Commercial Vehicle Group Inc (CVGI) 2024 Q3 法說會逐字稿

Good morning, ladies and gentlemen and welcome to the CVGI third quarter, 2024 earnings conference call.

女士們、先生們，早安，歡迎參加 CVGI 2024 年第三季財報電話會議。

(Operator instruction).

（操作員指令）。

This is call being recorded on Tuesday, November 5 2024.

這是 2024 年 11 月 5 日星期二錄製的通話。

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

現在我想將會議交給財務長 Andy Cheung。

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

謝謝接線員，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.

今天與我一起參加電話會議的還有 CVG 總裁兼執行長詹姆斯雷 (James Ray)。

This morning, we will provide a brief company update as well as commentary regarding our third quarter, 2024 results.

今天上午，我們將提供簡短的公司更新以及有關 2024 年第三季業績的評論。

After which we will open the call for questions.

之後我們將開始提問。

As a reminder, this conference call is being webcast and the Q3 2024 earnings call presentation which we will refer to during this call is available on our website.

提醒一下，本次電話會議正在網路直播，我們將在本次電話會議中參考的 2024 年第三季財報電話會議簡報可在我們的網站上查閱。

Both may contain forward-looking savings 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節約，包括但不限於對未來時期的市場趨勢、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.

由於存在某些風險和不確定性，實際結果可能與預期結果不同。

These risk and uncertainties may include but are not limited to economic conditions in the market in which CVG operates.

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。

Fluctuations in the production volumes of vehicles for which CVG is a supplier, financial covenant compliance and liquidity with associated with conducting business in foreign countries and currencies and other risks.

CVG 作為供應商的汽車產量波動、與在國外開展業務以及貨幣相關的財務契約合規性和流動性以及其他風險。

As detailed in our SEC filings, I will now turn the call over to James Ray to provide a company update.

正如我們提交給美國證券交易委員會 (SEC) 的文件中詳細說明的那樣，我現在將把電話轉給詹姆斯·雷 (James Ray) 來提供公司最新情況。

Thank you, Andy.

謝謝你，安迪。

I'd like to turn your attention to the supplemental earnings presentation starting on slide 3.

我想請大家關注從投影片 3 開始的補充收益報告。

Since taking over as CEO 11 months ago, my focus has been on reshaping CVG's operating model, creating a lower cost and more agile foundation for the company.

自 11 個月前接任執行長以來，我一直致力於重塑 CVG 的營運模式，為公司創造更低成本、更靈活的基礎。

As is highlighted on the right-hand side of this page, we have taken several strategic steps this year in order to refine our business model and create a more customer focused company.

正如本頁右側所強調的，我們今年採取了若干策略步驟，以完善我們的商業模式並創建更加以客戶為中心的公司。

Specifically, the sale of finish tech, our cap structures business, Chillicothe Ohio facility and industrial automation segment have streamlined our core capabilities resulting in a more focused portfolio with an improved cost structure.

具體而言，出售精加工技術、我們的瓶蓋結構業務、俄亥俄州奇利科西工廠和工業自動化部門簡化了我們的核心能力，從而形成了更集中的投資組合和更好的成本結構。

A heightened focus on operational excellence and a more deliberate commercial strategy.

更重視卓越營運和更深思熟慮的商業策略。

I will cover the benefits of each transaction in a moment, but we expect these transactions as well as our restructuring efforts to create a more streamlined operating model and drive margin expansion as we continue to execute and look to drive future growth particularly within our electrical systems segment.

我將在稍後介紹每筆交易的好處，但我們預計這些交易以及我們的重組工作將創造一個更加精簡的營運模式並推動利潤率擴大，因為我們將繼續執行並尋求推動未來成長，特別是在我們的電氣系統部門。

Not only have these actions accelerated our near-term operating priorities, but they have also helped us pay down debt of $13 million to date.

這些舉措不僅加速了我們近期的營運重點，而且還幫助我們償還了迄今為止 1,300 萬美元的債務。

We also received an additional $20 million in proceeds associated with our cap structure sale in October.

我們還收到了 10 月與上限結構出售相關的額外 2000 萬美元收益。

This was the final payment of the $40 million.

這是4000萬美元的最後一筆付款。

(Technical problem).

（技術問題）。

As I mentioned, we remain focused on a return to growth and new business wins will play a key role in reaching that goal.

正如我所提到的，我們仍然專注於恢復成長，新業務的成功將在實現這一目標中發揮關鍵作用。

We procured another $18 million in new business wins in the third quarter.

我們在第三季又獲得了 1800 萬美元的新業務。

Bringing the year-to-date total new business wins to approximately $95 million across all segments.

今年迄今為止，所有部門的新業務盈利總額已達到約 9,500 萬美元。

As a reminder, our estimates of the peak value of new business wins once fully ramped represent a risk adjusted assessment of our customers estimate of their ultimate production rates.

提醒一下，我們對全面投入生產後新業務高峰的估計，代表了對客戶最終生產力估計的風險調整評估。

These programs can often take years to fully ramp and our customers vary in their ability to predict their peak production rates.

這些專案通常需要數年時間才能完全成熟，我們的客戶預測尖峰生產力的能力也各不相同。

Over time we've gotten more rigorous in vetting those estimates resulting in the numbers that you're seeing today.

隨著時間的推移，我們對這些估計的審查變得更加嚴格，最終得到了您今天看到的數字。

Keep in mind that these numbers purely reflect new business added and do not include any current programs winding down or business we voluntarily ended due to profitability reasons.

請記住，這些數字純粹反映新增加的業務，並不包括任何目前正在結束的項目或由於盈利原因而我們自願終止的業務。

We've also taken action on the head count front, eliminating approximately 1,200 roles or roughly 15% of our organization's workforce from continuing operations compared to the prior year through both restructuring and ongoing continuous improvement efforts, we believe these actions create a lower cost, more efficient and agile company positioned for future success.

我們也在員工人數方面採取了行動，透過重組和持續改進努力，與前一年相比，在持續營運中裁減了約 1,200 個職位，約佔組織員工總數的 15%，我們相信這些舉措將使公司成本更低、更有效率、更靈活，為未來的成功做好準備。

While we expect these portfolio actions to drive future margin expansion and facilitate growth, we are not happy with our third quarter results.

雖然我們預計這些投資組合行動將推動未來利潤率擴大並促進成長，但我們對第三季的業績並不滿意。

They were below internal expectations as our revenues and profitability were impacted by operational inefficiencies related to the strategic portfolio actions continued softness in our end markets, customer production schedule changes and elevated launch costs to support new program wins.

它們低於內部預期，因為我們的收入和盈利能力受到與戰略投資組合行動相關的運營效率低下的影響，我們的終端市場持續疲軟，客戶生產計劃變化以及為支持新項目的勝利而增加的發射成本。

Andy will cover the details in a few minutes but the bottom line is at a time when we are seeing continued weakness in construction and agriculture markets in our electrical segment, we also absorb additional significant facility improvement costs and production and efficiencies ahead of the strategic transactions and vehicle solutions and industrial automation segments.

安迪將在幾分鐘內介紹細節，但最重要的是，在我們看到電氣部門的建築和農業市場持續疲軟的同時，我們還在戰略交易、汽車解決方案和工業自動化部門之前吸收了額外的重大設施改進成本以及生產和效率。

We believe with the strategic actions behind us and the operating model changes we are proactively making, we can navigate fluctuating production schedules more effectively moving forward.

我們相信，憑藉我們採取的策略行動和積極進行的營運模式變革，我們可以更有效地應對不斷變化的生產計劃。

If you turn the slide 4, I want to highlight in detail, some of our key strategic actions taken to improve CV GS operating model.

如果你翻到投影片 4，我想詳細強調我們為改善 CV GS 營運模式所採取的一些關鍵策略行動。

First, we closed the sale of our finished tech business, a hydrographic and paint decorator in January which was identified as an area where we could streamline our product portfolio to improve our operational focus in the near term.

首先，我們於一月份完成了成品技術業務（一家水文和油漆裝飾公司）的出售，這被確定為我們能夠精簡產品組合以在短期內改善營運重點的領域。

As previously discussed, we also completed the sale of our cap structures, business in Kings Mountain, North Carolina.

