Quaker Chemical Corp (KWR) 2026 Q1 法說會逐字稿

Greetings, and welcome to the Quaker Houghton first quarter 2026 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.

各位好，歡迎參加 Quaker Houghton 2026 年第一季財報電話會議。（接線員指示）提醒各位，本次會議將被錄音。

I would now like to turn the call over to John Dalhoff, Director of Investor Relations. Mr. Dalhoff, you may begin.

現在我想把電話交給投資人關係總監 John Dalhoff。Dalhoff 先生，請開始。

Thank you. Good morning, and welcome to Quaker Houghton's first quarter 2026 earnings conference call. Joining us on the call today are Joe Berquist, our President and Chief Executive Officer; Tom Coler, our Executive Vice President and Chief Financial Officer; and Robert Traub, our General Counsel. Our comments relate to the financial information released after the close of the US markets yesterday, April 30, 2026.

謝謝。各位早安，歡迎參加 Quaker Houghton 2026 年第一季財報電話會議。今天與會者包括：我們的總裁暨執行長 Joe Berquist；執行副總裁暨財務長 Tom Coler；以及總法律顧問 Robert Traub。我們的評論將以昨日（2026 年 4 月 30 日）美國市場收盤後發布的財務資訊為基礎。

Our press release and accompanying slides can be found on our Investor Relations website. Both the prepared commentary and discussion during this call may contain forward-looking statements reflecting the company's current view of future events and their potential effect on Quaker Houghton's operating and financial performance. These statements involve uncertainties and risks, which may cause actual results to differ.

我們的新聞稿與隨附投影片可於投資人關係網站查閱。本次電話會議中的事先準備講稿與討論內容可能包含前瞻性陳述，反映公司目前對未來事件及其對 Quaker Houghton 營運與財務表現之潛在影響的看法。這些陳述涉及不確定性與風險，可能導致實際結果出現差異。

The company is under no obligation to provide subsequent updates to these forward-looking statements. This presentation also contains certain non-GAAP financial measures, and the company has provided reconciliations to the most directly comparable GAAP financial measures in the appendix of the presentation materials, which are available on our website. For additional information, please refer to our filings with the SEC.

公司無義務就這些前瞻性陳述提供後續更新。本簡報亦包含若干非 GAAP 財務衡量指標；公司已在簡報資料的附錄中提供與最直接可比之 GAAP 財務衡量指標的調節表，相關資料可於我們網站取得。更多資訊請參閱我們向 SEC 提交的文件。

Now it's my pleasure to hand the call over to Joe.

現在我很高興把電話交給 Joe。

Thank you, John, and good morning, everyone. We delivered a strong first quarter with organic volumes up 3% year-over-year, resulting in our third consecutive quarter of adjusted EBITDA growth. Our performance was driven by new business wins in all regions, highlighted by double-digit organic volume growth in Asia Pacific, where we continue to gain traction across the region.

謝謝你，John，各位早安。我們第一季表現強勁，有機銷量年增 3%，帶動調整後 EBITDA 連續第三季成長。我們的表現來自各區域的新業務得標，尤其是亞太地區有機銷量達雙位數成長，我們持續在區域內取得進展。

Adjusted EBITDA increased 5% compared to the prior year, building on net share gains that enabled us to outperform our end markets, which we estimate were down approximately 1% in the quarter. Gross margins improved from the fourth quarter, increasing 150 basis points sequentially and 40 basis points year-over-year. The sequential improvement in margins was bolstered by higher utilization of fixed assets and improved operational performance.

調整後 EBITDA 較去年同期增加 5%，延續淨市占提升，使我們的表現優於終端市場；我們估計終端市場本季約下滑 1%。毛利率較第四季改善，季增 150 個基點，年增 40 個基點。毛利率的季比改善主要受固定資產利用率提高與營運表現改善所支撐。

Market conditions remain soft overall, with pockets of incremental industrial gains tempered by weak automotive production. The hostilities in the straight of our moves are creating inflationary pressure on raw materials and input costs.

整體市場狀況仍偏疲弱，部分工業領域出現增量成長，但被汽車產量疲弱所抵銷。我們行動所經過海峽的敵對行動正對原物料與投入成本造成通膨壓力。

But so far, it has not had a significant direct or indirect impact on demand. Strong commercial execution from our team and contributions from our recent acquisitions helped offset the underlying sluggish markets, enabling us to deliver organic volume, revenue and EBITDA growth in the quarter despite headwinds and volatility.

但截至目前，對需求尚未造成顯著的直接或間接影響。我們團隊強勁的商業執行力以及近期併購的貢獻，協助抵銷基礎市場的遲滯，使我們即使面臨逆風與波動，仍在本季實現有機銷量、營收與 EBITDA 成長。

Turning to the first quarter results. Net sales increased 8% year-over-year, fueled by net share gains of 4% at the top of our target range, along with the contribution from recent acquisitions. This marks the 10th consecutive quarter of net share gains, while our end markets have been consistently sluggish. Organic sales volumes in Asia Pacific grew for the 11th consecutive quarter.

接著看第一季結果。淨銷售額年增 8%，主要由淨市占提升 4%（位於我們目標區間的上緣）以及近期併購的貢獻所帶動。這是連續第 10 季淨市占提升，而我們的終端市場則持續疲弱。亞太地區有機銷售量已連續第 11 季成長。

While our business in China continues to grow above end market rates, we are also achieving outsized growth in emerging markets such as India, Thailand and Vietnam. Operating margins have expanded in the region as we are benefiting from recent organic investments in localized manufacturing.

雖然我們在中國的業務仍以高於終端市場的速度成長，我們也在印度、泰國與越南等新興市場取得更為突出的成長。隨著近期在地化製造的有機投資開始受益，該區域的營業利潤率亦有所擴張。

In EMEA, organic volumes grew 2% in the first quarter as new business wins outpaced persistently tough end markets. Volumes in the Americas declined slightly year-over-year, driven by a lingering customer outage, tariff uncertainty and weather-related disruptions.

在 EMEA，第一季有機銷量成長 2%，新業務得標超越持續嚴峻的終端市場表現。美洲地區銷量較去年同期小幅下滑，主因為客戶停工影響延續、關稅不確定性以及天候相關干擾。

Despite these challenges, March had the highest volume in the Americas in the last 16 months, signaling improved momentum as we exited the quarter. EBITDA margins declined 50 basis points year-over-year, primarily because of higher SG&A expenditures related to acquisitions, foreign currency and incentive compensation. I would like to provide more color on the ongoing conflict in the Middle East and how we are managing its impact on our business.

儘管面臨這些挑戰，3 月仍創下美洲地區過去 16 個月的最高銷量，顯示我們在季末的動能有所改善。EBITDA 利潤率年減 50 個基點，主要因與併購相關的較高 SG&A 支出、外匯以及獎酬薪酬所致。我想就中東持續衝突以及我們如何管理其對業務的影響，提供更多說明。

Immediately after the conflict began, we established an executive level task force to monitor developments, assess potential impacts and coordinate our response.

衝突爆發後，我們立即成立由高階主管層級組成的專案小組，以監測事態發展、評估潛在影響並協調應對措施。

Our top priority was to ensure the safety of our more than 4,700 employees, particularly those living and working in the region. We also took swift action to confirm supply continuity to customers in the affected region. Since then, the task force has remained actively engaged, tracking conditions closely and addressing emerging pressures. From a business perspective, we have proportionately low direct sales exposure to Middle East countries near the conflict area.

我們的首要任務是確保超過 4,700 名員工的安全，特別是居住與工作於該地區的同仁。我們也迅速採取行動，確認對受影響地區客戶的供應可持續不中斷。此後，專案小組持續積極投入，密切追蹤情勢並處理新出現的壓力。就業務面而言，我們對衝突區域附近中東國家的直接銷售曝險相對較低。

Our sales to North Africa and the Middle East in 2025 were less than 2% of total company net sales. While first quarter results were largely insulated, we expect higher raw material and shipping costs in the second quarter.

我們 2025 年對北非與中東的銷售額占公司總淨銷售額不到 2%。雖然第一季結果大致未受影響，但我們預期第二季原物料與運輸成本將上升。

To address this, we implemented pricing actions across all regions with some taking effect in April. There will be a typical lag between rising costs and price realization, which we expect will create temporary gross margin pressures in the second quarter. Based on the actions we have taken and additional increases planned for this quarter, we expect to recover margins within one to two quarters.

