杜邦 (DD) 2019 Q2 法說會逐字稿

Good day and welcome to the DuPont second quarter earnings call. Today's conference is being recorded. And at this time, I would like to turn the conference over to Lori Koch. Please go ahead.

大家好，歡迎參加杜邦公司第二季財報電話會議。今天的會議正在錄影。現在，我想把會議交給洛里·科赫。請繼續。

Good morning, everyone. Thank you for joining us for DuPont Second Quarter 2019 Earnings Conference Call. We are making this call available to investors and media via webcast.

各位早安。感謝您參加杜邦公司2019年第二季財報電話會議。我們將透過網路直播向投資者和媒體提供本次電話會議的收聽服務。

We have prepared slides to supplement our comments during this conference call. These slides are posted on the Investor Relations section of DuPont's website and through the link to our webcast.

我們準備了幻燈片，以補充我們在本次電話會議中的演講。這些幻燈片已發佈在杜邦公司網站的投資者關係部分，也可透過我們網路直播的連結查看。

Joining me on the call today are Marc Doyle, Chief Executive Officer; Jean Desmond, our Chief Financial Officer; and Ed Breen, Executive Chair. Please read the forward-looking statements disclaimer contained in the slides.

今天與我一起參加電話會議的有：執行長馬克·多伊爾；首席財務官吉恩·德斯蒙德；以及執行主席埃德·布林。請閱讀幻燈片中包含的前瞻性聲明免責聲明。

During our call, we will make forward-looking statements regarding our expectations or predictions about the future. Because these statements are based on current assumptions and factors that involve risks and uncertainty, our actual performance and results may differ materially from our forward-looking statements. Our Form 10-K, as modified by our first quarter Form 10-Q and current report, include detailed discussion of principal risks and uncertainties which may cause such difference.

在電話會議中，我們將就我們對未來的預期或預測發表前瞻性聲明。由於這些聲明是基於目前的假設和涉及風險和不確定性的因素，我們的實際表現和結果可能與我們的前瞻性聲明有重大差異。我們的 10-K 表格（經第一季 10-Q 表格和當前報告修改）詳細討論了可能導致這種差異的主要風險和不確定性。

Unless otherwise specified, all historical financial measures presented today exclude significant items. We will also refer to non-GAAP measures. A reconciliation to the most directly comparable GAAP financial measure and other associated disclosures are contained in our press release and in the appendix of our slides. (Operator Instructions)

除非另有說明，今天列出的所有歷史財務指標均不包括重大項目。我們也會參考非GAAP指標。與最直接可比較的 GAAP 財務指標的調節表及其他相關披露信息，請參閱我們的新聞稿和幻燈片附錄。（操作說明）

I'll now turn the call over to Marc.

現在我將把電話交給馬克。

Thanks, Lori, and good morning, everyone. Before we get started, I'd like to acknowledge the incredible accomplishment achieved by the entire DuPont organization that enabled the successful separation of Dow on April 1 and Corteva on June 1. I'd like to thank everyone for all they did over the past 3.5 years to execute our industry-defining transaction.

謝謝Lori，大家早安。在正式開始之前，我想對杜邦公司全體員工取得的卓越成就表示感謝，正是他們的努力才使得陶氏化學於4月1日成功分拆，科迪華於6月1日成功分拆。我要感謝大家在過去三年半的時間裡為完成這項具有產業里程碑意義的交易所所付出的一切努力。

I'd also like to specifically acknowledge Jim Fahey for his role in the integration of the Dow and DuPont electronics businesses and his more than 25 years of service. As we announced this morning, Jon Kemp will succeed Jim as President of the E&I segment.

我還要特別感謝吉姆法伊在陶氏和杜邦電子業務整合中所發揮的作用，以及他超過 25 年的服務。正如我們今天早上宣布的那樣，Jon Kemp 將接替 Jim 擔任 E&I 部門總裁。

Let's get started on the quarter on Slide 2. We delivered a strong quarter and navigated dynamic market conditions in select end markets by staying dedicated to our core principles of innovation-led growth and disciplined cost control. We significantly expanded both gross and operating EBITDA margins and grew pro forma adjusted EPS in the high single digits versus the year ago period. We also continued to drive returns on our innovation spend with key new wins across several high-growth trends, including auto electrification, 5G, health care, water and sustainable food sources.

讓我們從第二張投影片開始介紹本季的情況。我們本季業績強勁，並透過堅持創新驅動成長和嚴格成本控制的核心原則，成功應對了部分終端市場動態變化的市場環境。我們大幅提高了毛利率和營業 EBITDA 利率，並且與去年同期相比，調整後每股收益實現了高個位數成長。我們也透過在多個高成長趨勢領域取得關鍵新勝利，持續提高創新投入的回報，包括汽車電氣化、5G、醫療保健、水資源和永續食品來源。

Looking closely at the numbers. Total sales of $5.5 billion were down 3% on an organic basis as continued strength in Safety & Construction was more than offset by the well-documented weakness we and others are seeing in electronics and automotive end markets. Organic sales in our core segments were down by 1.7%. Regionally, organic sales were down 2% in the U.S. and Canada, down 3% in EMEA, down 4% in Asia Pacific and up 1% in Latin America. The organic sales decline in the U.S. and Canada was primarily driven by lower sales in the Non-Core segment from weak polysilicon pricing impacting demand. Weakened automotive and electronics end markets continued to drive the declines in both Asia Pacific and EMEA. However, we did see sequential improvement in our China results with sales down 3% versus prior year in the second quarter versus 10% in the first quarter. The increases were realized across all of our core segments.

仔細查看這些數字。由於安全與建築行業的持續強勁增長被電子和汽車終端市場（我們和其他人都看到了這一點）的疲軟所抵消，總銷售額為 55 億美元，按有機增長計算下降了 3%。我們核心業務領域的有機銷售額下降了1.7%。從區域來看，美國和加拿大的有機銷售額下降了 2%，歐洲、中東和非洲地區下降了 3%，亞太地區下降了 4%，拉丁美洲增加了 1%。美國和加拿大的有機銷售額下降主要是由於多晶矽價格疲軟影響了需求，導致非核心業務部門的銷售額下降。汽車和電子終端市場的疲軟持續導致亞太地區和歐洲、中東及非洲地區的經濟下滑。不過，我們在中國市場的業績確實出現了環比改善，第二季銷售額年減 3%，而第一季年減 10%。我們所有核心業務板塊均實現了成長。

One of the key bright spots in the quarter was the substantial improvement in gross margin, which was realized in all of our core segments. Gross margin improved more than 200 basis points as a result of our pricing discipline, plant productivity and cost control. All in, swift action in light of prolonged market weakness led us to outperform from an operating EBITDA perspective versus expectations in spite of a weaker top line.

本季的一大亮點是毛利率的大幅提升，我們所有核心業務部門都實現了這一目標。由於我們採取了嚴格的定價策略、提高了工廠生產率並加強了成本控制，毛利率提高了 200 多個基點。綜上所述，鑑於市場持續疲軟，我們採取了迅速行動，儘管營收有所下滑，但從營運 EBITDA 的角度來看，我們的業績仍優於預期。

Operating EBITDA of $1.4 billion was essentially flat with the prior year period, resulting in strong operating leverage and demonstrates our ability to deliver pricing and drive operating efficiencies amid challenging market conditions. Excluding currency, operating EBITDA in our core segments was up 6% on a year-over-year basis.

營運 EBITDA 為 14 億美元，與去年同期基本持平，實現了強勁的營運槓桿，並證明了我們在充滿挑戰的市場環境下，有能力實現定價並提高營運效率。剔除匯率因素，我們核心業務的經營性 EBITDA 較去年同期成長 6%。

We also delivered operating EBITDA margin improvement of 170 basis points versus the prior year and have delivered operating EBITDA margin improvement of greater than 300 basis points since the second quarter of 2017.

與前一年相比，我們的營業 EBITDA 利潤率提高了 170 個基點，並且自 2017 年第二季度以來，我們的營業 EBITDA 利潤率提高了 300 多個基點。

Adjusted EPS, as shown on Slide 3, was up 9% on a pro forma basis versus prior year driven by lower depreciation and amortization. The quarter also benefited from a $0.03 per share tailwind from a lower share count, in line with the share repurchases we did as part of DowDuPont and a priority that we will maintain as part of new DuPont evident in the $250 million in purchases that we have completed to date.

如投影片 3 所示，經調整後的每股盈餘按備考基準計算比上年增長 9%，主要原因是折舊和攤提減少。本季也受惠於每股 0.03 美元的利好，這得益於股份數量的減少，這與我們作為陶氏杜邦公司的一部分進行的股票回購計劃相符，並且是我們作為新杜邦公司將繼續保持的優先事項，這從我們迄今為止完成的 2.5 億美元的收購中可見一斑。

Before I turn the call over to Jean to discuss the quarter in full detail, I'll provide an update to our full year guidance as well as our expectations for the third quarter on Slide 4.

在我將電話轉交給 Jean 詳細討論本季之前，我將在第 4 張投影片上更新我們的全年業績指引以及我們對第三季的預期。

For the full year, we now expect organic sales to be slightly down versus the prior year. This change in expectation is a reflection of the prolonged weakness in our short-cycle businesses, primarily automotive and semiconductors, causing both lower volumes and pricing headwinds as a result of the supply/demand imbalance.

