Reliance Inc (RS) 2016 Q2 法說會逐字稿

Greetings and welcome to the Reliance Steel & Aluminum Co.

您好，歡迎來到信實鋼鐵鋁業有限公司。

second-quarter 2016 earnings conference call.

2016年第二季財報電話會議。

(Operator Instructions).

（操作員說明）。

As a reminder this conference is being recorded.

作為提醒，本次會議正在錄製中。

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

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

Thank you.

謝謝。

Please go ahead.

請繼續。

Thank you, operator.

謝謝你，接線生。

Good morning, and thanks to all of you for joining our conference call to discuss our second-quarter 2016 financial results.

早安，感謝大家參加我們的電話會議，討論我們 2016 年第二季的財務表現。

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

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； Jim Hoffman，我們的執行副總裁兼營運長；以及我們的營運執行副總裁 Bill Sales。

A recording of this call will be posted on the Investors section of our website at investor.rsac.com.

本次電話會議的錄音將發佈在我們網站 Investor.rsac.com 的投資者部分。

The press release and the information on this call may 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 achievement of the Company to be materially different from the results, performance or other expectations implied by these forward-looking statements.

本新聞稿和本次電話會議的資訊可能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。可能導致本公司的實際結果、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, 2015 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2015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 to Gregg Mollins, President and CEO of Reliance.

我現在將把電話轉給 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。

I would like to start off by saying that I am extremely proud of the outstanding execution by our managers in the field which contributed to our sixth consecutive quarter of FIFO gross profit margin expansion.

首先，我想說，我對我們該領域經理的出色執行力感到非常自豪，這為我們連續第六個季度實現先進先出毛利率擴張做出了貢獻。

Over the past few years we have made significant investments in cutting edge value added processing equipment to provide higher value to our customers which has benefited our gross profit margin.

在過去幾年中，我們在尖端加值加工設備上進行了大量投資，以為我們的客戶提供更高的價值，這有利於我們的毛利率。

And, as we have discussed in previous quarters, in 2015 we focused our efforts on reducing our inventory levels resulting in a $433 million reduction in inventory.

而且，正如我們在前幾個季度所討論的，2015 年我們集中精力降低庫存水平，導致庫存減少了 4.33 億美元。

In addition to improving our inventory turn and working capital management, we believe our improved inventory position has also contributed to our increased gross profit margin by allowing us to be more selective in our efforts by focusing on higher margin business.

除了改善我們的庫存週轉率和營運資金管理外，我們相信庫存狀況的改善也有助於我們提高毛利率，讓我們更有選擇性地專注於利潤率更高的業務。

During the second quarter our gross profit margin further benefited from a rising pricing environment, most notably for carbon steel products.

第二季度，我們的毛利率進一步受惠於價格上漲的環境，尤其是碳鋼產品。

We were able to enhance our gross profit margin as we pushed through more price increases in the marketplace.

隨著我們在市場上推動更多的價格上漲，我們能夠提高毛利率。

As a result of all these factors, our second-quarter FIFO gross profit margin reached 31.1%, up 540 basis points from the second quarter of 2015.

綜合以上因素，我們第二季先進先出毛利率達31.1%，較2015年第二季成長540個基點。

The metals pricing environment continued to improve as the second quarter progressed with multiple price increases announced on certain carbon steel products.

隨著第二季的進展，某些碳鋼產品宣布多次漲價，金屬定價環境持續改善。

The mill price increases were supported by many factors including steel demand and the filing of multiple trade cases by US producers that have reduced import offerings.

鋼廠價格上漲受到許多因素的支持，包括鋼鐵需求以及美國生產商提出的多項貿易案件減少了進口供應。

In addition, the domestic producers have maintained production capacity discipline and raw material costs have increased.

此外，國內生產商維持產能紀律，原料成本上升。

Despite these positive factors, however, the overall pricing environment remains below 2015 levels and far below peak levels.

然而，儘管存在這些積極因素，整體定價環境仍低於 2015 年水平，且遠低於峰值水平。

Our average selling price per ton sold during the second quarter of 2016 was 10.1% lower than in the second quarter of 2015.

2016 年第二季我們每噸的平均售價比 2015 年第二季低 10.1%。

In regard to customer demand, we experienced a sequential increase in tons sold of 1.1% in the second quarter of 2016 which was in line with our expectation of flat to up 2%.

就客戶需求而言，2016 年第二季我們的銷售量較上季成長 1.1%，符合我們持平至成長 2% 的預期。

Although end demand is not as strong overall as we had anticipated going into 2016, we believe demand is generally healthy with certain markets such as automotive and aerospace continuing to perform at high levels.

儘管 2016 年最終需求整體不如我們預期的強勁，但我們相信需求整體健康，汽車和航空航太等某些市場繼續保持高水準表現。

Our strategy of diversifying our product and end market exposures, along with our ongoing investments in state-of-the-art value added processing equipment and our relentless focus on customer service, has allowed us to increase our market share.

我們的產品和終端市場多元化策略，加上我們對最先進的加值加工設備的持續投資以及我們對客戶服務的不懈關注，使我們能夠增加我們的市場份額。

For the first six months of 2016 we once again outperformed the industry with our same-store tons sold down only 2.1% versus the MSCI industry average shipments which were down 6.9% as compared to the first six months of 2015.

2016 年前六個月，我們的同店銷量僅下降了 2.1%，而 MSCI 行業平均出貨量較 2015 年前六個月下降了 6.9%，我們的表現再次優於行業。

Turning to M&A, we have completed two acquisitions so far in 2016.

說到併購，2016年至今我們已經完成了兩次收購。

On April 1, 2016 we acquired Best Manufacturing, Inc., a custom sheet metal fabricator of steel and aluminum products on both a direct and toll processing basis.

2016 年 4 月 1 日，我們收購了 Best Manufacturing, Inc.，這是一家以直接加工和委託加工方式生產鋼和鋁產品的客製化鈑金製造商。

Best is a great company and has been performing above our expectations since joining the Reliance family.

Best 是一家很棒的公司，自從加入 Reliance 大家庭以來，其表現一直超乎我們的預期。

Tubular Steel, which we acquired at the beginning of the year, is also performing well given its end market exposures.

我們在今年年初收購的 Tubular Steel 考慮到其終端市場敞口，也表現良好。

Both of these acquisitions meet our criteria of acquiring well run businesses that are immediately accretive to earnings.

這兩項收購都符合我們收購經營良好且能立即增加收益的企業的標準。

Given the specialty products or high value added services provided by these companies, they perform above our companywide profitability levels.

鑑於這些公司提供的特色產品或高附加價值服務，它們的表現高於我們全公司的獲利水準。

Strategic M&A opportunity and organic investments will both continue to be integral growth drivers of Reliance.

策略併購機會和有機投資將繼續成為 Reliance 不可或缺的成長動力。

Our balance sheet is strong because our managers have done a great job expanding our margins and rightsizing our inventory levels.

我們的資產負債表很強勁，因為我們的經理在擴大利潤和調整庫存水準方面做得很好。

Together these actions have produced high levels of cash flow enabling us to execute on our balanced capital allocation strategy, allowing for growth of the business as well as stockholder returns including our 6.3% dividend increase effective for the third quarter of 2016.

這些行動共同產生了高水準的現金流，使我們能夠執行平衡的資本配置策略，從而實現業務成長和股東回報，包括 2016 年第三季生效的 6.3% 的股息成長。

We have paid regular quarterly cash dividends for 57 consecutive years and increased our dividend 23 times since our IPO in 1994.

自1994年IPO以來，我們已連續57年定期支付季度現金股息，並增加了23次股息。

In summary, I believe our execution in the first half of the year has been outstanding.

總而言之，我認為我們上半年的執行力非常出色。

Our strong financial performance is the result of margin expansion, due in part to favorable pricing environment, as well as diligent expense and inventory management to drive improved profitability.

我們強勁的財務表現是利潤率擴張的結果，部分原因是有利的定價環境，以及努力提高獲利能力的費用和庫存管理。

Going forward we will continue executing our strategy with the goal of extending our track record of delivering industry leading results.

展望未來，我們將繼續執行我們的策略，目標是擴大我們提供行業領先成果的記錄。

Reliance wouldn't be the Company it is today without the incredibly talented team that we have in place.

如果沒有我們擁有的才華橫溢的團隊，Reliance 就不會成為今天的公司。

On that note this month marks Dave Hannah's official retirement as Reliance's Executive Chairman as part of the executive leadership succession plan we announced in May of 2015.

本月，戴夫漢納 (Dave Hannah) 正式退休，擔任 Reliance 執行董事長，這是我們在 2015 年 5 月宣布的執行領導層繼任計畫的一部分。

Dave will continue as a member of Reliance's Board of Directors.

Dave 將繼續擔任 Reliance 董事會成員。

We thank Dave for his leadership and many contributions over his 35 year career at Reliance.

我們感謝 Dave 在 Reliance 35 年職業生涯中的領導能力和做出的許多貢獻。

We all wish Dave the very best in his retirement.

我們都祝福戴夫退休後一切順利。

I will now hand the call over to Jim to comment further on our operations and market conditions.

我現在將把電話轉給吉姆，以進一步評論我們的營運和市場狀況。

Jim?

吉姆？

Thanks, Gregg, and good morning, everyone.

謝謝格雷格，大家早安。

First, along with Gregg's comments earlier, I would like to thank our operators for their tremendous efforts in achieving a 31.1% gross profit margin in the second quarter of 2016.

首先，除了 Gregg 先前的評論之外，我還要感謝我們的營運商為實現 2016 年第二季 31.1% 的毛利率所做的巨大努力。

To all of you listening in on the call, congratulations and keep up the good work.

對所有收聽電話的人表示祝賀，並繼續努力。

Now I will comment on both pricing and demand for our carbon steel and alloy products as well as our outlook on certain key end markets we sell those products into.

現在，我將評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終端市場的前景。

Bill with then address our aluminum and stainless steel products and related end markets.

隨後比爾將介紹我們的鋁和不銹鋼產品以及相關的終端市場。

Demand for automotive, which we service mainly through our toll processing operations in the US and Mexico, remained robust throughout the second quarter.

我們主要透過美國和墨西哥的來料加工業務來滿足汽車需求，整個第二季度仍然保持強勁。

In addition to strong carbon steel demand, we are continuing to see increased demand for aluminum processing in the automotive industry.

除了強勁的碳鋼需求外，我們還看到汽車產業對鋁加工的需求不斷增加。

We recently opened a new facility in Mexico to support the increased automotive activity in that area.

我們最近在墨西哥開設了一家新工廠，以支持該地區日益增長的汽車活動。

We also added a second line to process aluminum for the automotive industry in our Michigan facility in the second quarter of 2016 and we will be opening a new facility in Kentucky in 2017 to support both aluminum and steel processing in that area.

2016 年第二季度，我們也在密西根州工廠新增了第二條生產汽車工業鋁材的生產線，並將於 2017 年在肯塔基州開設新工廠，以支援該地區的鋁材和鋼材加工。

These investments provide us with additional capacity to service this important end market and processing carbon steel, as well as aluminum, where volumes are increasing at a rapid rate.

這些投資為我們提供了額外的能力來服務這個重要的終端市場和加工碳鋼以及鋁，這些市場的產量正在快速成長。

We are very well positioned from both a technology and capital perspective to continue to support this growth.

從技術和資本的角度來看，我們都處於非常有利的位置，可以繼續支持這種成長。

As a reminder, while only a small percentage of our total sales dollars, our toll processing activities represent a far greater proportion of our total overall profitability.

提醒一下，雖然我們的來料加工活動只占我們總銷售額的一小部分，但在我們的整體獲利能力中所佔的比例要大得多。

Second-quarter demand in heavy industry, which includes rail car, truck trailer, shipbuilding, barge manufacturing, tank manufacturing and wind and transmission towers, remained flat to slightly down from the first quarter of 2016 levels.

第二季重工業（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）的需求與 2016 年第一季的水平相比保持持平或略有下降。

Our exposure to heavy equipment also includes sales to agriculture equipment OEMs which have been weak for the larger ag equipment.

