賓士域 (BC) 2019 Q1 法說會逐字稿

Good morning, and welcome to Brunswick Corporation's First Quarter 2019 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 2019 年第一季財報電話會議。（接線員指示）今天的會議將會錄音。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.

現在我想介紹投資人關係副總裁 Ryan Gwillim。

Good morning. Thank you for joining us. On the call this morning are Dave Foulkes, Brunswick's 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 執行長 Dave Foulkes，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 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.

在開始我們準備好的發言之前，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有重大差異。關於需考量因素的詳細資訊，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的網站 brunswick.com 取得。

During our presentation, we will also 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，我們也會提及若干非 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。

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

現在我想把電話會議交給 Dave。

Thank you, Ryan. Good morning, everyone. As anticipated, our marine business delivered strong results in the first quarter as we grew top line by over 10% and expanded operating margins by 80 basis points. These results reflect the continued successful execution of our marine strategy, focusing on product and technology leadership, growth initiatives and operational excellence.

謝謝你，Ryan。各位早安。如同預期，我們的海事業務在第一季交出強勁成果，營收成長超過 10%，營業利益率擴大 80 個基點。這些成果反映我們持續成功執行海事策略，聚焦於產品與技術領導地位、成長計畫以及營運卓越。

After a slower-than-expected start to the marine selling season due in part to more challenging weather conditions in much of the U.S., we believe that the market demand for the remainder of the year will reflect modest growth in units with dollars again growing at a greater rate. As a result, we will continue to execute against our plans and our overall marine strategy, and we believe that we can deliver operating performance and cost controls that will drive strong leverage and achieve our full year earnings targets.

由於美國多數地區較具挑戰性的天候條件等因素，海事銷售季開局較預期緩慢；我們相信今年剩餘期間的市場需求將呈現單位數量溫和成長，而金額仍將以更快速度成長。因此，我們將持續依計畫與整體海事策略執行；我們相信可透過營運表現與成本控管，帶動強勁槓桿效益並達成全年獲利目標。

Finally, we have made significant progress on the separation of the Fitness business from the portfolio which I will discuss in more detail on an upcoming slide.

最後，我們在將 Fitness（健身）業務自投資組合中分離方面已取得重大進展，我將在接下來的投影片中更詳細說明。

I'll now provide some commentary on our segments and the overall marine market. The Marine Engine segment continued its momentum from the second half of last year. Engine demand remains particularly strong for the 175-horsepower to 300-horsepower V6 and V8 outboard engines introduced in 2018 and the new mainline 400-horsepower outboard which debuted in Miami in February.

接下來我將就各事業部門與整體海事市場提供一些評論。Marine Engine（船用引擎）事業部延續去年下半年的動能。引擎需求仍特別強勁，主要來自 2018 年推出的 175 至 300 匹馬力 V6 與 V8 舷外機，以及 2 月在邁阿密亮相的新款主力 400 匹馬力舷外機。

These platforms are the most recent evidence of the success of our strategic investments in industry-leading technology and product development capability which has driven both market share gains and margin accretion. Note that the capacity investments discussed on our last call which will further enhance our engine production capabilities remain on target for completion in the fourth quarter. In addition, we plan to deliver exciting new engine products during the remainder of 2019.

這些平台是我們在業界領先技術與產品開發能力方面策略性投資成功的最新證明，並帶動市占提升與毛利率擴張。請注意，我們在上次電話會議中提到、將進一步強化引擎產能的產能投資，仍按計畫於第四季完成。此外，我們計畫在 2019 年剩餘期間推出令人振奮的新引擎產品。

The parts and accessories business continued its steady performance led by Power Products. The delayed start to the boating season in the U.S. has slowed OEM and aftermarket parts sales, but we anticipate that improved conditions will lead to performance consistent with recent experience.

零件與配件業務延續穩健表現，主要由 Power Products 帶動。美國划船季延後開跑，已使 OEM 與售後市場零件銷售放緩，但我們預期隨著條件改善，表現將與近期經驗一致。

Overall, revenue growth was 11.5% in the quarter with outstanding operating leverage of 31%, leading to a 180 basis point improvement in operating margin.

整體而言，本季營收成長 11.5%，營運槓桿效益達 31% 的亮眼水準，帶動營業利益率提升 180 個基點。

The Boat business remains focused on delivering our long-term strategic commitments, including investing in our market-leading premium boat categories, enabling and enhancing the boating experience and maximizing operational efficiency across our manufacturing footprint.

Boat（船艇）業務仍專注於落實我們的長期策略承諾，包括投資於市場領先的高端船艇品類、促成並提升划船體驗，以及在整體製造版圖中最大化營運效率。

For the first quarter, top line growth in the segment was slightly below expectations due mostly to weather and some market softness in the value categories. However, our aspirational brands with premium content continue to outperform with growth in average sales prices outpacing unit results. Sales in international markets were down as expected.

第一季該事業部營收成長略低於預期，主要因天候因素以及價值型品類出現一些市場疲弱。然而，我們具高端配置的理想型品牌持續表現優於市場，平均銷售價格的成長速度超過出貨量表現。國際市場銷售如預期下滑。

Operating margins declined 50 basis points due in part to factors that will help enable future margin expansion and growth, as Bill will discuss in a few minutes.

營業利益率下滑 50 個基點，部分原因來自一些將有助於未來利益率擴張與成長的因素，Bill 將在幾分鐘後說明。

Lastly, we announced 2 strategic moves to enhance our manufacturing and product development capabilities which I will discuss at the end of the call.

最後，我們宣布兩項策略性行動，以強化製造與產品開發能力；我將在電話會議結尾加以說明。

Looking at our combined marine segments. Global revenue grew by more than 10%, with 6% growth achieved on a constant currency, ex acquisitions basis. The Engine segment reported strong growth in international markets, including benefits from improved outboard engine availability. U.S. market growth was influenced by a delayed start to the marine season and continued weakness in sterndrive engine sales.

從我們合併後的海事事業部來看。全球營收成長超過 10%；以固定匯率、排除併購影響計算，成長 6%。引擎事業部在國際市場呈現強勁成長，其中包括舷外機供應改善所帶來的效益。美國市場成長受到海事季延後開跑以及艉內外機（sterndrive）引擎銷售持續疲弱的影響。

The Boat business also delivered solid growth with U.S. outperforming international markets. Sales in Europe were down as anticipated primarily due to slower market conditions and the supply constraint caused by a transition from a contract manufacturer as we discussed in January. Canadian sales were up in the quarter after very weak wholesale demand in the second half of 2018 as dealers deferred orders to Q1 in response to the tariffs on boats imported from the U.S.

Boat（船艇）業務同樣交出穩健成長，美國市場表現優於國際市場。歐洲銷售如預期下滑，主要因市場狀況較為遲緩，以及如我們 1 月所討論，因從合約製造商轉換所造成的供應限制。加拿大本季銷售成長；在 2018 年下半年經銷商因應自美國進口船艇關稅而延後下單、導致批發需求非常疲弱後，經銷商將訂單遞延至第一季。

The Power Products acquisition added 6% growth to marine business in the quarter while currency was unfavorable by 2 percentage points.

Power Products 的收購案為本季海事業務帶來 6% 的成長貢獻，而匯率則帶來不利影響 2 個百分點。

As I mentioned, the U.S. market is off to a slower start than anticipated in 2019 with reported industry demand metrics mixed. NMMA outboard registrations, which represents a more complete view of the market, were essentially flat with the prior year. As a reminder, currently, over 90% of boats sold are powered by outboards.

如我所提到，2019 年美國市場開局較預期緩慢，產業需求指標呈現分歧。NMMA 舷外機登記數（更完整反映市場的指標）與去年同期基本持平。提醒各位，目前售出的船艇中，超過 90% 由舷外機提供動力。

SSI, which provides a somewhat incomplete view of the market, is reporting a decline in demand of 7%. SSI reporting for the first quarter remains preliminary as this reflects only 46% of the activity in March with several key states, including Florida, not yet reporting. This is significant because March normally comprises half of the retail activity in the first quarter.

SSI（對市場的觀察相對不完整）則回報需求下滑 7%。SSI 第一季的回報仍屬初步，因其僅反映 3 月活動量的 46%，且包括佛羅里達在內的數個關鍵州尚未回報。這點很重要，因為 3 月通常占第一季零售活動的一半。

Our view is that the unit market in the first quarter was most likely slightly down primarily due to weather and softness in value categories. On a dollar basis, the market continues to grow due to strength in premium categories.

我們的看法是，第一季的單位數市場很可能小幅下滑，主要因天候以及價值型品類疲弱。以金額計，市場仍因高端品類的強勁表現而持續成長。

Turning to the Fitness segment. Our attention remains firmly on completing the separation of this business from the portfolio. As I mentioned earlier, we've made significant progress on the separation and are very encouraged by the strong level of buyer interest in the sales process. Consequently, while we continue to maintain our preparedness for spinning the business, we have confidence that we will be in a position to announce a sale of the Fitness business as expeditiously as possible in the second quarter.

