CNH Industrial NV (CNHI) 2023 Q2 法說會逐字稿

Hello, and welcome to the CNH Industrial Second Quarter Earnings Conference Call. I would now like to hand the call over to Jason Omerza, Head of Investor Relations. Please go ahead.

您好，歡迎參加凱斯紐荷蘭工業集團第二季度收益電話會議。我現在想將電話轉給投資者關係主管 Jason Omerza。請繼續。

Thank you, Kevin. Good morning and good afternoon to everyone. We would like to welcome you to the webcast and conference call for CNH Industrial's Second Quarter Results for the period ending June 30, 2023. This call is being broadcast live on our website and is copyrighted by CNH Industrial. Any other use, recording or transmission of any portion of this broadcast without the expressed written consent of CNH Industrial is strictly prohibited. .

謝謝你，凱文。大家早上好，下午好。歡迎您參加凱斯紐荷蘭工業集團截至 2023 年 6 月 30 日第二季度業績的網絡廣播和電話會議。本次電話會議在我們的網站上進行直播，版權歸凱斯紐荷蘭工業集團所有。未經凱斯紐荷蘭工業集團明確書面同意，嚴禁以任何其他方式使用、錄製或傳輸本廣播的任何部分。 。

Hosting today's call are CNH Industrial's CEO, Scott Wine; and CFO, Oddone Rocchetta. They will use the material available for download from the CNH Industrial website.

主持今天電話會議的是凱斯紐荷蘭工業集團 (CNH Industrial) 首席執行官 Scott Wine；首席財務官奧多內·羅切塔 (Oddone Rocchetta)。他們將使用可從凱斯紐荷蘭工業網站下載的材料。

Please note that any forward-looking statements that we might be making during today's call are subject to the risks and uncertainties mentioned in the safe harbor statement included in the presentation material. Additional information pertaining to factors that could cause actual results to differ materially is contained in the company's most recent annual report on Form 10-K as well as other periodic reports and filings with the U.S. Securities and Exchange Commission and the equivalent reports and filings with authorities in the Netherlands and Italy.

請注意，我們在今天的電話會議中可能做出的任何前瞻性陳述均受到演示材料中安全港聲明中提到的風險和不確定性的影響。有關可能導致實際結果出現重大差異的因素的更多信息包含在公司最新的 10-K 表格年度報告以及其他定期報告和向美國證券交易委員會提交的文件以及向當局提交的同等報告和文件中在荷蘭和意大利。

The company presentation includes certain non-GAAP financial measures. Additional information, including reconciliation to the most directly comparable U.S. GAAP financial measures is included in the presentation material.

公司演示文稿包括某些非公認會計準則財務指標。演示材料中還包含其他信息，包括與最直接可比的美國公認會計準則財務指標的調節。

I will now turn the call over to Scott.

我現在將把電話轉給斯科特。

Thank you, Jason, and thanks, everyone, for joining our call. In the second quarter, we delivered a solid set of results with record margins in both agriculture and construction. The impact of our CNH business system is accelerating, and we recorded our highest ever level of price over cost, both in dollar and percentage terms.

謝謝杰森，也謝謝大家加入我們的電話會議。第二季度，我們取得了一系列穩健的業績，農業和建築業的利潤率均創歷史新高。我們的離岸人民幣業務系統的影響正在加速，我們創下了有史以來最高的價格與成本水平（無論是美元還是百分比）。

Profitability was particularly strong in the second quarter, with results exceeding our 2024 margin targets. Our ability to deliver record margins with moderate revenue growth is indicative of the earnings power we are building. In June, our EMEA team delivered record retail sales, providing helpful momentum as we enter the second half. We also achieved our highest production of North American high horsepower tractors since 2015, but are still aggressively working to reduce backlog and restock our dealers in this fundamental product category.

第二季度的盈利能力尤其強勁，超過了我們 2024 年的利潤目標。我們能夠以適度的收入增長實現創紀錄的利潤率，這表明我們正在建立盈利能力。 6 月份，我們的 EMEA 團隊創造了創紀錄的零售額，為我們進入下半年提供了有益的動力。我們還實現了自 2015 年以來北美大馬力拖拉機的最高產量，但仍在積極努力減少積壓，並為我們的經銷商補充這一基本產品類別的庫存。

Across the business, strong execution and focus on serving customers drove our success. Our Lean Manufacturing programs are developing more efficient processes across the company. These initiatives are rooted in expanding productivity, improving quality and eliminating waste and have become a tenet of our culture. Make it simple is one of my favorite cultural beliefs, and it is helping us streamline our business, and you can see the early results in our earnings strength.

在整個業務中，強大的執行力和對客戶服務的專注推動了我們的成功。我們的精益製造計劃正在整個公司範圍內開發更高效的流程。這些舉措植根於提高生產力、提高質量和消除浪費，並已成為我們文化的信條。化繁為簡是我最喜歡的文化信仰之一，它正在幫助我們簡化業務，您可以看到我們盈利實力的早期成果。

Consolidated revenue for the company was $6.6 billion, up 8% over last year's second quarter. Industrial net sales were up 6% year-over-year, reflecting a 19% increase in construction sales and improved shipments of high horsepower tractors in North America.

該公司的綜合收入為 66 億美元，比去年第二季度增長 8%。工業淨銷售額同比增長 6%，反映出建築銷售額增長 19%，以及北美大馬力拖拉機出貨量的增加。

Agriculture saw less robust sales growth in Q2, but we still see solid overall ag fundamentals. Our lighter ag sales in the second quarter were primarily driven by 2 factors: first, while our team in South America delivered strong retail share performance in the quarter and year-to-date, much like earlier in the year, the demand environment in the second quarter was shaky.

第二季度農業銷售增長不太強勁，但我們仍然看到整體農業基本面穩健。我們第二季度較輕的農產品銷售主要由兩個因素推動：首先，雖然我們在南美洲的團隊在本季度和年初至今實現了強勁的零售份額表現，就像今年早些時候一樣，但南美洲的需求環境第二季度不穩定。

With short-term demand in Brazil slightly lower than expected, we reduced shipments to maintain lean dealer inventories; second, shipments of our new patriot sprayer were delayed due to production ramp-up issues and quality considerations. We will get those products to our customers in the second half.

由於巴西短期需求略低於預期，我們減少出貨量以維持經銷商庫存精益；其次，由於產量提升問題和質量考慮，我們的新型愛國者噴霧機的發貨被推遲。我們將在下半年向客戶提供這些產品。

In North America, first half combined demand was exceptionally strong. We are proactively working with our dealers to spur retail sales of both new and used combines in the coming quarters to mitigate potential inventory growth. We remain confident in our full year sales guidance even with targeted production cuts.

在北美，上半年的綜合需求異常強勁。我們正在積極與經銷商合作，在未來幾個季度刺激新舊聯合收割機的零售銷售，以減輕潛在的庫存增長。即使有針對性的減產，我們對全年銷售指引仍然充滿信心。

Industrial EBIT was up 26% on strong price over cost as we finished the quarter with an EBIT margin of almost 14%. Earnings per share was $0.52 for the quarter and $0.87 for the first half, marking our best ever start to the year. Derek Nielson and his agriculture team set new quarterly records for gross and EBIT margins. This is not just a record second quarter, but a record for any quarter. Their impressive execution across products, brands and distribution, coupled with the determined elimination of waste from our production processes enable us to better serve our dealers and customers.

由於價格高於成本，工業息稅前利潤增長了 26%，本季度末我們的息稅前利潤率接近 14%。本季度每股收益為 0.52 美元，上半年每股收益為 0.87 美元，這是我們今年有史以來最好的開局。德里克·尼爾森 (Derek Nielson) 和他的農業團隊創造了毛利率和息稅前利潤的新季度記錄。這不僅是第二季度創紀錄的，也是任何季度創紀錄的。他們在產品、品牌和分銷方面令人印象深刻的執行力，加上堅決消除生產過程中的浪費，使我們能夠更好地為經銷商和客戶服務。

Our Construction segment also recorded record results in the second quarter for the first time, generating net sales over $1 billion. Stefano Pampalone and his team introduced a plethora of new products at CONEXPO, and they are increasing manufacturing throughput to improve customer delivery. We continue to see solid benefits from our Sampierana acquisition. We started taking orders in North America for model year '24 products in June, and production slots for 2023 are full for most products in most markets. High horsepower tractor production is now fully booked and assigned to retail customers throughout 2023, and global demand for this segment remains high. We are taking orders into 2024 now and we see order backlog, like pricing, normalizing above pre-pandemic levels.

