康寧 (GLW) 2013 Q3 法說會逐字稿

Welcome to the Corning Incorporated third-quarter results conference call. It is my pleasure to turn the call over to Ann Nicholson, Division Vice President of Investor Relations.

歡迎參加康寧公司（Corning Incorporated）第三季財報電話會議。我很榮幸將電話會議交給投資人關係事業部副總裁 Ann Nicholson。

Thank you, Lola, and good morning. Welcome to Corning's third-quarter conference call. With me today is Wendell Weeks, Chairman and Chief Executive Officer; and Jim Flaws, Vice Chairman and Chief Financial Officer.

謝謝你，Lola，大家早安。歡迎參加康寧第三季電話會議。今天與我一同出席的有董事長兼執行長 Wendell Weeks，以及副董事長兼財務長 Jim Flaws。

Before we begin our formal comments, I would like to remind you that today's remarks contain forward looking statements that fall within the meaning of the Private Securities Litigation Reform Act of 1995. These remarks involve a number of risks, uncertainties and other factors that could cause actual results to differ materially. These factors are detailed in the Company's SEC reports. You should also note that this presentation contains a number of non-GAAP measures. A reconciliation can be found on our website.

在我們開始正式發言之前，我想提醒各位，今天的談話包含前瞻性陳述，屬於 1995 年《私人證券訴訟改革法》（Private Securities Litigation Reform Act of 1995）所定義的範圍。這些陳述涉及多項風險、不確定性及其他因素，可能導致實際結果出現重大差異。相關因素已在本公司向美國證券交易委員會（SEC）提交的報告中詳述。也請注意，本簡報包含若干非 GAAP 指標。相關調節表可在我們的網站上查閱。

Now I will turn the call over to Jim.

現在我把電話會議交給 Jim。

Thanks, Ann. Good morning, everyone. Today I'll be focusing mainly on our results for Quarter 3 and our outlook for Quarter 4. However, we had a significant announcement last week, so I'll quickly recap that news and how it fits into our corporate strategy. Corning is a Company with a long history in a clear strategic framework, which has three main components. First, we grow primarily through global innovation. And because our innovation, our operating leverage bring risks. We also work to bring stability and balance to the Company with conservative financial strategies and a broad portfolio of businesses that participate in diverse markets. Finally, we proactively live our values.

謝謝你，Ann。各位早安。今天我將主要聚焦於第三季的業績以及第四季的展望。不過，我們上週有一項重大公告，因此我會先快速回顧該消息，以及它如何融入我們的公司策略。康寧是一家擁有悠久歷史、並遵循清晰策略框架的公司；該框架包含三個主要組成部分。第一，我們主要透過全球創新來成長。而由於我們的創新與營運槓桿會帶來風險，我們也透過保守的財務策略，以及參與多元市場的廣泛事業組合，為公司帶來穩定與平衡。最後，我們主動實踐我們的價值觀。

Last week we announced a series of agreements with Samsung that included an expanded technology collaboration and attaining full ownership of SCP. We also announced incremental returns to shareholders with the new stock repurchase program. Last week's announcement fits very well within our strategic framework. First, it is outstanding financial transaction for the Company and for our shareholders, with strong accretion and increased cash flow. We will be putting that financial strength to work for shareholders immediately with the new buyback program.

上週我們宣布與三星（Samsung）達成一系列協議，包括擴大技術合作並取得 SCP 的完全所有權。我們也透過新的庫藏股回購計畫，宣布對股東提供額外回饋。上週的公告非常符合我們的策略框架。第一，這是一項對公司與股東都極為出色的財務交易，具備強勁的增厚效益並提升現金流。我們將透過新的回購計畫，立即把這項財務實力用於回饋股東。

Second, it strengthens our LCD business worldwide with cost reduction opportunities, provides a simpler go-to-market approach and allows future lower capital spending. It enhances our ability to service all of our glass customers, including specialty materials Gorilla Glass customers. It enhances our 40-year relationship with Samsung and it preserves Corning's independence, allowing us to work with all customers.

第二，它透過成本降低機會強化我們在全球的 LCD 業務，提供更簡化的市場進入（go-to-market）方式，並使未來資本支出得以降低。它提升我們服務所有玻璃客戶的能力，包括特殊材料事業的 Gorilla Glass 客戶。它強化我們與三星長達 40 年的合作關係，並維持康寧的獨立性，使我們能與所有客戶合作。

This slide recaps the major elements of our announcement. Corning will become 100% owner of SCP's LCD business. We will have a 10-year supply agreement with Samsung for LCD glass. We will expand our collaboration on technology development. Samsung will directly invest $400 million in Corning.

本投影片回顧我們公告的主要要素。康寧將成為 SCP LCD 業務的 100% 持有人。我們將與三星簽訂為期 10 年的 LCD 玻璃供應協議。我們將擴大在技術開發上的合作。三星將直接投資 4 億美元於康寧。

And finally we have authorized $2 billion in an additional share repurchase, which is effective upon closing, which is expected to occur during the first quarter 2014. This new share repurchase will offset the dilution from the common shares embedded in the convertible preferred shares issued to Samsung. Resulting impact to our core financial statement is expected to be approximately $2 billion increase in sales, $350 million in incremental NPAT and an additional $500 million per year of free cash flow. When you include the impact to the share repurchases, total accretion to EPS on a fully-diluted basis is approximately 20% in 2014 and 2015.

最後，我們已核准額外 20 億美元的股票回購，該回購將於交易完成時生效；預計交易將於 2014 年第一季完成。這項新的股票回購將抵銷發行給三星之可轉換特別股中所內含普通股所造成的稀釋。對我們核心財務報表的預期影響約為：銷售額增加約 20 億美元、NPAT 增加 3.5 億美元，以及每年額外增加 5 億美元的自由現金流。若再納入股票回購的影響，以完全稀釋基礎計算，2014 年與 2015 年對 EPS 的總增厚效益約為 20%。

Before I jump into the quarterly details, I'd like to remind you we provide our results on a core earnings basis in order to exclude non-performance related items and increase transparency of our operating results. Core financial measures are non-GAAP and of course we continue to report our GAAP results. You can find detailed reconciliations on our website outlining the differences between these non-GAAP measures and the most directly comparable GAAP measure.

在我進入季度細節之前，我想提醒各位：我們以核心盈餘（core earnings）基礎提供業績，以排除與經營表現無關的項目並提高營運結果的透明度。核心財務指標屬於非 GAAP，當然我們也會持續揭露 GAAP 業績。您可在我們網站上找到詳細調節表，說明這些非 GAAP 指標與最直接可比的 GAAP 指標之間的差異。

Let's turn to the third quarter. Please to say our third-quarter results were very strong. We experienced some headwinds in certain portions of the Company compared to our expectations entering the quarter. However, thanks to excellent operational execution and cost control, we delivered a fourth consecutive quarter of year over year strong EPS growth. In total, we delivered 17% growth in NPAT, 18% growth in earnings per share on a 10% increase in sales.

我們來看第三季。很高興地說，我們第三季的業績非常強勁。相較於我們在季初的預期，公司某些部分面臨一些逆風。然而，憑藉卓越的營運執行與成本控管，我們連續第四季繳出年對年強勁的 EPS 成長。整體而言，在銷售額成長 10% 的帶動下，我們實現 NPAT 成長 17%，每股盈餘成長 18%。

Display technologies continues to regain positive momentum. During the quarter we renewed the contracts that we had announced at this time last year. We think this is a very positive signal for our display business. LCD glass price declines were again moderate in Q3, as expected. Looking ahead, we expect Q4 price declines to be in the same moderate range as Q3 and our market share to remain stable going forward.

顯示科技事業持續恢復正向動能。本季我們續約了去年此時所宣布的合約。我們認為這對顯示業務而言是非常正面的訊號。如預期，第三季 LCD 玻璃價格下滑幅度再次維持溫和。展望未來，我們預期第四季價格下滑幅度將與第三季同樣維持在溫和區間，且我們的市占率未來將保持穩定。

And our other businesses also performed well during the quarter. Telecom nearly doubled net income year over year on a 24% increase in sales, specialty materials had sequential profitability gains, driven by Gorilla Glass manufacturing and sales. Lastly environmental had year over year net income expansion, despite lackluster demand for environmental products and diesel. Overall we are pleased with the third quarter.

我們其他事業在本季也表現良好。電信事業在銷售額成長 24% 的帶動下，年對年淨利幾乎翻倍；特殊材料事業的獲利能力較前一季提升，主要由 Gorilla Glass 的製造與銷售所驅動。最後，儘管環境產品與柴油需求疲弱，環境事業的年對年淨利仍有所擴張。整體而言，我們對第三季表現感到滿意。

Now I'd like to turn to our Quarter 3 core earnings results. Sales were $2.1 billion, up 10% versus a year ago. Gross margin was 44% up 1.5 points year over year, better than our expectation, driven by additional volume in display. Gross equity earnings of $121 million were down 30% versus a year ago. As a reminder, the SCP portion of this is at a constant yen. I'll provide more color on equity earnings in a few minutes.

接下來我想談談第三季核心盈餘結果。銷售額為 21 億美元，較去年同期成長 10%。毛利率為 44%，年對年上升 1.5 個百分點，優於我們的預期，主要由顯示業務額外出貨量所帶動。權益法投資毛利（gross equity earnings）為 1.21 億美元，較去年同期下降 30%。提醒各位，其中 SCP 的部分是以固定日圓匯率計算。我會在幾分鐘後就權益法收益提供更多說明。

Our core effective tax rate for Q3 was 18%. We now forecast the full-year core effective tax rate to be approximately 17%. Finally, core earnings per share were $0.33, up $0.05 over a year ago. Versus a year ago, SG&A was down in absolute dollars and as a percentage of sales. And R&D spending was also down as a percentage of sales.

