賓士域 (BC) 2017 Q3 法說會逐字稿

Good morning, and welcome to Brunswick Corporation's 2017 Third Quarter Earnings Conference Call. (Operator Instructions) Today's meeting will be recorded. If you have any objections, you may disconnect at this time.

早安，歡迎參加Brunswick Corporation 2017年第三季財報電話會議。(接線員指示) 今天的會議將被錄音。如有任何異議，您可於此時中斷連線。

I would now like to introduce Ryan Gwillim, Vice President, Investor Relations.

現在我想介紹Ryan Gwillim，投資人關係副總裁。

Good morning, and thank you for joining us. On the call this morning are Mark Schwabero, Brunswick's Chairman and CEO; and Bill Metzger, CFO.

早安，感謝各位加入我們今天的電話會議。今天早上的與會者包括Brunswick董事長兼執行長Mark Schwabero，以及財務長Bill Metzger。

Before we begin with our prepared remarks, I would like to remind everyone that during this call, our comments will include certain forward-looking statements about future results. Please keep in mind that our actual results could differ materially from these expectations.

在開始我們事先準備的發言之前，我想提醒各位，本次電話會議中的評論將包含若干關於未來結果的前瞻性陳述。請注意，我們的實際結果可能與這些預期存在重大差異。

For the details on the factors to consider, please refer to our recent SEC filings and today's press release. All of these documents are available on our website at brunswick.com.

關於需考量之因素的詳細資訊，請參閱我們近期向SEC提交的文件以及今天的新聞稿。上述文件皆可於我們網站brunswick.com取得。

During our presentation, we will be referring to certain non-GAAP financial information. Reconciliations of GAAP to non-GAAP financial measures are provided in the reconciliation sections of the consolidated financial statements accompanying today's results.

在簡報過程中，我們將引用若干非GAAP財務資訊。GAAP與非GAAP財務衡量指標之調節表，已提供於隨今日結果一併發布之合併財務報表的調節章節中。

I would now like to turn the call over to Mark.

現在我想把電話交給Mark。

Thank you, Ryan, and good morning, everyone. Today, I will focus my remarks on our third quarter results as well as provide insights into the global Marine and Fitness markets. Bill will elaborate on our financial performance, including comments pertaining to our segments as well as our P&L and cash flow expectations. I'll then wrap up with our outlook on the remainder of 2017 and a preliminary view on 2018.

謝謝你，Ryan，各位早安。今天我將把重點放在我們第三季的業績，同時分享對全球海事（Marine）與健身（Fitness）市場的觀察。Bill將進一步說明我們的財務表現，包括對各事業部門的評論，以及我們對損益表與現金流的預期。最後我將就2017年剩餘期間的展望作結，並提供對2018年的初步看法。

As we look to the fourth quarter and assess our business opportunities and risks, despite facing challenges in the second half of the year, we are confident in our ability to execute in this environment and believe that 2017 will result in another year of strong revenue and earnings performance, along with excellent cash flow generation.

展望第四季並評估我們的商機與風險，儘管今年下半年面臨挑戰，我們仍對在此環境中執行的能力充滿信心，並相信2017年將再度呈現強勁的營收與獲利表現，同時帶來優異的現金流創造。

With about 90% of the Marine season complete, we have seen the U.S. Marine market largely perform consistent with our expectations. Overall demand in international Marine markets also remains strong. Our emphasis on product leadership continues to position us to capitalize on the growing Marine market.

在海事旺季約完成90%之際，我們看到美國海事市場的表現大致符合我們的預期。整體而言，國際海事市場的需求也仍然強勁。我們對產品領導地位的重視，持續使我們能把握海事市場成長的機會。

Our largest business, Mercury Marine, continues to leverage this market growth into outstanding performance and resulting share gains through overall operating excellence. And almost all of our boat brands, including Boston Whaler and Lund, continued to report strong results.

我們最大的業務Mercury Marine，持續透過整體營運卓越，將市場成長轉化為出色的表現並帶來市占提升。而我們幾乎所有的船艇品牌（包括Boston Whaler與Lund）也持續回報強勁的結果。

However, we're not without certain challenges and are disappointed with our overall third quarter results. We faced certain headwinds in the quarter, which led to a decline in boat earnings.

然而，我們並非沒有挑戰，且對第三季整體結果感到失望。本季我們遭遇若干逆風，導致船艇業務獲利下滑。

As previously discussed on the second quarter call, we significantly lowered production in our large fiberglass sterndrive/inboard boat category as we meaningfully reduced pipelines from second quarter levels in response to the weak demand over the last several quarters. In addition, during September, Hurricane Irma disrupted our Florida-based manufacturing operations.

如同先前在第二季電話會議中所討論，我們在大型玻璃纖維艉驅／內置引擎（sterndrive/inboard）船艇類別大幅降低產量，因應過去數季需求疲弱，我們也相當程度地將通路庫存水位自第二季水準加以降低。此外，9月期間，颶風Irma干擾了我們位於佛羅里達州的製造營運。

In our Fitness segment, results trailed our expectations as we experienced a more challenging global market environment, which affects both our sales volume and our margins, which I'll discuss in greater detail in a moment. Despite these challenges, we continue to believe that the long-term Fitness market fundamentals are solid. And given our emphasis on product leadership, operational excellence and technology development, we remain confident that we will be successful in this evolving Fitness marketplace.

在健身事業部門方面，由於我們面臨更具挑戰的全球市場環境，影響了銷售量與毛利率，因此業績落後於我們的預期，我稍後會更詳細說明。儘管有這些挑戰，我們仍相信健身市場的長期基本面穩健。並且鑑於我們對產品領導、營運卓越與技術開發的重視，我們仍有信心能在這個持續演變的健身市場中取得成功。

Third quarter revenue in 2017 increased by 4.4%, and our gross margins for the quarter were 27.4%. Adjusted pretax earnings decreased by 3.9%, while diluted EPS as adjusted of $0.91 was consistent with third quarter of 2016.

2017年第三季營收成長4.4%，本季毛利率為27.4%。調整後稅前盈餘下滑3.9%，而調整後稀釋每股盈餘（EPS）為0.91美元，與2016年第三季一致。

Mercury Marine continues to outperform the market where its outboard engine business continues to leverage a favorable retail demand environment, particularly for higher horsepower engines, leading to share gains in many markets. In addition, the recurring nature of the parts and accessory business continues to provide steady revenue and earnings growth throughout the year, and we are successfully executing our growth strategy for these businesses.

Mercury Marine持續優於市場表現，其舷外機業務持續受惠於有利的零售需求環境，尤其是較高馬力引擎，因而在多個市場帶來市占提升。此外，零件與配件業務具備經常性特質，全年持續提供穩定的營收與獲利成長，我們也正成功執行這些業務的成長策略。

Finally, the aluminum outboard boat business is taking advantage of a growing market, which together with new product introductions, is also resulting in strong performance.

最後，鋁製舷外機船艇業務正把握市場成長機會，並結合新產品推出，同樣帶來強勁表現。

We continue to execute on our capital strategy in the quarter. In response to an attractive valuation opportunity, we increased our share repurchases in the third quarter to $60 million, accelerating repurchases planned for the fourth quarter. In addition, earlier this month, we increased our quarterly dividend by 15% to $0.19 per share. Both of these actions reiterate our confidence in our strategy.

本季我們持續執行資本策略。因應具吸引力的估值機會，我們在第三季將庫藏股回購提高至6,000萬美元，提前執行原訂第四季的回購計畫。此外，本月稍早我們將季度股利提高15%至每股0.19美元。這兩項行動再次強化我們對策略的信心。

Now I'll provide our perspective on the U.S. Marine market, which is performing in line with our expectations. Based upon preliminary SSI data for the third quarter, which on average comprises about 45% of the year at retail, the industry unit volumes grew approximately 2%, leading to a year-to-date growth rate of 5%.

接下來我將分享我們對美國海事市場的看法，其表現符合我們的預期。根據第三季初步SSI數據（平均約占全年零售的45%），產業銷量約成長2%，使年初至今的成長率達到5%。

On our second quarter call, we anticipated that the first half performance would be revised upwards as states completed their reporting, which did occur. We based our view on several other data points, including floor plan lending activity and industry outboard engine registrations, which are now relatively consistent with the year-to-date SSI trends.

在第二季電話會議中，我們預期隨著各州完成申報，上半年表現將被向上修正，而這確實發生了。我們的觀點也基於其他數據點，包括分期（floor plan）融資活動與產業舷外機登記數，這些目前與年初至今的SSI趨勢相對一致。

On specific market segments, the outboard boat demand remains healthy, increasing by approximately 6% year-to-date, while outboard engine retail demand is up 5%. Fiberglass sterndrive/inboard units declined by 7% in the year-to-date period as more products in this category shift to outboard propulsion. The fiberglass sterndrive/inboard boats in the 41-foot to 65-foot range are down 9% for the year, which is consistent with our view of this category and consistent with our previous calls. While SSI data was positive in the third quarter, we believe this is a result of reporting timing and does not indicate a change in market trends.

就特定市場區隔而言，舷外機船艇需求仍然健康，年初至今約成長6%，而舷外機零售需求成長5%。玻璃纖維艉驅／內置引擎機型年初至今下滑7%，因該類別更多產品正轉向舷外機推進。41英尺至65英尺的玻璃纖維艉驅／內置引擎船艇全年下滑9%，這與我們對該類別的看法一致，也與我們先前電話會議的說法一致。雖然第三季SSI數據為正成長，我們認為這是申報時點所致，並不代表市場趨勢出現改變。

The retail market was also negatively affected by the August and September hurricanes and will likely have an impact for the rest of the year. The affected areas represent approximately 25% of the U.S. retail sales from the start of September through the end of the year with those 4 months constituting about 15% of the total retail sales in the U.S. for the year. Consistent with market reactions following previous hurricanes, we expect the replacement activity related to damaged boats to take up to 18 months, potentially resulting in a slight tailwind as we move through 2018.

零售市場也受到8月與9月颶風的負面影響，且可能在今年剩餘期間持續造成影響。受影響地區約占美國自9月初至年底的零售銷售約25%；而這4個月約占美國全年總零售銷售的15%。依循過去颶風後的市場反應，我們預期受損船艇的汰換需求可能需要長達18個月，隨著進入2018年，可能帶來些微順風。

Next, I would like to share some perspectives on our retail for -- excuse me, retail data for Boats based upon our pipeline inventory activity. Our internal U.S. retail boat registrations were up 9% in the quarter and 4% year-to-date. The year-to-date performance is slightly below the overall industry but better than the results reflected in the SSI retail performance data reported for Brunswick.

接下來，我想分享一些關於我們零售的觀點——抱歉，是根據我們通路庫存活動所得到的船艇零售數據。我們內部統計的美國船艇零售登記在本季成長9%，年初至今成長4%。年初至今的表現略低於整體產業，但優於SSI零售表現數據中所反映的Brunswick結果。

We believe that we are performing favorably against the market in many of our boat categories with the growth in the pontoon boats trailing behind the industry trends. This is consistent with our comments on the second quarter call when we noted that production constraints curtailed pontoon shipments and affected retail activity. We've improved our production capabilities in the third quarter and feel very comfortable with our ability to satisfy demand moving into the new model year.