我們對重型設備的投資還包括對農業設備原始設備製造商的銷售，這些設備的大型農業設備一直疲軟。

That said, Reliance's exposure is mostly to small and midsize agriculture equipment which has held up better than the heavier items.

也就是說，Reliance 的業務主要集中在中小型農業設備上，這些設備比重型設備的承受能力更好。

We are hopeful that the five-year infrastructure bill that was passed on December 2015 will improve further demand trends in the infrastructure and road construction equipment markets beginning 2017.

我們希望 2015 年 12 月通過的五年基礎設施法案將進一步改善 2017 年開始的基礎設施和道路施工設備市場的需求趨勢。

Demand in nonresidential construction continues its gradual but steady improvement and we are seeing increased activity in these markets we serve with our tons shipped slowly improving.

非住宅建築的需求持續逐步但穩定地改善，我們看到我們服務的這些市場的活動增加，我們的出貨量也緩慢增加。

Despite volumes being well below peak levels, we believe that demand will slowly continue to improve in 2017.

儘管銷量遠低於峰值水平，但我們相信 2017 年需求將繼續緩慢改善。

We have made investments in processing equipment for many of our businesses that support this market in order to provide higher levels of processing to our customers.

我們為許多支持該市場的企業投資了加工設備，以便為客戶提供更高水準的加工。

Increased volumes will be absorbed into our existing cost structure as this end market continues to improve.

隨著終端市場的不斷改善，增加的產量將被吸收到我們現有的成本結構中。

Demand for energy, which is mainly oil and natural gas, has fallen further in the second quarter of 2016 from already weak levels due to continued reduction in drilling activities.

由於鑽探活動持續減少，2016 年第二季對能源（主要是石油和天然氣）的需求在本已疲弱的水平上進一步下降。

We have been, and continue to be, proactive in reacting to these market conditions and managing our expenses accordingly.

我們一直並將繼續積極主動地對這些市場狀況做出反應並相應地管理我們的費用。

Although our outlook for energy remains weak in the near-term, we have begun to see early signs of new activity in this end market.

儘管我們對能源的近期前景仍然疲軟，但我們已經開始看到該終端市場新活動的早期跡象。

Although pricing for carbon steel products remains well below peak levels, prices continued to improve throughout the second quarter, primarily due to increases in raw material cost, including scrap, and multiple carbon steel trade cases filed in the US that have resulted in reduced import offerings.

儘管碳鋼產品的定價仍遠低於峰值水平，但第二季度價格持續上漲，主要是由於包括廢鋼在內的原材料成本上漲，以及在美國提起的多起碳鋼貿易案件導致進口供應量減少。

The most significant price increases were for carbon steel flat rolled products, which represent only about 15% of our total sales with multiple price increases announced by the mills in the first half of the year.

漲價最顯著的是碳鋼扁材，產品僅占我們總銷售量的15%左右，上半年鋼廠多次宣布漲價。

Carbon steel plate and structurals represent the single largest components of our product mix with each accounting for 10% of our total sales.

碳鋼板和結構件是我們產品組合中最大的組成部分，分別占我們總銷售額的 10%。

Tape volumes have been down in 2016 mainly because of the weakness in heavy equipment.

2016 年膠帶銷量下降的主要原因是重型設備的疲軟。

However, prices have increased in both quarters of 2016.

然而，2016 年兩季的價格均有所上漲。

Demand for carbon steel structurals has increased in 2016 mainly due to the steady improvement in nonresidential construction.

2016年對碳鋼結構的需求增加主要是由於非住宅建築的穩定改善。

Base prices for alloy products, the majority of which are sold into our energy end markets, have declined, although they have held up better than we expected considering the significant reduction in demand.

合金產品的基本價格（其中大部分銷往我們的能源終端市場）已經下降，儘管考慮到需求的大幅下降，它們的表現比我們預期的要好。

I will now hand the call over to Bill to comment further on our nonferrous markets.

我現在將把電話轉給比爾，以進一步評論我們的有色金屬市場。

Bill?

帳單？

Thanks, Jim.

謝謝，吉姆。

Good morning, everyone.

大家，早安。

Today I will discuss pricing and demand for our aluminum and stainless steel products and certain markets we sell those products into.

今天，我將討論我們的鋁和不銹鋼產品的定價和需求，以及我們銷售這些產品的某些市場。

But before I begin I would also like to recognize our managers for their excellent execution in the second quarter.

但在開始之前，我還要感謝我們的經理在第二季的出色執行。

Keep up the great work.

繼續努力。

Demand for our aluminum and stainless steel products continued to improve in the second quarter of 2016.

2016 年第二季度，我們的鋁和不銹鋼產品的需求持續改善。

Aerospace continues to be one of our strongest end markets.

航空航太仍然是我們最強大的終端市場之一。

Sales to the aerospace market represented approximately 11% of our total sales in the second quarter of 2016.

2016 年第二季度，航太市場的銷售額約占我們總銷售額的 11%。

Our tons sold to the aerospace market were up 2.9% compared to the first quarter of 2016 and up 4.4% compared to the second quarter of 2015.

我們向航空航太市場銷售的噸數與 2016 年第一季相比成長了 2.9%，與 2015 年第二季相比成長了 4.4%。

Demand in aerospace continues to be strong for the products we sell.

航空航太領域對我們銷售的產品的需求持續強勁。

However, we expect the growth rate to moderate slightly as build rates for certain aircraft decline and mill lead times compress a bit.

然而，我們預計，隨著某些飛機的建造率下降和工廠交貨時間略有壓縮，成長率將略有放緩。

Our investments in new international markets have expanded our presence and the global market allowing us to support our customers as they expand.

我們對新國際市場的投資擴大了我們的業務和全球市場，使我們能夠在客戶擴張時為他們提供支援。

The backlog for orders of commercial planes remains robust.

商用飛機訂單積壓依然強勁。

As a result our outlook remains positive and we will continue to look for investment opportunities to expand our aerospace exposure.

因此，我們的前景仍然樂觀，我們將繼續尋找投資機會來擴大我們的航空航太業務。

The majority of the products that we sell to the aerospace market are heat treated aluminum products, especially 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。

Since we last spoke with you in April, our sales of aerospace aluminum plate and general engineering aluminum plate have increased and volumes continue to be strong despite some pressure on pricing.

自從我們上次在四月與您交談以來，我們的航空鋁板和通用工程鋁板的銷量有所增加，儘管價格面臨一些壓力，但銷量仍然強勁。

In terms of our outlook for the balance of the year, we expect continued steady demand with some pressure on margins for both aerospace and general engineering aluminum plate.

就我們對今年餘下時間的展望而言，我們預計需求將持續穩定，航空航太和通用工程鋁板的利潤率將面臨一定壓力。

Common alloy aluminum pricing has remained stable and volume has increased modestly with most of the products being sold to sheet metal fabricators that support a variety of end markets.

普通合金鋁價格保持穩定，銷量略有增加，大部分產品銷往支援各種終端市場的鈑金製造商。

Pricing on common alloy sheet follows ingot and we expect some modest improvement as the Midwest spot price trends up slightly.

普通合金板材的定價跟隨鋼錠定價，隨著中西部現貨價格小幅上漲，我們預計會出現一定程度的改善。

The Midwest spot price has been trading in the $0.82 per pound range with the Midwest premium in the $0.07 per pound range which was fairly steady compared to the first quarter of 2016.

中西部現貨價格一直在每磅 0.82 美元的範圍內交易，中西部溢價在每磅 0.07 美元的範圍內，與 2016 年第一季相比相當穩定。

Turning to stainless steel products, demand for our stainless steel flat products, which are primarily sold into the kitchen equipment, appliance and construction end markets, continue to be very strong.

談到不銹鋼產品，我們的不銹鋼板材產品主要銷往廚房設備、器具和建築終端市場，其需求仍然非常強勁。

Domestic mill lead times have extended to 8 to 10 weeks and we believe there is room for a potential base price increase in the back half of the year.

國內鋼廠交貨時間已延長至 8 至 10 週，我們認為下半年底價仍有潛在上漲空間。

Pricing for stainless steel products is heavily impacted by nickel prices, which have been improving modestly on a sequential quarter basis.

不銹鋼產品的定價受到鎳價的嚴重影響，鎳價環比小幅上漲。

We expect to continue to see some improvement in nickel pricing in the back half of the year.

我們預計下半年鎳價將繼續有所改善。

I will now turn the call over to Karla to review our second-quarter financial results.

我現在將把電話轉給卡拉，以審查我們第二季度的財務表現。

Karla?

卡拉？

Thanks, Bill, and good morning, everyone.

謝謝比爾，大家早安。

Our sales in the second quarter of 2016 were $2.2 billion, down $219.8 million or 9.1% from the second quarter of 2015 due to lower metal prices with our average selling price for tons sold down 10.1%.

由於金屬價格下跌，我們 2016 年第二季的銷售額為 22 億美元，比 2015 年第二季下降 2.198 億美元，或 9.1%，噸平均售價下降 10.1%。

Demand was relatively consistent with our same-store tons sold down 0.4% year over year.

需求相對穩定，同店銷量較去年同期下降 0.4%。

Compared to the first quarter of 2016, our sales were up 1.9% with our average selling price per ton sold up 0.9% and our ton sold up 1.1%.

與 2016 年第一季相比，我們的銷售額成長了 1.9%，每噸平均售價上漲 0.9%，噸銷量上漲 1.1%。

We increased our gross profit margin for the sixth consecutive quarter to 31.1%, up from 29.4% and the first quarter of 2016 and 27.1% in the second quarter of 2015.

我們的毛利率連續第六個季度提高至 31.1%，高於 2016 年第一季的 29.4% 和 2015 年第二季的 27.1%。

Along with the outstanding execution by our managers in the field that Gregg discussed previously, the increase in our FIFO gross profit margin in the second quarter of 2016 benefited from our ability to push through announced mill price increases.

除了 Gregg 之前討論過的該領域經理的出色執行力外，2016 年第二季度我們 FIFO 毛利率的增長得益於我們推動已宣布的工廠提價的能力。

When mills announce price increases we attempt to increase our selling price at date of announcement, which is before we receive the higher cost material in our inventory.

當工廠宣布提價時，我們會嘗試在公告當天提高銷售價格，也就是在我們收到庫存中成本較高的材料之前。

This allows us to increase our gross profit margin until we receive in the higher cost material.

這使我們能夠增加毛利率，直到我們收到成本更高的材料。

The increased gross profit dollars generated from both a higher gross profit margin and a higher average selling price increased our profitability at all levels with our pretax income margin increasing to 6.9% from 5.0% in the first quarter of 2016.

較高的毛利率和較高的平均售價帶來的毛利增加提高了我們各個層面的獲利能力，稅前利潤率從 2016 年第一季的 5.0% 增至 6.9%。

Similar to the prior quarter, we did not record a LIFO inventory valuation adjustment for the second quarter of 2016 as we continue to expect that overall metal prices will be higher at December 31, 2016 as compared to January 1 based on current pricing trends.

與上一季類似，我們沒有記錄2016 年第二季的後進先出庫存估值調整，因為根據當前的定價趨勢，我們繼續預計2016 年12 月31 日的整體金屬價格將高於1 月1 日。

This would typically result in a LIFO charge or expense in 2016.

這通常會導致 2016 年產生 LIFO 費用或費用。

However, given our current expectation of higher metal prices, we anticipate that any LIFO expense would be offset by a decrease in our [lower of cost] for market reserve established as of December 31, 2015.

然而，鑑於我們目前對金屬價格上漲的預期，我們預計任何後進先出費用都將被我們截至 2015 年 12 月 31 日建立的市場儲備[成本較低]的減少所抵消。

In the second quarter of 2015 our results included LIFO income of $32.5 million.

2015 年第二季度，我們的業績包括 LIFO 收入 3,250 萬美元。

As a percent of sales our SG&A expenses were 20.7% compared to 18.2% in the second quarter of 2015 and 20.8% in the first quarter of 2016.

我們的 SG&A 費用佔銷售額的百分比為 20.7%，而 2015 年第二季為 18.2%，2016 年第一季為 20.8%。

On a year-over-year basis the increase as a percent of sales was mainly due to lower metal prices.

