博格華納 (BWA) 2024 Q3 法說會逐字稿

Good morning. My name is Connie, and I will be your conference facilitator. At this time, I would like to welcome everyone to the BorgWarner 2024 third-quarter results conference call. (Operator Instructions)

早安.我叫康妮，我將擔任你們的會議主持人。此刻，我歡迎大家參加博格華納2024年第三季業績電話會議。（操作員說明）

I would now like to turn the call over to Patrick Nolan, Vice President of Investor Relations. Mr. Nolan, you may begin your conference.

我現在想將電話轉給投資者關係副總裁派崔克諾蘭。諾蘭先生，您可以開始會議了。

Thank you, Connie, and good morning, everyone. Thank you for joining us today. We issued our earnings release earlier this morning. It's posted on our website, borgwarner.com, both on our homepage and on our Investor Relations homepage.

謝謝你，康妮，大家早安。感謝您今天加入我們。我們今天早上早些時候發布了收益報告。它發佈在我們的網站 borgwarner.com、我們的主頁和投資者關係主頁上。

With regard to our Investor Relations calendar, we will be attending multiple conferences between now and our next earnings release. Please see the Events section of our Investor Relations homepage for a full list.

關於我們的投資者關係日曆，從現在到下一次收益發布，我們將參加多次會議。請參閱我們投資者關係主頁的活動部分以獲取完整清單。

Before we begin, I need to inform you that during this call, we may make forward-looking statements, which involve risks and uncertainties as detailed in our 10-K. Our actual results may differ significantly from the matters discussed today. During today's presentation, we will highlight certain non-GAAP measures in order to provide a clearer picture of how the core business performs and for comparison purposes with prior periods.

在開始之前，我需要通知您，在本次電話會議中，我們可能會做出前瞻性陳述，其中涉及 10-K 中詳細說明的風險和不確定性。我們的實際結果可能與今天討論的問題有很大不同。在今天的演示中，我們將重點介紹某些非公認會計準則衡量標準，以便更清晰地了解核心業務的表現並與先前的時期進行比較。

When you hear us say on a comparable basis, that means excluding the impact of FX, net M&A, and other noncomparable items. When you hear us say adjusted, that means excluding noncomparable items. When you hear us say organic, that means excluding the impact of FX and net M&A.

當您聽到我們說在可比較基礎上時，這意味著排除外匯、淨併購和其他不可比較項目的影響。當您聽到我們說調整時，這意味著排除不可比較的項目。當您聽到我們說有機時，這意味著排除外匯和淨併購的影響。

We will also refer to our incremental margin performance. Our incremental margin is defined as the organic change in our adjusted operating income divided by the organic change in our sales. Our all-in incremental includes our planned investment in R&D, any impact from net inflationary items, and other cost items.

我們也將參考我們的增量利潤表現。我們的增量利潤率定義為調整後營業收入的有機變化除以銷售額的有機變化。我們的全部增量包括我們計劃的研發投資、淨通膨項目的任何影響以及其他成本項目。

Lastly, we refer to our growth compared to our market. When you hear us say market, that means the change in light and commercial vehicle production weighted for our geographic exposure. Please note that we've posted today's earnings call presentation to the IR page of our website. We encourage you to follow along with these slides during our discussion.

最後，我們參考我們與市場相比的成長。當您聽到我們說市場時，這意味著根據我們的地理風險加權的輕型和商用車生產的變化。請注意，我們已將今天的財報電話會議簡報發佈到我們網站的投資者關係頁面上。我們鼓勵您在我們的討論中遵循這些幻燈片。

With that, I'm happy to turn the call over to Fred.

這樣，我很高興將電話轉給弗雷德。

Thank you, Pat, and good day, everyone. I'm very pleased to share our results for the third quarter and provide an overall company update, starting on slide 5.

謝謝你，帕特，大家好。我很高興分享我們第三季的業績，並從幻燈片 5 開始提供公司的整體最新情況。

At more than $3.4 billion, our Q3 organic sales were down about 5% year over year, modestly outperforming a 6% decline in our market. Year to date, we have outgrown our market by about 270 basis points. This demonstrates the resiliency of our technology-focused portfolio that we believe is positioned to outgrow the market production. We secured multiple new product awards for both foundational and eProducts, which we believe further support our long-term profitable growth.

我們第三季的有機銷售額超過 34 億美元，年減約 5%，略優於市場 6% 的降幅。今年迄今為止，我們的成長速度已超出市場約 270 個基點。這證明了我們以技術為中心的產品組合的彈性，我們相信該產品組合的成長速度將超過市場產量。我們的基礎產品和電子產品獲得了多個新產品獎項，我們相信這將進一步支持我們的長期獲利成長。

Turning to our bottom line for the quarter, we delivered a very strong 10.1% margin, which was 50 basis points higher than last year. We also delivered earnings per share of $1.09, which was $0.11 higher than prior year. This strong underlying operational performance was primarily driven by our focus on cost controls across the business.

談到本季的利潤，我們實現了 10.1% 的強勁利潤率，比去年高出 50 個基點。我們還實現了每股收益 1.09 美元，比上年增加 0.11 美元。這種強勁的基礎營運表現主要是由於我們對整個業務成本控制的關注所推動的。

Our strong year-to-date margin and cash performance enabled us once again to increase our full-year margin and earnings guidance, as Craig will detail later. Lastly, we remained focused on the efficient deployment of our capital and completed our planned 2024 repurchase of $400 million of BorgWarner stock.

我們年初至今強勁的利潤率和現金表現使我們能夠再次提高全年利潤率和盈利指引，克雷格稍後將詳細介紹。最後，我們仍然專注於資本的有效部署，並完成了計劃於 2024 年回購 4 億美元的博格華納股票。

Now let's look at some new product awards on slide 6. First, BorgWarner has furthered its business with a major North American OEM by securing the extensions on two transfer cases for full-size pickups. BorgWarner will supply two types of transfer cases to the OEM for use on three platforms.

現在讓我們來看看幻燈片 6 上的一些新產品獎項。首先，博格華納透過確保兩個全尺寸皮卡分動箱的擴展，進一步拓展了與北美一家主要原始設備製造商的業務。博格華納將向原始設備製造商提供兩種類型的分動箱，用於三個平台。

Start of production for two of the platforms are slated for 2027, with the third expected to begin in '28. We have supplied this OEM with transfer cases for over 40 years. We believe this extension solidify our team's reputation and the proven architecture, field performance, and quality of our products.

其中兩個平台預計於 2027 年開始生產，第三個平台預計於 2028 年開始生產。我們為這家 OEM 提供分動箱已有 40 多年的歷史。我們相信，這次擴展鞏固了我們團隊的聲譽以及經過驗證的架構、現場性能和產品品質。

Next, BorgWarner has secured three high-voltage coolant heater business wins in Asia, expanding our technological reach in the Asian electric vehicle markets. In China, our high-voltage coolant heater will be used in a leading domestic OEM's fully electric SUV, with production expected to start in the second quarter of 2025. This partnership marks a significant step forward in our continued expansion in China's rapidly growing electric vehicle industry.

接下來，博格華納在亞洲贏得了三項高壓冷卻液加熱器業務，擴大了我們在亞洲電動車市場的技術影響力。在中國，我們的高壓冷卻液加熱器將用於國內領先整車廠的全電動SUV，預計於2025年第二季開始生產。此次合作標誌著我們在中國快速發展的電動車產業的持續擴張中向前邁出了重要一步。

In Korea, the product will be used in an electric pickup vehicle, with production estimated to begin in March 2025. The heater will be critical in managing cabin temperatures, improving energy efficiency, and enhancing the driving experience.

