Kennametal Inc (KMT) 2023 Q1 法說會逐字稿

Welcome, everyone, and thank you for joining us to review Kennametal's First Quarter Fiscal 2023 results. Yesterday evening, we issued our earnings press release and posted our presentation slides on our website. We will be referring to that slide deck throughout today's call. I'm Kelly Boyer, Vice President of Investor Relations. Joining me on the call today are Chris Rossi, President and Chief Executive Officer and Pat Watson, Vice President and Chief Financial Officer. After Chris and Pat's prepared remarks, we will open the line for questions. At this time, I would like to direct your attention to our forward-looking disclosure statement. Today's discussion contains comments that constitute forward-looking statements and as such, involve a number of assumptions, risks and uncertainties that could cause the company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. These risk factors and uncertainties are detailed in Kennametal's SEC filings. In addition, we will be discussing non-Gap financial measures on the call today. Reconciliations to Gap financial measures that we believe are most directly comparable can be found at the back of the slide deck and on our forum page on our website. And with that, I'll now turn the call over to Chris.

歡迎大家，並感謝您與我們一起回顧 Kennametal 2023 財年第一季度的業績。昨天晚上，我們發布了收益新聞稿，並在我們的網站上發布了演示幻燈片。在今天的電話會議中，我們將參考該幻燈片。我是投資者關係副總裁 Kelly Boyer。今天和我一起參加電話會議的有總裁兼首席執行官 Chris Rossi 和副總裁兼首席財務官 Pat Watson。在 Chris 和 Pat 準備好的發言之後，我們將打開提問熱線。此時，我想請您注意我們的前瞻性披露聲明。今天的討論包含構成前瞻性陳述的評論，因此涉及許多假設、風險和不確定性，可能導致公司的實際結果、業績或成就與此類陳述中表達或暗示的結果、業績或成就存在重大差異。這些風險因素和不確定性在 Kennametal 提交給 SEC 的文件中有詳細說明。此外，我們將在今天的電話會議上討論非缺口財務措施。我們認為最直接可比的 Gap 財務措施的對賬可以在幻燈片的背面和我們網站的論壇頁面上找到。有了這個，我現在將電話轉給克里斯。

I'll start today's call with a review of the quarter, our growth road map and some recent strategic wins. Then Pat will go over the quarterly financial results and the outlook. Finally, I'll make some summary comments before opening the call for questions. Beginning on Slide 2 in the presentation. The first quarter results highlight continuing growth and successful execution of our strategic initiatives, offset by macroeconomic factors such as high inflation, foreign exchange and regional headwinds in EMEA and China. Sales increased 9% organically year-over-year, offset by negative foreign exchange of 7% for a total sales increase of 2%. On a sequential basis, sales decreased by 7% from Q4 to Q1, in line with expectations and slightly better than the normal 8% to 10% seasonal decline due to the European summer holiday season and seasonal construction trends. Year-over-year, on a constant currency basis, all regions and end markets grew. The Americas led with double-digit growth. In Asia Pacific, rolling Covid lockdowns affected growth rates in China, but other Asia Pacific countries remain strong. In EMEA, sales were negatively affected by disruptions due to the Ukraine crisis as well as our exit from Russia in Q3 last year. By end market, aerospace, energy and earthworks all reported double-digit growth and transportation and general engineering grew mid-single digits. So overall, end market demand is holding up well, and we expect that to continue through fiscal year '23. That said, I know there are diverging views on the direction of the global economy, especially when looking beyond fiscal year '23. The good news is that whatever direction the global economy may take in the short term, we believe we are well positioned in all our end markets for the long term. We have a strong position in Aerospace and expect to continue to take share as aircraft build rates improve. We are well positioned in both renewable and traditional energy markets to take advantage of the investments that will be needed to meet growing energy demand. Our earthworks business will benefit from increasing government support for construction and elevated mining activity required to meet the immediate demand for coal and longer term to support the conversion to green energy. We see transportation remaining supply constrained with production at lower levels in the short term but gradually improving, and we expect to benefit from the leadership position we are establishing in tooling for electric vehicles. Lastly, we expect general engineering to benefit from the continuing growth in industrial production and our fit-for-purpose strategy. So, while we acknowledge the shorter-term uncertainty, we feel quite good about the longer-term underlying growth drivers in our end markets and in our ability to secure market-leading positions. Now looking to profitability for the quarter. As we discussed on our last call, macroeconomic factors are masking the underlying piece volume leverage we are getting from simplification modernization and our focus on operational excellence. In Q1, this volume leverage benefit was offset by macroeconomic-related factors, including a significant FX headwind and a decrease in pension income, which is noncash, due primarily to changes in the assumption on return on assets. In addition, we experienced temporary supply chain disruptions, which Pat will provide more color on later. In the meantime, I want to remind everyone that over the last several years, we have been successful at managing numerous supply chain and other operational disruptions resulting from the pandemic. So I'm confident we will fully mitigate these most recent challenges by the end of this fiscal year. As expected, operating expense as a percent of sales increased to 21.9% this quarter with annual salary increases being one of the drivers. Another major driver is increased travel to customer sites and product trials as customer eased COVID-19 restrictions for supplier partner visits. This is good news for our commercial and engineering teams as it affords them the opportunity to demonstrate our latest product innovations across our entire brand portfolio. While obviously in expense, we see these costs as an investment in growth and gaining share. I'll discuss on a later slide some examples of the returns we are getting on this investment. Taxes increased slightly year-over-year in the quarter to 27.5% due mainly to regional mix. Adjusted EPS declined to $0.34 compared to $0.44 in the prior year quarter, with the majority of the decline driven by the macroeconomic factors I discussed. Our free cash flow this quarter is consistent with our typical use of cash in Q1, driven by payment of performance-based compensation. Also affecting cash flow this quarter was an increase in working capital, mainly inventory due to higher raw material costs and increased safety stocks to mitigate supply chain related disruptions. Finally, another use of cash was the buyback of $19 million of shares, which brings the total amount bought back since program inception to $105 million. Our share repurchase program reflects the confidence we have to execute on our strategic initiatives for long-term value creation despite the current macroeconomic headwinds. Now let's turn to Slide 3 to review our growth road map. As you can see, the road map outlines the share gain initiatives, megatrends and other growth areas that comprise our commercial excellence strategy. First, of course, we are focused on growing our share of the current base business. In addition to innovative products and best-in-class customer support, the investments we made over the last few years on modernization and our ongoing operational excellence initiatives are enabling us to drive a larger share of wallet with existing and new customers. Beyond the base business, there are also megatrends that are well aligned with our technical expertise and market exposure, and therefore creating opportunities for growth in market segments such as electric vehicles, aerospace, digital and ESG. Also, and still within the organic growth areas of focus, we are now able to cost-effectively reach segments of our end markets and application spaces that we historically were unable to serve. This is due to simplification modernization as well as digital customer targeting and our digital customer experience platform. Examples of that platform includes supporting small- to medium-sized job shops, providing tooling for medical device manufacturers and supporting micro machining and fit-for-purpose applications. And finally, we have the opportunity to supplement our organic growth initiatives through acquisitions. Now please turn to Slide 4 for some recent commercial wins that are great examples of our success in executing on this road map. Again, this quarter, we had significant wins in aerospace, including providing tooling for a large aerospace engine supplier, solving this customer's technical challenges has opened the door for additional business. We also had a win with an aerospace customer for high-performance tooling used in the creation of specialized components for space stations and astronaut backpacks. This quarter, we again gained a larger share of wallet with existing customers, including an oilfield services customer, where we applied our material science and additive manufacturing capability to become the sole source supplier for the customer's new nozzle design, which cannot be manufactured using traditional manufacturing techniques. In the Process Industries segment, we collaborated with an OEM and leveraged our technical and manufacturing expertise to provide a plastic extrusion dye that significantly outperforms the competition in delivery, performance and technical support. Finally, in the rapidly growing electric vehicle segment, where we have established a leadership position in metal cutting, we broadened our reach with a win in our infrastructure segment by providing aware solution used in battery production. These are just some examples of impressive wins that demonstrate our ability to gain share and give us confidence that the investments we are making in commercial excellence, expense and innovation are paying off. Now let me turn the call over to Pat, who will review the first quarter financial performance and the outlook.

