Standard Motor Products Inc (SMP) 2025 Q1 法說會逐字稿

Good day everyone, and welcome to the Standard Motor Products, first quarter 2025 earnings call.

大家好，歡迎參加標準汽車產品 2025 年第一季財報電話會議。

At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question and answer session. (Operator Instructions)

此時，所有參與者都處於只聽模式。稍後，您將有機會在問答環節提出問題。（操作員指示）

Please note today's call will be recorded, and I will be standing by should you need any assistance. It is now my pleasure to turn the conference over to Tony Cristello, Vice President of Investor Relations. Please go ahead.

請注意，今天的通話將被錄音，如果您需要任何幫助，我將隨時待命。現在我很高興將會議交給投資者關係副總裁 Tony Cristello。請繼續。

Thank you, Chloe, and good morning, everyone. Thank you for joining us on Standard Motor Products 1st quarter 2025 earnings conference call. With me today are Larry Sills, Chairman Emeritus; Eric Sills, Chairman and Chief Executive Officer; Jim Burke, Chief Operating Officer; and Nathan Iles, Chief Financial Officer;

謝謝你，克洛伊，大家早安。感謝您參加標準汽車產品 2025 年第一季財報電話會議。今天與我一起出席的有榮譽主席 Larry Sills、主席兼執行長 Eric Sills、營運長 Jim Burke 和財務長 Nathan Iles；

On our call today, Eric will give an overview of our performance in the quarter, and Nathan will then discuss our financial results. Eric will then provide some concluding remarks and open the call up for Q&A. Before we begin this morning, I'd like to remind you that some of the material that we'll be discussing today may include forward-looking statements regarding our business and expected financial results.

在今天的電話會議上，艾瑞克將概述我們本季的表現，然後內森將討論我們的財務表現。隨後，埃里克將發表一些總結性發言，並開始問答環節。在我們今天早上開始之前，我想提醒您，我們今天討論的一些材料可能包括有關我們的業務和預期財務結果的前瞻性陳述。

When we use words like anticipate, believe, estimate, or expect, these are generally forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, they are based on information currently available to us and certain assumptions made by us, and we cannot assure you that they will prove correct.

當我們使用諸如預期、相信、估計或期望之類的字詞時，這些通常都是前瞻性的陳述。儘管我們認為這些前瞻性聲明中反映的預期是合理的，但它們是基於我們目前掌握的資訊和我們所做的某些假設，我們無法向您保證它們是正確的。

You should also read our filings with the Security and exchange Commission for a discussion of the risks and uncertainties that could cause our actual results to differ from our forward-looking statements. I'll now turn the call over to Eric Sills, our CEO.

您還應該閱讀我們向美國證券交易委員會提交的文件，以了解可能導致我們的實際結果與前瞻性陳述不同的風險和不確定性。現在我將把電話轉給我們的執行長 Eric Sills。

Oh, thank you, Tony, and good morning and welcome to our first quarter earnings call. It's good to be with you today. I'll start my prepared remarks reflecting on our performance in the quarter and will then turn my attention to the current business climate, how we're viewing it, and how we are responding.

哦，謝謝你，托尼，早上好，歡迎參加我們的第一季財報電話會議。今天能和你在一起真好。我將從回顧我們本季的業績開始我的準備發言，然後將我的注意力轉向當前的商業環境、我們如何看待它以及我們如何應對。

Overall, we are very pleased with our performance in the quarter as both the top and bottom lines exceeded our expectations. For sales, we were up nearly 25%, and while much of the growth was due to the inclusion of our recent Nissan's acquisition, excluding Nissan's sales were up nearly 5%, so we feel the year is off to a good start.

總體而言，我們對本季的表現非常滿意，因為營收和淨利潤均超出了我們的預期。就銷售額而言，我們的銷售額增長了近 25%，雖然大部分增長是由於我們最近收購了日產汽車，但不包括日產汽車的銷售額增長了近 5%，因此我們認為今年的開局良好。

We also had strong results in terms of profitability. Similar to the sales storm, while the Nissan's business provided some of the expansion, our other segments also showed strong gains. We generated a $20 million dollar increase in EBITDA and a 350 basis point lift in EBITDA margin.

我們在獲利方面也取得了強勁的業績。與銷售風暴類似，日產​​的業務提供了一些擴張，而我們的其他部門也顯示出強勁的成長。我們的 EBITDA 增加了 2000 萬美元，EBITDA 利潤率提高了 350 個基點。

Let me discuss each business separately in terms of our performance, how we view the basic dynamics in the space, and how we differentiate ourselves to capitalize on our strengths.

讓我分別討論一下我們的業績、我們如何看待該領域的基本動態，以及我們如何脫穎而出以發揮我們的優勢。

I'll start with the North American aftermarket, the largest part of our business, comprised of two operating segments, vehicle control and temperature control. Both of these segments set all-time records for 1st quarter sales.

我將從北美售後市場開始，這是我們業務的最大部分，由兩個營運部門組成，即車輛控制和溫度控制。這兩個部門都創下了第一季銷售的歷史最高紀錄。

For vehicle control, sales increased 3.7% in the quarter, continuing the growth trend we've been enjoying for the last several periods. We believe this is due to a combination of market dynamics and now a relative strength in the marketplace. All the macro trends continue to be favorable. The car park is growing and aging, and as times get economically challenging, consumers tend to delay new car purchases and instead maintain the ones they have.

