Garrett Motion Inc (GTX) 2024 Q1 法說會逐字稿

Good morning, and hello. My name is Debbie, and I will be your operator this morning. I would like to welcome everyone to the Garrett Motion first-quarter 2024 financial results conference call. This call is being recorded and a replay will be available later today.

早上好，你好。我叫黛比，今天早上我將擔任您的接線生。歡迎大家參加 Garrett Motion 2024 年第一季財務業績電話會議。此通話正在錄音，今天晚些時候將提供重播。

After the company's presentation, there will be a Q&A session, and I would like to hand the call now over to Eric Berg, Garrett's Head of Investor Relations. Please go ahead.

公司介紹結束後，將舉行問答環節，我現在將電話轉給蓋瑞特投資者關係主管埃里克·伯格(Eric Berg)。請繼續。

Thank you, Debbie. Good day, and welcome, everyone. Thank you for joining the Garrett Motion first-quarter 2024 financial results conference call.

謝謝你，黛比。美好的一天，歡迎大家。感謝您參加 Garrett Motion 2024 年第一季財務業績電話會議。

Before we begin, I would like to mention that today's presentation and earnings press release are available on the IR section of Garrett Motion website at investors.garrettmotion.com. There you will find a link to our SEC filings along with other important information about our company.

在開始之前，我想提一下，今天的簡報和收益新聞稿可在 Garrett Motion 網站 Investors.garrettmotion.com 的 IR 部分取得。在那裡您可以找到我們向 SEC 提交的文件的連結以及有關我們公司的其他重要資訊。

Turning to slide 2, we note that the presentation contains forward-looking statements within the Securities and Exchange Act. We encourage you to read these risk factors contained in our filings with the Securities and Exchange Act, and become aware of the risks and uncertainties in our business, and understand that forward-looking statements are only estimates of future performance and should be taken as such.

轉向投影片 2，我們注意到該簡報包含《證券交易法》中的前瞻性陳述。我們鼓勵您閱讀我們向《證券交易法》提交的文件中包含的這些風險因素，並了解我們業務中的風險和不確定性，並了解前瞻性陳述僅是對未來業績的估計，應如此對待。

The forward-looking statements represent the management's expectations only as of today, and the company disclaims any obligation to update them. Today's presentation also includes non-GAAP measures to describe how we manage and operate our business.

這些前瞻性陳述僅代表管理階層截至目前的預期，本公司不承擔任何更新這些前瞻性陳述的義務。今天的演示還包括非公認會計準則衡量標準，以描述我們如何管理和經營我們的業務。

We reconcile each of these measures to the most direct comparable GAAP measure, and you are encouraged to examine those reconciliations in the appendix to the press release and the slide presentation. Also in today's presentation and comments, we may refer to light vehicle diesel and light vehicle gasoline products simply as diesel and gasoline only.

我們將這些衡量標準與最直接可比較的公認會計原則衡量標準進行了調節，我們鼓勵您在新聞稿和幻燈片簡報的附錄中檢查這些調節。同樣在今天的演示和評論中，我們可能將輕型車用柴油和輕型車用汽油產品簡稱為柴油和汽油。

With us today is Olivier Rabiller, Garrett's President and Chief Executive Officer; and Sean Deason, Garrett's Senior Vice President and Chief Financial Officer. I will now hand the call over to Olivier.

今天與我們在一起的是 Garrett 總裁兼執行長 Olivier Rabiller；以及蓋瑞特資深副總裁兼財務長 Sean Deason。我現在將電話轉交給奧利維爾。

Thank you, Eric, and thanks, everyone, for joining Garrett's first-quarter 2024 earnings conference call. I will begin today's remarks on Slide 3. First, I would like to thank the Garrett team for their drive, energy, and focus to deliver another great quarter.

謝謝艾瑞克，也謝謝大家參加加勒特的 2024 年第一季財報電話會議。我將從幻燈片 3 開始今天的演講。首先，我要感謝蓋勒特團隊的幹勁、活力和專注力，讓我們又創造了一個偉大的季度。

I am pleased to report today that Garrett delivered a solid performance in Q1, achieving net sales of $915 million and adjusted EBITDA of $151 million. We ended had the strong adjusted EBITDA margin of 16.5%, up 120 basis points from last quarter and adjusted free cash flow came in at $68 million, in line with our outlook and expectations.

我今天很高興地向大家報告，蓋瑞特在第一季取得了穩健的業績，實現淨銷售額 9.15 億美元，調整後 EBITDA 為 1.51 億美元。我們最終的調整後 EBITDA 利潤率為 16.5%，比上季度上升 120 個基點，調整後自由現金流為 6,800 萬美元，符合我們的前景和預期。

Once again, we leverage our flexible cost structure and cash generation capability to enable us to adapt to industry softness mainly in Europe. We expect the situation to improve during the second half of the year, and Sean will take you through the financials in more details later in the presentation.

