Kadant Inc (KAI) 2024 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to Kadant third-quarter 2024 earnings conference call at this time. (Operator Instructions) Please note that today's call is being recorded.

美好的一天，感謝您的支持。歡迎此時參加凱登 2024 年第三季財報電話會議。（操作員說明）請注意，今天的通話正在錄音。

I will now hand the conference over to your speaker host, Michael McKenney, Executive Vice President and Chief Financial Officer. Please go ahead, sir.

我現在將會議交給演講主持人、執行副總裁兼財務長 Michael McKenney。請繼續，先生。

Thank you, Olivia. Good morning, everyone, and welcome to Kadant's third-quarter 2024 earnings call. With me on the call today is Jeff Powell, our President and Chief Executive Officer.

謝謝你，奧莉維亞。大家早安，歡迎參加凱登 2024 年第三季財報電話會議。今天與我一起參加電話會議的是我們的總裁兼執行長傑夫鮑威爾 (Jeff Powell)。

Before we begin, let me read our Safe Harbor statement. Various remarks that we may make today about cadence, future plans and expectations, financial and operating results, and prospects are forward-looking statements for purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995.

在開始之前，讓我先閱讀我們的安全港聲明。我們今天可能發表的有關節奏、未來計劃和預期、財務和經營業績以及前景的各種評論均為前瞻性陳述，旨在遵守 1995 年《私人證券訴訟改革法案》中的安全港條款。

These forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results to differ materially from these forward-looking statements as a result of various important factors, including those outlined at the beginning of our slide presentation and those discussed under the heading Risk Factors in our annual report on Form 10-K for the fiscal year ended December 30, 2023, and subsequent filings with the Securities and Exchange Commission.

這些前瞻性陳述受到已知和未知的風險和不確定性的影響，這些風險和不確定性可能會由於各種重要因素（包括幻燈片演示開頭概述的因素和討論的因素）而導致我們的實際結果與這些前瞻性陳述有重大差異。

In addition, any forward-looking statements we make during this webcast represent our views and estimates only as of today while we may elect to update forward-looking statements at some point in the future. We specifically disclaim any obligation to do so. Even if our views or estimates change during this webcast, we refer to some non-GAAP financial measures.

此外，我們在本次網路廣播中所做的任何前瞻性陳述僅代表我們今天的觀點和估計，而我們可能會選擇在未來某個時候更新前瞻性陳述。我們特別聲明不承擔任何這樣做的義務。即使我們的觀點或估計在此網路廣播期間發生變化，我們也會參考一些非公認會計準則財務指標。

These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is contained in our third-quarter earnings press release and the slides presented on the webcast and discussed in the conference call, which are available in the investor section of our web website at www.kadant.com. Finally, I wanted to note that when we refer to GAAP earnings per share or EPS and adjusted EPS on this call, we're referring to each of these measures as calculated on a diluted basis.

這些非公認會計準則衡量指標並非依照公認會計原則制定。非公認會計原則財務指標與最直接可比較的公認會計原則指標的調節包含在我們的第三季度收益新聞稿以及網絡廣播中展示並在電話會議中討論的幻燈片中，這些內容可以在我們網站的投資者部分中找到網站 www.kadant.com。最後，我想指出的是，當我們在這次電話會議中提及公認會計原則每股收益或每股收益和調整後每股收益時，我們指的是稀釋基礎上計算的每一項指標。

With that, I'll turn the call over to Jeff Powell. We'll give you an update on Kadant's business and future prospects following Jeff's remarks. I'll give an overview of our financial results for the quarter, and we will then have a Q&A session. Jeff?

這樣，我會將電話轉給傑夫鮑威爾。在傑夫發表演說後，我們將向您介紹凱登的業務和未來前景的最新情況。我將概述本季度的財務業績，然後我們將進行問答環節。傑夫？

Thanks, Mike. Hello, everyone. Thank you for joining us this morning to review our third-quarter results and discuss our outlook for the remainder of the year before beginning our Q3 review. I want to share with you that we are hosting an Investor Day to take place on December 12, in New York City.

謝謝，麥克。大家好。感謝您今天早上加入我們，回顧我們的第三季度業績，並在開始第三季度回顧之前討論我們對今年剩餘時間的展望。我想與您分享的是，我們將於 12 月 12 日在紐約市舉辦投資者日。

At this event, we will present our new five-year financial targets and outline our growth initiatives in each of our three operating segments. Mike will provide more details on this during his remarks. Now let's turn to our third-quarter highlights.

在這次活動中，我們將提出新的五年財務目標，並概述我們三個營運部門的成長計畫。麥克將在講話中提供更多相關細節。現在讓我們來看看第三季的亮點。

Third quarter was another record setting performance benefiting from excellent execution across our operating segments and record aftermarket parts revenue. This led to record adjusted EBITDA, record adjusted EBITDA margin, and record adjusted EPS in the third quarter.

第三季的業績再次創下紀錄，這得益於我們各營運部門的出色執行力和創紀錄的售後零件收入。這導致第三季調整後 EBITDA、調整後 EBITDA 利潤率和調整後每股盈餘創歷史新高。

As you know, our aftermarket parts business is one of our core strategic development areas and it is encouraging to see this part of our business continues to thrive. Overall, market demand was stronger in the Americas while demand in Europe and Asia reflected the sluggish economies in those regions.

如您所知，我們的售後零件業務是我們的核心策略發展領域之一，看到這部分業務持續蓬勃發展令人鼓舞。總體而言，美洲市場需求強勁，而歐洲和亞洲的需求反映了這些地區經濟的低迷。

As has been the case throughout 2024, our operations teams around the world delivered exceptional value to our customers. I want to thank them for their outstanding work and the results they generated, not only in the third quarter but throughout the year.

與 2024 年全年的情況一樣，我們在世界各地的營運團隊為我們的客戶提供了卓越的價值。我要感謝他們的出色工作和所取得的成果，不僅是在第三季度，而且是全年。

Turning next to slide 6, I'd like to review our Q3 financial performance. Our Q3 performance was excellent with a number of financial records achieved. Revenue was up 11% compared to the third quarter of 2023 to $272 million and benefited from record aftermarket parts business and contributions from our acquisitions. Solid execution contributed to our record adjusted EBITDA of $63 million and a record adjusted EBITDA margin of 23.3%.

接下來轉到第 6 張投影片，我想回顧一下我們第三季的財務表現。我們的第三季業績非常出色，創下了多項財務記錄。營收較 2023 年第三季成長 11%，達到 2.72 億美元，這得益於創紀錄的售後零件業務和我們收購的貢獻。紮實的​​執行力使我們的調整後 EBITDA 達到創紀錄的 6,300 萬美元，調整後 EBITDA 利潤率創紀錄的 23.3%。

Cash flow from operations and free cash flow were outstanding in the third quarter at $52 million and $48 million respectively, demonstrating the strength of our business model. Bookings increased 15% compared to the same period last year due to our acquisitions and strong activity in North America.

