伊頓 (ETN) 2022 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Eaton second quarter earnings conference call. (Operator Instructions) And as a reminder, today's conference is being recorded.

女士們，先生們，感謝您的支持，歡迎參加伊頓第二季度財報電話會議。 （操作員說明）作為提醒，今天的會議正在錄製中。

I would now like to turn the conference over to your host, Yan Jin, Senior Vice President of Investor Relations. Please go ahead.

我現在想將會議轉交給您的主持人，投資者關係高級副總裁嚴進。請繼續。

Hi, good morning. I'm Yan Jin. Thank you for joining us for Eaton's Second Quarter 2022 Earnings Call. With me today are Craig Arnold, our Chairman and CEO; and Tom Okray, Executive Vice President and Chief Financial Officer. Our agenda today include opening remarks by Craig, highlighting the company's performance in the second quarter. As we have done on our past calls, we'll be taking questions at the end of Craig's comments. The press release and the presentation we'll go through today have been posted on our website.

早上好。我是嚴瑾。感謝您參加伊頓 2022 年第二季度財報電話會議。今天和我在一起的是我們的董事長兼首席執行官 Craig Arnold；和執行副總裁兼首席財務官 Tom Okray。我們今天的議程包括克雷格的開場白，重點介紹公司第二季度的業績。正如我們在過去的電話會議中所做的那樣，我們將在 Craig 的評論結束時回答問題。我們今天將通過的新聞稿和演示文稿已發佈在我們的網站上。

This presentation, including adjusted earning per share, adjusted free cash flow and other non-GAAP measures, they're reconciled in the appendix. A webcast of this call is accessible on our website and will be available for replay.

本演示文稿，包括調整後的每股收益、調整後的自由現金流和其他非公認會計原則措施，在附錄中進行了核對。可在我們的網站上收聽此次電話會議的網絡廣播，並可進行重播。

I would like to remind you that our comments today will include statements related to expected future results of the company and are therefore forward-looking statements. Our actual results may differ materially from our forecasted projections due to a wide range of risks and uncertainties that are described in our current earnings release and the presentation.

我想提醒您，我們今天的評論將包括與公司預期未來業績相關的陳述，因此是前瞻性陳述。由於我們當前的收益發布和演示文稿中描述了廣泛的風險和不確定性，我們的實際結果可能與我們的預測預測存在重大差異。

With that, I will turn it over to Craig.

有了這個，我會把它交給克雷格。

Okay. Thanks, Yan. Appreciate it. And we'll start with a summary of the quarter on Page 3, and I'll begin by noting that we had a strong quarter. We posted a number of all-time records, led by 11% organic growth. Our performance was particularly strong in our Electrical businesses, both in the Americas and Global. And as you can see, orders remain strong, and we continue to build record backlogs, supporting the outlook for the year and really, in many cases, I'd say, into next year.

好的。謝謝，嚴。欣賞它。我們將從第 3 頁上的季度摘要開始，我將首先指出我們有一個強勁的季度。我們發布了多項歷史記錄，其中有機增長為 11%。我們在美洲和全球的電氣業務表現尤為出色。正如你所看到的，訂單依然強勁，我們繼續建立創紀錄的積壓訂單，支持今年的前景，實際上，在很多情況下，我會說，到明年。

And I'd emphasize that nearly all of our end markets remain strong, but we're seeing significant strength in commercial, in industrial and data centers, and residential markets and our Electrical businesses. And in our Aerospace business, we saw strong growth, in the commercial business, both in aftermarket and in OEM. This strength, I'd say, is reflected in order growth in Electrical, which was up 25% and the Aerospace business, which was up 19% on a rolling 12-month basis. And our backlog was up some 74% in Electrical and 12% in Aerospace.

我要強調的是，我們幾乎所有的終端市場都保持強勁，但我們在商業、工業和數據中心、住宅市場和我們的電氣業務中看到了顯著的實力。在我們的航空航天業務中，我們看到了商業業務、售後市場和 OEM 的強勁增長。我想說，這種優勢反映在電氣訂單增長上，增長了 25%，而航空航天業務的訂單增長了 19%，連續 12 個月增長了 19%。我們的積壓訂單在電氣方面增加了約 74%，在航空航天方面增加了 12%。

As reported, we also delivered adjusted EPS of $1.87, a 9% increase over prior year and an all-time record, more than offsetting a $0.12 headwind from the impact of acquisitions and divestitures. You'll recall that we own the Hydraulics business in all of Q2 last year. The $1.87 a share was close to the high end of our guidance range as well. We also posted an all-time record segment margins of 20.1%, up 150 basis points over prior year and above the high end of our guidance. So in addition to strong growth, our teams have done really an effective job of managing price to offset inflation.

據報導，我們還實現了 1.87 美元的調整後每股收益，比上年增長 9%，創下歷史新高，抵消了收購和資產剝離帶來的 0.12 美元逆風。您會記得我們在去年第二季度的整個季度都擁有液壓業務。每股 1.87 美元也接近我們指導範圍的高端。我們還公佈了創紀錄的 20.1% 的細分市場利潤率，比去年同期增長 150 個基點，高於我們指引的高端。因此，除了強勁的增長之外，我們的團隊在管理價格以抵消通貨膨脹方面做得非常有效。

And lastly, we're raising our full year guidance as well. We're increasing our organic growth forecast from a range of up 9% to 11% to up 11% to 13%. And we're increasing our full year adjusted EPS to $7.56 at the midpoint, 14% year-on-year growth and despite additional headwinds from FX, from higher interest expense and lower pension income.

最後，我們也提高了全年指導。我們將有機增長預測從 9% 到 11% 提高到 11% 到 13%。我們將全年調整後的每股收益提高至中點 7.56 美元，同比增長 14%，儘管來自外匯、更高的利息支出和更低的養老金收入的額外阻力。

Moving to Page 4, we show the financial results for the quarter. And I'll just note a few items here. First, our revenues were flat year-over-year, with 11% organic growth offset by the net impact of acquisitions and divestitures of some 9% and 2% from negative FX. And we're certainly very pleased with this level of organic growth, but I would also note that growth could have been much better but for persistent shortages of electronic components and COVID-related lockdowns in China.

轉到第 4 頁，我們展示了本季度的財務結果。我在這裡只注意一些項目。首先，我們的收入與去年同期持平，11% 的有機增長被收購和資產剝離的 9% 和 2% 的負外匯淨影響所抵消。我們當然對這種有機增長水平感到非常滿意，但我還要指出，如果沒有電子元件的持續短缺和中國與 COVID 相關的封鎖，增長可能會好得多。

Second, currency headwinds were worse than we expected in our guidance and almost $150 million impact versus prior year. As you'll see in our forward guidance, we expect this number to get worse in the second half. The FX headwinds will also reduce our adjusted EPS by approximately $0.05 in the quarter. Lastly, I'd like to emphasize that we really did achieve a number of all-time records in the quarter, including segment operating profit, segment operating margins and adjusted EPS.

其次，貨幣逆風比我們在指導中的預期更糟，與去年相比，影響接近 1.5 億美元。正如您將在我們的前瞻性指導中看到的那樣，我們預計這個數字在下半年會變得更糟。外匯逆風也將使我們在本季度調整後的每股收益減少約 0.05 美元。最後，我想強調的是，我們確實在本季度實現了多項歷史記錄，包括部門營業利潤、部門營業利潤率和調整後的每股收益。

Next, on Page 5, we have the results of our Electrical Americas business, and really just a strong quarter across the board here. As you can see, organic growth up 16% and record segment margins of 23.2%. We delivered strong growth across all end markets, with particular strength in commercial, residential and industrial markets. And organic growth actually accelerated from Q1, up some 10%, with sequential acceleration in nearly all of our markets with the biggest increases coming from utility, data centers and commercial markets.

接下來，在第 5 頁，我們有我們的美國電氣業務的結果，而且這裡真的只是一個全面的強勁季度。如您所見，有機增長增長了 16%，細分市場利潤率達到 23.2%。我們在所有終端市場都實現了強勁增長，尤其是在商業、住宅和工業市場。有機增長實際上從第一季度開始加速，增長了約 10%，我們幾乎所有市場都連續加速增長，其中最大的增長來自公用事業、數據中心和商業市場。

We did manage to -- through a number of fairly significant supply chain constraints, but did see improvements in metals and resins and logistics, but continue to see challenges in electronic components. Orders on a rolling 12-month basis were up 29%, with strength across all end markets with a range of anywhere from up 18% to up 39%. So we continue to be pleased with strong demand that we're seeing in our end markets and with our backlog, which increased some 89% to a new record level.

我們確實設法通過了一些相當嚴重的供應鏈限制，但確實看到了金屬、樹脂和物流方面的改進，但繼續看到電子元件方面的挑戰。連續 12 個月的訂單增長了 29%，所有終端市場的訂單增長幅度從 18% 到 39% 不等。因此，我們繼續對我們在終端市場看到的強勁需求和我們的積壓感到高興，我們的積壓增加了約 89%，達到了新的紀錄水平。

On a sequential basis, our backlog growth was up almost 20% from Q1. We also delivered record operating margins of 23.2%, up 190 points, driven largely by better-than-expected volumes. And of note, we were successful in offsetting inflation with price and expect this to continue to be on the plus side in the second half.

在連續的基礎上，我們的積壓增長比第一季度增長了近 20%。我們還實現了創紀錄的 23.2% 的營業利潤率，增長了 190 個百分點，這主要是由於銷量好於預期。值得注意的是，我們成功地用價格抵消了通貨膨脹，並預計這將在下半年繼續保持有利的一面。

Turning to Page 6. We show the results of our Electrical Global segment, which produced another very strong quarter, including all-time record sales. In fact, this is our fifth quarter in a row with double-digit organic revenue growth. Organic growth was 12%, with 7% headwind from currency. We saw growth in all regions with particular strength in data centers, commercial and industrial markets. And orders on a rolling 12-month basis were up some 19%, while our backlog grew 38% to a new record level. We also delivered record Q2 operating profits and operating margins. At 18.9%, operating margins were up some 60 basis points from prior year.