就車輛控製而言，本季銷售額成長了 3.7%，延續了過去幾個時期的成長趨勢。我們認為這是市場動態和當前市場相對實力相結合的結果。所有宏觀趨勢繼續向好。停車場正在不斷擴大和老化，隨著經濟狀況的嚴峻，消費者傾向於推遲購買新車，轉而維護現有的汽車。

Car owners may forego discretionary purchases or delay maintenance work, but the majority of what we sell are hard failure products which are non-discretionary in nature and typically cannot be deferred. Additionally, most of our products are professionally installed and technicians stick with the brands they trust. Therefore, not only has demand remained strong from our customers, importantly, they are reporting positive sell through of our products in the quarter as well.

車主可能會放棄可自由支配的購買或推遲維護工作，但我們銷售的大部分產品都是硬故障產品，這些產品本質上是不可自由支配的，通常不能推遲。此外，我們的大多數產品都由專業人員安裝，技術人員也堅持使用他們信賴的品牌。因此，不僅我們的客戶需求依然強勁，更重要的是，他們還報告了我們產品在本季的積極銷售情況。

Our other aftermarket segment, temperature control is off to a very strong start. We exited last year with robust numbers and that trend has continued with sales in the quarter of 24% over last year.

我們的另一個售後市場領域，溫度控制，開局非常強勁。去年我們取得了強勁的業績，而這一趨勢一直延續，本季的銷售額比去年同期成長了 24%。

We see a few drivers here. First off, the segment enjoys the same macro tailwinds described in vehicle control stable addressable market, non-discretionary products, and strong brand equity. As such, the quarter was marked by solid customer sell through with customer POS up high single digits over last year.

我們在這裡看到了一些司機。首先，該領域享有與汽車控制穩定目標市場、非必需產品和強大品牌資產相同的宏觀順風。因此，本季客戶銷售表現穩健，客戶 POS 銷售量較去年同期成長了高個位數。

But as a seasonal business, the beginning of the year tends to be driven by preparation for the upcoming season. We therefore received preseason orders from the majority of our customer base, and this year we saw a lot of those ship in the 1st quarter. But as the segment's success is determined by the selling season, which typically begins towards the end of the 2nd quarter. So we look forward to a long, hot summer.

但作為季節性業務，年初往往是為了即將到來的季節做準備。因此，我們收到了大多數客戶群的季前訂單，今年我們看到許多訂單在第一季出貨。但該細分市場的成功取決於銷售季節，而銷售季節通常在第二季結束時開始。所以我們期待一個漫長而炎熱的夏天。

Next, let me discuss our engineered solution segment where we serve various global and markets with products for new vehicle and equipment production.

接下來，讓我討論我們的工程解決方案部門，我們為全球各個市場提供用於新車和設備生產的產品。

The softness in the last year has continued and sales were down 11.2%. As opposed to the aftermarket, this segment can be more impacted by cyclical trends, and to some of our customers are experiencing downturns in their end markets, they're reducing their production schedules and thus their purchases from us. Importantly, while the top line was down, the customer and product mix has been favorable and therefore the segment profits were up from last year.

去年的疲軟態勢仍在持續，銷售額下降了 11.2%。與售後市場相比，該細分市場更容易受到週期性趨勢的影響，我們的一些客戶在終端市場經歷低迷，他們正在減少生產計劃，從而減少從我們這裡購買的產品。重要的是，雖然營業收入下降，但客戶和產品組合良好，因此該部門利潤較去年有所上升。

So how do we view this business and our position within it? We believe that while there can be volatility quarter to quarter, the longer term trends are favorable. The markets are global, large, and diverse, and we are starting from a small base. We are now gaining market exposure as a highly capable producer with a broad portfolio of products, which is leading to new business awards. Therefore, the future for engineered solutions remains bright, both in its own right and as an excellent complement to the aftermarket.

那麼我們如何看待這個產業以及我們在其中的地位？我們認為，儘管季度間可能會出現波動，但長期趨勢是有利的。市場是全球性的、龐大的、多樣化的，而我們是從小規模起步的。現在，我們作為一家擁有廣泛產品組合、能力強大的生產商，正在獲得市場認可，並因此獲得新的商業獎項。因此，工程解決方案的未來仍然光明，無論是就其本身而言，還是作為售後市場的絕佳補充。

Last, we all speak about our newest part of our company, Nissan's. This was the first full quarter of ownership, and we are delighted with how it performed. Both sales and profits exceeded our expectations. Nissan's has a strong position in the market for many of the same reasons as described here in North America. They have a broad offering of professional grade products with a brand that is well known and well regarded, and as Europe is a highly DIFM market, Nissan does very well.

最後，我們來談談我們公司最新的部門—日產。這是擁有該所有權的第一個完整季度，我們對它的表現感到非常滿意。銷售額和利潤都超出了我們的預期。日產在市場上佔據強勢地位，其原因與北美市場的許多原因相同。他們擁有廣泛的專業級產品，其品牌知名度高、備受推崇，而且由於歐洲是一個高度 DIFM 的市場，日產表現非常出色。

Importantly, the more we work with the Nissan team, the more we know that we are a perfect fit together. We see complementary go to market strategies, product portfolios, and cultural alignment. We have global customers that we either share or are introducing to each other. We are finding excellent means of collaboration leading to significant synergies, all while providing business and geographic diversification. We see a great future together and look forward to keeping you abreast of our integration status.

重要的是，我們與日產團隊合作得越多，我們就越知道我們是完美契合的。我們看到了互補的市場策略、產品組合和文化協調。我們擁有全球客戶，我們彼此分享或互相介紹。我們正在尋找能夠產生顯著協同效應的出色合作方式，同時實現業務和地理多樣化。我們看到了美好的未來，並期待讓您了解我們的整合狀況。

Okay, having given a rundown of the quarter, I'd like to now spend a few moments talking about the current business environment, how we are thinking about the potential impacts and what we believe differentiates us in a way that will provide a competitive advantage.