第三季營運現金流和自由現金流分別為 5,200 萬美元和 4,800 萬美元，表現出色，證明了我們業務模式的實力。由於我們的收購和北美地區的強勁活動，預訂量與去年同期相比增加了 15%。

I'll review the performance of our operating segments next, beginning with our flow control segment. Robust market demand for aftermarket parts led to strong revenue performance in our flow control segment in the third quarter, up 7% compared to the same period last year. Bookings were $89 million, up 7% led by strong demand for aftermarket parts which made up 78% of new order activity. Excellent execution in both commercial and operational areas of the business led to record adjusted EBITDA and an adjusted EBITDA margin of 29.4%.

接下來我將回顧我們營運部門的業績，首先是流量控制部門。市場對售後零件的強勁需求帶動了我們的流量控制業務第三季的強勁營收表現，與去年同期相比成長了7%。由於對售後零件的強勁需求，訂單量達到 8,900 萬美元，成長 7%，佔新訂單活動的 78%。業務商業和營運領域的出色執行力帶來了創紀錄的調整後 EBITDA 和 29.4% 的調整後 EBITDA 利潤率。

Many end markets in our flow control segment remain strong and we continue to see good levels of project activity, particularly in the Americas. Project activity in Europe and Asia has moderated and reflects the strong and persistent economic headwinds in those regions.

我們的流量控制領域的許多終端市場仍然強勁，我們繼續看到專案活動的良好水平，特別是在美洲。歐洲和亞洲的計畫活動有所放緩，反映出這些地區強勁且持續的經濟逆風。

In our industrial processing segment, revenue increased 17% to $111 million, led by record aftermarket parts business, which made up 67% of our total revenue in Q3. Bookings also benefited from strong parts demand in this segment. And we're up 27% compared to the same period last year. Adjusted EBITDA was up 41% and our adjusted EBIDA margin was a record 28.7%. Capital project activity is strengthening, and we believe the long-term growth drivers of our end markets remain strong.

在我們的工業加工領域，營收成長了 17%，達到 1.11 億美元，其中售後零件業務創紀錄，占我們第三季總收入的 67%。預訂量也受益於該細分市場強勁的零件需求。與去年同期相比，我們成長了 27%。調整後 EBITDA 成長 41%，調整後 EBITDA 利潤率達到創紀錄的 28.7%。資本項目活動正在加強，我們相信終端市場的長期成長動力仍然強勁。

In our material handling segment, our revenue and bookings benefited from our latest acquisitions. We experienced high demand for aftermarket parts and capital project bookings and our high-performance biller product line was strong in the third quarter. Revenue was up 7% to $63 million led by solid demand for our bulk material handling products, while bookings were up 10% compared to the same period last year. Adjusted EBITDA margin declined by 210 basis points compared to Q3 of last year, largely due to product mix and lower revenue volume in some of our businesses in this segment.

在我們的物料搬運領域，我們的收入和預訂受益於我們最新的收購。我們對售後零件和資本項目預訂的需求很高，我們的高效能記帳產品線在第三季表現強勁。由於對我們的散裝物料搬運產品的強勁需求，營收成長了 7%，達到 6,300 萬美元，而預訂量與去年同期相比成長了 10%。與去年第三季相比，調整後 EBITDA 利潤率下降了 210 個基點，這主要是由於產品組合和該領域部分業務的收入下降。

While we expect demand to stabilize in the near term, we continue to see a high-level activity in the aggregate material handling sector, particularly in North America. As we look ahead to the remainder of 2024 and the full year, we expect to deliver record financial results again. We're seeing a lot of activity around capital projects. And this is expected to be a meaningful contributor to our Q4 new order activity, though the timing of these projects can be uncertain and could shift due to macroeconomic uncertainty or other factors.

雖然我們預計需求在短期內會穩定，但我們仍然看到骨材搬運行業的高水準活動，特別是在北美。展望 2024 年剩餘時間和全年，我們預計將再次實現創紀錄的財務表現。我們看到很多圍繞資本項目的活動。儘管這些項目的時間可能不確定，並且可能由於宏觀經濟不確定性或其他因素而發生變化，但預計這將對我們第四季度的新訂單活動做出有意義的貢獻。

I will now pass the call over to Mike for his review of the Q3 financial performance.

我現在將把電話轉接給麥克，請他對第三季的財務表現進行審查。

Thank you, Jeff. I'll start with our third-quarter performance.

謝謝你，傑夫。我將從我們第三季的業績開始。

Revenue was $271.6 million, up 11% compared to the third quarter '23, including a 12% increase from acquisitions. Gross margin was 44.7% in the third quarter '24, up 140 basis points compared to 43.3% in the third quarter of '23. This increase was principally due to higher margins achieved on capital projects.

營收為 2.716 億美元，比 2023 年第三季成長 11%，其中收購成長 12%。2024年第三季的毛利率為44.7%，比2023年第三季的43.3%上升了140個基點。這一增長主要是由於資本項目實現了更高的利潤。

Another contributing factor was a higher percentage of parts and consumable revenue, which increased to 65% of revenue in the third quarter of '24 compared to 61% in the prior year. The third-quarter gross margins of 44.7% included a 50 basis point negative impact from the amortization of acquired profit and inventory. Excluding this impact, gross margins were up 190 basis points over the third quarter of '23.

另一個影響因素是零件和消耗品收入的比例較高，2024 年第三季度，其占收入的比例從去年的 61% 增至 65%。第三季毛利率為 44.7%，其中包括已獲利和庫存攤提 50 個基點的負面影響。排除此影響，毛利率比 2023 年第三季成長了 190 個基點。

This continues our strong gross margin performance over the quarterly results achieved in '23. SG&A expenses as a percentage of revenue increased to 25.4% in the third quarter of '24 compared to 23.7% in the prior year period, primarily due to our acquisitions, which included non-recurring acquisition-related costs.

這延續了我們 23 年季度業績的強勁毛利率表現。SG&A 費用佔營收的百分比在 2024 年第三季增至 25.4%，而去年同期為 23.7%，這主要是由於我們的收購，其中包括非經常性收購相關成本。

SG&A expenses were $69 million in the third quarter of '24, increasing $11.1 million compared to $57.9 million in the third quarter of '23. This included an increase of $9.7 million from our acquisitions and $1.2 million in acquisition-related costs.

