康寧 (GLW) 2013 Q4 法說會逐字稿

Welcome to the Corning Incorporated quarter four 2013 earnings conference call.

歡迎參加康寧公司 2013 年第四季財報電話會議。

(Operator Instructions)

（操作員說明）

As a reminder, today's conference is being recorded.

提醒一下，今天的會議正在錄製中。

I would now like to turn the conference over to our host, Division Vice President, Investor Relations, Ms. Ann Nicholson.

現在我想將會議轉交給我們的房東、投資者關係部門副總裁 Ann Nicholson 女士。

Please go ahead.

請繼續。

Thank you, Tom, and good morning.

謝謝你，湯姆，早安。

Welcome to Corning's fourth quarter conference call.

歡迎參加康寧第四季電話會議。

With me today is Jim Flaws, Vice Chairman and Chief Financial Officer.

今天和我在一起的是副董事長兼財務長吉姆‧弗勞斯 (Jim Flaws)。

Before we begin our formal comments, I'd 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.

在我們開始正式評論之前，我想提醒您，今天的評論包含前瞻性陳述，這些陳述符合 1995 年《私人證券訴訟改革法案》的含義。

These remarks involve a number of risks, uncertainties and other factors that could cause actual results to differ materially.

這些言論涉及許多風險、不確定性和其他因素，可能導致實際結果有重大差異。

These factors are detailed in the Company's SEC reports.

這些因素在公司的 SEC 報告中有詳細說明。

You should also note that this presentation contains a number of non-GAAP measures.

您還應該注意，本簡報包含許多非 GAAP 衡量標準。

A reconciliation can be found on our website.

您可以在我們的網站上找到調節表。

Now I'll turn the call over to Jim.

現在我將把電話轉給吉姆。

Thanks, Ann.

謝謝，安。

Good morning, everyone.

大家，早安。

I'd like to begin today by looking back at what we said one year ago.

今天開始，我想回顧一下我們一年前所說的話。

In our January 2013 earnings call, we announced record sales for the fourth quarter 2012 and also for the full year of 2012.

在 2013 年 1 月的財報電話會議上，我們宣布 2012 年第四季和 2012 年全年的銷售額均創歷史新高。

But far more importantly, we had reported our quarter four 2012 earnings per share were up year over year.

但更重要的是，我們報告 2012 年第四季每股收益較去年同期成長。

This was significant as it marked the first of what has now become five consecutive quarters of year-over-year earnings growth.

這意義重大，因為這標誌著盈利連續五個季度同比增長的第一個季度。

Coming into 2013, we told investors we made progress against our goal to form bottom and march up, but still had work ahead of us.

進入2013年，我們告訴投資者，我們在實現觸底向上的目標方面取得了進展，但仍有工作要做。

Specifically, our goal was to stabilize display earnings through LCD glass price decline moderation and drive earnings growth with our Optical Communications, Specialty, Environmental and Life Science segments.

具體來說，我們的目標是透過液晶玻璃價格下降放緩來穩定顯示器效益，並推動光通訊、特種、環境和生命科學領域的收益成長。

Now as we look at our 2013 results, we can declare that we achieved our goal.

現在，當我們回顧 2013 年的業績時，我們可以宣布我們實現了目標。

We formed bottom, and we've begun our march up.

我們已形成底部，並開始向上進軍。

For the full year, we grew core sales 5%.

全年，我們的核心銷售額成長了 5%。

We improved core gross margin.

我們提高了核心毛利率。

We reduced operating expense in dollars and as a percentage of sales.

我們降低了以美元計算的營運費用以及佔銷售額的百分比。

We grew our core NPAT at 13%.

我們的核心 NPAT 成長了 13%。

We retained our strong balance sheet while also returning more cash to shareholders in the form of an 11% dividend increase and execution of $1.5 billion in share repurchases.

我們保留了強勁的資產負債表，同時也以增加 11% 的股息和執行 15 億美元的股票回購的形式向股東返還更多現金。

And aided by those share repurchases, we grew EPS 16%.

在這些股票回購的幫助下，我們的每股盈餘成長了 16%。

We also announced and have now just closed on a fantastic transaction with Samsung for the full ownership of our equity venture SCP.

我們還宣布並剛剛完成了與三星的一項出色交易，以獲得我們股權企業 SCP 的全部所有權。

We believe the numerous strategic and financial benefits will strengthen the LCD business, broaden our relationship with Samsung, and provide outstanding returns to shareholders.

我們相信，眾多的策略和財務利益將加強 LCD 業務，擴大我們與三星的關係，並為股東提供卓越的回報。

I'll be providing some more information on the consolidated entity for your modeling purposes in my outlook section.

我將在展望部分提供有關合併實體的更多信息，以便您進行建模。

I'd like to turn to our quarter four results, beginning with some highlights.

我想談談我們第四季的業績，首先是一些亮點。

Now, as a reminder, we provide core performance results in order to exclude nonperformance related items and increase the transparency of our operating results.

現在，提醒一下，我們提供核心績效結果是為了排除非績效相關項目並提高經營結果的透明度。

Core financial measures are a non-GAAP financial measure, and we continue to report our GAAP results.

核心財務指標是非公認會計原則財務指標，我們將繼續報告我們公認的會計原則結果。

You'll find detailed reconciliations on our website, outlining the differences between these non-GAAP measures and the most directly comparable GAAP measure.

您可以在我們的網站上找到詳細的調整表，其中概述了這些非 GAAP 衡量標準與最直接可比較的 GAAP 衡量標準之間的差異。

We had a solid quarter.

我們度過了一個穩定的季度。

It was better than we originally expected.

這比我們最初預期的要好。

With volume up almost 5% year over year and 2% sequentially, display set a new quarterly record for sales volume.

顯示器銷量較去年同期成長近 5%，季增 2%，創下了新的季度銷量紀錄。

LCD glass price declines were again moderate.

LCD 玻璃價格再次溫和下滑。

LCD glass demand continues to be good, and we believe this is driven by good retail demand in Q4 for larger televisions and expectations for Q1, specifically the Chinese New Year.

LCD 玻璃需求持續良好，我們認為這是由於第四季度對大尺寸電視機的良好零售需求以及對第一季度（特別是農曆新年）的預期推動的。

In this morning's press release, we announced that we expect higher price declines in quarter one of 2014 than in previous quarters.

在今天上午的新聞稿中，我們宣布預計 2014 年第一季的價格跌幅將高於前幾個季度。

I want to be clear here that we believe this is a one-quarter phenomenon that we do not expect to repeat.

我想在此明確指出，我們認為這是四分之一的現象，我們預期不會重複。

And I'll cover this in more detail in the display outlook section.

我將在顯示展望部分更詳細地介紹這一點。

Optical Communications, Life Sciences, Environmental all performed better for the quarter than we expected, and I'll get to those details in a minute.

光通訊、生命科學、環境在本季的表現都優於我們的預期，我將立即詳細介紹這些細節。

Our one miss for the quarter was Specialty Materials; Gorilla Glass volume was lower than expected by approximately 10%, and along with product mix, reduced Specialty Materials profitability sequentially.

我們本季的一個失誤是特種材料；大猩猩玻璃銷量低於預期約 10%，隨著產品結構的變化，特種材料的獲利能力也隨之下降。

On the other hand, Specialty Materials full-year profits were only down slightly despite the 13% decrease in year-over-year sales.

另一方面，儘管特種材料銷售額年減13%，但全年利潤僅小幅下降。

So let's go to the fourth quarter.

那麼讓我們進入第四季。

Our sales were $2 billion, down slightly versus last year.

我們的銷售額為 20 億美元，比去年略有下降。

Gross margin was 40%, lower than our expectation of 42%.

毛利率為 40%，低於我們預期的 42%。

Two main factors drove the decreased gross margin.

有兩個主要因素導致毛利率下降。

First, lower than expected volume for Gorilla Glass impacted gross margin versus forecast.

首先，大猩猩玻璃的銷量低於預期影響了毛利率（與預期相比）。

And second, the additional sales in Optical Communications were in lower margin products, and I'll cover each of these in detail shortly.

其次，光通訊領域的額外銷售來自於利潤率較低的產品，我很快就會詳細介紹其中的每一個。

SG&A spending was higher year over year, driven mainly by the increased accrual for performance-based compensation.

SG&A 支出較去年同期增加，主要是由於績效為基礎的薪酬應計費用增加。

RD&E was down versus a year ago, reflecting our cost control efforts.

研發與工程（RD&E）較一年前有所下降，反映出我們在成本控制方面所做的努力。

Other income included a payment for the settlement of a dispute over the use of fusion technology in China.

其他收入包括為解決中國聚變技術使用糾紛而支付的費用。

Details can be found on our November 15, 2013 filing.

詳細資訊請參閱我們 2013 年 11 月 15 日提交的文件。

Gross equity earnings of $121 million were down about 20% year over year, driven by SCP's year-over-year price declines on relatively consistent glass volume.

由於玻璃產量相對穩定，SCP 價格較去年同期下跌，導致總股本收益 1.21 億美元，年減約 20%。

Finally, our EPS was $0.29, up $0.01 versus a year ago.

最後，我們的每股收益為 0.29 美元，比一年前增加了 0.01 美元。

On October 31, we announced a $1 billion accelerated stock repurchase program, which retired 47 million shares.

10 月 31 日，我們宣布了一項 10 億美元的加速股票回購計劃，回購了 4,700 萬股股票。

We also repurchased $75 million of shares under our open market repurchase program during the quarter.

本季我們也根據公開市場回購計畫回購了 7,500 萬美元的股票。

So in 2013 in total, we used $1.5 billion of the $2 billion program that we had announced in April.

因此，2013 年我們總共使用了 4 月宣布的 20 億美元計劃中的 15 億美元。

We ended 2013 with 1.401 billion outstanding common shares.

截至 2013 年末，我們已發行普通股 14.01 億股。

For the year, sales were $7.95 billion or almost $8 billion, up 5% over 2012.

今年銷售額為 79.5 億美元，接近 80 億美元，比 2012 年成長 5%。

Corporate gross margin was up 0.5 percentage points, driven by improved manufacturing efficiencies in Optical Communications, Specialty Materials, Environmental.

受光通訊、特殊材料、環境製造效率提高的推動，企業毛利率增加了 0.5 個百分點。

Additionally, LCD glass gross margins were down only slightly, driven by cost reduction programs.

此外，在成本削減計劃的推動下，液晶玻璃玻璃的毛利率僅略有下降。

We lowered S&A and R&D for the year in absolute dollars and as a percentage of sales, reflecting our cost control measures.

