Graco Inc (GGG) 2025 Q1 法說會逐字稿

Good morning and welcome to the first quarter conference call for Graco Inc.

早上好，歡迎參加 Graco Inc. 第一季電話會議。

If you wish to access the replay for this call, you may do so by visiting the company website at www.graco.com. Graco has additional information available in a PowerPoint slide presentation which is available as part of the webcast player. At the request of the company, we will open the conference up for questions and answers after the opening remarks from management.

如果您希望收聽本次通話的重播，可以造訪公司網站 www.graco.com。 Graco 在 PowerPoint 幻燈片簡報中提供了更多信息，該簡報可作為網路廣播播放器的一部分使用。應公司的要求，我們將在管理層致開幕詞後開放會議問答環節。

During this call, various remarks may be made by management about their expectations, plans, and prospects for the future. These remarks constitute forward-looking statements for the purposes of the Safe Harbor provisions of the Private Securities Litigation Reform Act.

在這次電話會議中，管理層可能會對他們的期望、計劃和未來的前景發表各種評論。這些言論構成《私人證券訴訟改革法案》安全港條款所指的前瞻性聲明。

Actual results may differ materially from those indicated as a result of various risk factors including those identified in Item 1A of the company's 2024 Annual Report on Form 10-K and in Item 1A of the company's most recent quarterly report on Form 10-Q. These reports are available on the company's website at www.graco.com and the SEC's website at www.sec.gov.

由於各種風險因素，實際結果可能與所示的結果有重大差異，包括公司 2024 年 10-K 表年度報告第 1A 項和公司最新 10-Q 表季度報告第 1A 項中確定的風險因素。這些報告可在公司網站 www.graco.com 和美國證券交易委員會網站 www.sec.gov 上查閱。

Forward-looking statements reflect management's current views and speak only as of the time they are made. The company undertakes no obligation to update these statements in light of new information on future events.

前瞻性陳述反映管理階層目前的觀點，且僅代表其作出時的觀點。本公司不承擔根據未來事件的新資訊更新這些聲明的義務。

I will now turn the conference over to Chris Knutson, Vice President, Controller, and Chief Accounting Officer.

現在，我將會議交給副總裁、財務主管兼首席會計官 Chris Knutson。

Good morning, everyone, and thank you for joining our call. I'm here today with Mark Sheahan and David Lowe. I will provide a brief overview of our quarterly results before turning the call over to Mark for additional commentary.

大家早安，感謝你們參加我們的電話會議。今天我和馬克希漢 (Mark Sheahan) 和大衛洛 (David Lowe) 一起來到這裡。我將簡要概述我們的季度業績，然後將電話轉給馬克以獲得更多評論。

Yesterday, Graco reported first-quarter sales of $528 million, an increase of 7% from the first quarter of last year. Excluding acquisitions, which contributed 6% growth, sales grew 3% for the quarter. The effect of currency translation reduced sales by 2%. Reported net earnings increased 2% to $124 million or $0.72 per diluted share. Excluding the impact of excess tax benefits from stock option exercises, adjusted non-GAAP net earnings were $120 million or $0.70 per diluted share, an increase of 8%.

昨日，Graco 公佈第一季銷售額為 5.28 億美元，較去年第一季成長 7%。不計收購貢獻的 6% 的成長，本季銷售額成長了 3%。貨幣換算的影響導致銷售額減少了 2%。報告淨收益成長 2% 至 1.24 億美元或每股 0.72 美元。不包括股票選擇權行使的超額稅收優惠的影響，調整後的非 GAAP 淨利潤為 1.2 億美元，即每股攤薄收益 0.70 美元，成長 8%。

The gross margin rate decreased 150 basis points in the quarter. The recurring impact of acquisitions accounted for nearly 100 basis points of the decline. Strong price realization was not enough to offset higher product costs resulting from lower factory volume, which accounted for the remaining decrease.

本季毛利率下降了150個基點。收購的反覆影響造成了近 100 個基點的下降。強勁的價格實現不足以抵消工廠產量下降導致的產品成本上升，這導致了剩餘的下降。

Operating expenses were flat in the quarter as incremental expenses from acquisitions of $10 million or a 7% increase in total expenses were offset by savings from the One Graco initiative and timing of stock-based compensation expenses.

本季度營運費用持平，因為收購產生的 1000 萬美元增量費用或總費用增加 7% 被「一個 Graco」計劃的節省和股票薪酬費用的時間所抵消。

Operating earnings increased $11 million or 8% during the quarter on increased sales volume. Operating earnings as a percent of sales was 27% for the quarter, which is consistent with last year. Contractor segment operating margin rate for the quarter was 24% compared to 29% for the same quarter last year, a decline of 5 percentage points. The acquisition of Corob decreased the contractor operating margin rate by 3 percentage points, with the remaining decline due primarily to lower sales and factory volume.

由於銷售量增加，本季營業利潤增加了 1,100 萬美元，即 8%。本季營業利潤佔銷售額的百分比為 27%，與去年持平。本季承包商部門營業利潤率為 24%，而去年同期為 29%，下降了 5 個百分點。收購 Corob 導致承包商的營業利潤率下降了 3 個百分點，其餘的下降主要歸因於銷售額和工廠產量的下降。

Interest and other were flat in the quarter. During the quarter, we recognized the gain on the sale of the former manufacturing and distribution facility in Switzerland of $5 million. This gain was offset by currency exchange losses and lower interest income.

本季度利息和其他方面持平。在本季度，我們確認出售位於瑞士的前製造和分銷設施的收益為 500 萬美元。這一收益被貨幣兌換損失和較低的利息收入所抵銷。

The adjusted effective tax rate was 20.5%, which is consistent with our expected full year tax rate of approximately 19.5% to 20.5% on an adjusted basis. Cash provided by operations totaled $125 million, an increase of $6 million from last year. Cash provided by operations as a percent of adjusted net earnings was 104%.

調整後的有效稅率為 20.5%，與我們預期的全年稅率（調整後約為 19.5% 至 20.5%）一致。經營活動產生的現金總額為 1.25 億美元，比去年增加 600 萬美元。經營活動提供的現金佔調整後淨收益的百分比為 104%。

Significant year-to-date uses of cash include share repurchases of $238 million, dividends of $47 million, acquisition adjustments of $10 million, and capital expenditures of $11 million. These cash uses were offset by share issuances of $28 million.

今年迄今的重大現金用途包括 2.38 億美元的股票回購、4,700 萬美元的股息、1,000 萬美元的收購調整和 1,100 萬美元的資本支出。這些現金使用量被 2,800 萬美元的股票發行所抵銷。

We repurchased 2.8 million shares totaling $238 million during the first quarter of the year. We continue to repurchase shares in the first weeks of April, and as the market closed yesterday, we have repurchased 4.4 million shares for nearly $360 million year to date. Based on this activity, we anticipate the average diluted shares outstanding for the full year 2025 to be approximately 170 million shares.

我們在今年第一季回購了 280 萬股，總額達 2.38 億美元。我們在 4 月份的第一周繼續回購股票，截至昨天市場收盤，今年迄今我們已經回購了 440 萬股，價值近 3.6 億美元。根據此活動，我們預計 2025 年全年平均稀釋流通股數約為 1.7 億股。

A few comments as we look forward to the rest of the year. Based on current exchange rates, assuming the same volumes, mix of products, and mix of business by currency as in 2024, movement in foreign currencies would have no impact on net sales or net earnings for the full year. Unallocated corporate expense remains unchanged and are projected to be $39 million to $42 million for the full year, or about $11 million per quarter. Finally, we expect capital expenditures to be approximately $50 to $60 million in 2025.

