Magna International Inc (MGA) 2022 Q1 法說會逐字稿

Greetings, everyone, and welcome to the Q1 2022 Results Call. (Operator Instructions) Please note, today's call is being recorded, Friday, April 29, 2022. It is now with pleasure that I turn today's presentation over to Mr. Louis Tonelli, Vice President, Investor Relations. Please go ahead, sir.

大家好，歡迎參加 2022 年第一季度業績電話會議。 （操作員說明）請注意，今天的通話記錄在 2022 年 4 月 29 日星期五。現在我很高興將今天的演示文稿交給投資者關係副總裁 Louis Tonelli 先生。請繼續，先生。

Thanks, Bridget. Hello, everyone, and welcome to our conference call covering our Q1 '22 results. Joining me today are Swamy Kotagiri, Vince Galifi and Pat McCann. Yesterday, our Board of Directors met and approved our financial results for Q1 2022. We issued a press release this morning outlining our results.

謝謝，布里奇特。大家好，歡迎參加我們關於 22 年第一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 2022 年第一季度的財務業績。我們今天上午發布了一份新聞稿，概述了我們的業績。

You find the press release, today's conference call webcast, the slide presentations to go along with the call and our updated quarterly financial review all in the Investor Relations section of our website at magna.com.

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季度財務回顧。

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

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。有了這個，我會把它交給斯瓦米。

Thank you, Louis. Good morning, everyone. Let me start by saying that our thoughts go out to all those that are suffering as a result of the situation in Ukraine. Although we don't have facilities in Ukraine, we have the privilege of working with thousands of Ukrainian colleagues in our Magna operations around the world as well as those at our facilities in Russia who share the same values of human rights, diversity and inclusion.

謝謝你，路易斯。大家，早安。讓我首先說，我們對所有因烏克蘭局勢而受苦的人表示同情。雖然我們在烏克蘭沒有工廠，但我們有幸與麥格納在世界各地的業務中的數千名烏克蘭同事以及我們在俄羅斯的工廠中擁有相同人權、多樣性和包容性價值觀的同事合作。

We continue to operate under very difficult industry conditions, facing additional challenges that began this past quarter. Under the circumstances, we are pleased that our results outperformed our expectations. We continue to focus on operational excellence, cost controls and customer recoveries to mitigate the pressures we are facing. Our organic sales outgrew light vehicle production in the quarter. As a result of the worsening geopolitical and macroeconomic environment, we have lowered our outlook for 2022, reflecting reduced vehicle production assumptions, weaker expected currencies relative to the U.S. dollar and an expected further increase in input costs.

我們繼續在非常困難的行業條件下運營，面臨著上個季度開始的額外挑戰。在這種情況下，我們很高興我們的業績超出了我們的預期。我們繼續專注於卓越運營、成本控制和客戶恢復，以減輕我們面臨的壓力。我們本季度的有機銷售額超過了輕型汽車的產量。由於地緣政治和宏觀經濟環境惡化，我們下調了對 2022 年的展望，原因是汽車產量假設減少、預期貨幣相對於美元走弱以及預期投入成本將進一步增加。

As we look past this short-term turmoil, we continue to win business, and our portfolio positions us to continue driving sales growth over market as well as strong free cash flow generation. I'll briefly cover the current dynamics impacting the industry. We started the year anticipating continued supply constraints, particularly in semiconductors. We are expecting the constraints to remain throughout '22, but improve in the second half of the year relative to the first. Russia's invasion of Ukraine and measures taken by G7 countries in response had cascading economic effects. Substantially, all vehicle production in Russia has been idled. The industry is experiencing additional supply chain challenges, resulting in vehicle production suspensions, particularly in Europe. Global economic uncertainty has increased and input costs already at elevated levels have risen further.

當我們回顧這場短期動盪時，我們繼續贏得業務，我們的投資組合使我們能夠繼續推動市場銷售增長以及強勁的自由現金流產生。我將簡要介紹影響該行業的當前動態。今年年初，我們預計供應將持續受限，尤其是在半導體領域。我們預計限制因素將在整個 22 年保持不變，但相對於上半年而言，下半年會有所改善。俄羅斯入侵烏克蘭以及 G7 國家採取的應對措施產生了連鎖經濟影響。基本上，俄羅斯的所有汽車生產都處於閒置狀態。該行業正在經歷額外的供應鏈挑戰，導致汽車停產，尤其是在歐洲。全球經濟不確定性增加，已經處於較高水平的投入成本進一步上升。

In addition, China's Zero COVID policy in the face of rising cases have resulted in lockdowns in certain regions, impacting industry sales and production in the country. In terms of tailwinds, dealer vehicle inventories remain low, underlying auto demand is relatively strong and constrained by the tight supply and the industry megatrends, like electrification and driver assistance, continue to drive new business and growth opportunities for well-positioned suppliers.

此外，面對不斷上升的病例，中國的零疫情政策導致某些地區的封鎖，影響了該國的行業銷售和生產。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限制，電氣化和駕駛員輔助等行業大趨勢繼續為定位良好的供應商帶來新的業務和增長機會。

Our first quarter earnings came in better than our expectations, reflecting our focus on operations, even as the industry environment worsened as the quarter progressed. Relative to the first quarter of 2021, consolidated sales were $9.6 billion, down 5% compared to a 7% decline in global light vehicle production. On an organic basis, sales were only down 2%, representing 5% growth over market. EBIT margin declined 230 basis points to 5.3% substantially as a result of higher input costs. Our adjusted EPS fell to $1.28 for the quarter. And fresh cash flow was negative $99 million in Q1.

我們第一季度的收益好於我們的預期，這反映了我們對運營的關注，即使行業環境隨著季度的進展而惡化。相對於 2021 年第一季度，綜合銷售額為 96 億美元，與全球輕型汽車產量下降 7% 相比下降 5%。在有機基礎上，銷售額僅下降 2%，比市場增長 5%。由於投入成本增加，息稅前利潤率大幅下降 230 個基點至 5.3%。本季度調整後的每股收益降至 1.28 美元。第一季度的新現金流為負 9900 萬美元。

During the quarter, we repurchased 5.8 million shares using $383 million in cash, paid out another $113 million to shareholders in the form of dividends and used cash to redeem our senior Canadian debt. Pat will take you through the details of our revised '22 outlook later, but let me take you through the broad strokes.

在本季度，我們以 3.83 億美元現金回購了 580 萬股股票，以股息形式向股東支付了另外 1.13 億美元，並用現金贖回了我們的高級加拿大債務。 Pat 稍後將帶您了解我們修訂後的 22 年展望的詳細信息，但讓我帶您大致了解一下。

Our global vehicle production assumptions have been lowered, and we now expect an overall vehicle production increase of about 3% in 2022 compared to about 6% in our initial outlook in February. We have reduced our European vehicle production assumptions by 2.1 million units, of which 0.9 million is in Russia. At this point, we are assuming that the global OEMs will not produce in Russia for the remainder of '22. We have also reduced our vehicle production assumptions in North America and China for the balance of the year relative to our previous outlook.

我們已經下調了全球汽車產量假設，我們現在預計 2022 年整體汽車產量將增長約 3%，而我們在 2 月份的初步展望中約為 6%。我們將歐洲汽車產量假設降低了 210 萬輛，其中 90 萬輛在俄羅斯。在這一點上，我們假設全球 OEM 在 22 年剩餘時間內不會在俄羅斯生產。相對於我們之前的展望，我們還下調了今年餘下時間在北美和中國的汽車產量假設。

The impact of lower sales due to the lower production assumptions, together with assumed higher net input costs, has resulted in the lowering of our outlook for sales and earnings in '22. Despite our lowered outlook, we are continuing to invest for our future in the form of engineering and capital to support future growth. This is our life blood, and we have the balance sheet and cash flow to support these ongoing investments that will benefit Magna well into the future.

由於較低的生產假設以及假設較高的淨投入成本而導致的銷售額下降的影響，導致我們對 22 年的銷售和收益前景下調。儘管我們下調了前景，但我們將繼續以工程和資本的形式為我們的未來進行投資，以支持未來的增長。這是我們的命脈，我們擁有資產負債表和現金流來支持這些持續的投資，這些投資將使麥格納在未來受益匪淺。

Before passing the call over to Pat, I want to highlight 2 recognitions received by Magna, which I'm very proud of. We recently earned 6 2021 General Motors Supplier of the Year awards, the only supplier to achieve this in a single year, and we have done it in each of the past 3 years. GM also selected Magna to receive 2 overdrive awards for launch excellence and accelerating innovation. In addition, 4 Magna technologies have been named as finalists for the 2022 Automotive News PACE Awards. The 4 innovations, 2 for products and 2 for processes, are the most received by any company this year. We were also named as a finalist for a PACE pilot award. These recognitions reflect our ongoing focus on bringing innovations and operational excellence to our customers, both of which should contribute to our continued strong competitive position in the industry.

在將電話轉給 Pat 之前，我想強調一下 Magna 獲得的兩項認可，我對此感到非常自豪。我們最近獲得了 6 項 2021 年通用汽車年度供應商獎，這是唯一一家在一年內實現這一目標的供應商，而且我們在過去 3 年的每一年都做到了。通用汽車還選擇麥格納獲得兩項超速驅動獎，以表彰其卓越的發射和加速創新。此外，4 項麥格納技術已入圍 2022 年汽車新聞 PACE 獎的決賽選手。 4 項創新，2 項產品和 2 項流程，是今年所有公司接受最多的。我們還被提名為 PACE 飛行員獎的決賽選手。這些認可反映了我們一直致力於為客戶帶來創新和卓越運營，這兩者都應有助於我們在行業中持續保持強大的競爭地位。

Finally, we are hosting an investor event on May 10 at the M1 racetrack in Pontiac, Michigan. We will provide an update on progress in our go-forward strategy that was outlined last year. We will have on-road driving experiences and interactive displays of our latest technologies. You will have the opportunity to catch up with Magna's senior leaders, our first opportunity to do this live since 2020. I look forward to seeing many of you there for this great event. With that, I will hand it over to Pat to take you through the specifics on our financials. Pat?