我們的建築業務第二季度也首次創下了創紀錄的業績，淨銷售額超過 10 億美元。 Stefano Pampalone 和他的團隊在 CONEXPO 上推出了大量新產品，他們正在提高製造產量以改善客戶交付。我們繼續看到收購 Sampierana 帶來的實實在在的好處。我們於 6 月份開始在北美接受 '24 車型年產品的訂單，大多數市場的大多數產品 2023 年的生產名額已滿。大馬力拖拉機的生產現已全部預訂完畢，並在 2023 年分配給零售客戶，全球對該細分市場的需求仍然很高。我們現在正在接受 2024 年的訂單，我們看到訂單積壓（例如定價）已正常化到大流行前的水平以上。

Our customers are increasingly asking for our suite of precision technologies. Precision Components net sales contribution increased 21% year-over-year in the second quarter with a steady growth of factory-fit elements. We continue to accelerate development and delivery of improved technical solutions for our customers. We launched the New Holland straddle tractor, specifically designed for narrow vineyards that require stream maneuverability and compact dimensions. These new tractors will bolster our commanding presence in the orchard and vineyard segments when they ship later this year.

我們的客戶越來越需要我們的精密技術套件。隨著工廠裝配元件的穩定增長，第二季度精密元件淨銷售額貢獻同比增長 21%。我們繼續加快為客戶開發和交付改進的技術解決方案。我們推出了紐荷蘭跨騎式拖拉機，專為需要溪流機動性和緊湊尺寸的狹窄葡萄園而設計。這些新型拖拉機將於今年晚些時候發貨，將增強我們在果園和葡萄園領域的主導地位。

We also published our 2022 sustainability report during the quarter. The multiple initiatives illustrated they provide proof that our commitment to world-class environmental and stewardship for our company, our communities and our end customers. The construction team is making impressive progress in their pursuit of profitable growth. Our 2024 construction EBIT margin target of 5.5% to 6.5% was a significant stretch from our previous low baseline, but we surpassed that at 6.8% in the second quarter and we will likely be in that target range for the full year. Sampierana is proving to be the right investment for us. It gives us both mini excavator IP and enhanced electrification capabilities that we are already integrating into other products.

我們還在本季度發布了 2022 年可持續發展報告。這些多項舉措證明了我們對公司、社區和最終客戶的世界級環境和管理的承諾。施工團隊在追求盈利增長方面取得了令人矚目的進展。我們的 2024 年建築業息稅前利潤率目標為 5.5% 至 6.5%，較之前的低基準大幅增長，但我們在第二季度超過了 6.8%，並且全年可能會處於該目標範圍內。事實證明，Sampierana 對我們來說是正確的投資。它為我們提供了小型挖掘機 IP 和增強的電氣化功能，我們已經將其集成到其他產品中。

We recently opened a new assembly facility in Central Italy, expanding our production capacity for many excavators and the new many track loaders, both of which we will soon export to North America. Construction continued to benefit from strength in the North American market, especially for light equipment. We are leaning into the customer synergies we have with our ag distribution network to create incremental construction sales opportunities with our New Holland brand.

我們最近在意大利中部開設了一家新的裝配工廠，擴大了許多挖掘機和許多新履帶式裝載機的生產能力，這兩種設備我們很快都將出口到北美。建築業繼續受益於北美市場的強勁勢頭，尤其是輕型設備。我們正在利用我們與農業分銷網絡之間的客戶協同效應，通過我們的 New Holland 品牌創造增量建築銷售機會。

All this plus much more value we're working to unlock to take margins still higher in years to come, demonstrates why our construction business is an important part of our portfolio. Our company strategy is centered around 5 key pillars: customer-inspired innovation; technology leadership; brand and dealer strength; operational excellence; and sustainability stewardship.

所有這些加上我們正在努力釋放的更多價值，以在未來幾年獲得更高的利潤率，這證明了為什麼我們的建築業務是我們投資組合的重要組成部分。我們公司的戰略圍繞 5 個關鍵支柱：以客戶為導向的創新；技術領先；品牌及經銷商實力；卓越運營；和可持續性管理。

Today, I want to focus on our advances in operational excellence, especially our CNH Business System, or CBS, which is a key contributor to our $550 million plus cost reduction target by 2024. CBS' set of tools and an aspiration to leverage lean to constantly improve the way we run our business and serve our customers and a commitment to using Kaizen to engage our employees and drive sustainable improvements. Whenever I travel to our plants around the world, I see consistent use of our daily management system to prioritize and solve systemic issues.

今天，我想重點介紹我們在卓越運營方面的進步，特別是我們的 CNH 業務系統 (CBS)，它是我們到 2024 年實現 5.5 億美元以上成本削減目標的關鍵貢獻者。CBS 的一套工具以及利用精益管理的願望不斷改進我們經營業務和服務客戶的方式，並承諾利用 Kaizen 來調動員工積極性並推動可持續改進。每當我前往我們世界各地的工廠時，我都會看到我們一致使用我們的日常管理系統來確定優先級並解決系統問題。

Our leadership team uses strategy deployment to ensure rigorous execution of our most important priorities to achieve breakthrough results. The overriding goals of CBS are margin expansion through operational excellence and revenue growth through constantly improving execution and innovation.

我們的領導團隊利用戰略部署來確保嚴格執行我們最重要的優先事項，以取得突破性的成果。 CBS 的首要目標是通過卓越運營來擴大利潤，並通過不斷改進執行和創新來增加收入。

What does this mean in practical terms? As an example for revenue growth, we are accelerating our time to market by eliminating waste and rework and our new product development processes. For margins, we are improving our module design concepts and Friedrich Eichler, our new Chief Technology Officer, brings a wealth of experience to help drive that effort. Across our manufacturing plants, we are empowering our teams to refine processes to improve throughput and quality. I would like to highlight a recent example at our Contagem plant in Brazil, where the team held a Kaizen to improve their production throughput. They addressed logistics bottlenecks and implemented a standard inspection checklist, making the process significantly more efficient.

這在實踐中意味著什麼？作為收入增長的一個例子，我們通過消除浪費和返工以及新產品開發流程來加快上市時間。為了提高利潤，我們正在改進我們的模塊設計理念，我們的新任首席技術官弗里德里希·艾希勒 (Friedrich Eichler) 帶來了豐富的經驗來幫助推動這一努力。在我們的製造工廠中，我們正在授權我們的團隊改進流程，以提高產量和質量。我想重點介紹最近在巴西 Contagem 工廠的一個例子，該團隊舉行了 Kaizen 活動以提高生產量。他們解決了物流瓶頸並實施了標準檢查清單，使流程顯著提高了效率。

The result was a 58% decrease in fleet inventory build up, a 14% increase in the daily line rate and a total annual cost benefit of $2.3 million. This is only one example of the many Kaizens we're doing across the company and more than twice the rate of 2022, and we are starting to see the impact in our results as CBS continues to expand, our results will as well.

結果是機隊庫存減少了 58%，每日線路利用率提高了 14%，年度總成本效益達到 230 萬美元。這只是我們在全公司範圍內開展的眾多改善措施之一，其速度是 2022 年的兩倍多，隨著 CBS 的不斷擴張，我們開始看到其對我們業績的影響，我們的業績也將如此。

I will now turn the call over to Oddone to take us through the financial results.

現在我將把電話轉給奧多恩，讓我們了解一下財務業績。

Thank you, Scott, and good morning, good afternoon to everyone on the call. Second quarter net sales of industrial activities of almost $6 billion were up 7% year-over-year at constant currency. This was mainly driven by favorable mix and pricing in both equipment businesses, and by higher shipments in construction.

謝謝你，斯科特，祝所有參加電話會議的人早上好、下午好。第二季度工業活動淨銷售額近 60 億美元，按固定匯率計算同比增長 7%。這主要是由於兩個設備業務的有利組合和定價以及建築業出貨量的增加推動的。

Adjusted net income for the quarter was $711 million with adjusted diluted earnings per share of $0.52, up $0.09 on the back of the ongoing strong operating performance. The effective tax rate was 24% in the quarter, and the full year tax rate will likely be in the 25% to 26% range. Free cash flow from industrial activities in the quarter was nearly equal to last year, up $386 million, while the first half cash absorption is about $370 million lower than last year.

該季度調整後淨利潤為 7.11 億美元，調整後攤薄每股收益為 0.52 美元，由於持續強勁的經營業績而增長了 0.09 美元。本季度的有效稅率為 24%，全年稅率可能在 25% 至 26% 範圍內。本季度工業活動產生的自由現金流與去年幾乎持平，增加了 3.86 億美元，而上半年現金吸收量比去年減少了約 3.7 億美元。

Looking at the segments. Agricultural sales were $4.9 billion, up 5% at constant currencies, supported by strong pricing, improved factory deliveries for large equipment and favorable mix. Net sales were up in all regions, except South America, whose contribution to global agricultural sales is down to 18% from 20% last year.