我們再次利用靈活的成本結構和現金產生能力，使我們能夠適應主要在歐洲的產業疲軟。我們預計情況將在下半年有所改善，肖恩將在稍後的演示中向您詳細介紹財務狀況。

The performance we achieved in the quarter enabled us to make some very significant progress on our capital allocation priorities. First, we previously stated that we would continue to de-lever. And on April 10, we made an early debt repayment of $100 million.

我們在本季度取得的業績使我們在資本配置優先事項上取得了一些非常重大的進展。首先，我們先前表示將繼續去槓桿。4 月 10 日，我們提前償還了 1 億美元的債務。

Additionally, we continue to focus on returning value to our shareholders through our $350 million share repurchase program. And during the quarter, we repurchased $109 million of common stock. Finally, on April 3, we divested an equity interest in a non-core and consolidated braking business, which resulted in a cash inflow of $46 million.

此外，我們繼續致力於透過 3.5 億美元的股票回購計畫為股東回報價值。在本季度，我們回購了 1.09 億美元的普通股。最後，我們在 4 月 3 日剝離了非核心綜合煞車業務的股權，帶來了 4,600 萬美元的現金流入。

Turning now to slide 4. We continue to innovate and bring new differentiated turbo offerings to our customers across all regions and all verticals. This includes not only additional wins and launches on hybrid vehicles, but also natural gas application for heavy trucks, demonstrating our capabilities to support alternative fuels with our turbo technologies.

現在轉到投影片 4。我們不斷創新，為所有地區和所有垂直行業的客戶帶來新的差異化渦輪產品。這不僅包括混合動力車的額外勝利和推出，還包括重型卡車的天然氣應用，展示了我們透過渦輪技術支援替代燃料的能力。

During the first quarter, we also secured two new awards for our large industrial turbos. This is part of the plan we unveiled during our October technology and Investor Day. Those large industrial turbos are key to the power generation equipment required by the global expansion of data center infrastructure, a new industry for us.

在第一季度，我們的大型工業渦輪機也獲得了兩個新獎項。這是我們在十月科技和投資者日期間公佈的計劃的一部分。這些大型工業渦輪機是資料中心基礎設施全球擴張所需的發電設備的關鍵，而資料中心基礎設施對我們來說是一個新產業。

As we continue to advance our zero-emission solutions. Our success continues across all three new offerings -- fuel cell compressors, E-Powertrain and E-Cooling compressors. Garrett has already the broadest portfolio of high-speed fuel cell compressor applications.

隨著我們繼續推進我們的零排放解決方案。我們在所有三款新產品中繼續取得成功——燃料電池壓縮機、電子動力總成和電子冷卻壓縮機。蓋瑞特已經擁有最廣泛的高速燃料電池壓縮機應用產品組合。

In Q1, we added two additional series production awards for our high-speed fuel-cell compressor. In addition, a few weeks back, we delivered and installed on the prototype, our first breakthrough high-speed E-Powertrain traction motor at a leading global OEM.

在第一季度，我們為高速燃料電池壓縮機增加了兩個額外的系列生產獎項。此外，幾週前，我們向一家全球領先的 OEM 交付並安裝了我們的首款突破性高速電動動力總成牽引馬達。

This is a key milestone for the validation of this differentiated technology. In fact, we have been able to move from concept to drawings to product being tested on the vehicle at the customer in record time.

這是驗證這項差異化技術的一個重要里程碑。事實上，我們已經能夠在創紀錄的時間內從概念到圖紙，再到在客戶的車輛上進行測試的產品。

At the same time, we are also delivering our high-power lightweight centrifugal E-Cooling compressor to a range of customers for hardware performance testing of this revolutionary thermal management device. With this product, we are looking to enhance both fast charging and high-load performance of battery electric vehicles.

同時，我們也向一系列客戶提供我們的高功率輕型離心式E-Cooling壓縮機，用於對這款革命性的熱管理設備進行硬體性能測試。透過該產品，我們希望增強純電動車的快速充電和高負載性能。

With all of that, I continue to be encouraged by the speed at which we progress, and the interest we are generating with our customers for all these zero-emission technologies.

儘管如此，我仍然對我們進步的速度以及我們與客戶對所有這些零排放技術的興趣感到鼓舞。

Turning now to slide 5, and before Sean gets into the financials, I want to highlight the ways in which we are well positioned for success. We are the number one player in a technology-driven industry, and plan to keep expanding our turbo offerings, not only to serve the expected growth in hybrids, but also to develop our position for larger turbos for industrial applications.

