康寧 (GLW) 2014 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the Corning Incorporated fourth quarter 2014 earnings results conference call. At this time, all participants are in a listen-only mode.

各位女士、先生，感謝您耐心等候。歡迎參加康寧公司（Corning Incorporated）2014 年第四季財報結果電話會議。此刻所有與會者皆處於僅收聽模式。

(Operator Instructions)

(接線員指示)

As a reminder, this conference is being recorded. I would now like to turn conference over to your host, Division Vice President of Investor Relations, Ms. Ann Nicholson. Please go ahead.

提醒各位，本次會議將被錄音。現在我想把會議交給本次主持人——投資人關係部門副總裁 Ann Nicholson 女士。請開始。

Thank you, Greg. Good morning, everyone. Welcome to Corning's fourth quarter conference call. With me today is Jim Flaws, Vice Chairman and Chief Financial Officer.

謝謝你，Greg。各位早安。歡迎參加康寧第四季電話會議。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 financial 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財務報告中詳述。

You should also note that this presentation contains a number of non-GAAP measures. Reconciliations can be found on our website. Now, I'll turn the call over to Jim.

另請注意，本簡報包含多項非 GAAP 衡量指標。對帳表可於我們的網站查閱。現在我把電話交給 Jim。

Thanks, Ann. Good morning, everyone. I'm delighted to share our fourth quarter and full-year results with you this morning. Corning had an outstanding quarter that wrapped up 2 consecutive calendar years of quarterly earnings growth. We entered 2014 with the goal to grow sales and earnings significantly. We delivered on this call with year-over-year earnings growth in every quarter.

謝謝你，Ann。各位早安。我很高興在今天早上與各位分享我們第四季及全年業績。康寧本季表現非常出色，並為連續兩個曆年、每季盈餘成長畫下句點。我們在 2014 年初設定的目標是大幅提升營收與盈餘。我們在每一季都實現了年對年盈餘成長，達成了這項承諾。

For the full year, sales grew 29%, and earnings per share grew 24%. Integration of CPM in Korea was a significant driver of the earnings increase, and additionally in our four other non-display segments we achieved excellent growth which of course has been a long-standing goal. In aggregate, they grew sales and net income of approximately 10%.

全年而言，營收成長 29%，每股盈餘成長 24%。韓國 CPM 的整合是盈餘增加的重要推動力；此外，我們在其他四個非顯示器事業部也達成了優異成長，這當然一直是我們長期的目標。合計來看，這些事業部的營收與淨利約成長 10%。

We also delivered on our commitment to return cash to shareholders with our recent December announcement of a 20% increase in the dividend and a new share repurchase program of $1.5 billion. We feel great about our momentum entering 2015 and expect to deliver continued sales and earnings growth in the new year.

我們也履行了將現金回饋股東的承諾：在去年 12 月宣布股利提高 20%，並推出 15 億美元的新股票回購計畫。我們對進入 2015 年的動能感到非常振奮，並預期在新的一年持續帶來營收與盈餘成長。

Now I'd like to turn to our quarter four results beginning with some highlights. We had a fantastic quarter that was better than we originally expected. Earnings per share were up 55% versus last year lead by the consolidation of CPM with Optical Communications, Environmental, and Dow Corning's equity earnings, and slightly lower tax rate also contribute to growth.

接下來我想從一些重點開始，說明第四季的業績。我們本季表現非常亮眼，優於原先預期。在 CPM 併入合併報表的帶動下，加上光通訊、環境事業，以及道康寧（Dow Corning）的權益法收益，且稅率略低亦有助於成長，使得每股盈餘較去年成長 55%。

LCD glass volume was better than expected driven by strong demand for larger LCD televisions, the volume up in the mid-teens year-over-year, and mid-single digits sequentially. Display set a quarterly record for sales volume.

LCD 玻璃出貨量優於預期，主要受更大尺寸 LCD 電視的強勁需求帶動；出貨量年對年成長約十幾個百分點，季對季成長約中個位數百分比。顯示器事業創下單季銷售量紀錄。

LCD glass price declines were moderate again as expected and declined less than Q3. LCD glass demand continues to be good entering Q1, and we believe this is due to stronger retail demand in Q4 for larger televisions, replenishing supply for Q1 which is also a typically good quarter for retail television sales.

LCD 玻璃價格下滑幅度如預期再度溫和，且降幅小於第三季。進入第一季後，LCD 玻璃需求仍然良好；我們認為這是因為第四季零售端對大尺寸電視的需求較強，帶動第一季補庫存，而第一季通常也是電視零售銷售表現不錯的季度。

We launched our next generation of Gorilla Glass during the quarter end, and it's receiving very favorable reviews by customers and at the recent Consumer Electronics Show. Specialty material sales in the quarter exceeded our expectations driven by demand for Gorilla Glass for new product launches.

我們在季末推出新一代 Gorilla Glass，並在客戶端及近期的消費性電子展（Consumer Electronics Show）獲得非常正面的評價。本季特殊材料（Specialty Materials）銷售超出預期，主要由新產品上市帶動的 Gorilla Glass 需求所驅動。

CPM integration activities have gone very well, and we have exceeded our synergy goal for the year. Equity earnings from Dow Corning were also ahead of expectations in Q4, driven mainly by higher sales of polysilicon.

CPM 的整合工作進展非常順利，我們也已超越今年的協同效益目標。道康寧的權益法收益在第四季亦優於預期，主要受多晶矽銷售增加所帶動。

Now let's delve into the fourth quarter details. Fourth quarter sales were $2.6 billion, up 30% versus last year. Gross margin was 45%. We improved year-over-year gross margin every quarter this year. Gross equity earnings of $116 million were more than expected by Dow Corning, and I'll cover that in more detail in a few moments.

現在讓我們深入第四季的細節。第四季營收為 26 億美元，較去年成長 30%。毛利率為 45%。今年我們每一季的毛利率皆較去年同期改善。權益法收益總額為 1.16 億美元，高於道康寧的預期；我稍後會更詳細說明。

Other income includes a payment for the settlement of dispute over the use of fusion technology in China. This was the final payment to Corning. Please recall we had a similar payment in 2013 in the same quarter, so it had no impact on our year-over-year gains in the quarter.

其他收入包含一筆款項，係就中國境內使用熔融成形（fusion）技術的爭議達成和解所支付。這是支付給康寧的最後一筆款項。請回想，我們在 2013 年同一季度也收到類似款項，因此對本季年對年增幅沒有影響。

EPS was $0.45 up $0.16 versus a year ago and completes two calendar years of quarterly year-over-year earnings growth. During the quarter we spent approximately $183 million to repurchase shares. We completed the October 2013 repurchase program in quarter 4 and have now begun repurchasing shares under our new program in January.

每股盈餘為 0.45 美元，較一年前增加 0.16 美元，並完成連續兩個曆年、每季年對年盈餘成長。本季我們約花費 1.83 億美元回購股票。我們在第四季完成了 2013 年 10 月的回購計畫，並已於 1 月開始依據新的計畫回購股票。

For the year, sales were $10.2 billion, up 29% over 2013. Corporate gross margin was up 2.4 points. The integration of CPM and Display cost reduction drove a large portion of year-over-year improvement. Optical Communications, Environmental also improve their profitability this year.

全年營收為 102 億美元，較 2013 年成長 29%。公司整體毛利率提高 2.4 個百分點。CPM 的整合以及顯示器事業的成本降低，帶動了年對年改善的大部分。光通訊與環境事業今年也提升了獲利能力。

S&A and R&D were up year-over-year in dollars due to the consolidation of CPM. As a percentage of sales, we lowered S&A and [RD&E]. Year-over-year decline in gross equity earnings reflects the elimination of SCP equity earnings following is the acquisition and its consolidation.

銷售與管理費用（S&A）及研發費用（R&D）以金額計年對年增加，係因 CPM 併入合併報表。以營收百分比計算，我們降低了 S&A 與 [RD&E]。權益法收益總額年對年下降，反映在收購並合併後，SCP 的權益法收益已被消除。

Effective tax rate for the year was 16.8%, slightly lower than our original expectations. It was helped by regional mix and the extenders bill which passed in December.

全年有效稅率為 16.8%，略低於我們原先預期。這受惠於區域組合，以及 12 月通過的延長條款法案（extenders bill）。

Earnings per share for the year were $1.53, up 24%. This year-over-year improvement is the result of additional earnings from Corning Precision Materials, earnings growth in Environmental and Optical Communications, earnings growth in Dow Corning, as well as the impact of share repurchases.

全年每股盈餘為 1.53 美元，成長 24%。這項年對年改善來自康寧精密材料（Corning Precision Materials）的新增獲利、環境與光通訊事業的獲利成長、道康寧的獲利成長，以及股票回購的影響。

Now I'll turn to our detail segments, and I'd like to start with Display. Display sales were $1.1 billion in Q4, 69% increase versus last year.

接下來我將說明各事業部門的細節，先從顯示器事業開始。顯示器事業第四季營收為 11 億美元，較去年成長 69%。

Overall our market share remains stable, and LCD glass price declines were again moderate. Sequentially our LCD glass volume was up in the mid-single digits.

整體而言，我們的市占率維持穩定，LCD 玻璃價格下滑幅度再次保持溫和。季對季來看，我們的 LCD 玻璃出貨量成長約中個位數百分比。

Let me provide you more detail about LCD glass demand and retail. In Q4, we believe television retail sell-through units where up high-single digits year to date.

我再提供一些關於 LCD 玻璃需求與零售端的細節。在第四季，我們認為電視零售終端銷售（sell-through）台數年初至今成長約高個位數百分比。

TV area growth measured in square feet of glass sold was up approximately mid-teens, representing a strong holiday season at retail. Panel makers ran at high utilizations to meet the strong demand for large televisions over the holiday and to restock supply chain for Q1.

以玻璃銷售面積（平方英尺）衡量的電視面積成長約十幾個百分點，顯示零售端假期旺季表現強勁。面板廠以高稼動率運轉，以滿足假期期間對大尺寸電視的強勁需求，並為第一季補足供應鏈庫存。

Supply chain inventory remained healthy exiting the quarter with forward-looking weeks of inventory at approximately 17.5 weeks. Gross equity earnings from equity venture in Korea, SCG, were immaterial.

季度結束時，供應鏈庫存仍維持健康水準，前瞻性庫存週數約為 17.5 週。來自韓國權益合資企業 SCG 的權益法收益並不重大。

Net income was up 26% over the year reflecting the impact of additional sales earnings and synergies from CPM. I can't emphasize enough the outstanding job the Display organization has done with cost reduction and successfully integrating CPM.