看看片段。農業銷售額為 49 億美元，按固定匯率計算增長 5%，這得益於強勁的定價、大型設備工廠交付量的改善以及有利的產品組合。除南美洲外，所有地區的淨銷售額均有所增長，南美洲對全球農產品銷售的貢獻從去年的 20% 降至 18%。

Gross margin was a record 27%, we are continuing our trajectory of very favorable price of our cost as we push now more on cost efficiencies and some of last year's inflationary headwinds go away. Although we still experienced unfavorable product costs for higher purchasing economics in EMEA and South America. We have lower freight costs and multiple improvements in our operations as a result of our CBS efforts.

毛利率達到創紀錄的 27%，我們正在繼續保持非常優惠的成本價格軌跡，因為我們現在更多地提高成本效率，並且去年的一些通脹阻力已經消失。儘管歐洲、中東和非洲和南美洲的採購經濟性較高，但我們仍然經歷了不利的產品成本。由於 CBS 的努力，我們的貨運成本降低了，運營也得到了多項改進。

High carryover pricing and cost inflation are persisting, but we will see both moderates as the year progresses with the price cost relationship remaining positive. Net prices will revert to the historical level, and there is no intention of lowering lease prices. This applies to construction as well. Increases in SG&A are largely driven by labor cost inflations and R&D spend was higher as we invest in the future of our products.

高結轉定價和成本通脹仍然存在，但隨著時間的推移，我們將看到這兩種情況都趨於緩和，價格與成本關係保持正向。淨價將恢復到歷史水平，並且無意降低租賃價格。這也適用於建築。 SG&A 的增長主要是由勞動力成本通脹推動的，而隨著我們對產品未來的投資，研發支出也隨之增加。

Adjusted EBIT in agriculture increased by $158 million to reach $821 million with a margin of 16.8%, up 280 basis points, mostly driven by the gross margin improvement. Since Scott already spent some time covering our main achievements in the construction business, I will focus on the financial KPIs for the last quarter. At over $1 billion construction net sales were up 20% at constant currency, driven by better volume and mix in North America and APAC, offsetting lower sales in South America.

農業調整後息稅前利潤增長 1.58 億美元，達到 8.21 億美元，利潤率為 16.8%，增長 280 個基點，主要是由於毛利率改善。由於 Scott 已經花了一些時間介紹我們在建築業務方面的主要成就，因此我將重點關注上季度的財務 KPI。受北美和亞太地區銷量和組合改善的推動，建築淨銷售額按固定匯率計算增長了 20%，超過 10 億美元，抵消了南美銷售額的下降。

Gross margin was 16%, up 220 basis points, mainly due to higher volumes and pricing. Adjusted EBIT was $72 million, up 47% year-over-year, with a margin of 6.8%. For our Financial Service businesses, net income was $94 million, substantially flat compared to the second quarter of 2022. We experienced favorable volumes in all regions, but this was offset by margin compression, higher risk costs and increased labor costs. We also had a lower tax rate compared to last year.

毛利率為 16%，增長 220 個基點，主要是由於銷量和定價的增加。調整後息稅前利潤為 7200 萬美元，同比增長 47%，利潤率為 6.8%。對於我們的金融服務業務，淨利潤為 9400 萬美元，與 2022 年第二季度相比基本持平。我們在所有地區都實現了良好的銷量，但這被利潤率壓縮、風險成本上升和勞動力成本增加所抵消。與去年相比，我們的稅率也較低。

Retail originations were $2.8 billion in the quarter. The management portfolio, including JVs, at the end of the period, was $26 million. The receivable balance greater than 30 days past due as a percentage of receivables was 1.8%, largely driven by delinquencies in Brazil, where a large concentration of payments is due every May and creates a seasonal spike at the end of the second quarter.

本季度零售額為 28 億美元。截至期末，包括合資企業在內的管理投資組合為 2600 萬美元。逾期 30 天以上的應收賬款餘額占應收賬款的比例為 1.8%，這主要是由於巴西的拖欠情況造成的，巴西每年 5 月都有大量付款集中到期，並在第二季度末出現季節性高峰。

We are confident that our collection efforts will bring the past dues back to lower levels in the coming quarters. Our capital allocation priorities continue to be investing in our business, maintaining a healthy balance sheet and credit ratings and returning money to our shareholders. We completed $98 million of share repurchases during the quarter, which is the highest level ever in one quarter, and we are continuing to buy back shares in the third quarter under our existing $300 million repurchase program started last year.

我們相信，我們的催收工作將使過去的會費在未來幾個季度恢復到較低水平。我們的資本配置優先事項繼續是投資於我們的業務、維持健康的資產負債表和信用評級以及向股東返還資金。我們在本季度完成了 9800 萬美元的股票回購，這是一個季度以來的最高水平，並且我們將根據去年啟動的現有 3 億美元回購計劃繼續在第三季度回購股票。

We have already announced that we intend to have an additional share buyback program in connection with the delisting from the New York Stock Exchange. To event, we continue to be confident that the regulation changes needed for a simple delisting with concentration in a time frame, allowing us to be single listed on the New York Stock Exchange by the end 2023. More specific details on the Milan delisting and the related stock buyback program will be shared as soon as possible.

我們已經宣布，我們打算實施與紐約證券交易所退市相關的額外股票回購計劃。到目前為止，我們仍然相信，在一個時間範圍內進行簡單退市所需的監管變化，使我們能夠在 2023 年底前在紐約證券交易所單一上市。有關米蘭退市和相關股票回購方案將盡快公佈。

Now we'll now turn it back to Scott.

現在我們將其轉回給斯科特。

Thank you, Oddone. For our 2023 industry outlook, most of our estimates remain unchanged, but we have slightly lowered our projections in South America for combines and heavy construction. We also expect heavy construction equipment in APAC to be slightly worse than originally expected. On the other hand, we project slightly better full year industry demand for light construction equipment in both North and South America and for heavy equipment in Europe. We are reaffirming our previous guidance levels. We are catching up on our order backlog and staying vigilant to ensure that we keep a tight balance on dealer inventory. It naturally vary seasonally, but we are committed to taking the necessary actions to keep our dealers positioned for success this year and every year to come.

謝謝你，奧多內。對於 2023 年行業前景，我們的大部分預測保持不變，但我們略微下調了南美洲聯合收割機和重型建築的預測。我們還預計亞太地區的重型建築設備將略差於最初的預期。另一方面，我們預計北美和南美輕型建築設備以及歐洲重型設備的全年行業需求將略有改善。我們重申之前的指導水平。我們正在處理積壓訂單並保持警惕，以確保經銷商庫存保持緊平衡。它自然會隨季節變化，但我們致力於採取必要的行動，讓我們的經銷商在今年和未來的每一年取得成功。

Where we land in the net sales guidance range will largely depend on retail sales levels, which is why retail sales execution is a primary focus in the second half. As previously announced, we have cut factory production on low horsepower tractors, which will be down about 20% in the second half. We will, of course, continue to build as many high horsepower tractors as possible in North America.

我們在淨銷售指導範圍內的位置將在很大程度上取決於零售銷售水平，這就是為什麼零售銷售執行是下半年的主要焦點。正如之前宣布的，我們已經削減了低馬力拖拉機的工廠產量，下半年產量將下降約20%。當然，我們將繼續在北美製造盡可能多的大馬力拖拉機。

We are also reaffirming our SG&A guidance of up 5% or less. Admittedly, we saw a higher increase in the first half, but cost of the last 2 quarters will be in line with or below the cost of the 2022 second half. Last quarter, we said that 2023, we may approach or even meet our 2024 EPS targets from Capital Markets Day of $1.70 per share. With a strong first half behind us, we now have more data to suggest that we will meet or exceed that target in 2023.

我們還重申 SG&A 指導值上漲 5% 或更少。誠然，我們看到上半年的增幅較高，但最後兩個季度的成本將與 2022 年下半年的成本持平或更低。上個季度，我們表示，到 2023 年，我們可能會接近甚至實現資本市場日設定的 2024 年每股收益 1.70 美元的目標。上半年的強勁表現已經過去，我們現在有更多數據表明我們將在 2023 年達到或超過該目標。

As we move into the back half of the year, we are encouraged by our results in Agriculture and Construction segments. We are well positioned to build off this momentum as we continue to optimize our business. Our new product offerings and tech stack are consistently improving and continuously expanding their contribution to profitable growth. These developments take time, however, so our short-term growth is more reliant upon market share performance and dealer inventory management.

隨著下半年的到來，我們對農業和建築領域的業績感到鼓舞。隨著我們繼續優化我們的業務，我們已做好充分準備來鞏固這一勢頭。我們的新產品和技術堆棧不斷改進，並不斷擴大對盈利增長的貢獻。然而，這些發展需要時間，因此我們的短期增長更多地依賴於市場份額表現和經銷商庫存管理。

We held firm in market share in the first half and expect to gain in the rest of the year, and we are confident that we are controlling dealer inventory and stressing retail execution as well as anyone in the industry. We will increase the pace of CBS, strategic sourcing and SG&A cost reduction programs, which will accelerate into 2024 and beyond.

