Modine Manufacturing Company (MOD) 2020 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to Modine Manufacturing Company's Second Quarter Fiscal 2020 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded.

各位女士、各位先生，早安，歡迎參加 Modine Manufacturing Company 2020 會計年度第二季財報電話會議。(接線員指示) 提醒各位，本次電話會議將被錄音。

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

現在我想把會議交給本次會議主持人——副總裁、財務主管暨投資人關係負責人 Kathy Powers 女士。請開始。

Good morning, and thank you for joining our conference call to discuss Modine's second quarter fiscal 2020 results. I'm here with Modine's President and CEO, Tom Burke; and Mick Lucareli, our Vice President, Finance and Chief Financial Officer. We will be using slides for today's presentation, which can be accessed either through the webcast link or by accessing the PDF file posted on the Investor Relations section of our website modine.com.

各位早安，感謝各位參加我們的電話會議，討論 Modine 2020 會計年度第二季的業績結果。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。我們今天的簡報將使用投影片，各位可透過網路直播連結存取，或至我們網站 modine.com 的投資人關係專區下載已上傳的 PDF 檔。

This morning, Tom and Mick will present our second quarter results for fiscal '20 and will provide an update to our outlook for the rest of the year. At the end of the call, there will be a question-and-answer session.

今天上午，Tom 與 Mick 將報告我們 20 會計年度第二季的業績，並更新我們對本年度剩餘期間的展望。電話會議最後將進行問答環節。

On Slide 2 is our notice regarding forward-looking statements. 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 2 頁為我們關於前瞻性陳述的聲明。本次電話會議可能包含前瞻性陳述，其內容如同我們的財報新聞稿以及本公司向美國證券交易委員會（SEC）提交之文件所述。

With that, it's 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. In the past few months, we have seen a significant decline in many of the key end markets served by our VTS and CIS segments. In addition to the automotive slowdown mentioned last quarter, we are now projecting additional weakness in the commercial vehicle and off-highway markets that we expect to continue through the remainder of our fiscal year and into fiscal 2021. We are also seeing lower orders in our CIS segment, including both cooler sales to the data center market and coil sales to the HVAC and refrigeration markets. These conditions have led to our second quarter earnings being lower than we originally expected and to a significantly lower outlook for the remainder of the fiscal year. We have, therefore, lowered our sales and earnings guidance for fiscal '20. Mick will provide additional details later in the call.

謝謝你，Kathy，各位早安。過去幾個月，我們看到 VTS 與 CIS 事業部所服務的多個主要終端市場出現顯著下滑。除了上季提到的汽車市場放緩之外，我們目前也預期商用車與非道路（off-highway）市場將進一步走弱，且此趨勢預計將延續至本會計年度剩餘期間並延伸到 2021 會計年度。我們也看到 CIS 事業部的訂單減少，包括資料中心市場的冷卻器（cooler）銷售，以及 HVAC 與冷凍（refrigeration）市場的盤管（coil）銷售。上述情況導致我們第二季獲利低於原先預期，並使我們對本會計年度剩餘期間的展望大幅下修。因此，我們已下調 20 會計年度的營收與獲利指引。Mick 將在稍後提供更多細節。

Given a significant change in our order outlook and market conditions, we are rapidly implementing a number of aggressive cost-containment measures. Some of these are immediate actions that will drive short-term cost savings and some are longer-term initiatives designed to deliver between $25 million and $30 million of annual savings over the next 18 months. These measures include operational and SG&A expense reductions, resulting from accelerated procurement savings, structural changes and head count reductions with the immediate goal of improving our operating earnings and cash flows. It's important for our shareholders to know that we are experiencing a major correction in some of the markets we serve and are taking the appropriate actions now to ensure we stay on path to meet our performance goals.

鑑於訂單展望與市場狀況出現重大變化，我們正迅速推動多項積極的成本控管措施。其中部分為立即行動，可帶來短期成本節省；另一些則為較長期的計畫，目標是在未來 18 個月內實現每年 2,500 萬至 3,000 萬美元的節省。這些措施包括營運與銷售、一般及管理（SG&A）費用的降低，來源包含加速採購節省、結構性調整與人力精簡；其即時目標是改善我們的營業利益與現金流。對股東而言，重要的是要了解：我們所服務的部分市場正經歷重大修正，我們正採取適當行動，以確保我們持續朝達成績效目標的方向前進。

Before turning to the segment results for the quarter, I would like to provide an update on the potential divestiture of our automotive business. As most of you know, we entered into a formal sale process in the late spring, early summer time frame, and we've been diligently working to prepare for the sale of the business over the past several months while managing through a challenging industry environment. Throughout the process, numerous companies expressed interest in the business, and we see -- we received bids from both strategic and financial buyers.

在進入本季各事業部門的業績之前，我想先更新我們汽車業務可能出售（divestiture）的進度。如各位所知，我們在春末、初夏期間啟動了正式的出售流程；過去幾個月，在面對具挑戰性的產業環境之際，我們也持續努力為出售該業務做準備。在整個過程中，有多家公司對該業務表達興趣，我們也——我們收到了來自策略型買家與財務型買家的出價。

Over the last several months, we narrowed the group and believe that we could reach an agreement with 1 particular buyer. Unfortunately, negotiations with the counterparty have recently been terminated. This is due to a combination of factors, including general market and economic conditions, deal complexity and overall value. We have other interested parties and will continue with the sale process while continuing to analyze all strategic options. Clearly, the process has taken longer than anticipated due to the industry and economic uncertainty, but we will make the right decision for our shareholders. The team has worked extremely hard on the separation, and the investment is significant, but we believe this is a prudent investment because it is a necessary step for Modine to exit the automotive business. We believe that becoming a more diversified industrial company is in the best short-term and long-term interest of our shareholders and will make Modine a stronger, more profitable business once complete.

在過去幾個月中，我們縮小了潛在買方範圍，並認為有機會與其中一位特定買方達成協議。不幸的是，近期與該交易對手方的談判已終止。原因是多項因素的綜合影響，包括整體市場與經濟狀況、交易複雜度以及整體估值。我們仍有其他有意願的對象，將在持續評估所有策略選項的同時，繼續推進出售流程。顯然，由於產業與經濟不確定性，流程耗時比原先預期更久，但我們會為股東做出正確的決策。團隊在分拆（separation）工作上投入極大心力，相關投資也相當可觀；但我們認為這是審慎且必要的投資，因為這是 Modine 退出汽車業務所必須完成的步驟。我們相信，成為一家更多元化的工業公司，符合股東的短期與長期最佳利益；一旦完成，將使 Modine 成為更強健、獲利能力更高的企業。

Now turning to our second quarter results. Overall second quarter sales decreased 9%. Our Building HVAC segment had another strong quarter with sales up 12% on a constant currency basis versus the prior year. However, both our VTS and CIS businesses had year-over-year sales declines, primarily due to continued weakness in our end markets and unfavorable currency impacts. Our second quarter adjusted operating income was $20.2 million, down $6.3 million or 24% from the prior year, primarily due to lower sales volume in our VTS and CIS segments.

接著談我們第二季的業績。整體第二季營收下滑 9%。我們的 Building HVAC 事業部再度交出強勁的一季，以固定匯率（constant currency）計算，營收較去年同期成長 12%。然而，VTS 與 CIS 兩項業務的營收皆較去年同期下滑，主要原因是終端市場持續疲弱以及不利的匯率影響。第二季調整後營業利益為 2,020 萬美元，較去年同期減少 630 萬美元或 24%，主要因 VTS 與 CIS 事業部的銷售量下降。

Turning to Page 4. Sales for the VTS segment were down 11% from the prior year or 9% on a constant currency basis. Our key vehicular markets have slowed significantly. Overall sales to commercial vehicle customers were down 15%, and off-highway sales were down 22%. We started seeing the decline late in the first quarter with only significant sales softening in our automotive markets. Early in our second quarter, commercial vehicle market still appeared stable, but we began to hear early word of inventory adjustments from our off-highway customers. At this point, third-party market research estimates continue to signal year-over-year growth. By the end of the second quarter, we saw a significant drop in off-highway orders and started receiving mixed signals for the rest of the year. It wasn't until early October that the third-party market data began reflecting a portion of these market declines and that we learned the full extent of the impact of the second half of our year for both off-highway and commercial vehicle sales. We continue to monitor published market data, but as we talk with our customers, we now understand that the volume declines in the fourth calendar quarter of 2019 and the first calendar quarter of 2020 may be significantly worse than the current data would indicate. In some cases, we expect year-over-year volumes to decline by as much as 20%.

請看第 4 頁。VTS 事業部營收較去年同期下滑 11%，若以固定匯率計算則下滑 9%。我們的主要車用市場已明顯放緩。對商用車客戶的整體銷售下滑 15%，非道路（off-highway）銷售下滑 22%。我們在第一季後段開始看到下滑跡象，當時僅汽車市場出現明顯的銷售轉弱。第二季初期，商用車市場看起來仍相對穩定，但我們開始聽到非道路客戶進行庫存調整的早期訊息。截至當時，第三方市場研究估計仍持續顯示年增成長。到了第二季末，我們看到非道路訂單大幅下滑，並開始收到對今年剩餘期間的混合訊號。直到 10 月初，第三方市場數據才開始反映部分市場下滑，我們也才得知本年度下半年在非道路與商用車銷售方面的完整影響程度。我們持續監測公開的市場數據，但在與客戶交流後，我們現在理解：2019 年第四曆季與 2020 年第一曆季的量能下滑，可能會顯著惡化，程度可能遠超過目前數據所顯示。在某些情況下，我們預期年對年量能可能下滑高達 20%。

We base our forecast both on market data and customer feedback. In the current environment, we are taking a more conservative approach and are preparing for volumes to continue to decline for the balance of our fiscal year. Within the off-highway space, the area most negatively impacted has been large engines and high-horsepower equipment. This includes high-tonnage excavators, harvesters and large tractors where we have a higher mix of business. These impacts are generally in line with what we have seen and heard from the earnings commentary of our large OE customers in this quarter.

