Barrick Mining Corp (B) 2023 Q1 法說會逐字稿

Ladies and gentlemen, good morning. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the Barnes First Quarter 2023 Earnings Conference Call and Webcast. Today's conference is being recorded. (Operator Instructions) And I will now turn the conference over to Bill Pitts, Vice President of Investor Relations. You may begin.

女士們，先生們，早上好。我叫艾比，今天我將擔任你們的會議接線員。此時，我想歡迎大家參加 Barnes 2023 年第一季度收益電話會議和網絡直播。今天的會議正在錄製中。 （操作員說明）我現在將會議轉交給投資者關係副總裁 Bill Pitts。你可以開始了。

Thank you, Abby. Good morning, everyone, and thank you for joining us for our first quarter 2023 earnings call. With me are Barnes President and Chief Executive Officer, Thomas Hook; and Senior Vice President, Finance and Chief Financial Officer, Julie Streich. 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 onebarnes.com, that's O-N-E-B-A-R-N-E-S.com.

謝謝你，艾比。大家早上好，感謝您加入我們的 2023 年第一季度財報電話會議。和我一起的是 Barnes 總裁兼首席執行官 Thomas Hook；以及財務高級副總裁兼首席財務官 Julie Streich。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 onebarnes.com 的投資者關係部分找到它，即 O-N-E-B-A-R-N-E-S.com。

During our call, we will be referring to the earnings release supplemental slides, which are also posted on the website. Our discussion today includes certain non-GAAP financial measures, which provide additional information we believe is helpful to investors. These measures have been reconciled to the related GAAP measures in accordance with SEC regulations.

在我們的通話中，我們將參考同樣發佈在網站上的收益發布補充幻燈片。我們今天的討論包括某些非 GAAP 財務措施，這些措施提供了我們認為對投資者有幫助的額外信息。這些措施已根據美國證券交易委員會的規定與相關的 GAAP 措施進行了協調。

You will find a reconciliation table on our website as part of our press release and in the Form 8-K submitted to the Securities and Exchange Commission. Be advised 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.

作為新聞稿的一部分，您可以在我們的網站上以及提交給美國證券交易委員會的 8-K 表格中找到對賬表。請注意，我們在今天電話會議的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。

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 that are mentioned in today's call and are described in our periodic filings with the SEC. These filings are available through the Investor Relations section of our corporate website at onebarnes.com.

這些前瞻性陳述受風險和不確定因素的影響，可能導致實際結果與預期結果存在重大差異。請考慮今天電話會議中提到的以及我們定期向美國證券交易委員會提交的文件中描述的風險和不確定性。這些文件可通過我們公司網站 onebarnes.com 的投資者關係部分獲得。

Let me now turn the call over to Tom for his opening remarks, then Julie will provide a review of our financial performance and details of our updated 2023 outlook. After that, we will open up the call for questions. Tom?

現在讓我把電話轉給湯姆的開場白，然後朱莉將回顧我們的財務業績和我們更新的 2023 年展望的細節。之後，我們將打開問題電話。湯姆？

Thank you, Bill, and good morning, everyone. As we exit 2022 and enter 2023, Barnes is fully focused on driving core business execution and demonstrating meaningful advancement in our transformation journey. While I am pleased with the progress in energy to date, there remains considerable work to do. Julie will talk about our first quarter financial performance in a few moments. I would like to take time this morning to address the meaningful transition actions underway at Barnes.

謝謝你，比爾，大家早上好。在我們離開 2022 年並進入 2023 年之際，巴恩斯全神貫注於推動核心業務執行，並在我們的轉型之旅中展示有意義的進步。雖然我對迄今為止在能源方面取得的進展感到滿意，但仍有大量工作要做。稍後，朱莉將談論我們第一季度的財務業績。今天早上我想花點時間談談巴恩斯正在進行的有意義的過渡行動。

There are numerous products progressing across the company that will significantly rationalize overhead as we move from a holding company structure to a more agile operating architecture. These include streamlining corporate and segment overhead costs to enable Barnes to compete more effectively in the markets we serve. All levels of leadership will be structured to better serve the needs of the operating businesses to drive business performance and to support our integrate, consolidate and rationalize initiatives.

隨著我們從控股公司結構轉變為更靈活的運營架構，整個公司正在開發許多產品，這些產品將顯著合理化管理費用。其中包括精簡公司和部門管理費用，使 Barnes 能夠在我們服務的市場中更有效地競爭。各級領導的結構將更好地滿足運營業務的需求，以推動業務績效並支持我們整合、鞏固和合理化舉措。

Our restructuring and transformation execution remains on track for Phases 1 and 2 announced in July and October, respectively. Collectively, we anticipate approximately $26 million of annual savings with total restructuring costs of $29 million for these phases. We expect to achieve run rate savings in 2024. We are now ready to announce the final significant phase of our restructuring and transformation program. Phase 3 will impact our Industrial and Aerospace segments and address functional efficiencies globally.

對於分別於 7 月和 10 月宣布的第一階段和第二階段，我們的重組和轉型執行仍按計劃進行。總的來說，我們預計每年可節省約 2600 萬美元，這些階段的總重組成本為 2900 萬美元。我們預計將在 2024 年實現運行率節省。我們現在準備宣布重組和轉型計劃的最後重要階段。第 3 階段將影響我們的工業和航空航天部門，並在全球範圍內解決職能效率問題。

These products will be implemented over the next 24 months. Phase 2 will include Aerospace and Industrial facility transfers of work to generate production efficiencies and reduce costs. Last week, we engaged with the Works Council at one of our German facilities and provided notice to employees at a second facility in Germany. Some work from these locations will transition to existing production facilities in Italy and China.

這些產品將在未來 24 個月內實施。第二階段將包括航空航天和工業設施的工作轉移，以提高生產效率並降低成本。上週，我們與德國一家工廠的勞資委員會進行了接觸，並向德國第二家工廠的員工發出了通知。這些地點的一些工作將轉移到意大利和中國的現有生產設施。

In the U.S., the company has elected to freeze the benefits associated with one of its defined benefit pension plans, which will provide pension savings over time. We will share further program details as they unfold. The total investment for Phase 3 is forecast to be $58 million, including $28 million of restructuring charges; $16 million of external transformation-related charges, most of which were incurred in the first quarter; and $14 million of capital investment. For Phase 3, we anticipate run rate savings of approximately $27 million in 2025.

在美國，該公司已選擇凍結與其一項固定收益養老金計劃相關的福利，該計劃將隨著時間的推移提供養老金儲蓄。隨著計劃的展開，我們將分享更多計劃細節。第三階段的總投資預計為 5800 萬美元，其中包括 2800 萬美元的重組費用； 1600 萬美元的外部轉型相關費用，其中大部分發生在第一季度；和 1400 萬美元的資本投資。對於第 3 階段，我們預計到 2025 年運行率將節省約 2700 萬美元。

We will continue to dedicate resources to lead the execution of this program, so we deliver products on time and budget. Our operations and functional teams will remain focused on delivering core business execution. With the appropriate deployment of resources, we can drive enhanced bottom line profitability effectively as each initiative is fully implemented. We will continue to provide quarterly updates on the progress being made with the company's transformation.

我們將繼續投入資源來領導該計劃的執行，以便我們按時按預算交付產品。我們的運營和職能團隊將繼續專注於提供核心業務執行。通過適當地部署資源，我們可以在全面實施每項舉措時有效地提高底線盈利能力。我們將繼續提供有關公司轉型進展的季度更新。

Moving to our business operations. I am encouraged by the organic orders and sales growth this quarter at Industrial compared to a year ago. Our targeted growth areas in the Automation business and multicavity mold systems within our Molding Solutions business performed well. The same is true at Motion Control Solutions, which benefited from an automotive customer stocking order and sales ahead of our Bristol plant closure.

轉向我們的業務運營。與一年前相比，工業本季度的有機訂單和銷售增長令我感到鼓舞。我們在自動化業務和模塑解決方案業務中的多腔模具系統中的目標增長領域表現良好。 Motion Control Solutions 也是如此，它受益於汽車客戶在我們布里斯托爾工廠關閉之前的庫存訂單和銷售。

We will see a continued benefit in the second quarter as well. Therefore, a few top line positives to celebrate in the quarter. However, we delivered asymmetric performance given lower organic orders and sales for our automotive hot runner product line within our Molding Solutions. China was particularly soft. Also, the sheet metal forming product line within Motion Control Solutions generated lower organic orders, though delivered a modest increase in organic sales compared to a year ago. The European market impacted this product line.