如同前面所討論的，我們也完成了位於北卡羅來納州金斯山的資本結構業務的出售。

The transaction closed on October 1st.

該交易於10月1日完成。

Although there were some incremental costs associated with facility improvement and production inefficiencies ahead of deal closing the majority of the $40 million of proceeds was used to pay down debt.

儘管在交易完成前，設施改善和生產效率低下會產生一些增量成本，但 4,000 萬美元收益中的大部分都用於償還債務。

The transaction aligns with our long term goals of reducing cyclical classic market exposure and lowering the capital intensity of our vehicle solutions segment.

此交易符合我們減少週期性經典市場風險和降低汽車解決方案部門資本密集度的長期目標。

Additionally, the sale of our production facility in Chillicothe Ohio closed in the third quarter after consolidating the facility's production into other CVG manufacturing locations.

此外，在將該工廠的生產整合到其他 CVG 製造地點後，我們位於俄亥俄州奇利科西的生產工廠的出售於第三季完成。

This led to some short term production headwinds as production plans were optimized, but the consolidation will ultimately improve capacity utilization with a lower cost to serve our customers driving improved margins for the company.

由於生產計劃進行了優化，這導致了一些短期生產阻力，但合併最終將提高產能利用率，以更低的成本為客戶服務，從而提高公司的利潤率。

You heard me talk in prior calls about our goal to strengthen our vehicle solutions business.

您在之前的電話會議中聽到我談到了加強我們的汽車解決方案業務的目標。

These three transactions are great examples of how we're doing that simplifying improving profitability and efficiency and upgrading our revenue mix.

這三筆交易很好地說明了我們如何簡化流程、提高獲利能力和效率並升級我們的收入結構。

Finally, our most recent strategic portfolio action involves the sale of our industrial automation business.

最後，我們最近的策略性投資組合行動涉及出售我們的工業自動化業務。

This closed on October 30th.

該活動於 10 月 30 日結束。

Our industrial automation business has been challenged in recent quarters.

我們的工業自動化業務在最近幾季面臨挑戰。

So after evaluating different strategic options, we retained an investment banker and sold this non strategic business, removing its operating losses and allowing our team to focus on our core vehicle business within electrical systems, vehicle solutions and aftermarket and accessories.

因此，在評估了不同的策略選擇之後，我們聘請了一位投資銀行家並出售了這項非策略性業務，消除了其營運損失，並讓我們的團隊專注於電氣系統、汽車解決方案、售後市場和配件等核心汽車業務。

While some of these actions have caused short term financial pressures, we remain confident in the value CVG is poised to create and believe these efforts will bridge the GAAP between where we are and where we want to be.

雖然其中一些舉措造成了短期財務壓力，但我們仍然對 CVG 即將創造的價值充滿信心，並相信這些努力將在 GAAP 上彌合我們現在所處的位置和我們想要達到的位置之間的差距。

In addition to reducing complexity, the improved operating model resulting from these actions, we believe will drive accretive growth, accelerate margin expansion, increase our capital efficiency and ultimately enhance shareholder value.

除了降低複雜性之外，我們相信這些措施所帶來的營運模式的改善將推動增值成長、加速利潤率擴張、提高資本效率並最終提高股東價值。

With a more focused portfolio, we also expect to better leverage our SG and A through our continuous improvement process aligning our support functions with our revised footprint.

透過更專注的投資組合，我們還希望透過持續改進流程更好地利用我們的 SG 和 A，從而使我們的支援功能與修訂後的足跡保持一致。

Now moving on to slide 5, I'd like to highlight two exciting leadership additions that we feel will align well with our focus on an improved operating model.

現在轉到第 5 張投影片，我想強調兩位令人興奮的領導層的補充，我們認為這將與我們對改進營運模式的關注非常契合。

First, we're happy to welcome Peter Lugo, our new leader of our electrical systems segment.

首先，我們很高興歡迎我們電氣系統部門的新負責人 Peter Lugo。

Peter brings a proven track record of driving growth across multiple diverse end markets with over 30 years of relevant experience in electrical systems and industrial products across various industrial market segments.

Peter 在推動多個不同終端市場成長方面擁有良好的業績記錄，在各個工業市場領域的電氣系統和工業產品領域擁有 30 多年的相關經驗。

His background positions him well to execute our goal of returning electrical systems to growth and ultimately being the long-term growth engine of our company.

他的背景使他能夠很好地實現我們的目標，即讓電氣系統恢復成長，並最終成為我們公司的長期成長引擎。

Peter's near-term priorities will be to help CVG navigate demand pressures in our construction and agriculture and markets with an eye towards achieving full utilization of our new facilities in Mexico and Morocco.

Peter 近期的首要任務是幫助 CVG 應對建築、農業和市場方面的需求壓力，同時著眼於充分利用我們在墨西哥和摩洛哥的新設施。

Additionally, we announced the hiring of Carlos Jimenez as Executive Vice President of Global Operations and supply chain.

此外，我們也宣布聘請卡洛斯·希門尼斯 (Carlos Jimenez) 擔任全球營運和供應鏈執行副總裁。

Carlos Jimenez is a respected experienced executive who will bring a sharp focus on execution into our improved business model.

卡洛斯·希門尼斯 (Carlos Jimenez) 是一位受人尊敬的經驗豐富的高管，他將把重點放在我們改進的商業模式的執行上。

He will be responsible for all aspects of CVGs global operations including manufacturing, supply chain, procurement, logistics, continuous improvement and quality.

他將負責 CVG 全球營運的各個方面，包括製造、供應鏈、採購、物流、持續改進和品質。

He will also lead the work being done by our Global Operations Council to drive consistency and continuous improvement into our global plans.

他還將領導我們的全球營運委員會的工作，推動我們的全球計劃的一致性和持續改進。

As part of Carlos hiring, we are consolidating manufacturing and supply chain under global leadership elevating those functions from the business units which should lead to greater sourcing benefits across the company and allowing our business leaders to focus more directly on commercial success.

作為卡洛斯招募的一部分，我們正在將製造和供應鏈整合到全球領導層之下，將這些職能從業務部門中提升出來，這將為整個公司帶來更大的採購效益，並使我們的業務領導者能夠更直接地專注於商業成功。

The addition of Peter Carlos to our senior leadership team further demonstrates our commitment to fundamentally reshaping CVG.

彼得卡洛斯 (Peter Carlos) 加入我們的高階領導團隊進一步表明了我們徹底重塑 CVG 的決心。

Setting the tone from the top down as we emphasize operational excellence in all three segments and greater focus on growth within our electrical systems.

我們自上而下地定下基調，強調三個部門的卓越運營，並更加重視電氣系統的成長。

The efficiency of our supply chain and manufacturing operations will allow us to scale customer production when demand rebounds, driving incremental profitability across CVG as a whole.

當需求反彈時，我們的供應鏈和製造營運的效率將使我們能夠擴大客戶生產，從而推動整個 CVG 的獲利能力提升。

While our focus in electrical systems will facilitate margin expansion and reduce cyclicality.

而我們對電氣系統的關注將促進利潤率的擴大並減少週期性。

These leaders have a proven track record of doing just that.

這些領導者有成功做到這些的良好記錄。

And we look forward to providing an update on the progress we make.

我們期待提供有關我們取得的進展的最新資訊。

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

因此，我想將電話轉回給 Andy Cheung，以便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 6.

如果您正在關注簡報內容，請翻到投影片 6。

Just a quick reminder that as a result of the divesture of our cap structures, business and industrial automation segment.

簡單提醒一下，由於我們的資本結構、業務和工業自動化部門的剝離。

Those businesses have been reclassified to discontinued operations unless otherwise noted.

除非另有說明，這些業務已被重新歸類為停止經營業務。

All financial disclosures and comparisons made today will be focused on continuing operations.

今天的所有財務揭露和比較都將集中於持續經營。

Consolidated.

已合併。

Third quarter, 2024 revenue was $171.8 million.

2024 年第三季營收為 1.718 億美元。

As compared to $202.9 million in the prior year period.

相比之下，去年同期為 2.029 億美元。

The decrease in revenues is due primarily to lower sales as a result of softening in customer demand in our vehicle solutions and electrical system segments.

