康寧 (GLW) 2014 Q2 法說會逐字稿

Ladies and gentlemen, good morning. Thank you for standing by, as today's conference assembled. Welcome to the Corning Incorporated Quarter Two 2014 Earnings Results. At this time, all lines are in a listen-only mode. Later there will be an opportunity for your questions, and instructions will be given at that time.

各位女士、各位先生，早安。感謝各位在今日會議開始前耐心等候。歡迎參加康寧公司（Corning Incorporated）2014 年第二季財報結果電話會議。此刻所有線路均為只聽模式。稍後將提供提問時間，屆時會說明相關指示。

(Operator Instructions)

（接線員指示）

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

提醒各位，今日會議將進行錄音。

At this time, I'd like to turn the conference over to our host, Division Vice President, Investor Relations, Ms. Ann Nicholson.

現在我想把會議交給我們的主持人——事業部副總裁、投資人關係主管 Ann Nicholson 女士。

Please go ahead.

請開始。

Thank you, Tom.

謝謝你，Tom。

Good morning. Welcome to Corning's Second-Quarter conference call. With me today is Jim Flaws, Vice Chairman and Chief Financial Officer.

各位早安。歡迎參加康寧第二季電話會議。今天與我一同出席的是副董事長暨財務長 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. 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.

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）所界定的範圍。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 SEC 提交的報告中詳述。

You should also note that this presentation contains a number of non-GAAP measures. A reconciliation can be found on our website.

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'll turn the call over to Jim.

現在我把電話交給 Jim。

Thanks, Ann.

謝謝你，Ann。

Good morning, everyone. We're at the halfway mark for the year. And as I think about where we've been and what lies ahead of us, I'll note that we've accomplished a great deal already and are poised to deliver a full year of strong earnings growth. I'm delighted with our core performance results and the momentum we've created entering the second half.

各位早安。我們已走到今年的中點。回顧我們走過的路並展望未來，我要指出，我們已經完成了許多工作，並且蓄勢待發，有望交出全年強勁的獲利成長。我對我們核心營運表現的成果以及進入下半年所建立的動能感到非常振奮。

We told you in February that we had four key items in our formula for success in 2014. They were: number one, to continue the positive momentum in Display Technologies; number two, to integrate Corning Precision Materials and execute on our synergy plan; number three, to grow sales and profits of our other segments; and number four, to return cash to shareholders.

我們在二月曾告訴各位，2014 年我們成功方程式有四個關鍵項目。分別是：第一，延續顯示科技（Display Technologies）的正向動能；第二，整合康寧精密材料（Corning Precision Materials, CPM）並落實我們的協同效益計畫；第三，推動其他事業部的營收與獲利成長；第四，回饋現金給股東。

Reflecting on these now, we are mostly on track. Even where we are not, there are some improving trends. In Display, the end market of retail is on track; and we're seeing excellent volume and cost performance. We're recovering from the product issue that we had and, most importantly, pricing is moderating after the speed bump in Q1. Our CPM integration is going well, and we think the synergies will come earlier than our plan that we shared with you last October.

就目前來看，我們大致上都在軌道上。即使有些地方尚未完全達標，也出現了一些改善趨勢。在顯示事業方面，零售終端市場進展符合預期；我們也看到出色的出貨量與成本表現。我們正從先前的產品問題中恢復，更重要的是，在第一季的短暫波動之後，價格下滑幅度正在趨緩。我們對 CPM 的整合進展順利，且我們認為協同效益將比去年十月與各位分享的計畫更早實現。

In our other segments, we are seeing excellent growth in Environmental and Optical Communications, actually stronger than our plan. Our only disappointment is the slower growth in the cover glass market. I'll speak in more detail on this in our outlook. Finally, we are executing on the cash-to-shareholder goal through our repurchase program.

在其他事業部方面，我們看到環境科技（Environmental）與光學通訊（Optical Communications）呈現優異成長，實際上比我們的計畫更強。唯一令人失望的是保護蓋玻璃（cover glass）市場成長較慢。我會在展望部分更詳細說明。最後，我們透過庫藏股回購計畫，持續執行「回饋現金給股東」的目標。

Now let's get to the second quarter results. In the second quarter, we had our seventh consecutive quarter of core earnings growth, with earnings per share up 16% versus last year. Also in the quarter, we attained more moderate price declines for LCD glass in the upcoming third quarter, actually returning to the rates we had experienced for most of 2013. We also grew the Company's core sales with Optical Communications Environmental exceeding expectations. We maintained strong control of operating expense, and we continued repurchasing shares, totaling approximately $200 million during the quarter.

現在讓我們進入第二季的業績結果。第二季我們達成核心盈餘連續第七季成長，每股盈餘較去年同期成長 16%。此外，本季我們也使即將到來的第三季 LCD 玻璃價格下滑幅度更為溫和，實際上回到 2013 年大部分時間所見的下滑速度。我們也推動公司核心營收成長，其中光學通訊與環境科技表現超出預期。我們持續嚴控營業費用，並持續回購股份，本季合計約 2 億美元。

Let's delve into the second-quarter details. As a reminder, we are providing core performance results in order to exclude non-performance-related items and increase the transparency of our operating results. Core financial measures are non-GAAP, and 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.

接下來我們深入說明第二季細節。提醒各位，我們提供核心績效結果，是為了排除與營運表現無關的項目，並提高營運成果的透明度。核心財務指標屬於非 GAAP 指標，而我們也持續揭露 GAAP 結果。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。

Second-quarter sales were $2.6 billion, up 28% versus last year, and a new record, driven largely by the consolidation of CPM sales. Gross margin was 45%, was up year over year and sequentially, but slightly lower than our original expectation of 46%. This was mainly due to lower Gorilla Glass sales versus our expectations.

第二季營收為 26 億美元，較去年同期成長 28%，並創下新高，主要受 CPM 營收併入合併報表所帶動。毛利率為 45%，較去年同期與前一季均上升，但略低於我們原先預期的 46%。主要原因是 Gorilla Glass 銷售低於我們的預期。

SG&A and R&D spending were higher year over year in absolute dollars, driven primarily by the consolidation of CPM, but lower as a percentage of sales. Gross equity earnings of $58 million were down 66% year over year, but that's primarily driven by eliminating the equity earnings of SCP following the acquisition. Dow Corning equity earnings were up 17% year over year, and I will have some more detail on that in a minute.

SG&A 與研發支出以金額計較去年同期增加，主要由於 CPM 併入合併報表所致，但占營收比重則下降。權益法投資收益總額為 5,800 萬美元，較去年同期下降 66%，主要是因收購完成後不再認列 SCP 的權益法收益。Dow Corning 的權益法收益較去年同期成長 17%，我稍後會再補充一些細節。

Our effective tax rate was 17%, lower than quarter one, driven by the mix of sales by country and their differing effective tax rates. Earnings per share where $0.37, up $0.05 over a year ago, and essentially in line with expectations. During the quarter, we completed the announced $1.25-billion accelerated stock repurchase, and also bought approximately $200 million of shares on the open market. We have approximately $400 million remaining on our current program and expect to continue share repurchases in Q3.

我們的有效稅率為 17%，低於第一季，主要受各國銷售組合及其不同有效稅率影響。每股盈餘為 0.37 美元，較一年前增加 0.05 美元，基本符合預期。本季我們完成先前宣布的 12.5 億美元加速股票回購（ASR），並且也在公開市場回購約 2 億美元股份。目前在既有回購計畫下尚餘約 4 億美元額度，並預期在第三季持續回購。

Now let's look at the detailed segment results, and I'll begin with Display. Display sales were $1.1 billion in Q2, a 62% increase versus last year, driven by the additional sales from our now consolidated operations in Korea, Corning Precision Materials. Q2 price declines were less than Q1, as we had expected.

現在我們來看各事業部的詳細結果，先從顯示事業開始。第二季顯示事業營收為 11 億美元，較去年同期成長 62%，主要受我們目前已合併的韓國營運——康寧精密材料（CPM）帶來的額外銷售所驅動。如我們所預期，第二季價格下滑幅度小於第一季。

The LCD glass market was up in the high single digits sequentially, exceeding our expectations for the quarter, driven by better expected sales for the World Cup. We believe this demand may have pulled in some television units from the back half of the year, so we have not made any changes to our TV unit sales forecast for the full year at this time. However, we are raising our TV screen size forecast.

LCD 玻璃市場較前一季成長高個位數百分比，超出我們對本季的預期，主要受惠於世界杯帶動、優於預期的銷售。我們認為這股需求可能將部分原本在下半年銷售的電視機提前拉貨，因此目前我們尚未調整全年電視出貨量預測。不過，我們正在上調電視螢幕尺寸的預測。

Our volume in the second quarter edged up into the low teens sequentially. Volume growth outpaced market growth, as we recovered share at the one customer in Korea. Recall our Q1 volume growth was softer than the market growth, driven mainly by the technical issue with our product at one customer in Korea. We have significantly improved performance in Q2, and have begun to recover share at this account. Additional share growth is expected at this account in Q3.

我們第二季出貨量較前一季小幅上升至低十位數百分比。出貨量成長超過市場成長，因為我們在韓國的一家客戶處收復了市占。回顧第一季，我們的出貨量成長弱於市場成長，主要是因為在韓國的一家客戶端，我們的產品出現技術問題。第二季我們的表現已顯著改善，並已開始在該客戶恢復市占。預期第三季在該客戶的市占將進一步提升。

We continue to expect our full-year volume growth to be in line with market growth, and our worldwide share to remain stable year over year. Gross equity earnings from the equity venture in Korea, SCG, were immaterial. Gross margins improved in Display, driven by the CPM consolidation. Net income was up 9% year over year, reflecting the impact of additional sales in earnings from CPM.