我們也將在第二季度看到持續的收益。因此，本季度有一些值得慶祝的頂線積極因素。然而，鑑於我們的成型解決方案中汽車熱流道產品線的有機訂單和銷售額較低，我們提供了不對稱的性能。中國特別軟。此外，Motion Control Solutions 的鈑金成型產品線產生了較低的有機訂單，但與一年前相比有機銷售額略有增長。歐洲市場影響了這條產品線。

Regarding Industrial's bottom line, adjusted operating margin improved modestly year-over-year. However, margins remained below our expectation. Positive pricing actions are taking hold and making a difference, but clearly inflationary pressures persist. Additionally, with the Molding Solutions, an unfavorable mix of lower hot runners and higher mold systems had a detrimental impact on Industrial's margin.

關於工業的底線，調整後的營業利潤率同比小幅提高。然而，利潤率仍低於我們的預期。積極的定價行動正在發揮作用並發揮作用，但顯然通脹壓力依然存在。此外，對於模塑解決方案，較低熱流道和較高模具系統的不利組合對 Industrial 的利潤率產生了不利影響。

To address pipeline opportunities, commercial feet on the street investments are being made to produce a strengthening sales funnel. That is our expectation to deliver sales growth across all Industrial business units in 2023 in building the pipeline as the first step. In Aerospace, the broad-based recovery continues with deepening customer relationships, generating strong orders across single-aisle and wide-body platforms.

為了抓住管道機會，正在對街頭投資進行商業投資，以產生一個加強的銷售漏斗。這是我們期望在 2023 年實現所有工業業務部門的銷售增長，作為第一步建設管道。在航空航天領域，隨著客戶關係的深化，廣泛的複蘇繼續進行，單通道和寬體平台產生了強勁的訂單。

The orders pipeline for both the OEM and aftermarket businesses is ahead of plan. We anticipate continued order strength with improving operational and on-time delivery performance. Additionally, our reenergized commercial outreach is presenting growth avenues with both new and existing customers. Aerospace industry trends have been favorable with the International Air Transport Association, IATA, recently reporting that February global domestic travel was up more than 25% versus a year ago and at over 97% of February 2019 levels.

OEM 和售後市場業務的訂單渠道都超前於計劃。我們預計隨著運營和準時交貨性能的提高，訂單將持續強勁。此外，我們重新煥發活力的商業拓展正在為新老客戶提供增長途徑。國際航空運輸協會 (IATA) 最近報告稱，2 月份全球國內旅行比一年前增長了 25% 以上，達到 2019 年 2 月水平的 97% 以上，航空航天業的趨勢一直是有利的。

International traffic was up nearly 90% for February versus a year ago and has reached approximately 78% of 2019 levels. With China's reopening, the Asia-Pacific region has seen a strong rebound. Airfreight metrics likewise saw sequential improvement in February. While there are concerns regarding global economy, air travel continues to demonstrate solid recovery and demand trends point to further improvement.

與一年前相比，2 月份的國際客流量增長了近 90%，達到了 2019 年水平的約 78%。隨著中國的重新開放，亞太地區出現了強勁反彈。空運指標在 2 月份同樣出現環比改善。儘管對全球經濟存在擔憂，但航空旅行繼續表現出穩健的複蘇，需求趨勢表明進一步改善。

These trends support our favorable view for both the OEM and aftermarket businesses. On the top line, we're generating solid revenue growth with steadily improving operational execution and efficiency. With respect to bottom line profitability, we see productivity initiatives and solid management execution driving improvement. Some of our facilities are delivering performance recovery at pace, though this is not universal.

這些趨勢支持我們對 OEM 和售後市場業務的有利看法。最重要的是，我們正在穩步提高運營執行力和效率，實現穩健的收入增長。關於底線盈利能力，我們看到生產力舉措和可靠的管理執行力推動了改進。我們的一些設施正在按速度恢復性能，儘管這並不普遍。

The good news is that each operational site is demonstrating performance improvement and additional productivity actions are targeted, especially within facilities where there is a significant percentage of newly hired team members. In addition, we expect mitigation of inflationary pressures through ongoing contractual price recovery and other actions. Overall, I'm pleased with the performance and competitive positioning of our Aerospace business.

好消息是，每個運營站點都在展示性能改進，並且有針對性地採取了額外的生產力行動，尤其是在新僱用團隊成員佔很大比例的設施中。此外，我們預計通過持續的合同價格恢復和其他行動緩解通脹壓力。總的來說，我對我們航空航天業務的表現和競爭定位感到滿意。

Let me take a moment to comment on capital deployment in our portfolio. As previously discussed, industrial M&A activity remains paused until core business execution is stronger and more consistent. That said, we continue to identify opportunities to drive enterprise value in a more compelling fashion via ongoing strategic evaluation of our Industrial portfolio of businesses, brands and products.

讓我花點時間評論一下我們投資組合中的資本配置。如前所述，在核心業務執行力更強、更一致之前，工業併購活動仍處於暫停狀態。也就是說，我們通過對我們的業務、品牌和產品的工業組合進行持續戰略評估，繼續尋找機會以更具吸引力的方式推動企業價值。

Within Aerospace, we are evaluating targeted M&A opportunities with a focus on assets with a strong strategic fit, with significant post-close integration opportunities and revenue and cost synergies. Before concluding, as you may have seen with last week's announcement, Steve Moule, our Industrial segment President, has resigned his position to accept a role in another company. I'd like to thank Steve for his leadership and contributions to Barnes since joining us in 2019. I know the Barnes team wishes Steve well in his new position.

在航空航天領域，我們正在評估有針對性的併購機會，重點關注具有強大戰略契合度的資產，以及重要的交易完成後整合機會以及收入和成本協同效應。在結束之前，您可能已經從上週的公告中看到，我們的工業部門總裁 Steve Moule 已辭去職務，接受另一家公司的職位。我要感謝史蒂夫自 2019 年加入我們以來對巴恩斯的領導和貢獻。我知道巴恩斯團隊希望史蒂夫在他的新職位上一切順利。

In closing, we stay highly focused on driving core business execution and delivering the full value embedded in our portfolio of strong brands and leading industrial technologies. Our major restructuring and transformation program has moved past planning and comprehensively into execution. We are committed to enhancing operational and financial performance to deliver the benefits and savings of this key initiative.

最後，我們將高度專注於推動核心業務執行，並提供我們強大品牌和領先工業技術組合中的全部價值。我們的重大重組和轉型計劃已經超越計劃並全面實施。我們致力於提高運營和財務績效，以實現這一關鍵舉措的收益和節省。

Let me now pass the call over to Julie for a discussion of our first quarter performance as well as some end market color.

現在讓我把電話轉給朱莉，討論我們第一季度的業績以及一些終端市場的顏色。

Good morning, everyone, and thank you, Tom. Let me begin with highlights of our first quarter results on Slide 4 of our supplement. First quarter sales were $335 million, up 7% from the prior year period, with organic sales increasing 9%. Foreign exchange negatively impacted sales by 2%. Adjusted operating income was $37.2 million this year, up 17% from an adjusted $31.8 million last year and adjusted operating margin of 11.1%, was up 90 basis points.

大家早上好，謝謝你，湯姆。讓我從我們補充的幻燈片 4 上的第一季度業績亮點開始。第一季度銷售額為 3.35 億美元，比去年同期增長 7%，有機銷售額增長 9%。外匯對銷售額產生了 2% 的負面影響。今年調整後的營業收入為 3720 萬美元，比去年調整後的 3180 萬美元增長 17%，調整後的營業利潤率為 11.1%，上升了 90 個基點。

Net income was $13.2 million or $0.26 per diluted share compared to $20.5 million or $0.40 per diluted share a year ago. On an adjusted basis, net income per share of $0.47, was up 15% from $0.41 last year. Adjusted net income per share in the first quarter of 2023 excludes $0.21 of restructuring and transformation-related charges. As Tom mentioned, with today's announced Phase 3 actions, we have reached the end of what we expect for major transformational actions and our focus now turns to execution.

