Hillenbrand Inc (HI) 2024 Q3 法說會逐字稿

Greetings. Welcome to the Hillenbrand third-quarter fiscal year ‘24 earnings call. At this time, all participants are in listen-only mode. (Operator Instructions) As a reminder, this conference is being recorded. I'll now turn the conference over to Sam Mynsberge, Vice President, Investor Relations. Mr. Mynsberge, you may now begin your presentations.

問候。歡迎參加 Hillenbrand 財年第三季 24 日財報電話會議。此時，所有參與者都處於只聽模式。（操作員指示）謹此提醒，本次會議正在錄製中。我現在將會議交給投資者關係副總裁 Sam Mynsberge。Mynsberge 先生，您現在可以開始您的演講了。

Thank you, operator, and good morning, everyone. Welcome to Hillenbrand's earnings call for our third quarter of fiscal year 2024. I'm joined by our President and CEO, Kim Ryan; and our Senior Vice President and CFO, Bob VanHimbergen. I'd like to direct your attention to the supplemental slides posted on our IR website that will be referenced on today's call.

謝謝接線員，大家早安。歡迎參加 Hillenbrand 2024 財年第三季的財報電話會議。我們的總裁兼執行長 Kim Ryan 也加入了進來。以及我們的資深副總裁兼財務長 Bob VanHimbergen。我想請您注意我們 IR 網站上發布的補充幻燈片，今天的電話會議將引用這些幻燈片。

Turning to slide 3. A reminder that our comments may contain certain forward-looking statements that are subject to the Safe Harbor provisions of the securities laws. These statements are not guarantees of future performance and our actual results could differ materially.

轉到投影片 3。提醒您，我們的評論可能包含某些受證券法安全港條款約束的前瞻性聲明。這些陳述並不是對未來績效的保證，我們的實際結果可能會有重大差異。

Also during the course of this call, we will be discussing our results on a continuing operations basis, which excludes any impact from the discontinued operations basis as well as certain non-GAAP operating performance measures, including organic comparisons for our segments, which exclude the impacts from acquisitions, divestitures, and foreign currency exchange rates.

此外，在本次電話會議期間，我們將在持續經營的基礎上討論我們的業績，其中不包括已終止經營的影響以及某些非公認會計準則經營業績指標，包括對我們部門的有機比較，其中不包括收購、剝離和外幣匯率的影響。

I encourage you to review the appendix and slide 3 of the presentation as well as our 10-Q, which can be found on our website for a deeper discussion of non-GAAP information, forward-looking statements, and the risk factors that could impact our actual results.

我鼓勵您查看簡報的附錄和幻燈片 3 以及我們的 10-Q，您可以在我們的網站上找到這些內容，以更深入地討論非 GAAP 資訊、前瞻性陳述以及可能影響的風險因素我們的實際結果。

Finally, as of August 1, Schenck Process Food and Performance Materials has been rebranded under our existing Coperion brand, but will be referred to as FPM throughout today's call. With that, I'll now turn the call over to Kim.

最後，自 8 月 1 日起，申克工藝食品和高性能材料已更名為我們現有的科倍隆品牌，但在今天的電話會議中將被稱為 FPM。現在，我將把電話轉給 Kim。

Thank Sam, and hello, everyone. Thank you for joining us on this morning's call. We are pleased with the progress we made in executing our strategy during this quarter in light of tougher than expected macro environment as our FPM integration continued to progress well and exceeded our expectations for synergy achievement. However, the quarter was also characterized by heightened demand pressures across our mid- and long-cycle product lines as ongoing uncertainty in the macroeconomic environment resulted in significantly lower than expected orders and revenue within our advanced process solutions segment.

謝謝薩姆，大家好。感謝您參加今天早上的電話會議。鑑於比預期更為嚴峻的宏觀環境，我們對本季在執行策略方面取得的進展感到高興，因為我們的 FPM 整合繼續進展順利，超出了我們對協同效應的預期。然而，本季的另一個特點是我們的中長週期產品線的需求壓力加大，因為宏觀經濟環境的持續不確定性導致我們的先進製程解決方案部門的訂單和收入大大低於預期。

In our molding technology solutions segment, demand remains relatively stable, but we've yet to see a rebound in overall order patterns as macro-industry trends and machine utilization deteriorated as we progress through the quarter. We continue to see pressure to the recovery time line in MTS, which necessitated the noncash impairment charge taken in the quarter. As we announced in yesterday's press release.

在我們的成型技術解決方案領域，需求保持相對穩定，但隨著本季宏觀產業趨勢和機器利用率的惡化，我們尚未看到整體訂單模式的反彈。我們繼續看到 MTS 的恢復時間面臨壓力，這使得本季需要提列非現金減損費用。正如我們在昨天的新聞稿中所宣布的那樣。

From a performance standpoint, total revenue grew 10% over prior year, primarily driven by the acquisition of FPM but decreased 8% organically. We continued to see higher aftermarket revenue across both segments, however, this was offset by a decline in capital equipment volume stemming from the ongoing order pressures that we've been facing throughout the year.

從業績角度來看，總收入比上年增長了 10%，主要是由於收購 FPM，但有機下降了 8%。我們繼續看到兩個細分市場的售後收入都在增加，但是，這被我們全年面臨的持續訂單壓力導致的資本設備數量下降所抵消。

Adjusted EBITDA margins also improved sequentially in both segments as we continued a heavy focus on executing our previously announced restructuring actions and accelerating additional cost initiatives. In order to speed these cost-out initiatives along, we're utilizing temporary additional resources to help us execute our plans as quickly and effectively as possible, given the intensified volume challenges.

由於我們繼續專注於執行先前宣布的重組行動和加速額外成本計劃，這兩個部門的調整後 EBITDA 利潤率也連續改善。為了加快這些成本削減計劃的進展，考慮到數量挑戰的加劇，我們正在利用臨時的額外資源來幫助我們盡可能快速有效地執行我們的計劃。

We delivered adjusted earnings per share of $0.85, which was at the high end of our guidance, due in part to the success of these cost initiatives, which help to mitigate the softer than expected volumes. However, we continue to see pressure to our previous performance expectations, given the magnitude of the order shortfall in APS and the increasing uncertainty around the world, which has dampened our outlook. Bob will discuss this further in a moment.

我們的調整後每股收益為 0.85 美元，處於我們指引的高端，部分原因是這些成本計劃的成功，有助於緩解銷售低於預期的情況。然而，鑑於 APS 訂單缺口的嚴重性以及全球不確定性的增加，我們先前的業績預期繼續面臨壓力，這削弱了我們的前景。鮑伯稍後將進一步討論這個問題。

I'll now provide some additional color on what we're seeing across key end markets. As I mentioned, orders in APS were materially impacted by continuing delays in customer decision timing. While we've been experiencing customer delays throughout the year, they became more pronounced during the quarter as customers remain highly sensitive to several different factors, the elevated interest rate environment, ongoing inflation, geopolitical uncertainty and other global macroeconomic concerns. As a result, we're seeing customers conserve cash by postponing CapEx investments decisions beyond their current budget cycle. And we've seen this behavior across most of our key end markets globally.

我現在將提供一些關於我們在主要終端市場所看到的情況的額外資訊。正如我所提到的，APS 中的訂單受到客戶決策時間持續延遲的重大影響。儘管我們全年都遇到了客戶延誤的情況，但由於客戶對多種不同因素、利率環境升高、持續通膨、地緣政治不確定性和其他全球宏觀經濟問題仍然高度敏感，這種情況在本季度變得更加明顯。因此，我們看到客戶透過將資本支出投資決策推遲到當前預算週期之外來節省現金。我們在全球大多數主要終端市場都看到了這種行為。

I'll start my comments with polymers and advanced materials in APS. As we discussed last quarter, we believe we won a majority of the projects awarded for large polyolefin systems so far this year. We expected to see decisions made for incremental investment projects in India and the Middle East in the back half of the year, which have not yet been awarded on our originally anticipated timeframe.

