康寧 (GLW) 2020 Q3 法說會逐字稿

Welcome to the Corning Inc.

歡迎來到康寧公司。

Quarter 3 2020 Earnings Call.

2020 年第三季度財報電話會議。

(Operator Instructions)

（操作員說明）

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

我很高興向您介紹投資者關係副總裁 Ann Nicholson。

Thank you, Catherine, and good morning.

謝謝你，凱瑟琳，早上好。

And welcome to our third quarter 2020 earnings call.

歡迎來到我們的 2020 年第三季度財報電話會議。

With me today are Wendell Weeks, Chairman and Chief Executive Officer; Tony Tripeny, Executive Vice President and Chief Financial Officer; and Jeff Evenson, Executive Vice President and Chief Strategy Officer.

今天和我在一起的是董事長兼首席執行官 Wendell Weeks； Tony Tripeny，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.

我想提醒您，今天的言論包含前瞻性陳述，屬於 1995 年《私人證券訴訟改革法案》的含義。

Those statements involve risks, uncertainties and other factors that could cause actual results to differ materially.

這些陳述涉及風險、不確定性和其他可能導致實際結果大不相同的因素。

These factors are detailed in the company's financial reports.

這些因素在公司的財務報告中有詳細說明。

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.

您還應該注意，除非我們特別指出我們的評論與 GAAP 數據相關，否則我們將使用核心績效指標來討論我們的綜合結果。

Our core performance measures are non-GAAP measures used by management to analyze the business.

我們的核心績效指標是管理層用來分析業務的非 GAAP 指標。

Reconciliation of core results to comparable GAAP value can be found in the Investor Relations section of our website at corning.com.

可以在我們網站 corning.com 的投資者關係部分找到核心結果與可比較的 GAAP 值的對賬。

You may also access core results on our website with downloadable financials in the interactive analyst center.

您還可以在我們的網站上訪問核心結果，並在交互式分析師中心使用可下載的財務數據。

Supporting slides are being shown live on our webcast, we encourage you to follow along.

支持的幻燈片正在我們的網絡直播中實時播放，我們鼓勵您繼續關注。

They're also available on our website for downloading.

它們也可以在我們的網站上下載。

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

現在我會把電話轉給溫德爾。

Thank you, Ann, and good morning, everyone.

謝謝你，安，大家早上好。

Today, we reported third quarter results, demonstrating that the company is strong, financially healthy and well positioned for growth.

今天，我們公佈了第三季度業績，表明公司實力雄厚、財務狀況良好且為增長做好了準備。

Sales were $3 billion, up 16% sequentially.

銷售額為 30 億美元，環比增長 16%。

EPS grew 72% sequentially to $0.43, as higher sales and strong manufacturing execution resulted in operating margin expanding to 18.3%, up 710 basis points sequentially and 20 basis points year-over-year.

每股收益環比增長 72% 至 0.43 美元，原因是銷售額增加和製造執行力強勁導致營業利潤率擴大至 18.3%，環比增長 710 個基點，同比增長 20 個基點。

We generated $518 million of free cash flow and finished the quarter with $2.5 billion in cash.

我們產生了 5.18 億美元的自由現金流，並以 25 億美元的現金結束了本季度。

Our financial performance has improved significantly since April, and we expect a strong fourth quarter.

自 4 月以來，我們的財務業績有了顯著改善，我們預計第四季度將表現強勁。

Nevertheless, we remain vigilant and continue to adapt appropriately to multiple disruptive forces playing out around the world from the pandemic, the civil unrest to recession and geopolitical struggles.

儘管如此，我們仍保持警惕，並繼續適當地適應從大流行病、內亂到經濟衰退和地緣政治鬥爭的多種破壞性力量在世界範圍內發揮作用。

We've been rising to the challenges since day 1, and our priorities remain clear.

從第一天開始，我們就一直在迎接挑戰，我們的優先事項仍然很明確。

First, we must make our values evident in our actions.

首先，我們必須在我們的行動中體現我們的價值觀。

Our commitment to the health, safety and well-being of our employees underlines every facet of our operations.

我們對員工健康、安全和福祉的承諾體現在我們運營的方方面面。

We're dedicating resources and providing leadership to support our communities around the world.

我們正在投入資源並發揮領導作用，以支持我們在世界各地的社區。

We've launched unity campaigns as well as racial and social equality programs targeting the multitude of hardships people are confronting right now.

我們發起了團結運動以及種族和社會平等計劃，以應對人們目前面臨的眾多困難。

And when it comes to the global health fight, we're all in, mobilizing our capabilities to combat the virus directly.

當談到全球衛生鬥爭時，我們全力以赴，調動我們的能力直接與病毒作鬥爭。

We must also safeguard our financial health.

我們還必須保護我們的財務健康。

Our third quarter results show that our decisive actions are providing clear benefits as we leverage cost savings and increase efficiencies across the company.

我們第三季度的業績表明，我們果斷的行動帶來了明顯的好處，因為我們利用成本節約和提高整個公司的效率。

Regardless of the depth or duration of global uncertainty, we're doing everything in our power to keep the company strong, and it's working.

無論全球不確定性的深度或持續時間如何，我們都在竭盡全力保持公司的強大，而且它正在發揮作用。

Now to ensure that we emerge even stronger, we're continuing to invest to create additional revenue streams.

現在，為了確保我們變得更加強大，我們將繼續投資以創造額外的收入來源。

We're inventing new-to-the-world materials and manufacturing processes as well as co-innovating new solutions in partnership with our customers.

我們正在發明全新的材料和製造工藝，並與我們的客戶合作共同創新新的解決方案。

The relevance of our portfolio puts Corning at the heart of ongoing innovation with industry leaders, and we continue to solve our customers' toughest technology challenges.

我們產品組合的相關性使康寧成為與行業領導者一起不斷創新的核心，我們將繼續解決客戶最棘手的技術挑戰。

You may have seen Apple's recent promotion of ceramic shield for the iPhone 12.

你可能已經看到蘋果最近為 iPhone 12 宣傳的陶瓷護罩。

Their featuring are new-to-the-world material, which is the world's first, highly transparent color-free glass ceramic with performance that meets the rigorous demands put on smartphone cover materials.

他們的特色是全新的材料，這是世界上第一個高透明無色玻璃陶瓷，其性能滿足對智能手機外殼材料的嚴格要求。

This latest innovation with Apple exemplifies our ongoing strategy of consistent, long-term value creation by combining our deep expertise in glass science, ceramic science and optical physics with our unparalleled manufacturing and engineering capabilities.

通過將我們在玻璃科學、陶瓷科學和光學物理學方面的深厚專業知識與我們無與倫比的製造和工程能力相結合，與 Apple 合作的這一最新創新體現了我們持續不斷地創造長期價值的戰略。

Ceramic shield melds the attributes that we love about glass, create optics and retain strength, with the attributes we love about ceramics, most notably, it's toughness.

陶瓷屏蔽融合了我們喜愛的玻璃屬性、創造光學效果和保持強度，以及我們喜愛的陶瓷屬性，最顯著的是它的韌性。

Ceramic shield consists of ceramic crystals within a glass matrix.

陶瓷屏蔽由玻璃基質內的陶瓷晶體組成。

There were 2 big inventions here.

這裡有兩項重大發明。

The first was keeping the best damage-resistant attributes of both glass and ceramics.

首先是保持玻璃和陶瓷的最佳抗損傷特性。

The second was ensuring high optical transparency by growing index-matched nanocrystals inside the glass matrix that are 1/10 the wavelength of light.

第二個是通過在玻璃基質內生長折射率匹配的納米晶體來確保高光學透明度，這些納米晶體的波長是光波長的 1/10。

As you recall, Apple made 2 investments in Corning, totaling $450 million, as part of their advanced manufacturing fund and their commitment to foster innovation among American manufacturers.

您還記得，Apple 對康寧進行了 2 筆投資，總計 4.5 億美元，這是其先進製造基金的一部分，也是他們致力於促進美國製造商創新的一部分。

We thank Apple for our long-standing product development partnership and their investments in new manufacturing technology centered in our Harrodsburg, Kentucky facility.

我們感謝 Apple 與我們建立了長期的產品開發合作夥伴關係，並感謝他們對以我們位於肯塔基州哈羅茲堡的工廠為中心的新製造技術的投資。

We could not be prouder to be a key component in the iPhone 12.

作為 iPhone 12 的關鍵部件，我們感到無比自豪。

Now it's important to note, the iPhone 12 and many other flagship phones that we are also proud to be part of, support 5G.

現在需要注意的是，iPhone 12 和我們也引以為豪的許多其他旗艦手機都支持 5G。

5G matters to us.

5G 對我們很重要。

The density of fiber necessary to deliver its promise is yet another example.

實現其承諾所需的纖維密度是另一個例子。

You've seen us illustrate that up to 100x more fiber is required to deploy 5G in a city than 4G.

您已經看到我們說明在城市中部署 5G 所需的光纖比 4G 多 100 倍。

This week, we announced a new product design to help operators dramatically boost the speed and reduce the cost of their outdoor deployments.

本週，我們宣布了一項新產品設計，以幫助運營商顯著提高室外部署的速度並降低其成本。

And we're embarking on new work to support Verizon's efforts to extend 5G indoors.

我們正在著手開展新工作，以支持 Verizon 在室內擴展 5G 的努力。

The relevance of our portfolio and our deep customer relationships, as illustrated by these advancements, keep us at the center of the inexorable shift to optical.

