塞拉尼斯 (CE) 2004 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the first-quarter results conference call for Acetex Corporation. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. (Operator Instructions). As a reminder, this conference is being recorded, Wednesday, April 29, 2004. I would now like to turn the conference over to Brooke Wade, Chairman and CEO of Acetex Corporation. Please go ahead, sir.

女士們，先生們，感謝各位的耐心等待。歡迎參加Acetex公司第一季業績電話會議。會議期間，所有與會者將處於「只聽」模式。之後，我們將進行問答環節。 （操作員指示）。小提醒：本次會議將於2004年4月29日（星期三）進行錄音。現在，我將把電話交給Acetex公司董事長兼執行長布魯克·韋德。先生，請開始。

Thank you very much, operator. Good afternoon and, or, good morning and welcome to the Acetex Corporation first-quarter results conference call. Thank you very much for taking the time to dial in.

非常感謝接線生。下午好，早上好，歡迎參加Acetex公司第一季業績電話會議。非常感謝您撥通電話。

As is our usual practice I will review the highlights of the quarter -- not redo the whole press release or cite too many details -- and then move to question-and-answer, which is the primary purpose of this call.

按照我們的慣例，我將回顧本季度的亮點——不會重做整個新聞稿或引用太多細節——然後進入問答環節，這是本次電話會議的主要目的。

With me today on the line -- I am Brooke Wade, Chairman and CEO, as introduced by the operator. With me today on the line are Kenneth Vidalin, President and Chief Operating Officer. He is here with me in London. Gary Connaughty is online from Toronto, and Donald Miller is on the line from Vancouver.

今天和我一起上線的——我是董事長兼執行長布魯克·韋德，接線員介紹道。今天和我一起上線的還有總裁兼營運長肯尼斯‧維達林。他現在在倫敦。加里·康諾蒂在多倫多，唐納德·米勒在溫哥華。

I intend to review two things in this call. First, our operations for the first quarter of the year; and second, to talk briefly about our global expansion project, which was announced a few days ago, or a week ago.

我打算在這次電話會議上回顧兩件事。首先，我們今年第一季的營運情況；其次，簡單談談我們幾天前或一週前宣布的全球擴張計畫。

First, to go to the fact, in terms of operating results -- EBITDA reported for Q1 of 2004 is 13.7 million. That compares to 13.2 million in the prior quarter Q4.

首先，就營運績效而言，2004年第一季的息稅折舊攤銷前利潤（EBITDA）為1,370萬美元，而上一季第四季的息稅折舊攤提前利潤（EBITDA）為1,320萬美元。

Our net incomes in the first three months of this year is a loss of 644,000 -- that compares to 7.8 million of net loss in Q4.

我們今年前三個月的淨收入虧損 644,000 元，而第四季的淨虧損為 780 萬元。

Pro forma EBITDA for comparable period Q1 last year, giving effect to the acquisition of AT Plastics as if it had occurred at the beginning of year -- 18.2 million -- and our actual EBITDA as reported last year under GAAP in absence of AT Plastics was 12.7.

去年第一季可比期間的預測 EBITDA（考慮到對 AT Plastics 的收購，就好像該收購發生在年初一樣）為 1,820 萬美元，而去年根據 GAAP 在沒有 AT Plastics 的情況下報告的實際 EBITDA 為 127,000 美元。

As operations detail go -- in acid pricing Q1 versus Q4 according to the newsletter references that we use as our practice, cite pricing -- acid prices were down 3.3 percent and VAM prices were up almost the same amount, by about 3.5 percent. Both that slight downward pressure in acid and slight upward pressure in VAM partly results of a competitor in Europe who was not running their VAM facility consistently during the quarter, and as a result that resulted in a bit of extra tightness in VAM and a bit of the opposite in acid.