第三季核心有效稅率為 18%。我們目前預估全年核心有效稅率約為 17%。最後，核心每股盈餘為 0.33 美元，較去年同期增加 0.05 美元。與去年同期相比，SG&A（銷售、一般及行政費用）以絕對金額計下降，且占銷售額比重也下降。研發（R&D）支出占銷售額比重亦下降。

I will turn to our segments and I will start with display. We believe the overall glass market was up slightly in the quarter. Sequentially Corning and SCP 's combined volume grew by low single digits. Overall, our market share remains stable. Core sales for display were $689 million in Q3, an increase of 7% versus last year. Price declines were similar to Q2 and in the range we expected. Core gross equity earnings from our display equity affiliates, which includes Samsung Corning Precision and also our OLED glass venture, Samsung Corning Advanced Glass, were $85 million in Q3, a decrease of 40% year over year and down 27% sequentially.

接下來我將談各事業部門，並先從顯示業務開始。我們認為本季整體玻璃市場小幅成長。就季對季而言，康寧與 SCP 合併後的出貨量成長為低個位數百分比。整體而言，我們的市占率仍保持穩定。第三季顯示業務核心銷售額為 6.89 億美元，較去年同期成長 7%。價格下滑幅度與第二季相近，且落在我們預期的範圍內。第三季來自顯示業務權益法關聯企業的核心權益法收益（包括 Samsung Corning Precision，以及我們的 OLED 玻璃合資企業 Samsung Corning Advanced Glass）為 8,500 萬美元，年對年下降 40%，且季對季下降 27%。

Lower year over year volume of LCD glass, price declines and a higher tax rate impacted SCP's results versus the prior year. The sequential decline was driven by more moderate sequential price declines and lower inter-company glass sales and some foreign exchange impact. For modeling purposes, display equity affiliate's third-quarter display glass sales in constant yen were about $509 million, a decrease of 19% from last year. As a reminder, this represents EAGLE XG and Lotus Glass sales only. Our public filings report our display equity affiliates total sales, which include various other products.

LCD 玻璃年對年出貨量下降、價格下滑以及較高的稅率，影響了 SCP 相較於去年同期的業績表現。季對季下滑主要是由於價格季對季下跌幅度較為溫和、公司間玻璃銷售較低，以及部分外匯影響所致。就建模而言，以固定日圓計，顯示事業權益法被投資公司第三季顯示玻璃銷售額約為 5.09 億美元，較去年下降 19%。提醒一下，這僅代表 EAGLE XG 與 Lotus Glass 的銷售。我們的公開申報文件揭露顯示事業權益法被投資公司的總銷售額，其中包含多種其他產品。

Now when we consolidate sales from our acquisition of SCP, we will be reporting their LCD glass sales in our display technology segment results. Sales from SCG and other products remain excluded in the equity earnings from those non-LCD glass entities will remain in the equity earnings line. Equity earnings from those affiliates would have been immaterial in Q3. Display's core net income was $304 million, down 9% versus last year, however without the equity earnings display's net income would have been up approximately 14%.

現在，當我們將收購 SCP 的銷售額納入合併報表後，我們將在顯示技術事業部的業績中報告其 LCD 玻璃銷售。SCG 與其他產品的銷售仍不納入；來自那些非 LCD 玻璃實體的權益法收益仍將列在權益法收益項下。第三季來自那些關聯企業的權益法收益本來就不具重大性。顯示事業核心淨利為 3.04 億美元，較去年下降 9%；然而若不計入權益法收益，顯示事業淨利將約增加 14%。

Strong wholly-owned results reflect increased sales and solid cost reduction efforts. Our wholly owned display business increased gross margin slightly on a year over year basis. On the supply chain front we estimate the forward-looking weeks of inventory contracted to 16 weeks in Quarter 3 as we expected. This drop is due primarily to the higher seasonal volume in Q4. We expect that the absolute level inventory will decline significantly in Q4 and that forward-looking weeks of inventory will be approximately 15.5 weeks at the end of Q4.

全資業務的強勁表現反映銷售增加以及紮實的成本降低努力。我們全資的顯示業務毛利率年對年略有提升。在供應鏈方面，我們估計如預期在第三季，前瞻性庫存週數收斂至 16 週。此下降主要是因為第四季季節性出貨量較高。我們預期第四季的絕對庫存水位將顯著下降，且在第四季末前瞻性庫存週數約為 15.5 週。

Now let me turn to telecom. Q3 sales were $650 million, that was up 24% year over year and slightly better than our expectation of 20%. The majority of the year over year increase was due to carrier growth in North America and EMEA as well as enterprise growth in North America, which more than offset year over year declines in China fiber sales. The China fiber market was softer than expected in Q3 and we believe this will continue through Q4. I'll give some more detail on this in our outlook. The consolidation of previous equity affiliates and a small acquisition also contributed to sales growth year over year. Telecom's year over year net income was up 86%. Earnings improvement was driven by the higher volume and also cost reductions in manufacturing and SMSA.

接下來談電信。第三季銷售額為 6.50 億美元，年對年成長 24%，略優於我們原先預期的 20%。年對年增幅的大部分來自北美與 EMEA 的電信營運商成長，以及北美企業客戶成長，這些成長足以抵銷中國光纖銷售年對年下滑。第三季中國光纖市場疲弱程度高於預期，我們認為此情況將延續至第四季。我會在展望部分提供更多細節。先前權益法被投資公司的併入合併，以及一項小型收購，也對年對年銷售成長有所貢獻。電信事業年對年淨利成長 86%。獲利改善主要由較高出貨量帶動，並且來自製造與 SMSA 的成本降低。

In environmental, Q3 sales were down 3% year over year and slightly below our expectations. Light-duty diesel sales were down versus last year on the weak European auto market. And the US class 8 truck demand at retail and build rate remains soft. Light-duty substrate sales were consistent with Quarter 3 of a year ago. Now despite the environmental sales decline, net income was up 19% year over year, driven by improved manufacturing performance and cost reductions and operating expense.

在環境科技方面，第三季銷售額年對年下降 3%，且略低於我們的預期。受歐洲汽車市場疲弱影響，輕型柴油相關銷售較去年下滑。美國 8 級卡車的零售需求與生產（build）速度仍然疲弱。輕型載體（substrate）銷售與去年第三季大致一致。儘管環境科技銷售下滑，淨利年對年仍成長 19%，主要受益於製造表現改善、成本降低以及營業費用下降。

Specialty materials Q3 sales were up 8% sequentially as expected, and Gorilla delivered on its sequential growth target in the quarter. This is down approximately from 10% last year, due to our continued working off of extra supply chain inventory that was built during Q4 of 2012. We've been dealing with this work-off of inventory every quarter this year and expect to be past the issue after Q4. The good news is at a consumption level, glass usage going to retail has been up more than 30% this year. Core net income was consistent with last year. Gorilla Glass manufacturing improvements offset year over year segment sales decline. We are very, very pleased with the improvement in Gorilla's manufacturing efficiency over the last several quarters.

特殊材料第三季銷售額如預期季對季成長 8%，Gorilla 在本季達成其季對季成長目標。相較去年約 10% 的成長率有所下降，原因是我們持續消化於 2012 年第四季建立的額外供應鏈庫存。今年每一季我們都在處理這項去化庫存的工作，並預期在第四季後可走出此議題。好消息是，以終端消費層級來看，今年流向零售端的玻璃使用量已成長超過 30%。核心淨利與去年持平。Gorilla Glass 的製造改善抵銷了事業部銷售年對年下滑的影響。我們對過去幾季 Gorilla 製造效率的提升感到非常、非常滿意。

In life sciences, Q3 sales were up 39% year over year due to the additional sales from the Discovery Labware acquisition, which closed on October 31 last year. Year over year core net income was up 156%. After one full year of ownership we are very happy with the progress of the Discovery Labware integration and it's positive impact on earnings. We did feel some effects of the continuing government sequestration in this business. We estimate the impact on sales in the quarter was somewhere between $5 million and $10 million.

在生命科學方面，第三季銷售額年對年成長 39%，主要因為 Discovery Labware 收購案帶來的額外銷售；該交易於去年 10 月 31 日完成。核心淨利年對年成長 156%。在持有滿一年後，我們對 Discovery Labware 整合進展及其對獲利的正面影響感到非常滿意。我們確實感受到政府持續預算刪減（sequestration）對此業務的一些影響。我們估計本季對銷售的影響約介於 500 萬至 1,000 萬美元之間。

Turning to Dow Corning, gross equity earnings for silicones were $28 million in Q3, consistent with last year and better than expected, driven by some favorable one-time items of approximately $14 million. Sales were down slightly year over year and pricing issues continue primarily in Asia. Although we're not including Hemlock in our core earnings this year, Hemlock was cash flow positive and we have been encouraged by some elements of Hemlock's performance.

接著談 Dow Corning，第三季矽利康（silicones）的權益法毛收益為 2,800 萬美元，與去年持平且優於預期，主要受約 1,400 萬美元的一次性有利項目帶動。銷售額年對年略為下降，定價問題仍持續，主要發生在亞洲。雖然今年我們未將 Hemlock 納入核心盈餘，但 Hemlock 的現金流為正，我們也對 Hemlock 表現中的某些面向感到鼓舞。

Our balance sheet is strong, we ended the third quarter with $5.4 billion in cash and short-term investments with about $1.6 billion of that total in the United States. Our net cash position is $2.6 billion. Capital spending was $244 million in the quarter. We now expect our total capital spending for the year to be $1.1 billion, down from our previous forecast of $1.3 billion. Free cash flow for the quarter was $268 million.

我們的資產負債表依然強勁，第三季末現金與短期投資為 54 億美元，其中約 16 億美元位於美國。我們的淨現金部位為 26 億美元。本季資本支出為 2.44 億美元。我們目前預期全年資本支出總額為 11 億美元，低於先前預估的 13 億美元。本季自由現金流為 2.68 億美元。

As a reminder, free cash flow is a non-GAAP measure and a reconciliation to GAAP can be found on our website. You may recall late April we had announced an 11% common stock dividend and a new $2 billion stock buyback program. During Quarter 3 we repurchased $209 million of our stock. Year-to-date purchases on the April program are $441 million.

