3M (MMM) 2023 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, Tuesday, July 25, 2023.

女士們先生們，感謝你們的支持。歡迎參加 3M 第二季度財報電話會議。 （操作員說明）謹此提醒，本次會議將於 2023 年 7 月 25 日星期二進行錄製。

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

我現在想將電話轉給 3M 投資者關係高級副總裁 Bruce Jermeland。

Thank you and good morning, everyone, and welcome to our second quarter earnings conference call. With me today are Mike Roman, 3M's Chairman and Chief Executive Officer; Monish Patolawala, our Chief Financial and Transformation Officer; and Kevin Rhodes, our Chief Legal Officer. Mike, Kevin and Monish will make some formal comments, then we will take your questions. Please note that today's earnings release and slide presentation accompanying this call are posted on the homepage of our Investor Relations website at 3m.com.

謝謝大家，大家早上好，歡迎參加我們的第二季度收益電話會議。今天與我在一起的有 3M 董事長兼首席執行官 Mike Roman； Monish Patolawala，我們的首席財務和轉型官；以及我們的首席法務官凱文·羅茲 (Kevin Rhodes)。邁克、凱文和莫尼什將發表一些正式評論，然後我們將回答您的問題。請注意，今天的收益發布和伴隨本次電話會議的幻燈片演示已發佈在我們的投資者關係網站 3m.com 的主頁上。

Please turn to Slide 2. Please take a moment to read the forward-looking statement. During today's conference call, we'll be making 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.

請翻到幻燈片 2。請花點時間閱讀前瞻性聲明。在今天的電話會議上，我們將做出某些預測性陳述，以反映我們目前對 3M 未來業績和財務業績的看法。這些陳述基於對未來事件的某些假設和預期，這些假設和預期存在風險和不確定性。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。

Please note, throughout today's presentation, we'll be making references to certain non-GAAP financial measures. Reconciliations of the non-GAAP measures can be found in the attachments to today's press release.

請注意，在今天的演示中，我們將引用某些非公認會計準則財務指標。非公認會計原則措施的調節可以在今天新聞稿的附件中找到。

With that, please turn to Slide 3, and I'll now hand the call off to Mike. Mike?

接下來，請轉到幻燈片 3，我現在將把電話轉給 Mike。麥克風？

Thank you, Bruce. Good morning, everyone, and thank you for joining us. In the second quarter, we made significant progress on the important actions we have been taking to improve our performance and shape the future of 3M. We posted adjusted organic growth of negative 2.5%, which includes a negative 1.7% headwind from the expected decline in disposable respirator sales. Revenue for the quarter was at the high end of our guidance range.

謝謝你，布魯斯。大家早上好，感謝您加入我們。第二季度，我們為提高績效和塑造 3M 的未來而採取的重要行動取得了重大進展。我們發布的調整後有機增長為負 2.5%，其中包括一次性呼吸器銷量預期下降帶來的負 1.7% 阻力。該季度的收入處於我們指導範圍的高端。

Our adjusted operating margin was 19.3%, impacted by restructuring charges of $212 million or a headwind to adjusted operating margin of 2.7 percentage points. Excluding these charges, we increased operating margin year-over-year. We delivered adjusted earnings per share of $2.17 and adjusted free cash flow of $1.5 billion driven by continued improvements in inventory management.

受到 2.12 億美元重組費用或調整後營業利潤率 2.7 個百分點的逆風影響，我們的調整後營業利潤率為 19.3%。排除這些費用，我們的營業利潤率同比有所增加。在庫存管理持續改進的推動下，我們實現了 2.17 美元的調整後每股收益和 15 億美元的調整後自由現金流。

Today, we are updating our full year earnings per share guidance to $8.60 to $9.10, up from a previous range of $8.50 to $9. We remain confident in our ability to deliver on our commitments, realize additional benefits from our restructuring actions and position 3M for the future.

今天，我們將全年每股收益指引從之前的 8.50 美元到 9 美元調整為 8.60 美元到 9.10 美元。我們對履行承諾、從重組行動中實現額外收益以及為 3M 的未來定位的能力充滿信心。

In the quarter, we maintained a strong focus on serving customers, driving operational execution and maintaining spending discipline. All business segments delivered sequential improvement in adjusted operating margins. Our restructuring actions and strong focus on cost management drove these margin improvements.

本季度，我們繼續高度重視服務客戶、推動運營執行和維持支出紀律。所有業務部門的調整後營業利潤率均實現連續改善。我們的重組行動和對成本管理的高度重視推動了利潤率的提高。

Looking at our markets, trends played out as expected. We saw strength in automotive, both OEM and aftermarket, as well as highway infrastructure and personal safety, excluding disposable respirators. Health Care, which was up slightly, continues to be impacted by lower post-COVID-related demand, notably in our biopharma, Health Information and Medical Solutions businesses. We also saw continued weakness in electronics, consumer retail and China.

看看我們的市場，趨勢正如預期的那樣發展。我們看到了汽車、原始設備製造商和售後市場以及高速公路基礎設施和個人安全（不包括一次性呼吸器）的優勢。醫療保健業務略有增長，但繼續受到新冠疫情后相關需求下降的影響，特別是在我們的生物製藥、健康信息和醫療解決方案業務領域。我們還看到電子產品、消費零售和中國市場持續疲軟。

Please turn to Slide 4. As we focus on improving our performance and managing a dynamic external environment, our teams are driving 3 strategic priorities: improving operational execution, successfully spinning off our Health Care business and addressing litigation.

請參閱幻燈片 4。當我們專注於提高績效和管理動態的外部環境時，我們的團隊正在推動 3 個戰略重點：提高運營執行力、成功剝離我們的醫療保健業務和解決訴訟。

We are on track with our restructuring actions and have made significant progress in leaning out the center of the company, simplifying our management structure and streamlining our supply chain. The changes to our enterprise supply chain organization are enabling improvements in service, cost and inventory, which helped drive our second quarter results. We are also taking advantage of the continued healing in supply chains to reduce logistics costs and improve production yields.

我們的重組行動正步入正軌，並在精簡公司中心、簡化管理結構和精簡供應鏈方面取得了重大進展。我們企業供應鏈組織的變化正在改善服務、成本和庫存，這有助於推動我們第二季度的業績。我們還利用供應鏈的持續復甦來降低物流成本並提高產量。

We've also made progress in advancing our go-to-market models to bring our innovation closer to customers. In support of these changes, to date, we have initiated the transition to a new export model in 24 countries. I am pleased with how these changes are helping drive performance.

我們在推進上市模式方面也取得了進展，使我們的創新更貼近客戶。為了支持這些變化，迄今為止，我們已在 24 個國家/地區開始向新的出口模式過渡。我對這些變化如何幫助提高績效感到滿意。

We've made good progress on our planned spin of our Health Care business, including regulatory filings and system updates in preparation for soft spin. We are also in the final steps of naming a CEO. We continue to work towards closing the transaction by year-end 2023 or early 2024, subject to the required conditions and additional factors we have disclosed in our SEC filings.

我們在計劃的醫療保健業務剝離方面取得了良好進展，包括監管備案和系統更新，為軟剝離做準備。我們還處於任命首席執行官的最後階段。我們將繼續努力在 2023 年底或 2024 年初完成交易，但須遵守我們在 SEC 文件中披露的所需條件和其他因素。

Last month, we announced an agreement, subject to court approval, to resolve public water systems claims nationwide in the AFFF multi-district litigation. This agreement will benefit U.S.-based public water systems that provide drinking water to a vast majority of Americans. The settlement covers all forms of PFAS. As we announced, we have taken a Q2-related charge of $10.3 billion payable over 13 years. Also related to litigation, we continue to participate in the confidential mediation process as part of the Combat Arms MDL, and we'll provide updates as appropriate.

上個月，我們宣布達成一項協議，以解決 AFFF 多區訴訟中全國范圍內的公共供水系統索賠問題，但須經法院批准。該協議將使為絕大多數美國人提供飲用水的美國公共供水系統受益。和解協議涵蓋所有形式的 PFAS。正如我們所宣布的，我們已在 13 年內支付與第二季度相關的 103 億美元費用。同樣與訴訟相關，我們將繼續參與保密調解流程，作為 Combat Arms MDL 的一部分，並且我們將酌情提供更新。

To provide additional details on our PFAS settlement agreement, I will now turn the call over to Kevin. Please turn to Slide 5. Kevin?

為了提供有關我們的 PFAS 和解協議的更多詳細信息，我現在將把電話轉給 Kevin。請翻到幻燈片 5。凱文？

Thank you, Mike, and good morning. This is an important step forward for 3M. As Mike said, we have entered into a broad class resolution with public water systems that provide drinking water to the vast majority of Americans. We are taking a proactive approach to managing PFAS by establishing a more certain path forward for public water systems, communities and 3M.

謝謝你，邁克，早上好。這是 3M 向前邁出的重要一步。正如邁克所說，我們已經就為絕大多數美國人提供飲用水的公共供水系統達成了廣泛的階級決議。我們正在採取積極主動的方法來管理 PFAS，為公共供水系統、社區和 3M 建立更明確的前進道路。

Subject to court approval, 3M has agreed to support PFAS remediation for public water systems that detect PFAS at any level, and our agreement addresses all PFAS, not just those compounds that have been the primary focus of litigation to date. Our agreement also provides funding for eligible public water systems that may detect PFAS into the future, and we have agreed to fund additional testing by public water systems as well.

經法院批准，3M 已同意支持對檢測到任何級別 PFAS 的公共供水系統進行 PFAS 修復，並且我們的協議涉及所有 PFAS，而不僅僅是那些迄今為止成為訴訟主要焦點的化合物。我們的協議還為未來可能檢測 PFAS 的合格公共供水系統提供資金，並且我們還同意資助公共供水系統的額外測試。

As Mike shared, the agreement terms entail a present value commitment of $10.3 billion paid over 13 years. Additional details regarding the payment schedule are available in our Form 8-K filed in June. While this agreement provides an alternative to continued litigation for class members and for 3M, we remain prepared to defend ourselves in litigation should the agreement not receive court approval or should public water systems choose to litigate instead.

