康寧 (GLW) 2022 Q2 法說會逐字稿

Welcome to the Corning Incorporated Quarter 2 2022 Earnings Call. (Operator Instructions). It is my pleasure to introduce to you, Ann Nicholson, Vice President of Investor Relations.

歡迎參加康寧公司 2022 年第二季度財報電話會議。 （操作員說明）。很高興向您介紹投資者關係副總裁 Ann Nicholson。

Thank you, and good morning, everybody. Welcome to Corning's Q2 2022 Earnings Call. With me today are Wendell Weeks, Chairman and Chief Executive Officer; Ed Schlesinger, Executive Vice President and Chief Financial Officer; and Jeff Evenson, Executive Vice President and Chief Strategy Officer.

謝謝大家，大家早上好。歡迎參加康寧 2022 年第二季度財報電話會議。今天和我在一起的是董事長兼首席執行官 Wendell Weeks； Ed Schlesinger，執行副總裁兼首席財務官；和執行副總裁兼首席戰略官 Jeff Evenson。

I'd like to remind you that today's remarks contain forward-looking statements that followed in the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks, uncertainties and other factors that could cause actual results to differ materially. These factors are detailed in the company's financial reports. You should also note that we will be discussing our consolidated results using core performance measures, unless we specifically indicate our comments relate to GAAP data. Our core performance measures are non-GAAP measures used by management to analyze the business.

我想提醒您，今天的評論包含符合 1995 年《私人證券訴訟改革法案》含義的前瞻性陳述。這些陳述涉及可能導致實際結果出現重大差異的風險、不確定性和其他因素。這些因素在公司的財務報告中有詳細說明。您還應該注意，我們將使用核心績效指標來討論我們的綜合結果，除非我們特別指出我們的評論與 GAAP 數據有關。我們的核心績效指標是管理層用來分析業務的非公認會計原則指標。

For the second quarter, the largest difference between GAAP and core results stems from nonmarket noncash mark-to-market gains associated with the company's currency hedging contracts. This increased GAAP earnings in Q2 by $203 million. To be clear, this mark-to-market accounting has no impact on our cash flow. A reconciliation of core results to the comparable GAAP value can be found in the Investor Relations section of our website at corning.com. You may also access core results on our website with downloadable financials in the Interactive Analyst Center. Supporting slides are being shown live on our webcast. They're also available on our website for downloading.

對於第二季度，GAAP 與核心業績之間的最大差異源於與公司貨幣對沖合約相關的非市場非現金按市值計價收益。這使第二季度的 GAAP 收益增加了 2.03 億美元。需要明確的是，這種按市值計價的會計對我們的現金流沒有影響。核心結果與可比 GAAP 值的對賬可以在我們網站 Corning.com 的投資者關係部分找到。您還可以訪問我們網站上的核心結果，並在 Interactive Analyst 中心下載財務數據。支持幻燈片正在我們的網絡廣播中直播。它們也可以在我們的網站上下載。

And now I'll turn the call over to Wendell.

現在我將把電話轉給溫德爾。

Thank you, Ann, and good morning, everyone. Today, we announced strong second quarter results. We captured additional content opportunities across our markets despite an extremely challenging external environment, and we delivered on growing demand in Optical and Solar. Sales were $3.8 billion, up 7% year-over-year. And EPS was $0.57, up 8% year-over-year.

謝謝你，安，大家早上好。今天，我們公佈了強勁的第二季度業績。儘管外部環境極具挑戰性，但我們在市場上抓住了更多的內容機會，並且我們滿足了光學和太陽能不斷增長的需求。銷售額為 38 億美元，同比增長 7%。每股收益為 0.57 美元，同比增長 8%。

Free cash flow was $440 million, and total first half free cash flow was $611 million. Gross margin and operating margin expanded 90 basis points and 120 basis points, respectively, from the first quarter 2022 levels.

自由現金流為 4.4 億美元，上半年自由現金流總額為 6.11 億美元。毛利率和營業利潤率分別比 2022 年第一季度的水平增長了 90 個基點和 120 個基點。

Now our improved profitability was primarily driven by the benefits of pricing actions that we took to more appropriately share the impact of inflation with our customers. In total, we delivered in line with our expectations even though dynamics in 3 of our largest markets played out at the lower end of our assumptions.

現在，我們提高盈利能力的主要原因是我們採取定價行動的好處，以便更適當地與客戶分享通貨膨脹的影響。總體而言，我們的交付符合我們的預期，儘管我們最大的三個市場的動態表現在我們假設的低端。

In the last month of the quarter, panel maker utilization rates declined to the lowest levels since the first quarter of 2009 when we were at the height of the financial crisis. Auto production continued significantly below normal with virtually no cars sold in Shanghai in April due to COVID-19 restrictions and with European new car registrations for June at the lowest levels since 1996.

在本季度的最後一個月，面板製造商的利用率降至 2009 年第一季度以來的最低水平，當時我們正處於金融危機的最嚴重時期。汽車生產繼續顯著低於正常水平，由於 COVID-19 限制，4 月份上海幾乎沒有汽車銷售，6 月份歐洲新車註冊量處於 1996 年以來的最低水平。

In the second quarter, smartphone sales declined 11% year-over-year, primarily stemming from COVID lockdowns in China. In the face of these industry dynamics, we delivered outstanding results in line with our guidance. We did what we said we were going to do, including continued growth and improved profitability. We view the resilience we've demonstrated as a strong proof point that our strategy is working.

第二季度，智能手機銷量同比下降 11%，主要是由於中國的 COVID 封鎖。面對這些行業動態，我們按照我們的指導取得了出色的成績。我們做了我們說過要做的事情，包括持續增長和提高盈利能力。我們將我們展示的彈性視為我們的戰略正在發揮作用的有力證明。

In the third quarter, we expect the challenges in these 3 markets to continue. At the same time, we expect an ongoing benefit from secular trends in Optical and Solar. Both factors are reflected in our guidance. We now expect third quarter sales to be roughly consistent sequentially and to grow year-over-year.

在第三季度，我們預計這三個市場的挑戰將繼續存在。同時，我們預計光學和太陽能的長期趨勢將持續受益。這兩個因素都反映在我們的指導中。我們現在預計第三季度的銷售額將大致保持連續並同比增長。

We expect full year sales to slightly exceed $15 billion and to grow in a range of 6% to 8%. Now Ed will elaborate more in just a moment.

我們預計全年銷售額將略高於 150 億美元，增長幅度在 6% 至 8% 之間。現在 Ed 將在稍後詳細說明。

Now with that in mind, I want to expand on our path to $15 billion and look at the dynamics playing out in 4 critical markets: Display, Optical Communications, Solar and Mobile Consumer Electronics. And I'll address what we're experiencing, how it is reflected in our financials and how we're driving outperformance.

現在考慮到這一點，我想將我們的目標擴大到 150 億美元，並著眼於 4 個關鍵市場的動態：顯示器、光通信、太陽能和移動消費電子產品。我將討論我們正在經歷的事情，它如何反映在我們的財務狀況中，以及我們如何推動表現出色。

Let's start with Display. We are executing well against our strategy. We have been updating you on the panel maker utilization correction for a year now. Panel makers accelerated reductions in the second quarter. The sharpest reduction was in June, and our volume declined in line with panel maker utilization and the market. We expect June's low production level to continue throughout the entire third quarter and our volume to again decline in line with the market.

讓我們從顯示開始。我們的戰略執行得很好。一年來，我們一直在向您更新面板製造商利用率修正。面板廠商在二季度加速減產。降幅最大的是 6 月份，我們的銷量隨著面板製造商的利用率和市場而下降。我們預計 6 月份的低產量水平將在整個第三季度持續，我們的產量將再次與市場同步下降。

Our guidance reflects our view of panel makers second half production, and we expect our second half volume to be lower than the first half. At the same time, we have always said we expect to maintain price stability through this correction. That is exactly what happened in the second quarter. As expected, price was up sequentially, and we expect third quarter price to be consistent with the second quarter.

我們的指引反映了我們對面板製造商下半年產量的看法，我們預計下半年的產量將低於上半年。同時，我們一直表示，我們希望通過這次調整來保持價格穩定。這正是第二季度發生的事情。正如預期的那樣，價格環比上漲，我們預計第三季度的價格將與第二季度保持一致。

As panel makers lower utilization, we are seeing glass makers idle their tanks to perform maintenance and repairs and thereby lower capacity. We are managing our own tank repairs and restarts to align our supply to demand after running flat out for a very, very long time. As a result, we expect glass supply and demand to remain in balance. We feel good about our execution and strategy in display as we continue to operate from a position of strength. We are the industry leader with a global manufacturing footprint, cost advantages, distinctive capabilities and leadership in Gen 10.5 where we are well positioned to capture long-term growth in large-sized TVs.

隨著面板製造商降低利用率，我們看到玻璃製造商閒置他們的坦克進行維護和維修，從而降低了產能。我們正在管理我們自己的油箱維修和重新啟動，以使我們的供需在很長一段時間內完全耗儘後保持一致。因此，我們預計玻璃供需將保持平衡。隨著我們繼續以強勢地位運作，我們對我們的執行和戰略感到滿意。我們是行業領導者，擁有全球製造足跡、成本優勢、獨特的能力和在第 10.5 代中的領先地位，我們有能力在大尺寸電視中實現長期增長。

Let's move to Optical Communications, which was the largest contributor to our second quarter growth. We believe the industry is at the beginning of a large multiyear wave of growth for passive optical networks, and we're well positioned to capture that growth. We're pursuing 3 significant secular trends: broadband, 5G and the cloud. We've got major innovation programs underway for each category, and we're seeing robust traction with our customers.