轉到第 6 頁。我們展示了電氣全球部門的結果，該部門產生了另一個非常強勁的季度，包括創歷史新高的銷售額。事實上，這是我們連續第五個季度實現兩位數的有機收入增長。有機增長為 12%，貨幣逆風為 7%。我們在所有地區都看到了增長，尤其是在數據中心、商業和工業市場。連續 12 個月的訂單增長了約 19%，而我們的積壓訂單增長了 38%，達到了新的紀錄水平。我們還實現了創紀錄的第二季度營業利潤和營業利潤率。營業利潤率為 18.9%，比上年增長了約 60 個基點。

And lastly, we recently closed a new joint venture in China by acquiring 50% of Jiangsu Huineng Electric, which manufactures and markets low-voltage circuit breakers in China for the renewable energy market. And I'd say here, this is our third electrical JV in China in the last 8 months, which allows us to expand our market participation by offering what we'd say is a multi-tiered portfolio of products serving this very high-growth market, both inside and outside of China. And on a combined basis, these 3 JVs increase our addressable market to about -- by about $17 billion. And so really important part of our future growth strategy coming out of these JVs.

最後，我們最近通過收購江蘇惠能電氣 50% 的股份，在中國成立了一家新的合資企業，該公司在中國為可再生能源市場生產和銷售低壓斷路器。我要在這裡說，這是過去 8 個月我們在中國的第三家電氣合資企業，這使我們能夠通過提供我們所說的服務於這種非常高增長的多層產品組合來擴大我們的市場參與度市場，中國境內外。加起來，這 3 家合資企業將我們的潛在市場增加了約 170 億美元。這些合資企業是我們未來增長戰略中非常重要的一部分。

Before we move to our industrial businesses, here's what I'd summarize the performance of our combined Electrical business. Overall, our electrical sector posted a strong Q2, with 14% organic growth and a 150 basis points improvement in margins. And of note, we really have not seen a slowdown in any of our markets. We continue to see strong growth in orders and backlogs are at record levels. And I'd say that the secular growth trends that we've discussed in the past, including energy transition, are clearly showing up in our order book.

在我們轉向我們的工業業務之前，我想總結一下我們合併後的電氣業務的表現。總體而言，我們的電氣行業第二季度表現強勁，有機增長 14%，利潤率提高 150 個基點。值得注意的是，我們確實沒有看到任何市場出現放緩。我們繼續看到訂單強勁增長，積壓訂單處於創紀錄水平。我想說的是，我們過去討論過的長期增長趨勢，包括能源轉型，都清楚地顯示在我們的訂單簿中。

Moving to Page 7. We have a recap of our Aerospace segment. Revenues increased 19%, including 10% organic growth, 12% growth coming from Mission Systems acquisition and 3% currency headwind. Organic growth in the quarter was particularly strong in our commercial aftermarket and commercial OEM businesses. On a rolling 12-month basis, orders increased 19% while backlog was up 12%.

轉到第 7 頁。我們回顧了我們的航空航天部門。收入增長 19%，其中包括 10% 的有機增長、來自 Mission Systems 收購的 12% 增長和 3% 的貨幣逆風。本季度的有機增長在我們的商業售後市場和商業 OEM 業務中尤為強勁。在連續 12 個月的基礎上，訂單增長了 19%，而積壓訂單增長了 12%。

In the commercial market, as many of you read, travel continues to show positive improvements in both domestic and international markets, certainly a positive indicator for future growth and is consistent with what we saw in the quarter. I would add that while strong, our commercial aftermarket bookings are only at 85% to 90% of their pre-pandemic levels. So we still have ample room for additional growth in this particular segment. And commercial OEM activities, as you've read, also continued to recover.

正如你們中的許多人所讀到的那樣，在商業市場上，旅遊在國內和國際市場上繼續表現出積極的改善，這無疑是未來增長的積極指標，並且與我們在本季度看到的情況一致。我要補充一點，儘管我們的商業售後市場預訂量雖然強勁，但僅為大流行前水平的 85% 至 90%。因此，我們在這一特定領域仍有足夠的額外增長空間。正如您所讀到的，商業 OEM 活動也在繼續復甦。

For military markets, we expect to see increased tailwinds in defense spending, including an uptick in U.S. defense budgets. We've already seen renewed commitments from the European NATO members and expect this to lead to increased defense spending over the next several years. We're also pleased with the profitability of this segment as operating margin stepped up 90 basis points to 21.9%. You'll recall that the peak margins for our Aerospace business was 25%, so we expect this number to continue to move up over the next few years.

對於軍事市場，我們預計國防開支將增加順風，包括美國國防預算的增加。我們已經看到歐洲北約成員國重新做出承諾，並預計這將導致未來幾年國防開支增加。我們也對該部門的盈利能力感到滿意，因為營業利潤率提高了 90 個基點至 21.9%。您會記得我們航空航天業務的最高利潤率為 25%，因此我們預計該數字將在未來幾年繼續上升。

Next, on Page 8, we summarize the performance of our Vehicle segment. Revenues were up 5%, which includes 7% organic growth and 2% negative currency. We had particular strength in the North America light vehicle markets and in our South America business, which was partially offset by flat performance in Europe and weakness in China largely due to the COVID lockdowns. Operating margins were down some 260 basis points, driven primarily by margin compression from inflationary costs and the normal lag in our ability to recover price in the marketplace. We do expect that the price inflation equation will improve in the second half, and it's reflected in our outlook for the year.

接下來，在第 8 頁，我們總結了車輛部門的表現。收入增長 5%，其中包括 7% 的有機增長和 2% 的負匯率。我們在北美輕型汽車市場和南美業務方面具有特別優勢，這部分被歐洲表現平平和中國疲軟所抵消，這主要是由於 COVID 封鎖。營業利潤率下降了約 260 個基點，主要是由於通貨膨脹成本導致的利潤率壓縮以及我們在市場上恢復價格的能力正常滯後。我們確實預計價格通脹等式將在下半年有所改善，這反映在我們對今年的展望中。

Turning to Page 9. We show the results of our eMobility business. Revenues increased 55%, which includes 11% organic growth, 46% from the acquisition of Royal Power and a negative 2% currency impacts. During the quarter, we also delivered more than $70 million of material wins, including a number of wins that leverage our core competency as a company in power distribution and power protection. And while still slightly negative, we narrowed the operating losses by some 530 basis points. This improvement was delivered -- generated by higher volumes and certainly by the acquisition of Royal Power.

轉到第 9 頁。我們展示了我們的 eMobility 業務的成果。收入增長了 55%，其中包括 11% 的有機增長、46% 的收購 Royal Power 和 2% 的負面貨幣影響。在本季度，我們還贏得了超過 7000 萬美元的重大勝利，其中包括利用我們作為配電和電力保護公司的核心競爭力的多項勝利。儘管仍略顯負面，但我們將經營虧損縮小了約 530 個基點。這種改進是由更高的產量產生的，當然也是由收購 Royal Power 產生的。

I'd also note that at the 6-month point, our integration of Royal Power remains on track, and the expected synergies allowing Eaton to sell a broader solution to the marketplace is playing out just as we had hoped. Overall, we continue to make steady progress towards our 2030 goal, which is to create a $2 billion to $4 billion business with attractive 15% segment margins. And as we noted at our investor meeting earlier this year, we expect the segment to deliver $1.2 billion of revenues and 11% margins by 2025.

我還要指出，在第 6 個月時，我們對 Royal Power 的整合仍處於正軌，並且預期的協同效應使伊頓能夠向市場銷售更廣泛的解決方案，正如我們所希望的那樣。總體而言，我們將繼續朝著 2030 年的目標穩步推進，該目標是創造 20 億至 40 億美元的業務，具有 15% 的有吸引力的細分市場利潤率。正如我們在今年早些時候的投資者會議上指出的那樣，我們預計到 2025 年，該部門將實現 12 億美元的收入和 11% 的利潤率。

Next, on Slide 10, we have the updated guidance for 2022. As you can see, for the second time this year, we're increasing our organic growth guidance for all but one of our segments really based upon continued strength in all of our end markets. We're raising our overall organic growth from 9% to 11% to 11% to 13%, on the back really of strength in our Electrical segment, where we've increased growth by 300 basis points in the Americas and 150 basis points in Global.

接下來，在幻燈片 10 上，我們發布了 2022 年的更新指南。如您所見，今年第二次，我們將基於我們所有細分市場的持續實力，為除一個細分市場之外的所有細分市場增加有機增長指南。終端市場。我們正在將我們的整體有機增長率從 9% 提高到 11% 到 11% 到 13%，這得益於我們電氣部門的實力，我們在美洲的增長提高了 300 個基點，在美國提高了 150 個基點全球的。

For margins, we're raising our full year guidance for Eaton to be in the range of 20% to 20.4%, which represents, at the midpoint, 130 basis point improvement over 2021. The 2 changes in the segment include increasing margin guidance for Electrical Americas by 70 basis points to 22.2% at the midpoint and lowering our margin targets for Vehicle by 120 basis points to 16.5% at the midpoint. And as we talked about, the Vehicle reduction really reflects the timing and margin compression associated with inflation versus price realization that we discussed earlier. So overall, I'd say a strong first half, including robust demand in orders, record levels of backlog, and we're very well positioned for the year.

對於利潤率，我們將伊頓的全年指引上調至 20% 至 20.4% 的範圍內，在中點處，比 2021 年提高 130 個基點。該領域的兩個變化包括提高對伊頓的利潤率指引Electric Americas 的中位數下降 70 個基點至 22.2%，並將我們的車輛利潤率目標下調 120 個基點至中點的 16.5%。正如我們所談到的，車輛減少確實反映了與我們之前討論的通脹與價格實現相關的時間和利潤壓縮。所以總的來說，我會說上半年強勁，包括強勁的訂單需求，創紀錄的積壓水平，我們今年的定位非常好。

Moving to Page 11. We show the balance of our guidance for the year. For the second time this year, we're raising our '22 guidance for adjusted EPS, which is now forecast to be between $7.36 and $7.76 a share. And as I covered on prior pages, we're increasing our organic growth outlook to 11% to 13%. I would note this is partially offset by $450 million of negative currency, which compares to our previous guidance of negative $250 million. The stronger dollar requires us to, in this case, offset some additional $0.08 of earnings versus our prior guidance, which we are clearly doing and is reflected in our outlook.

