純正零件 (GPC) 2023 Q1 法說會逐字稿

Good day, ladies and gentlemen. Welcome to the Genuine Parts Company First Quarter 2023 Earnings Conference Call. (Operator Instructions)

女士們先生們，美好的一天。歡迎來到 Genuine Parts Company 2023 年第一季度收益電話會議。 （操作員說明）

Please note, today's event is being recorded.

請注意，今天的活動正在錄製中。

At this time, I would like to turn the conference over to Sid Jones, Senior Vice President, Investor Relations. Please go ahead.

此時，我想將會議轉交給投資者關係高級副總裁 Sid Jones。請繼續。

Good morning, and thank you for joining us today for the Genuine Parts Company First Quarter 2023 Earnings Conference Call. With me today are Paul Donahue, our Chairman and Chief Executive Officer; Will Stengel, our President and Chief Operating Officer; and Bert Nappier, Executive Vice President and Chief Financial Officer.

早上好，感謝您今天加入我們，參加 Genuine Parts Company 2023 年第一季度收益電話會議。今天和我在一起的是我們的董事長兼首席執行官 Paul Donahue；我們的總裁兼首席運營官 Will Stengel； Bert Nappier，執行副總裁兼首席財務官。

In addition to this morning's press release, a supplemental slide presentation can be found on the Investors page of the Genuine Parts Company website. Note, we will not be playing these slides through the webcast. Please be advised this call may include certain non-GAAP financial measures, which may be referred to during today's discussion of our results as reported under generally accepted accounting principles.

除了今天上午的新聞稿外，還可以在 Genuine Parts Company 網站的投資者頁面上找到補充幻燈片演示。請注意，我們不會通過網絡廣播播放這些幻燈片。請注意，本次電話會議可能包括某些非 GAAP 財務措施，在今天討論我們根據公認會計原則報告的結果時可能會提到這些措施。

A reconciliation of these measures is provided in the earnings press release. Today's call may also involve forward-looking statements regarding the company and its businesses. The company's actual results could differ materially from any forward-looking statements due to several important factors described in the company's latest SEC filings, including this morning's press release. The company assumes no obligation to update any forward-looking statements made during this call.

收益新聞稿中提供了這些措施的對賬。今天的電話會議還可能涉及有關公司及其業務的前瞻性陳述。由於公司最新提交給 SEC 的文件（包括今天上午的新聞稿）中描述的幾個重要因素，公司的實際結果可能與任何前瞻性陳述存在重大差異。公司不承擔更新本次電話會議期間所做的任何前瞻性陳述的義務。

Now I'll turn the call over to Paul for his remarks.

現在，我將把電話轉給保羅，聽取他的意見。

Thank you, Sid, and good morning. Welcome to our first quarter 2023 earnings conference call. We were pleased with the continued strength and momentum in our businesses and to report results that exceeded our expectations for the quarter. Before I share my comments on the first quarter, I want to share a few thoughts from our 2023 Investor Day, which we hosted just this past month. We use this event to convey our confidence in the bright future of Genuine Parts Company and update everyone on our strategy and the many opportunities we see for long-term profitable growth.

謝謝你，希德，早上好。歡迎參加我們 2023 年第一季度的收益電話會議。我們對我們業務的持續實力和勢頭感到高興，並報告了超出我們對本季度預期的結果。在我分享我對第一季度的評論之前，我想分享我們在上個月舉辦的 2023 年投資者日的一些想法。我們利用這次活動來表達我們對 Genuine Parts Company 光明未來的信心，並向大家介紹我們的戰略以及我們看到的長期盈利增長的許多機會。

During the course of the day, we highlighted our rich history, ongoing transformation and strategic priorities, which we showcased through several key initiatives in an interactive expo. Our panel discussion with our global business unit leaders, allowed us to share specific business and market opportunities and provide insights to the collaboration among our leaders and synergies across the businesses.

在當天的過程中，我們強調了我們豐富的歷史、正在進行的轉型和戰略重點，我們通過互動博覽會的幾個關鍵舉措展示了這些。我們與全球業務部門負責人進行的小組討論讓我們能夠分享具體的業務和市場機會，並為我們的領導者之間的合作和跨業務的協同效應提供見解。

Finally, we provided 3-year financial targets, including a compelling outlook for double-digit EPS CAGR and a double-digit EBITDA and segment profit margin by 2025. It was a great day for the GPC leadership team and hopefully, an informative and productive day for all of our attendees and everyone in the financial community more broadly.

最後，我們提供了 3 年的財務目標，包括到 2025 年兩位數的 EPS CAGR 和兩位數的 EBITDA 和部門利潤率的令人信服的前景。這對 GPC 領導團隊來說是美好的一天，希望這是一個信息豐富且富有成效的日子為我們所有與會者和更廣泛的金融界的每個人舉辦的一天。

If you missed it, we invite you to view the full presentation on our Investor Relations website. So now let's turn to the first quarter. We are proud of the outstanding work by our global GPC teammates, with sales and earnings coming in ahead of our expectations. Our first quarter performance was a clear example of how our strategic transformation to a global automotive and industrial company, is a competitive advantage that distinguishes GPC in the marketplace.

如果您錯過了，我們邀請您在我們的投資者關係網站上查看完整的演示文稿。現在讓我們轉到第一季度。我們為全球 GPC 團隊成員的出色工作感到自豪，銷售額和收益超出了我們的預期。我們第一季度的業績清楚地說明了我們向全球汽車和工業公司的戰略轉型如何成為使 GPC 在市場上脫穎而出的競爭優勢。

We benefited from our business mix and the geographic diversity of our operations with continued strong performances in our international Automotive businesses and in the Industrial segment. A few highlights in the quarter include: record quarterly sales of $5.8 billion, up 9% from the prior year. Segment margin of 9.1%, up 50 basis points from 2022.

我們受益於我們的業務組合和業務的地域多樣性，我們的國際汽車業務和工業部門的表現持續強勁。本季度的一些亮點包括：創紀錄的季度銷售額 58 億美元，比去年同期增長 9%。部門利潤率為 9.1%，比 2022 年提高 50 個基點。

Earnings per share of $2.14, up 15% from adjusted EPS last year and our 11th consecutive quarter of double-digit adjusted earnings growth. And finally, we strengthened our balance sheet while generating solid cash flow to support our growth initiatives and capital allocation.

每股收益為 2.14 美元，比去年調整後的每股收益增長 15%，這是我們連續第 11 個季度實現兩位數的調整後收益增長。最後，我們加強了資產負債表，同時產生了可觀的現金流，以支持我們的增長計劃和資本配置。

The global GPC team is focused on driving accelerated sales and earnings growth, continued margin expansion and strong cash flow through dynamic economic conditions. Across our businesses, our teammates are aligned and executing on our strategic plan to deliver outstanding customer service and continued market share gains. In Industrial, demand trends held strong throughout the first quarter with new and existing customer activity and reshoring trends each presenting growth opportunities.

全球 GPC 團隊專注於通過動態經濟條件推動銷售和盈利的加速增長、持續的利潤擴張和強勁的現金流。在我們的業務中，我們的團隊成員一致並執行我們的戰略計劃，以提供出色的客戶服務和持續的市場份額增長。在工業領域，需求趨勢在整個第一季度保持強勁，新老客戶活動和回流趨勢都帶來了增長機會。

We believe our continued momentum in industrial is due to the diversity of our product and service offerings and end markets, which all performed well again this quarter. Our acquisition of KDG and enhanced capabilities in industrial solutions, including automation, fluid power and conveyance are proving to be competitive differentiators, and we remain bullish on this business in the near term. Our global automotive business continues to benefit from the geographic diversity of our markets, which helped to offset the headwinds of a warmer winter and volatile weather conditions in our U.S. Automotive business in Q1.

我們認為，我們在工業領域的持續發展勢頭是由於我們的產品和服務以及終端市場的多樣性，這些在本季度再次表現良好。我們對 KDG 的收購和在工業解決方案（包括自動化、流體動力和運輸）方面的增強能力被證明是競爭優勢，我們在短期內仍然看好該業務。我們的全球汽車業務繼續受益於我們市場的地域多樣性，這有助於抵消我們第一季度美國汽車業務因冬季暖和和多變的天氣條件帶來的不利影響。

In addition, the automotive aftermarket is benefiting from trends such as the ongoing increase in miles driven and aging and complex vehicle fleet and rising interest rates and continued high prices for new and used vehicles. These are all key drivers to ongoing growth in demand, especially for the DIFM segment, which represents 80% of our global automotive sales. So after delivering back-to-back record years, we are pleased with the solid start to 2023, and we continue to expect another strong year of profitable growth.

此外，汽車售後市場正受益於諸如行駛里程持續增加、老齡化和復雜車隊、利率上升以及新車和二手車價格持續走高等趨勢。這些都是推動需求持續增長的關鍵因素，尤其是占我們全球汽車銷售額 80% 的 DIFM 領域。因此，在連續創下紀錄之後，我們對 2023 年的良好開局感到滿意，我們繼續期待又一個強勁的盈利增長年。

Looking ahead, we are confident that GPC is well positioned with the right strategic plans, strong fundamentals, and rock-solid balance sheet to pursue accretive organic and acquisitive investment opportunities while also returning capital to shareholders through dividends and share repurchases. So again, we thank each of our GPC teammate for taking great care of our customers around the world. So now I'll turn the call over to Will.

展望未來，我們相信 GPC 憑藉正確的戰略計劃、強勁的基本面和堅如磐石的資產負債表處於有利地位，可以尋求增值的有機和收購投資機會，同時通過股息和股票回購向股東返還資本。因此，我們再次感謝我們的每一位 GPC 隊友，感謝他們對我們全球客戶的無微不至的關懷。所以現在我會把電話轉給威爾。

Thank you, Paul. Good morning, everyone. I'd also like to thank the global GPC team for the strong start to the year. We appreciate all your hard work to take care of our customers every day. As Paul referenced earlier, the pride in our business was on display at our Investor Day last month. We were excited to share our vision, unique advantages, market opportunities and how we're winning as we execute strategic initiatives. Our initiatives are focused on talent and culture, sales effectiveness, technology, supply chain and emerging technology, all complemented by a disciplined M&A strategy.