為因應此情況，我們已在所有地區採取調價措施，其中部分已於 4 月生效。成本上升與價格實現之間通常會有時間落差，我們預期這將在第二季造成短期毛利率壓力。基於我們已採取的行動以及本季規劃的額外調漲，我們預期可在一到兩季內恢復毛利率。

Meanwhile, we are committed to ensuring products reach our customers without disruption. We have not yet seen a meaningful impact on customer demand, but a prolonged conflict could begin to influence broader economic activity, including forward demand and further cost inflation. With this backdrop, we are focused on what we can control.

同時，我們致力於確保產品能不受干擾地送達客戶。我們尚未看到對客戶需求的顯著影響，但若衝突延長，可能開始影響更廣泛的經濟活動，包括遠期需求以及進一步的成本通膨。在此背景下，我們將專注於可控事項。

Today, we are announcing the launch of a new transformation program that will reduce cost and complexity across the organization, optimize our manufacturing network, strengthen sales and technical capabilities and simplify global processes. We will pace investments over the coming months to unlock productivity in a disciplined manner.

今天，我們宣布啟動一項新的轉型計畫，將在全組織降低成本與複雜度、優化製造網絡、強化銷售與技術能力，並簡化全球流程。我們將在未來數月以審慎有紀律的方式安排投資節奏，以釋放生產力。

The first phase is underway through a comprehensive business process review focused on finding cost opportunities and improving master data management. The program will fundamentally change the way we work, and we are looking to modernize the employee and customer experience. In the first quarter, we took steps to streamline our executive leadership structure to sharpen customer focus and accelerate decision-making.

第一階段已展開，透過全面性的業務流程檢視，聚焦於尋找成本機會並改善主資料管理。該計畫將從根本上改變我們的工作方式，我們也希望現代化員工與客戶體驗。第一季我們已採取措施精簡高階主管領導架構，以提升客戶聚焦並加速決策。

This program is central to achieving adjusted EBITDA margins at or above our target of 18%. We expect to exit this year with approximately $10 million in new run rate savings. Over the next three years, we see a clear path to delivering at least $20 million to $30 million of sustainable structural cost improvement with much of that target already identified.

此計畫是達成調整後 EBITDA 利潤率達到或高於我們 18% 目標的核心。我們預期今年年底可新增約 1,000 萬美元的年度化節省（run rate）效益。未來三年，我們清楚看到可實現至少 2,000 萬至 3,000 萬美元可持續的結構性成本改善之路徑，其中多數目標已被辨識。

We have a clear line of sight to a robust set of initiatives, giving us confidence in our long-term transformation path. This new program complements actions that are already underway. The closure of our manufacturing facility in Dortmund, Germany remains on track, and we are beginning to realize the associated financial benefits.

我們對一系列強健的計畫舉措有清晰的可視性，讓我們對長期轉型路徑充滿信心。這項新計畫也與目前已在進行的行動相互補強。我們關閉德國多特蒙德製造工廠的計畫仍按進度推進，且我們已開始實現相關的財務效益。

We continue to expect approximately $2 million in cost savings from the closure in 2026 and $5 million in annual run rate savings beginning in 2027. We also recently announced the planned closure of our manufacturing facility in Songjiang, China, which will coincide with the start-up of our new facility in Zhongjuang later this summer.

我們仍預期該關閉案在 2026 年可帶來約 200 萬美元的成本節省，並自 2027 年起每年帶來 500 萬美元的年度化節省。我們近期也宣布計畫關閉中國松江的製造工廠，該時程將與今年夏末我們在中莊的新工廠啟用相配合。

Production from Songjiang will transition to the new site as it comes online, enabling more efficient operations and enhanced capabilities. This modern facility will strengthen our ability to serve customers across Asia Pacific and manufacture recent portfolio additions more competitively at the local level. Turning to the outlook.

隨著新廠逐步投產，松江的產能將轉移至新址，從而提升營運效率並強化能力。這座現代化設施將強化我們服務亞太客戶的能力，並使我們能在當地以更具競爭力的成本生產近期新增的產品組合。接著談展望。

Our view on macro trends is consistent with prior expectations. End markets declined modestly in the first quarter as expected. And while we still continue to predict flat end market conditions for the full year with normal seasonal improvement and a slightly better demand environment in the second half, we expect sequential volume and revenue growth in Q2, driven by seasonal improvement and wrap effect of new and recent business wins.

我們對總體趨勢的看法與先前預期一致。第一季終端市場如預期小幅下滑。雖然我們仍預測全年終端市場大致持平，並在正常季節性改善下於下半年呈現略佳的需求環境，但我們預期第二季銷量與營收將呈現季比成長，主要由季節性改善以及新近業務得標的延續效應所帶動。

Visibility through the first part of the quarter indicates steady demand. At the same time, we anticipate temporary gross margin pressure related to higher input costs stemming from the Middle East conflict, which is expected to push gross margins below our target range in the second quarter. The situation remains dynamic due to the prevailing market uncertainty. We expect these gross margin headwinds to be temporary, lasting no more than one to two quarters.

從本季前段的能見度來看，需求維持穩定。同時，我們預期因中東衝突導致投入成本上升，將帶來短期毛利率壓力，並預計在第二季使毛利率低於我們的目標區間。由於市場不確定性仍在，情勢依然動態變化。我們預期這些毛利率逆風屬暫時性，持續時間不超過一到兩季。

Our current estimate is that second quarter gross margins will be 200 basis points to 300 basis points below quarter one on a sequential basis. Through pricing actions we are taking, we expect to fully recover gross margins within our target range of 36% to 37% as we exit the year.

我們目前估計，第二季毛利率在季比基礎上將較第一季低 200 至 300 個基點。透過我們正在採取的調價措施，我們預期在年底前可使毛利率完全回到 36% 至 37% 的目標區間。

With the rapid raw material cost escalation in recent weeks above what we experienced at the end of the first quarter and the ongoing uncertainty of the situation, we are in the process of implementing further price increases, which we expect will be in place before the end of the second quarter.

鑑於近幾週原物料成本快速攀升，幅度高於第一季末的情況，加上局勢持續不確定，我們正著手實施進一步的價格調漲，並預期將在第二季結束前完成到位。

We are recovering the cost impact from inflation in a responsible way and collaborating with our customers to successfully navigate the complexity of the current situation. As mentioned previously, the company is also taking action to improve our cost structure.

我們正以負責任的方式回收通膨帶來的成本影響，並與客戶合作，成功應對當前情勢的複雜性。如先前所述，公司也正在採取行動以改善我們的成本結構。

Our long-term earnings profile continues to be resilient. Our local-for-local operating model and deep customer relationships differentiate us and enable new business wins. As a result, even amid heightened uncertainty, we continue to expect revenue and adjusted EBITDA growth in 2026, assuming no significant further deterioration in our end markets because of the Middle East conflict.

我們的長期獲利概況仍具韌性。我們的在地供應在地（local-for-local）營運模式以及深厚的客戶關係，使我們具備差異化優勢並促成新的業務勝出。因此，即使在不確定性升高的情況下，假設中東衝突未導致我們終端市場進一步顯著惡化，我們仍預期 2026 年營收與調整後 EBITDA 將成長。

In closing, I am incredibly proud of our team and their consistent execution in a challenging environment. We are making substantial progress across key priorities, including pursuit of new business, cost structure optimization, while also diligently executing our strategy to create long-term value for our customers and shareholders.

最後，我對我們的團隊以及他們在充滿挑戰的環境中持續穩健的執行力感到無比自豪。我們在多項關鍵優先事項上取得實質進展，包括爭取新業務、最佳化成本結構，同時也嚴謹落實我們的策略，為客戶與股東創造長期價值。

With that, I will turn the call over to Tom to walk through the financials in more detail.

接下來，我把電話交給 Tom，請他更詳細地說明財務狀況。

Thank you, Joe, and good morning, everyone. First quarter net sales were $480 million, an 8% increase from the prior year. Organic volumes increased 3%, driven by global net share gains of 4% across all regions, with Asia Pacific being the largest contributor. Acquisitions contributed an additional 4% to net sales, primarily related to Dipsol, which will become part of our organic base beginning in Q2.

