艾默生電氣 (EMR) 2023 Q1 法說會逐字稿

Good morning, and welcome to the Emerson First Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded.

早上好，歡迎來到艾默生 2023 年第一季度收益電話會議。 （操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to call Colleen Mettler, Vice President Investor Relations. Please go ahead.

我現在想把會議轉給投資者關係副總裁 Colleen Mettler。請繼續。

Thank you. Good morning. Thanks for joining us for Emerson's First Quarter Fiscal 2023 Earnings Call. Today, I am joined by President and Chief Executive Officer, Lal Karsanbhai; Chief Financial Officer, Frank Dellaquila; and Chief Operating Officer, Ram Krishnan.

謝謝。早上好。感謝您參加艾默生 2023 財年第一季度財報電話會議。今天，總裁兼首席執行官 Lal Karsanbhai 和我一起出席了會議；首席財務官 Frank Dellaquila；和首席運營官 Ram Krishnan。

As always, I encourage everyone to follow along with the slide presentation, which is available on our website.

一如既往，我鼓勵大家跟隨我們網站上的幻燈片演示。

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.

請加入幻燈片 2。此演示文稿可能包含前瞻性陳述，其中包含一定程度的業務風險和不確定性。請花時間閱讀安全港聲明並註意非 GAAP 措施。

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

我現在將電話轉交給艾默生總裁兼首席執行官 Lal Karsanbhai，請他致開幕詞。

Thank you, Colleen. Good morning, and thank you for joining us. I'd like to begin by thanking the global Emerson family for delivering yet another strong operational quarter. I'd also like to extend my appreciation to our Board of Directors and the shareholders of Emerson for your continued confidence in this management team.

謝謝你，科琳。早上好，感謝您加入我們。首先，我要感謝全球 Emerson 家族帶來了又一個強勁的運營季度。我還要感謝我們的董事會和 Emerson 的股東，感謝你們對這個管理團隊的持續信任。

We remain confident about the strength of our markets from both a geographic and an industry perspective. This is exemplified by our project funnel that continues to grow, exceeding $7 billion at the end of the quarter.

從地理和行業的角度來看，我們對我們市場的實力仍然充滿信心。我們的項目漏斗繼續增長，在本季度末超過 70 億美元，這就是例證。

Before I turn the call over and discuss the quarter's performance, in review of our strong outlook for the second quarter and the year, I'd like to say a few words about our headquarters announcement this morning. We conducted a comprehensive 3-month review of location options. St. Louis was selected, following this rigorous process, and we look forward now to finding an appropriate location in the region.

在我結束電話會議並討論本季度的業績之前，回顧我們對第二季度和今年的強勁前景，我想就今天早上的總部公告說幾句話。我們對地點選項進行了為期 3 個月的全面審查。聖路易斯是在這個嚴格的過程之後被選中的，我們現在期待著在該地區找到一個合適的位置。

Please turn to Slide 3. Operationally, the first quarter was very strong for Emerson. End market demand remains strong as first quarter order trajectory played out largely as planned. 5% underlying orders was as expected as broad automation strength was weighed down slightly by a double-digit decline in safety productivity orders against tough comps. Sequential underlying orders were also up 6% versus the September end quarter.

請轉到幻燈片 3。在運營方面，Emerson 的第一季度非常強勁。終端市場需求依然強勁，因為第一季度的訂單軌跡基本按計劃進行。 5% 的基礎訂單符合預期，因為安全生產率訂單相對於艱難的 comps 兩位數的下降略微拖累了廣泛的自動化實力。與 9 月底季度相比，連續基礎訂單也增長了 6%。

Sales met our expectations at 6% underlying growth, slightly impacted by shutdowns in China. Our business performed very well operationally, displaying the strength of our Emerson management system. Operating leverage, excluding AspenTech, was 40%, ahead of our mid- to high 30s expectation. Adjusted EPS was $0.78 for the quarter and was impacted by two main below-the-line items.

銷售額基本增長 6%，符合我們的預期，受到中國停工的輕微影響。我們的業務在運營方面表現出色，展示了艾默生管理系統的實力。運營槓桿（不包括 AspenTech）為 40%，高於我們 30 年代中高水平的預期。本季度調整後每股收益為 0.78 美元，受到兩個主要線下項目的影響。

Stock compensation was a $0.09 headwind versus 2022, driven by a 31% stock price increase throughout the quarter and its subsequent impact on the remaining mark-to-market plan. While we expect a slight headwind from the addition of AspenTech's stock comp rolling into our financials, the overall stock compensation headwind was 8% worse than anticipated. Frank will provide more color on this in his section.

與 2022 年相比，股票薪酬減少了 0.09 美元，這是由於整個季度股價上漲了 31% 及其對剩餘的按市值計價計劃的後續影響。雖然我們預計將 AspenTech 的股票補償納入我們的財務狀況會帶來輕微的阻力，但整體股票補償阻力比預期差 8%。弗蘭克將在他的部分中提供更多顏色。

Similarly, FX was worse than originally expected. However, despite these headwinds, operations performed above guidance as our business continued to execute. Lastly, we completed our committed $2 billion of share repurchase in the first quarter.

同樣，外匯也比最初預期的要差。然而，儘管存在這些不利因素，但隨著我們的業務繼續執行，運營表現高於指導。最後，我們在第一季度完成了承諾的 20 億美元股票回購。

Turning to Slide 4. I'd like to walk through some exciting successes and the strong momentum we see in the value creation priorities we laid out on November 29. First, in late January, we visited the Middle East and had the opportunity to break ground on our new state-of-the-art innovation and manufacturing hub in Saudi Arabia. This investment is designed to not only spur innovation for the region, focusing on the transition to clean energy segments like hydrogen and clean fuels, but also demonstrates our commitment to our regionalization strategy and best cost manufacturing, pillars of our operational excellence.

轉到幻燈片 4。我想介紹一些激動人心的成功以及我們在 11 月 29 日制定的價值創造優先事項中看到的強勁勢頭。首先，在 1 月下旬，我們訪問了中東，並有機會打破立足於我們在沙特阿拉伯的最先進的創新和製造中心。這項投資不僅旨在刺激該地區的創新，專注於向氫和清潔燃料等清潔能源領域的過渡，而且還表明我們對區域化戰略和最佳成本製造的承諾，這是我們卓越運營的支柱。

As an example of the projects our investment will supply, Emerson was chosen to provide automation for the world's largest green hydrogen facility by NEOM. The plant will provide 600 tonnes a day of green hydrogen using Emerson Automation technology throughout production processes and renewable power generation. Emerson's local support and installed base in the Middle East were key differentiators.

作為我們投資將提供的項目的一個例子，艾默生被 NEOM 選擇為世界上最大的綠色氫設施提供自動化。該工廠將在整個生產過程和可再生能源發電中使用艾默生自動化技術，每天提供 600 噸綠色氫氣。艾默生在中東的本地支持和安裝基礎是關鍵的差異化因素。

Secondly, Emerson and AspenTech continue to succeed with our joint customer solutions. In the first quarter, we were jointly selected to automate the Middle East's largest ethane facility by Qatar Energy and Chevron Phillips, Ras Laffan. Emerson will serve as the main automation contractor for the $6 billion facility, providing our leading DeltaV control system with AspenTech engineering and simulation products. The project is a scale example of our commercial agreement with AspenTech and how it successfully provides an expanded differentiated product offering to customers.

其次，艾默生和 AspenTech 通過我們的聯合客戶解決方案繼續取得成功。第一季度，我們被卡塔爾能源公司和拉斯拉凡的雪佛龍菲利普斯聯合選中，為中東最大的乙烷設施實現自動化。艾默生將作為這個價值 60 億美元設施的主要自動化承包商，為我們領先的 DeltaV 控制系統提供 AspenTech 工程和仿真產品。該項目是我們與 AspenTech 的商業協議的一個規模示例，以及它如何成功地為客戶提供擴展的差異化產品。

Lastly, Emerson continues to diversify through life sciences and metals and mining markets. In the first quarter, Emerson was awarded the automation contract for Fujifilm Diosynth Biotechnologies in Europe. The expansion project will include multiple bioreactors and processing streams, one of the largest CDMOs in Europe.

最後，艾默生繼續通過生命科學、金屬和採礦市場實現多元化。第一季度，艾默生獲得了歐洲 Fujifilm Diosynth Biotechnologies 的自動化合同。擴建項目將包括多個生物反應器和加工流，這是歐洲最大的 CDMO 之一。

These three projects are a clear demonstration of Emerson's commitment to the growth platforms we discussed at our investor conference, and our continued success differentiating as an automation leader in these markets.

這三個項目清楚地證明了艾默生對我們在投資者會議上討論的增長平台的承諾，以及我們在這些市場中作為自動化領導者的持續成功。

Before I turn the call over to Frank, I wanted to briefly discuss our proposal to acquire National Instruments for $53 per share in cash. As you know, we made our offer public on January 17, and our correspondence with NI since 2022, May is available on maximizing value at ni.com.

