賓士域 (BC) 2018 Q3 法說會逐字稿

Good morning, and welcome to Brunswick Corporation's 2018 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 2018年第三季財報電話會議。(接線員指示) 今天的會議將會錄音。若您有任何異議，請於此時中斷連線。

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

現在我想介紹投資人關係副總裁Ryan Gwillim。Ryan Gwillim，您可以開始了。

Good morning. 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。今天早上的電話會議出席者包括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. For 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.

在開始我們預先準備的發言之前，我想提醒各位，在本次電話會議中，我們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有重大差異。關於需考量的因素詳情，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'll be referring to certain non-GAAP financial information. Reconciliations of GAAP to non-GAAP financial measures are provided in the appendix to this presentation and 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，已提供於本簡報附錄，以及隨今日結果一併提供之合併財務報表中的調節章節。

As a reminder, as a result of the June announcement regarding Sea Ray, the results of the entire Sea Ray business are, again, being reported in continuing operations for GAAP purposes, which matches the basis of reporting using comparable 2017 periods. However, as adjusted, non-GAAP result exclude the Sea Ray sport yacht and yacht operations that are being wound down. Therefore, for all periods presented in this release, all figures and outlook statements incorporate these changes unless otherwise noted. For more information, please see the Form 8-K dated July 19, 2018, which includes metrics on a GAAP and an as-adjusted basis reflecting these changes.

提醒各位，由於6月關於Sea Ray的公告，依GAAP目的，整個Sea Ray業務的結果再次列報於持續營運中，這與使用可比較的2017年期間之報導基礎一致。然而，經調整後的非GAAP結果排除正在結束營運的Sea Ray運動遊艇與遊艇業務。因此，就本新聞稿所呈列的所有期間而言，除非另有註明，所有數字與展望陳述均已納入這些變更。更多資訊請參閱2018年7月19日的Form 8-K，其中包含反映上述變更之GAAP及經調整基礎的指標。

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

現在我想把電話會議交給Mark。

Thank you, Ryan, and good morning. Before we start our review of the quarter, as you likely saw in a separate announcement this morning, I have decided to retire as Chairman and CEO of Brunswick at the end of this year. With the separation of Fitness underway and the focus of our future in the marine business, I think now is an ideal time to make this change.

謝謝你，Ryan，早安。在我們開始回顧本季之前，如同各位今天早上可能在另一則公告中看到的，我已決定於今年年底自Brunswick董事長兼執行長職務退休。隨著Fitness分拆正在進行，以及我們未來重心聚焦於海事業務，我認為現在是做出此變更的理想時機。

As we've discussed before, we have a robust succession planning process and a very rich talent bench. From that talent pool, I'm pleased to announce that replacing me as the CEO will be David Foulkes. David is a bright and talented leader. He and I have worked together for over 10 years, and he has been an integral part of both of our success and our strategy development. He will lead the team by not only executing the strategy, but building out our business. Between now and the end of the year, I'll be actively engaged in the business and working closely with David to ensure a smooth transition.

如同我們先前討論過的，我們有健全的接班規劃流程，以及非常充沛的人才梯隊。在該人才庫中，我很高興宣布接任我擔任執行長的是David Foulkes。David是一位聰明且有才華的領導者。我與他共事超過10年，他一直是我們成功與策略發展中不可或缺的一部分。他將帶領團隊，不僅執行策略，也將擴展我們的業務。從現在到年底，我將持續積極參與業務，並與David密切合作，以確保順利交接。

So with that, let's move on to a review of a tremendous third quarter. Our third quarter performance reflects the outstanding execution of our marine strategy, evidenced by the strong financial contributions from each of the propulsion, parts and accessory and boat businesses. We concluded the primary marine retail-selling season, leveraging a steady marine market and robust demand for outboard engines into significant top line growth and margin expansion.

那麼，接下來讓我們回顧一個表現卓越的第三季。我們第三季的表現反映出海事策略的出色執行，推進系統、零件與配件以及船艇業務皆帶來強勁的財務貢獻。我們在主要海事零售銷售季節告一段落之際，憑藉穩健的海事市場與對舷外引擎的強勁需求，帶動顯著的營收成長與利潤率擴張。

Led by increased production of our new outboard engine lineup, continued success of our leading parts and accessories business, which was augmented by the closing of the Power Products acquisition in August and the improving operating execution across our businesses, we delivered financial results in the quarter that demonstrate the effectiveness of our strategy.

在新款舷外引擎產品線增產、領先的零件與配件業務持續成功（並於8月完成Power Products收購而進一步增強），以及各業務營運執行改善的帶動下，我們在本季交出能展現策略有效性的財務成果。

During the quarter, Mercury overachieved versus planned run rate production on our new 175 to 300 horsepower V6 and V8 engines, with the substantial demand for these products continuing to far exceed expectations. Despite a mid-teens percent increase in year-to-date production levels of our outboard engines greater than 75 horsepower, we expect that demand will still outpace production for these horsepower categories into 2019, even as we execute against our planned investments and our initiatives to further increase capacity.

本季，Mercury在新款175至300匹馬力V6與V8引擎的產量上超越原先規劃的運轉率，且這些產品的強勁需求持續遠超預期。儘管年初至今我們75匹馬力以上舷外引擎的產量已提高約十幾個百分點，我們預期在2019年這些馬力級距的需求仍將超過供給，即使我們正依計畫進行投資並推動進一步提升產能的各項措施。

Our boat business delivered a strong top line and earnings improvement in the quarter led by Boston Whaler, the Sea Ray sport boats and cruisers and Lund. The segment is well positioned moving forward, with dealer and consumer sentiment remaining favorable, pipelines appropriately positioned and new product offerings leading to positive momentum in advance of the boat show season.

我們的船艇業務在本季實現強勁的營收與獲利改善，主要由Boston Whaler、Sea Ray運動船與巡航艇以及Lund所帶動。展望未來，該事業部門具備良好態勢，經銷商與消費者信心仍然正向，通路管線配置適當，新產品供給也在船展季節前帶來正向動能。

Our Fitness business posted solid top line growth, while gross margins were down on a sequential basis due to inventory cost adjustments, primarily related to product transitions. The business continues to evaluate and implement initiatives to enhance operating performance, but margin improvement is taking longer than planned. The team continues to execute against its business strategy as it prepares for separation from the portfolio in 2019.

我們的Fitness業務營收穩健成長，但由於存貨成本調整（主要與產品轉換相關），毛利率較前一季下滑。該業務持續評估並推動提升營運績效的各項措施，但利潤率改善所需時間比原先規劃更長。團隊在為2019年自投資組合分拆做準備之際，仍持續執行其業務策略。

Finally, as evidenced by the recent dividend increase, our pension contribution activity and the financing actions related to the Power Products acquisition, we continually -- we continue to successfully execute our capital strategy.

最後，從近期股利調升、我們的退休金提撥活動，以及與Power Products收購相關的融資行動可見，我們持續——我們繼續成功執行資本策略。

Our third quarter adjusted diluted earnings per share was $1.28, which was up 31% over the third quarter of 2017, and exceeded our guidance by almost 9%. Revenue increased 15%, including the benefits from acquisitions with contributions from all 3 segments. As anticipated, the marine business gross and operating margins expanded strongly, resulting in robust operating earnings growth of 17%.

我們第三季調整後稀釋每股盈餘為1.28美元，較2017年第三季成長31%，並較我們的指引高出將近9%。營收成長15%，其中包含收購帶來的效益，且三個事業部門皆有貢獻。如預期，海事業務的毛利率與營業利益率大幅擴張，帶動營業利益強勁成長17%。

Now I'll provide our perspective on the U.S. marine market. Based upon the preliminary SSI data for the third quarter, which on average comprises slightly less than 30% of the year at retail when fully reported, the main powerboat segments grew approximately 7%, leading to a year-to-date growth rate of 3%. Outboard engine growth was consistent with these levels, with increases of 3% for both quarter and year-to-date. Mercury outperformed the industry figures by a wide margin, taking share as a result of the freshest lineup of outboard engines in the industry.

接下來我將分享我們對美國海事市場的看法。根據第三季初步SSI數據（在完整回報後，平均約略占全年零售量不到30%），主要動力船細分市場約成長7%，使年初至今成長率達3%。舷外引擎成長與此一致，無論本季或年初至今皆成長3%。Mercury大幅優於產業數據，憑藉業界最新的舷外引擎產品線而取得市占。

Year-to-date, market growth continues to be led by aluminum fish product and pontoons, with saltwater fishing product over 23 feet also showing solid gains. Although still down for the year, sales of sterndrive product grew in the third quarter with Sea Ray sport boats and cruisers continuing to take share and drive growth in the 24- to 40-foot categories.

年初至今，市場成長仍由鋁製釣魚船產品與浮筒船（pontoons）帶動，23英尺以上的鹽水釣魚船產品亦呈現穩健增長。雖然全年仍為下滑，但艉內外機（sterndrive）產品銷售在第三季成長，Sea Ray運動船與巡航艇持續提升市占，並帶動24至40英尺級距的成長。

Finally, consistent with the theme throughout the year, SSI data continues to be incomplete when initially reported, with upward revisions almost every month this year when fully reported. We believe this trend will continue as we finish up the year.

最後，與今年以來的主軸一致，SSI數據在初次發布時仍不完整，而在完整回報後，今年幾乎每個月都出現上修。我們相信，隨著今年接近尾聲，這一趨勢將會持續。

Next, I would like to share some perspective on our retail data for boats based upon our pipeline inventory activity. Our internal U.S. retail registrations for the third quarter were down 8% against the strong third quarter 2017 and are down 1% year-to-date. Global retail unit sales decreased 3% over the third quarter of 2017 and are flat year-to-date against 2017.

接著，我想根據我們的管線存貨活動，分享一些基於船艇零售數據的觀點。我們內部統計的美國第三季零售登記量，較強勁的2017年第三季下滑8%，年初至今下滑1%。全球零售銷售量較2017年第三季下降3%，年初至今與2017年持平。

Similar to the first half of the year, these unit results were influenced by Bass Pro's acquisition of Cabela's in September of 2017, which was a meaningful channel for our Lowe boat brand. If you exclude the impact of Lowe from these results, our year-to-date growth would be 3%, both in the U.S. and globally, which is generally in line with the industry growth as just discussed. We've been actively rebuilding and strengthening our dealer network for Lowe product and look for improving trends in the upcoming model year.

與上半年類似，這些銷量結果受到Bass Pro於2017年9月收購Cabela's的影響；Cabela's曾是我們Lowe船艇品牌的重要通路。若排除Lowe的影響，我們年初至今的成長將為3%，無論在美國或全球皆然，整體大致與剛才所述的產業成長一致。我們一直積極重建並強化Lowe產品的經銷商網絡，並期待在即將到來的車型年度看到改善趨勢。

Next, I would like to review with you our current perspectives on the regional marine markets. Excluding acquisition and currency impacts, the Marine revenue in Europe for the first 3 quarters of the year is up 3%, mostly driven by engine and P&A sales. We still anticipate flat boat sales in Europe for the full year due to challenging retail trends and a small impact of retaliatory tariffs on boats imported from the U.S.

接下來，我想與各位回顧我們目前對各區域海事市場的看法。排除併購與匯率影響後，今年前3季歐洲海事業務營收成長3%，主要由引擎與零配件及配件（P&A）銷售帶動。由於零售趨勢具挑戰性，以及對自美國進口船艇課徵報復性關稅對銷售造成些微影響，我們仍預期歐洲全年船艇銷售將持平。

As we noted on the last call, weather impacted the retail selling season in Europe with new outboard engines products beginning to stimulate demand in the third quarter.

如同我們在上次電話會議中提到的，天候影響了歐洲的零售銷售季，而新的舷外機產品在第三季開始刺激需求。

In Canada, strong retail continues to drive growth, and it's outpacing wholesale. We are planning for the second half wholesale boat demand to slope substantially as dealers delay offseason stocking orders of boats imported from the U.S. due to the retaliatory tariffs. Currently, a little more than half of the boats we sell annually in Canada are imported from the U.S. with the remainder sold by our Québec-based Princecraft brand, which remains well positioned to serve this market.