接著談 Fitness（健身）事業部。我們的重點仍堅定放在完成將該業務自投資組合中分離。如我先前所述，我們在分離作業上已取得重大進展，且對於出售流程中買方高度的興趣感到非常鼓舞。因此，雖然我們仍持續維持分拆該業務的準備，我們有信心在第二季能以最快速度達到可宣布出售 Fitness 業務的狀態。

Fitness' first quarter performance was mostly consistent with our expectations with revenue declines resulting from lower sales to Planet Fitness and softness in certain international markets. Gross margins remained relatively stable from the second half of 2018.

Fitness 第一季表現大致符合我們的預期；營收下滑主要源於對 Planet Fitness 的銷售降低，以及部分國際市場的疲弱。毛利率相較 2018 年下半年維持相對穩定。

Now I'll turn the call over to Bill for 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提供更多評論。

Thanks, Dave. Diluted EPS for the quarter was $0.99 per share on an as adjusted basis. For the marine business, EPS was $0.94 per share, a 6% increase versus first quarter of 2018, including the impact of higher interest cost and tax rate.

謝謝，Dave。本季按調整後口徑計算的稀釋每股盈餘（EPS）為每股 0.99 美元。就海事業務而言，EPS 為每股 0.94 美元，較 2018 年第一季成長 6%，其中已包含較高利息成本與稅率的影響。

Marine revenue was up more than 10%. The combined marine businesses delivered operating earnings improvement of 18% which translated into operating margin improvement of 80 basis points and leverage of 20%.

船舶業務營收成長超過10%。合併後的船舶相關業務營業利益提升18%，帶動營業利益率提升80個基點，營運槓桿達20%。

In the Marine Engine segment, revenue grew 11% led by Power Products which added 8% to the growth rate and continued robust demand for higher horsepower outboard engines. The organic P&A business continues to grow at a steady pace with weather negatively influencing U.S. sales in the quarter.

在船舶引擎事業部門，營收成長11%，主要由動力產品（Power Products）帶動，該業務為成長率貢獻8%，且高馬力舷外機需求持續強勁。有機的零件與配件（P&A）業務持續以穩健步調成長，但本季天候因素對美國銷售造成負面影響。

Mercury's adjusted operating earnings increased 25% in the quarter due to increased sales as well as favorable impact from changes in sales mix which both contributed to a 180 basis point increase in adjusted operating margins and operating leverage of 31%.

Mercury 本季調整後營業利益成長25%，主要受惠於銷售增加，以及銷售組合變動帶來的有利影響；兩者共同促成調整後營業利益率提升180個基點，營運槓桿達31%。

In the Boat segment, adjusted revenue grew 3%, outpacing changes in unit volumes which were down 5% globally. Average selling prices expanded due to changes in mix and increased content on boats, along with inflationary price increases.

在船艇（Boat）事業部門，調整後營收成長3%，優於全球出貨量下滑5%的變化。平均售價因產品組合變動與船艇內容配備增加而上升，並加上通膨帶動的漲價。

Adjusted operating margin declined by 50 basis points as they were temporarily influenced by less favorable plant efficiencies at certain of our boat facilities due in part to new product integrations and related complexities. In addition, the Boat business had elevated spending on profit improvement initiatives in the quarter which we believe will enable future growth. These factors offset benefits from positive changes in mix.

調整後營業利益率下滑50個基點，主要是因部分船艇工廠的生產效率短期較不理想，部分原因在於新產品整合及相關複雜性。此外，船艇業務本季在獲利改善計畫上的支出偏高，我們相信這將有助於未來成長。上述因素抵銷了產品組合正向變化所帶來的效益。

Dealer pipelines ended the quarter with 40 weeks of boats on hand measured on a trailing 12-month basis which is up slightly from last year. Year-over-year pipeline variability is very common at this early point in the season particularly given the delayed start in the boating season.

經銷商通路庫存於本季末以過去12個月為基礎衡量，手上庫存約為40週，較去年略為增加。在季節初期，通路庫存的年對年波動相當常見，尤其是在船艇季節延後開始的情況下。

We believe that our pipeline levels are appropriate given the anticipated level of retail demand. Over the remainder of the year, our disciplined management of pipeline inventories will continue as we plan to make necessary adjustments to match wholesale shipments with retail activity. Our plan anticipates that year-end pipelines will be consistent with 2018 levels on a weeks on hand basis.

我們認為，考量預期的零售需求水準，目前的通路庫存水位是適當的。在今年剩餘期間，我們將持續以嚴謹方式管理通路庫存，並規劃進行必要調整，使批發出貨與零售動能相匹配。我們的計畫預期，以「手上庫存週數」衡量，年底通路庫存將與2018年水準一致。

Our first quarter GAAP results also reflect the impact of 3 items which have been excluded from our as adjusted results. We recorded restructuring, exit, integration and impairment charges in the quarter totaling $141.5 million mostly related to an impairment of goodwill resulting from a re-evaluation of the fair value of the Fitness reporting unit which was informed by significant progress made on the sale process.

我們第一季的 GAAP 結果亦反映了3項已自「調整後」結果中排除的影響。本季我們認列重整、退出、整合及減損費用合計1.415億美元，主要與商譽減損有關；該減損源於在出售流程取得重大進展後，重新評估 Fitness 報導單位的公允價值。

This pretax impairment of $137.2 million resulted in an after-tax charge of $103 million and an adjusted net book value of the Fitness business of approximately $500 million. Other items related to the Fitness separation and purchase accounting amortization in connection with the Power Products acquisition.

此稅前減損1.372億美元，導致稅後費用1.03億美元，並使 Fitness 業務的調整後淨帳面價值約為5億美元。其他項目則與 Fitness 分拆以及與 Power Products 收購相關的購買會計攤銷有關。

Our full year guidance for the combined marine business remains relatively unchanged. Absent significant changes in the macroeconomic climate and assuming our expectations for marine industry trends remain intact, we anticipate overall revenue growth rates in the range of 8% to 10%. Although slightly lower than previous estimates, this expectation still represents strong top line growth for the year.

我們對合併後船舶業務的全年指引大致維持不變。在宏觀經濟環境未出現重大變化，且我們對船舶產業趨勢的預期仍成立的前提下，我們預期整體營收成長率約為8%至10%。雖較先前估計略低，但此預期仍代表今年營收端（top line）將有強勁成長。

Operating expenses are estimated to be lower than 2018 on a percentage of sales basis as we continue to fund investments in growth while driving improved cost efficiencies. We believe that these factors, together with ongoing benefits from new products and acquisitions, will enable strong leverage and margin growth, especially in the Engine segment, and allows us to achieve our initial operating earnings growth guidance of high-teens percent for the year.

我們估計營業費用占銷售額比重將低於2018年，因我們在持續投入成長投資的同時，也推動成本效率提升。我們相信，這些因素加上新產品與併購帶來的持續效益，將帶動強勁的槓桿效果與利潤率成長，尤其是在引擎事業部門，並使我們得以達成全年最初所給出的「營業利益成長率為十幾個百分點後段（high-teens percent）」指引。

Our guidance for the full year adjusted diluted EPS, excluding the Fitness business, remains in the range of $4.50 to $4.70 per share. Key changes from our previous guidance include benefits from lower tariffs and spending reductions offsetting slightly lower growth in projected marine sales.

我們對全年調整後稀釋每股盈餘（EPS）的指引（不含 Fitness 業務）仍維持每股4.50至4.70美元區間。相較先前指引的主要變動包括：較低關稅與支出削減帶來的效益，抵銷了對船舶銷售成長預估略為下修的影響。

For the second quarter, we anticipate revenue growth within the full year range and marine business adjusted EPS in the range of $1.43 to $1.50 per share. In addition, we expect that the profitability of the Fitness business in the second quarter will look similar to the first quarter results with the significant majority of 2019 earnings coming in the back half of the year.

就第二季而言，我們預期營收成長將落在全年區間內，且船舶業務調整後 EPS 約為每股1.43至1.50美元。此外，我們預期 Fitness 業務第二季的獲利表現將與第一季相近，而2019年絕大多數的獲利將集中在下半年。

In our marine businesses, we now anticipate an impact to 2019 pretax earnings of $10 million to $15 million related to tariffs which has improved from our previous estimate. This updated estimate now assumes that the previously announced Wave 3 of China tariffs stays at 10% as opposed to increasing to 25% on March 1 which was previously anticipated, and assumes that we moderate a portion of the price increases that were aimed at covering certain components of the net tariff impact.

在船舶業務方面，我們目前預期2019年稅前獲利將受到關稅影響約1,000萬至1,500萬美元，較先前估計有所改善。此更新後的估計假設先前宣布的中國關稅第3波（Wave 3）維持在10%，而非如先前預期於3月1日提高至25%；同時也假設我們會適度降低部分原本用以涵蓋關稅淨影響某些組成項目的漲價幅度。

The impact of retaliatory tariffs on boat exports to Canada and the EU continue to be incorporated into our plan with early-season sales into these locations consistent with our expectations.

