3M (MMM) 2019 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the 3M Second Quarter Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded, Thursday, July 25, 2019.

女士們，先生們，謝謝你們的支持。歡迎參加 3M 第二季度收益電話會議。 （操作員說明）提醒一下，本次會議將於 2019 年 7 月 25 日星期四進行錄製。

I would now like to turn the call over to Bruce Jermeland, Vice President of Investor Relations at 3M.

我現在想把電話轉給 3M 投資者關係副總裁 Bruce Jermeland。

Thank you, and good morning, everyone. Welcome to our second quarter 2019 business review. With me today are Mike Roman, 3M's Chairman and Chief Executive Officer; and Nick Gangestad, our Chief Financial Officer. Mike and Nick will make some formal comments, and then we'll take your questions.

謝謝大家，早上好。歡迎閱讀我們的 2019 年第二季度業務回顧。今天和我在一起的有 3M 董事長兼首席執行官 Mike Roman；和我們的首席財務官 Nick Gangestad。 Mike 和Nick 將發表一些正式意見，然後我們將回答您的問題。

Today's earnings release and slide presentation accompanying this call are posted on our Investor Relations website at 3m.com under the heading Quarterly Earnings. Please note, we are reporting our results under our New Business group structure, starting with the second quarter. Additional business group performance details can be found in the appendix of this presentation along with our May 30 8-K and our Investor Relations website.

本次電話會議隨附的今天的收益發布和幻燈片演示發佈在我們投資者關係網站 3m.com 的“季度收益”標題下。請注意，從第二季度開始，我們將根據我們的新業務集團結構報告我們的業績。可以在本演示文稿的附錄以及我們的 5 月 30 日 8-K 和我們的投資者關係網站中找到其他業務集團的業績詳情。

Lastly, let me remind you to mark your calendars for our third quarter earnings call, which will take place on Thursday, October 24.

最後，讓我提醒您在日曆上標記我們將於 10 月 24 日星期四舉行的第三季度財報電話會議。

Please take a moment to read the forward-looking statement on Slide 2. During today's conference call, we will make certain predictive statements that reflect our current views about 3M's future performance and financial results. These statements are based on certain assumptions and expectations of future events that are subject to risks and uncertainties. Item 1A of our most recent Form 10-K lists some of the most important risk factors that could cause actual results to differ from our predictions.

請花點時間閱讀幻燈片 2 上的前瞻性聲明。在今天的電話會議中，我們將做出某些預測性聲明，以反映我們目前對 3M 未來業績和財務業績的看法。這些陳述基於某些假設和對未來事件的預期，這些事件受到風險和不確定性的影響。我們最新的 10-K 表格的第 1A 項列出了一些可能導致實際結果與我們的預測不同的最重要的風險因素。

Finally, please note that throughout today's presentation, we'll be making references to certain non-GAAP financial measures, in particular, measures which exclude the impact of the deconsolidation of our Venezuelan subsidiary. Reconciliations of the non-GAAP measures can be found in the appendix of today's presentation and press release.

最後，請注意，在今天的整個演講中，我們將參考某些非 GAAP 財務措施，特別是排除我們委內瑞拉子公司分拆影響的措施。非 GAAP 措施的對賬可在今天的演示文稿和新聞稿的附錄中找到。

Please turn to Slide 3, and I'll hand it off to Mike. Mike?

請轉到幻燈片 3，我會把它交給 Mike。麥克風？

Thank you, Bruce. Good morning, everyone, and thank you for joining us.

謝謝你，布魯斯。大家早上好，感謝您加入我們。

I am encouraged by our company's progress and performance in the second quarter, coming off a difficult start to the year. While we continued to face slow growth conditions in key end markets, our execution was strong. We implemented our restructuring while effectively managing costs and reducing inventory levels, which I will discuss on the next slide. Our team is building momentum going into the second half as we focus on what we control. And as a result, today, we are affirming our guidance for the full year.

我對我們公司在第二季度取得的進展和業績感到鼓舞，今年開局艱難。雖然我們在關鍵終端市場繼續面臨緩慢的增長條件，但我們的執行力很強。我們實施了重組，同時有效地管理成本並降低了庫存水平，我將在下一張幻燈片中對此進行討論。當我們專注於我們控制的事情時，我們的團隊正在建立進入下半場的勢頭。因此，今天，我們確認了全年的指導方針。

At the same time, we remain focused on our 4 priorities for long-term value creation: portfolio, transformation, innovation and people and culture. In the second quarter, this included our acquisition of Acelity, an excellent complement to our Health Care portfolio and which we expect to close in the fourth quarter.

與此同時，我們仍然專注於創造長期價值的 4 個優先事項：投資組合、轉型、創新以及人員和文化。在第二季度，這包括我們對 Acelity 的收購，這是對我們醫療保健產品組合的極好補充，我們預計將在第四季度完成收購。

Please turn to Slide 4. As you recall, on our last earnings call, we laid out specific and aggressive actions to strengthen our performance. In the second quarter, we made significant progress with each of those actions. First, the restructuring has been finalized across the enterprise, which resulted in a pretax charge of $148 million. We continue to expect annual savings of $225 million to $250 million, with $110 million in the remainder of this year. Beyond the restructuring, we are driving increased cash flow through several other actions. For example, we adjusted our manufacturing output and reduced inventory levels by over $250 million in the quarter. We also curtailed indirect costs by more than $80 million year-over-year.

請轉到幻燈片 4。您還記得，在我們上次的財報電話會議上，我們制定了具體而積極的行動來加強我們的業績。在第二季度，我們在每一項行動上都取得了重大進展。首先，整個企業的重組已經完成，產生了 1.48 億美元的稅前費用。我們繼續預計每年可節省 2.25 億美元至 2.5 億美元，今年剩餘時間將節省 1.1 億美元。除了重組之外，我們還通過其他幾項行動推動現金流的增加。例如，我們在本季度調整了製造產出並將庫存水平降低了 2.5 億美元以上。我們還削減了超過 8000 萬美元的間接成本。

While we are making positive strides in our operations, there is still more to do. And we will remain focused on managing costs and improving productivity. As we do this, we will continue to invest in organic growth through research and development and CapEx to deliver on our promise to innovate for our customers.

雖然我們在運營方面取得了積極進展，但還有更多工作要做。我們將繼續專注於管理成本和提高生產力。在我們這樣做的同時，我們將繼續通過研發和資本支出投資於有機增長，以兌現我們為客戶創新的承諾。

Please turn to Slide 5 for a summary of our second quarter. Organic growth company-wide was minus 1%, in line with our expectations. Growth was led by our Health Care business at 4%, which was a good improvement versus Q1, and Consumer grew 1%. We saw a continued end market softness in China, automotive and electronics, which tempered growth in our other 2 businesses. Growth in Safety and Industrial declined by 5% while Transportation and Electronics was down 1%.

請轉到幻燈片 5，了解我們第二季度的摘要。全公司的有機增長為負 1%，符合我們的預期。我們的醫療保健業務以 4% 的增長率領先，與第一季度相比有了很大的改善，消費者業務增長了 1%。我們看到中國、汽車和電子產品的終端市場持續疲軟，這抑制了我們其他 2 項業務的增長。安全和工業增長下降了 5%，而運輸和電子下降了 1%。

With respect to EPS, we posted adjusted earnings of $2.20 per share, which includes a $0.21 charge for restructuring and a $0.07 benefit from a pending divestiture, which Nick will cover in his remarks.

關於每股收益，我們公佈的調整後每股收益為 2.20 美元，其中包括 0.21 美元的重組費用和 0.07 美元的待定資產剝離收益，尼克將在他的評論中提及。

Underlying margins were 22.2%, which excludes 140 basis points of impact from the restructuring. So we are making good progress relative to our Q1 margins, up 21.4%. Importantly, we delivered this improved margin performance even while reducing production and inventory, which reflects the strength of the 3M value model.

基本利潤率為 22.2%，不包括重組帶來的 140 個基點的影響。因此，相對於第一季度的利潤率，我們取得了良好的進展，增長了 21.4%。重要的是，即使在減少產量和庫存的同時，我們也實現了這種改進的利潤率表現，這反映了 3M 價值模型的優勢。

I want to take this opportunity to thank our people for rising to the occasion and for executing our plans with focus and urgency. And while there is more work left to do, 3M's foundation remains strong. We have deep competitive advantages, incredible technology platforms, advanced manufacturing, global capabilities and leading brands. We have market-leading businesses and strong relationships with our customers. Moving ahead, we are focused on investing for the future and continuing to deliver operational improvements, which will enable us to better serve our customers and maximize value for all of our stakeholders.

我想藉此機會感謝我們的員工挺身而出，專注而緊迫地執行我們的計劃。儘管還有更多工作要做，但 3M 的基礎依然牢固。我們擁有深厚的競爭優勢、令人難以置信的技術平台、先進的製造、全球能力和領先的品牌。我們擁有市場領先的業務，並與客戶建立了牢固的關係。展望未來，我們專注於為未來投資並繼續改進運營，這將使我們能夠更好地為客戶服務並為所有利益相關者實現價值最大化。

That wraps up my opening comments. I will come back to discuss our guidance after Nick takes you through the details of the quarter. Nick?

我的開場白到此結束。在 Nick 帶您了解本季度的詳細信息後，我將回來討論我們的指導意見。缺口？

Thank you, Mike, and good morning, everyone.

謝謝邁克，大家早上好。

Please turn to Slide 6. Second quarter organic sales declined 0.9%, in line with our expectations. Volumes were down 140 basis points, while selling prices were up 50 basis points. The net impact of acquisitions and divestitures increased sales by 10 basis points, while foreign currency translation was a 180 basis point headwind to sales. All in, second quarter sales in U.S. dollars declined 2.6% versus last year.

請轉到幻燈片 6。第二季度有機銷售額下降 0.9%，符合我們的預期。成交量下降了 140 個基點，而售價上漲了 50 個基點。收購和剝離的淨影響使銷售額增加了 10 個基點，而外幣換算對銷售額造成了 180 個基點的不利影響。總而言之，以美元計算的第二季度銷售額與去年同期相比下降了 2.6%。

Looking at growth geographically, the U.S. was flat organically versus last year's 6% comparison. Last year's second quarter was boosted by increased customer demand ahead of our U.S. ERP go-live. Health Care grew mid-single digits, with Consumer up low single digits. Transportation and Electronics was flat while Safety and Industrial declined.

