Modine Manufacturing Company (MOD) 2017 Q1 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Modine Manufacturing Company's first-quarter fiscal 2017 conference call. (Operator Instructions). As a reminder, this conference call is being recorded.

各位女士、先生，早安，歡迎參加 Modine Manufacturing Company 2017 會計年度第一季財報電話會議。（接線員指示）。提醒各位，本次電話會議將進行錄音。

I would now like to turn the conference over to your host, Ms. Kathy Powers, Vice President, Treasurer, and Investor Relations.

現在我想把電話會議交給今天的主持人——Kathy Powers 女士，副總裁、財務長兼投資人關係主管。

Thank you for joining us today for Modine's first-quarter fiscal 2017 earnings call. With me today are Modine's President and CEO, Tom Burke, and Mick Lucareli, our Vice President, Finance, and Chief Financial Officer.

感謝各位今天參加 Modine 2017 會計年度第一季財報電話會議。今天與我一同出席的有 Modine 總裁暨執行長 Tom Burke，以及我們的財務副總裁兼財務長 Mick Lucareli。

We will be using slides with today's presentation. Those links are available through both the webcast link, as well as the PDF file posted on the investor relations section of our Company website, modine.com. Also, should you need to exit the call prior to its conclusion, a replay will be available through our website beginning approximately two hours after the call concludes.

我們將使用投影片進行今天的簡報。相關連結可透過網路直播連結取得，也可在公司網站 modine.com 的投資人關係專區下載已上傳的 PDF 檔。此外，若您需要在會議結束前提前離線，會議結束約兩小時後，您可透過我們的網站收聽重播。

On slide 2 is an outline for today's call. Tom and Mick will provide comments on our first-quarter results; an update on our Strengthen, Diversify and Grow strategic initiatives; and provide our revenue and earnings guidance for fiscal 2017. At the end of the call, there will be a question-and-answer session.

投影片第 2 頁為今天電話會議的大綱。Tom 與 Mick 將就第一季業績發表評論；更新我們「強化、分散與成長」策略計畫（Strengthen, Diversify and Grow）；並提供 2017 會計年度的營收與獲利指引。會議最後將進行問答。

On slide 3 is our notice regarding forward-looking statements. I want to remind you that this call may contain forward-looking statements as outlined in our earnings release, as well as in our Company's filings with the Securities and Exchange Commission.

投影片第 3 頁為關於前瞻性陳述的聲明提醒。我想提醒各位，本次電話會議可能包含前瞻性陳述，相關內容已於我們的財報新聞稿以及公司向美國證券交易委員會（SEC）提交的文件中說明。

With that, it is my pleasure to turn the call over to Tom Burke.

接下來，我很高興把電話會議交給 Tom Burke。

Thank you, Kathy, and good morning, everyone.

謝謝你，Kathy，各位早安。

On today's call, I will discuss our first-quarter results and provide an update on our Strengthen, Diversify and Grow strategic transformation, which we call SDG for short. After that, Mick will provide a more detailed review of our consolidated financial results and walk you through our revenue and earnings guidance for fiscal 2017. I will then provide closing remarks prior to opening it up for questions.

在今天的電話會議中，我將討論第一季業績，並更新我們的「強化、分散與成長」策略轉型，我們簡稱為 SDG。之後 Mick 會更詳細回顧合併財務結果，並帶各位了解 2017 會計年度的營收與獲利指引。接著在開放提問前，我會做結語。

Despite a fairly challenging global economic environment, sales in the first quarter were up 1% on a constant-currency basis. Higher sales in our Europe and Asia segments were partially offset by lower sales in the Americas segment, which were negatively impacted by continued weakness in key end markets in the US and Brazil.

儘管全球經濟環境相當具挑戰性，第一季以固定匯率計算的銷售額仍成長 1%。歐洲與亞洲事業部銷售成長，部分抵銷了美洲事業部銷售下滑；美洲事業部受到美國與巴西主要終端市場持續疲弱的負面影響。

Enhanced by the decisions under our SDG initiative, we saw gross margin improve by 130 basis points to 17.8%, benefiting from improved plant operating performance, savings related to procurement initiatives, and favorable material costs. Similarly, our adjusted operating income was up $17.4 million, up 23% from the prior year. Adjusted earnings per share were $0.21 for the quarter, up $0.07 or 50% from the prior year.

在 SDG 計畫相關決策的助益下，我們的毛利率提升 130 個基點至 17.8%，受惠於工廠營運績效改善、採購計畫帶來的節省，以及原物料成本有利。同樣地，我們的調整後營業利益增加 1,740 萬美元，較去年同期成長 23%。本季調整後每股盈餘為 0.21 美元，較去年同期增加 0.07 美元或 50%。

Although our topline continues to be challenged by weakness in certain of our end markets, I am pleased that our proactive initiatives are putting us in a place to succeed and that we have once again delivered year-over-year earnings improvements. We are clearly seeing the benefits of the cost reductions realized from our Strengthen initiatives, while also spending significant resources on various growth opportunities that will help us achieve our goals of our Diversify and Grow initiatives.

雖然部分終端市場疲弱使我們的營收仍面臨挑戰，但我很高興我們的積極措施正讓我們處於能夠成功的位置，且我們再次交出年對年獲利改善的成果。我們清楚看到「強化」措施所實現的成本降低效益，同時也投入大量資源於各項成長機會，協助我們達成「分散與成長」措施的目標。

Now I would like to briefly review the segment results. Turning to page 6, sales for the Americas segment decreased 11% year over year on a constant-currency basis, primarily due to continued weakness in the commercial vehicle and off-highway markets, partially offset by higher sales to automotive customers.

接下來我想簡要回顧各事業部表現。請看第 6 頁，美洲事業部以固定匯率計算的銷售額年減 11%，主要因商用車與非公路（off-highway）市場持續疲弱，部分被對汽車客戶的銷售成長所抵銷。

All of our major OE customers in the heavy-duty truck and off-highway markets are feeling the impact of the extremely slow markets. Heavy-duty truck inventory levels remain relatively high in North America and our off-highway customers continue to signal minimal optimism for future volume increases.

我們在重型卡車與非公路市場的主要原廠（OE）客戶都感受到市場極度低迷的影響。北美重型卡車庫存水位仍相對偏高，而我們的非公路客戶也持續釋出訊號，對未來出貨量增加幾乎不抱持樂觀。

Gross margin improved by 110 basis points from the prior year, up to 17.9%, despite the drop in sales for the quarter. Our gross margin benefited from lower material costs and savings from our ongoing procurement initiatives. Despite this margin improvement, gross profit was down $1.6 million year over year, due to the lower sales volume.

