Kennametal Inc (KMT) 2025 Q3 法說會逐字稿

Good morning. I would like to welcome everyone to Kennametals' third quarter and fiscal 2025 earnings conference call. (Operator Instructions) Please note, this event is being recorded.

早安.歡迎大家參加肯納金屬公司 2025 財年第三季和收益電話會議。（操作員指示）請注意，此事件正在被記錄。

I would now like to turn the conference over to Michael Pici, Vice President of Investor Relations. Please go ahead.

現在，我想將會議交給投資者關係副總裁 Michael Pici。請繼續。

Thank you, operator. Welcome, everyone, and thank you for joining us to review Kennametals' third-quarter fiscal 2025 results. This morning, we issued our press release and posted our presentation slides on our website. We will be referring to that slide deck throughout today's call. I'm Michael Pici, Vice President of Investor Relations. Joining me on the call today are Sanjay Chowbey, President and Chief Executive Officer; and Pat Watson, Vice President and Chief Financial Officer.

謝謝您，接線生。歡迎大家，感謝您與我們一起回顧肯納金屬公司 2025 財年第三季的業績。今天早上，我們發布了新聞稿，並在我們的網站上發布了簡報幻燈片。在今天的電話會議中，我們將一直參考該投影片。我是投資者關係副總裁 Michael Pici。今天與我一起參加電話會議的還有總裁兼執行長 Sanjay Chowbey 和副總裁兼財務長 Pat Watson。

After Sanjay 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.

在桑杰和帕特發表完準備好的演講後，我們將開放提問環節。此時，我想提請您注意我們的前瞻性揭露聲明。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業績或成就與此類陳述中表達或暗示的結果或成就有重大差異。

These risk factors and uncertainties are detailed in Kennametal's SEC filings. In addition, we will be discussing non-GAAP financial measures on the call today. Reconciliations to GAAP financial measures that we believe are most directly comparable can be found at the back of the slide deck and on our Form 8-K on our website.

這些風險因素和不確定性在肯納金屬公司提交給美國證券交易委員會的文件中進行了詳細說明。此外，我們將在今天的電話會議上討論非公認會計準則財務指標。我們認為最直接可比較的與 GAAP 財務指標的對帳可以在投影片背面和我們網站上的 8-K 表格中找到。

And with that, I'll turn the call over to you, Sanjay.

說完這些，我將把電話交給你，桑傑。

Thank you, Mike. Good morning, and thank you for joining us. I'll start the call today with some general comments on how we are advancing our key initiatives, and then provide a review of the quarter and market conditions, followed by some key customer wins, and finally, an overview on the current tariff situation. Then Pat will cover the quarterly financial results, as well as the fiscal '25 outlook. Lastly, I'll make some summary comments and then open the call for questions.

謝謝你，麥克。早安，感謝您加入我們。今天，我將首先就我們如何推進關鍵舉措發表一些總體評論，然後回顧本季和市場狀況，接著介紹一些關鍵客戶的成功案例，最後概述當前的關稅情況。然後，帕特將介紹季度財務業績以及 25 財年展望。最後，我將做一些總結性評論，然後開始提問。

Beginning on slide 3. So let me start by saying that I am pleased by how the team executed this quarter and focused on advancing our key initiatives. At the beginning of the third quarter, we announced a new restructuring action to lower structural costs by reducing employment costs and consolidating manufacturing operations. To that end, in mid-April, we successfully seized operations in our Greenfield, Massachusetts plant.

從投影片 3 開始。首先我要說的是，我對團隊本季的執行情況以及推進我們的關鍵舉措的重點感到滿意。第三季初，我們宣布了一項新的重組措施，透過降低僱用成本和整合製造業務來降低結構性成本。為此，我們在四月中旬成功恢復了馬薩諸塞州格林菲爾德工廠的運作。

Commercially, we continue to execute on our share capture initiatives across various end markets, despite overall market weakness. While we have recently seen a few positive macro data points on industrial production in the US, most of our markets have been modestly declining for over 30 months now.

從商業角度來看，儘管整體市場疲軟，但我們仍繼續在各個終端市場實施我們的市場份額爭奪計劃。雖然我們最近看到了美國工業生產的一些積極的宏觀數據點，但我們的大多數市場已經連續 30 多個月出現小幅下滑。

And while external factors are outside of our control, we remain focused on what we can control. The team continues to execute on our growth initiatives, including in Aerospace and Defense. And we believe our performance is broadly in line, if not better than the competition. A bit later in the call, I'll cover some of our more notable commercial success stories for the quarter.

儘管外部因素是我們無法控制的，但我們仍然專注於我們能夠控制的事情。該團隊繼續執行我們的成長計劃，包括在航空航天和國防領域。我們相信，我們的表現與競爭對手大致相同，甚至更好。稍後在電話會議中，我將介紹本季一些更值得注意的商業成功案例。

Now let's walk through the summary of quarterly results. Sales decreased 6% year over year, with Metal Cutting sales declining 4% organically and Infrastructure declining 2% organically. We saw broad yet modest weakness across our three regions, with EMEA as expected remaining the slowest market, down 4% on a constant currency basis. Overall sales were slightly below the midpoint of our outlook and below our normal sequential second-quarter to third-quarter sales improvement.

現在讓我們來回顧一下季度業績摘要。銷售額較去年同期下降 6%，其中金屬切割銷售額有機下降 4%，基礎設施銷售額有機下降 2%。我們發現三個地區都普遍存在輕微的疲軟跡象，其中歐洲、中東和非洲地區一如預期仍然是成長最慢的市場，以固定匯率計算下降了 4%。整體銷售額略低於我們預期的中點，也低於第二季至第三季正常的連續銷售成長。

Adjusted EPS was above our expectations, fueled mainly from an advanced manufacturing tax credit, which Pat will discuss in more detail. We also achieved approximately $6 million of restructuring savings in the quarter. We are on pace to achieve the $15 million run rate savings we committed to in January. Looking ahead, we tightened our sales outlook and raised the EPS outlook to reflect favorable third-quarter performance. Pat will provide more details on the outlook in his prepared remarks.

調整後的每股盈餘高於我們的預期，主要得益於先進製造業稅收抵免，Pat 將對此進行更詳細的討論。本季我們也實現了約 600 萬美元的重組節約。我們正在按計劃實現 1 月份承諾的 1500 萬美元運行成本節省目標。展望未來，我們收緊了銷售預期，並提高了每股收益預期，以反映第三季的良好業績。帕特將在其準備好的演講中提供有關前景的更多細節。

From an end market perspective, sales declined across all end markets except Aerospace and Defense, which increased 7%, propelled by defense project winds in Infrastructure. Transportation and General Engineering were largely impacted by market conditions in EMEA and the Americas, primarily within the Metal Cutting segment. Earthworks within the Infrastructure segment was impacted by lower mining activity in the Americas and Asia Pacific.

從終端市場角度來看，除航空航太和國防市場外，所有終端市場的銷售額均出現下降，而航空航太和國防市場的銷售額則成長了 7%，這主要得益於基礎設施領域國防項目的推動。運輸和通用工程在很大程度上受到歐洲、中東和非洲地區以及美洲市場狀況的影響，主要是在金屬切割領域。基礎設施部門的土方工程受到美洲和亞太地區採礦活動減少的影響。

While we are seeing short-term pressures across our end markets, we remain confident in the long-term megatrends for industrial production. We expect to see positive trends from a growing middle class impacting General Engineering and medical applications. We also expect increasing long-term demand for Energy, including powder generation for data centers, opportunities for growth in hybrid vehicle applications, and a strong order book for Aerospace and Defense customers.

雖然我們看到終端市場面臨短期壓力，但我們對工業生產的長期大趨勢仍然充滿信心。我們預計，不斷壯大的中產階級將對通用工程和醫療應用產生正面影響。我們也預計能源的長期需求將持續成長，包括資料中心的粉末生產、混合動力汽車應用的成長機會以及航空航太和國防客戶的強勁訂單。

Turning to profitability, adjusted EPS increased to $0.47 compared to $0.30 in the prior-year quarter. While volume were lower than the prior-year period, restructuring benefits, the absence of price raw headwinds, which occurred in the prior year, and the advanced manufacturing tax credit helped to increase profitability. As part of our capital allocation strategy, We continued our share repurchase program with $25 million of shares bought back during the quarter, and we paid $15 million in dividends.

談到獲利能力，調整後的每股收益從去年同期的 0.30 美元增至 0.47 美元。雖然銷量低於去年同期，但重組效益、去年同期不存在的價格原始阻力以及先進製造業稅收抵免有助於提高獲利能力。作為我們資本配置策略的一部分，我們繼續執行股票回購計劃，本季回購了 2,500 萬美元的股票，並支付了 1,500 萬美元的股息。

In the quarter, we also saw the uncertainty surrounding tariffs take center stage globally. While the economic impact of recent trade policies remain fluid, I will provide some insight on potential impact and mitigation actions in a few moments. Finally, let me say that we remain committed to executing on our value creation pillars to deliver above-market growth, continuous improvement to drive margin improvement, and optimization across our product and business portfolios. We have more work to do in all these areas, and I look forward to updating you on our progress as appropriate.

本季度，我們也看到圍繞關稅的不確定性成為全球關注的焦點。雖然近期貿易政策的經濟影響仍不確定，但我稍後將就潛在影響和緩解措施提供一些見解。最後，我要說的是，我們將繼續致力於執行我們的價值創造支柱，實現高於市場的成長、持續改進以推動利潤率的提高，並優化我們的產品和業務組合。我們在所有這些領域還有很多工作要做，我期待著適時向你們通報我們的進展。

Now turning to slide 4, I want to take a moment to provide commentary on our end markets for the full year. As I stated earlier, we have tightened our fiscal '25 full-year sales outlook to reflect the latest forecasts of specific market drivers and general market conditions. By end market, the top section shows the assumptions we had in our prior outlook compared to the assumptions in our current outlook.

