Donaldson Company Inc (DCI) 2024 Q1 法說會逐字稿

Good morning, and welcome to the Donaldson Fiscal First Quarter 2024 Earnings Call. Please note that this call is being recorded. (Operator Instructions)

早安，歡迎參加唐納森 2024 年第一季財報電話會議。請注意，此通話正在錄音。 （操作員說明）

I will now turn the call over to Sarika Dhadwal, Head of Investor Relations. Please go ahead.

我現在將把電話轉給投資者關係主管 Sarika Dhadwal。請繼續。

Good morning. Thank you for joining Donaldson's First Quarter Fiscal 2024 Earnings Conference Call. With me today are Tod Carpenter, Chairman, CEO and President; and Scott Robinson, Chief Financial Officer. This morning, Tod and Scott will provide a summary of our first quarter performance and details on our outlook for fiscal 2024.

早安.感謝您參加唐納森 2024 財年第一季財報電話會議。今天與我在一起的有董事長、執行長兼總裁 Tod Carpenter；和首席財務官斯科特羅賓遜。今天早上，托德和斯科特將提供我們第一季業績的總結以及我們對 2024 財年展望的詳細資訊。

During today's call, we will discuss non-GAAP or adjusted results. In the prior year period, first quarter fiscal 2023 non-GAAP results exclude restructuring and other charges of $7.6 million. A reconciliation of GAAP to non-GAAP metrics is provided within the schedules attached to this morning's press release. Additionally, please keep in mind that any forward-looking statements made during this call are subject to risks and uncertainties, which are described in our press release and SEC filings.

在今天的電話會議中，我們將討論非公認會計原則或調整後的結果。去年同期，2023 財年第一季非 GAAP 業績不包括 760 萬美元的重組和其他費用。今天早上新聞稿所附的時間表中提供了 GAAP 與非 GAAP 指標的調整表。此外，請記住，本次電話會議期間做出的任何前瞻性陳述都受到風險和不確定性的影響，這些風險和不確定性已在我們的新聞稿和 SEC 文件中進行了描述。

With that, I'll now turn the call over to Tod Carpenter.

現在，我將把電話轉給托德·卡彭特。

Thanks, Sarika. Good morning, everyone. I am pleased to report our first quarter earnings results, which demonstrate our continued ability to deliver to our customers and shareholders despite overhanging macro uncertainty. This quarter, we reported consolidated gross margin at nearly a decade high, driven by our team's efforts on strategic pricing, deflation in select input costs, mix benefits and plant productivity. We focused on executing in and growing each of our three operating segments and laid the groundwork for a record fiscal 2024.

謝謝，薩里卡。大家，早安。我很高興地報告我們第一季的獲利結果，這表明儘管宏觀不確定性懸而未決，我們仍然有能力為客戶和股東提供服務。本季度，我們的綜合毛利率達到近十年來的最高水平，這得益於我們團隊在策略定價、選擇投入成本下降、組合效益和工廠生產力方面的努力。我們專注於三個營運部門的執行和發展，為創紀錄的 2024 財年奠定了基礎。

In Mobile Solutions, despite volume weakness from softer end market conditions, we delivered strong profit margins driven by strategic pricing, select input cost deflation, mix benefits and strong plant performance. Our Industrial Solutions business continues to outperform from a top and bottom line perspective. Our create, connect, replace service business model has allowed us to first create high-quality, first-fit solutions through innovation and the addition of connected features.

在行動解決方案方面，儘管終端市場狀況疲軟導致銷量疲軟，但在策略定價、選擇投入成本通貨緊縮、組合效益和強勁的工廠業績的推動下，我們實現了強勁的利潤率。從收入和利潤的角度來看，我們的工業解決方案業務持續表現出色。我們的創建、連接、替換服務業務模式使我們能夠首先透過創新和添加連接功能來創建高品質、最適合的解決方案。

Second, connect solutions through next-generation gateways and controllers. In fiscal 2023, aftermarket sales growth from connected customers outpaced that of non-connected industrial customers and we launched the connected model in India, Thailand and China. While we're in the early innings, as of the first quarter, we have seen strong growth in the new connections as compared to prior year.

其次，透過下一代網關和控制器連接解決方案。 2023 財年，互聯客戶的售後市場銷售成長超過了非互聯工業客戶，我們在印度、泰國和中國推出了互聯模式。雖然我們還處於第一季的早期階段，但與去年相比，我們已經看到新連接的強勁成長。

Lastly, we are replacing and servicing equipment through our one-stop shop approach and service capabilities across the full range of Industrial Solutions businesses. Overall, we are gaining market share in industrial as we penetrate key end markets and expand geographically. For example, our Power Generation business drove results this quarter as we benefited from recent customer wins, including large urban projects in Asia and the Middle East. Aerospace and Defense also had a strong quarter, and we've increased our outlook for the year, which Scott will discuss later as wins in cabin air filtration, including a major OEM win positively impact results.

最後，我們透過整個工業解決方案業務的一站式服務方法和服務能力來更換和維修設備。總體而言，隨著我們滲透到關鍵終端市場並擴大地理範圍，我們正在贏得工業市場份額。例如，我們的發電業務推動了本季的業績成長，因為我們受益於最近贏得的客戶，包括亞洲和中東的大型城市專案。航空航天和國防也有一個強勁的季度，我們提高了對今年的展望，斯科特稍後將討論機艙空氣過濾方面的勝利，包括主要 OEM 的勝利對業績產生積極影響。

In Life Sciences, as expected, we saw sequential improvement in our operating performance. We continue to invest and build the foundation needed to gain share in these highly attractive, high-margin markets by leveraging our competitive strengths and global reach and our pipeline of opportunities is growing.

在生命科學領域，正如預期的那樣，我們的營運績效連續改善。我們繼續投資並建立必要的基礎，利用我們的競爭優勢和全球影響力，在這些極具吸引力、高利潤的市場中獲得份額，我們的機會管道正在不斷增長。

Now I'll cover some consolidated highlights. Sales of $846 million were flat year-over-year as volume declines were offset by pricing benefits. Currency was also a slight tailwind. Volumes were negatively impacted by OEM aftermarket destocking, off-road end market weakness and continued pressure in disk drive. Conversely, pricing remained a benefit as we added value for our customers and strategically offset ongoing inflationary pressures such as labor rates and energy costs. EPS in the quarter was $0.75, flat to prior year as gross margin gains and favorability in other income were offset by investments in strategically important growth areas, including our Life Science business.

現在我將介紹一些綜合要點。銷售額為 8.46 億美元，與去年同期持平，銷售下降被定價優勢所抵銷。貨幣也是一個輕微的推動因素。銷售量受到 OEM 售後市場去庫存、越野終端市場疲軟以及磁碟機持續壓力的負面影響。相反，定價仍然是一個優勢，因為我們為客戶增加了價值，並策略性地抵消了勞動力價格和能源成本等持續的通膨壓力。本季每股收益為 0.75 美元，與上年持平，因為毛利率成長和其他收入的優惠被對具有戰略意義的成長領域（包括我們的生命科學業務）的投資所抵消。

One of the highlights this quarter was the strength and resiliency of our best-in-class operations, one of Donaldson's key competitive advantages. As always, our focus remains on working down our backlogs and improving our fill rates and on-time delivery rates. As supply chain conditions have improved, we have been able to return to the company's longstanding focus on operational excellence and effective cost management. While we execute today, we continue to invest for the future through our CapEx and R&D investments.