最後，我們將於 5 月 10 日在密歇根州龐蒂亞克的 M1 賽道舉辦投資者活動。我們將提供有關去年概述的前進戰略的最新進展。我們將擁有最新技術的公路駕駛體驗和互動展示。您將有機會與麥格納的高級領導人見面，這是我們自 2020 年以來首次有機會現場直播。我期待與你們中的許多人一起參加這場盛大的活動。有了這個，我會把它交給帕特，帶你了解我們的財務細節。拍？

Thank you, Swamy, and good morning, everyone. First, I'll start with a detailed review of the quarter. I would like to reiterate Swamy's sentiment. We are facing tremendous industry headwinds, and our operations have done a great job managing through the challenges. Once the challenges subside, we should be well positioned to drive higher margins and free cash flow. Global vehicle production declined 7% in the quarter, primarily as a result of 16% lower volumes in Europe. Our consolidated sales were $9.6 billion, down 5% from the first quarter of 2021. The decrease was primarily due to lower global vehicle production and lower assembly volumes, the impact of foreign currency translation, net divestitures and customer price concessions. These were partially offset by the launch of new programs and price increases to recover certain higher input costs.

謝謝你，斯瓦米，大家早上好。首先，我將從對該季度的詳細回顧開始。我想重申斯瓦米的觀點。我們正面臨著巨大的行業逆風，我們的運營在應對挑戰方面做得很好。一旦挑戰消退，我們應該做好準備以推動更高的利潤率和自由現金流。本季度全球汽車產量下降 7%，主要是由於歐洲產量下降 16%。我們的綜合銷售額為 96 億美元，比 2021 年第一季度下降 5%。下降的主要原因是全球汽車產量下降和裝配量下降、外幣換算、淨資產剝離和客戶價格優惠的影響。這些被新計劃的推出和價格上漲部分抵消，以收回某些較高的投入成本。

On an organic basis, our sales fell 2% year-over-year for a 5% growth over market for the first quarter. Adjusted EBIT was $507 million, and adjusted EBIT margin declined 230 basis points to 5.3%, a strong result considering what we are facing. This compares to 7.6% in Q1 2021. The lower EBIT percent in the quarter was substantially due to higher input costs. Other items that negatively impacted EBIT percent were inefficiencies and other costs at certain underperforming divisions, higher electrification spending and lower equity income. These items were essentially offset by favorable commercial items, lower launch costs, employee profit sharing and incentive compensation costs and lower ADAS application engineering spend.

在有機基礎上，我們的銷售額同比下降 2%，第一季度比市場增長 5%。調整後息稅前利潤為 5.07 億美元，調整後息稅前利潤率下降 230 個基點至 5.3%，考慮到我們所面臨的情況，這是一個強勁的結果。相比之下，2021 年第一季度為 7.6%。本季度較低的息稅前利潤百分比主要是由於投入成本較高。其他對 EBIT 百分比產生負面影響的項目是某些表現不佳的部門的效率低下和其他成本、電氣化支出增加和股本收入減少。這些項目基本上被有利的商業項目、較低的啟動成本、員工利潤分享和激勵補償成本以及較低的 ADAS 應用工程支出所抵消。

Equity income was down $27 million year-over-year to $20 million in the quarter. The decline reflects increased electrification spending in our LG JV and reduced earnings on lower sales and other equity-accounted entities. Our adjusted effective income tax rate came in at 17.3%, in line with our Q1 expectations, but lower than Q1 last year. Net income attributable to Magna was $383 million compared to $566 million in Q1 2021, reflecting lower EBIT and higher interest expense and minority interest, partially offset by the lower tax rate.

本季度股票收入同比下降 2700 萬美元至 2000 萬美元。下降反映了我們 LG 合資企業的電氣化支出增加，以及銷售額下降和其他權益核算實體的收益減少。我們調整後的有效所得稅率為 17.3%，符合我們第一季度的預期，但低於去年第一季度。歸屬於麥格納的淨收入為 3.83 億美元，而 2021 年第一季度為 5.66 億美元，這反映了較低的息稅前利潤以及較高的利息費用和少數股東權益，部分被較低的稅率所抵消。

Diluted EPS was $1.28 compared to $1.86 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 share repurchases during and subsequent to Q1 2021.

稀釋後每股收益為 1.28 美元，而去年為 1.86 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 年第一季度及之後股票回購的影響。

I will now review our cash flows and investment activities. During the first quarter of 2022, we generated $749 million in cash from operations before changes in working capital and invested $569 million in operating assets and liabilities. Investment activities in the quarter included $238 million in fixed assets, a $64 million increase in investments, other assets and intangibles, and $2 million in public and private equity investments. Overall, free cash flow was negative $99 million in Q1. We also repurchased $383 million of our common shares, paid $133 million in dividends and early redeemed our Canadian bonds.

我現在將回顧我們的現金流和投資活動。在 2022 年第一季度，我們在營運資本變化之前從運營中產生了 7.49 億美元的現金，並在運營資產和負債方面投資了 5.69 億美元。本季度的投資活動包括 2.38 億美元的固定資產、6400 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投資。總體而言，第一季度的自由現金流為負 9900 萬美元。我們還回購了 3.83 億美元的普通股，支付了 1.33 億美元的股息，並提前贖回了我們的加拿大債券。

At the end of the first quarter, our adjusted EBIT to adjusted EBITDA was 1.55x, and our liquidity remains strong at $5.5 billion, including almost $2 billion in cash.

在第一季度末，我們調整後的 EBIT 與調整後的 EBITDA 為 1.55 倍，我們的流動性仍然強勁，為 55 億美元，其中包括近 20 億美元的現金。

Next, I will cover our outlook. As Swamy covered earlier, our outlook reflects lower expected vehicle production in both North America and Europe. Our assumption for production in China is higher than our previous expectations for 2022, but lower for the balance of the year. We assume exchange rates in our outlook will approximate recent rates, therefore, we now expect a weaker euro and Canadian dollar for 2022 relative to our previous outlook. We have reduced our ranges for segment and consolidated sales, largely reflecting lower production assumptions and the decline in the euro. We lowered our adjusted EBIT margin to a range of 5.0% to 5.4%. Interest expense has increased to approximately $90 million from approximately $80 million previously, reflecting lower cash balances in different regions of the world. Net income attributable to Magna has been reduced, reflecting lower sales, lower margin, and higher interest expense. And our equity income, tax rate and capital spending expectations are unchanged from our outlook from February.

接下來，我將介紹我們的前景。正如 Swamy 早些時候所報導的，我們的前景反映了北美和歐洲的預期汽車產量較低。我們對中國生產的假設高於我們之前對 2022 年的預期，但低於今年餘下時間的預期。我們假設我們展望中的匯率將接近近期匯率，因此，我們現在預計 2022 年歐元和加元相對於我們之前的展望走弱。我們降低了部門和綜合銷售額的範圍，主要反映了較低的生產假設和歐元的貶值。我們將調整後的息稅前利潤率下調至 5.0% 至 5.4% 的範圍。利息費用已從之前的約 8,000 萬美元增加到約 9,000 萬美元，反映出世界不同地區的現金餘額較低。歸屬於麥格納的淨收入已經減少，反映出銷售額下降、利潤率下降和利息支出增加。我們的股票收入、稅率和資本支出預期與 2 月份的展望保持不變。

Largely as a result of expected lower earnings in our revised outlook, we have reduced our free cash flow projections to a range of $700 million to $900 million compared to $1.1 billion to $1.3 billion previously.

很大程度上由於我們修訂後的展望中預期收益較低，我們將自由現金流預測從之前的 11 億美元到 13 億美元下調至 7 億美元到 9 億美元之間。

In summary, considering significant ongoing industry headwinds, we are pleased with our Q1 outperformance. We are deeply focused on operational excellence, cost controls and customer recoveries to mitigate the impacts of an increasingly challenging environment. Our balance sheet and cash flow allow us to make ongoing investments to drive future growth, and our portfolio positions us for growth in free cash flow as the market ultimately recovers in the future. We hope to see many of you in May at our investor event at Pontiac. Thank you for your attention. We would be happy to answer your questions.

總而言之，考慮到持續存在的重大行業逆風，我們對第一季度的出色表現感到滿意。我們專注於卓越運營、成本控制和客戶恢復，以減輕日益具有挑戰性的環境的影響。我們的資產負債表和現金流使我們能夠進行持續的投資以推動未來的增長，我們的投資組合使我們能夠在未來市場最終復甦時實現自由現金流的增長。我們希望在 5 月在龐蒂亞克的投資者活動中見到你們中的許多人。感謝您的關注。我們很樂意回答您的問題。

(Operator Instructions) And our first question comes from the line of John Murphy of Bank of America.

（操作員說明）我們的第一個問題來自美國銀行的 John Murphy。

Just a first question that wasn't mentioned in the outlook or in the course of the first quarter results as sort of the volatility in schedules. And I know you're kind of implicitly have this in your guidance and in your discussion. I was just curious if you could talk about how much pressure that created in the quarter? If you see any stabilization in schedules going forward, and how important that is obviously, to the remainder of this year?

展望中或第一季度結果中沒有提到的第一個問題是時間表的波動。而且我知道您在指導和討論中隱含著這一點。我只是想知道您能否談談本季度造成的壓力有多大？如果您看到未來的日程安排有任何穩定，這顯然對今年剩餘時間有多重要？

John, we are still continuing to see some uncertainties. But as we mentioned, the sales were higher than what we had expected or planned. So that is a positive sign. But it's not still as stable, the releases and how we are able to process them is creating a little bit of stress in the system. But with the operating systems that we have and processes we have in place, we are able to address the needs. So I think the expedited freight is a big issue because of these uncertainties that have cost in the schedules. So hopefully, now as we go forward, we hope to see a little bit of stability in the second half. But I think it's still something that we are monitoring very closely, and we are not over the hill yet.

