million or 21.4% compared to $18 million or 19.3% in the prior period. Adjusted EBITDA for the quarter excludes $4 million of one-time stand-alone costs and $9 million for the same period last year. Adjusted earnings per share was $0.71 in the second quarter of 2024, and adjusted free cash flow was $34 million. Adjusted free cash flow excludes $23 million of onetime separation related items.

第二季調整後 EBITDA 為 9,300 萬美元，即 21.4%，而上一季調整後 EBITDA 為 1,800 萬美元，即 19.3%。本季調整後 EBITDA 不包括 400 萬美元的一次性獨立成本和去年同期的 900 萬美元。2024 年第二季調整後每股盈餘為 0.71 美元，調整後自由現金流為 3,400 萬美元。調整後的自由現金流不包括 2,300 萬美元的一次性離職相關項目。

Now let me provide some insight into our global markets. Beginning first with the aftermarket. Softer freight activity continued during the second quarter, and if we end, we have yet to see a positive inflection. However, our strong performance is offsetting some of the market weakness and contributing to volume growth. Demand in the US first-fit market is beginning to slow as expected. In India markets remain strong, while China remains sluggish.

現在讓我提供一些對我們全球市場的見解。首先從售後市場開始。第二季貨運活動持續疲軟，如果結束，我們還沒有看到正面的轉折點。然而，我們的強勁表現正在抵消部分市場疲軟並促進銷售成長。正如預期的那樣，美國首次裝修市場的需求開始放緩。印度市場依然強勁，而中國市場依然低迷。

Looking ahead to our outlook, I will start with aftermarket for both on-highway and off-highway, which represents approximately 80% of our global revenues. It is challenging to predict the timing of an aftermarket recovery. We establish our outlook for the aftermarket by considering a number of factors, including third party metrics and input from our global customers across the value chain.

展望我們的前景，我將從公路和非公路售後市場開始，該市場約占我們全球收入的 80%。預測售後市場復甦的時間具有挑戰性。我們透過考慮多種因素來確定售後市場的前景，包括第三方指標和整個價值鏈中全球客戶的意見。

Compared to the prior year, we are expecting our overall global aftermarket revenue to be in a range of flat to up 5%. At a high level, this guidance reflects a declining market with strong market share performance and positive tailwinds from de-stocking, which occurred in 2023 and is not repeated in 2024.

與前一年相比，我們預計全球售後市場整體營收將持平至成長 5%。從較高層面來看，這項指引反映了市場的下滑，但市佔率表現強勁，而且去庫存帶來了積極的推動作用，這種情況發生在 2023 年，在 2024 年不會重複。

Let me provide some further detail regarding the assumptions underpinning this guidance. We expect our global markets for aftermarket to be down in a range of 2% to 4%. We are still experiencing year-over-year declines in freight activity and have not yet seen a positive turning point. Overall, freight activity is expected to be weaker through the balance of the year than previously expected.

讓我提供有關支持本指南的假設的更多細節。我們預計全球售後市場將下降 2% 至 4%。我們的貨運活動仍在年減，尚未看到正面的轉折點。總體而言，今年剩餘時間的貨運活動預計將弱於先前的預期。

In Global Off-Highway, we are seeing softness across the world in construction, mining, and agriculture markets. Offsetting market softness, we expect our outperformance to continue as we accelerate our growth strategy and continue to win new business. We expect our market outperformance to contribute 2% to aftermarket revenue growth.

在全球非公路領域，我們看到全球建築、採礦和農業市場疲軟。我們預計，隨著我們加快成長策略並繼續贏得新業務，我們的優異表現將繼續抵消市場疲軟的影響。我們預計我們的市場表現將為售後市場收入成長貢獻 2%。

Adding an additional 2% of revenue growth will be the benefits related to destocking year-over-year. You may recall our customers were destocking from 2Q through 4Q in 2023 as supply chains normalized. Pricing is also expected to provide an additional 1.5% year-over-year increase.

與去年同期相比，去庫存帶來的收益將額外增加 2% 的收入成長。您可能還記得，隨著供應鏈正常化，我們的客戶從 2023 年第二季到第四季都在去庫存。預計定價也將年比額外上漲 1.5%。

Let's now turn to our first-fit markets. In the US, our view of the heavy-duty market is unchanged. While we are seeing modest improvement in the medium duty market. We anticipate declines in the second half of 2024 in line with industry expectations. We are maintaining our outlook for US heavy-duty truck to be down 7% to 12% for the full year.

現在讓我們轉向我們的首選市場。在美國，我們對重型市場的看法並沒有改變。雖然我們看到中型市場略有改善。我們預期 2024 年下半年的下滑符合產業預期。我們維持美國重型卡車全年下降 7% 至 12% 的預期。

In medium-duty truck, we are raising our guidance to flat to up 5%. Demand for trucks in India is expected to remain strong in both the on-highway and off-highway markets, while in contrast, market conditions in China continue to remain at weak levels. We expect new business wins, including the fuel filtration business of a global OEM we announced last quarter to partially offset some of the market weakness expected in our first-fit business.

對於中型卡車，我們將指導值從持平上調至 5%。印度公路和非公路市場對卡車的需求預計將保持強勁，而相較之下，中國的市場狀況持續保持疲軟水準。我們預計將贏得新業務，包括我們上季度宣布的全球原始設備製造商的燃油過濾業務，以部分抵消我們首次安裝業務預期的一些市場疲軟。

Taken all together, we are raising our revenue guidance to now be in a range of flat to up 3% compared to the prior year, with global sales in an expected range of $1.625 billion to $1.675 billion. We expect continued strong operational performance and the benefits of our first half performance to carry through the year.

總而言之，我們將營收指引上調至與上一年相比持平至成長 3%，全球銷售額預計在 16.25 億美元至 16.75 億美元之間。我們預計今年將持續保持強勁的營運業績和上半年業績的效益。

We are raising our adjusted EBITDA margin 25 basis points and expect to deliver adjusted EBITDA margins of 18.5% to 19.5%. We are also raising our adjusted EPS outlook and now expect to be in a range of $2.15 to $2.40.