儘管本季銷售下滑，毛利率仍較去年同期提升 110 個基點至 17.9%。毛利率受惠於原物料成本下降以及持續推動的採購計畫節省。然而，因銷售量較低，毛利年減 160 萬美元。

SG&A was down $1.1 million, or 7%, primarily due to continued cost-control efforts. The team in the Americas segment has been working hard to lower costs in light of the challenging market conditions. We have significantly lowered our operating expenses in Brazil over the past 18 months and have reduced headcount in North America as well.

SG&A（銷售、一般及管理費用）減少 110 萬美元或 7%，主要來自持續的成本控管努力。面對具挑戰性的市場狀況，美洲事業部團隊一直努力降低成本。過去 18 個月我們已大幅降低巴西的營運費用，也在北美縮減人力。

Adjusted operating income for the Americas segment was down 4% to $11.5 million, due to lower gross profit resulting from the lower sales volume in the quarter. As expected, we are planning for difficult end market conditions to continue to impact our year-over-year sales comparisons in fiscal 2017.

美洲事業部調整後營業利益下降 4% 至 1,150 萬美元，原因是本季銷售量較低導致毛利下降。如同預期，我們規劃 2017 會計年度艱困的終端市場狀況仍將持續影響年對年銷售比較。

In North America, the heavy-duty commercial vehicle market has continued to decline from its peak volume last year. We continue to expect the overall market to be down about 25%. Also, the heavy-duty portion of the off-highway market is still declining year over year, with key customers continuing to reduce their orders.

在北美，重型商用車市場已從去年高峰出貨量持續下滑。我們仍預期整體市場將下滑約 25%。此外，非公路市場中的重型部分仍呈年對年下滑，主要客戶持續減少訂單。

In Brazil, the recession continues and we see no sign of near-term improvement. Although these market conditions are challenging, we remain diligent in our commercial efforts and believe that we are well positioned competitively to take advantage when these markets rebound, which we expect they will.

在巴西，景氣衰退仍在持續，我們看不到短期改善的跡象。儘管市場狀況具挑戰性，我們仍持續投入商務拓展並保持嚴謹執行，且相信當市場反彈時——我們預期它們會反彈——我們在競爭上具備良好位置可把握機會。

Please turn to page 7. Sales for our Europe segment continued to be strong and increased 9% in the first quarter on a constant-currency basis as a result of higher sales to automotive and commercial vehicle customers. Gross margins improved by 570 basis points from the prior year to 17.2%, driven by the higher sales volume, favorable materials cost, and improved operating performance.

請翻到第 7 頁。我們歐洲事業部銷售持續強勁，第一季以固定匯率計算成長 9%，主要來自對汽車與商用車客戶的銷售增加。毛利率較去年同期提升 570 個基點至 17.2%，受更高的銷售量、有利的原物料成本以及營運績效改善所帶動。

Adjusted operating income was up $9.1 million to $14.7 million, due primarily to the higher gross profit on sales.

調整後營業利益增加 910 萬美元至 1,470 萬美元，主要因銷售帶來的毛利增加。

I am very pleased with the operating performance of the European region. This significant earnings improvement resulted from not only converting on the higher sales volume, but also from achieving savings targets and stabilizing production at facilities that had capacity-related production issues last year. A great deal of work has been done to improve the margins in Europe and we are clearly seeing the results.

我對歐洲地區的營運表現非常滿意。這項顯著的獲利改善，不僅來自於更高銷售量的轉化，也來自於達成節省目標，以及讓去年曾因產能相關問題而受影響的廠區生產趨於穩定。我們已投入大量工作改善歐洲的利潤率，且成果已清楚展現。

As you know, our European business has undergone significant transformation over the last few years. None of this has been easy, but it created momentum, helping lead us to our profitability targets.

如各位所知，我們的歐洲業務在過去幾年經歷重大轉型。這些都不容易，但它創造了動能，協助我們朝獲利目標邁進。

We still have work in front of us. As I previously mentioned, we are expanding capacity in Hungary and are actively quoting from our two cost-competitive Hungarian locations. This is the next step for Modine towards providing a truly global design for truck radiators, something we were unable to achieve with the Origami design. We have had technical and commercial success with our next-generation radiator design in other regions around the globe and are pleased to be able to offer it to our European customers going forward.

我們仍有許多工作要做。如我先前提到的，我們正在匈牙利擴充產能，並積極以我們在匈牙利兩個具成本競爭力的據點進行報價。這是 Modine 邁向提供真正全球化卡車散熱器設計的下一步——這是我們過去以 Origami 設計無法達成的。我們的次世代散熱器設計在全球其他地區已取得技術與商業上的成功，我們也很高興未來能將其提供給歐洲客戶。

This is important as some of our existing commercial vehicle programs start winding down later this year, putting short-term pressure on our topline in the region. As a result, we expect the gross margin percentage to be lower than this quarter, but to continue to show improvement over the prior year.

這點很重要，因為我們部分既有的商用車專案將在今年稍晚開始逐步結束，對該地區短期營收造成壓力。因此，我們預期毛利率百分比將低於本季，但仍將持續較去年同期改善。

Please turn to page 8. Sales for our Asia segment were up 35% compared to the prior year on a constant-currency basis. This improvement was primarily related to higher sales to automotive and off-highway customers in China and incremental sales related to our recently formed joint venture, Modine Puxin.

請翻到第 8 頁。我們亞洲事業部以固定匯率計算的銷售額較去年同期成長 35%。此改善主要來自中國汽車與非公路客戶的銷售增加，以及我們近期成立的合資公司 Modine Puxin 所帶來的新增銷售。

As you may recall, Puxin primarily produces stainless steel heat exchangers for the light-, medium-, and heavy-duty commercial vehicle market in China. The joint venture is off to a strong start, demonstrating its competitive position in local markets. We expect a continued contribution to the growth of this segment as we expand our product offering in China to support higher emissions standards. This is also allowing us to diversify our customer base with domestic OEs across all vehicular markets.

各位或許記得，Puxin 主要為中國輕型、中型與重型商用車市場生產不鏽鋼熱交換器。該合資公司開局強勁，展現其在當地市場的競爭地位。隨著我們在中國擴充產品組合以支援更高的排放標準，我們預期其將持續為本事業部的成長做出貢獻。這也使我們得以在各車輛市場中，透過國內原廠（OE）客戶分散客戶基礎。

Operating income for Asia segment increased $1.1 million to $1.5 million in the first quarter, primarily due to higher sales volumes and lower SG&A expenses.

