Sensata Technologies Holding PLC (ST) 2024 Q3 法說會逐字稿

Good day and welcome to the Sensata Technologies third quarter 2024 earnings call. (Operator Instructions). Please note this event is being recorded.

美好的一天，歡迎參加森薩塔科技 2024 年第三季財報電話會議。（操作員說明）。請注意此事件正在被記錄。

I would now like to turn the conference over to Mr. James Entwistle, Senior Director of Investor Relations. Please go ahead.

現在我想將會議交給投資者關係高級總監 James Entwistle 先生。請繼續。

Thank you, Betsy and, and good afternoon, everyone. I'm James Entwistle, Senior Director of Investor Relations for Sensata, and I would like to welcome you to Sensata's third quarter 2024 earnings conference call. Joining me on today's call are Martha Sullivan, Sensata's Interim President and CEO; and Brian Roberts, Sensata's Chief Financial Officer.

謝謝貝特西，大家下午好。我是 Sensata 投資者關係資深總監 James Entwistle，歡迎您參加 Sensata 2024 年第三季財報電話會議。參加今天電話會議的還有森薩塔臨時總裁兼執行長瑪莎·沙利文 (Martha Sullivan)；以及 Sensata 財務長 Brian Roberts。

In addition to the financial results press release we issued earlier today, we will be referencing a slide presentation during today's conference call. The PDF of this presentation can be downloaded from Sensata's Investor Relations website. This conference call is being recorded and we will post a replay on our investor relations website shortly after the conclusion of the call.

除了我們今天早些時候發布的財務業績新聞稿外，我們還將在今天的電話會議上引用幻燈片演示。本簡報的 PDF 版本可從森薩塔的投資者關係網站下載。本次電話會議正在錄音，我們將在電話會議結束後不久在投資者關係網站上發布重播。

As we begin, I would like to reference Sensata's Safe Harbor Statement on slide 2. During this conference call, we will make forward-looking statements regarding future events or the financial performance of the company that involve certain risks and uncertainties. The company's actual results may differ materially from the projections described in such statements.

在我們開始之前，我想參考投影片 2 上的森薩塔安全港聲明。在本次電話會議中，我們將對涉及某些風險和不確定性的未來事件或公司財務表現做出前瞻性陳述。本公司的實際結果可能與此類聲明中所述的預測有重大差異。

Factors that cause such differences include but are not limited to those discussed in our Forms 10-Q and 10-K as well as other filings with the SEC. We encourage you to review our GAAP financial statements in addition to today's presentation. Most of the information that we will discuss during today's call will relate to non-GAAP financial measures.

導致此類差異的因素包括但不限於我們的 10-Q 和 10-K 表格以及向 SEC 提交的其他文件中討論的因素。除了今天的演示之外，我們鼓勵您查看我們的 GAAP 財務報表。我們在今天的電話會議中討論的大部分資訊都與非公認會計原則財務指標有關。

Our GAAP and non-GAAP financials including reconciliations are included in our earnings release and in the appendices of our presentation materials. Martha will begin today with comments on our overall business. Brian will cover our detailed results for the third quarter of 2024 and our financial guidance for the fourth quarter of 2024. Martha will then return for some closing remarks. We will then take your questions.

我們的 GAAP 和非 GAAP 財務資料（包括調整表）包含在我們的收益發布和簡報資料的附錄中。瑪莎今天將從對我們整體業務的評論開始。Brian 將介紹我們 2024 年第三季的詳細表現以及 2024 年第四季的財務指引。瑪莎隨後將回來發表一些結束語。然後我們將回答您的問題。

Now, I would like to turn the call over to Sensata's Interim President and CEO, Martha Sullivan.

現在，我想將電話轉給森薩塔臨時總裁兼執行長瑪莎·沙利文 (Martha Sullivan)。

Thank you, James, and good afternoon, everyone. Let me welcome James Entwistle as our new Senior Director of Investor Relations. James joined us in September after spending the last 11 years at Stellantis including the last three years as their Investor Relations Manager.

謝謝詹姆斯，大家下午好。讓我歡迎 James Entwistle 成為我們新任投資者關係資深總監。James 於 9 月加入我們，此前他在 Stellantis 工作了 11 年，其中過去三年擔任投資者關係經理。

Now turning to slide 3. Our third quarter core operating results were in line with expectations and demonstrate positive early returns from our efforts to improve operational efficiency, drive execution and expand margins. For example, during the quarter, there were three key developments.

現在轉到投影片 3。我們第三季的核心經營業績符合預期，並展示了我們提高營運效率、推動執行和擴大利潤率的努力所帶來的正面的早期回報。例如，本季出現了三個關鍵進展。

First, we completed the sale of the insights business to a subsidiary of Balmoral Funds. Second, we eliminated low growth, low-margin products of approximately $30 million of quarterly revenue. As expected, we were about 60% completed on our product life cycle management initiatives as of September 30, and expect to be nearly finished by year-end. As a reminder, in total, we had identified approximately $200 million of annualized revenue in connection with these efforts.

首先，我們完成了將洞察業務出售給 Balmoral Funds 的子公司。其次，我們淘汰了季度營收約 3,000 萬美元的低成長、低利潤產品。正如預期的那樣，截至 9 月 30 日，我們的產品生命週期管理計畫已完成約 60%，預計到年底將接近完成。提醒一下，我們總共確定了與這些努力相關的約 2 億美元的年收入。

Third, we commenced several operational improvement initiatives focused on streamlining process, increasing automation, reducing overhead expense, and aligning capital expenditures to a lower market reality. These steps will prove critical as we return in 2025 to a more normalized environment of operating productivity offsetting price downs with our OEM customers.

第三，我們啟動了多項營運改善舉措，重點是簡化流程、提高自動化程度、減少管理費用以及根據較低的市場現實調整資本支出。隨著我們在 2025 年恢復到營運生產力更正常化的環境，以抵消 OEM 客戶的價格下跌，這些步驟將變得至關重要。

I am encouraged by our team's progress over the last 90 days and I'm confident that these ongoing initiatives will provide additional benefit as we continue to navigate a difficult end market environment, especially in our performance sensing segment.

我對我們團隊在過去 90 天中取得的進展感到鼓舞，我相信這些正在進行的舉措將在我們繼續應對困難的終端市場環境時提供額外的好處，特別是在我們的性能感測領域。

As we turn to slide 4. For the third quarter, both automotive and heavy vehicle off-road markets decreased by approximately 5% year-over-year with further erosion likely in the fourth quarter. During my long tenure with Sensata, we have weathered many challenging auto cycles, and we have a track record of performing through periods of end market volatility. We are taking actions to align our business to the demand environment as needed. Outgrowth in our performance sensing segment was flat in the third quarter as an approximate percentage point of decline in automotive, primarily due to OEM share shipped in China was offset by outgrowth within HVOR, most notably in North American and European on-road trucks.

當我們轉向投影片 4 時。第三季度，汽車和重型車輛越野市場年減約 5%，第四季可能進一步下滑。在森薩塔的長期任職期間，我們經歷了許多具有挑戰性的汽車週期，並且我們擁有在終端市場波動時期表現出色的記錄。我們正在採取行動，根據需要使我們的業務適應需求環境。我們的性能感測領域的成長在第三季持平，汽車產業下降了大約一個百分點，這主要是由於中國的 OEM 出貨份額被 HVOR 的成長所抵消，尤其是北美和歐洲的公路卡車。

Let me take a minute to walk through some of the trends we are experiencing in each of our key regions. The market in China continues to evolve with the large multinational players losing share to local OEMs. By the end of the year, it is expected that nearly two-third of market share will be held by local OEMs. In comparison, that number was around 55% last year.

