Reliance Inc (RS) 2015 Q3 法說會逐字稿

Greetings and welcome to the Reliance Steel third-quarter 2015 financial results conference call.

您好，歡迎參加 Reliance Steel 2015 年第三季財務業績電話會議。

At this time all participants are in a listen-only mode.

此時所有參與者都處於只聽模式。

A question-and-answer session will follow the formal presentation.

正式演講後將舉行問答環節。

(Operator Instructions).

（操作員說明）。

As a reminder, this conference is being recorded.

提醒一下，本次會議正在錄製中。

I would now turn the conference over to your host, Ms. Brenda Miyamoto, Investor Relations for Reliance.

現在我將會議轉交給東道主 Reliance 投資者關係部門的 Brenda Miyamoto 女士。

Thank you, Ms. Miyamoto, you may now begin

謝謝宮本女士，現在可以開始了

Thank you Operator.

謝謝運營商。

Good morning and thanks to all of you for joining our conference call to discuss our third-quarter 2015 financial results.

早安，感謝大家參加我們的電話會議，討論我們 2015 年第三季的財務表現。

I'm joined by Gregg Mollins, our President and CEO; Karla Lewis, our Senior Executive Vice President and CFO; and our Executive Vice President of Operations, Jim Hoffman and Bill Sales.

我們的總裁兼執行長 Gregg Mollins 也加入了我的行列。 Karla Lewis，我們的資深執行副總裁兼財務長；以及我們的營運執行副總裁 Jim Hoffman 和 Bill Sales。

David Hannah, our Executive Chairman, will also be available during the question-and-answer portion of this call.

我們的執行主席大衛漢納 (David Hannah) 也將出席本次電話會議的問答部分。

A recording of this call will be posted on the Investor section of our website at Investor.

本次電話會議的錄音將發佈在我們網站「投資者」的「投資者」部分。

RSAC.com.

RSAC.com。

The press release and the information on this call contain certain forward-looking statements, which are based on a number of assumptions that are subject to change and involve known and unknown risks, uncertainties, or other factors which may not be under the company's control, which may cause the actual results, performance or achievements of the Company to be materially different than the results, performance or other expectations implied by these forward-looking statements.

新聞稿和本次電話會議的資訊包含某些前瞻性陳述，這些陳述基於許多可能發生變化的假設，並涉及已知和未知的風險、不確定性或其他可能不受公司控制的因素，這可能導致公司的實際結果、績效或成就與這些前瞻性陳述所暗示的結果、績效或其他預期有重大差異。

These factors include but are not limited to those factors disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2014, under the caption Risk Factors, and other reports filed with the Securities and Exchange Commission.

這些因素包括但不限於本公司截至2014年12月31日的10-K表年度報告中「風險因素」標題下揭露的因素，以及向美國證券交易委員會提交的其他報告。

The press release and the information on this call speak only as of today's date, and the Company disclaims any duty to update the information provided therein and herein.

新聞稿和本次電話會議中的資訊僅代表今天的情況，本公司不承擔更新其中和本文中提供的資訊的義務。

I will now turn the call over Gregg Mollins, President and CEO of Reliance.

現在我將把電話轉給 Reliance 總裁兼執行長 Gregg Mollins。

Good morning, everyone and thank you for joining us today.

大家早安，感謝您今天加入我們。

Once again, our operational performance was outstanding despite significant industry-wide challenges that continue to put pressure on metal pricing.

儘管全行業面臨的重大挑戰繼續給金屬定價帶來壓力，但我們的營運表現再次表現出色。

In particular, I am very pleased that we were able to increase our FIFO gross profit margins to 26.4%, up 70 basis points from the prior quarter and up 100 basis points from the first quarter of 2015.

我特別高興的是，我們能夠將 FIFO 毛利率提高到 26.4%，比上一季提高 70 個基點，比 2015 年第一季提高 100 個基點。

Our ability to increase our gross profit margin sequentially in each quarter of 2015 in an environment with metal pricing falling each month reflects exceptional execution by our managers in the field.

在金屬價格逐月下跌的環境下，我們能夠在 2015 年每季連續提高毛利率，這反映了我們該領域經理的卓越執行力。

Our business model focusing on smaller orders that require quick turnaround, along with providing high levels of value-added processing, coupled with our disciplined operational execution, resulted in non-GAAP earnings of $1.16 per diluted share, well ahead of our guidance range.

我們的業務模式專注於需要快速週轉的小訂單，並提供高水準的增值處理，再加上我們嚴格的營運執行，導致非公認會計準則每股攤薄收益為1.16 美元，遠高於我們的指導範圍。

Overall customer demand remained relatively strong with our tons sold per day increasing sequentially each month of the quarter.

整體客戶需求仍然相對強勁，本季每個月的每日銷售量都在持續增加。

The typical seasonal trend is for the third quarter volume to decline 3% to 5% from the second quarter.

典型的季節性趨勢是第三季的銷售量比第二季下降 3% 至 5%。

However, in line with our expectations, our third quarter tons sold were down only 1.5% from the second quarter and once again, we outperformed the industry with the MSCI average down 2.9%.

然而，與我們的預期一致，我們第三季的銷量僅比第二季度下降了 1.5%，我們的表現再次優於行業，MSCI 平均水平下降了 2.9%。

Although we sent some hesitation in the market at this time, mainly due to recent announcements about slower growth in China, resulting in even further downward pressure on metal pricings, we believe customer demand across our business is relatively healthy outside of the energy industry.

儘管我們此時在市場上表現出一些猶豫，主要是由於最近宣布中國經濟成長放緩，導致金屬價格進一步下行，但我們相信，除能源產業之外，我們業務的客戶需求相對健康。

We continue to increase our market share by providing high levels of customer service as well as investing in our people and our businesses we have made and will continue to make significant investments in our businesses that perform toll processing work for the auto industry as this is highly profitable for us and we have no metal price risk.

我們透過提供高水準的客戶服務以及對我們的員工和業務進行投資來繼續增加我們的市場份額，並將繼續對我們為汽車行業進行來料加工工作的業務進行大量投資，因為這是高度對我們來說有利可圖，而且我們沒有金屬價格風險。

Our primary growth relative to the auto industry in the US has been due to the increased aluminum usage in autos and truck, which we believe will continue.

我們相對於美國汽車產業的主要成長是由於汽車和卡車中鋁用量的增加，我們相信這種情況將持續下去。

Reliance is very well positioned to further grow our participation in this area.

Reliance 完全有能力進一步擴大我們在這一領域的參與。

We have also increased our presence in aerospace distribution through an acquisition in August of 2014 as well as opening new facilities for our companies serving this market.

我們也透過 2014 年 8 月的收購擴大了我們在航空航太分銷領域的影響力，並為我們服務於該市場的公司開設了新設施。

These investments have expanded and strengthened our ability to service our Aerospace customers on a global basis, and we anticipate continued growth in the aerospace market.

這些投資擴大並加強了我們在全球範圍內為航空航太客戶提供服務的能力，我們預計航空航太市場將持續成長。

Our business model positions us well to increase our market share in the current environment as our customers typically place orders for smaller quantities on a more frequent basis when metal prices are declining.

我們的業務模式使我們能夠在當前環境下提高市場份額，因為當金屬價格下跌時，我們的客戶通常會更頻繁地下小批量訂單。

This is Reliance's sweet spot as our decentralize the structure allows us to respond to small quick turnaround orders.

這是 Reliance 的最佳點，因為我們的分散結構使我們能夠響應小型快速週轉訂單。

Demand for our products was in line with our expectations for the quarter.

我們產品的需求符合我們對本季的預期。

But we face significant headwinds from continued pricing pressure across all the metals we sell with the exception of aerospace play.

但我們銷售的所有金屬（航空航天除外）持續面臨價格壓力，這給我們帶來了巨大的阻力。

Going into the quarter, we had expected prices to be stable to up slightly, however, conditions softened even further and as a result, our average selling price per ton sold was down 4.4% compared to the prior quarter and 12.7% compared to the third quarter of 2014.

進入本季度，我們預計價格將穩定至小幅上漲，然而，情況進一步疲軟，因此，我們每噸銷售的平均售價比上一季度下降了 4.4%，比第三季度下降了 12.7% 2014 年第四季度。

Given the weak global economy and strong US dollar, imports continued to flood the US market and raw material costs continued to fall.

在全球經濟疲軟和美元走強的情況下，進口持續湧入美國市場，原物料成本持續下降。

So far in the fourth quarter, domestic metal pricing has continued to decline.

第四季至今，國內金屬定價持續下滑。

At this time, we do not see any meaningful near-term catalyst to change the direction of pricing.

目前，我們沒有看到任何有意義的短期催化劑來改變定價方向。

That said, we remain highly focused on managing all aspects of the business that are within our control, which continues to offset much of the impact on our profitability from the weak pricing environment.

也就是說，我們仍然高度專注於管理我們控制範圍內的業務的各個方面，這繼續抵消了疲軟的定價環境對我們獲利能力的大部分影響。

During 2015, we have made a concerted effort to lower inventory levels, and I am pleased to report that year-to-date we have decreased our FIFO inventory by $239.8 million including a $120.5 million during the third quarter.

2015 年，我們齊心協力降低庫存水平，我很高興地報告，今年迄今為止，我們的 FIFO 庫存減少了 2.398 億美元，其中第三季度減少了 1.205 億美元。

Inventory turns, a key area focus for Reliance, improved to 4.7 times based on our FIFO inventory tons on-hand at September 30, 2015.

根據我們截至 2015 年 9 月 30 日的先進先出庫存噸數，Reliance 的重點關注領域——庫存週轉率提高至 4.7 倍。

And our first nine months of 2015 shipment levels which is near our company-wide goal of 4.75 times.

我們 2015 年頭 9 個月的出貨量水準接近我們全公司目標的 4.75 倍。

Not only did this provide cash that we used to reduce our debt by $106.1 million and to repurchase $142.3 million of our stock, I also believe that our improved inventory position contributed to our increased gross profit margins.

這不僅為我們提供了現金，用於減少 1.061 億美元的債務併回購 1.423 億美元的股票，而且我還相信，我們庫存狀況的改善有助於提高毛利率。

I'd like to personally thank all of our employees who helped achieve these results.

我個人要感謝所有幫助實現這些成果的員工。

Another example of our focus on the controllable aspects of our business is our effective expense management.

我們注重業務可控方面的另一個例子是我們有效的費用管理。

Over the years, Reliance has consistently demonstrated our ability to quickly respond to changing market factors.

多年來，Reliance 不斷證明我們有能力快速回應不斷變化的市場因素。

We started to reduce expenses and inventory at our businesses that focus on the energy market when we first began to sense a slow-down towards the end of 2014.

當我們在 2014 年底首次感覺到經濟放緩時，我們開始減少專注於能源市場的業務的開支和庫存。

Because of these quick reactions, our energy-focused businesses as a whole were profitable for the nine-month period ended September 30, 2015.

由於這些快速反應，我們以能源為重點的業務在截至 2015 年 9 月 30 日的 9 個月期間整體實現了盈利。

During the period when our volumes in these businesses decreased over 40%.

在此期間，我們這些業務的銷量下降了 40% 以上。

The only way to achieve this is by attacks your costs quickly.

實現這一目標的唯一方法是快速降低成本。

In line with our quick reactions to changing market conditions, we recorded an impairment and restructuring charge of $55.5 million during the quarter, given our updated outlook that oil prices remained depressed for longer than we had previously anticipated which is expected to reduce both volume and profitability of our energy businesses.

根據我們對不斷變化的市場狀況的快速反應，我們在本季度記錄了5,550 萬美元的減值和重組費用，因為我們最新的展望是，油價持續低迷的時間比我們之前預期的要長，預計這將減少銷售量和獲利能力我們的能源業務。

This charge includes closing a few of our locations.

這筆費用包括關閉我們的一些地點。

While we regret any hardships this may cause on our employees, we believe these are necessary actions to enhance our overall operating efficiencies and long-term profitability.

雖然我們對這可能對我們的員工造成的任何困難感到遺憾，但我們相信這些是提高我們整體營運效率和長期盈利能力的必要行動。

We will continue to be vigilant in assessing energy and market demand trends and we'll take further actions as necessary.