亞洲事業部第一季營業利益增加 110 萬美元至 150 萬美元，主要因銷售量提高以及 SG&A 費用降低。

Turning to page 9, sales for our Building HVAC segment were flat on a constant-currency basis as lower product sales to the school market in North America were offset by increased sales in the UK. Gross margin for the segment decreased 260 basis points to 25.1%, primarily related to the UK business.

翻到第 9 頁，在固定匯率基礎下，我們建築 HVAC 事業部的銷售持平，北美學校市場產品銷售下滑被英國銷售成長所抵銷。該事業部毛利率下降 260 個基點至 25.1%，主要與英國業務相關。

In the UK, gross margin was down due to operating inefficiencies, competitive pricing pressures caused by the strong pound versus the euro, and higher depreciation expense related to the replacement assets associated with the Airedale fire. We have made progress in addressing the operating inefficiencies and expect our gross margin to improve in the remaining quarters of the year, due to an improved cost base, normalized pound to euro currency rates, and regaining our capacity in the new facility.

在英國，毛利率下滑係因營運效率不佳、英鎊相對歐元走強所導致的競爭性定價壓力，以及與 Airedale 火災相關之替換資產所帶來較高的折舊費用。我們在改善營運效率不佳方面已取得進展，並預期在本年度剩餘季度，受惠於成本基礎改善、英鎊兌歐元匯率回歸常態，以及在新廠房恢復產能，毛利率將有所提升。

Adjusted operating income was down $0.8 million to $1.3 million, primarily due to lower gross profits, partially offset by decreases in SG&A expenses.

調整後營業利益下降 80 萬美元至 130 萬美元，主要因毛利降低，部分被銷售、一般及管理（SG&A）費用下降所抵銷。

As a result of the weaker-than-expected market conditions and the uncertainties surrounding the Brexit vote, we are lowering our outlook for Building HVAC markets for the remainder of the year. Specifically in the UK, the Brexit vote has caused uncertainty in the markets and capital investment has slowed. However, the British pound has weakened against the euro since the Brexit vote, which has eased competitive and pricing pressures in the short term within the UK market.

由於市場狀況弱於預期，以及英國脫歐公投相關不確定性，我們下調本年度剩餘期間建築 HVAC 市場展望。特別是在英國，脫歐公投造成市場不確定性，資本投資已放緩。然而，自脫歐公投以來英鎊兌歐元走弱，短期內已緩解英國市場的競爭與定價壓力。

In response to the market uncertainty, we implemented a program of workforce reduction in the UK that included early retirements, voluntary redundancy, and compulsory redundancy actions. We expect to see savings from these actions beginning next quarter.

為因應市場不確定性，我們在英國推動人力縮減方案，包括提前退休、自願離職，以及強制裁員措施。我們預期自下季起將開始看到這些措施帶來的節省效益。

Please turn to page 10. Before turning it over to Mick, I would like to give an update on our Strengthen, Diversify and Grow financial objectives. As a reminder, we have two core goals related to this strategic framework.

請翻到第 10 頁。在交給 Mick 之前，我想更新我們「強化、多元化與成長」（Strengthen, Diversify and Grow）的財務目標。提醒一下，這個策略架構下我們有兩項核心目標。

Our first objective is to achieve gross cost reductions of $40 million to $50 million, designed to help us move toward a higher operating margin of 7% to 8%. The cost reduction is a cumulative target and will more than offset general economic inflation and contractual price downs to our customers.

第一項目標是達成 4,000 萬至 5,000 萬美元的總成本削減，旨在協助我們朝 7% 至 8% 的較高營業利益率邁進。成本削減為累積目標，且將足以抵銷一般經濟通膨以及對客戶的合約降價。

Second, we are looking to acquire at least $100 million of incremental non-vehicular revenue and expand our leverage ratio between 1.5 and 2.5 times. We are specifically targeting transactions that are immediately accretive to our shareholders and that will generate sufficient cash and synergies to allow us to quickly pay down debt so that our leverage remains in our targeted range.

第二，我們希望透過併購取得至少 1 億美元的新增非車用營收，並將槓桿比率擴大至 1.5 倍至 2.5 倍之間。我們特別鎖定能立即增厚股東價值的交易，且可產生足夠現金與綜效，使我們能快速償還債務，讓槓桿維持在目標區間內。

As it relates to our first goal, we are making significant progress. To date, we have identified or implemented actions that will lead to $36 million total gross savings on an annual run rate basis. To achieve these savings, we have focused on SG&A reductions, manufacturing footprint savings, and our global procurement initiative.

就第一項目標而言，我們正取得顯著進展。截至目前，我們已辨識或已執行可在年度化運行率（annual run rate）基礎上帶來合計 3,600 萬美元總節省的措施。為達成這些節省，我們聚焦於 SG&A 縮減、製造據點（footprint）節省，以及全球採購計畫。

We have implemented a variety of programs aimed at headcount reduction, including the early retirement program in North America that I mentioned last quarter and the workforce reduction program in the UK. We are making progress towards our global product-based organizational structure and are focusing on additional ways to reduce SG&A spending without compromising our business.

我們已推行多項以人力精簡為目標的方案，包括我在上季提到的北美提前退休計畫，以及英國的人力縮減方案。我們正朝全球以產品為基礎的組織架構邁進，並專注於在不影響業務的前提下，尋找更多降低 SG&A 支出的方式。

In terms of our manufacturing footprint goals, the Washington, Iowa, transfer and associated closure continues to run ahead of schedule and will be completed by the end of this calendar year. Our savings to date include the benefits of the McHenry closure last year and a projected benefit from the Washington, Iowa, closure.

在製造據點目標方面，華盛頓（愛荷華州）移轉及相關關廠作業持續超前進度，並將於本曆年年底前完成。我們迄今的節省包含去年 McHenry 關廠的效益，以及預期來自華盛頓（愛荷華州）關廠的效益。

For our procurement initiative, we continue to identify and implement meaningful savings opportunities as we work through a wide range of product value streams.

在採購計畫方面，隨著我們推進多元產品價值流（value streams）的工作，我們持續辨識並落實具實質意義的節省機會。

Now moving to the critical Diversify and Grow objectives, while I don't have anything specific to share at this time, I can assure you that we have identified growth opportunities that will help us meet these objectives. In the past, we have talked about the internal resources we have dedicated to business development activities. We have a solid pipeline of potential acquisitions and we are very encouraged about several opportunities that may be actionable. We are investing significant resources on these objectives and we're optimistic about having something more definitive to report soon.

