Commercial Vehicle Group Inc (CVGI) 2024 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the CVG Q2 2024 earnings conference call.

早安，女士們、先生們，歡迎參加 CVG 2024 年第二季財報電話會議。

(Operator Instructions)

（操作員說明）

I would now like to turn the conference over to Andy Cheung, CFO.

我現在想把會議交給財務長 Andy Cheung。

Please go ahead.

請繼續。

Thank you, operator, and welcome everyone to our conference call.

謝謝您，接線生，歡迎大家參加我們的電話會議。

Joining me on the call today is James Ray, President and CEO of CVG.

今天加入我電話會議的是 CVG 總裁兼執行長 James Ray。

This morning, we will provide a brief company update as well as commentary regarding our second quarter 2024 results, after which we will open the call for questions.

今天早上，我們將提供簡短的公司最新動態以及有關 2024 年第二季業績的評論，之後我們將開始提問。

As a reminder, this conference call is being webcast and the Q2 2024 earnings call presentation, which we will refer to during this call, is available on our website.

謹此提醒，本次電話會議正在網路直播，我們將在本次電話會議期間提及的 2024 年第二季財報電話會議簡報可在我們的網站上取得。

Both may contain forward-looking statements, including, but not limited to, expectations for future periods regarding market trends, cost-saving initiatives, and new product initiatives, among others.

兩者都可能包含前瞻性陳述，包括但不限於對未來時期有關市場趨勢、成本節約計劃和新產品計劃等的預期。

Actual results may differ from anticipated results because of certain risks and uncertainties.

由於某些風險和不確定性，實際結果可能與預期結果不同。

These risks and uncertainties may include, but are not limited to, economic conditions in the market in which CVG operates, fluctuations in the production volumes of vehicles for which CVG is a supplier, financial covenants compliance and liquidity, risks associated with conducting business in foreign countries and currencies, and other risks as detailed in our SEC filings.

這些風險和不確定性可能包括但不限於 CVG 營運所在市場的經濟狀況、CVG 作為供應商的車輛產量的波動、財務契約合規性和流動性、與在國外開展業務相關的風險國家和貨幣，以及我們向SEC 文件中詳細說明的其他風險。

I will now turn the call over to James to provide a company update.

我現在將把電話轉給詹姆斯，以提供公司的最新情況。

Thank you, Andy.

謝謝你，安迪。

I'd like to turn your attention to the supplemental earnings presentation, starting on slide three.

我想請您注意從第三張投影片開始的補充收益簡報。

Our second quarter results fell short of expectations with year over year declines in revenue and profitability as multiple factors, both internal and external, impacted our performance.

由於內部和外部的多種因素影響了我們的業績，我們第二季的業績未達到預期，收入和獲利能力較去年同期下降。

Specific to our electrical systems segment, construction and agriculture markets, a key driver of growth for that segment, have continued to soften.

具體到我們的電力系統領域，建築和農業市場（該領域成長的關鍵驅動力）持續疲軟。

This is a continuation of the market weakness we experienced in the first quarter of this year as higher interest rates and lower agricultural commodity prices continue to weigh on the majority of our key customers in this segment.

這是我們今年第一季經歷的市場疲軟的延續，因為利率上升和農產品價格下降繼續對該領域的大多數主要客戶造成壓力。

Business margins continue to have FX headwinds and unrecovered economics from several major customers.

業務利潤率持續受到匯率不利因素的影響，而且幾個主要客戶的經濟狀況尚未恢復。

Additionally, we have experienced operational inefficiencies within our vehicle solutions segment as we have incurred disruptions during the execution of a significant product launch with a large customer across multiple sites, coupled with activities to optimize our cab structures facility in Kings Mountain, North Carolina, as we progress through the sale process.

此外，我們的車輛解決方案部門也遇到了營運效率低下的問題，因為我們在與多個地點的大客戶一起執行重大產品發布期間發生了中斷，再加上優化我們位於北卡羅來納州國王山的駕駛室結構設施的活動，我們在銷售過程中取得進展。

I'll dive deeper into the actions we're taking to strengthen our vehicle solutions segment shortly.

我很快就會深入探討我們為加強我們的車輛解決方案領域所採取的行動。

Despite challenges we experienced in the second quarter, we took multiple corrective actions to stabilize the losses and position CVG for future success, and advanced several key strategic initiatives.

儘管我們在第二季度遇到了挑戰，但我們採取了多項糾正措施來穩定虧損，為 CVG 未來的成功做好準備，並推進了幾項關鍵戰略舉措。

First, we executed an agreement for the profitable sale of our cab structures business in Kings Mountain, North Carolina.

首先，我們簽署了一項協議，以盈利方式出售位於北卡羅來納州金斯山的駕駛室結構業務。

This transaction will serve to streamline and focus our product portfolio.

這項交易將有助於簡化和集中我們的產品組合。

I will cover this in more detail in a moment.