正如 Mike 所說，協議條款要求在 13 年內支付現值 103 億美元的承諾。有關付款計劃的更多詳細信息，請參閱我們 6 月份提交的 8-K 表格。雖然該協議為集體成員和 3M 提供了繼續訴訟的替代方案，但如果該協議未獲得法院批准或公共供水系統選擇提起訴訟，我們仍準備在訴訟中為自己辯護。

We are building on actions 3M has taken and continues to take. We were the first company to exit the manufacturing of 2 forms of PFAS, namely PFOA and PFOS, which we announced more than 20 years ago. We have invested in state-of-the-art water filtration technology in our chemical manufacturing operations. And we have announced that 3M will exit all PFAS manufacturing by the end of 2025. We will continue to build on this important progress as we focus on the future and work to proactively manage PFAS.

我們正在以 3M 已經採取和繼續採取的行動為基礎。我們是第一家退出 20 多年前宣布的 2 種 PFAS（即 PFOA 和 PFOS）生產的公司。我們在化學品製造業務中投資了最先進的水過濾技術。我們還宣布，3M 將在 2025 年底前退出所有 PFAS 生產。我們將繼續在這一重要進展的基礎上，著眼於未來，努力主動管理 PFAS。

Now let me turn it over to Monish to provide more details regarding our performance in the quarter. Monish?

現在讓我將其轉交給莫尼什，以提供有關我們本季度業績的更多詳細信息。莫尼什？

Thank you, Kevin, and I wish you all a very good morning. Please turn to Slide 6. Our second quarter performance was driven by continued focus on serving our customers, improving manufacturing and supply chain productivity while also maintaining strong spending discipline. Also, during the quarter, we initiated a large part of our restructuring program to simplify and streamline the organization. We are aggressively reducing management layers and rooftops while also streamlining our go-to-market models and supply chain, bringing us closer to our customers.

謝謝你，凱文，祝大家早上好。請參閱幻燈片 6。我們第二季度的業績得益於持續專注於服務客戶、提高製造和供應鏈生產力，同時保持嚴格的支出紀律。此外，在本季度，我們啟動了大部分重組計劃，以簡化和精簡組織。我們正在積極減少管理層和頂層人員，同時簡化我們的市場模式和供應鏈，拉近我們與客戶的距離。

End-market trends continue to play out as anticipated with ongoing weakness in electronics, soft discretionary spending patterns in consumer retail and mixed trends in industrial end markets. Regionally, China's recovery has been slow, impacted by electronics and soft export trends. Europe remains challenged as the uncertain geopolitical situation persists, while end markets in the U.S. largely remain steady.

終端市場趨勢繼續如預期發展，電子產品持續疲軟，消費零售領域軟可自由支配支出模式以及工業終端市場混合趨勢。從地區來看，受電子產品和出口疲軟趨勢的影響，中國的複蘇緩慢。由於地緣政治局勢的不確定性持續存在，歐洲仍然面臨挑戰，而美國的終端市場基本保持穩定。

Second quarter total adjusted sales were $8 billion or down 4.7% year-on-year. This result was a little better than forecasted as we experienced a smaller-than-anticipated headwind from foreign currency translation of minus 0.9% versus a forecast of minus 2%. On an adjusted basis, organic sales declined 2.5% versus last year. This result included an expected year-on-year headwind of approximately $140 million or 1.7 percentage points related to lower disposable respirator demand. Excluding this impact, Q2 adjusted organic sales declined 0.8%.

第二季度調整後總銷售額為 80 億美元，同比下降 4.7%。這一結果略好於預期，因為外幣換算帶來的不利影響為負 0.9%，而預期為負 2%。調整後的有機銷售額比去年下降了 2.5%。這一結果包括與一次性呼吸器需求下降相關的預計同比逆風約為 1.4 億美元或 1.7 個百分點。排除這一影響，第二季度調整後的有機銷售額下降 0.8%。

On an adjusted basis, second quarter operating income was $1.5 billion with operating margins of 19.3% and earnings of $2.17 per share. These results included pretax restructuring charges of $212 million, which negatively impacted adjusted operating margins by 2.7 percentage points and earnings by $0.31 per share. Without the impact of restructuring, second quarter adjusted operating margins were 22% or up 40 basis points versus last year, and earnings were $2.48, up $0.03 year-on-year.

經調整後，第二季度營業收入為 15 億美元，營業利潤率為 19.3%，每股收益為 2.17 美元。這些結果包括 2.12 億美元的稅前重組費用，這對調整後營業利潤率產生了 2.7 個百分點的負面影響，對每股收益產生了 0.31 美元的負面影響。如果不考慮重組的影響，第二季度調整後營業利潤率為 22%，比去年同期增長 40 個基點，盈利為 2.48 美元，同比增長 0.03 美元。

Turning to other components that impacted results year-on-year. We were able to more than offset the impact of lower sales volumes and inflation impacts through improved manufacturing productivity, benefits from restructuring, strong spending discipline and selling prices while continuing to invest in the business. The net result was an increase to margins of 1.4 percentage points and $0.15 to earnings.

轉向同比影響結果的其他組成部分。通過提高製造生產力、重組帶來的好處、嚴格的支出紀律和銷售價格，同時繼續投資業務，我們能夠抵消銷量下降和通貨膨脹的影響。最終結果是利潤率提高了 1.4 個百分點，收益提高了 0.15 美元。

The previously mentioned headwind from disposable respirators resulted in a negative impact to operating margins of 50 basis points and to earnings of $0.09 per share. The carryover impact of higher raw material, logistics and energy cost inflation created a year-on-year headwind of approximately $30 million or a negative 30 basis points impact to operating margins and $0.04 to earnings.

前面提到的一次性呼吸器帶來的不利影響導致營業利潤下降 50 個基點，每股收益下降 0.09 美元。原材料、物流和能源成本通脹上升的結轉影響造成了約 3000 萬美元的同比逆風，即對營業利潤產生 30 個基點的負面影響，對收益產生 0.04 美元的負面影響。

As mentioned, foreign currency translation was a negative 0.9% impact to total sales. This resulted in a headwind of 20 basis points to margins and $0.02 to earnings per share. Divestitures, primarily Food Safety, did not impact margins but resulted in a year-on-year headwind of $0.03 to earnings per share. Finally, other financial items increased earnings by a net $0.06 per share year-on-year primarily driven by a lower share count, which was partially offset by a lower non-op pension benefit.

如前所述，外幣換算對總銷售額產生了 0.9% 的負面影響。這導致利潤率下降 20 個基點，每股收益下降 0.02 美元。剝離（主要是食品安全）並未影響利潤率，但導致每股收益同比下降 0.03 美元。最後，其他金融項目每股淨收益同比增加 0.06 美元，主要是由於股票數量減少，但非操作養老金福利減少部分抵消了這一影響。

In summary, our team's focus on driving productivity, executing restructuring actions and controlling spending is starting to yield results. These actions, coupled with improvement in global supply chains, drove sequential improvement in adjusted operating margins across all of our business groups. Excluding restructuring charges, adjusted operating margins improved 3.6 percentage points sequentially.

總之，我們團隊對提高生產力、執行重組行動和控制支出的關注已開始產生成果。這些行動，加上全球供應鏈的改善，推動了我們所有業務集團調整後營業利潤率的連續改善。不計重組費用，調整後營業利潤率環比提高 3.6 個百分點。

Please turn to Slide 7. Second quarter adjusted free cash flow was approximately $1.5 billion, up 44% year-on-year with conversion of 122%, up 50 percentage points versus last year's Q2. This year-on-year improvement was driven by our ongoing focus on working capital management, especially inventory, and the timing impact related to restructuring charges. Inventory was flat sequentially versus a typical historical build from Q1 to Q2. We continue to adjust production output to end markets and leverage the power of daily management and data and data analytics to increase the velocity of inventory turns.

請參閱幻燈片 7。第二季度調整後自由現金流約為 15 億美元，同比增長 44%，轉換率為 122%，比去年第二季度增長 50 個百分點。這一同比改善是由於我們持續關注營運資本管理（尤其是庫存）以及與重組費用相關的時間影響而推動的。與第一季度到第二季度的典型歷史庫存相比，庫存連續持平。我們不斷根據終端市場調整產量，並利用日常管理以及數據和數據分析的力量來提高庫存周轉速度。

Adjusted capital expenditures were $328 million in the quarter or similar year-on-year as we continue to invest in growth, productivity and sustainability. During the quarter, we returned $828 million to shareholders via dividend. Net debt at the end of Q2 stood at $11.7 billion or down 12% year-on-year.

隨著我們繼續投資於增長、生產力和可持續性，本季度調整後的資本支出為 3.28 億美元，與去年同期持平。本季度，我們通過股息向股東返還 8.28 億美元。第二季度末淨債務為 117 億美元，同比下降 12%。

Our business segments continue their long history of robust cash flow generation. In addition, our proven access to capital markets, along with the anticipated onetime dividend from the spin of Health Care at 3 to 3.5x EBITDA and 19.9% retained stake, will provide additional financial flexibility. This, combined with our existing strong capital structure, provides us the flexibility to continue to invest in the business, return capital to shareholders and meet the cash flow needs related to ongoing legal matters.

我們的業務部門延續了其強勁現金流生成的悠久歷史。此外，我們經過驗證的資本市場准入，加上醫療保健業務剝離帶來的預期一次性股息為 3 至 3.5 倍 EBITDA 和 19.9% 的保留股權，將提供額外的財務靈活性。這與我們現有強大的資本結構相結合，為我們提供了繼續投資業務、向股東返還資本並滿足與持續法律事務相關的現金流需求的靈活性。

Now please turn to Slide 9 for our business group performance. Starting with our Safety and Industrial business, which posted sales of $2.8 billion or down 4.6% organically. This result included a year-on-year headwind of approximately $140 million or 4.8 percentage points due to last year's COVID-related disposable respirator decline. Excluding disposable respirators, Safety and Industrial sales grew 0.2% organically in Q2.