收入下降主要是由於汽車解決方案和電氣系統部門的客戶需求減弱而導致的銷售下降。

Adjusted EBITA was $4.3 million for the third quarter compared to $12.2 million in the prior year.

第三季調整後 EBITA 為 430 萬美元，去年同期為 1,220 萬美元。

Adjusted EBITA margins were 3.5% down 350 basis points as compared to adjusted EBITA margins of 6% in the third quarter of 2023.

調整後的 EBITA 利潤率為 3.5%，與 2023 年第三季的 6% 調整後 EBITA 利潤率相比下降了 350 個基點。

Driven primarily by lower volumes, inflationary impacts and the operational inefficiencies we experienced across our business interest expense was $2.4 million as compared to $2.5 million in the third quarter of 2023.

主要受交易量下降、通膨影響和整個業務營運效率低下的影響，我們的利息支出為 240 萬美元，而 2023 年第三季為 250 萬美元。

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

利息支出的減少主要由於平均債務餘額下降但相應期間浮動利率上升所致。

Net loss for the quarter was $0.9 million or a loss of 3¢ per diluted share as compared to a net income of $4.7 million or 14¢ per diluted share in the prior year adjusted net loss for the quarter was $0.4 million or a loss of 1¢ per diluter share as compared to adjusted net income of $4.7 million or 14¢ per diluted share in the prior year.

本季淨虧損為 90 萬美元，或每股攤薄虧損 3 美分，而上年同期的淨收入為 470 萬美元，或每股攤薄虧損 14 美分。而上年同期的淨虧損為 40 萬美元，或每股攤薄虧損 1 美分，而上年同期的調整後淨虧損為 470 萬美元，或每股攤薄虧損。

Free cash flow from continuing operations for the quarter was $17 million compared to $11 million In the prior year.

本季來自持續經營的自由現金流為 1,700 萬美元，去年同期為 1,100 萬美元。

The free cash flow generated in the quarter was supported by the first payment of $20 million received from the cap structure sale in September operating cash flow in the quarter was weighed down by restructuring charges and the operational inefficiency we experienced.

本季產生的自由現金流由 9 月份上限結構出售收到的首筆 2000 萬美元付款所支持，但本季的營運現金流受到重組費用和我們經歷的營運效率低下的拖累。

As a reminder we received the second of the last $20 million of the proceeds from the cap structure sale on October 1st, meaning that the amount is not included in our cash balance as of September 30th adjusting our cash balance to include the additional proceeds.

提醒一下，我們於 10 月 1 日收到了上限結構出售所得的最後 2000 萬美元中的第二筆，這意味著該金額不包括在我們截至 9 月 30 日的現金餘額中，我們會調整我們的現金餘額以包括額外收益。

Our net leverage ratio is currently 2.5 times adjusted trailing 12 month adjusted EBIDTA from continuing operations.

我們的淨槓桿率目前為持續經營業務過去 12 個月調整後 EBIDTA 的 2.5 倍。

Moving to segment results beginning on slide 7, our electrical system segment achieved revenues of $43.4 million a decrease of 19% as compared to the year ago quarter.

從第 7 頁開始查看分部業績，我們的電氣系統分部實現了 4,340 萬美元的收入，與去年同期相比下降了 19%。

With the decrease resulting primarily from a global softening in the construction and agricultural end markets and the slower real of new business wins.

下降的主要原因是全球建築和農業終端市場疲軟，以及新業務實際成長放緩。

Despite the revenue decline.

儘管收入下降。

We maintain our goal of making electrical systems our largest segment and we are still focused on growth opportunities.

我們始終堅持將電氣系統打造為我們最大細分市場的目標，並且我們仍然專注於成長機會。

As James mentioned, we have made a senior leadership change to help ignite a return to growth in electrical systems.

正如詹姆斯所提到的，我們進行了高層領導變動，以幫助推動電氣系統的恢復成長。

Despite the ongoing weakness in construction and agricultural markets, we continue to achieve new business wins.

儘管建築業和農業市場持續疲軟，我們仍繼續取得新的業務成功。

Putting the company in a position to capitalize when end market demand within construction and agricultural markets rebound.

當建築和農業市場的終端市場需求反彈時，公司將能夠利用這一優勢。

Adjusted operating income was $0.9 million.

調整後的營業收入為 90 萬美元。

A decrease of $5 million compared to the third quarter of 2023 operating income was negatively impacted by lower customer demand and unfavorable foreign exchange impact.

與 2023 年第三季相比，營業收入減少 500 萬美元，受到客戶需求下降和不利的外匯影響的負面影響。

Turning to slide 8, our vehicle solution segment third quarter revenues decreased 16% to $97.3 million compared to the year ago quarter due primarily to lower sales volume as a result of decreased customer demand and the wind down of certain programs.

第 8 頁，我們的汽車解決方案部門第三季營收與去年同期相比下降 16％ 至 9,730 萬美元，主要原因是客戶需求下降和某些項目的結束導致銷售量下降。

In addition, we experienced operational inefficiencies related to our plan's consolidation as we move production into new facilities, we continue to be impacted by new program launch costs, and we also conducted some operational remediation investments and faced increased freight cost in the quarter.

此外，隨著我們將生產轉移到新設施，我們經歷了與計劃合併相關的運營效率低下的問題，我們繼續受到新項目啟動成本的影響，我們還進行了一些運營補救投資，並且本季度面臨運費增加的問題。

As a result of these factors adjusted operating income for the third quarter was $3.8 million a decrease of $4.5 million compared to the prior year.

由於這些因素，第三季調整後的營業收入為 380 萬美元，較上年同期減少 450 萬美元。

As mentioned earlier, we have closed on our sales of both our cap structures.

如同前面所提到的，我們已經完成了兩種上限結構的銷售。

Business and our Chillicothe Ohio production facility streamlining our business and notably lighten the capital intensity of our vehicle solution business.

業務和我們位於俄亥俄州奇利科西的生產工廠簡化了我們的業務，並顯著減輕了我們的汽車解決方案業務的資本強度。

We believe the vehicle solutions business is now a more streamlined, less costly and more profitable business.

我們相信，汽車解決方案業務現在更加精簡、成本更低、利潤更高。

Following the sale of our cap structure business and consolidation of production with the sale of our facility, we remain focused on vehicle solutions as a core business to CVG and it remains a focal point for our team as we continue to reduce cost, accelerate our operational excellence initiatives and win new business at higher margins.

在出售我們的資本結構業務、透過出售我們的工廠來整合生產之後，我們仍然專注於汽車解決方案作為 CVG 的核心業務，並且它仍然是我們團隊的關注焦點，因為我們將繼續降低成本、加快我們的卓越營運計劃並以更高的利潤贏得新業務。

Moving to slide 9, our aftermarket and accessory segment revenues in the third quarter decreased 8% to $31.1 million compared to the year ago quarter.

第 9 頁，我們的售後市場和配件部門第三季營收與去年同期相比下降 8% 至 3,110 萬美元。

Primarily resulting from lower sales volume due to a reduction of backlog in the prior year period, as well as decreased customer demand adjusted operating income for the third quarter was $3.9 million a decrease of $0.4 million compared to the prior year.

主要是由於去年同期積壓訂單減少導致銷售量下降，以及客戶需求下降，第三季調整後營業收入為 390 萬美元，較上年減少 40 萬美元。

The decrease is primarily attributable to lower sales volumes and operational inefficiencies.

下降主要歸因於銷售量下降和營運效率低。

Despite the charges taken on operational inefficiency remediation, the aftermarket specific revenue funnel opportunities continue to grow as we focus our efforts on improving order to delivery lead times to drive further customer demand within this business.

儘管我們為改善營運效率低下付出了代價，但隨著我們集中精力改善訂單到交貨的時間以進一步推動該業務中的客戶需求，售後市場特定的收入管道機會仍在繼續增長。

Moving to our key and market outlook on slide 10 according to ACT's class eight heavy truck bill forecast 2024 estimates imply a 7% decline year over year volumes ACT forecast a further decline in 2025 with a 10% drop in bills anticipated.

根據 ACT 的 8 級重型卡車帳單預測，2024 年估計表明，第 10 頁的關鍵和市場展望意味著同比銷量將下降 7%，ACT 預測 2025 年將進一步下降，預計帳單將下降 10%。

Despite the weakness projected in 2024 and 25 we expect a strong rebound in bills of almost 25% in 2026 as the industry prepares for an update in emissions regulations in 2027.