提醒一下，自由現金流為非 GAAP 指標，與 GAAP 的調節表可在我們網站上查閱。您可能記得在 4 月下旬我們宣布普通股股利提高 11%，並推出新的 20 億美元庫藏股回購計畫。第三季我們回購了 2.09 億美元的自家股票。截至目前，4 月計畫下的累計回購金額為 4.41 億美元。

Now I will turn to our Outlook. As we mentioned in our pre-release last week, Quarter 4 has normally had some seasonal down ticks in several of our businesses. Longtime followers of Corning know the telecom pattern is usually seasonably down in Q4. Last year, 2012, we did not follow that pattern due to hurricane Sandy and the NBN ramp in Australia. However, we are expecting the normal seasonal downturn in telecom this year and that will be amplified by some specific items in telecom in other businesses. These are likely to result in lower sequential earnings.

接下來我談我們的展望。如同我們上週在預先發布中提到的，第四季通常在我們若干業務中會出現一些季節性的下滑。長期關注 Corning 的投資人都知道，電信業務的型態通常在第四季呈現季節性走弱。去年 2012 年，由於颶風 Sandy 以及澳洲 NBN 的加速建置，我們並未遵循該型態。然而，今年我們預期電信將出現正常的季節性下滑，且這一情況將因電信及其他業務中的一些特定事項而被放大。這些因素很可能導致季對季獲利下降。

Also embedded in this outlook is our expectation of a slight pullback on display glass demand versus Q3. We did not express a pullback in Quarter 4 of 2012. Our year over year earnings comparison will be influenced for some of the same reasons but also for some different ones. We had a significant supply chain inventory build in Gorilla Glass in Quarter 4 last year that will not repeat.

此外，本次展望也納入我們對顯示玻璃需求相較第三季略為回落的預期。在 2012 年第四季，我們並未表達需求回落。我們的年對年獲利比較將受到部分相同原因的影響，但也會受到一些不同因素影響。去年第四季我們在 Gorilla Glass 有顯著的供應鏈庫存建立，今年不會重演。

I will turn to display Outlook. Let me start with the current view of the end market in 2013. Expect the retail market as measured in square feet of glass to be up mid to high single-digits. Right now it currently looks tracking to be at the high end of that forecast. This is predominantly driven by the increase in the average screen size of televisions. Worldwide unit sales of 50-inch plus televisions are up 93% year to date.

我接著談顯示事業的展望。先從 2013 年終端市場的目前看法開始。預期以玻璃平方英尺衡量的零售市場將呈現中到高個位數成長。目前看起來正朝該預測區間的高端發展。這主要由電視平均螢幕尺寸增加所驅動。全球 50 吋以上電視的年初至今（YTD）銷量成長 93%。

The television market in China continues to meet our expectations. Sales of televisions to Chinese National Day holiday were as we expected. Many industry analysts are describing the sales in China in the back half of this year as disappointing. Please recall that we had forecasted the end of the China television subsidy, and for retail sell-through area demand, area to be up only 5% in the second half.

中國的電視市場持續符合我們的預期。中國國慶假期期間的電視銷售如我們所預期。許多產業分析師形容今年下半年中國的銷售表現令人失望。請回想，我們先前已預測中國電視補貼的結束，而就零售端的實際銷售（sell-through）而言，我們預期下半年需求僅成長5%。

Let me turn to Quarter 4. For the LCD glass market we'll be down slightly. We expect our wholly-owned display business and SCP combined volumes to be down slightly from Q3 but share to remain stable. Inventory build-up from earlier this year is expected to feed the higher retail demand in Q4. For our panel maker utilizations, we expect the supply chain inventory to reduce by approximately half a week from 16 weeks of inventory to 15.5. We estimate LCD glass price declines to be moderate in Q4 and a similar moderate rate to Q3.

我來談第四季。LCD玻璃市場我們將小幅下滑。我們預期自有顯示事業與SCP合併後的出貨量將較第三季小幅下降，但市占率維持穩定。預期今年稍早累積的庫存將用以支應第四季較高的零售需求。就面板廠稼動率而言，我們預期供應鏈庫存將從16週降至15.5週，約減少半週。我們估計第四季LCD玻璃價格下跌幅度將屬溫和，與第三季相近的溫和速度。

I'll spend a little extra time on telecom's forecast today to make sure you understand the current dynamics. The call last year, our telecom sales in Q4 did not decline sequentially. This is because of the disaster recovery efforts from hurricane Sandy increased Quarter 4, 2012 sales in North America. And our fiber to the home sales to NBN ramped strongly in Quarter 4 a year ago.

今天我會在電信業務的預測上多花一點時間，確保各位理解目前的動態。回到去年的電話會議，我們第四季的電信銷售並未較前一季下滑。這是因為颶風桑迪的災後復原工作，使2012年第四季北美銷售增加。此外，我們對澳洲NBN的光纖到府（FTTH）銷售在去年第四季也強勁爬升。

In contrast, this year our sales in North America were at actually an all time high in Q3. Our fiber to the home sales in Australia's NBN initiative were expected to ramp over the course of 2013 versus 2012, but construction delays have gotten worse and slowed the ramp. We expect Q4 sales in Australia to be down significantly year over year. Worldwide carrier sales are expected to be up 10% versus last year.

相較之下，今年我們在北美的銷售其實在第三季創下歷史新高。我們原本預期澳洲NBN計畫的光纖到府銷售在2013年相較2012年會逐步爬升，但施工延誤惡化，放慢了爬升速度。我們預期澳洲第四季銷售將較去年同期大幅下滑。全球電信營運商（carrier）銷售預期將較去年成長10%。

The fiber market in 2013 has not materialized as we had expected. Optical fiber market had grown by an average volume of 16% the last decade and has that record highs for each of the last 6 years. We had expected 5% to 10% market growth for 2013, but now believe the 2013 fiber market will be flat. North America declined more than expected, China is flat and we observed contractions in some other key markets. While we're still assessing our view of the 2014 market, inventory has been increasing in certain locations due to that flat 2013 market demand.

2013年的光纖市場並未如我們預期般實現。過去十年光纖市場平均每年以16%的量成長，且過去6年每一年都創下歷史新高。我們原先預期2013年市場成長5%到10%，但現在認為2013年光纖市場將持平。北美下滑幅度超出預期，中國持平，我們也觀察到其他一些關鍵市場出現萎縮。雖然我們仍在評估對2014年市場的看法，但由於2013年需求持平，部分地區的庫存正在增加。

For Quarter 4 we expect telecom sales to be down low single-digits versus last year. In total for the year, we expect 5% sales growth in telecom, driven primarily by fiber to the home and enterprise projects. In environmental we expect Q4 sales to be up slightly versus Q4 of 2012, driven by a heavy-duty diesel market in China and Europe. We believe the tighter regulations in Europe and China will lead to growth in demand for heavy-duty diesel products as we enter 2014. Full year sales environmental segment are expected to be down approximately 5% year over year, driven by the softness in light-duty diesel market in Europe and heavy-duty diesel in North America.

第四季我們預期電信銷售將較去年下滑低個位數百分比。全年合計，我們預期電信業務銷售成長5%，主要由光纖到府與企業專案帶動。環境事業方面，我們預期第四季銷售將較2012年第四季小幅成長，主要受中國與歐洲重型柴油市場帶動。我們相信歐洲與中國更嚴格的法規，將在進入2014年時帶動重型柴油產品需求成長。環境事業全年銷售預期將較去年下滑約5%，主要受歐洲輕型柴油市場疲弱，以及北美重型柴油市場疲弱所影響。

Specialty material sales are expected to be consistent sequentially but down 20% year over year in Q4, due to an inflated Q4 2012 by the previously mentioned inventory build in Gorilla Glass. Expect advanced optics sales to be up year over year as demand for semiconductor industry continues to improve. Gorilla Glass sales are down year over year due to IT hand-held supply chain over-build in Q4 2012. This chart shows the cover glass sales volume versus industry consumption for IT and hand-held in square feet.

特殊材料（Specialty Materials）第四季銷售預期與前一季大致持平，但較去年同期下滑20%，原因是2012年第四季因先前提到的Gorilla Glass庫存建立而被墊高。先進光學（Advanced Optics）銷售預期將較去年同期成長，因半導體產業需求持續改善。Gorilla Glass銷售較去年同期下滑，原因是2012年第四季IT手持裝置供應鏈過度備貨。此圖表顯示IT與手持裝置的蓋板玻璃銷售量相對於產業消耗量（以平方英尺計）。

Q4 demand is up nicely year over year but the over-build in Q4 of 2012 puts our volume down versus last year. Gorilla Glass 2013 sales volume is expected to be down 15% for us, due to the fact that last year's inventory build. Adding to that decline is the lower large cover glass sales year over year. Full-year we expect specialty materials sales to be down mid single-digits, driven by the impact of the supply chain build up and lower demand for large cover glass. However, Gorilla profitability improved nicely this year and we expect net income to be up slightly.

第四季需求較去年同期明顯成長，但2012年第四季的過度備貨使我們的出貨量較去年下降。我們預期2013年Gorilla Glass銷售量將下滑15%，原因在於去年的庫存建立。此外，較去年同期更低的大尺寸蓋板玻璃銷售也加劇了這一下滑。全年而言，我們預期特殊材料銷售將下滑中個位數百分比，主要受供應鏈備貨影響以及大尺寸蓋板玻璃需求較低所致。不過，Gorilla今年的獲利能力明顯改善，我們預期淨利將小幅上升。

In life sciences we expect sales to be down 10% year over year, mostly due to the full three months of added sales from our acquisition versus the partial quarter of 2012. Did I say down? Up 10%. Dow Corning expects earnings from its silicone segment to be similar to Q3. Expect our core gross margin be consistent year over year at 42%. SG&A is expected to be 15% of sales and R&D 9% of sales.

生命科學方面，我們預期銷售將較去年同期下滑10%，主要是因為我們的收購案帶來的新增銷售在本季完整反映三個月，而2012年僅反映部分季度。我剛剛說下滑嗎？是成長10%。Dow Corning預期其矽膠事業的獲利將與第三季相近。我們預期核心毛利率將與去年同期一致，為42%。SG&A預期為銷售額的15%，研發（R&D）為銷售額的9%。

Core equity earnings expect to be down about 20% versus last year. SCP is expected to be the main driver caused by year over year price and volume declines. Expect our core effective tax rate for 2013 to be about 17%. That concludes my opening comments. Ann?