本季的亮點之一是我們一流營運的實力和彈性，這是唐納森的主要競爭優勢之一。一如既往，我們的重點仍然是減少積壓訂單並提高填充率和準時交貨率。隨著供應鏈狀況的改善，我們能夠回歸公司長期以來對卓越營運和有效成本管理的關注。在我們今天執行的同時，我們繼續透過資本支出和研發投資為未來進行投資。

With respect to CapEx, while capacity investments continue to be the largest portion as we prepare for future profitable growth, we are also focused on cost reduction initiatives and the further commercialization of our Life Sciences acquisitions. Our strong cash flow generation, combined with the strength of our balance sheet, allows us to continue these exciting investments and drive towards our long-term strategic objectives.

就資本支出而言，雖然產能投資仍然是我們為未來獲利成長做準備的最大部分，但我們也專注於降低成本措施和生命科學收購的進一步商業化。我們強大的現金流產生能力，加上我們的資產負債表的實力，使我們能夠繼續這些令人興奮的投資，並推動實現我們的長期策略目標。

Now I'll provide some detail on first quarter sales. Total company sales were $846 million, essentially flat to prior year. Pricing was an approximate 3% benefit. In Mobile Solutions, total sales were $540 million, a 3% decline versus 2023. Pricing added 3%. Within the mobile segment, performance continued to be mixed. Off-Road sales of $95 million were down 9% due to weakening end market conditions, including in China and the agriculture markets within the Americas and India. Aftermarket sales of $408 million were down 2% year-over-year, driven entirely by the OEM channel. As anticipated, destocking from OEM customers continued in response to normalizing global supply chain conditions. That said, we are now starting to see a stabilization in order patterns and believe the destocking is largely behind us.

現在我將提供有關第一季銷售的一些詳細資訊。該公司總銷售額為 8.46 億美元，與去年基本持平。定價約有 3% 的折扣。行動解決方案領域的總銷售額為 5.4 億美元，比 2023 年下降 3%。定價上漲 3%。在移動領域，業績持續參差不齊。由於終端市場狀況疲軟，包括中國以及美洲和印度的農業市場，越野銷售額下降了 9%，為 9,500 萬美元。售後市場銷售額為 4.08 億美元，年減 2%，這完全是由 OEM 通路推動的。正如預期的那樣，為應對全球供應鏈狀況正常化，OEM 客戶繼續減少庫存。也就是說，我們現在開始看到訂單模式趨於穩定，並相信去庫存基本上已經過去。

In our independent aftermarket channel, sales increased 3% year-over-year. Sales in our On-Road first-fit business of $38 million grew 5%, driven by elevated levels of on-highway equipment production, particularly in China.

在我們的獨立售後市場通路中，銷售額年增 3%。在公路設備生產水準提高（尤其是在中國）的推動下，我們的公路首次安裝業務銷售額成長了 5%，達到 3,800 萬美元。

Now I will touch on China as a whole within Mobile Solutions as it continues to be an important market for us. Sales declined 14% versus 2023 and declined 11% in constant currency. Conditions within the country continue to be very challenging given the weak broader market conditions, particularly with respect to Off-Road. Despite this, our long-term view remains positive given the market size and our opportunities to gain share.

現在我將在行動解決方案中談論整個中國，因為它仍然是我們的重要市場。銷售額較 2023 年下降 14%，以固定匯率計算下降 11%。鑑於整體市場狀況疲軟，該國國內的情況仍然非常具有挑戰性，特別是在越野方面。儘管如此，考慮到市場規模和我們獲得份額的機會，我們的長期觀點仍然樂觀。

Turning to the Industrial Solutions segment. The Industrial segment had another robust quarter as sales increased 7% to $246 million. Pricing added 2%. Industrial Filtration Solutions, or IFS, sales grew 7% to $211 million, driven by strong dust collection and Power Generation sales. Aerospace and Defense sales rose 6% due to another quarter of Defense sales strength.

轉向工業解決方案部分。工業部門的季度業績再次強勁，銷售額成長 7%，達到 2.46 億美元。定價增加了 2%。在強勁的除塵和發電銷售的推動下，工業過濾解決方案 (IFS) 銷售額成長 7%，達到 2.11 億美元。由於國防銷售又一個季度強勁，航空航太和國防銷售額成長了 6%。

On the Life Sciences segment, Life Sciences sales were $60 million, a 4% year-over-year decrease driven primarily by anticipated ongoing disk drive market weakness. We are seeing early signs of a slow demand recovery and expect a sequential improvement in disk drive sales through fiscal 2024 as data center and cloud computing demand recovers. Along with growing our legacy Life Sciences businesses, including food and beverage, we are focused on scaling our acquisitions and look forward to detailing how these are contributing to our growth in the quarters to come.

在生命科學領域，生命科學銷售額為 6,000 萬美元，年減 4%，主要是由於預期磁碟機市場持續疲軟。我們看到需求復甦緩慢的早期跡象，並預計隨著資料中心和雲端運算需求的復甦，到 2024 財年磁碟機銷售將連續改善。在發展我們的傳統生命科學業務（包括食品和飲料）的同時，我們也專注於擴大收購規模，並期待詳細說明這些業務如何為我們未來幾季的成長做出貢獻。

As we close the first quarter of the year, I am proud of our hard-working Donaldson employees around the globe. I'm continually impressed with their dedication to our customers, their fellow employees and to our mission of advancing filtration for a cleaner world. Through our ongoing efforts, we are well poised to deliver value to all of our stakeholders in fiscal 2024. As such, for the full year, our outlook is unchanged as we forecast total sales, operating margin and earnings at all-time high levels.

在今年第一季即將結束之際，我為全球辛勤工作的唐納森員工感到自豪。他們對我們的客戶、同事以及我們推進過濾以創造更清潔世界的使命的奉獻精神一直給我留下了深刻的印象。透過我們不斷的努力，我們已做好準備在2024 財年為所有利害關係人創造價值。因此，對於全年而言，我們的前景保持不變，因為我們預測總銷售額、營業利潤率和收益將達到歷史最高水準。

Now I'll turn it over to Scott, who will provide more details on the financials and our outlook for fiscal '24. Scott?

現在我將把它交給斯科特，他將提供有關財務狀況和我們對 24 財年前景的更多詳細資訊。史考特？

Thanks, Tod. Good morning, everyone. Our first quarter results serve as a solid foundation for us to build upon throughout fiscal 2024 and beyond. I would like to thank our outstanding global teams. I am so impressed by and proud of the way they once again came together, executed and delivered solid results. Donaldson has the right people and strategy in place to drive the company towards our fiscal 2026 financial and strategic targets.