讓我們轉向光通信，它是我們第二季度增長的最大貢獻者。我們認為，該行業正處於無源光網絡多年大增長浪潮的開端，我們已做好充分準備抓住這一增長。我們正在追求 3 個重要的長期趨勢：寬帶、5G 和雲。我們已經針對每個類別進行了重大創新計劃，並且我們看到了對客戶的強大吸引力。

Momentum continues to build in this business. And you can see this in our financials. Second quarter sales grew 10% sequentially, faster than we expected, and 22% year-over-year to reach $1.3 billion. And we expect to grow year-over-year again in the third quarter and even faster than the market for the full year due to growing demand for our innovations. Take, for example, our edge preengineered systems for cloud operators.

勢頭繼續在這項業務中建立。你可以在我們的財務中看到這一點。第二季度銷售額環比增長 10%，快於我們的預期，同比增長 22%，達到 13 億美元。由於對我們創新的需求不斷增長，我們預計第三季度將再次同比增長，甚至比全年市場增長更快。以我們為雲運營商設計的邊緣系統為例。

Now this product had its biggest quarter-to-date in the second quarter. These solutions, much like FlexNAP for broadband, provide customers with a simpler greener solution that minimizes the number of cables, cable trays and hardware needed.

現在，該產品在第二季度創下了迄今為止最大的季度業績。這些解決方案與用於寬帶的 FlexNAP 非常相似，為客戶提供了一種更簡單、更環保的解決方案，最大限度地減少了所需的電纜、電纜橋架和硬件的數量。

The simple value prop is speed. We're helping get capacity installed much faster, eliminating labor bottlenecks in the industry. Our innovative manufacturing process, which completes splicing at a fraction of the cost and a much higher quality, dramatically reduces on-site labor. So we're accelerating our customers' ability to scale their networks and build cloud capacity, all while driving more Corning solutions into the market.

簡單的價值支柱是速度。我們正在幫助更快地安裝容量，消除行業中的勞動力瓶頸。我們的創新製造工藝以極低的成本完成拼接，質量更高，大大減少了現場勞動力。因此，我們正在加快客戶擴展網絡和構建雲容量的能力，同時將更多康寧解決方案推向市場。

Our visibility and confidence in the adoption of edge products is high because network planning decisions happen well ahead of deployment and we are winning now.

我們對採用邊緣產品的可見性和信心很高，因為網絡規劃決策早在部署之前就發生了，我們現在正在獲勝。

Turning to Solar. The renewable energy industry is evolving rapidly. And our ongoing growth suggests that the market's behavior is more closely tied to a global imperative than simply current economic trends. We recently reenergized our participation in the solar market by turning on idle capacity and securing customer commitments through new long-term take-or-pay contracts for solar-grade polysilicon. In the quarter, sales grew significantly, which is reflected in our top line growth.

轉向太陽能。可再生能源產業正在迅速發展。我們的持續增長表明，市場行為與全球當務之急更密切相關，而不僅僅是當前的經濟趨勢。最近，我們通過新的太陽能級多晶矽長期照付不議合同打開閒置產能並確保客戶承諾，從而重新激活了我們對太陽能市場的參與。在本季度，銷售額顯著增長，這反映在我們的收入增長中。

Looking ahead, we believe that Corning's broader technical and manufacturing capabilities, R3 and R4, will prove highly relevant in helping advance the industry. We expect year-over-year growth to continue in the second half, and we see excellent growth potential in this business.

展望未來，我們相信康寧更廣泛的技術和製造能力，R3 和 R4，將證明對推動行業發展具有高度相關性。我們預計下半年將繼續同比增長，我們看到該業務具有出色的增長潛力。

In Mobile Consumer Electronics, smartphone and IT retail unit sales were down. However, we're outperforming in this market through our more Corning approach, product leadership and ongoing collaboration with true industry leaders. The benefits of our strategy are evident in our results. Specialty Materials sales were consistent with the strong second quarter of 2021. And net income grew 12% year-over-year. We expect to deliver growth in the back half in this down market as customers adopt our innovations for their product launches.

在移動消費電子產品中，智能手機和 IT 零售單位的銷售額下降。然而，通過我們更多的康寧方法、產品領先地位以及與真正的行業領導者的持續合作，我們在這個市場上表現出色。我們的戰略的好處在我們的結果中是顯而易見的。特種材料銷售額與 2021 年第二季度的強勁表現一致。淨收入同比增長 12%。隨著客戶在他們的產品發布中採用我們的創新，我們希望在這個低迷的市場中實現後半部分的增長。

Overall, Corning is executing very well commercially and technically. Despite all the temporary macro challenges, we delivered a solid quarter. We've added more than $700 million in sales in the first half, reflecting an increase of more than 10% year-over-year. And EPS has grown even faster, up 14% in the same time period from $0.97 to $1.11. So, you can see that strong secular growth in Optical and Solar and our more Corning approach is offsetting weakness in the display, automotive and mobile consumer electronics markets.

總體而言，康寧在商業和技術上的表現都非常好。儘管存在所有暫時的宏觀挑戰，但我們實現了穩健的季度。上半年，我們的銷售額增加了 7 億多美元，同比增長超過 10%。每股收益增長更快，同期增長 14%，從 0.97 美元增至 1.11 美元。因此，您可以看到光學和太陽能的強勁長期增長以及我們更多的康寧方法正在抵消顯示器、汽車和移動消費電子市場的疲軟。

We expect to continue performing well in a challenging environment to close out another strong year. Our cohesive and focused portfolio provides us with a strategic resilience that is playing out well in the current environment and will serve us well in the future.

我們預計將在充滿挑戰的環境中繼續表現良好，以結束又一個強勁的一年。我們具有凝聚力和重點的產品組合為我們提供了一種戰略彈性，這種彈性在當前環境中表現良好，並將在未來為我們提供良好的服務。

Stepping back, we've been leading in the automotive and life science markets for 100 years, display for 80 years, telecommunications for 50 and mobile consumer electronics since the inception of smart devices. The basis of our ongoing success is our distinctive set of capabilities and long track record of life-changing and life-saving inventions. Now this is particularly important in times like the present.

退一步說，自智能設備問世以來，我們一直在汽車和生命科學市場領先 100 年、80 年顯示、50 年電信和移動消費電子產品。我們持續成功的基礎是我們獨特的能力和改變生活和拯救生命的發明的長期記錄。現在，這在像現在這樣的時代尤其重要。

We've made great progress building a more balanced and resilient company. We are structured to and focused on outperforming our markets consistently. Corning's deep relevance to secular trends along with our ability to drive more content into our markets over time will enable us to maintain our strength through this economic downturn and emerge stronger on the other side.

我們在建立一個更加平衡和有彈性的公司方面取得了很大進展。我們的結構和專注於始終如一地超越我們的市場。康寧與長期趨勢密切相關，以及我們隨著時間的推移將更多內容推向市場的能力，將使我們能夠在這次經濟衰退中保持實力，並在另一邊變得更強大。

As we look to both the immediate future and longer term, we're confident that our investments in our focused and cohesive portfolio together with our financial discipline will help us drive durable, profitable, multiyear growth. In fact, our R&d engine has never been stronger and a new generation of distinguished leaders has stepped up to drive us through our next exciting period of transformation.

當我們展望近期和長期時，我們相信，我們對專注和有凝聚力的投資組合的投資以及我們的財務紀律將幫助我們推動持久、有利可圖的多年增長。事實上，我們的研發引擎從未如此強大，新一代傑出的領導者已經挺身而出，推動我們度過下一個激動人心的轉型時期。

This quarter, we appointed Dr. Jaymin Amin as our Chief Technology Officer. A 25-year Corning veteran, Jaymin has worked with some of the company's most influential and innovative customers on groundbreaking advancements, including his work launching and commercializing Gorilla Glass Jaymin's leadership, technical expertise and experience with Corning's scientific capabilities will help take us to the next level of innovation.

本季度，我們任命 Jaymin Amin 博士為我們的首席技術官。作為在康寧工作 25 年的資深人士，Jaymin 曾與公司一些最具影響力和創新性的客戶合作，取得突破性進展，包括他的工作推出和商業化大猩猩玻璃 Jaymin 的領導力、技術專長和康寧科學能力的經驗將幫助我們走向下一個創新水平。

I'd also like to thank David Morris. I deeply appreciate his leadership and contributions over the years as one of our most accomplished technology leaders. He received his Ph.D. from MIT when he was only 23 years old. And he retired last month after nearly 50 years with the company. David has created a strong foundation that Jaymin will continue to build on, adding my confidence that Corning's greatest contributions are yet to come.

我還要感謝大衛·莫里斯。作為我們最有成就的技術領導者之一，我深深感謝他多年來的領導和貢獻。他獲得了博士學位。 23歲時從麻省理工學院畢業。他在公司工作了近 50 年後，於上個月退休。 David 為 Jaymin 將繼續發展奠定了堅實的基礎，讓我更加相信康寧的最大貢獻尚未到來。

Now let me turn the call over to Ed, who will share more details on our results, financial priorities and outlook.

現在讓我把電話轉給 Ed，他將分享有關我們的業績、財務優先事項和前景的更多細節。

Thank you, Wendell. Good morning, everyone. I'd like to preface my remarks today with 3 key takeaways on the quarter. We're executing well and successfully navigating the current environment. We're driving top line growth, improved profitability and strong cash flow with high single-digit year-over-year sales and EPS growth. And we're employing a highly disciplined approach toward investing for the long term. With that said, let's walk through the details on the quarter.