我們將繼續保持警惕，評估能源和市場需求趨勢，並根據需要採取進一步行動。

In the third quarter last year, we completed the acquisition of northern Illinois steel supply and All Metal Services, followed by the fourth quarter 2014 acquisition of Fox Metals and Alloys.

去年第三季度，我們完成了對北伊利諾伊州鋼鐵供應和 All Metal Services 的收購，隨後在 2014 年第四季度完成了對 Fox Metals and Alloys 的收購。

These acquisitions contributed it our third quarter 2015 consolidated net sales of $2.29 billion.

這些收購為我們 2015 年第三季的綜合淨銷售額貢獻了 22.9 億美元。

In total, we sold $1.49 million tons of metal during the third quarter of 2015.

2015 年第三季度，我們總共銷售了 149 萬噸金屬。

While we have not completed any acquisitions so far in 2015, we continue to see and evaluate many tunes.

雖然 2015 年迄今我們尚未完成任何收購，但我們仍在繼續觀察和評估許多歌曲。

Reliance is required -- regarded as the acquirers of choice throughout our industry and M&A remains as integral part of our overall growth strategy.

依賴是必需的－被視為整個產業的首選收購者，而併購仍是我們整體成長策略不可或缺的一部分。

We expect to continue to be a consolidator in our highly fragmented industry by making strategic acquisitions of well-managed metal service centers and processers with end market exposure that is support our diversification strategy.

我們希望透過策略性收購管理良好的金屬服務中心和加工商，繼續成為高度分散產業的整合者，這些中心和加工商擁有終端市場曝險，支持我們的多元化策略。

To sum up the quarter, I'm extremely proud of our performance.

總結本季度，我對我們的表現感到非常自豪。

We increased our FIFO gross profit margins to $26.4%.

我們將 FIFO 毛利率提高至 26.4%。

We reduced our inventory by $120.5 million.

我們的庫存減少了 1.205 億美元。

Our cash flow from operations was $252.4 million.

我們的營運現金流為 2.524 億美元。

We paid down $106.1 million of debt and we repurchased $142.3 million of our common stock.

我們償還了 1.061 億美元的債務，並回購了 1.423 億美元的普通股。

We have a very experienced team at Reliance that again achieved industry-leading operating results in a very difficult environment.

Reliance 擁有一支經驗豐富的團隊，在非常困難的環境中再次取得了領先業界的經營績效。

Our strong performance improved our balance sheet and liquidity position which provides a strong foundation for us to continue to grow our business through M&A and organic initiatives while at the same time deleveraging our balance sheet and returning value to our shareholders through dividends and opportunistic share repurchases.

我們的強勁業績改善了我們的資產負債表和流動性狀況，這為我們透過併購和有機措施繼續發展業務奠定了堅實的基礎，同時降低了我們的資產負債表槓桿，並透過股息和機會性股票回購為股東回報了價值。

I thank all of our employees, customers, suppliers, and shareholders for our success, and I remain confident in our ability to continue our track record of success going forward.

我感謝所有員工、客戶、供應商和股東為我們帶來的成功，我對我們繼續保持成功記錄的能力充滿信心。

We'll now hand the call over to Jim to comment further on operations and market conditions.

我們現在將把電話轉給吉姆，以進一步評論營運和市場狀況。

Jim?

吉姆？

Thanks, Gregg.

謝謝，格雷格。

And good morning, everyone.

大家早安。

I'm going to speak mainly about pricing and demand for our carbon steel and alloy products as well as our outlook on certain key markets we sell those products into.

我將主要談論我們碳鋼和合金產品的定價和需求，以及我們對銷售這些產品的某些關鍵市場的前景。

Bill will then address our aluminum and stainless steel markets.

然後，比爾將談到我們的鋁和不銹鋼市場。

I would like to echo Gregg's comments about how proud we are of our operational execution during the quarter.

我想贊同格雷格的評論，即我們對本季的營運執行感到非常自豪。

First I will comment on several of our key end markets.

首先，我將評論我們的幾個關鍵終端市場。

Automotive that we service mainly through our toll processing operations in the US and Mexico has shown consistent strength throughout 2015 and we expect that trend to continue.

我們主要透過美國和墨西哥的來料加工業務提供服務的汽車在 2015 年表現出一致的實力，我們預計這一趨勢將持續下去。

Our growth in this end market in the US has outpaced the general industry growth primarily due to incremental processing volume from increased aluminum usage in the automotive market.

我們在美國終端市場的成長超過了整個產業的成長，這主要是由於汽車市場鋁用量的增加導致加工量的增加。

This is new business for us, made possible by our expertise in hard-to-do processing as well as our ability to make significant investments in new equipment and facilities to support this growth.

這對我們來說是一項新業務，得益於我們在難加工加工方面的專業知識以及我們對新設備和設施進行大量投資以支持這一增長的能力。

Even though we are just ramping up for this new business, we have already processed double the amount of aluminum we processed last year at our toll processing operations.

儘管我們剛開始開展這項新業務，但我們在來料加工業務中加工的鋁量已經是去年的兩倍。

And as we discussed on prior calls, we are breaking ground on a new facility in Mexico to expand our existing toll processing capacity to support the increased automotive activity in that area.

正如我們在之前的電話中討論的那樣，我們正在墨西哥破土動工建設一家新工廠，以擴大我們現有的收費處理能力，以支持該地區日益增長的汽車活動。

We expect this facility to be operational by mid 2016.

我們預計該設施將於 2016 年中期投入營運。

As a reminder, our toll processing operations are not impacted by metals pricing.

提醒一下，我們的來料加工業務不受金屬定價的影響。

As we process the metal for a fee without taking ownership of the metal.

因為我們在不取得金屬所有權的情況下收取費用加工金屬。

This provides consistent returns, and although toll processing represents a small portion of our total sales dollars, it represents a larger percentage of our profitability.

這提供了一致的回報，雖然來料加工只占我們總銷售額的一小部分，但它代表了我們獲利能力的較大比例。

That's why we are so excited about this growth.

這就是為什麼我們對這種增長如此興奮。

Moving on into heavy industry which includes railcar, truck trailer, ship building, barge manufacturing, tank manufacturing and wind and transmission towers, demand for this quarter remained fairly steady with the prior quarter.

進入重工業領域，包括軌道車、卡車拖車、造船、駁船製造、儲槽製造以及風力和輸電塔，本季的需求與上一季相比保持相當穩定。

Our exposure to heavy equipment also includes sales into the agriculture equipment market which has weakened recently but has not impacted us the same -- to the same extent as our OEMs.

我們對重型設備的投資還包括農業設備市場的銷售，該市場最近有所減弱，但對我們的影響並不像我們的原始設備製造商那麼大。

On a positive note, demand in the construction equipment market is trending up.

從正面的方面來看，建築設備市場的需求呈上升趨勢。

Non-residential construction is our largest end market and although we have been experiencing continued moderate improvement in demand over the course of the year, our volume remains well below the peak levels.

非住宅建築是我們最大的終端市場，儘管我們在這一年中需求持續適度改善，但我們的銷售量仍遠低於峰值。

We expect positive growth in 2016 with the potential of some pullback activity during the fourth quarter of 2015.

我們預計 2016 年將出現正成長，但 2015 年第四季可能會出現一些回落。

We have made strategic investments in our businesses servicing this space since 2009, rather than scaling back or closing facilities as we believe this market for us will eventually return to prerecession levels.

自 2009 年以來，我們對為該領域提供服務的業務進行了戰略投資，而不是縮減或關閉設施，因為我們相信這個市場最終將恢復到經濟衰退前的水平。

Our investments include processing equipment that will enable us to provide a higher level of value-added processing to our customers as their volumes increase, which can easily be absorbed in our existing cost structure.

我們的投資包括加工設備，隨著客戶產量的增加，這些設備將使我們能夠為客戶提供更高水準的增值加工，這可以輕鬆吸收到我們現有的成本結構中。

Turning to energy, that being oil and natural gas.

說到能源，那就是石油和天然氣。

Our third quarter volumes sold and our businesses servicing the energy market actually increased a bit from the prior quarter, mainly due to normal seasonal patterns in certain of our markets where we sell heavier products.

我們第三季的銷售量和為能源市場提供服務的業務實際上比上一季增加，這主要是由於我們銷售較重產品的某些市場的正常季節性模式。

Compared to the third quarter of 2014, our volumes were down 44%.

與 2014 年第三季相比，我們的銷量下降了 44%。

In our opinion, the overall energy market deteriorated further in the third quarter from the second quarter which continued downward pressure on both pricing and activity levels due to low oil prices and the related reduction in drilling activities.

我們認為，第三季整體能源市場較第二季進一步惡化，由於低油價和相關鑽探活動的減少，定價和活動水準持續面臨下行壓力。

Because our managers in the field reacted quickly and have continued to cut expenses throughout the year, mainly through head count reductions, our energy businesses as a whole are profitable for the nine months ended September 30, 2015.

由於我們的現場管理人員反應迅速，全年持續削減開支（主要是透過裁員），因此我們的能源業務在截至 2015 年 9 月 30 日的 9 個月內整體實現盈利。

However, pretax income for these businesses was down about 80% or $67 million compared to the same nine-month period of 2014.

然而，與 2014 年同期 9 個月相比，這些企業的稅前收入下降了約 80%，即 6,700 萬美元。

We have reduced head count at our businesses servicing the energy market by one-third or approximately 400 people.

我們將能源市場服務業務的員工人數減少了三分之一，約 400 人。

With our operating expense run rate for these businesses, now approximately 38% lower than it was at the end of last year.

我們這些業務的營運費用運行率現在比去年年底低約 38%。

Our updated outlook, however, assumes that oil prices will remain low for longer than we had previously expected which resulted in our decision to close a few of our underperforming locations that are solely dependent on energy customers.

然而，我們更新的展望假設油價將保持低位的時間比我們之前預期的更長，這導致我們決定關閉一些完全依賴能源客戶、表現不佳的工廠。

Turning now to carbon steel.

現在轉向碳鋼。

Prices continue to be under a great deal of pressure in the third quarter, mainly due to continued record high import levels in the marketplace as well as a rapid decline in raw material prices, a strong US dollar, a soft global economy, including a weakening Chinese market and high inventory levels throughout the supply chain.

第三季價格持續承受較大壓力，主要是由於市場進口水準持續創歷史新高以及原物料價格快速下跌、美元走強、全球經濟疲軟，包括疲軟的全球經濟中國市場和整個供應鏈的庫存水準很高。

However, in this environment, we are once again able to increase our FIFO gross profit margins on sales of carbon steel products in 2015 third quarter as compared to both the 2015 second quarter and 2014 third quarter.

然而，在這種環境下，與2015年第二季和2014年第三季相比，我們能夠再次提高2015年第三季碳鋼產品銷售的先進先出毛利率。

The increased gross profit margin dollars from our carbon steel operations largely offset our pretax income losses from our energy-focused business reflecting the importance of Reliance's diversification strategy.

我們碳鋼業務的毛利率增加在很大程度上抵消了我們以能源為重點的業務的稅前收入損失，反映出信實多元化策略的重要性。

[Blake] represents the largest portion of our product mix followed by carbon steel structural, bars and tubing.

[Blake] 代表了我們產品組合的最大部分，其次是碳鋼結構鋼、棒材和管材。

Therefore our results are more impacted by pricing on these products versus carbon flat rolled products which represent only 15% of our total sales with hot rolled at 7%.

因此，我們的業績更容易受到這些產品定價的影響，而碳扁材產品僅占我們總銷售額的 15%，熱軋產品佔 7%。

Flat rolled pricing has been under pressure for over a year now with mills down over 30% since the beginning of 2015.

一年多來，扁材價格一直面臨壓力，自 2015 年初以來，鋼廠價格下跌了 30% 以上。

Although plate demand remains fairly healthy, pricing for plate products has declined significantly, down over 40% from the beginning of 2015 and we expect further pressure for the balance of the year.

儘管中厚板需求依然相當健康，但中厚板產品的價格已大幅下降，較 2015 年初下降了 40% 以上，我們預計今年剩餘時間將面臨進一步壓力。

Base prices for alloy prices, a majority of which are sold into our emergency market, has held up well considering the significant reduction in demand.

考慮到需求的大幅減少，合金價格的基本價格（其中大部分銷往我們的緊急市場）一直保持良好。

Going forward we expect prices for these products to remain fairly steady with current levels, due to in large part to the product going into the automotive market.