我們在上半年保持了穩固的市場份額，並預計在今年剩餘時間裡會有所增長，我們有信心控制經銷商庫存並強調零售執行力以及業內的任何人。我們將加快 CBS、戰略採購和 SG&A 成本削減計劃的步伐，該計劃將加速到 2024 年及以後。

In closing, I would like to thank our entire CNH team for their dedication, hard work and inspiration. That concludes our prepared remarks, and I'll open the line for questions.

最後，我要感謝整個 CNH 團隊的奉獻、辛勤工作和靈感。我們準備好的發言到此結束，我將開始提問。

(Operator Instructions)

（操作員說明）

The first question today comes from Nicole DeBlase of Deutsche Bank.

今天的第一個問題來自德意志銀行的 Nicole DeBlase。

Maybe just starting with what happened with the North America spur production in the quarter. Can we just get a little bit more detail on why the delays start to production and whether or not you think you can kind of make up for that in the second half?

也許只是從本季度北美刺激生產的情況開始。我們能否更詳細地了解為什麼延遲開始生產以及您是否認為可以在下半年彌補這一點？

Sure, Nicole. I'm really proud of Vilmar Fistarol, who took over the North American business this year. We did a transition from the old sprayer to the new Patriot sprayer, which we were really, really excited about the features and benefits that it brings. The model year changeovers are often challenging, we've had a much higher turnover in our Benson factory than we would normally have had, and the transition did not go as well as expected. Rather than take risk on shipping products to our dealers that didn't meet our quality standards. We halted production, ensured that we had everything right, they're now -- we are now shipping those products.

當然，妮可。我為今年接管北美業務的 Vilmar Fistarol 感到非常自豪。我們從舊的噴霧器過渡到了新的愛國者噴霧器，我們對它帶來的功能和好處感到非常非常興奮。車型年份的轉換通常具有挑戰性，我們本森工廠的營業額比平時要高得多，而且轉換的進展並不如預期。而不是冒險將不符合我們質量標準的產品運送給我們的經銷商。我們停止了生產，確保一切順利，現在我們正在運送這些產品。

We'll get them all out in the second half, but really just a prudent effort by Vilmar and his team to ensure that we're delivering the highest quality. When you introduce a really good new product like that. You want to make sure that, that's what's delivered to our customers, not something that doesn't perhaps meet their standards or hours. And -- but really pleased that those are already starting to be delivered and we'll fulfill that in the third and fourth quarter.

我們將在下半場把它們全部拿出來，但實際上只是維爾瑪和他的團隊的謹慎努力，以確保我們提供最高的質量。當你推出這樣一個非常好的新產品時。您要確保這就是交付給我們客戶的東西，而不是可能不符合他們的標准或時間的東西。而且 - 但非常高興這些已經開始交付，我們將在第三和第四季度實現這一目標。

Okay. Understood. And then maybe just secondly on what's going on in South America. Are you guys now happy with your current dealer inventory levels there? Or would you say there's more to go with respect to inventory curtailment?

好的。明白了。其次也許是關於南美洲正在發生的事情。你們現在對目前的經銷商庫存水平滿意嗎？或者您認為在庫存削減方面還有更多工作要做？

No. Certainly, nothing more we need to do on inventory curtailment there. I mean we took our medicine in the quarter. We really feel like -- remember, the fundamentals in Brazil are still quite strong. It's still a strong ag economy. The farmer income was pressured a little bit because of the dollar weakening and some soft commodity prices weakening. But overall, the fundamentals for the market are quite solid, and we are very well positioned.

不。當然，我們不需要在庫存削減方面採取更多措施。我的意思是我們在本季度吃藥了。我們真的感覺——記住，巴西的基本面仍然相當強勁。它仍然是一個強勁的農業經濟。由於美元走弱以及部分軟商品價格走弱，農民收入受到一定壓力。但總體而言，市場的基本面相當穩固，我們的定位非常有利。

We still have company inventory because we didn't ship it to our dealers. So it's not like we are at any risk of losing market share. We had really good market share there in the quarter, gained share in combines, held our own in tractors. And we feel like we're very, very capable of performing better in the second half as we've already taken the -- we've leaned out our inventories going into the second half.

我們仍然有公司庫存，因為我們沒有將其運送給經銷商。因此，我們並不面臨失去市場份額的風險。本季度我們在那裡擁有非常好的市場份額，在聯合收割機領域獲得了份額，在拖拉機領域保持了自己的份額。我們覺得我們非常非常有能力在下半年表現得更好，因為我們已經在下半年減少了庫存。

Our next question comes from Mig Dobre of Baird.

我們的下一個問題來自貝爾德 (Baird) 的米格·多布雷 (Mig Dobre)。

Yes.I guess I'm looking for a little more color, if I may, on how you see demand in large ag playing out. Any insight into how farmers are thinking into 2024 as well, that would be helpful.

是的。如果可以的話，我想我正在尋找更多關於您如何看待大型農業需求的信息。任何有關農民如何看待 2024 年的見解都會有所幫助。

Mig, what we're seeing in cash crop really globally is still continued positive demand signals as we said in our prepared remarks, we're going to make as many high horsepower tractors as we possibly can. The second half is always better for us in combines. There is -- what we've heard from dealers the used inventory, not of our products, but our competitive products on combine specifically has gone up at a much higher level than it has been previously.

米格，我們在全球範圍內看到的經濟作物仍然是持續的積極需求信號，正如我們在準備好的講話中所說，我們將盡可能多地生產高馬力拖拉機。下半場對於我們來說總是更好。我們從經銷商那裡聽說，二手庫存，不是我們的產品，而是我們聯合收割機上的競爭產品，其水平比以前高得多。

So we are being careful to make sure we're dialing in the retail programs not only for new but for used products as well with our dealers. And Oddone's financial services business is really capable of and smart about how we do those things. But there's been a little bit of caution, not to deal -- our dealer inventories are in good shape for -- on our combines across. But I think people are just anticipating what can happen as the used inventory start to grow, and we're proactively getting after that.

因此，我們非常謹慎地確保我們不僅針對新產品而且針對二手產品以及我們的經銷商制定零售計劃。 Oddone 的金融服務業務確實有能力並且很聰明地了解我們如何做這些事情。但有一點謹慎，不要在我們的聯合收割機上進行交易——我們的經銷商庫存狀況良好。但我認為人們只是預計隨著二手庫存開始增長會發生什麼，我們正在積極應對這一情況。

So really, the North American market for large ag still is very positive for us. And we don't see signs of that slowing down.

事實上，北美大型農業市場對我們來說仍然非常積極。我們沒有看到這種放緩的跡象。

Understood. As you mentioned, financial services, pretty sizable increase in the managed portfolio. So I guess I'm sort of curious as to how you see that progressing going forward. And also revenue as a percentage of the managed portfolio has remained fairly steady despite interest rate increases.

明白了。正如您提到的，金融服務領域的管理投資組合大幅增加。所以我想我有點好奇你如何看待這一進展。儘管利率上升，但收入佔管理投資組合的百分比仍然相當穩定。

I guess the way I'm sort of interpreting that is you're essentially trying to offer good financing deals for your end customers. Is that a proper interpretation? Are you essentially -- services as a tool?

我想我的解釋是，您本質上是在嘗試為最終客戶提供良好的融資交易。這是正確的解釋嗎？您本質上是服務作為工具嗎？

Look, the growth of the portfolio is a mix of nominal growth because we have higher prices of the equipment, and also some increase in penetration. So we are financing more of the equipment to retail -- to end customers, right?

看，投資組合的增長是名義增長的混合體，因為我們的設備價格更高，而且滲透率也有所增加。因此，我們正在為更多零售設備（最終客戶）提供融資，對吧？

But also, of course, we had some growth in the dealer inventories over the last 12 months. So we have volume growth in there as well. We've had -- of course, we have had interest rates increasing all over the world. As we all know, we have -- we tend to match our funding with our receivables.

當然，過去 12 個月我們的經銷商庫存也有所增長。所以我們的銷量也有所增長。當然，我們已經看到世界各地的利率都在上漲。眾所周知，我們傾向於將我們的資金與我們的應收賬款相匹配。

So we are increasing the price and the cost for customers. Unfortunately, of financing but we're probably not doing at the full pace, and we have had some margin compression, in particular, last year when we were delaying some of the deliveries by 6 to 9 months of tractors and combines we have been generally honoring the condition that we had agreed with the customers when they order the tractor that comply. We will revert to that and we will have -- we target a margin of around 2% on assets, on financial services, and I'm confident we're going to get back there.

