康寧 (GLW) 2022 Q3 法說會逐字稿

Welcome to the Corning Inc. Third Quarter 2022 Earnings Call. (Operator Instructions)

歡迎參加康寧公司 2022 年第三季度財報電話會議。 （操作員說明）

It is my pleasure to introduce to you, Ann Nicholson, Vice President of Investor Relations.

很高興向您介紹投資者關係副總裁 Ann Nicholson。

Thank you, and good morning. Welcome to Corning's Q3 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.

謝謝你，早上好。歡迎參加康寧 2022 年第三季度財報電話會議。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 fall within 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'll be discussing our consolidated results using core performance measures, unless we specifically indicate our comments related 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。這些陳述涉及風險、不確定性和其他可能導致實際結果出現重大差異的因素。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對 GAAP 數據的評論。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 third quarter, the primary difference between GAAP and core EPS was from primarily noncash charges associated with capacity optimization and noncash mark-to-market adjustments associated with the company's currency hedging contracts.

第三季度，美國通用會計準則與核心每股收益之間的主要差異主要來自與產能優化相關的非現金費用以及與公司貨幣對沖合約相關的非現金市值調整。

This increased core earnings in the third quarter by $234 million. To be clear, these charges and mark-to-market accounting have no impact on our cash flow. 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 Corning results on our website with downloadable financials in the Interactive Analyst Center. Supporting slides are being shown live. They're also available on our website for downloading.

這使第三季度的核心收益增加了 2.34 億美元。需要明確的是，這些費用和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康寧結果，並在交互式分析師中心下載財務數據。支持幻燈片正在現場展示。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 reported solid third quarter results that demonstrate strong execution. We continue to operate each of our business as well and our focus on leadership and distinctive capabilities allow us to capitalize on important secular trends and drive our More Corning approach. Sales were $3.7 billion, up slightly versus a strong third quarter last year, and EPS was $0.51. We were able to offset a sales decline in display technologies with growth in optical communications and solar. While we believe that display panel maker production bottomed in September, we would like to see additional positive evidence before guiding a significant recovery in glass demand.

謝謝你，安，大家早上好。今天，我們報告了穩健的第三季度業績，顯示出強勁的執行力。我們還將繼續運營我們的每項業務，我們對領導力和獨特能力的關注使我們能夠利用重要的長期趨勢並推動我們的 More Corning 方法。銷售額為 37 億美元，略高於去年第三季度的強勁表現，每股收益為 0.51 美元。我們能夠通過光通信和太陽能的增長來抵消顯示技術的銷售下滑。雖然我們認為顯示面板製造商的產量在 9 月份觸底，但我們希望在引導玻璃需求顯著復甦之前看到更多積極的證據。

In total, we performed well despite the economic environment.

總體而言，儘管經濟環境不佳，我們仍表現良好。

Before we get into the details, I wanted to set some context on what we're facing across our markets. On our last call, we told you that end markets in multiple businesses were down. A smartphone sales in the second quarter declined 8% year-over-year, panel maker utilization in June 2022 was at its lowest level since 2009. And yearly, automotive production was 10 million to 15 million vehicles below its pre-COVID rate.

在我們進入細節之前，我想就我們在整個市場面臨的情況設定一些背景。在我們上次的電話會議中，我們告訴您，多個業務的終端市場都在下滑。第二季度智能手機銷量同比下降 8%，2022 年 6 月面板製造商的利用率處於 2009 年以來的最低水平。汽車產量比疫情前的水平低 1000 萬至 1500 萬輛。

Several of these dynamics continued or even intensified in the third quarter. A smartphone unit sales declined 14% year-over-year in the quarter, with tablet and notebook demand down 17%. Panel maker utilization decreased even further from its June level with September being the lowest month of the quarter and annual automotive production is still 10 million to 15 million cars short due to continued component shortages.

其中一些動態在第三季度持續甚至加劇。本季度智能手機銷量同比下降 14%，平板電腦和筆記本電腦需求下降 17%。面板製造商的利用率比 6 月份的水平進一步下降，9 月份是本季度最低的月份，由於持續的零部件短缺，年汽車產量仍短缺 1000 萬至 1500 萬輛汽車。

Nevertheless, we delivered results within our guidance range and expectations. We continue to benefit from infrastructure investments in broadband and clean energy, two secular trends we're strategically positioned to address. We delivered 16% year-over-year growth in Optical Communications, and we captured ongoing demand in the solar market, which contributed to 33% year-over-year growth in Hemlock and Emerging Growth Businesses.

儘管如此，我們還是在我們的指導範圍和預期範圍內交付了結果。我們繼續受益於寬帶和清潔能源的基礎設施投資，這是我們戰略性地應對的兩個長期趨勢。我們在光通信領域實現了 16% 的同比增長，我們抓住了太陽能市場的持續需求，這為 Hemlock 和新興增長業務的同比增長做出了 33% 的貢獻。

So let's take a deeper look. What we're seeing in some of our key markets, how we're responding. And why we're confident that our strategy continues to position us to deliver profitable multiyear growth. I'll start with display. In the third quarter, the glass market and our volume both decreased almost 25% sequentially and which significantly reduced our sales and profitability. In September, panel maker utilization reached the lowest level since the fourth quarter of 2008.

因此，讓我們更深入地了解一下。我們在一些主要市場看到了什麼，我們是如何應對的。以及為什麼我們有信心我們的戰略繼續使我們能夠實現盈利的多年增長。我將從顯示開始。第三季度，玻璃市場和我們的銷量均環比下降近 25%，這大大降低了我們的銷售額和盈利能力。 9 月，面板製造商的利用率達到 2008 年第四季度以來的最低水平。

More than a year ago, we said we expected a correction in the display industry during 2022. In the second quarter, panel makers began reducing production levels with accelerated reductions in June. In the third quarter, panel maker production reached an even lower level. And we believe that panel maker production reached the bottom in September.

一年多前，我們表示預計 2022 年顯示行業將出現回調。第二季度，面板製造商開始降低生產水平，並在 6 月份加速減產。第三季度，面板製造商的產量達到了更低的水平。我們認為面板製造商的產量在 9 月份觸底。

So now the question is, when will the glass market recover? Now our answer is that we would like to see additional positive evidence before we guide a robust recovery in glass demand. We've maintained stable price and market position during this whole correction. Consequently, we expect our volume and profitability to increase sharply when panel maker utilization rebounds and we expect to exit the correction with strengthened customer relationships and importantly, a refreshed manufacturing fleet. As always, we will keep you informed as we progress.

那麼現在的問題是，玻璃市場何時會復蘇？現在我們的回答是，在我們引導玻璃需求強勁復甦之前，我們希望看到更多的積極證據。在整個調整過程中，我們一直保持穩定的價格和市場地位。因此，我們預計，當面板製造商的利用率反彈時，我們的銷量和盈利能力將大幅增加，並且我們預計會隨著客戶關係的加強以及重要的是更新的製造機隊退出修正。與往常一樣，隨著我們的進展，我們將隨時通知您。

Overall, we feel very good about our execution in display. In mobile consumer electronics, customer product launches and strength in semiconductor drove sequential growth in Specialty Materials. As I noted, smartphone and IT retail unit sales declined significantly in the quarter. We now expect smartphones to be down about 12% for the year. And we expect notebook and tablet demand to decline 15%. We expect the year-over-year decline in smartphones, notebooks and tablets to be greater in the second half than in the first half. This will limit the growth we normally see in our second half sales relative to the first half.

總的來說，我們對我們在展示中的執行感覺非常好。在移動消費電子產品中，客戶產品的推出和半導體領域的實力推動了特種材料的連續增長。正如我所指出的，智能手機和 IT 零售單位銷售額在本季度顯著下降。我們現在預計智能手機今年將下降約 12%。我們預計筆記本電腦和平板電腦的需求將下降 15%。我們預計下半年智能手機、筆記本電腦和平板電腦的同比降幅將大於上半年。這將限制我們通常在下半年看到的銷售額相對於上半年的增長。

Now that said, we continue to outperform the market through our product leadership, our more Corning approach and our ongoing collaboration with industry leaders.