在加拿大，強勁的零售持續帶動成長，且成長速度超過批發。我們規劃下半年批發船艇需求將明顯趨緩，因經銷商因報復性關稅而延後對自美國進口船艇的淡季備貨訂單。目前，我們在加拿大每年銷售的船艇中，略多於一半為自美國進口，其餘則由我們位於魁北克的 Princecraft 品牌銷售；該品牌仍具備良好定位以服務此市場。

On balance, the remaining international markets continue to post revenues consistent with a strong 2017, as we continue to benefit from engine share gains, resulting from the new outboard engine launch.

整體而言，其餘國際市場的營收仍與強勁的2017年一致；我們持續受惠於新款舷外機上市所帶來的引擎市占提升。

In summary, we continue to expect the full year 2018 domestic unit growth to be towards the lower end of our initial 3% to 5% guidance range with global unit growth in line with the U.S. As demonstrated through our results this year, Brunswick's revenue growth will continue to outperform unit growth figures as a result of favorable changes in product mix, market share gains resulting from continued focus on new products, particularly in outboard engines, and increases in average sales price.

總結來說，我們仍預期2018年全年美國國內單位數成長將落在原先3%至5%指引區間的較低端，全球單位數成長則與美國一致。如同我們今年的成果所示，Brunswick 的營收成長將持續優於單位數成長，原因在於產品組合的有利變化、持續聚焦新產品（尤其是舷外機）所帶來的市占提升，以及平均售價的提高。

Moving to our Fitness segments. Revenue increased by 3% in the first 3 quarters of 2018, with 2% growth on a constant currency basis. Fitness sales in the U.S. were down 1% year-to-date, primarily the result of lower Cybex sales and softness in several vertical channels. These factors offset solid growth in our strength products and our new Life Fitness cardio offerings. The U.S. market continues to trend toward flat to slight growth, with value-oriented clubs outpacing traditional offerings.

接著談我們的健身事業部門。2018年前3季營收成長3%，以固定匯率計成長2%。美國健身產品銷售年初至今下滑1%，主要是 Cybex 銷售較低以及數個垂直通路需求偏弱所致。上述因素抵銷了我們肌力產品的穩健成長，以及新推出的 Life Fitness 有氧產品帶來的成長。美國市場持續呈現持平至小幅成長的趨勢，其中偏重性價比的健身俱樂部表現優於傳統產品。

European sales experienced modest growth in the quarter. However, revenue was up 6% year-to-date. Asia-Pacific demand remains very healthy, up 8% against the strong performance in 2017. Our plan anticipates that performance in Europe and Asia-Pacific slows in the fourth quarter, resulting in the overall international sales for the year growing slightly from 2017 levels.

歐洲銷售在本季呈現溫和成長。然而，年初至今營收成長6%。亞太地區需求仍非常健康，在2017年強勁表現的基礎上成長8%。我們的計畫預期歐洲與亞太在第四季的表現將放緩，使得全年國際銷售較2017年僅小幅成長。

And now, I'll turn the call over to Bill for additional comments on our financial performance.

接下來我把電話交給 Bill，請他就我們的財務表現補充說明。

Thanks, Mark. For the third quarter, adjusted net sales increased by 15%. Our combined marine business sales grew 18%, with a 4% lift from acquisitions, and Fitness sales increased by 5%. Currency had a slight negative impact on third quarter sales growth.

謝謝你，Mark。第三季，調整後淨銷售額成長15%。我們合併後的海事業務銷售成長18%，其中併購帶來4%的提升；健身業務銷售成長5%。匯率對第三季銷售成長造成些微負面影響。

For the year, adjusted net sales are up 9%. Sales in the combined marine business are up 11%, with acquisitions and currency providing a 2% and 1% benefit, respectively. Fitness sales are up 3% for the year, which also includes a 1% favorable currency impact.

就全年而言，調整後淨銷售額成長9%。合併後海事業務銷售成長11%，其中併購與匯率分別帶來2%與1%的助益。健身業務全年銷售成長3%，其中也包含1%有利的匯率影響。

Turning to gross margin percentage on an as-adjusted basis. The combined marine business grew 70 basis points over third quarter 2017 levels with year-to-date gross margins relatively consistent with the prior year. Fitness gross margins remained challenged as compared to 2017 and are below year-to-date performance due to the inventory adjustments, which Mark referenced earlier.

接著看調整後的毛利率。合併後海事業務毛利率較2017年第三季提高70個基點，年初至今毛利率與去年大致一致。健身業務毛利率相較2017年仍具壓力，且因 Mark 先前提到的存貨調整，毛利率低於年初至今的表現。

Our adjusted operating margin was 11.9%, which was slightly higher than Q3 of 2017, marking the first quarter in the last 7 that we've reported consolidated operating margin growth.

我們的調整後營業利益率為11.9%，略高於2017年第三季，這也是過去7個季度以來我們首次呈報合併營業利益率成長。

As Mark stated earlier, operating earnings for the combined marine businesses grew 31%, and operating margins increased by 160 basis points versus the third quarter of last year. These results evidenced the strong volume gains, improved cost position of the new Mercury outboard engines and the immediate benefits from the acquisition of Power Products.

如 Mark 先前所述，合併後海事業務的營業利益成長31%，營業利益率較去年第三季提高160個基點。這些結果反映出強勁的銷量成長、新款 Mercury 舷外機的成本結構改善，以及併購 Power Products 所帶來的即時效益。

On a year-to-date basis, adjusted operating earnings were up 5% over 2017, with Marine business adjusted operating earnings up 13%.

以年初至今來看，調整後營業利益較2017年成長5%，其中海事業務調整後營業利益成長13%。

Turning to our Marine Engine segment. Revenues increased by 20%. Propulsion sales grew by 24% led by outboard engines, as our successful new products, continued customer migration to higher horsepower product and a healthy market are driving results. We continue to gain market share in almost all horsepower categories and believe our overall domestic retail unit market share is at the highest levels in almost 20 years.

接著看我們的海事引擎事業部門。營收成長20%。推進系統（Propulsion）銷售成長24%，由舷外機領軍；我們成功的新產品、客戶持續轉向更高馬力產品，以及健康的市場環境共同推動了成果。我們在幾乎所有馬力級距持續提升市占，並相信我們在美國國內零售單位市占已達近20年來的最高水準。

Our internal outboard engine unit registration data is consistent with this strong growth, with a 13% increase in registrations in the quarter and 7% increase year-to-date.

我們內部的舷外機單位登記資料也與此強勁成長一致，本季登記量成長13%，年初至今成長7%。

While the boat business is facing headwinds from the Cabela's transition, Mercury has benefited from increased share with this customer.

雖然船艇業務正面臨 Cabela's 轉換帶來的逆風，但 Mercury 因在該客戶的市占提升而受惠。

The P&A business grew 16% or 5%, excluding acquisitions, benefiting from strong pull-through of engine control systems and other first fit parts sold through a growing list of OEM partners. Both the products and distribution businesses added to this growth, with Power Products contributing approximately $3 million, $4 million of the segment sales in the quarter, which represented about 7 weeks of results after the closing of the acquisition.

零配件及配件（P&A）業務成長16%；若排除併購影響則成長5%，受惠於引擎控制系統及其他首裝零件（first fit parts）的強勁帶動效應，並透過不斷擴大的 OEM 合作夥伴名單銷售。產品與通路業務皆推動了此成長；Power Products 在本季為該部門銷售貢獻約300萬至400萬美元，約占該部門本季銷售額的7%，這代表併購完成交割後約7週的業績。

Mercury's adjusted operating earnings in the third quarter grew by 28%, and operating margins were 18.4%. The increase in operating earnings was a result of higher sales, the favorable impact from changes in sales mix, including the benefits from new products, and contributions from the Power Products acquisitions.

Mercury 第三季調整後營業利益成長28%，營業利益率為18.4%。營業利益的增加來自較高的銷售額、銷售組合變化帶來的有利影響（包含新產品效益），以及 Power Products 併購案的貢獻。

Importantly, after strong third quarter gains, Mercury's year-to-date adjusted operating margins are now in line with 2017 and are positioned to expand for the full year, as previously planned.

重要的是，在第三季強勁成長之後，Mercury 年初至今的調整後營業利益率已與2017年持平，並如先前規劃，具備在全年擴張的態勢。

In our boat segment, third quarter adjusted revenues increased by 9%. The saltwater fishing business, led by Boston Whaler, grew by 32% due in part to the impact of 2017 hurricane activity in the U.S. The recreational fiberglass boat business posted revenue growth of 2% in the quarter, led by solid top line growth at Sea Ray's sport boats and cruisers, including favorable changes in product mix. This improvement was partially offset by weakness in our European Boat brands due to the factors that Mark discussed earlier.

在我們的船艇事業部門，第三季調整後營收成長9%。鹹水釣魚業務由 Boston Whaler 領軍，成長32%，部分原因是2017年美國颶風活動的影響。休閒玻璃纖維船艇業務本季營收成長2%，主要由 Sea Ray 的運動型船艇與巡航艇帶動，並包含產品組合的有利變化。上述改善部分被我們歐洲船艇品牌的疲弱所抵銷，原因為 Mark 先前討論的因素。

The aluminum freshwater business grew by 2% in the quarter, as solid sales of pontoons and one product offset continued weakness at Lowe to the transition away from Cabela's and slower wholesale demand in Canada due to the tariffs.

鋁製淡水船艇業務本季成長2%；浮筒船（pontoon）及某一產品的穩健銷售，抵銷了 Lowe 因逐步退出 Cabela's 轉換所造成的持續疲弱，以及加拿大因關稅導致批發需求放緩的影響。

Global wholesale unit shipments for the third quarter decreased 6% and were down 2% in the U.S. Year-to-date, wholesale shipments are down 4%, both domestically and globally against a strong 2017, due mostly to the factors impacting our Lowe brand and Canadian, European exports described earlier.

第三季全球批發出貨單位數下滑6%，美國則下滑2%。年初至今，批發出貨在美國國內與全球皆下滑4%；在2017年強勁基期下，主要是因前述影響 Lowe 品牌以及加拿大、歐洲出口的因素所致。

Changes in average selling prices increased by 17% on a constant currency basis in the third quarter and are up 9% for the year. These increases stem from changes in mix across the portfolio as customers continue to migrate to boats with more content and higher horsepower engines, which is adding top line benefits. In addition, we have raised prices in response to cost pressures, particularly in pontoon and aluminum fish products.

以固定匯率計，第三季平均售價變動帶來17%的提升，全年則提升9%。這些提升源自產品組合在整體產品線中的變化，因客戶持續轉向配備更多內容與更高馬力引擎的船艇，進而帶來營收端的助益。此外，我們也因應成本壓力而調漲價格，特別是在浮筒船與鋁製釣魚產品方面。

Dealer pipeline inventories ended the quarter at 27.5 weeks of boats on hand measured on a trailing 12-month retail basis, which is right in line with prior year levels and demonstrates our ongoing discipline over pipeline management. We believe that our pipeline levels are appropriate at this point in time in the Marine selling season. For the year, we are planning for the weeks of inventory on hand at year-end to be slightly lower than year-end 2017 levels and are assuming retail unit growth rates will outpace wholesale performance, primarily related to lower stocking levels of U.S. imported boats by Canadian dealers due to tariffs. We expect full year changes in wholesale and retail unit growth to be consistent with year-to-date trends.

經銷商管道庫存於本季末為 27.5 週的現有船艇（以過去 12 個月零售為基礎衡量），與去年同期水準相當一致，並展現我們在管道管理上的持續紀律。我們認為，在目前海事（Marine）銷售旺季的此一時間點，我們的管道水位是適當的。就全年而言，我們規劃年末的現有庫存週數將略低於 2017 年年末水準，並假設零售單位成長率將超越批發表現，主要係因關稅導致加拿大經銷商降低美國進口船艇的備貨水位。我們預期全年批發與零售單位成長的變化將與年初至今的趨勢一致。

The boat segment's adjusted operating earnings for the quarter were $16.3 million, 65% above Q3 2017 levels, resulting from higher sales and a favorable impact from changes in product mix. For the third quarter, adjusted operating margins were 5.2%, which is 180 basis points higher than Q3 of 2017. Year-to-date, our adjusted operating margins of 6.7% were up 60 basis points over 2017.