我們降低了今年的銷售與管理費用和研發費用的絕對值以及佔銷售額的百分比，反映了我們的成本控制措施。

Moving down the income statement, gross equity earnings were down 17%, reflecting the year-over-year price declines at SCP.

從損益表來看，總股本收益下降了 17%，反映出 SCP 價格年減。

Our effective tax rate for the year was 17%.

我們當年的有效稅率為 17%。

EPS for the year was $1.23, up 16%.

今年每股收益為 1.23 美元，成長 16%。

This year-over-year improvement is a result of our ability to manage spending, improve profitability through manufacturing cost reductions and other programs, and maintain moderate price declines for LCD glass.

這一同比增長得益於我們管理支出、透過降低製造成本和其他計劃來提高盈利能力以及維持 LCD 玻璃價格適度下降的能力。

Now I'd like to turn to the detailed segment results, and I'll start with display.

現在我想談談詳細的分段結果，我將從顯示開始。

Display sales were $665 million in Q4, a 5% decrease versus last year.

第四季顯示器銷售額為 6.65 億美元，比去年下降 5%。

Sequentially, Corning and SCP's combined volume was up slightly.

隨後，康寧和 SCP 的總銷量略有上升。

Overall, our market share remains stable, and LCD glass price declines were moderate.

整體而言，我們的市佔率保持穩定，液晶玻璃價格跌幅溫和。

Gross equity earnings from our equity venture in Korea, SCP, were $85 million in Q4, a decrease of 24% versus last year.

第四季度，我們在韓國的股權投資企業 SCP 的總股本收益為 8,500 萬美元，比去年下降 24%。

In addition to year-over-year price declines and slightly lower volume, SCP had had a high level sales back to Corning's base display business in Q4 of 2012 that did not repeat in Q4 of 2013.

除了同比價格下降和銷量略有下降之外，SCP 在 2012 年第四季度向康寧的基礎顯示器業務帶來了高額銷售額，而 2013 年第四季度沒有出現這種情況。

You may recall that our base display and Gorilla businesses were quite full in quarter four of 2012.

您可能還記得，我們​​的基礎顯示器和大猩猩業務在 2012 年第四季就已經滿了。

Now for your modeling purposes, display equity affiliates fourth-quarter display glass sales were about $522 million, decrease of 19% from the prior year.

現在，出於建模目的，顯示器股權子公司第四季度顯示器玻璃銷售額約為 5.22 億美元，比前一年下降 19%。

As a reminder, this represents SCP's LCD sales only.

提醒一下，這僅代表 SCP 的 LCD 銷售量。

Our public filings will report display equity affiliates total sales, which include other products.

我們的公開文件將報告顯示器股權附屬公司的總銷售額，其中包括其他產品。

Net income was down 1%, reflecting the impact of price declines offsetting higher volume, and year-over-year cost reductions helped maintain these stable profits.

淨利潤下降 1%，反映出價格下跌抵消了銷量增加的影響，而成本年減有助於維持這些穩定的利潤。

For the year, our wholly owned display segment sales were $2.7 billion, up 7%.

今年，我們全資擁有的顯示器部門銷售額為 27 億美元，成長 7%。

Higher volumes more than offset price declines.

銷量增加足以抵銷價格下跌的影響。

Net income was up slightly.

淨利潤小幅成長。

Display manufacturing efficiencies were impacted in the first half of the year by air freight costs, but for the full year, manufacturing cost per square foot decreased.

上半年顯示器製造效率受到空運成本的影響，但全年每平方英尺的製造成本有所下降。

Customer agreements that stabilize our share have helped the manufacturing organization manage capacity to demand.

穩定我們份額的客戶協議幫助製造組織管理需求產能。

And we look forward to the renewed agreements maintaining that stability in 2014.

我們期待 2014 年更新的協定能夠維持這種穩定性。

Now turning to the industry, we estimate the glass market at retail for 2013 was almost 4 billion square feet, up about 10%.

現在轉向產業，我們估計 2013 年玻璃零售市場規模接近 40 億平方英尺，成長約 10%。

Our preliminary estimates of TV sell-in indicate year-over-year unit sales were up slightly.

我們對電視銷售的初步估計顯示單位銷售量較去年同期略有上升。

All regions except Europe and Japan grew unit sales year over year.

除歐洲和日本外的所有地區銷售均較去年同期成長。

Average TV screen size increased again in 2013 and drove glass market growth.

2013 年電視平均螢幕尺寸再次增加，推動了玻璃市場的成長。

We estimate TV area growth was up more than 10%, and 50-inch televisions grew 90% in 2013.

我們估計 2013 年電視面積成長超過 10%，其中 50 吋電視成長 90%。

On the supply chain front, we estimate inventory ended the year at about 17 weeks, and is spread fairly evenly along the supply chain.

在供應鏈方面，我們估計年底庫存約為 17 週，並且在供應鏈上分佈相當均勻。

This is in the range we would consider healthy and reasonable for entering 2014.

這在我們認為進入 2014 年的健康且合理的範圍內。

I'll talk more about the industry in our outlook shortly.

我很快就會在我們的展望中更多地談論這個行業。

Now, we've renamed our telecommunications segment Optical Communications.

現在，我們已將電信部門更名為光通訊部門。

For those of you not familiar with this 40 year young business, we invented the world's first low loss optical fiber in 1970.

對於那些不熟悉這個 40 年年輕企業的人來說，我們在 1970 年發明了世界上第一條低損耗光纖。

Over the last 40 years, in addition to manufacturing optical fiber and cable, we have increasingly moved into providing optical solutions that include hardware and equipment.

在過去的 40 年裡，除了製造光纖和光纜之外，我們也越來越多地提供包括硬體和設備在內的光學解決方案。

Today, we are a comprehensive provider of industry moving optical solutions across the broader communications industry.

如今，我們是跨更廣泛的通訊行業的行業行動光學解決方案的綜合提供者。

The new name better reflects the major communications groups that we serve, carrier, or public networks, and enterprise or private networks.

新名稱更能反映了我們所服務的主要通訊集團、營運商或公共網路以及企業或專用網路。

These segments will -- this segment will be classified in those two main categories, carrier networks and enterprise networks, and we'll be providing more details in the upcoming 10-K.

這些細分市場將分為兩個主要類別：營運商網路和企業網絡，我們將在即將發布的 10-K 中提供更多詳細資訊。

In Optical Communications, Q4 sales were $605 million, up 12% versus last year and better than we had expected.

在光通訊領域，第四季銷售額為 6.05 億美元，比去年成長 12%，優於我們的預期。

Carrier sales in North America drove the increase versus expectations.

北美營運商的銷售推動了這一成長，超出了預期。

Net income, however, was down 18%; the primary driver of the decline was product mix with higher sales volume of lower margin products than in Q4 of 2013.

然而，淨利潤下降了 18%；下降的主要驅動因素是產品結構，與 2013 年第四季相比，低利潤產品的銷售量更高。

Also contributing to the year-over-year earnings decline were price declines and our decision to scale back optical fiber production.

價格下跌以及我們縮減光纖產量的決定也是導致獲利年減的原因。

For the full year, sales were $2.3 billion, up 9%.

全年銷售額達 23 億美元，成長 9%。

Sales in all regions were up year over year.

所有地區的銷售額均較去年同期成長。

Carrier, including wireless and enterprise sales, were both up, offsetting fiber weaknesses in China.

包括無線和企業在內的營運商銷售額均有所成長，抵銷了中國光纖市場的弱點。

We're very pleased with these results.

我們對這些結果非常滿意。

Optical Communications annual net income in 2013 was up 43%.

光通訊2013年淨利年增43%。

The additional sales volume and manufacturing efficiencies drove the improvement, offsetting the year-over-year price declines of certain products and the unfavorable mix.

銷量的增加和製造效率的提高推動了業績的改善，抵消了某些產品的同比價格下降和不利的組合。

Now in our Environmental segment, Q4 sales were $238 million, up 9% versus last year and better than we had expected.

現在，在我們的環境部門，第四季銷售額為 2.38 億美元，比去年成長 9%，比我們的預期好。

We saw positive indicators in the US heavy duty truck market, and European demand for light duty diesel products bounced back a little in the fourth quarter.

我們看到美國重型卡車市場出現正面跡象，歐洲對輕型柴油產品的需求在第四季略有反彈。

Net income was up 124% versus a weak fourth quarter last year, driven by volume gains in diesel and auto.

在柴油和汽車銷售成長的推動下，淨利潤比去年第四季的疲軟成長了 124%。

For the full year, Environmental sales were down 5%, driven primarily by lower sales of diesel products due to weak demand for diesel cars in Europe and lower Class 8 truck production in North America.

全年環保銷售下降 5%，主要是由於歐洲柴油車需求疲軟以及北美 8 級卡車產量下降導致柴油產品銷售下降。

Now, despite these lower sales, Environmental expanded their gross margins and grew net income by 9% in 2013, due to significant manufacturing efficiency improvements and reductions in operating expense.

現在，儘管銷售額下降，但由於製造效率的顯著提高和營運費用的減少，2013 年環境公司的毛利率有所提高，淨利潤增長了 9%。

We were delighted by the performance in Environmental and believe the business is now well-positioned with this improved margin structure and growth coming from the heavy duty market in China and Europe.

我們對環境業務的表現感到高興，並相信由於利潤結構的改善以及來自中國和歐洲重型市場的成長，該業務目前處於有利地位。

Specialty Materials sales for the quarter were down 29% year over year, and below our expectations.

本季特種材料銷售額年減 29%，低於我們的預期。

As you recall, Gorilla Glass sales in Q4 of 2012 were very strong, as device manufacturers prepared for 2013.

正如您所記得的，隨著設備製造商為 2013 年做準備，2012 年第四季的大猩猩玻璃銷量非常強勁。

As 2013 unfolded, it became apparent that some of the 2012 Q4 strength created an inventory overhang that was with us through most of last year.

隨著 2013 年的到來，2012 年第四季的一些強勁表現顯然造成了庫存積壓，這種情況在去年的大部分時間裡一直困擾著我們。

The softness versus our original expectation down 20% was due primarily to lower volume of Gorilla Glass for touch notebooks.

與我們最初的預期相比，柔軟度下降了 20%，這主要是由於用於觸控筆記型電腦的大猩猩玻璃的用量減少。

Advanced optics sales were up year over year driven by a recovery in the semiconductor industry.

