Barrick Mining Corp (B) 2012 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Barnes Group, Inc. first-quarter 2012 earnings call. My name is Erin and I'll be your coordinator for today. At this time all participants are in a listen-only mode. We will be facilitating a question-and-answer session toward the end of today's conference. (Operator Instructions) I will now turn the presentation over to your host for today's conference, Mr. William Pitts, Director of Investor Relations. Please proceed, sir.

女士們先生們，美好的一天，歡迎來到 Barnes Group, Inc.。2012 年第一季財報電話會議。我叫艾琳，我將擔任你們今天的協調員。此時所有參與者都處於只聽模式。我們將在今天會議結束時安排問答環節。（操作員指示）我現在將簡報交給今天會議的東道主投資者關係總監 William Pitts 先生。請繼續，先生。

Thank you, Erin.

謝謝你，艾琳。

Good morning, everyone, and thank you for joining us today. With me this morning is Barnes Group President and CEO, Greg Milzcik and Senior Vice President of Finance and Chief Financial Officer Chris Stephens. If you have not received a copy of our earnings press release, you can find it on the investor relations section of our corporate website at BGInc.com.

大家早安，感謝您今天加入我們。今天早上與我在一起的是 Barnes Group 總裁兼執行長 Greg Milzcik 以及財務高級副總裁兼財務長 Chris Stephens。如果您還沒有收到我們的收益新聞稿副本，您可以在我們公司網站 BGInc.com 的投資者關係部分找到它。

During our call we will be referring to the earnings release supplement slides, which are also posted on our website. I want to remind everybody that certain statements we make on today's call, both during the opening remarks and during the question-and-answer session, may be forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Please consider the risks and uncertainties are mentioned in today's call and are described in our periodic filings with the Securities and Exchange Commission. These filings are available through the investor relations section of our corporate website at BGInc.com.

在我們的電話會議中，我們將參考收益發布補充幻燈片，這些幻燈片也發佈在我們的網站上。我想提醒大家，我們在今天的電話會議上在開場白和問答環節中所做的某些陳述可能是 1995 年《私人證券訴訟改革法案》中定義的前瞻性陳述。這些前瞻性陳述存在風險和不確定性，可能導致實際結果與預測有重大差異。請考慮今天的電話會議中提到的風險和不確定性以及我們向美國證券交易委員會提交的定期文件中所述的風險和不確定性。這些文件可透過我們公司網站 BGInc.com 的投資者關係部分取得。

Today's call will begin with opening comments from Greg followed by a more-detailed review of quarterly results and an outlook discussion by Chris. After that, we will open up the call for questions.

今天的電話會議將首先由格雷格發表開場評論，然後由克里斯對季度業績進行更詳細的審查並討論前景。之後，我們將開放提問。

So at this time I will turn the call over to Barnes Group's President and CEO, Greg Milzcik.

因此，此時我將把電話轉給 Barnes Group 總裁兼執行長 Greg Milzcik。

Thank you, Bill, and good morning. Barnes Group's performance represents a solid start to 2012 and met our internal expectations for the first quarter. Given the workload drawn into the fourth quarter of last year, we were glad to see the opening quarter performance. These results allow us to affirm our 2012 full-year expectations of a record year for diluted earnings per share even before all of our end markets fully recover. This quarter's results are the first to be reported under the realigned global business structure of Aerospace, Industrial and Distribution.

謝謝你，比爾，早安。Barnes Group 的業績代表了 2012 年的良好開局，並達到了我們對第一季的內部預期。考慮到去年第四季的工作量，我們很高興看到第一季的表現。這些結果使我們能夠確認 2012 年全年攤薄每股收益創歷史新高的預期，甚至在我們所有終端市場完全復甦之前也是如此。本季的業績是重組後的航空航太、工業和分銷全球業務結構下首次公佈的業績。

For the quarter, net sales grew nearly 5% over last year, we had organic sales growth in all three operating segments and our end markets remain generally favorable. For our two segments of backlog, mainly Aerospace and Industrial, we saw 4% sequential growth in backlog and 21% growth year-over-year. Total backlog for Barnes Group is now over $600 million, up more than $100 million from the first quarter of last year, primarily driven by our Aerospace business.

本季淨銷售額比去年同期成長近 5%，我們所有三個營運部門的有機銷售額均實現成長，並且我們的終端市場總體上仍然有利。對於我們的兩個積壓訂單領域（主要是航空航太和工業），我們看到積壓訂單季增 4%，年增 21%。Barnes Group 的積壓訂單總額目前超過 6 億美元，比去年第一季增加了 1 億多美元，這主要是由我們的航空航太業務推動的。

With that as the general backdrop, let's discuss the performance of our three business segments in more detail. In Aerospace, both our OEM and aftermarket business achieved organic sales growth and orders exceeded revenues in the quarter by 17%. On the OEM side commercial aircraft production forecast over the next several years continued to show meaningful growth. We feel that we're well-positioned on key platforms in today's market, while working diligently to secure additional content on future platforms.

以此為大背景，讓我們更詳細地討論我們三個業務部門的表現。在航空航太領域，我們的 OEM 和售後市場業務均實現了有機銷售成長，本季訂單超過收入 17%。在原始設備製造商方面，未來幾年商用飛機產量預測將繼續呈現有意義的成長。我們認為我們在當今市場的關鍵平台上處於有利地位，同時努力確保未來平台上的更多內容。

Today, the Boeing 777 and 787 platforms remain the most meaningful to us, and we're encouraged by Boeing's production ramp up of these two aircraft, which is underway and anticipated to grow further over the next several years. In the future, we anticipate that the Rolls-Royce XWB engine for the Airbus A350 could likewise become a meaningful platform for us. We've continue to invest in a heightened level of new product introduction, or MPI, on work packages for this engine.

如今，波音 777 和 787 平台仍然對我們最有意義，我們對波音這兩架飛機的產量增加感到鼓舞，該生產正在進行中，預計在未來幾年將進一步增長。未來，我們預期空中巴士 A350 的勞斯萊斯 XWB 引擎同樣可以成為對我們有意義的平台。我們繼續在該引擎的工作包上投資更高水準的新產品推出（MPI）。

To provide the relative perspective on the overall MPI dynamic, today's efforts are roughly double of what we were doing just five years ago. Clearly, the foundation is being set today to support tomorrow's anticipated growth in our Aerospace OEM business. Our Aerospace aftermarket sales grew 13% year-over-year, driven mostly by increased levels of repair and maintenance activity. We continue to believe fleet demographics will contribute to growth in our Spare Parts business and that confidence is supported by market commentary, specifically around the CFM56 family of engines.

為了提供整體 MPI 動態的相對視角，今天的努力大約是五年前的兩倍。顯然，今天奠定的基礎是為了支持我們航空航天 OEM 業務明天的預期成長。我們的航空航太售後市場銷售額年增 13%，主要是由於維修和維護活動水準的增加。我們仍然相信機隊人口統計數據將有助於我們備件業務的成長，並且這種信心得到了市場評論的支持，特別是圍繞 CFM56 系列發動機的評論。

Turning to Industrial, sales growth in the first quarter benefited from strong levels of North American light vehicle production, and industry forecasts for the full year have improved to over 14 million units. Our European Manufacturing business collectively experienced modest growth in the quarter. However, we remain watchful of the European economic environment.

轉向工業領域，第一季銷量成長得益於北美輕型汽車生產的強勁水平，該行業對全年銷量的預測已提高至超過 1400 萬輛。我們的歐洲製造業務在本季度總體上經歷了溫和增長。不過，我們仍然關注歐洲經濟環境。

I want to provide a quick update on our facility expansion at our Nitrogen Gas Products business based in Sweden. We recently had a chance to visit the team there, and I can tell you they are making excellent progress on the expansion effort. The facility and added capacity are moving towards production readiness and we expect to see the benefits favorably impact our operating performance beginning in the second half of the year. Generally, we are pleased with the overall outlook of the end markets served by our Industrial segment. As many of these have not yet fully recovered, we believe this positions us well for future growth.

我想快速介紹一下我們位於瑞典的氮氣產品業務的設施擴建情況。我們最近有機會拜訪了那裡的團隊，我可以告訴您他們在擴張工作方面取得了出色的進展。該設施和增加的產能正在朝著生產準備的方向發展，我們預計從今年下半年開始，這些好處將對我們的營運表現產生有利的影響。總的來說，我們對工業部門所服務的終端市場的整體前景感到滿意。由於其中許多尚未完全恢復，我們相信這為我們未來的成長奠定了良好的基礎。

Our Distribution segment had a very good quarter. While sales increased 4% year-over-year, operating profit increased 43%, with margins improving 250-basis points to 9.3%. Our North American Distribution business saw daily sales average, or DSA, continue to improve. That's more than eight consecutive quarters of year-over-year DSA growth. Clearly, evident in the achieved margin expansion are the benefits of the investments we have made over the past several years to increase sales force productivity and improve supply-chain management.