我們現在預計，全年有機銷售額將比去年略有下降。預期的這種變化反映了我們短週期業務（主要是汽車和半導體）的持續疲軟，由於供需失衡，導致銷售下降和價格上漲。

From an earnings perspective, we expect operating EBITDA to be on the low end of our previously stated range. We are targeting $80 million in cost actions, in addition to the $30 million we took in the second quarter, to mitigate the macro headwind from both price and volume in the second half. These new cost actions are biased towards the fourth quarter and include the benefit of a restructuring program authorized during the second quarter of up to $130 million.

從獲利角度來看，我們預計營運 EBITDA 將處於我們之前所述範圍的低端。我們計劃在第二季投入 3,000 萬美元用於成本控制，目標是投入 8,000 萬美元，以緩解下半年價格和銷售方面的宏觀不利因素。這些新的成本控制措施主要集中在第四季度，其中包括第二季度批准的重組計劃帶來的高達 1.3 億美元的收益。

All in versus our previous guidance, we lowered our organic sales by approximately 300 basis points versus the previous midpoint and lowered EBITDA by about 90 basis points versus the prior midpoint, which is a direct reflection of our ability to mitigate weak market conditions with levers that we can control.

與我們先前的預期相比，我們將有機銷售額下調了約 300 個基點（較之前的中點），將 EBITDA 下調了約 90 個基點（較之前的中點），這直接反映了我們能夠利用可控的手段來緩解疲軟的市場狀況。

We are raising our pro forma adjusted EPS guidance range to $3.75 to $3.85 per share, reflecting the strong second quarter results, the net impact of our second half segment earnings revision and updated D&A and tax rate assumptions, the latter of which is now expected to be at the high end of the range.

我們將調整後的每股收益預期範圍上調至每股 3.75 美元至 3.85 美元，這反映了強勁的第二季度業績、下半年分部盈利修正的淨影響以及更新的折舊和攤銷和稅率假設，其中後者目前預計將處於該範圍的高端。

For the third quarter, we expect organic sales to be down low single digits. From an earnings perspective, we expect our tight management of spend and strong productivity actions will again enable us to deliver strong operating leverage despite a lower top line.

我們預計第三季有機銷售額將出現個位數下滑。從獲利角度來看，我們預計，儘管營收下降，但我們嚴格的支出管理和強有力的生產力提升措施將再次使我們能夠實現強勁的營運槓桿。

For the third quarter we expect pro forma adjusted EPS to be in the range of $0.94 to $0.99 per share.

我們預計第三季調整後每股收益將在 0.94 美元至 0.99 美元之間。

In the appendix, we provide segment-level commentary as well as some additional modeling guidance.

在附錄中，我們提供了分段式評論以及一些額外的建模指導。

Overall I'm very pleased with how our team continues to navigate the market uncertainty by capitalizing fully on our competitive strengths and focusing on the levers within our control to deliver strong bottom line results. These actions will position us well as markets recover to capitalize on our improved cost structure and investments in innovation.

總的來說，我對我們的團隊能夠繼續應對市場的不確定性感到非常滿意，他們充分發揮了我們的競爭優勢，並專注於我們可控的因素，從而取得了強勁的盈利成果。這些措施將使我們在市場復甦時佔據有利地位，從而充分利用我們改進的成本結構和在創新方面的投資。

I'll now turn the call over to Jean.

現在我將把電話交給吉恩。

Thanks, Marc. On Slide 5, you can see a snapshot of the second quarter sales and operating EBITDA result for each of our segments.

謝謝你，馬克。在第 5 張投影片中，您可以查看我們每個部門第二季銷售額和營業 EBITDA 結果的快照。

Before I move into the segment detail, I want to assess our performance opposite 2 of our medium-term financial targets: organic revenue growth and operating leverage.

在深入探討各細分市場細節之前，我想先評估一下我們在實現兩個中期財務目標（有機收入成長和經營槓桿）方面的表現。

We set a medium-term target for organic sales growth of 3% to 5%, which was based on a 3% global GDP. Regardless of your view of what global GDP will be for 2019, it's clear that our current year performance is well short of this medium-term target.

我們設定了中期有機銷售成長目標為 3% 至 5%，這是基於 3% 的全球 GDP 成長率。無論你對 2019 年全球 GDP 的預期如何，很明顯，我們今年的表現遠未達到這個中期目標。

For the year, we expect our sales to be slightly down organically. While several of our most exciting end markets, such as Water Solutions and probiotics, saw high single and double-digit growth in the quarter, the softness in short-cycle businesses that Marc talked about are overpowering these bright spots.

我們預計今年的銷售額將略有下降。雖然我們幾個最令人興奮的終端市場，如水處理解決方案和益生菌，在本季度實現了個位數和兩位數的高增長，但馬克所說的短期業務疲軟掩蓋了這些亮點。

We are committed to meeting the targets we have set and are taking actions to move our performance in the right direction. Our R&D spend is biased towards high-growth, high-return areas that we believe will allow us to continue to accelerate our innovation-led growth. We are also taking actions in Non-Core, which is now a separate segment in our reported results. Once complete, these portfolio actions alone are expected to improve our underlying performance. For 2019, we expect the Non-Core segment to negatively impact our organic sales growth by about 80 basis points.

我們致力於實現既定目標，並正在採取行動，使我們的業績朝著正確的方向發展。我們的研發投入專注於高成長、高回報的領域，我們相信這些領域將使我們能夠繼續加速以創新為導向的成長。我們也在非核心業務領域採取了行動，該領域現在已成為我們報告業績中的一個單獨部分。一旦完成，僅這些投資組合調整措施就有望改善我們的基本面績效。預計 2019 年非核心業務部門將對我們的有機銷售成長產生約 80 個基點的負面影響。

Let me also address operating leverage. We are committed to delivering 1.5x operating EBITDA growth over our expected top line growth. Through the first half, we've generated greater than 80 basis points of operating EBITDA growth in an environment where our top line has declined nearly 500 basis points. With continuing softness in the second half, we are taking additional cost actions, as Marc mentioned, to maintain our leverage.

我還想談談經營槓桿。我們致力於實現比預期營收成長高出 1.5 倍的營運 EBITDA 成長。上半年，在營收下降近 500 個基點的情況下，我們的營業 EBITDA 成長了 80 個基點以上。正如馬克所提到的那樣，由於下半年市場持續疲軟，我們正在採取額外的成本控制措施，以保持我們的議價能力。

With that, let me provide some additional details on the segment results.

接下來，我將提供一些關於細分市場結果的補充細節。

Starting with Electronics & Imaging on Slide 6. Second quarter sales of $858 million and operating EBITDA of $246 million reflect continued soft consumer demand, coupled with customer destocking, which was mostly driven by high inventory levels in the memory sector. Our position in Advanced Materials for the production of next-generation smartphones launching later this year remained strong. We are encouraged by the pace of early orders. Additionally, we continue to see strong volume gains in OLED display materials. However, greater-than-expected softness and high inventory levels resulted in a year-over-year volume decline in Semiconductor Technologies, one of our highest-margin businesses in E&I. These declines led to a less favorable product mix, lowering operating EBITDA margin by 280 basis points versus the second quarter of 2018.

從第 6 張投影片中的電子與影像業務開始。第二季銷售額為 8.58 億美元，營業 EBITDA 為 2.46 億美元，反映出消費者需求持續疲軟，加上客戶去庫存，而這主要是由於記憶體產業的庫存水準較高所致。我們為今年稍後即將推出的下一代智慧型手機的生產提供先進材料，並保持著強勁的地位。早期訂單的成長速度令我們感到鼓舞。此外，OLED 顯示材料的銷售也持續強勁成長。然而，超出預期的疲軟態勢和高庫存水準導致半導體技術業務銷量較去年同期下降，而半導體技術是我們 E&I 業務中利潤率最高的業務之一。這些下滑導致產品組合不太有利，與 2018 年第二季相比，營業 EBITDA 利潤率下降了 280 個基點。

Looking forward, we expect growth in our Interconnect Solutions business as we see the launch of new phone models later this year but also anticipate continued soft market conditions in the semiconductor space.

展望未來，隨著今年稍後新款手機的推出，我們預計互連解決方案業務將實現成長，但我們也預期半導體領域的市場狀況將持續疲軟。

You can see the results of our Nutrition & Biosciences business on Slide 7, which delivered 150 basis points of operating EBITDA margin expansion year-over-year on cost synergies and pricing gains across all regions and businesses.

您可以在第 7 張投影片上看到我們營養與生物科學業務的成果，該業務透過成本協同效應和定價收益，在所有地區和業務中實現了 150 個基點的營業 EBITDA 利潤率同比增長。

Nutrition & Biosciences delivered operating EBITDA of $391 million on sales of $1.6 billion. Bright spots within the N&B portfolio included probiotics, which returned to double-digit growth this quarter with particular strength in Asia Pacific, and mid-single-digit growth in microbial control. We also continued to see strong demand growth in our Food & Beverage business from a plant-based meat trend. Offsetting these areas of strength, we saw declines in functional solutions within Food & Beverage driven by the unseasonably cool start to the summer season in North America, impacting our dairy market sales. Volumes in Pharma Solutions declined low single digits due to capacity constraints and mix enrichment as we shift the portfolio towards higher-margin products. We expect to see a solid growth trajectory from Nutrition & Biosciences businesses supported by a return to positive growth from Food & Beverage and Pharma Solutions in the second half. We will continue to invest our R&D dollars into exciting spaces such as the microbiomes to drive innovation-led growth.