2024 年第三季的 SG&A 費用為 6,900 萬美元，比 2023 年第三季的 5,790 萬美元增加了 1,110 萬美元。其中包括因收購而增加的 970 萬美元以及與收購相關的成本 120 萬美元。

Our GAAP EPS increased 2% to $2.68 in the third quarter compared to $2.63 in the third quarter '23, principally due to higher revenue and gross margins. Our adjusted EPS was a record $2.84 in the third quarter of '24, up 6% compared to $2.69 in the third quarter of '23.

我們的 GAAP 每股盈餘在第三季成長了 2%，達到 2.68 美元，而 2023 年第三季的每股盈餘為 2.63 美元，這主要是由於收入和毛利率的提高。我們的調整後每股收益在 2024 年第三季達到創紀錄的 2.84 美元，比 2023 年第三季的 2.69 美元增加了 6%。

Third quarter of '24 adjusted EPS exceeded the high end of our guidance range by $0.36 due to higher revenue than forecasted, especially at our industrial processing segment. We also had higher-than-expected gross margin.

由於收入高於預期，特別是在我們的工業加工領域，2024 年第三季調整後每股收益超出了我們指導範圍的上限 0.36 美元。我們的毛利率也高於預期。

We had another quarter with record adjusted EBITDA results. Third-quarter adjusted EBITDA was a record $63.3 million, increasing 20% compared to the third quarter '23 due to record performance in our industrial processing and flow control segments. As a percentage of revenue, adjusted EBITDA was a record 23.3% compared to 21.6% in the third quarter '23. This included a record adjusted EBITDA margin of 28.7% in our industrial processing segment.

我們又一個季度的調整後 EBITDA 業績創歷史新高。由於我們的工業加工和流量控制領域創紀錄的業績，第三季調整後 EBITDA 達到創紀錄的 6,330 萬美元，比 2023 年第三季成長 20%。調整後 EBITDA 佔營收的百分比達到創紀錄的 23.3%，而 2023 年第三季為 21.6%。其中，我們的工業加工業務調整後 EBITDA 利潤率為創紀錄的 28.7%。

Our adjusted EBITDA has increased each quarter in '24 with strong contributions from our industrial processing and flow control segments. Our adjusted EBITDA margin of 23.3% in the third quarter '24 represents the first quarter we have exceeded 23%.

我們的調整後 EBITDA 在 2024 年每季都有所成長，這得益於我們的工業加工和流量控制部門的強勁貢獻。2024 年第三季我們調整後的 EBITDA 利潤率為 23.3%，這是我們第一季超過 23% 的結果。

Turning to our cash flows, we had strong cash flows in the third quarter '24, increasing 87% sequentially. Compared to the third quarter '23, operating cash flow increased 12% to $52.5 million. Free cash flow is up 27% to $48.3 million in the third quarter '24 compared to $38.1 million in the third quarter of '23. We paid $10.4 million for acquisitions funded by borrowings and paid down debt by $32 million in the quarter. Our other non-operating uses of cash in the third quarter '24 included $4.2 million for capital expenditures and $3.8 million for a dividend on our common stock.

談到我們的現金流，我們在 2024 年第三季的現金流強勁，比上一季成長了 87%。與 2023 年第三季相比，營運現金流成長 12%，達到 5,250 萬美元。24 年第三季的自由現金流成長了 27%，達到 4,830 萬美元，而 23 年第三季的自由現金流為 3,810 萬美元。我們透過借款支付了 1,040 萬美元的收購費用，並在本季償還了 3,200 萬美元的債務。2024 年第三季我們的其他非經營性現金用途包括 420 萬美元的資本支出和 380 萬美元的普通股股利。

Let me turn next to our EPS results for the quarter. In the third quarter '24, GAAP EPS was $2.68. And after adding back $0.15 of acquisition related costs, adjusted EPS was $2.84. In the third quarter '23, GAAP EPS was $2.63. And after adding back $0.03 of relocation costs and $0.03 of restructuring and impairment costs, our adjusted EPS was $2.69.

接下來讓我談談本季的每股盈餘結果。2024 年第三季度，GAAP 每股盈餘為 2.68 美元。加上 0.15 美元的收購相關成本後，調整後每股收益為 2.84 美元。 2023 年第三季度，GAAP 每股盈餘為 2.63 美元。加上 0.03 美元的搬遷成本以及 0.03 美元的重組和減損成本後，我們調整後的每股收益為 2.69 美元。

As shown in the chart, the increase of $0.15 in adjusted EPS in the third quarter '24 compared to the third quarter '23 included increases of $0.32 due to a higher gross margin percentage and $0.21 from the operating results of our acquisitions, excluding the associated borrowing costs. These increases were partially offset by $0.22 due to higher interest expense, $0.08 due to lower revenue, $0.04 due to a higher tax rate, $0.03 due to higher operating expenses, and $0.01 due to higher weighted average shares outstanding. The operating results, excluding acquisition-related costs from our acquisitions, contributed $0.21 to our third-quarter results.

如圖所示，與23 年第三季相比，24 年第三季調整後每股收益增加了0.15 美元，其中包括由於毛利率較高而增加了0.32 美元，以及我們收購的經營業績增加了0.21 美元，不包括相關的借貸成本。這些增長被利息費用增加導致的 0.22 美元、收入減少導致的 0.08 美元、稅率上漲導致的 0.04 美元、營運費用增加導致的 0.03 美元以及加權平均已發行股票增加的 0.01 美元部分抵消。不包括收購中與收購相關的成本的營運表現為我們第三季業績貢獻了 0.21 美元。

Recent acquisitions are included in each operating segment and the integration process is going well. Collectively included in all the categories, I just mentioned, was an unfavorable foreign currency translation effect of $0.03 in the third quarter '24 compared to the third quarter of last year due to the strengthening of the US dollar against certain currencies.

最近的收購已包含在每個營運部門中，並且整合過程進展順利。我剛才提到的所有類別中，由於美元兌某些貨幣走強，24 年第三季與去年第三季相比，不利的外幣換算影響為 0.03 美元。

Looking at our liquidity metrics on slide 15, our cash conversion days, which we calculate by taking days in receivables plus days in inventory and subtracting days in accounts payable, decreased to 129 at the end of the third quarter '29 compared to 138 in the prior year quarter. Working capital as a percentage of revenue increased to 17.2% in the third quarter '24 compared to 15.4% in the third quarter '23 due to the lack of a full year of revenue in the calculation for our recent acquisitions.

看看投影片15 上我們的流動性指標，我們的現金轉換天數（我們透過應收帳款天數加上庫存天數並減去應付帳款天數來計算）在29 年第三季末下降至129 天，而2019 年第三季末為138 天。由於我們最近的收購計算中缺少全年收入，營運資本佔收入的百分比在 24 年第三季增至 17.2%，而 23 年第三季為 15.4%。

Our net debt, that is debt less cash, decreased $33.4 million or 12% sequentially to $236.7 million. Our leverage ratio, calculated in accordance with our credit agreement, decreased to 1.13 compared to 1.22 at the end of the second quarter '24.