在今天的電話會議開始時，我將回顧本季度、我們的增長路線圖和最近的一些戰略勝利。然後帕特將回顧季度財務業績和前景。最後，在開始提問之前，我將做一些總結性的評論。從演示文稿中的幻燈片 2 開始。第一季度業績突顯了我們戰略舉措的持續增長和成功執行，但被高通脹、外彙和歐洲、中東和非洲和中國的區域逆風等宏觀經濟因素所抵消。銷售額同比有機增長 9%，被 7% 的負外匯抵消，總銷售額增長 2%。從環比來看，銷售額從第 4 季度到第 1 季度下降了 7%，符合預期，略好於歐洲夏季假期和季節性建築趨勢導致的 8% 到 10% 的正常季節性下降。與去年同期相比，在固定匯率的基礎上，所有地區和終端市場都有所增長。美洲以兩位數的增長領先。在亞太地區，Covid 封鎖措施的滾動影響了中國的增長率，但其他亞太國家/地區依然強勁。在歐洲、中東和非洲地區，銷售受到烏克蘭危機以及我們去年第三季度退出俄羅斯造成的中斷的負面影響。就終端市場而言，航空航天、能源和土方工程均實現兩位數增長，運輸和通用工程實現中等個位數增長。因此，總體而言，終端市場需求保持良好，我們預計這種情況將持續到 23 財年。也就是說，我知道對全球經濟的方向存在不同的看法，尤其是在展望 23 財年之後。好消息是，無論全球經濟在短期內走向何方，我們相信從長遠來看，我們在所有終端市場都處於有利地位。我們在航空航天領域擁有強大的地位，並希望隨著飛機製造率的提高繼續佔據市場份額。我們在可再生能源和傳統能源市場都處於有利地位，可以利用滿足不斷增長的能源需求所需的投資。我們的土方工程業務將受益於政府對建設和採礦活動增加的支持，以滿足對煤炭的即時需求和長期支持向綠色能源的轉換。我們認為運輸剩餘供應在短期內受限於較低水平的生產，但會逐漸改善，我們預計將從我們在電動汽車工具領域建立的領導地位中受益。最後，我們預計通用工程將受益於工業生產的持續增長和我們的適用戰略。因此，雖然我們承認短期的不確定性，但我們對終端市場的長期潛在增長動力以及我們確保市場領先地位的能力感到非常滿意。現在正在尋找本季度的盈利能力。正如我們在上次電話會議上討論的那樣，宏觀經濟因素正在掩蓋我們從簡化現代化和我們對卓越運營的關注中獲得的潛在件數槓桿。在第一季度，這一數量槓桿效益被宏觀經濟相關因素所抵消，包括重大的外匯逆風和養老金收入（非現金）的減少，這主要是由於資產回報率假設的變化。此外，我們經歷了暫時的供應鏈中斷，Pat 稍後將提供更多顏色。與此同時，我想提醒大家，在過去的幾年裡，我們成功地管理了由大流行造成的大量供應鍊和其他運營中斷。因此，我相信我們將在本財政年度結束時完全緩解這些最近的挑戰。正如預期的那樣，本季度營業費用佔銷售額的百分比上升至 21.9%，其中年薪增長是推動因素之一。另一個主要驅動因素是隨著客戶放寬了對供應商合作夥伴訪問的 COVID-19 限制，增加了前往客戶現場的旅行和產品試用。這對我們的商業和工程團隊來說是個好消息，因為這讓他們有機會展示我們在整個品牌組合中的最新產品創新。雖然明顯是費用，但我們將這些成本視為對增長和獲得份額的投資。我將在稍後的幻燈片中討論我們從這項投資中獲得回報的一些例子。本季度稅收同比小幅增長至 27.5%，這主要是由於區域組合。調整後的每股收益從去年同期的 0.44 美元下降到 0.34 美元，下降的主要原因是我討論過的宏觀經濟因素。本季度我們的自由現金流與我們在第一季度的典型現金使用情況一致，這是由支付基於績效的薪酬驅動的。本季度影響現金流的另一個因素是營運資金的增加，主要是由於原材料成本上漲和安全庫存增加導致的庫存增加，以緩解與供應鏈相關的中斷。最後，現金的另一用途是回購 1900 萬美元的股票，這使自計劃啟動以來回購的總金額達到 1.05 億美元。我們的股票回購計劃反映了儘管當前宏觀經濟逆風，但我們有信心執行我們的戰略計劃以創造長期價值。現在讓我們轉到幻燈片 3 來回顧我們的增長路線圖。如您所見，該路線圖概述了構成我們卓越商業戰略的份額增益計劃、大趨勢和其他增長領域。首先，當然，我們專注於增加我們在當前基礎業務中的份額。除了創新產品和一流的客戶支持，我們過去幾年在現代化方面所做的投資以及我們持續的卓越運營計劃使我們能夠在現有和新客戶中獲得更大份額的錢包。除了基礎業務之外，還有一些大趨勢與我們的技術專長和市場曝光度非常吻合，因此為電動汽車、航空航天、數字和 ESG 等細分市場創造了增長機會。此外，仍然在關注的有機增長領域內，我們現在能夠以具有成本效益的方式進入我們過去無法服務的終端市場和應用領域。這是由於簡化現代化以及數字客戶定位和我們的數字客戶體驗平台。該平台的示例包括支持中小型加工車間、為醫療設備製造商提供工具以及支持微加工和專用應用程序。最後，我們有機會通過收購來補充我們的有機增長計劃。現在請轉到幻燈片 4，了解一些最近的商業勝利，這些都是我們成功執行此路線圖的很好的例子。同樣，本季度，我們在航空航天領域取得了重大勝利，包括為一家大型航空發動機供應商提供工具，解決了該客戶的技術挑戰，為其他業務打開了大門。我們還贏得了一家航空航天客戶的高性能工具，該工具用於為空間站和宇航員背包創建專用組件。本季度，我們再次從包括油田服務客戶在內的現有客戶那裡獲得了更大的錢包份額，我們在那裡應用我們的材料科學和增材製造能力成為客戶新噴嘴設計的唯一來源供應商，該設計無法使用傳統方法製造製造技術。在加工工業領域，我們與一家原始設備製造商合作，利用我們的技術和製造專業知識提供一種塑料擠出染料，在交付、性能和技術支持方面明顯優於競爭對手。最後，在快速增長的電動汽車領域，我們已經在金屬切削領域確立了領先地位，我們通過提供用於電池生產的有意識的解決方案，擴大了我們在基礎設施領域的影響力。這些只是令人印象深刻的勝利的一些例子，它們證明了我們獲得份額的能力，並讓我們相信我們在商業卓越、費用和創新方面的投資正在取得回報。現在讓我把電話轉給帕特，他將審查第一季度的財務業績和前景。