在我將電話轉給 Frank 之前，我想簡要討論一下我們以每股 53 美元現金收購 National Instruments 的提議。如您所知，我們於 1 月 17 日公開了報價，自 2022 年 5 月起我們與 NI 的通信可在 ni.com 上的 maximizing value 上獲得。

Emerson is committed to an acquisition of NI and is participating in the strategic review process. We believe our premium all-cash proposal with no financing conditions or anticipated regulatory concerns is compelling and in the best interest of Emerson and NI shareholders. We look forward to continued engagement with NI and its advisers and moving swiftly towards an agreed transaction.

艾默生承諾收購 NI 並參與戰略審查過程。我們相信，我們沒有融資條件或預期監管問題的優質全現金提議很有說服力，並且符合艾默生和 NI 股東的最佳利益。我們期待與 NI 及其顧問繼續合作，並迅速達成一項商定的交易。

That said, the focus of this call is our performance for the quarter, and we're not going to be commenting further on our proposal for NI at this time. Be assured that we'll continue to execute financial diligence as we review these opportunities.

也就是說，本次電話會議的重點是我們本季度的業績，目前我們不會進一步評論我們對 NI 的提議。請放心，我們在審查這些機會時會繼續執行財務盡職調查。

With that, I will now turn the call over to Frank.

有了這個，我現在將把電話轉給弗蘭克。

Thank you, Lal, and good morning, everyone. Please turn to Slide 5. As Lal mentioned, we had a very strong operational start to 2023. Underlying sales were within our expectations for the quarter at 6%, driven by 10% growth in software and control and 5% in Intelligent Devices.

謝謝你，拉爾，大家早上好。請轉到幻燈片 5。正如 Lal 所提到的，到 2023 年我們的運營開局非常強勁。基本銷售額在我們對本季度 6% 的預期之內，這主要受軟件和控制增長 10% 以及智能設備增長 5% 的推動。

Net sales were up 7% with a 4-point drag from currency and a 5-point contribution from AspenTech. World area growth was led by the Americas, which was up 13%, driven by strong process sales, particularly in energy and chemical. The continued energy crisis in Europe affected demand as underlying sales were below prior year by 2%. However, sales were up 7% after adjusting for the impact of Russia.

淨銷售額增長 7%，受匯率拖累 4 個百分點，AspenTech 貢獻 5 個百分點。世界地區增長由美洲引領，增長了 13%，這得益於強勁的加工銷售，尤其是在能源和化工領域。歐洲持續的能源危機影響了需求，因為基礎銷售額比上一年低 2%。然而，在調整了俄羅斯的影響後，銷售額增長了 7%。

Sales in Asia, Middle East and Africa were flat versus prior year as strength in the Middle East, driven by chemical and energy investments, was offset by dam sales in China, mainly due to challenging year-on-year comparisons and sporadic COVID-related shutdowns. By industry, we continue to see strength in later cycle markets like energy and chemical.

亞洲、中東和非洲的銷售額與上年持平，因為中東在化學和能源投資的推動下表現強勁，但被中國的大壩銷售額所抵消，這主要是由於同比比較具有挑戰性以及與 COVID 相關的零星事件停工。按行業劃分，我們繼續看到能源和化工等後期週期市場的實力。

Chemical investments and plant modernization and sustainability remains steady in North America and Asia, but we are keeping a close eye on this market as we assess our outlook for the balance of 2023.

北美和亞洲的化學品投資、工廠現代化和可持續性發展保持穩定，但我們在評估 2023 年餘下的展望時密切關注這個市場。

Overall, first quarter process industry sales were up high single digits. Similarly, hybrid sales were up high single digits, led by continued investments in life sciences reshoring and metals and mining. Discrete sales were up mid-single digits as this earlier cycle business starts to lap more difficult comps. The growth in discrete was offset by weakness in our commercial business in safety and productivity, which was down 10% for the quarter, but with early signs that we are bottoming out.

總體而言，第一季度流程工業銷售額增長了高個位數。同樣，在對生命科學回流以及金屬和採礦的持續投資的帶動下，混合動力銷售額實現了高個位數增長。隨著這個早期週期的業務開始覆蓋更困難的組合，離散銷售額增長了中等個位數。離散業務的增長被我們商業業務在安全和生產力方面的疲軟所抵消，該業務在本季度下降了 10%，但有跡象表明我們正在觸底反彈。

Overall, we feel confident about the health of our end markets and our conversations with customers indicate continued growth in investments during 2023.

總體而言，我們對終端市場的健康狀況充滿信心，我們與客戶的對話表明 2023 年投資將持續增長。

Price during the quarter contributed 4 points as our pricing actions from 2022 and additional actions taken at the beginning of '23 are driving strong price realization. Backlog grew approximately $700 million during the quarter to $6.6 billion, giving us ample opportunity to execute on the rest of the fiscal year plan.

本季度的價格貢獻了 4 個百分點，因為我們從 2022 年開始的定價行動和 23 年初採取的其他行動正在推動強勁的價格實現。本季度積壓訂單增加了約 7 億美元，達到 66 億美元，這使我們有充足的機會執行本財年剩餘的計劃。

Adjusted segment EBITDA margin improved by 130 basis points and leverage was 40%, excluding AspenTech. North America mix contributed to the margin expansion, and price was accretive to margin in the quarter. Software and control margins were up 200 basis points, led by AspenTech. Intelligent Devices performance was strong with 110 basis points of adjusted EBITDA expansion.

調整後的部門 EBITDA 利潤率提高了 130 個基點，槓桿率為 40%，不包括 AspenTech。北美組合對利潤率擴張做出了貢獻，而價格對本季度的利潤率起到了推動作用。在 AspenTech 的帶動下，軟件和控制利潤率上升了 200 個基點。智能設備業務表現強勁，調整後 EBITDA 擴張 110 個基點。

Adjusted EPS was $0.78, and I'll discuss the details when we move to the next chart.

調整後每股收益為 0.78 美元，我將在轉到下一張圖表時討論詳細信息。

Lastly, on this chart, free cash flow of $243 million was down 20% year-over-year, mainly due to trade working capital, including the impact of supply chain performance, which is improving, but is still challenged. We are focused on improving trade working capital as we progress through the year, and we reiterate our expectation of 100% free cash flow conversion for the full year.

最後，在這張圖表上，自由現金流為 2.43 億美元，同比下降 20%，這主要是由於貿易營運資金，包括供應鏈績效的影響，供應鏈績效正在改善，但仍面臨挑戰。隨著我們今年的進展，我們專注於改善貿易營運資金，我們重申我們對全年 100% 自由現金流轉換的預期。

Turning to Slide 6. This is our adjusted EPS bridge versus the prior year. First, I wanted to say that we had very strong operational results, again, reflecting low 40s leverage on incremental sales, which delivered $0.15 to adjusted EPS in the quarter. There was an unfavorable impact due to stock compensation, as Lal said, of $0.09 and an additional $0.09 due to currency. The stock comp impact was primarily due to our legacy long-term incentive plans, which required mark-to-market treatment on recorded expense of the 31% increase in our stock price during the quarter. The last of these plans will run off in 2023, and the new plans do not require mark-to-market accounting. So going forward, the variability from stock comp will be dramatically reduced in 2024 and beyond from what it has been historically.

轉向幻燈片 6。這是我們調整後的 EPS 橋樑與前一年的比較。首先，我想說的是，我們的運營業績非常強勁，再次反映出 40 多歲的增量銷售槓桿率較低，本季度調整後的每股收益為 0.15 美元。正如 Lal 所說，股票補償產生了 0.09 美元的不利影響，另外還有 0.09 美元的匯率影響。股票補償的影響主要是由於我們遺留的長期激勵計劃，該計劃要求對本季度股價上漲 31% 的記錄費用進行按市值計算。這些計劃中的最後一個計劃將於 2023 年結束，新計劃不需要按市值計價會計。因此，展望未來，股票價格的可變性將在 2024 年及以後顯著低於歷史水平。

Currency in the quarter was primarily driven by the accounting treatment of our long-term contracts in addition to customary translation and transaction impacts. Other nonoperating items and share repurchase contributed $0.02 to the quarter.

本季度的貨幣主要受我們長期合同的會計處理以及慣常換算和交易影響的推動。其他非經營性項目和股票回購為本季度貢獻了 0.02 美元。

Please turn to Slide 7. Turning to our 2023 outlook, we continue to see strength across our end markets. As we communicated in October, process, hybrid and discrete markets are all expected to grow mid- to high single digits in 2023. The long-term secular trends we discussed in November continue to be relevant for our business and are driving growth and successes in 2023.

請轉到幻燈片 7。談到我們的 2023 年展望，我們繼續看到我們終端市場的實力。正如我們在 10 月份所傳達的那樣，過程、混合和離散市場都有望在 2023 年實現中高個位數增長。我們在 11 月份討論的長期長期趨勢繼續與我們的業務相關，並正在推動增長和成功2023.

Energy transition spend continues to be strong as evidenced by the successes Lal highlighted a few minutes ago. Energy security investments, including LNG continue to accelerate especially in North America and the Middle East. In hybrid, life sciences investments due to reshoring continue to move forward, and metals and mining spend is centered around electric vehicles and electrification value chains. Those value chains are also benefiting discrete markets, especially in the U.S.