現在請翻到幻燈片 9，了解我們業務組的表現。首先是我們的安全和工業業務，該業務銷售額為 28 億美元，有機下降 4.6%。由於去年與新冠病毒相關的一次性呼吸器數量下降，這一結果包括約 1.4 億美元或 4.8 個百分點的同比逆風。不包括一次性呼吸器，第二季度安全和工業銷售額有機增長 0.2%。

Organic growth was led by mid-single-digit increases in roofing granules and automotive aftermarket, while personal safety declined due to last year's disposable respirator comp. Excluding disposable respirators, personal safety was up high single digits organically.

有機增長是由屋頂顆粒和汽車售後市場的中個位數增長帶動的，而個人安全由於去年的一次性呼吸器競爭而下降。不包括一次性呼吸器，個人安全有機增長了高個位數。

Closure and masking declined due to slowdown in packaging and shipping activity, while industrial adhesives and tapes continue to be impacted by end-market softness in electronics. Adjusted operating income was $614 million or down 2.4% versus last year. Adjusted operating margins were 22.2%, up 70 basis points year-on-year and up 2 percentage points sequentially. The year-on-year improvement in margins was driven by productivity actions, strong spending discipline and price. Partially offsetting these benefits were headwinds from lower sales volume, restructuring costs and inflation impacts.

由於包裝和運輸活動放緩，封閉和遮蔽材料銷量下降，而工業粘合劑和膠帶繼續受到電子產品終端市場疲軟的影響。調整後營業收入為 6.14 億美元，比去年下降 2.4%。調整後營業利潤率為 22.2%，同比上升 70 個基點，環比上升 2 個百分點。利潤率的同比改善是由生產力行動、嚴格的支出紀律和價格推動的。銷量下降、重組成本和通脹影響帶來的不利因素部分抵消了這些好處。

Moving to Transportation and Electronics on Slide 10, which posted Q2 adjusted sales of $1.9 billion. Adjusted organic growth declined 2.4% year-on-year, largely due to the continued decline in demand for electronics. Our auto OEM business increased approximately 21% year-on-year, approximately 600 basis points higher than global car and light truck builds.

轉到幻燈片 10 上的運輸和電子產品，該幻燈片顯示第二季度調整後銷售額為 19 億美元。調整後有機增長同比下降 2.4%，主要是由於電子產品需求持續下降。我們的汽車OEM業務同比增長約21%，比全球轎車和輕卡製造高出約600個基點。

Our electronics business continues to be impacted by soft end-market demand for electronics. As a result, this business experienced a year-on-year decline in adjusted organic sales of approximately 22%. Electronic end markets continue to remain highly uncertain. We expect our year-on-year organic growth rates in electronics to remain negative in the second half, however, improve versus down nearly 30% in the first half as we start to lap easier comps.

我們的電子業務繼續受到電子產品終端市場需求疲軟的影響。因此，該業務的調整後有機銷售額同比下降約 22%。電子終端市場繼續保持高度不確定性。我們預計下半年電子產品的同比有機增長率將保持負值，但隨著我們開始進行更容易的比較，與上半年下降近 30% 的增長率相比有所改善。

Turning to the rest of Transportation and Electronics. Transportation safety grew high single digits organically, while commercial solutions and advanced materials were up low single digits year-on-year. Transportation and Electronics delivered $369 million in adjusted operating income, down 19% year-on-year. Adjusted operating margins were 19.8%, down 3.6 percentage points year-on-year, however, increased 3.1 percentage points sequentially. Margin headwinds were driven by sales volume declines, restructuring costs and inflation impacts. These headwinds were partially offset by benefits from strong spending discipline, productivity actions and pricing.

轉向交通和電子領域的其餘部分。運輸安全有機增長高個位數，而商業解決方案和先進材料同比增長低個位數。運輸和電子業務調整後營業收入為 3.69 億美元，同比下降 19%。調整後營業利潤率為 19.8%，同比下降 3.6 個百分點，但環比上升 3.1 個百分點。銷量下降、重組成本和通脹影響推動了利潤率的逆風。這些不利因素被強有力的支出紀律、生產力行動和定價帶來的好處部分抵消。

Looking at our Health Care business on Slide 11. Q2 sales were $2.1 billion with organic growth up slightly versus last year. Organic sales in oral care were up low single digits year-on-year, and Medical Solutions business grew slightly. Separation and purification and Health Information Systems declined mid-single digits and low single digits, respectively. These businesses continue to be impacted by lower post-COVID-related biopharma demand and ongoing stress on hospital budgets. As procedure volumes continue to improve, hospital budgets stabilize and we work through post-COVID-related impacts, we are confident in the long-term outlook of this business.

看看幻燈片 11 上我們的醫療保健業務。第二季度銷售額為 21 億美元，有機增長比去年略有增長。口腔護理領域的有機銷售額同比增長較低個位數，醫療解決方案業務略有增長。分離和純化以及健康信息系統分別下降了中個位數和低個位數。這些業務繼續受到新冠疫情后相關生物製藥需求下降和醫院預算持續壓力的影響。隨著手術量持續增加、醫院預算穩定以及我們努力克服新冠疫情后的相關影響，我們對該業務的長期前景充滿信心。

Health Care's second quarter operating income was $411 million, down 16% year-on-year. Operating margins were 19.8%, down 2.8 percentage points year-on-year, however, increased sequentially 1.9 percentage points. Year-on-year operating margins were impacted by lower sales volume, restructuring costs and inflation impacts. These headwinds were partially offset by benefits from strong spending discipline, productivity actions and pricing.

醫療保健第二季度營業收入為4.11億美元，同比下降16%。營業利潤率為19.8%，同比下降2.8個百分點，但環比上升1.9個百分點。同比營業利潤率受到銷量下降、重組成本和通貨膨脹的影響。這些不利因素被強有力的支出紀律、生產力行動和定價帶來的好處部分抵消。

Finally, on Slide 12. Our Consumer business posted second quarter sales of $1.3 billion. Organic sales declined 2.2% year-on-year as discretionary spending on hardline categories remains soft. We expect this trend to continue into the second half of the year.

最後，在幻燈片 12 上。我們的消費者業務公佈第二季度銷售額為 13 億美元。由於強硬品類的可自由支配支出仍然疲軟，有機銷售額同比下降 2.2%。我們預計這一趨勢將持續到今年下半年。

Organic sales grew slightly in home, health and auto care, while home improvement and stationery and office businesses both declined. Consumer second quarter operating income was $235 million, down 5% compared to last year, with operating margins of 18.2%, down 40 basis points year-on-year but up 3.2 percentage points sequentially. The year-on-year decline in operating margins was driven by lower sales volumes, restructuring costs and inflation impacts. These headwinds were partially offset by benefits from strong spending discipline, productivity actions and pricing.

家居、健康和汽車護理業務的有機銷售額略有增長，而家居裝修、文具和辦公業務則雙雙下降。消費者第二季度營業收入為2.35億美元，較去年下降5%，營業利潤率為18.2%，同比下降40個基點，但環比上升3.2個百分點。營業利潤同比下降的原因是銷量下降、重組成本和通脹影響。這些不利因素被強有力的支出紀律、生產力行動和定價帶來的好處部分抵消。

That concludes our remarks on the second quarter. Please turn to Slide 14 for an update on our full year expectations. During our January earnings call, we highlighted that we expected macroeconomic and end-market uncertainties to continue to persist into the year. In addition, we noted that we were starting to see the healing of supply chains. However, we expected to continue to see headwinds from raw material availability and inflation, although at a lower level than 2022.

我們對第二季度的評論到此結束。請參閱幻燈片 14，了解我們全年預期的最新情況。在一月份的財報電話會議上，我們強調，我們預計宏觀經濟和終端市場的不確定性將持續到今年。此外，我們注意到我們開始看到供應鏈的癒合。然而，我們預計原材料供應和通脹將繼續面臨阻力，儘管水平低於 2022 年。

We also stated that we were not satisfied with our performance and we would be taking a deeper look at everything we do as we continue to prepare for the spin of Health Care. As a result, we noted that as we move through the year, we would be taking additional actions to improve supply chain performance, drive simplification and bring us closer to our customers.

我們還表示，我們對自己的表現並不滿意，在繼續為醫療保健的發展做準備的同時，我們將更深入地審視我們所做的一切。因此，我們指出，在這一年中，我們將採取更多行動來提高供應鏈績效、推動簡化並拉近我們與客戶的距離。

While we have more work to do, let me take a moment to provide a few examples on the progress we have made through the first half of the year. Starting with our sales performance. While end markets continue to play out as expected, Q1 and Q2 revenue was slightly above our expectations. Our teams continue to relentlessly focus on serving our customers, work down backlogs and leverage the use of data and data analytics to drive improvements in demand planning.

雖然我們還有更多工作要做，但請允許我花點時間提供一些例子，說明我們今年上半年取得的進展。從我們的銷售業績開始。儘管終端市場繼續按預期發展，但第一季度和第二季度的收入略高於我們的預期。我們的團隊繼續不懈地專注於為客戶提供服務，減少積壓工作，並利用數據和數據分析來推動需求規劃的改進。

Next, as we have mentioned, we are aggressively addressing structure. We are on track with our actions to reduce structure across the company, including at corporate, in our business segments and in manufacturing supply chain. We have initiated the transition of 24 countries to an export model, partnering with local distribution to serve those customers and markets.

接下來，正如我們所提到的，我們正在積極解決結構問題。我們正在採取行動減少整個公司的結構，包括在公司、我們的業務部門和製造供應鏈中。我們已啟動 24 個國家/地區向出口模式的轉型，與當地分銷商合作為這些客戶和市場提供服務。

In addition, we have made good progress in reducing corporate structure, including the exit of our aviation operations and our conference center in Northern Minnesota. And finally, we continue to adjust our production levels to end-market trends, manage inventory and aggressively control spending.

此外，我們在減少公司結構方面取得了良好進展，包括退出我們的航空業務和明尼蘇達州北部的會議中心。最後，我們繼續根據終端市場趨勢調整生產水平，管理庫存並積極控制支出。

As a result of our actions, along with improvements in global supply chains and raw material availability, we are able to deliver first half performance better than anticipated, particularly for margins, earnings and cash flow.