我們認為，在我們多個船艇品類中，我們相較於市場表現良好；其中浮筒船（pontoon boats）的成長落後於產業趨勢。這與我們在第二季電話會議中的評論一致，當時我們指出生產限制抑制了浮筒船出貨，並影響了零售活動。我們在第三季已提升生產能力，並對於在進入新款式年度（new model year）時滿足需求的能力感到非常有信心。

Global retail's unit sales grew 4% for the quarter and 3% to date. This year-to-date trend, growth trend, is consistent with our annual performance in prior years and is consistent with our 3% to 5% unit growth target. International markets have contributed to our growth rate in 2017, after being a headwind for several years.

全球零售的單位銷量本季成長4%，年初至今成長3%。這項年初至今的成長趨勢與我們過去幾年的年度表現一致，也符合我們3%至5%的單位成長目標。在2017年，國際市場對我們的成長率有所貢獻；而在此前數年，國際市場一直是逆風因素。

Next, I would like to review our current perspectives on the regional Marine markets. Revenue growth in Europe reflected a favorable market environment in the first 9 months of 2017, and our performance exceeded market growth rates. Our plan reflects growth in the European retail boat market for the full year at rates similar to the year-to-date period.

接下來，我想回顧我們目前對各區域海事（Marine）市場的看法。歐洲營收成長反映了2017年前9個月有利的市場環境，且我們的表現超越市場成長率。我們的計畫預期歐洲零售船艇市場全年將以與年初至今期間相近的速度成長。

In Canada, retail and wholesale unit demand in the first 9 months improved versus the prior year as we anticipated more favorable economic conditions and a relatively stable exchange rate environment. Our full year outlook assumes that the demand environment will continue to recover.

在加拿大，前9個月的零售與批發單位需求較去年改善，符合我們對更有利經濟情勢及相對穩定匯率環境的預期。我們對全年展望的假設是需求環境將持續復甦。

In the remaining regions, the engine business continues to pursue targeted share gains in Asia and Latin America markets through enhancing its distribution and service presence and capitalizing on our expanded Sea Pro branded commercial engines.

在其餘地區，引擎業務持續透過強化通路與服務據點，並運用我們擴大的 Sea Pro 品牌商用引擎產品線，在亞洲與拉丁美洲市場追求具針對性的市占提升。

Latin American markets are also slowing -- showing signs of recovery, absent the Caribbean market, which remains challenged, while Asia Pacific and Africa and Middle East markets continue to be stable.

拉丁美洲市場也正在放緩——但在不包含仍具挑戰的加勒比市場情況下，已顯示復甦跡象；而亞太以及非洲與中東市場則持續保持穩定。

Overall, the international Marine market demand has been solid in 2017 with positive unit growth and has exceeded our initial expectations. Our overall Marine growth in dollars will exceed the market unit growth rates, reflecting improvements in mix as well as benefits from recently completed acquisitions.

整體而言，2017年國際海事市場需求穩健，單位數量呈正成長，且超出我們最初的預期。我們海事業務以美元計的整體成長將超過市場單位成長率，反映產品組合改善，以及近期完成併購所帶來的效益。

Moving to our Fitness segment, revenue increased year-to-date by 2% on a constant currency basis, excluding acquisitions. Our revenue performance in the quarter was flat on a comparable basis. For the year, the North American and European commercial Fitness equipment markets have been flat.

接著談到我們的健身（Fitness）事業部，若以固定匯率基礎並排除併購影響，年初至今營收成長2%。本季在可比基礎下，我們的營收表現持平。就全年而言，北美與歐洲的商用健身器材市場維持持平。

Value-oriented franchise clubs continue to grow and invest, while sales to traditional clubs and certain vertical markets have declined. We continue to believe that the traditional clubs are slowing investments as they evaluate alternatives in response to a change in exercise preferences.

以價值導向的連鎖健身房持續成長並加大投資，而對傳統健身房及部分垂直市場的銷售則有所下滑。我們仍認為，傳統健身房在評估替代方案時正放緩投資，以因應運動偏好改變所帶來的影響。

Our performance in Europe has also been affected by competitive dynamics, which are influencing pricing, particularly on cardio products. In addition, the third quarter revenue was affected by the timing of deliveries at the end of the quarter, which will benefit revenue growth in the fourth quarter.

我們在歐洲的表現也受到競爭態勢影響，進而影響定價，尤其是在有氧（cardio）產品上。此外，第三季營收亦受到季末交付時點影響，該因素將有利於第四季的營收成長。

Asia Pacific has seen strong growth, with Japan, Australia and China leading the way. The Latin American markets, particularly Brazil, are starting to recover as economies improve and currencies stabilize.

亞太地區呈現強勁成長，其中以日本、澳洲與中國領先。拉丁美洲市場，特別是巴西，正隨著經濟改善與貨幣趨於穩定而開始復甦。

Our new product introductions will help improve volume and margin pressures. Our new cardio products, introduced in the third and fourth quarters, should benefit year-over-year sales and earning comparisons, with technology and improved customer-solution products beginning to differentiate the Fitness segment's product portfolio in future quarters.

我們的新產品導入將有助於改善銷量與毛利率壓力。我們於第三季與第四季推出的新有氧產品，預期將有利於年對年銷售與獲利比較；隨著科技與更完善的客戶解決方案產品開始發揮差異化，健身事業部的產品組合在未來幾季將更具競爭力。

New and refreshed Life Fitness and Cybex branded product introductions will continue into 2018 and will increase growth opportunities by expanding the overall product base across all the major categories and price points.

Life Fitness 與 Cybex 品牌的新產品與改款產品導入將延續至2018年，並透過擴大在所有主要品類與各價格帶的整體產品基礎，提升成長機會。

Now I'll turn the call over to Bill for some additional comments on our financial performance.

現在我把電話會議交給 Bill，請他就我們的財務表現補充一些評論。

Thanks, Mark. For the third quarter, sales in our combined Marine segments and Fitness segment increased by 5% and 2%, respectively. From a geographic perspective, consolidated U.S. sales increased by 3%, while sales outside the U.S. on a constant currency basis increased by 6%. By region, sales on a constant currency basis increased by 4% in Europe while Rest of the World sales were up 8%.

謝謝，Mark。第三季，我們合併的海事事業群與健身事業部的銷售額分別成長5%與2%。從地理區域來看，合併美國銷售額成長3%；而美國以外地區在固定匯率基礎下成長6%。按區域劃分，在固定匯率基礎下，歐洲銷售額成長4%，世界其他地區（Rest of the World）銷售額成長8%。

Year-to-date, sales in our combined Marine segments and Fitness segment increased by 8% and 6%, respectively. From a geographic perspective, consolidated U.S. sales increased by 6%, and sales outside the U.S. on a constant currency basis increased by 11%. By region, sales increased by 8% in Europe while Rest of the World sales were up 13%, both on a constant currency basis.

年初至今，我們合併的海事事業群與健身事業部的銷售額分別成長8%與6%。從地理區域來看，合併美國銷售額成長6%；而美國以外地區在固定匯率基礎下成長11%。按區域劃分，在固定匯率基礎下，歐洲銷售額成長8%，世界其他地區銷售額成長13%。

Turning to our Marine Engine segment, third quarter sales increased by 7%. From a geographic perspective, sales in the U.S. and Europe increased, reflecting growth in outboard engines and parts and accessories. Rest of the World sales were up 16% compared to prior year on a constant currency basis, with 12% excluding acquisitions. Growth was driven primarily by increases in Asia Pacific and Canada.

接著看我們的海事引擎（Marine Engine）事業部，第三季銷售額成長7%。從地理區域來看，美國與歐洲的銷售額增加，反映舷外機（outboard engines）以及零件與配件的成長。世界其他地區在固定匯率基礎下較去年成長16%；若排除併購影響則成長12%。成長主要由亞太與加拿大的增加所帶動。

On a product category basis, the outboard engine business reported strong sales growth in the quarter. This performance reflects a favorable retail demand environment, particularly for higher horsepower engines and continued benefits from share gains in targeted saltwater, repower and commercial markets, reflecting benefits from recently launched products.

以產品類別來看，舷外機業務在本季呈現強勁的銷售成長。此表現反映有利的零售需求環境，尤其是較高馬力引擎；同時也反映我們在目標鹽水（saltwater）、換裝（repower）與商用市場持續取得市占提升的效益，並受惠於近期推出的新產品。

Third quarter sterndrive engine sales declined slightly as the demand environment continues to be affected by the shift to outboards and unfavorable global retail demand trends. As some of this market continues to transition to outboard propulsion, we believe that our expanded outboard engine portfolio, distribution channels and service capabilities are well positioned to capitalize on this opportunity.

第三季艉驅（sterndrive）引擎銷售額小幅下滑，因需求環境持續受到市場轉向舷外機，以及不利的全球零售需求趨勢影響。隨著部分市場持續轉向舷外推進（outboard propulsion），我們相信我們擴大的舷外機產品組合、通路與服務能力已具備良好定位，可把握此一機會。

Mercury's parts and accessories businesses delivered solid sales growth during the quarter, with a strong increase in international markets, reflecting the successful execution of our international growth strategy, including the recent acquisition of Lankhorst Taselar, a distribution business based in The Netherlands and Germany. New product launches, along with a growing adoption of new engine control technologies, continues to add to the growth of these businesses.

Mercury 的零件與配件業務在本季帶來穩健的銷售成長，國際市場增幅強勁，反映我們成功執行國際成長策略，包括近期收購 Lankhorst Taselar——一家總部位於荷蘭與德國的通路分銷業務。新產品上市，加上新引擎控制技術的採用日益普及，持續推動這些業務的成長。

Mercury's operating earnings increased by 5%, and operating margins were at 17.2%, which was down 30 basis points versus the prior-year quarter. The improvement in operating earnings reflected benefits from higher sales, cost efficiencies and favorable foreign exchange impacts. The slight decline in operating margins was driven by planned increases in growth-related investments in advance of new product introductions. For the 9 months, operating margins grew to 17%, which is 20 basis points higher than year-to-date 2016.

Mercury 的營業利益成長5%，營業利益率為17.2%，較去年同期下降30個基點。營業利益的改善反映較高銷售額、成本效率提升以及有利的外匯影響所帶來的效益。營業利益率的小幅下滑，主要由於在新產品導入前，依計畫增加與成長相關的投資。就前9個月而言，營業利益率提升至17%，較2016年年初至今高出20個基點。

In our Boat segment, third quarter revenues increased by 1%, with strong growth in the aluminum outboard boat business, which benefited from solid market growth and higher production levels of pontoon boats. Sales comparisons also include the effect of the large fiberglass sterndrive/inboard boat sales decline and the hurricane impacts referenced by Mark earlier in the call, which on a combined basis, affected sales comparisons by over 11%.

在我們的船艇（Boat）事業部，第三季營收成長1%，其中鋁製舷外機船艇業務強勁成長，受惠於穩健的市場成長以及浮筒船較高的生產水準。銷售比較亦包含大型玻璃纖維艉驅/內置（sterndrive/inboard）船艇銷售下滑的影響，以及 Mark 先前在電話會議中提及的颶風影響；兩者合計使銷售比較受到超過11%的影響。

In the U.S., which represented 78% of the segment, sales decreased 1%. This decrease was more than offset by solid international growth with Europe up 22% on a constant currency basis.