轉到第 11 頁。我們展示了本年度指導的餘額。今年第二次，我們提高了 22 年調整後每股收益的指引，現在預計每股收益在 7.36 美元至 7.76 美元之間。正如我在前幾頁所述，我們將有機增長前景提高到 11% 到 13%。我會注意到這被 4.5 億美元的負貨幣部分抵消，而我們之前的指導為負 2.5 億美元。在這種情況下，美元走強要求我們抵消一些額外的 0.08 美元收益，而不是我們之前的指導，我們顯然正在這樣做，並反映在我們的展望中。

We also expect that our corporate expenses will now be $20 million to $40 million above 2021 levels or between $580 million and $600 million. So another $0.04 to $0.08 headwind that we are offsetting in our adjusted EPS guidance for the year. And this is primarily due to higher interest expense and lower pension income.

我們還預計，我們的企業開支現在將比 2021 年的水平高出 2000 萬美元至 4000 萬美元，即 5.8 億美元至 6 億美元之間。因此，我們在今年調整後的每股收益指導中抵消了另一個 0.04 美元至 0.08 美元的逆風。這主要是由於較高的利息支出和較低的養老金收入。

So to recap, we're raising our adjusted EPS guidance by 4% -- by $0.04 despite between $0.12 to $0.16 of incremental headwinds from FX, interest and pension. The remainder of our full year guidance remains unchanged. And now just a few highlights on our Q3 guidance. We expect adjusted EPS to be between $1.95 and $2.05 per share, organic growth to be between 13% and 15%, and segment margins to be between 20.6% and 21%. And at the midpoint of our guidance, margins are expected to be up some 70 basis points from Q2. And at EPS midpoint of $2 a share, our Q3 guidance represents 14% growth versus prior year.

因此，回顧一下，我們將調整後的每股收益指引上調 4%——上調 0.04 美元，儘管來自外匯、利息和養老金的增量逆風在 0.12 美元至 0.16 美元之間。我們全年指導的其餘部分保持不變。現在只是我們第三季度指導的一些亮點。我們預計調整後的每股收益在 1.95 美元到 2.05 美元之間，有機增長在 13% 到 15% 之間，分部利潤率在 20.6% 到 21% 之間。在我們指導的中點，預計利潤率將比第二季度增加約 70 個基點。以每股 2 美元的每股收益中值計算，我們的第三季度指引與去年同期相比增長 14%。

So just wrapping up on Page 12, just to recap a few points. First, I'd say we continue to realize the benefits of our active portfolio management, which is certainly showing up in our record levels of financial performance. Second, we're seeing secular trends that are enhancing our end market growth rate now, and we fully expect this to continue into the future. We've discussed growth in electrification and energy transition and digitalization for some time now. And these trends, really, I'd say, have only accelerated.

總結一下第 12 頁，總結幾點。首先，我想說我們繼續意識到我們積極的投資組合管理的好處，這肯定會體現在我們創紀錄的財務業績水平上。其次，我們現在看到的長期趨勢正在提高我們的終端市場增長率，我們完全預計這種趨勢將持續到未來。一段時間以來，我們已經討論了電氣化、能源轉型和數字化的增長。而這些趨勢，真的，我想說，只是加速了。

So despite all the talk about a potential slowdown and downturn in the market, and we'll be ready if we have one, we're focused on investing to capitalize on what we see as the super growth cycle, driven by favorable trends and the recovery in some of our other end markets. So every time you hear sustainability, climate change and resiliency, you're really hearing about growth opportunities for our company that we're capitalizing on today and will be for the foreseeable future. And this is certainly showing up in our sales results, our orders and our backlog, which are all at record levels.

因此，儘管所有關於市場潛在放緩和低迷的討論，如果我們有一個，我們會做好準備，我們專注於投資，以利用我們認為的超級增長周期，由有利的趨勢和我們其他一些終端市場的複蘇。因此，每次您聽到可持續性、氣候變化和彈性時，您都會真正聽到我們公司正在利用的增長機會，這些機會將在可預見的未來出現。這肯定會體現在我們的銷售業績、訂單和積壓訂單中，這些都達到了創紀錄的水平。

Now these factors obviously contribute to our confidence in our ability to raise guidance for the year. But more importantly, I'd say they really give us confidence in the long-term outlook for the company. In the short term, we're working through supply chain disruptions, focusing on controlling the things that we can control, building more resilience in our operations and delivering our commitments. So with that, I'll turn it back to Yan, and we'll open it up for Q&A.

現在，這些因素顯然有助於我們對提高今年指導的能力的信心。但更重要的是，我想說它們確實讓我們對公司的長期前景充滿信心。在短期內，我們正在應對供應鏈中斷，專注於控制我們可以控制的事情，在我們的運營中建立更多的彈性並履行我們的承諾。因此，我將把它轉回給 Yan，我們將打開它進行問答。

Okay. Good. Thanks, Craig. (Operator Instructions) With that, I will turn it to the operator to give you guys the instruction.

好的。好的。謝謝，克雷格。 （操作員說明）有了這個，我將它交給操作員給你們指導。

(Operator Instructions) And our first question will come from the line of Andrew Obin from Bank of America.

（操作員說明）我們的第一個問題將來自美國銀行的 Andrew Obin。

So yes, a question for Craig. The view among investors, right or wrong, is that we will see an economic downturn soon. So how would Eaton's Electrical incremental margins perform in an environment where the majority of revenue growth is from pricing versus sort of more normal periods was balance of volume and price contribution?

所以，是的，克雷格的問題。無論對錯，投資者的看法是，我們將很快看到經濟下滑。那麼，在收入增長主要來自定價而非更正常時期是數量和價格貢獻平衡的環境中，伊頓的電氣增量利潤率將如何表現？

Appreciate the question, Andrew. And I'd say the first of all, in general terms, in our company, we've always performed well in an economic downturn. And we know how to do a few things well. And certainly, one of those is we know how to flex the company in the event of an economic downturn, and we typically perform much better from a decremental basis than we do, certainly on an incremental basis. And in a typical recession, we would see some 20% to 25% decremental performance in our business.

欣賞這個問題，安德魯。首先我想說的是，總的來說，在我們公司，我們在經濟低迷時期一直表現良好。我們知道如何做好一些事情。當然，其中之一是我們知道如何在經濟低迷的情況下靈活調整公司，而且我們通常在遞減的基礎上比我們在遞增的基礎上表現要好得多。在典型的經濟衰退中，我們的業務會出現 20% 到 25% 的業績下滑。

And I don't think that our Electrical business will be largely different than that. I think that, at this point, as I mentioned, we're not anticipating a reduction in growth in our business. Even in the event of a typical mild recession, we think our company and certainly our Electrical business will continue to grow. You saw some of those order numbers, the backlog numbers that we talked about, our negotiation pipeline has never been stronger.

而且我認為我們的電氣業務不會有很大不同。我認為，在這一點上，正如我所提到的，我們預計我們的業務增長不會減少。即使發生典型的溫和衰退，我們認為我們的公司，當然還有我們的電氣業務將繼續增長。您看到了其中一些訂單號，我們談到的積壓訂單號，我們的談判渠道從未如此強大。

And so we think that the company overall as a result of a lot of the portfolio-related changes that we've made as a result of these secular growth trends performs well in the -- even in the event of an economic downturn. But if there is one, we have a playbook. We understand what we need to do in the event of an economic slowdown that impacts our revenue. We have projects identified ready to go if we end up in that scenario, but that is certainly not our base case. But I'd say you could think about 20% to 25% decrementals in the event of a slowdown, a material slowdown.

因此，我們認為，由於我們因這些長期增長趨勢而做出的許多與投資組合相關的變化，公司整體表現良好——即使在經濟低迷的情況下也是如此。但如果有的話，我們就有一本劇本。我們了解在影響我們收入的經濟放緩的情況下我們需要做什麼。如果我們最終陷入這種情況，我們已經確定了可以開始實施的項目，但這肯定不是我們的基本情況。但我想說，如果出現經濟放緩、實質性放緩，您可以考慮 20% 到 25% 的遞減量。

Great. Appreciate it. And then just a follow-up, maybe just speaks why you're confident, but can we just get your initial view on Senator Manchin news and potential additional $370 billion on spend on energy security? Like how meaningful could this be for Eaton's end market? And more broadly, have you started to see orders tied to U.S. and the U.S. stimulus bills, which both have sizable energy infrastructure spending levels?

偉大的。欣賞它。然後只是一個跟進，也許只是說明你為什麼有信心，但我們能否得到你對參議員曼欽新聞的初步看法，以及潛在的 3700 億美元用於能源安全的額外支出？這對伊頓的終端市場有多大意義？更廣泛地說，您是否開始看到與美國和美國刺激法案相關的訂單，這兩個法案都有相當大的能源基礎設施支出水平？

Yes. I mean I'd say the compromise that Manchin and the other members of the -- certainly, House have come up with at this point would be certainly positive for our company. If you think about where those dollars are going to go in, whether it's energy transition, whether it's related to EVs, whether it's related to building out some of our critical infrastructure, water, wastewater, airports, I mean, it is certainly a net positive for our company overall. And I'd say that at this juncture, we've not factored obviously any of that in. That becomes naturally an additional tailwind for the company.