我稍後將更詳細地介紹這一點。

We also made progress on our ongoing cost reduction and business optimization efforts.

我們在持續降低成本和業務優化方面也取得了進展。

Year to date, we have deployed almost $7 million in restructuring expenses to optimize our cost structure and we are reducing our headcount by more than 10%.

今年迄今為止，我們已經部署了近 700 萬美元的重組費用來優化我們的成本結構，並且我們的員工人數減少了 10% 以上。

We also continue to drive good business wins in the quarter with approximately $32 million in awards.

我們還在本季繼續推動良好的業務勝利，獲得了約 3,200 萬美元的獎勵。

This brings our year-to-date total to approximately $80 million across all segments.

這使得我們今年迄今所有細分市場的總收入達到約 8,000 萬美元。

We are updating our 2024 guidance, which we will cover later in the presentation.

我們正在更新 2024 年指南，我們將在稍後的演示中介紹。

Turning to slide four, I will highlight the recently announced agreement to sell our cab structures business in Kings Mountain, North Carolina.

轉向第四張投影片，我將重點介紹最近宣布的出售北卡羅來納州國王山駕駛室結構業務的協議。

The sale of cab structures is strategic in nature, and marks another milestone in our mission to evolve our business towards the higher-growth products and markets, in line with our ongoing strategic transformation plan, while simultaneously generating shareholder value.

駕駛室結構的銷售本質上是策略性的，標誌著我們使命的另一個里程碑，即根據我們正在進行的策略轉型計劃，將我們的業務發展到更高成長的產品和市場，同時創造股東價值。

Of note, the sale price of $40 million will help further our debt paydown.

值得注意的是，4000 萬美元的售價將有助於進一步償還我們的債務。

In line with our long-term strategy, the sale of cab structures reduces our exposure to the cyclical Class 8 market, lowers our customer concentration, removes complexity from our business, and improves our overall return profile.

根據我們的長期策略，駕駛室結構的銷售減少了我們對週期性 8 級市場的暴露，降低了我們的客戶集中度，消除了我們業務的複雜性，並改善了我們的整體回報狀況。

We will continue to take the best actions to position CVG for future success.

我們將繼續採取最佳行動，為 CVG 未來的成功做好準備。

Now moving to slide five.

現在轉到第五張投影片。

I'd like to highlight our key focus areas for 2024.

我想強調一下我們 2024 年的重點關注領域。

As I mentioned previously, we are highly focused on proactively continuing to lower our cost structure and improving our operational execution as we navigate a lower demand environment.

正如我之前提到的，在需求較低的環境中，我們高度專注於主動持續降低成本結構並提高營運執行力。

Our priorities for the remainder of this year are to enhance our electrical systems' operational efficiency and cost profile, complete the strategic evaluation of our industrial automation segment, and strengthen our vehicle solutions segment closing on the sale of our cab structures business, and by stabilizing and improving operational execution.

今年剩餘時間裡，我們的首要任務是提高電氣系統的運營效率和成本狀況，完成工業自動化部門的戰略評估，並在出售駕駛室結構業務後加強我們的車輛解決方案部門，並通過穩定並提高運營執行力。

As it relates to electrical systems, we are actively executing a restructuring program as our key end markets, particularly construction and agriculture, continue to soften.

由於與電力系統相關，我們正在積極執行重組計劃，因為我們的主要終端市場，特別是建築和農業，持續疲軟。

We have also experienced delayed and slower customer ramp volumes of new business originally scheduled for production launch in 2024.

我們還經歷了原定於 2024 年投產的新業務的延遲和緩慢的客戶成長。

This includes actions such as further reducing headcount and optimizing plant capacity utilization to stabilize margins and rightsize our plant production to match current demand conditions.

這包括進一步減少員工人數和優化工廠產能利用率等行動，以穩定利潤並調整工廠生產規模以適應當前的需求狀況。

Our two new low-cost manufacturing sites, in Aldama, Mexico and Tangier, Morocco, provide options to lower our cost in electrical systems.

我們在墨西哥阿爾達馬和摩洛哥丹吉爾的兩個新的低成本製造基地為降低電氣系統成本提供了選擇。

Also, I would like to highlight our efforts within our aftermarket segment.

另外，我想強調我們在售後市場領域所做的努力。

While we have been facing lower customer demand in recent quarters, we are working to refine our production processes to improve our seat delivery performance and reduce lead times to customers.

雖然最近幾季我們面臨客戶需求下降的問題，但我們正在努力改進生產流程，以提高我們的座椅交付性能並縮短向客戶交付的交貨時間。

These efforts should help CVG's wallet share with customers, as our aftermarket segment remains a key focus area for the company.

這些努力應該有助於 CVG 與客戶分享錢包，因為我們的售後市場領域仍然是公司的重點領域。

Finally, within vehicle solutions, we are focused on executing a smooth transition of our cab structures business, and making required improvements as we prepare to finalize the transaction.