本季船艇事業部調整後營業利益為 1,630 萬美元，較 2017 年第三季高出 65%，主要來自銷售增加以及產品組合變動帶來的有利影響。第三季調整後營業利益率為 5.2%，較 2017 年第三季高出 180 個基點。年初至今，我們調整後營業利益率 6.7%，較 2017 年提高 60 個基點。

Shifting to our Fitness segment. Sales for the third quarter increased by 4.6%. Global strength sales continue to grow as demand for these products increased, reflecting our well-positioned product offering and evolving exerciser preferences.

接著談我們的健身（Fitness）事業部。第三季銷售成長 4.6%。全球肌力訓練產品銷售持續成長，因這些產品需求增加，反映我們具競爭力的產品組合定位，以及運動者偏好的演變。

Sales of commercial cardio equipment increased slightly in the quarter, resulting from gains in Life Fitness product sales, partially offset by continued softness in Cybex sales.

本季商用有氧設備銷售小幅增加，主要來自 Life Fitness 產品銷售成長，部分被 Cybex 銷售持續疲弱所抵銷。

Adjusted operating margins for the quarter were at 4.7%, which was 610 basis points lower than a year ago.

本季調整後營業利益率為 4.7%，較一年前低 610 個基點。

This margin reduction was caused by a number of factors, some of which have been affecting comparisons for several quarters. First, the business continues to be affected by higher freight costs and unfavorable changes in sales mix as it navigates through challenges related to the recent product launches of new cardio products. In addition, the business incurred charges in the quarter, resulting from inventory cost adjustments, primarily related to product transitions. Finally, Fitness continue to face headwinds from cost inflation and manufacturing inefficiencies.

此一毛利率下滑由多項因素造成，其中部分因素已影響比較數季。首先，業務持續受到較高運費成本與不利的銷售組合變動影響，因其正因應近期新有氧產品上市所帶來的挑戰。此外，本季因存貨成本調整而產生費用，主要與產品轉換相關。最後，健身事業仍面臨成本通膨與製造效率不彰的逆風。

Next, I will discuss the impact that foreign currency is having on our performance. In the third quarter, sales comparisons were negatively affected by approximately 1%, and operating earnings comparisons were negatively affected by approximately $6 million, which was slightly more than our plan. Our estimates for the full year are slightly less favorable than previous expectations. We are still expecting favorable impacts on consolidated sales of less than 1% and now project a minimal impact on operating earnings. These estimates for 2018 assume that foreign exchange rates remain consistent with current rates.

接下來，我將說明外幣對我們績效的影響。第三季，銷售比較約受到 1% 的負面影響，營業利益比較約受到 600 萬美元的負面影響，略高於我們的規劃。我們對全年之估計較先前預期略為不利。我們仍預期對合併銷售的有利影響低於 1%，並且目前預估對營業利益的影響極小。上述 2018 年估計假設外匯匯率維持與目前水準一致。

Our GAAP results include the impact of several items, which have been excluded from our as-adjusted results. We recorded restructuring exit integration charges in the quarter totaling $17.7 million, mostly related to additional wind down costs associated with Sea Ray, sport yacht and yacht operations and an impairment of the Cybex tradename, which was required due to declines in sales versus our previous expectations, including decisions to co-brand the Cybex Arc Trainer product line as Life Fitness. We also incurred operating losses of $11.9 million related to the Sea Ray sport yacht and yacht business in excess of restructuring charges. Our wind down of operations is mostly complete, but some incremental charges may be recorded in the fourth quarter.

我們的 GAAP 結果包含若干項目的影響，這些項目已自我們的調整後結果中排除。本季我們認列重組、退出與整合費用合計 1,770 萬美元，主要與 Sea Ray、運動遊艇與遊艇業務的額外收尾成本，以及 Cybex 商標減損有關；該減損係因銷售較先前預期下滑而必須認列，其中包括決定將 Cybex Arc Trainer 產品線以 Life Fitness 共同品牌方式銷售。此外，我們亦承擔與 Sea Ray 運動遊艇與遊艇業務相關、超出重組費用之外的營業損失 1,190 萬美元。我們的收尾作業大致完成，但第四季可能仍會認列部分增量費用。

In connection with the Power Products acquisitions, we incurred $15.6 million of transaction-related costs and $9.4 million of purchase accounting costs and intangible amortization.

就 Power Products 收購案而言，我們發生 1,560 萬美元的交易相關成本，以及 940 萬美元的購買會計成本與無形資產攤銷。

Finally, we incurred costs related to the Fitness business, including separation costs and other nonrecurring charges. Our third quarter book tax rate as adjusted was 21%, which is consistent with the year-to-date rate. Our tax rate continues to be lower than last year due mostly to the impact of tax reform. Our updated estimated effective book tax rate for the full year, as adjusted, is also approximately 21%, which is based on tax guidance to date and is also subject to change as additional regulations and clarifying interpretations of the new tax law become known. Our estimated cash tax rate for 2018 is still expected to be in the low single-digit percent range, reflecting the favorable impact of a tax refund along with deductions from planned capital expenditures and increased pension contributions.

最後，我們亦發生與健身事業相關的成本，包括分拆成本及其他一次性費用。我們第三季調整後帳面稅率為 21%，與年初至今稅率一致。我們的稅率持續低於去年，主要因稅改影響。我們更新後的全年調整後估計有效帳面稅率亦約為 21%，係依目前稅務指引為基礎，且隨著新稅法的更多法規與釐清性解釋出爐，仍可能變動。我們對 2018 年的估計現金稅率仍預期落在低個位數百分比區間，反映退稅的有利影響，以及計畫性資本支出與增加退休金提撥所帶來的扣除額。

Turning to a review of our cash flow statement. For the first 9 months of 2018, cash provided by operating activities was $234 million, which was $21 million less than last year, primarily due to planned increases in pension contributions, partially offset by favorable comparisons for tax payments and working capital changes.

接著回顧我們的現金流量表。2018 年前 9 個月，營運活動提供之現金為 2.34 億美元，較去年少 2,100 萬美元，主要因計畫性增加退休金提撥，部分被稅款支付與營運資金變動的有利比較所抵銷。

Capital spending was $125 million, which included investments in new products as well as capacity expansion initiatives, mostly in our Marine segments.

資本支出為 1.25 億美元，包含新產品投資以及產能擴張計畫，主要集中於我們的海事（Marine）事業部。

Free cash flow for the first 3 quarters of 2018 was $149 million, up $10 million versus 2017. The cost associated with the Fitness separation as well as the Sea Ray's sport yacht and yacht operations have been excluded from free cash flow as we will be treating those items consistent with our as-adjusted earnings metrics.

2018 年前三季自由現金流為 1.49 億美元，較 2017 年增加 1,000 萬美元。與健身事業分拆相關的成本，以及 Sea Ray 運動遊艇與遊艇業務的成本，已自自由現金流中排除，因我們將以與調整後盈餘指標一致的方式處理這些項目。

Let me conclude with comments on certain items that will impact our P&L and cash flow for 2018, focusing on estimates that have changed since the last quarter. We have updated our estimate of depreciation and amortization for the impact of the Power Products acquisition. We continue to exclude -- execute against our capital strategy and debt refinancing plans that we discussed as part of the Power Products acquisition, with no material deviations thus far.

最後，我將就 2018 年將影響我們損益表與現金流的若干項目作結語，並聚焦於自上季以來已變動的估計。我們已更新折舊與攤銷的估計，以反映 Power Products 收購案的影響。我們持續執行我們在 Power Products 收購案中所討論的資本策略與債務再融資計畫，迄今並無重大偏離。

Estimated net interest expense remains between $40 million and $45 million, as we progress through our refinancing activities related to the purchase, which include the retail financing offering completed earlier this month. As I discussed a few slides ago, our estimated book tax rate is approximately 21% for the year, down slightly from our estimate on the last call.

隨著我們推進與收購相關的再融資活動（包括本月稍早完成的零售融資方案），估計淨利息費用仍介於 4,000 萬至 4,500 萬美元之間。如我在幾張投影片前所述，我們估計全年帳面稅率約為 21%，較上次電話會議的估計略為下降。

We have raised our guidance for free cash flow and now expect free cash flow to exceed $220 million for the year, which includes improvements in anticipating working capital changes and capital expenditure levels. Our business units remain focused on generating strong free cash flow, which will allow us to continue to fund future investments in growth such as plant capacity investments and successfully implement our capital strategy. Excluding the after-tax impact of pension contributions, free cash flow would exceed $320 million.

我們已上調自由現金流指引，現預期全年自由現金流將超過 2.2 億美元，其中包含對營運資金變動與資本支出水準的更佳預估所帶來的改善。各事業單位仍專注於創造強勁自由現金流，使我們得以持續投入未來成長投資（如廠房產能投資），並成功推動我們的資本策略。若排除退休金提撥的稅後影響，自由現金流將超過 3.2 億美元。

We have made total contributions of $160 million for the year, including $125 million of pension contributions in the third quarter, which is consistent with our previous guidance. Accelerated contributions lowered our after-tax funding costs of exiting the related plants by over $20 million. There is a residual funding requirement of the $30 million in pretax funding to fully exit the plants, which we intend to complete in 2019.

本年度我們合計提撥 1.6 億美元，其中第三季退休金提撥 1.25 億美元，與先前指引一致。加速提撥使我們退出相關廠房的稅後資金成本降低逾 2,000 萬美元。為完全退出這些廠房，仍有 3,000 萬美元的稅前資金需求餘額，我們預計於 2019 年完成。

During the quarter, we repurchased 5 million of shares, bringing total share repurchases in 2018 to $75 million. As discussed on our product -- Power Products call, we have suspended share repurchases until the second half of 2019, as we focus on debt retirement and complete the Fitness separation.

本季我們回購 500 萬股，使 2018 年累計庫藏股回購金額達 7,500 萬美元。如同我們在產品—Power Products 電話會議中所討論的，我們已暫停股票回購至 2019 年下半年，以專注於償還債務並完成健身事業分拆。

Finally, last week for the sixth consecutive year, we increased our quarterly dividend approximately 10% to $0.21 a share. 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.

最後，上週我們連續第六年將季度股利提高約 10% 至每股 0.21 美元。此舉符合我們資本策略中隨盈餘與現金流改善而提高股利的目標，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.

我現在把電話交回給 Mark，請他繼續說明我們的展望評論。

Thanks, Bill. With 3 quarters completed, 2018 is shaping up to be another year of record earnings, led by the robust marine revenue and margin growth, with excellent cash flow generation.

謝謝你，Bill。在完成了 3 個季度之後，2018 年正逐步成為另一個創紀錄獲利的年度，主要由強勁的海事營收與毛利率成長所帶動，並且具備優異的現金流創造能力。

In our combined marine business, we expect top line performance to continue benefiting from a steady global marine market; increases in average selling price, including the benefits from customer migration to higher horsepower engines and boats with increased content; the market share gains resulting from the unprecedented demand; and the acceptance of our new outboard products and our growing parts and accessory business.

在我們整合後的海事業務中，我們預期營收表現將持續受惠於穩健的全球海事市場；平均售價的提升（包含客戶轉向更高馬力引擎與更高配置含量船艇所帶來的效益）；前所未有需求所帶動的市占率提升；以及我們新款舷外機產品的市場接受度與持續成長的零件與配件業務。

For the full year, we anticipate solid improvement in both gross and operating margins in our Marine business, given ongoing benefit from the new products and acquisition with pricing actions mostly offsetting the impacts related to cost inflation and tariffs.