我們的預測同時依據市場數據與客戶回饋。在目前環境下，我們採取更保守的做法，並為本會計年度剩餘期間量能持續下滑做好準備。在非道路領域中，受負面影響最嚴重的是大型引擎與高馬力設備。這包括大型噸位挖掘機、收割機與大型曳引機（tractor），而我們在這些領域的業務組合占比較高。這些影響大致與我們在本季從大型原始設備（OE）客戶的財報評論中所見所聞一致。

Sales to customers in the Americas region were down 9% from the prior year, primarily driven by lower sales to automotive and off-highway customers. Sales in Europe were down 13% from the prior year due primarily to a steep drop in commercial vehicle sales as programs continue to wind down. In Asia, sales were down 12% due to lower off-highway sales in China and Korea. This was partially offset by higher automotive sales in China. Adjusted operating income for the VTS segment was $9.3 million for the quarter, which is $6.7 million lower than the prior year. Adjusted operating margin was down 170 basis points to 3.1%. This volume-driven decline has lowered our segment returns to a level that is clearly below our targets. So far, we have rapidly adjusted our direct labor costs, but the VTS team is now focused on quickly reducing our fixed costs as well. Our operations team is aggressively rebalancing production schedules and adjusting labor requirements and overhead spending, in line with our latest sales forecast.

美洲地區對客戶的銷售額較前一年下降9%，主要受汽車及非公路（off-highway）客戶銷售下滑所致。歐洲銷售額較前一年下降13%，主要因商用車銷售大幅下滑，且相關專案持續逐步結束。亞洲銷售額下降12%，原因為中國與韓國的非公路（off-highway）銷售較低。此影響部分被中國汽車銷售增加所抵銷。本季VTS部門的調整後營業利益為930萬美元，較前一年減少670萬美元。調整後營業利益率下降170個基點至3.1%。這種由銷量驅動的下滑，使我們的部門報酬率降至明顯低於目標的水準。迄今我們已迅速調整直接人工成本，但VTS團隊目前也著重於快速降低固定成本。我們的營運團隊正積極重新平衡生產排程，並依據最新銷售預測調整人力需求與間接費用支出。

Please turn to Page 5. Our CIS segment also had another down quarter with sales decreasing 12% from the prior year. Sales to data center customers were down 26% from the prior year. Similar to last year, we knew this quarter's sales would be down from the strong level in the second quarter of last year. We still have a strong relationship with our largest customers in this segment, and they are happy with our performance. We are actively working with them to find opportunities to grow this business. And even though they are still growing their data center capacity, the rate of this growth has slowed, which impacted both the second quarter and our forecast for the rest of the fiscal year.

請翻到第5頁。我們的CIS部門本季同樣再度下滑，銷售額較前一年下降12%。對資料中心客戶的銷售額較前一年下降26%。與去年類似，我們早已預期本季銷售將較去年第二季的強勁水準下滑。我們與本部門最大客戶仍維持穩固關係，他們對我們的表現感到滿意。我們正積極與他們合作，尋找擴大此業務的成長機會。此外，儘管他們仍在擴充資料中心容量，但成長速度已放緩，這影響了第二季表現以及我們對本會計年度剩餘期間的預測。

Part of our future initiatives for the data center piece of our CIS segment is the diversification of our customer base. This market is fairly concentrated, which makes this effort difficult, but we believe the relationship and success we've had with our largest customers is a testament to our products and services and gives us confidence in our ability to obtain new customers.

我們CIS部門資料中心業務未來計畫的一部分，是分散客戶基礎。此市場相當集中，使得這項工作具有挑戰性，但我們相信與最大客戶建立的關係與取得的成功，證明了我們的產品與服務，也讓我們對取得新客戶的能力更具信心。

In addition to data center, sales to other end markets in our CIS segment were down as well due to a tough industrial environment. This segment reported adjusted operating income of $8.9 million, down 31% from the prior year. This decrease was primarily due to lower gross profits driven by lower sales volumes and negative sales mix.

除資料中心外，由於嚴峻的工業環境，我們CIS部門其他終端市場的銷售也出現下滑。本部門的調整後營業利益為890萬美元，較前一年下降31%。此降幅主要來自毛利下降，而毛利下降係由較低的銷售量與不利的銷售組合所致。

The recently announced leadership change over our CIS segment was Scott Bowser, our Chief Operations Officer, assuming responsibility for the segment. We'll also be making further structural and leadership changes to ensure we drive improvement in both the commercial and operational sides of this business. We clearly have some work to do in this segment. I'm confident Scott's proven leadership that this team will execute on our growth and profit improvement plans. In particular, we're focused on profit improvement in our coils business. We're reviewing our profitability by product and by customer and believe there is room to strengthen our pricing structure and distribution channels.

近期宣布的CIS部門領導層變動為：由我們的營運長（Chief Operations Officer）Scott Bowser接手負責該部門。我們也將進一步進行組織架構與領導層調整，以確保在商務與營運兩方面推動改善。我們在此部門顯然還有一些工作要做。我對Scott經驗證的領導力有信心，相信這個團隊將能落實我們的成長與獲利改善計畫。特別是，我們聚焦於線圈（coils）業務的獲利改善。我們正按產品與客戶檢視獲利能力，並認為仍有空間強化定價架構與通路。

In addition, we're also examining the organizational structure of this business. Last year, our VTS business moved from a regionally managed business to a global structure. In CIS, the group is still managed regionally with different areas of focus, strengths and weaknesses around the world. We're now looking to move to a global product structure that will help to improve profitability in our coils business and further strengthen our market presence in our coolers business.

此外，我們也在檢視此業務的組織架構。去年，我們的VTS業務已由區域管理轉為全球架構。在CIS方面，該團隊仍採區域管理，全球各地的重點、優勢與弱點各不相同。我們目前正評估轉為全球產品架構，以協助提升線圈（coils）業務的獲利能力，並進一步強化我們在冷卻器（coolers）業務的市場能見度。

Please turn to Page 6. Turning to our bright spot in the quarter. Sales for our Building HVAC segment increased 10% driven primarily by higher sales of school ventilation and heating products in North America and higher data center sales in the U.K., partially offset by lower nondata center product sales in the U.K. Adjusted operating income increased 35% from the prior year to $8.8 million, and adjusted operating margin increased 300 basis points to 15.8%. This increase was driven by higher sales volume and favorable sales mix.

請翻到第6頁。接著談本季的亮點。我們的建築HVAC部門銷售額成長10%，主要受北美學校通風與供暖產品銷售增加，以及英國資料中心銷售增加所帶動；部分被英國非資料中心產品銷售下滑所抵銷。調整後營業利益較前一年增加35%至880萬美元，調整後營業利益率增加300個基點至15.8%。此成長主要由較高的銷售量與有利的銷售組合所驅動。

We continue to be encouraged by the strong performance in our competitive position in this segment. We recently announced that we entered into a supply agreement with CyrusOne, a global owner and manager of data center properties, to provide cooling solutions for the data center projects in Europe. Our Airedale business unit in the U.K. is in a great position to provide energy-efficient cooling solutions to this growing market.

我們持續對本部門強勁表現與競爭地位感到鼓舞。我們近期宣布已與CyrusOne（全球資料中心不動產的擁有者與管理者）簽訂供應協議，為其歐洲資料中心專案提供冷卻解決方案。我們位於英國的Airedale事業單位具備良好條件，可為此成長市場提供節能型冷卻解決方案。

With that, I'd like to turn it over to Mick for an overview of our consolidated results and to update our outlook for fiscal '20.

接下來，我想把時間交給Mick，請他概述我們的合併業績，並更新我們對2020會計年度的展望。

Good morning, everyone.

各位早安。

Please turn to Slide 7. As I reviewed last quarter, we anticipated a challenging Q2, but things were even more difficult than we expected. Both VTS and CIS had lower year-over-year sales due to negative trends in their key end markets. On the VTS side, we experienced particular weakness with global off-highway and commercial vehicle customers. With regards to CIS, we saw lower orders from data center, commercial HVAC and refrigeration customers. As a result, second quarter sales decreased $49 million or 9%. Excluding the negative FX impact of $11 million, sales were down 7%. As Tom covered, Building HVAC segment sales increased 10%, continuing their positive momentum.

請翻到投影片第7頁。如同我在上季回顧時所提到，我們預期第二季將具挑戰性，但實際情況比我們預期更為艱難。VTS與CIS的年對年銷售均下滑，原因為其主要終端市場出現不利趨勢。在VTS方面，我們在全球非公路（off-highway）與商用車客戶上特別疲弱。就CIS而言，我們看到資料中心、商用HVAC與冷凍（refrigeration）客戶的訂單減少。因此，第二季銷售額減少4,900萬美元或9%。若排除1,100萬美元的不利匯率（FX）影響，銷售額下降7%。如Tom所述，建築HVAC部門銷售額成長10%，延續其正向動能。

Gross profit of $76 million was lower by 14%, resulting in a gross margin of 15.1%. Downside conversion was generally in line with our expectations based on current fixed and variable cost structures. In addition, foreign exchange had a negative impact on our gross profit compared to the prior year. VTS and CIS segments were the primary drivers of our gross margin decline. Within VTS, the gross margin declined primarily due to lower volumes. CIS margins also declined as a result of decreased volumes and unfavorable product mix. The drop in cooler sales to data center customers had a negative impact on segment margins. In addition, we are focused on reversing a negative coils margin trend. As Tom mentioned, improving coils profitability is a top priority of the new segment leadership team. Building HVAC remains a bright spot with gross margin improving 220 basis points.