由於我們採取的行動，加上全球供應鍊和原材料供應的改善，我們上半年的業績優於預期，特別是在利潤、收益和現金流方面。

In the first half of the year, on an adjusted basis, we delivered sales of $15.7 billion, operating margins of 18.6% and earnings per share of $4.14. These results included $264 million in pretax restructuring charges or a headwind to margins of 1.7 percentage points and to earnings of $0.38 per share. In addition, our strong operational execution and working capital management, particularly inventories, helped us to deliver $2.3 billion of adjusted free cash flow with a conversion rate of 105%.

今年上半年，經調整後，我們的銷售額為 157 億美元，營業利潤率為 18.6%，每股收益為 4.14 美元。這些結果包括 2.64 億美元的稅前重組費用或利潤率下降 1.7 個百分點以及每股收益 0.38 美元的不利因素。此外，我們強大的運營執行力和營運資金管理（尤其是庫存）幫助我們實現了 23 億美元的調整後自由現金流，轉換率為 105%。

Turning to guidance. We are raising our full year adjusted earnings expectation as a result of our strong first half operational execution as evidenced by an improving margin rate. We now expect full year's earnings in the range of $8.60 to $9.10 versus a prior range of $8.50 to $9.

轉向指導。由於我們上半年的運營執行力強勁，利潤率的提高證明了這一點，我們正在提高全年調整後的盈利預期。我們現在預計全年盈利範圍為 8.60 美元至 9.10 美元，而之前的範圍為 8.50 美元至 9 美元。

We continue to closely monitor end-market trends across all our businesses, particularly in electronics, consumer retail, industrial and China and have yet to see signs of improvement in trends. Therefore, we currently see organic growth tracking to the lower end of our range of flat to minus 3%. This reflects our performance to date along with our year-on-year headwind from disposable respirators tracking to the high end of our anticipated range or down approximately $550 million along with continued macro and end-market uncertainty. And finally, our full year adjusted free cash flow conversion expectation remains unchanged in a forecasted range of 90% to 100%.

我們繼續密切關注所有業務的終端市場趨勢，特別是在電子、消費零售、工業和中國領域，但尚未看到趨勢改善的跡象。因此，我們目前預計有機增長將趨於持平至負 3% 區間的下限。這反映了我們迄今為止的業績以及一次性呼吸器追踪到我們預期範圍的高端或減少約 5.5 億美元以及持續的宏觀和終端市場不確定性帶來的同比逆風。最後，我們全年調整後的自由現金流轉換預期保持在 90% 至 100% 的預測範圍內不變。

Looking ahead to the third quarter. We expect end-market trends to be very similar to Q2. Hence, we anticipate third quarter adjusted sales to be approximately $8 billion. The impact from the COVID-related decline in disposable respirators and last year's exit of Russia is anticipated to be a year-on-year headwind to sales of approximately $130 million or 1.5 percentage points.

展望第三季度。我們預計終端市場趨勢將與第二季度非常相似。因此，我們預計第三季度調整後銷售額約為 80 億美元。與新冠疫情相關的一次性呼吸器銷量下降以及去年俄羅斯退出的影響預計將導致銷售額同比下降約 1.3 億美元或 1.5 個百分點。

Third quarter pretax restructuring costs are expected to be in the range of $125 million to $175 million with pretax benefits of $125 million to $150 million. Taken together, we expect third quarter adjusted earnings per share will be in the range of $2.25 to $2.40.

第三季度稅前重組成本預計在 1.25 億至 1.75 億美元之間，稅前收益為 1.25 億至 1.5 億美元。綜合來看，我們預計第三季度調整後每股收益將在 2.25 美元至 2.40 美元之間。

To wrap up, we continue to have a strong focus on serving our customers, improving the execution in our supply chain, making progress in our restructuring actions, managing costs and investing in the business while navigating ongoing end-market weakness. We expect our actions will continue to build momentum and improve our organic growth, margins and cash flow performance into the future.

總而言之，我們繼續重點關注服務客戶、改善供應鏈的執行、在重組行動、管理成本和投資業務方面取得進展，同時應對終端市場持續疲軟的局面。我們預計我們的行動將繼續積聚動力，並改善我們未來的有機增長、利潤率和現金流表現。

I want to thank our customers and suppliers for their partnership and the 3M employees for their hard work and dedication as they continue to deliver for our customers and shareholders. I am confident in our future. As we have said, as we exit 2023, we will be a stronger, leaner and more focused 3M.

我要感謝我們的客戶和供應商的合作夥伴關係，以及 3M 員工的辛勤工作和奉獻精神，他們繼續為我們的客戶和股東提供服務。我對我們的未來充滿信心。正如我們所說，當我們退出 2023 年時，我們將成為一個更強大、更精簡、更專注的 3M。

That concludes my remarks. We will now take your questions.

我的發言到此結束。我們現在將回答您的問題。

(Operator Instructions) Our first question comes from the line of Andrew Obin with Bank of America.

（操作員說明）我們的第一個問題來自美國銀行的安德魯·奧賓（Andrew Obin）。

Just a question on the outlook. I think operationally, second quarter was quite strong. And I appreciate your commentary on organic growth, but where is the caution in terms of operational results in the second half? What segments, what verticals are you particularly sort of concerned about, as I said, not to raise guidance more given strength in the second quarter?

只是關於前景的問題。我認為從運營角度來看，第二季度相當強勁。我很欣賞你對有機增長的評論，但下半年運營業績的謹慎之處在哪裡？正如我所說，您特別關注哪些細分市場、哪些垂直領域，鑑於第二季度的強勁勢頭，不要進一步提高指導？

Thanks, Andrew. So as I mentioned in my prepared remarks, when we came into the year, we thought we would have end markets that remain uncertain as well as economic uncertainty would exist. Looking at where are we in the first half, as I've called out, electronics continue to remain soft. We were nearly down 30% in the first half. We had consumer spending continue to remain soft. The consumer discretionary spending continue to remain soft. China remained soft in the first half.

謝謝，安德魯。正如我在準備好的發言中提到的，當我們進入這一年時，我們認為終端市場仍然不確定，經濟不確定性也將存在。正如我所指出的，看看我們上半年的情況，電子產品繼續保持疲軟。上半年我們的業績下滑了近 30%。我們的消費者支出繼續保持疲軟。消費者可自由支配支出繼續保持疲軟。中國上半年依然疲軟。

And then when you put all that together, you look at it and say, what are the trends we are looking for in the second half. And so what we are watching is electronics and see whether it's hit its bottom or not, we believe that electronic softness will remain. It's still going to be negative for the year but less negative in the second half.

然後，當你把所有這些放在一起時，你會說，我們在下半年尋找的趨勢是什麼。因此，我們正在關注電子產品，看看它是否觸底，我們相信電子產品的疲軟將繼續存在。今年仍將是負數，但下半年負數會減少。

Consumer spending has remained soft in the first half. We believe it will remain soft in the second half. So we are watching back-to-school season and holiday season. Industrial activity has remained mixed. There are certain markets that continue to remain strong. There are certain markets that we are seeing a little bit of destocking in there.

上半年消費者支出依然疲軟。我們相信下半年將保持疲軟。所以我們正在關注返校季和假期。工業活動依然喜憂參半。某些市場繼續保持強勁。我們看到某些市場的庫存有所減少。

Health care elective procedures, we believe, will continue to go up on a sequential basis. At the same time, biopharma and Health Information Systems are still constrained. Biopharma is going through COVID-related demand and HIS, or Health Information Systems, is impacted by stressed hospital budgets.

我們相信，醫療保健選擇性手術將繼續按順序增加。與此同時，生物製藥和健康信息系統仍然受到限制。生物製藥正在經歷與新冠病毒相關的需求，而 HIS（健康信息系統）則受到醫院預算緊張的影響。

As I've also mentioned in my prepared remarks, DR right now looks like it's going to be at the worst end of our range of down $550 million versus we thought it was going to be $450 million to $550 million coming into the year. And in China, we have -- second quarter was weak, down 4% on lower comps, and we currently have not seen much of the recovery show up in China. Plus as a reminder, it was a tough comp in -- through 3Q of last year as China was coming out of COVID.

正如我在準備好的發言中提到的那樣，DR 現在看來將處於我們下降 5.5 億美元範圍內的最差一端，而我們預計今年將下降 4.5 億至 5.5 億美元。在中國，我們第二季度表現疲軟，由於較低的比較，下降了 4%，而且我們目前還沒有看到中國出現太多複蘇。另外提醒一下，去年第三季度中國剛剛擺脫新冠疫情，這是一場艱難的比賽。

So when you put all that together, Q3 is very similar to 2Q. And overall, the trends that we see make us feel that where we are right now in the first half and where we see trends going in the second half, we feel that from a revenue guide basis, we'll be at the lower end of our guide that we had given, which was flat to minus 3% coming into the year.

因此，當您將所有這些放在一起時，Q3 與 2Q 非常相似。總體而言，我們看到的趨勢讓我們感到，上半年我們現在所處的位置以及下半年的趨勢，我們認為從收入指導的基礎來看，我們將處於我們給出的指導的下限，進入今年將持平至-3%。

But with that said, Andrew, if markets change, we will definitely be there to serve it. The teams are executing well as you have seen in the results that we have announced. We've got momentum on supply chain and supply chain execution. The team is doing a great job on restructuring and driving the cost as well as the team has hyper focus on making sure we are continuing to be prudent on our cost spending. But as we see these markets start to evolve in the second half and into 2024 and beyond, we won't hesitate to invest in growth in the high-growth markets because ultimately, we are in for the long run. Hope I answered your question, Andrew.

但話雖如此，安德魯，如果市場發生變化，我們肯定會在那裡提供服務。正如您在我們宣布的結果中看到的那樣，團隊執行得很好。我們在供應鍊和供應鏈執行方面擁有動力。該團隊在重組和降低成本方面做得很好，並且團隊高度重視確保我們繼續對成本支出保持謹慎。但當我們看到這些市場在下半年開始發展並持續到 2024 年及以後時，我們會毫不猶豫地投資於高增長市場的增長，因為最終我們是為了長期發展。希望我回答了你的問題，安德魯。

Yes. No, I mean it's still sort of margin was pretty solid. But let me drill down on consumer electronics maybe a little bit more. What would it take for this business to finally turn positive? Or is it just some time early next year, the comps get so easy that it can't decline anymore? But what KPIs in terms of end markets are you watching?