儘管預計 2024 年和 2025 年會出現疲軟趨勢，但我們預計 2026 年的帳單將強勁反彈近 25%，因為該行業正在為 2027 年更新排放法規做準備。

Moving to construction market outlook, the construction equipment and market is seeing global weakening with volumes anticipated to decline around 10% with continued higher interest rates weaker housing starts and slower commercial real estate activity.

談到建築市場前景，由於利率持續走高、新屋開工疲軟以及商業房地產活動放緩，全球建築設備和市場正呈現疲軟趨勢，預計交易量將下降 10% 左右。

Agricultural and markets are facing similar demand headwinds with current estimates indicating an approximate 15% year over year decline.

農業和市場面臨類似的需求阻力，目前估計年減約 15%。

This drop is largely driven by higher interest rates and lower commodity prices which have dampened demand for equipment.

下降的主要原因是利率上升和大宗商品價格下跌抑制了設備需求。

Based on the preliminary outlooks we receive from our customers for early 2025.

根據我們從客戶收到的 2025 年初的初步預測。

Both construction and agriculture and markets are looking relatively flat year over year.

建築業、農業和市場年比來看都相對穩定。

However, we also remain optimistic about the long term growth potential of both construction and agricultural end markets as we see ongoing replacement needs and undermining secular trends returning these markets to growth in 2026.

然而，我們仍然對建築和農業終端市場的長期成長潛力持樂觀態度，因為我們看到持續的替代需求和破壞性的長期趨勢將使這些市場在 2026 年恢復成長。

Turning to slide 11.

翻到第 11 張投影片。

I'll share some thoughts on our updated outlook for 2024.

我將分享一些關於我們對 2024 年更新的展望的想法。

Accounting for recent CVG developments, delayed and lower new business win ramp schedules prevailing truck bill forecast and continued weakness in construction and agricultural and markets.

考慮到近期 CVG 的發展、新業務中標時間表的延遲和降低、現行卡車訂單預測以及建築和農業市場的持續疲軟。

We are lowering our quantitative annual guidance for revenues and adjusted EBIDTA as well as tightening the respective ranges given current demand pressures coupled with inflationary impacts and operational inefficiencies.

考慮到當前的需求壓力以及通膨影響和營運效率低下，我們正在下調收入和調整後 EBIDTA 的定量年度指導並收緊相應的範圍。

We are adjusting our full year 2024 revenue guidance range to $710 million to $740 million which is down from $730 to $780 million.

我們將 2024 年全年營收預期範圍從 7.3 億美元至 7.8 億美元調整為 7.1 億美元至 7.4 億美元。

We are also lowering our adjusted EBIDTA guidance expectations to the range of $20 to $25 million for 2024 which is down from $28 to $36 million.

我們也將 2024 年的調整後 EBIDTA 指引預期從 2,800 萬至 3,600 萬美元下調至 2,000 萬至 2,500 萬美元之間。

Based on this updated outlook, we expect our full year 2024 margin performance to be down approximately 320 to 380 basis points compared to 2023.

根據這項更新後的展望，我們預計 2024 年全年利潤率將較 2023 年下降約 320 至 380 個基點。

However importantly, we believe the alignment of our organization and the strategic portfolio actions, James highlighted previously position us better for future growth and margin expansion in 2025.

然而重要的是，我們相信，詹姆斯先前強調的組織協調和策略性投資組合行動將使我們在 2025 年獲得更好的未來成長和利潤擴大。

We expect our portfolio actions to have the most immediate impact on growth margins with the opportunity to drive SMG and a leverage going forward as we align our support functions to our smaller footprint through our ongoing continued improvement process.

我們預計，我們的投資組合行動將對成長利潤率產生最直接的影響，並有機會推動 SMG 和未來的槓桿作用，因為我們將透過持續改進流程將我們的支援功能與我們較小的足跡相結合。

That concludes my financial overview and outlook commentary.

這就是我的財務概況和前景評論。

I will now turn the call back over to James for some closing thoughts.

現在我將把電話轉回給詹姆斯，請他發表一些最後的總結。

Thank you, Andy.

謝謝你，安迪。

Turning to slide 12.

翻到第 12 張投影片。

I'd like to again reiterate our short-term plan to improve our operating model and build a stronger foundation for CVG as we enter into the fourth quarter in 2025.

我想再次重申我們的短期計劃，在進入 2025 年第四季時改善我們的營運模式並為 CVG 建立更堅實的基礎。

Within vehicle solutions.

在車輛解決方案內。

We've continued to focus on counteracting inefficiencies associated with customer product launches and we delivered on the sales of our cap structures business and our copy production facility sale.

我們繼續專注於抵消與客戶產品發布相關的低效率，並實現了我們的上限結構業務和影印生產設施銷售。

As previously communicated, we expect these efforts to result in a more streamlined vehicle solutions business with increased operating leverage.

正如之前所傳達的，我們預計這些努力將帶來更精簡的汽車解決方案業務和更高的營運槓桿。

Moving forward within electrical systems, we continue to adapt to weakening construction and agriculture and markets and slower new program ramps by reducing head count, right, sizing production and allocating utilization to our lower cost facilities.

在電力系統領域，我們將繼續適應建築、農業和市場的疲軟以及新專案進展放緩的情況，方式包括減少員工數量、縮小生產規模以及將利用率分配給成本較低的設施。

Additionally, we are pleased to welcome Peter Lugo is our new electrical systems leader which I covered in my earlier remarks.

此外，我們很高興歡迎 Peter Lugo 擔任我們的新電氣系統負責人，我在先前的評論中已經提到過。

Electrical systems growth remains a top priority and Peter's expertise and background will help us achieve our near term strategic goals.

電氣系統的發展仍然是重中之重，Peter 的專業知識和背​​景將幫助我們實現近期策略目標。

In total.

總計。

We expect these actions to mitigate near term demand pressure and provide an operating model that positions CVG for accelerated growth once these markets recover.

我們預計這些措施將減輕近期的需求壓力，並提供一種營運模式，使 CVG 這些市場一旦復甦就能加速成長。

Within aftermarket, we remain committed to optimizing our internal processes including the improvement of seat delivery performance and reduction of lead times.

在售後市場，我們始終致力於優化內部流程，包括提高座椅交付性能和縮短交貨時間。

Taking these actions in advance of an improved customer demand environment will position us to capitalize when the market strengthens.

在客戶需求環境改善之前採取這些行動將使我們能夠在市場走強時獲得優勢。

We have also made organization wide changes to drive performance and increased focus across all segments including the hiring of Carlos Jimenez to improve the efficiency of our supply chain and manufacturing operations.

我們還進行了組織範圍的變革，以提高績效並增強對所有部門的關注，包括聘請卡洛斯·希門尼斯（Carlos Jimenez）來提高我們的供應鏈和製造營運的效率。

As I mentioned earlier, the addition of a subject matter expert will help strengthen our commercial excellence and further stabilize our operating system.

正如我之前提到的，增加一位主題專家將有助於增強我們的商業優勢並進一步穩定我們的營運系統。

Bringing these actions together.

將這些行動結合在一起。

We believe we are well positioned to be able to scale production with customer demand, improves driving incremental profitability with minimal cost added.

我們相信，我們完全有能力根據客戶需求擴大生產規模，以最小的成本增加不斷提高獲利能力。

As we look to 2025 and beyond, we expect these efforts to drive adjusted EBIDTA margin improvement directly associated with these collective efforts.

展望 2025 年及以後，我們預計這些努力將推動與這些集體努力直接相關的調整後 EBIDTA 利潤率的提高。

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

說完這些，我現在將把電話轉回給接線員，以便開通問答熱線。

Thank you, presenters and ladies and gentlemen, you will now begin the question-and-answer session.

謝謝各位主持人、女士們、先生們，現在開始問答環節。

(Operator instruction).

（操作員指令）。

Our first question comes from the line of Joe Gomes of noble capital.

我們的第一個問題來自貴族資本的喬‧戈麥斯 (Joe Gomes)。

Good morning.

早安.

Thanks for taking my questions morning.

感謝您早上回答我的問題。

So, the first one off, I just want to start kind of technical Andy.