I will begin on Slide 5 with a review of Q1 operating results. Before I begin, please note that we did not record any non-Gap adjustments this quarter therefore, adjusted numbers are not presented. For today's discussion, year-over-year comparisons will be against the prior year's adjusted results. The quarter's results show that we continue to execute our initiatives in the face of headwinds from inflation, foreign exchange, lockdowns in China, disruptions in EMEA and temporary supply chain disruptions. Sales increased 2% year-over-year with 9% organic growth, largely offset by a 7% foreign currency headwinds. On a sequential basis from the fourth quarter, sales declined 7%, which is slightly better than our normal Q4 to Q1 seasonal decline. As Chris noted, adjusted operating expense as a percentage of sales increased 70 basis points year-over-year to 21.9% from higher salaries and travel and demonstration tooling to support sales growth. Adjusted EBITDA and operating margins were down to 15.9% and 9.8%, respectively. The year-over-year operating margin performance was due to higher pricing, offset by higher raw material costs and general inflation, higher manufacturing costs, including $5 million of temporary supply chain disruptions as well as foreign exchange headwinds. During the quarter, we experienced a few disruptions in our supply chain, including a force majeure from a key supplier to our infrastructure business, which required us to use higher cost supplies and materials and incur some labor inefficiency at a couple of locations. We expect these disruptions to abate by the end of the fiscal year. Pricing actions continue to offset raw material, wage and general cost inflation on a dollar basis. The effective tax rate increased to 27.5% due mainly to regional mix. We reported earnings per share of $0.34 versus adjusted EPS of $0.44 in the prior year period. The main drivers of our EPS performance are highlighted on the bridge on Slide 6. The year-over-year effect of operations this quarter was negative $0.02 due to the factors that I just discussed. You can also clearly see the effects of foreign exchange and the reduction in pension income on EPS with currency contributing negative $0.06 and the reduced pension income negative $0.03. Please note that the change in pension income is noncash and is driven by market factors in our US pension plan. This change will affect each quarter this year. Our US pension plan remains overfunded. Based on the recent spot rates, we expect foreign exchange to remain a headwind too. Slide 7 and 8 detail the performance of our segments this quarter. Metal cutting sales increased 9% organically year-over-year, offset by a foreign currency headwind of 8%. We achieved growth in all regions and end markets on a constant currency basis. By region, the Americas led at 13%, followed by Asia Pacific at 6% and EMEA at 5%. As Chris noted, Asia Pacific's growth was affected by COVID-19 lockdowns in China this quarter. However, we achieved strong growth in other countries in Asia Pacific. EMEA's year-over-year growth this quarter was negatively affected by approximately 400 basis points from our decision to exit Russia in the third quarter last year. By end market, aerospace led with strong growth of 25% year-over-year. General engineering grew 8% year-over-year and Transportation and Energy grew mid-single digits. Adjusted operating margin decreased 70 basis points from the prior year quarter to 9.5%. The decrease in margin was due primarily to favorable pricing, higher sales volumes at normal operating leverage and favorable product mix, which were more than offset by higher costs, including higher raw material costs, foreign exchange headwinds and temporary supply chain disruptions. Turning to Slide 8 for Infrastructure. Organic sales increased by 10% year-over-year, offset by foreign exchange of 5%. All regions were positive year-over-year, with the Americas leading at 13%, followed by Asia Pacific at 8% and EMEA flat. By end market, again, energy was up strong double digits at 20% year-over-year. The strength in energy was driven mainly by improvement in the US oil and gas market as seen in the continued increase in the US land-only rig count. Earthworks was up 11%, with broad strength in all regions and general engineering was flat, with strength in Asia Pacific, offset by a decline in the Americas and EMEA as a result of project orders in the prior year that did not repeat. Operating margin declined by 340 basis points year-over-year to 10.7%, with price and mix, plus the normal leverage on volume, partially offsetting increased raw material costs and higher costs, including temporary supply chain disruptions in foreign exchange. In Q1, price continued to cover raw material, wage and general inflation on a dollar basis. Now turning to Slide 9 to review our balance sheet and free operating cash flow. We continue to maintain a healthy balance sheet and debt maturity profile. At quarter end, we had combined cash and revolver availability of approximately $700 million, and we're well within our financial covenants. On a percentage of sales basis, primary working capital decreased to 31.7%. On a dollar basis, primary working capital increased year-over-year to $664 million, reflecting higher raw material costs and additional safety stock associated with extended supply chains. Net capital expenditures were $29 million, an increase of approximately $12 million from the prior year, but in line with our expectation of full year capital spending of $100 million to $120 million. Our first quarter free operating cash flow was negative $40 million, a decrease from the prior year quarter, but consistent with our usual first quarter outflow due to seasonal sales patterns and the timing of incentive compensation payments, paid a dividend of $16 million in the quarter. Finally, as Chris noted, we repurchased $19 million of shares during the quarter under our previously announced repurchase program. Since inception, we have repurchased $105 million of stock. This reflects our confidence in our strategy for growth and margin improvement. A full balance sheet can be found on Slide 50 in the appendix. Now let's turn to Slides 10 and 11 to review the outlook. Starting with the second quarter, we expect sales to be between $480 million to $500 million, which on a sequential basis and excluding additional foreign exchange headwinds would be in line with our normal seasonality of 1% to 2%. Sales range assumes $40 million of year-over-year currency headwinds and pricing actions of approximately 7%. We expect strength to continue in underlying demand in all our end markets, and we are assuming no significant disruptions from COVID lockdowns in China or energy uncertainty in EMEA. We believe customers will remain cautious in this environment and do not expect meaningful restocking at this time. Adjusted operating income is expected to be a minimum of $30 million, which reflects continued inflation headwinds against our strong pricing actions. Sequentially from the first quarter, raw material costs increased by approximately $15 million and then are expected to remain approximately at this level for the balance of the fiscal year. It is important to note that over the last 5 quarters, we have been aggressively raising prices ahead of experiencing the full effect of higher tungsten prices. In Q2, this favorability of price over material cost is negligible as raw material costs reflecting the current market cost now flows through the PNL. This price over material cost timing is normal and primarily affects the Infrastructure segment. Lastly, we expect the supply chain disruptions we discussed earlier to continue in the second quarter and then fully abate by the end of the fiscal year. Turning to Slide 11 regarding the full year, we expect FY '23 sales to be between $2 billion and $2.08 billion with volume flat to up 4%. Price realization of approximately 5% to 6% and a headwind from currency of approximately $130 million. This sales outlook assumes that there will be no significant disruptions from COVID-19 lockdowns or energy disruptions in EMEA. We expect adjusted earnings per share to be between $1.30 and $1.70. Even in this inflationary environment, price realization and our operational excellence productivity projects will continue to offset raw material wage and general cost increases on a dollar basis. The $130 million foreign exchange sales headwinds is expected to result in a $25 million operating income headwind. Additionally, lower pension income will be a headwind each quarter this year for a total of $14 million. We remain committed to driving strong execution on our operational and commercial excellence initiatives and expect to continue to see compelling results from our road map. Depreciation and amortization is expected to be approximately $135 million and our outlook for working capital and capital expenditures remains unchanged. Finally, over the full year, we expect free operating cash flow at approximately 100% of adjusted net income, in line with our long-term target, further demonstrating our progress transforming the company.