從地域來看，美國的有機增長與去年的 6% 持平。在我們的美國 ERP 上線之前，客戶需求的增加推動了去年第二季度的增長。醫療保健增長了中個位數，消費者增長了低個位數。運輸和電子持平，而安全和工業則下跌。

Asia Pacific declined 90 basis points in Q2, with Health Care delivering positive mid-single-digit organic growth, while each of our other business groups declined. Organic growth in China was down 80 basis points with growth in Health Care and Transportation and Electronics, which was more than offset by declines in Safety and Industrial and Consumer. For the year, we now expect organic growth in China to be down low to mid-single digits versus a prior expectation of flat as we continue to experience challenging end market conditions, particularly in the electronics and automotive industries. EMEA declined 3.6% on a nearly 6% comparison in last year's second quarter. Latin America/Canada grew 70 basis points, with Brazil, Canada and Mexico each up low single digits.

亞太地區在第二季度下降了 90 個基點，其中醫療保健實現了正的中個位數有機增長，而我們的其他每個業務集團都出現了下滑。中國的有機增長下降了 80 個基點，醫療保健、交通運輸和電子領域的增長被安全、工業和消費品領域的下滑所抵消。對於今年，我們現在預計中國的有機增長將下降到中等個位數，而之前的預期是持平，因為我們繼續經歷具有挑戰性的終端市場條件，特別是在電子和汽車行業。與去年第二季度相比，歐洲、中東和非洲地區下降了近 6%，下降了 3.6%。拉丁美洲/加拿大增長了 70 個基點，巴西、加拿大和墨西哥均增長了低個位數。

Please turn to Slide 7 for the second quarter P&L highlights. Company-wide second quarter sales were $8.2 billion, with operating income of $1.7 billion. Operating margins were 20.8%, which included a 140 basis point impact from our second quarter restructuring and other actions. As anticipated, the biggest impact to Q2 operating margins was the year-on-year decline in organic volume, along with cost absorption penalties from lower production volumes as all business groups worked to reduce inventories in the quarter. These factors resulted in a 200 basis point reduction to margins versus last year's second quarter.

請轉到幻燈片 7 了解第二季度損益亮點。全公司第二季度銷售額為 82 億美元，營業收入為 17 億美元。營業利潤率為 20.8%，其中包括我們第二季度重組和其他行動帶來的 140 個基點的影響。正如預期的那樣，對第二季度營業利潤率的最大影響是有機銷量同比下降，以及由於所有業務部門都在本季度努力減少庫存而導致產量下降帶來的成本吸收處罰。這些因素導致利潤率與去年第二季度相比下降了 200 個基點。

Acquisitions and divestitures combined brought down margins by 50 basis points, primarily due to the acquisition of M*Modal. Higher selling prices continued to more than offset raw material inflation, contributing 30 basis points to second quarter margins. For the year, we continue to expect selling prices to more than offset raw material costs. And finally, foreign currency, net of hedging impacts, increased margins by 40 basis points.

收購和資產剝離共同使利潤率下降了 50 個基點，這主要是由於收購了 M*Modal。更高的售價繼續抵消了原材料價格上漲的影響，為第二季度的利潤率貢獻了 30 個基點。今年，我們繼續預計售價將超過原材料成本。最後，扣除對沖影響後的外匯利潤率增加了 40 個基點。

Let's now turn to Slide 8 for a closer look at earnings per share. Second quarter adjusted earnings were $2.20 per share. That was a bit better than we anticipated, primarily due to improved productivity, along with the held-for-sale status related to a pending divestiture, which I will cover shortly.

現在讓我們轉到幻燈片 8 仔細查看每股收益。第二季度調整後每股收益為 2.20 美元。這比我們預期的要好一些，這主要是由於生產力的提高，以及與即將進行的資產剝離相關的待售狀態，我將在稍後介紹。

Let me now cover the reconciling items to second quarter earnings. Negative organic growth, along with absorption penalties from lower production and inventory levels, reduced per share earnings by $0.19 in the quarter. Acquisitions and divestitures combined increased second quarter earnings by $0.01 per share versus last year. This result includes a $0.07 tax benefit related to the held-for-sale status of the pending divestiture of the gas and flame detection business that we announced in June. Restructuring and other actions lowered Q2 earnings per share by $0.21. Our second quarter underlying tax rate was higher year-on-year, which decreased earnings by $0.07 per share. And finally, we reduced average diluted shares outstanding by 3% versus Q2 last year, which added $0.07 to per share earnings.

現在讓我介紹與第二季度收益的協調項目。負有機增長，以及較低的生產和庫存水平帶來的吸收懲罰，導致本季度每股收益減少 0.19 美元。收購和剝離使第二季度每股收益與去年同期相比增加了 0.01 美元。這一結果包括 0.07 美元的稅收優惠，與我們在 6 月份宣布的待剝離氣體和火焰檢測業務的待售狀態相關。重組和其他行動使第二季度每股收益降低了 0.21 美元。我們第二季度的基本稅率同比較高，導致每股收益減少 0.07 美元。最後，與去年第二季度相比，我們將平均稀釋流通股減少了 3%，這使每股收益增加了 0.07 美元。

Please turn to Slide 9 for a look at our cash flow performance. Second quarter free cash flow was $1.2 billion, with a free cash flow conversion rate of 110%, which includes a 14 percentage point benefit from the deconsolidation of our Venezuelan subsidiary.

請轉到幻燈片 9 查看我們的現金流量表現。第二季度自由現金流為 12 億美元，自由現金流轉換率為 110%，其中包括我們委內瑞拉子公司分拆帶來的 14 個百分點的收益。

Second quarter capital expenditures were $421 million, up $56 million year-on-year. For the full year, we continue to anticipate CapEx investments in the range of $1.6 billion to $1.7 billion. During the quarter, we paid $830 million in cash dividends to shareholders and returned $400 million to shareholders through gross share repurchases. We continue to expect full year repurchases to be in the range of $1 billion to $1.5 billion.

第二季度資本支出為 4.21 億美元，同比增加 5600 萬美元。對於全年，我們繼續預計資本支出將在 16 億至 17 億美元之間。本季度，我們向股東支付了 8.3 億美元的現金股息，並通過股票回購總額向股東返還了 4 億美元。我們繼續預計全年回購將在 10 億至 15 億美元之間。

Please turn to Slide 10, where I will summarize the business group performance for Q2. I will start with our Safety and Industrial business, which declined 5% in the quarter. Similar to first quarter, we saw a continued broad-based softness and channel inventory reductions across most of the portfolio. These factors particularly impacted our automotive aftermarket, abrasives and closure and masking systems businesses. Personal safety was up low single digits in Q2 against a double-digit comparison a year ago, and roofing granules turned positive this quarter, growing low single digits organically.

請翻到幻燈片 10，我將在其中總結第二季度的業務集團業績。我將從我們的安全和工業業務開始，該業務在本季度下降了 5%。與第一季度類似，我們看到大部分產品組合持續普遍疲軟和渠道庫存減少。這些因素特別影響了我們的汽車售後市場、磨料和封閉及遮蔽系統業務。與一年前的兩位數相比，Q2 的人身安全增長低個位數，本季度屋頂顆粒轉為正值，有機增長低個位數。

Looking geographically, Safety and Industrial's organic growth was led by a 1% increase in Latin America/Canada, while Asia Pacific, EMEA and the U.S. each declined.

從地域上看，安全和工業的有機增長由拉丁美洲/加拿大 1% 的增長帶動，而亞太地區、歐洲、中東和非洲和美國均有所下降。

Safety and Industrial's second quarter operating margins were 22.1%, with an underlying decline of approximately 200 basis points. Margins were impacted by negative organic growth, reductions in manufacturing output and inventory, along with our second quarter restructuring actions.

Safety and Industrial 第二季度營業利潤率為 22.1%，基礎下降約 200 個基點。利潤率受到負有機增長、製造業產出和庫存減少以及我們第二季度重組行動的影響。

Moving to Transportation and Electronics. Second quarter sales were down 120 basis points organically compared to last year. The electronics-related businesses were down low single digits organically, with growth in display material systems more than offset by declines in electronics materials solutions. Our automotive OEM business was down 5% year-on-year, impacted by a 7% decline in second quarter global car and light truck builds. Commercial solutions declined mid-single digits against last year's strong comp. Transportation safety was up mid-single digits, and advanced materials continued to deliver strong organic growth, up high single digits in the quarter. Geographically, organic growth was flat in both the U.S. and Latin America/Canada, while Asia Pacific and EMEA declined.

轉向運輸和電子。與去年同期相比，第二季度銷售額有機下降 120 個基點。電子相關業務有機地下降了個位數，顯示材料系統的增長被電子材料解決方案的下降所抵消。我們的汽車 OEM 業務同比下降 5%，受到第二季度全球汽車和輕型卡車產量下降 7% 的影響。商業解決方案與去年的強勁競爭相比下降了中個位數。運輸安全增長了中個位數，先進材料繼續實現強勁的有機增長，本季度增長了高個位數。從地域上看，美國和拉丁美洲/加拿大的有機增長持平，而亞太地區和歐洲、中東和非洲地區則有所下降。

Transportation and Electronics' second quarter operating margins were 24.1%, down 240 basis points. Similar to Safety and Industrial, margins were impacted by manufacturing and inventory reductions, along with a 30 basis point impact from restructuring.

運輸和電子第二季度營業利潤率為 24.1%，下降 240 個基點。與安全和工業類似，利潤率受到製造和庫存減少的影響，以及重組帶來的 30 個基點的影響。

Turning to Health Care. As anticipated, this business improved versus first quarter as our team delivered 3.5% organic growth in Q2. Organic growth was broad across most of our Health Care business, led by a high single-digit increase in health information systems. Medical solutions, our largest business in Health Care, was up mid-single digits, and we continue to look forward to Acelity becoming part of this business later this year. Food safety grew organically mid-single digits, with oral care up low single digits. Finally, drug delivery was down mid-single digits, in line with our expectations. On a geographic basis, Asia Pacific and the U.S. led the way, each up mid-single digits.

轉向醫療保健。正如預期的那樣，由於我們的團隊在第二季度實現了 3.5% 的有機增長，因此該業務比第一季度有所改善。在醫療信息系統高個位數增長的帶動下，我們大部分醫療保健業務實現了廣泛的有機增長。醫療解決方案是我們在醫療保健領域最大的業務，增長了中個位數，我們繼續期待 Acelity 在今年晚些時候成為該業務的一部分。食品安全有機增長中個位數，口腔護理增長低個位數。最後，藥物輸送量下降了中個位數，符合我們的預期。在地理基礎上，亞太地區和美國處於領先地位，均達到中等個位數。

Health Care's second quarter operating margins were 26.4%, which included a combined 210 basis point impact from the M*Modal acquisition and restructuring.

醫療保健第二季度營業利潤率為 26.4%，其中包括 M*Modal 收購和重組帶來的 210 個基點的綜合影響。

Lastly, second quarter organic growth for our Consumer business was nearly 1%. Sales grew low single digits in consumer health care, stationery and office and home improvement, while home care declined.