接著談到關鍵的「多元化與成長」目標，雖然目前沒有具體內容可分享，但我可以向各位保證，我們已辨識出可協助達成這些目標的成長機會。過去我們談過投入於業務開發活動的內部資源。我們有穩健的潛在併購案源（pipeline），且對其中數個可能可付諸行動的機會感到非常振奮。我們正投入大量資源於這些目標，並樂觀預期不久後能有更明確的進展可報告。

With that, I would like to turn it over to Mick for an overview of our consolidated financial results and to review our fiscal 2017 guidance.

接下來，我想把時間交給 Mick，請他概述我們的合併財務結果，並檢視 2017 會計年度的財測指引。

Thanks, Tom, and good morning. Please turn to slide 12.

謝謝你，Tom，大家早安。請翻到第 12 張投影片。

Our first-quarter sales increased slightly, despite the fact that we continued to experience weakness in certain end markets. Sales increased 1% on a constant-currency basis, excluding a small, unfavorable currency-exchange impact of $1.6 million. Higher sales in Europe were driven by improvements in our automotive and commercial vehicle markets. Sales in our Asia segment continue to increase due to higher launch volumes of our automotive engine products. These increases were mostly offset by continued weakness in global off-highway markets and in the North American heavy-duty commercial vehicle market.

我們第一季銷售小幅成長，儘管我們在部分終端市場仍持續面臨疲弱。以固定匯率計，銷售成長 1%，並排除 160 萬美元的小幅不利匯兌影響。歐洲較高的銷售主要來自汽車與商用車市場改善。我們亞洲事業部的銷售持續成長，係因汽車引擎產品的導入（launch）量增加。這些成長大多被全球非公路（off-highway）市場以及北美重型商用車市場持續疲弱所抵銷。

I am happy to report that our gross margin improved 130 basis points to 17.8%, despite the relatively flat sales. This improvement was driven by lower commodity prices, improved plant operating performance, and savings from our procurement initiatives. As Tom outlined, we are clearly seeing the benefits of our Strengthen, Diversify and Grow initiatives in the operating results.

我很高興報告，儘管銷售相對持平，我們的毛利率仍提升 130 個基點至 17.8%。此改善由較低的原物料價格、工廠營運績效提升，以及採購計畫帶來的節省所驅動。如 Tom 所述，我們在營運結果上清楚看到「強化、多元化與成長」計畫的效益。

Moving on to SG&A, costs were higher than the prior year by $2 million, or 4%. The increase was due to two items. First, we incurred higher professional fees related to business development activities as we continue to pursue inorganic growth opportunities. In addition, we also had higher employee benefit and incentive compensation expenses compared to the prior year.

接著看 SG&A，成本較去年增加 200 萬美元，或 4%。增加主要來自兩項因素。第一，因我們持續追求非有機成長機會，在業務開發活動相關的專業服務費用較高。此外，與去年相比，我們的員工福利與獎酬費用也較高。

Also during the quarter, we recorded $2.3 million of restructuring expenses. The majority of these charges relate to employee severance, equipment transfer, and plant consolidation costs in the Americas and Building HVAC segments. The bottom portion of the table shows these adjustments. As usual, we've included a full reconciliation between our reported results and our adjusted operating results in the appendix.

此外，本季我們認列 230 萬美元的重整費用。多數費用與美洲及建築 HVAC 事業部的員工資遣、設備移轉，以及工廠整併成本相關。表格下半部顯示這些調整。如同以往，我們在附錄中提供已報告結果與調整後營運結果之間的完整調節表。

First-quarter adjusted operating income of $17.4 million was up $3.2 million, or 23%, from last year. This was the result of our improved gross margin, combined with ongoing cost control. Adjusted EPS was $0.21, up $0.07 or 50% compared to last year.

第一季調整後營業利益為 1,740 萬美元，較去年增加 320 萬美元，或 23%。這是毛利率改善加上持續成本控管的結果。調整後每股盈餘（EPS）為 0.21 美元，較去年增加 0.07 美元，或 50%。

Our improvement in EPS was driven by both improved operating earnings and lower income tax expense. As I discussed in the past , our tax rate is impacted by our mix of foreign and domestic earnings. This mix resulted in lower effective tax rate this quarter.

EPS 的改善同時來自營運獲利提升與所得稅費用降低。如我過去所提，我們的稅率會受到海外與國內獲利組合的影響。本季此組合使有效稅率較低。

Once again, we are pleased with the financial performance this quarter. The management team remains highly focused on the items that we can control. Despite relatively flat sales volume, we once again improved our operating earnings, providing direct evidence of this focus.

我們再次對本季的財務表現感到滿意。管理團隊仍高度聚焦於我們可控的事項。儘管銷售量相對持平，我們仍再次提升營運獲利，直接證明了這項聚焦。

Turning to slide 13, free cash flow in the quarter was negative $8 million. This is $5 million better than the prior year, due to cash generated from reductions in working capital and lower capital expenditures. This was expected and is consistent with previous years as we have a large number of cash flow items in our Q1.

翻到第 13 張投影片，本季自由現金流為負 800 萬美元。由於營運資金下降所帶來的現金流入，以及資本支出降低，這比去年改善 500 萬美元。這是預期之內，且與過往年度一致，因為我們在第一季有大量現金流項目。

Our balance sheet provides plenty of liquidity to support our growth and diversification initiatives. We ended the quarter with $107 million of net debt, up $13.5 million from prior year-end. We also ended the quarter with $64 million of cash and a net leverage ratio under one.

我們的資產負債表提供充足流動性，以支持成長與多元化計畫。本季末淨負債為 1.07 億美元，較前一會計年度年末增加 1,350 萬美元。本季末現金為 6,400 萬美元，淨槓桿比率低於 1 倍。

We did not repurchase any stock during the quarter. As Tom mentioned, we're working hard on growth opportunities and preserved cash to maximize flexibility, consistent with our message at the start of the share repurchase program.

本季我們未回購任何股票。如 Tom 所提，我們正努力推進成長機會，並保留現金以最大化彈性，這與我們在啟動庫藏股回購計畫之初所傳達的訊息一致。

Now let's turn to our fiscal 2017 full-year guidance on slide 14. We are confirming our fiscal 2017 full-year sales and earnings guidance. We expect sales to be down 1% to up 3% from the prior year. Throughout the Americas segment, we expect difficult market conditions to continue in the near term. This includes ongoing weakness in our global off-highway market and in the North American commercial vehicle market. We are taking a cautious approach to the business environment in Brazil, given the Olympics and continuing difficult economic condition.