淨收入為 1320 萬美元或每股攤薄收益 0.26 美元，而一年前為 2050 萬美元或每股攤薄收益 0.40 美元。在調整後的基礎上，每股淨收入為 0.47 美元，比去年的 0.41 美元增長 15%。 2023 年第一季度調整後的每股淨收益不包括 0.21 美元的重組和轉型相關費用。正如湯姆所提到的，隨著今天宣布的第三階段行動，我們已經完成了我們對重大轉型行動的預期，現在我們的重點轉向了執行。

Interest expense was $5.3 million, an increase of $1.7 million due to an increase in average interest rates. Other expense was $1.3 million, down $300,000 from last year, primarily driven by an increase in nonoperating pension income, offset in part by foreign exchange losses. The effective tax rate in the first quarter of 2023 was 20.9%, essentially in line to the comparable period last year, though lower than 64.7% for the full year 2022. The decrease in the first quarter effective tax rate from the full year 2022 rate is primarily due to the absence of a goodwill impairment charge incurred in 2022, which is not tax deductible for book purposes.

由於平均利率上升，利息支出為 530 萬美元，增加了 170 萬美元。其他費用為 130 萬美元，比去年減少 300,000 美元，這主要是由於非營業養老金收入的增加，部分被外匯損失所抵消。 2023 年第一季度實際稅率為 20.9%，與去年同期基本持平，但低於 2022 年全年的 64.7%。第一季度實際稅率較 2022 年全年下降主要是由於不存在 2022 年發生的商譽減值費用，該費用不可用於賬面減稅。

Now I will turn to our segment performance, beginning with Industrial. For the first quarter, sales were $218 million, up 3% from the prior year period. Organic sales increased 6%, while unfavorable foreign exchange lowered sales by 3%. Industrial's operating profit was $4.5 million versus $14.7 million a year ago. Excluding $12.1 million of restructuring and transformation-related charges in the current year, adjusted operating profit of $16.6 million, was up 11%, and adjusted operating margin of 7.6%, was up 50 basis points. Adjusted operating profit was impacted by lingering inflationary pressures and unfavorable mix, offset in part by positive pricing.

現在我將轉向我們的細分市場表現，從工業開始。第一季度銷售額為 2.18 億美元，比去年同期增長 3%。有機銷售額增長了 6%，而不利的外匯使銷售額下降了 3%。 Industrial 的營業利潤為 450 萬美元，而一年前為 1470 萬美元。剔除當年 1210 萬美元的重組和轉型相關費用，調整後營業利潤為 1660 萬美元，增長 11%，調整後營業利潤率為 7.6%，增長 50 個基點。調整後的營業利潤受到揮之不去的通脹壓力和不利的組合的影響，部分被積極的定價所抵消。

With respect to orders and sales for the quarter across our Industrial businesses, Molding Solutions organic orders increased 6%, while organic sales increased 4%. Our multicavity mold system product line was very strong with personal care, packaging and general industrial end markets driving the orders and medical driving the sales. These were offset in part by weakness in our Synventive hot runner product line serving automotive end markets.

關於本季度我們工業業務的訂單和銷售額，模塑解決方案的有機訂單增長了 6%，而有機銷售額增長了 4%。我們的多腔模具系統產品線非常強大，個人護理、包裝和一般工業終端市場推動訂單，醫療推動銷售。這部分被我們服務於汽車終端市場的 Synventive 熱流道產品線的弱點所抵消。

For 2023, we expect Molding Solutions total and organic sales to be up mid-single digits. At Motion Control Solutions, organic orders were up 12% in the quarter, while organic sales grew by 7%. The business saw strong organic orders intake driven by transportation-related end markets, while we saw softness in the tool and die end market. We expect MCS to see mid-single-digit total and organic sales growth in 2023.

到 2023 年，我們預計成型解決方案的總銷售額和有機銷售額將達到中等個位數。在 Motion Control Solutions，有機訂單在本季度增長了 12%，而有機銷售額增長了 7%。該業務在與運輸相關的終端市場的推動下有機訂單量強勁，而我們看到工具和模具終端市場疲軟。我們預計 MCS 的總銷售額和有機銷售額將在 2023 年實現中個位數增長。

At Automation, organic orders were up 7%, while organic sales increased 8%. We expect high single-digit total and organic sales growth for Automation in 2023. For the overall segment, we anticipate mid-single-digit total and organic sales growth for 2023, with adjusted operating margin between 9.5% and 10.5%, the latter, a slight uptick from our prior view.

在 Automation，有機訂單增長了 7%，而有機銷售額增長了 8%。我們預計 2023 年自動化的總銷售額和有機銷售額將實現高個位數增長。對於整個細分市場，我們預計 2023 年的總銷售額和有機銷售額將實現中個位數增長，調整後的營業利潤率在 9.5% 至 10.5% 之間，後者，與我們先前的看法相比略有上升。

At Aerospace, sales were $117 million, up 16% from a year ago. OEM sales were strong, up 11%, and our aftermarket remains robust with sales growing 27% in total. Within the aftermarket, MRO was up 19% and spare parts were up 41%. Operating profit was $18.8 million, up 14%. Excluding restructuring and transformation-related charges of $1.8 million, adjusted operating profit was $20.5 million, up 23% from last year.

在航空航天領域，銷售額為 1.17 億美元，比一年前增長 16%。 OEM 銷售強勁，增長了 11%，我們的售後市場依然強勁，總銷售額增長了 27%。在售後市場，MRO 增長了 19%，備件增長了 41%。營業利潤為 1880 萬美元，增長 14%。扣除 180 萬美元的重組和轉型相關費用，調整後的營業利潤為 2050 萬美元，比去年增長 23%。

Driving the performance in adjusted operating profit is the strength of the aftermarket business. Adjusted operating margin of 17.5%, was up 90 basis points. Our spare parts RSP business was solid in the quarter, consistent with our prior outlook. Keep in mind, while we expect similar quarterly sales levels for the rest of 2023, the prior year comparables get tougher and the year-over-year growth rates will not be as robust.

推動調整後營業利潤的表現是售後市場業務的優勢。調整後的營業利潤率為 17.5%，上升了 90 個基點。我們的備件 RSP 業務在本季度穩健，與我們之前的展望一致。請記住，雖然我們預計 2023 年剩餘時間的季度銷售水平相似，但上一年的可比性變得更加艱難，同比增長率也不會那麼強勁。

In our OEM business, orders were strong in the quarter, up 13%, and the book-to-bill was 1.6x. Our OEM backlog of $793 million, increased by 6% sequentially from December 2022 and was 11% higher than a year ago. We expect to convert approximately 45% of this backlog to revenue over the next 12 months. Our OEM sales outlook for 2023 is up mid-teens, a slightly more favorable view than our February outlook.

在我們的 OEM 業務中，本季度訂單強勁，增長 13%，訂單出貨比為 1.6 倍。我們的 OEM 積壓訂單為 7.93 億美元，自 2022 年 12 月以來環比增長 6%，比一年前增長 11%。我們預計在未來 12 個月內將大約 45% 的積壓訂單轉化為收入。我們對 2023 年 OEM 銷售前景的預期為中等水平，比我們 2 月份的預期略好。

For the aftermarket, we forecast 2023 growth of low double digits for MRO and high single digits for spare parts, both consistent with our prior view. Also unchanged is our forecast for Aerospace adjusted operating margin of between 18% and 19%. With respect to cash, first quarter cash provided by operating activities was $32 million versus a use of $9 million in the prior year period. The primary drivers of the increase are lower paid incentive compensation in 2023 relative to 2022 and a lower change in working capital compared to the prior year period.

對於售後市場，我們預測 2023 年 MRO 將實現低兩位數增長，而備件將實現高個位數增長，這與我們之前的看法一致。同樣保持不變的是，我們對航空航天調整後營業利潤率的預測在 18% 至 19% 之間。在現金方面，第一季度經營活動提供的現金為 3200 萬美元，而去年同期為 900 萬美元。增長的主要驅動因素是 2023 年支付的激勵薪酬與 2022 年相比較低，以及營運資本的變化與上年同期相比較低。

Free cash flow was $21 million versus a negative $17 million last year. Capital expenditures were $11 million, up approximately $4 million from the prior year. With our balance sheet, the debt-to-EBITDA ratio, as defined by our credit agreement, was 2.39x at quarter end. When considering our cash position at year-end on a net debt-to-EBITDA basis, we'd be approximately 2.1x.