最後，我們消費者業務的第二季度有機增長接近 1%。消費者保健、文具和辦公室以及家居裝修的銷售額增長低個位數，而家庭護理則有所下降。

Looking at Consumer geographically, organic growth was led by a 2% increase in the U.S. and Latin America/Canada, while Asia Pacific and EMEA declined.

從地理區域來看消費者，有機增長由美國和拉丁美洲/加拿大 2% 的增長帶動，而亞太地區和歐洲、中東和非洲地區則有所下降。

Consumer's operating margins were 20.6% in the second quarter, which included a 40 basis point impact from restructuring.

第二季度消費者的營業利潤率為 20.6%，其中包括重組帶來的 40 個基點的影響。

That wraps up our review of second quarter results. Please turn to Slide 11, and I'll hand it back over to Mike to discuss 2019 guidance. Mike?

我們對第二季度業績的回顧到此結束。請轉到幻燈片 11，我會把它交還給邁克討論 2019 年的指導。麥克風？

Thank you, Nick. Today, we are affirming our guidance for the full year. We expect organic growth of minus 1% to plus 2%, along with adjusted earnings of $9.25 to $9.75 per share. Please note that this guidance does not include the pending Acelity acquisition or the pending divestiture of our gas and flame detection business. We also continue to expect a return on invested capital of 20% to 22% and a free cash flow conversion rate of 95% to 105%. While there's uncertainty in the global macroeconomic environment, we are maintaining our guidance as we will see continued momentum from the actions we implemented in the first half.

謝謝你，尼克。今天，我們確認了全年的指導方針。我們預計有機增長為負 1% 至正 2%，調整後每股收益為 9.25 美元至 9.75 美元。請注意，本指南不包括即將進行的 Acelity 收購或即將剝離的氣體和火焰檢測業務。我們還繼續預計投資資本回報率為 20% 至 22%，自由現金流轉換率為 95% 至 105%。儘管全球宏觀經濟環境存在不確定性，但我們將維持我們的指引不變，因為我們將看到上半年實施的行動將繼續保持勢頭。

Before turning to Q&A, I would like to address a topic that is top of mind, which is PFAS, specifically PFOA and PFOS, which are the subject of the litigation we face. As CEO, there are a few things that I want people to know about this issue and our company. First, 3M voluntarily phased out of the production of PFOA and PFOS in the early 2000s and was the first company to do so. Since then, we have been committed to using our expertise and resources to improve the knowledge of PFAS, support remediation and give people confidence in their water. 3M has invested $100 million in testing water sources. We have invested another $50 million for filtration systems as these substances can be effectively removed, which 3M has been doing for more than a decade.

在轉向問答環節之前，我想談談一個最重要的話題，即 PFAS，特別是 PFOA 和 PFOS，它們是我們面臨的訴訟主題。作為首席執行官，我希望人們了解這個問題和我們公司的一些事情。首先，3M 在 2000 年代初期自願逐步停止生產 PFOA 和 PFOS，並且是第一家這樣做的公司。從那時起，我們一直致力於利用我們的專業知識和資源來提高對 PFAS 的了解，支持修復並讓人們對水充滿信心。 3M 已投資 1 億美元用於測試水源。我們又投資了 5000 萬美元用於過濾系統，因為這些物質可以有效去除，這也是 3M 十多年來一直在做的事情。

We have entered into voluntary agreements with states and communities where we manufacture these compounds. We have also contributed to peer-reviewed journals, backed by hundreds of studies conducted by 3M and other researchers on the potential effects of PFAS. At the same time, we are continuing to work with the EPA, along with state and local governments, to support thoughtful regulations and solutions based on science and facts. We also believe that an independent scientific body should partner with regulators to review all available studies to enhance the quality of decisions. And while the understanding of PFAS continues to evolve, the scientific evidence does not show that PFAS cause harm to people at past or current exposure levels.

我們已經與我們生產這些化合物的州和社區簽訂了自願協議。在 3M 和其他研究人員就 PFAS 的潛在影響進行的數百項研究的支持下，我們還為同行評審的期刊做出了貢獻。與此同時，我們將繼續與 EPA 以及州和地方政府合作，支持基於科學和事實的深思熟慮的法規和解決方案。我們還認為，獨立的科學機構應該與監管機構合作，審查所有可用的研究，以提高決策質量。雖然對 PFAS 的理解不斷發展，但科學證據並未表明 PFAS 在過去或當前的接觸水平下對人們造成傷害。

More broadly speaking, being an environmentally responsible company is core to 3M. We started our groundbreaking Pollution Prevention Pays program more than 40 years ago, and we continue to step up our leadership to address climate and environmental challenges. Earlier this year, we committed to move our entire global operations to renewable energy. And last year alone, 3M solutions helped our customers avoid 15 million tonnes of emissions. Sustainability is a value that matters deeply to our people, to our customers and to me personally. It is a point of pride for 3M, and we will defend with vigor our company's reputation in the court of law and in the court of public opinion.

更廣泛地說，成為一家對環境負責的公司是 3M 的核心。 40 多年前，我們開始了開創性的污染防治付費計劃，並且我們繼續加強我們的領導力，以應對氣候和環境挑戰。今年早些時候，我們承諾將我們的整個全球業務轉向可再生能源。僅去年一年，3M 解決方案就幫助我們的客戶避免了 1500 萬噸的排放。可持續發展是一種對我們的員工、客戶和我個人都非常重要的價值觀。這是 3M 的驕傲，我們將在法庭和輿論法庭上積極捍衛我們公司的聲譽。

That concludes our prepared remarks, and we will now take your questions.

我們準備好的發言到此結束，現在我們將回答您的問題。

(Operator Instructions) And our first question comes from the line of Andrew Kaplowitz of Citi.

（操作員說明）我們的第一個問題來自花旗銀行的 Andrew Kaplowitz。

Mike or Nick, can you talk about the cadence of the quarter as it went on? Some industrial companies have talked about a bit of a stabilization late in Q2. Did you see that at all in Safety and Industrial or Transportation and Electronics? And last quarter, you said destocking in some of your customers cost you something like 100 basis points of revenue growth, with similar impact in Q2 as it does look like your auto OEM business performed a bit better than the underlying market. So have you seen any signs of industrial or auto destocking just closer to ending?

邁克或尼克，你能談談本季度的節奏嗎？一些工業公司談到了第二季度末的一些穩定。您是否在安全與工業或交通與電子領域看到過這一點？上個季度，你說你的一些客戶去庫存使你的收入增長損失了大約 100 個基點，第二季度的影響類似，因為看起來你的汽車 OEM 業務的表現確實好於基礎市場。那麼，您是否看到任何工業或汽車去庫存即將結束的跡象？

Yes, Andy. Throughout the quarter, the trends were pretty stable as we saw our sales progress through each of the 3 months. I can't say we really discerned any positive or negative trend as the quarter progressed. If I shift it internally, we did see our momentum in terms of reducing production and pulling inventory build as the year went on. In regards to channel inventory, I said about -- last quarter about 100 basis points of what -- the impact of channel destocking. We were again seeing channel destocking impacting us in the second quarter, in particular in the SIBG business, Safety and Industrial Business Group. We think that was a very similar destocking impact to what we saw in the first quarter.

是的，安迪。在整個季度中，趨勢非常穩定，因為我們看到了 3 個月中每個月的銷售進展。我不能說隨著本季度的進展，我們真的發現了任何積極或消極的趨勢。如果我在內部轉移它，我們確實看到了隨著時間的推移我們在減少產量和拉動庫存方面的勢頭。關於渠道庫存，我說過——上個季度大約 100 個基點——渠道去庫存的影響。我們再次看到渠道去庫存在第二季度對我們產生影響，特別是在 SIBG 業務、安全和工業業務集團。我們認為這與我們在第一季度看到的情況非常相似。

And as far as automotive, we were most noticeably impacted by destocking in China. And that just was not the same events in the second quarter. It was a pretty much more normal relation of auto builds to our penetration and less channel destocking going on in relation to auto.

就汽車而言，我們受到中國去庫存的影響最為明顯。這與第二季度的情況不同。汽車製造與我們的滲透率之間的關係更為正常，與汽車相關的渠道去庫存也較少。

Okay. Nick, that's helpful. And then you mentioned in the presentation that you'll save $110 million in the second half of the year at $0.15. You still have to have a decent step-up in EPS in your second half even outside the benefit to make the midpoint of your guide. So how much of the step-up is in your control? Can you give us some more color on how much of your business transformation and statutory optimization initiatives can help you in the second half? I think there'll be programs in terms of savings that are continuing to ramp on second half and in 2020.

好的。尼克，這很有幫助。然後您在演示文稿中提到，您將在今年下半年以 0.15 美元的價格節省 1.1 億美元。即使在收益之外，您仍然必須在下半年有一個不錯的 EPS 提升才能達到指南的中點。那麼，您可以控制多少升壓？您能否進一步說明您的業務轉型和法定優化計劃在下半年可以為您提供多少幫助？我認為在下半年和 2020 年將有繼續增加儲蓄的計劃。

Yes. Andy, a few things are going on. First of all, we have been progressively taking more and more inventory out of our own operations. We think some of that -- that's going to continue into the second half of the year. So that will continue to be a headwind that we're facing in the second half of the year. We will be getting the restructuring benefits of $0.15 that we talked about as well as, I'll just say, overall disciplined cost management in light of a, what we would call a slowing economy right now. So some of that -- our own discipline in execution will be impacting us in the second half.

是的。安迪，有些事情正在發生。首先，我們一直在逐步從我們自己的運營中取出越來越多的庫存。我們認為其中一些 - 這將持續到今年下半年。因此，這將繼續成為我們在今年下半年面臨的不利因素。我們將獲得我們談到的 0.15 美元的重組收益，以及，我只想說，根據我們現在所說的經濟放緩的情況進行整體嚴格的成本管理。所以其中一些 - 我們自己的執行紀律將在下半年影響我們。

On the margin, there are some other things that will impact us. FX, which has been a -- neutral to a headwind in the second -- in the first half of the year, that will be likely -- if FX rates stay where they are, that they will be coming positive to us in the second half of the year. But mainly, it's just going to be improved execution over what we saw in -- particularly in the first quarter.

在邊緣，還有一些其他的事情會影響我們。外彙在今年上半年一直是 - 中性的逆風 - 如果外匯匯率保持在目前的水平，那麼他們將在第二年對我們產生積極影響半年。但主要是，這只會比我們所看到的更好地執行——尤其是在第一季度。

Our next question comes from the line of Joe Ritchie of Goldman Sachs.

我們的下一個問題來自高盛的 Joe Ritchie。

Nick, maybe just kind of staying on the -- how to think about the margins for the rest of the year, obviously, like a big headwind this quarter was the manufacturing and inventory reductions. And you guys have given some estimates for what you expect productivity to be like this year, and clearly, you're also moving ahead with indirect cost reduction. So I don't know, is the right way to think about it as you progress through the year that these things are going to offset each other? Or should we be thinking about them as a tailwind? I'm just trying to understand how to think this through.