在半導體產業復甦的推動下，先進光學元件的銷售額年增。

Net income in Q4 was down year over year, driven by the volume decline of Gorilla Glass and year-over-year expected price declines.

由於大猩猩玻璃銷量下降和預期價格年減，第四季淨利潤年減。

For the full year, Specialty sales were down 13%.

全年特種產品銷售額下降 13%。

Decline was mainly driven by the supply chain overbuild I just described and also by much lower sales of large cover glass for television, which had been about $40 million in 2012, as well as some yield improvements in the supply chain.

下降的主要原因是我剛剛描述的供應鏈過度建設，以及電視大型蓋板玻璃銷售額的大幅下降（2012 年約為 4000 萬美元），以及供應鏈產量的一些提高。

We believe consumption of cover glass was up about 27% in 2013, will be up again in 2014.

我們認為 2013 年蓋板玻璃的消費量成長了約 27%，2014 年將再次成長。

We expect to see volume growth of Gorilla Glass more in line with consumption in 2014, and we'll be providing more details at our annual investor meeting on February 7. Advanced optics full year sales were consistent with 2012.

我們預計大猩猩玻璃的銷售成長將更加符合 2014 年的消費量，我們將在 2 月 7 日的年度投資者會議上提供更多詳細資訊。先進光學全年銷售額與 2012 年一致。

Net income for the full year is a very good story.

全年淨利潤是一個非常好的故事。

Gorilla Glass had another year of manufacturing efficiency improvements that led to segment gross margin improvement of 13%.

大猩猩玻璃的製造效率又提高了一年，導致該部門的毛利率提高了 13%。

Net income was down only $5 million or 2% on a 13% sales decline.

銷售額下降 13%，淨利僅下降 500 萬美元或 2%。

Now, turning to Life Sciences.

現在，轉向生命科學。

Q4 sales were up year over year, due to additional sales from our acquisition, which closed October 31 of 2012.

由於我們於 2012 年 10 月 31 日完成的收購帶來了額外的銷售額，第四季度銷售額同比增長。

Net income was up 31% on the additional sales.

額外銷售額帶來的淨利潤增加了 31%。

For the year, Life Sciences sales were $851 million, up 30%, primarily driven by the Discovery Labware acquisition.

生命科學業務 2019 年銷售額為 8.51 億美元，成長 30%，這主要是由 Discovery Labware 收購推動的。

Net income was up 92%, driven by the increased volume from the acquisition and very tight control on S&A and RD&E cost.

淨利潤增加了 92%，這得益於收購數量的增加以及對 S&A 和 RD&E 成本的嚴格控制。

We were also delighted by Life Science performance in 2013, with the excellent integration of the acquisition delivering incremental profits, and we accomplished this despite the reduced market due to lower NIH funding.

我們也對 2013 年生命科學領域的表現感到高興，收購的出色整合帶來了增量利潤，儘管由於 NIH 資金減少導致市場萎縮，但我們還是實現了這一目標。

At Dow Corning, gross equity earnings from silicone segment were up slightly in Q4, driven by the higher volume and lower taxes.

在道康寧，由於產量增加和稅收降低，第四季度有機矽部門的總股本收益略有增加。

Price and FX partially offset these gains.

價格和匯率部分抵銷了這些收益。

In 2013, Dow Corning sales were down slightly, driven by price and volume declines, particularly in Europe and China.

2013 年，由於價格和銷量下降，特別是在歐洲和中國，道康寧銷售額略有下降。

But their net income and our equity earnings were up slightly for the year as a result of the restructuring actions they took in 2012.

但由於 2012 年採取的重組行動，他們的淨利潤和我們的股本收益今年略有增長。

Now, on the balance sheet, we ended the fourth quarter with $5.2 billion in cash and short-term investments.

現在，在資產負債表上，我們第四季末的現金和短期投資為 52 億美元。

We had strong free cash flow for the quarter of about $500 million, despite spending $337 million in capital spending, and also the cash payment made to the minority shareholders for their share of SCP.

儘管我們花費了 3.37 億美元的資本支出以及向少數股東支付 SCP 份額的現金，但我們本季的自由現金流約為 5 億美元。

We were able to complete the buyout of the minority holders in December.

我們在 12 月完成了對少數股東的收購。

The purchase of Samsung shares of SCP occurred in January.

三星於 1 月購買了 SCP 股票。

During the quarter, we also issued $250 million of senior unsecured notes.

本季度，我們也發行了 2.5 億美元的優先無擔保票據。

As a reminder, free cash flow is a non-GAAP measure.

提醒一下，自由現金流是一項非公認會計準則衡量標準。

The reconciliation to GAAP can be found on our website.

GAAP 調整表可在我們的網站上找到。

We ended the quarter with approximately $1.6 billion in cash in the United States.

本季結束時，我們在美國的現金約為 16 億美元。

Capital spending for the year turned out to be only $1 billion and below our forecast.

今年的資本支出僅 10 億美元，低於我們的預測。

Some expansion projects slowed their pace of spending to meet the expected demand level during the back half of 2013.

一些擴建項目放慢了支出步伐，以滿足 2013 年下半年的預期需求水準。

Now I'll go to the outlook, and I'll start with display.

現在我將進入 Outlook，並從顯示開始。

Since we'll be consolidating SCP, which has now been renamed to be Corning Precision Materials or CPM, let me begin by how to estimate the impact on the display segment sales and earnings.

由於我們將合併 SCP（現已更名為康寧精密材料公司或 CPM），因此讓我先介紹如何估計對顯示器部門銷售和收益的影響。

We expect approximately $2 billion in additional sales in display segment this year and next from consolidating 100% of CPM's LCD glass sales.

我們預計，透過整合 100% 的 CPM LCD 玻璃銷售額，今年和明年顯示器領域的銷售額將增加約 20 億美元。

You should calculate cost of goods sold based on your sales assumption, including depreciation to get to gross margin.

您應該根據銷售假設計算銷售成本，包括折舊以獲得毛利率。

I urge you to remember that CPM did have lower performance in the back half of 2013, so please think about that performance level.

我強烈建議您記住，CPM 在 2013 年下半年的表現確實較低，因此請考慮該表現水準。

You must add their operating expense to SG&A and R&D.

您必須將他們的營運費用添加到 SG&A 和 R&D 中。

You'll need to make an estimate of the impact of synergies to both cost of sales and SG&A.

您需要估計綜效對銷售成本和銷售管理費用的影響。

Now, we're just completing the close in Q1, so the synergies in this quarter will be low.

現在，我們剛完成第一季的收尾工作，因此本季的綜效將會很低。

We expect them to ramp up rapidly in Q2 and through the remainder of the year.

我們預計它們將在第二季和今年剩餘時間內迅速增加。

Now, finally, please remember that CPM will not have the benefit of interest income anymore due to the dividend strip.

最後，請記住，由於股息剝離，CPM 將不再享受利息收入的好處。

This obviously gets you to net profit before taxes for the display segment.

這顯然可以讓您獲得顯示器部分的稅前淨利。

Corning's overall tax rate will change.

康寧的整體稅率將會改變。

Corning's taxes will now include the taxes paid by CPM in Korea; expect our total effective tax rate to move from 17% in 2013 to approximately 22% in 2014.

康寧的稅款現在將包括 CPM 在韓國繳納的稅款；預計我們的總有效稅率將從 2013 年的 17% 升至 2014 年的約 22%。

We will have amortization of intangibles and goodwill from the acquisition.

我們將從收購中攤銷無形資產和商譽。

As with other deals, we record these outside core earnings.

與其他交易一樣，我們記錄這些外部核心收益。

Another area the consolidation impacts is our balance sheet.

合併影響的另一個領域是我們的資產負債表。

These changes are pretty straightforward.

這些變化非常簡單。

You need to subtract CPM from our investment balance and add the entity into assets and liabilities.

您需要從我們的投資餘額中減去CPM，並將該實體加到資產和負債中。

Finally, there are cash flows.

最後，還有現金流。

In this case, you need to remember that $98 million cash dividend payment to Samsung, but remember, Corning will also no longer be getting cash dividends from CPM.

在這種情況下，您需要記住向三星支付了 9800 萬美元現金股息，但請記住，康寧也將不再從 CPM 獲得現金股息。

However, we expect an additional $400 million to $500 million in free cash flow from CPM's operations.

然而，我們預計 CPM 的營運將帶來 4 億至 5 億美元的額外自由現金流。

We'll be providing detailed pro forma financial statements in March for investors to update their models with this information.

我們將在三月提供詳細的預期財務報表，供投資者使用這些資訊更新他們的模型。

Ann and Steven will be happy to answer any modeling questions you have, as well.

安和史蒂文也很樂意回答您的任何建模問題。

Turning to the industry, we feel good about the glass market as we enter 2014.

談到產業，進入2014年，我們對玻璃市場感覺良好。

Inventory levels appear healthy.

庫存水準看起來很健康。

Glass supply seems aligned with demand, and we expect another year of glass volume growth at retail.

玻璃供應似乎與需求一致，我們預計玻璃零售量又將成長一年。

Key contracts we entered into in late 2012 were renewed and extended into 2014.

我們於 2012 年底簽訂的主要合約已續約並延長至 2014 年。

We expect our share to be stable in Q1 and throughout 2014.

我們預計我們的份額在第一季和 2014 年全年將保持穩定。

Now, for the end market in 2014, we expect the retail market as measured in square feet of glass will be up mid- to high-single digits.

現在，對於 2014 年的終端市場，我們預計以玻璃平方英尺計算的零售市場將出現中高個位數成長。

For reference, 2013 was nearly 4 billion square feet.

作為參考，2013 年面積接近 40 億平方英尺。

Big LCD television units grow in the low- to mid-single digits, with area growth likely higher.

大型液晶電視單位的成長幅度為中低個位數，面積成長可能更高。

We believe the trend of consumers to buy large televisions will continue.

我們相信消費者購買大電視的趨勢將持續下去。

We believe there will be PC market growth, expecting 7% to 12% year-over-year unit growth, with nearly all of it attributable to tablets.

我們相信 PC 市場將會成長，預計銷量年增 7% 至 12%，其中幾乎所有成長都歸因於平板電腦。

Monitor and notebook units are expected to be flat.

顯示器和筆記型電腦銷量預計持平。

As we near the end of January, we see the Q1 LCD glass market declining low-single digits sequentially.

隨著一月底的臨近，我們看到第一季液晶玻璃市場較上季出現低個位數下滑。

This reflects normal seasonality, and, of course, the fewer shipping days in February compared to Q4.