現在請看第 14 張投影片，2017 會計年度全年財測指引。我們確認 2017 會計年度全年銷售與獲利指引不變。我們預期銷售較去年下降 1% 至成長 3%。在美洲事業部，我們預期短期內艱困的市場狀況將持續，包括全球非公路（off-highway）市場以及北美商用車市場持續疲弱。鑑於奧運以及持續艱困的經濟情勢，我們對巴西的商業環境採取審慎態度。

Also, certain end markets have softened in our Building HVAC business. We will have better visibility once we get closer to the heating season. And the global automotive business remains a bright spot. This is clearly benefiting both our Europe and Asia segments in particular.

此外，我們建築 HVAC 業務的部分終端市場已轉弱。待更接近供暖季節時，我們將有更佳能見度。而全球汽車業務仍是亮點，這特別明顯地帶動了我們的歐洲與亞洲事業部。

We expect adjusted operating income to be $65 million to $71 million. This equates to an increase of 3% to 12%. We will continue to drive margin and SG&A improvements through actions planned as part of our SDG initiative.

我們預期調整後營業利益將為 6,500 萬美元至 7,100 萬美元。這相當於成長 3% 至 12%。我們將持續透過作為 SDG 計畫一部分所規劃的行動，推動毛利率與 SG&A（銷售、一般及行政費用）改善。

We expect our adjusted EPS to be between $0.77 and $0.87, with our full-year tax expense to run between $16 million and $18 million. As always, this expense is contingent upon the actual country-to-country mix of earnings.

我們預期調整後 EPS 將介於 0.77 美元至 0.87 美元之間，全年所得稅費用預計介於 1,600 萬美元至 1,800 萬美元。如同以往，該費用取決於實際各國獲利的組合。

I would like to point out that, similar to the last two years, we anticipate a seasonal slowdown in Q2. We expect the sequential change in Q2 will look very similar to last year. However, that will be followed by sequential improvements in Q3 and Q4, resulting in a stronger second half.

我想指出，與過去兩年類似，我們預期第二季會出現季節性放緩。我們預期第二季的環比變化將與去年非常相近。不過，之後第三季與第四季將出現環比改善，使下半年表現更強勁。

With that, Tom, I will turn it back to you.

那麼，Tom，我把時間交還給你。

Thanks, Mick.

謝謝，Mick。

Overall, I am pleased with our earnings improvement this quarter, despite the continued market challenges in North America and Brazil. Our European business showed significant sales and earnings growth and our Asia segment continues to benefit from automotive oil cooler launches in China and new business opportunities for our new joint venture.

整體而言，儘管北美與巴西市場挑戰仍在，我對本季獲利改善感到滿意。我們的歐洲業務展現顯著的銷售與獲利成長，而亞洲事業部持續受惠於在中國推出汽車用機油冷卻器，以及我們新合資企業帶來的新業務機會。

We are focused on driving operational improvements in the UK and will continue to work towards our savings goals and the various initiatives under our Strengthen, Diversify and Grow program. On top of this, we continue to devote a considerable amount of time and energy to achieving our growth and diversification objectives.

我們專注於推動英國的營運改善，並將持續朝向節省目標以及「強化、分散與成長」（Strengthen, Diversify and Grow）計畫下的各項倡議努力。此外，我們也持續投入相當多的時間與精力，以達成成長與多元化目標。

I will close by recognizing that Modine recently celebrated an important milestone, our 100th anniversary. Relatively few companies can achieve this longevity and I'm honored that Modine is among them. It has been very rewarding for our management team to attend employee celebrations around the world, and I am very proud to be a part of an organization that has been in business for over a century. We are all committed to setting this Company up for the next century in business. We want to thank you for your continued interest in Modine.

最後我想提到，Modine 近期慶祝了一個重要里程碑——我們的 100 週年。能達到如此長久歷史的公司相對少見，我很榮幸 Modine 是其中之一。管理團隊能參與全球各地員工的慶祝活動令人非常欣慰，而我也很自豪能成為一家已營運超過一個世紀的組織的一員。我們都致力於讓公司為下一個世紀的經營奠定基礎。感謝各位持續關注 Modine。

And with that, we will take your questions.

接下來我們將開始回答各位的提問。

(Operator Instructions). Mike Shlisky, Seaport Global.

（接線員指示）。Seaport Global 的 Mike Shlisky。

Nice quarter.

這一季表現不錯。

Maybe I will start with the news of the day here, the Class 8 orders for the month of July. I want to get your thoughts, since you are the first company out there that is speaking in a public forum this morning. Pretty weak in July, as you probably heard; it has been weak for most of the year.

我想先從今天的焦點新聞談起，也就是 7 月份的 Class 8 訂單。我想聽聽你們的看法，因為你們是今天早上第一家在公開場合發言的公司。7 月很疲弱，你們應該也聽說了；而且今年大部分時間都很疲弱。

I guess, can you maybe tell us perhaps since your last call in June, I see you didn't really change your overall outlook, but since the last call in June, do you feel like your major OEM customers in North America have gotten any more cautious about their build days or their outlook here?

我想問的是，或許自從你們 6 月上次電話會議以來——我看到你們整體展望並沒有太大改變——但自 6 月上次電話會議以來，你覺得北美主要 OEM 客戶在排產天數或展望方面，有變得更保守嗎？

No, our outlook is just as I described it at this point, although we just saw that data come in this morning as well, overnight from the report. So, clearly, that was a very weak July. So we are looking cautiously at our releases and will be in close contact with our customers going forward as to see any adjustments that they may be doing as far as production changes. But as of this point, nothing to report that we have seen since our last report, Mike.

沒有，我們目前的展望就如我剛才所描述的那樣；不過我們也像你一樣，是今天早上才從報告中看到那份數據，等於是昨晚才出來。很明顯，7 月非常疲弱。因此我們會謹慎看待客戶的拉貨/排程（releases），並在未來與客戶保持密切聯繫，觀察他們是否會就產量變動做出任何調整。但截至目前，自上次報告以來我們沒有看到任何需要回報的變化，Mike。

Okay. Great. Perhaps now that we're going to be entering some companies' summer shutdown periods, is there any kind of run-through perhaps in some of your bigger markets, perhaps auto in Europe, trucks in North America, trucks in Europe, et cetera? Do you think companies have increased their amounts of shutdowns this summer versus last summer? Just some thoughts about what you think companies are doing to either other bunch more production onto certain days or just work through lower volume orders this year.