是的。我的意思是，我想說 Manchin 和其他成員 - 當然，House 在這一點上提出的妥協對我們公司來說肯定是積極的。如果您考慮這些資金將用於何處，是否是能源轉型，是否與電動汽車有關，是否與建設我們的一些關鍵基礎設施、水、廢水、機場有關，我的意思是，它肯定是一個網絡對我們公司整體來說是積極的。我想說的是，在這個關鍵時刻，我們顯然沒有將任何因素考慮在內。這自然成為公司的額外順風。

All of these spending bills obviously need to go through the final approvals and ultimately be signed off on by the President. But I'd say from a timing standpoint, that really becomes largely a '23, '24 kind of tailwind for the company overall as are most of the stimulus-related projects. Very seldom do you have a stimulus bill approved that results in any near-term impact on revenue, but it's certainly all very positive for the long-term growth outlook, especially in our Electrical business where we'll see most of these benefits.

所有這些支出法案顯然都需要經過最終批准並最終由總統簽署。但我想說的是，從時間的角度來看，這在很大程度上成為了公司整體的 23、24 種順風，就像大多數與刺激相關的項目一樣。很少有刺激法案獲得批准，會對收入產生任何短期影響，但這對長期增長前景肯定是非常積極的，特別是在我們將看到大部分這些好處的電氣業務中。

And any impact from what's been passed already? Are you starting to see it in the numbers? Or is just robust numbers reflect a lot of it already?

已經過去的事情有什麼影響嗎？您是否開始在數字中看到它？還是只是穩健的數字已經反映了很多？

Yes. No, I'd say at this juncture, on the margin, there have been some minor projects, I'd say, Andrew, that we've seen some benefit from. But most of this stuff, I'd say, maybe you get something in the fourth quarter, minor, but you don't really get to any material impact from most of these stimulus measures until you really get into '23 and some of them actually extend out into '24, depending upon the type of project and the lead time. But all positive, all net positive for the company.

是的。不，我想說，在這個關頭，在邊緣，有一些小項目，我想說，安德魯，我們已經看到了一些好處。但是我想說，這些東西中的大部分，也許你在第四季度得到了一些東西，輕微的，但在你真正進入 23 年和其中一些之前，你並沒有真正從這些刺激措施中獲得任何實質性影響實際上延伸到'24，取決於項目的類型和交貨時間。但對公司來說都是積極的，都是淨積極的。

The next question is from Nigel Coe from Wolfe Research.

下一個問題來自 Wolfe Research 的 Nigel Coe。

This is Ryan Cooke on for Nigel. So just expanding more on the Electrical Americas segment. Could you just talk a little bit about what might have changed during the quarter? Have you seen improvements in supply chain bottlenecks or factory labor productivity?

這是奈傑爾的瑞安庫克。因此，只需在美國電氣領域進行更多擴展。您能否談談本季度可能發生的變化？您是否看到供應鏈瓶頸或工廠勞動生產率有所改善？

Yes. I'd say that really strong quarter, as we talked about in our Electrical Americas segment. And I'd say that with respect to supply chain, we had been very constrained really across the board. And during the course of the quarter, certainly, some of the important commodities for us, whether it's copper, steel, aluminum, some of the logistics and supply chain-related issues that we've been dealing with during the course of the year have gotten materially better. We still have pretty significant issues when it comes to electronic components and anything that's semiconductor based.

是的。正如我們在美國電氣部門所討論的那樣，我會說這個季度非常強勁。我想說的是，在供應鏈方面，我們一直受到非常全面的限制。當然，在本季度，對我們來說一些重要的商品，無論是銅、鋼、鋁，以及我們在這一年中一直在處理的一些物流和供應鏈相關問題都有在物質上變得更好。當涉及到電子元件和任何基於半導體的東西時，我們仍然存在相當大的問題。

And so we're certainly not out of the woods there. We do expect to see some modest improvement in the second half of the year, but really likely going to be sometime into the latter part of '23 before most of those issues resolve themselves. And so I'd say that in the Americas business, the big message here is that our end markets are very strong across the board, and it's the growth in our end markets that it's allowing our business to perform as well as it is.

所以我們當然還沒有走出困境。我們確實希望在今年下半年看到一些適度的改善，但在大多數問題自行解決之前，很可能會在 23 年下半年的某個時候出現。所以我想說的是，在美洲業務中，這裡的重要信息是我們的終端市場非常強大，正是終端市場的增長讓我們的業務表現得和現在一樣好。

Okay. That's great. And then just shifting gears for my follow-up on the Aerospace segment. Could you just dig into a little more looking at the growth in commercial versus military and OEM versus aftermarket? I know that you mentioned an uptick in defense spending over the next few years. So I guess just touching on that and any other supply constraints that we should be thinking of in the back end of the year.

好的。那太棒了。然後只是為我在航空航天領域的後續行動換檔。您能否深入研究一下商業與軍用以及 OEM 與售後市場的增長？我知道你提到了未來幾年國防開支的增加。因此，我想只是觸及這一點以及我們應該在今年年底考慮的任何其他供應限制。

First of all, I'd say that just as you think about our Aerospace business with the acquisition of Cobham, we're now balanced about 50-50 between commercial and defense. As we talked about in some of my outbound commentary, we're seeing a very strong recovery on the commercial side of the business, both in the aftermarket as well as in the OEM side. And so -- but still, as I mentioned, well below pre-COVID levels that we experienced back in 2019. And so we still have a long way to go on the commercial side, but those businesses in those markets are performing well, and we expect to see them continue to recover over the next few years or so.

首先，我想說的是，正如您通過收購 Cobham 來考慮我們的航空航天業務一樣，我們現在在商業和國防之間取得了大約 50-50 的平衡。正如我們在我的一些對外評論中談到的那樣，我們看到了業務的商業方面非常強勁的複蘇，無論是在售後市場還是在 OEM 方面。所以——但正如我所提到的，仍然遠低於我們在 2019 年經歷的 COVID 之前的水平。所以我們在商業方面還有很長的路要走，但這些市場中的業務表現良好，並且我們希望看到它們在未來幾年左右繼續復甦。

And on the defense side, we really come into the year with an expectation of those markets being flat to up slightly. And quite frankly, with some of the conflicts that are happening around the world, we've already seen, certainly, the Europeans commit to increasing their defense spending. We saw a defense budget in the U.S. come in higher than what was originally anticipated. So we do believe that even on the defense side of the equation, that we think that the defense markets will grow more favorably over the next few years than we were thinking certainly coming into the year.

而在防守端，我們真的帶著對這些市場持平到小幅上漲的預期進入了這一年。坦率地說，隨著世界各地發生的一些衝突，我們當然已經看到歐洲人承諾增加國防開支。我們看到美國的國防預算高於最初的預期。因此，我們確實相信，即使在等式的國防方面，我們認為未來幾年國防市場的增長將比我們認為的今年肯定要好。

And so I think Aerospace is another one of these businesses that's really poised for, let's say, cyclical growth on the commercial side. And given some of the geopolitical challenges in the world, defense spending is likely to go up around the world. And so we're feeling very good about the way we're positioned in Aerospace, and I think that's going to be an attractive market for us for some years to come.

因此，我認為航空航天是這些業務中的另一項，可以說是商業方面的周期性增長。鑑於世界上的一些地緣政治挑戰，世界各地的國防開支可能會增加。所以我們對我們在航空航天領域的定位感覺非常好，我認為這將是未來幾年對我們來說有吸引力的市場。

And our next question is from the line of Scott Davis from Melius Research.

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

It all sounds super positive, in fact, almost too positive. I have to ask the question, is there -- do you have a sense of where inventories are at in each of your key end markets? And if there's a little bit of a buildup going on there?

這一切聽起來都非常積極，事實上，幾乎太積極了。我必須問一個問題，您是否了解每個主要終端市場的庫存狀況？如果那裡有一點點積聚？

Yes. I mean I could certainly appreciate kind of the thought, Scott, that it all feels positive, in some cases, too positive. We want to pinch ourselves sometimes as well because, I mean, with the facts and the data would suggest that things are good right now. I mean as you heard, as I talked about, the strength in our orders across the board in our Electrical business, and then you factor on top of that a cyclical recovery in aerospace, higher defense spending given the geopolitical events and quite frankly, even in the vehicle market, given the level of inventory, you mentioned a question around inventory.

是的。我的意思是我當然可以欣賞這種想法，斯科特，這一切都讓人感覺很積極，在某些情況下，太積極了。我們有時也想掐自己一下，因為，我的意思是，事實和數據表明現在情況很好。我的意思是，正如你所聽到的，正如我所說的，我們在電氣業務中全面訂單的實力，然後你考慮到航空航天的周期性複蘇，考慮到地緣政治事件的更高國防支出，坦率地說，甚至在汽車市場，鑑於庫存水平，您提到了一個關於庫存的問題。

Inventory levels in the passenger car market around the world are at historically low levels. And so even in the event of an economic slowdown, you have to rebuild inventories in the channel. And certainly, there's a lot of rebuilding that needs to take place in global vehicle markets around the world. Then you have eMobility, which is a real growth vector for the company that's just starting to become a more material part of the organization. And so we have a little -- we have a lot of really positive things going for the organization.

全球乘用車市場的庫存水平處於歷史低位。因此，即使在經濟放緩的情況下，您也必須重建渠道中的庫存。當然，全球汽車市場需要進行大量重建工作。然後你就有了 eMobility，它是公司真正的增長載體，它剛剛開始成為組織中更重要的一部分。所以我們有一點——我們有很多對組織來說非常積極的事情。

To the specific question on inventory in the channel, that's probably likely an Electrical question. I'd say there, we test for that as well because we're obviously concerned about is there inventory being built up in the channel. ?Is there double ordering taking place? And every time we test for it, the answer comes back the same, not at all the case. And in fact, the channel today doesn't have as much inventory as they'd like, especially in products like circuit breakers.

對於渠道庫存的具體問題，很可能是電氣問題。我會說，我們也對此進行測試，因為我們顯然擔心渠道中是否存在庫存。 ？是否有雙重訂購？每次我們測試它時，答案都是一樣的，完全不是這樣。事實上，今天的渠道沒有他們想要的那麼多庫存，尤其是在斷路器等產品中。

We'll oftentimes answer this question around double ordering. Keep in mind that in our Electrical business that 75% of what we do in Electrical is project based. I mean it's -- nobody goes out and replaces their electrical circuit breakers or their panel boards because there's a new color coming out, right? So it's all tied to a project that our distributors and customers are ordering products for. And so we have a lot of confidence that the backlog, up some 89% in the Americas, is solid.