這反映了正常的季節性，當然，與第四季相比，二月的運輸天數較少。

We expect our glass volume to be down in line with this market.

我們預計我們的玻璃產量將隨著市場的變化而下降。

Recall Q2 is the slowest retail season, so the supply chain should moderate in Q1 to manage inventory.

回想一下，第二季是零售最慢的季節，因此供應鏈應該在第一季進行適度調整以管理庫存。

You should note the LCD glass market and our volumes in Q1 are up year over year, reflecting an overall larger market.

您應該注意到液晶玻璃市場和我們第一季的銷售量年增，反映出整體市場規模更大。

Now, we expect price declines in Q1 to be higher than the previous quarters.

現在，我們預計第一季的價格跌幅將高於前幾個季度。

Recall when we first announced the new contracts in late 2012, they had mechanisms to adjust Corning's pricing at customers in accordance with competitive pricing at that customer.

回想一下，當我們在 2012 年底首次宣布新合約時，他們有機制根據客戶的競爭性定價調整康寧的定價。

The higher Q1 decline is driven by the price mechanisms in these contracts.

第一季的較大跌幅是由這些合約的價格機制所推動的。

We don't know why the competition did the larger move.

我們不知道為什麼競爭對手做出了更大的舉動。

We suspect it may be related to compressing price differences among their customers.

我們懷疑這可能與壓縮客戶之間的價格差異有關。

We anticipate our price declines will return to more moderate levels after Q1 for several reasons.

由於多種原因，我們預計第一季後價格跌幅將恢復到較溫和的水平。

First, as I mentioned, we suspect the larger decline was related to competitors compressing price differences among their customers.

首先，正如我所提到的，我們懷疑較大的下降與競爭對手壓縮客戶之間的價格差異有關。

Second, we believe that if prices were to continue to decline like they are in Q1, our competition would soon be incurring losses.

其次，我們認為，如果價格像第一季一樣繼續下跌，我們的競爭對手很快就會蒙受損失。

Publicly available information shows our competitors are already operating their businesses with thin margins.

公開資訊顯示，我們的競爭對手已經在以微薄的利潤經營他們的業務。

Prices can only go down so much further before these competitors will be at or below breakeven.

在這些競爭對手達到或低於損益兩平之前，價格只能進一步下降。

At those prices, though, Corning's business would be still quite profitable.

不過，以這些價格，康寧的業務仍然相當有利可圖。

Our analysis shows our costs are already lower than our competitors' by a substantial percentage, and we anticipate this big cost advantage will only get bigger as we integrate the manufacturing assets of CPM.

我們的分析表明，我們的成本已經比競爭對手低了很多，我們預計，隨著我們整合 CPM 的製造資產，這種巨大的成本優勢只會變得更大。

So even if our competitors were to drop price to where they'd be at or below breakeven, we would still be generating a very healthy profit.

因此，即使我們的競爭對手將價格降至損益平衡點或以下，我們仍然會產生非常可觀的利潤。

Now, as for our glass capacity, I want to reiterate, we intend to diligently manage our capacity to supply.

現在，對於我們的玻璃產能，我想重申，我們打算努力管理我們的供應能力。

Our new Korean entity, CPM, provides access to low cost capacity, enabling us to optimize our manufacturing footprint and preserve profitability.

我們新的韓國實體 CPM 提供低成本產能，使我們能夠優化我們的製造足跡並保持獲利能力。

Now, moving to Optical Communications, we expect Q1 sales to be up in the mid-teens versus Q1 of 2013.

現在，轉向光通訊領域，我們預計第一季銷售額將比 2013 年第一季成長 15%左右。

You may recall, Q1 of 2012 was a slow start to last year -- excuse me, 2013, particularly in North America, Europe and China, and did not have the sales from consolidation of an equity affiliated acquisition.

您可能還記得，2012 年第一季的開局比去年緩慢——對不起，2013 年，特別是在北美、歐洲和中國，沒有來自股權附屬收購合併的銷售。

We expect higher year-over-year sales in carrier and enterprise in all regions except China.

我們預計除中國以外的所有地區營運商和企業的銷售額將同比增長。

In Environmental, we expect Q1 sales to be up mid-single digits year over year, driven by the pickup in heavy duty diesel sales, due to new regulations in Europe and China.

在環境方面，我們預計第一季的銷售量將年增中個位數，這是由於歐洲和中國的新法規導致重型柴油銷售回升的推動。

We're pleased to see this demand from the new regulations and expect it to drive our growth in heavy duty sales and profitability in 2014.

我們很高興看到新法規提出的這項需求，並預計它將推動我們 2014 年重型汽車銷售和獲利能力的成長。

Of course, we'll have more detail on this segment at our IR day next week.

當然，我們將在下週的投資者關係日上提供有關此部分的更多詳細資訊。

We expect Specialty Materials sales to be consistent year over year in Q1.

我們預計第一季特種材料銷售額將與去年同期持平。

For comparative purposes, specialty material sales have always been weakest in the first quarter, as you can see in this chart.

出於比較目的，特種材料銷售在第一季一直是最弱的，正如您在此圖表中看到的那樣。

We do believe Gorilla Glass volume will be up significantly for the year and better aligned with cover glass consumption.

我們確實相信大猩猩玻璃的銷量今年將大幅增加，並且與蓋板玻璃的消耗量更能保持一致。

Expect moderate price declines in 2014, similar to 2013.

預計 2014 年價格將溫和下跌，與 2013 年類似。

Although 2013 was not what we expected in terms of sales, we remain excited by what lies ahead for Gorilla Glass.

儘管 2013 年的銷量沒有達到我們的預期，但我們仍然對大猩猩玻璃的未來感到興奮。

Those of you who went to Consumer Electronics Show saw firsthand our new product introductions.

參加消費電子展的人親眼目睹了我們的新產品介紹。

Our legendary Gorilla Glass is now thinner.

我們傳奇的大猩猩玻璃現在變得更薄了。

It is now available as the world's first anti-microbial cover glass.

它現在是世界上第一個抗菌蓋玻璃。

It can be anti-reflective and also manufactured in 3D shapes is extending into new markets.

它可以防反射，並且還可以以 3D 形狀製造，正在擴展到新市場。

We will share more details at our investor meeting next week.

我們將在下週的投資者會議上分享更多細節。

In Life Sciences, we expect sales to be consistent with last year's first quarter.

在生命科學領域，我們預計銷售額將與去年第一季保持一致。

Equity earnings from Dow Corning should be up for the total year; however, Q1 will be down versus a year ago because some one-time favorable items that occurred a year ago don't repeat.

道康寧全年的股本收益應該會上升；然而，第一季將比一年前下降，因為一年前發生的一些一次性有利項目不會重複。

We expect gross margin to be almost 45%, driven by Environmental's additional volume and display.

我們預計毛利率將接近 45%，這主要得益於環境公司銷量和展示量的增加。

Display gross margins improved versus last year, due to having no air freight cost and, of course, the consolidation of CPM.

由於沒有空運成本，當然還有 CPM 的整合，顯示器毛利率比去年有所提高。

SG&A and R&D will be lower year over year as a percentage of sales.

SG&A 和研發佔銷售額的百分比將年減。

In modeling total equity earnings in Q1 and going forward, it will be predominantly from the Dow Corning equity earnings.

在對第一季及未來的總股本收益進行建模時，它將主要來自道康寧公司的股本收益。

Our other equity ventures are relatively small and do not materially add to our results.

我們的其他股權投資規模相對較小，不會對我們的業績產生實質貢獻。

Our effective tax rate for 2014 should be approximately 22%.

我們2014 年的有效稅率應約為22%。

Projected rate is higher than 2013 driven by the addition of CPM's income, which is taxed at the Korean tax rate of 24%.

由於 CPM 的收入按韓國 24% 的稅率徵稅，預計稅率將高於 2013 年。

That concludes my opening comments.

我的開場白就到此結束。

Ann?

安？

Thank you, Jim.

謝謝你，吉姆。

Tom, we will now open the lines for questions.

湯姆，我們現在開始提問。

(Operator Instructions)

（操作員說明）

Our first question today comes from the line of Wamsi Mohan from Bank of America.

我們今天的第一個問題來自美國銀行的 Wamsi Mohan。

Please go ahead.

請繼續。

Yes, thank you.

是的，謝謝。

Good morning.

早安.

Jim, you noted that this weaker pricing in Q1 could be temporary, but let's say that there is some irrational behavior in the market and it persists for a little bit longer in the year.

吉姆，您指出，第一季的定價疲軟可能是暫時的，但假設市場存在一些非理性行為，而這種情況在今年持續了更長的時間。

Given your comments around what the retail square footage growth is, is it reasonable to assume a base case that display revenue would actually contract in 2014?

鑑於您對零售面積成長的評論，假設 2014 年展示收入實際收縮的基本情況是否合理？

Well, it obviously depends on whether the higher price declines continue all year long.

嗯，這顯然取決於更高的價格下跌是否會持續一整年。

You can do the math as well as I can.

你可以像我一樣做數學。

You can make that case.

你可以證明這一點。

I emphasize again we believe that price declines will return to more moderate levels in Q2 and beyond.

我再次強調，我們相信第二季及以後價格跌幅將恢復到更溫和的水平。

But given the fact that the retail square footage, Jim, is going to expand in the mid to high single digits, even if we go to traditional price declines of high single digit, we're talking about roughly flattish; is that right?

但吉姆，考慮到零售面積將以中位數到高個位數的速度擴張，即使我們按照傳統的高個位數價格下降，我們談論的也大致持平；是對的嗎？

Very possible that that's how the math would work.

很可能這就是數學的原理。

And as a quick follow-up, can you address the weaker performance in Specialty?

作為快速跟進，您能解決專業領域較弱的表現嗎？

Do you think the issue is anything unrelated to inventory, maybe answer that in light of competitive cover glass and sapphires and alternative material.

您認為這個問題與庫存無關嗎？也許可以根據有競爭力的蓋板玻璃、藍寶石和替代材料來回答這個問題。

Thanks.

謝謝。

So we believe that the Specialty Materials results first in Q4 were weaker than our original expectations because of touch-on notebook missed our goal.

因此，我們認為，由於觸控筆記型電腦未能實現我們的目標，第四季度特種材料業績首先弱於我們最初的預期。

Everything else was in line with what we expected.

其他一切都符合我們的預期。

We believe we've been dealing with this supply chain issue that occurred in the fourth quarter 2012 all year long.

我們相信我們全年都在處理 2012 年第四季發生的供應鏈問題。

We think we're done with that.

