杜邦 (DD) 2024 Q1 法說會逐字稿

Good day, and welcome to the DuPont First Quarter 2024 Earnings Call. (Operator Instructions)

美好的一天，歡迎參加杜邦 2024 年第一季財報電話會議。 （操作員說明）

Finally, I would like to advise all participants that this call is being recorded. Thank you.

最後，我想提醒所有參與者，本次通話正在錄音。謝謝。

I'd now like to welcome Chris Mecray to begin the conference. Chris, over to you.

現在我歡迎克里斯·麥克雷開始會議。克里斯，交給你了。

Good morning, and thank you for joining us for DuPont's First Quarter 2024 Financial Results Conference Call. Joining me today are Ed Breen, Chief Executive Officer; and Lori Koch, Chief Financial Officer.

早安，感謝您參加杜邦 2024 年第一季財務業績電話會議。今天和我一起來的還有執行長 Ed Breen；和財務長洛里·科赫(Lori Koch)。

We've prepared slides to supplement our remarks, which are posted on DuPont's website under the Investor Relations tab and through the webcast link. Please read the forward-looking statement disclaimer contained in the slides.

我們準備了幻燈片來補充我們的評論，這些幻燈片已發佈在杜邦網站的「投資者關係」標籤下並透過網路廣播連結發布。請閱讀幻燈片中包含的前瞻性聲明免責聲明。

During this call, we'll 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 uncertainties, our actual performance or results may differ materially from our forward-looking statements. Our Form 10-K, as updated by our current periodic reports, includes detailed discussion of principal risks and uncertainties which may cause such differences.

在這次電話會議中，我們將就我們對未來的期望或預測做出前瞻性聲明。由於這些陳述是基於目前的假設和涉及風險和不確定性的因素，因此我們的實際表現或結果可能與我們的前瞻性陳述有重大差異。我們的 10-K 表（根據當前定期報告更新）包含可能導致此類差異的主要風險和不確定性的詳細討論。

Unless otherwise specified, all historical financial measures presented today are on a continuing operations basis and exclude significant items. We will also refer to other non-GAAP measures. A reconciliation to the most directly comparable GAAP financial measures is included in our press release and presentation materials that have been posted to DuPont's Investor Relations website.

除非另有說明，今天提出的所有歷史財務指標均以持續經營為基礎，不包括重要項目。我們也將參考其他非公認會計原則措施。我們已在杜邦投資者關係網站上發布的新聞稿和簡報資料中包含了與最直接可比較的公認會計準則財務指標的調節。

I'll now turn the call over to Ed.

我現在將把電話轉給艾德。

Good morning, and thank you for joining our First Quarter 2024 Financial Review. Our results for the period exceeded our expectations, driven by better-than-expected volumes in all segments. Broadly, the first quarter confirmed that we are past the bottom in electronics and on the road to recovery. Our Semiconductor Technologies business reported sequential sales growth of 8% in the first quarter and 10% year-over-year, driven by a pickup in the underlying chip demand and normalization of customer inventory levels, both slightly earlier than expected.

早安，感謝您參與我們的 2024 年第一季財務回顧。由於所有細分市場的銷售量都優於預期，我們在此期間的業績超出了我們的預期。總體而言，第一季證實我們已經度過了電子產品的谷底並走上復甦之路。我們的半導體技術業務報告稱，第一季銷售額環比增長 8%，同比增長 10%，這主要得益於基礎晶片需求的回升和客戶庫存水平的正常化，兩者均略早於預期。

In Interconnect Solutions, we saw a second straight quarter of year-over-year volume growth with volumes up 4%. We did, however, continue to see channel inventory destocking, as expected, resulting in year-over-year revenue declines in certain industrial-based businesses, but we believe those conditions have bottomed and our assumed recovery timing is also consistent with our previous expectations. That said, and given first quarter performance, we are raising our full year 2024 guidance for net sales, operating EBITDA, and adjusted EPS. Lori will further detail the outlook shortly.

在互連解決方案中，我們看到銷量連續第二季年增，增幅為 4%。然而，正如預期的那樣，我們確實繼續看到渠道庫存去庫存，導致某些工業業務的收入同比下降，但我們認為這些情況已經觸底，我們假設的複蘇時間也與我們之前的預期一致。也就是說，考慮到第一季的業績，我們將上調 2024 年全年淨銷售額、營運 EBITDA 和調整後每股盈餘的指引。洛里將很快進一步詳細說明前景。

Compared to the year ago period, first quarter reported sales of $2.9 billion declined 3%, operating EBITDA of $682 million declined 4%, and adjusted EPS of $0.79 per share declined 6%. We continue to prioritize working capital and delivered significant year-over-year improvement in cash flow during the quarter. In late April, we completed the $500 million accelerated share repurchase transaction launched in February, retiring a total of 6.9 million shares in this tranche and bringing total share repurchases to over 15% of our outstanding shares since November 2022.

與去年同期相比，第一季銷售額為 29 億美元，下降 3%，營業 EBITDA 為 6.82 億美元，下降 4%，調整後每股收益 0.79 美元，下降 6%。我們繼續優先考慮營運資金，並在本季實現現金流量較去年同期顯著改善。 4 月底，我們完成了 2 月啟動的 5 億美元加速股票回購交易，回購了該批次總計 690 萬股股票，使股票回購總額達到 2022 年 11 月以來已發行股票的 15% 以上。

Turning to Slide 4, I want to reiterate that we remain excited about the growth potential of our businesses, centered around 5 secular high-growth areas. We are excited about the through-cycle strength of our portfolio as end markets recover from recent destocking headwinds, and our teams continue to focus on operational excellence.

轉向投影片 4，我想重申，我們對圍繞 5 個長期高成長領域的業務成長潛力仍然感到興奮。隨著終端市場從最近的去庫存逆風中復蘇，我們對我們的投資組合的整個週期實力感到興奮，並且我們的團隊繼續專注於卓越營運。

Almost 1/3 of sales exposure for our portfolio today is focused on electronics, including leadership positions and strong customer relationships serving semiconductor manufacturing, primarily via consumables used in the chip manufacturing process, as well as serving broader consumer-based electronics markets with films, displays, and printed circuit board materials used in smartphones, PCs, and tablets.

目前，我們產品組合中近1/3 的銷售業務集中在電子產品上，包括服務半導體製造的領導地位和強大的客戶關係（主要透過晶片製造過程中使用的耗材），以及透過薄膜服務更廣泛的消費性電子市場，用於智慧型手機、個人電腦和平板電腦的顯示器和印刷電路板材料。

We are very pleased to participate in the AI-driven growth acceleration within electronics via our semi-related products geared towards advanced node chips for data centers and other key AI applications, such as mobile products. Electronics end markets have positively inflected, and we expect continued volume pickup in both Semi and ICS over the course of 2024. Our Water business at 12% of our portfolio constitutes a broad range of filtration technologies and operates in markets expected to generate strong growth, driven by evolving wastewater regulation and the global response to concerns around water scarcity and circularity. We believe demand for filtration products, which have been impacted by slower project work in the last year and associated distributor destocking has bottomed and will begin to recover later in the second quarter.

我們非常高興透過以資料中心和其他關鍵人工智慧應用（例如行動產品）的先進節點晶片的半相關產品參與電子領域人工智慧驅動的成長加速。電子終端市場已產生正面影響，我們預計Semi 和ICS 的銷售量將在2024 年持續回升。中開展業務，受到不斷發展的廢水監管以及全球對水資源短缺和循環問題的反應的推動。我們認為，受到去年專案工作放緩和相關經銷商去庫存影響的過濾產品需求已經觸底，並將在第二季稍後開始恢復。

We have excellent leadership positions in various end markets within protection and industrial technologies. Within industrial technologies, about 10% of the DuPont portfolio is geared to growing health care markets, including Spectrum medical devices, Tyvek medical packaging and Liveo biopharma consumables. We have seen ongoing solid demand for devices and expect to see recovery in medical packaging beginning later in the second quarter. Biopharma product demand is expected to recover beginning later in the year after bottoming in recent periods.