謝謝你，保羅。大家，早安。我還要感謝全球 GPC 團隊今年的強勁開局。我們感謝您每天為照顧我們的客戶所做的辛勤工作。正如保羅之前提到的，我們在上個月的投資者日展示了對我們業務的自豪感。我們很高興分享我們的願景、獨特優勢、市場機會以及我們在執行戰略計劃時如何取勝。我們的舉措側重於人才和文化、銷售效率、技術、供應鍊和新興技術，所有這些都輔以嚴格的併購戰略。

As we shared during the sessions, our team is well positioned with leadership positions in attractive, fragmented markets with established customer relationships, global supplier partnerships, technical expertise and a scaled global infrastructure. We work together with shared values as 1 GPC team to create customer success and shareholder value.

正如我們在會議期間分享的那樣，我們的團隊在有吸引力的、分散的市場中處於領先地位，擁有成熟的客戶關係、全球供應商合作夥伴關係、技術專長和規模化的全球基礎設施。作為一個 GPC 團隊，我們以共同的價值觀共同努力，以創造客戶成功和股東價值。

Turning our attention to the first quarter performance in our 2 business segments. Total sales for Global Industrial segment were $2.3 billion, an increase of approximately $240 million or 11.9%. Comparable sales growth increased approximately 12.1% in the first quarter versus last year.

將注意力轉向我們 2 個業務部門的第一季度業績。全球工業部門的總銷售額為 23 億美元，增長約 2.4 億美元或 11.9%。與去年同期相比，第一季度可比銷售額增長了約 12.1%。

This marks Motion's eighth consecutive quarter of double-digit comparable sales growth. From a cadence perspective, through the quarter, January and February were the strongest 2 months on a 1-year basis, but on a 2-year basis, sales were relatively consistent throughout the quarter. In March 2023, Motion eclipsed the previous monthly sales and profit record set in March of 2022.

這標誌著 Motion 連續第八個季度實現兩位數的可比銷售額增長。從節奏的角度來看，整個季度，1 月和 2 月是一年中表現最好的 2 個月，但在 2 年的基礎上，整個季度的銷售額相對穩定。 2023 年 3 月，Motion 打破了 2022 年 3 月創下的月度銷售額和利潤記錄。

The sales growth at Motion continues to be broad-based with double-digit growth across most product categories and major industries serve. During the quarter, we saw strength from industries such as food products, chemicals, mining and oil and gas. In addition, Motion continues to see solid performance with its corporate account initiatives, as sales with these customers grew approximately 20% in the first quarter.

Motion 的銷售增長基礎廣泛，大多數產品類別和主要服務行業均實現兩位數增長。本季度，我們看到了食品、化工、採礦和石油天然氣等行業的強勁表現。此外，Motion 的公司客戶計劃繼續取得穩健的業績，第一季度這些客戶的銷售額增長了約 20%。

The corporate account strength is driven from not only new customers but also strategic renewals of existing relationships. In Asia Pac, our Motion business continues to build on its momentum posting sales and profit growth well over 20% for the quarter. We realigned the leadership of the industrial business in Asia Pac by organizing under 1 automotive and industrial leadership team in the fall of 2022.

公司客戶實力不僅來自新客戶，還來自現有關係的戰略更新。在亞太地區，我們的 Motion 業務繼續保持強勁勢頭，本季度銷售額和利潤增長遠超 20%。 2022 年秋季，我們組建了一支汽車和工業領導團隊，重新調整了亞太地區工業業務的領導層。

The team has made impressive progress to identify opportunities take action and deliver performance. Industrial segment profit in the first quarter was approximately $262 million or 11.6% of sales, representing a 230 basis point increase from the same period last year. The continued profit improvement for this segment reflects excellent operating discipline on strong sales growth, both in North America and Asia Pac. In addition, the team in North America continues to build on the synergies from the KDG acquisition last year.

該團隊在發現機會、採取行動和交付績效方面取得了令人矚目的進展。第一季度工業部門利潤約為 2.62 億美元，佔銷售額的 11.6%，比去年同期增長 230 個基點。該部門利潤的持續改善反映了在北美和亞太地區強勁的銷售增長帶來的良好經營紀律。此外，北美團隊繼續利用去年收購 KDG 的協同效應。

As we reported at our Investor Day, thanks to the incredible teamwork for [many], Motion realized over $30 million in synergies in the first year, and we expect to achieve our target over $50 million in total synergies by the end of this year 1 year earlier than our initial expectation. For the quarter, Global Industrial represented $0.50 of total GPC segment profit.

正如我們在投資者日報導的那樣，由於 [許多] 令人難以置信的團隊合作，Motion 在第一年實現了超過 3000 萬美元的協同效應，我們預計到今年年底實現超過 5000 萬美元的總協同效應 1比我們最初的預期早了一年。本季度，全球工業佔 GPC 部門總利潤的 0.50 美元。

Turning to the Global Automotive segment. Total sales were $3.5 billion, an increase of approximately $230 million or 7% versus the same period in 2022. Total automotive sales benefited from our global diversification as our businesses outside the U.S. posted high single-digit to double-digit growth in local currency during the first quarter.

轉向全球汽車領域。總銷售額為 35 億美元，與 2022 年同期相比增加了約 2.3 億美元或 7%。汽車總銷售額受益於我們的全球多元化，因為我們在美國以外的業務在本期間以當地貨幣計算實現了高單位數至兩位數的增長第一季度。

From a cadence perspective, through the quarter, global automotive sales were strongest in February and March. On a comparable basis, Global Automotive sales increased approximately 7% and with comps ranging from low single digits in the United States to low double-digit growth in Europe and Asia Pac. As Paul mentioned, we remain encouraged by the solid industry fundamentals and team execution which we believe will continue to drive profitable growth.

從節奏的角度來看，整個季度，全球汽車銷售在 2 月和 3 月最為強勁。在可比基礎上，全球汽車銷量增長了約 7%，從美國的低個位數增長到歐洲和亞太地區的低兩位數增長不等。正如保羅所提到的，我們仍然對穩固的行業基本面和團隊執行力感到鼓舞，我們相信這將繼續推動盈利增長。

Global Automotive segment profit in the first quarter was $264 million, essentially flat with last year and segment operating margin was 7.5% compared to 8.1% in 2022. The strong performance of our European, Canadian and Asia Pac businesses helped to partially offset lower margins in our U.S. Automotive business. Profit in the U.S. Automotive business was impacted by a sluggish start to the year on sales, combined with planned investments in wages and elevated freight out expense. Now let's turn to an overview of our automotive business performance by geography.

第一季度全球汽車部門利潤為 2.64 億美元，與去年基本持平，部門營業利潤率為 7.5%，而 2022 年為 8.1%。我們歐洲、加拿大和亞太地區業務的強勁表現幫助部分抵消了較低的利潤率我們的美國汽車業務。美國汽車業務的利潤受到年初銷售低迷的影響，加上計劃中的工資投資和運費增加。現在讓我們來看看我們按地理位置劃分的汽車業務績效概覽。

In the U.S., automotive sales grew approximately 4% during the quarter with comparable sales growth of approximately 3%. The first quarter represents the toughest year-over-year comparison of 2023 with an approximate 12% comp growth in the first quarter of 2022. Looking at our average daily sales, growth was relatively consistent throughout the quarter. However, milder winter temperatures combined with extreme weather events impacted automotive demand in certain product categories and periodically disrupted operations.

在美國，本季度汽車銷量增長約 4%，可比銷售額增長約 3%。第一季度是 2023 年最艱難的同比比較，2022 年第一季度的複合增長率約為 12%。從我們的平均每日銷售額來看，整個季度的增長相對穩定。然而，較溫和的冬季氣溫加上極端天氣事件影響了某些產品類別的汽車需求，並週期性地中斷了運營。

As examples, sales of batteries were positive, but below internal plans during the quarter, particularly in the Northeast. More broadly, we offset sluggish categories in heating and cooling and UnderCar with strength in various core categories such as filters, brakes and fluids, all of which had growth above the U.S. average. Growth was consistent across our regions, except for our West region, which experienced a more pronounced negative impact from weather, which temporarily disrupted many of our operations.

例如，本季度電池銷售情況良好，但低於內部計劃，尤其是在東北地區。更廣泛地說，我們用濾清器、制動器和液體等各種核心類別的實力抵消了加熱和冷卻以及 UnderCar 領域的低迷類別，所有這些類別的增長都高於美國平均水平。我們各地區的增長是一致的，除了我們的西部地區，該地區受到天氣的負面影響更為明顯，這暫時中斷了我們的許多業務。

Overall, we estimate that weather negatively impacted U.S. automotive sales by approximately 1% in the quarter. Sales to both commercial and retail customers were positive with mid-single-digit commercial growth outpacing retail. Our commercial business saw sales increase across all customer segments, including continued strength with our fleet and government channel and mid-single-digit growth in our NAPA AutoCare network.

總體而言，我們估計天氣對本季度美國汽車銷量的負面影響約為 1%。對商業和零售客戶的銷售額都是積極的，商業增長超過零售的中等個位數。我們的商業業務在所有客戶群中都實現了銷售額增長，包括我們的車隊和政府渠道的持續實力以及我們的 NAPA AutoCare 網絡的中個位數增長。

The sales performance at U.S. Automotive started the year slow relative to our expectations. As a result, the team acted during March to address cost while balancing its longer-term investment priorities. The benefits of the actions will be weighted towards the second half of the year. Sales have improved during the first half of April when compared to March and the team remains focused on delivering in '23 despite the soft start to the year.

相對於我們的預期，U.S. Automotive 年初的銷售業績較慢。因此，該團隊在 3 月份採取行動解決成本問題，同時平衡其長期投資優先事項。這些行動的好處將在今年下半年體現。與 3 月相比，4 月上半月的銷售額有所改善，儘管今年開局不佳，但團隊仍專注於 23 年的交付。

In Canada, sales grew approximately 9% in local currency during the first quarter with comparable sales growth of approximately 9%. Our Canadian performance reflects strong growth in several categories like brakes, chassis and filtration, all of which were up double digits in the first quarter. In addition, we saw strong performance in our heavy-duty business, which outperformed the total Canadian growth rate. These categories helped offset headwinds in certain weather-related categories like batteries, which were pressured by a milder winter season.