因此，首先，我只想開始講一些技術性的內容，安迪。

You have plans to put out the adjusted continue operating results for the 1st and 2nd quarter so we can make our models from a historical perspective, correct?

您計劃發布第一季和第二季的調整後持續經營業績，以便我們可以從歷史角度建立模型，對嗎？

Yeah.

是的。

So, if you look at our Q3 findings, so you can see that we have made the adjustment for the current quarter as well as year today.

因此，如果您查看我們的第三季調查結果，您會發現我們今天針對當前季度和今年做出了調整。

So, basically, you can always see our first half performance from adjusted basis for continuing ops.

因此，基本上，您總是可以從調整後的持續經營基礎上看到我們上半年的業績。

Our team will continue to provide that in Q4, we have a full year number.

我們的團隊將在第四季度繼續提供全年數據。

So eventually you should be able to see our one rate.

因此最終您應該能夠看到我們的一個費率。

Okay.

好的。

Thanks for that.

謝謝。

And then James, you know, the portfolio reshaping the restructuring, you know that, that was going on before you assume the CEO role, so well over a year now, how much more of this, you know, needs to be done in terms of the portfolio reshaping and restructuring and cost optimization.

然後詹姆斯，你知道，投資組合重塑和重組，你知道，那是在你擔任執行長之前進行的，所以現在已經一年多了，你知道，在投資組合重塑和重組以及成本優化方面還需要做多少工作。

Are we at that point now or is there more still to do?

我們現在是否已經到達這個地步了或是否還有更多工作要做？

Yeah, thank you for the question.

是的，謝謝你的提問。

Let me rewind the clock back to before I started, we had initiated the footprint expansion projects in Mexico and Morocco.

讓我把時鐘撥回我開始之前，我們已經啟動了在墨西哥和摩洛哥的足跡擴張計畫。

We also had started a process on our finished tech business.

我們也已經開始了已完成的技術業務的進程。

So those were the items that were in flight when I joined as CEO, obviously, I was on the board prior to that.

所以這些都是我擔任執行長時正在考慮的事情，顯然，在此之前我是董事會成員。

So, I had insight into that.

所以，我對此有所了解。

And then in January, we closed finish check.

然後在一月份，我們完成了檢查。

But we also took a harder finer look at the balance of the portfolio to determine capital requirements, determine organizational focus and capability for growth and also the market outlook for the various segments that we were considering.

但我們也更仔細地研究了投資組合的平衡，以確定資本需求、組織重點和成長能力以及我們正在考慮的各個細分市場的市場前景。

In addition to that the utilization of our assets.

除此之外，我們也利用了我們的資產。

So, during the first quarter, we determined that we were going to evaluate the success of the industrial automation launch of their new product innovation that we talked about in Q1 that did not yield the level of demand near term and would require much more investment to bring that to market over time.

因此，在第一季度，我們決定評估我們在第一季度談到的工業自動化新產品創新的成功推出，該產品在短期內沒有達到需求水平，並且需要更多的投資才能隨著時間的推移將其推向市場。

So, at that time, considering the sales funnel and considering the losses that we anticipated, we looked at other strategic alternatives.

因此，當時，考慮到銷售管道並考慮到我們預期的損失，我們研究了其他策略替代方案。

Eventually engaged investment bankers started process in Q3 and went through multiple bidding efforts and eventually closed the sale.

最終，參與的投資銀行家於第三季啟動了流程，經過多次競標，最終完成了銷售。

So from start to finish, that happened since I came in and when we started the year in initial guidance, we had not comprehended that transaction would occur this year nor have we made the decision at that time to actually launch an evaluation process as far as Kings Mountain, the cap structures business again in Q1, we had discussions with the major customer there about their forward plans as well as their volume requirements as they were coming off and extended work, slow down and stoppage due to strikes as well as other supply chain issues of the customer.

所以從一開始到結束，自從我加入以來，這種情況一直在發生，當我們在年初制定初步指導時，我們還沒有意識到交易會在今年發生，我們當時也沒有決定真正啟動對 Kings Mountain 的評估流程，第一季度的上限結構業務，我們與那裡的主要客戶討論了他們的前瞻性計劃以及他們的數量需求，因為他們即將結束工作並延長工作時間，由於罷工而導致的放緩和停工以及客戶的其他供應鏈問題。

During those discussions, we evaluated options for that facility.

在這些討論中，我們評估了該設施的選擇。

Because of the capital requirements in order to meet the future production requirements, as well as the long-term outlook for the models that we're going to be produced in that facility.

因為為了滿足未來的生產需求，我們需要資本，並且要考慮我們將在該工廠生產的車型的長期前景。

We came to an agreement to evaluate what the best option was for that site.

我們達成一致，對該網站的最佳選擇進行評估。

So we started that process at the end of Q1, beginning of Q2, eventually signed an asset purchase agreement.

因此，我們在第一季末、第二季初開始了這項流程，最終簽署了資產購買協議。

We also had an external banker evaluation for the, the asset itself considering the revenue stream and the offer and what we sold it for was within the range of the banker estimate.

我們也對資產本身進行了外部銀行評估，考慮了收入來源和報價，而我們出售的價格也在銀行估計的範圍內。

So, from start to finish, call it Q2 to Q3 that that was completed.

因此，從開始到結束，稱為 Q2 到 Q3，即完成。

And then in Q1, we also evaluated the utilization of our existing plants and with the down year over year expectation in class eight for both 2024 and 2025 we determined that we needed to improve the utilization of some of our underutilized plants.

然後在第一季度，我們還評估了現有工廠的利用率，鑑於 2024 年和 2025 年第八類工廠的利用率預計將同比下降，我們確定需要提高一些未充分利用的工廠的利用率。

And that's when we identified the chop site to move the production to other sites.

就在那時，我們確定了切斷生產地點，以便將生產轉移到其他地點。

It actually moved to four other plants, and we executed the move and the sale in Q3.

它實際上轉移到了其他四家工廠，我們在第三季度執行了搬遷和出售。

So, they all came together, I would say at this point, Joe there no immediate term portfolio adjustments on our horizon.

所以，他們都聚集在一起，我想說，在這一點上，喬，我們的前景中沒有短期投資組合調整。

Once we prove ourselves and establish earnings that meet expectations, and we look at our cash and capital allocation, we most likely will be looking at acquisitions primarily focused in the electrical system space.

一旦我們證明自己並建立符合預期的收益，並且我們審視我們的現金和資本配置，我們很可能會考慮主要集中在電氣系統領域的收購。

But from a divestiture enclosure standpoint, we're pretty much at a point where we're in the phase of stability and now reshaping our margin profile going forward.

但從資產剝離的角度來看，我們基本上處於穩定階段，目前正在重塑我們的利潤率狀況。

So hopefully that answers your question.

希望這能回答你的問題。

Yes.

是的。

Thank you very much for that.

非常感謝。

And last one for me and I'll get back in queue.

這是我的最後一個問題，然後我會回到隊列中。

And if I'm, I'm looking at the revised guidance versus what the first nine months was, it seems to suggest the fourth quarter revenue expectation is somewhere in the 150 to 180 range, but the adjusted EBIDTA negative 2 to 3, a positive.

如果我查看修訂後的指引與前九個月的指引，似乎表明第四季度的收入預期在 150 到 180 之間，但調整後的 EBIDTA 為負 2 到 3，為正值。

We're just wondering, you know, why did the seemingly kind of reduced adjusted EBIDTA outlook there?

我們只是想知道，為什麼調整後的 EBIDTA 前景看似降低？

Yeah.

是的。

So, Joe, you can see Q4 historically is the smallest quarter within the year, given the seasonality and the customer shutdown for holiday.

喬，你可以看到，考慮到季節性和客戶因假期停工，第四季度從歷史上看是一年中最小的一個季度。

So, we expect that the volume would be pretty light.

因此，我們預計交易量會相當少。

So that would be the main driver for our contribution margin as we continue to see the end market going.

因此，隨著我們繼續看到終端市場的發展，這將成為我們貢獻利潤率的主要驅動力。

So, class eight is going to have a small production volume for cast for Q4.

因此，第八班第四季的演員陣容將有少量生產。

And then from that point on, it's going to start to gradually bunding in 25.