與去年同期相比，銷售額百分比的成長主要是由於金屬價格下降。

Our increased gross profit margin drove our operating income margin up to 7.9% for the second quarter of 2016, a significant improvement from 6.6% in the second quarter of 2015 and 6.0% in the first quarter of 2016.

毛利率的提高使得 2016 年第二季的營業利潤率達到 7.9%，較 2015 年第二季的 6.6% 和 2016 年第一季的 6.0% 顯著改善。

Our effective income tax rate for the second quarter of 2016 was 32.7% compared to 32.6% in the second quarter of 2015 and 14.4% in the first quarter of 2016.

2016 年第二季我們的有效所得稅率為 32.7%，而 2015 年第二季為 32.6%，2016 年第一季為 14.4%。

As a reminder, our tax rate in the first quarter of 2016 was significantly reduced as we favorably resolved certain tax matters that have been under examination.

值得一提的是，2016年一季度，我們積極解決了一些正在審查的稅務問題，稅率大幅降低。

We currently estimate that our full-year 2016 effective income tax rate will be approximately 28%, down from 31.1% in 2015.

我們目前預計 2016 年全年有效所得稅稅率約為 28%，低於 2015 年的 31.1%。

Net income attributable to Reliance for the second quarter of 2016 was $100.9 million or $1.38 per diluted share compared to $90.2 million or $1.20 per diluted share in the second quarter of 2015 and $92.2 million or $1.27 per diluted share in the first quarter of 2016.

2016 年第二季Reliance 歸屬淨利為1.009 億美元，即稀釋後每股收益1.38 美元，而2015 年第二季歸屬於Reliance 的淨利為9,020 萬美元，即稀釋後每股收益1.20 美元，2016年第一季歸屬於Reliance 的淨利潤為9,220 萬美元，即稀釋後每股收益1.27 美元。

Our non-GAAP earnings were $1.36 per diluted share, which was above our expectations mainly because of our stronger than anticipated gross profit margin.

我們的非公認會計準則每股攤薄收益為 1.36 美元，高於我們的預期，主要是因為我們的毛利率高於預期。

And this compares to $1.21 per diluted share in the second quarter of 2015 and $1.03 per diluted share in the first quarter of 2016.

相比之下，2015 年第二季稀釋後每股收益為 1.21 美元，2016 年第一季稀釋後每股收益為 1.03 美元。

And please refer to our earnings release issued earlier today for a reconciliation of our non-GAAP adjustments.

請參閱我們今天稍早發布的收益報告，以了解我們的非公認會計準則調整的調節情況。

Now turning to our balance sheet and cash flow, we generated $49.8 million of cash from operations during the second quarter of 2016 and $205.2 million during the first half of 2016.

現在轉向我們的資產負債表和現金流，我們在 2016 年第二季度從營運中產生了 4,980 萬美元的現金，在 2016 年上半年產生了 2.052 億美元。

Given both increased metal pricing and increased demand, we used cash to build working capital by $109 million in the first half of 2016.

鑑於金屬價格上漲和需求增加，我們在 2016 年上半年使用現金增加了 1.09 億美元的營運資金。

However, our higher gross profit margin produced cash in excess of our working capital needs with $174.7 million of additional gross profit dollars resulting from the margin expansion in the first half of 2016 compared to the first half of 2015.

然而，我們更高的毛利率產生的現金超出了我們的營運資金需求，與 2015 年上半年相比，2016 年上半年的利潤率擴張帶來了 1.747 億美元的額外毛利。

Our inventory turn rate at June 30 was 4.7 times, or 2.6 months on hand based on tons.

截至 6 月 30 日，我們的庫存週轉率為 4.7 倍，即以噸計算，現有庫存週轉率為 2.6 個月。

Our successful efforts to reduce inventory in 2015 allowed us to reach our companywide inventory turn goal in 2016.

2015 年我們成功減少庫存，使我們能夠在 2016 年實現全公司的庫存週轉目標。

At June 30, 2016 our total debt outstanding was $2.17 billion and our net debt to total capital ratio was 33.4%.

截至2016年6月30日，我們的未償債務總額為21.7億美元，淨債務與總資本的比率為33.4%。

We had significant liquidity with $831.1 million available on our $1.5 billion revolving credit facility.

我們擁有大量流動資金，15 億美元的循環信貸額度中有 8.311 億美元可供使用。

We continue to execute our balanced capital allocation strategy of both growing the business and returning value to our stockholders.

我們持續執行平衡的資本配置策略，既發展業務又為股東回報價值。

In addition to the two acquisitions we have completed so far in 2016, we spent $71.7 million on capital expenditures during the first half of 2016 primarily on purchases of new equipment to increase our value added processing capabilities.

除了 2016 年迄今完成的兩項收購外，我們在 2016 年上半年花費了 7,170 萬美元的資本支出，主要用於購買新設備，以提高我們的增值處理能力。

Our 2016 CapEx budget remains unchanged at $180 million.

我們 2016 年的資本支出預算維持在 1.8 億美元不變。

In the first half of 2016 we paid our regular quarterly cash dividend totaling $58 million and we increased the quarterly dividend by 6.3% for the third quarter of 2016 to an annual rate of $1.70 per share, up $0.10 from our prior annual rate.

2016 年上半年，我們支付了總計5,800 萬美元的定期季度現金股息，並將2016 年第三季的季度股息提高了6.3%，達到每股1.70 美元的年利率，比之前的年利率增加了0.10美元。

Now turning to our outlook, we continue to believe the US economy is generally healthy and anticipate a continued slow recovery in demand subject to normal seasonal factors.

現在轉向我們的前景，我們仍然相信美國經濟總體健康，並預計需求將在正常季節性因素的影響下持續緩慢復甦。

We are optimistic that metal pricing is sustainable at current levels through the third quarter of 2016 and we are confident in our ability to execute well in this environment.

我們樂觀地認為，截至 2016 年第三季度，金屬定價在當前水準上可持續，並且我們對我們在這種環境下良好執行的能力充滿信心。

As a result we estimate tons sold to be down 1% to 3% in the third quarter of 2016 compared with the second quarter of 2016 due to normal seasonal factors.

因此，由於正常的季節性因素，我們預計 2016 年第三季的銷量將比 2016 年第二季下降 1% 至 3%。

We also expect our average selling price for tons sold in the third quarter of 2016 to be up approximately 1% to 3% from the second quarter of 2016 assuming current mill prices remain in place for the full quarter.

我們也預計，假設目前鋼廠價格在整個季度保持不變，2016 年第三季的平均售價將比 2016 年第二季上漲約 1% 至 3%。

As a result we currently expect non-GAAP earnings per diluted share to be in the range of $1.25 to $1.35 for the third quarter of 2016.

因此，我們目前預計 2016 年第三季非 GAAP 攤薄每股收益將介於 1.25 美元至 1.35 美元之間。

In closing, I would like to once again thank our managers in the field for their hard work and dedication to Reliance.

最後，我要再次感謝該領域的經理們的辛勤工作和對 Reliance 的奉獻。

Their successful execution of our strategy resulted in yet another quarter of FIFO gross margin expansion and strong financial results.

他們成功執行了我們的策略，導致 FIFO 毛利率又成長了一個季度，並取得了強勁的財務業績。

That concludes our prepared remarks.

我們準備好的演講到此結束。

Thank you for your attention and at this time we would like to open the call up to questions.

感謝您的關注，現在我們想開始電話提問。

Operator?

操作員？

(Operator Instructions).

（操作員說明）。

Tony Rizzuto, Cowen and Company.

托尼·裡祖托，考恩公司。

I just wanted to extend my heartiest congrats to both Dave on his long-term accomplishments while he was at the helm, and also to Mark too as he takes on the new role.

我只想向戴夫（Dave）在掌舵期間取得的長期成就致以最衷心的祝賀，同時也向馬克（Mark）就任新職位表示祝賀。

So wishing you guys both all the best.

祝你們一切順利。

So Gregg, Karla and team, excellent progress, a number of areas.

所以格雷格、卡拉和團隊在很多方面都取得了出色的進步。

I think we were most impressed by the continued ability that you guys are capturing market share.

我認為，給我們留下最深刻印象的是你們持續佔領市場份額的能力。

You have had six consecutive quarters of gross profit margin improvement.

您的毛利率已連續六季提高。

It is got to be disappointing when your shares are down 5% on a day you report results like this.

當你的股價在你報告這樣的業績的那天下跌 5% 時，你一定會感到失望。

And it would seem to indicate that there is some skepticism out there about the sustainability of these achievements.

這似乎表明人們對這些成就的可持續性存在一些懷疑。

And I was wondering, first of all, if you could provide your thoughts on this.

首先，我想知道您是否可以就此發表您的想法。

And then maybe to how we should think about your gross margin a little bit more in a granular manner as we move forward.

然後也許我們應該如何在前進的過程中更詳細地考慮您的毛利率。

You said that you kind of finished the quarter with inventories where they are.

您說您在本季結束時庫存狀況保持在原位。

So how should we think about that?

那我們該如何思考呢？

Then I have got some other questions too.

然後我還有其他一些問題。

Well, Tony, obviously we are very pleased with the 31.1% and six consecutive quarters of increased gross profit margin.

嗯，托尼，顯然我們對毛利率連續六個季度增長 31.1% 感到非常滿意。

There has been a tremendous amount of time and effort put forth, not only backed by our people in the field but certainly by our operators here in this office.

我們投入了大量的時間和精力，不僅得到了我們現場人員的支持，也得到了我們辦公室操作人員的支持。

And we couldn't be more proud of their accomplishments.

我們為他們的成就感到無比自豪。

I think we mentioned on our last call about the sustainability issue, which is a legitimate question -- very legitimate.

我認為我們在上次電話會議中提到了永續發展問題，這是一個合理的問題——非常合理。

But with six quarters of increases I think we guided last time to the 28% range, thinking with the prices going up but still a little questionable that maybe that would be more prudent to go in that direction.

但隨著六個季度的增長，我認為我們上次的指導價是 28% 的範圍，考慮到價格上漲，但仍然有點疑問，也許朝著這個方向走會更謹慎。

And then we increased it by 1.7% above that.

然後我們將其提高了 1.7%。

So [above] the 29.4% that we finished the second quarter -- the first quarter with.

因此，[高於]我們第二季（即第一季）結束時的 29.4%。

So obviously we kind of missed the gun on that one.

很明顯我們有點錯過了那把槍。

But I wouldn't guide to 31% or do my modeling on that.

但我不會指導 31% 或以此為基礎進行建模。

And maybe we can get a couple thoughts from Karla on that.

也許我們可以從卡拉那裡得到一些對此的想法。

Yes, I guess first, Tony, on the stock price, certainly it is disappointing when we execute the way we do to see the stock price go down.

是的，托尼，我想首先是關於股價，當我們執行我們的方式來看到股價下跌時，當然會令人失望。

But we are confident that everyone will realize that we deserve a higher stock price and we will see it go back up.

但我們相信，每個人都會意識到我們值得更高的股價，並且我們會看到它回升。

On the gross profit standpoint and the sustainability, as you know, we have been conservative, we typically are conservative.

從毛利和永續性的角度來看，如你所知，我們一直很保守，我們通常很保守。

But we have seen very good progress for all the different reasons Gregg had in his comments.

但由於格雷格在評論中提出的各種不同原因，我們已經看到了非常好的進展。

And in the second quarter we did get a little bit of a lift because mills were announcing price increases mainly on carbon steel products.

在第二季度，我們確實得到了一點提振，因為鋼廠宣布主要是碳鋼產品的價格上漲。

And as we have done consistently in periods of rising prices, we are typically able to expand our gross profit margin when the prices are announced before we get the higher cost inventory in.

正如我們在價格上漲時期一貫所做的那樣，當價格在我們獲得更高成本的庫存之前公佈時，我們通常能夠擴大我們的毛利率。

So we do believe there was a little extra expansion in the second quarter because of the timing of the price increases.

因此，我們確實相信，由於價格上漲的時機，第二季會有一些額外的擴張。

In the third quarter, assuming mill pricing remains flat, as we start to receive in our higher cost metal we do believe we will see a bit of compression from the 31.1% margin that Gregg talked about.