話雖如此，我們通過我們的產品領先地位、我們更康寧的方法以及我們與行業領導者的持續合作繼續超越市場。

Over the long term, our content strategy in mobile consumer electronics will help us grow. As we continue to develop and launch premium glasses and optical treatments,for existing and new form factors.

從長遠來看，我們在移動消費電子領域的內容戰略將幫助我們成長。隨著我們繼續開發和推出針對現有和新形式因素的優質眼鏡和光學治療。

Additionally, we're executing our more Corning approach in the semiconductor industry. In July, Senator, Chuck Schumer and New York Governor, Kathy Hochul, joined us to announce government funding that supports an expansion of our advanced optics facilities, which made equipment and materials vital to semiconductor manufacturing. Of course, semiconductors are fundamental to virtually all technology we interact with today. We've helped advance the industry for more than 50 years, and our expansion will keep us well positioned to support nearly every step of the chip manufacturing process and to respond to new customer needs, including products for EUV technology.

此外，我們正在半導體行業執行我們更多的康寧方法。 7 月，參議員 Chuck Schumer 和紐約州州長 Kathy Hochul 與我們一起宣布政府資助擴大我們先進的光學設施，這使得設備和材料對半導體製造至關重要。當然，半導體是我們今天與之互動的幾乎所有技術的基礎。 50 多年來，我們幫助推動了該行業的發展，我們的擴張將使我們處於有利地位，能夠支持芯片製造過程的幾乎每一步，並響應新的客戶需求，包括用於 EUV 技術的產品。

Let's turn to automotive. In Environmental Technologies, we delivered sales and profit growth despite the constraints on vehicle production, and we're outperforming the market for the year. We continue to adjust our operations to effectively navigate the variability in auto production and we are prepared to meet demand when industry production increases to normal rates.

讓我們轉向汽車。在環境技術方面，儘管汽車生產受到限制，我們仍實現了銷售額和利潤增長，並且我們在今年的表現優於市場。我們將繼續調整我們的運營以有效應對汽車生產的可變性，並且我們準備在行業生產增加到正常速度時滿足需求。

We're also generating significant wins in our Automotive Glass Solutions business. Pull is strong for our technical glass and optics innovations.

我們還在汽車玻璃解決方案業務中取得了重大勝利。拉力對於我們的技術玻璃和光學創新來說非常強大。

During the quarter, CarUX, a leading car display company owned by Innolux, announced its use of our patented cold-form technology to help drive the future of auto interior displays. Corning continues to be well positioned to further grow its automotive business as the industry offers more advanced, designed-oriented cabins and enhanced driver assistance features.

在本季度，群創旗下領先的汽車顯示器公司 CarUX 宣布使用我們的專利冷成型技術來幫助推動汽車內飾顯示器的未來。隨著該行業提供更先進、設計導向的駕駛室和增強的駕駛輔助功能，康寧將繼續處於有利地位，以進一步發展其汽車業務。

Let's move to Optical Communications, which was the largest contributor to third quarter sales. The industry continues to experience a large multiyear wave of growth for passive optical networks, and we continue to increase our capacity to support this growth.

讓我們轉向光通信，它是第三季度銷售額的最大貢獻者。該行業繼續經歷無源光網絡多年的大規模增長浪潮，我們將繼續增加支持這一增長的能力。

In August, U.S. Secretary of Commerce, Gina Raimondo, joined AT&T CEO, John Stankey, and me to announce a new manufacturing facility in Arizona. You may recall Secretary Raimondo's leadership helped pass infrastructure legislation dedicated to the idea of Internet for all. Our new plant will boost optical cable capacity to meet record demand.

8 月，美國商務部長 Gina Raimondo 與 AT&T 首席執行官 John Stankey 和我一起宣佈在亞利桑那州建立新的製造工廠。您可能還記得雷蒙多部長的領導幫助通過了致力於為所有人提供互聯網理念的基礎設施立法。我們的新工廠將提高光纜產能以滿足創紀錄的需求。

In September, we opened a new optical fiber manufacturing plant in Poland to serve committed demand. And we're innovating to support every phase of broadband deployment as network access is increasingly viewed as a fundamental human right.

9 月，我們在波蘭開設了一家新的光纖製造廠，以滿足承諾的需求。隨著網絡接入越來越被視為一項基本人權，我們正在創新以支持寬帶部署的每個階段。

In the quarter, we announced additions to our Evolv connectivity portfolio which helps operators streamline permitting, accelerate field installation and optimize network testing. Optical sales have grown 22% and for the first 3 quarters of the year, setting us up for another strong year of growth. However, we expect fourth quarter sales to be down sequentially due to the timing of customer projects.

在本季度，我們宣布增加 Evolv 連接產品組合，幫助運營商簡化許可、加速現場安裝和優化網絡測試。今年前三個季度，光學銷售額增長了 22%，為我們迎來又一個強勁增長的一年做好了準備。然而，由於客戶項目的時間安排，我們預計第四季度的銷售額將環比下降。

Turning to solar. The renewable energy industry is evolving rapidly, and our ongoing growth continues to indicate that the market's behavior is more closely tied to a global imperative than the current economic trends. We reenergized our participation in the solar market by starting up idle capacity and securing customer commitments through new long-term take-or-pay contracts for solar grade polysilicon. Third quarter sales grew significantly year-over-year, and we will benefit from the state of Michigan's infrastructure investment program, which will help us expand operations to meet increasing global demand for polysilicon. We believe that Corning's broader technical and manufacturing capabilities, our 3 and 4, will prove to be highly relevant and helping advance the renewable energy industry, and we see excellent growth potential in solar.

轉向太陽能。可再生能源行業正在迅速發展，我們的持續增長繼續表明，與當前的經濟趨勢相比，市場行為與全球需求的關係更為密切。我們通過新的太陽能級多晶矽長期照付不議合同啟動閒置產能並確保客戶承諾，重新激發了我們對太陽能市場的參與。第三季度銷售額同比顯著增長，我們將受益於密歇根州的基礎設施投資計劃，這將幫助我們擴大業務以滿足全球對多晶矽不斷增長的需求。我們相信，康寧更廣泛的技術和製造能力，即我們的 3 和 4，將被證明具有高度相關性，並有助於推動可再生能源行業的發展，我們看到了太陽能的巨大增長潛力。

Now as I conclude my remarks, here's what I'd like to leave you with today. We remain very well positioned to deliver profitable multiyear growth and we'll continue to execute with discipline. We'll invest where we see strength and will pace to meet demand. Our cohesive and focused portfolio provides strategic resilience that is playing out well in this current environment. We've established a deep relevance to secular trends along with the ability to drive more content into our markets over time. We've been leading in the automotive and life science markets for 100 years, display for 80 years, telecommunication for 50 and mobile consumer electronics since the inception of smart devices.

現在，當我結束我的發言時，這就是我今天想留給你們的內容。我們仍然非常有能力實現盈利的多年增長，我們將繼續遵守紀律。我們將在我們認為有實力的地方進行投資，並將加快步伐以滿足需求。我們具有凝聚力和重點的產品組合提供了在當前環境下表現良好的戰略彈性。我們已經建立了與長期趨勢的深度相關性，以及隨著時間的推移將更多內容推向我們市場的能力。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。

The basis of our ongoing success is our distinctive set of capabilities and long track record of life-changing and even life-saving inventions.

我們持續成功的基礎是我們獨特的能力和改變生活甚至拯救生命的發明的長期記錄。

In the past, what enables us to power through moments like the present while maintaining an attractive long-term growth trajectory.

在過去，是什麼使我們能夠在像現在這樣的時刻保持動力，同時保持有吸引力的長期增長軌跡。

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。

Thanks, Wendell. Good morning, everyone. Let me start by emphasizing that we're executing well in a challenging environment. Our performance in the third quarter was a proof point of the inherent balance of our cohesive portfolio and the fact that our More Corning approach is working. We're built to be resilient even in a downturn.

謝謝，溫德爾。大家，早安。首先讓我強調一下，我們在充滿挑戰的環境中表現良好。我們在第三季度的表現證明了我們具有凝聚力的產品組合的內在平衡以及我們的 More Corning 方法正在發揮作用的事實。即使在經濟低迷時期，我們也能保持彈性。

Now let's look at our financial results for the third quarter. Sales were $3.7 billion, up 1% from a strong third quarter in 2021. Optical Communications, Environmental Technologies, Life Sciences and Hemlock and Emerging Growth Businesses all delivered year-over-year growth.