在韓國，該產品將用於電動皮卡，預計將於 2025 年 3 月開始生產。此加熱器對於管理駕駛室溫度、提高能源效率和增強駕駛體驗至關重要。

In Japan, our high-voltage coolant heater has been chosen by a Japanese OEM for its small-battery electric vehicle. With production expected to start in 2028, this marks the company's first heater program in the country.

在日本，一家日本整車廠為其小型電池電動車選擇了我們的高壓冷卻液加熱器。預計將於 2028 年開始生產，這標誌著該公司在該國的第一個加熱器項目。

The compact heater design offers a perfect fit for smaller vehicle platforms, delivering superior performance and efficiency. These three important business wins demonstrate the strength of BorgWarner in this growing field and further solidify our presence in the Asia-Pacific region.

緊湊型加熱器設計非常適合小型車輛平台，提供卓越的性能和效率。這三項重要的業務勝利展示了博格華納在這個不斷發展的領域的實力，並進一步鞏固了我們在亞太地區的地位。

And lastly, BorgWarner will deliver its turbochargers for use on GM's Corvette ZR1 sports car platform, marking the largest passenger car twin turbochargers to be released and produced to date. We're proud to secure this contract and support General Motors in making the most powerful Corvette ever built.

最後，博格華納將交付用於通用汽車 Corvette ZR1 跑車平台的渦輪增壓器，這標誌著迄今為止發布和生產的最大的乘用車雙渦輪增壓器。我們很自豪能夠獲得這份合約並支持通用汽車製造有史以來最強大的克爾維特。

This technology has been in the works for some time now, and to see it come to fruition is both exciting and fulfilling for our passionate teams. BorgWarner and General Motors have a long history of producing market-leading application across a wide range of segments. And we look forward to continuing to develop new technologies with them and push industry boundaries.

這項技術已經投入使用一段時間了，看到它取得成果對於我們充滿熱情的團隊來說既令人興奮又充滿成就感。博格華納和通用汽車在各個領域生產市場領先的應用產品方面有著悠久的歷史。我們期待繼續與他們一起開發新技術並突破行業界限。

Now let's turn to slide 7, where I would like to share our net sales breakdown following our business unit realignment that was effective July 1. Our business units are now aligned with our externally reported segments.

現在讓我們轉向投影片 7，我想在其中分享 7 月 1 日生效的業務部門重組後的淨銷售額明細。我們的業務部門現在與外部報告的部門保持一致。

On the left side of the slide, you see that our turbos and thermal technologies, and drivetrain and more systems segments, each represent approximately 40% of our net sales. These segments generate most of their net sales from our foundational products.

在幻燈片左側，您可以看到我們的渦輪機和熱力技術、動力傳動系統和更多系統細分市場，分別約占我們淨銷售額的 40%。這些細分市場的大部分淨銷售額來自我們的基礎產品。

They both enjoy a number one or number two positions in the different product market segments they serve. These are mature businesses with strong margin and cash flow profiles that we expect will continue to strive as the world looks for more efficient combustion and hybrid powertrains.

他們在所服務的不同產品細分市場中都享有第一或第二的位置。這些都是成熟的業務，具有強勁的利潤率和現金流狀況，隨著世界尋求更有效率的燃燒和混合動力系統，我們預計這些業務將繼續努力。

The remaining 20% of our net sales is comprised of our PowerDrive systems business unit, which was previously reported as ePropulsion; and our battery and charging systems business unit. Except for engine control products, all of these sales generated from these two segments, are eProducts for hybrid and battery electric vehicles.

我們淨銷售額的其餘 20% 由我們的 PowerDrive 系統業務部門組成，該部門之前被稱為 ePropulsion；以及我們的電池和充電系統業務部門。除引擎控制產品外，這兩個細分市場產生的所有銷售額都是混合動力和純電動車的電子產品。

These segments are expected to be significant drivers of our future growth. As these businesses continue to scale, we expect to capitalize on their growth by converting at mid-teens, which is what we are seeing this year.

這些細分市場預計將成為我們未來成長的重要推動力。隨著這些業務不斷擴大規模，我們預計將透過在十幾歲左右進行轉換來利用它們的成長，這正是我們今年所看到的。

I also want to highlight our regional and customer diversity shown on the right side of the slide. Regionally, Americas, Europe, and Asia, rest of the world, each represent approximately a third of BorgWarner's net sales. We are also strongly positioned in terms of exposure to various customer groups.

我還想強調幻燈片右側顯示的我們的區域和客戶多樣性。從地區來看，美洲、歐洲和亞洲以及世界其他地區均約佔博格華納淨銷售額的三分之一。我們在接觸各種客戶群方面也處於強勢地位。

For example, our sales to the Chinese local OEMs represents roughly 15% of our overall net sales so far this year. This is comparable to our net sales to the German OEMs in Europe and our North American sales to the Detroit 3. I think this chart clearly shows BorgWarner's sales resiliency and highlights the benefits of strong diversification across products, customers, and regions.

例如，今年迄今為止，我們對中國本土 OEM 廠商的銷售額約占我們整體淨銷售額的 15%。這與我們在歐洲對德國原始設備製造商的淨銷售額以及我們在北美對底特律 3 的銷售額相當。我認為這張圖表清楚地顯示了博格華納的銷售彈性，並強調了跨產品、客戶和地區的強大多元化的好處。

To summarize, the takeaways from today are: BorgWarner's third-quarter results were strong; sales performance was slightly better than market production; our adjusted operating margin was over 10%; and our cash generation was very strong.

總而言之，今天的要點是：博格華納第三季業績強勁；銷售業績略優於市場產量；我們調整後的營業利益率超過 10%；我們的現金生成能力非常強勁。

This allowed us to accelerate our second-half $300 million share repurchase plan, taking our full-year repurchases to $400 million. We secured new foundational and eProduct business awards in the quarter, which we believe, once again, demonstrate our product leadership on both sides of our portfolio, further supporting our focus on profitable growth over market production.

這使我們能夠加快下半年 3 億美元的股票回購計劃，使全年回購金額達到 4 億美元。我們在本季度獲得了新的基礎和電子產品業務獎項，我們相信這再次證明了我們在產品組合雙方的產品領先地位，進一步支持我們對市場生產的利潤增長的關注。

As we look forward, our formula for success is unchanged. We expect to continue to secure business opportunities that will allow us to continue to grow faster than market production. As I mentioned before, BorgWarner's DNA is to focus on propulsion efficiency, which includes both combustion fuel efficiency and electrons efficiency for hybrids or BEVs.

展望未來，我們的成功秘訣不會改變。我們期望繼續獲得商機，使我們能夠繼續以快於市場產量的速度成長。正如我之前提到的，博格華納的 DNA 是專注於推進效率，其中包括混合動力或純電動車的燃燒燃料效率和電子效率。

I expect efficiency to remain an industry trend for years to come and a strong driver of BorgWarner's growth regardless of propulsion architecture. We continue to seek to appropriately manage our cost structure as industry volumes and propulsion mix outlooks change, while continuing to preserve our long-term profitable growth and product leadership edge.

我預計，無論推進架構如何，效率在未來幾年仍將是行業趨勢，並成為博格華納成長的強大推動力。隨著行業數量和推進組合前景的變化，我們將繼續尋求適當管理我們的成本結構，同時繼續保持我們的長期獲利成長和產品領先優勢。

We believe this focus will allow BorgWarner to continue to deliver sales performance through organic growth above market, convert that growth into higher earnings, and create long-term value for our shareholders.