展望未來，我們預計這些產品的價格將在當前水準上保持相當穩定，這在很大程度上是由於產品進入了汽車市場。

I will now turn the call over to Bill for comments on our non-ferrous markets.

我現在將把電話轉給比爾，請他對我們的有色金屬市場發表評論。

Thanks, Jim.

謝謝，吉姆。

Good morning, everyone.

大家，早安。

The aerospace market continues to represent one of our strongest end markets from a demand perspective.

從需求角度來看，航空航太市場仍然是我們最強大的終端市場之一。

With our same store tons sold up 7.6% in the nine months ending September 30, 2015.

截至 2015 年 9 月 30 日的九個月內，我們同一家商店的銷量成長了 7.6%。

We remain very bullish on the aerospace markets as build rates in the commercial air plane market continue to grow.

隨著商用飛機市場的建造率持續成長，我們仍然非常看好航空航太市場。

As Gregg mentioned, we've increased our aerospace presence in new geographies through our acquisition of All Metal Services headquartered in the UK in August of 2014 as well as opening two new AMI metals facilities in France and turkey in the first quarter of 2015.

正如 Gregg 所提到的，我們透過 2014 年 8 月收購總部位於英國的 All Metal Services 以及 2015 年第一季度在法國和土耳其開設兩家新的 AMI 金屬工廠，增強了我們在新地區的航空航太業務。

Sales to the aerospace market have increased as a percentage of our total sales.

航空航太市場的銷售額占我們總銷售額的百分比增加。

Now representing nearly 10% in the third quarter of 2015.

目前佔 2015 年第三季的近 10%。

We believe Reliance remains very well positioned to gain market share in this area on a global basis.

我們相信 Reliance 仍然處於有利地位，能夠在全球範圍內獲得該領域的市場份額。

Earlier this week, we announced that we were awarded the contract for aluminum flat roll product to be supplied to the F35 joint strike fighter program.

本週早些時候，我們宣布獲得了為 F35 聯合攻擊戰鬥機項目供應鋁扁捲產品的合約。

This contract runs from 2017 through 2021 and is estimated at $300 million.

該合約有效期為 2017 年至 2021 年，預計價值 3 億美元。

The majority of the products that we sell to the aerospace market are heat treated aluminum products, specially plate, as well as specialty stainless steel and titanium products.

我們銷往航空航太市場的大部分產品是熱處理鋁產品，特別是板材，以及特殊不銹鋼和鈦產品。

Given stronger demand, aluminum plate has increased with two pricing increases announced this year.

有鑑於需求強勁，鋁板價格上漲，今年宣布兩度漲價。

Lead times for the domestic suppliers of aerospace plate have moved from the 24 to 28 weeks reported last quarter to a controlled order entry process.

國內航空航太板材供應商的交貨時間已從上季報告的 24 週縮短至 28 週，轉而採用受控訂單輸入流程。

Lead times for the nondomestic suppliers are currently in the 24 to 28-week timeframe and we believe they too are moving toward a controlled order entry process.

目前，非國內供應商的交貨時間為 24 至 28 週，我們相信他們也正在走向受控的訂單輸入流程。

Both price increases announced this year have held and the product is in tight supply.

今年宣布的兩次漲價均有效，且產品供應緊張。

Our sales of common alloy aluminum remain consistent from a volume standpoint with most of our product being sold to sheet metal fabricators that support a variety of end markets.

從數量的角度來看，我們的普通合金鋁的銷售保持一致，我們的大部分產品都出售給支援各種終端市場的鈑金製造商。

Demand on general engineering aluminum plate remains solid with domestic lead times around 20 to 25 weeks, yet pricing remains challenged, especially with ongoing aggressive import pricing.

通用工程鋁板的需求仍然強勁，國內交貨時間約為 20 至 25 週，但定價仍面臨挑戰，特別是進口定價持續激進。

Demand for semiconductor plate has been strong and is expected to remain steady for the balance of the year.

半導體板塊的需求一直強勁，預計今年剩餘時間將保持穩定。

Pricing on common alloy aluminum sheet follows ingot, and has deteriorated from prior year levels due to increase imports as well as a significant reduction in the Midwest premium.

普通合金鋁板的價格跟隨鑄錠定價，由於進口增加以及中西部溢價大幅下降，價格較去年水準惡化。

Midwest spot ingot has been trading in the $0.75 to $0.80 per pound range, down from the $1.6 per pound in January.

中西部現貨鋼錠交易價格為每磅 0.75 美元至 0.80 美元，低於 1 月的每磅 1.6 美元。

The Midwest premium was at historically higher levels for longer than we had anticipated but it's has now decreased about $0.17 per point since the beginning of the year.

中西部溢價處於歷史較高水平的時間比我們預期的要長，但自今年年初以來，目前已下降約 0.17 美元/點。

Outside of the energy market, demand for stainless steel products has continued to be good December spite challenge being pricing with primarily related to stainless flat rolled.

在能源市場之外，儘管主要與不銹鋼扁材相關的定價面臨挑戰，但 12 月不銹鋼產品的需求仍然良好。

We sell a suggest amount of stainless steel flat markets into the kitchen equipment, appliance and construction end markets.

我們將建議數量的不銹鋼平板市場銷售到廚房設備、器具和建築終端市場。

Lead times are about three to four weeks and we expect pricing pressures to continue for that product, in particular given the excess inventory in the supply chain.

交貨時間約為三到四個星期，我們預計該產品的定價壓力將持續，特別是考慮到供應鏈中的庫存過剩。

That said, stainless steel bar which represents about 30% of our stainless steel volume remains more profitable for us.

也就是說，占我們不銹鋼產量約 30% 的不銹鋼棒材對我們來說仍然更有利可圖。

Pricing for flat rolled stainless steel products has declined more than any other product in 2015 with September pricing down about 40% from the beginning of the year.

2015 年，不鏽鋼扁材產品的價格降幅超過其他任何產品，其中 9 月的價格較年初下降了約 40%。

Pricing for these products is heavily impacted by nickel prices which began the year at $7.37 per pound and is currently down $2.79 per pound to pound to $4.58 per pound for October.

這些產品的定價受到鎳價的嚴重影響，年初鎳價為每磅 7.37 美元，目前已下跌 2.79 美元每磅，至 10 月為每磅 4.58 美元。

As an example, surcharges for 304 stainless have fallen from $0.76 per pound in January to $0.42 per pound in October.

例如，304 不鏽鋼的附加費已從 1 月的每磅 0.76 美元降至 10 月的每磅 0.42 美元。

In addition, base prices have dropped by a few discount points due to a heavy influx of import products.

此外，由於進口產品大量湧入，基礎價格也下降了幾個折扣點。

We expect prices for stainless steel products to remain under pressure for the remainder of 2015 and into 2016.

我們預計 2015 年剩餘時間和 2016 年不銹鋼產品價格仍將面臨壓力。

That being said, our managers in the aluminum and stainless steel portions of our business have increased their gross profit margins during a very volatile pricing environment and managed their expenses well.

話雖如此，我們鋁和不銹鋼業務部門的經理在非常不穩定的定價環境中提高了毛利率，並很好地管理了開支。

We applaud them for their performance.

我們為他們的表現鼓掌。

I'll now turn the call over to Karla to review our third quarter financial results.

我現在將把電話轉給卡拉，以審查我們第三季的財務表現。

Thanks, Bill and good morning, everyone.

謝謝比爾，大家早安。

Our sales in the third quarter of 2015 were down $419 million or 15.5% from the third quarter of 2014 and down $137.5 million or 5.7% from the second quarter of 2015.

我們 2015 年第三季的銷售額比 2014 年第三季下降了 4.19 億美元，成長 15.5%，比 2015 年第二季下降了 1.375 億美元，成長 5.7%。

The majority of this decline was due to lower prices resulting from the market conditions discussed earlier.

下降的主要原因是前面討論的市場狀況導致價格下降。

Our same-storm average selling price has declined sequentially in each month beginning in September, 2014 with our September 2015 same-store average selling price down $292 per ton or 16.8% from our September 2014 average selling price.

從 2014 年 9 月開始，我們的同場平均售價逐月連續下降，2015 年 9 月同店平均售價每噸下降 292 美元，比 2014 年 9 月平均售價下降 16.8%。

And based on our 2015 third quarter tons sold, this equates to a loss of nearly $400 million in quarterly sales or $1.6 billion per year due solely to the impact of metals pricing.

根據我們 2015 年第三季的銷售噸數，這相當於季度銷售額損失近 4 億美元，即每年僅因金屬定價的影響就損失 16 億美元。

Because metal prices declined more than we had anticipated, in the 2015 third quarter, as compared to the 2015 second quarter, we increased our estimate of our annual LIFO inventory valuation adjustment to income of $100 million compared to our prior estimate of $80 million.

由於金屬價格的跌幅超出了我們的預期，因此與2015 年第二季相比，2015 年第三季我們將年度LIFO 庫存估值調整的預期提高至1 億美元，而先前的預期為8,000 萬美元。

This resulted in the LIFO credit or income of $75 million for the nine months ended September 30 with $35 million or $0.29 earnings per diluted shares included in our cost of sales in the 2015 third quarter, compared to our projected amount of $20 million or $0.17 earnings per diluted share.

這導致截至9 月30 日的9 個月的後進先出信用或收入為7500 萬美元，其中3500 萬美元或稀釋後每股收益0.29 美元計入我們2015 年第三季度的銷售成本，而我們的預計金額為2000 萬美元或0.17 美元收益每稀釋股。

We recorded LIFO of $0.27 per diluted share in the 2015 second quarter.

2015 年第二季度，我們記錄的後進先出法為攤薄後每股 0.27 美元。

In the 2014 third quarter, when metals prices were generally rising, we recorded a LIFO charge or expense of $20 million or $0.16 per diluted share.

2014 年第三季度，當金屬價格普遍上漲時，我們記錄了 2,000 萬美元的後進先出費用或費用，即稀釋後每股 0.16 美元。

This adjustment reflects LIFO accounting working in the manner intended, reducing FIFO cost of sales in a declining cost environment to value inventory at current replacement costs.

這項調整反映了後進先出會計以預期的方式運作，在成本下降的環境中降低了先進先出的銷售成本，以當前的重置成本對庫存進行評估。

Our 2015 third quarter gross profit margin of $27.9% increased from 25.1% in the 2014 third quarter and 27.1% in the 2015 second quarter.

我們 2015 年第三季的毛利率為 27.9%，高於 2014 年第三季的 25.1% 和 2015 年第二季的 27.1%。

Our increased LIFO income contributed to our increased gross profit margin.

我們增加的後進先出收入有助於我們增加毛利率。

On a FIFO basis, our gross profit margin during the quarter increased exceeding our expectations especially in light of declining prices.

在先進先出的基礎上，我們本季的毛利率成長超出了我們的預期，特別是考慮到價格下降。

Given the competitive market and lower prices, we had anticipated that our gross profit margins would remain relatively consistent with the prior quarter with some potential for downward pressure.

鑑於競爭激烈的市場和較低的價格，我們預計我們的毛利率將與上一季保持相對一致，並存在一定的下行壓力。

However, as highlighted previously, our teams in the field did a great job of maintaining and increasing our gross profit margin.

然而，正如前面所強調的，我們的現場團隊在維持和提高毛利率方面做得很好。

Our 2015 third quarter SG&A expenses decreased $44 million from the 2014 third quarter and $12 million from the 2015 second quarter, primarily due to effective costs control throughout the company including reductions in workforce at our businesses servicing the energy end market.

我們2015 年第三季的SG&A 費用比2014 年第三季減少了4,400 萬美元，比2015 年第二季減少了1,200 萬美元，這主要是由於整個公司有效的成本控制，包括減少了為能源終端市場服務的業務的勞動力。

Company-wide, our head count at September 30 was down 3.7% or 550 people, compared to January 1 on a 1.7% decline in tons sold.

截至 9 月 30 日，全公司員工人數比 1 月 1 日減少了 3.7%，即 550 人，銷售量下降了 1.7%。

As a percent of sales, our SG&A expenses were 18.8%, compared to 17.5% in the 2014 third quarter and 18.2% in the 2015 second quarter.