我們經常會圍繞雙重排序來回答這個問題。請記住，在我們的電氣業務中，我們在電氣業務中所做的 75% 都是基於項目的。我的意思是——沒有人出去更換他們的電路斷路器或面板，因為有一種新的顏色出來了，對吧？因此，這一切都與我們的分銷商和客戶訂購產品的項目有關。因此，我們非常有信心，在美洲增加約 89% 的積壓訂單是穩固的。

We do -- we would expect a slowdown. I mean you can't continue to grow at these levels for an indefinite period. And the base effect, obviously, you can be comping some much bigger numbers as we move forward and into next year. But the markets are actually quite good right now.

我們這樣做 - 我們預計會放緩。我的意思是你不能無限期地在這些水平上繼續增長。顯然，隨著我們前進和進入明年，你可以計算出一些更大的數字。但現在市場實際上相當不錯。

Yes. And Scott, just to add a little bit more color to that pinch-me story. I mean if you look in the Electrical business in both sales as well as orders, every single one of our end markets was up significantly. And within those end markets, some of them growing significantly more. So it's really strength across the board.

是的。還有斯科特，只是為了給那個捏我的故事增添一點色彩。我的意思是，如果您在銷售和訂單方面查看電氣業務，我們的每一個終端市場都顯著上升。在這些終端市場中，其中一些增長明顯更多。因此，這確實是全面的實力。

The next question is from the line of Josh Pokrzywinski from Morgan Stanley.

下一個問題來自摩根士丹利的 Josh Pokrzywinski。

Craig, just wanted to ask about Electrical Americas' margins. They're pretty impressive here, and I would presume still kind of primed for help from metals deflation maybe later this year or into next year. Where should we think about as sort of the ceiling on those maybe over the next kind of 12, 18 months? Or maybe said differently, how high are you willing to let those go before you start kind of really putting the pedal to the foreign reinvestment?

克雷格，只是想問一下美國電氣公司的利潤。它們在這里相當令人印象深刻，我認為可能在今年晚些時候或明年可能仍會從金屬通貨緊縮中尋求幫助。我們應該在哪裡考慮可能在接下來的 12 個月、18 個月內的上限？或者換一種說法，在你開始真正踏上外國再投資的步伐之前，你願意放手多高？

Yes. No, I'd say that we are reinvesting today. I mean we take the second end of that question first, and we are absolutely reinvesting in the business and reinvesting at a rate that's higher than we've ever invested. Our R&D spending was up in the quarter quite materially and we'll continue to invest. And so we are not in any way holding back on investments. As you think about -- we talk about the really important secular growth trends that we're looking in the face of energy transition, digitalization, electrification, every one of these initiatives requires R&D. We're investing in capitalizing and building new factories to support this growth outlook that we have. And so we're clearly investing in the business.

是的。不，我會說我們今天在進行再投資。我的意思是我們首先考慮這個問題的第二個結尾，我們絕對是在對業務進行再投資，並以高於我們以往投資的速度進行再投資。我們的研發支出在本季度大幅增長，我們將繼續投資。因此，我們絕不會阻礙投資。正如您所想的那樣——我們談論的是面對能源轉型、數字化、電氣化的真正重要的長期增長趨勢，這些舉措中的每一項都需要研發。我們正在投資資本化和建設新工廠，以支持我們擁有的這種增長前景。所以我們顯然是在投資這項業務。

To the point on margins and how high can they go and when do we become concerned, I'd say that we've set long-term margin targets for the business. And what we've done historically, our practice is you deliver those targets and then you think about the next raise. And so I'd say at this point, once we get to that plateau and consistently deliver these longer-term targets, which I believe we said were 22% for the Electrical Americas business, I mean, we'll then as we took -- we do every year, as we think about it in our investor meeting, we'll take a look at whether or not it's appropriate to raise those numbers.

關於利潤率以及利潤率可以達到多高以及我們何時開始關注，我想說我們已經為業務設定了長期利潤率目標。而我們在歷史上所做的，我們的做法是你實現了這些目標，然後你考慮下一次加薪。所以我現在要說，一旦我們到達那個高原並持續實現這些長期目標，我相信我們所說的對於美國電氣業務來說是 22%，我的意思是，我們將按照我們的要求 - - 我們每年都會這樣做，正如我們在投資者會議上考慮的那樣，我們會看看提高這些數字是否合適。

But I would say that the -- if you think about even our execution performance today, we have a lot of inefficiencies that we're absorbing today in the business. As you can manage some of these supply chain issues have created fairly significant disruptions in our plants and our facilities. And so we're not operating today anywhere close to our peak efficiency. And so there is room to raise margins by disimproving our execution, working through some of these supply chain issues and getting some of the inefficiencies out. So I'd say that we're not near the top in terms of controlling our own destiny, independent of what happens in the marketplace.

但我想說的是——如果你考慮一下我們今天的執行表現，我們今天在業務中吸收了很多效率低下的問題。正如您可以管理的那樣，其中一些供應鏈問題已經對我們的工廠和設施造成了相當大的破壞。因此，我們今天的運營沒有接近我們的最高效率。因此，通過改善我們的執行、解決其中一些供應鏈問題並消除一些低效率問題，我們有提高利潤率的空間。所以我想說，我們在控制自己的命運方面並不接近頂峰，而與市場上發生的事情無關。

Yes. Just one nuance on investment. We're also -- in addition to R&D, we're investing in selling resources as well. And to the doing better, I mean, if you look at our distribution, our freight, we're doing a lot less than truckload because of our supply disruption. So definitely can get a lot better.

是的。只是投資的一個細微差別。除了研發，我們還在投資銷售資源。為了做得更好，我的意思是，如果你看看我們的分銷和貨運，由於我們的供應中斷，我們的工作量比卡車裝載少得多。所以肯定會好很多。

Got it. That's helpful. And then hard not to notice that on the orders front, you guys have sort of comped the comp at this point in terms of that big step-up in the order comps kind of post pandemic. Attributable to any specific end markets, you kind of mentioned pretty broad-based growth, but trying to tease out if there's any specific market that kind of drove that performance versus the comp or if price played kind of an unusual role.

知道了。這很有幫助。然後很難不注意到，在訂單方面，你們在這一點上已經在大流行後的訂單補償方面有了很大的提升。歸因於任何特定的終端市場，你提到了相當廣泛的增長，但試圖梳理出是否有任何特定的市場可以推動這種表現與競爭，或者價格是否起到了不尋常的作用。

I'd say that on the order side, these big numbers that we're talking about, and we'd love to think that we're getting 25% to 30% price, but trust me, it's nowhere close to those numbers. And so this is just real economic activity. It's real volume in the order growth. And as we talked about, really strong order growth in data centers, really strong order growth in the utility markets, really strong order growth in many cases even in commercial, which is a segment that people were concerned about.

我想說的是，在訂單方面，我們正在談論的這些大數字，我們很樂意認為我們正在獲得 25% 到 30% 的價格，但相信我，它與這些數字相去甚遠。所以這只是真正的經濟活動。這是訂單增長的真實數量。正如我們所談到的，數據中心的訂單增長非常強勁，公用事業市場的訂單增長非常強勁，在許多情況下甚至在商業領域的訂單增長也非常強勁，這是人們關注的一個領域。

Residential as well.

住宅亦然。

Yes. And even resi. I mean in resi, at some point, will turn. But despite all of the gloom and doom that's been forecasted in resi, we had very strong orders and very strong sales growth in the quarter in resi as well.

是的。甚至雷西。我的意思是，在某個時候，會轉向。但是，儘管 Resi 預測的所有悲觀和厄運，我們在本季度的 Resi 訂單和銷售增長都非常強勁。

The next question is from John Walsh from Credit Suisse.

下一個問題來自瑞士信貸的約翰沃爾什。

I wanted to build on that Electrical Americas line of questioning. Just trying to conceptualize what backlog up 89% year-over-year really means. Kind of how much of that gives you visibility already into next year. I've always thought of that as kind of a shorter cycle. And then maybe just anything around what the price looks like in that backlog because I would assume that's going to be a margin tailwind as you deliver it.

我想建立在美國電氣問題的基礎上。只是試圖概念化積壓同比增長 89% 的真正含義。其中有多少可以讓你看到明年。我一直認為這是一個較短的周期。然後可能只是該積壓訂單中價格的樣子，因為我認為這將是您交付時的利潤順風。

No, I appreciate the question. I mean it's 89% increase in the backlog, we think, is a reflection. As we talked about, clearly, we have strong markets. The other thing that we believe and we've seen evidence that's taking place is that probably, we're not getting orders that we would not have gotten otherwise. But we're probably getting orders today a little earlier in the project than we would historically receive them.

不，我很欣賞這個問題。我的意思是，我們認為積壓工作增加了 89%，這是一種反映。正如我們所說，顯然，我們擁有強大的市場。我們相信並且我們已經看到正在發生的證據的另一件事是，我們可能沒有收到我們不會收到的訂單。但我們今天在項目中收到的訂單可能比我們以往收到的訂單要早一些。

So I do believe some of this backlog is a function of the fact that you're going to get that order in October, if that order maybe you're getting now in September. So the orders are coming in a little earlier than they would have. But it is good news in terms of visibility. I mean it certainly gives us -- it's certainly visibility into projects and gives us a lot more confidence as we think about 2023. And to your point, a lot of these projects will be delivered in 2023. Even if we wanted to deliver them this year, we don't have the capacity in our operations to do it.