拉爾幾分鐘前強調的成功證明了能源轉型支出繼續強勁。包括液化天然氣在內的能源安全投資繼續加速，尤其是在北美和中東。在混合動力領域，由於回流而導致的生命科學投資繼續向前發展，金屬和採礦支出集中在電動汽車和電氣化價值鏈上。這些價值鏈也使離散市場受益，尤其是在美國

The one weakness we see in the business today is our commercial exposure within the safety and productivity segment, which was down 10% in the first quarter. We expect these sales to improve as we move throughout the year as we face easier comparisons and we see early signs of a turn in demand.

我們今天在業務中看到的一個弱點是我們在安全和生產力領域的商業風險，第一季度下降了 10%。我們預計這些銷售額會隨著我們全年的移動而有所改善，因為我們面臨更容易的比較，並且我們看到了需求轉變的早期跡象。

Please turn to Slide 8. We're maintaining our full year guidance based on the underlying strength in our end markets and robust backlog. The guide for underlying sales growth remains at 6.5% to 8.5%. We now expect currency to be less of a headwind at 2 points, and AspenTech is expected to contribute 3.5 points. Therefore, we are increasing our net sales expectations to 8% to 10% of a point from the previous guide.

請轉到幻燈片 8。我們將根據終端市場的潛在實力和強勁的積壓情況維持全年指導。基本銷售增長的指引仍為 6.5% 至 8.5%。我們現在預計貨幣的逆風將減少 2 個百分點，而 AspenTech 預計將貢獻 3.5 個百分點。因此，我們將我們的淨銷售額預期從之前的指南提高到 8% 到 10%。

We are holding operating leverage, adjusted EPS and free cash flow conversion for the year at the previous guidance. Within that guide, we intend to cover the unexpected stock comp headwind that we had in the first quarter with excellent operational performance.

我們在之前的指導下持有本年度的經營槓桿、調整後的每股收益和自由現金流轉換。在該指南中，我們打算以出色的運營業績來彌補我們在第一季度遇到的意想不到的股票競爭逆風。

For the second quarter, we expect underlying sales growth of 8% to 10%. Currency continues to be a headwind, reducing sales growth by approximately 3 points. AspenTech will contribute approximately 5.5 points, and net sales are expected to be 10.5% to 12.5% up. leverage expectations again are in the mid- to high 30s. Adjusted earnings per share is expected to be between $0.95 and $1, which is a 13% increase at the midpoint of the guide. We've included quarterly data for 2022 on a continuing ops basis in our press release and in the 8-K that was filed this morning.

對於第二季度，我們預計基本銷售額增長 8% 至 10%。貨幣仍然是一個不利因素，使銷售額增長減少了大約 3 個百分點。 AspenTech 將貢獻約 5.5 個百分點，預計淨銷售額將增長 10.5% 至 12.5%。槓桿率預期再次處於 30 年代中高水平。調整後每股收益預計在 0.95 美元至 1 美元之間，較指南中值增長 13%。我們在新聞稿和今天上午提交的 8-K 中包含了 2022 年持續運營的季度數據。

Thank you for your attention, and we'll now turn it over to the operator for Q&A.

感謝您的關注，現轉交給接線員進行答疑。

(Operator Instructions) Our first question will come from Scott Davis with Melius Research.

（操作員說明）我們的第一個問題將來自 Melius Research 的 Scott Davis。

A couple of little thing cleanup items, since I think these slides are pretty clear. But was price predominantly -- you think about the total growth in the quarter, 6% was price. Does price make up most of that?

幾個小東西清理項目，因為我認為這些幻燈片非常清楚。但主要是價格——你想想本季度的總增長，6% 是價格。價格佔了大部分嗎？

Scott, it's Lal here. Yes, in the quarter, price accounted for 4 points approximately out of the 6, 2 points of volume.

斯科特，我是拉爾。是的，在本季度，價格約佔 6、2 個點中的 4 個點。

And did that cover costs, Lal?

這包括成本嗎，拉爾？

Yes, sir.

是的先生。

Okay. And just a quick follow-up here on life sciences. I know some of your peers have seen some weakness in life sciences, but you guys made some pretty positive comments relating to that end market. Can you be -- or just give us a little bit more color on what your customers are spending money on. You mentioned localization, but perhaps a little bit more color there would be helpful.

好的。在這裡只是對生命科學的快速跟進。我知道你們的一些同行已經看到了生命科學領域的一些弱點，但你們對該終端市場發表了一些非常積極的評論。你可以 - 或者只是給我們更多關於你的客戶花錢的顏色。你提到了本地化，但也許多一點顏色會有幫助。

Yes. No, a very active quarter in life sciences globally, Asia, Southeast Asia, United States, East Coast and Europe. A variety of projects, we chose one to highlight with you today. It's predominantly around automation. It's expansion of capacity. It's driven by the trends that we discussed at our investor conference, whether it's personalized medicine or capacity derisking in the world areas. We have yet, Scott, to expand with a full offering of AspenTech into the space that's in development and will be released to you shortly, but that will give us another avenue as we bring optimization software into that space.

是的。不，在全球、亞洲、東南亞、美國、東海岸和歐洲，生命科學領域非常活躍。各種各樣的項目，我們今天選擇了一個與您一起強調。它主要圍繞自動化。就是擴容。它是由我們在投資者會議上討論的趨勢驅動的，無論是個性化醫療還是世界領域的產能去風險化。 Scott，我們還沒有將 AspenTech 的完整產品擴展到正在開發的領域，並將很快向您發布，但這將為我們提供另一條途徑，因為我們將優化軟件引入該領域。

Our next question will come from Josh Pokrzywinski with Morgan Stanley.

我們的下一個問題將來自摩根士丹利的 Josh Pokrzywinski。

Just a couple of questions, both relating to kind of orders pipeline backlog and the conversions there. I guess while backlog has not had kind of this enormous surge that you've seen maybe in some other names that had a tougher time on supply chain, but how do you think about backlog conversion in your guidance? Is the expectation that orders start to moderate versus accelerate? Where would you be pleased to see backlog over the next 12 months? And then sort of a second related question, how do you feel about kind of the pipeline of projects today and the pace at which things are looking out of those?

只有幾個問題，都與訂單管道積壓和那裡的轉換有關。我想雖然積壓並沒有像您在供應鏈上經歷過更艱難時期的其他一些名字中看到的那樣巨大的激增，但是您如何看待指南中的積壓轉換？訂單開始放緩還是加速增長？在接下來的 12 個月裡，您會高興地看到哪裡有積壓？然後是第二個相關問題，您如何看待今天的項目管道以及這些項目的發展速度？

Yes. No, backlog did increase in the quarter as we went through. Look, I do feel very confident with the order pacing in the businesses, with the weakness only in the safety and productivity segment that we described throughout the call.

是的。不，在我們經歷的那個季度，積壓確實增加了。看，我確實對企業的訂單節奏非常有信心，我們在整個電話會議中描述的僅存在於安全和生產力部分的弱點。

Beyond that, the funnel is very robust. It actually grew almost $500 million in terms of size, as we went through the quarter to about $7.3 billion globally, large number of sustainability projects, large number of energy transition projects. And we're executing very well in that capital formation cycle. So we feel very good about that.

除此之外，漏斗非常強大。就規模而言，它實際上增長了近 5 億美元，因為我們在本季度全球範圍內達到了約 73 億美元，大量的可持續發展項目，大量的能源轉型項目。我們在那個資本形成周期中表現得非常好。所以我們對此感覺很好。

So look, I think from an orders perspective, my expectation is we continue to see a very positive environment as we go through the year. And our job here, and I think it's embedded in our second quarter guidance, is to convert the backlog that we have in the business.

所以看，我認為從訂單的角度來看，我的期望是我們在這一年中繼續看到一個非常積極的環境。我們在這裡的工作，我認為它包含在我們第二季度的指導中，是轉換我們在業務中的積壓。

Great. If I could just get one little follow-up on there. How do you feel about kind of the margin that you guys are seeing on some of these larger projects? I know people think about mega projects and margin erosion aggressive bidding. Has that been your experience with this wave?

偉大的。如果我能在那兒進行一點跟進就好了。您如何看待你們在其中一些大型項目中看到的利潤率？我知道人們會考慮大型項目和利潤侵蝕的激進投標。這就是你對這波浪潮的體驗嗎？

No. You see the leverage that we gained in the quarter, about 40 points, there were project shipments within the quarter embedded in it. We feel very, very good about our differentiating capabilities with our technology stack. Yes, there's competitive bidding, but it's nothing out of the ordinary that we've seen and nothing that we can't manage within our pricing models.

不，你看到我們在本季度獲得的槓桿作用，大約 40 個點，本季度內嵌入了項目出貨量。我們對我們的技術堆棧差異化能力感到非常非常滿意。是的，存在競爭性投標，但我們所見並無異常，也無不在我們的定價模型中無法管理。

Correct.

正確的。

Our next question will come from Andrew Kaplowitz with Citigroup.

我們的下一個問題將來自花旗集團的 Andrew Kaplowitz。

Lal, I just want to follow up on the last question in terms of, when I look at orders, have you seen any bigger signs of deceleration activity anywhere outside of safety and productivity? I know you mentioned you're watching chemicals. I think Antonio also mentioned that. Would you expect orders to hold in chemicals or -- and in the other process markets? And orders continue to be focused in the Americas, as you've said in the past.