我們的分銷部門有一個非常好的季度。雖然銷售額年增 4%，但營業利潤成長 43%，利潤率提高 250 個基點至 9.3%。我們的北美分銷業務的每日平均銷售額 (DSA) 持續改善。這已經連續八個季度以上 DSA 同比增長。顯然，我們在過去幾年中為提高銷售人員生產力和改善供應鏈管理而進行的投資所帶來的好處，已實現的利潤成長顯而易見。

To summarize, our first quarter results reinforce our expectations of strong performance in 2012, as our end markets begin to improve and remain favorable. Our balance sheet remains solid, providing us with the confidence to make the necessary investments in new products and processes to generate long-term profitable growth. Additionally, we remain focused on identifying value-enhancing acquisitions to expand our Company's breadth of product offerings and geographic reach with the goal of reaching shareholder value over the long term.

總而言之，隨著我們的終端市場開始改善並保持有利，我們第一季的業績強化了我們對 2012 年強勁業績的預期。我們的資產負債表保持穩健，使我們有信心對新產品和製程進行必要的投資，以實現長期獲利成長。此外，我們仍專注於尋找增值收購，以擴大公司產品供應的廣度和地理覆蓋範圍，以實現長期股東價值的目標。

Now, let me turn the call over to Chris for some of the financial details of the quarter. Chris?

現在，讓我將電話轉給克里斯，以了解本季的一些財務細節。克里斯？

Thanks, Greg.

謝謝，格雷格。

Let me start by highlighting the key points made on slide 2 on the earnings release supplement, which is available on our website. Net sales, operating margin, operating cash flow, and EPS from continuing operations all improved over prior-year results. I will walk you through a few of the details on the quarter, then wrap up with comments on our firm guidance, which is provided on slide 3. Starting with the top line, first-quarter sales increased 4.7% from last year to $303 million as a result of organic sales growth in each of our Business segments.

首先，我要強調投影片 2 中收益發布補充資料中提出的要點，該補充資料可在我們的網站上找到。淨銷售額、營業利益率、營業現金流量及持續經營業務每股收益均較上年同期改善。我將向您介紹本季度的一些細節，然後最後對幻燈片 3 中提供的我們的堅定指導意見進行評論。從營收開始，第一季銷售額較去年增長 4.7%，達到 3.03 億美元這是我們每個業務部門有機銷售成長的結果。

In our Aerospace segment, both the Aftermarket and OEM businesses experienced growth. Aftermarket was up 13% and OEM up 6%. Our Aerospace aftermarket business continues to see strong demand for repair and overhaul activity, and as Greg noted, we saw nice improvement in Aerospace backlog. While backlog is a helpful indicator, we would remind you that sales can be affected by a number of factors over time, such as insourcing decisions, material changes, production schedules, and volumes of specific programs.

在我們的航空航太領域，售後市場和 OEM 業務都實現了成長。售後市場成長 13%，OEM 成長 6%。我們的航空航太售後市場業務繼續看到對維修和大修活動的強勁需求，正如格雷格所指出的那樣，我們看到航空航太積壓工作有了很大的改善。雖然積壓是一個有用的指標，但我們提醒您，隨著時間的推移，銷售可能會受到許多因素的影響，例如內包決策、材料變更、生產計劃和特定項目的數量。

At Industrial, first-quarter sales increased 3.5%, driven in part by strength in our industrial manufacturing businesses based in the US. The results reflect continuing improvement in the transportation end market, including automotive, which has been stronger than originally forecasted. Collectively for our European Manufacturing Industrial businesses, sales were up modestly in the first quarter and orders were up 19% sequentially, as the European economic environment has not had a meaningful negative impact.

在工業方面，第一季銷售額成長了 3.5%，部分原因是我們位於美國的工業製造業務的實力。此結果反映出包括汽車在內的運輸終端市場的持續改善，其表現強於最初的預測。就我們的歐洲製造業工業業務而言，第一季銷售額小幅成長，訂單環比成長 19%，因為歐洲經濟環境並未產生重大負面影響。

However, we are seeing relative softness in domestic European auto production and we will continue to monitor trends in that market. In our Distribution segment, first-quarter sales were up 4%, driven by continued strength in our North American distribution end markets. So, for BGI overall, we've seen an improvement in the end markets we serve. In particular, expansion in both Aerospace aftermarket and OEM, as well as North American auto production, benefits our manufacturing businesses and positions the Company for sustained revenue growth.

然而，我們看到歐洲國內汽車生產相對疲軟，我們將繼續關注該市場的趨勢。在北美分銷終端市場持續強勁的推動下，我們的分銷部門第一季銷售額成長了 4%。因此，對於華大基因整體而言，我們看到我們服務的終端市場有所改善。特別是，航空航太售後市場和 OEM 以及北美汽車生產的擴張有利於我們的製造業務，並使公司能夠實現持續的收入成長。

Operating income in the first quarter increased 7.5% to $33 million from last year, while operating margins improved 30-basis points to 10.9%. On a continuing ops basis, income was up 14% and EPS likewise increased 14% to $0.41 per diluted share. At Aerospace, operating profit increased 4%, primarily driven by the profit impact of higher sales volumes, which was partially offset by increased management fees related to our aftermarket revenue sharing programs and unfavorable sales mix. Generally, when we think about our Aerospace segment, we would expect margins to be more -- customarily be in the mid to high teens and our full-year outlook is consistent with that expectation.

第一季營業收入較去年成長 7.5%，達到 3,300 萬美元，營業利潤率提高 30 個基點，達到 10.9%。在持續營運的基礎上，營收成長了 14%，每股盈餘也同樣成長了 14%，達到稀釋後每股 0.41 美元。在航空航天部門，營業利潤增長了 4%，主要是由於銷量增加對利潤的影響，但部分被與我們的售後收入分享計劃和不利的銷售組合相關的管理費增加所抵消。一般來說，當我們考慮我們的航空航天部門時，我們預計利潤率會更高——通常在十幾歲左右，我們的全年前景與這一預期一致。

Operating profit at Industrial decreased 8%. The decline was primarily a result of higher costs associated with investments in new product introductions, primarily within our nitrogen gas products and Hanggi businesses, continued outsourcing of certain manufacturing processes in our nitrogen gas products business, and an unfavorable sales mix. Partially offsetting these declines was the profit from higher sales.

工業營業利潤下降 8%。下降的主要原因是與新產品引進投資相關的成本增加（主要是在我們的氮氣產品和 Hanggi 業務中）、我們的氮氣產品業務中某些製造流程的持續外包以及不利的銷售組合。銷售額增加帶來的利潤部分抵消了這些下降。

Operating margins declined in the quarter as incremental costs for MPI programs weighed on our results. Similar to Aerospace, these investments serve to fuel our anticipated growth and have the potential to significantly drive revenues over the next several years. Additionally, as we think about margins for this segment, a low double-digit margin expectation is what we envision over the near term.

由於 MPI 計劃的增量成本影響了我們的業績，本季營業利潤率有所下降。與航空航太類似，這些投資有助於推動我們的預期成長，並有可能在未來幾年大幅增加收入。此外，當我們考慮該細分市場的利潤率時，我們預計近期將實現較低的兩位數利潤率預期。

And as Greg mentioned, our Distribution segment had a very good quarter. Operating profit increased 43% from higher sales volumes and a lower cost structure, and was partially offset by an unfavorable sales mix. Our sales productivity efforts within Distribution should drive margins even higher over time, but for the near term, a high single-digit margin expectation is anticipated.

正如格雷格所提到的，我們的分銷部門有一個非常好的季度。由於銷量增加和成本結構降低，營業利潤增長了 43%，但部分被不利的銷售組合所抵消。隨著時間的推移，我們在分銷領域的銷售生產力努力應該會推動利潤率更高，但在短期內，預計利潤率將達到高個位數。

As for the tax rate, the Company's effective tax rate for the first quarter of 2012 was 22.9% compared to 24.2% in the first quarter of 2011 and 21.7% for the full-year 2011. The increase in the first-quarter 2012 effective tax rate over the 2011 full-year rate was driven by the projected shift in income to higher tax jurisdictions, partially offset by a decrease in the planned repatriation of a portion of current-year foreign earnings to the US.

稅率方面，本公司2012年第一季的有效稅率為22.9%，而2011年第一季為24.2%，2011年全年為21.7%。2012 年第一季實際稅率較 2011 年全年稅率有所上升，原因是預計收入將轉移至稅收較高的管轄區，但部分被計劃將部分當年海外收入匯回國內的減少所抵消。美國。

With regard to share count, our first-quarter average diluted shares outstanding were 55.5 million, which was slightly below the prior-year share count. We were an active buyer of our stock in the first quarter. We repurchased 400,000 shares under the authority of the board's 2011 repurchase program of a five million shares. At the end of March 2012, we have 4.1 million shares remaining under this program and we may choose to repurchase additional shares on occasion during the year.