我們將調整後 EBITDA 利潤率提高 25 個基點，預計調整後 EBITDA 利潤率將達到 18.5% 至 19.5%。我們也上調了調整後每股盈餘預期，目前預計在 2.15 美元至 2.40 美元之間。

Now I would like to turn to the capital return to shareholders. We announced in July. We are pleased to announce this comprehensive capital return program as part of our ongoing commitment to strengthen total shareholder value.

現在我想談談股東的資本回報。我們在七月宣布。我們很高興地宣布這項全面的資本回報計劃，作為我們增強股東總價值​​的持續承諾的一部分。

The strong cash generation ability of our business allows us to deliver high-quality solutions to our customers, invest in strategic growth initiatives and now return capital to shareholders. We declared our first quarterly dividend of $0.05 a share and announced the authorization of a $150 million share repurchase program. Our priority for capital deployment remains focused on the execution of the four pillars of our growth strategy, for which I will now provide you with an update.

我們業務強大的現金產生能力使我們能夠為客戶提供高品質的解決方案，投資於策略成長計劃，現在將資本回饋給股東。我們宣布第一季股利為每股 0.05 美元，並宣布授權 1.5 億美元的股票回購計畫。我們資本部署的優先事項仍然集中在執行我們成長策略的四大支柱上，我現在將向您提供最新情況。

Our first pillar is to grow share in first-fit. We continue to win with the winners and have secured new vehicle platforms associated with the 2027 US EPA emission standards. We are leaders in fuel filtration and crankcase ventilation. These continued wins further demonstrate our ability to support customers and provide our industry leading Fleet guard products to solve our customers' filtration challenges.

我們的第一個支柱是增加首次適應的份額。我們繼續與贏家共贏，並獲得了符合 2027 年美國 EPA 排放標準的新車輛平台。我們是燃油過濾和曲軸箱通風的領導者。這些持續的勝利進一步證明了我們支援客戶並提供業界領先的 Fleet Guard 產品來解決客戶的過濾挑戰的能力。

Our second pillar is focused on accelerating profitable growth in the aftermarket. We are growing our share of the aftermarket by providing our customers with our technology-leading Fleet guard products where and when they need them.

我們的第二個支柱是專注於加速售後市場的獲利成長。我們透過隨時隨地為客戶提供技術領先的 Fleet Guard 產品來擴大我們的售後市場份額。

Our teams continue to aggressively pursue new business around the globe, allowing us to expand our share of aftermarket business. We have recently launched our filtration science campaign to raise our brand awareness and demonstrate how Fleet guard products provide industry-leading protection and uptime.

我們的團隊繼續在全球積極尋求新業務，使我們能夠擴大售後市場業務的份額。我們最近發起了過濾科學活動，以提高我們的品牌知名度並展示 Fleet Guard 產品如何提供業界領先的保護和正常運行時間。

Our third pillar is focused on transforming our supply chain. We continue to improve on-shelf availability as we stand up our own fully dedicated distribution facilities. Over 80% of our volume is being distributed through dedicated Atmus warehouse facilities and we are on track to have substantially all of our volumes on the Atmus network by the end of the year.

我們的第三個支柱專注於供應鏈轉型。隨著我們建立自己的完全專用的配送設施，我們不斷提高貨架可用性。我們超過 80% 的交易量是透過專門的 Atmus 倉庫設施進行分發的，我們預計在今年年底前將幾乎所有交易量都儲存在 Atmus 網路上。

We continue to drive our costs through investments in automation and efficiencies in our purchasing organization. Our adjusted EBITDA performance demonstrates the results of our continuous focus on cost reduction. At the midpoint of our guidance, we expect to expand adjusted EBITDA margin 340 basis points since the end of 2022 and our supply chain transformation has been a key component of this expansion.

我們繼續透過對採購組織自動化和效率的投資來降低成本。我們調整後的 EBITDA 表現證明了我們持續專注於降低成本的結果。在我們指導的中點，我們預計自 2022 年底以來調整後 EBITDA 利潤率將擴大 340 個基點，而我們的供應鏈轉型是這項擴張的關鍵組成部分。

Our fourth pillar is to expand into industrial filtration markets. We are primarily focused on growing inorganically, and we continue to build our M&A pipeline and review opportunities. While we are excited about the possibilities industrial filtration will bring to us, we are taking a disciplined approach in evaluating potential targets.

我們的第四個支柱是擴展到工業過濾市場。我們主要專注於無機成長，並繼續建立併購管道並審查機會。雖然我們對工業過濾給我們帶來的可能性感到興奮，但我們正在採取嚴格的方法來評估潛在目標。

Our focus remains on creating long-term shareholder value, and we will move forward with acquisitions when we are confident we can deliver on this value. We will continue to keep you informed of our progress.

我們的重點仍然是創造長期股東價值，當我們有信心實現這一價值時，我們將繼續進行收購。我們將繼續向您通報我們的進展。

Now, Jack will discuss our financial results in more detail.

現在，傑克將更詳細地討論我們的財務表現。

Thank you, Steph, and good morning, everybody. We delivered another quarter of strong financial performance. Sales were $433 million compared to $414 million during the same period last year, an increase of approximately 5%. The increase in sales was primarily driven by higher volumes of 3% and pricing of approximately 2%. We outperformed in many of our global markets through gains in market share.

謝謝你，史蒂芬，大家早安。我們又一個季度實現了強勁的財務業績。銷售額為 4.33 億美元，較去年同期的 4.14 億美元成長約 5%。銷售成長主要是由於銷量增加了 3%，定價增加了約 2%。透過提高市場份額，我們在許多全球市場上表現出色。

Gross margin for the second quarter was $132 million, an increase of $18 million compared to the second quarter of 2023. In addition to volumes and pricing, we also benefited from lower commodity costs. Selling, administrative and research expenses for the second quarter were $60 million, an increase of $1 million over the same period in the prior year. The increase was primarily driven by higher people related and consulting costs as we continued to stand up our own team and separate our functions from Cummins.