針對加拿大與歐盟對船艇出口所施加的報復性關稅影響，我們仍持續納入計畫之中，且季初對這些地區的銷售表現符合我們的預期。

Next, I would like to provide an update on certain items that will impact our P&L and cash flow for 2019. Most of our initial expectations for the year remain unchanged. We anticipate strong free cash flow in 2019 in excess of $300 million, excluding any Fitness segment results or separation costs, and estimated depreciation and amortization between $100 million and $110 million which excludes the intangible amortization associated with the Power Products acquisition. This very strong projected free cash flow generation will allow us to continue to fund future investments in growth, including acquisitions, and successfully implement our capital strategy.

接下來，我想就2019年將影響我們損益表（P&L）與現金流的若干項目提供最新進展。我們對今年的大多數初始預期仍維持不變。我們預期2019年將有強勁的自由現金流，超過3億美元（不含 Fitness 部門結果或分拆成本），並預估折舊與攤銷介於1億至1.1億美元之間（不含與 Power Products 收購相關的無形資產攤銷）。如此強勁的自由現金流創造能力，將使我們得以持續投入未來成長投資（包括併購），並成功落實我們的資本策略。

We estimate that the effective book tax rate for the combined marine business in 2019 will be approximately 23% which is slightly lower than our initial assumption for the year.

我們估計合併後船舶業務在2019年的有效帳面稅率約為23%，略低於我們年初的假設。

Our capital strategy assumptions remain mainly unchanged as well. Our capital expenditure plan continues to be focused on investments related to product development and capacity with a healthy portion of payments made in the first quarter related to the Q4 2018 activity associated with engine manufacturing capacity projects. The pension exit is also proceeding as planned with completion anticipated in the third quarter.

我們對資本策略的假設也大致維持不變。我們的資本支出計畫仍聚焦於產品開發與產能相關投資；其中第一季有相當比例的付款與2018年第四季、與引擎製造產能專案相關的活動有關。退休金退出（pension exit）亦按計畫推進，預計於第三季完成。

Our plans continue to include debt reductions of at least $150 million to $200 million in '19 with actions primarily occurring towards the end of the year. Our long-term objective for debt retirement is now approximately $400 million as a result of recently completed refinancing activity.

我們的計畫仍包括在2019年減少至少1.5億至2億美元的債務，相關行動主要將在年底前後進行。由於近期完成再融資活動，我們長期的債務償還目標現約為4億美元。

During the first quarter, we completed our third retail bond offering, bringing our total refinancing since October to $540 million. These offerings have allowed us to further extend the maturities of some of our acquisition debt obligations at an attractive cost of capital. Incorporating these actions, our estimated net interest expense for the year is expected between $73 million and $75 million which is slightly higher than initially anticipated.

第一季期間，我們完成第三次零售債券發行，使自10月以來的再融資總額達5.4億美元。這些發行使我們得以以具吸引力的資金成本，進一步延長部分併購債務義務的到期年限。納入這些行動後，我們預估今年的淨利息費用約為7,300萬至7,500萬美元，略高於最初預期。

Importantly, we have several opportunities to deploy capital from the impending Fitness separation to further enhance shareholder value that are not currently reflected in our 2019 capital plan or guidance. These include accelerating debt retirement, re-engaging in share repurchases and deploying additional capital for M&A. In the normal course, we will also continue to look for opportunities to enhance our dividend payout consistent with our historical objectives.

重要的是，我們有多項機會可運用即將進行的 Fitness 分拆所釋出的資本，以進一步提升股東價值，而這些目前尚未反映在我們2019年的資本計畫或指引中。這些機會包括加速償還債務、重新啟動庫藏股回購，以及投入更多資本用於併購（M&A）。在正常營運過程中，我們也將持續尋找機會，在符合我們歷史目標的一致性下，提高股利發放水準。

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

接下來我把電話交回給 Dave，請他繼續說明我們的展望。

Thanks, Bill. As I mentioned in the opening of this call, we continue to execute against our plans for the year and our overall marine strategy with several key factors driving our future performance.

謝謝，Bill。如我在本次電話會議開場時提到的，我們持續依照今年的計畫與整體船舶策略執行，並有數項關鍵因素將驅動我們未來的表現。

In the Marine Engine segment, this entails growing market share in outboard engines, especially in the greater than 175-horsepower categories, and completing additional capacity initiatives necessary to meet the extremely strong market demand for these products.

在船舶引擎事業部門，這包括提升舷外機的市占率，特別是在175馬力以上的級距，並完成為滿足這些產品極為強勁的市場需求所需的額外產能措施。

The outboard product lineup expanded further in the quarter with the release of the 400-horsepower four-stroke. And you can be certain there'll be more exciting propulsion and P&A products to come this year.

舷外機產品陣容在本季隨著400匹馬力四行程機型的推出而進一步擴大。而且您可以確信，今年還會有更多令人振奮的推進系統以及P&A產品推出。

The integration of the Power Products business remains on track with strong demand for its OEM and aftermarket electrical products, leading to top line and earnings growth as planned. As a result, we anticipate net sales growth for this segment in the low double-digit percent range with a strong improvement in operating margin.

Power Products業務的整合仍按計畫推進，其OEM與售後市場電氣產品需求強勁，帶動營收與獲利如預期成長。因此，我們預期該事業部門的淨銷售額將以低雙位數百分比成長，且營業利益率將顯著改善。

Similarly, the Boat Group is executing against its operating and strategic priorities. In January, we announced plans for the formation of the Brunswick Fiberglass Boat Technology Center which will enable a centralized expert development team to efficiently design, engineer and launch innovative, industry-leading products for Boston Whaler and Sea Ray.

同樣地，Boat Group也正依其營運與策略優先事項執行。1月，我們宣布成立Brunswick玻璃纖維船艇技術中心（Brunswick Fiberglass Boat Technology Center）的計畫，該中心將建立一支集中式的專家開發團隊，能更有效率地為Boston Whaler與Sea Ray設計、工程開發並推出創新且業界領先的產品。

Just last week, we announced the establishment of the Brunswick Integrated Manufacturing Center which will be located at our manufacturing facility in Merritt Island, Florida. This facility is targeted to be fully functional by the fourth quarter of 2019 and will enable us to centralize certain operations to take advantage of economies of scale, enhance vertical integration and support the development and ongoing production of high demand boat models such as the Sea Ray 400 SLX which is sold out through 2019.

就在上週，我們宣布設立Brunswick整合製造中心（Brunswick Integrated Manufacturing Center），將座落於佛羅里達州Merritt Island的製造廠區。該設施目標於2019年第四季全面運作，將使我們得以集中部分作業以發揮規模經濟、強化垂直整合，並支援高需求船型（例如Sea Ray 400 SLX）的開發與持續生產；該船型2019年訂單已全數售罄。

In addition, in the second quarter, our Sea Ray and large Boston Whaler boats will begin shipping standard fit with our industry-leading connectivity solutions. These are just some of the many examples where we're combining technology and shared knowledge to improve operational efficiency and create products that improve the boating experience. We will continue to monitor retail market conditions and have the ability to gauge and modify production and pipelines as we progress through the prime selling season.

此外，在第二季，我們的Sea Ray與大型Boston Whaler船艇將開始以標準配備出貨，搭載我們業界領先的連網解決方案。這些只是眾多例子中的一部分，展現我們如何結合科技與共享知識，以提升營運效率並打造能改善航海體驗的產品。我們將持續監控零售市場狀況，並在進入主要銷售旺季的過程中，具備評估與調整產量及供應管線的能力。

We expect net sales growth for the year to be in the low single digit percent range with softness in international markets. In addition to taking steps to improve operational efficiency, we will focus on cost control in order to strengthen the margin profile of the segment.

我們預期全年淨銷售額成長將落在低個位數百分比區間，國際市場則較為疲弱。除採取措施提升營運效率外，我們也將聚焦成本控管，以強化該事業部門的利潤率結構。

In closing, we continue to be confident in our ability to deliver against our 2019 plan and our long-term targets. We expect continued strong performance at Mercury and steady Boat Group results with top line growth and strong operating leverage leading to consistent earnings growth across our marine portfolio. We will execute against our capital strategy and continue to look for M&A opportunities that advance our overall strategic objectives.

總結而言，我們仍對達成2019年計畫與長期目標的能力充滿信心。我們預期Mercury將持續強勁表現，Boat Group結果穩健；在營收成長與強勁營運槓桿的帶動下，我們的海事產品組合將實現一致的獲利成長。我們將依資本策略執行，並持續尋找能推進整體策略目標的併購（M&A）機會。

The relative health of the marine market will determine the full extent of our ability to improve margins in the Boat segment, but we remain steadfast in our commitment to margin accretion. We are engaging in enterprise-wide cost-reduction programs that will enable us to better align our cost structure with our new marine-focused operations while ensuring ample investment for growth.

海事市場的相對健康程度將決定我們在Boat事業部門提升利潤率的完整幅度，但我們對利潤率提升（margin accretion）的承諾依然堅定。我們正推動全企業的降本計畫，使我們能更好地將成本結構與新的海事聚焦營運對齊，同時確保有充足投資以支持成長。

We also understand the urgency and desired finality for the Fitness separation. We are focused on delivering an outcome as soon as possible that will maximize shareholder value and allow our marine portfolio to receive the attention and valuation it deserves.