就全年而言，鑑於新產品與併購帶來的持續效益，且定價措施大多可抵銷成本通膨與關稅相關影響，我們預期海事業務的毛利率與營業利益率都將有穩健改善。

In the Fitness segment, we're now planning for full year revenues to be consistent with 2017 due in part to the anticipated fourth quarter declines in sales to certain value-oriented health clubs and international markets, following a strong first 9 months along with the continued weakness in Cybex sales. We are projecting our gross margins to be consistent with our year-to-date performance. We're also increasing and narrowing the guidance range for our full year expectations of our diluted EPS as adjusted to $4.65 to $4.70, with consolidated revenue growth of approximately 9%.

在健身（Fitness）事業部方面，我們目前規劃全年營收將與 2017 年持平，部分原因是預期第四季對某些偏重性價比的健康俱樂部與國際市場的銷售將下滑；此前前 9 個月表現強勁，同時 Cybex 銷售持續疲弱。我們預估毛利率將與年初至今的表現一致。我們也上調並收斂全年調整後稀釋每股盈餘（diluted EPS as adjusted）指引區間至 4.65 至 4.70 美元，合併營收成長約 9%。

Each takes into account the expected strong top line growth and operating leverage momentum generated by our marine business, the net benefit from the Power Products acquisition, our unchanged estimated impact of tariffs on our remaining 2018 performance and the Fitness business performance in line with the year-to-date trends. In all, this is projected to be another successful year for Brunswick.

上述各項均已納入以下因素：海事業務預期強勁的營收成長與營運槓桿動能、Power Products 併購帶來的淨效益、我們對 2018 年剩餘期間關稅影響的估計維持不變，以及健身業務表現符合年初至今的趨勢。整體而言，這預期將是 Brunswick 另一個成功的年度。

Now turning to the discussion on tariffs. Despite additional tariffs being implemented since our last earnings call, our anticipated 2018 net earnings impact has not changed and is estimated at $10 million to $15 million. Tariffs on Marine Engine segment imports from China account for 2/3 of this impact, while the remaining related -- relates to exports of U.S. manufactured boats into Canada and the EU. We have applied for an exemption from the U.S. government on the first wave of the China tariffs on our 40- to 60-horsepower engines and await the government's decision.

接著談關稅議題。儘管自上次財報電話會議以來又實施了額外關稅，我們對 2018 年淨利的預期影響並未改變，估計為 1,000 萬至 1,500 萬美元。其中，來自中國進口的海事引擎事業部關稅約占影響的 2/3，其餘則與美國製造船艇出口至加拿大與歐盟相關。我們已就第一波中國關稅中針對 40 至 60 馬力引擎向美國政府申請豁免，並等待政府決定。

Moving to 2019, we currently estimate that the potential total tariff cost for the full year could be between $60 million and $70 million, given the tariffs enacted as of today, excluding potential indirect exposure through our supply chain partners, which we believe is a manageable risk. As with 2018, the large majority of this impact relates to our Marine Engine segment and stems from our 40- to 60-horsepower engines in parts and accessories.

展望 2019 年，我們目前估計在截至今日已生效的關稅情境下，全年潛在關稅總成本可能介於 6,000 萬至 7,000 萬美元；此估計不含透過供應鏈合作夥伴所產生的間接曝險，我們認為該風險可控。與 2018 年相同，影響的絕大部分與海事引擎事業部相關，主要來自 40 至 60 馬力引擎以及零件與配件。

It also assumes a full year impact of the first 3 waves of Section 301 China tariffs with a rate increase on wave 3 from 10% to 25% as of January 1, 2019. This does not include the potential wave 4 of China tariffs that have been threatened, but not implemented, with wave 4 potentially impacting net earnings, primarily, again, through our Mercury and Fitness businesses by mid-single-digit millions, if enacted.

此亦假設《301 條款》（Section 301）對中國關稅的前三波在 2019 年全年生效，且第三波稅率自 2019 年 1 月 1 日起由 10% 提高至 25%。此不包含已被威脅但尚未實施的第四波中國關稅；若第四波實施，可能使淨利受到影響，主要仍將透過我們的 Mercury 與健身業務，影響金額約為數百萬美元（中個位數百萬）。

On the boat side, we are assuming the removal of the Section 232 retaliatory tariffs on imports of U.S.-produced product into Canada and the EU, and that normal levels of wholesale demand return some time in 2019. However, offsetting this benefit is likely higher commodity cost, resulting from tariffs enacted against foreign suppliers. We do not directly source foreign aluminum or steel, but would be affected to the extent that the tariffs cause domestic pricing to continue to be elevated.

在船艇方面，我們假設《232 條款》（Section 232）報復性關稅將被取消，即加拿大與歐盟對進口美國生產產品的報復性關稅移除，且批發需求在 2019 年某個時間點回到正常水準。然而，抵銷此項利多的可能是更高的原物料成本，係由對外國供應商所施加的關稅所致。我們並未直接採購外國鋁材或鋼材，但若關稅導致國內價格持續處於高檔，我們仍將受到影響。

We were able to lock in certain 2018 commodity costs prior to significant cost increases, but would not have similar protection in 2019.

我們在 2018 年得以在成本大幅上升前鎖定部分原物料成本，但在 2019 年將不會有類似的保護。

And lastly, our Fitness business has been affected by higher domestic steel cost, resulting from tariffs on foreign-produced product and is facing a slight headwind related to the retaliatory tariffs on Fitness equipment sold into China, but is not impacted by waves 1 through 3 of the Section 301 China tariffs.

最後，我們的健身業務已受到國內鋼材成本上升的影響（源自對外國製產品的關稅），同時也面臨因對銷往中國的健身器材所課徵報復性關稅而帶來的些微逆風，但不受《301 條款》對中國關稅第一至第三波的影響。

Overall, we're developing plans to offset about half of the tariff cost in 2019, resulting in a net $30 million to $35 million negative impact to full year earnings. We will use the combination of price increases, supply chain management and supplier negotiations and other cost efficiencies to offset the gross tariff impact, and we will continue to look for additional ways to mitigate the tariff effects as we move throughout the year. We will also continue to leverage our government relations team to ensure our policymakers understand the difficulties being caused by these tariffs.

整體而言，我們正在制定計畫以在 2019 年抵銷約一半的關稅成本，使全年獲利淨影響為負 3,000 萬至 3,500 萬美元。我們將透過調漲價格、供應鏈管理與供應商談判，以及其他成本效率措施的組合，來抵銷關稅的總體影響；並將在全年推進過程中持續尋找更多方式以減輕關稅效應。我們也將持續運用政府關係團隊，確保政策制定者了解這些關稅所造成的困難。

Again, as stated previously, there are many moving pieces here, and this estimate is based on the continued revision and refinement as we move into 2019.

再次如先前所述，這裡有許多變動因素，而此估計將在我們邁入 2019 年時持續修訂與精煉。

Turning to the outlook for our segments. We anticipate full year revenue growth of approximately 14% in our Marine Engine segment, including 4% contribution from acquisitions. This reflects the strong revenue growth and margin expansion in the fourth quarter. We are raising our margin expectations for this business and now expect our operating margin improvement of between 30 and 50 basis points for the full year, despite tariffs and other cost inflation, the first half headwinds resulting from the new engine launch and the warehouse management system implementation. This is a testament to the ongoing strength of the Mercury portfolio, particularly its outboard engine and P&A businesses and fortifies our view that this segment will finish with a sound fourth quarter and lead into 2018 -- 2019 with substantial momentum.

接著談各事業部展望。我們預期海事引擎事業部全年營收成長約 14%，其中包含併購帶來的 4% 貢獻。這反映第四季強勁的營收成長與利潤率擴張。我們上調該業務的利潤率預期，現在預估全年營業利益率將改善 30 至 50 個基點，儘管面臨關稅與其他成本通膨、上半年因新引擎上市與倉儲管理系統導入所帶來的逆風。這證明 Mercury 產品組合持續強勁，尤其是其舷外機引擎以及零件與配件（P&A）業務，也強化我們的看法：該事業部將以穩健的第四季作結，並以顯著動能銜接 2018—2019 年。

Moving to the boat segment. We're now targeting the annual revenue growth for 2018 at rates slightly below our year-to-date performance, a slight improvement from our previous call. We expect growth in all 3 primary categories, led by increases in average selling prices, resulting in part from consumers adding more content and larger engines on to their boats. We are also anticipating solid improvement in operating margins, which for the full year, should be nearing the lower end of our 2020 target range of 7% to 8%. We remain confident in the global marine market and believe that our boat business will continue to succeed behind the strength of many of the industry's most recognizable brands, our product leadership and our improved operating performance.

接著看船艇事業部。我們目前將 2018 年全年營收成長目標設定為略低於年初至今的表現，較我們上次電話會議略有改善。我們預期三大主要類別皆將成長，主要由平均售價上升所帶動，部分原因是消費者在船艇上加購更多配置內容與更大引擎。我們也預期營業利益率將有穩健改善，全年應接近我們 2020 年目標區間 7% 至 8% 的下緣。我們對全球海事市場仍具信心，並相信在多個業界最具辨識度品牌的強勁支撐、我們的產品領導力以及改善後的營運表現帶動下，船艇業務將持續成功。

In the Fitness segment, we now anticipate flat revenue growth versus 2017 and gross margin performance that's similar to the year-to-date levels, which are both below our previous expectations. We are benefiting from recent cardio product launches, as the uptake rate on premium connectable consoles continues to improve, which we believe will benefit refresh activity and enable the business to execute against its digital strategy.

在健身事業部方面，我們目前預期相較 2017 年營收成長持平，毛利率表現與年初至今水準相近；兩者皆低於我們先前的預期。我們正受惠於近期心肺產品上市，高階可連網主控台的採用率持續改善；我們相信這將有助於設備汰換更新活動，並使該業務得以落實其數位策略。

Year-to-date sales to Planet Fitness are slightly higher than originally projected during the last earnings call, resulting from our continued strong relationship and product leadership. However, our plan anticipates declines in the fourth quarter, which will lead to an overall decline in full year sales. Going forward, we remain confident that we are well positioned to be the leading partner to support their goals for growth, technology development and improve club operator and user experience.

年初至今對 Planet Fitness 的銷售略高於上次財報電話會議時的原先預估，這得益於我們持續穩固的合作關係與產品領導地位。然而，我們的計畫預期第四季將下滑，導致全年銷售整體下降。展望未來，我們仍有信心自身具備良好定位，能成為其首選合作夥伴，支持其成長、技術開發目標，並改善俱樂部營運者與使用者體驗。

Before we close, I wanted to provide an update on the status of the Fitness separation process. To start, I want to reinforce that Brunswick Board of Directors remain focused on separating the Fitness business from their portfolio in an expeditious and orderly manner, with an objective of optimizing shareholder value.

在結束之前，我想就健身業務分拆流程的進度提供最新資訊。首先，我想再次強調，Brunswick 董事會仍專注於以迅速且有序的方式將健身業務自其投資組合中分離，目標是最佳化股東價值。

In an effort to attain maximum return on the separation of the Fitness business and to underscore the board's commitment to execute the separation, Brunswick's board has created a management board, consisting of 2 current Brunswick outside directors who will directly oversee the Fitness management team and drive completion of the separation in a timely manner. David Everitt and David Singer have deep management, operational and financial experience across consumer products and manufacturing industries, and they will work closely with the Life Fitness management team to ensure that our Fitness business is best positioned to develop and execute its plans, grow into a strong stand-alone company and create long-term shareholder value.

為了在健身業務分拆中取得最大回報，並強調董事會致力於執行分拆，Brunswick 董事會已成立一個管理委員會，由 2 位現任 Brunswick 外部董事組成，將直接監督健身事業管理團隊，並推動分拆在適當時程內完成。David Everitt 與 David Singer 在消費性產品與製造業領域具備深厚的管理、營運與財務經驗，並將與 Life Fitness 管理團隊密切合作，確保我們的健身業務能以最佳狀態制定並執行其計畫，成長為一家強健的獨立公司，並創造長期股東價值。

The creation of the management board also allows the Brunswick management to focus its attention on the development and execution of the marine strategy, which we and the board believe will provide attractive return opportunities for shareholders.