正如這些進步所表明的那樣，我們的產品組合的相關性和我們深厚的客戶關係使我們始終處於向光學的不可阻擋的轉變的中心。

Stepping back, in all the industries we serve, important market trends offer new challenges that Corning is uniquely qualified to address and new opportunities to integrate more Corning content into products.

退一步說，在我們服務的所有行業中，重要的市場趨勢提供了康寧有能力應對的新挑戰，以及將更多康寧內容整合到產品中的新機遇。

This is an especially powerful value creation lever in times of economic uncertainty.

在經濟不確定時期，這是一個特別強大的價值創造槓桿。

Because we aren't exclusively relying on people buying more stuff.

因為我們並不完全依賴人們購買更多東西。

We're putting more Corning into the products that people are already buying.

我們在人們已經購買的產品中加入了更多的康寧。

We are clearly seeing the benefits of this lever in today's results as innovation adoption drove Specialty Materials sales up 23% year-over-year despite a declining smartphone market.

我們在今天的業績中清楚地看到了這一槓桿的好處，因為儘管智能手機市場在下滑，但創新的採用推動特種材料銷售額同比增長 23%。

This type of outperformance is not unique.

這種出色的表現並不是獨一無二的。

From 2016 to 2019, we added $500 million in sales or 42% cumulatively while smartphone sales actually went down, and we're extending that growth streak this year.

從 2016 年到 2019 年，我們的銷售額增加了 5 億美元，累計增長了 42%，而智能手機的銷售額實際上卻下降了，今年我們將延續這種增長勢頭。

In Environmental Technologies, we grew sales 16% in 2019, much faster than the underlying unit demand as automakers added gas particulate filters to cars.

在環境技術領域，我們在 2019 年的銷售額增長了 16%，遠快於基本單位需求，因為汽車製造商為汽車增加了氣體微粒過濾器。

And we, again, saw outperformance this quarter with sequential sales up 68%.

我們再次看到本季度的出色表現，連續銷售額增長了 68%。

These are additional examples of the more Corning strategy at work and why the content story is so powerful for us.

這些是更多康寧策略在起作用的其他例子，以及為什麼內容故事對我們如此強大。

I want to stress one additional point.

我想再強調一點。

You often hear us say that our core technologies enable life-changing capabilities.

您經常聽到我們說，我們的核心技術具有改變生活的能力。

In these times, we're increasing focus on life-saving innovations.

在這些時候，我們越來越關注拯救生命的創新。

Safe widespread vaccine delivery is one of society's top priorities, and glass packaging is critical.

廣泛安全地提供疫苗是社會的首要任務之一，而玻璃包裝至關重要。

Our Valor innovation will help enable faster filling line speeds and increased patient safety.

我們的 Valor 創新將有助於加快灌裝線速度並提高患者安全性。

Right now, we're expanding capacity and supplying glass vials for vaccines as part of Operation Warp Speed, all while leveraging our leadership in life sciences to help support COVID diagnostic testing and virus research efforts.

目前，作為 Operation Warp Speed 的一部分，我們正在擴大產能並為疫苗供應玻璃瓶，同時利用我們在生命科學領域的領先地位來幫助支持 COVID 診斷測試和病毒研究工作。

Additionally, reduce fine particulate pollution, the objective of our filtration products, appears to be helpful for reducing infection rates.

此外，我們過濾產品的目標是減少細顆粒物污染，這似乎有助於降低感染率。

And we're excited about recent university lab test showing that our Guardiant antimicrobial glass particles kill bacteria and viruses, including SARS-CoV-2.

我們對最近的大學實驗室測試感到興奮，該測試表明我們的 Guardiant 抗菌玻璃顆粒可以殺死細菌和病毒，包括 SARS-CoV-2。

We're also well positioned to contribute as consumers continue to adapt to a world with social distancing.

隨著消費者繼續適應保持社交距離的世界，我們也做好了貢獻的準備。

For example, fiber increases the capacity and performance of networks, and glass provides the primary window to information and entertainment.

例如，光纖增加了網絡的容量和性能，玻璃提供了信息和娛樂的主要窗口。

We're confident that we can bring further innovations to bear in many vital areas as the world addresses and recovers from its current challenges.

我們相信，隨著世界應對當前的挑戰並從中恢復過來，我們可以在許多重要領域帶來進一步的創新。

Overall, we had a very strong quarter on almost every dimension.

總體而言，我們幾乎在每個方面都有一個非常強勁的季度。

From an innovation perspective, I just reviewed our significant advancements.

從創新的角度來看，我剛剛回顧了我們的重大進步。

Financially, we grew sales at double-digit rates sequentially and expanded margins to grow our profitability even faster.

在財務上，我們的銷售額連續以兩位數的速度增長，並擴大了利潤率，從而更快地提高了我們的盈利能力。

Operationally, we performed well, and I'd like to share a few examples.

在運營上，我們表現不錯，我想分享幾個例子。

In the midst of the pandemic, we deployed expert engineering teams to start-up our Gen 10.5 melting operations in both Wuhan and Guangzhou.

在大流行期間，我們部署了專家工程團隊，在武漢和廣州啟動了我們的 10.5 代熔化作業。

These facilities are positioning us well to capture the fast-growing demand for large TVs.

這些設施使我們能夠很好地抓住對大型電視快速增長的需求。

In Mobile Consumer Electronics, we successfully scaled up a new-to-the-world manufacturing process and product to meet Apple's iPhone launch.

在移動消費電子產品方面，我們成功地擴大了世界上全新的製造工藝和產品，以滿足蘋果 iPhone 的發布。

In Automotive, we flexed our operations to adjust to the fast-paced ramp-up at OEMs after they significantly reduced production in quarter 2.

在汽車行業，我們調整了運營以適應 OEM 在第二季度大幅減產後的快速增長。

In Optical Communications, we successfully adjusted our cost to the current market environment, resulting in significant profitability expansion despite flattish sales on a quarter-over-quarter basis.

在光通信方面，我們成功地根據當前的市場環境調整了成本，儘管銷售額環比持平，但盈利能力顯著擴大。

We also remain vigilant in our actions to safeguard the company's financial strength.

我們還對維護公司財務實力的行動保持警惕。

We're proud of our execution, especially given the current global uncertainties.

我們為我們的執行感到自豪，特別是考慮到當前的全球不確定性。

Clearly, our employees around the world are dedicated to living our values and giving their best every day.

顯然，我們在世界各地的員工每天都致力於踐行我們的價值觀並竭盡全力。

Now I'll turn the call over to Tony, so he can give you some more insight on the quarter.

現在我會把電話轉給托尼，這樣他就可以給你更多關於這個季度的見解。

Thank you, Wendell, and good morning.

謝謝你，溫德爾，早上好。

We had a very strong third quarter.

我們有一個非常強勁的第三季度。

As Wendell highlighted, we executed effectively, and we bolstered our healthy balance sheet despite the ongoing macroeconomic challenges.

正如 Wendell 所強調的那樣，我們執行有效，儘管宏觀經濟面臨持續挑戰，但我們加強了健康的資產負債表。

Sales growth and cost actions led to strong sequential margin expansion, further demonstrating that our operational adjustments are working.

銷售增長和成本行動導致利潤率連續強勁增長，進一步證明我們的運營調整正在奏效。

We've made significant adjustments to align our cost and operating plan with the lower anticipated sales.

我們進行了重大調整，以使我們的成本和運營計劃與較低的預期銷售額保持一致。

In total, Corning continues to demonstrate that it has the resources to deliver on our commitments and extend our leadership as we continue to focus on operational excellence, cash flow generation and prudent capital allocation.

總的來說，隨著我們繼續專注於卓越運營、現金流產生和審慎的資本配置，康寧繼續證明它有資源來履行我們的承諾並擴大我們的領導地位。

Before I get into the details of our performance and results, I want to call out the changes at Hemlock during Q3 and cover the differences between GAAP and core results.

在詳細介紹我們的績效和結果之前，我想先介紹一下 Hemlock 在第三季度的變化，並介紹 GAAP 和核心結果之間的差異。

On September 9, Hemlock Semiconductor Group redeemed DuPont's 40.25% ownership interest in the company, which transformed Corning's long time ownership in Hemlock into a majority position.

9 月 9 日，Hemlock 半導體集團贖回了杜邦在該公司的 40.25% 股權，這將康寧在 Hemlock 的長期所有權轉變為多數股權。

In the second transaction, Hemlock purchased certain manufacturing assets from DuPont and gained control of a critical raw material, thereby becoming a leading low-cost producer of ultra-pure polysilicon to the semiconductor industry.

在第二筆交易中，Hemlock 從杜邦手中收購了部分製造資產，並獲得了一項關鍵原材料的控制權，從而成為半導體行業領先的超純多晶矽低成本生產商。

Hemlock's leadership position is backed by attractive long-term take-or-pay customer contracts with upfront payments.

Hemlock 的領導地位得到了有吸引力的長期照付不議客戶合同的支持，並提供預付款。

Now we're very excited about these transactions.

現在我們對這些交易感到非常興奮。

They are good for Hemlock, good for Corning and good for our shareholders.

它們對 Hemlock、Corning 和我們的股東都有好處。

We didn't put any money into the transaction, and Hemlock generates a lot of cash.

我們沒有在交易中投入任何資金，Hemlock 產生了大量現金。

So its debt is mostly paid back in 1 year.