自由現金流為 2100 萬美元，而去年為負 1700 萬美元。資本支出為 1100 萬美元，比上年增加約 400 萬美元。在我們的資產負債表中，我們的信貸協議定義的債務與 EBITDA 比率在季度末為 2.39 倍。在考慮我們年末的淨債務與 EBITDA 比的現金頭寸時，我們約為 2.1 倍。

Our first quarter average diluted shares outstanding were 51.3 million shares, and period end shares outstanding were 50.6 million. During the quarter, we did not repurchase any shares and approximately 3.4 million shares remain available under the Board's 2019 stock repurchase authorization.

我們第一季度的平均稀釋流通股為 5130 萬股，期末流通股為 5060 萬股。本季度，我們沒有回購任何股票，根據董事會 2019 年股票回購授權，仍有約 340 萬股股票可供使用。

Turning to Slide 6 of our supplement. Let me share details of our updated outlook for 2023. We continue to expect organic sales to be up 6% to 8% for the year, with adjusted operating margin between 12.5% and 13.5%. Adjusted EPS is expected to be in the range of $2.15 to $2.30, up 9% to 16% from 2022's adjusted earnings of $1.98 per share. This revised range reflects an increase of $0.05 from our previous outlook at the low end, given the performance achieved in the first quarter.

轉向我們補充的幻燈片 6。讓我分享我們對 2023 年最新展望的詳細信息。我們繼續預計今年有機銷售額將增長 6% 至 8%，調整後的營業利潤率將在 12.5% 至 13.5% 之間。調整後的每股收益預計在 2.15 美元至 2.30 美元之間，比 2022 年調整後的每股收益 1.98 美元增長 9% 至 16%。鑑於第一季度取得的業績，這一修訂後的範圍反映了我們之前的低端展望增加了 0.05 美元。

In 2023, adjusted earnings per share are anticipated to exclude a $0.56 impact related to the significant restructuring and transformation-related activities announced to date. With $0.21 recorded in the first quarter, we estimate approximately $0.24 in Q2, $0.07 in Q3 and $0.04 in Q4. A few other outlook items. Interest expense is anticipated to be approximately $24.5 million to $25 million, driven by a higher interest rate environment. Other income of $1 million, driven by nonoperating pension, a full year effective tax rate between 24.5% and 25.5%, CapEx of approximately $50 million, average diluted shares of approximately 51 million and cash conversion of approximately 100%.

到 2023 年，調整後的每股收益預計將不包括與迄今為止宣布的重大重組和轉型相關活動相關的 0.56 美元影響。第一季度錄得 0.21 美元，我們估計第二季度約為 0.24 美元，第三季度為 0.07 美元，第四季度為 0.04 美元。其他一些前景項目。受更高利率環境的推動，利息支出預計約為 2450 萬至 2500 萬美元。其他收入 100 萬美元，受非營業養老金驅動，全年有效稅率在 24.5% 至 25.5% 之間，資本支出約為 5000 萬美元，平均攤薄後股份約為 5100 萬股，現金轉換率約為 100%。

In closing, our first quarter exceeded our internal expectations. Solid organic orders and sales to begin the year provide positive momentum going into Q2. We are modestly more positive in our earnings outlook for the year though we remain cautious of the global economic environment. Across the company, the team is actively engaged in plans to draw down inventory and improve working capital efficiency over the course of the year.

最後，我們的第一季度超出了我們的內部預期。年初穩固的有機訂單和銷售為第二季度提供了積極的勢頭。儘管我們對全球經濟環境保持謹慎，但我們對今年的盈利前景略微樂觀。在整個公司，該團隊積極參與計劃，以在一年中減少庫存和提高營運資金效率。

Now with the major phases of our restructuring and transformation program announced, our focus will shift to delivering the operating and financial progress we expect from the initiatives. Doing so, we'll drive core business execution, cash flow generation and the value creation we expect to deliver. Operator, we will now open the call for questions.

現在，隨著我們宣布重組和轉型計劃的主要階段，我們的重點將轉移到實現我們期望從這些舉措中取得的運營和財務進展。這樣做，我們將推動核心業務執行、現金流產生和我們期望實現的價值創造。接線員，我們現在將打開問題電話。

(Operator Instructions) And we will take our first question from Matt Summerville with D.A. Davidson.

（操作員說明）我們將與 D.A. 一起回答 Matt Summerville 提出的第一個問題。戴維森。

A couple of questions. First, maybe starting with the Industrial business. Can you quantify the magnitude of unabsorbed inflation that you encountered in Q1? Also, how much in cost savings benefited Q1? At the end of the day, what I'm kind of trying to square is the fact that margins in that business have been coming down sequentially for 3 or 4 consecutive straight quarters. And I guess I'm trying to get a feel for when we start to see that step function improvement towards the margin range you're providing for the year? And then I have a follow-up.

幾個問題。首先，也許從工業業務開始。你能量化你在第一季度遇到的未吸收通貨膨脹的程度嗎？另外，Q1 有多少成本節約受益？歸根結底，我想說明的是，該業務的利潤率已經連續 3 或 4 個季度連續下降。而且我想我正在嘗試了解我們何時開始看到階躍函數向您提供的年度保證金範圍的改進？然後我有一個後續行動。

Sure. I'll give you kind of a macro answer, and then I'll let Julie follow through with numbers. There is a lot of inflation that has come through. As you know, it kind of comes through the order book first, Matt, and then through into the P&L. We have, over the course of the second half of last year through the order book, largely through pricing and productivity actions, been able to offset the effect of inflation coming into the order book. But as that is cleared off into our P&L, we were behind in '22 into the Q1. In Industrial, we've largely are on pursue basis with inflation. But going forward, my expectations are now that we have the pricing initiatives that have taken effect over the past 6 to 9 months that I've been on Board, that as it's clearing through the order book into revenue, will be ahead of inflation into 2023 as the year continues to move forward.

當然。我會給你一個宏觀的答案，然後我會讓朱莉用數字來跟進。已經發生了很多通貨膨脹。正如你所知，它首先通過訂單簿，馬特，然後進入損益表。在去年下半年的過程中，我們已經通過訂單簿，主要是通過定價和生產力行動，抵消了通貨膨脹對訂單簿的影響。但隨著我們的損益表被清除，我們在 22 年落後於第一季度。在工業領域，我們主要是在追求通貨膨脹的基礎上。但展望未來，我現在的期望是，我們的定價舉措在過去 6 到 9 個月內生效，我一直在董事會，隨著訂單清算轉化為收入，將領先於通貨膨脹2023年繼續向前發展。

So kind of, as you said, quantifying unabsorbed inflation in Q1, I think we've done a reasonable job of offsetting inflation effects in the P&L in Q1, but we were definitely behind in the second half of 2022. I'll give an opportunity for Julie to quantify the positive effect of some of the initiatives on Phase 1 and Phase 2 that affected Q1 and what it looks like for the remainder of '23.

正如您所說，量化第一季度未吸收的通貨膨脹，我認為我們在抵消第一季度損益中的通貨膨脹影響方面做得很合理，但我們在 2022 年下半年肯定落後了。我會給出一個朱莉有機會量化一些舉措對第一階段和第二階段影響第一季度的積極影響，以及 23 年剩餘時間的情況。

Matt, so in terms of benefits coming through the P&L, in the first quarter, it's largely benefits of Phase 1 and 2 that are starting to flow in, and it was less than $2 million in the quarter that we're starting to see. Now that will ramp largely in the second half of the year when we hit run rate starting in 2024. So it was a de minimis impact in the first quarter of the year, but we're going to -- as I mentioned, we're going to start to see that ramp slowly over the course of the year.