就股票數量而言，我們第一季攤薄後的平均已發行股票數量為 5,550 萬股，略低於去年同期。第一季我們是我們股票的積極買家。根據董事會 2011 年回購計畫 500 萬股，我們回購了 40 萬股。截至 2012 年 3 月底，該計劃下我們還剩 410 萬股，我們可能會選擇在年內不時回購額外的股票。

Turning now to cash flow. During the first quarter operating activities generated cash flow of $6.3 million versus cash usage of $4.7 million last year, reflecting overall better operating performance and a continued focus on working capital management. This quarter's free cash flow reflects a lower level of CapEx as compared to last year, which is simply a function of timing as we still expect full-year CapEx in the range of $45 million to $50 million, up from $37 million in 2011.

現在轉向現金流。第一季營運活動產生的現金流為 630 萬美元，而去年的現金使用量為 470 萬美元，反映出整體更好的營運績效以及對營運資本管理的持續關注。本季的自由現金流反映了與去年相比較低的資本支出水平，這只是時間的函數，因為我們仍然預計全年資本支出在4500 萬美元至5000 萬美元之間，高於2011 年的3700 萬美元。

Let's now revisit our 2012 financial guidance on slide 3 of our supplement. We continue to expect 2012 sales to grow 6% to 9% with operating margins expanding to approximately 12%. EPS from continuing operations in the range of $1.78 to $1.93 per diluted share, up 9% to 18% over 2011, and for the full year we expect free cash flow conversion of greater than 90%.

現在讓我們回顧一下補充資料第 3 投影片中的 2012 年財務指引。我們繼續預期 2012 年銷售額將成長 6% 至 9%，營業利潤率將擴大至約 12%。持續經營業務攤薄後每股收益為 1.78 美元至 1.93 美元，比 2011 年增長 9% 至 18%，我們預計全年自由現金流轉換率將超過 90%。

As Greg mentioned in his opening remarks, 2012 began much like we anticipated and our outlook for the year remains consistent with the guidance we provided at February, so the key factors in our 2012 guidance range remain. For the upside, we would benefit from a robust aerospace aftermarket, better volume leverage or flow through on increased sales, and stronger productivity gains, given our focus on lean and quality. On the downside, we would negatively be impacted by a slowdown in the global economy, a steeper-than-anticipated decline in European industry levels, including automotive, and commodity price inflation that may be difficult for us to offset, either through pricing actions or productivity initiatives.

正如格雷格在開場白中所提到的，2012 年的開局與我們的預期非常相似，我們對今年的展望與我們 2 月提供的指導保持一致，因此我們 2012 年指導範圍中的關鍵因素仍然存在。從好的方面來看，鑑於我們對精益和品質的關注，我們將受益於強大的航空航太售後市場、更好的銷售槓桿或銷售增加的流量以及更強勁的生產力提升。不利的一面是，我們可能會受到全球經濟放緩、歐洲工業水準（包括汽車和大宗商品價格通膨）下降幅度超出預期的負面影響，而我們可能很難透過定價行動或定價措施來抵銷這些影響。生產力舉措。

So, to close my remarks, our first-quarter results generated year-over-year improvement in sales, operating margin and earnings per share, and have positioned our operations to accelerate growth and capitalize on new opportunities. With our achieved operating results, our performance expectations for 2012 and the financial flexibility provided by the strength of our balance sheet we feel good about our ability to deliver another solid year in 2012.

因此，在我的發言結束時，我們第一季的業績在銷售額、營業利潤率和每股收益方面實現了同比改善，並使我們的業務能夠加速成長並利用新機會。憑藉我們所取得的經營成果、2012 年的業績預期以及資產負債表實力所提供的財務彈性，我們對 2012 年再創佳績的能力感到滿意。

Operator, we will now open the call for questions.

接線員，我們現在開始提問。

(Operator Instructions) And your first question comes from the line of Christopher Glynn representing Oppenheimer. Please proceed.

（操作員說明）您的第一個問題來自代表奧本海默的克里斯托弗·格林（Christopher Glynn）。請繼續。

Thanks, good morning.

謝謝，早安。

Good morning, Chris.

早上好，克里斯。

Greg, you mentioned that MPI efforts at Aerospace doubled five years ago, what do you think about the perspective hit rate visibility payback on those efforts?

Greg，您提到五年前 MPI 在航空航太領域的努力翻了一番，您對這些努力的命中率可見度回報前景有何看法？

That is a great question because I torture our folks about that all the time, as well. I don't think we've quantified it quite to that extent. We have very good success tentatively -- and I say tentatively -- on the A350 because as the preproduction goes through and things are added and taken away, depending on design changes and all the rest of those things, so when we get closer to aircraft launch it's going to be -- we believe it will be a substantial platform and we will probably announce content on that in a couple of years. Unfortunately, in this type of business you have to do a lot of expenses, many years prior to when the program really generates a lot of activity. An example I use the GE 9115, which is now our largest program, we launched it in 2001, we didn't see serious revenue until 2004, 2005, and the same thing is happening now, so this bodes well looking out in multiple years. I know if you're a short-term shareholder that might not be that important, but it's really important for this type of business.

這是一個很好的問題，因為我也一直在折磨我們的家人。我認為我們還沒有將其量化到那個程度。我們在A350 上暫時取得了非常好的成功——我說是暫時的——因為隨著預生產的進行，根據設計的變化和所有其他的事情，一些東西會被添加和刪除，所以當我們越我們來越接近飛機時相信它將成為一個重要的平台，我們可能會在幾年內宣布有關該平台的內容。不幸的是，在這種類型的業務中，您必須在計劃真正產生大量活動之前的許多年裡付出大量費用。舉個例子，我使用GE 9115，它現在是我們最大的項目，我們在2001 年推出它，直到2004 年、2005 年我們才看到可觀的收入，現在同樣的事情正在發生，所以這預示著未來幾年的前景良好。我知道，如果您是短期股東，這可能不那麼重要，但對於這類業務來說，這確實很重要。

Okay. Just looking at the current mix impacts and the revenue trends, if it looks like it might make the midpoint of the guidance a little bit more of a challenge than at the base case, is that fair or what am I missing maybe?

好的。只要看看當前的組合影響和收入趨勢，如果看起來可能會使指南的中點比基本情況更具挑戰性，這是否公平，或者我可能錯過了什麼？

Well, that's how we came up with the guidance to begin with is, you're right, it could go either way depending on what happens. Aftermarket, of course, is a short-cycle business. Most of the OEs reported -- Pratt and Whitney, GE reported a very slow start to the year. I don't think that's indicative of the entire year and if it continues to improve as it did last year, I think we can head towards the upper end, if it doesn't then mid, if something goes bad, Europe or whatever, then we'll be at the lower end. But I think we feel pretty confident that we're in the right range right now.

嗯，這就是我們最初提出指導的方式，你是對的，根據發生的情況，它可能會發生任何一種情況。當然，售後市場是一個短週期的業務。大多數業者報告說，普惠公司、通用電氣報告今年開局非常緩慢。我不認為這代表了全年，如果它像去年一樣繼續改善，我認為我們可以走向高端，如果沒有那麼中間，如果事情變壞，歐洲或其他地方，那麼我們就會處於低端。但我認為我們非常有信心，我們現在處於正確的範圍內。

Okay, and then last one. The outsourcing or contract manufacturing in Industrial, is that gone in the second half as Sweden comes on line?

好的，然後是最後一張。工業領域的外包或合約製造，是否會隨著瑞典的上線而在下半年消失？

It looks that way. We were -- we toured the Swedish operation I think about three or four weeks ago -- I forgot -- making very good progress. They had a fairly mild winter and we were able to get a lot of construction done there. They've already poured the concrete floor, which is one of the final steps, so we feel pretty confident that we'll be able to reduce our expenses there in the back half of the year. Capital equipment was drawn into the fourth quarter of last year so everything's tracking nicely.

看起來是這樣。我們——我們參觀了瑞典的業務，我記得是三、四個星期前——我忘了​​——取得了非常好的進展。他們度過了一個相當溫和的冬天，我們能夠完成許多建築工作。他們已經澆築了混凝土地板，這是最後的步驟之一，因此我們非常有信心在今年下半年減少那裡的費用。資本設備於去年第四季投入使用，因此一切進展順利。

Okay, thank you.

好的謝謝。

Your next question comes from the line of Edward Marshall representing Sidoti & Company. Please proceed.

您的下一個問題來自代表 Sidoti & Company 的 Edward Marshall。請繼續。

Hi, guys.

嗨，大家好。

Morning.

早晨。

Morning. First question's on the Distribution business. The contribution margin over the last few quarters have been a very good and I seem to remember back in 2007 you were on your way to 12% in North America, 10% for the mix of the business and if so, is 12% somewhere that you're actually headed in distribution, or has the business structurally change little bit?

