Carpenter Technology Corp (CRS) 2024 Q1 法說會逐字稿

Good day, and welcome to the Carpenter Technology Corporation First Quarter 2024 Fiscal Year Financial Results Conference Call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Mr. John Huyette, Vice President, Investor Relations. Please go ahead.

美好的一天，歡迎參加 Carpenter Technology Corporation 2024 財年第一季財務業績電話會議。 （操作員說明）請注意，正在記錄此事件。我現在將會議交給投資者關係副總裁 John Huyette 先生主持。請繼續。

Thank you, operator. Good morning, everyone, and welcome to the Carpenter Technology Earnings Conference Call for the fiscal 2024 First Quarter ended September 30, 2023. This call is also being broadcast over the Internet along with presentation slides. Please note, for those of you listening by phone, you may experience a time delay in slide movement.

謝謝你，接線生。大家早安，歡迎參加截至 2023 年 9 月 30 日的 Carpenter Technology 2024 財年第一季財報電話會議。本次電話會議也與簡報投影片一起透過網路進行廣播。請注意，對於那些透過電話收聽的人，您可能會遇到幻燈片移動的時間延遲。

Speakers on the call today are Tony Thene, President and Chief Executive Officer; and Tim Lain, Senior Vice President and Chief Financial Officer. Statements made by management during this earnings presentation that are forward-looking statements are based on current expectations. Risk factors that could cause actual results to differ materially from these forward-looking statements can be found in Carpenter Technology's most recent SEC filings, including the company's report on Form 10-K for the year ended June 30, 2023, and the exhibits attached to that filing.

今天電話會議的發言人是總裁兼執行長 Tony Thene；提姆‧萊恩 (Tim Lain)，資深副總裁兼財務長。管理階層在本收益報告中發表的前瞻性聲明是基於目前的預期。可能導致實際結果與這些前瞻性陳述有重大差異的風險因素可以在Carpenter Technology 最近向SEC 提交的文件中找到，包括該公司截至2023 年6 月30 日的10-K 表格報告以及所附的證物。該備案。

Please note that in the following discussion, unless otherwise noted, when management discussed the sales or revenue, that reference excludes surcharge. When referring to operating margins, that is based on adjusted operating income, excluding special items and sales, excluding surcharge. I will now turn the call over to Tony.

請注意，在下面的討論中，除非另有說明，否則當管理層討論銷售額或收入時，該參考內容不包括附加費。當提及營業利潤時，這是基於調整後的營業收入，不包括特殊項目和銷售額，不包括附加費。我現在將把電話轉給托尼。

Thank you, John, and good morning to everyone on the call today. I will begin on Slide 4 with a review of our safety performance. For the first quarter of fiscal year 2024, our total case incident rate was 2.1. This rate has been elevated over the last several quarters as we integrate a large number of new employees into our operations. We are focused on specific actions to maintain the lower severity and identify potential risks. Our target remains a 0 injury workplace, and we will continue to work tirelessly to achieve that target.

謝謝約翰，今天參加電話會議的每個人都早安。我將從投影片 4 開始回顧我們的安全績效。 2024 財年第一季度，我們的總個案發生率為 2.1。隨著我們將大量新員工納入我們的運營，這一比率在過去幾個季度有所上升。我們專注於採取具體行動來維持較低的嚴重性並識別潛在風險。我們的目標仍然是零傷害工作場所，我們將繼續不懈地努力實現這一目標。

Now let's turn to Slide 5 and a review of the first quarter. On our last earnings call, we provided an outlook for the first quarter of fiscal year 2024 and signaled operating income was expected to be flat or slightly up sequentially, even though we outperformed the fourth quarter expectations. That first quarter guidance represented a meaningful improvement compared to the historical trend of a sequential decline in profits in the first quarter of a fiscal year.

現在讓我們轉向幻燈片 5 並回顧第一季。在我們上次的財報電話會議上，我們提供了 2024 財年第一季的展望，並表示營業收入預計將持平或略有上升，儘管我們的表現超出了第四季度的預期。與本財年第一季獲利連續下降的歷史趨勢相比，第一季指引代表了有意義的改善。

Building on our operating momentum, we exceeded that guidance and reported first quarter operating income of $69 million, a 10% increase sequentially. Most notably, the SAO segment exceeded expectations for the quarter delivering $80.8 million in operating income, above the outlook we provided of $72 million to $77 million.

憑藉我們的營運勢頭，我們超出了預期，第一季營業收入達到 6,900 萬美元，比上一季成長 10%。最值得注意的是，SAO 部門本季的營業收入達到 8,080 萬美元，超出了預期，高於我們提供的 7,200 萬至 7,700 萬美元的預期。

Further, SAO realized an adjusted operating margin of 19.4%, growing from 16.8% in the previous quarter. This impressive margin expansion came as a result of targeted improvement in product mix, higher realized prices and continued focus on productivity. We continue to realize price gains on both contractual and transactional business. As evidenced at the beginning of October, we announced another price increase of 7% to 12% on our SAO transactional business.

此外，SAO 調整後營業利潤率達到 19.4%，高於上一季的 16.8%。這一令人印象深刻的利潤增長得益於產品組合的有針對性的改進、更高的實現價格以及對生產力的持續關注。我們繼續實現合約業務和交易業務的價格上漲。正如 10 月初所證明的那樣，我們宣布 SAO 交易業務再次提價 7% 至 12%。

We also generated $7.4 million of cash from operations during the quarter, maintaining a healthy liquidity of $366.4 million. Finally, we are positioned in a strong demand environment across our end-use markets, where our material solutions are valued by our customers.

本季我們也從營運中產生了 740 萬美元的現金，維持了 3.664 億美元的健康流動性。最後，我們處於最終用途市場的強勁需求環境中，我們的材料解決方案受到客戶的重視。

Now let's take a closer look at our demand outlook on Slide 6. Carpenter Technology produces specialized, highly engineered products that are essential to the function of critical applications across aerospace, defense, medical and other end-use markets. Our unique collection of assets and capabilities to produce these products are not easily replicated, and it requires decades of experience to generate the high quality needed to meet stringent industry standards.

現在，讓我們仔細看看投影片 6 上的需求前景。Carpenter Technology 生產專業化、高度工程化的產品，這些產品對於航空航太、國防、醫療和其他最終用途市場的關鍵應用的功能至關重要。我們生產這些產品的獨特資產和能力不容易複製，需要數十年的經驗才能產生滿足嚴格行業標準所需的高品質。

Demand for our difficult-to-manufacture products is exceeding industry supply, and we see tangible evidence of this. Our backlog continues to grow, setting new records every quarter. In the first quarter of fiscal year 2024, our backlog was up 5% sequentially and 32% year-over-year.