謝謝你，溫德爾。大家，早安。我想以本季度的 3 個關鍵要點作為我今天發言的序言。我們執行得很好，並且成功地駕馭了當前環境。我們正在推動收入增長，提高盈利能力和強勁的現金流，實現高個位數的同比銷售額和每股收益增長。我們正在採用高度自律的方法進行長期投資。話雖如此，讓我們來看看這個季度的細節。

Total company sales reached nearly $3.8 billion, growing 7% year-over-year. Highlights included sales growth of more than 20% in Optical and strong growth in Solar. We met our goal of improving gross margin and operating margin sequentially, driven by previously announced pricing actions across the organization. Gross margin grew 90 basis points and operating margin grew 120 basis points.

公司總銷售額達到近 38 億美元，同比增長 7%。亮點包括光學銷售額增長超過 20% 和太陽能的強勁增長。在之前宣布的整個組織的定價行動的推動下，我們實現了連續提高毛利率和營業利潤率的目標。毛利率增長 90 個基點，營業利潤率增長 120 個基點。

Net income was $489 million, up 7% year-over-year. And EPS was $0.57, which represents an 8% increase year-over-year. We generated $440 million of free cash flow in the quarter, keeping the company on pace for another year of strong cash generation. And we invested $353 million in CapEx.

淨收入為 4.89 億美元，同比增長 7%。每股收益為 0.57 美元，同比增長 8%。我們在本季度產生了 4.4 億美元的自由現金流，使公司保持了又一年強勁的現金產生速度。我們在資本支出上投資了 3.53 億美元。

I'd also like to comment on the impact of currency. We have actively hedged our foreign currency exposure over the past decade. This serves as an effective tool to reduce earnings volatility, protect cash flow, enhance our ability to invest and provide shareholder returns. Our largest exposure is to the yen, which has been weakening. We have most of next year hedged, and we expect our core rate to remain the same in 2023. We're pleased with our hedging program and the economic certainty it provides. We've received more than $2 billion in cash under our hedge contracts since their inception.

我還想評論一下貨幣的影響。過去十年，我們積極對沖外匯風險。這是降低盈利波動、保護現金流、增強我們的投資能力和為股東提供回報的有效工具。我們最大的敞口是日元，日元一直在走弱。我們對明年的大部分時間進行了對沖，我們預計我們的核心利率將在 2023 年保持不變。我們對我們的對沖計劃及其提供的經濟確定性感到滿意。自對沖合約成立以來，我們已收到超過 20 億美元的現金。

Overall, I'm pleased with the operational rigor our teams displayed during the quarter. We successfully raised prices to more appropriately share the impact of higher inflation with our customers. we successfully navigated extended COVID-19 lockdowns in China, a sharp correction in panel maker utilization in the display market, lower demand for smartphones and an additional temporary step down in China automotive production. And we're capitalizing on our market leadership and strong secular growth in Optical and Solar.

總體而言，我對我們團隊在本季度表現出的嚴格運營感到滿意。我們成功地提高了價格，以更恰當地與客戶分享更高通脹的影響。我們成功地應對了中國延長的 COVID-19 封鎖、面板製造商在顯示器市場的利用率急劇調整、對智能手機的需求下降以及中國汽車生產的額外暫時下降。我們正在利用我們在光學和太陽能領域的市場領導地位和強勁的長期增長。

Second quarter results reflect the benefits of our focused and cohesive portfolio, particularly the balance it provides.

第二季度業績反映了我們專注和有凝聚力的投資組合的好處，特別是它提供的平衡。

Now let's go through the segments. In Optical Communications, sales grew 22% year-over-year reaching $1.3 billion for the second quarter. Year-over-year sales growth was driven by 5G, broadband and the cloud. Net income was $182 million, up 23% year-over-year primarily driven by strong volume and price increases. We believe we're in the early phases of a multiyear build cycle across multiple segments in the passive optical market. We're responding to this demand by ramping up production and opening new facilities. As always, we de-risk these investments by requiring meaningful commitments from customers, often including funding before beginning construction.

現在讓我們來看看這些片段。在光通信領域，第二季度銷售額同比增長 22%，達到 13 億美元。 5G、寬帶和雲推動了銷售額的同比增長。淨收入為 1.82 億美元，同比增長 23%，主要受銷量和價格強勁增長的推動。我們相信，我們正處於無源光學市場多個細分市場的多年構建週期的早期階段。我們通過提高產量和開設新設施來響應這一需求。與往常一樣，我們通過要求客戶做出有意義的承諾來降低這些投資的風險，通常包括在開始建設之前提供資金。

In the second quarter, Display Technology sales were $878 million, down 8% sequentially. Panel makers have been reducing their utilization rates for the last few quarters. In June, we saw a significant decline in panel maker production versus April and May. And our volume declined in line with this change and the market. Importantly, glass price was up slightly sequentially. This, coupled with solid execution, resulted in net income declining 3% sequentially, less than half the sales decline.

第二季度，顯示技術銷售額為 8.78 億美元，環比下降 8%。面板製造商在過去幾個季度一直在降低其利用率。 6 月，我們看到面板製造商的產量與 4 月和 5 月相比顯著下降。我們的銷量隨著這種變化和市場而下降。重要的是，玻璃價格環比小幅上漲。再加上穩健的執行，導致淨收入環比下降 3%，不到銷售額下降的一半。

In the third quarter, we expect June's low panel maker production levels to continue and our volume to decline in line with the market and lower average utilization, resulting in our glass volume down mid-teens sequentially. We expect third quarter glass price to be consistent with the second quarter.

在第三季度，我們預計 6 月份面板製造商的低產量水平將繼續，我們的產量將與市場同步下降，平均利用率下降，導致我們的玻璃產量環比下降 10 倍左右。我們預計第三季度玻璃價格將與第二季度保持一致。

The factors we use to assess the pricing environment in the display glass market continue to support a favorable pricing environment. First is glass supply-demand balance. Currently, glass makers are taking tanks off-line for maintenance and repairs after an extended period of glass tightness. We are actively managing tank repairs and restarts to align our supply to demand. These actions result in lower glass capacity in the market. Additionally, after running flat out for so long, we need to replenish our inventory towards optimal levels to reduce excess logistics costs.

我們用來評估顯示玻璃市場定價環境的因素繼續支持有利的定價環境。一是玻璃供需平衡。目前，玻璃製造商在長時間的玻璃密封後，正在讓儲罐下線進行維護和維修。我們正在積極管理儲罐維修和重新啟動，以使我們的供應與需求保持一致。這些行動導致市場上的玻璃產能下降。此外，在用完這麼長時間後，我們需要將庫存補充到最佳水平，以減少多餘的物流成本。

And lastly, glass maker profitability also supports favorable pricing. In this inflationary environment, it is challenging for glass makers who have high fixed costs to maintain profitability during periods of low volume. Additionally, our customers depend on us for our market-leading supply reliability, enabling us to build on our strong competitive position. So overall, we feel good about our execution against our goal to stabilize returns in display. The pricing environment is stable. We have maintained our pricing, and when volume returns, our sales and profitability will improve.

最後，玻璃製造商的盈利能力也支持有利的定價。在這種通脹環境下，對於固定成本較高的玻璃製造商來說，在產量低迷時期保持盈利是一項挑戰。此外，我們的客戶依賴於我們市場領先的供應可靠性，使我們能夠鞏固我們強大的競爭地位。因此，總體而言，我們對我們的執行感到滿意，因為我們實現了穩定展示回報的目標。定價環境穩定。我們保持定價，當銷量回升時，我們的銷售額和盈利能力將會提高。

In Specialty Materials, sales were consistent with a strong second quarter 2021. Net income was $91 million, up 12% year-over-year. We achieved these results despite the smartphone and IT markets being down. Our more Corning approach, product leadership and ongoing collaboration with industry leaders are enabling our outperformance in this market. Specifically, we maintained revenue and profitability driven by the adoption of our premium cover materials.

在特種材料方面，銷售額與 2021 年第二季度的強勁表現一致。淨收入為 9100 萬美元，同比增長 12%。儘管智能手機和 IT 市場低迷，我們還是取得了這些成果。我們更多的康寧方法、產品領先地位以及與行業領導者的持續合作使我們在這個市場上表現出色。具體而言，我們通過採用優質封面材料保持了收入和盈利能力。

We also continue to benefit from the strength of the semiconductor equipment industry. In fact, we expect to see continued investments in the industry to meet rapidly growing demand and to support increased stability in the supply chain. To ensure we are prepared to capture growth, we just announced an expansion of our advanced optics operations in New York State. And as Wendell mentioned, we expect Specialty Materials sales growth in the back half driven by customer product launches.

我們還繼續受益於半導體設備行業的實力。事實上，我們預計將繼續對該行業進行投資，以滿足快速增長的需求並支持供應鏈的穩定性增加。為了確保我們準備好迎接增長，我們剛剛宣布擴大我們在紐約州的先進光學業務。正如溫德爾所說，我們預計下半年特種材料的銷售增長將受到客戶產品發布的推動。

In Environmental Technologies, second quarter auto production experienced constraints due to prolonged chip shortages, the Russia-Ukraine war and COVID-19 lockdowns in China. As a result, second quarter sales were $356 million, down 13% both sequentially and year-over-year. In the automotive industry, this will be the third year in a row production has been unable to meet end market demand. Since 2019, auto markets have declined around 16%.

在環境技術領域，由於長期的芯片短缺、俄烏戰爭和中國的 COVID-19 封鎖，第二季度汽車生產受到限制。因此，第二季度銷售額為 3.56 億美元，環比和同比均下降 13%。在汽車行業，這將是連續第三年產量無法滿足終端市場需求。自 2019 年以來，汽車市場下跌了約 16%。

In contrast, we have outperformed the market and our sales were up about 5% over the same period. We're pursuing content opportunities that generate sales beyond end market demand, such as additional adoption of GPFs in new regions. We expect an uptick in sales in the third quarter, driven primarily by a resumption of auto production in China following COVID lockdowns. We remain prepared to serve demand globally as supply constraints ease and auto production increases.