尼克，也許只是停留在 - 如何考慮今年剩餘時間的利潤率，顯然，本季度的一大逆風是製造和庫存減少。你們已經對今年的生產力做出了一些估計，很明顯，你們也在推進間接成本削減。所以我不知道，當你在這一年中進步時，這些事情會相互抵消，這是正確的思考方式嗎？還是我們應該將它們視為順風？我只是想了解如何思考這個問題。

Joe, if I think about where we're going to end for the full year, let me just start out by saying, when I look at, collectively, where all the sell-side analysts are in their view of the total year, my view is it looks like you collectively have it dialed in about right. Like what I'm seeing collectively amongst all of you means it lines up very closely with our own internal view of how things will progress for the full year.

喬，如果我考慮我們將在哪裡結束全年，讓我首先說，當我共同審視所有賣方分析師對全年的看法時，我的看來您的集體撥入是正確的。就像我在你們所有人中間看到的一樣，這意味著它與我們自己對全年事情進展情況的內部看法非常接近。

If I look at -- in particular, in Q3, Joe, right now, we're expecting organic growth in the second quarter to be somewhere between flat to low single-digit organic growth. And as far as margins, what we've been seeing happen throughout the year and what we expect to continue to happen as we progress into Q3, Q1 to Q2, absent the restructuring actions, was a sequential improvement in margins as we focus on execution. We think that sequential improvement going into Q3 is going to continue. So we expect our margins to be 23% or higher in the third quarter. And so what we're seeing there is some momentum building on our margin story.

如果我看 - 特別是在第三季度，喬，現在，我們預計第二季度的有機增長將介於持平和低個位數有機增長之間。就利潤率而言，我們在全年看到的情況以及我們預計隨著我們進入第三季度、第一季度到第二季度而繼續發生的情況，在沒有重組行動的情況下，是我們專注於執行的利潤率連續改善.我們認為進入第三季度的連續改善將繼續下去。因此，我們預計第三季度的利潤率將達到 23% 或更高。因此，我們所看到的是，我們的利潤率故事出現了一些勢頭。

And so I'd say, Joe, those are the headlines to think about in how you're thinking about the second half of the year.

所以我想說，喬，這些是你如何看待下半年的頭條新聞。

Got it. That's -- no, that's super helpful, Nick. And I guess maybe, Mike, very, very helpful commentary earlier on PFAS. I guess just as -- obviously, it's hard to assess how this all shakes out, but I'd be curious to get your views on like timing on when we could think about when we'll start to get some sort of resolution as it continues obviously to be a bit of an overhang on the shares.

知道了。那是——不，這非常有幫助，尼克。我想也許，邁克，早些時候關於 PFAS 的評論非常非常有用。我想——顯然，很難評估這一切是如何發生的，但我很想听聽你對時間的看法，比如我們可以考慮什麼時候開始得到某種解決方案，因為它顯然繼續對股票造成一些影響。

Yes. Joe, I wouldn't think about timing. In respect to timing, let me kind of talk about what we can say today. And it's not a lot, but it'll give you a couple of things to look at. The first trial, if there is a trial, related to the Wolverine cases in Michigan, that's the -- that would be at the end of first quarter. These are kind of fuzzy time lines. They're not fixed. But that's kind of the expectation when the first trial is related, that -- if there is a trial would come to us. AFFF, the MDL, the multi-district litigation, we wouldn't expect any actions on that until late 2020.

是的。喬，我不會考慮時間問題。關於時間安排，讓我談談我們今天可以說些什麼。它不是很多，但它會給你一些要看的東西。第一次審判，如果有審判，與密歇根州的金剛狼案件有關，那將是在第一季度末。這些是一種模糊的時間線。它們不是固定的。但這是與第一次審判相關的期望，即 - 如果有審判會來找我們。 AFFF、MDL、跨地區訴訟，我們預計要到 2020 年底才會對此採取任何行動。

So that -- those are kind of a frame of the litigation and timing. And as we learn more -- as I said in my comments, we're gaining an understanding all the time. As we learn more, we'll update you as we go.

所以 - 這些是訴訟和時間安排的一種框架。隨著我們了解更多——正如我在評論中所說，我們一直在加深了解。隨著我們了解更多，我們會隨時更新您。

Our next question comes from the line of Andrew Obin of Bank of America Merrill Lynch.

我們的下一個問題來自美銀美林的 Andrew Obin。

Can you hear me?

你能聽到我嗎？

Yes.

是的。

Yes.

是的。

Yes. Just a couple of follow-up questions. Could you just walk us through core gross margins ex restructuring sequentially versus the first quarter? And how should we think about progression on that side of the equation through the year? That's the first question.

是的。只是幾個後續問題。您能否介紹一下重組前核心毛利率與第一季度相比的順序？我們應該如何考慮全年在等式那一邊的進展？這是第一個問題。

Okay, Andrew. A little bit of this will be a repeat from what I said to Joe, but our core underlying margins...

好的，安德魯。這一點將重複我對喬所說的話，但我們的核心潛在利潤率......

Gross margin, gross margin, yes.

毛利率，毛利率，是的。

Oh, gross margins.

哦，毛利率。

Yes.

是的。

Thank you for clarifying that, Andrew. So the gross margins in the first quarter, if we pull out the costs related to some litigation activity that we had in the first quarter, our core underlying gross margin was 48%. In the second quarter, that went down -- if I pull out the restructuring, down to 47.5%. And that's being impacted, we think, we estimate by 100 to 150 basis points in the second quarter by the aggressive actions we're taking in pulling out inventory in our production.

謝謝你澄清這一點，安德魯。因此，第一季度的毛利率，如果我們剔除與第一季度的一些訴訟活動相關的成本，我們的核心基礎毛利率為 48%。在第二季度，這個數字下降了——如果我取消重組，下降到 47.5%。我們認為，由於我們在生產中採取積極行動來削減庫存，我們估計第二季度將受到 100 到 150 個基點的影響。

So underlying operations, we're seeing good execution on what we're working there. And we expect those gross margins to continue to be impacted by us taking actions on our inventory, but we also do see our gross margins improving slightly into the third quarter.

因此，在基礎運營方面，我們看到了我們在那里工作的良好執行。我們預計這些毛利率將繼續受到我們對庫存採取行動的影響，但我們也確實看到我們的毛利率在第三季度略有改善。

So if we pull that out -- just to clarify, if we pull that out, you're sort of recovering slowly from that 48% into sort of more historical range of 49%, 50%. That's a fair statement if you take out inventory?

因此，如果我們把它拉出來——澄清一下，如果我們把它拉出來，你就會從 48% 慢慢恢復到 49%、50% 的歷史範圍。如果你拿出庫存，這是一個公平的說法嗎？

That's a -- Andrew, that's a fair statement.

那是——安德魯，這是一個公平的陳述。

And then on inventory, I assume that improved free cash flow forecast for the year, I think, in Slide 23, if I'm -- Slide 24, that's all working capital, right?

然後在庫存方面，我假設今年的自由現金流預測有所改善，我認為，在幻燈片 23 中，如果我是 - 幻燈片 24，那就是所有營運資金，對吧？

Yes. Our projection -- we're keeping our projection of free cash flow conversion -- well, I think you're actually going into a deeper slide. Improved working capital is the biggest thing impacting our free cash flow conversion and dollars for 2019.

是的。我們的預測——我們保持對自由現金流轉換的預測——好吧，我認為你實際上正在進入更深層次的下滑。改善營運資金是影響我們 2019 年自由現金流轉換和美元的最大因素。

And if you were to quantify, how much incremental working capital reduction opportunity do we have for the next 12 to 18 months?

如果您要量化，我們在接下來的 12 到 18 個月內有多少增量營運資本減少機會？

We -- I'll isolate it just to inventory right now, Andrew, in answering that question. $250 million that we took out in the second quarter, we think there's another $100 million or $200 million that we can be taking out of the second half of 2019. And then as far as 2020, it's a little early to say, but we've been targeting to get down to 85 days of inventory outstanding. That's where we're targeting to get to the end of this year. If we're going to bring that down further in 2020, I'll likely be giving that guidance later in this year or early next year.

在回答這個問題時，安德魯，我現在將其隔離開來進行盤點。我們在第二季度拿出了 2.5 億美元，我們認為我們可以在 2019 年下半年拿出另外 1 億美元或 2 億美元。然後到 2020 年，現在說還為時過早，但我們'我們的目標是將未清庫存減少到 85 天。這就是我們到今年年底的目標。如果我們要在 2020 年進一步降低它，我可能會在今年晚些時候或明年初給出該指導。

Our next question comes from the line of Julian Mitchell of Barclays.

我們的下一個問題來自巴克萊銀行的 Julian Mitchell。

Maybe just focusing on Q3. So I think you talked about flat to slight organic sales growth firm-wide. Maybe just help with a couple of aspects of that. One would be, does that assume further channel destocking? I mean, how severe would that be in Q3? Not your own underproduction efforts but channel destock. And then what are you assuming for the Transport and Electronics business within that after what was a pretty good Q2?

也許只關注第三季度。所以我認為你談到了全公司範圍內有機銷售持平或略有增長。也許只是在其中的幾個方面提供幫助。一個是，這是否假設進一步的渠道去庫存？我的意思是，第三季度會有多嚴重？不是你自己的生產不足努力，而是渠道去庫存。然後，在 Q2 相當不錯之後，您對運輸和電子業務的假設是什麼？

Yes. Julian, it's probably good to step back and recognize we've been seeing the global economy is slowing as we came through second quarter, but this was a trend that we've been seeing since late last year. And I would say, if you look at now third quarter as we move sequentially forward, to deliver on what Nick was just talking about, it really is a stabilization of the markets that we're facing and the trends that we're seeing. And to go below that, it would have to -- the big economies would have to degrade even further. And if you look at channel, Nick talked about what we saw in the second quarter relative to the first quarter, we think when you look at the total year as it plays out, a majority of the inventory adjustments in the channel are taking place in the first half. So it will be a lesser impact even though there'll be some impact in the second half. So that plus a easier comp as we get into Q3, if you look at the go-live that we had with our ERP deployment last year, that would all add up to that trend.