我們在防護和工業技術領域的各個終端市場中擁有卓越的領導地位。在工業技術領域，杜邦約 10% 的產品組合面向不斷成長的醫療保健市場，包括 Spectrum 醫療設備、Tyvek 醫療包裝和 Liveo 生物製藥消耗品。我們看到對設備的持續強勁需求，並預計醫療包裝將在第二季稍後開始復甦。生物製藥產品需求在近期觸底後預計將在今年稍後開始復甦。

DuPont's next-generation auto market participation constitutes about 10% of total sales and is geared to advanced technologies, enabling secular demand trends for hybrid and electric vehicles within battery, motor and other applications. Demand for our advanced water-related products has remained healthy, and we have a global customer base that includes EV customers in each region. We see excellent longer-term opportunity across our auto-related portfolio.

杜邦公司在下一代汽車市場的參與度約佔總銷售額的 10%，並面向先進技術，推動了混合動力和電動車在電池、馬達和其他應用領域的長期需求趨勢。對我們先進的水相關產品的需求保持健康，我們擁有全球客戶群，其中包括每個地區的電動車客戶。我們在汽車相關投資組合中看到了極佳的長期機會。

With that, let me turn it over to Lori to review our financial performance and outlook.

接下來，讓我將其交給 Lori 來審查我們的財務表現和前景。

Thanks, Ed, and good morning. Our first quarter results were clearly encouraging with further signs of electronics recovery matched with bottoming across our industrial-based end markets. Additionally, our commitment to drive productivity and operational excellence has minimized decremental margins and has helped to produce significant cash flow improvement in recent quarters. Our results have and will continue to benefit from the restructuring actions announced last November.

謝謝，艾德，早安。我們第一季的業績顯然令人鼓舞，電子產品復甦的進一步跡象與我們工業終端市場的觸底相符。此外，我們致力於提高生產力和卓越運營，最大限度地減少了利潤下降，並有助於在最近幾季實現顯著的現金流改善。我們的業績已經並將繼續受益於去年 11 月宣布的重組行動。

Turning to Slide 5, I'll cover our first quarter financial highlights. Net sales of $2.9 billion decreased 3% versus the year ago period, as a 6% organic sales decline and a 1% currency headwind was partially offset by favorable portfolio benefits of 4%, primarily from the Spectrum acquisition. The organic sales decline reflects a 5% decrease in volume and a 1% decrease in price. Lower volume was driven by the impact of continued channel inventory destocking in Water Solutions, mainly in China, and Safety Solutions, most notably for Tyvek medical packaging, and Industrial Solutions for Tyvek's parts and Liveo biopharma products. These declines were partially offset by strong growth in electronics where Semi and Interconnect Solutions volumes increased 8% in aggregate versus the prior year period.

轉向投影片 5，我將介紹我們第一季的財務亮點。淨銷售額為 29 億美元，較去年同期下降 3%，其中 6% 的有機銷售額下降和 1% 的貨幣不利因素被主要來自 Spectrum 收購的 4% 的有利投資組合收益部分抵消。有機銷售額下降反映了銷量下降 5% 和價格下降 1%。銷售下降的原因是水解決方案（主要在中國）和安全解決方案（尤其是 Tyvek 醫療包裝）和工業解決方案（針對 Tyvek 零件和 Liveo 生物製藥產品）渠道庫存持續去庫存的影響。這些下降被電子產品的強勁成長所部分抵消，其中半導體和互連解決方案銷量與去年同期相比總計成長了 8%。

On a segment view, W&P and E&I organic sales declined 10% and 2%, respectively, while organic sales and corporate increased 1%. From a regional perspective, sales decreased on an organic basis globally versus the year ago period, with Europe, North America and Asia Pacific down 8%, 7%, and 4%, respectively. In China, sales volumes were up 3% year-over-year as growth in E&I more than offset declines in W&P due to continued pressure in water markets.

從細分市場來看，W&P 和 E&I 有機銷售額分別下降 10% 和 2%，而有機銷售額和企業銷售額則成長 1%。從地區角度來看，全球銷售額較去年同期有機下降，其中歐洲、北美和亞太地區分別下降 8%、7% 和 4%。在中國，由於水務市場持續承壓，E&I 業務的成長足以抵銷 W&P 業務的下滑，因此銷量較去年同期成長 3%。

First quarter operating EBITDA of $682 million decreased 4% as volume declines were partially offset by the impact of lower product costs and Spectrum earnings contribution. Operating EBITDA during the quarter of 23.3% was down 40 basis points versus the year ago period.

第一季營業 EBITDA 為 6.82 億美元，下降 4%，銷售下降部分被產品成本下降和 Spectrum 獲利貢獻的影響所抵銷。本季營運 EBITDA 為 23.3%，比去年同期下降 40 個基點。

I am pleased with our cash flow improvement as we focus our efforts on optimizing working capital performance. On a continuing operations basis, cash flow from operations of $493 million, less capital expenditures of $207 million resulted in adjusted free cash flow of $286 million in the first quarter, a significant increase versus $173 million in the year ago period. Adjusted free cash flow conversion during the quarter was 86%, significantly ahead of last year.

我對我們的現金流改善感到滿意，因為我們專注於優化營運資本績效。在持續經營業務的基礎上，第一季營運現金流為 4.93 億美元，減去 2.07 億美元的資本支出，調整後自由現金流為 2.86 億美元，較去年同期的 1.73 億美元大幅成長。本季調整後的自由現金流轉換率為 86%，顯著高於去年。

Turning to Slide 6. Adjusted EPS for the quarter of $0.79 per share decreased from $0.84 in the year ago period. Lower segment earnings, higher net interest expense and higher depreciation more than offset a $0.06 benefit from a lower share count. Our tax rate for the quarter was 24.6%, up from 23.4% in the year ago period, driven by geographic mix and earnings. Our full year 2024 base tax rate outlook of 23% to 24% remains unchanged.

轉向投影片 6。較低的部門獲利、較高的淨利息支出和較高的折舊足以抵消股票數量減少帶來的 0.06 美元收益。受地域組合和利潤的推動，我們本季的稅率為 24.6%，高於去年同期的 23.4%。我們對 2024 年全年基本稅率前景 23% 至 24% 保持不變。

Turning to segment results, beginning with E&I on Slide 7. E&I's first quarter net sales of $1.4 billion increased 5% as a Spectrum sales contribution of 8% was partially offset by an organic sales decline of 2% and a 1% currency headwind. The organic sales decline reflects a 1% decrease in volume and a 1% decrease in price due to the pass-through of lower metal prices. Effective with our first quarter reporting, I will highlight that we realigned certain product lines within our 3 E&I lines of business. The changes streamline our cost structure, while also optimizing certain product offerings to better focus on our customers. Additional detail has been provided on Slide 15 in the appendix.

轉向部門業績，從幻燈片7 上的E&I 開始。貨幣不利因素部分抵銷。有機銷售額下降反映了由於金屬價格下跌的影響，銷量下降了 1%，價格下降了 1%。從我們的第一季報告開始，我將強調我們重新調整了 3 個 E&I 業務線中的某些產品線。這些變化簡化了我們的成本結構，同時也優化了某些產品供應，以便更好地關注我們的客戶。附錄中的投影片 15 提供了更多詳細資訊。

For the first quarter of 2024, organic sales for Semiconductor Technologies were up 10% versus the year ago period due to the start of overall semiconductor market demand recovery, along with normalization of customer inventory levels and continued strong demand for OLED display materials. We expect underlying semi demand to continue to improve throughout the year, and note that our forecasts continue to call for semi fab utilization rates to increase from the low 70s percent that we saw in the first quarter to a fourth quarter exit rate in the low 80s.

2024 年第一季度，由於整體半導體市場需求開始復甦、客戶庫存水準正常化以及對 OLED 顯示材料的持續強勁需求，半導體技術公司的有機銷售額較去年同期增長 10%。我們預計全年潛在的半導體需求將繼續改善，並指出我們的預測繼續要求半導體工廠利用率從第一季的低 70% 上升到第四季度的低 80% 。

Within Interconnect Solutions, organic sales were up slightly as mid-single-digit volume gains were mostly offset by the impact of lower metals prices. This was the second consecutive quarter of year-over-year volume growth for ICS as broad electronic markets continue to recover. Organic sales for Industrial Solutions were down about 20% due primarily to ongoing channel inventory destocking for Kalrez O-rings and our Liveo product lines within biopharma markets. We continue to expect to see order improvement over the next several quarters in our Kalrez business. And our Liveo biopharma business is also still expected to recover later in the second half.