對我們難以製造的產品的需求超過了行業供應，我們看到了這一點的實際證據。我們的積壓訂單持續成長，每季都創下新紀錄。 2024 財年第一季度，我們的積壓訂單季增 5%，年增 32%。

We continue to raise prices with our most recent announcement earlier this month of a 7% to 12% increase on our SAO transactional business. Lead times remain at record levels and could be even longer as we are actively managing incoming orders. And customers continue to tell us their primary concern is surety of supply, asking when they can book more with us.

我們繼續提高價格，本月稍早我們宣布 SAO 交易業務價格上漲 7% 至 12%。由於我們正在積極管理收到的訂單，交貨時間仍保持在創紀錄的水平，甚至可能更長。客戶繼續告訴我們，他們最關心的是供應的保證，詢問何時可以向我們預訂更多產品。

We expect this demand environment to remain strong. In aerospace, OEMs continue to work to increase build rates, targeting levels exceeding pre-pandemic highs. Defense demand already growing is projected to accelerate due to geopolitical events. Medical demand continues on a steady climb due to strong trends such as aging population and focus on patient outcomes.

我們預計這種需求環境將保持強勁。在航空航太領域，原始設備製造商繼續努力提高建造率，目標水準超過疫情前的高點。由於地緣政治事件，預計已經增長的國防需求將加速成長。由於人口老化和對患者治療結果的關注等強勁趨勢，醫療需求持續穩定攀升。

And demand for our premium products in our other markets is also projected to remain high due to ongoing energy investment needs, light-duty vehicle builds and semiconductor capacity expansion.

由於持續的能源投資需求、輕型汽車製造和半導體產能擴張，預計其他市場對我們優質產品的需求也將保持在高位。

As always, there is active discussion in the general marketplace about near-term demand. For example, even most recently this week, some aerospace OEMs discussing build rate target adjustments and ongoing delivery challenges within the supply chain or the impact of disruption to vehicle manufacturing associated with workers' strike.

與往常一樣，整個市場對近期需求進行了積極的討論。例如，就在本週，一些航空航太原始設備製造商還在討論建造率目標調整和供應鏈內持續的交付挑戰，或與工人罷工相關的車輛製造中斷的影響。

What we can affirm is that these issues are not affecting our general demand levels. We remain oversubscribed in terms of demand with customers generally wanting more than we can produce. We have a substantial backlog of orders with material wanted sooner.

我們可以肯定的是，這些問題不會影響我們的整體需求水準。就需求而言，我們仍然超額認購，客戶的需求通常超出了我們的生產能力。我們積壓了大量訂單，需要盡快提供材料。

Even as we work to increase output, we also see unexpected emergency demand from areas like medical and defense associated with current world events or from aerospace associated with spares need. What you are hearing from the marketplace is an affirmation of the strong demand in the near term and the long term.

即使在我們努力增加產量的同時，我們也看到與當前世界事件相關的醫療和國防等領域或與備件需求相關的航空航太領域的意外緊急需求。您從市場上聽到的消息是對近期和長期強勁需求的肯定。

Beyond the near term, our customers also continue to partner with us on their strategic growth efforts, medical innovations, next-generation defense platforms and electrification are examples of areas where customers are partnering with us to develop their next-generation products. In this demand environment, we are well positioned to continue to drive top line growth while expanding our margins through productivity improvements, product mix optimization and higher prices.

在短期內，我們的客戶也將繼續在策略成長方面與我們合作，醫療創新、下一代國防平台和電氣化是客戶與我們合作開發下一代產品的領域的例子。在這種需求環境下，我們處於有利地位，可以繼續推動營收成長，同時透過提高生產力、優化產品組合和提高價格來擴大利潤。

Now let's review first quarter sales performance. In the first quarter of fiscal year 2024 sales decreased sequentially and increased significantly year-over-year. The year-over-year performance reflects our significant productivity gains. As anticipated, volumes decreased sequentially due to fewer operating days, planned preventive maintenance activity and most importantly, targeted mix management.

現在讓我們回顧一下第一季的銷售業績。 2024財年第一季銷售額較上季下降，較去年同期大幅成長。同比表現反映了我們生產力的顯著提升。正如預期的那樣，由於營運天數減少、有計劃的預防性維護活動以及最重要的是有針對性的混合管理，銷售量連續下降。

Importantly, profitability improved in the quarter resulting in a sequential increase in our operating income on lower sales. Notably, SAO's adjusted operating margin was 19.4% in the quarter, up from 16.8% in the fourth quarter of fiscal year 2023.

重要的是，本季獲利能力有所改善，導致我們的營業收入在銷售額下降的情況下連續增加。值得注意的是，SAO 本季調整後營業利潤率為 19.4%，高於 2023 財年第四季的 16.8%。

The profit margin expanded through a combination of productivity efforts, price increases and strategic mix management. This means we are actively allocating capacity to the areas where we add the most value. We serve critical applications across all of our end-use markets and apply ongoing strategic mix management in how we serve them to capitalize on the higher margin products.

透過生產力提升、價格上漲和策略組合管理的結合，利潤率得到了擴大。這意味著我們正在積極地將產能分配到最能增加價值的領域。我們為所有最終用途市場的關鍵應用提供服務，並在我們為它們提供服務的方式中應用持續的策略組合管理，以利用利潤率更高的產品。

Our profitability has been increasing over the previous quarters and will continue to improve with higher pricing, product mix optimization and continued productivity improvements. Now, I will turn it over to Tim for the financial summary.

我們的獲利能力比前幾季一直在成長，並將隨著定價的提高、產品組合的優化和生產力的持續提高而繼續提高。現在，我將把財務摘要交給提姆。

Thanks, Tony. Good morning, everyone. I'll start on Slide 9, the income statement summary. Net sales in the first quarter were $651.9 million with sales excluding surcharge totaling $492.8 million. Sales, excluding surcharge, increased 31% from the same period a year ago on 12% higher volume. Sequentially, sales were down 12% on 18% lower volume.

謝謝，托尼。大家，早安。我將從投影片 9 開始，即損益表摘要。第一季淨銷售額為 6.519 億美元，不含附加費的銷售額總計 4.928 億美元。銷售額（不含附加費）較去年同期成長 31%，銷量成長 12%。隨後，銷售額下降了 12%，銷量下降了 18%。

The year-over-year increase was driven by significant productivity gains to meet growing demand. As Tony mentioned earlier, the lower sales and volumes sequentially were primarily the result of fewer operating days and planned preventative maintenance activities necessary to ensure our equipment continues to perform at high levels. Gross profit was $124.1 million in the current quarter compared to $54.8 million in the same quarter of last year and $119 million in the fourth quarter of fiscal year 2023.