是的。朱利安，退後一步，認識到我們看到全球經濟在第二季度放緩，這可能是件好事，但這是我們自去年年底以來一直看到的趨勢。我會說，如果你現在看第三季度，因為我們依次向前推進，要實現尼克剛才所說的，這確實是我們所面臨的市場和我們所看到的趨勢的穩定。為了低於這個水平，它必須——大型經濟體將不得不進一步退化。如果你看一下渠道，尼克談到了我們在第二季度相對於第一季度看到的情況，我們認為當你看一下全年的表現時，渠道中的大部分庫存調整都發生在上半場。因此，儘管下半年會有一些影響，但影響較小。因此，當我們進入第三季度時，如果你看看我們去年 ERP 部署的上線情況，那麼這一切都會增加這一趨勢。

And just on your question about TEBG, we would see them down in the second half from where they are in -- sequentially from where they are in second quarter but in line with the market outlook that we've been talking about. We don't -- I think early in the year, people have been talking about -- been hoping for a stronger recovery in automotive and electronics. But we see a more conservative view of that now with build rates down and continuing to be soft as we go into second half, maybe stabilizing a bit versus where they are in the second quarter but still down. So we see sequentially down in TEBG.

就你關於 TEBG 的問題而言，我們會看到他們在下半年從他們所在的位置開始下降——從第二季度的位置開始下降，但與我們一直在談論的市場前景一致。我們並沒有——我想今年年初，人們一直在談論——一直希望汽車和電子行業出現更強勁的複蘇。但我們現在看到了一個更保守的觀點，隨著我們進入下半年，建築率下降並繼續疲軟，可能會比第二季度的水平有所穩定，但仍然下降。所以我們在 TEBG 中依次向下看到。

Julian, just to add a little bit to what Mike said there, for Transportation and Electronics in the third quarter particularly, we expect that to be down low to mid-single digits in the third quarter. We've -- and that's in line with what we're expecting as far as guidance for the full year for Transportation and Electronics. We've guided that we think for the full year, that's somewhere between flat to down 3%. And if you had -- if I had to estimate right now, I'd say we're much -- we're leaning more towards the low end of that range for Transportation and Electronics for the full year.

朱利安，只是想補充一下邁克在那裡所說的話，特別是對於第三季度的運輸和電子產品，我們預計第三季度將下降到中等個位數。我們已經 - 這符合我們對運輸和電子產品全年指導的預期。我們已經指導我們認為全年，這介於持平到下降 3% 之間。如果你有 - 如果我現在不得不估計，我會說我們很多 - 我們更傾向於全年運輸和電子產品範圍的低端。

That's extremely helpful. Just following up on that, Nick. As you said, that's trending towards the lower end. Also, I think from a regional standpoint, you took down your China assumption for the year. So maybe help us understand, in the context of the overall reaffirmed organic sales growth guide for 3M for 2019, which are the regions or segments that are coming in maybe at the higher end or looking a little bit brighter today than back in April?

這非常有幫助。只是跟進，尼克。正如您所說，這正趨向於低端。另外，我認為從區域的角度來看，您取消了今年的中國假設。因此，也許可以幫助我們理解，在 3M 2019 年總體重申有機銷售增長指南的背景下，哪些地區或細分市場可能處於高端，或者今天看起來比 4 月份更亮一些？

Yes. So Health Care, as far as the guidance that we've given for the full year on that, that's one we see more likely in the high end of the range, and Transportation and Electronics, more likely towards the low end. Consumer, I'd put right in the middle of the range that we've laid out. And SIBG, we see it in the range, but that also could be in the bottom half of the range. And as we guided negative 1% to plus 2% for the full year last quarter and as we're affirming it, there was also a sense that we had of there may be some places where things come in a little weaker, and we're seeing that happen. And that gives us the ability to continue to maintain that guidance going forward.

是的。因此，就我們就此給出的全年指導而言，醫療保健是我們認為更有可能處於高端範圍的指導，而運輸和電子產品更有可能處於低端。消費者，我會把它放在我們列出的範圍的中間。而 SIBG，我們在範圍內看到它，但也可能在範圍的下半部分。當我們上個季度將全年的負 1% 指導為正 2% 時，正如我們所肯定的那樣，我們也有一種感覺，有些地方的情況可能會有所減弱，而且我們'重新看到這種情況發生。這使我們能夠繼續保持這一指導。

Our next question comes from the line of Nigel Coe of Wolfe Research.

我們的下一個問題來自 Wolfe Research 的 Nigel Coe。

I just want to kind of follow on to that one really, just trying to think about what that all means to that minus 1% to plus 2%. So it seems like you're sort of biasing towards, say, below the midpoint based on what you see today. Would that be fair, Nick, sort of looking at maybe flat to up slightly for the full year?

我只是想真正地跟進那個，只是想想想這對負 1% 到正 2% 意味著什麼。因此，根據您今天看到的情況，您似乎有點偏向於低於中點。這公平嗎，尼克，全年可能持平或略有上升？

Yes. Nigel, I mean the midpoint of that range is up 50 basis points, so flat to up 50 to 100 basis points. So like that's, I think, a very fair zone for where our most likely landing spot is.

是的。奈傑爾，我的意思是該範圍的中點上升了 50 個基點，所以持平到上升 50 到 100 個基點。因此，我認為，對於我們最有可能的著陸點來說，這是一個非常公平的區域。

Okay. That's helpful. I'm not sure -- I missed some of the prepared remarks. Did you quantify the impact of inventory headwinds this quarter? So that down 90 bps, what was the sort of the sell-through that you saw excluding inventory headwinds?

好的。這很有幫助。我不確定——我錯過了一些準備好的發言。您是否量化了本季度庫存逆風的影響？那麼下降 90 個基點，您看到的銷售量是多少，不包括庫存逆風？

Now there's -- Nigel, there's 2 different inventory points we talked about. On channel inventory contractions, that -- last quarter, in the first quarter, we said it was about a 100 basis point impact to revenue. We think second quarter was something similar to that. And Mike also clarified that we think we -- while we still have some ahead of us for channel contraction, we think the majority is behind us.

現在 - 奈傑爾，我們談到了 2 個不同的庫存點。關於渠道庫存收縮，上個季度，在第一季度，我們說這對收入產生了大約 100 個基點的影響。我們認為第二季度與此類似。邁克還澄清說，我們認為我們——雖然我們在渠道收縮方面仍有一些領先優勢，但我們認為大多數都落後於我們。

In terms of within our company, as we had been reducing inventories ourselves, reducing our production, we've said that -- I've said that we think that impacted our margin in the second quarter by 100 to 150 basis points.

就我們公司內部而言，由於我們自己一直在減少庫存，減少產量，我們說過——我說過我們認為這對我們第二季度的利潤率產生了 100 到 150 個基點的影響。

Okay. That's very clear. And my follow-on question is really on the location and occasions of some of the one timers this quarter. There was a $0.07 tax gain. First, did that land in the tax line? Or was that somewhere else, Nick? And then secondly, the restructuring is $112 million operating, $36 million nonoperating. The payback was based on $0.20 of restructuring. Is that the right way to think about it? Or does the payback sort of come down because some of it's nonoperating? And maybe just touch on the nature of that nonoperating restructuring class.

好的。這很清楚。我的後續問題實際上是關於本季度一些一次性計時器的位置和場合。有 0.07 美元的稅收收益。首先，那塊土地是否在稅收範圍內？或者是在別處，尼克？其次，重組為 1.12 億美元的營運資金，3600 萬美元的非營運資金。投資回報基於 0.20 美元的重組。這是正確的思考方式嗎？還是因為其中一些無法運行，投資回報率有所下降？也許只是觸及非經營性重組類的性質。

Okay. Nigel, just to parse out the few pieces here you're asking about, the $0.07 benefit we incurred in relation to the held-for-sale status for our gas detection business, that ran through the tax line, the income tax line of our income statement. The $148 million of total restructuring, we had $112 million of that impacting our operating expense and the balance, $36 million of nonop. And that's exactly in line with what we were expecting. We were estimating approximately $150 million. The fact that some of it's hitting nonop versus operating doesn't impact at all the projected benefits we have going forward of approximately $110 million yet this year and, on an annualized basis, $225 million to $250 million.

好的。奈傑爾，只是為了分析一下你在這裡問的幾件事情，我們因氣體檢測業務的持有待售狀態而產生的 0.07 美元的收益，通過稅收線，我們的所得稅線收入證明。在 1.48 億美元的總重組中，我們有 1.12 億美元影響我們的運營費用和余額，3600 萬美元的非運營。這完全符合我們的預期。我們估計約為 1.5 億美元。事實上，其中一些是非運營與運營並沒有影響我們今年大約 1.1 億美元的預期收益，按年計算，2.25 億美元至 2.5 億美元。

As far as where that restructuring happened, I would say geographically, it happened around -- fairly well dispersed around 3M. And as far as business, of the $112 million that was in operating expenses of that restructuring, about 75% of that was in our corporate and unallocated section, and about 25% of that was in our businesses. Now the benefit, that $110 million of benefit, that will be felt by our businesses through the second half of the year, and it will be fairly proportionate to the size of each of our businesses as far as the benefit they'll see in the second half.

至於重組發生的地方，我會說在地理上，它發生在周圍 - 相當分散在 3M 周圍。就業務而言，在重組運營費用的 1.12 億美元中，約 75% 用於我們的公司和未分配部分，其中約 25% 用於我們的業務。現在，我們的企業將在今年下半年感受到 1.1 億美元的收益，就他們將在下半場。

Our next question comes from the line of Josh Pokrzywinski of Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Josh Pokrzywinski。

Nick, just a point of clarification on the inventory destock that you saw externally by your customers, you said that 100 basis points in the first quarter kind of look similar in the second quarter, but auto -- I think China auto specifically got better. So within that, something must have gotten worse. Where did we see that get worse?

尼克，只是澄清一下你的客戶在外部看到的庫存去庫存，你說第一季度的 100 個基點在第二季度看起來有點相似，但汽車 - 我認為中國汽車特別好。因此，在那之中，事情一定變得更糟了。我們在哪裡看到情況變得更糟？

As far as anything that got sequentially worse versus the first quarter, Josh, nothing comes out particularly strong. I think in aggregate, in China, we continued to see China destocking on a more broad basis, but we didn't see it in our automotive business of any significance. What we saw across our Safety and Industrial business, that view, Josh, was very similar in terms of the total destocking impact that we were seeing of 100 basis points both quarters.

至於任何比第一季度連續惡化的事情，Josh，沒有什麼特別強烈的。我認為總的來說，在中國，我們繼續看到中國在更廣泛的基礎上去庫存，但我們沒有在我們的汽車業務中看到它有任何意義。 Josh，我們在安全和工業業務中看到的觀點與兩個季度我們看到的 100 個基點的總去庫存影響非常相似。

Got it. That's helpful. And then I know it's a little early to think about 2020, but I guess thinking back with historical context for how destocking and restocking cycles go, should we expect to just be selling to kind of market demand as we get to the end of this? Or presumably, in China, there's kind of a bit of a rational exuberance on both sides of the equation that as soon as things turn, destock turns into restock. Has that historically been the case? Or should we just think about 2020 starting point as, "Hey, maybe we'll lose some of that destocking headwind?"