現在讓我們看看我們第三季度的財務業績。銷售額為 37 億美元，比 2021 年強勁的第三季度增長 1%。光通信、環境技術、生命科學和 Hemlock 以及新興增長業務均實現了同比增長。

In September, Display Technologies experienced the lowest panel maker utilization levels since 2008, resulting in a 28% year-over-year decline in sales for the segment in the third quarter.

9 月，Display Technologies 經歷了自 2008 年以來的最低面板製造商利用率水平，導致第三季度該部門的銷售額同比下降 28%。

In Specialty Materials, we outperformed the smartphone market, which was down double digits year-over-year.

在特種材料方面，我們的表現優於智能手機市場，智能手機市場同比下降兩位數。

Turning to profitability. Gross margin was 36.1% and operating margin was 16.9%, down sequentially 140 and 190 basis points, respectively, driven by the lower volume in display technologies.

轉向盈利能力。毛利率為 36.1%，營業利潤率為 16.9%，環比分別下降 140 和 190 個基點，受顯示技術銷量下降的推動。

In the third quarter, free cash flow was $255 million, and year-to-date, it was $866 million, keeping us on pace for another year of healthy cash generation. And despite the challenging environment during the quarter, we were able to offset significantly lower volume in display technologies, and we outperformed our underlying markets overall.

第三季度，自由現金流為 2.55 億美元，年初至今為 8.66 億美元，使我們保持了又一年健康現金流的步伐。儘管本季度環境充滿挑戰，但我們能夠抵消顯著下降的顯示技術銷量，並且我們的整體表現優於我們的基礎市場。

Now let's turn to the segment results. In Optical Communications, sales grew 16% year-over-year, reaching $1.3 billion. Our year-over-year growth was driven by network operator investments in 5G, broadband and the cloud. Net income was $183 million, up 32% and year-over-year, driven by leverage from strong incremental volume. Passive Optical Networks continue to experience a large multiyear wave of growth. We believe that this demand is strongly supported by private and public infrastructure investments to help connect the unconnected and bring broadband to a much larger share of the population. We continue to secure customer commitments, and we're investing to appropriately scale production to serve our incremental demand from current and new customers. And we're also taking further pricing actions to more appropriately shared recent cost increases in energy and certain raw materials with our customers.

現在讓我們轉向分段結果。在光通信領域，銷售額同比增長 16%，達到 13 億美元。網絡運營商對 5G、寬帶和雲的投資推動了我們的同比增長。在強勁增量的槓桿作用下，淨收入為 1.83 億美元，同比增長 32%。無源光網絡繼續經歷多年的巨大增長浪潮。我們認為，這種需求得到了私人和公共基礎設施投資的大力支持，以幫助連接未連接的人並將寬帶帶給更多的人口。我們繼續確保客戶承諾，我們正在投資以適當擴大生產規模，以滿足我們現有和新客戶的增量需求。我們還將採取進一步的定價行動，以更恰當地與我們的客戶分享能源和某些原材料的近期成本上漲。

As we've mentioned in the past, this business can be lumpy from quarter-to-quarter, and you'll see that play out in the fourth quarter as we expect optical sales to be down sequentially based on the timing of customer projects.

正如我們過去提到的，這項業務可能會在每個季度之間波動，您會在第四季度看到這種情況，因為我們預計光學銷售額將根據客戶項目的時間順序下降。

Now moving to Display. As we updated you in September, panel makers reduced their production levels below our already low expectations. The lower volume resulted in display sales declining 28% year-over-year and 22% sequentially, and we saw a 46% year-over-year and 41% sequential decline in net income due to the high fixed cost nature of glass manufacturing. In the third quarter, glass price was once again consistent sequentially. And we believe the glass pricing environment will remain favorable and factors that continue to drive that favorable pricing include glass supply-demand balance as panel makers reduce production, Corning and other glass makers took additional tanks offline for maintenance and repairs after an extended period of glass tightness.

現在轉移到顯示。正如我們在 9 月向您介紹的那樣，面板製造商將其生產水平降低到低於我們已經很低的預期。銷量下降導致顯示器銷售額同比下降 28% 和環比下降 22%，由於玻璃製造的高固定成本性質，我們看到淨收入同比下降 46% 和環比下降 41%。三季度，玻璃價格再次環比持平。我們認為，玻璃定價環境將保持有利，繼續推動有利定價的因素包括玻璃供需平衡，因為面板製造商減產，康寧和其他玻璃製造商在玻璃長時間停產後使更多罐下線進行維護和維修緊密度。

And we're also taking this opportunity to upgrade some of our fleet with our latest technology which enables us to reduce cost and extend the life of new tanks.

我們也藉此機會使用我們最新的技術升級我們的一些車隊，這使我們能夠降低成本並延長新坦克的使用壽命。

As we continue to work through these upgrades, we are actively managing restarts to align our supply to demand.

隨著我們繼續進行這些升級工作，我們正在積極管理重啟，以使我們的供應與需求保持一致。

Another factor is glass maker profitability. It is challenging for glass makers who have high fixed costs to maintain profitability during periods of low volume and the current inflationary environment amplifies that challenge. We expect fourth quarter glass prices to be consistent with the third quarter and glass prices to be stable or up in subsequent quarters.

另一個因素是玻璃製造商的盈利能力。對於固定成本高的玻璃製造商而言，在產量低迷時期保持盈利是一項挑戰，而當前的通貨膨脹環境加劇了這一挑戰。我們預計第四季度玻璃價格將與第三季度保持一致，隨後幾個季度玻璃價格將穩定或上漲。

So overall, we continue to operate from a position of strength in the display market. And as Wendell noted, while we believe that panel maker utilization reached the bottom in September, we would like to see more evidence before we got a significant recovery in glass demand. But when glass demand grows, we expect our volume to increase and our profitability to improve.

因此，總體而言，我們繼續在顯示器市場佔據優勢地位。正如溫德爾所指出的，雖然我們認為面板製造商的利用率在 9 月份觸底，但我們希望在玻璃需求顯著復甦之前看到更多證據。但是，當玻璃需求增長時，我們預計我們的銷量會增加，盈利能力也會提高。

In Specialty Materials, the market for smartphones was down 14% and tablets and notebooks were down 17%. We outperformed the market with sales down only 7% year-over-year, driven by strong demand for premium glasses, and strength in semiconductor materials. Third quarter sales were up 7% sequentially, driven by demand for our premium cover materials to support customer product launches.

在特種材料領域，智能手機市場下降 14%，平板電腦和筆記本電腦市場下降 17%。由於對優質玻璃的強勁需求和半導體材料的強勁勢頭，我們的銷售額同比僅下降 7%，表現優於市場。第三季度銷售額環比增長 7%，這得益於對我們的優質封面材料的需求，以支持客戶產品發布。

And adding to our resilience in the segment, Advanced Optics delivered record sales for the second quarter in a row, and we are bringing additional capacity online at our facilities in Fairport and Canton, New York.

為增強我們在該領域的彈性，Advanced Optics 連續第二季度實現了創紀錄的銷售額，我們在紐約費爾波特和坎頓的工廠在線提供了額外的產能。

Net income for the segment was $96 million, down 10% year-over-year due to lower volume and continued development expense related to next-generation products. The weakness in the smartphone tablet and notebook markets intensified in the quarter, and we expect fourth quarter sales and profitability to be down sequentially and year-over-year.

該部門的淨收入為 9600 萬美元，同比下降 10%，原因是與下一代產品相關的銷量減少和持續的開發費用。本季度智能手機平板電腦和筆記本電腦市場的疲軟加劇，我們預計第四季度的銷售額和盈利能力將環比和同比下降。

Long term, we expect to outperform the market as we continue to develop and launch new premium glasses and optical treatments.

從長遠來看，隨著我們繼續開發和推出新的優質眼鏡和光學治療，我們預計將跑贏市場。

Turning to Environmental Technologies. In the third quarter, sales were $425 million, up 10% year-over-year and 19% sequentially. The Automotive production improved from a very low second quarter as China demand recovered after second quarter COVID lockdowns. However, vehicle production remains constrained due to the continued component shortages.