全年淨利成長 26%，反映新增銷售帶來的獲利以及 CPM 的協同效益影響。我再怎麼強調都不為過：顯示器團隊在成本降低以及成功整合 CPM 方面做得非常出色。

Now for the full year, Display segment sales were $4.4 billion, up 63% driven by the addition of CPM sales. Full-year net income was up 11%. In looking at sales and net income growth rates, remember we consolidated 100% of CPM sales in our reporting for 2014, but only the other half of the net income.

就全年而言，顯示器事業部銷售額為44億美元，年增63%，主要由於納入CPM銷售所帶動。全年淨利年增11%。在觀察銷售與淨利成長率時，請記得我們在2014年的報表中合併了CPM銷售的100%，但淨利只合併了其中的另一半。

Our full-year volume was up slightly more than 10%, in line with the glass industry. Our volume growth was offset by price declines which were larger the first half of the year. We did achieve more moderate price declines in a second half, and this is continuing into Q1.

我們全年出貨量小幅成長超過10%，與玻璃產業趨勢一致。我們的出貨量成長被價格下滑所抵銷，而價格下滑在上半年更為明顯。我們在下半年確實達成較為溫和的價格下滑幅度，且此趨勢延續至第一季。

As we track the heartbeat of pricing without the impact of thick to thin and customer mix, we feel very good about the level of declines we've experienced for the last three quarters. Volume in synergies and cost reductions helped the business improve gross margin percent for the full-year. Actual synergies for the year where greater than our expectation of $100 million.

在追蹤價格變動的脈動、排除厚轉薄與客戶組合影響後，我們對過去三個季度所經歷的降幅水準感到非常滿意。出貨量、綜效與成本降低，協助業務在全年提升毛利率。本年度實現的綜效高於我們原先預期的1億美元。

We estimate the glass market at retail for 2014 was approximately 4.4 billion square feet, up approximately 10%. Our preliminary estimates of TV unit sell-through indicate year-over-year unit sales where up in the mid-single digits. All regions except Japan grew unit sales year-over-year.

我們估計2014年零售端玻璃市場約為44億平方英尺，約成長10%。我們對電視終端銷售量（sell-through）的初步估計顯示，年對年單位銷量成長約為中個位數百分比。除日本外，各地區的單位銷量皆較去年成長。

Average television size increased again in 2014 and drove glass market growth. We estimate TV area growth was up in the mid-teens. Fifty-inch plus televisions grew greater than 50% in 2014, and the average screen size increased more than an inch.

2014年平均電視尺寸再度增加，並帶動玻璃市場成長。我們估計電視面積成長約為十幾個百分點。50吋以上電視在2014年成長超過50%，平均螢幕尺寸增加超過1吋。

Our Optical Communications Q4 sales were $676 million, up 12% versus last year and better than expected. [Area] sales in North America drove most of the increase versus expectations but enterprise exceeded as well.

我們光學通訊事業第四季銷售額為6.76億美元，較去年成長12%，且優於預期。[Area]北美地區的銷售帶動了相較預期的大部分增幅，企業端也同樣超出預期。

Net income was up 64% over last year's fourth quarter. The higher volume and improved cost structure led to another strong quarter for Optical Communications.

淨利較去年第四季成長64%。更高的出貨量與改善的成本結構，使光學通訊再度繳出強勁的一季。

For the full-year sales were nearly $2.7 billion, up 14%. Sales in all businesses were up year-over-year, and all regions except China contributed growth.

全年銷售額接近27億美元，成長14%。所有業務的銷售皆較去年成長，除中國外，各地區均貢獻成長。

Optical Communications annual net income of 2014 was up 18%. We are very pleased with the results and have great momentum in Optical entering 2015.

光學通訊2014年全年淨利成長18%。我們對成果非常滿意，光學通訊在進入2015年時具備很強的動能。

Now Environmental sales grew 5% year-over-year driven by heavy duty diesel sales in the United States, just slightly less than forecast due to some changes in customer end-of-year inventory management plans. Environmental's net income in quarter 4 was $40 million, also up 5% year-over-year.

環境事業銷售年增5%，主要由美國重型柴油產品銷售帶動；由於部分客戶年末庫存管理計畫有所調整，略低於預測。環境事業第四季淨利為4,000萬美元，同樣年增5%。

For the year, Environmental sales where up 19% driven primarily by a healthier US class A truck market and higher sales of heavy duty diesel products for new regulations in Europe and in China. Environmental expanded gross margins and grew net income 44% for the year, due to additional volume significant manufacturing efficiency improvements. We were also delighted by the performance and Environmental Technologies in 2014.

全年而言，環境事業銷售成長19%，主要受惠於更健康的美國Class A卡車市場，以及因應歐洲與中國新法規而帶動的重型柴油產品銷售增加。由於額外出貨量與顯著的製造效率提升，環境事業擴大毛利率並使全年淨利成長44%。我們也對2014年環境科技的表現感到非常欣喜。

Specialty material sales in the fourth quarter up 12% versus Q4 2013, and better than expected due to strong Gorilla Glass volume from device manufacturer and new product launches. Now net income in quarter four was down year-over-year by 13%. However, these results included an accounts receivable write-off. Without that write-off, net income would have been up 8%.

特種材料第四季銷售較2013年第四季成長12%，且優於預期，主要因裝置製造商帶動的Gorilla Glass強勁出貨量與新產品上市。第四季淨利年對年下滑13%。不過，這些結果包含一筆應收帳款沖銷。若不計該沖銷，淨利將成長8%。

For the full year, Specialty sales were up 3%. Net income was down 17%. Without the Q4 accounts receivable write-off, that income for the year would have been down 13%.

全年而言，特種材料銷售成長3%。淨利下滑17%。若不計第四季的應收帳款沖銷，全年淨利將下滑13%。

Our advance optic sales and earnings which is embedded in Specialty grew, while the 20% of growth of Gorilla Glass volume was largely offset by the price declines that occurred mostly in Q1. The cover glass market did not grow as much is we originally expected in 2014. The most significant disappointment to us was branded tablets not growing at all versus 2013.

我們嵌入於特種材料中的先進光學業務銷售與獲利成長；而Gorilla Glass出貨量成長20%則大致被主要發生在第一季的價格下滑所抵銷。2014年蓋板玻璃市場的成長不如我們原先預期。最令我們失望的是，品牌平板電腦相較2013年完全沒有成長。

However, we did have some accomplishments that are setting us up for a more successful 2015 in Specialty. First, we maintained our share against aluminosilicate glass competitors on devices. Second, this year we made progress on increasing our share in smartphones in China, and of course we launched Gorilla Glass 4. Drop performance of Gorilla Glass 4 is beneficial to device manufacturers, and we expect to be able to price for that added value.

不過，我們也達成了一些成果，正為特種材料在2015年更成功的表現奠定基礎。第一，我們在裝置端維持了相對於鋁矽酸鹽玻璃競爭對手的市占率。第二，今年我們在提升中國智慧型手機市占率方面取得進展，當然也推出了Gorilla Glass 4。Gorilla Glass 4的抗摔表現對裝置製造商有利，我們預期能就這項附加價值進行定價。

In Life Sciences Q4 sales where up 2% year-over-year. Net income was consistent with last year, and for the year Life Sciences sales were $862 million, slightly, and as a mentioned throughout 2014 the market do not grow as much, with one reason being a low level of NIH spending. Net income for the year was down 5%.

生命科學事業第四季銷售年增2%。淨利與去年持平；全年生命科學銷售額為8.62億美元，略為下降，且如同我們在2014年多次提到的，市場成長不如預期，其中一個原因是NIH支出水準偏低。全年淨利下滑5%。

Moving to Dow Corning, gross equity earnings from both silicones and polysilicon segments where up versus Q4 2013. Volume for was up for polysilicon as solar customers bought to fulfill their annual contract commitments. Additionally, manufacturing efficiency improved over last year.

接著談Dow Corning，來自矽酮與多晶矽兩個事業部的權益法收益總額，較2013年第四季成長。多晶矽出貨量上升，因太陽能客戶為履行年度合約承諾而採購。此外，製造效率也較去年改善。

The silicones business sales where consistent with Q4 of last year, but a lower tax rate and lower operating expense help profitability. Dow Corning exceeded our expectation for the quarter by $30 million with higher sales with polysilicon improved operational expenses.

矽酮業務的銷售與去年第四季一致，但較低的稅率與較低的營運費用提升了獲利能力。Dow Corning本季較我們預期高出3,000萬美元，主要來自多晶矽較高的銷售與改善的營運費用。

Now for the year Dow Corning's equity earnings were up $142 million. Both silicone and polysilicon sales where up. Silicone sales where up in the low-single digits as expected. Raw material pricing negatively impacted profitability slightly, but this was offset by a lower tax rate.

全年而言，Dow Corning的權益法收益增加1.42億美元。矽酮與多晶矽銷售皆成長。矽酮銷售如預期呈現低個位數成長。原物料價格對獲利略有負面影響，但被較低的稅率所抵銷。

Hemlock sales where up 32%, driven by a higher polysilicon sales to solar customers, and cost controls helped Hemlock improved profitability over 2013. Hemlock sales and profitability overall were more stable in 2014.

Hemlock銷售成長32%，主要由對太陽能客戶的多晶矽銷售增加所帶動；成本控管也協助Hemlock較2013年提升獲利能力。Hemlock在2014年的整體銷售與獲利更為穩定。

I'd like to take a minute to discuss Hemlock's impact on our results. Investors will recall we had excluded Hemlock in our 2013 from our core operating results as we had expected extreme volatility due to the trade issues. That volatility did not incur.

我想花一點時間說明Hemlock對我們業績的影響。投資人會記得，由於預期貿易議題將造成極端波動，我們在2013年將Hemlock排除在核心營運結果之外。但那樣的波動並未發生。

In 2014, we included Hemlock in core. In retrospect, my decision to exclude core in 2013 was one of my less brilliant ideas as CFO.

在2014年，我們將Hemlock納入核心。回頭看，我在2013年決定將其排除在核心之外，作為CFO而言並不是我最明智的想法之一。

I wanted to make sure you understood how much Hemlock contributed to our core earnings if we had been reporting it consistently. As you can see, even if we had included Hemlock in 2013, our 2014 results for Dow Corning would have shown significant improvement.

我想確保各位了解，如果我們一直以一致方式揭露，Hemlock對我們核心盈餘的貢獻有多大。如各位所見，即使我們在2013年就納入Hemlock，我們2014年Dow Corning的結果仍會顯示顯著改善。

Moving on to the balance sheet, we ended the fourth quarter with $6.1 billion in cash and short-term investments, strong free cash flow for the year at nearly $4 billion, including the dividends from CPM as we did that transaction. As a reminder, free cash flow is a non-GAAP measure. Reconciliation to GAAP can be found on our website. Capital spending for the year was $1.1 billion.