同比增長是由於生產力大幅提高以滿足不斷增長的需求而推動的。正如托尼之前提到的，銷售額和銷售的下降主要是由於營運天數減少以及為確保我們的設備繼續保持高水準運作而規劃的預防性維護活動的結果。本季毛利為 1.241 億美元，去年同期毛利為 5,480 萬美元，2023 財年第四季毛利為 1.19 億美元。

Gross profit in the current quarter is up 126% compared to the same quarter last year and up 4% sequentially. SG&A expenses were $55.1 million in the first quarter up about $9 million from the same period a year ago and roughly $1 million lower sequentially.

本季毛利較去年同期成長 126%，較上季成長 4%。第一季的 SG&A 費用為 5,510 萬美元，比去年同期增加約 900 萬美元，比上一季減少約 100 萬美元。

The increase in SG&A expenses versus the same quarter last year is primarily driven by headcount and higher variable compensation accruals. The SG&A line includes corporate costs, which totaled $20.9 million in the recent first quarter. As we look ahead to the upcoming second quarter of fiscal year 2024 we expect corporate costs to be similar to the first quarter at about $21 million.

與去年同期相比，SG&A 費用的增加主要是由於員工人數和應計可變薪酬的增加所致。 SG&A 專案包括公司成本，最近第一季總計 2,090 萬美元。展望即將到來的 2024 財年第二季度，我們預計企業成本將與第一季相似，約 2,100 萬美元。

Operating income was $69 million in the current quarter compared to $8.3 million in the same quarter a year ago and $62.9 million in our recent fourth quarter of fiscal year 2023. The sequential improvement in operating income up 10% was driven by our productivity efforts actions we took to manage product mix as well as the benefits realized from higher base prices. As a result of these actions, we continue to see profit margin improve with total company adjusted operating margin reaching 14%, up from 11.2% in the previous quarter.

本季的營業收入為 6,900 萬美元，而去年同期為 830 萬美元，2023 財年第四季為 6,290 萬美元。營業收入環比成長 10%，是由我們的生產力努力行動推動的。採取措施管理產品組合以及從更高的基本價格中實現的收益。由於這些行動，我們繼續看到利潤率有所改善，公司調整後營業利潤率達到 14%，高於上一季的 11.2%。

Moving on to our effective tax rate. For the recent first quarter, our effective tax rate was 16.1%, which is below our expected full year effective tax rate of roughly 22% to 24%. The lower effective tax rate was driven by tax benefits recognized in the current quarter related to certain share-based compensation awards.

接下來討論我們的有效稅率。最近第一季度，我們的有效稅率為 16.1%，低於我們預計的全年有效稅率約 22% 至 24%。有效稅率較低的原因是本季度確認的與某些股權激勵獎勵相關的稅收優惠。

Note that tax benefits were worth approximately $0.07 per share relative to the guidance we provided. As we look ahead to the upcoming second quarter of fiscal year 2024 we expect the effective tax rate to return to a more normalized rate of about 24%. We affect our full year effective tax rate for fiscal year 2024 to be in line with the range we previously communicated of 22% to 24%.

請注意，相對於我們提供的指導，稅收優惠約為每股 0.07 美元。展望即將到來的 2024 財年第二季度，我們預計有效稅率將恢復到 24% 左右的更正常化的水平。我們將 2024 財年的全年有效稅率調整為與我們先前溝通的 22% 至 24% 的範圍一致。

Earnings per share for the current quarter was $0.88 per share. The results demonstrate our continued momentum supported by improving profitability and a strong demand environment.

本季每股收益為 0.88 美元。結果表明，獲利能力的提高和強勁的需求環境為我們提供了持續的動力。

Now turning to Slide 10 and our SAO segment results. Net sales for the first quarter were $570.1 million or $417.3 million, excluding surcharge. Compared to the same period last year, net sales, excluding surcharge, increased 37% on 12% higher volumes.

現在轉向幻燈片 10 和我們的 SAO 部分結果。第一季淨銷售額為 5.701 億美元或 4.173 億美元（不含附加費）。與去年同期相比，淨銷售額（不含附加費）成長了 37%，銷量成長了 12%。

Sequentially, net sales excluding surcharge decreased 13% on 19% lower volumes. The year-over-year improvement in net sales was driven by higher shipment volumes due to productivity gains, the impacts of higher prices and an improving product mix across our key end-use markets, as Tony reviewed on the market slide. Sequentially, lower volumes as anticipated, were impacted by the planned preventative maintenance, fewer operating days and the deliberate actions to improve product mix.

隨後，不計附加費的淨銷售額下降了 13%，銷量下降了 19%。正如托尼在市場下滑中所評論的那樣，淨銷售額的同比增長是由於生產力提高、價格上漲的影響以及我們主要最終用途市場的產品組合不斷改善而導致的出貨量增加所推動的。隨後，計劃中的預防性維護、更少的營運天數以及改進產品組合的刻意行動影響了預期產量的下降。

Moving to operating results. SAO reported operating income of $80.8 million in our recent first quarter, which outpaced our expectations. On a year-over-year basis, SAO operating income improvement of $61 million is largely due to higher sales driven by strong demand, higher prices and increased production levels.

轉向經營業績。 SAO 報告最近第一季的營業收入為 8,080 萬美元，超出了我們的預期。與去年同期相比，SAO 營業收入增加了 6,100 萬美元，這主要是由於強勁的需求、更高的價格和更高的生產水準推動了銷售額的增加。

On a sequential basis, operating income improved by about $1 million. Again, our operating income results improved despite the lower volumes. This improvement was largely the result of the positive impact of targeted mix improvements, higher prices and realized production efficiencies. The improvements in productivity, product mix and pricing are evident in the adjusted operating margin, which has increased to 19.4% in the current period as compared with 6.5% in the same period a year ago and 16.8% sequentially.

營業收入季增約 100 萬美元。儘管銷量下降，但我們的營業收入結果再次有所改善。這種改善很大程度上是有針對性的組合改進、更高的價格和實現的生產效率的正面影響的結果。生產力、產品組合和定價方面的改善在調整後的營業利潤率中體現得淋漓盡致，本期營業利潤率已增至 19.4%，而去年同期為 6.5%，上一季為 16.8%。

Looking ahead, the SAO team remains focused on executing actions to further increase production levels and production flow and to actively manage the product mix to maximize the capacity for high-value products. Based on current expectations, we anticipate SAO will generate operating income in the range of $78 million to $82 million in the upcoming second quarter of fiscal year 2024.