我們也理解市場對Fitness分拆的急迫性與希望最終定案的期待。我們專注於盡快達成一個能最大化股東價值的結果，並讓我們的海事產品組合獲得其應有的關注與估值。

Finally, Bill, Ryan, and I look forward to seeing many of you on the road over the next 2 months as we embark on a busy marketing schedule.

最後，Bill、Ryan和我期待在接下來2個月的行程中與各位中的許多人見面，因為我們將展開一個繁忙的行銷行程安排。

I will now open the line for questions.

我現在開放電話線供提問。

(Operator Instructions) And our first question is from Craig Kennison from Baird.

(接線員指示) 我們的第一個問題來自Baird的Craig Kennison。

Bill, I wanted to go back to your discussion of an impairment charge related to Fitness. Did I hear that right that it places a book value of approximately $500 million and that it's based on progress you've made in terms of negotiating a value for that business?

Bill，我想回到你提到與Fitness相關的減損費用。我是否聽對了：這使帳面價值約為5億美元，而且是基於你們在就該業務協商估值方面所取得的進展？

Yes. It's based on factors other than just what we've seen there. There are still some traditional valuation techniques that we employ from an accounting perspective but you understood that correctly.

是的。這是基於不僅僅是我們在那裡所看到的因素。從會計角度來看，我們仍採用一些傳統的估值技術，但你的理解是正確的。

Okay. That's very helpful. And then just on the inventory front, looks like inventory weeks on hand is 1 week heavy. How quickly do you think you can resolve that and get back to maybe par versus last year?

好的。這非常有幫助。另外就庫存而言，看起來庫存週數（weeks on hand）偏高1週。你認為多快可以解決並回到與去年大致持平的水準？

Yes. Craig, it's Dave here. I think given the somewhat late start to the season that's kind of to be expected. I don't think it'll be an issue for us to work through it. We are very committed to pipeline management, as you know, and expect our year ending to be consistent with our prior forecast.

是的。Craig，我是Dave。我認為考量到本季開局稍晚，這種情況算是可預期的。我不認為我們在消化這部分會有問題。如你所知，我們非常重視供應管線管理，並預期年末結果將與我們先前的預測一致。

And Craig, in the materials, we provided some perspective back to 2015 which was kind of the last time we've seen this sort of weather dynamic play out and pipeline inventories are very consistent with where we saw them back in that time frame. So we're pretty relaxed where pipelines are today and feel that we're going to be able to handle whatever we need to do to manage them appropriately.

另外，Craig，在資料中我們提供了一些回溯到2015年的觀點，那大概是我們上一次看到這類天候動態發生的時候，而供應管線庫存與當時所見非常一致。因此，我們對目前的管線水位相當放心，並認為我們能夠處理任何需要採取的措施，以適當地加以管理。

And as a final question, as it relates to retail, if you look geographically where weather may have not been an issue, does it appear that trends are better in those markets? And then on a related note, has tax policy or the refund season had any impact on demand?

最後一個問題，關於零售端：若從地理區域來看，在天候可能不是問題的地方，趨勢看起來是否更好？另外相關地，稅務政策或退稅季是否對需求造成任何影響？

I think, Craig, the main factors that we -- obviously, we are seeing some weather-related slowness. I would say the other thing that we're seeing, we mentioned this earlier is, our premium categories had pretty healthy demand and some softness in the value categories. That plays very well for us.

我想，Craig，我們看到的主要因素是——顯然，我們確實看到一些與天候相關的放緩。我會說我們看到的另一件事，我們先前也提到過，就是我們的高端品類需求相當健康，而價值型品類則有些疲弱。這對我們非常有利。

We have a very healthy portfolio of aspirational brands. So we're very encouraged about their performance. I'd particularly call out Sea Ray which is doing extremely well with its new portfolio right now. So I think those are the 2 main dynamics that are playing out.

我們擁有非常健康的「向往型」品牌組合。因此，我們對它們的表現感到非常鼓舞。我特別要點名Sea Ray，目前以其新產品組合表現得非常出色。所以我認為這就是正在發生的兩個主要動態。

Our next question is from Gerrick Johnson from BMO Capital Markets.

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

What is noticeably absent from the slide deck is the page about boat unit retail. Can you talk about that?

投影片資料中明顯缺少的是關於船艇零售台數的那一頁。你能談談這點嗎？

Yes. And it's noticeably absent, if you like, because as I mentioned on the prior call and some other discussions, that's not really how we're managing the business. And it tends to be a bit distracting when we put that in there.

可以。而之所以「明顯缺少」，如果你這麼說的話，是因為如我在上一通電話會議以及其他一些討論中提到的，那並不是我們管理業務的方式。而且當我們把那頁放進去時，往往會有點分散焦點。

We're managing the Boat business for accretive margin and particularly to support and grow our aspirational brands. If you just want something directional, I think we're performing pretty much in line with what you've seen across the marketplace. But I'm trying to refocus the conversation around the Boat Group more on profitability and the performance of the premium brands.

我們管理Boat業務的目標是提升利潤率（具增益性），並特別是支持與成長我們的向往型品牌。如果你只是想要一個方向性的說法，我認為我們的表現大致與你在整體市場上看到的情況一致。但我正試著把關於Boat Group的對話重新聚焦在獲利能力以及高端品牌的表現上。

Understood. Great. And then on operating margin improvement of 80 basis points, how much of a headwind are you seeing in operating margin from your capital projects and your capital investments? And what kind of drag from those investments do you have built into your guidance?

了解。很好。另外，關於營業利益率改善80個基點，你們從資本專案與資本投資上，看到對營業利益率有多大的逆風？而在你們的財測指引中，已納入這些投資所帶來的多少拖累？

I would say we're seeing a bit of a tick up in depreciation which we've given guidance to and that doesn't end up changing the equation meaningfully. I'd say the other thing I'd point out, Gerrick, is when we're bringing capacity online, it typically ends up being more modern and more efficient overall than kind of what I would call our overall capacity in engines. So we end up seeing some fairly nice cost benefits there and efficiency benefits. Once we get the capacity brought online, we operate fairly well.

我會說我們確實看到折舊略有上升，我們也已就此提供指引，而這並不會對整體等式造成實質性的改變。另外我想指出的是，Gerrick，當我們把產能上線時，通常會比我所稱的引擎整體產能更現代化、整體效率也更高。因此我們會看到相當不錯的成本效益與效率效益。一旦產能上線，我們的營運表現通常相當良好。

And the other thing I'd point out is that as we look at the capacity plan, what we're doing now, we're adding more to what we've already integrated into our facilities and have experience with. A year ago, we were really bringing online a completely new assembly line and capability, along with a new product. This next phase of capacity is really just expanding on what we did in 2018. So the same sort of headwinds we faced in '18, we don't necessarily foresee the same sort of issues in '19.

我還想指出另一點：當我們檢視產能規劃、也就是我們目前正在做的事情時，我們是在既有已整合進我們廠房、且我們已有操作經驗的基礎上再增加產能。一年前，我們其實是在導入一條全新的組裝產線與能力，同時還搭配一個新產品。而這一階段的產能，基本上就是在擴大我們在2018年所做的事情。因此，2018年我們面臨的那類逆風，我們不一定預期2019年會遇到同樣的問題。

Our next question is from James Hardiman from Wedbush.

下一個問題來自Wedbush的James Hardiman。

So David, I guess your answer to that last question, it sort of begs the question when you say that your performance is in line with what we've seen across the marketplace. And I guess why I say that is because you've got the engine number which was pretty flattish and then you've got a SSI number which was down more like 7%. I guess maybe just a clarification. Is it consistent -- which one of those is it more consistent with?

David，我想你對上一題的回答，某種程度上引出了另一個問題：你說你們的表現與我們在整個市場上看到的情況一致。我之所以這麼說，是因為你們的引擎數據看起來相當持平，但SSI數據卻下降了大約7%。我想請你再澄清一下。你說「一致」——到底是比較接近哪一個數據所反映的情況？

Yes. I think we tend to give more credence at least at the moment probably to the outboard data until SSI is at least complete, but we're somewhere in that range. And we can push around on this here and there, but our performance is basically consistent with what's going on in the marketplace.

是的。我想我們目前可能會更重視舷外機（outboard）的數據，至少在SSI資料完整之前是如此，但我們大致落在那個區間內。我們可以在這裡或那裡做一些調整，但我們的表現基本上與市場上的情況一致。

And James, I appreciate the question and the request for clarification here. Maybe we'll find a better way of doing this in the future. I just want the -- I just want it clear that margin accretion and supporting our premium brands is my primary direction on how we're going to manage the Boat business. And of course, we will continue to monitor the performance of our brands on a unit sales basis but that is -- if you look at what's happening, particularly in the value segment, a lot of value OEMs use Mercury product.

James，謝謝你的提問，也謝謝你要求我們在這裡做澄清。也許未來我們會找到更好的方式來呈現這些資訊。我只是想把重點說清楚：就我們如何管理船艇（Boat）業務而言，我的首要方向是提升毛利（margin accretion）並支持我們的高端品牌。當然，我們會持續以銷量（unit sales）為基礎監控各品牌的表現，但如果你看目前的情況，特別是在價值型（value）區隔，很多價值型OEM都使用Mercury的產品。

So I think the area where I want to push around in terms of market share gain and margin improvement is really in the premium brands. So a unit of 420 Boston Whaler Outrage is not the same as a unit of 18-foot aluminum boat. I just want to make sure that we pay sufficient attention to that as we go forward with these discussions.

