艾默生電氣 (EMR) 2022 Q3 法說會逐字稿

Good morning, and welcome to the Emerson Third Quarter 2022 Earnings Conference Call. (Operator Instructions) Please note this event is being recorded.

早上好，歡迎參加艾默生 2022 年第三季度收益電話會議。 （操作員說明）請注意正在記錄此事件。

I would like to turn the conference over to Colleen Mettler. Please, go ahead.

我想把會議交給科琳·梅特勒。請繼續。

Good morning. Thank you for joining Emerson's Third Quarter's Fiscal 2022 Earnings Conference Call. Today, I am joined by President and Chief Executive Officer, Lal Karsanbhai; Chief Financial Officer, Frank Dellaquila; and Chief Operating Officer, Ram Krishnan. As always, I encourage everyone to follow along with the slide presentation, which is available on our website.

早上好。感謝您參加艾默生第三季度 2022 財年收益電話會議。今天，總裁兼首席執行官 Lal Karsanbhai 加入了我的行列；首席財務官弗蘭克·德拉奎拉；和首席運營官拉姆克里希南。與往常一樣，我鼓勵大家關注我們網站上提供的幻燈片演示。

Please join me on Slide 2. This presentation may include forward-looking statements, which contain a degree of business risks and uncertainties. Please take time to read the safe harbor statement and note on the non-GAAP measures.

請和我一起看幻燈片 2。本演示文稿可能包括前瞻性陳述，其中包含一定程度的商業風險和不確定性。請花時間閱讀安全港聲明和關於非公認會計原則措施的注意事項。

I will now pass the call over to Emerson's President and CEO, Lal Karsanbhai, for opening remarks. .

現在，我將把電話轉給艾默生的總裁兼首席執行官 Lal Karsanbhai 做開場白。 .

Thank you, Colleen, and good morning, everyone. I'd like to begin by thanking the nearly 90,000 Emerson employees around the world for their tremendous effort, passion and commitment to deliver the solid results we will speak about today.

謝謝你，科琳，大家早上好。首先，我要感謝全球近 90,000 名艾默生員工，他們付出了巨大的努力、熱情和承諾，以實現我們今天將要談到的可靠成果。

Over the past 4 months, I've had the opportunity to travel to several U.S. sites, including Houston, Chicago, Louisville, Ohio and Pittsburgh as well as visiting investors, customers and our teams in Germany, Denmark, Brazil and Mexico. I have to be honest, there is no substitute for being with our teams in person. I'm looking forward to this month's trips to India and Singapore. And I'd also like to thank our Board of Directors for their support and our shareholders for your trust in us.

在過去的 4 個月裡，我有機會訪問了美國的幾個站點，包括休斯頓、芝加哥、路易斯維爾、俄亥俄和匹茲堡，並拜訪了德國、丹麥、巴西和墨西哥的投資者、客戶和我們的團隊。老實說，沒有什麼可以替代親自與我們的團隊在一起的。我期待著這個月去印度和新加坡的旅行。我還要感謝我們董事會的支持和股東對我們的信任。

As an organization, we continue to make significant progress on all of our strategic imperatives aimed to accelerate value creation, culture, portfolio and execution. Our culture evolution continues in earnest. We are launching our efforts with new listening tools, a modernized employee value proposition and a new reinvigorated talent engine. To this end, on August 1, we hired our first Vice President of Culture, Kelly Clark, who joins our company at a crucial point in time and brings unparalleled experience and cultural transformation.

作為一個組織，我們在旨在加速價值創造、文化、投資組合和執行的所有戰略要務上繼續取得重大進展。我們的文化進化繼續認真。我們正在通過新的傾聽工具、現代化的員工價值主張和重新煥發活力的新人才引擎來展開我們的努力。為此，我們在 8 月 1 日聘請了我們的第一任文化副總裁 Kelly Clark，他在關鍵時刻加入我們公司，帶來了無與倫比的經驗和文化轉型。

Turning to Slide 3. Emerson's portfolio transformation is well underway. And in the quarter, we made significant progress to create a higher growth, more diversified cohesive portfolio. We took 5 important steps: #1, on May 16, we closed the AspenTech transaction. We are very excited about the synergy opportunities, which are sized at $160 million in the funnel and the projects won to date; #2, AspenTech announced an agreement to acquire Micromine, the first transaction under the new structure. Micromine is an Australian-based exploration to optimization, software offering, well positioned to benefit from the minerals required to fuel the renewable revolution.

轉到幻燈片 3。艾默生的投資組合轉型正在進行中。在本季度，我們在創建更高增長、更多元化的凝聚力投資組合方面取得了重大進展。我們採取了 5 個重要步驟： #1，5 月 16 日，我們完成了 AspenTech 交易。我們對協同機會感到非常興奮，這些機會在渠道中的規模為 1.6 億美元，並且迄今為止贏得的項目； #2，AspenTech 宣布了一項收購 Micromine 的協議，這是新結構下的第一筆交易。 Micromine 是一家位於澳大利亞的優化軟件產品探索公司，能夠從推動可再生革命所需的礦物中獲益。

#3, we announced and closed the acquisition of Fluxa, a critical life science process knowledge business, highly synergistic with our industry-leading DeltaV system; #4, on May 31, we closed the TOD sale; and last, 5, yesterday, we announced the sale of InSinkErator to Whirlpool Corporation for $3 billion or an 18.1% multiple of adjusted EBITDA. Prior to turning to Slide 4, allow me to say a few words about our execution. This was a solid quarter, and I feel incredibly positive as we go into the fourth and into 2023.

#3，我們宣布並完成了對關鍵生命科學過程知識業務 Fluxa 的收購，該業務與我們行業領先的 DeltaV 系統高度協同； #4，5 月 31 日，我們結束了 TOD 銷售；最後，5 日，我們宣布以 30 億美元或調整後 EBITDA 的 18.1% 倍數將愛適易出售給惠而浦公司。在轉到幻燈片 4 之前，請允許我對我們的執行說幾句話。這是一個穩健的季度，當我們進入第四季度和 2023 年時，我感到非常積極。

June trailing 3-month underlying orders were plus 10%, driven by Automation Solutions at plus 13%. Third quarter underlying sales grew 7%, driven by the Americas, which grew 14%. This performance occurred despite lockdowns in Shanghai, which impacted 6 plants for 2 months and continued challenges with electronics availability.

在自動化解決方案的推動下，6 月過去 3 個月的基礎訂單增長了 10%，增長了 13%。在美洲增長 14% 的推動下，第三季度的基本銷售額增長了 7%。儘管上海的封鎖影響了 6 家工廠達 2 個月，並且電子產品供應持續面臨挑戰，但仍取得了這種業績。

Together, the 2 factors resulted in a $180 million sales impact in the quarter or 5 points to the Automation Solutions segment sales. Adjusted EBITDA improved 20 basis points with improvement in both platforms. Operating leverage in the quarter was 27%, and we are well on track to exceed our 30% target for 2022.

這兩個因素加在一起，在本季度產生了 1.8 億美元的銷售影響，或者對自動化解決方案部門的銷售額產生了 5 個百分點的影響。隨著兩個平台的改善，調整後的 EBITDA 提高了 20 個基點。本季度的經營槓桿率為 27%，我們有望超過 2022 年 30% 的目標。

Adjusted EPS was $1.38, including $0.08 contribution from AspenTech.

調整後每股收益為 1.38 美元，其中包括來自 AspenTech 的 0.08 美元貢獻。

Although free cash flow conversion in the quarter was a 100% adjusted for nonoperating and onetime items. Operating cash flow was down, driven by working capital investments in inventory and receivables.

儘管本季度的自由現金流轉換為非經營性和一次性項目調整後的 100%。營運現金流下降，主要受存貨和應收賬款營運資本投資的推動。

Let's now turn to Slide 4, please. In addition to the portfolio, Emerson has also made tangible steps in our ESG journey. Recently, we have established a target to reach Net zero greenhouse gas emissions across our value chain by 2045. In the near term, our objective is to reach Net zero in our operations and reduced our Scope 3 emissions 25% by 2030. Our 2021 ESG report, which can be found on emerson.com, includes more detail on our target, which is aligned with the Net zero standards set by the science-based target initiative. Our goals are bold, and we have incredible -- a credible, credible road maps that include many of the solutions, technologies and expertise we offer our customers and the critical industries we serve.

請讓我們轉到幻燈片 4。除了投資組合，艾默生還在我們的 ESG 旅程中邁出了切實的步驟。最近，我們制定了到 2045 年在我們的價值鏈中實現溫室氣體淨零排放的目標。在短期內，我們的目標是到 2030 年在我們的運營中實現淨零排放，並將我們的範圍 3 排放量減少 25%。我們的 2021 ESG可在 emerson.com 上找到的報告包含有關我們目標的更多詳細信息，該目標符合基於科學的目標倡議制定的淨零標準。我們的目標很大膽，而且我們擁有令人難以置信的可靠路線圖，其中包括我們為客戶和我們服務的關鍵行業提供的許多解決方案、技術和專業知識。

Please turn to Slide 5. I am particularly excited about the opportunities in the renewable space. As I said, our portfolio is broadly relevant as an enabling technology across a broad segment of the world's economy. This includes electrification efforts such as heat pumps as well as sustain -- a strong sustainability funnel in automation solutions that has grown to $1.5 billion, inclusive of decarbonization, energy efficiency, emissions management and new energy investments in wind, hydro, solar and hydrogen.

請轉到幻燈片 5。我對可再生能源領域的機遇感到特別興奮。正如我所說，我們的產品組合作為一項支持技術廣泛適用於世界經濟的廣泛領域。這包括電氣化工作，例如熱泵和維持——自動化解決方案中強大的可持續性漏斗，已增長到 15 億美元，包括脫碳、能源效率、排放管理以及風能、水力、太陽能和氫能的新能源投資。

I'll share a few examples on this slide. First, starting on the left. Emerson was recently selected at Mitsubishi Power to automate the world's largest green hydrogen production and storage facility. The Advanced Clean Energy System hub will convert renewable energy into storable hydrogen, which can subsequently be dispatched and converted to electricity when required. Emerson Automation and software solutions were selected based on industry expertise in our leading digital portfolio. This is a first-in-kind facility, and we'll be capable of producing 100 tons of green hydrogen per day with storage capacity for 300 gigawatt hours of energy. That's equivalent to 150x the current lithium battery storage in the United States.