毛利為7,600萬美元，下降14%，毛利率為15.1%。下行轉換（downside conversion）大致符合我們基於目前固定與變動成本結構的預期。此外，外匯相較前一年對毛利造成負面影響。VTS與CIS部門是毛利率下滑的主要原因。在VTS內部，毛利率下降主要由於銷量較低。CIS毛利率亦因銷量下降與不利的產品組合而下滑。對資料中心客戶的冷卻器（cooler）銷售下滑，對部門毛利率造成負面影響。此外，我們正著力扭轉線圈（coils）毛利率的負向趨勢。如Tom所提，提升線圈（coils）獲利能力是新部門領導團隊的首要任務。建築HVAC仍是亮點，毛利率提升220個基點。

SG&A for the quarter was $67 million. As we face market headwinds, we remain focused on controllable costs to offset lower revenue. Also, please note that $12 million of SG&A was related to preparing the automotive business for sale. These costs have been excluded from our adjusted operating income, and you can see the details in the Appendix. The remaining SG&A expenses decreased by $8 million. Adjusted operating income of $20 million was down $6 million from the prior year. As previously reviewed, the earnings growth in Building HVAC was offset by the decline in VTS and CIS. Lower SG&A helped offset the volume declines and the negative foreign currency impact.

本季SG&A為6,700萬美元。在面對市場逆風之際，我們仍聚焦於可控成本，以抵銷營收下滑。另外請注意，其中1,200萬美元的SG&A與為出售汽車業務所做的準備相關。這些成本已自我們的調整後營業利益中排除，相關細節可見附錄。其餘SG&A費用減少800萬美元。調整後營業利益為2,000萬美元，較前一年減少600萬美元。如先前所述，建築HVAC的獲利成長被VTS與CIS的下滑所抵銷。較低的SG&A有助於抵銷銷量下滑與不利外幣影響。

As usual, our Appendix includes an itemized list of adjustments and a full reconciliation of our U.S. GAAP results. These adjustments totaled $14.2 million. As previously mentioned, $11.9 million relates to the automotive divestiture. The other $2.3 million relates primarily to VTS severance costs as we separate the automotive business and restructure the balance of VTS.

如同以往，我們的附錄包含調整項目的明細清單，以及我們美國 GAAP 業績的完整調節表。這些調整合計為 1,420 萬美元。如先前所提及，其中 1,190 萬美元與汽車業務剝離相關。其餘 230 萬美元主要與 VTS 的資遣成本相關，因我們正分離汽車業務並重整 VTS 其餘業務。

We unfortunately see a large and unexpected swing in our tax rate, which has impacted the adjusted and GAAP results. First, we recorded valuation allowances against certain U.S. tax attributes that had a significant impact on the quarterly tax rate. Second, our projected pretax loss position in the U.S. resulted in losing the 50% deduction of our GILTI inclusion, which is one of the new U.S. tax provisions introduced under the Tax Act. The loss of this deduction actually results in more tax being expensed when companies enter a loss position in the U.S. Adjusted earnings per share in the quarter was $0.13, which is down $0.22 from the prior year. As I just reviewed, the decline is due primarily to lower sales, combined with the higher tax rate.

很遺憾，我們看到稅率出現大幅且出乎意料的波動，影響了調整後與 GAAP 的結果。首先，我們針對某些美國稅務屬性提列估值備抵，對季度稅率造成重大影響。其次，我們在美國預估的稅前虧損狀況，導致我們喪失對 GILTI 納入額 50% 的扣除，這是《稅改法案》下引入的美國新稅制條款之一。當公司在美國進入虧損狀態時，失去此項扣除實際上會導致認列更多的所得稅費用。本季度調整後每股盈餘為 0.13 美元，較去年同期下降 0.22 美元。如我剛才所說，下降主要是由於銷售較低，加上稅率較高所致。

Turning to Slide 8. Our year-to-date cash flow is down due to lower cash earnings and large costs related to the anticipated automotive divestiture. Year-to-date free cash flow was negative $24 million. However, this includes $20 million of payments related to strategy and restructuring costs. Capital expenditures were slightly higher than prior year, and that's partially due to the separation of our automotive business. As I mentioned last quarter, full year capital spending is expected to be slightly higher largely due to these additional costs.

接著看第 8 頁投影片。我們年初至今的現金流下降，原因是現金獲利較低，以及與預期中的汽車業務剝離相關的大額成本。年初至今自由現金流為負 2,400 萬美元。不過，其中包含 2,000 萬美元與策略及重整成本相關的付款。資本支出略高於去年，部分原因是汽車業務分離所致。如我在上季提到的，全年資本支出預期將略高，主要是因為這些額外成本。

In addition to the cash expenditures, the operations teams have been carrying higher inventory to support our automotive plant separation. Despite the high level of cash spending on the automotive separation, we anticipate slightly positive free cash flow in the second half of our fiscal year. And finally, our net debt increased $25 million year-to-date, and our leverage ratio is 2.3.

除了現金支出之外，營運團隊也為了支援汽車工廠分離而持有較高的庫存。儘管在汽車業務分離上有高額現金支出，我們預期在本會計年度下半年自由現金流將略為正值。最後，我們年初至今淨負債增加 2,500 萬美元，槓桿比率為 2.3。

Now let's turn to our fiscal 2020 guidance on Slide 9. Based on recent results, sales trends and customer feedback, we are reducing our guidance to reflect additional market weakness in the second half of our fiscal year. As Tom reviewed, we anticipate further softening across our VTS markets, especially with commercial vehicle and off-highway customers. In addition, we are expecting ongoing weakness in our CIS markets, including a key data center customer. Many companies have not released their 2020 outlook, but given that we have a March fiscal year-end, we have tried to extrapolate the current trends.

現在讓我們看第 9 頁投影片中我們對 2020 會計年度的指引。根據近期結果、銷售趨勢與客戶回饋，我們下修指引，以反映本會計年度下半年市場進一步走弱。如 Tom 所回顧的，我們預期 VTS 各市場將進一步轉弱，尤其是商用車與非道路（off-highway）客戶。此外，我們也預期 CIS 市場將持續疲弱，其中包括一位關鍵資料中心客戶。許多公司尚未發布其 2020 年展望，但鑑於我們的會計年度於 3 月結束，我們已嘗試外推目前的趨勢。

To summarize our updated fiscal '20 guidance, we now project sales to be down 7% to 12%. This represents about $150 million move based on the midpoint of our range with the majority of this reduction coming from the second half of our fiscal year. In Building HVAC, we are expecting sales growth to continue, although slower in the second half. With regards to CIS, we are expecting negative sales growth in the second half of the year primarily due to slowing global markets, along with a negative foreign exchange impact. We also anticipate a significant decline in our VTS segment sales in the second half versus the prior year. The largest decline is in the Americas where all end markets are projected to be down. We continue to have a challenge in Europe with the weakening automotive and off-highway markets and the continued wind-down of certain commercial vehicle programs. We have also reduced our Asia market forecast substantially and expect a small sales decline for the year, offsetting continued market share gains.

總結我們更新後的 2020 會計年度指引，我們目前預估銷售將下滑 7% 至 12%。以區間中點計算，這相當於約 1.5 億美元的變動，其中大部分下修來自本會計年度下半年。在建築 HVAC 方面，我們預期銷售成長將持續，儘管下半年增速較慢。就 CIS 而言，我們預期下半年銷售將呈負成長，主要因全球市場放緩，以及不利的外匯影響。我們也預期 VTS 事業部下半年銷售相較去年同期將顯著下滑。最大降幅在美洲，預計所有終端市場都將下滑。歐洲方面，我們仍面臨挑戰，因汽車與非道路市場走弱，以及部分商用車專案持續收尾（wind-down）。我們也大幅下調亞洲市場預測，並預期全年銷售小幅下滑，以抵銷持續的市占提升。

As Tom mentioned, we are taking immediate cost-cutting actions and targeting significant savings. However, we will need time to fully implement the reductions and achieve the full effect. Adjusted operating income is now expected to be in the range of $85 million to $95 million. The change in our earnings outlook represents the downside conversion of approximately 20% based on the corresponding sales change.

如 Tom 所提到，我們正立即採取削減成本的行動，並鎖定可觀的節省金額。然而，我們需要時間才能全面落實這些削減並達到完整效果。調整後營業利益目前預期介於 8,500 萬至 9,500 萬美元。我們獲利展望的變動，代表在相對應的銷售變動下，約 20% 的下行轉換率（downside conversion）。

In addition to the unusual tax items I previously mentioned, our estimated full year tax rate is now projected to be higher due to our mix of earnings and specifically foreign business tax regulations. For example, in some jurisdictions, we will have income tax expense despite pretax losses. Based on the expected tax rate of approximately 34%, we anticipate adjusted earnings per share will be between $0.75 and $0.90. By separating the automotive business and reducing our cost structure, we are protecting Modine from further market downturns and aggressively positioning the company for significant margin improvements. We remain focused on the areas that we can control and executing on the strategic plan.

除了我先前提到的非典型稅務項目之外，我們對全年稅率的估計目前也預期將更高，原因在於獲利組合，特別是海外業務的稅務法規。例如，在某些司法管轄區，即使稅前虧損，我們仍會產生所得稅費用。以約 34% 的預期稅率計算，我們預期調整後每股盈餘將介於 0.75 至 0.90 美元。透過分離汽車業務並降低成本結構，我們正在保護 Modine 免於市場進一步下行，並積極讓公司具備顯著毛利率改善的有利位置。我們仍專注於可控的領域，並執行策略計畫。

Tom, I'll turn it back to you.

Tom，接下來交回給你。

Thanks, Mick. Four years ago, we announced our Strengthen, Diversify and Grow strategic platform that enabled us to become a more diversified thermal management company. This platform has served as a framework for our decision-making and risk management efforts as a company. We executed on that plan and have continued to execute on this strategy, which led us to the decision to exit the automotive business. This is an important step for us. It will allow us to better focus our capital management time on continuing to strengthen, diversify and grow our business going forward with a new set of strategies that will help us reach our financial and operating targets in the future. This process is taking longer than originally anticipated, but we remain committed to moving towards a structure and valuation that will be in the best interest of our shareholders.