第二季毛利率為1.32億美元，較2023年第二季增加1,800萬美元。除了銷售和定價之外，我們還受益於商品成本的降低。第二季的銷售、管理和研究費用為 6,000 萬美元，比上年同期增加 100 萬美元。這一成長主要是由於我們繼續建立自己的團隊並將我們的職能與康明斯分開，因此人員相關成本和諮詢成本增加。

Joint venture income was $8 million in the second quarter, flat to our 2023 performance. This resulted in adjusted EBITDA in the second quarter of $93 million or 21.4% compared to $80 million or 19.3% in the prior period.

第二季合資企業收入為 800 萬美元，與 2023 年業績持平。這導致第二季調整後 EBITDA 為 9,300 萬美元，即 21.4%，而上一季為 8,000 萬美元，即 19.3%。

Adjusted EBITDA for the quarter excludes $4 million of one-time stand-alone costs compared to $9 million for the same period last year. We continue to believe these costs will be in a range of $10 million to $20 million in 2024 and be substantially complete by the end of this year.

本季調整後 EBITDA 不包括 400 萬美元的一次性獨立成本，而去年同期為 900 萬美元。我們仍然認為，到 2024 年，這些成本將在 1,000 萬至 2,000 萬美元之間，並在今年年底前基本完成。

These one-time costs primarily relate to the establishment of functions previously commingled with Cummins such as information technologies, distribution centers and human resources. Adjusted earnings per share was $0.71 in the second quarter of 2024 compared to $0.63 last year. The results reflect higher interest expense from a full quarter of debt issued at our IPO in May of 2023.

這些一次性成本主要與建立先前與康明斯混合的職能有關，例如資訊科技、配送中心和人力資源。2024 年第二季調整後每股收益為 0.71 美元，而去年為 0.63 美元。此結果反映出我們 2023 年 5 月 IPO 發行的整個季度債務的利息支出較高。

Adjusted free cash flow was $34 million this quarter compared to $35 million in the prior year. The higher cash usage was primarily related to increased working capital requirements. Free cash flow has been adjusted $5 million for capital expenditures related to our separation for from Cummins compared to $2 million in the previous year. We expect onetime capital expenditures will be in a range of $10 million to $20 million in 2024 and also to be substantially complete by the end of this year.

本季調整後自由現金流為 3,400 萬美元，而上年同期為 3,500 萬美元。現金使用量增加主要與營運資金需求增加有關。由於我們與康明斯的分離，自由現金流已調整了 500 萬美元，而前一年為 200 萬美元。我們預計 2024 年一次性資本支出將在 1,000 萬至 2,000 萬美元之間，並將在今年年底前基本完成。

As we noted in our last call, we are also adjusting free cash flow for working capital inefficiencies associated with the move from inter-company settlement terms with Cummins to stand-alone practices. In the second quarter, this adjustment is $18 million and relates to Cummins processing payroll on our behalf prior to the full separation and we reimburse them on 60 day terms consistent with historical practices.

正如我們在上次電話會議中指出的那樣，我們還在調整自由現金流，以應對因從與康明斯的公司間結算條款轉向獨立做法而導致的營運資金效率低下。第二季的調整金額為 1800 萬美元，涉及康明斯在完全離職前代表我們處理工資單，我們按照歷史慣例按 60 天期限償還他們的費用。

As we have taken over the payroll process, these cash obligations are funded as incurred. We expect these inefficiencies will be mostly complete by the third quarter of this year and expect the full year impact of approximately $35 million. The effective tax rate for the second quarter of 2024 was 21.8% compared to 24.5% in 2023. The decrease was driven by a change in the mix of earnings between US and foreign operations.

由於我們已經接管了薪資流程，因此這些現金義務在發生時提供資金。我們預計這些低效率問題將在今年第三季基本解決，預計全年影響約 3,500 萬美元。2024 年第二季的有效稅率為 21.8%，而 2023 年為 24.5%。這一下降是由於美國和外國業務之間的獲利結構發生變化所致。

Now let's turn to our balance sheet and the operational flexibility. It provides us to execute on our growth strategy and deliver total shareholder value. We ended the quarter with $161 million of cash on hand, combined with the full availability of our $400 million revolving credit facility, we have $561 million of available liquidity. Our cash position and continued strong performance during the second quarter of 2024 has resulted in a net debt to adjusted EBITDA ratio of 1.4 times for the trailing 12 months ended June 30.

現在讓我們來看看我們的資產負債表和營運彈性。它使我們能夠執行成長策略並實現股東總價值​​。截至本季末，我們手頭現金為 1.61 億美元，再加上 4 億美元循環信貸額度已全部可用，我們擁有 5.61 億美元的可用流動資金。我們的現金狀況和 2024 年第二季持續強勁的業績導致截至 6 月 30 日的過去 12 個月的淨債務與調整後 EBITDA 比率為 1.4 倍。

In closing, I want to thank our dedicated global team for all of their efforts as our momentum accelerates and we execute our growth strategy. Now we will take your questions.

最後，我要感謝我們敬業的全球團隊在我們的勢頭加速和執行成長策略的過程中所做的一切努力。現在我們將回答您的問題。

(Operator Instructions)

（操作員說明）

Joe O'Dea, Wells Fargo.

喬奧迪，富國銀行。

Hi. Good morning, everyone. Thanks for taking my questions. Clearly, really good EBITDA performance in the quarter. And Jack, it looks like EBITDA was up $12 million sequentially on revenue that was up 6%. So you talked to price, volume, and cost, but could you kind of break that down a little bit more and in particular what you saw on the cost side? And then related, it does look like guide implies that the EBITDA margin doesn't stay as strong in the back half of the year. So any bridge details there?

你好。大家早安。感謝您回答我的問題。顯然，本季的 EBITDA 表現確實不錯。傑克，看起來 EBITDA 環比增長了 1200 萬美元，收入增長了 6%。您談到了價格、銷售和成本，但您能否進一步細分一下，特別是您在成本方面看到的情況？與此相關的是，指南看起來確實表明 EBITDA 利潤率在今年下半年不會保持強勁。那麼有橋樑細節嗎？

Yes. Maybe I'll start on the sequential bridge, Joe. Thanks for the question. Good morning. So I would say, really, as we bridge from the first quarter to the second quarter, it's really primarily a volume story. Volume was up about $8 million in total revenue, which converted to about a 30 basis point benefit.