現在轉到投影片 5，在 Sean 討論財務狀況之前，我想強調我們為成功做好準備的方式。我們是技術驅動型產業的第一大參與者，並計劃繼續擴大我們的渦輪機產品範圍，不僅是為了滿足混合動力汽車的預期成長，也是為了發展我們在工業應用大型渦輪機方面的地位。

At Garrett, we continue to enhance our operational framework that is highly cash-generative through cycles, and that allows us to invest in new technologies, while at the same time, delivering and returning cash to shareholders through our share repurchase program.

在蓋瑞特，我們不斷增強我們的營運框架，該框架在整個週期中具有高度現金產生能力，使我們能夠投資新技術，同時透過我們的股票回購計畫向股東交付和返還現金。

Our priority remains to identify and focus on customers' unmet needs where we can leverage our innovation capabilities to develop differentiated and highly efficient solutions at scale.

我們的首要任務仍然是識別並專注於客戶未滿足的需求，我們可以利用我們的創新能力大規模開發差異化且高效的解決方案。

All the above is made possible by what I consider to be one of the best teams in the industry. Being able to, at the same time, deliver strong operational performance and push the boundaries of innovation.

以上所有這些都是由我認為業內最好的團隊之一實現的。同時能夠提供強大的營運績效並突破創新的界限。

I will now turn the call over to Sean to provide more insights into our financial results and outlook.

我現在將把電話轉給肖恩，以提供有關我們的財務表現和前景的更多見解。

Thanks, Olivier, and welcome, everyone. I'll begin my remarks on slide 6.

謝謝奧利維爾，歡迎大家。我將從幻燈片 6 開始我的演講。

Overall, we delivered solid Q1 results in line with our full year outlook in an industry that is beginning to see deflation on some commodities, along with demand softness, primarily in Europe. We expect to see this trend continue into the second quarter, and anticipate a stronger second half in 2024.

總體而言，我們在第一季取得了穩健的業績，符合我們的全年前景，該行業開始出現一些商品通貨緊縮以及需求疲軟（主要是在歐洲）。我們預計這一趨勢將持續到第二季​​度，並預計 2024 年下半年將更加強勁。

Starting with reported net sales on the upper left-hand graph, our net sales are trending down due to lower inflation pass-through and softer global industry trends, as just mentioned.

從左上圖報告的淨銷售額開始，正如剛才提到的，由於通膨傳導率較低和全球行業趨勢疲軟，我們的淨銷售額呈下降趨勢。

Moving to the upper right hand side of the page, we delivered a strong adjusted EBITDA margin by flexing our cost structure, and continuing to perform operationall,y as we navigated mix headwinds and a lower demand environment.

轉到頁面的右上角，我們透過調整成本結構並在克服混合逆風和需求較低的環境時繼續執行運營，實現了強勁的調整後 EBITDA 利潤率。

On the bottom left graph, we show that Garrett generated a strong adjusted free cash flow, again in line with full-year outlook and in a quarter that normally is seasonally weaker.

在左下圖上，我們顯示加勒特產生了強勁的調整後自由現金流，這再次與全年前景一致，並且在通常季節性疲軟的季度中。

Turning now to slide 7, Q1 net sales were down 6% on a GAAP basis, and down 5% on a constant currency basis, reflecting a decrease of $55 million over Q1 of 2023, driven by continued industry softness in gasoline, diesel, and commercial vehicles, primarily in Europe.

現在轉向投影片 7，由於汽油、柴油和汽油等行業持續疲軟，第一季淨銷售額按 GAAP 基準計算下降 6%，按固定匯率計算下降 5%，較 2023 年第一季減少 5,500 萬美元。商用車，主要在歐洲。

This was partially offset by stronger aftermarket, as well as lower inflation pass-through across all verticals. Lower industry volumes in Q1 were also affected by global supply chain disruptions that have impacted production at many of our OEM customers.

這被更強勁的售後市場以及所有垂直領域較低的通膨傳導所部分抵消。第一季產業銷售下降也受到全球供應鏈中斷的影響，這些中斷影響了我們許多 OEM 客戶的生產。

Gasoline products were down 2% at constant currency, decreasing $10 million in sales, and comprised 42% of reported net sales, flat from last year. Diesel products decreased 8% at constant currency, a decrease of $21 million in sales and comprised 26% of reported net sales, down from 27% of reported net sales last year.