在加拿大，第一季度銷售額以當地貨幣計算增長約 9%，可比銷售額增長約 9%。我們在加拿大的業績反映了製動、底盤和過濾等多個類別的強勁增長，所有這些類別在第一季度均實現了兩位數的增長。此外，我們的重型業務表現強勁，超過了加拿大的總體增長率。這些類別有助於抵消某些與天氣相關的類別的逆風，例如電池，這些類別受到較溫和的冬季的壓力。

We're pleased with the strong quarter in Canada, and we continue to see compelling opportunities for long-term growth due to our leading market position, solid industry fundamentals, share gain initiatives and strong team execution. In Europe, our automotive team delivered another exceptional quarter with total sales growth of approximately 22% in local currency and comparable sales growth of approximately 13%.

我們對加拿大的強勁季度感到滿意，並且由於我們領先的市場地位、穩固的行業基本面、份額增長計劃和強大的團隊執行力，我們繼續看到令人信服的長期增長機會。在歐洲，我們的汽車團隊又創造了一個出色的季度，以當地貨幣計算的總銷售額增長了約 22%，可比銷售額增長了約 13%。

The strong growth in market share gains across Europe continue to be driven by solid execution of key initiatives. During the first quarter, we saw high single-digit to double-digit growth across each of our geographies as our teams continue to win new business with key accounts drive higher share of wallet with existing accounts and expand the NAPA brand in the region.

關鍵舉措的穩健執行繼續推動整個歐洲市場份額的強勁增長。在第一季度，我們在每個地區都看到了高個位數到兩位數的增長，因為我們的團隊繼續通過主要客戶贏得新業務，從而提高現有客戶的錢包份額，並在該地區擴大 NAPA 品牌。

We're on track to grow our NAPA branded sales from EUR 300 million in 2022 to approximately EUR 400 million in 2023. Our entry into Spain and Portugal in 2022 has exceeded our expectations and value creation plans as it benefits from the NAPA brand and European scale advantage. In addition, our team is expanding our NexDrive EV service shops to approximately 400 locations, up from 150 shops in 2022.

我們有望將我們的 NAPA 品牌銷售額從 2022 年的 3 億歐元增長到 2023 年的約 4 億歐元。我們在 2022 年進入西班牙和葡萄牙市場超出了我們的預期和價值創造計劃，因為它受益於 NAPA 品牌和歐洲規模優勢。此外，我們的團隊正在將我們的 NexDrive EV 服務店從 2022 年的 150 家增加到大約 400 家。

We believe our NexDrive offering will position the European team to lead our industry in the growing EV aftermarket. In the Asia Pac automotive business, sales in the first quarter increased approximately 14% in local currency from the same period in the prior year, with comparable sales growth of approximately 11%. Both commercial and retail sales continued to perform well with both growing at a double-digit rate in the first quarter.

我們相信我們的 NexDrive 產品將使歐洲團隊在不斷增長的電動汽車售後市場中引領我們的行業。在亞太區汽車業務方面，第一季度銷售額按當地貨幣計算較上年同期增長約 14%，可比銷售額增長約 11%。商業和零售銷售繼續表現良好，第一季度均以兩位數的速度增長。

In addition, March saw record sales and profit results across several go-to-market channels, including Repco, NAPA and our motorcycle accessories. Asia Pac continued to make impressive progress on its talent and culture and customer-centric growth initiatives. We continue to complement organic growth with strategic acquisitions to capture share in our fragmented markets and create shareholder value.

此外，3 月份，包括 Repco、NAPA 和我們的摩托車配件在內的多個上市渠道的銷售額和利潤均創下歷史新高。亞太地區在其人才和文化以及以客戶為中心的增長計劃方面繼續取得令人矚目的進展。我們繼續通過戰略收購來補充有機增長，以在我們分散的市場中佔據份額並創造股東價值。

During the first quarter, we completed several bolt-on acquisitions primarily consisting of small automotive store groups that increased local market density in existing geographies. Our acquisition pipeline remains active and will remain disciplined to pursue transactions that extend our leadership and create long-term value. In summary, the global GPC team delivered strong first quarter results, and we remain confident in the outlook for the balance of the year despite a dynamic environment.

在第一季度，我們完成了幾項主要由小型汽車商店集團組成的補強收購，這些收購增加了現有地區的本地市場密度。我們的收購管道仍然活躍，並將繼續遵守紀律，以尋求能夠擴大我們的領導地位並創造長期價值的交易。總而言之，全球 GPC 團隊在第一季度取得了強勁的業績，儘管環境充滿活力，但我們對今年剩餘時間的前景仍然充滿信心。

We will execute our near and long-term initiatives and focus on what we can control. Our investments in our people, customer solutions, technology, supply chain and emerging tech will continue to enhance our capabilities and leadership positions. Thank you again to the entire GPC team for the hard work and performance.

我們將執行我們的近期和長期計劃，並專注於我們可以控制的事情。我們在人員、客戶解決方案、技術、供應鍊和新興技術方面的投資將繼續增強我們的能力和領導地位。再次感謝整個 GPC 團隊的辛勤工作和表現。

With that, I'll turn the call over to Bert.

有了這個，我會把電話轉給伯特。

Thank you, Will, and thanks to everyone for joining us today. We are very proud of our teams as they continue to navigate a dynamic environment, and I'm pleased to walk you through the key highlights of our first quarter performance. Before I get started on the details of our results, I would like to note that we had no nonrecurring items in the first quarter of 2023. However, our comparisons to the prior year do exclude certain nonrecurring items in 2022, primarily related to the integration of KDG.

謝謝你，威爾，感謝大家今天加入我們。我們為我們的團隊感到非常自豪，因為他們繼續在充滿活力的環境中航行，我很高興向您介紹我們第一季度業績的主要亮點。在我開始詳細介紹我們的結果之前，我想指出我們在 2023 年第一季度沒有非經常性項目。但是，我們與上一年的比較確實排除了 2022 年的某些非經常性項目，主要與整合有關的KDG。

Total GPC sales increased 8.9% or $470 million to $5.8 billion in the first quarter of 2023. This reflects an 8.7% improvement in comparable sales, including mid-single-digit levels of inflation and a 2.4% contribution from acquisitions. These items were partially offset by a 2.2% unfavorable impact of foreign currency. Overall, our balanced portfolio and global diversification drove record total sales and strong earnings to start the year.

2023 年第一季度，GPC 總銷售額增長 8.9% 或 4.7 億美元，達到 58 億美元。這反映出可比銷售額增長了 8.7%，其中包括中等個位數水平的通貨膨脹和 2.4% 的收購貢獻。這些項目被外匯 2.2% 的不利影響部分抵消。總體而言，我們平衡的投資組合和全球多元化推動了今年年初創紀錄的總銷售額和強勁的收益。

Our gross margin was 34.9% in the first quarter, improving 30 basis points from our adjusted gross margin last year, primarily driven by ongoing investments in our pricing and sourcing initiatives. The favorable impact of these and other initiatives contributed approximately 60 basis points of core gross margin improvement. These gains were partially offset by 2 key headwinds. First, a shift in sales mix related to the strength of our industrial business, which impacted gross margin by approximately 15 basis points; and second, foreign currency, which also impacted gross margin by approximately 15 basis points.

我們第一季度的毛利率為 34.9%，比去年調整後的毛利率提高了 30 個基點，這主要是由於我們對定價和採購計劃的持續投資。這些和其他舉措的有利影響貢獻了大約 60 個基點的核心毛利率改善。這些收益被 2 個主要不利因素部分抵消。首先，與我們工業業務實力相關的銷售組合發生變化，這對毛利率產生了約 15 個基點的影響；其次，外幣也影響了毛利率約 15 個基點。

As we highlighted at Investor Day, our ongoing execution of key strategic initiatives around gross margin continue to drive strong results. Our total operating and nonoperating expenses in the first quarter were approximately $1.6 billion, up 9% from adjusted expenses in 2022 and in line with the prior year at 27.9% of sales. The increase in expenses in Q1 reflects the combination of solid discipline in managing core costs, offset by planned investments in our teams due to inflationary wage conditions and increased spending in technology to support our ongoing strategic initiatives. As Will noted, with elevated operating costs pressuring margins in the first quarter in our U.S. automotive business, we have taken actions in March to address these headwinds, which we anticipate to persist into Q2.

正如我們在投資者日強調的那樣，我們持續執行圍繞毛利率的關鍵戰略計劃繼續推動強勁的業績。我們第一季度的總運營和非運營支出約為 16 億美元，比 2022 年調整後的支出增長 9%，與上年同期持平，佔銷售額的 27.9%。第一季度支出的增加反映了在管理核心成本方面嚴格的紀律，但由於工資水平上漲而對我們團隊的計劃投資以及為支持我們正在進行的戰略計劃而增加的技術支出所抵消。正如 Will 所指出的那樣，由於運營成本上升對我們美國汽車業務第一季度的利潤率構成壓力，我們在 3 月份採取了行動來應對這些不利因素，我們預計這些不利因素將持續到第二季度。

We expect these cost actions, combined with our ongoing discipline on costs across the remainder of the business and the execution of our broad base of strategic initiatives to drive further improvement in operational efficiencies and productivity for GPC. Our performance in the first quarter generated total segment profit of $526 million, up 16% and a segment profit margin of 9.1%, a 50 basis point improvement from last year and our fifth consecutive quarter of segment margin expansion. Our first quarter net income was $304 million or $2.14 per diluted share.

我們預計這些成本行動，結合我們對其餘業務成本的持續紀律以及我們廣泛的戰略舉措基礎的執行，將進一步提高 GPC 的運營效率和生產力。我們在第一季度的業績創造了 5.26 億美元的分部總利潤，增長 16%，分部利潤率為 9.1%，比去年提高 50 個基點，是我們分部利潤率連續第五個季度擴大。我們第一季度的淨收入為 3.04 億美元或每股攤薄收益 2.14 美元。

This compares to adjusted net income of $266 million or $1.86 per diluted share in 2022, an increase of 15%. Our ability to deliver our 11th consecutive quarter of double-digit adjusted earnings growth is indicative of the hard work and crisp execution by our teams to implement our strategic initiatives across our global operations. Turning to our cash flows.

