Magna International Inc (MGA) 2022 Q2 法說會逐字稿

Greetings, and welcome to the Second Quarter 2022 results for Magna International. (Operator Instructions) As a reminder, this conference is being recorded Friday, July 29, 2022.

您好，歡迎來到麥格納國際 2022 年第二季度業績。 （操作員說明）提醒一下，本次會議將於 2022 年 7 月 29 日星期五錄製。

I would now like to turn the conference over to Louis Tonelli, VP Investor Relations. Please go ahead.

我現在想將會議轉交給投資者關係副總裁 Louis Tonelli。請繼續。

Thanks, Silvana. Hello, everyone, and welcome to our conference call covering our Q2 2022 results. Joining me today are Swamy Kotagiri, Vince Galifi and Pat McCann. Yesterday, our Board of Directors met and approved our financial results for Q2 '22. We issued a press release this morning outlining our results. You'll find the press release, today's conference call webcast, the slide presentation to go along with the call and our updated financial review, all in the Investor Relations section of our website at magna.com.

謝謝，西爾瓦娜。大家好，歡迎參加我們關於 2022 年第二季度業績的電話會議。今天加入我的還有 Swamy Kotagiri、Vince Galifi 和 Pat McCann。昨天，我們的董事會開會並批准了我們 22 年第二季度的財務業績。我們今天早上發布了一份新聞稿，概述了我們的結果。您可以在我們網站 magna.com 的投資者關係部分找到新聞稿、今天的電話會議網絡直播、電話會議的幻燈片演示以及我們更新的財務審查。

Before we get started, just as a reminder, the discussion today may contain forward-looking information or forward-looking statements within the meaning of applicable securities legislation. Such statements involve certain risks, assumptions and uncertainties, which may cause the company's actual or future results and performance to be materially different from those expressed or implied in these statements. Please refer to today's press release for a complete description of our safe harbor disclaimer. Please also refer to the reminder slide included in today's deck related to our commentary today.

在我們開始之前，提醒一下，今天的討論可能包含適用證券立法含義內的前瞻性信息或前瞻性陳述。此類陳述涉及某些風險、假設和不確定性，可能導致公司的實際或未來結果和業績與這些陳述中明示或暗示的存在重大差異。有關我們安全港免責聲明的完整說明，請參閱今天的新聞稿。另請參閱今天的套牌中包含的與我們今天的評論相關的提醒幻燈片。

And with that, I'll pass it over to Swamy.

有了這個，我會把它交給斯瓦米。

Thank you, Louis. Good morning, everyone. Happy to be here to provide a general update on Magna as well as our Q2 results.

謝謝你，路易斯。大家，早安。很高興在這裡提供有關麥格納的一般更新以及我們的第二季度業績。

Key takeaways from today's call. Continuing challenges have impacted our Q2 earnings. However, results were in line with our internal expectations. Once again, we generated organic sales outgrowth of weighted light vehicle production in the quarter, a trend we expect to continue in the second half of the year. We modestly increased our outlook for 2022 sales despite the recent strengthening of the U.S. dollar and we continue to make progress in our go-forward strategy, which will drive our business for years to come.

今天電話會議的主要內容。持續的挑戰影響了我們的第二季度收益。然而，結果符合我們的內部預期。我們再次在本季度實現了加權輕型汽車生產的有機銷售增長，我們預計這一趨勢將在今年下半年繼續。儘管近期美元走強，但我們仍適度提高了對 2022 年銷售額的展望，並且我們繼續在前進戰略上取得進展，這將推動我們未來幾年的業務。

I will briefly cover the current dynamics impacting the industry. We continue to experience supply constraints, including semiconductors. The China COVID lockdowns in the quarter created further supply chain bottlenecks that are still being felt in the industry. We do expect constraints to continue at least throughout '22 but expect improvement in the second half of the year relative to the first.

我將簡要介紹影響該行業的當前動態。我們繼續面臨供應限制，包括半導體。本季度中國 COVID 的封鎖造成了行業中仍然存在的進一步供應鏈瓶頸。我們確實預計限制至少會在 22 年持續存在，但預計下半年相對於上半年會有所改善。

Input costs remain at elevated levels. We remain highly focused on obtaining cost recoveries, have had some success, and we continue to have discussions with customers at various stages at various levels. The stronger U.S. dollar relative to other currencies, in which we operate, particularly the euro, is negatively impacting our reported results, and there is some risk going forward that high inflation and rising rates will impact auto consumers.

投入成本仍處於較高水平。我們仍然高度關注成本回收，取得了一些成功，並且我們繼續在各個階段與各個層面的客戶進行討論。美元相對於我們經營的其他貨幣（尤其是歐元）走強正在對我們報告的業績產生負面影響，並且未來存在一些風險，即高通脹和利率上升將影響汽車消費者。

In terms of tailwinds, dealer vehicle inventories remain low and underlying auto demand is relatively strong and constrained by the tight supply. These factors support improving production levels half of '22, particularly as semiconductor availability improves and the China government recently announced economic stimulus that should help drive auto demand.

在順風方面，經銷商車輛庫存保持低位，基礎汽車需求相對強勁，並受到供應緊張的製約。這些因素支持提高 22 年一半的生產水平，特別是隨著半導體可用性的提高以及中國政府最近宣布的經濟刺激措施應有助於推動汽車需求。

Our second quarter earnings were in line with our expectations. Relative to the second quarter of 2021, consolidated sales were $9.4 billion, up 4% compared to a 2% increase in global light vehicle production. On an organic basis, sales were up 12%, representing 4% growth over market. In fact, our organic sales grew faster than production in each of North America, Europe, Asia and South America.

我們第二季度的收益符合我們的預期。相對於 2021 年第二季度，綜合銷售額為 94 億美元，與全球輕型汽車產量增長 2% 相比增長 4%。在有機基礎上，銷售額增長了 12%，比市場增長了 4%。事實上，我們在北美、歐洲、亞洲和南美的有機銷售額增長速度都快於產量。

EBIT margin declined 240 basis points to 3.8% substantially as a result of higher net input costs. We also had operating inefficiencies at a best facility in Europe. The inefficiency has negatively impacted the second quarter by about 25 basis points.

由於淨投入成本增加，息稅前利潤率大幅下降 240 個基點至 3.8%。我們在歐洲最好的工廠也存在運營效率低下的問題。效率低下對第二季度產生了約 25 個基點的負面影響。

Our adjusted EPS fell to $0.83 for the quarter. On a U.S. GAAP reported basis, EPS declined to a loss of $0.54, reflecting a noncash impairment charge on our investment in Russia that amounted to $1.24. And free cash flow was $52 million in Q2, down year-over-year, but up $151 million sequentially from the first quarter of 2022.

我們本季度調整後的每股收益跌至 0.83 美元。根據美國公認會計原則報告，每股收益下降至虧損 0.54 美元，反映了我們在俄羅斯投資的非現金減值費用為 1.24 美元。第二季度自由現金流為 5200 萬美元，同比下降，但比 2022 年第一季度環比增長 1.51 億美元。

During the quarter, we repurchased 3.5 million shares using $212 million in cash and paid out another $130 million to shareholders in the form of dividends. While we are keeping our focus squarely on the short-term challenges we are facing, we continue to invest and prepare for the future. Back in May, we held an Investor Day in Cognac, Michigan, where many of you had the opportunity to experience firsthand some of our leading-edge technologies.

在本季度，我們以 2.12 億美元現金回購了 350 萬股股票，並以股息的形式向股東支付了另外 1.3 億美元。雖然我們將重點放在我們面臨的短期挑戰上，但我們會繼續投資並為未來做準備。早在 5 月，我們在密歇根州的干邑舉辦了投資者日，你們中的許多人有機會親身體驗我們的一些領先技術。

At that event, we also provided an update on our progress with our go-forward strategy, which focuses on accelerating deployment of capital towards high-growth areas, driving operational excellence and unlocking new business models in markets. We rolled this strategy after a year ago, and I'm pleased to report that we are executing on that strategy and in many areas performing even beyond our previous expectations.

在那次活動中，我們還提供了我們前進戰略的最新進展，該戰略側重於加速向高增長領域部署資本，推動卓越運營並在市場上開啟新的商業模式。我們在一年前推出了這一戰略，我很高興地報告說，我們正在執行該戰略，並且在許多領域的表現甚至超出了我們之前的預期。

We highlighted that as we accelerate deployment of capital towards high-growth areas, we are on track to meaningfully shift our portfolio in these areas as our business continues to grow from 18% to 24% of our business by 2027 based on our plans. We also highlighted how we continue to drive operational excellence through digitization and factory of the future tools. We believe these actions will ultimately allow us to continue to win business, manage ongoing price pressures, cost inflation and contribute to margin expansion.

