康寧 (GLW) 2015 Q4 法說會逐字稿

Welcome to the Corning Incorporated quarter four 2015 earnings results. It is my pleasure to turn the conference over to Ann Nicholson, Division Vice President of Investor Relations. Please go ahead.

歡迎參加康寧公司（Corning Incorporated）2015 年第四季財報結果說明。我很高興將本次電話會議交給投資人關係事業部副總裁 Ann Nicholson。請開始。

Thank you, Lois, and good morning, everyone. Welcome to Corning's fourth quarter conference call. With me today is Wendell Weeks, Chairman and Chief Executive Officer; Tony Tripeny, Senior Vice President and Chief Financial Officer; and Jeff Evenson, Senior Vice President and Chief Strategy Officer.

謝謝你，Lois，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有董事長暨執行長 Wendell Weeks；資深副總裁暨財務長 Tony Tripeny；以及資深副總裁暨策略長 Jeff Evenson。

Before we begin our formal comments, I would like to remind you that today's remarks contain forward-looking statements that fall within the meaning of the Private Securities Litigation Reform Act of 1995. These remarks involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially. These factors are detailed in the Company's 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案》（Private Securities Litigation Reform Act of 1995）所界定之範圍。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, and our results are presented in core performance measures. A reconciliation can be found on our website. We have slides posting live on our website to accompany our formal comments, and they will be available on our website later this morning.

您也應注意，本簡報包含多項非 GAAP 衡量指標，而我們的結果係以核心績效指標呈現。相關調節表可於我們的網站查閱。我們已在網站上同步發布投影片以配合正式發言，並將於今天稍晚在網站上提供。

Now I'll turn the call over to Wendell.

現在我把電話交給 Wendell。

Thank you, Ann. Good morning, everyone.

謝謝你，Ann。各位早安。

As we reported in this morning's press release we met, and in a few places exceeded our expectations in quarter four, and also the consensus. That said, year-over-year results in most of our businesses were impacted by the weak global economy, the stronger dollar versus other currencies, and continued softness in the TV and IT retail markets. We expect these headwinds to continue in quarter one.

如同我們今早新聞稿所述，我們在第四季達成了預期，並在部分領域超越了我們的預期以及市場共識。不過，我們多數事業的年對年表現受到全球經濟疲弱、美元相對其他貨幣走強，以及電視與 IT 零售市場持續疲軟的影響。我們預期這些逆風將在第一季持續。

Despite the macroeconomic challenges we faced in quarter four, we had several major successes executing against the strategy and capital allocation framework that we introduced in October. The framework which describes our leadership priorities for the next four years is simple. We will focus our portfolio, and utilize our financial strength to grow, create significant value, and return cash to our shareholders.

儘管第四季面臨總體經濟挑戰，我們在執行 10 月提出的策略與資本配置架構方面仍取得數項重大成果。該架構描述了未來四年的領導優先事項，內容很簡單。我們將聚焦投資組合，並運用財務實力來成長、創造顯著價值，並回饋現金給股東。

As we told you in October, over the course of the next four years, we expect to generate and deploy more than $20 billion through 2019. We will distribute more than $10 billion to our shareholders, which is by the way, roughly half of our current market cap, and we will invest $10 billion in our growth and to sustain our industry leadership. We are confident this new framework will drive the Company forward, and guide our value creation in 2016 and beyond.

如同我們在 10 月所說，未來四年期間，我們預期至 2019 年將創造並運用超過 200 億美元。我們將向股東分配超過 100 億美元；順帶一提，這約相當於我們目前市值的一半；同時我們將投資 100 億美元用於成長並維持產業領導地位。我們有信心這套新架構將推動公司向前，並引導我們在 2016 年及其後的價值創造。

So let me just take a few minutes to highlight our recent successes under this framework. We generated more than $3 billion in adjusted operating cash flow in 2015, despite significant macroeconomic headwinds. This is good evidence of our ability to generate the cash flow that underpins our capital allocation plan. We're off to a good start on our commitment to return more than $10 billion to our shareholders, with a $1.25 billion accelerated stock repurchase program that we completed last week.

接下來我用幾分鐘重點說明我們在此架構下近期的成果。儘管面臨顯著的總體經濟逆風，我們在 2015 年仍創造了超過 30 億美元的調整後營運現金流。這充分證明我們具備產生現金流的能力，而這正是我們資本配置計畫的基礎。我們已在「回饋股東超過 100 億美元」的承諾上有了良好開端，上週完成了 12.5 億美元的加速庫藏股回購計畫。

We continue to focus our portfolio with the recent announcement of the strategic realignment of our interest in Dow Corning Corporation. As we indicated when we announced the transaction, we are very proud of Dow Corning's success over the last 72 years. However, Dow Corning's silicones business lies outside our three core technologies, four manufacturing and engineering platforms, and five market access platforms. Given Dow's strong synergies with the silicones business, we believe the transaction unlocks the value of Dow Corning for our shareholders.

我們持續聚焦投資組合，近期宣布對我們在 Dow Corning Corporation 的權益進行策略性重整。如同我們在宣布交易時所指出的，我們對 Dow Corning 過去 72 年的成功深感自豪。然而，Dow Corning 的矽酮（silicones）業務不屬於我們三大核心技術、四大製造與工程平台，以及五大市場通路平台的範疇。鑑於 Dow 與矽酮業務之間強大的綜效，我們相信此交易能為股東釋放 Dow Corning 的價值。

When we close this transaction, Corning will exchange it's 50% interest in Dow Corning for 100% of the stock of a newly-formed Dow Corning entity that will become a wholly-owned subsidiary of Corning. The new entity will own approximately 40% interest in Hemlock Semiconductor, and approximately $4.8 billion of cash. We believe that our ownership interest in Hemlock, and the additional $4.8 billion of cash on our balance sheet creates significant value.

在交易完成後，康寧將以其持有 Dow Corning 的 50% 權益，交換新成立之 Dow Corning 實體 100% 的股權，該新實體將成為康寧的全資子公司。新實體將持有 Hemlock Semiconductor 約 40% 的權益，以及約 48 億美元的現金。我們相信，對 Hemlock 的持股權益以及資產負債表上額外的 48 億美元現金，將創造顯著價值。

$4.8 billion is approximately a 30 times multiple on the equity earnings from Dow Corning's silicones business. And it's important to remember that we expect the realignment to be essentially tax-free. This additional cash increases the amount of funds available for deployment from the $22 billion to $26 billion we discussed in October, to $26 billion to $30 billion through 2019. We will provide more details on how we intend to deploy this cash when we close the transaction.

48 億美元約相當於 Dow Corning 矽酮業務股權收益的 30 倍倍數。同時也要記得，我們預期此次重整在稅務上基本可視為免稅。這筆額外現金使得可供運用的資金規模，從我們 10 月討論的 220 億至 260 億美元，提高至 2019 年前的 260 億至 300 億美元。在交易完成時，我們將提供更多關於如何運用這筆現金的細節。

In support of our commitment to utilize our market access platforms and financial strength to grow, we leveraged our competitive advantages, and strengthened customer relationships in display to stabilize returns. First, we established a long-term supply agreement, and a low cash investment in a Gen 10.5 glass manufacturing facility adjacent to BOE. By utilizing other's fundings, we significantly derisked this transaction, and we expect outstanding returns. The investment total is $1.3 billion. Our cash investment, however, is one-fourth of that, at $290 million. And at that level, exceeds our target of obtaining $2 of every $3 from others when we invest in new melting capacity. And second, we obtained favorable pricing for LCD glass in quarter four.

為了支持我們運用市場通路平台與財務實力來成長的承諾，我們發揮競爭優勢，並在顯示器業務中強化客戶關係，以穩定報酬。首先，我們建立了一項長期供應協議，並以低現金投入方式投資一座緊鄰 BOE 的第 10.5 代玻璃製造工廠。透過運用他方資金，我們大幅降低了此交易的風險，並預期可取得優異報酬。總投資額為 13 億美元。然而，我們的現金投資僅為其中四分之一，為 2.9 億美元。在此水準下，亦超越我們在投資新增熔融產能時「每投入 3 美元中有 2 美元由他方提供」的目標。其次，我們在第四季取得了 LCD 玻璃的有利定價。

It is no secret to any of you that the display industry is experiencing significant challenges. The retail market for TV and IT softened in the back half of 2015, and supply chain weeks of inventory grew. Despite these market dynamics, our fourth quarter sequential price declines were the lowest of the year.

各位都很清楚，顯示器產業正面臨重大挑戰。2015 年下半年電視與 IT 的零售市場轉弱，供應鏈的庫存週數也增加。儘管有這些市場動態，我們第四季的季對季價格下滑幅度為全年最低。

Stepping back, and looking at 2015 as a whole, the display industry had it's most challenging year in the last five years, on a number of dimensions. First, it was the lowest end market growth in area terms over the last five years. Second, panel price declines were the highest they have been in five years. And finally, the year ended with the highest level of inventory in the supply chain over the past five years.

回頭看 2015 年整體，顯示器產業在多個面向上，經歷了過去五年中最具挑戰的一年。第一，以面積計算的終端市場成長率為過去五年最低。第二，面板價格下跌幅度為五年來最高。最後，年底供應鏈庫存水位為過去五年最高。

Now, even in this environment, we had the smallest annual price decline for glass in five years. This is important evidence that we are making significant progress on stabilizing our returns in display. And as you will hear in a moment from Tony, that trend continues in quarter one of this year. And finally, evidence continues to build that we will successfully leverage our automotive market access platform to disrupt the 6 billion square foot auto glazing market to drive growth for Corning.

然而，即使在這樣的環境下，我們的玻璃年度價格下滑幅度仍是五年來最小。這是重要證據，顯示我們在穩定顯示器業務報酬方面取得了顯著進展。正如稍後 Tony 將提到的，這一趨勢在今年第一季仍在延續。最後，越來越多證據顯示，我們將成功運用汽車市場通路平台，顛覆 60 億平方英尺的汽車玻璃市場，為康寧帶動成長。

We made two significant announcements. First, in December, we announced that Ford will use Corning Gorilla Glass in the iconic Ford GT. This is the first production vehicle to use Gorilla Glass for multiple glazing applications, including the windshield, rear engine cover, and acoustic separator. It's a great example of leveraging our market access with the world's leading automakers to pursue disruptive opportunities while utilizing our existing fusion assets. This collaboration demonstrates what Corning does best, applying expertise in glass and material science to help industry leaders solve tough challenges, unleash new capabilities, and enhance experiences for their customers.