因此，我想在市占提升與毛利改善方面，我希望推動的重點其實是在高端品牌。一艘420 Boston Whaler Outrage的銷售單位，和一艘18英尺鋁製船的銷售單位並不相同。我只是想確保，隨著我們後續討論推進，我們會對這一點給予足夠的關注。

Yes. Completely agree. And that's a helpful explanation. I guess my sort of bigger question here. It sounds like weather was a factor. That shouldn't be a surprise to anybody that's been paying attention here. But it seems like you're -- just based on the lower sales guide that maybe you think it's a little bit more than that. So I just wanted to hone in on maybe what's changed.

是的。完全同意。這樣的說明很有幫助。我比較大的問題是：聽起來天氣是一個因素。對於一直有在關注的人來說，這不會讓任何人意外。但看起來你們——從較低的銷售指引來看——可能認為影響不只如此。所以我想更聚焦在：到底有哪些變化？

I thought the comment on the tariffs was an interesting one in that the benefit to tariffs is actually a little bit of a negative to the top line given some of those price increases were tied to the tariffs. Maybe tell us, let us know how significant that was. But sort of more broadly, what specifically is driving the top line reduction?

我覺得你提到關稅的評論很有意思：關稅帶來的好處，實際上對營收（top line）反而有一點負面影響，因為其中一些漲價是與關稅連動的。能否跟我們說明一下那部分的影響有多大？但更廣泛地說，究竟是哪些具體因素在推動營收下修？

Well, I think what you see is a couple of factors that we mentioned. There is -- certainly, weather is playing out. And certainly, premium is performing somewhat ahead of value, in general. The weather effect means a somewhat later start to the overall season which drives us to be somewhat more conservative in our projections.

我想你看到的是我們提到的幾個因素。確實，天氣的影響正在發酵。而且整體而言，高端（premium）的表現確實略優於價值型（value）。天氣效應意味著整體旺季的起步較晚，這也使我們在預測上採取更保守的態度。

And as we get into April, it's an important inflection point in the selling season. We don't exactly know yet where that is. I would tell you that the last couple of weeks seem encouraging which is very good news but I think we were just being prudent around the ways in which the balance of the year could play out, but this is really small stuff we're talking about at the moment.

進入四月後，這是銷售季節的一個重要轉折點。我們目前還不完全確定那個轉折點會落在哪裡。我可以告訴你，過去幾週看起來令人鼓舞，這是非常好的消息；但我想我們只是審慎看待今年剩餘時間可能的走勢。不過，就目前而言，我們談的其實都是很小的變動。

Our next question is from Greg Badishkanian from Citi.

下一個問題來自Citi的Greg Badishkanian。

It's actually Fred Wightman on for Greg. I think last quarter you had talked about some value softness in the market, but then when you gave the update down in Miami it sounded like that lower-end product had improved a bit. Can you just sort of walk through where that value category stands just given the softening that we've seen in SSI and some of your prior commentary?

其實是Fred Wightman代替Greg提問。我記得上季你們談到市場上價值型產品有些疲弱，但你們在邁阿密更新時，聽起來低端產品又改善了一些。考量到我們在SSI看到的趨緩，以及你們先前的評論，你能否說明一下目前價值型品類的狀況？

Yes. I think the way that things have developed through the year is -- and we saw -- as you know, the unit volumes are basically increasing kind of month-to-month as we go through the year. We saw quite a bit of choppiness in January as we went through the early parts of the boat show season which were reflected in the comments that we made in the full year earnings call in January.

好的。我想今年以來的發展是——如你所知，隨著一年推進，單位量（unit volumes）基本上是逐月增加的。在一月、也就是船展季節的前段，我們看到相當程度的波動，這也反映在我們一月的全年財報電話會議中的評論。

As the first quarter progressed, we saw stabilization and more of a normative trend from value. I just think we're not quite back there yet and we still see premium somewhat ahead. So I think as we get into Q2 we'll know, particularly the early part of Q2, we'll know somewhat more about how that's developing. I would say though that the trend is just becoming more predictable as we go month-by-month through the year.

第一季進行到後段時，我們看到價值型產品趨於穩定，走勢也更接近常態。我只是認為我們還沒有完全回到那個狀態，而且我們仍看到高端（premium）略為領先。因此，進入第二季後，特別是第二季前段，我們會更清楚這個趨勢如何發展。不過我會說，隨著一年逐月推進，趨勢正變得更可預測。

That's helpful. And then one of your larger dealers had talked about getting a bit more aggressive with promotional activity. When you guys look across the category, is that sort of consistent with what you're seeing or is it sort of isolated on a dealer-to-dealer basis?

這很有幫助。另外，你們一家較大的經銷商提到會在促銷活動上更積極一些。你們觀察整個品類時，這是否與你們看到的情況一致，還是說這比較是因經銷商而異、屬於個別現象？

I think as we get late in the -- as we have a slightly later start to the season, it's probably pretty natural that people want to get the season off to a good start and make sure that we pick up the demand as it comes through. I think the -- I don't think that I've seen uniform application of specific promotional tools, but we're certainly seeing it beyond the large channel partner of ours that I think you're referring to.

我想，當我們進入季節後段——由於本季開局稍晚——大家自然會希望把旺季開局做得更好，並確保在需求回流時能把它承接住。我認為——我沒有看到某一種特定促銷工具被一致性地全面採用，但我們確實看到，除了你提到的那家大型通路夥伴之外，其他地方也有類似作法。

Our next question is from Scott Stember from CL King.

下一個問題來自CL King的Scott Stember。

Just a follow-up question in the Boat business and current trends. A couple of days ago one of your competitors in the pontoon boat side, they talked about and it sounded as if the business was again a little more encouraging later in the quarter heading into April. And can you maybe just talk about that and flesh it out a little bit more? Just trying to get a sense, not at the weather.

我想針對船艇業務與目前趨勢追問一下。幾天前，你們在浮筒船（pontoon boat）領域的一位競爭對手提到，聽起來在本季後段、進入四月時，業務又變得更令人鼓舞一些。你能否談談這點並再多補充一些？我只是想了解一下整體感受，而不只是天氣因素。

And again, on the RV side, we're hearing the same thing that now that the weather is finally starting to clear up in the Midwest that you're starting to see people coming back to dealer lots. Can you maybe just dig into that a little bit more of where we stand right now? I know it's a little early, but maybe just give us a little more granular detail.

另外，在RV那邊，我們也聽到類似的說法：現在中西部的天氣終於開始好轉，你開始看到人們回到經銷商的展示場。你能否再深入談談我們目前所處的位置？我知道現在還有點早，但能否給我們更細一些的資訊？

Yes. So I would say that our order rates have picked up in the past couple of weeks which does indicate certainly a more encouraging trend I think relatively consistent with other people in the marketplace. I won't comment on individual other companies in the marketplace that might have slightly different dynamics to us. I would say that's a pretty consistent thought that the last couple of weeks have been somewhat encouraging.

好的。我會說，過去幾週我們的接單率（order rates）有所回升，這確實顯示出更令人鼓舞的趨勢，而且我認為這與市場上其他人的情況大致一致。我不會評論市場上其他個別公司，因為他們可能與我們有些不同的動態。但我會說，過去幾週確實相對令人鼓舞，這樣的看法相當一致。

Okay. And to the breaking out Fitness from the marine business in the quarter, I don't know if I saw it or not, but did you give what the earnings or the EPS for Fitness versus the marine business in this quarter so we can gauge where the second quarter could turn out?

好的。另外，關於本季將 Fitness 從海事業務中拆分出來，我不確定我是否有看到，但你們是否有提供本季 Fitness 相對於海事業務的獲利或 EPS，讓我們可以評估第二季可能會如何？

Yes. The difference between the 2 was about $0.05 a share, Scott. And embedded in that are really 3 pieces. There's a piece that's just pure Fitness operating earnings which is about $1 million. There's a piece that relates to tax rate differences between the way we look with and without Fitness. And given the differences between the 2 and the difference in timing of earnings between the 2, that contributes to that $0.05.

有。Scott，兩者之間的差異大約是每股 0.05 美元。而其中其實包含 3 個部分。有一部分是純粹的 Fitness 營運獲利，大約 100 萬美元。有一部分與我們在納入與不納入 Fitness 時所採用的稅率差異有關。而考量兩者之間的差異以及獲利認列時點的差異，這些共同造成了那 0.05 美元。

And then there's some cost allocations that -- under a discontinued operations basis that we're not able to attribute to Fitness so it ends up hurting the marine business a little bit. And that's kind of the 3 factors that contribute to that $0.05. I think that's a reasonable way to look at Q2.

然後還有一些成本分攤——在停業單位（discontinued operations）的基礎下，我們無法將其歸屬到 Fitness，因此最後會讓海事業務看起來稍微受損。這大概就是造成那 0.05 美元差異的 3 個因素。我認為用這種方式來看第二季是合理的。

Our next question is from Joe Altobello from Raymond James.