馬特，就損益錶帶來的收益而言，第一季度主要是第一階段和第二階段的收益開始流入，而我們開始看到的本季度收益不到 200 萬美元。現在，當我們從 2024 年開始達到運行率時，這將在下半年大幅增加。因此，這對今年第一季度的影響微乎其微，但我們將——正如我提到的，我們”在這一年中，我們將開始看到這種緩慢的增長。

And then in terms of the margin movement that we've seen sequentially, there's been a variety of factors that have contributed to that. Going from Q2 to Q3 last year, there was some noise coming out of EC with the plant closures, what was happening, especially with inflation at that period in time. Per Tom's comments, we were still not keeping pace with inflation, not only in EC, but across the rest of the portfolio.

然後就我們連續看到的保證金變動而言，有多種因素促成了這一點。從去年第二季度到第三季度，隨著工廠關閉，EC 發出了一些噪音，發生了什麼，特別是那個時期的通貨膨脹。根據 Tom 的評論，我們仍然沒有跟上通貨膨脹的步伐，不僅在 EC，而且在其他投資組合中。

We saw a bit of a dip in Gimatic in the third quarter. Then going from Q3 to Q4, there was a onetime charge that we took some inventory true ups that we had in the fourth quarter that impacted the margins there. And then as Tom spoke, to going from Q4 to Q1, it's really a story about the impact of mix in Synventive. The volume was down -- the Asian market was down where margins have historically tended to be higher. We saw an increase in Engineered Components as we mentioned -- as we received some stocking orders.

我們在第三季度看到 Gimatic 有所下滑。然後從第三季度到第四季度，有一項一次性費用是我們在第四季度進行了一些庫存調整，這影響了那裡的利潤率。然後正如湯姆所說，從第四季度到第一季度，這真的是一個關於聖萬提混合影響的故事。成交量下降——亞洲市場下跌，而歷史上利潤率往往較高。正如我們所提到的，我們看到工程組件有所增加——因為我們收到了一些庫存訂單。

So my expectation is that we will start to see us now have steady performance in those margins over the balance of this year, steady improvement, I would not anticipate seeing the ebbs and flows that we saw in prior year periods.

所以我的期望是，我們將開始看到我們現在在今年餘下的時間裡在這些利潤率方面表現穩定，穩步改善，我預計不會看到我們在去年同期看到的潮起潮落。

Got it. And then as a follow-up, just sticking with Industrial, maybe can you give a little more color on the benefit you saw from that stocking order either from a top or bottom line standpoint as we think about that in the context of the go-forward organic cadence for the Industrial business?

知道了。然後作為後續行動，只是堅持工業，也許你能從頂線或底線的角度更多地說明你從那個庫存訂單中看到的好處，因為我們在 go-工業企業的前進有機節奏？

And then Tom, it sounded like, in your prepared remarks, Phase 3 at least, if not Phase 1 and 2, it's fairly European heavy from a restructuring standpoint. And we know that's not an easy feat, especially in some of the countries you're talking about. So maybe give a little more detail to the extent you can. What are we talking about in terms of number of rooftops, timing and how kind of you think about being able to meet the objectives you set forth from both a cost and savings standpoint with Phase 3?

然後湯姆，在你準備好的發言中，聽起來至少是第 3 階段，如果不是第 1 和第 2 階段，從重組的角度來看，它相當歐洲沉重。我們知道這不是一件容易的事，尤其是在你所談論的一些國家。因此，請盡可能提供更多細節。我們在屋頂數量、時間以及您如何看待能夠從成本和節約的角度實現第 3 階段設定的目標方面談論什麼？

Sure. I think the short answer on the stocking order is, is that we really won't give too much color on that. It's a positive effect, but it's not something that's so noteworthy that we're going to break it out now, Matt. But the good news is that we've retained a lot of business with the Bristol move. We performed well for the customers, and that product was coming in on time. And as expected as you go through the shutdown period, you typically take final stocking orders before they place the orders into the facilities that we'll be supplying them going forward into the future.

當然。我認為關於庫存訂單的簡短回答是，我們真的不會對此給予太多色彩。這是一個積極的影響，但它不是我們現在要打破它的值得注意的東西，馬特。但好消息是我們在布里斯托爾的搬遷中保留了很多業務。我們為客戶提供了很好的服務，而且產品準時到貨。正如預期的那樣，當你經歷停工期時，你通常會在他們將訂單放入我們將在未來提供給他們的設施之前接受最終的庫存訂單。

But a small reminder is there's some revenue that we do not plan on moving going forward because of core margins of that facility. So we've discontinued some of those product lines. But in the overall mix, the product is moving well. The wind down is moving well. And this comment around really the last stocking order is more of an indication that that's usually the final step for the final production runs before shutting down the facility and it's on schedule, positive, but it's not a meaningful enough effect really to give you a lot of color on it.

但一個小小的提醒是，由於該設施的核心利潤率，我們不打算繼續推進一些收入。所以我們已經停止了其中一些產品線。但在整體組合中，產品進展順利。風向下移動良好。這條關於最後一個庫存訂單的評論更多地表明，這通常是關閉工廠之前最終生產運行的最後一步，它按計劃進行，積極的，但它並沒有足夠有意義的影響真的給你很多上面的顏色。

Phase 3 is a global initiative, Matt. It affects rooftops, both on the pitching and catching and in the Americas, in Asia, in Europe and China. So we've comprehensively looked at overhead across the organization, and there are overhead actions in this initiative that are at all levels of the organization. It also has multiple rooftops, a handful of rooftops that are affected in terms of consolidating our manufacturing footprint to drive more volume, higher capable facilities globally.

第三階段是一項全球倡議，馬特。它影響屋頂，無論是在投球還是接球，以及美洲、亞洲、歐洲和中國。因此，我們已經全面研究了整個組織的管理費用，並且在該計劃中存在組織各個級別的管理費用操作。它還有多個屋頂，少數屋頂在鞏固我們的製造足跡方面受到影響，以在全球範圍內推動更多容量、更高能力的設施。

There are European facilities involved. I noted that there are several in Germany already. And as you know, we're in Phase 1 and Phase 2, had a similar approach on these global initiatives where there's been rooftops affected in the Americas as well as in Europe as well as in Asia. So as part of balancing Phase 1 and Phase 2 and Phase 3 is to spread these rooftop consolidations out over time. We've done a very nice job of it. And despite already doing multiple facilities in Europe in the Phase 1 and Phase 2, we've kept those products in scope on schedule and on target.

涉及歐洲設施。我注意到德國已經有幾個了。如您所知，我們處於第 1 階段和第 2 階段，對這些全球倡議採取了類似的方法，在這些倡議中，美洲、歐洲和亞洲的屋頂都受到了影響。因此，作為平衡第 1 階段、第 2 階段和第 3 階段的一部分，是隨著時間的推移分散這些屋頂整合。我們做得很好。儘管已經在第一階段和第二階段在歐洲建立了多個設施，但我們已按計劃和目標將這些產品保持在範圍內。

So my confidence level on cost savings in achieving the objectives we've laid out is very high. We have dedicated resources in a business transformation office that are doing these products. They're separate from the business operational teams. So the level of rigor that we've used is very similar to what I've seen, used in the past, and I expect these despite having a year footprints that are affected that they will remain on schedule and be executed just as crisply as Phase I and Phase 2, and we'll realize the benefits in Phase 3, just like we haven't -- we are realizing in Phase 1 and Phase 2 in terms of time frame, investment and savings.

因此，我對在實現我們制定的目標方面節省成本的信心非常高。我們在業務轉型辦公室擁有專門的資源來開發這些產品。他們與業務運營團隊是分開的。因此，我們使用的嚴格程度與我過去所見和使用的非常相似，我希望這些儘管有一年的足跡受到影響，但它們仍將按計劃進行並像一樣清晰地執行第一階段和第二階段，我們將在第三階段實現收益，就像我們沒有實現的一樣——我們在第一階段和第二階段在時間框架、投資和儲蓄方面實現了收益。

We'll take our next question from Christopher Glynn with Oppenheimer.

我們將與奧本海默一起接受克里斯托弗格林的下一個問題。

On the restructuring, I was curious to hear about what you're looking at for the cash spend relative to the $58 million and the $29 million P&L investment for the 3 phases? What -- how are you thinking about the cash component of that?