所以我們正在提高價格和客戶的成本。不幸的是，融資方面，但我們可能沒有全速進行，而且我們的利潤率有所壓縮，特別是去年，當時我們將部分拖拉機和聯合收割機的交付推遲了 6 至 9 個月，我們總體上遵守我們在客戶訂購符合要求的拖拉機時與客戶達成一致的條件。我們將恢復到這一點，我們的目標是資產和金融服務的利潤率為 2% 左右，我相信我們會回到這個目標。

Our next question comes from Steven Fisher of UBS.

我們的下一個問題來自瑞銀集團的史蒂文·費舍爾。

Can you just give us a sense for how the pricing was in ag by region? I'm just trying to figure out if the volumes were down in every one of your regions. I know you talked about the sprayers, I guess in North America and the South American dynamics. But I guess I'm just wondering how broadly were the volumes down, and in which categories and why?

您能否讓我們了解一下各地區的定價情況？我只是想弄清楚你們每個地區的銷量是否都下降了。我知道你談到了噴霧器，我想是在北美和南美的動態。但我想我只是想知道銷量下降的範圍有多大，哪些類別以及為什麼？

So in terms of units, we were marginally down globally. We were up on high-horsepower tractors in North America, up in combined in North America in terms of shipments. We are -- in terms of nominal sales, so dollar sales were down only in South America compared to the second quarter of last year.

因此，就單位而言，我們在全球範圍內略有下降。我們在北美的大馬力拖拉機數量有所增加，北美地區的總出貨量也有所增加。就名義銷售額而言，與去年第二季度相比，僅南美洲的美元銷售額有所下降。

Okay. And sorry, what was Europe -- was volumes were...

好的。抱歉，歐洲是什麼——銷量是……

Volumes were flat, but there was a lot of pricing in Europe. So I mean unit volume were flattish, but a lot of pricing, so sales were up in Europe.

銷量持平，但歐洲定價較高。所以我的意思是單位銷量持平，但定價很高，因此歐洲的銷量有所上升。

But just a reminder, in Europe, we had our best June retail performance. So the team did a really nice job of creating opportunities for a better second half, and we're pleased about that momentum.

但提醒一下，在歐洲，我們六月份的零售表現是最好的。因此，球隊在為下半場創造更好的機會方面做得非常好，我們對這種勢頭感到高興。

Okay. And then with such good margins this quarter in ag, but volumes down, I mean, how should we expect operating leverage to look as you actually get volumes growing again more broadly? I mean, to what extent is there even more margin upside here when you get that positive leverage and more cost benefits?

好的。然後，本季度農業利潤率如此之高，但銷量下降，我的意思是，當銷量實際上在更廣泛的範圍內再次增長時，我們應該如何預期運營槓桿？我的意思是，當你獲得積極的槓桿作用和更多的成本效益時，這裡的利潤率上升幅度有多大？

The second quarter is typically the quarter with the best margin in the year. That wasn't the case on the last year where we had a stronger third quarter. We think we're going to revert to the normal seasonality this year. So I expect the third quarter to be sequentially lower than the second quarter in terms of margin, but in line or higher than last year.

第二季度通常是一年中利潤率最高的季度。去年的情況並非如此，我們的第三季度表現更為強勁。我們認為今年我們將恢復正常的季節性。因此，我預計第三季度的利潤率將連續低於第二季度，但與去年持平或更高。

And what would be the biggest factor in making the third quarter lower .

導致第三季度業績下滑的最大因素是什麼？

Regional mix. Third quarter, typically, we have European plants down. We sell less in Europe. So it's mainly a mix and a sales story. .

區域組合。通常，第三季度我們的歐洲工廠都會停產。我們在歐洲的銷量較少。所以這主要是一個混合和銷售故事。 。

Our next question comes from Kristen Owen of Oppenheimer.

我們的下一個問題來自奧本海默的克里斯汀·歐文。

A lot of puts and takes on the production commentary I was wondering if you can sort of consolidate that for us, help us understand what the production cadence looks like across say, high horsepower, low horsepower, combine and construction for the remainder of the year.

對生產評論有很多看法，我想知道您是否可以為我們整理一下，幫助我們了解今年剩餘時間的生產節奏，例如高馬力、低馬力、聯合收割機和施工。

And then if you could put that in context of some of the retail execution that you mentioned, how we should think about sort of mix of retail versus wholesale going into the channel?

然後，如果您可以將其放在您提到的一些零售執行的背景下，我們應該如何考慮進入渠道的零售與批發的混合？

Yes. Well, for North America, we had Grand Island and New Holland our combined plants. And they really ran full for the first half of the year, and I suspect they will continue to do so. With racing coming back online, and I just couldn't be more proud of the work that they're doing there to both improve production and improve quality at the same time, that's encouraging.

是的。嗯，對於北美，我們有格蘭德島和紐荷蘭聯合工廠。他們上半年確實是滿負荷運轉，而且我懷疑他們還會繼續這樣做。隨著比賽重新回歸線上，我對他們在提高產量和質量的同時所做的工作感到非常自豪，這是令人鼓舞的。

They also supply our Fargo plant, so that's given them an opportunity there. So we'll continue to run basically our North American plants at capacity for the remainder of the year. Brazil, obviously, we've taken a little bit of a slowdown to match demand there.

他們還為我們的法戈工廠供貨，所以這給了他們在那裡的機會。因此，在今年剩餘時間內，我們的北美工廠將繼續基本滿負荷運行。巴西，顯然，我們已經採取了一些放緩措施來滿足那裡的需求。

But across all of our regions, the Derek Neilson and his team have really got good, strong retail execution plans in the second half of the year. And with the products that we have introduced. We're very confident in our share positions. So we think we'll be able to take advantage of both markets being still solid and better share performance. So we're encouraged about where we stand heading into the second half.

但在我們所有的地區，德里克·尼爾森和他的團隊在下半年確實制定了良好、強大的零售執行計劃。以及我們推出的產品。我們對我們的股票地位非常有信心。因此，我們認為我們將能夠利用兩個市場仍然穩固和更好的股票表現的優勢。因此，我們對進入下半年的情況感到鼓舞。

Okay. And just to clarify, the mix of retail versus wholesale. I mean, you mentioned this focus on retail, but just as we're looking at the order book, has that trended back to normal? Just any color on that?

好的。澄清一下，零售與批發的混合。我的意思是，您提到了對零售的關注，但正如我們正在查看訂單簿一樣，這種趨勢是否已恢復正常？只是有什麼顏色嗎？

The order book is actually -- we just started taking orders in June. For cash crop, we're kind of booked out and we'll start taking orders for '24 here shortly. But no, we've got 6 to 9 months across the board. So we feel good about how we are standing from an order perspective.

訂單簿實際上是——我們六月份才開始接受訂單。對於經濟作物，我們的訂單已經被預訂一空，我們很快就會開始接受 24 年的訂單。但不，我們總共有 6 到 9 個月的時間。因此，從訂單角度來看，我們對自己的現狀感到滿意。

But even though there's an order in place, it takes a retail for dealers really to have spot for a new one. So that's where we're putting a lot of our energy right now. I think the team is dialed in on that, and we feel good about the performance we had in June and the ability to continue that throughout the rest of the year.

但即使已經有了訂單，經銷商也需要零售才能真正找到新訂單的位置。所以這就是我們現在投入大量精力的地方。我認為團隊已經開始關注這一點，我們對 6 月份的表現感到滿意，並且有能力在今年餘下的時間裡繼續保持這種表現。

Our next question comes from David Raso of Evercore ISI.

我們的下一個問題來自 Evercore ISI 的 David Raso。

First question is on margins. In the first half of the year, your margins were up 170 bps. But in the first half, your sales were up around 9.5%, but your SG&A was up 16%, the back half of the year, you're assuming revenue growth the same around 9.5% the half, but SG&A down 4%. So just given that notable swing from SG&A up 16% in the first half to now down 4% in the second half. Can you help us understand a little bit on the margins, we're talking operating margins here. Should we expect a similar margin improvement as we saw in the first half. I know the comps get a little harder, but I'm just trying to understand a little more.

第一個問題是關於利潤率的。今年上半年，你們的利潤率增長了 170 個基點。但上半年，您的銷售額增長了 9.5% 左右，但 SG&A 增長了 16%，下半年，您假設上半年收入增長約為 9.5%，但 SG&A 下降了 4%。因此，考慮到 SG&A 從上半年上升 16% 到現在下半年下降 4% 的顯著波動。您能否幫助我們了解一下利潤率，我們這裡討論的是營業利潤率。我們是否應該期待與上半年類似的利潤率改善？我知道比賽會變得更難，但我只是想了解更多。

It's a question of comps. Our SG&A grew a lot last year and in the second half were much higher than they were in the first half. So the comps are easier in the second half, getting to that level of SG&A is not going to be easier, for sure. I mean we are looking at different angles of it. But we set this target, and we've got to get there in the second half. So that's for the SG&A. .