我們相信，這一重點將使博格華納能夠透過高於市場的有機成長繼續提供銷售業績，將這種成長轉化為更高的收益，並為我們的股東創造長期價值。

With that, let me turn the call over to Craig.

接下來，讓我把電話轉給克雷格。

Thank you, Fred, and good morning, everyone. Before I dive into the financials, I'd like to provide a quick overview of our third-quarter results.

謝謝你，弗雷德，大家早安。在深入了解財務數據之前，我想快速概述我們第三季的業績。

First, we reported just over $3.4 billion in sales, which was down approximately 5% versus prior year, excluding FX and M&A. This was slightly above market production in the quarter, which was down approximately 6%. So we saw modest sales outgrowth in the quarter of approximately 50 basis points, which was primarily driven by European battery growth.

首先，我們報告的銷售額略高於 34 億美元，較上年下降約 5%（不包括外匯和併購）。這略高於本季的市場產量，市場產量下降了約 6%。因此，我們看到本季銷售成長約 50 個基點，這主要是由歐洲電池成長所推動的。

Second, we had strong margin performance in the quarter at 10.1%. This was driven by solid operational performance, the continued benefit of restructuring actions we announced in July, our continued focus on cost controls across the business, and customer recoveries.

其次，本季我們的利潤率表現強勁，達到 10.1%。這是由穩健的營運績效、我們 7 月宣布的重組行動的持續效益、我們持續專注於整個業務的成本控制以及客戶回收所推動的。

Third, we had strong free cash flow in the quarter of $201 million, which allowed us to accelerate our second-half $300 million share repurchase plan. Importantly, we delivered this result while also continuing to organically invest in our business to support our focus on long-term profitable growth.

第三，我們在本季擁有 2.01 億美元的強勁自由現金流，這使我們能夠加快下半年 3 億美元的股票回購計畫。重要的是，我們在取得這項成果的同時，也繼續對我們的業務進行有機投資，以支持我們對長期獲利成長的關注。

Now let's turn to slide 8 for a look at our year-over-year sales walk for Q3. Last year's Q3 sales from continuing operations were just over $3.6 billion. You can see that the weakening US dollar drove a year-over-year increase in sales of $4 million.

現在讓我們轉向投影片 8，了解第三季的年比銷售情況。去年第三季持續經營業務的銷售額略高於 36 億美元。您可以看到，美元疲軟推動銷售額年增 400 萬美元。

Then you can see a decrease in organic sales of approximately 5%, which was 50 basis points above market production, primarily due to strong European battery growth. And finally, the acquisition of Eldor added $9 million of sales year over year. The sum of all this was just over $3.4 billion of sales in Q3.

然後您可以看到有機銷售額下降了約 5%，比市場產量高出 50 個基點，這主要是由於歐洲電池的強勁增長。最後，收購艾爾多使銷售額比去年同期增加了 900 萬美元。第三季所有這些銷售額的總和剛剛超過 34 億美元。

Turning to slide 9, you can see our earnings and cash flow performance for the quarter. Our third-quarter adjusted operating income was $350 million, equating to a strong 10.1% margin. That compares to adjusted operating income from continuing operations of $349 million or a 9.6% margin from a year ago.

翻到投影片 9，您可以看到我們本季的收益和現金流表現。我們第三季調整後營業收入為 3.5 億美元，相當於 10.1% 的強勁利潤率。相較之下，持續經營業務調整後的營業收入為 3.49 億美元，比一年前的利潤率為 9.6%。

On a comparable basis, adjusted operating income increased $15 million on $186 million of lowered sales. This is a great result and reflects our ability to deliver profitability despite a declining production environment.

在可比較基礎上，調整後的營業收入增加了 1,500 萬美元，銷售額減少了 1.86 億美元。這是一個很好的結果，反映了我們在生產環境下降的情況下實現盈利的能力。

This performance was partially helped by $24 million of favorable items related to customer recoveries for eProduct program volume shortfalls and the benefit of our PowerDrive systems restructuring that we announced in July. The net impact of Eldor was a $14 million drag on operating income year over year.

這一業績在一定程度上得益於 2,400 萬美元的有利項目，這些項目與 eProduct 計劃數量不足的客戶恢復相關，以及我們 7 月份宣布的 PowerDrive 系統重組的好處。艾爾多的淨影響是營業收入比去年同期下降了 1,400 萬美元。

Our adjusted EPS from continuing operations was up $0.11 compared to a year ago as a result of strong adjusted operating income, a decline in our effective tax rate, and the impact of $300 million in share repurchases during the quarter.

由於調整後營業收入強勁、有效稅率下降以及本季 3 億美元股票回購的影響，我們來自持續經營業務的調整後每股收益比去年同期增長了 0.11 美元。

And finally, free cash flow from continuing operations was $201 million during the third quarter, which was up $165 million from a year ago, as a result of strong working capital and capital expenditure performance. Now let's take a look at our full-year outlook on slide 10.

最後，由於強勁的營運資本和資本支出表現，第三季持續營運產生的自由現金流為 2.01 億美元，比去年同期增加 1.65 億美元。現在讓我們來看看幻燈片 10 上的全年展望。

We are projecting total 2024 sales in the range of $14.0 billion to $14.2 billion, which is a reduction from our prior guidance of $14.1 million to $14.4 billion. This reduction is due to a lower market production outlook and modestly lower eProduct sales.

我們預計 2024 年總銷售額將在 140 億美元至 142 億美元之間，比我們先前指導的 1,410 萬美元至 144 億美元有所減少。這一減少是由於市場產量前景較低和電子產品銷售量小幅下降所致。

Despite the sales reduction, we expect the company to outgrow market production by 200 to 300 basis points, which, once again, demonstrates the resiliency of our technology-focused portfolio that we believe is positioned to outgrow market production.

儘管銷量下降，但我們預計該公司的產量增長將超過市場產量 200 至 300 個基點，這再次證明了我們以技術為中心的產品組合的彈性，我們相信該產品組合將超過市場產量的增長。

Starting with foreign currencies, our guidance now assumes an expected full-year sales headwind from weaker foreign currencies of $20 million compared to 2023. Within this guidance, our full-year end market assumption has been reduced to down 3% to 3.5% versus down 2% to 3% previously.

從外幣開始，我們的指導現在假設與 2023 年相比，外幣貶值預計全年銷售阻力將達到 2000 萬美元。在此指引下，我們的全年末市場假設已降至下降 3% 至 3.5%，而先前為下降 2% 至 3%。

Finally, the Eldor and SSE acquisitions are expected to add approximately $30 million to 2024 sales. Based on our updated outlook, we expect our organic sales change to be flat to down 1.5% year over year or outgrowth above industry production of 200 to 300 basis points.

最後，艾爾多和 SSE 的收購預計將為 2024 年銷售額增加約 3,000 萬美元。根據我們最新的展望，我們預期有機銷售額變化將持平，年減 1.5%，或成長高於產業產量 200 至 300 個基點。

Now let's switch to margin. We are increasing our full-year margin outlook to 9.8% to 10.0% from our prior guidance of 9.6% to 9.8%. This is based on our year-to-date performance and continued benefits of our PowerDrive systems restructuring that we announced in July. This expected margin increase demonstrates the resiliency of our technology-focused portfolio and our ability to drive profitability in very challenging end markets.