謝謝你，Joe，各位早安。第一季淨銷售額為 4.80 億美元，較去年同期成長 8%。有機銷量成長 3%，主要受所有地區合計 4% 的全球淨市占提升所帶動，其中亞太地區貢獻最大。併購對淨銷售額另貢獻 4%，主要與 Dipsol 相關；自第二季起，Dipsol 將納入我們的有機基礎。

We also had a 4% benefit to net sales from favorable foreign currency translation, primarily due to the euro strengthening against the US dollar. Partially offsetting these items was unfavorable selling price and product mix, which was 3% lower than the prior year associated with lower index pricing, regional and geographic mix.

我們的淨銷售額亦受惠於有利的外幣換算，帶來 4% 的正面影響，主要因歐元兌美元走強。部分抵銷上述因素的是不利的售價與產品組合，較去年同期下降 3%，與較低的指數定價、區域與地理組合有關。

As expected, gross margins improved on both a year-over-year basis as well as sequentially to 36.8%, near the high end of our target range. This was driven by product margin improvement and more favorable manufacturing absorption.

如預期，毛利率不僅較去年同期改善，也較前一季提升至 36.8%，接近我們目標區間的高端。此改善主要由產品毛利提升以及更有利的製造吸收所帶動。

On a non-GAAP basis, SG&A increased approximately $16 million or 14% in the first quarter compared to the prior year. This increase was primarily due to acquisitions and the impact of foreign currency. Excluding these items, organic SG&A was approximately 6% higher in the first quarter, mainly due to higher incentive compensation and accelerated depreciation related to our corporate headquarters and lab consolidation in the Philadelphia area.

以非 GAAP 基礎計算，第一季 SG&A 較去年同期增加約 1,600 萬美元或 14%。此增幅主要來自併購以及外幣影響。排除上述因素後，第一季有機 SG&A 約增加 6%，主要因較高的獎酬性薪酬，以及與我們在費城地區的企業總部與實驗室整併相關的加速折舊。

We delivered $73 million of adjusted EBITDA in the first quarter, while adjusted EBITDA margin of 15.1% declined year-over-year due to higher SG&A costs. Switching now to our segment results. Our Asia Pacific segment continues to be a growth engine with organic net sales increasing in 10 of our 11 last quarters and new business wins far exceeding the high end of our total company target range.

第一季我們達成 7,300 萬美元的調整後 EBITDA；但調整後 EBITDA 利潤率為 15.1%，因 SG&A 成本較高而較去年同期下降。接著看各事業部門表現。我們的亞太事業部持續是成長引擎，在過去 11 個季度中有 10 個季度有機淨銷售額成長，且新業務勝出遠高於公司整體目標區間的高端。

Asia Pacific sales in the first quarter increased 25% year-over-year as the impact of our acquisition of Dipsol complemented organic volume growth of 10% and a favorable foreign currency impact of 3%. These drivers were partially offset by unfavorable price and mix, which declined 2% in the quarter. Segment earnings in Asia Pacific increased approximately $8 million or 32% in the first quarter compared to the prior year.

亞太第一季銷售額年增 25%，其中我們併購 Dipsol 的影響與 10% 的有機銷量成長，以及 3% 的有利外幣影響相互加乘。上述因素部分被不利的價格與組合所抵銷，該項在本季下降 2%。亞太事業部第一季部門獲利較去年同期增加約 800 萬美元或 32%。

This was driven by higher top line growth as well as improved product margins and more favorable manufacturing absorption. First quarter net sales in EMEA increased 10% year-over-year, partially due to favorable foreign currency impacts. Higher net sales from organic volume growth and the impact of acquisitions were offset by lower selling price and product mix. Segment earnings in EMEA increased approximately $2 million or 9% in the first quarter compared to the prior year.

此成長主要由較高的營收成長所帶動，並受惠於產品毛利改善及更有利的製造吸收。EMEA 第一季淨銷售額年增 10%，部分來自有利的外幣影響。有機銷量成長與併購帶來的淨銷售額增加，被較低的售價與產品組合所抵銷。EMEA 事業部第一季部門獲利較去年同期增加約 200 萬美元或 9%。

First quarter net sales in the Americas were in line with the prior year as favorable impacts from our acquisitions and foreign currency were offset by lower organic sales volumes and selling price and product mix. Lower volumes were attributable to a continued customer outage, regional tariff uncertainty and weather impacts early in the quarter, while lower selling prices were primarily the result of our index contracts as raw material costs declined in the quarter compared to the prior year.

美洲第一季淨銷售額與去年同期大致持平，因併購與外幣帶來的有利影響，被較低的有機銷售量以及較低的售價與產品組合所抵銷。銷量下降主要歸因於客戶持續停工、區域關稅不確定性，以及季度初的天候影響；售價下降則主要是因我們的指數合約，在本季原物料成本較去年同期下降所致。

Segment earnings in the Americas decreased approximately $5 million or 8% in the first quarter compared to the prior year. This was driven by higher SG&A related to selling expense and incentive compensation as well as unfavorable product mix that negatively impacted margins.

美洲事業部第一季部門獲利較去年同期下降約 500 萬美元或 8%。主要原因為與銷售費用及獎酬性薪酬相關的 SG&A 較高，以及不利的產品組合對利潤率造成負面影響。

Turning to nonoperating costs. Our interest expense was $10 million in the first quarter, which was consistent with the prior year and the past few quarters. Our cost of debt remained approximately 5% in the quarter. Our effective tax rate, excluding noncore and nonrecurring items, was approximately 28% in the first quarter, which is slightly lower than the prior year and in line with our expectations for the full year effective tax rate in the range of 28% to 29%.

接著談非營運成本。第一季利息費用為 1,000 萬美元，與去年同期及過去幾季一致。本季我們的債務成本約維持在 5%。排除非核心與非經常性項目後，第一季有效稅率約為 28%，略低於去年同期，並符合我們對全年有效稅率 28% 至 29% 區間的預期。

And in the first quarter, our GAAP diluted earnings per share were $1.13 and our non-GAAP diluted earnings per share were $1.63, a 3% increase over the prior year due to improved operating performance. Cash generated from operations was $4 million in the first quarter, increasing from a use of cash of $3 million in the prior year.

第一季 GAAP 稀釋每股盈餘為 1.13 美元，非 GAAP 稀釋每股盈餘為 1.63 美元，因營運表現改善而較去年同期成長 3%。第一季營運活動產生的現金為 400 萬美元，較去年同期現金流出 300 萬美元有所改善。

The first quarter is typically our lowest from a cash generation perspective due to incentive compensation payments, working capital investments and the seasonality of our business. The improvement over the prior year was primarily the result of better operating performance and lower cash restructuring costs, which totaled $4 million in the first quarter.

從現金創造角度來看，第一季通常是我們全年最低的季度，原因包括獎酬性薪酬支付、營運資金投入以及業務季節性。相較去年同期的改善，主要來自更佳的營運表現以及較低的現金重整成本；第一季現金重整成本合計為 400 萬美元。

Capital expenditures in the first quarter were approximately $11 million, primarily related to the construction of our new facility in China. We anticipate capital expenditures to increase in the remaining quarters as we complete construction in China and finalize the build-out of our new corporate headquarters in Pennsylvania.

第一季資本支出約為 1,100 萬美元，主要與我們在中國的新廠建設相關。隨著我們完成中國的建設並完成賓夕法尼亞州新企業總部的建置，我們預期後續季度的資本支出將增加。

We still expect full year 2026 capital expenditures to be approximately 2.5% to 3.5% of sales. During the first quarter, we paid approximately $9 million in dividends. We remain focused on our capital allocation priorities and balancing investments for growth with returning cash to shareholders, and we'll continue to weigh opportunistic share repurchases in a prudent manner that optimizes shareholder value.

我們仍預期 2026 全年資本支出約為銷售額的 2.5% 至 3.5%。第一季我們支付約 900 萬美元股利。我們仍聚焦於資本配置優先事項，在成長投資與回饋股東之間取得平衡，並將持續以審慎方式評估機會型庫藏股回購，以最佳化股東價值。

In April, we announced that we entered into an amended credit agreement in which we extended our nearest debt maturity by almost four years from June 2027 to April 2031, while also increasing our revolving credit facility availability by approximately $300 million and improving our overall credit terms. The amended agreement also provides us with the right to increase the revolving credit facility by approximately $331 million for additional liquidity.