讓我花一點時間來回顧我們在每個關鍵地區正在經歷的一些趨勢。中國市場持續發展，大型跨國企業的份額被本土原始設備製造商奪走。預計到今年底，本土整車廠將佔據近三分之二的市場份額。相比之下，去年這一數字約為 55%。

Today, this is a headwind for us. As our content per vehicle on local OEM is approximately half of our content per vehicle on a multinational. While we continue to win new business with key local OEMs, especially those with aspirations outside of China, this headwind will likely impede our ability to outgrow the market in China for what we expect to be the next 12 to 18 months.

今天，這對我們來說是一個逆風。因為我們在本地 OEM 上每輛車的內容大約是跨國公司每輛車上內容的一半。雖然我們繼續贏得主要本地原始設備製造商的新業務，尤其是那些有志於中國以外地區的原始設備製造商，但這種逆風可能會阻礙我們在未來12 至18 個月內超越中國市場的成長能力。

Excluding China, our automotive business fared better in Q3 despite weakening markets as we recorded approximately 400 basis points of outgrowth mix in Europe was favorable as ICE vehicle production remains more robust than originally forecasted. Strong content per vehicle in North America driven by positive platform mix contributed to solid market outgrowth and other Asian markets such as Korea continue to perform and outperform.

除中國外，儘管市場疲軟，但我們的汽車業務在第三季度表現較好，因為我們記錄了歐洲約 400 個基點的成長組合，因為內燃機汽車的生產仍然比最初預測的更加強勁。在積極的平台組合的推動下，北美每輛車的內容豐富，促進了市場的穩健成長，而韓國等其他亞洲市場則繼續表現並跑贏大盤。

Looking ahead to Q4, based on our fill rates, discussions with customers and current inventory levels on hand at OEM and on dealer lots, we believe it to be highly likely that third-party forecasters will make further in-quarter downward revisions to production forecast. And we have taken this incremental downside risk into account and our updated fourth quarter guide.

展望第四季度，根據我們的填充率、與客戶的討論以及 OEM 和經銷商批次的現有庫存水平，我們認為第三方預測者很有可能進一步下調季度產量預測。我們已經考慮到了這種增量下行風險並更新了第四季度指南。

Within our heavy vehicle and off-road business, we have also seen significant revisions downward in the fourth quarter outlook for on-road truck in both North America and Europe as KGP updated their forecast to be down approximately 20% year-over-year for both markets.

在我們的重型車輛和越野業務中，我們還看到北美和歐洲公路卡車第四季度的前景大幅下調，因為 KGP 更新了其預測，將同比下降約 20%。

This growth rate expectation is approximately 25% lower in their July report. New regulations in Europe, which require tire pressure sensing will help offset some of the market softness. However, the lower production levels, coupled with continued sluggish construction and agricultural demand has caused us to temper expectations for this segment in the near term.

他們 7 月報告中的這一成長率預期大約降低了 25%。歐洲要求輪胎壓力感測的新法規將有助於抵消部分市場疲軟的影響。然而，生產水準較低，加上建築和農業需求持續低迷，導致我們近期下調了對該領域的預期。

Now let me turn to Sensing Solutions. First, I will speak to our industrial business. While our expectations remain muted in industrial overall, given continued inventory destocking and a slow housing market, we are encouraged by our third quarter results, which showed the business stabilize on a year-over-year basis and deliver approximately 2% growth sequentially. We remain excited about the opportunity for our new A2L leak detection sensor as we continue to win incremental share in this new space. This product will ramp in Q4 and and into 2025.

現在讓我談談感測解決方案。首先，我會談談我們的工業業務。儘管我們對工業整體的預期仍然較低，但考慮到庫存持續去庫存和房地產市場緩慢，我們對第三季度的業績感到鼓舞，該業績顯示業務同比穩定，並實現了約 2% 的環比增長。隨著我們繼續在這個新領域贏得增量份額，我們對新型 A2L 洩漏檢測感測器的機會仍然感到興奮。該產品將於第四季和 2025 年開始量產。

Additionally, as announced in September, our Dynapower business gained approval for its new fifth generation compact power systems family of power conversion technology, offering dual-purpose performance for both hydrogen production and fuel cells. We expect this system as well as Dynapower's family of power conversion, energy storage and Rectifier products to continue to drive growth across several important verticals such as hydrogen and renewables, industrials and e-mobility.

此外，正如 9 月宣布的那樣，我們的 Dynapower 業務的新型第五代緊湊型電力系統系列電力轉換技術獲得了批准，為氫氣和燃料電池提供雙重用途的性能。我們預計該系統以及 Dynapower 的電源轉換、儲能和整流器產品系列將繼續推動氫能和再生能源、工業和電動車等幾個重要垂直領域的成長。

While our expectations remain high for Dynapower, this business has not been immune from the overall slowdown in clean energy and electrification initiatives over the last 12 months. As such, the change in timing for these projects resulted in a non-cash goodwill impairment charge of $150 million recorded in the quarter. We remain committed to the Dynapower business and its clean energy initiatives and its role as an important growth engine for Sensata over the coming years.

儘管我們對 Dynapower 的期望仍然很高，但該業務也未能倖免於過去 12 個月清潔能源和電氣化計劃整體放緩的影響。因此，這些專案時間的變化導致本季記錄了 1.5 億美元的非現金商譽減損費用。我們仍然致力於 Dynapower 業務及其清潔能源計劃及其作為森薩塔未來幾年重要成長引擎的作用。

Next, speaking to our aerospace business within Sensing Solutions. This business continues to perform well. However, we are closely monitoring any exposures related to the ongoing labor and quality issues impacting our key customers.

接下來，談談我們感測解決方案中的航空航太業務。該業務繼續表現良好。然而，我們正在密切監控與影響我們主要客戶的持續勞動力和品質問題相關的任何風險。

Before turning the call over to Brian, let me take a moment to update you on our CEO search. Our Board and I have spent significant time over the last six months to find the right next leader of Sensata. We have been fortunate to meet highly qualified candidates who recognize the value of Sensata to our customers, to our shareholders and to our team. I am pleased to report that we are in the final stages of the search. And we expect to continue to land in the time frame that we had guided.

在將電話轉給布萊恩之前，讓我花點時間向您介紹我們執行長搜尋的最新情況。在過去的六個月裡，我們的董事會和我花了大量時間來尋找森薩塔的下一任合適的領導者。我們很幸運能夠遇到高素質的候選人，他們認識到森薩塔對我們的客戶、股東和團隊的價值。我很高興地報告，我們正處於搜尋的最後階段。我們預計將繼續在我們指導的時間範圍內落地。

I will now turn the call over to Brian, who will discuss our third quarter results in more detail as we provide guidance for the fourth quarter of 2024.

我現在將把電話轉給 Brian，他將在我們為 2024 年第四季提供指導時更詳細地討論我們的第三季業績。

Thank you, Martha. Good afternoon, everyone. Just a reminder for clarity that unless noted, all amounts are denominated in US dollars. Let me start on slide 6. As Martha stated, we delivered another solid quarter with results in line with expectations across our key core operating metrics. We reported revenue of approximately $983 million for the third quarter of 2024 as compared to revenue of $1 billion in the third quarter of 2023 and a decrease of about 2%.