我們仍預期全年出貨量成長將與市場成長一致，且我們的全球市占率將較去年同期維持穩定。來自韓國權益合資企業 SCG 的權益法收益總額影響不大。受 CPM 併表帶動，顯示事業的毛利率有所改善。淨利較去年同期成長 9%，反映 CPM 額外銷售對收益的影響。

We believe the supply chain inventory is healthy. Q2 we saw supply chain inventory increase by approximately one week sequentially, as the industry begins the pipeline build for second-half sales. On a forward-looking basis, weeks of inventory exiting Q2 of 2014 are at the same level as Q2 of 2013. Additionally, panel prices continue to be stable or increasing, a strong indicator that supply chain inventory is healthy. As we exit Q3, we would expect inventory to decline to less than 17 weeks on a forward-looking basis.

我們認為供應鏈庫存狀況健康。第二季我們看到供應鏈庫存較前一季增加約一週，因產業開始為下半年銷售進行管線備貨。以前瞻基礎來看，2014 年第二季結束時的庫存週數與 2013 年第二季相同。此外，面板價格持續穩定或上升，這是供應鏈庫存健康的強力指標。隨著第三季結束，我們預期以前瞻基礎計算的庫存將下降至低於 17 週。

In our Optical Communications segment, Q2 sales were $686 million, up 14% versus last year and better than we had expected. Sales for fiber and home solutions were stronger than expected in North America and EMEA. All businesses and regions contributed to year-over-year sequential growth, with the exception of fiber sales in China. Net income was up 5% versus last year, lower than the sales growth, primarily due to year-over-year price declines.

在光學通訊事業部，第二季銷售額為 6.86 億美元，較去年同期成長 14%，且優於我們的預期。光纖與家用解決方案在北美與 EMEA 的銷售強於預期。除中國的光纖銷售外，所有業務與地區皆對年增與季增有所貢獻。淨利較去年同期成長 5%，低於銷售成長，主要因價格較去年同期下滑。

In Environmental, Q2 sales were $285 million, up 25% versus last year and better than expected. Total diesel sales were up 38% as new regulations in China and Europe, as well as strong truck builds in North America, drove strong heavy-duty diesel sales. Light-duty diesel and auto sales were up also versus last year. Net income in this segment was up 42%. Strong volumes in auto and heavy-duty diesel, as well as manufacturing efficiencies, led to record profits in Environmental.

在環境事業部，第二季銷售額為 2.85 億美元，較去年同期成長 25%，且優於預期。受中國與歐洲新法規，以及北美卡車強勁增產帶動，重型柴油相關銷售強勁，使柴油總銷售成長 38%。輕型柴油與汽車相關銷售亦較去年同期成長。該事業部淨利成長 42%。汽車與重型柴油的強勁出貨量，以及製造效率提升，帶動環境事業部創下獲利新高。

In Specialty Materials, sales for the quarter were up 14% sequentially but lower than our expectations entering the quarter. We believe our Gorilla Glass sales reflect what happened in the smartphone and tablet markets in the first half of the year. In Q2, we've seen evidence of disappointing sell-through, which we believe contributed to our weaker sales into the supply chain. In addition, we had a change in our expected ramp-up timing for some second-half model launches. We expect to recover some of those sales in Q3, and I will provide more detail in our outlook section.

在特殊材料事業部，本季銷售額較前一季成長 14%，但低於我們在季初的預期。我們認為 Gorilla Glass 的銷售反映了今年上半年智慧型手機與平板市場的情況。第二季我們看到終端銷售（sell-through）令人失望的跡象，我們認為這導致我們對供應鏈的銷售較弱。此外，我們對部分下半年機型上市的預期放量時點有所調整。我們預期第三季可回補其中部分銷售，我將在展望段落提供更多細節。

Net income in Q2 was up 38% sequentially, but down year over year 17%. The lower year-over-year sales price, which had occurred in Q1, plus the non-repeat of our internal inventory replenishment from quarter two of 2013, impacted the segment's profitability. Recall in the first half of last year, we replenished the inventory that been depleted in quarter four 2012, while this year our manufacturing volume is more closely aligned with the shipments in the quarter.

第二季淨利較前一季成長 38%，但較去年同期下滑 17%。去年同期較低的銷售價格（已在第一季發生），加上 2013 年第二季內部庫存回補未再重現，影響了該事業部的獲利能力。回顧去年上半年，我們回補了 2012 年第四季所消耗的庫存；而今年我們的製造量更貼近當季出貨量。

In Life Sciences, Q2 sales met our expectations for the quarter. They were up slightly, and profit was consistent with last year. Equity earnings for Dow Corning were $49 million including the earnings from Hemlock. Earnings were up 17% versus Q2 of 2013. This improvement is partially driven by the tax rate in the inclusion of Hemlock this year. If we had had Hemlock in last year, the year-over change in equity earnings would have been minor.

在生命科學事業部，第二季銷售符合我們對本季的預期。銷售小幅成長，獲利與去年一致。Dow Corning 的權益法收益為 4,900 萬美元，包含 Hemlock 的收益。收益較 2013 年第二季成長 17%。此改善部分來自今年納入 Hemlock 後的稅率影響。若去年也納入 Hemlock，權益法收益的年對年變動將不大。

Moving to the balance sheet, we ended the second quarter with $5.9 billion in cash and short-term investments. We had very strong operating cash flow in the quarter. Strong operating cash flow also resulted in strong free cash flow in the quarter of about $600 million. As a reminder, free cash flow is a non-GAAP measure. You can find reconciliation to GAAP on our website. We ended the quarter with a approximately $1.3 billion of cash in the United States.

接著看資產負債表，我們在第二季末持有 59 億美元的現金與短期投資。本季營運現金流非常強勁。強勁的營運現金流也帶來本季約 6 億美元的強勁自由現金流。提醒一下，自由現金流為非 GAAP 指標。您可在我們的網站上找到與 GAAP 的調節表。本季末我們在美國約持有 13 億美元現金。

Cap spending for the quarter was $232 million. We are revising our capital spending forecast down for 2014, from $1.5 billion to about $1.3 billion. The lower forecast is due to lower spending at both CPM and in our staff groups.

本季資本支出為 2.32 億美元。我們下修 2014 年資本支出預測，從 15 億美元降至約 13 億美元。預測下調係因 CPM 與我們的支援部門（staff groups）支出均較低。

Turning to foreign-exchange exposures, we've taken some additional actions. First, given our increased exposure to the Korean won with the SCP acquisition, we entered into a series of zero-cost collars during the quarter to hedge against movements in the US dollar to won exchange rate for 2014 and 2015. We will now report the won at a constant rate of $1,100 in our core earnings, so investors can more clearly see our operational results. These costs did not have a material impact to our GAAP results for the quarter.

談到外匯曝險，我們採取了一些額外行動。首先，鑑於我們因收購 SCP 而增加對韓元的曝險，我們在本季簽訂一系列零成本區間（zero-cost collars），以對沖 2014 與 2015 年美元兌韓元匯率波動。我們現在將在核心盈餘中以 1 美元兌 1,100 韓元的固定匯率報告韓元，讓投資人能更清楚看見我們的營運成果。這些成本對本季 GAAP 結果沒有重大影響。

Second, during the second quarter of 2014, we entered into a series of additional hedges with no associated premium, which will partially hedge the impact of the Japanese yen translation on our projected 2015, 2016, and 2017 net income. The blended rate of these new average rate forward contracts is JPY99 per US dollar. We have not made any decisions yet on the core reporting rate for 2015 and beyond. We have some of 2015 hedged at JPY93, and now some at JPY99. We'll keep investors updated on our activities and thinking on foreign exchange as the year unfolds.

第二，於 2014 年第二季期間，我們簽訂一系列不需支付權利金的額外避險，將部分對沖日圓換算對我們預估 2015、2016 與 2017 年淨利的影響。這些新的平均匯率遠期合約之加權平均匯率為 1 美元兌 99 日圓。我們尚未就 2015 年及以後的核心報導匯率做出任何決定。我們已以 1 美元兌 93 日圓對沖了部分 2015 年曝險，現在又以 1 美元兌 99 日圓對沖了部分。隨著年度進展，我們將持續向投資人更新我們在外匯方面的作為與想法。

Now going to outlook, I'll start with Display. We have no changes to our expectations for LCD retail and glass markets for the year. To reiterate, we expect the retail market as measured in square feet of glass to be up mid- to high-single digits. We think LCD TV units will grow low- to mid-single digits, with area growth likely higher.

接著談展望，我先從顯示事業開始。我們對今年 LCD 零售與玻璃市場的預期沒有變化。再次強調，以玻璃平方英尺衡量的零售市場，我們預期將成長中至高個位數。我們認為 LCD 電視出貨台數將成長低至中個位數，而面積成長可能更高。

The trend of consumers buying larger televisions has continued. We expect average screen size to increased 3% through 2015, driven primarily by increased affordability. Moreover, we believe screen-size growth will be robust beyond 2015, driven by ultra-high-definition television penetration, which favors large-size televisions. In the current year, we've raised our screen-size forecast significantly in the above 30-inch group for televisions.