營養與生物科學業務的營業 EBITDA 為 3.91 億美元，銷售額為 16 億美元。N&B 產品組合中的亮點包括益生菌，該業務本季恢復了兩位數的成長，尤其在亞太地區表現強勁；以及微生物控制業務的中等個位數成長。我們也看到，植物肉的流行趨勢帶動了食品飲料業務的強勁需求成長。儘管北美夏季開局異常涼爽，導致食品飲料行業的實用解決方案下滑，抵消了上述優勢，也影響了乳製品市場的銷售。由於產能限制和產品組合豐富化（我們將產品組合轉向利潤率更高的產品），醫藥解決方案的銷售出現了個位數的下降。我們預計，在下半年食品飲料和醫藥解決方案業務恢復正成長的支撐下，營養與生物科學業務將呈現穩健的成長態勢。我們將繼續把研發資金投入微生物組等令人興奮的領域，以推動創新驅動的成長。

Slide 8 shows the results of our Transportation & Industrial segment. Similar to E&I, T&I is exposed to short-cycle businesses, mostly autos and electronics where weak demand continues driven by the global macroeconomic conditions and U.S.-China trade tariffs. This weaker demand also led to additional softness in Europe, where volumes for the segment were down mid-teens percent primarily driven by a weaker export market into China.

第 8 張幻燈片展示了我們交通運輸和工業部門的表現。與 E&I 類似，T&I 產業也受短期經濟週期影響，主要集中在汽車和電子產品領域，而受全球宏觀經濟狀況和中美貿易關稅的影響，這些產業的需求持續疲軟。需求疲軟也導致歐洲市場進一步走軟，細分市場的銷售量下降了15%左右，主要原因是中國出口市場疲軟。

T&I sales of $1.3 billion were down 7% versus the year ago period on an organic basis with 12% volume decline, partially offset by 5% pricing strength. In the second half, we anticipate year-over-year pricing gain will diminish and sequential prices will decline modestly and supply/demand balances normalize versus the prior year.

T&I 銷售額為 13 億美元，以有機成長計算年減 7%，銷量下降 12%，部分被 5% 的價格上漲所抵銷。下半年，我們預期年比價格漲幅將有所下降，環比價格將小幅下降，供需平衡將與去年同期相比恢復正常。

Operating EBITDA of $357 million declined 11% with lower volumes and a currency headwind more than offsetting price increases and cost synergy savings.

營業 EBITDA 為 3.57 億美元，下降 11%，銷量下降和匯率不利因素抵消了價格上漲和成本協同效應帶來的收益。

For the third quarter, we expect a similar volume environment with ongoing weakness in auto and electronics as a result of lower demand out of China and continued destocking in the polymer distribution chain. Global auto inventory levels improved in the second quarter, and we anticipate polymer inventory levels to normalize by year-end. We anticipate lower demand will be partially offset by additional productivity action.

第三季度，我們預期銷售環境與上一季類似，由於中國需求下降以及聚合物分銷鏈持續去庫存，汽車和電子產品產業將持續疲軟。第二季全球汽車庫存水準有所改善，我們預計聚合物庫存水準將在年底前恢復正常。我們預期需求下降的情況將部分被提高生產力的額外措施所抵消。

The results of our Safety & Construction business are shown on Slide 9. Net sales of $1.3 billion, up 5% on an organic basis, coupled with operating EBITDA margin improvement of 690 basis points led to operating EBITDA of $382 million, up 29% from the prior year. The 5% organic growth included a 4% pricing gain, which was across all businesses and all regions led by Safety and Water Solutions. The 1% volume growth included high single-digit growth in the Water Solutions business, which was led by gains in Asia Pacific. This growth in water was offset by lower volumes in Shelter Solutions on continued softness in the North America residential construction market.

我們的安全與建築業務的表現在第 9 頁投影片中有所體現。淨銷售額為 13 億美元，以有機成長計算成長了 5%，加上營業 EBITDA 利潤率提高了 690 個基點，營業 EBITDA 為 3.82 億美元，比上一年增長了 29%。5% 的有機成長包括 4% 的價格上漲，這一成長遍及所有業務和所有地區，其中安全和水解決方案業務表現最為突出。1% 的銷售成長中，水處理解決方案業務實現了接近兩位數的成長，這主要得益於亞太地區的成長。水務業務的成長被北美住宅建築市場持續疲軟導致的房屋解決方案業務量下降所抵消。

Growth in operating EBITDA was led by Water and Safety businesses, where local price gains, cost synergies, productivity improvements and higher volumes in water more than offset a currency headwind. As we look to the second half for Safety & Construction, we anticipate the pace of price improvements to decline as we begin to lap many of our prior year price increases. We also have several planned maintenance shutdowns in the back half of the year, which will impact both our volumes and our earnings.

營運 EBITDA 的成長主要得益於水務和安全業務，其中本地價格上漲、成本協同效應、生產力提高以及水務業務銷量增加，這些因素足以抵消匯率不利因素的影響。展望下半年安全與建築業，我們預計價格改善的速度將會放緩，因為我們將開始抵消前一年的許多價格上漲。今年下半年我們還有幾個計畫內的維護停產，這將影響我們的銷售和收益。

Let me wrap up with a few comments on the balance sheet and return on invested capital on Slide 10. You'll see that our capital structure is nearly final at this point with a few remaining items, including a $200 million funding into our Swiss pension, which is planned before year-end as part of the separation.

最後，我想就第 10 張投影片上的資產負債表和投資資本報酬率做一些評論。你會發現，目前我們的資本結構已基本定型，只剩下一些項目，包括向我們的瑞士退休金注資 2 億美元，這筆資金計劃在年底前作為分拆的一部分注入。

At the end of June, our net debt was $15.6 billion.

截至6月底，我們的淨債務為156億美元。

From a working capital perspective, we did see a use of capital in the second quarter versus the year-end 2018 balance sheet. We typically see an intra-year increase, but our second quarter increase was greater than normal driven by higher inventory levels due to a weaker demand and higher accounts receivable primarily due to stand-up activities required as part of the separation. We continue to see $1 billion of working capital productivity opportunity and expect to bring our working capital more in line by year-end.

從營運資本的角度來看，我們確實看到第二季資本的使用情況與 2018 年末的資產負債表相比有所改善。我們通常會看到年內成長，但由於需求疲軟導致庫存水準上升，以及由於分拆過程中需要開展的啟動活動導致應收帳款增加，我們第二季的成長幅度高於正常水準。我們仍然看到10億美元的營運資金生產力提升機會，並預計到年底前將使我們的營運資金更加合理。

We will publish a cash flow statement as part of the 10-Q, which will be filed next week. However, it includes the results of Dow and Corteva up until their separation.

我們將在下週提交的 10-Q 季報告中公佈現金流量表。然而，它包含了陶氏化學和科迪華在分拆之前的表現。

Earlier, I spoke about 2 of our midterm financial targets: organic revenue growth and operating leverage. Return on invested capital is the third financial metric we have put in place and have stated a target of 100 basis point improvement annually. And since the beginning of 2017, we have driven well above a 200 basis point improvement. This performance shows that we have taken actions necessary to make this a meaningful metric for DuPont, and ROIC is now an embedded mindset across the company, which will help drive sustainable earnings growth.

之前，我談到了我們的兩個中期財務目標：有機收入成長和營運槓桿。投資資本報酬率是我們制定的第三個財務指標，我們設定了每年提高 100 個基點的目標。自 2017 年初以來，我們已經取得了超過 200 個基點的進步。這項業績表明，我們已經採取了必要的措施，使投資回報率成為杜邦公司一個有意義的指標，投資回報率現在已成為公司內部根深蒂固的理念，這將有助於推動可持續的盈利增長。

I'll now turn the call over to Ed.

現在我將把電話交給艾德。

Thanks, Jean. I'll provide an update to our strategic priorities on Slide 11.

謝謝你，珍。我將在第 11 頁投影片中介紹我們最新的策略重點。

We are committed to delivering best-in-class performance, and in the quarter, we continued to advance our performance towards these goals. Our focus on innovation continues to accelerate growth from our robust R&D portfolio, as evidenced by our eighth consecutive quarter of pricing growth. We have and we'll continue to invest in innovation even during the weakness we are experiencing in our short-cycle businesses. In fact, our R&D spend as a percentage of sales was held steady at 4% for the quarter, in line with our targets. I am pleased with our cost productivity, including delivering over $100 million in cost synergies in the quarter, leading to 170 basis points of margin expansion. We also continue to execute our portfolio actions and are actively engaged in discussions to sell the businesses within our Non-Core segment. We expect to have made meaningful progress on these divestitures within the calendar year. From a broader perspective, our portfolio presents potential for significant value creation over the long term.