我將在這張幻燈片上分享幾個例子。首先，從左邊開始。艾默生最近被三菱電力選中，以實現世界上最大的綠色氫氣生產和儲存設施的自動化。先進的清潔能源系統中心將可再生能源轉化為可儲存的氫氣，隨後可以在需要時進行調度並轉化為電能。艾默生自動化和軟件解決方案的選擇基於我們領先的數字產品組合中的行業專業知識。這是一個首創的設施，我們將能夠每天生產 100 噸綠色氫氣，存儲容量為 300 吉瓦時。這相當於美國當前鋰電池存儲量的 150 倍。

Next, in the middle, along with Neste Engineering Solutions, we were chosen to provide automation technologies and software to fintoil for the world's third largest tall oil biorefinery. The advanced biofuel and biochemical facility will refine a byproduct of the wood pulping process to produce sustainable feedstock for biofuels, chemicals and pharmaceuticals. The expected annual capacity of 200,000 tons will create a 400,000 ton reduction in carbon emissions. That represents roughly 1% of Finland's total emissions.

接下來，在中間，我們與 Neste Engineering Solutions 一起被選中為世界第三大妥爾油生物精煉廠提供自動化技術和軟件。先進的生物燃料和生化設施將提煉木材製漿過程的副產品，以生產用於生物燃料、化學品和藥品的可持續原料。預計年產能20萬噸，可減少40萬噸碳排放。這約佔芬蘭總排放量的 1%。

Lastly, Emerson was selected by Albioma, a French energy provider to enable the transition of its flagship coal-fired Bois Rouge plant to 100% renewable energy. Emerson's automation system and software will help convert the existing coal-fired power plant controls to utilize biomass feedstock. In doing so, this project will result in a 640,000 ton reduction in carbon emissions, part of Albioma's plan to reach almost a 100% renewable energy by 2030. These projects and our Net zero targets represent our continued progress in our greening of and greening by framework that Mike Train has introduced.

最後，艾默生被法國能源供應商 Albioma 選中，以實現其旗艦燃煤 Bois Rouge 工廠向 100% 可再生能源的過渡。艾默生的自動化系統和軟件將幫助將現有的燃煤電廠控制轉換為利用生物質原料。通過這樣做，該項目將減少 640,000 噸碳排放，這是 Albioma 到 2030 年實現幾乎 100% 可再生能源計劃的一部分。這些項目和我們的淨零目標代表了我們在綠化和綠化方面的持續進展Mike Train 引入的框架。

And lastly, before I turn it over to Frank, on Slide 6, I'd like to highlight a few exciting investments we've made in operations around the world. Our regionalization strategy and operational excellence served us well through the pandemic and in the current challenging supply chain environment. We continue to drive operational excellence with investments like the 3 shown here.

最後，在我把它交給弗蘭克之前，在幻燈片 6 上，我想強調一下我們在全球運營方面所做的一些令人興奮的投資。在大流行和當前充滿挑戰的供應鏈環境中，我們的區域化戰略和卓越運營為我們提供了良好的服務。我們繼續通過此處所示的 3 項投資來推動卓越運營。

Starting on the left. Earlier this month, Emerson officially opened our new professional tools facility in Ash Flat, Arkansas. This is a 277,000 square foot facility, which will be used mainly for our Greenlee tools for electrical applications across North America. It currently employs a 150 employees, and will double the employment over the next 4 years. I'm very excited about this investment, and we were honored to have Governor Asa Hutchinson join us for the ribbon cutting.

從左邊開始。本月早些時候，艾默生在阿肯色州的 Ash Flat 正式開設了我們新的專業工具工廠。這是一個 277,000 平方英尺的設施，將主要用於我們的 Greenlee 工具，用於北美的電氣應用。它目前擁有 150 名員工，並將在未來 4 年內將員工人數翻一番。我對這項投資感到非常興奮，我們很榮幸州長 Asa Hutchinson 與我們一起剪彩。

Next, in the middle, Emerson recently opened its Mahindra City, Chennai, India facility for Fluid Control pneumatics. This is a 145,000 square foot facility which will help serve cross-sell, hybrid and discrete customers in India and surrounding Asian countries.

接下來，在中間，艾默生最近在印度欽奈的 Mahindra 市開設了流體控制氣動裝置。這是一個 145,000 平方英尺的設施，將有助於為印度和周邊亞洲國家的交叉銷售、混合和離散客戶提供服務。

And then lastly, we introduced a new Saltillo, Mexico manufacturing facility for our specialty valve technologies, assemblies and actuators using life sciences, metals and mining and other key industries. As with all these facilities, Saltillo will use state-of-the-art factory automation capabilities, environmental designs and include our own Emerson technology.

最後，我們在墨西哥薩爾蒂約引入了一個新的製造工廠，用於我們的特種閥門技術、組件和執行器，這些閥門技術、組件和執行器使用生命科學、金屬和採礦以及其他關鍵行業。與所有這些設施一樣，Saltillo 將使用最先進的工廠自動化能力、環境設計並包括我們自己的艾默生技術。

As we close out 2022, I feel extremely positive about where we are as a business and where we are going. Our goal is accelerated value creation and we are executing on all the critical dimensions.

隨著我們 2022 年的結束，我對我們作為一家企業的現狀以及我們的發展方向感到非常樂觀。我們的目標是加速價值創造，我們正在所有關鍵維度上執行。

With that, I will now pass the call over to Frank Dellaquila, who'll go through our detailed financial results in the third quarter.

有了這個，我現在將把電話轉給 Frank Dellaquila，他將在第三季度查看我們詳細的財務業績。

Thank you, Lal, and good morning, everyone. If you would please turn to Slide 8. Before I comment on the third quarter, I'd like to take a minute to ground everyone on 3 significant events that affected the reported results. First, on May 16, Emerson completed its transaction with AspenTech. We contributed our 2 software businesses, OSI and GSS, to AspenTech in addition to $6 billion in cash in exchange for a 55% ownership position in the new AspenTech.

謝謝你，Lal，大家早上好。如果您願意，請轉到幻燈片 8。在我對第三季度發表評論之前，我想花一點時間讓大家了解影響報告結果的 3 個重大事件。首先，5月16日，艾默生完成了與AspenTech的交易。除了 60 億美元現金外，我們還向 AspenTech 貢獻了我們的 2 個軟件業務 OSI 和 GSS，以換取新 AspenTech 55% 的所有權。

Please note that GSS has been renamed to Subsurface Science & Engineering, or SSC for short. OSI and SSC, which were previously reported in our Automation Solutions platform have now been moved to a newly created reporting segment within Emerson called AspenTech. For accounting purposes, our contributed businesses will be acquiring entity. Therefore, our third quarter is the sum of our contributed businesses for the entire quarter and heritage AspenTech results from the May 16 closing date.

請注意，GSS 已重命名為 Subsurface Science & Engineering，簡稱 SSC。之前在我們的自動化解決方案平台中報告的 OSI 和 SSC 現在已移至艾默生新創建的報告部門，稱為 AspenTech。出於會計目的，我們貢獻的業務將是收購實體。因此，我們的第三季度是我們整個季度貢獻的業務和從 5 月 16 日截止日期開始的傳統 AspenTech 業績的總和。

Stated simply, our third quarter results include a full quarter of our contributed businesses and approximately 45 days of heritage AspenTech. As a result, year-over-year comparisons are not meaningful as the prior year includes only our contributed businesses. I encourage you to review the slides Colleen and her team have included in the appendix, which show the details of the sales by quarter and map the AspenTech financial results into our financials.

簡單地說，我們第三季度的業績包括我們貢獻的整個季度的業務和大約 45 天的 AspenTech 遺產。因此，同比比較沒有意義，因為上一年只包括我們貢獻的業務。我鼓勵您查看 Colleen 和她的團隊在附錄中包含的幻燈片，這些幻燈片顯示了按季度劃分的銷售細節，並將 AspenTech 財務結果映射到我們的財務中。

As a reminder, AspenTech's results are fully consolidated with Emerson line by line with the 45% noncontrolling interest deducted from earnings used to calculate earnings per share and reflected in a single line in the equity section of the balance sheet. And finally, on that subject, our contributed businesses are no longer included in our usual metrics for Automation Solutions.

提醒一下，AspenTech 的業績與艾默生完全合併，其中 45% 的非控制性權益從用於計算每股收益的收益中扣除，並反映在資產負債表的權益部分的單行中。最後，在這個主題上，我們貢獻的業務不再包含在我們通常的自動化解決方案指標中。

The second significant item is the Therm-O-Disc divestiture, which was previously reported in Commercial & Residential Solutions. The transaction closed on May 31 and the business is no longer included in underlying orders, underlying sales or backlog calculations. We reported a $428 million after-tax gain equivalent to $0.72.

第二個重要項目是 Therm-O-Disc 資產剝離，此前曾在商業和住宅解決方案中進行過報導。該交易於 5 月 31 日結束，該業務不再包含在基礎訂單、基礎銷售或積壓計算中。我們報告了 4.28 億美元的稅後收益，相當於 0.72 美元。

And finally, we announced on the May call, our decision to exit Russia. At that time, we absorbed several cents operationally within the guidance that we gave. This quarter, we are reporting a $162 million charge which is a $0.29 earnings per share impact, and we are debooking $132 million of orders that will not be converted to sales. The impact of the TOD gain and the Russia related charge will be removed from adjusted earnings.

最後，我們在 5 月的電話會議上宣布了我們退出俄羅斯的決定。當時，我們在我們給出的指導下在運營上吸收了幾美分。本季度，我們報告了 1.62 億美元的費用，這對每股收益產生了 0.29 美元的影響，我們正在取消 1.32 億美元的訂單，這些訂單不會轉化為銷售額。 TOD收益和俄羅斯相關費用的影響將從調整後的收益中消除。

So with that background, if you would please turn to Slide 9, and we'll talk about the quarter. As Lal said, we believe we had a very good quarter. There are operations challenges we could not anticipate or building to the guide, but looking through them, we are very pleased with the underlying operational performance and we believe we can deliver results for 2022 that are in the range of what we told you in May with the exception of cash flow.

因此，在這種背景下，如果您願意請轉到幻燈片 9，我們將討論該季度。正如拉爾所說，我們相信我們有一個非常好的季度。存在我們無法預料或無法構建到指南中的運營挑戰，但縱觀這些挑戰，我們對基本的運營績效感到非常滿意，我們相信我們可以在 2022 年實現我們在 5 月份告訴您的範圍內的結果現金流量除外。

Demand continued to be strong and broad-based and consistent with our previous comments around our key end markets. We missed the underlying sales guidance entirely due to the extended lockdown in Shanghai and some continued challenges around electronic components, neither of which we expected when we guided in May. Together, we estimate these 2 headwinds reduce sales by about $180 million in the quarter, which equates to 4 points of growth for total Emerson, and we estimate that the leverage on those sales was about 40%.