在美國（占該事業部78%），銷售額下降1%。然而，歐洲以固定匯率計算成長22%的穩健國際成長，已大幅抵銷了這一下降。

Global wholesale shipments for the third quarter increased 6% and are up 7% year-to-date. Changes in average selling prices decreased by 5% in the quarter and were up 1% year-to-date. These comparisons reflect the sales mix impacts of the previously mentioned planned declines in large fiberglass sterndrive/inboard boat revenues and strong sales of aluminum outboard products. Both periods also include benefits from the continued customer migration to boats with more content and higher horsepower engines, which are adding top line benefits over and above normal price increases. Our full year plan anticipates growth in average selling prices slightly above year-to-date trends.

第三季全球批發出貨量增加6%，年初至今增加7%。平均售價的變動在本季下降5%，年初至今上升1%。這些比較反映了前述計畫性下滑的大型玻璃纖維艉驅／內置引擎船（sterndrive/inboard）營收，以及鋁製舷外機產品強勁銷售所帶來的銷售組合影響。兩個期間亦包含持續的客戶轉向內容配備更多、馬力更高的船型所帶來的效益，這些效益在正常漲價之外，進一步推升營收。我們的全年計畫預期平均售價成長將略高於年初至今的趨勢。

Dealer pipeline inventories ended the quarter at 27 weeks of boats on hand, measured on a trailing 12-month retail basis, which is relatively consistent with the past 3 years. With the exception of the large fiberglass sterndrive/inboard business, which comprises a very small amount of unit volume, we believe that our overall pipeline levels are appropriate and in excellent shape given our growth expectations in the various boat categories and markets as well as dealer sentiment and outlook for the remainder of the year.

經銷商管道庫存於本季末為27週的現有船隻庫存（以過去12個月零售為基礎衡量），與過去3年大致一致。除大型玻璃纖維艉驅／內置引擎業務外（其單位銷量占比極小），我們認為在各船型類別與市場的成長預期，以及經銷商情緒與對今年剩餘期間的展望之下，我們整體管道水位是適當的，且狀況非常良好。

For 2017, we are planning for the weeks on hand of inventory to be consistent with prior year-end levels. In addition, for the full year, the growth in wholesale units is expected to be slightly below year-to-date performance with the growth in retail units expected to be slightly higher than year-to-date growth. This implies that wholesale growth rates for the year will slightly outpace retail unit growth rates.

針對2017年，我們規劃庫存週數將與前一年度期末水準一致。此外，就全年而言，批發單位的成長預期將略低於年初至今表現，而零售單位的成長預期將略高於年初至今成長。這表示全年批發成長率將略高於零售單位成長率。

This next chart provides a historical look at pipelines at the end of each quarter. A key observation from this data is that over the past 5 years, we have done an excellent job ending the third quarter, which is very close to the completion of the model year, with inventories appropriately sized and with very clean aging. We are expecting to finish this year consistent with the previous 4 years and expect to be very well positioned moving into the 2018 Boat Show and selling season.

下一張圖表提供各季季末管道庫存的歷史概況。從這些數據的一個關鍵觀察是，過去5年我們在第三季季末（非常接近車型年度完成時點）能以適當的庫存規模結束，且庫存齡期非常乾淨，表現相當出色。我們預期今年的收尾將與前4年一致，並預期在進入2018年船展與銷售旺季時，將處於非常有利的位置。

The Boat segment's third quarter operating earnings decreased by $6.7 million when compared to the prior year. The decrease in operating earnings resulted mostly from an unfavorable change in sales mix, resulting from the previously discussed factors impacting sales comparisons as well as manufacturing inefficiencies, including cost associated with the hurricane. For the 9 months, operating margins as adjusted were 3.6%, which is 90 basis points lower than year-to-date 2016.

船舶事業部第三季營業利益較去年同期減少670萬美元。營業利益下滑主要來自不利的銷售組合變化，原因包括前述影響銷售比較的因素，以及製造效率不佳（包含颶風相關成本）。就前9個月而言，調整後營業利益率為3.6%，較2016年年初至今低90個基點。

Shifting to our Fitness segment, where sales increased by 2%. Revenue gains resulted mostly from the ICG acquisition completed in 2016. Sales comparisons also reflected flat overall global market demand with growth in sales to value-oriented clubs being offset by softness in sales to traditional clubs and other vertical markets.

接著談到健身事業部，銷售額成長2%。營收成長主要來自2016年完成的ICG收購。銷售比較亦反映全球整體市場需求持平：對重視性價比的健身俱樂部銷售成長，被對傳統俱樂部及其他垂直市場銷售疲弱所抵銷。

On an as-adjusted basis, operating earnings decreased by $5.3 million, and operating margins were at 10.8%, which was 250 basis points lower than the prior-year quarter. The decline in operating earnings resulted from lower margins, reflecting more challenging competitive dynamics in certain international markets and unfavorable changes in sales mix, which more than offset benefits from acquisitions and cost-reduction efforts. For the 9 months, operating margins as adjusted were 9.6%, 240 basis points lower than last year.

以調整後基礎計算，營業利益減少530萬美元，營業利益率為10.8%，較去年同期低250個基點。營業利益下滑源於毛利率較低，反映部分國際市場更具挑戰的競爭態勢及不利的銷售組合變化，這些因素超過了併購與降本措施帶來的效益。就前9個月而言，調整後營業利益率為9.6%，較去年低240個基點。

Next, I will discuss the impact that foreign currency is having on our performance. In the third quarter, sales comparisons were positively affected by less than 1% and operating earnings comparisons were positively affected by approximately $4 million, which was slightly lower than our plan.

接下來，我將說明外幣對我們績效的影響。第三季，匯率對銷售比較的正面影響不到1%，對營業利益比較的正面影響約為400萬美元，略低於我們的計畫。

Moving to full year 2017, we are expecting a slightly favorable impact on sales and operating earnings, including favorable comparisons for the fourth quarter. These estimates for 2017 assume that foreign exchange rates remain consistent with current rates for the remainder of the year.

展望2017全年，我們預期匯率對銷售與營業利益將有小幅正面影響，其中也包括第四季的有利比較。這些2017年的估計假設外匯匯率在今年剩餘期間維持與目前水準一致。

Our year-to-date effective book tax rate as adjusted was 27.9%. This includes net tax benefits resulting from share-based compensation activity of $7.7 million, substantially all of which occurred in the first half of 2017. Excluding these benefits, our as-adjusted effective tax rate for the year-to-date period was just under 30%.

我們年初至今的調整後有效帳面稅率為27.9%。其中包含因股份基礎薪酬活動產生的淨稅務利益770萬美元，幾乎全部發生在2017年上半年。若排除這些利益，我們年初至今期間的調整後有效稅率略低於30%。

For the fourth quarter, we are planning for an effective tax rate of approximately 30%. Including the share-based compensation tax benefits recorded in the first 9 months, the full year effective tax rate is expected to be approximately 28% to 28.5%, which is reflected in our guidance. Our full year EPS guidance does not include any additional excess tax benefits for the remainder of the year.

第四季，我們規劃有效稅率約為30%。若包含前9個月已認列的股份基礎薪酬稅務利益，全年有效稅率預期約為28%至28.5%，並已反映在我們的指引中。我們的全年每股盈餘（EPS）指引不包含今年剩餘期間任何額外的超額稅務利益。

I would also like to note that the improvement in the full year effective tax rate does not result in EPS benefits incremental to our previous guidance. The drop in rate is a function of the lower pretax earnings amount, while items like tax credits and excess tax benefits remained relatively constant. Finally, we are projecting our cash tax rate to be in the low to mid-teens percent range.

我也想指出，全年有效稅率的改善並不會帶來相較於先前指引的額外EPS利益。稅率下降是因稅前盈餘金額較低所致，而稅額抵減與超額稅務利益等項目則相對維持穩定。最後，我們預估現金稅率將落在百分比低至中十位數（low to mid-teens）的區間。

Turning to a review of our cash flow statement. Cash generated by continuing operating activities was $255 million, which is $38 million lower than the prior year as benefits from slightly higher earnings were more than offset by higher seasonal working capital usage. Net increases in our primary working capital accounts totaled $101 million.

接著回顧現金流量表。持續營運活動產生的現金為2.55億美元，較去年少3,800萬美元；略高的獲利帶來的效益，被較高的季節性營運資金使用量所抵銷。我們主要營運資金科目的淨增加合計為1.01億美元。

The biggest changes included an increase in inventory of $91 million, an increase in accounts and notes receivable of $51 million. The impacts of these changes were partially offset by an increase in accrued expenses of $29 million and an increase in accounts payable of $12 million.

最大的變動包括：存貨增加9,100萬美元，應收帳款及應收票據增加5,100萬美元。這些變動的影響，部分被應計費用增加2,900萬美元以及應付帳款增加1,200萬美元所抵銷。

The increased working capital used by the business of [$54 million] versus the prior year primarily reflects higher inventory and accounts receivable balances against the prior year, partially offset by increases in accounts payable and accrued expenses.

相較去年，企業使用的營運資金增加（[$54 million]）主要反映存貨與應收帳款餘額較去年提高，部分被應付帳款與應計費用增加所抵銷。

Year-to-date, 2017 free cash flow was $190 million. Capital spending was $153 million for the first 9 months, which included investments in new products as well as capacity expansions in our Marine and Fitness segments. Capital spending and related payments in 2017 are more heavily weighted to the first 9 months as a result of the timing of certain capacity and product-related initiatives.

年初至今，2017年自由現金流為1.90億美元。前9個月資本支出為1.53億美元，其中包含新產品投資，以及我們海事與健身事業部的產能擴充。由於部分產能與產品相關計畫的時程安排，2017年的資本支出及相關付款更集中於前9個月。

Let me conclude with comments on certain items that will impact our P&L and cash flow for 2017. I will focus some -- on some of the more notable items. Our plan reflects diluted shares outstanding of approximately $90.2 million for the full year and approximately $89 million for the fourth quarter of 2017, which reflects higher-than-expected share repurchase activity in the third quarter. In addition, we now anticipate a slightly lower effective book tax rate, which I discussed earlier.

最後，我以幾項將影響我們2017年損益表與現金流的事項作結。我將聚焦於其中較為重要的項目。我們的計畫假設全年稀釋後流通在外股數約為9,020萬股，2017年第四季約為8,900萬股，反映第三季高於預期的庫藏股回購活動。此外，我們目前也預期有效帳面稅率將略低一些，我先前已說明。

Our cash flow assumptions continue to project free cash flow in 2017 to be greater than $250 million. Also listed here are some of the key cash flow metrics, which are largely unchanged from the July call. We continue to execute against our share repurchase program with repurchases of $60 million in the third quarter and $120 million year-to-date. While our plan does not contemplate any additional repurchases in 2017, we continue to view share repurchases as an attractive use of capital and will balance additional repurchases against other investment opportunities.