相比之下，我們的表現優於市場，同期我們的銷售額增長了約 5%。我們正在尋求能夠產生超出終端市場需求的銷售的內容機會，例如在新地區額外採用 GPF。我們預計第三季度銷售額將上升，這主要是由於在 COVID 封鎖後中國恢復了汽車生產。隨著供應限制的緩解和汽車產量的增加，我們仍準備好滿足全球需求。

In Life Sciences, sales of $312 million remained consistent year-over-year and sequentially, and net income of $37 million was down. Lower demand for COVID-related products was offset by growth in research and bioproduction products. Additionally, COVID lockdowns in China impacted sales and profitability. Looking ahead, we expect to see continued growth in research and bioproduction, and we're well positioned to meet that demand with recent capacity investments designed to improve efficiency and enable us to better support global customers.

在生命科學領域，銷售額為 3.12 億美元，同比和環比保持一致，淨收入下降了 3700 萬美元。研究和生物生產產品的增長抵消了對 COVID 相關產品的需求下降。此外，中國的 COVID 封鎖影響了銷售和盈利能力。展望未來，我們預計研究和生物生產將持續增長，我們已準備好通過近期旨在提高效率並使我們能夠更好地支持全球客戶的產能投資來滿足這一需求。

Finally, in Hemlock and emerging growth businesses, sales reached $418 million, a 45% increase year-over-year and an 11% increase sequentially. This strong performance was largely driven by our production ramp to meet new long-term solar take-or-pay contracts.

最後，在 Hemlock 和新興增長業務中，銷售額達到 4.18 億美元，同比增長 45%，環比增長 11%。這種強勁的表現主要是由於我們的產量增加以滿足新的長期太陽能照付不議合同。

During the quarter, Corning Pharmaceutical Technologies also contributed to strong sales as we saw continued adoption of our pharmaceutical packaging solutions for critical drugs. And Automotive Glass Solutions delivered year-over-year growth as well. During the quarter, Continental recognized the business as one of its suppliers of the year for our auto-grade Corning Gorilla Glass technology, another proof point on our progress toward a $100 per car opportunity.

在本季度，康寧製藥技術公司也為強勁的銷售做出了貢獻，因為我們看到我們繼續採用我們的關鍵藥物藥品包裝解決方案。汽車玻璃解決方案也實現了同比增長。在本季度，大陸集團將我們的汽車級康寧大猩猩玻璃技術評為年度供應商之一，這是我們在實現每輛車 100 美元機會方面取得進展的又一證據。

In sum, the multiple growth drivers and our market leadership across our portfolio create an inherent resiliency that enables us to consistently outperform our markets.

總而言之，多種增長驅動因素和我們在投資組合中的市場領導地位創造了一種內在的彈性，使我們能夠始終超越我們的市場。

Now turning to our outlook. For the third quarter, we expect sales roughly consistent with the second quarter in the range of $3.65 billion to $3.85 billion. We expect continued strong sales in Optical Communications, Hemlock's solar products and specialty materials to offset lower display volume, which is expected to be down mid-teens from the second quarter as I noted earlier. We expect EPS in the range of $0.51 to $0.55 for the third quarter. While we expect the benefits of our pricing actions to continue, the lower volume in display will impact profitability.

現在轉向我們的前景。對於第三季度，我們預計銷售額與第二季度大致持平，在 36.5 億美元至 38.5 億美元之間。我們預計光通信、Hemlock 的太陽能產品和特種材料的持續強勁銷售將抵消較低的顯示量，正如我之前指出的那樣，預計顯示量將比第二季度下降 10 點左右。我們預計第三季度每股收益在 0.51 美元至 0.55 美元之間。雖然我們預計我們的定價行動的好處將繼續，但較低的展示量將影響盈利能力。

Our most likely outcome for the full year is to slightly exceed $15 billion in sales as we shared with you in April. We now expect sales to be up 6% to 8%, and we expect to grow EPS in line with sales. Our guidance factors in a range of probabilities for the market challenges that we've outlined this morning.

正如我們在 4 月與您分享的那樣，我們全年最有可能的結果是銷售額略高於 150 億美元。我們現在預計銷售額將增長 6% 至 8%，我們預計每股收益將與銷售額同步增長。我們的指導因素考慮了我們今天上午概述的一系列市場挑戰的可能性。

As I wrap up my remarks today, I'll end it by saying we're very pleased with the results of the quarter and the first half of the year. We're growing profitably. And we remain highly disciplined in our approach to investment decisions while maintaining a strong balance sheet and delivering solid free cash flow. This gives us the ability and flexibility to address evolving market conditions. We're also expanding capacity to support committed customer demand, all while carefully monitoring the external environment to pace appropriately. We're confident in the many levers at our disposal to manage through any environment and come out the other side stronger while advancing our long-term growth initiatives.

在我今天結束我的發言時，我將說我們對本季度和上半年的業績感到非常滿意。我們正在盈利增長。我們在投資決策方法上保持高度自律，同時保持強大的資產負債表並提供穩定的自由現金流。這使我們有能力和靈活性來應對不斷變化的市場條件。我們還在擴大產能以支持承諾的客戶需求，同時仔細監控外部環境以適當調整步伐。我們對我們掌握的許多槓桿充滿信心，可以在任何環境中進行管理，並在推進我們的長期增長計劃的同時變得更強大。

With that, I'll turn it back over to Ann for Q&A.

有了這個，我會把它交給安進行問答。

Thanks, Ed. Crystal, we're ready for the first question.

謝謝，埃德。水晶，我們準備好回答第一個問題了。

(Operator Instructions) And our first question will come from Steven Fox from Fox Advisors.

（操作員說明）我們的第一個問題將來自 Fox Advisors 的 Steven Fox。

Can you hear me?

你能聽到我嗎？

Yes, please, Steve.

是的，請史蒂夫。

I guess I was wondering if you can go back and talk about the Optical business a little bit more. It's obviously got a lot of new product momentum and has had extremely strong growth. Some of your carrier customers have recently called out some weakness on subscribers and other consumer demand. How do we think about sort of Optical maybe not just for the next couple of quarters, but say, if we think about it for the next year in the face of macro pressures? How confident are you in its ability to continue to grow?

我想我想知道你是否可以回去多談談光學業務。它顯然有很多新產品的勢頭，並且增長非常強勁。您的一些運營商客戶最近指出了訂戶和其他消費者需求方面的一些弱點。我們如何看待光學可能不僅僅是在接下來的幾個季度，而是說，如果我們在面對宏觀壓力的情況下考慮明年的情況？您對其繼續增長的能力有多大信心？

Thanks for the question, Steve. Yes, we've seen all those comments. And of course, we talk directly to the leadership of all of our major carrier customers. Here's what we're hearing, and then let's just step back and talk about just what some of the other macro forces are behind it. So what we're hearing from them is their investment in fiber optics is their top strategic priority. And so that even as they take a look at what they can do with different elements of their capital spending plans and their investment plans that they're prioritizing their investment in our product sets and they're actually asking us to commit to supply more into next year and beyond.

謝謝你的問題，史蒂夫。是的，我們已經看到了所有這些評論。當然，我們直接與所有主要運營商客戶的領導層交談。這就是我們所聽到的，然後讓我們退後一步，談談它背後的其他一些宏觀力量。因此，我們從他們那裡聽到的是，他們對光纖的投資是他們的首要戰略重點。因此，即使他們考慮如何利用其資本支出計劃和投資計劃的不同元素做些什麼，他們也會優先考慮對我們產品集的投資，他們實際上是在要求我們承諾提供更多明年及以後。

So we're in the midst of that type of discussion with our customers. It's a little early to tell exactly where that all will turn out, but we'll be public as that gets a little bit closer. So I would say, right now, all of our demand signals continue to be quite robust. And if we could make more fiber and cable, we could sell more fiber and cable. And we're seeing continued strong demand as we look into next year, sir. Did that answer your question, Steven?

因此，我們正在與客戶進行此類討論。現在確切地說出這一切會發生在哪裡還為時過早，但隨著時間越來越近，我們將公開。所以我想說，現在，我們所有的需求信號仍然非常強勁。如果我們能生產更多的光纖和電纜，我們就可以銷售更多的光纖和電纜。先生，展望明年，我們看到需求持續強勁。這回答了你的問題嗎，史蒂文？

It did. And then I just probably should have thrown this into the question, which is, could you just maybe expand that window to talk about cloud demand as well? And I'll pass it on from there.

它做了。然後我可能應該把這個問題提出來，也就是說，你是否可以擴大這個窗口來討論云需求？我會從那里傳下去。

In cloud, they continue to see pretty strong revenue performance in cloud, as I'm sure you have seen. And in general, the pandemic put some of those major infrastructure programs. It's a little bit behind where they would like them. So we're continuing to see demand there that's very robust. The main thing is providing any volatility in our cloud-based demand tends to be their ability to actually get their installations done on time to actually get all the labor that they need, to actually get the construction going.

在雲計算領域，他們繼續看到相當強勁的雲計算收入表現，我相信你已經看到了。總的來說，大流行病使其中一些主要的基礎設施計劃得以實施。這有點落後於他們想要的位置。因此，我們繼續看到那裡的需求非常強勁。主要是在我們基於雲的需求中提供任何波動性往往是他們有能力實際按時完成安裝，以實際獲得他們需要的所有勞動力，以實際進行建設。

And it also plays very nicely into some of our new innovations that use tremendously less labor. And so that's one of the reasons we're seeing strong take-up of our new innovations in cloud. So although cloud is -- will always go with sort of how can they run their construction projects, but overall, we're seeing nothing but a strong demand signal out of our customers there.