相比之下，2022 年調整後的淨收入為 2.66 億美元或每股攤薄收益 1.86 美元，增長了 15%。我們能夠連續第 11 個季度實現兩位數的調整後收益增長，這表明我們的團隊在全球業務中實施我們的戰略舉措的辛勤工作和清晰的執行力。轉向我們的現金流。

We generated $198 million in cash from operations in the first quarter. This compares to $399 million in cash from operations last year, which included the sale of $200 million in receivables under our AR sales agreement. Free cash flow was $109 million, and we closed the first quarter with $2.1 billion in available liquidity. Our debt to adjusted EBITDA is 1.7x, which compares to our targeted range of 2 to 2.5x.

我們在第一季度的運營中產生了 1.98 億美元的現金。相比之下，去年的運營現金為 3.99 億美元，其中包括根據我們的 AR 銷售協議出售的 2 億美元應收賬款。自由現金流為 1.09 億美元，第一季度末我們的可用流動資金為 21 億美元。我們的調整後 EBITDA 債務是 1.7 倍，而我們的目標範圍是 2 到 2.5 倍。

We are well positioned with financial strength and flexibility to take advantage of growth opportunities that may become available across the business. We remain committed to our long history of disciplined capital allocation. Our 4 key priorities for capital allocation are unchanged and include investment in our business through capital expenditures and M&A and the return of capital to our shareholders through dividends and share repurchases.

我們在財務實力和靈活性方面處於有利地位，可以利用整個企業可能獲得的增長機會。我們仍然致力於我們長期以來嚴格的資本配置。我們資本配置的 4 個主要優先事項沒有改變，包括通過資本支出和併購對我們的業務進行投資，以及通過股息和股票回購向股東返還資本。

In the first quarter, we invested $88 million in capital expenditures, primarily around supply chain and technology. These investments support many of the initiatives we shared at Investor Day that we believe will drive the modernization of our business moving forward. We also invested $40 million for acquisitions which remains a key element of our growth strategy. As Will mentioned earlier, we continue to generate a robust pipeline of acquisition targets for our businesses.

第一季度，我們投資了 8800 萬美元用於資本支出，主要圍繞供應鍊和技術。這些投資支持我們在投資者日分享的許多舉措，我們相信這些舉措將推動我們業務的現代化向前發展。我們還投資了 4000 萬美元用於收購，這仍然是我們增長戰略的關鍵要素。正如 Will 之前提到的，我們繼續為我們的業務生成一個強大的收購目標管道。

For the quarter, we returned $194 million to shareholders in the form of dividends and share repurchases. This includes $126 million in cash dividends paid to our shareholders and $68 million of cash used to repurchase 411,000 shares. We are well positioned with the cash flow to effectively deploy our capital through all business cycles.

本季度，我們以股息和股票回購的形式向股東返還了 1.94 億美元。這包括支付給股東的 1.26 億美元現金股息和用於回購 411,000 股股票的 6800 萬美元現金。我們在現金流方面處於有利地位，可以在所有商業周期中有效地部署我們的資本。

Turning to our outlook for 2023. We are updating our full year guidance previously provided in our earnings release on February 23 and reaffirmed on March 23 at our Investor Day. We are raising our guidance for diluted earnings per share to a range of $8.95 to $9.10, an increase of approximately 7% to 9% from 2022.

談到我們對 2023 年的展望。我們正在更新我們之前在 2 月 23 日的收益發布中提供的全年指導，並在 3 月 23 日的投資者日重申。我們將稀釋後每股收益的指引上調至 8.95 美元至 9.10 美元，比 2022 年增長約 7% 至 9%。

This represents a $0.15 increase from our previous guidance of $8.80 to $8.95. Our sales guidance is unchanged, and we continue to expect total sales growth for 2023 to be in the range of 4% to 6%. By business segment, we are guiding to the following: 4% to 6% total sales growth for the Automotive segment with comparable sales growth also in the 4% to 6% range. For the Industrial segment, we are expecting total sales growth of 4% to 6%, also with comparable sales increase.

這比我們之前的指導價 8.80 美元增加了 0.15 美元至 8.95 美元。我們的銷售指引不變，我們繼續預計 2023 年的總銷售額增長將在 4% 至 6% 之間。按業務部門，我們的指導方針如下：汽車部門的總銷售額增長 4% 至 6%，可比銷售額增長也在 4% 至 6% 的範圍內。對於工業部門，我們預計總銷售額將增長 4% 至 6%，同時可比銷售額也會增長。

And with the ongoing assumption of stronger first half year-over-year sales growth relative to the second half of 2023, and although our view on Q2 and Q3 has improved modestly. Turning to a few other items of interest. We are raising our outlook for cash from operations to a range of $1.3 billion to $1.4 billion, an increase from $1.2 billion to $1.4 billion previously. We are raising our outlook for free cash flow to a range of $900 million to $1 billion, an increase from our previous guidance of $800 million to $1 billion. We continue to plan for CapEx of $375 million to $400 million for the full year, which includes incremental investments in technology and supply chain, among others.

並且持續假設與 2023 年下半年相比，上半年銷售額同比增長更為強勁，儘管我們對第二季度和第三季度的看法略有改善。轉向其他一些感興趣的項目。我們將運營現金預期上調至 13 億美元至 14 億美元的範圍，從之前的 12 億美元增加至 14 億美元。我們將自由現金流的前景提高到 9 億至 10 億美元的範圍，高於我們之前 8 億至 10 億美元的指導。我們繼續計劃全年資本支出為 3.75 億美元至 4 億美元，其中包括對技術和供應鏈的增量投資等。

In closing, we are very pleased with the strong start to the year and positive momentum in our business. While our U.S. Automotive business had a slow start to the year, we've started Q2 with good sales momentum and expect our team to execute, build traction through the second quarter and have a solid second half of 2023. Our outlook for the full year reflects the ongoing confidence in our strategic plans and our ability to execute through the dynamic economic environment.

最後，我們對今年的強勁開局和業務的積極勢頭感到非常高興。雖然我們的美國汽車業務今年開局緩慢，但我們以良好的銷售勢頭開始了第二季度，並期望我們的團隊能夠執行，在第二季度建立牽引力，並在 2023 年下半年取得穩健的發展。我們對全年的展望反映了我們對戰略計劃的持續信心以及我們在充滿活力的經濟環境中執行的能力。

GPC is truly differentiated with our business mix, global footprint, our size and scale, the execution of initiatives and our talent, we have a unique value proposition. As we shared at Investor Day, our team is well positioned to execute our plans to deliver our targets for a double-digit EPS CAGR over the next 3 years and double-digit margins by 2025. Thank you, and we will now turn it back to the operator for your questions.

GPC 在我們的業務組合、全球足跡、我們的規模和規模、計劃的執行和我們的人才方面真正脫穎而出，我們擁有獨特的價值主張。正如我們在投資者日分享的那樣，我們的團隊已準備好執行我們的計劃，以實現我們在未來 3 年實現兩位數 EPS CAGR 和到 2025 年實現兩位數利潤率的目標。謝謝，我們現在將把它逆轉向接線員詢問您的問題。

(Operator Instructions)

（操作員說明）

And the first question will be from Kate McShane from Goldman Sachs.

第一個問題將來自 Goldman Sachs 的 Kate McShane。

Just 1 housekeeping question. Just it sounds like weather was a little noisy during the quarter, but the fundamentals are still intact. Can you remind us what exposure you have to California or to the West?

只有 1 個客房清潔問題。聽起來本季度的天氣有點嘈雜，但基本面仍然完好無損。你能提醒我們你對加州或西部有什麼了解嗎？

Yes. Kate, it's a good question. I would say we don't have an outsized exposure to any 1 region. The breakdown of the U.S. automotive revenue is probably directionally correct, equally split across the regions.

是的。凱特，這是個好問題。我會說我們對任何一個地區都沒有過多的接觸。美國汽車收入的細分方向可能是正確的，各地區平均分配。

Okay. And then I think you mentioned in the prepared comments that because of the sluggish start in January, your team pivoted to some new strategies that will impact the second half. Can you talk a little bit more about what that is? And what impact do you think it will have in the second half?

好的。然後我想你在準備好的評論中提到，由於 1 月份開局低迷，你的團隊轉向了一些將影響下半年的新戰略。你能多談談那是什麼嗎？您認為下半年會有什麼影響？

Yes, Kate, this is Bert. I'll talk a little bit about -- maybe I'll start with the outlook as a starting point, just to give you some context for the full year. I'll talk a little bit about Q2, and then I'll flip it to Will and will give you a little bit more color on the cost actions in U.S. auto specifically. When we think about the full year, we did raise the outlook $0.15. That's a 1.5% increase on the top end of our range, really on the back of a better-than-expected first quarter and our expectations, as we've commented for U.S. Auto to recover against some of these Q1 headwinds and a stronger view on Motion performance over the coming 2 quarters.

是的，凱特，這是伯特。我會談一點——也許我會以前景為起點，只是為了給你一些全年的背景。我會稍微談一談第二季度，然後我會把它交給威爾，並會給你更多關於美國汽車成本行動的具體信息。當我們考慮全年時，我們確實將前景提高了 0.15 美元。這是我們區間上限的 1.5% 的增長，這實際上是在第一季度好於預期和我們的預期的支持下，正如我們評論的那樣，美國汽車業將在第一季度的一些不利因素和更強的觀點中復蘇關於未來兩個季度的運動表現。

When we think about that, I do want to remind everyone that we do expect growth to moderate in 2023. We had exceptional growth in 2021 and 2022. But we're still looking at very solid earnings growth at 7% to 9% year-over-year with the new range. The business continues to perform well.

當我們考慮到這一點時，我確實想提醒大家，我們確實預計 2023 年增長將放緩。我們在 2021 年和 2022 年實現了異常增長。但我們仍然期待每年 7% 至 9% 的非常穩健的收益增長-超過一年的新系列。該業務繼續表現良好。

We're going to continue to capitalize on size and scale, and bullish against our execution of our own strategic initiatives. And I think we're off to a great start as we march towards our 2025 targets that we shared on Investor Day. We're obviously being very balanced and being prudent against the external factors that are out there. Inflation levels, foreign currency and the geopolitical landscape, just to name a few.