謝謝，托德。大家，早安。我們第一季的業績為我們在 2024 財年及以後的發展奠定了堅實的基礎。我要感謝我們傑出的全球團隊。他們再次齊心協力、執行並取得紮實成果的方式給我留下了深刻的印象並感到自豪。唐納森擁有合適的人員和策略來推動公司實現 2026 財年財務和策略目標。

I will provide color on our outlook for fiscal 2024 in a few minutes, but first we'll give additional details on the results for the first quarter. In summary, sales were flat versus 2023, operating income decreased 2% from the prior year, largely driven by ongoing investments in the Life Sciences segment and EPS of $0.75 was flat year-over-year on a comparable basis. Gross margin was 35.6%, a 170 basis point improvement versus the prior year. Pricing was the largest driver of the improvement, followed by benefits of deflation of freight and select material costs and mix.

我將在幾分鐘內提供我們對 2024 財年的展望，但首先我們將提供有關第一季業績的更多詳細資訊。總而言之，銷售額與 2023 年持平，營業收入比上年下降 2%，這主要是由於生命科學領域的持續投資推動的，每股收益 0.75 美元，在可比基礎上與去年同期持平。毛利率為 35.6%，較上年提高 170 個基點。定價是改善的最大驅動力，其次是貨運通貨緊縮以及精選材料成本和組合的好處。

Operating expenses as a percent of sales were 20.8% compared with 18.9% a year ago. The deleveraging of operating expense in the quarter was due to increased hiring related expenses and notably, nearly half of deleveraging continues to be from incremental expenses related to the scaling of our Life Sciences acquisitions. Operating margin was 14.7%, down 30 basis points versus 2023 as operating expense deleveraging more than offset the year-over-year increase in gross margin.

營運費用佔銷售額的百分比為 20.8%，去年同期為 18.9%。本季營運費用的去槓桿化是由於招聘相關費用的增加，值得注意的是，近一半的去槓桿化仍然來自與擴大生命科學收購規模相關的增量費用。營業利益率為 14.7%，比 2023 年下降 30 個基點，因為營業費用去槓桿化抵消了毛利率的同比增長。

Now I'll discuss segment profitability. Mobile Solutions pretax profit margin was 17.1%, up 260 basis points year-over-year, driven by gross margin expansion, resulting in large part by pricing and deflation of select input costs. Also, as Tod mentioned earlier, mix and strong plant productivity contributed.

現在我將討論細分市場的獲利能力。行動解決方案的稅前利潤率為 17.1%，年增 260 個基點，這主要得益於毛利率擴張，這在很大程度上是由於定價和精選投入成本的緊縮造成的。此外，正如托德之前提到的，混合和強大的工廠生產力也做出了貢獻。

Industrial Solutions pretax profit margin was 17.6%, up 120 basis points as a result of leverage on higher sales. Life Sciences pretax loss was approximately $4 million, including a headwind from acquisitions of roughly $11 million. Pretax profit margin was minus 7% versus minus 12.4% in the fourth quarter and compared to 17.2% a year ago. Incremental investments in our acquisitions continue to negatively impact results. However, through our commitment to long-term profitable growth, we are investing for the future and look forward to seeing these businesses scale.

由於銷售額增加，工業解決方案公司的稅前利潤率成長了 120 個基點，達到 17.6%。生命科學稅前虧損約 400 萬美元，其中包括約 1,100 萬美元的收購阻力。稅前利潤率為-7%，而第四季為-12.4%，去年同期為17.2%。我們收購的增量投資持續對業績產生負面影響。然而，透過我們對長期獲利成長的承諾，我們正在為未來進行投資，並期待看到這些業務規模擴大。

Turning to a few balance sheet and cash flow statement highlights. First quarter capital expenditures were approximately $23 million. Cash conversion in the quarter was 125% versus 97% in 2023. Conversion was above average, driven by operating performance and focused working capital management.

轉向一些資產負債表和現金流量表的亮點。第一季資本支出約 2,300 萬美元。本季現金轉換率為 125%，而 2023 年為 97%。在營運績效和重點營運資本管理的推動下，現金轉換率高於平均水準。

In terms of other capital deployment, we returned approximately $84 million to shareholders inclusive of $30 million in the form of dividends and $54 million in share repurchases. Importantly, earlier this month, Donaldson's Board of Directors authorized a new share repurchase program, which replaces the previous plan. The new plan allows for the repurchase of up to 12 million shares of common stock or approximately 10% of shares outstanding. Our strong cash flow generation and disciplined capital deployment allows us to maintain a healthy balance sheet. Our net debt-to-EBITDA ratio was 0.7x at the end of the quarter.

在其他資本配置方面，我們向股東返還了約 8,400 萬美元，其中包括 3,000 萬美元的股息和 5,400 萬美元的股票回購。重要的是，本月早些時候，唐納森董事會批准了一項新的股票回購計劃，取代了先前的計劃。新計劃允許回購最多 1,200 萬股普通股，約 10% 的已發行股票。我們強大的現金流產生和嚴格的資本配置使我們能夠保持健康的資產負債表。截至本季末，我們的淨負債與 EBITDA 比率為 0.7 倍。

Now moving to our fiscal '24 outlook. First on sales. We continue to expect full year total sales to increase between 3% and 7%, which includes pricing of approximately 2% and currency translation benefit of about 1%. For Mobile Solutions, we are forecasting a sales increase of between 1% to 5%, consistent with our previous expectations. Within Mobile, we now expect Off-Road sales to be down mid-single digits versus our previous expectation of up low single digits as end market conditions, particularly in China and the agriculture markets within the Americas and India have softened.

現在轉向我們的 24 財年展望。首先是銷售。我們繼續預計全年總銷售額將成長 3% 至 7%，其中包括約 2% 的定價和約 1% 的貨幣換算收益。對於行動解決方案，我們預期銷售額將成長 1% 至 5%，與我們先前的預期一致。在行動領域，我們現在預計越野銷量將下降中個位數，而我們先前的預期是低個位數成長，因為終端市場狀況，特別是在中國以及美洲和印度的農業市場已經疲軟。

On-Road sales are forecast to be flat versus up low single digits previously due to weaker-than-expected on-highway vehicle production. Our outlook for the aftermarket is unchanged. Strategic pricing benefits and market share gains are expected to drive mid-single-digit growth over prior year.

由於公路車輛產量弱於預期，公路銷售量預計將持平，而先前的增幅僅為低個位數。我們對售後市場的前景沒有改變。策略定價優勢和市場份額成長預計將推動上年實現中個位數成長。

For Industrial Solutions, sales are expected to increase between 3% and 7%, in line with our previous guidance. IFS sales are forecasted to grow mid-single digits as strong overall demand and market share gains in dust collection and Power Generation drive results. Aerospace and Defense sales are projected to increase mid-single digits, an improvement from the previous negative low single-digits expectation, due to robust end market conditions and market share gains.