消費者購買更大尺寸電視的趨勢仍在延續。我們預期至 2015 年平均螢幕尺寸將增加 3%，主要由價格更可負擔所帶動。此外，我們認為 2015 年之後螢幕尺寸成長仍將強勁，因超高畫質電視的滲透率提升，而其更偏好大尺寸電視。在今年，我們已大幅上調 30 吋以上電視族群的螢幕尺寸預測。

As I said earlier, we continue to feel good about the glass market this year. Inventory levels appear healthy, and glass supply seems aligned with demand. We expect the LCD glass market be up low single digits in Q3 versus Q2. Corning's glass volume is expected to be up mid-single digits, driven by the continued share recovery of the one customer in Korea. Now, we expect LCD glass price declines in Q3 to further moderate and to be at the rates that we experience for most of 2013. We're delighted by this return to the moderate levels.

如我先前所說，我們今年對玻璃市場仍持正面看法。庫存水位看起來健康，玻璃供給似乎與需求相符。我們預期第三季 LCD 玻璃市場相較第二季將成長低個位數。Corning 的玻璃出貨量預期將成長中個位數，主要由韓國某一客戶持續回升的市占所帶動。此外，我們預期第三季 LCD 玻璃價格下跌幅度將進一步趨緩，並回到我們在 2013 年大部分時間所經歷的水準。我們對於回到這種溫和水準感到非常高興。

In the first quarter, we closed on the acquisition of SCP, now CPM, and began integration activities. These activities are proceeding very well. We realized about $15 million pre-tax in synergies during the second quarter, and are tracked for $30 million in the third quarter and $90 million in synergies for the full year. As promised, we are also updating our synergy forecast for the out years and now believe we can attain the $170 million in synergies in 2016 which had been in 2017, and ultimately attain a $210-million run rate in 2017.

在第一季，我們完成了對SCP（現為CPM）的收購交割，並開始整合工作。這些工作進展非常順利。我們在第二季實現了約1,500萬美元的稅前協同效益，並且第三季可追蹤到3,000萬美元、全年可達9,000萬美元的協同效益。如先前承諾，我們也更新了未來年度的協同效益預測；我們現在相信可在2016年達成1.7億美元的協同效益（原先預計在2017年），並最終在2017年達到2.1億美元的年化運行率。

Moving to Optical Communications, we expect Q3 sales to be up in the mid-single digits versus Q3 of 2013, driven by continued strong sales of fiber in the home and wireless. Given the strong start to the year, especially in Q2 and our current outlook, we now expect full-year sales to be up in the high-single digits, due to growth in fiber in the home, data centers, and wireless optical connectivity.

談到光學通訊，我們預期第三季銷售額相較2013年第三季將成長中個位數百分比，主要由光纖到戶與無線領域持續強勁的銷售所帶動。鑑於今年開局強勁，尤其是第二季，以及我們目前的展望，我們現在預期全年銷售額將成長高個位數百分比，成長動能來自光纖到戶、資料中心與無線光學連接。

Environmental, we expect Q3 sales to be up 20% to 25% year over year, driven by the continued stronger heavy-duty sales in the United States, and due to new regulations in Europe and China.

在環境科技事業方面，我們預期第三季銷售額年增20%至25%，主要受美國重型車用需求持續走強，以及歐洲與中國新法規的推動。

Turning to Specialty Materials, we expect segment sales to be up about 10% versus the second quarter, driven mainly by higher Gorilla Glass volume. We expect an increase in Gorilla Glass volumes driven by new model launches, leading to sequential sales and gross margin growth.

轉到特殊材料事業，我們預期該部門銷售額較第二季成長約10%，主要由Gorilla Glass出貨量增加所帶動。我們預期因新機型上市帶動Gorilla Glass出貨量上升，進而推動銷售額與毛利率的季增。

We are making some significant reductions to our forecast of the covered glass markets for the year. These changes are most significant in the tablet area and on touch notebooks. The touch-on notebook market is not developing at the pace we expected, and our share remains similar to last year.

我們正在大幅下修今年覆蓋玻璃市場的預測。這些調整在平板領域以及觸控筆電方面最為顯著。觸控筆電市場的發展速度不如我們預期，而我們的市占率與去年相近。

The change to our outlook for tablets is having the largest impact on our forecast. We now estimate the overall media tablet market only growing approximately 8% to 10%, nowhere near the pace we had expected entering 2014. And this growth is occurring only in unbranded media tablets. We have not lost any share with branded media tablets; but because our share of unbranded tablets is lower, our overall share will slip slightly this year compared to last.

我們對平板的展望調整，對我們的預測影響最大。我們現在估計整體媒體平板市場僅成長約8%至10%，遠低於我們在2014年初所預期的速度。而且這些成長僅發生在非品牌媒體平板上。我們在品牌媒體平板並未流失任何市占；但由於我們在非品牌平板的市占較低，因此今年整體市占將較去年略為下滑。

We have not made any significant change to our smartphone forecast at this time, but the second-half ramp of new models is important to us. Of course, one reminder, smartphones are much smaller than tablets; so the square-foot impact of a phone is much smaller. Again, our share forecast in phones remains similar to our original expectations.

目前我們尚未對智慧型手機的預測做出任何重大調整，但下半年新機型的放量對我們很重要。當然提醒一下，智慧型手機比平板小得多，因此單支手機的平方英尺影響也小得多。同樣地，我們對手機的市占預測仍與原先預期相近。

Overall, we now expect the covered glass market in volume to grow 14%. At a supply-chain consumption level, we should be up 10%. We expect our shipment level volume to grow 20% year over year, due to the impact of the inventory correction last year. Overall, the 20% growth is down from our original expectations for the year and is a disappointment. In Life Sciences, we expect sales to be up slightly from last year's third quarter.

整體而言，我們現在預期覆蓋玻璃市場的出貨量將成長14%。以供應鏈消耗量的層級來看，我們應該成長10%。由於去年庫存修正的影響，我們預期自身出貨量將年增20%。整體而言，20%的成長低於我們年初的預期，令人失望。在生命科學事業方面，我們預期銷售額將較去年第三季小幅成長。

Continuing on with the rest of our third-quarter forecast, we expect third-quarter equity earnings from Dow Corning to be approximately $40 million to $45 million, down slightly versus Q2, driven by the return to a normal tax rate. We expect core equity earnings for Dow Corning to be approximately $225 million for the full year, driven by the single-digit silicone sales growth, proved margins in silicones, and 20% sales growth at Hemlock. As a reminder, we expect customers to meet their polysilicon obligations from the contracts in Q4, which will drive equity earnings up over Q3.

接著談第三季其餘預測，我們預期第三季來自Dow Corning的權益法收益約為4,000萬至4,500萬美元，較第二季略降，主要因稅率回到正常水準。我們預期Dow Corning全年核心權益法收益約為2.25億美元，主要由矽膠銷售個位數成長、矽膠業務毛利率改善，以及Hemlock銷售成長20%所帶動。提醒一下，我們預期客戶將在第四季履行合約中的多晶矽義務，這將使權益法收益較第三季上升。

Our total equity earnings for Q3 are expected to be $45 million to $50 million. We expect gross margin to be 46%, driven by Display and Gorilla Glass. Display's gross margin accrues versus last year due to the consolidation of CPM. SG&A and RD&E spending should be about 13% and 8% of sales, respectively, consistent with Q2.

我們預期第三季總權益法收益為4,500萬至5,000萬美元。我們預期毛利率為46%，主要由顯示科技與Gorilla Glass帶動。顯示科技的毛利率相較去年有所提升，原因是合併CPM。SG&A與RD&E支出分別約占銷售額的13%與8%，與第二季一致。

Now finally, for your modeling purposes, I'd like to focus on three items to make sure you have our latest thinking. These three are Other Income and Other Expense, our tax rate, and the number of shares outstanding.

最後，為了方便各位建模，我想聚焦三個項目，確保你們掌握我們最新的想法。這三項是：其他收入與其他費用、我們的稅率，以及流通在外股數。

First, our Other Income/Other Expense line in the P&L has several moving parts. So I thought for your modeling purposes I would run through this line item.

首先，損益表中的「其他收入／其他費用」科目包含數個變動因素。因此我想就建模的角度，帶各位快速說明這個科目。

Investors should recall that we no longer have the royalty income from SCP following its consolidation. Expenses in Other Income/Other Expense are very steady. The main component is interest expense, which runs approximately $30 million per quarter. Miscellaneous other items are also smaller and run approximately a $20-million quarterly expense.

投資人應記得，SCP在併入合併報表後，我們不再有來自SCP的權利金收入。「其他收入／其他費用」中的費用相當穩定。主要組成是利息費用，每季約3,000萬美元。其他雜項也較小，每季約2,000萬美元的費用。

Unfortunately, interest income on our cash is pretty small with the low interest rates. As a reminder, we invest our cash very short term. So for Q3, we expect Other Income/Other Expense to be a net expense of $45 million to $50 million. We occasionally get some positives in this area that we will mention -- for example, Intellectual Property settlements.

不幸的是，在低利率環境下，我們現金的利息收入相當有限。提醒一下，我們的現金投資期限非常短。因此第三季我們預期「其他收入／其他費用」淨額將為4,500萬至5,000萬美元的費用。我們偶爾也會在這一項看到一些正面因素並會提及——例如智慧財產權和解。

Second, our effective tax rate for 2014 overall is expected to be approximately 19%. The projected rate is higher than 2013, driven by the addition of CPM's income, which is taxed at the Korean tax rate at 24%.