好的，在概述了本季的情況後，我想花一點時間談談當前的商業環境，我們如何看待潛在的影響，以及我們認為哪些方面可以使我們與眾不同並帶來競爭優勢。

The topic on everyone's mind obviously is tariffs. Needless to say, we are in a fluid situation, so it's impossible to state with certainty how it will play out. But as things currently stand, we believe that our commitment to being a basic manufacturer with a concentration in North America gives us a level of production and an advantage over other players.

顯然，每個人關心的話題都是關稅。不用說，我們正處於不穩定的局勢中，因此無法確定事情將如何發展。但就目前情況而言，我們相信，我們致力於成為一家專注於北美的基礎製造商，這將使我們擁有一定的生產水平，並比其他參與者更具優勢。

A few decades ago when the aftermarket began seeking low cost regions, most companies chose China. We chose Mexico. Fast forward to today, over half of our sales in the United States comes from product manufactured in North America, mostly Mexico, but also the US and a bit in Canada. As our Mexican and Canadian products are USMCA compliant, they remain tariff-free. And while we do incur some tariffs on components used in our US production, it is nominal in terms of our total cost structure.

幾十年前，當售後市場開始尋求低成本地區時，大多數公司選擇了中國。我們選擇了墨西哥。時至今日，我們在美國超過一半的銷售額來自北美製造的產品，主要是墨西哥，但也有美國和少量加拿大。由於我們的墨西哥和加拿大產品符合 USMCA 規定，因此仍免關稅。雖然我們在美國生產中使用的零件確實需要繳納一些關稅，但就我們的總成本結構而言，這只是名義上的。

And while the balance of our products are imported from elsewhere, only about 25% of all US sales are from China, with the rest being from Europe and other lower tariff countries.

雖然我們的大部分產品都是從其他地方進口的，但美國銷售額中只有約 25% 來自中國，其餘來自歐洲和其他關稅較低的國家。

We are currently heavily engaged in our mitigation efforts. From a cost containment perspective, we are working upstream with our suppliers to reduce prices and to relocate to lower tariff regions, and we are leveraging our footprint to optimize our supply chain, including deferring imports into the US until the products are needed. But most of our tariff recovery is through pricing actions. While we do believe that our tariff exposure will be lower than many, it is our full intent to pass them through to our customers at our cost as we have in the past.

我們目前正在大力進行緩解工作。從成本控制的角度來看，我們正在與上游供應商合作，以降低價格並遷移到關稅較低的地區，我們正在利用我們的足跡來優化我們的供應鏈，包括推遲進口到美國，直到需要產品為止。但我們的關稅回收大部分都是透過定價行動實現的。雖然我們確實相信我們的關稅風險將低於許多公司，但我們完全有意像過去一樣，以我們的成本將其轉嫁給我們的客戶。

Lastly, going back to the notion of our products being non-discretionary, they tend to be price inelastic, meaning we would not anticipate any degradation in demand. It's also worth reminding you that due to our two newer segments engineered solutions and this, we have seen nice geographic diversification. The US now represents about 70% of our sales down from about 90% a few short years ago. So again, while we're in a complex and challenging business environment, we feel good about our position relative to others and in our ability to navigate it.

最後，回到我們的產品是非自由支配產品的概念，它們往往缺乏價格彈性，這意味著我們預期需求不會下降。還值得提醒您的是，由於我們的兩個較新的細分市場工程解決方案，我們已經看到了良好的地理多樣化。目前，美國市場占我們銷售額的 70% 左右，而幾年前這一比例還只有 90%。因此，儘管我們身處複雜且充滿挑戰的商業環境中，但我們對自己相對於其他人的地位以及應對挑戰的能力感到滿意。

With that, I will turn it over to Nathan to review the numbers.

說完這些，我會把任務交給 Nathan 來審查這些數字。

All right thank you Eric. Good morning, everyone. As we go through the numbers, I'll first give some color on the results for the quarter by segment and its consolidated level. I'll then cover some key cash flow metrics and finish with an update on our financial outlook for the full year of 2025.

好的，謝謝你，艾瑞克。大家早安。當我們查看這些數字時，我將首先對各部門的季度業績及其綜合水平進行一些說明。然後，我將介紹一些關鍵的現金流指標，最後更新我們對 2025 年全年的財務前景。

First, looking at our vehicle control segment, you can see on the slide that net sales of 192.3 million in Q1 were up 3.7%, with the increase driven by steady demand for our products. Vehicle controls adjusted even in the first quarter, increased to 11.6%, up 120 basis points from last year. The increase in adjusted EBITDA was driven by a higher gross margin rate, mainly due to higher sales and lower factory expenses as a percent of sales, which was mainly the result of timing of collections during the quarter.

首先，看看我們的車輛控制部門，您可以在幻燈片上看到，第一季的淨銷售額為 1.923 億，成長 3.7%，這一成長是由我們產品的穩定需求推動的。第一季汽車消費稅調整後，成長率達11.6%，比去年同期上升了120個基點。調整後 EBITDA 的成長得益於毛利率的提高，這主要由於銷售額的增加和工廠費用佔銷售額的百分比的降低，而這主要是由於本季度收款時間的安排。

Looking at temperature control, net sales in the quarter for that segment of 88.9 million were up 24.1%. The 1st quarter benefited from a strong start to preseason ordering which started earlier this year than last, and also good sell through. As we always know, the first quarter is not indicative of how the full year will turn out in a weather dependent business like temp control, but we were pleased to get off to another good start.