現在翻到投影片 4，我想花點時間對我們全年的終端市場進行評論。正如我之前所說，我們已經收緊了 25 財年全年銷售預期，以反映對特定市場驅動因素和一般市場狀況的最新預測。按終端市場，頂部部分顯示了我們先前展望中的假設與當前展望中的假設的對比。

The bottom section of the slide show some of the key contributing factors by end market. First, General Engineering. The key factors that drive our expectations are external IPI forecasts for the US and EMEA regions and PMI data in China. As I noted earlier, market conditions in EMEA have been challenging this fiscal year. External forecasts for IPI in EMEA also remained down for the first half of calendar year 2025.

幻燈片的底部顯示了終端市場的一些關鍵影響因素。第一，通用工程。影響我們預期的關鍵因素是美國和 EMEA 地區的外部 IPI 預測以及中國的 PMI 數據。正如我之前提到的，本財年歐洲、中東和非洲地區的市場狀況充滿挑戰。對 2025 年上半年 EMEA 地區 IPI 的外部預測也保持下降。

The US IPI forecast is expected to be flat in the first half of calendar year '25, and China PMI remains unchanged as well. Taken together at the midpoint, we anticipate General Engineering to remain down slightly year over year, as previously communicated. Second is Transportation. The key external indicator we track here is IHS light vehicle production.

預計美國IPI在25年上半年將持平，中國PMI也將維持不變。綜合考慮中間值，我們預計通用工程的同比收入將略有下降，正如之前所傳達的那樣。第二是交通運輸。我們在此追蹤的關鍵外部指標是 IHS 輕型車產量。

The most recent IHS estimate projects production to be down 1%, which is consistent with the previous estimate. Once again, the pressure is primarily in EMEA, with a slight slowdown in the Americas. It has been well documented the pressure OEMs in EMEA are facing. Given these production forecasts and customer challenges, we continue to expect the end market to be down year over year.

IHS 最新預測預計產量將下降 1%，這與先前的預測一致。再次，壓力主要集中在歐洲、中東和非洲地區，美洲地區則略有放緩。有充分的證據表明，歐洲、中東和非洲地區的原始設備製造商 (OEM) 面臨壓力。鑑於這些生產預測和客戶挑戰，我們繼續預期終端市場將年減。

Third, our expectations for Energy and Earthworks remain consistent with previous expectations. US land-based rig counts are forecasted to decline, and sentiment among our customers remain cautious as the price of oil has fallen. We expect to see normal seasonality in the construction market within Earthworks, while mining activity continues to decline in China and we expect lower US coal exports.

第三，我們對能源和土方工程的預期與先前的預期保持一致。預計美國陸上鑽井數量將下降，由於油價下跌，我們的客戶情緒仍然謹慎。我們預計土方工程建築市場將呈現正常的季節性，而中國的採礦活動將繼續下滑，我們預計美國煤炭出口將下降。

Finally, expectations for Aerospace and Defense are unchanged, with a slight increase year-over-year as the aerospace industry steadily recovers from supply chain and OEM production issues. In conversations with our customers and channel partners, there is a lot of discussion on the uncertainties surrounding tariffs. With that, turning to slide 5, I want to take some time to provide commentary on tariffs and how we are planning to mitigate the direct impact. Let me start by saying that it is our intention to fully mitigate the cost implications of tariffs. Near term, we expect headwinds as we implement the mitigation actions.

最後，對航空航天和國防的預期保持不變，隨著航空航天業從供應鏈和 OEM 生產問題中穩步復甦，預期同比略有增長。在與我們的客戶和通路合作夥伴的對話中，我們對關稅的不確定性進行了大量討論。接下來，翻到第 5 張投影片，我想花點時間對關稅以及我們計劃如何減輕直接影響進行評論。首先我要說的是，我們的目的是全面減輕關稅的成本影響。短期內，我們預期在實施緩解措施時會遇到阻力。

This slide provides a summary of how tariffs are projected to impact Canada globally and the actions underway to fully mitigate them. As you can see, we have bilateral trade globally. The estimated annual impact of the additional costs associated with the tariffs that were in effect as of April 30th is approximately $80 million.

本投影片概述了關稅預計將如何影響加拿大的全球影響以及為全面緩解關稅而採取的行動。正如你所看到的，我們在全球範圍內有雙邊貿易。截至 4 月 30 日生效的關稅所造成的額外成本的年度影響估計約為 8000 萬美元。

From a mitigation standpoint, our actions include, first, utilizing our global footprint to optimize product flow; second, evaluating alternative supply options and opportunities to minimize the impact of shipments between regions; third, rebalancing production capacity. Finally, while we are taking actions to minimize impact on our customers, we are implementing tariff surcharges as appropriate. We are also seeing the opportunities across both our segments to capture market share, including powder sales, utilizing our US footprint.

從緩解的角度來看，我們的行動包括：第一，利用我們的全球影響力來優化產品流；第二，評估替代供應方案和機會，以盡量減少區域間運輸的影響；第三，重新平衡生產能力。最後，我們正在採取措施盡量減少對客戶的影響，同時適當徵收關稅附加費。我們也看到了利用我們在美國的業務來佔領市場份額（包括粉末銷售）的機會。

Collectively, through all the actions I've just outlined, we are committed to fully mitigating the impact of tariffs and pursuing new potential growth opportunities. That said, the tariff landscape remains extremely fluid, and we continue to monitor the situation and will adapt and evolve our plans accordingly. Turning to slide 6, I want to touch on some customer wins that demonstrate our continued focus on advancing our growth initiatives across both segments.

總的來說，透過我剛才概述的所有行動，我們致力於全面減輕關稅的影響並尋求新的潛在成長機會。儘管如此，關稅情況仍然極不穩定，我們將繼續監測局勢，並相應地調整和改進我們的計劃。翻到第 6 張投影片，我想談談一些客戶的成功案例，這些案例顯示我們繼續致力於推進兩個領域的成長計畫。

Let's start with Metal Cutting. First, we secured an initial order with an OEM within the Aerospace and Defense end market. Our tooling helped reduce manufacturing cycle time while meeting challenging specifications. Next, within the General Engineering end market, we captured an order to provide indexable drills to an industrial pump manufacturer. Our solution exceeded the customer's expectations for lead time and performance. Within Transportation, we provided a customized and differentiated solution to a manufacturer of high-speed railway switches.

讓我們從金屬切削開始。首先，我們與航空航太和國防終端市場的一家 OEM 廠商簽訂了初始訂單。我們的工具有助於縮短製造週期，同時滿足具有挑戰性的規格。接下來，在通用工程終端市場，我們獲得了向工業泵浦製造商提供可轉位鑽頭的訂單。我們的解決方案超越了客戶對交貨時間和性能的期望。在交通運輸領域，我們為高速鐵路道岔製造商提供了客製化、差異化的解決方案。

Now moving to our Infrastructure segment, in the Energy end market, our conformer-clad corrosion resistance solutions improve the production process for our customer in the battery industry. Within Earthworks, we developed a custom solution for a trenching and mining equipment customer to meet their demanding needs. As you can see, we provide innovative and effective solutions to a very diverse set of applications for customers around the world.

現在轉向我們的基礎設施部門，在能源終端市場，我們的符合體包覆的耐腐蝕解決方案改善了電池產業客戶的生產流程。在 Earthworks 內部，我們為挖溝和採礦設備客戶開發了客製化解決方案，以滿足他們的嚴苛需求。正如您所看到的，我們為世界各地的客戶提供針對各種應用的創新而有效的解決方案。

Now let me turn the call over to Pat, who will review the third-quarter financial performance and the outlook.

現在，我將把電話轉給帕特，他將回顧第三季的財務表現和前景。

Thank you, Sanjay. And good morning, everyone. I will begin on slide 7 with a review of Q3 operating results. The quarter's results show that we continue to execute our initiatives in the face of weak market conditions. Sales were down 6% year over year, with an organic decline of 3% and unfavorable foreign currency exchange of 3%. The sales performance this quarter was slightly below the midpoint of the outlook we provided last quarter.

謝謝你，桑傑。大家早安。我將從第 7 張投影片開始回顧第三季的經營業績。本季的結果表明，儘管市場狀況疲軟，我們仍在繼續執行我們的措施。銷售額較去年同期下降 6%，其中有機下降 3%，外匯匯率不利影響下降 3%。本季的銷售業績略低於我們上季提供的預期中位數。

Relative to those expectations, and as you heard from Sanjay, we experienced continued pressure in EMEA and the Americas, which impacted our General Engineering, Transportation, and Earthwork end markets. Energy was in line with expectations. Year over year, we experienced modest weakness in all end markets and regions, except for Aerospace and Defense. I will provide more color when reviewing the segment performance in a moment.

相對於這些預期，正如您從桑傑那裡聽到的，我們在歐洲、中東和非洲地區以及美洲地區持續面臨壓力，這影響了我們的通用工程、運輸和土方工程終端市場。能源符合預期。與去年同期相比，除航空航太和國防領域外，所有終端市場和地區均出現了輕微疲軟。我稍後會在回顧該部分錶現時提供更多細節。

Operating expense declined approximately $5 million, benefiting from restructuring savings and favorable foreign exchange despite year-over-year wage inflation. And adjusted EBITDA and operating margins were 17.9% and 10.3%, respectively, versus 14.2% and 8.1% in the prior-year quarter.