我們做了兩項重大宣布。第一，在 12 月，我們宣布 Ford 將在經典的 Ford GT 上採用康寧 Gorilla Glass。這是第一款量產車在多項玻璃應用上使用 Gorilla Glass，包括擋風玻璃、後引擎蓋，以及隔音分隔板。這是運用我們與全球領先車廠的市場通路來追求顛覆性機會、同時利用既有 fusion 資產的絕佳例子。此合作展現了康寧最擅長的事：運用玻璃與材料科學專業，協助產業領導者解決艱難挑戰、釋放新能力，並提升其客戶的體驗。

Second, just last week we announced a joint venture with Saint-Gobain Sekurit to develop, manufacture, and sell lightweight automotive glazing solutions. Saint-Gobain is a leading global producer of automotive glazing. Corning will continue to produce and market Gorilla Glass to this JV and other glaziers, retaining 100% ownership of the glass business. This venture allows us to more forward in the value chain beyond glass, to manufacture and sell glazing solutions with a leading producer. This provides a low cost path for us to scale Gorilla Glass glazing solutions across the globe.

第二，就在上週，我們宣布與 Saint-Gobain Sekurit 成立合資企業，共同開發、製造並銷售輕量化汽車玻璃（glazing）解決方案。Saint-Gobain 是全球領先的汽車玻璃製造商。Corning 將持續向該合資企業及其他玻璃加工商生產並行銷 Gorilla Glass，同時保留玻璃業務 100% 的所有權。此合資案使我們得以在價值鏈上更進一步，超越單純玻璃材料，與領先製造商共同製造並銷售玻璃（glazing）解決方案。這為我們提供一條低成本的途徑，將 Gorilla Glass 汽車玻璃（glazing）解決方案擴展至全球。

So to summarize, we are making solid progress, delivering on our new framework. We are generating a strong and sustainable operating cash, unlocking significant value for shareholders, and focusing our portfolio by removing assets outside our core capabilities, leveraging our three core technologies, four manufacturing engineering platforms, and five market access platforms to deliver strong financial performance. And we're returning cash to shareholders.

總結來說，我們正取得紮實進展，並落實我們的新架構。我們正在創造強勁且可持續的營運現金流，為股東釋放顯著價值，並透過剝離核心能力以外的資產來聚焦投資組合；同時運用我們三大核心技術、四個製造工程平台與五個市場進入平台，以實現強勁的財務表現。而且我們正在把現金回饋給股東。

Though we will clearly face economic headwinds in the first half of 2016, our confidence continues to build in our ability to deliver on our commitments to our shareholders.

儘管 2016 年上半年我們顯然將面臨經濟逆風，但我們對於履行對股東承諾的能力，信心持續增強。

Now I'll turn the call over to Tony, who will review our fourth quarter results, and first quarter outlook.

接下來我把電話會議交給 Tony，他將回顧我們第四季業績，以及第一季展望。

Thank you, Wendell, and good morning. Before I get into the details, there are two hot topics with investors where I want to provide an update, LCD pricing and yen hedging after 2017.

謝謝你，Wendell，各位早安。在我進入細節之前，有兩個投資人關注的熱門議題我想更新一下：LCD 定價，以及 2017 年之後的日圓避險。

Starting with LCD glass pricing, I'll spend a few minutes giving you our perspective on the display industry dynamics, and explain why we are increasingly confident that our strategy to stabilize returns will work. Let's start with the end market. To recap 2015, it was a challenging year for the industry, driven by the fall off in demand at retail. TV unit demand was actually down in several regions. Specifically, TV demand in Europe and Latin America was weaker due to the effect of the stronger dollar on retail prices, and continued economic uncertainty.

先從 LCD 玻璃定價談起，我會花幾分鐘分享我們對顯示器產業動態的觀點，並說明為何我們愈來愈有信心，我們用以穩定報酬的策略將會奏效。先從終端市場開始。回顧 2015 年，這對產業而言是充滿挑戰的一年，主要受到零售端需求下滑所驅動。在若干地區，電視出貨量需求實際上呈現下滑。具體而言，歐洲與拉丁美洲的電視需求較弱，原因是美元走強推升零售價格的影響，以及持續的經濟不確定性。

Taken as a whole, worldwide TV unit sell-through was down low single-digits. On an area basis, the unit decline was more than offset by an average screen size growth of more than 1 inch. In addition, IT and mobile demand was weak, driven by a lack of replacement drivers, the strong dollar, and continued economic uncertainty. We estimate the worldwide IT market was down 6% in area in 2015. In total, the glass market at retail was up about [28]% in 2015 as measured in area.

整體而言，全球電視終端銷售（sell-through）量下滑約低個位數百分比。以面積計算，出貨量下滑被平均螢幕尺寸成長超過 1 吋所抵銷。此外，IT 與行動裝置需求疲弱，主因是缺乏換機動能、美元走強，以及持續的經濟不確定性。我們估計 2015 年全球 IT 市場以面積計算下滑 6%。總體而言，以面積衡量，2015 年零售端玻璃市場約成長 [28]%。

As a result of the lower end market demand, supply chain inventory grew. Panel price decline began to accelerate, and panel makers began lowering utilizations in Q3, and lowered them again in Q4. Panel prices fell 30% to 40% for the year, with most sizes approaching cash costs. While inventories decreased in Q4, they are still at a high level.

由於終端市場需求較低，供應鏈庫存增加。面板價格下跌開始加速，面板廠在第三季開始降低稼動率，並在第四季再度下調。全年面板價格下跌 30% 至 40%，多數尺寸已接近現金成本。雖然第四季庫存有所下降，但仍處於高位。

All of that said, coming into 2016, we expect end market demand to recover in units, and for average TV screen size to continue to grow. Specifically, we expect sell-through units to be up low single-digits, and for average screen size to grow at least 1.5 inches. We think demand for IT in units will be consistent with the 2015, and screen sizes will grow slightly.

儘管如此，進入 2016 年，我們預期終端市場需求在出貨量上將回升，且平均電視螢幕尺寸將持續成長。具體而言，我們預期終端銷售量將成長低個位數百分比，平均螢幕尺寸至少成長 1.5 吋。我們認為 IT 需求在出貨量上將與 2015 年一致，而螢幕尺寸將小幅成長。

As you can see on this slide, the biggest contributor to glass area growth is screen size. TV screen size grow annually driven by affordability. As TV prices decline, consumers can buy a bigger TV for the same price. For example, today you can purchase a 50 inch TV for the same price as a 42-inch TV in 2013.

如各位在這張投影片所見，帶動玻璃面積成長的最大貢獻因素是螢幕尺寸。電視螢幕尺寸每年成長，主要由可負擔性所驅動。隨著電視價格下滑，消費者可以用相同的價格買到更大的電視。例如，今天你可以用與 2013 年購買 42 吋電視相同的價格，買到 50 吋電視。

Now for TV units. TV units were down low single-digits last year. History tell us that when you have a year with compressed TV consumption, you typically get a rebound the following year. Other drivers supporting growth in 2016 are, lower panel prices will have a positive effect on TV retail prices and will therefore increase demand, the US dollar appreciation is less likely to continue, and we expect an improved economy in Western Europe.

接著談電視出貨量。去年電視出貨量下滑約低個位數百分比。歷史告訴我們，當某一年電視消費被壓縮時，通常隔年會出現反彈。其他支持 2016 年成長的驅動因素包括：較低的面板價格將對電視零售價格產生正面影響，因而提升需求；美元升值不太可能持續；以及我們預期西歐經濟將改善。

As a result, we expect worldwide TV unit sell-through to be up about 2%. So for the full-year, we expect demand for LCD glass at retail to grow in the high single-digits. We will share more details on our market outlook for LCD in the February -- in February at our Investor meeting.

因此，我們預期全球電視終端銷售量將成長約 2%。所以就全年而言，我們預期零售端 LCD 玻璃需求將以高個位數百分比成長。我們將在二月——在二月的投資人會議上，分享更多 LCD 市場展望的細節。

Now let's turn to the display supply chain, and look how the end market, in terms of glass sell-through interacts with glass demand. On this chart, the green line is end market demand, and the blue line is glass market demand. When the green line is below the blue, panel makers are running at higher utilizations to build inventory to support an upcoming retail season. When it's below, inventory is being depleted by pull-through at retail.

現在讓我們轉向顯示器供應鏈，並看看終端市場（以玻璃終端銷售衡量）如何與玻璃需求互動。在這張圖表中，綠線代表終端市場需求，藍線代表玻璃市場需求。當綠線低於藍線時，面板廠會以較高稼動率運轉，以建立庫存來支援即將到來的零售旺季。當綠線在下方時，庫存會因零售端拉貨而被消化。

You can see in the time frame of Q1 to Q3 of 2015, the glass market was flat because panel makers were maintaining utilizations in anticipation of the retail season, and it resulted in a significant inventory build. Beginning in the third quarter of 2015 for Q1 of 2016, glass market demand is lower as panel maker utilization -- as panel makers lower utilizations in reaction to falling panel prices, and a weaker end market. Panel maker utilizations in the glass market are expected to be down sequentially in Q1, allowing the supply chain to reduce inventory. The combination of a healthier supply chain and end market growth will lead to panel maker utilizations increasing, and our glass volume growing as the year progresses. We expect this to start in the second quarter.

你可以看到在 2015 年第一季到第三季期間，玻璃市場持平，因為面板廠為了迎接零售旺季而維持稼動率，結果造成庫存顯著累積。自 2015 年第三季開始到 2016 年第一季，玻璃市場需求較低，因面板廠在面板價格下跌與終端市場轉弱的情況下調降稼動率。預期第一季玻璃市場中面板廠稼動率將較前一季下滑，使供應鏈得以降低庫存。更健康的供應鏈與終端市場成長的組合，將帶動面板廠稼動率提升，並使我們的玻璃出貨量隨著年度推進而成長。我們預期這將從第二季開始。

Now to sum up the year for glass demand. In Q1, we expect the glass market and our volume to be down mid to high single-digits. The good news is that lower panel maker utilizations will help draw down inventory. We expect glass demand to resume strongly in the second half, and we expect glass demand for the full year to grow in the mid single-digits.

現在總結一下全年玻璃需求。在第一季，我們預期玻璃市場以及我們的出貨量將下滑約中到高個位數百分比。好消息是，較低的面板廠稼動率將有助於去化庫存。我們預期下半年玻璃需求將強勁回升，並預期全年玻璃需求將以中個位數百分比成長。

Now let's turn to the bright spot, glass pricing. Pricing in 2015 was the best in five years. Q4 price declines were less than any other quarter last year, and we expect glass prices in Q1 to decline moderately sequentially.

接下來談亮點：玻璃定價。2015 年的定價是五年來最佳。第四季的價格下滑幅度小於去年任何一季，而我們預期第一季玻璃價格將較前一季溫和下滑。

The price decline in Q1 is typically the highest quarterly decline of every year, because Q1 is when annual supply agreements are finalized. Our moderate Q1 price decline this year equals the best Q1 decline we've seen in five years, despite this very tough environment. We think our display strategy passed a significant test, and that Q1 pricing is a strong indicator that we can maintain favorable pricing going forward, and deliver on stabilizing returns.