好的。很棒。或許接下來我們將進入一些公司的夏季停工期，你能否大致說明一下你們幾個較大的市場，例如歐洲汽車、北美卡車、歐洲卡車等等？你覺得今年夏天各家公司停工的天數，是否比去年夏天更多？也想聽聽你對公司可能採取的作法的看法：例如把更多產量集中到特定工作日，或是今年在訂單量較低的情況下調整生產節奏。

I can't really give you a general answer to that question. Clearly, we are looking at all customers' releases and right now, as I said earlier, we anticipate probably adjustments lower, but as far as a pattern of what we are seeing, they're planning for shutdowns going forward. We can't see a general pattern, although we are anticipating changes based on the July numbers, as you mentioned. So I imagine we will see some downward pressure and some changes in releases going forward, but nothing I can report on in general. Mick, anything you are picking up?

我很難對這個問題給出一個概括性的答案。很明顯，我們正在檢視所有客戶的 releases；如我先前所說，我們可能預期會有向下調整。但就我們目前看到的模式而言，他們確實在規劃接下來的停工期；我們看不出一個普遍的模式。儘管如此，基於你提到的 7 月數據，我們預期會有一些變動。所以我想我們會看到一些向下壓力，以及未來 releases 的一些變更，但沒有什麼可以概括性回報的。Mick，你有觀察到什麼嗎？

No, nothing to add.

沒有，沒有補充。

Okay. I also want to ask about your material cost benefits that you saw in the fiscal first quarter here. Can you maybe clarify or bucket it, what portion of it was from -- directly from the SDG program and what was just you are picking up a good price versus your cost and your sales price in the market? I am wondering what was controlled by you and what is going to stick going forward and what might fluctuate going forward of that savings?

好的。我也想問你們在本財年第一季看到的材料成本效益。你能否更清楚地說明或分類一下，其中有多少是——直接來自 SDG 計畫，多少只是你們在市場上取得了較好的價格（相對於成本與銷售價格）？我想了解哪些是你們可控的、哪些節省未來會持續、哪些可能會隨時間波動？

Mike, in the quarter we had about $4 million of just LME-based benefits, and I would say about half of that is also due to the transaction premium, the Midwest transaction premium. So I would say about $2 million in the quarter is due to, call it, pass-through that we will eventually pass through to the business segments, and then from a pure procurement savings side, we had $3 million to $4 million of savings in the quarter.

Mike，本季我們大約有 400 萬美元是基於 LME（倫敦金屬交易所）帶來的效益；其中我會說大約一半也來自交易溢價，也就是美國中西部交易溢價（Midwest transaction premium）。因此我會說本季大約有 200 萬美元屬於某種「轉嫁」（pass-through），我們最終會把它轉嫁到各事業部。至於純採購節省方面，本季我們約有 300 萬至 400 萬美元的節省。

So that was incremental on top of the market price from --

所以那是額外的節省，疊加在市場價格之上——

[Right].

【對】。

Okay, got you. And those kinds of savings in procurement you think are here to stay, for the most part, correct?

好的，了解。那這類採購節省你認為大致上會持續存在，對吧？

Correct.

對。

And, also, was there any benefit in the quarter from taking content out of the product? In other words, making things lighter or use less materials as well in the quarter? That you know of?

另外，本季是否有任何效益來自於降低產品含料（content）？換句話說，讓產品更輕或使用更少材料？你知道有嗎？

Nothing from a design standpoint.

從設計角度來看沒有。

No.

沒有。

All right, guys. I appreciate the answers. I will hop back in the queue. Thank you.

好的，各位。我很感謝你們的回答。我會回到提問隊列。謝謝。

Matthew Paige, Gabelli & Co.

Gabelli & Co. 的 Matthew Paige。

I was wondering if you could provide any color regarding your data center business.

我想請問你們是否能提供一些關於資料中心業務的補充說明。

Our data center business is based out of the UK, in Leeds, specifically, and so we have a combination of what we called precision air conditioning, data center room, and the matching chiller production that goes along with that.

我們的資料中心業務基地在英國，具體是在里茲（Leeds）。我們的產品組合包含我們所稱的精密空調（precision air conditioning）、資料中心機房（data center room），以及與之配套的冷水機（chiller）生產。

Sales out of that business is about $70 million annually and really supports, more or less, the UK and some exports to mainland Europe and also the Middle East. That's the general overview of that.

該業務年銷售額約 7,000 萬美元，主要支援英國本土市場，並出口至歐洲大陸以及中東。大致概況就是如此。

Right, right, but do you have any color on data center performance in your first quarter?

是，是，但你能否談談你們第一季資料中心業務的表現？

Yes, clearly sales were down on the data center market. As we've identified, there has been some weakness and more uncertainty in the UK markets with capital investment being lower, and we anticipate because of slowing in construction potentially in the UK with the Brexit vote that we are dropping our guidance in that to essentially flat performance going forward versus an increase in sales before.

可以，很明顯資料中心市場的銷售下滑。如我們先前所指出，英國市場出現一些疲弱與更高的不確定性，資本投資也較低；而且我們預期因英國脫歐公投，英國建築活動可能放緩，因此我們把該業務的指引下修為未來基本持平，而不是先前預期的銷售成長。

Perfect. I appreciate the color and thanks for your time.

非常好。感謝補充說明，也謝謝你們的時間。

David Leiker, Baird.

Baird 的 David Leiker。

This is Joe Vruwink for David. This has to be one of the strongest above-market growth quarters for Modine in some time. I am wondering, do you have a sense of either a dollar value or a percentage growth rate for what new business might have contributed to your results? Because it seems, obviously, end markets are weak. To put up a positive organic print is a pretty good result.

我是代替 David 的 Joe Vruwink。這應該是 Modine 一段時間以來最強勁的「超越市場」成長季度之一。我想請問，你們是否能估算新業務對本季結果的貢獻，不論是金額或成長百分比？因為很明顯終端市場偏弱，但你們仍能交出正向的有機成長，這是相當不錯的成果。

In general, as we mentioned in Asia, all the growth is from new business wins, okay, on the oil cooler launches in the automotive segment, some commercial vehicle business as well, but mostly automotive in the Asia region. And, again, new business wins in Europe are also promoting it.

整體而言，如我們在亞洲所提到的，所有成長都來自新業務得標，主要是汽車事業的機油冷卻器上市（launches），也有一些商用車業務，但在亞洲地區以汽車為主。此外，歐洲的新業務得標也在推動成長。

As far as specific magnitude, Mick, do you have any feel for that?