在互連解決方案中，有機銷售額略有成長，中個位數的銷售成長大部分被金屬價格下跌的影響所抵銷。隨著廣泛的電子市場持續復甦，這是 ICS 銷售連續第二季同比增長。工業解決方案的有機銷售額下降了約 20%，這主要是由於生物製藥市場中 Kalrez O 形圈和我們的 Liveo 產品線的通路庫存持續減少。我們繼續預計未來幾季 Kalrez 業務的訂單量將有所改善。而我們的Liveo生物製藥業務也仍有望在下半年稍後恢復。

Operating EBITDA from E&I of $374 million was up 3% versus the year ago period, driven by strength in Semi and Interconnect Solutions and the earnings contribution from Spectrum, partially offset by the impact of lower volumes in Industrial Solutions.

E&I 的營業 EBITDA 為 3.74 億美元，較去年同期增長 3%，這主要得益於半導體和互連解決方案的實力以及 Spectrum 的盈利貢獻，但部分被工業解決方案銷量下降的影響所抵消。

Turning to Slide 8. W&P first quarter net sales of $1.3 billion declined 11% versus the year ago period due to a 10% decrease in volume and a 1% currency headwind. Within Safety Solutions, organic sales were down low teens on lower volumes, driven mainly by channel inventory destocking, most notably for Tyvek medical packaging products. We believe our customers' inventory is close to normal at this point for Tyvek medical packaging.

轉向幻燈片 8。在安全解決方案領域，有機銷售額因銷售下降而下降了十幾位數，這主要是由於通路庫存去庫存所致，尤其是 Tyvek 醫療包裝產品。我們相信目前客戶的 Tyvek 醫療包裝庫存接近正常。

Within Water, organic sales were down mid-teens, driven by distributor inventory destocking and lower industrial demand in China. We continue to have active communication with our distributors and believe orders will pick up towards the end of the second quarter.

在水領域，由於經銷商庫存減少和中國工業需求下降，有機銷售下降了十幾歲。我們繼續與經銷商積極溝通，並相信訂單將在第二季末回升。

Shelter Solutions were flat on an organic basis compared to the year ago period, and we expect sequential lift in the second quarter. Operating EBITDA for W&P during the quarter of $295 million decreased 14% due to lower volumes, partially offset by the impact of lower product costs.

與去年同期相比，Shelter Solutions 的自然成長持平，我們預計第二季將較上季成長。由於銷量下降，W&P 本季的營業 EBITDA 下降了 2.95 億美元，下降了 14%，但部分被產品成本下降的影響所抵消。

Turning to Slide 9, I'll provide an update on our full year 2024 guidance as well as our expectations for the second quarter. We are raising our full year guidance for net sales, operating EBITDA, and adjusted EPS. At the midpoint of the revised ranges provided, we now expect full year net sales of about $12.25 billion, operating EBITDA of about $2.975 billion, and adjusted EPS of $3.60 a share, which now indicates expected year-over-year earnings growth.

轉向投影片 9，我將提供 2024 年全年指引的最新資訊以及我們對第二季的預期。我們正在提高全年淨銷售額、經營 EBITDA 和調整後每股收益的指引。在所提供的修訂範圍的中點，我們現在預計全年淨銷售額約為 122.5 億美元，營運 EBITDA 約為 29.75 億美元，調整後每股收益為 3.60 美元，這表明預期的同比盈利增長。

For the second quarter of 2024, we expect net sales of about $3.025 billion, operating EBITDA of about $710 million and adjusted EPS of $0.84 per share. The sequential sales and earnings lift in the second quarter assumes volume improvement driven by favorable seasonality in both ICS and Shelter, continued electronics recovery, and reduced destocking impacts in water and medical packaging.

我們預計 2024 年第二季淨銷售額約為 30.25 億美元，營運 EBITDA 約為 7.1 億美元，調整後每股收益為 0.84 美元。第二季銷售額和獲利的連續成長是基於 ICS 和 Shelter 的有利季節性推動的銷售改善、電子產品持續復甦以及水和醫療包裝去庫存影響的減少。

Year-over-year sales and earnings growth in the second half, embedded within our full year guidance, is expected to be driven by further electronics market recovery, including continued improvement in semiconductor fab and PCB utilization rates along with a return to volume growth in W&P. Second half earnings drivers include both volume improvement as well as expected mix benefit.

下半年的年比銷售和獲利成長（包含在我們的全年指引中）預計將受到電子市場進一步復甦的推動，包括半導體晶圓廠和 PCB 利用率的持續改善以及銷售成長的恢復W&P。下半年的獲利驅動因素包括銷售改善以及預期的混合效益。

With that, I'll turn it back to Ed.

這樣，我會把它轉回給艾德。

Thanks, Lori. I'd like to note that we published our annual sustainability report earlier this week, highlighting the work of our global team to meet our commitments across all aspects of ESG, and I'm pleased with the progress and speed with which we are advancing our 2030 goals. There are 3 dimensions to our sustainability strategy: innovation; protecting people in the planet; and empowering employees and communities. I'd like to mention just a few recent accomplishments.

謝謝，洛瑞。我想指出的是，我們在本週早些時候發布了年度永續發展報告，強調了我們的全球團隊為履行我們在ESG 各個方面的承諾所做的工作，我對我們推進我們的目標所取得的進展和速度感到高興2030 年目標。我們的永續發展策略有 3 個維度：創新；保護地球上的人們；並賦予員工和社區權力。我只想提及最近取得的一些成就。

More than 80% of our innovation portfolio is expected to advance our customer sustainability road map. This is a critical metric that aligns our product development with customers' expectations for both performance and sustainability. We were pleased to be recognized for this commitment by Samsung Electronics, which awarded us as a Best ESG Partner this past year.

我們超過 80% 的創新組合預計將推動我們的客戶永續發展路線圖。這是一個關鍵指標，使我們的產品開發與客戶對性能和永續性的期望保持一致。我們很高興這項承諾得到了三星電子的認可，去年三星電子授予我們「最佳 ESG 合作夥伴」稱號。

On climate, we delivered another year of strong performance, surpassing our 2030 goals, which are aligned with the ambition of the Paris Accord. This past year, we achieved a 58% reduction in Scope 1 and Scope 2 greenhouse gas emissions from a 2019 baseline, exceeding our 2030 goal of 50%. And we achieved a 39% reduction from the 2020 baseline in Scope 3 emissions, also ahead of our 2030 goal.

在氣候方面，我們又取得了強勁表現，超越了 2030 年的目標，這與《巴黎協定》的雄心一致。去年，我們的範圍 1 和範圍 2 溫室氣體排放量較 2019 年基準減少了 58%，超過了 2030 年 50% 的目標。我們的範圍 3 排放量較 2020 年基準減少了 39%，也提前完成了 2030 年的目標。

This past year, we made strong progress in the continued deployment of a company-wide operational excellence framework designed to drive continuous improvement in productivity, including deployment of standardized tools, best-in-class technologies, and practices that enhance workflows, reduce errors, minimize waste, and improve safety. Related to this, 2023 was our safest year on record for employees and contractors.

去年，我們在持續部署全公司範圍內的卓越營運框架方面取得了巨大進展，該框架旨在推動生產力的持續提高，包括部署標準化工具、一流的技術以及增強工作流程、減少錯誤的實踐，最大限度地減少浪費並提高安全性。與此相關的是，2023 年是我們有史以來對員工和承包商來說最安全的一年。

Finally, our strong governance practices underpin our sustainability strategy as we remain committed to transparent reporting on our policies and performance with oversight from our Board. A key focus in 2023 was strengthening the DuPont Supplier Code of Conduct with our new Responsible Supplier program. These are just a few of the many great examples in the report of how our teams are delivering on our purpose in driving sustainability.

最後，我們強而有力的治理實踐支撐著我們的永續發展策略，因為我們仍然致力於在董事會的監督下透明地報告我們的政策和績效。 2023 年的重點是透過我們新的負責任供應商計畫加強杜邦供應商行為準則。這些只是報告中關於我們的團隊如何實現推動永續發展目標的眾多精彩範例中的幾個。

With that, we are pleased to take your questions, and let me turn it back to the operator to open the Q&A.

至此，我們很高興回答您的問題，讓我將其轉回給接線員以開始問答。

(Operator Instructions)

（操作員說明）

Your first question comes from the line of Jeff Sprague from Vertical Research Partners.