4 月，我們宣布已簽訂修訂後的信貸協議，將最近一期債務到期日延後近四年，從 2027 年 6 月延至 2031 年 4 月，同時將循環信用額度可用額度增加約 3 億美元，並改善整體授信條款。該修訂協議亦賦予我們將循環信用額度再增加約 3.31 億美元的權利，以取得額外流動性。

The improvement in our credit terms and increased availability under this new agreement reflects the strength of our balance sheet and are clear indicators of the underlying health of our business and the durability of our cash flows. The new agreement provides increased financial flexibility that will allow us to execute our strategy, achieve our capital allocation priorities and continue investing in growth.

本次新協議下授信條款的改善與可用額度的提升，反映我們資產負債表的強勁，並清楚顯示我們業務的基本健康狀況以及現金流的持久性。新協議提供更高的財務彈性，使我們得以執行策略、達成資本配置優先事項並持續投資成長。

We delivered strong first quarter results, continuing to gain share and driving organic volume growth despite ongoing macroeconomic and geopolitical challenges. With a strengthened balance sheet and increased financial flexibility, we are well positioned to continue executing our strategy and creating value for shareholders. With that, I will turn it back over to Joe.

我們交出強勁的第一季成果，在宏觀經濟與地緣政治挑戰持續之際，仍持續提升市占並推動有機銷量成長。隨著資產負債表更為強健、財務彈性提升，我們已具備良好條件持續執行策略並為股東創造價值。接下來，我把電話交回給 Joe。

Thank you, Tom. We are executing a clear set of priorities to strengthen the business, simplifying how we operate, enhancing our capabilities and putting the right cost structure in place to support sustainable growth. With that, we would be happy to answer your questions.

謝謝你，Tom。我們正執行一套明確的優先事項以強化業務，簡化營運方式、提升能力，並建立適切的成本結構以支持永續成長。接下來，我們很樂意回答各位的問題。

(Operator Instructions)

（接線員指示）

Mike Harrison, Seaport Research Partners.

Mike Harrison，Seaport Research Partners。

I wanted to start with just kind of the raw material picture. I think you did a good job kind of articulating the expectation of 200 basis points or 300 basis points of margin pressure next quarter. But maybe just give us some details on what you guys are seeing in terms of raw material costs.

我想先從原物料的整體情況談起。我認為你們對於下季將面臨 200 個基點或 300 個基點的利潤率壓力之預期，說明得很清楚。不過也許可以再提供一些細節，談談你們目前看到的原物料成本狀況。

I assume that the biggest pressure you're seeing is in crude-based materials, but maybe comment also on what you're seeing. I know we're just getting past an oleochemical spike, and I think some of those materials also continue to be kind of volatile. And also, if you can cover whether you're having any issues with raw material availability in any parts of the world?

我猜你們看到的最大壓力是在原油相關材料，但也請評論一下你們的觀察。我知道我們剛度過一波油脂化學品（oleochemical）的價格飆升，而且我認為其中一些材料仍然相當波動。另外，也請說明你們在全球任何地區是否遇到原物料供應可得性方面的問題？

Yes. Thanks, Mike. Good question. So talking about the general situation. If you think about our raw materials, there's really three buckets, right?

是的，謝謝你，Mike。問得很好。先談整體情況。如果你看我們的原物料，基本上可分成三大類，對吧？

It's base oils, it's additives and then it's oleochemicals. And right now, as is typical in an inflationary environment like this, everything sort of keys off of what's happening with crude oil, right?

分別是基礎油、添加劑，以及油脂化學品。而目前，如同在這種通膨環境下的典型情況，一切大致都取決於原油的走勢，對吧？

And so all 3 of those buckets are higher. In the sort of when hostilities broke out, as I mentioned just a few minutes ago, we put a task force together that day, right, that Saturday, we started looking at what impacts this is going to have on supply, first of all, and then also cost.

因此這三大類都在上漲。在敵對行動爆發時，正如我幾分鐘前提到的，我們當天就成立了專案小組，對吧？就在那個星期六，我們開始評估這將首先對供應造成哪些影響，然後也評估成本方面的影響。

And I think from a supply standpoint, to your last part of your question, we've been very fortunate to not have any issues. I think the flexibility of our supply chain, the fact that we have this local-for-local approach and really as one of the leaders in the space, I think our relationships and our ability to get product around the world is very good.

而且我認為從供應的角度來看，回到你問題的最後一部分，我們一直很幸運，沒有遇到任何問題。我認為我們供應鏈的彈性、我們採取在地供應在地（local-for-local）的做法，再加上我們確實是這個領域的領導者之一，我認為我們的關係以及把產品運送到全球各地的能力都非常好。

Overall trend in those three buckets or raw materials in general, what we had thought sort of the increase was going to be toward the end of Q1, I would say in the recent weeks, that has gone up more. So we put an increase out at the end of Q1. Some of that became effective in April, more will become effective here in May. And we've already started on another round of price increases just because the cycle is pretty inflationary right now.

整體來看，在那三大類別或原物料整體的趨勢上，我們原本以為漲幅會在第一季末才出現；但我會說，最近幾週漲得更多。因此我們在第一季末已經推出一波漲價，其中一部分在四月生效，更多會在五月這裡生效。而且我們已經開始進行另一輪漲價，因為目前這個循環的通膨壓力相當明顯。

Will that go further? I personally have my own thoughts on that. I don't believe so. But it all depends. If it does, I think as we did in the past, we have pretty good ability to go out and get pricing, but there is this lag.

這會再往上走嗎？我個人對此有一些看法。我不認為會。但一切都取決於情況。如果真的再上去，我想就像我們過去做的一樣，我們有相當不錯的能力去爭取定價，但會有這個時間落差。

And so our view of Q2 is, as I said, we think it's going to be somewhere between 200 basis points, maybe a little bit more than that. We have index agreements as well. And those index agreements tend to adjust on a quarterly basis. So that's why there's that lag. It's just not something that we can go out and press a button and do immediately.

所以我們對第二季的看法是，如我所說，我們認為大概會在200個基點之間，可能還會略高一些。我們也有指數化協議，而這些指數化協議通常按季度調整。因此才會有那個落差。這不是我們可以出去按個按鈕就立刻做到的事情。

All right. Very helpful. And then I wanted to ask about the new transformation program that you guys announced in the press release and in your prepared remarks. Kind of what was the genesis of this program? And maybe just give a little bit more detail on what kind of actions you're taking that are beyond what you got -- the actions that you've announced with previous cost programs that are, I believe, still in mid-flight.

好的。非常有幫助。接著我想問一下你們在新聞稿以及事先準備的發言中宣布的新轉型計畫。這個計畫的起源是什麼？以及能否再多提供一些細節，說明你們正在採取哪些行動，是超出你們先前成本計畫所宣布的行動——我相信那些計畫目前仍在進行中。

Yes. We've sunset or I mean I guess there's a few lingering things with prior cost programs. But this is a new program. And the genesis of the program really is, I believe our EBITDA margins need to be above 18% and pushing 20% eventually. And we're in the sort of mid-teens space right now.

是的。我們已經讓先前的成本計畫告一段落——我的意思是，我想還有一些零星事項尚未完全結束。但這是一個新的計畫。而這個計畫的起源，主要是我相信我們的EBITDA利潤率需要高於18%，並且最終要推進到20%。而我們目前大概是在十幾%的區間。

And I've been in the role now for about 18 months. And I think visibility overall to how the company is operating, some things that kind of jump out to me are spans in layers. We had maybe added some layers of management that weren't there before. One of my philosophies was to bring the decision-making closer to the customer.

我擔任這個職務大約18個月了。我認為隨著對公司運作方式的整體能見度提升，有些事情特別突出，例如管理幅度與層級（spans and layers）。我們可能增加了一些以前沒有的管理層級。我其中一個理念，是把決策更貼近客戶。

I really would like to have our culture be one of working managers where we're hands-on working managers. So just in general like bringing clarity to the org structure and looking at areas where there's redundancy, maybe there's a little bit of bloat, we've addressed that and are addressing that. I mean this is also about -- Mike, there's tremendous complexity still lingering from when Quaker and Houghton came together in 2019, that was a huge transformational deal.