它也很好地融入了我們的一些新創新，這些創新使用的勞動力大大減少。這就是我們看到我們在雲中的新創新得到大力採用的原因之一。因此，儘管云總是會伴隨著他們如何運行他們的建設項目，但總的來說，我們只看到那裡的客戶發出強烈的需求信號。

Next question will come from Wamsi Mohan from Bank of America.

下一個問題將來自美國銀行的Wamsi Mohan。

Yes. I was wondering if you can update us around your assumption for TV units for '22 and maybe initial look into '23. And are you expecting growth or decline of glass at retail at this point given what's happening at panel makers? And if I could, on Specialty Materials' profitability, if we look at that both on a year-on-year or on a sequential basis or roughly flat revenues, you have significant improvement in profitability and I was wondering if you could talk about the drivers there.

是的。我想知道您是否可以根據您對 22 年電視單元的假設更新我們的信息，並可能初步了解 23 年。鑑於面板製造商的情況，您預計此時零售玻璃的增長或下降？如果可以的話，關於特種材料的盈利能力，如果我們按年或連續或大致持平的收入來看，你的盈利能力有顯著提高，我想知道你是否可以談談那裡的司機。

On Display, as you would have heard in our opening, we are -- we expect our volume to be in line with where our panel makers are taking their utilization and down some 15% in quarter 3. As we take a look at retail, what we say is we'd expect TV units to probably be down this year now especially given what has happened with the China shutdowns.

On Display，正如您在我們的開幕式上所聽到的那樣，我們預計我們的銷量將與我們的面板製造商的利用率保持一致，並在第三季度下降約 15%。當我們看零售業時，我們所說的是，我們預計今年電視單位可能會下降，特別是考慮到中國停工所發生的情況。

But it could be flat. And I think it's just too early for us to talk about next year. This is a pretty significant correction that we're working our way through. And the real critical spot for us is we want to be able to continue to execute our strategy and have that our price be stable and our market position stay stable. And then we'll be there for as television unit demand and panel maker utilization comes up, we'll see our profitability climb in line.

但它可能是平的。我認為現在談論明年還為時過早。這是一個非常重要的修正，我們正在努力解決。對我們來說真正的關鍵點是我們希望能夠繼續執行我們的戰略，讓我們的價格保持穩定，我們的市場地位保持穩定。然後，隨著電視單元需求和麵板製造商利用率的提高，我們將看到我們的盈利能力不斷攀升。

And I'll take your second question, Wamsi, on Specialty Materials. So a couple of things. One, first, I think we're performing well in this segment, right? The market is down, and we're flattish. It's a great more Corning story for us. So we're outperforming the market there.

我會回答你的第二個問題，Wamsi，關於特種材料。所以有幾件事。一，首先，我認為我們在這一領域表現良好，對吧？市場下跌，我們持平。這對我們來說是一個更棒的康寧故事。所以我們的表現優於那裡的市場。

And then secondly, I think on the profitability side, it's primarily about the continued adoption of our new cover materials and us adding content into the market. That's really what's driving the profitability relative to the flat sales.

其次，我認為在盈利方面，這主要是關於繼續採用我們的新封面材料以及我們向市場添加內容。這確實是推動相對於固定銷售額的盈利能力的原因。

And our next question will come from Samik Chatterjee from JPMorgan.

我們的下一個問題將來自摩根大通的 Samik Chatterjee。

I guess my question was just on the 4Q guide here, the implied earnings guide does represent a recovery from the 3Q levels. And I'm just curious about what's the driver for the increase in earnings going from 3Q to 4Q that you're embedding? And I would assume that you're expecting display to contribute to that just given the sort of relevance of the segment itself. And hence, what's driving the expectation that display rebounds from 3Q to 4Q as well?

我想我的問題只是在這裡的第四季度指南，隱含的收益指南確實代表了第三季度水平的複蘇。我只是想知道您嵌入的從第三季度到第四季度收益增加的驅動因素是什麼？並且我假設您期望顯示對這一點做出貢獻，只是考慮到細分本身的相關性。因此，是什麼推動了顯示器從第三季度到第四季度的反彈預期？

Thanks, Samik. So I think maybe stepping back a little bit on the guide, if I think about both the third quarter and the full year, what we've tried to do is reflect the highest probability range that we can for sort of all the dynamics we're seeing across all of our markets. And as we talked about in display, it's -- there was a pretty sharp correction down in June. We're expecting that to continue into the third quarter, but we have a range of how we see that playing out.

謝謝，薩米克。所以我認為可能會在指南上稍微退後一點，如果我考慮第三季度和全年，我們試圖做的是反映我們可以為所有動態提供的最高概率範圍'重新看到我們所有的市場。正如我們在展示中談到的那樣，6 月份出現了相當大的回調。我們預計這種情況會持續到第三季度，但我們有一系列的看法。

And then the same thing holds true related to demand in China, which obviously impacts automotive in the back half of the year. It'll impact potentially smartphones and maybe even life sciences, right? So if you think about our guide, there's a high end and a low end and sort of our view of the most probable outcome. And so yes, we're expecting the fourth quarter to probably be a little bit better than the third quarter depending on where you pick within that range we've given you for the third quarter. And it's certainly possible if sort of things play out as they normally do, you would see an uptick in display. That's definitely in the range of probabilities in terms of how we've thought about it.

中國的需求也是如此，這顯然會影響下半年的汽車行業。它可能會影響智能手機，甚至可能影響生命科學，對吧？因此，如果您考慮我們的指南，就會有高端和低端以及我們對最可能結果的看法。所以是的，我們預計第四季度可能會比第三季度好一點，具體取決於您在我們為第三季度提供的範圍內選擇的位置。如果某些事情像往常一樣進行，那肯定是有可能的，你會看到顯示的上升。就我們的想法而言，這絕對是在概率範圍內。

And our next question will come from Rod Hall from Goldman Sachs.

我們的下一個問題將來自高盛的羅德霍爾。

I wanted to start with a high-level question for Wendell, and then I have a question on solar as well. Just Wendell, what we've seen in consumer is deterioration at the low end and maybe the midrange as well, a little bit the smartphone industry, et cetera. I'm wondering if you think that the higher-end consumer, do you see any evidence that, that is not still hanging in there? Or what are your expectations for the higher-end consumer in the back end of the year and some of your exposure there? And then I'll follow up with the solar question after that answer, if it's okay.

我想從溫德爾的一個高級問題開始，然後我還有一個關於太陽能的問題。只是溫德爾，我們在消費者中看到的是低端市場的惡化，也許還有中端市場，智能手機行業等等。我想知道你是否認為高端消費者，你有沒有看到任何證據表明，那還沒有掛在那裡？或者你對今年年底的高端消費者以及你在那裡的一些曝光有什麼期望？如果可以的話，我會在回答完這個問題後跟進太陽能問題。

Rod, I would agree with your observation. I think it's insightful observation that the more premium end is doing better than the low end, and the largest deterioration has been in that piece of the market. We think that relative outperformance will be there. But we don't -- like in our guide, we're not reflecting a belief that it's just going to be by volatile, right? We think everybody is going to get impacted and it's a timing question. But you'll still have relative outperformance in the premium end. And that's the way we look at it. Is that the question you were asking about?

羅德，我同意你的觀察。我認為這是一個有見地的觀察，即高端市場的表現要好於低端市場，而最大的惡化發生在該市場。我們認為會出現相對優異的表現。但是我們沒有——就像在我們的指南中一樣，我們沒有反映這樣一種信念，即它只會變得不穩定，對吧？我們認為每個人都會受到影響，這是一個時間問題。但在高端市場，你仍然會有相對出色的表現。這就是我們看待它的方式。你問的是這個問題嗎？

Yes. I think I just was curious to see whether you thought -- because you, of course, have a lot more data sometimes than we do, whether that high end would follow the low end or I think it probably will, but I was just curious what your opinion of that was so.

是的。我想我只是想看看你是否想過——因為你，當然，有時比我們擁有更多的數據，高端是否會跟隨低端，或者我認為它可能會，但我只是好奇你對此有何看法。

Yes, we're seeing the impact of that being below where we would have thought it would be really driven, I think, primarily by this combination of China shutdowns and inflation. So it's below what we would have normally expected it to be. But it is -- we're still seeing outperformance, Rod.

是的，我們看到它的影響低於我們認為它會真正受到驅動的地方，我認為，主要是由於中國停工和通貨膨脹的結合。所以它低於我們通常預期的水平。但它是——我們仍然看到了出色的表現，羅德。

Right. Okay. Well. And then on solar, we had estimated about 1/3 of the Hemlock and emerging growth business revenue was Solar last year. And I'm wondering, maybe Ed or Wendell, if you guys could double-click on that a little bit for us this year, talk about what you think the proportion of those total revenues might look like for Solar this year. And I'm also curious how gated that is by supply. In other words, are you just selling everything you can make. Can you make -- could you sell more if you were able to turn on even more supply? Just curious kind of how that all is shaping up right now.

正確的。好的。出色地。然後在太陽能方面，我們估計去年 Hemlock 和新興增長業務收入的 1/3 是太陽能。我想知道，也許是 Ed 或 Wendell，如果你們今年可以為我們雙擊一下，談談你們認為 Solar 今年在總收入中所佔的比例。我也很好奇供應是如何控制的。換句話說，你只是在賣你能做的一切嗎？你能製造——如果你能打開更多的供應，你能賣得更多嗎？只是好奇現在這一切是如何形成的。

Yes. Thanks, Rod. So on Solar, I think the way to think about it is through the year last year and into sort of the second quarter of this year, we continue to ramp our solar sales. We were originally selling out of inventory, and we sort of sold all that out and then we started production back up in the fourth quarter. And so it has become a greater part of the sales in Hemlock and emerging growth segment.