所以它的債務大部分在 1 年內償還。

Corning improves its financials by adding sales and earnings.

康寧通過增加銷售額和收益來改善其財務狀況。

In the third quarter, we recognized $31 million of sales from the newly consolidated Hemlock, and Hemlock will add approximately $150 million in annual cash flow.

第三季度，我們從新合併的 Hemlock 確認了 3100 萬美元的銷售額，Hemlock 將增加約 1.5 億美元的年度現金流。

Please see our web disclosure for helpful consolidation details.

請參閱我們的網絡披露以獲取有用的合併詳細信息。

Now on to GAAP.

現在進入公認會計原則。

The largest differences between our third quarter GAAP and core results are a noncash gain associated with the Hemlock transaction, ongoing restructuring charges, which are primarily noncash, and a mark-to-market adjustment for our currency hedge contracts.

我們第三季度 GAAP 和核心業績之間的最大差異是與 Hemlock 交易相關的非現金收益、持續的重組費用（主要是非現金）以及我們的貨幣對沖合約的按市值調整。

Now with respect to the mark-to-market adjustments, GAAP accounting requires earnings translation hedge contracts and foreign debt settling in future periods to be mark-to-market and recorded at current value at the end of each quarter even though those contracts will not be settled in the current quarter.

現在關於按市值調整，GAAP 會計要求未來期間的收益轉換對沖合同和外債結算按市值計價並在每個季度末按當前價值記錄，即使這些合同不會在當前季度結算。

For us, this reduced GAAP earnings in Q3 by $103 million.

對我們來說，這使第三季度的 GAAP 收益減少了 1.03 億美元。

To be clear, this mark-to-market accounting had no impact on our cash flow.

需要明確的是，這種按市值計價的會計方法對我們的現金流沒有影響。

Our currency hedges protect us economically from foreign exchange rate fluctuations and provide higher certainty for our earnings and cash flow, our ability to invest for growth and our future shareholder distributions.

我們的貨幣對沖保護我們在經濟上免受匯率波動的影響，並為我們的收益和現金流、我們為增長而投資的能力以及我們未來的股東分配提供更高的確定性。

Our non-GAAP or core results provide additional transparency into operations by using a constant currency rate aligned with the economics of our underlying transactions.

我們的非 GAAP 或核心結果通過使用與我們的基礎交易的經濟狀況相一致的恆定匯率，為運營提供了額外的透明度。

We're very pleased with our hedging program and the economic certainty it provides.

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。

We've received $1.7 billion in cash under our hedge contracts since their inception more than 5 years ago.

自 5 年多前成立以來，我們根據對沖合同收到了 17 億美元的現金。

Now I'll walk through our third quarter performance.

現在我將介紹我們第三季度的表現。

At the outset of the pandemic, we committed to preserving our financial strength and positioning the company to emerge even stronger.

在大流行開始時，我們致力於保持我們的財務實力，並使公司定位更加強大。

In Q1 and Q2, we told you we were responding to economic uncertainty by making significant operational adjustments.

在第一季度和第二季度，我們告訴過您我們正在通過進行重大運營調整來應對經濟不確定性。

We said we'd reduced cost and capital spend to align with lower anticipated sales.

我們說我們會降低成本和資本支出，以配合較低的預期銷售額。

And while ramping down production and reducing inventory impacts margins, we said that when sales growth resumed, we expect improved profitability.

雖然減產和減少庫存會影響利潤率，但我們表示，當銷售恢復增長時，我們預計盈利能力會提高。

Now looking at the third quarter, we grew 16% -- sales grew 16% sequentially to $3 billion, and our operating margin expanded by 710 basis points sequentially, to 18.3%.

現在來看第三季度，我們增長了 16%——銷售額環比增長 16% 至 30 億美元，營業利潤率環比增長 710 個基點，達到 18.3%。

This resulted in net income of $380 million and an EPS of $0.43, up 72% sequentially.

這導致淨收入為 3.8 億美元，每股收益為 0.43 美元，環比增長 72%。

We also said we would maintain a strong cash balance and generate positive free cash flow for the year.

我們還表示，我們將在今年保持強勁的現金餘額並產生正的自由現金流。

In the third quarter, free cash flow grew to $518 million.

第三季度，自由現金流增長至 5.18 億美元。

Cumulative free cash flow for the first 3 quarters was $484 million.

前 3 季度的累計自由現金流為 4.84 億美元。

We ended the quarter with a cash balance of $2.5 billion and expect to generate additional positive free cash flow in the fourth quarter as we continue to reduce cost, control inventory and execute well overall.

本季度結束時，我們的現金餘額為 25 億美元，隨著我們繼續降低成本、控制庫存和整體執行良好，預計第四季度將產生額外的正自由現金流。

As a result, I am confident that we will succeed on our free cash flow goals.

因此，我相信我們將成功實現我們的自由現金流目標。

These actions -- the actions we're taking are clearly working.

這些行動——我們正在採取的行動顯然正在奏效。

We have delivered great operational improvements, which started to show results in Q2 and really accelerated in Q3.

我們已經實現了巨大的運營改進，這些改進在第二季度開始顯示結果，並在第三季度真正加速。

We expect the benefit of these actions to continue in Q4, contributing to another strong quarter.

我們預計這些行動的好處將在第四季度繼續，為另一個強勁的季度做出貢獻。

Now let's review the business segments.

現在讓我們回顧一下業務部門。

In Display Technologies, third quarter sales were $827 million, up 10% sequentially, and net income was $196 million, up 29% sequentially.

在顯示技術領域，第三季度銷售額為 8.27 億美元，環比增長 10%，淨利潤為 1.96 億美元，環比增長 29%。

Display glass volume grew approximately 10% sequentially, as panel makers increase utilization, resulting in strong incrementals.

顯示器玻璃銷量環比增長約 10%，因為面板製造商提高了利用率，導致強勁的增量。

Sequential price declines were moderate, as expected.

正如預期的那樣，連續的價格下跌是溫和的。

From an end market perspective, it appears that the impact from COVID-19 has been a positive.

從終端市場的角度來看，COVID-19 的影響似乎是積極的。

In developed markets, consumers are prioritizing in-home entertainment.

在發達市場，消費者優先考慮家庭娛樂。

Globally, work and study from home trends are growing.

在全球範圍內，在家工作和學習的趨勢正在增長。

This is increasing demand for TV and IT products.

這增加了對電視和 IT 產品的需求。

On the other hand, smartphone demand has been down.

另一方面，智能手機需求一直在下降。

In total, the retail market, as measured in square feet of glass, is up mid-single digits year-to-date through August.

總的來說，零售市場（以玻璃面積計算）從年初至今到 8 月增長了中等個位數。

Of course, the upcoming holiday retail season will be a big factor in how the market actually plays out for the full year.

當然，即將到來的假日零售季將是影響全年市場實際表現的一個重要因素。

Longer term, we remain confident that TV screen size will continue to grow.

從長遠來看，我們仍然相信電視屏幕尺寸將繼續增長。

TVs at 65 inches or larger grew 40% year-to-date through August.

截至 8 月，65 英寸或更大尺寸的電視今年迄今增長了 40%。

And we are well positioned to capture the majority of that growth with Gen 10.5, which is the most efficient gen size for large TV manufacturing.

我們有能力通過 Gen 10.5 抓住大部分增長，這是大型電視製造的最有效的一代規模。

We continue to expect display pricing to decline by a mid-single-digit percentage in 2020.

我們繼續預計 2020 年顯示器價格將下降中個位數百分比。

We believe that 3 factors drive a favorable glass pricing environment.

我們認為有 3 個因素推動了有利的玻璃定價環境。

First, we expect glass supply/demand to be balanced to tight.

首先，我們預計玻璃供需平衡偏緊。

For Corning, we are ramping our Gen 10.5 tanks to align with panel makers' schedules.

對於康寧，我們正在提升我們的 Gen 10.5 槽，以配合面板製造商的時間表。

Second, our competitors continue to face profitability challenges at current pricing levels.

其次，我們的競爭對手在當前定價水平下繼續面臨盈利挑戰。

And third, display glass manufacturing requires periodic investments in existing capacity to maintain operations.

第三，顯示器玻璃製造需要對現有產能進行定期投資以維持運營。

Glass prices must support acceptable returns on those investments.

玻璃價格必須支持這些投資的可接受回報。

In Optical Communications, third quarter sales grew 10% sequentially to $909 million, as carrier spending and deployments remained stable and enterprise sales grew slightly.

在光通信領域，第三季度銷售額環比增長 10% 至 9.09 億美元，運營商支出和部署保持穩定，企業銷售額略有增長。

Net income grew by $34 million or 42% to $115 million, driven by improving cost performance.

在成本效益提高的推動下，淨收入增長了 3400 萬美元或 42%，達到 1.15 億美元。

Looking forward, demand on the network is at an all-time high, and we are seeing positive statements on capacity expansion from network operators.

展望未來，對網絡的需求處於歷史最高水平，我們看到網絡運營商對擴容的積極表態。

Currently, COVID-related factors hamper the ability to invest broadly in networks, and operators are focusing efforts on addressing capacity bottlenecks.

當前，與COVID相關的因素阻礙了對網絡進行廣泛投資的能力，運營商正在著力解決容量瓶頸。

We believe operators will begin additional investments to reestablish normal network headroom and expand offerings.

我們相信運營商將開始額外投資以重建正常的網絡淨空並擴展產品。

Large carrier and enterprise capital projects are inevitable.