拉爾，我只想跟進最後一個問題，當我查看訂單時，您是否在安全和生產力之外的任何地方看到任何更大的減速活動跡象？我知道你提到過你在觀察化學品。我想 Antonio 也提到了這一點。您是否希望訂單保留在化學品或 - 以及其他加工市場？正如您過去所說，訂單繼續集中在美洲。

Yes, good question. We had a really good Americas quarter and strong momentum there, a very strong Western Europe quarter with great momentum there. Of course, Eastern Europe is relative weakness because of Russia, of course, as we walked away from that market. So the comparables there were pretty tough.

是的，好問題。我們有一個非常好的美洲季度和強勁的勢頭，一個非常強勁的西歐季度，那裡勢頭強勁。當然，東歐由於俄羅斯而相對疲軟，當然，因為我們離開了那個市場。所以那裡的可比性非常強硬。

And then Asia and the Middle East, very strong. Of course, China was down for us in the quarter, but we see that coming back here in the second quarter and expect high single digits as we finish out the year. So generally, Andy, based on what we're seeing beyond the safety productivity segment, I feel very confident about not just the second quarter guide we put out there, but the full year at this point. Ram, any color?

然後是亞洲和中東，非常強大。當然，中國在本季度對我們來說有所下滑，但我們看到第二季度又回來了，並預計在今年結束時會出現高個位數。所以總的來說，安迪，根據我們在安全生產力領域之外所看到的情況，我不僅對我們在那裡發布的第二季度指南，而且對這一點的全年指南都充滿信心。拉姆，任何顏色？

Yes. I think Western Europe being resilient is very positive for us. And then the KOB3 business, which is now close to 65% of our total sales mix in the new company, has been very strong. So that's a good sign. And Andy, the project funnel is building. So at this point, in the core business outside of safety and productivity, no signs of weaknesses.

是的。我認為西歐的韌性對我們來說非常積極。然後是 KOB3 業務，它現在接近我們新公司總銷售組合的 65%，一直非常強勁。所以這是一個好兆頭。安迪，項目漏斗正在建設中。因此，在這一點上，在安全和生產力之外的核心業務中，沒有任何弱點。

Very helpful, guys. And then you talked about this a little bit, but you delivered incrementals of 40%. You mentioned the major reason is that positive mix from strength in the Americas. Is there any reason why that would change as you go throughout the year? And I know you talked a bit about price, but did price versus costs come in a little bit better than you would have thought for Q1? And could that continue for the year?

非常有幫助，伙計們。然後你談到了一點，但你交付了 40% 的增量。你提到的主要原因是美洲實力的積極組合。有什麼理由可以解釋為什麼這一年會隨著時間的推移而改變嗎？我知道你談過一些關於價格的問題，但價格與成本的比值是否比你對第一季度的預期要好一點？這種情況會持續一年嗎？

Yes, I think we're going to see strong price cost through the year. And frankly, with fundamentally price holding at high levels and like we saw in the first quarter, but also coupled with commodities softening as we go into the second half as we see both commodities as well as logistics turn favorable. So I think really, the margin performance in Q1 is, yes, Americas mix, but also strong price cost, which should continue through the year. And we don't expect North America sales to soften through the year. So the dynamics we saw in Q1 should continue through the year.

是的，我認為我們將在今年看到強勁的價格成本。坦率地說，從根本上講，價格保持在高位，就像我們在第一季度看到的那樣，但隨著我們進入下半年，我們看到商品和物流都變得有利，同時商品走軟。所以我真的認為，第一季度的利潤率表現是美洲的混合，但價格成本也很高，這應該會持續到今年。而且我們預計今年北美的銷售額不會疲軟。因此，我們在第一季度看到的動態應該會持續到全年。

Our next question will come from Deane Dray with RBC Capital Markets.

我們的下一個問題將來自 RBC Capital Markets 的 Deane Dray。

Look, I know it's a happy day in St. Louis. Emerson has had such an important presence in the community for so many years. So I'm sure that's great news for everybody.

聽著，我知道今天在聖路易斯是快樂的一天。多年來，艾默生在社區中的影響力如此之大。所以我相信這對每個人來說都是個好消息。

Thanks, Deane. I think we're all pretty excited about the decision and the process that we went through.

謝謝，迪恩。我認為我們都對我們所經歷的決定和過程感到非常興奮。

Yes. And it also avoids the logistics and disruptions and so forth. So that's great to hear. My question would be for Frank. For reaffirming the free cash flow conversion, 100% for the year. What has to change in working capital? We're still seeing such across the industrials, the buffer inventory required with supply chains are still chewing up enough of working capital that you're seeing lots of underperformance on free cash flow. So how do you see this playing out?

是的。它還避免了物流和中斷等問題。所以很高興聽到這個消息。我的問題是給弗蘭克的。重申自由現金流轉換，全年100%。營運資金必須改變什麼？我們在整個工業領域仍然看到這種情況，供應鏈所需的緩衝庫存仍在消耗足夠多的營運資金，以至於你會看到自由現金流表現不佳。那麼你如何看待這件事呢？

Mainly, it's an inventory story. It has to be around getting the backlog out in order to get the inventory down. And the supply chain is adjusting and improving, but in ways that aren't always helpful in terms of difficulty and timing and seats of materials. So that's the fundamental thing that needs to change is that we need to get the inventory out over the next 3 quarters. And a big part of that will be shipping the backlog that we have, and we certainly have a robust backlog level. So it's about execution now going forward. Rob and I discussed that in detail with our businesses when we had our quarterly ops reviews, and I'm sure Ram can comment a little further on the supply chain applications.

主要是，這是一個庫存故事。為了降低庫存，必須解決積壓問題。供應鏈正在調整和改進，但在難度、時間和材料位置方面並不總是有幫助。因此，需要改變的根本是我們需要在接下來的 3 個季度內清空庫存。其中很大一部分將用於運送我們擁有的積壓訂單，而且我們當然擁有強大的積壓水平。所以現在是關於執行的問題。 Rob 和我在進行季度運營審查時與我們的企業詳細討論了這一點，我相信 Ram 可以就供應鏈應用程序進一步發表評論。

Yes. Frank, you said it. I mean at the end of the day, I think -- right now, we were somewhat positively surprised at the pace in which the supply chain delivered in the first quarter. So I think that was one of the reasons inventory built, but that's, in some ways, good news that positions us to execute on the backlog in the remainder of the 3 quarters, and that remains the focus. And obviously, we'll make slight adjustments in optimizing how we drive material in from our supply chains, given that they're performing better. But ultimately, it will come down to execution of the backlog, which we're poised to do.

是的。弗蘭克，你說的。我的意思是，在一天結束時，我認為 - 現在，我們對第一季度供應鏈交付的速度感到有些驚喜。所以我認為這是庫存增加的原因之一，但在某些方面，這是一個好消息，使我們能夠在 3 個季度的剩餘時間里處理積壓訂單，這仍然是重點。顯然，鑑於它們的表現更好，我們將在優化我們從供應鏈中獲取材料的方式上進行微調。但最終，這將歸結為執行積壓的工作，我們準備這樣做。

Great. And then just as a follow-up, and I know there's not been any specifics provided yet is, what's the potential for other portfolio moves more in the way of cleanup? We could point to some businesses that would be less core under the new automation pure-play framework. It's just -- maybe you can just comment on the willingness of the Board to look at this and potential timing in terms of monetization of those businesses.

偉大的。然後作為後續行動，我知道還沒有提供任何具體細節，其他投資組合在清理方面的潛力有多大？我們可以指出一些在新的自動化純遊戲框架下核心地位較低的業務。只是 - 也許你可以評論一下董事會是否願意根據這些業務的貨幣化來考慮這個和潛在的時間安排。

No, it's a great question. We're -- we voiced in our November 2019 Investor Conference that we're going to be active managers of the portfolio, and that is inclusive of both the opportunities to build on the cohesive automation company, but also to continue to prune where and when necessary. At this point, we don't have an impetus to do so, but we'll continue to pursue critical bolt-on acquisitions. Of course, the NI pursuit today that you're aware of, but we're also continuing to look at the existing portfolio. But I would not expect anything of scale thereafter a very busy 2022.

不，這是一個很好的問題。我們——我們在 2019 年 11 月的投資者大會上表示，我們將成為投資組合的積極管理者，這既包括建立這家有凝聚力的自動化公司的機會，也包括繼續削減和削減投資組合的機會。必要時。在這一點上，我們沒有這樣做的動力，但我們將繼續進行關鍵的補強收購。當然，您知道今天的 NI 追求，但我們也在繼續關注現有的產品組合。但我不希望在非常繁忙的 2022 年之後出現任何規模。

Our next question will come from Julian Mitchell with Barclays.

我們的下一個問題將來自巴克萊銀行的 Julian Mitchell。

I think we've had sort of good top-down color. So maybe trying to look at some of the segment pieces a little bit. Maybe on safety and productivity, just starting there. I realize it's quite a small business for you, but I guess two questions on it. One was just talk a little bit about how you see the slope of the organic sales playing out the balance of the year. And then secondly, the margins were up, I think, 100 points in that business year-on-year despite a weak revenue performance. So maybe help us understand how you delivered that and is it sustainable?