我們的淨債務（即債務減去現金）季減 3,340 萬美元，或 12%，至 2.367 億美元。根據我們的信貸協議計算，我們的槓桿率從 2024 年第二季末的 1.22 降至 1.13。

At the end of the third quarter '24, we had $85 million of committed borrowing capacity and an additional $200 million of uncommitted borrowing capacity under our revolving credit facility. In addition, our strong balance sheet and low leverage ratio would allow us to access additional sources of capital, if needed.

截至2024年第三季末，我們的循環信貸安排下擁有8,500萬美元的承諾借款能力和另外2億美元的未承諾借款能力。此外，我們強大的資產負債表和低槓桿率將使我們能夠在需要時獲得額外的資本來源。

Now turning to our guidance for the fourth quarter and full year '24, we've had a strong financial performance to date in '24. In the fourth quarter, we expect a sequential increase in industrial demand for our capital equipment. However, the majority of these projects will not ship until '25. Lower gross margins due to the mix of projects in the period will contribute to comparatively lower earnings for the fourth quarter.

現在轉向我們對 24 年第四季和全年的指導，我們在 24 年迄今擁有強勁的財務業績。在第四季度，我們預計工業對我們的資本設備的需求將持續成長。然而，這些項目中的大多數要到 2025 年才會發貨。由於該期間的項目組合導致毛利率較低，這將導致第四季度的收益相對較低。

I should note here that the timing of capital shipments can shift by quarter creating both upside opportunity and downside risk with our fourth-quarter expectations. We are narrowing our full-year revenue guidance range $1.047 billion to $1.055 billion from $1.045 billion to $1.065 billion.

我應該在這裡指出，資本運輸的時間可能會按季度變化，根據我們第四季度的預期創造上行機會和下行風險。我們將全年營收指引範圍從 10.45 億美元縮小到 10.65 億美元，從 10.47 億美元縮小到 10.55 億美元。

We are raising our adjusted EPS guidance and now expect $9.93 to $10.13, up from $9.80 to $10.05 for '24, which excludes $0.68 of acquisition-related costs. We expect GAAP EPS of $9.25 to $9.45, revised from our previous guidance of $9.20 to $9.45 which included acquisition-related costs of $0.60.

我們正在上調調整後每股收益指引，目前預計 24 年的預期為 9.93 美元至 10.13 美元，從 9.80 美元至 10.05 美元上調，其中不包括 0.68 美元的收購相關成本。我們預計 GAAP 每股收益為 9.25 美元至 9.45 美元，從我們先前指導的價值 9.20 美元至 9.45 美元修正，其中包括 0.60 美元的收購相關成本。

Our 2024 guidance includes a $0.17 negative effect from foreign currency translation compared to the guidance given at the beginning of the year. Future actions by the central banks may impact the US dollar and other currencies, which could have an impact on our guidance.

與年初給出的指導相比，我們的 2024 年指引包括外幣換算帶來的 0.17 美元的負面影響。各國央行未來的行動可能會影響美元和其他貨幣，這可能會對我們的指導產生影響。

Both GAAP and adjusted EPS guidance are calculated using our initial estimates of purchase accounting adjustments, which are subject to change as we review and finalize the valuation work for our '24 acquisitions. Our revenue guidance for the fourth quarter '24 is $252 million to $260 million and our adjusted EPS guidance is a $1.90 to $2.10 which excludes $0.05 of amortization expense associated with acquired profit and inventory and $0.04 related to acquired backlog.

GAAP 和調整後每股盈餘指引均使用我們對收購會計調整的初步估計進行計算，隨著我們審查和最終確定 24 年收購的估值工作，這些估計可能會發生變化。我們對2024 年第四季的營收指引為2.52 億至2.6 億美元，調整後的每股盈餘指引為1.90 至2.10 美元，其中不包括與獲得的利潤和庫存相關的0.05 美元攤銷費用以及與取得的積壓相關的0.04 美元。

We currently anticipate gross margins for '24 will be 44% to 44.5%. This includes a 40 basis point negative impact from $4.8 million of amortization expense associated with acquired profit and inventory. We anticipate fourth quarter gross margin will be in the low- to mid-43% range, primarily due to the mix of projects. We expect SG&A for '24 will be approximately 26.7% of revenue. This includes a 50 basis point negative impact from onetime acquisition related costs of $5.4 million.

我們目前預計 24 年毛利率將為 44% 至 44.5%。這包括與已獲利和庫存相關的 480 萬美元攤銷費用帶來的 40 個基點的負面影響。我們預計第四季度的毛利率將在 43% 的低至中區間，這主要是由於項目的混合。我們預計 24 年的銷售及管理費用將佔營收的 26.7% 左右。其中包括 540 萬美元一次性收購相關成本帶來的 50 個基點負面影響。

We now expect net interest expense of approximately $18.5 million for '24, and we expect our tax rate for the fourth quarter will be approximately 27.5% to 28%. I hope these guidance comments are helpful.

我們現在預計 24 年的淨利息支出約為 1,850 萬美元，我們預計第四季的稅率約為 27.5% 至 28%。我希望這些指導意見對您有所幫助。

And finally, as Jeff mentioned, we'll be hosting an Investor Day on December 12 at the Lotte New York Palace Hotel in New York City. This event is a great opportunity for attendees to hear from leaders in each of our major product lines and they will discuss market trends and growth opportunities and you'll be able to view product demonstrations.

最後，正如傑夫所提到的，我們將於 12 月 12 日在紐約市樂天紐約皇宮酒店舉辦投資者日活動。此次活動為與會者提供了聆聽我們各主要產品線領導者演講的絕佳機會，他們將討論市場趨勢和成長機會，您也可以觀看產品展示。

We'll provide an update on our strategic growth initiatives including acquisitions and our 80/20 program. We'll also update you on cadence performance against the financial goals we set at our last Investor Day in 2019 and outline our new five-year financial goals. We look forward to seeing you there.

我們將提供有關我們策略性成長計劃的最新信息，包括收購和 80/20 計劃。我們還將根據我們在 2019 年最後一個投資者日設定的財務目標向您通報節奏表現的最新情況，並概述我們新的五年財務目標。我們期待在那裡見到您。

I'll now turn the call back over to the operator for our questions. Liv?

我現在將把電話轉回給接線員詢問我們的問題。麗芙？

(Operator Instructions) Gary Prestopino, Barrington.

（操作員說明）Gary Prestopino，Barrington。

Good morning, Jeff and Mike. A couple of questions. First of all, for the various divisions, flow control, industrial material handling, can you give us the percentage of aftermarket parts that were in the prior year's Q3? Just want to get an idea of how they've grown.