大型運營商和企業資本項目在所難免。

But as we've said before, it's always hard to predict the timing.

但正如我們之前所說，總是很難預測時間。

Environmental Technology sales in the third quarter were $379 million, up 68% sequentially as markets recovered and OEMs continued to adopt GPS in Europe and China.

第三季度環境技術銷售額為 3.79 億美元，環比增長 68%，原因是市場復甦以及 OEM 繼續在歐洲和中國採用 GPS。

We effectively adjusted our operations to pace with the market recovery and delivered net income of $69 million, compared to breakeven in the second quarter.

與第二季度的收支平衡相比，我們有效地調整了運營以跟上市場復甦的步伐，並實現了 6900 萬美元的淨收入。

The business team did a great job over the last 6 months in reacting to the rapid shutdown and restart of auto production by controlling cost and maintaining flexibility.

在過去的 6 個月裡，業務團隊通過控製成本和保持靈活性，在應對汽車生產的快速停產和重啟方面做得很好。

Automotive sales increased 1% year-over-year as continued strong adoption of GPS helped us exceed vehicle production, which declined 6% year-over-year.

汽車銷量同比增長 1%，因為 GPS 的持續強勁採用幫助我們超過了汽車產量，後者同比下降了 6%。

In the quarter, we saw continued strong market performance in China, up slightly year-over-year.

本季度，我們看到中國市場表現持續強勁，同比略有增長。

North America and European OEMs more than doubled production sequentially, but declined 5% on a year-over-year basis.

北美和歐洲原始設備製造商的產量環比翻了一番以上，但同比下降了 5%。

Diesel sales improved 49% from the second quarter, but were still down 15% year-over-year.

柴油銷量較第二季度增長 49%，但仍同比下降 15%。

The North American heavy-duty truck market improved, but remains in a cyclical downturn with vehicle production down 46% year-over-year.

北美重型卡車市場有所改善，但仍處於週期性低迷狀態，汽車產量同比下降 46%。

Third quarter sales of heavy-duty vehicles in China, however, continue to exceed 2019 levels and adoption of advanced content increased in preparation for China 6 regulations.

然而，第三季度中國重型汽車的銷量繼續超過 2019 年的水平，並且為準備國 6 法規而採用的先進內容有所增加。

No doubt, this has been a challenging year for our automotive market access platform.

毫無疑問，對於我們的汽車市場准入平台來說，今年是充滿挑戰的一年。

However, we are recovering faster than the market due to increasing content, primarily GPS and advanced heavy-duty products.

然而，由於內容的增加，主要是 GPS 和先進的重型產品，我們的恢復速度快於市場。

Our content-driven strategy continues to drive strong results.

我們以內容為導向的戰略繼續推動強勁的業績。

Specialty Materials sales were $570 million in the third quarter, up 23% year-over-year and in sharp contrast to the smartphone market, which declined.

第三季度特種材料銷售額為 5.7 億美元，同比增長 23%，與智能手機市場的下滑形成鮮明對比。

Net income grew 59% year-over-year to $146 million.

淨收入同比增長 59% 至 1.46 億美元。

Sales growth was driven by Ceramic Shield, our new-to-the-world glass ceramic on the iPhone 12 as well as premium glass sales, IT and tablet glass sales in support of work from home trends and strength in our advanced optic products.

銷售增長是由 Ceramic Shield 推動的，Ceramic Shield 是我們在 iPhone 12 上推出的全新玻璃陶瓷，以及優質玻璃銷售、IT 和平板電腦玻璃銷售，以支持在家工作的趨勢和我們先進光學產品的實力。

In brief, strong adoption and commercialization of our innovations produced strong year-over-year results for the third quarter for Specialty Materials, and we expect that to be true for full year 2020 as well.

簡而言之，我們創新的大力採用和商業化為特種材料第三季度帶來了強勁的同比業績，我們預計 2020 年全年也是如此。

In Life Sciences, North America lab utilization is increasing, and the pandemic is driving demand for laboratory diagnostic testing consumables.

在生命科學領域，北美實驗室的利用率正在增加，大流行正在推動對實驗室診斷測試耗材的需求。

As a result, we are seeing increased demand for our products.

因此，我們看到對我們產品的需求增加。

In July, we carried out our long-term plan to ramp a new, larger distribution center needed to support our growth and enhance our ability to address our customers' increased needs around the world.

7 月，我們實施了長期計劃，建立一個新的、更大的配送中心，以支持我們的發展並增強我們滿足全球客戶日益增長的需求的能力。

Starting up this center in the middle of a pandemic proved to be more difficult than we expected, which constrained third quarter sales.

事實證明，在大流行期間啟動該中心比我們預期的要困難，這限制了第三季度的銷售。

Sales declined 8% sequentially.

銷售額環比下降 8%。

Net income declined 10%, in line with the lower volume.

淨收入下降 10%，與銷量下降一致。

We have added resources where required, implemented recovery plans and are confident that operations will support the required output in Q4.

我們在需要時增加了資源，實施了恢復計劃，並且有信心運營將支持第四季度所需的產出。

As a result, we expect strong sequential Life Science growth in the fourth quarter.

因此，我們預計第四季度生命科學業務將實現強勁的連續增長。

Now I'll turn to our balance sheet and our dedication to financial stewardship.

現在我將談談我們的資產負債表和我們對財務管理的投入。

As I mentioned at the outset of the pandemic, we committed to preserving our financial strength and positioning the company to emerge even stronger.

正如我在大流行開始時提到的那樣，我們致力於保持我們的財務實力並使公司定位為變得更加強大。

I've discussed the operational improvements we've implemented and our strong free cash flow generation.

我已經討論了我們實施的運營改進以及我們強大的自由現金流生成。

It is also important to note that we continue to maintain a conservative balance sheet with a strong cash position that ended the quarter at $2.5 billion.

同樣重要的是要注意，我們繼續保持保守的資產負債表和強勁的現金頭寸，該季度結束時現金頭寸為 25 億美元。

And we have a debt structure that is conservative by design and relatively unique.

我們的債務結構在設計上是保守的，而且相對獨特。

Today, our average debt maturity is about 25 years, the longest in the S&P 500.

今天，我們的平均債務期限約為 25 年，是標準普爾 500 指數中最長的。

Over the next 15 months, we have under $70 million coming due.

在接下來的 15 個月裡，我們有不到 7000 萬美元到期。

Less than half of our total debt is due within the next 20 years.

我們的總債務中不到一半將在未來 20 年內到期。

And during this time, there is no single year with debt repayment over $500 million.

而在此期間，沒有任何一年的債務償還超過 5 億美元。

Our balance sheet is built for times like these.

我們的資產負債表是為這樣的時代而建立的。

As I've previously mentioned, we expect to generate positive free cash flow in the fourth quarter and for the year.

正如我之前提到的，我們預計第四季度和全年將產生正的自由現金流。

We also expect to maintain a strong cash position and to maintain our dividend.

我們還希望保持強勁的現金狀況並維持我們的股息。

We have the financial resources needed for the duration of the economic slowdown.

我們擁有經濟放緩期間所需的財政資源。

In closing, we demonstrated outstanding operational performance in the quarter with significant sequential improvement in sales, net income, EPS and free cash flow.

最後，我們在本季度展示了出色的運營業績，銷售額、淨收入、每股收益和自由現金流均有顯著改善。

We are successfully carrying out the operational and financial goals we set up to stay strong during the crisis.

我們正在成功地實現我們為在危機期間保持強勁而設定的運營和財務目標。

We expect another solid quarter to end the year.

我們預計年底將有另一個穩定的季度。

We remain aware of potential impacts from the pandemic, the global recession, civil unrest and geopolitical tensions.

我們仍然意識到大流行病、全球經濟衰退、內亂和地緣政治緊張局勢的潛在影響。

Regardless of how long or what shape the recovery takes, Corning is effectively safeguarding its financial strength, our growth drivers are intact and we continue advancing important growth initiatives with leaders in industries we serve.

無論復甦需要多長時間或採取何種形式，康寧都在有效地維護其財務實力，我們的增長動力完好無損，我們將繼續與我們所服務行業的領導者一起推進重要的增長計劃。

We are confident that our execution and market leadership positions us to emerge from the current global uncertainty even stronger.

我們相信，我們的執行力和市場領導地位使我們能夠更強大地擺脫當前的全球不確定性。

With that, let's move to Q&A.

有了這個，讓我們轉向問答。

Ann?

安？

Thanks, Tony.

謝謝，托尼。

Okay, Catherine.

好的，凱瑟琳。

We're ready for our first question.

我們準備好了我們的第一個問題。

(Operator Instructions) Our first question comes from Asiya Merchant with Citigroup.

（操作員說明）我們的第一個問題來自花旗集團的 Asiya Merchant。

Great.

偉大的。

Wendell, Tony, given the consumer spending has been very strong year-to-date.

溫德爾，托尼，鑑於今年迄今為止的消費者支出非常強勁。

Obviously, we've seen that in some of the results of our companies.

顯然，我們已經在我們公司的一些業績中看到了這一點。

How do you guys kind of look into the next couple of quarters?

你們如何看待接下來的幾個季度？

Do you feel like visibility is good based on discussions with customers that consumer spending could continue at these levels?

根據與客戶的討論，消費者支出可能會繼續保持在這些水平，您是否認為可見性很好？

As it relates to smartphones, TVs, notebooks, et cetera, that use up all your products?