最後，在車輛解決方案中，我們致力於實現駕駛室結構業務的平穩過渡，並在準備完成交易時進行必要的改進。

We have increased oversight and resources to stabilize the vehicle solutions business, and offset inefficiencies resulting from program launches, supply chain issues, and unexpected volume changes.

我們加強了監督和資源，以穩定車輛解決方案業務，並抵消因專案啟動、供應鏈問題和意外數量變化而導致的低效率。

To help address the issues in our vehicle solutions segment, our team has deployed multiple internal and external support teams to the affected facilities.

為了幫助解決我們的車輛解決方案領域的問題，我們的團隊已向受影響的設施部署了多個內部和外部支援團隊。

While this was a significant expense in the quarter, we expect these actions to provide greater stability for the balance of this year as we appropriately position our cost structure for a market rebound in 2025 and beyond.

雖然這是本季的一筆巨額支出，但我們預計這些行動將為今年的剩餘時間提供更大的穩定性，因為我們將適當定位成本結構，以應對 2025 年及以後的市場反彈。

Now, moving to slide six.

現在，轉到第六張投影片。

I'd like to briefly highlight the Navistar Supplier Excellence Award, which CVG received in June of this year.

我想簡單介紹一下 CVG 今年 6 月獲得的 Navistar 供應商卓越獎。

Annually, Navistar recognizes four of its top-performing suppliers based on quality, delivery, cost, and continuous improvement.

每年，Navistar 都會根據品質、交付、成本和持續改進來表彰四家表現最佳的供應商。

Navistar is a key CVG customer, and we are delighted to receive the award, and will continue to strive to retain this achievement.

Navistar 是 CVG 的主要客戶，我們很高興獲得該獎項，並將繼續努力保持這項成就。

As a focal point of our customer value proposition, our focus remains on delivering operational excellence, and growing together with our business partners and customers.

作為我們客戶價值主張的焦點，我們的重點仍然是提供卓越的運營，並與我們的業務合作夥伴和客戶一起成長。

Our team's passion for cultivating strong customer relationships creates an ongoing dividend that is reflected in our new program wins.

我們的團隊對培養牢固的客戶關係的熱情創造了持續的紅利，這反映在我們新計劃的成功中。

With that, I'd like to turn the call back to Andy for a more detailed review of our financial results.

說到這裡，我想把電話轉回給安迪，讓他更詳細地審查我們的財務表現。

Thank you, James, and good morning everyone.

謝謝你，詹姆斯，大家早安。

If you are following along in the presentation, please turn to slide 7.

如果您正在聽演示，請翻到幻燈片 7。

Consolidated first quarter 2024 revenue was $230 million as compared to $262 million in the prior year period.

2024 年第一季合併收入為 2.3 億美元，去年同期為 2.62 億美元。

The decrease in revenues is due primarily to a softening in customer demand impacting all segments, and the anticipated wind-down of certain program in our vehicle solutions segment.

收入下降的主要原因是影響所有細分市場的客戶需求疲軟，以及我們的車輛解決方案細分市場中某些項目的預期結束。

Adjusted EBITDA was $10 million for the second quarter compared to $20.8 million in the prior year.

第二季調整後 EBITDA 為 1,000 萬美元，而上年同期為 2,080 萬美元。

Adjusted EBITDA margins were 4.3%, down 360 basis points as compared to adjusted EBITDA margins of 7.9% in the second quarter of 2023, driven primarily by lower volumes, inflationary impact, and the operational inefficiencies we experienced in vehicle solutions.

調整後EBITDA 利潤率為4.3%，與2023 年第二季調整後EBITDA 利潤率7.9% 相比下降了360 個基點，這主要是由於銷量下降、通膨影響以及我們在車輛解決方案中遇到的運營效率低下造成的。

Interest expense was $2.5 million as compared to $2.8 million in the second quarter of 2023.

利息支出為 250 萬美元，而 2023 年第二季為 280 萬美元。

The decrease in interest expense was primarily related to lower average debt balances offset by higher interest rates on variable rate debt during the respective periods.

利息支出的減少主要與各期間可變利率債務利率上升所抵銷的平均債務餘額下降有關。

Net loss for the quarter was $1.6 million or $0.05 per diluted share, as compared to net income of $10.1 million or $0.30 per diluted share in the prior year.

本季淨虧損為 160 萬美元，即稀釋後每股 0.05 美元，而前一年淨利為 1,010 萬美元，即稀釋後每股 0.30 美元。

Adjusted net income for the quarter was $2.1 million or $0.06 per diluted share as compared to $10.7 million or $0.32 per diluted share in the prior year.

本季調整後淨利為 210 萬美元，即稀釋後每股收益 0.06 美元，而前一年為 1,070 萬美元，即稀釋後每股收益 0.32 美元。

Moving to the segment results beginning on slide 8.