約翰，我們仍然繼續看到一些不確定性。但正如我們所提到的，銷售額高於我們的預期或計劃。所以這是一個積極的信號。但它仍然不是那麼穩定，版本以及我們如何處理它們正在給系統帶來一點壓力。但是通過我們擁有的操作系統和流程，我們能夠滿足需求。因此，我認為加急貨運是一個大問題，因為這些不確定性會在時間表中產生成本。所以希望，現在隨著我們前進，我們希望在下半場看到一點穩定。但我認為這仍然是我們非常密切關注的事情，而且我們還沒有越過山坡。

And do you get the sense that there might be some building of inventories in the channel to the automakers, where they're ordering, but maybe not producing? I'm just curious if you're seeing anything like that?

您是否感覺到，在通往汽車製造商的渠道中可能存在一些庫存積壓，他們在哪裡訂購，但可能沒有生產？我只是好奇你是否看到這樣的東西？

John, it's difficult to say, yes. But I -- at this point, I don't see a lot of build yet because there is so much pent-up demand. And if you look at the dealer lots and what's available, I think it's still far from being -- starting to fill the pipeline of the inventory.

約翰，很難說，是的。但是我 - 在這一點上，我還沒有看到很多構建，因為有太多被壓抑的需求。如果你看看經銷商的批次和可用的東西，我認為它還遠未開始——開始填補庫存的管道。

Okay. And then just a second question on Slide 11 and 12. You highlighted price increases to recover higher input costs and then favorable commercial terms in the quarter. It seems like the automakers are becoming more receptive to these discussions given the very high levels of inflation on raws as well as other input costs. I'm just curious if your conversations are changing there? And when you talk about that $290 million of higher input costs in your outlook, is that net or gross of these discussions?

好的。然後只是幻燈片 11 和 12 上的第二個問題。您強調了價格上漲以收回更高的投入成本，然後是本季度有利的商業條款。鑑於原材料和其他投入成本的高通脹水平，汽車製造商似乎越來越接受這些討論。我只是好奇你的談話是否在那裡發生了變化？當您在展望中談到 2.9 億美元的更高投入成本時，這些討論是淨還是毛？

Yes. I think, John, what we're talking about is net, as we mentioned, the numbers. The discussions with the customers are ongoing, and it's a various forms of discussions in terms of whether it is the freight, whether it's the commodity, whether it's various things that we are seeing, and the discussions are at various levels and a lot of transparency and a lot of objective data. Our target is to close all the positions that are open today. I don't know, Pat, if you want to add some specifics to that?

是的。我認為，約翰，正如我們所提到的，我們正在談論的是淨數字。和客戶的討論還在進行中，是各種形式的討論，是不是運費，是不是商品，是不是我們看到的各種東西，討論的層次很多，透明度也很大以及大量客觀數據。我們的目標是平倉今天所有未平倉頭寸。我不知道，帕特，你想補充一些細節嗎？

I don't think I have much to add, Swamy. John, just to be clear, the $290 million is on a net basis, and that would be incremental to the $275 million we would have spoken to in February.

我想我沒有太多要補充的，斯瓦米。約翰，需要明確的是，2.9 億美元是淨額，這將比我們在 2 月份談過的 2.75 億美元有所增加。

Got you. Okay. And then just lastly, I mean, obviously, there's a lot of noise and a lot of stuff going on here in the short run. I'm just curious how booking activity is going as far as you're quoting? Is there any push out or delay in the discussions? Or is it sort of more normal course there on bookings?

得到你。好的。最後，我的意思是，很明顯，短期內會有很多噪音和很多事情發生。我只是好奇，就您所引用的而言，預訂活動進展如何？討論中是否有任何推動或延遲？還是那裡的預訂課程更正常？

John, I think it's difficult to say. Over the year, it changes so significantly, but I would say, if I look at what we generally target for the year and what we look, I would say we have made good progress for the first quarter.

約翰，我認為這很難說。一年來，它發生瞭如此顯著的變化，但我想說，如果我看看我們今年的總體目標和我們的看法，我會說我們在第一季度取得了良好的進展。

Okay. And then maybe if I could sneak 1 more in. The 2024 outlook doesn't look like it changed at all. I mean somebody -- you can argue that because of the near-term volume pressure, you might see some upside in '23 and '24 as there's pent-up demand that's released or (inaudible) released around the world. But conversely, you could argue that input costs are up. I mean, how are you guys thinking about that 2024 outlook? Or is it something that you have not stated -- put a new pin in? Just curious what your thoughts are there.

好的。然後也許我可以再偷偷溜進去 1 次。2024 年的前景看起來根本沒有改變。我的意思是有人——你可以爭辯說，由於近期的成交量壓力，你可能會在 23 年和 24 年看到一些上行空間，因為世界各地已經釋放或（聽不清）釋放了被壓抑的需求。但相反，你可以說投入成本上升了。我的意思是，你們如何看待 2024 年的前景？或者是你沒有說明的東西——放一個新的別針？只是好奇你的想法是什麼。

John, it's Pat again. So I think it's the latter. We still haven't put a pin in our 2024. So our process is unchanged from prior years where we provide the current year and 3-year outlook. Our internal processes mirror that in the sense that we focus on a rolling 12-month forecast. So we haven't updated '24 at this point.

約翰，又是帕特。所以我認為是後者。我們還沒有確定 2024 年的目標。因此，我們的流程與前幾年相比沒有變化，我們提供了當前年度和 3 年的展望。我們的內部流程反映了這一點，我們專注於 12 個月的滾動預測。所以我們目前還沒有更新'24。

Our next question comes from the line of Itay Michaeli of Citi.

我們的下一個問題來自花旗的 Itay Michaeli。

I wanted to go back to the $290 million net input costs and maybe hoping you could talk about how you plan on recovering that over the next few years? And particularly, the question is I'm curious kind of what you're getting in new contracts? Maybe is the content per vehicle higher on replacement contracts and new bookings to reflect go-forward higher input costs and inflation, or kind of maybe other ways that you plan on recovering that over time?

我想回到 2.9 億美元的淨投入成本，也許希望您能談談您計劃在未來幾年內如何收回成本？特別是，問題是我很好奇你在新合同中得到了什麼？也許更換合同和新預訂的每輛車的內容更高，以反映未來更高的投入成本和通貨膨脹，或者你計劃隨著時間的推移恢復的其他方式？

Sorry, go ahead Swamy, I can take...

抱歉，Swamy 繼續，我可以...

Sorry, Pat...

對不起，帕特...

Sorry, go ahead, Swamy, I was going to spot first off, just -- and Swamy you could jump in on the customer side. So Itay, it is when we think about the $290 million, really, that's being driven in the short term really by higher energy utility, including freight type costs. That's what's driving the bulk of that increase. When you turn to what we're doing on the quoting side, our view has been to take advantage of customer programs where they have been available. I think with the changing environment, we are evaluating all options, including expanded customer programs or hedging strategies.

抱歉，請繼續，Swamy，我打算首先發現，只是 - Swamy 你可以跳到客戶方面。所以 Itay，當我們考慮到 2.9 億美元時，實際上，這在短期內實際上是由更高的能源公用事業推動的，包括貨運類型的成本。這就是推動大部分增長的原因。當您談到我們在報價方面所做的事情時，我們的觀點是利用可用的客戶計劃。我認為隨著環境的變化，我們正在評估所有選項，包括擴展的客戶計劃或對沖策略。

Great. Perfect. And then just 2 other follow-ups. One, I was hoping you could talk to maybe the cadence of margins for the rest of the year, how you think about that? And also for CapEx, look kind of low in Q1 relative to your full year guidance.

偉大的。完美的。然後只是其他 2 次後續行動。一，我希望你能談談今年剩餘時間的利潤節奏，你怎麼看？而且對於資本支出，相對於您的全年指導，第一季度看起來有點低。

On the first question, Itay, I was -- we don't specifically give guidance on a quarterly basis. We provide annual guidance. That being said, my expectation would be that the first half of the year, we should be feeling the decrementals from the higher input costs higher in the first half relative to the second half. And it's a factor of the -- it's not necessarily a linear calculation whether it's 2021 or 2022.

關於第一個問題，Itay，我是——我們沒有按季度具體提供指導。我們提供年度指導。話雖如此，我的預期是上半年，相對於下半年，我們應該會感覺到上半年投入成本較高的下降幅度更大。這是一個因素——無論是 2021 年還是 2022 年，它都不一定是線性計算。

On the second part of your question on the capital. I think the capitals tends to be lighter in the first quarter. So what we do see as the year progresses. And there's a disproportionate number of launches that happened in the back half of the year. So the capital, historically, and our expectations will continue to be that it's back -- its rear ended.

關於你關於首都的問題的第二部分。我認為資本在第一季度往往會更輕。因此，隨著時間的推移，我們確實看到了。今年下半年發生的發射數量不成比例。因此，從歷史上看，首都和我們的期望將繼續是它的回歸——它的後端。

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

我們的下一個問題來自 BMO Capital Markets 的 Peter Sklar。

Pat, sorry, I'm still a little confused on the $290 million of net input costs. Is that -- I thought the comparable number when you released the initial guidance was $190 million, and therefore, that's up $100 million. Is that correct or not correct?

帕特，對不起，我對 2.9 億美元的淨投入成本仍然有些困惑。是嗎 - 我認為您發布初始指導時的可比數字是 1.9 億美元，因此增加了 1 億美元。這是正確的還是不正確的？

If we -- yes, sorry, Peter. So when we released in February, our guidance included $275 million total of year-over-year, let's call it, inflation costs. Of the $275 million, $190 million related to commodity type costs, whether it's oil, steel, resin. So that was the $190 million that we had referred to. What we're seeing now is an incremental above the $275 million, another $290 million. So full year, we're talking in the range of $565 million 2021 to 2022 impact of higher input costs, whether it's labor. And, Peter, just to be clear on the incremental $290 million, the majority of that increase relates to utilities, energy, primarily in Europe, and we also have freight, which we are getting surcharges related to higher input costs on their end.