展望今年剩餘的時間，我們想發表一些評論。根據目前匯率，假設交易量、產品組合和按貨幣劃分的業務組合與 2024 年相同，外幣變動不會對全年淨銷售額或淨收益產生影響。未分配的公司支出保持不變，預計全年為 3,900 萬美元至 4,200 萬美元，或每季約 1,100 萬美元。最後，我們預計 2025 年的資本支出約為 5,000 萬至 6,000 萬美元。

I'll now turn the call over to Mark for further segment and regional commentary.

現在我將把電話轉給馬克，讓他發表進一步的專題和地區評論。

Thank you, Chris. Good morning, everyone. All my comments will be on an organic constant currency basis.

謝謝你，克里斯。大家早安。我的所有評論都將以有機恆定貨幣為基礎。

Overall, the start of the year was strong. We had 7% sales growth, including a 6% contribution from Corob and 3% organic sales growth. Corob has met our expectations as we continue our integration efforts.

整體而言，今年開局強勁。我們的銷售額成長了 7%，其中 Corob 貢獻了 6%，有機銷售額成長了 3%。隨著我們繼續進行整合努力，Corob 已經滿足了我們的期望。

For the quarter, all segments and regions grew except for contractor EMEA, which experienced slower activity in the professional paint channel. Reduced foot traffic in the home center channel also contributed to a slight decline in the contractor segment, despite robust growth in the North America Pro Paint channel.

本季度，除承包商 EMEA 外，所有部門和地區均實現成長，而該部門在專業塗料管道的活動有所放緩。儘管北美專業油漆通路成長強勁，但家居中心通路客流量的減少也導致承包商部門的銷售額略有下滑。

Last year, declines in our global semiconductor and China industrial businesses accounted for nearly 60% of the overall annual revenue shortfall. As expected, these businesses grew in the first quarter, driving positive results in both the industrial and the new expansion markets segments.

去年，我們全球半導體和中國工業業務的下滑佔全年整體收入缺口的近60%。正如預期的那樣，這些業務在第一季實現了成長，推動了工業和新擴張市場領域的積極業績。

Incoming order activity was steady during the quarter and consistent with billing activity. Backlogs remain at normal levels across all segments. For the past six weeks, incoming order rates have been up double digits compared to the first quarter run rate. This is only one data point and it may include orders placed in advance of tariffs.

本季的訂單活動穩定，與帳單活動一致。所有部門的積壓訂單均維持在正常水準。過去六週內，新訂單率與第一季的運行率相比上升了兩位數。這只是一個數據點，它可能包括在關稅之前下達的訂單。

After the close of the quarter, the announced tariffs between the United States and China will have an impact on our business. China accounted for nearly 6% of our global revenue for the full year 2024 and for this quarter. In addition, nearly 6% of our cost of goods sold has China as the country of origin. Our teams are developing plans to mitigate these impacts, but these will take time to implement.

本季結束後，美國和中國之間宣布的關稅將對我們的業務產生影響。2024 年全年及本季，中國市場占我們全球營收的近 6%。此外，我們銷售商品成本的近6%來自中國。我們的團隊正在製定計劃來減輕這些影響，但實施這些計劃需要時間。

Activities we're undertaking include qualifying additional suppliers, moving component manufacturing to our US factories, and redesigning products where components are either too costly or unavailable to purchase from Chinese vendors. We have about three months of finished goods inventory in China, and about three months of components in our US manufacturing locations that will help limit our exposure in the second quarter.

我們正在進行的活動包括篩選更多供應商、將零件製造轉移到我們的美國工廠以及重新設計那些零件價格過高或無法從中國供應商購買的產品。我們在中國擁有大約三個月的成品庫存，在美國製造基地擁有大約三個月的零件庫存，這將有助於限制我們在第二季度的風險敞口。

We have implemented a pricing surcharge on all goods subject to tariffs shipped into China. This pricing surcharge is specifically targeted at retaliatory tariffs in China and will not affect the rest of our business in the Asia Pacific region. While we've not ruled out the possibility of additional pricing actions this year, our US-based manufacturing footprint, current inventory levels, and strong financial position gives us the opportunity to be thoughtful regarding further pricing actions.

我們對所有運往中國的需繳納關稅的商品實施了價格附加費。此次價格附加費專門針對中國的報復性關稅，不會影響我們在亞太地區的其他業務。雖然我們沒有排除今年採取額外定價行動的可能性，但我們在美國的生產基地、當前的庫存水平以及強勁的財務狀況使我們有機會認真考慮進一步的定價行動。

Now turning to some commentary on our segments and regions. The contractor segment's sales declined 1% in the quarter due to continued softness in the home center business and challenging EMEA construction markets.

現在來談談對我們的細分市場和地區的一些評論。由於家居中心業務持續疲軟以及歐洲、中東和非洲地區建築市場面臨挑戰，承包商部門的銷售額在本季下降了 1%。

Pro Paint had a strong performance in North America compared to a soft quarter last year, but it was not enough to offset these declines. We also have not seen the full benefit of products launched this year as they will be introduced over the next few quarters. These upcoming releases, coupled with the successful introduction of new products last year, should position us well for the remainder of the year.

與去年同期的疲軟表現相比，Pro Paint 在北美的表現強勁，但不足以抵銷這些下滑。我們還未看到今年推出的產品的全部優勢，因為它們將在未來幾季內推出。這些即將發布的產品，加上去年成功推出的新產品，將為我們在今年剩餘時間內取得良好的業績奠定基礎。

Our strategic US sourcing and manufacturing footprint will also give us an advantage in the United States versus key competitors who manufacture offshore, particularly in China. The US market represents nearly 70% of total contractor sales excluding acquisitions.

我們在美國戰略性的採購和製造佈局也將使我們在美國相對於在海外（特別是在中國）製造的主要競爭對手佔據優勢。美國市場佔承包商總銷售額（不包括收購）的近 70%。

Industrial segment sales increased 5% with growth in all regions. Powder finishing system sales saw strong activity in Asia Pacific compared to a soft first quarter last year, while liquid finishing systems had steady performance across other regions. Vehicle services performed well as companies continue to make investments in their service and repair shops. Increased volume in the industrial segment drove incremental margins of nearly 100% for the quarter.

工業部門銷售額成長 5%，所有地區均實現成長。與去年第一季的疲軟相比，亞太地區的粉末整理系統銷售表現強勁，而液體整理系統在其他地區表現穩定。由於該公司繼續對其服務和維修店進行投資，汽車服務表現良好。工業部門銷售的成長推動本季利潤率增量接近 100%。

Sales in the expansion market segments increased by 12% with positive momentum in the semiconductor market, which we started seeing at the end of last year. The environmental businesses also grew for the fourth consecutive quarter with robust activity in the groundwater testing and analyzer, gas analyzer categories.

擴張市場部分的銷售額成長了 12%，得益於半導體市場的正面勢頭，我們從去年年底就開始看到這種勢頭。環境業務也連續第四個季度實現成長，地下水測試和分析儀、氣體分析儀類別的業務表現強勁。

Moving to our outlook, we are maintaining our full year revenue guidance of low-single-digit growth on an organic constant currency basis. Evolving trade policies and tariffs with China have created economic uncertainty that could negatively impact our full year revenue guidance by approximately 1% to 2%. We're closely monitoring developments and we'll adjust our strategy if necessary.

展望未來，我們維持全年營收預期，即以有機固定匯率計算實現低個位數成長。不斷變化的貿易政策和與中國的關稅造成了經濟不確定性，這可能會對我們的全年收入預期產生約 1% 至 2% 的負面影響。我們正在密切關注事態發展，如有必要，我們將調整策略。

Despite these near-term challenges, Graco remains strongly positioned for long-term success as we continue to execute our proven growth strategies and invest in our businesses.

儘管面臨這些短期挑戰，但 Graco 仍處於有利地位，能夠取得長期成功，因為我們將繼續執行行之有效的成長策略並投資於我們的業務。

That concludes our prepared remarks. Operator, we're ready for questions.

我們的準備好的演講到此結束。接線員，我們已經準備好回答問題了。

(Operator Instructions) Deane Dray, RBC Capital Markets.