謝謝，Mick。四年前，我們宣布了「強化、多元化與成長」（Strengthen, Diversify and Grow）的策略平台，使我們成為一家更多元的熱管理公司。此平台一直作為公司決策與風險管理工作的架構。我們已執行該計畫，並持續推動此策略，最終促使我們做出退出汽車業務的決定。這對我們而言是重要的一步。這將使我們能更專注於資本管理時間，並在未來以一套新的策略持續強化、多元化與成長，協助我們達成未來的財務與營運目標。此流程所需時間比原先預期更長，但我們仍致力於朝向最符合股東利益的結構與估值邁進。

However, the recent downturn in our end markets is forcing us to take additional, more immediate actions, which includes a cost savings plan, where we're targeting $25 million to $30 million in annual savings over the next 18 months. As I mentioned, these savings will come from a variety of sources, including head count reductions, procurement savings, plant consolidations and other SG&A and overhead reductions. We are starting to take the initial steps, and we'll continue to take the actions necessary to meet this target and time line.

然而，近期終端市場的下行正迫使我們採取額外且更即時的行動，其中包括一項成本節省計畫；我們目標是在未來 18 個月內達成每年 2,500 萬至 3,000 萬美元的節省。如我所提到，這些節省將來自多種來源，包括人力精簡、採購節省、工廠整併，以及其他銷售、一般及管理費用（SG&A）與間接費用的削減。我們已開始採取初步步驟，並將持續採取必要行動，以達成此目標與時程。

We've been through this before and have not only executed but have met our goals. We have a proven track record of responding quickly to market downturns. And this time will be no different. As a matter of fact, we're in a much better position than we've been in the past when the markets have moved against us.

我們以前也經歷過這種情況，不僅執行到位，也達成了目標。我們在快速回應市場下行方面有經過驗證的實績。這次也不會例外。事實上，相較於過去市場不利變動時，我們目前的處境要好得多。

In our CIS segment, we have made a significant leadership change and will make additional changes to how this segment is managed. I am confident that these actions will get this segment back on track.

在 CIS 事業部，我們已進行一項重大的領導階層調整，並將對該事業部的管理方式做出進一步變更。我有信心，這些行動將使該事業部重回正軌。

Meanwhile, our Building HVAC segment continues to generate strong margins and earnings, and we're optimistic about the segment's future growth prospects as it continues to contribute more and more to our total company results. We are well positioned in our key end markets with leading shares in our nonautomotive businesses. We will focus our investment in growth on these industrial markets with strong, long-term megatrends where we have a right to win. We will prioritize capital to invest in businesses that will improve our margins and cash flows.

同時，我們的建築 HVAC 事業部持續創造強勁的利潤率與獲利；隨著該事業部對公司整體業績的貢獻愈來愈大，我們對其未來成長前景保持樂觀。在關鍵終端市場中，我們於非汽車業務擁有領先的市占，因此具備良好定位。我們將把成長投資聚焦於這些具備強勁、長期巨型趨勢（megatrends）的工業市場，在這些領域我們具備勝出的條件。我們將優先配置資本，投資於能改善利潤率與現金流的業務。

And with that, we'll take your questions.

基於以上，我們現在開始回答各位的提問。

(Operator Instructions) Our first question comes from the line of Mike Shlisky, Dougherty & Company.

(接線員指示) 我們的第一個問題來自 Dougherty & Company 的 Mike Shlisky。

Okay. So I wanted to just briefly touch on some of the onetime costs surrounding the auto parts divestiture. When I go back over the last bunch of quarters, it looks like when you add it up, it's -- you've spent at least $27 million so far, I think. If I'm wrong, correct me there. Can I just ask a little color as to kind of what those costs are? I'm not really sure why it would cost so much to sell something that is relatively small from an EBITDA perspective. You might have actually already spent the whole segment EBITDA on these fees. So I'm just kind of curious as to some more detail there. And if you don't end up selling it for some reason, I was just kind of curious, is there any contractual provision that you get some of that cash back from your vendors?

好的。我想先簡單談一下與汽車零件剝離相關的一次性成本。回頭看過去幾個季度，累加起來看起來你們到目前為止至少已經花了 2,700 萬美元，我想是這樣。如果我說錯了，請糾正我。我能否請你們多補充一些背景，這些成本大概是哪些項目？我不太確定，為什麼出售一個從 EBITDA 角度看相對較小的業務會花這麼多錢。你們可能甚至已經把整個部門的 EBITDA 都花在這些費用上了。所以我只是想了解更多細節。另外，如果最後因某些原因沒有賣成，我也想問一下：你們與供應商的合約裡是否有任何條款，能讓你們從供應商那裡拿回部分現金？

Yes. Hey, Mike, it's Mick. I'll take the first shot, and then Tom can comment on the nonfinancial side. Yes, we knew heading into the process when we've talked about the cost to prepare the business for divestiture would be significant. And the primary reasons are -- the biggest driver is we need to stand this up as a separate business, otherwise, we can't carve it out. And having that then integrated into multiple business units over the past and then, most recently, 3 or 4 regions all part of the VTS segment, there's a significant amount of accounting and financial work to be able to separate out the financials, not only on a historical basis but on a monthly and go forward.

是的。嗨，Mike，我是 Mick。我先回答第一部分，然後 Tom 可以補充非財務面的部分。是的，我們在進入流程前就知道，為了讓業務做好剝離準備所需的成本會相當可觀。主要原因是——最大的驅動因素在於我們必須把它建立成一個獨立的業務，否則我們無法把它切割出去。而且過去它被整合在多個事業單位之中，最近又有 3 到 4 個區域都納入 VTS 部門，因此要把財務資料分拆出來需要大量的會計與財務工作，不僅要能在歷史基礎上分拆，也要能按月並在未來持續分拆。

The second big piece of that is, from an IT standpoint, we have to duplicate and stand up the IT systems in order for us to be able to separate the business. The challenge with that and your question about kind of cost benefit is the alternative is -- as you know, the footprint of the business and the alternatives of thinking about a wind-down are really a significant cost to Modine and the shareholders. So Tom and I continue to believe that spending the investment to separate the business gives us the most flexibility to determine what to do with it going forward. But that's the main drivers of the costs we've spent. We anticipate probably another quarter or 2 of investment, and then we'll be ready to stand this business up as a separate entity. And that'll help us going forward quite a bit from both visibility and a full separate entity.

第二個很大的部分是，從 IT 的角度，我們必須複製並建立 IT 系統，才能把這個業務分離出去。這裡的挑戰以及你提到的成本效益問題在於，替代方案是——如你所知，該業務的據點規模，以及考慮逐步關停（wind-down）的替代方案，對 Modine 與股東而言成本其實非常高。因此 Tom 和我仍然相信，投入資源把業務分離出來，能讓我們在未來決定如何處置時擁有最大的彈性。但這些就是我們已經支出的主要成本驅動因素。我們預期可能還需要再投入 1 到 2 個季度，之後我們就能把這個業務建立成一個獨立的實體。這也將在未來從可視性以及完整獨立實體的角度，對我們有很大幫助。

Tom, anything to add?

Tom，還有要補充的嗎？

Yes. No, and I think maybe just a general statement overall. I mean this remains a strategic priority for the company, the divestiture of auto. We went through a process, very thorough process. This narrowed down. We had quite a big interest at the beginning that narrowed down to a smaller number, then we selected 1 potential buyer to go into a final negotiation with. And that just completed and decided not to go forward in this last week's time frame simply because of, quite frankly, valuation from our standpoint and also, I think, concerns on the market conditions that had a factor on that. But this remains a top priority where this will happen. We're going to get back -- we are getting back into the flow of second round of alternatives of what we can consider. And that's -- we'll keep you posted on the time line. But frankly, we want to make sure it's a good deal for the company, for shareholders and -- that we can -- so we're going to -- our focus was to get it done this quarter, but we decided not to pursue that because of the reasons I just said. So it remains a priority. This will happen, and it's just a matter of time of finding the right arrangement with the right buyer.

是的。沒有，我想也許做一個整體性的說明。我的意思是，汽車業務的剝離仍然是公司的策略優先事項。我們走過一個流程，非常徹底的流程。範圍逐步收斂。一開始有相當多的興趣，後來收斂到較少的數量，接著我們選定 1 位潛在買方進入最後談判。而該談判在上週這段時間剛完成，我們決定不再繼續推進，坦白說，原因在於我們對估值的看法，以及我認為市場狀況的疑慮也對此有所影響。但這仍然是最優先事項，這件事會發生。我們將回到——我們正在回到第二輪替代方案的推進節奏，看看有哪些可考慮的選項。至於——我們會持續向你更新時間表。但坦白說，我們要確保這是一筆對公司、對股東都有利的好交易，而且——我們能——所以我們原本的重點是要在本季度完成，但基於我剛才說的原因，我們決定不追求那個方案。因此它仍然是優先事項。這會發生，只是時間問題，要找到與合適買方之間的正確安排。

Okay. And just as a housekeeping item on this, in your comments about looking to save $25 million to $30 million over the next 12 to 18 months, that's not just simply not repeating some of these onetime costs for the auto parts divestiture, right? It's a whole other set of expenses going to be...

好的。另外就一個作業性問題：你們提到未來 12 到 18 個月要節省 2,500 萬到 3,000 萬美元，那不只是單純不再重複這些汽車零件剝離的一次性成本，對吧？而是另一整套費用將會……

Yes, yes, yes. Great question. Good clarification. No, the $25 million to $30 million Tom talked about are operating costs within the company. It's completely separate from the onetime costs we're spending now to separate the auto business.

是的，是的，是的。問得很好。這個澄清很重要。不，Tom 提到的 2,500 萬到 3,000 萬美元是公司內部的營運成本。這與我們目前為分離汽車業務所支出的一次性成本完全無關。

Okay. Can I move on just to CIS quickly here? Maybe a 2-part question. One, can you give us a little color or some commentary as to how easy is it to move to a global structure for that business, given some of the changes in regulation between countries or other issues as far as shipping and facilities and how you acquire raw materials? And also, will there be any -- are you thinking any additional onetime costs there or footprint changes that have to happen? And then maybe secondly, on CIS, given what's been going on and where your forecast is headed and what's happening now for a few quarters here in data centers, is there any risk of goodwill write-down in that business?