是的。不，我的意思是它的利潤率仍然相當穩定。但讓我深入研究一下消費電子產品。這項業務需要什麼才能最終轉好？或者只是明年初的某個時候，比較變得如此輕鬆以至於無法再下降？但您關注的終端市場的 KPI 是什麼？

Yes, Andrew, maybe I'll pick up on Monish's description of what we're looking at in the second half. And if you look a little further at the consumer electronics, we saw a soft first half in -- across all consumer electronics category, smartphones, TVs, notebooks, tablets. It -- you just saw -- and it was impacting our results as Monish outlined.

是的，安德魯，也許我會了解莫尼什對我們在下半場看到的內容的描述。如果你進一步觀察消費電子產品，我們會看到所有消費電子產品類別、智能手機、電視、筆記本電腦、平板電腦的上半年表現疲軟。正如莫尼什概述的那樣，它——你剛才看到了——它正在影響我們的結果。

And as we look into the second half, maybe there starts to be projected recovery in the markets in fourth quarter, but really third quarter looks like the first half. And I would say picking up on inventory in the channel, we see destocking in a slowdown like this. And so we expect some destocking to continue in the electronics channel. So as we go into third quarter, that's kind of forming the view that we have.

當我們展望下半年時，預計第四季度市場可能會開始復蘇，但實際上第三季度看起來就像上半年一樣。我想說的是，隨著渠道庫存的增加，我們看到庫存的去化速度正在放緩。因此，我們預計電子產品渠道將繼續減少庫存。因此，當我們進入第三季度時，我們的觀點就形成了。

Now what would we need to see? We would need to see a turnaround in demand in those particular build rates in those end markets. And we'll see, I think, confidence show up in the inventory in the channel as well. So we're watching each of those categories closely in consumer electronics. And we also keep an eye on semiconductor capacity as well and how that's being -- how production is changing there. That gives you an indication of demand as well.

現在我們需要看到什麼？我們需要看到這些終端市場的特定建造率的需求出現轉變。我認為，我們也會看到渠道庫存中的信心也會顯現出來。因此，我們正在密切關註消費電子產品中的每一個類別。我們還密切關注半導體產能及其現狀——生產如何變化。這也為您提供了需求的指示。

Our next question is from the line of Andy Kaplowitz with Citigroup.

我們的下一個問題來自花旗集團的安迪·卡普洛維茨（Andy Kaplowitz）。

So I just want to delve in a little more into your margin performance in Q2 and what it means for your second half. I mean, obviously, you had a nice step-up in sequential margin despite absorbing the 2.7% of pretax charges. So how do we think about the durability of the productivity actions, the positive price versus cost that looked like what was going on in the quarter? And how do you think about margin performance embedded in Q3, Monish, in the second half as it looks like you're forecasting margin below Q2 and Q3?

因此，我只想更深入地了解第二季度的利潤率表現以及這對下半年意味著什麼。我的意思是，很明顯，儘管吸收了 2.7% 的稅前費用，但您的連續利潤率有了很大的提高。那麼，我們如何看待生產力行動的持久性，以及本季度所發生的積極價格與成本的關係？ Monish，您如何看待下半年第三季度的利潤率表現，因為您預計利潤率將低於第二季度和第三季度？

Yes, Andy, I'll just start first with your question on sustainability, et cetera. There have been a few questions on cadence of restructuring charges and benefits. And we have attached an appendix that shows you by quarter where we expect to be for 2023, which is charges in the range of $400 million to $450 million and benefits in the range of $400 million to $450 million, so self-funding.

是的，安迪，我首先從你關於可持續性等問題開始。關於重組費用和福利的節奏存在一些問題。我們附上了一份附錄，按季度向您展示了我們對 2023 年的預期，即費用在 4 億至 4.5 億美元之間，福利在 4 億至 4.5 億美元之間，因此需要自籌資金。

The total program, as a reminder, is between $700 million to $900 million of charge and $700 million to $9 million -- $900 million of benefits. From a cadence perspective, depending on how the restructuring announcements play itself out, we've given you 2023, we expect 2024 charges by the end of 2024 to have pretty much taken most of the restructuring charges. The benefits, of course, show up in '25 and beyond. And once all these charges come to an end, the benefit is between $700 million to $900 million.

提醒一下，整個計劃的費用為 7 億至 9 億美元，福利為 7 億至 900 萬美元，即 9 億美元。從節奏的角度來看，根據重組公告如何發揮作用，我們給了您 2023 年，我們預計到 2024 年底，2024 年的費用將幾乎佔據大部分重組費用。當然，好處會在 25 年及以後顯現出來。一旦所有這些費用結束，收益將在 7 億至 9 億美元之間。

Your second piece on where are we starting to see margin, as you have seen coming into the second quarter, one of the reasons for us able to beat expectations in the second quarter was driving supply chain efficiency. So factories started to heal better, raw materials started to flow better, which allowed us to have longer runs.

您關於我們在哪裡開始看到利潤的第二篇文章，正如您在第二季度看到的那樣，我們能夠在第二季度超出預期的原因之一是提高供應鏈效率。因此，工廠開始更好地恢復，原材料開始更好地流動，這使我們能夠有更長的生產時間。

But at the same time, the work that the supply chain team has done under Peter Gibbons is starting to drive the execution, and we are starting to see that in the results. And then, of course, the team is hyper-focused on cost control.

但與此同時，供應鏈團隊在 Peter Gibbons 的領導下所做的工作正在開始推動執行，我們開始在結果中看到這一點。當然，團隊也非常注重成本控制。

So to answer your question on second half and how this plays out, one is you do have to adjust for the restructuring cost by quarter, and you will see that the margin rate is climbing. Secondly, when we came into the year, we had said OI or operating margin will be somewhere in that 18.5% to 19% range. Sitting right now with a lower revenue number with a higher EPS number, we believe that we'll be somewhere in that 19.5% to 20% range, which includes all the charges and all the benefits.

因此，要回答你關於下半年的問題以及結果如何，一是你必須按季度調整重組成本，你會看到利潤率正在攀升。其次，當我們進入今年時，我們曾說過 OI 或營業利潤率將在 18.5% 至 19% 的範圍內。目前，收入數字較低，每股收益數字較高，我們相信我們將處於 19.5% 至 20% 的範圍內，其中包括所有費用和所有收益。

What we are watching also is, to answer some other of your points, raw material and energy cost inflation coming into the year was $150 million to $250 million. We have now changed that to $150 million to $200 million. So we are starting to see the benefit there.

我們還關注的是，為了回答您的其他一些觀點，今年原材料和能源成本通脹為 1.5 億至 2.5 億美元。我們現在已將其更改為 1.5 億至 2 億美元。所以我們開始看到那裡的好處。

What we have seen so far, Andy, is disinflation, which is lower inflation than last year. We are seeing the benefit in logistics. But however, some of our commodities still continue to be inflation -- inflationary and labor, frankly, is sticky from an inflation perspective in those commodities. But that also will play itself out as events play out through this year and into 2024 and beyond. And then we will continue to be focused on cost.

安迪，到目前為止，我們看到的是通貨緊縮，即通脹低於去年。我們看到了物流方面的好處。但是，我們的一些商品仍然存在通貨膨脹——坦率地說，從通貨膨脹的角度來看，這些商品的通貨膨脹和勞動力是粘性的。但這也將隨著今年、2024 年及以後事件的發生而自然發生。然後我們將繼續關注成本。

Another item for us in the second quarter -- second half is as we are getting ready for the spin of Health Care, we'll be, of course, standing up the new management team. Mike already talked about that in his prepared remarks. There will be some cost incurred from a -- as these -- as we have management teams appointed that start getting ready to be -- have Health Care be a stand-alone company.

我們第二季度的另一件事是——下半年，當我們為醫療保健業務的發展做好準備時，我們當然會支持新的管理團隊。邁克已經在他準備好的講話中談到了這一點。當我們任命管理團隊開始準備讓醫療保健成為一家獨立的公司時，將會產生一些成本。

And then on -- I would just say on another housekeeping item is other financial, when we came into the year, we had said it would be minus $0.10 to flat on a year-over-year basis. We are updating that to minus $0.05 to flat -- minus $0.05 to plus $0.05, which on the midpoint is 0. First half, we got benefited by $0.11. Second half, it will be a negative $0.11, but that's on a year-over-year basis. So I gave you a lot, Andy, just to make sure that you have enough information as you build your models out and you look at us in totality.

然後，我想說的是，另一個家政項目是其他財務項目，當我們進入這一年時，我們曾說過，同比持平將是負 0.10 美元。我們將其更新為負 0.05 美元至持平——負 0.05 美元至正 0.05 美元，中點為 0。上半年，我們受益於 0.11 美元。下半年，它將為負 0.11 美元，但這是同比的。安迪，所以我給了你很多信息，只是為了確保你在構建模型並全面觀察我們時擁有足夠的信息。

No, that's very helpful, Monish. And then just for the next question, maybe just a little more color into industrial businesses within Safety and Industrial. I think you'd guided to down low single digits for the year and you continue to be down mid-single digits in Q2. I know last quarter, you described industrial markets as mixed, same description this quarter. But maybe you can characterize markets for us. Do you still see low single-digits decline for the year in industrial?

不，這很有幫助，莫尼什。對於下一個問題，也許只是對安全和工業領域的工業業務進行更多的了解。我認為您今年的指導方針是下降低個位數，並且在第二季度繼續下降中個位數。我知道上個季度，您將工業市場描述為好壞參半，本季度的描述也是如此。但也許你可以為我們描述市場的特徵。您仍然認為工業今年會出現低個位數的下降嗎？

Yes, Andy, the quarter down mid-single digits, that was also impacted by disposable respirators down as we talked about, so about flat for the quarter outside of disposable respirators. And as Monish outlined, we're going to see more to the high end of our range of what we expected for disposable respirator declines in the year, which means in third quarter, we'll see an impact from that as well.