早晨。第一個問題是關於分銷業務的。過去幾季的邊際貢獻率非常好，我似乎記得 2007 年，北美地區的邊際收益為 12%，業務組合為 10%，如果是這樣，那麼在某個地方是 12%。您實際上正在走向分銷領域，還是業務結構發生了一些變化？

I think short term we're forecasting a high single digits. I think this business structurally is capable of low double digit.

我認為短期內我們的預測是高個位數。我認為這項業務在結構上能夠實現低兩位數的成長。

Okay. And then on the Industrial business, now that you've broke out different businesses, can you explain the drag that you had in the nitrogen gas products and the restraints from the capacity restraints that you had there, maybe you can quantify for us?

好的。然後在工業業務上，既然您已經突破了不同的業務，您能否解釋一下您在氮氣產品中受到的拖累以及您在那裡的產能限制的限制，也許您可以為我們進行量化？

I don't think we've quantified it historically, but we mentioned last year that we had higher surge of demand than we expected, which required us to outsourcing fair amount of workload which added up to some significant cost. I don't add brick and mortar very quickly, but in this case it was an absolute necessity and I think that you'll see margins improve in the back of the year and that's just one of the elements. Some of the other elements are things that we're doing with new product introduction, the new acquisition that we had last year of a product line for machine and vehicles, that's another thing that impacted our margins at this quarter. And I think as those programs mature, you're going to see expanded operating margin. So getting into low double digits as effective is well within the realm when we take into account these specific investments that we're making.

我認為我們歷史上沒有對其進行量化，但我們去年提到，我們的需求激增超出了我們的預期，這要求我們外包相當多的工作量，這增加了一些重大成本。我不會很快添加實體，但在這種情況下，這是絕對必要的，我認為你會在今年下半年看到利潤率的提高，而這只是其中之一。其他一些因素是我們在新產品推出方面所做的事情，我們去年新收購了機器和車輛產品線，這是影響我們本季利潤的另一件事。我認為，隨著這些計劃的成熟，您將看到營業利潤率的擴大。因此，當我們考慮到我們正在進行的這些具體投資時，達到低兩位數的有效值完全在範圍內。

Okay. And I think, Chris, did you break out the -- did you say that you were looking for double-digits in that business for operating margins?

好的。我想，克里斯，你是否說過——你是否說過你正在該業務中尋找兩位數的營業利潤率？

Industrial, yes. In the near term we would expect low double-digit margins in that business, that's right.

工業，是的。在短期內，我們預計該業務的利潤率將達到兩位數，這是正確的。

So you're running well below that now. In the -- I'm assuming this is back-half loaded and that is a portion of the cash capacity increases, as well, because you did have a negative contribution margin in the quarter?

所以你現在的運行速度遠低於這個值。在--我假設這是後半負載，這也是現金容量增加的一部分，因為您在本季度確實有負貢獻邊際？

Exactly. And when we -- we tried to profile. If you recall, historically we did a bunch of comparisons and we were 55/45 first half, back half. Now we're closer to 50/50, although this first quarter is somewhat of an anomaly because of the draw-ins for Q4, et cetera, so I think that the back half will be slightly higher than the front half this year.

確切地。當我們嘗試進行分析時。如果你還記得的話，歷史上我們做了很多比較，上半場和後半場我們都是 55/45。現在我們已經接近 50/50，儘管由於第四季度的拉動等原因，第一季有些反常，所以我認為今年後半部分將略高於前半部分。

Okay. Finally, the Aerospace sales are down over the last two quarters, the margin wasn't up to par, what happened? Obviously, in the quarter, and is that going to be something that's going to be resolved going forward? I think you said 13.5% on the aftermarket business. I don't know, I think -- did you say 8.5% on the OEM, I missed that portion?

好的。最後，過去兩季航空航太銷售額下降，利潤率未達標準，發生了什麼事？顯然，在本季度，這個問題會在未來得到解決嗎？我想你說的是售後業務的 13.5%。我不知道，我想——你是說 OEM 上的 8.5%，我錯過了那部分嗎？

Yes, OEM was up 6%. We look at it as a one-time mix issue and that's why we're still forecasting mid to high-teens guidance for the year. Largely January and February in some of the spares business was very low due to the draw-in into Q4, so that'll correct itself. We think our Aerospace story for the next several years is very strong and the backlog is just incredible. The backlog in Aerospace, out of the total $600 million-plus is $490 million-plus of that.

是的，OEM 成長了 6%。我們將其視為一次性混合問題，這就是為什麼我們仍然預測今年中高青少年指導。由於進入第四季度，一月和二月的一些備件業務基本上非常低，因此這種情況會自行修正。我們認為未來幾年我們的航空航太故事非常強勁，積壓的訂單數量令人難以置信。航空航太領域的積壓訂單總額超過 6 億美元，其中 4.9 億美元以上。

$490 million, yes. So you're up pretty significantly from where you were in 3Q, which I think was $355 million, is that right?

4.9 億美元，是的。因此，與第三季相比，您的收入增長了相當大，我認為是 3.55 億美元，對嗎？

Yes, exactly. What we're looking at is, this is telegraphing what's going to happen in the future and we're -- our backlog can stretch anywhere from six months to 18 months, depending on the type of product and the customer, et cetera. So I'm pretty happy. I think the capacity planning that we've done there is pretty good, I think that we know most of the parts now in the sense that there's not a big learn-out that's required. It is lower margin than the aftermarket but we expect the aftermarket, while slow in the first quarter compared to last year, it's still going to be a robust growth period for the next several years.

對，就是這樣。我們所關注的是，這預示著未來將會發生什麼，我們的積壓工作可能會持續 6 個月到 18 個月，具體取決於產品類型和客戶等。所以我很高興。我認為我們在那裡所做的容量規劃非常好，我認為我們現在已經了解了大部分內容，不需要大量的學習。它的利潤率低於售後市場，但我們預計售後市場雖然第一季與去年相比放緩，但在未來幾年仍將是一個強勁的成長期。

That's a 38% sequential increase and that's pretty significant.

環比增長了 38%，非常顯著。

Yes.

是的。

What engine platform's driving that, is that --?

是什麼引擎平台驅動的，對－？

A lot of it is 777, there's also in there a 787 and A350.

很多是777，還有787和A350。

And then finally, was there anything that was -- did you have delayed orders, do you delayed shipments, was there any kind of hesitation? It just doesn't -- it seems to be trending slightly lower than what I would have anticipated.

最後，是否有任何事情 - 您是否延遲了訂單，是否延遲了發貨，是否有任何猶豫？它只是沒有——它的趨勢似乎略低於我的預期。

No, it was all pull-in in Q4. If you recall Q4, Q4 was -- if I recall, it was an all-time record. Fourth quarter it was very unusual for us to have that type of performance and that happens. We really anticipated this first quarter to be just like it is, simply because the pull-in into Q4.

不，這一切都是在第四季發生的。如果你還記得第四季度，第四季是——如果我沒記錯的話，這是一個歷史記錄。第四季我們能有這樣的表現是很不尋常的，而且這種情況確實發生了。我們確實預計第一季會像現在這樣，只是因為進入了第四季。

Actually I think I remember you saying that there was a pull-in. Do you expect the 2Q to jump back up to what you would assumed on the run rate that you were heading?

事實上我想我記得你說過有一個拉入。您是否預期第二季會跳回您對預期運行率的假設？

Yes, it'll be mid to high teens for an ROF and we're going to see continued growth going forward.

是的，ROF 的價格將是中高十幾歲，我們將看到未來的持續成長。

Okay, thanks, guys.

好的，謝謝大家。

Your next question comes from the line of Matt Summerville representing KeyBanc Capital. Please proceed.

您的下一個問題來自代表 KeyBanc Capital 的 Matt Summerville。請繼續。

Morning. Just back to the Aerospace mix, I guess it's still unclear to me what the issue was in the quarter. If aftermarket was up 13%, OE up 6%, is this a programmatic-specific mix issue?

早晨。回到航空航天組合，我想我仍然不清楚本季的問題是什麼。如果售後市場上漲 13%，OE 上漲 6%，這是否是一個特定於程序的組合問題？

Yes, primarily spares.

是的，主要是備件。

So was there initial then provisioning on the 787 and 747[A] that you would've benefited from?

那麼 787 和 747[A] 上的初始配置是否能讓您受益？

No, no, this was basically the RSP drawing into Q4. If you recall, in the last quarter we talked about the surge of spares purchases due to the pricing increase that was triggered November 4 and if they took delivery before the end of the year they could bring that in, so in anticipation of higher maintenance in 2012 there was a spike.