我們的銷售、管理及行政費用佔銷售額的百分比為 18.8%，而 2014 年第三季為 17.5%，2015 年第二季為 18.2%。

And the increase as a percent of sales was impacted mainly by lower selling prices in the 2015 third quarter.

佔銷售額百分比的成長主要受到 2015 年第三季銷售價格下降的影響。

As individual markets change, we will continue to remain disciplined in our effort to adjust our variable expenses such as personnel costs which represent about 60% to 65% of our SG&A expenses.

隨著個別市場的變化，我們將繼續努力調整我們的變動費用，例如占我們 SG&A 費用約 60% 至 65% 的人員成本。

We're proud of our quick reaction to the significant decline in sales volumes to the energy market.

我們對能源市場銷售量大幅下降的快速反應感到自豪。

Our non-gap pretax income of $133.2 million was lower than in both the 2013 third quarter and the 2015 second quarter.

我們的非缺口稅前收入為 1.332 億美元，低於 2013 年第三季和 2015 年第二季。

However our third quarter non-GAAP pretax income margin of 5.8% improved from 5.4% in the 2014 third quarter at 5.6% in the 2015 second quarter.

然而，我們第三季非 GAAP 稅前利潤率為 5.8%，從 2014 年第三季的 5.4% 提高到 2015 年第二季的 5.6%。

Again, this improvement was only possible because of our excellentoperational execution across all controllable aspects of our business in a very challenging environment.

同樣，這種改進之所以成為可能，是因為我們在非常具有挑戰性的環境中在業務的所有可控方面都表現出色的營運執行力。

Our effective income tax rate for the quarter was 32.1%, compared to 25.7% in the 2014 third quarter when we benefited from the resolution of certain tax matters and 32.6% in the 2015 second quarter.

我們本季的有效所得稅率為 32.1%，而 2014 年第三季我們受惠於某些稅務問題的解決，有效所得稅率為 25.7%，2015 年第二季為 32.6%。

The nine-month periods, our effective rate of in 2015 was 32.1%, compared to 32.5% in the 2014 period, down slightly as we are benefiting from lower tax rates in certain states and foreign jurisdictions.

在 2015 年的 9 個月期間，我們的有效稅率為 32.1%，而 2014 年期間為 32.5%，略有下降，因為我們受益於某些州和外國司法管轄區的較低稅率。

And we currently expect that our full-year 2015 effective income tax rate will be in the range of 32% to 33%.

我們目前預計2015年全年有效所得稅稅率將介於32%至33%之間。

As Gregg and Jim both mentioned, we recorded a pretax impairment and restructuring charge of $55.5 million or $0.47 earnings per diluted share in the third quarter of 2015.

正如 Gregg 和 Jim 所提到的，我們在 2015 年第三季記錄了 5,550 萬美元的稅前減損和重組費用，即稀釋後每股收益 0.47 美元。

This includes charges directly related to the planned closure of certain energy-related businesses where we anticipate losses on the disposition of certain assets.

這包括與計劃關閉某些能源相關業務直接相關的費用，我們預計某些資產的處置會造成損失。

In addition, we recorded charges for the write-down of intangibles due to the loss of customers and low future earnings expectations for certain of our operations servicing the energy market.

此外，由於客戶流失以及我們為能源市場提供服務的某些業務的未來盈利預期較低，我們記錄了無形資產減記費用。

These charges are presented in our table of non-GAAP net income and earnings per share amounts in our press release issued earlier today.

這些費用列在我們今天稍早發布的新聞稿中的非公認會計準則淨利潤和每股盈餘表中。

We expect the positive impact on our future earnings due to the closure of the identified locations that were operating below our company-wide pretax income levels as well as lower amortization expense from a portion of the intangible write-downs.

我們預計，由於關閉了低於全公司稅前收入水準的已確定地點，以及部分無形資產減記帶來的攤銷費用降低，這將對我們的未來收益產生積極影響。

As always, we will continue to monitor performance at all of our businesses, not just those servicing the energy market and take appropriate actions as warranted.

一如既往，我們將繼續監控所有業務的績效，而不僅僅是那些為能源市場提供服務的業務，並根據需要採取適當的行動。

Net income attributable to reliance for the 2015 third quarter was $51.4 million or $0.69 per diluted share as compared to net income of $95.5 million or $1.21 per diluted share in the 2014 third quarter.

2015 年第三季可歸因於信賴的淨利潤為 5,140 萬美元，即稀釋後每股收益 0.69 美元，而 2014 年第三季淨利為 9,550 萬美元，即稀釋後每股收益 1.21 美元。

We believe our non-GAAP net income of $85.5 million or $1.16 per diluted share is a better reflection of our performance in the quarter.

我們認為，我們的非 GAAP 淨利潤 8,550 萬美元或稀釋後每股 1.16 美元更好地反映了我們本季的業績。

We generated $252.4 million of cash from operations during the 2015 third quarter resulting in $716.3 million in cash from operations for the nine months ended September 30.

2015 年第三季度，我們從營運中產生了 2.524 億美元的現金，截至 9 月 30 日的九個月中，我們從營運中產生了 7.163 億美元的現金。

We're very proud of our ability to generate such strong cash flow in the current market which demonstrates the counter cyclical nature of our working capital needs.

我們對在當前市場上產生如此強勁的現金流的能力感到非常自豪，這證明了我們營運資金需求的反週期性質。

Our cash generation was greatly enhanced by our efforts to drive down inventory levels during the year with an inventory reduction of $120.5 million in the third quarter and $239.8 million in the first nine months of 2015.

我們努力降低庫存水平，從而大大提高了我們的現金產生能力，2015 年第三季庫存減少了 1.205 億美元，2015 年前 9 個月庫存減少了 2.398 億美元。

On the working capital front, we continue to manage our receivables well would our Accounts Receivable Days Sales Outstanding rate at September 30, 2015 of 42.3 days in line with our historical range.

在營運資金方面，我們將繼續妥善管理我們的應收帳款，截至 2015 年 9 月 30 日，我們的應收帳款週轉天數為 42.3 天，與我們的歷史範圍一致。

Our inventory turn rate at September 30 improved to 3.9 times based on dollars and 4.4 times or 2.7 months on hand based on tons.

截至 9 月 30 日，我們的庫存週轉率（以美元計算）提高至 3.9 倍，以噸計算現有庫存週轉率提高至 4.4 倍或 2.7 個月。

Given our significant inventory reductions during the year, we would like to point out that our tons based turn rate calculated on our September 30 an inventory levels and year-to-date shipment levels would be 4.7 times, very close to our goal of 4.75 times.

鑑於我們今年庫存大幅減少，我們想指出的是，根據 9 月 30 日的庫存水準和年初至今的出貨水準計算，我們的噸週轉率將是 4.7 倍，非常接近我們 4.75 倍的目標。

We used our cash from operations to reduce our outstanding debt, invest in our businesses that are performing well, and return value to our shareholders.

我們利用營運產生的現金來減少未償債務，投資於業績良好的業務，並為股東回報價值。

We paid down $106.1 million of debt during the third quarter and $291 million in the nine-month period.

我們在第三季償還了 1.061 億美元的債務，在九個月期間償還了 2.91 億美元的債務。

At September 20, 2015, our total debt outstanding was $2.1 billion resulting in an improved net debt to total capital ratio of 33.8%.

截至 2015 年 9 月 20 日，我們的未償債務總額為 21 億美元，淨債務與總資本的比率提高至 33.8%。

As of September 30 of 2015 we had $489 million outstanding on our $1.5 billion revolving accessed facility.

截至 2015 年 9 月 30 日，我們價值 15 億美元的循環訪問設施尚未償還 4.89 億美元。

We spent $42.3 million on capital expenditures during the 2015 third quarter and $119.4 million year-to-date.

2015 年第三季我們的資本支出為 4,230 萬美元，年初至今為 1.194 億美元。

Our full year 2015 CapEx budget remains $200 million.

我們 2015 年全年資本支出預算仍為 2 億美元。

The majority of which is related to organic growth North Americas including the toll processing and aerospace activities mentioned earlier.

其中大部分與北美的有機成長有關，包括前面提到的來料加工和航空航太活動。

We also paid quarterly dividends of $29 million during the quarter and further enhanced our shareholder returns with share repurchases.

我們還在本季支付了 2,900 萬美元的季度股息，並透過股票回購進一步提高了股東回報。

Given what we believe to be an undervalued share price, we have been very active repurchasing our shares this year with repurchases of $142.3 million or $2.5 million shares in the third quarter of 2015.

鑑於我們認為股價被低估，我們今年一直非常積極地回購股票，在 2015 年第三季回購了 1.423 億美元或 250 萬美元的股票。

And in the nine months ended September 30 of 2015, we've repurchased $342.3 million or $5.95 million shares of our common stock at an average price of $57.50 per share.

在截至 2015 年 9 月 30 日的九個月中，我們以每股 57.50 美元的平均價格回購了 3.423 億美元或 595 萬美元的普通股。

As a result of these repurchases, we realized an earnings per share benefit of $0.11 per share during the first nine months of 2015.

透過這些回購，我們在 2015 年前 9 個月實現了每股收益 0.11 美元。

And on a pro forma basis, that is if we would have repurchased all of the 5.95 million shares on January 1, the impact on our earnings per share would be $0.23 for the nine months.

根據預計，如果我們在 1 月 1 日回購全部 595 萬股股票，那麼這九個月對我們每股盈餘的影響將為 0.23 美元。

Because of our significant share repurchase activity in 2015, we have almost depleted our authorization under our existing share repurchase program.

由於我們在 2015 年進行了大量的股票回購活動，我們幾乎耗盡了現有股票回購計畫下的授權。

To allow us to continue to opportunistically repurchase shares when they are undervalued and we have available cash, our board amended our share repurchase plan and increased the authorized the number of shares available to be repurchased by 7.5 million shares and extended the plan through December 31, 2018.

為了讓我們能夠在股票被低估且我們有可用現金時繼續機會性地回購股票，我們的董事會修改了我們的股票回購計劃，將授權可回購的股票數量增加了750 萬股，並將該計劃延長至12 月31 日， 2018.

The 7.5 million shares authorized for repurchase represents approximately 10% of our current shares outstanding.

授權回購的 750 萬股股份約占我們目前已發行股份的 10%。

We expect to use available cash to continue to reduce our debt, support our various growth activities, pay our quarterly dividends and opportunistically repurchase shares of our common stock.

我們預計將使用可用現金繼續減少我們的債務，支持我們的各種成長活動，支付季度股息並伺機回購我們的普通股。

Now, turning to our outlook.

現在，轉向我們的展望。

While we believe the US economy will continue its slow growth going forward, given increased uncertainty in the market at this time, along with normal seasonal patterns, we are cautious in regard to both business activity levels and metal pricing in the fourth quarter of 2015.

雖然我們認為美國經濟未來將繼續緩慢成長，但考慮到目前市場的不確定性增加以及正常的季節性模式，我們對 2015 年第四季的商業活動水平和金屬定價持謹慎態度。

These factors, combined with two less shipping days in the fourth quarter lead us to expect a decrease in tons sold of approximately 4% to 5% in the fourth quarter of 2015 over the third quarter of 2015, compared to the more typical seasonal trend of down 5% to 10%.

這些因素，加上第四季度運輸天數的減少，使我們預計 2015 年第四季的銷售噸數將比 2015 年第三季減少約 4% 至 5%，與更典型的季節性趨勢相比下降5%至10%。

Metals pricing is expected to remain under pressure for most products the company sells through the remainder of 2015.

預計公司在 2015 年剩餘時間內銷售的大多數產品的金屬定價仍將面臨壓力。

Accordingly, we expect our average selling price in this fourth quarter of 2015 to be down %1 to 2% from the third quarter of 2015.

因此，我們預計 2015 年第四季的平均售價將比 2015 年第三季下降 1% 至 2%。

As a result, we currently expect non-GAAP earnings per diluted share to be in the range of $0.75 to $0.85 for the fourth quarter ending December 31, 2015.

因此，我們目前預計截至 2015 年 12 月 31 日的第四季非 GAAP 攤薄每股收益將在 0.75 美元至 0.85 美元之間。

We remain confident in our ability to continue to effectively manage the controllable aspects of our business to mitigate the volatile factors that impact our industry and are beyond our control.