您的第一個問題來自 Vertical Research Partners 的 Jeff Sprague。

Ed, good to see the bottom is apparently in here. And really, the nature of my question is you did a lot of hard work trying to protect margins and minimize decrementals through this protracted period of volume declines. Now that we're heading the other way, I just wonder if you could give us any perspective on, I don't know, costs that need to come back or how you feel about structural costs. And maybe the punch line is just a little bit of guidance on your incrementals as we think about volumes going the other way in E&I.

艾德，很高興看到底部顯然就在這裡。事實上，我的問題的本質是，你們做了很多艱苦的工作，試圖在這段長期的銷量下降期間保護利潤並最大限度地減少損失。現在我們正朝著相反的方向前進，我只是想知道您是否可以向我們提供一些關於需要收回的成本的看法，或者您對結構性成本的看法，我不知道。也許這句妙語只是對增量的一點指導，因為我們考慮的是 E&I 中的捲的另一種方式。

Yes, Jeff. So the cost actions we took, the bulk of them will stay in place. I would say, out of the $150 million we did and we announced in November, we'll get about $100 million of that cost savings this year. And I would say out of the $150 million though, as you get into 2025, and we're really cranking along in all our end markets, we'd probably bring back about $30 million or $40 million of cost, which is kind of on the factory footprint side, where it will be a little bit of cost there, so that would be it.

是的，傑夫。因此，我們採取的成本行動，其中大部分將保持不變。我想說的是，我們在 11 月宣布並已投入 1.5 億美元，今年我們將節省約 1 億美元的成本。我想說，在 1.5 億美元中，當你進入 2025 年時，我們在所有終端市場上都在穩步前進，我們可能會收回大約 3000 萬美元或 4000 萬美元的成本，這有點工廠佔地面積一側，那裡會產生一點成本，所以就這樣了。

A little bit probably in 2025 on comp because we didn't pay out 100% on our bonus plans and probably won't be -- it could be 100% this year so maybe that comp year-over-year won't be that different, but certainly from last year, 2023, a little bit of that headwind there, and '24, potentially not in '25.

2025 年可能會有一點補償，因為我們沒有 100% 支付我們的獎金計劃，而且很可能不會——今年可能是 100%，所以年復一年的補償可能不會是這樣有所不同，但肯定與去年、2023 年相比，有一點逆風，而24 年，可能不會在25 年。

Incrementals, in the second half of the year, maybe just give you that for us, as we start bouncing back here, remember, we get some absorption benefit, obviously, because of the improvement in our sales rate. Our incrementals are planned to be around 56% in the second half of the year. And I also think, Jeff, we've derisked the second half of the year now with the baseline we're working off of now.

增量，在今年下半年，也許只是為我們提供這一點，當我們開始反彈時，請記住，顯然，由於我們的銷售率提高，我們獲得了一些吸收效益。我們下半年的增量方案在56%左右。我還認為，傑夫，我們現在已經按照現在正在製定的基準消除了下半年的風險。

We only have to ramp $340 million in sales first half to second half, which is 6%, and our EBITDA is planned in our guidance to ramp about 14%. That gets you to 56% incrementals. So I think it's significantly derisked from potentially where we were.

我們上半年到下半年的銷售額只需增加 3.4 億美元，即 6%，而我們的 EBITDA 在我們的指導中計劃增加約 14%。這將使您獲得 56% 的增量。所以我認為它與我們所處的潛在位置相比已經大大降低了風險。

Yes, and the 56% is first half, second half. If you look at our margin profile in the second half versus the first half in the implied guide, it is up almost 200 basis points in the low 25% range, which is a nice tailwind as we head into 2025.

是的，56%是上半場、下半場。如果你看看我們下半年的利潤率狀況與隱含指南中的上半年相比，你會發現它在25% 的低範圍內上漲了近200 個基點，這對於我們進入2025 年來說是一個很好的順風車。

Yes. And Jeff, maybe just one other because the electronics is bouncing back nice. We've always consistently, quarter in, quarter out, brand that business at like 31% to 32% EBITDA margins. Going forward, with Spectrum in there, we'd pressed the EBITDA margins just because it's a great business but they're a little bit lower than the average. So it brings it down like 100 basis points. But having said that, we should be able to run that business as we're cranking back at like 32% EBITDA margin as we get into 2025.

是的。傑夫，也許只是另一個，因為電子設備恢復得很好。我們始終如一地堅持以 31% 至 32% 的 EBITDA 利潤率開展業務。展望未來，隨著 Spectrum 的加入，我們會壓低 EBITDA 利潤率，因為它是一項偉大的業務，但略低於平均水平。因此它使其下降了大約 100 個基點。但話雖如此，我們應該能夠經營這項業務，因為進入 2025 年，我們的 EBITDA 利潤率將恢復到 32% 左右。

Great. And actually, the follow-up question that's going to play into the margin calculus also, you just think about kind of electronics over time, parts of it sort of being a price down market naturally -- nature of the business. But when we think of some of the more sophisticated things going on in Semi and the like and maybe other places in the E&I portfolio, how do you feel about your ability to get price or to avoid price down over time in these businesses?

偉大的。實際上，後續問題也將影響利潤率計算，你只需考慮隨著時間的推移，電子產品的一部分，其中一部分自然會成為價格下降的市場——業務的本質。但是，當我們想到 Semi 等領域以及 E&I 投資組合中的其他領域正在發生的一些更複雜的事情時，您對這些業務中獲得價格或避免價格隨著時間推移而下降的能力有何看法？

Yes. Well, Jeff, usually, the price down is at 1%. That's kind of what we've averaged so it's not really significant. Having said that, more and more of this portfolio over the next set of years is going to be advanced nodes with all the AI coming, and by the way, the AI then moving down into mobile devices. And as you know, we're advantaged there. That's how we always outgrow MSI by 200 to 300 basis points.

是的。嗯，傑夫，通常情況下，價格會下降 1%。這是我們的平均值，所以並不重要。話雖如此，在接下來的幾年裡，隨著所有人工智慧的到來，這個產品組合中越來越多的產品將成為高階節點，順便說一句，人工智慧隨後將進入行動裝置。如您所知，我們在這方面具有優勢。這就是我們的成長總是超過 MSI 200 到 300 個基點的原因。

So as more of the business skews there, that helps our margins just from a mix perspective, but we also get price on the more advanced platforms that we have in electronics. So ICS will probably still lose price. That's more our PCB stuff that are the laminates and displays and all that, we'll lose a little bit of price, but I got to think we'll do a little better on the chip side.

因此，隨著更多業務集中在那裡，從混合角度來看，這有助於我們的利潤，但我們也可以在電子產品領域擁有的更先進的平台上獲得價格。因此 ICS 可能仍會降價。更多的是我們的 PCB 材料，即層壓板和顯示器等等，我們會損失一點價格，但我認為我們會在晶片方面做得更好一點。

Your next question comes from the line of Steve Tusa of JPMorgan.

你的下一個問題來自摩根大通的史蒂夫圖薩。

I think you guys had said you expected like a 10% sequential bounce off the first quarter. This is a little -- the EBITDA -- I mean, good first quarter, but the EBITDA quarter-over-quarter is a little bit lower than that, more like 4%, 5%, I guess on your guide. And anything that changed that view? Was there anything pulled forward in the first quarter that kind of takes out of the second quarter or just conservatism?

我想你們已經說過，你們預計第一季會出現 10% 的連續反彈。這有點—— EBITDA——我的意思是，第一季表現不錯，但 EBITDA 季度環比略低一些，我猜在你的指南上，更像是 4%、5%。有什麼改變了這種觀點嗎？第一季是否有什麼事情會影響第二季的進展，或者只是保守主義？

Yes. No, I think it was more a reflection of the overdelivery of Q1. So originally, when we said a 10% sequential lift, we were guiding to Q1 of $610 million so would have got you roughly to $670 million. So delivering the $682 million mutes the ramp a little bit, but we still are now at $710 million versus the original $670 million, so no, actually some upside to the expectations that we had back in February when we gave that number.

是的。不，我認為這更多地反映了第一季的超額交付。因此，最初，當我們說環比成長 10% 時，我們指導第一季成長 6.1 億美元，因此大約可以達到 6.7 億美元。因此，交付6.82 億美元會稍微削弱成長，但與最初的6.7 億美元相比，我們現在的價格仍然是7.1 億美元，所以不，實際上比我們2 月給出這個數字時的預期有一些上升。

Okay, that makes sense. And is there anything that is a little worse than you would have expected? It seems like obviously, electronics is coming along really nicely. The other stuff may be a little more sticky on the Industrial side. And anything that is kind of standing out as just not coming along as you would have expected on the Industrial businesses recovery?