謝謝你，瑪莎。大家下午好。只是為了清楚起見，除非另有說明，否則所有金額均以美元計價。讓我從幻燈片 6 開始。正如瑪莎所說，我們又實現了一個穩健的季度，其關鍵核心營運指標的結果符合預期。我們報告 2024 年第三季的營收約為 9.83 億美元，而 2023 年第三季的營收為 10 億美元，下降了約 2%。

Adjusting for approximately $30 million of revenue exited in Q3 2024 related to our product life cycle management efforts, revenue year-over-year would have been up 1%. Adjusted operating income was $188 million, representing a margin of 19.2%, which was an improvement of 20 basis points sequentially and from the second quarter of 2024. This is our third consecutive quarter of delivering adjusted operating margin expansion and is in line with our expectations to deliver margin expansion each quarter this year.

在 2024 年第三季與我們的產品生命週期管理工作相關的約 3,000 萬美元收入進行調整後，營收將年增 1%。調整後營業收入為 1.88 億美元，利潤率為 19.2%，較 2024 年第二季較上季提高 20 個基點。這是我們連續第三個季度實現調整後的營業利潤率擴張，符合我們今年每季實現利潤率擴張的預期。

Adjusted earnings per share of $0.86 in the third quarter was in line with expectations. Adjusted earnings per share were $0.91 in the third quarter of 2023. The year-over-year change was primarily driven by lower revenue and foreign currency fluctuation. Our Q3 2024 GAAP results include impacts from several discrete events which have been excluded from our adjusted results. Let me take a moment to walk you through these items.

第三季調整後每股收益為 0.86 美元，符合預期。2023 年第三季調整後每股收益為 0.91 美元。年比變化主要是由於收入下降和外匯波動造成的。我們的 2024 年第三季 GAAP 業績包括幾個離散事件的影響，這些影響已被排除在我們的調整後業績之外。讓我花點時間向您介紹這些項目。

First, as Martha noted, we recorded a non-cash charge of approximately $150 million to write down goodwill related to the Dynapower acquisition from 2022. While we remain excited for the future of Dynapower, the business experienced project delays as time lines related to clean energy and electrification shift. The resulting delayed growth and cash flow expectations for the business necessitated the impairment of goodwill.

首先，正如瑪莎所指出的，我們記錄了約 1.5 億美元的非現金費用，用於從 2022 年起沖減與 Dynapower 收購相關的商譽。雖然我們對 Dynapower 的未來仍然感到興奮，但隨著清潔能源和電氣化相關時間線的變化，該業務經歷了專案延遲。由此導致的業務成長延遲和現金流預期導致商譽減損。

Second, we completed the sale of our insights business to a subsidiary of Balmoral Funds for $165 million. As a result of the transaction, we recorded a loss on the sale of approximately $110 million. Third, last quarter, we commenced a series of actions to exit $200 million in annualized revenue comprised of products, which may be maturing cycle, slow growing and at substandard margins.

其次，我們以 1.65 億美元的價格完成了將洞察業務出售給巴爾莫勒爾基金 (Balmoral Funds) 子公司的交易。由於此次交易，我們錄得約 1.1 億美元的銷售損失。第三，上個季度，我們開始採取一系列行動，退出由產品組成的 2 億美元年化收入，這些產品可能處於成熟週期、成長緩慢且利潤率不達標。

Approximately 80% to 85% of this revenue is in our performance sensing segment with the remainder in Sensing Solutions. Consistent with expectations, we eliminated approximately 60% of these products in the third quarter with the remainder expected to be substantially completed by year-end.

這筆收入的約 80% 至 85% 來自我們的績效感測領域，其餘收入來自感測解決方案。與預期一致，我們在第三季淘汰了約 60% 的此類產品，其餘產品預計將在年底前基本完成。

As a result of this product life cycle management effort, we recorded a charge of approximately $58 million, $31 million of which is recorded in restructuring and $27 million, which is recorded within cost of sales. Finally, as part of our broader tax mitigation strategy, we released a valuation allowance related to certain intellectual property assets resulting in a discrete tax benefit of approximately $258 million. This tax benefit will amortize over 15-years and should help us keep our tax rate stable over the next few years.

由於這項產品生命週期管理工作，我們記錄了約 5,800 萬美元的費用，其中 3,100 萬美元記錄在重組中，2,700 萬美元記錄在銷售成本中。最後，作為我們更廣泛的減稅策略的一部分，我們發布了與某些智慧財產權資產相關的估值津貼，從而帶來了約 2.58 億美元的離散稅收優惠。這項稅收優惠將在 15 年內攤銷，並應有助於我們在未來幾年內保持稅率穩定。

Turning to slide 7, on segment performance. Performance sensing revenue in the third quarter of 2024 was approximately $660 million, a decrease of approximately 5% year-over-year. The decrease is attributable to our product life cycle management actions as well as the slowing automotive market.

轉向幻燈片 7，關於分段效能。2024年第三季績效感測收入約6.6億美元，較去年同期下降約5%。這一下降歸因於我們的產品生命週期管理行動以及汽車市場放緩。

Adjusted operating margin for the segment of 24.5% was unchanged sequentially and down 1 percentage point year-over-year due primarily to regional share mix within auto. Sensing solutions revenue in the third quarter of 2024 of approximately $274 million was flat with the prior year. While not yet returning to growth, our industrial business appears to have stabilized as continued destocking has been offset by the launch of our A2L leak detection center.

該部門調整後的營業利潤率為 24.5%，與上一季持平，年減 1 個百分點，這主要是由於汽車領域的區域份額組合所致。2024 年第三季感測解決方案營收約 2.74 億美元，與前一年持平。雖然尚未恢復成長，但我們的工業業務似乎已經穩定下來，因為我們的 A2L 洩漏檢測中心的啟動抵消了持續的去庫存。

Adjusted operating expenses of $65.2 million included within our corporate and other segment was down 3% sequentially from the second quarter and approximately flat year-over-year. We continue to actively manage our operating expenses and expect further reductions in upcoming quarters as we normalize corporate costs on a revenue base, which excludes both insights and the $200 million of annualized revenue related to our product life cycle management actions.

公司和其他部門的調整後營運費用為 6,520 萬美元，比第二季環比下降 3%，與去年同期基本持平。我們繼續積極管理我們的營運費用，並預計未來幾季將進一步減少，因為我們將公司成本標準化為收入基礎，這不包括與我們的產品生命週期管理行動相關的洞察和2 億美元的年化收入。

Moving ahead to slide 9. I'm pleased to note that our net leverage ratio dropped to 3 times trailing 12 months EBITDA as of September 30, 2024, a drop from 3.2 times net leverage as of June 30, and consistent with our goal to drop below 3 times by year-end. Additionally, we repurchased slightly over 1 million shares in the third quarter, totaling approximately $37 million use of cash.

繼續看投影片 9。我很高興地註意到，截至2024 年9 月30 日，我們的淨槓桿率降至過去12 個月EBITDA 的3 倍，低於截至6 月30 日淨槓桿率的3.2 倍，這與我們每年降至3 倍以下的目標一致-結尾。此外，我們在第三季回購了略多於 100 萬股的股票，總計使用了約 3,700 萬美元的現金。

In July 2024, we redeemed $700 million in bonds that would have matured in October 2025. The repayment was funded by a combination of proceeds from our $500 million bond offering completed in June, along with approximately $200 million of cash on hand. Free cash flow conversion as a percentage of adjusted net income continues to show improvement as we achieved a level of 70% for the second consecutive quarter. This is a result of our renewed focus on working capital, including management of both inventory levels and spend on capital expenditures.