是的。謝謝，羅德。所以關於太陽能，我認為考慮它的方式是從去年到今年第二季度，我們繼續提高我們的太陽能銷售量。我們最初是賣光了庫存，然後我們把所有的東西都賣光了，然後我們在第四季度開始恢復生產。因此，它已成為 Hemlock 和新興增長領域銷售額的重要組成部分。

In addition to that, what I would say is we are getting to be capacity constrained. I mean we're selling for the most part, what we can make, we'll get a little better at making and we'll have a little more capacity in the back half and as we go into 2023, but not a lot of capacity. And I think the important thing to think (inaudible) we'll get a little better at making and we'll have a little more capacity in the back half and as we go into 2023, but not a lot of capacity.

除此之外，我要說的是我們的能力越來越有限。我的意思是我們大部分都在銷售，我們可以製造什麼，我們會做得更好，我們將在後半部擁有更多的產能，隨著我們進入 2023 年，但不會很多容量。而且我認為要考慮的重要事情（聽不清）我們將在製造方面做得更好，並且我們將在後半部分擁有更多的容量，並且隨著我們進入 2023 年，但容量不會很大。

And I think the important thing to think about is we've signed customers up for multiyear take-or-pay contracts to essentially sell out that capacity. So we feel really good about that demand and our ability to supply it. We have more capacity that we could turn on. It would be a decision we'd have to make based on the dynamics in the market and our ability to continue to get customers to take that volume either by giving us cash or signing up for long-term commitments.

而且我認為要考慮的重要一點是，我們已經與客戶簽訂了多年的照付不議合同，以基本上售罄該容量。因此，我們對這種需求和我們的供應能力感到非常滿意。我們有更多的容量可以打開。這將是我們必鬚根據市場動態以及我們通過給我們現金或簽署長期承諾來繼續讓客戶接受這一數量的能力做出的決定。

But I just -- with energy prices where they are, wouldn't it makes sense to -- it would seem solar demand is only going to go one way. Would you agree with that?

但我只是——在能源價格不變的情況下，這難道不是很有意義——太陽能需求似乎只會走一條路。你同意嗎？

Yes. I think the good -- the demand is high. I do agree. I think we're cautious in this space, and we want to make sure that we've got good commitment for any additional demand that we would turn on. And we'll update you as that plays itself out in the back half of this year and into 2023.

是的。我認為好的 - 需求很高。我同意。我認為我們在這個領域持謹慎態度，我們希望確保我們對我們將開啟的任何額外需求都有良好的承諾。我們會在今年下半年和 2023 年為您提供最新信息。

Just to add some color there. I think your instincts are right that you have a bold case for Solar. What makes us really insist on committed demand from our customers and to make sure that our customers are taking on more of the risk under their shareholders than ours would take, it is because geopolitics also plays a role. So energy always -- as geopolitics play a role, and solar is no different. And so given that piece is why we want to make sure that if we add -- if we bring on more capacity that our shareholders basically are getting a nice free shot on goal.

只是為了在那裡添加一些顏色。我認為您的直覺是正確的，您對 Solar 有一個大膽的案例。是什麼讓我們真正堅持客戶的承諾需求，並確保我們的客戶承擔的股東風險比我們承擔的風險更大，這是因為地緣政治也發揮了作用。所以能源總是——因為地緣政治發揮作用，太陽能也不例外。因此，鑑於這一點，我們要確保如果我們增加 - 如果我們帶來更多的能力，我們的股東基本上可以獲得一個不錯的免費射門機會。

And our next question will come from Josh Spector from UBS.

我們的下一個問題將來自瑞銀的 Josh Spector。

Sorry, for some reason, It cut out. I didn't hear my name. Just as a high level, curious, I mean you seem relatively bullish on Optical. Maybe those expectations are roughly unchanged. Clearly, display expectations moved a bit. And the rest of the portfolio, would you say your second half expectations have changed significantly? Or are they relatively similar to how you saw things a few months ago and trying to think about that relative in terms of the medium- to longer-term growth for some of those segments as well?

對不起，由於某種原因，它被切斷了。我沒有聽到我的名字。就像一個高水平的，好奇的，我的意思是你似乎相對看好光學。也許這些期望大致沒有變化。顯然，顯示器的期望發生了一些變化。其餘的投資組合，你會說你對下半年的期望發生了顯著變化嗎？還是它們與您幾個月前的看法相對相似，並試圖從其中一些細分市場的中長期增長方面考慮這個相對因素？

Yes. I would say the biggest change probably going back a quarter is what happened in China with respect to lockdowns in the second quarter. That impacted demand and the supply chain in that part of the world significantly. And obviously, it impacted us. And I think in the range of how we see the back half, a lot of that is what happens in China across the board, sort of in all of our markets for the most part, other than optical.

是的。我想說，可能要追溯到一個季度的最大變化是中國在第二季度的封鎖方面發生的事情。這對世界該地區的需求和供應鏈產生了重大影響。顯然，它影響了我們。而且我認為在我們如何看待後半部分的範圍內，其中很多都是在中國全面發生的事情，在大多數情況下，在我們所有的市場中，除了光學。

And I would say that there aren't any significant changes other than that. The one thing I'd add is in auto, in general, we were expecting a higher auto market at the beginning of the year, both in China, but in totality. And I think our view of that market is that it's still constrained. We think end market demand is there, but the industry is constrained and therefore, our expectations are a little lower than maybe they were a quarter ago.

我會說除此之外沒有任何重大變化。我要補充的一件事是汽車，總的來說，我們預計今年年初的汽車市場會更高，無論是在中國，還是在總體上。我認為我們對該市場的看法是它仍然受到限制。我們認為終端市場需求存在，但該行業受到限制，因此，我們的預期可能比一個季度前略低。

And I'd say all the trends, the big secular trends that we are behind and we're investing up for as well as sort of the more Corning strategy that looks to us like it is holding up quite well even in these sort of challenging macro environment and we would expect that to continue. There's other little things that are moving around in our range and have to do with our ability to bring up capacity. Optical, we're running maybe about a quarter behind on some of the capacity that we would have thought we would have had available to sell this year, and that's now -- that growth will now push into next year. There's a lot of puts and takes. But in total, we're feeling quite good about where we placed our bets and the efficacy of our content-driven strategy.

我想說的是所有的趨勢，我們落後的大長期趨勢，我們正在投資，以及在我們看來，即使在這些挑戰中，康寧的戰略也能很好地維持下去宏觀環境，我們預計這種情況會持續下去。在我們的範圍內還有其他一些小事情正在發生變化，這與我們培養能力的能力有關。光學，我們可能比我們認為今年可以出售的一些容量落後了大約四分之一，而現在 - 這種增長現在將推向明年。有很多投入和投入。但總的來說，我們對我們的賭注和內容驅動策略的有效性感覺非常好。

And we'll take our next question from Mehdi Hosseini from SIG.

我們將向 SIG 的 Mehdi Hosseini 提出下一個問題。

Yes. I wanted to go back to the display. And I want to get your thoughts on your customers' ability to produce panel, especially since panel prices are a big cash costs. Why shouldn't the glass market enable lower costs and improve affordability by lowering key material costs like glass, unless you tell me that the market is not elastic. Any thoughts here would be great. And I have a follow-up.

是的。我想回到顯示器。我想了解您對客戶生產面板能力的看法，特別是因為面板價格是一筆巨大的現金成本。為什麼玻璃市場不應該通過降低玻璃等關鍵材料成本來降低成本並提高可承受性，除非你告訴我市場沒有彈性。這裡的任何想法都會很棒。我有一個後續行動。

Well, it's a good question. Our main contribution to panel makers' cost structure is the ability of our innovations to dramatically lower the overall production cost of panel making. For instance, Gen 10.5 facility can manufacture panels roughly at a 30% lower cost for large-sized TVs than the Gen 8.5 that preceded it. And so for us to deliver those type of innovations also requires us to invest and we require a return on that investment. So we believe glass is already a great buy for our customers. And the best way that we can help them be successful is to continue to be very reliable suppliers and continue to innovate and help the fact that they add way more costs downstream of us than the cost that re-represented their total. And as we can improve their productivity, life gets better for them.

嗯，這是個好問題。我們對面板製造商成本結構的主要貢獻是我們的創新能夠顯著降低面板製造的整體生產成本。例如，與之前的 8.5 代相比，10.5 代工廠可以以大約 30% 的成本生產大尺寸電視面板。因此，對於我們來說，提供這些類型的創新也需要我們進行投資，並且我們需要投資回報。因此，我們相信玻璃對我們的客戶來說已經是一個很好的選擇。我們可以幫助他們成功的最好方法是繼續成為非常可靠的供應商，繼續創新並幫助他們在我們下游增加的成本比重新代表他們總成本的成本要多得多。隨著我們可以提高他們的生產力，他們的生活也會變得更好。

Price elasticity-wise, panel prices are already plenty low. And we would expect that to help flow into television set manufacturers and that to, in turn, help activate end consumers who are quite sensitive to pricing. But nothing we can do is going to make a significant delta in that overall market price elasticity, sir.

價格彈性方面，面板價格已經很低了。我們預計這將有助於流入電視機製造商，進而有助於激活對定價非常敏感的最終消費者。但是，先生，我們無法做任何事情來使整體市場價格彈性顯著增加。

Got it. And just a quick follow-up on cash flow. Inventories are up Q-over-Q and year-over-year. Should I assume that the 110 days of inventory would trend down into the second half of the calendar year?