對於工業解決方案，銷售額預計將成長 3% 至 7%，與我們先前的指導一致。由於除塵和發電領域強勁的整體需求和市場份額的成長，預計 IFS 銷售額將實現中個位數成長。由於強勁的終端市場狀況和市場份額的成長，航空航太和國防銷售額預計將成長中個位數，較先前的低個位數預期有所改善。

In Life Sciences, our sales and profitability expectations for the year are unchanged. We are forecasting sales growth of approximately 20%, driven by geographic expansion in food and beverage, the scaling and maturation of our bioprocessing equipment and consumables businesses and a return to growth in the disk drive business. We expect full year fiscal 2024 Life Sciences pretax profit margin to be positive and are committed to our longer-term Life Sciences Investor Day targets.

在生命科學領域，我們今年的銷售額和獲利能力預期保持不變。我們預計銷售額將成長約 20%，這主要得益於食品和飲料的地理擴張、生物加工設備和消耗品業務的規模化和成熟度以及磁碟機業務的恢復成長。我們預期生命科學 2024 財年全年稅前利潤率為正，並致力於實現生命科學投資者日的長期目標。

Consistent with our previous guidance, total company operating margin is expected to be within a range of between 14.7% and 15.3%, which at the midpoint, is a 40 basis point year-over-year improvement from adjusted operating margin of 14.6% in fiscal 2023. Year-over-year gross margin expansion is expected to be the driver of the improvement.

與我們先前的指引一致，公司總營業利潤率預計將在 14.7% 至 15.3% 之間，其中值較上財年調整後營業利潤率 14.6% 同比提高 40 個基點。2023 年。毛利率同比增長預計將成為改善的動力。

Touching on gross margin cadence for the balance of the year, our first quarter performance was very strong. As we look to the remaining quarters, we expect year-over-year gross margin expansion, however, will likely see a sequential step down, particularly in the second quarter due to typical seasonality and a slight moderation in pricing benefits versus the prior year. For the full year, higher operating expenses as a rate of sales are forecast to partially offset gross margin strength. It's worth highlighting once again that our operating margin guidance represents a record for Donaldson, and we are particularly proud of this given our ongoing commitment to investing for the future, including in our Life Sciences segment.

談到今年剩下的毛利率節奏，我們第一季的表現非常強勁。然而，當我們展望剩餘季度時，我們預計毛利率同比擴張可能會出現連續下降，特別是在第二季度，因為典型的季節性因素以及定價效益與前一年相比略有放緩。就全年而言，營業費用佔銷售額的上升預計將部分抵消毛利率的強勁。值得再次強調的是，我們的營業利潤指導代表了唐納森的記錄，鑑於我們對未來投資（包括生命科學領域）的持續承諾，我們對此感到特別自豪。

In terms of EPS, we are reaffirming our guidance of a range between $3.14 and $3.30, up from $3.04 in fiscal 2023. In summary, we are committed to delivering higher levels of profitability and higher levels of sales to our shareholders in fiscal 2024 and beyond.

就每股收益而言，我們重申我們的指導範圍為3.14 美元至3.30 美元，高於2023 財年的3.04 美元。總之，我們致力於在2024 財年及以後為股東提供更高水平的盈利能力和更高水準的銷售額。

Now on to our balance sheet and cash flow outlook. Cash conversion is expected to be in the range of 95% to 105% above our historical averages. Our capital expenditures forecast of $95 million to $115 million is heavily weighted towards growth initiatives in all three segments. In terms of other capital deployment priorities, our strategy has not changed. We continue to focus on reinvesting back into the company through strategic acquisitions and are committed to returning value to our shareholders through dividends and share repurchases.

現在談談我們的資產負債表和現金流前景。現金轉換預計將比我們的歷史平均值高出 95% 至 105%。我們的資本支出預測為 9,500 萬至 1.15 億美元，主要專注於所有三個細分市場的成長舉措。在其他資本配置重點方面，我們的策略並沒有改變。我們繼續專注於透過策略性收購對公司進行再投資，並致力於透過股利和股票回購為股東回報價值。

Now I'll turn the call back to Tod.

現在我將把電話轉回托德。

Thanks, Scott. As we look to the remainder of the year and beyond, we are focused on continuing to invest and execute on our long-term strategic initiatives, all aimed at building upon our position as the leader in technology-led filtration. We are confident in our balanced growth strategy and in the fiscal 2026 financial targets we laid out at Investor Day.

謝謝，斯科特。展望今年剩餘時間及以後，我們將專注於繼續投資和執行我們的長期戰略計劃，所有這些都旨在鞏固我們作為技術主導過濾領域的領導者的地位。我們對平衡成長策略以及我們在投資者日制定的 2026 財年財務目標充滿信心。

Our organic growth continues to be fueled by our R&D investments, which we expect to increase more than 20% this year. With respect to our inorganic growth, we are integrating and working to scale our Life Sciences and services acquisitions and our healthy balance sheet continues to afford us significant flexibility in pursuing additional strategic M&A in those areas.

我們的研發投資持續推動我們的有機成長，預計今年將成長 20% 以上。就我們的無機成長而言，我們正在整合並努力擴大我們的生命科學和服務收購規模，我們健康的資產負債表繼續為我們在這些領域尋求額外的策略併購提供了巨大的靈活性。

Our purpose of advancing filtration for a cleaner world is at the forefront of our growth and everything we do. Importantly, this purpose serves as the foundation for our sustainability strategy. And through our company principles, we continue to work towards delivering on our 2030 ESG ambitions. These principles include: one, operate sustainably. We're working every day to do our part to help mitigate impacts from climate change. Two, operate safely. We aim to provide safe and healthy workplaces for our global employees. Three, engage and empower employees. We are dedicated to advancing opportunity and equity at Donaldson. And four, enrich our communities. We continue to prioritize our commitments to positively impacting our communities with charitable giving through the Donaldson Foundation.

我們的目標是推進過濾，創造一個更乾淨的世界，這是我們發展和所做一切的首要目標。重要的是，這個目標是我們永續發展策略的基礎。透過我們的公司原則，我們繼續努力實現 2030 年 ESG 目標。這些原則包括：一、永續經營。我們每天都在努力盡自己的一份力量，幫助減輕氣候變遷的影響。二、安全運轉。我們的目標是為全球員工提供安全健康的工作場所。第三，調動員工積極性並賦予員工權力。我們致力於促進唐納森的機會和公平。第四，豐富我們的社區。我們繼續優先致力於透過唐納森基金會的慈善捐贈對我們的社區產生積極影響。

In closing, I would like to thank the entire Donaldson team. Through their demonstrated agility, ability to operate in any environment and dedication, we have and will continue to return value to all our stakeholders.

最後，我要感謝整個唐納森團隊。憑藉他們所表現出的敏捷性、在任何環境下運作的能力和奉獻精神，我們已經並將繼續為所有利害關係人回報價值。

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

這樣，我現在將把電話轉回接線員以打開提問線路。

(Operator Instructions). Your first question comes from Bryan Blair with Oppenheimer.

（操作員說明）。你的第一個問題來自布萊恩布萊爾和奧本海默。

I was hoping you'd offer a little more color on how you see mobile aftermarket phasing through the year. Some pressure to start was expected given the OE channel dynamics, but you noted stabilization there. So that's certainly positive. Comps obviously ease going forward. Should we see aftermarket return to solid growth in fiscal 2Q? Or is it more of a back half inflection that's contemplated?