我們認為我們已經完成了。

We do not feel we are losing market share to other silica high-performance glasses in any material amount.

我們並不認為我們的市場份額正在被其他二氧化矽高性能玻璃以任何實質的數量流失。

We do at lower end items compete with soda-lime, and we have yet to see any evidence of sapphire on any devices.

我們確實在低端產品上與鈉鈣競爭，但我們尚未在任何設備上看到藍寶石的任何證據。

So again, the performance last year we attribute to this carryover a large amount of square feet in the supply chain and then second, the fact that on notebooks did not grow against our expectations.

因此，我們再次將去年的業績歸因於供應鏈中大量的結轉，其次，筆記型電腦的成長並沒有超出我們的預期。

Thanks, Jim.

謝謝，吉姆。

Next question today comes from the line of Mehdi Hosseini with SIG.

今天的下一個問題來自 SIG 的 Mehdi Hosseini。

Please go ahead.

請繼續。

Thanks for taking my question.

感謝您提出我的問題。

Just a clarification.

只是一個澄清。

Did you say that on a square foot, the TV application grew 10% and this year's going to grow by 5%?

您是否說以平方英尺計算，電視應用程式成長了 10%，今年將成長 5%？

Did I hear it right?

我沒聽錯吧？

I said that TV area growth grew 10% last year, and the area growth this year could be -- could approach that number.

我說過去年電視面積成長了 10%，今年的面積成長可能會接近這個數字。

Okay.

好的。

And then for just overall glass consumption, how does the TV mix in 2013 going to look like in 2014?

那麼就整體玻璃消費而言，2013 年的電視組合在 2014 年會是什麼樣子呢？

Televisions are in the low 60% range of total glass used.

電視所用玻璃總量的比例低於 60%。

No change from 2013 to 2014?

2013年到2014年沒有變化嗎？

Nothing significant.

沒什麼重要的。

Okay.

好的。

And then one last question on the Specialty Materials.

然後是關於特種材料的最後一個問題。

Can you help me understand the mix of Gorilla as a percentage of overall Specialty Materials and how is that mix going to change in 2014?

您能否幫助我了解 Gorilla 的組合佔整體特殊材料的百分比以及這種組合在 2014 年將如何變化？

I don't have the number handy, but Gorilla Glass will grow as a percentage overall Specialty Materials, and you can check in with Ann later if you want.

我手頭上沒有這個數字，但大猩猩玻璃在特殊材料中所佔的百分比將會增長，如果需要，您可以稍後與安聯繫。

She can get you the exact number.

她可以給你確切的數字。

Okay.

好的。

Thank you.

謝謝。

Next question comes from the line of Mark Sue, representing RBC Capital Markets.

下一個問題來自 RBC 資本市場代表 Mark Sue。

Please go ahead.

請繼續。

Thank you.

謝謝。

Good morning, gentlemen.

早安，先生們。

Jim, the working presumption when the pricing was adjusted for market share about a year ago was that the rational behavior should prevail.

吉姆，大約一年前根據市場佔有率調整定價時的工作假設是理性行為應該佔上風。

Yet when we see this pricing mechanisms kick in as competitors compress price, just wondering, recognizing that Corning's judiciary is to shareholders and your commitments to profitability and margins, you're also competing with companies who seem more focused on employment and just running the business as opposed to profits.

然而，當我們看到這種定價機制隨著競爭對手壓縮價格而啟動時，我們只是想知道，認識到康寧的司法機構是面向股東的，以及你對盈利能力和利潤率的承諾，你也在與那些似乎更關注就業、只經營業務的公司競爭。與利潤相反。

So is there any further thought that they will revert back to what is more normal in terms of pricing?

那麼是否有進一步的想法，他們會在定價方面恢復到更正常的水平？

I want to be careful about commenting too much on our competitors, but I will draw your attention to the fact after we put these agreements in -- we announced them in October of 2012 -- we had a period of time where moderate price declines happened quarter after quarter.

我想謹慎對待我們的競爭對手，但我會提請您注意這樣一個事實：在我們簽訂這些協議後（我們於 2012 年 10 月宣布了這些協議），我們經歷了一段時間價格適度下降一季又一季度。

We obviously can never know for sure what our competitors are doing and why, but as I outlined in my prepared comments, we suspect that they may have had a compression issue that they had to deal with between some of their customers, and that may have led them to make this larger decline in this quarter.

顯然，我們永遠無法確定我們的競爭對手在做什麼以及為什麼，但正如我在準備好的評論中概述的那樣，我們懷疑他們可能遇到了必須在一些客戶之間處理的壓縮問題，這可能會導致導致他們在本季出現更大的跌幅。

I can't comment beyond that on our competitors' motivations and what they're intending to do.

除此之外，我無法對競爭對手的動機和他們打算做什麼發表評論。

I can only point to you the fact that basically in the four quarters prior of 2013, we had moderate price declines.

我只能向您指出這樣一個事實：基本上在 2013 年之前的四個季度中，我們的價格出現了適度的下降。

And then maybe on CapEx, you underspent in CapEx in 2013.

然後，也許在資本支出方面，您 2013 年的資本支出不足。

How should we recalibrate your assumptions for 2014?

我們該如何重新調整您對 2014 年的假設？

And along those lines, as we look for growth opportunities ahead, can you just talk about maybe what will be the new things we should be looking for, maybe touch notebooks, automobile applications such as the BMW I8, or what do you see percolating for higher demand in the next few years?

沿著這些思路，當我們尋找未來的成長機會時，您能否談談我們應該尋找的新事物是什麼，也許是觸摸筆記型電腦、寶馬 I8 等汽車應用，或者您認為滲透的是什麼未來幾年需求會更高嗎？

Sure.

當然。

Let me talk about CapEx.

讓我談談資本支出。

We had previously given guidance for 2014 of [$1.3 billion].

我們先前給出的 2014 年指引值為 [13 億美元]。

That will not -- the lower spending in 2013 will not add to that.

但這不會——2013 年支出的減少不會增加這一點。

So the only thing would add to it is CPM, which I think we've told you before would be about $200 million.

因此，唯一會增加的就是每千次曝光費用，我想我們之前已經告訴過你大約是 2 億美元。

So our guidance is $1.5 billion for 2014.

因此，我們 2014 年的指導值為 15 億美元。

There's no carryover that's going to affect and drive the number up because we underspent last year.

沒有任何結轉會影響和推高這個數字，因為我們去年支出不足。

As far as growth prospects going forward, Mark, I'd like to just reserve on that because in about 10 days' time, you will have an opportunity to see what we're talking about in terms of growth.

至於未來的成長前景，馬克，我想保留這一點，因為在大約 10 天的時間裡，你將有機會看到我們正在談論的成長方面的內容。

And actually the whole theme of Investor Relations day is about growing the Company.

事實上，投資者關係日的整個主題是關於公司的發展。

We have as I said in my opening remarks, feel like we've achieved our primary objective over the past year, which was to stop going down and start growing up.

正如我在開場白中所說，我們感覺我們已經實現了過去一年的主要目標，即停止下滑並開始成長。

We've done that.

我們已經做到了。

But the key to us growing further is going to grow sales, and that will be the theme of the day, and we and hope you will be able to attend.

但我們進一步發展的關鍵是增加銷量，這將是當天的主題，我們並希望您能夠參加。

Thank you.

謝謝。

Question comes from the line of Amitabh Passi with UBS.

問題來自 Amitabh Passi 與 UBS 的電話線。

Please go ahead.

請繼續。

Hi, thank you.

嗨，謝謝你。

Couple from me.

一對從我開始。

Jim, I wanted to clarify, the gross margin guidance of 45%, was that for the full year or just the first calendar quarter?

吉姆，我想澄清一下，45% 的毛利率指引是全年的還是僅第一季的？

That was for the first calendar quarter.

這是第一季的情況。

Any help in terms of how we should be thinking about your synergy expectations and how they flow through the year?

對於我們應該如何考慮您的協同效應期望以及它們如何在這一年中發揮作用，有什麼幫助嗎？

I know you put out a schedule when you did the transaction.

我知道你在進行交易時制定了時間表。

Are those numbers still reasonably accurate, or if you could give us any guidance in terms of the quarter to quarter progression on the synergy front.

這些數字是否仍然相當準確，或者您是否可以就協同方面的季度進度向我們提供任何指導。

The numbers overall are pretty accurate.

整體而言，數字相當準確。

You're not going to get much of it in Q1.

在第一季你不會得到太多。

I would say Q2 will be -- you take the amount we gave you and then divide it by three quarters.

我想說第二季是——你把我們給你的金額除以四分之三。

Q2 would probably be a little less than that, and then Q3 and Q4 will be in full bloom on that.

Q2 可能會比這個少一點，然後 Q3 和 Q4 將在此基礎上全面開花。

And the CFO of display sector yesterday informed me, he's prepared to report out on synergies to investors as we go along, he's so confident.

顯示部門的財務長昨天告訴我，他準備在我們進行過程中向投資者報告協同效應，他非常有信心。

So we will be able to that for you.

所以我們可以為您做到這一點。

Finally, assuming glass revenues for the display segment are relatively consistent this year with 2013, given your commentary on synergies, is there still a potential to drive net income higher in 2014, even though we assume a flat to moderately down sales scenario?

最後，假設今年顯示器領域的玻璃收入與 2013 年相對一致，考慮到您對協同效應的評論，即使我們假設銷售情況持平或適度下降，2014 年是否仍有潛力推動淨利潤更高？

Sure, we're still backing our -- what we said in October, that we believe we can drive the fully diluted EPS of the Company up 20% this year.

當然，我們仍然支持我們在 10 月所說的，我們相信今年我們可以推動公司完全攤薄後的每股收益成長 20%。

Okay.

好的。

All right.

好的。

Thanks.

謝謝。

I will step back in queue.

我將退到隊列中。

Our next question comes from the line of Brian White from Cantor Fitzgerald.

我們的下一個問題來自康托·菲茨傑拉德 (Cantor Fitzgerald) 的布萊恩·懷特 (Brian White)。

Please go ahead.

請繼續。

I'm wondering if you can talk a little bit about 4K TVs, curve TVs, what you think it means to the TV market over the next couple years.

我想知道您是否可以談談 4K 電視、曲面電視，您認為這對未來幾年的電視市場意味著什麼。

And also some of the anti-microbial glass, what does it mean to Gorilla in terms of margins, upgrades, so on and so forth?

還有一些抗菌玻璃，這對 Gorilla 在利潤、升級等方面意味著什麼？

Because I think there's obviously big demand for that type of product.