至於具體規模，Mick，你對此有什麼概念嗎？

Yes, maybe just anecdotally, Joe. I would agree and it is really the strength, as we commented on the automotive side. You know the challenges on off-highway and clearly the recent on the Class 8, but when you look at -- we look at our growth in automotive across the world.

有的，Joe，或許用一些非正式的方式來說。我同意你的看法，這確實反映了我們在汽車端的強勁表現。你也知道非公路（off-highway）領域的挑戰，以及近期 Class 8 的情況；但當你看——我們看的是全球汽車業務的成長。

In the Americas, we were north of 15%, 20% type automotive growth in the quarter. In Europe, excluding the BMW we were up high single digits with the BMW wind-down. Excluding that BMW, we were 10% to 20% type sales growth in Europe. And then, obviously, in Asia with the 30% growth rate in revenue, that was almost all automotive based. So clearly across the world, our automotive business is outstripping -- or outpacing the market growth.

在美洲，本季汽車業務成長超過 15%，大約 20% 這樣的增幅。在歐洲，若排除 BMW（業務）縮減（wind-down）的影響，我們是高個位數成長；排除 BMW 後，歐洲銷售成長大約在 10% 到 20% 之間。然後，亞洲營收成長率達 30%，幾乎全部來自汽車。因此很明顯，在全球範圍內，我們的汽車業務成長正在超越——或快於——市場成長。

So just sticking on the automotive business for a second, and after all the work that has been done, Modine might end up being an automotive, primary automotive supplier again by the end of this cycle. But there is clearly some disruption going on in the competitive landscape where you are filling a niche in market, and I think one market you haven't participated in as much historically would be on the Japanese thermal side. And I think the Japanese automakers have been showing more than openness to maybe moving away from the traditional suppliers.

所以先在汽車業務上再停留一下，在完成所有已做的工作之後，Modine 可能在本週期結束時又會回到以汽車為主、成為主要汽車供應商。不過，競爭格局顯然正在出現一些擾動，你們正在填補市場中的一個利基；而我認為你們過去參與相對較少的一個市場，是日本的熱管理領域。我也認為日本車廠對於可能逐步遠離傳統供應商，展現出相當程度的開放態度。

Is that an opportunity ultimately for Modine or do you think there's enough growth just staying within your supplying, supplying some of your current core customers, thinking primarily the German automakers?

這最終會是 Modine 的機會嗎？還是你認為僅僅維持在你們既有的供應範圍內、為目前一些核心客戶供貨（主要是德國車廠），就已經有足夠的成長空間？

Clearly, premium German producers in Europe have really been a big catalyst for us, specifically as it relates to automotive growth in Asia.

很明顯地，歐洲的德國高端製造商一直是我們的重要催化劑，特別是在推動我們於亞洲的汽車業務成長方面。

However, saying that, we do have opportunities to expand our traditional markets and nothing to report on today, but clearly we are looking at, I would say, other Asian-based OE producers, including Japanese. I might also include Chinese domestic suppliers as well.

不過話雖如此，我們確實也有機會擴展我們的傳統市場；今天沒有可報告的具體事項，但很明顯我們正在評估我會說的其他以亞洲為基地的 OE 製造商，包括日本。我也可能會把中國本土供應商納入其中。

So, all in all, I am very pleased with what we call our product-focused approach towards attacking our markets. And we're leveraging those building blocks and using them very well, and it is really paying off from the standpoint of what I would say building a scalable advantaged position in the market in these areas such as oil coolers, liquid charge-air coolers, and other related devices that really directly mount to the engine.

總體而言，我對我們所謂以產品為核心、用以攻佔市場的方法感到非常滿意。我們正在槓桿運用這些基礎要素並且運用得非常好，而這也確實正在帶來回報；從我會說的角度來看，就是在油冷器、液冷增壓空氣冷卻器，以及其他直接安裝在引擎上的相關裝置等領域，建立一個可擴展、具優勢的市場地位。

In addition, we are also being very diligent in our approach to our powertrain cooling products. Again, we have transitioned away from what I would say a traditional Tier 1 in the past in the module and really focused on component strategies that can support that market specifically not only through traditional internal combustion engines, but, as you know also, in electric vehicle where you have some powertrain-related type components that are needed in that market.

此外，我們在動力系統冷卻產品方面也採取非常嚴謹的做法。同樣地，我們已從過去我會說的傳統 Tier 1 模組供應角色轉型，並真正聚焦於可支援該市場的零組件策略；這不僅涵蓋傳統內燃機，並且如你所知，在電動車領域也需要一些與動力系統相關的零組件。

So I just think we are being, what I would say, very smart with our approach and our product strategies and looking where we can grow that into adjacent markets, including a new customer market that we haven't been participating as much in the past.

所以我認為我們在方法與產品策略上做得很聰明，並在尋找可以把這些能力延伸到相鄰市場的機會，包括我們過去參與較少的新客戶市場。

And then, two follow-ups on your Asia business specifically, if I may. The first would be it looks like an $8 million, so year over year, increment if I strip out currency. Is $8 million a quarter a good run rate for new business contribution in Asia this year?

然後，如果可以的話，針對你們亞洲業務我有兩個追問。第一個是：如果我把匯率因素剔除，看起來年對年增加約 800 萬美元。以今年來看，每季 800 萬美元是否是亞洲新業務貢獻的一個不錯的常態水準（run rate）？

And then, my second question would be on the end market, China truck market specifically, you have had some companies not participate in the strength. It seems like it is dominated by certain OEMs that might be a little aggressive on pricing. It seems like Modine is seeing some benefits from the market. So maybe just an update on your customer exposure within the Asia region.

第二個問題是關於終端市場，特別是中國卡車市場：有些公司並沒有參與到這波景氣走強。看起來市場由某些 OEM 主導，而且在定價上可能比較激進。Modine 似乎正在從市場中獲得一些好處。所以想請你更新一下你們在亞洲地區的客戶曝險情況。

So, Mick, you want to go first?

所以，Mick，你要先回答嗎？

Yes, just on the math, we have got in the quarter, it is about $7 million, excluding currency impact, is the topline growth. And I think the organic piece, I think $6 million to $7 million a quarter is sustainable as we look at what is built into our full-year outlook, Joe. Tom?

好的，就數字來看，本季若排除匯率影響，營收成長大約是 700 萬美元。我認為其中的有機成長部分，每季 600 萬到 700 萬美元是可持續的，這也符合我們對 Joe 你提到的全年展望中所內含的假設。Tom？

As far as Asia commercial truck customers, I have to take it a little bit country by country. In India, which we have got a very well-established business and we have got significant powertrain cooling business with both global and domestic truck producers in India, we found that we compete very well in the open market with what we call and you heard me say that we have a new next-generation global truck radiator that we are really moving on from the Origami technology and really established its capability first in India.