營運細節方面——根據我們慣例使用的新聞稿參考，第一季與第四季的酸價對比——酸價下跌了3.3%，而VAM價格則上漲了幾乎相同的幅度，約為3.5%。酸價略有下跌壓力，VAM價格略有上漲壓力，部分原因是歐洲競爭對手在本季未能持續營運其VAM設施，導致VAM供應略顯緊張，而酸價則略有上漲。

Going forward, our view is that the outlook is good for both of those products -- particularly in VAM.

展望未來，我們認為這兩種產品的前景都很好——尤其是 VAM。

The newsletter outlook for pricing is that there will be an expected price increase of 2.5 percent in both acid and VAM. That reflects really just an assumption of a pass-through (ph) -- a slight increase in methanol prices, which has settled at EUR200 per ton as compared to 190 in Q1. Just to be really clear about the acid price and the VAM price for Q2 are not yet settled (indiscernible) expectation of being up 2.5 percent.

新聞稿中的價格預測是，預計酸和VAM的價格都將上漲2.5%。這其實只是一種傳遞效應的假設——甲醇價格小幅上漲，目前已穩定在每噸200歐元，而第一季為每噸190歐元。需要明確指出的是，第二季酸和VAM的價格尚未確定（音訊不清晰），預計將上漲2.5%。

Turning to our AT Plastics business, revenue is good -- on very good volume production -- higher than last year at the same period. And increase in specialty sales as our target account program continues to work to improve our sales in specialty products.

談到我們的AT塑膠業務，由於產量非常高，收入表現良好，高於去年同期。此外，由於我們的目標客戶計畫持續提升特種產品的銷售，因此特種產品的銷售也隨之成長。

Overall, prices were up. However, that was more than offset by higher costs. Costs were higher for two reasons. Our fixed costs, which are primarily paid in Canadian dollar, were up essentially only due to the more expensive Canadian dollar. Keeping in mind that at Acetex, we measure everything in U.S. dollars in our European and North American operations.

總體而言，價格上漲了。然而，成本上漲抵消了價格上漲帶來的額外影響。成本上漲有兩個原因。我們的固定成本主要以加幣支付，而成本上漲的原因主要在於加幣升值。需要注意的是，在Acetex，我們在歐洲和北美的業務中，所有業務都以美元計算。

Also, ethylene was up, and the increase in ethylene more than offset the slight increases that we had in product prices, resulting in a bit of a squeeze in margin. Our view is that that is the normal behavior that you would expect early (indiscernible) prior (indiscernible) turn of the cycle, where you're first going to get some increase in ethylene costs, or whatever the lowest item on the chain is and wherever chemical products you're talking about. As that price increases from the bottom it will squeeze the margin on the next products up until it has a chance to pass-through that increase and the margins extend (ph).

此外，乙烯價格上漲，其漲幅足以抵銷我們產品價格的小幅上漲，導致利潤率略有下降。我們認為，這是週期轉折初期（音頻不清晰）之前（音頻不清晰）預期的正常現象，首先是乙烯成本上漲，或者說，無論你指的是鏈條上最底層的產品，還是你所說的化學產品。隨著價格從底部開始上漲，它會擠壓後續產品的利潤率，直到有機會傳導到價格上漲，利潤率才會擴大。

So you always expect to get a bit of a compression margin before you get an improvement. And we think that is what is going on.

所以，在獲得改進之前，你總是會期望獲得一些壓縮餘裕。我們認為這就是正在發生的事情。

If you look at the quarterly remarks (indiscernible) for some of the larger integrated polyethylene and ethylene producers, (indiscernible) reflect an optimistic attitude, and somewhat improved results -- not as improved as the polyethylene levels but rather at the ethylene levels.

如果你看一些較大的綜合聚乙烯和乙烯生產商的季度報告（聽不清楚），（聽不清楚）反映出一種樂觀的態度，並且結果有所改善——不是像聚乙烯水平那樣改善，而是乙烯水平有所改善。

At AT plastics, just to remind you, purchase of its ethylene on a contract basis, where the cost is (indiscernible) potentially a blend of Alberta cost of production and U.S. Gulf market prices.