2024 年 7 月，我們贖回了 2025 年 10 月到期的 7 億美元債券。此次償還的資金來自我們 6 月完成的 5 億美元債券發行的收益以及約 2 億美元的手頭現金。自由現金流轉換佔調整後淨利潤的百分比持續顯示出改善，我們連續第二季達到 70% 的水平。這是我們重新關注營運資本的結果，包括庫存水準和資本支出的管理。

We remain confident that we will see our conversion rate finish 2024 in the range of 65% to 70%, consistent with expectations. These many steps are translating to an improved return on invested capital, which increased to 9.9% in the third quarter as compared to 9.8% in the prior quarter and in the prior year.

我們仍然相信，到 2024 年，我們的轉換率將保持在 65% 至 70% 的範圍內，與預期一致。這些舉措正在轉化為投資資本回報率的提高，第三季投資資本回報率從上一季和去年同期的 9.8% 增至 9.9%。

Finally, we announced last week our quarterly Q4 dividend of $0.12 per share, payable to shareholders of record as of November 13. Let me now update you on our expectations for the fourth quarter of 2024, as shown on slide 10.

最後，我們上週宣布第四季股利為每股 0.12 美元，將支付給截至 11 月 13 日登記在冊的股東。現在讓我向您介紹我們對 2024 年第四季的最新預期，如投影片 10 所示。

We expect revenue to be in the range of $870 million to $900 million in the fourth quarter. At the midpoint, this represents approximately a $100 million decrease sequentially from our third quarter revenue. The change is primarily attributable to three items. One, a $50 million decrease due to the sale of the insights business, which closed on September 30. Two, a $20 million decrease related to the ongoing efforts to exit underperforming products. And three, a $30 million decrease due to lower market expectations for our performance sensing segment in North America and Europe, primarily driven by lower vehicle production as OEMs address rising inventories.

我們預計第四季的營收將在 8.7 億美元至 9 億美元之間。從中點來看，這意味著我們第三季的營收比上一季減少了約 1 億美元。這項變化主要歸因於三項。一是由於出售了 9 月 30 日關閉的洞察業務，減少了 5000 萬美元。第二，由於持續努力退出表現不佳的產品，減少了 2,000 萬美元。第三，減少了 3000 萬美元，因為市場對我們在北美和歐洲的性能感測領域的預期降低，這主要是由於 OEM 解決庫存增加問題導致汽車產量下降。

Despite the lower level of revenue, we continue to drive towards improved operational efficiency and believe that we will expand margins by approximately 20 basis points to 19.4% in the fourth quarter consistent with our goal to deliver quarterly operating margin improvement each quarter this year. We continue to proactively adjust our business to the current demand environment.

儘管收入水平較低，但我們繼續努力提高營運效率，並相信第四季度的利潤率將提高約 20 個基點，達到 19.4%，這符合我們今年每季實現季度營運利潤率改善的目標。我們繼續積極調整我們的業務以適應當前的需求環境。

With that, let me turn the call back to Martha.

接下來，讓我把電話轉回給瑪莎。

Thank you, Brian. In summary, let me leave you with a few key messages as we reflect on the third quarter and look ahead to the fourth quarter and 2025. First, it's clear today we are faced with challenging market conditions across the sectors we serve. Volatility has been amplified, especially in auto over the past several months, and it is likely to persist to Q4 and into early 2025 as OEMs modify production levels to adjust for inventory held by them or on dealer lots.

謝謝你，布萊恩。總而言之，在我們回顧第三季度並展望第四季度和 2025 年時，請容許我向您傳達一些關鍵訊息。首先，很明顯，我們所服務的產業如今都面臨著充滿挑戰的市場條件。波動性有所放大，尤其是在過去幾個月的汽車行業，隨著原始設備製造商修改生產水平以調整其或經銷商批次的庫存，波動性可能會持續到第四季度和2025 年初。

We have been through many of these cycles over the years and are actively taking the necessary steps to respond to the current demand environment with a focus on improved execution and better operational efficiency. Second, we are building a solid foundation for 2025 and the future. I am more confident than ever that Sensata has a winning long-term strategy built on high-value sensing, and electrical protection solutions, allowing us to continue to win in a safer, cleaner and more electrified world.

多年來，我們經歷了許多這樣的周期，並正在積極採取必要的措施來應對當前的需求環境，重點是提高執行力和提高營運效率。第二，我們正在為2025年和未來打下堅實的基礎。我比以往任何時候都更有信心，森薩塔擁有基於高價值感測和電氣保護解決方案的致勝長期策略，使我們能夠在一個更安全、更清潔和更電氣化的世界中繼續獲勝。

As regulations increase and our customers look for help to solve comp plus new challenges, we are well positioned as the partner of choice in this period of transformational change. Third, we have an exceptional team in place globally that is committed to driving shareholder value executing for our customers and delivering on our mission. It has been a tremendous opportunity and privilege to connect with colleagues, new and old, who share our goal of developing best-in-class content enabling our customers to lead in their respective markets.

隨著法規的增加以及我們的客戶尋求幫助來解決競爭加新的挑戰，我們處於有利地位，成為這個轉型變革時期的首選合作夥伴。第三，我們在全球擁有一支出色的團隊，致力於推動股東價值，為我們的客戶執行並履行我們的使命。與新舊同事建立聯繫是一個巨大的機會和榮幸，他們與我們有著共同的目標，即開發一流的內容，使我們的客戶能夠在各自的市場中處於領先地位。

I will now turn the call back to James.

我現在將把電話轉回給詹姆斯。

Thank you, Martha. We will now move to Q&A. To allow all of those who wish to ask a question, the opportunity to do so, we will limit each participant to one question. Betsy, please introduce the first question.

謝謝你，瑪莎。我們現在進入問答環節。為了讓所有想要提問的人都有機會這樣做，我們將限制每位參與者只提出一個問題。Betsy，請介紹第一個問題。

(Operator Instructions) Wamsi Mohan, Bank of America.

（操作員指示）Wamsi Mohan，美國銀行。

Thank you so much. Martha, you mentioned that you're baking in more downside to third-party estimates and expecting those to come down. Can you just talk about some magnitude? What are you thinking is ultimately going to transpire from a production assumption standpoint? Or what's baked into your guidance? And given this weak exit rate in 2024, how should we think about 1Q seasonality as well, that would be helpful. Thank you.

太感謝了。瑪莎，您提到您正在考慮第三方估計的更多下行因素，並預計這些數字會下降。能談談一些程度嗎？從生產假設的角度來看，您認為最終會發生什麼？或者你的指導中有哪些內容？鑑於 2024 年退出率疲軟，我們應該如何考慮第一季的季節性，這將會有所幫助。謝謝。

Sure. Hi, Martha. Yeah, the way we're thinking about this is particularly North America and Europe. And so we are somewhere between 200,000 to 300,000 vehicle units below third-party forecasts at this point. as we look ahead to the fourth quarter. And we're not expecting a lot of help beyond that as we move into the first quarter. So in terms of normal seasonality, we would expect normal sort of cost seasonality inside of Sensata, we expect the market is going to not give us a whole lot of help in the first quarter.