至於亞洲商用卡車客戶，我得按國家逐一說明。在印度，我們有非常成熟的業務基礎，並且與印度的全球與本土卡車製造商都有相當可觀的動力系統冷卻業務。我們發現，在公開市場中我們的競爭力很強；我們所謂的新一代全球卡車散熱器，你也聽我提過，我們正從 Origami 技術往前推進，而其能力首先就是在印度建立起來的。

We have extended that to China, where we have landed a domestic OE truck producer of significance in China and are working through our new joint venture, which has been Puxin, now Modine Puxin, has been established in the commercial vehicle business for a significant amount of time. It brings great relationships that we are looking at expanding with some of the leading, if not the leading, truck producer in China as well, with an opportunity from the relationship side.

我們也把這項能力延伸到中國，在那裡我們已拿下一家在中國具相當規模的本土 OE 卡車製造商；並且透過我們新的合資企業（原本是 Puxin，現在是 Modine Puxin）來推進。該合資公司在商用車業務上已經深耕相當長一段時間，帶來了很好的關係網；我們也正尋求與中國一些領先、甚至可能是最領先的卡車製造商擴大合作，從關係面來看有相當的機會。

So we feel very positive with what we are doing specifically and also very comfortable with our, let's say, margin performance that we can deliver there.

因此，我們對於目前正在做的事情感到非常正面，同時也對我們在當地能夠交付的、我會說的利潤率表現感到非常有把握。

Great. I will leave it there. Thank you.

很好。我就先到這裡。謝謝。

Mike Shlisky, Seaport Global.

Seaport Global 的 Mike Shlisky。

Take my follow-up here. I wanted to ask about the diversification and grow parts of the strategy here. I know you can't give us anything specific, but can you maybe tell us what might come first? Is it possible that you might see some kind of M&A announcement before we see some kind of diversification through organic growth and your own designs into new product lines? Tom, give a sense on a timeline as to where we might be expecting to see some of these other things fall into place.

我在這裡問一下追問。我想問關於策略中的多元化與成長部分。我知道你們不能提供任何具體細節，但你們能否談談哪一個可能會先發生？是否有可能在我們看到透過有機成長、以你們自有設計切入新產品線的多元化之前，就先看到某種併購（M&A）公告？Tom，能否就時間表給我們一些概念，讓我們知道大概何時可能看到這些其他事項逐步到位？

Timeline-wise, clearly we wouldn't be talking as much that there weren't really actionable items that we are engaged in. You also heard Mick say that we are investing a amount of resources and expenses to make sure that we are doing this properly.

就時間表而言，很明顯，如果我們沒有在推進一些真正可執行的事項，我們也不會談這麼多。你也聽到 Mick 說，我們正在投入一定程度的資源與費用，以確保我們把這件事做對。

So, first, I want you and the rest of our shareholders to rest assured that we are being very disciplined in this process. So we have walked away from more than we have considered actionable because of not meeting our objectives of being out of the chute accretive.

所以第一點，我希望你以及其他股東放心，我們在這個流程上非常自律。由於未能符合我們「一開始就具增益（accretive）」的目標，我們放棄的案子其實比我們認定可執行而繼續推進的還多。

Number two, hitting a nice strategic fit with our base business in the industrial segment, being building HVAC or the coils business. So, that's the approach timeline.

第二點，是要與我們工業事業部的基礎業務達成良好的策略契合，例如建築 HVAC 或盤管（coils）業務。因此，這就是我們在時間表上的做法。

I guess it is really dependent on when the egg is ready to hatch, but we are clearly far down that process to be able to say that we are optimistic that we can bring together something soon, okay, and that's about as far as I can go on that. Mick, anything to add to that?

我想這真的取決於「蛋什麼時候準備好孵化」，但我們顯然已在流程中走得很深，因此可以說我們樂觀認為不久就能把某些事情整合到一起，好嗎？我大概只能說到這裡。Mick，你要補充嗎？

The one thing I would add, I think from a materiality standpoint, a move the needle standpoint, our expectation would be that an announcement of an acquisition or some sort of business growth in that manner would be the first to come.

我想補充的一點是，從重要性（materiality）、也就是「能否帶動整體表現」的角度來看，我們的預期是：收購的公告，或以那種方式帶來的某種業務成長，會是最先出現的。

We have made organically, Mike, we have made significant investments in air handling and the HVAC space and ventilation products and geothermal products. But off a base of $250 million, $300 million versus the $1.23 billion of vehicular, it is hard organically to move the needle in a rapid way.

Mike，我們在空氣處理、HVAC 領域、通風產品以及地熱產品方面，確實已經做了大量的有機投資。但相較於車用業務 12.3 億美元的規模，這些業務的基礎大約是 2.5 億到 3 億美元；因此單靠有機成長，要在短時間內明顯「推動整體數字」其實很難。

So, I agree with everything Tom said, and then as far as something materially changing, the next step would be if we were able to execute on one of these opportunities.

所以我同意 Tom 說的所有內容；至於要出現具實質影響的變化，下一步就是如果我們能在其中一個機會上成功執行。

Then, Mike, I would like to add, and I'm glad Mick brought that up, this is by no means saying we're deemphasizing anything in the vehicular business. As a matter fact, the Modine Puxin joint-venture recent announcement demonstrates that we're going to continue to assure that we have a very strong and capable product portfolio able to deliver globally to our targeted markets in a very disciplined manner. So I just want to make sure that's on top of that.

另外，Mike，我也想補充一下，而且我很高興 Mick 提到這點：這絕不代表我們在車用業務上降低重視程度。事實上，近期關於 Modine Puxin 合資企業的公告，正顯示我們將持續確保擁有非常強大且有能力的產品組合，能以非常自律的方式在全球交付給我們鎖定的市場。因此我想確保這點也被清楚理解。

Okay, got you. I appreciate the color. Thank you.

好的，了解。謝謝你提供的補充說明。

I am showing no further questions at this time. I would now like to turn the conference back to Kathy Powers.

我這邊顯示目前沒有其他提問。我現在把電話會議交回給 Kathy Powers。

Thank you. This concludes today's call. Thank you for joining us this morning and thank you for your interest in Modine.

謝謝。今天的電話會議到此結束。感謝各位今天早上加入我們，也謝謝各位對 Modine 的關注。