需求繼續強勁且基礎廣泛，與我們之前對主要終端市場的評論一致。我們完全錯過了基本的銷售指導，因為上海的封鎖時間延長以及圍繞電子元件的一些持續挑戰，我們在 5 月份指導時都沒有預料到這些。我們估計這兩個不利因素使本季度的銷售額減少了約 1.8 億美元，這相當於艾默生的 4 個增長點，我們估計這些銷售額的槓桿率約為 40%。

Our guide for the balance of the year incorporates our expectation at our manufacturing capability in China and our component availability will support our sales plan for the remainder of the year, Ram will talk about both of these subjects in more detail in a few minutes. As a result, underlying sales were 7% falling short of our third quarter guidance by 3 points at the midpoint.

我們對今年剩餘時間的指導包含了我們對我們在中國的製造能力的期望，我們的組件可用性將支持我們今年剩餘時間的銷售計劃，Ram 將在幾分鐘內更詳細地討論這兩個主題。結果，基礎銷售額比我們第三季度的指導值低 7%，比我們的中點低 3 個百分點。

There's a lot of good news within these numbers. The business has implemented the planned pricing actions realizing 6 points of price overall and price less net material inflation significantly improved versus our prior quarters according to the plan. Adjusted segment EBITDA improved 170 basis points, driven mainly by the addition of AspenTech, which added 150 basis points.

這些數字中有很多好消息。根據計劃，該業務已實施計劃的定價行動，實現了 6 個點的總體價格和減去淨材料通脹的價格與我們之前的幾個季度相比顯著改善。調整後的部門 EBITDA 提高了 170 個基點，主要是由於 AspenTech 的增加，後者增加了 150 個基點。

Operations improved 20 basis points, as Lal mentioned, despite the $180 million of missed sales and the deleverage on them as price realization and ongoing cost containment measures more than offset elevated inflationary pressures from wages and freight. Adjusted earnings per share was $1.38, up 16% versus prior year, and that includes $0.08 from the AspenTech segment, and I will provide details in a moment.

正如 Lal 所說，儘管由於價格實現和持續的成本控制措施超過了抵消工資和運費帶來的通脹壓力，導致 1.8 億美元的銷售錯失和去槓桿化，但運營改善了 20 個基點。調整後的每股收益為 1.38 美元，比去年同期增長 16%，其中包括來自 AspenTech 部門的 0.08 美元，我稍後將提供詳細信息。

Free cash flow was down 36% versus prior year mainly due to higher working capital from increased sales and continued supply chain constraints that cause more investment in inventory than we would have expected.

自由現金流較上年下降 36%，主要是由於銷售增加和持續的供應鏈限制導致營運資金增加，導致庫存投資超出我們的預期。

In May, we reduced our cash flow guidance modestly with the expectation that the balance sheet release of working capital would occur during this fiscal year, but the continued operational challenges pushed this release in our estimation into 2023. Nonetheless, free cash flow conversion was 90% in the third quarter, excluding the non-operating items from net income, specifically, the TOD gain and adding back the impact to net earnings of the Russia exit write-offs.

5 月，我們適度降低了現金流量指引，預計本財年將發布營運資金的資產負債表，但持續的運營挑戰將我們估計的這一發布推至 2023 年。儘管如此，自由現金流轉換為 90第三季度的百分比，不包括淨收入中的非經營性項目，特別是TOD收益，並增加了俄羅斯退出核銷對淨收益的影響。

Turning to the business results. Automation Solutions underlying sales were up 4%, and as Lal said, up significantly more, another 5 points of growth if we were to adjust for the loss of the sales in China and due to the supply chain disruptions. Process hybrid and discrete sales were all up, led by energy, chemical and power and renewables segments. Sales in the Americas were up double digits, while Europe mainly due to Russia and Asia, mainly due to the Shanghai lockdowns were down year-over-year.

轉向業務結果。自動化解決方案的基礎銷售額增長了 4%，而且正如 Lal 所說，如果我們要針對中國銷售損失和供應鏈中斷進行調整，則增長幅度要大得多，再增長 5 個百分點。在能源、化學和電力以及可再生能源領域的帶動下，過程混合和離散的銷售額都出現了增長。美洲的銷售額增長了兩位數，而歐洲的銷售額主要是由於俄羅斯和亞洲，主要是由於上海的封鎖同比下降。

Price realized in the third quarter was 3%, driven by programs instituted earlier in the year and accelerated last quarter to address sustained electronics inflation and continued wage and freight increases. Backlog increased by a $100 million in the quarter to $6.2 billion. This elevated level of backlog will support our sales plan for the fourth quarter and into 2023.

第三季度實現的價格為 3%，這是由今年早些時候制定的計劃推動的，並在上個季度加速，以解決持續的電子產品通脹以及工資和運費的持續增長。本季度積壓訂單增加了 1 億美元，達到 62 億美元。這種高水平的積壓將支持我們第四季度和 2023 年的銷售計劃。

As I said at the beginning, backlog has been revised to reflect $132 million e-booking in Russia and removal of the businesses contributed to AspenTech. Automation Solutions adjusted EBITDA improved 70 basis points versus the prior year due to price, leverage, favorable mix and cost controls despite the lower-than-anticipated sales volume.

正如我在開始時所說的那樣，積壓訂單已被修改，以反映俄羅斯 1.32 億美元的電子預訂以及為 AspenTech 做出貢獻的業務的移除。儘管銷量低於預期，但由於價格、槓桿、有利的組合和成本控制，自動化解決方案調整後的 EBITDA 比上一年提高了 70 個基點。

Turning to Commercial & Residential Solutions. The business continues to grow strongly, up double digits. Underlying sales increased 13%, including 12 points of price realization. Sales were up in all world areas, except China due to the COVID-19 lockdowns and softening demand. As we expected, Climate Technologies aftermarket and commercial strength offset moderating demand in the residential portion of the business.

轉向商業和住宅解決方案。業務繼續強勁增長，增長兩位數。基礎銷售額增長 13%，包括 12 個價格實現點。由於 COVID-19 封鎖和需求疲軟，除中國外，世界所有地區的銷售額均出現增長。正如我們預期的那樣，氣候技術的售後市場和商業實力抵消了住宅業務需求放緩的影響。

In Tools & Home Products, nonresidential project activity remains strong. However, weakness in the retail segments continues. Backlog was flat in the quarter at $1.3 billion, after removing the impact of the divested Therm-O-Disc business.

在工具和家居產品方面，非住宅項目活動依然強勁。然而，零售領域的疲軟仍在繼續。剔除剝離的 Therm-O-Disc 業務的影響後，本季度的積壓訂單持平，為 13 億美元。

Adjusted EBITDA for the platform was down 50 basis points, consistent with our expectations for the quarter. Within that, Climate Tech was approximately flat as 9 points of price realization and ongoing cost reductions drove a significant improvement in sequential leverage and profit margin for that segment. The AspenTech segment contributed $239 million of sales at nearly 54% adjusted EBITDA. Once again, these sales represent a full quarter of results from Emerson's contributed businesses in addition to Heritage AspenTech from the May 16 closing date through the end of the quarter.

該平台的調整後 EBITDA 下降了 50 個基點，與我們對該季度的預期一致。其中，Climate Tech 基本持平，因為實現了 9 個點的價格和持續的成本降低推動了該部門連續槓桿率和利潤率的顯著改善。 AspenTech 部門貢獻了 2.39 億美元的銷售額，調整後 EBITDA 接近 54%。從 5 月 16 日截止日期到本季度末，這些銷售額再一次代表了艾默生貢獻的業務以及 Heritage AspenTech 的整個季度業績。

The heritage AspenTech sales for the period covered the second half of AspenTech's fourth fiscal quarter. and reflect strong revenue growth based on normal seasonality in the business and the applicable revenue recognition rules for software sales. Together, we're off to a great start and we look forward to driving the synergies we identified and the diversification that we envisioned for our combined businesses.

這一時期的傳統 AspenTech 銷售額涵蓋了 AspenTech 第四財季的下半年。並反映基於業務正常季節性和適用的軟件銷售收入確認規則的強勁收入增長。我們一起有了一個良好的開端，我們期待推動我們確定的協同效應和我們為合併後的業務設想的多元化。

If you would, please turn to Page 10 for the EPS walk. As I said, adjusted EPS was $1.38, up 16%. There are several non-operating balance sheet items that net out to $0.02, notably stock compensation -- we still have 2 plans that are on a mark-to-market and they were a significant favorable item in the quarter.

如果您願意，請轉到第 10 頁進行 EPS 步行。正如我所說，調整後的每股收益為 1.38 美元，增長 16%。有幾個非經營性資產負債表項目淨值為 0.02 美元，尤其是股票薪酬——我們仍有 2 個按市值計價的計劃，它們在本季度是一個重要的有利項目。

Automation Solutions and Commercial residential operations leveraged at nearly 30% and contributed $0.09 to adjusted earnings per share versus prior year. AspenTech contributed $0.08 driven by the strong fourth quarter in the heritage business, net of $0.01 of interest expense attributable to the transaction. We continue to deal with various operational challenges, returning to supply chain, logistics and labor.

自動化解決方案和商業住宅業務的槓桿率接近 30%，與去年相比為調整後的每股收益貢獻了 0.09 美元。受傳統業務強勁的第四季度推動，AspenTech 貢獻了 0.08 美元，扣除了交易引起的 0.01 美元的利息費用。我們繼續應對各種運營挑戰，回歸供應鏈、物流和勞動力。

I'm going to hand off to Ram to comment on these issues as they affected the quarter and how we think we can navigate them for the balance of the year.

我將把這些問題交給 Ram 來評論這些問題，因為它們影響了本季度，以及我們認為我們可以如何在今年餘下的時間裡駕馭它們。

Thank you, Frank. Please turn to Slide 11. Consistent with previous quarters, the operating environment remained challenging in the third quarter, especially in terms of electronic component availability and the impact of the China COVID-19 lockdowns, which lasted much longer than we anticipated going into the quarter.

謝謝你，弗蘭克。請轉到幻燈片 11。與前幾個季度一樣，第三季度的運營環境仍然充滿挑戰，尤其是在電子元件的可用性和中國 COVID-19 封鎖的影響方面，這比我們預期進入該季度的時間要長得多.

Starting with the positives. Freight and labor costs and commodity prices are all trending in the right direction and provided some relief to the overall environment. Labor, which is primarily an issue for us in our Midwestern U.S. plants has improved from the winter months and the COVID-related challenges we have experienced. And commodity prices, mainly steel, copper and plastic resins have all continued to decline as we had anticipated.