我將從 APS 中的聚合物和先進材料開始我的評論。正如我們上季度所討論的，我們相信今年迄今為止我們贏得了大型聚烯烴系統的大部分項目。我們預計將在今年下半年看到印度和中東增量投資項目的決定，但這些項目尚未在我們最初預期的時間範圍內授予。

While the timing of final project decisions have slowed significantly, the level of customer quote activity remains high across these regions. In addition to growing project pipelines for polyolefin investments in other parts of Asia and Africa, we believe the strength of our global footprint and our best-in-class technologies and solutions keep us well positioned in these regions for when decision timing begins to normalize.

儘管最終專案決策的時間已顯著放緩，但這些地區的客戶報價活動水準仍然很高。除了亞洲和非洲其他地區不斷增加的聚烯烴投資項目外，我們相信，我們的全球影響力以及一流的技術和解決方案使我們在這些地區處於有利地位，以便決策時機開始正常化。

For midsize equipment system serving the areas of engineered plastics, recycling, and batteries, we continue to see customers pausing their CapEx projects with a number of decisions we expected over the summer down delayed outside of the current fiscal year. However, the breadth of our product and systems offering for these markets, which was greatly enhanced through the acquisitions of FPM and Herbold has provided significant opportunity to compete more effectively than we could before.

對於服務於工程塑膠、回收和電池領域的中型設備系統，我們繼續看到客戶暫停他們的資本支出項目，我們預計夏季的一些決定將推遲到本財年之外。然而，我們為這些市場提供的產品和系統的廣度透過收購 FPM 和 Herbold 得到了極大的增強，這為我們提供了比以前更有效競爭的重要機會。

Our teams remain very energized for our ability to access new customers, increased share wallet with existing customers and partner with customers in developing innovative solutions for these highly technical processes.

我們的團隊仍然充滿活力，因為我們有能力接觸新客戶，增加與現有客戶的共享錢包，並與客戶合作為這些高科技流程開發創新解決方案。

Turning to food, health, and nutrition, orders in the quarter improved by double digits sequentially, but did not achieve the levels we expected coming into the year. While these end markets have historically been less cyclical, right now, we are seeing elevated CapEx sensitivity from customers. That said, the pipeline of projects across our key customer segments of baked goods, pet foods, snacks, and cereals remains robust as customers evaluate investments for both capacity expansion and optimizing their existing operations through automation and equipment upgrades.

談到食品、健康和營養，本季的訂單環比增長了兩位數，但沒有達到我們今年預期的水平。雖然這些終端市場歷來週期性較低，但目前我們發現客戶的資本支出敏感度有所提高。儘管如此，隨著客戶評估產能擴張和透過自動化和設備升級優化現有營運的投資，我們烘焙食品、寵物食品、零食和穀物等主要客戶領域的專案管道仍然強勁。

We have not seen customers cancel projects in the pipeline, but we have seen a similar trend of delayed investment decisions as customers balanced new investments with inflationary pressures, higher interest rates and softening consumer trends.

我們沒有看到客戶取消籌備中的項目，但我們看到了類似的延遲投資決策的趨勢，因為客戶在新投資與通膨壓力、利率上升和消費趨勢疲軟之間進行了權衡。

Finally, for our aftermarket parts and services in APS, we continue to see solid growth in this highly profitable part of the business as our large and growing installed base pays dividends in the legacy business. In addition, we're driving strong performance within our recent acquisitions through the execution of integration initiatives, including dedicated aftermarket resources, better visibility into installed base opportunities, and improved pricing realization.

最後，對於 APS 中的售後零件和服務，我們繼續看到這一高利潤業務部分的穩健增長，因為我們龐大且不斷增長的安裝基礎為傳統業務帶來了紅利。此外，我們透過執行整合計劃，包括專門的售後市場資源、更好地了解安裝基礎機會以及提高定價實現，在最近的收購中推動強勁業績。

As discussed previously, this is a key focus area of our integration, and I'm pleased with the traction that we're making. However, the delay in larger polyolefin projects orders has put pressure on our ability to achieve even higher levels of aftermarket growth as many of those large projects would have included upfront spare part packages.

正如前面所討論的，這是我們整合的關鍵重點領域，我對我們所取得的進展感到滿意。然而，大型聚烯烴專案訂單的延遲給我們實現更高水準的售後市場成長的能力帶來了壓力，因為許多大型專案將包括前期備件包。

Now turning to our molding technologies solutions segment. In the quarter, we saw improved demand for automotive and packaging applications, primarily in India and Asia as hot runner demands saw it's first quarter of growth in China since early 2022. Overall, for this segment, orders were up slightly year over year, but essentially flat on a sequential basis, as we've yet to see signs of broader demand recovery.

現在轉向我們的成型技術解決方案部分。本季度，我們看到汽車和包裝應用的需求有所改善，主要是在印度和亞洲，因為中國的熱流道需求自 2022 年初以來首次出現季度增長。總體而言，該細分市場的訂單同比略有增長，但環比基本持平，因為我們尚未看到更廣泛的需求復甦的跡象。

Key macro indicators showed positive signs in April, but then trended negatively through the remainder of the quarter, reflecting a challenging and uncertain environment for machine utilization and mold-making activity in North America. While investments in new capital equipment remain subdued, we continue to focus on driving aftermarket parts and services revenue, achieving a record level in the quarter.

主要宏觀指標在 4 月顯示出積極跡象，但隨後在本季剩餘時間內呈現負面趨勢，反映出北美機器利用和模具製造活動面臨充滿挑戰和不確定的環境。儘管新資本設備的投資仍然低迷，但我們繼續專注於推動售後零件和服務收入，在本季度達到創紀錄的水平。

In summary, we've experienced greater than expected challenges across our end markets as macro factors have weighed heavily on our near to midterm growth opportunities and expectations. In light of this, we continue to focus and execute on controllable factors within our four walls, pursue targeted growth initiatives and exercise discipline regarding discretionary costs.

總之，我們的終端市場經歷了比預期更大的挑戰，因為宏觀因素嚴重影響了我們近中期的成長機會和預期。有鑑於此，我們繼續關注並執行四面牆內的可控因素，追求有針對性的成長計劃，並對可自由支配的成本實行紀律。

In addition, we remain on track with previously announced restructuring actions, and we continue to evaluate further actions to ensure that we're optimizing our cost structure across the organization. I remain confident in our strategy and the long-term catalyst for our business as the growing global middle class and a drive for increased sustainability, supports long-term demands for durable plastics, processed food, and more sustainably focused solutions, including recycling and battery. I'm confident that we're well positioned to meet those demands through our leading brands and our differentiated and highly engineered processing solutions.

此外，我們仍將繼續執行先前宣布的重組行動，並繼續評估進一步的行動，以確保優化整個組織的成本結構。我對我們的策略和業務的長期催化劑仍然充滿信心，因為全球中產階級的不斷壯大和可持續發展的推動力，支持了對耐用塑料、加工食品和更注重可持續發展的解決方案（包括回收和電池）的長期需求。我相信，我們有能力透過我們的領導品牌以及差異化和高度工程化的加工解決方案來滿足這些需求。

Now, before turning the call over to Bob to discuss our financials in more detail, I want to highlight the progress of our integration as well as touch on our most recent sustainability report. As we approach the one-year anniversary of our FPM acquisition, I'm tremendously pleased with the fit of the business within our portfolio, the people, the culture, the technologies, and capabilities of the combined companies. We are stronger as we've come together as one team.

現在，在將電話轉給鮑勃以更詳細地討論我們的財務狀況之前，我想強調一下我們整合的進展以及我們最新的可持續發展報告。在我們收購 FPM 一週年之際，我對我們的業務與我們的投資組合、合併後公司的人員、文化、技術和能力的契合度感到非常滿意。當我們作為一個團隊團結在一起時，我們會變得更加強大。

Through the deployment of our Hillenbrand operating model and the utilization of temporary external resources, we've been able to accelerate operational efficiencies and cost synergies, resulting in EBITDA margins over 300 basis points ahead of what we had originally planned by this time within the FPL business, while the team and I are disappointed that the broader demand environment has limited the speed in which we can capitalize on more commercial opportunities. I'm very proud of how we've executed our integration plans to create a winning organization for the future.