因此，我確實相信這些積壓的部分原因是您將在 10 月收到該訂單，如果您現在可能在 9 月收到該訂單。所以訂單來得比他們本來的要早一點。但就知名度而言，這是個好消息。我的意思是它確實給了我們——它肯定是對項目的可見性，讓我們在考慮 2023 年時更有信心。就你的觀點而言，很多這些項目將在 2023 年交付。即使我們想交付它們年，我們沒有能力在我們的運營中做到這一點。

And so we do have perhaps better visibility than we've ever had going into 2023 at this point in the year. And to the question on price, I don't expect the price in the backlog to have a material impact on margins. I think reflected in our margin guidance is very much consistent with the underlying margin performance that we're seeing in the business today. You saw we posted a very strong number in the second quarter of 23-plus percent in the Americas segment.

因此，我們的能見度可能比今年這個時候進入 2023 年的任何時候都要好。對於價格問題，我預計積壓訂單中的價格不會對利潤率產生重大影響。我認為反映在我們的利潤率指導中與我們今天在業務中看到的基本利潤率表現非常一致。你看到我們在第二季度發布了一個非常強勁的數字，美洲市場增長了 23% 以上。

So I would not expect this backlog to be delivering accretive margins to kind of the underlying assumptions that we have, even in the implied number, 22.7%, 22.8% in the second half of the year. But in many cases, we have had to go out and reprice the backlog. And that's part of -- one of the things that we're certainly seeing the benefit of today or certainly not seeing a drag on margins as a result of commodity versus price.

因此，我不認為這種積壓工作會為我們所擁有的基本假設帶來增長的利潤率，即使是在下半年的隱含數字中，22.7% 和 22.8% 也是如此。但在許多情況下，我們不得不走出去為積壓的訂單重新定價。這就是我們今天肯定看到的好處之一，或者肯定沒有看到由於商品與價格的關係而拖累利潤率。

And the next question is from Joe Ritchie from Goldman Sachs.

下一個問題來自高盛的喬·里奇。

Yes. So maybe just parsing out those price/volume comments a little bit. How much of the organic growth this quarter was price? And then, Craig, as you kind of think about the second half of the year and the impact that price/cost has to the business, like how -- what kind of like positive impact are you expecting to see either on a dollar basis or from a margin perspective versus the first half?

是的。所以也許只是稍微分析一下這些價格/數量評論。本季度的有機增長中有多少是價格？然後，克雷格，當你想一想今年下半年以及價格/成本對業務的影響時，比如如何——你期望看到什麼樣的積極影響？從利潤率的角度來看與上半年？

I appreciate the question, and we've been asked this one before in terms of really separating price versus volume. And Joe, one of the things we said is that because we're in so many different businesses and so many of our different businesses have really different makeups that we've not given out a number, and we're not going to do that today either in terms of price versus volume. I will tell you that we are getting significant contributions from both certainly in our results as well as in our order outlook.

我很欣賞這個問題，我們以前曾被問過這個問題，即真正區分價格與數量。喬，我們說過的一件事是，因為我們從事許多不同的業務，而且我們許多不同的業務有非常不同的構成，我們沒有給出一個數字，我們不會那樣做今天無論是價格還是數量。我會告訴你，我們的業績和訂單前景都對我們做出了重大貢獻。

And I'd say in terms of price versus cost, I'd say today, if you think about it on an all-in basis, we are now as a company on the plus side, which I mentioned in my commentary. And some of our businesses, we still have some work to do to catch up, as we mentioned, in the Vehicle business where today, we are recovering inflation. For the most part, we're not getting margin on inflation. And as a result, it's compressing our return on sales. So -- and I'd say as we look forward, we would not expect price versus commodities to basically be -- have a positive impact on our overall segment margins.

我想說的是，就價格與成本而言，我今天想說，如果你全面考慮，我們現在是一家有利的公司，我在評論中提到了這一點。正如我們所提到的，在我們的一些業務中，我們仍有一些工作要做才能趕上，在今天我們正在恢復通貨膨脹的車輛業務中。在大多數情況下，我們沒有從通貨膨脹中獲得利潤。結果，它壓縮了我們的銷售回報。所以——我想說，在我們向前看的時候，我們預計價格與商品的關係基本上不會對我們的整體細分市場利潤率產生積極影響。

Okay. Helpful, Craig. And just my quick follow-on question since no one's asked it, like the demand trends have all sounded really good. Clearly, there's a lot of concern around Europe. And so I'm just wondering, just on the margin, can you maybe provide some additional color on what you're seeing specifically across your end markets in Europe?

好的。有幫助，克雷格。只是我的快速後續問題，因為沒有人問它，就像需求趨勢聽起來都非常好。顯然，歐洲有很多擔憂。所以我只是想知道，就在邊緣，你能否提供一些額外的顏色來說明你在歐洲終端市場上所看到的具體情況？

Yes. And I appreciate the question. And I can say we're certainly watching all of the same macro issues. We're watching, obviously, the impact that the war in Ukraine is having and concerned about what that could potentially do to demand. Having said that, we had a good quarter in Europe, both in our sales as well as in our orders, which continue to be quite strong through Q2 every place, I'd say, in markets other than perhaps in our Vehicle business, which is where I mentioned that our sales were essentially flat.

是的。我很欣賞這個問題。我可以說我們當然在關注所有相同的宏觀問題。顯然，我們正在關注烏克蘭戰爭正在產生的影響，並擔心這可能會對需求產生什麼影響。話雖如此，我們在歐洲的銷售和訂單都表現不錯，到第二季度每個地方都繼續保持強勁勢頭，我想說的是，除了我們的汽車業務以外的市場，是我提到我們的銷售額基本持平的地方。

But outside of the Vehicle business, Europe for us, continues to perform well and hold up better than what you would expect, given all of the issues that they're dealing with. And so we remain, quite frankly, optimistic about Europe as we look forward. We're going to be prepared, like we always are, in the event that things turn down. But so far, orders continue to hang in there. And as I mentioned, the strength in the electrical markets. We're seeing strength every place in these end markets. It's not just in the Americas. We're seeing the same types of strength in Europe as well, in data centers, in commercial markets, these markets are strong there as well.

但在車輛業務之外，考慮到他們正在處理的所有問題，對我們而言，歐洲繼續表現良好並且比您預期的要好。因此，坦率地說，我們在展望未來時仍然對歐洲持樂觀態度。我們會像往常一樣做好準備，以防萬一出現問題。但到目前為止，訂單仍在繼續。正如我所提到的，電力市場的實力。我們在這些終端市場的每個地方都看到了實力。這不僅僅是在美洲。我們在歐洲也看到了同樣的實力，在數據中心，在商業市場，這些市場在那裡也很強大。

And the next question is from Stephen Volkmann from Jefferies.

下一個問題來自 Jefferies 的 Stephen Volkmann。

Just a couple of end market questions from me as well. Can you just give us a little color on what you're seeing in sort of the real heavy industrial Crouse-Hinds kind of harsh and hazardous type end markets?

我也提出了幾個終端市場問題。您能否就您在真正的重工業 Crouse-Hinds 那種嚴酷和危險的終端市場中看到的情況給我們一點顏色？

Yes. I mean those markets are doing well. And we talk about what's happening in our global business, and that's where we report Crouse-Hinds and oil and gas, industrial. And Crouse-Hinds business is performing very well. I mean I would tell you that we're still well below the peak in that business if you think back to what took place back in the '08, '09 time frame. And so those markets, I'd say, are still below those levels, but we're certainly seeing strong double-digit growth in that side of the business as well.

是的。我的意思是這些市場表現良好。我們談論我們的全球業務中正在發生的事情，這就是我們報告 Crouse-Hinds 和石油和天然氣，工業的地方。 Crouse-Hinds 的業務表現非常好。我的意思是我會告訴你，如果你回想一下 08 年、09 年時間框架內發生的事情，我們仍遠低於該業務的高峰期。因此，我想說，這些市場仍低於這些水平，但我們當然也看到了該業務的強勁兩位數增長。

And we would expect to see that continue for some time to come, given the broader issues that we're dealing with, the macro issues and the availability of reliable sources of energy, whether that comes from some of the renewables or whether that comes from more traditional sources, I think the reality is, as we think about the implications of what's happening today in Europe, we're going to see more investment on both sides. We're going to see more investment in renewables. We're going to see more investment in more traditional sources of energy, and both of those are good things for the growth outlook for our industrial businesses and specifically to our Crouse-Hinds business.

鑑於我們正在處理的更廣泛的問題、宏觀問題和可靠能源的可用性，無論是來自一些可再生能源還是來自更傳統的來源，我認為現實是，當我們考慮當今歐洲正在發生的事情的影響時，我們將看到雙方都有更多的投資。我們將看到更多對可再生能源的投資。我們將看到對更傳統能源的更多投資，這對我們的工業業務，特別是對我們的 Crouse-Hinds 業務的增長前景來說都是好事。

Yes. Crouse is another one of our businesses that it's just broad across the board as well. If you look at all of our end markets, up significantly in sales this quarter.

是的。 Crouse 是我們的另一項業務，它也很廣泛。如果你看看我們所有的終端市場，本季度的銷售額顯著增長。

Super. And then on data centers, I assume that's one where you have a little bit more lead time visibility as well. Anything to call out there relative to sort of size of the data centers or locations? Or just anything to call out.

極好的。然後在數據中心，我認為這也是您擁有更多交付時間可見性的地方。相對於數據中心或位置的大小，有什麼需要注意的嗎？或者只是任何可以呼喚的東西。

No, no, other than to say that data center markets continue to be very strong. I'd say if we take a look at our order growth specifically, our order growth on a rolling 12-month basis in data centers was up some 25% in the quarter. And we're really seeing strength everywhere around the world in data centers. And so I mean, it's one of these markets that we think is going to be really positive for the company.

不，不，只是說數據中心市場仍然非常強勁。我想說，如果我們具體看一下我們的訂單增長，我們在數據中心的訂單增長連續 12 個月在本季度增長了約 25%。我們真的看到了世界各地數據中心的實力。所以我的意思是，這是我們認為對公司真正有利的市場之一。

It's -- I think on a current basis, it's maybe some 18%, 19% of the business. Our Electrical business comes from data centers, and so it's an important segment for us overall. And it's one that just continues to grow. And I personally believe, as the world just continues to consume increasing amounts of data as, there's more edge computing and autonomous vehicles, I think the data center is one of these markets that's going to be a very attractive market for some time to come.