轉向環境技術。第三季度銷售額為 4.25 億美元，同比增長 10%，環比增長 19%。隨著中國需求在第二季度 COVID 封鎖後恢復，汽車產量從第二季度非常低的水平有所改善。然而，由於持續的零部件短缺，汽車生產仍然受到限制。

In addition to our sales growth, we improved profitability with net income up 45% year-over-year. Our content-driven strategy is working, gasoline particulate filters remain a critical component of that strategy, driving revenue even in a weakened market. Our next-generation filters are now shipping to customers as emission standards reach near 0 levels and require enhanced filtration performance.

除了銷售額增長外，我們還提高了盈利能力，淨利潤同比增長 45%。我們的內容驅動戰略正在發揮作用，汽油微粒過濾器仍然是該戰略的關鍵組成部分，即使在疲軟的市場中也能推動收入。隨著排放標準接近 0 水平並需要增強過濾性能，我們的下一代過濾器現已交付給客戶。

In Life Sciences, sales were $312 million, consistent sequentially and up 2% year-over-year. Lower demand for COVID-related products was offset by growth in research products. Net income was $43 million. We continue to commercialize innovations, including the new cell and gene therapy production platform. And looking ahead, we expect to see continued growth in both research and bio process.

在生命科學領域，銷售額為 3.12 億美元，環比保持一致，同比增長 2%。研究產品的增長抵消了對 COVID 相關產品的需求下降。淨收入為4300萬美元。我們繼續將創新商業化，包括新的細胞和基因治療生產平台。展望未來，我們預計研究和生物工藝將繼續增長。

Finally, in Hemlock and Emerging Growth businesses, sales were $407 million, up 33% year-over-year and down 3% sequentially. We continue to see increased demand for semiconductor grade polysilicon and strong demand for solar materials, and we continue to ramp solar capacity and sign up new customers with long-term take-or-pay contracts.

最後，在 Hemlock 和新興增長業務中，銷售額為 4.07 億美元，同比增長 33%，環比下降 3%。我們繼續看到對半導體級多晶矽的需求增加和對太陽能材料的強勁需求，我們繼續提高太陽能產能並通過長期照付不議的合同簽訂新客戶。

In September, Corning Pharmaceutical Technologies announced that it was awarded $104 million in additional funding from BARDA to support our planned capacity expansion for advanced, high-quality pharmaceutical glass tubing and vials. These expansions are designed to help the health care industry rapidly scale manufacturing to address current and future public health challenges.

9 月，康寧製藥技術公司宣布從 BARDA 獲得 1.04 億美元的額外資金，以支持我們計劃的先進、高質量藥用玻璃管和小瓶的產能擴張。這些擴展旨在幫助醫療保健行業快速擴大製造規模，以應對當前和未來的公共衛生挑戰。

Now I want to take a minute to talk about currency exchange rates. As you know, the dollar has been strengthening over the past year. As a reminder, we have actively hedged our foreign currency exposure over the past decade. This serves as an effective tool to reduce earnings volatility, protect our cash flow, enhance our ability to invest and provide shareholder returns. Our largest exposure is the yen, and we have most of next year hedged. We expect our core rate to remain the same in 2023.

現在我想花一點時間談談貨幣匯率。如你所知，美元在過去一年一直在走強。提醒一下，在過去十年中，我們積極對沖我們的外匯敞口。這是減少收益波動、保護我們的現金流、增強我們的投資能力和為股東提供回報的有效工具。我們最大的風險敞口是日元，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。

We're very 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.

我們對我們的對沖計劃及其提供的經濟確定性感到非常滿意。自對沖合約成立以來，我們已收到超過 20 億美元的現金。

Now let's turn to the outlook for the fourth quarter. We expect sales in the range of $3.45 billion to $3.65 billion and EPS in the range of $0.41 to $0.47.

現在讓我們轉向第四季度的展望。我們預計銷售額在 34.5 億美元至 36.5 億美元之間，每股收益在 0.41 美元至 0.47 美元之間。

Now our fourth quarter guidance reflects several factors. In Optical Communications, pacing of customer projects will impact sales for the quarter. In Specialty Materials, we expect a sequential decline driven by lower demand in the smartphone, notebook and tablet markets. And of course, the biggest element in our guidance is Display. As I noted, we do not yet have enough positive evidence to guide significant improvement in glass demand from September levels. We expect free cash flow to be strong in the fourth quarter. And for the full year, we expect free cash flow in the range of $1.3 billion to $1.5 billion.

現在，我們的第四季度指引反映了幾個因素。在光通信領域，客戶項目的進度將影響本季度的銷售額。在特種材料方面，我們預計智能手機、筆記本電腦和平板電腦市場需求下降將導致連續下滑。當然，我們指導中最大的元素是展示。正如我所指出的，我們還沒有足夠的積極證據來指導玻璃需求從 9 月份的水平顯著改善。我們預計第四季度的自由現金流將強勁。全年，我們預計自由現金流在 13 億至 15 億美元之間。

Now I'd like to wrap up with a few key takeaways. As I noted at the opening of my remarks, we're executing well. And because of our inherent balance of our cohesive portfolio and our More Corning approach, we're built to be resilient even in a downturn as evidenced by the performance of Specialty Materials and Environmental Technologies this quarter. Our long-term growth drivers all remain intact, and we're well positioned to continue capturing growth tied to key secular trends such as Optical Communications and solar.

現在我想總結一些關鍵要點。正如我在發言開始時指出的那樣，我們執行得很好。由於我們在凝聚力產品組合和 More Corning 方法之間的內在平衡，即使在經濟低迷時期，我們也能保持彈性，本季度特種材料和環境技術公司的表現就證明了這一點。我們的長期增長動力都保持不變，我們有能力繼續抓住與光通信和太陽能等關鍵長期趨勢相關的增長。

In the meantime, we will continue to maintain our strong balance sheet and employ a highly disciplined approach to capital allocation. Given the external environment, we're taking actions to preserve profitability, tightly manage capital expenditures and prioritize cash flow.

與此同時，我們將繼續保持強勁的資產負債表，並採用高度自律的資本配置方法。鑑於外部環境，我們正在採取行動保持盈利能力，嚴格管理資本支出並優先考慮現金流。

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)

（操作員說明）

And our first question will come from Mehdi Hosseini from Susquehanna.

我們的第一個問題將來自 Susquehanna 的 Mehdi Hosseini。

Two things I want to dig into. Is there a minimum OpEx that you can offer us? I understand there are a lot of moving parts, especially with macro headwinds. And I'm just trying to better understand how flexible you are with managing expenses.

我想深入研究兩件事。您可以為我們提供最低運營成本嗎？我知道有很多移動部件，尤其是在宏觀逆風的情況下。我只是想更好地了解您在管理費用方面的靈活性。

And the same thing with CapEx, there is no visibility as to when display will show a rebound. So should we assume that the CapEx trend into next year will show a decline on a year-over-year basis?

與資本支出相同，顯示器何時會顯示反彈是不可見的。那麼我們是否應該假設到明年的資本支出趨勢將同比下降？

Yes. Mehdi, what I would say on OpEx, we're certainly taking actions to pause spending in this current environment. As I mentioned, our goal is going to be to protect profitability and to protect our cash flow. I don't think, given the fact that we feel good about our long-term growth drivers, we're going to take significant actions at least at this point in time.

是的。 Mehdi，我會在 OpEx 上說，在當前環境下，我們肯定會採取行動暫停支出。正如我所提到的，我們的目標是保護盈利能力並保護我們的現金流。我認為，鑑於我們對我們的長期增長動力感覺良好這一事實，我們至少在這個時間點不會採取重大行動。

And with respect to capital, we're definitely pausing spending here as we go into the fourth quarter, and you should see the rate of our spending coming down a little bit.

在資本方面，隨著我們進入第四季度，我們肯定會暫停這裡的支出，你應該會看到我們的支出率有所下降。

Our next question?

我們的下一個問題？

(Operator Instructions)

（操作員說明）

Our next question comes from Steven Fox from Fox Advisors.