儘管薪資較去年同期上漲，但營運費用仍下降了約 500 萬美元，這得益於重組節省和有利的外匯匯率。調整後的 EBITDA 和營業利潤率分別為 17.9% 和 10.3%，而去年同期分別為 14.2% 和 8.1%。

During the quarter, we had an approximate $10 million benefit from an advanced manufacturing production credit under the Inflation Reduction Act. We also achieved $6 million in savings from restructuring programs, $3 million of which is related to the employment actions announced in January of this year. Lastly, foreign exchange was a $3 million headwind this quarter.

本季度，我們根據《通貨膨脹削減法案》從先進製造業生產信貸中獲得了約 1,000 萬美元的收益。我們也透過重組計畫節省了 600 萬美元，其中 300 萬美元與今年 1 月宣布的就業行動有關。最後，本季外匯交易造成 300 萬美元的不利影響。

The adjusted effective tax rate decreased year over year to 22.8%, primarily driven by a benefit from the advanced manufacturing, production credit, and geographical mix. Adjusted earnings per share were $0.47 in the quarter versus $0.30 in the prior-year period. The main drivers of our EPS performance are highlighted on the bridge on slide 8.

調整後有效稅率年減至 22.8%，主要得益於先進製造業、生產信貸和地理組合帶來的好處。本季調整後每股收益為 0.47 美元，去年同期為 0.30 美元。我們的 EPS 表現的主要驅動因素在第 8 張投影片的橋上突出顯示。

The year-over-year effect of operations this quarter was positive $0.06. This improvement reflects the absence of unfavorable price raw material which occurred in the prior year, higher price, and incremental restructuring benefits, partially offset by lower sales and production volume, and higher wages and general inflation.

本季營運效益年減為正 0.06 美元。這項改善反映了去年原物料價格不利因素的消除、物價上漲以及增量重組收益，但銷售量和產量下降、薪資上漲以及普遍通膨等因素部分抵銷了這一改善。

We also had a $0.10 benefit from the Advanced Manufacturing Production Credit, approximately $0.08 of which is related to a cumulative catch-up of prior-period material costs. Inclusive of the effect on the tax rate, the Advanced Manufacturing Production Credit had an approximate $0.13 impact on adjusted EPS. Unfavorable currency and pension effects on EPS were $0.02 and $0.01 respectively. Other reflects benefits from lower share count and interest, which contributed $0.02.

我們也從先進製造業生產信貸中獲得了 0.10 美元的收益，其中約 0.08 美元與前期材料成本的累積追趕有關。包括對稅率的影響在內，先進製造業生產信貸對調整後每股盈餘的影響約為 0.13 美元。貨幣和退休金對每股盈餘的不利影響分別為 0.02 美元和 0.01 美元。其他反映了股票數量和利息減少的好處，貢獻了 0.02 美元。

Slides 9 and 10 provide an overview of our segment performance. Reported Metal Cutting sales were down 7% compared to the prior-year quarter, with a 4% organic decline and unfavorable foreign currency exchange of 3% by region on a constant currency basis. The Americas and Asia-Pacific declined 1% each, and EMEA declined 6%. In the Americas, year-over-year performance was affected by lower industrial production activity in General Engineering, partially offset by a modest improvement in the Transportation end market.

投影片 9 和 10 概述了我們的分部表現。報告的金屬切削銷售額與去年同期相比下降了 7%，其中有機下降 4%，以固定匯率計算，各地區外匯匯率不利下降 3%。美洲和亞太地區分別下降 1%，歐洲、中東和非洲地區下降 6%。在美洲，年比業績受到通用工程領域工業生產活動下降的影響，但運輸終端市場的溫和改善部分抵消了這一影響。

In Asia-Pacific, we saw lower production volumes affect the General Engineering end market, partially offset by project wins in Transportation. EMEA's year-over-year decline reflects weakness in the General Engineering and Transportation end markets, partially offset by strength in Aerospace and Defense. In other end markets, Energy grew 2% this quarter from customer order timing in Asia Pacific. Aerospace and Defense was flat year over year.

在亞太地區，我們發現產量下降影響了通用工程終端市場，但運輸領域的專案勝利部分抵消了這一影響。歐洲、中東和非洲地區的同比下降反映了通用工程和運輸終端市場的疲軟，但被航空航天和國防市場的強勁表現部分抵消。在其他終端市場，本季亞太地區能源銷售額因客戶訂單時間而成長了 2%。航空航太和國防領域較去年同期持平。

We saw easing supply chains and improved build rates in EMEA that were offset by lower production in Asia Pacific from a customer quality issue and the slow ramp-up from the strike in the Americas. Transportation declined 2% year over year from the overall slowdown in EMEA, partially offset by project wins in Asia Pacific and higher production volumes in the Americas. And lastly, General Engineering declined 5% year over year from lower production activity, primarily in EMEA and the Americas.

我們看到歐洲、中東和非洲地區的供應鏈放鬆，生產力有所提高，但因客戶品質問題導致的亞太地區產量下降以及美洲罷工導致的生產速度緩慢，抵消了這種影響。由於歐洲、中東和非洲地區整體經濟放緩，運輸業年減 2%，但亞太地區的專案勝利和美洲地區的產量增加部分抵消了這一影響。最後，通用工程業務因生產活動減少（主要在歐洲、中東和非洲地區以及美洲地區）而較去年同期下降 5%。

Metal Cutting adjusted operating margin of 9.6% decreased 120 basis points year over year, primarily from lower sales and production volumes, unfavorable foreign exchange, and higher wages. These factors are partially offset by improved pricing, incremental year-over-year restructuring savings of approximately $4 million, and lower raw material costs. Additionally, as Sanjay previously mentioned, we ceased production at our Greenfield, Massachusetts facility that April.

金屬切割調整後的營業利潤率為 9.6%，年減 120 個基點，主要原因是銷售和生產量下降、外匯不利以及薪資上漲。這些因素被價格上漲、年比重組節省約 400 萬美元以及原材料成本下降部分抵消。此外，正如桑傑之前提到的，我們在當年 4 月停止了位於馬薩諸塞州格林菲爾德工廠的生產。

Turning to slide 10 for Infrastructure, reported Infrastructure sales declined 4% year over year, with an organic decline of 2% and unfavorable foreign currency exchange of 2%. Regionally, on a constant currency basis, EMEA sales increased by 5%, Asia Pacific declined by 1%, and in the Americas, sales declined 5%. EMEA growth was primarily driven by Defense projects and higher activity in Earthworks, partially offset by lower industrial activity and project timing affecting General Engineering.

翻到第 10 張投影片中的基礎設施部分，報告指出基礎設施銷售額年減 4%，其中有機下降 2%，外匯匯率不利影響下降 2%。從地區來看，以固定匯率計算，歐洲、中東和非洲地區的銷售額成長了 5%，亞太地區的銷售額下降了 1%，美洲地區的銷售額下降了 5%。歐洲、中東和非洲地區的成長主要受到國防項目和土方工程活動增加的推動，但被工業活動的減少和影響通用工程的項目時間所部分抵消。

Asia Pacific declined primarily from lower volume in underground mining as mine production is lower in response to lower coal prices, which was partially offset by project timing in Energy and General Engineering. The decline in the Americas was primarily from lower underground mining activity in Earthworks and lower production activity in General Engineering, partially offset by Aerospace and Defense project wins and higher construction activity.

亞太地區的下降主要由於地下採礦量的減少，因為煤炭價格下跌導致礦山產量下降，但能源和通用工程的專案時間表部分抵消了這一影響。美洲地區的下降主要由於土方工程地下採礦活動的減少和通用工程生產活動的減少，但被航空航天和國防項目的中標和建築活動的增加部分抵消。

Looking at sales by end market on a constant currency basis, continued execution of our growth initiatives drove a 28% increase in Aerospace and Defense sales with good growth and execution in both EMEA and the Americas Defense. While the project nature of this business can make it lumpy, it's an example of how our team is executing on commercial opportunities.

以固定匯率計算，從終端市場銷售額來看，我們持續執行的成長計畫推動了航空航太和國防銷售額成長 28%，其中歐洲、中東和非洲地區以及美洲國防市場均實現了良好的成長和執行。雖然這項業務的專案性質可能會使其變得不順利，但它是我們團隊如何抓住商業機會的一個例子。

Energy declined 3% mainly in the Americas from lower US land rig count and partially offset by project timing in Asia. General Engineering declined 4% from lower industrial activity in the Americas and EMEA. And lastly, Earthworks declined 7% from lower underground mining activity in the Americas and lower volume in Asia Pacific, which was partially offset by higher activity in EMEA.

能源產量下降 3%，主要由於美國陸地鑽機數量減少，且因亞洲專案時間安排而部分抵銷。由於美洲和歐洲、中東和非洲地區工業活動減少，通用工程業務下降了 4%。最後，Earthworks 業務下滑了 7%，因為美洲地下採礦活動減少，亞太地區採礦量減少，但 EMEA 地區採礦活動增加部分抵消了這一下滑。

Adjusted operating margin increased 770 basis points year over year to 11.5% from the advanced manufacturing production credit of approximately $10 million and the absence of unfavorable price raw timing, which occurred in the prior-year period. We also achieved year-over-year restructuring savings of approximately $2 million. These factors were partially offset by lower sales and production volumes.

調整後的營業利潤率年增 770 個基點，達到 11.5%，這得益於約 1000 萬美元的先進製造生產信貸以及去年同期沒有出現的不利價格原始時機。我們也實現了同比約 200 萬美元的重組節約。這些因素被銷售量和產量的下降部分抵消。

Now turning to slide 11 to review our free operating cash flow and balance sheet, our third-quarter year-to-date cash flow from operating activities was $130 million compared to $163 million in the prior-year period. The change in net cash flow from operating activities was driven primarily by working capital changes, mainly increased inventory, as a result of lower demand. Our third-quarter year-to-date free operating cash flow decreased to $63 million from $84 million.