從積極的方面開始。貨運和勞動力成本以及商品價格都朝著正確的方向發展，並為整體環境提供了一些緩解。勞動力，這對我們在美國中西部的工廠來說主要是一個問題，從冬季和我們所經歷的與 COVID 相關的挑戰中得到了改善。大宗商品價格，主要是鋼鐵、銅和塑料樹脂，都像我們預期的那樣繼續下跌。

However, the 2 most impactful items in the quarter were the extended China lockdowns and the electronic component shortages. As we discussed in May, our expectation was China would begin reopening in the middle of May with full operation near the end of the month. As it played out, reopening was delayed until the end of May with full operation not until early June.

然而，本季度影響最大的兩個項目是中國延長封鎖和電子元件短缺。正如我們在 5 月份討論的那樣，我們的預期是中國將在 5 月中旬開始重新開放，並在月底前全面投入運營。隨著時間的推移，重新開放被推遲到 5 月底，直到 6 月初才全面運行。

During this time, we did not expect our employees to work in closed loop operations, which would have required extended overnight stays in our factories. Therefore, we had little to no operation during the lockdowns. This delay in reopening represented roughly a $100 million in lost sales in the quarter, primarily from our 6 manufacturing plants in the Shanghai area.

在此期間，我們沒想到我們的員工會在閉環操作中工作，這將需要在我們的工廠中延長過夜時間。因此，我們在封鎖期間幾乎沒有任何操作。重新開放的延遲代表了本季度大約 1 億美元的銷售額損失，主要來自我們在上海地區的 6 家製造工廠。

We expect most of these sales to be made up in the fourth quarter. The China lockdowns and other supply constraints contributed to further electronic component availability issues. While lead times remain stable at elevated levels, capacity challenges at our critical suppliers led to more de-commits in the quarter, and we were forced to go to the open market to procure components more than we had anticipated. This drove elevated purchase price variances and challenges in converting our backlog to sales, leading to an $80 million sales miss in the quarter, primarily in Automation Solutions.

我們預計這些銷售額的大部分將在第四季度彌補。中國的封鎖和其他供應限制導致進一步的電子元件可用性問題。雖然交貨時間在較高水平上保持穩定，但我們關鍵供應商的產能挑戰導致本季度更多的解除承諾，我們被迫去公開市場採購比我們預期的更多的組件。這推動了採購價格差異的增加以及將我們的積壓訂單轉化為銷售的挑戰，導致本季度出現 8000 萬美元的銷售損失，主要是在自動化解決方案方面。

Six critical suppliers for us account for about 90% of the component shortages we experienced in the quarter. Our supply chain teams have stabilized the situation going into the fourth quarter using a structured approach to expedite, participating in supply assurance programs and driving purposeful executive engagement with these critical supply assuring up what is necessary for the end of the year.

對我們而言，六家關鍵供應商占我們本季度經歷的組件短缺的 90% 左右。我們的供應鏈團隊已經穩定了進入第四季度的情況，使用結構化的方法來加快速度，參與供應保證計劃並推動有目的的高管參與這些關鍵供應，以確保年底所需的東西。

Finally, our global operations and supply chain teams continue to do an outstanding job, effectively managing the ever-changing landscape, allowing us to execute successfully for our customers.

最後，我們的全球運營和供應鏈團隊繼續出色地完成工作，有效地管理不斷變化的環境，使我們能夠成功地為客戶執行任務。

I will now turn the call back over to Frank to take us through the '22 outlook.

我現在將把電話轉回弗蘭克，帶我們了解 22 年的前景。

Okay. Thank you, Ram. If you would, please turn to Slide 13. As we look towards the rest of the year and into 2023, demand continues to be strong with Emerson trailing 3-month underlying orders, up double digits versus prior year. June trailing 3-month orders for Automation Solutions were up 13% versus prior year, indicative of broad continued strength across the business.

好的。謝謝你，拉姆。如果您願意，請轉到幻燈片 13。在我們展望今年剩餘時間和 2023 年時，需求繼續強勁，艾默生過去 3 個月的基本訂單比上一年增長了兩位數。自動化解決方案 6 月份過去 3 個月的訂單較上年同期增長 13%，表明整個業務持續強勁增長。

Sustainability, decarbonization factory automation, modernizations and reassuring secular trends continue to drive investment decisions in key industries. We expect growth to continue in key process end markets like energy, chemicals and power and renewables and also expect favorable conditions in the life sciences and metals and mining markets, all of which will support growth into 2023.

可持續性、脫碳工廠自動化、現代化和令人放心的長期趨勢繼續推動關鍵行業的投資決策。我們預計能源、化學品、電力和可再生能源等關鍵流程終端市場將繼續增長，並預計生命科學、金屬和採礦市場的有利條件，所有這些都將支持到 2023 年的增長。

In Commercial & Residential Solutions, June trailing 3-month orders were up 5%, led by Climate Technologies, which was up 9%. Commercial, industrial, food, retail and other nonresidential end markets remain strong as project activity continues. Residential Climate business is showing some signs of moderation as we've expected and communicated, while our residential tools and home products business continues to soften as we first mentioned during the May call. This can be seen in the retail data, as inflation weakens demand in the housing-related and home improvement markets.

在商業和住宅解決方案方面，6 月份過去 3 個月的訂單增長了 5%，其中氣候技術公司增長了 9%。隨著項目活動的繼續，商業、工業、食品、零售和其他非住宅終端市場依然強勁。正如我們預期和傳達的那樣，住宅氣候業務顯示出一些溫和跡象，而我們的住宅工具和家居產品業務繼續疲軟，正如我們在 5 月電話會議中首次提到的那樣。這可以從零售數據中看出，因為通脹削弱了住房相關市場和家居裝修市場的需求。

Aftermarket sales remained strong due to record high temperatures globally and the European heat pump market is propelled by energy efficiency imperatives as well as the unusually warm weather as well in Europe.

由於全球創紀錄的高溫，售後市場銷售保持強勁，歐洲熱泵市場受到能源效率要求以及歐洲異常溫暖的天氣的推動。

You would please turn to Slide 14. We'll talk about the guidance update. So the revised guidance considers the continued robust underlying demand and balances it with the impact of the third quarter headwinds that we experienced. Emerson's underlying sales guidance has been moved to the low end of the range, updated to remove Therm-O-Disc and to remove the businesses that we contributed to AspenTech as part of the transaction as well as the continued supply chain constraints that Ram mentioned.

請轉到幻燈片 14。我們將討論指導更新。因此，修訂後的指引考慮了持續強勁的潛在需求，並將其與我們經歷的第三季度逆風的影響相平衡。艾默生的基本銷售指導已移至該範圍的低端，更新為刪除 Therm-O-Disc 並刪除了我們在交易中為 AspenTech 做出貢獻的業務以及 Ram 提到的持續供應鏈限制。

Automation Solutions 2022 underlying sales growth is now expected to be between 6% and 7%. We reduced the range modestly again to remove the businesses contributing to AspenTech and to recognize the third quarter impact of the ongoing challenges of supply chain constraints, principally in electronics. As Ram said, the China sales miss is expected to be recovered, but the challenges with electronics will extend beyond the end of the fiscal year.

自動化解決方案 2022 的潛在銷售增長現在預計在 6% 到 7% 之間。我們再次適度縮小範圍，以消除對 AspenTech 有貢獻的業務，並認識到供應鏈限制的持續挑戰對第三季度的影響，主要是在電子領域。正如 Ram 所說，預計中國銷售下滑的局面將得到彌補，但電子產品的挑戰將延續到本財年末。

Recalibration of the sales outlook is based on our projected ability to convert orders along with the strong underlying demand backdrop, both of which should be supportive going into 2023.

對銷售前景的重新調整是基於我們預計的訂單轉換能力以及強勁的潛在需求背景，這兩者都應該對 2023 年起到支撐作用。

In Commercial & Residential Solutions, we have raised the bottom end of the guide to reflect our confidence in the outlook for the balance of the year. The guide reflects continued strong price realization across the platform. The fourth quarter is expected to be strong for both platforms, Automation Solutions and Commercial & Residential Solutions supported by the solid demand and the record backlog.

在商業和住宅解決方案方面，我們提高了指南的底端，以反映我們對今年餘下時間前景的信心。該指南反映了整個平台持續強勁的價格實現。在強勁的需求和創紀錄的積壓訂單的支持下，自動化解決方案和商業與住宅解決方案這兩個平台預計第四季度都將表現強勁。

Inflationary pressures remain, but our pricing actions are expected to more than offset net material and other inflation. The guidance assumes no further impact on production of COVID-19-related lockdowns in China. And as Ram described, we believe we have secured adequate electronics supply to deliver the sales guide for the year.

通脹壓力依然存在，但我們的定價行動預計將抵消淨物質和其他通脹。該指南假設對中國 COVID-19 相關封鎖的生產沒有進一步影響。正如 Ram 所描述的，我們相信我們已經獲得了足夠的電子產品供應來提供今年的銷售指南。

Regarding the AspenTech impact on the guide, Heritage AspenTech's fiscal fourth quarter, which was included in our fiscal third quarter is its seasonally strongest quarter due to the timing of contract renewals and the revenue recognition rules that apply. Therefore, we expect AspenTech's contribution to revenue and earnings to be a bit lower in our Q4. The business continues to drive the synergy plan, and there is active joint project engagement between the 2 companies.

關於 AspenTech 對指南的影響，由於合同續籤時間和適用的收入確認規則，我們第三財季中包含的 Heritage AspenTech 第四財季是其季節性最強的季度。因此，我們預計 AspenTech 在第四季度對收入和收益的貢獻會略低。業務繼續推動協同計劃，兩家公司之間有積極的聯合項目參與。

AspenTech solutions simultaneously help customers meet sustainability and operational excellence targets, which are top investment priorities for both their customers and Emerson's traditional customers. Our combined product portfolio is well positioned to be the digital partner for process and hybrid end users.

AspenTech 解決方案同時幫助客戶實現可持續發展和卓越運營目標，這是他們的客戶和艾默生傳統客戶的首要投資重點。我們的組合產品組合非常適合成為流程和混合最終用戶的數字合作夥伴。

We've updated the net sales guidance to account for the AspenTech transaction by 1 to 2 points. and the incremental FX impact, which is now a 2- to 3-point headwind as well as the Therm-O-Disc divestiture. The InSinkErator transaction will close after the fiscal year and has no impact on the 2022 guide.