是的，安迪，本季度下降了個位數中位數，這也受到我們談到的一次性呼吸器下降的影響，所以除一次性呼吸器之外，本季度基本持平。正如莫尼什所概述的那樣，我們將看到今年一次性呼吸器下降幅度超出我們預期的範圍的高端，這意味著在第三季度，我們也將看到由此產生的影響。

And when we talk about mix, it's really across the portfolio. We're seeing some strengths in our roofing granules, our automotive aftermarket business. The demand for car repair and around that business is strong. We saw some softness in electrical markets and abrasives. Our industrial adhesives and tapes business is impacted by electronics. So that's feeding into the industrial business as well.

當我們談論混合時，它實際上涉及整個產品組合。我們在屋頂顆粒和汽車售後市場業務中看到了一些優勢。汽車維修及相關業務的需求強勁。我們看到電氣市場和磨料市場出現一些疲軟。我們的工業粘合劑和膠帶業務受到電子產品的影響。這也影響到了工業業務。

Personal safety, excluding disposable respirators, has been showing strength, up high single digits in the quarter. So that's kind of the mix picture. I -- we're also in the channel, we're seeing some caution from distributors. They're cautious about the outlook for industrial markets. They're also seeing the benefit of improving and healing supply chains. So cycle times are improving, and they're pulling back on some inventory. So that's having some impact on our businesses as we come through the quarter and our outlook for the second half. So it's a mix.

個人安全（不包括一次性呼吸器）一直表現強勁，本季度增長了高個位數。這就是混合圖片。我 - 我們也在渠道中，我們看到分銷商的一些謹慎態度。他們對工業市場的前景持謹慎態度。他們還看到了改善和修復供應鏈的好處。因此，週期時間正在改善，並且他們正在減少一些庫存。因此，這對我們本季度的業務以及下半年的前景產生了一些影響。所以這是一個混合體。

And the impact from China is part of that as well. We're seeing the slowdown in the markets there or the slow first half and not yet seeing an upturn in that and looking for that as we go into the second half. So that kind of gives you a view across the -- what we mean by mix markets.

來自中國的影響也是其中的一部分。我們看到那裡的市場放緩或上半年緩慢，但尚未看到市場好轉，並在進入下半年時尋找這種情況。因此，這可以讓您了解我們所說的混合市場的含義。

Our next question is from the line of Scott Davis with Melius Research.

我們的下一個問題來自 Melius Research 的 Scott Davis。

I'm curious, just overall, are you seeing areas or particular products or markets where you're getting some pressure to drop your prices, particularly given some of the weaker demand? Or do you feel like you can hold on to some of those price increases that you've gotten the last couple of years?

我很好奇，總體而言，您是否看到某些領域或特定產品或市場面臨降價壓力，特別是考慮到一些需求疲軟的情況？或者你覺得你可以堅持過去幾年的一些價格上漲嗎？

So yes, Scott, I would say as you see -- Monish called it disinflation, moderating of inflation. You're going to start to have discussions around impact on price. I would say when we look at it, our price value is in the right place where we are, where we face our markets.

所以，是的，斯科特，我會說，正如你所看到的——莫尼什稱之為通貨緊縮，通貨膨脹的緩和。您將開始討論對價格的影響。我想說，當我們審視它時，我們的價格價值處於我們所處的正確位置，處於我們面向市場的正確位置。

You -- I would say the area where you have the most discussion, typically, are retail markets. It's an ongoing discussion, it always is. Even in the times of high inflation, it's a strong discussion. But price is a topic everywhere, right? We're confident that we're priced in the right place as we come through this market dynamic broadly. So we're not looking at pressure specific in one segment or another. But I would say the conversation is something that we anticipate as we see disinflation and eventually, we see deflation, then we would expect it to ramp up.

我想說，你們討論最多的領域通常是零售市場。這是一個持續的討論，一直如此。即使在高通脹時期，這也是一個激烈的討論。但價格是無處不在的話題，對吧？我們相信，隨著我們廣泛經歷這一市場動態，我們的定價處於正確的位置。因此，我們並不是在考慮某個細分市場的特定壓力。但我想說，這種對話是我們所預料到的，因為我們看到通貨緊縮，最終我們看到通貨緊縮，然後我們預計通貨緊縮會加劇。

Okay. That's helpful. And guys, a little bit bigger-picture question. When you talk about supply chain streamlining, what do you mean exactly? I mean, how do you balance kind of the -- I'm assuming that means kind of localization. But between balancing between resiliency and not being relying on any particular supply partner, but sometimes there's added costs that come into resiliency. So how do you think about streamlining and the cost-benefit of streamlining? And maybe you can give us a more concrete example of that to help us understand what that means specifically.

好的。這很有幫助。伙計們，有一個更宏觀的問題。當您談論供應鏈精簡時，您到底在說什麼？我的意思是，你如何平衡——我假設這意味著某種本地化。但是，在彈性和不依賴任何特定供應合作夥伴之間取得平衡，但有時彈性會增加成本。那麼您如何看待精簡以及精簡的成本效益？也許你可以給我們一個更具體的例子來幫助我們理解這具體意味著什麼。

Yes, Scott, maybe I'll step back for a second. As we came through the pandemic, we saw a lot of factors impacting our supply chains. Inflation, labor shortages, raw material availability, all that was impacting our production runs and really creating inefficiency in our factories, impacting yields. And as we came into this year, we started to see supply chains healing. We're seeing labor availability improving. Our -- Monish highlighted, we're still seeing inflation in labor.

是的，斯科特，也許我會退後一步。當我們度過這場大流行時，我們看到了很多影響我們供應鏈的因素。通貨膨脹、勞動力短缺、原材料供應，所有這些都影響了我們的生產運行，並真正導致我們工廠效率低下，影響了產量。進入今年，我們開始看到供應鏈正在癒合。我們看到勞動力供應狀況有所改善。莫尼什強調，我們仍然看到勞動力通脹。

Raw material availability has improved. And we put a lot of focus during the most difficult times in the supply chain disruptions on multiple sources for raw materials. And we were engaging with many suppliers, hundreds of suppliers, on a monthly basis to try to manage those raw material interruptions. As they've healed, that's become much more focused on a few raw materials. We're seeing much better availability.

原材料供應情況有所改善。在供應鏈中斷的最困難時期，我們將重點放在多個原材料來源上。我們每月與許多供應商（數百家供應商）合作，試圖管理這些原材料中斷的問題。隨著他們的痊癒，他們變得更加關註一些原材料。我們看到可用性好多了。

All this is helping us run our factories a little more efficiently. We're seeing improvements in yield. We're seeing improvements in logistics as supply chains heal more broadly. And so as we stepped into the restructuring, we were taking stock of what we learned during the pandemic, what we learned during the restructuring, also what we learned as we moved to our global operating model.

所有這些都有助於我們更有效地運營工廠。我們看到產量有所提高。隨著供應鏈更廣泛地恢復，我們看到物流有所改善。因此，當我們進入重組時，我們正在評估我們在大流行期間學到的東西、我們在重組過程中學到的東西，以及我們在轉向全球運營模式時學到的東西。

And so streamlining is really taking advantage of all those learnings and I would say also taking advantage of investments in data and data analytics, our digital strategies, investing in productivity, more broadly in our manufacturing models. And so streamlining is focused broadly across our supply chain. I talked about we're working to improve every aspect of it, better, more disciplined planning, taking advantage of data and analytics, stronger focus on sourcing, that dual sourcing, taking advantage of that strategy, what we can learn in the plants about running more efficiently and how we can manage logistics more efficiently. So plan, source, make, deliver, we're streamlining across that really taking advantage of the learnings and I would also say stepping into aligning to customers in our business models.

因此，精簡實際上是利用所有這些經驗教訓，我想說的是，還利用了對數據和數據分析、我們的數字戰略、對生產力的投資，更廣泛地對我們的製造模式的投資。因此，精簡是我們整個供應鏈的廣泛關注點。我談到我們正在努力改進它的各個方面，更好、更嚴格的規劃，利用數據和分析，更加註重採購，雙重採購，利用這一戰略，我們可以在工廠中學到什麼關於更有效地運行以及我們如何更有效地管理物流。因此，計劃、採購、製造、交付，我們正在簡化流程，真正利用所學到的知識，我還想說，要在我們的業務模式中與客戶保持一致。

And it's going to continue to be an opportunity for improvement. We'll continue to evolve this. But the restructuring actions really try to incorporate those learnings. And it wasn't a top-down, we're going to take out so much head count. It was how do we restructure, realign, streamline our supply chain plan, source, make, deliver to take advantage of all that and position us in the markets that we're in, but also position us to be ready for a stronger performance as we go forward in the future.

這將繼續成為改進的機會。我們將繼續改進這一點。但重組行動確實試圖吸收這些經驗教訓。這不是自上而下的，我們要削減這麼多人手。問題在於我們如何重組、重新調整、簡化我們的供應鏈計劃、採購、製造、交付，以利用所有這些優勢，使我們在我們所處的市場中定位，同時也使我們為未來取得更強勁的業績做好準備。

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

我們的下一個問題來自高盛的喬·里奇。

I appreciate the additional details on the restructuring, Monish. Just -- my first question really just around that deflationary point. Things are getting a little bit better or better than you originally expected. It seems like most of the inflationary headwinds have already occurred for the year. And so do you expect that to turn positive, I guess, by 4Q? Or is that something that could turn positive in the 3Q numbers?

我很欣賞有關重組的更多細節，莫尼什。只是——我的第一個問題實際上就在通貨緊縮點附近。事情正在變得比你最初預期的要好一些或更好。看來今年大部分通脹逆風已經發生。我想，您預計到第四季度情況會轉為正數嗎？或者說這可能會在第三季度的數據中轉為正數？

Yes. So Joe, I think you have to break this up into multiple pieces. What I've said before is what we are seeing is lower inflation than a year-over-year. Our headwinds are somewhere in the range of $150 million to $200 million between electricity and carryover of raw material inflation. We have done $100 million in the first quarter and we have done, I would say, between $25 million in the second. So we still got a little to go on carryover.