以固定匯率計算，汽油產品下降 2%，銷售額減少 1,000 萬美元，佔報告淨銷售額的 42%，與去年持平。以固定匯率計算，柴油產品下降 8%，銷售額減少 2,100 萬美元，佔報告淨銷售額的 26%，低於去年報告淨銷售額的 27%。

Commercial vehicle sales decreased 11% at constant currency, or $19 million and represented 18% of reported net sales, again down from 19% last year. Our aftermarket business increased 2% at constant currency, or $2 million, and comprises 12% of reported net sales, up from 11% in Q1 of 2023. And finally, we saw an unfavorable impact of $8 million due to foreign exchange on a year over year basis.

以固定匯率計算，商用車銷售額下降 11%，即 1,900 萬美元，佔報告淨銷售額的 18%，再次低於去年的 19%。我們的售後市場業務以固定匯率計算成長了 2%，即 200 萬美元，佔報告淨銷售額的 12%，高於 2023 年第一季的 11%。最後，我們看到外匯帶來的年比不利影響為 800 萬美元。

Moving now to slide 8, on top of the page, we show our Q1 adjusted EBITDA bridge compared with the same period last year. In Q1, we delivered an adjusted EBITDA of $151 million, representing a $17 million decrease over the same period last year.

現在轉到頁面頂部的幻燈片 8，我們顯示了與去年同期相比第一季調整後的 EBITDA 橋。第一季度，我們實現調整後 EBITDA 為 1.51 億美元，比去年同期減少 1,700 萬美元。

This decrease was due to volume declines, and unfavorable mix, primarily from a decrease in sales of diesel and commercial vehicles in Europe, impacting adjusted EBITDA by approximately $23 million.

這一下降是由於銷量下降和不利的組合造成的，主要是由於歐洲柴油和商用車銷量的下降，影響調整後的 EBITDA 約 2300 萬美元。

Overall operating performance was a net positive of $13 million as we continued to successfully pass through inflation and generate productivity while dedicating over 50% of total R&D expenditures to zero emissions technology. By leveraging our flexible cost structure, we were able to deliver a strong 16.5% adjusted EBITDA margin in this challenging macro environment.

我們繼續成功渡過通貨膨脹並提高生產力，同時將總研發支出的 50% 以上用於零排放技術，因此整體營運績效淨值為 1,300 萬美元。透過利用我們靈活的成本結構，我們能夠在這個充滿挑戰的宏觀環境中實現 16.5% 的調整後 EBITDA 利潤率。

Turning now to slide 9, we show adjusted EBITDA to adjusted free cash flow bridge for Q1 2024, Garrett continued to deliver strong adjusted free cash flow of $68 million, in line with our full year outlook. This was driven by a use of working capital of $9 million, primarily due to inventory seasonality, partially offset by strong collections.

現在轉向幻燈片 9，我們顯示了 2024 年第一季度調整後 EBITDA 與調整後自由現金流橋樑，蓋瑞特繼續提供 6800 萬美元的強勁調整後自由現金流，這與我們的全年展望一致。這是由 900 萬美元營運資金的使用所推動的，主要是由於庫存季節性，但部分被強勁的收款所抵消。

And capital expenditures came in at $32 million in the quarter, primarily due to timing, but also in line with full year expectations. And finally, cash taxes and cash interest interest were also consistent with our outlook.

本季資本支出為 3,200 萬美元，主要是由於時間安排，但也符合全年預期。最後，現金稅和現金利息也與我們的預期一致。

Turning to slide 10, as Olivier mentioned earlier, we continued to generate cash and execute on our capital allocation priorities. We ended the quarter with a strong liquidity position of $766 million, comprised of $570 million of undrawn revolving credit facility capacity, and $196 million of unrestricted cash.

轉向幻燈片 10，正如奧利維爾之前提到的，我們繼續產生現金並執行我們的資本配置優先事項。截至本季末，我們擁有 7.66 億美元的強勁流動性頭寸，其中包括 5.7 億美元的未提取循環信貸額度和 1.96 億美元的非限制性現金。

Our cash generation enabled us to return significant value to our shareholders in the quarter, as we repurchased $109 million of common stock under our $350 million stock repurchase program. Additionally, in the first two weeks of April, just after the end of Q1, we completed the divestiture of an equity interest in an unconsolidated joint venture, resulting in the receipt of $46 million of proceeds, and we made an early debt repayment of $100 million on our term loan, continuing to deleverage the company.

我們的現金產生使我們能夠在本季度向股東回報可觀的價值，因為我們根據 3.5 億美元的股票回購計劃回購了 1.09 億美元的普通股。此外，在 4 月的前兩週，即第一季結束後，我們完成了對一家未合併合資企業股權的剝離，收到了 4600 萬美元的收益，並提前償還了 100 美元的債務百萬美元的定期貸款，繼續為公司去槓桿化。

We are also evaluating various debt refinancing strategies for our capital structure to extend debt maturity and lower interest expense given current market conditions.