是的。也許我會從順序橋開始，喬。謝謝你的提問。早安.所以我想說，實際上，當我們從第一季過渡到第二季時，這實際上主要是一個卷故事。總收入增加了約 800 萬美元，轉化為約 30 個基點的收益。

In addition to that, we also saw some benefits from an absorption standpoint as we had really strong performance across our manufacturing footprints in the second quarter. And as we look toward the back half of the year, we would expect some softening in terms of hours in the plants and production levels. So that's really what drove.

除此之外，我們也從吸收的角度看到了一些好處，因為我們在第二季的製造足跡中表現非常強勁。當我們展望今年下半年時，我們預計工廠的工時和生產水準將會放緩。這就是真正的驅動力。

We did have a few other moving pieces. If you recall, we had some headwinds from a freight perspective in the first quarter, which did not repeat in the second quarter, and a little bit of tailwinds from warranty. But mostly it was a volume story in the plants and just really strong performance in the second quarter and really the first half overall. Maybe I'll turn it to Steph if you want to talk about kind of the first half, second half story.

我們確實還有其他一些令人感動的事情。如果您還記得的話，我們在第一季從貨運角度遇到了一些不利因素，這種情況在第二季度沒有重複，並且在保固方面也有一些有利因素。但大多數情況下，這是工廠的一個大故事，第二季和整個上半年的表現非常強勁。如果你想談談前半部、後半部的故事，也許我會把它交給史蒂芬。

Yeah. I think that's great. Hi, Joe. Good morning. Firstly, as I talked about in my market outlook, I think we see a drop off in the second half relative to the first on volume. And the driver of the margin associated is really very much volume related.

是的。我認為那太好了。嗨，喬。早安.首先，正如我在市場展望中談到的那樣，我認為下半年的成交量較上半年下降。相關利潤率的驅動因素實際上與數量密切相關。

So the two big drivers of the volume decline, second half versus first half, is really firstly the first-fit decline, which we've been discussing for some time now and is broadly aligned with previous expectations. But in addition to that, I would say, on the aftermarket side, freight activity, we were expecting to turn positive by now. We've been in a long and subdued decline on freight activity, but that turn in the aftermarket or freight activity, we're now seeing later in the year of 2024 and perhaps early into 2025.

因此，下半年與上半年相比，銷量下降的兩大驅動因素實際上首先是首次下降，我們已經討論了一段時間，並且與之前的預期大致一致。但除此之外，我想說，在售後市場方面，貨運活動，我們預計現在會轉為積極。我們的貨運活動一直處於長期溫和的下降狀態，但我們現在可以在 2024 年晚些時候甚至 2025 年初看到售後市場或貨運活動的轉變。

So really, volume drivers leading to a lighter second half relative to first half, that is driving the margin outcomes. I certainly acknowledge that it implies a challenging decremental margin environment. We have certainly delivered strong incrementals, as well and this still implies a midpoint of 19% adjusted EBITDA in our guide, and that delivers strong incrementals year-over-year is how I'm thinking about it. We are still establishing a stand-alone company.

因此，實際上，銷售驅動因素導致下半年相對於上半年的銷售量下降，從而推動了利潤率結果。我當然承認，這意味著一個充滿挑戰的遞減利潤環境。我們當然也實現了強勁的增量，這仍然意味著我們的指南中調整後 EBITDA 的中點為 19%，而我的想法是逐年實現強勁的增量。我們仍在建立一家獨立的公司。

Obviously, the cost structure that goes with standing up as a separate company and separating activities from Cummins. And we expect to see growth into the horizon, so don't really expect to be taking short-term cost out if you like. Hence, the decline you see in margins in the second half is really directly related to the volume story.

顯然，成本結構與作為一個獨立的公司而存在並將活動從康明斯分離出來有關。我們預計會看到成長，所以如果你願意的話，不要真的指望消除短期成本。因此，下半年利潤率的下降實際上與銷售情況直接相關。

Got it. Those are helpful details. And then, Steph, wanted to touch on I think, some really good color related to aftermarket and what you're seeing in that market. I guess, when we think about the components of growth and think about visibility into the rest of the year and aftermarket for you, I would think that the pricing is in place at this point. The destock is a comp situation.

知道了。這些都是有用的細節。然後，史蒂芬，我想談談一些與售後市場相關的非常好的顏色以及您在該市場上看到的東西。我想，當我們考慮成長的組成部分並考慮今年剩餘時間和售後市場的可見性時，我認為此時定價已經到位。去庫存是一種補償情況。

And so the swing factor seemed like it would more so be related to outperformance and market trends. And so could you just talk about the visibility that you have into continued outperformance versus the market, and how you think about the variability of the market into the back half of the year?

因此，波動因素似乎更與表現和市場趨勢相關。那麼您能否談談您對持續跑贏大盤的看法，以及您如何看待下半年市場的變化？

So let me talk about the outperformance. We do -- we do feel that we've demonstrated outperformance in the first half in share, in aftermarket, and we see that the way that we've assumed in our guide, we believe that will continue here through the second half, and we have strong confidence in that. And so that's I'd say that continuing at this trend. I think the variable that is a little more unknown for us is just really when does the freight activity turn.

那麼讓我談談表現出色。我們確實 - 我們確實覺得我們在上半年的份額和售後市場上表現出了優異的表現，並且我們看到我們在指南中假設的方式，我們相信這種情況將持續到下半年，並且我們對此充滿信心。所以我想說的是，繼續這種趨勢。我認為對我們來說更未知的變數是貨運活動何時轉變。

There's a lot of uncertainty in the market around that. I think it's certainly a prolonged downturn period that we're experiencing. And so right now, we've assumed that happens into the back half year of 2024. I think there's just a question of how that plays out. But that -- we've taken a view that we're not going to see much recovery of that inside 2024 and we're going to still see downwards pressure in freight activity and that's what's implied in our guide.

市場對此存在許多不確定性。我認為我們正在經歷一個長期的低迷時期。所以現在，我們假設這會發生在 2024 年下半年。我認為這只是一個如何發揮作用的問題。但我們認為，到 2024 年，我們不會看到貨運活動有太大復甦，貨運活動仍將面臨下行壓力，這就是我們的指南中暗示的內容。

Got it. Thanks very much.