第一季的價格下滑通常是每年各季中最大的，因為第一季是年度供應協議定案的時點。在如此艱困的環境下，我們今年第一季溫和的價格下滑幅度，等同於我們五年來所見最佳的第一季下滑表現。我們認為我們的顯示器策略通過了一項重要考驗，而第一季的定價是強烈指標，顯示我們未來能維持有利的定價，並實現穩定報酬的目標。

Now moving to the yen. As a quick refresher, we sell our display glass in yen. We have hedged through 2017 at an average rate of [99]. With the stability our hedging program gives to our display cash flows, investors naturally ask what happens in 2018 and beyond? Our response is that we will consider extending our hedge position, as we gain certainty on our future yen flows, and when the currency market offers an attractive yen/dollar rate opportunity.

現在轉到日圓。快速回顧一下，我們的顯示器玻璃以日圓計價銷售。我們已將避險延伸至2017年，平均匯率為[99]。在我們的避險計畫為顯示業務現金流帶來穩定性的情況下，投資人自然會問：2018年及之後會如何？我們的回應是：隨著我們對未來日圓現金流的確定性提高，且當匯市提供具吸引力的日圓/美元匯率機會時，我們將考慮延長避險部位。

We are happy to announce progress on this front. Late last year, we extended our long-term supply agreements with our two largest customers. We extended our agreement with Samsung and BOE through 2025 and 2028, respectively. This greatly increases our confidence in future yen flows.

我們很高興宣布在這方面取得進展。去年年底，我們與兩大客戶延長了長期供應協議。我們分別將與Samsung及BOE的協議延長至2025年與2028年。這大幅提升了我們對未來日圓現金流的信心。

On the rate front, I am sure you all noted the recent volatility in the currency markets, and the brief strengthening of the yen. We took advantage of this opportunity to add to our hedge position. At this point, we are hedged for approximately 70% of our anticipated yen flow from the time period of 2016 to 2022, at an average rate of [106].

在匯率方面，我相信各位都注意到近期匯市的波動，以及日圓短暫走強。我們把握這個機會，增加了避險部位。目前，我們已就2016年至2022年期間預期日圓現金流約70%完成避險，平均匯率為[106]。

For those investors who were concerned about our yen exposure beyond 2017, this action will greatly mitigate those concerns. Because our capital allocation framework factored in weak yen scenarios, the additional hedges give us -- give upside to our expected operating cash flow in our four-year plan. So while the yen will always be an important topic, we significantly reduced the downside risk, and increased the certainty in our ability to return greater than $10 billion to shareholders over the next four years.

對於那些擔心我們在2017年之後日圓曝險的投資人而言，這項行動將大幅緩解相關疑慮。由於我們的資本配置架構已將日圓走弱情境納入考量，新增的避險將為我們四年計畫中的預期營運現金流帶來上行空間。因此，雖然日圓始終會是重要議題，但我們已顯著降低下行風險，並提高未來四年向股東回饋超過100億美元的能力之確定性。

Now let's get into fourth quarter financials. For the quarter, we met, and a few places exceeded our expectations, and we also beat consensus. As a reminder, these are core results.

接下來我們進入第四季財務表現。本季我們達成目標，且在少數方面超出預期，同時也優於市場共識。提醒一下，這些是核心業績。

Sales in the quarter were $2.4 billion, and higher than consensus. This was down 5% versus last year's strong fourth quarter. Corporate gross margin was 42% as expected. This is consistent with Q3, but lower than last year. Most of our businesses have a relatively high fixed cost structure, therefore the decreased sales lower our gross margin as a percentage of sales versus last year.

本季銷售額為24億美元，高於市場共識。相較去年強勁的第四季，下降5%。公司整體毛利率為42%，符合預期。這與第三季一致，但低於去年。我們多數業務的固定成本結構相對較高，因此銷售下滑使毛利率（占銷售額比重）較去年降低。

S&A and RD&E were down versus last year in absolute dollars. S&A was a bit higher than we expected, due to external fees associated with our external transactions. These expenses are one-time in nature, and we do not expect them to repeat. Our effective tax rate for the quarter was lower than expected. Congress passed the Extenders bill in December, and this reduced our tax expense by approximately $20 million.

S&A與RD&E相較去年在絕對金額上均下降。S&A略高於我們預期，原因是與外部交易相關的外部費用。這些費用屬一次性，我們不預期會再發生。本季有效稅率低於預期。國會於12月通過Extenders法案，使我們的稅費約減少2,000萬美元。

Net income was $429 million and lower than last year. The lower earnings reflect the lower volumes, mainly in display, and the impact of foreign-exchange rates. Additionally, last year we received payment regarding an IP dispute that did not repeat. The EPS was $0.34, and exceeded consensus. For the full-year, our sales and earnings reflected the macroeconomic headwinds in the back half of the year.

淨利為4.29億美元，低於去年。較低的獲利反映出出貨量下降（主要在顯示業務）以及外匯匯率的影響。此外，去年我們曾就一項智慧財產權爭議收到款項，今年未再重複。每股盈餘為0.34美元，且高於市場共識。就全年而言，我們的銷售與獲利反映了下半年宏觀經濟逆風。

Now let's look at detailed segment results, beginning with display technologies. Display performance in Q4 was in line with our guidance. Volume was down slightly, price declines were moderate as expected, and the lowest sequential decline in 2015. Display sales were $903 million, and net income was $234 million. As a reminder, in Q4 last year we received a payment regarding an IP dispute that did not repeat.

現在來看更細部的事業部門結果，先從顯示技術開始。第四季顯示業務表現符合我們的指引。出貨量小幅下降，價格下滑如預期屬溫和，且為2015年最低的季對季降幅。顯示業務銷售額為9.03億美元，淨利為2.34億美元。提醒一下，去年第四季我們曾就一項智慧財產權爭議收到款項，今年未再重複。

As anticipated in the fourth quarter, panel makers again lowered utilizations in response to the softer end market I already mentioned, which resulted in volumes down low single-digits for the glass market. Our volume was down slightly sequentially, a bit better than market declines due to the favorable resolution of a customer dispute leading to recovery of the missed volume at that customer. Sequentially, fourth quarter price declines were moderate as expected, and declined less than in Q3.

如同第四季所預期，面板廠因應我先前提到的終端市場轉弱，再度降低稼動率，導致玻璃市場出貨量呈低個位數下滑。我們的出貨量季對季小幅下降，因客戶爭議獲得有利解決，使該客戶先前缺失的出貨量得以回補，因此表現略優於市場下滑幅度。就季對季而言，第四季價格下滑如預期屬溫和，且降幅小於第三季。

During the quarter, we secured the majority of our 2016 volume under customer agreements, helping us maintain stable share, which in turn enables us to be more efficient in planning, manufacturing, and reducing costs. Display sales were down 8% for the full-year, and net income was down 14%. The reduction in net income is the result of a slower growth of the LCD glass market at retail in 2015 that I already spoke to.

本季我們在客戶協議下鎖定了2016年大部分出貨量，有助於維持穩定市占，進而讓我們在規劃、製造與降成本方面更有效率。顯示業務全年銷售額下降8%，淨利下降14%。淨利下滑是因我先前提到的：2015年LCD玻璃零售市場成長放緩所致。

We had many accomplishments in display in 2015. I already talked about the favorable pricing. We extended long-term supply agreements with two major customers that go to the middle of the next decade. The integration of the CPM continues to go well, and we exceeded our synergy targets. And finally, we reduced costs by more than 10%, and we continued to maintain our significant cost leadership.

我們在2015年的顯示業務取得多項成果。我已談到有利的定價。我們與兩家主要客戶延長了長期供應協議，期限延伸至下一個十年的中期。CPM的整合持續進展順利，且我們超越了協同效益目標。最後，我們將成本降低超過10%，並持續維持顯著的成本領先地位。

Now moving to optical communications which performed better than our guidance. Q4 sales were $736 million and up 9% versus last year, driven by acquisitions and growth in fiber to the home. This was better than expected, driven by stronger carrier network sales.

接著是光纖通訊，表現優於我們的指引。第四季銷售額為7.36億美元，較去年成長9%，主要受併購以及光纖到府（FTTH）成長帶動。表現優於預期，主要因電信營運商網路相關銷售更強勁。

Net income was $47 million in Q4. Net income was down 2% versus last year, which is not what you would expect with sales growth. This is mostly about mix.

第四季淨利為4,700萬美元。淨利較去年下降2%，這與銷售成長的情況不太一致。這主要與產品組合有關。

We had less of our sales in our higher margin data center integrated solutions, and more of our sales in lower margin products, like cable from our newly acquired Korean operation. We also experienced higher cost in our fiber business. We are addressing the cost issue, and we expect overall profitability to improve in 2016.

我們在高毛利的資料中心整合解決方案之銷售占比較低，而在低毛利產品的占比較高，例如來自我們新收購韓國營運的纜線產品。我們在光纖業務也面臨較高成本。我們正在處理成本問題，並預期2016年整體獲利能力將改善。

For the full-year, we are very pleased with optical communications performance which well exceeded our goal of growing more than 2 times the telecom industry CapEx rate. Sales were up 12% to $3 billion, driven by growth in nearly all parts of our business. Sales would have been up 16% without the impact of FX. Net income was up 28%, and significantly more than sales growth. The improved profitability was driven by the additional volume in fiber to the home, and data center solutions, and strong manufacturing performance.

就全年而言，我們對光纖通訊的表現非常滿意，明顯超越我們「成長速度達電信產業資本支出（CapEx）增速2倍以上」的目標。銷售額成長12%至30億美元，幾乎由我們業務各部分的成長所帶動。若不考慮外匯影響，銷售額本可成長16%。淨利成長28%，顯著高於銷售成長。獲利能力提升主要由FTTH與資料中心解決方案的額外出貨量，以及強勁的製造表現所驅動。

In environmental, Q4 performance was also better than expectations. Q4 sales were $254 million, up 2% versus last year. Without the impact of FX, sales would have been up 5%.

在環境科技方面，第四季表現也優於預期。第四季銷售額為2.54億美元，較去年成長2%。若不考慮外匯影響，銷售額本可成長5%。

During the quarter, China implemented a stimulus program for car sales, and that drove demand for our light-duty products higher than expected. Soft demand in China for heavy-duty products continue. Year-over-year profitability was down as expected, and similar to Q3. It was driven mostly by the weaker euro, and lower volume in the heavy-duty China market.

本季中國推出汽車銷售刺激方案，使我們輕型車產品需求高於預期。中國重型車產品需求疲弱的情況仍在持續。年對年獲利能力如預期下滑，且與第三季相近。主要由歐元走弱，以及中國重型車市場出貨量較低所致。

For the full-year, sales were down 4%, and net income was down 12%. Sales would have been up 2% without the impact of FX, and profitability would have been consistent with record 2014 performance. In 2015, we expected growth in the global auto market, and we expected another year of growth in North America and China heavy-duty truck production. We invested capacity to support this growth.

就全年而言，銷售額下降4%，淨利下降12%。若不計外匯（FX）影響，銷售額本可成長2%，獲利能力也將與2014年創紀錄的表現一致。在2015年，我們預期全球汽車市場成長，並預期北美與中國重型卡車產量將再成長一年。我們投資產能以支援這項成長。

We grew as expected in all markets except for China, where heavy-duty truck builds were down 30%. And China's auto growth, while stronger in Q4 was less than expected for the full-year. As we start 2016, we see continued strength in the auto market, but are being impacted in our heavy-duty segment in China, and now in North America which is coming off a two-year peak. As a result, we are incurring costs associated with capacity that is currently underutilized, but is ready and will deliver expanding margins, when market volumes resume. We have taken action on cost which continues through the first half, and we expect gross margin percentages to improve year over year, beginning in the second half of 2016.