在第三季度，假設鋼廠定價保持不變，當我們開始接收成本較高的金屬時，我們確實相信我們會看到格雷格談到的 31.1% 的利潤率有所壓縮。

But we do believe our gross profit margins are certainly sustainable at a higher level than the 25% to 27% we had talked about previously because of all the good things we have done with pricing, additional value add processing, good inventory management, etc.

但我們確實相信，由於我們在定價、附加增值處理、良好的庫存管理等方面所做的所有好事，我們的毛利率肯定可以維持在高於我們之前談到的 25% 至 27% 的水平。

Right, that is a bit of a wide range there, you could drive a Class [E] truck through there a little bit (laughter) 25% to 27% to 31%.

是的，這個範圍有點寬，你可以駕駛 [E] 級卡車穿過那裡（笑聲）25% 到 27% 到 31%。

But let's maybe perhaps look at it.

但讓我們也許看看它。

So if we are maybe assuming that pricing is -- may be some possibility of retracement, not a collapse but maybe taking that into account and looking at what is structurally changed with your gross margin, maybe that is a way to look at it.

因此，如果我們假設定價可能會出現回調，而不是崩潰，但也許考慮到這一點並考慮毛利率的結構性變化，也許這是一種看待它的方式。

I mean are we talking about a possibility of closer to 28% to 30% versus that type of level.

我的意思是，我們談論的是接近 28% 到 30% 的可能性，而不是那種程度。

Just trying to figure out of that how much of a boost.

只是想弄清楚這有多大的提升。

You mentioned a bit of a boost and I hate to split hairs on this, but it is obviously very important.

你提到了一點提升，我不想對此吹毛求疵，但這顯然非常重要。

Yes, I think, Tony, if you look at our first quarter of this year we were at 29.4% FIFO gross profit margin, which didn't have that margin expansion from the mill price increases during the quarter.

是的，我想，東尼，如果你看看我們今年第一季的先進先出毛利率，我們的毛利率是 29.4%，該季度並沒有因工廠價格上漲而導致利潤率擴張。

I think the current environment hasn't changed.

我認為目前的環境沒有改變。

We are still feeling good like we were in the first quarter.

我們仍然像第一季一樣感覺良好。

So I think probably something close to the first-quarter number is reasonable for the third quarter.

所以我認為第三季接近第一季的數字可能是合理的。

Okay, okay, that is very helpful.

好吧好吧，這很有幫助。

And what can you tell us about your willingness or unwillingness to perhaps buy more foreign material?

關於您是否願意或不願意購買更多外國材料，您能告訴我們什麼嗎？

Obviously we are beginning to hear reports of obviously the widening spreads out there for some products.

顯然，我們開始聽到有關某些產品的價差明顯擴大的報導。

And with inventories seemingly quite low across the board, what can you tell us about the attractiveness of foreign material and your view towards possibly changing your behavior?

由於庫存似乎全面較低，您能告訴我們關於外國材料的吸引力以及您對可能改變您的行為的看法嗎？

Tony, I think our behavior is one of the main reasons why our margins have improved to the extent that they have.

東尼，我認為我們的行為是我們的利潤率提高到目前水平的主要原因之一。

We turn our inventories -- whenever we turn our inventories effectively we get a kick on our margins because we don't have to chase truckload quantities of material at low margins just to blow out inventory.

我們週轉我們的庫存——只要我們有效地週轉我們的庫存，我們的利潤就會得到提升，因為我們不必為了耗盡庫存而以低利潤追逐卡車數量的材料。

We have been doing that in the last six quarters and if we brought in foreign material it would expand our inventories and probably put us into a position where we would chase some of those orders that we choose to walk away from today.

我們在過去的六個季度中一直在這樣做，如果我們引入外國材料，就會擴大我們的庫存，並可能使我們陷入這樣的境地：我們會追逐一些我們今天選擇放棄的訂單。

So I think our position of keeping as much domestic material here by way of purchases has served us very well.

因此，我認為我們透過購買的方式保留盡可能多的國內材料的立場對我們很有幫助。

I mean we could go out in the market and buy foreign material and go chase orders and increase our tons and make certain people that follow our stock happy because our tons are going up and all this other stuff.

我的意思是，我們可以去市場購買外國材料，追逐訂單，增加我們的噸位，讓某些關注我們庫存的人感到高興，因為我們的噸位正在上漲，以及所有其他東西。

But we wouldn't have anything to show for it.

但我們不會有任何東西可以展示。

There wouldn't be anything on the bottom line improvement that we have seen thus far with our increase in our gross profit margin.

到目前為止，隨著毛利率的提高，我們的利潤不會有任何改善。

So I think our model of keeping our purchases domestically to the extent that we have, which is about 95% of what we buy is produced in North America, has served us very, very well.

因此，我認為我們在現有範圍內保持國內採購的模式（大約 95% 的採購是在北美生產的）對我們非常非常有利。

And I don't see any reason to move astray from that.

我認為沒有任何理由偏離這一點。

Yes, some of the spreads are pretty high.

是的，有些點差相當高。

But we have some very good relationships with the domestic producers and they are not going to let us get too far out of whack because if we lose position they lose position and that is a lose-lose proposition.

但我們與國內生產商有一些非常好的關係，他們不會讓我們陷入困境，因為如果我們失去地位，他們就會失去地位，這是一個雙輸的主張。

Hey, Tony, this is Jim.

嘿，東尼，這是吉姆。

Another point, one of our strategies for margins was our investment in the value added equipment.

另一點，我們的利潤策略之一是對加值設備的投資。

That is certainly still a strategy of ours.

這當然仍然是我們的策略。

Our budget was $180 million, it is still $180 million, we haven't spent anywhere near $180 million, we have got a long way to go.

我們的預算是 1.8 億美元，現在仍然是 1.8 億美元，我們還沒有花費接近 1.8 億美元的錢，我們還有很長的路要走。

So we have got more equipment coming in.

所以我們有更多的設備進來。

And as the quarters roll by we will be bringing that equipment online and be able to offer our customers more activity at better tolerances.

隨著季度的推移，我們將使該設備上線，並能夠以更好的容差為我們的客戶提供更多的活動。

So we hope it continues to play out like it has so far.

因此，我們希望它能像迄今為止一樣繼續發揮作用。

Do you -- all of you guys, I would be interested in hearing your thoughts.

你們所有人，我很想聽聽你們的想法。

Do you believe in the theory, are you buying the theory that because inventories -- we look at the MSCI data and certain product categories extremely low and the lowest we have seen in years.

你相信這個理論嗎？你相信這個理論嗎？因為我們看到摩根士丹利資本國際（MSCI）數據和某些產品類別的庫存極低，是我們多年來看到的最低水準。

Do you buy into the theory that inventories are so low and with demand relatively stable that there could be a pretty significant restock maybe in the fourth quarter?

您是否相信庫存如此之低且需求相對穩定以至於第四季度可能會出現相當大的補貨的理論？

Or do you just think it is kind of steady as she goes in terms of inventory behavior?

或者您只是認為她的庫存行為比較穩定？

Generally speaking now, obviously this is -- you have obviously done an excellent job.

現在總的來說，顯然這是——你顯然做得非常出色。

I am just asking you to think a little bit more broadly in terms of the service center industry.

我只是要求您對服務中心行業進行更廣泛的思考。

But, Tony, I don't think there is going to be a surge in purchases from service centers, quote/unquote, restocking.

但是，托尼，我認為從服務中心、報價/取消報價、補貨的採購量不會激增。

I think inventories are low, I think everybody has been keeping their inventories close to their vest.

我認為庫存很低，我認為每個人都在保守庫存。

I think that is the absolute right thing to do, that is certainly what we have done.

我認為這是絕對正確的事情，我們也確實這麼做了。

And I think there is some question as to this, quote/unquote, sustainability of some of the prices that are out there today.

我認為，目前的一些價格的報價/取消報價、可持續性存在一些問題。

Certainly there is fewer imports that are coming in, fewer offerings, although that is picking up just a little bit now.

當然，進口的商品減少了，供應的產品也減少了，儘管現在只是稍微回升。

But overall I think that people -- it will be more or less business as usual going through the second half of the year.

但總體而言，我認為人們在今年下半年或多或少會一切如常。

What do you guys think?

你們有什麼感想？

Do you agree with that?

你同意嗎？

I do.

我願意。

And probably the most important, Tony, is really speaking for our guys and we definitely will not be doing that.

東尼，最重要的可能是真正為我們的球員說話，我們絕對不會這樣做。

So I agree with Gregg.

所以我同意格雷格的觀點。

I don't think we are going to see any major restocking take place.

我認為我們不會看到任何大規模的補貨。

In my opinion, I mean when the kind of general consensus is prices are going up that is when people buy a little more.

在我看來，我的意思是，當普遍共識是價格上漲時，人們就會多買一點。

If there is a gut feel or somebody thinks the pricing may come down a hair or more imports come in people take a little bit of a pause and they want their dollar.

如果有一種直覺，或者有人認為價格可能會下降一點，或者更多的進口商品進來，人們就會稍稍停頓一下，他們想要美元。

So we have seen -- we can only control 62 companies, we don't know about the rest of them out there, they are going to do what they are going to do.

所以我們看到——我們只能控制 62 家公司，我們不知道其餘公司的情況，他們將做他們將要做的事情。

But if you look at the MSCI numbers I think the inventory is in pretty good shape right now and there is really no pressing reason to screw that up.

但如果你看一下摩根士丹利資本國際 (MSCI) 的數據，我認為目前庫存狀況相當不錯，而且確實沒有迫切的理由去搞砸。

Right.

正確的。

Listen, final question for Bill and I am going to turn it over then.

聽著，比爾的最後一個問題，我將把它轉過來。

So the recent affirmation against the Chinese and stainless flats, how positive an impact is that for you guys?

那麼最近針對中國和不銹鋼板材的肯定，這對你們來說有多大的正面影響？

Tony, I think that is going to be very positive.

托尼，我認為這將是非常積極的。

I think we will see the Chinese back away from this market and I think that should be very positive for the domestic guys.

我認為我們會看到中國人退出這個市場，我認為這對國內人來說應該是非常正面的。

And, as you know, demand has been good there and I think that will be very positive from a pricing standpoint.

而且，如您所知，那裡的需求一直很好，我認為從定價的角度來看，這將是非常積極的。

Has your competitor who is getting out of the market, have they liquidated their inventory at this point?

您的競爭對手是否正在退出市場，他們是否已經清算了庫存？

I am not sure about that, Tony.

我對此不太確定，東尼。

I don't think we can comment on that.

我認為我們不能對此發表評論。

Yes.

是的。

No worries.

不用擔心。

All right, thanks, thanks for much, all.

好的，謝謝，非常感謝，大家。

Jorge Beristain, Deutsche Bank.

豪爾赫·貝里斯坦，德意志銀行。

Thanks, guys, I appreciate Tony taking the lead there (laughter).

謝謝，夥計們，我很感謝托尼帶頭（笑聲）。

I guess I just have a few questions remaining (laughter).

我想我只剩下幾個問題了（笑聲）。

Karla, my question is kind of sort of the flipside of what Tony's question was earlier.

卡拉，我的問題有點與托尼之前的問題相反。

We did see the gross margin expansion of 170 basis points quarter on quarter.

我們確實看到毛利率環比增長了 170 個基點。

Yet average selling prices were actually disappointingly a bit low.

然而，平均售價其實有點低，令人失望。

And so what I am trying to figure out is, were you fully able to affect as quickly as you say and as fully across your carbon steels the price hikes?

所以我想弄清楚的是，你們是否完全能夠像你們所說的那樣迅速、全面地影響你們碳鋼的價格上漲？

Or could there be a little bit still in the kitty into the second half?

或者說下半場可能還有一點靜止的感覺？

And then also what about other later cycle metals that we are starting to see move up in non-carbon like aluminum and stainless?

那我們開始看到鋁和不銹鋼等其他非碳金屬的價格上漲又如何呢？

Are you seeing any kind of -- I think you touched on that in your comments earlier, but some second half momentum there where maybe average selling prices will not fall as much as list prices as they start to correct?

你是否看到任何一種——我想你在早些時候的評論中談到了這一點，但下半年的一些勢頭可能是平均售價在開始修正時不會像標價那樣下跌？

So that is my question.