好吧，這是有道理的。有什麼事情比你預想的更糟嗎？顯然，電子產品的發展非常順利。其他東西在工業方面可能更具黏性。在工業企業復甦方面，有什麼事情沒有像您預期的那樣突出嗎？

Steve, it's pretty much as we said last quarter. Shelter will be up sequentially first to second, mostly because of seasonality, but that clearly had bottomed out already to water. By the way, we just had our manager of our Water business over in China in the last 2 weeks, and they're saying they're going to start placing more orders towards the back end of this quarter. So that feels the same.

史蒂夫，這與我們上個季度所說的差不多。庇護所將依序從第一到第二上升，主要是因為季節性，但顯然已經觸底到水。順便說一句，過去兩週我們的水業務經理剛剛來到中國，他們說他們將在本季結束時開始下更多訂單。所以感覺是一樣的。

Same with the health care medical packaging business towards the end of this quarter, beginning of next quarter. And the only 2 that are delayed on -- they're bottomed, by the way, but they haven't recovered yet, but this is no change from what we said before is our Biopharma business, looks more like the back half of the calendar year, and our Kalrez business looks like a second half recovery. So pretty much in line.

與本季末、下季初的醫療保健醫療包裝業務相同。唯一被推遲的兩個——順便說一句，它們已經觸底，但還沒有恢復，但這與我們之前所說的生物製藥業務沒有變化，看起來更像是公司的後半部分。的Kalrez 業務看起來下半年有所復甦。所以基本上是在排隊。

By the way, the one other bright spot I liked, we had been negative on growth in China through last year and we had 3% growth in China. So that market has been slowly turning back up for us. And by the way, that 3% was predominantly because the electronics business turned, we were up 15% in E&I in China in the first quarter. So that's turned nicely for us. And our semi customers in China were ordering at about -- it was about that same sales rate, about 15% growth, including the local China semi customers, not the multinational. So that was good to see.

順便說一句，我喜歡的另一個亮點是，去年我們對中國的成長持負面看法，但我們在中國的成長為 3%。因此，我們的市場正在慢慢回升。順便說一句，這 3% 主要是因為電子業務的轉變，第一季我們在中國的 E&I 成長了 15%。所以這對我們來說很好。我們在中國的半成品客戶的訂購量與銷售率大致相同，成長率約為 15%，其中包括中國當地的半成品客戶，而不是跨國公司。所以很高興看到這一點。

Okay. And then just last quickly, any updates on price raws spread for you guys? I know it's less important these days but any update there?

好的。最後，請問你們有任何關於價格原始數據的更新嗎？我知道現在它不那麼重要了，但有更新嗎？

Yes, we did have a little more favorability than what we saw in Q1 that we believe will hold for the year that contributed partially to the Q1 beat. So if you look at the Q1 beat, it was about $110 million or so on revenue and then about $70 million on earnings. So obviously, we got some upside there outside of volume, and that was primarily better price/cost spread.

是的，我們確實比第一季看到的好感度要高一些，我們相信這一點將在今年保持下去，這對第一季的表現做出了部分貢獻。因此，如果你看看第一季的業績，你會發現營收約為 1.1 億美元左右，獲利約 7,000 萬美元。顯然，除了銷售量之外，我們還獲得了一些上行空間，這主要是更好的價格/成本價差。

Your next question comes from the line of Scott Davis of Melius Research.

您的下一個問題來自 Melius Research 的 Scott Davis。

This may be hard to define explicitly, Ed, but you've mentioned a couple of quarters in a row the AI chip and data center benefit in E&I. Help us understand materiality when you think about new chip designs and such and the content of your product that's going to be needed. Does it structurally raise the growth rate, do you think, over, call it, a 5-year period? Or is there enough stuff get cannibalized and it kind of nets out to a slight positive? But perhaps, I don't know, I just have no idea so I'll ask you.

Ed，這可能很難明確定義，但您已經連續幾季提到人工智慧晶片和資料中心在 E&I 中受益。當您考慮新的晶片設計等以及您將需要的產品內容時，請幫助我們理解重要性。您是否認為它會結構性地提高成長率，稱之為五年？或者是否有足夠的東西被蠶食並且產生了輕微的正面影響？但也許，我不知道，我只是不知道，所以我會問你。

Yes. So the AI -- so the data center size for us is about $700 million of our revenue and $250 million of that ballpark, it's kind of hard to tell exactly, Scott, but about $250 million of that is AI-specific. And that is growing north of 20% right now, that base. And I do think it's -- look, I think we're going into a super cycle in semiconductor here over the next decade because of all this AI. And remember, the AI now, everyone is going to push it down into your devices. So it's going to be a pretty broad-based growth market.

是的。因此，人工智慧——我們的資料中心規模約為我們收入的 7 億美元，其中約 2.5 億美元，這很難準確地說，斯科特，但其中約 2.5 億美元是人工智慧專用的。目前該數字正在成長超過 20%（即該基數）。我確實認為——看，我認為由於所有這些人工智慧，我們將在未來十年進入半導體的超級週期。請記住，現在人工智慧，每個人都會將其推送到您的設備中。因此，這將是一個基礎相當廣泛的成長市場。

My gut is in next year, I don't want to get into forecast yet for 2025, but I got to imagine the E&I business is going to grow high single digits in 2025. And we're expecting fab utilization to exit -- starting the year in the low 70s, exiting the year in the low 80s. And I would think we're probably in the low 90s by the middle of next year, and that would give us that high single-digit growth rate. And then the AI chips, by the way, really help us because it's a higher margin business than our mix, so it should tee up for a really nice 2025. But that market is going to continue to grow north of 20% here and it's got a long cycle coming up.

我的直覺是明年，我還不想對 2025 年進行預測，但我可以想像 E&I 業務將在 2025 年實現高個位數增長。一年，80年代低的一年。我認為到明年年中我們可能會處於 90 年代低水平，這將為我們帶來高個位數的成長率。順便說一句，人工智慧晶片確實對我們有幫助，因為它的利潤率比我們的產品組合更高，所以它應該為 2025 年的美好前景做好準備。即將到來一個很長的周期。

Okay, so material for sure. So just to back up a little bit in Water Solutions in China. I know it's not -- it's a little minutia. But was there a prebuy or some sort of, I don't want to call it channel stuffing, because that's not what I mean? But was there some sort of weird behaviors that, that customer ended up with so much excess inventory? Is it purely just the macro turned a little sideways or down on the folks in there caught with extra inventory?

好吧，材料肯定是這樣。所以只是為了支持中國的水解決方案。我知道這不是——這只是一些細節。但是是否有預購或某種形式，我不想稱之為渠道填充，因為這不是我的意思？但是否存在某種奇怪的行為，導致該客戶最終擁有如此多的過剩庫存？這純粹是宏觀經濟情勢對那些擁有額外庫存的人造成了一點橫向或向下的影響嗎？

Yes. So it wasn't one customer, Scott, just to clarify. I don't know if you meant it that way. We have...

是的。所以，史考特，不是一位顧客來澄清的。我不知道你是不是這個意思。我們有...

No, I didn't mean it that way.

不，我不是那個意思。

We have many distributors, but 4 main distributors in China that do the bulk of our business that we don't do direct by the way. We do a lot of direct business, too. I think what -- I mean, what they verbalized to us, obviously, again, our team was just there with them this past week is industrial production slowed down. They were ordering at a higher rate, and they had to go through a destock.

我們有很多經銷商，但中國有 4 個主要經銷商，他們負責我們的大部分業務，順便說一句，我們不會直接做這些業務。我們也做很多直接業務。我認為，我的意思是，他們向我們所說的，顯然，我們的團隊上週才剛和他們在一起，工業生產放緩了。他們的訂購率更高，因此必須進行去庫存。

And the destock, by the way, is not as long as some of the other destocks. It looks like if it's ending here at the end of this quarter, it was about 5, 6 months of kind of working their inventories back down. So we think we're in pretty good shape going into the third quarter here. And again, we expect orders to start coming in kind of in the June timeframe to start picking up there. So it's more of the macro, I guess, I would say, Scott.