從那時起，它將在 25 小時內開始逐漸形成。

That's according to ACT.

這是根據 ACT 的說法。

So that's how we see the end of the year.

這就是我們對今年年底的看法。

So, it is going to be the tough demand environment for us.

因此，對我們來說，這將是嚴峻的需求環境。

But as James mentioned, we will start to see the benefits of all the restructuring and improvement actions going into 2025.

但正如詹姆斯所提到的，到 2025 年，我們將開始看到所有重組和改進行動的好處。

Okay, great.

好的，太好了。

Thank you very much.

非常感謝。

And your next question comes from the line of John Franzreb with Sidoti.

您的下一個問題來自 Sidoti 的 John Franzreb。

Good morning, everyone.

大家早安。

And thanks for taking the questions.

感謝您回答這些問題。

First though 'd like to echo Joe's sentiment that AK filing on the readjusted first two quarters numbers would be helpful.

首先，我想同意喬的觀點，即 AK 對重新調整後的前兩個季度數據進行申報將會有所幫助。

So I think he's on point there.

所以我認為他說得對。

Secondly, regarding the $20 million payment, how much was put down towards debt repayment?

第二，2000萬美元的付款中有多少用於償還債務？

And can you give us a sense of what your current interest rate expenses?

您能告訴我們目前的利率支出是多少嗎？

Yeah.

是的。

So, the majority of the second payment is also used for debt pay down.

因此，第二筆付款的大部分也用於償還債務。

So, and obviously this is inside the corner as every week we have fluctuation and up and down in our revolver.

因此，顯然這是在角落裡，因為每週我們的左輪手槍都會有波動和上下。

But right now, everything that we receive, we primarily put it to use for paying down debt.

但現在，我們收到的所有錢主要用於償還債務。

So, interest expense, we are similar to the past.

因此，利息支出與過去類似。

We were looking at average around the mid-single digit, 7% to 8% is our interest expense.

我們看到平均利息支出在個位數的中間值左右，7%到8%之間。

So, as I mentioned, the interest expense is a little higher than a year ago, but our overall debt balances have been coming down throughout the year.

因此，正如我所提到的，利息支出比一年前略高，但我們的整體債務餘額全年一直在下降。

Fair enough.

很公平。

Thank you, Andy.

謝謝你，安迪。

And regarding your commentary on the AG construction market.

關於您對 AG 建築市場的評論。

You suggested that expectations at the customer level is to be flat year over year.

您認為客戶層面的預期將與去年同期持平。

I just want to make sure I understand that.

我只是想確保我理解這一點。

Is that flat compared to current levels of volume if you will or is that flat based on the total 2024 aggregate kind of a number?

如果您願意的話，與目前的交易量水準相比，這個數字是否持平，或者是否基於 2024 年的總量持平？

Yeah, so John that's a year over year comparison.

是的，約翰，這是同比的比較。

So, it's a total 2024 versus total 2025.

因此，總數是 2024 年，總數是 2025 年。

So clearly there are still a lot of uncertainties out there.

顯然還存在著許多不確定性。

We have many data points that we look at and trying to understand the market is hard to predict the customer indication right now It's pretty flat.

我們查看了許多數據點，並試圖了解市場，但目前很難預測客戶的指示，它相當平穩。

Some sources say that it's going to be slightly increased, and we see some sort of thing.

一些消息來源稱，這一數字將會略有增加，我們也看到了一些跡象。

So, it's still quite volatile here.

所以，這裡仍然很不穩定。

But overall, at this point, our best prediction is about flat and year over year.

但總體而言，目前我們最好的預測是與去年同期持平。

And, and sticking with that market in a weakening market.

並且，在市場疲軟的情況下仍堅守這一市場。

Have you seen any increased competitive pressures in that business?

您是否發現該產業的競爭壓力有所加大？

Yes, we the competitive pressures haven't changed materially.

是的，我們的競爭壓力並沒有實質改變。

We have the same set of competitors that are established with some of the legacy customers.

我們與一些傳統客戶有著相同的競爭對手。

We have given their dynamics as far as capacity utilization.

我們給出了他們的產能利用率動態。

They we have seen what I would consider unsolicited quotes into customers, and we get immediate feedback from customers.

他們，我們看到了我認為是客戶主動提供的報價，並且我們立即得到了客戶的回饋。

But it, I don't see it being an attack on our business.

但我不認為這是對我們業務的攻擊。

We continuously are looking at margin expansion so we can remain competitive and not lose business.

我們不斷尋求利潤率的提高，以便保持競爭力並且不失去業務。

And that's described some of the actions that we've been taking as far as lower cost sites and electrical systems to make sure we don't deteriorate margins while staying price competitive with customers.

這就是我們在降低場地和電氣系統成本方面採取的一些措施，以確保我們的利潤率不會下降，同時保持與客戶的價格競爭力。

So, I wouldn't say it was anything out of the ordinary, but it's pretty much a part of course.

所以，我不會說這有什麼不尋常的，但這當然是其中的一部分。

Understood.

明白了。

And one last question I got back into queue regarding the production inefficiencies from relocating from the two facilities.

我回到隊列中的最後一個問題是關於兩個工廠遷移導致的生產效率低下的問題。

Are you behind that process?

您支持這項進程嗎？

And if not, when will you be?

如果不是，那什麼時候會是？

And I guess lastly, can you quantify the impact that had on close margins in the third quarter?

最後，您能量化這對第三季利潤率的影響嗎？

Thank you.

謝謝。

Yeah.

是的。

So, for continuing operations, we are at the tail end of those inefficiencies, bringing in the new leadership will further accelerate stability and margin expansion at the gross margin level.

因此，對於持續經營而言，我們正處於效率低下的末期，引入新的領導層將進一步加速毛利率的穩定和利潤率的擴大。

The divested assets had a pretty large amount of inefficiencies too, but those are closed and behind us.

剝離的資產也存在相當多的低效率，但這些問題已經被解決並成為過去了。

So, they're not going to repeat.

所以，他們不會重蹈覆轍。

And we also expect the cost structure improvement with the close site overall for vehicle solutions will expand margins there.

我們也預計，隨著車輛解決方案整體站點的緊密聯繫，成本結構的改善將擴大那裡的利潤率。

So, our focus really is on how we fill the new low-cost capacity in electrical systems.

因此，我們的重點實際上是如何填補電力系統中新的​​低成本容量。

And also focus on strategic growth initiatives in electrical systems that are broader, that will broaden the funnel of opportunities that we're going after.

同時也要關注更廣泛的電氣系統的策略性成長計劃，這將拓寬我們追求的機會管道。

As far as quantifying the impact of the gross margin and that's primarily where it was with the inefficiencies with freight and overtime and labor supply chain issues, equipment issues, rigging and moving business and machines.

至於量化毛利率的影響，主要在於貨運和加班以及勞動力供應鏈問題、設備問題、索具和搬運業務以及機器方面的效率低下。

That is in the upper single digits to low double digits, millions on the continual operations.

也就是說，持續營運的成本在個位數高到兩位數低，達數百萬。

So annualized on an annualized basis.

因此以年率計算。

So that's kind of a book in there a range and we don't expect the majority of that to repeat.

因此，這是一本處於一定範圍內的書，我們不希望其中的大部分內容重複。

Okay, thank you, James.

好的，謝謝你，詹姆斯。

I appreciate you taking my questions.

感謝您回答我的問題。

Sure.

當然。

Thank you so much.(Operator instruction)..

非常感謝。

Next question comes from the line of Gary Prestopino of Barrington Research.

下一個問題來自 Barrington Research 的 Gary Prestopino。

Good morning.

早安.

Andy, I know you don't have the pro forma numbers for Q1 and Q2 in terms of a full-blown income statement for each quarter.

安迪，我知道您沒有第一季和第二季的完整損益表的預測數字。

But can you at least give us an idea or, or if you have it, what the revenues were for Q1 and Q2 and the adjusted EBIDTA for both quarters given the doves materials that you've incurred?

但是，您能否至少給我們一個想法，或者，如果您有的話，考慮到您所承擔的鴿子材料，第一季和第二季的收入是多少以及兩個季度的調整後 EBIDTA 是多少？

Yeah, so.

是啊。

Well, so in our queue, so again, you have our first half result.