（操作員指示） Deane Dray，RBC 資本市場。

Thank you. Good morning, everyone. I appreciate all the detail you've provided on the tariff situation and maybe just to start there with some clarifications. The first, just for this quarter, it sounded like you did benefit from some pre-positioning by customers like a pre-buy that was reflected in that six weeks of orders.

謝謝。大家早安。我感謝您提供的有關關稅情況的所有細節，也許我只是從一些澄清開始。首先，就本季而言，聽起來您確實受益於客戶的一些預先定位，例如預購，這反映在六週的訂單中。

So just clarify there how much that you might have benefited and did you all preposition your shelf inventory? That comment about the three months of finished goods that has already been positioned in China, was that above what you would have typically done? So maybe start there, please.

那麼請澄清一下，您可能會受益多少，以及您是否都預先準備好了貨架庫存？關於已經在中國定位的三個月成品的評論，這是否超出了您通常的做法？所以也許可以從那裡開始吧。

Yeah, so I think that -- I don't know that we saw a lot of order activity in the quarter itself. Most of the real dramatic tariff impact and announcements came out after the quarter ended, but I would say that the six-week calculation that I quoted in terms of our booking rates being up double digits, there likely was some ordering ahead going on there that influenced those numbers. It's hard for us to exactly quantify what that amount is.

是的，所以我認為——我不知道我們在本季度是否看到了很多訂單活動。大多數真正戲劇性的關稅影響和公告都是在本季度結束後發布的，但我想說，我引用的六週計算表明，我們的預訂率上升了兩位數，很可能有一些提前訂購的情況影響了這些數字。我們很難準確量化這個金額。

In China itself, we always have inventory over there and we have proactively moved some of the inventory into the non-bonded status, which basically means that if you do that before, I think, May 13, then those items will not be subject to these new retaliatory tariffs in China. So we did take some more proactive action there just to get that stuff in there.

在中國，我們一直都有庫存，我們已主動將部分庫存轉移到非保稅狀態，這基本上意味著，如果你在 5 月 13 日之前這樣做，那麼這些商品將不會受到中國新的報復性關稅的約束。因此，我們確實採取了一些更積極的行動，以便將這些東西放進去。

And of course we had, stuff on the water as well that's going over there that we will move into non-bonded status once we get it into China. We do think that we have enough inventory over there to last us for a few months. We're obviously working closely with our Chinese distributors to make sure they understand what we have available and to the extent that they want to order products from the United States, at least now they're going to be subject to the retaliatory tariffs.

當然，我們也有在水上運輸的貨物，一旦我們將其運送到中國，我們將轉為非保稅狀態。我們確實認為我們那裡有足夠的庫存，可以使用幾個月。我們顯然正在與中國分銷商密切合作，以確保他們了解我們有哪些產品，並且如果他們想從美國訂購產品，至少現在他們將受到報復性關稅的約束。

And again, we'll be working on a case by cases with our channel partners to do what we think is best there. And hopefully over the next few months, things cool down a little bit and the 145% tariffs come down to a more reasonable level. That's what we're hopeful happens.

再次強調，我們將與通路夥伴逐一工作，採取我們認為最好的措施。希望在接下來的幾個月裡，事情能夠稍微緩和，145% 的關稅能夠降至更合理的水平。這正是我們所希望發生的事。

That's really helpful. So now let's talk about how you've sized the impact, and there's a couple takes here. One is the 6% COGS from China. That's kind of the same neighborhood of a number of the manufacturers that we cover. So that's close to expectations there. What sort of mitigation efforts are going on now?

這真的很有幫助。現在讓我們來談談您如何評估影響，這裡有幾點看法。一是來自中國的6%的銷貨成本。這和我們所報導的許多製造商的情況類似。這與預期很接近。目前正在進行哪些緩解措施？

And what's interesting and maybe this reflects your predominantly US manufacturing footprint, most of the company is talking about an impact on COGS for the tariffs. You've taken the tack to say 1 to 2 percentage points of revenue impact. So how'd you land on the revenue impact? Any kind of just rough math, how you backed into that, and what do you think the tariff is doing on the COGS side for China specifically?

有趣的是，這也許反映了貴公司主要在美國的製造足跡，大多數公司都在談論關稅對 COGS 的影響。您採取的策略是說收入影響為 1 到 2 個百分點。那麼您如何看待收入影響？有任何粗略的計算嗎，您是如何得出這一結論的，您認為關稅對中國的 COGS 方面有何影響？

Yeah, good questions. I mean, the 1% to 2% really was our comment on China, the China impact. That's kind of what we think it is for this year for 2024. If we look at what we did there last year and what we think we're going to be able to do there this year, given our inventory position and other things, we think it's going to be about a 1% to 2% headwind.

是的，好問題。我的意思是，1%到2%確實是我們對中國、對中國的影響的評論。我們認為 2024 年的情況就是如此。如果我們回顧一下去年我們在那裡做了什麼，以及我們認為今年我們能夠在那裡做什麼，考慮到我們的庫存狀況和其他因素，我們認為這將是 1% 到 2% 的逆風。

What's really hard to quantify for us is, are there going to be tariff impacts outside of the US-China connection and will we actually benefit in some cases? Because we do have our US footprint here in some of our key end markets like contractor as we laid out in the opening remarks, 70% of their businesses here, and we are a US-based manufacturer and we know that some of the competition does source a lot of materials from Asia Pacific and China.

對我們來說，真正難以量化的是，除了中美關係之外，是否還會產生關稅影響，以及在某些情況下我們是否真的會受益？因為我們確實在美國的一些主要終端市場有業務，例如我們在開場白中提到的承包商，他們的 70% 的業務都在這裡，而且我們是一家美國製造商，我們知道一些競爭對手確實從亞太地區和中國採購大量材料。

We didn't factor any of that in. There could be some upside. Really, the 1 to 2 percentage is really what we think is going to happen with China. On the cost of goods sold side again, we do have inventory here that we will use up before we start buying and paying 145% tariffs. We have our teams looking at alternative sources. We actually have our engineering teams looking at can we redesign some of the products, such that we may not need to import things from China.

我們沒有考慮到任何這些因素。可能會有一些好處。事實上，我們認為中國確實會出現 1% 到 2% 的增幅。再次從銷售成本來看，我們確實有庫存，在開始購買和支付 145% 的關稅之前我們會用完這些庫存。我們的團隊正在尋找替代來源。實際上，我們的工程團隊正在研究是否可以重新設計一些產品，這樣我們可能就不需要從中國進口產品了。

We might be able to import here locally or we might actually be able to vertically integrate some of the things that we're currently buying from there. So we have a lot of activity going on. I've been really impressed with the professionalism and the diligence that our purchasing team and our manufacturing teams are taking.

我們也許能夠在當地進口，或者我們實際上能夠垂直整合我們目前從那裡購買的一些東西。因此，我們有很多活動正在進行中。我們的採購團隊和製造團隊的專業和勤奮精神給我留下了深刻的印象。

We didn't feel like it was appropriate just to slap surcharges on everywhere. We want our teams to do work and they're doing that work and I think that has paid off for us and as of right now, we feel like it's a manageable situation.

我們認為對所有地方徵收附加費是不合適的。我們希望我們的團隊能夠努力工作，他們也正在努力，我認為這對我們來說是有回報的，而且就目前而言，我們覺得這是一個可控的情況。

Mike Halloran, Baird.

麥克·哈洛倫，貝爾德。

So just some clarifying comments in there then. So when I think about this at the end of the day, maybe a weird way to put it, but what are you functionally trying to manage to here with how you're taking care of the actions? Certainly seems like a balance of servicing customers and managing to the demand levels and trying to avoid demand degradation through incremental pricing.