與智能手機、電視、筆記本電腦等相關，會耗盡您的所有產品嗎？

And then simultaneously, on the Optical side, clearly starting to see some positive trends here.

同時，在光學方面，顯然開始看到一些積極的趨勢。

I know it's lumpy.

我知道它是塊狀的。

But just as you look at the next couple of quarters, do you feel like you have good visibility at this point into how these quarters unfold and demand trend continues in the next couple of quarters?

但是，正如您觀察接下來的幾個季度一樣，您是否覺得此時您對這些季度如何展開以及未來幾個季度的需求趨勢將繼續保持良好的了解？

Asiya, I think that's an excellent question, and I don't disagree with any of your observations on some of the macro data on both consumer and statements from network operators.

Asiya，我認為這是一個很好的問題，我不同意你對消費者和網絡運營商聲明的一些宏觀數據的任何看法。

That being said, we expect a really solid quarter 4. And we're just -- and we're off to a really good start this month.

話雖這麼說，我們預計第 4 季度會非常穩健。而且我們只是 - 我們本月開局非常好。

But that's really the extent of the guidance that we want to give at this time.

但這確實是我們此時想要提供的指導範圍。

Like last quarter, our business segments, as you just highlighted, continue to flash green.

與上個季度一樣，正如您剛才強調的那樣，我們的業務部門繼續呈綠色閃爍。

The global uncertainties just remind us to be very humble in our ability to precisely predict the future and exactly how our customers are going to work their way through this uncertainty.

全球不確定性只是提醒我們在準確預測未來以及我們的客戶將如何度過這種不確定性的能力方面要非常謙虛。

On the opto side, I totally get where you're coming from.

在光學方面，我完全明白你來自哪裡。

Because we've all heard from our customers or from the network operators that they're experiencing very strong demand on their network.

因為我們都從我們的客戶或網絡運營商那裡聽說，他們對網絡的需求非常強勁。

I mean, there's some great examples.

我的意思是，有一些很好的例子。

I mean, they publish this all the time.

我的意思是，他們一直在發布這個。

It's a great website, by the way.

順便說一句，這是一個很棒的網站。

The Internet & Television Association reports upstream growth.

互聯網與電視協會報告了上游增長。

So growth from your home, up back into the network, that's up 37%.

因此，從您的家庭，回到網絡，增長了 37%。

And also just recently seen the Microsoft Teams set a new single day record of 4.1 billion minutes.

並且最近還看到 Microsoft Teams 創下了 41 億分鐘的單日新紀錄。

Unbelievable, right?

難以置信，對吧？

And you also hear really strong statements from them that they want to build more capacity to be able to deal with this new baseline of demand that's on.

你還會聽到他們非常強烈的聲明，他們希望建立更多的能力來應對這種新的需求基線。

And whether it's AT&T and Verizon or cable TV, companies or the public cloud players, they're all quite public that they're planning increases in their capacity.

無論是 AT&T 和 Verizon 還是有線電視、公司或公共雲播放器，他們都非常公開地表示他們正在計劃增加容量。

That being said, predicting the exact quarter when these plans turn into deployment at scale, that's just challenging.

話雖這麼說，預測這些計劃大規模部署的確切季度，這只是具有挑戰性。

Just so once again, I just think we should be very humble in predicting that exact quarter and wait until we see that surge in shipments out of our factories to claim a rebound in the Optical segment.

再一次，我只是認為我們在預測那個確切的季度時應該非常謙虛，等到我們看到我們工廠的出貨量激增以宣佈光學領域的反彈。

Great.

偉大的。

And if I may, for Tony.

如果可以的話，為了托尼。

As a follow-up, Tony, given you guys are kind of managing your CapEx and inventory levels with -- very prudently, should we expect the CapEx trend that we have been seeing over the last few quarters to sort of continue here?

作為後續行動，托尼，鑑於你們正在管理你們的資本支出和庫存水平——非常謹慎，我們是否應該期望我們在過去幾個季度看到的資本支出趨勢在這裡繼續？

Are we expecting any upsurge in CapEx at least over the next couple of quarters?

我們是否預計至少在接下來的幾個季度資本支出會飆升？

Yes.

是的。

I think -- I'll say, as we've talked about before, we have an ongoing amount of capital spending that we expand -- that we spend on kind of expanding our product lines and creating new innovations.

我想——我會說，正如我們之前談到的，我們有持續不斷的資本支出，我們正在擴大——我們花在擴大我們的產品線和創造新的創新上。

But where we really spend a lot of money is when we get into the build cycle, and we're not currently in one of those build cycles, and we don't see ourselves in a build cycle over the next year or so.

但是我們真正花很多錢的地方是當我們進入構建週期時，我們目前不在其中一個構建週期中，而且我們不會在明年左右看到自己處於構建週期中。

Of course, we want to eventually get to a build cycle because when we get to a build cycle, that means there's a lot of growth coming, and we always get that with some commitments from customers, and we actually saw the benefit of that in the third quarter with our work with Apple.

當然，我們希望最終進入一個構建週期，因為當我們進入一個構建週期時，這意味著會有很多增長，我們總是通過客戶的一些承諾來實現這一點，我們實際上看到了它的好處第三季度我們與 Apple 的合作。

But as we look out over the next several quarters, no, we don't -- we won't be in a build cycle, so we won't see a lot of change from a CapEx standpoint.

但是當我們展望接下來的幾個季度時，不，我們不會——我們不會進入構建週期，所以從資本支出的角度來看，我們不會看到太多變化。

Our next question comes from Steven Fox with Fox Advisors.

我們的下一個問題來自 Fox Advisors 的 Steven Fox。

Just following up on the Optical question.

只是跟進光學問題。

Maybe this is wrong, but my perception is that there wasn't a lot of content growth in the revenues based on what your customers are spending on right now.

也許這是錯誤的，但我的看法是，根據您的客戶目前的支出，收入中的內容增長並不多。

Wendell, can you just sort of talk about the outlook for content growth in Optical as you eventually, at whatever point it is, see an Optical spending surge?

溫德爾，你能不能談談光學內容增長的前景，因為你最終會看到光學支出激增？

Once again, really good observation, Steve.

再一次，非常好的觀察，史蒂夫。

Most of our operators have been dealing with this year is how do they eliminate some of the bottlenecks in their network in these challenging times.

我們大多數運營商今年一直在處理的問題是，在這些充滿挑戰的時代，他們如何消除網絡中的一些瓶頸。

But while they're being, as you say, quite public on that they're planning to expand their networks.

但是，正如您所說，儘管他們公開表示他們正計劃擴展他們的網絡。

So I think the content play is coming, and I believe that it will be quite strong, quite strong, whether it's in cloud, because there's been such a huge shift in the cloud during this time, or whether it's in our carriers.

所以我認為內容播放即將到來，我相信它會非常強大，無論是在雲中，還是在我們的運營商中，因為這段時間雲發生瞭如此巨大的轉變。

Our networks are just strained, and operators don't want to be in a spot where they're running close to red line and they need to establish that base that is higher.

我們的網絡很緊張，運營商不想在接近紅線的地方運行，他們需要建立更高的基礎。

So I feel really good that it's inevitable, right?

所以我感覺很好，這是不可避免的，對吧？

But that being said, I call them the quarter, buddy.

但話雖這麼說，我稱他們為四分之一，伙計。

No, I wasn't asking you to, but just to be clear, in the capacity expansion ramp is what would start sort of your content growth coming back.

不，我不是要你這樣做，只是要明確一點，在容量擴張的斜坡上，你的內容增長將開始回歸。

Is that correct?

那是對的嗎？

Or am I thinking about it wrong?

還是我想錯了？

Yes.

是的。

I think that is correct.

我認為這是正確的。

That's when you really see it.

那是你真正看到它的時候。

You're asking actually a super subtle question, which is we have a sort of more Corning play that's going on here as capacity comes in place more Optical.

你問的實際上是一個非常微妙的問題，這是我們有一種更多的康寧遊戲正在這裡進行，因為更多的光學容量已經到位。

And then we have particular set of innovations that reduce the cost of deployment pretty significantly and the efficacy of it, and those have a higher revenue content for us.

然後我們有一組特定的創新，可以顯著降低部署成本和效率，並且這些創新對我們來說具有更高的收入內容。

So in that subtle question that you're asking, we'll begin to see that without an acceleration in capacity growth.

因此，在您提出的那個微妙問題中，我們將開始看到這一點，而不會加速容量增長。

But you're not really going to feel it, we're not all going to feel great about it until that -- those technologies get deployed in new capacity expansions.

但你不會真正感受到它，直到那之前我們都不會對此感覺很好——這些技術被部署在新的容量擴展中。

And our next question comes from Samik Chatterjee with JPMorgan.

我們的下一個問題來自摩根大通的 Samik Chatterjee。

Great.

偉大的。

If I can just have a quick clarification.

如果我能快速澄清一下。

First, right up to your comment, Wendell, about light flashing green.

首先，就您的評論而言，Wendell，關於燈光閃爍的綠色。

I just want to make sure I'm reading it right that you're implying all segments are here in a positive backdrop, where they can improve sequentially from 3Q to 4Q, including Life Sciences, for which you're saying 3Q is that trough.

我只是想確保我沒看錯，你是在暗示所有細分市場都在積極的背景下，它們可以從第三季度到第四季度依次改善，包括生命科學，你說第三季度是低谷.