早安，傑夫和麥克。有幾個問題。首先，對於各部門，流量控制，工業物料搬運，您能給我們上一年第三季售後零件的百分比嗎？只是想了解他們是如何成長的。

Yeah. Let's see. So of course, this is all in. So for flow control, this year -- now you're talking revenue, Gary.

是的。讓我們來看看。當然，這一切都在。因此，對於流量控制，今年——現在你談論的是收入，加里。

Yes. Yes.

是的。是的。

Revenue, the parts were 70% versus 68% in the comparing quarter last year. In industrial processing, it was 67% compared to 60% last year. And in material handling, it was 55% compared to 53% last year.

零件收入佔比為 70%，而去年同期為 68%。在工業加工方面，這一比例為 67%，而去年為 60%。在物料搬運方面，這一比例為 55%，而去年為 53%。

Okay. Thank you. And then can you just -- if you're looking at the fourth quarter, can you just maybe very quickly go over some of the puts and takes that you're seeing out there as it regards to the three segments?

好的。謝謝。然後，如果您正在關注第四季度，您是否可以快速瀏覽一下您在這三個部分中看到的一些看跌期權和看跌期權？

Well, I'll just address that very broadly. I'd say, for the fourth quarter, I'd say we're being conservative, in case some capital shipments are delayed into '25. I'm talking to the people in the field. There was a little bit of a concern that some customers may ask for a project to get shipped in the first quarter '25 versus fourth quarter. So we wanted to -- I wanted to be conservative in that regard.

好吧，我會非常廣泛地解決這個問題。我想說，對於第四季度，我想說我們是保守的，以防一些資本發貨被推遲到 25 年。我正在和現場的人交談。有人擔心一些客戶可能會要求項目在 25 年第一季（而不是第四季度）發貨。所以我們想——我想在這方面保持保守。

And I'd also say, on the parts and consumables front, we've had a very good year-to-date performance and the fourth quarter can be a little bit of a wild card. It can be a bit challenging to peg -- this is nothing unusual. This is kind of standard fourth quarter stuff for us. So there's a little bit of uncertainty as to whether customers will continue buying as they have through the year or even sometimes buying extra.

我還想說，在零件和消耗品方面，我們今年迄今的表現非常好，第四季可能有點不確定。釘住可能有點困難——這並不罕見。這對我們來說是標準的第四季內容。因此，客戶是否會像全年一樣繼續購買，甚至有時會額外購買，存在一些不確定性。

So if they've used their maintenance budgets, maybe a little softer in the fourth quarter. And if they have extra in their maintenance budgets, we may get a little uplift. So a little bit of a kind of mixed bag on that one.

因此，如果他們用完了維護預算，第四季的預算可能會稍微軟一點。如果他們的維護預算有額外的，我們可能會得到一點提升。所以這個問題有點魚龍混雜。

Okay. But just going through my notes, it seems like just what I jotted down for each segment, that the capital project activity is going to be pretty good in the US and North America but still kind of sluggish in Europe and Asia. Is that kind of a correct assumption?

好的。但只要瀏覽一下我的筆記，似乎就像我為每個部分記下的那樣，美國和北美的資本項目活動將相當不錯，但歐洲和亞洲的資本項目活動仍然有點低迷。這是一個正確的假設嗎？

Yes, that's correct.

是的，這是正確的。

Okay. And just lastly, how does the pipeline look for any future acquisitions at this point?

好的。最後，目前管道如何尋找未來的收購？

So I think, we've mentioned through most of the year that our corporate development group has been quite busy. I would say there's been very strong activity, certainly relative to the last few years and that hasn't really slowed down. And I think, what the bankers are telling us is that next year is going to be even stronger. So it's a pretty active market out there right now.

所以我認為，我們在這一年的大部分時間都提到我們的企業發展團隊非常忙碌。我想說的是，與過去幾年相比，活動非常強勁，而且並沒有真正放緩。我認為，銀行家告訴我們的是，明年將會更加強勁。所以現在這是一個非常活躍的市場。

The challenge for us is always the same. First, finding something that's a good strategic fit that meets our -- the attributes we're looking and then being able to get it at what we think is a reasonable price. And that ultimately is the big challenge, is that beginning at what we think is a fair price. But it’s a very -- I would say it’s a pretty robust market out there right now, a lot of activity.

我們面臨的挑戰始終是相同的。首先，找到符合我們正在尋找的屬性的良好策略契合點，然後能夠以我們認為合理的價格獲得它。最終，這是一個巨大的挑戰，那就是從我們認為公平的價格開始。但我想說，目前這是一個非常強勁的市場，有很多活動。

Kurt Yinger, DA Davidson.

庫爾特·英格，DA​​ 戴維森。

Great. Thanks, and good morning, everyone.

偉大的。謝謝，大家早安。

It sounds like you do expect a pickup in capital equipment bookings in Q4. Wondering if you could maybe just directionally talk about the magnitude that you're anticipating as well as whether there's any kind of seasonal factors in there or if you think that might represent -- I don't want to be too dramatic, but an inflection and something that could sustain going into next year.

聽起來您確實預計第四季度資本設備預訂量會增加。想知道您是否可以直接談論您預期的規模以及其中是否存在任何季節性因素，或者您認為這可能代表 - 我不想太戲劇性，而是一種變化以及可以持續到明年的事情。

Yeah, I don't think we're -- we expect to see a step change. We think things are strengthening. As we talk to our customers, they're saying that they think things are going to really start to improve in the second half of next year and they're -- and then into '26, they expect '26 to be pretty strong. But it's going to be a slow climb here, I think, the next few quarters. So we're talking about -- we expect an increase, but it's not going to be a significant increase. It's going to be an incremental increase. And it should continue to build as people start to get comfortable.

是的，我不認為我們希望看到一步改變。我們認為事情正在加強。當我們與客戶交談時，他們說他們認為明年下半年情況會真正開始改善，然後進入 26 年，他們預計 26 年會非常強勁。但我認為，接下來的幾個季度，這將是一個緩慢的攀升。所以我們正在談論——我們預計會增加，但不會是顯著增加。這將是一個增量的成長。隨著人們開始適應，它應該會繼續發展。

I think, a little bit would depend on what the Fed does in the next couple meetings they have. And frankly, I think, everybody's right now sitting on their hands a little bit waiting to see the outcome of the election in the US. China is putting together another stimulus package to try to get things growing there. And then Europe, it depends on, of course, which country you're looking at. But they're hopefully bottoming out. They're going to start to make some investments.