現在翻到第 11 張投影片來回顧我們的自由經營現金流和資產負債表，我們第三季迄今的經營活動現金流為 1.3 億美元，而去年同期為 1.63 億美元。經營活動淨現金流的變動主要是由於需求下降導致營運資本變動（主要是庫存增加）所致。我們第三季年初至今的自由經營現金流從 8,400 萬美元下降至 6,300 萬美元。

On a dollar basis, year over year, primary working capital fell to $654 million and on a percentage of sales basis decreased to 31.6%. Net capital expenditures decreased to $67 million compared to $79 million in the prior year. In total, we returned $40 million to our shareholders through our share repurchase and dividend programs.

以美元計算，與去年同期相比，主要營運資本下降至 6.54 億美元，以銷售額百分比計算則下降至 31.6%。淨資本支出從上年的 7,900 萬美元下降至 6,700 萬美元。總體而言，我們透過股票回購和股利計畫向股東返還了 4,000 萬美元。

During the quarter, we repurchased 1.1 million shares or $25 million under our $200 million authorization. And as we have every quarter since becoming a public company over 50 years ago, we paid a dividend to our shareholders. We remain committed to returning cash to our shareholders. This commitment reflects our continued confidence and our ability to drive long-term growth and margin improvement to create shareholder value. Our balance sheet remains healthy, and we have no near-term debt refinancing requirements.

在本季度，我們根據 2 億美元的授權回購了 110 萬股，即 2,500 萬美元。自 50 多年前成為上市公司以來，我們每季都會向股東派發股息。我們仍然致力於向股東返還現金。這項承諾體現了我們持續的信心以及推動長期成長和利潤率提高以創造股東價值的能力。我們的資產負債表依然健康，且我們近期沒有債務再融資需求。

At quarter end, we had a combined cash and revolver availability of approximately $787 million, and we're well within our financial covenants. The full balance sheet can be found on slide 16 in the appendix. Now on slide 12, regarding our full-year outlook, we now expect FY25 sales to be between $1.97 billion and $1.99 billion, with volume ranging from negative 5% to negative 4% and net price realization of approximately 2%.

截至本季末，我們的現金和循環信貸餘額總計約為 7.87 億美元，並且我們完全遵守財務契約。完整的資產負債表可以在附錄的第 16 張投影片中找到。現在在第 12 張幻燈片中，關於我們的全年展望，我們現在預計 25 財年的銷售額將在 19.7 億美元至 19.9 億美元之間，銷量將在負 5% 至負 4% 之間，淨價實現率約為 2%。

As Sanjay noted, the expected market conditions in EMEA and the continued stagnation of industrial production in the US remain unchanged. We now anticipate an approximate 1% year-over-year headwind for foreign exchange based on the recently overall weaker US dollar. The foreign exchange sales headwind is now expected to be approximately $20 million at the midpoint of our updated outlook.

正如桑傑所指出的，歐洲、中東和非洲地區的預期市場狀況以及美國工業生產的持續停滯保持不變。由於近期美元整體走弱，我們目前預期外匯市場將年減約 1%。根據我們更新後的展望中位數，外匯銷售逆風預計約 2,000 萬美元。

Specifically, as it relates to Q4, however, we anticipate a foreign exchange sales tailwind of approximately $13 million sequentially. Year over year, we expect Aerospace and Defense to have slight growth, Transportation to decline, General Engineering, Earthworks, and Energy to decline slightly. From a cost perspective, we expect to offset raw material, wage, and general cost increases on a dollar basis, and tungsten prices are assumed to be stable at current levels.

具體來說，就第四季而言，我們預計外匯銷售額將環比成長約 1,300 萬美元。與去年同期相比，我們預計航空航太和國防將略有成長，運輸將下降，通用工程、土方工程和能源將略有下降。從成本角度來看，我們預計原材料、工資和一般成本的增加將以美元為基礎進行抵消，並且鎢價預計將穩定在當前水準。

Foreign exchange and non-cash pension expense are expected to be headwinds of $4 million each. Approximately $14 million of rollover savings from our previously announced restructuring initiatives have been included. Our outlook also includes the impact of the FY25 announced plant closures and restructuring actions, which combined are anticipated to generate approximately $15 million of annualized run rate savings by June 30.

預計外匯和非現金退休金支出將分別帶來 400 萬美元的阻力。我們先前宣布的重組計劃中約有 1,400 萬美元的展期節省已包含在內。我們的展望還包括 2025 財年宣布的工廠關閉和重組行動的影響，預計到 6 月 30 日，這些行動將產生約 1500 萬美元的年度運行率節省。

For fiscal '25, we have included approximately $7 million in savings related to these actions. At the end of the fiscal year, we expect to have achieved a $65 million savings run rate against our $100 million savings target. Depreciation and amortization is expected to be approximately $135 million, and we expect interest expense of approximately $27 million and an effective tax rate now of approximately 25%.

對於 25 財年，我們已將與這些行動相關的約 700 萬美元的節省納入考量。在本財政年度結束時，我們預計將實現 6,500 萬美元的節餘運行率，而我們的節餘目標是 1 億美元。預計折舊和攤銷約為 1.35 億美元，我們預計利息支出約為 2,700 萬美元，目前有效稅率約為 25%。

As a result of our performance in Q3, inclusive of the IRA tax credits and our current estimate of the impact of tariffs, we now expect adjusted EPS to be in the range of $1.30 to $1.45. This includes an approximate $0.05 negative effect from tariffs. As Sanjay outlined earlier regarding tariffs, we have several mitigation actions either implemented or in progress to fully mitigate the effects. We will provide an update on any impacts for FY26 on our August earnings call.

考慮到我們第三季的業績表現（包括個人退休帳戶 (IRA) 稅收抵免以及我們目前對關稅影響的估計），我們目前預計調整後每股收益將在 1.30 美元至 1.45 美元之間。這已包含關稅帶來的約 0.05 美元的負面影響。正如桑傑之前就關稅問題所概述的那樣，我們已經實施或正在採取多項緩解措施，以全面減輕其影響。我們將在 8 月的收益電話會議上提供有關 26 財年影響的最新資訊。

On the cash side, the full-year outlook for capital expenditures is now anticipated to be approximately $90 million, and the outlook for primary working capital is now 32% by fiscal year end. Taken together, we continue to expect free operating cash flow to be greater than 125% of adjusted net income.

現金方面，預計全年資本支出約 9,000 萬美元，預計到財年末主要營運資本將達 32%。綜合起來，我們繼續預期自由經營現金流將超過調整後淨收入的 125%。

And with that, I'll turn it back over to Sanjay.

說完這些，我會把發言權交還給桑傑。

Thank you, Pat. Turning to slide 13, let me take a few minutes to summarize. We remain focused on staying the course despite the highly volatile macro environment, and we are executing on our value creation initiatives to deliver a strong finish to fiscal '25. We are obviously in our fourth quarter right now, and we are actively planning for the new fiscal year, which begins July 1. I am looking forward to the conversation with you in August, where we will provide some color and context on several topics. including progress on my first year as CEO, our fiscal '26 annual outlook, and finally, an update on portfolio, footprint, and structural cost initiatives.

謝謝你，帕特。翻到第 13 張投影片，請容許我花幾分鐘時間進行總結。儘管宏觀環境極不穩定，我們仍將專注於堅持到底，並正在執行我們的價值創造計劃，以在 2025 財年取得強勁成績。顯然，我們現在正處於第四季度，我們正在積極規劃 7 月 1 日開始的新財年。我期待著八月份與您進行對話，屆時我們將就幾個主題提供一些背景信息，包括我擔任首席執行官第一年的進展、我們 26 財年的年度展望，以及最後的投資組合、足跡和結構性成本計劃的最新情況。

And with that, operator, please open the line for questions.

接線員，請打開熱線來回答問題。

(Operator Instructions) Angel Castillo, Morgan Stanley.

（操作員指示）摩根士丹利的 Angel Castillo。

Hi, good morning, and thank you for taking my question. I just wanted to talk about the outlook a little bit more, maybe particularly for the fourth quarter. So I think at this point, you talked a little bit about some green shoots and still kind of I think assuming a little bit of sequential improvement in some of the organic growth.

大家好，早安，感謝您回答我的問題。我只是想再多談談前景，特別是第四季的前景。所以我認為在這一點上，您談到了一些復甦跡象，我仍然認為一些有機增長會有一些連續的改善。

Can you talk about, quarter to date, what you're seeing in terms of kind of demand trends as you think about April and May, particularly across some of the key end markets and how that's kind of progressing? And particularly, if you could also parse that out between what's kind of industry specific versus share gain related?

您能否談談本季迄今為止，您對 4 月和 5 月的需求趨勢有何看法，特別是在一些主要終端市場，以及其進展如何？特別是，您是否可以分析出哪些是特定產業因素，哪些是與份額成長相關的因素？

Yes, Angel, good morning.

是的，安吉爾，早安。

Good morning, Angel.

早上好，安吉爾。

Yes, so I think at this point, we are continuing to see steady improvement. And as I outlined in our overall -- in the market trend slide, most of the things are staying about the same. As I have mentioned that General Engineering, the IPI, other than Europe, I think US and APAC basically staying relatively flat. EMEA continues to be slightly weak. Transportation, same. EMEA is weak, rest of the market relatively flat. Energy, definitely, sentiments are cautious right now with the customers. But again, for what we have said three months ago, very similar sentiment right now.