從溫度控制來看，該部門本季淨銷售額為 8,890 萬，成長 24.1%。第一季受益於季前訂單的強勁開局，今年的季前訂單開始得比去年早，而且銷售情況也很好。我們一直都知道，對於像溫度控制這樣依賴天氣的業務來說，第一季並不能預示全年的結果，但我們很高興又有了一個好的開始。

Temperature controls adjusted EEA increased in Q1 to 10.6% as higher sales volumes led to a higher gross margin rate and improved operating expenses as a percent of sales in the quarter. Sales for engineered solutions segment in the quarter we're down 11.2%, but this softness was expected as we continue to see slower production schedules at our customers as they react to softness across the various markets. Customer demand could be lumpy over time, particularly in certain markets, but we expect to continue to win business to offset these market headwinds.

由於銷售量增加導致毛利率上升且本季營運費用佔銷售額的百分比有所改善，溫度控制調整後的 EEA 在第一季成長至 10.6%。本季工程解決方案部門的銷售額下降了 11.2%，但這種疲軟是意料之中的，因為我們看到客戶的生產計劃因各個市場的疲軟而持續放緩。隨著時間的推移，客戶需求可能會波動，尤其是在某些市場，但我們預計將繼續贏得業務以抵消這些市場阻力。

Despite lower sales, adjusted even for engineered solutions in the quarter of 9.7% was up from last year, driven by a better mix of products sold, as well as the benefit of a stronger US dollar versus Mexican peso, which helped to lower our manufacturing costs in the quarter.

儘管銷售額有所下降，但即使經過調整，本季工程解決方案的銷售額也比去年同期增長了 9.7%，這得益於銷售產品組合的改善，以及美元兌墨西哥比索走強的好處，這有助於降低我們本季的製造成本。

To wrap up on operating segments, let me talk a little about Nissan's automotive. This was our first full quarter of ownership, and Nissan's added 66.2 million of net sales in the quarter and 11.5 million of adjusted EBITDA. The business is performing as expected and exceeded our earlier estimate of the mid-teens EBITDA percent business coming in at 17.3% for the quarter.

為了總結經營分部，讓我簡單談談日產的汽車業務。這是我們擁有日產汽車的第一個完整季度，日產汽車本季的淨銷售額增加了 6,620 萬，調整後的 EBITDA 增加了 1,150 萬。該業務表現符合預期，並超越了我們先前對本季中等 EBITDA 百分比的估計，即 17.3%。

Nissan's continues to grow as sales across Europe, and gross margin has been good as well. 1st quarter also benefited from some favorable currency movements. To summarize and put it all together across our four segments for Q1, consolidated net sales increased 24.7% and adjusted EBITDA increase to 10.4% of net sales, while non-gap diluted earnings per share were up 80% versus last year.

日產汽車在歐洲的銷售持續成長，毛利率也一直很好。第一季也受益於一些有利的貨幣變動。總結並綜合我們第一季四個部門的業績，合併淨銷售額增長 24.7%，調整後 EBITDA 增長至淨銷售額的 10.4%，而非差距稀釋每股收益較去年同期增長 80%。

Turning out to cash flows, cash used in operations for the quarter of 60.2 million was up from cash used to 45.7 million last year. While we always use cash during Q1 and the first half of the year due to seasonal working capital needs. The higher cash usage this year is primarily a result of increased accounts receivable and inventory balances related to sales growth in the quarter.

就現金流而言，本季營運現金流為 6,020 萬美元，高於去年的 4,570 萬美元。由於季節性營運資金需求，我們總是在第一季和上半年使用現金。今年現金使用量的增加主要是由於本季銷售成長導致應收帳款和庫存餘額增加。

Our investing activity show capital expenditures of 9.1 million, which includes 3.5 million of investment related to our new distribution center. Financing activity show payment of 6.8 million of dividends, as well as borrowings for the year of 79.1 million so far, which were used mainly to fund our working capital needs.

我們的投資活動顯示資本支出為 910 萬美元，其中包括與我們的新配送中心相關的 350 萬美元的投資。融資活動顯示，迄今已支付了 680 萬的股息，以及 7,910 萬的年度借款，主要用於滿足我們的營運資金需求。

Our net debt of $600.3 million at the end of Q1 was higher than last year after borrowings made for the acquisition. We finished Q1 with a leverage ratio of 3.75 times EBITDA, but accounting for a full 12 months of EBITDA from Nissan's leverage would be less than 3.5 times.

我們第一季末的淨債務為 6.003 億美元，在收購而藉款後高於去年。我們第一季的槓桿率為 EBITDA 的 3.75 倍，但考慮到日產 12 個月的槓桿率，EBITDA 將低於 3.5 倍。

Before I finish, I want to give an update on our sales and profit expectations for the full year of 2025. As we noted in our release this morning, while tariffs have introduced a level of uncertainty into the macro environment, setting those aside, we're affirming our prior outlook as our business continues to perform well.

在結束之前，我想更新我們對 2025 年全年的銷售和利潤預期。正如我們在今天早上的新聞稿中指出的那樣，雖然關稅為宏觀環境帶來了一定程度的不確定性，但撇開這些不談，我們仍然確認我們先前的展望，因為我們的業務繼續表現良好。

As a reminder, we expect to see net sales percentage growth in the mid-teens percentages for the full year, and adjust EBITDA margin to be in a range of 10% to 11% of net sales with both measures including growth from Nissan's automotive, as we'll have 12 months of results versus 2 months in 2020.