核心權益法收益（core equity earnings）預期將較去年下滑約20%。SCP預期將是主要驅動因素，原因在於價格與出貨量較去年同期下滑。我們預期2013年核心有效稅率約為17%。以上是我的開場評論。Ann？

Thank you, Jim. Lola, we will open the lines now for questions.

謝謝你，Jim。Lola，我們現在開放電話線供提問。

(Operator Instructions)

（接線員指示）

Rod Hall, JPMorgan.

Rod Hall，摩根大通（JPMorgan）。

I wanted to kick off, Jim, with a little bit of further color on inventory. Inventory was pretty volatile this year. We got to the reduction that you'd called for the end of the year, or at the beginning of this year, but it's more than I think you guys were anticipating.

Jim，我想先從庫存再多了解一些細節。今年庫存波動相當大。我們確實達到你們在去年底、或今年初所提到的庫存降低目標，但降幅似乎比你們原先預期的還要大。

And I wonder if you could talk about the sustainability of these inventory levels in 2014? Should we still be expecting a half a week reduction over 2014? Do you think if we hold at these levels, what you are thinking there.

我想請你談談這些庫存水位在2014年的可持續性？我們是否仍應預期2014年再減少半週？如果我們維持在目前水位，你們的想法是什麼。

Also on the CapEx, just a clarification. Is the new CapEx number now including the elimination of that Chinese plant build or is that still yet to come?

另外關於資本支出（CapEx），想請澄清一下。新的CapEx數字是否已包含取消中國工廠建置的影響，還是那部分尚未反映？

On optical, if you could talk a little bit about -- if there is any more color you could give us in terms of what is going on in North America? Is this a single carrier effect that you are seeing? Or is it more broad-based in terms of what is happening with optical fiber demand? Thanks.

關於光學（optical），如果可以的話，請再多談一些北美目前發生了什麼——你們看到的是單一電信營運商的影響嗎？還是說在光纖需求方面，是更廣泛性的趨勢？謝謝。

Okay, that is a lot of questions. On inventory in the display industry, inventory in absolute terms built as we marched through quarter one and quarter two significantly, and somewhat in quarter three. At the end of quarter two we got to 18 weeks, and now we're at 16.

好的，問題很多。就顯示產業的庫存而言，第一季與第二季庫存以絕對量來看大幅增加，第三季也有些增加。第二季末我們達到18週，而現在是16週。

As we do that, we are always forward looking. So the drop of from 18 to 16 really reflects the fact that Q4 forward-looking volume is always so much higher.

在我們這麼做的同時，我們一向以前瞻角度來看。因此，從18降到16，主要反映的是：第四季的前瞻出貨量一向高得多。

In quarter four what we expect is the absolute amount of inventory to drop. We look forward-looking relative to Q1, and think will be a little below 16 at 15.5.

在第四季，我們預期庫存的絕對金額會下降。我們以前瞻角度相對於第一季來看，認為會略低於16，約為15.5。

It is our expectation right now that there is no reason for the inventory to be very different from this 15.5 to 16. Frankly, our precision on our accuracy on ability to do the half a week is pretty suspect. I would say we are delighted by the fact that we think we are back at that 16 level and maybe 15.5, because as you know, we didn't like being at 18.

我們目前的預期是，庫存沒有理由會與15.5到16這個水準有很大差異。坦白說，我們在精準度上、對於能否精確到半週的準確性其實相當可疑。我會說，我們很高興我們認為已回到16左右、甚至15.5，因為如你所知，我們不喜歡在18的水準。

Relative to the CapEx question, Rod, the $1.1 billion is the forecast for this year. You may recall the China television plant was never in Corning's wholly-owned numbers. So you would not be seeing that in any of the guidance that we would have been talking about.

關於資本支出（CapEx）問題，Rod，11億美元是我們對今年的預測。你可能記得，中國電視面板廠從來不在康寧的全資擁有數字之內。因此，你不會在我們所談的任何指引中看到那部分。

The drop from $1.3 billion to $1.1 billion reflects two elements. One, we're always a little slower on capital spending than what we think we're going to be. And second, we are pacing, given the slightly moderate, more moderate sales growth than what we expected.

從13億美元降到11億美元反映了兩個因素。第一，我們的資本支出通常都會比我們原先以為的進度稍慢一些。第二，鑑於銷售成長略為趨緩、比我們預期更溫和，我們也在調整投資節奏。

That's probably split about half and half. But the China was not a factor in that at all. Wendell, you want to comment on optical in North America?

這大概各占一半一半。但中國那部分完全不是因素。Wendell，你要評論一下北美的光纖（optical）嗎？

Sure. In North America, what we saw was this year the end of the stimulus program. And that is what has led to the lower volume levels.

當然。在北美，我們看到的是今年刺激方案結束。而這就是導致出貨量水準較低的原因。

We had expected that after -- we did expect the stimulus to end and the volumes to drop as a result. But it was what base would it return to? And we had expected the base to have shown a little more growth than what we are currently forecasting.

我們原本就預期刺激方案結束、出貨量會因此下滑。但問題在於會回到什麼樣的基準水準？而我們原本預期這個基準水準會比我們目前所預測的呈現更多成長。

On a longer-term basis, we're pretty bullish on North America. If you're a close watcher of the space, you will have seen comments from a major carrier. Them getting more aggressive on fiber to the home, which we take as very encouraging.

從較長期來看，我們對北美相當樂觀。如果你密切關注這個領域，你應該已看到一家主要電信業者的評論。他們在光纖到府（FTTH）方面變得更積極，我們認為這非常令人鼓舞。

Great, thank you, guys.

很好，謝謝各位。

Mark Sue, RBC capital markets.

RBC Capital Markets 的 Mark Sue。

The pricing display glass seems to have been moderate for numerous quarters now. With Samsung a stronger partner and an important shareholder, can we call victory on pricing? Will moderate pricing prevail?

顯示器玻璃的定價似乎已經連續好幾季都相對溫和。在三星成為更強的合作夥伴且也是重要股東的情況下，我們是否可以說定價已經勝利了？溫和的定價是否會持續？

Perhaps what has been the response from non-Samsung customers? And if that is the swing factor to watch in terms of pricing as we move into 2014? Then, Jim, an overall early read as we look into next year, how you feel about global demand for display glass?

另外，非三星客戶的反應如何？而這是否會是我們在邁入2014年時、就定價而言需要觀察的關鍵變數？再來，Jim，從整體上看、展望明年，你對全球顯示器玻璃需求的初步判讀如何？

And then, Wendell, a follow-up on your question. If the fiber may have peaked due to the lack of stimulus now here in North America, and if I look at some of the big projects overseas, that seems to be winding down. How should we think about the demand for fiber? Is that a trough year that we should be entering into? Thank you.

然後，Wendell，延續你剛才的問題。如果因為北美目前缺乏刺激方案而使光纖需求可能已見頂，而我再看一些海外大型專案似乎也在收尾。我們應該如何看待光纖需求？我們是否正要進入一個谷底年？謝謝。

I will start and then turn it over to Wendell. On the pricing for LCD glass, I don't think you can declare permanent victory. We have to remain ever vigilant about this. We're obviously delighted by what you mentioned, Mark, with the number of quarters we now had a moderate level.

我先回答，然後再交給 Wendell。關於LCD玻璃的定價，我不認為可以宣告永久勝利。我們必須始終保持高度警覺。如你所提，Mark，我們當然很高興，因為我們已經有好幾季維持在溫和的水準。

I would call your attention also to something we announced this morning. That is the renewal of the agreements that we announced last October, which had the structure at certain customers where our position was determined by the contract, and the pricing would be related at that customer would be done by what the competition did to that customer. We were very excited to have those be renewed for this upcoming year of 2014. In some cases we now have contracts that extend beyond 2014.

我也想請你注意我們今天早上宣布的一件事。也就是我們續約了去年10月宣布的協議；其架構是在特定客戶那裡，我們的供應地位由合約決定，而在該客戶的定價則會依競爭對手對該客戶的作法而定。我們非常興奮能把這些協議續約到即將到來的2014年。在某些情況下，我們現在的合約甚至延伸到2014年之後。

I will never spike the ball in victory, but we really have made a lot of progress. Wendell, let me take the early read on 2014 and then I will turn it over to you for the comments on what other customers are saying about the Samsung agreements.

我永遠不會在勝利時把球高高拋起慶祝，但我們確實已取得很大進展。Wendell，讓我先談談對2014年的初步判讀，然後再交給你評論其他客戶對三星協議的看法。

Our early read right now, Mark, is that we're heading into 2014 in a pretty good position in display. If our expectation is right, that there is a little pullback in utilization in Q4, at panel makers, we think that makes the inventory situation be very good heading into next year.

Mark，我們目前的初步判讀是，進入2014年時，我們在顯示器業務上處於相當不錯的位置。如果我們的預期正確，也就是面板廠在第四季的稼動率會稍微回落，我們認為這會讓庫存狀況在進入明年時非常健康。

We continue to feel that television sales will be strong. For us it is all about size. As I reported, we are seeing great year-over-year demand in large-size televisions. We are feeling pretty good about early read on 2014 for LCD. Wendell, do you want to comment about reaction from other customers?

我們仍然認為電視銷售會很強勁。對我們而言，關鍵在於尺寸。如我所報告，我們看到大尺寸電視的年對年需求非常強勁。因此，我們對LCD在2014年的初步判讀感覺相當不錯。Wendell，你要評論一下其他客戶的反應嗎？

I would say so far the reaction from our other customers to our recent series of agreements with Samsung has been positive. I leave after the conference call today, on a world tour to spend some time with a number of them face to face.

我會說，到目前為止，我們其他客戶對我們近期與三星達成的一系列協議反應是正面的。我在今天電話會議結束後就會出發進行全球巡迴，與其中幾家面對面交流一段時間。

But so far the reaction has been positive, that they view it as an enhancement of our ability to act independently across the globe. And they're net taking it has a positive.