我們將繼續利用規模和規模，並看好我們執行自己的戰略計劃。而且我認為，在我們朝著我們在投資者日分享的 2025 年目標邁進的過程中，我們有了一個良好的開端。顯然，我們非常平衡，並且對現有的外部因素持謹慎態度。通貨膨脹水平、外彙和地緣政治格局，僅舉幾例。

When I think about Q2, just to give you some color there about how we're thinking about the upcoming quarter, we started off in a good place. Global Automotive is in line with April, 7% on the top line. And within that, as Will stated in his prepared remarks, U.S. auto has started off with good momentum in the month of April, accelerating from March. We see continued strength in international auto and the global industrial business momentum is carried into Q2.

當我想到第二季度時，只是為了給你一些關於我們如何考慮即將到來的季度的顏色，我們從一個好的地方開始。全球汽車與 4 月份持平，收入增長 7%。其中，正如威爾在準備好的發言中所說，美國汽車在 4 月份開局良好，從 3 月份開始加速增長。我們看到國際汽車持續走強，全球工業業務勢頭延續到第二季度。

But again, we do expect that to normalize against the Q1 rate. those cost pressures in U.S. Auto, I think will persist into the early part of Q2 for the balance of the quarter probably, and Will will talk about those just in a moment on what we're doing to get us back to the expected level of performance that we're looking for in the second half.

但同樣，我們確實預計這會相對於第一季度利率正常化。美國汽車業的那些成本壓力，我認為可能會持續到第二季度的早期，直到本季度的剩餘時間，Will 稍後會談到這些，我們正在做些什麼來讓我們回到預期的水平我們在下半場尋找的表現。

One thing I'd remind you, too, on Q2 is just as you think about your models, recall that Q2 of 2022 represented our strongest earnings growth last year. And as a result, when we think about our guidance for the full year, the second quarter of 2023 will be -- our expectation will be that it will be our lowest earnings growth rate for this year. So Will, maybe you want to just take that from there and fill in a little bit more specific on the cost actions at U.S. Auto.

在第二季度，我也要提醒您一件事，就像您考慮模型一樣，回想一下 2022 年第二季度代表了我們去年最強勁的收益增長。因此，當我們考慮全年的指引時，2023 年第二季度將是——我們預計這將是我們今年最低的盈利增長率。所以威爾，也許你想從那裡拿走它，並在美國汽車公司的成本行動上填寫一些更具體的內容。

Yes. Happy to Bert. Kate, I would say, obviously, the teams around the world have been incredibly focused on costs. So I wouldn't say there's any necessarily new actions or levers being pulled. I think we're just stepping up the urgency and the focus at U.S. Automotive. They're predominantly around as you would suspect, all things people in particular around more rigor on over time in stores and DCs, just being super thoughtful to make sure that we're balancing cost with taking care of our customers, T&E expense. We've also pulled together some accelerated plans around merchandising and freight cost strategies, which will take a little bit of time to materialize here through the second half of the year.

是的。對伯特很高興。凱特，我想說，很明顯，世界各地的團隊都非常關注成本。所以我不會說有任何必要的新行動或槓桿被拉動。我認為我們只是在加強對美國汽車的緊迫性和關注。正如您所懷疑的那樣，它們主要存在於周圍，尤其是隨著時間的推移，人們在商店和 DC 中更加嚴格，只是非常周到地確保我們在成本與照顧客戶、T&E 費用之間取得平衡。我們還制定了一些圍繞商品銷售和運費策略的加速計劃，這些計劃將在今年下半年在這裡實現。

But we're going to balance near-term cost actions with, as we've talked about, long-term investments. and make sure that we're doing the right thing for the business over the medium and long term.

但正如我們所討論的那樣，我們將在近期成本行動與長期投資之間取得平衡。並確保我們在中長期內為企業做正確的事。

And the next question will be from Bret Jordan from Jefferies.

下一個問題將來自 Jefferies 的 Bret Jordan。

On the U.S. auto, I think you said the comp was plus 3%. Could you break out price versus units in that number?

關於美國汽車，我想你說的是 comp 加 3%。你能把價格與那個數字中的單位分開嗎？

Yes, Bret. So total GPC price, mid-single digits. Global Automotive, slightly higher than that. I would put U.S. Automotive in that category. Industrial slightly under the mid-single digit, low single digit. So probably mid-single digit plus is probably a good estimate for U.S. Auto.

是的，布雷特。所以總的 GPC 價格，中個位數。全球汽車，略高於此。我會將美國汽車公司歸入該類別。工業略低於中個位數、低個位數。因此，中等個位數加可能是美國汽車的一個很好的估計。

Okay. And then you talked about margin benefits from pricing initiatives. And could you talk about what you're seeing out there? And I guess, auto and industrial as well as sort of market share dynamics and how the competitive pricing environment looks this year? Obviously, you guys were investing in price a year or so ago, but Auto Plus has gone Chapter 11, so maybe there's some sort of change in dynamics out there as far as the competition.

好的。然後你談到了定價舉措帶來的利潤收益。你能談談你在那裡看到的東西嗎？我想，汽車和工業以及某種市場份額動態以及今年競爭激烈的定價環境如何？顯然，你們大約一年前就在價格上進行投資，但 Auto Plus 已經進入第 11 章，所以就競爭而言，動態可能會發生某種變化。

Yes. It's a good question, Bret. I would say, generally speaking, in U.S. Automotive, the -- we haven't seen any material change in the pricing dynamics as we've talked about many quarters before. It is a dynamic environment. That's why we're so focused on our strategic pricing initiatives and all the investments we're making there.

是的。這是個好問題，布雷特。我會說，一般來說，在美國汽車行業，我們沒有看到定價動態有任何實質性變化，因為我們之前已經討論過很多季度。這是一個動態的環境。這就是為什麼我們如此專注於我們的戰略定價計劃以及我們在那裡進行的所有投資。

Like every industry, people are picking and choosing and executing strategies in the market just like we are. But it is kind of a rational but dynamic market. So -- we're really not seeing anything materially different than what we've seen in the last few quarters. We're going to focus on what we think is right from a strategic pricing perspective. As you heard at Investor Day, we've put a lot of investment into tools and talent and new rigor around collecting intelligence to make sure that we're in the right place for our customers.

像每個行業一樣，人們就像我們一樣在市場上挑选和執行策略。但這是一個理性但充滿活力的市場。所以 - 我們真的沒有看到與我們在過去幾個季度看到的有什麼實質性的不同。我們將從戰略定價的角度關注我們認為正確的事情。正如您在投資者日聽到的那樣，我們在工具和人才方面投入了大量資金，並在收集情報方面採取了新的嚴格措施，以確保我們為客戶提供正確的服務。

You also heard a lot about the NAPA brand and the role that, that plays in particular, in Europe in our assortment strategy and all the great work that our merchants and sourcing teams are doing around the world. So we're being very thoughtful in this pricing environment, but I wouldn't say there's a material change despite some of the developments that you noted in your question.

您還聽到了很多關於 NAPA 品牌的信息，以及它在歐洲尤其在我們的分類策略中所扮演的角色，以及我們的商家和採購團隊在世界各地所做的所有出色工作。所以我們在這個定價環境中非常周到，但我不會說儘管你在問題中提到了一些發展，但我不會說有實質性的變化。

And Bret, this is Bert Nappier. I'll just add a little bit to that. And you see that effectiveness with our margin -- gross margin expansion here in Q1 up 30 basis points.

Bret，這是 Bert Nappier。我會補充一點。你會看到我們的利潤率的有效性——第一季度的毛利率增長了 30 個基點。

And within that, as I mentioned in my prepared remarks, 60 basis points of improvement from these activities that Will just outlined. So the core is really performing well. We had some headwinds from mix and FX, but we're really pleased with how all of that work is flowing through and delivering in terms of gross margin improvement.

並且，正如我在準備好的發言中提到的那樣，Will 剛剛概述的這些活動帶來了 60 個基點的改進。所以核心真的表現很好。我們在混合和 FX 方面遇到了一些不利因素，但我們對所有這些工作的進展情況以及毛利率提高方面的表現感到非常滿意。

And just sort of a follow-up on that point. Now that you've got Asia Pac sort of industrial and auto under 1 team. the potential to leverage the sourcing, buying products from the same suppliers for both segments. Is that something that you're seeing better traction in down there versus the broader portfolio?

只是關於這一點的後續行動。現在你已經在一個團隊下擁有了亞太地區的工業和汽車。為兩個細分市場利用採購、從同一供應商購買產品的潛力。與更廣泛的投資組合相比，你是否看到了更好的牽引力？

I wouldn't isolate it to down in Asia Pac. In fact, we just had our global sourcing teammates here in Atlanta from all around the world to continue to build on this exciting momentum where all geographies on both sides of the business will be better aligned and more press on where we have our opportunities.

我不會將其隔離到亞太地區。事實上，我們剛剛在亞特蘭大召集了來自世界各地的全球採購團隊，以繼續推動這一令人興奮的勢頭，業務雙方的所有地區都將更好地協調一致，並在我們擁有機會的地方更加緊迫。

So I wouldn't say that Asia Pac is benefiting now more on sourcing. Having said that, they are benefiting from being together as a team, and that's a big part of how they're thinking about their business as they move forward. And so whether you're talking about the organization design, back-office cost, et cetera. I think there's a lot of opportunities for them to continue to work better as 1 organization.

所以我不會說亞太地區現在在採購方面受益更多。話雖如此，他們從團隊合作中受益，這是他們在前進過程中思考業務的重要組成部分。因此，無論您是在談論組織設計、後台成本等等。我認為他們有很多機會作為一個組織繼續更好地工作。

Would you do broader integration globally? If it works in Asia Pac, would you just think about merging more of the overhead on both sides of the business?

您會在全球範圍內進行更廣泛的整合嗎？如果它在亞太地區行之有效，您是否會考慮合併業務雙方的更多管理費用？

I think we have an opportunity to work together to leverage our scale, the definition of what you mean by merged business units, probably not. But working together as a team, you heard at Investor Day, the importance of 1 GPC. That's the perfect philosophy around how do we work together to make sure that we're capturing all the opportunities as a global organization.