好的。我想快速轉到 CIS。也許是兩個部分的問題。第一，你們能否提供一些背景或評論：考量各國法規差異，或在運輸、廠房以及原物料採購方面的其他議題，要把該業務轉為全球化架構有多容易？另外，是否會有——你們是否在考慮任何額外的一次性成本，或必須發生的據點調整？第二，關於 CIS，鑑於近幾季資料中心等領域的情況、以及你們的預測走向與目前的狀況，該業務是否存在商譽減損（goodwill write-down）的風險？

What was the last question, Mike? I didn't quite...

最後一個問題是什麼，Mike？我沒有完全聽清楚……

I was just curious if -- given what's happened with your forecast over the last couple of quarters in data centers and elsewhere in that business, I'm curious if there is a risk of a goodwill write-down from the Luvata deal.

我只是想問——鑑於過去幾季你們在資料中心以及該業務其他領域的預測變化，我想了解：是否存在來自 Luvata 交易的商譽減損風險？

I'll take the first part and then swing it back to Mick on the second part of the question then. As far as -- we've just made the announcement on the leadership change. We'll make an assessment. We've been globalizing the functions within CIS for some time now with the integration. So things like procurement that are over -- involved with optimizing the buys of -- on a global basis are already done. Now this is a matter of really aligning the product strategies. We have, for instance, obviously, the largest share of coils on the open market position globally. That varies by market in different regions, and we haven't really addressed the optimization of how we run commercially as both how we go to market and our selling proposition and also operationally. So there's a lot -- there's things on both ends of this that we can really optimize by making sure we have oversight on a global basis. Yes, it comes down to running regionally from an operations and sales standpoint, but the overall strategy of the product, whether it be coils, which is really where the concentration is; and also coolers, where we have a very strong position in Europe of bringing that focus to North America and other regions as well. So it's really bringing the strategy to a global level, operational and commercial consistency around the globe. That's what we're focused on and feel very confident with what that's going to bring.

我先回答第一部分，然後再把第二部分的問題交回給 Mick。就——我們剛宣布了領導層變動。我們會做出評估。在整合期間，我們已經在 CIS 內部推動職能全球化一段時間了。因此像採購這類——涉及在全球範圍內最佳化採購——的工作已經完成。接下來就是要真正對齊產品策略。例如，我們在全球開放市場的盤管（coils）市占率顯然是最大的。不同區域市場的情況各異，而我們尚未真正處理如何在商業運作上最佳化——包括我們如何進入市場、我們的銷售主張，以及營運面。所以——在這兩端都有很多事情可以透過確保全球層級的監督來加以最佳化。是的，在營運與銷售層面仍會以區域方式運作，但整體產品策略——無論是盤管（這是主要集中領域）；以及冷卻器（coolers），我們在歐洲有非常強的地位——都需要把這個重點帶到北美及其他區域。因此，核心是把策略提升到全球層級，並在全球建立營運與商業的一致性。這就是我們的重點，我們也對這將帶來的成果非常有信心。

Yes. Mike, I'll just jump in on the goodwill question and the impairments. The short answer is no, but we always go through -- we always look at impairment indicators, and we do a heavy look each fiscal year-end and as part of our planning process. As you know, coming out after the acquisition, we had actually had a 1, 2 years of really strong earnings growth. So we're coming off of what is -- we're not happy with it, but the dip is coming off of some really good growth based -- higher than where we bought the business.

是的。Mike，我先插一句回應商譽與減損的問題。簡短答案是否定的，但我們一向會檢視——我們一向會查看是否有減損跡象，並且在每個會計年度年末以及作為規劃流程的一部分進行深入檢視。如你所知，收購完成後，我們其實有過 1、2 年非常強勁的獲利成長。所以我們目前的下滑——我們對此並不滿意——是從一些非常好的成長基礎上回落的——高於我們當初收購該業務時的水準。

The other thing is on the technical accounting side, a lot of that goodwill is applied to different areas of the business. And some of those areas within CIS, they're doing quite well, have strong margins that support some of that -- those intangibles on the balance sheet. So yes, we'll keep looking at it, and next review will be as part of our planning process.

另外一點是在技術會計層面，很多商譽是分配到業務的不同領域。而 CIS 內部的其中一些領域表現相當不錯，具備強勁的利潤率，足以支撐資產負債表上的部分——那些無形資產。所以是的，我們會持續檢視，下一次審視將作為我們規劃流程的一部分進行。

Mike, I'd go back to your first question. This is Tom. One of the things we're talking about CIS, but as we globalize the strategies and the performance prioritization and drive that, you know that we have a data center business in CIS that really focuses, I would say, on the cloud computing side. And we have a computer data center focus in the U.K. out of our Building HVAC group. We really look at how we can link those 2 together to have 1 strong face to the market. That's early days, but that's something we're concentrating on as well to make sure that we can take advantage of both those channels to market in a smarter way to grow that business is a priority.

Mike，我回到你第一個問題。我是 Tom。我們在談 CIS 的其中一點是，當我們把策略全球化、把績效優先順序全球化並推動落實時，你知道我們在 CIS 有一個資料中心業務，我會說它主要聚焦在雲端運算這一端。而我們在英國則透過我們的 Building HVAC 事業群，聚焦於電腦資料中心。我們真正關注的是如何把這兩者連結起來，對市場呈現一個強而有力的單一面貌。這還在早期階段，但這也是我們正在專注的方向，以確保能更聰明地運用這兩個通路進入市場，來成長該業務，這是優先事項。

Okay. I just want to ask a question also on the upcoming cost savings. Will all the cost savings be in just VTS and CIS or even be in the auto business that's being carved out here? And also, is anything going to be in the HVAC business? Or is it all going to be in those 2 main segments?

好的。我也想問一個關於即將到來的成本節省的問題。所有的成本節省都只會在 VTS 和 CIS 嗎？還是也會在這裡正在被分拆出去的汽車業務？另外，HVAC 業務會不會也有一些？還是全部都會集中在那兩個主要部門？

Well, clearly, the focus and priority is on the VTS and CIS side, but we're going to look at all flows of workflows and where we can have opportunities. On the growth side of Building HVAC, we want to make sure we're leveraging everything possible there. So as I mentioned, the data center business, we've had a recent announcement of the success with CyrusOne recently, a co-location across Europe opportunities. And so we're going to be careful on that front, but we want to support that and deliver fully and be able to grow that even further. But the main focus, VTS and CIS, and then, of course, we mentioned using procurement savings, accelerating opportunities there. So in others, we'll be, I'd say, targeted in spots but mostly VTS and CIS.

嗯，很明顯，重點與優先順序是在 VTS 與 CIS 這一端，但我們會檢視所有工作流程的流向，以及我們在哪些地方有機會。在 Building HVAC 的成長面，我們希望確保把那邊所有可能的槓桿都用上。所以如我提到的資料中心業務，我們最近也宣布了與 CyrusOne 合作的成功案例，涵蓋歐洲各地的機房託管（co-location）機會。因此在這方面我們會很謹慎，但我們希望支持它、完整交付，並且能夠進一步擴大成長。但主要焦點仍是 VTS 與 CIS，然後當然，我們也提到運用採購節省、加速那邊的機會。至於其他部分，我會說會在某些點上有針對性地進行，但大多仍在 VTS 與 CIS。

Mick, can you add anything to that?

Mick，你能補充一下嗎？

Yes. Just -- yes, it's a balancing act we'll have to do with regards to your question on the automotive side versus the rest of VTS. Clearly, automotive is down as well as part of VTS. So -- but at the same time, we're -- as Tom's indicated, we're talking to buyers. And so you have to be very careful about the level of adjustments, reductions we would take in the middle of a sale process. I think it'd be a much heavier look. Obviously, our $25 million to $30 million is, Tom and I are focused on the remaining company. So as to your question about the coming out of the onetime separation costs [or Dakota], we lean and put all these costs -- things that aren't going to stay with us, it won't help us in the long run. So most of the focus is going to be on the remaining part of Modine.

可以。就是——是的，針對你問的汽車端相對於 VTS 其餘部分，我們必須做一個平衡。很明顯，汽車業務也在下滑，這也是 VTS 的一部分。所以——但同時，我們——如 Tom 所指出的——正在與買家洽談。因此在出售流程進行到一半時，你必須非常小心我們會做出何種程度的調整與削減。我認為需要更深入的檢視。顯然，我們的 2,500 萬到 3,000 萬美元（節省目標），Tom 和我聚焦的是剩餘公司。所以就你問到的一次性分拆成本結束後（[或 Dakota]），我們會精簡並把所有這些成本——那些不會跟著我們留下來、長期也不會幫助我們的事情——移除。因此大部分的重點會放在 Modine 的剩餘部分。

Okay. Okay. And if I could squeeze in one more here before I pass along. I just want to confirm, in the quarter, there were no major impacts to your numbers due to the auto strike at 1 of the big OEMs. And maybe as a secondary to that question, one of their plants -- or I think, actually, a few of them are not far from your facilities. Maybe that's by coincidence or from old relationships. I'm curious if you've seen any good hiring trends for, I guess, folks who are either fed up or trying to find something new from the auto business.

好的。好的。如果我在交給下一位之前再塞一個問題。我想確認一下，本季你們的數字沒有因為某一家大型 OEM 的汽車罷工而受到重大影響。另外作為延伸問題，他們其中一座工廠——或者我想其實有幾座——離你們的設施不遠。也許這只是巧合，或是源自過去的合作關係。我想知道你們是否看到一些不錯的招募趨勢，譬如一些對汽車業感到厭倦或想找新機會的人。

The first part of that question is we've had some impact, okay, but not material, okay, to mention here with supplying engine products to the GM in North America specifically. And as far as personnel, I can't answer that. I don't know. I don't know that in the site of where we have our operations, we're probably going through some levels of reductions across the plant operations as far as rebalancing loads. So I don't know the answer to that one. But the first part is clearly impacted but not materially.