關於重組，我很想知道您在尋找與 3 個階段的 5800 萬美元和 2900 萬美元損益投資相關的現金支出？什麼 - 你如何看待其中的現金部分？

Yes. So Chris, for this year, the net cash impact will be about $34 million is what we're looking at. And the majority of that will hit the first half of this year. So there was a chunk already in the first quarter associated with the first couple of phases, primarily and then Q2 is another big cash outflow quarter as its forecast, and it trails off over the back half of the year.

是的。所以克里斯，今年，我們所看到的淨現金影響將約為 3400 萬美元。其中大部分將在今年上半年發生。因此，第一季度已經有很大一部分與前幾個階段相關，主要是第二季度是另一個大的現金流出季度，正如其預測的那樣，它在今年下半年逐漸減少。

Okay. And then just taking a broad look at what you're doing across the 3 phases with the enterprise, the ambition is admirable, the overall action-oriented plan. But it's not easy to do. I wouldn't think there's culture and habits that will be in conflict at times. So wondering what some of the bespoke challenges you're seeing or anticipating and how responding as you shake things up?

好的。然後只是廣泛地看看你在企業的三個階段所做的事情，雄心壯志是令人欽佩的，整體的行動導向計劃。但這並不容易做到。我不認為有時會有衝突的文化和習慣。所以想知道您正在看到或預期的一些定制挑戰，以及當您改變現狀時如何應對？

Well, it's been, as you know, Chris, a busy 9 months since transitioning the CEO chair with Julie. And we have been consciously progressing a phased approach to this so that we don't result in a cultural revolution as part of this process. It's an evolution, and we very consciously have been doing this across the Industrial portfolio as a team. It has been a lot of communication has been to almost every industrial major operating facility globally. And as we've led with communication and clarity with what our plans are around our strategy to the team, we've recruited in the leaders that have been able to execute either the programs or the core business execution to back this up.

好吧，正如你所知，Chris 自從與 Julie 交接 CEO 主席以來已經忙碌了 9 個月。我們一直在有意識地採取分階段的方法來解決這個問題，這樣我們就不會在這個過程中導致文化革命。這是一種進化，我們非常有意識地作為一個團隊在整個工業產品組合中這樣做。全球幾乎每個工業主要運營設施都進行了大量溝通。當我們通過溝通和清晰地了解我們的計劃圍繞我們的團隊戰略時，我們已經招募了能夠執行計劃或核心業務執行的領導者來支持這一點。

And we've done that in a fashion that's very professional, highly communicative so that we end up making sure that the company understands why we're doing these things. This is oriented like we say in our initiative around integrating the company, consolidating facilities and rationalizing overhead so they're very clear on what the end objectives are.

我們以一種非常專業、高度溝通的方式做到了這一點，因此我們最終確保公司理解我們為什麼要做這些事情。這就像我們在整合公司、整合設施和合理化間接費用的倡議中所說的那樣，因此他們非常清楚最終目標是什麼。

And each piece obviously fits that macro. So I find the communication and clarity and candor is very important to make sure that the culture is coming along. It's not an easy journey. I've done a lot of this in my career as well as other leadership team members, including Julie. And I would say you never can communicate too much, but it is really driven by the leadership team and the consistency of performance.

每件作品顯然都符合那個宏。所以我發現溝通、清晰和坦率對於確保文化的發展非常重要。這不是一個輕鬆的旅程。我和其他領導團隊成員（包括朱莉）在我的職業生涯中做過很多這樣的事情。而且我會說你永遠不會溝通太多，但這實際上是由領導團隊和績效的一致性驅動的。

I think when we started this last year, after just getting on Board with Julie, is much harder to gain momentum in this area. Today, we have a lot of momentum. We have products completing. So then with that momentum, it's a lot easier to undertake Phase 3, which is much larger in the scope. It's across the entire company, including Aerospace, Industrial and the overhead structures. And that is really the momentum of Phase 1 and Phase 2 has really set that up to be possible.

我認為當我們去年開始時，在剛剛與 Julie 一起加入董事會之後，在這個領域獲得動力要困難得多。今天，我們有很大的動力。我們有產品完成。因此，有了這種勢頭，進行範圍更大的第 3 階段就容易多了。它遍及整個公司，包括航空航天、工業和架空結構。這確實是第 1 階段的勢頭，第 2 階段確實使它成為可能。

The last comment I'll make is, this is in full coordination and synchronization of the Board of Directors. We have very tight governance and management of these programs. I think, in totality, there's individual line items that are over 60 line items of initiatives that we're running, and then I'm quite pleased with our professional we're doing it. And thus far, the culture has been evolving along to a more integrated company in the process quite nicely. And only 9 months in, I'm quite pleased with how far we've gotten already.

我要發表的最後評論是，這是在董事會的全面協調和同步下進行的。我們對這些項目進行了非常嚴格的治理和管理。我認為，總的來說，我們正在運行超過 60 個項目的單獨項目，然後我對我們正在做的專業感到非常滿意。到目前為止，這種文化一直在很好地演變為一家更加一體化的公司。僅僅 9 個月後，我對我們已經取得的進展感到非常滿意。

We will take our next question from Michael Ciarmoli with Truist.

我們將與 Truist 一起接受 Michael Ciarmoli 的下一個問題。

Nice start to the year here. Tom, I guess, just the confidence level in the second half Industrial margin expansion, you need to run rate, I guess, something just over 10. I feel like we've been here, we've done this before with bad results, and there's always been some sort of forecast embedded in the outlook outside of your control. But I just wanted to get the comfort level, maybe some of the variables?

在這裡開始新的一年。湯姆，我想，只是下半年工業利潤率擴張的信心水平，你需要運行率，我想，剛好超過 10。我覺得我們來過這裡，我們以前做過這件事，但結果很糟糕，並且總是有某種預測嵌入在您無法控制的前景中。但我只是想獲得舒適度，也許是一些變量？

And if I look at maybe the negative variables that you outlined in the deck for 2023, I don't see any disruption in there. I mean just going back to this Phase 3, it's got a lot of movement, a lot of consolidation. Wanted to get a handle on the risk there. And maybe specifically on Aerospace, if you're moving anything to new facilities into different geographies, is there a requalification risk? Is there a timing risk on some of those products specifically?

如果我看看你在 2023 年的套牌中概述的負面變量，我看不到其中有任何中斷。我的意思是回到這個第 3 階段，它有很多動作，很多整合。想要控制那裡的風險。也許特別是在航空航天領域，如果您要將任何東西轉移到不同地區的新設施中，是否存在重新認證的風險？其中一些產品是否存在時間風險？

Yes. I think confidence level is high. Workload is high. There's a lot moving in parallel, Mike. One clarification on facility consolidations, the -- most of the facility consolidations we've done in Phase 1 and Phase 2 and also for Phase 3, both in Industrial and Aerospace. We're moving our operations and production from facilities to existing Barnes facilities that already make similar or the same products.

是的。我認為信心水平很高。工作量大。邁克，有很多並行的事情。關於設施整合的一個澄清，我們在工業和航空航天領域的第一階段和第二階段以及第三階段完成的大部分設施整合。我們正在將我們的運營和生產從工廠轉移到已經生產類似或相同產品的現有 Barnes 工廠。

So when you're moving a facility to an existing facility and kind of consolidating your volume, especially if you can move it to a site that has labor advantages, cost advantages, you're moving all of your production into a central location. It doesn't -- it requires qualifications for the moves with customers, but it isn't like a greenfield de novo product where everything has to be requalified from day 1.

因此，當您將設施移動到現有設施並整合您的數量時，特別是如果您可以將其移動到具有勞動力優勢、成本優勢的站點，您就是在將所有生產轉移到一個中心位置。它不需要——它需要與客戶的移動資格，但它不像一個全新的產品，所有的東西都必須從第一天開始就重新獲得資格。

Those are much more complex. And as you fairly point out, Mike is there sometimes time line unpredicted. So the approach we're taking is very logical to aggregate our volumes into central facilities create larger leverage by having more volume through that rooftop. And that takes place through the Industrial moves. It's taking place through the Aerospace move as part of this project. And we really get down by product line and by customer and having done a lot of this in my career.