除中國以外，我們在所有市場的成長皆符合預期；中國重型卡車產量下降30%。而中國汽車成長雖在第四季較強，但全年仍低於預期。進入2016年，我們看到汽車市場持續強勁，但我們的重型車業務在中國受到影響，而北美也開始受到影響，因其剛結束連續兩年的高峰。因此，我們正承擔與目前產能利用不足相關的成本；但該產能已就緒，當市場量能回升時，將帶來擴大的利潤率。我們已採取成本行動並將延續至上半年，且我們預期自2016年下半年起，毛利率百分比將較去年同期改善。

Moving on to specialty materials, which performed in line with guidance. Gorilla Glass volume was down sequentially and versus a strong Q4 of 2014 as we expected. This reflected the reduction of supply chain builds compared to a very strong build in Q4 of 2014. Sales were $275 million and net income was $44 million. Segment net income was up 40% in Q4, mainly due to improved gross margins in Gorilla versus last year, aided by Gorilla Glass 4 prices, improved cost, and the non-repeat of a one-time unfavorable item last year.

接著談特種材料，表現符合指引。如我們所預期，Gorilla Glass出貨量較前一季下降，且相較於2014年強勁的第四季亦下降。這反映出供應鏈備貨相較於2014年第四季非常強勁的備貨有所減少。銷售額為2.75億美元，淨利為4,400萬美元。該事業部第四季淨利年增40%，主要由於Gorilla相較去年毛利率改善，受惠於Gorilla Glass 4價格、成本改善，以及去年一次性不利項目未再發生。

For the full-year, specialty materials sales were down 8%, driven by lower sales of advanced optics. Sales in advanced optics were down related to the completion of a large aerospace and defense program, softer demand in the semiconductor industry, and the weaker euro. Net income on the other hand was up 11%, driven by Gorilla Glass volume growth, adoption of Gorilla Glass 4, and cost reductions.

就全年而言，特種材料銷售額下降8%，主要受先進光學銷售下滑所致。先進光學銷售下滑與一項大型航太與國防計畫結束、半導體產業需求轉弱，以及歐元走弱有關。另一方面，淨利上升11%，主要由Gorilla Glass出貨量成長、Gorilla Glass 4採用擴大，以及成本降低所帶動。

We are pleased with our Gorilla Glass business. The market demand for cover glass was up approximately 10% in 2015, and we gained share with the big China OEMs and on touch notebooks. Additionally, the successful introduction and adoption of higher-priced Gorilla Glass 4 had a very favorable impact on our profitability.

我們對Gorilla Glass業務感到滿意。2015年蓋板玻璃的市場需求約成長10%，我們在中國大型OEM以及觸控筆電領域提升了市占。此外，較高單價的Gorilla Glass 4成功導入並被採用，對我們的獲利能力帶來非常有利的影響。

In life sciences, Q4 sales were $202 million. Both sales and net income were down year over year, driven by foreign-exchange. For the full-year, sales were down 5% and net income was down 12%, but both would have been up, excluding the impact of foreign-exchange.

在生命科學方面，第四季銷售額為2.02億美元。銷售額與淨利皆較去年同期下降，主要受外匯影響。就全年而言，銷售額下降5%，淨利下降12%；但若排除外匯影響，兩者本可成長。

Q4 gross equity earnings from Dow Corning were $78 million as expected. Hemlock contributed $39 million of the total, up from Q3 driven by customers fulfilling their annual contracts. For the full-year, Dow Corning's equity earnings were $245 million.

第四季來自Dow Corning的權益法投資收益（毛額）如預期為7,800萬美元。其中Hemlock貢獻3,900萬美元，較第三季增加，主要因客戶履行其年度合約。就全年而言，Dow Corning的權益法投資收益為2.45億美元。

Now let's turn to our balance sheet and cash flow. We delivered free cash flow in the quarter of $628 million, and over $1 billion of adjusted operating cash flow. For the full-year, we generated $3.2 billion in adjusted operating cash flow, and spent $1.25 billion on CapEx, and had free cash flow of $1.5 billion. As Wendell indicated, more than $3 billion in adjusted operating cash flow for the full-year really gives us confidence in our ability to deliver our capital allocation plan.

接下來談資產負債表與現金流。本季我們創造自由現金流6.28億美元，並產生超過10億美元的調整後營運現金流。就全年而言，我們產生32億美元的調整後營運現金流，資本支出（CapEx）為12.5億美元，自由現金流為15億美元。如Wendell所指出，全年超過30億美元的調整後營運現金流，確實讓我們對執行資本配置計畫的能力更具信心。

During the quarter, we spent $1.3 billion on share repurchases. This reflects our accelerated stock repurchase program. For the full year, we spent $3.2 billion on repurchases, and lowered outstanding shares by 151 million shares. We ended the year with $4.6 billion of cash, with approximately $1 billion in the US.

本季我們用於庫藏股回購的支出為13億美元。這反映了我們的加速股票回購計畫。就全年而言，我們回購支出為32億美元，並將流通在外股數減少1.51億股。年底我們持有現金46億美元，其中約10億美元在美國。

Now for the outlook. We expect the global economic headwinds to persist in the first quarter and to impact our business, all of our businesses year over year. We expect the first quarter to be the weakest of 2016, and we anticipate growth will recover in subsequent quarters.

接著談展望。我們預期全球經濟逆風將在第一季持續，並對我們的業務（所有事業）造成影響，且相較去年同期皆受衝擊。我們預期第一季將是2016年最疲弱的一季，並預期後續季度成長將回升。

Let's begin by looking at each of our businesses. This morning I will provide our Q1 expectations with some additional color on the full-year. You can expect to hear more about our business outlooks at our upcoming IR day.

我們先從各項業務逐一檢視。今天上午我將提供我們對第一季（Q1）的預期，並補充一些全年展望的細節。在即將到來的投資人關係日（IR day），各位可期待聽到更多關於我們業務展望的內容。

Beginning with display. To repeat what I said earlier in the call, in Q1 we expect the glass market and our volume to be down mid to high single-digits, driven by lower panel maker utilizations that I already mentioned. Once the supply chain returns to normal, we expect panel maker utilizations and our glass volumes to grow. We expect this growth to start in Q2.

先從顯示事業開始。重申我先前在電話會議中所說，第一季我們預期玻璃市場與我們的出貨量將下降中至高個位數百分比，主要由我已提到的面板廠稼動率降低所致。一旦供應鏈回到正常，我們預期面板廠稼動率與我們的玻璃出貨量將成長。我們預期這項成長將自第二季開始。

We expect our LCD glass prices to decline moderately sequentially. Given how our contracts work, we are confident that the price declines will be moderate in the quarter. As we have previously explained, we expect this more favorable pricing environment to continue, and maybe even improve for two primary reasons.

我們預期LCD玻璃價格將較前一季溫和下滑。考量我們合約的運作方式，我們有信心本季的價格下滑將是溫和的。如我們先前所說明，我們預期這種較有利的定價環境將持續，甚至可能改善，主要有兩個原因。

First, the financial situation of our competitors indicate that they cannot continue historical price declines and remain profitable. And second, as we've said before, we believe that glass supply and demand will remain balanced throughout the recent weakening in panel demand. We are keeping capacity offline to match our supply to our demand. Other glass suppliers have said publicly that they have levers to take similar actions.

第一，競爭對手的財務狀況顯示，他們無法在維持獲利的同時，繼續延續過去的歷史性降價幅度。第二，如我們先前所述，我們相信即使近期面板需求轉弱，玻璃供需仍將維持平衡。我們將部分產能維持停線，以使供給與需求相匹配。其他玻璃供應商也曾公開表示，他們有手段採取類似行動。

For these and other reasons, we continue to believe that our quarter- over- quarter price comparisons will be better for us going forward, than they have been overall in the past. So to summarize display, we expect our volume in Q1 to reflect the weaker retail market and lower panel maker utilizations, and we will manage supply to demand. We do not believe that the current economic environment reflects any fundamental change to our longer-term drivers of TV demand, and that the end market will recover in 2016.

基於上述及其他原因，我們仍相信，未來我們的季對季價格比較將比過去整體情況更有利於我們。因此總結顯示事業：我們預期第一季出貨量將反映較疲弱的零售市場與較低的面板廠稼動率，而我們將管理供給以符合需求。我們不認為目前的經濟環境反映出電視需求長期驅動因素有任何根本改變，且終端市場將在2016年復甦。

Moving to optical communications. For the first quarter, we expect sales to be up low to mid single-digits versus last year. For the full-year, we expect our sales to be up mid single-digits, and exceed our goal of at least 2 times the overall industry CapEx growth rate.

接著談光通訊。第一季我們預期銷售額將較去年同期成長低至中個位數百分比。就全年而言，我們預期銷售額將成長中個位數百分比，並超越我們的目標：至少達到整體產業資本支出（CapEx）成長率的2倍。

Turning to environmental, the US heavy-duty truck market is forecasted to be down about 20% in 2016 after a two-year peak, and we also expect China's heavy-duty market to remain weak. This will impact our heavy-duty volume and segment sales in Q1. We expect sales to be down approximately 10% versus last year. We do expect auto production to increase this year, but we do not expect it to offset the lower heavy-duty demand and continued FX drag. So our outlook for the full-year is for environmental sales to be down slightly from 2015.

再來看環境事業。美國重型卡車市場在連續兩年高峰後，預估2016年將下滑約20%，我們也預期中國重型車市場將持續疲弱。這將影響我們第一季的重型車出貨量與事業部銷售額。我們預期銷售額將較去年同期下降約10%。我們確實預期今年汽車產量將增加，但不預期其能抵銷重型車需求下滑與持續的外匯拖累。因此，我們對全年環境事業的展望為：銷售額將較2015年小幅下降。

In specialty materials, we expect Gorilla Glass volume to grow in the high single-digits this year. However, in Q1 segment sales are expected to decline mid teens year over year, due primarily to absence of a ramp for new product launches by mobile device manufacturers like we had in Q1 of 2015. For the full year, we anticipate double-digit sales and net income growth in specialty materials driven by Gorilla Glass.

在特殊材料方面，我們預期今年 Gorilla Glass 的出貨量將以高個位數成長。然而，第一季該事業部門銷售額預計將較去年同期下滑約十幾個百分點，主要原因是行動裝置製造商不像 2015 年第一季那樣有新產品上市帶動的放量爬坡。就全年而言，我們預期在 Gorilla Glass 帶動下，特殊材料的銷售額與淨利將呈現雙位數成長。

In life sciences, we expect Q1 sales to be up low single-digits versus last year, with underlying growth offset by the weaker euro. For the full-year, we expect to grow sales faster than the market, which is expected to be up low single-digits.