不，不，這基本上是進入第四季度的 RSP。如果您還記得，在上個季度，我們談到了由於11 月4 日觸發的價格上漲而導致備件採購激增，如果他們在年底前收到交貨，他們可以將其帶入，因此預計維護費用會更高2012 年出現了高峰。

Sure. I guess I get the sequential decline in Aerospace margins, I'm having trouble reconciling that to year over year why OE grows single digits, aftermarket double, margins down 50 basis points?

當然。我想我得到了航空航太利潤率的連續下降，我很難將這一點與去年同期相協調，為什麼 OE 成長個位數，售後市場成長兩倍，利潤率下降 50 個基點？

I think it'll restore itself quickly. There was no one-time charge that was significant, it was primarily the mix and some investments we're continuing to make, but I think throughout the year you're going to see continued strong growth in the Aerospace.

我想它會很快恢復的。沒有一項重大的一次性費用，這主要是我們繼續進行的組合和一些投資，但我認為全年您將看到航空航天領域的持續強勁增長。

As you think about your new product development spend or introduction spend, is there any way to frame that up in terms of dollars? You mentioned doubling over five years, there's not a lot of context behind that, I guess, so what number are you going from and to and at what point does that peak out and you start to get to better leverage on that?

當您考慮新產品開發支出或介紹支出時，有沒有什麼方法可以用美元來衡量？你提到五年內翻倍，我猜這背後沒有太多背景，那麼你的數字是多少，在什麼時候達到峰值，你開始更好地利用它？

First of all, one of the things that we don't do here is program accounting, which I think is a very good. Anyone who's been involved in a program accounting scheme knows that there's all sorts of pitfalls associated with it, so we take the expense as we go along. There's two aspects of this. First of all, we're working at that internally as far as trying to quantify some of those things but at the same time, when you're dealing with literally thousands of part numbers across the Company, it's a very difficult thing to do it effectively. What we've been doing is basically building it into our forecast as an operating expense. When I look at it going forward, with the number of platforms that are out there, the geared turbofan, the LEAP-X, et cetera, I hope we're going to have new product introduction costs for some time. Now, it'll pay off sometime in the future, but it won't be in the next several years.

首先，我們在這裡不做的事情之一是程序會計，我認為這是非常好的。任何參與過計劃會計計劃的人都知道，其中存在各種各樣的陷阱，因此我們在實施過程中承擔費用。這有兩個面向。首先，我們正在內部努力量化其中一些事情，但與此同時，當您處理整個公司的數千個零件號碼時，這是一件非常困難的事情有效地。我們一直在做的基本上是將其作為營運費用納入我們的預測中。當我展望未來時，隨著齒輪傳動渦輪風扇發動機、LEAP-X 等平台數量的增加，我希望我們將在一段時間內承擔新產品推出成本。現在，它將在未來某個時候得到回報，但不會在未來幾年內得到回報。

Sticking with the OE versus aftermarket, built into your full-year plan, how -- what sort of growth rate do you see in your OE business and has the content on 777, 787 or 747 changed since -- over the last quarter or two since you last updated it?

堅持將原配設備與售後市場納入您的全年計劃中，在過去一兩個季度中，您認為原配設備業務的增長率如何，以及 777、787 或 747 的內容有何變化自從你上次更新以來？

No, the content has not changed and we're looking at mid to upper-digit growth rate and I think the backlogs justify that.

不，內容沒有改變，我們正在尋找中上位數的成長率，我認為積壓的情況證明了這一點。

Okay. With regards to distribution, the margin performance looked excellent. I guess I'm curious as to, you compare your top line to some of the other distributors out there, of kind of a fraction of their organic growth, and I understand there's scale issues and I get that. But I guess I'm curious if that business is tracking to plan from an operational margin standpoint, which it sounds like it is, is that business tracking to plan on the top line and if not, what are you doing to get it on plan?

好的。在分配方面，利潤率表現看起來非常出色。我想我很好奇，你將你的營收與其他一些分銷商進行比較，這只是他們有機成長的一小部分，我知道存在規模問題，我明白了。但我想我很好奇該業務是否正在從營運利潤的角度跟踪計劃（聽起來確實如此），該業務是否正在跟踪計劃頂線，如果沒有，您正在做什麼來使其按計劃進行？

First of all, we're really happy with the Distribution performance. A lot of it has been investments that we have made over several years and it's always nice to see those investments come to fruition. Some of it we're actually intentionally attriting work. We have gracefully exited about $10 million worth of workload that we didn't see as a valuable to us. We love customers but someone else is going to love them more than we did. So we're really trying to be a profit-centric focus on the Distribution business. We expect to continue to see growth that mimics Industrial growth overall, but the contribution margins to us is more important. So one of the things, if you recall, we found in our research that not all segments appreciate the vendor-managed inventory model as much as others and that's part of why we're shifting our focus somewhat. I think we'll experience lower than our -- the equivalent distributors for the balance of the year.

首先，我們對發行版的表現非常滿意。其中許多是我們多年來所做的投資，很高興看到這些投資取得成果。其中一些實際上是我們故意消耗的工作。我們優雅地退出了價值約 1000 萬美元的工作量，但我們認為這些工作量對我們來說沒有價值。我們愛顧客，但其他人會比我們更愛他們。因此，我們確實在努力以利潤為中心，並專注於分銷業務。我們預計將繼續看到模仿工業整體成長的成長，但貢獻邊際對我們來說更重要。因此，如果您還記得的話，我們在研究中發現，並非所有細分市場都像其他細分市場那樣欣賞供應商管理的庫存模型，這就是我們稍微轉移重點的部分原因。我認為我們在今年剩餘時間的體驗將低於我們的同等經銷商。

Greg, in that context, as you're making that shift, is this more away from large national accounts, which was a real big push for Barnes a few years back, or is this driving more volume through that type of customer? Can you give a little color on that?

格雷格（Greg），在這種情況下，當你做出這種轉變時，這是否更遠離大型國民帳戶（幾年前這對巴恩斯來說是一個真正的巨大推動力），還是這會透過此類客戶推動更多交易量？你能給點顏色嗎？

You have a great memory and you're right. Years ago we had been pushing large customer accounts and what we found was they were not working for us because one of those beauties of our business is the large sales base that we have out here, the talented sales reps that are able to find the niche markets and penetrate them in service areas that do not compete with the economies of scale associated with some of the catalogue houses et cetera. So that was a very good observation.

你的記憶力很好，你是對的。幾年前，我們一直在推動大型客戶帳戶，但我們發現它們並不適合我們，因為我們業務的優點之一是我們在這裡擁有龐大的銷售基礎，才華橫溢的銷售代表能夠找到利基市場市場並滲透到不與某些目錄公司等相關的規模經濟競爭的服務領域。所以這是一個非常好的觀察。

Thank you for the color.

謝謝你的顏色。

Your next question comes from the line of Peter Lisnic representing Baird. Please proceed.

您的下一個問題來自代表貝爾德的彼得·利斯尼克 (Peter Lisnic)。請繼續。

Good morning, gentlemen.

早安，先生們。

Good morning, Peter.

早安，彼得。

Morning, Pete.

早安，皮特。

I guess first question is to go back to the Aero mix question, is any part of that just a function of the RSP management fees being higher in the first quarter and then maybe falling off in the back part of the year?

我想第一季度是回到航空混合問題，這是否只是 RSP 管理費在第一季較高，然後可能在今年下半年下降的函數？

It does have an effect. There is some in there because of there was some year-over-year impact.

它確實有效果。其中有些是因為存在一些同比影響。

Okay. Any way of giving us an order of magnitude of what the impact might be?

好的。有什麼辦法可以告訴我們可能產生的影響的數量級嗎？

I would love to, but I've been reminded that we have a nondisclosure agreement and that would definitely violate that.

我很樂意這樣做，但有人提醒我，我們有保密協議，這肯定會違反協議。

Okay, fair enough. And then, if I look at the outlook -- the sales growth outlook for the full year plus 6% to 9%, the first quarter up 5%, can you give us the puts and takes of what accelerates or decelerates from the first quarter?

好吧，很公平。然後，如果我看一下前景 — 全年銷售成長前景加 6% 至 9%，第一季成長 5%，您能給我們看一下第一季成長或放緩的情況嗎？？

I think they're -- we expect them all to grow. Right now, when I look at each of the markets I don't see much. The backlog is healthy. I think Aerospace, both aftermarket and OE, will continue to improve. I think Industrial manufacturing has expanded now for 34-consecutive months and I see nothing that says anything in the way of that. When I look at European -- our European businesses and we just toured all of our European businesses into deep dive, a lot of their work is export driven and we're still seeing a positive trend, but it's not robust and we're kind of cautious there. But other than that, I see a lot of green in our end market conditions.