And then in terms of just drilling down a bit on the Specialty outperformance that you're seeing, how much of this is driven by content increase versus wider adoption of the cover glass?

然後就深入了解您所看到的特殊性能表現而言，其中有多少是由內容增加驅動的，而不是覆蓋玻璃的更廣泛採用？

And if you can drill down a bit on the different areas on a smartphone you're gaining content?

如果您可以深入了解智能手機的不同區域，您是否正在獲取內容？

Samik, could you -- as a favor to me, could you repeat the second part of that question?

Samik，作為對我的幫助，你能重複一下那個問題的第二部分嗎？

I'm not sure that I understand it exactly.

我不確定我是否完全理解它。

Could you do that again for me?

你能幫我再做一次嗎？

Yes.

是的。

The question was about Specialty outperformance that you're seeing in Specialty Materials?

問題是關於您在特種材料中看到的特種性能優異？

And how much of the outperformance relative to the underlying smartphone market is content increase versus wider adoption of your cover glass?

與基礎智能手機市場相比，內容增加與覆蓋玻璃的廣泛採用有多少？

And which are the areas on a smartphone you're gaining content, if you can just outline that?

您正在獲取內容的智能手機的哪些區域，如果您可以概述一下？

Okay.

好的。

So let me start with your second question first.

那麼讓我先從你的第二個問題開始。

So the bulk of that growth that you see is content increase.

所以你看到的大部分增長是內容的增加。

It's basically of beating players adopting our latest innovations that is driving that revenue increase.

這基本上是擊敗採用我們最新創新的玩家，這推動了收入的增長。

So that is the primary driver, Samik.

這就是主要驅動力，Samik。

To your first question, just to be precise on what I mean by flashing green.

對於您的第一個問題，請準確說明我所說的閃爍綠色的意思。

I said the same thing last quarter.

我上個季度也說過同樣的話。

And what I'm trying to get at here is not that we're going to have sequential growth, not that this one particular business is going to continue to do in a certain thing.

我在這裡想表達的並不是我們將實現連續增長，也不是說這個特定的業務將繼續做某件事。

What I'm trying to get at is sort of the dissonance that we feel between the demand that our customers are putting on us and versus sort of the uncertainty we see in around the world.

我想表達的是我們在客戶對我們提出的要求與我們在世界各地看到的不確定性之間感受到的某種不協調。

And so what I'm trying to do is give you the insight that we see, which is our businesses are doing well.

所以我想做的是給你我們所看到的洞察力，那就是我們的業務做得很好。

We've got a good order book, and we're operating well.

我們有一份很好的訂單，而且我們運作良好。

That being said, we still exist in the world that we exist in and we just got to be humble about giving exact guidance.

話雖這麼說，我們仍然存在於我們存在的世界中，我們只需要謙虛地提供準確的指導。

Does that make sense to you, Samik?

這對你有意義嗎，Samik？

Yes.

是的。

No.

不。

Fair.

公平的。

Sounds fair given the current environment.

考慮到當前的環境，這聽起來很公平。

Our next question comes from Rod Hall with Goldman Sachs.

我們的下一個問題來自高盛的 Rod Hall。

I wanted to start off with Ceramic Shield and just -- well, first of all, congratulations on being named on Apple's stage.

我想從 Ceramic Shield 開始，然後——好吧，首先，祝賀你在 Apple 的舞台上被提名。

I think that was a first.

我認為那是第一次。

So congrats on that.

所以恭喜你。

I wanted to, Wendell, just ask you whether that's an exclusive deal.

溫德爾，我想問問你這是不是獨家交易。

And if it is exclusive, does that -- is there a duration on that?

如果它是排他性的，是否有期限？

Are there other OEMs you could sell it to eventually?

您最終可以將其出售給其他原始設備製造商嗎？

Just kind of how are you thinking about exclusivity versus not on materials like that?

您如何看待排他性與不考慮此類材料？

And also maybe -- I doubt you'll tell me, but I'd be interested in the pricing differential with Gorilla.

也許——我懷疑你會告訴我，但我會對與大猩猩的定價差異感興趣。

And then I have a second question for Tony.

然後我有第二個問題要問托尼。

I noticed the inventory days jumped up a little bit in Q3, Tony.

托尼，我注意到第三季度的庫存天數有所增加。

Could you give us some maybe color on what drove that increase?

你能給我們一些關於推動這種增長的可能的顏色嗎？

Is it related to the smartphone cycle or something else?

它與智能手機週期有關還是其他什麼？

Tony, start with...

托尼，開始...

Yes.

是的。

Why don't I start with the inventory one?

為什麼我不從清單開始呢？

It's a pretty easy answer.

這是一個很簡單的答案。

During the quarter, we did the Hemlock transaction, and we had to consolidate their balance sheet, which is -- increased the inventory for Corning, in total.

在本季度，我們進行了 Hemlock 交易，我們不得不整合他們的資產負債表，即——總共增加了康寧的庫存。

But of course, that just comes from that transaction itself.

但是，當然，這只是來自該交易本身。

It's a great transaction.

這是一筆很棒的交易。

We're really excited about Hemlock.

我們對 Hemlock 感到非常興奮。

It generates a lot of cash.

它產生大量現金。

It pays -- we didn't put any money in.

它是值得的——我們沒有投入任何資金。

It pays back the debt.

它償還債務。

Even within -- most of it within a year, we have $150 million of ongoing free cash flow generation.

即使在 - 大部分時間在一年內，我們也有 1.5 億美元的持續自由現金流產生。

So what we'll make sure is clear, and we can talk about it in our call later today, that how much of the inventory came from that versus our own build.

所以我們要確定的是清楚的，我們可以在今天晚些時候的電話中討論，有多少庫存來自我們自己的構建。

If you look at the cash flow statement, we actually lowered our inventory about $187 million during the quarter.

如果您查看現金流量表，我們實際上在本季度將庫存減少了約 1.87 億美元。

So our inventories actually came down during the quarter, but it's because of the Hemlock consolidation that you see a little bit different on the balance sheet.

因此，我們的庫存實際上在本季度有所下降，但這是由於 Hemlock 整合，您在資產負債表上看到的略有不同。

And Rob, to your question -- questions for me.

羅布，對於你的問題——我的問題。

First, your statement.

首先，你的陳述。

Thank you for the congratulations.

謝謝你的祝賀。

We're really proud of that for Ceramic Shield, and it's a lot of work.

我們為 Ceramic Shield 的這一點感到非常自豪，這是一項艱鉅的工作。

I have to tell you that it feels, but not quite right to use, Apple's name out loud.

我必須告訴你，大聲說出 Apple 的名字感覺，但不太正確。

I don't think I've ever done that.

我不認為我曾經這樣做過。

Like any size of the company, we have a code name for Apple.

與任何規模的公司一樣，我們有一個 Apple 代號。

And like we never even say Apple inside the company.

就像我們在公司內部從來不說蘋果一樣。

So like if you could see me, I sound like turning a little pink, and I'm having an anxiety attack, so that means speak your name out loud.

所以就像如果你能看到我，我聽起來有點粉紅色，我正在焦慮發作，所以這意味著大聲說出你的名字。

So if I stumble a little, please be forgiving.

所以如果我有一點失誤，請原諒。

So...

所以...

I was nervous asking it with Apple's name in the question, too.

我也很緊張地在問題中用 Apple 的名字問它。

That's exactly right.

這是完全正確的。

We totally get it.

我們完全明白了。

So Ceramic Shield, that's Apple's.

所以 Ceramic Shield，那是 Apple 的。

Just that simple.

就這麼簡單。

That's Apple's.

那是蘋果的。

They helped us develop it.

他們幫助我們開發它。

They invested in U.S. manufacturing for it.

他們為此投資了美國製造業。

That's theirs.

那是他們的。

And it should be theirs.

它應該是他們的。

And so that's the way that is.

就是這樣。

Now as we take a look at other players, we got a whole stream of innovations for them as well.

現在，當我們看看其他玩家時，我們也為他們提供了一整套創新。

I think what we're -- what we would love to see, our ideal scenario would be that Apple has so raised -- I can't believe I just said Apple again, has so raised the bar on performance for everybody that all of the players will be coming to us to say, we need to have a way to compete with this incredible performance.

我認為我們是——我們希望看到的，我們的理想情況是蘋果已經提高了——我不敢相信我剛剛又說了蘋果，已經為每個人提高了性能標準，以至於所有球員們會來找我們說，我們需要有辦法與這種令人難以置信的表現競爭。

And if that happens, that's just going to all be good for us.

如果發生這種情況，那對我們來說都是好事。

We will not do Ceramic Shield for them.

我們不會為他們做Ceramic Shield。

But we've got a lot of great ideas and we've got a lot of great products to help them raise their game to the new level that was just set.

但是我們有很多很棒的想法，我們有很多很棒的產品可以幫助他們將游戲提升到剛剛設定的新水平。

I've got to revert in Cupertino.

我必須在庫比蒂諾恢復。

So the next one got to how much that you didn't think I would answer was what's the price delta.

所以下一個問題是你認為我不會回答的是多少價格增量。

I would say, once again, Rod, you have effectively predicted the future.

我要再說一次，Rod，你已經有效地預測了未來。

I am not going to answer that.

我不會回答這個問題。

All right.

好的。

Why wasn't it used on the back of a phone?

為什麼它沒有用在手機背面？

Just too expensive?

只是太貴了？

You have exhausted my ability to get myself to answer any question about that particular company.