提醒一下，我們預計全年淨銷售額百分比成長率將達到十幾歲左右，並將 EBITDA 利潤率調整為淨銷售額的 10% 至 11% 之間，這兩項指標都包括日產汽車的成長，因為我們將獲得 12 個月的業績，而 2020 年只有 2 個月。

As I said, our 2025 outlook does not include any impact from the recently announced tariff actions. Whatever the impact is in our business, we plan to address higher costs by passing them through in price dollar for dollar. We will update our guidance as necessary in future quarters when there's greater clarity regarding the situation.

正如我所說，我們的 2025 年展望不包括最近宣布的關稅行動的任何影響。無論對我們的業務有何影響，我們都計劃透過價格轉嫁的方式來解決更高的成本。當情況更加明朗時，我們將在未來幾季根據需要更新我們的指導。

To wrap up on the financial side, we're very pleased with our sales and earnings growth in the 1st quarter. While it's still early, we started the year well with earnings up across all segments, which really shows the ongoing strength of our business.

總結財務方面，我們對第一季的銷售額和獲利成長感到非常滿意。雖然現在還為時過早，但我們今年的開局很好，所有部門的盈利都有所增長，這確實顯示了我們業務的持續強勁。

Thank you for your time. I'll turn the call back to Eric for some final comments.

感謝您抽出時間。我會將電話轉回給 Eric，請他發表一些最後的評論。

Thank you, Nathan. So to close, let me spend a moment reflecting on how we're viewing things. We're coming off not just a strong start to the year, but several quarters in a row of strengthening performance, and we feel we have good momentum. The world now finds itself in uncharted territory with an uncertain and fragile economic climate, so the question becomes how well positioned are we to navigate it.

謝謝你，內森。最後，請容許我花一點時間來思考我們是如何看待事物的。我們不僅在今年取得了強勁的開局，而且連續幾個季度業績不斷增強，我們感覺我們擁有良好的發展勢頭。如今，世界正處於未知領域，經濟環境充滿不確定性和脆弱性，因此問題變成了我們能否做好應對這項挑戰的準備。

We believe that we have many structural underpinnings that will provide us with a relative advantage. Within North America, the majority of our businesses in an industry known for its resilience in turbulent times. Historically, the aftermarket has been able to mute the impact of economic downturns and in fact tends to outperform.

我們相信，我們擁有許多結構性基礎，這些基礎將為我們提供相對優勢。在北美，我們的大多數業務都處於一個以動盪時期的韌性而聞名的行業。從歷史上看，售後市場能夠減輕經濟衰退的影響，事實上往往表現優異。

The car park usually ages during these cycles as new car sales can become depressed and motorists have no choice but to make the necessary repairs to keep their cars operational. While we believe the tariffs will likely lead to some inflation, our non-discretionary parts by definition will still be in need.

在這些週期中，停車場通常會老化，因為新車銷售可能會變得低迷，而駕駛者別無選擇，只能進行必要的維修以保持汽車的正常行駛。雖然我們認為關稅可能會導致一定程度的通貨膨脹，但從定義上講，我們的非自由支配部分仍然會有需求。

Furthermore, S&P has spent the last century investing in operational excellence, and we tend to do better than most during tough times. Our manufacturing footprints provides structural advantages. Beyond cost beyond cost implications in a tariff environment, it's also provided supply chain stability.

此外，標準普爾在過去的一個世紀裡一直致力於卓越營運的投資，在困難時期我們往往比大多數公司表現得更好。我們的製造足跡提供了結構優勢。除了關稅環境下的成本影響之外，它還提供了供應鏈穩定性。

As we look back to the challenges coming out of the pandemic lockdowns, we outperformed. By operating our own factories rather than overly relying on third party sources, we were better able to control output and by being less reliant on China, we were less impacted by shipping and container disruptions. And as a result, we are better able to service our customers.

當我們回顧疫情封鎖帶來的挑戰時，我們表現得非常出色。透過營運我們自己的工廠而不是過度依賴第三方來源，我們能夠更好地控制產量，並且由於減少了對中國的依賴，我們受到航運和貨櫃中斷的影響也較小。因此，我們能夠更好地為客戶提供服務。

Beyond that, we have now expanded our business outside of the US and believe that geographic diversification will also help us to dampen the impact of the turbulence we are seeing domestically.

除此之外，我們現在已將業務擴展到美國以外，並相信地域多元化也將幫助我們減輕國內動盪的影響。

The integration of Nissan's is on track to yield significant synergies with teams working on product line expansion on both sides of the ocean to fuel growth, as well as savings programs focused on combined resources and that cost sourcing.

日產的整合有望產生顯著的協同效應，致力於擴大大洋兩岸產品線的團隊將推動成長，同時也將實施以整合資源和成本採購為重點的節約計畫。

Add to that various other cost reduction programs being pursued throughout the enterprise and tackling it all with the best group of people to make it happen. We feel good about the future. And with that, I'll turn it back to the moderator and we'll open it up for questions.

除此之外，整個企業還在推行各種其他成本削減計劃，並由最優秀的團隊來解決所有問題以實現這些計劃。我們對未來充滿信心。說完這些，我將把話題交還給主持人，然後我們就可以開始提問了。

Thank you. (Operator Instructions) Scott Stember with Roth.

謝謝。（操作員指示）斯科特·斯坦伯 (Scott Stember) 與羅斯 (Roth)。

Good morning, guys, and thanks for taking my questions.

大家早安，謝謝你們回答我的問題。

Good morning, Scott.