轉到從投影片 8 開始的分段結果。

Our electrical systems segment achieved revenues of $50.2 million, a decrease of 21.2% as compared to the year ago quarter, with the decrease resulting primarily from lower customer demand and the phase-out of lower-margin business that commenced in the second quarter.

我們的電氣系統部門實現收入 5,020 萬美元，比去年同期下降 21.2%，下降的主要原因是客戶需求下降以及從第二季度開始逐步淘汰利潤率較低的業務。

We maintain our goal of making electrical systems our largest segment, and still hold our view of this segment as our area of focused growth.

我們維持將電氣系統作為我們最大細分市場的目標，並且仍然認為該細分市場是我們重點成長的領域。

Commentary from OEMs in the end market we sell into, primarily construction and agriculture has remained sour as the construction and agriculture markets continue to forecast a steep decline globally for the full year.

我們銷售的終端市場（主要是建築和農業）的原始設備製造商的評論仍然不好，因為建築和農業市場繼續預測全球全年將急劇下滑。

Still, we continue to achieve new business wins, putting the company in a position to capitalize when end-market demand within construction and agriculture markets rebound.

儘管如此，我們仍在繼續取得新的業務勝利，使公司能夠在建築和農業市場的終端市場需求反彈時獲利。

Adjusted operating income was $1.9 million, a decrease of $5.8 million compared to the second quarter of 2023.

調整後營業收入為 190 萬美元，比 2023 年第二季減少 580 萬美元。

Operating income was negatively impacted by lower customer demand, restructuring cost, labor inflation, and unfavorable foreign exchange impacts.

營業收入受到顧客需求下降、重組成本、勞動通膨和不利外匯影響的負面影響。

Turning to slide 9.

轉到投影片 9。

Our vehicle solutions segment's second quarter revenues decreased 8% to $140.9 million compared to the year ago quarter, due primarily to lower customer demand and the wind-down of certain programs within the segment.

我們的車輛解決方案部門第二季度營收與去年同期相比下降了 8%，至 1.409 億美元，這主要是由於客戶需求下降以及該部門某些項目的結束。

In addition, we experienced elevated program launch costs for a significant new product with a major customer that impacted multiple sites.

此外，我們還遇到了影響多個站點的主要客戶的重要新產品的計劃啟動成本升高的情況。

We also saw throughput challenges in our cab structures business, increased freight costs, negative foreign exchange impact, and labor inflation.

我們也看到駕駛室結構業務的吞吐量挑戰、貨運成本增加、外匯負面影響和勞動力通膨。

As a result of these factors, adjusted operating income for the second quarter was $8.3 million, a decrease of $6.2 million compared to the prior year period.

由於這些因素，第二季調整後營業收入為 830 萬美元，比去年同期減少 620 萬美元。

As James mentioned earlier, we have reached an agreement for the sale of our cab structures business.

正如詹姆斯之前提到的，我們已經就出售駕駛室結構業務達成了協議。

Although preparing for the sale, we sought an additional expense in the second quarter.

儘管正在為出售做準備，但我們在第二季度尋求額外費用。

We also expect the consolidation of our Chillicothe facility to be completed in the third quarter of this year.

我們也預計奇利科西工廠的整合將於今年第三季完成。

We continue to view vehicle solutions as a core business, and it remains a focus for our team as we continue to reduce cost, drive further operational improvements, and win new business at higher margins to strengthen our profile.

我們繼續將車輛解決方案視為核心業務，並且它仍然是我們團隊的重點，因為我們不斷降低成本，推動進一步的營運改進，並以更高的利潤贏得新業務，以增強我們的形象。

Moving to slide 10.

轉到投影片 10。

Our aftermarket and accessories segment revenues in the second quarter decreased 8.1% to $33.9 million compared to the year ago quarter, primarily resulting from decreased sales volume on lower customer demand, and the drawdown of backlog in the prior year period.

與去年同期相比，我們的售後市場和配件部門營收第二季下降了 8.1%，至 3,390 萬美元，這主要是由於客戶需求下降導致銷量下降以及去年同期積壓訂單的減少。

Adjustment operating income for the second quarter was $4.7 million, a decrease of $0.8 million compared to the prior year period.

第二季調整後營業收入為470萬美元，比去年同期減少80萬美元。

The decrease is primarily attributable to lower sales volumes, product mix, and higher labor and benefit cost.

下降的主要原因是銷售量、產品組合下降以及勞動力和福利成本上升。

On a sequential basis, results in this segment increased in terms of adjusted operating income for the second quarter in a row as would continue to apply our restructuring efforts in this business.

從環比來看，該部門的業績在調整後營業收入方面連續第二個季度成長，因為我們將繼續在該業務中採取重組措施。

Turning to slide 11, our industrial automation segment produced second quarter revenues of $5 million, a decrease of 45% as compared to $9 million in the second quarter of 2023, due to lower sales volume resulting from reduced customer demand.