當然。嗨，瑪莎。是的，我們思考這個問題的方式尤其是北美和歐洲。因此，目前我們的車輛數量比第三方預測少 20 萬至 30 萬輛。當我們展望第四季時。當我們進入第一季時，我們預計不會有太多幫助。因此，就正常季節性而言，我們預計森薩塔內部會出現正常的成本季節性，我們預計第一季市場不會為我們帶來太多幫助。

Okay. Thank you so much.

好的。太感謝了。

Joe Giordano, TD Cowen.

喬·佐丹奴，TD·考恩。

Hey guys. I have one question on China and then one more high level for Martha, if I could. On China, just to your point of the share change and the significant shifts and where your content sits with the locals, like how do you balance what you want to keep investing in that region? Or like what's the -- how does the strategy evolve, given like the structural changing dynamics for you?

嘿夥計們。如果可以的話，我有一個關於中國的問題，然後向瑪莎提出一個更高層次的問題。關於中國，就您的觀點而言，份額變化和重大轉變以及您的內容與當地人的關係，例如您如何平衡您想要繼續在該地區投資的內容？或者就像什麼一樣——考慮到您的結構變化動態，策略如何發展？

Yes. It's an important question. So the way we're looking at the market is recognizing that there will be consolidation, certainly at the local OEM level. We're focused particularly on locals that have aspirations outside of China, and we're our global position and our innovations are valued. And as we look at that opportunity, it's quite significant. And we continue to add content even on ICE engines. So the market opportunity and the market position is still strong. and the investments make sense, given that we are really leveraging technologies across Sensata, and we're not making unique technology investments inside of China. So we feel good about that investment and the returns that it brings.

是的。這是一個重要的問題。因此，我們看待市場的方式是認識到將會出現整合，當然在本地 OEM 層面。我們特別關注那些在中國以外有抱負的當地人，我們的全球地位和我們的創新受到重視。當我們看到這個機會時，它非常重要。我們甚至還在 ICE 引擎上繼續添加內容。因此市場機會和市場地位仍然強勁。鑑於我們確實在利用森薩塔的技術，而且我們並未在中國境內進行獨特的技術投資，因此這些投資是有意義的。因此，我們對這項投資及其帶來的回報感到滿意。

Martha, if I could just follow up, since you we're away from the CEO role, and I know you're still very involved with the company, but having like that time away and now coming back, like how has it changed like your ability to kind of see things differently now that you were out of that seat for a bit here. And like does it give you that distance that time? Did it give you kind of a different perspective into some of the things that you were seeing years ago?

瑪莎，如果我能跟進一下，因為你已經離開了首席執行官的角色，我知道你仍然非常參與公司的事務，但是就像那段時間離開然後現在回來一樣，就像它發生了怎樣的變化一樣既然你暫時離開了這個座位，你就有能力以不同的方式看待事物。那一次它會給你那麼遠的距離嗎？它是否讓你對幾年前看到的一些事情有了不同的看法？

It did give me a different perspective. And let's recognize that the world is not what it was almost five years ago when I retired. Having said that, I would say that there is clarity that comes with knowing the strength of Sensata and a sense of urgency to make sure that we're performing as well as we can for shareholders. I would also say it's been great. We've got a lot of really strong new talent on the team, including Brian, who's brought, I think, a really good cadence of improvement for our shareholders.

它確實給了我不同的視角。讓我們體認到，世界已經不再是五年前我退休時的樣子了。話雖如此，我想說的是，了解森薩塔的實力和緊迫感會帶來清晰的認識，以確保我們為股東提供盡可能好的表現。我也想說這很棒。我們的團隊中有很多非常強大的新人才，包括布萊恩，我認為他為我們的股東帶來了非常好的改進節奏。

Thank you.

謝謝。

Mark Delaney, Goldman Sachs.

馬克·德萊尼，高盛。

Good afternoon. Thanks for taking my question. With all the product exits and also the Insights divestiture, I'm hoping to better understand what the full magnitude of EBIT margin improvement, those various efforts may bring and how much more there may be off of the 19.2% to 19.5% EBIT margin guidance in the fourth quarter. Maybe it's the full run rate already, but if there's more to come, I'm hoping to understand the magnitude. And on the self-help margin topic, Brian, I think you said you expect to size OpEx appropriately to revenue in 2025. I don't know if you could be more specific around what level to sales you think is appropriate? And if you think you'll be at that ratio next year even if end markets are cyclically soft? Thanks.

午安.感謝您提出我的問題。隨著所有產品的退出以及Insights 的剝離，我希望更了解EBIT 利潤率改善的全部幅度、這些各種努力可能帶來的效果，以及19.2% 至19.5% 的EBIT 利潤率指導可能會帶來多少影響。也許這已經是完整的運行率，但如果還有更多的運行率，我希望了解其大小。關於自助利潤率主題，Brian，我想您說過您希望根據 2025 年的收入調整營運支出的規模。不知道您能否更具體地說一下您認為什麼程度的銷售比較合適？如果您認為即使終端市場週期性疲軟，明年您也會達到這個比率？謝謝。

Sure, Mark. Thanks for the question. So just to run through the pieces, we've talked about that if the margin completely fell to the bottom line immediately upon the exit of the $200 million of annualized products, you would see roughly about a 30 basis point improvement. The challenge with that is it doesn't just fall in back into the bottom. And you can see through our efforts that we do have expenses in the operating expenses SG&A expenses then has to be rationalized to be able to drive towards that lower revenue base, and that's what we're in the process of doing now. In the fourth quarter, we previously said that this could contribute a couple of basis points to the overall fourth quarter benefit.

當然，馬克。謝謝你的提問。因此，為了回顧這些內容，我們已經討論過，如果在退出 2 億美元的年化產品後，利潤率立即完全降至底線，您會看到大約 30 個基點的改善。挑戰在於它不僅會跌回谷底。透過我們的努力，您可以看到我們的營運費用、SG&A 費用中確實有費用，然後必須進行合理化，以便能夠推動較低的收入基礎，這就是我們現在正在做的事情。在第四季度，我們之前曾說過，這可能會為第四季度的整體效益貢獻幾個基點。

And so that's factored into the range that we provided, which is roughly about 20 basis points of improvement, which is consistent with the 20 to 30 basis points of quarterly improvement we've been talking about all year.

因此，這已納入我們提供的範圍內，大約是 20 個基點的改善，這與我們全年討論的 20 到 30 個基點的季度改善一致。

So we're working through that now. We do expect some of those cost initiatives to continue as we're moving forward and trying to adjust to what we think market environment may be. I'm not sure that there's incremental to be seen, as Martha mentioned, typically seasonal -- seasonality in Q1 is a challenging quarter for Sensata as we do move back towards the historical price down environment. And we do offset that with productivity, but productivity comes in over time. So the work to do still in our planning efforts to be able to get more clarity for both Q1 and 2025, and I'm sure we'll update you on that on next quarter's call.

所以我們現在正在解決這個問題。我們確實預計，隨著我們不斷前進並努力適應我們認為的市場環境，其中一些成本措施將繼續下去。我不確定是否會出現增量，正如瑪莎提到的那樣，通常是季節性的——第一季的季節性對森薩塔來說是一個充滿挑戰的季度，因為我們確實回到了歷史價格下跌環境。我們確實用生產力來抵消這一點，但生產力是隨著時間的推移而提高的。因此，我們的規劃工作仍在繼續，以便能夠更加明確第一季和 2025 年的情況，我相信我們會在下個季度的電話會議上向您通報最新情況。

And just on the Insight piece with the exit, just help us to understand the effect of that on EBIT margin, please?