早安，史考特。

Eric, if I heard you correct, you said that POS and vehicle control was up, in the quarter. Could you maybe, size that up a little bit, and I know it had been flattish as of late. Have you guys seen an acceleration or anything to point to?

艾瑞克，如果我沒聽錯的話，您說的是本季 POS 和車輛控制有所增加。您能否將其尺寸稍微放大一點，我知道最近它一直比較平坦。你們有看到加速度或任何可以指向的東西嗎？

Yes, correct on both points. Coming out of much of last year was relatively flat in the first quarter of this year we did see positive gains in the low single digits. Now of course that's an aggregate number combining all of our customers, all of our major customers, but yeah, it was low single digits in the quarter.

是的，兩點都正確。去年大部分時間經濟表現相對平穩，但今年第一季我們確實看到了個位數的正成長。當然，這是我們所有客戶、所有主要客戶的總數，但確實，本季的成長率是低個位數。

Okay, got it. And then regarding tariffs, I know there's a lot of moving pieces here, but there's been some talk about some relief for imported foreign auto parts. Not sure if that's just referring to OEM based parts or does that, have you guys been able to clarify whether that means that there will be some relief, notably for Chinese parts for the aftermarket.

好的，明白了。關於關稅，我知道這裡有很多變動，但有人談論對進口外國汽車零件的減免。不確定這是否僅僅指基於 OEM 的零件，或者你們是否能夠澄清這是否意味著會有一些緩解，特別是對於售後市場的中國零件。

So I assume you're referring to the announcement that just came out in the last 24 hours and so we're still reading the details of it, but it does appear that it's much more geared towards relief for the automakers, and so at this point again we're still reading it but we're expecting that to have minimal impact on us.

因此，我假設您指的是過去 24 小時內剛發布的公告，我們仍在閱讀其細節，但看起來它更傾向於減輕汽車製造商的負擔，因此目前我們仍在閱讀它，但我們預計它對我們的影響將微乎其微。

Okay. And then last question on this is obviously a great contribution there in the quarter could you just give an idea? I know that you didn't own them last year, but on a pro forma basis sounds like they're growing faster. Then the core business organically and any cross pollination winds or you know good stuff that you've seen early on.

好的。然後最後一個問題，這顯然是本季度的巨大貢獻，您能給出一個想法嗎？我知道去年你還沒有擁有它們，但從形式上看，它們的成長速度似乎更快。然後，核心業務有機地和任何交叉授粉之風或您早期看到的好東西。

Yeah, okay, so, in terms of their growth or performance, right, we didn't own them a year ago, so we're not showing that comps, but what I would say is that they continue to show growth and to perform very well in that market. And that, so the trends that we have been speaking about prior to the acquisition of being in that, outperforming the European aftermarket, that trend did continue. In terms of wins since the acquisition, we're still in the early earlier stages of that, so nothing that's showing through the P&L.

是的，好的，就他們的成長或表現而言，對的，一年前我們還沒有擁有他們，所以我們沒有展示他們的比較，但我想說的是，他們繼續表現出成長並在那個市場上表現得非常好。因此，我們在收購之​​前一直在談論的趨勢是，超越歐洲售後市場，這種趨勢確實持續了下來。就收購以來的收益而言，我們仍處於早期階段，因此損益表中沒有顯示任何內容。

We do have, as I said, teams working on building out each other's catalogs, so really the way we see 2025 as being the preparation year as we add the coverage, put inventory in place, and whether that's adding skews to existing categories, for example, they have compressors that we don't have or vice versa, or it's entirely new product line expansions, a category that they herefore did not have heretofore did not have or vice versa. That work is happening this year. Where we would expect to see any sales left really in 2026. We are talking to each other's customers and we do believe that there are opportunities there as well, but nothing that nothing to report at this point that you're going to start seeing.

正如我所說，我們確實有團隊在建立彼此的目錄，因此我們實際上將 2025 年視為準備年，因為我們會增加覆蓋範圍，將庫存放到位，以及是否會增加現有類別的偏差，例如，他們有我們沒有的壓縮機，反之亦然，或者是全新的產品線擴展，這是他們以前沒有的類別，反之亦然。這項工作將於今年展開。我們預計 2026 年的銷售量還會有多少。我們正在與彼此的客戶交談，我們確實相信那裡也有機會，但目前還沒有什麼可以報告的，你將開始看到。

Got it. That's all I have for now. Thank you.

知道了。我現在知道的就這些。謝謝。

Thank you, Scott.

謝謝你，斯科特。

Bret Jordan with Jefferies.

布雷特喬丹 (Bret Jordan) 與 Jefferies 合作。

Hey, good morning, guys.

嘿，大家早安。

Morning Bret.

早安，布雷特。

When you look at the tariffs and you look at the competitive product for you out there whether it's wells or whether it's OE alternative you know in temperature control or vehicle control how does your tariff exposure and production footprint stack up I guess sort of the your relative price value versus the competition in this current tariff environment.

當您查看關稅並查看市場上的競爭產品時，無論是油井還是溫度控製或車輛控制中的 OE 替代品，您的關稅風險和生產足跡如何疊加，我想這有點像您在當前關稅環境下與競爭對手的相對價格價值。

Have you gained ground in the sense that you're more North American and more of your competition is import or have the OEs gained ground because they're getting relief on import and they are North American as well?

您是否因為更加北美化而獲得了優勢，而您的競爭對手更多是進口產品，或者原始設備製造商 (OE) 是否因為在進口方面獲得減免而獲得了優勢，而且他們也是北美產品？

Yeah, we believe that in general our footprint is favorable to the competition. Obviously yet to be seen how the competitors look to address it in the marketplace, but we believe overall we have a structural advantage whether it's against the pure play aftermarket guys that you're referring to or against any of the tier ones, we see ourselves being at a structural advantage.