知道了。並且只是對現金流的快速跟進。庫存環比和同比增長。我是否應該假設 110 天的庫存將趨於下降到日曆年的下半年？

Yes. Mehdi, I think a couple of things to think about. First, it's a difficult supply chain environment. We want to make sure we can supply our customers. So we probably have a little more inventory than we might otherwise have. That will eventually go back to normal. Hard to call the timing on that.

是的。 Mehdi，我想有幾件事要考慮。首先，這是一個艱難的供應鏈環境。我們要確保我們可以為我們的客戶提供服務。因此，我們的庫存可能比其他情況下要多一些。這最終會恢復正常。很難稱其為時機。

I think the second thing is, if you think about the inflationary impacts we see and we talk about them mostly in the context of our P&L, they also sit in inventory, right? So you have higher raw material costs and higher cost to produce. And so some of the higher balance sheet you see the higher dollars is related to inflation as well. Now that gets passed along in the form of price, so the profitability is the same, but you're carrying a little bit more of that on your balance sheet.

我認為第二件事是，如果您考慮我們看到的通脹影響，並且我們主要在損益表的背景下談論它們，它們也存在於庫存中，對嗎？所以你有更高的原材料成本和更高的生產成本。因此，您看到的一些較高的資產負債表也與通貨膨脹有關。現在它以價格的形式傳遞，所以盈利能力是一樣的，但你的資產負債表上多了一點。

And our next question will come from Martin Yang from Oppenheimer.

我們的下一個問題將來自奧本海默的 Martin Yang。

So can you maybe give us a bit more insight into Specialty Materials, especially the part excluding advanced semiconductor material? Have you observed a more of a consistent increase of mix, either for new products or exposure to premier customers in the past 2 years for Specialty Materials?

那麼您能否讓我們更深入地了解特種材料，尤其是不包括先進半導體材料的部分？在過去的 2 年中，您是否觀察到新產品或向主要客戶展示特種材料的組合更加持續增長？

Yes. I think you've correctly identified the dynamic . It is sort of our content-driven strategy has been in mobile consumer electronics, like a number of our markets, is not just to count on people buying more stuff, buying more phones, but to put more Corning content into the smart devices that people are already buying. And so each of those new innovations tend to have more value to it and, therefore, add to our content. And that's why despite a flat to down smartphone market, we've grown our revenues some 40% or more is it's basically that content strategy.

是的。我認為您已經正確識別了動態 .這是我們在移動消費電子產品中的內容驅動戰略，就像我們的許多市場一樣，不僅僅是指望人們購買更多的東西，購買更多的手機，而是將更多的康寧內容放入人們的智能設備中已經在購買了。因此，這些新創新中的每一個往往都具有更大的價值，因此會增加我們的內容。這就是為什麼儘管智能手機市場持平，但我們的收入增長了大約 40% 或更多，這基本上是內容策略。

Got it. I think there are a couple of products in the past we can sort of point to, to support this view. But let's say, looking into the next 2 years, do you see a more of a regular scheduled release of new products that will carry on the trend?

知道了。我認為過去我們可以指出一些產品來支持這種觀點。但是，讓我們說，展望未來 2 年，您是否會看到更多定期發布的新產品將延續這一趨勢？

Yes, we have new innovations that we have lined up that we're seeing a good, strong interest in and adoption of. So yes, we continue to see that strategy be able to play out successfully in the years to come. Now at the same time, all of that innovation, all of that new technology adoption does happen in a broader macroeconomic context, right? So how that will impact our customers' launch plans and the like, I think, remain to be seen. But the fundamental structure of the strategy is in place.

是的，我們有新的創新，我們已經看到了我們看到的良好、強烈的興趣和採用。所以是的，我們繼續看到該戰略能夠在未來幾年成功發揮作用。與此同時，所有這些創新，所有新技術的採用確實發生在更廣泛的宏觀經濟背景下，對吧？因此，我認為這將如何影響我們客戶的發布計劃等，還有待觀察。但該戰略的基本結構已經到位。

We'll take our next question from Matt Niknam from Deutsche Bank.

我們將向德意志銀行的 Matt Niknam 提出下一個問題。

Sorry, I had the same cut out of my name when you were calling it out. So in the past, you talked about a 6% to 8% growth CAGR between 2020 and 2023. And I think, Ed, you may have mentioned it's somewhat relevant still at a recent industry conference. So I'm just curious, in light of recent macro events, any updates you can share and maybe more broadly, any expectations on when we could see an updated long-term guide?

對不起，當你喊出來的時候，我的名字也被刪掉了。所以在過去，你談到了 2020 年至 2023 年之間 6% 到 8% 的複合年增長率。我認為，Ed，你可能已經提到它在最近的一次行業會議上仍然有些相關。所以我很好奇，鑑於最近的宏觀事件，您可以分享的任何更新，也許更廣泛地說，我們對何時可以看到更新的長期指南有任何期望？

And then just a quick follow-up in terms of operating leverage. I think last quarter, you talked about EPS growth maybe outpacing top line by a bit. It looks like we're maybe lacking some of that operating leverage. I'm wondering is that entirely just display trends or anything else maybe to consider in terms of that mix shift on the margin side.

然後只是在運營槓桿方面的快速跟進。我認為上個季度，您談到每股收益增長可能會稍微超過收入。看起來我們可能缺乏一些運營槓桿。我想知道這完全只是顯示趨勢或其他任何可能要考慮的邊際混合轉變。

Yes. Thanks for the questions. So on the sales side, I think we gave you our guide for the year and we're in that in that zone. And we're not going to give new long-term guidance right now, primarily just because of all the challenges we articulated on the call. It's a very dynamic external environment. At some point, we'll certainly update you about 2023 and perhaps longer term. But I think the -- as Wendell said earlier, the secular growth trends are all intact, and we feel really good about them over the long term despite sort of this current challenging environment.

是的。感謝您的提問。所以在銷售方面，我想我們給了你今年的指南，我們就在那個區域。而且我們現在不會提供新的長期指導，主要是因為我們在電話會議中提出的所有挑戰。這是一個非常動態的外部環境。在某個時候，我們肯定會向您更新 2023 年甚至更長時間的信息。但我認為 - 正如溫德爾之前所說，長期增長趨勢都完好無損，儘管目前面臨這種充滿挑戰的環境，但從長遠來看，我們對它們感覺非常好。

And then on the operating leverage side, I think the primary driver for sure this year is what's happening in display. Volume going down, panel maker utilization going down, the market going down and our volume following is just a significant impact on our profitability. So that's the real primary driver on the earnings per share side this year.

然後在運營槓桿方面，我認為今年的主要驅動因素肯定是顯示器正在發生的事情。銷量下降，面板製造商利用率下降，市場下降和我們的銷量跟隨只是對我們盈利能力的重大影響。所以這是今年每股收益方面的真正主要驅動力。

And for gross margins, I know in the past you've talked -- you had talked about 1Q being the trough. Is that still the case as you get the benefit of positive pricing actions going forward?

至於毛利率，我知道你過去曾說過 - 你曾說過 1Q 是低谷。當您從未來的積極定價行動中受益時，情況仍然如此嗎？

Yes, we -- you're right. We did say that and we still, for sure, believe the first quarter was the trough. As you saw in our results, we stepped up about a point in the second quarter. That's really all about the pricing actions we had talked about. We feel great about those actions. And although the inflationary environment is still with us, we'll continue to raise price. And so over a period of time, that should be a favorable tailwind to margins. I would just caution that it will be a slow march in this environment.

是的，我們——你是對的。我們確實說過，我們仍然肯定地相信第一季度是低谷。正如您在我們的結果中看到的那樣，我們在第二季度提高了大約一個點。這就是我們談到的定價行為的全部內容。我們對這些行動感覺很好。儘管通貨膨脹環境仍然存在，但我們將繼續提高價格。因此，在一段時間內，這應該是對利潤率有利的順風。我只是警告說，在這種環境下這將是一個緩慢的進展。

And we'll take our next question from Asiya Merchant from Citi.

我們將向花旗的 Asiya Merchant 提出下一個問題。

I apologize if it's been asked before as I was switching between a couple of calls. Just on the Optical side, anything you can share about the demand that you're seeing from the hyperscalers versus the telco operators. We've been hearing some rumblings about hyperscalers, stepping down some CapEx investments. And so if you can share any color on that, that would be great.

如果我之前在幾個電話之間切換時被問過，我很抱歉。就光學方面而言，您可以分享有關您從超大規模運營商與電信運營商之間看到的需求的任何信息。我們一直聽到一些關於超大規模企業的傳言，減少了一些資本支出投資。因此，如果您可以在上面分享任何顏色，那就太好了。

So we continue to see demand from both. Without doubt, carrier demand has been highly stimulated by everything that's going on with both public policy as well as them having to catch up to sort of everything that happened in the pandemic. So just As we went into the pandemic, actually, they lowered their CapEx spend maybe by about 2/3 for both safety and just cash preservation terms, all while during the pandemic demand soared with like broadband use up some 50%, cloud revenue up some 60%, 70%.