這是一個比較問題。去年我們的銷售及管理費用增長了很多，下半年遠高於上半年。因此，下半年的比較會更容易，但達到 SG&A 的水平肯定不會更容易。我的意思是我們正在從不同的角度看待它。但我們設定了這個目標，我們必須在下半場實現這一目標。這就是 SG&A。 。

For the margin, as I said, we expect the second quarter margins to be the highest in the year, but we expect EBIT margin to be at the level, if not of last year in the third quarter, which was a very good quarter and then likely higher in the fourth quarter.

至於利潤率，正如我所說，我們預計第二季度的利潤率將是今年最高的，但我們預計第三季度的息稅前利潤率即使不是去年的水平，也是一個非常好的季度，那麼第四季度可能會更高。

Is it fair to say the margin for ag is also supposed to reach the '24, the targets this year?

可以公平地說，今年農業的利潤率也應該達到“24”的目標嗎？

Yes.

是的。

All right. That's helpful. And then on the pricing cadence, can you help us a little bit, you made a comment, I believe, we do not expect a lower price for '24 understand -- I mean it could be incentives, lower financing, we're not talking list. We're talking actual realized price. -- The way you're approaching the '24 order books when they open up soon, should we expect the price increase? Just trying to understand a little bit because I mean the price does seem like it's coming down maybe a little faster than people thought.

好的。這很有幫助。然後關於定價節奏，你能幫我們一點嗎，你發表了評論，我相信，我們預計 24 日不會有更低的價格，我的意思是這可能是激勵措施、較低的融資，我們不是談話清單。我們談論的是實際實現的價格。 -- 當 '24 訂單簿即將開放時，您接近訂單簿的方式，我們是否應該預期價格上漲？只是想了解一點，因為我的意思是價格確實似乎下降得比人們想像的要快一些。

Obviously, you're getting the cost outs and the price cost has been obviously very strong. But just so we little get a sense of sort of a demand indicator how you feel about pricing. Can you give us a little more color?

顯然，你正在付出成本，而且價格成本顯然非常強勁。但正因為如此，我們幾乎無法了解您對定價的感受。你能給我們多一點顏色嗎？

We think on a 2% to 3% price, pricing power or price increase, which is a mix of this price and discounts, of course.

我們考慮 2% 到 3% 的價格、定價能力或價格上漲，當然這是價格和折扣的組合。

Remember, we were very aggressive, maybe price leaders, many of the quarters over the last. So admittedly, prices are moving up from a very high level. So I think we're certainly not at all thinking about driving it, but we recognize with dealers are not willing to accept continued double-digit price increases. So I think getting back to a normalized price is a good thing for everyone. .

請記住，在過去的許多季度中，我們非常激進，也許是價格領先者。誠然，價格正在從一個非常高的水平上漲。所以我認為我們肯定不會考慮推動它，但我們認識到經銷商不願意接受持續兩位數的價格上漲。所以我認為恢復正常價格對每個人來說都是一件好事。 。

And our next question comes from Tami Zakaria of JPMorgan. .

我們的下一個問題來自摩根大通的塔米·扎卡里亞。 。

So I was wondering, could you maybe share some color on how much of the volume decline in ag was due to the delay in sprayer manufacturing versus, let's say, the weakness in South America you saw?

所以我想知道，您能否分享一些關於農業銷量下降有多少是由於噴霧機製造延遲造成的，以及您看到的南美洲的疲軟造成的？

It was probably 2/3 South America, and 1/3 sprayer production, give or take a little bit.

大概有 2/3 的南美洲和 1/3 的噴霧器產量，或多或少都有一點。

Got it. That's very helpful. And then can you update us on the over $550 million operational excellence savings. Do you still expect 1/3 this year and 2/3 next year?

知道了。這非常有幫助。那麼您能否向我們介紹超過 5.5 億美元的卓越運營節省成本的最新情況？您還預計今年1/3、明年2/3嗎？

No. I think we might have miscommunicated on that. We still expect more of that to happen in 2024. I think it would be more like 20% this year. And as we said, we're really encouraged by the CBS activities that we're getting really encouraged about pushing back on logistics costs that have crept in and some of the other costs. But really, the ramp-up of both CBS activities, our SG&A takeout, and our strategic sourcing starts to really hit the road. So most of that hits in 2024. .

不，我認為我們可能在這方面溝通有誤。我們仍然預計 2024 年會發生更多這種情況。我認為今年會增加 20% 左右。正如我們所說，我們對 CBS 的活動感到非常鼓舞，因為我們在降低已經悄然增加的物流成本和其他一些成本方面受到了很大的鼓舞。但實際上，CBS 活動、SG&A 支出以及戰略採購的增長開始真正上路。所以大部分會在 2024 年發生。

Our next question comes from Gabriele Gambarova of Banca Akros.

我們的下一個問題來自 Banca Akros 的 Gabriele Gambarova。

Yes. The first one is on your, say, relative performance in terms of revenues. Over the last couple of quarters, you trade your competitors. And I was wondering if this has to deal with your choices in terms of production, basically. And if this trend is going to possibly revert in the second half of the year.

是的。第一個是你的收入方面的相對錶現。在過去的幾個季度中，您與競爭對手進行交易。我想知道這是否與您在生產方面的選擇基本上有關。如果這種趨勢可能在今年下半年逆轉。

And the second one deals with your 2023 free cash flow guidance. Is it possible to understand what is your implied assumption in terms of working capital delta change.

第二個涉及 2023 年自由現金流指導。是否可以理解您在營運資本增量變化方面的隱含假設是什麼？

Well, for the first question on our revenue cadence vis-a-vis our competitors, I think the best place to look is just the second half guidance. Our guidance -- because we've kept inventories lean, we still have the opportunity to ship to demand or in some cases, replenish dealer inventory and those competitors that are taking down -- if they're having a sequential decrease it means probably they've got too high dealer inventory and can't ship in as much. So I think that explains how we got where we are. Oddone, do you want to take the...

好吧，對於關於我們相對於競爭對手的收入節奏的第一個問題，我認為最好的地方就是下半年的指導。我們的指導 - 因為我們保持庫存精簡，我們仍然有機會按需求發貨，或者在某些情況下，補充經銷商庫存和那些正在淘汰的競爭對手 - 如果他們連續減少，這意味著可能他們經銷商庫存過高，無法發貨。所以我認為這解釋了我們是如何走到今天這一步的。奧多恩，你想帶...

Yes. On the working capital, I mean, we were very lead on working capital on finished good inventories at the end of last year. So we're being a little bit more prudent at the end of what we expect to have at the end of this year. Of course, we're taking working capital out of the plants as we are becoming more efficient there, but we have some prudence on the overall balance of where we're going to be with -- end up with inventories at the end of the year, also depending on where we want to update our inventories today. .

是的。在營運資本方面，我的意思是，去年年底我們在成品庫存的營運資本方面處於領先地位。因此，我們對今年年底的預期更加謹慎。當然，隨著工廠效率的提高，我們正在從工廠中取出營運資金，但我們對我們將要達到的整體平衡持謹慎態度——最終在年底時獲得庫存。年，也取決於我們今天想要更新庫存的位置。 。

Our next question is from Jamie Cook of Credit Suisse.

我們的下一個問題來自瑞士信貸銀行的傑米·庫克。

I guess just 2 questions. One, -- can you just talk to your approach to the order book for 2024, whether you'll just open the by region, whether you'll just open the order book or open and close it and manage it throughout the year, specifically within the Farm Equipment segment.

我想只有兩個問題。一，--您能否談談您對 2024 年訂單簿的處理方法，是否只打開按地區，是否只打開訂單簿或打開和關閉它並全年管理它，具體來說在農業設備領域。

And then my second question, back on the $550 million in 2024, can you just remind me I think that assumes sort of a flattish type market. And if we have volumes, I'm just trying to think about, could we have above-average incrementals in 2024, if the volumes do there and we're assuming you get the majority of the $550 million.

然後我的第二個問題，回到 2024 年 5.5 億美元，你能提醒我一下，我認為這假設了一個平坦的市場。如果我們有銷量，我只是想考慮一下，到 2024 年我們的增量是否會高於平均水平，如果銷量達到了，並且我們假設您獲得了 5.5 億美元中的大部分。

So just to answer your second question, first, because it's easy. Yes, we can absolutely -- if we get volume upside have upside to that number. And I think the incrementals that we had in the second quarter kind of demonstrate what we can do. And what will happen is we're going to have a little bit less price, but also a lot less cost. So the mix of how we get there could be different. But certainly, the opportunity to overdeliver on the $550 million volume were to be higher is certainly there. .