我真的希望我們的文化是「工作型管理者」的文化，也就是管理者要親力親為。總體而言，例如讓組織架構更清晰，並檢視哪些地方有重複、可能有些臃腫，我們已經在處理也正在處理。我的意思是，這也關乎——Mike，從2019年Quaker與Houghton合併以來，仍然殘留著巨大的複雜性，那是一筆非常重大的轉型交易。

And while we've integrated very well, we've had great customer retention, and we're able to supply our customers. I think there's also the reality that our master data is a little messy that creates a lot of inefficiency that creates a lot of manual work. We looked at our business processes and just certain things like how we process intercompany charges amongst ourselves and how many times our customer service people have to touch an order before it gets to the customer, it's really inefficient.

雖然我們整合得很好、客戶留存也很出色，而且能夠供應客戶，但現實是我們的主資料（master data）有點凌亂，這造成很多低效率與大量人工工作。我們檢視了業務流程，例如我們內部公司間費用（intercompany charges）如何處理，以及我們的客服人員在訂單送達客戶之前需要觸碰（處理）多少次，這真的很沒有效率。

And so the key thrust of this is around business process optimization and making sure that we have a Quaker-Houghton way of doing things. Tied very closely to that is our master data and we have a very good line of sight to where that's going. And I actually think that there's efficiency that's at the end of that process that will -- we can start to leverage things like AI and shared services type program to make the business more competitive.

因此，這項計畫的核心推力在於業務流程最佳化，並確保我們有一套「Quaker-Houghton的做事方式」。與此緊密相連的是我們的主資料，我們對其改善方向有非常清楚的掌握。我其實認為，在那個流程的末端會有可釋放的效率——我們可以開始運用像AI以及共享服務（shared services）類型的計畫，讓業務更具競爭力。

This is not a reaction to what's happening in the Middle East. This is something that I feel we need to do. It's the right thing to do for the business. We've got to be more efficient. We got to have a more modern employee and customer experience.

這不是對中東正在發生的事情的反應。這是我認為我們必須做的事，對業務而言是正確的事。我們必須更有效率。我們必須提供更現代化的員工與客戶體驗。

And it's time to kind of bring the company forward, and so we can really start to take advantage of a more modern set of tools.

現在是時候把公司往前推進，這樣我們才能真正開始利用一套更現代化的工具。

That makes sense. And then I guess last question for now is just -- as always, I'm trying to get a little bit of a sharper view on how you guys are thinking about EBITDA for the next quarter. You mentioned the gross margin pressure.

這很合理。那我想目前最後一個問題是——一如往常，我想更精準地了解你們對下一季EBITDA的看法。你提到了毛利率壓力。

Typically, you guys would see some seasonal improvement in EBITDA, but it sounds like maybe that could be completely offset by gross margin pressure. So is it fair to say we're probably looking at an EBITDA number in the second quarter that's pretty similar to what you guys just reported in Q1?

通常你們會看到EBITDA有一些季節性改善，但聽起來可能會被毛利率壓力完全抵消。所以這樣說是否合理：我們可能看到第二季的EBITDA數字，會和你們剛在第一季報告的相當接近？

Mike, I think that's fair. I do think the volume aspect of this surprisingly, in the market that we're in, you would think as volatile as it is, our volume is very strong. So I do feel confident that second quarter volumes will sequentially improve that even where I sit today, I would expect year-over-year improvement. There's visibility to our order book. There's visibility to business that we've won and sort of the wrap effect of that, what's in the pipeline.

Mike，我認為這樣說合理。我確實認為，令人意外的是，在我們所處的市場環境下，你會以為波動這麼大，我們的銷量其實非常強勁。所以我有信心第二季的銷量會較前一季改善；即使以我今天所看到的情況，我也預期會有年對年成長。我們對訂單簿有能見度，也能看到我們贏得的業務，以及其帶來的延續效應（wrap effect），以及管線中的機會。

I mean we have a couple of parts of our business where we're actually adding labor to boost up some of our off shifts to keep up with demand. So the demand aspect of it is very good. And we're putting price in. That price will not all be in, in the second quarter, and there's another phase coming. But I do think from a volume perspective, we expect it to be better and seeing some of that normal seasonality that you see.

我的意思是，我們有幾個業務部門實際上正在增加人力，提升一些非主要班次的產能，以跟上需求。因此需求面非常好。我們也在推動漲價。這些漲價不會在第二季全部反映，後面還有另一個階段。但我確實認為從銷量角度，我們預期會更好，並看到你所說的那種正常季節性。

But there will be the side of gross margin. And I think the math would say we're going to be within range, right, of where we landed Q1.

但毛利率那一面仍然存在。我想從數學上來看，我們會在一個區間內，對吧，大致接近第一季落點。

Jonathan Tanwanteng, CJS Securities.

Jonathan Tanwanteng，CJS Securities。

I was wondering if you could talk about the expanded credit agreement you did recently and your thoughts maybe on capital allocation from here. Did you update that? I know that it was becoming current, but the expanded size, did you do that to accommodate your expected operational organic growth? Or did you see more of an opportunity maybe to do share repurchases or M&A here? Maybe just give us a little more color on the opportunities that you see going forward and how you address that?

我想請你談談你們最近做的擴大版信貸協議，以及你們對接下來資本配置的想法。你們有更新那個協議嗎？我知道它原本快要轉為流動（becoming current），但這次擴大規模，是為了配合你們預期的營運性有機成長？還是你們看到更多機會，例如進行庫藏股回購或併購（M&A）？能否再多提供一些你們往前看所看到的機會，以及你們會如何因應？

Yes. John, this is Tom. I'll share some thoughts on that. I would say, first and foremost, the update to the credit agreement was really about an opportunity to extend maturities, right? So we were going current here in June of this year with a maturity of our existing facility in June of 2027.

是的。John，我是Tom。我分享一些看法。我會說，首先也是最重要的，這次更新信貸協議主要是把握延長到期日的機會，對吧？我們原本在今年六月會面臨「轉為流動」的情況，而現有融資額度的到期日是2027年6月。

So this gave us an opportunity to extend that out to April of 2031 and add some additional years with respect to the facility.

因此這讓我們有機會把到期日延長到2031年4月，並在該融資額度上增加一些額外年期。

It does add additional capacity for us to really continue to be flexible and use all the available tools from a capital allocation standpoint. We continue to be focused on investing in growth, both from an inorganic standpoint as well as organic growth, things like our new plant in China.

這也為我們增加了額外的可用額度，使我們能持續保持彈性，並在資本配置上運用所有可用工具。我們仍然專注於投資成長，包括非有機成長以及有機成長，例如我們在中國的新工廠。

And then I think as I said in my prepared remarks, we continue to weigh how we deploy capital for growth as well as return capital to shareholders through opportunistic share buybacks and continue to pay a dividend and those sorts of things. And so I think it's a combination of extending our maturity, some additional capacity, which gives us more flexibility from a capital allocation standpoint. We also improved terms as part of this refinancing of the facility.

然後我想如同我在事先準備的發言中所說，我們會持續權衡如何部署資本，用於成長，同時也透過機會型的股票回購向股東返還資本，並持續支付股利以及諸如此類的事項。所以我認為這是延長到期日、增加一些額外額度的組合，讓我們在資本配置上更有彈性。我們也在這次融資再融資（refinancing）中改善了條款。

And we have a great and supportive bank group that enabled us to accomplish those things in terms of the maturity and the additional capacity and the improved terms.

而且我們有一個非常優秀且支持我們的銀行團，讓我們能在到期日、額外額度以及改善條款等方面完成這些事情。

Got it. And maybe just to be a little more focused here, do you see opportunity just given the market volatility, whether it's in your own shares or in potentially acquiring tuck-ins or larger players?

了解。那如果更聚焦一點，在市場波動之下，你是否看到機會——不論是在你們自家股票，或是在收購補強型標的（tuck-ins）或更大型的同業？

Yes. I'd say, John, yes to both, right? I think we have done -- it's been a couple of quarters since we've done anything meaningful on share repurchase, but we're not gun shy to do that. Balance sheet is in good position. So if the opportunity presents itself, we expect we will do that.

是的。我會說，John，兩者都是，是的。我的意思是，我們已經有幾個季度沒有做任何有意義的股票回購，但我們並不畏縮。資產負債表狀況良好。所以如果機會出現，我們預期會去做。

I would also say that the M&A pipeline, as always, remains active. There are a number of sort of bolt-on tuck-in type of opportunities out there that we think will give us more things in the portfolio that we could sell to our existing customers.