但到目前為止反應是正面的，他們認為這提升了我們在全球各地獨立行事的能力。而他們整體上是把它視為正面。

More to come. Once again, ever vigilant on those items. In the end it will be our ability to innovate for them and serve them well that will keep them loyal with us.

後續還會有更多資訊。再次強調，對這些事項我們會始終保持高度警覺。最終，能讓他們持續忠誠於我們的，將是我們為他們創新並把服務做好。

You also had a question on telecom. I want to make sure I understand it. You were asking that are we entering a slower period for telecom in the upcoming year? Is that what you were asking?

你也問到電信的問題。我想先確認我理解正確。你是在問，我們是否在接下來一年會進入電信較為放緩的期間？你是這個意思嗎？

Yes. Since the stimulus is would down here and some of the larger projects overseas seem to have peaked, do we see a lull before we see growth again maybe into 2015?

是的。由於這裡的刺激方案正在退場，而海外一些較大型的專案似乎也已見頂，我們是否會在再次成長之前先看到一段空窗期，可能要到2015年？

We're just putting together our view of that. I would say we have some opposing factors. In terms of fiber volume, then I find the hypothesis that you are laying out has some merit in terms of fiber volume.

我們正在整理我們對此的看法。我會說，我們看到一些相互拉扯的因素。就光纖出貨量而言，我覺得你提出的假設在光纖出貨量方面有一定道理。

A lot of it though, pivots around China. And this year China was relatively flat in terms of fiber volume demand. China can be opaque as it looks forward.

不過其中很大一部分取決於中國。而今年中國在光纖出貨量需求方面相對持平。中國在前瞻上可能不太透明、難以看清。

I think your hypothesis has some merit on fiber demand. I think on overall telecom sales, though, it is a little different. We're seeing an awful lot of strength in enterprise, those are all of our data center builds. We are seeing an awful lot of strength in our wireless product set.

我認為你對光纖需求的假設有一定道理。但就整體電信銷售而言，情況又有些不同。我們在企業端看到非常強的動能，也就是我們所有資料中心建置。我們在無線產品組合上也看到非常強的動能。

I think telecom sales are about a lot more than fiber volume. So I do not know that your hypothesis holds for overall telecom sales. Does that make sense to you?

我認為電信銷售涵蓋的遠不只是光纖出貨量。因此我不確定你的假設是否適用於整體電信銷售。這樣說你能理解嗎？

Yes, that's helpful. Thank you and good luck, gentlemen.

是的，這很有幫助。謝謝，祝各位好運。

Wamsi Mohan, Bank of America.

Wamsi Mohan，美國銀行。

Jim, can you bridge the SCP equity income between Q2 and Q3? It looks like it is down from $117 million to $85 million, that is a 25% or so decline. Was there incremental share loss there? And roughly what percent of SCP capacity is currently unutilized? And I have a follow up.

Jim，你能否說明一下SCP權益收益在第二季到第三季之間的變化？看起來從1.17億美元降到8,500萬美元，約下滑25%。那裡是否有額外的市占流失？另外，目前SCP產能大約有多少百分比尚未被利用？我還有一個追問。

In quarter one and two we were averaging about $125 million net income. In quarter three we were at $85 million and it will probably be about $80 million in quarter four. That clearly is a step down. We have known this for a while.

第一季和第二季我們平均約1.25億美元的淨利。第三季是8,500萬美元，第四季可能約8,000萬美元。這顯然是往下了一個台階。我們早就知道會這樣。

The impact is we continue to have price erosion and unlike our wholly-owned business, we have no volume growth and actually have a little bit of volume decline. Is not a share loss. Share remains the same as it did at both our large customers in Korea.

影響在於我們持續面臨價格侵蝕，而且不同於我們全資擁有的業務，我們沒有量的成長，實際上還有一點點量的下滑。這不是市占流失。在韓國兩家大型客戶那裡，我們的市占仍與之前相同。

We did have some other impacts. Some of the strength in income at SCP in the earlier part of year was actually them making product and selling it to us under our old agreements. You may recall that we had told you in the first half of the year our wholly-owned business is relatively full. We had SCP make product for us and under the old agreement they kept the majority of those profits.

我們確實還有一些其他影響。今年較早時SCP收益偏強的一部分，其實是他們依照我們舊協議生產產品並賣給我們。你可能記得我們在上半年曾說過，我們全資業務的產能相對滿載。我們讓SCP替我們生產，而在舊協議下，他們保留了大部分利潤。

There also was a little FX impact in this quarter, but fundamentally not a share loss. There is not growth and demand in Korea right now. Prices go down there and that impacted -- and we are not having them make product for us. Obviously this all resets when we get to the deal closing, then we can use the worldwide capacity most efficiently.

本季也有一點匯率影響，但從根本上說不是市占流失。目前韓國沒有成長與需求。那裡價格下滑造成影響——而且我們也沒有再讓他們替我們生產。顯然，等交易完成交割後一切會重新調整，屆時我們就能以最高效率運用全球產能。

Relative to your comment on capacity in Korea, we have a significant amount off-line there. That significant amount off-line comes about from what happened in the fourth quarter 2011 when the LG share stepped down dramatically. That is where we have a big opportunity to use those very efficient tanks going forward.

關於你提到的韓國產能，我們那裡有相當一部分產能處於停線狀態。這些大量停線源自2011年第四季發生的情況，當時LG的份額大幅下滑。這也是我們未來運用那些非常高效率槽體的一個重大機會。

thanks. And as a follow up, given the utilization rate [cardset] panel makers that you alluded to, can you talk about if you are taking this opportunity to also cut utilization rates in display? And what the anticipated gross margin impact from such cuts could be? Thank you.

謝謝。追問一下，鑑於你們提到的面板廠稼動率[cardset]，能否談談你們是否也趁此機會在顯示器業務降低稼動率？以及這類削減對毛利率可能造成的影響？謝謝。

You are seeing the gross margin impact in our corporate guidance, which was down for the quarter. That is driven primarily by display, some by telecom. We have a normal sequence of tank repairs coming up, so we will take advantage of those repairs that will allow us to throttle back a little.

你在我們公司指引中已經看到毛利率的影響，本季毛利率下滑。主要由顯示器業務所致，電信也有一些。我們接下來有一個正常的槽體維修時程，因此會利用這些維修來讓我們稍微降載。

I do want to emphasize that this pull-back from panel makers that we are talking about is not a significant one. We are talking about our volume in Q4, only a small percentage as versus Q3. So it is not a big deal, but it is down.

我想強調，我們所談的面板廠拉貨縮手並不顯著。我們談的是第四季的出貨量相較第三季只下降一小個百分比。所以不是什麼大事，但確實是下來了。

I would characterize it, it is really a feathering as we come out to that end of the year. The degree of precision on whether or not -- how much we'll feather is in the pretty precision area. So this is a subtle move. It is not a significant move.

我會形容這其實是接近年底時的「微調」。至於我們會微調多少，其精準度落在相當難以精確的範圍。所以這是一個細微的動作。不是重大的動作。

Thanks, Wendell. If I could just follow up to that, to get to a 2- to 3-week reduction in inventory, that is quite a material amount in inventory weeks. What sort of TV unit sell-through would you need for that inventory week number to -- for large-size TVs? Would you need for the inventory number to move down to the 2 to 3 weeks?

謝謝，Wendell。如果我可以再追問一下，要把庫存降低2到3週，這在庫存週數上是相當可觀的幅度。以大尺寸電視來看，需要什麼樣的電視終端銷售（sell-through）才能讓庫存週數——才能讓庫存降到2到3週？

Wamsi, I don't think you realize that we have already achieved a couple of weeks because of the forward looking. As you know, the television demand jumps up seasonally dramatically.

Wamsi，我想你可能沒注意到，因為我們是前瞻性地在做，其實我們已經達成了縮減幾週。如你所知，電視需求在季節性上會大幅跳升。

The square footage at retail in quarter four versus quarter three, in absolute square feet, goes up by 33% driven by the seasonality. Primarily in North America and somewhat in Europe because of the holidays. Obviously large-size televisions help that.

第四季相較第三季，零售端的陳列面積（以絕對平方英尺計）增加33%，主要由季節性帶動。主要在北美，歐洲也因假期而有所增加。顯然，大尺寸電視也有助於此。

We always see that type of seasonality. It is that increase of a couple of hundred million square feet at retail that gets pulled out of the supply chain that causes the absolute number to come down.

我們一向都會看到這種季節性。正是零售端增加的數億平方英尺面積，從供應鏈中被拉動出去，才使得絕對數字下降。

Thanks, Jim. Thanks, Wendell.

謝謝，Jim。謝謝，Wendell。

Amitabh Passi, UBS.

Amitabh Passi，瑞銀。

I had a couple of questions, as well. Jim, Wendell, for you. You talked about re-upping or renewing our contracts. I was wondering if you can update us in terms of whether there is any changes in either market share or pricing assumptions.

我也有幾個問題。Jim、Wendell，想請教你們。你們提到續約或更新合約。我想了解一下，在市占或定價假設方面是否有任何變化？

And then Jim, I wanted to confirm if I look at your fourth quarter guidance, do you anticipate core EPS to be down year-over-year? I wasn't sure what you said about OpEx.

另外，Jim，我想確認一下，如果我看你們第四季指引，你們是否預期核心EPS會年減？我不太確定你剛才對營業費用（OpEx）的說法。

My final question was around the Gorilla Glass guidance. I would've expected a seasonal uptick in the fourth quarter, so surprised that you're guiding sales to be sequentially flat. Thanks.

最後一個問題是關於Gorilla Glass的指引。我原本預期第四季會有季節性回升，所以你們指引銷售額季比持平讓我有點意外。謝謝。

Gorilla, being sequentially flat, we did have some new model launches in Q3. I think there's a possibility it could go up a little, but right now we are thinking it is flat sequentially. You want to comment on the renewal of the contracts and the terms?