這裡只是一些澄清性的評論。所以當我在一天結束時思考這個問題時，也許這麼說有點奇怪，但是你透過處理這些行為實際上想要實現什麼目的呢？這顯然是在服務客戶和管理需求水準以及試圖透過增量定價來避免需求下降之間取得平衡。

But I guess what I'm asking is when you look at margin profile, margin dollars, what are you trying to solve? Like what's the equation priority wise from your perspective and how are you thinking about puts and takes as far as that goes, if that makes sense?

但我想我要問的是，當您查看保證金狀況、保證金金額時，您想解決什麼問題？例如，從您的角度來看，方程式的優先順序是什麼？如果說得通的話，您是如何考慮投入和產出的？

Well, it's never an easy environment at any given time, but this in particular with all the volatility makes it even more challenging. I think that an overriding approach that our team has had here in the short term is essentially that we believe that this stuff will become a lot more clearer over the next three months than it is here today. And so taking a real quick reaction could potentially be an overreaction and given the strong posture that we have and the good presence that we have with our customers and our brand, we really feel like being patient and taking our time and making sure that we fully understand how things are going to play out before we do things makes a lot of sense.

嗯，任何時候這都不是一個容易的環境，但尤其是在這種波動性之下，它變得更具挑戰性。我認為，我們團隊在短期內採取的首要方法是，我們相信，在未來三個月內，這些事情會比現在更清晰。因此，採取快速反應可能會是一種過度反應，考慮到我們的強勢姿態以及我們在客戶和品牌中的良好形象，我們真的覺得需要耐心等待，慢慢來，確保在採取行動之前我們完全了解事情將如何發展，這是非常有意義的。

We've run the math on worst case scenarios. Of course, the math doesn't look real good but we have our teams working hard to try to minimize the impact of that and as I've said, a few times now it isn't going to happen overnight. We do have plenty of inventory. I also remind people that we are a global company. We have a global supply chain where we have global footprint.

我們已經對最壞的情況進行了計算。當然，從數學角度來看，結果並不樂觀，但我們的團隊正在努力將其影響降到最低，正如我多次所說的，這不會在一夜之間發生。我們確實有大量庫存。我還提醒人們，我們是一家全球性公司。我們擁有全球供應鏈，業務遍及全球。

We have facilities in Italy, we have them in India, we have them in China, we're starting one up in Vietnam this year. So we do have the ability to flex things around if need be. We certainly don't want to lose customers, particularly in places like China where we've developed really strong good relations and it's a balance to make sure that we try to maintain those during what is clearly a very challenging situation for not only Graco but all industrial companies.

我們在義大利、印度和中國都有工廠，今年我們還將在越南開設一家工廠。因此，如果需要的話，我們確實有能力靈活變通。我們當然不想失去客戶，特別是在中國這樣的地方，我們已經與這些客戶建立了非常牢固的良好關係，我們需要確保在當前對 Graco 乃至所有工業公司都極具挑戰性的情況下盡力維護這些客戶。

So it's a thought process? Just to make sure I understand that you've given yourself a short-term buffer between some of the surcharges and the inventory you've built internally as well as all the mitigation actions you're taking. And that kind of buffers the 2Q. And then as you get through the quarter, clarity emerges then you respond appropriately to whatever that clarity is.

所以這是一個思考過程？只是為了確保我理解，您已經為自己在一些附加費和您內部建立的庫存以及您正在採取的所有緩解措施之間設置了一個短期緩衝。這對第二季度起到了緩衝作用。然後，當你度過這個季度時，清晰度就會出現，然後你會對清晰度做出適當的反應。

And if we don't get clarity, then maybe respond anyways to mitigate the back half through pricing or whatever else. I mean, is that the thought process? You're just buying yourself time?

如果我們得不到明確的答案，那麼也許無論如何都要透過定價或其他方式來緩解後半部的壓力。我的意思是，這就是思考過程嗎？你只是在為自己爭取時間嗎？

I think you said it well. I think that again, we have pricing power, we can pull the lever if we need to, but we don't feel like at this point that we really -- that that's the right thing to do given all the volatility and uncertainty that's there. And we have the ability to weather the storm here for the first few months. I don't think it's really going to impact our results that much in Q2.

我覺得你說得很好。我認為，我們擁有定價權，如果需要，我們可以採取行動，但考慮到目前存在的所有波動性和不確定性，我們並不認為這是正確的做法。我們有能力渡過最初幾個月的難關。我認為這不會對我們第二季的業績產生太大影響。

But for sure by the end of Q2, we should have a much clearer picture on things like do we need to raise prices?

但可以肯定的是，到第二季末，我們應該對是否需要提高價格等問題有更清楚的認識。

Okay, great, thank you. And then follow-up question just to make sure, when you talk about that 1% to 2% that is just in China, I mean that's just the impact on what revenue could look like in the China region, correct? Not --

好的，太好了，謝謝。然後為了確認一下，當您談到僅在中國的 1% 到 2% 時，我的意思是這只是對中國地區收入的影響，對嗎？不是--

Yes.

是的。

Okay, that's all. Thank you.

好的，就這些。謝謝。

Saree Boroditsky, Jefferies.

薩裡‧博羅迪茨基 (Saree Boroditsky)，傑弗里斯 (Jefferies)。

Hi, thanks for taking the question. Maybe just kind of moving to margins, industrial margins. Obviously, very solid in the quarter. Can you just talk about what drove some of that increase as it was higher than your normal incrementals on volume?

你好，謝謝你回答這個問題。或許只是轉向利潤，工業利潤。顯然，本季表現非常穩健。您能否談談是什麼推動了這一成長，因為它高於正常的增量？

Well, I think some of it had to do with -- obviously, they had revenue growth after a handful of quarters where we didn't have that. And as the revenue came back, it came back on a lower expense base because of some of the actions that we took with respect to the One Graco initiative that launched in the late third quarter, early fourth quarter last year. So you put those two things together along with decent margin performance on the gross margin line. It really led to that really nice 100% incremental margin in the quarter.

嗯，我認為這部分與——顯然，在經歷了幾個季度的收入增長之後，他們的收入卻出現了增長，而我們卻沒有。隨著收入的回升，由於我們針對去年第三季末、第四季初推出的「一個 Graco」計畫採取了一些行動，我們的支出基礎也降低了。因此，將這兩件事與毛利率線上的良好利潤表現結合起來。這確實帶來了本季 100% 的增量利潤率。

David, I don't know if you --

大衛，我不知道你是否--

I would just say that although we have pretty good profit margins across the large basket of the industrial business, some of the particular areas that were strong in the quarter for us included automotive and within that, specifically liquid finishing which tends to be a very good incremental margin product line for us. Also, we saw uptick in demand in products like sanitary pumps and some of the big pumps that serve the needs of the mining market were pretty strong.

我只想說，雖然我們在整個工業業務領域都擁有相當不錯的利潤率，但本季我們表現強勁的一些特定領域包括汽車，其中特別是液體整理，這對我們來說往往是一個非常好的增量利潤產品線。此外，我們也看到衛生幫浦等產品的需求上升，一些滿足採礦市場需求的大型幫浦的需求相當強勁。

So you could say that the areas of the markets that were particularly strong were drawing on particularly good product lines from us.

因此你可以說，市場中特別強勁的領域都依賴我們特別優秀的產品線。

That's helpful. And then maybe just a larger picture, you mentioned the strength, I think on the powder coating side, but would just be curious to see how customers are thinking about some of the larger project activity and investments?

這很有幫助。然後也許只是一個更大的圖景，您提到了實力，我認為是在粉末塗料方面，但只是好奇地想看看客戶是如何看待一些更大的專案活動和投資的？

Yeah, we had good growth in our Gema powder business in Q1. I think they had growth pretty much across the board in a lot of the different product categories, but for sure, I think that their manual and spare parts business really drove a lot of that increase. It wasn't so much project based.