成立管理委員會也使 Brunswick 管理層得以將注意力集中於海事策略的制定與執行；我們與董事會相信，該策略將為股東帶來具吸引力的報酬機會。

An immediate action item already underway is for the management board and the Fitness management team to undergo a concise strategic review of the business to evaluate what near-term steps will be necessary to maximize the value of the business and to develop an operating plan to implement these changes. In terms of the process, we anticipate filing the Form 10 in the first half of November. Our board remains committed to completing the separation by the end of the first quarter of 2019 or as promptly thereafter as practical within a time frame that maximizes the value to our shareholders. A spin remains was one of the primary options available to us, but we're also working with our advisors to evaluate other separation options that optimize shareholder value, including the outright sale of the business. We'll keep you posted on our progress to complete this separation.

目前已立即展開的一項行動，是由管理委員會與健身事業管理團隊對該業務進行精簡的策略檢視，以評估為最大化業務價值在短期內需要採取哪些步驟，並制定營運計畫以落實這些變更。就流程而言，我們預期在 11 月上半月提交 Form 10。我們的董事會仍致力於在 2019 年第一季末前完成分拆，或在可行情況下於其後儘速完成，並以能為股東創造最大價值的時程為前提。分拆（spin）仍是我們可採行的主要選項之一，但我們也正與顧問合作評估其他可優化股東價值的分離方案，包括直接出售該業務。我們將持續向各位更新完成此分拆的進度。

In closing, 2018 is shaping up to be another strong year. The third quarter provided the first look at the tangible benefits resulting from our investment activities in the marine business. Led by strong revenue growth and margin expansion throughout the marine business, we anticipate delivering excellent cash flow and record EPS, which will be our ninth consecutive year of EPS growth.

最後，2018 年看來將是另一個強勁的年度。第三季讓我們首次看到在海事業務投資活動所帶來的具體效益。在海事業務全面強勁的營收成長與毛利率擴張帶動下，我們預期將交出優異的現金流與創紀錄的每股盈餘（EPS），這也將是我們連續第九年 EPS 成長。

As we highlighted on this call, we believe Brunswick carries substantial momentum into 2019, resulting from robust demand, potential market share gains and increased leverage from our new outboard engine lineup, a strong and steady P&A business bolstered by the Power Products acquisition, a more focused and agile Boat business and a portfolio that will solely focus on the marine industry upon the Fitness separation. We believe this uniquely positions us to continue to grow earnings even with potential headwinds from tariffs and inflation.

如同我們在本次電話會議中所強調的，我們認為 Brunswick 在 2019 年具備可觀的動能，來自強勁需求、潛在市占提升，以及我們新一代舷外機產品線帶來的槓桿效益；在 Power Products 併購加持下更為強健且穩健的 P&A 業務；更聚焦且更敏捷的船艇業務；以及在健身事業分拆後將專注於海事產業的投資組合。我們相信，這使我們即便面臨關稅與通膨等潛在逆風，仍能持續推動獲利成長。

I'm excited about the business moving forward. Our management team and our 15,000 dedicated Brunswick colleagues are committed to finishing this year up strong in delivering and executing against our growth strategy in a continued effort to deliver value to our shareholders.

我對未來的業務發展感到振奮。我們的管理團隊以及 15,000 位敬業的 Brunswick 同仁，將致力於以強勁表現完成今年，並持續交付與執行我們的成長策略，努力為股東創造價值。

And with that, I'd be happy to take your questions.

接下來，我很樂意回答各位的問題。

(Operator Instructions) Our first question comes from the line of Michael Swartz with SunTrust.

(接線員指示) 我們的第一個問題來自 SunTrust 的 Michael Swartz。

Just wanted to focus on the engine business, and have a longer-term-oriented question. As you obviously have started really ramping up production deliveries of these new outboard engines and then with the contribution from the Power Products acquisition, I was just trying to get a sense of how you look at the longer-term margin profile of that business. Is this something that can carry margins in the 20%-plus range longer term?

我想聚焦在引擎業務，並提出一個較偏長期的問題。由於你們顯然已開始大幅提升這些新款舷外機的產量與交付，再加上 Power Products 併購帶來的貢獻，我想了解你們如何看待該業務的長期利潤率輪廓。長期而言，這是否有機會維持在 20% 以上的利潤率水準？

Yes, Michael. This is Bill. I'm not sure we're ready to put a long-term target on the business, but when you take a look at what we've done to reset the cost position of the outboard product lineup along with the margin profile of the P&A business that was bolstered by the acquisition of Power Products, I believe there is potential to continue to act, expand margins into the foreseeable future. There's additional margin opportunity there.

是的，Michael。我是 Bill。我不確定我們是否已準備好為該業務提出一個長期目標，但當你看看我們為重設舷外機產品線成本結構所做的工作，再加上因併購 Power Products 而強化的 P&A 業務利潤率輪廓，我認為在可預見的未來仍有持續擴大利潤率的潛力。那裡還有額外的利潤率提升空間。

And then second question is just -- and I think Mark had touched on this in his remarks, but just with capacity on the engine side, did I hear you say you need to expand capacity? I may have missed that. And if that was correct, are there incremental costs related to that we should be thinking about in '19?

第二個問題是——我想 Mark 在他的談話中有提到——就引擎端的產能而言，我是否聽到你說需要擴充產能？我可能漏聽了。如果是正確的話，2019 年我們是否需要考量與此相關的增量成本？

Well, yes. We will be expanding. Some of that, Michael, will go through the supply base and tooling and other kinds of things like that, but that will all be within the capital plan, and that capital plan is virtually within the guidance that we've given in the past. So I wouldn't expect that you'd see any deterioration to the business.

嗯，是的。我們將會擴充。其中一部分，Michael，會透過供應鏈基礎、模具治具（tooling）以及其他類似事項來進行，但這些都會納入資本計畫之內，而該資本計畫基本上也在我們過去所提供的指引範圍內。因此我不預期你會看到業務有任何惡化。

And I would say, Michael, that as we've added in new machines and new capacity, it generally comes online at a higher efficiency than some of the older capacity that we're replacing. So there's cost-reduction opportunities there, and we've generally been able to absorb the capacity fairly quickly because the demand has been so strong. So net-net, there's certainly some additional costs that could get added in terms of depreciation and things like that, but there's also cost reduction that follows along with it. And the product that we're building capacity for, carries with it a fairly attractive margin profile.

另外我會說，Michael，當我們新增新機台與新產能時，通常其上線後的效率會高於我們正在汰換的一些舊產能。因此那裡存在降本機會，而且由於需求一直非常強勁，我們通常能相當快速地吸收新增產能。所以整體而言，確實可能會在折舊等方面增加一些額外成本，但同時也會伴隨成本下降。而我們正在為其擴充產能的產品，本身也具有相當具吸引力的利潤率輪廓。

Our next question comes from James Hardiman with Wedbush Securities.

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

So I have a number of questions on the quarter and on the outlook, but I guess, first, Mark, I don't know if this is the last time we'll be talking to you on earnings call or in Miami, but maybe to the extent that you feel comfortable, talk about the decision to step down, time frame, how long has this been in the works. I'm assuming that certainly when David was promoted back in May that this was something that was on the table. Maybe talk about that. Hopefully, this wasn't a decision you made Saturday night, watching our House day.

我對本季以及展望有不少問題，但我想先問，Mark，我不確定這是否會是我們最後一次在法說電話或在邁阿密與你對談；但在你覺得方便的範圍內，能否談談你決定卸任的原因、時間安排，以及這件事籌劃了多久。我猜當 David 在 5 月升任時，這應該就已在討論之中。也請談談這部分。希望這不是你在週六晚上看完我們的 House day 後才做的決定。

No, I was contemplating other things, so that's one thing. If you go back, I mean, you can start all the way. I mean, one of the first things the CEO does when he comes in the job is to start thinking about succession because it's a very, very critical and important element. And when I started the stuff coming together really was back in the March, April time frame when we were announcing the spin because it was getting clearer and clearer with the spin that fundamentally, we're going to have a marine company, and it's the sole entity of the portfolio going forward. And so the dialogue I had and had with the board was basically, we get to a February time frame of the Miami Boat Show and typically, in 2019, we'd be laying out the next 3 years. And my view was that we were at a real inflection point and the person who was going to lead the Marine business going forward for the next couple of years should really be someone who's there and involved and really driving that process rather than worrying about some other change happening down the road. And when you look at the third quarter results and you look at the strategy and things we've got in place, and fundamentally, David is a very known entity. We worked together 10 years. He's been in the corporate office for 1.5 years now as CTO, interacting with all the rest of the peers and staff. He's been running the boat business for the last 6 months and will [continue] through the end of the year. So fundamentally, it can be a very, very orderly transition. I think David is a great guy to take that strategy going forward, and I think it's just a natural place for me to step off and leave the management here in great hands.

不，我當時在思考其他事情，所以這是一點。如果你回頭看，我是說，你可以從很早開始談起。我的意思是，CEO 上任後最先做的事情之一，就是開始思考接班規劃，因為那是非常、非常關鍵且重要的要素。而我開始把這些事情整合起來，真正是在 3、4 月左右、我們宣布分拆的時候，因為隨著分拆愈來愈明朗，從根本上來說，我們未來將成為一家海事公司，而且它將是投資組合中唯一的事業主體。因此我與董事會的對話基本上是：我們會走到 2 月的邁阿密船展時間點，而通常在 2019 年，我們會在那時提出未來 3 年的規劃。我的看法是，我們正處於一個真正的轉折點，而未來幾年要帶領海事業務前進的人，應該是能在現場、深度參與並真正推動該流程的人，而不是還要擔心之後某個時間點會發生其他變動。而當你看第三季的結果、看我們的策略以及已建立的各項布局，從根本上來說，David 是一位非常熟悉且眾所周知的人選。我們合作了 10 年。他在過去 1.5 年以 CTO 身分在總部辦公室，與其他同儕與團隊互動。他在過去 6 個月一直在負責船艇業務，並將[持續]到年底。因此從根本上來說，這可以是一個非常、非常有秩序的交接。我認為 David 是推動該策略向前的絕佳人選，而我也認為，對我而言，這正是適合退下來、把管理交到非常可靠的人手中的自然時點。

That's helpful. It's certainly been a pleasure, and hopefully, we'll get a chance to see you around. So a couple of questions...

這很有幫助。這確實一直很愉快，也希望之後我們有機會再見到你。那有幾個問題……

James, you may have to put up with me at Miami just as -- but I'll be walking around as a shareholder then, so.

James，你在邁阿密可能也得忍受我，就像——不過到時我會以股東的身分到處走走，所以。

Awesome, awesome. That sounds great. So a couple of questions on the business. I guess just real quick on the tariffs. You're assuming retaliatory tariffs are going away. Why is that a good assumption at this point? And how big this -- what's the number if they don't go away? How should we think about the offset?

太棒了，太棒了。聽起來很不錯。那我有幾個關於業務的問題。我想先很快問一下關稅。你們假設報復性關稅會取消。在目前這個時間點，為什麼這是個合理的假設？如果它們不取消，這——數字會是多少？我們應該如何看待抵銷因素？

Well, let me do the first part, and Bill can do the second. The first part being why we made the assumption? What we've really made the assumption are around EU and Canada and the expectation with the NAFTA replacement and the stuff that our assumption is that the Canada thing will get worked out as part of that agreement and also the belief that the things between us and the EU will get worked out. The European one is very small because of the fact -- most of the product we're selling in Europe, boats-wise, are boats that are manufactured in Europe. So our belief is those are probably valid assumptions on a go-forward. To the contrary, we haven't made any assumptions of the China tariffs going away.

好，我先回答第一部分，Bill 可以回答第二部分。第一部分是為什麼我們做這個假設？我們真正做的假設主要是圍繞歐盟和加拿大，以及隨著 NAFTA 替代協議的預期；我們的假設是，加拿大的問題會作為該協議的一部分得到解決，同時也相信我們與歐盟之間的事情會談妥。歐洲那一塊影響非常小，因為——我們在歐洲銷售的大多數船艇產品，都是在歐洲製造的船。所以我們相信，往後看這些應該都是合理的假設。相反地，我們並沒有假設中國關稅會取消。

Got it. Yes, go ahead.