我認為我們有機會共同努力來利用我們的規模，即合併業務部門的定義，可能不會。但是作為一個團隊一起工作，你在投資者日聽到了 1 GPC 的重要性。這是關於我們如何合作以確保我們作為一個全球組織抓住所有機會的完美理念。

And the next question will be from Scot Ciccarelli from Truist Securities.

下一個問題將來自 Truist Securities 的 Scot Ciccarelli。

This is Josh on for Scot. So on the segment margins, with automotive down 60 basis points in the quarter, industrial up over 200. Can you just unpack a little more what the drivers were there for each segment?

這是蘇格蘭人的喬希。因此，在細分市場利潤率方面，本季度汽車行業下降了 60 個基點，而工業行業則增長了 200 多個基點。你能再多解釋一下每個細分市場的驅動因素嗎？

Josh, it's Bert. I'll take that one, and I'll start kind of at the GPC level. When we think about -- we had margin expansion for gross margin, really, where we're focused on some of that drag is in SG&A. SG&A was up 10 basis points year-over-year. That's really a mix of 3 factors: inflation, planned investments in the business and then offset by really strong leverage across the business outside of U.S. Auto. For the quarter, when we think about how to really think about the elements, I would say we had SG&A pressure about 50 basis points from those planned investments that we shared at the beginning of the year and again at Investor Day, in IT and talent.

喬希，是伯特。我會接受那個，我將從 GPC 級別開始。當我們考慮時 - 我們的毛利率有利潤率增長，真的，我們關注的是 SG&A 中的一些拖累。 SG&A 同比增長 10 個基點。這實際上是 3 個因素的組合：通貨膨脹、計劃中的業務投資，然後被美國汽車以外業務的強大槓桿所抵消。對於本季度，當我們考慮如何真正考慮這些要素時，我想說我們在年初和投資者日分享的那些計劃投資中，SG&A 壓力約為 50 個基點，在 IT 和人才方面.

Now some of the talent cost is certainly going to be inflation driven, but we're making very thoughtful investment in talent and IT, which we see as critical for the future. When you look at U.S. Auto, the quarter was impacted by higher personnel costs there and freight delivery costs. So that's the outbound freight from a DC to a store. The wage side was really again the impact of planned investments we made to ensure we're staying competitive. I think everybody is facing that across all businesses and talent is a key part of our long-term success.

現在一些人才成本肯定會受到通貨膨脹的驅動，但我們正在對人才和 IT 進行非常周到的投資，我們認為這對未來至關重要。當你看美國汽車公司時，該季度受到那裡更高的人員成本和貨運成本的影響。這就是從 DC 到商店的出站貨運。工資方面實際上再次是我們為確保我們保持競爭力而進行的計劃投資的影響。我認為每個人都面臨著所有業務和人才是我們長期成功的關鍵部分。

On the freight side, we're seeing the impact of higher rates from our carriers as they're looking to do the same thing, they're looking to cover higher wages due to driver shortages. So those 2 things on the automotive side were part of the equation. The other thing I would just say is that I turn back to this weather consideration. We really didn't anticipate that, as you would expect. None of us are forecasters here in terms of weather. But we didn't anticipate some of those weather impacts, particularly coming off the very strong December we had in U.S. Auto.

在貨運方面，我們看到我們的承運人提高費率的影響，因為他們希望做同樣的事情，他們希望彌補因司機短缺而導致的更高工資。因此，汽車方面的這兩件事是等式的一部分。我只想說的另一件事是，我回過頭來考慮天氣因素。正如您所期望的那樣，我們真的沒有預料到這一點。就天氣而言，我們都不是這裡的預報員。但我們沒有預料到其中一些天氣影響，特別是在美國汽車業經歷了非常強勁的 12 月之後。

So our staffing models were set to align to a sales run rate where we exited 2022. And that was probably a little bit higher than we needed to support Q1 softer sales levels. So all of that together compressed margin in U.S. Auto and was a bit of a headwind for us. As we look ahead, the cost of business is doing a little of doing business is a little higher and inflationary conditions are certainly contributing to that.

因此，我們的人員配置模型被設置為與我們 2022 年結束時的銷售運行率保持一致。這可能比我們支持第一季度疲軟銷售水平所需的要高一點。因此，所有這些共同壓縮了美國汽車公司的利潤率，對我們來說有點不利。展望未來，做生意的成本稍微高了一點，而通貨膨脹條件肯定是造成這種情況的原因。

We're reducing where we can. And again, investments we're making in the business that we shared at Investor Day are a big part of driving efficiency. So while, [to] is kind of take that back to the top level again and maybe talk about these wage investments in IT and why we think they're so important to us.

我們正在盡可能減少。再一次，我們在投資者日分享的業務投資是提高效率的重要組成部分。因此，[to] 有點再次回到最高水平，也許會談論這些 IT 工資投資，以及為什麼我們認為它們對我們如此重要。

On the IT side, we're making investments to improve our capabilities and modernize our platforms and to be in share that extensively last month. We think those are the right things to do. But in certain cases, the pivot in that space is to cloud-based technology. And as many of you know, that changes the dynamic from a capital to operating costs. And as I shared earlier this year, that's about a 30 basis point drag for us for the year.

在 IT 方面，我們正在進行投資以提高我們的能力並使我們的平台現代化，並在上個月廣泛分享。我們認為這些是正確的做法。但在某些情況下，該領域的重點是基於雲的技術。正如你們中的許多人所知，這改變了從資本成本到運營成本的動態。正如我今年早些時候分享的那樣，這對我們今年造成了大約 30 個基點的拖累。

On the talent side, it's a very competitive market out there for talent. And we're making smart investments with our people with a mid-single-digit wage increase. I think that's in line with most businesses, slightly higher for us than 2022. And we also made the decision to take some of the health care costs we were seeing and absorb them here at the corporate level rather than what we might normally do and pass those on to our employees through higher contributions from them.

在人才方面，這是一個競爭非常激烈的人才市場。我們正在以中個位數的工資增長對我們的員工進行明智的投資。我認為這與大多數企業一致，對我們來說比 2022 年略高。我們還決定承擔我們看到的一些醫療保健成本，並在公司層面吸收它們，而不是我們通常會做的和通過的那些通過他們更高的貢獻轉移到我們的員工身上。

And that's the right thing for our team right now. So I take that all together, we got a little bit of deleverage for the year 30 to 40 basis points. Those 2 things are 60. So you can see we're really leveraging outside of that U.S. Auto business right now.

這對我們的團隊來說是正確的。所以我把所有這些放在一起，我們今年有一點去槓桿化 30 到 40 個基點。這兩件事是 60。所以你可以看到我們現在真的在美國汽車業務之外利用。

And with that, we expect margin for the full year to be up 20 to 40 basis points. And as you saw in Q1, we were up 50 basis points.

因此，我們預計全年利潤率將上升 20 至 40 個基點。正如您在第一季度看到的那樣，我們上漲了 50 個基點。

Got it. Okay. That's helpful. And then could you just walk us through what you saw in terms of inflation during the quarter and what your expectations are for the balance of the year here?

知道了。好的。這很有幫助。然後，您能否向我們介紹一下您在本季度看到的通貨膨脹情況以及您對今年餘下時間的預期？

Sure. Yes, I'll take that 1 as well. As we look at Q1, inflation moderated slightly during the quarter. That was in line with our expectations. Again, we think monetary policies here in the U.S. and around the world are having the desired effect. But that does take a little time to flow through. Q1 inflation and sales, all GPC total was mid-single digit. Auto was high single digit. And again, industrial, which has been very consistent, low single digits.

當然。是的，我也會拿那個 1。當我們看第一季度時，通貨膨脹在本季度略有緩和。這符合我們的預期。同樣，我們認為美國和世界各地的貨幣政策正在產生預期的效果。但這確實需要一點時間才能完成。第一季度的通貨膨脹和銷售額，所有 GPC 總量均為中個位數。汽車是高個位數。再一次，工業，它一直非常一致，低個位數。

Our expectation for inflation for the rest of the year is for it to continue to moderate. That's pretty consistent with the view I just shared at Investor Day. Obviously, the actual impact is yet to be seen. But our assumption is that the Automotive business will tick down from high single digits to low single digits to close out the year. Industrial will stay in that low single-digit range and that GPC that translates in us going from mid-single digit to low single digits.

我們對今年剩餘時間的通脹預期是繼續放緩。這與我剛剛在投資者日分享的觀點非常一致。顯然，實際影響還有待觀察。但我們的假設是，汽車業務將從高個位數下降到低個位數，以結束這一年。工業將保持在低個位數範圍內，而 GPC 將我們從中個位數轉化為低個位數。

And the next question will come from Christopher Horvers from JPMorgan.

下一個問題將來自摩根大通的克里斯托弗霍弗斯。

So a couple of follow-up questions. First, is it fair to say that you were expecting U.S. NAPA to be more like a 4% comp for the first quarter, considering you pointed out a point of headwind on the weather side. And is that a fair interpretation of where the business is running in April?

所以有幾個後續問題。首先，考慮到您指出了天氣方面的不利因素，您是否預計第一季度美國 NAPA 的增長率更接近 4%？這是對 4 月份業務運行情況的公平解釋嗎？

The first part of your question is fair. And the second part of your question is fair.

你的問題的第一部分是公平的。你問題的第二部分是公平的。

Okay. And so dovetailing back to the NAPA division, you talked about 20 to 40 basis points of segment margin expansion. So was it -- is the original plan that you would deleverage the NAPA operating margin due to the investments?

好的。因此，回到 NAPA 部門，你談到了 20 到 40 個基點的部門利潤率擴張。那麼是不是 - 最初的計劃是您會因為投資而降低 NAPA 的營業利潤率嗎？

Chris, this is Bert. So when I talked about 20 to 40 basis points of segment margin improvement, I'm talking about GPC consolidated. I don't really want to get into parsing the onion too finely between the elements of that. But we were not expecting margin declines in either segment for the year. The [NAPA] would be difficult to achieve 20 to 40 basis points being up consolidated for either of the 2 segments to be down year-over-year.