這些要復雜得多。正如您所指出的那樣，邁克有時會出乎意料。因此，我們採取的方法是非常合乎邏輯的，將我們的數量聚集到中央設施中，通過通過屋頂獲得更多數量來創造更大的槓桿作用。這是通過工業行動發生的。作為該項目的一部分，它正在通過航天移動進行。我們真的按產品線和客戶進行調查，並且在我的職業生涯中做了很多這樣的事情。

The approach we're taking has been very successful using this approach and not trying to do de novo projects is -- and you can imagine with focus in 2 areas: core business execution and the initiatives around integrate consolidated rationalize. We know there's inflationary pressures, high interest rates, global dynamics, geopolitics, potentially looming recession. Our job is to manage all of those effects and have the ability to actively manage the business in a way that can mitigate those. We're not immune from global pressures, but part of the idea behind focusing, one, sort of the team on core business execution to driving success and another on initiatives we get both done.

我們採用的方法使用這種方法非常成功，而不是嘗試從頭開始項目——你可以想像重點放在兩個領域：核心業務執行和圍繞整合整合合理化的舉措。我們知道存在通脹壓力、高利率、全球動態、地緣政治和潛在的衰退。我們的工作是管理所有這些影響，並有能力以能夠減輕這些影響的方式積極管理業務。我們不能免受全球壓力的影響，但重點背後的想法的一部分，一個是核心業務執行團隊推動成功，另一個是我們完成的計劃。

So given that we're working on those 2 and investing heavily in those 2 areas, they deliver results. We have cautious confidence that we'll be able to deliver against the year when we average out the mix of all these effects, some in our favor, like Aerospace with Industry recovery. Some potential looming negative effects, but we've got to manage them all and we do it actively.

因此，鑑於我們正在研究這兩個領域並在這兩個領域進行大量投資，他們取得了成果。我們謹慎地相信，當我們將所有這些影響的組合平均起來時，我們能夠在今年實現目標，其中一些對我們有利，例如航空航天與行業復甦。一些潛在的負面影響迫在眉睫，但我們必須對它們進行管理，而且我們會積極地進行管理。

And the initiatives, obviously, we're leading into extremely aggressively here because we know we need to become a more efficient and effective company, so we can afford more investments into the markets. We're trying to penetrate either geographically or product wise. So is -- my confidence level is high just because we've already successfully been doing this in Phase 1 and Phase 2 plan. And I think Phase 3, while larger in scope, is the similar type degree of difficulty products for us to deliver again.

顯然，我們在這裡非常積極地採取這些舉措，因為我們知道我們需要成為一家更有效率和更有效的公司，這樣我們才能負擔得起更多的市場投資。我們正試圖在地理或產品方面進行滲透。也是——我的信心水平很高，因為我們已經在第一階段和第二階段計劃中成功地做到了這一點。而且我認為第 3 階段雖然範圍更大，但對於我們再次交付來說是類似難度的產品。

Got it. Got it. That's helpful. And I guess not to put the cart ahead of the horse here, but if I look at the total run rate savings, $53 million, how much of that is going to actually drop to operating income? I mean clearly, there's inflationary costs that are going to be sustained, whether it's labor or what have you.

知道了。知道了。這很有幫助。我想在這裡不要本末倒置，但如果我看一下節省的總運行率，5300 萬美元，其中有多少實際上會下降到營業收入？我的意思是很清楚，通貨膨脹成本將持續下去，無論是勞動力還是你有什麼。

But I mean, are we thinking -- if I go back to pre-COVID, thinking about kind of you guys operating at a 15% to 16% corporate margin, I mean, should we be thinking you can take this 18.5%, 19.5% with these kind of run rate savings once we get out past '25?

但我的意思是，我們是否在想——如果我回到 COVID 之前，想想你們這些人以 15% 到 16% 的公司利潤率運營，我的意思是，我們是否應該認為你們可以拿下 18.5% 到 19.5%一旦我們過了 25 年，這種運行率節省的百分比是多少？

Mike, thanks for the question, very leading and very forward looking. But I would say that, as I've said before, when we address this question, my expectation is with the core business -- even though it's a very different world, pre-COVID and post-COVID, with where Barnes is going in terms of executing against core business and with the integration, consolidation, rationalize initiatives, our first objective is to get to the return of our revenue and profitability to levels that are pre-COVID.

邁克，謝謝你提出這個問題，非常具有領導性和前瞻性。但我要說的是，正如我之前所說，當我們解決這個問題時，我的期望是核心業務——儘管這是一個非常不同的世界，在 COVID 之前和之後，巴恩斯將進入的領域就核心業務的執行以及整合、合併和合理化舉措而言，我們的首要目標是將我們的收入和盈利能力恢復到 COVID 之前的水平。

Even though the macro economy and the global dynamics and interest rates and FX and everything has all changed, our job is to get the company more efficient and effective to be able to serve the markets with the levels of performance that are at or above where we've historically been.

儘管宏觀經濟和全球動態、利率和外匯以及一切都發生了變化，但我們的工作是讓公司更有效率和效力，以便能夠以等於或高於我們的績效水平為市場服務歷史上有過。

So it's a journey. I've only been on Board 9 months working with Julie and the team. We've made a lot of progress. But as you barely pointed out, to get back up into the mid-teens margin, which again higher where are these plans and strategies are being invested in to deliver, we've got a lot of work to do. But directionally, although we have not reconfirmed what we communicated at Investor Day for December 2019 time frame is our objective really is to continue to press very hard for the -- excuse me, as of 2019 and the 2021 time frame, is continue to press very hard to return the profitability of our revenue streams back at those levels.

所以這是一個旅程。我在董事會與 Julie 和團隊一起工作僅 9 個月。我們取得了很大的進步。但正如你幾乎沒有指出的那樣，要回到十幾歲中期的利潤率，這再次提高了這些計劃和戰略正在投資交付的地方，我們還有很多工作要做。但在方向上，儘管我們還沒有再次確認我們在 2019 年 12 月的投資者日所傳達的時間框架是我們的目標，但我們的目標確實是繼續非常努力——對不起，截至 2019 年和 2021 年的時間框架，是繼續施壓很難將我們收入流的盈利能力恢復到這些水平。

We will take our next question from Myles Walton with Wolfe Research.

我們將接受 Myles Walton 和 Wolfe Research 的下一個問題。

This is Greg Dahlberg on for Myles. One quick question on the OEM outlook. So it looks like it kicked up from mid-teens this quarter to low double digits previously. I guess is that more confidence in OEM production and kind of supply chains in general? Or can you talk through the pieces there?

這是邁爾斯的格雷格達爾伯格。一個關於 OEM 前景的快速問題。所以看起來它從本季度的十幾歲中期上升到之前的低兩位數。我想這是對 OEM 生產和一般供應鏈更有信心嗎？或者你能談談那裡的作品嗎？

Certainly, is -- we are very output driven right now is there is a lot of supply chain pressure within the OEM as it's ramping back up again. I think that's well documented across a lot of industry publication and information that's already disclosed at other companies. We have a lot of backlog that we're working off. As you know, from our comments, we've been staffing up our teams and trying to get them more efficient and productive from an output perspective.

當然，是——我們現在非常注重產出，因為 OEM 再次回升時，供應鏈壓力很大。我認為許多行業出版物和其他公司已經披露的信息都有很好的記錄。我們正在處理大量積壓工作。如您所知，根據我們的評論，我們一直在為我們的團隊配備人員，並試圖從輸出的角度提高他們的效率和生產力。

So I would say we are -- certainly have supply chain constraints on materials and castings are typically very sensitive too. What is right now, we're trying to do the best we can to get more out the door against customer requirements. So I still think there's a fair amount of recovery on the OEM side. And in a different way in the aftermarket side with obviously more flying occurring, the aftermarket has also recovered, and we're in a similar situation where we're trying to get our outputs up on the aftermarket side to match pace.

所以我想說我們 - 當然有材料和鑄件的供應鏈限制通常也非常敏感。現在的情況是，我們正在盡最大努力根據客戶要求推出更多產品。所以我仍然認為 OEM 方面有相當大的複蘇。在售後市場方面，以不同的方式發生了明顯更多的飛行，售後市場也已經恢復，我們處於類似的情況，我們正試圖在售後市場方面提高我們的產量以匹配步伐。

So we are obviously providing that kind of teens guidance, driven by just trying to catch up with the pull of the overall industry as their volume is on single and wide bodies recovering. And I would say just in general, is that recovery, we're just behind that, and we're pushing hard to continue to catch up and I think it will take most of '23 for us to try to run this down.