是的，我們第一季的 Gema 粉末業務取得了良好的成長。我認為他們在許多不同產品類別中都實現了全面成長，但可以肯定的是，他們的手冊和備件業務確實推動了很大一部分成長。它並不是基於專案的。

As I sit here today, I haven't heard of any project cancellations, from that team. I guess we'll see how things play out, but they're off to a great start and they have a lot of backlog from business that they booked in the last year. They feel pretty confident that they're going to have a nice year for us.

今天當我坐在這裡時，我還沒有聽說該團隊取消任何專案。我想我們會看看事情會如何發展，但他們已經有了一個很好的開端，並且去年他們有很多業務積壓。他們非常有信心，我們將會度過美好的一年。

Thank you. Appreciate the color.

謝謝。欣賞色彩。

Bryan Blair, Oppenheimer.

布萊恩布萊爾，奧本海默。

I was hoping you could offer a little more detail, color at least on pre versus post tariff implementation order trends across segments and geographies? I know that's a relatively short time period and to get a sense of underlying demand, there's some smoothing effect and no doubt the playing field will change going forward. So a lot of moving parts.

希望您能提供更多細節，至少介紹一下各部門和地區關稅實施前後的訂單趨勢？我知道這是一個相對較短的時間段，為了了解潛在的需求，會有一些平滑效應，毫無疑問，未來的競爭環境將會改變。有很多活動部件。

But just curious if you would call anything out in terms of significant changes in trend relative to typical seasonality or your team's expected demands?

但我只是好奇，您是否會指出與典型季節性或您的團隊的預期需求相關的趨勢的重大變化？

Yeah, I think what I would say is that the order intake in Q1 was again pretty consistent with what the revenue was for the business. So after that, the six-week number that I mentioned during the opening remarks of double digit most likely did include some of the impact from customers that were trying to get in front of any tariffs that might apply to critical products. I don't know that it was that meaningful.

是的，我想說的是，第一季的訂單量與業務收入相當一致。因此，在此之後，我在開場白中提到的六週數字兩位數很可能確實包括了那些試圖避開可能適用於關鍵產品的任何關稅的客戶的一些影響。我不知道它是否那麼有意義。

But for sure, over the last, let's call the month of April, we haven't seen any real degradation in our order trends and we'll see how it plays out for the remainder of the year. But as I sit here right now, it doesn't feel like things are going to be dramatically different than maybe what we saw in Q1 in terms of order activity.

但可以肯定的是，在過去的四月份，我們的訂單趨勢並沒有出現任何實質的下降，我們將拭​​目以待今年剩餘時間的走勢。但就我現在坐在這裡而言，感覺事情不會與我們在第一季看到的訂單活動太大不同。

Okay, appreciate the color. And maybe offer a bit more of an update on Corob integrations, deal performance in the early going? And then I respect the early days here, but very interested to know whether there's traction in introducing Corob to major North American customers and helping the brand establish market presence in the US channel?

好的，欣賞一下顏色。也許可以提供更多關於 Corob 整合和早期交易表現的最新消息？然後我尊重這裡的早期階段，但非常感興趣的是，是否有動力將 Corob 介紹給北美主要客戶並幫助品牌在美國通路建立市場地位？

Yeah, it's early days, but our contractor team is really closely engaged with the Corob team to make sure that we capitalize on the relationship that Graco has with some of the larger customers that purchase that equipment. And I think here in the first few months, it's been more of the introductory meetings, getting people to know each other, introducing the technology, making sure that customers understand some of the differences between Corob and its competitors.

是的，現在還為時過早，但我們的承包商團隊與 Corob 團隊密切合作，以確保我們利用 Graco 與購買該設備的一些大客戶之間的關係。我認為在最初的幾個月裡，更多的是介紹會議，讓人們互相了解，介紹技術，確保客戶了解 Corob 與其競爭對手之間的一些差異。

And then also making sure that the customers understand that it is part of Graco now and that they can come to expect really good customer support, technical service, warranty, all the things that come along with purchasing a Graco product. So we're pretty happy with the progress that the team is making. As you said, it's early days, so I'm not going to point to any specific victories at this point.

然後還要確保客戶明白它現在是 Graco 的一部分，並且他們可以期待真正良好的客戶支援、技術服務、保固以及購買 Graco 產品所帶來的一切。因此，我們對團隊的進展感到非常高興。正如你所說，現在還為時過早，所以我現在還不會指出任何具體的勝利。

No surprises, it's probably been -- the way I would characterize our experience with the company so far, everything that they said that they would do, they've done. Our teams are working really well together, the revenue is coming in the way that we expected it to and really retaining that revenue in year one in any deal is job one because there can be some disruption sometimes when a company is acquired and we made it very clear to our teams that in terms of activities and where the top priority is, it's keep the revenue and let's see if we can grow it by establishing some of these incremental relationships that we know are going to be there over a long-term basis.

毫不奇怪，這可能是——到目前為止，我會這樣描述我們與該公司的合作經歷，他們所說的一切，他們都做到了。我們的團隊合作得非常好，收入正以我們預期的方式增長，並且在任何交易中真正在第一年保持收入是首要任務，因為有時當一家公司被收購時可能會出現一些混亂，我們向我們的團隊明確表示，就活動和首要任務而言，保持收入，讓我們看看我們是否可以通過建立一些我們知道會長期存在的增量關係來增加收入。

I would just add that on maybe the less exciting side but important side of integration on the financial side, I think both Chris and I would say that for us, a relatively substantial size transaction, we're building up the reporting and control mechanisms and we feel very good about what we've done so far and get really excellent support from our new colleagues at Corob.

我想補充一點，在財務整合方面，這也許不是那麼令人興奮，但卻非常重要，我想克里斯和我都會說，對於我們這樣一筆規模相對較大的交易來說，我們正在建立報告和控制機制，我們對迄今為止所做的事情感到非常滿意，並得到了 Corob 新同事的出色支持。

Jeff Hammond, KeyBanc Capital Markets Inc.

哈蒙德（Jeff Hammond），KeyBanc Capital Markets Inc.

Appreciate the color on China and the focus there. Can you maybe just speak more broadly to where else you use as a big source, sourcing or countries, and then vice versa where you're doing considerable export where, there'd be some retaliatory tariffs, maybe not to the extent, but still some tariffs? Might be helpful.

欣賞中國的色彩和焦點。您能否更廣泛地談談您使用的其它主要來源、採購來源或國家，反之亦然，在您進行大量出口的地方，是否會有一些報復性關稅，也許程度不及，但仍然會有一些關稅？可能會有幫助。

Yeah, I'm sure that David and Chris could probably do a better job of giving you some details maybe after the call in terms of major sourcing, but I would say that China's probably at the top of the list in terms of a country where we source the largest amount of materials outside of the United States. And we did, like every other company, run the math, let's just say, on this 10% tariff that all imports are being subject to now in the United States.

是的，我相信戴維和克里斯在通話結束後可能會更好地向您提供一些有關主要採購的詳細信息，但我想說，就我們在美國以外採購最多材料的國家而言，中國可能是名單上的首位。和其他公司一樣，我們也計算了一下，現在美國所有進口商品都要繳 10% 的關稅。

And I would just tell you it's very minimal. It's not a meaningful number for us. Now of course, if those ratchet up to larger percentages, that math might change, but at least as far as things stay right now, when you think about us and the tariff impact on our cost of goods sold, you should really be thinking about China.

我只想告訴你，這非常少。對我們來說這不是一個有意義的數字。當然，如果這些比例上升到更大，那麼數學計算可能會發生變化，但至少就目前的情況而言，當你考慮我們以及關稅對我們銷售成本的影響時，你真的應該考慮中國。

And I would just add to that because I think that's exactly the point. Maybe it also is an explaining thing, the way we talk about the impact of tariff is different perhaps than some of the other companies you follow, and it goes to the fact that at least with where we stand today in the case of most of the tariffs, that really isn't the big story.