我們強調，隨著我們加快向高增長領域部署資本，我們正朝著有意義的方向轉變我們在這些領域的投資組合，因為我們的業務將根據我們的計劃到 2027 年繼續從業務的 18% 增長到 24%。我們還強調了我們如何通過未來工具的數字化和工廠來繼續推動卓越運營。我們相信，這些行動最終將使我們能夠繼續贏得業務、管理持續的價格壓力、成本通脹並有助於擴大利潤率。

Lastly, as we examine the broader market for mobility, we see an expanding ecosystem for us to go beyond the traditional supply and manufacturer of vehicles, and we see a lot of opportunity to participate in this growing market. The current operating environment is challenging. However, we are managing through it, and I'm excited about what the future holds for Magna and our shareholders.

最後，當我們審視更廣泛的移動市場時，我們看到了一個不斷擴大的生態系統，我們超越了傳統的車輛供應和製造商，我們看到了參與這個不斷增長的市場的很多機會。當前的經營環境充滿挑戰。然而，我們正在通過它進行管理，我對麥格納和我們股東的未來感到興奮。

With that, I will hand it over to Pat to take you through the financials.

有了這個，我會把它交給帕特，讓你了解財務狀況。

Thanks, Swamy, and good morning, everyone. First, I'll start with a detailed review of the quarter. Global vehicle production increased 2% in the quarter, driven by North America, which was up 14%, partially offset by China and Europe down 5% and 1%, respectively.

謝謝，斯瓦米，大家早上好。首先，我將從對該季度的詳細回顧開始。本季度全球汽車產量增長 2%，其中北美增長 14%，部分抵消了中國和歐洲分別下降 5% 和 1% 的影響。

Our consolidated sales were $9.4 billion, up 4% from the second quarter of 2021. The increase was primarily due to higher North American vehicle production, higher assembly volumes, the launch of new programs and price increases to recover certain higher input costs. These were partially offset by the negative impact of foreign currency translation, lower sales in Russia, net divestitures and customer price concessions.

我們的綜合銷售額為 94 億美元，比 2021 年第二季度增長 4%。這一增長主要是由於北美汽車產量增加、裝配量增加、新項目的啟動以及為收回某些較高的投入成本而提價。這些被外匯換算、俄羅斯銷售額下降、淨資產剝離和客戶價格優惠的負面影響部分抵消。

On an organic basis, our sales increased 12% year-over-year, representing a 4% growth over market in the second quarter. Adjusted EBIT was $358 million, and adjusted EBIT margin declined 240 basis points to 3.8%, which compares to 6.2% in Q2 2021. The lower EBIT percent in the quarter was substantially due to higher net input costs.

在有機基礎上，我們的銷售額同比增長 12%，比第二季度的市場增長 4%。調整後息稅前利潤為 3.58 億美元，調整後息稅前利潤率下降 240 個基點至 3.8%，而 2021 年第二季度為 6.2%。本季度息稅前利潤下降的主要原因是淨投入成本增加。

Other items that negatively impacted margin were operating inefficiencies and other costs at a facility in Europe, reduced earnings on lower sales in Russia, a favorable value-added tax settlement in Brazil in Q2 of last year, lower tooling contribution and lower equity income. These items were partially offset by higher favorable commercial settlements, lower net warranty costs and divestitures of loss-making entities.

其他對利潤率產生負面影響的項目包括歐洲工廠的運營效率低下和其他成本、俄羅斯銷售額下降導致收益減少、去年第二季度巴西增值稅結算有利、模具貢獻減少和股本收入減少。這些項目被較高的有利商業結算、較低的淨保修成本和虧損實體的剝離部分抵消。

Equity income was down $19 million year-over-year to $25 million in the quarter. The decline reflects reduced earnings on lower sales and higher net input costs at certain equity-accounted entities and electrification spending in our LG JV. Our adjusted effective income tax rate came in at 24.9%, in line with our Q2 expectations, but higher than Q2 of last year.

本季度股票收入同比下降 1900 萬美元至 2500 萬美元。下降反映了由於某些權益核算實體的較低銷售額和較高的淨投入成本以及我們 LG 合資企業的電氣化支出導致收益減少。我們調整後的有效所得稅率為 24.9%，符合我們第二季度的預期，但高於去年第二季度。

Net income attributable to Magna was $243 million compared to $426 million in Q2 2021, reflecting lower EBIT, higher interest expense and a higher tax rate. Diluted EPS was $0.83 compared to $1.40 last year. The decrease is the result of lower net income, partially offset by a lower number of shares outstanding. The lower number of shares outstanding primarily reflects the impact of the purchase and cancellation of shares during and subsequent to Q2 of 2021.

歸屬於麥格納的淨收入為 2.43 億美元，而 2021 年第二季度為 4.26 億美元，反映了較低的息稅前利潤、較高的利息支出和較高的稅率。稀釋後每股收益為 0.83 美元，而去年為 1.40 美元。減少是由於淨收入下降，部分被流通股數量減少所抵消。流通股數量減少主要反映了 2021 年第二季度和之後的股票購買和註銷的影響。

I will now review our cash flows and investment activities. During the second quarter of 2022, we generated $560 million in cash from operations before changes in working capital and invested $139 million in working capital. Investment activities in the quarter included $329 million for fixed assets, an $80 million increase in investments, other assets and intangibles and $2 million in public and private equity securities. Overall, free cash flow was $52 million in Q2.

我現在將回顧我們的現金流和投資活動。在 2022 年第二季度，我們在營運資本變動之前從運營中產生了 5.6 億美元的現金，並在營運資本上投資了 1.39 億美元。本季度的投資活動包括 3.29 億美元的固定資產、8,000 萬美元的投資、其他資產和無形資產以及 200 萬美元的公共和私募股權證券。總體而言，第二季度的自由現金流為 5200 萬美元。

We also repurchased $212 million of our common shares and paid $130 million in dividends. At the end of the second quarter, our adjusted debt to adjusted EBITDA was $1.48 million and our liquidity remains strong at $5.2 billion, including almost $1.7 billion in cash.

我們還回購了 2.12 億美元的普通股，並支付了 1.3 億美元的股息。在第二季度末，我們調整後的債務與調整後的 EBITDA 為 148 萬美元，我們的流動性仍然強勁，為 52 億美元，其中包括近 17 億美元的現金。

Next, I will cover outlook. We have held our production estimates in line with our previous outlook. And we assume exchange rates and our outlook will approximate recent rates. Given recent currency moves, we now expect a weaker euro, Canadian dollar and renminbi for 2022 relative to our previous outlook.

接下來，我將介紹前景。我們的產量估計與我們之前的展望一致。我們假設匯率和我們的前景將接近近期匯率。鑑於最近的貨幣走勢，我們現在預計 2022 年歐元、加元和人民幣將相對於我們之前的展望走弱。

We have increased our expected ranges for BES, Power & Vision, Seating and consolidated sales, largely reflecting improved program mix, partially offset by the strengthening of the U.S. dollar, in particular, relative to the euro. Our Complete Vehicle segment has also improved mix programs. However, this benefit is more than offset by our assumption of a weaker expected euro leading to a slight reduction in the sales range.

我們提高了 BES、Power & Vision、座椅和綜合銷售的預期範圍，這在很大程度上反映了改進的計劃組合，部分被美元走強所抵消，特別是相對於歐元而言。我們的整車部門也改進了混合計劃。然而，這一優勢被我們對疲軟預期歐元導致銷售範圍略有減少的假設所抵消。

Interest expense has been reduced to approximately $80 million from approximately $90 million previously, primarily reflecting higher interest rates. And our expectations for the adjusted EBIT margin, equity income, tax rate, net income attributable to Magna and capital spending are all unchanged from our last outlook. And we have maintained our free cash flow projections in the range of $700 million to $900 million.

利息費用已從之前的約 9,000 萬美元減少至約 8,000 萬美元，主要反映了較高的利率。我們對調整後息稅前利潤率、股權收入、稅率、麥格納應占淨收入和資本支出的預期均與我們上次展望相同。我們將自由現金流預測維持在 7 億至 9 億美元之間。

In summary, our second quarter was in line with our expectations, and we anticipate stronger results in the second half of the year relative to the first half. Our sales outgrew weighted production for the quarter, and this is expected to continue. This is driving the increase in our outlook. We continue to focus on operational excellence, managing our costs and obtaining customer recoveries to help address the current challenges and our future. And we are making progress in our go-forward strategy.

總而言之，我們的第二季度符合我們的預期，我們預計下半年的業績將優於上半年。我們本季度的銷售額超過了加權產量，預計這種情況將持續下去。這推動了我們前景的增長。我們將繼續專注於卓越運營、管理成本和獲得客戶回報，以幫助應對當前的挑戰和我們的未來。我們正在推進我們的前進戰略。

Thanks for your attention this morning. We will be happy to answer your questions.

感謝您今天早上的關注。我們很樂意回答您的問題。

(Operator Instructions) Our first question comes from John Murphy with Bank of America Securities.

（操作員說明）我們的第一個問題來自美國銀行證券公司的 John Murphy。

Can you hear me okay?

你能聽到我的聲音嗎？

Yes, John.

是的，約翰。

Yes, John.