我也會說，併購（M&A）管線一如往常仍然活躍。市場上有不少屬於加掛式、補強型（bolt-on tuck-in）的機會，我們認為這能讓我們的產品組合增加更多項目，進而銷售給我們既有的客戶。

And those types of deals have been very accretive for the company in the past and part of our strategy -- and will be part of our strategy going forward. So I would say yes to both questions. And we're really happy we got the financing done, when we got it done and that the terms and additional flexibility that came with it.

而且這類交易過去對公司而言一直非常具增益性（accretive），也是我們策略的一部分——未來也將持續是我們策略的一部分。所以我會說兩個問題的答案都是肯定的。我們也非常高興能在當時完成融資，並且取得了相應的條款以及隨之而來的額外彈性。

Laurence Alexander, Jefferies.

Laurence Alexander，Jefferies。

It's Dan Rizzo on for Laurence. A couple of things. As you aim for your 18% to 20% EBITDA margins, once, I guess, some of this volatility maybe subsides and your restructuring is in place, how should we think about incremental margins kind of in the mid-cycle? I mean it's obviously increasing. I was wondering how we should kind of -- how we could quantify it?

我是代 Laurence 發言的 Dan Rizzo。有幾點想請教。當你們以 18% 到 20% 的 EBITDA 利潤率為目標時，一旦我想，這些波動可能有所緩和、且你們的重組到位之後，我們應該如何看待在中期循環（mid-cycle）的增量利潤率？我的意思是，它顯然在上升。我想知道我們應該如何——或我們可以如何量化它？

Yes. Dan, it's Tom. Thanks for the question. I think as we're thinking about driving towards that 18% plus EBITDA margin, I think our assumptions relative to our targeted gross margin range remain consistent in that 36% to 37%. I think what you heard us talk about in our prepared remarks and some of Joe's comments is really around this opportunity from a transformational and restructuring program to focus on cost and complexity reduction with respect to our G&A functions, our manufacturing and supply chain network.

是的。Dan，我是 Tom。謝謝你的問題。我認為，當我們朝 18% 以上的 EBITDA 利潤率推進時，我們對於目標毛利率區間的假設仍然一致，維持在 36% 到 37%。我想你在我們事先準備的發言以及 Joe 的一些評論中聽到的，主要是圍繞這個機會：透過一項轉型與重組計畫，聚焦於成本與複雜度的降低，涵蓋我們的 G&A 職能、製造以及供應鏈網路。

And so as we look out over the next couple of years, where we see some leverage is really as we think about SG&A as a percent of sales, those G&A functions and driving some of that cost and complexity out of the business. And that's really the pathway towards that 18% as well as volume growth and continuing to work around net share gains and some of the things that we've been able to successfully execute.

因此，當我們展望未來幾年，我們看到的槓桿主要在於：當我們把 SG&A 作為銷售額的百分比來看時，透過這些 G&A 職能把部分成本與複雜度從業務中移除。這正是通往 18% 的路徑，同時也包括銷量成長、持續推動淨市占提升，以及我們已成功執行的一些事項。

I'm sorry, did you mention or did I not hear what the cash cost of the plan is, the new plan?

抱歉，你有提到——還是我沒聽到——這個計畫（新計畫）的現金成本是多少嗎？

No, we didn't mention anything specific about the cash cost of the plan. I think the -- what I said was we will pace this out over time. So for instance, we're not planning to put a big new ERP system in, right? So it's not going to be a huge outlay. I think what's typical here is 1 times to 1.5 times to achieve the types of synergies that we're looking at.

沒有，我們沒有具體提到該計畫的現金成本。我想——我說的是我們會隨時間推進。例如，我們並不打算導入一套大型的新 ERP 系統，對吧？所以不會有巨額支出。我認為這裡典型的情況是，為了達成我們所尋求的那類協同效益，成本大約是 1 倍到 1.5 倍。

So we're not planning any sort of extraordinary type of investment to get there, Dan. Hopefully, that answers that question.

所以我們不打算為了達成目標而進行任何非同尋常的投資，Dan。希望這回答了你的問題。

No, that does. That's helpful. And then my final question. So you guys have done a good job, obviously, always of increasing market share. But you have a lot of new products from Houghton, from Dipsol.

有的，這很有幫助。然後我最後一個問題。你們顯然一直都很擅長提升市占率。但你們有很多來自 Houghton、來自 Dipsol 的新產品。

I was wondering how much of your share growth is increased sales to existing customers versus going into like kind of different customers and how that kind of breaks out?

我想知道，你們的市占成長有多少是對既有客戶的銷售增加， versus 進入像是不同的新客戶？大概是怎麼拆分的？

It's a really great question, Dan. It's much easier to go in and what we say is grab a share of the wallet versus opening up a new door with someone that you don't have a relationship with. So proportionately, most of the gains that we're getting are coming from share gain within existing customer, growing that share of wallet, right?

這是個非常好的問題，Dan。更容易的是我們所說的「提高錢包份額（share of the wallet）」而不是去敲開一扇你沒有關係的新門。所以按比例來看，我們取得的大部分增量都來自於既有客戶內部的市占提升，也就是提高錢包份額，對吧？

It's the customer who may be buying a lubricant from us that we could sell them a grease, especially grease, a fire-resistant hydraulic, a finishing -- metal finishing type of chemical. So it's really the majority, high majority is coming from that growing with existing customers, new parts of the portfolio.

例如，客戶可能向我們購買潤滑油，而我們可以再賣給他們潤滑脂（尤其是潤滑脂）、耐火液壓油、表面處理——金屬表面處理類的化學品。所以絕大多數、非常高比例的成長，來自於在既有客戶中成長、銷售產品組合中的新部分。

That's very helpful.

非常有幫助。

Arun Viswanathan, RBC Capital Markets.

Arun Viswanathan，RBC Capital Markets。

Congrats on the quarter. I guess I understand the couple of hundred basis points of gross margin compression maybe that you're expecting for Q2 because of the lag in pricing for raws. I would have two questions. So first off, do you expect to fully recover that in the second half, which -- and does that imply that you have to actually price above inflation? And then secondly, I know you guys were successful in recouping inflation in the last inflationary cycle in '22, '23, and you were able to price seemingly above inflationary levels.

恭喜本季表現。我想我理解你們可能預期第二季毛利率會因原料定價落後而壓縮幾百個基點。我有兩個問題。第一，你們是否預期在下半年完全收回？而這是否意味著你們必須把價格調到高於通膨？第二，我知道你們在上一輪通膨循環（2022、2023 年）成功回收通膨影響，而且你們似乎能把價格調到高於通膨水準。

But is the demand picture now maybe slightly choppier or less robust and would make that a little bit more difficult or take longer to recoup those margins? Or how should we think about that?

但現在的需求面是否可能稍微更顛簸或不那麼強勁，從而讓回收毛利變得更困難或需要更長時間？我們應該如何看待？

Yes. No, good questions, Arun. Thanks for those. I would say, the goal overall is we have these target gross margin ranges. I talked about the 18% EBITDA, and we're pretty committed to that, right?

是的。Arun，問題很好，謝謝。我會說，整體目標是我們有這些目標毛利率區間。我談到 18% 的 EBITDA，我們對此相當堅定，對吧？

So that would imply in this type of environment that you've got to stay ahead of inflation a little bit. That being said, we volume, making sure we retain and we don't have a lot of churn, and we can continue to stack the wins and the growth that we're seeing going forward is also part of it.

所以在這種環境下，這意味著你必須稍微跑在通膨前面一點。話雖如此，銷量——確保我們能留住客戶、沒有太多流失，並且能持續累積勝利與我們未來看到的成長——也是其中一部分。

About 1/4 of our pricing is on index. So it takes away a lot of the emotional aspects of this. Our customers, I think, understand the situation that we're in right now. And we've also said, look, if things recess in the cost side, we will act to accordingly. And we're not trying to gouse them in any way.