展望未來，SAO 團隊仍專注於執行行動，進一步提高生產水準和生產流程，並積極管理產品組合，以最大限度地提高高價值產品的產能。根據目前的預期，我們預計 SAO 在即將到來的 2024 財年第二季將產生 7,800 萬至 8,200 萬美元的營業收入。

Now turning to Slide 11 and our PEP segment results. Net sales in the first quarter of fiscal year 2024 were $101.8 million or $93.1 million, excluding surcharge revenue. Net sales, excluding surcharge, increased 6% from the same quarter last year and decreased 13% sequentially. The year-over-year growth in net sales was driven by strong demand conditions, primarily in our Dynamet titanium business. More specifically, in our Dynamet titanium business, the growth in net sales from the same quarter a year ago was driven by materials used in medical applications.

現在轉向幻燈片 11 和我們的 PEP 部分結果。 2024 財年第一季的淨銷售額為 1.018 億美元，即 9,310 萬美元，不包括附加費收入。淨銷售額（不含附加費）較去年同期成長 6%，較上一季下降 13%。淨銷售額的年成長是由強勁的需求狀況推動的，主要是我們的 Dynamet 鈦業務。更具體地說，在我們的 Dynamet 鈦業務中，淨銷售額較去年同期成長是由醫療應用材料推動的。

In the current quarter, PEP reported operating income of $9.1 million. This compares to operating income of $6.3 million in the same quarter a year ago and operating income of $5.9 million in the fourth quarter of fiscal year 2023. The increase in operating income in the current quarter is primarily the result of improving profitability in our Dynamet business. Similar to SAO, Dynamic continues to focus on improving productivity to meet strong demand in the aerospace and defense and medical end-use markets for our titanium product.

本季度，PEP 報告營業收入為 910 萬美元。相較之下，去年同期的營業收入為 630 萬美元，2023 財年第四季的營業收入為 590 萬美元。本季營業收入的成長主要是由於我們 Dynamet 業務獲利能力的提高。與 SAO 類似，Dynamic 繼續專注於提高生產力，以滿足航空航太、國防和醫療最終用途市場對我們的鈦產品的強勁需求。

We currently anticipate that the PEP segment will deliver operating income in the range of $9.5 million to $10.5 million for the upcoming second quarter of fiscal year 2024.

我們目前預計 PEP 部門在即將到來的 2024 財年第二季將實現 950 萬至 1,050 萬美元的營業收入。

Now turning to Slide 12 and a review of adjusted free cash flow. In the current quarter, we generated $7.4 million of cash from operating activities compared to $174.9 million in our recent fourth quarter and cash used for operating activities of $78 million in the same quarter last year. On a year-over-year basis, the cash from operations was significantly influenced by higher profitability and less pronounced inventory build as we continue to improve productivity and product flow across our operations.

現在轉向投影片 12，回顧調整後的自由現金流。本季度，我們從經營活動中產生了 740 萬美元的現金，而最近第四季度的現金為 1.749 億美元，去年同期用於經營活動的現金為 7800 萬美元。與去年同期相比，隨著我們不斷提高整個業務的生產力和產品流程，較高的獲利能力和不太明顯的庫存增加對營運現金產生了顯著影響。

In the first quarter of last year, we built $121 million of inventory as compared with $68 million of inventory built in the current first quarter. In the first quarter of fiscal year 2024, we spent $22 million on capital expenditures. We continue to expect to spend a total of about $125 million in capital expenditures for fiscal year 2024. With those details in mind, we reported negative adjusted free cash flow of $15 million in the first quarter of fiscal year 2024. Our liquidity remains healthy, and we ended the current quarter with total liquidity of $366 million, including $18 million of cash and $348 million of available borrowings under our credit facility. With that, I'll turn the call back to Tony.

去年第一季度，我們建立了 1.21 億美元的庫存，而目前第一季的庫存為 6,800 萬美元。 2024 財年第一季，我們的資本支出為 2,200 萬美元。我們仍預期 2024 財年的資本支出總額約為 1.25 億美元。考慮到這些細節，我們報告 2024 財年第一季的負調整自由現金流為 1500 萬美元。我們的流動性保持健康，截至本季度末，我們的流動資金總額為3.66 億美元，其中包括1800 萬美元現金和我們信貸安排下的3.48 億美元可用借款。說完，我會把電話轉回給東尼。

Thanks, Tim. Now let's review the key takeaways from today's call. We realized 10% sequential growth in operating income in the first quarter of fiscal year 2024. This was a meaningful improvement compared to the historical trend of a sequential decline in profits in the first quarter of a fiscal year, and we outperformed our previous guidance.

謝謝，蒂姆。現在讓我們回顧一下今天電話會議的主要內容。我們在 2024 財年第一季實現了營業收入環比增長 10%。與財年第一季利潤環比下降的歷史趨勢相比，這是一個有意義的進步，而且我們的表現超出了之前的指導。

The strong quarterly performance is indicative of the demand environment and our ongoing operating momentum. The SAO segment exceeded expectations with operating income of $80.8 million and adjusted operating margin of 19.4% in the first quarter. SAO continues to build momentum with increased productivity, higher prices and improved product mix.

強勁的季度業績顯示了需求環境和我們持續的營運動能。 SAO 部門第一季營業收入為 8,080 萬美元，調整後營業利潤率為 19.4%，超出預期。 SAO 繼續透過提高生產力、提高價格和改進產品組合來增強勢頭。

We are operating in a strong demand environment for our material solutions with positive near- and long-term outlook in our end-use markets. This is demonstrated in our record backlogs, long lead times and customer focus on security of supply. Our strong first quarter financial performance, combined with the second quarter guidance, would result in one of the 2 highest first half financial results in the history of the company. Building on that first half momentum, we project second half fiscal year 2024 operating income to be 28% to 35% higher in the first half.

我們在材料解決方案的強勁需求環境中運營，最終用途市場的近期和長期前景樂觀。我們創紀錄的積壓訂單、較長的交貨時間以及客戶對供應安全的關注就證明了這一點。我們強勁的第一季財務業績，加上第二季的指導，將導致公司歷史上兩個最高的上半年財務業績之一。憑藉著上半年的勢頭，我們預計 2024 財年下半年的營業收入將比上半年高出 28% 至 35%。

Let's take a closer look at the second half outlook on the next slide. As evidenced by our recent performance, we've seen meaningful increases in our productivity over the last several quarters, especially in SAO. However, we still have plenty of runway as we have yet to return to our pre-COVID operating rates in some of our key work centers. We continue to invest in training and mentoring programs for our shop floor employees to safely drive productivity gains while maintaining our high-quality standards.

讓我們仔細看看下一張幻燈片的後半部前景。正如我們最近的表現所證明的那樣，過去幾個季度我們的生產力顯著提高，尤其是在 SAO。然而，我們仍然有足夠的跑道，因為我們的一些關鍵工作中心尚未恢復到新冠疫情前的開工率。我們繼續投資於車間員工的培訓和指導計劃，以安全地提高生產力，同時保持我們的高品質標準。

But most importantly, we have certain key work centers which have not been running at their full potential as our mix continues to shift to more difficult to manufacture products. We expect meaningful increases in productivity at these specific units in the second half of this fiscal year.