知道了。非常感謝。

Tami Zakaria, J.P. Morgan.

塔米·扎卡里亞，摩根大通。

Hey. Good morning. Thank you so much and very nice quarter. So a couple of questions. Just following up on that aftermarket question from before, so how much was aftermarket down globally in the first half versus the 2% to 4% decline you expect this year? The genesis of my question is, do you expect the global aftermarket to be worse than the 2% to 4% in the back half?

嘿。早安.非常感謝，非常愉快的季度。有幾個問題。繼續之前提到的售後市場問題，那麼上半年全球售後市場下降了多少，而您預計今年會下降 2% 到 4%？我的問題的根源是，您預計全球售後市場會比下半年的2%至4%更差嗎？

Yeah. Good morning, Tami. Great to speak to you, and thanks for the acknowledgment on the strong quarter. I guess, two dynamics playing out here that I would club together. I'd broadly say our downturn on market in the first half in aftermarket was about 2%.

是的。早上好，塔米。很高興與您交談，並感謝您對強勁季度的認可。我想，這裡有兩種動力，我會把它們結合在一起。我想說的是，上半年我們售後市場的下滑幅度約為 2%。

We offset that by just under [1%] in destock in the first half. What we're going to see in the second half is, still strong downturns, so down between that 2% to 4%, at the 3% at the midpoint. And then you've got destocking playing a positive role that offsets that slightly more here in the second half.

我們在上半年通過去庫存抵消了略低於 [1%] 的影響。下半年我們將看到經濟仍然強勁下滑，因此下降 2% 到 4% 之間，中間為 3%。然後，去庫存發揮了積極作用，在下半年稍微抵消了這一影響。

We saw destocking really start with our customers last year in the second quarter, and customers did that at different pacing throughout the year, and it's spread out through the fourth quarter. So that's the two dynamics that play. Similarly, declining market conditions offset by more favorable tailwinds on destock in the second half.

我們看到去年第二季度我們的客戶真正開始去庫存，客戶全年以不同的節奏進行去庫存，並且分散到第四季度。這就是發揮作用的兩種動力。同樣，市場狀況的下滑被下半年去庫存的更有利的推動因素所抵消。

Thank you. That is very helpful. So the follow-up question is, when I look at the guide, full-year revenue guide, to get to the midpoint of the sales guide, the back half needs to be down, call it, about 1% year-over-year, versus the growth that you've seen in the first half. So are you expecting back half to be down year-over-year? Is that the trend you're seeing quarter to date?

謝謝。這非常有幫助。所以後續問題是，當我看指南時，全年收入指南，要達到銷售指南的中點，後半部分需要下降，稱之為，同比大約 1% ，與您在上半年看到的增長相比。那麼您預計下半年會年減嗎？這是您本季迄今看到的趨勢嗎？

That's right, Tami. And the big driver of that is the first-fit market decline. So particularly in heavy-duty truck or Class 8 trucks, that has certainly been implicit in our guide, but that's the big driver of the decline year-over-year.

沒錯，塔米。其主要驅動因素是首次適應市場的下滑。因此，特別是在重型卡車或 8 級卡車中，這一點肯定已隱含在我們的指南中，但這是同比下降的主要驅動因素。

Understood. Okay. Thank you.

明白了。好的。謝謝。

Rob Mason, Baird.

羅布梅森，貝爾德。

Yes. Again, nice work, Steph, and Jack. Maybe to circle back again just to the aftermarket business. So just so I'm clear, you've raised the outlook for the full year in aftermarket, from flat to 2% to flat to up 5%. And again, it sounds like maybe the market conditions are a little bit worse. So it sounds like share gains are better in your outlook.

是的。再次，幹得好，史蒂芬和傑克。也許我們會再次回到售後市場業務。所以我要明確的是，你們已經將售後市場全年的前景從持平上調至 2%，上調至持平至成長 5%。再說一次，聽起來市場狀況可能有點糟糕。因此，聽起來您對股票收益的看法會更好。

Could you put a little more color around that in terms of where you're gaining share, whether it's domestic or international, whether it leans more on road versus off road, just -- or products in particular? Just a little more color there, please.

您能否就您在哪些方面獲得份額，無論是國內還是國際，無論是更傾向於公路還是越野，或者特別是產品？請再多一點顏色。

Absolutely. Yeah. Good morning, Rob. Certainly, I'd just comment on the overall. I think you've crafted it right. We've tried to give a more complete picture in our opening comments this time on aftermarket. So I think we may have got ourselves caught up a little bit in the comparisons between the call, flat to 5% versus the flat to 2%. The flat to 2% really reflected the view of the market story previously only, and now we've tried to give them more comprehensive view of aftermarket revenues.

絕對地。是的。早安，羅布。當然，我只是對整體進行評論。我認為你做得對。這次我們試圖在售後市場的開場評論中提供更完整的情況。因此，我認為我們可能在看漲期權之間的比較中陷入了困境，持平於 5% 與持平於 2%。持平至 2% 確實反映了先前僅對市場故事的看法，現在我們試圖讓他們更全面地了解售後市場收入。

So if you think about a midpoint, we were assuming of market previously of 1%, we're now saying that it's between 2% to 4% down, so a midpoint of 3% down. That's what we've seen is the sort of decline in market conditions in the aftermarket completely driven by a push out of a positive inflection of freight activity.

因此，如果你考慮一個中點，我們之前假設市場下跌 1%，現在我們說下跌 2% 到 4% 之間，所以中點下跌 3%。這就是我們所看到的售後市場市場狀況的下降，完全是由貨運活動的積極變化所推動的。

So that's just a link to the market story. We've continued to see ongoing share gains in the aftermarket is how I would describe it. Very strong in North America from a geographic perspective, is where I would characterize it.

所以這只是市場故事的一個連結。我是這樣描述售後市場份額持續成長的。從地理角度來看，北美地區非常強大，這是我對它的描述。

Really driven, I would say, by a combination of the activity of improving our distribution network, access to our products. You heard in my opening comments that we've been very deliberate on building brand presence with a new campaign on filtration science and how our Fleet guard products protect. And we really think that the combination of these factors are building greater awareness of our product in the aftermarket, coupled with a much stronger distribution capability to be able to service that. It's how I would broadly characterize those wins.