我們大約 1/4 的定價是採用指數（index）機制。因此它去除了很多情緒性的因素。我認為客戶理解我們目前所處的情況。我們也說過，若成本端出現回落，我們會相應採取行動。我們並不是想以任何方式去「狠宰」他們。

We're trying to be very responsible about it, as I said previously. The demand environment right now, surprisingly is very strong. And will that change? It's possible it will. In any type of inflationary environment like that, it could happen. But through, say, the first four months of the year and visibility to where we are with our demand currently, we're not seeing that.

如我先前所說，我們希望以非常負責任的方式來處理。當前的需求環境出乎意料地強勁。這會改變嗎？有可能會。在那樣的通膨環境下，確實可能發生。但就今年前四個月以及我們目前對需求的能見度而言，我們沒有看到那種情況。

We think we'll be okay. And then the margin question specifically, we do think by the end of the year that we would get back into this 36% to 37% range, and that's our goal.

我們認為會沒問題。至於毛利率問題本身，我們確實認為到今年年底，我們會回到 36% 到 37% 的區間，這是我們的目標。

Okay. Great. And then I guess a follow-up, maybe I could just ask about the volumes. You said that the volume environment is supply -- or the demand environment is quite strong. Maybe you can just kind of describe that a little bit more in detail because is it steel utilization rates are really holding up and aluminum maybe as well, automotive.

好的，很好。那我追問一下，或許我可以問一下銷量。你提到銷量環境——或需求環境——相當強勁。也許你可以更詳細描述一下，因為是鋼鐵產能利用率真的撐住了，鋁也一樣，還有汽車？

Maybe you can just touch on some of the end markets. And also regionally, it seems like, obviously, Asia Pacific has remained relatively strong and you're benefiting from some wins. But North America and Europe, are you also seeing some improvement? Or how should we think about that?

也許你可以談談一些終端市場。另外在區域方面，看起來亞太顯然仍相對強勁，你們也受益於一些勝利。但北美與歐洲，你們是否也看到一些改善？或者我們應該如何看待？

Yes. No. Look, I think the main takeaway here is we're really punching above our weight. And let's focus on Asia because the results there are very, very strong, double-digit volume growth. I mean that's against the backdrop of industrial production actually declined in China in the first quarter, and we've seen light vehicle builds really in all regions down between 2% and 4%.

是的。不是。你看，我認為這裡最主要的重點是，我們的表現確實超出自身量級（punching above our weight）。先聚焦亞洲，因為那裡的結果非常、非常強勁，銷量雙位數成長。這是在中國第一季工業生產實際下滑的背景下發生的，而且我們看到各區域的輕型車產量大致都下滑 2% 到 4%。

So we are outperforming the markets that we're in. We've seen some improvement on the metal side, steel and aluminum production that can at times be a precursor that automotive is going to swing back, right?

所以我們的表現優於我們所處的市場。我們也看到金屬端有些改善，鋼與鋁的產量提升，有時這可能是汽車將回升的前兆，對吧？

End of Q1, I think, as I mentioned, North America seem to pick up a little bit and North America will drive our Americas segment. And then typically, as you head out of Q1 in areas like Asia, you put the Lunar holiday behind you and you get into normal seasonality patterns. And I think they had a tough first part of the year, China, especially, but areas outside of China, India, Vietnam, Thailand, actually, they had pretty good performance. And so that offsets a little bit what's happening in China.

第一季末，如我提到的，北美似乎有些回升，而北美將帶動我們的美洲事業部。然後通常當你走出第一季，在亞洲這類地區，農曆假期結束後，就會回到正常的季節性模式。我認為中國在年初的表現較為艱難，尤其是中國本身，但中國以外的地區——印度、越南、泰國——其實表現相當不錯。因此這在一定程度上抵消了中國發生的情況。

So all in all, like as we head into the second quarter, as I said, I think the sort of normal seasonality returns. That's what it feels like right now. And then us taking share, consistently taking share above market, we would expect that would continue into the year.

所以總體而言，當我們進入第二季時，如我所說，我認為某種「正常季節性」正在回歸。這就是目前的感覺。再加上我們持續拿下市占、持續以高於市場的速度取得市占，我們預期這種趨勢會延續到今年。

David Silver, Freedom Capital Markets.

David Silver，Freedom Capital Markets。

I have a couple of questions. First one, tactical. Second one, maybe a little bit longer term. But on the tactical one, and I'll apologize in advance if this sounds very naive. But I'm leaning on your long experience on the commercial side, Joe.

我有幾個問題。第一個偏戰術層面。第二個可能偏長期一些。但先談戰術面的問題，我先道歉，如果這聽起來很天真。不過我想借重你在商務端的長期經驗，Joe。

And I'm sure that your company has a very detailed playbook for operating in conditions such as the one we're facing now with the volatile feedstock cost pressures.

我也確信你們公司對於在像我們現在面臨的這種、原料成本壓力波動劇烈的情況下如何運作，有一套非常詳細的作戰手冊。

And I'm just kind of scratching my head and I'm saying, why not a surcharge, I guess. In other words, something that can be pegged to something clearly visible to both sides, it might halt some of that 200 to 300 basis point erosion on the way up and the customer gets the assurance that when the relevant cost pressure abates that the pricing that persisted before this will quickly return.

我只是有點納悶，我想說，為什麼不採用附加費（surcharge）呢。換句話說，用一個雙方都清楚可見、可對應到某個明確指標的機制，或許能在上行過程中阻止那種200到300個基點的侵蝕，同時也能讓客戶安心：當相關的成本壓力緩解時，先前的定價會很快回到原本的水準。

But I'm sure your company has a long playbook. Maybe if you could just share some of your thinking about how Quaker typically goes about recouping cost pressures in fast-moving markets such as the one here.

不過我相信你們公司有一套長期的作戰手冊。也許你可以分享一下你們的想法：在像目前這種快速變動的市場裡，Quaker通常是如何著手回收（轉嫁）成本壓力的？

Yes. No, good question. So we do use surcharges. That is something that we do. And really, you're able to put some of that in immediately, especially when it comes to things like freight.

是的。不，這是個好問題。我們確實會使用附加費，這是我們會做的事情。實際上，你可以立刻把其中一部分加上去，尤其是像運費這類項目。

Other parts of the business, I mean, we have to go in and really show the data to the customer. Just as our suppliers come to us, we push back and say, well, why is this going up and I'm going to shop it around then. That happens when we talk to our customers as well.

至於業務的其他部分，我的意思是，我們必須進去並把數據真正展示給客戶看。就像我們的供應商來找我們一樣，我們也會反問並施壓：為什麼這個要漲？那我就要去比價了。當我們和客戶談時，也會發生同樣的情況。

So I think the nature of how we -- and our relationship, we're not a commodity, right? We are really kind of embedded in these plants. We're sitting in the morning meeting. We are part of their -- really become part of their operations in some cases.

所以我認為，我們的做法——以及我們的關係——我們不是大宗商品，對吧？我們其實是深度嵌入這些工廠的。我們會坐在早上的會議裡；在某些情況下，我們真的成為他們營運的一部分。

So we have to bring the data. We have to give them justification. And a lot of times, we have to give them options about what we're going to do about it, right? Can we do something to offset it in other ways through service or bundling of product. So it's a laborious process, but it's also very, very necessary.

因此我們必須拿出數據，必須給他們合理的依據。很多時候，我們還得提供選項，說明我們打算怎麼處理，對吧？我們能不能透過服務或產品組合（bundling）等其他方式來抵消一些影響。所以這是一個繁瑣的流程，但也非常、非常必要。

I think if you're going to have long-term trusting relationships with your customers, that's really the only way we can kind of approach it.

我認為，如果你要和客戶建立長期、互信的關係，這基本上是我們唯一能採取的方式。

We would love to be able to be more efficient and quicker with these things, but it's extremely volatile. And then you run into these situations where every Friday, something changes, right? And you have to kind of adjust to that as well. But I think over the long term, David, our goal is to get back to this target range gross margin. That's something that we've always done and I've also been pretty open about the fact that it does take us a quarter or two lag to catch up.

我們當然希望在這些事情上能更有效率、更快，但市場波動非常劇烈。接著你就會遇到這種情況：每個星期五都會有變化，對吧？你也必須隨之調整。不過從長期來看，David，我們的目標是回到這個目標區間的毛利率。這是我們一向在做的事；而且我也一直很坦白地說，我們確實需要一到兩個季度的落後期才能追上。

Okay. Great. I have a longer-term question or a question about a longer-term topic. But one of the trends that's going to become increasingly apparent, I guess, over the next couple of years will be reshoring and onshoring of heavy industry here. So with your global footprint, I'm guessing that Quaker has about as good a view on automakers and primary metals activities that might be showing up in the US from some offshore companies.