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

I guess a first quick housekeeping question going back to Fitness real quick. The EBITDA outlook for this year, correct me if I'm wrong, I think was about $50 million to $60 million. And it seems like given the guide that you gave this morning which is unchanged, that's unchanged as well?

我想先快速問一個例行問題，回到 Fitness。今年的 EBITDA 展望，如果我沒記錯，大約是 5,000 萬到 6,000 萬美元。而看起來依照你們今天早上給的指引（未變），那這個也同樣沒有改變？

That's correct.

沒錯。

Okay. Great. And then on weather, again, we've heard this from other companies so not a surprise. Is there a chance that some of the sales that you may have missed in the first quarter because of weather get recouped in Q2? And I'm curious if you could remind us what your experience was back in 2015 when you saw the same pattern?

好的。很好。接著談天氣，我們也從其他公司聽到過，所以不意外。第一季因天氣而錯失的一些銷售，有沒有可能在第二季補回來？另外也想請你們提醒一下，回到 2015 年你們看到同樣型態時的經驗是什麼？

Yes. I think there is a good chance that some of the sales that we missed early season will be recouped in Q2. Certainly, the delay in getting boats in the water particularly just delays the point at which a lot of P&A sales occurs. And most of those P&A sales happen when the boat goes in the water as opposed to a particular point in time.

有。我認為第一季初期錯失的一些銷售，很有機會在第二季補回來。當然，船隻下水時間延後，特別是會延後許多 P&A 銷售發生的時間點。而多數 P&A 銷售是在船下水時發生，而不是在某個特定時間點。

So we're confident in that. And also, I'm pretty confident in recovering boat sales as well. I think we still have plenty of the season left. It's a little bit of a later start. But providing we have a good season, I don't see why we don't recover a significant portion of those sales.

所以我們對此有信心。而且我也相當有信心能把船艇銷售補回來。我認為這一季的旺季還有很長一段。只是開季稍晚。但只要我們有個好的旺季，我看不出為什麼我們不能把相當大一部分的銷售補回來。

Okay. But the downward guidance revision this morning, I guess, is some conservatism?

好的。但今天早上把指引往下修，我想，是出於一些保守考量？

Yes. I think we're just being a bit prudent. The good news in the guidance that I think we provided now is, yes, we see a later start to the season. So we've taken the revenue guidance down. We just took it down 1 point essentially. But we -- I think what you see is that we have plenty of levers in the business and very committed to earnings.

是的。我想我們只是稍微更審慎一些。我認為我們現在提供的指引有個好消息是：是的，我們看到旺季開季較晚。所以我們把營收指引下調。基本上只下調了 1 個百分點。但我們——我想你們看到的是，我們在業務上有很多槓桿，而且對獲利非常投入。

So I think the good news from what we did is to say that, count on us for earnings. And we will try and be as straightforward as we possibly can about where we see possible, different revenue conditions than we saw previously. But I would not overweight that. I think it's just us being prudent as we normally are, I think.

所以我認為我們所做的好消息是：獲利可以放心交給我們。而我們也會盡可能坦率地說明，我們看到的營收情境可能與先前不同之處。但我不會過度解讀這件事。我認為這只是我們一如往常地保持審慎。

Our next question is from Tim Conder from Wells Fargo Securities.

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

Gentlemen, could you just give us your expectations for the U.S. market in units and dollars? And then maybe your thoughts on a global basis here for '19, your updated expectations?

各位先生，能否請你們提供對美國市場在銷量（units）與金額（dollars）方面的預期？另外，對於 2019 年全球市場，你們更新後的預期看法是什麼？

Yes. Tim, I'll take that one. So we've got, I'd say, implied in our guidance on a unit basis for the U.S. low single-digit unit growth. And again, remember, based on the comments that we made on the call and some of the Q&A here, that is all focused on what we would consider more of the value end of the market.

好的。Tim，這題我來回答。就美國的銷量而言，我會說我們的指引隱含的是低個位數的銷量成長。另外請記得，根據我們在電話會議以及這裡 Q&A 的評論，這主要聚焦在我們認為較偏價值端的市場。

I would say our expectation for dollars in the U.S. is still kind of a mid-single-digit dollar growth rate. Globally, I'd say based on some of the weakness that we've seen in Canada and Europe as a result of the tariff impact and other factors, we expect our global units to be down low single digits. And again, I would expect dollar growth on a global basis to outperform units to a similar degree that we're seeing in the U.S.

我會說我們對美國金額的預期仍大約是中個位數的金額成長率。在全球方面，我會說基於我們在加拿大與歐洲看到的一些疲弱（受關稅影響及其他因素所致），我們預期全球銷量會低個位數下滑。同樣地，我預期全球的金額成長會像美國一樣，以類似幅度優於銷量表現。

Okay. Okay. Okay. That's helpful. And then the low-end boats here, and clearly, weather impact and it's units and that impacts things, especially in the Midwest. But are you seeing or hearing any pricing resistance as part of the equation?

好的。好的。好的。這很有幫助。另外，關於低端船艇，很明顯天氣會影響、也會影響銷量，特別是在中西部。但你們是否看到或聽到任何定價阻力也是其中一部分原因？

It's possible that that's part of the equation. Sometimes it's difficult to deconstruct exactly what's going on there. I wouldn't say that it's a dominant theme. I think the theme at the moment is much more of a weather effect.

有可能那也是其中一部分原因。有時候很難精確拆解到底發生了什麼。但我不會說那是主導性的主題。我認為目前的主題更多是天氣影響。

Okay. Okay. And then, gentlemen, on the Canadian side, the wholesale dynamic seemed where you shipped a little more to the U.S. in Q4 and maybe very early Q1. And then as you moved into the latter part of January and so forth, the Canadian dealers started taking it but maybe with some assistance from all OEMs.

好的。好的。另外，各位先生，談到加拿大那邊，批發端的動態似乎是你們在第四季以及可能在第一季非常早期多出了一些出貨到美國。然後到了 1 月下旬之後，加拿大經銷商開始進貨，但可能需要所有 OEM 的一些協助。

Any quantification as to the level of tariff assistance there that you provided? I think, Bill, you may have built that into some of the tariffs part but just maybe specifically? And then from the perspective of, if the tariffs are repealed, could that be recoverable?

你們能否量化一下你們提供的關稅協助水準？Bill，我想你可能已把它納入關稅相關的部分，但能否更具體一點？另外，從另一個角度，如果關稅被撤銷，這部分是否有可能回收（recover）？

I -- there's not -- the pricing assistance not necessarily a recovery mechanism built in for that. I would say it's a fairly small impact on our profitability in Q1 given the assistance that we provided to Canadian dealers.

我——這種價格協助不一定有內建所謂的回收機制。我會說，就我們在第一季提供給加拿大經銷商的協助而言，對我們第一季獲利的影響相當小。

And I'd point out, remember in the back half of last year, we -- Canadian dealers really curtailed stocking activity in the second half and re-engaged in stocking activity, it was actually higher than it was a year ago. But if you measure that over the last 9 months, it's down reflective of what the market expectation is.

另外提醒一下，記得在去年下半年，我們——加拿大經銷商在下半年大幅縮減備貨活動；而當他們重新開始備貨時，實際上比一年前還高。但如果你用過去 9 個月來衡量，備貨是下降的，反映了市場預期。

So this Canadian dynamic is a bit of a timing issue. And you're correct in saying that some of the stocking that we would have done Canadian dealers was shifted to U.S. dealers in the back half of last year.

所以這個加拿大的動態有點是時點問題。而你說得沒錯，去年下半年我們原本會給加拿大經銷商的一部分備貨，被轉移到美國經銷商。

Okay. Okay. So the Canadian market end expectations have maybe gotten a little bit weaker and then it's just the timing of when they took the...

好的。好的。所以加拿大市場終端需求的預期可能稍微轉弱了一些，然後只是他們進貨時點的問題，他們拿了那個……

No. I'd say our market expectations are unchanged. I would just say the timing is influencing how it's rolling through the wholesale activity and the international sales numbers that we posted.

不。我會說我們對市場的預期沒有改變。我只想說，時點正在影響它如何反映在批發活動以及我們公布的國際銷售數字上。

Okay. Last question, gentlemen. Dave, given your strong engine demand, you're ramping up more capacity obviously as you talked about, has that limited -- it appears it has, but just want to make sure my perception is right -- your ability to pursue international engine share opportunities? And then when do you expect to be able to -- would that be more a 2020 opportunity?

好的。各位先生，最後一個問題。Dave，鑑於你們強勁的引擎需求，你們如同先前提到的，顯然正在提升更多產能；這是否限制了——看起來是有，但我想確認我的理解是否正確——你們追求國際引擎市占機會的能力？另外，你們預期何時能夠——這會比較像是2020年的機會嗎？

I think background here is clear. We have extremely high demand, particularly for the new family of engines, the 175- through 300-horsepower engine that we just introduced or introduced in 2018. That very high demand continues both domestically and internationally.