關於退出的洞察部分，請幫助我們了解其對息稅前利潤率的影響，好嗎？

Yes. I mean in is actually a little -- believe it or not, it was a little bit accretive this year, just given some of the cleanup that happened with that business and preparing it for sale. So there's really no incremental benefit this year for. But again, overall, if you look at the level of operating and G&A expenses that came with that business, the level of investment that would continue to be required for us was just too high. Ultimately, it was one of the main drivers for us to decide to move on from them.

是的。我的意思是實際上是一點——不管你信不信，今年的增長有點多，只是考慮到該業務進行了一些清理並準備出售。所以今年確實沒有增量收益。但總的來說，如果你看看該業務帶來的營運和一般管理費用水平，你會發現我們繼續需要的投資水平太高了。最終，這是我們決定放棄他們的主要驅動力之一。

Thank you.

謝謝。

Christopher Glynn, Oppenheimer.

克里斯托弗·格林，奧本海默。

Thanks, good afternoon. And was curious talked about operating efficiencies and driving execution, expanding margins. I was wondering if you could discuss some specifics obviously, you have the product line exits. But I mean around how you manage internal accounts, internal reporting channels, any production line changes, examples of that. What's going on to -- behind the headlines that you're highlighting?

謝謝，下午好。並且很好奇談論了營運效率、推動執行、擴大利潤。我想知道您是否可以顯然討論一些具體細節，您有產品線出口。但我指的是如何管理內部帳戶、內部報告管道、任何生產線變更等範例。您所強調的頭條新聞背後到底發生了什麼事？

Yeah. Honestly, it's getting back on track to a lot of blocking and tackling that have been part of Sensata for quite a while. And then just recognizing the disruptions that we went through as many companies did around inflation, around COVID, around supply chain, it's really important that we get back on track with those processes. So lots of examples things like smart automation, given that we've seen labor rates increase from where they've been even two or three years ago, and we get a really nice return on that investment. And those things can happen quickly inside of a year.

是的。老實說，它正在重回正軌，大量的攔截和鏟斷已經成為森薩塔相當長一段時間的一部分。然後，只要認識到我們像許多公司一樣在通貨膨脹、新冠疫情、供應鏈方面所經歷的破壞，我們就必須讓這些流程回到正軌，這一點非常重要。鑑於我們已經看到勞動力價格比兩三年前有所上升，所以有很多像智慧自動化這樣的例子，而且我們從這項投資中獲得了非常好的回報。這些事情可能會在一年內迅速發生。

We've done things like lean reimplementation in some of our production sites to ensure that we're looking at process mapping and eliminating process steps that we don't need to do that makes everybody more efficient and makes them more cost effective and it makes their jobs easier.

我們在一些生產基地做了精益重新實施等工作，以確保我們正在研究流程圖並消除我們不需要做的流程步驟，這使每個人都更有效率，並使他們更具成本效益，這使得他們的工作更輕鬆。

So there's a lot of goodness that comes with this renewed focus. Another area I would talk about is design-driven cost reduction. So if you look at our core sensing business, some of those technologies have been around now for decades, and they're still very high-margin products. And they stay that way because we invest in delivering design changes that reduce cost, make them competitive and also ensure that we enhance our margins. So those are just some of the examples.

因此，這種重新關注帶來了許多好處。我要談論的另一個領域是設計驅動的成本降低。因此，如果你看看我們的核心感測業務，其中一些技術已經存在了幾十年，而且它們仍然是利潤率非常高的產品。它們之所以能維持這種狀態，是因為我們投資於交付設計變更，以降低成本、提高競爭力並確保提高利潤。這些只是其中的一些例子。

Okay, thanks. And then on the exits, I was curious, are there any interesting cases where you've tested price on the way out and found that those products are -- will stay?

好的，謝謝。然後在退出時，我很好奇，是否有任何有趣的案例，您在退出時測試了價格並發現這些產品會留下來？

Well, we were with you until you made the last comment. So some of the exits do include just pricing our way out of the market. That's a smaller piece of the overall. But the reality is these are -- when products get to this point in their life cycle, they're really beyond sort of investment or go-to-market strategies that are going to change because many of those things would have been exercised over the years.

好吧，我們一直在你身邊，直到你發表最後一條評論。因此，一些退出確實包括透過定價退出市場。這是整體中較小的一部分。但現實是，當產品到達其生命週期的這一點時，它們確實超出了即將發生變化的投資或進入市場策略的範圍，因為其中許多事情都會在整個生命週期中得到執行。

Okay. Thank you.

好的。謝謝。

Shreyas Patil, Wolfe Research.

施雷亞斯·帕蒂爾，沃爾夫研究中心。

Thanks. Maybe following up on some of the earlier questions, it looks like you're doing a really good job of reducing cost, and that's helping reduce the decremental margin impact even as revenue is under pressure. I'm curious if you can unpack some of the measures that you're taking? And how much runway do you have to further reduce cost from here? And I believe you mentioned price downs potentially normalizing more going forward. So how should we think about that maybe slowing the pace of which you can continue to improve margin, assuming the end markets remain weak? Thanks.

謝謝。也許跟進一些先前的問題，看起來你在降低成本方面做得非常好，這有助於減少利潤下降的影響，即使收入面臨壓力。我很好奇您能否透露您正在採取的一些措施？您還有多少跑道可以進一步降低成本？我相信你提到價格下跌可能會讓未來更加正常化。那麼，假設終端市場仍然疲軟，我們該如何看待可能會放慢繼續提高利潤率的步伐呢？謝謝。

Thanks Absolutely. So again, -- this business, and we've openly talked about is notoriously hard to grow margins in the first quarter. So sequentially, Q4 to Q1 is always a challenge in this business. And quite candidly, I expect it will be a challenge for this business in 2025.

絕對感謝。再說一次，我們公開談論過的這項業務在第一季很難提高利潤率。因此，從第四季度到第一季始終是該業務的挑戰。坦白說，我預計 2025 年這對這項業務來說將是一個挑戰。

As we get back to that more normalized environment. Productivity efforts, many of which Martha just pointed to as examples have been underway, and a lot of that will help offset some of those cost -- or costs that will come into the our market, if you will, or in our business, but they take time. And so some of those layer in over a little bit of time, and we have to adjust to those. And so we're always looking for different ways to be able to get more efficient I think additionally to what Martha mentioned before, we looked very hard before we're adding costs.

當我們回到那個更正常化的環境。瑪莎剛才提到的生產力工作已經在進行中，其中許多工作將有助於抵消其中一些成本，或者是進入我們市場（如果你願意的話）或進入我們業務的成本，但是他們需要時間。因此，其中一些會持續一段時間，我們必須適應這些。因此，我們一直在尋找不同的方法來提高效率，我認為除了瑪莎之前提到的之外，我們在增加成本之前也非常努力地考慮。

I think that's a level of discipline that we brought to the company this year that has served us well, especially in a market environment that has certainly softened over here over the back half of the year. I think, again, for a ['25] planning perspective, we've got a lot of work to do in our plan. So it'll probably become a little bit clearer how we're thinking about margins as we get into next year. I will say and what we have said is our goal for 2025 is to be able to expand margins from where we are in 2024.