你已經用盡了我的能力讓自己回答關於那家特定公司的任何問題。

I just -- I'm reverting back to my mode.

我只是——我正在恢復我的模式。

And just very soon, I'm going to go back into using code words.

很快，我將重新使用暗語。

So...

所以...

Our next question comes from Wamsi Mohan with Bank of America.

我們的下一個問題來自美國銀行的 Wamsi Mohan。

Yes.

是的。

Just to stay on this Specialty for a second.

只是停留在這個專業上一秒鐘。

On the content increase that you referred to, Wendell, can you talk about whether you meant dollar content or unit content or both?

關於你提到的內容增加，溫德爾，你能談談你是指美元內容還是單位內容或兩者兼而有之？

And if both, like what the relative split is?

如果兩者都有，那麼相對分裂是多少？

And just sort of a little bit technical side of this.

這只是有點技術方面的問題。

In the -- is the process similar to Gorilla where there is post-processing done by finishers or something different that changes the margin structure of this product?

在 - 這個過程是否類似於大猩猩，其中有由修整者完成的後處理或改變該產品的利潤結構的不同東西？

And I have a follow-up on Display.

我對 Display 進行了跟進。

So starting with smartphones, I think the right way to think about it is its content in dollars, right?

所以從智能手機開始，我認為正確的思考方式是它以美元計算的內容，對吧？

It's just we're introducing more valuable materials, right?

只是我們正在引入更有價值的材料，對吧？

Now quite often, with some of them like Victus is a great example, is it is a more valuable material that we're introducing, but it also reduces finishing cost for our customers.

現在很多時候，其中一些像 Victus 就是一個很好的例子，它是我們引入的更有價值的材料，但它也降低了我們客戶的整理成本。

And so as a result, their part cost can be really close to what they had for Gorilla Glass 6. So that's sort of the shape of the way.

因此，他們的零件成本可能非常接近第六代大猩猩玻璃的成本。這就是某種方式。

But you should think about it as it's brand-new products that have a higher price point is the primary way to think about it from your modeling perspective.

但是您應該考慮一下，因為它是具有更高價位的全新產品，這是從建模角度考慮它的主要方式。

That's smartphones.

那就是智能手機。

I think you've also got this going on in laptops in the IT piece is we're also bringing up more content.

我認為您在 IT 部分的筆記本電腦中也遇到了這種情況，我們也在提供更多內容。

Once again, the right way to think about this is more value added in our product set rather than increasing a mass of glass or ceramics on the products right now.

再一次，正確的思考方式是在我們的產品系列中增加更多的價值，而不是現在在產品上增加大量的玻璃或陶瓷。

But super interesting question to when you think about 5G, where you've seen smartphones evolve to, which is this all-glass structure, pretty much, is driven by, yes, we make lots of product in like glass is the best thing.

但是當你想到 5G 時，你會看到一個非常有趣的問題，你已經看到智能手機發展到這種全玻璃結構，幾乎是由，是的，我們製造了很多產品，比如玻璃是最好的東西。

I mean, but other than that, is that they need the RF transparency.

我的意思是，除此之外，他們需要 RF 透明性。

And if you pop open a 5G phone, any of them, you will see how much antenna content is in there to be able to handle 5G and an ability to do 4G and to be able to do different players depending on where you are in the world.

如果你打開一部 5G 手機，你會看到其中有多少天線內容能夠處理 5G 和 4G 的能力，並且能夠根據你所在的位置播放不同的播放器世界。

This same thing, I believe, is going to come to the IT products.

我相信，同樣的事情也會出現在 IT 產品中。

If there are going to be big 5G users, we're going to have to see more mass of our product or volume of our product on those devices to make them be truly great 5G devices.

如果要有大 5G 用戶，我們將不得不在這些設備上看到更多我們的產品或我們的產品數量，使它們成為真正偉大的 5G 設備。

That answer your question, Wamsi?

這回答了你的問題，Wamsi？

Yes.

是的。

Yes, it does, Wendell.

是的，是的，溫德爾。

And if I could follow up, can you talk about the incremental strength in Display?

如果我可以跟進，你能談談 Display 的增量優勢嗎？

There's some concern in the market that there were some ramp issues in the China glass market that's causing one of your competitors to take some share.

市場上存在一些擔憂，即中國玻璃市場存在一些增長問題，導致您的一個競爭對手搶占了一些份額。

Can you comment on that?

你能對此發表評論嗎？

And maybe just talk about any changes in the pace of the Korea ramp down?

也許只是談談韓國減速步伐的任何變化？

So I think from an overall standpoint, what's really driving the strength in display is what's happening in the end markets, and that's what always matters from a display standpoint.

所以我認為，從整體的角度來看，真正推動展示實力的是終端市場正在發生的事情，從展示的角度來看，這始終很重要。

And as we talked about, clearly, TV demand in the COVID world has been pretty strong, but so has IT demand.

正如我們所說，很明顯，COVID 世界中的電視需求非常強勁，但 IT 需求也是如此。

In particular, notebooks and tablets.

特別是筆記本電腦和平板電腦。

And that's fundamentally what we're seeing there.

這就是我們在那裡看到的根本。

And you see it in terms of -- in a couple of ways.

你可以從幾個方面來看待它。

One is panel maker utilizations have been high.

一是面板製造商的利用率一直很高。

And I think that has slowed down a bit of the exit of -- from Korea by some of the panel makers there.

而且我認為這已經減緩了一些面板製造商從韓國退出的速度。

But in addition to that, the value chain is pretty tight right now.

但除此之外，目前價值鏈非常緊張。

So what is really driving this is in customer demand.

因此，真正推動這一趨勢的是客戶需求。

And from a retail standpoint, as we mentioned, as measured in glass, it's up mid-single digits on a year-over-year basis, and that feels good.

從零售的角度來看，正如我們提到的，以玻璃衡量，它同比增長了中等個位數，這感覺很好。

Our next question comes from Peter Zdebski with Barclays.

我們的下一個問題來自巴克萊銀行的 Peter Zdebski。

This is Peter on for Tim Long.

這是蒂姆朗的彼得。

Congratulations on the quarter.

祝賀這個季度。

I wanted to ask about GPS.

我想問一下GPS。

Prior to the pandemic, I think we were looking at a kind of target of about [$315 million] of sales in 2020.

在大流行之前，我認為我們正在考慮 2020 年銷售額約為 [3.15 億美元] 的目標。

And given that it looks like the Auto rebound has been probably a little stronger than expected, could you give us an idea of how close you might get to that number for '20?

鑑於看起來汽車業的反彈可能比預期的要強一些，您能否告訴我們您與 20 年的數字有多接近？

And then maybe your thoughts on timing toward that $500 million target?

然後，也許您對實現 5 億美元目標的時機有何看法？

Yes.

是的。

I think that fundamentally, what is driving the sales from a GPS standpoint, of course, is the adoption in Europe and the adoption in China.

我認為，從根本上說，從 GPS 的角度來看，推動銷售的當然是歐洲的採用和中國的採用。

And on a year-over-year basis, the European market is down.

與去年同期相比，歐洲市場下滑。

It rebounded a lot in Q3, but it's still down on a year-over-year basis, but China is actually up.

它在第三季度反彈了很多，但同比仍然下降，但中國實際上在上升。

So I mean, I think we feel good about where GPS sales are.

所以我的意思是，我認為我們對 GPS 銷售情況感到滿意。

We certainly feel good that we are outperforming the market because of the content-driven part of GPS.

由於 GPS 的內容驅動部分，我們確實跑贏了市場，這讓我們感到非常高興。

Our next question comes from Meta Marshall with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Meta Marshall。

Great.

偉大的。

A couple of questions.

幾個問題。

On Valor Glass, understanding the FDA has had a more their fast track policy over the last year on vaccines.

在 Valor Glass 上，了解 FDA 在過去一年中對疫苗制定了更多的快速通道政策。

But just post any vaccines, just progress you think Valor Glass is making within the FDA do not need a drug by drug approval?

但是只要發布任何疫苗，您認為 Valor Glass 在 FDA 內取得的進展就不需要通過藥物批准的藥物？

And then maybe second, if there were any kind of administration change to come in the next year, just how quickly could emission standard changes flow through the Environmental segment?

然後也許其次，如果明年要進行任何形式的行政變更，那麼排放標準的變更能以多快的速度通過環境部門？

Well, I'll take the first one, and maybe you can take the second.

好吧，我選第一個，也許你可以選第二個。

I'll comment on, if you'd like.

如果你願意，我會評論。

So Meta, I think in Valor, we're feeling the broader adoption as well as strategies by our customers to make the regulatory burden be less.

所以 Meta，我認為在 Valor 中，我們感受到了客戶更廣泛的採用和策略，以減輕監管負擔。

I think the way to think about the FDA is they'll react to the plans of our customers and that will end up providing a basis for how it will evolve in the treatment of Valor vials.

我認為考慮 FDA 的方式是他們會對我們客戶的計劃做出反應，這最終將為它如何在 Valor 小瓶的治療中發展提供基礎。

In general, what I would say is ease of qualification is getting better for us as our customers get more sophisticated in how to do the regulatory moves.

總的來說，我想說的是，隨著我們的客戶在如何採取監管措施方面變得更加成熟，對我們來說，資格認證的難度越來越大。

You just have to remember, this is the first change, really, in vial packaging in 100 years.

您只需要記住，這是 100 年來小瓶包裝的第一次真正變化。

So everybody was a little out of practice, right?