克里斯，這是伯特。因此，當我談到分部利潤率提高 20 到 40 個基點時，我說的是 GPC 合併。我真的不想在其中的元素之間過於精細地解析洋蔥。但我們預計今年這兩個部門的利潤率都不會下降。 [NAPA] 很難實現 20 到 40 個基點的合併，因為這兩個部分中的任何一個都同比下降。

Look, we had a softer start to the year in U.S. Auto. We've got a great plan here in place with some cost actions we're taking, but it will take a little time to build traction and auger in through the quarter. We're looking for a really solid second half there and building that momentum for us, and we feel good about that.

看，美國汽車今年開局較為溫和。我們已經制定了一個很好的計劃，我們正在採取一些成本行動，但在整個季度建立牽引力和螺旋鑽需要一些時間。我們正在尋找一個真正穩固的下半場並為我們建立勢頭，我們對此感覺很好。

Got it. And then just on the freight front understanding that there's some wage cost being pass-through and driver shortages, but fuel prices surged in March of last year and all your freight out, I'm assuming it's a periodic expense. So should the freight start to be a tailwind here in the second quarter? And then how long before maybe some of the capitalized freight costs turned to a tailwind later in the year?

知道了。然後就運費而言，了解到有一些工資成本被轉嫁和司機短缺，但去年 3 月燃油價格飆升，你所有的運費都被運走了，我假設這是一項定期費用。那麼，運費是否應該在第二季度開始成為順風車？那麼，在今年晚些時候，一些資本化的運費成本可能會在多長時間內轉為有利因素？

Yes. Thanks, Chris. It's Bert again. Look, on the cost of ocean freight, those that are included in our inbound and cost of goods sold. My gross margin projection for the year and our guidance assumes we get a bit of a tailwind of that in the second half. That's clearly our expectation. I think that's in line with the market.

是的。謝謝，克里斯。又是伯特。看，關於海運成本，那些包含在我們的入站和銷售商品成本中的成本。我對今年的毛利率預測和我們的指導假設我們在下半年得到一些順風。這顯然是我們的期望。我認為這符合市場。

On the outbound freight, diesel fuel is still up year-over-year just slightly in the quarter. It started out January, I think, in the north of 20%, moderated a bit in February into the teens and then turned positive in March. The net sum of that was about a 3.5% increase for the quarter in fuel cost. And so we had a bit of a headwind there on top of the rates we're getting from the carriers in terms of fuel as it relates to diesel, and that is primary -- that's the primary component of that delivery cost as we think about fuel when it goes from the DC to the store.

在出境運費方面，柴油燃料在本季度仍同比略有上漲。它從 1 月開始，我認為，在 20% 的北部，2 月稍微緩和到十幾歲，然後在 3 月轉為正值。該季度的燃料成本淨額增加了約 3.5%。因此，除了我們從承運人那裡獲得的與柴油相關的燃料費率之外，我們還遇到了一些不利因素，這是主要的——正如我們所考慮的那樣，這是交付成本的主要組成部分當它從 DC 到商店時加油。

We would expect that, if March is an indicator that, that will start to tick down a bit and could be a benefit to us. Will mentioned that we've got some actions related to that. On the labor side, I think it's pretty sticky, though. When we think about these carriers, and we're all facing higher wages. Year-over-year, the cost of doing business is undeniably higher because of wage rates, and I don't think those will abate. But we might get a little bit of a tailwind here on the fuel aspect and see how that maps itself out over the next couple of quarters.

我們預計，如果 3 月是一個指標，那將開始有所下降，這可能對我們有利。 Will 提到我們已經採取了一些與此相關的行動。不過，在勞動力方面，我認為它很粘。當我們想到這些運營商時，我們都面臨著更高的工資。與去年同期相比，不可否認的是，由於工資率，經營成本更高，而且我認為這些成本不會降低。但我們可能會在燃料方面得到一點順風，並看看在接下來的幾個季度中它是如何映射出來的。

And the next question is from Liz Suzuki from Bank of America.

下一個問題來自美國銀行的 Liz Suzuki。

Just -- I guess this is more of a theoretical question about acquisition opportunities. I mean historically, you've acquired businesses that are performing well that can bring synergies to your core operations in both Industrial and Automotive. But if there were underperforming competitors in either a category where you saw an opportunity to bring GPC's distribution capabilities to that business. Would that ever we consider it as an acquisition target?

只是 - 我想這更多是關於收購機會的理論問題。我的意思是，從歷史上看，您收購的業務表現良好，可以為您在工業和汽車領域的核心業務帶來協同效應。但是，如果在任一類別中存在表現不佳的競爭對手，您就會看到將 GPC 的分銷能力引入該業務的機會。我們是否會將其視為收購目標？

Yes, Liz, it's a great question, and the answer is yes. We'll do deals that create value that align with our strategy regardless of how they're performing. And I would say our capabilities in this part of the business positions us pretty well as the environment gets tougher. We're going to be really disciplined on whether they're a good business or a challenged business. But if we can create value and it makes sense for our strategy, I think the power of our balance sheet and our liquidity position is that's exactly the type of environment that we want to operate in, so we can leverage our scale.

是的，Liz，這是一個很好的問題，答案是肯定的。我們將進行能夠創造與我們的戰略相一致的價值的交易，無論它們的表現如何。而且我會說，隨著環境變得更加艱難，我們在這部分業務中的能力使我們處於非常有利的地位。無論他們是好企業還是有挑戰的企業，我們都會嚴格遵守紀律。但如果我們能夠創造價值並且這對我們的戰略有意義，我認為我們資產負債表和流動性狀況的力量正是我們想要運營的環境類型，因此我們可以利用我們的規模。

Got you. And then just on the guidance for the year, the interest expense came down a little bit. So it sounds like there are no near-term plans to take on additional leverage, but just wanted to get your thoughts about that and on your current debt level and any near-term plans for cash outside of the opportunities that you laid out already in your -- in the slides.

明白了然後就今年的指導而言，利息支出略有下降。所以聽起來沒有近期計劃增加槓桿，但只是想了解一下您對此的想法以及您當前的債務水平以及您已經制定的機會之外的任何近期現金計劃你的——在幻燈片中。

Liz, it's Bert. Look, there's nothing in the near term that has really changed or really for the balance of the year in terms of how we're thinking. Interest expense has come down a bit. We've had a little less need to borrow against our revolver intra-month, which has been a bit of a benefit to us and intentional. And then when we think about the uses of cash and our capital allocation for the year, it's still pretty balanced. We don't have anything different than what we shared at Investor Day and no different plans.

麗茲，是伯特。看，就我們的想法而言，短期內沒有任何真正改變或真正改變今年餘下時間的事情。利息支出有所下降。我們在月內借用我們的左輪手槍的需求有所減少，這對我們來說是有好處的，也是有意為之的。然後當我們考慮現金的使用和我們今年的資本配置時，它仍然非常平衡。我們與投資者日分享的內容沒有任何不同，也沒有不同的計劃。

The only thing that's on the horizon is we've got a debt maturity at the end of the year. And obviously, we'll want to be thinking about the environment that the capital market brings to us as we get closer to that and how we think about refinancing or paying back or some of the various options we might have. So again, just being really disciplined as we always are being faithful to our 4 priorities on capital allocation and no surprises for you guys.

唯一即將發生的事情是我們的債務將在年底到期。顯然，隨著我們越來越接近資本市場，我們將要考慮資本市場給我們帶來的環境，以及我們如何考慮再融資或償還或我們可能擁有的各種選擇。因此，再次強調，我們要真正遵守紀律，因為我們始終忠於我們在資本配置方面的 4 個優先事項，這對你們來說並不奇怪。

The next question is from Greg Melich from Evercore ISI.

下一個問題來自 Evercore ISI 的 Greg Melich。

I have a follow-up on auto and then turn to industrial. I just want to make sure on the auto margin, it looks like the decline was pretty much all in the U.S. business. Is it fair to say that both Europe and Asia Pacific segment auto margins were up year-on-year?

我對汽車進行了跟進，然後轉向工業。我只想確定汽車利潤率，看起來下降幾乎全部發生在美國業務中。可以說歐洲和亞太地區的汽車利潤率都同比增長嗎？

That's fair to say.

可以這麼說。

Got it. And then the -- on the industrial side, how sustainable is the expansion rate, but also just the level that you've gotten to in industrial? Is something changed there about the fundamental profitability of that side of the business?

知道了。然後 - 在工業方面，擴張速度的可持續性如何，但也只是你在工業方面達到的水平？這方面業務的基本盈利能力是否發生了變化？

Greg, this is Bert. I wouldn't say there's anything fundamental that's changed other than just continued strong momentum and building on the actions in that business over the last couple of years. You build on industrial team that -- and the Motion team that is executing at a very high level, their core business, a stellar integration of KDG and how we've achieved synergy which was transformational in driving additional size and scale and creating opportunity.

格雷格，這是伯特。我不會說除了持續強勁的勢頭和過去幾年在該業務中的行動之外，沒有任何根本性的變化。你建立在工業團隊的基礎上 - 以及在非常高水平上執行的 Motion 團隊，他們的核心業務，KDG 的出色整合以及我們如何實現協同作用，這在推動額外規模和規模和創造機會方面具有變革性。

That combination has allowed us to continue to improve margin in that business. As we shared at Investor Day, we're looking at that business being at a 12% level. And so we're marching towards that as a target. And obviously, this quarter gave you a glimpse of our progression in that regard.

這種結合使我們能夠繼續提高該業務的利潤率。正如我們在投資者日分享的那樣，我們認為該業務處於 12% 的水平。因此，我們正在朝著這個目標邁進。顯然，本季度讓您瞥見了我們在這方面的進展。

And I think we're on the right track to hit that level of profitability as we shared at Investor Day based on what we see right now and what we see for the next several quarters.

而且我認為，根據我們現在和未來幾個季度的情況，我們正朝著我們在投資者日分享的盈利水平邁進。

Greg, this is Paul. I would just cap off both those comments. When you think about the 2 businesses, auto and industrial, and we've talked about this a good bit in the past. We talked about it during Investor Day. If you go back a few years, we laid out our multiyear diversification strategy. And I would tell you, this is a classic quarter where that strategy is really paying dividends.