透過部署我們的 Hillenbrand 營運模式和利用臨時外部資源，我們能夠加快營運效率和成本協同效應，從而使 EBITDA 利潤率比我們此時在 FPL 內的最初計劃提前 300 個基點以上業務，而我和團隊對更廣泛的需求環境限制了我們利用更多商業機會的速度感到失望。我對我們如何執行整合計劃以創建一個面向未來的成功組織感到非常自豪。

Most importantly, I'm highly confident in our team and our portfolio of leading process technologies for ingredient automation, mixing, extruding, portioning, as well as full systems integration that will allow us to deliver best-in-class solutions to customers in the years ahead

最重要的是，我對我們的團隊和領先的配料自動化、混合、擠出、分配以及完整系統集成的工藝技術組合充滿信心，這將使我們能夠為客戶提供一流的解決方案。

Finally, as you saw in May, we published our fifth sustainability report, which focused on product innovation, supply chain, and increased transparency around our key environmental metrics like waste, water, and Scope 1, 2 and 3 emissions. We're pleased with the continued progress we're making in this regard and as a result have received top quartile scores amongst the amongst the industrial companies by third-party reporting agencies. With that, I'll now turn the call over to Bob.

最後，正如您在5 月看到的那樣，我們發布了第五份永續發展報告，該報告重點關注產品創新、供應鏈以及提高廢物、水和範圍1、2 和3 排放等關鍵環境指標的透明度。我們對在這方面取得的持續進展感到高興，因此在第三方報告機構的工業公司中獲得了前四分之一的分數。這樣，我現在將把電話轉給鮑伯。

Thanks, Kim, and good morning, everyone. Turning to our consolidated performance on slide 5. We delivered revenue of $787 million, an increase of 10% compared to the prior year, primarily due to the acquisition of FPM. On an organic basis, revenue decreased 8% year over year as pricing and higher aftermarket revenue were more than offset by lower capital equipment volumes.

謝謝金，大家早安。轉向投影片 5 上我們的綜合表現。我們實現營收 7.87 億美元，比上年增長 10%，這主要歸功於對 FPM 的收購。從有機角度來看，收入年減 8%，因為定價和售後市場收入的增加被資本設備數量的減少所抵消。

Adjusted EBITDA of $131 million increased 4%, but decreased 14% organically as pricing, the impact of cost actions and favorable product mix were more than offset by the flow-through effect of lower volume and cost inflation.

調整後 EBITDA 為 1.31 億美元，成長 4%，但有機下降 14%，因為定價、成本行動和有利的產品組合的影響被銷售下降和成本通膨的流通效應所抵消。

We delivered consolidated adjusted EBITDA margin of 16.7%, a decrease of 90 basis points over the prior year. We reported GAP net loss of $249 million for a loss of $3.53 per share, down from income of $0.6 per share in the prior year, primarily due to a $265 million noncash impairment charge in the quarter related to the hot runner product line within the molding technology solutions segment.

我們的綜合調整後 EBITDA 利潤率為 16.7%，比上年下降 90 個基點。我們報告 GAP 淨虧損為 2.49 億美元，每股虧損 3.53 美元，低於上一年每股收益 0.6 美元，這主要是由於本季度與模具內熱流道產品線相關的 2.65 億美元非現金減值費用技術解決方案部分。

As Kim referenced, this charge was necessitated by the prolonged decline in demand and uncertain recovery timing for that business. We continue to take action to right size the cost structure in this business, improve operational efficiency, and focus on new product development to ensure we're well positioned to serve customers once market conditions improve.

正如 Kim 所提到的，這項費用是由於需求長期下降和該業務復甦時間不確定而必需的。我們將繼續採取行動，調整該業務的成本結構，提高營運效率，並專注於新產品開發，以確保一旦市場狀況改善，我們就能為客戶提供服務。

Adjusted earnings per share of $0.85 decreased $0.1 or 11% year over year, but was at the high end of our expectations coming into the quarter, aided by the benefit of accelerated cost actions, which helped to offset the shortfall in volumes.

調整後每股收益為 0.85 美元，年減 0.1 美元，即 11%，但處於我們對本季度預期的最高水平，這得益於加速成本行動的好處，這有助於抵消銷售的不足。

Our adjusted effective tax rate in the quarter was 28.6%, which was in line with our expectations. Our cash flow from operations was $46 million in the quarter, down approximately $43 million from the prior year, primarily due to continued pressure of lower order intake and timing of working capital on large projects.

我們本季調整後的有效稅率為 28.6%，符合我們的預期。本季我們的營運現金流為 4,600 萬美元，比上年減少約 4,300 萬美元，這主要是由於訂單量減少和大型專案營運資金安排持續面臨壓力。

Capital expenditures were $16 million in the quarter, and we returned approximately $16 million to shareholders through our quarterly dividend. We continue to drive operational improvements in our trade working capital, however, we are likely to experience sustained pressure to our cash flow performance until order patterns normalize. We now project free cash flow in the year to be approximately $100 million.

本季的資本支出為 1,600 萬美元，我們透過季度股息向股東返還約 1,600 萬美元。我們繼續推動貿易營運資本的營運改善，但是，在訂單模式正常化之前，我們的現金流表現可能會面臨持續的壓力。我們現在預計今年的自由現金流約為 1 億美元。

Now, moving to segment performance, starting on APS on slide 6. Revenue of $569 million increased 23% compared to the prior year, primarily driven by FPM. Organic revenues decreased 6% year over year as lower capital equipment volume, more than offset price realization, and aftermarket revenue growth.

現在，轉向細分性能，從幻燈片 6 上的 APS 開始。營收為 5.69 億美元，較上年增長 23%，這主要是由 FPM 推動的。由於資本設備數量減少、超過抵銷價格實現以及售後市場收入成長，有機收入較去年同期下降 6%。

Adjusted EBITDA of $109 million increased 17% year over year and was down 8% organically, primarily driven by lower volume and cost inflation, which more than offset pricing. We delivered adjusted EBITDA margin in the quarter of 19.2%, which was down 90 basis points over the prior year or 30 basis points organically.

調整後 EBITDA 為 1.09 億美元，年增 17%，有機下降 8%，這主要是由於產量和成本通膨下降，這足以抵銷定價。本季調整後 EBITDA 利潤率為 19.2%，較上年下降 90 個基點，有機下降 30 個基點。

We expected separate margin dilution given FPM's 13% margins at the time of acquisition. But as a result of stronger margin performance through accelerated cost-centered achievement, operational efficiency gains, and aftermarket growth in pricing, we've been able to mitigate the dilutive effect more quickly than originally anticipated, even with top-line challenges related to capital equipment volumes.

鑑於 FPM 在收購時的利潤率為 13%，我們預期利潤率會單獨稀釋。但由於透過加速以成本為中心的成就、營運效率的提高和售後市場定價的成長，利潤率表現更加強勁，即使面臨與資本相關的頂線挑戰，我們也能夠比最初預期更快地減輕稀釋效應設備數量。

Backlog of $1.73 billion increased 8% compared to the prior year, driven by the addition of FPM. On an organic basis, backlog decreased 8% and was also down 8% sequentially due to the execution of existing backlog and increased order softness across mid- and long-cycle parts of the segments.

由於 FPM 的加入，積壓訂單達到 17.3 億美元，較前一年增加 8%。從有機角度來看，積壓訂單下降了 8%，由於現有積壓訂單的執行以及該部門中長週期部分訂單軟度的增加，積壓訂單也環比下降了 8%。

We continue to focus on accelerating cost actions in the segment, such as pursuing additional procurement, value engineering, and product standardization opportunities, driving productivity within our plants, and right sizing our cost structure in response to the challenging demand environment.