現在讓我們切換到保證金。我們將全年利潤率預期從先前的 9.6% 至 9.8% 上調至 9.8% 至 10.0%。這是基於我們今年迄今的業績以及我們 7 月宣布的 PowerDrive 系統重組的持續優勢。這一預期的利潤率增長表明了我們以技術為中心的產品組合的彈性以及我們在極具挑戰性的終端市場中提高盈利能力的能力。

Our implied fourth-quarter outlook assumes that our [booked] business delivers a mid-teens decremental conversion compared to our average year-to-date results, excluding the benefits of third-quarter volume-related eProduct customer recoveries and second-quarter stock forfeitures related to a senior executive retirement. We view this mid-teens decremental conversion as strong underlying performance, given the anticipated 5% to 7% year-over-year decline in market production during the fourth quarter of 2024.

我們隱含的第四季度前景假設，與我們今年迄今的平均業績相比，我們的[預訂]業務實現了十幾歲左右的遞減轉換，不包括第三季度與銷量相關的電子產品客戶恢復和第二季庫存沒收的好處與高階主管退休有關。鑑於 2024 年第四季市場產量預計將年減 5% 至 7%，我們認為這種十幾歲左右的遞減轉換是強勁的基本表現。

Based on the sales and margin outlook, we're expecting full-year adjusted EPS in the range of $4.15 to $4.30 per diluted share. This 4% EPS increase compared to our prior outlook is being driven by the impact of our strong third-quarter results, a lower share count due to the third-quarter execution of our share repurchase plan, and a reduction in our full-year effective tax rate.

根據銷售額和利潤率前景，我們預計全年調整後每股攤薄每股收益在 4.15 美元至 4.30 美元之間。與我們先前的預期相比，每股盈餘成長了4%，這是由於我們強勁的第三季業績、第三季執行股票回購計畫導致的股票數量減少以及我們全年有效股本的減少所推動的。

We continue to expect full-year free cash flow to be in a range of $475 million to $575 million. Our ability to increase our margin and EPS guidance during a challenging production environment demonstrates our focus on managing costs in order to hold our prior guidance absolute income dollars. And we're doing this despite a significant reduction in global industry volumes.

我們仍然預計全年自由現金流將在 4.75 億美元至 5.75 億美元之間。我們在充滿挑戰的生產環境中提高利潤率和每股收益指引的能力表明我們注重管理成本，以保持我們先前指導的絕對收入美元。儘管全球產業產量大幅減少，但我們仍在這樣做。

Now let's turn to slide 11 and take a look at how we will deploy our expected $475 million to $575 million in 2024 free cash flow. As I just highlighted, we expect another strong year of free cash flow generation. At the midpoint of our guidance, we expect to generate $525 million in free cash flow.

現在讓我們轉向投影片 11，看看我們將如何部署 2024 年預期的 4.75 億至 5.75 億美元自由現金流。正如我剛才強調的，我們預期自由現金流將迎來強勁成長。在我們指導的中期，我們預計將產生 5.25 億美元的自由現金流。

It is important to note that $475 million of this cash flow has already been deployed to shareholders, with $400 million of shares repurchased and $75 million of dividends already paid through the end of the third quarter. If we assume that we will declare and pay our consistent quarterly dividend in the fourth quarter, almost all of our expected free cash flow will be deployed to shareholders in 2024.

值得注意的是，截至第三季末，其中 4.75 億美元的現金流已分配給股東，回購了 4 億美元的股票，並支付了 7,500 萬美元的股息。如果我們假設我們將在第四季度宣布並支付一致的季度股息，那麼幾乎所有預期的自由現金流都將在 2024 年分配給股東。

We believe our ability to return capital to shareholders while also investing in the business demonstrates the underlying strength of the company and the importance of maintaining a strong balance sheet that allows us to invest in our long-term profitable growth and follow a balanced capital allocation approach that reward shareholders.

我們相信，我們在投資業務的同時向股東返還資本的能力證明了公司的潛在實力以及維持強勁資產負債表的重要性，這使我們能夠投資於長期盈利增長並遵循平衡的資本配置方法回報股東。

So let me summarize my financial remarks. Overall, we delivered a strong third quarter with sales outperformance compared to industry production. We delivered a very strong 10.1% margin, which was 50 basis points higher than 2023 and the second quarter in a row with a margin above 10%.

讓我總結一下我的財務評論。整體而言，我們第三季的業績表現強勁，銷售業績優於產業產量。我們實現了 10.1% 的強勁利潤率，比 2023 年高出 50 個基點，並且連續第二個季度利潤率高於 10%。

Additionally, we generated $201 million in free cash flow, which allowed us to accelerate our second-half $300 million share repurchase plan. And we did this despite challenging market production in the quarter. This, once again, shows the resiliency of our technology-focused portfolio that we believe is positioned to outgrow industry production and deliver strong profitability and free cash flow.

此外，我們還產生了 2.01 億美元的自由現金流，這使我們能夠加快下半年 3 億美元的股票回購計畫。儘管本季的市場生產面臨挑戰，但我們還是做到了這一點。這再次顯示了我們以技術為中心的投資組合的彈性，我們相信這些投資組合能夠超越行業生產的成長，並提供強勁的獲利能力和自由現金流。

We are proud to be increasing our margin and EPS outlook for the second time this year despite a declining industry volume (technical difficulty)

儘管行業銷量下降，但我們今年第二次提高了利潤率和每股收益前景，我們對此感到自豪（技術難度）

Connie, can you hear us? I apologize for the audio interruption. Connie, if you can hear us, we can open up the call for questions.

康妮，妳聽得到我們說話嗎？對於音訊中斷，我深表歉意。康妮，如果您能聽到我們的聲音，我們可以開始提問。

Thank you for standing by.

謝謝你的支持。

Connie, can you quickly open the call for questions?

康妮，你能快速打開提問電話嗎？

(Operator Instructions) Colin Langan, Wells Fargo.

（操作員說明）Colin Langan，富國銀行。

Great. Thanks for taking my questions, and congrats on a good quarter in a pretty tough market. I wanted to ask, if we go back to the Investor Day in June of last year, you actually talked about a 10% margin in 2027. Now I think at the high end of your guidance, you could be there this year, which is pretty impressive since the world has actually been a bit worse over the last 1.5 years.

偉大的。感謝您回答我的問題，並祝賀在相當艱難的市場中取得了良好的季度業績。我想問一下，如果我們回到去年6月的投資者日，您實際上談到了2027年的利潤率為10%。現在，我認為按照您指導的上限，您今年可能會達到這個水平，這令人印象深刻，因為過去 1.5 年世界實際上變得更糟了。

How should we think about margins from here? Is there anything kind of that might prevent you from getting above that 10%? It sounds like you expect to convert EV or ICE at the same contribution, so that would imply if we have growth, if we could kind of beat that '27 target already?

從這裡我們該如何考慮利潤？有什麼因素可能會阻止您達到 10% 以上嗎？聽起來您希望以相同的貢獻轉換電動車或內燃機汽車，因此這意味著如果我們有成長，我們是否可以超過 27 年的目標？

Yeah, thanks, Colin, for the question. Can you hear me okay?

是的，謝謝科林提出的問題。你聽得到我說話嗎？

Yup.

是的。

Okay, great. Let's start with the quarter. Overall, the quarter, really strong operational performance. As I mentioned in my script, we benefited from restructuring actions, a real focus on cost controls across the business. And I mentioned that we also had a bit of a tailwind from PDS volume-related customer recovery. So really pleased with our performance in the quarter.