所以每個人都有點缺乏實踐，對吧？

So I think with that's coming in place and getting better.

所以我認為隨著它的到來並且變得更好。

Our real focus though in Valor right now is to support the COVID-19 vaccine efforts.

儘管我們目前在 Valor 的真正重點是支持 COVID-19 疫苗工作。

That's what we're about.

這就是我們的目的。

And we have focused most of our energy now on supporting various vaccine candidates.

我們現在將大部分精力集中在支持各種候選疫苗上。

And for them, it's a new drug.

對他們來說，這是一種新藥。

So the new drug is just qualified in our vial.

所以新藥剛好在我們的小瓶里合格。

So there's no real additional regulatory burden, right?

所以沒有真正的額外監管負擔，對吧？

It's the redo that provides an extra burden, not the original product that's superior in every way from the current product.

提供額外負擔的是重做，而不是在各方面都優於當前產品的原始產品。

So that's where we're really focusing our capacity efforts.

所以這就是我們真正關注我們的能力努力的地方。

That's where we're focusing our technology efforts is to use all of Corning's capabilities to make all of us and our children safer, and that's where we're aimed.

這就是我們專注於我們的技術努力的地方，即利用康寧的所有能力讓我們所有人和我們的孩子更安全，這就是我們的目標。

And Meta, I think in terms of the environmental regulations, the way we look at it isn't as -- at least from our business standpoint and when we will start generating sales.

而 Meta，我認為就環境法規而言，我們看待它的方式並不是——至少從我們的業務角度來看，以及我們何時開始產生銷售。

It's not as how quickly the regulations change, it's when the implementations happen.

重要的不是法規變化的速度，而是實施的時間。

And on environmental regulations, they always take several years to occur.

而在環境法規方面，它們總是需要幾年時間才能出現。

They've got to change the automotive supply chain and the like.

他們必須改變汽車供應鍊等。

So while the change in the regulations might be quick in terms of us actually seeing it in sales in North America, that would clearly be a couple of years after that.

因此，雖然就我們在北美的銷售中實際看到的而言，法規的變化可能很快，但顯然要在那之後幾年。

Our next question comes from Shannon Cross with Cross Research.

我們的下一個問題來自 Cross Research 的 Shannon Cross。

I wanted to add a question.

我想補充一個問題。

If we look back to April when you put in place the new operating structure, it was sort of centered around your maps in that.

如果我們回顧 4 月份你建立新的運營結構時，它有點以你的地圖為中心。

What kind of benefits have you seen from that?

您從中看到了哪些好處？

How is it working?

它是如何工作的？

Just given we're, I don't know, 5 months since it was launched.

只是考慮到我們，我不知道，它推出 5 個月了。

And then I have a follow-up.

然後我有一個後續行動。

So we basically -- because our innovations have been successful, we've sort of outgrown our previous structures.

所以我們基本上 - 因為我們的創新已經成功，我們已經超出了我們以前的結構。

And so we put in place this new operating structure with Eric Musser, who's our President and COO, and named new Market-Access Platform leaders, really next-generation leadership, to take each and every one of our major Market-Access Platforms.

因此，我們與我們的總裁兼首席運營官 Eric Musser 建立了這種新的運營結構，並任命了新的市場准入平台領導者，真正的下一代領導者，以接管我們的每一個主要市場准入平台。

And it's going great.

而且進展順利。

And my main evidence for that is look at the results.

我的主要證據是看結果。

I mean, it's really strong.

我的意思是，它真的很強大。

So I've got nothing but good things to say about that.

所以我對此只有好話要說。

And I -- and we are all quite hopeful going forward of this type of outstanding operations performance continues.

我——我們都非常希望繼續保持這種出色的運營業績。

Okay.

好的。

And then, I don't know, Tony, can you talk a bit about any operational improvements you could make to Hemlock now that it's wholly owned?

然後，我不知道，托尼，你能談談你現在可以對 Hemlock 進行全資擁有的任何運營改進嗎？

Just -- or is it -- or we should just assume it will be stand-alone and there's not much leverage to be had?

只是 - 或者是 - 或者我們應該假設它將是獨立的並且沒有太大的影響力？

No.

不。

I think there is plenty of operational improvements that we can make there.

我認為我們可以在那裡進行大量的運營改進。

We obviously based our -- as we thought about why we're excited about this is based on their current operating performance, those long-term take-or-pay contracts that come with upfront cash payments.

我們顯然是基於我們的——當我們考慮為什麼我們對此感到興奮時，是基於他們目前的經營業績，即那些帶有預付現金的長期照付不議合同。

The good controls that they have over their costs, both in terms of the assets that they bought from DuPont, but also some long-term energy contracts that are at very favorable rates.

他們對成本的良好控制，包括從杜邦購買的資產，以及一些價格非常優惠的長期能源合同。

And that's why we're confident in that ability to generate the $150 million of annual cash flow.

這就是為什麼我們對產生 1.5 億美元年度現金流的能力充滿信心。

That being said, we will start working on other kind of operational improvements we can make there.

話雖這麼說，我們將開始致力於我們可以在那裡進行的其他類型的運營改進。

And a good example of that is that we procure a lot more stuff as a company than they do.

一個很好的例子是，作為一家公司，我們採購的東西比他們多得多。

And so I'm sure there's opportunities there.

所以我確信那裡有機會。

I think there's opportunities from a technology standpoint, from a general manufacturing standpoint, market access standpoint, chances to look at different markets than they've had before.

我認為從技術的角度來看，從一般製造的角度，從市場准入的角度來看，有機會看到與以前不同的市場。

I mean, they will now get the whole power of the Corning machine to really drive that business.

我的意思是，他們現在將獲得康寧機器的全部力量來真正推動這項業務。

So I think on the whole, we would expect improvements over time.

所以我認為總的來說，我們希望隨著時間的推移有所改進。

Now how quickly they happen and the like all, we're just at the beginning stages of that.

現在它們發生的速度有多快等等，我們才剛剛開始。

And the fact it's going to have the $150 million a year of free cash flow generation is very exciting.

事實上，它將每年產生 1.5 億美元的自由現金流，這非常令人興奮。

Our last question comes from Martin Yang with Oppenheimer & Co.

我們的最後一個問題來自 Oppenheimer & Co. 的 Martin Yang。

And my question is about display glass prices.

我的問題是關於顯示器玻璃價格的。

Is there any opportunity for you to see price improvement even more?

您是否有機會看到價格進一步上漲？

I understand that the current structure protects your downside, but given the tight supply-demand right now, is there any way for you to raise price?

我知道目前的結構保護了你的下行空間，但鑑於目前供需緊張，你有什麼辦法提高價格嗎？

I would say that like you've often heard me say, Martin, about display.

我會像你經常聽到我說的那樣，馬丁，關於展示。

Is it the right way to think about it from an investment standpoint?

從投資的角度考慮是否正確？

In my opinion, I have some of my operating folks who believe we can make this be back into a growth machine.

在我看來，我的一些運營人員相信我們可以讓它重新成為增長機器。

But I continue to believe we should just count on it as aging gracefully, generating tons of cash flow and pricing being moderate, right, and that we just like normally in a maturing business, that rate of price decline declining.

但我仍然相信，我們應該指望它優雅地老去，產生大量的現金流和適度的定價，對的，我們就像通常在一個成熟的企業中一樣，價格下降的速度在下降。

And I think that's the way to think about it.

我認為這就是思考它的方式。

And right now, our primary focus is to make sure we bring up those Gen 10.5 plants that we have put in place.

而現在，我們的主要重點是確保我們啟動我們已經部署的 Gen 10.5 工廠。

And you can remember, that was -- when we did this, we did this with largely money support from various Chinese players, while we kept 100% of the profit stream.

你還記得，那是——當我們這樣做的時候，我們在很大程度上得到了中國玩家的資金支持，同時我們保留了 100% 的利潤流。

And that move, when we did it, was really a bet on the growth of large-sized TV and a bet on the Chinese LCD manufacturers.

而那一步，我們做的時候，真的是在押注大尺寸電視的發展，押注中國液晶廠商。

That bet is playing out really well.

這個賭注的結果非常好。

And the key for us is to grow that into its full capability as fast as we can.

對我們來說，關鍵是盡快將其發展為全部能力。

Thanks, Wendell.

謝謝，溫德爾。

Great, and thanks, everybody, for joining us today.

太好了，感謝大家今天加入我們。

Before we close, I wanted to let you know that we'll be at the Baird Virtual Global Industrial Conference on November 10; the Morgan Stanley Virtual Life After COVID Conference on November 11; Credit Suisse Annual Technology Conference on November 30; and the Barclays Global Technology Media and Telecoms Conference on December 10.

在我們結束之前，我想告訴您我們將於 11 月 10 日參加 Baird 虛擬全球工業大會； 11 月 11 日 COVID 會議後的摩根士丹利虛擬生活； 11 月 30 日瑞士信貸年度技術會議；以及 12 月 10 日的巴克萊全球技術媒體和電信會議。

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

最後，從今天上午晚些時候開始，我們的網站上將提供今天電話會議的重播。

Operator, that concludes our call.

接線員，結束我們的通話。

Please disconnect all lines.

請斷開所有線路。

Ladies and gentlemen, this concludes today's conference call.

女士們，先生們，今天的電話會議到此結束。

Thank you for participating.

感謝您的參與。

You may now disconnect.

您現在可以斷開連接。