首先回答你的第二個問題，因為這很容易。是的，我們絕對可以——如果我們的交易量有所上升，那麼這個數字就有上升空間。我認為第二季度的增量證明了我們可以做什麼。將會發生的事情是，我們的價格會降低一點，但成本也會降低很多。因此，我們實現這一目標的方式可能會有所不同。但當然，超額交付 5.5 億美元銷量的機會肯定是存在的。 。

So the order books for 2024, we're going to be -- we've gotten to the point where we'd like maintaining some level of discipline and having strong visibility. So we won't open up the entire year at one point. We'll probably do the first half of the year and then go into the second half because we'll have obviously the model year '25, pricing, we'll have to think about at that point.

因此，對於 2024 年的訂單，我們已經達到了希望保持一定程度的紀律並具有強大可見性的程度。所以我們不會在某一時刻開放一整年。我們可能會在今年上半年進行，然後進入下半年，因為我們顯然會有 25 年的車型，定價，我們必須在那時考慮。

But I think it's more of a -- not necessarily quarter-by-quarter, but it certainly won't be wide open as we go into it. But as we said with cash crop and the innovative products that we're bringing, we feel good about what the order of demand can be.

但我認為這更多的是——不一定是逐季度的，但當我們進入它時，它肯定不會完全開放。但正如我們對經濟作物和我們帶來的創新產品所說的那樣，我們對需求的順序感到滿意。

Our next question comes from Daniela Costa of Goldman Sachs.

我們的下一個問題來自高盛的丹妮拉科斯塔。

Just wanted to ask on 3 things real quick. But in terms of sort of capital allocation and just wondering if you could elaborate on how you're thinking about the buyback and going forward once the current one finishes, what are the priorities buyback versus M&A? Maybe comment on that. I'll ask one at a time.

只是想快速詢問三件事。但就資本配置而言，您是否可以詳細說明您如何考慮回購以及當前回購完成後的進展，回購與併購的優先事項是什麼？也許對此發表評論。我會一次問一個。

Yes, Daniela, we have -- we set up this buyback program in July last year for $300 million. We are executing on that. We are coming now pretty close to the end of it. What we have in our plan for the year since we are doing the delisting from Milan and single listing in New York, we expect that there will be some offloading of our shares from European investors, there will be likely higher demand for North American investors.

是的，丹妮拉，我們在去年 7 月設立了 3 億美元的回購計劃。我們正在執行這一點。我們現在已經接近尾聲了。自從我們從米蘭退市並在紐約單一上市以來，我們今年的計劃是，我們預計歐洲投資者將減持我們的股票，北美投資者的需求可能會更高。

But we are prepared, and we discussed with the Board last quarter, and we are prepared to have a specific program that will be announced where we announced -- what -- we get in the final days of the delisting, and that will be a considerable size. So we are keeping some balance sheet available for that.

但我們已經做好準備，上個季度我們與董事會進行了討論，我們準備製定一項具體計劃，該計劃將在我們宣布的地方宣布——我們在退市的最後幾天得到了什麼，這將是一個相當大的規模。因此，我們為此保留了一些可用的資產負債表。

Great. My -- one of my questions was actually going to be for an update on timing of delisting, which you've said sort of slightly before end of year last time, if that's still on track based on your...

偉大的。我的問題之一實際上是關於退市時間的更新，您上次在年底之前就說過，如果根據您的說法，退市時間仍在按計劃進行的話……

We think that we are -- we have all the elements for being online -- on track with this end of the year.

我們認為，我們已經具備了在線的所有要素，有望在今年年底前實現。

Okay. And then a final one, just on delinquencies. I guess what you show in the chart is still much longer -- much lower maybe than periods over history, but it started to creep up, whether do you think this has in any shape related to demand or interest rate situation or just is a normalization you see...

好的。然後是最後一個，就是關於拖欠的問題。我想你在圖表中顯示的時間仍然要長得多——可能比歷史上的時期低得多，但它開始緩慢上升，無論你認為這是否與需求或利率狀況有關，或者只是一種正常化你看...

It's mainly linked to the Brazilian portfolio. We don't see any increase in the other portfolios. We had some in India, but it's a very small portfolio. It's mainly Brazil. Brazil, we have a concentration of payments in the month of May, and we typically have higher past dues in the second -- at the end of the second quarter, which would typically reduce as the quarters move on.

它主要與巴西的投資組合有關。我們沒有看到其他投資組合有任何增加。我們在印度有一些，但這是一個非常小的投資組合。主要是巴西。巴西，我們的付款集中在五月份，並且通常在第二個季度末（第二季度末）的逾期未付款額較高，隨著季度的推移，逾期付款通常會減少。

And we are confident that we're going to get back to lower levels in the next couple of quarters. but there is really on the North American and European portfolio, we don't see any creeping of delinquencies.

我們有信心在接下來的幾個季度內恢復到較低水平。但在北美和歐洲的投資組合中，我們確實沒有看到任何拖欠行為。

The next question today comes from Michael Feniger of Bank of America. .

今天的下一個問題來自美國銀行的邁克爾·費尼格。 。

Scott, can we just frame you kept the 2023 sales guide, but you highlighted the sprayer issue in Brazil. Just curious if you could kind of frame how much of an impact that's having on the full year guide?

斯科特，我們可以假設您保留了 2023 年銷售指南，但您強調了巴西的噴霧器問題。只是好奇您能否說明一下這對全年指南有多大影響？

Zero impact on the full year guide. I mean that -- we are -- like I said in the prepared remarks and in some of the follow-on questions, the sprayer issue, it was a short-term issue done for the right reasons, but we'll make up -- we're already shipping those sprayers and we'll get the full allotment out to customers in the third and probably some into the fourth quarter. .

對全年指南的影響為零。我的意思是——我們——就像我在準備好的發言和一些後續問題中所說的那樣，噴霧器問題，這是一個出於正確原因而解決的短期問題，但我們會彌補—— - 我們已經在運送這些噴霧器，我們將在第三季度向客戶提供全部配額，可能會在第四季度向客戶提供部分配額。 。

So that was that. We took our medicine in Brazil in the quarter, so we don't have to take it again. So dealer inventories, it's really about driving retail performance. Rafale and team down there are really doing a nice job on market share. We've got great plans, I think, to continue to accelerate share gains in the second half. So therefore, with leaner inventories and better share, we should also get better performance. So we feel neither one of those would be repeated in the second half. In fact, there are tailwinds actually for going into the second half.

就是這樣。我們本季度在巴西吃過藥，所以我們不必再服藥。因此，經銷商庫存實際上是為了推動零售業績。陣風和那裡的團隊在市場份額方面確實做得很好。我認為，我們已經制定了宏偉的計劃，將在下半年繼續加速份額增長。因此，隨著庫存的精簡和份額的提高，我們也應該獲得更好的業績。所以我們認為這兩種情況都不會在下半場重演。事實上，進入下半年確實存在順風。

Great. And Scott, just it seems like you're taking a proactive approach on inventories. The slide you show with the different equipment categories and your company and dealer inventories -- when we get to the fourth quarter, how do we -- how does that chart look in terms of dealer inventories on a year-over-year level when we think of those equipment categories?

偉大的。斯科特，看來你們正在採取積極主動的庫存方法。您展示的幻燈片顯示了不同的設備類別以及您的公司和經銷商的庫存 - 當我們進入第四季度時，我們如何 - 當我們看到經銷商庫存的同比水平時，該圖表看起來如何想到那些設備類別？

We are anticipating that they're kind of at peak levels. Remember, on some of the cash crop, we're still behind. So what will happen is we'll decrease low horsepower inventory and will increase still some high-horsepower inventory. But on balance, we're trying to keep -- we've seen the benefits of it, right? When we keep our inventories lean, we get better customer attachment rates on the other side, we get the whole price better. It's just -- it's a lot of goodness, lower dealer flooring cost.

我們預計它們將達到峰值水平。請記住，在某些經濟作物上，我們仍然落後。因此，我們將減少低馬力庫存，並增加一些高馬力庫存。但總的來說，我們正在努力保持——我們已經看到了它的好處，對嗎？當我們保持庫存精簡時，我們會在另一方面獲得更好的客戶忠誠度，我們會獲得更好的整體價格。只是——它有很多優點，可以降低經銷商地板成本。

So we will -- I mean, part of what we have included in our guidance is continued healthy management or, in some cases, improved healthy management of dealer inventory.

因此，我的意思是，我們在指導中包含的部分內容是持續的健康管理，或者在某些情況下，改進經銷商庫存的健康管理。

And just a follow-up with that, Scott. Next year, is production in line with retail sales, you think, next year? Obviously, we'll have to see how retail plays out. But just in terms of how you're thinking of your production for -- versus your retail in 2024?

斯科特，這只是後續行動。您認為明年的產量與零售額是否一致？顯然，我們必須看看零售業的表現如何。但就您如何看待 2024 年的生產和零售而言？

That's where we would like to be. It's hard to tell, but that is an efficient way to run the business and how we would like to run it. I mean, obviously, if I could, I would just run on a direct pull system. We can't necessarily just -- it's complicated with our long logistics lead times and whatnot. But that would be the aspiration. .