好的，太好了。讓我們從季度開始。整體而言，本季的營運業績確實強勁。正如我在劇本中提到的，我們受益於重組行動，並真正關注整個企業的成本控制。我提到，我們也從 PDS 數量相關的客戶恢復中獲得了一些推動力。對我們本季的表現非常滿意。

As you look to the fourth quarter, I think how you should look at our performance, really two ways to look at it. First, against our average performance for the full year. If you look at that at the midpoint of our guide, we're expecting revenue to be down, let's just call it, roughly 3%.

當你展望第四季時，我認為你應該如何看待我們的表現，實際上有兩種看待它的方式。首先，對照我們全年的平均表現。如果你看看我們指南的中點，我們預期收入會下降，我們就這麼稱呼吧，大約下降 3%。

And when you remove the one-time items in the second quarter and the third quarter that I mentioned in my script, we're decrementing in the mid-teens, which is what you would expect. That's one way to look at our fourth-quarter performance. That gets us to 9.6% for the guidance.

當你刪除我在腳本中提到的第二季和第三季的一次性項目時，我們的數量會減少到十幾歲左右，這正是你所期望的。這是看待我們第四季業績的一種方式。這使得我們的指導值為 9.6%。

If you look at our year-over-year performance for the fourth quarter, again, revenue down about 2% year over year, and we're actually holding [incomes]. Again, that gets us to 9.6% at the midpoint. So either way you look at it from our perspective, good operational performance in the fourth quarter. And I think we're focused on delivering that guidance at the midpoint, again, right around 9.6%.

如果你再看看我們第四季的年比業績，你會發現營收年減了約 2%，而我們實際上保持了[收入]。同樣，這使我們的中位數達到 9.6%。因此，無論從我們的角度來看，第四季的營運表現都很好。我認為我們的重點是在中點提供該指導，即 9.6% 左右。

I guess, just to follow-up on the long-term 10% target -- you're pretty close there. Anything that we should be thinking about as we think about '25, '26 that would sort of prevent getting above that target? Because it seems like you're pretty awful close.

我想，只是為了跟進 10% 的長期目標——你已經非常接近了。當我們考慮「25」、「26」時，我們應該考慮哪些因素會阻止我們超越該目標？因為看起來你們的關係非常接近。

It's not the time to talk about longer term. We're focusing on '24. We're focusing on controlling our incremental or decremental for that matter. And I think you can see it in our guide, and we've talked about '25 in the Q4 call.

現在不是談論長期的時候。我們的重點是'24。我們專注於控制我們的增量或減量。我想你可以在我們的指南中看到它，我們在第四季度的電話會議中討論了「25」。

Got it. All right. Thanks for taking my questions.

知道了。好的。感謝您回答我的問題。

Thank you, Colin.

謝謝你，科林。

Thanks, Colin.

謝謝，科林。

Dan Levy, Barclays.

丹·利維，巴克萊銀行。

Hi. Good morning. Thank you. I wanted to just double-click on the margin in 3Q. Based on the revenue decline at a 20% decremental, that would've been, call it, a $37 million EBIT hit. But instead, you were plus 15% on the year over year. So that's a $50 million plus swing. It's even more if you're adjusting for Eldor.

你好。早安.謝謝。我想雙擊第三季的利潤。根據收入下降 20% 計算，息稅前利潤將減少 3,700 萬美元。但相反，您比去年同期成長了 15%。所以這相當於 5000 萬美元以上的資金投入。如果你針對艾爾多進行調整，那就更是如此了。

So maybe you can just decompose that. I know you mentioned there was the $24 million benefit for ePropulsion, but there's still another gap. And then maybe on the $24 million, how much of that is sort of recurring -- sort of the ongoing restructuring benefit versus maybe a one-time benefit?

所以也許你可以分解它。我知道您提到 ePropulsion 可以獲得 2400 萬美元的收益，但還有另一個差距。然後，也許在 2400 萬美元中，其中有多少是經常性的——是持續的重組收益還是一次性收益？

Yeah. Overall, when you look at the quarter, like you said, it was just really strong operational performance. We're benefiting from the PDS restructuring that we announced in July. We're benefiting from our focus on cost controls productivity, restructuring, savings, et cetera.

是的。總的來說，當你看這個季度時，正如你所說，它的營運表現非常強勁。我們從 7 月宣布的 PDS 重組中受益。我們受惠於我們對成本控制、生產力、重組、節約等的關注。

To answer your question, the $24 million of volume-related PDS customer recoveries, that's a one-time item in the quarter. You should not expect that to repeat quarter after quarter.

回答你的問題，與數量相關的 PDS 客戶回收金額為 2400 萬美元，這是本季的一次性項目。你不應該期望這種情況會一個季度又一個季度地重複。

And what's the ongoing restructuring benefit?

正在進行的重組有什麼好處？

The PDS restructuring [you said] $20 million to $30 million for the full year.

PDS 重組（你說）全年費用為 2000 萬至 3000 萬美元。

Okay, got it. Thank you. Second, I appreciate with the new segment structure, we can now better see the battery business. If you could maybe just double click on the growth there. How much of that is just strong demand versus getting new supply online? I think a lot of it is new supply. What type of growth profile we can expect for this business?

好的，明白了。謝謝。其次，我很欣賞新的細分結構，我們現在可以更好地看到電池業務。如果可以的話，也許只需雙擊那裡的生長即可。其中有多少只是強勁的需求與線上新供應的關係？我認為很多都是新供應的。我們可以預期該業務的成長狀況如何？

And then interesting to see that it's near breakeven. Should we just assume that this is going to increment that your mid- to high teens, and you're working your way up as you continue to grow? Just a way to think about sort of the margin profile of that business over time.

然後有趣的是看到它接近收支平衡。我們是否應該假設這會增加您的青少年年齡，並且隨著您的不斷成長，您正在努力向上？只是一種思考該業務隨時間推移的利潤狀況的方法。

Dan, I'll start. Yeah, on the battery and charging for the quarter, it was a good incremental of about 36%, strong sales, especially in Europe. And I think for -- when you look at the segments, too, on the other segment, there was a very, very efficient decremental on the way there, right?

丹，我要開始了。是的，本季的電池和充電方面，成長了約 36%，銷售強勁，尤其是在歐洲。我認為，當您也查看這些細分市場時，在其他細分市場上，那裡有一個非常非常有效的遞減，對吧？

So we're really focused on controlling what we can control, adjusting to the volatility of the market, and driving margin performance. And I think you can see that in the guide. I don't see a reason why this business should not carry on incrementing at the [meeting].

因此，我們真正專注於控制我們能控制的事情，適應市場的波動性，並提高利潤率。我想你可以在指南中看到這一點。我不認為這項業務不應該繼續增加[會議]。

And the supply versus demand dynamics, how much of this is just sort of new supply heading?

供應與需求的動態變化，其中有多少只是新的供應方向？

I would say the supply versus demand dynamic is not a dynamic where we are, let's say, short of supply. We now have aligned capacity to demand in both regions, North America and Europe. So this is behind us.

我想說的是，供給與需求的動態並不是我們供應短缺的動態。我們現在已經在北美和歐洲這兩個地區實現了滿足需求的產能。所以這已經在我們身後了。

Okay, thank you.

好的，謝謝。

Joe Spak, UBS.

喬·斯帕克，瑞銀集團。

Thank you. I guess, maybe just to sort of follow on Dan's question there with some of the new segmentation. Like, we have seen pretty steady improvement in the margins in battery and charging.

謝謝。我想，也許只是為了跟進丹的問題並進行一些新的細分。例如，我們看到電池和充電的利潤率穩定提高。

And I know -- I think your capacity is sort of fully built out by the end of this year, and you're going to sort of fill that up. So is getting to positive margins just sort of the remaining -- filling up that sort of remaining capacity, or are there other actions in that segment?