我們也正在評估我們資本結構的各種債務再融資策略，以在當前市場條件下延長債務期限並降低利息支出。

Moving to slide 11, on this slide we are reaffirming our 2024 outlook communicated on our last earnings call. All ranges have remained the same. And as mentioned earlier, we expect a stronger second half of the year.

前往投影片 11，在這張投影片上，我們重申了上次財報電話會議上傳達的 2024 年展望。所有範圍均保持不變。正如前面提到的，我們預計今年下半年會更加強勁。

The midpoints for adjusted EBITDA margin, and adjusted free cash flow, continue to be $620 million, 16% and $375 million, respectively. We continue to expect to dedicate approximately 60% of our research and development spending in 2024 to 0 emissions technologies, with a total R&D representing approximately 4.5% of sales as we continue to see increasing customer interest across key regions and verticals for our zero emission technologies.

調整後 EBITDA 利潤率和調整後自由現金流的中點仍分別為 6.2 億美元、16% 和 3.75 億美元。我們仍然預計到2024 年將約60% 的研發支出用於零排放技術，研發總額約佔銷售額的4.5%，因為我們繼續看到關鍵地區和垂直行業的客戶對我們的零排放技術的興趣不斷增加。

As we did in the first quarter in 2024, we plan to continue to deliver productivity, pass through inflation, and flex our variable cost structure to adapt to a dynamic production environment.

正如我們在 2024 年第一季所做的那樣，我們計劃繼續提高生產力，度過通貨膨脹，並調整我們的可變成本結構以適應動態的生產環境。

And with that, I will now turn the call back to Olivier to conclude.

現在，我將把電話轉回給奧利維爾結束。

Thank you, Sean. Turning to slide 12, it was a strong start of the year with a solid first quarter. We are delivering on returning value to our shareholders through share repurchasing, divesting an interest in a non-core business, and repayment of debt through our solid cash generation.

謝謝你，肖恩。轉向幻燈片 12，這是今年的一個強勁開局，第一季表現強勁。我們透過股票回購、剝離非核心業務的權益以及透過穩定的現金產生償還債務來為股東帶來回報。

We are maintaining our leadership position in turbo with awards and launches across light vehicle, commercial vehicle, and industrial offerings. Additionally, momentum continues for our zero-emission technologies.

我們在輕型汽車、商用車和工業產品領域屢獲殊榮並發布了渦輪增壓產品，從而保持了我們在渦輪增壓領域的領導地位。此外，我們的零排放技術的勢頭仍在繼續。

With the progress we have seen, I am pleased to share that we are on target to achieve our target of $1 billion of annual sales of our zero-emission vehicle technology by 2030. And finally, given our solid performance this quarter, we are reaffirming our 2024 full year outlook.

隨著我們所取得的進展，我很高興地告訴大家，我們的目標是到 2030 年實現零排放汽車技術年銷售額 10 億美元。最後，鑑於我們本季的穩健表現，我們重申 2024 年全年展望。

Thank you for your time. And operator, we are now ready to begin the Q&A session.

感謝您的時間。接線員，我們現在準備開始問答環節。

We will now begin the Q&A session. (Operator Instructions).

我們現在開始問答環節。（操作員說明）。

First question comes from Hamed Khorsand with BWS Financial. Please go ahead.

第一個問題來自 BWS Financial 的 Hamed Khorsand。請繼續。

Hi, so first question I had was could you just talk a little bit more about the dynamics of the market right now? Is it's more of a OEMs waiting out on the inventory that they have, or are they just not ordering or they rechanging the ordering patterns of what they want?

你好，我的第一個問題是你能多談談現在市場的動態嗎？是原始設備製造商在等待他們擁有的庫存，還是他們只是不訂購，或者他們改變了他們想要的訂購模式？

Yes. Amed, that's a very good question. I think we have a lot of dynamics going on that are both regional and industry driven. So as an example, if I pick up the off-highway part of our commercial vehicle industry, we are notably impacted by the fact that the construction around the world is going down.

是的。艾梅德，這是一個非常好的問題。我認為我們正在發生很多由區域和產業驅動的動態。舉個例子，如果我選擇商用車產業的非公路部分，我們會受到世界各地建築施工下降的顯著影響。

Therefore, construction equipments are selling less. Agricultural equipment as well. And you know that I'm pointing in terms of customers. And therefore, as a consequence, the part of the off-highway business is down.