我認為我們有一些很好的自上而下的顏色。所以也許試著看看一些片段。也許在安全和生產力方面，只是從那裡開始。我知道這對你來說是個小生意，但我猜有兩個問題。一個只是談談你如何看待有機銷售的斜率在今年的平衡中發揮作用。其次，儘管收入表現不佳，但我認為該業務的利潤率同比增長了 100 個百分點。那麼也許可以幫助我們了解您是如何交付的，它是否可持續？

Yes. Julian, Ram here. In terms of the buildup of the sales, I think Q2 will be negative, but we anticipate it going positive in the second half or close to a flat year for the full year. That's kind of how we're looking at safety and productivity. The margin improvement clearly driven by -- we had some focused restructuring that we executed in that business, anticipating the slowdown second half of last year and then favorable price cost performance, certainly strong price in the business close to 9 points of price in Q1. Obviously, the cost savings flowing through and then softening materials -- or material costs as we get into the second half should drive continued strong margin performance in the business through the year.

是的。朱利安，拉姆在這裡。就銷售額的增長而言，我認為第二季度將是負數，但我們預計下半年或接近全年持平。這就是我們看待安全和生產力的方式。利潤率的提高顯然是由——我們對該業務進行了一些重點重組，預計去年下半年經濟放緩，然後是有利的價格成本表現，肯定是該業務的強勁價格接近第一季度價格的 9 個點。顯然，成本節約流經然後軟化材料 - 或者我們進入下半年時的材料成本應該會推動全年業務持續強勁的利潤率表現。

That's very helpful. And then secondly, just on the discrete business. You grew, I think, 6 points in the quarter. Maybe remind us kind of what your main areas of strength are in discrete, whether it's by vertical? And I assume there's a lot of domestic business and also Europe in there. And also, I think you mentioned briefly some early cycle elements softening. So maybe expand on that a little bit and whether you see the discrete business kind of holding that 6% growth rate through the balance of the year.

這很有幫助。其次，就離散業務而言。我認為你在本季度增長了 6 分。也許提醒我們你的主要優勢領域是離散的，無論是垂直的嗎？而且我認為那裡有很多國內業務和歐洲業務。而且，我想你簡要地提到了一些早期週期元素的軟化。因此，也許可以稍微擴展一下，看看你是否看到離散業務在今年餘下時間保持了 6% 的增長率。

Yes. We have a very balanced business from a global perspective, Julian. We saw a broad strength in the United States, both into direct OEM business as well as through our distribution networks. That continues to be very robust. No signs of weakness there, although we're watching that very carefully in terms of stocking levels and other elements. Our Western European business, which I cited earlier, was very strong in the quarter, heavily driven by -- within the discrete business as well. It's particularly in places like France and Germany, which are critical markets for us.

是的。朱利安，從全球角度來看，我們的業務非常平衡。我們在美國看到了廣泛的實力，無論是直接 OEM 業務還是通過我們的分銷網絡。這仍然非常強勁。那裡沒有疲軟的跡象，儘管我們在庫存水平和其他因素方面非常仔細地觀察。我之前提到的我們的西歐業務在本季度非常強勁，在很大程度上受到離散業務的推動。尤其是在法國和德國等地，它們對我們來說是至關重要的市場。

And then lastly, in Asia, outside of China, a very strong market. And now with China recovering, we feel that we are well positioned there. From a technology perspective, again, very good growth on the automation on the control side, PLCs and industrial PCs and, of course, with the various devices around material movement in the plants. Ram, any color for Julian?

最後，在中國以外的亞洲，一個非常強大的市場。現在隨著中國的複蘇，我們覺得我們在那里處於有利地位。從技術角度來看，控制方面的自動化、PLC 和工業 PC，當然還有圍繞工廠物料移動的各種設備，增長非常好。拉姆，朱利安有什麼顏色嗎？

No. I think -- I mean, from a segment perspective, we broadly have factory automation and industrial automation segments within the business. So both those continue to do very well. And frankly, I think we anticipate mid- to high single-digit growth for the year. In that business overall, the 6% was somewhat impacted by shutdowns in China, which that business experienced. So frankly, we expect that to improve as we go through the year.

不，我認為 - 我的意思是，從細分市場的角度來看，我們在業務中廣泛擁有工廠自動化和工業自動化細分市場。所以這兩個都繼續做得很好。坦率地說，我認為我們預計今年將實現中高個位數增長。在整個業務中，這 6% 在一定程度上受到了該業務在中國停工的影響。坦率地說，我們預計這一年會有所改善。

Our next question will come from Jeff Sprague with Vertical Research.

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

Maybe a housekeeping one for me first, and then I want to come back to some of the projects, but just can we put a finer point on comp and FX? So the $0.09 headwind, it seems like you expected the $0.01 headwind. Can we just clarify what was -- what is assumed for the entire year and how that's changed versus your original expectations?

也許先為我做家務，然後我想回到一些項目中，但我們能否在 comp 和 FX 上放一個更好的點？所以 0.09 美元的逆風，似乎你預料到了 0.01 美元的逆風。我們能否澄清一下 - 全年的假設情況以及與您最初的預期相比有何變化？

And then on FX, so you're saying in addition to just kind of normal translation headwinds, there was some contract or other backlog adjustments. Could you just elaborate on that a little bit?

然後在 FX 上，所以你說除了正常的翻譯逆風之外，還有一些合同或其他積壓調整。你能詳細說明一下嗎？

Yes. Jeff, it's Frank. Yes. So on FX, I mean, we originally had low double-digit impact on the -- from currency for the year in the guide back in October. That's moderated. It's probably in the $0.05 to $0.10 range now. So I mean, we have a little bit of an improvement there based on the turn in the dollar.

是的。傑夫，是弗蘭克。是的。所以在外匯方面，我的意思是，我們最初對 10 月份指南中的年度貨幣產生了低兩位數的影響。這是主持。現在可能在 0.05 美元到 0.10 美元之間。所以我的意思是，基於美元的轉變，我們在那裡有一點改善。

And then you asked again about stock comp as well, Jeff. So yes, there, we had built in a little bit of an increase in the addition of AspenTech and more or less flattish for the quarter for Emerson, and then we had the mark-to-market impact that was driven by the 30-odd percent increase in the stock price on the legacy plans. So that was entirely incremental to what we had in the guide, $0.09 year-over-year and kind of $0.07 or $0.08 versus the guide. So that's the big headwind we had there, which we are -- which is now kind of embedded in the year, and we we'll just absorb that and overcome it within the year guide.

然後你又問了關於股票補償的問題，傑夫。所以是的，在那裡，我們已經增加了 AspenTech 的增加，並且 Emerson 在本季度或多或少持平，然後我們產生了由 30 多個驅動的按市值計算的影響遺留計劃的股價上漲百分比。因此，這完全是我們在指南中的增量，同比增長 0.09 美元，與指南相比增加了 0.07 美元或 0.08 美元。所以這就是我們在那裡遇到的巨大逆風，我們是 - 現在有點嵌入了這一年，我們將吸收它並在年度指南中克服它。

And just on the projects, Lal, interesting couple you call out here. Could you just maybe give us a sense of kind of the dollar scope of some of these large benchmark product project like this, maybe the green hydrogen project what your content looks like on the front end and maybe what the tail of a project looks like?

就項目而言，拉爾，你在這里大聲疾呼的一對有趣的夫婦。你能不能給我們一些像這樣的大型基準產品項目的美元範圍的感覺，也許是綠色氫項目，你的內容在前端是什麼樣的，也許項目的尾部是什麼樣的？

Yes. No, these fall very much within the parameters, Jeff, that we laid out in terms of automation dollars per gigawatt as we think about hydrogen, for example. 600,000 -- I think it's -- I believe it's 600,000 per gigawatt is what we laid out, if I'm not mistaken. Ram?

是的。不，這些非常符合參數，傑夫，我們在考慮氫氣時根據每千瓦的自動化成本製定了這些參數。 600,000——我認為是——如果我沒記錯的話，我相信我們計劃的是每千兆瓦 600,000。內存？

But on the petrochemicals and, for example, ethylene, again, KOB1, very significant there in the $20 million to $30 million type of scale. And then, of course, there's all the downstream and the instrumentation business to come. So some of these are very sizable. The specific one that we highlighted, of course, about $50 million in first purchase, which is the DeltaV system and then there's further instrumentation to come. So they're very sizable in terms of scale, but in line with how we think about dollars of automation per capacity, depending on the market they're in.

但在石化產品上，例如乙烯，再次，KOB1，在 2000 萬至 3000 萬美元的規模上非常重要。然後，當然，還有所有的下游和儀器業務。所以其中一些非常可觀。我們強調的具體一個，當然，第一次購買大約 5000 萬美元，這是 DeltaV 系統，然後還有進一步的儀器。因此，它們在規模上非常可觀，但符合我們對每容量自動化成本的看法，具體取決於它們所在的市場。

Our next question will come from Steve Tusa with JPMorgan.

我們的下一個問題將來自摩根大通的 Steve Tusa。

Can you guys just talk about maybe some guidance for Aspen in particular, especially the cash flow coming in the next couple of quarters. How confident you are in that and where you see that coming in?