我知道——我認為到今年年底，你們的能力已經完全建立起來，你們將把它填滿。那麼，獲得正利潤只是剩餘的一種方式嗎——填補這種剩餘產能，還是在該領域還有其他行動？

Yeah, it's really at scale. We got to continue to scale the business. So you saw revenue in the quarter coming in right around $200 million. As we continue to scale that business and increment in the mid-teens, then we'll get to breakeven and above. And that's what we're focused on doing.

是的，規模確實很大。我們必須繼續擴大業務。因此，您看到該季度的收入約為 2 億美元。隨著我們繼續擴大業務規模並在十幾歲左右增加，我們將達到收支平衡及以上。這就是我們專注於做的事情。

And the build-out is effectively done this quarter?

擴建工作在本季有效完成了嗎？

It's complete.

完成了。

Right. And then just -- Craig, you sort of stressed, I think, a couple of times, right, all the cash generation was redeployed to shareholders this year between the buyback and the dividend. I appreciate we're sort of not talking about '25 yet. But I mean, is that a sort of similar paradigm that we should expect going forward here over the coming years?

正確的。然後，克雷格，我想，你有幾次強調，今年在回購和股息之間產生的所有現金都重新分配給了股東。我很高興我們還沒有談論「25」。但我的意思是，我們應該期待在未來幾年出現類似的範例嗎？

Yeah. We'll comment on '25 when we get to '25. Really happy with the way that we've deployed cash this year. Again, as you mentioned, we have line of sight to $525 million at the midpoint of our guide.

是的。當我們到達“25”時，我們將評論“25”。我們對今年部署現金的方式非常滿意。正如您所提到的，我們的目標是在指南的中點達到 5.25 億美元。

We'll effectively apply all of that to shareholders. I'm really pleased with the way that we've allocated capital this year. Again, we'll give you insight into '25 as we get into February.

我們將有效地將所有這些應用於股東。我對今年我們分配資本的方式感到非常滿意。進入 2 月份，我們將再次向您介紹 '25。

All right. Thank you.

好的。謝謝。

Adam Jonas, Morgan Stanley.

亞當‧喬納斯，摩根士丹利。

Thanks, everybody. Joe just asked my question on the free cash flow paradigm and how much of that's returned. So just one left for me.

謝謝大家。喬剛剛問了我關於自由現金流範式以及其中有多少回報的問題。所以只剩下一張給我了。

I know you're saying the $24 million of recoveries is one-time, won't be repeated. But it does seem like the narrative from your customers is pushed out, written off, canceled, at the margin, EV programs. And some of them are quite sizable, including from the likes of Ford and some others. We suspect that will continue. So I didn't know if that was -- again, not calling out in a specific quarter or the occurrence of one-time items.

我知道您是說 2400 萬美元的追償是一次性的，不會重複。但看起來你的客戶的敘述確實被推遲、註銷、取消，在邊緣，電動車專案。其中一些規模相當大，包括福特和其他一些公司。我們懷疑這種情況將會持續下去。所以我不知道這是否是 - 再次，沒有在特定季度或一次性項目的發生中呼籲。

But am I right that if I'm looking ahead 12 months, there is a possibility for more recoveries from OEMs, given what has been announced and what you're seeing in your discussion so far of cancellations of eProduct and EV-related products that you spent money on and may not be made at anywhere near the volumes which you expected or at all? Thanks.

但如果我展望未來12 個月，考慮到已宣布的內容以及您在討論中迄今為止所看到的取消電子產品和電動汽車相關產品的情況，原始設備製造商(OEM) 有可能獲得更多的復甦，這一點對嗎？謝謝。

Thanks, Adam. Yeah, each case is specific. I would say that this case is a little exceptional. What we're focusing on at BorgWarner is also bringing flexibility from a modular design standpoint, flexibility from a production standpoint, reusing the four walls, and transforming our plants from combustion into electrification in a measured way.

謝謝，亞當。是的，每個案例都是具體的。我想說，這個案例有點特別。博格華納的重點還包括從模組化設計的角度帶來靈活性，從生產的角度帶來靈活性，重複利用四面牆，並以謹慎的方式將我們的工廠從燃燒轉變為電氣化。

So we are with our customers for the long run. And I would say that each case is very specific, and we're going to manage the business going forward depending on what's happening.

因此，我們與客戶長期合作。我想說，每個案例都是非常具體的，我們將根據正在發生的情況來管理未來的業務。

Thanks, Fred.

謝謝，弗雷德。

John Murphy, Bank of America.

約翰‧墨菲，美國銀行。

Good morning, guys. Fred, I just wanted to ask, on slide 6, when you look at something like the transfer case extension, how much new capital needs to go into investing in sort of that next-gen product? Is it minimal? And as we see these extensions on the ICE side, could the profits and returns be significantly -- or margins and returns could be significantly better than they have been historically or even just a bit better?

早安，夥計們。Fred，我只是想問，在投影片 6 上，當您看到諸如分動箱擴充功能之類的東西時，需要多少新資本來投資下一代產品？它是最小的嗎？正如我們在 ICE 方面看到的這些擴展，利潤和回報率是否會顯著提高，或者利潤率和回報率是否會比歷史水平顯著提高，甚至只是好一點？

Yeah. I won't comment specifically on this transfer case program. But what we see from a combustion standpoint is, you have three elements happening in the marketplace. First is program extension, like the transfer case, where some capital maybe have to be put in place to cope with the extension and sometimes, less. So that's the first case.

是的。我不會具體評論這個分動箱程序。但從燃燒的角度來看，我們看到市場上正在發生三個因素。首先是程式擴展，例如分動箱，可能需要投入一些資金來應對擴展，有時甚至更少。這是第一種情況。

Second case is program prolongations where the combustion engine is going to be run for longer. And the third case is hybrids carrying over combustion gasoline engines for a hybrid application. And that's what's driving also the outgrowth of the combustion market in that specific case.

第二種情況是程序延長，即內燃機將運轉更長時間。第三種情況是混合動力車將燃燒汽油引擎用於混合動力應用。在這種特定情況下，這也是推動燃燒市場成長的原因。

Okay, that's helpful. And then just a second question. A lot of other suppliers are kind of alluding to the bidding process or the program bidding process being pushed out quite dramatically. But once again, on slide 6, you're showing some pretty good wins.

好的，這很有幫助。然後是第二個問題。許多其他供應商都在暗示招標過程或專案招標過程被大幅推遲。但在幻燈片 6 上，您再次展示了一些相當不錯的勝利。

I just wonder if you could characterize your quoting activity right now and if you think it's very different than history or disrupted by EVs. I mean, what's your current take on that? And is there anything that's really shifted maybe in absolute terms or maybe just timing terms?

我只是想知道您是否可以描述一下您現在的報價活動，以及您是否認為它與歷史有很大不同或受到電動車的干擾。我的意思是，你目前對此有何看法？有沒有什麼東西確實發生了變化，可能是絕對意義上的，也可能只是時間意義上的？

Yeah. John, so what we're seeing is that in the Western world, there is a bit of a slowdown in new quoting activities for electrified powertrains. And I think one of the key reasons is that we're all focused on launching including at BorgWarner.

是的。約翰，我們看到的是，在西方世界，電動動力系統的新報價活動略有放緩。我認為關鍵原因之一是我們都專注於推出產品，包括博格華納。

There are many, many electrified, hybrid, and BEV launches in Europe and North America. And again, that opens other opportunities for us on the combustion with what I alluded to before extensions, that the transfer case prolongations and/or carrying over combustion engines into hybrid powertrains. So that's the dynamic that we see in the marketplace.