我將從幻燈片 5 開始，回顧第一季度的運營結果。在開始之前，請注意本季度我們沒有記錄任何非差距調整，因此沒有提供調整後的數字。對於今天的討論，同比比較將與上一年的調整後結果進行比較。本季度的業績表明，面對通貨膨脹、外匯、中國封鎖、歐洲、中東和非洲地區中斷以及供應鏈暫時中斷等不利因素，我們繼續執行我們的舉措。銷售額同比增長 2%，有機增長 9%，主要被 7% 的外匯逆風所抵消。從第四季度開始，銷售額環比下降 7%，略好於我們正常的第四季度至第一季度季節性下降。正如 Chris 指出的那樣，調整後的運營費用佔銷售額的百分比同比增長 70 個基點至 21.9%，原因是更高的工資以及差旅和演示工具支持銷售增長。調整後的 EBITDA 和營業利潤率分別下降至 15.9% 和 9.8%。同比營業利潤率表現是由於價格上漲，被原材料成本上漲和普遍通貨膨脹、製造成本上漲所抵消，包括 500 萬美元的臨時供應鏈中斷以及外匯逆風。在本季度，我們的供應鏈出現了一些中斷，包括我們的基礎設施業務的主要供應商的不可抗力，這要求我們使用成本更高的供應和材料，並在幾個地點導致勞動力效率低下。我們預計這些干擾將在本財年結束時減少。定價行動繼續抵消以美元為基礎的原材料、工資和一般成本通脹。有效稅率增至 27.5%，主要是由於區域組合。我們報告的每股收益為 0.34 美元，而去年同期的調整後每股收益為 0.44 美元。我們 EPS 業績的主要驅動因素在幻燈片 6 的橋樑上突出顯示。由於我剛才討論的因素，本季度運營的同比影響為負 0.02 美元。您還可以清楚地看到外彙和養老金收入減少對 EPS 的影響，貨幣貢獻為負 0.06 美元，養老金收入減少為負 0.03 美元。請注意，養老金收入的變化是非現金的，在我們的美國養老金計劃中是由市場因素驅動的。這一變化將影響今年的每個季度。我們的美國養老金計劃仍然資金過剩。根據最近的即期匯率，我們預計外匯也將繼續不利。幻燈片 7 和 8 詳細介紹了本季度我們細分市場的表現。金屬切削銷售額同比有機增長 9%，但被 8% 的外匯逆風所抵消。我們在所有地區和終端市場均以固定匯率計算實現增長。按地區劃分，美洲以 13% 居首，其次是亞太地區，佔 6%，歐洲、中東和非洲地區佔 5%。正如克里斯指出的那樣，本季度亞太地區的增長受到中國 COVID-19 封鎖的影響。然而，我們在亞太地區其他國家實現了強勁增長。 EMEA 本季度的同比增長受到我們去年第三季度退出俄羅斯的決定影響約 400 個基點。在終端市場，航空航天以 25% 的同比強勁增長領先。通用工程同比增長 8%，交通和能源增長中等個位數。調整後的營業利潤率比去年同期下降 70 個基點至 9.5%。利潤率的下降主要是由於有利的定價、正常經營槓桿下的銷量增加和有利的產品組合，這些都被更高的成本所抵消，包括更高的原材料成本、外匯逆風和暫時的供應鏈中斷。轉到幻燈片 8 了解基礎設施。有機銷售額同比增長 10%，被 5% 的外匯抵消。所有地區均實現同比增長，美洲以 13% 領先，其次是亞太地區，為 8%，歐洲、中東和非洲持平。在終端市場，能源再次以兩位數的速度同比增長 20%。能源的強勢主要是由美國石油和天然氣市場的改善所推動的，這從美國陸地鑽井平台數量的持續增加中可以看出。土方工程增長 11%，在所有地區均表現強勁，通用工程持平，亞太地區表現強勁，但由於上一年的項目訂單沒有重複，美洲和 EMEA 的下滑抵消了這一下滑。營業利潤率同比下降 340 個基點至 10.7%，價格和組合，加上正常的數量槓桿，部分抵消了原材料成本的增加和更高的成本，包括暫時的外匯供應鏈中斷。第一季度，價格繼續涵蓋以美元為基礎的原材料、工資和一般通脹。現在轉到幻燈片 9 來查看我們的資產負債表和自由經營現金流。我們繼續保持健康的資產負債表和債務到期狀況。在本季度末，我們的現金和可動用手槍合計約為 7 億美元，並且完全符合我們的財務契約。按銷售額百分比計算，主要營運資金下降至 31.7%。按美元計算，主要營運資金同比增長至 6.64 億美元，反映出原材料成本上升以及與擴展供應鏈相關的額外安全庫存。淨資本支出為 2900 萬美元，比上年增加約 1200 萬美元，但符合我們對全年資本支出 1 億至 1.2 億美元的預期。我們第一季度的自由經營現金流為負 4000 萬美元，比去年同期有所減少，但與我們通常的第一季度由於季節性銷售模式和激勵薪酬支付的時間流出一致，本季度支付了 1600 萬美元的股息.最後，正如克里斯指出的那樣，我們在本季度根據之前宣布的回購計劃回購了 1900 萬美元的股票。自成立以來，我們已經回購了 1.05 億美元的股票。這反映了我們對我們的增長和利潤率提高戰略的信心。完整的資產負債表可以在附錄的幻燈片 50 中找到。現在讓我們轉到幻燈片 10 和 11 來回顧一下前景。從第二季度開始，我們預計銷售額將在 4.8 億美元至 5 億美元之間，按順序計算並排除額外的外匯逆風將符合我們 1% 至 2% 的正常季節性。銷售額範圍假設 4000 萬美元的同比匯率逆風和大約 7% 的定價行動。我們預計我們所有終端市場的潛在需求將繼續強勁，並且我們假設中國的 COVID 封鎖或 EMEA 的能源不確定性不會造成重大中斷。我們相信客戶在這種環境下將保持謹慎，預計此時不會有有意義的補貨。調整後的營業收入預計至少為 3000 萬美元，這反映了持續的通貨膨脹對我們強有力的定價行動的不利影響。從第一季度開始，原材料成本增加了約 1500 萬美元，預計在本財年的剩餘時間內將大致保持在這一水平。值得注意的是，在過去 5 個季度中，我們一直在積極提高價格，然後才體驗到鎢價上漲的全部影響。在第二季度，這種價格對材料成本的優勢可以忽略不計，因為反映當前市場成本的原材料成本現在流經損益表。這種超過材料成本時間的價格是正常的，主要影響基礎設施部門。最後，我們預計我們之前討論的供應鏈中斷將在第二季度繼續，然後在本財年末完全減弱。關於全年的幻燈片 11，我們預計 23 財年的銷售額將在 20 億美元至 20.8 億美元之間，銷量持平至增長 4%。價格實現約 5% 至 6%，貨幣逆風約為 1.3 億美元。該銷售前景假設 EMEA 地區的 COVID-19 封鎖或能源中斷不會造成重大中斷。我們預計調整後每股收益在 1.30 美元至 1.70 美元之間。即使在這種通貨膨脹的環境中，價格實現和我們的卓越運營生產力項目將繼續抵消原材料工資和一般成本的美元增長。 1.3 億美元的外匯銷售逆風預計將導致 2500 萬美元的營業收入逆風。此外，較低的養老金收入將成為今年每個季度的不利因素，總計 1400 萬美元。我們仍然致力於推動我們的運營和商業卓越計劃的強有力執行，並期望繼續從我們的路線圖中看到令人信服的結果。折舊和攤銷預計約為 1.35 億美元，我們對營運資本和資本支出的展望保持不變。最後，在全年中，我們預計自由經營現金流約為調整後淨收入的 100%，符合我們的長期目標，進一步證明我們在公司轉型方面取得的進展。

urning to Slide 12. Let me take a few minutes to summarize. The results this quarter demonstrate our ability to execute our strategic initiatives despite uncertainty in the economy and headwinds from inflation and foreign exchange. I'm pleased with our progress on growth initiatives as outlined on our growth road map and our wins each quarter continue to demonstrate our industry-leading innovation and deep understanding of our customers' applications. Our balance sheet is strong and the expected total year free operating cash flow gives us the flexibility to continue investing in our strategic initiatives. It also allows us to optimize capital allocation, including bolt-on acquisitions, dividends and share repurchases. As a reminder, we have a long history of consistently paying a dividend, having done so every quarter since being listed on the New York Stock Exchange in 1967. Our share repurchase program is further evidence of our confidence in the underlying intrinsic value of the company. Although the current economic environment limits visibility, we expect sales to follow our normal sequential quarterly growth patterns for the full year. Despite any short-term economic uncertainty, we feel good about the longer-term underlying drivers in our end markets and are confident in our competitive positioning