需要提醒您的是，AT 塑膠公司是根據合約購買乙烯的，其成本（音訊不清晰）可能是阿爾伯塔省生產成本和美國墨西哥灣市場價格的混合。

Turning from operations to our recent project announcement, we're very happy to announce (technical difficulty) for a methanol plant, acetic acid plant and the vinyl acetate plant in Saudi Arabia. Total capital budget is very close to $1 billion. We expect to build 500,000 tons of acid, 275,000 tons of VAM, 1.8 million tons of methanol -- all those in annual capacity.

從營運到我們最近宣布的項目，我們很高興地宣布，沙烏地阿拉伯的甲醇工廠、醋酸工廠和醋酸乙烯酯工廠（存在技術難題）。總資本預算接近10億美元。我們預計將建造50萬噸酸、27.5萬噸VAM和180萬噸甲醇——所有這些項目都具備年產能。

Our partner is NPIC -- also known as TASNEE Petrochemicals, an affiliate of the Saudi multibillion dollar (indiscernible) Company, and the IAC (ph) or National Industrialization Company. We will own 50 percent of the two acid yield (ph) businesses -- the acetic acid and the VAM business -- and 25 percent of the methanol.

我們的合作夥伴是沙烏地阿拉伯國家石油公司（NPIC），又稱塔斯尼石油化工公司（TASNEE Petrochemicals），是沙烏地阿拉伯一家價值數十億美元的公司（音訊不清晰）和國家工業化公司（IAC）的子公司。我們將擁有兩大酸生產業務（醋酸和VAM業務）50%的股份，以及25%的甲醇業務。

We expect to have 70 percent debt and 30 percent equity in the overall capital budget, resulting in an after-tax equity requirement of approximately $100 million US.

我們預計整體資本預算中將有 70% 的債務和 30% 的股權，因此稅後股權需求約為 1 億美元。

We expect to fulfill that equity need through the sale of acid technology, and the sale of our patented and proprietary integration technology to the pradutch (ph).

我們希望透過出售酸技術以及向 pradutch (ph) 出售我們的專利和專有整合技術來滿足該股權需求。

As you know, we have developed aner (ph) patent over the last few years -- unique technology for the integration of production of methanol and acetic acid, resulting in a very substantial capital saving on a project like this. And that is primarily through the elimination of the expensive and often difficult carbon monoxide production unit. In addition to the value received for the sale or licensing of the acid technology and the integration technology, we expect to receive the support of the British offset office of British Aerospace, and we appreciate their support in this project very much.

如您所知，我們在過去幾年中開發了一項專利——一項獨特的甲醇和乙酸一體化生產技術，為此類項目節省了大量資金。這主要歸功於取消了昂貴且通常難以操作的一氧化碳生產裝置。除了出售或授權酸技術和一體化技術所獲得的價值外，我們還期待獲得英國宇航集團英國補償辦公室的支持，我們非常感謝他們對本項目的支持。

The culmination of the technology value and the British offset support covers the majority of our equity requirements in the project. The engineering analysis is well underway, and has been for some time. We're just now moving into the phase of firming up the engineering, moving towards fixed-price bids -- fixed-price contracts -- and a financing package to match. We expect the financing to be primarily local Middle East financing sources on the debt. And, of course, the equity I have already discussed.

技術價值加上英國補償支持，最終滿足了我們在該專案中的大部分股權需求。工程分析工作進展順利，並且已經進行了一段時間。我們目前正進入工程確認階段，逐步轉向固定價格投標——固定價格合約——以及相應的融資方案。我們預計融資將主要來自中東當地的債務融資管道。當然，還有我之前討論過的股權。

This is really a major turning point for our Company. It changes us from being a regional player in the Acetyls business to the global player. At the present time, there are two global players in the Acetyls business -- and the two of them have over half of the total market. The three regional players, one in Europe -- that's obviously Acetex. One in the United States, and one in Asia -- this will make us the third global player. And we will, in our view, be the low-cost producer in Western Europe and the low-cost producer to the Far East.