知道了。這很有幫助。然後我知道現在考慮 2020 年還為時過早，但我想回顧一下歷史背景下的去庫存和補庫存週期是如何進行的，我們是否應該期望在結束時只針對某種市場需求進行銷售？或者大概在中國，等式的兩邊都有一點理性的繁榮，一旦情況發生變化，去庫存就會變成補庫存。歷史上是這樣嗎？或者我們是否應該將 2020 年的起點視為，“嘿，也許我們會失去一些去庫存的逆風？”

Yes. Josh, maybe a couple of things. If you look at the channel, and I would say the value chains -- customer value chains, they react to the dynamics in the end markets pretty quickly. What you saw in the destocking in the first half, they were reacting quickly to the build rates in automotive and electronics. We expect that to stabilize in the second half. We'll see some additional destocking because of some of the slowing that we saw in second quarter, but it'll stabilize.

是的。喬希，也許有幾件事。如果你看一下渠道，我會說價值鏈——客戶價值鏈，它們對終端市場的動態反應很快。你在上半年的去庫存中看到的是，他們對汽車和電子產品的建造速度反應迅速。我們預計下半年會趨於穩定。由於我們在第二季度看到的一些放緩，我們將看到一些額外的去庫存，但它會穩定下來。

So really, to start to think about what happens in 2020 or even late in the year, it'll depend on the end market dynamics. If they recover and their demand goes up, then you would see a pretty strong turnaround in restocking. But if it stabilizes, and the projections and outlooks economically are more stable in the second half, then it would be balanced as we get into the second half. And then it depends on what happens in demand as we go into 2020.

所以真的，要開始考慮 2020 年甚至年底會發生什麼，這將取決於終端市場動態。如果他們恢復並且他們的需求上升，那麼你會看到補貨的強勁轉變。但如果它穩定下來，並且下半年的經濟預測和前景更加穩定，那麼進入下半年時它就會保持平衡。然後這取決於我們進入 2020 年時需求會發生什麼。

Got it. That's helpful. And then just a follow up on business transformation and the savings associated with that. Obviously, there's a lot of moving pieces in the organization right now with restructuring and some of the demand dynamics and the internal destocking. How are you benchmarking on some of the business transformation, savings and kind of non-savings related, kind of other benefits that would happen throughout the organization? Is that something where those kind of go by the wayside or harder to execute on? Just an update on how that's tracking.

知道了。這很有幫助。然後只是跟進業務轉型和與之相關的節省。顯然，隨著重組、一些需求動態和內部去庫存，該組織現在有很多變動。您如何對某些業務轉型、儲蓄和非儲蓄相關的，以及整個組織會發生的其他收益進行基準測試？那是那些被擱置或更難執行的地方嗎？只是關於如何跟踪的更新。

Yes. And we've always talked about transformation as a focus. It starts and ends with the customer. But it is really making us more agile, more efficient and more competitive. And that creates value. All of those create value. And it also helped us realign the company around the 4 businesses, the go-to-market models with customers that we have. So it's enabling us to connect to our customers even better as we move ahead. And it's a lot more than an ERP deployment. It's the entire ecosystem around that, and it's digitizing our enterprise. All of that's adding efficiency.

是的。我們一直把轉型作為一個重點來討論。它以客戶開始和結束。但它確實讓我們變得更敏捷、更高效、更具競爭力。這創造了價值。所有這些都創造了價值。它還幫助我們圍繞 4 項業務重新調整公司，即我們擁有的客戶的上市模型。因此，它使我們能夠在前進的過程中更好地與客戶建立聯繫。它不僅僅是 ERP 部署。這是圍繞它的整個生態系統，它正在使我們的企業數字化。所有這些都在提高效率。

And so we are committed to the savings that we talked about at the beginning, and it's a value realization that we would have by the end of 2020. But it does help us drive productivity. It does help us become more efficient broadly. And we talked about how that starts to show up in our margins over time. It's an enabler for us to continue to create premium margins as we move ahead.

因此，我們致力於實現我們在開始時談到的節省，這是我們將在 2020 年底實現的價值。但這確實有助於我們提高生產力。它確實幫助我們提高了廣泛的效率。我們談到了隨著時間的推移，它是如何開始出現在我們的利潤中的。在我們前進的過程中，它是我們繼續創造溢價利潤的推動力。

So it is going to be a driver of the savings that we talked about but also of that efficiency that will carry us forward.

因此，它將成為我們談到的節省的驅動力，同時也是推動我們前進的效率的驅動力。

Our next question comes from the line of Steve Tusa of JP Morgan.

我們的下一個問題來自摩根大通的 Steve Tusa。

The $0.07 of the tax benefit, I mean my tax line wasn't -- and I don't know about everybody else's, but my tax line was relatively in line. Was there then kind of a higher-than-expected effective tax rate? And does that sustain itself? And also, is that a $0.07 benefit kind of now in a run rate per kind of quarter here? Or is it -- was that just kind of a onetime discrete item?

0.07 美元的稅收優惠，我的意思是我的稅線不是——我不知道其他人的情況，但我的稅線相對一致。那麼是否存在高於預期的有效稅率？這能維持嗎？而且，現在每個季度的運行率是 0.07 美元的收益嗎？還是——那隻是一種一次性的離散項目？

Steve, first of all, it's a onetime item. Let me -- and let me just describe it in a little bit of detail. The gas detection business that we own is in a position where we plan to sell it. And the tax basis that we're holding that asset at is greater than the planned selling price, but it's also the book value of what we hold with that asset is below the planned selling price. So when we sell it, we will take an operating income capital gain on that, but from a tax perspective, it will be a loss.

史蒂夫，首先，這是一次性物品。讓我 - 讓我稍微詳細地描述一下。我們擁有的氣體檢測業務處於我們計劃出售的位置。我們持有該資產的稅基高於計劃售價，但我們持有該資產的賬面價值也低於計劃售價。因此，當我們出售它時，我們將從中獲得營業收入資本利得，但從稅收角度來看，這將是虧損。

Now I'm a bit over my skis here describing accounting nuances to you, but the accounting rules are once you place an asset in a held-for-sale status, if it's in a tax loss position, you take the tax benefit immediately even before the deal actually consummates. So that $0.07 is a result of us putting it in that status. So that's not an ongoing repeating thing that we'll be seeing.

現在我有點過頭了在這裡向你描述會計的細微差別，但會計規則是一旦你將資產置於持有待售狀態，如果它處於稅收損失狀態，你會立即獲得稅收優惠，即使在交易真正完成之前。所以這 0.07 美元是我們將其置於該狀態的結果。所以這不是我們將看到的持續重複的事情。

As far as the underlying operations, no, Steve, there's not any big one thing offsetting that. There's always little nits back and forth in the tax rate. And the underlying tax rate for the full year, we still think is going to be in the range of 20% to 22%.

至於基礎操作，不，史蒂夫，沒有什麼大的事情可以抵消它。稅率總是有一些小問題。而全年的基本稅率，我們仍然認為將在 20% 至 22% 的範圍內。

Okay. And then the gain, when it comes to the divestiture, you said -- is that still $0.20? And is that still to come and not in the guidance?

好的。然後是收益，當談到資產剝離時，你說——那還是 0.20 美元嗎？這是否仍然存在，而不是在指南中？

It's still not in the guidance. Yes, that's still not in the guidance.

它仍然不在指南中。是的，這仍然不在指南中。

Okay. And then one last one. Just on the second half, are you planning for kind of -- there's a lot of things moving around. But are you planning -- is this, in your mind, kind of normal seasonality for you guys for the second half of the year?

好的。然後是最後一個。就在下半場，你是否正在計劃 - 有很多事情在發生變化。但你是否計劃 - 在你看來，這對你們來說是下半年的正常季節性嗎？

Normal seasonality, if I look at it on a sequential basis, probably more normal. But the only thing that's abnormal was last year was a bit abnormal for us with some of our pull-ahead sales into second quarter. So from a sequential basis, we're not seeing this year progressing on an abnormal path. I think it'll be fairly normal.

正常的季節性，如果我按順序看，可能更正常。但唯一不正常的是去年對我們來說有點不正常，我們的一些銷售提前到第二季度。因此，從連續的基礎上看，我們沒有看到今年在不正常的道路上取得進展。我認為這將是相當正常的。

Okay. And then just one last quick one. This $0.07, it's in the tax line, correct, in the models, the $0.07?

好的。然後只是最後一個快速的。這 0.07 美元，它在稅項中，正確的，在模型中，0.07 美元？

That is correct, Steve.

沒錯，史蒂夫。

Our next question comes from the line of Deane Dray of RBC Capital Markets.

我們的下一個問題來自 RBC Capital Markets 的 Deane Dray。

The 3 problem areas that have been pressuring 3M for like more of the past year: auto, electronics and China. So the China, you called out as continuing to be soft, but notionally, on a geographic basis this quarter, it did not stand out as a particular negative. So can you comment on that? And what kind of color you see across your businesses in China in particular and related to kind of the tariff and trade frictions?

在過去的一年中，3M 一直面臨壓力的 3 個問題領域是：汽車、電子產品和中國。因此，您稱中國繼續疲軟，但從概念上講，本季度在地理基礎上，它並沒有表現出特別的負面影響。那麼你能對此發表評論嗎？您在中國的業務中看到了什麼樣的顏色，特別是與關稅和貿易摩擦相關的顏色？

Yes. Deane, we do talk a lot about China, auto, electronics and kind of get them all together. But maybe just if you step back and look at China for 3M, we continue to see strength in our Health Care business, up high single digits. And so that was driving a strong growth for us. We also saw strength in our medical solutions business in particular. Transportation and Electronics was up low single digits in the quarter. We saw a significant decline in automotive OEM, but that was countered and offset by electronics up low single digits. We saw strong growth in our Transportation and Safety business there and our advanced materials business. So it -- there was some strength areas that helped China balance out.

是的。迪恩，我們確實談論了很多關於中國、汽車、電子產品的話題，並將它們放在一起。但也許只要你退後一步，看看 3M 在中國的情況，我們就會繼續看到我們的醫療保健業務的實力，以高個位數增長。因此，這推動了我們的強勁增長。我們還特別看到了我們的醫療解決方案業務的優勢。運輸和電子產品在本季度的增長率較低，個位數。我們看到汽車 OEM 顯著下降，但這被電子產品的低個位數抵消和抵消了。我們在那裡看到了我們的運輸和安全業務以及我們的先進材料業務的強勁增長。所以它 - 有一些優勢領域幫助中國平衡。

As I said earlier, sequentially, we see Transportation and Electronics a little softer in the second half. And so we're taking a conservative view around build rates in electronics outlook as we've built our view of the second half. And that's part of impact in China. But second quarter, some strengths and a good performance against a strong comp year-over-year.