我們對現金流的假設仍持續預估，2017 年自由現金流將高於 2.5 億美元。此處亦列出若干關鍵現金流指標，與 7 月電話會議相比大致未變。我們持續執行股票回購計畫，第三季回購 6,000 萬美元，年初至今回購 1.2 億美元。雖然我們的計畫並未考量 2017 年進一步回購，但我們仍認為股票回購是具吸引力的資本運用方式，並將在其他投資機會之間權衡是否追加回購。

We also increased our quarterly dividend 15% to $0.19 a share earlier this month. This action is consistent with our capital strategy objective of increasing dividends as earnings and cash flow improve and reflects our confidence in the ongoing performance of our business.

本月稍早我們也將季度股利提高 15%，至每股 0.19 美元。此舉符合我們資本策略的目標：隨著獲利與現金流改善而提高股利，並反映我們對業務持續表現的信心。

I will now turn the call back to Mark to continue our outlook comments.

接下來我把電話會議交回給 Mark，繼續說明我們的展望評論。

Thanks, Bill. Starting with revenue, our consolidated plan reflects growth rates in 2017 of approximately 7% for the year, which is slightly lower growth rate in the fourth quarter. Our Marine Engine segment continues to perform as anticipated, and we expect our collective Marine businesses to continue to generate solid top line growth over the remainder of the year. We also plan for our Fitness segment to report fourth quarter sales growth, consistent with the third quarter growth.

謝謝，Bill。先從營收談起，我們的合併計畫反映 2017 年全年約 7% 的成長率，而第四季的成長率略低。我們的船用引擎（Marine Engine）部門持續如預期表現，我們預期旗下整體船舶相關業務在今年剩餘期間仍將帶來穩健的營收成長。我們也規劃健身（Fitness）部門第四季銷售將成長，與第三季的成長一致。

Gross margin percentage will be down for the year, but not to the same degree as our year-to-date comparisons. Operating margins are anticipated to decrease modestly with operating leverage in the mid- to high-single-digit percentage range.

全年毛利率將下滑，但下滑幅度不會像年初至今的比較那麼大。預期營業利益率將小幅下降，營運槓桿落在中至高個位數百分比區間。

We are lowering our guidance for the year to $3.85 to $3.87. This adjustment reflects our third quarter results and our view that certain market headwinds faced in the third quarter in our Fitness and large fiberglass sterndrive/inboard boat businesses will continue to impact the fourth quarter. Despite these headwinds, 2017 is expected to be another year of strong revenue and earnings performance, along with excellent cash flow generation.

我們將全年財測下修至 3.85 至 3.87 美元。此調整反映我們第三季的結果，以及我們認為第三季在健身業務與大型玻璃纖維艉驅／內置引擎（sterndrive/inboard）船艇業務所面臨的部分市場逆風，將持續影響第四季。儘管有這些逆風，預期 2017 年仍將是營收與獲利表現強勁的一年，並伴隨優異的現金流創造。

Looking to 2018, we anticipate the market challenges facing the Fitness segment and large fiberglass sterndrive/inboard boats will continue to affect these businesses. Consequently, we're adjusting our 2018 full year expectations of diluted EPS as adjusted to $4.20 to $4.40, a decrease from the EPS target communicated as part of the 2016 to 2018 3-year plan.

展望 2018 年，我們預期健身部門與大型玻璃纖維艉驅／內置引擎船艇所面臨的市場挑戰將持續影響這些業務。因此，我們將 2018 年全年調整後稀釋每股盈餘（diluted EPS as adjusted）預期調整為 4.20 至 4.40 美元，較我們在 2016 至 2018 三年計畫中所傳達的 EPS 目標下調。

This revised target represents a mid- to high-teens pretax earnings growth and reflects the continuation of our share repurchase activity, consistent with our plan, but does not reflect any additional M&A activity. We have additional commentary -- we will have additional commentary on '18 at next month's Investor Day and on our January earnings call.

此修訂目標代表稅前盈餘中至高十位數（mid- to high-teens）的成長，並反映我們依計畫持續進行股票回購，但不包含任何額外的併購（M&A）活動。我們還會有進一步說明——我們將在下個月的投資人日以及 1 月的財報電話會議上，提供更多關於 2018 年的評論。

We're very disappointed that we're below our initial targeted range and are developing and executing against plans to ensure that we meet or exceed these adjusted expectations and to continue to deliver strong shareholder returns.

我們對於低於最初目標區間感到非常失望，並正制定並執行相關計畫，以確保達成或超越這些調整後的預期，同時持續為股東帶來強勁回報。

Turning to our segments, the 2017 plan reflects continued revenue and operating earnings growth in our Marine Engine segment. Specifically, we're planning for revenue growth for the year to be in the 6% to 7% range. Our engine segment is expected to continue to deliver sales growth that exceeds the market as we continue to invest in new products and upgrade and expand our manufacturing and distribution capabilities to drive future growth.

談到各事業部，2017 年計畫反映船用引擎部門的營收與營業利益將持續成長。具體而言，我們規劃全年營收成長落在 6% 至 7% 區間。隨著我們持續投資新產品，並升級與擴充製造及通路能力以帶動未來成長，預期引擎部門將持續交出高於市場的銷售成長。

We continue to anticipate operating margin improvements for this business that outpace our initial long-term planning estimates. Our continued emphasis on new product development and improving cost efficiencies, along with our strong parts and accessory businesses, will enable us to drive incremental operating margin expansion.

我們仍預期該業務的營業利益率改善將超越我們最初的長期規劃估計。我們持續著重於新產品開發與提升成本效率，加上強勁的零件與配件業務，將使我們得以推動額外的營業利益率擴張。

Moving to the Boat segment, we're targeting an annual revenue growth for 2017 to be 7% to 8%, which reflects strong fourth quarter growth in our fiberglass outboard and the aluminum outboard boat businesses, along with the continued decline in our large fiberglass sterndrive/inboard boat category. We're now anticipating that the operating margins will decline for the year, which reflects the year-to-date performance and modest year-over-year improvement in the fourth quarter.

接著看船艇（Boat）部門，我們目標 2017 年全年營收成長為 7% 至 8%，反映第四季玻璃纖維舷外機（outboard）與鋁製舷外機船艇業務的強勁成長，以及大型玻璃纖維艉驅／內置引擎船艇類別的持續下滑。我們目前預期該部門全年營業利益率將下滑，反映年初至今的表現，以及第四季相較去年同期的小幅改善。

Our performance of the large fiberglass sterndrive/inboard boat business has impeded our ability to meet our operating margin goals for the segment. In the short term, we do not expect the demand environment for large fiberglass sterndrive/inboard product to materially improve, partially due to the hurricane impacts. Consequently, headwinds related to the weak retail and associated large boat pipeline reductions will likely continue into 2018.

大型玻璃纖維艉驅／內置引擎船艇業務的表現，阻礙了我們達成該部門營業利益率目標的能力。短期內，我們不預期大型玻璃纖維艉驅／內置引擎產品的需求環境會有實質改善，部分原因是颶風的影響。因此，與疲弱零售以及相關大型船艇通路庫存（pipeline）縮減相關的逆風，可能會延續到 2018 年。

However, we do not anticipate the performance of this improvement -- this business will improve as warranty -- excuse me, however, we do anticipate the performance of this business will improve as warranty adjustments recorded in the first half of 2017 are not repeated, manufacturing efficiencies improve and benefits from cost-reduction efforts are realized. And as a reminder, the Boat segment earnings comparison in '18 will also benefit from the previously announced decision to shut down our Brazilian manufacturing operations.

不過，我們不預期這項改善的表現——該業務將改善，因為 2017 年上半年認列的保固調整不會重複發生，製造效率將提升，且成本削減措施的效益將逐步實現。另外提醒一下，2018 年船艇部門的獲利比較也將受惠於先前宣布關閉巴西製造營運的決定。

In our Fitness segment, we're projecting revenue growth to be in the 5% to 6% range for the year with fourth quarter performance in line with third quarter results, reflecting benefits from new product along with strong international growth. Sales of Cybex products in the fourth quarter will be lower due to weak demand of certain traditional products and the timing of the new product launches. Operating margins for the year will be down, with year-over-year declines in the fourth quarter slightly improved versus the year-to-date.

在健身部門方面，我們預估全年營收成長將落在 5% 至 6% 區間，第四季表現與第三季結果一致，反映新產品帶來的效益以及強勁的國際成長。由於部分傳統產品需求疲弱以及新產品上市時點的影響，第四季 Cybex 產品銷售將較低。全年營業利益率將下滑，第四季相較去年同期的降幅將較年初至今略有改善。

For 2017, margins have meaningfully trailed our expectations due to several factors, including weaker-than-expected demand, shifts in sales mix and a more challenging competitive condition in certain international markets. As we believe that these factors will persist into 2018, it remains prudent to adjust our short-term growth expectations for this business. However, our long-term outlook anticipates market conditions improving in certain segments or regions and the business benefiting from new products and technologies, both of which would provide tailwinds to the segment's performance.

2017 年的利益率明顯落後於我們的預期，原因包括需求弱於預期、銷售組合變化，以及部分國際市場更具挑戰的競爭環境。由於我們認為這些因素將延續至 2018 年，因此調整該業務的短期成長預期仍屬審慎之舉。然而，我們的長期展望預期某些細分市場或地區的市場狀況將改善，且業務將受惠於新產品與新技術，兩者都將為該部門表現提供順風。

As a reminder, the Fitness segment's performance in the fourth quarter and 2018 will benefit from certain cost actions taken in 2017, including the headcount reductions announced in April, which result in an annual savings of $7 million. Additional cost benefits will also be realized, including benefits from our manufacturing capacity initiatives as additional new products are introduced and the ongoing savings from our Lean Six Sigma projects throughout that organization.

提醒一下，健身部門在第四季與 2018 年的表現將受惠於 2017 年採取的若干成本措施，包括 4 月宣布的人力精簡，帶來每年 700 萬美元的節省。也將實現其他成本效益，包括隨著更多新產品導入而帶來的製造產能計畫效益，以及該組織內持續推動精實六標準差（Lean Six Sigma）專案所帶來的持續節省。

We continue to believe in the long-term growth prospects for this business, particularly as clubs embrace the opportunities enabled by the evolution of technology. Our long-term objective is to stabilize and then grow our margins, and we believe we have a strategy that will successfully deliver this margin expansion while capitalizing on market opportunities.

我們仍相信該業務具備長期成長前景，特別是在健身俱樂部擁抱科技演進所帶來的機會之際。我們的長期目標是先穩定、再提升利益率；我們相信我們具備可成功實現此利益率擴張、同時把握市場機會的策略。

I would like to close with a reminder of a few of the comments I made in the opening. With a good portion of the Marine season behind us, we believe that both domestic and international Marine markets are performing in line with our expectations and that our product leadership strategy will continue to advantage us in the marketplace.

最後，我想提醒各位我在開場時提到的幾點。隨著船舶旺季大部分已過，我們認為國內與國際船舶市場的表現符合我們的預期，而我們的產品領導策略將持續讓我們在市場上占優。

Presented with new challenges, the Fitness business will adjust and streamline its strategy in order to overcome such challenges, capitalize on the growth opportunities and achieve its long-term profit goals. I'm confident that the management team and our 14,000 dedicated Brunswick colleagues are committed to delivering and executing our growth strategy in 2017 and beyond. We expect to finish 2017 with record earnings and positive momentum, allowing us to be well positioned for 2018 and beyond.