第二，2014年整體有效稅率預期約為19%。該預估稅率高於2013年，主要因新增CPM的所得，而其適用韓國24%的稅率。

Finally, I know our share count has confused some investors with the full impact of the Samsung-owned convertible preferred shares on our fully diluted share count. Please remember that Q2 saw the full impact of the security. Q1 did not have the full impact.

最後，我知道由於三星持有的可轉換特別股對完全稀釋後股數的完整影響，讓部分投資人對我們的股數計算感到困惑。請記得第二季已反映該證券的完整影響。第一季則未反映完整影響。

Also, please remember that our fully-diluted earnings per share are done on an average basis for the quarter. Our quarter fully-diluted share count for Q2 was 1.43 billion. Our current forecast for the average fully diluted share count for Q3 is just under 1.42 billion. Obviously, depending on the stock price and our Q3 purchasing activities, the number may vary slightly.

另外也請記得，我們的完全稀釋每股盈餘是以該季平均股數計算。第二季的季度平均完全稀釋股數為14.3億股。我們目前對第三季平均完全稀釋股數的預測略低於14.2億股。顯然，視股價以及我們第三季的回購活動而定，該數字可能會略有變動。

That concludes my opening comments.

以上是我開場的說明。

Ann?

Ann？

Thanks, Jim.

謝謝，Jim。

Okay, Tom, we'll now open the lines for questions.

好的，Tom，我們現在開放提問。

(Operator Instructions)

（接線員指示）

Rod Hall, CIP Morning.

Rod Hall，CIP Morning。

Also representing JPMorgan, (laughter)

同時也代表摩根大通，（笑聲）

I'm glad you didn't change jobs.

很高興你沒有換工作。

No. We haven't changed the firm name, either. I had two quick questions for you, Jim. One, I wondered -- it sounds like the Gorilla, the weaker Gorilla guidance really all comes down to tablet demand, and not really smartphones. I just wanted to make sure that I got you to comment on color on alternative materials that have been discussed for smartphones, and whether there's any impact at all from that, that you see in Q3 and beyond, at least this year, anyway.

沒有。我們也沒有更改公司名稱。Jim，我有兩個簡短問題。第一，我想確認一下——聽起來Gorilla Glass較弱的指引主要都歸因於平板需求，而不是智慧型手機。我想請你談談先前市場討論過的智慧型手機替代材料，看看你是否認為這對第三季以及之後（至少今年）會有任何影響。

I also wanted to -- we were surprised that Display guidance was a little bit weaker. We thought that 4-K demand probably would start to pick up in the back end of year, so I'd be curious to hear your commentary around 4-K demand, and how you see that playing out this year. Are you still as optimistic about it as maybe you were at the beginning of the year? Thanks.

我也想提一下——我們對於 Display 的指引略微偏弱感到意外。我們原本以為 4K 需求可能會在年底開始回升，所以我想聽聽您對 4K 需求的看法，以及您認為今年會如何發展。您是否仍像年初那樣樂觀？謝謝。

On Display, I'm disappointed that you're disappointed, because Display is doing fine. Just a reminder, Q2 was stronger, so it makes the sequential not look as big going into Q3. But we think the Display market is behaving nicely and in line with our general expectations.

關於 Display，我對你感到失望這件事感到失望，因為 Display 表現得很好。提醒一下，第二季比較強，所以進入第三季時，季對季的增幅看起來就沒那麼大。但我們認為 Display 市場運作良好，符合我們整體的預期。

Relative to the 4-K televisions, we never expected very much of that this year. We just don't think the price points are at the level. We could be surprised, obviously, with the holiday season. Maybe some people will order more than we're expecting. But we really think 4-K or ultra-high def is really a 2015 to 2016 phenomenon. But we feel very good about the Display market, the television market. World Cup was very good. We fell overall very good about the market.

至於 4K 電視，我們今年從來就沒有預期會有很大的量。我們只是認為目前的價格帶還不到位。當然，假期旺季我們也可能會感到意外。也許有些客戶的下單量會超出我們的預期。但我們真的認為 4K 或超高解析度會是 2015 到 2016 年的現象。不過我們對 Display 市場、電視市場的看法非常正面。世界盃帶動效果很好。我們整體對市場感覺非常好。

On Gorilla, you are correct. If you look at our expectations in our forecast by type of product, it is tablets that is the big change statement. We just got that really wrong about what was happening in the tablet market, and we have adjusted down our forecast for that dramatically compared to our original expectations. That is overwhelming the impact in the reduction of what we expected for growth for Gorilla this year.

關於 Gorilla，你說得沒錯。如果你看我們依產品類別所做的預測，平板電腦是變動最大的項目。我們對平板市場正在發生的事情判斷得很不準，因此相較於原先的預期，我們已大幅下修該部分的預測。這也壓過了我們今年原先預期 Gorilla 成長所帶來的影響，成為下修的主要原因。

In terms of smartphones, I won't comment on specific customers and materials, but we continue to believe that Gorilla is going to be the material of choice for branded smartphones. I remind you that we are launching Gorilla 4 this year. We have already won models with that product.

至於智慧型手機，我不評論特定客戶與材料，但我們仍相信 Gorilla 會是品牌智慧型手機的首選材料。也提醒各位，我們今年將推出 Gorilla 4。我們已經在一些機種上拿下採用該產品的案子。

Okay. Jim, can I have one follow-up, which is on the yen hedge. I wonder if you could -- you made some further commentary there. Can you give us any -- I'm not sure I caught what you're thinking we should therefore be modeling in terms of a hedge rate. I know that continues to come up every quarter, and you've been deferring on what the average hedge rate ought to look like in 2015. Can you clarify your commentary around that, and help us understand if you were us, what would you be modeling there?

好的。Jim，我可以再追問一題關於日圓避險嗎？我想請教——你剛才又補充了一些說明。你能否提供一些資訊——我不確定我是否聽清楚你認為我們在避險匯率上應該如何建模。我知道這每一季都會被問到，而你一直沒有明確說 2015 年平均避險匯率應該長什麼樣子。你能釐清一下你剛才的說法，並幫助我們理解：如果你是我們，你會怎麼建模？

For this year we're not going to change the rate of 2014. What we've had, you should continue to model that. I think to help investors right now I would model next year at the same rate, and then most likely at the end of the third quarter we'll give you the rate for next year.

今年我們不會改變 2014 年的匯率。我們目前採用的，你們就繼續用那個來建模。我想為了幫助投資人，目前我會把明年也先用同樣的匯率來建模，然後很可能在第三季末我們會提供明年的匯率。

Our reported results next year we will restate 2014 to whatever the new rate is. Obviously, we are not hiding from investors the fact that the yen going forward is lower, and we've given you the amount of money that that net income is. But I would continue to model at the JPY93 rate for the remainder of this year. To help investors, so you can understand the volume growth and other things, I would use JPY93 right now for 2015. Then when we announce our Q3 results we're going to give you a rate for the next year.

我們明年的對外報告結果，會把 2014 年依新的匯率重述。顯然，我們並沒有對投資人隱瞞未來日圓走低的事實，我們也已提供其對淨利的金額影響。但今年剩餘期間，我會繼續用 JPY93 的匯率來建模。為了幫助投資人理解出貨量成長與其他因素，我目前也會用 JPY93 來建模 2015 年。然後在我們公布第三季結果時，我們會提供下一年的匯率。

Okay. Thanks a lot, Jim.

好的。非常感謝，Jim。

Mark Sue, RBC Capital Markets.

RBC Capital Markets 的 Mark Sue。

Yes, thank you. This is [Amit Druble] calling on behalf of Mark Sue. How should we think about the annual pricing contacts for LCD glass? Longer term, I believe they are set to be removed in 3Q. Any preliminary thoughts there would be helpful? You're lowering your CapEx expectations for the year. Just going forward, how should we think about CapEx as a metric, maybe a percentage of sales or something?

是的，謝謝。我是 [Amit Druble]，代表 Mark Sue 來電。我們應該如何看待 LCD 玻璃的年度定價合約？長期來看，我相信它們預計會在第三季被取消。若能提供任何初步看法會很有幫助。你們下調了今年的資本支出（CapEx）預期。往後我們應該如何看待 CapEx 這個指標，例如占營收比重之類？

On the latter, on CapEx we don't think about it as a percentage of sales because the Company has a level of maintenance, which probably is around $800 million. The rest is for expansion, and that can vary depending on the pace of projects. We haven't updated our outlook for it 2015 on CapEx yet. I'll do that in the quarter three call. But I would not expect the fact we lowered it this year means that we are pushing projects to next year.

先回答後者，關於 CapEx，我們不會把它當作營收百分比來看，因為公司有一個維持營運所需的水準，大概在 8 億美元左右。其餘則用於擴產，而這會隨專案推進速度而變動。我們尚未更新 2015 年的 CapEx 展望。我會在第三季電話會議時更新。但我不會因為我們今年下調了 CapEx，就預期我們是在把專案延後到明年。

Relative to the pricing contracts, the contracts remain in place. Many of them have automatic renewals unless somebody chooses to exit. We have contracts that go into next year already. We think that they're continuing to do what we expected, and think our customers are quite pleased with them.

至於定價合約，合約仍然有效。其中許多合約除非有人選擇退出，否則會自動續約。我們已經有延續到明年的合約。我們認為它們持續如我們所預期地運作，也認為客戶對此相當滿意。

Thank you, and good luck, folks.

謝謝，祝各位好運。

Thank you.