我希望您能就今年行動售後市場的發展提供更多資訊。考慮到 OE 頻道的動態，預計啟動會面臨一些壓力，但您注意到那裡的穩定性。所以這當然是正面的。未來的競爭顯然會變得更輕鬆。我們是否應該看到售後市場在第二財季恢復穩健成長？或者說這更像是一種後半部的變形？

Yes. So as we talked about before, on the OEM channel relative to aftermarket, we've been going through an extended period of destocking, driven really on a customer-by-customer basis, which prolonged it over time. We believe that we are largely through that piece at this point. And as we look now forward sequentially, we would suggest that it's going to go up, driven by the overall share gains on the independent channel and the stabilization of the OE channel.

是的。正如我們之前談到的，在相對於售後市場的 OEM 管道上，我們經歷了很長一段時間的去庫存，實際上是在逐個客戶的基礎上推動的，這隨著時間的推移而延長了。我們相信目前我們已經基本完成了該部分。現在，當我們依次展望時，我們認為，在獨立通路的整體份額成長和 OE 通路的穩定的推動下，它將會上漲。

Again, gross margin was obviously excellent in the quarter. Scott, you said that we should expect there to be some moderation from these levels. Could you offer a little more detail there? And the reason that I ask, just very simplistically looking forward, volume should be stronger, certainly going into the back half per your typical seasonality, and I assume there will be more favorable mix. So I'm just looking for a little more quantification, if you're willing to offer that.

同樣，本季的毛利率顯然非常出色。史考特，你說我們應該預期這些水準會有所緩和。能提供更多細節嗎？我問的原因是，只是非常簡單地展望未來，交易量應該會更強，當然會根據典型的季節性進入後半部分，而且我認為會有更有利的組合。所以我只是在尋找更多的量化信息，如果你願意的話。

Yes, sure. I can try to help you out a bit. So obviously, 35.6% is a really good number for Donaldson. We kind of had all things heading in the right direction this quarter, which is great. We had a good cost picture, really good plant performance. We had a good mix. So things really all came together for us this quarter.

是的，當然。我可以盡力幫助你一點。顯然，35.6% 對於唐納森來說是一個非常好的數字。本季我們所有的事情都朝著正確的方向發展，這很棒。我們有很好的成本狀況，工廠績效也非常好。我們有一個很好的組合。因此，本季我們的一切確實都齊頭並進了。

Longer term, we obviously see opportunities to mix our company's gross margin up, and that's something that we're going to -- we've been talking about for a long time, and we continue to work on, and you're seeing some green shoots of that. I don't think 35.6% is necessarily sustainable in the very short term. So we said we expect it to sequentially step down, but we'll still have year-over-year margin improvement throughout the year. So we feel good about where the margin landed for the quarter. We'll have year-over-year gross margin improvement this year. And just sequentially, we're going to step down a little bit from this quarter.

從長遠來看，我們顯然看到了提高公司毛利率的機會，這就是我們要做的事情——我們已經討論了很長時間，我們將繼續努力，你會看到一些那的綠芽。我認為35.6%在短期內不一定是可持續的。因此，我們表示，我們預計它會依次下降，但全年利潤率仍將有所改善。因此，我們對本季的利潤率感到滿意。今年我們的毛利率將年增。接下來，我們將從本季開始稍微下調。

Okay. Understood. And I guess sticking with margin. Can you offer some finer points on what you're anticipating by segment for the year? You did specify that Life Sciences is expected to get to a positive level. Started out rather strong, the legacy segments. Just curious how the segment outlook shakes out for you?

好的。明白了。我想堅持保證金。您能否就今年各細分市場的預期提供一些更具體的觀點？您確實指定生命科學預計將達到積極的水平。傳統細分市場起步相當強勁。只是好奇您的細分市場前景如何？

Yes. I mean, like you said, the first thing we said is we expect the Life Sciences business to get to above breakeven this year. So they're sequentially improving. They sequentially improved from Q4 to Q1, and we expect continued sequential improvement as they scale. We want to continue to invest there. We feel really good about where we're headed and some great opportunities that the team is working very hard on.

是的。我的意思是，就像你說的，我們說的第一件事是我們預期生命科學業務今年將達到損益兩平以上。所以他們正在逐步改進。它們從第四季度到第一季連續改善，我們預計隨著它們的規模擴大，持續連續改善。我們希望繼續在那裡投資。我們對我們的發展方向以及團隊正在努力爭取的一些絕佳機會感到非常滿意。

And our other two businesses had a strong quarter, good solid performance. And it'd be a lot to expect a 35.6% gross margin going forward. So like I said, we don't expect that. But we do expect a 40 basis point improvement driven by all those factors through the year. That will get us to a good point for the company and about 1/3 of our way towards our investor year targets after year 1. So I would say both Mobile Solutions and Industrial will contribute to that improvement. Keeping in mind, we want to continue to invest in future growth.

我們的另外兩項業務季度表現強勁，表現良好。預計未來 35.6% 的毛利率將是一個很大的數字。就像我說的，我們不希望這樣。但我們確實預計全年所有這些因素都會推動 40 個基點的改善。這將使我們的公司達到一個良好的點，並在第一年後實現投資者年度目標的大約 1/3。所以我想說行動解決方案和工業都將為這項改進做出貢獻。請記住，我們希望繼續投資於未來的成長。

Your next question comes from Nathan Jones with Stifel.

您的下一個問題來自 Stifel 的 Nathan Jones。

I'm going to push a little more on the gross margin piece of the business. I know you guys had some initial trouble with pricing with your OEM customers on the Mobile side, which is not unusual for them. And obviously, realizing some of that price now, seeing some deflation. I think part of the strategy there has been to hold on to that pricing if you saw some deflation. So I'm looking for a little bit of commentary on your ability to hold pricing in a deflationary environment.

我將進一步推動該業務的毛利率部分。我知道你們最初在行動端與 OEM 客戶的定價方面遇到了一些麻煩，這對他們來說並不罕見。顯然，現在意識到了一些價格，看到了一些通貨緊縮。我認為，如果出現通貨緊縮，策略的一部分就是維持該定價。因此，我正在尋找一些關於你們在通貨緊縮環境下維持定價能力的評論。

I would also imagine that as Life Sciences ramps up as we go through the year, that would be a tailwind to mix. So I'm just looking for a little bit more color on outside of the seasonality in the second quarter, what are the headwinds to gross margin that maybe make that 35.6% not sustainable for the full year?

我還認為，隨著生命科學在這一年中不斷發展，這將是混合的順風車。因此，我只是想在第二季的季節性之外尋找更多的色彩，那麼毛利率的不利因素是什麼，可能導致全年 35.6% 的毛利率無法持續？

Yes. So I mean I think you've kind of covered it relatively well in your question. We certainly expect a slow and steady mix improvement in our gross margin. So we want to continue to execute on that plan. Like you said, we've worked very hard on pricing. And in some cases, it's taken us a while to get pricing where it needs to be. We've only included in our guidance, a 2% price increase this year. So certainly, price increases are leveling off as kind of the world comes back into balance. We see some of our larger customers are still increasing their prices at a pretty good rate. And we want to have a reasonable commercial discussion with all of our customers on pricing. And certainly, we've never taken advantage of any situation to really push pricing. We want to have reasonable commercial relationships with both our suppliers and our customers.