接著看資產負債表，我們在第四季末持有61億美元的現金與短期投資；全年自由現金流強勁，接近40億美元，其中包含我們完成CPM交易時取得的股利。提醒一下，自由現金流為非GAAP衡量指標。與GAAP的調節可在我們的網站上查閱。全年資本支出為11億美元。

Now before I move on to our outlook, I'd like to update you on our core performance reporting. I'll begin with a brief retrospective on core performance measures as we may have some new investors on the call.

在我進入展望之前，我想先向各位更新我們的核心績效報導方式。我將先簡要回顧核心績效衡量指標，因為電話會議中可能有一些新投資人。

As a reminder, our Display sales are priced in yen. We report in US dollars, so the earnings from Display sales translate into our GAAP income statement in dollars at the actual exchange rate during the quarter.

提醒一下，我們的顯示器（Display）銷售以日圓計價。我們以美元進行報告，因此顯示器銷售的收益會依據該季度的實際匯率，換算為美元並反映在我們的 GAAP 損益表中。

Following the election of the new Japanese prime minister in December of 2012, the yen began to weaken against the US dollar. We saw the yen weakened from JPY82 to the dollar November of 2012, to the low JPY90 level in early 2013.

在 2012 年 12 月日本新任首相當選後，日圓開始對美元走弱。我們看到日圓從 2012 年 11 月的 1 美元兌 82 日圓，走弱到 2013 年初約 90 日圓的低檔水準。

You may recall we took immediate action early 2013 to limit the adverse economic impact on Corning by entering into hedges. Our hedging contracts for 2013 and 2014 had an average exchange rate of JPY93 to the dollar.

您可能還記得，我們在 2013 年初立即採取行動，透過建立避險部位來限制對康寧的不利經濟影響。我們 2013 年與 2014 年的避險合約平均匯率為 1 美元兌 93 日圓。

We also gave some thought as to how the potential reporting of those hedges would inform our investors. GAAP is our official reporting for the Company.

我們也思考過，這些避險在潛在的會計呈現方式下，如何能讓投資人更好理解。GAAP 是本公司的正式財務報導基礎。

In GAAP reporting, we record the quarterly settlement of our yen contracts in the other income, other expense on our GAAP statements. You would see the weakening of the yen in sales and gross margin, but the gain on their hedges in other income, other expense.

在 GAAP 報導中，我們將日圓合約的季度結算金額記錄在 GAAP 報表的「其他收入、其他費用」項下。您會在銷售額與毛利率中看到日圓走弱的影響，但避險的收益則會出現在「其他收入、其他費用」。

However, GAAP also requires us to record the fair value of all of our contracts including those outstanding beyond the current quarter in our results. This mark-to-market of our entire hedge portfolio would also show up in other income, other expense.

然而，GAAP 也要求我們將所有合約（包括超出當前季度仍未到期的合約）的公允價值記錄在業績中。我們整體避險組合的按市價評價（mark-to-market）也會反映在「其他收入、其他費用」。

The result is investors would be unable to discern how much that line item was attributable to hedges for the current period versus hedges for the future periods. With the recent volatility of the yen, our GAAP results might be confusing to investors, so we felt this accounting while definitely appropriate would not help investors see the operational impact of volume in prices easily.

結果是，投資人將無法辨識該項目中有多少是歸因於當期避險、又有多少是歸因於未來期間的避險。在近期日圓波動下，我們的 GAAP 結果可能會讓投資人感到困惑，因此我們認為這種會計處理雖然完全恰當，但不利於投資人輕易看出數量與價格對營運的影響。

Our recent quarterly results show how confusing this has become. Our quarter four GAAP results include marking-to-market our cumulative hedges for 2015 to 2017. When the rate moved from JPY110 at the end of the quarter three to JPY120 at the end of Q4, we had a mark-to-market gain of $398 million.

我們近期的季度結果顯示這種情況已變得多麼令人困惑。我們第四季的 GAAP 結果包含對 2015 至 2017 年累計避險部位的按市價評價。當匯率從第三季末的 110 日圓變動到第四季末的 120 日圓時，我們產生了 3.98 億美元的按市價評價收益。

We also had a realized gain of $112 million for the hedge contracts settled in Q4. It's this latter gain that is important, and is the one that makes us feel comfortable using constant yen reporting at JPY93.

我們也對於在第四季結算的避險合約認列了 1.12 億美元的已實現收益。重要的是後者的收益，這也是讓我們有信心以 1 美元兌 93 日圓的固定日圓匯率進行核心（core）報導的原因。

I know this example is long, but I hope it helps you see our hedges are protecting the economics for the Company. They're complicated as you look at the operational performance in the quarter.

我知道這個例子有點長，但希望能幫助您理解，我們的避險正在保護公司的經濟利益。當您檢視季度營運表現時，這些內容會顯得相當複雜。

In February of 2013, we announced that in addition to our GAAP results, we would also provide our results using core performance measures, allowing investors a more clear view of the Company's core operating results. Our core performance results are stated at constant yen to US dollar exchange rate of JPY93. The primary purpose of the core performance measures are to allow investors to see operating results without the volatility of the yen and hedges [asking] operational performance.

在 2013 年 2 月，我們宣布除 GAAP 結果外，也將提供以核心績效衡量（core performance measures）呈現的結果，讓投資人能更清楚地看到公司的核心營運成果。我們的核心績效結果以固定的日圓兌美元匯率 1 美元兌 93 日圓表示。核心績效衡量的主要目的，是讓投資人能在不受日圓與避險波動影響的情況下，看見營運表現。

To summarize beginning in 2013, we became economically protected if the yen weaker than JPY93 with hedges, and we moved to core reporting to provide investors additional transparency on our operating results at constant exchange rate of JPY93.

總結來說，自 2013 年起，透過避險，我們在日圓弱於 1 美元兌 93 日圓時在經濟上受到保護；同時我們改採核心報導，以固定匯率 1 美元兌 93 日圓提供投資人更高的營運透明度。

Now let me fast forward to January 2015. As you know the yen has continued to weakened from its early 2013 level of the low JPY90s to the upper JPY90s at the beginning of 2014. We made the decision to extend our economic hedge protection beyond 2014.

現在讓我快轉到 2015 年 1 月。如您所知，日圓持續從 2013 年初約 90 日圓的低檔水準，走弱到 2014 年初約 90 日圓的高檔區間。我們決定將經濟避險保護延伸至 2014 年之後。

We entered into hedges for 2015 to 2017 at an average rate of JPY99 to $1. Earnings are now economically 100% hedged against the yen in 2015, approximate 80% hedged in 2016, and 70% hedged in 2017. These new hedges show up in GAAP with the impact of mark-to-market each quarter.

我們以平均匯率 1 美元兌 99 日圓，建立了 2015 至 2017 年的避險。目前在經濟上，2015 年的獲利已 100% 對日圓避險，2016 年約避險 80%，2017 年避險 70%。這些新避險在 GAAP 中會以每季按市價評價的影響呈現。

Now, what about our core reporting? With our existing hedges for 2015 to 2017 now at JPY99, we will move to a new constant yen rate of JPY99 to the dollar. This adjustment to core maintains the alignment with the intent of the hedges that limit the economic impact to the yen weakening. We expect to keep this core yen rate over the next three years.

那麼，我們的核心報導呢？由於我們現有的 2015 至 2017 年避險匯率已是 1 美元兌 99 日圓，我們將改用新的固定日圓匯率 1 美元兌 99 日圓。此一核心口徑的調整，能維持與避險意圖的一致性，也就是限制日圓走弱帶來的經濟影響。我們預期未來三年將維持此核心日圓匯率。

About 75% of the analysts covering us have already modeled 2015 at this yen exchange rate of JPY99. Going forward, we'll talk about our core results at the new constant yen rate of JPY99. Now comparisons to 2014 will also be done at JPY99.

約有 75% 覆蓋我們的分析師，已經以 1 美元兌 99 日圓的匯率建模 2015 年。往後我們將以新的固定日圓匯率 1 美元兌 99 日圓來討論核心結果。此外，與 2014 年的比較也將以 1 美元兌 99 日圓為基礎。

We will be providing you our 2014 results recast with the exchange rate so you can update your models and compare apples to apples. We will be releasing this recast 2014 and also 2013 numbers later this morning in an 8-K filing.

我們將提供以該匯率重編（recast）的 2014 年結果，讓您可以更新模型並進行同口徑比較。我們將在今天稍晚透過提交 8-K 文件，發布重編後的 2014 年以及 2013 年數據。

Now I'll be repeating some of this in our outlook section, but I wanted to remind investors that we've been giving guidance on the value of JPY1 move in our NPAT for several years. Our most recent guidance has been that at JPY1 move impacts NPAT by $25 million for the year. This simple example is accurate and easy to use.

接下來我會在展望部分重申其中一些內容，但我想提醒投資人，我們多年來一直提供「日圓每變動 1 日圓」對我們 NPAT 的影響指引。我們最新的指引是：日圓每變動 1 日圓，全年對 NPAT 的影響為 2,500 萬美元。這個簡單例子準確且易於使用。

However, when we recast every line in our P&L, the calculations impact certain line items differently. Clearly, our sales are affected by the end change. However, not all our cost moves with yen exchange rates.

然而，當我們將損益表（P&L）的每一個科目都重編時，計算會對某些科目產生不同影響。顯然，我們的銷售額會受到匯率變動的影響。但並非所有成本都會隨日圓匯率變動。

We have some yen based costs, but also have manufacturing costs in other currencies that do not move. As a result, in our recast our gross margin percent is effected. Impact on Display gross margin is 2 percentage points. The impact on the total Company gross margin is 1%.

我們有部分以日圓計價的成本，但也有以其他貨幣計價、且不會隨之變動的製造成本。因此，在我們的重編結果中，毛利率百分比會受到影響。對顯示器業務毛利率的影響為 2 個百分點。對全公司毛利率的影響為 1%。

I want to be clear, we have always had the impact of this change on gross margin embedded in our simple metric of JPY1 move equals $25 million. However, it's important that you make your models reflect the line item changes accurately.

我想說清楚，我們一直都已將毛利率變動的影響，內含在「日圓每變動 1 日圓等於 2,500 萬美元」這個簡單指標中。不過，重要的是您在建模時要讓各科目的變動能被準確反映。

Our Investor Relations group will be ready to explain the recasting from JPY93 to JPY99. There are nuances that are important to understand.