是的，約翰。

So I guess the first question is, the second quarter came in a fair amount weaker than we were expecting, but you maintain the full year. So I'm just curious if you look at this there a reasonably meaningful acceleration in the second half versus the first half on EBIT. I just -- what are the kind of the key drivers there? Is it a function of volumes coming through or there being more stability in schedules and law is easing? What are the key drivers there?

所以我想第一個問題是，第二季度的表現比我們預期的要弱得多，但你維持全年。所以我很好奇你是否看到下半年與上半年的息稅前利潤相比有相當有意義的加速。我只是 - 那裡的關鍵驅動因素是什麼？這是成交量的函數，還是時間表更加穩定，法律正在放鬆？那裡的關鍵驅動因素是什麼？

John, I think you've covered most of the key drivers. It really is driven by volumes. We are seeing -- when you neutralize for the amount of FX, given the euro's decline, we are seeing improved, I would say, production activity that's being offset by the foreign exchange. We have positive volumes. We also have positive mix.

約翰，我認為你已經涵蓋了大部分關鍵驅動因素。它確實是由數量驅動的。我們看到——當你對外匯數量進行中和時，鑑於歐元的下跌，我們看到生產活動有所改善，我想說的是，外匯抵消了生產活動。我們有積極的交易量。我們也有積極的組合。

And to your point earlier as well as we are seeing improvement in the cadence of our recoveries. And finally, we are seeing some stability coming into the production schedules. So I think all those factors are driving that cadence. But I think as well, John, I know the expectations for -- your expectations for Q2 are 1 level. I have to reiterate that our expectations were in line. So we executed against our expectations in Q2.

就您之前的觀點而言，我們看到我們的恢復節奏有所改善。最後，我們看到生產計劃出現了一些穩定性。所以我認為所有這些因素都在推動這種節奏。但我也認為，約翰，我知道你對第二季度的期望是 1 級。我必須重申，我們的期望是一致的。因此，我們在第二季度的表現違背了我們的預期。

Okay. All right. That's helpful. And then just a second question. I mean, traditionally, when times get tough, you guys win a decent amount of takeover business. And it's depending on where you sit in the value chain, it's kind of a tough time, particularly for some smaller suppliers. So I'm just curious if there any takeover business that you see either now that may be coming available for you or especially as volumes and some of these other suppliers can't handle the ramp back up? I mean have you -- are you seeing any of that now or expect to get some time in the coming quarters?

好的。好的。這很有幫助。然後只是第二個問題。我的意思是，傳統上，當形勢變得艱難時，你們會贏得相當數量的收購業務。這取決於你在價值鏈中所處的位置，這是一段艱難的時期，尤其是對於一些較小的供應商而言。所以我很好奇，您現在是否看到任何收購業務可能可供您使用，或者特別是在數量和這些其他供應商中的一些無法應對回升的情況下？我的意思是你有 - 你現在看到任何這些還是希望在未來幾個季度獲得一些時間？

John. I would say we are keeping our eyes wide open right now, and there is discussions to an extent, I would say, looking at takeover business and so on. I think as the current economic conditions continue or hopefully, they end soon, but as they continue for the next short period of time, I think there should be such opportunities. And whether it's customer interaction and learning from them and looking to help out there or just opportunities that come to us, we are being very attentive, let's say.

約翰。我想說，我們現在正睜大眼睛，並且在一定程度上進行了討論，我想說，著眼於收購業務等等。我認為隨著當前經濟狀況的持續或希望它們很快結束，但隨著它們在接下來的短時間內持續，我認為應該有這樣的機會。無論是客戶互動和向他們學習，尋求幫助，還是只是給我們帶來機會，我們都非常專心，比如說。

And Swamy, maybe just the last one. I mean when you look at what Ford is doing in a reordering and re-segmentation of it's not just into county, but it's internal ops around EVs and ICE. I mean what does that mean for you? I mean they're obviously a large customer and you see other large customers doing anything like that, that may either be good or bad for your business?

還有斯瓦米，也許只是最後一個。我的意思是，當您查看福特在重新排序和重新細分方面所做的事情時，不僅僅是進入縣，而是圍繞電動汽車和 ICE 的內部運營。我的意思是這對你意味著什麼？我的意思是，他們顯然是大客戶，而您看到其他大客戶在做類似的事情，這對您的業務可能是好是壞？

John, I think it's a fluid condition, but we are having a lot of conversations, whether it's with Ford or other customers who are looking at reprioritizing or looking at optimizing the best way to, I guess, address both segments, right, which is ICE as well as the fast accelerating EV market. But if you just look overall from an organizational perspective, how the purchasing functions work, how the development work is done, I think will have an impact on our conversations with them.

約翰，我認為這是一個不穩定的情況，但我們正在進行很多對話，無論是與福特還是其他正在考慮重新確定優先級或優化最佳方式的客戶，我想，解決這兩個細分市場，對，這是ICE 以及快速增長的電動汽車市場。但如果你只是從組織的角度來看，採購職能是如何運作的，開發工作是如何完成的，我認為會對我們與他們的對話產生影響。

As you know, with most of our customers, we have holistic strategy road map discussions. So we are at the table, given the various products that we are in. I think overall, it's going to be helpful for us, and we have said that in the Investor Day and many other occasions as we talk about system integration and bringing things together, and providing overall optimized cost at a system level rather than each of the product, I think Magna has a benefit.

如您所知，我們與大多數客戶都進行了全面的戰略路線圖討論。因此，考慮到我們所涉足的各種產品，我們坐在桌旁。我認為總的來說，這將對我們有所幫助，我們在投資者日和許多其他場合都說過，我們談論系統集成和帶來的東西在一起，並在系統級別而不是每個產品上提供整體優化成本，我認為麥格納有一個好處。

As you talked about electrification and what happens to the body and therefore, its impact on the seats are a good example we talked about DMS how inside mirrors can work with Camera and ADAS, and we are talking about connected powertrains in the future.

當您談到電氣化以及身體會發生什麼，因此它對座椅的影響是一個很好的例子，我們談到了 DMS 如何與攝像頭和 ADAS 一起工作，我們正在談論未來的互聯動力系統。

So if you look across Magna, I think bringing things together, I believe, will give us an advantage as we have these conversations.

因此，如果您縱觀麥格納，我認為將這些東西放在一起，我相信，當我們進行這些對話時，將給我們帶來優勢。

Our next question comes from Itay Michaeli with Citigroup.

我們的下一個問題來自花旗集團的 Itay Michaeli。

Just first wanted to hold on 2 items in the quarter. First, I was hoping you could quantify the operating inefficiencies at the facility in Europe? And second, maybe talk a bit more about the seating margin. It looks like you're expecting that to get back to maybe mid-4% in the second half. I hope you could kind of talk about the quarter and the bridge there for the second half of the year?

剛開始想在本季度持有 2 件商品。首先，我希望你能量化歐洲工廠的運營效率低下？其次，也許多談談座位邊際。看起來你預計下半年可能會回到 4% 左右。我希望你能談談下半年的季度和橋樑？

I think, Pat, you can talk a little bit about the seating margins. But the best facility, I think, from a program change perspective, a complex product led to inefficiencies. In terms of scrap and therefore, started to impact, I would say, the capacity allocation and meeting all the customer expectations in terms of production. There's team in place. There is a very clear understanding of the issue, a very good plan.

我想，帕特，你可以談談座位邊距。但我認為，最好的設施，從程序變更的角度來看，複雜的產品會導致效率低下。在廢品方面，我會說，開始影響產能分配並滿足客戶在生產方面的所有期望。有隊伍到位。對這個問題有一個非常清晰的認識，一個非常好的計劃。

As you can imagine, if you look at any situation like this, it takes a little bit of time to get to full stability of the production. So that's really the impact. We are not getting into the specifics. But Itay, as you heard Pat talk about, I think it was about a 25 basis points impact on the Q2, and I would say about 20 basis points for the second half of '22.

可以想像，如果您看到這樣的任何情況，都需要一點時間才能完全穩定生產。所以這就是真正的影響。我們沒有進入細節。但是 Itay，正如您聽到 Pat 所說的那樣，我認為這對第二季度的影響約為 25 個基點，我會說 22 年下半年的影響約為 20 個基點。

And as far as the seating, when you look at the margins going forward, I think I would frame them more is that margins are stabilizing and returning to expectations. Our Seating business was disproportionately hit, I would say, in H1, and in particular in Q2 with the nature of the business with the stop/stop nature of what we see in the first half of the year and some of the negative mix where we have some higher vertical integration. So I think what we're seeing is we were disproportionately hitting Q2 and in H1. And as we move into H2, we're seeing that stabilize and returning to previous levels.

至於座位，當你看到未來的利潤率時，我想我會更多地認為利潤率正在穩定並回到預期。我想說的是，我們的座椅業務在上半年受到了不成比例的打擊，尤其是在第二季度，業務的性質與我們在上半年看到的停止/停止性質以及我們看到的一些負面組合有一些更高的垂直整合。所以我認為我們看到的是我們不成比例地達到了第二季度和上半年。隨著我們進入下半年，我們看到穩定並恢復到以前的水平。

It's a some normal launch cost in the first half, but that subsided in the back half as well.