Gorilla Glass季比持平，是因為我們在第三季有一些新機型上市。我認為有可能會小幅上升，但目前我們的看法是季比持平。你要不要談談合約續約與條款？

Sure. We are really happy that we have done the renewals to extend those contracts, at least through the end of 2014. As Jim said, some them of them now stretch beyond that.

當然。我們很高興已完成續約以延長這些合約，至少延續到2014年底。如Jim所說，其中一些現在延伸到更久之後。

In all of them, these are not market share-gaining moves. These are market share-stabilization moves. So no change in our share at these customers and no change in the pricing mechanism.

在所有這些合約中，這些並不是用來提升市占的動作。這些是用來穩定市占的動作。因此在這些客戶端，我們的市占沒有變化，定價機制也沒有變化。

I will finish up with your question about core EPS. As you know, we don't give official EPS guidance. Our hope would be to have it be flat sequentially. But it is possible with this down-draft in telecom, because of the year-over-year seasonality we are having this year, we didn't have last year, and the fact that we don't have the inventory build in Gorilla that we had last year, that we could be lower year-over-year on core EPS.

我再補充你關於核心EPS的問題。如你所知，我們不提供正式的EPS指引。我們希望能夠季比持平。但由於電信業務的下行，加上今年出現去年沒有的年比季節性因素，以及我們沒有像去年那樣在Gorilla Glass上進行庫存建立，因此核心EPS年比可能會較低。

Okay, perfect. Thank you, guys.

好的，完美。謝謝各位。

Joseph Wolf, Barclays.

Joseph Wolf，巴克萊。

Thanks for taking a couple of questions. Quickly on the CapEx with the reduction of about $200 million, how should we be thinking about a catch-up next year? Or is it too early to think about that based on what is changing, given the Samsung deal?

謝謝讓我問幾個問題。關於資本支出（CapEx）下調約2億美元，明年我們該如何看待是否需要補回？或者考量到三星交易帶來的變化，現在談這個是否還太早？

And then on the cover glass you mentioned that some of the large sizes were down and that drove some of the results. Could you talk about new opportunities that you may be seeing for large cover glass? Maybe new designs or things that are out there for 2014?

接著，關於您提到的蓋板玻璃（cover glass），有些大尺寸的需求下滑，並且拖累了部分結果。您能談談目前在大尺寸蓋板玻璃方面看到的新機會嗎？也許是2014年可能出現的新設計或新應用？

Okay, I'll start out by the CapEx. The $200 million being down, we are not expecting that we will see a big roll-over into next year.

好的，我先從資本支出（CapEx）談起。資本支出減少的2億美元，我們不預期會在明年出現大幅度的遞延或結轉。

We are still holding right now our forecast of $1.3 billion for next year. That excludes what would be the impact of consolidating Samsung. But if I remind you, when we consolidate Samsung's ongoing capital, we do get the benefit of all of their cash flow.

我們目前仍維持明年13億美元的預測。這不包含合併三星所帶來的影響。但提醒您，一旦我們合併三星的持續性資本支出，我們也能享有其所有現金流的效益。

Right now we are expecting to be about $1.3 billion next year also. Wendell do you want to talk about large cover glass?

目前我們也預期明年大約是13億美元。Wendell，你要談談大尺寸蓋板玻璃嗎？

Yes. We continue to work at a number of different opportunities for large cover glass. I think you will understand if I don't speculate directly on the timing of those and the like.

是的。我們持續在多個大尺寸蓋板玻璃的機會上努力。我想你也能理解，我不便直接推測這些機會的時程等細節。

However, we are pursuing them in both consumer electronics and non-consumer electronics applications. We are not counting on a big surge in the near term. But we believe that long-term there is a strong opportunity for thin and light large-area covers.

不過，我們同時在消費性電子與非消費性電子的應用上推進。我們並未指望短期內會有大幅激增。但我們相信，長期而言，薄型、輕量的大面積蓋板具有很強的機會。

Great, thank you.

很好，謝謝。

Steven Fox, Cross Research.

Steven Fox，Cross Research。

Just a follow up on the Gorilla Glass question. What change between Q3 and Q4? Because it seems like Q4 is a little bit weaker than you would have thought just a few months ago.

我想就Gorilla Glass的問題追問一下。第三季到第四季之間有什麼變化？因為看起來第四季比幾個月前你們原本預期的要弱一些。

Secondly given my understanding of what you are saying about sell-through of Gorilla Glass at the retail level, is it too soon that once this inventory correction is over that you are still looking for that type of growth next year? Thank you.

第二，依我對你們所說Gorilla Glass在零售端銷售（sell-through）的理解，是否還太早下結論：一旦這波庫存修正結束，你們明年仍會期待那種成長幅度？謝謝。

I don't think there has been a real change to inventory from our point of view on Gorilla. We have been dealing with the inventory work-off all year long. The consumption cycle can vary depending on when model rollouts happen. Clearly, year-over-year consumption, quarter four of 2012 versus this year, is up.

就我們對Gorilla的觀點而言，我不認為庫存有真正的變化。我們整年都在處理庫存去化。消耗週期會因機種上市時點不同而有所變動。很明顯地，以年對年來看，2012年第四季相較於今年第四季的消耗量是增加的。

We feel pretty good about that sequence. The consumption level last year, quarter four was down from quarter three just like it is slightly this year. We believe that when we finish working off this pile of inventory that was built in quarter four last year, after quarter four, and the thing that we are interested in is the growth of IT and hand-held. And the rollout of touch and notebook should drive year-over-year growth for Gorilla next year.

我們對這個走勢感覺相當不錯。去年第四季的消耗水準相較第三季是下滑的，就像今年也略微如此。我們相信，當我們把去年第四季建立起來、並在第四季之後持續累積的這批庫存去化完畢後，我們關注的是IT與手持裝置的成長。而觸控與筆電的導入（rollout）應該會帶動明年Gorilla的年對年成長。

As we think about it, Steve, I think at the end-market level, we are seeing phones that are touch-enabled up about 25% this year, and tablets up about 30%. We see continued nice growth next year.

Steve，就我們的看法，在終端市場層面，今年具備觸控功能的手機約成長25%，平板約成長30%。我們看到明年仍將持續有不錯的成長。

I think always the challenging thing about forecasting quarter to quarter in Gorilla is the relatively long and complicated supply chain. I think Jim hit on the good news, which is we believe that as we get through the fourth quarter of this year, we will have worked through the last of the overhang, of the over-ordering from our customers in quarter four of last year.

我想，在Gorilla的季度預測上，最具挑戰的一向是供應鏈相對較長且複雜。我認為Jim提到的好消息是：我們相信，當我們度過今年第四季時，就能消化掉最後一部分的庫存壓力，也就是客戶在去年第四季過度下單所造成的庫存懸掛（overhang）。

I totally hear you. The supply chain, given its length and complexity, can be difficult to forecast in any given quarter. But the year-over-year trends at the consumption level continue to look good to us, Steve.

我完全理解你的意思。供應鏈因為長且複雜，確實會讓任何單一季度的預測變得困難。但在消耗層面的年對年趨勢，對我們而言仍然看起來不錯，Steve。

That is totally fair. Then one very quick follow up. Did you wind up shipping as much as you thought into the touch notebook market for the second half of the year? Or how would you describe that? Thanks.

這很合理。那再非常快速追問一個。你們今年下半年在觸控筆電市場的出貨量，最後有達到原先預期的水準嗎？或者你會怎麼描述？謝謝。

On touch on notebook, think there's a couple of areas. First of all, the overall penetration of touch into notebooks has ended up being less than what we have thought it would be at the beginning of the year.

關於筆電觸控，我想有幾個面向。首先，觸控在筆電的整體滲透率，最後確實低於我們年初的預期。

Some of this has to do with some of the challenges of Windows 8. Some of it has to do with some of the challenges of what will notebooks work like with touch? And will they be convertibles? Will they just be notebooks that work just like a notebook but I can touch it too?

其中一部分與Windows 8的一些挑戰有關；另一部分則與「筆電加入觸控後會是什麼樣的使用型態」的挑戰有關。它們會是可翻轉/可變形（convertibles）嗎？還是只是像一般筆電一樣運作、但也可以觸控的筆電？

All of that I don't think yet has been worked through with a clear product concepts by our brands. I think the penetration is certainly lower than what we would have thought at the beginning of the year. And the notebooks continue to be price- and volume-challenged.

我認為這些目前還沒有被我們的品牌客戶以清晰的產品概念完全釐清。我想滲透率確實低於我們年初的預期。而筆電市場也持續面臨價格與出貨量的挑戰。

We do believe that this will be overcome. That touch will be an important part of notebooks going forward. And that ultimately, about half of them will be touch-enabled. That we will continue to do is work to devise product that makes that a more compelling product, as well as to deal with some of the lower-end attack of lesser materials. Because of the incredible price sensitivity of these notebooks, and that no one has yet to find a way to turn touch into a compelling price feature.

我們確實相信這些問題會被克服。觸控將會是未來筆電的重要一環。最終大約有一半的筆電會具備觸控功能。我們會持續努力的是：開發能讓觸控更具吸引力的產品，同時也要因應較低階材料的競爭壓力。因為這些筆電對價格極度敏感，而且目前還沒有人找到把觸控轉化為具說服力、能支撐價格的功能賣點的方法。

Great, that's all very helpful. Thank you very much.

很好，這些都非常有幫助。非常感謝。

Jim Suva, Citi.

Jim Suva，花旗（Citi）。

I wanted to ask a question. On this acquisition of SCP, you laid down a 20% accretion. Can you talk a little bit about the implied buyback timing or inherent assumption under that.

我想問一個問題。關於這次收購SCP，你們提出了20%的增厚（accretion）。能否談談其中隱含的庫藏股回購時點，或這背後的內含假設？

Is it for the full $2 billion to be employed on the very early part of the year or averaged through the year? And what is Corning's intention for that large stock buyback, for the timing?

是預期全年20億美元會在年初很早就全部投入，還是會在全年平均投入？另外，康寧對於這筆大規模股票回購的時程意圖是什麼？

We said the 20%. We said approximately, but our intent is to get those shares taken out of the market as soon as we can.