我們繼續專注於加速該領域的成本行動，例如尋求額外的採購、價值工程和產品標準化機會，提高工廠的生產力，以及調整成本結構以應對充滿挑戰的需求環境。

As we head toward fiscal 2025, we recognize the pressure lower backlog may put on our ability to drive top-line performance, which makes the acceleration of these cost actions even more critical in order to protect profitability.

當我們邁向 2025 財年時，我們認識到積壓的減少可能會給我們推動營收績效的能力帶來壓力，這使得加快這些成本行動對於保護獲利能力變得更加重要。

Now turning to MTS on slide 7. Revenue of $217 million decreased 14% year over year, primarily due to lower volume for injection molding equipment, partially offset by aftermarket growth. Adjusted EBITDA of $35 million decreased 32% and adjusted EBITDA margin of 15.9% decreased 430 basis points compared to the prior year, largely driven by the impact of lower volumes on operating leverage and price cost pressure. However, on a sequential basis, margins were up 100 basis points as we began to realize the benefit of our restructuring actions.

現在轉向幻燈片 7 上的 MTS。營收為 2.17 億美元，年減 14%，主要是由於注塑設備銷售下降，但部分被售後市場成長所抵銷。調整後 EBITDA 為 3,500 萬美元，下降 32%，調整後 EBITDA 利潤率為 15.9%，與前一年相比下降 430 個基點，這主要是由於銷售下降對營運槓桿和價格成本壓力的影響。然而，隨著我們開始意識到重組行動的好處，利潤率環比上升了 100 個基點。

Backlog of $238 million decreased 11% compared to the prior year, but increased 4% on a sequential basis. As Kim mentioned, we saw pockets of improvement outside of North America as orders remained relatively stable on a sequential basis and improved 3% year over year. Continued execution of our cost actions remains a top priority for the segment until demand recovers.

積壓訂單 2.38 億美元，較上年減少 11%，但較上季增加 4%。正如 Kim 所提到的，我們看到北美以外地區的訂單有所改善，訂單環比保持相對穩定，比去年同期成長 3%。在需求恢復之前，繼續執行我們的成本行動仍然是該部門的首要任務。

Now turning to slide 8. Net debt at the end of the third quarter was $1.87 billion and net debt to adjusted EBITDA ratio was 3.5 times. Debt reduction remains our number one priority for capital allocation. But as discussed last quarter, our timeline for returning to within our guardrails of [1.7 to 2.7] remains prolonged.

現在轉到投影片 8。第三季末淨負債為18.7億美元，淨負債與調整後EBITDA比為3.5倍。減債仍然是我們資本配置的第一要務。但正如上季所討論的，我們回到 [1.7 至 2.7] 護欄範圍內的時間表仍然很長。

I'll now wrap up with an update to our outlook for the remainder of 2024. The demand environment remains weaker than expected as global macroeconomic uncertainty has increased and customer order timing has elongated materially within our APS segment. Given these challenges, we are updating our outlook for the final quarter of the year. Our full year guidance now assumes total annual revenue of approximately $3.13billion to $3.16 billion. down from our previous range of $3.2 billion to $3.3 billion.

最後，我將更新我們對 2024 年剩餘時間的展望。由於全球宏觀經濟不確定性增加以及我們的 APS 部門的客戶訂單時間大幅延長，需求環境仍弱於預期。考慮到這些挑戰，我們正在更新今年最後一個季度的展望。我們的全年指引目前假設年總收入約為 31.3 億美元至 31.6 億美元。低於我們之前 32 億美元至 33 億美元的範圍。

Adjusted EBITDA is now expected to be in the range of $502 million to $512 million, down from $512 million to $536 million. Margins in each segment remained generally in line with previous expectations. Despite the lower revenue assumptions, adjusted EPS is now expected to be $3.20 to $3.30 previously $3.30 to $3.50, driven by the impact of lower volumes, partially offset by accelerated cost actions being taken across the enterprise and stronger than expected synergy realization within FPM and LINXIS.

調整後 EBITDA 目前預計為 5.02 億美元至 5.12 億美元，低於 5.12 億美元至 5.36 億美元。每個細分市場的利潤率總體上與先前的預期一致。儘管收入假設較低，但調整後每股收益目前預計為3.20 至3.30 美元，之前為3.30 至3.50 美元，這是由於銷量下降的影響，部分被整個企業採取的加速成本行動以及FPM 和LINXIS 內部強於預期的協同效應所抵銷。

Please review slide 9 for additional guidance assumptions, as the timing for a more normalized demand environment remains unclear. We will continue to take necessary steps to position the business for long-term success. We cannot dictate the macro environment to remain disciplined on controlling costs, executing on our targeted restructuring and integration plans, and accelerating cost saving initiatives to ensure we remain well-positioned for when market demand recovers. With that, I'll turn the call back over to Kim.

請查看投影片 9 以了解更多指導假設，因為需求環境更正常化的時間仍不清楚。我們將繼續採取必要措施，使業務長期成功。我們不能在宏觀環境下繼續嚴格控製成本、執行有針對性的重組和整合計劃以及加快成本節約舉措，以確保我們在市場需求復甦時保持有利地位。這樣，我會將電話轉回給 Kim。

Thanks, Bob. Before taking questions, I'll end our presentation with a few final remarks. The current macro-economic environment continues to pressure results, which we expect to persist through the end of the year and potentially beyond. Although we do not see clear signals of market recovery timing, we will continue to control what we can by diligently managing costs, driving productivity, and executing our integration restructuring plan.

謝謝，鮑伯。在回答問題之前，我將以最後幾句話結束我們的演講。當前的宏觀經濟環境繼續給業績帶來壓力，我們預計這種情況將持續到今年年底，甚至可能更長。儘管我們沒有看到市場復甦時機的明確訊號，但我們將繼續透過努力管理成本、提高生產力和執行整合重組計劃來控制我們所能做到的。

I'm confident we're taking the appropriate actions to manage the business in the near term. And I have strong conviction about our portfolio of leading brands and differentiated technologies, and believe we will remain well positioned for long-term growth and value creation. With that, I'll open the line for questions.

我相信我們會在短期內採取適當的行動來管理業務。我對我們的領先品牌和差異化技術組合充滿信心，並相信我們將保持長期成長和價值創造的有利地位。接下來，我將開通提問專線。

(Operator Instructions) Daniel Moore, CJS Securities.

（操作員指示）Daniel Moore，CJS 證券。

Thank you. Good morning, Kim. Good morning, Bob. I appreciate taking a few questions. Start with APS, it sounds like it's across the board but are there certain end markets or geographies that may be reacting to the macro you know more so than others? And I'm just wondering specifically, it sounds like food and recycling is holding up better than most but not quite as robust as maybe the prior expectations. Want to make sure I heard that right. Thanks.

謝謝。早上好，金。早安，鮑伯。我很高興回答幾個問題。從 APS 開始，聽起來像是全面的，但是否有某些終端市場或地區可能會對您比其他人更了解的宏觀做出反應？我只是特別想知道，聽起來食品和回收的情況比大多數情況都要好，但並不像之前的預期那麼強勁。想確定我沒聽錯。謝謝。

Yeah. I think from a market standpoint, I think some of the challenges are in those mid-sized projects, are very prevalently where we're seeing that. In terms of geographies, I think that the expectations that we had from a polyolefin standpoint, we expected some of these large projects to come through in Middle East and India. And while we've still got a lot of activity going on in those projects, that's where we continue to see the delays.

是的。我認為從市場的角度來看，我認為一些挑戰存在於那些中型專案中，在我們所看到的地方非常普遍。就地理而言，我認為從聚烯烴的角度來看，我們預計其中一些大型專案將在中東和印度實現。雖然我們在這些項目中仍有大量活動正在進行，但我們仍然看到延誤。

We received a large -- as we mentioned in earlier calls, we received a large number of orders in China in the large projects earlier in the year. And we believe, we received the majority of the market projects awarded.