我們致力於提供一流的業績，在本季度，我們繼續朝著這些目標邁進。我們對創新的持續關注，推動了我們強大的研發組合的成長，這已連續第八個季度實現價格增長，足以證明這一點。即使在我們短期業務面臨疲軟時期，我們也一直並將繼續投資於創新。事實上，本季我們的研發支出佔銷售額的比例維持在 4%，符合我們的目標。我對我們的成本效益感到滿意，包括本季度實現了超過 1 億美元的成本協同效應，從而使利潤率提高了 170 個基點。我們也將繼續執行我們的投資組合操作，並積極參與出售非核心業務板塊的討論。我們預計在本年度內，這些資產剝離工作將取得實質進展。從更廣泛的角度來看，我們的投資組合具有在長期內創造巨大價值的潛力。

I am pleased with the organization's focus on driving free cash flow and improving ROIC. We recently issued a performance grant to members of our leadership teams, which has ROIC improvement as a key metric in the payout. Integral to achieving this goal is effective capital allocation, and our commitment to this priority is evidenced by our completion year-to-date of $250 million of share repurchases under our $2 billion plan. I can assure you that the organization will stay focused on its top strategic priorities with the ultimate goal of creating shareholder value.

我對公司致力於提高自由現金流和改善投資回報率的做法感到滿意。我們最近向領導團隊成員發放了績效獎金，其中 ROIC 提升是獎金發放的關鍵指標。實現這一目標的關鍵在於有效的資本配置，而我們對這一優先事項的承諾體現在我們今年迄今已根據 20 億美元的計劃完成了 2.5 億美元的股票回購。我可以向你們保證，公司將繼續專注於最重要的策略重點，最終目標是創造股東價值。

I'll now turn it to Lori to open the Q&A.

現在我把麥克風交給洛莉，讓她開始問答環節。

Thank you, Ed. With that, let's move on to your questions. First, I would like to remind you that our forward-looking statements apply to both our prepared remarks and the following Q&A. Please, provide the Q&A instruction.

謝謝你，艾德。那麼，接下來我們來回答您的問題。首先，我想提醒各位，我們的前瞻性聲明適用於我們準備好的發言稿和接下來的問答環節。請提供問答環節的說明。

(Operator Instructions) And we will take our first question from Vincent Andrews of Morgan Stanley.

（操作員說明）我們先來回答摩根士丹利的文森安德魯斯提出的問題。

This is Angel Castillo on for Vincent. Just a quick question around your back half expectations. So you guys had talked about the 3Q guidance but just looking at what that implies for 4Q. It looks like it's a pretty sharp improvement in E&I for the fourth quarter and then also some improving trend in T&I even though third -- 3Q guidance seems to be getting worse sequentially. So just curious as to what's actually embedded in the back half. How derisked you feel it is and just how -- maybe how dependent it is on trade resolution.

這是安赫爾·卡斯蒂略替補文森特上場。我有一個關於你對下半場表現的預期的小問題。你們之前討論過第三季的業績指引，但現在讓我們來看看這對第四季意味著什麼。第四季 E&I 似乎有相當大的改善，T&I 也呈現出一些改善趨勢，儘管第三季的業績指引似乎較上季惡化。我只是好奇背面到底嵌著什麼。你覺得風險降低了多少？以及——或許——它對貿易談判結果的依賴程度有多高？

Yes. Thanks for the question. Now let me give you a little bit of an overview and then let me turn it over to Marc for a little bit more detail.

是的。謝謝你的提問。現在我先給大家做一個簡單概述，然後把細節交給馬克來詳細介紹一下。

The difference by way just high level between the first half of the year and the sequencing through the year is the first half and second half sales are virtually flat in our planning. They're up just very, very slightly. And don't forget the fourth quarter, we have an easier comp because our businesses dropped off last year. So we'll have more positive organic growth in the fourth quarter. Still negative in the third, but that's an easier comp. So if you actually look at the sequence in what we're saying. We're counting on the same soft -- short-cycle markets staying down the rest of the year, which is basically the E&I plate businesses, the T&I stuff and, in E&I, the semiconductor businesses. So we're not counting on any improvement happening from that standpoint, so we're planning our cost structure and our business actions around that. But Marc, why don't you give a little more detail on that?

今年上半年與全年其他時間安排的主要區別在於，根據我們的計劃，上半年和下半年的銷售額實際上持平。它們只是略微上漲了一點。別忘了第四季度，由於去年業務下滑，我們的業績比較容易比較。因此，第四季我們將迎來更多積極的內生成長。第三場依然是負分，但這場比賽比較容易比較。所以，如果你仔細看看我們所說的內容順序。我們指望同樣的疲軟——短期週期市場在今年餘下的時間裡保持低迷，這基本上是指電子和工業板材業務、運輸和工業相關業務，以及電子和工業領域的半導體業務。因此，我們不指望這方面會有任何改善，所以我們正在圍繞這一點來規劃我們的成本結構和業務行動。馬克，你為什麼不詳細說這件事？

Yes. Thanks, Ed. And yes, just to build on what Ed said, there is a couple of sequential changes, I mean, there's a slight improvement in E&I that's really driven by the premium smartphone market, as we said, last quarter. As launches happen in the second half, we'll see some additional sales. We're pretty confident with that. The orders started to pick up in the second quarter, and some of that is leading to a slight improvement in the back half for E&I. And then you asked about the trade resolution. We're not assuming that there's any change in the trade environment. So for our second half outlook, we're sort of staying the course here on the current situation.

是的。謝謝你，艾德。是的，正如 Ed 所說，還有一些連續的變化，我的意思是，E&I 略有改善，這實際上是由高階智慧型手機市場推動的，正如我們上個季度所說。隨著下半年新品上市，我們將看到一些額外的銷售。我們對此相當有信心。第二季訂單開始回升，其中一些因素導致 E&I 在下半年略有改善。然後你問到了貿易決議的問題。我們並不認為貿易環境會有任何改變。所以對於下半年的展望，我們基本上會維持現狀。

Okay. That's very helpful. And just the other question I had is with -- on cost cutting. So you guys talked about the $80 million here in the second half. How sustainable are these costs? Or if things improve, are these costs going to come back? Or how should we think about that?

好的。那很有幫助。我還有一個問題，是關於削減成本的。你們之前討論過下半年的8000萬美元。這些成本可持續嗎？或者，如果情況好轉，這些成本會不會再出現？我們該如何看待這個問題？

Yes. Probably a couple of comments on that. I think we're looking at that these costs as more permanently out of the system. So we did $30 million in the second quarter, and Marc and the team are doing another $80 million in the second half, as I think Jean said, biased more -- Marc said biased more towards the fourth quarter by the time they kick in.

是的。可能還有幾點要說明。我認為我們正在考慮將這些成本永久地從系統中剔除。所以我們在第二季度賺了 3000 萬美元，馬克和他的團隊在下半年又賺了 8000 萬美元，正如讓所說，馬克說，他們更傾向於在第四季度開始發力。

I'd also like to highlight for you a comment that Jean did make. We are not touching R&D if we're -- just because we're seeing a little short-term softness. We're going to run the R&D around 4%, maybe just slightly above 4%, which is exactly aligned with all the detailed plans of the -- that the team has. And I think that's really important. We're not going to clip our future growth prospects just because of a little weakness on short term.

我還想特別提一下Jean的一則評論。即使我們看到短期內市場略有疲軟，我們也不會動用研發經費。我們將把研發投入控制在 4% 左右，也許略高於 4%，這與團隊的所有詳細計畫完全一致。我認為這非常重要。我們不會因為短期內出現一些小疲軟就削弱我們未來的成長前景。

And our next question will come from Jeff Sprague with Vertical Research.

接下來，我們將向 Vertical Research 的 Jeff Sprague 提問。

Two questions from me. I want to pick up on the margins and then also thinking about cash flow. So the gross margin performance was very solid, impressive. Just picking up on the prior point a little bit, Ed or Marc. Just thinking about synergies versus kind of ongoing cost actions, how that mix might change. Are synergies kind of starting to run their course, tail off? And we might -- and might we see kind of more kind of restructuring actions of this ilk going forward even in the face of perhaps better macro trends, say, into 2020?

我有兩個問題。我想關注利潤率，同時也要考慮現金流。因此，毛利率表現非常穩健，令人印象深刻。艾德或馬克，我只是想稍微補充一下前面的觀點。我只是在思考綜效與持續成本控制措施之間的關係，以及這種組合可能會如何改變。綜效是不是開始逐漸減弱了？我們或許會看到──即便在宏觀趨勢可能好轉的情況下，例如到 2020 年，我們或許還會看到更多類似的重組行動？

Yes. Jeff, this is Marc. I'll take that. I mean yes, what we'll be seeing is -- I mean, take 2Q as an example. We still delivered about $100 million in synergies. That will be happening through the end of the year here. But we also delivered productivity on top of that, as Ed said, about $30 million. We'll see more productivity and less synergy going into 2020. And we've already teed up a number of areas that we intend to focus on, and so you'll see us talking more about that on a going-forward basis. The synergy program will end early next year. We'll deliver the last portion of that.