我們已將 AspenTech 交易的淨銷售額指引更新了 1 到 2 個百分點。以及增加的外匯影響，現在是 2 到 3 點的逆風以及 Therm-O-Disc 剝離。愛適易交易將在本財年結束後結束，對 2022 年指南沒有影響。

Share repurchase is expected to be $500 million. There's no change to the tax rate and dividend assumptions that we gave in the May guide. We have reduced the operating cash flow guide to $3 billion reflecting the balance sheet impact of the operational issues that we're seeing, CapEx has reduced to approximately $525 million. Free cash flow has been updated to $2.5 billion accordingly.

股票回購預計為5億美元。我們在 5 月指南中給出的稅率和股息假設沒有變化。我們已將運營現金流指南減少至 30 億美元，以反映我們所看到的運營問題對資產負債表的影響，資本支出已減少至約 5.25 億美元。自由現金流已相應更新至 25 億美元。

After removing the impact of the 3 significant non-operating items, the former is divestiture gain with Russia exiting in the third quarter and the significant Vertiv gain that we had in the first quarter, our free cash flow conversion for the year will be nearly 100%. We still expect total segment operating leverage to be in the 30% range, as we have said all year, and as we have said in previous calls. GAAP EPS is expected to be between $5.25 and $5.35 and adjusted EPS is now expected to be $5.05 to $5.15.

除去 3 項重大非經營性項目的影響後，前者是俄羅斯在第三季度退出的資產剝離收益和我們在第一季度獲得的顯著 Vertiv 收益，我們今年的自由現金流轉換將接近 100 %。正如我們全年所說的那樣，正如我們在之前的電話會議中所說的那樣，我們仍然預計總部門的經營槓桿率將在 30% 的範圍內。 GAAP 每股收益預計在 5.25 美元至 5.35 美元之間，調整後每股收益現在預計為 5.05 美元至 5.15 美元。

Please turn to Slide 15 for the EPS walk. Starting on the upper left, the May guide for GAAP EPS was $4.77 to $4.92, due to the revised sales look for Automation Solutions and the TOD divestiture were lowering the top end of the guide by $0.05. The $428 million after-tax gain on the TOD divestiture and the Russia charge are now incorporated into the guide.

請轉到幻燈片 15 進行 EPS 步行。從左上角開始，5 月份 GAAP 每股收益指南為 4.77 美元至 4.92 美元，原因是自動化解決方案的修訂銷售展望和 TOD 剝離將指南的上限降低了 0.05 美元。 TOD 剝離的 4.28 億美元稅後收益和俄羅斯收費現已納入指南。

The revised EPS guide on a comparable basis to May is $5.20 to $5.30. AspenTech adds $0.13 operationally, partially offset by $0.08 of net intangibles amortization that results from the purchase accounting on the transaction. So the resulting revised GAAP guide for EPS is $5.25 to $5.35. The right side of the chart walks the May adjusted EPS guide to the current guide. The guide was $4.95 to $5.10. We have the same $0.05 operational-related reduction AspenTech operations at $0.13, in this case, offset by $0.03 of interest expense on debt that is attributable to the transaction. So the new guide is $5.05 to $5.15.

與 5 月可比的經修訂每股收益指南為 5.20 美元至 5.30 美元。 AspenTech 在運營上增加了 0.13 美元，部分被交易購買會計產生的 0.08 美元淨無形資產攤銷所抵消。因此，修訂後的 GAAP 每股收益指南為 5.25 美元至 5.35 美元。圖表右側將 5 月調整後的 EPS 指南帶到當前指南。指南是 4.95 美元到 5.10 美元。在這種情況下，我們在 0.13 美元的情況下，與運營相關的 AspenTech 運營減少了 0.05 美元，這被交易產生的債務利息支出 0.03 美元所抵消。所以新指南是 5.05 美元到 5.15 美元。

For your reference, I won't go through it, but on the next slide, there is a bridge from GAAP to adjusted EPS for the fiscal year. The customary adjustment items are there along with the 3 unique items that I've discussed. So before turning to the Q&A, again, I would encourage you to review the slides in the appendix that we've included that explain some of the accounting details of the AspenTech transaction.

供您參考，我不會詳細介紹，但在下一張幻燈片中，有一座從 GAAP 到本財年調整後每股收益的橋樑。常規調整項目與我討論過的 3 個獨特項目一起存在。因此，在轉向問答之前，我再次鼓勵您查看附錄中的幻燈片，這些幻燈片解釋了 AspenTech 交易的一些會計細節。

With that, thank you for your attention, and we will open it up for Q&A.

至此，感謝您的關注，我們將開放問答。

(Operator Instructions) The first question comes from Andrew Obin with Bank of America.

（操作員說明）第一個問題來自美國銀行的 Andrew Obin。

Yes. Good morning Lal, Ram, Frank, Colleen. Just I guess my first question is going to be about Aspen. One of the things that Aspen has is this incredible Rolodex of clients. Can you just talk about if you have had any interaction with some of their customers on the hardware and systems side. And if you could talk about any sort of early success in terms of engaging some of Aspen's customers on the Emerson side?

是的。早上好拉爾，拉姆，弗蘭克，科琳。只是我想我的第一個問題是關於阿斯彭的。 Aspen 擁有的一件事就是這個令人難以置信的客戶關係網。您能否談談您是否在硬件和系統方面與他們的一些客戶進行過任何互動。如果您能談談在吸引艾默生方面的一些 Aspen 客戶方面取得的任何形式的早期成功？

Yes. Andrew, thank you. This is Lal. Sure. Look, we have a very active project funnel to begin with, and we worked very closely in conjunction with on world area selling organization and the AspenTech channel. It's sized at $160 million today, and it's balanced in 3 ways: by world area, by industry and by the technology. We've won to date, slightly over $6 million of synergy projects that AspenTech in to traditional Emerson customers, and Emerson into traditional AspenTech customers. So it's growing. And there's line of sight for another, I would suggest $10 million or so this fiscal year, depending on how things move over the next quarter.

是的。安德魯，謝謝。這是拉爾。當然。看，我們有一個非常活躍的項目漏斗開始，我們與世界區域銷售組織和 AspenTech 渠道密切合作。今天它的規模為 1.6 億美元，並以 3 種方式平衡：按世界區域、行業和技術。迄今為止，我們已經贏得了略高於 600 萬美元的協同項目，這些項目是 AspenTech 向艾默生的傳統客戶提供的，艾默生向 AspenTech 的傳統客戶提供的。所以它在增長。還有另一個可能，我建議本財年 1000 萬美元左右，這取決於下一季度的情況。

We have been awarded but not booked a very large project as well that's sized at $40 million with a full automation suite and AspenTech in addition. So there's a lot of commercial activity. We have individuals at both AspenTech and Emerson that are responsible for delivering the synergy value and a lot of engagement.

我們已經中標但沒有預訂一個非常大的項目，該項目的規模為 4000 萬美元，另外還有一套完整的自動化套件和 AspenTech。所以有很多商業活動。我們在 AspenTech 和 Emerson 都有負責提供協同價值和大量參與的人員。

Just 1 last anecdote, Andrew, last week, I met with the CEO of Ascend Chemical, who is not just a very strong DeltaV customer but a very loyal AspenTech customer and again, spent time with Phil McDivitt simply to lay out the opportunities that we have as an organization as they digitize their plants and move to a top quartile performance. So a lot of great activity working at many different levels across the organization. and very excited about the synergies.

最後一則軼事，Andrew，上週我會見了 Ascend Chemical 的首席執行官，他不僅是 DeltaV 的強大客戶，而且是 AspenTech 的忠實客戶，並且再次與 Phil McDivitt 共度時光，只是為了展示我們的機會作為一個組織，他們將工廠數字化並進入前四分之一的表現。因此，許多偉大的活動在整個組織的許多不同層面開展。並對協同效應感到非常興奮。

And just a follow-up question. I think before you sort of talked about potential visibility on capacity coming, I think, particularly in North America, but maybe some worldwide as well. I'm talking specifically about semiconductors because we know that sort of talking to chip brokers, industrial chips are still in very, very short (inaudible) how has this visibility evolved over the past quarter? Has this moved out to the right? Are there delays in terms of this capacity coming on? Or do you still feel confident that this capacity started to come online late this calendar year, early next year?

只是一個後續問題。我認為，在您談到產能即將到來的潛在可見性之前，我認為，尤其是在北美，但也許在全球範圍內也是如此。我專門談論半導體，因為我們知道與芯片經紀人的那種談話，工業芯片仍然非常非常短（聽不清），這種可見性在過去一個季度是如何演變的？這是移到右邊了嗎？這種能力的出現是否有延遲？或者您是否仍然有信心在本日曆年末，明年初開始上線此容量？

Yes, Andrew, Ram here. In terms of capacity coming online, we've really worked with our top 6 suppliers, and we have a very good understanding of how this capacity will come online late '23 and into '24. TI as an example, 2 particular facilities, 1 in Lehi, Utah and the other in Richardson, Texas, where we buy a lot of our components from that capacity expansion is expected to come online somewhere in the next 6 to 12 months. At this point, on track.

是的，安德魯，拉姆在這裡。就上線容量而言，我們確實與前 6 家供應商合作，我們非常了解這種容量將如何在 23 年末和 24 年上線。以 TI 為例，2 個特定設施，1 個位於猶他州李海，另一個位於德克薩斯州理查森，我們從那裡購買大量組件，產能擴張預計將在未來 6 到 12 個月內上線。至此，步入正軌。

But frankly, the challenge is that most of our suppliers are seeing is equipment that they will need to bring this capacity online is getting delayed. But at this point, at least as it relates to capacity specific to Emerson, I think we feel pretty good that this capacity will come online late '23 and into '24, which was the plan. .

但坦率地說，挑戰在於我們的大多數供應商看到的是，他們需要將這種容量在線化的設備正在延遲。但在這一點上，至少與艾默生特定的容量有關，我認為我們感覺很好，這種容量將在 23 年末和 24 年上線，這是計劃。 .

The next question comes from John Walsh with Crédit Suisse.

下一個問題來自瑞士信貸的 John Walsh。

Just wanted to follow up on kind of how we should think about the incremental leverage here in the fourth quarter. I mean, I know you kind of talked about that 30% target. But I guess, the first half of the year, Auto Sol's are running much higher. You obviously had the China disruptions in this quarter. Those reverse kind of any more granularity you can give us there on how you expect that business to leverage in the fourth fiscal quarter? .