歐洲和北美推出了許多電動、混合動力和純電動車。再說一次，這為我們在燃燒方面提供了其他機會，我在擴展之前提到過，即分動箱延長和/或將內燃機轉移到混合動力系統中。這就是我們在市場上看到的動態。

But would it be fair to say that does not have a significant impact on your mid- to long-term growth over market prospects?

但可以公平地說，這不會對你們的中長期成長和市場前景產生重大影響嗎？

We expect to have a portfolio that is resilient on the various propulsion architecture, mix scenario, and regional mix scenario. And we expect to carry on outgrowing our respective markets.

我們期望擁有一個能夠適應各種推進架構、混合場景和區域混合場景的產品組合。我們預計將繼續超越我們各自的市場。

Thank you very much.

非常感謝。

Luke Junk, Baird.

路克垃圾，貝爾德。

Good morning. First question, Fred, just hoping you could, building on the last response there, just comment on your hybrid pipeline, specifically. And we'd just be interested if you're seeing any evolution more on a bigger picture standpoint, I guess, relative to the regulatory backdrop and how you solve for that, both in Europe and US from a powertrain standpoint, and the role hybrids is going to play in that. Thank you.

早安.第一個問題，Fred，只是希望你能在最後一個回應的基礎上，具體評論一下你的混合管道。我想，如果您從更大的角度看到任何演變，相對於監管背景以及您如何解決這個問題，無論是在歐洲還是美國，從動力總成的角度來看，以及混合動力的角色，我們都會有興趣。謝謝。

For us, it's fairly simple. Our combustion portfolio is fully fungible into hybrid powertrains. The most advanced and modern hybrid powertrains carry most of our combustion products. And on an eProduct standpoint, as we mentioned in the past, an inverter for BEV is the same as an inverter for hybrid.

對我們來說，這相當簡單。我們的燃燒產品組合可完全取代混合動力系統。最先進、最現代的混合動力系統承載著我們大部分的燃燒產物。從電子產品的角度來看，正如我們過去提到的，純電動車的逆變器與混合動力汽車的逆變器相同。

So I'm oversimplifying, but the gas are the same. The motor is actually pretty much the same, and a P4 for hybrid can be an iDM for BEV. It's the same types of products. So we are in a position to serve our customers globally into wherever they want to go from a powertrain architecture standpoint going forward.

所以我過於簡化了，但氣體是相同的。馬達實際上幾乎是一樣的，混合動力車的 P4 可以是純電動車的 iDM。都是同類型的產品。因此，從動力總成架構的角度來看，我們能夠為全球客戶提供服務，無論他們想去哪裡。

So for us, I wouldn't say that it doesn't really matter. But this is why we think we can carry on outgrowing the market or the markets, and convert on that outgrowth.

所以對我們來說，我不會說這並不重要。但這就是為什麼我們認為我們可以繼續超越市場的成長，並利用這種成長來進行轉變。

And then for my follow-up, Craig, just wondering if we could get some flavor for incremental cost controls productivity. Just help us understand some of the areas that you're leaning into and what might carry over into 2025 for the back half of this year.

然後，克雷格，我的後續行動，只是想知道我們是否可以對增量成本控制生產力有所了解。請協助我們了解您正在關注的一些領域以及可能會延續到 2025 年下半年的領域。

I think we're leaning into all of those things. We're real focused across the business on cost controls. Luke, the items that you mentioned were -- helped us in the quarter. Whether it's restructuring actions, whether it's continued focus on savings, whether that's supply chain or productivity, we're leaning into all that across the business. And I think you can see that in our segment performance through the first nine months. We'll continue to have that focus, especially as the top line stays very volatile.

我認為我們正在致力於所有這些事情。我們真正專注於整個業務的成本控制。盧克，你提到的項目在本季幫助了我們。無論是重組行動，無論是繼續專注於節約，無論是供應鏈還是生產力，我們都在向整個企業傾斜。我認為您可以從我們前九個月的細分市場表現中看到這一點。我們將繼續關注這一焦點，特別是在營收仍然非常不穩定的情況下。

Understood. Thank you.

明白了。謝謝。

James Picariello, BNP Paribas.

詹姆斯·皮卡里洛，法國巴黎銀行。

Hi, guys. Just on the LVP assumption for this year, you're signaling down 2% to 2.5%. Like there are other suppliers out there that are calling for down 4% now, right, which implies the fourth-quarter precipitous down something close to 10%. Just curious on your thoughts there and the visibility in your own build schedules, in your own customer mix, on that point. Yeah, that's my first question.

嗨，大家好。僅就今年的 LVP 假設而言，您預計將下降 2% 至 2.5%。就像其他供應商現在要求降價 4% 一樣，這意味著第四季的降價幅度接近 10%。只是對您的想法以及您自己的構建計劃、您自己的客戶組合中的可見性感到好奇。是的，這是我的第一個問題。

Hey, James, our view is the market will be down 3% to 3.5% year over year, biggest reductions. North America, Europe are down 5% to 5.5% year over year and with a slight increase in China. That's what we see. And we are going to carry on managing our costs effectively and adjust to potential production environment changes. And I think this is evidenced in our updated guide, too.

嘿，詹姆斯，我們的觀點是市場將年減 3% 到 3.5%，降幅最大。北美、歐洲較去年同期下降5%至5.5%，中國略有成長。這就是我們所看到的。我們將繼續有效地管理成本並適應潛在的生產環境變化。我認為這在我們更新的指南中也得到了證明。

Okay. Yeah, I was referring to just the light vehicle component. But yeah, we're still splitting hairs, I suppose. My follow-up is just, as we think about your foundational product suite and the potential for hybrids to run much stronger in demand.

好的。是的，我指的是輕型車輛零件。但是，是的，我想我們仍然在爭論。我的後續行動只是，當我們考慮您的基礎產品套件以及混合動力車運行需求更強勁的潛力時。

Between your turbos and thermal segment versus the drivetrain and more systems, how do you view hybrid demand between those two segments, again, on the foundational side? Is one positioned than the other if there's some kind of ranking that you could share? Thanks.

在渦輪機和熱力部分與傳動系統和更多系統之間，您如何看待這兩個部分之間的混合需求，同樣，在基礎方面？如果您可以分享某種排名，其中一個的排名是否優於另一個？謝謝。

I don't think we've broken down that potential. I would say that it would touch both segments. The most advanced hybrids carry engine components that we have in motors, in turbos, and other subsystems.

我不認為我們已經破壞了這種潛力。我想說它會觸及這兩個部分。最先進的混合動力汽車配備了我們在馬達、渦輪機和其他子系統中擁有的引擎組件。

It will also carry everything related to shifting mechanism between the eDrive and the combustion driver hybrid. So I would say that advanced hybrid powertrain will draw products from those two essentially foundational segments. Next.

它還將攜帶與 eDrive 和燃燒驅動混合動力之間的換檔機構相關的所有內容。所以我想說，先進的混合動力系統將從這兩個基本的基礎領域汲取產品。下一個。

Mark Delaney, Goldman Sachs.

馬克·德萊尼，高盛。

Yes, good morning. Thanks for taking my questions. First, I believe you are now assuming growth over market of 200 to 300 basis points. And I think it had been 350 to 450, I assume, for 2024 previously. So maybe you can help us better understand what's changing in the growth of our market outlook for this year.