順便說一句，去庫存的時間並不像其他一些去庫存的時間那麼長。看起來如果在本季末結束的話，他們的庫存需要大約 5、6 個月的時間來減少。因此，我們認為進入第三季度我們的狀態非常好。同樣，我們預計訂單將在六月的時間範圍內開始增加。所以這更多是宏觀的，我想，我會說，斯科特。

Your next question comes from the line of John Roberts of Mizuho.

你的下一個問題來自瑞穗銀行的約翰羅伯茲。

Just one for me. Maybe Lori, you could give us an update on adhesives multi-base in Tedlar. I would have thought they'd be down like your Industrial segment and they've got some auto exposure there, which was probably weak. But actually, corporate sales were up 1% year-over-year. What's going on there?

只給我一個。也許 Lori，您可以向我們介紹 Tedlar 多基黏合劑的最新情況。我原以為他們會像你們的工業部門一樣下跌，而且他們在那裡有一些汽車業務，這可能很弱。但實際上，企業銷售額比去年同期成長了 1%。那裡發生了什麼事？

Yes. So we continue to see strength on the EV side of auto. So as you had mentioned, overall auto builds are weaker right now, but there's still a lot of upside within the EV side. So that was up double digits in the quarter and we expect that to stay for the year. A lot of the upside in the volume in the quarter came from Tedlar, which is in the photovoltaic space, so we had really nice volumes within Tedlar that gave us the 1% organic for the quarter.

是的。因此，我們繼續看到汽車電動車方面的實力。正如您所提到的，目前整體汽車製造較弱，但電動車方面仍有很大的上升空間。因此，該季度增長了兩位數，我們預計今年將保持這一趨勢。本季銷量的大部分成長來自光伏領域的 Tedlar，因此我們在 Tedlar 內的銷量非常好，這為我們帶來了本季 1% 的自然成長。

Your next question comes from the line of Chris Parkinson of Wolfe Research.

您的下一個問題來自沃爾夫研究中心的克里斯·帕金森。

Just want to turn on the ICS side. You've seen a bit of a market share shift between Chinese OEs versus the Americans and the Northeast Asians. And I know you have exposure everywhere. And at the same time, you've also seen an increase in the sophistication of Chinese handsets. So can you just kind of parse through that in terms of where the market is right here, right now and how the Street should be thinking about your relative content exposures and how we should think about that business recovering throughout '24 and perhaps '25?

只是想打開 ICS 端。您已經看到中國原始設備製造商與美國和東北亞原始設備製造商之間的市場份額發生了一些變化。我知道你到處都有曝光。同時，您也看到中國手機的複雜程度不斷提高。那麼，您能否從市場現在所處的位置以及華爾街應該如何考慮您的相對內容曝光以及我們應該如何考慮該業務在 24 年甚至 25 年的復甦方面來分析一下？

Well, I'd give you, Chris, maybe just high level that if you go back to the middle of last year, the PCB utilization rates were kind of all the way down in the mid-40s. In the first quarter, they're kind of in the mid-50s. We think we exit the year in the low 60s -- in the second half of the year, we'll kind of be in the low 60s. And normal, by the way, for PCB utilization rates is kind of low 70s. They never run in the 90s, like the semis do. So you can kind of see the progression of that plan out here kind of over the next year.

克里斯，我想告訴你，如果你回到去年年中，PCB 利用率可能會一路下降到 40 年代中期。在第一季度，他們大約在 50 年代中期。我們認為今年的業績將保持在 60 多歲的水平上——下半年，我們將在 60 多歲的水平上結束。順便說一下，PCB 的利用率在 70 左右是正常的。他們從來沒有像半決賽那樣在90年代跑過。因此，您可以在明年看到該計劃的進展。

Yes. We continue to see wins within the metallization space more on the circuitry side, so we've seen a nice volume lift in the first quarter, and we expect that to be maintained for the rest of the year. And we have had some share gains outside of that in the premium smartphone space on both the fulfillment side and then the other device side as well with PCs and others.

是的。我們繼續在電路方面看到金屬化領域的勝利，因此我們在第一季度看到了銷量的大幅提升，並且我們預計這一情況將在今年剩餘時間內保持不變。除了高階智慧型手機領域之外，我們在履行方面以及其他設備方面以及個人電腦和其他方面都獲得了一些份額增長。

Got it. Lori, you know my favorite question as a follow-up is on W&P margins. I mean, obviously, over the last few quarters, there have been a bunch of put and takes, inclusive of the destocking. But with that progressively improving throughout '24, can you help us just give us the latest and greatest on how you're thinking about the long-term margin optionality in terms of op efficiencies, leverage, mix, so on and so forth?

知道了。 Lori，你知道我最喜歡的後續問題是 W&P 利潤率。我的意思是，顯然，在過去的幾個季度裡，出現了一系列的調整和調整，包括去庫存。但隨著整個 24 年的逐步改善，您能否幫助我們向我們提供最新、最好的信息，說明您如何考慮營運效率、槓桿、組合等方面的長期利潤選擇性？

Yes. We still see the entitlement for W&P margins in that 27% range. And so as you know, they've been challenged in the first quarter, really a function of the lower volumes. There's a lot of heavy assets in that business that take a hit when the volumes are down. We've done a nice job controlling costs to minimize the decrementals to low levels, but that is impacting it. And then the larger impact comes from just the mix side.

是的。我們仍然認為 W&P 的利潤率仍處於 27% 的範圍內。如您所知，他們在第一季受到了挑戰，這實際上是銷量下降的結果。該業務中有很多重資產在銷量下降時會受到打擊。我們在控製成本方面做得很好，將減少量降至較低水平，但這正在對其產生影響。然後更大的影響僅來自混合方面。

So the Tyvek business is down primarily because of the medical packaging destock that's going on, that we expect to start to see resolution here at the end of this quarter and then improvement as we head into the back half. And so when you start to see those 2 items wane, we do see nice margin improvement first half, second half. So the first half margins will probably stay at that 23% level. And then we see them ticking up about 100 basis points as we get to the back half of the year.

因此，Tyvek 業務下降主要是因為醫療包裝庫存正在減少，我們預計在本季末開始看到解決方案，然後在進入下半年時有所改善。因此，當您開始看到這兩個項目下降時，我們確實看到上半年和下半年的利潤率有所改善。因此，上半年利潤率可能會保持在 23% 的水平。然後，當我們進入今年下半年時，我們看到它們上漲了約 100 個基點。

Your next question comes from the line of David Begleiter of Deutsche Bank.

你的下一個問題來自德意志銀行的大衛貝格萊特。

Ed, you only raised the full year guidance by the amount of the Q1 beat. Is that because it's still early in the year or are you a little more cautious on the back half demand environment?

Ed，您僅將全年指引提高了第一季的增幅。是因為現在還處於年初，還是您對下半年的需求環境更加謹慎？

Yes, David, no change on our thinking on the back half. It's just as I said earlier, I feel good we've derisked the ramp in the year. So no, I don't feel any different about it. And hopefully, it ends up being a little bit conservative.

是的，大衛，我們後半部的想法沒有改變。正如我之前所說，我感覺很好，我們今年已經擺脫了坡道的風險。所以不，我對此沒有什麼不同的感覺。希望它最終會變得有點保守。

Very good. And can you just provide us another update on PFAS right now?

非常好。您現在能否向我們提供有關 PFAS 的最新資訊？

Yes, nothing significantly new there, David. The next thing coming up is the -- that we would want to settle is the Stade AG cases. I don't think that will be a 2024 event. I think it's more of a 2025 event. And then there's probably a couple of states that we will settle separately from the class action. It's where we had locations set. So I think you might potentially see one or two of those get settled maybe during this calendar year. So that's where it's at.

是的，大衛，沒有什麼明顯的新東西。接下來要解決的是——我們想要解決的是 Stade AG 案件。我認為這不會是 2024 年的事件。我認為這更像是 2025 年的事件。然後可能有幾個州我們將與集體訴訟分開解決。這是我們設置位置的地方。因此，我認為您可能會在今年看到其中一兩個問題得到解決。這就是它所在的地方。

I think, David, the good news with the settlement, by the way, the other settlement is done now. The water districts is totally done, signed off by the judge. And I think the nice thing about that when it comes to all the firefighting foam is that it became very clear in that litigation and then what was written about it, that the exposure of the consortium of Corteva, DuPont, and Chemours is 3% to 7% of the total exposure. And remember, DuPont's 1/3 of the 3% to 7%. So I think that helps box in what these numbers are going to be as we settle the other cases.