因為我認為這種類型的產品顯然有很大的需求。

So in anti-microbial, we believe it enhances the results of Gorilla.

因此，在抗菌方面，我們相信它可以增強大猩猩的效果。

We have not detailed yet the pricing of it and the impact, but we believe it will enhance it.

我們還沒有詳細說明它的定價和影響，但我們相信它將增強它。

The key for us is obviously getting our first customer on a mobile device.

對我們來說，關鍵顯然是讓我們的第一個客戶使用行動裝置。

We have our first customers as we showed at CES already, which is Steelcase, which are using it on their little LCD panels they have on -- for offices.

正如我們在 CES 上展示的那樣，我們已經有了第一批客戶，那就是 Steelcase，他們正在辦公室使用的小型 LCD 面板上使用它。

But we need to get a cell phone.

但我們需要有一部手機。

But we believe it will be an enhancer over time.

但我們相信，隨著時間的推移，它將成為一種增強劑。

We're quite delighted by that.

我們對此感到非常高興。

Relative to television demand, we think ultra high definition will be a driver of replacement rate and -- but the pace of it, we're a little unsure of right now.

相對於電視需求，我們認為超高清將成為替代率的驅動因素，但我們現在有點不確定它的速度。

We think it's important.

我們認為這很重要。

Curved TVs, it's perhaps a little bit in the eye of the beholder.

曲面電視，或許有點情人眼裡出西施。

For some people, I think that that will be a reason that they would want to purchase a new television.

對於某些人來說，我認為這將是他們想要購買新電視的一個原因。

For us, it doesn't make any difference; the glass in the curved large televisions is the same as our normal glass.

對我們來說，這沒有什麼區別；曲面大電視中的玻璃與我們普通的玻璃相同。

But again, at our IR day, we're going to talk about how we see the replacement rate and the impact on the growth in televisions going forward.

但在我們的投資者關係日，我們將再次討論我們如何看待替代率以及對未來電視成長的影響。

I would say that our observation is ultra high definition is going to ultimately be a big driver of replacement rate, but the pace at which it happens is a little unclear to us now.

我想說的是，我們的觀察是超高清最終將成為替代率的一大推動力，但我們現在還不清楚它發生的速度。

Right.

正確的。

Thank you.

謝謝。

Our next question is from the line of Patrick Newton with Stifel.

我們的下一個問題來自帕特里克·牛頓和斯蒂菲爾。

Please go ahead.

請繼續。

Thank you.

謝謝。

Good morning.

早安.

I guess my first one for Jim, you discussed Gorilla Glass missing expectations almost entirely due to touch-on notebook in 4Q,

我想我給吉姆的第一個建議是，你討論了大猩猩玻璃未能達到預期幾乎完全是由於第四季度的觸控式筆記型電腦，

And touch-on notebook largely disappointed as we moved through 2013, so I'm curious if you could comment on why touch-on notebook missed expectations.

當我們進入 2013 年時，觸控式筆記型電腦在很大程度上令人失望，所以我很好奇您是否可以評論為什麼觸控筆記型電腦未達到預期。

Is it lack of penetration in touch SKUs relative to what you were hoping for?

相對於您的期望，觸摸 SKU 的滲透率是否較低？

Is it sell-through that was soft?

是軟的銷售率嗎？

Is it overall consumers are actually have a preference towards tablets rather than touch-on notebook?

總體而言，消費者實際上更喜歡平板電腦而不是觸控式筆記型電腦嗎？

What is that dynamic, and then how do you expect that to change as we move into 2014?

那麼，當我們進入 2014 年時，您預計這種情況會發生怎樣的變化？

Well, touch, I guess it's a lot of all of the above.

好吧，觸摸，我想上面的情況都有很多。

Touch-on notebooks has not grown as rapidly as we hoped and I think as the industry hopes.

觸控式筆記型電腦的成長速度沒有我們希望的那麼快，我認為也沒有業界希望的那麼快。

The detachables clearly have not been turned out to be a very big part of the market.

顯然，可拆卸設備還沒有成為市場的重要組成部分。

And so that's been a disappointment.

這令人失望。

Our own forecasts are that it will grow this upcoming year.

我們自己的預測是，它將在未來一年成長。

And then the other thing that we're experiencing, particular to us on particularly low end clam shell notebooks is we're having to compete with soda lime.

然後，我們正在經歷的另一件事，特別是對於我們特別低端的翻蓋筆記本來說，是我們必須與蘇打石灰競爭。

This is not with other aluminum silicate glasses.

這是其他鋁矽酸鹽玻璃所沒有的。

That's clearly a challenge for us.

這對我們來說顯然是一個挑戰。

We're working on a solution to it.

我們正在研究解決方案。

I think overall, the biggest thrust of this has been the disappointing take rate of touch-on notebooks by consumers.

我認為總體而言，最大的推動力是消費者對觸控式筆記型電腦的使用率令人失望。

Okay.

好的。

Thank you for that clarity.

謝謝你的澄清。

And then I guess a few quarters ago, you discussed LG Chem and talked about perhaps a second tank being a 2014 event and that you did not see them as a significant supplier in the industry.

然後我猜幾個季度前，您討論了 LG Chem，並談到也許第二個儲罐是 2014 年的活動，並且您並不認為他們是行業中的重要供應商。

I was just wondering if you could update us as to your expectations on or view of LG Chem as a competitor, especially as we move through 2014.

我只是想知道您是否可以向我們介紹一下您對 LG 化學作為競爭對手的期望或看法，特別是在我們即將進入 2014 年之際。

We do not feel LG Chem is a significant competitor at all.

我們根本不認為 LG 化學是重要的競爭對手。

Our observation obviously based on publicly available data and site looking from outside the gate is that the second tank is not lit, and it's likely to be a year later than they originally planned.

我們的觀察顯然是基於公開數據和從門外觀察的現場，第二個水箱沒有點亮，而且很可能比他們最初計劃的晚了一年。

Okay.

好的。

Jim, just one clarification on your tax rate.

吉姆，請對您的稅率做一澄清。

If I look at your corporate tax rate for 2013 and we incorporate the SCP 24% tax rate, to get to that 22% tax rate guidance would either imply that your core tax rate is increasing somewhat substantially year-over-year or that SCP earnings are going to accelerate.

如果我查看你們 2013 年的公司稅率，並納入 SCP 24% 的稅率，達到 22% 的稅率指導要么意味著你們的核心稅率同比大幅增加，要么意味著 SCP 收益將會加速。

Are one of those two fair assumptions?

這兩個假設之一是公平的嗎？

There's always things going on in our tax rate that we get some benefits, some things that may not repeat the next year.

我們的稅率總是會發生一些事情，我們會得到一些好處，有些事情可能不會在明年重複。

But I'm going to be addressing the tax rate in more detail at the IR event, so I will try to answer it more specifically then.

但我將在 IR 活動中更詳細地討論稅率，因此我將嘗試更具體地回答它。

Thank you.

謝謝。

Good luck.

祝你好運。

Our next question is from the line of Steven Fox with Cross Research.

我們的下一個問題來自 Cross Research 的 Steven Fox。

Please go ahead.

請繼續。

Thanks.

謝謝。

Good morning.

早安.

Just a couple questions on Gorilla Glass from me.

我有幾個關於大猩猩玻璃的問題。

First off, I know you want to save some stuff for the Analyst Day, but relative to I think the consumption growth of 27% that you talked about, Jim, what growth are you looking for 2014?

首先，我知道您想為分析師日保留一些東西，但相對於您談到的 27% 的消費增長，Jim，您期望 2014 年的增長是多少？

If not putting a number on it, can you talk qualitatively where you think things are better or worse?

如果沒有給出數字，您能否定性地談論您認為情況更好或更糟的地方？

Secondly, where are we at with potential further improvements in Gorilla Glass margins; have you optimized those exiting the year?

其次，大猩猩玻璃的利潤率進一步提高的潛力在哪裡？您對今年退出的內容進行優化了嗎？

Then lastly, just one minor detail, is Gorilla Glass going to remain as part of Specialty Materials going forward, or would there be a reorg coming with the SCP deal?

最後，只有一個小細節，大猩猩玻璃是否會繼續作為特種材料的一部分，或者是否會隨著 SCP 交易進行重組？

Thanks.

謝謝。

There's no reorganization coming.

重組不會到來。

Gorilla remains in Specialty Materials, which remains part of our Corning glass technologies group, which is led by Jim Clappin.

Gorilla 仍留在特殊材料部門，該部門仍屬於由 Jim Clappin 領導的康寧玻璃技術團隊。

So no change on reorganization.

因此重組方面沒有變化。

I expect our Gorilla Glass shipments in terms of volume to be up at least 30%, maybe a little bit higher than that this upcoming year.

我預計我們的大猩猩玻璃出貨量將成長至少 30%，可能比明年高一點。

I didn't quite catch your second question on gross margin.

我不太明白你關於毛利率的第二個問題。

Just in terms -- I know margins on Gorilla Glass have been improving during the year.

就具體而言，我知道大猩猩玻璃的利潤率在這一年裡一直在提高。

Is there still more room to improve margins off of that type of volume or how optimized are Gorilla Glass margins at this point?

這類銷售的利潤率是否還有更大的提升空間，或者大猩猩玻璃的利潤率目前如何優化？

There's fundamentally more opportunity to improve the gross margin.

從根本上來說，有更多機會提高毛利率。

One of the most exciting things I think about the acquisition of CPM is that we have traditionally made some of our Gorilla Glass on some of our older tanks, and as you know, CPM had some low cost tanks that were available.

關於收購 CPM，我認為最令人興奮的事情之一是，我們傳統上在一些舊的水箱上製造一些大猩猩玻璃，而且如您所知，CPM 有一些可用的低成本水箱。

So Gorilla can make there.

所以大猩猩可以到達那裡。

We clearly think we can improve margins on Gorilla going forward.

我們顯然認為我們可以提高 Gorilla 的利潤率。

Great.

偉大的。

Thank you very much.

非常感謝。

Next question is from the line of Ehud Gelblum with Citigroup.

下一個問題來自花旗集團的 Ehud Gelblum。

Couple questions.

幾個問題。

First of all, clarification.

首先，澄清一下。

There was a $338 million other income in the P&L, larger than -- much larger than last quarter.

損益表中有 3.38 億美元的其他收入，比上季多得多。

You mentioned something about a settlement in China that I missed.

你提到了一些我錯過的關於在中國達成和解的事情。

Are they related?