謝謝。

Wamsi Mohan, Bank of America Merrill Lynch.

美國銀行美林的 Wamsi Mohan。

Yes, thank you. Jim, on the Gorilla could you just clarify. In the press release you note as one of the reasons for the weaker 2Q is lower-than-expected sales for planned new models. Is that impact also related primarily to tablets from a dollar basis, or is there some smartphone also in there?

是的，謝謝。Jim，關於 Gorilla 你能否再釐清一下。在新聞稿中你提到第二季較弱的原因之一，是原先規劃的新機種銷售低於預期。以金額來看，這個影響主要也與平板有關，還是其中也包含一些智慧型手機？

That's primarily smartphones and new models.

那主要是智慧型手機和新機種。

Okay, thank you. Your gross margin of 45% was slightly below your expectations. Can you reconcile that with the statement that the synergies are actually coming in earlier than planned? Then can you talk about what's driving the higher synergies in the outer years for CPM? Thanks.

好的，謝謝。你們 45% 的毛利率略低於你們的預期。你能否把這點與「協同效益其實比原計畫更早實現」的說法對照解釋一下？另外，你能談談是什麼驅動 CPM 在較後幾年出現更高的協同效益嗎？謝謝。

The gross margin impact versus our original expectations was due to the shortfall in Gorilla sales. As you may recall, Gorilla glass itself, not parts, is the highest gross margin product the Company has. That's why we reduced our expectation. Display is doing fine and gross margin improved quarter two over record one.

毛利率相較於我們原先預期的差異，主要是因為 Gorilla 銷售不如預期。如你可能記得，Gorilla 玻璃本身（不是零組件）是公司毛利率最高的產品。這也是我們下修預期的原因。Display 表現良好，第二季毛利率也較第一季的紀錄水準有所改善。

I would say that the primary reason that the synergies are coming in faster is we're having an incredibly effective integration. The Management of CPM has embraced working with our Display team, led by Jim Clappin. We are delighted with the progress we've made. We are finding more opportunities.

我會說協同效益更快實現的主要原因，是我們的整合非常有效率。CPM 的管理團隊已全力投入與我們由 Jim Clappin 領導的 Display 團隊合作。我們對目前取得的進展非常滿意。我們也正在找到更多機會。

I think the biggest thing we are finding is we can move faster than we originally thought. We are delighted with the pace of integration. You're always a little apprehensive when you do something of this size, but it's going terrific and I think our team, both our CPM employees and our Display employees, are doing a great job.

我認為我們目前發現最重要的一點是，我們能夠比原先想像的更快推進。我們對整合的速度感到非常滿意。當你做這種規模的事情時，總是會有點忐忑，但目前進展非常順利；我認為我們的團隊——無論是我們的 CPM 員工還是我們的 Display 員工——都做得非常出色。

Thanks, Jim. One final clarification on the Gorilla. When you mention the shortfall related to smartphones and new products, is that timing-driven for you, or is it demand-driven? Is it broad-based or fairly narrow in terms of customer scope? Thank you.

謝謝你，Jim。最後再釐清一下 Gorilla 的部分。當你提到與智慧型手機和新產品相關的缺口時，對你而言這是由時程所驅動，還是由需求所驅動？就客戶範圍而言，是廣泛性的還是相對狹窄？謝謝。

I won't comment on customer scope. We think it's timing-based. It's always been difficult for us when people have new models to know exactly when they're going to be pulling. The difficulty for us is because of the length of the supply chain. We generally know the models and we have a forecast, but exactly how the supply chain pulls, it's very difficult for us to forecast.

我不會評論客戶範圍。我們認為這是時程因素。對我們來說，當客戶推出新機型時，要精準掌握他們何時會開始拉貨一直都很困難。我們的困難在於供應鏈很長。我們通常知道機型，也有預測，但供應鏈實際拉貨的節奏究竟如何，對我們而言非常難以預測。

Thank you, Jim.

謝謝你，Jim。

Amitabh Passi, UBS.

UBS 的 Amitabh Passi。

Hi. Good morning, everybody. Jim, I was wondering on the Display gross margin improvement from 1Q to Q2, can you give us some sense of the magnitude? Was it a couple hundred basis points, or greater or lower?

嗨。各位早安。Jim，我想請教 Display 毛利率從第一季到第二季的改善，你能否給我們一些幅度上的概念？是提升了幾百個基點，還是更高或更低？

I'll have to think, I don't have every number memorized. It was, I think, about 1.5 points.

我得想一下，我沒有把每個數字都背起來。我想大約是 1.5 個百分點。

That's helpful, thank you. Given the fact that you're seeing some recovering Gorilla glass sales going to the calendar 3Q, should we expect Company gross margin then to trend maybe closer back to the 46% you had expected in 2Q, or any help in terms of thinking about GM?

這很有幫助，謝謝。考量到你們看到部分回升的 Gorilla Glass 銷售會落在曆年第三季，我們是否應該預期公司整體毛利率會更接近你們原先在第二季預期的 46%，或是你能否提供一些思考毛利率的方向？

Yes, that is our expectation, 46%.

是的，那就是我們的預期，46%。

Okay, got it. My final question for you is just any help on the telecom strength. You cited fiber-to-the-home and North America and Europe. Is this tier one? Is it broader-based across tier twos, tier threes, as well? Any incremental insight there would be appreciated.

好的，了解。我最後一個問題是關於電信業務的強勁表現。你提到光纖到府，以及北美與歐洲。這是來自一線客戶嗎？還是也更廣泛地涵蓋二線、三線客戶？若能提供任何額外洞見將不勝感激。

It's very exciting for us. We were talking about it yesterday, that it's very broad-based. We are seeing good growth from our tier one customers, our very large customers in fact, even some who we thought had finished up more continuing to buy.

這對我們來說非常令人振奮。我們昨天還在談，這是非常廣泛的成長動能。我們看到一線客戶、也就是非常大的客戶帶來良好成長；事實上，甚至有一些我們原以為已經告一段落的客戶仍在持續採購。

Unfortunately, we can't name all our customers here, but it is very broad-based. I think it is really indicating what we basically said a decade ago, which was fiber-to-the-home is going to be very powerful force in the market. The fact that it's so broad-based, we are very excited by that. One last comment on that. I actually saw a little bit of an up-tick in the NBN project, which has undergone some changes with the change of government down there, but there was good demand on that in the most recent quarter.

很遺憾我們無法在這裡點名所有客戶，但確實是非常廣泛的。我認為這其實印證了我們大約十年前所說的：光纖到府將會是市場上一股非常強大的力量。由於它的動能如此廣泛，我們對此非常興奮。最後再補充一點。我其實看到 NBN 專案有些微回升；該專案因當地政府更迭而有一些變動，但在最近一季對此仍有不錯的需求。

Okay, thank you. I will step back in queue.

好的，謝謝。我回到隊列後面。

Simona Jankowski, Goldman Sachs.

Goldman Sachs 的 Simona Jankowski。

Hi, thank you. I just had a couple more follow-ups on Gorilla Glass. Just the first one was whether the -- it sounded like you expected some delay on the Gorilla 4. I just wanted to understand that was impacting your out-quarter guidance; and also that was still coming out in time to capture some of the major products that you are expecting to be in, in the second half?

嗨，謝謝。我還有幾個關於 Gorilla Glass 的追問。第一個是，聽起來你們原本預期 Gorilla 4 會有一些延後。我想了解這是否影響你們對後續季度的指引；另外，它是否仍會及時推出，以便切入你們預期在下半年會採用的幾個主要產品？

Our new version of Gorilla is not being delayed. We are in production. We are already shipping some product. We will in Q3. We have one model, so there is no delay relative to that.

我們新版 Gorilla 並沒有延後。我們已在量產。我們已經開始出貨一些產品。我們會在第三季出貨。我們有一個機型，因此相對於那個機型並沒有延遲。

Okay. Then it sounded like you did not change your expectations for Smartphone covered glass demand for the market as whole for this year, but you seem to be embedding some slow-down in product sales for the second half within the smartphone category. Is that a function of what you expect for your own products into some of your customers, or for some of your customers' sales?

好的。接著聽起來你們並未改變對今年整體市場智慧型手機覆蓋玻璃需求的預期，但你們似乎在智慧型手機類別中，對下半年產品銷售內含了一些放緩。這是基於你們預期自家產品對部分客戶的出貨，還是基於你們部分客戶自身的銷售表現？

We believe that smartphones had a little bit of an impact on our sales in our sales in Q2, because some customer sales were not as strong as what they had originally expected. But overall we're not changing the market for the year for smartphones.

我們認為智慧型手機在第二季對我們的銷售有一些影響，因為部分客戶的銷售不如他們原先預期強勁。但整體而言，我們並未改變今年智慧型手機市場的預期。

Then lastly you mentioned your expectations for higher TV sizes now than traditionally. Can you quantify that?

最後，你提到你們現在對電視尺寸的預期比傳統上更大。你能量化一下嗎？

I think you've see me carry around this special chart that I have, that I do for just myself on greater than 30 inches televisions. Versus where we came into the year we moved up just a little less than about a half an inch on that one; which delighted me, because I think that's the most important metric. We're actually quite surprised that smaller televisions for the first time weren't negative. They grew this past quarter. But as you know, the most important one for me is the average above 30.