在生命科學方面，我們預期第一季銷售額將較去年成長低個位數，基本面成長被歐元走弱所抵銷。就全年而言，我們預期銷售成長將快於市場；市場預計為低個位數成長。

Continuing with the rest of our Q1 forecast. We expect gross margin to be approximately 41%. This is a 1 point decline sequentially, due to the expected lower display and lower Gorilla Glass volume. We expect gross margin to improve with volumes in our businesses, starting in the second quarter.

接著說明我們第一季預測的其餘部分。我們預期毛利率約為 41%。這較前一季下滑 1 個百分點，原因是預期顯示器與 Gorilla Glass 出貨量較低。我們預期自第二季起，隨著各事業的出貨量提升，毛利率將改善。

SG&A and RD&E spending will be approximately 14% and 8% of sales, respectively. We expect other income other expense to be a net expense of approximately $50 million. We expect Q1 equity earnings from Dow Corning to be approximately $45 million. This is down from Q4, where polysilicon customers met annual contract obligations.

SG&A 與 RD&E 支出分別約占銷售額的 14% 與 8%。我們預期其他收入／其他費用合計將為約 5,000 萬美元的淨費用。我們預期第一季來自 Dow Corning 的權益法收益約為 4,500 萬美元。這較第四季下降，因為第四季多晶矽客戶履行了年度合約義務。

For the full-year, we expect slight growth in both silicones and polysilicone sales. We expect effective tax rate for 2016 to be in the 16% to 17% range. That concludes our outlook for the first quarter.

就全年而言，我們預期矽酮與多晶矽的銷售額都將小幅成長。我們預期 2016 年有效稅率將落在 16% 至 17% 的區間。以上為我們對第一季的展望。

Now I will hand the call back to Wendell to summarize, before we go to Q&A.

現在在進入問答之前，我把電話交回給 Wendell 做總結。

Thank you, Tony. Well, no surprise, the global economy is impacting our Company. Nonetheless, we continue to make solid progress on many critical fronts. Despite the worst display industry environment in five years, glass price declines are the smallest they have been in five years. This provides us a good foundation for stabilizing returns of this business.

謝謝你，Tony。嗯，不意外地，全球經濟正在影響本公司。儘管如此，我們在許多關鍵面向仍持續取得扎實進展。儘管顯示器產業處於五年來最差的環境，玻璃價格下跌幅度卻是五年來最小。這為我們穩定該業務的報酬提供了良好基礎。

We are generating excellent operating cash flow, and we are returning cash to our shareholders. We are beating the competition, and we have a great opportunity set ahead of us, as exemplified by our recent progress on attacking the automotive glazing market with Gorilla Glass. Now we look forward to sharing many more details of our strategy and capital allocation framework at our annual and investor meeting next week. Ann?

我們正在創造優異的營運現金流，並將現金回饋給股東。我們正勝過競爭對手，且未來有很好的機會組合；例如我們近期以 Gorilla Glass 切入汽車玻璃（glazing）市場所取得的進展。我們也期待在下週的年度與投資人會議上，分享更多策略與資本配置架構的細節。Ann？

Thank you, Wendell and Tony. I will now open up the lines for questions. Lois?

謝謝你，Wendell 與 Tony。我現在開放線路供提問。Lois？

(Operator Instructions)

(接線員指示)

Vijay Bhagavath from Deutsche Bank.

德意志銀行的 Vijay Bhagavath。

Yes, hey, good morning to you. Great call, and you guys are doing an amazing job at -- keeping your display business steady, with all these [directions] going on.

是的，嗨，早安。這通電話會議很棒，你們在——在這些[變動]發生的情況下，仍把顯示器業務維持得很穩，做得非常出色。

The question for you is -- it's no surprise that China consumer demand is starting to weaken, especially in terms of sentiment, with all the drama we are seeing in the China market there. Do you anticipate, heading forward into the rest of the year, further weakness in TV demand from the Chinese consumers? And my guess, is roughly 40% of HDTV sales will be to the China market.

我想問的是——不意外地，中國消費需求開始轉弱，尤其是情緒面，因為我們看到中國市場出現許多波動。你們是否預期，展望今年剩餘時間，中國消費者對電視的需求會進一步走弱？而我猜測，大約 40% 的 HDTV 銷售會銷往中國市場。

So that's where I am coming from. I'd like to some qualitative commentary for you -- from you, through for the rest of the year. If China consumer demand for TV sets would deteriorate, how that'd impact your display business? Thanks.

所以我的問題出發點在這裡。我希望你們能就今年剩餘時間提供一些質性評論——如果中國消費者對電視機的需求惡化，會如何影響你們的顯示器業務？謝謝。

So I think from an overall standpoint, actually last year China was one region that had strong growth on a year-over-year basis. And that includes, in the fourth quarter where there were strong sales on things like the Singles Day on November 11, and also the sales starting in the early part of December for the Chinese New Year.

我想就整體而言，其實去年中國是年增成長強勁的地區之一。這也包括第四季，像是 11 月 11 日的光棍節帶動強勁銷售，以及 12 月初開始為中國農曆新年所做的促銷銷售。

I think that there is -- I think the important thing to keep in mind, when we look at our growth on sales on a year-over-year basis, at glass at retail, what really drives a lot of that growth, of course, is what happens with the screen size. As you saw on the chart that we presented, that's the biggest single driver of our growth on a year-over-year basis.

我認為——我想要提醒的一個重點是，當我們以年增角度來看我們的銷售成長、看零售端的玻璃需求時，真正驅動很大一部分成長的，當然是螢幕尺寸的變化。如同你在我們提供的圖表中所看到的，這是我們年增成長最大的單一驅動因素。

We think sales are going to be up 2% TV unit sales on a year-over-year basis. It could be a little bit weaker than that. But we think our range of being up in the high single-digits, we feel pretty good about that. And a lot of that actually has to do with the screen size growth.

我們認為電視整機出貨量年增將成長 2%。可能會比這個數字稍弱一些。但我們對於玻璃需求成長落在高個位數的區間仍相當有信心。而其中很大一部分其實與螢幕尺寸成長有關。

And a quick follow-up if I may, the Summer Olympics would mostly be broadcast in 4K. Do you anticipate any mid-year spike in 4K TV demand, because a lot of us would like to watch Summer Olympics in 4K? Thanks.

如果可以的話我再追問一下，夏季奧運多數將以 4K 轉播。你們是否預期年中會因為 4K 轉播而出現一波 4K 電視需求的尖峰，因為我們很多人都想用 4K 觀看夏季奧運？謝謝。

And we would love for you to watch the Summer Olympics in 4K. I think, when we look at 4K demand in general, it did increase in 2015 to about 28 million units. We hope to -- we expect it to probably come close to doubling in 2016, that price points are getting closer to 1.5, and which we think will really increase the adoption from a demand standpoint.

我們也很希望你用 4K 觀看夏季奧運。我想，就整體 4K 需求來看，2015 年確實增加到約 2,800 萬台。我們希望——我們預期 2016 年可能接近倍增；價格帶正逐步接近 1.5（的水準），我們認為這將從需求面大幅提升採用率。

But it's always hard to tell on sporting events. Often it does give us a little bit of a pick up right before, but from a whole year standpoint, it's kind of hard to distinguish them.

但就運動賽事而言，總是很難判斷。通常在賽事前確實會帶來一些小幅拉升，但從全年角度來看，就很難把它們清楚區分出來。

Okay. Thank you.

好的。謝謝。

Rod Hall from JPMorgan.

摩根大通的 Rod Hall。

Yes, hi, guys. Thanks for the questions. So I've got a couple for you. The first one, I wanted to just dive into macro more broadly. You are indicating a weaker Q1 than we expected, but a pretty strong full-year guide.

是的，嗨，各位。謝謝讓我提問。我有幾個問題。第一個，我想更廣泛地深入談談總體環境。你們指出第一季比我們預期更弱，但全年指引卻相當強勁。

And I am just wondering behind that, what you are assuming macro through the year? You said that the first half of the year, you expect it to be weak. But it looks like heavy-duty trucks are slow. That's usually a pretty good leading indicator of macro.

我想了解的是，在這背後，你們對今年總體環境的假設是什麼？你們說上半年預期會偏弱。但看起來重型卡車市場很疲弱。那通常是總體景氣相當不錯的領先指標。

We see a lot of other indicators that the US is weakening. So just curious, to hear what your views of macro through the year are that inform that full-year guidance?

我們也看到許多其他指標顯示美國正在走弱。所以想請教，你們對今年總體環境的看法是什麼，並且這些看法如何支撐你們的全年指引？

Second question I wanted to ask, Tony was on the hedging. Can you talk about the fade of the hedging? So you said 70% coverage, I assume that's higher in the early years, and then fades through that period. But can you give us a little bit more color on that?

第二個問題想問 Tony，關於避險。你能談談避險效益的遞減（fade）嗎？你提到 70% 的覆蓋率，我假設在前期年度覆蓋率較高，之後在那段期間逐步下降。但你能否再提供一些更具體的說明？

And then finally, was optical was very strong. Any color on regional strength or project strength there? Thanks a lot.

最後，光學業務表現非常強勁。能否談談各地區的強勁程度或專案動能？非常感謝。

Well, first, starting from a macroeconomic standpoint, we're not expecting a whole lot of change relative to the macroeconomics in 2016. I think, as we look at each of our business units and what's driving the growth there, a lot of it is continuations of what we have seen in 2015.

嗯，首先從總體經濟的角度來看，我們預期相較於2016年的總體經濟，不會有太大的變化。我想，當我們檢視各個事業單位以及推動其成長的因素時，其中很多都是延續我們在2015年看到的趨勢。

I mean, the one area that we do think will be down on a year-over-year basis, is the one that you mentioned, which is in heavy-duty trucks in North America. We expect to see continued weakness in heavy-duty trucks in China, and that's why environmental in total, we think will be down low single-digits.

我的意思是，我們確實認為有一個領域會以年對年來看下滑，就是你提到的北美重型卡車。我們預期中國的重型卡車仍將持續疲弱，因此整體環境事業我們認為將下滑低個位數百分比。

From a yen standpoint, actually we are covered, really throughout that -- we're covered very significantly in 2016 and 2017. And then, as we go out after that, we're covered at a lower percentage from that. So you are correct on that.

就日圓而言，實際上我們已經做了避險，基本上——在那段期間我們的避險覆蓋相當充分，涵蓋2016與2017年。之後再往外看，我們的覆蓋比例會較低。所以你說得沒錯。

And then, Wendell, do you want to talk about what's happening in optical? I mean, it's mostly in North America.

另外，Wendell，你要不要談談光學那邊的情況？我的意思是，主要是在北美。

Sure. I'll hit on all three of Rod's questions. First, good to hear from you, Rod.

當然。我會回應Rod的三個問題。首先，很高興聽到你的聲音，Rod。

Hey, on the macro front, bottom line is, we're planning on a -- not that exciting economy in this coming year. Where you see us recovering as the year goes on, mainly has to do with the supply chain correction in display, and some pickup in some very specific areas, where we have very high margin product sets, like in Gorilla, and some particular market segments in [opto] that have less to do with the economy, and more to do with just the cycle of product introductions, or where they are in their build cycles. But in general, we're with you. We don't see that much good news in the economy here, in the near-term.