這就是我的問題。

Yes, morning, Jorge.

是的，早安，豪爾赫。

So I think from the average selling price not going up as much as we had anticipated, if you do break it down by commodity, most of the price increases were on the carbon steel products and our carbon steel average sale price per ton was up 2.6%.

所以我認為，從平均銷售價格沒有像我們預期的那樣上漲，如果按商品細分，大部分價格上漲是在碳鋼產品上，我們的碳鋼每噸平均銷售價格上漲了2.6 %。

What did happen during the quarter was our average inventory cost on hand continued to trend down a bit because we were still receiving in some of the lower cost inventory that we had ordered previously.

本季發生的情況是，我們現有的平均庫存成本持續略有下降，因為我們仍在收到先前訂購的一些成本較低的庫存。

So, I think we got the spread that we expected to get based upon the price increases that were out there, it was just off of a lower base than we had anticipated.

所以，我認為我們得到了我們預期的基於價格上漲的價差，它的基數比我們預期的要低。

So that is where we talked about in Q3 we think our average inventory cost will start to go up a bit as we receive in some of that higher cost inventory.

這就是我們在第三季談到的地方，我們認為我們的平均庫存成本將開始略有上升，因為我們收到了一些成本較高的庫存。

We might give up a little bit of that carbon margin spread from the price increases but we still expect the margins to be very healthy and for us to sustain our margin on those.

我們可能會放棄一些因價格上漲而產生的碳利潤差，但我們仍然預期利潤率將非常健康，並且我們能夠維持這些利潤率。

So, I think it was really the cost going down that caused our average sell price to not be up as much as we thought it would over the first quarter.

因此，我認為實際上是成本下降導致我們的平均售價沒有我們想像的第一季上漲那麼多。

And to your point about the other products, yes, during the second quarter compared to the first quarter the other commodities, aluminum, stainless, alloy, we saw average sell prices down.

至於您對其他產品的觀點，是的，與第一季相比，其他商品（鋁、不銹鋼、合金）在第二季的平均售價有所下降。

There are some reasons out there that we might see some increases in those in the back half which could help us in those products as we pass through those price increases.

由於某些原因，我們可能會看到下半年的價格上漲，這可能會在我們經歷價格上漲時幫助我們生產這些產品。

Yes, particularly on stainless.

是的，尤其是不銹鋼。

I think we have the opportunity there where surcharges, we expect those to go up in the second half.

我認為我們有機會增加附加費，我們預計下半年附加費會上漲。

And then I think there is a good possibility we will see a base price increase sometime in the second half.

然後我認為我們很可能會在下半年的某個時候看到基本價格上漲。

We have had a couple base price increases already first half of the year.

今年上半年我們已經進行了幾次基本價格上漲。

Right.

正確的。

So, I thought that reading those trade cases on China -- okay, I know that Bill was having somewhat of a party (multiple speakers) (laughter) that could be a game changer.

所以，我認為閱讀那些關於中國的貿易案例——好吧，我知道比爾正在舉辦一場聚會（多個演講者）（笑聲），這可能會改變遊戲規則。

Yes could be, absolutely.

是的，絕對可以。

Great, thank you for the full response.

太好了，感謝您的完整回覆。

Just one second follow-up.

只需一秒鐘的跟進。

Just on the aluminum, you mentioned that you are basically making better margin on tolling.

就鋁而言，您提到您基本上在收費方面獲得了更好的利潤。

Could you just give us a kind of sense as to, with your aerospace exposure now at 11%, should we be expecting you to be growing sort of in-line with the build rate for aircraft going forward?

您能否給我們一種感覺，鑑於您的航太業務目前佔 11%，我們是否應該期望您的成長與未來飛機的建造速度保持一致？

Or are you expecting an above build rate growth average just because you are kind of winning market share?

或者您是否僅僅因為贏得了市場份額就期望構建率高於平均水平？

Just if you could just talk about that.

如果你能談談這個就好了。

Yes, on the aerospace side, we still think we will see growth in the second half.

是的，在航空航天方面，我們仍然認為下半年會看到成長。

And so, our outlook is still positive.

因此，我們的前景仍然樂觀。

The build rate changes that have been announced, I think we are seeing a little bit of an impact there.

已經宣布的構建率變化，我認為我們看到了一些影響。

When we look at mill lead times, those have compressed just a bit.

當我們觀察工廠的交貨時間時，會發現這些時間已經壓縮了一點。

But that is still very dependent on what programs you are supporting.

但這仍然很大程度上取決於您支持的計劃。

And for our guys, our outlook is still positive and we think we will still see improvement from a demand standpoint in the second half.

對於我們的員工來說，我們的前景仍然樂觀，我們認為從下半年的需求角度來看，我們仍然會看到改善。

Okay, thanks very much.

好的，非常感謝。

Phil Gibbs, KeyBanc Capital Markets.

Phil Gibbs，KeyBanc 資本市場。

Hey, Bill, I had a question on the aerospace side as well in terms of the more moderate growth you are talking about.

嘿，比爾，我還有一個關於航空航天方面的問題，以及你所說的更溫和的增長。

What is that really keyed off of?

那到底是什麼？

Really, Phil, we are just looking at the programs we have, looking at the demand that we saw through the first half.

真的，菲爾，我們只是關注我們現有的計劃，關注我們在上半年看到的需求。

And we think we are going to see that continue.

我們認為這種情況將會持續下去。

When we say moderated growth it may not be at the same growth rate but we still see it as positive in the second half.

當我們說成長放緩時，成長率可能有所不同，但我們仍然認為下半年成長是正面的。

How much have the lead times in general for the aerospace heat treat plate come in relative to maybe three months ago?

與三個月前相比，航空航太熱處理板的交貨時間整體縮短了多少？

They come in like one to two weeks, Phil.

菲爾，他們大約需要一到兩週的時間。

So overall we have seen that -- when I said they have compressed a bit, I am really referring to a kind of a one to two week time frame.

所以總的來說，我們已經看到——當我說他們壓縮了一點時，我實際上指的是一種一到兩週的時間框架。

Okay, I appreciate that.

好的，我很欣賞。

And, Jim, on the energy side I believe there were some comments about a little bit of light coming out of the darkness in the press release.

吉姆，在能源方面，我相信新聞稿中有一些關於從黑暗中發出一點光的評論。

Anything that you could comment on in terms of what you are seeing and what the allusion to was there?

您可以就您所看到的內容以及其中暗示的內容發表評論嗎？

Yes.

是的。

When you have been down like this for a long period of time just a little bit makes you feel good.

當你像這樣情緒低落很長一段時間時，只要一點點就能讓你感覺良好。

So just the quoting activity has come up a little bit.

所以只是報價活動出現了一些。

The feet drilled came up a little bit.

鑽出來的腳稍微上揚了一點。

There is been a couple of announcements where some of the big boys announced that they are going to release some CapEx dollars.

一些大公司宣布他們將釋放一些資本支出。

And we are seeing better quoting activity.

我們看到報價活動有所改善。

So that is what I mean by a little light at the end of the tunnel.

這就是我所說的隧道盡頭的一點曙光的意思。

Perfect.

完美的。

And any sense you could give us as to how much inventory that still needs to be churned through maybe relative to the current rate count levels?

您能否告訴我們，相對於當前的費率計數水平，仍然需要攪拌多少庫存？

And when we are through the kind of mopping up some of the excess pipe and tube and bar products?

當我們清理一些多餘的管材和棒材產品？

I mean if I understand your question properly, our inventory is in okay shape.

我的意思是，如果我正確理解你的問題，我們的庫存狀況良好。

We kind of got on this early before it started really coming down.

在事情開始真正惡化之前，我們就很早就開始了。

So we took a lot of inventory out before it really started crashing.

因此，在它真正開始崩潰之前，我們就清空了大量庫存。

I am not going to tell you we don't have some excess A items.

我不會告訴你我們沒有多餘的 A 物品。

But they are A items and we know they are going to come back.

但他們是一流的產品，我們知道他們會回來的。

So we keep them in line.

所以我們讓他們保持一致。

We are not going to increase our inventories, we don't need to.

我們不會增加庫存，也沒有必要。

If the business came back X amount a percent we would be able to absorb those orders without adding any expense and without adding a whole lot of inventory, to tell you the truth.

說實話，如果業務恢復 X %，我們將能夠吸收這些訂單，而無需增加任何費用，也無需增加大量庫存。

And you know we have been pleasantly surprised, okay, that the producers -- we would have expected alloy pricing to go down much greater than it actually did.

你知道，我們對生產商感到驚喜，我們本來預計合金價格的下降幅度比實際下降幅度要大得多。

In large part that is because automotive has been so strong.

這在很大程度上是因為汽車業如此強大。

So there has been a lot of alloy being consumed in that market.

因此，該市場消耗了大量合金。

But we think the suppliers have exercised some very prudent discipline on the pricing side.

但我們認為供應商在定價方面採取了一些非常謹慎的紀律。

So we haven't seen the major price discounts that normally you would expect to see when business is down 40%-50%.

因此，我們還沒有看到業務下滑 40%-50% 時通常會出現的大幅價格折扣。

Yes and just the product itself, SBQ bar, the S stands for special, it is hard to make.

是的，只是產品本身，SBQ吧，S代表特殊，很難製作。

There is not a whole lot of players in the game.

遊戲中的玩家並不多。

Heavy wall tubing, those are very high quality products and thankfully, to Gregg's point, they really haven't come down as much as they could.

厚壁管材是非常高品質的產品，值得慶幸的是，對於格雷格來說，它們確實還沒有達到應有的程度。

I appreciate all the color.

我欣賞所有的顏色。

I just have a housekeeping one for Karla and I will jump off.

我只為卡拉準備了一份家事服務，然後我就跳下去。

Was your -- your tax rate guidance for the year, was that on a GAAP basis?

今年的稅率指引是基於公認會計準則（GAAP）嗎？

Yes.

是的。

Okay.

好的。

Thanks so much.

非常感謝。

Aldo Mazzaferro, Macquarie.

阿爾多·馬扎費羅，麥格理。

Good morning, Karla and gentlemen.

早安，卡拉和先生們。

I was just wondering about the demand side a little bit more.

我只是想多了解需求方面的情況。

Gregg, I think you said in your initial comments that when you made your first guidance for the second quarter you had a view of demand that came in a little bit weaker than you thought.

格雷格，我想您在最初的評論中說過，當您對第二季度做出第一份指導時，您對需求的看法比您想像的要弱一些。

I wonder could you specify a little bit about where those sectors were in terms of they came in a little weaker or was it generally across the board?

我想知道您能否具體說明這些產業的具體情況，是它們的表現稍弱，還是整體而言？

It was generally across the board.

總體而言，這是全面的。

But it was fairly much in line.

但這是相當一致的。

I think we were up 1.1% --.

我認為我們上漲了 1.1%——。

Yes, I think out of Gregg's comment that you are talking about was more about 2016 in general compared -- for the first half.

是的，我認為從 Gregg 的評論來看，您所談論的更多是與 2016 年上半年相比。

Second quarter was in line.

第二季符合預期。

But earlier in the year we thought 2016 was going to be a little bit stronger than we have seen it playing out.

但今年早些時候，我們認為 2016 年的情況會比我們看到的要強一些。

Yes, when we were starting (multiple speakers) good point.

是的，當我們開始（多個發言者）時，這是個好點。

When we were going into 2016 our outlook was a little bit more positive than what it turned out.

當我們進入 2016 年時，我們的前景比結果要樂觀一些。

In the second quarter I think we were up in tons 1.1% over first quarter, which was in line with our guidance at zero to flat to 2%.

我認為第二季我們比第一季成長了 1.1%，這符合我們從零到持平到 2% 的指導。

So there wasn't really any big surprise there.

所以這並沒有什麼大的驚喜。

Non-res came in just about where we thought it would.

非資源的出現正好符合我們的預期。

We have seen some improvement there.

我們已經看到了一些改進。

The heavy equipment, basically no big surprises there at all.

重裝，基本上沒有什麼大的驚喜可言。

Aerospace is doing well.

航空航太業表現良好。

Automotive and toll processing is doing extremely well.