是的。傑夫，這位是馬克。我接受。是的，我們將會看到──以第二季為例。我們仍然實現了約 1 億美元的協同效應。這種情況將持續到今年底。但正如艾德所說，除此之外，我們還實現了生產力提升，約 3000 萬美元。進入2020年，我們將看到生產力提高，但綜效降低。我們已經確定了一些我們打算重點關注的領域，所以接下來你會看到我們更多地談論這些領域。協同增效計畫將於明年初結束。我們會交付最後一部分。

One of the big areas that the team has focused on, to Marc's point about going in the future, is we have, as you know, a factory efficiency program going on, productivity there, which is pretty big for DuPont with some of the large facilities we have. And a big part of that emanates in our S&C business, which has our bigger, tougher facilities. And as you can see, during this past year, the team has made really good progress in that business, and we were up almost 700 basis points in that business over the last year. And again, great progress in the quarter there. A lot of that is -- we are getting pricing in that business, but we are seeing some volume growth. But really underlying that is really tremendous progress on that productivity on the factory footprint. So that's a big thing. And by the way, it's just not that. This happens to be the biggest opportunity. Marc's got a program with the team across all the businesses when it comes to that factory efficiency.

正如馬克所說，展望未來，團隊關注的一個重要領域是，正如你所知，我們正在進行一項工廠效率提升計劃，提高生產率，這對於擁有一些大型工廠的杜邦公司來說意義重大。而這很大程度源自於我們的體能訓練業務，該業務擁有更大、更堅固的設施。正如你所看到的，在過去的一年裡，團隊在該業務領域取得了非常好的進展，我們在過去一年在該業務領域提高了近 700 個基點。再次強調，該季度取得了巨大進展。很多時候，我們在定價上遇到了困難，但銷售量卻有所成長。但真正促成這項結果的是工廠佔地面積和生產效率的巨大進步。所以這可是件大事。順便說一句，事情並非如此。這恰恰是最大的機會。馬克與團隊合作，針對所有業務部門制定了提高工廠效率的計畫。

And we will take our next question from Steve Byrne of Bank of America.

接下來，我們將回答來自美國銀行的史蒂夫·伯恩提出的問題。

I wanted to ask you about where you're seeing revenue synergies within your businesses. And is there potential for any more tailwind from this as we move forward?

我想問你們，在你們的業務中，哪些方面實現了收入綜效。隨著我們不斷向前發展，這是否還有可能帶來更多利多因素？

Yes. Yes, Stephen, let me take that. It's Marc. Yes, what we've said from last year is that there are opportunities across the portfolio. The revenue synergies take a little bit longer to build due to qualification timing. There are some launches that have been happening this year. For example, some of the plant-based meat offerings, cellulosics, things like that are coming out of the new cellulosics portfolio. That was the combination of Dow and FMC. We did a beta launch of a smart materials offering around smart conference tables. That was also a Dow plus DuPont integrated offering. And so you'll see more and more of those launches. We've sized the opportunity for revenue synergies at around about $400 million EBITDA, but we said it would be 3 to 5 years out. So the way I think of it is it's a growth kicker but at just a portion of the 3- to 5-year growth objective. And it's really localized to those overlaps that exist in each of the segments actually if you look at the way we've put Dow and DuPont together.

是的。是的，史蒂芬，讓我來吧。是馬克。是的，我們去年就說過，整個投資組合中都存在著機會。由於資格認定需要一定時間，因此收入綜效需要更長時間才能顯現。今年已經有一些產品發表。例如，一些植物肉產品、纖維素產品等都來自新的纖維素產品組合。那是陶氏化學和富國銀行的合併。我們針對智慧會議桌推出了一系列智慧材料產品，並進行了測試版發布。那也是陶氏化學和杜邦的聯合產品。因此，你會看到越來越多的此類發射。我們估計，收入綜效的機會約為 4 億美元 EBITDA，但我們說過，這需要 3 到 5 年的時間才能實現。所以我認為，它能促進成長，但只能達到 3 到 5 年成長目標的一部分。實際上，如果你看看我們是如何將陶氏和杜邦整合在一起的，你會發現它實際上只局限於每個細分市場中存在的重疊部分。

And we will take our next question from John McNulty of BMO Capital markets.

接下來，我們將回答來自 BMO 資本市場的 John McNulty 提出的問題。

This is (inaudible) for John. As you think about the strategic opportunities to create value in the portfolio, do you think the macro weakness may facilitate even more options? Or does it potentially give you optionality if you choose to preserve your balance sheet?

這是給約翰的（聽不清楚）。在思考如何透過策略機會為投資組合創造價值時，您認為宏觀經濟疲軟是否會帶來更多選擇？或者，如果您選擇保持資產負債表的良好狀態，它是否會為您帶來一些選擇？

I think -- this is Marc. I'll kick it off and then I'm sure Ed will add something. I think current macro is probably not the biggest driver for the opportunity here. I think if you look at the strength of each of these businesses in the portfolio and the opportunities to potentially look for either M&A or other transactions down the road, that we see plenty of opportunities across the board. Will the current macro drive more of that activity in the future? Hard to say.

我想——這是馬克。我先拋磚引玉，然後我相信艾德會補充一些內容。我認為當前的宏觀經濟情勢可能並非此機會的最大驅動因素。我認為，如果你審視投資組合中每家企業的實力，以及未來可能進行的併購或其他交易機會，我們會發現各個領域都有許多機會。當前的宏觀經濟情勢未來是否會推動更多此類活動？很難說。

Yes, I'm with Marc. I don't think the macro -- or if it's soft or not, I don't think it has any bearing on the strategic moves we would make whatsoever. If you make the right strategic moves, you're going to create value, so I don't take into account. I would say, as Jean mentioned, though, just to highlight on your portfolio comment, feel good about the progress we're making on the Non-Core front, and that will be cash coming into the company that we can deploy in a very smart way. And every metric practically improves as we exit the Non-Core businesses, whether it's revenue growth rate, margins, ROIC. So we'll really focused the team on really getting those transactions moving along quickly.

是的，我同意馬克的觀點。我不認為宏觀經濟——或者說，無論經濟情勢是好是壞——會對我們採取的任何戰略舉措產生任何影響。如果你採取正確的策略舉措，你就能創造價值，所以我並不考慮這一點。正如 Jean 所提到的，我想強調你對投資組合的評論，我對我們在非核心業務方面取得的進展感到滿意，這將為公司帶來現金流，我們可以以非常明智的方式進行部署。隨著我們剝離非核心業務，幾乎所有指標都得到了改善，無論是收入成長率、利潤率還是投資回報率。因此，我們將集中團隊力量，加快這些交易的進行速度。

Yes. Let me just build on Ed's comment. That's a good point on Non-Core. We do get questions about whether market conditions and potentially softening would impact the value that we get for some of those divestitures, and I can tell you we're obviously well into things here. We're not seeing any issues there so far. The assets that we're putting up for sale are good products lines, businesses. There is strong interest in everything that we're rolling with here. So we're feeling pretty good about the cash generation potential.

是的。我只想補充一下 Ed 的評論。關於非核心部分，你說得很有道理。我們經常會收到這樣的問題：市場狀況以及潛在的疲軟是否會影響我們從某些資產剝離中獲得的價值，我可以告訴你，我們顯然已經在這方面取得了很大進展。目前我們還沒有發現任何問題。我們出售的資產包括優質產品線和企業。大家對我們正在推進的所有專案都非常感興趣。所以我們對現金流生成潛力感覺相當樂觀。

And our next question will come from Jonas Oxgaard with Bernstein.

接下來，我們將向伯恩斯坦的喬納斯·奧克斯加德提出一個問題。

I have a pretty high-level question, if you don't mind. With the trade war, there seems to be some, I don't know, idiosyncratic effect. Like maybe smarter people than me foresaw that the trade war lingering would cause automotive demand to drop, but I certainly didn't see that happening. And so as the trade war keeps going, are there other what I'll call idiosyncratic effects that you're seeing already or that you're worrying about? Or conversely, are there effects that could actually be positive for you?

如果您不介意的話，我有一個比較高深的問題。貿易戰似乎產生了一些，我不知道該怎麼形容，特殊的影響。或許比我聰明的人早就預見貿易戰持續下去會導致汽車需求下降，但我肯定沒想到這種情況會發生。隨著貿易戰的持續，您是否已經看到或擔心其他一些我稱之為特殊影響的現象？或者反過來說，是否存在一些實際上可能對你有利的影響？

Yes. Yes, good question, Jonas. I think it was hard to predict. And I wouldn't say automotive demand weakening was all about the trade war, but clearly that's a factor. There are multiple factors, I think, if you read some of the industry reports.

是的。是的，問得好，喬納斯。我覺得很難預測。我不會說汽車需求疲軟完全是貿易戰造成的，但這顯然是一個因素。我認為，如果你閱讀一些行業報告，你會發現其中有很多因素。

The other industry that clearly there are some interesting dynamics is around the electronics industry, a lot of the headlines you read about the Chinese semiconductor industry and Chinese OEMs and U.S. suppliers. And I think we're relatively well positioned. We have a lot of our production local. We've been positioned in Asia for quite some time, both in our automotive and our electronics product lines. But we have to continue to watch those dynamics in U.S.-China relationship and how those might affect the competitiveness of U.S. companies on the ground there.