我們仍然相信我們有能力繼續有效管理業務的可控方面，以減輕影響我們行業且超出我們控制範圍的波動因素。

We are proud of the exceptional execution by our managers in the field.

我們為我們的現場管理人員的卓越執行力感到自豪。

Our effective working capital management and consistent gross profit margins provide strong cash flows that allow us to continue to fund growth opportunities while at the same time providing steady returns to our shareholders.

我們有效的營運資本管理和穩定的毛利率提供了強勁的現金流，使我們能夠繼續為成長機會提供資金，同時為股東提供穩定的回報。

That concludes our prepared remarks.

我們準備好的演講到此結束。

Thank you for your attention.

感謝您的關注。

And at this time, we would like to open the call up to questions.

此時，我們希望透過電話會議提出問題。

Operator?

操作員？

Thank you.

謝謝。

We will now be conducting a question-and-answer session.

我們現在將進行問答環節。

(Operator Instructions).

（操作員說明）。

Our first question is from Michael Gambardella of JPMorgan.

我們的第一個問題來自摩根大通的邁克爾·甘巴德拉（Michael Gambardella）。

Please go ahead.

請繼續。

Yes.

是的。

Good morning.

早安.

Good morning.

早安.

Good morning, Mike.

早上好，麥克。

Hey.

嘿。

I have a couple of questions, one, I mean just based on how aggressive you've been really this whole year on the share buy-back and how the board has increased the share buy-back, is that an indication that the M&A activity coming in your door, like, what you -- what people are bringing to you or what you're looking at has diminished even though the market -- kind of is towards the bottom anyway?

我有幾個問題，第一，我的意思是，根據您這一整年在股票回購方面的積極程度以及董事會如何增加股票回購，這是否表明併購活動來到你家門口，就像，你——人們為你帶來的東西或你正在尋找的東西已經減少了，儘管市場——無論如何都在走向底部？

The answer to that Mike is no.

麥克的答案是否定的。

There's quite a bit of activity on the M&A front.

併購方面有相當多的活動。

But as you know, we've always been very selective on our acquistion strategy.

但如您所知，我們在收購策略上一直非常有選擇性。

They have to accretive.

他們必須增值。

And we just haven't seen anything thus far that really caught our interest.

到目前為止，我們還沒有看到任何真正引起我們興趣的東西。

So but there is activity, we fully intend to keep a very active in the M&A portion of our business.

因此，但有活動，我們完全打算在我們業務的併購部分保持非常活躍。

But as so far this year we just haven't seen anything that we really thought would be a good addition to our group and the diversification policies that we have.

但今年到目前為止，我們還沒有看到任何我們真正認為對我們集團和我們所擁有的多元化政策有好處的補充。

And Mike, we've tried to, you know, make it kind of clear that we have not given up anything from our capital allocation whether it be M&A, investing for organic growth, paying our dividends or repurchasing shares.

麥克，我們試圖明確表示，我們沒有放棄任何資本配置，無論是併購、投資有機成長、支付股息或回購股票。

We're in a position where we're still able to execute on all four of those.

我們仍然能夠執行所有這四項任務。

Unfortunately, our stock price has been at a level where we felt it was an extremely good investment for us and so we've been, you know, more active both because of the price and also because of the available cash we've had from our really strong working capital management and the inventory reductions we've had during the year.

不幸的是，我們的股價一直處於這樣的水平，我們認為這對我們來說是一項非常好的投資，因此我們變得更加積極，既因為價格，也因為我們擁有的可用現金我們非常強大的營運資金管理以及我​​們在這一年中的庫存減少。

Would your typical acquisition target though be a company that probably wouldn't want to sell at the bottom because typically go after companies that are well managed make -- probably better balance sheets because they're well managed and probably don't necessarily want to fail down at the bottom?

您的典型收購目標是否是一家可能不想在底部出售的公司，因為通常會追求管理良好的公司——可能會擁有更好的資產負債表，因為它們管理良好，並且可能不一定想要這樣做跌落谷底？

Would that be a true statement?

這是真的嗎？

Yes it would.

是的，會的。

And even though we don't value based on the highest level of times like 2008 or the lowest 2009, we do it over the period of time in a

儘管我們並未根據最高水準（例如 2008 年或最低水準 2009 年）進行估值，但我們會在一段時間內進行評估

normalized pretax profit basis.

標準化稅前利潤基礎。

But as a seller, if you're not doing as well as you think you should be doing or could be doing, then the likelihood of you're sitting on the sideline until a period of time until your results are where your expectations lie with probably pretty good.

但作為一名賣家，如果你的表現沒有達到你認為應該做或可能做的那麼好，那麼你很可能會袖手旁觀，直到你的結果達到你的期望為止。可能還不錯。

Yes.

是的。

And we have I would say recently seen a bit more potential opportunities out there and they're not -- a lot of them aren't attractive to us as Gregg said.

我想說，我們最近看到了更多潛在的機會，但它們並沒有——正如格雷格所說，其中許多對我們沒有吸引力。

But it does seem there's been a bit more pickup in companies that are considering selling.

但考慮出售的公司似乎確實有所回升。

And just another question on the -- I know you're -- you said that the carbon sheet business is about 15%.

另一個問題是——我知道你——你說碳板業務大約佔 15%。

In that area, when you have such a significant trade case -- you have three trade cases that maybe, you know, represent about 15% of US supply of carbon sheets coming for preliminary ferrous out into end of December and, say, January, do you do any preparation in terms of purchasing or not or do you just wait and see what happens with the announcement?

在這個領域，當你有如此重要的貿易案例時 - 你有三個貿易案例，你知道，這可能代表了美國碳板供應量的 15% 左右，這些碳板供應到 12 月底，比如說 1 月份，您是否在購買方面做了任何準備，還是只是等待公告的結果？

Yes, Michael.

是的，邁克爾。

This is Jim.

這是吉姆。

Yes.

是的。

We don't speculate.

我們不猜測。

It's too difficult to do.

太難做到了。

It's just not part of our model.

它只是不是我們模型的一部分。

We bagpipe for need, not for greed.

我們吹笛是為了需要，而不是為了貪婪。

Customers tell us what they're going to buy and we stock the right stuff.

客戶告訴我們他們要買什麼，我們就會庫存合適的東西。

So we don't try to play in that game.

所以我們不會嘗試參加那個遊戲。

We don't anticipate anything coming forward.

我們預計不會發生任何事情。

If it's very positive on the tariffs, that's fantastic but we just -- as Jim pointed out, we're just totally focused on turning our inventories and hopeful of good results with respect to the trade cases.

如果關稅方面非常積極，那就太棒了，但我們只是 - 正如吉姆指出的那樣，我們只是完全專注於庫存週轉，並希望在貿易案件方面取得良好結果。

Great.

偉大的。

All right.

好的。

Thank you.

謝謝。

I'll get back in a few.

我過幾天就回來。

Thanks, Mike.

謝謝，麥克。

Thank you.

謝謝。

The next question is from Tony Rizzuto of Cowen and Company.

下一個問題來自 Cowen and Company 的 Tony Rizzuto。

Please go ahead.

請繼續。

Hi, everyone.

大家好。

Got a couple of questions.

有幾個問題。

Because --

因為 -

Good morning, Tony.

早安，托尼。

Good morning, Greg.

早安，格雷格。

But the first -- obviously very impressive that you guys were able to increase the FIFO margins so much.

但第一個——顯然非常令人印象深刻，你們能夠將 FIFO 利潤提高這麼多。

You much 70 basis points and then you've done that every quarter this year.

你已經提高了 70 個基點，然後今年每個季度都這樣做了。

So, you know, first question is the type of performance repeatable in your view?

那麼，您知道，第一個問題是您認為可重複的效能類型嗎？

And could we see the larger gains if prices simply were to stabilize?

如果價格穩定下來，我們能否看到更大的漲幅？

I think that that 26.4% is about as good as it's going to get in my personal opinion.

我個人認為 26.4% 已經是最好的了。

OK.

好的。

Now Karla is looking at me cross signed.

現在卡拉正在看著我交叉簽名。

She may have a different opinion than that.

她可能有不同的看法。

But I think that we had a remarkable gross profit margin improvement in the third quarter, but I would not look for an improvement in the fourth quarter over the third quarter because the seasonality -- a lot of people in the fourth quarter, a lot of competitors of ours like to dump inventories in the fourth quarter.

但我認為我們在第三季的毛利率有了顯著的改善，但我不會期望第四季會比第三季有所改善，因為季節性——第四季有很多人，很多人我們的競爭對手喜歡在第四季拋售庫存。

So we're going to be faced with that headwind.

所以我們將面臨這種逆風。

There's still ample imports at all the docks throughout North America.

整個北美的所有碼頭仍然有充足的進口貨物。

That's not a good thing.

這可不是什麼好事。

So I wouldn't factor in any improvement in our fourth quarter gross profit margin over the third quarter.

因此，我不會考慮第四季毛利率較第三季的任何改善。

Yes, I would agree with everything, you know, that Gregg said and especially through the fourth quarter but to the extent we do get into a period of, you know, stable prices, we should be able to get a bit of a bump in that gross profit margin even though the fact that we've been able to achieve what we did in this environment is still pretty amazing to us.

是的，我同意格雷格所說的一切，特別是在第四季度，但就我們確實進入一段價格穩定的時期而言，我們應該能夠得到一些提升儘管我們能夠在這種環境下實現我們所做的事情，但毛利率對我們來說仍然相當驚人。

And it's the point when we would start to see prices increasing, that's when we should be able to get some type of a spread to our current margins for a period of time.

當我們開始看到價格上漲時，我們應該能夠在一段時間內獲得某種類型的利差以達到當前的利潤率。

All right.

好的。

Excellent.

出色的。

Excellent.

出色的。

And then I wanted to follow up because we're starting to hear a lot of mixed comments.

然後我想跟進，因為我們開始聽到很多褒貶不一的評論。

You guys made some mixed comments.

你們發表了一些褒貶不一的評論。

Jim talked about obviously some further slowdown, perhaps, in Ag and industrial equipment.

吉姆顯然談到了農業和工業設備方面可能會進一步放緩。

And just my question is it on the general health of manufacturing in this country and the industrial economy.

我的問題是關於這個國家製造業和工業經濟的整體健康狀況。

Are you guys generally getting a little bit more concern that with the dollar, with a lot of moving parts here, that maybe there's some things going on in the underlying economy that are creating some angst among ends users?

你們是否普遍更擔心美元，這裡有很多變動的部分，也許基礎經濟中正在發生一些事情，導致最終用戶產生一些焦慮？

Hey, Tony.

嘿，東尼。

This is Jim.

這是吉姆。

Hey, Jim.

嘿，吉姆。

Your guess is as good as mine.

你的猜測和我的一樣好。

I mean we just -- we see what we see out there.

我的意思是我們只是——我們看到了我們所看到的。

We know energy is down and we think that will continue for longer period of time than I would have told you two quarters ago.

我們知道能源下降，我們認為這種情況將持續比我兩個季度前告訴你們的更長的時間。

Ag, mining, the heavy Ag, I mean, and mining, it's just down and there's a lot of geopolitical things in the future and present that are going to keep it that way.

農業，採礦業，我的意思是重農業，還有採礦業，它正在下降，未來和現在有很多地緣政治因素將使其保持這種狀態。

But we've got some -- it's kind of an interesting time actually.

但我們有一些——實際上這是一個有趣的時刻。

The demand other than what I just mentioned, it's pretty good.

除了我剛才提到的以外的需求，還不錯。

We're -- you know, if the pricing was anywhere near where it should be with the current demand we have, and the condition demand we see going forward, not so much in the fourth quarter mostly because of seasonality, we'd be in better shape.

我們 - 你知道，如果定價接近我們當前的需求，以及我們未來看到的條件需求，那麼第四季度的價格不會那麼高，主要是因為季節性，我們會狀態更好。

Even though we're in good shape now, it's just a matter of the pricing.

儘管我們現在狀況良好，但這只是價格問題。

So we're okay with the demand.

所以我們對這個需求很滿意。

And Tony, we had our semi-annual meeting a couple of months ago.

托尼，我們幾個月前召開了半年會。

And one thing that was consistent at the meeting, there was like 170 of our managers there, was there really wasn't a lot of sniffling, if you will, about demand, okay, other than the guys in our energy business, they were all at the bar for quite most of the evening.