面對新的挑戰，健身事業將調整並精簡其策略，以克服這些挑戰、把握成長機會並達成其長期獲利目標。我有信心管理團隊以及我們14,000位敬業的Brunswick同仁，將致力於在2017年及未來持續推動並落實我們的成長策略。我們預期2017年將以創紀錄的獲利與正向動能作結，使我們在2018年及往後處於有利位置。

In closing, I hope you will be able to join our Investor Day on Tuesday, November 7, in New York, where we will communicate the next 3-year plan, covering 2018 through 2020, discuss our exciting strategic initiatives and offer the investment community the opportunity to learn more and hear more from our business leaders on how they plan to deliver the increased shareholder value through continuing operating excellence.

最後，我希望您能於11月7日（週二）在紐約參加我們的投資人日，屆時我們將溝通下一個三年計畫（涵蓋2018年至2020年）、討論令人振奮的策略性倡議，並讓投資社群有機會進一步了解，並聽取我們各事業領導團隊如何透過持續的卓越營運，為股東創造更高價值。

And with that, we'll be happy to take your questions.

接下來，我們很樂意回答各位的提問。

(Operator Instructions) And our first question comes from Tim Conder from Wells Fargo.

(接線員指示) 我們的第一個問題來自Wells Fargo的Tim Conder。

Mark or Bill, whoever wants to take this, is there a way that you can parse the impact of the manufacturing disruptions in your boat business here in Q3, Q4 versus the -- what's been ongoing large boat sluggishness? And any impact from that from therefore, we would anticipate that, that should not repeat itself looking into next year? But if you could break that down a little bit. And then, are you seeing any slowing in any of your brands outside of the large boats, I guess that would be a question. It doesn't appear that way but just wanted to ask that directly.

Mark或Bill，誰願意回答都可以：你們能否拆解一下第三季、第四季船艇業務製造中斷的影響，相較於——一直以來大型船艇需求疲弱的影響，各自占比如何？以及因此帶來的任何影響，我們是否可以預期明年不會再重演？如果可以的話，請再多分解說明一些。另外，你們是否看到除大型船艇以外的任何品牌出現放緩？我想這也是個問題。看起來似乎沒有，但我想直接確認一下。

Tim, I'll take the questions. The first -- I'll take the last one first. I would say, we're still seeing very strong activity in all of our outboard-based businesses, led by Whaler, Lund and others. Outside of the boat business -- outside of the large fiberglass boat business, we're pretty happy with where the market trends are at the present time. Just trying to size for you the impact of the large boats versus hurricanes, if you -- the metric we gave in our prepared remarks on the Boat segment comparisons for the third quarter being affected by 11%, about 1/3 of that impact was due to the hurricanes and the other 2/3 was the impact of big boat reductions.

Tim，我來回答這些問題。第一個——我先回答最後一個。我會說，我們在所有以舷外機為主的業務仍看到非常強勁的活動，主要由Whaler、Lund等品牌帶動。在船艇業務之外——在大型玻璃纖維船艇業務之外，我們對目前的市場趨勢相當滿意。至於你想了解大型船艇與颶風的影響規模——我們在事先準備的發言中提到，第三季船艇事業部的比較數據受到11%的影響，其中約1/3來自颶風，另外2/3則是大型船艇減量的影響。

Okay, okay.

好的，好的。

Does that help size the -- and I would say, Tim, just to close the loop on some of the impact of the hurricanes, as we sit around and think about our performance against where expectations were for the quarter, the hurricane was about responsible for a little under half of our shortfall versus expectations and kind of Fitness volume was the other portion of the shortfall.

這樣是否有助於衡量——另外我也想補充一下，Tim，關於颶風的一些影響：當我們回頭思考本季表現相對於原先預期的差距時，颶風大約造成了我們低於預期的缺口中不到一半的部分，而健身事業的銷量則是缺口的另一部分。

Okay. So then I guess, here -- on a look forward basis, we would say that as you get that replacement business and so forth and you get back to maybe retail that was postponed in the August, September period, we should see both normalized and outside of the large boats really -- and the hurricane impact here, there's really nothing else going on with boats. So on a continuing basis, it's just the large boat concerns. Is that a fair characterization?

好的。那麼我想，往前看——當你們獲得替換需求等回補，並且把8月、9月期間延後的零售需求拉回來後，我們應該會看到恢復正常；而在大型船艇以外——以及颶風影響之外，船艇業務其實沒有其他事情在發生。所以持續性的問題就只剩大型船艇的疑慮。這樣的描述公平嗎？

Yes, that's a fair characterization, Tim.

是的，Tim，這樣的描述很公平。

Okay. So then, I guess that brings us to Fitness here. Obviously, then, what you were seeing in the core club market and competitive situation, you needed further restructuring charges, which you took here even after integrating Cybex and everything was done there. So maybe walk us through that. And then how are you looking to pivot here from what you're seeing in what could be a secular shift within that core club market?

好的。那我想這就帶到健身事業了。顯然，基礎健身房（core club）市場與競爭態勢的情況，使你們需要進一步的重整費用；即使在整合Cybex且相關工作都完成之後，你們這一季仍提列了這些費用。所以也許請帶我們走一遍這部分。另外，針對你們在基礎健身房市場可能出現結構性（secular）轉變所觀察到的情況，你們打算如何調整方向？

Well, I think the -- let me kind of go from the latter part of the question forward. As we've said, we more or less see a flat global demand. Europe, in particular, has been down. The flip side is Asia has been up nicely, but when you really get into the things impacting the business, I mean, fundamentally, the gross margins on the business are pretty good but without the volume that we anticipated getting, that's largely leading to the shortfall Bill just talked about. So what kinds of things are really going on there? One, we've been trying to reallocate resources and deal with the cost elements of this, and we've been doing things around restructuring and the operating excellence. But the other part of it has really been around the things on new products and technology, and we're really excited about -- and we've been getting great feedback about the new line of cardio products we're in the midst of bringing out and then the new products that'll happen in fourth quarter and into the first quarter under the Cybex brand. So I think it's a combination of making sure our cost and things are really in line, but the other part is really making sure that the new products we have are hitting the mark and the technologies we're capable of bringing out are going to help traditional clubs and others, stimulate them to get into some of the replacements or other things that they're going to see products that have value relative to doing some refreshers and upgrades.

我想——我先從問題後半段往前回答。如同我們所說，我們大致看到全球需求持平。歐洲特別是下滑。相對地，亞洲成長得不錯；但當你深入看影響業務的因素時，基本上這項業務的毛利率相當不錯，只是沒有達到我們原先預期的銷量，這在很大程度上導致Bill剛才提到的落差。那麼到底發生了哪些事？第一，我們一直在嘗試重新配置資源並處理成本要素，並透過重整與卓越營運等措施來推進。但另一部分其實在於新產品與技術；我們對此非常興奮——而且我們也收到對我們正在推出的新一代有氧產品線的很棒回饋，此外在第四季以及第一季，Cybex品牌也將推出新產品。因此我認為這是兩方面的結合：一方面確保成本等項目真正到位；另一方面確保我們的新產品切中需求，並且我們有能力推出的技術，能協助傳統健身房等客戶在替換需求或其他需求上被激發，讓他們看到這些產品在更新與升級方面的價值。

Tim, on your restructuring question just to follow up. The majority of the charges that we took related to our announcement that we were going to discontinue and get out of the InMovement business, which made up quite a bit of the charge. And then we've got -- if you remember, we're in the process now of transitioning manufacturing from the Medway, Massachusetts facility, that's completing here in the third quarter and there are some charges associated with that. So we've kind of got some residual and ongoing transition costs associated with what we're doing with the manufacturing footprint. Plus, we've got some charges that we took in connection with our decision to get out of InMovement.

Tim，關於你提到的重整問題，我再補充一下。我們提列的費用中，大部分與我們宣布將停止並退出InMovement業務有關，這占了相當大一部分費用。另外——如果你還記得——我們目前正在把製造從麻薩諸塞州Medway廠區轉移，這項工作在第三季完成，並有一些相關費用。因此，與我們製造據點（manufacturing footprint）調整相關，仍有一些殘餘與持續的轉移成本。再加上我們因決定退出InMovement而提列的一些費用。

Okay. And last question, related to that then. If it's a permanent shift potentially going on in what the core clubs are apparently seeing, how can you take your current product portfolio or are there new things in development that can help you with hospitality, government, maybe the rehab hospital type of market? And then if that does occur, do you see getting back to the original growth that you participated? Or have we adjusted now down to a new normal that you think going forward here in the broad Fitness business?

好的。那最後一個問題也與此相關。如果基礎健身房所面臨的情況可能是一種永久性的轉變，你們如何運用目前的產品組合，或是否有正在開發的新產品，能協助你們切入飯店旅宿、政府機關、或復健醫院等市場？如果真的發生這種轉變，你們是否能回到原先參與的那種成長？或者我們現在是否已經下修到一個新的常態，你們認為未來整體健身事業就是如此？

I don't think we're adjusting, Tim, to a new normal. I think if you look from a much longer term, there's always been a bit of dips and things relative to changes within that -- within the market. And the reality I think is that as we can get new products out there, people will adapt to this changing environment. And if you take the hundreds of thousands of pieces of equipment out there and the change, we're just positioning ourselves that we've got a product and a technology solution that we're going to get more than our fair share of that market. And with the new products and the resources we're allocating on the technology side, we're really comfortable. The other thing I'd point out is, what we've said is that the majority and the bulk of the flatness is really dealing with the traditional club. In general, things like multi-family housing, hospitality, education, those markets are just fine.

Tim，我不認為我們是在調整到一個新的常態。我認為如果你用更長期的角度來看，市場內部的變化一直都會帶來一些起伏。而我認為現實是，當我們能把新產品推出到市場上，人們會去適應這個正在改變的環境。如果你看看市場上數十萬台設備以及其汰換需求，我們只是把自己定位好，確保我們有產品與技術解決方案，能在這個市場中取得超過我們應得份額的機會。隨著新產品以及我們在技術端投入的資源，我們感到非常有信心。另外我也想指出，我們所說的持平主要、也大多是與傳統健身房有關。整體而言，像是多戶住宅、飯店旅宿、教育等市場都表現良好。

Our next question comes from Scott Stember from CL King.

我們的下一個問題來自 CL King 的 Scott Stember。

Just to -- further parsing out the impact from the hurricane. I just want to make sure I understood this. You were saying that at least versus where your expectations that half of the miss or half of the weakness here compared to what we were looking for was related to, I guess, you said that 1/3 of the 11% for the hurricanes and the other 2/3 just the ongoing piece of that you're talking about for the boat business, just cutting costs or just cutting production.

我想再——進一步拆解颶風帶來的影響。我只是想確認我理解得沒錯。你是說，至少相對於你們原先的預期，這次未達標或疲弱的部分，大約有一半是與颶風相關；我想你提到的是，那個 11% 裡面有 1/3 是颶風造成的，另外 2/3 則是你談到的船艇業務本身持續性的因素，例如削減成本或削減產量。

Correct. So the hurricane impact was about -- it's a little under half of the gap between expectations and where our reported EPS was. So call it, if it's a $0.09 gap, it's in the $0.04 range, just to, I guess, be direct on the question. And then you're correct with the revenue that about 2/3 of that 11%, the 11% impact that I cited on both segment sales, about 1/3 of that was related to the hurricane.