我們的下一個問題來自 Fox Advisors 的 Steven Fox。

Two questions on Optical, if I could. First of all, in terms of some of the project pauses or push-ups you're seeing, what gives you confidence that it's not something worse and that you see more delays, especially as you get into the winter months and with some of the issues in Europe?

如果可以的話，有兩個關於光學的問題。首先，就您所看到的一些項目暫停或俯臥撑而言，是什麼讓您相信這並沒有更糟，並且您會看到更多的延誤，尤其是當您進入冬季時歐洲的問題？

And then secondly, can you give us a sense for how the ramping of the plants, the new plants for Optical has helped -- I assume it helped margins during the quarter and how that helps into next year and what the offset is with the build-out for Arizona.

其次，您能否讓我們了解一下工廠的增產，Optical 的新工廠是如何幫助的——我認為它在本季度幫助了利潤率，以及這對明年有什麼幫助，以及構建的偏移量是多少- 離開亞利桑那州。

So Steve, first as to the macro, and you follow it all pretty closely. Macro demand in Opto is incredibly strong. But as you know, what we do is we try to make sure that we're supporting those customers that will be big, long-term players and the nature of telecommunications is that there is -- it's a pretty concentrated industry. So all that tends to happen is when some of our bigger customers end up changing their timing or altering their timing that's what leads to the lumpiness of our revenue. So we're highly confident in the demand drivers here in Opto. And as you know, I tend to be pretty pessimistic on Opto but just sort of overwhelming evidence that demand is very strong.

所以史蒂夫，首先是宏觀，你非常密切地關注它。 Opto 的宏觀需求非常強勁。但如您所知，我們所做的是努力確保我們支持那些將成為大型長期參與者的客戶，而電信的本質是 - 這是一個非常集中的行業。因此，當我們的一些大客戶最終改變他們的時間或改變他們的時間時，往往會發生這種情況，這就是導致我們收入不穩定的原因。因此，我們對 Opto 的需求驅動因素非常有信心。如你所知，我傾向於對 Opto 持悲觀態度，但只是有壓倒性的證據表明需求非常強勁。

Now as that -- how long these timing moves can happen? I think you're right to say what can happen during the winter or which tends to be a little bit slower time for us just seasonality-wise. And that's legitimate, whether in the last 3 months or a little longer than 3 months, that's hard to tell. What it's easy to tell though is demand for Opto is super strong.

現在就這樣 - 這些時間安排可以發生多長時間？我認為你說得對，冬天會發生什麼，或者只是季節性因素，這對我們來說往往會慢一些。這是合法的，無論是在過去 3 個月還是在 3 個月多一點的時間裡，都很難說。不過很容易看出，對 Opto 的需求非常強勁。

And then on the new plant impact?

然後對新工廠的影響？

And Steve, I was going to say, I think the plants that we recently opened are ramping fine. I feel like we've added some capacity. We'll be able to use that as we go forward, but it takes a little while for all the cost drag to kind of go away and we should see that sort of fully ramped and the financial impact in 2023.

史蒂夫，我要說的是，我認為我們最近開設的工廠發展良好。我覺得我們增加了一些容量。在我們前進的過程中，我們將能夠使用它，但是所有成本拖累需要一段時間才能消失，我們應該會看到這種情況完全增加，並在 2023 年產生財務影響。

And our next question comes from Martin Yang from Oppenheimer.

我們的下一個問題來自奧本海默的 Martin Yang。

First, can you maybe share with us 1 or 2 mostly closely monitored a reliable leading indicator for display segment where you will be more comfortable calling a recovery after seeing changes in those indicators? .

首先，您能否與我們分享 1 或 2 主要密切監控的顯示細分市場的可靠領先指標，在看到這些指標的變化後，您會更願意稱之為複蘇？ .

Great question, Martin. So our analytics are really good at being able to say, for instance, last year, we said there was going to be a correction in 2022. And then they're very good at doing things like calling a bottom because we can tell sort of where our panel makers are operating, and what exactly is happening with their inventory, et cetera. They're not as good at following the exact timing of a turn.

很好的問題，馬丁。因此，我們的分析非常擅長說，例如，去年，我們說 2022 年將出現修正。然後他們非常擅長做諸如底部的事情，因為我們可以判斷出我們的面板製造商在哪裡運營，以及他們的庫存到底發生了什麼，等等。他們不擅長跟踪轉彎的確切時間。

So for instance, our analytics would have said the panel maker industry should have started. It's correction in a much more robust way in quarter 4 of last year in quarter 2, but they didn't actually start until quarter 2 and then accelerated into quarter 3.

例如，我們的分析會說面板製造商行業應該已經開始。它在去年第 4 季度的第 2 季度以更強勁的方式進行了修正，但實際上直到第 2 季度才開始，然後加速到第 3 季度。

So though we're really comfortable with our analytics, they we're a bottom. The calling on when that upswing comes now really gets into sort of what is the psychological behavior of buyers in this industry. And so the way we tend to try to do that, it's a little softer but we do take a look at panel price inflection points. So that's where the absolute level is, but when do they turn and that is actually a buy signal for buyers, right, and it makes signal for panel makers.

因此，儘管我們對我們的分析非常滿意，但我們卻處於低谷。現在，當這種上升趨勢到來時，這種呼喚真的涉及到這個行業買家的心理行為。所以我們傾向於嘗試這樣做的方式，它有點軟，但我們確實看看面板價格拐點。所以這就是絕對水平的位置，但是他們什麼時候轉向，這實際上是買家的買入信號，對，它為面板製造商發出信號。

How is the retail and set maker commentary as we have interviews with them constantly? How are they actually feeling about what it is they're seeing because that's going to drive their behavior. And then finally is just how tight things are becoming in the value chain overall.

當我們不斷採訪他們時，零售和佈景製造商的評論如何？他們對所看到的事物的實際感受如何，因為這將推動他們的行為。最後是整個價值鏈中的緊張程度。

So as we look at all those things, what we'd say is we can't tell yet what exact month we see the sharp recovery, right? We'll need to see more of that accumulate. But we can't say with pretty high confidence that September was a bottom. And now it's just a question of when do we pop up.

因此，當我們審視所有這些事情時，我們要說的是，我們還不能確定我們看到急劇復甦的確切月份，對吧？我們需要看到更多的積累。但我們不能很有把握地說 9 月已經見底。現在這只是我們什麼時候彈出的問題。

Our next question will come from Wamsi Mohan from Bank of America.

我們的下一個問題將來自美國銀行的Wamsi Mohan。

Wendell to follow up on that prior question, would you say -- you guys have disclosed in the past levels of weeks of inventory in the display supply chain. I was wondering if you could characterize maybe not in absolute, but at least in relative terms where we are relative to past cycles in terms of weeks of inventory? And Ed, if I could, I appreciate the fact that you guys are largely hedged for 2023, but the yens obviously moved to [$149]. Your core rate is [$107]. Maybe you can give investors a little bit of a longer-term view on the yen hedging strategy and maybe some calibration on potential impact beyond 2023, how investors should think about it?

溫德爾跟進之前的問題，你會說 - 你們已經披露了過去幾周顯示器供應鏈中的庫存水平。我想知道您是否可以描述可能不是絕對的，但至少是相對而言，我們相對於過去週期的庫存週數？ Ed，如果可以的話，我很欣賞你們在 2023 年基本上被對沖的事實，但日元顯然移動到了 [149 美元]。您的核心費率為 [$107]。或許你可以給投資者一些關於日元對沖策略的長期看法，或許可以對 2023 年以後的潛在影響進行一些校準，投資者應該如何思考？

Thanks, Wamsi. Value chain inventory, we would say right now is at the healthy range and is starting to approach sort of a little bit tight for healthy. So that's like one of the analytics where we can say, "Okay, right, that the correction has done what it is it's supposed to do. So that's how we're feeling about overall value chain inventory. Does that answer your question on that item?

謝謝，萬西。價值鏈庫存，我們會說現在處於健康範圍內，並且開始接近健康的有點緊張。所以這就像我們可以說的分析之一，“好的，正確的，糾正已經完成了它應該做的事情。這就是我們對整體價值鏈庫存的感受。這是否回答了你的問題物品？

Yes, it does, Wendell. I was just wondering if there was any -- like I think you guys have mentioned in the past 10 to 15 weeks, depending on various times in various cycles. And are we at the lower end of that or at the higher end of that? And does that give you some increased confidence that we're at the bottom of sort of where utilization rates could be?