另一個明顯存在一些有趣動態的產業是電子產業，你常會讀到關於中國半導體產業、中國OEM廠商和美國供應商的新聞報導。我認為我們處於相對有利的地位。我們的許多生產環節都在本地進行。我們在亞洲市場佈局已有一段時間，無論是汽車產品線還是電子產品線。但我們必須繼續關注美中關係的這些動態，以及這些動態可能如何影響美國公司在中國的競爭力。

And we will take our next question from Christopher Parkinson with Crédit Suisse.

接下來，我們將回答來自瑞士信貸的克里斯多福·帕金森所提出的問題。

So the N&B segment now can just be a bright spot with a few exceptions like bioactives, which was well expected. Can you just walk us through the puts and takes that you saw for the quarter, including the capacity constraint issue in Pharma Solutions? And then also, just if you can walk us through your long-term thoughts on the potential mix benefits from growing probiotics, pharma and cultures at a faster clip than the rest of the portfolio. Just any your comments on how that could affect your margin outlook for '20 and '21 would be appreciated.

因此，除了生物活性成分等少數例外情況外，營養與生物製劑領域現在可能是個亮點，這也在意料之中。能否請您詳細介紹本季您看到的買賣情況，包括醫藥解決方案的產能限制問題？另外，能否請您談談您對以比其他產品組合更快的速度發展益生菌、製藥和培養物所帶來的潛在組合效益的長期看法？如果您能就此對2020年和2021年利潤率預期產生任何影響，我們將不勝感激。

Yes. I'll take your second part and Marc can also add on the first part. You've been watching for a good 3 years now margin expansion every single quarter in the -- with what was N&H and now it's N&B but generally those sets of businesses. We've had margin expansion every single quarter except one. So there's like 15 quarters in a row, 1 we had a little bit of a blip. So a pretty good track record. And when you really dig into the detail -- by the way, obviously, we've had organic growth that's helped us. Our team has been very cost conscious on the G&A side, so they've done a great job on that. There was a fair amount of synergies in that business because of the Dow stuff and FMC coming in, so they're doing a great job on that. But if you actually do the waterfall chart, the biggest impact is actually your comment you're making or your question. It's been a rich enrichment story, and that should play out just a little bit in the next couple years. So I mean, by the way, I think if you do a compare of our businesses to the core competitors, our margins are fairly best in class unless you take an isolated probiotic player or something like that. But we still think we have room to drive them up more towards the company average and be consistently up there. So -- but the biggest part we'll get as we go forward is that mix piece, as what you said. It's pharma, it's probiotics and a couple of those pieces. But Marc, why don't you get into the puts and takes and what can happen in the second half?

是的。我來負責你的第二部分，馬克也可以補充第一部分。過去三年，你一直在關注利潤率在每個季度都在擴張——以前是 N&H，現在是 N&B，但總的來說，這些業務組合都是如此。除了一個季度外，我們每個季度的利潤率都在成長。所以連續15個季度都保持良好狀態，只有一個季度出現了一點小波動。所以，他的過往業績相當不錯。當你真正深入了解細節時——順便說一句，很顯然，我們的自然增長對我們有所幫助。我們的團隊在一般及行政費用方面一直非常注重成本控制，所以他們在這方面做得很好。由於陶氏化學和富國銀行的加入，該業務產生了相當大的協同效應，所以他們在這方面做得很好。但如果你真的畫了瀑布圖，那麼影響最大的其實就是你的評論或問題。這是一個內容豐富的成長故事，未來幾年應該會略有體現。所以我的意思是，順便說一句，我認為如果你把我們的業務與核心競爭對手進行比較，除非你單獨拿益生菌企業之類的公司來說，否則我們的利潤率是同類最佳的。但我們仍然認為我們還有提升空間，使它們更接近公司平均水平，並持續保持在公司平均水平以上。所以——但正如你所說，我們接下來將要獲得的最大部分是混合部分。它涉及藥品、益生菌以及其他一些方面。但是馬克，為什麼不談談下半場的投注和投注情況，以及可能發生的事情呢？

Yes. Thanks, Ed. Yes, let me give you a little bit more on the first question. So the positive, the bright spots for N&B in the quarter clearly, as Ed mentioned, probiotics, back to double-digit growth. We announced also some pretty significant investments, both in capacity and new product launches, during the quarter, some additional R&D partnerships with other companies. So we're clearly doubling down to continue that long-term growth trajectory. And as Ed mentioned, that's a great mix enricher for margins in the long run.

是的。謝謝你，艾德。是的，關於第一個問題，我再補充一些內容。因此，N&B 本季的正面，正如 Ed 所提到的，益生菌業務明顯恢復了兩位數的成長。本季度，我們也宣布了一些相當重要的投資，包括產能和新產品發布方面的投資，以及與其他公司的一些額外的研發合作關係。因此，我們顯然正在加倍投入，以繼續保持長期成長勢頭。正如 Ed 所提到的，從長遠來看，這是一個很好的組合，可以提高利潤率。

I'd mention also the microbial business was back up mid-single digits in the quarter. That was good to see. And obviously, the plant-based meat trend is a fantastic one, and I think we're pretty well positioned in that market. We're working hard to be the R&D partner of choice for the companies in that space. It's a small business today. It's also a mix enricher. The margins in that space are higher than the average margins in the segment. So that's going to be a good long-term growth driver.

我還想提一下，微生物業務在本季恢復了中等個位數的成長。看到這個真好。顯然，植物肉的趨勢非常棒，我認為我們在這個市場上的地位相當不錯。我們正努力成為該領域公司首選的研發合作夥伴。如今它還是一家小企業。它還具有增稠劑的作用。該區域的利潤率高於該細分市場的平均利潤率。所以這將成為長期成長的良好驅動力。

On the other side of the coin, I'd say clearly, the industrial enzymes business continues to have some market struggles. Bioethanol continues to be a really tough market. And so that's one that we're looking to, to hopefully get through during the course of the year and maybe see a recovery in 2020.

另一方面，我可以很肯定地說，工業酵素業務仍然面臨一些市場困境。生物乙醇市場仍競爭激烈。所以，這是我們今年希望能夠克服的難關，並可能在 2020 年看到復甦。

Nearer term, we had some weakness in the quarter in pharma, which was really driven by capacity issues primarily. And so we do expect in the second half we'll see the pharma business back to the usual at least low single-digit growth. The market demand there is strong. It's a good long-term market.

短期來看，本季醫藥產業表現疲軟，主要是由於產能問題造成的。因此，我們預計下半年醫藥產業將恢復到通常的個位數低成長水準。當地市場需求強勁。這是一個長期來看前景良好的市場。

We also had a little bit of weakness in the system solutions business because of weather in the quarter, and we think that will pass. We think Food & Beverage will be back up to low single digit in the second half.

由於本季天氣原因，我們的系統解決方案業務也出現了一些疲軟，但我們認為這種情況會過去。我們認為下半年食品飲料產業的成長率將回升至個位數低點。

And so that's kind of a rundown product-by-product.

以上就是每個產品的簡要介紹。

And our next question will come from David Begleiter with Deutsche Bank.

接下來，我們將向德意志銀行的大衛‧貝格萊特提問。

Marc, just on Safety & Construction, a very strong first half, really good results. But you did call out maybe a weaker back half and you're constrained in capacity in Tyvek and aramids. So given -- I know you're on capacity going forward. But given those dynamics, how should we think about safety in 2020? Maybe a little bit slower growth and slashed margins? Or can you drive price to drive higher results?

馬克，就安全與建築領域而言，上半年表現非常出色，取得了非常好的成績。但你確實指出後半部可能比較薄弱，而且你在泰維克和芳綸的產能也有限。有鑑於此——我知道你們接下來的工作量已經飽和了。但鑑於這些動態，我們該如何看待 2020 年的安全問題？或許成長速度會稍慢一些，利潤率也會下降？或者，你可以透過提高價格來獲得更高的業績嗎？

Yes. Thanks, David. It's a great question. FMC is obviously firing on all cylinders. As we said, the margin expansion, which the team has been working on for several years, is coming through. We're seeing great demand in the water business, great demand in the safety business. The only weakness is residential construction in the U.S., and we do expect at some point that's going to come back. And so we're really bullish here.

是的。謝謝你，大衛。這是一個很好的問題。FMC顯然正在全力運作。正如我們所說，團隊多年來一直致力於擴大利潤率的目標正在實現。我們看到水務業和安防業的需求都很旺盛。唯一的弱點是美國的住宅建設，但我們預計這種情況在某個時候會好轉。所以我們對此非常看好。

The second half, a bit of a sequential softening. The primary factor there, I'd say, is that we've got some PMMAs, which are the big plant turnarounds. The Safety & Construction business has some sizable sites, and so when those come up for the once-every-couple-of-year shutdowns, that leads to a slug of cost.

後半部分節奏稍緩。我認為主要因素是我們有一些 PMMA，這是大型工廠的檢修項目。安全與建築業務部門擁有一些規模較大的場地，因此，當這些場地每隔幾年就要進行一次停工檢修時，就會產生一大筆費用。

I'd say we're also being a little bit cautious in the outlook. Demand has been booming. Pricing is strong right now. We just don't want to assume that that's going to continue forever. But as we look to 2020, I think we're real positive on the continued growth in that business. The market drivers there, which are clean water, which are worker safety, good exposure to markets like aerospace and defense, I mean, those are all real strong spaces globally right now. So the exposure there on the market side is definitely a positive.