是的。所以我的意思是，我認為您在問題中已經相對較好地涵蓋了這一點。我們當然預計我們的毛利率將緩慢而穩定地改善。所以我們希望繼續執行該計劃。正如您所說，我們在定價方面下了很大的功夫。在某些情況下，我們需要一段時間才能獲得所需的定價。我們僅將今年的價格上漲 2% 納入我們的指導中。因此，隨著世界恢復平衡，價格上漲肯定會趨於平穩。我們看到一些較大的客戶仍在以相當高的速度提高價格。我們希望與所有客戶就定價進行合理的商業討論。當然，我們從未利用任何情況來真正推高價格。我們希望與我們的供應商和客戶建立合理的商業關係。

And so just like on the upside, we're going to manage it if things trend down. Some commodities are down, as you noted, but media is still up and other costs are still up. So we have to manage the price equation on a consistent basis. We certainly want to be fair and expect fairness on the other side as well. And we're going to continue to manage it and update each quarter on our price impact that we can deliver. If things go crazy up or crazy down, obviously, we have to adjust, as we've done recently. And we're going to continue to manage that in what we consider to be a fair and equitable manner.

因此，就像從好的方面一樣，如果情況呈下降趨勢，我們將進行管理。正如您所指出的，一些商品價格下跌，但媒體價格仍在上漲，其他成本仍在上漲。因此，我們必須在一致的基礎上管理價格方程式。我們當然希望公平，也期望對方也能公平。我們將繼續對其進行管理，並每季更新我們可以提供的價格影響。如果事情瘋狂上漲或瘋狂下跌，顯然我們必須做出調整，就像我們最近所做的那樣。我們將繼續以我們認為公平公正的方式來管理這個問題。

Yes. And maybe just a quick add. The relationships that we have with the customers, I think what really hurt so badly is the degree of change that we experienced through this past cycle. And now as we march forward, we're hoping that the overall range of change would be much smaller than what we've experienced, so we don't get the larger swings which will allow us to really have a more normal type of a pattern on the up and down. And as Scott appropriately said, we're just looking to have good, fair commercial relationships with our customers, and we'll continue to work to do that.

是的。也許只是快速添加。我認為，我們與客戶的關係真正受到嚴重傷害的是我們在過去的周期中經歷的變化程度。現在，當我們前進時，我們希望整體的變化範圍會比我們經歷過的小得多，所以我們不會出現更大的波動，這將使我們真正擁有更正常的變化類型。上和下的圖案。正如斯科特恰當地說的那樣，我們只是希望與客戶建立良好、公平的商業關係，我們將繼續努力做到這一點。

On Life Sciences, to get to 20% growth, you're obviously getting, may I say, a significant sequential ramp up as we go through the year in revenue. Last 4 quarters have been pretty stable at about $60 million of revenue there. Can you talk about how we should think about the cadence of the ramp up through the year? I assume most of that ramp-up is driven by the actual Life Sciences piece, finishing the capacity adds and starting to ramp up volume. So can you just talk about how we should think about that as it goes through the year to get to that 20% growth number?

在生命科學領域，要實現 20% 的成長，我可以說，隨著我們全年的收入成長，顯然會出現顯著的連續成長。過去 4 個季度的收入相當穩定，約 6,000 萬美元。您能談談我們應該如何考慮全年的成長節奏嗎？我認為大部分的成長是由實際生命科學部分所驅動的，完成容量的增加並開始增加產量。那麼您能否談談我們在這一年中如何考慮才能實現 20% 的成長數字？

Sure. It's a sequential step up, Nathan. It goes from a very broad-based approach, particularly notably in some of the larger projects that we have in the bioprocessing world that will ship in the back half of the year, as well as more of a stabilization and looking forward -- crawling forward, if you will, in our disk drive base businesses and some of our traditional. Also, wins within more of our venting applications type of programs. But within the bioprocessing side, clearly, we'll be stepping forward on the back half of the year. So I would say it's very broad-based in Life Sciences. And you'll see us have a sequential improvement looking forward and that the backlogs do support the current guide.

當然。這是一個連續的步驟，內森。它源自於一種非常廣泛的方法，特別是在我們在生物加工領域擁有的一些較大項目中，這些項目將在今年下半年交付，以及更多的穩定性和前瞻性——向前爬行，如果您願意的話，在我們的磁碟機基礎業務和我們的一些傳統業務中。此外，我們還贏得了更多通風應用類型的計劃。但顯然，在生物加工方面，我們將在今年下半年向前邁進。所以我想說它在生命科學領域的基礎非常廣泛。您會看到我們期待著連續的改進，並且積壓的工作確實支持當前的指南。

And last one for me on turbine projects. It's been a while since I've heard you guys talk about winning large turbine projects. I know it's been something that you've been de-emphasizing because the margin profile wasn't that good. Can you talk about whether or not you've managed to make these projects something that's solid margin for the business or how these came about? It's just been a while since we've talked about any of those things.

最後一個是關於渦輪機專案的。我已經有一段時間沒有聽到你們談論贏得大型渦輪機專案了。我知道您一直在淡化這一點，因為利潤率狀況不太好。您能否談談您是否成功地使這些專案為企業帶來了豐厚的利潤，或者這些專案是如何實現的？我們已經有一段時間沒有談論這些事情了。

We talked about some years ago that we were changing our strategy and really entering a very disciplined approach relative to those larger projects and that we felt that we were not getting the overall profitability for those projects. And so we backed down, obviously. However, I would tell you, we also said that should we win large turbine projects, it will be on our terms. And I can tell you, we remain very disciplined in that regard. And so consequently, we're very happy with the large turbine project wins because they're on our terms. And frankly, they're fair with the customer relationships and what we would expect to profit with that type of a business. It is in the neighborhood of, at this point in time this year, of about $30-ish million, give or take a little bit. And so we're really happy with where we are.

幾年前我們談到，我們正在改變我們的策略，並真正針對那些較大的專案採取非常嚴格的方法，並且我們認為我們沒有獲得這些專案的整體獲利能力。顯然，我們做出了讓步。然而，我想告訴你，我們也說過，如果我們贏得大型渦輪機項目，那將按照我們的條件進行。我可以告訴你，我們在這方面仍然非常自律。因此，我們對大型渦輪機專案的勝利感到非常高興，因為它們符合我們的條件。坦白說，他們對客戶關係以及我們期望從此類業務中獲利的期望是公平的。今年這個時候，大約有 3000 萬美元左右，或多或少都有。所以我們對我們現在的處境非常滿意。

Next question comes from Rob Mason with Baird.

下一個問題來自 Rob Mason 和 Baird。

Tod, you described the mobile aftermarket business growth, this mid-single-digit growth for the year kind of driven by price and market share gains. Should we infer that volume is neutral there? Or will volumes be down?