這對我們公司來說確實是一個重大的轉捩點。它將我們從乙醯基業務的區域性參與者轉變為全球性參與者。目前，乙醯基業務有兩家全球性參與者，這兩家佔了超過一半的市場。三家區域性參與者，一家在歐洲—顯然是Acetex。一家在美國，一家在亞洲—這將使我們成為第三家全球性參與者。在我們看來，我們將成為西歐和遠東地區的低成本生產商。

With that, I would welcome your questions. Operator, questions please?

好了，歡迎大家提問。接線員，請問有問題嗎？

(Operator Instructions). Sam Kanes, Scotia Capital.

（操作員指令）。 Sam Kanes，蘇格蘭資本。

Your partner -- expressed direct or indirect -- or maybe it was misconstrued in the European chemical news article that reacted to your joint venture announcement that your partner is also looking for a partner. Could you discuss your joint venture agreement? And is that something that you expected? Or was that something that just simply was erroneous by the reporter of that article?

您的合作夥伴——無論是直​​接還是間接地表達——或者，那篇回應您合資公司公告的歐洲化學新聞文章可能誤解了您的合作夥伴也在尋找合作夥伴。您能談談您的合資協議嗎？這是您預料之中的事嗎？還是那篇文章的記者只是在誤傳？

I have seen the article that I think you are referring to, and that article actually came out, or was written, prior to our public announcement. As we (ph) -- felt more comfortable in making the announcement, (indiscernible) and talking about than we did in terms of when we actually made our public announcement. So that's why that article is a bit vague, because it was written prior to our announcement.

我看過你提到的那篇文章，那篇文章其實是在我們公開宣布之前發表的，或者說是寫成的。我們（音）－在宣布（音頻不清晰）和談論這件事時，感覺比我們實際公開宣布的時間更自在。所以那篇文章有點模糊，因為它寫在我們宣布之前。

Now, as to your specific question, what they referred to in that article was the fact that TASNEE is still looking for a methanol partner. What they are talking about there is that in addition to TASNEE and Acetex, there is potential for a third party to participate in the methanol project with a primary role of sustaining the methanol marketing.

現在，關於您的具體問題，他們在那篇文章中提到的是，TASNEE 仍在尋找甲醇合作夥伴。他們所說的是，除了 TASNEE 和 Acetex 之外，還有可能由第三方參與甲醇項目，主要負責維持甲醇行銷。

Okay. So that could be hypothetically someone like Methanex who on their conference call said they are snooping around two projects in the Middle East at the moment few (ph) days ago. Is that hypothetically possible?

好的。所以，假設是像Methanex這樣的公司，他們在幾天前的電話會議上說，他們目前正在偵查中東的兩個計畫。這在理論上可能嗎？

Well, I think as you phrase the question, it is. Because you're saying is that hypothetically possible for Methanex to be a partner in the project. Yes.

嗯，我認為正如你提問的那樣，是的。因為你說的是，假設Methanex有可能成為該計畫的合作夥伴。是的。

Okay. Moving on, you spent about $2 million in Q1 on property, plant (ph) and equipment -- this may be forgone. Was there anything specific with that? And what is your run rate this year on CapEx with your combined Company -- with AT Plastics?

好的。接下來，您在第一季花費了大約200萬美元用於物業、廠房和設備——這筆支出可能是可以忽略不計的。這其中有什麼具體細節嗎？今年，您與AT Plastics合併後的公司資本支出的運作率是多少？

Don, you want to take that one, please?

唐，你想拿那個嗎？

Sure. There's nothing significant in that number, Sam, other than the ongoing costs with our computer database upgrade -- which is just going live today, yesterday, and through to the middle of May.

當然。山姆，這個數字沒什麼特別的，除了我們電腦資料庫升級的持續成本——今天、昨天開始，一直到五月中旬。

In MD&A (ph), we say that the annual maintenance level was 3.5 for the Acetyls business and 5 to 6 for the specialty polymers and films business. And in the fourth quarter we've got a small turnaround scheduled, which typically is $2 million at the Pardies facility.