我們說的是20%。我們說是約略值，但我們的意圖是：能多快就多快把這些股份從市場上買回並註銷/退出流通。

We haven't made a final decision on what we are doing in terms of whether we will do an accelerated stock repurchase program or not. As soon as we do make that decision we will let you know. Our desire is to get them out of the share count for 2014.

我們尚未就是否要採用加速股票回購（ASR）計畫做出最終決定。一旦做出決定，我們會立即告訴各位。我們希望能讓這些股份在2014年的流通股數中被扣除。

It sounds like, in other words not averaged through the year, but rather very front-end loaded sp you can get the EPS benefit for the whole longevity of the year, rather than spreading it gradually over the year. Is that correct?

聽起來換句話說，不是全年平均回購，而是更偏向在年初前段就大量回購，讓全年都能享有EPS效益，而不是在一年中逐步攤開。是這樣嗎？

That would be our tendency, to try to lean that way.

那會是我們的傾向，也就是盡量往那個方向做。

Great. Thank you very much.

很好。非常感謝。

Patrick Newton, Stifel.

Patrick Newton，Stifel。

First one for Jim or Wendell. Pertaining to your LCD pricing mechanisms being in place now for about four quarters and your announced renewal. I'm curious if you could discuss any competitive responses you have seen during this time?

第一個問題想請教Jim或Wendell。關於你們的LCD定價機制已實施大約四個季度，且你們也宣布續約。我想了解在這段期間，你們看到競爭對手有哪些因應或反應？

We try not to opine too much on what our competitors are doing. What has happened for us on moderate price declines has obviously been influenced on those customers where we have these clauses. What our competitors do can have an impact.

我們盡量不對競爭對手的作為發表太多評論。就我們而言，溫和的價格下滑，顯然在那些我們與客戶合約中包含這些條款的情況下，已對結果產生影響。競爭對手的作法也可能帶來影響。

I think overall the industry has seen moderate price declines. But I won't comment in more detail about our competitors. You obviously can look at their public statements.

我認為整體而言，產業已出現溫和的價格下滑。但我不會就競爭對手再做更詳細的評論。你顯然可以去看他們的公開聲明。

All right. And then on SCP, the $350 million in incremental income that you have guided to implies a continued erosion the fundamentals at SCP, relative to even the most recently reported quarter.

好的。接著談到SCP，你所指引的3.5億美元增量收益，意味著相較於即便是最近一次公布的季度，SCP的基本面仍在持續惡化。

Can you help us understand what gives you comfort that these fundamentals are going to stabilize? What kind of thought process is behind you achieving your targeted $2 billion in free cash flow for the next four years?

你能否協助我們理解，什麼讓你有信心這些基本面將會趨於穩定？你們在未來四年達成目標20億美元自由現金流的思考脈絡是什麼？

I would start out by saying, we do expect erosion to continue at SCP in quarter four. Once we take over, we believe that we will have the ability to manage that operation in a way that we can stop the erosion.

我會先說，我們確實預期SCP在第四季侵蝕仍會持續。一旦我們接手，我們相信將有能力以一種方式管理該營運，從而停止這種侵蝕。

We clearly expect to get synergies from better utilization of the worldwide set of tanks that we have. We will be able to get out of some high-cost facilities. We do expect volume growth next year. The way we will be thinking about this is we will no longer be telling you what SCP is, we will be telling you with our worldwide LCD business is, and also our Gorilla business.

我們顯然預期能從更有效運用我們全球的槽罐資產中取得綜效。我們將能退出一些高成本設施。我們確實預期明年出貨量會成長。我們思考這件事的方式是：我們不再告訴你SCP是什麼，而是告訴你我們的全球LCD業務是什麼，以及我們的Gorilla業務。

Remember, this year we have been dealing with Gorilla basically not having the growth we expected because of this overhang of inventory. We will now get that growth again because we will be matching the consumption level. That has got to come out of tanks that we need to operate. That is where we're going to get some of the benefit going forward. We are pretty confident that we will be able to achieve that $350 million incremental.

記住，今年我們一直在面對Gorilla基本上沒有如我們預期成長，原因是庫存壓力的陰影。現在我們會再次取得那樣的成長，因為我們將會去匹配實際消耗水準。那必須由我們需要運作的槽罐產能來供應。這就是我們未來將取得部分效益的地方。我們相當有信心能達成那3.5億美元的增量。

I think if we take a look at the fundamentals here, we expect Korea as a market to customers in Korea to be relatively stable. They have been, and we expect them to continue to. We are quite happy with our market share in Korea and our customer share at both of those players.

我認為如果我們看看這裡的基本面，我們預期韓國作為一個市場、以及韓國的客戶將相對穩定。他們一直如此，我們也預期會持續如此。我們對於在韓國的市占率，以及在那兩家客戶的客戶占比都相當滿意。

For us, the acquisition is about cost reduction and being able to utilize that low-cost capacity to serve our growing other customer bases around the globe. That is where that real stabilization comes from on the financials.

對我們而言，這項收購重點在於降低成本，並能運用那個低成本產能來服務我們在全球其他不斷成長的客戶基礎。那才是財務面真正穩定下來的來源。

To your first question, I would just amplify what Jim said. For us, these customer agreements aren't about our competitors, they are about our customers. Approaching -- one of the main reasons that we have extended them is that we have noted, and our customers have noted, that it has significantly improved our ability to focus on what really matters to our customers around innovation, service, quality, et cetera. It has taken the whole tone of our dialogue and focused it on how do we improve each other's situations in a more integrated way? That is one of the main reasons that we have extended them.

針對你的第一個問題，我只想補充Jim所說的。對我們而言，這些客戶協議不是關於競爭對手，而是關於我們的客戶。其中一個我們延長協議的主要原因，是我們注意到、而我們的客戶也注意到，這顯著提升了我們把焦點放在客戶真正重視的事情上的能力，例如創新、服務、品質等等。它改變了我們對話的整體基調，並把焦點放在：我們如何以更整合的方式改善彼此的處境？這就是我們延長協議的主要原因之一。

All right, thank you very much. Last one for me, Jim, is on Gorilla, to make sure I understand what you are implying. It seems like you are now looking for flat to slightly up Gorilla revenue year-over-year given the 4Q guidance. As recently as last quarter of believe you reiterated a 10% year-over-year Gorilla growth.

好的，非常感謝。Jim，我最後一個問題是關於Gorilla，確認我理解你所暗示的內容。看起來依照第四季指引，你們現在預期Gorilla營收年對年持平到小幅成長。就在上季，我記得你還重申Gorilla年對年成長10%。

You been aware about the inventory issues now for several quarters. I am curious, it sounds like something on the demand side is the delta between what you expected last quarter versus the new guide. Am I reading the gross rate correctly? If you could elaborate a little bit on what has changed sequentially outside of the inventory. Thank you.

你們已經注意到庫存問題好幾個季度了。我很好奇，聽起來需求端的變化，是你們上季預期與這次新指引之間的差異。我對成長率的解讀正確嗎？如果可以的話，請再多說一點，除了庫存之外，還有哪些連續性的變化。謝謝。

I'm struggling following your numbers for Gorilla.

我有點跟不上你對Gorilla的數字。

I think this may be best. While we are pausing here, I think is, are you talking about the consumption level that you saw on that slide? Are you talking about our sell in?

我想這樣可能最好。我們先停一下，我想問的是：你是在談你在那張投影片上看到的消耗水準嗎？還是在談我們的sell-in（出貨給通路/客戶）？

I'm talking about purely about your revenue recognition on Gorilla. I think by my math we do not have an absolute number 3Q. I believe you said your guidance is flat on a revenue basis for Gorilla, sequentially.

我談的是你們在Gorilla上的營收認列。按我的計算，我們沒有第三季的絕對數字。我記得你說你們對Gorilla的指引，在營收基礎上是季對季持平。

No, we said flat volume, I believe.

不，我們說的是出貨量持平，我相信是這樣。

Flat volume, okay. That helps explain it. I will have to go re-jigger my math. In essence, that 10% number year-over-year growth, I am assuming is coming down slightly?

出貨量持平，好的。這有助於解釋。我得回去重新調整一下我的計算。本質上，那個年對年成長10%的數字，我假設會稍微下修？

10% in what?

哪個10%？

You'd originally guided to Gorilla Glass revenue to grow 10% year-over-year in 2013.

你們原本指引2013年Gorilla Glass營收年對年成長10%。

That was a long time ago.

那是很久以前的事了。

As recently as last quarter you implied that that was still --

就在上季你還暗示那仍然——

I think we had a sequential. I think we're probably best served here maybe if you and Ann could do a follow-up and sync up the models. Make sure we are not talking past each other. I think we're probably best served by that.

我想我們談的是一個季對季的部分。我想在這裡，可能最好的做法是你和Ann後續再跟進，把模型對一下。確保我們沒有在各說各話。我想那樣會比較好。

All right, will do.

好的，會的。

I 'm worried we're talking past each other.

我擔心我們在各說各話。

Perfect, thank you.

很好，謝謝。

Brian White, Cantor Fitzgerald.

Brian White，Cantor Fitzgerald。

I'm wondering if you could talk a little bit about -- you talked about 2014 in your expectations for TVs a little bit. What type of volume growth in glass should we be thinking about for 2014?

我想請你談談——你稍微提到你們對2014年電視的預期。那2014年玻璃的出貨量成長，我們應該怎麼看？

We haven't given official guidance yet for the market for next year, but I think that we would be expecting probably directionally the class demand in the absence of inventory shifts that we're not expecting to be, again, in the upper single-digits.

我們尚未對明年市場給出正式指引，但我想我們預期，在不考慮我們不預期會發生的庫存變動情況下，玻璃需求的方向性大概仍會落在高個位數成長。

Okay. The inventory situation in Gorilla, is there one customer? Or is that multiple customers?

好的。Gorilla的庫存狀況，是單一客戶造成的嗎？還是多個客戶？

Multiple customers.