了解。好，你請。

Embedded in our '18 guidance, about 1/3 of that is attributable to some of the restocking activity that's being deferred by the dealers in the second half of this year. Our belief is that some of that is already kind of, I would say, a pre-running what would have happened in '19 if tariffs would remain in place. So it's a pretty manageable risk going forward if they're not removed. And we also believe that T orders right now are just trying to figure out what the rules are. And if they understand that the tariffs are in place permanently, they'll adjust accordingly and start to restock and sell, but they're very apprehensive to start stocking boats in advance of kind of understanding what the long-term landscape is going to be.

在我們 2018 年的指引中，大約有三分之一可歸因於經銷商在今年下半年延後進行的一些補庫存活動。我們認為，其中一部分其實已經有點——我會說，是提前反映了如果關稅在 2019 年仍然存在，本來會發生的情況。因此，如果關稅未被取消，往後看這是一個相當可控的風險。我們也相信，T 的訂單目前只是想弄清楚規則是什麼。如果他們理解關稅將永久存在，他們會相應調整並開始補庫存與銷售；但在尚未了解長期格局會是什麼之前，他們非常不願意提前備貨船艇。

Is it safe to say the biggest risk more so than tariff dollars incentives is demand in Canada to that issue?

可以說最大的風險與其說是關稅金額或激勵，不如說是加拿大那邊的需求問題嗎？

Well, demand in Canada has actually been very strong. I think demand in...

嗯，加拿大的需求其實一直非常強勁。我認為需求在……

I guess, dealer demand. I guess, yes, sorry.

我是說，經銷商的需求。嗯，是的，抱歉。

The impact of price on retail demand will probably be the biggest factor moving into next year.

價格對零售需求的影響，可能會是進入明年時最大的因素。

Got it. And then Fitness, real quick here, maybe this inventory cost adjustment, maybe what is that? Why is that happening? How much was that? Maybe walk us through that. And then, the big Fitness top line decline that we're assuming for the fourth quarter, you talked about a decline in value customers. I mean, it doesn't seem like there's any new news from Planet. Maybe walk us through some of that.

了解。另外，關於 Fitness，很快問一下，這個庫存成本調整可能是什麼？為什麼會發生？金額是多少？能否帶我們走一遍？還有，我們對第四季假設的 Fitness 營收大幅下滑，你提到價值型客戶的下滑。我的意思是，看起來 Planet 那邊也沒有什麼新消息。能否也帶我們解釋一下？

Yes, James, I'd say -- I'll address the second one first. If you look at our fourth quarter demand, Planet, on a full year basis, exceeds 10%. They are over-indexed to the fourth quarter. We are assuming that we start to see some meaningful changes in our share in Planet. We haven't really seen that yet in the third quarter, but based upon order rates, feel that, that's going to occur more in the fourth. And when you've got that kind of your business being adjusted down on a share basis significantly, it creates a headwind. So that's probably the largest single item that we're facing that's creating headwinds for the fourth quarter. And then on the inventory side, James, I would say that it's -- at the end of any sort of -- in connection with any product transition, you have some opportunities for there to be mismatches between what you still have to sell and what customers are willing to buy on the preceding basis. We're probably left with a little bit too much of some product that we've chosen to take care of through an excess and obsolete reserve. It's kind of a onetime adjustment that we've taken care off in the fourth quarter -- or third quarter.

是的，James，我會說——我先回答第二個問題。如果你看我們第四季的需求，Planet 以全年來看成長超過 10%。他們在第四季的占比偏高。我們假設我們在 Planet 的市占會開始出現一些顯著變化。第三季我們其實還沒真正看到，但根據下單速度，我們覺得第四季會更明顯。當你的業務在市占層面被大幅下修時，就會形成逆風。所以這大概是我們第四季面臨、造成逆風的最大單一因素。至於庫存面，James，我會說——在任何產品轉換期的尾聲，通常都可能出現你仍需銷售的存貨，與客戶在前一代產品上願意購買的內容之間不匹配的情況。我們可能留下了一點過多的某些產品，因此我們選擇透過提列超額與呆滯存貨準備來處理。這算是一次性的調整，我們已在第四季——或第三季——處理掉了。

Now I'll hop in the queue, but what's the size of that adjustment?

那我接著問一下，這個調整的規模是多少？

It's a low single-digit number.

是低個位數。

Okay. Low single-digit millions?

好的。低個位數的百萬美元？

Millions, yes, correct.

百萬，是的，沒錯。

Our next question comes from the line of Craig Kennison with Baird.

下一個問題來自 Baird 的 Craig Kennison。

Mark, congratulations on a wonderful career, and we'll certainly miss you. James took 5 or 6 of my questions. But I'd like to ask maybe about leadership in the future. You've got a really strong team, not only at the CEO level, of course, but at each of your divisions. Should we anticipate stability in leadership as we look at each division?

Mark，恭喜你有一段精彩的職涯，我們一定會想念你。James 已經問走了我 5、6 個問題。不過我想問一下未來的領導團隊。你們有一個非常強的團隊，不僅是在 CEO 層級，當然也包括各事業部。當我們看各事業部時，是否可以預期領導層會保持穩定？

Yes. When you look at the marine segment, which is really the focus around that, John Pfeifer, as Craig, you know well, will continue running the Mercury. We've got Huw running within the Boat business. When I look across the staff I've got here and the strength we've got in the business, no reason to believe that -- and in fact, we feel very good about the team that's here in the continuity going forward in the marine space.

是的。如果你看海事（marine）事業群，這確實是重點所在；John Pfeifer——Craig 你很熟——會繼續負責 Mercury。船艇業務方面由 Huw 負責。當我看我這裡的管理團隊與我們業務的實力，沒有理由相信會——事實上，我們對目前團隊以及海事領域未來的延續性都非常有信心。

Our next question comes from the line of Joe Altobello with Raymond James.

下一個問題來自 Raymond James 的 Joe Altobello。

I also want to congratulate you, Mark. Wish you good luck in the future. Hopefully, you can see a few more Cubs games than you had in the last few years. So good luck with that. But I want to talk about Power Products. And I think if I recall correctly, the accretion this year net of interest was sort of in the $0.10 to $0.15 range. And I'm thinking, do we double that next year, given on the full year that number of that business? Or do we see additional upside from synergies? And could Power Products offset effectively the incremental tariff that you're calling for, for next year?

我也想恭喜你，Mark。祝你未來一切順利。希望你能比過去幾年多看幾場小熊隊的比賽。祝你如願。不過我想談談 Power Products。如果我沒記錯的話，今年扣除利息後的增厚（accretion）大概在 0.10 到 0.15 美元之間。我在想，明年因為這項業務貢獻完整年度，我們是否會把這個數字翻倍？或者我們會從協同效益看到額外上行空間？另外，Power Products 是否能有效抵銷你們對明年所預期的新增關稅影響？

You must be in my head on this stuff, Joe. Yes, it's fairly close. I'd say that the Power Products -- as we sit around and think about '19 and the tailwinds that are back, not only do we have Power Products, but we also have momentum in the outboard business, which I think we've been able to demonstrate, a, our ability to produce, drop and deliver extremely strong earnings leverage. I'd say that we haven't talked about it, but part of our ability to outperform in the third quarter was influenced a bit by our pricing power and our ability to offset costs for tariffs and things in the outboard business. So we feel very strong about our outlook going into '19. And even though we're facing some tariff headwinds, we've got some things that we've already seeing evidence of in the second half of the year, which give us confidence moving into '19.

Joe，你在這些事情上簡直像在我腦子裡一樣。是的，確實相當接近。我會說，Power Products——當我們坐下來思考2019年以及重新出現的順風時，不僅我們有Power Products，我們在舷外機業務上也有動能；我認為我們已經能夠證明，a，我們具備生產、推出並交付極強獲利槓桿的能力。我會說我們還沒談到，但我們第三季能夠優於預期的部分原因，也受到我們的定價能力，以及在舷外機業務中抵銷關稅等成本的能力所影響。因此，我們對進入2019年的展望感到非常有信心。即使我們面臨一些關稅逆風，我們在今年下半年已經看到一些跡象，讓我們對邁入2019年更有信心。

Okay, that's very helpful. And if I could ask a second one on the Fitness side. You did mention the "full range of separation outcomes" that you're evaluating. Has there been interest in that segment from a buyer or buyers? Because I would assume that you've evaluated the sale before announcing the spin.

好的，這非常有幫助。如果我可以再問第二個，關於Fitness那邊。你確實提到你們正在評估「完整範圍的分拆結果」。那個部門是否已經有買方或多個買方表達興趣？因為我猜在宣布分拆之前，你們應該已經評估過出售的可能性。

Well, we started with spin, obviously, driven by some of the tax-free elements of the transaction. We've had inquiries and basically around the sale. We've queued those, really, Joe, relative to getting the Form 10 out, which we've said will be out there in the first half of November. So there has been interest. But again, in the absence of having all the financial stuff together, we've just kind of queued that up.

嗯，我們一開始當然是以分拆為起點，主要是因為交易中有一些免稅的要素。我們確實收到詢問，基本上是圍繞出售。Joe，我們把那些先排隊處理，優先是把Form 10送出；我們說過會在11月上半月對外發布。所以確實有人感興趣。但同樣地，在還沒有把所有財務資料都整理齊全之前，我們只是先把這件事暫時擱置、排隊等候。

Our next question comes from the line of Eric Wold with B. Riley.

我們的下一個問題來自B. Riley的Eric Wold。

Just a couple of questions. I guess one on the engine side. With the ramp in production around the new engine and demand outstripping supply until or into next year, any risk of seeing demand shift, either temporarily or medium term to other suppliers or to show your relationships are strong enough to push through this? And then any sense of what the kind of the adverse impact to growth in that segment has been this year because you could not meet demand and kind of what it could be possibly into next year?

我有幾個問題。我想先問引擎那邊。隨著新引擎的產能爬坡，而需求在今年甚至延續到明年都超過供給，是否有任何風險會看到需求轉移——不論是暫時或中期——轉向其他供應商？或者你們的客戶關係夠強，足以撐過這段期間？另外，你們是否能大概說明，今年因為無法滿足需求，該部門的成長受到多大不利影響？以及這種情況可能延續到明年會是什麼程度？

Well, we've -- a couple of different pieces to that, Eric. First of all, the -- we've had substantial increases of production. We've said in the low double-digit kind of numbers. So one is, we've had the growth. Number two is the fact that there's a lot of demand that's going on that we haven't been able to address, I would say largely to the OEMs and boatbuilders and stuff, Eric. We've been meeting some of that. It's queued up a little bit. The fringe place is really that we haven't addressed yet is really getting more into reman and some of those. So do I feel very good about upside and continued on a go-forward basis, the answer is yes.

嗯，Eric，這裡面有幾個不同的部分。首先，我們——我們的產量已經大幅提升。我們說過是低雙位數的增幅。所以第一點是，我們確實有成長。第二點是，確實有很多需求我們還沒能滿足；我會說主要是在OEM、造船廠等那一端，Eric。我們已經滿足了其中一部分。但還有一些是排隊等待中。真正還沒處理到的邊緣領域，是更深入到再製（reman）以及一些相關項目。所以我對未來的上行空間以及持續向前的表現是否很有信心？答案是肯定的。

And I'd just point out that our propulsion revenues were up 24% in the quarter. I think we're capitalizing on quite a bit of market opportunity. I think there's probably additional that we can as we bring more capacity online, but we're certainly keeping up and then some relative to what demand is.

我也補充一下，我們本季的推進系統營收年增24%。我認為我們正在把握相當多的市場機會。隨著我們把更多產能上線，可能還有額外的空間，但就需求而言，我們確實在跟上，甚至還超前一些。

Okay. And then just a question on the tariffs, sorry if I missed this. But the $60 million to $70 million of gross tariff impact for 2019, does that assume that exemption is granted for the wave 1 to 40, 60-horsepower engines? And then what does that represent, I guess, if it's granted and if it's not granted?