正確。所以颶風的影響大約——略低於「預期」與我們實際公布 EPS 之間落差的一半。所以如果落差是 0.09 美元，那大概在 0.04 美元左右，我想直接回答你的問題。至於營收方面你也說得對：我提到兩個事業部銷售都受到 11% 的影響，其中約 2/3 來自其他因素，而約 1/3 與颶風相關。

And then just further breaking that out, you said that, I guess, 25% of your sales were impacted. I guess, so this is assuming that this is really Hurricane Irma in Florida more than anything else, correct?

那再進一步拆開來看，你說大概有 25% 的銷售受到影響。所以我想，這主要是假設佛羅里達的艾瑪颶風（Hurricane Irma）影響最大，對嗎？

No. I'd say you've got to separate this, Scott, into 2 pieces. First is our manufacturing operations and what we were able to produce and ship were affected by the hurricane. The retail comment has more to do with what part of the retail market over the last 4 months of the year is going to be affected by the hurricane. So that 25% of the remaining 15% of the year is kind of the -- as you start to think about what the impact on retail might be over the last 4 months of the year, that's the right way to think about it. But they're 2 very separate sort of a thing. Part of it was our inability to produce product because we had people who had to evacuate, come back and then it took us a day or 2 to get operations up to full strength. So that's really what we're talking about here.

不是。Scott，我會說你必須把這件事分成兩個部分。第一是我們的製造營運，以及我們能夠生產與出貨的能力，受到颶風影響。零售端的評論，更多是關於今年剩下 4 個月中，零售市場的哪些部分會受到颶風影響。所以你提到的「今年剩下 15% 的時間中有 25% 會受影響」——當你開始思考今年最後 4 個月零售端可能受到的影響時，這樣理解才是正確的方式。但這兩者是非常不同的兩件事。其中一部分是我們因為有人必須撤離、回來後又花了一兩天才讓營運恢復到滿載，因此無法生產產品。所以我們在這裡談的主要就是這個。

And then did you mention when you will be all caught up with production, where you need to be?

那你們有提到何時能把產能追趕回到需要的水準嗎？

We didn't say when. But the comment is that essentially, we were running and had expectations for the quarter and our production schedule. So clearly, the catchup's going to carry from fourth quarter into -- a little bit into '18, Scott.

我們沒有說具體時間。但我們的意思是：基本上，我們原本是依照本季的預期與生產排程在運作。所以很明顯，追趕進度會從第四季延續到——2018 年還會延續一小段時間，Scott。

Although I'd just add on to that, that the place where -- our Boston Whaler fiberglass outboard businesses were probably the most affected. They're in a position where they can get largely caught up by the end of the year. The other 2 operations were tied to the sport yacht business. We're probably not going to get -- that's not anything we're going to get caught up with. That flows into '18.

另外我補充一下：受影響最嚴重的地方，可能是我們 Boston Whaler 的玻璃纖維舷外機船艇業務。他們大致上可以在年底前把進度追上。另外兩個營運則與運動遊艇（sport yacht）業務相關。我們大概不會——那部分不太可能追得回來。那會延續到 2018 年。

Got it. And obviously, with your retail sales in the quarter picking back up, I guess part of that is reflective of the supplier constraints that you had in the pontoon business clearing up? Is it fair to assume in the fourth quarter that, that should be 100% taken cared of?

了解。而且很明顯，你們本季零售銷售回升，我想其中一部分反映了你們在浮筒船（pontoon）業務上遇到的供應商限制已經緩解？是否可以合理假設在第四季這些問題會 100% 解決？

Yes. As we said in our comments, Scott, the only place we think we're probably down a little in share has been in the pontoon area. That's behind us. So essentially, we'll continue with the growth -- our growth rates exceeding the market on the other areas of the business.

是的。如同我們在評論中所說，Scott，我們認為市占可能略有下滑的唯一地方是在浮筒船領域。那已經過去了。所以基本上，在其他業務領域，我們會持續維持——我們的成長率高於市場的成長。

Our next question comes from David MacGregor from Longbow Research.

我們的下一個問題來自 Longbow Research 的 David MacGregor。

This is Brandon Rolle on for David MacGregor. First question I had was just on the retail sales growth, very strong. We all knew Florida was going to be impacted by the hurricanes. But could you talk about some of the other regions and the growth rates you saw there, like in the Northeast, and maybe some of the coastal markets?

我是 Brandon Rolle，代替 David MacGregor 提問。我第一個問題是關於零售銷售成長，非常強勁。我們都知道佛羅里達會受到颶風影響。但你能否談談其他地區的情況與你們看到的成長率，例如東北部，以及一些沿海市場？

The -- my comment would be that fundamentally, the rest of the -- this -- I know it's a broad statement to hear, but the rest of the market really performed and behaved pretty much as we expected. I'm going to give you a little caveat. From the start of this year, we've talked about SSI lagging. And we've got particular strength in the upper Midwest. And I would tell you there's still probably a lag in the reporting in the upper Midwest that we believe we're doing better than what's been reported to date. But the rest of the regions were all pretty much in line with how we've laid out the year and how we've talked on prior calls. The comments, specifically, are more around Texas, Louisiana and Florida, particularly as we talk about the hurricane side.

——我的看法是，從根本上來說，其餘市場——我知道這樣講很概括，但其餘市場的表現與走勢基本上都符合我們的預期。我補充一點但書。從今年年初開始，我們就談到 SSI 的數據有落後。而我們在上中西部（upper Midwest）特別強勁。我會說，上中西部的回報數據可能仍有落後，我們相信我們的表現比目前已回報的數據更好。但其他地區大致都符合我們對今年的規劃，以及我們在先前電話會議中的說法。特別要說的部分，更多是圍繞德州、路易斯安那州與佛羅里達州，尤其是在談颶風影響時。

Okay. And also just for -- on the engine business, you had talked about investing more for new product introductions. I know you may not want to touch on this, but would you be -- would those product introductions maybe include a refresh, maybe in the 400 horsepower, where Yamaha is coming out with a new engine as well?

好的。另外關於引擎業務，你提到會為新產品導入投入更多。我知道你可能不想談這個，但你們的產品導入是否可能包含一次更新，例如 400 匹馬力級距？因為 Yamaha 也將推出新引擎。

Well, we'll talk more about the product plans when we're together at the '18 through '20. But it's no secret, we're investing significantly in a product program. And we get -- Bill and I get really excited about our opportunity there. But no, I can't really talk about it yet.

嗯，我們會在一起討論 2018 到 2020 年規劃時，再多談產品計畫。但這不是秘密：我們正在對一個產品計畫進行大幅投資。而且我和 Bill 對那裡的機會感到非常興奮。但不行，我現在還不能談太多。

We want to talk about it, but we can't talk about it.

我們想談，但我們不能談。

Our next question comes from James Hardiman from Wedbush Securities.

我們的下一個問題來自 Wedbush Securities 的 James Hardiman。

So I don't want to beat a dead horse with the hurricane, but I think you did a great job quantifying the impact for the third quarter. Certainly, it seems like the fourth quarter result is also coming down versus the way you previously thought about it. Is there a hurricane impact there? Or is that all Fitness and, I guess, other boat issues? And then I guess, as we look to 2018 -- sort of similar question, I'm assuming there's no hurricane impact in 2018. But as we think about the new $4.20 to $4.40 versus what you previously had, maybe talk a little bit about the segments. I'm assuming engines are still as good or better than you'd previously assumed. Clearly, there's some Fitness coming down, is the boat outlook coming down as a result of all that?

我不想一直重複颶風這個話題，但我認為你們對第三季影響的量化做得很清楚。當然，看起來第四季的結果也比你們先前的想法有所下修。那裡面有颶風的影響嗎？還是那全部都是 Fitness（健身）以及我想其他船艇方面的問題？另外，當我們看 2018 年——類似的問題，我假設 2018 年沒有颶風影響。但就新的每股盈餘 4.20 到 4.40 美元（相較你們先前的預期），能否稍微談談各事業部的情況？我假設引擎業務仍然和你們先前假設的一樣好或更好。很明顯 Fitness 有所下修，那船艇展望是否也因此下修？

Yes, I would say, James, to talk to some of this stuff but the -- on the boat -- on the 2018 sort of preliminary view, that -- the biggest contributor to kind of the reset there is our view of what revenue growth and margins are going to be for the Fitness business into 2018. And we're also a little bit less -- there's a little bit of an effect there of our view of the big boat business continuing to, I'd say, stabilize and operate at levels that we're seeing here in 2018 -- in '17. But with a view that we're probably going to be shipping at wholesale below retail for some period of time into '18 until we see some sort of change in what the market's doing. And that's one of those, James, where if the market starts behaving a little bit more favorably, perhaps we might do a little bit better. But our view today is that that's the market that's going to continue to be a little bit more challenged. In that sort of an environment, we're probably going to be operating at wholesale below retail. And when you think about your fourth quarter comment, it is probably an equal amount of the fourth -- third quarter shortfall in Fitness probably equal to what we're going to see in Q4. And the other gap in the boat business is really a little bit more of a conservative view and prudent view on large sport yachts and yachts, where we're not seeing production come back to the levels that we had initially planned on the July call. So part of that is driven by our view of hurricanes and just the fact that we have not seen things come back.

是的，James，我會說，談到其中一些內容，但——就船艇業務而言——在2018年的初步觀點上，那——造成那次重設的最大貢獻因素，是我們對健身（Fitness）業務在2018年的營收成長與利潤率將會如何的看法。另外，我們也稍微——也有一點影響來自於我們對大型船艇業務持續、我會說、趨於穩定並在我們於2018年——在'17年所看到的水準上運作的看法。但我們的看法是，在'18年一段時間內，在看到市場行為出現某種變化之前，我們可能會以批發低於零售的方式出貨。而這也是那種情況之一，James，如果市場開始表現得更有利一些，也許我們可能會做得稍微好一點。但我們今天的看法是，那個市場仍將持續面臨較多挑戰。在那樣的環境下，我們可能會以批發低於零售的方式運作。而當你想到你對第四季的評論時，健身業務第三季的不足，可能大致等同於我們在第四季將看到的情況。而船艇業務的其他差距，主要是對大型運動遊艇與遊艇採取較保守且審慎的看法，因為我們沒有看到產量回到我們在7月電話會議上最初規劃的水準。因此其中一部分是由我們對颶風的看法所驅動，以及事實上我們尚未看到情況回復。

And James, I'd add one other comment that we said, but I want to make sure that it's clear to everyone is, the $4.55 to $4.95 was our -- a strategic view of '15 into 2018, and that is the strategic view. When we -- I want to remind you when we talk about the next year's number, we never talk about any acquisitions that we have not yet completed. So when we talk about $4.20 to $4.40, that's nothing beyond acquisitions we've already done. The $4.55, $4.95, clearly, would have some -- because it's a strategic number, it would have some acquisitions in it. I want to point that out as well.