我想說，真正的驅動力是透過改善我們的分銷網絡和獲取我們的產品的活動相結合的。您在我的開場白中聽說，我們一直在非常慎重地通過一項關於過濾科學以及我們的 Fleet Guard 產品如何提供保護的新活動來建立品牌影響力。我們確實認為，這些因素的結合正在提高我們產品在售後市場的知名度，再加上更強大的分銷能力來提供服務。這就是我對這些勝利的大致描述。

That's very helpful color, Steph, appreciate that. Just as to my follow-up, could you speak to the expansion of your capital allocation strategy here, I guess, in the near term in terms of how you might be looking at share repurchases versus M&A just, I guess, given what you have may have right in front of you in the M&A pipeline?

這是非常有用的顏色，史蒂芬，很欣賞。正如我的後續行動一樣，您能否談談您的資本配置策略的擴展，我想，在短期內，您可能會如何看待股票回購與併購，我想，考慮到您所擁有的情況併購管道中可能就在您的面前？

Sure. I was really excited to be able to launch the capital returns program. I know it's something I've been asked about for most of this year as we started out 2024. So I feel really good about that. As I think about the share repurchase program, this really gives us now the mechanics and the tools to be able to return cash to shareholders as we move forward and balance that against our stated capital allocation priorities of investing in the growth of the business.

當然。我很高興能夠啟動資本回報計劃。我知道，隨著 2024 年的到來，今年大部分時間我都被問到這個問題。所以我對此感覺很好。當我想到股票回購計劃時，這確實為我們提供了機制和工具，使我們能夠在我們前進的過程中向股東返還現金，並在我們既定的投資於業務增長的資本分配優先事項之間取得平衡。

And, obviously, the flexibility that comes with a share repurchase program alongside M&A is a really good tool for us from our perspective as to how we do that. Look, I think as this plays out, we'll be able to give more clarity. I think what we can give as clarity here right now is it's great to have the tools and the mechanism in place to deliver on a share repurchase program.

顯然，從我們如何做到這一點的角度來看，股票回購計畫和併購所帶來的靈活性對我們來說是一個非常好的工具。聽著，我認為隨著事情的發展，我們將能夠提供更多的清晰度。我認為我們現在可以明確的是，擁有適當的工具和機制來實施股票回購計畫是件好事。

We'll obviously balance that against opportunities that we see in the M&A pipeline to give us enough dry powder to be able to act on growth opportunities that will create value for shareholders. So that's how I'd characterize it right now. As the quarters play out, obviously, we'll be able to give further color to this, but really pleased to be able to have this mechanism now in place.

顯然，我們將平衡這一點與我們在併購管道中看到的機會，為我們提供足夠的乾粉，以便能夠抓住為股東創造價值的成長機會。這就是我現在對它的描述。顯然，隨著季度的結束，我們將能夠為此提供更多的色彩，但我們很高興現在能夠建立這種機制。

Sure. Thanks, Steph. Appreciate it.

當然。謝謝，史蒂芬。欣賞它。

Andrew Obin, Bank of America.

安德魯‧奧賓，美國銀行。

Thank you. This is David Ridley-Lane on for Andrew. Could you just maybe give us an update on your progress in adding independent distributors to the Fleet guard network?

謝謝。我是安德魯的大衛雷德利-萊恩。您能否向我們介紹一下您在為艦隊警衛網路新增獨立經銷商方面取得的最新進展？

So good morning, David. We've spoken many times about the strength of our channel to market. We have a particularly strong path to market and channel partners across the US. And then, that positioning differs across the world is what I would say. And so, I think our focus on independent channels and adding those largely has been in more emerging markets like Latin America as an example. And we've certainly been aggressive there in identifying new partners, and that has contributed to fuelling our growth in that region in particular.

早安，大衛。我們已經多次談論過我們的市場管道的實力。我們擁有通往美國各地市場和通路合作夥伴的特別強大的途徑。然後，我想說的是，世界各地的定位有所不同。因此，我認為我們對獨立通路的關注和增加這些管道主要是在拉丁美洲等更多新興市場。我們當然一直在積極尋找新的合作夥伴，這尤其有助於推動我們在該地區的成長。

And then, I would say, we're focused very much on other emerging markets as to where we will look to build those independent distributor channels. Certainly, there's still some opportunities still do that in the US, and we expect to still pursue some of those opportunities here in the second half and beyond. But I would say we've got a very strong channel position here in the US that we look to leverage further.

然後，我想說，我們非常關注其他新興市場，我們將在哪裡建立這些獨立的分銷管道。當然，在美國仍然有一些機會這樣做，我們預計下半年及以後仍會在這裡尋求其中的一些機會。但我想說的是，我們在美國擁有非常強大的通路地位，我們希望進一步利用這一地位。

Thank you. And then maybe a quick one for Jack, just a clarification point. Does the guidance now have 1.5% price for the year or was that just an aftermarket specific comment?

謝謝。然後也許是傑克的一個簡短的發言，只是一個澄清點。該指導現在是否有 1.5% 的年度價格，或者這只是售後市場的具體評論？

Yeah. So that's the full-year picture, David. Obviously, most of the pricing activities, generally occur in the aftermarket, so that 1.5% heavily weighted toward the aftermarket, and that's up from approximately 1% at the beginning of the year. So obviously that difference is a very modest pricing action taken for the second half.

是的。這就是全年的情況，大衛。顯然，大部分定價活動通常發生在售後市場，因此售後市場佔 1.5% 的比重，高於年初的約 1%。顯然，這種差異是下半年採取的非常溫和的定價行動。

Thank you very much.

非常感謝。

Thanks, Andrew.

謝謝，安德魯。

Jerry Revich, Goldman Sachs.

傑瑞·雷維奇，高盛。

Yes. Hi. Good morning, everyone.

是的。你好。大家早安。

Good morning, Jerry.