正如我之前所說，我們看到下半年交通運輸和電子產品的表現略有疲軟。因此，在我們建立對下半年的看法時，我們對電子產品前景的構建率持保守看法。這是對中國影響的一部分。但第二季度，一些優勢和良好的表現與去年同期相比表現強勁。

That's helpful. And then on electronics, everyone wants to paint electronics all with the same brush, both product lines and geographies. But you made the comment earlier that display film was actually up and relatively strong, and it was electronics materials solutions that were softer. Maybe just share with us the nuances about why you would see those different dynamics within the supply chain. Maybe there's some semiconductor exposure there as well, but the color would be helpful there.

這很有幫助。然後在電子產品上，每個人都想用同樣的刷子來繪製電子產品，無論是產品線還是地域。但是您之前發表評論說，顯示膜實際上已經上漲並且相對堅挺，而電子材料解決方案則更軟。也許只是與我們分享您為什麼會在供應鏈中看到這些不同動態的細微差別。也許那裡也有一些半導體曝光，但那裡的顏色會有所幫助。

Yes. And I think that your last point is the place to start it. Our electronic materials solutions business has a broader exposure in electronics, including semiconductor, fabrication, data centers, which continues to be a helpful market and growing, but it's got a little different exposure. Display materials certainly has the consumer electronics piece. The biggest part of the revenue there is consumer electronics. But we're also moving into higher-growth areas like automotive electrification, and we continue to see growth there. We continue to see some good results. And I would say, consumer electronics, we saw a little bit of an uptick in display demand in second quarter, a little stronger than maybe we even expected as we started into the quarter. Some of that is you start to see a little bit of buying in anticipation of the second half season for consumer electronics. And so we saw a little bit of that starting in second quarter. And that hits display materials more so much -- and a much bigger impact than in electronic materials.

是的。我認為你的最後一點是開始的地方。我們的電子材料解決方案業務在電子領域擁有更廣泛的業務，包括半導體、製造、數據中心，這仍然是一個有用的市場並且還在增長，但它的業務有所不同。顯示材料當然有消費電子這塊。那裡收入的最大部分是消費電子產品。但我們也在進入汽車電氣化等高增長領域，我們繼續看到那裡的增長。我們繼續看到一些好的結果。我要說的是，在消費電子產品方面，我們看到第二季度的顯示器需求略有上升，甚至比我們進入本季度時的預期還要強勁。其中一些是你開始看到一些購買，因為預期下半年將是消費電子產品。所以我們從第二季度開始就看到了一些。這對顯示材料的影響更大——而且比對電子材料的影響要大得多。

That's helpful. And just last point is more of a comment than a question, is I really appreciate the comments about PFAS and where that stands and the level of transparency that 3M is providing here. I'm just struck by how much misinformation is on the Internet regarding the chemical, references to it being a forever chemical. And the reality is there are a number of very effective ways to remediate the chemical from water. They're all proven to be effective. The question of how much do you want to spend, how big the water body and your time frame. So the remediation on this looks like it's doable, and you all are taking an appreciated approach to this. So just wanted to add that.

這很有幫助。最後一點更多的是評論而不是問題，我真的很欣賞關於 PFAS 的評論，以及 3M 在這裡提供的透明度水平。我只是對互聯網上關於該化學品的錯誤信息如此之多感到震驚，這些信息稱它是一種永遠的化學品。事實上，有許多非常有效的方法可以修復水中的化學物質。它們都被證明是有效的。問題是你想花多少錢，水體有多大，你的時間範圍。因此，對此的補救看起來是可行的，你們都對此表示讚賞。所以只想補充一點。

Yes. Thank you, Deane. And we understand the concerns people have about their water. We take the issue seriously, but we're also seeing that we can make a difference in remediation. And we'll continue to be transparent and update you as we go ahead.

是的。謝謝你，迪恩。我們理解人們對水的擔憂。我們認真對待這個問題，但我們也看到我們可以在補救方面有所作為。我們將繼續保持透明，並在我們前進的過程中為您提供最新信息。

Our next question comes from the line of John Inch of Gordon Haskett.

我們的下一個問題來自 Gordon Haskett 的 John Inch。

Nick, just to clarify, so the $0.20, when you say it's not in the guide and just to be clear, the $9.25, $9.75 would not include $0.20 of pending gain from the sale of gas and flame. Is that correct?

尼克，我想澄清一下，所以 0.20 美元，當你說它不在指南中時，只是為了清楚起見，9.25 美元、9.75 美元不包括銷售天然氣和火焰的 0.20 美元未決收益。那是對的嗎？

John, that's correct. It does not include the pending gain from the sale of our gas detection business nor does it include any impact that will come from Acelity when that -- when and if that closes, which we expect will be later this year.

約翰，沒錯。它不包括出售我們的氣體檢測業務的未決收益，也不包括 Acelity 將在關閉時產生的任何影響 - 我們預計將在今年晚些時候關閉。

Right. And then, Nick, in the P&L, the other expense income line of minus $256 million versus $51 million a year ago, I'm assuming Venezuela charge of $162 million is in that. And is the delta the $36 million of nonop restructuring, kind of getting you to $58 million? And does that number run through -- it doesn't look like it was running from your adjusted number, but maybe you can help me with just the bridge there.

正確的。然後，尼克，在損益表中，另一條費用收入線為負 2.56 億美元，而一年前為 5100 萬美元，我假設委內瑞拉的費用為 1.62 億美元。三角洲是 3600 萬美元的非運營重組，讓你達到 5800 萬美元嗎？這個數字是否一直運行 - 它看起來不像是從您調整後的數字開始運行的，但也許您可以幫助我解決那裡的橋樑問題。

Yes. That other, that will include the Venezuela. It will also include $36 million from the restructuring actions we took that were not part of operating expense. Those are the 2 biggest things in there.

是的。另一個，將包括委內瑞拉。它還將包括我們採取的不屬於運營費用的重組行動的 3600 萬美元。這些是其中最重要的兩件事。

And there's nothing else in there of consequence. So the -- and the $36 million does run through as the costs run through the adjusted number. Is that correct?

那裡沒有其他重要的東西。因此，隨著成本貫穿調整後的數字，3600 萬美元確實貫穿始終。那是對的嗎？

That is correct, that is correct.

那是對的，那是對的。

Okay. Are there any -- just while we're on gas and flame, are there any other businesses -- I guess this was part of safety, right? Are there any other businesses, Mike or Nick, that you're looking at that may be potential candidates for divestiture?

好的。是否有任何 - 就在我們使用氣體和火焰時，是否有任何其他業務 - 我想這是安全的一部分，對吧？邁克或尼克，您是否正在尋找其他可能被剝離的企業？

John, portfolio management is one of our top priorities. And as you know, it's an ongoing process for us. And we're actively managing this aspect of the portfolio and really looking at all of our businesses and their fit with our value model. We've shown that when we don't have the right fit, we'll take action. But that's something on an ongoing process. We'll keep you updated.

約翰，投資組合管理是我們的首要任務之一。如您所知，這對我們來說是一個持續的過程。我們正在積極管理投資組合的這一方面，並真正審視我們所有的業務及其與我們價值模型的契合度。我們已經證明，當我們不合適時，我們會採取行動。但這是一個正在進行的過程。我們會及時通知您。

I guess my question is, would -- did this just come about? Or were you -- you've been working on it for a little while? Or what was the genesis of it?

我想我的問題是，這會發生嗎？或者你 - 你已經為此工作了一段時間？或者它的起源是什麼？

This particular case, the gas and -- gas detection business, when we made the acquisition of Scott Safety, this was part of our strategy at the time of the acquisition. So this was -- we've talked about on portfolio how we think about complementing our organic priorities with acquisitions that leverage our fundamental strengths. Scott Safety was one of those, moves us into a high-value space and in this personal safety marketplace. Gas detection, we identified that earlier, that wasn't part of our strategy, and now we're acting on it.

這個特殊的案例，氣體和 - 氣體檢測業務，當我們收購 Scott Safety 時，這是我們收購時戰略的一部分。所以這是 - 我們已經討論了我們如何考慮通過利用我們的基本優勢的收購來補充我們的有機優先事項的投資組合。 Scott Safety 就是其中之一，它將我們帶入了一個高價值領域和這個人身安全市場。氣體檢測，我們早些時候發現，這不是我們戰略的一部分，現在我們正在採取行動。

Got it. And then just a couple more cleanups. I think you said -- maybe, Nick, can you just update us on your expectation for share repurchase in the second half? And then I think you raised the dividend by 6% in the first quarter. Maybe, Mike, philosophically, you've got a lot of -- you've got a few pressures on your cash call at the moment. Are you committed to go to an annual dividend increase kind of looking out?

知道了。然後再進行幾次清理。我想你說過——也許，尼克，你能告訴我們你對下半年股票回購的預期嗎？然後我認為你在第一季度將股息提高了 6%。也許，邁克，從哲學上講，你有很多——你目前在現金電話上有一些壓力。您是否承諾每年增加股息？

Yes. John, let me take that. First, as far as the dividend, our position for many -- several years has been that we expected to grow -- our dividend to grow in line with earnings over time. Now this particular year is -- with the 6% increase, that's outstripping our earnings growth. But the concept of us continuing to increase earnings year -- our dividend year-over-year, I'd say that's a philosophy and approach we continue to expect. But I would say, as far as expecting the dividend to increase, that over time, it will parallel fairly closely our earnings per share growth.

是的。約翰，讓我拿走那個。首先，就股息而言，我們多年來的立場是我們預計會增長——我們的股息隨著時間的推移與收益同步增長。現在這個特定的年份 - 增長了 6%，這超過了我們的收入增長。但我們繼續增加收益年度的概念——我們的股息逐年增長，我想說這是我們繼續期待的理念和方法。但我想說，就預期股息增加而言，隨著時間的推移，它將與我們的每股收益增長相當接近。

And then, John, remind me of the first part of the question. Oh, sorry, share repurchases.

然後，約翰，提醒我問題的第一部分。哦，對不起，股票回購。

Share repurchase, yes.

股票回購，是的。

We're -- I've guided $1 billion to $1.5 billion for the full year. That would imply, at most, just a few hundred million in the second half of the year.

我們——我已經為全年指導了 10 億至 15 億美元。這意味著下半年最多只有幾億。

And just -- I'm sorry for this last point. But if the -- obviously, the earnings are going down, is the philosophy you grow dividends with the earnings? But if the earnings are going down, are you just going to hold the dividend or -- and then wait for the catch-up? Is that kind of the implication? I'm not actually trying to hold you to a number. I'm just trying to understand the philosophy.

只是 - 我對最後一點感到抱歉。但是，如果 - 顯然，收益正在下降，那麼你的理念是否會隨著收益增加股息？但如果收益下降，你是要持有股息還是 - 然後等待追趕？是那種意思嗎？我實際上並不是想讓你知道一個數字。我只是想了解哲學。

No. The philosophy would be over time, I would think unlikely that we would decrease -- hold flat or decrease the dividend even if there was 1 year of an earnings decline. If I go back to other times in our history where we've had an earnings decline, we still have some small increases in our dividend.