在管理層討論與分析（MD&A）中，我們表示乙醯基業務的年度維護水準為3.5，特種聚合物和薄膜業務的年度維護水準為5到6。第四季度，我們計劃進行小規模的周轉，在Pardies工廠通常需要200萬美元。

So, this year, we will be in that 11.5 to 12 U.S. dollars range for the entire year.

因此，今年全年我們的價格將處於 11.5 至 12 美元的範圍內。

Okay. Moving on, I just (indiscernible) that volumes were down 4 percent. Maybe that was presumably related to more selling pressure by the competitor -- couldn't (ph) make the VAM. And you partly offset that with your own VAM in the same fashion. Was that your expected run rate? Or was there small unplanned outage in Q1 -- when you see the (indiscernible) side?

好的。接下來，我剛才（音訊不清楚）說銷量下降了4%。這或許是因為競爭對手加大了拋售壓力──無法達成VAM（對沖基金）。你們也用自己的VAM部分抵銷了這個影響，也是以同樣的方式。這是你們預期的運行率嗎？還是說，第一季出現了小規模的非計劃中斷——也就是（音訊不清晰）方面的情況？

No, there was no other channel, everything ran well. It was just over 100,000 tons for the quarter.

沒有，沒有其他管道，一切運作良好。本季的產量略高於10萬噸。

I was assuming it was down 4 million, so I'm just looking to see what -- if anything was there, differentiating you from year-over-year at that run rate --?

我假設它下降了 400 萬，所以我只是想看看——如果有的話，與去年同期相比，在這個運行率下有什麼不同——？

I'm sorry, the phoneline (indiscernible) you said were down -- what was down (multiple speakers)

抱歉，您說的電話線（聽不清楚）斷了——斷了的是什麼（多個揚聲器）

You are down 4 million tons year-over-year -- Q1 '03 versus Q1 '04. Maybe they're disconnecting now for various reasons, I just was expecting a little bit more, I guess, production -- given how happy you were with your latest turnaround I guess and its success. But is there a natural degradation going on now? Of your catalysts, but from a higher base or nothing special?

你們的產量年減了400萬噸－2003年第一季與2004年第一季相比。也許現在由於各種原因，產量有所下降，我本來預計產量會稍微高一些——我想，考慮到你們對最近的轉型和成功感到多麼高興。但是現在你們的催化劑產量是否正在自然下降？是來自更高的基數，還是沒有特別的？

Actually, what's going on Sam, was what we have been able to do is to -- when VAM is tight, we can actually make a bit more VAM. But it's at the expense of making a little bit less acetic acid.

實際上，Sam，我們能做的是——當VAM緊張時，我們實際上可以多生產一點VAM。但這是以減少一點乙酸產量為代價的。

Okay. I hope that's (indiscernible) where that was going. Is that chemically -- is it chemically -- maybe it's just simply with inventories on hand as opposed to chemistry -- the chemistry can't give you any flexibility, or does it? Can you tweak it to make more VAM from the same amount of the acetic acid unit?

好的。我希望這就是（音訊不清晰）事情的進展。從化學角度來說——也許只是因為庫存問題，而不是化學問題——化學方法無法提供任何靈活性，對吧？可以調整一下，用同樣數量的乙酸裝置生產出更多的VAM嗎？

That's right.

這是正確的。

Is there a limit as to how much you can do that?

您能做到的程度有限制嗎？

Yes -- I'm not (indiscernible) exactly sure of the exact number, but it's very limited. But we are able to do it.

是的——我不太確定具體數字，但數量非常有限。不過我們有能力做到。

A little bit. Okay. Thank you.

有一點。好的。謝謝。

(Operator Instructions). Marco Pentek (ph), GMP Securities.

（操作員指示）。 Marco Pentek（音譯），GMP證券。

I just want to follow up on that -- given that you have got a maintenance turnaround plan for Q4 if this year and I reckon this is a smaller one. But the fact that you have been, certainly for the last two quarters, operating at or above (indiscernible) capacity, will you have, do you think, the ability to prebuild inventory, to basically cover your sales opportunities when that maintenance turnaround happens?