我們的投資人關係團隊將隨時準備說明從 1 美元兌 93 日圓重編至 1 美元兌 99 日圓的方式。其中有一些細微差異需要理解。

With that, I'd like to turn to Display's outlook. We feel very good about the glass market as we enter 2015. Supply chain inventory levels remain healthy. Glass supply is tight relative to demand, and we expect another year of glass volume growth at retail.

接下來，我想轉到顯示器業務的展望。在進入 2015 年之際，我們對玻璃市場感到非常樂觀。供應鏈庫存水位仍然健康。相對於需求，玻璃供給偏緊，我們預期零售端玻璃出貨量將再成長一年。

We finalized contracts with our customers for substantially all our volume in 2015, which we believe is reflection of our customers' desire to lock in glass supply due to the strong market and relatively tight supply-demand situation. We expect our share to be stable in quarter one and throughout the year.

我們已與客戶敲定 2015 年幾乎所有出貨量的合約；我們認為這反映了在市場強勁且供需相對吃緊的情況下，客戶希望鎖定玻璃供應。我們預期第一季以及全年市占率將保持穩定。

Now, for the end market in 2015, we believe TV retail demand is strong. Our preliminary forecast for 2015 is for good growth of LCD glass at retail and our glass demand, driven primarily by TV unit and average screen size growth.

至於 2015 年的終端市場，我們認為電視零售需求強勁。我們對 2015 年的初步預測是：零售端 LCD 玻璃將有良好成長，我們的玻璃需求也將成長，主要由電視出貨量與平均螢幕尺寸成長所帶動。

We believe the glass market at retail could be up in the high-single digits in 2015. We expect ultrahigh definition sales to at least double to approximately 25 million units in 2015. Of course, we're going to be saying a lot more about our outlook on February 6 at our Investor Relations event in New York City.

我們認為 2015 年零售端的玻璃市場可能會有高個位數的成長。我們預期 2015 年超高畫質的銷售至少將倍增至約 2,500 萬台。當然，我們會在 2 月 6 日於紐約市舉辦的投資人關係活動上，進一步說明我們的展望。

As we near the end of January, we expect our glass volume and outlook in quarter one to be flat to down slightly sequentially. We see quarter one LCD glass market declining sequentially, reflecting normal seasonality, and of course fewer shipping days in February.

隨著我們接近 1 月底，我們預期第一季的玻璃出貨量與展望將較前一季持平至小幅下滑。我們看到第一季 LCD 玻璃市場將較前一季下滑，反映正常的季節性，當然也包括 2 月出貨天數較少。

Recall Q2 is the slowest retail season, so the supply chain should do some moderation in late Q1 to manage inventory. You should note the LCD glass market in our volumes in Q1 are up year-over-year reflecting the larger market.

請記得第二季是零售最淡的季節，因此供應鏈應會在第一季末進行一些調節以管理庫存。你們應注意到，我們第一季的 LCD 玻璃出貨量所對應的市場規模較去年同期成長，反映市場變大。

Now we expect price declines in Q1 to again be moderate and similar to Q4. We are especially delighted to not have a repeat of last year's Q1 pricing event.

目前我們預期第一季的價格下滑幅度將再次溫和，並與第四季相近。我們尤其高興不會重演去年第一季的定價事件。

We remain optimistic glass industry can continue to moderate quarterly price declines for the full year for several reasons. First, retail demand expects to grow, helping to maintain a healthy supply chain inventory.

我們仍對玻璃產業在全年能持續放緩每季價格下滑抱持樂觀，原因有幾點。第一，零售需求預期將成長，有助於維持供應鏈健康的庫存水位。

Second, panel makers are profitable, and they are getting the benefit of the weaker yen. Third, glass supply's tight to demand, and fourth, the operating margins of our competitors are such they can't afford large price declines if they hope to remain profitable.

第二，面板廠目前有獲利，且受惠於日圓走弱。第三，玻璃供給相對需求偏緊；第四，我們競爭對手的營業利益率使其若想維持獲利，無法承受大幅降價。

As for our glass capacity, I want to reiterate that we intend to diligently manage our capacity to supply. Customer agreements stabilize our share of [health] manufacturing organization managed capacity to demand, and we look forward to renewed agreements maintaining that stability in 2015.

至於我們的玻璃產能，我想重申我們打算審慎管理產能以配合供應。客戶協議可穩定我們在（由製造組織管理的）產能相對需求中的市占，我們也期待在 2015 年續約以維持這種穩定性。

Turning to the Optical Communication segment, we expect Q1 sales to be up more than 10% versus Q1 of last year. Enterprise and fiber home sales are up in North America, and of course adding to Optical Communications' organic growth will be sales from the recent acquisition of TR Manufacturing.

談到光學通訊事業群，我們預期第一季銷售額將較去年第一季成長超過 10%。北美的企業與光纖到府（FTTH）銷售成長，當然，近期收購 TR Manufacturing 所帶來的銷售也將挹注光學通訊的有機成長。

In Environmental, we expect Q1 sales to be consistent year-over-year. Volume is up versus last year in most products, but it's offset by now the much weaker euro versus last year. Without this FX impact, Environmental sales would have been up approximately 5%.

在環境科技事業方面，我們預期第一季銷售額將與去年同期一致。多數產品的出貨量較去年增加，但被目前相較去年大幅走弱的歐元所抵銷。若不考慮此匯率影響，環境科技事業的銷售額原本約可成長 5%。

We expect Specialty material sales to be up approximately 10% year-over-year in Q1. The retail market for touch devices is strong in Q4, and our Gorilla Glass shipments in quarter one are up, driven by this retail demand.

我們預期第一季特殊材料銷售額將較去年同期成長約 10%。第四季觸控裝置的零售市場強勁，而在此零售需求帶動下，我們第一季的 Gorilla Glass 出貨量增加。

Specialty sales are down sequentially, due to normal seasonality of Gorilla Glass. For the full year, we expect our volume growth of Gorilla Glass to be in line with the IT handheld market, and price declines to be more moderate than in 2014 due to Gorilla Glass 4.

特殊材料銷售額較前一季下滑，原因是 Gorilla Glass 的正常季節性。就全年而言，我們預期 Gorilla Glass 的出貨量成長將與 IT 手持裝置市場一致，而在 Gorilla Glass 4 的帶動下，價格下滑幅度將較 2014 年更為溫和。

In Life Sciences we expect sales to be consistent with last year's first quarter. Our Life Sciences business is now also being impacted by the weaker euro. We expect sales would have been up low-single digits without the FX impact. Equity earnings from Dow Corning are expected to be approximately $69 million, up 10% year-over-year driven by polysilicon sales.

在生命科學事業方面，我們預期銷售額將與去年第一季一致。我們的生命科學業務目前也受到歐元走弱的影響。若不考慮匯率影響，我們預期銷售額原本可有低個位數成長。來自 Dow Corning 的權益法收益預期約為 6,900 萬美元，年增 10%，主要由多晶矽銷售帶動。

Now continuing on with the rest of our quarter one forecast, we expect gross margin to be approximately 43% as compares to 43% in Q1 last year, with a yen to us dollar exchange rate at JPY99. The move to constant yen rate of JPY99 does affect our LCD glass reporting as I outlined earlier. As a reminder, we've given the guidance of JPY1 move changed NPAT for a long time, embedded within that metric as this nuance on gross margin.

接著談第一季其餘預測：我們預期毛利率約為 43%，與去年第一季的 43% 相比，並假設日圓兌美元匯率為 JPY99。如我先前所述，改採固定日圓匯率 JPY99 會影響我們 LCD 玻璃的報導方式。提醒各位，我們長期以來提供的指引是日圓每變動 JPY1 會改變 NPAT，而毛利率的這項細節也包含在該指標之中。

SG&A and R&D spending will be 13% and 8% of sales, respectively, and consistent with 2014. Other income and other expense is expected to be a net expense of $40 million in Q1.

SG&A 與研發支出將分別占銷售額的 13% 與 8%，並與 2014 年一致。其他收入與其他費用預期在第一季為淨費用 4,000 萬美元。

Our effective tax rate for 2015 should be around 18%. Projected rate is higher than 2014, driven by the regional mix of sales and assumes that no renewal of the tax extenders bill. We expect full-year capital spending to be $1.3 billion, maybe $1.4 billion.

我們 2015 年的有效稅率應約為 18%。該預估稅率高於 2014 年，主要由銷售的區域組合所驅動，並假設稅務延長法案（tax extenders bill）不會續期。我們預期全年資本支出為 13 億美元，可能到 14 億美元。

When you sum up our outlook for Q1, you see we expect another quarter of year-over-year earnings growth. We will be providing the recast of Q1 2014 in a few minutes for you to do your year-over-year calculation. For those investors who also like to do sequential comparisons, please remember to use the quarter four JPY99 recast.

綜合我們對第一季的展望，你會看到我們預期盈餘將再度年增。我們將在幾分鐘後提供 2014 年第一季的重編數字，方便你們進行年對年計算。對於也喜歡做季對季比較的投資人，請記得使用第四季以 JPY99 重編的數字。

When you're concentrating and sequential comparisons other than the recasting of the yen, please remember that in Q4 we receive the final payment related to the settlement technology dispute doesn't show up again in Q1. Q4 equity earnings from Dow Corning were very large driven by the strong end of year contract fulfillment orders for polysilicon.

在進行季對季比較時，除了日圓重編的影響外，請記得第四季我們收到與技術爭議和解相關的最後一筆款項，第一季不會再出現。第四季來自 Dow Corning 的權益法收益非常高，主要由年底多晶矽合約履約訂單強勁所帶動。

Expect polysilicon sales to be down seasonally in Q1, and Dow Corning's tax rate will rebound to be higher in 2015. Corning's effective tax rate in 2015 will be 1 to 2 points higher than 2014. Please remember the low rate in quarter four is not indicative of the full-year tax rate. Ann and [Steven] are available to help you as you update your models.

預期第一季多晶矽銷售將因季節性而下滑，而 Dow Corning 的稅率在 2015 年將回升至較高水準。Corning 在 2015 年的有效稅率將比 2014 年高 1 到 2 個百分點。請記得第四季的低稅率並不代表全年稅率水準。Ann 和 [Steven] 可協助你們更新模型。

In summary, we're coming off a great quarter and a great year, and we expect that momentum to deliver growth again this quarter. That includes my opening remarks. Ann?

總結來說，我們剛結束一個非常出色的季度與年度，並預期這股動能將在本季再次帶來成長。以上是我的開場發言。Ann？

Thank you, Jim. Greg, we'll now open the lines for questions.

謝謝你，Jim。Greg，我們現在開放提問。

(Operator Instructions)

（接線員指示）

Mehdi Hosseini, SIG.