轉向投影片 11，我們的工業自動化部門第二季營收為 500 萬美元，比 2023 年第二季的 900 萬美元下降 45%，因為客戶需求減少導致銷售下降。

Adjusted operating income was a loss of $0.9 million, compared to a loss of $1.7 million in the prior year period.

調整後營業收入虧損 90 萬美元，而上年同期虧損 170 萬美元。

We are in the middle of due diligence process of evaluating strategic alternatives with multiple interested parties.

我們正處於與多個利害關係人評估策略替代方案的盡職調查過程中。

As James already mentioned, we see this process culminating in the second-half of 2024.

正如詹姆斯已經提到的，我們預計這一過程將在 2024 年下半年達到頂峰。

We are quickly acting to balance ourselves through restructuring and headcount reduction efforts to improve our profitability in the face of end market and operational challenges.

我們正在迅速採取行動，透過重組和裁員來平衡自身，以提高我們的獲利能力，應對終端市場和營運挑戰。

To date, we have invested $6.8 million in restructuring expenses, and have a 10% lower headcount, coinciding with our progress in the strategic evaluation of our industrial automation segment.

迄今為止，我們已投資 680 萬美元用於重組費用，並減少了 10% 的員工人數，這與我們在工業自動化領域戰略評估方面取得的進展相一致。

Through taking these efforts, we aim to become a more efficient, agile, and profitable company.

透過這些努力，我們的目標是成為一家更有效率、敏捷和有利可圖的公司。

On slide 12, we have highlighted CVG's key end markets as well as commentary related to the Class 8 heavy truck in construction and agriculture sectors, which when combined represent almost two-thirds of our company's revenues.

在投影片 12 中，我們重點介紹了 CVG 的主要終端市場以及與建築和農業領域 8 級重型卡車相關的評論，這兩個領域合計幾乎占我們公司收入的三分之二。

Excluding our cab structures and industrial automation businesses, our end-market exposures are ordered with increased exposure to the construction and agriculture markets and decreased exposure to the Class 8 markets.

不包括我們的駕駛室結構和工業自動化業務，我們的終端市場敞口按順序增加對建築和農業市場的敞口，並減少對 8 類市場的敞口。

Despite the near-term market dynamics, we believe that this exposure focuses on the point of our transformation strategy, which is to strengthen our core vehicle solutions business while focusing on the high-growth electrical system business.

儘管近期市場動態不佳，但我們認為此次曝光重點關注我們轉型策略的重點，即加強我們的核心汽車解決方案業務，同時專注於高成長的電氣系統業務。

Shifting now to our key market outlook, as it relates to ACT's Class 8 Heavy Truck Build forecast, 2024 estimates have remained relatively unchanged, with Class 8 truck orders estimated to be down 9%.

現在轉向我們的關鍵市場前景，因為它與 ACT 的 8 級重型卡車製造預測相關，2024 年的預測相對保持不變，8 級卡車訂單估計下降 9%。

We continue to expect modestly lower second-half production for Class 8 trucks, in line with ACT projections, and expect an acceleration of growth in 2025 and 2026 as the industry is preparing for a substantial 2027 emission regulations.

我們繼續預計 8 級卡車下半年產量將小幅下降，與 ACT 預測一致，並預計 2025 年和 2026 年將加速成長，因為該行業正在為 2027 年的大幅排放法規做準備。

On a six-month sequential basis, ACT is projecting double-digit percentage-point growth in Class 8 build each half-year, from second half 2024 to second half 2025.

ACT 預計，從 2024 年下半年到 2025 年下半年，每半年 8 級建築數量將實現兩位數百分點的成長。

Then, as it relates to construction and agriculture markets, our electrical systems business suffered from further deterioration as a majority of our key customers in the space have seen declines ranging from 15% to 20% compared to last year.

然後，由於與建築和農業市場相關，我們的電氣系統業務進一步惡化，因為該領域的大多數主要客戶與去年相比下降了 15% 至 20%。

As a result, the new business that we have won is ramping slower, with the majority of new programs delayed or running at a lower volume.

因此，我們贏得的新業務成長速度較慢，大多數新專案都被推遲或運行量較低。

Despite this weakness, we remain focused on pursuing new business, and calibrating our current footprint to current conditions.

儘管存在這一弱點，我們仍然專注於尋求新業務，並根據當前條件調整我們目前的業務範圍。

Turning to slide 13, I'll share several thoughts on our updated outlook for 2024.

轉向幻燈片 13，我將分享關於我們更新的 2024 年展望的一些想法。

Accounting for recent CVG developments and current market conditions, we are adjusting our quantitative annual guidance at the revenue and adjusted EBITDA level.

考慮到最近的 CVG 發展和當前的市場狀況，我們正在調整收入和調整後 EBITDA 水準的量化年度指導。

Industry forecasts are still projecting a decline in North America Class 8 truck builds by approximately 9%.