早安，傑瑞。

Steph, Jack, hi. On gross margins, just to come back to the quarter, you had a massive step up sequentially this year over 30% gross margins on pretty similar sales, which I think is well ahead of normal seasonality. So what about the business accelerated 2Q versus 1Q?

史蒂芬，傑克，嗨。就毛利率而言，回到本季度，今年的毛利率在相當相似的銷售額上連續大幅上升超過 30%，我認為這遠遠領先於正常的季節性。那麼第二季的業務加速與第一季相比又如何呢？

Is it normalization of costs? Is it new price increases? And then, as I think about that within the context of the back half guide, obviously, you folks have a track record as a public company and have continually beating expectations. So it does sound like that's part of the framework for the guide, unless you tell me there was something not recurring in the quarter?

成本正常化了嗎？是新的漲價嗎？然後，當我在後半部分指南的背景下思考這一點時，顯然，你們作為一家上市公司擁有良好的記錄，並且不斷超出預期。所以聽起來這確實是指南框架的一部分，除非你告訴我本季沒有重複發生的事情？

Well, good morning, Jerry. Thanks for that. I'm going to ask Jack to take the piece on margin step up, and then maybe I'll circle back on the guide comments.

好吧，早上好，傑瑞。謝謝你。我會請傑克把這篇文章放在邊距上，然後也許我會回到指南評論上。

Yeah, absolutely. So, Jerry, there's really a few different things at play as I was describing to Joe. So there is a bit of a volume step up sequentially. There really is no impact from a pricing perspective sequentially from Q1 to Q2. And then, there's a few bits and pieces of favorability. So a little bit of favorability from freight, same on materials, same on warranty, all of which taken together contribute to a healthy step up.

是的，絕對是。所以，傑瑞，正如我向喬描述的那樣，確實有一些不同的事情在起作用。因此，音量會逐漸增加。從定價角度來看，從第一季到第二季確實沒有受到影響。然後，還有一些點點滴滴的好感。因此，貨運方面的一點優惠，材料上的相同，保固上的相同，所有這些加在一起有助於健康的進步。

And then the last piece and probably the biggest piece is just strength in the manufacturing cost environment. That's both evidence of really strong production. That contributed to the strength of our ability to deliver for our customers over the first half. And you can see a little bit in our elevated inventory balances as well. As we think about then the -- what's one time, if you will, and -- there's really nothing one time. There's just a collection of favorability, and then the rest is the volume story from a first-half, second-half standpoint.

最後一點，也可能是最重要的一點，就是製造成本環境中的優勢。這都是生產非常強勁的證據。這增強了我們上半年為客戶提供服務的能力。您也可以看到我們的庫存餘額增加。當我們思考時——如果你願意的話，什麼是一次，而且——實際上什麼都沒有。只是好感度的集合，剩下的就是從上半場、下半場的角度來看的捲故事。

Yeah. So and I might just take up this point on the guide and the comments he made. We believe the guide is a prudent guide as we still head into a declining environment here in the second half. Declining on first-fit and Class 8 truck production and not seeing a positive inflection on freight activity, really driving downside in our aftermarket versus our relative guidance -- our previous guidance position. So in terms of the margin performance associated with that, we've certainly been discussing that, I would say.

是的。因此，我可能會在指南和他的評論中討論這一點。我們認為該指南是一個謹慎的指南，因為下半年我們仍將面臨下滑的環境。首次安裝和 8 級卡車產量下降，並且貨運活動沒有出現積極變化，與我們的相對指導（我們之前的指導立場）相比，確實導致了我們的售後市場的下行。因此，就與此相關的利潤率表現而言，我想說，我們當然一直在討論這一點。

And the way I would characterize it, I don't see a lot of flexibility that I have in the short term to take out fixed cost. Jerry, we're a brand new company standing up a capable organization, that can deliver on our commitments and while we're separating from Cummins. And so certainly no intention to sort of pull out fixed cost here in the short term.

從我的描述來看，我認為短期內沒有很大的彈性來消除固定成本。傑瑞，我們是一家全新的公司，擁有一個有能力的組織，可以在我們與康明斯分開時兌現我們的承諾。因此，短期內肯定無意取消固定成本。

And we do see recovery of the markets that we're talking about and we want to be well-positioned to continue to grow through that cycle in a business that is not very cyclical, frankly, like, we're with a large aftermarket content, and so we really want to be continuing to position our business for long-term growth.

我們確實看到了我們正在談論的市場的復甦，並且我們希望處於有利地位，能夠在周期性不太明顯的業務中繼續增長，坦率地說，就像我們擁有大量的售後內容，因此我們確實希望繼續將我們的業務定位為長期成長。

Okay, super. I appreciate it. And then, Jack, can we just follow up on capital deployment policy? One of the big opportunities we've discussed over the past couple of years for your business separate from Cummins was to build out the industrial filtration part of the franchise.

好吧，超級。我很感激。然後，傑克，我們可以跟進資本配置政策嗎？在過去幾年中，我們為您與康明斯以外的業務討論的重大機會之一是建立特許經營權的工業過濾部分。

And given the dividend and the stock buyback authorization, I'm wondering if you can comment on the M&A pipeline maybe less robust than we thought over the past couple of years, and what does that tell us about the M&A opportunity set over the next 12 months to 18 months?

考慮到股息和股票回購授權，我想知道您是否可以評論一下併購管道可能沒有我們過去幾年想像的那麼強勁，這對我們未來 12 年的併購機會有何啟示幾個月到18個月？

Thanks for that question. We always viewed that capital returns to shareholders will be part of the mix of our overall shareholder value creation. And so we always expected to be doing this in time. Feels good to be doing that a year out of the gates with a modest dividend return and the balance of that being a flexible program around share buybacks.

謝謝你提出這個問題。我們始終認為，股東的資本回報將成為我們整體股東價值創造的一部分。所以我們總是希望能夠及時完成這件事。在一年之內就這樣做，並獲得適度的股息回報和圍繞股票回購的靈活計劃的平衡，感覺很好。

Obviously, the world of M&A is opportunistic somewhat and based on the opportunities that present themselves. So we really wanted the balance of this capital returns to be in share buybacks so that we could balance, capability, from an investment perspective, to be able to invest in M&A opportunities as they presented it.