Mehdi Hosseini，SIG。

Good morning. Thanks for taking my question. Jim, you are talking about in the Display segment glass volumes are beginning to firm up. Can you just elaborate more?

早安。謝謝讓我提問。Jim，你提到顯示事業群的玻璃出貨量開始走穩。你能再多說明一下嗎？

How should we think about the ASP component as volumes are getting firm, especially as your customers are beginning to worry about supply? That's what I heard from you.

當出貨量走穩時，我們該如何看待 ASP（平均售價）的變化，尤其是當你的客戶開始擔心供應時？這是我從你那裡聽到的。

We believe our price declines will be moderate again in Q1. We have most of that done now, and we're delighted by that. We think all the trends in the industry are positive for ASP, and we expect moderate price declines every quarter this year.

我們認為第一季的價格下滑將再次保持溫和。目前大部分已經談妥，我們對此很高興。我們認為產業中的各項趨勢都對 ASP 有利，並預期今年每一季都會是溫和的價格下滑。

Your comment that volumes are beginning to firm up, is that more of a quarterly firming up? Is that for the whole year? How should we think about the timing part of it?

你提到出貨量開始走穩，這比較像是單一季度的走穩嗎？還是指全年？我們該如何看待其發生的時間點？

I don't think I used the word firm up. I believe volumes were very strong actually all of last year. They were stronger than we expected in quarter four, and we think they'll be good in quarter one. If you come to our event, we'll be giving you a lot more detail on full-year guidance for the Display market.

我不認為我用過「走穩」這個詞。我認為其實去年整年出貨量都非常強勁。第四季比我們預期更強，而我們認為第一季也會不錯。如果你來參加我們的活動，我們會提供更多關於顯示市場全年指引的細節。

Got it. Then one follow-up on the Specialty Materials, if I were to exclude the receivable write-off, how did margins trend? How should we think about the margin trend into 2015?

了解。那再追問一個關於特殊材料：如果我排除應收帳款沖銷，毛利率走勢如何？我們該如何看待 2015 年的毛利率趨勢？

Earnings would have been up in quarter four without the receivable write-off. I think the number was 8%, and in terms of gross margins in Specialty and Gorilla, we expect them to improve this year.

若非應收款沖銷，第四季獲利本來會成長。我認為數字是 8%，而就 Specialty 與 Gorilla 的毛利率而言，我們預期今年會改善。

Okay. Thank you.

好的。謝謝。

Ehud Gelblum, Citigroup.

Ehud Gelblum，花旗集團。

Good morning. Thank you. A couple questions, a quick clarification, the gross margin this quarter was below guidance. Was that due to the write-off?

早安。謝謝。有幾個問題，先快速釐清一下，本季毛利率低於指引。那是因為沖銷嗎？

No. The gross margin, there were three minor items that made it be around at about 1% lower. There's nothing significant there.

不是。毛利率方面，有三個小項目使其大約低了 1%。沒有什麼重大因素。

Okay. You expect it to stay at the 44% level instead of going back up next quarter, so those issues continue? (inaudible) that?

了解。你們預期它會維持在 44% 的水準，而不是下季回升，所以那些問題會持續？(聽不清) 是那樣嗎？

No. As you know, our gross margins are always a mix of the various business, but we expect our gross margin to be 43% with the yen at JPY99.

不是。如你所知，我們的毛利率一向是各項業務組合的結果，但我們預期在日圓 JPY99 的情境下，毛利率為 43%。

I'll do some more math to get into that. On Gorilla, can you give us an update as to what's happening with notebooks and laptops? Are you seeing any more penetration there, or is still primarily the tablet and smartphone market?

我會再算一下來理解。關於 Gorilla，你能更新一下筆記型電腦與筆電的情況嗎？你們是否看到更多滲透，還是仍主要在平板與智慧型手機市場？

On Gorilla Glass 4, it sounds like you're getting a premium on it versus Gorilla Glass 3. Where does the price point sit, versus where Gorilla Glass was prior to the large cut at the beginning of 2014? Is it around the same level, or is it still below?

關於 Gorilla Glass 4，聽起來你們相較 Gorilla Glass 3 能取得溢價。其價格點相較於 2014 年初大幅降價之前的 Gorilla Glass 水準如何？大約在同一水準，還是仍較低？

I don't actually have that comparison in my head where was before the cut. We'll think about how much we're going to disclose on that.

我腦中其實沒有降價前的比較。我們會再想想要在這方面揭露多少。

In terms of the touch on notebook market, actually there was some progress this past year versus 2013. We expect some continued progress as the share of it grows as part of the notebook market, and we actually have improved our own share of that in 2014. We expect to improve it again in 2015. It is just not a fast-growing change.

就筆電市場的觸控而言，實際上去年相較 2013 年是有一些進展。隨著其在筆電市場中的占比提升，我們預期會持續有些進展，而且我們在 2014 年也提升了自身的市占。我們預期 2015 年會再提升。只是這不是一個快速成長的變化。

Okay. On the hedges, in a prior conference call, I believe you may have said that you did have some hedges at JPY93 that extended into 2015. A, is that correct, and B, if that's the case, I think you said at on point that around two-thirds of our 2015 may have been hedged at JPY93. How do you handle the JPY93 hedges when you're showing core earnings at JPY99? Do you show part of the gain reflected into core revenue, and the rest still sits in other income?

好的。關於避險，在先前一次電話會議中，我記得你們可能提到有一些在 JPY93 的避險延伸到 2015 年。A，這是否正確？B，如果是，我想你們曾在某個時點說過 2015 年約有三分之二可能以 JPY93 避險。當你們以 JPY99 顯示核心獲利時，如何處理 JPY93 的避險？你們會把部分收益反映在核心營收中，其餘仍放在其他收入嗎？

(inaudible) correct. We never said we had two-thirds of 2015 at JPY93. We had a small proportion of 2015 at JPY93, and what we'd done is chosen from an accounting point of view is to select a blended rate of JPY99 that carries over the three years. In any given quarter, the rate may be slightly different, but we are allowed to choose a blended rate, and we've done that for the three years, but we never had that higher proportion of 2015 hedged at JPY93.

(聽不清) 沒錯。我們從未說過 2015 年有三分之二以 JPY93 避險。我們只有一小部分 2015 年以 JPY93 避險；而我們在會計處理上選擇的是採用跨三年的加權平均匯率 JPY99。在任何一個季度，匯率可能會略有不同，但我們可以選擇一個加權平均匯率，我們已對這三年這麼做；但我們從未有那麼高比例的 2015 年以 JPY93 避險。

I'll have to find that reference again. Again, in any given quarter, you'll take the JPY99 up to the current spot. You'll reflect that revenue, but any gains that would have come from a different actual number, let's say you're hedged at JPY97 for a given quarter, the difference between JPY97 and JPY99 still shows up in other income? Is that the right way to look at it?

我得再去找那個引用。再確認一下，在任何一個季度，你們會以 JPY99 對應到當期即期匯率。你們會反映那樣的營收，但若實際數字不同所產生的收益，例如某一季你們以 JPY97 避險，JPY97 與 JPY99 的差額仍會出現在其他收入？這樣理解對嗎？

The movement in our hedge rate around this blended rate is very, very tiny. In our core reporting numbers, you see it's all done at the constant JPY99. In our GAAP, you will see the settlement of the hedges in the current quarter, and then the mark-to-market for the entire portfolio hedges.

我們的避險匯率圍繞這個加權平均匯率的變動非常非常小。在我們的核心揭露數字中，你看到的全部都是以固定的 JPY99 計算。在我們的 GAAP 報表中，你會看到當季避險的結算，以及整體避險投資組合的按市價評價（mark-to-market）。

Helpful. Finally, can you give an update on what [DAS] is doing in the optical department? I didn't see any optical side. I didn't hear that was necessarily a driver but it had been in the past. Is it still as strong as it had been?

很有幫助。最後，能否更新一下 [DAS] 在光學部門的進展？我沒有看到任何光學方面的內容。我也沒聽到它必然是驅動因素，但過去曾是。它是否仍像以前一樣強勁？

It's never been a big driver. It's a growing business, and you're going to more about it at our IR day in a week.

它從來都不是很大的驅動因素。這是一個成長中的業務，你們會在一週後的 IR 日聽到更多。

Okay. Thanks, Jim.

好的。謝謝，Jim。

Wamsi Mohan, Bank of America Merrill Lynch.

Wamsi Mohan，美國銀行美林。

Yes, thank you. Good morning, Jim. We've not seen your 8-K yet, but directionally can you help us think about where the 2014 Q1 gross margin was on a JPY99 basis so we know operationally if the gross margin is flat up or down year-on-year? I have a follow-up.

是的，謝謝。早安，Jim。我們還沒看到你們的 8-K，但就方向性而言，你能否協助我們理解 2014 年第一季在 JPY99 基礎下的毛利率大概是多少，讓我們能從營運角度判斷毛利率同比是持平、上升或下降？我還有一個追問。

Directionally, it's 43%.

就方向性而言，是 43%。

It's flat year-on-year. Okay, thanks. Then in equity earnings were there any take-or-pay enforcement that helped in the quarter? How should we think about equity earnings in 2015, again if you think it should be flat up or down in 2015? Thanks.

同比持平。好的，謝謝。那麼在權益法收益方面，本季是否有任何 take-or-pay（照付不議）條款的執行有幫助？我們應如何看待 2015 年的權益法收益——同樣地，你認為 2015 年應該是持平、上升或下降？謝謝。

The take-or-pay contracts are, there was no enforcement action in quarter four meaning that no one stopped taking and didn't fulfill their contract, and therefore we booked the overall revenue that was outstanding on the contract. What you saw was primarily the impact of people, in order to keep the contracts current, they have to buy a certain amount within a calendar year. What we're seeing is many people delay that until the fourth quarter.

關於 take-or-pay 合約，第四季沒有任何執行行動，意思是沒有人停止提貨且未履行合約，因此我們並未因合約未履行而在第四季認列合約中尚未提貨的整體收入。你看到的主要是：為了讓合約維持有效，客戶必須在一個曆年內購買一定數量。我們看到很多人把這件事延後到第四季才做。

You may recall actually in the fourth quarter of 2013, we had this sudden rush. We actually couldn't fulfill it all, and some spilled into quarter one of 2014. We prepared for that this year, but people are living up to their contracts, so there's no enforcement of a take-or-pay where we recognized the revenue in quarter four.

你可能還記得，2013 年第四季我們確實出現過一波突然的搶購。我們其實無法全部交付，有一部分延到 2014 年第一季。今年我們為此做了準備，但大家都有履行合約，所以並沒有 take-or-pay 的執行、也就沒有在第四季因此認列收入。

Do you expect overall equity earnings to be flat up or down in 2015?