產業預測仍預計北美 8 級卡車產量將下降約 9%。

Better than the prior projection of a 16% decline, this positive revision is still offset by a weakening in our construction and agriculture end markets, which is consistent with the commentary we have seen from large OEMs in those industries.

這項積極修正仍被建築和農業終端市場的疲軟所抵消，好於先前預測的 16% 下降，這與我們從這些行業的大型原始設備製造商那裡看到的評論一致。

Given the confluence of end-market demand pressures, we have adjusting our guidance range to $900 million to $960 million in full year 2024 revenues.

鑑於終端市場需求壓力的疊加，我們將 2024 年全年營收指引範圍調整為 9 億至 9.6 億美元。

We are also providing an adjusted guidance scenario in which we exclude contributions from our cab structures business and a potential industrial automation transaction, a scenario in which we expect a range of $730 million to $780 million in full year 2024 revenues.

我們還提供了調整後的指導情景，其中我們排除了駕駛室結構業務和潛在的工業自動化交易的貢獻，在這種情況下，我們預計2024 年全年收入將在7.3 億美元至7.8 億美元之間。

We believe these strategic actions will position us to benefit as our end markets rebound and streamline our organization.

我們相信，隨著終端市場的反彈和精簡我們的組織，這些策略行動將使我們受益。

Given the previously mentioned truck build and construction and agriculture market outlooks, combined with execution challenges, we have also ordered our adjusted EBITDA guidance expectations to the range of $42 million to $52 million for 2024.

考慮到前面提到的卡車製造和農業市場前景，再加上執行方面的挑戰，我們也將 2024 年調整後的 EBITDA 指導預期調整為 4,200 萬美元至 5,200 萬美元。

Our adjusted EBITDA guidance range is $28 million to $36 million, assuming both transactions are finalized.

假設兩項交易均已完成，我們調整後的 EBITDA 指引範圍為 2,800 萬美元至 3,600 萬美元。

We believe that the alignment of our organization and our internal efforts we have taken to reduce cost and increase efficiencies, going forward, will allow us to achieve our revenue and adjusted EBITDA goals.

我們相信，我們的組織和我們為降低成本和提高效率而採取的內部努力的協調一致，將使我們能夠實現我們的收入和調整後的 EBITDA 目標。

This financial position will also allow us to manage our debt levels.

這種財務狀況也將使我們能夠管理我們的債務水平。

We still maintain our goal of improving profitability through restructuring efforts to cut cost and heightened efficiency while making other strategic decisions to streamline our organization and rightsize our businesses.

我們仍然保持透過重組努力來降低成本和提高效率來提高獲利能力的目標，同時做出其他策略決策來精簡我們的組織並調整我們的業務規模。

We anticipate all of these actions will spur working capital improvement, and increase free cash flow as we continue to execute our strategy.

我們預計所有這些行動將刺激營運資本改善，並在我們繼續執行我們的策略時增加自由現金流。

That concludes my financial overview and outlook commentary.

我的財務概覽和展望評論到此結束。

I will now turn the call back over to James for some additional thoughts on the expected benefits of the key actions we are taking in 2024.

現在，我將把電話轉回給 James，請他就我們 2024 年採取的關鍵行動的預期效益提出一些額外的想法。

Thank you, Andy.

謝謝你，安迪。

Turning to slide 14, I'll reiterate our short-term plan to simultaneously counteract our end-market demand declines and improve our operating model.

轉向投影片 14，我將重申我們的短期計劃，以同時應對終端市場需求下降並改善我們的營運模式。

With vehicle solutions, we're counteracting headwinds associated with a key customer product launch and operational inefficiencies that impacted multiple sites through several dedicated actions.

借助車輛解決方案，我們正在透過多項專門行動來應對與關鍵客戶產品發布和營運效率低下相關的阻力，這些阻力影響了多個站點。

These include the consolidation of our Chillicothe facility, which we expect to complete in Q3 of this year, the sale of our cab structures business, and deploying both internal and external teams to improve productivity going forward.

其中包括我們預計將在今年第三季完成的奇利科西工廠的整合、駕駛室結構業務的出售以及部署內部和外部團隊以提高未來的生產力。

These efforts should result in a streamlined vehicle solutions business with increased operating leverage moving forward.

這些努力應該會帶來精簡的車輛解決方案業務，並提高未來的營運槓桿。

Within electrical systems, the significant dislocation in the construction and agriculture end markets and corresponding slower ramp of new business wins is being offset by our efforts to reduce headcount, rightsize production, and allocate utilization to our lower-cost facilities.

在電力系統中，建築和農業終端市場的嚴重混亂以及相應的新業務成長放緩正在被我們減少員工數量、調整生產規模以及將利用率分配給低成本設施的努力所抵消。

These efforts should result in a new operating model that positions CVG as a beneficiary once these end markets recover.

這些努力應該會產生一種新的營運模式，一旦這些終端市場復甦，CVG 就會成為受益者。

With improved economics as our new business wins ramp up with a lower cost structure than they would have had previously.