我認為他們——我們希望他們都能成長。現在，當我觀察每個市場時，我看不到太多。積壓情況良好。我認為航空航天，無論是售後市場還是原廠設備，都將繼續改善。我認為工業製造業已經連續 34 個月擴張，我沒有看到任何跡象表明這一點。當我觀察歐洲——我們的歐洲業務時，我們剛剛深入考察了所有歐洲業務，他們的許多工作都是出口驅動的，我們仍然看到積極的趨勢，但它並不強勁，我們很友善那裡的謹慎。但除此之外，我在我們的終端市場狀況中看到了很多綠色發展。

Okay, all right. And then just to close up that Euro point, it sounded -- if I got the number right -- up 19% sequentially, that was an order rate number for Europe, correct?

好吧，好吧。然後，為了結束歐元點，聽起來——如果我的數字正確的話——連續上漲了 19%，這是歐洲的訂單率數字，對嗎？

That's right, that's correct.

沒錯，沒錯。

And then really the only softness you're seeing is on the domestic auto production in the business, correct?

那麼，您真正看到的唯一疲軟之處是國內汽車生產，對嗎？

In Europe, yes.

在歐洲，是的。

Okay. And then can you maybe give us a feel as to what your operating folks or sales folks are feeling cautious about? Is it China, is it the export business, or what --?

好的。那麼您能否讓我們了解一下您的操作人員或銷售人員對什麼感到謹慎？是中國，是出口業務，還是什麼──？

No, it's not China, it's primarily local in Europe. You talk to some of the other businesses that are dominant European output and there's a lot of caution. There's a lot of chaos still. I think that the euro is going to be some time before it settles down and some of the financial crisis issues are resolved, so I think that's driving a lot of hesitancy on the part of European businesses.

不，這不是中國，它主要是歐洲本地的。當你與其他一些在歐洲產出占主導地位的企業交談時，你會發現他們非常謹慎。仍然有很多混亂。我認為歐元穩定下來以及部分金融危機問題得到解決還需要一段時間，所以我認為這讓歐洲企業產生了極大的猶豫。

Okay, fair enough. And then, Chris, think the [byline], which sounded like share buybacks, still an important use of capital, I was just wondering if you could maybe comment on the acquisition environment by business and what you see out there in terms of pipeline?

好吧，很公平。然後，克里斯，想想[署名]，聽起來像是股票回購，仍然是資本的重要用途，我只是想知道您是否可以評論一下業務的收購環境以及您在渠道方面看到的情況？

I will make that comments. First, I'll take -- let Chris talk about share buyback.

我將發表這樣的評論。首先，我讓克里斯談談股票回購。

Yes, in the quarter we were an active buyer, Pete, and as a mentioned in opening comments, we bought back 400,000 shares and we will, on occasion, will be in the market buying back stock.

是的，在這個季度我們是一個活躍的買家，Pete，正如在開場評論中提到的，我們回購了 400,000 股，有時我們會在市場上回購股票。

As far as our -- the M&A climate it is better and I think that we're seeing more and more quality businesses coming across our desks. We're very active in looking for an acquisition candidate, we're very disciplined in our approach, we have a very defined set of criteria for it, and we think that we have a balance sheet that can handle it easily right now. And while I won't comment on any specific area, I will say that we're definitely in the market. The prices, Aerospace is pretty pricey because everyone's forward pricing for the ramp up of the various programs, but in general the Industrial seems to be -- there seems to be some nice businesses out there.

就我們的併購氛圍而言，情況更好了，我認為我們看到越來越多的優質企業出現在我們的辦公桌上。我們非常積極地尋找收購候選者，我們的方法非常嚴格，我們有一套非常明確的標準，我們認為我們現在的資產負債表可以輕鬆處理它。雖然我不會對任何特定領域發表評論，但我會說我們肯定在市場上。航空航太的價格相當昂貴，因為每個人都為各種項目的增加而進行遠期定價，但總的來說，工業似乎 - 那裡似乎有一些不錯的企業。

And can you give us a flavor for bias as to size -- small, large?

能給我們介紹一下關於尺寸的偏見嗎——小，大？

Oh, I don't want to comment on that, but I think good sized business is better than a whole bunch of little businesses.

哦，我不想對此發表評論，但我認為規模較大的企業比一大堆小企業要好。

Okay.

好的。

I think they're almost as much work and they don't move the needle near as much.

我認為他們的工作量幾乎是一樣多，但他們的進展卻沒有那麼大。

Okay. All right, that's very helpful, thanks for your time.

好的。好的，這非常有幫助，謝謝您的寶貴時間。

Thank you, Pete.

謝謝你，皮特。

Your next question comes from the line of Fred Buonocore representing Rodman & Renshaw. Please proceed.

您的下一個問題來自代表 Rodman & Renshaw 的 Fred Buonocore。請繼續。

Morning.

早晨。

Yes, good morning.

是的，早安。

Good morning, Fred, welcome back.

早安，弗雷德，歡迎回來。

Yes, thank you, glad to be back. Just wanted to -- in the spirit of being back, can you give, at least me or us, a refresher on -- you talk about new product development in the Industrial side of the business, can you give us a little bit more color on exactly what you're pursuing there in terms of types of product and markets that you may be trying to penetrate there?

是的，謝謝你，很高興回來。只是想 - 本著回來的精神，你能給我或我們回顧一下 - 你談論工業方面的新產品開發業務，你能給我們多一點色彩嗎就您可能試圖滲透的產品類型和市場而言，您到底在那裡追求什麼？

Sure, I'll go specifically to the product line acquisition we made last year, I believe it was in the third quarter. It was machine and vehicles. It's an extension of things that we're currently doing with the nitrous gas products business. In the machine and vehicles, the large suspension systems for earth movers or military vehicles, et cetera, have similar piston and cylinder structure that we do in nitrous gas cylinders and we had identified that as a specific area to expand into. So the acquisition gave us a small product line foothold and now we're making the capital investment, as well as the overhead costs associated with making that investment, into that particular area. Another area that we're expanding heavily into is gas injection, which is a technology that is evolving and it's growing very rapidly. We're doing some pretty revolutionary processes in order to get these gas direct injected nozzles produced at a different process, but I won't tell you about the process because it's somewhat proprietary. That's another large capital investment, as well as cost investment, in the Industrial area. And that's just a couple; we have a number of them going on.

當然，我將專門討論我們去年進行的產品線收購，我相信是在第三季。這是機器和車輛。這是我們目前在氮氣產品業務上所做的事情的延伸。在機器和車輛中，推土機或軍用車輛等的大型懸吊系統具有與我們在氮氣瓶中類似的活塞和氣缸結構，我們已將其確定為要擴展到的特定領域。因此，此次收購為我們提供了一個小型產品線立足點，現在我們正在對該特定領域進行資本投資以及與投資相關的管理費用。我們大力拓展的另一個領域是注氣，這是一項不斷發展且成長非常迅速的技術。我們正在做一些相當革命性的工藝，以便在不同的工藝中生產這些氣體直接噴射噴嘴，但我不會告訴你這個工藝，因為它有點專有。這是工業領域的另一個巨額資本投資和成本投資。這只是其中的幾個；我們有很多這樣的事情正在進行。

Got it, that's helpful, thank you. And then I believe somewhere embedded in your -- I guess it might be in your Aerospace business, you do make components for industrial gas turbines, is that correct, and --

明白了，很有幫助，謝謝然後我相信你的某個地方——我想可能是在你的航空航天業務中，你確實為工業燃氣渦輪機製造組件，這是正確的，而且——

That's correct.

這是正確的。

-- can you tell me if that's a business that you're seeing growth in, which it seems like you might be, and is there a future to try and grow that or pursue that as a strategic product line as opposed to just the small niche business that you have now?

- 你能否告訴我，這是否是一個你正在看到增長的業務（看起來你可能會增長），以及是否有未來嘗試發展該業務或將其作為戰略產品線而不僅僅是小型產品線您現在擁有的利基業務嗎？

Well, that's a great question. We had been investing over the years in development programs for the GE heavy frame 7H -- I believe that it's [7 to 9H], which do not sell very well. We continue to work with heavy industrial turbines. A lot of it is development programs. We don't see this being a substantial portion of our future. There's -- in many cases there's not enough of a barrier to entry to generate the type of returns that we're looking for and it's a [hyperly] cyclical market so we look at it as an adjunct not a core business.

嗯，這是一個很好的問題。多年來我們一直在投資 GE 重型車架 7H 的開發項目——我相信它是 [7 到 9H]，但銷量不太好。我們繼續與重型工業渦輪機合作。其中很多是開發計劃。我們認為這不會成為我們未來的重要組成部分。在許多情況下，沒有足夠的進入障礙來產生我們正在尋找的回報類型，而且這是一個[高度]週期性的市場，因此我們將其視為輔助業務而不是核心業務。

Okay. And then thirdly, just what are you seeing from a competitive environment standpoint? How is pricing, are you experiencing any sort of pricing pressures?