是的，確實如此，溫德爾。我只是想知道是否有任何 - 就像我想你們在過去 10 到 15 周中提到的那樣，取決於不同周期中的不同時間。我們是處於低端還是高端？這是否讓您更有信心相信我們處於利用率可能達到的最低點？

So the pandemic sort of changed what is healthy and what's not healthy and all the challenges in the supply chain. But what we should do is we should probably update you if this is a question that you have sort of how we view it overall. And Ed will follow up with you and give you the benefit of our thinking of how we analyze the industry.

因此，大流行改變了什麼是健康的，什麼是不健康的，以及供應鏈中的所有挑戰。但是我們應該做的是，如果這是一個您對我們整體如何看待它有疑問的問題，我們可能應該更新您。 Ed 將跟進您，讓您受益於我們對行業分析方式的思考。

And Wamsi, on the yen or on currency in general, I'll make a couple of comments. So I think you know we're obviously long in the yen. We are short in other currencies. Most currencies are weak -- or weakening versus the dollar. So we are taking an opportunity during this time period in some of the currencies where we're short. And they're weakening against the dollar to put hedges in place farther out, right? So we're trying to be opportunistic despite the fact that the yen is weak and that obviously impacts our overall core rates as we think about them sort of as a basket of exposures.

關於日元或一般貨幣的Wamsi，我將發表一些評論。所以我想你知道我們顯然做多日元。我們做空其他貨幣。大多數貨幣疲軟——或兌美元走弱。因此，我們在這段時間內抓住了一些我們做空的貨幣的機會。而且它們兌美元匯率走弱，以便在更遠的地方進行對沖，對吧？因此，儘管日元疲軟並且顯然會影響我們的整體核心利率，因為我們將其視為一攬子風險敞口，但我們仍試圖投機取巧。

And then with respect to the yen, we continue to look for ways to protect ourselves beyond 2023. We do have some hedges in place beyond 2023 and the farther out you go, the spot rate or the forward rate -- sorry, the forward rate is below where the current spot rate is, and that affords us some opportunity to do things further out. So we'll keep investors updated. We understand how people are thinking about it, and we're going to be opportunistic and try to protect ourselves at this current core rate level.

然後就日元而言，我們繼續尋找在 2023 年之後保護自己的方法。我們確實在 2023 年之後進行了一些對沖，而且你走得越遠，即期匯率或遠期匯率——抱歉，遠期匯率低於當前的即期匯率，這為我們提供了一些進一步做事的機會。因此，我們將及時更新投資者。我們了解人們的想法，我們將投機取巧，並嘗試在當前的核心利率水平上保護自己。

And our next question, please. Our next question comes from Tim Long from Barclays.

我們的下一個問題，請。我們的下一個問題來自巴克萊的 Tim Long。

Two questions, if I could, on the Optical segment. First, could you talk a little bit about -- you talked about the timing deals happens a lot in this industry. Maybe just looking at the next few quarters, are you seeing that a little bit more in the telco side or the data center side? Maybe if you can just parse out how those 2 splits are looking in the pipeline.

如果可以的話，關於光學部分的兩個問題。首先，你能談談 - 你談到了這個行業經常發生的時間交易。也許只看接下來的幾個季度，您是否在電信方面或數據中心方面看到了更多？也許如果您可以解析出這兩個拆分在管道中的外觀。

And then on the telco side, we're increasingly hearing throughout the world about pressures on macro and energy costs and whatnot potentially affecting fiber builds, which have been obviously really strong over the last few years. Are you starting to hear more caution from the customer base looking out maybe a little bit on the telco side because of macro? Or do you think there's enough government initiatives and just push for broadband to make that still a spending priority for the telco vertical?

然後在電信方面，我們越來越多地聽到世界各地關於宏觀和能源成本的壓力以及其他可能影響光纖構建的壓力，這些壓力在過去幾年中顯然非常強勁。您是否開始從客戶群中聽到更多的謹慎，因為宏觀的原因可能會在電信方面有所關注？還是您認為有足夠的政府舉措，只是推動寬帶使其仍然是電信垂直行業的支出優先事項？

Right. So I'd say that it is for our numbers like our post because when you've got macro environment that's really strong. And then all that's really happening is customer timing. So then it really ends up us being able to answer from our order book, what's going on. And in our order book, it would basically be some key telcos is just what's affecting our project timing more than anything else, right?

正確的。所以我會說這是為了我們的數字，就像我們的帖子一樣，因為當你擁有非常強大的宏觀環境時。然後真正發生的就是客戶時間。所以最終我們最終能夠從我們的訂單簿中回答發生了什麼。在我們的訂單中，基本上是一些關鍵的電信公司才是影響我們項目時間的最重要因素，對吧？

And so those are long-term projects. And so they kick off one, they conclude one, they start another. And so those can be lumpy.

所以這些都是長期項目。所以他們開始一個，他們結束一個，他們開始另一個。所以這些可能是塊狀的。

In terms of the macro, I don't know that we're the right ones to ask because there's so much demand, and we're still short especially in fiber and cable, that we'll tend to get more signals that they want more and more and they share how aggressive their plans are. So we're probably getting a lot more of that than we are the sort of macro, are they cautious.

就宏觀而言，我不知道我們是否適合提出要求，因為需求量很大，而且我們仍然很短缺，尤其是在光纖和電纜方面，我們往往會得到更多他們想要的信號他們越來越多地分享他們的計劃是多麼激進。因此，我們可能會得到比宏觀更多的東西，他們是否謹慎。

The combination of major government programs around the world that don't really start to kick in for almost another year, right, as well as catching up to all the demand that happened during the pandemic and how much of their capacity basic their guardrail capacity got consumed by demand as well as the 5G, cloud, all the broadband initiatives, all these things still a really sort of positive bullish signal to us. That doesn't mean that you're not right that they may be experiencing something in macro. We're just not hearing it. Does that make sense?

世界各地的主要政府計劃的組合，這些計劃在將近一年的時間裡才真正開始實施，對，以及趕上大流行期間發生的所有需求，以及他們的護欄能力得到了多少基本能力需求以及 5G、雲計算、所有寬帶計劃所消耗的資源，所有這些對我們來說仍然是一個非常積極的看漲信號。這並不意味著他們可能在宏觀上經歷某些事情是不對的。我們只是沒有聽到。那有意義嗎？

Yes, that does. Very, very helpful.

是的，確實如此。非常非常有幫助。

Our next question comes from Josh Spector from UBS.

我們的下一個問題來自瑞銀的 Josh Spector。

Just 2 quick ones, if I can. So just curious on your level of confidence on the pricing comments in display. A little bit surprised talking about up pricing there still into next year. It seems a little bit early at this point. So I'm curious if that depends on utilization rates increasing or is that something you see playing out potentially regardless of that scenario?

如果可以的話，只要2個快速的。所以只是好奇你對顯示的定價評論的信心水平。談到明年的價格上漲有點驚訝。在這一點上似乎有點早。因此，我很好奇這是否取決於利用率的提高，或者無論這種情況如何，您都認為這可能會發揮作用？

And then just a follow-up on the restructuring charges in the quarter. Can you just provide some comments on kind of what was restructured within the Emerging Growth Businesses?

然後只是對本季度重組費用的跟進。您能否就新興增長業務中的重組內容髮表一些評論？

So our confidence on price really has been driven by our performance throughout this correction and going into where our prices have been up to stable throughout every single stage of it, including here in this last quarter.

因此，我們對價格的信心實際上是由我們在整個修正過程中的表現推動的，並且在我們的每個階段，包括在上一季度，我們的價格一直保持穩定。

So you heard from Ed sort of the dynamics that is bit of led to this but we feel good about where we're at, and we expect pricing to continue to be stable as we exit the correction as it has been up to stable throughout going into the correction and to the bottom of the correction.