隨著我們新業務的增加，經濟效益的改善，成本結構比以前更低。

Within aftermarket, as we mentioned earlier, we will remain diligent in our actions to take steps that optimize our internal processes, including seat delivery performance and reduced lead times.

在售後市場，正如我們之前提到的，我們將繼續努力採取措施優化我們的內部流程，包括座位交付性能和縮短交貨時間。

Taking these productive actions ahead of an improved customer demand environment should prove to be fruitful, similar to actions taken across the company.

在改善客戶需求環境之前採取這些有成效的行動應該會取得豐碩成果，類似於整個公司採取的行動。

Our collective efforts are poised to effectively transform our business through our strategic refocusing of our efforts toward our core vehicle business and our high-growth segment, electrical systems.

透過我們的集體努力，我們將策略性地重新調整我們的工作重點，轉向我們的核心汽車業務和高成長的電氣系統業務，從而有效地改變我們的業務。

We look forward to reshaping CVG to be a more profitable industry leader and a partner of choice for our customers.

我們期待將 CVG 重塑為利潤更高的行業領導者和客戶的首選合作夥伴。

With that, I will now turn the call back over to the operator to open up the line for questions.

這樣，我現在將把電話轉回給接線員，以開通提問線路。

Operator?

操作員？

(Operator Instructions)

（操作員說明）

John Franzreb, Sidoti.

約翰·弗蘭茨雷布，西多蒂。

I'd actually like to start with the delays and deferred revenue that you're experiencing.

我實際上想從您遇到的延誤和遞延收入開始。

Can you put that in context, and when would you expect that to catch up?

您能否將其放在上下文中，您預計什麼時候會趕上？

Yeah, John, this is James.

是的，約翰，這是詹姆斯。

Thanks for the question, and thanks for calling in.

感謝您的提問，也感謝您的來電。

Several customers that we book new business with modify their start of production days as well as their ramp schedules.

我們預訂新業務的一些客戶修改了他們的生產開始日期以及產能計劃。

As you may have noticed with several of the EV OEMs, they have significant delayed ramp-up schedules.

您可能已經注意到，一些電動車原始設備製造商的產能計劃明顯延遲。

Some of the major non-electrical vehicles OEMs that have electrical vehicle platforms as well as electric vehicle OEMs in both light-duty, medium-duty, heavy-duty truck markets, and other delivery van and markets like that.

一些擁有電動車平台的主要非電動汽車原始設備製造商以及輕型、中型、重型卡車市場以及其他送貨車和類似市場的電動車原始設備製造商。

So we don't know for sure when they will get to the original volume as they had telegraphed when we won the business.

因此，我們不確定他們什麼時候能達到原始數量，因為我們贏得業務時他們已經電報了。

But we expect, as markets recover, that their ramp schedules will go up.

但我們預計，隨著市場復甦，他們的產能計畫將會增加。

But they don't give us any indication exactly what volumes will hit in what time period, post when we are awarded the business.

但他們沒有向我們提供任何具體指示，即在我們獲得業務時會在什麼時間段內達到多少銷售量。

They expect us to have capacity in place, and be able to respond to the awarded quoted volumes that we won the business at.

他們希望我們具備適當的能力，並且能夠對我們贏得業務的報價量做出回應。

So we make adjustments when their volumes don't materialize or when they are delayed or slowed with our cost structure, but we still have to be ready whenever they ramp up to the point where they're closer to the awarded volumes.

因此，當它們的銷售量沒有實現，或者當它們因我們的成本結構而延遲或放緩時，我們會做出調整，但每當它們增加到更接近授予的銷售量時，我們仍然必須做好準備。

Okay.

好的。

And in a similar vein, you mentioned that there's program wind-downs.

同樣，您提到了計劃的逐步結束。

How much just in revenue was hurt by that process, and is that process completed, and if not when will it be?

該流程對收入造成了多少損失？

Yeah, so each year when we win new business, some of it is replacing business that's ending.

是的，所以每年當我們贏得新業務時，其中一些會取代即將結束的業務。

And also, we have programs that we have exited contracts with because it's a different configuration or we didn't win the replacement business, or it was a non-profitable revenue stream for us.

而且，我們已經終止了一些項目的合同，因為它是不同的配置，或者我們沒有贏得替代業務，或者這對我們來說是一個非營利的收入來源。

So we intentionally allow that program to end without continuing or work with our customers and OEMs to make sure that we have alignment on a reasonable and consistent exit strategy they're aligned with.

因此，我們有意允許該計劃結束，而不是繼續或與我們的客戶和原始設備製造商合作，以確保我們與他們保持一致的合理且一致的退出策略。

We might be able to share a little more from Andy's perspective on quantifying the impact on that.

我們或許可以從安迪的角度分享更多關於量化對此影響的觀點。

Yeah, so John, good morning, it's Andy.