這就是我們想要的。這很難說，但這是一種有效的業務運營方式，也是我們希望的運營方式。我的意思是，顯然，如果可以的話，我會在直接拉動系統上運行。我們不一定只是——由於我們的物流交貨時間較長等原因，情況變得很複雜。但這將是我們的願望。 。

The next question comes from Larry De Maria of William Blair.

下一個問題來自威廉·布萊爾的拉里·德·瑪麗亞。

First question. Are you taking any plan to spray orders for next year just yet, and just curious if there's any programs out and how they're looking -- if they are out there? And related to that, with this one smart spray collaboration. When is the commercial launch for green on green, targeted spraying, I think some competitors are out next year with that?

第一個問題。您是否正在製定明年的噴塗訂單計劃，只是想知道是否有任何計劃以及它們的情況如何 - 如果它們已經存在？與此相關的是，通過這一智能噴霧協作。綠色對綠色、定向噴灑的商業化何時推出，我想一些競爭對手明年就會推出這種產品？

Yes. So we are taking into the first quarter, partly maybe the first -- a little second quarter for sprayers. So that's good. We are -- we have not disclosed and it's partly because I don't think we know how quickly we're going to have that one spray solution integrated. Just a reminder, though, Raven is in -- are experts at Sprayer technology.

是的。因此，我們正在考慮第一季度，部分可能是第一季度，還有一點是噴霧機的第二季度。所以這樣很好。我們 - 我們還沒有透露，部分原因是我認為我們不知道我們將多快整合這一噴霧解決方案。不過提醒一下，Raven 是噴霧器技術方面的專家。

So -- and they had a relationship with Bosch even before us. I feel confident that we will not be delayed in any -- but we don't have a scheduled launch for that yet, but we recognize there's a competitive need to get that in market as quickly as we can.

所以——他們甚至在我們之前就與博世建立了合作關係。我相信我們不會被推遲——但我們還沒有計劃推出該產品，但我們認識到，競爭需要盡快將其推向市場。

Okay. And then I know you've refreshed your tractor lineup and then obviously, you had to deal with the strike and now you -- like you said, you're running kind of full tilt into the year-end on tractors. But can you talk a little bit about share? And if you think you can regain some of that share given the interruption or if that's a multiyear event? Or can you just talk about some of the trends there?

好的。然後我知道你已經更新了你的拖拉機陣容，然後顯然，你必須應對罷工，現在你——就像你說的，你正在全力以赴地對待拖拉機的年底。但你能談談分享嗎？如果您認為在中斷的情況下您可以重新獲得部分份額，或者這是一個多年的事件？或者您能談談那裡的一些趨勢嗎？

No. We're already seeing our ability to get some of that share back. I mean we feel really good about the stickiness of our customers there. But that is not really acceptable to me or anyone that we just get back to where we were because we felt like we were under-punching our weight there.

不。我們已經看到我們有能力收回部分份額。我的意思是，我們對那裡客戶的粘性感到非常滿意。但這對我或任何人來說都是不能接受的，我們只是回到原來的位置，因為我們覺得我們在那裡的體重不夠。

So -- but we've seen with the deliveries, the quality improvements that we're getting back to a -- I mean, I wouldn't even call it an acceptable share, but we were at an egregiously low level. We've gained, in the month of June, about 500 basis points. So we saw that start to creep up.

所以，但我們已經看到，隨著交付量和質量的提高，我們正在恢復到——我的意思是，我什至不會稱其為可接受的份額，但我們處於一個非常低的水平。 6 月份我們已經上漲了大約 500 個基點。所以我們看到這種情況開始蔓延。

And we believe that we've got the opportunity to continue to advance again, from low levels, but back to level. And then we're going to continue to invest in that product. It's an incredibly important product category for us. So both on the iron side and the technology side. you'll see us continue to lead in.

我們相信，我們有機會繼續再次前進，從低水平，但回到水平。然後我們將繼續投資該產品。這對我們來說是一個非常重要的產品類別。所以無論是在鋼鐵方面還是在技術方面。你會看到我們繼續領先。

But we feel really good about where we are currently with that Magnum product and then what the team is doing to get more and more of them out to our customers.

但我們對 Magnum 產品目前的狀況以及團隊正在採取的措施將越來越多的產品提供給我們的客戶感到非常滿意。

The next question is from Marta Bruska of Berenberg.

下一個問題來自貝倫貝格的瑪爾塔·布魯斯卡。

I would just ask, if you could please provide a little bit more color on Europe. So with channel indicators and some of your peers rather negative for this year for the region the SG&A shows still positive or flattish volume development year-to-date. Is that due to the product mix? And if so, the broader market in Europe is rather normalizing this year with potential upcycle maybe next year, can benefit from that next year or just continue to moderate performance over 4 years, please? And then I have one more.

我只想問一下，您能否提供更多有關歐洲的信息。因此，由於渠道指標和一些同行對該地​​區今年的表現相當消極，SG&A 顯示今年迄今為止的銷量發展仍然積極或持平。這是由於產品組合嗎？如果是這樣，歐洲更廣泛的市場今年相當正常化，明年可能會出現上行週期，明年可以從中受益，或者只是在 4 年內繼續溫和表現，好嗎？然後我還有一個。

Yes, Marta, there's some interruption in the line. But I would say this mixed picture in Europe, as always, many countries, different zones and also we have Middle East and Africa in Europe. And of course, we have Ukraine, which is potentially a large market and unfortunately disrupted. And so I would say, Southern Europe was most difficult this year. And of course, we have a large presence there. So Spain, Italy. Some of France, whereas Northern Europe was stronger. But we feel that we are doing a good work.

是的，瑪爾塔，線路有些中斷。但我想說的是，歐洲的情況好壞參半，一如既往，有許多國家、不同地區，歐洲也有中東和非洲。當然，我們還有烏克蘭，它可能是一個巨大的市場，但不幸的是受到了乾擾。所以我想說，今年南歐是最困難的。當然，我們在那裡有大量的存在。那麼西班牙、意大利。法國一些，而北歐則更強。但我們覺得我們做得很好。

We have been doing a good work with our dealers in the second quarter of this year, and we feel encouraged by the results we had, in particular in the month of June. I think it was at the beginning of the prepared remarks from Scott. So we think that we will -- we are really stimulating retail there and we will improve our situation significantly.

今年第二季度，我們與經銷商的合作非常順利，我們對所取得的成果感到鼓舞，特別是在六月份。我認為這是斯科特准備好的講話的開頭。因此，我們認為我們會——我們確實會刺激那裡的零售業，並且我們將顯著改善我們的狀況。

And then moving to Financial Services and some of the more volatile regions is Brazil. Can you do anything in terms of an adjustment to help the farmers realize that investing is probably we still want to make this year?

然後轉向金融服務業和巴西等一些波動較大的地區。您能否做一些調整來幫助農民認識到投資可能是我們今年仍然想做的？

I think there's somebody in the line that needs to go mute because we are hearing, at least from our side, we are hearing 2 voices together. So you were talking about Brazil, Marta, and ...

我認為隊伍中有人需要靜音，因為我們聽到，至少從我們這邊，我們同時聽到兩個聲音。所以你說的是巴西、瑪塔，還有……

Yes, more into kind of how do you managing that and whether you can do something with the lease term adjustments to kind of protect a little bit and stimulate the demand at the same time.

是的，更多的是你如何管理這一點，以及你是否可以通過租賃期限調整做一些事情，以保護一點並同時刺激需求。

Well, we -- as always, in financial services, we act both with our dealers with wholesale financing and with our customers with what we call the retail financing, Brazil retail financing is also influenced by government subsidies. And as you know, the programs for government subsidies are becoming smaller and smaller, and they get consumed pretty quickly in the year. We are extremely competitive.

嗯，我們一如既往，在金融服務領域，我們既與經銷商進行批發融資，又與客戶進行零售融資，巴西零售融資也受到政府補貼的影響。如您所知，政府補貼計劃變得越來越小，而且在一年內很快就消耗殆盡。我們極具競爭力。

We offer very fast service to our customers and to our dealers, and we think that we can -- we had a real help in getting -- in fetching those subsidies for the customers that are attractive in getting them. So we see ourselves as a service function to our dealers and to our brands to support their sales.

我們為客戶和經銷商提供非常快速的服務，我們認為我們可以——我們確實得到了幫助——為那些有吸引力的客戶獲取補貼。因此，我們將自己視為經銷商和品牌的服務職能，以支持他們的銷售。

And as there are no further questions at this time, that does conclude the CNH Industrial Second Quarter Earnings Conference Call. We thank you all for your participation, and you may now disconnect.

由於目前沒有其他問題，凱斯紐荷蘭工業集團第二季度收益電話會議就此結束。我們感謝大家的參與，現在您可以斷開連接了。