好吧，在我們的隊列中，再次，您得到了我們上半年的結果。

If I would just give you some high level number, Q1 and Q2 revenues, they are almost the same.

如果我只給你一些大致的數字，那麼第一季和第二季的收入幾乎相同。

So, the first half of the year, you can basically speed it into 50-50.

因此，今年上半年，你基本上可以將其加速到 50-50。

That's all about the same for our EBIDTA number adjusted EBIDTA number.

這與我們的 EBIDTA 數字調整後的 EBIDTA 數字大致相同。

Oh, so, so same for adjusted EBIDTA as well.

哦，所以，調整後的 EBIDTA 也是一樣的。

Right.

正確的。

That's right.

這是正確的。

That's right.

這是正確的。

Okay.

好的。

That helps a little bit.

這有一點幫助。

We are in order to model this correctly, we're going to need to get those numbers.

為了正確地建模，我們需要取得這些數字。

It's that's just how we do things.

這就是我們做事的方式。

So, I'm going to echo what the other analyst said.

因此，我將重複另一位分析師的說法。

Okay.

好的。

In terms of the new leadership changes, these gentlemen seem to be experts in their fields.

就新的領導層變動而言，這些先生似乎都是各自領域的專家。

How long would you say it would take them to get their imprint on the business in terms of when you can start seeing a turn?

就何時能看到轉機而言，您認為他們需要多長時間才能在業務上留下印記？

Is this a 12-month time frame?

這是一個 12 個月的時間框架嗎？

Is it a six-month time frame?

這個時間範圍是六個月嗎？

Just give us an idea as you know, maybe what their priorities are coming in.

只要告訴我們您知道的情況，也許他們的優先事項是什麼。

For sure.

一定。

Thanks.

謝謝。

Thanks for the question, Gary.

謝謝你的提問，加里。

The I'll take them separately.

我會分開服用。

So we hit in flight and the operational efficiencies launched several initiatives to bring stability after many of the footprint moves of portfolio changes.

因此，我們採取了一系列措施來提高營運效率，以便在投資組合發生許多變化之後帶來穩定。

So, we have a number of initiatives that were already in flight.

因此，我們已經實施了一些措施。

The operations and supply chain functions were within the business units.

營運和供應鏈功能屬於業務部門。

So, the business unit leaders were focused on growth customer relations as well as addressing the operational efficiency.

因此，業務部門領導專注於發展客戶關係以及解決營運效率。

So, bringing in Carlos Jimenez who has proven that various companies in his background, transformational acceleration is the main focus and intent.

因此，引入卡洛斯·希門尼斯 (Carlos Jimenez)，他已經在自己的​​背景中證明了多家公司的成功，加速轉型是主要的關注點和意圖。

The operations and supply chain functions will be centralized under his leadership.

營運和供應鏈功能將在他的領導下集中化。

So, we have a more consistent deployment of operational excellence across our sites and also the tools and the processes, the accountability rhythms are going to be standardized.

因此，我們在各個站點都更一致地部署卓越運營，而且工具、流程和問責節奏也將標準化。

So, we have much better visibility focused on leading KPIS versus being reactionary to certain disruptions.

因此，我們對領先的 KPIS 有更好的了解，而不是對某些中斷做出反應。

So, I expect this impact to be immediate as we as we aspire to have stability this quarter.

因此，我預計這種影響將是立竿見影的，因為我們希望本季能實現穩定。

So, when we enter into 2025 our jumper platform of more stable operations and ready for a margin expansion.

因此，當我們進入 2025 年時，我們的跳線平台將具有更穩定的運營，並為擴大利潤做好了準備。

So, some of the one-time cost won't repeat, improve our cost out process, get more standardization and accelerate lien manufacturing processes.

因此，一些一次性成本不會重複，改善我們的成本流程，變得更加標準化並加速留置權製造流程。

So, you know, going into Q1, I expect the impact with them coming into the organization to be felt near term with Peter Lugo in our electrical systems business.

因此，您知道，進入第一季度，我預計他們加入組織後的影響將在短期內顯現，Peter Lugo 將會在我們的電氣系統業務中感受到影響。

This priority is going to be reestablishing our view of where we stand across all the segments we supply into and immediately start to address what our strategic growth initiatives need to be and how they may need to change.

這個優先事項是重新確立我們對所有供應領域立場的看法，並立即開始解決我們的策略成長計畫需要什麼以及它們可能需要如何改變。

I would say since I've been in the role, we have done a really good job of expanding into diverse end markets.

我想說，自從我擔任這個職位以來，我們在擴展到多樣化終端市場方面做得非常出色。

Many of our new wins are lower in volume while increasing the complexity of the customer management of that.

我們的許多新勝利的數量都較低，但同時增加了客戶管理的複雜性。

And in some cases, we share of the business on certain platforms.

在某些情況下，我們會在某些平台上分享業務。

We win new business as we go into new Ems.

當我們進入新的 Ems 時，我們贏得了新業務。

So now that we are in the door, we have to accelerate expansion of share wallet.

所以既然我們已經進入了這個領域，我們就必須加速擴張共享錢包。

Peter has a lot of experience in organic growth initiatives as well as M&A.

Peter 在有機成長計劃以及併購方面擁有豐富的經驗。

So as we stabilize our earnings profile and we deserve the right to go after M&A he's got the background and the view of how to do that successfully from an integration standpoint and also a synergy optimizing synergies from M&A and I would expect again an immediate impact from him reassessing where we are and launching strategic growth initiatives that we should start winning business in a different profile, maybe even at different scale.

因此，當我們穩定獲利狀況並有權進行併購時，他擁有從整合的角度成功實現這一目標的背景和觀點，同時也具備透過併購優化協同效應的能力。

But then also focusing on how we take our existing business and fill the capacity in the lower cost location through some of the launches that are coming up.

但我們也關注如何透過即將推出的一些新業務，利用現有業務來填補低成本地區的產能。

We have a number of launches that are coming online in 2025.

我們將在 2025 年推出多項產品。

That somewhat mitigate some of the downside we see in the end markets, we had some this year.

這在一定程度上減輕了我們今年在終端市場看到的一些不利因素。

But the level of the downside really ate up the impact of the launch of a new business and then importantly the ramp.

但下行幅度確實抵銷了新業務開展以及隨後的成長所帶來的影響。

So as these programs ramp and we further utilize capacity, it gives us a better view of how we can reshape our quote funnel and really focus on product management and portfolio management with the customers.

因此，隨著這些專案的推進和我們進一步利用產能，我們可以更好地了解如何重塑我們的報價管道，並真正專注於客戶的產品管理和投資組合管理。

So we have better traction on winning higher volume business at new customers as well as expenditure wallet at existing customers.

因此，我們在贏得新客戶的大量業務以及現有客戶的支出方面具有更好的吸引力。

Okay.

好的。

As I read this right, and what you said, well, first of all, this may have been asked already, but I just want to make sure are we looking at any more restructuring expenses in Q4 or, or is this really all behind you?

正如我所讀到的，正如你所說的，首先，這個問題可能已經被問過了，但我只是想確保我們是否在考慮第四季度的更多重組費用，或者，這一切真的都已經過去了嗎？

So, I would say that is largely behind us.

所以我想說這基本上已經成為過去了。

As James mentioned, portfolio actions are completed, we obviously constantly adjusting our footprint and our workforce depends on the demand that we are seeing.

正如詹姆斯所提到的，投資組合行動已經完成，我們顯然不斷調整我們的足跡，我們的勞動力取決於我們所看到的需求。

So, as I mentioned, there's still a lot of uncertainties and we're not going to stop until we rightsize our workforce.

所以，正如我所提到的，仍然存在著許多不確定性，我們不會停下來，直到我們調整勞動力規模。

But I will also add that in my comments about overall enterprise cost structure.

但我還將在整體企業成本結構的評論中補充這一點。

So now that all the strategic actions, portfolio actions are behind us, we are in a position to further optimize, organize ourselves in a better way so that we find more efficiency that will be continuing throughout the rest of the year and hopefully give us a heads up mix up here in 2025 for margin expansion.