你預期 2015 年整體權益法收益會持平、上升或下降？

I'll give some more comment on equity earnings when we get to the IR day.

等我們到 IR 日時，我會再對權益法收益多做一些評論。

Okay, thanks, Jim. Last question for me is on from a gross margin perspective you should be seeing the benefit of CPM and the increased synergies flow-through on a constant JPY99 basis, so as we look through the trend in 2014, shouldn't we expect the 2015 trend in gross margins to continue to trend up through the course of year?

好的，謝謝，Jim。我最後一個問題是，從毛利率角度，在固定 JPY99 基礎下，你們應該會看到 CPM 與協同效益提升所帶來的好處逐步反映，因此當我們觀察 2014 年的趨勢時，是否應預期 2015 年毛利率趨勢會在全年過程中持續走升？

Assuming that we get moderate price declines every quarter which is what our expectation is, we expect excellent cost reduction in that will contribute to improved gross margins.

假設我們每季都有溫和的價格下滑——這是我們的預期——我們預期非常出色的成本降低將有助於毛利率改善。

Thanks, Jim.

謝謝，Jim。

Mark Sue, RBC Capital Markets.

Mark Sue，RBC 資本市場。

Thank you. Jim, you seem to be recognizing the benefit of the price strategy change made a few years ago with stable share and moderate price declines. Structurally, the thought before was that your primary competitors were focused less on margins than Corning is. That seems to all have changed. Are we at a point where we can predict industry profit growth considering all of the players are focused on market share at this point?

謝謝。Jim，你似乎正在認可幾年前所做的價格策略調整所帶來的好處，也就是在市占率穩定的情況下，價格溫和下滑。從結構面來看，先前的看法是你們的主要競爭對手相較於康寧，對毛利的重視程度較低。看起來這一切都改變了。在目前所有業者都把重點放在市占率的情況下，我們是否已經到了可以預測產業獲利成長的階段？

I can't comment specifically on what our competition is going to do. I can tell you that what we certainly hope that the industry has moderate price declines, but I cannot predict what they are going to do.

我無法具體評論競爭對手將會怎麼做。我可以告訴你的是，我們當然希望產業的價格下滑是溫和的，但我無法預測他們會怎麼做。

Would you get the sense that everyone has seen the predictability and the benefit of stable declines so that the rationality is likely to prevail, at least on Corning's point of view?

你是否覺得大家都已經看到了穩定下滑所帶來的可預測性與好處，因此理性行為很可能會占上風，至少從康寧的角度來看？

Again, Mark, I can't comment on what our competitors are seeing and doing and what their outlook is. You can read their public statements. I can only comment that for quarter three of last year and quarter four of last year and quarter one of this year, we have seen a moderating price decline. We expect that to continue.

再說一次，Mark，我無法評論競爭對手看到了什麼、正在做什麼，以及他們的展望是什麼。你可以去看他們公開的聲明。我只能評論的是，去年第三季、去年第四季以及今年第一季，我們看到價格下滑趨於緩和。我們預期這種情況會持續。

That's helpful, Jim. Then on oil prices, I know it might be a stretch, but just wondering if you have some data which correlates lower gas prices and higher TV demand, and does actually lower oil prices help with input costs as well for Corning? Just how we should think about the moving dynamics of this large variable for Corning.

這很有幫助，Jim。接著談油價，我知道這可能有點牽強，但想請問你是否有一些數據能把較低的汽油價格與較高的電視需求做關聯？另外，較低的油價是否也能幫助康寧降低投入成本？我們應該如何看待這個對康寧而言很大的變數所帶來的動態變化？

I have no correlation between energy prices and retail in sale of televisions. We clearly believe that consumers are getting in their pocket quite a bit of benefit from the lower gas prices and oil prices, if you use oil. We think that could potentially show up for us in terms of strength in consumer electronics and strength in the car business.

我沒有看到能源價格與電視零售銷售之間的相關性。我們清楚地認為，消費者確實能從較低的汽油價格與油價（如果你以油為基準）中獲得相當多的實質好處。我們認為這可能會以消費性電子的強勁，以及汽車業務的強勁，反映到我們身上。

Relative to our own cost structure, energy is a very small component of our building materials. Actually, as I think you know, in Display our largest component by far is depreciation.

就我們自身的成本結構而言，能源在我們的建材成本中占比非常小。其實，如你所知，在顯示器業務中，我們最大的一項成本遠遠是折舊。

Generally, [we'd be] a natural gas user, not an oil user. The days we've fired our tanks with oil are long gone, but it will be a slight benefit. We do have some hedges, so we don't get the immediate benefit of that.

一般而言，我們主要使用天然氣，而不是用油。用油來加熱我們熔爐的日子早就過去了，但仍會有些微的好處。我們有做一些避險，所以不會立刻享受到這個好處。

That's helpful. Thank you, Jim.

這很有幫助。謝謝你，Jim。

Amitabh Passi, UBS.

UBS 的 Amitabh Passi。

Hi, thank you. Jim, I apologize if you touched on this. You're starting the year at 43% gross margin. I'm just curious from here on out, should we expect gross margin to ebb and flow as volumes in Display and your other segments trend? Are the other underlying structural enhancement that could meaningfully drive gross margin higher?

嗨，謝謝。Jim，如果你已經提過這點我先致歉。你們以 43% 的毛利率開啟今年。我只是好奇，從現在開始，隨著顯示器以及其他事業部的出貨量走勢變化，我們是否應該預期毛利率會有起伏？是否還有其他底層的結構性改善，能夠有意義地推動毛利率走高？

I think that, as always, our gross margin is the add-up of all our various segments. If we get moderate price declines on Display all year long other than Q2 which is generally the lower volume quarter, I think we have the ability to slightly improve Displays' gross margins with a combination of cost reduction and moderate price declines.

我認為一如往常，我們的毛利率是各個事業部加總的結果。如果顯示器全年都維持溫和的價格下滑（除了通常出貨量較低的第二季），我認為我們有能力透過成本降低與溫和的價格下滑相結合，讓顯示器的毛利率小幅改善。

As I think you know, Gorilla is actually our highest gross margin product. If there is a strong market growth of phones and tablets and it flows to us, that will help us from a mix point of view.

如你所知，Gorilla（大猩猩玻璃）其實是我們毛利率最高的產品。如果手機與平板市場強勁成長，且需求傳導到我們，從產品組合的角度將有助於我們。

In telecom, the things that are selling well have slightly higher gross margin compared to the average segments, so that could help. Finally in Environmental, we've made dramatic improvements in manufacturing, so our gross margins are improving there. I think you could see a slight increase in gross margins as we go through the year.

在電信方面，賣得好的產品其毛利率相較於該事業部平均略高，因此也可能帶來幫助。最後在環境科技方面，我們在製造上做了大幅改善，因此那邊的毛利率正在提升。我認為你可能會看到我們在今年進行的過程中，毛利率略有上升。

Okay. That's very helpful. I wanted to clarify on the telecom segment. You talked about the benefit of TR Manufacturing, but I presume in 1Q you'll also include the Samsung fiber optics business that you acquired in December?

好的。這非常有幫助。我想釐清電信事業部的部分。你提到 TR Manufacturing 的效益，但我推測在第一季你們也會納入你們在 12 月收購的三星光纖事業？

The Samsung deal has not closed. That probably won't close until near the end of February or the end of March, so you probably won't see much impact of that until Q2.

與三星的交易尚未完成交割。那可能要到 2 月底或 3 月底附近才會完成，所以你大概要到第二季才會看到比較多的影響。

Got it. One final question, what are your expectations for the adoption of Iris which you unveiled that CES? Theoretically, that gives you a third sheet of glass in TVs, but I'm just how curious how you're thinking about adoption rates?

了解。最後一個問題，你們在 CES 發表的 Iris，你們對其採用情況有何預期？理論上，那會讓電視多出第三片玻璃，但我很好奇你們如何看待採用率？

I'm going to have to ask you to hold that question until our Investor Day on February 6 because Iris will be talked about by both Wendell Weeks and Jim Clappin.

我得請你把這個問題留到 2 月 6 日的投資人日，因為 Iris 會由 Wendell Weeks 與 Jim Clappin 共同說明。

Okay, thank you.

好的，謝謝。

Patrick Newton, Stifel.

Stifel 的 Patrick Newton。

Good morning, Jim. Thank you for taking my question. I guess number one is pertaining to Gorilla Glass. I think you stated that volume growth should be in line with IT handheld and that price declines would be more moderate than 2014 due to Gorilla Glass 4. I would love your view on what Corning's outlook is for IT handheld in 2015.

早安，Jim。謝謝你回答我的問題。我想第一個問題是關於 Gorilla Glass。我記得你提到，出貨量成長應該會與 IT 手持裝置一致，而由於 Gorilla Glass 4，價格下滑會比 2014 年更溫和。我很想聽聽你對康寧在 2015 年 IT 手持裝置市場展望的看法。

Then the price in decline commentary, 2014 was relatively aggressive. Can help us narrow the range a little bit?

另外關於價格下滑的評論，2014 年相對比較激進。你能否幫我們把區間再縮小一些？

I'm not going to give specific numbers on price, but the reduction for the full-year 2015 should be quite a bit lower than what it was in 2014.

我不會提供價格的具體數字，但 2015 全年的降幅應該會比 2014 年低很多。

In terms of market growth, I think we have handheld square feet growing 15%. We're thinking media tablets could grow in the upper-single digits.

就市場成長而言，我們認為手持裝置的平方英尺需求成長 15%。我們認為媒體平板可能會有高個位數的成長。

Then of course we will have some growth from touch on notebook, and just a reminder, we hope that all flows to us, but we have to always manage the supply-chain and see how much inventory there is. We do think that those are the kind of growth rates we'll see at retail.

然後當然，筆電觸控也會帶來一些成長；也提醒一下，我們希望這些需求都能傳導到我們，但我們必須一向管理供應鏈並觀察庫存水位。我們確實認為這些會是零售端可見的成長率。

One more from me is you seem pretty confident on Display demand for the industry in 2015, so I want to focus on industry capacity. I know you're not going to talk about competitor plans, but there have been some public announcements about new plan that will be operational exiting 2015. As we look at the industry, do you believe that new capacity additions in areas like China are going to be matched by reductions in other geographies which is similar to what we saw the industry do in 2014, or do you think that the situation with tighter capacity, healthy panel prices, growth in large TVs could result in industry actually adding in net capacity in 2015?