汽車和來料加工業務表現非常出色。

And as Jim mentioned in his comments, we just opened up a new facility down in Monterrey, Mexico; just had our opening day ceremonies on July 12.

正如吉姆在評論中提到的，我們剛剛在墨西哥蒙特雷開設了一家新工廠； 7 月 12 日剛舉行了開幕典禮。

So we are really upbeat about that particular one.

所以我們對這特定的情況非常樂觀。

We put a brand-new splitter in place in our Michigan operation, that was commissioned in April.

我們在密西根州的工廠安裝了一台全新的分離器，該分離器已於四月投入使用。

So we are anticipating more growth there.

因此，我們預計那裡會有更多成長。

We broke ground in Kentucky just recently in the last 30 days and expect to have a facility there operational to support the automotive industry that are moving into the, quote/unquote, Louisville area.

過去 30 天內，我們剛剛在肯塔基州破土動工，預計在那裡有一座設施投入運營，為即將進入路易斯維爾地區的汽車行業提供支援。

And that should be open and running sometime in the second quarter of 2017.

該專案應該會在 2017 年第二季的某個時候開放並運行。

So we are seeing -- there has been really no industry that has surprised us.

所以我們看到——實際上沒有哪個行業讓我們感到驚訝。

We thought it might be a little bit stronger than it actually is, we are continuing to make investments like the ones that I just described.

我們認為它可能比實際情況要強一些，我們正在繼續進行像我剛才描述的那樣的投資。

And those investments are paying off quite well.

這些投資得到了很好的回報。

So with those investments you go to your people and you say, we need to pay for those investments.

因此，透過這些投資，你去找你的員工，你說，我們需要為這些投資買單。

This $180 million that we have been spending basically every year for the past five years, damn near $900 million in the last five years, we want to get paid for that stuff.

在過去的五年裡，我們基本上每年都會花費這 1.8 億美元，過去五年接近 9 億美元，我們希望為這些東西獲得報酬。

And we don't see our competition, very honestly, pouring as much money in CapEx spending, so that tells us that our tolerances are superior, okay, the finished parts are better and we want to get paid for it.

老實說，我們沒有看到我們的競爭對手在資本支出上投入那麼多錢，所以這告訴我們，我們的公差是優越的，好吧，成品零件更好，我們希望為此獲得報酬。

So that is the message that we have given to our four op guys and they have set the guidelines for the people in the field who ultimately are the ones that execute the plan.

這就是我們向四位營運人員傳達的訊息，他們為現場人員制定了指導方針，而他們最終是執行該計劃的人。

So no big changes, Aldo.

所以沒有大的變化，奧爾多。

Yes, Aldo, I think when we came into the year we were -- after the fourth quarter when we talked to you guys in February we were anticipating that our volumes might be up a couple percentage points for the 2016 year compared to 2015.

是的，Aldo，我認為當我們進入這一年時——在 2 月與你們交談的第四季度之後，我們預計 2016 年的銷量可能會比 2015 年增加幾個百分點。

But we have seen the overall demand down.

但我們看到整體需求下降。

So, at Reliance we are done only 2.1% in tons sold; on a same-store basis for the first half of the year the industry is down 6.9%.

因此，在 Reliance，我們只完成了售出噸數的 2.1%；以同店計算，上半年該行業下降了6.9%。

So we think we are definitely doing well given the overall demand environment we are in.

因此，考慮到我們所處的整體需求環境，我們認為我們肯定做得很好。

And we are kind of out beating the industry even with our higher gross profit margins we are achieving because of those reasons Gregg talked about.

由於格雷格談到的這些原因，即使我們實現了更高的毛利率，我們還是擊敗了整個產業。

Great and thank you.

太棒了，謝謝。

Just a quick follow-up.

只是快速跟進。

I know you answered a lot of questions already.

我知道你已經回答了很多問題。

But on stainless steel specifically, are you anticipating any price gains in the second half from the tariffs that were announced on a preliminary basis?

但具體到不銹鋼方面，您是否預計下半年價格會因初步宣布的關稅而上漲？

Yes, Aldo, I think we said that, that we do think there is a very good potential for a price increase in the second half.

是的，奧爾多，我想我們說過，我們確實認為下半年價格上漲的潛力很大。

And we also think that we will see continued increases on the surcharge side based on nickel pricing too.

我們也認為，基於鎳價的附加費也將持續上漲。

Right.

正確的。

Okay, thanks very much.

好的，非常感謝。

Timna Tanners, Bank of America Merrill Lynch.

坦納斯 (Timna Tanners)，美銀美林。

I just had two left.

我只剩下兩個了

And I know we have probed the oil and gas end market and I know we have probed aerospace, but I just wanted to touch on the automotive industry and was really interested in the new facilities and capacity you were talking about.

我知道我們已經探索了石油和天然氣終端市場，我知道我們已經探索了航空航天，但我只是想談談汽車行業，並且對您所說的新設施和產能非常感興趣。

Our automotive car parts are starting to get a little bit more cautious in terms of the outlook, not negative but just maybe closer to a peak.

我們的汽車零件對前景開始變得更加謹慎，不是消極的，而是可能接近峰值。

And I was wondering if you have any contracts or maybe if you are more on the aluminum side or what gives you the confidence in adding capacity at this point in the market?

我想知道你們是否有任何合同，或者你們是否更傾向於鋁業，或者是什麼讓你們有信心在目前的市場上增加產能？

Timna, this is Jim.

提姆納，這是吉姆。

I have always said when you are speeding down the highway going 85 miles an hour and you slow down to 70 you are still speeding.

我總是說，當你在高速公路上以每小時 85 英里的速度行駛時，如果你減速到 70 英里，你仍然在超速。

The automotive count is still in excess of 17 million.

汽車保有量仍超過1700萬輛。

I think I read an article the other day where they adjusted their 2017 build down from 17.7 to 17.4, that is still a lot of activity.

我想我前幾天讀過一篇文章，他們將 2017 年的構建從 17.7 調整到 17.4，這仍然是很多活動。

And a lot of our activity happens to be in the light truck and the kind of medium duty trucks.

我們的許多活動恰好是在輕型卡車和中型卡車上進行的。

And everything we see and the folks we deal with are telling us that the build rates are exactly what we thought they were going to be.

我們所看到的一切以及與我們打交道的人都在告訴我們，建造速度正是我們所預期的。

So, we don't see in the foreseeable future any real issues.

因此，在可預見的未來，我們看不到任何真正的問題。

Those are tremendous numbers.

這些都是龐大的數字。

But, Timna, even if the build rates for autos stay where they are, a lot of our investments are going into the shift from carbon to aluminum and processing a lot more aluminum.

但是，蒂姆納，即使汽車的製造率保持不變，我們的大量投資也將用於從碳到鋁的轉變，並加工更多的鋁。

So that is why we are very bullish and see our piece of that market increasing because of that shift to aluminum that we are (multiple speakers).

這就是為什麼我們非常看好並看到我們在該市場的份額不斷增加，因為我們轉向了鋁（多個揚聲器）。

And those (multiple speakers).

還有那些（多個發言者）。

Basically the investments, Timna, that we have made in the United States, so the Kentucky operation, the splitter that went into Michigan and our new plant in Michigan which was April of last year and a new one -- new piece of equipment that was commissioned in April of this year, those three operations are all centered around aluminum going into light trucks.

基本上是我們在美國進行的投資，蒂姆納，肯塔基州的業務，進入密西根州的分離器以及我們去年四月在密西根州的新工廠和一個新的設備——新的設備這三個工廠今年4 月投入使用，全部以輕量卡車鋁材為主。

The one in Mexico that we are opening in Monterey is not necessarily aluminum related, but we are at capacity in our plant down there.

我們在墨西哥蒙特利開設的工廠不一定與鋁有關，但我們在那裡的工廠已經達到產能。

So we needed to either add on or get closer to Monterey; we decided to get closer to Monterey for logistic purposes.

所以我們需要增加或靠近蒙特利；出於物流目的，我們決定靠近蒙特雷。

So that was put in there not necessarily for aluminum.

所以放在那裡的不一定是鋁。

Although the piece of equipment that we put into Monterey, Mexico is designed to be able to do light gauge aluminum going into automotive.

儘管我們在墨西哥蒙特雷投入的設備旨在能夠生產汽車用的輕型鋁。

So the majority of what you are seeing, especially in the United States, is actually being put in place because of the switch from carbon steel to aluminum.

因此，您所看到的大部分情況，尤其是在美國，實際上是由於從碳鋼轉向鋁而實施的。

And one other thing to remember, Timna, we process a lot of steel that goes into the appliance industry as well.

另一件要記住的事情是，Timna，我們加工的大量鋼材也進入了家電行業。

And that is strong as well.

這也很強大。

Okay, that makes a lot of sense.

好吧，這很有道理。

Thanks for that answer.

謝謝你的回答。

The only other question I had for now is just in terms of the guidance I wanted to clarify, because you made the comment here assuming current mill prices remain in place for the full quarter.

我現在唯一的其他問題只是我想澄清的指導意見，因為您在這裡發表評論時假設當前的工廠價格在整個季度保持不變。

And I am not as sophisticated on how long products are priced on the carbon steel side.

我不太清楚碳鋼產品的定價時間有多長。

So I was just wondering is that already baking in the recent declines in scrap prices.

所以我只是想知道最近廢鋼價格的下跌是否已經開始加劇。

Or any declines that may result from what is happening in Turkey and the weakness there or what scrap price might that be baking in when you talk about current mill prices?

或者土耳其的情況和疲軟可能導致的任何下降，或者當您談論當前的鋼廠價格時，廢鋼價格可能會受到怎樣的影響？

Yes, I think we didn't put anything in specifically because of what is going on in Turkey or pull it down.

是的，我認為我們沒有因為土耳其正在發生的事情而專門添加任何內容或將其取消。

So kind of the general prices.

一般價格就這樣。

Remember we have got a very broad product mix.

請記住，我們擁有非常廣泛的產品組合。

And scrap certainly impacts many of our products but I think we are still kind of consistent with where prices have been over the last three to four weeks in our guidance.

廢品肯定會影響我們的許多產品，但我認為我們仍然與過去三到四周指導中的價格保持一致。

Yes, and the scrap is going to probably have more of an impact on the mini mill product -- the long products that you are referring to.

是的，廢料可能會對短流程產品（您所指的長材產品）產生更大的影響。

But they have pretty good discipline in those products through the years.

但多年來他們在這些產品上有相當好的紀律。

And they may go down, we are not anticipating that they will.

它們可能會下降，但我們預計不會。

But even if they do they are not going to go down, in our opinion, significantly or dramatically that is going to make any impact on us one way or the other.

但即使他們這樣做了，我們認為也不會顯著或顯著地下降，這將以某種方式對我們產生任​​何影響。

So we are not overly concerned about that.

所以我們對此並不過度擔心。

But it wouldn't shock us, but right now we are of the opinion that it is going to remain fairly flat.

但這不會讓我們感到震驚，但現在我們認為它將保持相當平穩。

Okay, thanks, guys.

好的，謝謝大家。

I appreciate it.

我很感激。

Michael Gambardella, JPMorgan.

麥可甘巴德拉，摩根大通。

Michael, you can proceed with your question.

邁克爾，你可以繼續你的問題。

Can you please check to see if your phone is on mute?

請您檢查一下您的手機是否處於靜音狀態？

Well, that was easy to answer.

嗯，這很容易回答。

Chris Olin, Rosenblatt Securities.

克里斯·奧林，羅森布拉特證券。

I just have a basic question.

我只有一個基本問題。

A couple companies have started to mention weather, especially the rain in taxes, as part of an issue in the past quarter.

一些公司已經開始提到天氣，尤其是稅收方面的降雨，作為上個季度問題的一部分。

I was just wondering if you think you lost any volumes because of the amount of rainfall and your leverage to construction markets.

我只是想知道您是否認為由於降雨量和對建築市場的影響力而導致銷售損失。

No, I don't think we do.

不，我不認為我們這樣做。

When we have weather issues, whether it is in the wintertime in Cleveland, Ohio or rain in Texas, if we lose a day we pick it up the next day.