大衛，我認為和解的好消息是，順便說一句，另一個和解現在已經完成。水區已全部完成，並由法官簽署。我認為，當涉及所有消防泡沫時，它的好處在於，在那場訴訟以及隨後的相關報導中，科迪華、杜邦和科慕財團的暴露程度為 3%，這一點變得非常清楚。佔總曝光量的7%。請記住，杜邦公司的 1/3 為 3% 至 7%。因此，我認為這有助於我們解決其他案件時確定這些數字。

Your next question comes from the line of Mike Leithead of Barclays.

你的下一個問題來自巴克萊銀行的麥克萊特黑德。

First question I wanted to ask on W&P, I wanted to ask about price. It seems like it's holding in, I'd say, fairly well despite double-digit volume declines in the past few quarters. So what's your expectation for price? Should we expect this to stay relatively flat as we move through the year?

我想在W&P上問的第一個問題，我想問價格。我想說，儘管過去幾季銷量出現了兩位數的下降，但它似乎仍保持得相當不錯。那麼您對價格的期望是多少？我們是否應該期望這一數字在今年保持相對穩定？

Yes. So yes, we delivered flat price, overall, in W&P in the quarter. We still have some expectation to give back 1% or 2%, primarily in the Shelter business as we go throughout the year, but we have done a really nice job, as you had mentioned, holding on to price.

是的。所以，是的，本季我們在 W&P 中總體上提供了統一的價格。我們仍然期望回饋 1% 或 2%，主要是在我們全年開展的住房業務中，但正如您所提到的，我們在堅持價格方面做得非常好。

Got it. That's helpful. And then bigger picture, Ed, how is Spectrum performing relative to your initial expectations?

知道了。這很有幫助。 Ed，從更大的角度來看，Spectrum 的表現與您最初的預期相比如何？

Right on what we told our Board. It's nice to see they are basically not going through a destock, which is good. And the -- I think we've told you this before, we -- the business is growing nicely but there's also a major ramp going on with one key medical device company, and that ramp is -- by the way, it was a very significant ramp so we were -- that was the one area we've been watching really close. And they are ramping very nice with that customer. It's more of a manufacturing ramp we had to go through that was pretty significant, and that's on track also. So feeling good about that.

正如我們告訴董事會的。很高興看到他們基本上沒有去庫存，這很好。我想我們之前已經告訴過你這一點，我們的業務增長良好，但一家重要的醫療設備公司也出現了重大增長，順便說一句，這是一個非常重要的坡道，所以我們——那是我們一直密切關注的一個區域。他們與該客戶的關係非常好。這更像是我們必須經歷的一個非常重要的製造階段，而且也正在步入正軌。所以感覺很好。

And it's clearly an area we like. Between Tyvek medical packaging, the Spectrum business and the Liveo business, it's a really nice percentage of our portfolio now, as we mentioned in our prepared remarks. So it's 10% of the company, and it's just a nice end market, stable end market to be in and with a very solid steady growth rate. So we're really liking that business.

這顯然是我們喜歡的領域。正如我們在準備好的演講中提到的那樣，Tyvek 醫療包裝、Spectrum 業務和 Liveo 業務現在在我們的投資組合中所佔的比例非常大。所以它占公司的 10%，這是一個很好的終端市場，穩定的終端市場，並且具有非常穩定的成長率。所以我們真的很喜歡這項業務。

Your next question comes from the line of Josh Spector of UBS.

你的下一個問題來自瑞銀集團的喬許·史佩克特。

I was wondering if you could talk about your expectation on buybacks versus M&A. I know you talked about no M&A in 2024 kind of through the September period. Can you extend that through the rest of this year and maybe think about '25 in terms of your total capital allocation?

我想知道您是否可以談談您對回購與併購的預期。我知道您在 9 月期間談到了 2024 年不會進行併購。您能否將其延續到今年剩餘時間，並考慮您的總資本配置「25」？

Yes. I would think -- so we're not planning on any acquisition this year. If we -- when we do one, I would think it's more in the tuck-in size. We're not looking at anything big. We would love to add to the health care platform. There's a fair amount of what I'd call tuck-in opportunities there. So I mean, it's possible we could do one this year, but it's not really in our plans.

是的。我想——所以我們今年不打算進行任何收購。如果我們——當我們做一個時，我認為它更多的是折疊尺寸。我們並不著眼於什麼大事。我們很樂意添加到醫療保健平台。那裡有相當多的我稱之為「塞進去」的機會。所以我的意思是，我們今年有可能會做一個，但這並不在我們的計劃中。

Our team, Lori and I have said that the team is all hands on deck operationally as we were going through the destock. And that was our focus area. We still have an outstanding ASR for -- we just completed the one $500 million ASR. We have one more to do so we would plan on doing that, obviously, this year. And then after that, I think, will be a nice mix of some tuck-in acquisition. And depending where our stock price is, I've always been a pretty big share repurchaser when I feel our stock or our multiple is not where it should be. So I don't think you'll see any change in our thinking there.

我們的團隊，洛里和我說過，在我們進行去庫存的過程中，我們的團隊全力以赴進行運作。這就是我們的重點領域。我們仍然有一個出色的 ASR——我們剛剛完成了 5 億美元的 ASR。我們還有一項工作要做，所以我們顯然計劃今年這樣做。我認為，在那之後，將會是一些收購的完美組合。根據我們的股價，當我覺得我們的股票或本益比不在應有的水平時，我一直是個相當大的股票回購者。所以我認為你不會看到我們的想法有任何改變。

Your next question comes from the line of Michael Sison of Wells Fargo.

你的下一個問題來自富國銀行的麥可·西森。

This is Richard on for Mike. So I just wanted to ask in terms of the guidance for the full year and what you're seeing in terms of demand and destocking coming to an end, should we expect year-over-year volume growth starting in the third quarter? Or how are you looking at volumes in the second half of the year?

這是理查替麥克發言。因此，我只是想問一下，就全年指導而言，以及您在需求和去庫存即將結束方面所看到的情況，我們是否應該預期從第三季度開始銷量將同比增長？或是您如何看待下半年的銷售量？

Yes. In the guide that we gave, we do see a return to volume growth in the second half. It ramps as you go from 3Q to 4Q, really just a comp because 4Q was our weakest quarter last year. But yes, we will be returning to growth from both a volume and earnings perspective in the second half.

是的。在我們提供的指南中，我們確實看到下半年銷售恢復成長。從第三季度到第四季度，它會逐漸增加，實際上只是一個比較，因為第四季度是我們去年最弱的季度。但是，是的，從下半年的銷售和獲利角度來看，我們將恢復成長。

Okay, great. And then just in terms of your comments on China recovery, was that more specific to E&I? Or maybe if you can talk about what you're seeing on the Water Solutions side because you do find that industrial demand remains weak in China, but I guess you're saying it's recovering better than you thought?

好的，太好了。那麼，就您對中國復甦的評論而言，這是否更具體地針對 E&I？或者也許您可以談談您在水解決方案方面看到的情況，因為您確實發現中國的工業需求仍然疲軟，但我猜您是說它的復甦比您想像的要好？

Yes. No change there. So the volume uptick that we saw in China in the first quarter was primarily E&I. As I had mentioned, we are up kind of mid-teens for volumes in China. We still do see industrial weakness that's impacting W&P primarily in the water space. So no change to our expectations that we will get the orders in from the key distributors towards the end of this quarter and be able to ship those to see a ramp sequentially in Water and then a further ramp as you head into the second half.

是的。那裡沒有變化。因此，我們第一季在中國看到的銷售成長主要來自 E&I。正如我所提到的，我們在中國的銷售量成長了十幾歲。我們仍然看到工業疲軟主要影響水領域的 W&P。因此，我們的預期不會改變，即我們將在本季度末從主要分銷商收到訂單，並能夠將這些訂單運送到 Water 中，然後在進入下半年時進一步增加。

Your next question comes from the line of Frank Mitsch of Fermium Research.

您的下一個問題來自費米研究中心的 Frank Mitsch。

Lori, if I could follow up on a free cash flow question. What are your expectations? You did 86% free cash flow conversion in 1Q. What is your expectations for 2024?