我只是想補充一點，因為我認為這正是重點。也許這也是一個解釋性的事情，我們談論關稅影響的方式可能與您關注的其他一些公司不同，事實是，至少就我們今天所處的大多數關稅情況而言，這並不是什麼大問題。

The big story is what would happen to demand certainly in a market like China if the kinds of tariffs that we're looking at stay in place and heaven forbid that became more the norm in some of the other places, the top line would be the story. I think it's reflective of the fact that we have this 80%-plus percent US manufacturing footprint.

最重要的問題是，如果我們考慮的關稅類型保持不變，並且上帝保佑，這種情況不會在其他一些地方變得更加常態，那麼在中國這樣的市場中，需求會發生什麼變化，最重要的就是故事。我認為這反映了我們擁有 80% 以上的美國製造業足跡。

And as Mark touched on, even on the market demand side, yes, there's some obvious downsides with potential tariffs from our trading partners. On the other hand, there's some upside, too, not just perhaps a made in the USA preference, but our ability to get products. Most of our products in the hands of our domestic customers without a lot of change in our product cost structure.

正如馬克所提到的，即使在市場需求方面，我們的貿易夥伴可能徵收的關稅也會帶來一些明顯的負面影響。另一方面，也有一些好處，不只是美國製造的偏好，還有我們獲得產品的能力。我們的產品大多在國內客戶手中，而我們的產品成本結構並沒有太大的變化。

Okay, that's really helpful. And the contractor, I think you mentioned the professional paint channel being weak and it's been choppy for some time. Just wondering what you're hearing from the customer base there just in general kind of given one uncertainty and just kind of the incremental weakness in housing here more recently?

好的，這確實很有幫助。至於承包商，我想您提到過專業油漆管道比較薄弱，而且一段時間以來一直不穩定。我只是想知道，考慮到不確定性以及最近的房屋市場逐漸疲軟，您從那裡的客戶群聽到了什麼？

Yeah, just to clarify Jeff, in North America here, the professional channel is actually up nicely for us. It was really the home center channel that we experienced pressure, and that's kind of what drove the overall number down for contractor in North America and then outside of Europe, I think, is a region where we have seen some of the professional products pull back a little bit compared to a year ago.

是的，傑夫，我只是想澄清一下，在北美，專業管道對我們來說實際上已經很好了。我們真正感受到壓力的是家庭中心管道，這也是導致北美承包商總體數量下降的原因，我認為，在歐洲以外的地區，我們看到一些專業產品與一年前相比有所回落。

Obviously, we're well positioned to be there in the event that the housing data gets better, and we're hopeful that that happens. There's a ton of factors that go into that, but notwithstanding the things that we can't control like that, we do feel really good about the stuff that we have under way that we can manage and that is our new products that we're launching, our good, strong relationships and trying to gain more market share from existing customers that we have and doing a good job of maintaining those, not only by maybe not moving our prices in a case like we're in right now, but also continue to deliver world-class customer service and support, which I think really does resonate with people in times like this.

顯然，如果住房數據好轉，我們將處於有利地位，並且我們希望這種情況能夠發生。這其中涉及很多因素，但儘管有些事情我們無法控制，我們對正在進行的、可以管理的事情感到非常滿意，那就是我們即將推出的新產品，我們良好、牢固的關係，並試圖從現有客戶那裡獲得更多的市場份額，並很好地維護這些市場份額，不僅在目前的情況下可能不會調整價格，而且還會繼續提供世界一流的客戶服務和支持，我認為這在目前的情況下可能不會調整了價格，而且還會繼續提供世界一流的客戶服務和支持，我認為這在這樣的客戶這樣引起了共鳴的客戶服務和支持。

So who knows what's going to happen macro wise. I think that if it rolls out the way that everyone hopes it does and we start building houses here again in North America and there's more housing activity where our business is, we're really well positioned to capitalize on that both on the top line and on the bottom line.

所以誰知道宏觀方面會發生什麼事。我認為，如果它能像大家希望的那樣順利進行，我們又開始在北美建造房屋，而且我們業務所在地的住房活動也更加活躍，那麼我們就完全有能力從中獲利，無論是在營收還是利潤方面。

Great. Thank you.

偉大的。謝謝。

Andrew Buscaglia, BNP Paribas.

安德魯·巴斯卡利亞，法國巴黎銀行。

Hey, good morning, guys. So I hate to be a dead horse, but on the tariff side, I'm wondering, you guys have such great pricing power historically. And I'm wondering, in contractor specifically, how you perceive that pricing power when you have certain customers, certain large customers, the Sherwin-Williams comes to mind.

嘿，大家早安。所以我不想再重複這些話了，但在關稅方面，我很好奇，從歷史上看，你們是否擁有如此強大的定價權。我想知道，具體到承包商，當你擁有某些客戶，某些大客戶時，你如何看待定價權，例如 Sherwin-Williams。

Just where you might not have as easy as time passing that pricing along, can you talk about that dynamic? Just how you view your pricing powers specifically in that segment?

您可能沒有那麼輕鬆地傳達定價訊息，您能談談這種動態嗎？您如何看待自己在該領域的定價權？

Yeah, I would probably just refer back a couple of years ago when inflation was going crazy and we did have to go to those customers and ask for price increases along with virtually everyone else and a lot of those customers were also passing price increases off on their customers as well. And they understood, they get it, they want to see the data. We're transparent, we share it with them.

是的，我可能只是想回顧幾年前通貨膨脹猖獗的時候，我們確實不得不和幾乎所有其他人一樣去找那些客戶並要求漲價，而很多客戶也將漲價轉嫁給他們的客戶。他們明白了，他們明白了，他們想看到數據。我們是透明的，我們與他們分享。

So I really don't think we would have any major issues if we had to do that. But I will say that I also believe that if we don't have to do that because we are a US based company, that could put us in a really nice position with those customers too, vis a vis companies that are importing things and assembling them in the US and then needing to have higher prices because of the tariffs that they're facing.

所以我真的不認為如果我們必須這樣做的話會遇到什麼大問題。但我要說的是，我也相信，如果我們不必這樣做，因為我們是一家美國公司，那麼與那些進口產品並在美國組裝，然後由於面臨的關稅而需要提高價格的公司相比，這也可以使我們在這些客戶面前處於非常有利的地位。

So we'll see how it plays out. I like where we are as a company. I like our position, particularly with respect to this particular market. And again, we'll see how things play out.

因此我們將拭目以待。我喜歡我們公司的現況。我喜歡我們的地位，特別是在這個特定的市場。我們將再次觀察事情如何發展。

Yeah, okay. And you talked about some of your end markets. I'm wondering if you could specifically talk about your expansion markets which grew for the first time in a while, and I think some of that may be a function of easy comps. But anything incrementally you're seeing there? And I'm wondering if you're starting to see the effects of the reorganization helping, I don't know, drive some incremental demand going forward?

嗯，好的。您還談到了一些終端市場。我想知道您是否可以具體談談您的擴張市場，這些市場在一段時間內首次實現成長，我認為其中一些可能是輕鬆比較的結果。但是您在那裡看到了什麼進展嗎？我想知道您是否開始看到重組的效果，是否有助於推動未來的一些增量需求？

Yeah, it was a really nice quarter for expansion markets. They were kind of up across the board, up 12 overall. America's up 9, Europe, up 4, AP, up, I think, 29 or something like that. But in general, good demand across all the different product groups, White Knight, our semiconductor business did start to rebound toward the end of last year. We saw some of those orders coming in the first quarter so that really helped us out.

是的，對於擴張市場來說，這是一個非常好的季度。他們的排名全面上升，總共上升了 12 位。美國上漲了 9，歐洲上漲了 4，AP 上漲了，我想是 29 或類似的數字。但總體而言，所有不同產品組的需求都很好，White Knight，我們的半導體業務確實在去年年底開始反彈。我們在第一季就看到了一些訂單，這確實對我們有幫助。

Our environmental business also saw decent growth and kind of nice across the board. They did have a tough year last year, so some of that is an easy comp. But nonetheless, I think it's doing well. In terms of One Graco, this is the one group where we really put these businesses together and we asked the teams to do a couple things.