當我們遇到天氣問題時，無論是俄亥俄州克利夫蘭的冬天還是德克薩斯州的下雨天，如果我們失去了一天，我們會在第二天補上。

Because you always end up getting the orders you were going to get but they just get pushed out in the future.

因為你最終總是會得到原本應該得到的訂單，但它們在未來就會被淘汰。

So, no, I wouldn't -- we don't blame things on weather.

所以，不，我不會——我們不會把事情歸咎於天氣。

Yes.

是的。

Rarely will you ever hear us say anything about our business of being negatively affected by weather conditions, unless there is an absolute devastating five-day hailstorm (multiple speakers), right.

你很少會聽到我們談論我們的業務受到天氣條件的負面影響，除非有一場絕對毀滅性的為期五天的冰雹（多個發言者），對吧。

Because the orders are still there, the fact of the matter is we just can't ship them because either issues on the road or our customers aren't open to receive it.

由於訂單仍然存在，事實是我們無法發貨，因為要么是途中出現問題，要么我們的客戶無法接收訂單。

But at the end of the day, whether it be at the end of the month or the beginning of the following month, it is going to ship.

但到了最後，不管是月底還是下月初，都要出貨了。

So it has not been an issue with us and we have had certainly some complaints about 14 inches of rain in 24 hours and stuff like that, but I haven't heard and got -- by the mercy of God, none of our people have been affected, they are all healthy and whatnot, that is the most important thing.

所以這對我們來說不是一個問題，我們確實有過一些關於24 小時內14 英寸降雨量之類的抱怨，但我沒有聽過，也沒有得到過——靠上帝的仁慈，我們的人民都沒有遇到這樣的情況。受到影響，他們都健康等等，這是最重要的。

But I haven't heard any, and if Jim would have heard something I would have heard it.

但我什麼也沒聽到，如果吉姆聽到的話我也會聽到的。

So the answer to your question is, no, it is business as usual at Reliance.

所以你的問題的答案是，不，Reliance 一切如常。

Okay, thanks a lot.

好的，非常感謝。

(Operator Instructions).

（操作員說明）。

John Tumazos, John Tumazos Very Independent Research.

約翰‧圖馬佐斯，約翰‧圖馬佐斯非常獨立的研究。

I just wanted to thank Dave and congratulate Dave on his retirement and the whole team under -- for the accomplishments of the last 22 plus years.

我只是想感謝 Dave，祝賀 Dave 退休，並祝賀整個團隊在過去 22 年多的時間裡所取得的成就。

When you think about it, even Ken Iverson at Nucor made a mistake once, iron carbide or steel concrete railroad ties 50 years ahead of the railroad industry.

想想看，就連紐柯公司的肯艾佛森也犯過一次錯誤，碳化鐵或鋼混凝土枕木比鐵路行業領先 50 年。

Or maybe [Tom Graham] once or twice spent money on an oilfield tube machine or an automotive processing plant that didn't earn returns the first 10 years.

或者，也許[湯姆·格雷厄姆]曾經或兩次花錢購買油田製管機或汽車加工廠，但在前 10 年沒有獲得回報。

A lot of people -- I don't think Reliance has made a significant strategic mistake since it has gone public and God bless you.

很多人——我認為信實公司自從上市以來並沒有犯下重大的戰略錯誤，上帝保佑你們。

We had good leadership with Dave, that is for sure.

我們和戴夫有很好的領導，這是肯定的。

Well the team, the team too.

嗯，團隊，團隊也是。

Yes.

是的。

So, with regard to several metrics I am trying to remember what are the best ones ever?

那麼，關於幾個指標，我試著記住哪些是有史以來最好的指標？

Is the 31.1 FIFO margin the best ever?

31.1 FIFO 餘裕是有史以來最好的嗎？

And could you just refresh us as to what was the best quarterly revenue ever, the best quarterly tonnage ever and the best quarterly EPS ever?

您能否向我們介紹一下有史以來最好的季度收入、有史以來最好的季度噸位和有史以來最好的季度每股收益是多少？

And it is so extraordinary to have the record margin without having record volume and price, you must have really bought steel well at the beginning of the price runoff.

而且在沒有創紀錄的成交量和價格的情況下卻擁有創紀錄的利潤率，這真是太了不起了，你一定是在價格決堤之初就買好了鋼材。

Yes, I think, John, as far as the question on records, the FIFO gross profit margin in the quarter of 31.1% I thought that probably had to be a record.

是的，我認為，約翰，就記錄問題而言，我認為該季度 FIFO 毛利率為 31.1%，這可能是一個記錄。

But we went back and in 2004 when we had that first price spike there were -- the second, third and fourth quarters of 2004 -- or first, second and third quarters we were actually a little bit above that with the record at 34.3% during that time.

但我們回顧一下，在2004 年，當我們出現第一次價格飆升時，即2004 年的第二、第三和第四季度，或者說第一、第二和第三季度，我們實際上略高於這一水平，創下了34.3% 的記錄在那段時間內。

Revenues -- we are not quite there because pricing is still down, we have been building the Company.

收入——我們還沒有完全達到目標，因為定價仍在下降，我們一直在建立公司。

But the third quarter of 2014 was kind of a record there.

但 2014 年第三季創下了歷史紀錄。

And from an EPS standpoint we hit our record in the second quarter of 2008.

從每股盈餘的角度來看，我們在 2008 年第二季創下了紀錄。

Prices per certainly a lot different in the second quarter of 2008 than they are now.

2008 年第二季的價格肯定與現在有很大不同。

And I think we would easily beat that with the fundamental improvements we have made in the business through the companies we have acquired and through the value add that we have added and the way our people are executing on getting the margin.

我認為，透過我們收購的公司、我們增加的附加價值以及我們的員工為獲得利潤而執行的方式，我們在業務方面取得了根本性的改進，我們將很容易擊敗這一點。

So I think with that pricing, like I said, we would be there.

所以我認為，按照這個定價，就像我說的那樣，我們會做到這一點。

But we feel really good about how we have performed in the current environment.

但我們對我們在當前環境下的表現感到非常滿意。

John, speaking from our team's point of view, we really appreciate that question.

約翰，從我們團隊的角度來看，我們非常感謝這個問題。

It is very valid.

這是非常有效的。

But we had a Board meeting last night and a Board member brought up the very question about our 31.1%.

但我們昨晚召開了一次董事會會議，一位董事會成員提出了關於我們 31.1% 的問題。

And I happened to glance at the report Karla is looking at today.

我碰巧看到了卡拉今天正在看的報告。

And I said, no it is not a record but is the best GP percent we have had in the past 12 years.

我說，不，這不是記錄，而是我們過去 12 年來最好的 GP 百分比。

So, I can't tell you how proud and excited we are as a management team here that we are able to do that.

因此，我無法告訴您，作為這裡的管理團隊，我們對能夠做到這一點感到多麼自豪和興奮。

And out of the six consecutive increases in GP per quarter, four of those quarters were in 2015 when prices were going down.

在每季 GP 連續六個季度成長的情況下，其中四個季度發生在 2015 年，當時價格正在下降。

And 9 times out of 10 when prices are going down your margins are going right down with it.

當價格下跌時，十分之九你的利潤也會隨之下降。

We reduced our inventory in 2015 by $433 million and we increased our gross profit margins at each one of those quarters throughout that particular year.

2015 年，我們的庫存減少了 4.33 億美元，並且全年每季的毛利率都有所提高。

And I have to tell you, there is not a whole lot of companies I have ever seen when prices fall 15 months in a row that are able to increase their prices every single quarter throughout a year like that.

我必須告訴你，在我見過的價格連續 15 個月下跌的公司中，沒有多少公司能夠像這樣在一年中每季都提高價格。

So it was a heck of an accomplishment.

所以這是一個了不起的成就。

And I think what it did for us, it just gave our team, both here and in the field, a lot more confidence in our ability to be able to sell product at higher prices based on the processing that we are doing and the outstanding commitment to customer service that we have.

我認為它為我們所做的，只是讓我們的團隊，無論是在這裡還是在現場，對我們能夠根據我們正在進行的加工和傑出的承諾以更高的價格銷售產品的能力更有信心我們擁有的客戶服務。

So, you can ask those questions to us any time (laughter).

所以，你可以隨時向我們提出這些問題（笑聲）。

If you could elaborate on the 1% to 3% up pricing guidance for the third quarter.

您能否詳細說明一下第三季 1% 至 3% 的上漲定價指引。

Nickel is up almost $1 now and stainless is strong.

鎳現在上漲了近 1 美元，不銹鋼也很堅挺。

I don't think any of the nonferrous prices are worse right now.

我認為目前有色金屬價格不會更糟。

Do you think you might be a little conservative on that or do you think steel is softening?

您認為您對此可能有點保守，還是認為鋼鐵正在走軟？

We are thinking steel is pretty flat.

我們認為鋼材非常扁平。

Okay, for the quarter that is our best guestimate is that steel would be pretty much at flat levels throughout the third quarter.

好的，對於本季度，我們最好的預測是，整個第三季鋼鐵價格將基本持平。

We are anticipating a kick in the stainless.

我們期待著不銹鋼的發展。

But normally that takes a little bit of time to work its way into the marketplace.

但通常需要一點時間才能進入市場。

So, our guidance is considering that to be a little bit flat.

因此，我們的指導認為這有點平淡。

But if this trade case kicks in it is probably not -- it is not going to affect us in the third quarter, but it could have an impact in the fourth quarter.

但如果這個貿易案件生效，它可能不會影響我們第三季的情況，但可能會在第四季產生影響。

Yes, and in all honesty, John, we're probably a little more hesitant of the price increase in Q3 versus Q2 since we missed a bit on Q2 versus Q1.

是的，老實說，約翰，我們可能對第三季與第二季的價格上漲更加猶豫，因為我們錯過了第二季與第一季的價格上漲。

I mean carbon was there and also with our product mix in the third quarter stainless is about 14% of our total sales dollars.

我的意思是碳是存在的，而且我們第三季的產品組合不銹鋼約占我們總銷售額的 14%。

A lot of our stainless products are sold into the energy industry.

我們的許多不銹鋼產品銷往能源產業。

So we don't know that we will necessarily get the bump as quickly on those stainless steel products as we will on the flat rolled and some of the other stainless products.

因此，我們不知道這些不銹鋼產品是否一定會像平板軋材和其他一些不銹鋼產品一樣快地受到衝擊。

So certainly we think it is positive.

所以我們當然認為這是正面的。

As you know, we are generally conservative or try to be in our guidance.

如您所知，我們通常持保守態度或嘗試遵循我們的指導。

So there is some upside there.

所以這有一些好處。

Could you elaborate on the 11% of your total revenue now from aerospace and just review how much of it is aluminum versus jet engine alloys or which parts of the plane, fasteners or --?

您能否詳細說明目前航空航太業佔您總收入的 11%，並回顧其中鋁與噴射發動機合金的比例，或者飛機的哪些部件、緊固件或——？

And if it is helping contribute to the 31.1% higher margin?

它是否有助於提高 31.1% 的利潤率？

John, I will take that, it is Bill.

約翰，我接受，是比爾。

I think of that 11%, most of it is on the aluminum side.

我認為這 11% 大部分都在鋁方面。

And so probably --

所以很可能——

It's probably about 9%.

大概是9%左右。

-- about 9% of that mix would be on the aluminum side.

——大約 9% 的混合物是鋁製的。

Then the balance would be in those specialty alloys, the aerospace steel and titanium products.

然後，平衡點將集中在那些特殊合金、航太鋼和鈦產品上。

And it goes across a wide range of end uses.

它具有廣泛的最終用途。

On aerospace steel we are a big player in landing gear and on the aluminum side with monolithic design for aluminum plate, it goes really all over the airframe.

在航空航太鋼方面，我們是起落架的重要參與者，而在鋁方面，採用鋁板整體設計，它確實遍布整個機身。

Of that 9% though, Bill, what would you consider to be our plate?

不過，比爾，你認為這 9% 中的什麼是我們的盤子？

A significant part of that is plate.

其中一個重要部分是板材。

I mean --.

我是說 - 。

70 --?

70——？

Yes, probably 70%, 75% of that would be on the aluminum plate side.