Lori，我可否跟進自由現金流問題。您的期望是什麼？您在第一季實現了 86% 的自由現金流轉換。您對 2024 年有什麼期望？

Yes. I think we'll be at or near our target of greater than 90%. So I was really pleased with the Q1 performance of 86%. That's a sizable improvement from where we were last year, which was around 45%. I do expect to take a little bit of a dip down in Q2, really reflecting the payment of our biannual interest expense. So that's about $200 million. We pay it in May and in November. So we'll see a headwind in Q2. But overall, I expect it to deliver nice free cash flow conversion for the year really around the target.

是的。我認為我們將達到或接近超過 90% 的目標。所以我對第一季 86% 的表現感到非常滿意。與去年的 45% 左右相比，這是一個相當大的進步。我確實預計第二季會略有下降，這確實反映了我們每年兩次的利息支出的支付。大約是 2 億美元。我們在五月和十一月支付。因此，我們將在第二季度看到逆風。但總體而言，我預計它將在今年實現良好的自由現金流轉換，真正實現目標。

Terrific. And Ed, you commented multiple times on how progress -- that you're seeing the progress in Asia, especially in China. The year-over-year negative deltas has been lessening down to 4% organic decline in 1Q. Are you anticipating that to be flat or up in 2Q and beyond in terms of the year-over-year comp?

了不起。艾德，您多次評論了進展——您看到了亞洲，尤其是中國的進展。第一季年比負增量已縮小至 4%。您預計第二季及以後的年比情況會持平還是上升？

Yes. We expect overall China to be both price and volume and currency headwinds about flat for the year. So as you had mentioned in the Q1 numbers, we were up in volume. But overall, it was about flat with the currency headwinds. So yes, an improvement in volume that we expect to see and some currency headwinds as the year goes on.

是的。我們預計今年中國整體的價格、數量和貨幣阻力將基本持平。正如您在第一季的數據中提到的，我們的銷售量有所增加。但整體而言，與貨幣不利因素持平。所以，是的，隨著時間的推移，我們預計會看到交易量的改善和一些貨幣阻力。

Your next question comes from the line of Stephen Byrne of Bank of America.

你的下一個問題來自美國銀行的史蒂芬‧伯恩。

The 3-year stack on volumes in your Water & Protection segment is flat. The losses over the last 4 or 5 quarters essentially offset the gains in 2021 and you had kind of flat volumes in '22. So just a question about that. Do you see that as suggesting just modest underlying volume growth? Or do you think that there might be some losses to generic products in that segment? And did you have visibility on those inventory levels that were -- that have been destocked now?

水與保護領域的 3 年銷售量持平。過去 4 或 5 個季度的損失基本上抵消了 2021 年的收益，並且 22 年的銷量持平。所以只是一個問題。您是否認為這表明基礎銷量僅溫和增長？或者您認為該細分市場的仿製藥可能會出現一些損失？您是否了解現在已經去庫存的庫存水準？

Yes. I mean, I think the history has been impacted a lot by COVID. So we saw unwind of the garments that were a sizable benefit during the 2020 timeframe when you saw an unwind, not unlike most of the peers out there that saw a run-up from the garment perspective. And then once we moved through that, then we transitioned into the general industrial destock. So I think we need to look into 2025 to really get a good read on the volumes in that business.

是的。我的意思是，我認為歷史受到了新冠疫情的極大影響。因此，我們看到了服裝的放鬆，這在 2020 年的時間範圍內是一個相當大的好處，就像大多數同行從服裝的角度看到的增長一樣。一旦我們完成了這個任務，我們就過渡到一般工業去庫存。因此，我認為我們需要展望 2025 年，以便真正深入了解該業務的銷售量。

And right now, we're expecting low to mid-single-digit volume growth in 2025 off of a more normal macro. So no concerns overall around the efficacy of those products in the market. It's really just getting beyond those chunky one-timers around COVID and then the broader industrial destock to be able to see the true growth profile of that business.

目前，我們預計在更正常的宏觀經濟背景下，2025 年銷售量將出現低至中個位數的成長。因此，整體而言，市面上這些產品的功效無需擔心。實際上，只有超越那些圍繞新冠疫情的一次性企業，然後是更廣泛的工業去庫存，才能看到該業務的真正成長狀況。

And then Kalrez and Tedlar, these are both

然後是 Kalrez 和 Tedlar，他們都是

fluoropolymer products. Just a question for you on that. Do you have any customers that are saying, I'm going to switch to something else just to avoid the

含氟聚合物產品。只是想問你一個問題。您是否有任何客戶說，我要改用其他產品以避免問題

fluoropolymer issue? And how are you managing your own wastewater from the manufacturing of those products?

含氟聚合物問題？您如何管理這些產品製造過程中產生的廢水？

No. I mean, in fact, in Tedlar, we're actually seeing some questions around. It is a PFAS-free, so there's some opportunity there to maybe pick up some share on the Advanced Materials side or the PV side and be opportunistic. And I know directly back from customers, and obviously, we published our sustainability report earlier this week. There's a lot of examples in there around our commitments to that as well as just overall water key drivers around the sustainability footprint.

不，我的意思是，事實上，在 Tedlar，我們確實看到了一些問題。它不含 PFAS，因此有機會在先進材料方面或光伏方面獲得一些份額並投機取巧。我直接從客戶那裡得知，顯然，我們本週稍早發布了永續發展報告。其中有許多關於我們對此的承諾的例子，以及圍繞永續發展足跡的整體水關鍵驅動因素。

And our last question comes from the line of Laurence Alexander from Jefferies LLC.

我們的最後一個問題來自 Jefferies LLC 的 Laurence Alexander。

Just a quick one on the electronics side. How far do you see the growth trajectory for that business? Or how much can you expand it before you need to do a significant round of CapEx additions?

簡單介紹一下電子方面的狀況。您認為該業務的成長軌跡有多遠？或者在需要進行一輪重要的資本支出增加之前，您可以將其擴展多少？

Yes. The good news on the E&I side, by the way, which is very different than the W&P side, they're not heavy assets. More of our CapEx on the electronics side, Laurence, actually goes into our testing equipment. We have to have very state-of-the-art testing equipment in the key regions where our customers are. And so that's where we'll add some CapEx over time. But we can kind of modularly upgrade the electronics manufacturing locations. So that's not going to be a big CapEx spend for us.

是的。順便說一句，E&I 方面的好消息與 W&P 方面非常不同，它們不是重資產。勞倫斯，我們在電子方面的更多資本支出實際上用於我們的測試設備。我們必須在客戶所在的關鍵地區擁有非常先進的測試設備。因此，隨著時間的推移，我們將增加一些資本支出。但我們可以對電子製造地點進行模組化升級。因此，這對我們來說不會是一大筆資本支出。

But my gut is we'll be looking at some expansion work here as we see this kind of super cycle coming on the semi side. So that's -- by the way, if this were like our Tyvek business, as you know, we're launching [Lynade] over in Luxembourg. We've already done our first test runs of product, by the way, which has gone very well, but that project was $450 million. We don't have anything like that on the electronics side. So that's good and it's quicker to upgrade, the manufacturing capacity also in the electronics side. So we'll stay on top of that as we see this growth over the next steady years to come.

但我的直覺是，我們將在這裡關註一些擴展工作，因為我們看到這個超級循環即將出現在半邊。順便說一句，如果這就像我們的 Tyvek 業務一樣，如您所知，我們將在盧森堡推出 [Lynade]。順便說一句，我們已經完成了產品的第一次測試，進展非常順利，但該專案耗資 4.5 億美元。我們在電子方面沒有類似的東西。所以這很好，而且升級速度更快，電子方面的製造能力也是。因此，當我們看到未來幾年的穩定成長時，我們將繼續關注這一點。

There are no further questions at this time, so I'd like to hand the call back to Chris Mecray.

目前沒有其他問題，所以我想將電話轉給 Chris Mecray。

Okay. Thank you, everybody, for joining the call. We appreciate your interest. And as always, we'll post a copy of the transcript on the DuPont IR website. This concludes the call. Thank you.

好的。謝謝大家加入這通通話。我們感謝您的關注。像往常一樣，我們將在杜邦 IR 網站上發布文字記錄副本。通話就此結束。謝謝。

That does conclude our conference for today. Thank you for participating. You may now all disconnect.

我們今天的會議到此結束。感謝您的參與。你們現在可以斷開連結了。