這個問題的第一部分是，我們確實有受到一些影響，好嗎，但並不重大，好嗎，不至於在這裡特別提出，主要是我們在北美向 GM 供應引擎產品的部分。至於人員方面，我無法回答。我不知道。我不確定——就我們營運據點而言，我們可能正在就產線營運做一些程度的縮減，以重新平衡負載。所以那一題我不知道答案。但第一部分確實有影響，只是不具重大性。

Our next question comes from the line of Dave Leiker with Baird.

我們的下一個問題來自 Baird 的 Dave Leiker。

On Building HVAC, you're doing well there. Are there -- when you look on the horizon, are there any signs that there's some issues that are popping up there, some weakness in the end markets or anything along those lines that could come up in the next couple of quarters?

在 Building HVAC 方面，你們做得很好。當你往前看時，是否有任何跡象顯示那邊出現一些問題、終端市場有些疲弱或類似情況，可能在接下來幾季浮現？

If you look -- and we mentioned the nondata center sales in the U.K. are down some, okay, so offset by significant growth in the data center. So I think that's a Brexit issue with things slowing down in England. But right now, it's -- that's what we see at this point. I can't say -- in North America, the sales are great. We have a great heating sales season going on right now. I mentioned school product sales that are going strong. So not really seeing any indication in North America.

如果你看——我們也提到英國的非資料中心銷售有些下滑，好嗎，但被資料中心的顯著成長所抵銷。所以我認為那是英國脫歐（Brexit）造成英格蘭放緩的問題。但就目前而言，這就是我們此刻看到的情況。我不能說——在北美，銷售表現很棒。我們目前正處於很好的供暖銷售旺季。我也提到學校產品的銷售持續強勁。所以在北美並沒有真的看到任何警訊。

And then on the data center side, I know you've been working and trying to broaden that. But are there any actions or any signs that you're able to break into some other customers in that data center to help smooth out the flows there?

另外在資料中心方面，我知道你們一直在努力並嘗試擴大客戶基礎。但是否有任何行動或跡象顯示，你們能打入其他資料中心客戶，以協助讓那邊的出貨/需求波動更平順？

Yes. We're putting a lot of time into that, David, as we talked last quarter with some questions. And we've got a team of people that we're pooling together, and I mentioned it earlier in a follow-up question on the earlier caller that bringing together with this change we made in leadership in CIS, bringing together a team as 1 face to the market that we can leverage relationships that we're building in both segments now, but leverage that into 1 voice to the market. For instance, in the U.K., I'll repeat the CyrusOne order that we received that's significant going there, that is a North America-based company. They clearly are interested in us in supplying them in this region, okay, and we're really looking at the best way to do that. That also means that you deal through engineering firms and contractors that -- so the specified relationships are very important. We've got a very strong specified relationship arrangement set up based on both sides of -- both channels to market that we're putting in place to leverage. So we're putting on the time, putting on the right resources and again, addressing our approach to market that we should be able to talk a lot more about that in the next earnings call.

是的。David，我們在這方面投入了很多時間，正如上季在問答時提到的。我們已經把一個團隊的人力整合起來；我先前在回覆前一位來電者的追問時也提到，隨著我們在 CIS 的領導層調整，我們要把團隊整合成對市場的「單一窗口」，以便把我們目前在兩個事業區所建立的關係加以運用，並以一致的聲音對外。例如在英國，我再提一次我們拿到的 CyrusOne 訂單，那是一筆在當地相當重要的訂單，而 CyrusOne 是一家以北美為基地的公司。他們顯然有興趣由我們在這個區域為其供應，好嗎？我們也正在評估最佳的執行方式。這也意味著你會透過工程公司與承包商來運作——因此，被指定（specified）的合作關係非常重要。我們已建立非常強的指定合作關係架構，這是基於——基於我們正在建立的兩個市場通路，並加以槓桿運用。所以我們正在投入時間、配置正確資源，並再次調整我們的市場策略；我們應該能在下一次財報電話會議上談更多。

Okay. Great. Just 1 more item on CIS. Is there any -- are there any targets you can share in terms of what you hope to accomplish to reposition that in terms of future profitability, growth rates along the way? Or any parts of that business, you may not want to be in that just don't offer the opportunity you want?

好的。很好。關於 CIS 還有一點。就你們希望透過重新定位來提升未來獲利能力、成長率等方面，有沒有任何——你們能分享的目標？或者在那個業務中，有沒有某些部分你們可能不想再做，因為它們無法提供你們想要的機會？

Yes. We clearly have some targets out there. I'll let Mick get into those in detail. But we want to get -- I'm thinking 200 to 300 basis points worth of improvement going in really driving the changes that Scott is leading right now.

有的。我們確實有一些目標。我會讓 Mick 更詳細說明。但我們希望——我想大概能改善 200 到 300 個基點，主要是透過 Scott 目前正在主導的變革來推動。

But Mick, do you want to go into further color with that?

不過 Mick，你要不要再補充一些細節？

Yes. Again, we were on a -- we're, frankly, on a really good roll. We got the good execution of our initial synergies. We had some good momentum behind us with one of our -- the large data center customer. And last year, we finished, David, about 9.5% EBITDA. We think that business should be running more in 12% to 13% in the next 1 to 2 years here, 1.5 years. We've got -- and a good path forward. I think we know your question about businesses we need to exit. No, the big -- everybody knows the largest piece of that business is in coils, and Tom talked about that. That's just getting back to blocking and tackling with regards to how we build cost and price that product. But we see significant margin improvement. This year, it will probably be down a little bit, more like a 9% EBITDA, but our goal and the team's target is 12% or 13% EBITDA in the next 18 months.

好的。再次強調，我們——坦白說，我們目前的進展真的很不錯。我們把初期協同效益執行得很好。我們也在其中一位——大型資料中心客戶那裡累積了不錯的動能。David，去年我們的 EBITDA 約為 9.5%。我們認為在未來 1 到 2 年（約 1.5 年）內，這個業務應該能運行在 12% 到 13% 的水準。我們有——而且有一條很好的前進路徑。我想我們理解你問的是是否有需要退出的業務。沒有。大家都知道那個業務最大的一塊是在線圈（coils），Tom 也談過。那就是回到基本功：我們如何建立成本並為該產品定價。但我們看到顯著的毛利率改善空間。今年可能會略微下滑，EBITDA 可能更接近 9%，但我們的目標以及團隊的目標是在未來 18 個月達到 12% 或 13% 的 EBITDA。

And our next question comes from the line of Matt Summerville, D.A. Davidson.

下一個問題來自 D.A. Davidson 的 Matt Summerville。

A couple of questions. First, can you give us some sort of feel for what your book-to-bill looked like in the commercial vehicle and off-highway portions of VTS and then whether or not the results we're seeing in your coils business are, indeed, indicative of market share loss?

我有幾個問題。第一，能否讓我們大致了解一下，你們在 VTS 的商用車與非公路（off-highway）業務部分，接單/出貨比（book-to-bill）大概是什麼樣子？另外，你們在線圈業務看到的結果，是否確實反映了市占率流失？

Okay. So book of business in commercial vehicle, I mean, obviously, we don't project, give out that data publicly. We're very pleased with our business wins around the globe on the commercial vehicle. So we spent time recently with our -- several of our commercial vehicle customers and really understanding their strategies but more importantly, what they see coming up in the next 12 to 18 months in their outlook, which is one of the reasons we adjusted our sales down. But we're winning our business. We're well positioned as a top 3 position in North America and Europe. Smaller in China, of course, but growing with both multinationals and domestic customers there. We did see some pushout with delayed launches due to China 6 in China with 1 or 2 specific customers there that were part of that delay. So -- but I -- so a very strong position, very well, good product platforms that we offer that we're able to leverage in a smart manner. And then, of course, going into specialty bus and truck, a little bit deeper into the commercial vehicle segment, a great position in North America and growing in Europe, especially with electrification opportunities that we're seeing there that we're involved with all the major bus companies and specialty truck companies as well. So very, very positive on our position in commercial vehicle in that perspective.

好的。關於商用車的在手訂單（book of business），我的意思是，很明顯我們不會對外公開預測或提供那類數據。我們對於在全球商用車領域贏得的業務非常滿意。所以我們最近花了時間與——我們的幾位商用車客戶交流，深入了解他們的策略，更重要的是了解他們對未來 12 到 18 個月展望中所看到的情況，這也是我們下調銷售預期的原因之一。但我們仍在贏得訂單。我們在北美與歐洲都處於前三大的有利位置。在中國當然規模較小，但我們正與跨國企業及當地客戶一起成長。我們確實看到一些遞延（pushout），因為中國的「國六」（China 6）導致 1 到 2 個特定客戶的新產品導入延後，這也造成了部分延遲。所以——但我——總之，我們的地位非常強，產品平台也很好，能以聰明的方式加以槓桿運用。此外，在特種巴士與卡車方面，也就是更深入商用車細分領域，我們在北美的地位很強，並在歐洲成長，尤其是我們看到並參與的電動化機會；我們與所有主要巴士公司以及特種卡車公司都有合作。因此，從這個角度看，我們對商用車的定位非常、非常正面。

On the second part of your question was getting back to CIS. I think it was...

你問題的第二部分是回到 CIS。我想是……

Coil share.

線圈市占。

Coil share. And from that standpoint, we believe our coil shares, again, as I mentioned, are just independent position. We think that we're approaching 25%, 30% market share in that globally and that we supply and leveraging that is very important, thousands of customers. The visibility there is far less as far as lead time sales and that type of thing, which is one of the strengths we have is responding to orders in a fast way in a matter of weeks. And so we really need to focus on how we manage that commercially, making sure we're getting all the value from a value proposition and pricing standpoint and then really working on the investments necessary to have fast response and be able to respond to those customers' needs to get out the door and also vertical integration, which helps us on the cost side, too. So it's -- share-wise, we feel that we're in a leading position, which we need to leverage that better to take advantage of that position.