因此，建築設備的銷量較少。農業設備也是如此。你知道我指的是客戶。因此，非公路業務的部分因此而下降。

Now on the other part of the business in off highway, when I'm looking at the very big turbo and the very big engines, back to what we are sharing on those engines that are serving for data center backup power, the sales are booming. One is not compensating for the other.

現在，在非高速公路業務的另一部分，當我看到非常大的渦輪增壓器和非常大的發動機時，回到我們在為數據中心備用電源服務的那些發動機上分享的內容，銷售正在蓬勃發展。一者沒有補償另一者。

And today, it's not so much a problem of inventory in between the smaller prime of the end demand. For the rest, looking at the passenger vehicle industry, different dynamics around the world. In China, we see a slight recovery versus what we saw last year, but Japan and Korea are down significantly in Q1.

如今，在最終需求的較小時期之間，庫存問題不再是問題。至於其餘的，看看乘用車產業，世界各地的不同動態。在中國，我們看到與去年相比略有復甦，但日本和韓國在第一季大幅下降。

Europe is down in terms of production, and North America is up. Now when you play with the size of all the things, you see that we are we are facing different dynamics. Not always linked to some kind of stocking or destocking dynamics everywhere.

歐洲產量下降，北美產量上升。現在，當你研究所有事物的大小時，你會發現我們面臨著不同的動態。並不總是與各地的某種庫存或去庫存動態相關。

There is overall -- and take a little bit of our North America demand weakness that we are seeing and customers are adjusting to that. The rest of the commercial vehicle industry, we talked about off-highway, we could have a bit of the same on the on the on-highway side.

總體而言，我們看到北美需求疲軟，客戶正在適應這一點。商用車行業的其他部分，我們談到了非公路用車，我們可以在公路用車方面也有一些相同的內容。

On highway is quite weak in Europe, which is a place where we are quite strong on the on our on-highway business. It's a bit there in the US, but our presence is probably a relatively smaller than the one we're adding in Europe and China. And in China, it's recovering progressively. There is a shift going on from diesel to natural gas trucks.

歐洲的公路業務相當薄弱，而我們的公路業務在歐洲卻相當強大。在美國有一點，但我們的存在可能比我們在歐洲和中國增加的存在相對較小。而在中國，它正逐步復甦。卡車正在從柴油轉向天然氣。

But still it's a weak industry compared to what it was a few years back. So there are a lot of different dynamics. The key for us is to be able to have obviously a position that is broad as possible, so that when there is something doing well, we are compensating for customers or verticals that are doing less well, and adapt our our cost all the time.

但與幾年前相比，這個行業仍然很弱。所以有很多不同的動力。對我們來說，關鍵是能夠擁有盡可能廣泛的定位，這樣當有一些事情做得很好時，我們就會補償表現不佳的客戶或垂直行業，並始終調整我們的成本。

Hence the strength of Garrett to have this very strong variable cost percentage as part of the total cost, which enables us to react. You've seen what we did in Q1. We have a bit of a weakness on top line, but at the same time, we are compensating with a higher margin, as we could execute on everything we had in mind to preserve the earning capability of the company.

因此，蓋勒特的優勢在於，其變動成本佔總成本的比例非常高，這使我們能夠做出反應。您已經看到了我們在第一季所做的事情。我們在營收上有一些弱點，但同時，我們正在以更高的利潤來彌補，因為我們可以執行我們所想到的一切，以保持公司的獲利能力。

Okay.

好的。

And then, Shawn, could you just define, when you're talking about the second quarter being weak, is that on year over year basis? Are you thinking that there's more downward move sequentially?

然後，肖恩，當您談論第二季度的疲軟時，您能否定義一下，這是按年計算的嗎？您是否認為還會出現更多的連續下跌？

No. I mean, as you saw, we were sequentially up from Q4, that we expect to be. We expect Q2 to be slightly up, but certainly comp to the prior year will be down still. That's what I meant, Hamed. And the second half, we're improving sequentially again going forward.

不。我的意思是，正如您所看到的，我們的業績從第四季度開始連續上升，正如我們預期的那樣。我們預計第二季將略有上升，但與前一年相比肯定仍會下降。這就是我的意思，哈米德。下半場，我們再次取得連續進步。

Just to put things back in perspective, we knew Q1 and Q2 last year, we are really on a high note. So there is no real surprise there.

回顧一下，我們去年就知道第一季和第二季度，我們確實處於高調。所以這並不令人意外。

Right,

正確的，

Got it. And then the placement that you talked about for those are large powertrains in China for the data center, are those going to be sales recognizable this year or is that just purely an award for later?

知道了。然後，您談到的在中國的資料中心大型動力總成的佈局，這些產品今年的銷售是否會得到認可，還是純粹是以後的獎勵？

We are working at China's speed, which means that we could recognize a few of those by the end of the year.