所以你從 Ed 那裡聽說了一些導致這種情況的動態，但我們對我們所處的位置感覺很好，我們預計隨著我們退出修正，價格將繼續保持穩定，因為它在整個過程中一直保持穩定進入修正和修正的底部。

And Josh, I'll make a comment on the restructuring charges. So what you saw this quarter was primarily related to sort of an early-stage business, moving more towards commercialization. Oftentimes, we have Gen 1 assets. And as we move into like a high-volume manufacturing state, we advance our technology. Our cost goes down significantly and we sort of obsolete those Gen 1 assets, and that's the primary driver of what happened in the third quarter.

還有喬希，我將對重組費用發表評論。因此，您在本季度看到的主要與某種早期業務有關，更傾向於商業化。通常，我們擁有第一代資產。隨著我們進入大批量製造狀態，我們也在推進我們的技術。我們的成本顯著下降，我們有點淘汰了那些第一代資產，這是第三季度發生的主要驅動力。

Our next question will come from Shannon Cross from Credit Suisse.

我們的下一個問題將來自瑞士信貸的 Shannon Cross。

I wanted to ask a bit about solar. Can you talk about what you're thinking may be the contribution from the IRA and a backlog or how we should think about orders and then potential for additional capacity over time? Because it seems to me like this could be a big opportunity for Hemlock, especially if you start bringing more capacity back to the U.S.

我想問一些關於太陽能的問題。您能否談談您的想法可能是 IRA 的貢獻和積壓，或者我們應該如何考慮訂單以及隨著時間的推移增加容量的潛力？因為在我看來，這對 Hemlock 來說可能是一個很大的機會，特別是如果你開始將更多產能帶回美國。

Shannon, so first, I would say we feel great about our Solar business. That was a great part of our ability to offset the lower volume of display in the third quarter. And our orders are strong, and we continue to sign customers up and sell out the capacity we've brought online. And we see that as a secular growth trend going forward. I think as we've shared, we have more capacity that we can bring online and we're in the process of evaluating that and the exact timing of when all that will happen. And we're certainly taking a look through all of the legislation that recently passed and how that impacts us. I think you can all -- you can view that as all positive for us, and we'll come back over time and talk a little bit about it more in detail.

香農，所以首先，我想說我們對我們的太陽能業務感覺很好。這是我們抵消第三季度較低的展示量的能力的重要組成部分。而且我們的訂單很強勁，我們繼續與客戶簽約並售罄我們在網上帶來的容量。我們認為這是未來的長期增長趨勢。我認為正如我們所分享的，我們有更多的容量可以上線，我們正在評估這一點以及所有這些發生的確切時間。我們當然會仔細研究最近通過的所有立法以及這對我們的影響。我認為你們都可以——你們可以認為這對我們來說都是積極的，我們會隨著時間的推移回來並更詳細地討論一下。

Shannon, you're right to look at it and say, "Gosh, I think this is probably really good for Corning." And we'll update you as we turn into the year on what we think that will mean.

香農，你看著它說：“天哪，我認為這對康寧來說可能真的很好。”當我們進入這一年時，我們會向您更新我們認為這意味著什麼。

And 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。

Just 2, if I could. First, more on the macro and demand backdrop. I know there was a question asked about Optical. But more broadly across your end markets, are you seeing tighter financial conditions impacting your customers' propensity to invest heading into next year?

如果可以的話，就2個。首先，更多關於宏觀和需求背景。我知道有一個關於光學的問題。但從更廣泛的終端市場來看，您是否看到財務狀況趨緊會影響客戶明年的投資傾向？

And then secondly, on pricing, I know you've talked a little bit about pricing increases, it sounds like there's a little bit more that could be coming in Optical. Just wondering if you've seen any sort of pushback or hesitancy to digest these increases in light of maybe some of the tighter financial conditions.

其次，在定價方面，我知道您已經談到了一些關於價格上漲的問題，聽起來光學可能會增加一點。只是想知道您是否看到任何形式的阻力或猶豫，以消化這些增長，因為可能是一些緊縮的財務狀況。

So we're seeing the economic conditions really play out in our end markets. So as I shared in my opening that as whether it's in smartphones, notebooks, panel maker utilization, automotive, we're seeing those markets that are highly consumer electronics-related or highly consumer-related to be down significantly already. As of yet, that has definitely caused our customers so they pace. We haven't seen them come off their long-term ideas about what they have to invest in.

因此，我們看到終端市場的經濟狀況確實在發揮作用。因此，正如我在開幕式中分享的那樣，無論是智能手機、筆記本電腦、面板製造商的利用率還是汽車，我們都看到那些與消費電子產品高度相關或與消費者高度相關的市場已經大幅下滑。到目前為止，這肯定會導致我們的客戶如此步履蹣跚。我們還沒有看到他們放棄他們對必須投資什麼的長期想法。

Much like us, our customers take a long time to build productive capacity and develop new technologies. So, so far, we haven't seen a reduction in their long-term appetite. Most people see that the economic concerns are already happening to them. So the real question is, when does it come out as opposed to getting ready for it. So I'd say that's sort of the animal spirits we're experiencing so far.

就像我們一樣，我們的客戶需要很長時間才能建立生產能力和開發新技術。所以，到目前為止，我們還沒有看到他們的長期食慾下降。大多數人看到經濟問題已經發生在他們身上。所以真正的問題是，它什麼時候出來，而不是為它做好準備。所以我想說這就是我們迄今為止所經歷的那種動物精神。

On price, yes, we are saying that in Opto, we've experienced some more inflation, and we will go -- going to be approaching our customers to more appropriately share that in this coming quarter. Throughout the year, we have done actually quite a good job of being able to share the inflation we experienced with our customers with price increases really across our business base. So, so far, we've been able to do that successfully and ask me the question again next quarter, and I'll tell you how this latest round went.

在價格方面，是的，我們是說在 Opto 中，我們經歷了更多的通貨膨脹，我們會去 - 將在下個季度與我們的客戶更適當地分享它。在這一年中，我們實際上做得非常好，能夠與我們的客戶分享我們所經歷的通貨膨脹，並在我們的業務基礎上真正實現價格上漲。所以，到目前為止，我們已經成功地做到了這一點，並在下個季度再次問我這個問題，我會告訴你最新一輪的進展情況。

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 I had a similar macro question for you, Wendell, which is, I mean, for a long time, you've been outperforming most of the underlying markets you participate in, and the driver there has been more Corning content in every end market. I'm just thinking as we sort of go into next year and the macro is tougher, have you seen in past down cycles, any change in customer willingness to sort of continue to increase Corning content, particularly in sort of a challenging macro. And any sort of pushback that you're seeing on pricing as well at this time given that inflation is obviously something you need to pass through. But at the same time, the macro is starting to worsen a bit more than expected. So are you starting to see any hesitation from customers as well in those negotiations?

我想我有一個類似的宏觀問題要問你，Wendell，我的意思是，很長一段時間以來，你的表現一直優於你所參與的大多數基礎市場，而且驅動力在每一端都有更多的康寧內容市場。我只是在想，當我們進入明年並且宏觀變得更加艱難時，您是否在過去的下行週期中看到，客戶願意繼續增加康寧內容的任何變化，尤其是在具有挑戰性的宏觀方面。鑑於通貨膨脹顯然是您需要通過的事情，因此您目前在定價方面看到的任何形式的阻力也是如此。但與此同時，宏觀經濟的惡化程度開始超出預期。那麼，您是否開始在這些談判中看到客戶的猶豫？

Great question. Most of our More Corning plays tend to reduce our customers' cost or improve their ability to deliver a vital customer function that they see. So in macro, I'd say, no, that we're not seeing a reduction in their capability. Let me give you a good example on cloud-based players. So on our latest set of innovations basically involve us being able to deliver totally engineered connectivity systems so that we save 40% of materials for them we can say, months and installation time. We improved the quality of everything. And so that in total, you give us a lot more price, a lot more revenue but it saves you money in time. That is like a typical angle for us in More Corning, and we're continuing to see good adoption of those.