這是上半年的一些正常啟動成本，但在後半部分也有所下降。

That's very helpful. And then just 2 other quick follow-ups. First, to what extent is for the second half margin rate a good baseline to think about 2023? I know there's a lot of noise with customer recoveries, but hoping you can maybe give us some help there. And then maybe for Swamy, hoping you can maybe update us on just overall booking and quoting activity, kind of what you're seeing in new business in the second quarter?

這很有幫助。然後只是另外 2 個快速跟進。首先，下半年利潤率在多大程度上是考慮 2023 年的良好基準？我知道客戶恢復有很多噪音，但希望你能在這方面給我們一些幫助。然後也許是 Swamy，希望你能更新我們關於整體預訂和報價活動的信息，就像你在第二季度的新業務中看到的那樣？

Yes. We're not going to get specifically into our '23 margins where if it's the cadence we go through, and it's not a new situation, but we're going to start our business planning process. But if you start doing the cadence of our earnings from H1 into H2, you do see an improvement in our earnings. So our exit margin should be more reflective go forward. I think the -- we were disproportionately hit in H1 on some of the commodities, and we're seeing improvements as we go forward.

是的。我們不會專門討論我們 23 年的利潤率，如果這是我們經歷的節奏，這不是一個新情況，但我們將開始我們的業務規劃流程。但是，如果您開始按照我們從 H1 到 H2 的收益的節奏進行計算，您確實會看到我們的收益有所改善。因此，我們的退出邊際應該更具反射性。我認為 - 我們在上半年的一些商品上受到了不成比例的打擊，隨著我們的前進，我們看到了進步。

Yes. I think the second part of the question that you asked in terms of bookings. We kind of look at the overall year plan, and there is, I would call it, lumpiness sometimes on the decision-making process it. But if you sit and look at today where we are, I would say we are pretty much in line with the plan and doing well and feel comfortable that will track to the plan, if not better, I would say, sitting where we are right now.

是的。我認為您在預訂方面提出的問題的第二部分。我們有點看整體年度計劃，我會稱之為，有時在決策過程中會出現混亂。但是，如果您坐下來看看我們今天所處的位置，我會說我們非常符合計劃並且做得很好並且感覺很舒服，這將跟踪計劃，如果不是更好，我會說，坐在我們正確的地方現在。

Our next question comes from Peter Sklar with the BMO Capital Markets.

我們的下一個問題來自 BMO 資本市場的 Peter Sklar。

Pat, a question for you. In the last 2 quarters, you've given us an update on the magnitude of the unrecoverable incremental costs. I believe your last update was $565 million on an annual basis. Now there seems to be some puts and takes listening to the discussion. This morning, it sounds like you do -- you have had some successful commercial settlements with your customers. It sounds like commodity costs are easing somewhat. I'm just wondering if you can give us an update on that number.

帕特，問你一個問題。在過去兩個季度中，您向我們提供了有關不可收回增量成本規模的最新信息。我相信你的上一次更新是每年 5.65 億美元。現在似乎有一些 put 和 take 來聽取討論。今天早上，聽起來像你——你已經和你的客戶達成了一些成功的商業和解。聽起來大宗商品成本有所緩和。我只是想知道您是否可以向我們提供有關該號碼的最新信息。

Yes. The number hasn't really moved, Peter. I think to your point, there has been some puts and takes between the gross to net, but we're holding firm at the $565 million. If you remember, we started the year at $275 million. We saw some acceleration in April primarily driven by Russia's invasion of Ukraine, driving a lot of energy costs throughout the European continent. So when you put all together, where we stand today, as you said, there's some puts and takes, but we're holding up to $565 million. So I think some of that stability is coming in.

是的。彼得，這個數字並沒有真正改變。我認為就您的觀點而言，總收入與淨收入之間存在一些看跌期權，但我們仍保持在 5.65 億美元的水平。如果你還記得，我們年初的收入是 2.75 億美元。我們在 4 月份看到了一些加速，主要是由於俄羅斯入侵烏克蘭，推動了整個歐洲大陸的大量能源成本。因此，當您將所有這些放在一起時，正如您所說，我們今天所處的位置有一些看跌期權，但我們持有的金額高達 5.65 億美元。所以我認為一些穩定性正在到來。

Okay. And then my next question is I believe it was just over $400 million of impairment charges you took during the quarter. Is the lion's share of that impairment of the Russian assets?

好的。然後我的下一個問題是，我相信您在本季度支付的減值費用剛剛超過 4 億美元。是俄羅斯資產減值的最大份額嗎？

Exactly, Peter. So when you break down the other expense, there's, like you said, just over $400 million in a 4.25 roughly. And of that $4.25 million, $50 million of it relates to mark-to-market on warrants and other private public entity securities. But the bulk of it does relate to the Russian impairment, which was $376 million. And effectively, what we've done, Peter, is given the accounting rules and our ability to generate cash flow out of that market, we've impaired it. We fully impaired the assets other than the cash balances, which we're not able to do under accounting standards.

沒錯，彼得。因此，當您分解其他費用時，就像您說的那樣，在 4.25 中大約有 4 億多美元。在這 425 萬美元中，其中 5000 萬美元與認股權證和其他私人公共實體證券的市值計價有關。但其中大部分確實與俄羅斯的減值有關，即 3.76 億美元。實際上，我們所做的，彼得，被賦予了會計規則和我們從那個市場產生現金流的能力，我們已經削弱了它。我們完全減值了除現金餘額以外的資產，根據會計準則我們無法做到這一點。

Okay. And Pat, when you say fully impaired, you mean it's impaired to 0, so we won't see that in future quarters?

好的。帕特，當你說完全受損時，你的意思是受損到 0，所以我們不會在未來幾個季度看到這種情況？

Exactly. Other than the...

確切地。除了...

Okay. And then my last question -- and then my last question for the management team. I'm just wondering if you could give some flavor around the performance of the Power & Vision. There was no revenue growth. Your margins deteriorated year-over-year, I think, from about down to 3%-ish. And I thought you might have had some growth there and improvement your ADAS programs come on. So I'm wondering if you could just talk a little bit about what's unfolding in that segment?

好的。然後是我的最後一個問題——然後是我對管理團隊的最後一個問題。我只是想知道您是否可以對 Power & Vision 的性能有所了解。收入沒有增長。我認為，您的利潤率同比下降，從大約下降到 3% 左右。而且我認為您可能在那裡取得了一些增長，並改進了您的 ADAS 程序。所以我想知道你是否可以談談那部分正在發生的事情？

I can start, and I think Swamy can jump in as well. When you break the numbers down, Peter, and you think about what's happening in the industry, we talk a lot about higher input costs, whether it's inflation and whatnot. This group is disproportionately hit in that space because they are exposed much more to the chip space. And they have also -- the other issue or the fact is that they have more of a European footprint.

我可以開始，我認為 Swamy 也可以加入。彼得，當您分解數字並考慮行業中正在發生的事情時，我們經常談論更高的投入成本，無論是通貨膨脹還是諸如此類。這個群體在該領域受到的打擊不成比例，因為他們更多地暴露於芯片領域。他們還有——另一個問題或事實是他們有更多的歐洲足跡。

So when you think about what's driving our $565 million relative to the size of this group, there's a higher amount of that -- those costs into this area. So when you look year-over-year, we're down 380 basis points. Substantially, all of that decrease is inflation type items.

因此，當您考慮相對於這個群體的規模而言，是什麼推動了我們 5.65 億美元的投資，其中的金額更高——這些成本進入了這個領域。因此，當您查看同比時，我們下降了 380 個基點。基本上，所有這些減少都是通貨膨脹類型的項目。

Okay. And there's no revenue growth. I thought some of your ADAS programs would be ramping by this time.

好的。而且沒有收入增長。我以為你的一些 ADAS 程序到這個時候會越來越多。

Yes. I think the ADAS program ramp is a slow ramp as we start going into the launch of the programs you might be talking, Peter. But generally, overall from the perspective of ADAS or powertrain operationally as well as, call it, the general health and the booking traction, we feel good in terms of the plan that we talked about in the Investor Day or in the previous quarters.

是的。我認為隨著我們開始啟動您可能正在談論的程序，ADAS 程序坡道是一個緩慢的坡道，彼得。但總的來說，從 ADAS 或動力總成的運營角度來看，以及總體健康狀況和預訂牽引力，我們對我們在投資者日或前幾個季度談到的計劃感覺良好。

And we're going to see some of that growth that's going to come through unconsolidated sales in our consolidated results...

我們將在我們的綜合業績中看到一些通過非綜合銷售來實現的增長......

Meaning it's in the equity line?

意思是它在權益線？

Yes, correct.

是，對的。

Correct.

正確的。

Our next question comes from Chris McNally with Evercore.