我們的環境業務也取得了不錯的成長，整體表現良好。去年他們確實度過了艱難的一年，因此其中一些是輕鬆的比較。但儘管如此，我認為它做得很好。就「一個 Graco」而言，這是我們真正將這些業務整合在一起的一個團隊，我們要求各個團隊做幾件事。

One, look for opportunities to leverage across the businesses that are in the portfolio, but also look for some adjacent spaces for us to expand into through our M&A strategy. And so I would say that One Graco cost out initiatives really didn't impact this group. Most of that was impactful more on the industrial side of our business, which again going back to the 100% incremental margins, I think it showed up there and then to a lesser extent, on the contractor side.

一方面，尋找機會利用投資組合中的業務，另一方面，尋找一些相鄰的空間，以便我們透過併購策略來擴展。因此我想說，One Graco 成本核算計劃實際上並沒有對這個群體產生影響。其中大部分對我們業務的工業方面影響更大，再次回到 100% 的增量利潤率，我認為它在那裡出現，然後在承包商方面出現程度較小。

Yeah, I would just add more tactically on One Graco, these are early days, but we have had several reports of what I would call of existing Graco distributors expanding their product line activity. For example, a process distributor in Asia getting involved with the sealants adhesive side of the business, a finishing distributor moving into some other product categories. And so from -- I call it the working with channel partners that are already significant channel partners and leveraging that.

是的，我只是想在 One Graco 上進行更多的策略補充，現在還為時過早，但我們已經收到了幾份關於現有 Graco 經銷商正在擴大其產品線活動的報告。例如，亞洲的一家加工經銷商涉足密封劑黏合劑業務，一家精加工經銷商則進軍其他產品類別。因此，我稱之為與已經是重要通路合作夥伴的通路合作夥伴合作並利用這一點。

I think that we're putting some of the building blocks in place. At the Street level, which of course, One Graco has always been about long-term growth. We've had some encouraging reports inside the plant, and I have an attachment for the liquid finishing business because I spent a lot of time in that business and a couple of our sales guys who go into large manufacturers.

我認為我們正在奠定一些基礎。在街道層面，One Graco 當然致力於長期成長。我們在工廠內部收到了一些令人鼓舞的報告，我對液體整理業務很感興趣，因為我花了很多時間在這個業務上，我們的一些銷售人員也進入了大型製造商。

One just recently got out of a large agricultural equipment company, has sold a lot of finishing equipment in the factory and was able to present a new automation lube product line to factory management. We don't have the order yet because big decisions like that in a factory take time, but we have several data points, and these are the on-the-ground end user activities that I'm pretty optimistic will drive real business for us that in the past with our very narrow focus, we just wouldn't have gotten.

一位剛從大型農業設備公司離職的員工，在工廠裡銷售了大量的精加工設備，並能夠向工廠管理層展示一條新的自動化潤滑油產品線。我們還沒有訂單，因為工廠裡做出這樣的重大決定需要時間，但我們有幾個數據點，這些都是實地最終用戶活動，我非常樂觀，它們將為我們帶來真正的業務，而在過去，由於我們的關注點非常狹窄，我們根本無法獲得這些業務。

Okay, that's great color. Thanks.

好的，顏色很棒。謝謝。

Walter Liptak, Seaport Global Securities.

沃爾特·利普塔克 (Walter Liptak)，Seaport Global Securities。

Hi, good morning. This is Walt Liptak with Seaport. Wanted to ask about the contractor business in Asia. The volume of [Plus 1] looked pretty good to me. I think that had been weaker.

嗨，早安。我是 Seaport 的 Walt Liptak。想詢問有關亞洲的承包商業務。我覺得 [Plus 1] 的音量看起來相當不錯。我認為那已經比較弱了。

I wonder if you could talk about the trend there and was this the sort of a thing where you're doing more import into China or finished products where you could have more of a headwind later in the year?

我想知道您是否可以談談那裡的趨勢，這是否意味著您正在向中國進口更多成品，而今年晚些時候您可能會面臨更大的阻力？

Yeah, I think the AP in general for contractor up 35%, but only 1% volume and price, and I think that that was really mostly driven by a pretty good business over in Australia, New Zealand, offsetting more of a sluggish environment in places like China.

是的，我認為承包商的 AP 總體上漲了 35%，但數量和價格僅上漲了 1%，我認為這主要是由於澳洲、紐西蘭的業務表現良好，抵消了中國等地低迷的經濟環境的影響。

Okay, all right, great. Going back to the tariff issues, when you guys think about some of the longer-term mitigation things like reshoring or vertically integrating some of that China supply, I guess one question is how much of that is electronics and things that you might not be able to duplicate that easily and you have to resort to pricing?

好的，好的，太好了。回到關稅問題，當你們考慮一些長期緩解措施，例如回流或垂直整合部分中國供應時，我想一個問題是，其中有多少是電子產品以及你們可能無法輕易複製而必須訴諸定價的東西？

And then, at what point do you have the confidence that the tariffs that we'll be living with for a while and you can make investments into your own vertical integration or into new suppliers?

那麼，在什麼時候你有信心我們將在一段時間內承受關稅，並且你可以對自己的垂直整合或新供應商進行投資？

Yeah, I kind of like where we sit with our strong US manufacturing base here. I wouldn't want to have to try to invest a bunch of capital to replicate that if I was somebody trying to avoid the tariffs, so I think we sit pretty well there. We do have a factory in China as I mentioned, so we are looking at ways that maybe we can utilize that a little bit more for the Chinese market and maybe perhaps for exporting more into the Asia Pacific region than what we've done historically.

是的，我很喜歡我們在這裡擁有強大的美國製造業基地。如果我是想避免關稅的人，我不會想投入大量資金來複製這種做法，所以我認為我們現在的處境很好。正如我所提到的，我們在中國確實有一家工廠，因此我們正在尋找方法，或許可以更多地利用它面向中國市場，或許可以比過去更多地向亞太地區出口產品。

Our teams are working pretty hard at that stuff. For sure, there's likely a subset of the cost of goods sold that is China right now and we're looking at ways that we can potentially find other sources for those types of components. And again, our teams are working really hard on that as well. I don't know what the tariff situation is going to be tomorrow, let alone three months from now or by the end of the year, but again I think we're hopeful that the temperatures cool off a little bit and that the current level is the worst that is going to be out there.

我們的團隊正在為這些事情努力工作。可以肯定的是，目前銷售商品成本中很可能有一部分來自中國，我們正在尋找可能為這些類型的零件找到其他來源的方法。我們的團隊也正在為此努力。我不知道明天的關稅情況會如何，更不用說三個月後或今年年底的關稅情況了，但我再次認為，我們希望氣溫能稍微下降一點，目前的水平是最糟糕的。

And hopefully, we see some progress and that would cause some of those activities I mentioned to maybe take a different form than what we're looking at right now.

希望我們能看到一些進展，這將導致我提到的一些活動可能採取與我們現在所看到的形式不同的形式。

Okay, all right, great. And then maybe the last one for me, you talked a little bit about April and it sounds like April so far is okay, which is a little bit surprising to me because I thought that you would have -- there was more of a pause going on. I wonder if there's anything anecdotally that you can tell me about, projects and timing or just how your customers are thinking about the projects that they've thought about doing for this year?

好的，好的，太好了。然後也許對我來說是最後一個，你談到了四月，聽起來到目前為止四月還不錯，這讓我有點驚訝，因為我認為你會有 - 有更多的停頓。我想知道您是否可以告訴我一些關於專案和時間安排的趣聞軼事，或者您的客戶如何考慮他們今年想要做的專案？

Yeah, I think we thought it was good to share the data, but when you start to really try to figure out exactly what's going on, we probably aren't going to be able to give you a whole lot there. It is what it is, I think that it's probably better than what some people would have expected it to be, and we thought it was a relevant data point to share with you guys, and we'll just see how things play out here over the next couple of months.