他們有關係嗎？

And can you explain what was -- can you just go over again what that settlement from China was, and was that what drove that $338 million?

您能否解釋一下——您能否再回顧一下來自中國的和解協議是什麼？這就是 3.38 億美元的驅動因素嗎？

The $338 million that you're referring to is our GAAP numbers.

您提到的 3.38 億美元是我們的 GAAP 數字。

That's where the FX hedge has to be.

這就是外匯對沖必須要做的事情。

Remember, what we did with core earnings is we do it flat at the 93.5 yen exchange rate.

請記住，我們對核心收益的處理是以 93.5 日圓匯率計算。

Our hedge really, because the yen has moved up so much, we actually have a big gain on the hedge that we have to mark-to-market.

我們的對沖確實如此，因為日圓已經升值這麼多，我們實際上在對沖上獲得了很大的收益，我們必須以市價計價。

You will see fluctuations on that.

你會看到這方面的波動。

We do that in the GAAP.

我們按照公認會計原則（GAAP）這樣做。

That's what's in the GAAP numbers.

這就是 GAAP 數據中的內容。

You've got to look at the other income and expense under core.

您必須查看核心下的其他收入和支出。

In core, we actually had some other income, other expense what we call that line.

本質上，我們實際上還有一些其他收入、其他支出，我們稱之為這條線。

We did have some favorable items in that this quarter, principally was a settlement that we reached on intellectual property dispute in China, and I think we outlined some of the details of that back in November.

本季我們確實有一些有利的項目，主要是我們就中國智慧財產權糾紛達成的和解，我想我們在 11 月就概述了其中的一些細節。

Do we have a size on how large that was?

我們有關於它有多大的尺寸嗎？

I don't think we've disclosed that yet.

我認為我們還沒有透露這一點。

Okay.

好的。

That's helpful.

這很有幫助。

Back to the price declines in Q1 competitively, what is the mechanism for you to learn of this?

回到第一季價格競爭性下降，您是透過什麼機制了解的？

Do your customers -- because you have these contracts with all of your customers, is that on November 30, one of them comes to you and says -- this is the price I'm getting, you need to match it.

你的客戶——因為你和所有客戶都有這些合同，所以在 11 月 30 日，其中一位客戶來找你說——這是我得到的價格，你需要匹配它。

Do they all come to you -- at what point did you learn about this?

他們都來找你嗎？你什麼時候了解這一點的？

Can you give us a sense as to how, magnitude wise, how much larger than the normal moderate price declines do we expect Q1 to be?

您能否告訴我們，我們預期第一季的價格下跌幅度將比正常的適度下跌幅度大多少？

First, we don't have these contracts at all of our customers.

首先，我們並非所有客戶都簽訂了這些合約。

We only have them at several.

我們只有幾個。

The way the contracts work, which is what we talked about back in fall of 2012, is that at the end of the quarter, I really mean the end of the quarter, our customers who have these contracts are required to tell us what the price that they got from competitors, through a mechanism at that customer.

合約的運作方式，也就是我們在 2012 年秋天討論的，是在季度末，我真正的意思是季度末，擁有這些合約的客戶需要告訴我們價格是多少他們透過該客戶的機制從競爭對手那裡獲得的訊息。

When they do that, then that becomes potentially our price under this contract.

當他們這樣做時，這可能成為我們在本合約下的價格。

And we have chosen to operate that way with these contracts and renew them.

我們選擇以這種方式運作這些合約並續簽它們。

So that's how it happened.

事情就是這樣發生的。

It happens literally at the end -- at the quarter.

它確實發生在季度末。

Relative to the level that we're seeing this upcoming quarter, I would say it's probably about double what we've been seeing.

相對於我們在即將到來的季度看到的水平，我想說它可能是我們所看到的水平的兩倍左右。

Okay.

好的。

That's helpful.

這很有幫助。

And remind me again, if customer A comes to you and tells you that they got a price lower than what you've been giving them, the contracts imply that you must match that at that customer.

再次提醒我，如果客戶 A 來找您並告訴您他們的價格低於您給他們的價格，則合約意味著您必須與該客戶相符。

Do you then have to take that to customers B, C and D that are under these same contracts and offer that same price even if they hadn't been offered that by your competitor?

那麼，您是否必須將其提供給簽訂相同合約的客戶 B、C 和 D，並提供相同的價格，即使您的競爭對手沒有向他們提供相同的價格？

No, it's very specific.

不，這是非常具體的。

The price at the customers who have this contract, it is set by this relationship at that customer.

擁有此合約的客戶的價格是由該客戶的這種關係決定的。

Okay.

好的。

That's very helpful.

這非常有幫助。

Can we infer then that, therefore, this price reset that is causing the lower price only happened at several customers and not at all the customers that have the contracts?

那麼我們是否可以推斷，導致價格降低的價格重置只發生在幾個客戶身上，而不是所有擁有合約的客戶身上？

I'm not going to say anything further about where it occurred.

我不會進一步透露事情發生的地點。

I appreciate that.

我很感激。

NEG adding capacity in China and opening up a new plant there.

NEG 在中國增加產能並開設新廠。

Is that something that you're factoring into your numbers, and finally, I have a final question on notebooks and NBT.

這是您將其納入數字中的因素嗎？最後，我有一個關於筆記型電腦和 NBT 的最後一個問題。

Relative to NEG, the announcement on Friday of them building melting capacity, it's our understanding from their public statements as well as what we've seen in analyst reports that they're going to be adding capacity, which is similar in size to what they added in Korea.

相對於 NEG，他們週五宣佈建立熔化能力，這是我們從他們的公開聲明以及我們在分析師報告中看到的了解，他們將增加產能，其規模與他們的產能相似。添加到韓國。

The public statements and also what have been reported by analysts is similar to what they did in Korea that they will be taking Japanese capacity offline and transferring equipment.

公開聲明以及分析師的報告與他們在韓國所做的類似，即他們將關閉日本產能並轉移設備。

We don't believe this new capacity based on what we've seen shows up in China for I think late -- it's 2015 and 2016.

根據我們所看到的情況，我們認為這種新產能不會在中國出現，我認為是在 2015 年和 2016 年。

And we think it's similar size as I said to Korea.

我們認為它的規模與我對韓國所說的相似。

So we're not anticipating much impact of this short term, and we believe that NEG has -- would have been supplying China from their Japanese capacity.

因此，我們預計短期內不會產生太大影響，我們相信 NEG 將會利用其日本產能向中國供貨。

And then as this new capacity comes up, obviously with transfer equipment at some of the Japanese capacity goes down.

然後，隨著新產能的增加，很明顯，一些日本產能的轉移設備會下降。

It's pretty obvious to us that NEG over the last few years has moved from being an all Japan model to having disbursed their capacity, to closer to their customers and perhaps away from earthquake zones.

對我們來說很明顯，NEG 在過去幾年中已經從全日本模式轉變為分配容量，更接近客戶，甚至可能遠離地震區。

So it seems rational to us.

所以這對我們來說似乎是合理的。

Okay.

好的。

Helpful.

有幫助。

And then finally, on touch notebooks, there was a target that you had several times during the year.

最後，在觸控筆記型電腦上，有一個您在一年中多次設定的目標。

I think it was you were going to exit the year at 10% -- not that you would exit the year at 10%, but 10% of notebooks would be touch exiting the year.

我認為你將以 10% 的成長率退出這一年——不是說你將以 10% 的成長率退出這一年，而是 10% 的筆記型電腦將在這一年退出。

Sounds like now you think that was a lower number.

聽起來現在你認為這個數字更低。

How much lower do you think it was, and where do you think -- do you have some sort of a target that you're looking for in 2014?

您認為會低多少？您認為 2014 年您是否有某種目標？

And you mentioned soda line being -- you go into Best Buy and you see pretty much almost all tablets or almost all notebooks seem to have touch now.

您提到蘇打水系列 - 您進入百思買，您將看到幾乎所有平板電腦或幾乎所有筆記型電腦現在似乎都具有觸控功能。

Maybe they have soda lime; it's hard to tell.

也許他們有鹼石灰；很難說。

How is your NBT that was basically supposed to compete with soda lime on the price point?

你們的NBT基本上應該在價格上與鈉石灰競爭，情況如何？

How is that competing?

這競爭怎麼樣？

Just trying to differentiate the market versus your competitive offering.

只是試圖將市場與您的競爭產品區分開來。

I don't have much information right now about NBT.

我現在沒有太多關於NBT的資訊。

If you come to the Investor Day, you can talk to Jim Steiner; he can give you an update on how it's going.

如果你來投資者日，你可以和 Jim Steiner 交談；他可以向您提供最新進展。

I think overall for the year, touch-on the notebook was 11%.

我認為今年總體而言，觸控筆記型電腦的比例為 11%。

I think in the fourth quarter, we estimate it was at 13%.

我認為第四季度，我們估計為 13%。

Okay.

好的。

I will leave it at that.

我就這樣吧。

I appreciate it.

我很感激。

Thank you.

謝謝。

We will go to the line of Simona Jankowski with Goldman Sachs.

我們將跟隨高盛的西蒙娜·揚科斯基 (Simona Jankowski) 的腳步。

Please go ahead.

請繼續。

Thanks very much.

非常感謝。

Just one more question on the pricing.

還有一個關於定價的問題。

What is the incentive for competitors to lower the price when you're contractually locked into a certain market share?

當您透過合約鎖定一定的市場份額時，競爭對手降低價格的動機是什麼？

Or is that just a play to try to take share from the number three, between the number two and three suppliers.

或者這只是試圖從第三名、第二名和第三名供應商之間奪取份額的遊戲。

I just wanted to clarify, the pricing reset was just the one customer or several?

我只是想澄清一下，定價重置只是針對一個客戶還是幾個客戶？

So we have not commented on the number of customers.

所以我們沒有對客戶數量發表評論。

It occurred at the customers we have the contracts with.

它發生在與我們簽訂合約的客戶身上。

In terms of the incentive, I can't really comment on motivations by our competitors.

在激勵方面，我無法真正評論我們競爭對手的動機。

The one that you talk about is obviously something that could have occurred, but I can't know for sure what our competitors are doing and why.

你所說的顯然是可能發生的事情，但我無法確定我們的競爭對手在做什麼以及為什麼。

Okay.

好的。

And then I just wanted to ask a little bit about your assumptions for the market for this year.

然後我想問您對今年市場的假設。

It sounded like you're assuming flat PC growth outside of tablets, and given that PCs have been declining, I was just curious why you think that improves this year.