因此，現在所有策略行動和投資組合行動都已完成，我們可以進一步優化，以更好的方式組織自己，以便找到更高的效率，並將在今年剩餘時間內繼續保持這種效率，並希望在 2025 年為我們的利潤率擴大提供參考。

That's what we are planning on and we're working on right now.

這就是我們的計劃，我們正在為此努力。

Okay.

好的。

And then as I read what you've done here with bringing in Carlos Jimenez, it seems like you're really taking the operating model refinement for lack of a better word out of the core leadership of each individual business that you have and it's going to be umbrella under what he's going to do. is that a correct assumption?

然後，當我讀到您引入卡洛斯·希門尼斯 (Carlos Jimenez) 所做的事情時，似乎您實際上是在從您擁有的每個業務的核心領導層中採取運營模式改進（因為沒有更好的詞來形容），而這將成為他將要做的事情的保護傘。這是一個正確的假設嗎？

Yes, it is.

是的。

Okay.

好的。

So how, how will this gentleman operate?

那麼這位先生將如何行動呢？

I mean, does he come with the team?

我的意思是，他會和球隊一起來嗎？

Do you use existing people?

您使用現有的人員嗎？

Are there are his people down at, you know, at every one of these plants reporting back to him and, and he setting up you know, meetings, setting metrics for each of these or these businesses to hit.

你知道，在每一個工廠裡都有他的員工向他報告，他是否安排會議，為每個企業設定要達到的指標。

How does this all work?

這一切是如何運作的？

Yeah, it's a I guess in simplest, in simple terms, it's going to be a combination of bringing in outside talent to top grade where we have deficiencies and capability or competency and also continuing to develop existing resources that have a runway and bandwidth to expand their capability and competency.

是的，我想最簡單的來說，這將是引進外部人才來彌補我們的不足和能力，同時繼續開發現有資源，這些資源有跑道和頻寬來擴展他們的能力和競爭力。

So that's going to be a combination effort of some of the operational inefficiencies that we refer to throughout this presentation and also the priorities call where expenses related to consultants and subject matter experts that we brought in to help in our operations.

因此，這將是我們在整個演示中提到的一些營運效率低下以及優先事項的綜合努力，這些優先事項涉及我們為幫助我們的營運而聘請的顧問和主題專家的費用。

They brought some good tools and processes, accountability, processes, operating rhythms that we just need to further refine and deploy consistently across the operations.

他們帶來了一些很好的工具和流程、責任、流程和營運節奏，我們只需要進一步完善並在整個營運過程中一致部署這些內容。

There will be a direct report from plant managers and supply chain districts, etcetera, into Carlos directly with a service model to the business unit leaders.

工廠經理、供應鏈區等將直接向卡洛斯匯報，並透過服務模式向業務部門領導報告。

So, the margin profile, the cost savings year over year, the quality and delivery metrics that our customers expect will be the those will be the requirements that Carlos and his team have to meet and have a plan to meet.

因此，利潤狀況、逐年的成本節省、客戶期望的品質和交付指標將是卡洛斯和他的團隊必須滿足的要求，並製定計劃。

And again, this is in an effort to be more customer focused, but also just rightfully take what we're entitled to from a margin standpoint between leakage and inefficiencies we're entitled to a much better margin.

再次強調，這是為了更加以客戶為中心，但也正是從利潤的角度，在洩漏和低效率之間，我們有權獲得更高的利潤。

So, he's going to have and as well as a direct reporting to myself, our operating rhythms are going to continue to be daily and weekly cadence until we achieve stability and then it'll go to weekly to monthly.

因此，除了直接向我報告外，他還會繼續以每日和每週的節奏開展運營，直到實現穩定，然後再改為每週或每月。

But we're currently and have been since the middle of Q3 and the daily operating cadence over things that are going on in the business trying to get ahead and stay ahead.

但目前，以及自第三季中期以來，我們一直在關注業務中的日常營運節奏，力爭取得領先並保持領先地位。

And this is the next step of maturity in that process with him coming on board.

隨著他的加入，這一進程邁出了成熟的下一步。

Okay.

好的。

Thank you very much.

非常感謝。

Thank you so much.

太感謝了。

And your next question comes from the line of Steven Martin of Slater.

您的下一個問題來自斯萊特的史蒂文馬丁 (Steven Martin)。

Yeah, guys, you know, I'm so tired of these calls.

是的，夥計們，你們知道，我對這些電話感到厭倦。

You know, there isn't one part of your business that is functioning properly and you have the audacity to talk about acquisitions.

你知道，你的業務中沒有一個部分運作正常，但你卻厚顏無恥地談論收購。

You should be talking about who to sell the company to instead of trying to improve or show that you can improve something you haven't improved anything in three years, you've probably had one or two up quarters.

你應該討論把公司賣給誰，而不是試圖改進或表明你可以改進某些東西，你三年來都沒有改進任何東西，你可能有一兩個季度的增長。

Every quarter i hear about all these initiatives aftermarket was going to be the new panacea and it's nothing.

每個季度我都會聽到關於售後市場這些舉措將成為新的靈丹妙藥的消息，但事實並非如此。

You were restructuring all your contracts and you're still down, you know, electrical systems was going to be the new growth vehicle and the margins are lower and the growth is lower.

您正在重組所有合同，但結果仍然不佳，您知道，電氣系統將成為新的成長動力，但利潤率較低，成長率也較低。

How do you with a straight face, look at yourself and address us shareholders and then have the audacity to talk about looking for acquisitions.

您如何能一本正經地看著自己，向我們股東發表講話，然後大膽地談論尋求收購。

You can't run your existing business.

您無法經營現有的業務。

That's not even questions, that's just a statement.

這甚至不是問題，這只是一個陳述。

I understand that.

我明白。

And if you recall my comments, I said that when we achieve stability and we get to a point where we have margin expansion and beat expectations and we're properly positioned from a capital allocation standpoint at that time, we will look at potential acquisitions.

如果你還記得我的評論，我說過，當我們實現穩定，利潤率擴大並超出預期，而且從資本配置的角度看，我們處於正確的位置時，我們就會考慮潛在的收購。

Okay.

好的。

Here's the question.

問題如下。

When do you expect your first up quarter on an operating profit basis?

您預計第一季的營業利潤何時會上升？

We haven't provided guidance at this point, but I would expect in 2025 in what I aspire to be is before the first half is done.

我們目前還沒有提供指導，但我預計 2025 年上半年前就能實現我的期望。

And if everything comes into play like we plan I expected in the first half.

如果一切都按照我們計劃的那樣進行，那麼我在上半場就預料到了。

Okay.

好的。

I hope so, because the stock can't go much lower.

我希望如此，因為股價不可能再跌太多了。

Thank you.

謝謝。

Thank you so much.

太感謝了。

(Operator instruction).

（操作員指令）。

Okay, I think we're, yeah, we're ready to close the call.

好的，我想我們可以結束通話了。

So, I want to thank everyone for joining today's call.

因此，我要感謝大家參加今天的電話會議。

We appreciate your feedback, your insight, your perspective and your curiosity as to how things are going to continue to move forward while we're not satisfied with our recent performance.

我們感謝您的回饋、洞察力、觀點和好奇心，想知道在我們對最近的表現不滿意的情況下，事情將如何繼續發展。

We're taking necessary actions as we talked about on the call to enable CVG to be a growing more profitable business going forward.

正如我們在電話會議上談到的那樣，我們正在採取必要的行動，以使 CVG 未來成為一家不斷成長、獲利能力更強的企業。

We also look forward to reshaping CVG to be a better partner of choice for our customers.

我們也期待重塑 CVG，使其成為客戶更好的首選合作夥伴。

And very importantly the best choice for our investors and shareholders as we continue to improve this business model and our performance.

非常重要的是，隨著我們繼續改善這項商業模式和業績，這對我們的投資者和股東來說是最好的選擇。

So, thanks again, appreciate your engagement and we look forward to keeping you up to date on the progress we make.

因此，再次感謝您的參與，我們期待隨時向您通報我們所取得的進展。

Have a good day.

祝你有美好的一天。

Thank you, presenters and thank you, ladies and gentlemen, this includes today's conference call.

謝謝各位演講者，謝謝各位女士們、先生們，這包括今天的電話會議。

Thank you for participation and you may now disconnect.

感謝您的參與，您現在可以斷開連接。

Have a great day.

祝你有美好的一天。