好的。第三，從競爭環境的角度來看，您看到了什麼？定價怎麼樣，您是否遇到任何定價壓力？

Not really. It's a funny thing, and I've said this a number of times since the beginning of the recession, the thing that has surprised me most over the past several years is the lack of pricing pressure. You see the normal pricing pressures that you'd see, but there's been nothing substantial given the capacity reductions and demand reduction, so I'm really kind of pleasantly surprised there. I think that as -- especially in Aerospace, as the ramp up continues and capacity is limited, you're going to see more price elasticity that will help us, we hope, but that's certainly our outlook.

並不真地。這是一件有趣的事情，自從經濟衰退開始以來我已經說過很多次了，過去幾年最讓我驚訝的是缺乏定價壓力。你會看到正常的價格壓力，但考慮到產能減少和需求減少，沒有什麼實質的影響，所以我真的有點驚喜。我認為，尤其是在航空航太領域，隨著產能的持續成長和產能有限，我們希望看到更大的價格彈性，這將有助於我們，但這肯定是我們的前景。

Got it. And then just finally to jump on the -- beating up the Aerospace aftermarket, the results in the quarter, you talked about -- as you've discussed in the past, you did have these pull-ins into Q4 and I believe maybe even had a large slug earlier in the year of parts orders for the CFM6. Do you expect to see any other sorts of bubbles like that? Is there the potential that we will have any sort of large anomalous one-time shots through the year this year?

知道了。最後，最後跳到 - 擊敗航空航天售後市場，你談到的本季度的業績 - 正如你過去所討論的那樣，你確實在第四季度進行了這些拉動，我相信甚至可能今年早些時候，CFM6的零件訂單出現了很大的下滑。您希望看到類似的其他類型的氣泡嗎？今年我們是否有可能發生任何類型的大型異常一次性鏡頭？

Yes, the answer is yes. In particular, as you may have heard, GE announced a deal with Aviall on the CF6 engine, in particular. That has created a less stable order environment for us because their ordering pattern is quite different than GE's. So until we iron some of that out and we see much more volatility in our order patterns than we have in the past.

是的，答案是肯定的。特別是，正如您可能聽說的那樣，GE 宣布與 Aviall 就 CF6 引擎達成協議。這給我們造成了一個不太穩定的訂單環境，因為他們的訂購模式與通用電氣的訂單有很大不同。因此，在我們解決一些問題之前，我們會發現訂單模式的波動性比過去更大。

Okay, so we could see some lumpiness in that Aerospace segment as we move through the year?

好的，那麼隨著時間的推移，我們可能會看到航空航太領域出現一些波動？

Exactly. And for the full year it won't make a difference but it certainly is very different than what it was before. Now predominantly we're CFM56, though the CF6 still has an impact, but it's not an overall impact.

確切地。對於全年來說，這不會產生什麼影響，但肯定與以前有很大不同。現在主要是CFM56，雖然CF6仍然有影響，但不是整體影響。

Got it. Okay, thank you very much.

知道了。好的，非常感謝。

Thanks, Fred.

謝謝，弗雷德。

Your next question comes from the line of Holden Lewis representing BB&T. Please proceed.

您的下一個問題來自代表 BB&T 的 Holden Lewis。請繼續。

Thank you, good morning.

謝謝你，早安。

Morning, Holden.

早上好，霍頓。

Clarify for me a little bit, you mentioned that you expect markets to improve going forward, is that a specific comment about Aerospace, because it seemed like you were saying the same thing about Industrial and Distribution, and when I think about automotive markets and general industrial markets, those don't seem to be markets that need to improve much, in fact it seemed like more broadly they're decelerating. So is that just an Aerospace comment, or are there some markets that are meaningful that you're in within Industrial and Distribution that you're also expecting improvement?

為我澄清一下，您提到您預計市場未來會改善，這是對航空航天的具體評論，因為您似乎對工業和分銷也說了同樣的事情，當我想到汽車市場和一般市場時就工業市場而言，這些市場似乎不需要太大改善，事實上，從更廣泛的角度來看，它們似乎正在減速。那麼，這只是航空航太的評論，還是您在工業和分銷領域中存在一些有意義的市場，您也期望得到改善？

Well, first, if you look at the Industrial capacity utilization or Industrial output, it still hasn't recovered from the recession. In fact, the overall industrial GDP -- or overall economy of America recovered to pre-recession levels in September of 2011 and they're not forecasting industrial production to recover fully probably for another year, so we do expect to continue to see improvements. The second thing is, auto production currently is forecasted to be up about 12% this year. Your pre-recession high was about 17 million and you're at just over 14 million units, so I think there's plenty of room for that to continue to improve. The average age of a vehicle on the road is a record post-World War II level. I have no indications from anybody, other than the caution in Europe, that our end markets are going to slow.

首先，如果你看一下工業產能利用率或工業產出，它仍然沒有從衰退中恢復過來。事實上，整體工業GDP（或美國整體經濟）已於2011 年9 月恢復至衰退前的水平，並且他們預計工業生產可能在接下來的一年內不會完全恢復，因此我們確實預計會繼續看到改善。第二件事是，目前預計今年汽車產量將成長約12%。經濟衰退前的最高點約為 1700 萬台，而現在的數量剛剛超過 1400 萬台，所以我認為還有很大的空間繼續改善。道路上車輛的平均車齡達到了二戰後的最高水準。除了歐洲的謹慎態度之外，我沒有任何跡象表明我們的終端市場將會放緩。

Okay. And then the improvement in aerospace, given that your -- it looks like your backlog has been rising sequentially now for at least three quarters, I know that it's not a perfect correlation but does that mean that we should expect to see sequential improvements in revenues out of Aerospace, too? I guess maybe spares hinges on that, but I guess we would expect to see sequential gains in Aerospace at this point because it's earlier in its cycle, is that a reasonable interpretation?

好的。然後是航空航太領域的改善，考慮到您的積壓訂單現在已經連續上升了至少三個季度，我知道這不是完美的相關性，但這是否意味著我們應該期望看到收入的連續改善也出航空航天嗎？我想也許備件取決於這一點，但我想我們預計此時會看到航空航太領域的連續成長，因為它處於週期的早期，這是一個合理的解釋嗎？

It is, and you're right about not a perfect correlation. Backlog I've cautioned over the years repeatedly that it depends on customers that have different definitions for lead times, different programs, lead time for materials can have an effect on backlog. So backlog is a directional indicator but in this case I think you're right that we should continue to see improvement over time.

確實如此，而且你說得對，這並不是完美的相關性。積壓 多年來我反覆提醒，這取決於顧客對交貨時間有不同的定義，不同的計畫、材料的交貨時間可能會對積壓產生影響。因此，積壓是一個方向指標，但在這種情況下，我認為你是對的，隨著時間的推移，我們應該繼續看到改進。

Okay. And then, also, in the spirit of being back and having the three segments reported again, you've commented in the past on orders, which I guess is heavily OE, are you able to get us a sense of what the orders look like in the quarter, maybe go back and give us a little bit of history if you have it available?

好的。然後，本著回來並再次報告這三個部分的精神，您過去曾對訂單發表過評論，我想這很大程度上是 OE，您能否讓我們了解訂單的樣子在本季度，如果您有的話，也許可以回去給我們一些歷史記錄？

Sure. Holden, this is Chris, so you want to identify just on the Aerospace orders --

當然。霍頓，我是克里斯，所以你想在航空航天訂單上確認身份——

Yes.

是的。

-- in your comments? Yes, So for the quarter we were at $114 million on orders for Aerospace.

——在你的評論中？是的，本季我們的航空航天訂單金額為 1.14 億美元。

And do you have a sense of what that was maybe two --?

你知道那可能是兩個——嗎？

Year over year was a 17% growth, right.

年成長 17%，對吧。

Okay.

好的。

And sequentially, just the nature of, I think, seasonality a little bit there, too, but we were down 36% sequentially. The key message on the order side -- the key me -- Yes, exactly, and we had a big -- we had a large quarter in the fourth quarter. So it is a toss what we're looking at, and although we're cautionary on the backlog side but yet very bullish given the end market for Aerospace OEM is over $100 million growth quarter over quarter in our backlog, so feeling very good about a $490 million-plus number coming out of Q1.

我認為，季節性的本質也有一點，但我們連續下降了 36%。訂單方面的關鍵訊息——關鍵的我——是的，沒錯，我們有一個很大的——我們在第四季有一個很大的季度。因此，我們正在考慮的事情是一個折騰，儘管我們對積壓方面持謹慎態度，但鑑於航空航天 OEM 的終端市場在我們的積壓中季度環比增長超過 1 億美元，因此我們感覺非常好第一季的收入超過4.9 億美元。

Right, and that's up from like $431 million in Q4, right?

是的，這比第四季的 4.31 億美元有所增加，對吧？

On the Q4 side we were at $475 million and it was about $390 million. I'm giving you -- sorry -- the total number for Aerospace. So we ended at $492 million in the first quarter, which was up 4% sequentially and up 26% quarter over quarter, so that's where the growth's coming from.