我認為我們對前景也持謹慎態度。需求一直非常旺盛。目前價格走勢強勁。我們只是不想假設這種情況會永遠持續下去。但展望 2020 年，我認為我們對該業務的持續成長非常樂觀。那裡的市場驅動因素包括清潔用水、工人安全以及航空航太和國防等市場的良好前景，我的意思是，這些目前都是全球非常強勁的領域。因此，從市場角度來看，這無疑是件好事。

And our next question will come from Bob Koort with Goldman Sachs.

下一個問題來自高盛的鮑伯·庫爾特。

This is Dylan Campbell on for Bob. Last quarter, you guys kind of broke out your key planning assumptions assuming global automobiles were up 4% in the second half, smartphone deliveries were up 2% in the second half. With the new guidance today, I mean, do you guys see any changes to those assumptions? And kind of what do you have embedded in your guidance?

這裡是迪倫坎貝爾替鮑伯報道。上個季度，你們公佈了關鍵的規劃假設，假設全球汽車銷售在下半年成長 4%，智慧型手機出貨量在下半年成長 2%。根據今天發布的新指導方針，你們認為這些假設會有任何變化嗎？那麼，你的指導原則中都包含哪些內容呢？

Yes. Just -- by the way, just hit that, Marc; or Jean, jump in also. So the areas we talked about before, the 3 soft areas I just -- 3 -- there's -- obviously, residential construction is down. But putting those piece aside, it's really the semi business is a little soft. The auto business is soft. And E&I business was soft because of smartphones. So the planning is that autos are still down globally 5%, and we're saying no improvement in the second half of the year. By the way, it really looks like inventories in autos around the world, including China, are pretty much getting back to about normal levels. So that's finished goods inventory. But we still think the supply chain, as Jean mentioned, does still have some months to go to make sure that gets cleaned up.

是的。對了，馬克，你就上吧；或者讓，也上來。所以，我們之前討論過的領域，我剛才提到的3個軟領域──3──很明顯，住宅建設正在下降。但撇開這些不談，半導體產業其實有點軟弱。汽車產業形勢疲軟。由於智慧型手機的普及，電子和儀表業務表現疲軟。因此，目前的計劃是全球汽車銷售仍將下降 5%，我們認為下半年不會有任何改善。順便說一句，看起來世界各地的汽車庫存，包括中國的汽車庫存，都已基本恢復到正常水平。以上是成品庫存。但我們仍然認為，正如 Jean 所提到的，供應鏈還需要幾個月的時間才能徹底清理。

And then on the smartphone side, as Marc had commented on, we actually saw the improvement or see an improvement in the orders, we think, but it's not because global demand is up in smartphones. It's actually down. It's that we're driving extra content. And we are seeing those orders -- we did see those orders begin in the second quarter mostly for the content we put in on the 5G side. So that's kind of the planning assumption on those 2 big areas. And we're expecting no improvement in the soft conditions on the semi side kind of for the rest of the year.

至於智慧型手機方面，正如馬克評論的那樣，我們確實看到了訂單量的改善，但這並不是因為全球對智慧型手機的需求上升了。它實際上已經宕機了。關鍵在於我們要增加額外內容。我們看到這些訂單——我們確實在第二季度看到了這些訂單，主要是關於我們在 5G 方面投入的內容。所以，這就是這兩個大領域的規劃假設。我們預計今年剩餘時間裡，半拖車側的鬆軟路面狀況不會有所改善。

Therefore, by -- back to my comment a few questions ago, we're planning kind of revenue flat, first half and second half, in the company. I think that's a good planning assumption. So we don't overspend. We watch our cost controls and all that.

因此，回到我前幾個問題中的評論，我們公司計劃上半年和下半年的收入保持穩定。我認為這是一個很好的規劃假設。這樣我們就不會超支。我們會密切注意成本控制等等。

And let me just build on -- Don (sic) [Dylan], on Ed's comment. Ed mentioned auto, smartphones. Semiconductor, we have revised the full year planning assumptions. So we were saying early this year that it would be sort of low single-digit MSI growth. We're now expecting that that's going to be down a bit. And that's just consistent with what we're seeing in the market, particularly in memory. Memory prices are way down. Volumes are down. The Korean semiconductor market has been really soft here in the second quarter, and that's impacting our materials sales. Even as we're investing in next-gen qualifications aggressively in semi for advanced node products, the total volume is just down by a few percent, which is different than we expected starting the year. And so those are really the primary areas that we've revised our full year expectations.

讓我補充一下——唐（原文如此）[迪倫]，關於艾德的評論。艾德提到了汽車和智慧型手機。半導體產業，我們已修訂了全年規劃假設。所以我們在今年年初就說過，MSI 的成長幅度會是較低的個位數。我們現在預計這個數字會略有下降。這與我們在市場上，尤其是在記憶體領域看到的情況完全一致。內存價格大幅下降。成交量下降。韓國半導體市場在第二季表現疲軟，影響了我們的材料銷售。儘管我們正在大力投資下一代先進節點半導體產品的認證，但總銷量僅下降了幾個百分點，這與我們年初的預期有所不同。因此，這些是我們調整全年預期的主要領域。

And our next question will come from Josh Spector with UBS.

接下來，我們將向瑞銀集團的 Josh Spector 提問。

Just a clarification around free cash flow. When you guys gave prior guidance, you were talking about pension costs around $200 million in cash, restructuring around $300 million. I guess Slide 10 has a couple buckets kind of similar size, adding $500 million. Is that incremental to what you were thinking before? So more cash use? Or is that the same numbers that you were expecting?

關於自由現金流，我需要澄清一下。你們先前給予的指引中提到，退休金成本約 2 億美元現金，重組成本約 3 億美元。我猜第 10 張投影片裡有幾個大小差不多的桶，總共增加了 5 億美元。這和你之前的想法相比有什麼不同嗎？所以現金使用量會增加？或者，這和你預期的數字一樣嗎？

Yes. No, those are actually the same numbers we were expecting. That's just pointing to the outflow in the second half of the year. So I wouldn't say we've had any substantial change to our view of free cash flow for the year, which, as we've noted before, is primarily a lot of our free cash flow for 2019 is -- was setting up the capital structures for the 3 new companies. So just providing color on the second half.

是的。不，這些數字和我們預期的一樣。這正好顯示下半年資金將流出。因此，我不會說我們對今年的自由現金流的看法發生了任何實質性變化，正如我們之前指出的那樣，我們 2019 年的大部分自由現金流主要用於為 3 家新公司建立資本結構。所以只是為後半部分增添一些色彩。

And our next question will come from P.J. Juvekar with Citi.

接下來，我們將向花旗銀行的 P.J. Juvekar 提出問題。

Marc, with autobuilds declining globally, would you say that your decline was in line with the global market or was it better or was it worse? And then secondly, I think you talked about polymer inventories in auto-related supply chain was high. When do you see that clearing up? And if autos remain weak in the second half, is there potential more downside?

馬克，鑑於全球汽車產量都在下降，你認為你的產量下降與全球市場整體水準一致嗎？還是比全球市場好，還是更糟？其次，我想您曾提到汽車相關供應鏈中的聚合物庫存很高。你覺得這種情況什麼時候會好轉？如果汽車產業在下半年依然疲軟，是否還有進一步下跌的空間？

Yes. Thanks, P.J. It's great questions. I mean the auto market is down. We think we're down about in line on a revenue basis, maybe a little higher on a volume basis. We think that's the destocking that's been happening, but we're watching it closely. And at the end of the day, these numbers are approximates, so within 1% or so. We think we're roughly in line.

是的。謝謝，P.J.，問得好。我的意思是汽車市場低迷。我們認為，從收入角度來看，我們的業績基本上符合預期；從銷售角度來看，可能略高一些。我們認為這就是正在發生的去庫存行為，但我們正在密切關注。歸根究底，這些數字都是近似值，誤差在 1% 左右。我們認為我們大致符合預期。

Going into the second half, yes, we are expecting -- as Ed said, the end market auto inventory seem to be in a decent place, at least certainly in China where the concerns have been. We are still seeing potential for some further destocking in the channel. We think that that's going to continue here certainly through 3Q. A little bit hard to see beyond 3Q on what's going to happen, but we have built into the plan that the 4Q volumes will be down not quite as much as the first 3 quarters of the year. So that's kind of the expectation at this point.

進入下半年，是的，我們預計——正如艾德所說，終端市場汽車庫存似乎處於一個不錯的水平，至少在中國——人們一直擔憂的地方——肯定如此。我們仍然看到該渠道存在進一步去庫存的潛力。我們認為這種情況至少會持續到第三季。很難預測第三季之後的情況，但我們的計劃是，第四季的銷售下降幅度不會像今年前三個季度那麼大。所以目前來看，這大概就是大家的預期。

And I would just say that through all of this, we're continuing to focus on where we see the real growth and bright spots. Auto electrification continues to be a great space that's seeing continued growth off of a relatively low base on car builds, but it's a bigger and bigger part of our portfolio. And so during the quarter, we had a couple of new design wins and new product launches around Zytel formulations specifically in that space. We're continuing to invest in the businesses, collaborating between S&C, E&I and T&I around auto electrification qualifications. And so we're seeing that as a real growth driver certainly for the future.