格雷格，這是保羅。我只想結束這兩個評論。當你想到汽車和工業這兩個行業時，我們過去已經談過很多。我們在投資者日討論過它。如果你回到幾年前，我們制定了多年多元化戰略。我會告訴你，這是一個經典的季度，該戰略真正帶來了紅利。

And it's -- and hats off to our teams, our industrial team, our international teams all really delivered in Q1. We could not be more proud of them.

它是——向我們的團隊、我們的工業團隊、我們的國際團隊致敬，他們都在第一季度真正交付了。我們為他們感到無比自豪。

Next question is from Seth Basham from Wedbush Securities.

下一個問題來自 Wedbush Securities 的 Seth Basham。

My first question is just on the weather effects going forward. Given the gyrations you saw through the winter, do you expect the weather to be a drag on sales through the balance of the year?

我的第一個問題只是關於未來的天氣影響。考慮到整個冬天的波動，您認為天氣會拖累全年的銷售嗎？

Seth, it's Will. Listen, I don't -- I'm not in the -- I don't think any of us are in the business of forecasting the weather as we move forward. So no, we haven't modeled in any of our forward commentary or outlook impact from weather.

賽斯，是威爾。聽著，我不 - 我不在 - 我不認為我們中的任何人在我們前進的過程中都在預測天氣。所以不，我們沒有對天氣的任何前瞻性評論或前景影響進行建模。

Seth, I've been at this a number of years. It was a crazy, crazy quarter. When I look back at our call in January, we were sitting here in Atlanta, and it was 80 degrees, yet many parts of the country were shut down with incredible snowfall. At this point in time, all we're going to do is we're going to focus on what we can control. And our businesses are all performing at a really high level. We expect that to continue regardless of what mother nature has in store for us in the balance of the year.

賽斯，我已經在這方面工作了很多年。這是一個瘋狂的季度。當我回顧我們 1 月份的電話會議時，我們坐在亞特蘭大，當時氣溫是 80 度，但該國的許多地方都因難以置信的降雪而關閉。在這個時候，我們要做的就是專注於我們可以控制的事情。我們的業務都處於非常高的水平。我們預計，無論大自然在今年餘下的時間里為我們準備了什麼，這種情況都會繼續下去。

Understood. And in terms of the 100 basis points drag from weather in the quarter, was it more pronounced on the DIY side than the do-it-for-me side?

明白了。就本季度天氣造成的 100 個基點拖累而言，DIY 方面是否比 DIY 方面更明顯？

Yes, I don't think we can make a distinction between DIY and DIFM from a weather perspective. I mean, 80% of our business is do-it-for-me. So -- but there's no distinction between the 2.

是的，我不認為我們可以從天氣的角度區分 DIY 和 DIFM。我的意思是，我們 80% 的業務都是為我做的。所以——但兩者之間沒有區別。

And our final question for today will come from Daniel Imbro from Stephens Inc.

我們今天的最後一個問題將來自 Stephens Inc. 的 Daniel Imbro。

I wanted to start as a follow-up on the industrial margin kind of outlook you guys provided. Bert talked about kind of 12% guidepost. If I look at 1Q, really strong expansion, but the growth was up double digits. Obviously, the guide is calling for growth to slow to get to that 5% midpoint for the year. It's your expectation just to make sure we understood that correctly, margins would still be up year-over-year for the coming quarters, just maybe up less than the first quarter? Or how would you think about the pace of industrial expansion as that headline growth flows through the year?

我想從你們提供的工業利潤率前景的後續行動開始。伯特談到了 12% 的路標。如果我看第一季度，擴張真的很強勁，但增長率是兩位數。顯然，該指南呼籲增長放緩以達到今年 5% 的中點。您的期望只是為了確保我們理解正確，未來幾個季度的利潤率仍將同比增長，只是可能低於第一季度？或者您如何看待全年總體增長的工業擴張步伐？

Well, I don't want to get into giving quarterly guidance on the Industrial segment, but I'll just talk about the full year and tell you that when you think about the industrial business, we've got, as we -- I think we've said repeatedly high single-digit top line growth model for the first half.

好吧，我不想就工業部門給出季度指導，但我只想談談全年並告訴你，當你考慮工業業務時，我們有，因為我們 - 我認為我們已經多次說過上半年的高個位數收入增長模式。

That moderates down to low single digits in the second half based on our expectation of economic conditions, which could obviously change. Even with all of that, even with a low single-digit outlook for the second half, we're expecting the segment to improve its margin for the full year. Will it be at the same rate as Q1.

根據我們對經濟狀況的預期，這在下半年會放緩至較低的個位數，而經濟狀況可能會發生明顯變化。即便如此，即使下半年的個位數前景較低，我們仍預計該部門全年的利潤率將有所提高。它會和第一季度一樣嗎？

No. We're not modeling that, and you know that from our full year guidance. But in a lower growth moderated environment in the second half that business will still perform well on a margin basis, and we expect that margin to expand for the full year, which is why we're looking at overall GPC margin expansion for the full year as well.

不，我們不是在建模，你從我們的全年指導中知道這一點。但在下半年增長放緩的環境下，該業務的利潤率仍將表現良好，我們預計全年利潤率將擴大，這就是我們關注全年 GPC 利潤率整體擴張的原因以及。

Great. I appreciate that color. And then to follow up on the automotive margin, not to beat a dead horse, but you mentioned the wage investment and kind of I think you mentioned it in the question, the cost of doing business has gone up. I guess, what inning are we in, in terms of those wage investments as and when do we begin to lap these and we could return to levering that wage line on a low to mid-single-digit type comp? Just what's that kind of outlook look like on those investments you're planning on making in the business?

偉大的。我很欣賞那種顏色。然後跟進汽車利潤率，而不是一匹死馬，但你提到了工資投資，我想你在問題中提到過，做生意的成本已經上升了。我想，就這些工資投資而言，我們處於什麼局，我們什麼時候開始超越這些，我們可以回到利用低到中個位數類型補償的工資線？您計劃在業務中進行的那些投資的前景如何？

Well, look, I'll just tell you that we spent the last 12 months or so moving down the P&L in terms of inflation impact, starting with the top line and cost of goods sold, I think all businesses, so I don't want to put us in some unique camp. I think all businesses are starting to feel the impact of inflation in the heart of the P&L. And that's now moving into freight lines, SG&A, personnel costs and some of those things.

好吧，看，我只想告訴你，我們在過去 12 個月左右的時間裡在通貨膨脹影響方面降低了損益表，從頂線和銷售商品成本開始，我認為所有企業，所以我不想把我們放在一些獨特的營地。我認為所有企業都開始感受到通貨膨脹對損益表的影響。現在，這已經轉移到貨運線路、SG&A、人員成本和其中一些方面。

To call the inning on that is really tough. My dad was a baseball coach, and I like to say that I'm baseball ready, but the call to inning on that 1 is a little difficult. I just go back to the point that in this highly inflationary environment, there's no question the floor has been raised on the cost of doing business. It's not just here in the U.S., it's around the world. And the best indicator for that is what all companies are facing right now with inflation on wages.

在此基礎上宣布這一局真的很艱難。我爸爸是一名棒球教練，我想說我已經做好了打棒球的準備，但是在這 1 局上的決定有點困難。我只是回到這一點，在這種高度通貨膨脹的環境中，毫無疑問，經營成本的底線已經提高了。它不僅在美國這裡，而且在世界各地。最好的指標是所有公司現在都面臨著工資通脹。

I don't want to give you a precise estimate on a range of leverage. I think historically, the company has been talking about a 3 to 4. If it's been 3 to 4, it's probably floating closer to the higher end of that range. But the thing we're focused on, and I think it underscores and emphasize the importance of doubling down on these investments and initiatives we're making in productivity and efficiency, modernizing our operations and the things you heard about at Investor Day will help us.

我不想給你一個槓桿範圍的精確估計。我認為從歷史上看，公司一直在談論 3 到 4。如果它是 3 到 4，它可能會接近該範圍的高端。但我們關注的事情，我認為它強調並強調了加倍投入我們在生產力和效率方面進行的這些投資和舉措的重要性，使我們的運營現代化以及您在投資者日聽到的事情將幫助我們.

And then we're always going to be faithful to driving leverage and reducing costs where we can. And you saw a great example of that in the business this quarter with the leverage we gained in the Motion business and the International Automotive businesses -- so I think that's a great data point on how we're thinking about modeling this going forward. And obviously, my guidance contemplates that as to our 2025 targets.

然後我們將始終忠實地推動槓桿作用並儘可能降低成本。你在本季度的業務中看到了一個很好的例子，我們在 Motion 業務和國際汽車業務中獲得了槓桿作用——所以我認為這是一個很好的數據點，說明我們如何考慮對未來進行建模。顯然，我的指導考慮了我們 2025 年的目標。

And ladies and gentlemen, this concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

女士們，先生們，我們的問答環節到此結束。我想將會議轉回管理層聽取任何閉幕詞。

Yes. Thanks, Chad. We appreciate it. And listen, we appreciate all the questions and all of you joining us this morning. As I hope you've heard, we're incredibly pleased with the strong start to the year, and we could not be more proud of the great work being done by all of our GPC teammates around the world.

是的。謝謝，乍得。我們很感激。聽著，我們感謝所有的問題，感謝你們今天早上加入我們。正如我希望您聽到的那樣，我們對今年的強勁開局感到非常高興，我們為全球所有 GPC 隊友所做的出色工作感到無比自豪。

We're -- we continue to be excited with the momentum this business is generating. So I hope you feel that and heard that today in our in our comments. So listen, all of you have a great day wherever you are, and thanks for your interest in GPC.

我們 - 我們繼續對這項業務產生的勢頭感到興奮。所以我希望你今天在我們的評論中感受到並聽到了這一點。所以聽著，無論您身在何處，所有人都會度過愉快的一天，感謝您對 GPC 的關注。

And thank you, sir. The conference has now rooted. Thank you for attending today's presentation. You may now disconnect.

謝謝你，先生。會議現已紮根。感謝您參加今天的演講。您現在可以斷開連接。