我想這裡的背景很清楚。我們的需求極高，特別是針對我們剛推出的新引擎家族，也就是175到300馬力的引擎，我們是在2018年推出或導入的。這個非常高的需求在國內與國際市場都持續存在。

We're really only just picking up as well some of the excitement around the 400-horsepower mainline engine that we introduced just a few months ago. So the high horsepower engine range is very exciting in terms of domestic and international demand. And once we get more capacity online at the end of this year, in Q4, I'm very excited about what's going to happen.

我們也才剛開始感受到幾個月前推出的400馬力主力引擎所帶來的一些熱度。因此，在高馬力引擎區間，無論是國內或國際需求都非常令人振奮。而一旦我們在今年底第四季把更多產能上線，我對接下來會發生的事情感到非常興奮。

I would say that internationally, below kind of -- 150-horsepower and below, I think we're in a good balance of supply and demand that we can certainly satisfy and begin to use some of that to gain international market share. And I think I mentioned earlier in the statements that overall engine availability, particularly in those 150-and-below categories, is now beginning to come online and help us with market share in Europe and other international areas.

我會說在國際市場方面，大概在150馬力及以下的區間，我認為供需之間維持得很平衡，我們當然能夠滿足需求，並開始利用其中一部分來提升國際市占。而且我想我先前在說明中提到，整體引擎供應量，特別是在150馬力及以下的類別，現在正開始到位，並協助我們在歐洲及其他國際地區提升市占。

Our next question is from Michael Swartz from SunTrust.

下一個問題來自SunTrust的Michael Swartz。

Just wanted to touch on the new integrated boat facility project that you're undertaking down at Merritt Island. Just trying to understand a little bit more around maybe the timing of when we should see some of the benefits from that.

我想談一下你們在Merritt Island正在推動的新整合式船艇設施專案。我想更了解一下，我們大概何時能看到這個專案帶來的一些效益。

Is that more of a capacity play or is that more of a support product development innovation type project? And then the other question I would have on that is, when you gave guidance in January, were the costs of that project embedded in that guidance?

這比較是產能擴充的布局，還是比較偏向支援產品開發創新類型的專案？另外我還有一個問題是，你們在1月給出指引時，這個專案的成本是否已經包含在該指引之中？

The purpose really -- there are a couple of purposes for that new, integrated manufacturing center. It isn't really a development facility, although there may be a small amount of development there. Essentially what we're facing is, particularly as we introduce new models from Sea Ray and to some extent from Whaler, we need quite a bit of flex capacity as we begin to fill the pipeline with the new model.

這個新的整合式製造中心的目的其實——有幾個目的。它並不算是一個開發設施，雖然那裡可能會有少量的開發活動。基本上我們面臨的是，特別是當我們推出Sea Ray的新機型，以及某種程度上Whaler的新機型時，當我們開始用新機型把通路管線填滿時，我們需要相當多的彈性產能。

Later in the life of the model, the demand pattern becomes more normalized. But right now, we are producing essentially all of the 400 SLX Sea Ray outboard models in that new facility because we have huge demand and backlog through the whole year.

在機型生命週期的後期，需求型態會變得更正常化。但目前，我們基本上把所有400 SLX Sea Ray舷外機型都放在那個新設施生產，因為我們全年都有龐大的需求與積壓訂單。

We could even satisfy higher demand so we're going to be upping the number of units of the 400 SLX coming out of that facility. But there are other boats, particularly larger boats, where that happens as well where we need flex capacity as we introduce the model and potentially through some of its life. And this facility is an extremely good facility for accommodating that.

我們甚至可以滿足更高的需求，所以我們將提高該設施所產出的400 SLX數量。但也有其他船型，特別是較大型的船，也會出現同樣情況：在導入機型以及可能在其生命週期的某些階段，我們需要彈性產能。而這個設施在容納這種需求方面非常合適。

A couple of other things that are going on in there that I think are really interesting, especially as you look at what's made Mercury really successful around vertical integration. And that is, we have an opportunity to produce a number of parts and subsystems that are currently produced outside Brunswick inside Brunswick more efficiently and more cost effectively. And those can be systems and small parts, if you like.

另外還有幾件正在那裡進行的事情，我覺得非常有意思，尤其是當你看Mercury在垂直整合方面為何能如此成功。也就是說，我們有機會把目前在Brunswick外部生產的一些零件與子系統，改為在Brunswick內部生產，而且能更有效率、更具成本效益。這些可以是系統或小零件之類的。

So we're beginning that process. For example, we're in-sourcing right now some of the upholstery for Boston Whaler that we would previously have outsourced. So what you'll see really in that facility is an ability for us to bring in-house, at lower cost, some of the things that we were previously purchasing and an ability to ramp up and flex up capacity for high-demand models.

所以我們正開始這個流程。例如，我們目前正把先前外包的Boston Whaler部分內裝（upholstery）改為內製。因此你會在那個設施看到的，主要是我們能以更低成本把一些先前採購的項目收回內部製作，以及能為高需求機型提升並彈性調整產能的能力。

It's really important that we bring this online. It's worked really well with the 400 SLX. We anticipate similar need for incremental flex capacity as we bring on other new models from Sea Ray, particularly the bigger models, and also from Boston Whaler. So that is the full -- that is kind of the rationale for the facility.

讓這個設施上線非常重要。它在400 SLX上運作得非常好。當我們導入Sea Ray的其他新機型、特別是較大型機型，以及Boston Whaler的新機型時，我們預期也會有類似的額外彈性產能需求。所以這就是——這大概就是這個設施的理由。

I'm very excited about it because we end up, and you may have heard this from some of our channel partners where we get these great new models out and then we can't quite hit the demand. And we probably miss some units in the early part of the cycle which I don't want to happen. So that's really the purpose of the new facility.

我對此非常興奮，因為最後我們會——你可能也從一些通路夥伴那裡聽過——我們推出很棒的新機型，但卻無法完全滿足需求。而我們可能在週期初期少賣了一些台數，這是我不希望發生的。所以這就是新設施的目的。

The facility is now kind of essentially transferred, I think, almost completely onto the books of Sea Ray right now. So it is a bit of a negative in the first quarter until we get the facility more utilized. By the time we get to the fourth quarter of this year, it will be much more fully utilized and will begin to enhance margins.

我想這個設施現在基本上已經——幾乎完全——轉到Sea Ray的帳上了。因此在第一季，在我們讓設施的利用率提高之前，會有一點負面影響。等到今年第四季時，它的利用率會高得多，並將開始提升毛利率。

Okay. And it was embedded in your guidance back in January, correct?

好的。而且它在你們1月的指引中已經包含了，對嗎？

I think it was.

我想是的。

Yes. We envisioned some of this. I'd say, we probably have a bit more revenue opportunity than we would have envisioned, but there may be a bit more cost as well that's envisioned in that.

是。我們當時已經預想到了其中一部分。我會說，我們可能有比原先預想更多的營收機會，但同時也可能會有比原先預想更多的成本包含在其中。

I think I'd point out this is an existing facility with an existing workforce. When you think about the capital implications, it's extremely efficient for us to utilize this asset and it's extremely efficient for us to utilize the workforce that we have available to start incorporating new activities.

我想要指出的是，這是一個既有設施，且有既有的員工隊伍。當你考量資本支出（capex）的影響時，對我們而言，運用這項資產非常有效率；同樣地，運用我們現有可用的人力並開始納入新的作業活動，也非常有效率。

Maybe one last point on it. I forgot to address your point about development. So I would say the major development asset that already existed in that facility and that we will be retaining is, we have 2 very large and contemporary milling machines that essentially mill the original hull molds and deck molds for boats.

也許再補充最後一點。我剛剛忘了回應你關於開發的問題。所以我會說，該設施原本就存在、而且我們會保留的主要開發資產是：我們有兩台非常大型且現代化的銑床，基本上用來銑削船艇的原始船體模具與甲板模具。

But having those internally helps us speed up product development a lot. And we're actually also now beginning to take on board some outside work for other OEMs which is obviously helpful in defraying the cost of the facility.

但把這些留在內部能大幅加快我們的產品開發速度。而且我們現在也開始承接一些外部工作，替其他OEM代工，這顯然有助於分攤該設施的成本。

Our next question is from David MacGregor from Longbow Research.

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

David, you had mentioned in response to a previous question that you wanted to shift the conversation around boats away from retail and more towards the profitability of the portfolio. And so I'm just wondering, are you prepared at this point to start talking about how much of the portfolio is not profitable today and how much could be profitable a year from now and what's needed to drive that flip?

David，你在回應先前一個問題時提到，你希望把關於船艇的討論從零售端轉移開，更多聚焦在產品組合的獲利能力。所以我想問的是，你們現在是否準備開始談談：目前產品組合中有多少是不獲利的，以及一年後有多少可能轉為獲利，還有需要什麼來推動這個轉變？

Yes. At the moment, the whole portfolio is profitable. Obviously, the profitability varies from brand to brand. But I think -- the whole portfolio is profitable and I think that's a significant change from where we were in the past. So we have made huge strides with a number of our boat brands to balance the earnings that we get for the Boat Group much more evenly across our various brands. Obviously, very high contributors like Boston Whaler and now Sea Ray is coming up very nicely.