我們的下一個問題來自 Evercore 的 Chris McNally。

I was wondering if we could follow up on the $565 million headwind inflation for the year. Is it possible to broadly bucket, in broad percentage terms, how much are hard to recover, hard to quantify? You probably it's going to take more like 12 to 18 months for things that are or more direct raw material-related just not covered by pass-throughs. Because I just imagine things like utility and transport, it's going to take longer because we're in sort of new territory. Any sort of way to bucket so we can just have an idea of how those recoveries would work would be super helpful?

我想知道我們是否可以跟進今年 5.65 億美元的逆風通脹。是否有可能以廣泛的百分比來廣泛地計算有多少難以恢復、難以量化？您可能需要 12 到 18 個月的時間來處理那些與原材料直接相關的或更直接的原材料相關的事情，而這些事情並沒有被通過傳遞所涵蓋。因為我只是想像公用事業和運輸之類的東西，所以這將需要更長的時間，因為我們處於某種新的領域。任何一種存儲方法，以便我們可以了解這些恢復將如何工作，這會非常有幫助嗎？

Chris, I wish I could give you the granularity. But you're kind of looking at our assumptions. And if you look at the estimate last quarter year-over-year, I would say that net input costs for '22 was the mention -- the number you mentioned, the $465 million, obviously, right? Some amounts have changed. And as I mentioned, our discussions with the customers are ongoing. We've had some success -- and we are not even looking at just '22, right? We got to look at some of the costs incurred in the past. We're going to look at how to carry forward these discussions into possible continuing effects in '23 and beyond. So it's kind of a complex equation trying to figure out how best to address this.

克里斯，我希望我能給你粒度。但你有點看我們的假設。如果你看一下上個季度的同比估計，我想說的是 22 年的淨投入成本——你提到的數字，顯然是 4.65 億美元，對嗎？一些金額發生了變化。正如我所提到的，我們與客戶的討論正在進行中。我們已經取得了一些成功——我們甚至不只是在看 22 年，對吧？我們必須看看過去發生的一些成本。我們將研究如何將這些討論推進到 23 年及以後可能產生的持續影響。所以這是一個複雜的方程式，試圖找出如何最好地解決這個問題。

Obviously, the big topics, I would say, are the commodities, the semiconductors and other materials, there is energy -- and given the production conditions not being very stable, I would say, right, our primary goal is now how to keep supporting our customers. So there is premium wages and freight and other and so on. It's kind of really difficult to put a pin on each one of them and categorize this, Chris. But we very much focused on not just looking at the $465 million. And it's a continuing conversation going forward, $565 million, sorry, not $465 million, with various customers.

很明顯，大的話題，我會說，是大宗商品，半導體和其他材料，還有能源——考慮到生產條件不是很穩定，我會說，對，我們現在的主要目標是如何繼續支持我們的顧客。所以還有溢價工資和運費等等等等。克里斯，很難對每個人都進行分類並對其進行分類。但我們非常關注的不僅僅是 4.65 億美元。這是一個持續的對話，5.65 億美元，對不起，不是 4.65 億美元，與各種客戶。

No, that's very helpful, Swamy. And again, it's more of a question of the high level for the -- how Magna is thinking about going back to the OEMs through these conversations. I guess the other way we could think about it is in February, you gave a guide for 2024, obviously, volume dependent, 8.1% to 8.6% margin. Over the next couple of months, you incur another $200 million in sort of extraordinary costs due to the war. The question is, do you think if we got back to that volume level, we have over the next 2 years, the ability to make up that $200 million, so that broadly speaking, and obviously, you're going to give an updated guide, that you remain on target for 2024 volume dependent?

不，這很有幫助，斯瓦米。再說一次，這更像是一個高層次的問題——麥格納如何考慮通過這些對話回到原始設備製造商那裡。我想我們可以考慮的另一種方式是在 2 月，你給出了 2024 年的指導，顯然，取決於數量，8.1% 到 8.6% 的利潤率。在接下來的幾個月裡，由於戰爭，你又要承擔 2 億美元的特殊費用。問題是，你認為如果我們回到那個數量水平，我們有能力在未來 2 年內彌補 2 億美元，所以從廣義上講，很明顯，你會給出一個更新的指南，您是否仍能實現 2024 年產量的目標？

So Pat, you can jump in. But I think we talked about, Chris, that's exactly what we kicked off as a normal annual business planning process right now, and we go kind of bottoms up, right? And if you look at the last 3 years -- 3 months, the volumes have changed a few times, right? And there's certain -- uncertainty still. So we look at the volumes. But broadly speaking, right, you got to consider the current economic conditions and the recovery discussions that we are having, some of it -- it comes in various forms, right, whether it's banks or productivity improvements and businesses and so on and so forth.

所以帕特，你可以加入。但我想我們談到了，克里斯，這正是我們現在作為正常的年度業務計劃流程開始的，我們從下往上走，對嗎？如果你看看過去 3 年—— 3 個月，數量已經改變了幾次，對吧？並且仍然存在某些不確定性。所以我們看卷。但從廣義上講，是的，你必須考慮當前的經濟狀況和我們正在進行的複蘇討論，其中一些 - 它以各種形式出現，對，無論是銀行還是生產力提高和業務等等.

I think the intent would be to take all of that as a best guess. I shouldn't say best guess, the best effort to put things together, and that's what will help us come to the guidance when we come to February of '23. But we have to take all of this inflation and what we end up at the end of the year with our conversations or discussions with customers, all of this will play a role. I don't know, Pat, do you want to add something?

我認為其目的是將所有這些作為最佳猜測。我不應該說最好的猜測，最好的努力將事情放在一起，這將有助於我們在 23 年 2 月獲得指導。但是我們必須承擔所有這些通貨膨脹以及我們在年底與客戶的對話或討論的結果，所有這些都將發揮作用。我不知道，帕特，你想補充點什麼嗎？

Yes. The only thing I want to add, Chris, it's not a linear calculation, right? So it's not you just carry these numbers forward. Part of the discussions we have with our customers is not just looking at '22 and asking for a check to recover. So what we're looking at is multiple factors. You're looking at PO changes, which will continue. The other factor we look at is do we have an ability to pass that cost through to the customer via customer programs that we're derisking our bonds. And some of that derisking strategy, you're pushing it through and you're effectively pushing your cost up to the customer. And it allows us to focus on what we're good at, which is manufacturing. And so we look at derisking strategies, whether it's on energy, materials.

是的。我唯一想補充的是，克里斯，這不是線性計算，對吧？因此，您不只是將這些數字向前推進。我們與客戶進行的部分討論不僅僅是查看 22 年並要求支票恢復。因此，我們正在研究的是多種因素。您正在查看 PO 更改，這將繼續。我們關注的另一個因素是我們是否有能力通過我們正在降低債券風險的客戶計劃將成本轉嫁給客戶。而其中一些降低風險的策略，你正在推動它，你正在有效地將成本推高給客戶。它使我們能夠專注於我們擅長的領域，即製造。因此，我們研究了降低風險的策略，無論是在能源、材料方面。

And just to clarify on your first -- when we started this conversation, when you think about the pass-through costs, we have significant costs -- or the commodity costs that are on pass-through programs that are already -- where the cost flow directly to the customer. So when you look at changes on the price of steel, if we're on a customer resale, we're not exposed in that area. So I apologize for the long answer, but that's it's a very complicated influx...

只是為了澄清你的第一個 - 當我們開始這個對話時，當你考慮轉嫁成本時，我們有很大的成本 - 或者已經存在的轉嫁計劃的商品成本 - 其中成本直接流向客戶。因此，當您查看鋼鐵價格的變化時，如果我們進行客戶轉售，我們不會在該領域受到影響。所以我為冗長的答案道歉，但這是一個非常複雜的湧入......

I know it's a tough question. .

我知道這是一個棘手的問題。 .

Our next question comes from Mark Delaney with Goldman Sachs.

我們的下一個問題來自高盛的 Mark Delaney。

First one is to better understand the full year top line outlook. You've left your global production assumptions unchanged, but you did pick up the full year revenue guidance even though I think there's some FX headwinds there. So maybe you could talk a little bit more on what's leading to the slightly higher revenue view despite the unchanged production outlook?

第一個是更好地了解全年營收前景。你保持全球生產假設不變，但你確實獲得了全年收入指導，儘管我認為那裡存在一些外匯逆風。因此，儘管生產前景沒有變化，也許您可以多談談導致收入略高的原因是什麼？

Mark. I think we break down our volume mix. So part of the win actually has happened in Q2. So we outperformed in Q2, and I think we can get a chance to go to the MD&A. But we're seeing a couple of things that's driving that. We have -- you think about we have positive mix. So when you look at some of the mix on the volume side of it, we're seeing positive mix in Q2, but also continuing out through the balance of the year. That's really just program volumes.