我還有一個問題：你對 2015 年產業的顯示器需求似乎相當有信心，因此我想把焦點放在產業產能。我知道你不會談競爭對手的計畫，但市場上確實有一些公開宣布的新產線，預計在 2015 年底前後投入運作。從產業角度來看，你認為像中國等地新增的產能，是否會被其他地區的減產所抵銷（類似我們在 2014 年看到產業所做的），還是你認為在產能偏緊、面板價格健康、大尺寸電視成長的情況下，產業在 2015 年其實會出現淨新增產能？

The glass industry is adding capacity because of the continued drive to more thin. As I think you know that for us in Korea, we were quite a bit lower on the amount of [thin], so the glass industry overall it is benefiting from the move to thin. Corning's benefiting from it quite a bit in Korea right now.

玻璃產業正在增加產能，因為持續朝更薄的趨勢推進。如你所知，就我們在韓國而言，我們在（薄化）方面的比重先前低了不少，因此整體玻璃產業正受惠於薄化趨勢。康寧目前在韓國也相當受惠。

In terms of new glass [tank] construction, there has been an announcement by one of our competitors. I don't think that has much impact on 2015, and they did say they would do the same thing as they did in the past and shut down capacity in Japan. I just have to rely on their public statement, as you do.

就新玻璃（熔爐）建置而言，我們的一位競爭對手已經做了公告。我不認為那對 2015 年有太大影響，而且他們也表示會像過去一樣在日本關閉產能。我只能像你一樣，依據他們的公開聲明來判斷。

I don't think you're seeing any surge of glass capacity coming on. I would say the industry continues to manage their [tanks] in an appropriate manner. As an example, we have tanks that remain cold that we're not lighting up.

我不認為你會看到玻璃產能有任何激增的跡象。我會說產業仍在以適當的方式管理他們的[熔窯]。舉例來說，我們有一些熔窯仍維持冷態，我們沒有點火啟用。

Great. Thank you.

很好。謝謝。

Rod Hall, JPMorgan.

Rod Hall，摩根大通。

Yes, thanks for taking my question, guys. I guess I've got a couple. One, Jim, I wonder if you can comment a little bit on UHD 4K price elasticity. I know your comments in Q3 were that you'd seen a little bit more elasticity at that point anyway than you thought.

是的，謝謝讓我提問，各位。我想我有幾個問題。第一個，Jim，我想請你稍微評論一下UHD 4K的價格彈性。我知道你在第三季的評論是，你當時看到的彈性比你原先預期的還要大一些。

I think you've made positive comments on through the quarter, but I just wanted to know what you think is happening with price elasticity there, and whether this 1.5 times price ratio between UHD and HD still holds? Or do you think it's a higher ratio than that where we see demand acceleration?

我想你在本季一路都有一些正面的評論，但我只是想了解你認為那邊的價格彈性正在發生什麼變化，以及UHD與HD之間1.5倍的價格比是否仍然成立？或者你認為需要更高的比率，需求才會加速？

Rod, it's probably a little premature because I don't have final numbers for December, but directionally I continue to support what you said. I think that we felt, first of all, prices came down more than we originally expected, particularly in large size. Consumers are choosing 4K overwhelmingly, but I just don't have final numbers.

Rod，現在說可能還有點太早，因為我還沒有12月的最終數字，但就方向性而言，我仍然同意你說的。我認為我們感受到的是，首先價格下滑幅度比我們原先預期更大，特別是在大尺寸方面。消費者幾乎一面倒地選擇4K，但我就是還沒有最終數字。

In 10 days, I'd ask you to direct that question at our Display market team which will be in New York. We may have better data there. Just speaking personally, put the CFO spin on it, I think 4K will do better than our official numbers.

再過10天，我會請你把這個問題直接問我們在紐約的顯示器市場團隊。到時我們可能會有更好的數據。就我個人而言，用CFO的角度來說，我認為4K的表現會比我們官方數字更好。

Okay, thanks. I also wanted to clarify you, I think you guys are saying that pricing for TV glass moderates in Q1 further. On our calculations, that puts it as moving toward a 2% quarterly decline rate.

好的，謝謝。我也想釐清一下，我想你們是在說電視玻璃的定價在第一季會進一步趨於溫和。按我們的計算，這意味著季度跌幅正朝著約2%的下降速度移動。

Do think that's the bottom for the decline rate? Or do you believe that we bottom out on a decline rate somewhere in the middle of 2015? I'm just try to get some idea on what the 2015 decline rate might look like in terms of trajectory.

你認為這就是跌幅的底部了嗎？或者你認為跌幅會在2015年年中左右才觸底？我只是想對2015年的跌幅走勢大概會是什麼樣子有個概念。

We haven't given a specific number for Q1. It's again very moderate and continuing the trend we've had.

我們沒有給第一季一個具體數字。它同樣是非常溫和，並延續我們一直以來的趨勢。

I don't think there has to be a bottom on this. We'd love to continue to have price declines edge slightly lower every quarter. Let's see if we can make that happen, but clearly we have high hopes of a low number.

我不認為這一定要有所謂的底部。我們當然希望每一季的價格跌幅都能再略微收斂一些。看看我們能不能讓它發生，但很明顯我們對低數字抱有很高的期待。

Okay. Then I've just one final question. It's on your comments on optical. You talked about North American fiber to the home, [FTTX], deployments.

好的。那我最後一個問題。是關於你對光學業務的評論。你談到北美的光纖到戶[FTTX]部署。

Title 2 regulation seems like it might affect that. I just wonder for you can give us any thoughts you've got in terms of what the FCC regulatory changes might mean for the trajectory of those revenues in 2015, if they mean anything at all?

《第二章》（Title 2）監管看起來可能會影響那個。我想請問你能否分享一些看法：FCC的監管變更對2015年這些營收的走勢可能意味著什麼（如果有任何影響的話）？

I think it would be all speculation on my part because I don't know exactly what the regulations would be and how they would enforce them. I think our policy statement is pretty firm.

我想我這邊任何說法都只能是推測，因為我不清楚具體會是什麼規範，以及他們會如何執行。我認為我們的政策立場相當明確。

We think that the regulation exist today has been very beneficial for the industry, and we think people ought to be very careful about that. As to exactly what it looks like and what our customers are going to do, it would just be pure speculation on my part.

我們認為目前存在的監管對產業非常有利，我們也認為大家應該對此非常謹慎。至於它究竟會長什麼樣子、我們的客戶會怎麼做，我這邊都只能純粹推測。

I do think all of this comes against the obvious trend of bandwidth demand continues to grow very rapidly, driven by video in particular I think everybody has to keep thinking about what consumers want.

但我確實認為，這一切都發生在一個很明顯的趨勢之下：頻寬需求仍在非常快速地成長，尤其是由影音所驅動。我想每個人都必須持續思考消費者想要什麼。

But when you come to New York for our IR day, I urge you to talk to Clark Kinlin and a few of our telecom guys. They might even have a stronger point of view about it.

不過你來紐約參加我們的投資人關係日（IR day）時，我建議你和Clark Kinlin以及我們幾位電信團隊的人聊聊。他們對這件事可能會有更強烈的觀點。

Okay. Great. Thanks a lot, Jim.

好的。很好。非常感謝你，Jim。

Steven Fox, Cross Research.

Steven Fox，Cross Research。

Thanks. Good morning. Circling back on the CPM improvements, you mentioned that again it was greater than you anticipated, $100 million, Jim. Can you talk about what drove that in the quarter and for the year? How much of it was just circumstances around the volume growth?

謝謝。早安。回到CPM改善的部分，你提到這次又比你預期的還要好，Jim，達到1億美元。你能談談本季以及全年是什麼因素驅動的嗎？其中有多少只是與出貨量成長相關的情況因素？

Then what can we expect for this year and what kind of projects at CPM are driving the incremental savings that you can get in 2015? Thanks.

另外，今年我們可以期待什麼？以及在CPM方面，哪些專案在推動你們於2015年可取得的額外節省？謝謝。

Overall for CPM, we had the reduction in cost from reducing the number of people. We had increasing utilization. We had some standardization between what we call our wholly-owned business and CPM in terms of best practices, and then of course as you mentioned, actually volume did help us.

整體來看CPM，我們透過減少人員數量帶來了成本下降。我們提高了產能利用率。我們在所謂的全資事業與CPM之間，針對最佳實務做了一些標準化；然後當然如你所提到的，實際上出貨量也確實幫了我們。

I'd have to say it's more of the same for 2015. I can tell you that Jim Clappin will be giving a presentation. We'll actually unveil a new number for 2015 there. I will give you a tease, and then it'll be better.

我得說2015年大致也是同樣的做法。我可以告訴你，Jim Clappin會做一場簡報。我們會在那裡公布2015年的一個新數字。我先賣個關子：而且會更好。

Great. That's very helpful. Then just a quick follow-up on the optical, how much when you look at 2015 or just in Q1 rather, how much is enterprise of versus carrier growth? Where do you see the better opportunity for the quarter and then for the year? Thanks so much.

太好了。這非常有幫助。那再快速追問一下光學業務：你看2015年，或更具體地說第一季，企業端相對於電信營運商的成長各占多少？你認為本季以及全年哪一塊機會更好？非常感謝。

I just don't have those details with me, Steve, so I'd ask you to ask Clark Kinlin or Ann about it. I just don't have them with.

Steve，我手邊沒有那些細節，所以我會請你去問Clark Kinlin或Ann。我這邊沒有帶著那些資料。

Okay, fair enough. Thanks.

好的，可以理解。謝謝。

Joseph Wolf, Barclays.

Joseph Wolf，巴克萊。

Thank you. Just a couple questions, on the news side, we've seen Japan, some of the large TV assembly guys cutting their capacity significantly. Our take has been that that's helpful for, I guess, the other regions in the world. I'm wondering if you can give us some perspective there, and also if there's any chance that means anything with regard to yen pricing in the panel business going forward?

謝謝你。兩個問題：在新聞面上，我們看到日本一些大型電視組裝廠大幅削減產能。我們的看法是，這對我想是對世界其他地區有所幫助。我想請你給我們一些觀點；另外，這是否有任何可能意味著未來面板業務的日圓計價（yen pricing）會受到影響？

We obviously have seen the reports of cutbacks in Japan. I don't have any information as to whether it has anything to do with the yen, or it may be very customer specific to that panel maker. I really don't have much detail on it.

我們當然也看到了日本減產的報導。我沒有任何資訊能說明這是否與日圓有關，或者這可能非常取決於那家面板廠的特定客戶情況。我對此真的沒有太多細節。

Obviously, for us we continue to think worldwide demand is strong regionally. China has been very good for us, so I think some of those statements attributed that cutback to less demand for China, but overall our Chinese demand has been very strong.