是的。所以喬，我認為你必須把它分成多個部分。我之前說過，我們看到的通脹率低於去年同期。電力和原材料通脹結轉之間的阻力在 1.5 億至 2 億美元之間。我們第一季度的銷售額為 1 億美元，第二季度的銷售額為 2500 萬美元。所以我們還有一點可以繼續結轉。

But when you talk about new inflation, I'll break this up into logistics costs are seeing in lower costs, partly driven by we are also reducing the amount of premium freight that we used during the pandemic because raw materials are flowing better. You are still seeing inflationary items in downstream. So upstream materials have started to show signs of moderation of inflation. But from a downstream perspective, labor cost is still pretty sticky in inflation.

但是，當你談論新的通貨膨脹時，我會將其分解為物流成本，成本降低，部分原因是我們還減少了大流行期間使用的優質貨運量，因為原材料流動得更好。您仍然會看到下游的通脹項目。因此上游原材料已經開始出現通脹放緩的跡象。但從下游角度來看，勞動力成本對通脹的粘性仍然很大。

So what I would say is we'll have to look commodity by commodity, market by market. And as things evolve in the third and fourth quarter, you should start seeing some of the cost on a year-over-year basis get better.

所以我想說的是，我們必須逐個商品、逐個市場地審視。隨著第三季度和第四季度情況的發展，您應該開始看到一些成本同比有所改善。

If you recall last year, it was, I would say, October, November was when you started hitting peak of inflation, and then you saw markets starting to moderate. It will also, of course, depend on ultimately what happens with monetary policy. It will also impact -- depends on demand that you're going to get from China and the rest of the end markets that we play in.

如果你還記得去年，我想說的是，十月、十一月，通脹開始達到峰值，然後你看到市場開始放緩。當然，這也將最終取決於貨幣政策的變化。它還將產生影響——取決於您將從中國和我們參與的其他終端市場獲得的需求。

So all put together, our current view is that things have gotten better, especially logistics. Material is flowing better, which is definitely helping us run our factories better. We are seeing cost out, and the teams are doing a nice job of driving it. But it will take a little bit of time for it to show up, depending on our year-over-year comp and how much of that material will be actually consumed based on the volume we produce. Long answer to your question, but it's multiple materials. So it's not one that we buy, unfortunately.

總而言之，我們目前的觀點是事情已經變得更好，尤其是物流。物料流動得更好，這無疑有助於我們更好地運營工廠。我們看到成本已經下降，而且團隊在推動成本方面做得很好。但它需要一點時間才能顯現出來，具體取決於我們的同比比較以及根據我們生產的數量實際消耗的材料量。你的問題的答案很長，但涉及多種材料。所以不幸的是，這不是我們購買的。

Yes, that's super helpful. I guess my follow-on question, I know we talked a little bit about the weakness in electronics, but I want to go back to it for a second. Is there a way to maybe just kind of parse out exactly what you're seeing in that end market? And then specifically, I know that Apple is considering rolling out like an all-OLED iPad next year. And I know when we went through that transition a few years ago on smartphones, that was a hot topic for your company. Any thoughts just around that specifically and how that impacts your business?

是的，這非常有幫助。我想我的後續問題是，我知道我們談論了一些電子產品的弱點，但我想再回到這個話題。有沒有一種方法可以準確地解析出您在終端市場中看到的情況？具體來說，我知道蘋果正在考慮明年推出全 OLED iPad。我知道幾年前我們在智能手機上經歷這種轉變時，這對你們公司來說是一個熱門話題。有什麼具體的想法以及這對您的業務有何影響嗎？

Yes, Joe, I'll go back to my earlier comments. The decline that we've seen in the first half has really been driven by reduced demand in smartphones, tablets, TVs, those different categories. There is an ongoing shift in the display technology from LCD to OLED. And that's something we had talked about. As you noted, we talked about it a number of years ago, anticipating it. We continue to innovate on the OLED platforms, but we do see some impact from that shift as we see the continued movement away from LCD to OLED in a few of those categories. So there's some impact from that. The bigger impact, again, is the demand in the end markets, smartphones, TVs, tablets and laptops, a few in those categories.

是的，喬，我會回到我之前的評論。我們在上半年看到的下降實際上是由智能手機、平板電腦、電視等不同類別的需求減少造成的。顯示技術正在從 LCD 向 OLED 轉變。這就是我們討論過的事情。正如您所指出的，我們幾年前就討論過這個問題，並對此充滿期待。我們繼續在 OLED 平台上進行創新，但我們確實看到了這種轉變帶來的一些影響，因為我們看到其中一些類別繼續從 LCD 轉向 OLED。所以這是有一些影響的。更大的影響再次來自終端市場的需求，包括智能手機、電視、平板電腦和筆記本電腦，以及這些類別中的一些。

Our next question comes from the line of Chris Snyder with UBS.

我們的下一個問題來自瑞銀集團的克里斯·斯奈德。

I wanted to ask on the restructuring program. So for Q3, if you just annualize the expected savings, it's about $500 million to $600 million, which isn't far off the full $700 million to $900 million range, which sounds like we shouldn't expect in 2025. So there's another $400 million to $500 million of spend coming post-Q4 '23. Is there any reason that the savings are maybe tracking a little bit ahead? Is there anything that's front-weighted that we should be aware about here?

我想問一下重組方案。因此，對於第三季度，如果將預期節省按年計算，大約為 5 億至 6 億美元，與 7 億至 9 億美元的範圍相差不遠，這聽起來我們不應該期望在 2025 年實現。因此，23 年第四季度之後還會有 4 億至 5 億美元的支出。是否有任何理由表明節省可能會提前一些？有什麼我們應該注意的前置重點嗎？

Yes, Chris, a great question. So your math is right. I would also look at fourth quarter, where we have said $185 million to $235 million. You take that midpoint and you annualize that, you'll get to -- closer to the overall annual range. But when you look at the way our charges are, some of it is rooftops, some of this is noncash charges, and some of it is restructuring people. All that put together in the first half, we have done $262 million.

是的，克里斯，這是一個很好的問題。所以你的數學是正確的。我還會關注第四季度，我們所說的收入為 1.85 億至 2.35 億美元。你取這個中點，然後將其年化，你就會接近總體年度範圍。但當你看看我們的收費方式時，你會發現有些是屋頂費用，有些是非現金費用，有些是人員重組費用。上半年所有這些加起來，我們已經完成了 2.62 億美元。

What is left to go, which is, I think, your question in '24 and beyond, what happens with the cost, there are a couple of things. Geography by geography, we go through negotiations, make sure we are following all the regulations in there. So there will be a cost for that. And then we've got some other rooftops, et cetera, that take a little longer for us to exit that also happen in 2024 and beyond. So that's why you're seeing this the way it is right now.

剩下的事情，我認為，你在 24 年及以後的問題，成本會發生什麼，有幾件事。我們根據不同的地理位置進行談判，確保我們遵守那裡的所有規定。因此，這將是有代價的。然後我們還有其他一些屋頂等等，我們需要更長的時間才能退出，這也會在 2024 年及以後發生。這就是為什麼你現在會看到這樣的情況。

Okay. Yes. I appreciate that. And then it certainly feels like the savings here are coming in a bit quicker maybe than previously thought. I did not think there's anything in the guide for Q2 restructuring savings, which obviously came through. Does that change the way you think about the plan over the next couple of years into 2025, just seeing the savings come through faster than you thought?

好的。是的。我很感激。然後，肯定感覺這裡的節省來得比以前想像的要快一些。我認為第二季度重組節省指南中沒有任何內容，這顯然是通過的。這是否會改變您對未來幾年到 2025 年計劃的看法，只是看到節省的速度比您想像的要快？

Yes, I would say, listen, on Q2, the teams knew that we had to execute well and early, and they've done a nice job. Some of the benefit came from head count. But a lot of the other benefits that we've got, as Mike mentioned about streamlining the corporate, we were able to go after a lot of indirect costs in those areas, including exiting some of the rooftops that we wanted to that we were planning to early.

是的，我想說，聽著，在第二季度，團隊知道我們必須儘早執行好，他們做得很好。部分好處來自人員數量。但我們獲得的許多其他好處，正如邁克提到的關於精簡公司的那樣，我們能夠在這些領域減少大量間接成本，包括退出我們早先計劃的一些屋頂。

So again, it goes back to a lot of focus on cost control, making sure that where we are spending our money on an indirect perspective also is well focused on. And that's where we were able to get Q2 to be off to a better start than we expected.

所以，這又回到了對成本控制的高度關注，確保我們在間接角度上花錢的地方也得到了很好的關注。這就是我們能夠讓第二季度取得比我們預期更好的開局的地方。

So I give the team a lot of credit. They're going through very granular level of detail, making sure that we are doing the right amount of spend and focusing in the right place as we get the best return. So my credit to the team.

所以我給予團隊很大的信任。他們會進行非常細緻的細節處理，確保我們投入適量的資金，並將重點放在正確的地方，從而獲得最佳回報。所以我對團隊的信任。

Our next question comes from the line of Nicole DeBlase with Deutsche Bank.

我們的下一個問題來自德意志銀行的 Nicole DeBlase。

Maybe just starting with biopharma. So this is an area where we've seen weakness post-COVID for some time now. Have there been any green shoots there? I don't know if you think about like orders or what customers are saying about spend to the second half?

也許只是從生物製藥開始。因此，這是我們在新冠疫情之後一段時間以來看到的疲軟領域。那裡已經出現綠芽了嗎？不知道大家有沒有想過類似的訂單或者客戶對下半年的消費有什麼看法？

Nicole, I -- well, I highlight biopharma as being one of the impacts on solid growth in health care is really a reflection of the post-COVID dynamic. So we saw strong demand in biopharma for vaccines and therapeutics, and we ramped up to serve that, and the industry did broadly. And what you're seeing is kind of the other side of that demand and also the inventory, working off the inventory that was built up and trying to respond to that demand. So we're seeing both aspects of that.

妮可，我——嗯，我強調生物製藥是對醫療保健穩健增長的影響之一，這實際上反映了後新冠疫情的動態。因此，我們看到生物製藥對疫苗和治療藥物的強勁需求，我們加大力度滿足這一需求，整個行業也普遍這樣做。您所看到的是需求的另一面以及庫存，正在清理已建立的庫存並嘗試響應該需求。所以我們看到了這兩個方面。

The space, the opportunity that we see for innovation and for us, growing the business, we see this as a long-term growth driver. We have new solutions that -- and one of the reasons we had value as we came through the opportunity in vaccines and therapeutics is we could combine steps in processing, multiple steps into one. And so that demand is going to be there. As we look forward, the recombinant protein therapeutics are an opportunity going forward or just near term working through that post-COVID dynamic, both in end-market demand and inventory in the broader channel.