只是想跟進我們應該如何考慮第四季度的增量槓桿。我的意思是，我知道你談到了 30% 的目標。但我想，今年上半年，Auto Sol 的運行速度要高得多。你顯然在本季度受到了中國的干擾。您可以在此處向我們提供有關您期望該業務在第四財季如何利用的那些相反的粒度嗎？ .

Look, I think, John, good question. Embedded in our guide is an assumption for -- if you just back into it about 32% operating leverage in Q4 for Emerson as a whole. That's of approximately 27% in Q3, up to 32%, I believe, in Q4, a little higher perhaps. So we feel really good about how the businesses are executing and the conversion. Obviously, we're working off a very attractive cost structure in automation, which should benefit us as we go through the quarter. Go ahead, Frank. .

聽著，我想，約翰，好問題。我們的指南中嵌入了一個假設——如果你只是回到它，艾默生在第四季度的整體運營槓桿率約為 32%。這在第三季度約為 27%，我相信在第四季度可能會更高一些，達到 32%。因此，我們對業務的執行方式和轉換感覺非常好。顯然，我們正在製定一個非常有吸引力的自動化成本結構，這將使我們在本季度受益。來吧，弗蘭克。 .

John, yes, just to add just a little bit more to that. The Automation Solutions leverage in the first half, as you said, was very strong. We said it would normalize in the second half of the year, and it will, but it will be very strong for the full year off kind of a normalized level in the fourth quarter.

約翰，是的，只是為了增加一點。正如您所說，上半年自動化解決方案的槓桿作用非常強大。我們說它會在下半年恢復正常，它會，但全年將非常強勁，在第四季度達到正常水平。

And then in Commercial Residential Solution, the leverage is accelerating as the price actions kick in, which is what we said. Second half would be stronger sequentially, both from a margin and a leverage standpoint, and that's exactly what we're seeing.

然後在商業住宅解決方案中，隨著價格行動的開始，槓桿作用正在加速，這就是我們所說的。從利潤率和槓桿的角度來看，下半年會依次走強，而這正是我們所看到的。

And just to stand corrected, the 32% leverage would be the full year calculation, 35% approximately in Q4. Sorry, John.

更正一下，32% 的槓桿率將是全年計算，大約在第四季度為 35%。對不起，約翰。

Great. No, that's super helpful. And then obviously, congrats on announcing the transaction around InSinkErator. Just curious if you can give us any more granularity on the timing if it might be able to get done by this calendar year just based on some things whirlpool said? And then just any more color on when that business will either go disc ops or if it will just get taken out of the business once it's sold?

偉大的。不，這非常有幫助。然後很明顯，恭喜您宣布圍繞 InSinkErator 進行交易。只是好奇，如果僅僅基於惠而浦所說的一些事情，如果它能夠在這個日曆年完成，你能否給我們更多的時間安排？然後，該業務何時會轉為唱片運營，或者一旦出售，它是否會被淘汰？

Yes. John, this is Frank. In terms of the timing, we and Whirlpool, both hope it will close as soon as it possibly can, but it's subject to the normal regulatory approvals. So I would expect it will be some time early in 2023, but we just don't know at this point. In terms of the disc ops, we're looking at that, we may not, at that point, clear the bar for disc ops. Although it's a very significant business to us, may not be big enough to qualify for disc ops treatment. So at this point, I would expect not, but we're going to revisit that. .

是的。約翰，這是弗蘭克。就時間而言，我們和惠而浦都希望它盡快關閉，但這需要獲得正常的監管批准。所以我預計會在 2023 年初的某個時間，但我們現在還不知道。就光盤操作而言，我們正在考慮，在這一點上，我們可能不會清除光盤操作的門檻。儘管這對我們來說是一項非常重要的業務，但可能還不足以有資格獲得光盤操作治療。所以在這一點上，我預計不會，但我們將重新審視這一點。 .

Our next question comes from Andy Kaplowitz with Citigroup.

我們的下一個問題來自花旗集團的 Andy Kaplowitz。

Well, so several of your peers saw a relatively big step back in growth in China towards the end of their quarter. Did you see anything like that? And could you update us on what you're seeing on the ground now in China? How much electronic related or lockdown-related headwind, if any, are you baking into Q4? And then just thinking with the regional focus, how are you thinking about the resiliency of your European business?

嗯，所以你的幾個同行在他們的季度末看到中國的增長出現了相對較大的退步。你有沒有看到類似的東西？您能否向我們介紹一下您現在在中國看到的情況？您在第四季度遇到了多少與電子相關或與鎖定相關的逆風（如果有的話）？然後只考慮區域焦點，您如何考慮歐洲業務的彈性？

Sure. Good question. Yes, obviously, the quarter was challenging in China for us. The lockdown had a significant impact in both demand and execution. And that was reflected in the sales results that we shared with you. Having said that, we rebounded very aggressively in the month of June in terms of economic activity, and that has continued through early part of this quarter as well.

當然。好問題。是的，很明顯，這個季度在中國對我們來說是一個挑戰。封鎖對需求和執行都產生了重大影響。這反映在我們與您分享的銷售結果中。話雖如此，就經濟活動而言，我們在 6 月份非常積極地反彈，並且這種情況一直持續到本季度初。

So I am relatively optimistic about particularly the Automation segment. which had been on a very significant run in China that, that continues as we go through Q4. There is a very attractive funnel of projects in China, driven by availability of, for lack of a better term, cheap Russian oil and gas coming into the country and investments into sustainability and renewables that are also being driven, including, I think, John, the largest Electrolyze The Project in the world is actually in China.

所以我特別看好自動化領域。這在中國進行了非常重要的運行，隨著我們進入第四季度，這種情況仍在繼續。在中國有一個非常有吸引力的項目漏斗，由於缺乏更好的條件，廉價的俄羅斯石油和天然氣進入該國，以及對可持續發展和可再生能源的投資也在推動，包括，我認為，約翰，世界上最大的電解項目其實在中國。

In terms of Europe, look, our Western European performance was actually quite positive through the quarter. We obviously had -- it was offset by Russia and parts of former Soviet Union that were impacted, obviously, during the war. But the Western European climate continues to be relatively resilient with growth in the quarter and expect the growth as we go into Q4.

在歐洲方面，看，我們在整個季度的西歐表現實際上相當積極。我們顯然有 - 它被俄羅斯和前蘇聯的部分地區所抵消，這些地區顯然在戰爭期間受到了影響。但西歐的氣候在本季度的增長中繼續保持相對彈性，並預計隨著我們進入第四季度會出現增長。

And Lal, can you give us more color into how you're thinking about Commercial & Residential Solutions going forward? I know order growth actually improved a bit in June, which I assume is easier comps, but comps do continue to get easier. So could you continue to see steady or even improving order growth in the business? And then I know you've been relatively cautious on residential HVAC. And I think Frank mentioned some continued growing in that market forgive the pun, but has that market continue to be a little better than your expectations?

Lal，您能否為我們提供更多關於您對商業和住宅解決方案未來的看法？我知道 6 月份的訂單增長實際上有所改善，我認為這是更容易的補償，但補償確實繼續變得更容易。那麼，您能否繼續看到業務的穩定甚至改善訂單增長？然後我知道你對住宅暖通空調比較謹慎。而且我認為弗蘭克提到該市場的一些持續增長原諒雙關語，但該市場是否繼續比您的預期好一點？

There is no doubt that the market has been better than expectations, John. I think if you went back to when we first talked at the beginning of the year, we expected that orders to moderate significantly. In climate, that hasn't occurred to the pace that we expected. So that's a pleasant surprise. There's a lot of resiliency with upcoming changes in regulations that are driving now investments in this space as well. So I feel better than I did at the beginning of the year, and there's a proven resiliency there across all segments of the business, of course, watching the residential demand very, very carefully.

毫無疑問，市場已經好於預期，約翰。我想如果你回到年初我們第一次談話的時候，我們預計訂單會顯著放緩。在氣候方面，這並沒有達到我們預期的速度。所以這是一個驚喜。即將發生的法規變化具有很大的彈性，這些變化也推動了現在對該領域的投資。所以我感覺比年初更好，而且在所有業務領域都證明了彈性，當然，非常非常仔細地觀察住宅需求。

Our next question comes from Steve Tusa with JPMorgan.

我們的下一個問題來自摩根大通的史蒂夫·圖薩。

Can you just give us an update on where you stand on price/costs? And then how that plays through for the year, just in your updated guide?

你能告訴我們你在價格/成本方面的最新情況嗎？然後在您更新的指南中，這一年如何發揮作用？

Yes. Steve, this is Frank. So on the last call, we talked about broadening the definition of price/cost to include material and wage -- I'm sorry, in addition to net material inflation to include wage and freight. And we said that we would basically implement enough price in the third quarter to cover everything that we're seeing, and we did. We covered it and then some in the third.

是的。史蒂夫，這是弗蘭克。所以在上次電話會議上，我們談到擴大價格/成本的定義以包括材料和工資——對不起，除了淨材料通脹包括工資和運費。我們說我們將在第三季度基本上實施足夠的價格來涵蓋我們所看到的一切，我們做到了。我們覆蓋了它，然後在第三個中覆蓋了一些。

So we turned that return favorable and we expect to be more favorable in the fourth quarter as we work through this, the pricing actions are being delivered as planned, and we're seeing some moderation in the NMI, the net material inflation, as well as kind of a leveling off in the wage and freight inflation as well at somewhat elevated levels, but it's not continuing to accelerate. So the overall price, less material, wage, freight inflation in the equation is improving as we go through the year.

因此，我們將回報轉為有利，我們預計第四季度會更有利，因為我們正在努力解決這個問題，定價行動正在按計劃交付，我們看到 NMI、淨物質通脹也有所放緩工資和運費通脹趨於平穩，也處於較高水平，但不會繼續加速。因此，等式中的整體價格（減去材料、工資、運費）通脹隨著我們這一年的發展而改善。

Great. And then just 1 kind of nitpicky one on corporate was a lot lower than we were expecting. What's the guidance on corporate for the year? I guess there's some stock comp influence in there that you have. Is there any carryover into next year? Or is there something going on there with regards to the Aspen reporting? I don't think it's Aspen, maybe it's the stock comp stuff.

偉大的。然後，企業中只有一種挑剔的人比我們預期的要低得多。企業今年的指引是什麼？我想你有一些股票補償影響。明年有結轉嗎？或者關於阿斯彭的報導有什麼事情嗎？我不認為這是阿斯彭，也許是股票補償的東西。

No, it's not. I mean it's -- there were some one-timers in there last year, but I mean it's essentially the significant move to the stock comp in the quarter. We still have 2 of the 3 outstanding LTI programs that are mark-to-market. So that when the stock price went down temporarily, there was a significant mark-to-market on that. So no, there's nothing unusual going on in corporate other than the volatility that gets introduced by that mark-to-market.