如果我們——是的，對不起，彼得。因此，當我們在 2 月份發佈時，我們的指導包括 2.75 億美元的同比總額，我們稱之為通脹成本。在 2.75 億美元中，1.9 億美元與商品類型成本有關，無論是石油、鋼鐵還是樹脂。這就是我們提到的 1.9 億美元。我們現在看到的是超過 2.75 億美元的增量，再增加 2.9 億美元。所以全年，我們談論的是 2021 年至 2022 年投入成本增加的 5.65 億美元影響，無論是勞動力。而且，彼得，只是為了明確增加的 2.9 億美元，其中大部分增長與公用事業、能源有關，主要在歐洲，而且我們還有運費，我們正在收取與更高投入成本相關的附加費。

Okay. That's clear now. My next question, on the normal course issuer bid, if I did my math correctly, you bought back about 2% of the stock during the quarter. Your debt-to-EBITDA ratio is at 1.55, which is slightly through, I think, the high end of your -- of the range where you like to be, albeit on a very low denominator given where global vehicle production volumes are. And -- but you're through the high end of the range, and I noticed your -- like with the revised 2022 guidance, your free cash flow estimates are coming down. So what should we expect on the NCIB going forward?

好的。現在很清楚了。我的下一個問題是關於正常課程發行人的出價，如果我的數學計算正確，您在本季度回購了大約 2% 的股票。您的債務與 EBITDA 的比率為 1.55，我認為這略高於您希望達到的範圍的高端，儘管考慮到全球汽車產量的分母非常低。而且——但是你已經過了這個範圍的高端，我注意到你的——就像修訂後的 2022 年指導一樣，你的自由現金流估計正在下降。那麼我們對 NCIB 的未來有何期待？

I think our capital allocation strategies haven't changed, Peter. We're going to continue down the path of investing in our business, and where we do have cash that's available for share buybacks, we're going to continue down that path. Specifically, for this year, we are slightly above at 1.55. I think the one thing that should be considered is that we do have excess cash sitting on our balance sheet that's available for you. So it's more than an EBITDA play. We -- at 1.55, we do have excess cash. If you think about our cash balances, we're probably in the range of slightly under $1 billion needed to run our business, which means we do have excess cash to fund either further investments, but also NCIB.

我認為我們的資本配置策略沒有改變，彼得。我們將繼續沿著投資我們的業務的道路前進，如果我們確實有可用於股票回購的現金，我們將繼續沿著這條道路前進。具體來說，今年，我們略高於 1.55。我認為應該考慮的一件事是，我們的資產負債表上確實有多餘的現金可供您使用。因此，這不僅僅是 EBITDA 的遊戲。我們——在 1.55 時，我們確實有多餘的現金。如果您考慮我們的現金餘額，我們的業務運營所需的資金可能略低於 10 億美元，這意味著我們確實有多餘的現金來為進一步的投資和 NCIB 提供資金。

Okay. And then just my last question is in the write-up when you're talking about the quarter being a little bit above your expectation, I believe, you're -- in the earnings, you said one of the reasons was higher commercial items. I wasn't too sure. I don't think, I've heard you use that expression before. Is that price adjustments from customers? Or what are commercial items?

好的。然後我的最後一個問題是，當你談到本季度略高於你的預期時，我相信，你是 - 在收益中，你說原因之一是更高的商業項目.我不太確定。我不認為，我以前聽過你用過這種表達方式。這是客戶的價格調整嗎？或者什麼是商業物品？

I wouldn't -- and Swamy jump in. But when we talk about commercial items, I think that's -- I think we've used it in the past primarily in the MD&A going back. And, Peter, they're not regular course price increases. These are -- these tend to be onetime in nature. They might be out of period. We might be settling something related to '21. Sometimes they go in our favor, sometimes they go against us. And really what happened this quarter, we did have some -- which is good news. We had some positive settlements. And when you compare that to last year, we had a couple that went against us. So net-net, we were up.

我不會 - Swamy 加入。但是當我們談論商業項目時，我認為這是 - 我認為我們過去主要在 MD&A 中使用它。而且，彼得，它們不是常規課程價格上漲。這些是 - 這些往往是一次性的。他們可能已經過時了。我們可能正在解決與 '21 相關的問題。有時他們對我們有利，有時他們對我們不利。事實上，本季度發生的事情，我們確實有一些——這是個好消息。我們有一些積極的解決辦法。當您將其與去年進行比較時，我們有一對反對我們。所以net-net，我們起來了。

I mean, with the onetime in nature, but they are fairly. they do have them from a the time, it's not uncommon that we have these favorable or unfavorable.

我的意思是，在自然界中是一次性的，但它們是公平的。從那時起，他們確實擁有它們，我們有這些有利或不利的情況並不少見。

And our next question comes from the line of Chris McNally of Evercore.

我們的下一個問題來自 Evercore 的 Chris McNally。

Apologies, I'm going to beat the dead horse and go back to the $290 million. Given that we see that the reduction in guide is largest in body, I had assumed that maybe it could be a timing difference and some of the raw material pressure could be coming in steel. But it seems like the comment just made was the majority of the $290 million was utilities, energy, freight in Europe. So could you just talk about why body would be hit the most? Is that specifically because of the amount of production and facilities for body in Europe? And then I can ask a follow-up after that.

抱歉，我要打死馬，回到2.9億美元。鑑於我們看到導軌的減少量最大，我曾假設這可能是時間差異，並且一些原材料壓力可能來自鋼材。但似乎剛剛發表的評論是 2.9 億美元中的大部分是歐洲的公用事業、能源和貨運。所以你能談談為什麼身體會受到最多的打擊嗎？是因為歐洲的車身生產和設施數量嗎？然後我可以在那之後詢問後續行動。

I think I'm not going to get down into the specifics. So you're correct, Chris, in the sense that it wasn't really a steel-driven issue. And that's primarily because we do have a lot of customer programs related to our steel buy. When you think about the energy cost in Europe, the BES group would be disproportionately hit in the sense that they are huge energy consumers. When you think about our footprint, in particular, our body and chassis group, has a significant footprint in Germany, Austria. So there is a little bit of a disproportionate hit given the sense that they are heavy energy users, in particular, in Europe. The other piece, when you look at the BES group, we spoke briefly about our operations in Russia, and we disclosed that we had $371 million of sales in our Russia operations. And we've removed -- effectively, what we've done is we have 0 sales for Russia on a go-forward basis for 2022. And Russia disproportionately hits our BES segment as well.

我想我不會深入細節。所以你是對的，克里斯，從某種意義上說，這並不是一個真正由鋼鐵驅動的問題。這主要是因為我們確實有很多與鋼鐵採購相關的客戶計劃。當您考慮歐洲的能源成本時，BES 集團將受到不成比例的打擊，因為他們是巨大的能源消費者。當您考慮我們的足跡時，特別是我們的車身和底盤組，在德國、奧地利擁有重要的足跡。因此，鑑於他們是重度能源用戶，特別是在歐洲，因此受到了不成比例的打擊。另一篇文章，當您查看 BES 集團時，我們簡要介紹了我們在俄羅斯的業務，我們透露我們在俄羅斯的業務有 3.71 億美元的銷售額。而且我們已經刪除了——實際上，我們所做的是，在 2022 年的基礎上，我們對俄羅斯的銷售額為 0。俄羅斯也不成比例地衝擊了我們的 BES 細分市場。

Okay. So actually -- so I would divide that into 2. So essentially, we'll take some large hit from Russia theoretically. It's not -- it's onetime until you can actually physically close the facility, so it could be just ballpark over $100 million. So that's a big number for body. But then just to go back on the energy cost...

好的。所以實際上 - 所以我會將其分為 2。所以從本質上講，我們將從理論上受到俄羅斯的一些重大打擊。不是——只有一次，你才能真正關閉設施，所以它可能只是超過 1 億美元。所以這對身體來說是一個很大的數字。但只是回到能源成本......

Sorry, Chris. Sorry, Chris.

對不起，克里斯。對不起，克里斯。

Yes.

是的。

Sorry, Chris, sorry, I don't want to catch off. I just want to be clear on the Russia piece. We haven't taken any impairment charges related to our Russian operations, so we still have amount recorded on our balance sheet. What I was referring to on the BES segment was our outlook in February assumed sales in the range of $400 million for consolidated Magna and profitability of those operations. Our current outlook assumes 0 sales on a go-forward basis and a cash burn in those operations. So on a delta basis, we have a deterioration primarily in our BES segment related to Russia.

對不起，克里斯，對不起，我不想趕上。我只是想澄清一下俄羅斯的問題。我們沒有收取與俄羅斯業務相關的任何減值費用，因此我們的資產負債表上仍有金額記錄。我在 BES 領域指的是我們在 2 月份的展望，假設合併麥格納的銷售額在 4 億美元範圍內以及這些業務的盈利能力。我們目前的展望假設未來銷售額為 0，並且這些業務存在現金消耗。因此，在三角洲的基礎上，我們主要在與俄羅斯相關的 BES 部分出現惡化。

Yes. No, absolutely. And I was just doing the mental math of taking 400x 30% plus and getting over $100 million of EBIT. I think we're on the same page there. Just to back though to the energy, I know you're not going to give a number, but lots of other industrials, other suppliers have talked about energy costs as a percentage of revenue maybe being about 1% of revenue and a lot of their contracts being sort of fixed on the energy side. So the amount that floats with things like [nat-gas] is only about 25%. I'm just curious, that's still a very large number that $290 million. So I'm curious is expedited freight from your Tier 2s? Is that a big number, too? Because I'm just trying to make my own estimates for $290 million when you think about just energy cost. It's a really big number.