我們看到創新的空間和機會，以及我們發展業務的機會，我們將其視為長期增長動力。我們有新的解決方案，當我們抓住疫苗和治療學的機會時，我們有價值的原因之一是我們可以將處理步驟，多個步驟合二為一。所以這種需求將會存在。正如我們所期待的那樣，重組蛋白療法無論是在終端市場需求還是在更廣泛渠道的庫存方面，都是未來或短期內應對新冠疫情后動態的一個機會。

Nicole, I'll add one more is we are very confident and bullish about this business. In fact, we have added capacity to continue to have more production output out there as the demand comes back.

妮可，我還要補充一點，我們對這項業務非常有信心和看好。事實上，隨著需求的回升，我們已經增加了產能，以便繼續提高產量。

Got it. And just to clarify, in your second half outlook, like what's baked into the Health Care business? Have you embedded any improvement in biopharma? Or is the expectation that that's more of a 2024 dynamic?

知道了。只是為了澄清一下，在您的下半年展望中，比如醫療保健業務中有哪些內容？您是否在生物製藥領域進行了任何改進？還是人們期望這更多是 2024 年的動態？

So as I've mentioned, there is slight improvement that you're going to see in -- overall in Health Care. One is elective procedures should go up. Biopharma demand should start settling down. Hospital budgets are hopefully starting to bottom, but we don't know that. So we'll have to see what happens with elective procedures. But overall, I would say there is improvement from a first half to second half in the market in general in Health Care that we have embedded into our guide.

正如我所提到的，總體而言，醫療保健方面您將看到輕微的改善。一是擇期程序要上去。生物製藥需求應該開始穩定下來。醫院預算有望開始觸底，但我們不知道這一點。所以我們必須看看選擇性手術會發生什麼。但總的來說，我想說，從上半年到下半年，醫療保健市場總體有所改善，我們已將其納入我們的指南中。

On the other hand, the thing we are watching also is oral care, Nicole, or orthodontics. Because as you know, if the economy slows down, that's an area that people will control their spending on. And so that's the other thing we're watching and, of course, China and seeing how the recovery in China plays itself out.

另一方面，我們關注的也是口腔護理，妮可，或者正畸。因為如你所知，如果經濟放緩，人們就會控制支出。這就是我們正在關注的另一件事，當然還有中國，以及中國的複蘇如何發揮作用。

But as I mentioned in my prepared remarks, Mike has said it multiple times too, this is a great business. In the long term, this will continue to have very good growth. We are working through some comps from last year, which was COVID as well as capital budgets and hospitals. But all those trends in the long term will turn themselves around.

但正如我在準備好的發言中提到的，邁克也多次說過，這是一項偉大的事業。從長遠來看，這將繼續有非常好的增長。我們正在研究去年的一些比較，包括新冠病毒以及資本預算和醫院。但從長遠來看，所有這些趨勢都會自行扭轉。

Our next question comes from the line of Steve Tusa with JPMorgan.

我們的下一個問題來自史蒂夫·圖薩（Steve Tusa）與摩根大通的對話。

Just -- can we just calibrate? Because there's a lot of moving parts around the adjusted sales numbers. I think your guidance implies roughly like $7.9 billion in sales, like a modest sequential step-down from the third quarter just on an absolute basis. Is that right?

只是——我們可以校準一下嗎？因為調整後的銷售數字有很多變化。我認為你的指導意味著大約 79 億美元的銷售額，就像第三季度在絕對基礎上的適度連續下降一樣。是對的嗎？

It's $8 billion.

這是80億美元。

For Q3.

對於第三季度。

For Q3. Is that your question? I'm sorry.

對於第三季度。這是你的問題嗎？對不起。

No, Q4, Q4, Q4.

不，Q4，Q4，Q4。

Yes.

是的。

What's implied?

隱含著什麼？

Yes, it would be around that range, between -- it's somewhere in that range. You're right.

是的，它會在這個範圍附近，在這個範圍內的某個地方。你說得對。

Yes. Okay. And can you just give us an idea of the range of the absolute margin? I mean we could probably do a lot of backing into it, but what you now expect for the year from just a range on an absolute margin basis?

是的。好的。您能否告訴我們絕對邊際的範圍？我的意思是，我們可能會對此做很多支持，但您現在對今年的絕對利潤率範圍有何期望？

Between 19.5% to 20%, Steve, versus the 19% that we had told you coming into the year.

史蒂夫，這個數字在 19.5% 到 20% 之間，而我們今年告訴你的數字是 19%。

That's great. And then just one last one on these liabilities. So what was the change in the mindset from really drawing a bit of a hard line and talking about how the science made you guys look at this stuff and then taking what is still a pretty sizable $10 billion to $12 billion charge? Like what -- like that's a pretty significant change in mindset.

那太棒了。然後是關於這些負債的最後一項。那麼，從真正劃定一條強硬路線並談論科學如何讓你們看待這些東西，然後收取仍然相當大的 100 億至 120 億美元費用，心態發生了什麼變化？就像什麼——就像這是心態上的一個相當重大的改變。

Yes, Steve...

是的，史蒂夫……

What drove that internally?

是什麼在內部推動了這一點？

Yes. I think over the last several years, we've been talking about taking a proactive approach to managing our litigation, and that includes the whole PFAS docket. And it's been part of our strategy, and we talk about it kind of in short form that we're going to proactively manage it, defend ourselves in court and work to resolve through mediation as appropriate. And that's been really the guiding strategy and how we've looked at it. So as things evolve, we are making decisions around that frame.

是的。我認為在過去幾年中，我們一直在討論採取積極主動的方法來管理我們的訴訟，其中包括整個 PFAS 案卷。這是我們戰略的一部分，我們以簡短的形式談論它，我們將積極管理它，在法庭上為自己辯護，並努力通過適當的調解來解決問題。這確實是指導策略以及我們的看法。因此，隨著事情的發展，我們正在圍繞這個框架做出決策。

Does it matter where the stock price is and what that's reflecting when it comes to your -- how you think about this stuff?

當涉及到你如何看待這個問題時，股價在哪里以及它反映了什麼，這重要嗎？

The addressing litigation, our strategy there is independent of what the share price is doing. I mean, certainly, there's an overhang in the stock price and the uncertainty around that. And we are focused on doing what we can to address litigation, help address that uncertainty. That's something we've been discussing with investors over multiple years.

在解決訴訟方面，我們的策略與股價的走勢無關。我的意思是，當然，股價存在懸而未決的問題以及與之相關的不確定性。我們專注於盡我們所能來解決訴訟，幫助解決這種不確定性。這是我們多年來一直與投資者討論的問題。

And so that certainly plays into it from that standpoint. We don't like the overhang on the stock and we want to manage it. But we've got to -- as we move forward, we've got to do what's in the best interest of the company for the long term. And so that gets back to we're going to defend ourselves in court and we're going to work to resolve as appropriate.

因此，從這個角度來看，這肯定會發揮作用。我們不喜歡庫存過剩，我們希望對其進行管理。但我們必須——隨著我們的前進，我們必須做最符合公司長期利益的事情。因此，我們將在法庭上為自己辯護，並且我們將努力酌情解決。

Our next question is from the line of Laurence Alexander with Jefferies.

我們的下一個問題來自勞倫斯·亞歷山大 (Laurence Alexander) 和杰弗里斯 (Jefferies)。

This is Dan Rizzo on for Laurence. Just a quick question on inventories that you've managed so well. How should we think about inventory turnover in the long run, I mean, over the next few years? What is kind of the go-forward thought process?

我是勞倫斯的丹·里佐。我想問一個關於你們管理得很好的庫存的簡單問題。從長遠來看，我的意思是，未來幾年，我們應該如何考慮庫存周轉率？前進的思維過程是什麼樣的？

Yes. You -- as I've said before, as supply chains start to heal, one of our big opportunities or opportunities to continue driving cash flow as inventories. The teams have done a really nice job of starting to use data and data analytics. We are getting better at doing demand planning.

是的。正如我之前所說，隨著供應鏈開始癒合，這是我們繼續推動現金流作為庫存的重大機會之一。這些團隊在開始使用數據和數據分析方面做得非常出色。我們在需求規劃方面做得越來越好。

So I would say in the long term, you should see trends continue to improve from an inventory turns perspective. Because as supply chains heal, as we get better on demand planning, that's where you're going to see it. So you will see it get better in the long run.

所以我想說，從長遠來看，從庫存周轉的角度來看，您應該看到趨勢繼續改善。因為隨著供應鏈的癒合，隨著我們更好地進行需求規劃，你就會看到它。所以從長遠來看，你會看到它變得更好。

That does conclude the question-and-answer portion for our conference call. I will now turn the call back over to Mike Roman for some closing remarks.

我們電話會議的問答部分就到此結束了。現在我將把電話轉回給邁克·羅曼（Mike Roman），讓他發表一些結束語。

To wrap up, we continue to execute in a dynamic environment. While we see progress and positive momentum, we have more work to do. And we'll continue to advance our restructuring actions, control costs, strengthen our supply chain. At the same time, we will drive our strategic priorities, improving operational execution, successfully spinning off our Health Care business and addressing litigation.

總而言之，我們繼續在動態環境中執行。雖然我們看到了進展和積極勢頭，但我們還有更多工作要做。我們將繼續推進重組行動，控製成本，加強我們的供應鏈。與此同時，我們將推動我們的戰略重點，提高運營執行力，成功剝離我們的醫療保健業務並解決訴訟。

I thank 3Mers for their contributions and commitment, especially as we continue to lead through significant change. We will stay focused on driving growth, improving operational performance and delivering value to customers and shareholders. Thank you for joining us.

我感謝 3Mers 的貢獻和承諾，特別是在我們繼續引領重大變革的情況下。我們將繼續專注於推動增長、提高運營績效以及為客戶和股東創造價值。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，並請您斷開線路。