是的，所以我認為目前我們正在繼續看到穩定的改善。正如我在整體市場趨勢幻燈片中概述的那樣，大多數情況都保持不變。正如我所提到的，通用工程、IPI，除了歐洲，我認為美國和亞太地區基本上保持相對穩定。歐洲、中東和非洲地區持續略顯疲軟。交通也一樣。歐洲、中東和非洲地區表現疲軟，其餘市場相對穩定。毫無疑問，目前消費者的情緒是謹慎的。但是，正如我們三個月前所說的，現在我們的觀點非常相似。

In Earthworks, again, same thing, sentiments are similar, softness in US, coal exports. And then also demand in China versus capacity, no equation putting price pressure there. Aerospace Defense, slight improvement as things continue to get better with the OEM and the supply chain constraints. So I think at this point, we haven't seen anything different with respect to either buy ahead or any kind of impact of tariffs. So I think that we expect more or less a steady path for overall market at this point. In parallel, we'll of course gain some market share as we are outperforming them in both segments.

在 Earthworks 中，同樣的事情再次發生，情緒也類似，美國煤炭出口疲軟。然後還有中國的需求與產能，沒有方程式可以施加價格壓力。航空航太國防，隨著原始設備製造商和供應鏈約束不斷改善，情況略有改善。所以我認為目前為止，我們還沒有看到提前購買或任何關稅影響的任何不同。因此我認為我們預期目前整體市場或多或少會保持穩定。同時，由於我們在兩個領域的表現都優於他們，我們當然會獲得一些市場份額。

Yes, just one thing to give some color there on the Q4 sequential, Angel, and that is as we think about just reference the midpoint of the outlook here, a couple things to contemplate. Number one is we've got a pretty significant FX change from Q3 to Q4, so that's about a $13 million sales tailwind for us.

是的，Angel，只有一件事可以為第四季度的連續表現提供一些線索，那就是當我們考慮參考這裡前景的中點時，有幾件事需要考慮。首先，從第三季到第四季度，我們的外匯變化非常顯著，這對我們而言意味著約 1,300 萬美元的銷售額順風。

And once you kind of pull that out, some of the incremental revenue associated with tariff surcharge, you're going to get right back to a number that's much more normalized in terms of sequential performance, Q3 to Q4. And so underlying the outlook is really normality from a progression of the business moving into Q4 here.

一旦你將其提取出來，即與關稅附加費相關的一些增量收入，你就會回到一個在第三季到第四季的連續表現方面更加正常的數字。因此，從第四季度業務的進展來看，前景實際上是正常的。

Got it. That's very helpful. And then maybe could you just talk a little bit more about kind of the specific buckets you talked about on tariffs? You laid them out in this slide for mitigating the full $80 million. Can you just maybe quantify each of those in just a little bit more kind of color as to maybe which of those are kind of fully underway, which might take a little bit more time or work, and how we should think about them?

知道了。這非常有幫助。然後，您能否再多談談您談到的關稅的具體範圍？您在這張投影片中列出了減輕全部 8000 萬美元損失的方法。您能否更詳細地量化每個方面，哪些方面已經全面展開，哪些方面可能需要更多的時間或工作，以及我們應該如何看待它們？

Yes, I think at this point, we will not go into the quantification of each of the categories, but I can tell you on a high level first, repeating what I said in the prepared remarks, we are very confident that we'll fully mitigate the direct impact of tariffs. Now, first, the three items on the list there, it talks about how we are utilizing our global footprint in our supply chain network. And those things are in progress already.

是的，我認為目前我們不會對每個類別進行量化，但我可以先從高層次告訴你，重複我在準備好的發言中所說的話，我們非常有信心我們將完全減輕關稅的直接影響。現在，首先，清單上的三個內容談到了我們如何利用我們的全球供應鏈網路。這些事情已經在進行中了。

More than half or slightly more than half of our direct impact is related to what we do between US and China and then China to US. And those things, we already have begun implementation of some of those product moves and tooling moves and things like that. The rest of that is in progress. We intend to complete those things as we go.

在我們的直接影響中，超過一半或略多於一半與我們在美國和中國之間以及中國和美國之間的合作有關。而這些事情，我們已經開始實施一些產品移動、工具移動等等。其餘工作正在進行中。我們打算在前進的過程中完成這些事情。

We've already implemented tariff surcharges in the US for the Metal Cutting, and then we are also taking surgical actions on Infrastructure business from a surcharge perspective. So all in all, I will say the action implementation is coming along very well, and we are going to continue to implement the rest of the actions in a timely manner.

我們已經在美國對金屬切削行業實施了關稅附加費，並且我們還從附加費的角度對基礎設施業務採取了外科手術般的措施。總而言之，我想說行動實施進展非常順利，我們將繼續及時實施其餘行動。

That's very helpful. And just to clarify that, because I guess the point of my -- what I was trying to get across is maybe there's a $0.05 headwind from tariffs, I think, in the fourth quarter. But is the implication, therefore, that by the first quarter, you're going to be fully offsetting everything? And I'll get back in the queue. Thank you.

這非常有幫助。我只是想澄清一下，因為我想我的觀點是——我想表達的是，我認為第四季度關稅可能會帶來 0.05 美元的阻力。但這是否意味著到第一季你就能完全抵銷所有影響？我會回到隊列中。謝謝。

Yes, I think at this point, as Pat mentioned, the $0.05, some of the activities, obviously, tariffs was effective in the first part of April. We started to make sure that things have been very fluid as we all know, so we took started to take actions and notified our customers where we need to and also internal moves of tooling and production supply chain.

是的，我認為此時，正如帕特所提到的，0.05 美元，一些活動，顯然，關稅在 4 月初生效。我們開始確保事情進展順利，正如我們所知，所以我們開始採取行動，並在需要的地方通知我們的客戶，以及工具和生產供應鏈的內部變化。

So some of those things were in place by the end of April early May, and that's part of that. And then remaining actions will continue to be worked on. I think that's the reason for us to say that we do have risk in Q4. We expect to provide more detail when we talk in August exactly where we are. But like I said, we do intend to fully mitigate all the direct impact of tariffs.

因此，其中一些事情在 4 月底 5 月初就已經到位，這是其中的一部分。然後將繼續進行剩餘的行動。我認為這就是我們說第四季確實存在風險的原因。我們期望在八月討論我們所處的具體位置時提供更多細節。但正如我所說，我們確實打算完全減輕關稅的所有直接影響。

Thank you.

謝謝。

Steven Fisher, UBS.

瑞銀的史蒂文·費雪。

Thanks. Good morning. I just wanted to bridge a little bit on the morning -- on the quarter itself relative to the guidance you had previously and if we back out the IRA credit and tax benefits related to that. Just kind of curious what you think were the kind of the biggest surprises relative to what you had thought before. It seems like it might have been price versus cost.

謝謝。早安.我只是想在早上稍微談一下——關於本季度本身與您之前的指導相比的情況，以及我們是否取消與此相關的 IRA 抵免和稅收優惠。只是有點好奇，相對於您之前所想的，您認為最大的驚喜是什麼。這看起來就像是價格與成本之間的矛盾。

And I guess on the cost side of things, with tungsten prices having gone up in the last few months, I'm just kind of curious how you expect that to flow through over the next few months and how much you think you might need to raise pricing here just to manage that higher cost and when that might hit.

我想就成本方面而言，由於鎢價在過去幾個月裡上漲，我只是有點好奇您預計未來幾個月鎢價將如何上漲，以及您認為需要將價格提高多少才能控制更高的成本，以及何時可能達到這一水平。

Yes, so let's start with that, Steve. As we just think about -- tungsten has moved up here. I think -- as we think about like our second quarter, so the December quarter, we would have seen like an average tungsten price of [$335]. As we got into Q3 here, February, it was up just slightly, just I think low 340s. As we sit here today, it's closer to [$395] from an average perspective. So overall, I'll say the last 60, 45 days, we've seen that those prices come up.

是的，那我們就從這個開始吧，史蒂夫。正如我們所想的——鎢的價格已經上漲到這裡。我認為——當我們考慮第二季度，也就是 12 月季度時，我們會看到鎢的平均價格為[335美元]。當我們進入第三季度，也就是二月時，它略有上升，我認為只是 340 出頭。今天，從平均角度來看，這個價格更接近 [395 美元]。所以總的來說，我想說在過去的 60 到 45 天裡，我們看到這些價格上漲了。

As we normally talk about from a pricing standpoint, we do have some contracts, specifically in Infrastructure. In the Energy end market, they'll begin resetting. As that price rises, we'll see some favorable pricing come out of that as we move here into the fourth quarter. And then, depending on where tungsten rolls here over the next couple months, we'll probably see some additional favorability come through as well.

正如我們通常從定價的角度所談論的那樣，我們確實有一些合同，特別是在基礎設施方面。在能源終端市場，他們將開始重置。隨著價格上漲，進入第四季度，我們將看到一些有利的定價。然後，根據未來幾個月鎢的價格走勢，我們可能還會看到一些額外的有利因素。

In general, we always talk about from a cost structure perspective, the costs that tend to flow through the P&L lag by about two quarters. And so at the moment, we're still enjoying a cost base that's prior to the recent escalation here in prices. As we think about the third quarter and the margin performance, I'll just talk about EPS terms here.

一般來說，我們總是從成本結構的角度來談論，流入損益表的成本往往會落後約兩個季度。因此，目前，我們的成本基礎仍處於近期價格上漲之前。當我們考慮第三季和利潤率表現時，我在這裡只討論每股盈餘 (EPS) 條款。

Obviously, the big driver for us in terms of versus our expectations at the outset of the quarter was the advanced manufacturing tax credit, so that in and of itself sits at about $0.13 between the benefit of the tax credit itself and some favorability that also pulls through the effective tax rate. And so going into the quarter, we knew that that was a -- I'll call it a known unknown in terms of how much we would actually qualify. The Treasury regs for that were finalized in the December quarter. We worked through that.