因此，我們顯然正在提供這種青少年指導，只是想趕上整個行業的吸引力，因為他們的體量正在恢復中。我想說的是，總的來說，是複蘇，我們只是落後於它，我們正在努力繼續追趕，我認為我們將花費 23 年的大部分時間來嘗試將其降低。

And as the Industry continues to strengthen, we have to keep speeding up to maintain pace. So it's a favorable set of circumstances, but we have a lot of operational challenges to onboard people and get the supply chain of raw materials, castings, et cetera, into our plans to be able to keep pace. So I do think there's going to be a delicate balance over the course of '23.

隨著行業的不斷加強，我們必須不斷加快步伐以保持步伐。因此，這是一個有利的環境，但我們面臨著很多運營挑戰，要讓員工入職，並將原材料、鑄件等的供應鏈納入我們的計劃，以便能夠跟上步伐。所以我確實認為在 23 年的過程中會有一個微妙的平衡。

Got it. That's helpful. And then just one quick one on leverage. So I think you guys are sitting at just around 2.4x in the quarter. The target from the '21 Investor Day was 2.5x, I guess. Flowing that into the core business execution, the restructuring efficiency plans, is that kind of the right target to think about more longer term? Or does that change as efficiencies flow through?

知道了。這很有幫助。然後只是關於槓桿的一個快速的。所以我認為你們在本季度的市盈率為 2.4 倍左右。我猜，'21 投資者日的目標是 2.5 倍。將其納入核心業務執行、重組效率計劃，是否是考慮更長期的正確目標？還是隨著效率的提高而改變？

I'll let Julie take that...

我會讓朱莉拿走那個……

Yes. Greg, so 2.5x, I think, is a nice target range for us. It really depends, though, strategically on what's happening, as Tom mentioned. We're assessing acquisition options. If something were to go through that, leverage range may change. Honestly, in the current interest rate environment, we're working to see what cash we have available. We want to minimize interest expense.

是的。格雷格，所以我認為 2.5 倍對我們來說是一個不錯的目標範圍。正如湯姆所說，這實際上在戰略上取決於正在發生的事情。我們正在評估收購方案。如果事情經歷了那個過程，槓桿範圍可能會改變。老實說，在當前的利率環境下，我們正在努力看看我們有多少可用現金。我們希望最大限度地減少利息支出。

So looking at maybe channeling cash to pay down debt a little would take that leverage ratio down in the near term. But in terms of a long-range point where we'd like to keep things, there's not really been a change in our point of view on around 2.5x.

因此，考慮用現金來償還債務可能會在短期內降低杠桿率。但就我們希望保留的長期點而言，我們對 2.5 倍左右的觀點並沒有真正改變。

(Operator Instructions) We will take a follow-up question from Michael Ciarmoli with Truist.

（操作員說明）我們將與 Truist 一起回答 Michael Ciarmoli 的後續問題。

Just on the hot runner weakness, I guess, into the auto market. I mean, what -- Thomas, you're getting into this business and kind of turn everything upside down, what should we really be looking at to gauge the health of that business? Is it model changes? Or is it really production? Or what's kind of the view there?

只是熱流道的弱點，我猜，進入汽車市場。我的意思是，Thomas，你進入這個行業並有點顛倒一切，我們應該真正關注什麼來衡量該業務的健康狀況？是模型變化嗎？還是真的在生產？或者那裡的景色如何？

Yes, it's a great question, Mike. It's different by zone. I think for us, on the automotive hot runner side, this has been a business for us in North America. It's getting better penetration into the North American market, feet on the street and getting in front of customers more aggressively. In our European business, I think, as you know, we've made a lot of investments last year to bring on feet on the street and be able to be more competitive penetrating accounts in Europe.

是的，這是一個很好的問題，邁克。各區不一樣。我認為對於我們來說，在汽車熱流道方面，這一直是我們在北美的一項業務。它正在更好地滲透到北美市場，走在大街上，更積極地出現在客戶面前。在我們的歐洲業務中，我認為，如你所知，我們去年進行了大量投資，以便在大街上站穩腳跟，並能夠在歐洲成為更具競爭力的滲透客戶。

We do have competitive pressure in Europe, that's a significant competition, but we feel we've got some really nice product line capability on the margin side. Part of our cost actions in Phase 3 are to address high cost basis operations that we have in this product line to be able to drive better margins by having manufacturing done in lower-cost environments to get profitability.

我們在歐洲確實有競爭壓力，這是一場激烈的競爭，但我們覺得我們在利潤方面有一些非常好的產品線能力。我們在第 3 階段的部分成本行動是解決我們在該產品線中的高成本基礎運營，以便能夠通過在低成本環境中完成製造以獲得盈利來提高利潤率。

But I think on the Europe side, our commercial investments in the Automotive hot runners areas have been quite successful already that we've invested in. The last thing would be Asia, China. There, the story is more one of product lines. As you know, in China, in particular, we've historically been very oriented towards selling our Automotive hot runner product line, which is a very premium product line to Westernized OEMs manufacturing in China as that market is growing and shifting to the hundreds literally of HEV and EV type vehicle customers that are China-based.

但我認為在歐洲方面，我們在汽車熱流道領域的商業投資已經非常成功，我們已經投資了。最後一件事是亞洲，中國。在那裡，故事更多的是產品線之一。如您所知，特別是在中國，我們歷來非常注重銷售我們的汽車熱流道產品線，隨著中國市場的增長和轉移到數百個字面上，對於在中國製造的西化 OEM 來說，這是一個非常優質的產品線中國的 HEV 和 EV 類型車輛客戶。

And we've not historically sold into that channel. We don't have a product line that's matched into that channel. So in that area, we've reenergized the commercial team. We're reorienting it away from just the large multinational OEM automotive manufacturers towards the domestic manufacturers. And due to -- from my experience before coming to Barnes that I had in the Automotive Industry and Molding, especially with large operations in China, this is a distinct product line shift that has to occur between what a multinational company and kind of Chery Automotive or BYD would order sort of reorienting the product line, and we're reconstituting the commercial team there.

而且我們歷史上沒有銷售到那個渠道。我們沒有與該渠道匹配的產品線。因此，在那個領域，我們重新激活了商業團隊。我們正在將其重新定位，從大型跨國 OEM 汽車製造商轉向國內製造商。由於——根據我在加入巴恩斯之前在汽車行業和模具行業的經驗，尤其是在中國的大型業務，這是一個獨特的產品線轉變，必須在跨國公司和奇瑞汽車之間發生或者比亞迪會下令重新調整產品線，我們正在重組那裡的商業團隊。

And expectation is overall in Automotive hot runners should be a growth area for us, Mike. It is not then because we have incorrect solutions by zone. So it's a very granular answer for you, but the solution sets are different by Europe, America and China based on the realities of those markets. And the good thing about it is we've done a good job of diagnosing it. Now we're getting in and putting these solutions in place to drive growth.

邁克，汽車熱流道的總體預期應該是我們的增長領域。那不是因為我們有不正確的區域解決方案。所以這對你來說是一個非常細化的答案，但是根據歐洲、美國和中國市場的實際情況，解決方案集是不同的。它的好處是我們在診斷方面做得很好。現在我們正在進入並實施這些解決方案以推動增長。

And with no further questions at this time, I will now turn the call back to Bill Pitts for closing remarks.

現在沒有其他問題了，我現在將把電話轉回給比爾皮茨，讓他發表結束語。

Thank you, Abby. We'd like to thank you all for joining us this morning and look forward to speaking with you next in July for our second quarter 2023 earnings conference call. Operator, we will now conclude today's call.

謝謝你，艾比。我們要感謝大家今天早上加入我們，並期待在 7 月的 2023 年第二季度收益電話會議上與您交談。接線員，我們現在結束今天的電話會議。

Thank you. And ladies and gentlemen, this concludes today's conference call, and we thank you for your participation. You may now disconnect.

謝謝。女士們，先生們，今天的電話會議到此結束，我們感謝您的參與。您現在可以斷開連接。