我想跟進一下這個問題——假設您今年第四季度有一個維護週轉計劃，而且我估計這個計劃規模較小。但考慮到您過去兩個季度的營運情況，您的產能一直處於或高於（音訊不清晰）產能，您認為在維護週轉發生時，您是否有能力預先建立庫存，以基本覆蓋您的銷售機會？

Yeah, frankly, there is no choice. You have to be able to run your business continuously and supply your customer needs. You have to manage your inventory to allow for the turnaround.

是的，坦白說，別無選擇。你必須能夠持續經營你的業務，滿足客戶的需求。你必須管理好你的庫存，以便週轉。

The plant continues to run better as we -- as our people in France work hard to make that happen. We have moved from a point where when we got the plant it was 330,000 (ph) tons of nameplate running at 270. We did an expansion to take it to 400,000 nameplates, and then we got to that level. We're now running at consistently above 100,000 a quarter. And in terms of our own analysis, we tend to think of the capacity today now as about 420 or 425,000 annualized.

在我們法國員工的努力下，工廠的運作狀況持續改善。工廠剛開始運作時，額定產能為33萬噸，運轉速度為270噸。後來我們進行了擴建，將產能提升到40萬噸，最終達到了這個水準。現在，我們每季的產量穩定在10萬噸以上。根據我們自己的分析，我們傾向於認為目前的年產能約為42萬至42.5萬噸。

But to answer your specific question, we will make sure that we manage the operation and manage the sales versus the production properly so that we will manage our inventory and supply our customer needs consistently through the turnaround.

但要回答您的具體問題，我們將確保我們管理營運並妥善管理銷售與生產，以便我們能夠管理庫存並在整個週轉過程中始終如一地滿足客戶需求。

Okay. And would the same thing be true on VAM in terms of your current effective annualized capacity? And could you give us (ph) what that number might be?

好的。那麼，就您目前的有效年化產能而言，VAM 的情況是否也一樣呢？您能告訴我們這個數字是多少嗎？

In the VAM, our normal capacity of produce is 150,000 tons. Then we do 40,000 tons of toiling (ph) with another Company in Spain. So a total of 190,000 of the shift with (technical difficulty) Kanes asked about, that Kenneth Vidalin answered, is a slight shift that results in a small increase in VAM capacity. Something in the range of 10 percent or less. And that is why shifting the production of the CO and acetylene in the combined gas unit in the plant.

在VAM，我們的正常產能為15萬噸。然後我們與西班牙的另一家公司合作，每年生產4萬噸。因此，Kanes詢問的（技術難題）總計19萬噸的輪換，Kenneth Vidalin回答說，只是輕微的輪換，導致VAM產能略有提升。大約在10%或更少的範圍內。這就是為什麼要將工廠聯合氣體裝置的一氧化碳和乙炔生產轉移到聯合氣體裝置的原因。

So you sort of can't have full blast both because there is a bit of interface between the acid and VAM. But the masking capacity of either one these days is, say, 420 of acid or 150 plus or 10 percent on VAM. So, this last quarter, I think, gives you a good indication of what can be done.

所以你不可能同時達到最佳效果，因為酸和VAM之間存在一些介面。但目前兩種材料的掩蔽能力大約是酸的420%，或是VAM的150%以上或10%。所以，我認為最後一個季度的數據很好地說明了可以採取哪些措施。

Okay. Switching to AT Plastics -- one of the things that was a potential opportunity, that you're looking at, was a VAM swap agreement. And wondering if you could just give us an update whether there has been any progress in that regard?

好的。關於轉投AT Plastics—您正在考慮的一個潛在機會是VAM互換協議。您能否向我們介紹一下這方面目前是否有任何進展？

I cannot, really. We're still in discussions. It has not progressed as quickly or as well as I would've liked. But, I cannot comment much past that at this point.