顯然，與我們在本季度初的預期相比，對我們來說最大的推動力是先進製造業稅收抵免，因此，稅收抵免本身的收益與拉動有效稅率的一些優惠之間的差額約為 0.13 美元。因此，進入本季度，我們知道這是一個——就我們實際上能獲得多少資格而言，我稱之為已知的未知數。財政部的相關規定已於 12 月季度最終確定。我們努力解決了這個問題。

I think, at this point in time, we'll continue to get an ongoing benefit from that, but the surplus from a catch-up perspective, getting caught up to the regs, that's all behind us here in the third quarter. I think the other elements in terms of overall performance, and sales was pretty much aligned to where our expectations were. Cost structure came in a little better. I'd say a little bit of that was from restructuring. And we had a couple of things kind of break our way over the course of the quarter as well that helped us deliver the number.

我認為，在目前這個時間點，我們將繼續從中獲得持續的利益，但從追趕的角度來看，盈餘、趕上法規，這些在第三季都已經過去了。我認為整體表現和銷售方面的其他因素與我們的預期基本一致。成本結構略有改善。我想說其中一部分是來自重組。在本季度中，我們也取得了一些突破，幫助我們實現了這個數字。

Very, very helpful. I just wanted to ask a little bit about the competitive dynamics and see if there's any tariff-related relevance here. You cited some competitive pressures in the Americas in the Infrastructure, and I think it was specifically in Earthworks. I'm just curious kind of what's the source of that. And then sort of related potentially is to what extent the tariff regime is creating any competitive advantage that you might have in the United States? And do you think you need to prepare for kind of competitors to be reshoring up or moving operations to within the United States?

非常非常有幫助。我只是想問競爭動態，看看這裡是否與關稅有關。您提到了美洲在基礎建設方面的一些競爭壓力，我認為具體表現在土方工程方面。我只是有點好奇這件事的根源是什麼。那麼潛在的相關問題是，關稅制度在多大程度上為您在美國創造了競爭優勢？您是否認為需要為競爭對手重新在美國境內開展業務做好準備？

Yes, Steve, first, let me address the issue of the earth-cutting business comment on competitive pressure in the US and China. And then I'll come back to the overall competitive landscape and tariff. With respect to Earthworks, as we have said before, the coal exports coming out of US has been soft. And then in China itself, the demand versus capacity question has been lopsided for some time. So because of that, there has been price pressure, and we are able to compete and keep our business. But there is definitely some pressure on price from that.

是的，史蒂夫，首先，讓我來談談關於美國和中國競爭壓力的尖銳商業評論問題。然後我會回到整體競爭格局和關稅問題。關於 Earthworks，正如我們之前所說，美國的煤炭出口一直疲軟。而在中國本土，需求與產能之間的矛盾已經持續了一段時間。因此，存在價格壓力，我們能夠競爭並維持我們的業務。但這肯定會對價格造成一些壓力。

Now we have not mentioned or we are not seeing anything from a price perspective -- a price pressure perspective for any other business as such. Now coming to the overall competitive landscape, as we have said in our prepared remarks also that we are definitely keeping up or most likely performing better than our peers, especially who have reported in the public domain. And that has been there for several quarters now. And we believe our overall organic growth initiatives are working well.

現在我們還沒有提到，或者說我們沒有從價格角度看到任何其他業務的價格壓力角度。現在談到整體競爭格局，正如我們在準備好的評論中所說的那樣，我們肯定會跟上或很可能比我們的同行表現得更好，特別是那些在公共領域報道過的同行。這種情況已經持續了好幾個季度了。我們相信，我們的整體有機成長計劃進展順利。

Our commercial initiatives, our sales, marketing team, operations team have really been able to do a good job in customer service and able to provide good application support and continue to win. We believe that work will continue. We'll build upon that. For the time being, now again talking back about the tariff situation we do believe that as a company, in our industry, in cutting tool and web component business, we are better positioned than others based on our overall footprint that we have, strongly in the US.

我們的商業計劃、銷售、行銷團隊、營運團隊確實能夠做好客戶服務，能夠提供良好的應用程式支援並持續取勝。我們相信這項工作將會持續下去。我們將以此為基礎繼續努力。就目前而言，現在再次談論關稅情況，我們確實相信，作為一家公司，在我們的行業中，在切削刀具和捲筒組件業務中，基於我們在美國強大的整體影響力，我們比其他公司處於更有利的地位。

And also, we have a strong footprint in Europe and APAC. So we believe that we'll be able to utilize that to make the moves we need to for mitigation actions, but we'll also be able to utilize our US footprint to make sure that we are taking growth opportunities and winning some markets, especially when it comes to powder sales and rods and some cutting tool opportunities.

此外，我們在歐洲和亞太地區也擁有強大的影響力。因此，我們相信，我們將能夠利用這一點來採取緩解行動，但我們也將能夠利用我們在美國的業務，確保我們抓住成長機會並贏得一些市場，特別是在粉末銷售和棒材以及一些切削刀具機會方面。

Terrific. Congratulations. Thank you.

了不起。恭喜。謝謝。

Steve Barger, KeyBanc Capital Markets.

KeyBanc 資本市場公司的 Steve Barger。

Hi, good morning. This is Jacob Moore on for Steve. Thanks for taking our questions. First one for me, kind of just staying on tariffs, I'm curious if you're seeing any pull-forward or wait-and-see type demand pauses. It feels like component manufacturers have been more victims of pull-forward, while larger, more complex goods are more wait-and-see. Just curious what your experience has been so far, and maybe that's an opportunity for you to expand on specific mitigation efforts you'd like to call out as well.

嗨，早安。雅各布·摩爾 (Jacob Moore) 代替史蒂夫發言。感謝您回答我們的問題。對我來說，首先，只是停留在關稅上，我很好奇你是否看到任何提前或觀望類型的需求暫停。感覺零件製造商更多是提前下調的受害者，而更大、更複雜的產品則更多地處於觀望狀態。只是好奇您迄今為止的經歷，也許這也是您擴展您想要呼籲的具體緩解措施的機會。

Yes, first of all, in terms of pull-forward, we have really not seen much, just in the $2 million-type of range. So for all realistic purpose, nothing much. And we don't expect that as such even in the coming weeks and months here. I believe that in our customer base, there has been definitely discussions about some production moves.

是的，首先，就提前量而言，我們確實沒有看到太多，僅在 200 萬美元左右的範圍內。因此，就所有現實目的而言，沒什麼。我們甚至不認為未來幾週和幾個月會出現這種情況。我相信在我們的客戶群中，肯定已經討論過一些有關生產舉措的問題。

As in the public domain, you have seen some of the automotive transportation OEMs, they have talked about some production moves, but some of those things will take time. In the meantime, we're staying very close to our customers and supporting them as they need to manage through this situation. We look forward to overall utilizing this opportunity to definitely gain some new business.

正如在公共領域一樣，您已經看到一些汽車運輸原始設備製造商，他們已經談論了一些生產舉措，但其中一些事情需要時間。同時，我們與客戶保持密切聯繫，並為他們提供支持，幫助他們度過難關。我們期待總體上利用這個機會來獲得一些新業務。

Great. That's helpful. And it kind of leads into my second question here, which is, do you think that any of this rapidly changing trade situation is an opportunity to look at M&A or portfolio optimization? I'm thinking about if there's lines of products you could consolidate or divest or assets that are getting closer to your M&A criteria. Just how are you thinking about those types of actions in the absence of a robust demand environment?

偉大的。這很有幫助。這引出了我的第二個問題，您是否認為這種快速變化的貿易狀況是進行併購或投資組合優化的機會？我正在考慮是否有可以合併或剝離的產品線或更接近您的併購標準的資產。在缺乏強勁需求環境的情況下，您如何考慮採取這些類型的行動？

Yes, we have definitely been working on our strategic priorities and to see how those things are aligned with our inorganic portfolio actions. Now with the tariff, definitely it did bring a new front on this discussion because we bring some things to the table. So of course there are discussions, and we will share more information when we get to a certain point on that. But yes, there will be definitely some implications on that.

是的，我們一直在致力於我們的策略重點，並觀察這些重點如何與我們的無機投資組合行動保持一致。現在有了關稅，這確實為這次討論帶來了新的前沿，因為我們提出了一些問題。所以當然會有討論，當我們討論到一定程度時，我們會分享更多資訊。但確實，這肯定會產生一些影響。

Okay, thank you very much.

好的，非常感謝。

Julian Mitchell, Barclays.

巴克萊銀行的朱利安·米切爾。

Hi, good morning. I just wanted to just focus on the guide changes first off. So I suppose the EPS guide increase, it's sort of a composition largely of the production credit, and then you've also $0.10 in the operating line. And then it seems like sort of $0.05 each coming from tax and FX versus the prior guide.

嗨，早安。我只是想先關注指南的變化。因此，我認為 EPS 指南會增加，這主要是生產信貸的組成部分，然後您的營業線上也會有 0.10 美元。然後，與先前的指南相比，稅收和外匯似乎各增加了 0.05 美元。

Just wondered if there was anything else kind of moving around within that guide and put a finer point on the net tariff headwind that's dialed in for this year as a whole in EPS. And sort of tied to that, trying to understand organic sales, doesn't seem like there's many surprises, but just wanted to confirm if in recent weeks you've seen anything moving around versus normal seasonality.