好問題。我們的大多數更多康寧策略都傾向於降低我們客戶的成本或提高他們提供他們所看到的重要客戶功能的能力。所以在宏觀上，我會說，不，我們沒有看到他們的能力有所下降。讓我給你舉一個關於基於雲的播放器的好例子。因此，在我們最新的一系列創新中，我們能夠提供完全工程化的連接系統，這樣我們就可以為它們節省 40% 的材料，可以說是幾個月和安裝時間。我們提高了一切的質量。所以總的來說，你給了我們更多的價格，更多的收入，但它可以為你節省時間。這就像我們在 More Corning 中的一個典型角度，我們將繼續看到這些角度的良好採用。

[Totally missed] your question. Interesting is when you move into mobile consumer electronics is you're seeing some differing strategies. There's just some clear power winners that have happened there who continue to invest really strongly in improving the product attributes that they offer to their customers. And some of our other mobile consumer electronics players, particularly in China, sort of have lost in that premium battle and are doing a little bit less of our key innovations. But in total, the winners are investing more with us. So -- and (inaudible) still think that fundamental More Corning strategy is playing out well, very strong heartbeat. So that is still playing out. But I do understand the question. It's an interesting question. It's unique.

[完全錯過]你的問題。有趣的是，當您進入移動消費電子產品領域時，您會看到一些不同的策略。那裡發生了一些明顯的權力贏家，他們繼續大力投資以改善他們為客戶提供的產品屬性。我們的其他一些移動消費電子產品廠商，尤其是在中國，在這場高端競爭中有些失利，我們的關鍵創新也少了一些。但總的來說，贏家正在與我們進行更多投資。所以 - 並且（聽不清）仍然認為基本的更多康寧戰略正在發揮良好，非常強勁的心跳。所以這仍然在發揮作用。但我確實理解這個問題。這是一個有趣的問題。它是獨一無二的。

And our next question will come from Meta Marshall from Morgan Stanley.

我們的下一個問題將來自摩根士丹利的 Meta Marshall。

Maybe first question on Optical. I know it's been asked a couple of times, but just to kind of circle around it, that it's a couple of Americas-based service providers? Or is it more global in just what we're seeing? I know you said it was mostly within the telcos, but just wanted to get a sense is that largely concentrated within the U.S. or international?

也許是關於光學的第一個問題。我知道有人問過它幾次，但只是繞著它轉一圈，它是幾個美洲的服務提供商？還是我們所看到的更加全球化？我知道你說它主要在電信公司內部，但只是想了解一下主要集中在美國還是國際？

And then maybe a second question for me. Inventories have been a pretty big use of cash this year. Just wanted to get a sense of major drivers of that and if that's part of what you would expect to revert in Q4 to help with the -- achieve free cash flow generation targets.

然後也許是我的第二個問題。今年，庫存是現金的一大用途。只是想了解其中的主要驅動因素，如果這是您期望在第四季度恢復以幫助實現自由現金流生成目標的一部分。

First question, North America based, right, and relatively limited in terms of its -- the number of people that are involved. So telco North America based, just timing. And I think if you just talk to the industry more broadly, you'll see that [by enlarge], to refrain from almost all of our customers is we can't get enough. And so that's still the backdrop, that's still the heartbeat and it's just timing and a few key customers.

第一個問題，以北美為基地，對，並且在其參與人數方面相對有限。因此，基於北美的電信公司，只是時機。而且我認為，如果您只是更廣泛地與該行業交談，您會[放大]看到，要避免幾乎所有客戶，我們無法獲得足夠的信息。所以這仍然是背景，仍然是心跳，只是時機和一些關鍵客戶。

And Meta, on inventory, you're right. You can see it in our cash flow. We've definitely built a lot of inventory through September and we definitely need to make that reverse. That's what we're thinking, it will start to happen in the fourth quarter and as we go into 2023. I mean I think there are a few factors that drive it higher. And it's one of the reasons why we haven't been able to sort of slow it down and reverse it sooner. First and foremost, just in general, the supply chain has been difficult, and we want to make sure we can serve our customers, so we're carrying a little more inventory than we might otherwise have. And as we brought our sales forecast down for the back half of the year, we need to sort of catch up and digest a little bit of the inventory that we have and that we've produced.

Meta，在庫存上，你是對的。你可以在我們的現金流中看到它。到 9 月，我們肯定已經建立了很多庫存，我們肯定需要扭轉這種局面。這就是我們的想法，它將在第四季度開始發生，隨著我們進入 2023 年。我的意思是，我認為有幾個因素推動它走高。這也是我們無法放慢速度並儘快扭轉它的原因之一。首先，總的來說，供應鏈一直很困難，我們想確保我們可以為客戶服務，所以我們的庫存比原本可能要多一點。由於我們下調了下半年的銷售預測，我們需要趕上並消化我們擁有和生產的一些庫存。

And then lastly, just the cost of the inventory, right? So as inflation hits us, it manifests itself in inventory, and then we get that back as we raise price when we sell that through. So there's a little bit of a delay in that. Those are really the factors that drive it up. And yes, our goal is to get it down starting here in the fourth quarter.

最後，只是庫存成本，對嗎？因此，當通貨膨脹襲擊我們時，它會在庫存中體現出來，然後當我們通過提高價格出售時，我們就會把它拿回來。所以這有一點延遲。這些確實是推動它的因素。是的，我們的目標是從第四季度開始。

And our last question will come from Mehdi Hosseini from Susquehanna.

我們的最後一個問題將來自 Susquehanna 的 Mehdi Hosseini。

Just a quick follow-up. If I were to go back to late 2019, 2020, the last time that your Display revenue were declining, the averaged 20% net income. And if I fast forward to your Q3, your revenues are about $70 million less than that period, but you're still able to get almost to 20% net margin. Is it just a reflection of the trends that have come offline? Or is this something else that helps with relatively better margin given the lower revenue volume, an insight would be great.

只是快速跟進。如果我要回到 2019 年底，即 2020 年，也就是您的展示廣告收入上一次下降的時候，平均淨收入為 20%。如果我快進到你的第三季度，你的收入比那個時期少了大約 7000 萬美元，但你仍然可以獲得幾乎 20% 的淨利潤率。它只是反映了已經下線的趨勢嗎？或者考慮到較低的收入，這是否有助於獲得相對較高的利潤率，洞察力會很好。

Awesome question. So first, I'd say you're right. And that's one of the things that why we feel good about our execution in display during this correction. So what you're seeing come through is all that tremendous improvement in productivity that our new technology brings and the outstanding cost performance that we've been able to do with that. So [late] with a long period of time of prices being stable to up. And so that is what we've been trying to do in Display. That has been our strategy in Display as we build our strength through this time period. Very stable pricing, a very stable market position and then use our big technology lever to continue to drive our cost performance and drive up our profitability. And it's one of the things we're excited about when we see these -- the correction be over and the market start to move up and glass demand to go up because the incrementals will be powerful and a beautiful thing to behold.

真棒的問題。所以首先，我會說你是對的。這就是為什麼我們在這次更正期間對我們的展示執行感覺良好的原因之一。因此，您所看到的是我們的新技術帶來的生產力的巨大改進以及我們已經能夠做到的出色的成本性能。所以[後期]價格長期穩定上漲。這就是我們一直在 Display 中嘗試做的事情。這一直是我們在展示廣告中的策略，因為我們在這段時間內建立了自己的實力。非常穩定的定價，非常穩定的市場地位，然後利用我們的大技術槓桿繼續推動我們的成本績效並提高我們的盈利能力。當我們看到這些時，這是我們感到興奮的事情之一——修正結束，市場開始上漲，玻璃需求上升，因為增量將是強大的，而且是一件美麗的事情。

Thanks, Mehdi and thanks, Wendell. Okay. Thank you all for joining us this morning. Before we close, I wanted to let you know that we will attend the Credit Suisse 26th Annual Technology Conference on November 29 and the Barclays Global Technology, Media and Telecommunications Conference on December 8.

謝謝，梅赫迪，謝謝，溫德爾。好的。感謝大家今天早上加入我們。在結束之前，我想讓您知道，我們將參加 11 月 29 日的瑞士信貸第 26 屆年度技術會議和 12 月 8 日的巴克萊全球技術、媒體和電信會議。

Additionally, we'll be hosting management visits to investor offices in select cities.

此外，我們將在選定城市舉辦對投資者辦公室的管理訪問。

Finally, a replay of today's call will be available on our site starting later this morning.

最後，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。

So once again, thank you all for joining us. Operator, that concludes our call. Please disconnect all lines.

因此，再次感謝大家加入我們。接線員，這結束了我們的通話。請斷開所有線路。

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

謝謝你。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。