我們收到了大量訂單——正如我們在之前的電話中提到的，今年早些時候，我們在中國的大型項目中收到了大量訂單。我們相信，我們獲得了大多數市場項目的授予。

But again, where we're seeing the pressure and the move out on timing is these large projects in those Asia geographies and Middle East geographies, and the primary pressures in these mid-size type projects that are really pushing out, and especially characterized by customers who are a bit more sensitive to a lot of the dynamics that are going on, the interest rates, consumer demand, concerns around consumer demand reduction, et cetera. Those types of projects are going to be more sensitive to that in the APS environment.

但同樣，我們看到的壓力和時機的轉移是亞洲地區和中東地區的這些大型項目，以及這些真正正在推出的中型項目的主要壓力，特別是對正在發生的許多動態、利率、消費者需求、對消費者需求減少的擔憂等更敏感的客戶。這些類型的項目將對 APS 環境中的項目更加敏感。

Really helpful. And I know it's sort of an impossible question, but if you had to rank order, how critical are interest rates? I mean, are people sort of sitting, waiting on the sidelines for the 25, 50 plus basis point, a little bit of relief? Or is it more -- just general macro uncertainty from what you're hearing from customers?

真的很有幫助。我知道這是一個不可能的問題，但如果你必須排序，利率有多重要？我的意思是，人們是否會坐在場邊等待 25、50 多個基點，稍微鬆一口氣？還是更多——只是您從客戶那裡聽到的整體宏觀不確定性？

I would say that there are just a number of factors right now. I don't think you can point to any one and say that is the silver bullet, and if and when that changes everything, that'll be the item that kind of opens up the dam of order flow. I think that there are -- right now you've got geopolitical concerns, you've got interest rate concerns, you've got inflation -- ongoing inflation concerns, and you add in just what's going to happen, for instance, in the US with election and what does that mean to policy and trade.

我想說，目前只有幾個因素。我認為你不能指著任何一個人說這是靈丹妙藥，如果這改變了一切，那將是打開訂單流大壩的項目。我認為，現在你有地緣政治擔憂，你有利率擔憂，你有通膨——持續的通膨擔憂，你還加上了即將發生的事情，例如，美國大選，這對政策和貿易意味著什麼。

All of those concerns, I think, are mounting. And I think it's just causing people to take a step back and continue to watch and see how things work out over the next couple of quarters. And that's really the slowdown that we saw this quarter at a significantly greater rate than we expected.

我認為，所有這些擔憂都在加劇。我認為這只會讓人們退後一步，繼續觀察未來幾季的情況。這確實是我們本季看到的放緩速度，速度明顯高於我們的預期。

And that has been the real change that caused us to step back and look at this from a more conservative point of view, given that we are not seeing the change in trajectory that we had expected at this point of the year.

鑑於我們在今年這個時候沒有看到我們預期的軌跡變化，這才是真正的變化，促使我們退後一步，從更保守的角度來看待這個問題。

Understood. Really helpful. I mean sticking with APS, I know you don't want to get into fiscal '25 with backlogs ticking lower and just given the uncertainty around capital equipment purchase decisions, I would expect EPS revenue perhaps be modestly lower in '25 unless we start to put more into backlog in the next quarter or two? Is that a reasonable way to look at the world? Or am I kind of maybe missing something?

明白了。真的很有幫助。我的意思是堅持使用APS，我知道您不希望進入25 財年，積壓訂單逐漸減少，並且考慮到資本設備採購決策的不確定性，我預計EPS 收入在25 財年可能會小幅下降，除非我們開始在接下來的一兩個季度投入更多積壓訂單？這是看待世界的合理方式嗎？或者我可能錯過了什麼？

Yeah. I'll take that one, Dan. So obviously, we will provide guidance in November on fiscal '25. But as we think about next year, a couple of things to think about really in both businesses. So we're really not seeing signs of a meaningful market recovery for MTS.

是的。我要那個，丹。顯然，我們將在 11 月提供關於 25 財年的指導。但當我們考慮明年時，這兩個行業都需要真正考慮一些事情。因此，我們確實沒有看到 MTS 市場出現有意義復甦的跡象。

But I'd highlight two things. One, the hot runner business certainly can be quick to recover. And then the other thing to keep in mind is that we do have run rate savings from our restructuring charge we took this year that's going to benefit by 2025.

但我要強調兩件事。第一，熱流道業務肯定會很快復甦。另一件需要記住的事情是，我們確實從今年的重組費用中節省了運行費，這將在 2025 年受益。

Now, on the APS side, with the order trends that we're seeing right now, we do expect backlog in APS to be down sequentially. And that's certainly going to put pressure on revenue depending on those order patterns.

現在，在 APS 方面，根據我們現在看到的訂單趨勢，我們確實預計 APS 的積壓量將連續下降。根據這些訂單模式，這肯定會給收入帶來壓力。

So on the accounting side, we do recognize revenue on a percentage of completion basis. And so timing of those orders would certainly impact '25. How those orders come in would impact when revenue is certainly recorded, considering those orders are mid and long term in duration.

因此，在會計方面，我們確實以完成百分比確認收入。因此，這些訂單的時間肯定會影響「25」。考慮到這些訂單的持續時間是中長期的，這些訂單的進來方式將影響收入的決定時間。

So those 12 to 24 months in duration certainly impacts when that revenue is booked and those orders coming in the door, I should say. So near term, we're going to continue to focus on cost actions and operational efficiencies to really mitigate some of that top line pressure.

因此，我應該說，這 12 到 24 個月的持續時間肯定會影響收入的登記和訂單的到來。因此，短期內，我們將繼續專注於成本行動和營運效率，以真正減輕一些頂線壓力。

And that's helpful, Bob, and really impressive what you've done on the margin front in light of the incremental kind of macro and revenue weakness. We think we can hold the line in terms of APS with the restructuring initiatives, the synergies from that FPM, cetera. Just wondering how you're kind of thinking about maybe decrementals in the near term until we start to see that order book increase specifically, I mean, the US side? Thanks.

鮑勃，這很有幫助，鑑於宏觀經濟和收入疲軟的增量，你在利潤率方面所做的工作確實令人印象深刻。我們認為，透過重組措施、FPM 的協同效應等，我們可以在 APS 方面保持穩定。只是想知道，在我們開始看到訂單簿具體增加之前，我是說，美國方面，您如何看待短期內可能出現的遞減？謝謝。

Yes, it's probably hard to say if we're going to hold the line. I mean, we do have obviously a couple of levers we can pull. Certainly on the APS side, we've historically used a contingent -- I won't say strategic workforce, but an outsourcing model. So when volumes do decline, we've had the ability to in-source those hours and reduce that outsource work. And so that's really why you see with the volume decline.

是的，可能很難說我們是否會堅持到底。我的意思是，我們顯然有幾個可以拉動的槓桿。當然，在 APS 方面，我們歷史上一直使用一支隊伍——我不會說戰略勞動力，而是外包模式。因此，當數量確實下降時，我們有能力將這些時間外包並減少外包工作。這就是銷量下降的真正原因。

Our margins in APS have been relatively stable. The other tailwind we have going into next year, the FPM business, as Kim highlighted in her prepared remarks, we’re seeing really strong performance in that business on operational efficiencies as they execute contracts, but also on the synergies where we're accelerating that. So those will be some of the tailwinds we have going into offset some top-line pressure.

我們的 APS 利潤率相對穩定。我們明年將迎來的另一個順風車是FPM 業務，正如Kim 在她準備好的演講中所強調的那樣，我們看到該業務在執行合約時的營運效率方面表現非常強勁，而且在我們正在執行的協同效應方面也表現出色。因此，這些將是我們要抵銷一些營收壓力的一些有利因素。

Yeah. And I think, you know, as you look at kind of the topography of how the business builds up, remember that the strategic focus of this was to build -- to continue to build the portfolio towards businesses that have less exposure to cyclicality.

是的。我認為，當你審視業務發展的格局時，請記住，其策略重點是建立—繼續針對週期性風險較小的業務建立投資組合。

And even though we're seeing a bit more than perhaps is normal in that in that FHN business or the food health and nutrition business, it's still, compared to what you see in the large capital projects business, it's significantly less.