轉到幻燈片 12。讓我花幾分鐘時間總結一下。本季度的業績表明，儘管經濟存在不確定性以及通貨膨脹和外匯帶來的不利因素，但我們有能力執行我們的戰略舉措。我對我們在增長路線圖上概述的增長計劃取得的進展感到滿意，我們每個季度的勝利繼續展示我們行業領先的創新和對客戶應用程序的深刻理解。我們的資產負債表強勁，預期的全年自由經營現金流使我們能夠靈活地繼續投資於我們的戰略計劃。它還使我們能夠優化資本配置，包括補強收購、股息和股票回購。提醒一下，自 1967 年在紐約證券交易所上市以來，我們一直持續派發股息的歷史由來已久。我們的股票回購計劃進一步證明了我們對公司潛在內在價值的信心.儘管當前的經濟環境限制了能見度，但我們預計全年銷售額將遵循我們正常的連續季度增長模式。儘管存在任何短期經濟不確定性，但我們對終端市場的長期潛在驅動因素感到滿意，並對我們的競爭定位充滿信心

I was wondering if we can just focus a little bit on volume since I guess that's kind of where you get your leverage. Sorry, if I missed it, but what was volume up in the quarter and maybe price as well just to sort of round that out

我想知道我們是否可以稍微關註一下交易量，因為我想這就是你獲得影響力的地方。抱歉，如果我錯過了，但本季度的成交量以及價格可能有所上漲，只是為了解決這個問題

Steve, volume would have been up year-over-year at what we said it was a $4 million effect on operating income positive. So what I think most analysts are modelling that leverage to be at 50%. So that would equal about a volume increase of around $8 million based on that model.

史蒂夫，我們所說的銷量本可以同比增長，這對營業收入產生了 400 萬美元的積極影響。所以我認為大多數分析師都將槓桿率建模為 50%。因此，基於該模型，這相當於增加了約 800 萬美元的銷量。

So overall, if you look at that, we got the $8 million approximately in terms of volume in there, the 7% of FX and then you kind of back into where the price would be based on those 2 numbers.

所以總的來說，如果你看一下，我們得到了大約 800 萬美元的交易量，7% 的外匯，然後你就回到了基於這兩個數字的價格。

I guess, general engineering must have been down on a volume basis and EMEA as well. Can you just sort of comment on what you're seeing there?

我想，一般工程一定是在數量基礎上下降了，歐洲、中東和非洲也是如此。你能對你在那裡看到的東西發表評論嗎？

What I would say for metal cutting in sort of Q4 to Q1, that the Americas sort of stay at a strong level, and that will continue through our forecast for Q2. EMEA did weaken slightly and AP stayed around the same. For transportation, it was pretty stable in all regions but as you know, it's still kind of lower levels in the current environment as they still are waiting for chips, et cetera. Aerospace did increase Q4 to Q1, and we expect that, that will continue at these higher levels through Q2, and actually, that's part of our forecast for the full year. Then energy kind of remained stable, Steve, at higher levels. So that was -- that continues to be a strength for us. On the infrastructure side, gen-en the US was steady and Pat had mentioned some of the factors that affected EMEA, which was the Ukraine Russian conflict. AP was steady. Then we had some pluses and minuses with large orders not repeating that distorted the number there but generally, the underlying business and infrastructure with the exception of the Ukraine conflict is pretty strong. Energy, of course, remains at strong levels. Then mining, and the underground mining projects are really, I would say, at an elevated level, maybe aren't increasing, but they're expected to stay at that higher level. Construction for Asia Pacific was strong in China. EMEA, I would say, is sort of flat sequentially and the Americas, of course, was down due to seasonality.

對於第四季度到第一季度的金屬切削，我要說的是，美洲在某種程度上保持強勁水平，並且這種情況將持續到我們對第二季度的預測。歐洲、中東和非洲確實略有減弱，而亞太地區則保持不變。對於交通，它在所有地區都非常穩定，但如您所知，在當前環境下它仍然處於較低水平，因為他們仍在等待籌碼等。航空航天確實將第四季度增加到第一季度，我們預計，這種情況將在第二季度繼續保持在較高水平，實際上，這是我們全年預測的一部分。然後能量在某種程度上保持穩定，史蒂夫，在更高的水平。所以那是 - 這仍然是我們的力量。在基礎設施方面，美國 gen-en 穩定，Pat 提到了一些影響 EMEA 的因素，即烏克蘭與俄羅斯的衝突。美聯社穩定。然後我們有一些優點和缺點，大訂單沒有重複，扭曲了那裡的數字，但總的來說，除了烏克蘭衝突之外，基礎業務和基礎設施非常強大。當然，能源仍處於強勁水平。然後是採礦，我想說地下採礦項目確實處於較高水平，可能不會增加，但預計它們將保持在較高水平。亞太地區的建設在中國表現強勁。歐洲、中東和非洲地區，我想說，順序持平，而美洲當然是由於季節性而下降。

You said in your prepared remarks that you expected some of these unusual headwinds to mitigate by the end of this fiscal year. Are you talking about sort of the supply chain and the pension and kind of all these things? Or just maybe a little detail on what you're expecting to sort of be done with by the end of the fiscal year.

您在準備好的發言中表示，您預計這些不尋常的逆風中的一些會在本財年末有所緩解。您是在談論某種供應鍊和養老金以及所有這些事情嗎？或者只是關於您期望在財政年度結束時完成的事情的一些細節。

Yes, we were really talking about the temporary supply chain issues. We also gave guidance on what's going to happen with pension and FX for the full year. So I'll just direct you to the slides there. Yes, the temporary cost actions -- or temporary supply chain disruption, Steve, we started to see those obviously in the first quarter, and they were -- it turned out they were stronger than what we thought. Then we had a new one from a supplier, which is a force majeure. Frankly, I'm not even sure our suppliers saw that coming because it's actually a result of their supply chain. But in this current environment, certainly throughout the pandemic, we're used to putting in mitigation strategies and so I would say that we've got the plan in place to find alternative suppliers, and we're implementing that plan right now. The reason they'll abate is that as we move through the second half of the year, the mitigation plans that our suppliers have in place will allow them to continue to supply us and we can return to the normal source of supply, which would be a less costly mix. So we're calling it temporary because it's kind of a result of the current chaotic environment that we're operating in but those will abate by the end of the year.

是的，我們真的在談論暫時的供應鏈問題。我們還就全年養老金和外彙的走勢提供了指導。所以我將引導您看那裡的幻燈片。是的，臨時的成本行動——或臨時的供應鏈中斷，史蒂夫，我們在第一季度開始明顯地看到這些，而且它們是——事實證明它們比我們想像的要強大。然後我們從供應商那裡得到了一個新的，這是不可抗力。坦率地說，我什至不確定我們的供應商是否看到了這一點，因為這實際上是他們供應鏈的結果。但在當前的環境下，當然在整個大流行期間，我們習慣於實施緩解策略，所以我想說我們已經制定了尋找替代供應商的計劃，並且我們現在正在實施該計劃。他們會減少的原因是，隨著我們進入下半年，我們的供應商制定的緩解計劃將使他們能夠繼續為我們供貨，我們可以恢復正常的供應來源，這將是成本較低的組合。所以我們稱它為暫時性的，因為這是我們目前所處的混亂環境的結果，但到今年年底這些都會減少。

I'm going to add on the pension, Steve, that we set those parameters in terms of the assumptions at the beginning of the year. So those numbers are pretty locked in for the year in terms of the $14 million headwind we have for the full yea

我要加上養老金，史蒂夫，我們根據年初的假設設置了這些參數。因此，就我們全年面臨的 1400 萬美元逆風而言，這些數字在今年相當固定

I just wanted to follow up on the two headwinds you called out on Slide 10 around the raw materials of EUR 25 million year-on-year and that supply chain one of $5 million in the second quarter. Maybe just help us understand what's dialed into that full year guidance for the second half for those two items in terms of year-on-year? I understand that raw materials sequentially starts to stabilize but just as we're thinking about year-on-year for those two items in the second half, how would you kind of steer us?