Tod，您描述了行動售後市場業務的成長，今年的中個位數成長是由價格和市佔率成長所推動的。我們是否應該推斷那裡的成交量是中性的？或是成交量會下降嗎？

No, volumes will be up driven by the share gain that we have clearly across the independent channel. So the independent channel is driving the up and then the stabilization of the OEM channel and lapping that destocking activity is really what gives us that kind of an outlook, if you will. And if you just look at what happened year-over-year first quarter, the OEM channel was down high single digits. The independent channel up, obviously, low single digits. But looking forward, we would expect now because we lap the OEM destocking that we'll be up year-over-year. And then on the independent channel, we'll continue the share gain momentum that we have.

不，銷量將由我們在獨立通路中明顯獲得的份額收益所推動。因此，獨立通路正在推動 OEM 通路的上升和穩定，而去庫存活動確實給了我們這樣的前景，如果你願意的話。如果你看看第一季同比情況，你會發現 OEM 通路出現了高個位數的下降。獨立通道上漲，顯然是低個位數。但展望未來，我們現在預計，由於我們完成了 OEM 去庫存，我們的業績將比去年同期成長。然後在獨立通路上，我們將繼續保持現有的份額成長動能。

Okay. So the share gain impact in independent, that is -- you're already seeing that because frankly, aftermarket seasonally was better than typical seasonality, fourth quarter to first quarter. So I'm just curious if that's...

好的。因此，股票收益的影響是獨立的，也就是說，你已經看到了這一點，因為坦白說，售後市場的季節性比第四季到第一季的典型季節性要好。所以我只是好奇那是不是...

It's all share gain, Rob. It's all share gain.

這都是份額收益，羅布。這都是份額收益。

Okay. Very good. Maybe I'll get my gross margin question as well, just maybe more pointedly, is 35% handle on fiscal '24 gross margin, I mean, is that a likelihood possibility?

好的。非常好。也許我也會得到我的毛利率問題，也許更尖銳的是，24 財年毛利率是否達到 35%，我的意思是，這有可能嗎？

35.0% or 35.9%? So I mean when we said we did 35.6%, right, in the quarter, we said we're going to sequentially step down. But we are going to have Qs 2, 3 and 4, we should pretty much have year-over-year gross margin growth. So I'll let you triangulate it and work your calculus from there.

35.0% 還是 35.9%？所以我的意思是，當我們說我們在本季度完成了 35.6% 的工作時，我們說我們將依次下台。但我們將會有第二、第三和第四季度，我們應該會看到毛利率年增。所以我會讓你對其進行三角測量並從那裡進行微積分。

Sure. Okay. Very good. Just last question. Just you did tweak the Off-Road as well as the On-Road guidance lower understandably, I think, just given what we're hearing. But if I think -- I know the comps ease in Off-Road for the balance of the year. But if I think about that trending out just in revenue dollars, it seems to suggest that revenue dollars go up from here. That's maybe counter a little bit of what we're hearing from some of the producers. I'm just curious if -- the level of visibility around that as you think about for the remaining 3 quarters?

當然。好的。非常好。只是最後一個問題。我認為，考慮到我們所聽到的情況，您確實將越野和公路指導降低了，這是可以理解的。但如果我想——我知道今年剩下的時間越野賽的比賽會很輕鬆。但如果我只考慮收入的趨勢，這似乎表明收入從這裡開始上升。這可能與我們從一些製作人那裡聽到的說法有些反駁。我只是好奇——正如您在剩下的三個季度中所考慮的那樣，圍繞這一點的可見性水平如何？

Yes. If I just talk about the On and the Off, I'll start with the On-Road. Yes, we did go from up low-single digits to flat. But I want to point out that it's kind of nuanced. So we were up like plus 1, and now we're flat. And so the overall dollar value of that is like $0 to $5 million. So it's not a lot of movement across the models on the On-Road sector. And so we would tell you that the On-Road sector really is kind of behaving as expected. It's just a nuance, if you will.

是的。如果我只談論 On 和 Off，我將從 On-Road 開始。是的，我們確實從低個位數上升到持平。但我想指出的是，這有點微妙。所以我們的漲幅就像+1一樣，現在我們持平。因此，其總價值約為 0 至 500 萬美元。因此，公路車領域的車型變化並不大。因此，我們可以告訴您，公路產業的表現確實符合預期。如果你願意的話，這只是一個細微差別。

And then within the Off-Road sector, we did bring the Off-Road sector down as in our remarks commented by -- or really highlighted by the ag pressures that we are starting to see. However, within the model, the second half in Off-Road is higher than the first half. So I'm not sure you have your model that way based upon the question, but it's important to be that on a dollar basis.

然後在越野領域，我們確實降低了越野領域的水平，正如我們在評論中所評論的那樣，或者我們開始看到的農業壓力確實強調了這一點。然而，在模型中，越野的後半部高於前半部。所以我不確定你是否有基於這個問題的模型，但重要的是要以美元為基礎。

Yes. Yes, that was the inference. That was the case. But I was just -- so you're seeing those pressures in Off-Road now, but they -- production rates improve?

是的。是的，這就是推論。情況就是如此。但我只是 - 所以你現在看到了越野方面的壓力，但是他們 - 生產力提高了？

Yes. But you have to realize that we're typically a 48-52 first half, second half type of company. And based upon what we're seeing, we have that type of a model built in ahead of us. And that's kind of how we built it out and projected it.

是的。但你必須意識到，我們通常是一家上半場 48-52 、下半場 48-52 的公司。根據我們所看到的情況，我們面前已經建立了這種類型的模型。這就是我們建構和預測它的方式。

Your next question comes from Brian Drab with William Blair.

你的下一個問題來自布萊恩·德拉布和威廉·布萊爾。

You obviously had stronger performance in the Aerospace and Defense segment and some share gains and wins there. Can you just elaborate on that? Was that win on the Aerospace side? Or more on the Defense side? It sounds like Aerospace and in a cabin air niche of the market where you've had a presence for a long time. So can you just elaborate on what's happening there?

顯然，你們在航空航天和國防領域表現強勁，並取得了一些份額成長和勝利。能詳細說明一下嗎？這是航空航天方面的勝利嗎？還是防守方面更多？這聽起來像是航空航太領域，以及您已經存在很長時間的機艙空氣市場利基市場。那麼您能詳細說明一下那裡發生了什麼事嗎？

Yes, it's rotorcraft. So it's new programs come on board with -- now we're delivering rotorcraft based project, and that is a very long-term program. So we would expect that new program to deliver for many years to come.

是的，它是旋翼機。所以這是一個新的計劃——現在我們正在交付基於旋翼機的項目，這是一個非常長期的計劃。因此，我們預計新計劃將在未來許多年內交付。

Okay. Is that within a Defense program? Or is that commercial?

好的。這是在國防計劃內嗎？或者說這是商業性的？

Yes. [CH-53K] helicopter.