好的。很好。我有一個比較長期的問題，或是關於一個長期主題的問題。未來幾年會越來越明顯的一個趨勢，我想，是重返本土生產（reshoring）以及在地設廠（onshoring）的重工業。以你們的全球布局來看，我猜Quaker對於可能從海外公司轉移到美國的汽車製造商與一次金屬（primary metals）活動，應該有相當不錯的視角。

And I was just wondering, does Quaker have a playbook currently to maybe capture a little more than your share of this new investment coming to, let's say, the United States. Is there a process? Do you have to qualify 12 months or 18 months in advance? Just what is the playbook that Quaker is developing to maybe take full advantage of the coming wave of large investments in automotive and other kind of heavy industry assets here?

我想問的是，Quaker目前是否有一套作戰手冊，能在這些新投資（比如說流向美國的投資）中，爭取到略高於你們既有市占的份額？是否有一個流程？你們是否需要提前12個月或18個月完成資格認證？Quaker正在建立什麼樣的作戰手冊，以便充分把握即將到來的汽車與其他重工業資產的大型投資浪潮？

Yes, great question. We do have a playbook. And I think that playbook is pretty consistent regardless of what region new capacity is coming online. Look, we are seen as the industry leader. We participate in industry technical groups and forums.

是的，很好的問題。我們確實有一套作戰手冊。而且我認為，不論新產能在哪個地區上線，這套作法都相當一致。你看，我們被視為產業領導者。我們參與產業技術團體與論壇。

And when -- and we maintain relationship with the mill builders and the equipment suppliers. And so when a new installation comes on, and you rightly point out that there's a lot of investment in North America right now, -- we generally know about it in the early phases.

而且——我們也維持與鋼廠建置商（mill builders）以及設備供應商的關係。因此當有新的裝置要上線時，而你也正確指出目前北美有大量投資——我們通常在早期階段就會知道。

We try to be involved on the front end in the design of those systems. And more often than not, when new capacity comes online, we're the incumbent supplier. So that is something that is part of our playbook. How do we make sure that, that's a valuable approach for our customers. We have our own CNC machines.

我們會嘗試在前端就參與那些系統的設計。多數情況下，當新產能上線時，我們就是既有供應商（incumbent supplier）。所以這確實是我們作戰手冊的一部分：我們如何確保這對客戶而言是一種有價值的方法。我們有自己的CNC機台。

We have a pilot rolling mill in the company, and we can really do some things on the front end to test and ensure that we're going to have success when they start these mills up, and that's something that's really important.

公司內部也有一座試驗轧鋼廠（pilot rolling mill），因此我們可以在前端做一些測試，並確保當他們啟動這些轧機時我們能成功運作，這點非常重要。

I think the other aspect of this is there's been a shift, right? I mean if you look at metal production in China, I think more steel is made there than the rest of the world combined. And when you look at the trends just in the past few years, automotive production in China is starting to really take off. And you're seeing the Chinese brands be more prominent in Africa and Southeast Asia and even in Europe and not so much here yet. But like we've always said we're kind of agnostic of where it gets made.

我認為這件事的另一個面向是，確實出現了轉移，對吧？如果你看中國的金屬產量，我想那裡的鋼產量比世界其他地區加總還多。而且如果你看過去幾年的趨勢，中國的汽車產量正開始大幅起飛。你也看到中國品牌在非洲、東南亞，甚至在歐洲變得更顯著，雖然在這裡還沒那麼多。但就像我們一直說的，我們對於在哪裡生產其實是中立的（agnostic）。

And I think just my point is, as that part of the business grows, I think we're very pleased with our ability to kind of grow in a differential way right now in that part of the world. That's something that's been very intentional.

我想我只是要說，隨著那一部分業務成長，我們對於目前在那個地區以差異化方式成長的能力感到非常滿意。這是我們非常刻意去做的。

Okay. Great. I appreciate all the color.

好的。很好。我很感謝你提供的所有補充說明。

Jon Tanwanteng, CJS Securities.

Jon Tanwanteng，CJS Securities。

Thank you for the followup. I apologize if you already addressed this. But I was wondering if you could talk about the potential for demand destruction or disruption at your customers and what you plan for in your scenario analysis as you consider what would happen if Iran or the Mid East conflict was extended. Have you talked to your customers about them and what contingencies might be and what your earnings profile and revenue profile might look like if that were to happen?

謝謝你讓我追問。如果你已經回答過，我先道歉。不過我想請你談談：你們客戶端可能出現需求破壞（demand destruction）或中斷（disruption）的可能性；以及在情境分析中，當你們考量若伊朗或中東衝突擴大時會發生什麼，你們會如何規劃？你們是否和客戶談過他們的狀況、可能的應變方案，以及如果真的發生，你們的獲利輪廓與營收輪廓可能會是什麼樣子？

Yes, Jon. I mean, look, we talk to our customers every day about that. We're watching that as closely as we can. I think -- and it's a tough thing to predict. I would say right now, there's an equal chance that this thing is prolonged or not prolonged.

是的，Jon。你看，我們每天都會和客戶談這件事。我們也盡可能密切關注。我認為——這很難預測。我會說，就目前而言，這件事延長或不延長的機率大致相當。

There's -- I would also say there's an equal chance that there's going to have some impact on demand that could be very, very disruptive or it's going to have no impact, right? And so when we talk about our sort of our model and how we're looking at the year, I'm basing it upon what the most -- the information I have today, which is as we head into -- we're now well into the second quarter, visibility on what we have, I'm not seeing that sort of catastrophic demand disruption on the horizon.

我也會說，對需求造成影響的機率也差不多：可能會非常、非常具破壞性，也可能完全沒有影響，對吧？因此當我們談到我們的模型以及我們如何看待今年時，我是基於我今天掌握的最新資訊。也就是說，當我們進入——我們現在已經在第二季進行了一段時間，就我們目前的能見度而言，我沒有看到那種災難性的需求中斷即將出現。

We're not hearing that from our customers, so we're not expecting it at this point. Is it possible it happens? Absolutely. The longer this thing goes on and the higher inflation goes, it's not necessarily good for anyone's business, right if that continues, but I think we can't necessarily bake that scenario in, although, as I said earlier, there's probably an equally likely chance that happens or it doesn't happen right now.

我們也沒有從客戶那裡聽到這樣的訊號，所以目前我們不預期會發生。它有可能發生嗎？當然有。這件事拖得越久、通膨越高，若持續下去，對任何人的生意都不見得是好事，對吧？但我認為我們不一定能把那種情境直接納入假設；不過如我先前所說，目前發生或不發生的機率大概同樣高。

So based upon that, our outlook is kind of like with all the information we have today, the best thing we know and looking at all the empirical evidence we have, we're not seeing that yet. So we didn't bake that into our guide.

因此基於這點，我們的展望就是：以我們今天掌握的所有資訊、我們所知道的最佳判斷，以及我們擁有的所有實證證據來看，我們還沒有看到那樣的情況。所以我們沒有把它納入我們的財測指引。

And we have -- there are no further questions at this time. I would like to turn the floor back over to Joe Berquist for closing comments.

目前沒有其他問題。我想把時間交回給Joe Berquist做結語。

Thank you. Yes, we, again, really appreciate the interest in Quaker-Houghton. I want to thank all of our employees for what they continue to do in these really volatile times and especially our employees that were impacted in this, the region close to the conflict and the amazing work that they've done to keep our customers supplied.

謝謝。是的，我們再次非常感謝大家對Quaker-Houghton的關注。我也要感謝所有員工在這些高度波動的時期持續付出的努力，特別是那些在靠近衝突地區、受到影響的員工，以及他們為了確保我們能持續供貨給客戶所做的出色工作。

So -- appreciate the questions. If there's any follow-up, don't hesitate to reach out to John Dalhoff, and we'll be happy to answer any additional questions you have. Thanks.

所以——感謝各位的提問。如果還有任何後續問題，請隨時聯絡John Dalhoff，我們很樂意回答你們的其他問題。謝謝。

Thank you. And this concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。您現在可以掛斷電話線。感謝您的參與。