但最重要的是，隨著我們的產品組合繼續轉向更難製造的產品，我們的某些關鍵工作中心尚未充分發揮其潛力。我們預計本財年下半年這些特定部門的生產力將會顯著提高。

This next level increase in productivity, combined with continued realization of higher pricing and improvement in product mix should drive operating margins even higher in the second half of fiscal year 2024.

生產力的進一步提高，加上定價的持續提高和產品組合的改善，應該會推動 2024 財年下半年的營業利潤率進一步提高。

Now let's take a look at how this fits in with the longer-term earnings growth projections. As I've detailed in previous calls, our goal is to double fiscal year 2019 operating income by fiscal year 2027. These figures imply a 40% compounded annual growth rate on the operating income from fiscal year 2023 through fiscal year 2027, a very strong growth target.

現在讓我們看看這如何與長期獲利成長預測相吻合。正如我在之前的電話會議中詳細介紹的那樣，我們的目標是到2027 財年將2019 財年的營業收入翻一番。這些數字意味著從2023 財年到2027 財年，營業收入的複合年成長率為40%，這是一個非常強勁的目標。成長目標。

I've also noted that this growth was not going to be back-end loaded and that we expected to make significant progress towards our goal in fiscal year 2024. As you can see, with what we expect for the remainder of the fiscal year, we are setting ourselves up to take a meaningful step towards our longer-term goal.

我還指出，這種增長不會是後端負載，我們預計將在 2024 財年實現我們的目標取得重大進展。正如您所看到的，根據我們對本財年剩餘時間的預期，我們正在為實現我們的長期目標邁出有意義的一步。

With estimated fiscal year 2024 operating income in the range of $310 million to $330 million, we expect to realize approximately 50% of the opportunity in fiscal year 2024. This level of performance would be the highest annual profitability in the history of the company. And we are working to accelerate productivity gains and capacity enhancements to push earnings even higher.

預計 2024 財年營業收入將在 3.1 億至 3.3 億美元之間，我們預計在 2024 財年實現約 50% 的機會。這一業績水準將是該公司歷史上最高的年度獲利能力。我們正在努力加快生產力的提高和產能的增強，以進一步推高利潤。

This is an exciting time for Carpenter Technology. The near-term and long-term demand outlook is strong across our end-use markets for our broad portfolio of specialized solutions. We have leading capabilities with a difficult-to-replicate system of assets and we continue to drive improved productivity to unlock additional capacity to capture demand. Looking ahead, we are well positioned to continue to drive growth and achieve our long-term operating income goal.

對於 Carpenter Technology 來說，這是一個令人興奮的時刻。我們廣泛的專業解決方案組合的最終用途市場的近期和長期需求前景強勁。我們擁有領先的能力和難以複製的資產系統，我們將繼續提高生產力，釋放額外的能力來滿足需求。展望未來，我們有能力繼續推動成長並實現我們的長期營業收入目標。

Thank you. And I will now turn the call back to the operator.

謝謝。現在我將把電話轉回給接線生。

(Operator Instructions) The first question comes from Gautam Khanna with TD Cowen.

（操作員說明）第一個問題來自 Gautam Khanna 和 TD Cowen。

This is (inaudible) on for Gautam. I was just wondering if you can provide any detail about order trends in the quarter by aero end market, for instance, fasteners versus engines versus other structures?

這是（聽不清楚）針對高塔姆的。我只是想知道您是否可以提供有關航空終端市場本季度訂單趨勢的任何詳細信息，例如緊固件與發動機與其他結構？

Yes. I'll take that question. Aerospace engine sales were up 43% year-over-year down 8% sequentially. So even though down 8% sequentially due to the items that we noted in our prepared remarks, the quarterly shipments are about 90% of pre-pandemic engine ship rate. So bottom line is that engine sales remain strong and were oversubscribed and the ramp push -- as the ramp pushes demand even higher well beyond pre-pandemic levels. On fasteners, sales up 77% year-over-year and down sequentially about 13%. Same story there as engines. So hopefully, that's helpful.

是的。我來回答這個問題。航空引擎銷量年增 43%，比上一季下降 8%。因此，儘管由於我們在準備好的評論中提到的事項而環比下降了 8%，但季度出貨量仍約為疫情前引擎出貨量的 90%。因此，最重要的是，引擎銷售仍然強勁，並且被超額認購，並且產量增加，因為產量增加將需求推高，遠遠超出了大流行前的水平。緊固件方面，銷售額年增 77%，季減約 13%。與引擎的故事相同。希望這會有所幫助。

Yes. And then is there any incremental weakness to demand in non-aero markets, given the macro?

是的。那麼，考慮到宏觀形勢，非航空市場的需求是否會逐漸疲軟？

Well, certainly, you've heard commentary out there in the market around the general industrial market, and I can comment on that. That is a limited portion of our sales that's used to support that general industrial activity. Those trends are not material meaningful to our bottom line as our focus is really on high value, difficult-to-manufacture products where demand is currently outstripping supply by quite a bit. So as you know, our portfolio consists of premium, high-value products and any type of weakness in those submarkets will not impact our bottom line materially in the short term or the near term.

嗯，當然，您已經聽到了市場上有關一般工業市場的評論，我可以對此發表評論。這是我們用於支援一般工業活動的銷售額的有限部分。這些趨勢對我們的利潤沒有實質意義，因為我們的重點實際上是高價值、難以製造的產品，這些產品目前的需求遠遠超過供應。如您所知，我們的投資組合由優質、高價值產品組成，這些子市場的任何類型的弱點都不會在短期內對我們的利潤產生重大影響。

Okay. And then just 1 more. Can you give any color on which work centers have the most opportunity for productivity gains?

好的。然後還有 1 個。您能否說明哪些工作中心最有機會提高生產力？

Yes, it's a good question. It's a really good question. The biggest driver certainly is on the front end of our process, which is the primary melting areas. There's a lot more productivity and output we can get from those. So that's the major driver. But also on the back end and finishing, if you think outside of SAO and look at Dynamet, for example, their biggest increase in productivity is on the back end and some of the finishing pieces. And in fact, we've got a couple of pieces of equipment that will be installed here in the near term that could see Dynamet profitability, our operating income much like SAO go up as close to 50% higher quarterly in the second half versus the first half.