是的。不，絕對。而我只是在做心算，即獲得 400 倍 30% 以上的收益並獲得超過 1 億美元的息稅前利潤。我認為我們在同一頁面上。只是回到能源方面，我知道你不會給出一個數字，但許多其他工業、其他供應商已經談到能源成本佔收入的百分比可能約為收入的 1%，而他們的很多合同在能源方面是固定的。因此，像 [nat-gas] 這樣的東西漂浮的量只有 25% 左右。我只是好奇，這仍然是一個非常大的數字，即 2.9 億美元。所以我很好奇你們的 2 級貨運是加急貨運嗎？這也是一個很大的數字嗎？因為當您考慮能源成本時，我只是在嘗試自己估算 2.9 億美元。這是一個非常大的數字。

Yes. Yes. So to be clear, on the $290 million, that includes multiple items. It's going to include some leakage on other items, whether it's purchase components. There is a little bit of labor in that number. In the case of energy, that is the bigger portion of it. I would say it's higher than 50%. When we think about our energy costs, it's really hard to give a number of what the energy would be as a percentage of sales. It really fluctuates from process to process. Historically, energy hasn't been an issue for us. It's been a fairly stable market. Obviously, the energy costs have been driven by Russia's invasion of Ukraine, and what we're seeing in Europe. We have gone into the market to hedge a portion of our buy to secure supply. And we're going to have to see how this plays out, Chris.

是的。是的。因此，需要明確的是，在 2.9 億美元上，其中包括多個項目。它將包括其他項目的一些洩漏，無論是購買組件。這個數字有一點點勞動。在能量的情況下，這是它的較大部分。我會說它高於50％。當我們考慮我們的能源成本時，真的很難給出能源佔銷售額的百分比。它確實因流程而異。從歷史上看，能源對我們來說不是問題。這是一個相當穩定的市場。顯然，能源成本是由俄羅斯入侵烏克蘭以及我們在歐洲看到的情況推動的。我們已經進入市場對沖部分購買以確保供應。克里斯，我們將不得不看看結果如何。

But some of the things like additional commodity related to Tier 2s, that some of that's energy as well. Our customers -- our suppliers are having energy issues or freight is energy as well as some of the -- in some ways, they're tied to energy, but they're not necessarily tied to our sales. They tried other companies' businesses and it's come through to charges on us.

但有些東西，比如與第 2 層相關的額外商品，其中一些也是能源。我們的客戶——我們的供應商遇到能源問題，或者貨運就是能源以及其中一些——在某些方面，他們與能源相關，但不一定與我們的銷售相關。他們嘗試了其他公司的業務，並且對我們提出了指控。

Our next question comes from the line of Mark Neville of Scotia Capital.

我們的下一個問題來自 Scotia Capital 的 Mark Neville。

Maybe not maybe just putting aside the $290 million just sort of costs in general, I'm just curious sort of when you think about the cost inflation you're facing, so what you think is more structural? If you think there's any longer-term sort of implication for margin and maybe some of the things you can do to offset some of those costs?

也許不只是把 2.9 億美元的一般成本放在一邊，當你想到你所面臨的成本膨脹時，我只是好奇，所以你認為什麼更具結構性？如果您認為對利潤率有任何長期影響，也許您可以採取一些措施來抵消其中的一些成本？

Mark, part of it is obviously continuous improvement, looking at the cost structure, which we did in the last 2 years and as we continue to look at that operationally. Again, I think Pat touched on it. As we look at the new codes, you start reflecting the new economics and, in some cases, mechanisms that reflect today's reality, to derisk as much as possible. On the other side, we kind of also have to look at inflation, which was pretty stable and modest in our mature markets. That's not so as we look at it. So that goes to some of the discussions that are ongoing with our customers. Difficult to kind of predict the timing, but it's an ongoing discussions with all OEMs to see how we can look at different ways to address the costs that we are seeing.

馬克，其中一部分顯然是持續改進，看看我們在過去 2 年所做的成本結構，並且我們將繼續在運營方面進行研究。再一次，我認為帕特談到了它。當我們看到新的代碼時，你開始反映新的經濟學，在某些情況下，反映當今現實的機制，盡可能地去冒險。另一方面，我們還必須考慮通貨膨脹，這在我們的成熟市場中相當穩定和溫和。事實並非如此。這就是我們與客戶正在進行的一些討論。很難預測時間，但這是與所有原始設備製造商正在進行的討論，以了解我們如何尋找不同的方法來解決我們所看到的成本。

I would say, structurally, there is -- it won't be substantially different other than how the commodities or the labor market might set a new baseline, and that we have to see going forward in the next years to come.

我想說，在結構上，除了大宗商品或勞動力市場如何設定新的基線之外，它不會有太大的不同，我們必須看到未來幾年的發展。

Yes, right. I guess, on the $565 million for the year, -- can you maybe rank order -- again, I appreciate the $290 million it sounds like energy break, but could you maybe rank order that -- the components of that $565 million?

是的，沒錯。我想，在今年的 5.65 億美元中，——你可以排序嗎——我再次欣賞 2.9 億美元，這聽起來像是能量中斷，但你可以排序——這 5.65 億美元的組成部分嗎？

I mean, turnabout the first $275 million, we said a good chunk of that was commodity and labor on top of that and a bunch of loan so right. And then I think that to $20 million I'm not sure I look in the total cloud 65. We have looked at that way, but those are the question that's it. Okay.

我的意思是，在最初的 2.75 億美元中，我們說其中很大一部分是商品和勞動力，還有一大筆貸款。然後我認為到 2000 萬美元，我不確定我是否會查看整個雲 65。我們已經看過這種方式，但問題僅此而已。好的。

Maybe just to follow up. I think it was Peter's question on the NCIB. Just if I'm reading it correctly, the 1.55 or the 1.5, it's not a hard stop. There's -- we should expect some buyback actually this year, correct?

也許只是為了跟進。我認為這是彼得在 NCIB 上的問題。只要我沒看錯，1.55 或 1.5，這不是一個硬停止。有 - 我們應該期待今年實際上有一些回購，對嗎？

Mark, I think -- like we -- I don't think we really guide on where we're going to be on our NCIB. We work within our framework. It's a strategy on capital allocation that hasn't changed in many years where if there is an opportunity to grow the business at an appropriate value, we're going to do that first. And where we do have excess liquidity, we are going to use that cash, if appropriate, to continue NCIBs.

馬克，我認為 - 就像我們一樣 - 我認為我們並沒有真正指導我們將在 NCIB 上的位置。我們在我們的框架內工作。這是一種多年來沒有改變的資本配置策略，如果有機會以適當的價值發展業務，我們將首先這樣做。如果我們確實有多餘的流動性，我們將在適當的情況下使用這些現金來繼續 NCIB。

Yes. That's how we've always done it, and we're doing the same now. We don't really kind of forecast whether our outlook is for or share buybacks.

是的。這就是我們一直這樣做的方式，現在我們也在這樣做。我們並沒有真正預測我們的前景是針對股票回購還是股票回購。

Sorry, Mark, it's Vince. Let me just add to that, Pat, if you don't mind. I've been in the room here, I'm trying to say something. And Pat, I think you did a great job. So keep it up. Mark, I think when you look at the -- our capital structure, there's a point in time, you've got a quarter, so you look at it and you get what past the number was [1.55], and you got cash on the balance sheet. But the approach that we've been taking for years is really look at our business plan and look at our outlook, and we're looking at the current year, we're looking over the next couple of years. We look at how that changes as a result of macroeconomic events has talked and Swamy talked a lot about input costs and volumes. And you kind of address the course issue bid on that basis, and you try to look at it, and if you're doing buybacks and what we've done historically is hat do that over the course of the year and not try to bundle it in 1 quarter.

抱歉，馬克，我是文斯。帕特，如果你不介意的話，讓我補充一下。我一直在這兒的房間裡，我想說點什麼。帕特，我認為你做得很好。所以堅持下去。馬克，我認為當你查看我們的資本結構時，有一個時間點，你有一個季度，所以你看看它，你會得到超過這個數字的 [1.55]，你得到了現金資產負債表。但是我們多年來一直採用的方法是真正查看我們的業務計劃並查看我們的前景，我們正在關註今年，我們正在關注未來幾年。我們研究了宏觀經濟事件如何改變這種情況，Swamy 談到了很多關於投入成本和數量的問題。您在此基礎上解決課程問題出價，然後您嘗試查看它，如果您正在進行回購，而我們過去所做的就是在一年中這樣做，而不是嘗試捆綁它在 1 個季度。

So I think the right way to think about it is that we've got a long-term strategy will be in and out of the market. It will be impacted by certainly what we see opportunities are, but we're kind of looking at capital structure and what's the right structure to have, not making sure we have the right amount of liquidity, not too much liquidity. And then to the extent we have excess liquidity approach to market.

所以我認為正確的思考方式是我們有一個長期的戰略，將進出市場。它肯定會受到我們所看到的機會的影響，但我們正在關注資本結構和正確的結構，而不是確保我們擁有適量的流動性，而不是過多的流動性。然後在某種程度上我們對市場有過剩的流動性方法。

So it's much broader at a point in time, Mark.

所以它在某個時間點要廣泛得多，馬克。

Our next question comes from the line of Dan Levy of Credit Suisse.

我們的下一個問題來自瑞士信貸的 Dan Levy。

I think, on margin, we know there's obviously cost inflation is a big driver here, but we also know that there is a relatively low level of production and a number of production inefficiencies. So maybe you can give us a sense of just backing out the production -- backing out the cost inflation, what would the underlying margin structure look like. I don't know if that $290 million is an inclusive number or if there's other numbers as well that are labor? You mentioned it's just utilities and energy. I don't know if labor is something incremental.

我認為，在利潤率方面，我們知道成本通脹顯然是一個很大的驅動因素，但我們也知道生產水平相對較低和一些生產效率低下。所以也許你可以給我們一種只是支持生產的感覺——支持成本膨脹，潛在的利潤率結構會是什麼樣子。我不知道這 2.9 億美元是否是一個包含數字，或者是否還有其他數字是勞動力？你提到它只是公用事業和能源。我不知道勞動力是否是增量的。

And if we assume that cost inflation doesn't go away, but that an improved production level comes and more stable production, maybe you can give us a flavor of what your earnings power is with higher volume even in the face of higher cost inflation. Is there a potential for significant improvement with higher LVP even if inflation is what it is and it doesn't get any better?