不，這不對。我的意思是 - 去年有一些一次性的，但我的意思是這本質上是本季度股票組合的重大舉措。我們仍然有 3 個按市值計價的優秀 LTI 計劃中的 2 個。因此，當股價暫時下跌時，有一個顯著的市值。所以不，除了按市價計算帶來的波動性之外，公司沒有什麼不尋常的事情發生。

Our next question comes from Josh Pokrzywinski with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Josh Pokrzywinski。

Sorry about that. So maybe just to start us off, while on kind of the totality of the funnel, obviously, a lot of things have changed from especially the process world over the past, call it, 6 months, funnel takes a while to book some of that stuff out. Any kind of dimensioning that you would use on funnel size and where you're seeing the low activity build maybe over the last 3 to 6 months. Europe sort of comes to mind first and foremost. I know you talked about that, but maybe more broadly as well. .

對於那個很抱歉。所以也許只是為了讓我們開始，雖然關於漏斗的整體，很明顯，很多事情已經發生了變化，特別是過去的流程世界，稱之為，6個月，漏斗需要一段時間來預訂其中的一些東西出來。在過去 3 到 6 個月內，您可能會在漏斗尺寸上使用的任何類型的尺寸標註以及您看到低活動構建的位置。首先想到的是歐洲。我知道你談到了這一點，但也許更廣泛。 .

Yes. No, I'll be happy to. So the total project funnel is sized at $6.8 billion. That consists of about 440 projects between now and 2020 at the end of 2024. So that's kind of the visibility that we have today. As -- you're absolutely right, there was a lot of movement within the funnel as we went through the quarter, including projects that were booked, projects that were added. And then almost $0.5 billion of projects value that we'll remove from the funnel, about 13 projects.

是的。不，我很樂意。因此，整個項目漏斗的規模為 68 億美元。這包括從現在到 2024 年底的 2020 年之間的大約 440 個項目。這就是我們今天所擁有的可見性。正如 - 你是絕對正確的，當我們經歷這個季度時，漏斗中有很多變動，包括預訂的項目，添加的項目。然後我們將從漏斗中刪除近 5 億美元的項目價值，大約 13 個項目。

The majority of which were impacted in Russia with a Baltic Chemical complex and a Baltic LNG project that were in the funnel. So those are the big removals, but in terms of the project basically funnel size, essentially flat, but what did get relatively larger within it was the renewables value of the funnel, which grew from 1 to approximately 1.5 million . So it's very encouraging to see and our activity continues to increase significantly in that segment.

其中大部分在俄羅斯受到波羅的海化工綜合體和波羅的海液化天然氣項目的影響。所以這些是大移除，但就項目而言，基本上是漏斗尺寸，基本上是平的，但其中相對較大的是漏斗的可再生能源價值，從 1 增長到大約 150 萬。因此，看到我們的活動在該領域繼續顯著增加是非常令人鼓舞的。

Got it. That's helpful. And then just following up on CapEx, pretty decent sized kind of especially on a percentage basis, I understand free cash flow is sort of impacted for yourself and for all your peers early around the working capital situation.

知道了。這很有幫助。然後只是跟進資本支出，相當不錯的規模，尤其是在百分比的基礎上，我知道自由現金流在營運資本狀況的早期對你自己和你所有的同行都有影響。

Just trying to gauge how much of the CapEx cut is just sort of protecting the cash plan versus more of a slowdown. A lot of the talk around growth has been pretty constructive. So just trying to marry those 2 phenomenon.

只是試圖衡量削減多少資本支出只是為了保護現金計劃而不是更多的放緩。很多關於增長的討論都非常有建設性。所以只是想把這兩種現象結合起來。

Yes, Josh, no slowdown of any kind in key investments that we're making for both growth and to improve our cost position. There's always room in sustaining CapEx. And given the challenges on the operating cash flow line, we've squeezed down the sustained CapEx. But I can assure you, everything that needs to get done is getting done.

是的，喬希，我們為增長和改善成本狀況而進行的關鍵投資沒有任何形式的放緩。維持資本支出總是有空間的。鑑於經營現金流量線面臨的挑戰，我們已經壓縮了持續的資本支出。但我可以向你保證，所有需要完成的事情都已經完成。

Our next question comes from Scott Davis with Melius Research.

我們的下一個問題來自於 Melius Research 的 Scott Davis。

When -- can we talk a little bit about this Mitsubishi contract that you won on Slide 5. I'm just trying to get a sense of the scope of these types of things and materiality. And I guess it's -- when you say win an automation contract, you mean winning the control side, does it include things like flowmeters and stuff like that? Or perhaps you can address that.

什麼時候 - 我們可以談談您在幻燈片 5 上贏得的這份三菱合同。我只是想了解這些類型的事情的範圍和重要性。我猜是——當你說贏得自動化合同時，你的意思是贏得控制方面，它是否包括流量計之類的東西？或者也許你可以解決這個問題。

Yes. Scott, Lal here. Absolutely. It's not too similar to an automation scope that we would discuss relative to a traditional carbon-based project. So that would include control, it includes now the opportunity for AspenTech on the analytics and optimization. But of course, at the core, we have our funnel control elements, which are very relevant here and our sensor elements. So flowmeters, pressure transmitters, level. So it's the full automation scope that we bring to bear. A project like this can be as sizable as high as over $50 million, potentially as we execute it but it has that type of an opportunity.

是的。斯科特，拉爾在這裡。絕對地。它與我們將討論的相對於傳統碳基項目的自動化範圍不太相似。所以這將包括控制，它現在包括 AspenTech 在分析和優化方面的機會。但是，當然，我們的核心是漏斗控制元件，它們在這裡非常相關，還有我們的傳感器元件。所以流量計、壓力變送器、液位。所以這是我們承擔的全自動化範圍。像這樣的項目可能高達 5000 萬美元以上，可能在我們執行時，但它有這樣的機會。

Okay. That's helpful. And then just on the conversation of FX, I mean, big changes here in the last few months. And you guys are, obviously, global. But are we just still mostly talking just translation impacts here and no real competitive dynamics far as some competitors using currency as a bit of an advantage, et cetera?

好的。這很有幫助。然後就外彙的談話，我的意思是，在過去的幾個月裡，這裡發生了很大的變化。顯然，你們是全球性的。但是，我們是否仍然只是在這裡談論翻譯影響，而沒有真正的競爭動態，因為一些競爭對手使用貨幣作為優勢等等？

Yes, Scott. Yes, correct. We are really talking about the impact on sales growth and translated profit. We typically don't have a lot of competitive issues around currency, our businesses position themselves defensively around currency and then they very conservatively hedge cash flows where it makes sense to do that. So no, we're not hearing anything from the businesses about being at a competitive disadvantage relative to somebody else's cost base being in a weaker currency.

是的，斯科特。是，對的。我們真正談論的是對銷售增長和轉換利潤的影響。我們通常沒有很多圍繞貨幣的競爭問題，我們的業務圍繞貨幣進行防禦性定位，然後他們非常保守地對沖現金流，這是有意義的。所以不，我們沒有從企業那裡聽到任何關於相對於其他人的成本基礎處於弱勢貨幣的競爭劣勢。

Our next question comes from Jeff Sprague with Vertical Research.

我們的下一個問題來自 Vertical Research 的 Jeff Sprague。

Well, you've been pretty busy as illuminated in those slide items you started with to start the call. I wonder if you could just give us a little bit more of a thought process here now and where we're at in the transformation?

好吧，正如您開始通話時使用的幻燈片項目所示，您一直很忙。我想知道您是否可以在這裡給我們更多的思考過程以及我們在轉型中的位置？

And maybe specifically, just thinking about what you've called disconnected assets, not expecting to name segments or businesses by name. But how far along are we in that process of taking action on disconnected assets? And how much longer should this process take?

也許具體來說，只是想想你所謂的斷開連接的資產，而不是指望通過名稱來命名細分市場或企業。但是，我們在對斷開連接的資產採取行動的過程中走了多遠？這個過程需要多長時間？

Jeff, good to hear from you. No, I think it's a good question. We are on a journey and across all 3 of the strategic imperatives that I described. And along all 3 of them, I think we've made significant progress, and I appreciate you recognizing that. In terms of the portfolio, my commitment to our shareholders has been that by the latest on November 29 at our investor conference, we will portray the future state of the business and what we envision to be the end state of this journey. In the meantime, we will continue to look at opportunities and execute along a few dimensions, which I'm not really free to speak about at the moment.

傑夫，很高興收到你的來信。不，我認為這是個好問題。我們正在經歷我所描述的所有 3 個戰略要務。在這三個方面，我認為我們已經取得了重大進展，我感謝你認識到這一點。在投資組合方面，我對股東的承諾是，最遲在 11 月 29 日的投資者會議上，我們將描繪業務的未來狀態以及我們設想的這一旅程的最終狀態。與此同時，我們將繼續尋找機會並在幾個方面執行，我目前還不能自由談論這些。

And then just maybe on price, and I was just thinking automation, in particular, I think you said 3% price there with 12 and CRS, I back into 2, the question isn't really what here is it, if it's 2 or 3. But the question is more just about the ability to get additional price in that business. I certainly understand CRS is where you need it most and some that you've gotten it pretty actively. But is there more positive price momentum coming through the system in Automation Solutions? Maybe a comment on price and orders relative to price and revenues. Could you give us some context there?

然後可能只是價格，我只是在考慮自動化，特別是，我想你說 3% 的價格有 12 和 CRS，我回到 2，問題不在於它是什麼，如果它是 2 或3. 但問題更多是關於在該業務中獲得額外價格的能力。我當然明白 CRS 是您最需要它的地方，而且您已經非常積極地獲得了它。但是，自動化解決方案中的系統是否有更積極的價格動能？也許是對價格和訂單相對於價格和收入的評論。你能給我們一些背景嗎？

Yes. I'll give you some -- I'll ask Ram to add some color as well. I feel really, really positive about the price realization in Automation Solutions. And as you know, Jeff, this is almost a decade now within that business segment that we've had positive price. The products and solutions continue to be highly differentiated from a customer perspective. The installed base at over $120 billion is very relevant and that replacement market has significant pricing elasticity in it and drives our ability to take price forward.