好的。接著問一下關稅的問題，抱歉如果我漏聽了。2019年關稅毛影響6,000萬到7,000萬美元，這個假設是否包含第一波1到40、60匹馬力引擎的豁免會獲准？另外，如果豁免獲准與未獲准，各自大概代表什麼影響？

Well, first of all, it doesn't assume it's granted. So it's the gross number assuming it would be continuing. In terms of it would be a meaningful part of the $30 million to $35 million net impact would be covered by the exemption. And we're just -- so we're just waiting to hear their results.

嗯，首先，它並沒有假設豁免會獲准。所以那是毛額數字，假設關稅會持續。至於如果豁免獲准，3,000萬到3,500萬美元的淨影響中，會有相當有意義的一部分可由豁免所涵蓋。我們現在就是——在等他們的結果。

And do you have a time frame for us? Because I know political wrangling is always up, but do you have a time frame when you think you might hear back?

那你們有一個時間表可以提供嗎？因為我知道政治角力總是存在，但你們覺得大概什麼時候會收到回覆？

Time frame is unknown.

時間表目前未知。

Our next question comes from the line of David MacGregor with Longbow Research.

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

Mark, congratulations on your retirement, wish you all the best.

Mark，恭喜你退休，祝你一切順利。

Thanks, David.

謝謝你，David。

You bet. Two things. Can you just talk about kind of the early initiatives on Sea Ray and just what you've done sort of as a point of departure on the journey there. And then secondly, just talk a little bit about Power Products. As a facilitator of OEM wins going forward and kind of the plan to the extent you feel comfortable discussing that?

當然。兩件事。你能談談Sea Ray早期的一些舉措，以及你們在那段旅程中作為起點做了哪些事情嗎？第二，請再談談Power Products。作為未來促成OEM勝出的推動因素，以及相關計畫——在你覺得方便分享的範圍內？

Yes, I'll start with -- let's just walk kind of 2 pieces to the Sea Ray. Part of it is just shutting down, closure everything around the large boats, sport yachts. And I would tell you that stuff is moving along pretty much exactly as we planned, and the inventory levels that are out in the field are low. So we feel good about all that. On the side of the sport boats and cruisers, we've got launches going on with new product coming in. It's fresh. People will be seeing that stuff down at Lauderdale. We've been getting great support and backing from the dealers wanting to bring some of that product in and get that going. A lot of attention around the efficiency and performance at the facilities and some leadership, talent additions we put up there. But some of that is, again, back to the dealer side is even dealers wanting to replace some of the volume they're losing and committing even more to the sport boats, sport cruisers. So we really feel good about where that's moving, David.

好的，我先從——我們把Sea Ray大致分兩個部分來看。其中一部分就是把大型船、運動遊艇相關的一切關停、收尾。我可以告訴你，這些進展幾乎完全符合我們的計畫，而且外部通路的庫存水位很低。所以我們對這部分感覺很好。在運動型船與巡航艇這一端，我們正在推出新產品。產品很新。大家會在Lauderdale那邊看到這些產品。經銷商給了我們很大的支持與背書，願意把部分產品導入並推動起來。我們也非常關注工廠端的效率與績效，以及我們在那裡補強的一些領導與人才。但其中一部分同樣回到經銷商端：甚至有經銷商希望補回他們正在流失的一些量，並且更投入於運動型船、運動巡航艇。所以David，我們對目前的進展真的感到很不錯。

And the Power Products?

那Power Products呢？

Yes, the Power Products. To the point of -- I think it opens a lot of doors because going -- pulling it down is we've had a great ability to bring a propulsion system to an engine or to an OEM boat manufacturer. Now we have the ability to bring kind of the electrical backbone and the propulsion system. And the reality is there's more and more technology there. It's becoming more and more difficult for the individual OEMs to deal with all the technology. And I would tell you that being able to walk in and provide an integrated system to them is going to be another differentiator of us versus some of our competitors. So we feel very good about the opportunities that, that can present.

是的，Power Products。就——我認為它打開了很多大門；因為過去我們很擅長把推進系統帶給引擎端或OEM造船商。現在我們也能把電氣骨幹（electrical backbone）以及推進系統一起帶給他們。而現實是，那裡的技術越來越多。對個別OEM來說，要處理所有這些技術變得越來越困難。我會說，我們能夠走進去並提供一套整合式系統，將會成為我們相對於部分競爭對手的另一個差異化優勢。因此，我們對這可能帶來的機會感到非常樂觀。

Our next question comes from the line of Seth Woolf with Northcoast Research.

我們的下一個問題來自Northcoast Research的Seth Woolf。

Thanks for squeezing me in here at the end. Congrats, Mark, and see you in Miami. So real quick. Just had a question on pipeline inventories. You said it was down slightly. And then when you talked about the retail performance, I think this is the first time that you've broken out what retail did and then retail ex Lowe. So is it -- if you assume that over -- since this didn't happen overnight, that there has been some benefits on the retail sales the last couple of quarters as you sold off the inventory that was in those locations or...

感謝讓我在最後插進來提問。恭喜你，Mark，邁阿密見。我很快問一下。想請教一下關於通路（pipeline）庫存。你說它略有下降。另外你在談零售表現時，我想這是你第一次把零售表現以及扣除 Lowe 的零售（retail ex Lowe）分開揭露。所以是否可以這樣理解——既然這不是一夕之間發生的，過去幾個季度在你們把那些據點裡的庫存賣掉、或把那些地點的庫存出清的過程中，零售銷售其實有獲得一些好處，還是……

No. Seth, we faced headwinds relative to Cabela's transition away from Lowe. This has been really going on for about 3 quarters. I'd say the third quarter a year ago is when the acquisition occurred. So we're starting, I think, to get to the point where it's probably the most challenging year-over-year because we look forward into model year '19. With the additional incremental dealers that we've been able to bring on, we should be in much better shape on a comparable basis. And honestly, Seth, I would say, some of that played into a pipeline a bit, but we've also been restocking and rebuilding dealer network without a lot of volume there, so that's a net offset. And I would attribute the decline in inventories at the end of this year more due to dealer restocking activity in Canada., Deferring that into '19. That's really going to be what's going to drive our pipeline inventories down year-over-year.

不是。Seth，因為 Cabela's 轉型、逐步脫離 Lowe，我們確實面臨逆風。這其實已經持續大約 3 個季度了。我會說，大約一年前的第三季完成了那項收購。所以我認為我們正開始進入一個階段：由於我們往 2019 年式（model year '19）展望，年對年比較可能會是最具挑戰的一年。隨著我們新增並導入更多經銷商，我們在可比基礎上應該會好很多。坦白說，Seth，我會說其中一部分確實對通路（pipeline）有些影響，但我們也一直在補貨並重建經銷商網路，而那裡的量並不大，所以整體上相互抵消。而我會把今年年底庫存下降更多歸因於加拿大經銷商的補庫活動，把一部分延後到 2019 年。這才是真正會推動我們通路庫存年對年下降的原因。

Okay, that helps. I guess what I was trying to think through was whether you had some -- did the selloff, that over the last couple of quarters, you were still getting a little bit of benefit as they sold the rest, whatever they had in stock off and then it's out of the inventory. So if ex Lowe, your pipeline was up year-over-year.

好的，這有幫助。我剛剛想釐清的是：過去幾個季度他們在出清剩餘庫存時——不管手上還有什麼存貨——你們是否仍然獲得了一點點好處，等他們把庫存賣完後就從庫存中消失。所以若扣除 Lowe，你們的通路（pipeline）其實是年對年增加的。

No. I don't think -- again, Seth, I don't think that, that's -- if you're thinking that, that should be driving a decline on a year-over-year hand on a weeks on hand basis. The point I made about rebuilding the Lowe dealer opportunity, that's something that we would have been -- we would have seen some benefit on the wholesale side, but not a lot of sell-through yet in the pipeline. So I don't think that's a reason to see pipelines decline here at the end of Q3. We are extremely comfortable with where our pipelines are at the end of the model year. We're exactly where we've been for the last 4 years and very comfortable in pipeline levels, exiting the retail season and entering the off-season.

不是。我不認為——再說一次，Seth，我不認為那是——如果你是這樣想的，那應該會在「以可供銷售週數（weeks on hand）」的年對年基礎上推動下降。我提到重建 Lowe 經銷商機會那件事，理論上我們會在批發端看到一些好處，但在通路中目前還沒有太多的終端銷售（sell-through）。所以我不認為那是我們在第三季末看到通路下降的原因。我們對於在年式結束時的通路水位非常放心。我們的位置與過去 4 年完全一致，對於通路水位非常有信心——在零售旺季結束、進入淡季之際。

Our next question comes from the line of Greg Badishkanian with Citi.

下一個問題來自 Citi 的 Greg Badishkanian。

It's actually Fred Wightman on for Greg. A couple of different times you've mentioned pricing is an offset for some of the tariff and cost pressures that you've seen. I'm wondering if you could sort of contextualize the price increases that you guys are pushing through this year versus more of a "normal year."

其實我是代 Greg 發問的 Fred Wightman。你們在幾個不同的時點提到，定價可以抵消你們看到的一些關稅與成本壓力。我想請你們把今年推動的漲價幅度，和「正常年份」相比，稍微放在脈絡中說明一下。

The only thing I'd say there, Greg (sic) [Fred], is obviously, they're up a little bit, but I don't think anything is outside of what we're seeing competitors doing as well. But obviously, some of the impacts is causing us to adjust our pricing a little. So you can take the numbers of kind of what the tariff stuff amounts and kind of back -- go backwards into the increase, but it's up a little bit, but it's more of just being offsets.

我在這裡唯一想說的是，Greg（口誤）[Fred]，很明顯價格是有小幅上調，但我不認為有任何超出我們看到競爭對手也在做的範圍。但顯然，一些影響正促使我們稍微調整定價。所以你可以用關稅相關的金額大概是多少去推回來、倒推這次的漲價幅度；確實是上調了一點，但更多只是用來抵消成本。

And I'd say the fact that we've got a very fresh product lineup with just a superb new offering that we just come out with this year, we certainly feel like we're in a position where we can pass along pricing to the extent we need to, right? So our product line is very strong, and our brands are very strong.

另外，我想說的是，我們今年推出了非常新、非常完整的產品陣容，還有一個極為出色的新產品供給，因此我們確實覺得自己處在一個位置：在需要的範圍內，我們可以把價格調整轉嫁出去，對吧？所以我們的產品線非常強，我們的品牌也非常強。

Okay. And then in the past, you've talked about sort of the 12- to 18-month lag for any hurricane-related demand. Could you sort of talk about what you've seen from last year's storms versus what you might have expected?

好的。另外，過去你們談到颶風相關需求通常會有 12 到 18 個月的落後期。你能否談談你們從去年的風災中看到的情況，和你們原本可能預期的相比如何？

Well, I don't think we've seen any noticeable recovery impact. In fact, if you look at Florida, Florida is down a little bit. And I would expect that still relates to not seeing some of the recovery from last year yet. But there's lots and lots of variables going on, but I wouldn't say we've seen noticeable impact yet. And again, we've always talked 12 to 18 months, and we're kind of at the bottom end of that range right now.

嗯，我不認為我們看到任何明顯的復原帶動效應。事實上，如果你看佛羅里達，佛州還略有下滑。我預期這仍然與尚未看到去年風災後的復原需求有關。當然有非常多變數在發生，但我不會說我們已經看到明顯影響。而且我們一直都說是 12 到 18 個月，我們現在大概正處在那個區間的下緣。

Our next question comes from the line of Gerrick Johnson with BMO Capital Markets.

下一個問題來自 BMO Capital Markets 的 Gerrick Johnson。

Great. Congratulations, Mark, also to David. Had 2 questions here, one near term, one longer term. In the near term, how did the boat retail progress through the quarter? Did you see it strengthen or weaken? And then also from a higher level, the pushback I often get here is that we're end of cycle or at least not at the beginning of the cycle. So where do you think we are in this current cycle? Why should investors be comfortable with where we are in the cycle?