我只是想知道指南中是否還有其他內容發生變化，並對今年全年每股收益中撥入的淨關稅逆風進行了更詳細的說明。與此相關，試圖了解有機銷售額，似乎並沒有太多驚喜，但我只是想確認最近幾週您是否看到與正常季節性相比有任何變化。

Yes, just in terms of the outlook, I would say that the thumbnail version there, Julian, in terms of the approach we took on the outlook is we obviously outperformed the expectations here in the third quarter. That got rolled into the full year. We do have some benefits from the surcharge, but we've got costs associated with the tariff.

是的，僅就前景而言，我想說，朱利安，就我們對前景採取的方法而言，我們在第三季的表現顯然超出了預期。這已計入全年。我們確實從附加費中獲得了一些好處，但我們也承擔了與關稅相關的成本。

That's the net exposure we've talked about. That's been rolled in FX as we move through the quarter here. We're sitting at $1.13 and a [EUR0.5] versus we're closer to $1.08, so we've got some benefit on the weaker dollar. And then I would say, lastly, just based on where we think sales and the business will perform here, just tighten up the range and narrow it down given that we're in the fourth quarter of the year.

這就是我們談論的淨曝光。隨著我們進入本季度，這已在外匯市場中得到體現。目前我們的匯率是 1.13 美元兌 [0.5 歐元]，而我們更接近 1.08 美元，因此美元走弱為我們帶來了一些好處。最後我想說，僅基於我們認為的銷售和業務表現，鑑於我們正處於今年第四季度，只需縮小範圍並縮小範圍。

When I think about where we're at here from a sales performance in the month of April. And again, this is kind of how the outlook is built as well, pretty normal progression, right? And so, we've not seen from a demand perspective at this point in time anything that's out of the ordinary. Obviously, as we think about the March and April timeframe from year to year, you've got an Easter holiday effect in there, predominantly in Europe. That can be a little wonky, but again, the business seems to be performing. And demand levels seem to be pretty normal.

當我從四月的銷售業績來思考我們現在的狀況。再說一次，這也是觀點的建立方式，相當正常的進展，對吧？因此，從需求角度來看，目前我們還沒有看到任何異常情況。顯然，當我們考慮每年的三月和四月時間範圍時，你會發現其中有復活節假期的影響，主要是在歐洲。這可能有點奇怪，但再次強調，業務似乎表現良好。需求水準似乎相當正常。

That's helpful, thank you. And then just when we're thinking about the sales recovery, whenever that comes, I assume it's some time, let's say in fiscal '26. Just wondered, really for Sanjay, I suppose, given you've almost been in the job for 12 months now as CEO, what kind of operating leverage are you kind of aiming for in that recovery? We can see the historic record and the restructuring efforts more recently, for example, since January that have been announced. But rolling everything together, what's the sort of operating leverage kind of entitlement Kennametal should have when your sales start to grow again?

這很有幫助，謝謝。當我們考慮銷售復甦時，無論何時到來，我都認為需要一段時間，比如說在 26 財年。我只是想知道，對於桑傑來說，考慮到您擔任執行長已經快 12 個月了，您在復甦過程中想要獲得什麼樣的經營槓桿？我們可以看到歷史記錄和最近的重組努力，例如自一月份以來宣布的重組努力。但綜合考慮所有因素，當銷售額再次開始成長時，肯納金屬公司應該享有什麼樣的營運槓桿權利？

Yes, Julian, we'll start with a simple answer of mid-40s, okay? That, for sure, we expect. As we have been working on our cost structure, and we'll share more details on overall portfolio analysis and cost structure footprint and those actions, we do believe that we are continuing to improve our fixed cost. But at this point, you can definitely go with the mid-40s in terms of leverage.

是的，朱利安，我們就從 40 多歲這個簡單的答案開始，好嗎？我們當然期待這一點。由於我們一直在研究我們的成本結構，我們將分享有關整體投資組合分析和成本結構足跡以及這些行動的更多細節，我們確實相信我們正在繼續改善我們的固定成本。但就這一點而言，就槓桿率而言，你絕對可以選擇 40 年代中期的水平。

That's great. Thank you.

那太棒了。謝謝。

Thanks, Julian.

謝謝，朱利安。

Michael Feniger, Bank of America.

美國銀行的麥可費尼格。

Hey, guys, thanks for taking my questions. Just on inventories, I think your inventories, if I look at the quarter, actually increased sequentially. Revenue was a little flat. I'm just kind of curious how you feel with your inventory position. Does the quarter have a benefit from that absorption? Are you carrying a little bit more inventory? Is that strategic going into this type of environment now as we enter the back half of this year? That's my first question.

嘿，夥計們，謝謝你們回答我的問題。僅就庫存而言，我認為如果從季度來看，你們的庫存實際上是環比增加的。收入略有持平。我只是有點好奇您對庫存狀況有何看法。本季是否因這種吸收而受益？您的庫存還有多一點嗎？進入今年下半年，進入這種環境是否具有戰略意義？這是我的第一個問題。

Yes, a little bit of absorption there. When you look at finished goods inventory, it's up quite modestly sequentially from Q2 at December end. The bigger uptick will be in WIP and powder inventory, and so that's where you've seen it.

是的，有一點吸收。當您查看成品庫存時，您會發現它與去年 12 月底第二季相比較上季略有成長。更大的增長將在 WIP 和粉末庫存中，所以這就是你所看到的。

I would say a couple things about it. Number one, just given the change in demand that we've seen here and projected over the last couple of months, supply chain is relatively long. It does take a little bit of time to adjust the supply chain. I would also say at the moment, given that a lot of that is WIP and raw material related, with the elevation of the tungsten prices, that's not necessarily a bad thing to have more inventory acquired at the lower cost either.

我想就此說幾件事。首先，鑑於我們在過去幾個月中看到的需求變化和預測，供應鏈相對較長。調整供應鏈確實需要一點時間。目前我還想說，考慮到其中許多與在製品和原材料有關，隨著鎢價的上漲，以較低的成本獲得更多庫存也不一定是壞事。

Fair enough. And if I just ask it, did you guys provide a breakdown of your COGS geographically from an area like China? I'm just trying to get a sense of, is the impact mostly that China tariff? Is it that 10% for the rest of the world, maybe Europe to US? And I guess with what you guys are factoring in, is it based on those rates from April 4, Liberation Day? If we wake up in a few weeks and we see a deal struck, is that upside to that $80 million? Just any help there? would be helpful for us.

很公平。如果我只是想問一下，你們是否提供了中國等地區的地理銷售成本明細？我只是想知道，影響主要在於中國關稅嗎？對於世界其他地區（例如歐洲和美國）來說，這個數字是 10% 嗎？我想，你們考慮的因素是否基於 4 月 4 日解放日的利率？如果我們在幾週後醒來並看到達成協議，那麼這 8000 萬美元還有上漲空間嗎？有什麼幫助嗎？對我們有幫助。

Yes, sure, Michael. Yes, we are using all the tariff rates which were on effect on April 30. So as negotiations happen and things like that, that $80 million itself will come down. But what we're also telling you, regardless of whether $80 million becomes $60 million or $50 million, we have action plans in place to fully mitigate the direct impact of tariff cost. And we are also in parallel definitely looking at opportunities for growth, capitalizing on our footprint and supply chain network. To your comment, the risk will come down as the negotiations happen.

是的，當然，邁克爾。是的，我們正在使用 4 月 30 日生效的所有關稅稅率。因此，隨著談判等的進行，這 8,000 萬美元本身也會下降。但我們也要告訴您，無論 8000 萬美元變成 6000 萬美元還是 5000 萬美元，我們都已製定行動計劃，以全面減輕關稅成本的直接影響。同時，我們也在尋找成長機會，利用我們的足跡和供應鏈網絡。對於您的評論，隨著談判的進行，風險將會降低。

Fair enough, Sanjay. If I could just sneak one more in just to follow on with Julian's comment, I hear the point on 2026 with the incrementals. Just when we think of where you're going to end up in FQ4, when we think of that normal seasonality to start the year for FQ1? Normally, seasonally, we see a seasonality standpoint from FQ4, FQ1 on the top line or bottom line that we should kind of be thinking about as we kind of turn the page.

很公平，桑傑。如果我可以再偷偷地跟進朱利安的評論，我聽到了 2026 年增量的觀點。當我們想到 FQ4 的最終結果時，當我們想到 FQ1 年初的正常季節性時？通常，從季節性角度來看，我們會從 FQ4、FQ1 的頂線或底線看到季節性的觀點，在翻頁時我們應該考慮這一點。

Yes, no -- obviously, yes, the normal seasonality going into Q1, right, and we'll give an update on end markets and where we think that will precisely be, obviously, in about 90 days. I would say from a cost structure perspective, just a couple things to be mindful out there as you guys put together your expectations for '26, we have had some benefits flow through this year in terms of the P&L that are non-repetitive in nature.

是的，不是——顯然，是的，進入第一季的正常季節性，對的，我們將在大約 90 天內更新終端市場的情況，以及我們認為的具體情況。我想說，從成本結構的角度來看，當你們匯總對 26 年的期望時，只有幾件事需要注意，就損益表而言，我們今年獲得了一些非重複性的收益。

That's going to be -- we've got about $6 million of proceeds from tornadoes -- insurance proceeds on a tornado that was a year ago in May, June, in excess of cost. So obviously, that's not going to repeat. That's within the Infrastructure segment. We've talked already about on this call the tax credit, although that will continue forward at this point in time based on tax legislation indefinitely until Congress changes the tax law. As we talk about the '25 to '26 progression, there's about $8 million of benefit in '25 that's not going to repeat in '26 because that's the catch-up amount.