如果我們假設成本通脹並沒有消失，但生產水平的提高和更穩定的生產，也許你可以讓我們了解一下你的盈利能力是什麼，即使面對更高的成本通脹。即使通貨膨脹就是這樣並且沒有好轉，是否有可能通過更高的 LVP 顯著改善？

Dan, it's Pat, I'll start with this, and Louis and Swamy can jump in. When we think about the first quarter and we look at the deterioration in profitability from Q1 last year to Q1 this year. The vast majority, basically, all of it relates to inflation type items. So you get a sense of operating. We're still operating, I would say, efficiently. I think Q1 of last year was a strong quarter. The semi issues really start to accelerate during the year with a stop start. So I would say, operationally, I think that's our comments that we had a strong quarter operationally that, despite some of the stop starts, we did have a strong quarter.

丹，我是帕特，我將從這個開始，路易斯和斯瓦米可以加入。當我們考慮第一季度時，我們會看到從去年第一季度到今年第一季度的盈利能力惡化。基本上，絕大多數都與通貨膨脹類型的項目有關。所以你會有一種操作感。我想說，我們仍在高效運作。我認為去年第一季度是一個強勁的季度。半問題在這一年中真正開始加速，停止開始。所以我想說，在運營方面，我認為這是我們的評論，即我們在運營方面有一個強勁的季度，儘管有一些停止開始，但我們確實有一個強勁的季度。

If we fast forward that into the -- our full year outlook, with the additional [$590 million], we are seeing -- subject to the sales declines we're seeing our decrementals in line with our expectations. So my view would be as volumes come back, my expectation would be that we're able to flex back up at appropriate incremental margins.

如果我們將其快速推進到我們的全年展望中，我們將看到額外的 [5.9 億美元]，但我們看到銷售額下降符合我們的預期。所以我的觀點是隨著銷量的回升，我的期望是我們能夠以適當的增量利潤回升。

Okay. So the incremental margin on the recovery would be similar to what you've talked about in the past, which is, I think, something like in the low 20% range. Is that correct?

好的。因此，復甦的增量利潤率將與您過去所說的相似，我認為，大概在 20% 的低位範圍內。那是對的嗎？

That's -- it varies by segment, Dan, but historically, that's what we've seen ex stop-start type issues.

那是 - 它因細分市場而異，丹，但從歷史上看，這就是我們所看到的停止啟動類型問題。

Great. And then as a follow-up, you've guided to -- it sounds like you're maintaining your guidance to -- for annual engineering expense related to mega trends, which makes sense. But I just want to confirm that within this, that everything is intact or that there's pieces that are maybe a bit more discretionary and that you're pushing out? Maybe you could just give us a sense of in this environment where you have higher inflation, how you think about the megatrend spending? Is it just the plan is what it is, it's not going to change? Or are there more discretionary elements that are being reprioritized?

偉大的。然後作為後續行動，你已經指導 - 聽起來你正在維持你的指導 - 與大趨勢相關的年度工程費用，這是有道理的。但我只是想確認，在這之中，一切都完好無損，或者有些部分可能更具自由裁量權並且你正在推出？也許您可以讓我們了解一下在這種通貨膨脹較高的環境中，您如何看待大趨勢支出？只是計劃就是這樣，不會改變嗎？還是有更多的可自由支配的元素被重新確定優先級？

Dan, I think when we look at most of the engineering spend, whether it is core, that means you're looking at a platform or looking at technology for the future, which we continue to, if you look at application engineering, that means it's programs that we have, and we are working towards the launch. But in either case, whether it is under the -- given economic conditions or not, we have a very rigorous process to hit milestones and performance targets for the project to say, are we getting there. So we have that, call it, gates in place, and we continue to look at that. But obviously, under given circumstances, we look at all tactical efficiency matters to see how we can tighten as much as possible. But at the same time, like we said, we are talking about the next 3, 5, 7 years. So we are very cautious not to take away anything for that to build our future. So I would say we are on the path to continue with the right amount of vigilance to look at the tactical items.

丹，我認為當我們查看大部分工程支出時，無論是核心支出，這意味著您正在關注平台或未來的技術，如果您關注應用工程，我們將繼續這樣做，這意味著這是我們擁有的程序，我們正在努力推出。但在任何一種情況下，無論是否在給定的經濟條件下，我們都有一個非常嚴格的流程來達到項目的里程碑和績效目標，我們可以說，我們是否到達那裡。所以我們有這個，稱之為，門到位，我們繼續關注。但顯然，在特定情況下，我們會關注所有戰術效率問題，以了解如何盡可能收緊。但與此同時，正如我們所說，我們正在談論未來 3、5、7 年。因此，我們非常謹慎，不會拿走任何東西來建設我們的未來。所以我想說，我們正在繼續保持適當的警惕來看待戰術項目。

Great. And then sorry, just a clarification on the earlier points on the cost inflation. I just want to confirm. Is the $290 million an exhaustive number? Or is there -- are there other pieces of inflation that are not included there, most notably on the labor front?

偉大的。然後對不起，只是對成本膨脹的早期觀點的澄清。我只是想確認一下。 2.9億美元是一個詳盡的數字嗎？或者是否存在其他不包括在內的通貨膨脹，尤其是在勞動力方面？

Dan, the $290 million captures virtually everything. There might be a little bit of leakage, but it's -- that's our inflation increase.

丹，2.9 億美元幾乎囊括了一切。可能會有一點點洩漏，但這是 - 這就是我們的通貨膨脹增加。

That's our assumption.

這是我們的假設。

That's our assumption.

這是我們的假設。

Our next question comes from the line of Joseph Spak of RBC.

我們的下一個問題來自 RBC 的 Joseph Spak。

I guess I just want to go back to some of the discussion on recoveries. I just want to be clear, is it your going assumption that inflation, as it relates to energy, logistics, et cetera, that is going to be more difficult to recover from your customers than straight commodity inflation?

我想我只是想回到一些關於回收的討論。我只是想澄清一下，您是否會假設與能源、物流等有關的通貨膨脹比直接的商品通貨膨脹更難從您的客戶那裡恢復？

Joseph, I think there's 2 aspects. One, we are talking about recoveries on codes that are already there today based on agreements and so on. So those are the ongoing discussions that we are targeting to close. But as I mentioned before, if you're looking at future programs, then we look to reflect the new economics and figure out what are the different ways to derisk further, whether it's hedging strategies or beyond customer programs and other mechanisms.

約瑟夫，我認為有兩個方面。第一，我們正在討論根據協議等對今天已經存在的代碼進行恢復。因此，這些是我們打算結束的正在進行的討論。但正如我之前提到的，如果你正在關注未來的計劃，那麼我們會考慮反映新的經濟學並找出進一步降低風險的不同方法，無論是對沖策略還是超越客戶計劃和其他機制。

Okay. And then just on China. I know you mentioned it sounds like that was really the first quarter event, you've lowered it for the rest of the year. Does that contemplate potential disruptions beyond what we've already seen from the shutdowns in China? Like is there a little bit of a sort of hedging factor there for sort of the unknown unknowns that might arise from the shutdowns we've seen to date?

好的。然後只是在中國。我知道你提到這聽起來真的是第一季度的活動，你已經在今年剩下的時間裡降低了它。這是否考慮到超出我們已經從中國停工中看到的潛在破壞？對於我們迄今為止看到的停工可能產生的未知未知數，那裡是否存在某種對沖因素？

Well, when you're forecasting, it's always at a point in time, the best information that you have. So I don't know exactly how the handicap exactly what is in there. It definitely reflects some reduction related to the COVID shutdowns, whether we had everything to today's date, really hard to say, honestly, but definitely implicitly, bringing it down, reflecting the shutdown of the information that we know at this point in time.

好吧，當您進行預測時，它總是在某個時間點，您擁有的最佳信息。所以我不知道到底有什麼障礙。它肯定反映了與 COVID 關閉相關的一些減少，無論我們是否擁有今天的一切，真的很難說，老實說，但絕對隱含地，將其降低，反映了我們目前所知道的信息的關閉。

Okay. So the lower for the balance of the year is basically for what we've seen announced or forecasted today?

好的。所以今年餘額的較低基本上是我們今天看到的宣布或預測的？

Right.

對。

Okay. And I guess, just finally, just on Russia. I know you sort of didn't take any write-downs there. I mean what -- what would you need to see to write off Russia? Or what are maybe -- what are some of the options with those assets?

好的。我想，就在最後，就在俄羅斯。我知道你在那裡沒有做任何減記。我的意思是——你需要看到什麼才能註銷俄羅斯？或者可能是什麼——這些資產有哪些選擇？

Yes. Like I said, the operations are pretty much substantially idled, and Pat talked about some of the numbers. What we have on the balance sheet and what we had as annual revenue and so on. As you can imagine, it's a pretty complex matter with so many elements in terms of government requirements and limitations and how do we honor sanctions that are in place.

是的。就像我說的那樣，運營幾乎處於閒置狀態，Pat 談到了一些數字。我們在資產負債表上擁有什麼以及我們擁有的年收入等等。正如您可以想像的那樣，這是一個非常複雜的問題，涉及政府要求和限制以及我們如何履行現有製裁方面的諸多因素。

And most importantly, I think, we're looking at what the customers are guiding and how they're going to look at going forward. Keeping in mind also what's the best way to safeguard the employees in Russia. So there's a bunch of complex factors here, Joseph, but for 2022, our assumption is that there is no sales or no production from the OEMs there, but we have to kind of wait to watch and see and hopefully give an update as we move forward.

最重要的是，我認為，我們正在研究客戶的指導以及他們將如何看待未來。還要牢記保護俄羅斯員工的最佳方式。所以這裡有很多複雜的因素，約瑟夫，但對於 2022 年，我們的假設是那裡的原始設備製造商沒有銷售或沒有生產，但我們必須等待觀察，並希望在我們移動時提供更新向前。

And our next question comes from the line of Colin Langan of Wells Fargo.

我們的下一個問題來自富國銀行的 Colin Langan。

Just sorry if I missed this. The [$565] million, how much was actually in Q1? And any color on the cadence of how that headwind rolls out? Does it have easier comps in the second half?