我想你們看過我隨身帶著那張特別的圖表，那是我自己做的，專門看 30 吋以上的電視。相較於我們年初的預期，那個指標上升了不到大約半吋；這讓我很高興，因為我認為那是最重要的衡量指標。我們其實也相當驚訝，小尺寸電視第一次沒有呈現負成長。它們在上一季成長了。但如你所知，對我而言最重要的是 30 吋以上的平均值。

Okay, thank you.

好的，謝謝。

Mehdi Hosseini, SIG

SIG 的 Mehdi Hosseini

Jim, sorry to -- going back to Gorilla. I have a clarification. Do we have a sense of what Chinese handset OEMs are using for cover glass? Do you think your market share there is comparable to other regions?

Jim，不好意思——回到 Gorilla 的問題。我想釐清一下。我們是否掌握中國手機 OEM 在使用什麼樣的覆蓋玻璃？你認為你們在那裡的市占率與其他地區相當嗎？

We do have numbers there. Our market share is less, but our market share is improving there. First amount of alumina silicate glass, which is what we call the family of Gorilla glasses or specialty glasses is moving up as a percentage of overall phones there. Our share of alumina silica improved, also.

我們確實有那方面的數據。我們的市占率較低，但正在改善。首先，鋁矽酸鹽玻璃的用量——也就是我們所稱的 Gorilla 玻璃或特種玻璃的家族——在那裡占整體手機的比重正在上升。我們在鋁矽酸鹽玻璃中的市占率也有所提升。

Okay. It is well documented that the big Korean OEM did lose market share in Q2. Their results were disappointing. That to a large extent explains what happened to your Gorilla sales in Q2. Is that a fair assessment; Korea OEM versus Chinese OEMs?

好的。眾所周知，那家大型韓國 OEM 在第二季確實流失了市占率。他們的結果令人失望。這在很大程度上解釋了你們第二季 Gorilla 銷售的情況。這樣的判斷是否合理：韓國 OEM 相對於中國 OEM？

I will not comment on any specific customers.

我不會評論任何特定客戶。

Okay. Moving on to the operating margin. If you could just remind me again, did you say that Gorilla revenue will be up 20% in calendar year 2014, or did I misunderstand you?

好的。接著談營業利益率。你能再提醒我一次嗎：你是說 Gorilla 營收在曆年 2014 年將成長 20%，還是我誤解了你的意思？

Gorilla volume is up 20%.

Gorilla 的出貨量成長 20%。

Okay. If your operating margin was 17% for specialty material in 2013, how should we think about margin expansion here, with volume up 20%?

好的。如果你們 2013 年特殊材料的營業利益率是 17%，在出貨量成長 20% 的情況下，我們應該如何看待這裡的利潤率擴張？

You have price down significantly, which we talked about in Q1, so you're not going to see the operating margin expansion.

你們的價格大幅下滑，我們在第一季已談過，所以你不會看到營業利益率擴張。

Okay. Even with volume up 20%, are you suggesting margins will go flattish?

好的。即使出貨量成長 20%，你的意思是利潤率會大致持平嗎？

Yes

是的

Okay. Thank you.

好的。謝謝。

Joseph Wolf, Barclays.

Barclays 的 Joseph Wolf。

Thanks. First question is an elaboration on the last one. If you think about the lower end, and you've talked about your strategies there and telling us a little bit more about that, have your increased or sped up the time table for addressing some of that lower end of the cover glass market, given the market dynamics? Would that involve any new kinds of spending?

謝謝。第一個問題是延伸上一題。如果你們看低階市場，而且你們談過在那裡的策略並稍微多說了一些，鑑於市場動態，你們是否已提高或加快處理蓋板玻璃市場低階部分的時程？這會涉及任何新的支出類型嗎？

We really haven't made a final decision about, something we talked earlier in the year about whether we should have a different version of strength in glass, to go after the low end of the market in China. We still are evaluating that. We are spending quite a bit on new cover glass materials. But I don't think that would materially change our operating expense, if we chose to pursue that.

我們其實還沒有做出最終決定；我們今年稍早談過是否應該推出不同強度版本的玻璃，以切入中國的低階市場。我們仍在評估。我們在新的蓋板玻璃材料上投入相當多。但我不認為如果我們選擇推進，會對我們的營業費用造成實質性的改變。

Okay, then on the cash side. You've bought down the CapEx, and said it probably won't get added to next year. Could you talk about areas of focus, things that you've pulled back and where the reduction in your CapEx forecast comes from? If you circle back to the cash buy-back, can we look for an increase in that $400 million as we move to the second half of the year, given the strength of the free cash flow?

好的，那在現金方面。你們已下修資本支出，並表示明年可能不會再加回去。能否談談你們聚焦的領域、哪些項目已收縮，以及你們資本支出預估下修的來源？再回到現金回購，在自由現金流強勁的情況下，隨著進入下半年，我們是否可以期待這 4 億美元會增加？

The reduction in CapEx occurred because we, after going through all the plans at CPM, we determined that some of the projects did not need to proceed. Then the other area was in what we call loosely here our [STAS] capital, where we're going to spend a little bit less on that.

資本支出的下修是因為我們在 CPM 把所有計畫都檢視一遍後，判定有些專案不需要繼續推進。另外一個領域是我們在這裡較寬鬆地稱為 [STAS] 的資本支出，我們在那部分會少花一些。

Relative to share repurchases, there's no change in the share repurchase on our existing program. As I said, we have approximately $400 million. Our plan is to spend that money this year. Anything beyond that would take the Board of Directors putting together a new program. Historically, they wait until we finish a program before they start a new one.

至於庫藏股回購，我們既有計畫下的回購沒有變動。如我所說，我們大約有 4 億美元。我們的計畫是在今年把這筆錢用掉。任何超出這個額度的部分，都需要董事會制定新的計畫。過去的慣例是，他們會等我們完成一個計畫後才會啟動新的計畫。

Okay, great. Thanks, Jim.

好的，很棒。謝謝，Jim。

Patrick Newton, Stifel.

Stifel 的 Patrick Newton。

Thank you for taking my questions. Good morning, Jim. Two different questions one on pricing, and I guess one on Optical Communications. On the pricing side, you talked about panel pricing trends in the quarter remaining relatively healthy. I'm curious as your thoughts on whether the tight capacity trends are somewhat sustainable in the intermediate term, or whether you think it's due to, perhaps some temporary drivers in the quarter, which would be the World Cup strength that you alluded to, or maybe some benefits from the IP refresh due to the end-of-life of Windows XP?

謝謝讓我提問。早安，Jim。兩個不同的問題，一個關於定價，另一個我想是關於光通訊。在定價方面，你提到本季面板定價趨勢仍相對健康。我想了解你對於產能吃緊的趨勢在中期是否具有一定可持續性，或你認為這是因本季一些暫時性驅動因素所致，例如你提到的世界盃帶動，或是因 Windows XP 停止支援而帶來的 IT 更新換代效益？

What our Display commercial team believes and what they're hearing from our customers is the tightness is going to continue into the fourth quarter. I'm noting some of the panel makers who have been announcing in the last couple days making similar comments. We have to take that at their word that they're continuing to run at a strong level, and are giving us indications they're going to do that into the fourth quarter.

我們顯示事業的商務團隊所相信的，以及他們從客戶那裡聽到的，是這種吃緊狀況會延續到第四季。我也注意到，過去幾天有些面板廠的公告也發表了類似看法。我們只能相信他們的說法：他們會持續以強勁水準運轉，並向我們表示會一路維持到第四季。

We think the IT thing has been a pleasant surprise basically all year long. We think it's more than just the Windows thing. We know that corporations have extended their refresh cycles, but they can't go on forever. Some of our IT customer contacts actually flagged this to us earlier back in the spring, that they thought that the IT portion of the market was going to be stronger and actually tight. We feel generally overall quite good about the panel utilization, the tightness, that leading to firm panel prices, and that continuing.

我們認為 IT 這塊基本上整年都是個令人驚喜的正面因素。我們認為不只是 Windows 的因素。我們知道企業延長了更新週期，但不可能無限期延下去。我們的一些 IT 客戶聯絡人其實在春季更早時就提醒我們，他們認為市場的 IT 部分會更強、而且實際上會偏緊。整體而言，我們對面板產能利用率、供給吃緊（進而帶動面板價格堅挺）以及其延續性，都感到相當樂觀。

Any concern that this tight utilization could lead to some capacity build?

會不會擔心這種高利用率、供給吃緊，會導致一些產能擴建？

I won't comment on our customers building panel fabs. As you know, there are a number under construction in China. But suddenly someone making a sudden decision to a panel fab does not -- you're talking about that showing up a year and half later, so I would doubt that to be the case. I think there's well-known plans of expansion in China. Frankly, that's the only place there is any panel expansion really at this point.

我不評論我們客戶興建面板廠的事。如你所知，中國有好幾座正在興建中。但就算有人突然決定要蓋一座面板廠——那也要一年半後才會反映出來，所以我不太認為會是這種情況。我認為中國的擴產計畫是眾所周知的。坦白說，就目前而言，真正有面板擴產的地方也只有那裡。

All right, thank you. Shifting gears to Optical Communications, can you help us understand the contribution that you're seeing from data centers, or your visibility into data center builds or upgrades? You mentioned NBN kicking in a little bit in the current quarter. Could you remind us where you stand on the project as far as the duration remaining, and the percentage of completion from a Corning perspective?