很好。也恭喜你，Mark，也恭喜 David。我有兩個問題，一個是短期、一個是較長期。短期來看，本季船艇零售（boat retail）在季度內的走勢如何？你們看到它轉強還是轉弱？另外從更高層次來看，我常聽到的反駁是：我們已經在景氣循環末端，或至少不是在循環初期。所以你認為我們目前在這一輪循環中的位置在哪裡？投資人為什麼應該對我們在循環中的位置感到放心？

Yes, I mean -- so, Gerrick, if you look at the micros. I mean, replacement demand is good. The premium-value mix stuff is going on. A lot of great new products and even things going on in category rotation now between. So I would tell you, a lot of those things, including the dealer sentiments that, on a micro level, still remain very positive. Even if you go to the macro, in the developed countries, particularly of things like U.S., the economies are strong. I would tell you, as we either -- we look at a lot of the other variables: employment, unemployment, whichever way you want to look at, consumer confidence, GDPs, tariffs. Out there, tariffs and geopolitical probably are, midterms, are some of the negative, but they're not really cycle related. They're probably a little more point in time. So things that we would assign more to the cycle of those micro and macro, we think continue to bode well for kind of a steady growth in the 3% to 5% that we've talked about in the past.

是的，我的意思是——Gerrick，如果你看微觀面。替換需求（replacement demand）是好的。高端與價值（premium-value）的組合變化正在發生。有很多很棒的新產品，甚至在品類輪動（category rotation）方面也正在出現一些變化。所以我會告訴你，包含經銷商情緒在內，很多這些微觀層面的因素仍然非常正面。即使你看宏觀面，在已開發國家，特別是像美國這樣的市場，經濟依然強勁。我會說，當我們看其他許多變數：就業、失業（不管你想用哪個角度看）、消費者信心、GDP、關稅。其中，關稅與地緣政治、期中選舉（midterms）可能是一些負面因素，但它們其實不太算是循環相關。它們可能更偏向於某個時間點的因素。因此，對於我們會更歸因於景氣循環的那些微觀與宏觀因素，我們認為仍然有利於我們過去談到的 3% 到 5% 的穩健成長。

And Gerrick, I would just comment on for -- the retail progressing throughout the quarter. We really haven't seen any change in trends that make us change our kind of short or long-term outlook on the marine market. I will say that we continue to see strength in categories that are important to us. Categories that Sea Ray participates in, sport boats and cruisers, pontoons continue to be strong. Saltwater continues to be strong. So we're pretty confident here as we closed out the retail selling season. Again, I think we got set up for dealers to feel comfortable restocking product. We've got a lot of new product that's been introduced that should put dealers in a position where they're going to restock in advance of the boat show season, which starts here late in the fourth quarter and then into the first. So we feel like we're pretty well positioned exiting the third quarter and then entering the off-season.

至於 Gerrick，我想就——本季期間零售端的進展稍作評論。我們確實沒有看到任何趨勢變化，會讓我們改變對海事市場的短期或長期展望。我會說，我們持續看到對我們很重要的品類仍具強勁動能。Sea Ray 參與的品類——運動型船與巡航艇、浮筒船——仍然強勁。鹹水市場仍然強勁。因此，在我們結束零售銷售季時，我們相當有信心。再說一次，我認為我們已讓經銷商處於能夠放心補庫存的狀態。我們推出了許多新產品，應能讓經銷商在船展季開始前就提前補貨；船展季在第四季末開始，並延續到第一季。所以我們覺得，在第三季結束、進入淡季之際，我們的布局相當到位。

Our next question comes from the line of Tim Conder with Wells Fargo Securities.

下一個問題來自 Wells Fargo Securities 的 Tim Conder。

Mark, first of all, let me also offer my congratulations and enjoy the grandkids, most of all, the Ohio state, but I cannot wish you an enjoyable Cubs future as a Cardinals fan On the business here, I would like to -- a little clarity on the tariff things. In your presentation, you have outlined $30 million to $35 million net, which first of all, it seems like you're including getting that list one exemption to get in part of that. But then below that, on the slide, you're talked about a $20 million to $25 million incremental. So just maybe kind of clarify that.

Mark，首先也讓我表達祝賀，也祝你享受含飴弄孫——最重要的是俄亥俄州立；但身為紅雀隊球迷，我無法祝你未來支持小熊隊也能愉快。回到業務面，我想就關稅議題請你再釐清一下。在你的簡報中，你列出淨額 3,000 萬到 3,500 萬美元；首先，看起來你把取得清單一（list one）豁免的可能性也納入其中，至少是部分納入。但在投影片下方，你又提到 2,000 萬到 2,500 萬美元的增量。所以能否請你把這部分差異再說清楚一些。

Yes. Tim, I'll go back I mentioned on the prior. We are not assuming we're going to get an exemption. So in the event we got an exemption, that would be good news to what we talked about here today. So go ahead with your question.

是的。Tim，我回到我先前提到的。我們並沒有假設一定會取得豁免。因此，如果我們真的取得豁免，那將會是相對於我們今天所談內容的利多。你可以繼續你的問題。

Okay. No, that's part of it, that helps. So on the slide, it says $30 million to $35 million net, but then it says $20 million to $25 million incremental, just maybe parse through that, the difference there on that slide. It's a little bit confusing, I think.

好的。不，這就是其中一部分，這樣有幫助。所以投影片上寫淨額 3,000 萬到 3,500 萬美元，但又寫增量 2,000 萬到 2,500 萬美元；能否請你拆解一下那張投影片上兩者的差別？我覺得有點令人困惑。

All that, really, 2018 has got the $10 million to $15 million. And so the incremental is over and above the $10 million to $15 million in '18.

其實 2018 年已經包含了 1,000 萬到 1,500 萬美元。所以所謂的增量，是指在 2018 年那 1,000 萬到 1,500 萬美元之上、額外增加的部分。

It's been adjusted for the bottom end of the range, Tim $10 million across-the-board.

Tim，這已經針對區間下緣做了調整，也就是全面以 1,000 萬美元作為基礎。

Okay. So again, the -- okay, the $20 million to $25 million is the true incremental in '19 that we're looking at, at this point ex any list 4 coming on?

好的。所以再確認一下——好的——我們目前看到的 2019 年真正的增量是 2,000 萬到 2,500 萬美元，且不包含任何清單四（list 4）上路的影響？

Ex any list 4. It's all based upon things like the 10% going up to 25%. It's the full year impacts of some of what we've seen in 2018, Tim.

不包含任何清單四。這完全是基於例如 10% 提高到 25% 之類的情況。也包含我們在 2018 年看到的一些事項在 2019 年的全年化影響，Tim。

Yes, I mean, if you stack up the positives and negatives, Tim, I think you articulated that the exemption would be a positive, correct? And that's mostly what our wave 1 exposure is. So that you can kind of size. And I would tell you that, that is -- that exemption would take care of most of the $30 million to $35 million net, a substantial part of it, represents the part that could be exempted as part of the process.

是的，我的意思是，如果把正負因素加總起來，Tim，我想你也表達得很清楚：豁免會是利多，對吧？而那主要就是我們第一波（wave 1）的曝險。所以你可以大致估算其規模。我也會告訴你，那個——若取得豁免，將可涵蓋我們淨額 3,000 萬到 3,500 萬美元中的大部分；其中相當大一部分，代表在流程中可能被豁免的那一塊。

Okay, okay.

好的，好的。

And obviously, we've got some additional risk related to wave 4, but we got to characterize that as being manageable. That doesn't materially increase our risk profile.

而且很明顯地，我們還有一些與第四波（wave 4）相關的額外風險，但我們會把它定性為可控。它不會實質提高我們的風險輪廓。

Okay, helpful. And then on Fitness, it seems like internally, I know you guys have had a lot going on this year from acquisitions to preparing on Fitness and just a lot of things, refinancings and so forth, but it seems like internally, maybe there's been a little bit of a pause and, obviously, the delay in the Form 10. Was there a pause and reassessment giving maybe inbound interest in purchasing? And has that been the main little pause here that we've seen or any other characterizations? Has there been anything fundamentally that's changed that's maybe resulted in the pause on the process of the Fitness separation?

好的，很有幫助。接著談 Fitness，看起來在內部——我知道你們今年有很多事情在進行，從併購到為 Fitness 做準備，以及很多事項、再融資等等——但看起來內部可能有稍微停一下，且顯然 Form 10 也延後了。是否因為有潛在買方的興趣而暫停並重新評估？而這是否就是我們看到這段小停頓的主要原因，或還有其他說法？是否有任何根本性的改變，導致 Fitness 分拆流程出現停頓？

I would tell you, Tim, probably the biggest thing. I wouldn't call it a pause. It's just literally getting through everything around the Power Products, the retail financing, all the things, getting that in the filings and all the stuff done. The Form 10 just kind of moved from the end of the third quarter with all the stuff we had going on to really in November, and I literally wouldn't interpret it as much more than the fact that we just had 10 pounds trying to go through the funnel. And yes, we were -- that I wouldn't interpret it as more than that, Tim.

Tim，我會說，可能最大的因素是——我不會稱之為暫停。而是我們真的在處理 Power Products、零售融資等所有事情，把這些都納入申報文件並把所有工作完成。Form 10 只是因為我們手上同時進行的事情太多，從原本第三季末移到大概 11 月；我真的不會把它解讀成除了「同時有太多事情要塞進漏斗」之外的其他原因。而且是的——我不會把它解讀成更多的意思，Tim。

Okay. And then lastly, to circle back to a question on the engine capacity. So you added a lot of capacity and basically ramped up here and very quickly filled that. And just, to again, to clarify that you're going to be adding additional capacity here currently for '19, but that should not have any material incremental operating cost because -- is that what I interpreted correctly from a previous question?

好的。最後再回到引擎產能的問題。你們新增了很多產能，基本上在這裡快速爬坡，且很快就把新增產能填滿。我想再確認一次：你們目前仍會在 2019 年增加額外產能，但不會帶來任何重大的額外營運成本，因為——我從先前的問題理解是這樣，對嗎？

Yes, that would be a fair statement, Tim.

是的，Tim，這樣的說法是合理的。

Thank you. This concludes our question-and-answer session. I would now like to turn the call back to Mark for some concluding remarks.

謝謝。問答環節到此結束。我現在想把電話交回給 Mark，請他做一些結語。

Yes. Just a closing thought. As I said before I went to the Q&A, I'm really excited about the business, the momentum we've got generated. I think the portfolio actions and the product stuff we've got going around the engine business, the Power Products acquisition and reminding you, we all said we'd be at $1.5 million -- or $1.5 billion and do the 350, all those things have taken place, the portfolio on the boat side.

好的。最後做個收尾的想法。正如我在進入問答前所說，我對這項業務以及我們所帶動的動能感到非常振奮。我認為我們在引擎業務周邊所做的投資組合調整與產品布局、Power Products 的併購，以及提醒大家——我們都說過我們會達到 150 萬——或 15 億美元並做到 350，所有這些事情都已經發生了，包含船艇端的投資組合調整。

So I mean, the past 14 years at Brunswick probably are the most rewarding in my entire 40-plus-year career, and I've really been honored to lead and I've been inspired by all the people that have been able to work with around the world, including dealers, distributors, suppliers, et cetera.

所以，我的意思是，在 Brunswick 的過去 14 年，可能是我 40 多年職涯中最有收穫的一段；我很榮幸能夠領導，也受到全球許多我有機會共事的人所啟發，包括經銷商、通路商、供應商等等。

Brunswick is always going to be part of me, but now it's an opportunity for me to go off and spend some time with my wife of 43 years, my daughters and now 4 grandchildren. So that's what I'm looking forward to, and there's a great -- I'm leaving this in a great hands to a great staff and organization. Thank you.

Brunswick 永遠會是我生命的一部分，但現在對我而言，是一個機會可以離開去陪伴結婚 43 年的妻子、我的女兒們，以及現在的 4 個孫子女。所以這是我所期待的；而且我把公司交到一個很棒的團隊與組織手上，大家都很優秀。謝謝。

Ladies and gentlemen, thank you for participating in today's conference. This does conclude today's program. You may all disconnect. Everyone, have a great day.

各位女士、先生，感謝您參與今天的電話會議。今天的議程到此結束。各位可以掛線。祝大家今天愉快。