嘿，就總體面而言，結論是，我們規劃明年經濟不會太令人興奮。你看到我們在年內逐步回升，主要與顯示器供應鏈修正有關，另外在一些非常特定的領域會有回升，那些領域我們有高毛利的產品組合，例如Gorilla，以及[opto]中某些特定市場區隔，這些與景氣的關聯較小，更多是取決於產品導入週期，或它們所處的建置週期階段。但整體而言，我們同意你的看法。短期內我們看不到經濟面有太多好消息。

On the yen though, yes, it fades. What Tony and his team have managed to do here, is the coverage is still quite high, all the way out for a lot of years. So in many ways, this has just lopped off the downside risk of the yen.

至於日圓，是的，避險效果會逐漸淡化。Tony和他的團隊在這裡做到的是：避險覆蓋率仍然相當高，而且往後很多年都維持高水準。所以在很多方面，這等於把日圓的下行風險切掉了。

And the compliment I would make to him and his team is, once we got in place, the long-term supply agreements, they gave us confidence, we are going to have the yen flows. Then we just bided our time, and we're disciplined, waiting for what we knew there would be a [volatile] moment in the markets. The yen would sink, and then we had in place all the trades that would make it close, at a rate that we think is attractive, and gives our shareholders a good shot.

我想稱讚他和他的團隊的是，一旦我們建立了長期供應協議，就讓我們有信心確定會有日圓的現金流。接著我們就耐心等待並保持紀律，等候我們知道市場一定會出現的[波動]時刻。日圓會走貶，而我們事先已布好所有交易，能在我們認為具吸引力的匯率水準鎖定，並讓股東有很好的機會受益。

So in opto, actually, though opto was really strong throughout the year, we think it can get stronger. Because we had two areas that are sort of in low cycle in quarter four, and somewhat in quarter one, which is the ultra data center market, and we're in between big builds in fiber to home, right?

至於光學（opto），其實光學全年都非常強勁，我們認為還能更強。因為有兩個領域在第四季處於相對低週期，第一季也有些類似：一個是超大型資料中心市場；另一個是光纖到府的大型建置之間的空檔，對吧？

We're sort of wrapping up in Australia. We've got new ones onboard, that they are going to be coming on stream. So right now, opto continues to feel strong, mainly because of how superior our product set is, and the extent that we are really beating the competition in all of our core high value add systems.

我們在澳洲的案子差不多收尾了。我們也有新的案子上線，接下來會逐步投入運作。所以目前光學仍然感覺強勁，主要是因為我們的產品組合非常優越，以及我們在所有核心高附加價值系統上確實正在擊敗競爭對手。

Great. Thanks a lot, guys, and congrats on the hedging.

很好。非常感謝各位，也恭喜你們的避險做得很到位。

Thanks, buddy.

謝啦，老兄。

Medhi Hosseini from SIG.

SIG的Medhi Hosseini。

Yes, thanks for taking my question. It's Medhi Hosseini from SIG.

是的，謝謝讓我提問。我是SIG的Medhi Hosseini。

Just as a follow-up to the previous question, and focusing on your display, what is it in the supply chain that you see that gives you the confidence, with your year end unit volume up 5%? And I ask that because, this would suggest a very strong sequential growth in Q2 and Q3 off of your Q1 guide. And I ask that, because this would suggest a very strong sequential growth in Q2, Q3 off of a your Q1 guide? So anything company-specific or supply chain-specific, that you can offer gives us confidence will be great.

就前一題追問，聚焦在你們的顯示器業務，你們在供應鏈上看到了什麼，讓你們有信心在年底出貨量成長5%？我這樣問是因為，這代表相對於你們對第一季的指引，第二季與第三季的季對季成長會非常強勁。我之所以問，是因為這表示在你們第一季指引的基礎上，第二季、第三季的季對季成長會非常強勁。所以不論是公司特定或供應鏈特定的因素，只要你們能提供一些資訊來增強我們的信心，都會很有幫助。

And then, I have a follow-up.

另外我還有一個追問。

Sure. I think when you will go back and take look at that chart on the demand that happens from a glass market standpoint, and then from the retail market. What happens when panel makers lower their utilizations, it gives an opportunity for there to be a significant reduction in inventory. Some of that happened in Q4, and we expect more of that to happen in Q1.

當然。我想如果你回去看那張圖，從玻璃市場的需求面，以及零售市場的角度來看。當面板廠降低稼動率時，就會帶來大幅降低庫存的機會。其中一部分在第四季已經發生，我們預期第一季還會有更多。

Once that happens, then you're much more aligned with where panel maker utilizations will increase their utilizations, and our glass volume will grow. We do expect that to happen more in the second half, but we do think there will be growth in the second quarter.

一旦這發生，你就會更貼近面板廠稼動率回升的時點，而我們的玻璃出貨量也會成長。我們確實預期這會更多發生在下半年，但我們也認為第二季會有成長。

Got you.

了解。

And Medhi, all I would add is that I think to get a handle on this, if you go back to that slide you saw from Tony -- it's that slide that says, expect 2016 retail market growth of high single-digits. What that is -- the first thing to get comfortable with is, where do you see TV units? It's not a big part of the overall growth story, but that is up 2% we think, right?

另外，Medhi，我想補充的是，要掌握這件事，如果你回去看Tony那張投影片——就是那張寫著「預期2016年零售市場成長高個位數」的投影片。那代表——第一個要先釐清的是，你怎麼看電視出貨量？它不是整體成長故事中的大部分，但我們認為會成長2%，對吧？

Then it's about size, and we will share more about this in the IR day. But television size has been -- television screen size has been one of the surest bets in display, and we expect that to contribute a lot. And then, of course, IT and [small] is -- adds a little.

接著是尺寸，我們會在投資人日（IR day）分享更多。但電視尺寸——電視螢幕尺寸一直是顯示器領域最確定的趨勢之一，我們預期它會貢獻很多。然後，當然，IT與[小尺寸]也會——帶來一些增量。

So the first thing to get comfortable about is, what do you think about total LCD glass area growth? And we are sort of in line with what we see out of the most trusted external sources, and we have some specific thoughts on TV screen size. Then we go from that 8% to 10%, to then we're going to -- we're going to see the supply chain decline, right, and use up some of that growth. And that 's what will take us to up mid single-digits.

所以第一個要先建立信心的是，你怎麼看整體LCD玻璃面積的成長？我們的看法大致與最可信的外部來源一致，而且我們對電視螢幕尺寸也有一些具體觀點。接著我們從8%到10%出發，然後我們會——我們會看到供應鏈下滑，對吧，並消化掉其中一部分成長。而這就會把我們帶到中個位數的成長。

So I think, Medhi, the first thing to get comfortable about is, what do you think is really happening at demand? And we will try and give you some of those details, so you can make a good judgment. Okay?

所以我想，Medhi，第一個要先釐清的是，你認為需求端到底發生了什麼。我們會試著提供你一些細節，讓你能做出好的判斷。好嗎？

Great, thanks for the detailed color. And then moving on to the specialty materials, especially with the diversification of application into auto. It is great that you have customer diversification, but can you help us understand how the margin profile is going to play out, especially in the past, one particular customer may have pressured you on the prices? Now that you have diversification of application and customer, should we expect the recent improvement in operating margin were to sustain?

很好，謝謝你提供這麼詳細的說明。接著談到特殊材料，尤其是應用多元化到汽車領域。你們有客戶多元化很棒，但能否幫我們理解毛利結構會如何發展？特別是過去某個特定客戶可能在價格上對你們施壓。現在應用與客戶都更分散，我們是否應該預期近期營業利益率的改善能夠持續？

Now when you say auto, are you speaking about glazing, or are you speaking about our environmental approach?

那麼當你說「汽車」時，你指的是車用玻璃（glazing），還是指我們的環境策略？

Glazing, the Gorilla application -- the Gorilla, using auto application.

車用玻璃，Gorilla 的應用——Gorilla，採用自動化塗佈（auto application）。

I think the way you should think about -- the way we are going to price this, right, is you should think about it sort of in the range of what we sell LCD glass for. So it's not going to be as profitable as some of our consumer electronics Gorilla stuff is, but it's still going to be quite profitable, as you can take a look at our display business.

我認為你應該這樣想——我們要如何為這項產品定價，對吧——你應該把它大致放在我們銷售 LCD 玻璃的價格區間來看。所以它不會像我們某些消費性電子的 Gorilla 產品那麼高獲利，但仍會相當有利潤，你可以看看我們的顯示器業務。

The key thing here isn't going to be how profitable it will be. The key thing is going to be here is, how successful can we be about turning that market up on it's head with our new light-weight solutions.

這裡的關鍵不會在於它有多賺錢。關鍵在於，我們能在多大程度上用新的輕量化解決方案，成功地顛覆那個市場。

If we can do that, and get the volume, we're all going to love the profitability because we already have the capital in place really. So the first $400 million of revenue we get in that business, is going to be like a free shot on goal. Because we will be able to create that capacity, rather than through capital spending, but rather through productivity in our LCD and Gorilla businesses. So the key thing to watch there is, can we get that volume closed, Mehdi.

如果我們能做到，並把量做起來，我們都會喜歡它的獲利能力，因為我們基本上已經把資本設備都到位了。所以在那個業務中，我們拿到的前 4 億美元營收，會像是免費的一次射門機會。因為我們能夠透過產能提升來創造那個產能，不是靠資本支出，而是靠我們 LCD 與 Gorilla 業務的生產力提升。所以那裡要觀察的關鍵是：我們能不能把那個量談下來、敲定下來，Mehdi。

Yes, and this is Jeff. And as we move from the glazing market to the interior of the car, we see strong potential there for actual -- selling for more than we do even in the consumer electronics space, because managing reflections and durability is so much more important in a car, than it is even in on your phone.

是的，我是 Jeff。而且當我們從車用玻璃市場走向車內部件時，我們看到很強的潛力——實際上售價可能比我們在消費性電子領域賣得還高，因為在車上，反射控制與耐久性的重要性遠高於手機。

So Jeff, from your mouth to God's ear, that would be great. (laughter)

Jeff，承你吉言，那就太好了。(笑聲)

Thank you. So if you had 16% net margin for specialty materials in 2015, is this a bogey? Is that something we could model for, going forward?

謝謝。那如果 2015 年特殊材料（specialty materials）的淨利率是 16%，這是個目標值（bogey）嗎？這是我們往後可以用來建模的水準嗎？

I think for auto, what we ought to do, is reflect a little, and let's see what we can do to help you in thinking -- if you mean for auto? For specialty, I think, what we would hope -- what we're trying to done in Gorilla is we are introducing ever more advanced product sets, that in terms of pure glass, that our revenue per device will go up, and with that our margin.