好的，謝謝。切換到光通訊，你能否協助我們理解你們從資料中心看到的貢獻，或你們對資料中心建置或升級的能見度？你提到 NBN 在本季開始有些貢獻。你能否提醒我們，就該專案而言，從剩餘期間以及以康寧的角度來看完成百分比，目前進度如何？

The duration still is quite long, but they are still evaluating whether they are going to take the pure fiber-to-the-home technology all the way that they originally planned. We have had some favorable comments that maybe they will do better, more than what they said last October but I don't have any percentage of completion. I don't have the data center numbers with me. That's been good this year, but I don't have any specific numbers. I know enterprise was up I think about 10% in the quarter.

剩餘期間仍然相當長，但他們仍在評估是否要如原先規劃那樣，全面採用純光纖到府（FTTH）技術。我們聽到一些正面的說法，可能他們會做得比去年十月所說的更好、更多，但我沒有任何完成百分比。我手邊也沒有資料中心的數字。今年那部分表現不錯，但我沒有具體數字。我知道企業端本季好像成長了約 10%。

Thank you. Good luck.

謝謝。祝順利。

Ehud Gelblum, Citigroup.

Citigroup 的 Ehud Gelblum。

Couple of questions. Want to hit on pricing in LCD, and then hit on Gorilla for a second. The calculations of low teens volume growth. Is it right to assume that pricing in LCD was down around 6% to 7%?

幾個問題。想先談 LCD 的定價，然後再談一下 Gorilla。你們計算出出貨量成長在低十位數。是否可以合理假設 LCD 的價格下滑約 6% 到 7%？

That is too high.

那個數字太高了。

Okay, so low teens is barely low teens?

好的，所以低十位數其實只是勉強算低十位數？

That's where my script led. In my script I said edged into.

那是我講稿裡的說法。在我的講稿中，我說的是「略微進入」。

Right. I heard that. I just want to make sure it wasn't -- or how big an edge it was, but that makes a lot more sense. Then your expectations for Q4, given that you managed to get your pricing contracts for Q3 back into the moderate range of 2013. Should we essentially be expecting that to continue into Q4, or are there other reasons that you would not be comfortable thinking that far ahead?

了解。我有聽到。我只是想確認不是——或是想了解「略微」到底有多大，但這樣就合理多了。那麼你們對第四季的預期呢？鑑於你們成功讓第三季的定價合約回到 2013 年的中度區間。我們是否基本上可以預期第四季會延續，還是有其他原因讓你不願意把展望看得那麼遠？

I'm thinking that far ahead. We think all the things that are going on in the industry would lead us to have the confidence that we will be able to have another moderate quarter in Q4.

我是在想得那麼長遠。我們認為產業中正在發生的所有事情，會讓我們有信心在第四季仍能再交出一個溫和的季度表現。

Okay, that's helpful. Going back to a previous question on Gorilla, and your comments of delays and variability in some product launches. Were you implying or talking about launches in Q2 that are now getting pushed out into second half from customers, or are you talking about launches that you expected for Q3 that are getting pushed out later into Q3 or into Q4?

好的，這很有幫助。回到先前關於 Gorilla 的問題，以及你提到部分產品上市時程的延遲與波動。你是在暗示或談到原本第二季要上市、現在被客戶延後到下半年，還是你在談原本預期第三季上市、但被延後到第三季更晚或第四季的上市案？

I was talking about launches in the second half of the year that we, because of the length of the supply chain, we'd be getting call on the product shipping in the May-June time frame, and that was less than what we had expected against our forecast in the month of July which are, obviously, almost finished. We are seeing pull on that front.

我談的是下半年要上市的案子；由於供應鏈很長，我們會在 5 到 6 月期間收到產品出貨的拉貨訊號，而那個拉貨量相較於我們在 7 月（顯然現在幾乎已經結束）所做的預測，低於我們原先的預期。我們確實看到那一端有拉貨。

Okay. With LCD inventory lease, I believe you said it was around 17 weeks right now. Can you give us a sense as to what Gorilla inventory weeks look like in the channel from your shipment on through?

了解。關於 LCD 的庫存週數，我記得你說目前大約是 17 週。你能否讓我們了解一下，從你們出貨之後一路到通路端，Gorilla 的通路庫存週數大概是什麼樣子？

No, I said LCD was at 18 weeks in Q2. I don't have any information on Gorilla in the supply chain. It's very difficult to get information on the number of weeks.

不，我說的是 LCD 在第二季是 18 週。我沒有 Gorilla 在供應鏈中的任何資訊。要取得週數資訊非常困難。

Do you think it's contracting, or is it staying roughly where it is? I assume that's higher than 18?

你覺得它是在收縮，還是大致維持在目前水準？我猜那應該高於 18 週？

I just said, I don't have information on the supply chain for Gorilla, so I can't give you a number of weeks.

我剛剛說了，我沒有 Gorilla 供應鏈的資訊，所以我無法給你週數。

Okay. I appreciate it. Sorry about that. Last thing I wanted to explore a little bit was Hemlock. It's now obviously back in the equity earnings as of Q1. From the guidance it looks like you expect it to be relatively flat, and then up in Q4. Can you give us a little overview on the trends going on there, and how we should be modeling that going forward?

好的。我明白了。抱歉問了這個。最後我想稍微探討一下 Hemlock。很明顯它從第一季起又回到權益法收益裡。從指引看起來，你們預期它大致持平，然後在第四季上升。你能否概述一下那邊的趨勢，以及我們未來應該如何建模？

Yes, we actually disclosed in our Q1 what the Hemlock numbers were last year. Quarter two of last year we made some money, so by quarter three we didn't make any money last year in Hemlock. It's very uneven. That unevenness comes about by how the customers are on the contracts pull their product. In general, our experience last year was Q4 was very strong, because that's when people must meet their contractual demand. They can delay for a couple quarters, but they have to take it.

可以，我們其實在第一季已揭露 Hemlock 去年的數字。去年第二季我們有賺一些錢，所以到第三季，去年在 Hemlock 就沒有賺錢。它非常不均勻。這種不均勻主要來自客戶依合約拉貨的方式。一般而言，我們去年的經驗是第四季非常強，因為那時大家必須滿足合約需求。他們可以延後一兩個季度，但最後還是得把貨提走。

Overall, I think we see very positive trends right now in the polysilicon market. Spot prices have moved up quite a bit from where we were. The down side would be that we just had announcement on Friday night by the US government about more anti-dumping regulations. We don't know how that will impact the growth of the market. Fundamentally, we're not really shipping into China today, so it doesn't really affect Hemlock very much.

整體來看，我認為我們目前在多晶矽市場看到非常正面的趨勢。現貨價格相較於先前水準已上升不少。不利因素是，美國政府在週五晚上宣布了更多反傾銷規定。我們不知道這會如何影響市場成長。從基本面來看，我們今天其實並沒有大量出貨到中國，所以對 Hemlock 的影響不大。

Okay, appreciate it. Thank you.

好的，了解。謝謝。

Steven Fox, Cross Research.

Steven Fox，Cross Research。

Thanks, good morning. First question, just going back on the CPM synergies. Jim, if you're pulling forward some of the synergies expected in 2017 into 2016, and we look at the $90 million for the full year this year, is it a straight line in terms of how we should think about synergies for 2015 more back-end loaded? Any color you can provide there would be helpful, and then I had a follow-up.

謝謝，早安。第一個問題，回到 CPM 的綜效。Jim，如果你把原本預期 2017 年實現的一部分綜效提前到 2016 年，而我們看今年全年 9,000 萬美元的數字，那麼就 2015 年的綜效來看，我們應該把它視為線性發生，還是會更偏向下半年較多？你能提供一些說明會很有幫助，然後我還有一個追問。

I don't have the synergies handy, broken quarter by quarter. I doubt that there is a lot of variability as it goes through, but I just don't have that level of precision.

我手邊沒有把綜效按季度拆分的資料。我不認為在推進過程中會有很大的波動，但我沒有那麼精細的數據。

Okay. Secondly, just getting back to the unbranded cover market, cover glass market. Given the growth opportunity there, I don't know if there's any more color you can provide in terms of where you're actually getting some of the growth from. I know you addressed some of this in some earlier comments, but just trying to understand anything you can do to maybe accelerate your penetration, if not by the end of this year but into 2015, and what that opportunity could look like? Thanks.

好的。第二個問題，回到非品牌的保護蓋市場、蓋板玻璃市場。考量那裡的成長機會，我不確定你是否能再多提供一些細節，說明你們的成長實際上是從哪裡來的。我知道你在先前的評論中有提到一些，但我想了解你們是否能做些什麼來加速滲透率——即使不是在今年底，也是在 2015 年——以及那個機會可能會是什麼樣子？謝謝。

I'm not sure what you mean by unbranded, Steve. Could you help me?

Steve，我不太確定你所說的「非品牌」是什麼意思。你能說明一下嗎？

Yes, I'm sorry. On the unbranded tablet market, where you're selling cover class right now. You mentioned the only growth you're seeing some tablets right now is unbranded OEMs?

可以，抱歉。我是指非品牌平板市場，你們目前在那裡銷售蓋板玻璃。你提到目前你看到的平板成長主要來自非品牌 OEM？

We have share there. We do quite well with that. It's just we don't have the same share as what we have in some branded ones that you're very familiar with in the United States. We're always trying to demonstrate that our Gorilla products are a better quality product and provide better damage resistance. I think that's really our approach. Combined with marketing, which we do a small amount of and intend to continue to do that. We shifted more of our marketing spend to Asia going forward. I think those are the things we could do.