是的，我們相信整體而言我們的足跡有利於競爭。顯然，競爭對手如何在市場上解決這個問題還有待觀察，但我們相信，總體而言，我們具有結構性優勢，無論是針對您所指的純售後市場參與者，還是針對任何一級市場參與者，我們都認為自己具有結構性優勢。

Okay, and then on the Nissan's business, could you talk about just European aftermarket trends, what they're seeing in POS and the general health of the aftermarket on that side of the ocean?

好的，那麼關於日產的業務，您能否談談歐洲售後市場的趨勢、他們在 POS 上看到的情況以及大洋彼岸售後市場的整體健康狀況？

Yeah, so, as we look at the overall market in Europe, you're hearing some of the similar things from the big players over there, as the distributors are reporting here, which is, you're seeing some softness in certain categories. But hard failure items and more DIFM type items tending to outperform. So you see a lot of similar trends there which Nissan's is well positioned to take advantage of and so we believe that they should stand to continue to outperform over there, the general aftermarket trends.

是的，當我們觀察歐洲的整體市場時，你會從那裡的大公司那裡聽到一些類似的事情，正如分銷商在這裡報告的那樣，你會看到某些類別的市場有些疲軟。但硬故障專案和更多 DIFM 類型的專案往往表現優異。因此，您會看到那裡有很多類似的趨勢，日產汽車完全有能力利用這些趨勢，因此我們相信他們應該能夠繼續在那裡表現出色，超越一般的售後市場趨勢。

Okay, and then I guess one last question just sort of on this the cadence of this year's outlook, did you think you saw a lot of pull forward in Q1 orders that people were trying to bring inventory in ahead of who know what was going to be on tariffs the next day and that will have drawn from Q2 and we did to sell out before we replenished or do you think it's strong sequentially through the year?

好的，然後我想最後一個問題是關於今年前景的節奏，您是否認為您看到第一季度訂單有很多提前，人們試圖提前存貨，誰知道第二天的關稅是多少，這將從第二季度開始，我們在補貨之前就賣光了，還是您認為今年的訂單量會連續強勁增長？

Right, so we don't believe that we've seen any pull forward in trying to beat the tariffs. What we have not seen any evidence of that. We do believe and, I think we basically alluded to this through our comments, that on the temperature control preseason, which have nothing to do with the timing of that has nothing to do with tariffs, we get those orders in really mostly towards the end of the previous year and start working on them. Those often can ship either towards the end of the first quarter. Or the beginning of the 2nd quarter in any given year. This year they were a little bit more front loaded, so we would expect to see kind of an offset on the preseason portion of temperature control, but beyond that we haven't seen any customer behavior that suggests they're trying to get ahead of the tariffs.

是的，所以我們認為，在試圖擊敗關稅方面，我們沒有看到任何進展。我們還沒有看到任何這方面的證據。我們確實相信，而且我認為我們基本上透過我們的評論提到了這一點，在溫度控制季前賽中，這與時間無關，與關稅無關，我們實際上大多在去年年底收到這些訂單並開始處理它們。這些產品通常可以在第一季末發貨。或任何一年的第二季開始。今年他們前期投入了更多精力，因此我們預計會看到季前溫度控制部分有所抵消，但除此之外，我們還沒有看到任何表明他們試圖領先於關稅的客戶行為。

Okay, and then one final question as you think about the retailers' treatment of these tariffs. Are you hearing from them that they're pretty open to your passing them through, or is it a tough negotiation because they're concerned about just sort of the price shock on the consumer?

好的，當您考慮零售商對這些關稅的處理時，還有最後一個問題。您是否聽到他們說他們非常願意讓您通過，或者這是一場艱難的談判，因為他們擔心價格衝擊對消費者造成影響？

Well, certainly everything is a negotiation, but we, we're in communications with all of them, and we believe that our approach to it where there's a sharing of it by us working upstream on mitigation efforts and an expectation that they would take on the balance, we feel good that the process that we developed going back to, 2018, '29 tariffs will be sticky and that we'll build with them a program that says, look, I think we're in a very volatile time. I don't think the tariffs as they stand today are going to continue to be what they are. I think we're going to continue to see movements up or down, hopefully down. And we'll develop processes with our customers that allow us to adjust accordingly so as long as we continue to be fair and rational, we believe that our program will be well received.

嗯，當然一切都是談判，但我們正在與他們所有人溝通，我們相信，我們處理這個問題的方法是通過我們在緩解措施的上游工作來分享它，並期望他們會採取平衡措施，我們很高興我們制定的流程可以追溯到 2018 年，'29 年的關稅將是固定的，我們將與他們一起建立一個計劃，告訴他們，看，我認為我們正處於一個非常動盪的時期。我認為，目前的關稅不會繼續維持下去。我認為我們將繼續看到上漲或下跌的趨勢，希望是下跌。我們將與客戶一起制定流程，以便我們進行相應調整，只要我們繼續保持公平和理性，我們相信我們的計劃將會受到歡迎。

Great thank you.

非常感謝。

Thank you sir.

謝謝您，先生。

Carolina Jolly with Gabelli.

卡羅萊納喬利 (Carolina Jolly) 和加貝利 (Gabelli)。

Great, thanks for taking my questions.

太好了，感謝您回答我的問題。

Morning Carolina

早晨卡羅萊納

Morning, just a quick clarification question, any current impact from tariffs in first quarter?