是的。我會給你一些——我也會讓 Ram 添加一些顏色。我對自動化解決方案的價格實現感到非常非常積極。如你所知，傑夫，在我們已經獲得正價的業務領域內，這已經快十年了。從客戶的角度來看，產品和解決方案繼續保持高度差異化。超過 1200 億美元的安裝基礎非常重要，替代市場在其中具有顯著的定價彈性，並推動我們提高價格的能力。

Having said that, obviously, we have been in an incredible inflationary environment. We will continue to drive price where we can across the product families. But we also have to drive operational improvements so that our customers can realize value from improved activity. But I feel good about the environment we're in and ability to capture the value that's out there. Ram, color?

話雖如此，顯然，我們一直處於令人難以置信的通貨膨脹環境中。我們將繼續推動產品系列的價格。但我們還必須推動運營改進，以便我們的客戶能夠從改進的活動中實現價值。但我對我們所處的環境以及捕捉其中價值的能力感覺良好。拉姆，顏色？

Yes. And I would add that in terms of price cost, which includes the wage and freight inflation, that business has always remained green and the magnitude of price we get in that 2% to 3% range. Our list price increases obviously are a lot higher. We realize a percent of the list as we go into the market and execute. That will continue to remain positive in Q4 and certainly into 2023 and well ahead of the net material inflation as well as wage and freight.

是的。我還要補充一點，就包括工資和運費通脹在內的價格成本而言，該業務一直保持綠色，我們獲得的價格幅度在 2% 到 3% 的範圍內。我們的標價漲幅顯然要高得多。當我們進入市場並執行時，我們實現了列表的百分比。這將在第四季度繼續保持積極態勢，並且肯定會持續到 2023 年，並且遠遠超過淨物質通脹以及工資和運費。

Our next question comes from Julian Mitchell with Barclays.

我們的下一個問題來自巴克萊銀行的 Julian Mitchell。

Maybe just the first question around the free cash flow. So I think with your guidance here around sort of 80% conversion to adjusted net income this year. Maybe help us understand sort of how quickly they get back to 100% in fiscal '23. And as you work down the inventory often that can carry some margin headwind in the P&L. So just wondered kind of any thoughts around that dynamic and also what the contribution of Aspen is to the free cash flow in the current year.

也許只是關於自由現金流的第一個問題。因此，我認為在您的指導下，今年將有 80% 的轉化為調整後的淨收入。也許可以幫助我們了解他們在 23 財年恢復到 100% 的速度。當您經常減少庫存時，可能會在損益表中帶來一些利潤逆風。所以只是想知道圍繞這種動態的任何想法，以及 Aspen 對本年度自由現金流的貢獻。

Okay. Julian, this is Frank. The -- we would expect the balance sheet to normalize. I would hope in the first half of fiscal '23, I mean, we had a big sales quarter in the fourth quarter. we would expect growth when we start to talk about '23, I think we have pretty good robust growth expectations for '23. The inventory is actually in good shape. I have no concerns about what it is we have on the books. It's just simply a matter of through put given all the operational challenges. I would expect to be in better shape on the conversion aspect of it by the middle of fiscal 2023.

好的。朱利安，這是弗蘭克。 - 我們預計資產負債表將正常化。我希望在 23 財年上半年，我的意思是，我們在第四季度有一個大的銷售季度。當我們開始談論 '23 時，我們會預期增長，我認為我們對 '23 有相當強勁的增長預期。庫存實際上狀況良好。我不擔心我們在書上有什麼。考慮到所有運營挑戰，這只是一個吞吐量問題。我預計到 2023 財年中期，其轉換方面的狀況會更好。

Margin headwinds, yeah, I take your point in terms of having some absorption issues, but I mean the businesses consider those, and I believe those are manageable. So even inside the guide that we have for the balance of this year. There's some of that, but it's more -- it's well considered within the guide in terms of that. It's just something we have to manage as we go through the adjustment on the balance sheet.

利潤率逆風，是的，我認為你的觀點是有一些吸收問題，但我的意思是企業會考慮這些問題，我相信這些是可控的。因此，即使在我們今年剩餘時間的指南中。其中有一些，但更多——指南中對此進行了充分考慮。這只是我們在資產負債表上進行調整時必須管理的事情。

AspenTech for this year, the 2022 cash flow, there was basically 0 contribution to cash flow in the third quarter, and it will be minimal as well in the fourth quarter, and that is a function of some specific items having to do with the transaction.

AspenTech今年，2022年現金流，第三季度對現金流的貢獻基本為0，第四季度也將是最小的，這是與交易有關的一些特定項目的函數.

They had a final short period return as part of the transaction, and they accelerated a significant tax payment, which basically negated the free cash flow that they would have had in their fiscal fourth quarter and their fiscal first quarter is their -- appears to be their lowest quarter of the year on that score, and it also is the normal timing for their incentive comp payments, which basically absorbs much of the free cash flow. So inside of our number is minimal impact from AspenTech on free cash flow.

作為交易的一部分，他們獲得了最終的短期回報，他們加快了巨額稅收的支付，這基本上抵消了他們在第四財季本應擁有的自由現金流，而第一財季是他們的——似乎是他們在該分數上是一年中最低的一個季度，這也是他們支付激勵補償的正常時間，這基本上吸收了大部分自由現金流。因此，在我們的數據中，AspenTech 對自由現金流的影響很小。

That's very helpful. And then maybe just following up on Aspen, specifically. So it looks like, to your point, because of some of these one-timers I think Aspen itself is not really earnings accretive in the fourth quarter when we leave aside OSI and SSE earnings -- so just wondered if you could confirm that that's the case how do you think about the... yes?

這很有幫助。然後也許只是跟進阿斯彭，特別是。所以看起來，就你而言，由於其中一些一次性的，我認為當我們撇開 OSI 和 SSE 收益時，Aspen 本身在第四季度並沒有真正增加收益——所以只是想知道你是否可以確認那是案例你如何看待...是的？

No, I'm sorry, Julian, to interrupt. No, it is in fact, earnings accretive. I mean it was $0.08 accretive in the third quarter. We've billed $0.10 into the guide for the year, which obviously implies it's at least $0.02 accretive in the fourth quarter. So yes, it will be -- it will, in fact, be accretive.

不，對不起，朱利安，打擾了。不，實際上是在增加收益。我的意思是第三季度增加了 0.08 美元。我們在今年的指南中計入了 0.10 美元，這顯然意味著它在第四季度至少增加了 0.02 美元。所以是的，它會——事實上，它會增加。

I'd point you to on Slide 15. We've got AspenTech operations contributing $0.13 for the year. So -- and then we deduct the interest expense attributable to the debt, and we get to $0.10 net contribution for the year, $0.08 of which we had in the AspenTech Net Intangibles Amortization.

我會在幻燈片 15 上向您指出。我們已經讓 AspenTech 運營部門為這一年貢獻了 0.13 美元。所以 - 然後我們扣除可歸因於債務的利息費用，我們獲得了 0.10 美元的年度淨貢獻，其中 0.08 美元來自 AspenTech 淨無形資產攤銷。

That's helpful. And maybe, Frank, just on that point, when we're trying to think about the sort of noncontrolling interest, that was a big number in Q3. How do we think about that for Q4, just as that sort of jumping off point for next year?

這很有幫助。也許，弗蘭克，就在那一點上，當我們試圖考慮那種非控制性利益時，這在第三季度是一個很大的數字。我們如何看待第四季度的這一點，就像明年的那種跳躍點一樣？

Julian, we'll follow up with you.

朱利安，我們會跟進你的。

Yes, let us follow up on that one with you Julian. ok?

是的，讓我們與您一起跟進 Julian。好？

Our next question comes from Nicole DeBlase with Deutsche Bank.

我們的下一個問題來自德意志銀行的 Nicole DeBlase。

Can I just start with a couple of clarification items on the quarter and the guidance. First off, the China impact of $100 million, is that completely incremental versus what you guys had expected for 3Q? Or had you expected any impact? And then in the $0.05 of reduction in core operations plus Therm-O-Disc, for the full year, how much was Therm-O-Disc versus core operations?

我可以從關於本季度和指導的幾個澄清項目開始。首先，1 億美元對中國的影響，與你們對第三季度的預期相比，這完全是增量嗎？或者你有沒有預料到會有什麼影響？然後在核心業務和 Therm-O-Disc 減少 0.05 美元中，全年，Therm-O-Disc 與核心業務相比有多少？

So the -- yes, it was incremental. Those are sales we expected to have in the third quarter when we guided in May, that we lost as -- entirely as a function of the extended lockdown. And that $0.05 is mainly the operational issues around supply chain. Therm-O-Disc is maybe $0.01 or $0.02 event.

所以——是的，它是增量的。這些是我們在 5 月份指導時預計在第三季度的銷售額，我們失去了——完全是由於延長的封鎖。而這 0.05 美元主要是圍繞供應鏈的運營問題。 Therm-O-Disc 可能是 0.01 美元或 0.02 美元的活動。

Okay. Got it. That's clear. And then can we just talk a little bit about what you guys are seeing with respect to oil and gas customers, KOB 3 versus what was the project activity given all the movement we've seen in the oil price recently?

好的。知道了。這很清楚。然後我們能否談談你們對石油和天然氣客戶的看法，KOB 3 與我們最近看到的油價走勢的項目活動是什麼？

Yes. Sure, Nicole. So KOB 3, the quarter set at 62% of automation. So it's been relatively been consistent in that 60% range. We expect it to be right in that 60% range as we go through the year. The project activity is very robust and continues to be. We have active engagements across EPCs, particularly Bechtel, who's taken a significant number of the new LNG jobs in Texas and Louisiana, and those are in design phase and engineering phase right now. But again, it is combined with a significant investment in the sustainability efforts as well along emissions, carbon capture and energy efficiency. And then the last one is the North America shale environment is improving, and that's driven by gas demand. It's just very positive. And that's both for U.S. capacity in chemicals and for Mexico as well.

是的。當然，妮可。因此，KOB 3，該季度設定為 62% 的自動化。所以它在 60% 的範圍內相對一致。我們預計這一年將在 60% 的範圍內正確。項目活動非常強勁，並且將繼續如此。我們積極參與 EPC，尤其是 Bechtel，他們在德克薩斯州和路易斯安那州承擔了大量新的 LNG 工作，這些工作目前正處於設計階段和工程階段。但同樣，它與對可持續發展工作以及排放、碳捕獲和能源效率的重大投資相結合。最後一個是北美頁岩環境正在改善，這是由天然氣需求推動的。這是非常積極的。這既適用於美國的化學品產能，也適用於墨西哥。

This concludes our question-and-answer session and conference. Thank you for attending today's presentation. You may now disconnect.

我們的問答環節和會議到此結束。感謝您參加今天的演講。您現在可以斷開連接。