儘管我們在 FHN 業務或食品健康和營養業務中看到的可能比正常情況多一些，但與您在大型資本項目業務中看到的相比，它仍然要少得多。

So remember that the businesses we're using to really help balance that out are the food health and nutrition businesses we've invested heavily in and the aftermarket business. Those two businesses we're heavily focused on so that we can continue to balance out some of the cyclicality that you may see in other parts of the business.

因此請記住，我們用來真正幫助平衡這一點的業務是我們大量投資的食品健康和營養業務以及售後業務。我們專注於這兩項業務，以便我們能夠繼續平衡您在業務其他部分可能看到的一些週期性。

And our ability to react to what we see in those, that cyclicality is, again, as Bob mentioned, really driven by creating flexibility with our capacities. And I was really pleased to see how well that has translated, being down on the top and really not seeing an exponential figure down on the bottom. And that APS side, you can really see how valuable that setup is for being able to flex up and down as volumes change throughout the year.

正如鮑勃所提到的，我們對我們所看到的週期性做出反應的能力實際上是由我們的能力創造靈活性所驅動的。我真的很高興看到它的轉換效果如何，在頂部，在底部確實沒有看到指數數字。在 APS 方面，您可以真正看到該設定對於能夠隨著全年交易量的變化而上下調整有多麼有價值。

Now, that's helpful and certainly evident. Maybe last one for me, and I'll jump back in queue. Appreciate the commentary around accelerating synergies in the integration ahead of schedule on the FPM side. Maybe just talk about -- beyond kind of the vision when you put them together, is there opportunity in a downturn like this to get closer to customers and even maybe accelerate some of the share gains that you had hoped to achieve when you put them together when we think about coming out the other side? That's it for me.

現在，這很有幫助，而且確實很明顯。也許對我來說是最後一個，我會插回隊列。讚賞 FPM 方面提前加速整合綜效的評論。也許只是談談——除了將它們放在一起時的願景之外，在這樣的低迷時期是否有機會拉近與客戶的距離，甚至可能加速您在將它們放在一起時希望實現的一些份額增長當我們考慮走出另一邊？對我來說就是這樣。

Yeah, I would say that, necessity is the mother of invention or some quote like that. What we've really seen with the teams coming together is coming together on portfolio, coming together commercially, coming together thinking about how we can manage projects, how can we more quickly move them into different geographies where we have a footprint and they did not yet have a footprint.

是的，我會說，需求是發明之母或類似的引言。我們真正看到的團隊聚集在一起是在投資組合上聚集在一起，在商業上聚集在一起，聚集在一起思考我們如何管理項目，我們如何更快地將它們轉移到我們有足跡而他們沒有足跡的不同地區卻有足跡。

These are all of the things that the team is working on to continue to push the FPM opportunity ahead. I'm really, really pleased with the way these teams are coming together. At this point, we had hoped that we would have the operating structure in place and that we would be pretty far down the road on having our global shared services implemented, and we are. But we are also already at the point where manufacturing teams are talking to one another, engineering teams are talking to one another, portfolio marketing resources are talking to one another about how we make sure that we have the right products in the portfolio to be able to offer systems and solutions.

這些都是團隊正在努力繼續推動 FPM 機會的所有事情。我對這些團隊的團結方式感到非常非常滿意。在這一點上，我們曾希望我們能夠建立適當的營運結構，並且我們在實施全球共享服務方面已經走得很遠，而我們確實做到了。但我們也已經處於這樣一個階段：製造團隊正在相互交談，工程團隊正在相互交談，產品組合行銷資源正在相互討論我們如何確保我們的產品組合中擁有正確的產品，以便能夠提供系統和解決方案。

So we are very excited about about the opportunities that this brings together and the ability of these teams to work with one another. That's always a question when you do M&A. It's not just about the strategy and the products and the portfolio. It's -- the cultures come together and work effectively together.

因此，我們對這帶來的機會以及這些團隊相互合作的能力感到非常興奮。當你進行併購時，這始終是一個問題。這不僅是策略、產品和產品組合的問題。它是——不同的文化匯聚在一起並有效地合作。

I'm pleased that we're seeing really positive results on all of those fronts. We signed up for $30 million in synergies across these assets. We feel that we are well on track for that, and the team is continuing to identify and ideate and put ideas in the pipeline that we will action as quickly as we can. That has been the course that we are charting, especially given some of the volume pressure that makes all of those ideas even more important to implement quickly.

我很高興我們在所有這些方面都看到了真正積極的成果。我們簽署了價值 3000 萬美元的跨這些資產的協同效應協議。我們認為我們已經步入正軌，團隊正在繼續識別和構思，並將想法放入管道中，我們將盡快採取行動。這就是我們正在規劃的路線，特別是考慮到一些數量壓力使得所有這些想法的快速實施變得更加重要。

All right. Thanks you, and I'll jump back for any follow-ups.

好的。謝謝你，我會跳回來進行任何後續行動。

Thanks, Dan.

謝謝，丹。

Matt Somerville, DA Davidson.

馬特·薩默維爾，地方檢察官戴維森。

And maybe just to review where were APS and MTS. in the quarter with price cost? And does that spread widen or narrow as we look ahead based on the fundamentals you're seeing in the business today?

也許只是回顧一下 APS 和 MTS 的位置。在季度中的價格成本？當我們根據您今天在業務中看到的基本面來展望未來時，這種利差會擴大還是縮小？

Yeah, hey, Matt, so I'll take that one. Yeah, so similar answer to what we've said in the past, right? We continue to have price-cost coverage on the APS side. And then on the MTS side, you know, continued pricing pressure Really, you know, in Q3, we've seen that really all year as competitors are fighting for volumes.

是的，嘿，馬特，所以我就買那個。是的，答案與我們過去所說的非常相似，對吧？我們繼續對 APS 方面進行價格成本覆蓋。然後在 MTS 方面，你知道，持續的定價壓力真的，你知道，在第三季度，我們已經看到這一年四季競爭對手都在爭奪銷量。

And so we've been underpriced cost covered in the MTS side. And, you know, both (inaudible) brands, you know, we are over that 100% coverage. But I don't see that changing in Q4 going forward. And so it's been relatively stable. We keep that pricing stable, I'd say, favorability on the ETS side, it's going to be short on MTS. It's not getting worse. It's not getting better. So as I said earlier, it's really status quo.

因此，我們對 MTS 方面的成本進行了低估。而且，您知道，這兩個（聽不清楚）品牌，您知道，我們的覆蓋率都超過了 100%。但我認為第四季這種情況不會改變。所以它一直相對穩定。我想說的是，我們保持定價穩定，對 ETS 方面有利，而 MTS 方面將會短缺。情況並沒有變得更糟。情況並沒有好轉。正如我之前所說，這確實是現狀。

I think, Kim, you mentioned in your prepared remarks that typically these projects come with an initial parts package provision. if were kind of lower for longer in that business, what does that mean for aftermarket? I guess I'm trying to think about when you look at APS, when you look at even MTS, how sustainable is the growth you're seeing in aftermarket?

我想，金，你在準備好的發言中提到，通常這些項目都會提供初始零件包。如果該業務的價格長期處於較低水平，這對售後市場意味著什麼？我想我正在嘗試思考，當你審視 APS 時，甚至當你審視 MTS 時，你在售後市場看到的成長有多可持續？

And I know the pandemic had contributed to some level of pent-up demand in that regard? Have you worked your way through that that excess, if you will just talk a minute about aftermarket and then I have one other quick follow-up.

我知道疫情在這方面導致了某種程度的被壓抑的需求？您是否已經解決了這個問題？

So Matt, I could provide some color on aftermarket. So this has been a strategic priority for us for obviously some time here, considering the margin benefit we get on aftermarket versus capital. So this quarter was no different than the last several where we're seeing really strong, I'd say, mid- to high-single digit growth year over year on aftermarket revenue.