我認為，這在一定程度上取決於聯準會在接下來的幾次會議上會做什麼。坦白說，我認為現在每個人都在等待美國大選的結果。中國正在製定另一項刺激計劃，試圖促進那裡的經濟成長。然後是歐洲，當然，這取決於您所關注的是哪個國家。但他們希望觸底反彈。他們將開始進行一些投資。

We've seen this before when investments get quiet and it can't last forever because the equipment just continues to wear out. That's why our parts and consumable business has been so strong. Record rates is because they're running equipment longer than they traditionally would. So at some point, they're going to have to start making investments. And what we're hearing from the marketplace is they're going to start strengthening and they're really expecting the back half of next year to really start to see a market improvement.

我們以前見過這種情況，當投資變得平靜時，它不會永遠持續下去，因為設備會繼續磨損。這就是我們的零件和消耗品業務如此強勁的原因。創紀錄的速度是因為他們運行設備的時間比傳統上要長。因此，在某個時候，他們將不得不開始進行投資。我們從市場上聽到的是，他們將開始走強，他們真的預計明年下半年市場將真正開始改善。

Got it. Okay. I appreciate that. And I think it's pretty clear, geographically, where the pockets of strength and weakness are. I guess, from an end market perspective, what areas of the portfolio stand out in terms of where you see particularly compelling capital opportunities going into next year.

知道了。好的。我很欣賞這一點。我認為從地理上看，優勢和劣勢在哪裡是非常清楚的。我想，從終端市場的角度來看，投資組合的哪些領域在明年特別引人注目的資本機會方面表現突出。

The market that has continued to surprise us with its strength has been the OSB market, the oriented strandboard market. In fact, we just booked another new mail order today this morning about an hour before the call started. So it's one of these situations where it just continues to push through around the world and we're pretty strong globally.

OSB市場，即定向刨花板市場，一直以其強勁的實力不斷讓我們感到驚訝。事實上，我們今天早上在通話開始前大約一個小時剛剛預訂了另一個新的郵購。因此，這是其中一種情況，它繼續在世界範圍內蔓延，而我們在全球範圍內相當強大。

Of course, we have -- our installed base in China continues to increase as does in North America and Europe. So that's probably the strongest. I would say, packaging, certainly in the parts and consumables side, it's held up quite well. So we've been quite pleased with that. Capital has been slower, for sure.

當然，我們在中國的安裝基礎不斷增加，北美和歐洲也是如此。所以這可能是最強的。我想說，包裝，當然在零件和消耗品方面，它保持得很好。所以我們對此非常滿意。資本的速度肯定變慢了，這是肯定的。

And then we have other smaller markets that are doing well. The metals market, defense -- frankly, we we've got increasing exposure to the defense market, and that's growing. So there's a lot of kind of what we call industrial markets that are starting to show some renewed strength.

然後我們還有其他表現良好的較小市場。金屬市場、國防——坦白說，我們對國防市場的曝險越來越大，而且還在成長。因此，有許多我們所說的工業市場開始顯示出一些新的實力。

Okay. Got it. And Mike, I know we talked about a little bit last quarter but capital equipment sales continue outpaced bookings by a pretty wide margin. Is that just the work down of kind of the backlog? And is that something that you would still expect will normalize as we move into next year? Or how long could that dynamic persist for in your mind?

好的。知道了。麥克，我知道我們在上個季度討論過一些問題，但資本設備銷售繼續大幅超過預訂。這只是積壓的工作嗎？當我們進入明年時，您是否仍然期望這種情況會正常化？或者這種動力能在你的腦海中持續多久？

Yeah. You're -- it's just as we discussed, Kurt. Yeah, we -- that certainly happened here in the third. We may get a little bit of that again in the fourth. And then I'd say, as we go into '25, it should be relatively normalized, while it's kind of worked through the access we had.

是的。你——正如我們討論的那樣，庫爾特。是的，我們——這確實發生在第三節。我們可能會在第四節再次遇到這樣的情況。然後我想說，當我們進入 25 年時，它應該相對正常化，同時它是透過我們擁有的存取權限來實現的。

Okay. Perfect. And then just lastly on the gross margin front, obviously, very strong performance again this quarter. Mix is one element. But the margins on the capital side seems like it's been the biggest upside surprise. How sustainable is that? And what would you attribute that to in terms of what's driven the upside there?

好的。完美的。最後，在毛利率方面，顯然本季的表現再次非常強勁。混合是一個要素。但資本方面的利潤率似乎是最大的上行驚喜。這有多可持續？您認為推動上漲的因素是什麼？

Well, it's a great question. I would say, there's a component of that, Kurt, to be quite frank on it, can be mix, the mix of the capital project. So when you take -- we take very large capital projects that will oftentimes create a little pressure on the gross margin performance, but you get better operating leverage. So you get a payoff at the end.

嗯，這是一個很好的問題。我想說，庫爾特，坦白說，其中有一個組成部分可以是混合的，資本項目的混合。因此，當我們採取非常大的資本項目時，這些項目通常會對毛利率表現造成一點壓力，但您會獲得更好的營運槓桿。所以你最終會得到回報。

So, I think what's -- the projects that are shipping now, I'd say, are not the large capital projects. And I would say we've picked up a little bit from commodity prices coming down. And I think, frankly, the 80/20 exercise has been helpful in terms of what we're achieving on the margin front. So I think there's been -- as is almost always the case. It's never one particular factor. It's several things.

所以，我認為現在正在交付的專案不是大型資本專案。我想說的是，我們已經從大宗商品價格的下跌中得到了一些。坦白說，我認為 80/20 的練習對於我們在利潤方面的成就很有幫助。所以我認為一直以來都是如此——幾乎總是如此。這從來都不是一個特定因素。這是幾件事。

But I'm very happy with the gross margin performance this year. We've outperformed '23 every quarter this year. And frankly, we've outperformed our own forecasting expectations every quarter.

但我對今年的毛利率表現非常滿意。今年我們每季的表現都優於 23 年。坦白說，我們每季的表現都超出了我們自己的預測預期。

(Operator Instructions) Ross Sparenblek, William Blair.

（操作說明）Ross Sparenblek、William Blair。

Hey. Good morning, guys. Hey, can you help us out with the backlog in the quarter? I know there's been some M&A impact here in the first half of the year. Just want to make sure we're on the same page.

嘿。早安，夥計們。嘿，你能幫我們解決本季的積壓嗎？我知道今年上半年這裡產生了一些併購影響。只是想確保我們意見一致。

Yeah. As we stand right now, Ross, it's at $285 million.

是的。羅斯，目前我們的估值為 2.85 億美元。

Okay. And then, I mean, give the sense here too that kind of $250 million threshold for the fourth quarter on orders might come in a little lower than that, just depending on timing. And then maybe second half of next year, we kind of stabilize and book to bill stabilizes.