另外，James，我再補充一點我們提過的評論，但我想確保對所有人都很清楚：4.55到4.95美元是我們——從'15到2018年的策略性觀點，而那就是策略性觀點。當我們——我想提醒你，當我們談到下一年的數字時，我們從不把任何尚未完成的併購納入討論。所以當我們談到4.20到4.40美元時，那不包含任何超出我們已經完成的併購。而4.55、4.95美元，顯然——因為它是策略性數字——會包含一些併購在內。我也想把這點指出來。

But just so I'm clear, if we were to include the acquisitions, are we still at $4.55 to $4.95? Or is it -- I'm assuming it's still something meaningfully less than that?

但為了讓我確認清楚，如果我們把併購納入，是否仍是4.55到4.95美元？還是——我假設它仍會明顯低於那個水準？

No. I mean, if we're just executing against normal bolt-on activity, James, it would incrementally improve the number, but it wouldn't necessarily get you to $4.55 to $4.95.

不是。我的意思是，如果我們只是按一般的補強式（bolt-on）活動來執行，James，它會讓數字逐步改善，但不一定能讓你達到4.55到4.95美元。

That's correct.

沒錯。

Got it. And then on the big boat side, I just want to clarify, when you talk about wholesale being beneath the retail, it's just in the big boats, I'm assuming. Is that right?

了解。然後在大型船艇那邊，我只是想釐清一下，當你談到批發低於零售時，我假設那只是發生在大型船艇上。對嗎？

That's correct.

沒錯。

Okay. 3 months more...

好的。再多3個月……

Yes, what we've tried to do on the -- sorry, what we've tried to do with some of our comments is this big boat thing is a dollar issue. It's not a unit issue, right. The units are a very, very, very small fraction of what goes on with pipeline in our reported wholesale and retail units. So you really need to look at them separately.

是的，我們在——抱歉——我們試著用一些評論來說明的是：這個大型船艇的問題是金額（dollar）問題。它不是台數（unit）問題，對吧。台數在我們所揭露的批發與零售台數中，相對於整個管線（pipeline）所發生的事情，只占非常、非常、非常小的一部分。所以你真的需要把它們分開來看。

Got it. So as I think about that, the big boat issue, you've had another 3 months to maybe think about why that's happening. Any new theories as to what's making that ultra-wealthy consumer turn away, tax reform maybe, could that help? And any new theories as we -- we've got a few more months to digest all this?

了解。所以當我思考這件事——大型船艇的問題——你們又多了3個月，也許可以想想為什麼會發生。對於是什麼讓那位超高淨值消費者轉而觀望，有沒有新的推論？例如稅改，也許會有幫助？以及我們——我們還有幾個月可以消化這些，有沒有新的看法？

Well, James, I'm going to give 2 answers. One, we're talking the 41 to 65. I'm not sure that's ultra-wealthy from the category of who the buyer is there. I mean, just a clarification. But I don't think there's going to be...

嗯，James，我會給兩個回答。第一，我們談的是41到65（英尺）。我不確定以那個類別的買家來說，這算不算超高淨值。我的意思是，只是釐清一下。但我不認為會有……

I see it as ultra-wealthy, but point taken.

我把它視為超高淨值，但我接受你的觀點。

Yes, yes.

是的，是的。

Wealthier than me. A lot wealthier than me, how about that?

比我有錢。比我有錢多了，就這麼說吧？

The feedback is from dealers that are in that segment, it's more around -- it's not that there's not a customer out there, it's more about it's just taking longer and longer to close deals. And that could be things around trades, it could be any number of things but -- so I'm not sure it's -- the environment in Washington could have some impact, but I don't think anybody knows for sure.

來自該區隔經銷商的回饋比較偏向——不是說市場上沒有客戶，而是成交所需時間愈來愈長。那可能與換購（trade-in）等因素有關，也可能有各種原因，但——所以我不確定——華盛頓的環境可能會有些影響，但我想沒有人能確定。

James, I will point out that within the next 2 weeks, we'll have the Fort Lauderdale Boat Show. That's obviously a fairly important selling show for boats of this type. Sea Ray generally will hold their yacht expo towards the end of November, that's -- I mean, we're going to get some real live input here in the fourth quarter that should give us a little bit clearer view of where the consumer is there and where the market's going.

James，我要指出的是，在接下來兩週內，我們會有勞德岱堡船展（Fort Lauderdale Boat Show）。那顯然是這類船艇相當重要的銷售展會。Sea Ray通常會在11月底左右舉辦他們的遊艇博覽會（yacht expo），那——我的意思是，我們會在第四季得到一些真實的第一手回饋，應該能讓我們更清楚地看見那邊的消費者狀況以及市場走向。

And that's going to really let us dial in. I mean, typically, we'd be talking about the '18 number on the January call, but we thought it was important to get it out there now and in advance of the Investor Day.

而那將真正讓我們把數字調整到位。我的意思是，通常我們會在1月的電話會議上談'18年的數字，但我們認為重要的是現在就先把它提出來，並且在投資人日之前先行揭露。

And our next question comes from Michael Swartz from SunTrust.

下一個問題來自SunTrust的Michael Swartz。

Just quickly, I wanted to ask on the -- some of the boat issues we had in the quarter but with the hurricane. Did that have any corresponding impact on the engine business as well in terms of when they would have booked some of their revenue?

我快速問一下，關於——本季我們遇到的一些船艇問題以及颶風的影響。那是否也對引擎業務造成任何相應影響，例如他們原本會在何時認列部分營收？

Well, yes. I mean, the intercompany sales, it's got to be a sold boat for a boat -- for the engine guys to count it as an engine sale. So there's some minor impact, but again, less than 20% of -- in total, it's only a small portion of the engine business goes to Brunswick, and then the other part of that equation is mostly other places were all in markets and environments and things that weren't impacted. So big boats don't have Mercury engines in them and the Whaler stuff, as we've said, will have some catch up [to it yet]. But the engine business really had very little impact from the hurricane.

嗯，是的。我的意思是，關係企業間（intercompany）的銷售，必須是船已售出——對引擎部門來說，才能把它算作一筆引擎銷售。所以有一些輕微影響，但同樣地，不到20%——整體而言，引擎業務中只有一小部分是供應給Brunswick；而這個等式的另一部分是，多數其他地區都在未受影響的市場與環境中運作。所以大型船艇不會使用Mercury引擎，而Whaler的部分，如我們所說，之後會有一些追趕（catch up）。但引擎業務實際上幾乎沒有受到颶風影響。

Although we did have some P&A business that we -- was either lost or deferred because we've got distribution operations in Florida and the Houston area that probably felt a little bit of it, so.

雖然我們確實有一些 P&A 業務——因為我們在佛羅里達與休士頓地區有配銷營運，可能多少受到了一點影響——所以那部分要嘛流失、要嘛延後了。

Okay. And then just on the Fitness side, I'm just trying to kind of get a sense of maybe what happened or when you saw it happen during the quarter. Because typically, I was under the assumption that you had pretty good visibility in the back half of the year by the time you got to late July, and typically give second quarter guidance. So just trying to understand better what changed and really when it changed.

好的。那接著在 Fitness 這一塊，我只是想大概了解一下，本季期間可能發生了什麼，或你們是在什麼時候看到它發生的。因為一般來說，我原本以為到 7 月下旬時，你們對下半年通常有相當不錯的能見度，並且通常會給出第二季的指引。所以只是想更清楚了解，到底是什麼改變了，以及真正是在什麼時候改變的。

Yes. The clarification, what we've said is we get a 60 to maybe 90 days visibility. That's about all the visibility we have on that business in terms of orders. Now we get some strategic view that somebody will say, they plan to refresh X or open Y. But in terms of actual orders, it's a shorter horizon. So one was when we started really -- that's a point of visibility. But in terms of when we started really seeing, it was probably early September in terms of maybe those orders not being where we thought they were going to be. But the margin piece of the equation, I mean, from a price and competitive market, that's really -- it's really the specific geographic areas. And that's live, literally, as deals are happening and being conducted, you're seeing that stuff going on. But I would tell you that at the point we were looking at third quarter in the July call, we didn't have visibility to the degree that we were impacted in the third quarter.

是的。澄清一下，我們說的是我們大概只有 60 到可能 90 天的能見度。就訂單而言，這差不多就是我們在那個業務上所能看到的全部能見度。當然我們會有一些策略性的視角，例如有人會說他們計畫汰換 X 或開設 Y；但就實際訂單而言，時間範圍更短。所以其一是當我們開始真正——那是一個能見度的時間點。但就我們何時開始真正看到而言，大概是在 9 月初，開始發現那些訂單可能沒有如我們原先預期那樣。但至於毛利這一塊，我是說，從價格與競爭市場的角度來看，那其實——主要是特定的地理區域。而且那是即時的，真的就是交易正在發生、正在進行時，你就會看到那些情況在發生。但我會告訴你，在我們於 7 月電話會議檢視第三季時，我們並沒有能見度到足以看出第三季會受到那樣程度的影響。

And Mike, the only thing I would point out is that September is when the business really ramps up for the end of the year. There's a pretty marked change between July, August and then the September sales levels. So that's when a lot of the sales decline occurred. And I would just say, on the margin side, we had -- really hadn't expected the margin environment to maybe stabilize. It got a little bit more challenging than we originally expected. But some of this, we had already incorporated into our guidance and plan for the year.

Mike，我唯一想補充的是，9 月是年底旺季業務真正開始加速的時候。7 月、8 月與 9 月的銷售水準之間有相當明顯的變化。所以很多銷售下滑就是在那時候發生的。另外就毛利面而言，我們原本——其實並沒有預期毛利環境會穩定下來。它變得比我們最初預期更具挑戰。不過其中有一部分，我們其實已經納入我們對全年指引與計畫之中。

Okay. And then just a final question, just clarification on some of the comments you've made around Fitness and timing of sales. It sounds like you had some revenue shift from the third quarter to the fourth quarter, any way to quantify that? And then, Mark, I think you said that growth in the Fitness business for the fourth quarter year-over-year would look similar to the third quarter. Are you talking about organic growth or all-in growth of 2%?

好的。最後一個問題，想釐清你們對 Fitness 與銷售時點的一些評論。聽起來你們有一些營收從第三季移到第四季，有沒有辦法量化一下？另外，Mark，我想你說第四季 Fitness 業務的年增率看起來會跟第三季類似。你指的是有機成長，還是包含併購在內的整體成長 2%？

No, I was talking about the organic growth.

不，我指的是有機成長。

We really don't have any acquisition impact in Q4, Michael, so it's all organic.

Michael，我們第四季其實沒有任何併購影響，所以全部都是有機的。

Okay. And then any clarification on the shift?

好的。那關於移轉的部分，有沒有任何補充說明？

If you take a look, we isolated our comments to Europe. And it was a portion of the reason why Europe was down 5% year-to-date. It would get to a point to 2 points of growth for the business.

如果你看一下，我們的評論是聚焦在歐洲。而這也是歐洲年初至今下滑 5% 的部分原因。它大概會為整體業務帶來 1 到 2 個百分點的成長。

Our next question comes from Joe Altobello from Raymond James.

下一題來自 Raymond James 的 Joe Altobello。

I guess, since we're talking about Fitness, I'll start here. Obviously, the change in the competitive landscape in Europe impacted this quarter. But it doesn't sound like it's changed your long-term outlook. I just want to clarify there. Is there any change to that long-term outlook of high single digit growth and maybe 15-ish percent margins for that business?