是的。 [CH-53K]直升機。

Great. Okay. And then would you be able to provide an update on some of the bioprocessing pipeline stats that you've shared in the past? You talked recently about having 20 customers, prospective customers, I guess, and a pipeline of over $200 million in revenue, and you mentioned 20% of the pipeline past technical approvals. How is that going? And could you update any of those metrics?

偉大的。好的。然後您能否提供您過去分享的一些生物加工管道統計數據的最新資訊？您最近談到擁有 20 個客戶，我猜是潛在客戶，以及收入超過 2 億美元的管道，並且您提到了 20% 的管道已通過技術審批。進展如何？您可以更新其中任何指標嗎？

Yes. Just generally, Brian, I'd tell you that it continues to grow for us. We still have a really robust pipeline. The pipeline in the last quarter did grow. We continue to add out our sales staff, touching more customers and touching, far more important than that, more laboratories at those customers. So we're really pleased with the progress that we have. And we really have great momentum now. We are not prepared to update those numbers at this point in time. I would just tell you with certainty the numbers are higher.

是的。布萊恩，我想告訴你的是，總的來說，我們的業務持續成長。我們仍然擁有非常強大的管道。上個季度的管道確實有所成長。我們繼續增加我們的銷售人員，接觸更多的客戶，更重要的是，接觸這些客戶的更多實驗室。因此，我們對所取得的進展感到非常滿意。我們現在確實擁有強勁的勢頭。我們目前不准備更新這些數字。我只是肯定地告訴你，數字更高。

Is some of the bioprocessing revenue starting to hit then in fiscal '24 in a meaningful way such that that's influencing your forecast for Life Sciences up 20% for the year after being down 4% in the first quarter?

一些生物加工收入是否會在 24 財年開始以有意義的方式出現，從而影響您對生命科學的預測，在第一季下降 4% 後，今年增長 20%？

So what we have in the bioprocessing side, particularly related to the acquisitions that we have, for example, in Univercells Technologies and Solaris, et cetera, is baked into the current guide. There is bioprocessing deliverables, I mean, revenue within the guide for sure.

因此，我們在生物加工方面的情況，特別是與我們在 Univercells Technologies 和 Solaris 等收購相關的收購，已納入當前指南中。我的意思是，指南中肯定有生物加工可交付成果，收入。

Your next question comes from Laurence Alexander with Jefferies.

您的下一個問題來自傑弗里斯的勞倫斯·亞歷山大。

It's Dan Rizzo on for Laurence. So if we talk about pricing, I was just wondering how it works. Is it an ongoing discussion as like monthly reviews or quarterly reviews? How often do you like go to your customers and just discuss the state of the world, so to speak?

丹·里佐 (Dan Rizzo) 替補勞倫斯 (Laurence)。因此，如果我們談論定價，我只是想知道它是如何運作的。是否是像每月審查或季度審查這樣的持續討論？可以這麼說，您多久喜歡去拜訪您的客戶並討論世界狀況？

So you really have to parcel out the company into two buckets. So the first bucket is the independent aftermarket as well as our industrial-based businesses. That is more quick to change, and we take pricing action on an annual basis. We have returned back to a more normalized annual price action in the larger portion of the corporation.

所以你真的必須把公司分成兩個部分。因此，第一個目標是獨立的售後市場以及我們的工業業務。這種情況改變得更快，我們每年都會採取定價行動。公司大部分業務已恢復到更正常化的年度價格走勢。

On that smaller portion, that 35% of the company, which is like that OEM or first-fit based project activity, those would have longer-term contracts. And so that is typically now on a quarterly basis, but it is discussed because there's ranges involved and there's particular commodities involved and -- so it's pretty complex models that we continue to work through with the customers and perfect over time. Because there's been a tremendous challenge on the last cycle that really challenged new models to be built, et cetera, and we continue to perfect those looking forward.

對於較小的部分，即公司的 35%，類似於 OEM 或基於首次安裝的專案活動，這些將擁有長期合約。現在通常是按季度進行，但之所以會進行討論，是因為涉及範圍和特定商品，所以這是一個非常複雜的模型，我們將繼續與客戶合作並隨著時間的推移進行完善。因為上一個週期面臨著巨大的挑戰，這確實對要建造的新模型提出了挑戰，等等，我們將繼續完善那些期待的模型。

So it's ongoing relationship discussions as you talked about, but it's -- but they're pretty frequent. They're -- at this point, I would tell you, they're at least quarterly in discussion.

正如你所說，這是持續的關係討論，但它們非常頻繁。我想告訴你，目前它們至少每季進行一次討論。

Okay. And then you mentioned the slowness in China. A couple of things. One, can any of that slowdown in China be attributed to seasonality in front of the Chinese New Year? And then outside of China and really in the U.S. and Europe, outside of ag, is it fair to say that things are generally okay or improving or growing? Is that how we're thinking about the rest of the world, at least from here -- for here?

好的。然後你提到了中國的緩慢。有幾件事。第一，中國經濟放緩是否可以歸因於農曆新年之前的季節性因素？那麼，在中國之外，實際上在美國和歐洲，在農業之外，可以公平地說，情況總體上還不錯、正在改善或正在增長嗎？這就是我們對世界其他地方的看法嗎，至少從這裡──在這裡？

Yes. If I look at the rest of the world, I would tell you -- I'll get to your China question in a second, but I would tell you, if we look at the whole world across construction, ag,, mining, on-road sectors, I would tell you, the Americas, so the United States and LatAm, continue to be solid. I would tell you, China obviously is the very troubled. It remains very troubled. I don't think it has anything to do with Chinese New Year. It's just a very troubled economy, and we're looking for green shoots to start there, and we just have not seen signs.

是的。如果我看看世界其他地方，我會告訴你——我一會兒就會回答你的中國問題，但我會告訴你，如果我們看看整個世界的建築、農業、採礦、 -公路部門，我會告訴你，美洲，所以美國和拉丁美洲，繼續保持穩定。我告訴你，中國顯然是非常麻煩的。它仍然非常困擾。我不認為這跟中國新年有什麼關係。這是一個非常困難的經濟，我們正在尋找新的萌芽，但我們只是沒有看到跡象。

I would tell you, Europe -- as we continue to look at Europe, I would suggest we have a tighter eye on Europe to understand maybe a little bit of a more cautious view of Europe, and we'll see how that develops going forward. But that's generally how we would give you the macro view geographically across our end markets.

我想告訴你，歐洲——當我們繼續關注歐洲時，我建議我們更加密切地關注歐洲，以了解對歐洲可能更加謹慎的看法，我們將看到未來的發展。但這通常是我們向您提供整個終端市場的宏觀地理視角的方式。

There are no further questions at this time. I will now turn the call back to Tod Carpenter for closing remarks.

目前沒有其他問題。現在，我將把電話轉回給托德·卡彭特，讓其致閉幕詞。

That concludes the call today. Thanks to everyone who participated, and I look forward to reporting our second quarter fiscal 2024 results in February. Have a great holiday, everyone. Goodbye.

今天的電話會議到此結束。感謝所有參與的人，我期待在 2 月報告我們的 2024 財年第二季業績。祝大家假期愉快。再見。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。