我認為，我們今年為公司帶來的這種紀律對我們很有幫助，特別是在今年下半年明顯疲軟的市場環境下。我再次認為，從 ['25] 規劃的角度來看，我們的計劃還有很多工作要做。因此，進入明年，我們對利潤率的考慮可能會變得更加清晰。我想說的是，我們已經說過，我們 2025 年的目標是能夠在 2024 年的基礎上擴大利潤率。

Samik Chatterjee, JPMorgan.

薩米克‧查特吉，摩根大通。

This is [MP] on for Samik Chatterjee. So I have a question around the electrification programs. So you mentioned that some of the delays related to electrification programs. Can you please expand on that? And also, how does this impact your ability to hit the electrician target of $2 billion by 2026. And I have a follow-up.

這是 Samik Chatterjee 的 [MP]。我對電氣化計劃有一個疑問。所以你提到一些與電氣化計劃有關的延誤。能詳細說明一下嗎？此外，這對您在 2026 年達到 20 億美元電工目標的能力有何影響。我有一個後續行動。

Yeah. So the areas in the marketplace where we've seen the greatest delays are in North America and also in Europe. One of the great things about our business model is that we are well hedged against those delays when you look at the position that we have on ICE vehicles and all plug-in hybrids. So we do expect that the platforms will come back and electrification will continue to happen in automotive and actually in the HVOR market as well. We have some commercial truck applications that we're focused on.

是的。因此，我們看到延遲最嚴重的市場區域是北美和歐洲。我們的商業模式的一大優點是，當你看看我們在內燃機汽車和所有插電式混合動力汽車上的地位時，我們可以很好地對沖這些延誤。因此，我們確實預計這些平台將會回歸，並且電氣化將繼續在汽車領域以及實際上在 HVOR 市場中發生。我們有一些我們重點關注的商用卡車應用。

So we expect this to be an important growth driver in automotive and commercial truck also quite frankly, in parts of our industrial end markets as well, where we are engaged with a similar technologies and meeting similar needs for efficiencies, whether they be heat pumps or infrastructure around charging stations, or power conditioning units that we provide via our Dynapower business. So we're still quite bullish on the opportunity, but we're making sure that our burn rate is aligned to the market timing.

因此，坦白說，我們預計這將成為汽車和商用卡車的重要成長動力，在我們的部分工業終端市場中也是如此，我們在這些市場中採用類似的技術並滿足類似的效率需求，無論是熱泵還是熱泵。因此，我們仍然非常看好這個機會，但我們要確保我們的燒錢率與市場時機保持一致。

Okay. Got it. And the follow-up here I have is like any early thoughts into 2025, how you're thinking about the business? And like what are your assumptions about the end markets, like which are expected to be positive, which are expected to be negative and something around that?

好的。知道了。我的後續行動就像對 2025 年的任何早期想法一樣，您對這項業務有何看法？就像你對終端市場的假設是什麼，例如哪些預計會是正面的，哪些預計將是負面的，等等？

Yeah. I would say at this point, certainly through the first half of 2025, we're not expecting any help from the market. So as we have in the fourth quarter here, we've taken some judgment against third-party forecasters. And we're looking at those forecasts very critically as we roll into 2025. So we're not expecting help from any particular end market, at least through the first half of the year.

是的。我想說的是，在這一點上，當然到 2025 年上半年，我們預計市場不會提供任何幫助。正如我們在第四季度所做的那樣，我們對第三方預測者做出了一些判斷。當我們進入 2025 年時，我們會非常認真地審視這些預測。因此，我們預計不會來自任何特定終端市場的幫助，至少在今年上半年是如此。

Okay. Thank you.

好的。謝謝。

Luke Junk, Baird.

路克垃圾，貝爾德。

Thank you. I wanted to ask a big picture question in kind of bridging on the electrification question we just had. And just wondering is the CEO search process now used its conclusion, just wanted to reveal to you about the strategic direction of the company from here? Does it inform reemphasizing auto and electrification, does it maybe push towards diversifying the company and pushing more on some of the market opportunities within Sensing Solutions? Just any insights from the search process would be helpful. Thank you.

謝謝。我想問一個大局問題，以彌補我們剛剛提出的電氣化問題。只是想知道執行長搜尋過程現在是否使用了其結論，只是想從這裡向您透露公司的策略方向？它是否意味著重新強調汽車和電氣化，是否可能推動公司多元化並更多地利用感測解決方案中的一些市場機會？從搜尋過程中獲得的任何見解都會有所幫助。謝謝。

Yeah. I think what I would reiterate are some of the characteristics that we've talked about that we believe are important in the next CEO of Sensata. And those are certainly the ability to drive technology road map, the ability to enhance innovation. Also, automotive experience, we think, is important given the profile of our business. I think any changes to the strategy will come from the new CEO, and it's important that, that person has the time to lay that out.

是的。我想我要重申的是我們已經討論過的一些特徵，我們認為這些特徵對於森薩塔下一任執行長來說非常重要。這些當然是驅動技術路線圖的能力，增強創新的能力。此外，我們認為，考慮到我們的業務概況，汽車經驗也很重要。我認為對策略的任何改變都將來自新任首席執行官，重要的是，該人有時間提出這一點。

William Stein, Truist Securities.

威廉·斯坦，Truist 證券公司。

Great. Thank you for taking my questions. First, Martha, I think you said that you're expecting to fill that role in the same time frame that you outlined earlier. Can you remind us what you've said in the past about that was that by the end of this year or a different time frame?

偉大的。感謝您回答我的問題。首先，瑪莎，我認為您說過您希望在您之前概述的同一時間範圍內填補該職位。您能否提醒我們您過去曾說過，是在今年年底還是其他時間範圍內？

Yes. When I came into the role in -- on May 1, of this year, we spent some time looking at how long does it actually take on average to fill CEO roles when you're searching on the outside and that ranges from 6 months to 12 months. So that's the time line. We're very confident of landing squarely in that time frame.

是的。當我今年 5 月 1 日上任時，我們花了一些時間研究當你從外部尋找人才時，填補執行長職位實際上平均需要多長時間，範圍從 6 個月到12個月。這就是時間軸。我們非常有信心在那個時間範圍內完全降落。

Okay. Thank you. And you clearly don't sound too optimistic about the markets, even if you're doing a great job on cost cutting at least through the first half of the year. I wonder if you might give us sort of your early views as to production -- auto production growth for 2025 and maybe remind us of the outgrowth algorithm that you believe you can achieve on the top line. Thank you.

好的。謝謝。而且您顯然對市場不太樂觀，即使您至少在今年上半年在削減成本方面做得很好。我想知道您是否可以向我們介紹一下您對生產（2025 年汽車產量成長）的早期看法，也許還可以提醒我們您認為可以在營收上實現的成長演算法。謝謝。

So I think it's really early for us to be talking probably from a market perspective of what we think is going to happen in auto. I mean as we've all seen, it's continued to change not even month-to-month, but in some cases, day by day. And so certainly a few more months worth of data will help us solve as I think we get a better picture on '25 for what our growth looks like. I think, again, what we're doing on our side is trying to make sure that we take action. We're trying to make sure that we're controlling what we can control and it's as Martha has pointed out, really focusing on execution and efficiency. We'll continue to react to whatever the market drives.