我們在那裡有市佔。我們做得相當不錯。只是我們的市佔不像你在美國非常熟悉的一些品牌那麼高。我們一直在努力證明我們的 Gorilla 產品品質更好、耐損傷性更佳。我認為這就是我們的做法。再加上行銷，我們做的量不大，但打算持續。我們未來把更多行銷支出轉向亞洲。我想這些就是我們能做的事。

Okay. Thank you very much.

好的。非常感謝。

Brian White, Cantor Fitzgerald.

Brian White，Cantor Fitzgerald。

Wondering if you could talk a little bit about pricing for Gorilla Glass. Given this slow-down, what has happened to pricing in the quarter, and as you look forward into the September quarter?

想請你談談 Gorilla Glass 的定價。在這次放緩之下，本季定價發生了什麼變化？以及展望 9 月季度時，你怎麼看？

The sequential price declines Q2 to Q1 were almost immaterial, I'd say. We had the big step-down that we talked about in Q1, but really nothing of any significance in Q2. I think we have a minor amount in Q3 in one of our contracts. I think the next big change statement will likely be, because most of these contracts are annual, will be Q1 of next year. Frankly, it's a little early for me to know what that would be. I don't think we expect price to be a big play for the remainder of this year.

第二季相較第一季的連續性價格下滑幾乎可以說不太重要。我們在第一季談到過一次較大的降價階梯，但第二季真的沒有任何顯著變化。我認為第三季在我們其中一份合約裡會有小幅調整。我想下一次較大的變動很可能會在明年第一季，因為多數合約是按年度。坦白說，現在要我知道那會是多少還太早。我們不預期今年剩餘時間價格會是主要變數。

Okay. Jim, in the December quarter we should expect Gorilla Glass to grow sequentially? Given some of these delays we should see a little bit of growth in the December quarter, or not?

好的。Jim，在 12 月季度我們應該預期 Gorilla Glass 會呈現季增嗎？考量其中一些延遲，我們是否會在 12 月季度看到一些成長，還是不會？

It is really hard for me to judge right now. I think it would be -- my general feeling is it might be flattish volume Q3 versus Q4. A lot will depend on the pull of these models. But the big step up from where we've been running occurs in Q3, in terms of volume.

我現在真的很難判斷。我認為——我的整體感覺是，第三季相較第四季的出貨量可能大致持平。很多將取決於這些機型的拉動力道。但就出貨量而言，真正從我們目前的運行水準大幅上升的時間點是在第三季。

Okay. Finally, if you could just give us a general direction how important the tablet market is to Gorilla? Is it 20%, 30%, just some ball park range would be great.

好的。最後，如果你能給我們一個大方向，平板市場對 Gorilla 的重要性有多大？是 20%、30%？給個大概區間就很好。

The tablet market is about 40% of our demand.

平板市場約占我們需求的 40%。

Great. Thank you.

太好了。謝謝。

We obviously expected it to be more than that originally in the year.

顯然，我們原本在年初預期會比這個比例更高。

Okay, fantastic. Thanks.

好的，太棒了。謝謝。

Andrew Abrams, JG Capital.

Andrew Abrams，JG Capital。

Hi, a quick question on the TV market. You mentioned about some pull-in from the World Cup. Would you expect that to have a material impact on what you would have expected for third quarter in terms of TV demand, or is it insignificant enough not to make a difference?

你好，我有個關於電視市場的簡短問題。你提到世界盃帶來一些提前拉貨。你預期這會對你們原先對第三季電視需求的預期造成實質影響嗎？還是影響小到不足以改變結果？

I think falls into the insignificance. We were just delighted by -- sometimes we get people overly focused on sporting events. For example in Europe in the month of May, televisions were up 13%, where as for the four months prior to that they basically were just up or down in the single digits. In South America in the month of April up 25%; 64% in the month of May, but it's not going to change our numbers overall.

我認為這屬於影響不大。我們只是很高興——有時候大家會過度聚焦在體育賽事上。例如在歐洲，5 月電視銷量年增 13%，而前四個月基本上只是個位數的上下波動。南美在 4 月年增 25%；5 月年增 64%，但這不會改變我們整體的數字。

Okay. Lastly, on your plans for the assets from SCP, I know you were doing some conversions in Korea toward Gorilla Glass. Based on your outlook for Gorilla Glass on a general basis, are those plans going to change, or is that more locational than volume-wise?

好的。最後，關於你們對 SCP 資產的規劃，我知道你們在韓國做了一些轉換以生產 Gorilla Glass。基於你們對 Gorilla Glass 整體的展望，這些計畫會改變嗎？還是那更多是地點因素，而不是出貨量因素？

Obviously, we don't have a need as much Gorilla right now, but our plan still remains as tanks in Japan reach the end of their life on Gorilla. They will go down permanently, and then we will shift that demand over to Korea. The pace may be slightly slower, but I know that we have a couple tanks that were going to light on Gorilla at the end of the quarter three heading into quarter four.

顯然，我們目前對 Gorilla 的需求沒有那麼大，但我們的計畫仍然是：當日本的槽爐在 Gorilla 產品上達到使用壽命終點時，它們會永久停下來，然後我們會把那部分需求轉移到韓國。進度可能會稍微慢一些，但我知道我們有幾座槽爐原本計畫在第三季末、進入第四季時點火生產 Gorilla。

Got it. Thanks very much.

了解。非常感謝。

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

Tom，我們還有時間再問最後一個問題。

Alberto Moel, Sanford Bernstein.

Alberto Moel，Sanford Bernstein。

Good morning, Jim. Just a question on the downstream Gorilla business. As you know, you sell blanks to the customers and then they finish them. But I understand that there is some work that you've been doing in downstream. You bought a laser company for laser cutting and so on, so forth. Do you have some update on where that's sitting, and where that business is heading? I'm curious to know if you have any color on that? Thanks.

早安，Jim。我想問一下 Gorilla 下游業務。如你所知，你們把玻璃毛胚賣給客戶，然後由他們進行後段加工。但我了解你們也在下游做了一些工作。你們收購了一家雷射公司，用於雷射切割等等。你能否更新一下目前進展如何，以及這塊業務的走向？我想知道你是否能提供一些看法？謝謝。

The downstream business, the parts business has quite a bit of variability to it quarter by quarter, so I don't have much of an update. The laser business is going quite well. I think shipments will be quite strong in quarter three. I don't have a list of the customers so I can't really help you on that. Parts business varies up and down in the quarters, but the mainstream for us in Gorilla is selling glass.

下游業務、也就是零件業務，每一季的波動性相當大，所以我沒有太多更新。雷射業務進展得相當順利。我認為第三季出貨會相當強勁。我手上沒有客戶名單，所以在這方面沒辦法提供太多協助。零件業務在各季之間會上下波動，但對我們而言，Gorilla 的主流仍是銷售玻璃。

Thank you.

謝謝。

Okay, so we will wrap up. I've got one IR announcement. We will be appearing at the Citi conference on September 3 in New York City. I'd like to remind you of a couple of highlights. The most recent quarter was our seventh consecutive quarter of year-over-year earnings growth. We are absolutely delighted by the LCD glass price declines. In the third quarter they moderated further, and I think very important to us is we are back to the rates that we saw for most of 2013.

好的，那我們就做個總結。我有一則投資人關係（IR）公告。我們將於 9 月 3 日在紐約市出席花旗（Citi）會議。我想提醒各位幾個重點。最近一季是我們連續第七季的年對年獲利成長。我們對 LCD 玻璃價格下滑感到非常振奮。在第三季，跌幅進一步趨緩，而對我們非常重要的是，我們已回到 2013 年大部分時間所見的降價速度水準。

The integration of Corning Precision Materials is going very well, already delivering results, and will be better than original plan. Plan to achieve the $90 million in synergies this year, part of our additional $350 million impact for the year. I think Optical Communications and Environmental segments are having fabulous years, particularly Environmental. We are delighted by that. We think we're on track to deliver sales and earnings growth in every business for the full year. Feel really good about our first-half results, and are confident we can deliver on the plan. Ann?

Corning Precision Materials 的整合進展非常順利，已經開始交出成果，且表現將優於原先計畫。今年計畫實現 9,000 萬美元的綜效，這是我們今年額外 3.5 億美元影響的一部分。我認為光學通訊與環境事業部今年表現非常出色，尤其是環境事業部。我們對此感到非常高興。我們認為我們正按計畫推進，全年各事業都能實現營收與獲利成長。我們對上半年成果感覺非常好，也有信心能達成計畫。Ann？

Thank you, Jim, and thank you all for joining us today. Playback of the call is available beginning at 11 a.m. Eastern today, and will run until 5 p.m. Eastern Tuesday, August 12. To listen, dial (800) 475-6701. The access code is 330195. The audio cast, of course, is available on our website during that time, as well. Operator, that concludes our call. Please disconnect all lines.

謝謝你，Jim，也謝謝各位今天加入我們。電話會議的重播將於今天美東時間上午 11 點開始提供，並持續到美東時間 8 月 12 日（週二）下午 5 點。要收聽請撥打 (800) 475-6701。存取碼為 330195。當然，在此期間也可在我們的網站上收聽網路音訊直播回放。接線生，我們的電話會議到此結束。請斷開所有線路。

Thank you. Ladies and gentlemen, that does conclude our conference for today. We thank you for your participation, and using the AT&T Executive Teleconference. You may now disconnect.

謝謝。各位女士、先生，今天的電話會議到此結束。感謝各位的參與，並使用 AT&T Executive Teleconference。您現在可以掛線。