顯然，併購世界在某種程度上是機會主義的，並且基於出現的機會。因此，我們確實希望資本回報的平衡在於股票回購，以便我們能夠從投資的角度平衡能力，能夠投資他們提出的併購機會。

In terms of our progress there, we are making really good progress. I'd say, building the M&A muscle, the strength of our pipeline, we've continued to look at a number of opportunities and worked through diligence processes on those, and we continue to do so. And we will balance out our foresight to M&A opportunity with returns to shareholders.

就我們在那裡的進展而言，我們正在取得非常好的進展。我想說的是，為了增強併購實力，增強我們的管道實力，我們繼續尋找許多機會，並對這些機會進行盡職調查，我們將繼續這樣做。我們將平衡併購機會的遠見與股東回報。

But very much the premises here, we are looking to enter into industrial filtration to grow our business, to increase overall shareholder return. And that's our driver, and it's not certainly not growth for growth's sake. And so we're taking -- it's taking time for us to find exactly the right targets there, which is how I would describe it.

但在很大程度上，我們希望進入工業過濾領域來發展我們的業務，並提高股東的整體回報。這就是我們的驅動力，而且絕對不是為了成長而成長。因此，我們需要時間才能在那裡找到正確的目標，這就是我所描述的。

Appreciate it, Steph, and Jack. Thank you.

謝謝你，史蒂芬和傑克。謝謝。

(Operator Instructions) Bobby Brooks, Northland Capital.

（操作員說明）Bobby Brooks，Northland Capital。

Hey. Good morning, guys. Thank you for taking my question. Just wanted to kind of double click on the buyback. So it sounds like the buybacks is more opportunistic than programmatic. Just given your commentary earlier on that, buyback is maybe the swing factor with how have you leaned into a buyback would be with the M&A opportunities, or am I maybe reading into that too much and then it's just -- it'll be a mix of both maybe a base programmatic approach and flex harder or lean harder into it and what M&A looks like?

嘿。早安，夥計們。感謝您回答我的問題。只是想雙擊回購。因此，聽起來回購更像是機會主義而非程序化。剛剛考慮到你之前的評論，回購可能是你如何傾向於回購的搖擺因素，以及併購機會，或者我可能對此解讀太多，然後它只是——這將是兩者都可能是一種基本的程序化方法，並且更加努力地彎曲或更傾向於它，併購是什麼樣子的？

Thanks for the question. I think our priority right now was to get a framework in place to be able to return cash to shareholders. And certainly, we'll look to act on that in -- an opportunistic way is a good way to describe it coming out of the gate. And then I expect us to be able to get a clearer view of exactly what that looks programmatically adding to 2025 and beyond, and we'd be able to share more as we shape that.

謝謝你的提問。我認為我們現在的首要任務是建立一個框架，以便能夠向股東返還現金。當然，我們會採取行動——機會主義的方式是描述它出現的好方法。然後我希望我們能夠更清楚地了解以程式設計方式為 2025 年及以後添加的內容，並且在我們塑造它的過程中能夠分享更多內容。

But I think right now, the way you should hold it, it's good to have the framework in place. There'll be a base level that that we look to build as programmatic, that we'll communicate more on as we go forward. And then there'll be a balance that is based opportunistic against our M&A options.

但我認為現在，以你應該採取的方式，框架到位是件好事。我們希望將其建構成程式化的基礎級別，隨著我們的前進，我們將在該級別上進行更多溝通。然後就會出現基於機會主義與我們的併購選擇的平衡。

Got it. That's great color. Thank you, Steph. And then, could you just maybe remind us so obviously, there's a tailwind in the quarter was lower raw material cost. Could you just remind us what maybe are the three most important raw material costs to the business?

知道了。那顏色真棒。謝謝你，史蒂芬。然後，您能否提醒我們一下，本季的有利因素是原物料成本下降。您能否提醒我們對企業最重要的三種原料成本是什麼？

Okay. Yeah, I'll hand that to Jack.

好的。是的，我會把它交給傑克。

Yeah. Absolutely. So I mean, the biggest, is steel, Bobby. And so we've seen the index bumping along a little bit, but we do expect overall for the year a favorable impact for our business. As a reminder, as you're kind of tracking the index and thinking about the impact to our financials, there is about three-month lag, so about a quarter lag relative to movement in that index.

是的。絕對地。所以我的意思是，最大的是鋼鐵，鮑比。因此，我們看到該指數略有上漲，但我們確實預計今年總體而言會對我們的業務產生有利的影響。提醒一下，當您追蹤該指數並考慮對我們財務的影響時，大約存在三個月的滯後，因此相對於該指數的變動大約有四分之一的滯後。

The next would be, kind of plastics and resin overall, as you think about our -- as you think about our products. And then there's a number of other small categories, if you will, media, packaging, things like that.

下一個將是整體塑膠和樹脂，就像您想到我們的產品一樣。如果你願意的話，還有許多其他小類別，例如媒體、包裝等。

Got it. Thank you. Yeah, I'll turn it over -- turn it back to the queue. Congrats on a great quarter, guys.

知道了。謝謝。是的，我會把它轉回來——把它轉回隊列。夥計們，恭喜你們度過了一個出色的季度。

Thanks, Bobby.

謝謝，鮑比。

Thank you. Thanks.

謝謝。謝謝。

Thanks, Bobby. And that is all the questions we have today. So I will now turn the call back over to Todd Chirillo for closing remarks. Todd?

謝謝，鮑比。這就是我們今天的所有問題。因此，我現在將把電話轉回給 Todd Chirillo 進行總結發言。托德？

Thank you. That concludes our teleconference for today. Thank you all for participating and your continued interest. As always, the Investor Relations team will be available for your questions after the call. Thank you and have a great day.

謝謝。我們今天的電話會議到此結束。感謝大家的參與和持續的關注。與往常一樣，投資者關係團隊將在電話會議後回答您的問題。謝謝您，祝您有美好的一天。

Thanks, Todd. And again, ladies and gentlemen, that concludes today's call. Thank you all for joining, and you may now disconnect.

謝謝，托德。女士們先生們，今天的電話會議到此結束。感謝大家的加入，現在可以斷開連線了。