很明顯，對我們而言，我們仍然認為全球各區域的需求都很強。中國對我們表現非常好，所以我想有些說法把那次減產歸因於中國需求較弱，但整體而言我們在中國的需求一直非常強勁。

Okay. Then just in terms of the cash position, can you just review for us how much of that cash is outside of the United States, and in what currency that's denominated in? You're thinking about repatriation versus potential losses on holding things in euro right now?

好的。那就現金部位而言，你能否幫我們回顧一下有多少現金是在美國境外，以及它是以什麼幣別計價？你們在思考匯回（repatriation）與目前持有歐元可能產生的損失之間的取捨嗎？

We will be giving our US cash position in our 10-K which will be filed the second week of February. It has been improving. We don't hold euros, so we're not losing.

我們會在2月第二週提交的10-K中揭露我們的美國現金部位。它一直在改善。我們不持有歐元，所以不會有損失。

Our Treasurer is quite proud of himself this morning for having not been holding euros. We don't have that situation. We do have repatriation plans and strategies we've talked about before. When you see our 10-K, I think you'll be delighted.

我們的財務主管今天早上對自己相當得意，因為他沒有持有歐元。我們沒有那種情況。我們確實有我們先前談過的資金匯回計畫與策略。當你看到我們的 10-K 時，我想你會很滿意。

Excellent. Thank you very much.

太好了。非常感謝。

Simona Jankowski, Goldman Sachs.

Simona Jankowski，高盛。

Hi. Thanks very much. Recognizing that you're going to hold off on most Iris comments until the Analyst Day, I just wanted to clarify if any potential ramp into the back half of year is included or not in the outlook you gave for high single-digit growth for the glass market this year?

嗨。非常感謝。我知道你們會把大部分 Iris 的評論留到分析師日再談，我只是想釐清一下：你們對今年玻璃市場「高個位數成長」的展望中，是否已包含下半年任何可能的爬坡（ramp）？

It was not included.

沒有包含。

Okay. Then, Jim, could you expand a little bit on the three items you referenced that drove the 1 point delta in gross margins versus expectations?

好的。那麼，Jim，你能否再多說一點你提到的三個項目，是哪些因素導致毛利率相較預期出現 1 個百分點的差異？

They really were pretty minor things. I think we made an adjustment to one contract, a sales contract that would have been amortized over three years, and we took it all in one quarter because of the change in terms.

其實都是相當小的事情。我想我們對一份合約做了調整，一份原本會在三年內攤銷的銷售合約，因為條款變更，我們把它全部認列在單一季度。

It was a little bit of a customer mix in one of our businesses for lower gross margin customers. As I said, it was nothing that had any significance. It was not an alarming trend or anything to us.

另外，在我們其中一個業務有一點客戶組合的變化，偏向毛利較低的客戶。如我所說，這些都沒有任何重大意義。對我們而言，這不是令人警覺的趨勢或任何類似情況。

Got you. The first one you referenced, was that in the Display segment in terms of the contractual [pricing] adjustment?

了解。你提到的第一項，是在顯示（Display）事業部、就合約（定價）調整而言嗎？

Yes.

是的。

Okay. Got you. Then last question on Specialty materials where you talked about your expectation of more moderate pricing this year versus last year, is that entirely due to the mix shift of Gorilla Glass 4? Or is that also the case, on a like-for-like basis? Then I just wanted to confirm that you have had your price negotiations for this year, or is that still ahead?

好的。了解。那最後一個問題，關於特殊材料（Specialty Materials），你提到今年的定價預期會比去年更溫和，這完全是因為 Gorilla Glass 4 的產品組合轉移所致嗎？還是說在同品項（like-for-like）的基礎上也是如此？另外我想確認一下，你們今年的價格談判已經完成了嗎，還是仍在進行中？

The majority of the impact is due to the mix shift with Gorilla 4 and the higher price in Gorilla 4. We do hope to have smaller price declines on Gorilla Glass 3. There are still big customers who are buying that.

影響的大部分來自於 Gorilla 4 的組合轉移，以及 Gorilla 4 較高的價格。我們也希望 Gorilla Glass 3 的降價幅度能更小。仍然有大型客戶在購買那一款。

I think we have completed a lot of our Gorilla price negotiations. I don't think we've done them all at this stage.

我想我們已完成許多 Gorilla 的價格談判。但我不認為在這個階段已全部完成。

Terrific. Thank you very much.

太好了。非常感謝。

Operator, we've got time for one more quick question.

接線員，我們還有時間再問一個簡短問題。

Okay. James Faucette, Morgan Stanley.

好的。James Faucette，摩根士丹利。

Thank you very much. I just had one quick follow-up question and a little bit higher level question. As you look at the growth in capacity coming from China, particularly new Chinese entrants into the glass market, and [put] that together with the increase in the demand out of the Chinese OEMs, et cetera, where are you seeing those new glass entrants come into the market? Are they coming in at the low end and not really having much of an impact? Are you starting to run into them on a day-to-day basis?

非常感謝。我有一個簡短的追問，以及一個較高層次的問題。當你們看到來自中國的產能成長，特別是新的中國業者進入玻璃市場，並把這與中國 OEM 等帶動的需求增加放在一起看時，你們看到這些新的玻璃進入者是從哪裡切入市場的？他們是從低階切入、因此實際上影響不大嗎？還是你們已開始在日常業務中遇到他們？

I'm just wondering how you're thinking about from a long term. I'm sure they have ambitions to move up, like where you think you need to meet them, and compete with them directly going forward? Thank you.

我想了解你們從長期角度是怎麼思考的。我相信他們有往上走的企圖心，就像所有做生意的人一樣；那麼你們認為未來需要在哪些方面與他們正面交鋒、直接競爭？謝謝。

Sure. Short-term new entrants have not had much impact on the market place. We've seen them in smaller generations in China and somewhat in Taiwan, but they really have not had much of an impact on the market at all.

當然。短期來看，新進入者對市場的影響不大。我們在中國看到他們出現在較小世代的產品上，在台灣也有一些，但他們確實幾乎沒有對市場造成什麼影響。

They clearly have higher aspirations as do everybody who's in business, and so we recognize over a longer term and I emphasize longer term we know we have to compete with them. Many of these are state-owned enterprises, but in the short to medium horizon, I don't think this is an issue for our Display business and our results.

他們顯然有更高的企圖心，所有在商業領域的人都是如此，因此我們也認知到在更長期——我強調是更長期——我們知道必須與他們競爭。其中許多是國有企業，但在短到中期的時間範圍內，我不認為這會成為我們顯示業務及業績的問題。

Great. Jim, do you have some closing comments?

很好。Jim，你有一些結語要說嗎？

Sure. Thanks, Ann. Just a couple of Investor Relations comments, as I've been mentioning throughout my comments, and hoping you will attend, we have our annual Investor Day in New York City on February 6. It's at a new location. It's again at a Cipriani, but at Cipriani Wall Street, so Downtown.

當然。謝謝你，Ann。我簡單補充幾點投資人關係的事項，正如我在整段發言中一直提到的，也希望你們能出席：我們將於 2 月 6 日在紐約市舉辦年度投資人日。地點是新的場地。同樣是在 Cipriani，但這次是在 Cipriani Wall Street，也就是市中心。

We're going to have numerous hands-on demonstrations at our business exhibits, and we'll be giving you growth expectations for 2015 and talking about a lot of the new products. In addition to our CEO, Wendell Weeks, myself, our three business group leaders will be speaking to you about their plans to continue their sales and earnings growth. It'll be a very informative hands-on event, and I really hope you'll consider attending in person.

我們會在業務展示區安排多項可實際操作的示範，並將提供 2015 年的成長預期，並談論許多新產品。除了我們的執行長 Wendell Weeks、我本人之外，我們三位事業群領導人也會向各位說明他們持續推動營收與獲利成長的計畫。這將是一場資訊豐富、可親身體驗的活動，我非常希望你們能考慮親自出席。

Just to summarize on the call, we finished 2014 with an outstanding quarter and achieve our goal of year-over-year earnings growth in every quarter this past year. We did an outstanding job with the CPM acquisition that's brought the Company and our shareholders numerous benefits, including immediate accretion and excellent free cash flow.

簡要總結本次電話會議：我們以一個非常出色的季度結束 2014 年，並達成我們在去年每一季都實現年對年盈餘成長的目標。我們在 CPM 併購案上表現非常出色，為公司與股東帶來多項效益，包括立即增厚（accretion）以及優異的自由現金流。

We're making great progress on improving manufacturing efficiencies and controlling our costs in our businesses. Ultimately, this all resulted in 24% earnings per share growth last year.

我們在提升製造效率與控管各項業務成本方面取得很大進展。最終，這些成果使得去年每股盈餘成長 24%。

I think very important for investors, we returned significant cash to shareholders when we completed our $2 billion share buyback program last year, and also announcing a $1.5 billion share buyback program for the beginning of this year, and finally, increasing our dividend with a 20% increase that's effective in the first quarter.

我認為對投資人非常重要的是：我們在去年完成 20 億美元的庫藏股回購計畫時，向股東返還了可觀的現金；同時也宣布在今年年初啟動 15 億美元的庫藏股回購計畫；最後，我們也把股利提高 20%，並於第一季生效。

We're coming into 2015 with expectations for growth in sales and even more in earnings. We intend to maintain stable Display earnings with moderate price declines. We're going to diligently manage our glass capacity and continue to reduce costs.

我們進入 2015 年時，預期營收將成長，而盈餘成長幅度更大。我們打算在價格溫和下滑的情況下，維持顯示業務盈餘的穩定。我們將審慎管理玻璃產能，並持續降低成本。

We have prospects we believe for growth in Optical Communications especially Materials, Environmental, and Life Sciences. Stay tuned for more details at our annual Investor meeting. Thank you again for listening. Ann?

我們相信在光學通訊，特別是材料、環境與生命科學方面，具有成長前景。請在我們年度投資人會議上持續關注更多細節。再次感謝各位收聽。Ann？

Thanks, Jim, and thank you all for joining us today. Playback of the call is available beginning at 11AM Eastern today, and will run until 5PM Eastern Tuesday, February 10. To listen, dial 800-475-6701. The access code is 349 651. The audio cast of course is available on the website during that time.

謝謝你，Jim，也謝謝各位今天加入我們。本次電話會議的重播將於今天美東時間上午 11 點開始提供，並持續至 2 月 10 日（週二）美東時間下午 5 點。收聽請撥打 800-475-6701。存取碼為 349 651。當然，在此期間也可於網站上收聽網路音訊直播回放。

Operator, that concludes our call. Please disconnect all lines.

接線員，本次電話會議到此結束。請斷開所有線路。

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

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