標記。我認為我們分解了我們的交易量組合。所以部分勝利實際上發生在第二季度。所以我們在第二季度表現出色，我認為我們可以有機會去 MD&A。但我們看到有幾件事推動了這一點。我們有 - 你認為我們有積極的組合。因此，當您查看其數量方面的一些組合時，我們會看到第二季度的積極組合，但也會持續到今年的剩餘時間。這實際上只是程序量。

The second area where we have some positivity relates to content on the programs and mix within the various programs. And then finally, what we're also seeing is, we're talking about a lot of these recoveries. Some of them do come in the form of a PO adjustment, whether it's a past like a resale program or some of the recoveries receiving from our customers. Thus, all those factors are driving an increase in net content per vehicle, I would say. To your other point, you're right, we do have impact the other way on foreign exchange and that's primarily driven by the Europe declined significantly in the last 3 months.

我們有一些積極性的第二個領域與節目內容和各種節目的混合有關。最後，我們還看到的是，我們正在談論很多這些復甦。其中一些確實以採購訂單調整的形式出現，無論是轉售計劃之類的過去，還是從我們的客戶那裡收到的一些追回款。因此，我想說，所有這些因素都在推動每輛車的淨含量增加。在你的另一點上，你是對的，我們確實對外匯產生了相反的影響，這主要是由歐洲在過去 3 個月顯著下降推動的。

I think the mix is more impacting us in the back half of the year than we saw in Q2, a little bit positive in Q2, but more in the back half.

我認為這種組合在今年下半年對我們的影響比我們在第二季度看到的更大，在第二季度有點積極，但在下半年更多。

Got it. That's helpful. And then my second question is on Europe, and hoping you can share more details about what Magna is seeing in Europe related to potential gas and energy shortages. Maybe you can speak to what Magna and perhaps the industry more broadly are doing to potentially mitigate impacts? And to the extent natural gas flows do sustain at very low levels? Do you have any early assessments about how much production could be impacted in Europe?

知道了。這很有幫助。然後我的第二個問題是關於歐洲的，希望你能分享更多關於麥格納在歐洲看到的與潛在的天然氣和能源短缺有關的細節。也許您可以談談麥格納以及更廣泛的行業正在採取哪些措施來減輕影響？在某種程度上，天然氣流量確實維持在非常低的水平？您是否對歐洲的生產可能受到影響有任何早期評估？

Yes. I think it will be very difficult in these conditions to have an assumption of what the production impact would be given the fluidity of the situation there. But whether it was COVID or whether it was chip shutdowns, we are reacting to a, call it, a very volatile situation, right? But whether it was the sustainability efforts that we have taken up and looking at optimizing energy, how do we plan all of these things come into play and hopefully help us in thinking through the energy part of it.

是的。我認為在這些條件下，很難假設鑑於那裡情況的流動性會對生產產生什麼影響。但是，無論是 COVID 還是芯片關閉，我們都在對一種非常不穩定的情況做出反應，對吧？但無論是我們已經採取的可持續發展努力並著眼於優化能源，我們如何計劃所有這些事情發揮作用，並希望幫助我們思考其中的能源部分。

To the extent possible, we have the contracts in place. But given the current state, we have to see what it might be. I think the energy crisis that we're talking about in Europe has a much larger impact beyond even automotive in Europe. I think the secondary effects could be far out reaching. Other than looking at the DNA of resilience and being agile and working with the customers, I don't know if there is a whole lot that could be done from an energy perspective.

在可能的情況下，我們已經簽訂了合同。但鑑於目前的狀態，我們必須看看它可能是什麼。我認為我們在歐洲談論的能源危機對歐洲的影響甚至超出了汽車行業。我認為次要影響可能是深遠的。除了著眼於彈性、敏捷和與客戶合作的 DNA 之外，我不知道從能源的角度來看是否可以做很多事情。

Our next question comes from Joseph Spak with RBC.

我們的下一個問題來自 RBC 的 Joseph Spak。

Sorry, I just to sort of go back to some of the change in guidance. I understand you think mix in CPV and some of the recoveries are better on the top line. But then you sort of you sort of still kept this $565 million of headwinds, which I think was a net number, right? So I guess the implication would be that maybe you also raised your gross commodities, and we are starting to see some falling there. So can you just help me understand exactly -- I understand there's a little bit of maybe a give and a take between sort of how you assumed some of those -- some of the netting of the gross headwind that was going to occur. But it's still -- I'm still having a little bit of trouble or difficulty sort of squaring some of your comments?

對不起，我只是想回到指導的一些變化。我了解您認為混合 CPV 和一些回收率在頂線上會更好。但是你有點仍然保持著這 5.65 億美元的逆風，我認為這是一個淨數字，對吧？所以我想這意味著也許你也提高了你的商品總額，我們開始看到一些下降。所以你能不能幫助我準確理解 - 我知道在你如何假設其中一些之間可能會有一些讓步 - 一些將發生的總逆風的淨額。但它仍然 - 我仍然有一點麻煩或困難，有點像平方你的一些評論？

Yes, I think you're right, Joe. I mean, we talked about puts and takes in the net number, some things went up. Some of those input costs went up whether be commodity otherwise. But some of our recovery expectations went up as well. So the net number did not change. But -- and I wouldn't say that's a huge number, but there's a little bit of incremental recoveries that's built into our plan. The bigger element, I think, is the program mix.

是的，我認為你是對的，喬。我的意思是，我們談到了淨值的投入和投入，有些事情上升了。其中一些投入成本上升了，否則就是商品。但我們的一些復甦預期也有所上升。所以淨數沒有變化。但是 - 我不會說這是一個巨大的數字，但是我們的計劃中包含了一些增量恢復。我認為，更大的元素是程序組合。

Okay. Do you think you can get to a better probably not all the way neutral, but to a better price cost equation by the end of the year?

好的。你認為到年底你可以得到一個更好的可能不是完全中性的，而是更好的價格成本方程嗎？

Yes. Joe, I think we continue, like I said, our discussions with your customers, right? When we talk about the $565 million, say, it's a planned number. Obviously, it's not the end all, right? We continue to push in all directions. And as Louis said, if we look at some of the recoveries that were already built in before we talked about the net $565 million number. And as they come to start to flow through the sales line, the cost of sales line, they remain kind of margin neutral.

是的。喬，我想我們會繼續，就像我說的，我們與你的客戶的討論，對吧？當我們談到 5.65 億美元時，比如說，這是一個計劃好的數字。顯然，這還沒有結束，對吧？我們繼續向各個方向推進。正如路易斯所說，如果我們看看在我們談論淨 5.65 億美元之前已經建立的一些恢復。隨著它們開始流經銷售線，即銷售線的成本，它們仍然保持利潤率中性。

Like I said, again, we are not just looking at '22. We are looking at recoveries in general and holistically, what could it mean to us as a business in the long term. As we are looking at new codes, we look at new economics. As part of these conversations, it's a multivariable equation, I should say that we are having conversations right now. So all I can say is we will be focused not tied to the $465 million number, but overall, how much more can we optimize and how do we optimize, right?

就像我說的那樣，我們不只是在看 22 年。我們正在從整體上和整體上看待復甦，從長遠來看，這對我們作為一家企業意味著什麼。當我們在研究新的代碼時，我們也在研究新的經濟學。作為這些對話的一部分，這是一個多變量方程，我應該說我們現在正在進行對話。所以我只能說，我們的重點不在於 4.65 億美元，而是總體而言，我們還能優化多少以及如何優化，對嗎？

Okay. Maybe just to go back to Europe and energy. And I understand like quantifying or potential impacts to your customers is pretty much impossible at this point. But like specifically with your Steyr business there, if you -- like how does it work contractually with your customers that you're making cars for if you have to -- if you have some higher energy costs there? Where does that get absorbed?

好的。也許只是為了回到歐洲和能源。而且我知道，目前幾乎不可能量化或對您的客戶產生潛在影響。但是，特別是與您在那裡的斯太爾業務一樣，如果您——比如它如何與你的客戶簽訂合同，如果你必須為你製造汽車——如果你在那裡有一些更高的能源成本？它在哪裡被吸收？

Joe. To be honest, it really varies depending on the contract that we have. So when you think about our Steyr business, it has some significant productions under a couple of contracts, and it really varies depending on which customer and which contracts we're working on. I think the vast majority of our contracts in Europe outside of Steyr would be primarily it's the economics of our responsibility, and that's fully reflected in the $565 million and the recoveries that we're targeting and were the recoveries that we have achieved already.. .

喬。老實說，它確實因我們擁有的合同而異。因此，當您考慮我們的 Steyr 業務時，它在幾份合同下有一些重要的產品，而且它確實因我們正在處理的客戶和合同而異。我認為我們在斯太爾以外的歐洲的絕大多數合同主要是我們責任的經濟性，這完全反映在 5.65 億美元和我們的目標回收以及我們已經實現的回收中。 .

Our next question comes from Colin Langan with Wells Fargo.

我們的下一個問題來自富國銀行的 Colin Langan。

Just wanted to follow up on the $565 million in input costs. Can you just remind us of the cadence through the year? How much was it again in Q1? And how much was it actually this quarter? .

只是想跟進 5.65 億美元的投入成本。你能提醒我們全年的節奏嗎？ Q1又是多少？這個季度實際上是多少？ .