所以馬特，我可以提供一些有關售後市場的資訊。因此，考慮到我們在售後市場相對於資本獲得的利潤利益，這顯然已經成為我們一段時間以來的策略重點。因此，本季與過去幾季沒有什麼不同，我想說的是，售後市場收入比去年同期出現中高個位數成長。

To your point, we did have pressure in the quarter and that could continue with some of these larger orders getting pushed out because we generally do sell spare part packages with those orders. But some of the tailwinds we have.

就您的觀點而言，我們在本季度確實面臨壓力，而且這種情況可能會持續下去，其中一些較大的訂單會被推遲，因為我們通常會隨這些訂單一起銷售備件包。但我們也有一些順風車。

One, we do have a large install base and so we're seeing the continued benefit of that come through. And then, we're seeing progress certainly in the acquisitions that we've had. We're seeing some of the fundamentals we expected to come through on pricing and volume certainly benefit the year.

第一，我們確實擁有龐大的安裝基礎，因此我們看到了其持續帶來的好處。然後，我們在收購方面確實看到了進展。我們看到我們預計在定價和銷售方面實現的一些基本面肯定有利於今年。

Obviously, with orders how those come out in the next, call it, six months. And again, those spare part packages, that would certainly impact 2025. But some of the fundamentals we put in place and then the install base we feel good about.

顯然，根據訂單，這些產品將在接下來的六個月內出現。再說一遍，這些備件包肯定會影響到 2025 年。但我們實施的一些基礎知識以及我們感覺良好的安裝基礎。

Yeah, and I would just add to that. That said, aftermarket expansion and FHN is a continued area of focus. Remember that we felt that each of the companies, LINXIS and FPM that we acquired, each had a different medicine that we wanted to provide.

是的，我想補充一點。也就是說，售後市場擴張和 FHN 是持續關注的領域。請記住，我們認為我們收購的每家公司（LINXIS 和 FPM）都有我們想要提供的不同藥物。

On the LINXIS side, we wanted to improve our share of aftermarket. On the Schenck side or the FPM side, we wanted to improve the pricing of aftermarket. We have continued to focus and will continue to focus on that. You see that in the results as well. I agree with Bob's assessment on the core business.

在 LINXIS 方面，我們希望提高我們的售後市場佔有率。在 Schenck 方面或 FPM 方面，我們希望提高售後市場的定價。我們一直並將繼續關注這一點。您在結果中也看到了這一點。我同意鮑伯對核心業務的評估。

That said, we are very proactively going out and keeping in touch with customers who are part of the install base, both for ongoing parts and service as well as modernization projects, which are also a key offering that we have in the market to modernize and upgrade lines that are existing.

也就是說，我們非常積極地走出去，與安裝基地的客戶保持聯繫，包括正在進行的零件和服務以及現代化項目，這也是我們在市場上提供現代化和現代化項目的關鍵產品。

And that is also -- those are all three heavy focus areas for proactive selling, which is part of our operating model, as opposed to waiting for the phone to ring. And so those are the actions that I would say we're taking, especially in the face of what we're seeing with some of the delayed parts packages that come with those large orders.

這也是——這些都是主動銷售的三個重點領域，這是我們營運模式的一部分，而不是等待電話響起。因此，這些就是我想說的我們正在採取的行動，特別是面對我們所看到的那些大訂單附帶的一些零件包延遲的情況。

And then just real quick, if you guys could summarize your realized cost synergies in '24 and what is left over in '25 from the acquisitions? And then in addition, how much is realized in '24 leftover for '25 from the MTS. restructuring and any other targeted actions you're taking? Just trying to think about the overall cost profile?

然後很快，你們能否總結一下 24 年實現的成本綜效以及 25 年收購留下的內容？另外，MTS 在 24 年剩餘的 25 年中實現了多少。您正在採取重組和其他有針對性的行動嗎？只是想考慮一下整體成本情況嗎？

Yes. So on the cost side, so we entered the year thinking we'll see about $7 million to $9 million of cost synergies coming from the LINXIS and FPM acquisitions. And I'd say we are certainly trending ahead of that through '24. And so I think certainly we're going to see that run-rate benefit coming through Q4 as well as next year.

是的。因此，在成本方面，我們進入這一年時認為，我們將看到 LINXIS 和 FPM 收購帶來約 700 萬至 900 萬美元的成本協同效應。我想說，到 24 年，我們肯定會領先這一趨勢。因此，我認為我們肯定會看到第四季以及明年的運行率效益。

And then on the MTS side, we're still on pace, and so we expect about $8 million of cost synergies coming through or the benefit coming through this year with an incremental 12 run rate coming through in 2025, and we're right on pace for that. So all restructuring actions will be executed by the end of the year, and we'll see that full benefit coming through next year. Thank you.

然後在 MTS 方面，我們仍然保持著前進的步伐，因此我們預計今年將實現約 800 萬美元的成本協同效應或收益，並在 2025 年實現增量 12 的運行率，我們的目標是正確的步伐。因此，所有重整行動都將在今年年底前執行，我們將在明年看到全部效益。謝謝。

Does that, Matt?

是嗎，馬特？

Yes.

是的。

Okay.

好的。

Jeff Hammond, KeyBank Capital Markets.

Jeff Hammond，KeyBank 資本市場部。

Very good morning, everyone.

大家早安。

Good morning, Jeff.

早安，傑夫。

Just on APS and some of this slowness, deferral, maybe just speak to how this environment is maybe the same or different versus kind of past down cycles? I know you've referenced pipeline and testing being healthy, but maybe just speak to how this cycle feels same or different.

就 APS 和一些緩慢、延遲而言，也許只是說明這種環境與過去的下行週期有何相同或不同？我知道您已經提到過健康的管道和測試，但也許只是談論這個週期的感覺是相同還是不同。

Well, I would say that this still feels different to us. You know, typically when we've gone into a downcycle And keep in mind that the last real -- the last sizable downcycle was 2008, 2009. And then there was a -- I guess I would characterize it as a modest downcycle in 2016.

好吧，我想說這對我們來說仍然感覺不同。你知道，通常當我們進入下行週期時，請記住，最後一次真正的——最後一次大規模的下行週期是 2008 年、2009 年。然後出現了——我想我會將其描述為 2016 年的適度下行週期。

What we would typically see is a slowdown in parts orders, limited quotes coming out, limited test lab activity as the downturn began to happen. Different than those characterizations, we have not seen -- you've heard us talk about the strength of the aftermarket business. You've heard us talk about the fact that the test labs are still very full. And you've heard us talk about the fact that we've got a pretty robust pipeline of quotes that we are continuing to see.

隨著經濟低迷開始發生，我們通常會看到零件訂單放緩、報價有限、測試實驗室活動有限。與這些特徵不同的是，我們還沒有看到——你們已經聽過我們談論售後市場業務的實力。您已經聽過我們談論測試實驗室仍然非常滿的事實。您已經聽過我們談論這樣一個事實，即我們擁有相當強大的報價管道，而且我們仍在繼續看到這一點。

Different is -- now you're seeing elongated decision processes. probably much more exacerbated than what we have historically seen around these decisions. But you also have, I would say, a lot more noise in the system with the various factors that we highlighted in our prepared remarks, interest rate, macroeconomic uncertainty, geopolitical concerns, inflation.

不同的是──現在你看到的是冗長的決策過程。可能比我們歷史上圍繞這些決定所看到的情況更加嚴重。但我想說的是，由於我們在準備好的演講中強調的各種因素，利率、宏觀經濟不確定性、地緣政治擔憂、通貨膨脹，系統中也存在更多噪音。

You've got kind of a bit of a pile-on effect right now that I think are -- especially for midsize projects, I think, is really impacting those decision timelines. That's how I would characterize today versus what we would have historically seen. I have the great fortune of having people on my team who've been through a couple of these and have strong recollections of how things have gone historically and how this feels different than that.