我只是想跟進你在幻燈片 10 中提到的兩個逆風，即第二季度 2500 萬歐元的原材料和 500 萬美元的供應鏈之一。也許只是幫助我們了解這兩個項目下半年的全年指導與去年同期相比有何變化？我知道原材料順序開始穩定，但正如我們正在考慮下半年這兩個項目的同比增長一樣，你會如何引導我們？

Yes. I would say on the supply chain, so for the first half of the year, it's about a $10 million subject, and it is expected to abate by the end of the year, Julian, and I think you can model somewhere between maybe $5 million to $7 million still in the back half of the year order of magnitude

是的。我會說在供應鏈上，所以今年上半年，這是一個大約 1000 萬美元的主題，預計到今年年底會減少，朱利安，我認為你可以模擬大約 500 萬美元到 700 萬美元仍處於下半年的數量級

On the raw material, you're correct. Once we kind of get to this level here in the second quarter, it should be basically at that level throughout the rest of the year sequentially. On a year-over-year basis, that will be a net headwind for us for the rest of the year from a material perspective, but that is inside our expectations of our price realization covering our cost inflation for the full year.

關於原材料，你是對的。一旦我們在第二季度達到這個水平，它應該在今年餘下的時間里基本保持在這個水平。與去年同期相比，從物質的角度來看，這將是我們今年剩餘時間的淨逆風，但這在我們對價格實現的預期範圍內，涵蓋了我們全年的成本通脹。

So that raw material headwind, it's sort of $25 million in Q2, the second half as a whole is something like that number, is it?

那麼原材料逆風，第二季度大約是 2500 萬美元，整個下半年就是這個數字，是嗎？

Yes but it's, again, covered inside that the entire price cut here

是的，但它再次涵蓋了這裡的整個降價

My follow-up question would just be around when we're thinking about the sort of volume outlook, it looks like you're assuming sort of steady year-on-year volume trends at the balance of the year, normal seasonality, I think, as you called out sequentially. When we're looking at any of the main end market moving pieces, anything expected to change sort of sharply as you go through the year? I guess transportation is one that I might have thought would be up more at some point than what you saw in fiscal Q1. I think a lot of the companies selling into transportation, their sales are up double digits right now, say, looking at Eaton Vehicle this morning, for example. So just wondered kind of any main moving parts you're calling out on end market swings for the balance of the year and anything particular in transport transportation?

我的後續問題只是在我們考慮這種交易量前景時出現，看起來你假設在今年餘下時間的交易量趨勢穩定，正常的季節性，我認為，正如你依次呼喚的那樣。當我們審視任何主要的終端市場變動因素時，有什麼預期會在您度過這一年時發生急劇變化嗎？我想交通運輸是我可能認為在某個時候會比你在第一季度看到的更多的增長。我認為很多從事運輸業務的公司，他們的銷售額現在都增長了兩位數，例如，今天早上看看伊頓汽車公司。所以只是想知道您在今年餘下時間的終端市場波動中提出的任何主要移動部分以及運輸運輸中的任何特殊情況？

I think on transportation, that may be an opportunity for us. We've sort of baked in that we've got, things are going to kind of stay steady where they are. Just because as I listened, for example, to Ford, I think last quarter, their chip issue wasn't as big an effect but GM's was and it switched around this quarter. So I think that's our best estimate. That could be some upside for us. If you look at our range for the full year of $2 billion to $2.080 billion. The way I would think about the drivers there is that Pat highlighted a couple of the significant risks, the energy potential energy issues in EMEA and then COVID lockdowns in China. Then underlying the baseline assumption, of course, is that there is still continued resilience in the US industrial production base. So I would say that what's going to kind of move us on that range of from the low end to the high end is probably these regional factors, whether they become worse or in some cases, they may actually improve. Those will be the big drivers as opposed to specific end markets.

我認為在交通方面，這對我們來說可能是一個機會。我們已經接受了我們所擁有的東西，事情將保持穩定。只是因為我聽過，例如，福特，我認為上個季度，他們的芯片問題沒有那麼大的影響，但通用汽車的影響很大，並且在本季度左右發生了變化。所以我認為這是我們最好的估計。這對我們來說可能是一些好處。如果你看看我們全年的範圍是 20 億美元到 20.8 億美元。我認為那裡的驅動因素的方式是，帕特強調了幾個重大風險，歐洲、中東和非洲的能源潛在能源問題，然後是中國的 COVID 封鎖。當然，基線假設的基礎是美國工業生產基地仍有持續的彈性。所以我想說，將我們推向從低端到高端的範圍的可能是這些區域因素，無論它們變得更糟，還是在某些情況下，它們實際上可能會有所改善。這些將是主要的驅動力，而不是特定的終端市場。

I'm sorry to come back to the second quarter raw materials dynamic, I just want to make sure I understand it. I mean the step down from the first quarter, is that the message that the prices are no longer covering those the pickup in raw material costs? Is that the message? And if so, then why not? I may have misunderstood that.

很抱歉回到第二季度原材料動態，我只是想確保我理解它。我的意思是從第一季度開始下降，是否表明價格不再涵蓋原材料成本的回升？那是消息嗎？如果是這樣，那為什麼不呢？我可能誤解了這一點。

I think you want to take a look at that pricing versus raw material dynamic over a longer-term basis, as we talked about in our prepared remarks, we've been very aggressive in the last 5 quarters going out and getting price. We've experienced that price realization in front of some of those material costs showing up in the PNL. Simply what's happening as we're moving into the second quarter here is that we -- I'll say we're on the same basis in terms of charging for our customers from a material cost perspective and where the material costs are. So as we get into the second quarter here, that's where we see the sequential headwind, but that will not be a headwind again as we move forward for the rest of the year. Again, once we think about that overall material cost, we've always been successful covering that with price

我想你想看看長期基礎上的定價與原材料動態，正如我們在準備好的評論中談到的那樣，我們在過去 5 個季度中一直非常積極地走出去並獲得價格。在 PNL 中出現的一些材料成本之前，我們已經經歷了價格實現。當我們進入第二季度時發生的事情很簡單，我會說我們在從材料成本的角度和材料成本的角度向客戶收費方面處於相同的基礎上。因此，當我們進入第二季度時，這就是我們看到連續逆風的地方，但隨著我們在今年剩餘時間裡向前邁進，這不會再次成為逆風。再一次，一旦我們考慮到整體材料成本，我們總是成功地用價格來彌補它

I guess just on the second half in terms of a revenue run rate I know you're just giving some of the puts and takes here. I mean I guess to what extent should investors be looking at things like the ISM new orders coming in below 50, that kind of suggests some lower revenues? To what extent is it new programs that you have in the works that you think are going to make up for any potential difference? Or I know you said there's maybe a little bit of upside in aerospace. Just trying to think about conceptually how are you thinking about some of these leading indicators and how that's factored into your revenue outlook and kind of daily run rate for the second half of the year?

我想就收入運行率而言，就下半年而言，我知道你只是在這裡給出一些看跌期權。我的意思是，我想投資者應該在多大程度上關注低於 50 的 ISM 新訂單，這表明收入有所下降？您認為作品中的新程序在多大程度上可以彌補任何潛在差異？或者我知道你說過航空航天可能有一點好處。只是想從概念上考慮一下，您如何考慮其中一些領先指標，以及如何將其納入您的收入前景和下半年的每日運行率？

We gave the guidance that we're going to sort of follow our normal seasonality from this point forward. So that would suggest that all things being equal, that seasonality is going to happen, regardless of what the IPIs do, unless the IPIs move significantly north or south. So our outlook is sort of the things kind oF the world has defined in Q1 kind of stays that world going forward. That will be the driver as to whether we're at the high end where it might improve or at the lower end where things get worse. In our outlook, we are assuming that the US continues its resilience. As you know, PMIs have been hovering somewhere around the 50% or the 50 mark for the US.