線圈市占。就這點而言，我們相信我們的線圈市占——如我提到的——是處於獨立且領先的位置。我們認為全球市占正接近 25% 到 30%，我們供應的客戶有數千家，如何槓桿運用這一點非常重要。在那裡的能見度（例如交期、銷售等）要低得多；而我們的一項優勢就是能在幾週內快速回應訂單。因此我們必須真正聚焦在如何以商業方式管理它，確保從價值主張與定價角度取得全部價值，並投入必要的投資以維持快速反應、滿足客戶需求、把產品順利出貨；同時也要推進垂直整合，這也能在成本端幫助我們。所以——就市占而言，我們覺得自己處於領先位置，而我們需要更好地槓桿這個位置，以充分利用這項優勢。

With respect to the $25 million to $30 million of anticipated restructuring-related savings, Mick, what is the cash cost out the door to accomplish that? And can you give us some sort of sense in terms of the cadence of realization as we look out through the balance of fiscal '20 and into your early part of fiscal '21, please?

關於預期可帶來 2,500 萬到 3,000 萬美元的重整（restructuring）相關節省，Mick，為了達成這個目標，實際需要付出的現金成本（cash cost out the door）是多少？另外，能否請你談談節省實現的節奏（cadence of realization）：從 2020 會計年度剩餘期間一路看到 2021 會計年度前段，會是怎樣的分布？

Yes. Yes. Great question, Matt. So we estimate, right now, it's early, but most likely, the cash cost to achieve that savings will probably be between $3 million and $5 million total. With regards to annualizing the savings, we feel confident we can get $4 million to $5 million in this fiscal year. And then the balance of it, 90% of it hitting in next fiscal year. And we've got -- and obviously, we're targeting other ideas above and beyond. There may be a little bit that carries over, but our goal here is to get the full $25 million to $30 million within the next 18 months, again, with $4 million to $5 million hitting here in the next 4 or 5 months.

是的。是的。好問題，Matt。我們目前的估計——現在還早——但最可能的情況是，為了達成這些節省，總現金成本大概會在 300 萬到 500 萬美元之間。至於把節省年化（annualizing the savings），我們有信心在本會計年度可實現 400 萬到 500 萬美元。其餘部分，其中 90% 會在下一個會計年度反映出來。而且我們也——當然，我們也在尋找更多超出這些之外的想法。可能會有一小部分延後，但我們的目標是在未來 18 個月內達成完整的 2,500 萬到 3,000 萬美元；同樣地，其中 400 萬到 500 萬美元會在接下來 4 到 5 個月內落地。

Is there a way maybe to parse out? If you look at the EPS guide, take down, parse out, how much of that is being driven by the dynamics you talked about in commercial vehicle off-highway in VTS? How much is being driven by CIS? And then what the -- I could calculate after the call, but what the impact is on the tax rate change, if you have it?

有沒有辦法把它拆解出來？如果你看 EPS 指引的下修，拆開來看，其中有多少是由你在 VTS 的商用車與非道路（off-highway）動態所驅動？又有多少是由 CIS 所驅動？另外——我可以在會後自己算，但如果你們手上有數字的話——稅率變動的影響是多少？

Yes. So when we think about the change in the guidance going back to last quarter, from an operating income standpoint, it's really pretty evenly split, a little bit more on the VTS side, but it's been a heavy mix here of VTS and CIS. And the tax side, I haven't quantified it, but we could do that with you offline. We've clearly moved up on the tax side from a 26% rate to a 34% rate. So the downturn has been really then split on the VTS and CIS sides.

可以。所以當我們回頭看相較於上季指引的變動，從營業利益的角度來看，其實分布相當平均，VTS 端稍微多一點，但整體來說 VTS 與 CIS 的占比都很高。至於稅務端，我還沒有量化，但我們可以私下跟你一起算。我們很明顯在稅務端從 26% 的稅率上調到 34% 的稅率。因此這次下修基本上就是在 VTS 與 CIS 兩端分攤。

Got it. And with respect to Building HVAC, I just want to make sure I heard you guys correctly. You anticipate that business still growing organically in the back half of the year. Maybe help me understand some of the drivers there, given you're up against a plus-16 organic comp in Q3 and a plus-25 organic comp in Q4. So maybe talk through that a little bit.

了解。關於 Building HVAC，我只是想確認我有沒有聽對。你們預期該業務在下半年仍會有內生成長。但考量你們在 Q3 面對 +16 的內生比較基期、在 Q4 面對 +25 的內生比較基期，能否幫我理解一下背後的驅動因素？所以也請你們稍微說明一下。

Yes. Well, clearly, in Q3, we'll be finishing out our heater sales, which is in -- which is our strength of the North American side of that business coming off the strong school season, which was more of a Q1-, Q2-type phenomenon for retrofitting schools. The big focus on the back end here is in the U.K. as well as the data center orders that we've landed, the CyrusOne deliveries that I've talked about. So we feel very, very positive about the organic side of that growth opportunity and expanding on it.

是的。很明顯地，在 Q3 我們會完成暖氣機（heater）銷售的收尾，這是該業務北美端的強項，且是延續強勁的學校季；那比較像是 Q1、Q2 的現象，主要是學校改裝（retrofit）。下半年後段的重點則是在英國，以及我們拿下的資料中心訂單，也就是我提過的 CyrusOne 交付。因此我們對於這個內生成長機會、以及進一步擴大它，都感到非常、非常正面。

And our next question comes from the line of Brian Sponheimer, Gabelli Funds.

下一個問題來自 Gabelli Funds 的 Brian Sponheimer。

A couple of different questions here. Just going back to the comment that the cash costs out the door to save $25 million to $30 million on an annual basis is $3 million to $5 million. I guess the question then becomes, why wasn't that done sooner? I guess we'll start there.

我有幾個不同的問題。先回到你提到的：為了每年節省 2,500 萬到 3,000 萬美元，所需的一次性現金成本（cash costs out the door）是 300 萬到 500 萬美元。那我的問題就是：為什麼沒有更早做？我想先從這裡開始。

Yes. Well, clearly, the timing of this drop -- Mick mentioned that the majority of the drop is in the second half of the year, which is still in front of us. We are working on driving the sales and focus [of that win]. So this is kind of a recessionary [just] let's get ready. Okay, as I talked about in my early comments that we're in better shape now and responding early to what I think is going to be a pretty deep and broader potential contraction in our markets anyway. I -- but so with that in mind, we've really focused on making sure that we are being as aggressive as we need to be. Okay. So yes, we're going to take some risk here with some changes we're going to manage, but we're thinking we're doing it in a smart way. We want to come out of this thing with -- we're not taking our eye off those targets on our margins that Mick mentioned as far as what we're prescribing for the company to be. And this is a necessary change to adjust for that contraction.

是的。很明顯地，這次下滑的時間點——Mick 提到，下滑的大部分發生在今年下半年，而下半年還在我們前方。我們正在努力推動銷售並聚焦[那個贏單]。所以這有點像是景氣衰退式的[只是]先做好準備。好，如同我在開場提到的，我們現在狀態更好，也更早開始回應；我認為我們的市場可能會出現相當深、且更廣泛的潛在收縮。因此基於這點，我們確實把重點放在確保我們採取足夠積極的作法。好。所以是的，我們會在一些我們要管理的變更上承擔一些風險，但我們認為我們是以聰明的方式在做。我們希望走出這段期間時——我們不會忽視 Mick 提到的那些毛利率目標，也就是我們對公司所設定的方向。而這是為了因應那個收縮所必須做的調整。

So it -- on the procurement side, those savings that we've put a lot of investment into our procurement team over the last couple of years and start to deliver and now we're broadening even more, not only just through straight -- the direct buy, but indirect buy, logistics savings and those type of things, I think, is a natural maturity level where we are with our whole supply chain management focus. So I think that's just right in line with the timing of building out a fully functional and, I would say, operational excellence within the supply chain. And then -- and the rest is just contracting on the variable side. And then I think we're structurally going to have to make some changes to get through this contraction. So good question.

至於採購端，我們過去幾年對採購團隊投入了很多資源，現在開始交付成果，而且我們正在進一步擴大，不僅是直接採購（direct buy），也包含間接採購（indirect buy）、物流節省以及這類項目；我認為這反映了我們整體供應鏈管理聚焦所達到的一個自然成熟度。所以我覺得這與我們建立一個完整運作、我會說是供應鏈內的營運卓越（operational excellence）的時程非常一致。然後——其餘部分就是在可變成本端的收縮。另外我認為，為了度過這次收縮，我們在結構上將不得不做一些改變。所以這是個好問題。

Mick, you want to add to that?

Mick，你要補充嗎？

Yes. Just a little more color on the forecast question and pulling levers sooner. As we were on the call last time, and we talked in July, we knew there was some softness. And also back to the automotive discussion, we have been pulling levers this year on cost reductions, also planning for the separation of auto. So year-to-date, we had already pulled cost reduction, head count levers in the tune of $5 million to $6 million and annualized. And then the second quarter came in a little bit lighter on the top line than we expected as that was closing out. September forecast, we saw a drop, a significant drop in CIS and VTS. And then in October, we took a really hard look again. Tom talked about some mixed signals we were getting from [EDR] order rates from customers versus what we were seeing or actual pulls out of that. So we went back and we did another really deep scrub in October, rolled that up. And as we come to you today, obviously, we immediately went into. Okay. Based on the current forecast and concerns Tom laid out about everybody looking into 2020, that's when we said we're going to set a bigger target and go get it right now. That's how we -- where we ended up today, Brian.