我認為現在有一些疊加效應，尤其是對於中型項目，我認為確實影響了這些決策時間表。這就是我對今天與歷史所看到的情況的描述。我很幸運，我的團隊中有一些人經歷過這樣的事情，並且對歷史上的事情有深刻的回憶，以及這與那的感覺有何不同。

Okay That's helpful. And then just on the acquisition synergies, it sounds like you're running ahead there. Are these kind of pull forward and you're just getting them earlier? Or is there a point where we can say, the synergies -- we're finding more synergies in the $30 million between the two can be upsized Yes.

好的，這很有幫助。然後就收購協同效應而言，聽起來您正在領先。這些是不是一種向前的推動力，而你只是更早地得到它們？或者我們是否可以說，協同效應——我們發現兩者之間的 3000 萬美元可以擴大規模，從而產生更多的協同效應。

Yeah. So as you said today, there are certainly pull forwards. Jeff, I would tell you, though, the teams are actively looking at additional opportunities, and I'd say we fully expect those to come to fruition. So what we see now is pull forward, and then we've got teams focused on not only the cost side, but also commercial harmonization, aftermarket pricing, and other, I'd say, cost opportunities

是的。正如您今天所說，肯定會有進步。傑夫，不過，我想告訴你，團隊正在積極尋找更多機會，我想說，我們完全期望這些機會能夠實現。因此，我們現在看到的是向前推進，然後我們的團隊不僅關注成本方面，還專注於商業協調、售後定價以及其他成本機會

And so what I'd say is that during this implementation, I think as we've done, I would say, we did a good job on the completion of the Coperion integration, better job of Milacron integration, and better still on the integration of the FPM and LINXIS companies. And so what I would say is that we've got a good process for the capture of ideas for managing those projects.

所以我想說的是，在這次實施過程中，我認為正如我們所做的那樣，我想說，我們在完成科倍隆集成方面做得很好，在米拉克龍集成方面做得更好，在整合方面做得更好FPM 和 LINXIS 公司的成員。所以我想說的是，我們有一個很好的流程來捕捉管理這些專案的想法。

We're creating visibility, not just within the operating company that all the way up through the corporate entity. Bob and I review these projects weekly, literally weekly on what their status is. I would say that the process has continued to improve. Once things get to a status where they go through, let's call it a stage gate process so that we can really see if those projects are going to reach the capability to deliver that we expect.

我們正在創造可見性，不僅僅是在經營公司內部，一直到整個公司實體。鮑勃和我每週都會審查這些項目，實際上是每週審查它們的狀態。我想說的是，這個過程一直在不斷改進。一旦事情達到了所經歷的狀態，我們就稱之為階段性流程，以便我們能夠真正了解這些專案是否能夠達到我們預期的交付能力。

As we become more confident, more things reach that kind of stage gate where we're highly confident. It's going to deliver, then we'll share more of that information. Right now, we're heavily committed to making sure that we hit that $30 million target and do it as quickly as we possibly can. I know that when we announced the acquisitions, we said [3 to 5] was our target for achieving those synergies.

當我們變得更有自信時，更多的事情就會到達我們非常自信的階段。它將交付，然後我們將分享更多該資訊。目前，我們全力確保實現 3000 萬美元的目標，並儘快實現。我知道，當我們宣布收購時，我們說過 [3 至 5] 是我們實現這些協同效應的目標。

Obviously, our internal target is to drive faster than that and then to add to the pile. So the first target and the first hurdle that I hold myself and everyone on my team accountable for is getting to that $30 million as as robustly and as quickly as we can, and then we'll continue to communicate as we see other projects that we have high confidence will deliver value. And again, those were cost synergies as opposed to commercial synergies, which obviously we're working on as well.

顯然，我們的內部目標是開得更快，然後再加入佇列。因此，我要求自己和團隊中的每個人負責的第一個目標和第一個障礙是盡可能穩健、快速地實現 3000 萬美元，然後我們將在看到我們正在開發的其​​他專案時繼續溝通。有高度的信心將創造價值。再說一遍，這些是成本協同效應，而不是商業協同效應，顯然我們也在努力解決這個問題。

Okay great and then last one, I mean, it sounds like pricing competition is maybe starting to stabilize a little bit or find a bottom here in the hot runner market. You commented in the Q about the ability of competitors to produce higher quality parts and becoming more capable. Just wondering if that's kind of a stale comment that's been out there and justify -- part of justifying the write-down or if there's anything new or incremental there?

好的，很好，最後一個，我的意思是，聽起來價格競爭可能開始穩定一點，或者在熱流道市場找到底部。您在問題中評論了競​​爭對手生產更高品質零件並變得更有能力的能力。只是想知道這是否是一種陳舊的評論，並證明其合理性 - 證明減記合理性的一部分，或者是否有任何新的或增量的東西？

Yes I don't think there's anything anything new. I think that certainly on the hot runner side, we are seeing pressure of some of our competitors. We're moving up the chain. We're in that premium box of hot runners. And we're seeing some kind of move up, not to the level we are.

是的，我不認為有什麼新的東西。我認為，在熱流道方面，我們確實看到了一些競爭對手的壓力。我們正在向鏈條的上游移動。我們在那個高級熱流道盒子裡。我們看到了某種程度的提升，但沒有達到我們現在的水平。

To mitigate some of that, we're moving down. So we've launched, I'd say, mid-tier hot runners to offer lower priced hot runners and certainly compete at that call it B-plus level. But say nothing new. Yeah, I do think pricing is somewhat stabilized. Again, probably at a lower level than we'd like on the hot runner side.

為了減輕一些影響，我們正在向下移動。因此，我想說，我們推出了中端熱流道，以提供價格較低的熱流道，當然可以在 B+ 級別上進行競爭。但說不出什麼新意。是的，我確實認為價格已經穩定下來。同樣，熱流道方面的水平可能低於我們想要的水平。

Okay. Thanks.

好的。謝謝。

(Operator Instructions) John Franzreb, Sidoti & Company.

（操作員說明）John Franzreb，Sidoti & Company。

Good morning, everyone. And thanks for taking the questions. Most of my questions have been addressed, but I am curious in APS. Is it just the lower intake or has there been deferred deliveries or cancellations in that business.

大家早安。感謝您提出問題。我的大部分問題都已解決，但我對 APS 很好奇。僅僅是攝取量減少還是該業務存在延遲交付或取消的情況？

There have not been cancellations. In terms of delivery, I think we've only seen what we would consider pretty normal, something isn't ready at the site yet or -- because remember, we're going to bring our equipment in after all the site prep is done. So I think what we would characterize it as pretty normal, ebbs and flows of projects.

沒有取消的情況。在交付方面，我認為我們只看到了我們認為非常正常的情況，現場還沒有準備好東西，或者——因為記住，在所有現場準備工作完成後，我們將把我們的設備帶進來。所以我認為我們將其描述為非常正常的現象，即專案的潮起潮落。

You're just working on a multi-billion dollar site project and there are going to be puts and takes on that. But I wouldn't say that there has been anything that has been completely out of the ordinary. And we don't see cancels on those projects.

您正在從事一個價值數十億美元的網站項目，並且將會有相應的投入和承擔。但我不會說有什麼完全不尋常的事。我們沒有看到這些項目被取消。

That's it. All my other questions have been addressed.

就是這樣。我的所有其他問題都已解決。

At this time, we've reached the end of the question-and-answer session. Now I'll turn the floor over to Kim Ryan for closing remarks.

此時，我們的問答環節已經結束了。現在我將請 Kim Ryan 致閉幕詞。

All right. Thanks again, everyone, for joining us on the call today. We appreciate your ownership and interest in Hillenbrand. And we look forward to talking to you again in November with our full year results.

好的。再次感謝大家今天加入我們的電話會議。我們感謝您對 Hillenbrand 的所有權和興趣。我們期待在 11 月再次與您討論我們的全年業績。

Have a great rest of your summer and thanks for joining us this morning.

祝您夏天好好休息，感謝您今天早上加入我們。

This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation. Have a wonderful day.

今天的會議到此結束。此時您可以斷開線路，感謝您的參與。祝你有美好的一天。