是。目前整個產品組合都是獲利的。當然，各品牌之間的獲利能力有所不同。但我認為——整個產品組合都是獲利的，我認為這相較於我們過去的狀況是一個重大的改變。因此，我們在多個船艇品牌上取得了巨大進展，使船艇事業群（Boat Group）的獲利能更平均地分布在各個品牌之間。顯然，像Boston Whaler這樣的高貢獻者，以及現在Sea Ray也正非常漂亮地提升中。

But I think that what we're seeing is the benefits of operational excellence across the group are probably higher than anybody thought they could be. We have facilities that are operating at incredibly high productivity and efficiency levels and facilities that have been maybe the subject of consolidation sometime in the past and where the productivity wasn't fully worked out.

但我認為，我們所看到的是，整個集團在營運卓越方面所帶來的效益，可能比任何人原先以為能達到的還要高。我們有一些廠區的生產力與效率水準高得驚人；也有一些廠區可能在過去某個時點曾是整併的對象，而其生產力尚未完全發揮出來。

So that is a huge effort right now to make sure that we have everything in the Boat Group operating at equivalent levels of productivity and efficiency. And we're using common resources to make that happen.

因此，當前有一項非常龐大的工作，就是要確保船艇事業群（Boat Group）內所有單位都能以同等的生產力與效率水準運作。而我們也在運用共用資源來促成這件事。

I want to elevate the margin of that whole group. I think there's tremendous potential in there. We have great brands, and we do have pricing power across a lot of our brands, but I never want to use that without making sure that we have corresponding improvements in cost control and operational efficiency more uniformly across that group.

我希望提升整個事業群的利潤率。我認為其中有巨大的潛力。我們擁有很棒的品牌，而且在許多品牌上確實具備定價能力，但我絕不希望在未確保該事業群能更一致地同步改善成本控管與營運效率之前，就動用這種定價能力。

And David, I would just add to your comments -- to Dave's comments that, if you think about the profitability of the businesses, some of the businesses that we have that have lower-margin profiles are also ones that have very low investment requirements and are, I would say, some of the less -- don't carry the same levels of variability that we might see in other parts of the portfolio.

另外，David，我也想補充你——補充 Dave 的評論：如果你從各項業務的獲利能力來看，我們有些利潤率較低的業務，同時也是投資需求非常低的業務，而且我會說，這些業務的波動性也較低——不會像我們在投資組合其他部分可能看到的那種波動程度。

So as I think about the ROIC implications of the portfolio, I think we've got things pretty well balanced across the profile. There are obviously places where we believe we can do better and are striving to do better, but there's really just no glaring elements of the portfolio that don't match the investment return equation either currently or on what a future opportunity basis would be.

因此，當我思考投資組合對 ROIC 的意涵時，我認為我們在整體輪廓上取得了相當好的平衡。當然，有些地方我們相信可以做得更好，也正努力做到更好，但投資組合中並沒有任何明顯的部分，無論就目前或就未來機會的角度而言，會不符合投資報酬的方程式。

Our next question is from Joseph Spak from RBC Capital Markets.

我們的下一個問題來自 RBC Capital Markets 的 Joseph Spak。

I guess just to be a little bit more explicit about this. With the tariff lowered but EPS maintained is the delta just a result of sort of lower flow-through on volume or is there something else that's offsetting that as well?

我想更明確一點問：關稅下調但 EPS 仍維持不變，這個差額（delta）只是因為在銷量上的流轉率（flow-through）較低所致，還是也有其他因素在抵銷？

Yes. Joe, it's a little bit. So the adjustments that we've made, we've gotten a little bit more aggressive on the cost side of the equation. We've taken a little bit out due to volume. And that was covered by some of the cost actions that I talked about as well as the tariff benefits.

是的。Joe，確實是多種因素一起。我們所做的調整，是在成本這一端採取了更積極一些的作法。我們也因為銷量而略作下修。而這部分由我提到的一些成本行動以及關稅效益所抵銷。

I think if you think about the implications of the 1 point that we took out and you start to think about what the leverage on that might be and the earnings implications, we made just a slight tweak to cost and the tariff number is very visible at $7 million. So that kind of gives you a feel for what the moving pieces were.

我想，如果你去思考我們下調的那 1 個百分點所代表的意涵，再去想其可能帶來的槓桿效果與獲利影響，我們只是對成本做了非常小幅的調整，而關稅數字在 700 萬美元上非常明顯。所以這大致能讓你感受到各個變動因素是什麼。

Yes. Okay. That's helpful. I just want to make sure there was sort of nothing on the absorption. And then...

是的。好的。這很有幫助。我只是想確認在吸收（absorption）方面沒有什麼因素。然後……

I think the net of interest and taxes which both changed is probably a bit of a net negative as well. We didn't necessarily call it out in the script, but those are 2 factors that changed a bit that created a bit more headwinds for us on a net basis.

我認為利息與稅負兩者的淨額——這兩項都有變動——整體來看可能也是略為負面。我們不一定在講稿中特別點出，但這兩個因素確實有些變化，從淨額角度來看，對我們造成了一些額外的逆風。

Okay. And then just secondly, the commentary in the slides and the remarks about confidence of a sale of Fitness as expeditiously as the second quarter. So are we all in the sale camp now? And then also if that's true, do you have any idea about how this impairment impacts any potential tax bill?

好的。第二點，投影片與談話中提到，對於 Fitness 能夠最快在第二季完成出售很有信心。所以我們現在都站在出售陣營了嗎？另外，如果是這樣，你們是否知道這次減損會如何影響任何潛在的稅負？

Well, there's no impact on tax, whatever the net tax implications we pay relative to a sale. I think when I think about potential tax leakage and stuff, obviously there's elements of structure that get involved, but we're not anticipating a meaningful amount of tax leakage associated with a sale.

嗯，這對稅務沒有影響；不管怎樣，稅務影響取決於我們相對於出售所需支付的淨稅額。我想，當我思考可能的稅務流失（tax leakage）等問題時，顯然會牽涉到一些交易架構的元素，但我們預期與出售相關的稅務流失不會是顯著的金額。

And I would point out too that the proceeds, we made the point on the call, but I just want to emphasize, we have not embedded any sort of upside opportunity related to the completion of the sale in our April guidance here. The $4.50 to $4.70 does not include any implications of applying those proceeds to either accelerate debt, re-engage in share repurchases or any incremental M&A that we might get done between now and the end of the year. So none of those factors are in our guidance.

我也想指出，關於出售所得款項——我們在電話會議中提過，但我想再強調一次——我們在這次 4 月的指引中，並未納入任何與完成出售相關的上行機會。每股盈餘 4.50 至 4.70 美元並未包含將該等款項用於加速償債、重新啟動庫藏股回購，或在現在到年底之間可能完成的任何額外併購（M&A）所帶來的影響。因此，這些因素都不在我們的指引之內。

That's fair. But the spin is a clear option too at this point if something falls through?

這很合理。但如果有事情告吹，分拆（spin）在此時也是一個明確的選項，對嗎？

We're maintaining everything we need to maintain preparedness for that option. Clearly, as we mentioned, the vast majority of our focus right now is on the sale process. And we're very confident that we can proceed with that.

我們會維持一切必要的準備，以確保該選項的可行性。很明顯地，如同我們提到的，我們目前絕大多數的重點都放在出售流程上。而我們非常有信心可以推進並完成。

Thank you. At this time, we would like to turn the call back over to Dave for some concluding remarks.

謝謝。此時，我們想把電話會議交回給 Dave 做結語。

Yes. Well, thank you everybody for participating. We always appreciate this great discussion. I would tell you that we're very confident in our business. We're putting some of the pieces in place here that might not seem so important right now but will be important for our growth in the future.

是的。非常感謝各位的參與。我們一向很感謝這樣精彩的討論。我想告訴各位，我們對自身業務非常有信心。我們正在把一些拼圖放到位——這些事情現在看起來可能沒那麼重要，但對我們未來的成長會很重要。

And certainly, the market is a little bit softer as we start the year, but there are some really encouraging trends. And as you saw, we believe the market will be very constructive for the balance of the year. So I'm excited about the way that the business will progress. I'm excited about some of the initiatives.

當然，年初市場稍微偏弱一些，但也有一些非常令人鼓舞的趨勢。而如各位所見，我們相信今年剩餘時間市場將會非常具有建設性。因此，我對業務推進的方式感到振奮。我也對一些推動中的計畫感到振奮。

I think you will see some nice things as soon as Q2 in terms of product and other actions that we're taking. That will be very exciting for us and I think will be very exciting for our investors as well. And we look forward to going on the road and discussing all this in a little more detail in a few weeks' time. And thank you and have a good rest of the day.

我想你們最快在第二季就會看到一些很不錯的成果，包含產品以及我們正在採取的其他行動。這對我們而言會非常令人興奮，我認為對投資人而言也會非常令人興奮。我們也期待在幾週後外出路演，並就這些內容做更深入的討論。謝謝各位，祝各位今天剩餘時間愉快。

Ladies and gentlemen, thank you for your participation in today's conference. This concludes the program. You may now disconnect.

各位女士、先生，感謝各位參與今天的會議。本次議程到此結束。您現在可以掛線。