是的，約翰，早安，我是安迪。

So the one that I think you're asking about is what we noted in our electrical systems segment this quarter, as we, indeed, have won a program related to passenger vehicles in Europe that back a year go, when we -- remember we have a lot of price negotiation with our customers.

因此，我認為您要問的是我們本季度在電氣系統部門所注意到的內容，因為我們確實贏得了一項與歐洲乘用車相關的項目，該項目早在一年前，當時我們——記住我們與我們的客戶有很多價格談判。

And when we discussed that, when we saw business that's not profitable, we will walk away from them.

當我們討論這個問題時，當我們看到無法獲利的業務時，我們就會放棄它們。

So as you know that the passenger vehicles tend to have lower profitability.

如您所知，乘用車的獲利能力往往較低。

And there's one program that we exited in Europe.

我們在歐洲退出了一項計劃。

It's not so big in terms of the overall company's revenue, it's the low, single digit million dollars.

就公司整體收入而言，這並不是很大，只是個位數的百萬美元。

But nevertheless, that's something that we committed to not to maintain unprofitable business.

但儘管如此，我們還是承諾不維持無利可圖的業務。

Thank you, Andy.

謝謝你，安迪。

And I got to say, guys, that slide about the bridge to the new guide and the old guide, it was very helpful.

我必須說，夥計們，那張關於新指南和舊指南橋樑的幻燈片非常有幫助。

And I'm curious about two things on that slide.

我對幻燈片上的兩件事很好奇。

One, when you're talking, in the slide before, you talk about the softening in the ag and construction markets of 10% and 15%.

第一，當您在前面的幻燈片中談論時，您談到了農業和建築市場 10% 和 15% 的疲軟。

Are you signaling to us that you expect your business to be down in lockstep with global market declines?

您是否向我們發出信號，表示您預計您的業務將隨著全球市場的下滑而下滑？

Or will you be different from that because of new program wins?

或者你會因為新項目的勝利而有所不同嗎？

John, I would say, overall, our legacy business will tend to follow our OEM schedules.

約翰，我想說，總的來說，我們的傳統業務將傾向於遵循我們的 OEM 時間表。

So we saw them talking about 15% to 20% declines in different sub-segments of the overall construction and agriculture market.

因此，我們看到他們談論整個建築和農業市場的不同細分市場下降了 15% 到 20%。

We clearly have some offset with new programs.

我們顯然對新計劃有一些抵銷。

And if you can see our end-market exposures, in electrical systems, we have the majority of our exposure to the construction and agriculture market, but we also started to have medium duty trucks in other end markets as well.

如果您可以看到我們在電氣系統方面的終端市場風險，我們的大部分風險都集中在建築和農業市場，但我們也開始在其他終端市場擁有中型卡車。

So those would be a little bit of an offset to the current dynamics.

因此，這些將稍微抵消當前的動態。

Okay, just trying to get a sense of that.

好吧，只是想了解一下。

And I don't want to hog this, but just -- I am curious about how this changes your CapEx budget for the full-year and what you're looking to spend for 2024?

我不想霸占這個，但只是 - 我很好奇這會如何改變您的全年資本支出預算以及您希望在 2024 年支出什麼？

Yes, so as we look towards the next couple quarters, the company will remain a business portfolio (inaudible) the cabs business and industrial automation, our previous forecast of 2% to 3% CapEx of revenues will apply.

是的，因此，當我們展望未來幾季時，該公司將繼續保持計程車業務和工業自動化的業務組合（聽不清楚），我們先前預測的收入 2% 至 3% 的資本支出將適用。

So meaning that if the revenues come down, you'll also see our CapEx coming down in a similar fashion.

因此，這意味著如果收入下降，您也會看到我們的資本支出以類似的方式下降。

(Operator Instructions)

（操作員說明）

And we do not have any questions.

我們沒有任何問題。

At this time, I will turn the call back over to Mr. James Ray for closing comments.

此時，我會將電話轉回 James Ray 先生以徵求結束意見。

Thank you, Operator.

謝謝你，接線生。

And I would like to thank you all for joining today's call.

我要感謝大家參加今天的電話會議。

I want to thank the entire CVG team for their hard work and continued focus on executing our long-term growth strategy.

我要感謝整個 CVG 團隊的辛勤工作以及對執行我們長期成長策略的持續關注。

We are working aggressively to position CVG as a more durable business.

我們正在積極努力，將 CVG 定位為更持久的業務。

We look forward to executing our transformation strategy, and we are confident we can improve our operating model and sustain a profitable business in the future.

我們期待執行我們的轉型策略，我們有信心能夠改善我們的營運模式並在未來維持獲利業務。

Thank you very much.

非常感謝。

Ladies and gentlemen, this concludes your conference call for today.

女士們、先生們，今天的電話會議到此結束。

We thank you for participating and ask that you please disconnect your lines.

我們感謝您的參與，並請您斷開線路。