要。我再補充一些關於預測問題以及更早拉動槓桿的背景。如同我們上次電話會議、以及我們在 7 月討論時，我們知道有一些疲軟。另外回到汽車的討論，我們今年一直在拉動成本降低的槓桿，也在規劃汽車業務的分拆。所以截至目前為止，我們已經透過成本降低、員工人數（headcount）等槓桿，做了約 500 萬到 600 萬美元（年化）的調整。接著第二季在營收端比我們在結束時預期的稍微弱一些。到了 9 月的預測，我們看到 CIS 與 VTS 出現下滑，而且是顯著下滑。然後在 10 月，我們又非常嚴格地再檢視一次。Tom 談到我們從客戶那邊看到的 [EDR] 訂單速率訊號有些混雜，與我們看到的、或實際拉貨（pulls）呈現的狀況不一致。所以我們在 10 月回頭做了另一輪非常深入的盤點（deep scrub），並把結果彙總起來。而當我們今天來跟各位更新時，很明顯地，我們立刻就進入。好。基於目前的預測，以及 Tom 提到大家在看 2020 年時的疑慮，我們才說要設定更大的目標，並且現在就去達成。Brian，這就是我們今天走到這一步的原因。

Okay. So just -- I just want to be clear on this because, I mean, it's a 6x payment -- it's a 6x recovery on this in a 2-year time frame, which seems like an amazing return. This is more loss prevention, so it stands to reason that when things do get better, that some of that $25 million to $30 million is clearly going to have to come back into the business.

好。所以——我只是想把這點釐清，因為這等於是 6 倍的投入回收——在兩年的時間框架內是 6 倍回收，這看起來像是非常驚人的報酬。這比較像是損失防範（loss prevention），所以合理推論是，當情況好轉時，那 2,500 萬到 3,000 萬美元中的一部分，顯然會需要再投入回到業務中。

Well, I mean, I think this $25 million to $30 million includes some investments we're going to make, okay? I mentioned data center focus. There, we know we need to add some key resources and talent that we're planning on. So it's not just throw the cargo off the side of the ship here. We are making sure that we're focused and ready for the future where we want to grow. So the procurement savings, again, is more of an investment of resources and processes, so that if you look at the target we have set in there, which we haven't publicly split that out yet, but it's a significant portion, it's a matter of more effective and efficient focus on driving not only direct sales but technical, direct -- excuse me, direct buy, but also technical changes to help optimize the buy, getting deeper into indirect buy using data analytics and smart things we can do there as well as, I mentioned, the whole supply chain. So there, it's just natural progression where we're going on the supply chain management. And then on the sales side of adjusting down, it's really a focus on getting ready for it. What I'm saying is it's a pretty deep and broadened drop in some key markets that we need to be prepared for and are not going to be caught standing flat-footed. So it's a combination.

嗯，我的意思是，我認為這2,500萬至3,000萬美元包含了我們將要進行的一些投資，好嗎？我提到資料中心的聚焦。在那方面，我們知道需要增補一些關鍵資源與人才，這也是我們正在規劃的。所以這不只是把貨物從船邊丟下去而已。我們正在確保自己聚焦並為未來做好準備，朝我們想要成長的方向前進。因此，採購節省（procurement savings）再次強調，更像是對資源與流程的投資；如果你看我們在其中設定的目標——我們尚未對外公開拆分——但它占比相當可觀；這關乎更有效率、更有效能地聚焦，推動的不僅是直接銷售，而是技術面、直接——抱歉，是直接採購（direct buy）——同時也透過技術變更來協助最佳化採購；並且更深入到間接採購（indirect buy），運用資料分析與我們能做的智慧化手段，以及我提到的整個供應鏈。所以在那方面，這就是我們在供應鏈管理上前進的自然演進。然後在銷售端的下調，重點其實是為此做好準備。我的意思是，在一些關鍵市場出現相當深且廣的下滑，我們必須做好準備，不會措手不及、站在那裡毫無準備。所以這是多種因素的組合。

Okay. All right. So let's go over to the missed opportunity on the sale of the business. How far apart were the 2 groups? I want to be clear. So the $20 million -- or $27 million that's been spent so far in separating the light vehicle business, how much of that is consulting fees and banker fees?

好的。好。那我們來談談出售該業務的錯失機會。兩方差距有多大？我想把話說清楚。所以，到目前為止為了分拆輕型車業務已花費的2,000萬美元——或2,700萬美元，其中有多少是顧問費和投行費？

Yes. There has been no banking fees, Brian, in that amount. So the majority of it is not consulting per se. It's a third-party accounting work to do the separation and legal work. So most of it is accounting, some IT and legal in there, no banking fees.

是的。Brian，那筆金額裡沒有任何投行費。所以其中大部分嚴格來說並不是顧問費。而是第三方會計工作，用於進行分拆，以及法律工作。所以大多是會計費用，另外有一些IT和法律費用，沒有投行費。

Okay. And could you help contextualize how far apart buyer and seller were in this from a price perspective?

好的。你能否協助我們從價格角度，理解一下買方與賣方之間的差距有多大？

No, probably not. But at the same time, I can tell you that we had a valuation that we felt comfortable starting off with. Quite frankly, we weren't comfortable when we get done through the exclusivity period. So again, it's doing the best thing we can for the company, position ourselves for strategy and also for shareholders. So we decided that we needed to step out of that. Yes, we really targeted a second quarter close. It was important to us. That's what our commitment was. But we found ourselves in a position where this is not the right thing to do for those reasons I just said.

不，大概不行。但同時我可以告訴你，我們有一個估值，我們覺得以此作為起點是可以接受的。坦白說，當我們走完獨家期（exclusivity period）之後，我們就不再覺得舒適了。所以再次強調，我們是在為公司做我們能做的最佳決定，讓我們在策略上以及對股東而言都處於更好的位置。因此我們決定需要退出那個流程。是的，我們確實以第二季完成交割為目標。這對我們很重要。那是我們的承諾。但我們發現自己處於一個狀況：基於我剛才說的那些原因，這不是正確的事。

But saying that, we are focused on moving forward with the strategy. The investment to carve it out and set it up as a separate entity within a company is going to allow us to do that in a smarter way. The leadership team, I want to give a lot of credit to our automotive leadership team that's going through that transition and a lot of people supporting them. But it's -- as you can imagine, it's emotional. This has been a long-term part of our company, okay, and it's going back to Model T and more. And so making that change is -- was not an easy emotional decision. It was an easy financial decision when you look at the factors. And with that, we're going to continue down this path and complete this key tactic in our strategy. We want to take the companies first becoming a more industrial light company.

不過話說回來，我們仍專注於推進策略。投入資源把它分拆並在公司內部設立為一個獨立實體，將使我們能以更聰明的方式做到這一點。我想高度肯定我們汽車事業的領導團隊，他們正在經歷這個轉型，也有很多人支持他們。但——如你所想——這在情感上是很強烈的。這一直是我們公司長期的一部分，好嗎，而且可以追溯到Model T甚至更早。因此做出這個改變——在情感上並不是一個容易的決定。但從財務角度看，當你考量各項因素時，這是一個容易的決定。基於此，我們將沿著這條路繼續走下去，完成這項策略中的關鍵戰術。我們希望讓公司首先成為一家更偏工業的輕型公司。

Yes. No. And I respect the emotion that's involved here. Last one for me, though, on this. Now that sale of just the light vehicle, it doesn't appear to be something that you can do in the near term. Is there any thought to adding the entirety of the vehicle business as something that would be put up for sale, given you see the cyclicality that takes place within the commercial vehicle and off-highway markets? Any thoughts on that?

是的。不。我尊重這裡面涉及的情感。不過我最後一個問題是關於這點。現在僅出售輕型車，看起來短期內不是你們能做到的事。鑑於你們看到商用車與非公路市場的週期性波動，是否有考慮把整個車輛業務都列為可能出售的標的？有任何想法嗎？

So we've -- yes. The answer is no, okay? We have put a lot of work into [matador] both organizationally and product strategy-wise and focused on making sure that we have a position where we can maintain our strong positions that are out there and grow that globally. Yes, one of the challenges of that is the cyclicality nature of those businesses, and we're going to see that for the next whatever number of quarters. But we feel very strong that -- again, I mentioned relationships that are strong, business wins that we're pleased with and that we can drive this business forward. And quite frankly, the cash flow return profile is very good. Taking that all into account, yes, a cyclicality standpoint makes it a challenge at times. But rebalancing that with more diversified industrial business opportunities, whether it's data center and growth we have directly in front of us or other inorganic opportunities that will be more freed up to be able to do without the cash constraints given by automotive business, is going to be a lot more flexibility strategically that we're going to be able to move on.

所以我們——是的。答案是否定的，好嗎？我們在[matador]上投入了大量工作，無論在組織面或產品策略面，並專注於確保我們能維持既有的強勢地位，並在全球擴張成長。是的，其中一個挑戰是這些業務的週期性特質，而我們在接下來不管多少個季度都會看到這點。但我們非常有信心——再次強調，我提到的關係很穩固、我們也對取得的業務勝利感到滿意，而且我們能推動這項業務向前。坦白說，現金流回報特性（cash flow return profile）非常好。綜合考量這些因素，從週期性角度確實有時會帶來挑戰。但透過更多元化的工業業務機會來重新平衡——不論是我們眼前直接可見的資料中心與成長，或是其他外延式（inorganic）機會；在沒有汽車業務所帶來的現金限制下，我們將更能騰出手來推進——這會在策略上帶來更大的彈性，讓我們能夠採取行動。

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

我目前沒有看到其他問題。現在我想把電話會議交回給Kathy Powers。

Thank you. Thank you all for joining us this morning. A replay of the call will be available through our website in about 2 hours. We hope you have a great day and a great weekend as well. Thanks.

謝謝。感謝各位今天早上加入我們。大約2小時後，可透過我們的網站收聽本次電話會議的重播。祝大家有美好的一天，也祝週末愉快。謝謝。

This concludes today's conference call. You may now disconnect. Have a great day.

今天的電話會議到此結束。您現在可以掛線。祝您有美好的一天。