這是 - 我認為在目前的基礎上，它可能佔業務的 18%、19%。我們的電氣業務來自數據中心，因此它對我們整體來說是一個重要的部分。而且它還在繼續增長。我個人認為，隨著世界繼續消耗越來越多的數據，因為邊緣計算和自動駕駛汽車越來越多，我認為數據中心是這些市場之一，在未來一段時間內將成為一個非常有吸引力的市場。

Our next question is from Julian Mitchell from Barclays.

我們的下一個問題來自巴克萊的 Julian Mitchell。

Maybe just a first question perhaps for Tom. Just to try and understand the free cash flow here. Because I think the guidance at the midpoint implies a sort of 70%, 80% increase year-on-year in the second half to hit the free cash flow guide. Maybe just help us sort of bridge that, how much you're attributing to sort of earnings versus -- underlying earnings versus working capital versus any sort of onetime repeats or nonrepeats just to try and bridge that big increase.

也許只是湯姆的第一個問題。只是為了嘗試了解這裡的自由現金流。因為我認為中點的指導意味著下半年同比增長 70%、80% 以達到自由現金流指導。也許只是幫助我們在某種程度上彌合了這一點，即您將多少歸因於某種收益與-基本收益與營運資本與任何類型的一次性重複或非重複，只是為了嘗試彌合這一巨大增長。

Sure. Thanks for the question, Julian. First of all, let me take a step back and look at our cash conversion cycle. The DSO was slightly favorable. DPO was favorable. Where we've really made an investment is in our inventory, our days on hand. And this is an intentional choice to make sure that we are protecting the significant growth that we've been talking about on the call as well as being prepared for our customers with the choppiness as it relates to the supply disruption. As it relates to the second half versus the first half, historically, we generate significantly more free cash flow in the second half of the year than we do in the first half. So we think the second half is going to get better, and we feel comfortable with our guide right now.

當然。謝謝你的問題，朱利安。首先，讓我退後一步，看看我們的現金轉換週期。 DSO 略微有利。 DPO 是有利的。我們真正投資的地方是我們的庫存，我們手頭的日子。這是一個有意的選擇，以確保我們正在保護我們在電話會議上一直在談論的顯著增長，並為我們的客戶做好準備，因為它與供應中斷有關。由於它與下半年與上半年有關，從歷史上看，我們在下半年產生的自由現金流明顯多於上半年。所以我們認為下半年會變得更好，我們現在對我們的指南感到滿意。

And so is the view that there'll be a very substantial inventory kind of liquidation in the back half, is that the sort of the biggest lever behind earnings driving that cash flow up?

那麼，在後半部分將會有大量庫存清算的觀點也是如此，這是推動現金流上升的盈利背後的最大槓桿嗎？

Well, I don't want to talk about that hypothetically right now. We're going to balance that, obviously, with order flow and what's happening with supply chain. But potentially, we will be liquidating some working capital in the back half of the year.

好吧，我現在不想假設性地談論這個。顯然，我們將通過訂單流和供應鏈正在發生的事情來平衡這一點。但潛在地，我們將在今年下半年清算一些營運資金。

Yes. If you think about it, Julian, I'd say that today, as I mentioned in some of my commentary, we just have an enormous number of inefficiencies that we're dealing with right now in our operations because of supply chain disruptions. And as you can imagine, it only takes one component, could be a very inexpensive component, that prevents you from shipping a very large piece of electrical and expensive piece of electrical switch gear.

是的。如果你想一想，朱利安，我今天想說的是，正如我在一些評論中提到的那樣，由於供應鏈中斷，我們現在正在處理大量的低效率問題。正如您可以想像的那樣，它只需要一個組件，可能是一個非常便宜的組件，這可以防止您運送非常大的電氣和昂貴的電氣開關設備。

And so we're clearly, in some cases, as Tom talked about, consciously putting some inventory in to protect customers to deal with the forward demand, when you look at these orders increase when you look at our backlog. But some of this is also just inefficiencies as a result of all of the supply chain disruptions that we've been living with.

因此，在某些情況下，正如湯姆所說，我們顯然有意識地投入一些庫存來保護客戶以應對未來的需求，當您查看我們的積壓訂單時，這些訂單會增加。但是，由於我們一直生活的所有供應鏈中斷，其中一些也只是效率低下。

Yes.

是的。

And so we clearly, and I would be disappointed -- and I know my team is listening on the call, if we don't do a much better job in DOH in the second half of the year.

所以我們很清楚，我會感到失望 - 我知道我的團隊正在聽電話，如果我們在下半年沒有在 DOH 做得更好的話。

Absolutely. Absolutely. And I mean just an anecdotal related to the supply disruption, we've got a lot of work-in-process inventory in our factories. And we're waiting for those 1 or 2 components to come in so we can ship the product. That also creates disruption in terms of the labor and the manufacturing. So yes, there's a lot of improvement that we can do in the second half of the year, and we're on it.

絕對地。絕對地。我的意思只是與供應中斷有關的軼事，我們的工廠中有很多在製品庫存。我們正在等待那 1 或 2 個組件進來，以便我們可以運送產品。這也對勞動力和製造業造成了破壞。所以是的，我們可以在下半年做很多改進，我們正在努力。

That's helpful. And then just a quick follow-up. The Vehicle segment, so I think the sales are guided there to be up high teens or something in the back half year-on-year organically. Maybe just help us understand sort of how much is that sustained growth in truck, if you like, versus a big turnaround in light vehicle? Any kind of color on the different growth outlook between those 2.

這很有幫助。然後只是快速跟進。車輛部分，所以我認為銷售額在後半年有機地增長了十幾歲或其他東西。也許只是幫助我們了解卡車的持續增長（如果您願意）與輕型車輛的大幅轉變相比有多大？兩者之間的不同增長前景的任何顏色。

Yes. Appreciate the question, Julian. I'd say what we've actually done in terms of the commercial truck market, we've actually taken our outlook down. We had anticipated that North America truck market would be roughly 305,000 units in our prior guidance. We now think it's going to be closer to 294,000. So we've actually taken the truck piece down, but we -- but certainly, a lot of the growth is really a return, first of all, in China.

是的。欣賞這個問題，朱利安。我想說的是，我們在商用卡車市場方面實際上做了什麼，我們實際上已經降低了我們的前景。在我們之前的指導中，我們曾預計北美卡車市場將約為 305,000 輛。我們現在認為它將接近 294,000。所以我們實際上已經降低了卡車的部分，但我們 - 但可以肯定的是，很多增長確實是一種回報，首先是在中國。

I mean China, as you know, was essentially shut down for much of Q2, and we have a very sizable business in our Vehicle business in China. And then you have a lot of these supply chain disruptions that have been especially difficult in the light vehicle market, and many of those are starting to abate. And so we're anticipating that the light vehicle market will see much better performance in the second half than in the first half.

我的意思是，正如你所知，中國在第二季度的大部分時間里基本上都處於關閉狀態，我們在中國的汽車業務擁有非常可觀的業務。然後你會遇到很多供應鏈中斷，這些中斷在輕型汽車市場尤其困難，其中許多已經開始減弱。因此，我們預計輕型車市場下半年的表現將比上半年好得多。

The next question is from Nicole DeBlase from Deutsche Bank.

下一個問題來自德意志銀行的 Nicole DeBlase。

Just maybe circling back to the Electrical order activity. Can you just comment, Craig, on what you guys have been seeing with respect to like large projects versus the shorter cycle component of orders?

只是可能會回到電氣訂單活動。克雷格，你能評論一下你們所看到的大型項目與訂單週期較短的部分嗎？

Yes. I'd say that quite frankly, I don't have that piece of data at my fingertips, Nicole, in general around kind of stratifying the various project sizes. And we'll get back to you at the end, and the team will get back to you more specifically on the project side. But I would say, just to kind of restate a point that we're making, we're seeing broad-based strength every place across the board in our Electrical business.

是的。坦率地說，Nicole，我沒有指尖上的那條數據，通常是關於對各種項目規模進行分層的。我們會在最後回复您，團隊將在項目方面更具體地回复您。但我想說，只是為了重申我們正在提出的一點，我們在電氣業務的各個方面都看到了廣泛的實力。

And as I mentioned, even on our negotiations, which has obviously comes before an order, our negotiations are up some 50% versus last year and some 20% versus Q1. And so we're really just seeing broad-based strength in the Electrical business. And we'll have to wait and see what the exact data says, but tough to imagine that we're not seeing it in large, medium and small projects, but we'll get you the data.

正如我所提到的，即使在我們的談判中，這顯然是在訂單之前進行的，我們的談判與去年相比增加了約 50%，與第一季度相比增加了約 20%。因此，我們真的只是看到了電氣業務的廣泛實力。我們將不得不等待，看看確切的數據說了什麼，但很難想像我們沒有在大中小型項目中看到它，但我們會為您提供數據。

Yes. And on those negotiations, we're seeing growth in both commercial and industrial, both very strong versus last year and the previous quarter.

是的。在這些談判中，我們看到商業和工業的增長，與去年和上一季度相比都非常強勁。

That's great to hear. And then just as a quick follow-up, I guess, market volatility has obviously picked up. How are you guys feeling about the M&A pipeline and maybe the potential for continued bolt-ons in this sort of a macro environment?

聽到這個消息我很高興。然後，作為一個快速跟進，我猜，市場波動性顯然已經回升。你們如何看待併購渠道以及在這種宏觀環境下持續補強的潛力？

Yes. No, as we said and certainly reflected in our guidance this year with respect to a relatively modest share buyback, that it was our intention to really to prioritize M&A this year. And as we look forward, as we looked at the pipeline of opportunities that the teams are looking at, and we still believe that, that's the right call. Valuations, in some cases, have still held up despite the fact that the market has retreated. As you know, it always takes a little time between market retrenchment and rising interest rates and what that does to future earnings before sellers internalize that.