我們給出的指導是，從現在開始，我們將遵循正常的季節性。因此，這表明在所有條件相同的情況下，無論 IPI 做什麼，季節性都會發生，除非 IPI 大幅向北或向南移動。因此，我們的前景有點像世界在第一季度定義的那種保持世界前進的東西。這將決定我們是處於可能改善的高端還是處於情況變得更糟的低端。在我們的展望中，我們假設美國繼續保持韌性。如您所知，美國的 PMI 一直徘徊在 50% 或 50 左右。

So the 5% to 6% pricing you're expecting for this fiscal, I was curious, is that uniform across the 2 segments? How about the region? Is it 5% to 6% across all regions as well?

所以你對本財政年度的 5% 到 6% 的定價，我很好奇，這兩個部分是統一的嗎？地區怎麼樣？所有地區也是 5% 到 6% 嗎？

We're not going to disclose that kind of information Tami, but I think the way to think about it is the answer is probably no, in general. Every customer is different and we start with the value-based pricing, of course, but there can be differences between infrastructure and metal cutting for sure. Even within those businesses, there's differences from customer to customer. So that's kind of an average for both businesses.

我們不會透露 Tami 這類信息，但我認為一般來說答案可能是否定的。每個客戶都是不同的，當然，我們從基於價值的定價開始，但基礎設施和金屬切割之間肯定存在差異。即使在這些企業中，客戶之間也存在差異。所以這是兩家公司的平均水平。

I want to make the point. It wasn't just a peanut butter spread of price, if you will.

我想說明一點。如果你願意的話，這不僅僅是價格的花生醬價差。

The supply chain pressure is continuing. What are the main one or two pressure points now? Are they the saying they were, let's say, 2 quarters ago? Or anything new has popped up in the last quarter or so?

供應鏈壓力仍在繼續。現在主要的一兩個壓力點是什麼？比方說，他們是兩個季度前的說法嗎？或者在上個季度左右出現了任何新的東西？

I guess if your question is from a customer perspective, we see some easing in supply chains in general. We just had a conversation about transportation and maybe that gets better. We're not expecting it to be, but it could potentially improve but there is some easing of supply chain pressures on our customers. Although it hasn't been that significant yet, we haven't seen it materialize into a substantial increase in orders. If you were talking about our temporary disruptions, I think we covered that on some previous questions.

我想如果你的問題是從客戶的角度出發，我們會看到供應鏈總體上有所放鬆。我們剛剛就交通問題進行了交談，也許情況會好轉。我們並不期望它是，但它可能會有所改善，但我們客戶的供應鏈壓力有所緩解。雖然還沒有那麼顯著，但我們還沒有看到它具體化為訂單的大幅增加。如果你在談論我們的臨時中斷，我想我們在之前的一些問題中已經涵蓋了這一點。

Inventories was up, you flagged how you're building some safety stock. I'm just curious with the intro build, has that been positive to your absorption and your margin over the last quarter or 2? How do you see your inventories progressing through the year based on your demand outlook?

庫存增加了，你標記了你如何建立一些安全庫存。我只是對介紹構建感到好奇，這對您在上一季度或第二季度的吸收和利潤有積極影響嗎？根據你的需求前景，你如何看待你的庫存在一年中的進展？

First of all, we put that inventory in place to make sure that we can maintain the right customer service levels, especially as our customers were coming out of pandemic, and we wanted to make sure we didn't miss an opportunity there. I think based on our current outlook, you have our forecast for primary working capital, so it's baked in there. I think in general, we would expect inventory to start to come down. I think in terms of the absorption issue, that would be more of a subject inside metal cutting, where they have a higher labor content in their cost. So there was a little bit of that inventory driving better absorption, of course. As the inventory bill reduces, I don't think it's going to have a substantial effect on the sort of first half profitability versus the second half profitability

首先，我們將庫存放在適當的位置，以確保我們能夠保持正確的客戶服務水平，尤其是當我們的客戶正從大流行中走出來時，我們希望確保我們不會錯過那裡的機會。我認為根據我們目前的展望，你有我們對主要營運資金的預測，所以它已經在那裡了。我認為總的來說，我們預計庫存會開始下降。我認為就吸收問題而言，這更像是金屬切削領域的一個主題，因為他們的成本中勞動力含量更高。因此，當然有一點庫存推動了更好的吸收。隨著庫存賬單的減少，我認為這不會對上半年盈利能力和下半年盈利能力產生重大影響

I'm just curious on competition. Is there any intensity or increasing intensity on the competition side with maybe currency playing a factor with some of the foreign competitors. I guess what I'm trying to get to is the 7% pricing, is there anything preventing you guys from going further from pricing, not just the cost, but above the cost? Is it the competition? Is it working with your customers that are under pressure? Just curious if there's a ceiling there that you guys are starting to hit that won't let you price even further.

我只是對競爭感到好奇。競爭方面是否有任何強度或強度增加，也許貨幣對一些外國競爭對手有影響。我想我想要達到的是 7% 的定價，是否有什麼阻止你們進一步定價，不僅僅是成本，而是高於成本？是比賽嗎？是否與承受壓力的客戶合作？只是好奇你們是否開始觸及天花板，不會讓你們進一步定價。

Yes, that's a good question and certainly a conversation we have with our sales folks. It is a balance. The magnitude of this price increase is much larger than I think the industry would normally have. That's understandable because we have to price commensurate with the inflationary environment. There is, Michael, there is limits and every customer has got to be treated differently. So that's the way we're approaching it. In some cases, we ultimately start with what value are we bringing to the customer and the more value we have, the more aggressive on price we can be. So we don't necessarily just try to cover the cost. We price based on value but even that has some limitations. So we're trying to do ultimately the way your question suggests, there is a balance between how much price you can get and then the volume effect, and we're trying to strike that right balance.

是的，這是一個很好的問題，當然也是我們與銷售人員的對話。這是一種平衡。這種價格上漲的幅度比我認為該行業通常會有的幅度要大得多。這是可以理解的，因為我們必鬚根據通貨膨脹環境定價。有，邁克爾，有限制，每個客戶都必須得到不同的對待。這就是我們接近它的方式。在某些情況下，我們最終會從我們為客戶帶來的價值開始，我們擁有的價值越多，我們的價格就越激進。所以我們不一定只是試圖支付成本。我們根據價值定價，但即便如此也有一些局限性。所以我們最終會按照你的問題所建議的方式去做，在你能得到多少價格和數量效應之間取得平衡，我們正在努力取得正確的平衡。

I just want to say, we do have a strategy from an in-region, for-region production perspective. So when we think about our currency exposure, much of our currency exposure is simply translational since we're trying to produce in region for the customers we're serving.

我只想說，我們確實有一個從區域內、區域生產角度出發的戰略。因此，當我們考慮我們的貨幣敞口時，我們的大部分貨幣敞口只是平移，因為我們正試圖為我們所服務的客戶在該地區生產。

I just wanted to ask about the commercial excellence initiatives. What are the market indices you measure growth against? Or I guess, how can you tell us the team is performing in line with the cycle and then taking share on top of that? How are you measuring that?

我只是想問一下商業卓越計劃。您衡量增長的市場指數是什麼？或者我猜，你怎麼能告訴我們團隊的表現與週期一致，然後在此基礎上分享呢？你是如何衡量的？

We have a sort of a very detailed process whereby customer, we calculate what we think an entitlement is for that particular customer. So we'll know, for example, certainly, their current level of business. Then then we can tell how much of their business that we're getting on a sort of a per customer basis. So it's actually if you try to fly to a too high a level, Steve, it's hard to find just how much is market and how much is share gain. If you measure it on a sort of a per customer basis, that's the way we look at it. The other thing we can do with our distribution channel is we have targets where for our distribution channels about how much growth we're trying to get because obviously, they're dealing with tens of thousands of different customers. In that case, we do look at indices of based on regional manufacturing. We would say that our growth with that particular distributor in total has been greater than those indices, which gives us comfort that there's actually a pickup for us. So those are a couple of examples of how we try to look at it.