會議上一致的一件事是，我們大約有 170 名經理在場，如果你願意的話，確實沒有太多關於需求的抱怨，好吧，除了我們能源業務的人之外，他們整個晚上的大部分時間都在酒吧。

Okay.

好的。

But demand wasn't really the issue.

但需求並不是真正的問題。

The issue was pricing.

問題在於定價。

And one thing consistent at that meeting was if we're not, you know, going to be going -- if we're in this environment where prices are dropping so low, okay, we really have to maximize our margins as best we possibly can and given our model with small order sizes, quick turnaround, high value-added processing, they really put the pedal to the metal because they realize that their sales dollars were going to go down, not necessarily their tons because demands reasonable, that they had to make it up in the gross profit dollars.

在那次會議上一致的一件事是，如果我們不，你知道，要去——如果我們處於價格如此低的環境中，好吧，我們真的必須盡最大努力最大化我們的利潤可以，考慮到我們的模式具有小訂單規模、快速週轉、高附加價值加工，他們確實全力以赴，因為他們意識到他們的銷售額將會下降，而不一定是他們的噸數，因為需求合理，他們必須用毛利來彌補。

So --

所以 -

Yes.

是的。

And I think Tony, there's a comments about some of the specific markets.

我想托尼，有一些關於某些特定市場的評論。

Of course we're experiencing that to certain extent that at Reliance our diversification strategy that we have tried to build the company around we think helps mitigate that offset because we've got positive markets with growth at the same time that we're experiencing, you know, some potential hesitation in the other markets

當然，我們在某種程度上正在經歷這種情況，在Reliance，我們試圖圍繞我們的多元化策略建立公司，我們認為這有助於減輕這種抵消，因為我們在經歷成長的同時擁有積極的市場，你知道，其他市場可能會有一些猶豫

I think you guys are obviously doing a lot of the right things and I also like to hear that that you guys continue to be disciplined in terms of the M&A front, so that's very good.

我認為你們顯然做了很多正確的事情，我也喜歡聽到你們在併購方面繼續遵守紀律，所以這非常好。

I think we'd rather see a buy-back stock if your stock is under pressure.

我認為，如果你的股票面臨壓力，我們寧願看到股票回購。

But thanks very much.

但非常感謝。

I appreciate the color.

我很欣賞它的顏色。

Thank you.

謝謝。

Thanks.

謝謝。

Thank you.

謝謝。

The next question is from Timna Tanners of Bank of America Merrill Lynch.

下一個問題來自美銀美林的 Timna Tanners。

Please go ahead.

請繼續。

Hey.

嘿。

Good morning, guys.

早上好傢伙。

Good morning.

早安.

I wanted to dig in a little bit more maybe along the lines of last question in terms of the volume decline year-over-year because I think if you asked us a year ago we would never have anticipated that.

我想進一步深入探討最後一個問題，即銷量同比下降的情況，因為我認為，如果您一年前問我們，我們永遠不會預料到這一點。

So just to understand it, I'm sure some is energy, some is destocking at your customers, some is maybe some other aspects.

所以只要理解它，我確信有些是能源，有些是對客戶的庫存，有些可能是其他方面。

Can you go through and give us, like, a little more granularity on some of the broader trend and what contributed to the volume decline?

您能否詳細介紹一下一些更廣泛的趨勢以及導致成交量下降的原因？

Overall, the volume decline wasn't that bad.

整體而言，成交量下降並沒有那麼嚴重。

You know, tons were down and in the third quarter compared to the second quarter -- only 1.5% which was frankly a little bit of a surprise to us, given the fact that generally third quarter is down somewhere in the neighborhood of 3% to 5% compared to the second quarter.

你知道，與第二季相比，第三季的噸數下降了——只有 1.5%，坦白說，這讓我們有點驚訝，因為事實上第三季總體下降了 3% 到 3% 左右。與第二季相比成長5%。

So we felt pretty good about that.

所以我們對此感覺很好。

So granularity, okay, automotive and our toll processing is doing well, aerospace is doing well, non-res is improving.

因此，粒度方面，汽車和我們的收費處理表現良好，航空航天表現良好，非解析度正在改善。

Albeit slowly, not as quickly as we would like it to.

雖然很慢，但沒有我們希望的那麼快。

But we're up over last year.

但我們比去年有所進步。

And our just -- basic carbon industrial business is doing pretty good.

我們的基礎碳工業業務表現相當不錯。

We're still doing strong in the bridge, bridge builing, barge, wind tower, transmission tower.

我們在橋樑、橋樑建設、駁船、風塔、輸電塔方面仍然表現強勁。

Those businesses are all still doing quite well.

這些業務仍然表現良好。

When you get into the Ag, it gets a lot of press and rightfully so.

當你進入 Ag 時，它會受到很多媒體的關注，這是理所當然的。

They're announcing lay-offs and closure of plants at [CAT] and all that.

他們宣布裁員並關閉 [CAT] 工廠等。

But when you get into the large combines and whatnot, that business is really down a lot.

但當你進入大型聯合收割機之類的領域時，這項業務確實下降了很多。

And a lot of I think the Ag manufacturers are suffering from is because of the strong dollar.

我認為農業製造商遭受的許多損失都是由於美元走強造成的。

They're not exporting to the extent that they should.

他們的出口沒有達到應有的程度。

However when you get into the mid-sized tractors and industrial lawn equipment and whatnot, we're doing well in that portion of the Ag business.

然而，當你進入中型拖拉機和工業草坪設備等領域時，我們在農業業務的這一部分做得很好。

Mining, that doesn't have to really even be discussed.

採礦，甚至不必討論。

It's been down since its peak in 2011.

自 2011 年達到頂峰以來，這一數字一直在下降。

So Lord knows when that's goings to come back.

所以上帝知道什麼時候會回來。

But that's been a non-event for several years now.

但幾年來，這已經不再是一件大事了。

So (inaudible - multiple speakers).

所以（聽不清楚 - 多個發言者）。

Go ahead.

前進。

I was just going to point out too it is true that I think we had anticipated some growth this year and we do think is off the markets are growing but probably more slowly than we'd anticipated.

我也想指出，我認為我們確實預計今年會出現一些成長，我們確實認為市場正在成長，但可能比我們預期的要慢。

But given the pricing environment where we've had prices declining each month, had a what happens is at our customer base, they're only buying the minimum quantities so maybe some of that customer restocking that was built into anticipated volume growth this year hasn't been happening because of the volume, even though the underlying demand is still slowly improving in most areas.

但考慮到我們的價格每個月都在下降的定價環境，我們的客戶群發生的情況是，他們只購買最低數量，因此今年預期銷量增長中的一些客戶補貨可能並沒有發生。儘管大多數地區的潛在需求仍在緩慢改善，但由於數量的原因，這種情況並未發生。

That was going to be my follow-up, just to clarify.

這將是我的後續行動，只是為了澄清。

So if you hadn't had falling prices all year, what do you think volumes would have looked like or if you hadn't had the energy sector, you know, crashing, what might have volunteered liked like?

因此，如果全年價格沒有下跌，您認為銷量會是什麼樣子，或者如果沒有能源行業，您知道，崩潰了，自願者可能會喜歡什麼？

That was going to be my follow-up, just to clarify.

這將是我的後續行動，只是為了澄清。

So if you hadn't had falling prices all year, what do you think volumes would have looked like or if you hadn't had the energy sector, you know, crashing, what might have volunteered liked like?

因此，如果全年價格沒有下跌，您認為銷量會是什麼樣子，或者如果沒有能源行業，您知道，崩潰了，自願者可能會喜歡什麼？

That's a question I'm going to have to put over to Karla.

這是我必須向卡拉提出的問題。

Yes, I mean -- it's kind of hard - tough to quantified.

是的，我的意思是——這有點難以量化。

I mean energy was about 10% of our sales dollars, not pounds, but dollars and their volumes are down over 40% this year compared to last year.

我的意思是，能源占我們銷售額的 10% 左右，不是英鎊，而是美元，今年的銷售量比去年下降了 40% 以上。

So certainly that took away a bit from us.

所以這肯定讓我們失去了一些。

I don't know if we can quantify what demand would be, but what I think we can say is that with the demand levels that exist, which we still think are generally healthy, if it weren't for the imports in the US, we think that pricing would be higher because we think the demand is strong enough to help support pricing absent theimport activity we've seen.

我不知道我們是否可以量化需求量，但我認為我們可以說的是，如果沒有美國的進口，我們仍然認為現有的需求水平總體上是健康的，我們認為定價會更高，因為我們認為需求足夠強勁，可以在沒有我們所看到的進口活動的情況下幫助支撐定價。

Okay.

好的。

If I could just ask one more.

如果我能再問一個就好了。

I wanted to understand, the timing of the changes in your energy sector exposure and the write-downs there is.

我想了解能源產業風險敞口和減記的變化時間。

Should we have think about this warehouse delivery general and administrate decline that you is he conventionally as kind of a good run rate going forward?

我們是否應該將這種倉庫交貨總體和管理下降視為未來良好的運作率？

Has that all been incorporating as of the third quarter or are more cuts going to be reflected going forward?

這些是否已在第三季全部納入，或者未來會反映出更多削減？

It certainly -- and the SG&A line you really don't see much there from the actual impairment charges.

當然，從實際的減損費用中，您實際上看不到太多的銷售、管理及行政費用（SG&A）線。

Those are mainly non-cash picked up in that impairment line and there'll be a little more amortization expense going forward.

這些主要是在減損線中提取的非現金，並且未來的攤銷費用將會增加一些。

Pretax should pick up a bit because of these closures.

由於這些關閉，稅前價格應該會有所回升。

But SG&A, I mean we've -- the energy businesses have taken out quite a bit already.

但SG&A，我的意思是我們——能源業務已經拿出了相當多的資金。

There are only a couple of locations that we're planning to close and there aren't significant head counts there.

我們只計劃關閉幾個地點，而且那裡的員工人數並不多。

We've already I think generally cut expenses.

我認為我們已經普遍削減了開支。

We mentioned down about 38% run rate at our existing energy businesses.

我們提到現有能源業務的運作率下降了約 38%。

So we would expect SG&A on a dollar basis to potentially come down a bit but not significantly from where we were.

因此，我們預計以美元計算的銷售管理費用可能會略有下降，但不會大幅下降。

We'll continue to be monitor as we always do.

我們將一如既往地繼續進行監控。

Continue to get worse, we'll continue to take the cost down.

繼續變得更糟，我們將繼續降低成本。

Bu I can't tell you if that's going to happen.

但我無法告訴你這是否會發生。

All right.

好的。

All right.

好的。

Thank you.

謝謝。

Thanks.

謝謝。

The next question is from Phil Gibbs of Keybanc Capital Markets.

下一個問題來自 Keybanc Capital Markets 的 Phil Gibbs。

Please go ahead.

請繼續。

Hey.

嘿。

Good morning.

早安.

Good morning..

早安..

Great execution.

出色的執行力。

Thank, Phil.

謝謝，菲爾。

I have a question on the inventory momentum.

我有一個關於庫存動量的問題。

Are we likely to see more inventory dollar value reductions here in Q4, meaning inventory as a source of cash?

我們是否可能在第四季度看到更多庫存美元價值下降，這意味著庫存成為現金來源？

Not to the extent that you've seen it in the second and third quarter.

不像你在第二季和第三季看到的那樣。

So we would hope to have some reduction in our inventory dollars by yearend.

因此，我們希望到年底我們的庫存金額能有所減少。

But I would not think that it's going to be close to $120 million and the others that we took out in the third quarter.

但我不認為它會接近 1.2 億美元以及我們在第三季拿出的其他資金。

Okay.

好的。

I appreciate that.

我很感激。

Is there anywhere on the inventory side where you feel like you're a bit heavy or light?

在庫存方面，是否有任何地方讓您感覺有點重或輕？

I mean and how does that relate to your end demand outlook potentially for those product there are any?

我的意思是，這與您對這些產品的最終需求前景有什麼關係？

Yes.

是的。

I think really the only area that we're a little heavy on remains the alloy products that are going into energy.

我認為我們唯一重點關注的領域仍然是進入能源領域的合金產品。

Even though we jumped on that the fourth quarter very quickly, it's still difficult to lower your inventories when your selling prices are going down and your volumes are going down.