好的。然後，我的意思是，第四季 2.5 億美元的訂單門檻可能會比這個低一點，這取決於時間。然後也許到明年下半年，我們就會穩定下來，預訂量也會穩定下來。

Yeah, I mean, I'm always careful not to go too far on my forecasting on the bookings front. But those aren't bad markers. Certainly, we're anticipating sequential increase. But to your point, let's say using the $250 million number, we would -- depending on with the guidance range at $252 million to $260 million, that would imply, as I mentioned to Kurt a moment, a little more consumption of the backlog.

是的，我的意思是，我總是小心翼翼地避免預訂方面的預測走得太遠。但這些都不是壞標記。當然，我們預期會出現連續成長。但就你的觀點而言，假設使用2.5 億美元的數字，我們將- 取決於2.52 億美元至2.6 億美元的指導範圍，這意味著，正如我向庫爾特提到的那樣，積壓的消耗會更多一些。

Okay? I mean, you guys, give yourself more credit. You're a better forecaster than you let on. Looking at the capital equipment orders of $67 million in the third quarter, give us a sense of price and volume and if there's any impact from steel pass through.

好的？我的意思是，你們，給自己更多的信任。你的預測能力比你表現出來的還要好。看看第三季 6700 萬美元的資本設備訂單，讓我們了解價格和數量，以及鋼鐵轉手是否有任何影響。

I don't think there was anything special in terms of what transpired in the third quarter, frankly.

坦白說，我認為第三季發生的事情沒有什麼特別的。

It kind of sounded like maybe demand is picking up because, still to come in, so maybe there's a little bit of price, but volume was still pretty consistent. Nothing to read into there?

聽起來好像需求正在回升，因為仍有待進入，所以可能會有一點價格，但成交量仍然相當穩定。那裡沒什麼好讀的？

Yeah, I think so. I think know prices -- as you know with the capital equipment, you kind of collect your -- the current input cost when you bid these projects. And so they tend not to get too far out of whack with the actual commodity prices that we're experiencing.

是的，我想是的。我認為了解價格 - 正如您所知道的資本設備一樣，當您投標這些項目時，您會收集當前的投入成本。因此，他們往往不會與我們正在經歷的實際商品價格相差太遠。

All right. And then, maybe just the mix of kind of greenfield activity that you're seeing in the order book versus kind of the maintenance cycle and where we're at today.

好的。然後，也許只是您在訂單簿中看到的未開發活動與維護週期以及我們今天所處的位置的混合。

Yeah, I think, as you would expect, an awful lot of the capital is replacements and repairs with fewer greenfield. Of course, the majority of the greenfield are happening in the developing world, with Asia being the largest market there has been quieter. And we're certainly still booking greenfield projects there, but it's certainly not as strong as it had been.

是的，我認為，正如你所期望的，大量資金用於更換和維修，而綠地較少。當然，大部分綠地都發生在發展中國家，而亞洲作為最大的市場則比較安靜。我們當然仍在預訂那裡的綠地項目，但它肯定不如以前那麼強勁。

The one exception is we are seeing some kind of greenfield on the wood side. So that's -- I mentioned earlier, the OSB market tends to be probably the market that has endured the best during this time. I would say the industrial markets globally have been pretty slow. I mean, this has been -- the North American economy continued to grow but it's been an awful lot on the service side. And when you look at capital equipment, durable goods, it's been -- take strip cards out. It's been sluggish.

唯一的例外是我們在樹林一側看到了某種綠地。所以，我之前提到過，OSB 市場可能是這段時間表現最好的市場。我想說，全球工業市場發展相當緩慢。我的意思是，北美經濟持續成長，但服務業成長非常快。當你觀察資本設備、耐用品時，你會發現，把脫衣卡拿出來。一直很遲緩。

And so we are actually quite pleased that we've held up as well as we have. And as I said, the wood side, probably OSB, in particular, has probably endured the best of all those markets.

所以我們實際上很高興我們能堅持到現在。正如我所說，木材方面，尤其是定向刨花板，可能在所有這些市場中表現最佳。

Yeah, I mean, I was kind of curious to hear you say that the P&C had been strong around packaging, but I seriously gotten the sense that the OCC capital was also doing fairly well and signs of inflection.

是的，我的意思是，我很好奇聽到你說 P&C 在包裝方面表現強勁，但我認真地感覺到 OCC 資本也表現得相當不錯，並且有拐點的跡象。

Yeah. I don't know -- we're not ready to declare victory yet that we've got back to robust demand. It's held up okay. And the parts and consumables have been very good. I think I mentioned in the last call, one of the things we've benefited from is that the percent of paper and packaging being made from recycled fiber is at 44% this year.

是的。我不知道——我們還沒有準備好宣布勝利，我們已經恢復了強勁的需求。堅持下來了還好而且零件和消耗品都非常好。我想我在上次電話會議中提到過，我們受益的一件事是今年由再生纖維製成的紙張和包裝的百分比為 44%。

And to give you a sense of that, in 2000, it was 25%. So it has grown. The percentage of paper and packaging being made from recycled fiber continues to grow and it is at a record level.

為了讓大家感受這一點，2000 年，這個比例是 25%。所以它已經成長了。由再生纖維製成的紙張和包裝的比例持續增長，並達到創紀錄的水平。

And of course, as you know, that's our -- our focus is on the recycled side. So we clearly have benefited, and that's why you see the parts and consumables being high, continuing to grow is because more and more of the paper packaging being produced is coming from recycled fiber.

當然，如您所知，我們的重點是回收方面。所以我們顯然已經受益，這就是為什麼你看到零件和消耗品很高，持續成長是因為越來越多的紙包裝生產來自再生纖維。

And so -- and that -- I suspect that will probably continue. There's a pretty decent price difference between recycled fiber and virgin pulp. And most of the new capacity that's come online -- in fact, almost all of it has been recycled fiber. So they're taking some old pulp production offline and bringing on recycled fiber capacity. And so we'll continue to benefit from that.

所以——而且——我懷疑這種情況可能會繼續下去。再生纖維和原生紙漿之間存在相當大的價格差異。大部分新增產能——事實上，幾乎都是再生纖維。因此，他們正在關閉一些舊紙漿生產，並增加再生纖維產能。因此，我們將繼續從中受益。

That's very helpful. Maybe just one more. Think about P&C, any updates on the utilization rates by region. Seems like maybe Europe was characterized as decelerating. It looks like APAC was searching for a bottom, previously. And again, you know --

這非常有幫助。也許只剩下一個了。考慮一下 P&C，以及按地區劃分的利用率的任何更新。看來歐洲可能被認為是減速。此前，亞太地區似乎正在尋找底部。再說一次，你知道--

I mean, it's -- America has -- North America has held up reasonably well. I would say Asia is still slow. China is still in the kind of mid-60%s, maybe higher 60%s, now depending on which region you're looking at. It varies a little bit in Europe, but Europe is kind of in the 70%s and 80%s, again depending on which area you're looking at.