是的，這是一個好問題。這是一個非常好的問題。最大的驅動因素當然是我們製程的前端，也就是主要熔化區域。我們可以從中獲得更多的生產力和產出。這是主要的驅動力。而且在後端和精加工方面，如果你考慮 SAO 以外的情況並看看 Dynamet，例如，他們生產力的最大提高是在後端和一些精加工件上。事實上，我們近期將在這裡安裝幾台設備，這些設備可以看到 Dynamet 的盈利能力，我們的營業收入就像 SAO 一樣，下半年季度比上季度增長近 50%上半場。

So there's a lot of areas that we're working on. I think the good news is that we're able to achieve these very high levels of operating income, knowing that our business is still not operating at 100%. So from a shareholder standpoint, there's a lot more that we can do to drive profits even higher.

所以我們正在研究很多領域。我認為好消息是，我們能夠實現如此高水準的營業收入，儘管我們知道我們的業務仍未 100% 營運。因此，從股東的角度來看，我們可以採取更多措施來提高利潤。

The next question comes from Josh Sullivan with The Benchmark Company.

下一個問題來自 Benchmark Company 的 Josh Sullivan。

Tony, Tim, John, congratulations on the quarter here. Just on that base price increase on the noncontract alloys, is there a way to think of percentage or capacity that's available for that transactional business at this point? And then in previous cycles, aerospace was consuming more of your capacity, what did that mix shift look like for the non-aerospace markets? And I'm just curious to hear how those non-aerospace markets are responding in this cycle versus historical cycles?

東尼、提姆、約翰，恭喜本季取得的成績。僅根據非合約合金的基本價格上漲，是否有辦法考慮此時可用於該交易業務的百分比或產能？然後在之前的周期中，航空航太消耗了更多的產能，非航空航太市場的混合轉變是什麼樣的？我只是想知道這些非航空航太市場在這個週期與歷史週期中的反應如何？

Let me see if I can tackle that question for you. Certainly, in this cycle here, aerospace and medical are the ones driving the quickest for us, and that makes up well over 75% of our revenue. Some of the other markets, for example, like energy is single digits for us in terms of percent of revenue. But again, for them to get time on the mill, we're seeing prices move up significantly in the energy side where they challenge aerospace type prices.

讓我看看是否可以為您解決這個問題。當然，在這個週期中，航空航太和醫療是對我們影響最快的領域，占我們收入的 75% 以上。例如，其他一些市場（例如能源）對我們來說僅佔收入百分比。但同樣，為了讓他們有時間在工廠工作，我們看到能源方面的價格大幅上漲，這對航空航太類型的價格構成了挑戰。

And that's what it takes for us to be really interested in those types of products. So obviously, our main focus is on the aerospace and medical, Josh, and I would say, if you compare it as you have to prior cycles, the amplitude of this ramp is significantly greater than in prior cycles.

這就是我們對這些類型的產品真正感興趣的原因。顯然，我們的主要關注點是航空航天和醫療領域，喬什，我想說，如果你將其與之前的周期進行比較，那麼這個斜坡的幅度明顯大於之前的周期。

Got it. And then, Tony, you spent some time there just talking about the fiscal '27 targets and the front-end loaded nature of how the guidance is put together. But as far as the back end of those targets, is there any reason we would think to plateau there? Or is it just conservatism on your nature?

知道了。然後，托尼，您花了一些時間談論 27 財年目標以及指導意見的前端加載性質。但就這些目標的後端而言，我們是否有任何理由認為會停滯不前？或者這只是你本性的保守主義？

Well, we've heard that as I was -- I thought I'd get a question on this, Josh. And if you let me kind of go on for a little bit to kind of put all that in context and then come back to your question. I spent some time last night and I was thinking about what we've really said over the last couple of quarters.

好吧，我們已經聽說了——我想我會得到一個關於這個問題的問題，喬希。如果你讓我繼續講一點，把所有這些都放在上下文中，然後回到你的問題。昨晚我花了一些時間思考我們在過去幾季中真正說過的話。

And as you well know, you were there, this all started in May of 2023 when we had our Investor Day, right, where we said we were going to double operating income FY '19 versus FY '27, which is one of our most profitable years, by the way, 40% CAGR from 23% to 27%. As you mentioned, we said it wasn't going to be back-end loaded. It was going to have a meaningful cash generation and we didn't need to make any large-scale capital expenditures for capacity or M&A to get there.

如您所知，您當時就在那裡，這一切都始於2023 年5 月，當時我們有投資者日，對吧，我們說我們將把19 財年的營業收入比27 財年翻一番，這是我們最重要的收入之一順便說一下，獲利年份的複合年增長率為 40%，從 23% 增加到 27%。正如您所提到的，我們說過它不會被後端加載。它將產生有意義的現金流，我們不需要為產能或併購進行任何大規模資本支出即可實現這一目標。

We come out with the fourth quarter, and we actually exceed our target of getting to FY '19 run rate profitability. So that's a big check mark. During that fourth quarter, so about 3 months ago, we said that this first quarter was going to be slightly down to flat, and was going to bust through the normal seasonality where you see the first quarter being sequentially down. And as you all know, we had a lot of people dialed us and say that you couldn't do that. Well, we actually exceeded that number.

我們公佈了第四季度的業績，實際上我們超越了 19 財年運行率獲利能力的目標。所以這是一個很大的複選標記。在第四季度，大約三個月前，我們說第一季將略有下降至持平，並將突破正常的季節性，即第一季連續下降。眾所周知，很多人打電話給我們說你不能這樣做。嗯，我們實際上超出了這個數字。

And now we come in and say that the second quarter is going to be another impressive quarter, just like Q1, even though we'll continue to do our planned maintenance, even though it has got 2 major holidays in there, we're still going to operate at that level. And then what you're getting to the new piece of information that we came out with today, we said that even after those 2 quarters put those together, and we're going to do another 28% to 35% on top of that. It's very impressive growth. And that's why we took the time, Josh, to talk to you about that some of these work centers are still not running at the rates that we know they can run at. That's how we have line of sight to that second half.

現在我們進來並說第二季度將是另一個令人印象深刻的季度，就像第一季一樣，儘管我們將繼續進行計劃的維護，儘管其中有兩個重大假期，但我們仍然將在該水平上進行操作。然後你會得到我們今天發布的新信息，我們說即使在這兩個季度將這些放在一起之後，我們還將在此基礎上再做 28% 到 35%。這是非常令人印象深刻的成長。喬什，這就是為什麼我們花時間與您討論其中一些工作中心仍然沒有按照我們知道的速度運行的原因。這就是我們對下半場的看法。

Again, we said it wasn't going to be back-end loaded, but we never said that we were going to get 50% in year 1 of 4. And I think your question is that's an awfully strong comment. We've heard now, does that mean that years 2, 3 and 4 could be even more? And is there some conservatism put in there? You might have a point. Maybe there probably is a little conservatism in there, and we have the ability to even push that higher.