不。隨著時間的推移，我認為我們不太可能減少股息——保持不變或減少股息，即使有 1 年的收益下降。如果我回到我們歷史上收益下降的其他時期，我們的股息仍然有一些小幅增長。

Our next question comes from the line of John Walsh of Crédit Suisse.

我們的下一個問題來自 Crédit Suisse 的 John Walsh。

So in the prepared remarks, you kind of talked about higher pricing being able to offset inflation for the full year. Just want to pull apart that price piece and just -- we've seen a deceleration, right, but we should still expect price positive for the full year on an absolute basis?

所以在準備好的評論中，你談到了更高的定價能夠抵消全年的通貨膨脹。只是想拆開那個價格塊——我們已經看到了減速，對吧，但我們仍然應該期望全年的價格在絕對基礎上為正？

Yes. I'll go even further, John, right? So we've averaged about 70 basis points of price growth in the first half of the year. My best estimate for the full year is we'll be right in that range. So I wouldn't characterize it as a deceleration. I think about 70 basis points first half. I think something in the range of 70 basis points second half is our best view on that now and remain quite confident that it will more than outpace what we're seeing from a raw material and tariff inflation impact.

是的。我會更進一步，約翰，對吧？因此，今年上半年我們的價格平均增長了約 70 個基點。我對全年的最佳估計是我們將處於該範圍內。所以我不會將其描述為減速。我認為上半年大約有 70 個基點。我認為下半年 70 個基點範圍內的一些東西是我們現在對此的最佳看法，並且仍然非常有信心它將超過我們從原材料和關稅通脹影響中看到的。

Got you. And then just thinking about the third quarter organic growth, the flat to up low single digits, that still implies that the growth on growth would decelerate because you have an easier comp in Q3 of '18. Just maybe some color that you saw exiting the quarter, June, July, anything you can kind of talk to as the trajectory you're seeing currently?

明白了然後想想第三季度的有機增長，持平到低個位數，這仍然意味著增長的增長會減速，因為你在 18 年的第三季度有一個更容易的比較。也許你看到的一些顏色退出了這個季度，6 月，7 月，任何你可以談論的作為你目前看到的軌蹟的東西？

John, the biggest trajectory change that I'll say that colors the flat to up low single digits in the third quarter as far as versus the comp is my earlier statement that we expect Transportation and Electronics to be down low to mid-single digits. I think that will be the thing that colors why sequentially versus an easier comp, it's not quite the same level of growth that you would expect. When I look across the rest of our businesses, your analysis you just went through, I think it's a pretty valid analysis.

約翰，我要說的最大軌跡變化是，與 comp 相比，第三季度將持平上調至低個位數，這是我之前的聲明，我們預計運輸和電子產品將下降至中低個位數。我認為這將說明為什麼順序與更簡單的組合相比，它的增長水平與您預期的不完全相同。當我審視我們的其他業務時，您剛剛進行的分析，我認為這是一個非常有效的分析。

Our next question comes from the line of Laurence Alexander of Jefferies.

我們的下一個問題來自 Jefferies 的 Laurence Alexander。

Two quick ones. Can you just give a little bit more detail on the trends you're seeing in aerospace? Seemed a bit weaker than what we've heard from other companies. And secondly, on PFAS or PFOS and PFOA, that litigation area, can you characterize whether the U.S. standards are tougher or easier than in Europe? And maybe just sort of help us get in front -- get ahead of where the food contactor base is because I think that that's like another cloud of noise that shouldn't really be affecting you, but I think there are people I observed focused on the European side there.

兩個快的。您能否更詳細地介紹一下您在航空航天領域看到的趨勢？似乎比我們從其他公司聽到的要弱一些。其次，在訴訟領域 PFAS 或 PFOS 和 PFOA 上，您能否描述美國標準比歐洲更嚴格還是更容易？也許只是幫助我們走在前面——走在食品接觸器基地的前面，因為我認為那就像另一團噪音，不應該真正影響你，但我認為我觀察到的一些人專注於歐洲那邊。

Yes. Laurence, maybe starting with aerospace, when we talked about the business, we talked about automotive and aerospace together as one business, and when you look at the division that we share and then we report the revenue from it as together. Our aerospace business actually has shown some good growth as we come through the first half of the year. So it's smaller than our automotive business, but it's an important business for us and doing well. So I don't think we're seeing anything different in that respect.

是的。勞倫斯，也許從航空航天開始，當我們談論業務時，我們將汽車和航空航天作為一個業務一起討論，當你看一下我們共享的部門，然後我們一起報告它的收入。在今年上半年，我們的航空航天業務實際上已經顯示出一些良好的增長。所以它比我們的汽車業務要小，但它對我們來說是一項重要的業務，而且做得很好。所以我認為我們在這方面沒有看到任何不同。

What I would say about -- thinking about Europe versus U.S. and PFAS or PFOA, PFOS regulations, the regulations are really evolving right now. I don't think it's clear to -- I don't think I can clearly compare U.S. versus other international or Europe regulations. It's very evolving, and we're working with regulators broadly, both federal and local.

我要說的是——想想歐洲與美國以及 PFAS 或 PFOA、PFOS 法規，這些法規現在確實在不斷發展。我認為這還不清楚——我認為我無法清楚地將美國與其他國際或歐洲法規進行比較。它在不斷發展，我們正在與聯邦和地方的監管機構廣泛合作。

Our next question comes from the line of Jeff Sprague of Vertical Research Partners.

我們的下一個問題來自 Vertical Research Partners 的 Jeff Sprague。

Obviously, a lot of ground to cover. I thought it might be interesting to just flip the script a little bit to things that look okay or a little bit better. So in particular, your confidence level in Consumer maybe being kind of middle of the guide, Health Care maybe better, just a couple of finer points on what you see going on there. What would drive that? Where are we at in kind of the drug delivery comps, et cetera?

顯然，需要覆蓋很多方面。我認為將腳本稍微翻轉一下看起來不錯或更好一點的東西可能會很有趣。因此，特別是，您對消費者的信心水平可能在指南中處於中間位置，醫療保健可能更好，只是您看到那裡發生的事情的幾個要點。什麼會推動它？我們在藥物輸送等方面處於什麼位置？

Yes, yes. So I would say, you look at Health Care, we talked about it had a good quarter, and behind that is a strong market growth. So this is a -- we're in a place where we've got good market dynamics and our businesses are performing well. We had our biggest business, our medical solutions business, up mid-single digits. We saw strength in the U.S. We saw strength in China, as I talked about it. Our food safety business was up mid-single digits. Our health information systems business was up high single digits. So it's pretty broad-based performance as we went through the quarter. We did see a decline in drug delivery, as we expected, in mid-single digits in Q2. We have been talking about how we see that stabilizing as we go through 2019, and we do see some improvement sequentially as we go into the second half in that business. So that will actually help the overall performance of the Health Care business. So second half, we also have the same comparable year-over-year dynamic. We have a little easier comparable in the second half. So strong market dynamics, our portfolio performing well broadly and, I think, a strong performance against comps in the second half.

是的是的。所以我想說，你看看醫療保健，我們談到它有一個很好的季度，背後是強勁的市場增長。所以這是一個 - 我們處於一個擁有良好市場動態且我們的業務表現良好的地方。我們最大的業務，我們的醫療解決方案業務，增長了中個位數。正如我所說，我們看到了美國的力量。我們看到了中國的力量。我們的食品安全業務增長了中個位數。我們的健康信息系統業務增長了個位數。因此，在我們整個季度中，它的表現非常廣泛。正如我們預期的那樣，我們確實看到第二季度藥物交付量下降了中個位數。我們一直在談論我們如何看待這種情況在 2019 年趨於穩定，而且隨著我們進入該業務的下半年，我們確實看到了一些連續的改善。因此，這實際上將有助於醫療保健業務的整體表現。所以下半年，我們也有同樣可比的同比動態。我們在下半場比較容易一點。如此強勁的市場動態，我們的投資組合廣泛表現良好，而且我認為，下半年對 comps 的表現強勁。

You look at Consumer, we're at 1% and, as Nick's comment said, kind of middle of the range as we look for the total year. We look -- we got a good balance between our sell-in and sell-out. And all of our businesses in the second quarter were growing with the exception of our home care business. And we see that sell-out dynamic setting up a good middle-of-the-range kind of performance in the second half against some growth in retail spending in the macro.

你看看消費者，我們是 1%，正如尼克的評論所說，在我們尋找全年的範圍內有點中間。我們看——我們在賣出和賣出之間取得了很好的平衡。除家庭護理業務外，我們第二季度的所有業務都在增長。而且我們看到，在宏觀零售支出有所增長的情況下，下半年的售罄動態建立了良好的中等表現。

Is there anything to conclude or any comp issue as it relates to that home care business? What was actually going on there?

與該家庭護理業務有關，是否有任何結論或任何薪酬問題？那裡到底發生了什麼？

I think we saw maybe a little bit of a comp year-over-year. We had some of the same go-live of the U.S. ERP deployment impacting that business. And I would say Consumer is larger in the U.S. than some of our other businesses. It's -- about half of our global revenue is in the U.S., so it's a bigger footprint. So it has a slightly higher impact when you have that pull ahead, and it did impact all of those businesses in 2018.

我認為我們可能看到了同比增長的一點點。我們有一些影響該業務的美國 ERP 部署的上線。而且我會說消費者在美國比我們的其他一些業務更大。它是 - 我們全球收入的大約一半在美國，所以它的足跡更大。因此，當你有這種推動力時，它的影響會略大一些，它確實影響了 2018 年的所有這些業務。

That concludes the question-and-answer portion of our conference call. I will now turn the call back over to Mike Roman for some closing comments.

我們電話會議的問答部分到此結束。我現在將把電話轉回 Mike Roman 以徵求一些結束意見。

Yes. To wrap up, I am encouraged by our company's progress in the second quarter. Our execution was strong in the face of continued slow growth conditions in key end markets as we effectively managed costs and improved our cash flow. Moving ahead, we remain focused on continuing to drive operational improvements, investing for the future and delivering for our customers and shareholders. Thank you for joining us.

是的。總而言之，我對我們公司在第二季度取得的進展感到鼓舞。面對關鍵終端市場持續緩慢的增長狀況，我們的執行力很強，因為我們有效地管理了成本並改善了現金流。展望未來，我們仍然專注於繼續推動運營改進，為未來投資並為我們的客戶和股東提供服務。感謝您加入我們。

Ladies and gentlemen, that does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your line.

女士們，先生們，今天的電話會議到此結束。我們感謝您的參與並請您斷開您的線路。