我們正在以中國的速度開展工作，這意味著我們可以在今年年底之前認識到其中的一些。

Thank you.

謝謝。

Michael Ward, Freedom Capital.

邁克爾·沃德，自由資本。

Thanks. Good morning, everyone.

謝謝。大家，早安。

Two things. First on Germany. From the data that we see, production in Germany was lower than expected. But based on what your comments are about the second half, you kind of expected it. Was there some planned downtime or is any transition going on? And is that what is giving you confidence about second half and your outlook for the year?

兩件事情。首先是德國。從我們看到的數據來看，德國的產量低於預期。但根據你對下半場的評論，你有點預料到了。是否有計劃內的停機時間或正在進行任何過渡？這是否讓您對下半年和今年的前景充滿信心？

(multiple speakers) Sorry, Michael. Production in Germany?

（多個發言者）對不起，麥可。德國生產？

For Germany, yes, Germany was weak. It was lower than expected from the data that I see, but obviously --

對德國來說，是的，德國很弱。從我看到的數據來看，它低於預期，但顯然--

Yes, sure. Yes. I think we all have the same data when we look at IHS. It's true that Europe was a bit weaker than anticipated. Hence the reason why we've been a bit weaker on the top line that what we had in mind.

是的，當然。是的。我認為當我們查看 IHS 時，我們都會得到相同的數據。確實，歐洲比預期的弱一些。因此，我們的營收比我們預想的要弱一些。

And if we see a recovery the back end of the year, it's a recovery that's driven not only by Europe. It's also driven by some recovery that we would see in Asia, as an example. So it's really a mix, but it's true that Germany was it was down in production in Q1, and that that corresponds to the comment that we made that Europe was a driver of the weakness that we have seen overall.

如果我們在今年年底看到經濟復甦，那麼這種復甦不僅是由歐洲推動的。例如，這也是由我們在亞洲看到的一些復甦所推動的。所以這確實是一個混合體，但德國第一季的產量確實下降了，這與我們的評論相對應，即歐洲是我們整體看到的疲軟的推動因素。

Okay. And I'm curious on the conversations you've had with vehicle manufacturers as it relates to hybrids. You know, I think in Europe, the hybrids are already a strong portion of the market, and that's growing considerably in North America. Have you seen vehicle manufacturers getting back, and talking to you, or picking up the pace of the discussions as it relates to hybrids and some of your applications?

好的。我很好奇您與汽車製造商就混合動力汽車進行的對話。你知道，我認為在歐洲，混合動力車已經佔據了市場的很大一部分，並且在北美這一比例正在大幅增長。您是否看到汽車製造商回來與您交談，或者加快了與混合動力車和您的一些應用程式相關的討論的步伐？

Absolutely. And that's a very good point. First, we indeed see that in Europe there is obviously a strong position on hybrid. Not only in Europe, by the way, when you consider China. China, there is a very strong position there as well.

絕對地。這是一個很好的觀點。首先，我們確實看到歐洲在混合動力方面顯然佔據強勢地位。順便說一句，不僅僅是在歐洲，當你考慮到中國。中國在那裡也有非常強大的地位。

And in Europe, we've seen also something else coming in, but its very early. It's that diesel has not decreased to the extent we were expecting diesel to decrease this year. Meaning if you take some countries, like Germany, the end of the incentives on the deals have been pushing people to buy more diesel.

在歐洲，我們也看到了其他一些東西的出現，但還為時過早。而是柴油的下降幅度並沒有達到我們預期的今年柴油下降的程度。這意味著，如果以德國等一些國家為例，交易誘因的結束一直在促使人們購買更多柴油。

So it's too early for everyone to reschedule their production and everything. But we have seen a little bit of a better production results there than what we anticipated.

所以現在對每個人來說重新安排他們的生產和一切還為時過早。但我們看到那裡的生產結果比我們預期的要好一些。

Back to hybrid, and I think your question is probably more into the regions that are less on hybrid like North America, it's indeed attracting a lot of discussions with customers on understanding what are the powertrains that we need to develop with them.

回到混合動力，我認為你的問題可能更多地涉及北美等混合動力較少的地區，這確實吸引了與客戶的大量討論，以了解我們需要與他們一起開發什麼動力系統。

Now it's not for the next three months, obviously, when we developed a powertrain. It's further down the line, but those discussions have really intensified for the last six months.

顯然，現在不是我們開發動力系統的未來三個月。這是更進一步的事情，但這些討論在過去六個月確實變得更加激烈。

Am I right that when I look at one of the trends with vehicle manufacturers, is that investment or demand for the latest technology is higher than it's been in the past. In the past, they might have been looking for old applications. They're really trying to push the envelope with the latest and greatest technology, which is one of your product strengths, correct?