是的。不，正如我們所說，並且肯定反映在我們今年關於相對適度的股票回購的指導中，我們打算在今年真正優先考慮併購。當我們向前看時，當我們看到團隊正在尋找的機會管道時，我們仍然相信，這是正確的選擇。儘管市場已經回落，但在某些情況下，估值仍然保持不變。如您所知，在市場緊縮和利率上升之間總是需要一點時間，以及在賣方將其內部化之前這對未來收益的影響。

So I'd say we're still working some opportunities that we think could be interesting. But obviously, no announcements to make today, but it's certainly still a key priority for the company.

所以我想說我們仍在尋找一些我們認為可能有趣的機會。但顯然，今天沒有要發布的公告，但這肯定仍然是公司的一個關鍵優先事項。

The next question is from Brett Linzey from Mizuho.

下一個問題來自瑞穗的 Brett Linzey。

Just wanted to come back to pricing and specifically stickiness. Just in terms of the compounding price we've seen in the industry for the last several quarters, are you getting any pushback at all from distribution? And then, I guess, would it be a fair assessment that some of the larger investments around solutions that have a payback, you tend to hold price historically better? I'm just curious how you see that playing out in a deflationary environment.

只是想回到定價，特別是粘性。就過去幾個季度我們在行業中看到的複合價格而言，您是否從分銷中得到任何阻力？然後，我想，圍繞有回報的解決方案進行的一些較大投資是否會是一個公平的評估，你傾向於在歷史上保持更好的價格？我只是好奇你如何看待在通縮環境中的表現。

Yes. The first thing I would acknowledge is that this inflationary environment is not like any that we've ever seen in our lifetimes. And so we'll have to wait and see how it all plays through. But having said that, and to the point that you raised, historically speaking, price has been very sticky in our business. And as you know, because we go to market through distribution, distributors like price, gives them an opportunity to revalue inventories. And as long as the world continues to hang in there, it tends to be a good thing for our distributors as well.

是的。我要承認的第一件事是，這種通脹環境與我們有生之年見過的任何環境都不一樣。因此，我們將不得不等待，看看這一切是如何進行的。但是話雖如此，並且就您提出的觀點而言，從歷史上看，價格在我們的業務中一直非常具有粘性。如您所知，因為我們通過分銷進入市場，分銷商喜歡價格，這給了他們重新評估庫存的機會。只要世界繼續存在，這對我們的分銷商來說也是一件好事。

And today, I don't know what is it, some 70% of our business goes through distribution. And so I'd say that what we would generally expect in our business is that price to be very sticky. And we're obviously seeing a little bit of retrenchment in commodity costs on the material side. But having said that, labor costs are up, logistics costs are up, energy costs are up.

而今天，我不知道它是什麼，我們大約 70% 的業務是通過分銷進行的。所以我想說的是，我們通常對我們業務的期望是價格非常具有粘性。我們顯然看到物質方面的商品成本略有下降。但是話雖如此，勞動力成本上升，物流成本上升，能源成本上升。

And so we're just seeing a lot of inflation in almost every aspect of the economy, that I would say that even if commodity costs come off a little bit, these other factors are going to keep prices and inflation at probably higher levels than you would probably imagine at first blush. So I'd say long story short, we think it's going to be fairly sticky, which is consistent with the way it's behaved historically.

因此，我們幾乎在經濟的各個方面都看到了很多通貨膨脹，我想說的是，即使商品成本下降了一點，這些其他因素也會使價格和通貨膨脹保持在可能比你更高的水平乍一看可能會想像。所以我想說長話短說，我們認為它會相當有粘性，這與它在歷史上的表現方式是一致的。

Now I appreciate that. And just a follow-up, you talked about some of the R&D and selling force additions you've made. But could you just talk about capital investment and enhancing capacity to capture some of these secular trends? Are you selectively investing in kind of brick-and-mortar and new capacity? And then where is the current plant utilization for your Electrical business?

現在我很感激。只是一個後續，你談到了你所做的一些研發和銷售隊伍的增加。但是你能談談資本投資和增強捕捉這些長期趨勢的能力嗎？您是否有選擇性地投資於實體和新產能？那麼您的電氣業務當前的工廠利用率在哪裡？

Yes. I'd say the short answer to the question is absolutely yes. We are, in fact, making investments in brick-and-mortar to deal with this -- the secular growth trends that we see coming, to deal with the strong order growth that we have already as well as our outlook for future years. And so we are having to make capital investments principally, to your point, in our Electrical business. And so we're making those investments today. We'll continue to make them in the future.

是的。我想說這個問題的簡短答案是肯定的。事實上，我們正在對實體店進行投資以應對這一問題——我們看到即將到來的長期增長趨勢，以應對我們已經擁有的強勁訂單增長以及我們對未來幾年的展望。因此，就您而言，我們必須主要在我們的電氣業務中進行資本投資。所以我們今天正在進行這些投資。我們將在未來繼續製造它們。

And I think it's a reflection of the confidence that we have that these markets are going to play out as we expected. And both in R&D, which I talked about originally to come up with products and solutions, to come up with digital offerings and solutions that we're selling into these markets, to deal with some of the new technology that we're investing in, to be ready for energy transition and building out the electrical charging infrastructure across the U.S. and the rest of the world. And so we're definitely in an investment cycle and putting more capital into the business today than we probably have in many, many years. I'd say the Aerospace and Vehicle is largely different. We have -- we really have the investments we need there because we're still well below peak volume levels. But in the Electrical business, without a doubt, we're making big investments in capacity expansion.

我認為這反映了我們對這些市場將如我們預期的那樣發展的信心。在研發方面，我最初談到的是提出產品和解決方案，提出我們向這些市場銷售的數字產品和解決方案，處理我們正在投資的一些新技術，為能源轉型做好準備，並在美國和世界其他地區建設充電基礎設施。因此，我們今天肯定處於投資週期中，並且向業務投入的資金比我們可能在很多很多年裡都多。我想說航空航天和車輛有很大不同。我們有——我們確實有我們需要的投資，因為我們仍然遠低於峰值水平。但在電氣業務方面，毫無疑問，我們正在對產能擴張進行大量投資。

The next question is from Deane Dray from RBC Capital Markets.

下一個問題來自加拿大皇家銀行資本市場的 Deane Dray。

Just covered a lot of ground here, but I was interested in having you expand on the point about circuit breaker scarcity because that's one of your core businesses. And my guess is it's directly related to semiconductor shortages. But we have heard from a number of companies this quarter talking about kind of gradual improvement and semiconductor availability. How has that badly impacted you all on the Electrical side and then specifically in circuit breakers?

剛剛在這裡介紹了很多內容，但我有興趣讓您擴展有關斷路器稀缺性的觀點，因為這是您的核心業務之一。我的猜測是它與半導體短缺直接相關。但是本季度我們從許多公司那裡聽到了關於逐步改進和半導體可用性的討論。這對電氣方面以及特別是斷路器方面的所有人產生了怎樣的嚴重影響？

No, you're absolutely right, Deane. The places where we're having the biggest challenges right now is on anything that takes a microprocessor and increasing what we're finding in the world of circuit protection, whether that's in a residential home or whether that's in a commercial and industrial building, the intelligent circuit breakers are in demand. They're growing at a faster rate, and that's where we have been challenged, certainly, up to this point this year. And I'd say, as we look forward, we have -- things have gotten better.

不，你完全正確，迪恩。我們現在面臨最大挑戰的地方是任何需要微處理器並增加我們在電路保護領域中發現的東西，無論是在住宅中還是在商業和工業建築中，需要智能斷路器。它們正在以更快的速度增長，這就是我們一直面臨的挑戰，當然，直到今年為止。我想說，正如我們期待的那樣，我們已經 - 事情變得更好了。

We have basically crawled and circled the earth trying to find every available circuit breaker that we -- of electrical component that we can find. In many cases, buying stuff from distributor markets at very high prices, by the way. And so things have definitely improved. But I would say by no means are we out of the woods when it comes to shortness of supply, when it comes to anything that has an electronic component.

我們基本上已經在地球上爬行和盤旋，試圖找到我們能找到的每一個可用的斷路器——我們能找到的電子元件。順便說一句，在許多情況下，以非常高的價格從分銷商市場購買東西。所以事情肯定有所改善。但我想說的是，在供應短缺問題上，在涉及到任何有電子元件的東西時，我們絕不會走出困境。

Lead times have gone out pretty dramatically, and we continue to have shortages. One of the reasons why our backlog is growing at the rate that it's growing, is that we just don't have the ability to serve all the demand that we're seeing. And so on the one hand, you have demand that's as good as it's ever been. On the other hand, you have an industry that probably underinvested. And as a result -- and then you have all these other supply chain disruptions that we've been dealing with around China and now in parts of Europe due to the war as well that are exacerbating things. So I'd say, in short, it's getting better, but by no means that we're out of the woods.

交貨時間已經大大縮短，我們仍然存在短缺。我們的積壓工作以不斷增長的速度增長的原因之一是我們沒有能力滿足我們所看到的所有需求。因此，一方面，您的需求與以往一樣好。另一方面，您的行業可能投資不足。結果 - 然後你有所有這些其他供應鏈中斷，我們一直在中國各地處理，現在在歐洲部分地區也由於戰爭而加劇了事情。所以我想說，簡而言之，情況正在好轉，但絕不意味著我們已經走出困境。

Okay. Thanks, guys. We have reached the end of the call, and we do appreciate everybody dialing in to ask questions. As always, Chip and I will be available to address you guys follow-up questions. Thank you. Have a good day.

好的。多謝你們。我們已經到了通話的尾聲，我們非常感謝每個撥入詢問問題的人。與往常一樣，Chip 和我將隨時為你們解答後續問題。謝謝你。祝你有美好的一天。

Thank you. And that does conclude our conference for today. Thank you for your participation and for using AT&T Event Conference. You may now disconnect.

謝謝你。這確實結束了我們今天的會議。感謝您的參與和使用 AT&T Event Conference。您現在可以斷開連接。