我想既然我們在談 Fitness，我就從這裡開始。很明顯，歐洲競爭態勢的變化影響了本季。但聽起來這並沒有改變你們的長期展望。我只是想在這裡確認一下。對於該業務長期「高個位數成長」以及大約 15% 左右毛利率（或利潤率）的展望，有任何改變嗎？

Joe, I think -- I don't think it would be -- I don't think it's changed our long-term view of the business nor where our expectations of where we can get margins to. I think it has pushed it out a little bit. I don't think it's going to happen in the exact same time frame. But strategically, we still believe that all the fundamentals around this business are the right kind of fundamentals. And the other part is the fact that things we're working on from a technology perspective, we believe will help. But I'd encourage you to come to the Investor Day here in less than 2 weeks, and we'll spend a lot more time laying out the longer-term view as part of that meeting.

Joe，我想——我不認為——我不認為這改變了我們對該業務的長期看法，也沒有改變我們對毛利率能達到水準的預期。我認為它只是把時間點往後推了一點。我不認為會在完全相同的時間框架內發生。但從策略上，我們仍然相信這個業務的各項基本面都是正確的那種基本面。另外一部分是，我們在技術面正在推動的事情，我們相信會有所幫助。不過我也鼓勵你在不到兩週後來參加投資人日，我們會在那場會議中花更多時間闡述更長期的觀點。

Okay, great. It sounds like the price pressure that you saw was predominantly on cardio, which is in sync since you guys just did the cardio refresh. So I was curious if that was a reflection on the success of that launch at all?

好的，很棒。聽起來你們看到的價格壓力主要是在有氧器材（cardio）上，這也符合你們剛完成有氧產品更新。所以我想了解，這是否在某種程度上反映了那次上市（launch）的成功與否？

No. Let's be real clear. You're correct, it was on cardio, but it was really all on current production, not anything to do with new products. In fact, it was existing product that has been out and around there for a while that we were feeling more pressure on, not new product.

不是。我們把話說清楚。你說得對，壓力是在有氧器材上，但那完全是針對目前在生產的產品，與新產品無關。事實上，我們感受到較大壓力的是已經上市一段時間、在市場上流通的既有產品，而不是新產品。

Okay. And just lastly, your free cash flow guide, no change there. It implies a pretty big number in the fourth quarter, which is fairly unusual seasonally. Help us understand where that comes from.

好的。最後，你們的自由現金流指引沒有改變。這暗示第四季會有一個相當大的數字，而就季節性來說這相當不尋常。請幫我們理解那是從哪裡來的。

Yes, some of it's the working capital. [Build] reverses and CapEx is timed a little bit differently and you've got, obviously, some earnings improvement embedded in there. Those 3 things will get you to a better fourth quarter number.

是的，其中一部分來自營運資金。[Build] 會回轉，資本支出（CapEx）的時點也稍微不同，另外很明顯地，裡面也包含了一些獲利改善。這三件事會讓你看到第四季的數字更好。

Our next question comes from Greg Badishkanian from Citi.

下一題來自 Citi 的 Greg Badishkanian。

Just on the Fitness side, in terms of the challenging global environment that pressured sales and margins that you've talked about, just could you -- how has that changed since, let's say, the beginning of the year?

同樣在 Fitness 這邊，關於你們提到的具挑戰性的全球環境對銷售與毛利造成壓力，想請問——相較於例如年初，這些情況有什麼變化？

Well, I think a couple of things. It's -- earlier in the year, we saw some mix shifts going on between some of the product side, but the Europe became more prominent as we've gone through the year, both in terms of the makeup of the customer that's buying the product there as well as the competitive environment that we're operating in over there. I mean, some dynamics have changed in that market, Greg, as we went through the year.

嗯，我想有幾點。——在年初時，我們看到產品端之間出現一些組合（mix）移轉，但隨著今年進行，歐洲變得更為突出，不論是在那裡購買產品的客戶結構，或是我們在那邊所處的競爭環境。我是說，Greg，隨著今年推進，那個市場的一些動態確實有所改變。

Our next question comes from Seth Woolf from Northcoast Research.

下一題來自 Northcoast Research 的 Seth Woolf。

Just -- I wanted to ask you about the Fitness business. I don't want to belabor the point, but ex acquisition, it was flat. And at the beginning of the year, the narrative in the Fitness business was how we would see the new products drive acceleration. Now we're talking about additional challenges. So does that mean if it wasn't for the new products then the business would be even softer? Or did that not have an impact? And then just kind of digging through this a little bit further, are the new products not having the impact that you envisioned or is it still a function of the weaker market?

我想——我想問你們關於 Fitness 業務。我不想一直重複這點，但扣除併購後是持平的。而在年初時，Fitness 業務的敘事是我們會看到新產品帶動成長加速。現在我們在談更多額外的挑戰。所以這是否表示，如果不是因為新產品，業務會更疲弱？還是新產品其實沒有帶來影響？另外再深入一點，新產品是否沒有達到你們原先設想的影響力，還是這仍然是市場較疲弱所致？

Well, let me -- I'd say, early in the year, the timing was probably a little heavier in Q3 on the new product launch. So -- and it's probably ramping up more -- more of a ramp-up in Q3 and going into Q4. So there's nothing about the success of the new product and the feedback we're getting. It's probably from early in the year, it's probably shifted slightly from a ramp-up perspective. So what we're really talking about is not the new product. And I want to remind people -- from the time frame of when you announce it to you start building it to you get everybody going, that's not an instant pudding. And we're still -- we're going through the ramp-down right now of existing product. That will happen through the -- we'll pretty much be complete by the end of the first quarter, and then going through the ramp-up of the new. So what we're talking about in the market isn't a reflection of our new product. It's just a reflection of things we're seeing in the marketplace. And to -- something I said earlier, we would expect that the new product would potentially have some stimulus to wanting to, again, stimulate a little demand in the market. But that remains to be seen yet.

嗯，讓我——我會說，在年初的時候，時程安排可能在第三季（Q3）新產品上市上稍微更集中一些。所以——而且它可能正在加速——在Q3有更多的爬坡，並延續到Q4。所以這跟新產品的成功與我們收到的回饋沒有關係。比較可能是從年初開始，從爬坡的角度來看，時程稍微有些移動。所以我們真正談的不是新產品。我想提醒大家——從你宣布到開始建置、到讓所有人都動起來的這段時間，並不是立刻就能完成的。而我們現在仍在——進行既有產品的降載（ramp-down）。這會持續到——我們大概會在第一季末前基本完成，然後再進入新產品的爬坡（ramp-up）。所以我們在市場上談到的狀況，並不是對我們新產品的反映。它只是我們在市場上看到的一些現象的反映。而且——呼應我先前說的，我們預期新產品可能會帶來一些刺激，讓市場需求再次——稍微被帶動一下。但這一點目前仍有待觀察。

Okay. I guess, just real quick, bigger picture question on the Fitness business. With the market pressure, we're not seeing the margins that we've grown accustomed to seeing, but how do we square some of the commentary with -- the historical margins in this business, it used to be more of a mid-single, high single digit business. You saw a lot of improvement, can you just help us think about -- just remind us some of the drivers that led to the robust growth in margins that we've seen? And then why you still feel good about the mid-teens target longer term? And that's it for me.

好的。我想，快速問一個更宏觀的健身（Fitness）業務問題。在市場壓力下，我們沒有看到我們過去習慣的那種毛利率水準，但我們要如何把一些評論與——這個業務的歷史毛利率對照起來？它過去比較像是中個位數到高個位數的業務。你們看到很多改善，你能否幫我們思考一下——也提醒我們一下，過去推動我們看到毛利率強勁成長的一些驅動因素是什麼？以及為什麼你們長期仍對「中十位數」的目標感到有信心？我就問到這裡。

Yes, I want to go back, Seth, and make sure we're calibrated properly. I mean, that business used to be high single low teens, low double digits is where that business historically has operated. It got up into, I'll say, the 13s, 14s clearly, but that was -- that wasn't the normal place that business was operating. And fundamentally, what some of the things that have changed, obviously, is -- and we've said this before, we're growing at a faster rate in strength in cardio and new products, we'll have some help there. But our strength business has a lower margin to it than the cardio. So some of that has some impact on mixing down as well. Customers are getting bigger. That has some impact versus where it was historically. But I think as you go back and look at it, Seth, you're going to see that the business has been in high single to low doubles and -- from a historical perspective.

是的，Seth，我想回到這點，並確保我們的認知校準正確。我的意思是，這個業務過去是高個位數到低十位數、也就是低雙位數，這是它歷史上運作的區間。它確實曾上升到——我會說，明顯到13%、14%左右，但那——那並不是這個業務正常運作的水準。而從根本上來看，一些改變的因素，顯然是——我們以前也說過，我們在力量（strength）、有氧（cardio）以及新產品上的成長速度更快，這方面會有一些助益。但我們的力量業務毛利率比有氧低。所以其中一部分也會對產品組合下移（mixing down）造成影響。客戶規模正在變大。相較於歷史水準，這也會帶來一些影響。但我認為，Seth，你回頭看會發現，從歷史角度來看，這個業務一直是在高個位數到低雙位數的區間運作。

Seth, the only thing I'll add to that is, is that I think as you listen to our prepared comments and start thinking about things you might hear about on Investor Day, the -- part of what Mark referenced with customer product mix, et cetera, is there. But you've also got a dynamic where the larger customers within markets are growing faster than everybody else. And there's a -- I think embedded in that is our desire to continue to be extremely competitive operationally on the cost side. And I think as we look forward, we plan to be very well positioned there.

Seth，我唯一要補充的是，我認為當你聽完我們事先準備的評論，並開始思考你可能在投資人日（Investor Day）聽到的內容時——Mark提到的客戶與產品組合等因素確實存在。但你也會看到一個動態：各市場中規模較大的客戶成長速度比其他所有人都更快。而且——我認為其中隱含的是，我們希望在成本端持續保持極具競爭力的營運能力。我認為展望未來，我們計畫在這方面處於非常有利的位置。

At this time, we would like to turn the call back to Mark for some concluding remarks.

此時，我們想把電話交回給Mark，請他做一些結語。

Yes. I'm just going to echo a couple of things. First, thank everyone for the time and attention in joining us today. The second point is, I want to make sure people understand, we view this as a disappointing quarter but fundamentally, remind people that the direction and what we've laid out for the full year will put us back into -- it's going to be another year of record earnings. So we think our strategy is still the right strategy, the cash flows are really strong on this business. And I think all that will play out and I really look forward to -- it's about 12 days from now when we're together on November 7 to speak some more about this. So thank you for your time today.

是的。我只是想重申幾點。首先，感謝各位今天撥冗加入並給予時間與關注。第二點是，我想確保大家理解，我們認為這是一個令人失望的季度，但從根本上來說，也提醒大家，我們對全年所規劃的方向與所提出的內容，將使我們回到——這將會是另一個創紀錄獲利的一年。所以我們認為我們的策略仍是正確的策略，這項業務的現金流非常強勁。我認為這些都會逐步展現出來，我也非常期待——大約12天後，也就是11月7日我們再聚在一起時，能就此再多談一些。所以謝謝大家今天的時間。

Thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating, and you may now disconnect.

謝謝各位女士、先生。今天的會議到此結束。感謝各位參與，您現在可以掛線。