當我觀察汽車製造商的趨勢之一時，對最新技術的投資或需求比過去更高，我說得對嗎？過去，他們可能一直在尋找舊的應用程式。他們確實在嘗試用最新、最先進的技術來挑戰極限，這是你們的產品優勢之一，對嗎？

Well, you have two points. The first one is that, obviously, there is the hybrid push from the car makers, but at the same time, you probably know that in the US, we are planning for new emission regulations that, on their own, are driving for an increased level of technology.

嗯，你有兩點。第一個是，顯然，汽車製造商正在推動混合動力汽車，但同時，您可能知道，在美國，我們正在計劃新的排放法規，這些法規本身正在推動增加技術水平。

And that is the reason why we are talking with everyone, because it's not as simple as just saying, I'm taking that old engine I was having somewhere in the world, and we're putting a hybrid architecture on top and everything will be fine.

這就是我們與每個人交談的原因，因為這不僅僅是說，我正在使用我在世界某個地方擁有的舊引擎，我們將混合架構放在上面，一切都會變得簡單美好的。

The car makers are really taking that prime statement with a much deeper view on what is the way to optimize, not only in light of what's expected from these hybrid powertrains in the coming years, but also what are the emission regulations that need to be phased. All-in-all, it's a good discussion for us.

汽車製造商確實在認真對待這一主要聲明，對優化方式有更深入的了解，不僅考慮到未來幾年對這些混合動力系統的預期，還考慮到需要分階段實施的排放法規。總而言之，這對我們來說是個很好的討論。

Absolutely. Sean, one quick question. What is the current share count or what will be the share count on the queue?

絕對地。肖恩，一個簡單的問題。目前的共享計數是多少，或者隊列中的共享計數是多少？

Let me look. I want to say it is 230 or so -- 233. But let me look at that. I mean, let me look through my [queue] real quick. I believe it's around 233.

讓我看看。我想說的是 230 左右——233。但讓我看看。我的意思是，讓我快速瀏覽一下我的[隊列]。我相信大約是233。

No, that was the average, but like where is it now? Because it seems like a lot of the share repurchase occurred late in the quarter.

不，那是平均水平，但現在在哪裡？因為看起來很多股票回購都發生在本季末。

Yes. Well, we obviously we didn't authorize the new program until we reported our earnings. And then we started after that in our Q4 earnings. So in the middle of February, at that point, then we had authorized the new share repurchase program. It started then. So we got about half the quarter.

是的。嗯，顯然，在我們報告我們的收益之前，我們沒有授權這個新計劃。然後我們開始第四季的收益。所以在二月中旬，那時我們就批准了新的股票回購計畫。事情就是從那時開始的。所以我們得到了大約一半的季度。

Okay. Okay. So as we look to 2Q and 3Q going forward, we should see -- assuming you're able to go through a chunk of the repo program -- we should see it come down by year end somewhere in the $210 million range. Is that the right way to think about it?

好的。好的。因此，當我們展望第二季和第三季時，我們應該看到——假設你能夠完成回購計劃的大部分——我們應該看到它到年底會下降到 2.1 億美元的範圍內。這是正確的思考方式嗎？

Yes. I mean, we will continue to be in the market repurchasing shares, and also the luxury of delevering as you saw this quarter.

是的。我的意思是，我們將繼續在市場上回購股票，以及正如您在本季看到的那樣，進行去槓桿化。

Yes.

是的。

But we're being smart about it as well. We're trying to support the price and buy on the dip. So I don't want to give you a guide as to how much we purchased by the end of the year. We realized almost most of the program we had in place last year, and we're going to try to do the same, assuming we can do it in a reasonable way.

但我們對此也很聰明。我們正在努力支撐價格並逢低買入。因此，我不想向您提供有關我們到年底購買了多少的資訊。我們意識到去年實施的幾乎大部分計劃，我們將嘗試做同樣的事情，假設我們能以合理的方式做到這一點。

Perfect.

完美的。

And at a reasonable price.

且價格合理。

Thank you very much.

非常感謝。

Thank you, Debbie. I think that's the last call we’ll take today and thank you, everybody, for joining us on our Q1 results conference call. And if you have any other questions, please feel free to follow up with myself.

謝謝你，黛比。我認為這是我們今天要進行的最後一次電話會議，感謝大家參加我們的第一季業績電話會議。如果您還有任何其他問題，請隨時與我聯絡。

The conference has now concluded. Thank you for attending today's presentation. You may now this correct.

會議現已結束。感謝您參加今天的演講。您現在可能是正確的。