第四季的營收為 4.75 億美元，約 3.9 億美元。抱歉，我給你的是航空航太的總數。因此，我們第一季的營收為 4.92 億美元，季增 4%，季增 26%，這就是成長的來源。

Was that $492 million mostly OE, or is that all in?

這 4.92 億美元主要是 OE 資金，還是全部？

Yes, yes. No, it's 97% OE.

是的是的。不，這是 97% OE。

[It does that.] And then you said the fourth-quarter backlog was what?

[確實如此。]然後你說第四季的積壓是什麼？

Fourth-quarter backlog was $475 million as we ended the year.

截至年底，第四季積壓訂單為 4.75 億美元。

And that's again all in?

這又是全部了嗎？

Yes, exactly. That's all in that we had sequential growth.

對，就是這樣。這就是我們實現連續成長的全部原因。

Okay, got it. All right, appreciate it.

好，知道了。好吧，欣賞一下。

Thanks, Holden.

謝謝，霍頓。

Your next question comes from the line of Scott Graham representing Jefferies. Please proceed.

你的下一個問題來自代表傑富瑞的斯科特·格雷厄姆（Scott Graham）。請繼續。

Good morning. Most of my questions have been answered. I'm going to ask a something new, something about Aerospace.

早安.我的大部分問題都得到了解答。我要問一些新的問題，一些關於航空航天的問題。

Sure. (laughter)

當然。（笑聲）

So I was just wondering, Greg, you're an industry veteran, I have two questions for you on Aerospace. Why do think we've gotten off to a slower start on the OE side -- I'm sorry, on the aftermarket -- no, on the OE side? I apologize. For the year, the industry.

所以我只是想知道，格雷格，你是一位行業資深人士，我有兩個關於航空航天的問題要問你。為什麼我們認為我們在原配設備方面起步較慢——抱歉，是在售後市場——不，是在原始設備方面？我道歉。對於這一年來說，產業。

That's a good question. Well, Boeing's output was very strong and I'm not sure I'm following you. I know some of the aftermarket spares have surprised people, Pratt and Whitney and GE reporting down for the year, that was somewhat of a surprise, but I think the OEs are doing reasonably well. I will continue that commentary on the spares. There was a lot of ordering going on for spares in the third and fourth quarter, GE and Pratt both reported in the third quarter in particular, and I think that was replenishing stocks, so that was not a continuum. So I think we're going to continue to see a rebound in that for the balance of the year. Other than that, I think that things are pretty bright. Production increases are looking pretty solid, you're not hearing anything more about the 787, the 777 ramp up continues, narrow body ramp up orders -- a lot of people have been commenting more than anything else about a bubble in orders and I think that's not the issue, the issue is as long as we don't create a bubble in production I think the bubble in orders simply helps us because there will be push-outs and the like.

這是個好問題。嗯，波音的產量非常強勁，我不確定我是否聽懂了你的意思。我知道一些售後備件讓人們感到驚訝，普惠公司和通用電氣今年的業績報告有所下降，這有點令人驚訝，但我認為原始設備製造商的表現相當不錯。我將繼續對備件進行評論。第三季和第四季有大量備件訂購，通用電氣和普拉特都在第三季報告了這一點，我認為這是在補充庫存，所以這不是一個連續體。因此，我認為今年剩餘時間我們將繼續看到這一情況的反彈。除此之外，我認為事情非常光明。產量成長看起來相當穩健，你沒有聽到更多關於 787 的消息，777 的產量仍在繼續，窄體飛機的訂單量也不斷增加——很多人對訂單泡沫的評論最多，我認為這不是問題，問題是只要我們不製造生產泡沫，我認為訂單泡沫只會對我們有幫助，因為會出現淘汰等情況。

Right. You're not the first aerospace supplier that I've seen come in at OE mid single and I guess the answer is maybe it's just not linear, simple as that. On the aftermarket side, my only question was about your CFM56 comment about the indications of spend the rest of the year, could you elaborate?

正確的。你們不是我見過的第一個在 OE 中期進入的航空航天供應商，我想答案可能只是非線性的，就這麼簡單。在售後市場方面，我唯一的問題是關於您在 CFM56 上對今年剩餘時間的支出跡象的評論，您能詳細說明一下嗎？

We still think that the CFM56, based on the demographics of the fleet and the engine shop visit forecast that we have in front of us, if you look at -- CFM56 will rise roughly 12% this year in engine shop visits, so you could see a corresponding level of spare parts in that area. Next year, it's forecasted to rise about 18%, so we look at that outlook of increased engine shop visits going forward as being a very positive indicator because there is a correlation between shop visits and spare parts usage, as well as the MRO activity.

我們仍然認為，根據機隊人口統計和擺在我們面前的發動機車間訪問量預測，CFM56 今年的發動機車間訪問量將增長約 12%，因此您可以查看該區域相應級別的備件。明年，預計將成長約 18%，因此我們認為未來引擎車間訪問量增加的前景是一個非常積極的指標，因為車間訪問量與備件使用以及 MRO 活動之間存在相關性。

Great. That's all I had, thank you.

偉大的。這就是我所擁有的一切，謝謝。

Thank you.

謝謝。

You have a follow-up question from the line of Matt Summerville representing KeyBanc Capital. Please proceed.

您有來自 KeyBanc Capital 代表 Matt Summerville 的後續問題。請繼續。

Is that CFM number you just shared, Greg, is that the 5V and 7V, or is that inclusive of another variety that I'm not thinking of?

Greg，您剛剛分享的 CFM 數字是 5V 和 7V，還是包含其他我沒有想到的品種？

I believe it's all.

我相信這就是全部。

Okay. And then I just -- I wanted to clarify, in Industrial, the expansion you're in the process of making in Sweden, are there startup costs that we should be thinking about incorporating into our models in the back half as that ramps up, or on a net basis are the startup costs less than the -- I'll call them excess manufacturing expenses you're encountering by having to outsource?

好的。然後我只是 - 我想澄清一下，在工業領域，您正在瑞典進行的擴張，我們是否應該考慮將啟動成本納入後半部分的模型中，隨著啟動成本的增加，或者按淨額計算，啟動成本是否低於——我將其稱為您因不得不外包而遇到的超額製造費用？

Yes. The answer is we should see improved financial performance in the back half of the year.

是的。答案是我們應該會在下半年看到財務表現的改善。

And then maybe if you could just speaking about the non-automotive-related piece of general indust -- or of your Industrial segment, if you will, what end markets, specifically either in North America or Europe, where you're seeing growth where maybe you've been surprised on the downside? And then could you just clarify the growth rate experienced in Associated Spring, which would obviously be the automotive business in the quarter?

然後，也許您可以談論一般工業中與汽車無關的部分，或者您的工業部門，如果您願意的話，您會看到哪些終端市場，特別是在北美或歐洲，您在哪裡看到了成長也許您對缺點感到驚訝？然後您能否澄清一下 Associated Spring 的成長率，這顯然是本季的汽車業務？

Yes, in the quarter -- let me answer that, Matt, first then we'll let Greg comment on your earlier question. In the quarter we had -- Associated Spring orders were actually down 4% year over year, but they were up sequentially 7%. So for the past several quarters we've seen, really, the order activity as well as the sales activity being one-for-one.

是的，在本季度 - 讓我回答這個問題，馬特，首先我們會讓格雷格評論你之前的問題。在本季度，我們的相關春季訂單實際上比去年同期下降了 4%，但環比增長了 7%。因此，在過去的幾個季度中，我們確實看到訂單活動和銷售活動是一對一的。

As far as the broad-based general Industrial business, it's a pretty broad based. We have everything from -- believe it or not, from some aerospace springs used in missiles to general products that are used for a variety of applications, everything from air conditioner reed valve to springs used in general mechanical devices, so it's pretty broad based. We have seen -- first quarter we saw nice improvement at Associated Spring in profitability, we think it's going to continue to improve. It's improving at a slow rate but at the same time, general Industrial output has improved at a slow rate.

就基礎廣泛的一般工業業務而言，它的基礎相當廣泛。不管你信不信，我們擁有從導彈中使用的一些航空彈簧到用於各種應用的通用產品，從空調簧片閥到通用機械設備中使用的彈簧的一切，所以它的基礎相當廣泛。我們已經看到，第一季我們看到 Associated Spring 的獲利能力有了很大的改善，我們認為它將繼續改善。它正在以緩慢的速度改善，但同時，一般工業產出也以緩慢的速度改善。

Got it, thanks.

知道了謝謝。

Thanks, Matt.

謝謝，馬特。

I would like to thank everyone for your participation in today's conference. This concludes the presentation. You may now disconnect and have a great day.

我感謝大家參加今天的會議。演示到此結束。您現在可以斷開連接並度過愉快的一天。