真的沒辦法。我們還在討論中。進展不如我預期的那麼快，也不太順利。不過，目前我無法發表更多評論。

Okay. You have -- in your press release, you talk about your specialty mix increasing before participating in commodity markets, take advantage of favorable pricing. Can you just give us some insight into that? And what you're seeing from that perspective? And what the implications might be to the average price per ton -- price per pound in conjunction with that?

好的。您在新聞稿中提到，在進入大宗商品市場之前，您的特殊產品組合會增加，以便利用有利的價格。您能否就此提供一些見解？您從這個角度看到了什麼？這對每噸平均價格，甚至每磅價格，可能會​​產生什麼影響？

Jerry (indiscernible), take that one please?

傑瑞（音頻不清楚），請拿走這個好嗎？

Marco, we really have been pleased as we have talked before over the last year in our mix improvement, resulting in a 7.6 percent year-over-year improvement for the quarter, and about 6 percent increase from the fourth quarter. So we continue to have that impact.

馬可，正如我們之前提到的，我們對去年產品組合的改善感到非常滿意，本季同比增長7.6%，環比第四季度增長約6%。所以，我們將繼續保持這種成長勢頭。

In general, we have that 15 to 20 cents a pound price premium for a specialty product. So as our total volumes grow in specialty, we continue to have that nice price impact on our overall business.

一般來說，我們的特色產品每磅價格會高出15到20美分。因此，隨著我們特色產品總銷量的成長，我們整體業務將繼續享受到良好的價格效應。

So, despite tough pricing late in the year last year, we have continued to move our prices up above the commodity rates over the last two quarters.

因此，儘管去年年底定價困難，但在過去兩個季度中，我們仍繼續將價格提高到高於商品價格的水平。

So when you talk about the increased participation in commodity markets, did you find that the commodity price increased more than the specialty price -- (indiscernible) you shifted, and is that what your expectation is looking into Q2?

因此，當您談到商品市場參與度的提高時，您是否發現商品價格的漲幅超過了特種商品價格——（音頻不清晰）您改變了看法，這是您對第二季度的預期嗎？

The commodity prices as we entered the first quarter of this year -- commodity prices are driven primarily by demand -- global demand, actually, did pick up. As we have talked before -- when that happens, when the margins start to make sense for us on the commodity, we do now have the flexibility to participate a little bit more heavy than in the past. So that's really what's happening there.

今年第一季度，大宗商品價格——大宗商品價格主要受需求驅動——實際上，全球需求確實回升了。正如我們之前所說——當這種情況發生時，當大宗商品的利潤率開始對我們有利時，我們現在就有靈活性，可以比過去更積極地參與其中。所以，這就是目前的情況。

I think, year-over-year, we would say commodity prices were relatively flat, while premium prices have moved up.

我認為，與去年同期相比，大宗商品價格相對持平，而溢價則上漲。

Okay. (multiple speakers)

好的。 （多位發言者）

Marco, this is Brooke, if I can just add something on that. Because I think there's a slight semantics issue that maybe I will just take the opportunity to (indiscernible) with.

馬可，我是布魯克，請容許我補充一下。因為我覺得這裡面有點語意上的問題，或許我可以藉此機會（音頻不清晰）補充一下。

We call it mix. It's not really mix in a classic accountant analysis of a mix. What it really is perhaps more actively expressed as, is our target account program works hard to improve our total tons sold into premium markets at premium prices for customers who have special needs. And the way we measure it is really it's by the improvement in that number of pounds. That's not really mix. It is whatever it is. It is just as I described it.

我們稱之為「組合」。它並非傳統會計分析中所說的「組合」。更確切地說，它實際上是我們的目標客戶計劃，致力於提高我們以高價向高端市場銷售產品的總噸數，以滿足有特殊需求的客戶的需求。我們衡量它的方式實際上是透過銷售量增加的磅數。這並非真正的“組合”，而是“無論它是什麼”。正如我所描述的。

As a separate issue, opportunities present themselves to take advantage of pricing movements on the more commodity grade products. And we try to take advantage of that.