因此，我們繼續看到兩者的需求。毫無疑問，公共政策所發生的一切以及他們必須趕上大流行中發生的一切，都極大地刺激了承運人的需求。因此，就在我們進入大流行時，實際上，出於安全和現金保存條款的考慮，他們可能將資本支出降低了約 2/3，而在大流行期間，需求飆升，寬帶使用量增加了約 50%，雲收入增加了大約 60%、70%。

And during that time period, both hyperscalers and carriers were pretty constrained. Now all of them build ahead demand. They tend to want to have about 18 months of supply at least in place to be able to take in the volatility of their customers' bandwidth demands. So we sort of went through that and we have to reestablish that. So in all of them, we have felt that sort of pull. As well as they look ahead, they see strong growth. So in general, things are still flashing green. You're right that we'll have certain of the hyperscalers at different times back off some of their stronger megawatt projections. But in all of them, we pretty much have a range on how many megawatts we think they can get in and which -- where we're aimed, if that makes sense to you.

在那段時間裡，超大規模運營商和運營商都受到了很大的限制。現在他們都建立了超前的需求。他們往往希望至少有大約 18 個月的供應，以便能夠應對客戶帶寬需求的波動。所以我們有點經歷了那個，我們必須重新建立它。所以在他們所有人中，我們都感受到了這種吸引力。除了展望未來，他們還看到了強勁的增長。所以總的來說，事情仍然呈綠色閃爍。你是對的，我們將在不同時間讓某些超大規模生產者放棄一些更強的兆瓦級預測。但在所有這些中，我們幾乎都有一個範圍，我們認為它們可以進入多少兆瓦，以及我們的目標是什麼，如果這對你有意義的話。

Our next question is going to come from Timothy Long from Barclays.

我們的下一個問題將來自巴克萊的 Timothy Long。

Just a 2-parter back on Optical Comms, if I can. One, could you talk a little bit about -- you mentioned capacity increases, maybe being a little bit behind where you need to be. Could you just give us a time line there? Were there some capacity increases that helped Q2 with the cadence of kind of adding capacity to that business over the next few quarters? And then secondly, just on leverage there.

如果可以的話，只是在光通信上的 2-parter。一，你能談談 - 你提到容量增加，也許有點落後於你需要的地方。你能給我們一個時間表嗎？是否有一些產能增加有助於第二季度在接下來的幾個季度為該業務增加產能？其次，就在那裡的槓桿作用。

Last, we saw some very good margin leverage on the higher sales. It's just 1 quarter, but sequentially kind of flat margins there with the higher ASPs. Is that something we can expect to see unfold over the next few quarters as that business continues to do well a little bit more operating leverage?

最後，我們在較高的銷售額中看到了一些非常好的利潤率槓桿。這只是 1 個季度，但隨著平均售價的提高，那裡的利潤率連續保持平穩。隨著該業務繼續表現良好並增加一點運營槓桿，我們可以期待在接下來的幾個季度中看到這種情況嗎？

Yes. So thanks, Tim. So on capacity, we've been talking about adding capacity. It's fiber and cable capacity primarily this year. We have a little bit coming on in the third quarter and a little more in the fourth quarter. And as you heard Wendell say, we're a little behind probably a quarter or so relative to what we thought maybe 3, 6 months ago. So some of that capacity will help us more in the first half of '23 versus in 2022.

是的。所以謝謝，蒂姆。所以關於容量，我們一直在談論增加容量。今年主要是光纖和電纜容量。我們在第三季度會有一些進展，在第四季度會有更多進展。正如你聽到溫德爾所說，我們可能比我們 3、6 個月前的想法落後了四分之一左右。因此，與 2022 年相比，其中一些能力將在 23 年上半年為我們提供更多幫助。

We did have a really strong quarter, and we sell a mix of products on the connectivity side where we have capacity that helped our quarter significantly in the second quarter. And I think on the operating leverage, you're exactly right. Optical happens to be one of the businesses that has had a lot of inflation. We have raised prices successfully there, and that has helped us kind of normalize our margins and slowly march them up there as well. And I think you can continue -- you should continue to expect to see that. But again, just caution that it will be a slow march up in this environment.

我們確實有一個非常強勁的季度，我們在連接方面銷售了多種產品，我們有能力在第二季度顯著幫助我們的季度。而且我認為就經營槓桿而言，您是完全正確的。光學恰好是通貨膨脹率很高的業務之一。我們在那裡成功地提高了價格，這有助於我們使我們的利潤正常化，並慢慢地將它們提高到那裡。我認為你可以繼續——你應該繼續期待看到這一點。但同樣，請注意，在這種環境下，這將是一個緩慢的進步。

We got time for one more question.

我們有時間再問一個問題。

And we'll take our final question from Meta Marshall from Morgan Stanley.

我們將向摩根士丹利的 Meta Marshall 提出最後一個問題。

Great. Maybe to your guys' comments at the end that you would be evaluating macro for any change in build plans. Just wanted to kind of verify it. Like have you guys changed any build plans yet for '22 even if that's kind of moving within segments? And then maybe on the second question, you guys noted kind of a couple of times as labor being the gating item for kind of further Optical business or rollout. Just wanted to get a sense of even when it comes to cloud, are there -- is it really just still labor? Or are there other elements of the supply chain that need to kind of come into place to get further build activity there?

偉大的。也許對於你們最後的評論，你們將評估宏以了解構建計劃的任何變化。只是想驗證一下。就像你們改變了 22 年的任何構建計劃一樣，即使這是在細分市場內移動？然後也許在第二個問題上，你們有幾次提到勞動力是進一步光學業務或推出的門控項目。只是想了解一下，即使談到雲，是否存在——它真的只是在工作嗎？或者供應鏈中是否還有其他元素需要到位才能在那裡進行進一步的建設活動？

Let me take the first one, and then we'll go into the more detailed second one. So in the first one, I wouldn't characterize that we've been holding back on our investments due to the macro. What we are doing is making sure, first, at the operating level like, for instance, in display. We're taking the opportunity to take our tanks down for repair and putting in new technology packages. And we just simply won't restart them until such times as we have really nice clarity on our customers' demand. And in that way, we'll keep supply and demand in balance. And we have similar things like that as we can feather one way or the other.

讓我拿第一個，然後我們將進入更詳細的第二個。因此，在第一個方面，我不會說我們由於宏觀經濟而一直在阻止我們的投資。我們正在做的是確保，首先，在操作級別，例如，在顯示中。我們正在藉此機會將我們的坦克拆下來進行維修並安裝新的技術包。而且我們只是不會重新啟動它們，直到我們非常清楚地了解客戶的需求。這樣，我們將保持供需平衡。我們也有類似的事情，因為我們可以以一種或另一種方式羽化。

In Opto, if you're aimed at that in Opto -- in connectivity, we have now brought -- because when we think about Opto, you need fiber, you need cable and you need connectivity to build these passive Optical networks. And in connectivity, we successfully brought up enough capacity in the first half so that we feel pretty good about our ability to meet the customers' ramps there that we see. In fiber and cable, if we could make more, we could sell more. And it was just that the way that the supply chains work, construction work, we're just going a little bit behind where we would like to be on some of our ramps and we'll pick those up next year.

在 Opto，如果你的目標是 Opto - 在連接方面，我們現在已經帶來 - 因為當我們考慮 Opto 時，你需要光纖，你需要電纜，你需要連接來構建這些無源光網絡。在連接方面，我們在上半年成功地提高了足夠的容量，因此我們對我們滿足客戶需求的能力感到非常滿意。在光纖和光纜方面，如果我們能生產更多，我們就能賣得更多。只是供應鏈的工作方式，建築工作，我們只是稍微落後於我們希望在我們的一些坡道上的位置，我們將在明年拾起那些。

In every case where we do a significant investment, we have committed demand from a customer, and we ask some substantial financial commitment from them. So we would expect to continue to build with them to the extent that they offer that type of commitment and therefore, an appropriate sharing of risk with our shareholders. So that's sort of in macro. And then to your specific question, I would say and without question, labor remains the top issue for installations, Whether it's in hypers or it's in carriers, that remains one of the more tightly -- one of the tightest pieces on the critical path.

在我們進行重大投資的每一種情況下，我們都承諾了客戶的需求，並且我們要求他們做出一些實質性的財務承諾。因此，我們希望繼續與他們合作，直到他們提供這種類型的承諾，從而與我們的股東適當地分擔風險。所以這有點宏觀。然後對於你的具體問題，我會說，毫無疑問，勞動力仍然是安裝的首要問題，無論是在超級飛機還是在航母中，這仍然是更緊密的問題之一——關鍵路徑上最緊密的部分之一。

At the same time, you're quite right to point out that you move in this economic situation in this sort of odd moment we all find ourselves in, you move from 1 bottleneck to another to another. So I'm quite sure you're right, if we were able to resolve labor, there'd be something else.

同時，您非常正確地指出，您在這種我們都發現自己所處的奇怪時刻處於這種經濟形勢中，您從一個瓶頸轉移到另一個瓶頸。所以我很確定你是對的，如果我們能夠解決勞動力問題，就會有其他事情發生。

Thanks, Ed. Thanks, Wendell. And I want to thank you all for joining us this morning. Before we close, I'll let you know that we're going to attend Citi's Global Technology Conference on September 8 and Goldman Sachs Communacopia and Technology Conference on September 13. Additionally, we'll be hosting some visits with investors in select cities over the quarter.

謝謝，埃德。謝謝，溫德爾。我要感謝大家今天早上加入我們。在結束之前，我會通知您，我們將參加 9 月 8 日的花旗全球技術會議和 9 月 13 日的高盛 Communacopia 和技術會議。此外，我們將在部分城市與投資者進行一些訪問季度。

A replay of today's call will be available on our site starting later this morning. Thanks, everybody, for joining us. Operator, that concludes our call. Please disconnect all lines.

今天上午晚些時候將在我們的網站上重播今天的電話會議。謝謝大家加入我們。接線員，這結束了我們的通話。請斷開所有線路。

This concludes today's conference call. Thank you for your participation. You may now disconnect. Everyone, have a great day.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。大家，有一個美好的一天。