我們有一個非常詳細的流程，客戶可以根據該流程計算我們認為該特定客戶的權利。因此，例如，我們當然會知道他們當前的業務水平。然後我們可以知道我們在每個客戶的基礎上獲得了多少他們的業務。所以實際上，如果你試圖飛到太高的水平，史蒂夫，很難找到市場和份額收益分別是多少。如果您以每個客戶為基礎來衡量它，那就是我們看待它的方式。我們可以用我們的分銷渠道做的另一件事是我們有關於我們試圖獲得多少增長的分銷渠道的目標，因為顯然，他們正在與數以萬計的不同客戶打交道。在這種情況下，我們確實會查看基於區域製造業的指數。我們會說，我們與該特定分銷商的總體增長大於這些指數，這讓我們感到欣慰的是，我們實際上有所回升。所以這些是我們如何看待它的幾個例子。

Do you feel like there's been good progress in the share gains as you've measured what you think the customers should be taking relative to what they are?

當您衡量了您認為客戶應該採取的相對於他們的現狀時，您是否覺得在份額收益方面取得了良好的進展？

Yes, we do because, for example, in Aerospace, where we actually were starting with quite a low share and we don't have a huge share now. That one, we can tell that many of those tier suppliers and even some of the OEMs for certain types of their business, we just didn't have that business before, and they're now starting to direct that to us. I can tell you on the fit-for-purpose application space, which is a lot of small and medium-sized job shops, the growth in that portfolio of WIDIA that's been rebranded and repositioned for fit-for-purpose. That growth rate is faster again than what we see in kind of the general engineering and maybe even the Kennametal tooling. So those are all directional indicators that we're picking up share with these customers

是的，我們這樣做是因為，例如，在航空航天領域，我們實際上開始時的份額很低，現在我們的份額並不大。那個，我們可以告訴許多這些層級供應商，甚至是他們某些類型業務的一些原始設備製造商，我們以前沒有這種業務，他們現在開始將其引導給我們。我可以告訴你適合用途的應用程序空間，這是很多中小型車間，WIDIA 產品組合的增長已經重新品牌和重新定位以適合用途。該增長率再次高於我們在通用工程領域甚至肯納金屬工具領域看到的速度。所以這些都是我們正在與這些客戶分享的方向性指標

That was one of my questions back on Slide 3 with the underserved markets and supporting small and medium job shops. Is that a function of incentivizing distributors? Or do you have new specific sales initiatives from your own internal sales group to drive growth there?

這是我在幻燈片 3 上提出的關於服務不足的市場和支持中小型工作商店的問題之一。這是激勵經銷商的作用嗎？或者您的內部銷售團隊是否有新的具體銷售計劃來推動那裡的增長？

I think it's a combination of both. In some cases, some of those small job shops are so small, they're not even covered by distributors. So we have targeted digital marketing towards those small customers. In many cases, they may through our supply chain, our channel partners, they may direct their inquiries ultimately through the distribution channel. Together, we're working with our channel partners to make sure we're reaching those companies and whether it comes back through distribution or whether it comes directly through our website and we pick up the inquiry through our inside sales organization, it doesn't matter to us. We're still going to sell tooling. So it is definitely a team effort with the distribution channel.

我認為這是兩者的結合。在某些情況下，其中一些小型加工車間非常小，甚至沒有經銷商覆蓋。因此，我們針對這些小客戶進行了數字營銷。在許多情況下，他們可能會通過我們的供應鏈、我們的渠道合作夥伴，最終可能會通過分銷渠道直接進行查詢。我們正在與我們的渠道合作夥伴一起工作，以確保我們能夠接觸到這些公司，無論它是通過分銷返回還是直接通過我們的網站返回，我們通過我們的內部銷售組織接收查詢，它不會對我們很重要。我們仍將出售工具。所以這絕對是分銷渠道的團隊努力。

So my first question, obviously, growth still remains pretty strong here in the Americas. I'm just curious, are you starting to see any benefit at all from the infrastructure stimulus package that got passed last November? Or do you expect a lot of that to still be on the come in calendar year '23?

所以我的第一個問題，顯然，美洲的增長仍然非常強勁。我很好奇，您是否開始從去年 11 月通過的基礎設施刺激計劃中看到任何好處？還是您希望其中的很多內容在 23 年的日曆年中仍然存在？

I think it's still on to come. We really haven't seen any -- we've seen a lot of inquiries and quotes, but it hasn't translated into business. You said calendar year '23, I think we might see it in our fiscal year '24 because I'm not sure that even over the next 6 months or 8 months, the trend of just a lot of inquiries, but no business, I'm not sure that's going to change. So it seems to be taking longer for these to turn into projects. That could be a little bit because inflation is putting pressure on some of these projects. Also, frankly, some of these companies are still dealing with temporary supply chain issues. So for us, I think it's going to be more of a fiscal year '24 subject

我認為它還在繼續。我們真的沒有看到任何 - 我們已經看到了很多詢問和報價，但它還沒有轉化為業務。你說 23 年日曆年，我想我們可能會在 24 財年看到它，因為我不確定即使在接下來的 6 個月或 8 個月內，只有很多詢問的趨勢，但沒有業務，我我不確定這會改變。因此，將這些轉化為項目似乎需要更長的時間。這可能是因為通貨膨脹給其中一些項目帶來了壓力。另外，坦率地說，其中一些公司仍在處理暫時的供應鏈問題。所以對我們來說，我認為這將更像是一個 24 財年的主題

I'm just curious that the force majeure that you referenced earlier. Can you maybe provide a little bit more specifics around that? Is it very much a customer-specific issue? What particular components were they supplying into you? Just any other color there would be helpful.

我只是好奇你之前提到的不可抗力。你能提供更多的細節嗎？這在很大程度上是客戶特定的問題嗎？他們向您提供了哪些特定組件？任何其他顏色都會有幫助。

I would say that it's a raw material to one of our infrastructure powder-producing plants. So it's not specific to any customer because that infrastructure business really feeds the raw material that we use to make inserts and cutting tools in addition to the products inside infrastructure. So it's kind of applies across the whole business, but it's definitely limited to a supplier that's feeding a plant, a couple of plants, and that disruption sort of permenates through not only infrastructure, but there's a little bit of that knock-on effect into metal cutting but it's not affecting one customer. I would also emphasize that our customers actually are not going to see any disruption. This is really about, we've managed to put another source of supply and we avoided any production disruption. It's really though that, that alternate supply is more expensive and the faster we can mitigate it, the better

我會說它是我們基礎設施粉末生產廠之一的原材料。所以它並不特定於任何客戶，因為除了基礎設施內部的產品之外，基礎設施業務確實提供了我們用來製造刀片和切削工具的原材料。所以它在某種程度上適用於整個業務，但它絕對僅限於為一家工廠、幾家工廠提供食物的供應商，這種破壞不僅滲透到基礎設施中，而且還有一點連鎖反應金屬切割，但它不會影響一個客戶。我還要強調，我們的客戶實際上不會看到任何中斷。這真的是關於，我們已經設法提供了另一個供應來源，我們避免了任何生產中斷。確實如此，替代供應更昂貴，我們越快緩解它越好

As I said, this quarter, it's another data point, I think, to demonstrate our ability to advance our strategic initiatives and also our ability to secure what I believe is really market-leading positions. Also just as a quick reminder, I encourage everyone to review our third annual ESG report, which was published in September and is posted on our website. As always, I appreciate your interest and support in Kennametal, and please don't hesitate to reach out to Kelly, if you have any questions.

正如我所說，本季度，我認為這是另一個數據點，可以證明我們推進戰略計劃的能力，以及我們確保我認為真正處於市場領先地位的能力。另外，作為一個快速提醒，我鼓勵大家查看我們的第三份年度 ESG 報告，該報告於 9 月發布並發佈在我們的網站上。一如既往，我感謝您對 Kennametal 的關注和支持，如果您有任何問題，請隨時聯繫 Kelly。