是的，早安。感謝您回答我的問題。首先，我相信您現在假設市場成長 200 到 300 個基點。我認為 2024 年之前的數字是 350 到 450。因此，也許您可以幫助我們更好地了解今年市場前景成長的變化。

So, Mark, our outgrowth has dropped of about $200 million, and half of it is coming from eProduct portfolio. The other half is coming from our foundational business, which is about [$100 million out of $12 billion].

因此，馬克，我們的成長減少了約 2 億美元，其中一半來自電子產品組合。另一半來自我們的基礎業務，大約是[120 億美元中的 1 億美元]。

I would say it is not extremely material so -- and from a quarter-over-quarter outgrowth, I would not really look at it. We are, year to date, at 270 basis points, and I think it's not always smooth quarter to quarter.

我想說這並不是非常重要，所以從季度環比的成長來看，我不會真正關注它。今年迄今為止，我們的利率為 270 個基點，而且我認為季度與季度之間的情況並不總是順利。

Okay, that's helpful. My other question was just following up on John's question around the pace of bookings and understanding the Western OEM bookings activity has slowed.

好的，這很有幫助。我的另一個問題是跟進約翰關於預訂速度的問題，並了解西方 OEM 預訂活動已經放緩。

I'm curious if you think post-US election results, if there's the potential for award activity from Western OEMs to accelerate once they have a better sense on the likely path of CO2 requirements in the coming years. Thanks.

我很好奇您是否認為美國大選後的結果，一旦西方原始設備製造商對未來幾年二氧化碳需求的可能路徑有了更好的認識，他們的獎勵活動是否有可能加速。謝謝。

I am not sure I can comment on this. Let's wait and see. At least, at BorgWarner, we're already wherever the customers want to go.

我不確定我是否可以對此發表評論。讓我們拭目以待。至少，在博格華納，我們已經到達客戶想去的地方。

Understood. Thank you.

明白了。謝謝。

Thank you.

謝謝。

Emmanuel Rosner, Wolfe Research.

伊曼紐爾‧羅斯納，沃爾夫研究中心。

Great. Thank you so much. I was hoping you can help us put a finer point on the cost actions and how to think about them. How should we think about the amount of structural cost reduction that you're taking out this year?

偉大的。太感謝了。我希望您能幫助我們更好地了解成本行動以及如何考慮它們。我們該如何看待你們今年採取的結構性成本削減金額？

How do they annualize -- like, into next year, like, how much of it is left over from more recent actions? And generally speaking, the programs you've announced or you have in place, how much cost is left to take out?

他們如何按年計算──比如，到明年，比如，最近的行動留下了多少？一般來說，您已經宣布或已經實施的計劃，還需要多少成本才能實施？

Yeah, thanks for the question. So I'll point to the PDS restructuring because those are structural changes that we're making. What we indicated this year is 20 million to 30 million. We announced that in July. So if you annualize that 40 million to 60 million next year with a target of 100 million by 2026. Those are structural changes that we're making.

是的，謝謝你的提問。因此，我將指出 PDS 重組，因為這些是我們正在進行的結構性變革。我們今年表示的是2000萬到3000萬。我們在七月宣布了這一點。因此，如果你明年將這一數字推算為 4,000 萬至 6,000 萬，目標是到 2026 年達到 1 億。這些都是我們正在做出的結構性改變。

As you think about our business as we move forward, even with these restructuring actions, what's our goal? Our goals are to grow over the market from a sales perspective, turn that growth into income in the mid-teens, regardless if the growth is on the foundational eProduct side of the portfolio, and to generate cash. So I think, ultimately, how you should think about our growth is incrementing in the mid-teens. That's a great way to model it.

當您考慮我們的業務時，即使採取了這些重組行動，我們的目標是什麼？我們的目標是從銷售的角度在市場上實現成長，將這種成長轉化為十幾歲左右的收入，無論成長是否在投資組合的基礎電子產品方面，並產生現金。所以我認為，最終，你應該如何看待我們的成長在十幾歲左右。這是一個很好的建模方法。

Thank you for the color. And then I was hoping to hone in a little bit more again on the commercial vehicle battery business. Can you maybe talk to us about BorgWarner's competitive advantages in that business and then also the operating leverage on this business, specifically?

謝謝你的顏色。然後我希望在商用車電池業務上再多磨練一點。您能否與我們談談博格華納在該業務中的競爭優勢，以及該業務的具體營運槓桿？

Obviously, very strong incrementals that we just saw. Then I think your earlier comments spoke about no reason why you shouldn't stay in the mid-teens. That's, obviously, quite a big difference between 40% and the mid-teens. So maybe the longer-term question is, okay, what are BorgWarner's competitive advantages? But maybe shorter term is, how do you think about the operating leverage, please?

顯然，我們剛剛看到了非常強勁的增量。然後我認為你之前的評論沒有說明為什麼你不應該留在十幾歲左右。顯然，40% 的人與十幾歲左右的人之間存在很大差異。因此，也許更長期的問題是，博格華納的競爭優勢是什麼？但也許更短期的是，您如何看待營運槓桿？

So from a product perspective, Emmanuel, as you know, we are focused only on commercial vehicle trucks and buses. With this, we are pretty agnostic from a cell form perspective. We're in production within NMC and preparing production with LFP in the light of our association with FinDreams. We have capacity installed in both sides of the pond in the US and in Europe.

因此，從產品角度來看，Emmanuel，如您所知，我們只專注於商用車卡車和巴士。因此，從細胞形態的角度來看，我們是相當不可知的。鑑於我們與 FinDreams 的合作，我們正在 NMC 內部進行製作，並準備與 LFP 一起製作。我們在美國和歐洲的池塘兩側都安裝了產能。

And we are in charge of software, cybersecurity, assembly of the pack, testing of the pack, and everything that goes around the pack, which, I think, is pretty differentiated. And we are one of the only one in the Western world building battery packs for commercial vehicle trucks and buses as an independent supplier.

我們負責軟體、網路安全、包的組裝、包的測試以及包周圍的一切，我認為這是非常不同的。我們是西方世界唯一為商用車卡車和巴士製造電池組的獨立供應商之一。

Yeah. I'll comment on the margin profile. Obviously, really happy with the performance of that business. It grew quite significantly in the quarter, converted at a really high level, like you mentioned, about $0.35 on the dollar.

是的。我將對保證金概況發表評論。顯然，對該業務的表現非常滿意。它在本季度增長相當顯著，轉換水平非常高，正如您所提到的，大約為 0.35 美元。

As we move forward, I wouldn't say one quarter makes a trend. So we're focused on that business, incrementing in the mid-teens like all of our other businesses. That's how we'll measure success for the battery business and the charging business.

隨著我們前進，我不會說四分之一會形成趨勢。因此，我們專注於該業務，像我們所有其他業務一樣，在十幾歲左右開始成長。這就是我們衡量電池業務和充電業務成功的方式。

Thank you.

謝謝。

Thank you.

謝謝。

With that, I'd like to apologize for the audio issues that we had today, and thank you, all, for your great questions. If you have additional follow-ups, feel free to reach out to me or my team.

在此，我想對今天遇到的音訊問題表示歉意，並感謝大家提出的好問題。如果您有其他後續行動，請隨時與我或我的團隊聯繫。

With that, Connie, you can go ahead and conclude today's call.

康妮，您可以繼續結束今天的電話會議了。

This does conclude the BorgWarner 2024 third-quarter results conference call. You may now disconnect.

博格華納 2024 年第三季業績電話會議至此結束。您現在可以斷開連線。