是的，我認為我們認為共享資料是件好事，但是當你開始真正試圖弄清楚到底發生了什麼事時，我們可能無法給你太多資訊。事實就是這樣，我認為它可能比一些人預期的要好，我們認為這是一個值得與你們分享的相關數據點，我們將看看未來幾個月的情況如何。

I do think that in the end, a lot of this has to do with confidence and it's hard to get confident when you don't know which way the world is going to tilt. So hopefully over the next month or so, we get a little bit more consistency and people know the playing field that they're on and that I think will go a long way toward giving people more confidence than maybe what they've had in the last couple of weeks.

我確實認為，最終，這在很大程度上與信心有關，當你不知道世界將如何發展時，很難獲得信心。因此，希望在接下來的一個月左右，我們能夠更加保持一致，人們了解他們所處的競爭環境，我認為這將大大增強人們的信心，也許比過去幾週要多。

I think that's exactly right. While we are certainly what you would consider to be a short cycle company, our customers, especially in the industrial area, are not short cycle buyers. The companies that maybe are pulling trigger, have been pulling trigger in March or April. I'm talking about large manufacturers, automotive, aerospace, farm and construction, and so forth. Internally, they've been working on these projects for nine months a year, even longer, and so they're at the final stage of making a decision and a lot of people have been involved.

我認為這是完全正確的。雖然我們肯定是您認為的短週期公司，但我們的客戶，尤其是工業領域的客戶，並不是短週期買家。那些可能正在採取行動的公司在三月或四月就已經採取行動了。我說的是大型製造商、汽車、航空航太、農場和建築等等。在內部，他們每年花九個月甚至更長的時間來從事這些項目，因此他們正處於決策的最後階段，並且有很多人參與其中。

It would be a little surprising to me if they just pulled the pin because of some disruptive news. Now I guess the converse for that is, as Mark alluded to, if we're playing with uncertainty or approximate levels of uncertainty like we felt like we've experienced the last month, that could have consequences later in the year or next year, but it's a little too early to say that everything is shaken up.

如果他們僅僅因為一些破壞性的消息就撤走保險，那我會感到有些驚訝。現在我想反過來說，正如馬克提到的那樣，如果我們在處理不確定性或大致的不確定性，就像我們上個月所經歷的那樣，這可能會在今年晚些時候或明年產生影響，但現在說一切都被震動了還為時過早。

Okay, great. I appreciate that insight. Thank you.

好的，太好了。我很欣賞這種見解。謝謝。

Matt Summerville, D.A. Davidson.

馬特·薩默維爾，地方檢察官戴維森。

So I just want to get back to the view that there may be a little bit of buy-ahead activity. Are you seeing that uniformly across the businesses and product lines? Or is this relegated to maybe a few key areas inside the company that sort of surge if you want to call it that you've seen in order activity in April thus far? And then I will follow-up.

所以我只是想回到可能存在一點提前購買活動的觀點。您是否在所有業務和產品線上都看到了這一點？或者，這是否可能歸咎於公司內部的幾個關鍵領域，如果您願意的話，您已經看到了 4 月迄今為止的訂單活動的激增？然後我會跟進。

Yeah, no, I think it's kind of been across the board, obviously, our distributors in China would have loved for us to ship them product at the prices that were in existence before these tariffs kicked in and we made it really clear that surcharges, they're going to have to cover so. And that was not included in any of the order activity that I quoted earlier, so I think it's kind of just across the board.

是的，不，我認為這是全面的，顯然，我們在中國的分銷商希望我們以這些關稅生效之前的價格向他們運送產品，並且我們明確表示，他們必須承擔附加費。這並沒有包括在我之前引用的任何訂單活動中，所以我認為這只是全面的。

Of course, we are heading into the key buying season for the contractor business, so that can influence things a little bit too.

當然，我們正進入承包商業務的關鍵採購季節，因此這也會對情況產生一些影響。

Got it. And then just as a follow-up, maybe a little bit more detailed commentary obviously bought Corob a few months ago, but what you're seeing from an M&A standpoint and if the level of buyback activity we've seen year to date out of Graco is suggestive of anything having to do with M&A. So talk about the funnel action ability, things like that.

知道了。然後作為後續，也許更詳細的評論顯然在幾個月前收購了 Corob，但從併購的角度來看，以及我們今年迄今為止看到的 Graco 回購活動的水平是否暗示與併購有關。因此，請談談漏斗行動能力之類的事情。

Yeah, I'll talk about the funnel. David, handle the share buyback. The funnel's good. I think we've really done a nice job. As I said before, building a pipeline of companies that we're very interested in acquiring. I think that there's activity happening all the time. I think our teams are much more engaged and understand how deploying capital into businesses like Corob can help make Graco a larger, more profitable, more meaningful company for our customers.

是的，我會談論漏斗。大衛，負責股票回購。漏斗很好。我認為我們確實做得很好。正如我之前所說，我們正在建立一個我們非常感興趣的收購公司管道。我認為一直都有活動在發生。我認為我們的團隊更加投入，並且了解如何將資金投入像 Corob 這樣的企業中，可以幫助 Graco 成為一家規模更大、利潤更高、對客戶更有意義的公司。

I think that we're very encouraged by what we see in the pipeline. And of course, M&A is always a bit of a wild card but I feel really good about the prospects for us being able to not only execute and transact deals, but also our ability to deliver really good performance on the companies that we've acquired. So we're building that M&A muscle and it's exciting.

我認為，我們對所看到的情況感到非常鼓舞。當然，併購總是有點難以預測，但我對我們的前景感到非常樂觀，我們不僅能夠執行和完成交易，而且還有能力為所收購的公司帶來真正良好的業績。因此，我們正在打造併購實力，這令人興奮。

David, share buyback?

大衛，股票回購？

I think overall, we also feel good about our recent repurchase activity during 2025 and the prices that we've acquired our Graco shares. I think it's worth noting that considering the share -- the small number of relatively small number of shares purchased in '24 and in the current year, we've taken care of about three years of normal share creep.

我認為總體而言，我們對 2025 年的近期回購活動以及收購 Graco 股份的價格感到滿意。我認為值得注意的是，考慮到份額——24 年和今年購買的股票數量相對較少，我們已經解決了大約三年的正常份額攀升問題。

Certainly though, with all of that said, we remain opportunistic as the market offers buyers attractive price points from time to time, as you all well know. Our strong financial position and proven cash generation capacity offers us the flexibility to aggressively invest in our business, to pursue acquisitions along the lines that Mark just talked about, as well as direct our cash flow towards our shareholders with both dividends and buybacks throughout a cycle.

當然，儘管如此，我們仍然保持機會主義，因為正如大家所知，市場不時為買家提供有吸引力的價格點。我們強大的財務狀況和經過驗證的現金創造能力使我們能夠靈活地積極投資於我們的業務，按照馬克剛才談到的方式進行收購，並在整個週期內通過股息和回購將我們的現金流導向我們的股東。

Thank you, guys.

謝謝你們。

If there are no further questions, I will now turn the conference over to Mark Sheahan.

如果沒有其他問題，我現在將會議交給馬克希恩 (Mark Sheahan)。

All right, well, thank you all for participating. We're off to a good start here, at Graco. We have great business and we're continuing to push with our strategic initiatives and look forward to chatting with you next quarter. Have a great day. Thank you.

好的，謝謝大家的參與。在 Graco，我們有了一個好的開始。我們的業務非常好，我們將繼續推進我們的策略舉措，並期待下個季度與您交談。祝你有美好的一天。謝謝。

This concludes our conference for today. Thank you all for participating and have a nice day. All parties may now disconnect.

今天的會議到此結束。感謝大家的參與並祝福大家有個愉快的一天。各方現在都可以斷開連線。