另外一個問題是，利用更多商品級產品的價格變動來獲利的機會也隨之而來。我們努力抓住這些機會。

So, in a pure accounting sense, you talk about mix as your proportion of total sales. When we say specialty mix, we really don't mean that, we mean improvement in the pounds sold to specialty customers.

所以，從純粹的會計角度來說，產品組合指的是產品在總銷售額中所佔的比例。我們所說的特色產品組合，其實並非指產品組合本身，而是指提高向特色客戶銷售產品的重量。

Okay. And -- sorry. The last thing I just wanted to ask was -- Brooke, on the last conference call, you talked about how the Films Business was performing fairly poorly, which was a function of overcapacity in the industry. Can you give us any update in terms of any changes that have happened or what your expectations might be for that business balance of year? I mean, aside from the whole seasonality aspect of that business?

好的。抱歉。我最後想問的是──布魯克，上次電話會議上，你提到電影業務表現相當糟糕，這是產業產能過剩造成的。你能不能跟我們分享一下發生了什麼變化，或者你對今年電影業務的預期是什麼？我的意思是，除了電影業務的季節性因素之外？

Well, Marco, as you mentioned, seasonality is important in that business. The reality of the agricultural world is that the majority of the sales -- two-thirds of sales volume is shipped in the second and third quarter for the (indiscernible) business. That's important to point out.

嗯，Marco，正如你所說，季節性對這個行業來說很重要。農業產業的實際情況是，大部分銷售額——三分之二的銷售額是在第二季和第三季出貨的。這一點很重要。

In terms of the bigger issue, the strategic issue -- which is a fact of the cost structure of our Films Business, is too high relative to the production because of the lack of utilization. What that calls for is, ideally, to get our business combined with someone else's business -- either by merger, by buying or by selling. And we're pursuing, directly (ph), those sort of alternatives. At the same time as having a very aggressive program to try and reduce the actual operating costs -- particularly on the raw materials feedstocks for the Films Business.

就更大的問題而言，策略問題——也就是我們電影業務成本結構的一個現實——由於利用率不足，成本相對於製作成本過高。理想的做法是，將我們的業務與其他公司的業務合併—無論是透過合併、收購或出售。我們正在直接尋求這類替代方案。同時，我們也制定了一項非常積極的計劃，試圖降低實際營運成本——尤其是電影業務的原材料成本。

So, we don't have any quick answer yet on solutions to the issue. But I think the path was identified and we're working on it.

所以，我們目前還沒有找到解決這個問題的快速答案。但我認為我們已經找到了解決方案，並且正在努力中。

Thank you.

謝謝。

I'm sorry I cannot give you a more straight answer on that.

很抱歉我無法就此給您更直接的答覆。

That's fine, thank you.

好的，謝謝。

Mr. Wade, there are no further questions at this time. I will now turn the call back to you. Please continue with your presentation or closing remarks.

韋德先生，現在沒有其他問題了。現在我將把電話轉回給您。請繼續您的演講或結束語。

Well, again, I would like to thank you very much for taking the time to dial in to our conference call. As I have said again and again, our policy on information is to be as open and as straightforward as we possibly can be. The only exception is on competitive pricing information and things like that.

好的，再次感謝您撥打我們的電話會議。正如我一再強調的，我們的資訊政策是盡可能公開透明。唯一的例外是競爭性定價資訊之類的。

We welcome the opportunity to help all of you who are partners in the business to understand our business better. And if you have any information request at any time, please contact us and we will do the best we can to get you to any information that you need. Thanks again for calling in today, and we will talk to you next quarter. Bye.

我們非常高興有機會幫助各位合作夥伴更了解我們的業務。如果您有任何資訊需求，請隨時聯絡我們，我們將竭誠為您提供所需的資訊。再次感謝您今天的來電，我們下個季度再見。再見。

Ladies and gentlemen, that does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your line.

女士們，先生們，今天的電話會議到此結束。感謝您的參與，請您掛斷電話。