我們再次說過，它不會被後端加載，但我們從未說過我們將在 4 年的第一年獲得 50%。我認為你的問題是，這是一個非常強烈的評論。我們現在聽說，這是否意味著第 2 年、第 3 年和第 4 年可能會更長？其中是否存在一些保守主義？你可能有道理。也許其中可能存在一點保守主義，而我們甚至有能力將其推得更高。

Right. Great. And just 1 on the productivity side of that. Do you think Carpenter is doing anything different on the labor side in those work centers? Or do you think it's just the natural factor of time and experience that they're getting better?

正確的。偉大的。在生產力方面只有 1。您認為卡本特在這些工作中心的勞工方面做了什麼不同的事情嗎？還是你認為他們進步只是時間和經驗的自然因素？

I don't know if we're doing anything differently. I mean we have to be very, I'll use the word cautious, right, because we are producing products that can never fail, a very high quality standards. So we just don't take chances. If an operator is not ready, they're not ready. And we don't push them to put them in a situation where we could sacrifice the quality of our product. That's just unacceptable.

我不知道我們的做法是否有所不同。我的意思是我們必須非常，我會用謹慎這個詞，對吧，因為我們正在生產永遠不會失敗的產品，具有非常高的品質標準。所以我們只是不冒險。如果操作員還沒準備好，那麼他們就還沒準備好。我們不會強迫他們將他們置於我們可以犧牲產品品質的境地。這是不可接受的。

I'll give you a couple of numbers that are interesting. If you think about a new employee that's been with us 2 years or less. And if you look at our SAO operation, our plants range anywhere from 30% to 60% of our shop floor workers have been there 2 years or less.

我會給你一些有趣的數字。如果您考慮一位在我們工作了 2 年或更短時間的新員工。如果你看看我們的 SAO 運作情況，你會發現我們的工廠有 30% 到 60% 的車間工人在那裡工作了 2 年或更短時間。

In our Dynamet facility, we have 1 facility that 50% are new in the last 2 years. The other is almost 30%. That is a big influx of new employees, highly qualified, I mean the level of employees that we're attracting is very high. But it's a complex, very sophisticated equipment that we're going to make sure they can operate it, number 1, safely and always within the quality standards that we hold ourselves to and that the industry requires. So you've seen some nice improvement over the last couple of quarters. The good news is there's still more improvement to come. Hopefully, that answers your question.

在我們的 Dynamet 工廠中，我們有 1 個工廠，其中 50% 是過去 2 年內新建的。另一個差不多是30%。這是大量高素質新員工的湧入，我的意思是我們吸引的員工水準非常高。但這是一種複雜、非常精密的設備，我們將確保他們能夠安全地操作它，第一，並始終符合我們堅持的品質標準和行業要求的品質標準。所以你在過去幾個季度中看到了一些不錯的進步。好消息是還有更多的改進即將到來。希望這能回答您的問題。

(Operator Instructions) The next question comes from Chris Olin with Northcoast Research.

（操作員說明）下一個問題來自 Northcoast Research 的 Chris Olin。

Congrats on the quarter, guys. Just wondering on the near term, has there been any type of negative volume impact associated with the drop in the commodity nickel market? Just wondering if some customers will delay orders? Are you seeing any of that because of the surcharge visibility? Or are we at a point where like the long-term behavior has kind of changed when your customers are worried about supply?

夥計們，恭喜這個季度。只是想知道近期商品鎳市場的下跌是否會對成交量產生任何負面影響？只是想知道是否有些顧客會延遲訂單？您是否因為可見度附加費而看到了這些？或者，當您的客戶擔心供應時，我們的長期行為是否已經發生了某種變化？

I think it's the latter, and I think I know we're not having any customers delay orders because of where the nickel price is or where they think it's going to go. I mean, we have all of our customers trying to get into the order book earlier, right? As you know, we've closed the order book a couple of times. So that comment that you just made, just in this type of environment, does not -- is never made. It's never discussed. That's not a factor.

我認為是後者，而且我想我知道我們沒有任何客戶因為鎳價或他們認為鎳價的走向而推遲訂單。我的意思是，我們所有的客戶都試圖儘早進入訂單簿，對吧？如您所知，我們已多次關閉訂單簿。因此，您剛才發表的評論，只是在這種環境下，從來沒有發表過。從來沒有討論過。這不是一個因素。

Okay. I may have missed, I apologize if I had, but I was just thinking about the pricing dynamics and your comments about the increases. I was just wondering if there are contract renewals are not rising yet, I can't recall from the last quarter.

好的。我可能錯過了，如果錯過了，我很抱歉，但我只是在考慮定價動態以及您對漲價的評論。我只是想知道續約合約是否還沒增加，我不記得上個季度的情況了。

Yes, there are. I mean over the last couple of years, obviously, by our results, you can tell that we've had contracts that have renewed, and now you're seeing that higher price come through. And there are a couple more that are in the works as well. So it seems like at any point in time, we have 1 or 2 that we're working through. And there's a couple of significant ones that we're working through as we speak.

是的，有。我的意思是，在過去的幾年裡，顯然，透過我們的結果，你可以看出我們已經續簽了合同，現在你看到了更高的價格。還有更多正在開發中。因此，似乎在任何時間點，我們都會有 1 或 2 個需要解決的問題。在我們發言時，我們正在解決一些重要的問題。

Is it safe to assume something like 20%, 30% renews price each year for the model?

假設該型號每年的更新價格為 20%、30%，是否安全？

Let me make sure I understand your question. Are you saying that 20% or 30% of contracts renew every year?

讓我確保我理解你的問題。你是說每年有 20% 或 30% 的合約續約？

Yes, we'll renew at a higher price, so I could put that in...

是的，我們會以更高的價格續訂，所以我可以把它放進去...

Well, all contracts are renewing at a higher price. That's something that's consistent across the industry. You can take that with a high level of confidence that all contract renewals will be at a much higher price.

好吧，所有合約都以更高的價格續約。這是整個產業一致的。您可以充滿信心地認為，所有合約續約的價格都會高得多。

Okay. Just last, I wanted to shift quickly back to Dynamet. And I guess I'm thinking a bit about the Boeing 787 and the A350 build rate increases, kind of the peak outlook and I can't recall if Dynamet is levered to one platform more than the other? And would you benefit kind of significantly from a doubling of the production targets. And I guess lastly, do you have enough capacity to satisfy that if you do?

好的。最後，我想快速回到 Dynamet。我想我正在考慮波音 787 和 A350 建造率的增加，這是一種巔峰前景，我不記得 Dynamet 是否更多地利用一個平台而不是另一個平台？您是否會從生產目標翻倍中獲得顯著收益？我想最後，如果你這樣做的話，你有足夠的能力來滿足嗎？

Well, to answer your last piece of your question first, no, there's not enough capacity in the system across multiple submarkets. For us, we sell to every one of the fastener companies. So whether it's Boeing or Airbus, it's the type of demand environment when demand is so much higher than supply that's just not a factor. We're oversubscribed, and we anticipate that being like that for several years to come, regardless of the split between widebody and single aisle and Boeing or Airbus.