如果我錯過了這個，我很抱歉。 [5.65 億美元]，第一季度實際是多少？逆風如何展開的節奏有什麼顏色嗎？下半場有更輕鬆的比賽嗎？

Colin, we're not going to get into specific cadence by quarter. We do give an annual guidance. But on a year-over-year basis, in Q1, if you -- given that the entire reduction in profitability relates to inflation type items. So you can do the math and that's going to work out to in the range of $200 million plus, which -- when you back off that from the [$565] million, so you have in the range of $350 million left. It's not going to be a linear calculation because we did have rising inflation costs throughout 2021. So what we are going to expect, I would say, just broadly, would be that the inflation impacts will be heavier weighted towards the first half of the year compared to the second half of the year.

Colin，我們不會按季度進入特定的節奏。我們會提供年度指導。但是，如果您在第一季度與去年同期相比 - 考慮到盈利能力的整體下降與通貨膨脹類型的項目有關。所以你可以算一下，這將在 2 億美元以上的範圍內計算出來，當你從 [5.65 億美元] 中退出時，你還剩下 3.5 億美元。這不會是一個線性計算，因為我們確實在整個 2021 年都有通脹成本上升。因此，我想說的是，從廣義上講，通脹影響將在今年上半年得到更大的權重與下半年相比。

Okay.

好的。

And given that we had an escalation towards the end of the first quarter. So you're going to see that impact hitting us in the second quarter fully.

鑑於我們在第一季度末的情況有所升級。因此，您將看到這種影響在第二季度全面打擊我們。

So you did 5.3% margins in the first quarter, but the guidance for the year is 5% to 5.4%, so not much of a change. Volume for the market is supposed to improve in the second half. The inflationary factors are moderating in the second half. So why not margin improvement in the second half with those benefits? What's offsetting that?

所以你在第一季度做了 5.3% 的利潤率，但今年的指導是 5% 到 5.4%，所以變化不大。下半年的市場成交量應該會有所改善。通脹因素在下半年有所緩和。那麼，為什麼不通過這些好處在下半年提高利潤率呢？是什麼抵消了它？

If you look at some of the impacts that we're seeing in first quarter kind of started towards the end of the first quarter. So before we start seeing an upswing, hopefully, on the second half of the year, I think there is -- the second quarter still to reckon with all that's happening, I would say.

如果您看一下我們在第一季度看到的一些影響，則開始於第一季度末。因此，在我們開始看到上升之前，希望在今年下半年，我認為第二季度仍然需要考慮所有正在發生的事情，我想說。

Yes, Yes, second half should be better. So the second quarter, (inaudible) first.

是的，是的，下半場應該會更好。所以第二季度，（聽不清）首先。

Okay. And then just you're slightly below IHS now. What are you seeing that's making you more cautious? And any color, in particular, on the semiconductor supply from your visibility? I mean seems like it's still holding in for improving in the second half. Do you see anything different?

好的。然後只是你現在略低於 IHS。你看到了什麼讓你更加謹慎？從您的知名度來看，半導體供應有什麼顏色嗎？我的意思是它似乎在下半場仍在繼續進步。你看到有什麼不同嗎？

Yes. I think we started the year assuming continued constraints on the semiconductor supply. We still think -- the constraints will stay throughout '22 but definitely improve in the second half of the year relative to the first, right? I think we can reasonably say that, although we are expecting improvement going forward, the level of progression we were expecting has slipped a little. And there's really no slack in the supply chain, so any small disruption can put the production behind. Again, so it's something that we have to still continue, and we do continue to monitor it carefully. And there have been a few disruptions. If you see the earthquake in Japan, the zero COVID policy in China and so on. So the conditions are still pretty fluid.

是的。我認為我們在今年開始時假設半導體供應持續受到限制。我們仍然認為 - 限制將在整個 22 年保持不變，但相對於上半年而言，下半年肯定會有所改善，對吧？我認為我們可以合理地說，雖然我們期待進步，但我們期待的進步水平有所下滑。而且供應鏈確實沒有懈怠，因此任何小的中斷都可能使生產落後。再說一次，所以我們仍然必須繼續這樣做，並且我們會繼續仔細監控它。並且出現了一些干擾。如果你看到日本的地震，中國的零 COVID 政策等等。所以條件仍然很不穩定。

Yes. And on the volume side, I don't think we're very far off. But I think Russia, our view on Russia versus IHS aren't quite aligned. So I think that's part of the difference.

是的。在數量方面，我認為我們離我們並不遙遠。但我認為俄羅斯，我們對俄羅斯與 IHS 的看法並不完全一致。所以我認為這是差異的一部分。

And our next question comes from the line of James Picariello of BNP Paribas Exane.

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

Within complete vehicles, just curious how Steyr is managing the current supply chain environment? Is the storyline very similar to other OEMs with respect to semi supply challenges and all the mitigation efforts put in place over the last 2 years?

在整車中，只是好奇 Steyr 如何管理當前的供應鏈環境？在半導體供應挑戰和過去 2 年採取的所有緩解措施方面，故事情節是否與其他 OEM 非常相似？

Yes. James. I don't think there would be any different, like we are putting the full vehicle assembly operation there, but we work where we are responsible to look at the logistics and the supply chain and also working with the OEMs in this case. So I would say it's no different than what we are doing with the rest of the product lines.

是的。詹姆士。我認為不會有任何不同，就像我們將整車組裝業務放在那裡一樣，但我們在負責查看物流和供應鏈的地方工作，在這種情況下還與原始設備製造商合作。所以我想說這與我們對其他產品線所做的沒有什麼不同。

So is there an element of the sourcing running through the OEM and indirectly reaching you guys? Or I don't know if that's what you were trying to get at?

那麼，是否存在通過 OEM 進行採購併間接接觸到你們的元素？或者我不知道這是不是你想要的？

Yes. In some of the cases, the OEMs actually manage -- the chips are some of the products that they would be buying and passing it through to our complete vehicle assembly.

是的。在某些情況下，原始設備製造商實際上管理——芯片是他們將購買的一些產品，並將其傳遞給我們的整車組裝。

Got it. Okay. So if most OEMs are saying second half improvement, there's no reason to think that Steyr wouldn't also be in the same cap? Understood.

知道了。好的。因此，如果大多數原始設備製造商都在說下半年有所改善，那麼沒有理由認為斯太爾不會也處於同樣的上限？明白了。

So it's not -- I would say it's not specific to Steyr only. It is to all our product lines because we have various touch points with the customers as we deal with them. Steyr happens to be from a complete vehicle assembly perspective.

所以它不是——我會說它不僅僅針對斯太爾。它適用於我們所有的產品線，因為我們在與客戶打交道時與他們有不同的接觸點。斯太爾恰好是從整車裝配的角度來看的。

Yes, that makes sense. And then just on electrification, you have 2 full quarters now of the LG powertrain JV fully operational. Is there any update to the JV's prospects, the trajectory -- the 50% CAGR trajectory just based on what both sides you bring to the table, in 3 months, it will be a 1-year anniversary somehow.

是的，這是有道理的。然後就電氣化而言，您現在有 2 個完整季度的 LG 動力總成合資企業全面投入運營。合資公司的前景是否有任何更新，軌跡 - 50% 的複合年增長率軌跡只是基於雙方帶來的結果，在 3 個月內，不知何故將是一周年紀念日。

Yes. I would say we are still on track and on line to reiterate the 50% CAGR that we talked about. But James, I would still say it's pretty early, right? This was done with the intent of a long-term strategy. But yes, we're still on track for the 50% that we talked about in the outlook period.

是的。我想說我們仍然在軌道上並在線重申我們談到的 50% 的複合年增長率。但是詹姆斯，我還是會說現在還很早，對吧？這樣做是出於長期戰略的目的。但是，是的，我們仍有望實現我們在展望期內談到的 50%。

Our next question comes from the line of Rod Lache of Wolfe Research.

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

This is Shreyas Patil on for Rod. I just wanted to come back to the question on the energy spend. If I looked at your sustainability report from 2020, which was the last one I was able to find, I believe in there, you mentioned that your global electricity spend was something like $314 million. So if I'm doing the math on the incremental $290 million, and I think you mentioned about 50% was tied to energy. That's $145 million. I mean is it right to say, therefore, that your energy spend is up something like 50%? Or is that not the right baseline?

這是羅德的 Shreyas Patil。我只是想回到關於能源消耗的問題。如果我查看了你們 2020 年的可持續發展報告，這是我能找到的最後一份報告，我相信，你們提到你們的全球電力支出約為 3.14 億美元。因此，如果我對增加的 2.9 億美元進行數學計算，我想你提到大約 50% 與能源有關。那是1.45億美元。因此，我的意思是說你的能源消耗增加了 50% 左右是正確的嗎？或者這不是正確的基線？

Yes. Maybe I think it's a very good analysis. When we're talking about energy costs, what we've included in that number includes energy charges that are being passed through to us in the form of surcharges from our sub-suppliers. So our -- the baseline on the -- that we're using on the electricity side makes sense. What we're also including in that number would be nat-gas, oil, basically, and surcharges. So we do have much more increases rather than just electricity included in that number you mentioned.

是的。也許我認為這是一個很好的分析。當我們談論能源成本時，我們在這個數字中包括的能源費用包括從我們的次級供應商以附加費的形式傳遞給我們的能源費用。因此，我們在電力方面使用的基線是有意義的。我們還包括在這個數字中的基本上是天然氣、石油和附加費。所以我們確實有更多的增加，而不僅僅是你提到的那個數字中包含的電力。

Okay. Understood.

好的。明白了。

I think important and also you've got to look at the sales that you might have had in 2020 versus the sales we are having now could be different and also just not electricity, but gas and others, like Pat mentioned.

我認為很重要，而且你必須看看你在 2020 年可能擁有的銷售額與我們現在擁有的銷售額可能會有所不同，而且不僅僅是電力，而是天然氣和其他，就像 Pat 提到的那樣。

Okay. Understood. And then just to clarify on the lost revenue in Russia, I mean, is there -- is it right that we should be assuming kind of like a typical decremental margin on that? Or would it be more so because the plants are completely idle at this point? I just wanted to clarify that.