聽起來您似乎假設平板電腦以外的個人電腦成長平穩，考慮到個人電腦一直在下降，我只是很好奇為什麼您認為今年的情況會有所改善。

And then on the TV side, what are you seeing in the supply chain as we approach the World Cup, and is that historically the kind of event that has any impact on TV demand?

然後在電視方面，隨著世界盃的臨近，您在供應鏈中看到了什麼？從歷史上看，世界盃是否會對電視需求產生影響？

I will deal with the latter first.

我將首先處理後者。

So sporting events do provide some increase in the television markets.

因此，體育賽事確實為電視市場帶來了一些成長。

We have seen that historically with World Cups as well as summer Olympics.

我們在歷史上的世界盃和夏季奧運會上已經看到了這一點。

One issue that we see is often the impact on television consumption is higher but less than what investors want it to be.

我們看到的一個問題通常是對電視消費的影響較高，但低於投資者的預期。

We expect to see a similar phenomenon for the World Cup that occurs in the middle of this year.

我們預計今年年中的世界盃也會出現類似的現象。

I forgot your second question.

我忘了你的第二個問題。

PC demand.

個人電腦需求。

I don't have the PC demand with me, but we think tablets are providing I think most of the growth for this year, and that we've got -- I think that notebooks we have relatively flat.

我沒有個人電腦需求，但我們認為平板電腦正在提供今年的大部分成長，而且我們擁有的筆記型電腦相對持平。

Right.

正確的。

That was my question is that they've actually -- PCs have actually been declining, so just curious why you think they will be flat this year.

我的問題是，個人電腦實際上一直在下降，所以只是好奇為什麼你認為今年的電腦銷售會持平。

Is there something specific you're seeing or how high your confidence is on that forecast?

您是否看到了一些具體的情況，或者您對該預測的信心程度如何？

My confidence is medium about the IT, but I would hope you come to the IR day and you can talk to the guys running the business; they will explain why they came up with the number.

我對 IT 的信心為中等，但我希望您能參加 IR 日，並且可以與負責業務的人員交談；他們會解釋為什麼他們想出這個數字。

Okay.

好的。

Thanks very much.

非常感謝。

Next question comes from the line of Joseph Wolf from Barclays.

下一個問題來自巴克萊銀行的約瑟夫·沃爾夫。

Please go ahead.

請繼續。

Hi.

你好。

Thank you.

謝謝。

Just two questions.

只有兩個問題。

One on the glass inventory.

一份關於玻璃庫存。

You mentioned it's 17 weeks.

你提到這是17週。

I'm thinking that that's stable.

我認為這很穩定。

Is that the right number given the high number of different panel sizes, screen sizes across the different devices, or do you think that that moves seasonally like it did in 2013?

考慮到不同面板尺寸、不同設備的螢幕尺寸數量眾多，這個數字是否正確？還是您認為這個數字會像 2013 年那樣季節性變化？

If you go back a couple years, we would have said 17 weeks was high.

如果你回到幾年前，我們會說 17 週已經很高了。

But we believe the comment that you're making about the number of additional panel sizes has led people to carry more.

但我們相信您對額外面板尺寸數量的評論導致人們攜帶更多面板。

So what we've developed is over the past year, we think 17 is acceptable.

所以我們過去一年的發展，我們認為17是可以接受的。

In terms of the cycle of the weeks, remember the weeks the way we do it is forward-looking, always.

就週的周期而言，請記住我們每週的做法始終是前瞻性的。

So as we get to square footage of glass and look at quarter two at the end of quarter one, the number will climb simply because Q2 goes lower.

因此，當我們了解玻璃的平方英尺並查看第一季末的第二季度時，這個數字將會攀升，僅僅是因為第二季的下降。

You always have to look at two things in combination, the absolute inventory and the weeks based on the forward-looking.

你總是必須結合考慮兩件事：絕對庫存和基於前瞻性的周數。

But we feel pretty good about the inventory levels right now.

但我們目前對庫存水準感覺良好。

Tom, we have time for one more short question.

湯姆，我們還有時間再問一個簡短的問題。

Our final question today will come from the line of Rod Hall with JPMorgan.

我們今天的最後一個問題將來自羅德霍爾 (Rod Hall) 與摩根大通 (JPMorgan) 的對話。

Please go ahead.

請繼續。

Yes, hi, guys.

是的，嗨，夥計們。

Okay, I will try to make it short then.

好的，那我會盡量長話短說。

I guess I'm going to have to go back to the pricing commentary, Jim.

我想我得回到定價評論了，吉姆。

I just -- it sounds like you're saying that the competitors converge toward some lower price point that was in the market, at least that's what you're thinking.

我只是——聽起來你是在說競爭對手正在向市場上某個較低的價格點靠攏，至少你是這麼想的。

What I don't understand is, and usually you have a good reason for saying things like this, why you have confidence that after Q1, that will rebound.

我不明白的是，通常你有充分的理由這麼說，為什麼你有信心在第一季之後，經濟將會反彈。

Is there some dynamic we should be thinking about that would cause that pricing to come back in Q2?

我們是否應該考慮一些動態，導致定價在第二季回歸？

And then just a really quick second question, the Chinese fusion agreement, did you manage to stop them from using fusion technology all together?

然後是一個非常快速的第二個問題，中國的聚變協議，你是否設法阻止他們一起使用聚變技術？

Or can you just, beyond the money, can you just tell us what else transpired in that deal that might be helpful to you?

或者，除了金錢之外，您能否告訴我們該交易中還發生了哪些可能對您有幫助的事情？

Thanks.

謝謝。

On the latter, there are limitations on their ability to use the fusion technology.

對於後者，他們使用融合技術的能力受到限制。

That's all I will disclose at this point in time.

這就是我現在要透露的全部內容。

On pricing, obviously this is a forecast, and it is our -- based on what we think happened and, therefore, we were right on why it happened, we think there would be no reason for it to repeat in quarter two.

在定價方面，顯然這是一個預測，這是我們的——基於我們認為發生的事情，因此，我們對它發生的原因是正確的，我們認為沒有理由在第二季度重複。

I can't guarantee that, Rod, but we believe what was happening with this compression and adjustment that had to be made by competitors among their customers ended up affecting us through this contractual arrangement.

我不能保證這一點，羅德，但我們相信，競爭對手在其客戶中進行的壓縮和調整最終會透過這種合約安排影響我們。

And we don't think that has to repeat.

我們認為這種情況不必重複。

That's why we're confident right now that Q2 will come back to more moderate price declines.

這就是為什麼我們現在有信心第二季的價格跌幅將更加溫和。

Okay.

好的。

Great.

偉大的。

Thanks a lot, Jim.

非常感謝，吉姆。

Thanks, Rod.

謝謝，羅德。

Okay.

好的。

So we have a couple IR announcements as our wrap-up.

我們發布了幾則 IR 公告作為總結。

As we mentioned several times today, we will be holding our annual Investor Day in New York City February 7 at the same location, Cipriani's, hopefully with no snow.

正如我們今天多次提到的，我們將於 2 月 7 日在紐約市同一地點 Cipriani's 舉辦年度投資者日活動，希望不會下雪。

We will have numerous hands-on demonstrations at our business exhibits, and as I mentioned earlier, we will be giving an overview of our growth expectations for 2014.

我們將在我們的商業展覽中進行大量的實踐演示，正如我之前提到的，我們將概述 2014 年的成長預期。

So in addition to myself, we will have our Chief Executive Officer, Wendell Weeks; our new Chief Technology Officer and three business group leaders will be speaking to you about their plans as we continue to march-up of our earnings growth.

因此，除了我本人之外，我們還有執行長 Wendell Weeks；隨著我們繼續加快獲利成長，我們的新任首席技術長和三位業務集團領導將向您講述他們的計劃。

It's going to be very informative, hands-on and, I hope you will consider attending in person.

它將提供非常豐富的資訊和實踐經驗，我希望您能考慮親自參加。

To summarize the results of the call, we finished 2013 with a very solid quarter, achieved our goal of forming bottom march-up with year-over-year earnings growth in every quarter this past year.

總結電話會議的結果，我們以非常穩健的季度結束了 2013 年，實現了去年每個季度盈利同比增長、形成底部上升的目標。

We completed a major acquisition that we think brings the Company and our shareholders numerous benefits including media accretion and additional cash flows.

我們完成了一項重大收購，我們認為這會為公司和股東帶來眾多好處，包括媒體成長和額外現金流。

We continue to improve manufacturing efficiencies and control operating costs in most of our businesses, and ultimately, we grew earnings per share 16% year-over-year in 2013.

我們繼續提高大多數業務的製造效率並控制營運成本，最終，我們 2013 年的每股收益年增了 16%。

Finally, we returned cash to shareholders with our share buyback program and 11% dividend increase.

最後，我們透過股票回購計畫和 11% 的股利增加向股東返還現金。

We're coming into 2014 with expectations for continued growth in sales and even more in earnings.

進入 2014 年，我們預計銷售額將持續成長，獲利將進一步成長。

We intend to maintain stable display earnings with moderate price declines, very diligent management of our glass capacity and continued cost reductions.

我們打算透過適度的價格下降、對玻璃產能的嚴格管理以及持續的成本削減來保持穩定的顯示器效益。

And the prospects for growth in Optical Communications, Specialty Materials, Environmental Life Sciences are strong, so stay tuned for more details at our IR meeting next week.

光通訊、特殊材料、環境生命科學的成長前景十分強勁，因此請繼續關注我們下週的 IR 會議上的更多詳細資訊。

Ann.

安.

Thank you, Jim, and thank you all for joining us today.

謝謝吉姆，也謝謝大家今天加入我們。

A playback of this call is available beginning at 11 AM Eastern time today and will run until 5 PM Eastern on Tuesday, February 11.

該電話會議的回放從東部時間今天上午 11 點開始，一直持續到東部時間 2 月 11 日星期二下午 5 點。

To listen, dial 800-475-6701; the access code is 314670.

如需收聽，請撥打 800-475-6701；訪問代碼是314670。

The audio cast of course is available on our website during that time.

在此期間，我們的網站上當然可以提供音訊廣播。

Operator, that concludes our call.

接線員，我們的通話結束了。

Please disconnect all lines.

請斷開所有線路。

Ladies and gentlemen, that does conclude our conference for today.

女士們、先生們，今天的會議到此結束。

Thank you for your participation and using the AT&T executive teleconference.

感謝您參與並使用 AT&T 高階主管電話會議。

You may now disconnect.

您現在可以斷開連線。