我的意思是，北美的表現相當不錯。我想說亞洲仍然緩慢。中國仍處於 60% 左右，甚至可能高於 60%，具體取決於您所關注的地區。歐洲的情況略有不同，但歐洲大約在 70% 和 80% 之間，這又取決於您所關注的地區。

So North America has clearly held up the best. It's not a big surprise. If you just look at GDP growth, paper is pretty closely correlated, and packings, closely correlated to GDP growth. So America has done well and it's held up the best. They've done a better job, I think, in rationalizing production with mergers and acquisitions. And so they've been able to keep their operating rates up higher than Europe and certainly higher than in Asia.

因此，北美顯然表現最好。這不是什麼大驚喜。如果你只看 GDP 成長，你會發現紙張與 GDP 成長密切相關，而包裝則與 GDP 成長密切相關。所以美國做得很好，而且表現最好。我認為，他們在透過併購實現生產合理化方面做得更好。因此，他們能夠維持高於歐洲的開工率，當然也高於亞洲。

All right. So, presumably, it sounds like no news for next year on P&C.

好的。因此，明年的財產險和意外險似乎沒有任何消息。

I think our customers are -- our packaging customers and paper customers are telling us they expect to see things strengthen next year and they're really hoping the back half, the second -- the second half of the year is going to be much stronger and then they're all getting ready for '26, which they seem to think is going to be a pretty robust year. So they'll start to make investments next year to get ready for that.

我認為我們的客戶——我們的包裝客戶和紙張客戶告訴我們，他們預計明年情況會有所好轉，他們真的希望下半年、下半年——下半年會更加強勁然後他們都在為26 年做好準備，他們認為這將是非常強勁的一年。因此，他們將從明年開始進行投資，為此做好準備。

Kurt Yinger, DA Davidson

庫爾特·英格，DA​​ 戴維森

Great. Thanks. Just two quick ones. First, it looked like FX was maybe $1 million headwind or so in Q3. Is that right, Mike? And how are you thinking about -- or, I guess, assuming an impact in terms of Q4?

偉大的。謝謝。就兩個快的。首先，看起來第三季外匯可能面臨 100 萬美元左右的逆風。是這樣嗎，麥克？您如何考慮——或者，我猜，假設對第四季度的影響？

Yeah, you're right. Kurt. Rounded, it's $1 million. So it was unfavorable $1 million. And right now, with the rates we're using, we're actually anticipating Q4 to be favorable.

是的，你是對的。庫爾特.四捨五入後為 100 萬美元。所以100萬美元是不利的。現在，根據我們正在使用的利率，我們實際上預計第四季度將是有利的。

Got it. Okay, perfect. And then you've grown that, call it, industrial bucket in terms of the sales mix the last several years. Can you maybe just update us on the biggest components within there at this stage and how that piece is maybe trending relative to some of the traditional forest products end markets?

知道了。好的，完美。然後，就過去幾年的銷售組合而言，你已經成長了，可以稱之為工業桶。您能否向我們介紹現階段最大的組件的最新情況，以及該組件相對於一些傳統林產品終端市場的趨勢如何？

Yeah, I mean, I think the flow control is where we have the most opportunities, and we serve the broadest range of markets there. And after packaging, I think, food, metals, and defense are the next three big ones. There's a lot of them. The other is alternative energy, things like that, that have grown. But I think those are the big markets there.

是的，我的意思是，我認為流量控制是我們擁有最多機會的領域，我們為那裡最廣泛的市場提供服務。在包裝之後，我認為食品、金屬和國防是接下來的三大領域。有很多。另一個是替代能源，類似的東西，已經成長。但我認為這些是那裡的大市場。

On the material handling side, I would say that our baler business has continued to do quite well as more and more of the road is separating and trying to recapture and recycle material, so that it continues to grow globally.

在物料搬運方面，我想說，我們的打包機業務繼續表現良好，因為越來越多的道路正在分離並試圖重新捕獲和回收材料，從而使其在全球範圍內繼續增長。

And then on the bulk material handling side, of course, you've got the -- in America, in particular, which is where we're strong, you've got the Infrastructure Bill, you've got the Chips Act. So those are big drivers for those markets.

當然，在散裝材料處理方面，你有——特別是在美國，這是我們的強項，你有基礎設施法案，你有晶片法案。因此，這些是這些市場的重要驅動力。

Got it. And just to sneak one more in, and maybe I should know the answer to this. But do you guys have any specific exposure within box plants? Obviously, a lot at the middle level, but just curious what kind of you're selling in there?

知道了。只是為了再偷偷溜進去一次，也許我應該知道這個問題的答案。但是你們對箱式植物有什麼具體的了解嗎？顯然，很多處於中等水平，但只是好奇你在那裡賣什麼樣的東西？

Yeah, balers. I mean, in any box plant, they've got a lot of packaging that they got to handle and waste package to dispose-off. And so that's a big market for us -- is selling balers into them.

是的，打包機。我的意思是，在任何盒子工廠中，他們都有大量需要處理的包裝和需要處理的廢物包裝。所以這對我們來說是一個很大的市場——向他們出售打包機。

(Operator Instructions) I'm showing no further questions in the Q&A queue at this time. I will now turn the call back over to Mr. Jeff Powell for any closing remarks.

（操作員說明）目前我在問答隊列中沒有顯示任何其他問題。我現在將把電話轉回給傑夫鮑威爾先生，讓他發表結束語。

Thanks, Olivia.

謝謝，奧莉維亞。

So before wrapping up today, I just want to leave you with a few takeaways. 2024, as we just said, is shaping up to be an excellent year across a wide range of metrics. And we made good progress this year in our efforts to accelerate revenue growth and boost our profitability, despite the challenging macroeconomic environment in various regions of the world. And as always, we expect to deliver excellent cash flow and optimize the allocation of capital to maximize the value for our shareholders.

因此，在今天結束之前，我只想為大家帶來一些收穫。正如我們剛才所說，2024 年在許多指標上都將是出色的一年。儘管全球各地區的宏觀經濟環境充滿挑戰，但今年我們在加速收入成長和提高獲利能力方面取得了良好進展。一如既往，我們期望提供出色的現金流並優化資本配置，以最大限度地提高股東的價值。

With that, I want to thank you for joining the call today and I hope we see you all in New York at Investor Day. Thank you.

在此，我要感謝您參加今天的電話會議，並希望我們在紐約投資者日見到您。謝謝。

Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation, and you may now disconnect.

女士們、先生們，今天的會議到此結束。感謝您的參與，您現在可以斷開連接。