Colin, it's Pat here. I can jump in as far as the cadence and if you have a follow on. But when we look at the breakdown of the $565 million, what we had experienced in the first quarter was about in the range of about $200 million just broadbrush, and we experienced the same in the second quarter. So when you think about the cadence going forward, we're not going to provide a split by quarter. But that's going to leave just under $200 million for the back half of the year on a year-over-year basis. So H2 of 2022 versus H2 of 2021.

科林，這裡是帕特。我可以跳到盡可能多的節奏，如果你有後續。但是，當我們查看 5.65 億美元的細分時，我們在第一季度所經歷的大約在大約 2 億美元的範圍內，而我們在第二季度也經歷了同樣的情況。因此，當您考慮前進的節奏時，我們不會按季度提供拆分。但這將在今年下半年與去年同期相比僅剩下不到 2 億美元。因此，2022 年下半年與 2021 年下半年。

Got it. Okay. And I think that sort of helps explain my second question. So if I look at the midpoint of guidance, it looks like sales are up just 2% first half to second half, but about a 30% EBIT. So it has a pretty large contribution on that. The biggest delta is going to be much lower input cost headwinds. Is that really driving that high contribution on sales?

知道了。好的。我認為這有助於解釋我的第二個問題。因此，如果我查看指導的中點，看起來上半年到下半年的銷售額僅增長 2%，但息稅前利潤約為 30%。所以它對此有相當大的貢獻。最大的變化將是低得多的投入成本逆風。這真的推動了對銷售的高貢獻嗎？

Recoveries. Recoveries again input cost.

恢復。再次收回投入成本。

Recoveries -- on those input costs. All right. Got it. Okay. And then why the 2% -- well, I guess, year-over-year in first half, second half get a little wonky, but why just 2% growth considering I think IHS is up 9% for first half, second half. Is that just really FX starting to dip into sales?

回收——關於這些投入成本。好的。知道了。好的。然後為什麼 2%——嗯，我猜，上半年和下半年的同比增長有點不穩定，但是考慮到我認為 IHS 上半年和下半年增長了 9%，為什麼只有 2% 的增長。這真的只是外匯開始進入銷售嗎？

Yes, I think that's the biggest driver of it. The euro did decline significantly from our previous estimate. So what you're seeing is, as I said earlier, you have an increase in production activity in local currencies and it's being deteriorated or reduced that benefit because of foreign exchange translation.

是的，我認為這是最大的驅動力。與我們之前的估計相比，歐元確實大幅下跌。因此，正如我之前所說，您所看到的是，以當地貨幣計算的生產活動有所增加，並且由於外匯折算，這種收益正在惡化或減少。

Yes, I don't think when we looked at it, we were that far off IHS in the region. So we're pretty much in line. It's more just currency impact.

是的，我認為當我們查看它時，我們與該地區的 IHS 相距甚遠。所以我們幾乎是一致的。更多的是貨幣影響。

Our next question comes from James Picariello with PNB Paribas.

我們的下一個問題來自 PNB Paribas 的 James Picariello。

Just on electrification and the LG powertrain and Hasco JVs. Can you just talk about Magna's progress in general, the major programs you have in the pipeline and just how things are progressing relative to the multiyear sales ramp you have targeted over the next few years? I believe the LG JV broke ground on a facility in Mexico back in April. Just wondering what the update is there on timing?

就電氣化以及 LG 動力總成和 Hasco 合資企業而言。您能否簡單談談麥格納的總體進展、您正在籌備的主要項目以及相對於您在未來幾年內設定的多年銷售增長目標的進展情況？我相信 LG 合資公司早在 4 月就在墨西哥的一家工廠破土動工。只是想知道時間上有什麼更新？

I guess the short answer would be progressing well, but I'll give some color. When -- I think if you go back and look at it, we looked at the 2019 as a basis for our LG-Magna joint venture and Kinotalked about a 50% CAGR over the 3-year period at that time. I would say we are progressing well as we continue to gain traction and put plants into implementation. The result was the breaking ground in Mexico for the facility there.

我想簡短的答案會進展順利，但我會給出一些顏色。什麼時候——我想如果你回頭看看，我們將 2019 年視為我們 LG-Magna 合資企業的基礎，Kino 談到當時 3 年的複合年增長率為 50%。我想說，隨著我們繼續獲得牽引力並將工廠投入實施，我們進展順利。結果是墨西哥在那裡的設施破土動工。

And if you refer to our investment -- investor deck slides and so on in our past commentary, we kind of talked roughly about $4 billion in electrification sales looking forward. And we came back in our Investor Day and said we opted to $4.5 billion now because we continue to execute on our plans and see further traction, right? You talked a little bit about our JV and our wholly owned business, I think. I would say we continue to launch the programs that we have talked about in the past, and we also continue to gain traction in looking at new business from our customers. So all in all, I would say, according to the plan that we communicated, we are in line or beating the discussions we have had a year ago.

如果你提到我們的投資——我們過去評論中的投資者幻燈片等，我們大概談到了大約 40 億美元的未來電氣化銷售額。我們在投資者日回來說我們現在選擇了 45 億美元，因為我們繼續執行我們的計劃並看到進一步的牽引力，對嗎？我想你談到了我們的合資企業和全資企業。我想說，我們將繼續推出我們過去討論過的計劃，並且我們也繼續從客戶那裡獲得新業務的吸引力。所以總而言之，我想說，根據我們溝通的計劃，我們符合或擊敗我們一年前的討論。

Got it. That's great. And I know you touched on this aspect, but can you share your thoughts on just what the contingency plans might be for the energy rationing possibilities in Europe? And just have Magna is positioned from that standpoint?

知道了。那太棒了。我知道你談到了這方面，但你能分享你對歐洲能源配給可能性的應急計劃的看法嗎？只是讓麥格納從這個角度定位？

I wish we could have a say in the policy implementation of energy rationing. But I would say it is a lot of discussions with our customers because not having one part, it's not going to get the car made. So I think there is a cohesive effort, I would say, from the customer and the entire supply base to see how we can keep the pipeline full and no pun intended benefit pipeline.

我希望我們能在能源配給的政策實施中擁有發言權。但我會說這是與我們的客戶進行大量討論，因為沒有一個零件，就無法製造出汽車。所以我認為，我想說，來自客戶和整個供應基地的一致努力，看看我們如何才能保持管道完整，並且沒有雙關語預期的利益管道。

So other than that, I mean, honestly, there is no clear answer to this, right? We're all looking to see how we can stay resilient and function through all of it. It's just not a company solution. I think it's got to be an industry-wide solution for this one.

所以除此之外，我的意思是，老實說，對此沒有明確的答案，對吧？我們都在尋找如何在這一切中保持彈性並發揮作用。這不是公司的解決方案。我認為這必須是一個全行業的解決方案。

Our next question is from Rod Lache with Wolfe Research.

我們的下一個問題來自 Wolfe Research 的 Rod Lache。

Just -- first of all, just one clarification. So on the quarter, the $200 million year-over-year decline in EBIT. I see material up by 300 basis points as a percentage of sales. And you commented on the $200 million impact of nonrecovered costs as basically the reason for the decline. But I'm not sure I'm seeing any contribution on the $800 million or so of organic sales growth. And just to clarify, is that largely because that growth was actually reimbursement for the gross impact of the cost that you're incurring?

只是——首先，只是一個澄清。因此，在本季度，息稅前利潤同比下降了 2 億美元。我認為材料佔銷售額的百分比增加了 300 個基點。您評論說未收回成本的 2 億美元影響基本上是下降的原因。但我不確定我是否看到對 8 億美元左右的有機銷售增長有任何貢獻。澄清一下，這主要是因為這種增長實際上是對您所承擔的成本的總體影響的補償嗎？

Ron, it's Pat. I think there's quite a few puts and takes, but to quickly answer your question, we do see a pull-through on our sales. So there is a boat like mentioned, you got to back out the FX. So if we start at the top, we have some headwinds on FX, right? So that's $600 million plus on sales. And when you back out, I would -- you know how translation work, there's not much pull-through on that number. You're basically pulling throughout the average FX margin rate by the region.

羅恩，是帕特。我認為有很多看跌期權，但為了快速回答您的問題，我們確實看到了我們的銷售額。所以有一艘像提到的船，你必須退出外匯。因此，如果我們從頂部開始，我們在 FX 上會遇到一些阻力，對吧？所以這是6億美元加上銷售額。當你退出時，我會 - 你知道翻譯是如何工作的，這個數字並沒有太多的拉動。您基本上是在拉動該地區的平均外匯保證金率。

So you back off the FX. So we do have positive sales activity, again, I would say, higher than the $800 million, and it does have a positive pull-through more in the range where we've experienced in the past. The other thing to consider is our operations in Russia on a year-over-year basis. So we guided previously that we have about in the range of about $400 million of sales in the Russian market. So if you just take that by quarter, you're talking roughly another $100 million. And the pull-through on that would not be at our standard pull-through because we've effectively idled all those operations. So you're decrementals there are pretty significant.