早安，我只想快速澄清一下問題，第一季關稅有任何影響嗎？

Yeah, hi Carolina, it's Nathan. No, we didn't really see any impact of tariffs from new tariffs that is that came in in 2025 in our Q1 numbers, obviously a little bit of cash flow impact is that the tariffs are paid up front, but as the cost has to work its way through the inventory and so any cost impact comes later in the year.

是的，你好，卡羅萊納，我是內森。不，我們在第一季的數據中並沒有看到 2025 年新關稅的任何影響，顯然對現金流有一點影響，因為關稅是預先支付的，但由於成本必須透過庫存來計算，因此任何成本影響都會在今年稍後出現。

Okay perfect thanks for that and then second, the quarter came in pretty strong, definitely above our estimates can you kind of discuss, given that you maintained guidance any benefits you saw in the first quarter that you don't necessarily expect to roll through, and I know you discussed the pre-buy and everything, but anything else.

好的，非常感謝。第二，本季表現相當強勁，絕對超出了我們的預期，鑑於您維持的指導，您能否討論一下您在第一季度看到的任何好處，而這些好處您不一定會期望實現，我知道您討論了預購和一切，但其他任何事情。

Yeah, I think, as Eric mentioned about preseason ordering and temp control right you kind of have to look at that segment certainly as a as a first half year every year, and so there was a little bit of selling ahead of this time last year, for that segment, so you know that plays into keeping the guidance where it was certainly that was an outsized impact on the quarter, and I think just coming out of the first quarter with all the uncertainty around tariffs and how we'll deal with them, others will deal with them, felt like it was good to keep our guidance where it was, then update accordingly as we go through the year.

是的，我認為，正如 Eric 提到的季前訂購和溫度控制，你必須將這個部分視為每年的上半年，因此，對於這個部分來說，去年這個時候之前有一些銷售，所以你知道，這有助於保持指導，這肯定對本季度產生了巨大的影響，我認為在第一季度剛剛開始時，圍繞關稅的所有不確定性以及我們將如何處理它們，其他人將如何處理它們全年的指導。

Alright thank you.

好的，謝謝。

Scott Stember with Roth.

史坦伯 (Scott Stember) 與羅斯 (Roth)。

Yeah, just, following up on the facility move that you guys are undergoing in in Kansas, can you maybe talk about the status of that, costs related in in the quarter, whether the total cost for the year have changed and any synergy updates.

是的，只是跟進你們在堪薩斯州進行的設施搬遷，您能否談談該設施的現狀、本季度的相關成本、全年總成本是否發生了變化以及任何協同更新。

Okay. Hi Scott, it's Jim Burke. Yes, we're right in the midst of, updating Shawnee with the installation, the automation that we put in there, currently, well, just to refresh everybody's memory, we plan to move into the Shawnee facility to move the top moving numbers from our Virginia Lewisville facility risk avoidance top A&B numbers and also then shed the facility that we have in Edwardsville, Kansas. We've implemented an automation project that's there and that's in testing at the moment. We'll be moving more product in shortly in mid-25, and then it'll be complete our plan by the end of 2025 with the temperature control product that's moving in there.

好的。你好，史考特，我是吉姆伯克。是的，我們正在對肖尼工廠進行安裝更新，我們在那裡安裝的自動化設備，目前，只是為了讓大家記憶猶新，我們計劃遷入肖尼工廠，將弗吉尼亞州路易斯維爾工廠的頂級移動號碼移出，規避風險，同時還將我們位於堪薩斯州愛德華茲維爾的工廠遷出。我們已經實施了一個自動化項目，目前正在測試中。我們將在 2025 年中期推出更多產品，到 2025 年底，隨著溫度控制產品的推出，我們的計畫將全面完成。

Regarding the cost within the quarter, I'll let Nathan respond.

關於本季內的成本，我會讓 Nathan 回應。

Yeah, hey Scott, it's Nathan. So going back to when we started, the startup for the warehouse coming out of 2023 really, we talked about something like a 6 million to 8 million. Dollar incremental cost startup range and then that would come down over time we're kind of still seeing that in that same range so you know in the quarter, a couple million dollars related to the warehouse and then as we get fully operational later this year, we can update more on how that cost is looking.

是的，嘿，史考特，我是內森。所以回到我們剛開始的時候，倉庫的啟動時間實際上是在 2023 年，我們談論的是 600 萬到 800 萬美元左右。美元增量成本啟動範圍，然後隨著時間的推移會下降，我們仍然看到它在同一範圍內，所以你知道在本季度，與倉庫相關的幾百萬美元，然後隨著我們在今年晚些時候全面投入運營，我們可以更多地了解該成本的情況。

Got it thanks again.

明白了，再次感謝。

And it does appear that there are no further questions at this time. I would now like to turn the call back to management for any additional or closing remarks.

目前看來沒有其他問題了。現在我想將電話轉回給管理層，請他們發表任何補充或結束語。

Thank you, and we want to thank everyone for participating in our conference call today. We understand there's a lot of information presented, and we'll be happy to answer any follow up questions you may have. Our contact information is available on our press release or investor relations website. We hope you have a great day. Thank you.

謝謝大家，我們要感謝大家今天參加我們的電話會議。我們知道這裡有很多信息，我們很樂意回答您可能有的任何後續問題。我們的聯絡資訊可在我們的新聞稿或投資者關係網站上找到。我們希望您度過愉快的一天。謝謝。

This does conclude today's program. Thank you for your participation. You may disconnect at any time and have a wonderful afternoon.

今天的節目到此結束。感謝您的參與。您可以隨時斷開連接並度過美好的下午。