好的。明白了。然後只是為了澄清俄羅斯的收入損失，我的意思是，我們應該假設一種典型的遞減利潤是否正確？還是會因為此時植物完全閒置而更是如此？我只是想澄清一下。

We're not going to comment specifically on 1 country, to be honest. It's -- the decremental, we have $400 million of sales. I think Chris's back-the-envelope calculation probably wasn't far off from earlier. But it's not a normal situation, but I wouldn't say it's material -- materially going to be different one way up or down.

老實說，我們不會具體評論 1 個國家/地區。這是 - 遞減，我們有 4 億美元的銷售額。我認為 Chris 的粗略計算可能與之前相差不遠。但這不是一種正常的情況，但我不會說它是物質的——實質上會以一種方式向上或向下不同。

And our next question comes from the line of Brian Johnson of Barclays.

我們的下一個問題來自巴克萊銀行的布萊恩約翰遜。

Yes. I want to talk -- I don't want to get into the 290 and plus and minuses, but more want to get your discussion of the managerial processes that you're pursuing to make sure that the offsets because you did say the $290 million was a net number. And I'm really kind of thinking about 3 levels of Magna, just given how solid an operator you've been over the years. First, how, given your profit setter goals at the plant manager levels, do those individuals get involved in those discussions. Two, given the OEMs will be serving will be served by multiple of your plans across multiple of our product lines, how does that come up the segment? And in particular, that Vince and (inaudible) getting involved in those discussions. Are you writing like a program management office around inflationary input costs?

是的。我想談談——我不想進入 290 和優缺點，但更希望讓你討論你正在追求的管理流程，以確保抵消，因為你確實說過 2.9 億美元是一個淨數。而且我真的在考慮麥格納的 3 個級別，只是考慮到你多年來一直是一個多麼可靠的操作員。首先，考慮到工廠經理級別的利潤制定者目標，這些人如何參與這些討論。第二，鑑於原始設備製造商將通過我們多個產品線的多個計劃提供服務，這對細分市場有何影響？特別是，文斯和（聽不清）參與了這些討論。您是否像一個項目管理辦公室一樣圍繞通貨膨脹的投入成本寫作？

And then third, when you talk about the contracts going forward, we did have 1 supplier earlier who had extensive operations in Brazil, talked about perhaps going to the South American model of just indexing everything, wages, freight, food in the cafeteria and then sitting down with OEMs on a monthly basis and getting recoveries. And when you talk about new contract forms going forward, would there be any movement to embedding Cola type increases across a variety of factors?

第三，當你談到未來的合同時，我們之前確實有 1 家供應商在巴西開展了廣泛的業務，談到可能會採用南美模式，將所有東西、工資、運費、自助餐廳的食物編入索引，然後每月與原始設備製造商坐下來並獲得恢復。當你談到未來的新合同形式時，是否會在各種因素中嵌入可樂類型的增加？

Brian, great question. If you look at some of the operational activities that you talked about, from a plant or division level, obviously, there is a inherent tactical focus on an everyday basis. As we continue to work through the uncertainties that we're all talking about, each of the product line has that highly focused approach from a what's happening at every division and what does it mean to their product line. But it just doesn't stop there like we did in -- over the last 2 years, when there is an industry-wide variable like we're talking, whether it's commodity or freight or inflation, we as a management team, with all the group leadership and Magna leadership, go through this on a monthly basis at the minimum. And if there is some other topics that do come up, the senior leaders take a Magna-wide approach so that there is lessons learned and how we share across.

布賴恩，好問題。如果您從工廠或部門級別查看您談到的一些運營活動，顯然，每天都有固有的戰術重點。隨著我們繼續解決我們都在談論的不確定性，每個產品線都有高度集中的方法，從每個部門發生的事情以及這對他們的產品線意味著什麼。但它並沒有像我們那樣止步於此——在過去的 2 年裡，當有一個像我們所說的全行業變量時，無論是商品、貨運還是通貨膨脹，我們作為一個管理團隊，所有集團領導層和 Magna 領導層至少每月進行一次。如果確實出現了其他一些話題，高級領導者會採取 Magna 範圍內的方法，以便吸取經驗教訓以及我們如何分享。

Now talking about the coding, obviously, you cannot do a black and white, turn the switch on and off, but we continue our discussions with customers at various levels are almost on a daily basis and their ongoing discussions there. I would say they're open and transparent. Some of them are tough, and we bring the data in the rationale, and we will continue to stay focused on it to close all the items that we have. Going forward, though, I think I've said this a couple of times today, we will try to reflect the new economics in our primary markets in North America and Europe, inflation has been stable and modest for a long time as an example. But now it's high, and we have had some success in securing recoveries related to inflation, including with some of our global customers.

現在談論編碼，顯然，你不能做一個黑白的，打開和關閉開關，但我們繼續與各個級別的客戶進行討論，幾乎每天都在進行討論。我會說他們是公開透明的。其中一些是艱難的，我們將數據納入理由，我們將繼續專注於它以關閉我們擁有的所有項目。不過，展望未來，我想我今天已經說過幾次了，我們將嘗試在北美和歐洲的主要市場反映新的經濟狀況，例如通脹在很長一段時間內一直穩定溫和。但現在它很高，我們在確保與通脹相關的複蘇方面取得了一些成功，包括我們的一些全球客戶。

Now that's a little bit different in the environment in these primary markets. We are looking at different arrangements going forward to see how we can recover the increased costs. So it's a mix of things. They're tactical and every day plus the strategic view of how to incorporate some of these in the framework going forward.

現在，這些主要市場的環境略有不同。我們正在研究未來的不同安排，以了解如何收回增加的成本。所以這是一個混合的東西。它們是戰術性的，而且每天都有關於如何將其中一些納入未來框架的戰略觀點。

And our final question comes from the line of Michael Glen of Raymond James.

我們的最後一個問題來自雷蒙德詹姆斯的邁克爾格倫。

Just on the overall margin reduction, can you just give a characterization how much of the decrease related to your European business versus your North American business?

就整體利潤率下降而言，您能否描述一下與您的歐洲業務和北美業務相關的下降幅度有多大？

Mike, it's Pat. I wouldn't say we don't report on a geographic basis to be fair. So I think the analysis we focus on reflects the way we're managing the business, which is by our product categories. And I think that's fully reflected in the in the numbers.

邁克，是帕特。為了公平起見，我不會說我們不按地域進行報告。所以我認為我們關注的分析反映了我們管理業務的方式，即我們的產品類別。我認為這完全反映在數字中。

Volumes are down pretty significantly in Europe, and a lot of the energy is Europe related. So there's -- it's hard to quantify that impact. There's a fair chunk of it. I think that's a European impact.

歐洲的交易量大幅下降，而且很多能源與歐洲有關。所以有 - 很難量化這種影響。有相當大的一部分。我認為這是歐洲的影響。

Okay. And then just overall, can you characterize like in terms of what you're seeing communicated from your customers in Europe versus your customers in North America, just how different are the environments and the outlook progressing?

好的。然後總體而言，您能否根據您從歐洲客戶與北美客戶的交流中看到的情況來描述環境和前景的發展有何不同？

Sorry, Mike, in what sense what do you mean exactly, sorry?

對不起，邁克，你到底是什麼意思，對不起？

Like how bad is Europe relative to North America?

就像歐洲相對於北美有多糟糕？

I think our outlook from February to where we are today, I would say Europe is struggling more than North America more broadly on an industry, not necessarily just a Magna issue. So if you think of the -- the most significant impact that's happened in the quarter is obviously the invasion of Ukraine. And Western Europe -- so when you think about volume guidance in Europe broadly, we've taken out 100% of volumes in Russia for our customers for the balance of 2022. So that's a Russia -- that's a European impact.

我認為我們從 2 月到今天的前景，我想說歐洲在一個行業上比北美更廣泛地掙扎，而不僅僅是麥格納問題。因此，如果您考慮 - 本季度發生的最重大影響顯然是對烏克蘭的入侵。還有西歐——所以當你廣泛地考慮歐洲的銷量指導時，我們已經為我們的客戶在 2022 年剩餘時間里為我們的客戶提取了 100% 的俄羅斯銷量。所以這就是俄羅斯——這就是歐洲的影響。

The second disproportionate impact that's happening with Europe versus North America is the supply chain issues, primarily on product coming out of Ukraine disproportionately hits our European customers as well. So you'll see that's the second hit to volumes that we've taken in Europe relative to North America. We did take volumes down somewhat in North America, but to a much lesser extent.

歐洲與北美髮生的第二個不成比例的影響是供應鏈問題，主要是來自烏克蘭的產品也對我們的歐洲客戶造成了不成比例的影響。所以你會看到這是我們在歐洲相對於北美的銷量第二次受到打擊。我們確實在北美有所減少，但幅度要小得多。

The third piece, I would say, on the input side is the input costs are disproportionately hitting Europe, primarily on the energy side. And again, that's driven to a great extent by the energy -- Western Europe -- Germany and Austria, in particular, relying on their energy from Russia.

我想說的第三部分是投入方面的投入成本不成比例地衝擊歐洲，主要是在能源方面。再一次，這在很大程度上是由能源驅動的——西歐——德國和奧地利，特別是依賴俄羅斯的能源。

And there are no further questions in the queue. Mr. Kotagiri, I'll now turn the call back to you. Please continue.

隊列中沒有其他問題。 Kotagiri 先生，我現在將電話轉回給您。請繼續。

Thanks, everyone, for listening in to say the least challenging times, but we remain focused on managing the aspects under our control and investing to position us for the future. Enjoy the rest of the day, and hope to see most of you on May 10. Thank you.

感謝大家傾聽，說出最具挑戰性的時期，但我們仍然專注於管理我們控制的方面，並為我們的未來進行投資。盡情享受這一天，並希望在 5 月 10 日見到你們中的大多數人。謝謝。

And that does conclude today's presentation. We do thank you for your participation and ask that you please disconnect your lines. Have a great rest of the day and a great weekend, everyone.

今天的演講到此結束。我們非常感謝您的參與，並要求您斷開您的線路。祝大家休息愉快，週末愉快。