你們能不能談談特別是對 Aspen 的一些指導，尤其是未來幾個季度的現金流。您對此有多大信心以及您看到它的作用在哪裡？

Yes. Steve, you cut out a little bit -- this is Frank. You cut out a little bit at the beginning of your question. I mean, again...

是的。史蒂夫，你有點過分了——我是弗蘭克。你在問題的開頭刪減了一點。我的意思是，再...

Aspen free cash flow. Yes, Aspen free cash flow...

阿斯彭自由現金流。是的，阿斯彭自由現金流……

Oh Aspen...

哦阿斯彭...

I mean, I -- Steve, I think -- go ahead.

我的意思是，我——史蒂夫，我想——繼續。

Yes, on plan, very seasonal. So their fourth quarter, our third quarter will be a big cash flow quarter. And we see and we -- based on the plan, we think they'll deliver it as they have in the past, so it will be heavily in that quarter.

是的，按計劃，非常季節性。所以他們的第四季度，我們的第三季度將是一個很大的現金流季度。我們看到了——根據計劃，我們認為他們會像過去一樣交付它，所以它會在那個季度大量出現。

On guide, Steve, I think third quarter for them will be -- or our third quarter will be the big quarter.

在指導下，史蒂夫，我認為他們的第三季度將是 - 或者我們的第三季度將是重要的季度。

Yes. I mean, obviously, they can provide the color and the background on that. But I mean that is the seasonal on for their cash flow, and we would expect that to maintain.

是的。我的意思是，很明顯，他們可以提供顏色和背景。但我的意思是，這是他們現金流的季節性變化，我們預計這種情況會保持下去。

Right. Yes, just it does influence your cash. So just curious if you guys -- the owners have a view on that. When it comes to NATI, how coveted is this asset for you guys? I mean it doesn't seem like they're going to take anything below $60. Is -- Are you guys really willing kind of go to the wall for this?

正確的。是的，只是它確實會影響您的現金。所以很好奇你們是否 - 所有者對此有看法。說到 NATI，你們對這項資產有多垂涎？我的意思是他們似乎不會接受低於 60 美元的任何東西。是——你們真的願意為此碰壁嗎？

I can be very clear with you, then we're not going to be the purchaser of the asset.

我可以很清楚地告訴你，我們不會成為資產的購買者。

Our next question will come from Nigel Coe with Wolfe Research.

我們的下一個問題將來自 Wolfe Research 的 Nigel Coe。

Okay. I won't be asking questions on the NATI purchase price, so I'll move on from that. Just want to go back to FX, if I can. I think you mentioned long-term contract marks and it's not something I've heard from Emerson before. So I know we've had some backlog revaluation. So just maybe talk about what caused that to that mark on FX. And maybe just on the below line stuff, what is the normalized stock comp beyond this year once we roll off this plan? How should we size that?

好的。我不會問有關 NATI 購買價格的問題，所以我會繼續。如果可以的話，只想回到 FX。我想你提到了長期合同標記，而我以前從 Emerson 那裡聽說過這件事。所以我知道我們有一些積壓重估。所以也許可以談談是什麼導致了 FX 上的那個標記。也許只是在下面的內容上，一旦我們推出這個計劃，今年以後的標準化股票價格是多少？我們應該如何確定它的大小？

Okay. So Nigel, this is Frank. So the -- yes, we had a significant -- of the currency that was in the quarter, a significant portion of it was due to the impact of the accounting on long-term contracts. So you have the mark-to-market long-term contracts. Typically, these are 2 EPCs, and they tend to be in places like Korea and other markets where we typically are in talking about currency as opposed to translation currency when we talk about Europe and China.

好的。奈傑爾，這是弗蘭克。因此 - 是的，我們有很大 - 本季度的貨幣，其中很大一部分是由於會計對長期合同的影響。所以你有按市值計價的長期合同。通常，這些是 2 個 EPC，它們往往位於韓國和其他市場，在這些地方我們通常談論貨幣，而不是在我們談論歐洲和中國時使用換算貨幣。

And the accounting basically brings those marks to 0 when the contract closes out. But during the life of the contract, you mark-to-market up and down. And depending on where you are in the life cycle of a contract and what the backfill is for those contracts, you'll get a mark. In most quarters, it's not big enough to matter. This quarter, it was $0.04 or $0.05, so it was big enough to matter. And that's what drives it. And we try not to talk about it. The word -- it's embedded derivatives. We don't talk about embedded derivatives because it's just not helpful, but that's specifically the accounting that drives that mark on long-term contracts.

當合同結束時，會計基本上將這些標記歸零。但在合同有效期內，你按市價上下調整。根據您在合同生命週期中所處的位置以及這些合同的回填內容，您會得到一個分數。在大多數情況下，它還不夠大。本季度，它是 0.04 美元或 0.05 美元，所以它足夠重要。這就是驅動它的原因。我們盡量不談論它。這個詞——它是嵌入式衍生品。我們不談論嵌入式衍生品，因為它只是沒有幫助，但這特別是推動長期合同標記的會計。

Okay. Yes, embedded derivatives, above my pay grade. So let's move on from that, but we'll follow up offline. But on the -- just on the guide, so there's some moving pieces here. So it feels like FX is very neutral. The weaker dollar offset by some of these marks probably got some share buyback benefits relative to plan, well, certainly versus our model, and then we have the stock comp offset. Is that sort of the major moving pieces? Anything else you'd highlight?

好的。是的，嵌入式衍生品，高於我的薪酬等級。因此，讓我們繼續前進，但我們將離線跟進。但是在 - 只是在指南上，所以這裡有一些動人的部分。所以感覺 FX 非常中性。相對於計劃，肯定是相對於我們的模型，這些馬克抵消了美元走軟可能會帶來一些股票回購收益，然後我們有股票補償抵消。這是主要的移動件嗎？你還有什麼要強調的嗎？

And then maybe just talk about the sales acceleration. We've got some China noise in the back half of the year, with the lockdowns in the prior year. But what kind of macro environment are you planning for? Especially in second quarter fiscal, some of your short-cycle peers are highlighting some inventory corrections, et cetera. What do you see in discrete markets and some of the other relevant markets?

然後也許只是談論銷售加速。我們在今年下半年聽到了一些來自中國的聲音，以及前一年的封鎖。但是你在規劃一個什麼樣的宏觀環境呢？特別是在第二季度財政年度，您的一些短週期同行正在強調一些庫存修正等。您對離散市場和其他一些相關市場有何看法？

Yes. So I'll take a crack, Ram here, on the sales. From a sales perspective, obviously, we have acceleration built in to the year, fundamentally, with orders holding in the mid-single digits and us shipping backlog that we described with improving supply chain. So certainly, Q2, Q3 and into Q4, we'll expect the ramp-up in absolute sales as we execute on the backlog.

是的。因此，我會在銷售方面採取措施，Ram。從銷售的角度來看，顯然，我們在今年內實現了加速，從根本上說，訂單保持在中等個位數，我們描述了改善供應鏈的運輸積壓。因此，當然，第二季度、第三季度和第四季度，我們預計在執行積壓訂單時絕對銷售額會增加。

In terms of distributor destocking we haven't seen it in any of our businesses. Certainly, a lot of our discrete businesses go through distributors. Some of our process businesses go through distributors. We haven't seen it and nor do we anticipate it just given the dynamics of what we're seeing. And then to top it off, price will remain strong through the year that will contribute to growth as well.

在分銷商去庫存方面，我們還沒有在我們的任何業務中看到它。當然，我們的許多離散業務都通過分銷商進行。我們的一些流程業務通過分銷商進行。鑑於我們所看到的動態，我們還沒有看到它，也不會預期它。然後最重要的是，價格將在今年保持強勁，這也將有助於增長。

Our next question will come from Joe Ritchie with Goldman Sachs.

我們的下一個問題將來自高盛的 Joe Ritchie。

Can you just touch on AspenTech a little bit? I know, Lal, you mentioned some of the wins, that Ras Laffan win. It was interesting. But like how is that going thus far? And then I noticed that the adjusted EBITDA margin was a touch lighter than what you guys expect for a full year basis. Maybe just provide some color around seasonality in that business as well.

您能簡單介紹一下 AspenTech 嗎？我知道，拉爾，你提到了一些勝利，即拉斯拉凡的勝利。很有意思。但到目前為止進展如何？然後我注意到調整後的 EBITDA 利潤率比你們對全年的預期要輕一些。也許也可以為該業務的季節性提供一些顏色。

Yes. So AspenTech, I think, for us, from a synergy perspective, going according to plan. And frankly, a lot of the early synergies we've built in is on projects like Ras Laffan, where Aspen won some very, very good content. I think the sales channels and the engagement of our sales channel and selling their capabilities continues as planned. Now really what we're driving there is in terms of perpetual licenses and bundling them on projects, a lot of success converting our wins into ACV type of revenue for AspenTech is a work in process and should pick up momentum as we go into the second half of the year.