因此，我認為現在從市場角度談論我們認為汽車行業將發生的事情還為時過早。我的意思是，正如我們都看到的那樣，它甚至不是逐月變化，而是在某些情況下，日復一日地變化。因此，接下來幾個月的數據肯定會幫助我們解決問題，因為我認為我們可以更好地了解 25 年的成長情況。我再次認為，我們正在做的就是努力確保我們採取行動。我們正在努力確保我們控制我們可以控制的事情，正如瑪莎所指出的那樣，真正專注於執行和效率。我們將繼續對市場的推動做出反應。

I think the only other thing I would add is that there are important product launches that are planned in 2025 that will bring value for our customers and for us. What we have seen in down markets and even in the volatility of the market, given mix changes across ICE, plug-in hybrids, changes on the commercial truck side. We have in the past seen that while they are planned early in the year, these things can push out. So that's one of the reasons we're taking the time to really understand what our outgrowth can be and what that end market will be.

我想我唯一要補充的是，計劃在 2025 年推出重要產品，這將為我們的客戶和我們帶來價值。鑑於內燃機、插電式混合動力車以及商用卡車方面的變化，我們在低迷的市場甚至市場的波動中看到了這一點。我們過去已經看到，雖然這些事情是在年初就計劃好的，但這些事情可能會被推遲。因此，這就是我們花時間真正了解我們的成長成果以及最終市場將是什麼的原因之一。

Thank you.

謝謝。

Steven Fox, Fox Advisors.

史蒂文‧福克斯，福克斯顧問公司。

Hi, good afternoon. For my one question, I was just hoping we could dig a little bit more into the HVOR market. You mentioned that there was another cut in terms of market forecast. I know it's been under pressure for a while now. I was just wondering if you could sort of describe where we're at versus a potential bottom, how this cycle is differing from prior cycles, et cetera. Thanks very much.

嗨，下午好。對於我的一個問題，我只是希望我們能夠更多地挖掘 HVOR 市場。您提到市場預測再次下調。我知道它已經承受壓力有一段時間了。我只是想知道您是否可以描述我們所處的位置與潛在的底部，這個週期與之前的周期有何不同，等等。非常感謝。

Yes. We began to see on the commercial truck side of the business, we began to see a slowdown in that market in the second half of 2024 and have seen that accelerate a bit, really in line in this case with what we're hearing from third-party forecasts, and we use KGB in particular. So not a mystery when you look at where those production forecasts are.

是的。我們開始看到商用卡車業務方面的情況，我們開始看到該市場在2024 年下半年出現放緩，並且看到這種情況有所加速，在這種情況下與我們從第三方聽到的情況非常一致-政黨預測，我們特別使用克格勃。因此，當您查看這些產量預測時，就不難理解了。

Yeah. I mean on-road China was a little bit stronger in the first half of the year. And I think our expectation was that, that was going to normalize a little bit in the back half, which seems to be I think the piece that we wrote, I don't want to say surprised by, but certainly have seen kind of come to fruition, is that North America and Europe haven't had the rebound that people were expecting. And so that the negative year-over-year declines in both of those markets according to KGP as a third-party sources, down 20%. So it's a significant drop in volume from what where they were a year ago. And so hopefully, we're nearing the bottom of that cycle and hopefully that will start to turn, but we're not sure exactly when.

是的。我的意思是，今年上半年中國的公路賽表現稍強。我認為我們的期望是，這將在後半部分正常化一點，這似乎是我認為我們寫的文章，我不想說感到驚訝，但肯定已經看到了某種程度的實現結果是，北美和歐洲並沒有出現人們預期的反彈。根據第三方消息來源 KGP 的數據，這兩個市場都出現年比負跌幅，下降了 20%。因此，與一年前相比，數量大幅下降。因此，我們希望我們已經接近這個週期的底部，並且希望這種情況能夠開始轉變，但我們不確定具體是什麼時候。

Great that's helpful.

太好了，很有幫助。

(Operator Instructions)

（操作員說明）

Joseph Spak, UBS.

約瑟夫‧斯帕克，瑞銀集團。

Hi, [Zack Wild] on for Joe back today. Thinking about Europe next year and the CO2 regulations going on there. Like any early thoughts about like either be potentially going higher or less ICE vehicles be produced? Like, how do you think Sensata is positioned for that development? Kind of any puts or takes with that?

嗨，[扎克·懷爾德]今天替喬回來了。想想明年的歐洲以及那裡正在實施的二氧化碳法規。就像任何早期的想法一樣，要么提高產量，要么減少生產內燃機汽車？例如，您認為森薩塔如何為這項發展定位？有什麼看跌期權或看跌期權嗎？

I think we're positioned quite well, frankly, just given our content on ICE engines and given the growing content that we have on BEV. So Today, we are still slightly less content on a BEV, so full electric vehicle in Europe. And so that slowdown has actually, in some cases, been a positive for us. Difficult to know where the next year. A big piece of that is what does the consumer wants, and that's been part of the slowdown. So we're paying attention, but we haven't completely developed our projections for 2025.

坦白說，我認為我們的定位非常好，考慮到我們關於 ICE 引擎的內容以及我們關於 BEV 的內容不斷增長的情況。所以今天，我們對 BEV（歐洲的全電動汽車）的滿意度仍然略低。因此，在某些情況下，經濟放緩實際上對我們來說是正面的。很難知道明年會在哪裡。其中很大一部分是消費者想要什麼，也是經濟放緩的一部分。所以我們正在關注，但我們還沒有完全制定 2025 年的預測。

This concludes our question-and-answer session. I would like to turn the conference back over to Brian Roberts for any closing remarks.

我們的問答環節到此結束。我想將會議轉回布萊恩·羅伯茨（Brian Roberts）發表閉幕詞。

Thank you, Betsy, and thank you, everyone, for joining the call today. We do look forward to seeing you with various investor events this quarter. We have a pretty full agenda. At the moment, we're planning to participate in the following events, November 12, next Tuesday at the RW Barrier 2024 Global Industrial Conference in Chicago. Next Wednesday, the 13th of the JPMorgan Equity Opportunities Forum in Miami. On December 3, we'll be at the UBS Global Industrial and Transportation Conference in West Palm Beach. December 12 in New York City at the Melius Research Industrial Forum. And finally, I'll be participating virtually with both Evercore for a fireside chat on December 10. And with Chris and the Oppenheimer team on December 11. So pretty full agenda coming up.

謝謝貝特西，也謝謝大家今天加入電話會議。我們非常期待在本季的各種投資者活動中見到您。我們有一個相當完整的議程。目前，我們計劃參加以下活動，即 11 月 12 日、下週二在芝加哥舉行的 RW Barrier 2024 全球工業大會。下週三，第十三屆摩根大通股權機會論壇將在邁阿密舉行。12 月 3 日，我們將參加在西棕櫚灘舉行的瑞銀全球工業和運輸會議。12 月 12 日在紐約市舉行的 Melius 研究工業論壇。最後，我將與 Evercore 一起參加 12 月 10 日的爐邊談話。12 月 11 日與克里斯和奧本海默團隊一起。非常完整的議程即將到來。

I appreciate everybody joining today, and we look forward to speaking with you again over the conferences in the next quarter. That concludes the third quarter earnings conference call. Operator, you may now end it.

我感謝今天大家的加入，我們期待在下個季度的會議上再次與您交談。第三季財報電話會議到此結束。接線員，您現在可以結束它了。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。