儘管我們在第四季度很快就抓住了這個機會，但當銷售價格下降且銷量下降時，仍然很難降低庫存。

We're down 40% basically in energy.

我們的能源基本上下降了 40%。

So we still have a little bit more inventory for the energy sector than we would like.

因此，我們能源產業的庫存仍然比我們希望的多一點。

We're continuing to work that down on a daily basis.

我們每天都會繼續努力解決這個問題。

But really that's the only area.

但實際上這是唯一的區域。

Our flat roll inventories and all products are turning well.

我們的平卷庫存和所有產品都運作良好。

We have long lead times on aerospace key tree plate but that's okay.

我們在航空航太關鍵樹板方面的交貨時間很長，但這沒關係。

You know, we do well from a profitability point-of-view on those products.

你知道，從獲利的角度來看，我們在這些產品上做得很好。

So if we're going to be a little heavy, it would be more on the long lead time items which really the only long lead time items we have in the entire company are the heat replate for aerospace.

因此，如果我們要有點重，那麼更多的是長交貨期項目，實際上我們整個公司唯一的長交貨期項目是航空航天的熱重鍍。

We're okay on inventory.

我們的庫存沒問題。

I'm very, very pleased with our position in inventory as we speak.

我對我們目前的庫存狀況非常非常滿意。

Okay.

好的。

So we're okay on inventory.

所以我們的庫存沒問題。

I'm very very pleased with our position in the inventory as we speak.

我對我們在庫存中的地位非常滿意。

Okay.

好的。

And then if I could just kind of piggyback off the Jim this question on the operating expenses.

然後我是否可以順應一下吉姆關於營運費用的問題。

How much of the operating expense reduction in Q3 versus Q4 just specifically talking about SG&A?

僅就 SG&A 而言，第三季與第四季相比營運費用減少了多少？

At least by my numbers it was down by $13 million.

至少根據我的數據，它減少了 1300 萬美元。

How much of that was core take-out versus lower volumes?

其中有多少是核心外賣，與較低的銷售相比？

Thanks.

謝謝。

Most of it was I would say probably core take-out so to speak.

我想說，其中大部分可能是核心外送。

I mean we were -- and just general fluctuations.

我的意思是我們是——而且只是總體波動。

But there wasn't -- we got the benefit for the full quarter of the majority of the head count reductions that we took in energy, even though there were some more during Q3 but we got a full quarter's worth of the majority of those.

但事實並非如此——我們從能源方面的大部分裁員中獲得了整個季度的收益，儘管第三季度還有更多的裁員，但我們得到了其中大部分的整個季度的收益。

But yes, I don't think there was anything, you know, any isolated specific items in there.

但是，是的，我認為裡面沒有任何東西，你知道，任何孤立的特定物品。

Thank you.

謝謝。

Thank you.

謝謝。

Thank you.

謝謝。

The next question is from Matt Murphy of UBS.

下一個問題來自瑞銀集團的馬特墨菲。

Please go ahead.

請繼續。

Maybe just one more to try and drill down on real demand here in this market because it's been sort of a common refrain that there's buyer hesitancy when inventories are concerned an end so on.

也許只是再一次嘗試深入了解這個市場的實際需求，因為當庫存結束等問題時，買家會猶豫不決，這是常見的說法。

I'm just wondering from your just in time customers, is there anything you're seeing unusual outside of sort of normal seasonal trends?

我只是想問一下你們的準時客戶，除了正常的季節性趨勢之外，你們是否發現了什麼不尋常的東西？

This is a short-term focus question so like when you're seeing kind of realtime in October.

這是一個短期焦點問題，就像你在十月看到的即時情況一樣。

Is there anything that different from your just in time customers than normal?

您的準時客戶與平常有什麼不同嗎？

No, I wouldn't say so.

不，我不會這麼說。

I think third quarter pretty much panned out on a demand side much what we anticipated.

我認為第三季需求的表現幾乎符合我們的預期。

We kind of missed it on the pricing side because we thought it would be more or less stable to up 1% and we had continued to go down.

我們在定價方面有點錯過了，因為我們認為它或多或少會穩定上漲 1%，而我們卻繼續下跌。

So on the demand with our quick turn-around items, for our customers that are buying smaller quantities and need it tomorrow, we haven't seen any surprises.

因此，對於我們的快速週轉產品的需求，對於購買數量較少且明天需要的客戶來說，我們沒有看到任何意外。

They're not hearing about any surprises.

他們沒有聽到任何意外。

It's basically kind of business as usual.

基本上一切如常。

We're going into the November/December timeframe where.

我們將進入 11 月/12 月的時間範圍。

We're going to have less billing days and the holidays seasons and we anticipate that there's going to be, okay, probably more plant closures in this year's fourth quarter than normal which is reflected on our guidance.

我們的計費天數和假期季節將會減少，我們預計今年第四季的工廠關閉數量可能會比正常情況更多，這反映在我們的指導中。

Okay?

好的？

So we're just anticipating that and hopefully we are a wrong.

所以我們只是預測這一點，希望我們是錯的。

But, you know, how we are.

但是，你知道，我們是什麼樣的。

You know, we just prepare for worse and pray for the best.

你知道，我們只是為最壞的情況做好準備，並祈禱最好的結果。

That's good color, thanks.

這個顏色不錯，謝謝

And then I'm just wondering how we should be thinking about your buy-back pace.

然後我只是想知道我們應該如何考慮你的回購速度。

I mean, you slowed down a little bit in the quarter from what you had announced in July.

我的意思是，與 7 月宣布的相比，本季的進度有所放緩。

I'm just wondering if you can share anything about how you think about it in 2016?

我只是想知道您是否可以分享一下您對 2016 年的看法？

I don't think we necessarily slowed down.

我認為我們不一定放慢速度。

And again, you know, we're trying to opportunistically repurchase based on the share price and then also our available cash.

再說一次，你知道，我們正在嘗試根據股價以及我們的可用現金來機會性回購。

So I think we were pretty consistent with the way we executed the share repurchases through the quarter.

因此，我認為我們在整個季度執行股票回購的方式非常一致。

We do think it's a good use of our cash given the share price that's out there.

考慮到目前的股價，我們確實認為這是對我們現金的一個很好的利用。

At the same time, you know, we are also committed to trying to pay down some debt which we were successful and also paying down, you know, over $100 million of debt during the quarter.

同時，我們也致力於償還一些債務，我們已經成功地償還了一些債務，並且在本季度償還了超過 1 億美元的債務。

So we're trying to balance both of those, but depending on how the market treats our stock will depend how active we are in the share repurchases.

因此，我們正在努力平衡這兩點，但取決於市場如何對待我們的股票，這將取決於我們在股票回購方面的積極程度。

Okay, thanks a lot.

好的，非常感謝。

Thank you.

謝謝。

Thank you.

謝謝。

The next question is from Jorge Beristain of Deutsche Bank.

下一個問題來自德意志銀行的 Jorge Beristain。

Please go ahead.

請繼續。

Hi, good morning, everybody.

嗨，大家早安。

My question was just about your M&A strategy given that you guys are about 50% to 60% utilization, the kind acquisition that you're looking to do I'm assuming are sort of new product.

我的問題只是關於你們的併購策略，因為你們的利用率約為 50% 到 60%，我假設你們想要進行的收購是一種新產品。

But is there any kind of internal harvesting that you can do of your existing facilities to repurpose them to target those markets and would it be a cost savings move to look internally as opposed to doing external M&A?

但是，您是否可以對現有設施進行任何形式的內部收穫，以重新調整其用途以瞄準這些市場？與進行外部併購相比，內部考察是否是一種節省成本的舉措？

We're always looking at both.

我們總是同時關注兩者。

And there's not a whole lot of new different types of products that we can get into very honestly.

而且我們並沒有很多新的不同類型的產品可以非常誠實地進入。

I think we touch on virtually all metal products in basically every region of the country.

我認為我們幾乎涉及全國每個地區的所有金屬產品。

And we look at each acquisition on its own merit.

我們會根據每次收購的優點來看待。

We're not out there looking for a titanium customer, competitor to acquire, rather or anything like that.

我們不是在尋找鈦客戶、要收購的競爭對手或類似的東西。

We'll just look at whatever comes in that's profitable and has a great management team.

我們只會關注那些能夠獲利並且擁有優秀管理團隊的產品。

So we really don't have a model where we say we want to get into different products.

所以我們確實沒有一個模型可以讓我們說我們想要進入不同的產品。

Now there's preferences, okay.

現在有偏好了，好吧。

Obviously we would like to be a little bit more heavy in the -- like the aluminum plate business in the southeastern market.

顯然，我們希望在東南市場的鋁板業務上加大力度。

But those opportunities will surface when they surface.

但這些機會一旦出現就會浮現。

So I think we're going to continue our M&A activity in the same manner in which we've been doing since we went even before we went public in '94.

因此，我認為我們將繼續我們的併購活動，就像我們自 94 年上市以來一直在做的那樣。

We'll just see how it goes.

我們將看看事情進展如何。

And Jorge, this is Bill Sales.

豪爾赫，我是比爾‧賽爾斯。

and we are expanding.

我們正在擴大規模。

We've got two new locations of AMI that we opened in Turkey and France.

我們在土耳其和法國開設了兩個新的 AMI 辦事處。

We did the acquisition last year of All Metal Services.

我們去年收購了 All Metal Services。

Both of those obviously aerospace related.

兩者顯然都與航空航天有關。

So we do like some of those end markets and we'll look at those acquisitions when they're available to us.

因此，我們確實喜歡其中一些終端市場，當我們可以進行這些收購時，我們會考慮這些收購。

Yes.

是的。

I think also, Jorge, you mentioned utilization and us being about 50% to 60%.

我還認為，Jorge，您提到了利用率，我們約為 50% 到 60%。

And just as a reminder, utilization at the service center level we look at much differently than utilization the way the mills look at it.

提醒一下，我們對服務中心層面的利用率的看法與工廠對利用率的看法有很大不同。

So being at 50% to 60% kind of a normal capacity rate for us is more about two-thirds or 66% to 67%.

因此，對我們來說，50% 到 60% 的正常產能率大約是三分之二，即 66% 到 67%。

So it may not -- we don't at this point we're as maybe underutilized within our facilities as your might think if you're thinking kind of mill targets.

所以可能不會——我們目前不會像您在考慮工廠目標時所想的那樣，我們的設施可能沒有充分利用。

So some of our locations certainly like the one servicing auto are running higher than this.

因此，我們的一些地點（例如維修汽車）的運行速度肯定高於此。

Some of our like our non-res might be blow that right now and we expect that business to come back at some point.

我們的一些非資源人員現在可能會受到打擊，我們預計該業務會在某個時候恢復。

But to what Gregg said, we do look and we've done some closures recently and some combinations but we're not probably as far off on utilization from the target as you might think.

但對於格雷格所說的，我們確實進行了觀察，並且最近做了一些關閉和一些組合，但我們的利用率可能並不像您想像的那樣遠離目標。

And the utilization, normally that's rated on seven days as week, okay, 24 hours a day.

使用率通常是每週 7 天，好吧，每天 24 小時。

And we have a few, like, our toll processing operations that are servicing auto appliance and whatnot.

我們有一些，例如，我們的收費加工業務，為汽車電器等提供服務。

They run those shifts seven day as week, 24 hours a day.

他們每週 7 天、每天 24 小時輪班。

Our normal service center operates Monday through Friday, okay.

我們的正常服務中心週一至週五營業，好。

Typically it's two shifts running production and one shift doing the loading and whatnot.

通常以兩班制進行生產，一班制進行裝載等。

That's normal for us.

這對我們來說很正常。

So we're a 65% utilization rate during normal to good times is absolutely normal.

因此，我們在正常情況下的利用率為 65%，這絕對是正常的。

You'll never hear us say, in my opinion, well, not my opinion, period.

你永遠不會聽到我們說，在我看來，好吧，不是我的觀點，就這樣。

You'll never here us say we're at 80% utilization rate.

你永遠不會在這裡說我們的利用率是 80%。

It's just not going to happen.

這不會發生。

I got, thanks.

我明白了，謝謝。

And maybe I could follow up on aluminum as well because obviously it's the hot topic and everyone's talking about aerospace exposure now.