是的。所以我認為，從協同作用的角度來看，AspenTech 對我們來說是按計劃進行的。坦率地說，我們建立的許多早期協同作用都是在像 Ras Laffan 這樣的項目上進行的，Aspen 在這些項目中贏得了一些非常非常好的內容。我認為銷售渠道和我們銷售渠道的參與以及銷售他們的能力將按計劃繼續進行。現在我們真正推動的是永久許可並將它們捆綁在項目上，將我們的勝利轉化為 AspenTech 的 ACV 類型收入的大量成功是一項正在進行的工作，並且在我們進入第二個階段時應該會獲得動力半年。

So we feel pretty good about the synergies. We certainly feel pretty good about the sales forecast we've built in for AspenTech. Obviously, the plan they presented and the plan we've built in into the consolidated Emerson numbers. And then no concerns on the margin performance, the EBITDA performance. Seasonally, their third quarter -- or their fourth quarter, our third quarter, is the biggest quarter. It was last year, and it will again be this year.

所以我們對協同作用感覺很好。我們當然對我們為 AspenTech 建立的銷售預測感到非常滿意。顯然，他們提出的計劃和我們已經納入合併的艾默生數字中的計劃。然後不用擔心利潤率表現，EBITDA 表現。季節性地，他們的第三季度——或他們的第四季度，我們的第三季度，是最大的季度。去年是，今年又是。

Super helpful, Ram. And then maybe my follow-on question. Lal, at the Investor Day, you guys highlighted all of these big opportunities in automation technology, and you talked about your pipeline extending. I'm just wondering, where have you seen the most movement recently in terms of your pipeline and those opportunities?

超級有幫助，拉姆。然後也許是我的後續問題。 Lal，在投資者日，你們強調了自動化技術中的所有這些重大機遇，並且你們談到了你們的管道擴展。我只是想知道，就您的管道和這些機會而言，您最近在哪裡看到了最多的變化？

No, it's a good question. Of course, we did have a very active quarter in terms of the project funnel and particularly not just in projects that were booked and hence exited the funnel, but also in the buildup of what we saw in terms of activity. I would suggest that the predominant element of growth came in two areas. One is life sciences, which grew significantly in the funnel in the quarter. And secondly, the energy transition, which continues to be very robust, both here in the U.S. and in the Middle East predominantly and became additive to the funnel. And that funnel grew not just in terms of dollars by about $0.5 billion, but also in terms of number of projects, but only by 8 projects, which tells you that the average size of projects are getting larger, which is also a dimension here.

不，這是個好問題。當然，我們在項目漏斗方面確實有一個非常活躍的季度，特別是不僅在已預訂並因此退出漏斗的項目中，而且在我們所看到的活動方面的積累方面。我認為增長的主要因素來自兩個領域。一個是生命科學，它在本季度的漏斗中增長顯著。其次，能源轉型繼續非常強勁，主要發生在美國和中東，並成為漏斗的補充。這個漏斗不僅在美元方面增長了大約 5 億美元，而且在項目數量方面也有所增長，但只有 8 個項目，這告訴你項目的平均規模越來越大，這也是這裡的一個維度。

And the only thing I would add is the LNG size of the funnel remains large, meaningful. And what we saw in the last quarter was a good momentum on the FID progress associated with many, many LNG projects in the U.S. where we're very, very well positioned. A lot of these are going through [Bechtel] in Texas and Louisiana. And our expectation is, we will ramp up order booking activity in those -- on those projects as we go through the second half of the year.

我唯一要補充的是漏斗的液化天然氣規模仍然很大，有意義。我們在上個季度看到的是與美國許多液化天然氣項目相關的 FID 進展的良好勢頭，我們在這些項目中處於非常非常有利的位置。其中很多都在德克薩斯州和路易斯安那州的 [Bechtel] 進行。我們的期望是，我們將在今年下半年增加這些項目的訂單預訂活動。

Our next question will come from Joe O'Dea with Wells Fargo.

我們的下一個問題將來自富國銀行的 Joe O'Dea。

I wanted to start on sort of price and price cost. On the price cost side of things, can you size the margin impact in the quarter and then what you're thinking about for the cadence of that impact over the course of the year? And I think you also noted some price increases to start 2023. Is that broad-based? Are those more concentrated in parts of the business?

我想從某種價格和價格成本開始。在價格成本方面，您能否衡量本季度的利潤率影響，然後您在考慮這一影響在一年中的節奏？而且我想您還注意到 2023 年開始的一些價格上漲。這是廣泛的基礎嗎？那些更集中在業務的某些部分嗎？

You want to talk about price increases?

你想談談漲價？

Yes. So from a -- I'll take a crack at the price increases. I mean, we did have a good price increase in October, we typically do as we enter the fiscal year. Select product lines had price increases in Jan. We have a few more product lines slated for midyear price increases around the April time frame. In general, though, I think pricing was 4% realized price in the first quarter. We expect it to stay at those levels as we go through the year. So pricing will remain strong.

是的。因此，從 - 我將對價格上漲採取措施。我的意思是，我們在 10 月份確實有很好的價格上漲，我們通常會在進入財政年度時這樣做。部分產品線在 1 月提價。我們還有一些產品線計劃在 4 月前後進行年中提價。不過，總的來說，我認為第一季度的定價是實現價格的 4%。我們預計這一年它會保持在這些水平。因此定價將保持堅挺。

As we go through the year, we expect those price increases as they roll through will continue to be accretive to margin through the entire year. It was bigger in the first quarter than really as we go through the year. Again, then we'll see what incremental price increases we put through. Net material inflation also should become a tailwind in the back half of the year. So all in all, accretive. Somewhere between 0.5 point and 1 point, it really depends on how it rolls through, but certainly a good story from a margin standpoint as we go through the year.

隨著我們度過這一年，我們預計隨著價格的上漲，這些價格上漲將繼續增加全年的利潤率。第一季度的規模比我們全年的實際規模都要大。再次，然後我們將看到我們通過了哪些增量價格上漲。淨材料通脹也應該成為今年下半年的順風。總而言之，增值。在 0.5 點和 1 點之間的某個地方，這實際上取決於它如何滾動，但從利潤率的角度來看，隨著我們度過這一年，這肯定是一個好故事。

Got it. And then I wanted to circle back on some of the discrete questions and just kind of bigger picture macro. I think that the industry outlook for discrete up mid-single digits, I assume that's sort of a combination of kind of low single-digit price, low single-digit volume, would expect areas like batteries and semiconductors are growing faster than that. But when we think about what we're seeing on sort of PMI side of things and then thinking about sort of discrete just growing through a PMI slowdown, I mean can you touch on -- is the expectation sort of outside of some of the structural growth areas that we just continue to see some kind of low single-digit volume growth and sort of no kind of connection there between some short-cycle macro indicators of slowing but not really seeing it in your end markets?

知道了。然後我想回到一些離散的問題和更大的宏觀宏觀問題上。我認為離散的中個位數增長的行業前景，我認為這是低個位數價格、低個位數數量的組合，預計電池和半導體等領域的增長速度會比這快。但是，當我們考慮我們在 PMI 方面看到的事情，然後考慮通過 PMI 放緩增長的離散數據時，我的意思是你能談談——是不是一些結構性的預期？增長領域，我們只是繼續看到某種低個位數的銷量增長，並且在一些短週期宏觀指標之間沒有任何联系，但在您的終端市場中並沒有真正看到它？

Yes. So you said most of it. I think the plan really is LSD, low single-digit price, low single-digit volume. The growth vectors, semiconductors, battery manufacturing. Frankly, from a sector that we're cautious on automotive is something we're going to have to carefully watch. We have had good performance so far, but automotive is an area that we have to watch very carefully. And then our stocking levels in terms of distribution, again, we haven't seen any slowdown yet. But certainly, to your point, based on the PMI forecast and what is anticipated, there could be slowing in that sector. So if you put all that together, I think we feel pretty good about our mid-single-digit forecast.

是的。所以你說了大部分。我認為這個計劃真的是 LSD，低個位數的價格，低個位數的數量。增長載體、半導體、電池製造。坦率地說，從我們對汽車持謹慎態度的行業來看，我們將不得不仔細觀察。到目前為止，我們的表現不錯，但汽車是我們必須非常仔細觀察的領域。然後我們在分銷方面的庫存水平，我們還沒有看到任何放緩。但當然，就你的觀點而言，根據 PMI 預測和預期，該行業可能會放緩。因此，如果將所有這些放在一起，我認為我們對我們的中等個位數預測感到非常滿意。

Our next question will come from Christopher Glynn with Oppenheimer.

我們的下一個問題將來自克里斯托弗格林和奧本海默。

Just wanted to tie a little bit the organic outlook versus backlog growth, up $700 million suggests the 1.2 book-to-bill, which seems a little congruous with 5% orders growth, but I suppose that's a function of the prior year book-to-bill. So just wondering if you could comment on that book-to-bill interpretation. And how do you characterize backlog size versus what you might consider normal in a moderately expanding net end market mix?

只是想將有機前景與積壓增長聯繫起來，增加 7 億美元表明 1.2 的訂單出貨比，這似乎與 5% 的訂單增長有點一致，但我認為這是前一年預訂出貨比的函數-賬單。所以只是想知道您是否可以對這種從訂單到賬單的解釋發表評論。在適度擴大的網絡終端市場組合中，您如何描述積壓規模與您可能認為的正常規模？

Yes. So for -- I think the $700 million is a GAAP number, the 5% is an underlying sales number. But net-net, you are right. If you looked at the first quarter of last year and calibrated versus orders and sales, I think the 5% makes sense with the $700 million build in backlog. I think our expectation for a normalized level of backlog in this business, we're probably at least close to $800 million to $1 billion too high in terms of where we could normally be if the supply chain were optimal, and that's what we're going to have to execute through the year. And as the supply chain continues to improve, that's the normalized level of backlog for this level of sales. So to answer your question directly, it's about $800 million to $1 billion higher than what we would have anticipated.