多個客戶。

Multiple customers. Okay. I want to clarify, I may have missed, EPS growth was a little confusing. I thought you said flat quarter on quarter, but that you came back and said year over year it could be flat. I just want to be clear, are you talking year over year? Or are you talking sequentially could be flat or slightly down?

多個客戶。好的。我想釐清一下，我可能漏聽了，EPS成長有點讓人困惑。我以為你說季對季持平，但你又回來說年對年可能持平。我想確認清楚：你是在談年對年嗎？還是你在談季對季可能持平或小幅下滑？

We said sequentially EPS could be down. And we said that year-over-year EPS could be flat or slightly down.

我們說的是季對季EPS可能下滑。也說年對年EPS可能持平或小幅下滑。

Right, thank you.

了解，謝謝。

Simona Jankowski, Goldman Sachs.

Simona Jankowski，Goldman Sachs。

On the contract renegotiation, it seems like you guys completed that a bit earlier that last year and also for a longer term. Also is seems like this year it didn't have a price reset like it did last year.

關於合約重新談判，看起來你們比去年更早完成，而且期限也更長。另外，看起來今年不像去年那樣有價格重置。

And all of this in the context of what seems to be an environment with a little more excess inventory in the supply chain than what we had last year. Is there anything we can read into that as far as Corning having a better structural or competitive position relative to a year ago?

而這一切是在這樣的背景下：供應鏈環境看起來比去年有更多一些的過剩庫存。就Corning相較於一年前是否具備更好的結構性或競爭性地位而言，我們能否從中解讀出任何訊息？

Timing was identical to a year ago. The recent you are referring to was the impact of the first initiation of this, as we had to get reset in quarter four as a result of the agreement. But the timing was identical for those.

時點與一年前完全相同。你所提到的近期影響，是因為我們首次啟動這項安排，且由於該協議，我們在第四季必須進行重置。但就那些而言，時點是相同的。

I think what you should read into it is that our customers are really delighted with the agreements. They like the way in which this allows us to work together. I think that is why it seems like such a calm, easy event, is it's something our customers really want to do.

我認為你應該從中解讀的是，我們的客戶對這些協議真的非常滿意。他們喜歡這種讓我們能夠共同合作的方式。我想這也是為什麼看起來像是一件很平穩、很容易的事情，因為這是我們客戶真的很想做的。

Got it. Also it does seem to have been extended for a longer period of time. It seems like last year it was a one-year extension or contract, and this year it seems to have been for longer.

了解。另外，看起來確實也延長到更長的期間。似乎去年是一年的延長或合約，而今年看起來是更長。

It is a real mix by the customers. What we let our customers do is pick what they like. And then what we were willing to agree to.

這在客戶之間其實是相當混合的情況。我們讓客戶可以選擇他們喜歡的方案。然後再看我們願意同意哪些條件。

I think if we were willing, we probably could have gone even longer with more customers. But as Jim said, for us, this takes constant vigilance. So in each of these moves, we try to measure twice.

我想如果我們願意的話，可能可以和更多客戶簽更長的期間。但如 Jim 所說，對我們而言，這需要持續的警覺。所以在每一次這類調整中，我們都會盡量再三衡量。

Okay. And then a quick one on Gorilla. Can you characterize the competitive environment there? And whether that has played any factor into the slightly lower expectations?

好的。接著快速問一下 Gorilla。你能描述一下那邊的競爭環境嗎？以及這是否對略低的預期有任何影響？

Really we haven't seen much change in the competitive environment. It is not a market share issue for us in any of the major brands. We continue to feel very good about our share.

坦白說，我們沒有看到競爭環境有太大變化。在任何主要品牌上，對我們而言都不是市占率的問題。我們仍然對自己的市占感到非常有信心。

That being said, there is more growth in the very low-end piece of the smartphone market, or on white goods for tablets, the no-named tablets in China. These are phones, for instance, that sell for less than $150.

話雖如此，智慧型手機市場的超低端區塊成長較多，或是平板的白牌產品、在中國的無名平板。例如這些手機的售價低於 150 美元。

In that area, we have not penetrated as highly as you would normally expect us to. But our competition there is not from other alumina-silica glasses, it is just from thin window glass that is chem-exchanged.

在那個領域，我們的滲透率沒有達到你通常會預期的水準。但我們在那裡的競爭對手並不是其他鋁矽酸鹽玻璃，而只是經過化學強化（chem-exchanged）的薄窗玻璃。

What we're doing now is we're taking a look at what we should do in that market segment to compete against a very low-end product that, really, we haven't seen since the very beginning of the cover glass effort. So long ago, in hand-held and tablets, we defeated that as of inferior material. And now we have got to figure out how to address it in a market segment that is addressing a different piece of the market.

我們現在正在檢視，在那個市場區隔中我們應該怎麼做，才能與一種非常低端的產品競爭；老實說，這種產品自從蓋板玻璃業務最初期以來就很少見了。很久以前，在手持裝置與平板上，我們已經以其為較劣材料而擊敗它。而現在我們必須想辦法在一個面向不同市場區塊的情境下，如何去因應它。

In a way I'm looking at that as a really nice opportunity. Sorry for the long answer, but I thought maybe a more fulsome answer would be helpful to you.

某種程度上，我把這視為一個很好的機會。抱歉回答得比較長，但我想更完整的回答可能對你有幫助。

No, that was very helpful. Thank you.

不，這非常有幫助。謝謝。

Lola, we've got time for one more question.

Lola，我們還有時間再問一個問題。

Augment -- Piper Jaffrey.

Augment —— Piper Jaffrey。

Two questions. First, Jim, you talked about the demand for 2014, I wanted to get your thoughts on what is your early read on supply in terms of the glass? We have talked about capacity being taken off-line, but is there any early thoughts into how supply is going to be for next year? And then I have a follow up.

兩個問題。第一個，Jim，你談到 2014 年的需求，我想聽聽你對玻璃供給面的初步看法。我們談過有產能下線，但對於明年供給會如何，有沒有任何初步想法？然後我還有一個追問。

We think glass supply remains relatively stable. We have seen disciplined behavior by the glass industry, including ourselves. So we're not expecting any sea change in glass supply as we head into 2014.

我們認為玻璃供給仍相對穩定。我們看到玻璃產業（包括我們自己）展現出有紀律的行為。因此在邁入 2014 年之際，我們不預期玻璃供給會出現任何劇烈變化。

As a follow up, you did say that inventory is going to be finished up by the end of Q4 for specialty materials. I was just thinking about, as we look at 2014, and as you start to roll out new products, how should we be thinking about growth rates for these new products potentially driving year-over-year growth in specialty materials for 2014? Or should we still expect consumer devices there, the mobile devices, to be the main driver here? Thank you.

追問一下，你確實提到特殊材料的庫存會在第四季末前處理完畢。我在想，展望 2014 年，當你開始推出新產品時，我們應該如何看待這些新產品的成長率，可能對 2014 年特殊材料的年對年成長帶來的推動？或者我們仍應預期消費性裝置、行動裝置會是主要驅動力？謝謝。

I think you should continue to think about the mobile devices to be the main driver. I think you will see some touch on notebook improve as well. And most of the other areas around large format and other applications are going to be slower moving, as opposed to the speed you see out of mobile consumer electronics.

我認為你應該繼續把行動裝置視為主要驅動力。我想你也會看到筆電觸控方面有所改善。而其他多數領域，包括大尺寸與其他應用，相較於行動消費性電子的速度，會是較慢的推進。

Thanks, Jagadish. Jim?

謝謝，Jagadish。Jim？

Just to wrap up comments, first on investor relation events. We'll be attending the UBS Technology Conference on November 20 in a new location, Sausalito, California. Second, we will have a group at the Credit Suisse Technology Conference on December 30 in Scottsdale.

最後做個總結，先談投資人關係活動。我們將於 11 月 20 日在新的地點——加州索薩利托（Sausalito）——參加 UBS 科技會議。第二，我們將於 12 月 30 日在斯科茨代爾（Scottsdale）參加瑞士信貸科技會議，並會有一個團隊出席。

A brief summary of the highlights of the call, we remain very excited by last week's announcement on the purchase of the remainder of SCP's LCD business. We're looking forward to closing in quarter one and realizing the synergies that Wendell was talking about from the integration.

簡要回顧本次電話會議的重點：我們仍對上週宣布收購 SCP LCD 業務剩餘部分感到非常振奮。我們期待在第一季完成交割，並實現 Wendell 所提到的整合綜效。

I think we are delighted by our performance in Q3. We had strong results across all of our businesses. We're expecting normal seasonality in Q4, but obviously additional headwinds from China fiber demand.

我們對第三季的表現感到非常滿意。我們所有業務都有強勁的成果。我們預期第四季會呈現正常的季節性，但顯然也會受到中國光纖需求帶來的額外逆風影響。

We are very happy with the progress return of positive momentum in display. Combining the synergies of the deal, the Q4 moderate price declines, and now the vast majority of our 2014 volume under contract should continue that momentum.

我們對顯示業務回到正向動能的進展感到非常高興。結合這筆交易的綜效、第四季溫和的價格下滑，以及目前我們 2014 年絕大多數的出貨量已在合約之下，應可延續這股動能。

For the Company, we feel we've got fundamentals in our businesses that are solid. And lastly for you shareholders, we are very committed to continue to return more cash towards you. Ann?

就公司而言，我們認為各項業務的基本面相當穩健。最後，對各位股東，我們非常承諾將持續把更多現金回饋給各位。Ann？

Thank you, Jim, and thank you all for joining us today. A play back of the call is available beginning at 11.00 AM Eastern today and will run until 5.00 PM Eastern on Wednesday, November 13.

謝謝你，Jim，也謝謝各位今天加入我們。本次電話會議的重播將於今日美東時間上午 11:00 起提供，並持續至 11 月 13 日（週三）美東時間下午 5:00。

To listen, dial 800-475-6701. The access code is 304926. The audiocast, of course, is available on our website during that time. Lola, that concludes the call, please disconnect all lines.

收聽請撥 800-475-6701。存取碼為 304926。當然，在此期間也可於我們的網站收聽網路音訊直播回放（audiocast）。Lola，本次電話會議到此結束，請切斷所有線路。