這將是——我們從龍捲風中獲得了大約 600 萬美元的收益——一年前五月、六月發生的龍捲風的保險收益超出了成本。顯然，這種情況不會重演。這屬於基礎設施領域。我們已經在這次電話會議上討論了稅收抵免問題，但根據目前的稅收立法，稅收抵免將無限期地持續下去，直到國會修改稅法。當我們談論 25 年至 26 年的進展時，25 年大約有 800 萬美元的福利不會在 26 年重複，因為這是補繳金額。

And then the last thing I would just reflect upon would be in terms of restructuring programs, what will end -- the run rate will end this year, and what we already have in the pipeline, to pick up about another $8 million of benefit in the first half of fiscal '26 as that annualizes out throughout the year. So from a cost structure perspective, I think those are the three big things that are worth thinking about.

然後我要思考的最後一件事是重組計劃，什麼將會結束——運行率將在今年結束，以及我們已經在籌備中的計劃，以便在 26 財年上半年再獲得約 800 萬美元的收益，因為這筆收益將在全年實現年化。因此，從成本結構的角度來看，我認為這是三件值得思考的大事。

Thank you, Patrick.

謝謝你，派崔克。

Tami Zakaria, JP Morgan.

摩根大通的塔米·扎卡里亞。

Hey, good morning. Thank you so much. I have two follow-up questions. So my first question, just wanted a bit of clarity on the pricing outlook. I think you kept it unchanged at 2% for the year. And it seems like you're already taking some pricing action for tariffs. So is 2% pricing still the right number to think about for the final quarter of the year?

嘿，早安。太感謝了。我有兩個後續問題。所以我的第一個問題只是想稍微澄清一下定價前景。我認為今年的利率將維持在 2% 不變。看起來你們已經對關稅採取了一些定價行動。那麼，2% 的定價是否仍然是今年最後一季值得考慮的正確數字？

Tami, yes. I think, excluding tariff impact, approximately 2% is what we have said. So yes, that will be the right number.

塔米，是的。我認為，排除關稅影響，大約是2%是我們所說的。是的，這是正確的數字。

So it could be higher if the current price increases slow through?

那麼，如果當前價格上漲放緩，價格可能會更高嗎？

Yes, if you're adding the tariff on surcharge, yes, but I'm excluding the tariff surcharge. And I'm saying that is like on top of tariff surcharge is simply to offset the tariff direct impact.

是的，如果您要添加關稅附加費，是的，但我不包括關稅附加費。我說的就像關稅附加費只是為了抵銷關稅的直接影響。

Got it, okay. And so my follow-up question is, are you able to share what price and price cost was in the third quarter?

知道了，好的。所以我的後續問題是，您能否分享第三季的價格和價格成本是多少？

No, the only thing I would say there, Tammy, is as we think about the business performance on a year-over-year basis, right, and this is where -- this is given the timing elements that can move through the P&L. A year ago, third quarter, in Infrastructure, they would have been on the wrong side of the price-raw cycle. And so you would have seen operating income margin and Infrastructure of about, I think, 3.8% last year, 3Q. And as we got to this year, price-raw from an Infrastructure perspective is in balance in Q3, and so neither a headwind or a tailwind, quite frankly, to note there.

不，塔米，我唯一想說的是，當我們考慮同比的業務表現時，對的，這就是 - 這是考慮到可以通過損益表移動的時間要素。一年前，也就是第三季度，在基礎設施方面，他們可能處於價格原物料週期的錯誤一邊。因此，您會看到，去年第三季的營業收入利潤率和基礎設施約為 3.8%。而到了今年，從基礎設施的角度來看，原物料價格在第三季處於平衡狀態，因此坦白說，既沒有逆風也沒有順風。

Got it, okay. Thank you.

知道了，好的。謝謝。

Joe Ritchie, Goldman Sachs.

高盛的喬·里奇。

Thank you. Good morning, everybody.

謝謝。大家早安。

Hi, Joe.

你好，喬。

So just my first question, and this is just a higher-level question for Sanjay. Some of these tariff actions that you're taking in place on slide 5, is it fair to presume, regardless of what happens with the tariff situation, because I guess there's an expectation that at some point this number is going down, that these actions are kind of more structural in nature outside of maybe the surcharges? There will be structural movements to your supply chain that will continue?

這是我的第一個問題，對 Sanjay 來說這是一個更高層次的問題。您在投影片 5 中提到的一些關稅措施，是否可以合理地推測，無論關稅情況如何，因為我認為人們預期在某個時候這個數字會下降，這些措施在本質上可能更具結構性，除了附加費之外？您的供應鏈中是否仍會持續出現結構性變動？

Yes, Joe, for the most part, that will be the correct assumption, I think, if things went back to the way it was before. In that case, there could be some regrouping of production in terms of getting the economy up to scale, because there are certain types of specialty products that we make today in one part of the world or the other, and we ship around. But we are very capable of producing our general product, the standard products in all three regions.

是的，喬，如果事情恢復到以前的樣子，我認為，在大多數情況下，這將是正確的假設。在這種情況下，為了擴大經濟規模，可能會對生產進行一些重組，因為今天我們在世界的某個地方生產某些類型的特殊產品，然後運往各地。但我們完全有能力生產我們的通用產品，即三個地區的標準產品。

So those kind of moves we have already enacted very quickly in April, but there are some specialty products. We will revisit that depending on where the tariff levels go back. But assuming that there is some sort of tariff in place, I think these will be more in like a little bit more permanent shape.

我們在四月就已經迅速採取了這些舉措，但也有一些特殊產品。我們將根據關稅水準的回落情況重新審視這個問題。但假設存在某種關稅，我認為這些關稅將更像是一種更永久的形式。

And we'll definitely -- in parallel, we're working on -- we're always looking for improvement as we are even doing this. And as part of continuous improvement mindset, we're not just saying that let's just do this to manage tariff. When we're moving any of these things around, we are looking for cycle time improvement, uptime improvement, and overall yield improvement. So our idea here is that we come out stronger from this situation.

我們肯定會 — — 同時，我們正在努力 — — 我們在做這件事的時候也一直在尋求改進。作為持續改善思維的一部分，我們不只是說讓我們這樣做來管理關稅。當我們移動這些東西時，我們都在尋求週期時間的改善、正常運作時間的改善和整體產量的提高。所以我們的想法是，我們要擺脫這種困境，變得更強大。

Got it. That's helpful. And look, not that the current environment is supporting this, but if for some reason we were to see some like real acceleration in the demand backdrop, I'm curious, is there risk to being able to supply the market if we do see an inflection point in your business? Typically, when you see these types of moves, sometimes you run into this kind of like taking a python problem. And I'm just curious how you're managing and how much capacity you have if things were to inflect from a revenue perspective.

知道了。這很有幫助。而且，當前的環境並不支持這一點，但如果出於某種原因，我們看到需求背景出現真正的加速，我很好奇，如果我們確實看到您的業務出現拐點，那麼供應市場是否存在風險？通常，當您看到這些類型的動作時，有時您會遇到類似解決 Python 問題的情況。我只是好奇，如果從收入角度來看情況發生變化，您如何管理以及您擁有多少產能。

Yes, on a high level, we do not anticipate any risk. I think we have -- definitely, if you go back a few years ago, we as a company and the industry, we have seen 30 months of slowdown in industrial production. So if you go back to even five years ago, we have more capacity to support Aerospace and Defense demands, same way for Transportation, General Engineering, so on and so forth, Energy.

是的，從高層來看，我們預計不會有任何風險。我認為我們已經——如果你回顧幾年前，我們作為一家公司和整個行業，已經看到工業生產連續 30 個月放緩。因此，如果回顧五年前，我們有更多的能力來支援航空航太和國防需求，交通運輸、通用工程、能源等產業也是如此。

So we can definitely handle -- we'll be happy to handle some recovery in the market. And in parallel, as Pat also mentioned, we have definitely worked on our cost structure. We'll be exiting this year. In January, we announced the $15 million. We're well on track to complete that. So I do believe that we will be able to handle in terms of demand, but also in terms of getting -- coming out with this better cost structure too.

所以我們絕對可以應付——我們很樂意應對市場的一些復甦。同時，正如帕特所提到的，我們也確實在努力改進我們的成本結構。我們今年就會退出。一月份，我們宣布撥款 1500 萬美元。我們正在順利完成這個目標。因此，我確實相信我們不僅能夠滿足需求，還能實現更好的成本結構。

Got it. Great. One last one. I know we'll get the guidance next quarter. But just maybe you can comment, any changes to how you will guide, like in terms of the information you'll provide, versus how you guided last year? Either any incrementally new or less information when you do give the guidance?

知道了。偉大的。最後一個。我知道我們將在下個季度得到指導。但是也許您可以評論一下，與去年的指導相比，您的指導方式有什麼變化嗎，例如您提供的資訊方面？當您給予指導時，是否有任何新增資訊或較少資訊？

No, I think that's a question we'll answer, Joe, in about 90 days.

不，喬，我想我們會在大約 90 天內回答這個問題。

All right. Fair enough. Thank you.

好的。很公平。謝謝。

Thank you. This concludes our question-and-answer session. I would now like to hand the call back over to Mr. Chowbey for closing remarks.

謝謝。我們的問答環節到此結束。現在我想將發言權交還給 Chowbey 先生，請他作最後發言。

Thank you, operator. And thank you, everyone, for joining the call today. As always, we appreciate your interest and support. Please don't hesitate to reach out to Mike if you have any questions. Have a great day. Thank you.

謝謝您，接線生。感謝大家今天參加電話會議。一如既往，我們感謝您的關注與支持。如果您有任何疑問，請隨時聯繫 Mike。祝你有美好的一天。謝謝。

The conference has now concluded. Thank you for your participation. You may now disconnect your lines.

會議現已結束。感謝您的參與。現在您可以斷開線路了。