我想就汽車而言，我們應該先稍微想一想，看看能怎麼協助你思考——你是指汽車嗎？就特殊材料來說，我想我們希望——我們在 Gorilla 上努力做的是導入越來越先進的產品組合，就純玻璃而言，我們的單機（per device）營收會提高，隨之而來毛利率也會提升。

As well as, we are going to add some other features, to increase our revenue even further and those may be at a little lower margins. But in auto, I think we owe you -- once we get a little bit more momentum going, we owe you how to think about that business.

另外，我們也會加入一些其他功能，進一步提高營收，而那些可能會是毛利率稍低一些的項目。但在汽車方面，我想我們欠你一個——等我們再多一些動能之後，我們會告訴你應該如何看待那個業務。

Got it. Very helpful. Thank you.

了解。非常有幫助。謝謝。

Joseph Wolf from Barclays.

Barclays 的 Joseph Wolf。

Thank you. Just two follow-up questions. I guess, I will start with auto. I just want -- as you look at the selling proposition right now, it sounds like the assets are in place. But when you go to these auto guys, now that you have the glazing relationship, are you selling weight reduction, and does oil pricing matter? Or are you selling visibility, optics, and clarity, and how is that being -- or how is that resonating with the customer base right now?

謝謝。兩個追問。我想先從汽車開始。我只是想——就你們目前的銷售主張來看，聽起來資產都已到位。但當你們去找這些車廠時，既然已經有車用玻璃的合作關係，你們是在賣減重嗎？油價有影響嗎？還是在賣可視性、光學表現與清晰度？目前客戶端的反應——或說共鳴——如何？

So great questions, Joseph. We are hitting on really three things, that are in the value prop. The first is light-weight. Now despite the low gas prices, all of the car companies have -- by regs, have a target, for what they have to increase miles per gallon for their fleet.

問題很好，Joseph。我們的價值主張主要打三點。第一是輕量化。即使油價偏低，所有車廠依照法規都必須達成車隊的每加侖英里數（MPG）提升目標。

So they are all very interested in light-weighting the vehicle, and they have specific numbers in mind that they pay for every pound or kilo that they save. And with us being able to serve, greater than 30% of -- reduce weight by greater than 30% of glazing, at a price point that looks attractive in terms of those weight buys, that gets traction.

所以他們都非常關注車輛輕量化，而且他們心中有明確的數字：每減少一磅或一公斤，他們願意付多少錢。而我們能在車用玻璃上把重量降低超過 30%，同時價格點在那些「按重量採購」的標準下看起來具吸引力，這就能帶來進展。

But what we are also able to do is actually increase the safety of the vehicle. Because even though we are going lighter weight, basically what happens is when you have something like a rock strike, it can penetrate the outer layer of the soda-lime glass, but then it doesn't penetrate Gorilla. As well to the safety component is what we have been able to show, is dramatically reduced windshield replacements, is that with something like a sharp rock strike.

但我們還能做的是實際提升車輛安全性。因為即使我們更輕，基本上當發生例如碎石擊中時，它可能穿透鈉鈣玻璃（soda-lime glass）的外層，但不會穿透 Gorilla。此外，在安全面向上，我們已經能展示的是：像尖銳碎石擊中這種情況，擋風玻璃更換次數會大幅下降。

Basically we could save almost half of windshield replacements, because once again, the glass reacts in a much stronger, tougher way. So you don't end up with those classic cracks that can happen from thermal shock, after you have damage introduced to the glass from something sharp. Or blunt, for that matter.

基本上我們幾乎可以省下接近一半的擋風玻璃更換，因為同樣地，玻璃的反應更強、更韌。所以你不會出現那些典型裂紋——在玻璃被尖銳物造成損傷後，因熱衝擊（thermal shock）而產生的裂紋。鈍擊也是同理。

And then finally, it's the enhanced experience for the driver, because here you're looking at a purely optical piece of glass, right? We make this on same asset sets that we make display, right? So this piece of glass, and because it's thinner it allows you to have [HUD] displays that are 70% or more bigger, and tremendously clearer.

最後，是為駕駛帶來更好的體驗，因為這裡你看到的是一片純光學等級的玻璃，對吧？我們用製造顯示器的同一套資產來做它，對吧？因此這片玻璃因為更薄，能讓你擁有大 70% 甚至更多的 [HUD] 抬頭顯示器畫面，而且清晰度大幅提升。

I mean, one of the things, Jeff did out at Consumer Electronics Show -- and you will get a chance to see it at IR day, is take a look at the HUD that we built in conjunction with Conti, who is one of the -- who is the biggest HUD manufacturer in the world. And what they said was that we have never seen a HUD display like this. It is incredible, far and away.

我的意思是，Jeff 在消費性電子展（Consumer Electronics Show）上展示的一件事——你們在 IR day 也會有機會看到——就是看看我們與 Conti 共同打造的 HUD；Conti 是全球最大的 HUD 製造商。他們說，他們從沒看過這樣的 HUD 顯示。非常驚人，遠遠超出以往。

So it's all of those three things. Are we getting pull? Without a doubt, people are really excited about it. Now to calm us all down, damn, this industry moves slow. Okay?

所以就是這三點。我們有沒有獲得客戶拉力（pull）？毫無疑問，大家真的很興奮。不過先讓大家冷靜一下，該死，這個產業推進得很慢。好嗎？

So this is just a very conservative industry for a good reason, right? So man, it's going to take time for us to build, which is why we keep pointing to, there's proof points along the way. We'll know where we are, long before the volume shows up. So that's probably more than you wanted to know, Joseph.

所以這是一個非常保守的產業，而且有其合理原因，對吧？所以，老兄，我們需要時間去建立，這也是為什麼我們一直強調：沿途會有一些驗證點（proof points）。在量真正出現之前很久，我們就會知道進展到哪裡了。所以這可能比你想知道的還多，Joseph。

No, that's great. And the, just as a follow-up on optical, you started to address this. But what are the levers, that you think about the opportunities in between product cycles in the fiber business, or builds in different geographies, and kind of a seasonal, it sounds like ultra data center environment? What are the levers to get the margins up in 2016, and should we expect any of that throughout the year?

不，這很棒。另外，針對光學的追問，你剛剛已經開始回答了。但在光纖業務中，你們如何看待產品週期之間的機會、不同地理區域的建置，以及某種季節性——聽起來像是超大型資料中心（ultra data center）環境？在 2016 年把毛利率拉升的槓桿有哪些？我們是否應該預期這些會在全年逐步體現？

I think that the two major levers are -- you're onto the first one, which you heard Tony talk about, which is about mix, right? So we make more money, when we sell these highly integrated solutions, that we are the only guy in the world that does. So it's a classic example of capitalism working, right?

我認為兩個主要槓桿是——你已經點到第一個了，你也聽到 Tony 談到的，就是產品組合（mix），對吧？當我們銷售這些高度整合的解決方案時，我們賺得更多，而這些解決方案全世界只有我們做得到。所以這是資本主義運作的典型例子，對吧？

And for those, we certainly don't expect there to be less data centers built in the coming year. The main thing that has happened with the hyperscale data centers is there was like an adjustment from just a couple of key customers, that are adjusting their inventory. We expect them to come back online. We're going to look to expand our presence there, right? So that's one way we do it.

而對於這些，我們當然不預期在接下來一年會有更少的資料中心被興建。超大規模資料中心主要發生的情況是，少數幾個關鍵客戶做了調整，正在調整他們的庫存。我們預期他們會重新回到正軌。我們也會尋求擴大我們在那裡的布局，對吧？所以這是我們做的一種方式。

And then the other is more like you say, we've got to wait for the right cycles and builds on fiber to the home, and how that works. Meanwhile, we will do the things, we always do on margins, we relentlessly drive our cost down every year. And you can expect that to happen, in Opto as well.

另外一種就像你說的，我們得等待合適的週期，以及光纖到府（FTTH）的建置進程與其運作方式。同時，我們會做我們一向在毛利上做的事：每年持續不懈地把成本降下來。你也可以預期在 Opto 也會發生同樣的事。

That's exactly right. And one of the things that happened in the fourth quarter, will continue a little bit into Q1. But will certainly be resolved by end of Q1, or just some production issues that we run into, that we will get ourselves worked through. We are already well into that, and you will start seeing margins improve there.

完全正確。而且第四季發生的一件事，會稍微延續到第一季。但在第一季末肯定會解決，也就是我們遇到了一些生產問題，我們會把它處理完畢。我們已經在積極推進，你會開始看到那邊的毛利改善。

All right. Thank you.

好的。謝謝。

Patrick Newton from Stifel Nicolaus.

Stifel Nicolaus 的 Patrick Newton。

Good morning, Wendell and Tony. Thank you for taking my question. I guess, a two-part question on specialty materials.

早安，Wendell 和 Tony。謝謝你們回答我的問題。我想就特種材料提兩個部分的問題。

On the near-term front, you talked about not having some new product releases from customers. But I am curious, typically you don't see a sequential step down of this level in Gorilla, or I guess in specialty materials, barring a meaningful price reduction you saw in 1Q 2013. So near-term, can you talk a little bit about the pricing and volumes that are impacting your 1Q guide?

就短期而言，你們提到客戶沒有一些新產品發表。但我好奇的是，通常你不會看到 Gorilla（或我想在特種材料）出現這種幅度的季對季下滑，除非像你們在 2013 年第一季看到的那種顯著降價。所以短期來看，你能否談談影響你們第一季指引的價格與出貨量因素？

And then, guiding to the very strong remainder of the year, can you touch on what is driving this? Is this the beginning of some automotive benefits entering the model? Is touch accelerating in new applications, or is the largest demand driver from large customer and new product launches?

然後，你們指引今年剩餘期間會非常強勁，能否談談背後的驅動因素？這是否是一些車用領域的效益開始反映在模型中？是觸控在新應用中加速導入，還是最大的需求驅動來自大客戶與新產品上市？

Sure. So first, starting with the Q1, and I think there are two things that are going on in Q1. I mean, one is clearly the volume, as we don't see that launch like we did a year go. And I think there is lots of people out there in the overall mobile device supply chain that have announced the similar type things. And we are seeing that in Q1 also.

當然。先從第一季開始，我認為第一季有兩件事正在發生。其中之一很明顯是量的因素，因為我們沒有看到像一年前那樣的上市動能。我想整體行動裝置供應鏈中有很多公司都宣布了類似的情況。我們在第一季也看到了。

Q1 is where we do see some price declines, but that's -- this is not like what you saw in 2013. This is mostly related, from a volume standpoint.

第一季確實會看到一些價格下滑，但那——這不像你在 2013 年看到的情況。這主要是從出貨量角度所造成的。

In terms of what's going to drive the rest of the year, that is not about automotive, and getting a win there. This is all about consumer electronic devices. And as Wendell said, our ability to add value onto those devices.

至於今年其餘時間的驅動因素，這不是關於車用，也不是在那裡拿到案子。這完全是關於消費性電子裝置。而如同 Wendell 所說，我們有能力在那些裝置上增加價值。

Yes. I think you've got it -- you've got it Patrick, that it's going to primarily get driven by major new launches. As those new product sets come out, we see that natural surge up in supply chain.