我想說的是，在這一切過程中，我們將繼續專注於那些我們看到真正成長點和亮點的地方。汽車電氣化仍然是一個發展前景廣闊的領域，儘管汽車產量基數相對較低，但仍在持續成長，而且在我們投資組合中所佔的份額越來越大。因此，在本季度，我們圍繞 Zytel 配方在該領域贏得了幾個新的設計訂單和新產品發布。我們將繼續投資這些業務，S&C、E&I 和 T&I 部門在汽車電氣化認證方面合作。因此，我們認為這無疑是未來真正的成長動力。

And by the way, just to add one point because Marc, you're talking about the electrification, we would expect, once car inventories, again, we think, are back to about normal, supply chain still working its way through, but once that kind of corrects itself, no matter where autobuilds are at, we really feel confident we'll be back to outpacing autobuilds by kind of 1.5x, which is where historically the company has been running quarter-after-quarter until we went into this destocking mode.

順便補充一點，因為馬克，你談到了電氣化，我們預計，一旦汽車庫存恢復正常（我們認為），供應鏈仍在逐步恢復，但一旦這種情況得到糾正，無論汽車產量如何，我們都非常有信心，我們將再次以大約 1.5 倍的速度超過汽車產量，而這正是公司歷史上每個季度都保持的水平，直到我們進入去庫存模式。

And our next question will come from Arun Viswanathan with RBC Capital Markets.

接下來，我們將向加拿大皇家銀行資本市場的 Arun Viswanathan 提問。

Just curious on the pricing momentum, I guess. Do you expect those gains to kind of continue? You mentioned lapping prior year price increases. How should we think about pricing going forward? And maybe if you can just describe that by segment.

我只是對價格走勢感到好奇。你認為這種成長勢頭會持續下去嗎？您提到了要覆蓋前一年的價格上漲幅度。我們未來該如何看待定價問題？或許你可以按部分來描述一下。

Yes. Why don't I take that? This is Marc. So it's different segment to segment, clearly. We are assuming that we're starting to lap some of the significant price actions in the T&I segment. And we're assuming also in the S&C business we'll start to see a little bit less price in the back half. And so as it nets out, we've been running about plus 2 per quarter, the first half of the year, on price. We think in the second half on a year-over-year basis we'll get down closer to being flat by the end of the year.

是的。我為什麼不拿呢？這是馬克。所以很明顯，各個細分市場的情況都不相同。我們假設我們已經開始跟上T&I板塊的一些重大價格波動。我們預計，在體能訓練產業，下半年的價格也會略有下降。因此，總的來說，今年上半年，我們每季的價格漲幅約為 2%。我們認為，下半年年比來看，到年底我們將接近與去年同期持平。

Now these are planning assumptions. Clearly, it depends very much on the demand environment, and it depends on supply situation. So these things can change relatively quickly.

這些都是規劃假設。顯然，這很大程度取決於需求環境和供應情況。所以這些事情變化可能相對較快。

One of the drivers for pricing for us in T&I has been not just the strong demand but also our very stable, predictable supply situation, particularly in the nylon product lines. And so we've been one of the producers that customers can really count on to continue to deliver. So we'll take advantage of that strong supply capability if there's any further disruptions in supply in the industry and continue to try to drive pricing.

T&I 定價的驅動因素之一不僅是強勁的需求，還有我們非常穩定、可預測的供應情況，尤其是在尼龍產品線方面。因此，我們一直是客戶真正可以信賴的、能夠持續供貨的生產商之一。因此，如果行業供應出現任何進一步中斷，我們將利用強大的供應能力，繼續努力推動價格上漲。

And we will take our next question from Frank Mitsch from Fermium Research.

接下來，我們將回答來自 Fermium Research 公司的 Frank Mitsch 提出的問題。

I was intrigued by the comment regarding China in terms of the declines getting -- the year-over-year declines getting better 2Q versus 1Q. So just curious as to what you're seeing now that the month of July is behind us and what your expectations are in that part of the world. Then also, speaking about the quarter, you called out a customer settlement in Non-Core. What was the order of magnitude to that? Is that included in $0.94 to $0.99 guidance?

我對有關中國經濟下滑的評論很感興趣——第二季度同比下滑幅度比第一季有所改善。我很好奇，七月已經過去，你現在看到了什麼，以及你對世界那個地區有什麼期望。另外，在談到本季時，您提到了非核心業務中的一筆客戶結算款項。那個數值的數量級是多少？這是否包含在 0.94 美元至 0.99 美元的指導價範圍內？

Yes. Frank, let me take the first question then I'll hand the second question over to Jean. It's -- I was laughing a little bit because it's rare that we would be bragging about minus 3% growth in China. I can't remember that happening in a long, long time. But it was a sequential improvement, and it is a little bit of a sign of life. The strength there has been across several of our segments. Most notably, I'd say that E&I was up. Also, S&C continues to be very strong in China.

是的。法蘭克，第一個問題我先回答，第二個問題我交給吉恩。我當時忍不住笑了，因為我們很少吹噓中國經濟成長率為負3%。我很久很久都沒見過這種事了。但這是一個循序漸進的進步，也算是某種程度的生命跡象。這種強勁勢頭體現在我們多個業務板塊。最值得注意的是，E&I 指數有所上升。此外，S&C在中國市場依然非常強勁。

The E&I growth is a statement around the China semi market, which is a bright spot for semi. Also, those orders starting for premium phones and the displays market growth is largely happening in China.

E&I 的成長反映了中國半導體市場的整體狀況，而中國半導體市場是半導體產業的一大亮點。此外，高階手機和顯示器市場的訂單成長主要發生在中國。

On the S&C side, the water business just continues to be booming there, and the team is doing a great job of capturing growth there. That water growth is both in industrial -- sort of water cleanup for industrial operations as well as residential water market in China is really booming. And we've put out a couple of new products in the quarter and have some notable share gains that are continuing that double-digit growth for us. So that's kind of the positive side of the China story right now.

在體能訓練方面，水務業務持續蓬勃發展，團隊在抓住這一增長機會方面做得非常出色。中國的水資源成長體現在工業用水（例如工業用水淨化）和居民用水市場兩個方面，這兩個市場都蓬勃發展。本季我們推出了幾款新產品，市佔率顯著成長，並持續維持兩位數的成長。所以，這算是目前中國故事中比較正面的一面。

And in terms of your question around Non-Core and the guidance for the third quarter, we do have an equity affiliate in Non-Core that has a history of settlements. They're always hard to call when those settlements are going to hit. But you are right, we are thinking that there could be one. There would be one in the third quarter as part of our guidance.

至於您提出的關於非核心業務和第三季業績指引的問題，我們在非核心業務中確實有一家股權關聯公司，該公司有和解記錄。這些和解協議何時生效總是很難預測。但你說得對，我們認為可能確實存在這種情況。根據我們的預期，第三季將會有一項投資。

And our final question will come from Duffy Fischer from Barclays.

最後一個問題來自巴克萊銀行的達菲費雪。

Just want to go back to S&C, if we could. Your guidance in May was kind of up low teens. You ended up high 20s on EBITDA. And at that time, you were thinking you were going to get decent pricing. So I'm just trying to understand what changed from May to the final number that it ended up so much better.

如果可以的話，我們只想回到體能訓練階段。你五月的指導意見大概在十度左右。你的 EBITDA 最終達到了 20% 以上。當時，你還以為能拿到不錯的價格呢。所以我想弄清楚，從五月到最終結果，究竟發生了什麼變化，才讓情況變得如此好轉。

Yes. Good question, Duffy. I mean the bottom line is the 2 biggest segments there, water and safety, both over-delivered in terms of cost actions, productivity actions. And pricing came in a little stronger than expected. So I would say the demand environment wasn't notably different. We knew it will be a strong environment. But the team really executed well around controlling what we could control, driving productivity and then continuing to deliver on the pricing side of the equation. And so it's a good story for the quarter, good execution. Again, second half, we're being a little cautious on some of the things that are a little bit less in our control like the demand and pricing side. But I'm expecting that we're going to keep delivering in S&C, and it'll be a good driver during the second half, too.

是的。問得好，達菲。我的意思是，歸根結底，水務和安全這兩個最大的領域，在成本控制和生產力提升方面都超額完成了任務。定價比預期略高。所以我覺得需求環境沒有顯著改變。我們知道這將是一個競爭激烈的環境。但團隊在控制我們能夠控制的方面做得非常出色，提高了生產力，然後繼續在定價方面保持競爭力。所以，對於本季來說，這是一個不錯的故事，執行得很好。同樣，在下半年，我們對一些我們不太能控制的因素，例如需求和定價方面，會更加謹慎一些。但我預計我們在體能方面會繼續取得好成績，而且在下半年也會是一個很好的推動因素。

Thank you, everyone, for joining our call. For your reference, a copy of the transcript will be posted on DuPont's website. This concludes our call.

感謝各位參加我們的電話會議。供您參考，成績單副本將發佈在杜邦公司的網站上。通話到此結束。

And this concludes today's conference, thank you for your participation, and you may now disconnect.

今天的會議到此結束，感謝各位的參與，現在可以斷開連結了。