是的，可能其中 70%、75% 是在鋁板方面。

If I could just interject on the stainless and the nickel.

如果我能插話一下不銹鋼和鎳就好了。

There is a real sweet lady in the Philippines that is the Minister of Environment and Mines, natural resources -- she was to close every open pit mine and outlaw the use of explosives.

菲律賓有一位真正可愛的女士，她是環境和礦業、自然資源部長——她要關閉所有露天礦場並禁止使用爆炸物。

And last year the Philippines were 23% of world nickel mine output in the first -- even through the first half of this year they are still number one.

去年菲律賓的鎳礦產量佔世界鎳礦產量的23%排名第一——即使到今年上半年他們仍然排名第一。

So there is a new patron saint of the nickel market out there (laughter).

所以鎳市場出現了一位新的守護神（笑聲）。

We will get on our knees and say a prayer for her.

我們會跪下來為她祈禱。

Yes, I have got my rosary beads in my hand.

是的，我手上拿著念珠。

(Laughter) I got you.

（笑聲）我找到你了。

Take care.

小心。

Michael Gambardella, JPMorgan.

麥可甘巴德拉，摩根大通。

Sorry, I got disconnected before.

抱歉，我之前斷線了。

Congratulations on the quarter.

恭喜本季。

And just wanted to get some color on the processing end if your business, the tolling business.

如果您的業務是收費業務，我只是想在處理端獲得一些色彩。

Can you give us an idea -- the gross profit margin in the quarter, 31% what would that be if you excluded the processing part of your business?

您能否給我們一個想法——如果您排除業務的加工部分，本季的毛利率為 31%，那會是多少？

Yes, so the toll processing part, Mike, does have higher gross profit margins than the other part of the business.

是的，所以來料加工部分，麥克，確實比其他業務部分有更高的毛利率。

So it brings it up a bit, but it is right around 3% of our sales dollars.

所以它提高了一點，但大約占我們銷售額的 3%。

So it is not moving it significantly.

所以它並沒有顯著地移動它。

So we saw that trend in the gross profit margin percent truly was across the Company.

因此，我們看到毛利率的趨勢確實存在於整個公司。

It wasn't achieved only because of the toll processing.

這不僅僅是因為收費處理的實作。

Toll processing helps pull it up a bit, but the rest of our operations all increased their gross profit margins and really had that improvement that you see in the total GP percent.

來料加工有助於拉升一點，但我們其餘的業務都增加了毛利率，並且確實有了你在總毛利率中看到的改善。

We take a look at that basically every month.

我們基本上每個月都會來看一下。

And as happy as we are with the toll processing operations and their contributions to earnings, and believe me, we are.

我們對來料加工業務及其對收入的貢獻感到高興，相信我，我們是這樣的。

But as a whole when you look at all of the entire Corporation, basically every business unit had increased gross profit margins over the past six quarters.

但作為一個整體，當你觀察整個公司時，基本上每個業務部門在過去六個季度的毛利率都有所增加。

Right.

正確的。

But the toll processing business, I mean their gross profit margins must be more than double what the Company reported, right?

但是來料加工業務，我的意思是他們的毛利率一定是公司報告的兩倍以上，對嗎？

Not at the gross profit margin level.

不在毛利率水準。

They are significantly better than the companywide average, but not to that extent.

他們明顯好於全公司的平均水平，但還沒有到那個程度。

When you go down to kind of the pretax -- operating income or pretax, you are going to see a higher multiple to the companywide average produced by our toll processing company.

當你考慮稅前——營業收入或稅前時，你會看到我們來料加工公司產生的全公司平均值的倍數更高。

But you are saying that the total revenue on toll processing is 3%?

但你是說來料加工的總收入是3%？

Of total sales dollars, because remember we are only charging for the processing fee.

佔總銷售額的百分比，因為請記住，我們只收取加工費。

Right.

正確的。

So 3% of total sales dollars, but it is a bigger percentage of the operating income or pretax income line.

佔總銷售額的 3%，但佔營業收入或稅前收入線的比例較大。

And that tends to be stickier business, right, than the vast majority of the other business?

這往往是比絕大多數其他業務更具黏性的業務，對吧？

Yes, it is kind of high volume long run, where the customers where -- we are seeing with there we are going into large pieces of business.

是的，從長遠來看，這是一種大批量的業務，我們看到客戶在那裡，我們正在進行大量業務。

And that is contracted on an annual basis?

而且是按年簽約嗎？

Actually, when we get into contracts there, they are more agreements that we have with the suppliers and the end-users.

實際上，當我們在那裡簽訂合約時，更多的是我們與供應商和最終用戶簽訂的協議。

Of course the suppliers are ultimately our customer.

當然，供應商最終是我們的客戶。

But we are also very, very close with the end-user, so we understand the quality needs of that end-user.

但我們與最終用戶的關係也非常非常密切，因此我們了解最終用戶的品質需求。

So, it is not like you walk into a signed agreement, it is a handshake agreement that this is what you are going to do and these are the volumes associated with it.

因此，這並不像您簽署協議，而是一份握手協議，這就是您要做的事情，這些是與之相關的捲。

And this is what our price is for the various processes that we perform.

這就是我們執行的各種流程的價格。

So it is -- you have to understand, our business on toll processing is a little bit different than the majority of toll processors in that we do the really, really difficult things that most toll processors don't even want to touch.

所以，你必須明白，我們的收費處理業務與大多數收費處理商有點不同，因為我們做的是大多數收費處理商甚至不想觸及的非常非常困難的事情。

We do processing at our total processing operations that we could not do in any of our service centers throughout the country, okay.

我們在整個加工業務中進行處理，這是我們在全國各地的任何服務中心都無法做到的，好吧。

They are very niche orientated and it is very, very high quality needs.

他們非常注重利基市場，需求品質非常非常高。

So we don't have a tremendous amount of competition.

所以我們沒有很大的競爭。

And we do a really good job with that.

我們在這方面做得非常好。

But we don't have a firm commitment for a year with basically anybody.

但我們基本上沒有對任何人做出一年的堅定承諾。

Okay, and is that part of the reason why your capital expenditure commitment is higher than some of your competitors?

好的，這就是您的資本支出承諾高於某些競爭對手的部分原因嗎？

It definitely is.

絕對是。

Some of the equipment that we put in -- well, let's put it this way, the most expensive equipment that we put in at Reliance Steel is associated with our toll processing operations.

我們投入的一些設備——好吧，讓我們這樣說吧，我們在 Reliance Steel 投入的最昂貴的設備與我們的來料加工業務相關。

But even outside of that, putting the toll processing investments aside, Mike, we still spend significantly more than our competitors on capital expenditures and putting in kind of new state of the art equipment into our facilities.

但即使除此之外，撇開來料加工投資不談，麥克，我們在資本支出和在我們的設施中安裝最先進的設備方面的支出仍然比我們的競爭對手多得多。

Okay and just on (technical difficulty), I assume this is in the 10-K, I can look it up.

好的，就（技術難度）而言，我認為這是在 10-K 中，我可以查一下。

But what percent of the locations at this point if you look at on a square footage basis is owned versus pleased?

但是，如果您以平方英尺為基礎來看，目前擁有的位置和滿意的位置所佔的比例是多少？

Sorry, Mike, give me one second here.

抱歉，麥克，請給我一點時間。

I am flipping in our 10-K.

我正在翻轉我們的 10-K。

It is the only number Karla doesn't have memorized (laughter).

這是卡拉唯一沒有記住的數字（笑聲）。

If we just had our big table, so it is harder for me to find right now.

如果我們只有大桌子，那麼我現在就很難找到了。

I think it is the majority, Mike -- wait, got it.

我認為這是大多數，麥克——等等，明白了。

So, about 80% of our total square footage in our operating facilities we own.

因此，我們擁有營運設施總面積的約 80%。

Great.

偉大的。

Thanks again and congratulations on the quarter.

再次感謝並恭喜本季。

Thank you very much.

非常感謝。

Phil Gibbs, KeyBanc Capital Markets.

Phil Gibbs，KeyBanc 資本市場。

I think at this point my questions are answered (laughter).

我想此時我的問題已經回答了（笑聲）。

Actually, I just remembered it.

其實我只是想起來而已。

It was a question on the sheet business, because I think you acquired a lot of that from Metals USA.

這是一個關於板材業務的問題，因為我認為你們從美國金屬公司獲得了很多板材業務。

So was there a lag -- is there a lag, Karla and Gregg, in terms of the pricing there?

那麼卡拉和格雷格，那裡的定價是否有滯後？

Is more of that business on a CRU reset?

更多的業務是透過 CRU 重置來實現的嗎？

The contract business that -- in carbon steel that we have with the Metals USA companies, a degree of that is based on crew, okay.

我們與美國金屬公司的碳鋼合約業務，在一定程度上是基於船員的，好吧。

So whenever you have any contract based on that index there is a lag.

因此，只要您有任何基於該指數的合同，就會存在滯後。

So what you see in a particular month or quarter, I should say, could lag the market and then you can get higher margins in the following quarter.

因此，我應該說，你在特定月份或季度看到的情況可能會落後於市場，然後你可以在下一個季度獲得更高的利潤。

And just the opposite, if prices go down you might have higher margins this quarter and lower margins the next quarter.

相反，如果價格下跌，本季的利潤率可能會更高，而下個季度的利潤率可能會更低。

So, yes, there is.

所以，是的，有。

But if you look at our total Company, okay, as a whole, what that lag is, whether it is going up or it is going down, is relatively insignificant when you look at the entire scheme of things.

但如果你看我們整個公司，好吧，作為一個整體，當你看整個計劃時，無論是上升還是下降，這種滯後是相對微不足道的。

It is not something that I would worry about.

這不是我擔心的事。

Okay.

好的。

I was just trying to gauge in your carbon steel portfolio if you had a lot of lag (inaudible) business.

我只是想衡量一下你的碳鋼投資組合中是否有很多滯後（聽不清楚）的業務。

And I think if you had -- in my mind if you had any it would be in the sheet side, but it sounds like even that is pretty mixed.

我想，如果你有——在我看來，如果你有的話，它會在床單一側，但聽起來即使是這樣也很複雜。

It is, it is.

是的，是的。

It is a good question.

這是一個好問題。

And we don't have the crew on anything other than the carbon steel flat roll business.

除了碳鋼扁捲業務外，我們沒有其他工作人員。

We don't have it in the other products.

我們其他產品中沒有它。

Yes, and carbon flat rolled is 15% of our total sales dollars, 3% of that is hot rolled -- I'm sorry, 6% is hot rolled, the rest is in kind of galvanized -- the majority is in galvanized and then cold rolled.

是的，碳扁鋼占我們總銷售額的 15%，其中 3% 是熱軋——抱歉，6% 是熱軋，其餘的是鍍鋅——大部分是鍍鋅，然後冷軋。

Okay.

好的。

Thanks so much.

非常感謝。

There are no further questions at this time.

目前沒有其他問題。

I would like to turn the call back over to Gregg Mollins for any closing comments.

我想將電話轉回格雷格·莫林斯以徵求結束意見。

Okay thank you for joining us today.

好的，謝謝您今天加入我們。

I would just like to reiterate the fact that our focus is on maximizing earnings, not tons or sales.

我想重申一個事實，即我們的重點是利潤最大化，而不是噸數或銷售量。

And that starts with gross profit margin which is why we speak so much towards that particular bottom line.

這首先是毛利率，這就是為什麼我們如此多地談論這個特定的底線。

We are not a tonnage type Company, we are an earnings Company.

我們不是噸位型公司，我們是獲利型公司。

So I just wanted to reinforce that.

所以我只是想強調這一點。

Also, I would like to -- we would like to remind you that in mid-September we will be in Boston presenting at the KeyBanc basic materials conference and we hope to see many of you there.

另外，我想 - 我們想提醒您，九月中旬我們將在波士頓舉行 KeyBanc 基本材料會議，我們希望在那裡見到你們中的許多人。

Thanks for joining us and have a great day.

感謝您加入我們，祝您有美好的一天。

This concludes today's conference.

今天的會議到此結束。

Thank you for your participation.

感謝您的參與。

You may disconnect your lines at this time and have a wonderful day.

此時您可以斷開線路並度過美好的一天。