也許我也可以跟進鋁，因為顯然這是熱門話題，現在每個人都在談論航空航天暴露。

Can you just quantify or explain a little bit better what exactly you're doing in there by the supplying of the heat treated plate and stuff.

您能否透過提供熱處理板材和材料來更好地量化或解釋您到底在做什麼。

Are you guys doing any further conversion or value adding of that metal cutting, sawing, anything like that or are you simply redistributing product mainly from your existing heat treat plate suppliers?

你們是否對金屬切割、鋸切等進行進一步的轉換或增值，或者你們只是主要從現有的熱處理板供應商重新分配產品？

No.

不。

Most of what we do is processed.

我們所做的大部分工作都是經過處理的。

The biggest percentage is in aluminum plate.

佔比最大的是鋁板。

Very, very high percent like 90%-plus is a plate that we will cut.

非常非常高的百分比（例如 90% 以上）是我們要切割的板材。

We also do some premachining.

我們也進行一些預加工。

And we like that value-added business and are continuing to invest and grow in that area.

我們喜歡增值業務，並將繼續在該領域投資和發展。

And does that come with more sort of fixed price contracts that giving you visibility or is it more like a cost plus so that when you so that you're adding that $300 million revenue, that's like a value add target or could you explain how the margins for that value add service looks going forward?

這是否會帶來更多類型的固定價格合同，為您提供可見性，或者它更像是成本加成，以便當您增加3 億美元的收入時，這就像一個增值目標，或者您能否解釋一下如何增值服務的利潤前景如何？

Yes.

是的。

Most of that is contractual and so it is more of a fixed price where we have our costs fixed and our price to the end customer fixed.

其中大部分是合約性的，因此更多的是固定價格，我們的成本是固定的，對最終客戶的價格也是固定的。

And, yes, obviously the $300 million is what we're estimating the revenue side of that to be.

是的，顯然 3 億美元就是我們估計的收入部分。

We still do participate in some of that business is spot business, what we call transactional business that would be a customer calling in with an inquiry, we would price it based on that one inquiry.

我們仍然參與其中一些業務，即現貨業務，我們稱之為交易業務，即客戶致電詢問，我們將根據該詢問定價。

Got it.

知道了。

Sorry, if I could just punch in one last question.

抱歉，我可以補充最後一個問題嗎？

I just had a client asking but there was a change in your compensation metrics for the executive management.

我剛剛有一位客戶詢問，但你們對執行管理階層的薪酬指標改變了。

I think previously you'd targeted about a 13% return on equity and that was recently lowered to 10%.

我認為之前你們的目標是 13% 的股本回報率，最近已降至 10%。

Any comments on why the change?

為什麼要改變有什麼評論嗎？

Yes.

是的。

I think overall Jorge, when our board reviewed the compensation, the 13% return on beginning equity metric that had been established as target was based on about a 25-year historical average.

我認為總體而言，豪爾赫，當我們的董事會審查薪酬時，13% 的初始股本回報率目標被確定為基於大約 25 年的歷史平均水平。

And I think that our Board believed that the company was doing a lot of the right things and we were performing well at target, that 50th percentile that they equate with target within our compensation peer group.

我認為我們的董事會相信公司做了很多正確的事情，而且我們在目標上表現良好，即他們與我們薪酬同業群體中目標的第 50 個百分點。

But with the 13% target, we were not being paid that way.

但由於 13% 的目標，我們並沒有得到這樣的報酬。

So looking at kind of updating the average, looking at current market factors, and the way the company has performed, they felt it was appropriate to better align the percentage which they took down to 10% return on beginning equity to really -- to reflect target performance within our compensation peer group.

因此，在考慮更新平均值、考慮當前市場因素以及公司的表現方式時，他們認為最好將初始股本回報率降至 10%，以更好地調整百分比，以真正反映我們的薪酬同行群體中的目標績效。

Thanks very much.

非常感謝。

Thank you.

謝謝。

(Operator Instructions) And the next question is from Tony Rizzuto of Cowen and Company.

（操作員說明）下一個問題來自 Cowen and Company 的 Tony Rizzuto。

Please go ahead.

請繼續。

Hi.

你好。

Thanks for taking my follow-up.

感謝您接受我的跟進。

Karla, I just had a quick question for you on rough feel for 2016 CapEx at this point.

Karla，我剛剛想問您一個關於 2016 年資本支出的粗略感受的快速問題。

And any commentary you can make on working capital as well as we think about 2016?

您對營運資金以及我們對 2016 年的看法有何評論？

Yes.

是的。

So I guess 2016 our CapEx budget, we've been around $200 million on a budget basis the last few years.

所以我猜 2016 年我們的資本支出預算，過去幾年我們的預算約為 2 億美元。

We've (inaudible) in this year to.

我們今年（聽不清楚）。

We probably won't hit the $200 million.

我們可能不會達到 2 億美元。

We'll probably spent more in the $170 million to $180 million range.

我們可能會花費更多在 1.7 億至 1.8 億美元之間。

I think we still see some good growth opportunities out there so I would expect in 2016 that we would probably be pretty close to where we've been recently so somewhere around that $180 million to $200 million level.

我認為我們仍然看到了一些良好的成長機會，因此我預計 2016 年我們可能會非常接近最近的水平，即 1.8 億美元至 2 億美元左右的水平。

We haven't gone through the process yet but based on what we see out there, we'd anticipate that.

我們還沒有完成這個過程，但根據我們所看到的情況，我們可以預見這一點。

From a working capital standpoint our accounts receivable stays pretty consistent.

從營運資金的角度來看，我們的應收帳款保持相當穩定。

Inventory is the big item there.

庫存是那裡的大項目。

Quite honestly, we would hope to have to use cash to build working capital because of prices going up and demand going up.

老實說，由於價格上漲和需求增加，我們希望必須使用現金來建立營運資金。

Everything depends on that so we certainly would not expect to throw off the cash that we did this year because as Gregg mentioned earlier, our inventories are in much better shape now than they were early this year which drove part of the strong cash flow.

一切都取決於此，所以我們當然不會指望扔掉今年的現金，因為正如格雷格之前提到的，我們的庫存現在比今年年初要好得多，這推動了強勁的現金流。

The other element was just the prices have been declining every month so that in and of itself throws off cash from working capital reductions.

另一個因素是價格每個月都在下降，因此營運資金減少本身就導致現金流失。

So we would expect to have positive cash flow next year but certainly not -- given steady up market conditions we are very hopeful for, we would expect it to be much less than in 2015.

因此，我們預計明年將出現正現金流，但肯定不會——鑑於我們非常希望穩定的市場狀況，我們預計現金流將比 2015 年少得多。

Aren't we all?

我們不都是嗎？

All right.

好的。

Thanks, appreciate it, Karla.

謝謝，謝謝，卡拉。

Thank you.

謝謝。

Thanks, Tony.

謝謝，托尼。

Thank you.

謝謝。

The next question is from Phil Gibbs of KeyBanc.

下一個問題來自 KeyBanc 的 Phil Gibbs。

Please go ahead.

請繼續。

Thanks for taking my follow-up.

感謝您接受我的跟進。

I had a question on the seasonal cadence on demand.

我有一個關於按需季節性節奏的問題。

I think you outlined 4% to 5% down.

我認為您概述了 4% 到 5% 的折扣。

And you said normal seasonality is 5% to 10%.

你說正常的季節性是 5% 到 10%。

Why do you see it better I guess relative to what you typically see?

我猜為什麼相對於你通常看到的，你會看得更好？

Well, I think that third quarter which is normally down 3% to 5% and it was only down 1.5% for us, that gave us a little bit of a guidance that maybe fourth quarter tons are not going to be down as low as the typical years that we've seen over the past five years.

嗯，我認為第三季度通常會下降 3% 到 5%，而我們只下降了 1.5%，這給了我們一點指導，也許第四季度的噸數不會下降到我們在過去五年中看到的典型年份。

So that -- and then also because customers are buying smaller quantities, they need it quicker.

因此，由於客戶購買的數量較少，他們需要的速度更快。

The quick turnaround has become even more important to them because they're watching their inventories because of pricing going down and whatnot that that will bring in business for us probably a little better because our tonights were down 1.5%, MSCI was down 2.9%.

快速週轉對他們來說變得更加重要，因為他們正在關注庫存，因為價格下跌，這可能會為我們帶來更好的業務，因為我們今晚下跌了 1.5%，MSCI 下跌了 2.9%。

So evidently we're doing something right.

顯然我們正在做正確的事。

And we attribute it to be the money that we spent on capital equipment.

我們將其歸因於我們花在資本設備上的錢。

We've got excellent quality that's going out I think much better than many of our competitors do because they haven't spend the money on newer equipment.

我認為我們的品質比我們的許多競爭對手要好得多，因為他們沒有花錢購買更新的設備。

So I think just overall because of the quality that we have, the short turnaround and the smaller quantities which is our sweet spot, I don't think we're going to see as much of a decline in the tons in the fourth quarter as we had seen in other quarters.

因此，我認為總體而言，由於我們的品質、週轉時間短和數量較少（這是我們的最佳點），我認為我們不會看到第四季度的噸數下降那麼多。我們在其他地方也見過。

Okay.

好的。

That's helpful.

這很有幫助。

And last one and I'll jump off.

最後一個我會跳下去。

Jim, I just wanted to clarify something you said earlier.

吉姆，我只是想澄清一下你之前所說的話。

Did you say that you saw construction equipment orders from your perspective or demand for metal picking up?

您是否說從您的角度看到了建築設備訂單或金屬需求的回升？

I just wanted to be sure I heard that right.

我只是想確定我沒聽錯。

Yes, I did say that.

是的，我確實這麼說過。

It's an uptick but in a certain segment.

這是一個上升，但在某個特定領域。

I think big equipment, doing road work, cranes, that type of thing.

我認為大型設備，例如道路施工、起重機等。

So basically the heavy equipment, okay, in Ag, we see absolutely no improvement on.

所以基本上重型裝備，好吧，在 Ag 中，我們絕對沒有看到任何改進。

We have had a little bit of an uptick when it comes to the mid-size tractors, arcillary equipment that are used in that and lawnmowers, industrial mowers for whatever reason.

當涉及到中型拖拉機、其中使用的輔助設備以及割草機、工業割草機（無論出於何種原因）時，我們的銷售量略有上升。

We're actually selling more metal into that segment than we had last year.

實際上，我們向該領域銷售的金屬比去年更多。

And I think Kubota announced like a 10% increase in their volumes this year.

我認為久保田宣布今年的銷量將增加 10%。

So we've benefitted from that.

所以我們從中受益。

And certainly the equipment that are going into the industrial areas with respect to supporting highway construction and whatnot, we've benefitted in that particular area also.

當然，進入工業領域以支持高速公路建設等的設備，我們也在該特定領域受益。

But if you took Ag overall, you know, combined, it's certainly not doing as well as it did and the forecasts are for 2016 to be weaker than they are even this year.

但如果你看一下農業的整體情況，你知道，綜合起來，它的表現肯定不如以前，而且預測 2016 年的表現甚至會比今年還要弱。

Okay.

好的。

Thanks so much.

非常感謝。

Good luck.

祝你好運。

All right.

好的。

Thanks.

謝謝。

Thank you.

謝謝。

And with that, I would like to turn the conference back over to Mr. Mollins for any closing comments.

至此，我想將會議轉回莫林斯先生徵求總結。

Okay.

好的。

Well listen, thanks again for all your support and for participating in today's call.

好的，聽著，再次感謝您的支持和參與今天的電話會議。

We'd like to remind everyone that in November, we will be in New York City presenting at Cowen and Company's Sixth Annual Global Metals and Mining Conference and at Barclay's Industrial Forum.

我們想提醒大家，11 月份，我們將在紐約市出席考恩公司第六屆年度全球金屬和礦業會議以及巴克萊工業論壇。

We hope to see many of you there and thanks again for joining us and have a great day.

我們希望在那裡見到你們，再次感謝您加入我們並祝您度過愉快的一天。

Thank you.

謝謝。

Ladies and gentlemen, this does conclude today's teleconference.

女士們、先生們，今天的電話會議到此結束。

You may disconnect your lines at this time and thank you for your participation.

此時您可以斷開線路，感謝您的參與。