是的。所以 - 我認為 7 億美元是一個 GAAP 數字，5% 是一個基礎銷售數字。但是 net-net，你是對的。如果你查看去年第一季度並對照訂單和銷售額進行校準，我認為 5% 對 7 億美元的積壓訂單來說是有意義的。我認為我們對這項業務的正常積壓水平的期望，我們可能至少接近 8 億到 10 億美元，如果供應鍊是最佳的，我們通常可以達到的水平，這太高了，這就是我們正在做的將不得不執行一整年。隨著供應鏈的不斷改善，這是這種銷售水平的正常積壓水平。因此，直接回答你的問題，它比我們的預期高出約 8 億至 10 億美元。

Our next question will come from Gautam Khanna with Cowen.

我們的下一個問題將來自 Gautam Khanna 和 Cowen。

I was wondering if you could talk a little bit about the aftermarket, the KOB3 stuff. I think you said it was 65% of sales in the quarter. But where do you see that trending over the next year or 1.5 years? Because it seems like it's been on full tilt for quite a while. Just what do you think the new normal is?

我想知道你是否可以談談售後市場，KOB3 的東西。我想你說過這是本季度銷售額的 65%。但是你在哪裡看到明年或 1.5 年的趨勢？因為它似乎已經全力以赴了很長一段時間。您認為新常態是什麼？

Yes. No. I think we've had a concerted effort across our business to maximize the value of the $130 billion plus installed base. And those are programs that were put in place that drive service MRO and replacement opportunities. We're sitting at, you're right, right around 65%. I expect that to remain within that range. And it's supported by the business programs that we have in the operating companies.

是的。不，我認為我們已經在我們的業務中齊心協力，以最大化 1300 億美元以上的安裝基礎的價值。這些是推動服務 MRO 和更換機會的計劃。我們坐在，你是對的，大約 65%。我希望它保持在該範圍內。它得到了我們在運營公司中的業務計劃的支持。

And I would add, that's the segment of the business where the pricing flows through at higher levels. So obviously, that will remain robust through the year.

我要補充一點，這是定價在更高層次上流動的業務部分。很明顯，這一年將保持強勁。

I appreciate it. And then just a follow-up. Any change to the timing of the divestment out there in Climate Tech? Anything noteworthy there?

我很感激。然後只是跟進。 Climate Tech 的撤資時間有何變化？那裡有什麼值得注意的嗎？

No. We're still thinking about the first half of this calendar year, and everything is on track in terms of the regulatory approvals and standing up the business. So that's all well underway. So we'd expect April, May-ish as a guideline there.

不，我們仍在考慮這個日曆年的上半年，就監管批准和業務發展而言，一切都在按計劃進行。所以這一切都在進行中。因此，我們希望四月、五月左右作為那裡的指導方針。

Our next question will come from Tommy Moll with Stephens.

我們的下一個問題將來自 Tommy Moll 和 Stephens。

I wanted to start on the industry outlook you provided across process hybrid discrete, little variation across the 3, but essentially all growing nicely in the single-digit range. There are others in some of these markets that have double-digit outlooks versus the singles that you provide. I am well aware there's often apple and orange impacts here and making comparisons. But I was just curious, is there any conservatism embedded in these outlooks you provided? Is there anything you would do to help us reconcile some of what we've heard elsewhere?

我想從你提供的跨過程混合離散的行業前景開始，3 種變化不大，但基本上都在個位數範圍內增長良好。在其中一些市場中，還有其他一些市場與您提供的單打相比具有兩位數的前景。我很清楚這裡經常有蘋果和橙色的影響並進行比較。但我只是好奇，你提供的這些觀點中是否包含任何保守主義？您能做些什麼來幫助我們調和我們在其他地方聽到的一些內容嗎？

In terms of the market outlook, Tommy, we feel that we've given a very balanced view of what's out there. The blend or the different types of businesses that we cover in terms of capital modernizations and replacement. We've also taken into account the various geographic trends. But no, I feel that what we put there ties into the guide for the quarter and, of course, our expectations for the year as well.

就市場前景而言，湯米，我們認為我們對市場前景給出了非常平衡的看法。我們在資本現代化和替代方面涵蓋的混合或不同類型的業務。我們還考慮了各種地理趨勢。但不，我覺得我們放在那裡的內容與本季度的指南有關，當然也與我們對今年的預期有關。

And again, within each of the segments, as you recognize, there are big pluses and smaller pluses. Clearly, in the discrete space, which we've been speaking about to a significant amount today, EV, semiconductor elements like that, of course, have a significantly higher growth than some others. But overall, I feel that the indications we've given are fair based on what we see in the marketplace today.

同樣，正如您所認識到的，在每個細分市場中，都有大的優勢和較小的優勢。顯然，在我們今天一直在大量討論的離散空間中，電動汽車、半導體元件之類的增長當然比其他一些元件高得多。但總的來說，我認為根據我們今天在市場上看到的情況，我們給出的指示是公平的。

That's helpful. I also wanted to ask about the repurchase activity. Is it fair to say that the deployment of the full $2 billion in the quarter was an acceleration versus the original plan? And if so, was that -- should we view that more as an opportunistic decision where your stock was under pressure for a period of time you decided to lean in? And to the extent that...

這很有幫助。我也想問一下回購活動。與原計劃相比，本季度全部 20 億美元的部署是否加速？如果是這樣，那是——我們是否應該將其更多地視為一個機會主義的決定，在這種情況下，您的股票在一段時間內處於壓力之下，您決定傾斜？並且在某種程度上...

Yes, I'm sorry, Tommy. This is Frank. No, not really. When we communicated the $2 billion, our intent was to get it done as quickly as possible, and we were able to get it done in the quarter. So it was not really driven by market events, so much as the desire to just make good on the commitment and do it quickly.

是的，對不起，湯米。這是弗蘭克。不，不是真的。當我們傳達 20 億美元時，我們的意圖是盡快完成，我們能夠在本季度完成。因此，它並不是真正受市場事件驅動，而是希望盡快兌現承諾。

And any possibility that you might revisit the potential for more later in the year? Or should we think about 2023 is pretty well spoken for at this point?

您是否有可能在今年晚些時候重新審視更多的潛力？或者我們是否應該考慮 2023 年在這一點上說得很好？

There is really no current intent to do any more share repurchase. We've got other irons in the fire right now. So obviously, circumstances change. You can always revisit, but we have no current plans to revisit it right now. We said we do $2 billion, and we've done that.

目前確實沒有進行任何更多股票回購的意圖。我們現在還有其他熨斗。很明顯，情況發生了變化。您可以隨時重新訪問，但我們目前沒有重新訪問它的計劃。我們說我們做了 20 億美元，我們已經做到了。

Our last question will come from Chris Snyder with UBS.

我們的最後一個問題將來自瑞銀集團的 Chris Snyder。

I wanted to follow up on safety and productivity. You guys mentioned that you're seeing early signs of things bottoming out. I understand comps get easier, but it sounds like you're also starting to see demand turning. So just hoping for more color on what you're seeing to give you confidence that demand is turning there.

我想跟進安全和生產力。你們提到你們看到了觸底反彈的早期跡象。我知道 comps 變得更容易了，但聽起來你也開始看到需求的轉變。所以只是希望你所看到的有更多的顏色，讓你相信需求正在轉向那裡。

Yes. So first off, I think a majority of what we've baked into the plan is comps getting easier. So absolute levels stay the same where they sit today, price comes through and comps get easier. We'll have a better read of it as we go through the current quarter, and I think we'll have a better expectation of the second half. If demand were to improve, which is not baked into the plan, we should get better numbers in safety and productivity. But at this point, it's staying at the current levels and comps getting easier.

是的。所以首先，我認為我們在計劃中融入的大部分內容是讓組合變得更容易。因此，絕對水平與今天的水平保持不變，價格上漲，競爭變得更容易。在本季度，我們將更好地閱讀它，我認為我們將對下半年有更好的預期。如果需求有所改善（這並未納入計劃），我們應該會在安全性和生產力方面取得更好的成績。但在這一點上，它停留在當前水平並且組合變得更容易。

I appreciate that. And then just a follow-up on China. The presentation called out a headwind from China shutdowns on organic growth in the quarter. Could you just provide some more color on how China performed in the quarter and then maybe how it's exiting into the fiscal second quarter with the reopening?

我很感激。然後只是對中國的跟進。該演示文稿指出了中國停工對本季度有機增長的不利影響。您能否提供更多關於中國在本季度的表現以及它如何隨著重新開放進入第二財季的情況？

Yes. So China was down mid-single digits, both incoming orders as well as sales performance in the quarter, and we expect China to be mid-single to high single digits for the full year with high single digits in the second half.

是的。因此，中國在本季度的進貨訂單和銷售業績均下降了中等個位數，我們預計中國全年將下降到中個位數到高個位數，下半年將達到高個位數。

This concludes our question-and-answer session and the 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。