好吧，先回答你的最後一個問題，不，跨多個子市場的系統沒有足夠的容量。對我們來說，我們向每一家緊固件公司銷售產品。因此，無論是波音還是空中巴士，當需求遠高於供應時，需求環境就不再是一個因素了。我們已經超額認購，並且預計未來幾年都會出現這種情況，無論寬體飛機和單通道飛機以及波音或空中巴士之間的差距如何。

Will a capital investment beyond the horizon for that to address that?

是否會進行超出範圍的資本投資來解決這個問題？

Possibly. I mean, Dynamet just like SAO is working to get up to rates as well. We're not running in Dynamet at the level we need to run at. And on a previous question from Cowen, I said that, in fact, we have a couple of pieces of equipment that are coming in here in the near term into Dynamet that will increase our finishing capacity. So that will help as well.

可能吧。我的意思是，Dynamet 就像 SAO 一樣也在努力達到標準。我們在 Dynamet 中運行的水平沒有達到我們需要的水平。關於 Cowen 之前提出的問題，我說過，事實上，我們有幾台設備將在短期內進入 Dynamet，這將提高我們的精加工能力。所以這也會有所幫助。

The next question comes from Michael Leshock with KeyBanc Capital Markets.

下一個問題來自 KeyBanc Capital Markets 的 Michael Leshock。

I just wanted to ask here on volumes. We saw a decline in the quarter given the less shipping days. But looking forward, how do you see volumes increasing relative to price and mix. so if your long-term guidance incorporates the 15% to 20% increase in volumes above fiscal '19, do you expect that volume uptick to be largely in fiscal '24? Or is the big step-up this year, more so a function of price in the volume piece is more linear over the course of your long-term guidance?

我只是想在這裡問一下卷。由於運輸天數減少，我們看到本季有所下降。但展望未來，您如何看待銷售量相對於價格和產品組合的成長。因此，如果您的長期指導包括在 19 財年的基礎上增加 15% 至 20% 的銷量，您是否預計銷量的增長將主要在 24 財年實現？或者今年的大幅上漲，更重要的是，在您的長期指導過程中，銷售部分的價格函數更加線性？

Well, the volume is going to follow our productivity for the most part. I mean, as you've seen now in this quarter and into next, a big part of our strategic mix management is moving that volume around, because some of the products as we move to different types of products, they take longer to process through the system, right, especially like in a primary (inaudible) product, it could be noted 3 times. That just takes longer to go through the system, much higher margins on that, but it takes longer. But as you see our productivity continue to increase, as we've talked about as some of these other pieces come online, certainly, volume will be higher in the second half than the first half.

嗯，銷量在很大程度上將取決於我們的生產力。我的意思是，正如您在本季度和下季度所看到的那樣，我們策略組合管理的很大一部分是轉移數量，因為當我們轉向不同類型的產品時，某些產品需要更長的時間來處理系統，對吧，特別是像在初級（聽不清楚）產品中一樣，它可以被注意到 3 次。只是需要更長的時間來通過該系統，從而獲得更高的利潤，但需要更長的時間。但正如你所看到的，我們的生產力不斷提高，正如我們所討論的，隨著其他一些產品上線，下半年的銷量肯定會比上半年更高。

And then on maintenance, were you able to get all your normal seasonal maintenance spending done just given the lower CapEx spend sequentially and maybe running your assets above normal seasonal utilization levels? Or do you see any spilling into the second quarter?

然後在維護方面，考慮到資本支出連續下降，並可能使您的資產運作在正常的季節性利用率水準之上，您是否能夠完成所有正常的季節性維護支出？或者您認為第二季會有任何溢出效應嗎？

Well, we're going to -- we're in perpetual preventive maintenance, the days of shutting your plant down for 3 weeks and turning everything off and sending everyone home and doing all your preventive maintenance are over, right? That just doesn't -- that's not the most efficient way. We are always in a cycle of preventive maintenance.

好吧，我們要——我們正在進行永久性的預防性維護，關閉工廠三週、關閉所有設備、讓每個人回家並進行所有預防性維護的日子已經結束，對嗎？但這並不是最有效的方法。我們始終處於預防性維護的循環中。

And I think I've been asked why do I talk about this? And when you're in a situation where supply can meet demand, certainly, no one really talks about preventive maintenance. But when you're in a sold-out environment where any amount of downtime, any amount of downtime will translate to customer impact and the amount of product you could ship. Well, then that's why it makes it important. That's why it's important to say at any point in time, we're going to be doing that.

我想有人問我為什麼要談這個？當供應能夠滿足需求時，當然沒有人真正談論預防性維護。但是，當您處於售罄環境中時，任何停機時間都會轉化為對客戶的影響以及您可以運送的產品數量。好吧，這就是為什麼它如此重要。這就是為什麼在任何時候都必須說我們將這樣做的原因。

Secondly, I would say it's really important to remember, Mike, we have really exclusive, highly sought-after assets, and it's our job as skilled operators to protect that equipment, obviously, over the long term. So we're aiming for a 40% CAGR -- annual CAGR over the next 4 years. That's our goal. Our goal is not to run the equipment to failure simply to earn a couple more million dollars on top of already a record quarter, right?

其次，我想說，記住這一點非常重要，麥克，我們擁有真正獨特的、備受追捧的資產，而且作為熟練的操作員，我們的工作顯然是長期保護這些設備。因此，我們的目標是未來 4 年的複合年增長率為 40%。這就是我們的目標。我們的目標不是僅僅為了在已經創紀錄的季度基礎上再賺幾百萬美元而讓設備運行到故障，對嗎？

So I mean, that would be in professional. So it's not about trying to -- let's run it more and try to get another couple of million. We're in for the long haul where we're going to double operating income versus FY '19 over 4 years. So we got to protect our equipment and treat it the right way.

所以我的意思是，這將是專業的。所以這不是要嘗試——讓我們更多地運行它並嘗試再獲得幾百萬美元。從長遠來看，我們將在 4 年內將營業收入比 19 財年翻倍。因此，我們必須保護我們的設備並以正確的方式對待它。

This concludes our question-and-answer session. I would like to turn the conference back over to John Huyette for any closing remarks.

我們的問答環節到此結束。我想將會議轉回約翰·休耶特（John Huyette）發表閉幕詞。

Thank you, operator, and thank you, everyone, for joining us today for our fiscal year 2024 first quarter conference call. Have a great rest of your day.

謝謝運營商，也謝謝大家今天參加我們的 2024 財年第一季電話會議。祝您有個愉快的一天。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。