是的。我想你說得——你說得對，Patrick，主要會由重大新產品上市所帶動。當那些新產品組合推出時，我們會看到供應鏈自然出現一波拉升。

And the profitability is going to continue to come at us, as Gorilla 4 continues to penetrate more. That's a product that we make more money on, than we did on Gorilla 3. And hopefully, we can keep that trend going, Patrick.

而獲利能力也會持續改善，因為 Gorilla 4 的滲透率會繼續提高。那是一個我們比 Gorilla 3 賺得更多的產品。希望我們能把這個趨勢延續下去，Patrick。

Great. And then, just as a follow-up, Wendell, in your prepared remarks, you said that weeks of display inventory grew at the highest level -- or is that the highest level in five years? And then you said that area growth in display was at the lowest level in five years, while still adding in several times -- in both the prepared remarks and Q&A, that area growth or larger screen size is the key driver for display. So I guess, first, can you quantify where weeks of inventory currently stands in the display business?

很好。接著追問一下，Wendell，在你事先準備的發言中，你提到顯示器庫存週數成長到最高水準——或那是五年來最高水準嗎？然後你又說顯示器的面積成長是五年來最低水準，但同時你在事先發言與問答中都多次補充，面積成長或更大螢幕尺寸是顯示器的關鍵驅動因素。所以我想先問，你能否量化目前顯示器業務的庫存週數大概在什麼水準？

And then, on the growth of TVs, you did guide for an increase of at least 1.5 inches. But given that we probably saw that much or more on 2015, do you anticipate that area growth will reaccelerate year-over-year? Or have we passed that inflection point, and should actually start to see area growth rates slow?

然後，關於電視的成長，你們確實指引螢幕尺寸至少增加 1.5 吋。但考量到我們在 2015 年可能已經看到差不多甚至更多的增幅，你是否預期面積成長會在年對年基礎上重新加速？或者我們已經過了那個拐點，面積成長率其實會開始放緩？

So first on the supply chain, we aren't going to give the number of weeks. We've stopped doing that. But I think it's safe to say, that it was very high. At the end of the year, it did come down versus Q3, but it still ended up very high. In -- and all of our remarks and thoughts about what's happening in Q1 is definitely based on that.

先談供應鏈，我們不會提供庫存週數的數字。我們已經停止提供那個了。但我想可以很安全地說，那個水準非常高。年底時相較第三季確實有下降，但最後仍然處在非常高的水準。而我們對第一季發生情況的所有評論與看法，確實都是基於這一點。

From a screen size standpoint, I think, screen size, we think was up about 1.2, 1.3 inches. It was depressed a little bit because there was a big Mexico incentive program. And we expect to, as we said in 2016, for it to be more than an 1.5 inch. How much more than 1.5 inch it is, is we don't know. We have certainly done some work and some analysis on that and if it ends up being more than that then, of course, the market will be a little higher.

從螢幕尺寸的角度來看，我們認為螢幕尺寸大約增加了 1.2 到 1.3 吋。它有點被壓抑，因為墨西哥有一個很大的補貼方案。而我們預期，如同我們對 2016 年所說，會超過 1.5 吋。至於會比 1.5 吋多多少，我們不知道。我們當然做了一些研究與分析；如果最後確實超過那個水準，那麼市場當然會稍微更高一些。

Yes, Patrick. I'd just add to that. So last year, it wasn't so much that the screen size (inaudible), it did. It grew, right and as Tony, said the Mexican subsidy was about specifically like 24-inch TV, something like that. Some ridiculously small TV.

是的，Patrick。我再補充一下。所以去年，並不是螢幕尺寸（聽不清）沒有成長，它確實有成長，對吧？如 Tony 所說，墨西哥的補貼大概是針對像 24 吋電視之類的，差不多那樣。

But what happened in the dynamic was the units went down, right? And that is, I think the key that is different between this coming year and last year. So we expect units to pop back, as well as a little bit more oomph, coming out of screen size.

但動態上發生的是出貨台數下滑了，對吧？而我認為，這就是接下來一年與去年之間不同的關鍵。所以我們預期台數會回升，同時螢幕尺寸也會帶來多一點動能。

It is debatable, right. It's debatable. I mean, it's hard to see for sure into the future, but at every other time, we've seen a little dip like this, a compression in television demand, the year after, is usually bounce back a lot stronger than what we're guiding at right now. And there is a lot of other qualitative factors we can add up. But hey, man, it's a legitimate question, Patrick.

這是有爭議的，對吧。確實有爭議。我的意思是，很難確定地看清未來，但在以往每一次我們看到像這樣的小幅下滑、電視需求的壓縮，隔一年通常會比我們現在給的指引反彈得更強。而且我們還可以加總很多其他的質性因素。不過，嘿，這確實是個合理的問題，Patrick。

Thank you. And Tony, in case I missed it, did you give a CapEx guidance for 2016?

謝謝。Tony，如果我沒聽漏的話，你有提供 2016 年的資本支出（CapEx）指引嗎？

No, we needed you to come to the IR meeting next week.

不，我們需要你下週來參加投資人關係（IR）會議。

All right, I'll be there. Thank you.

好，我會到場。謝謝。

You are going to want to see the displays any way. (laughter) (multiple speakers). They will be worth coming to.

反正你也會想看看展示。(笑聲)（多位發言者）。值得你特地來一趟。

(laughter) (multiple speakers).That will not be the highlight of the meeting.

(笑聲)（多位發言者）。那不會是會議的重點。

All right. Thank you for taking my question.

好。謝謝你回答我的問題。

Lois, we'll do one more quick question.

Lois，我們再快速收一個問題。

Doug Clark from Goldman Sachs.

高盛的 Doug Clark。

Great. Thanks for sneaking in my question here. Something that wasn't touched on during the call. I am just curious about the transition to even thinner glass, 0.3 millimeter and below, are we seeing that in any real material volumes at this point? Or is it still kind of lapping through the transition to 0.5 and 0.4?

太好了。謝謝讓我在這裡插入提問。有件事在這通電話中沒有提到。我只是好奇，轉向更薄的玻璃（0.3 毫米及以下）這件事，目前我們是否已經看到任何實質的出貨量？還是仍然算是在往 0.5 與 0.4 的過渡期中逐步推進？

Not yet. Not yet. That's a good question for Mr. Clappin, when he shows up at our IR meeting, but not yet. We've certainly got a number of folks talking to us about it It's certainly something that we can do, but we haven't seen the big shift start as of yet.

還沒有。還沒有。這是個好問題，等 Clappin 先生出席我們的 IR 會議時可以問他，但目前還沒有。確實有不少人跟我們談到這件事；這當然是我們能做到的，但我們至今還沒看到大幅轉移開始。

Okay, great. And then, my one additional follow up was, just on the inventory situation throughout the supply chain. I was just wondering if the utilization cuts are a global phenomenon? In other words, are you also seeing utilizations come down in China as well? Or is it more developed market dynamics that are responding to panel price declines?

好的，很好。另外我還有一個追問，是關於整個供應鏈的庫存狀況。我想了解，產能利用率下調是否是全球性的現象？換句話說，你們是否也看到中國的產能利用率同樣下滑？還是主要是已開發市場因面板價格下跌而出現的動態反應？

That is a really clever, insightful question, right, very clever. So we've seen something a little different in the supply chain in 2015, than we have in other years. Typically, the panel makers have gotten a -- not typically, but the panel makers have gotten a lot sharper.

這真是個很聰明、很有洞見的問題，對，真的很巧妙。所以我們在 2015 年看到供應鏈出現一些與往年不同的情況。一般來說，面板廠——也不能說一般，但面板廠確實變得更精準了。

When panel prices are falling, and they start to approach their cash costs, they have not been keeping any inventory, and they have been rapidly adjusting their utilization. And we saw that, from most of the highly established, developed panel makers.

當面板價格下跌、並開始接近其現金成本時，他們不會保留任何庫存，並且會迅速調整產能利用率。我們從多數成熟、已開發的面板製造商那裡看到了這種做法。

We saw less of a reaction out of the major Chinese panel makers, some of whom are our really big customers, who continued to run their panel fabs, probably longer than they should have. We've seen a build up of some very small sized TVs in that set. However, we are seeing them adjust now.

我們從主要的中國面板廠看到的反應較少，其中一些還是我們非常大的客戶；他們持續運轉面板廠，可能比應該的時間更久。我們看到那一組產品中一些小尺寸電視的庫存有所累積。不過，我們現在也看到他們正在調整。

But that's a very clever question. It's something that we are going to have to keep an eye on, to get an understanding of, will the emergence of these strong Chinese players mean, that the supply chain is going to run a little fatter than it used to? Or is it just a matter of where they are in their own cycle of learning? We need a little more data to know.

但這確實是個很聰明的問題。這是我們必須持續關注的事情，以便理解：這些強勢的中國業者崛起，是否意味著供應鏈的庫存水位會比過去更「厚」一些？或者這只是他們自身學習曲線所處階段的問題？我們需要更多數據才能判斷。

Very well. I appreciate that color. Thank you.

非常好。感謝你提供這些補充說明。謝謝。

Thanks, Doug. Thanks, guys. I think we will end the call now. We have a few announcements first. As Wendell said, our annual Investor meeting is on Friday, February 5, at Cipriani Wall Street in New York City. You can register for the event on our website. Wendell, Tony, Jeff and our business leaders will be present.

謝謝你，Doug。謝謝各位。我想我們現在要結束電話會議。不過先有幾項公告。如 Wendell 所說，我們的年度投資人會議將於 2 月 5 日（週五）在紐約市的 Cipriani Wall Street 舉行。你可以在我們的網站上報名。Wendell、Tony、Jeff 以及我們的業務主管都會出席。

And you will have a hands-on opportunity to step into the Glass Age with Corning. We will be sharing our very popular exhibits from the recent Consumer Electronics Show. We will also be at the Goldman Sachs conference on February 9 in San Francisco, and Morgan Stanley on March 1, also in San Francisco.

你也將有機會親身體驗，與康寧一起踏入「玻璃時代」。我們將分享近期消費性電子展（CES）上非常受歡迎的展示。我們也將於 2 月 9 日在舊金山參加高盛會議，以及 3 月 1 日同樣在舊金山參加摩根士丹利會議。

Thank you all for joining us today. A playback of the call is available beginning at 11:00 AM, and will run until 5:00 PM on Tuesday, February 9. The phone number is 800-475-6701, and the access code is 382853. The audiocast is available also on our website during that time.

感謝各位今天加入我們。電話會議重播將於上午 11:00 開始提供，並持續至 2 月 9 日（週二）下午 5:00。電話號碼是 800-475-6701，存取碼是 382853。在此期間，音訊網路直播回放也可於我們的網站上收聽。

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

Lois，我們的電話會議到此結束。請斷開所有線路。

Thank you. And, ladies and gentlemen, that does conclude the conference for today. Thank you 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。感謝使用 AT&T 高階主管電話會議服務。您現在可以掛線。

Thank you very much.

非常感謝。

You are welcome.

不客氣。