所以你退出外匯。因此，我們確實有積極的銷售活動，我想說，再次高於 8 億美元，並且在我們過去經歷的範圍內確實有更多的積極拉動。另一件需要考慮的事情是我們在俄羅斯的業務同比增長。因此，我們之前的指導是，我們在俄羅斯市場的銷售額約為 4 億美元。因此，如果您僅按季度計算，則大約是另外 1 億美元。因為我們已經有效地閒置了所有這些操作，所以在這方面的拉動不會是我們的標準拉動。所以你是遞減的，有很大的意義。

Again, we talked about our 25 basis point impact on our operations in Germany. That's continuing. And as I said, Swamy mentioned earlier, that's -- we expect that to continue to go forward range about 20 basis points. Then you have some other puts and takes. When you put it all together, very long answer, Rod, and I apologize, but we are seeing pull-through on our incremental sales to and to your very specific question.

再次，我們談到了 25 個基點對我們在德國的業務的影響。那還在繼續。正如我所說，斯瓦米之前提到的，那是 - 我們預計它將繼續前進約 20 個基點的範圍。然後你有一些其他的看跌期權。當您將所有內容放在一起時，回答很長，羅德，我很抱歉，但是我們看到我們的增量銷售對您非常具體的問題有所幫助。

To your point, we're doing -- there's index contracts and we're getting a price adjustment. It's really -- it's margin neutral, right? We're adding a higher cost of sales, higher sales. It's margin neutral, and that drags the margin down a little bit. And that's sort impact of quarter end this quarter.

就你的觀點而言，我們正在做——有指數合約，我們正在進行價格調整。真的 - 它是利潤中性的，對吧？我們增加了更高的銷售成本，更高的銷售額。它是邊距中性的，這會將邊距拉低一點。這就是本季度末季度的影響。

So what's the gross impact or the -- when you're talking about $200 million of nonreimbursed expense, there was a reimbursement component. Can you just maybe give us a sense of how large that is? How of your growth over market is coming from the reimbursement of higher costs?

那麼總體影響是什麼，或者 - 當您談論 2 億美元的未報銷費用時，有一個報銷部分。你能不能讓我們知道它有多大？您的市場增長如何來自更高成本的報銷？

The growth of our market year-to-date, the majority of that is just pure content growth, but there is a portion that's related to recovery, whether it be index type contracts or other recoveries. In the quarter, we had, let's say, a higher proportion of it was related to recoveries. So we had just pure organic growth related to mix and content growth, et cetera, also in the numbers. We're not disclosing the gross numbers. We've only been talked about the net numbers on the net input costs.

我們市場年初至今的增長，其中大部分只是純粹的內容增長，但也有一部分與復蘇有關，無論是指數型合約還是其他復蘇。在本季度，比方說，我們有更高的比例與恢復有關。所以我們只有與混合和內容增長等相關的純有機增長，在數字上也是如此。我們沒有透露總數字。我們只討論過淨投入成本的淨數字。

Okay. Just 2 other things. So Ford on their earnings call mentioned that they had -- they have 550 suppliers at risk in Europe in the event of rationing and that they're building a 30-day buffer stock. Are you hearing anything along those lines with regard to building up additional inventory from your customers? And then lastly, Swamy, on your prepared remarks, you talked a little bit about going beyond the supply of manufacturer vehicles. Could you just elaborate what you were referring to?

好的。只是另外兩件事。所以福特在他們的財報電話會議上提到他們有——如果配給，他們在歐洲有 550 家供應商處於風險之中，並且他們正在建立一個 30 天的緩衝庫存。您是否聽說過有關從客戶那裡建立額外庫存的任何消息？最後，斯瓦米，在你準備好的發言中，你談到了超越製造商車輛供應的問題。你能詳細說明你指的是什麼嗎？

Yes, absolutely, Rod. I think when we talk about energy rationing, I talked about it, we are seeing various initiatives, I should say, across OEMs and to see how we can as much possible as you can, right, given the condition there to figure how to protect production, whether it's inventories or buildups and so on. I wouldn't say there is one thing that we are seeing across the board. There is a mix of everything. But definitely, that is very much in focus.

是的，絕對是，羅德。我認為當我們談論能源配給時，我談到了它，我們看到了各種舉措，我應該說，跨原始設備製造商，看看我們如何盡可能多地，對，考慮到那裡的條件如何保護生產，無論是庫存還是積累等等。我不會說我們全面看到了一件事。一切都是混合的。但毫無疑問，這是非常重要的。

The second point, when I talked about beyond it, you heard me talk about mobility ecosystem, how can we leverage Magna overall from a system perspective beyond our core businesses, parts and system supply and contract vehicle manufacturing, whether it is delivery logistics, looking at what Magna can bring in as platforms, whether it's last mile, whether it's micro mobility, possibly from an automotive infrastructure-related topics, whether it's charging stations and so on. It's in a preliminary evaluation, and we continue to have several discussions on that topic. But I would say it's pretty preliminary. That's what I meant by the comment in my prepared statement.

第二點，當我談到超越它時，你聽到我談到移動生態系統，我們如何從系統角度全面利用麥格納，超越我們的核心業務、零部件和系統供應以及合同車輛製造，無論是交付物流、尋找麥格納可以作為平台帶來什麼，是否是最後一英里，是否是微型移動性，可能來自與汽車基礎設施相關的主題，是否是充電站等等。它處於初步評估階段，我們將繼續就該主題進行多次討論。但我會說這是相當初步的。這就是我在準備好的聲明中的評論的意思。

And our final question comes from Michael Glen with Raymond James.

我們的最後一個問題來自 Michael Glen 和 Raymond James。

Maybe just to start on M&A environment in terms of what you're seeing? Are you seeing an uptick in opportunities present themselves? Like is there anything looking interesting to you at this point in time?

就你所看到的而言，也許只是從併購環境開始？您是否看到自己出現的機會有所增加？就像在這個時間點有什麼對你來說很有趣的事情？

I would say we continue to scan the M&A landscape more, I would say, in a very deliberate fashion, looking to see how from a tax perspective, addressing whether it's a technology customer, geographic footprint. That continues. I think in the initial comments to your question, I said, given the economic conditions, there might be opportunities that might come along and we are very attentive, I should say, and stay focused to see it. And we are in the industry. We are well known and they all come to the table. So I don't think our approach to M&A changes because of it, but we'll -- I would say, have here ear to the ground a little bit more.

我想說的是，我們會繼續以非常審慎的方式更多地審視併購領域，從稅收的角度來看如何解決它是否是技術客戶、地理足跡。這繼續。我認為在對您的問題的最初評論中，我說，鑑於經濟狀況，可能會有機會出現，我應該說，我們非常專心，並保持專注以觀察它。我們在這個行業。我們是眾所周知的，他們都來到了餐桌旁。所以我不認為我們的併購方法會因此而改變，但我們會 - 我會說，在這裡多聽一點。

And just maybe one on Europe. Going across the segments, with the Q1 results, I believe there was a comment indicating that body and exteriors, there was an impact to think about from rising energy prices and I think earlier in the call, indicated Power and Vision as well. Are those the 2 primary segments where you would see pressure on the rising energy and which segment sees more pressure?

或許只有一個在歐洲。縱觀第一季度的業績，我相信有評論表明，能源價格上漲會對車身和外部產生影響，我認為在電話會議的早些時候，也表明了力量和願景。在這兩個主要部分中，您會看到能量上升的壓力，而哪個部分的壓力更大？

I don't know whether it's a segment question, I think it will be more the process-related question, right, whether it's where you have energy-intensive processes, right, whether it's stamping or machining or molding and so on and so forth. So I think it would cut across. But given the nature of the product and the mix of the processes, I would say, the BES segment and powertrain would be high energy, utilizing processes in place. Given that logic, I would say your assumption is correct.

我不知道這是不是一個細分問題，我認為這將是更多與工藝相關的問題，對吧，你是否有能源密集型工藝，對，無論是沖壓還是機械加工還是成型等等等等.所以我認為它會跨越。但考慮到產品的性質和流程的組合，我想說，BES 部分和動力系統將是高能的，利用適當的流程。鑑於這種邏輯，我會說你的假設是正確的。

Mr. Kotagiri, I'll turn the call back to you for closing remarks.

Kotagiri 先生，我會把電話轉回給你，讓你做閉幕詞。

Thank you, and thanks, everyone, for listening in. As I said, the industry environment remains difficult, but we continue to demonstrate resilience while staying focused on our go-forward strategy. It's not just about today, but about the future. Hopefully, you've heard that in our message. I enjoy the rest of your day, and have a great weekend. Thank you. .

謝謝大家，感謝大家的聆聽。正如我所說，行業環境仍然艱難，但我們繼續展示韌性，同時專注於我們的前進戰略。這不僅僅是關於今天，而是關於未來。希望您在我們的信息中聽到了這一點。我很享受你剩下的時間，週末愉快。謝謝你。 .

That does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your lines.

這確實結束了今天的電話會議。我們感謝您的參與，並要求您斷開線路。