Sensata Technologies Holding PLC (ST) 2020 Q2 法說會逐字稿

Good day, and welcome to the Sensata Technologies Second Quarter 2020 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 2020 年第二季財報電話會議。（操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to Mr. Jacob Sayer, Vice President of Finance. Please go ahead.

現在我想將會議交給財務副會長 Jacob Sayer 先生。請繼續。

Thank you, Constantinos, and good morning, everyone. I'd like to welcome you to Sensata's Second Quarter 2020 Earnings Conference Call. Joining me on today's call are Jeff Cote, Sensata's CEO and President; and Paul Vasington, Sensata's Chief Financial Officer.

謝謝康斯坦丁，大家早安。歡迎您參加森薩塔 2020 年第二季財報電話會議。參加今天電話會議的還有 Sensata 執行長兼總裁 Jeff Cote；和保羅‧瓦辛頓 (Paul Vasington)，森薩塔科技財務長。

In addition to the financial results, press release that 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. We'll post a replay of today's webcast shortly after the conclusion of today's 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。我們將在今天的電話會議結束後不久發布今天網路廣播的重播。

As we begin, I would like to reference Sensata's safe harbor statement on Slide 2. During the course of this conference call, we'll 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. Factors that might cause such differences include, but are not limited to, those discussed in our Forms 10-Q and 10-K as well as other subsequent filings with the SEC.

在我們開始之前，我想參考幻燈片2 上的森薩塔安全港聲明。 。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。可能導致此類差異的因素包括但不限於我們的 10-Q 和 10-K 表格以及隨後向 SEC 提交的其他文件中討論的因素。

On Slide 3, we show Sensata's GAAP results for the second quarter of 2020. We encourage you to review our GAAP financial statements in addition to today's presentation. Most of the subsequent information that we will discuss during today's call will relate to our non-GAAP financial measures. Reconciliations of our GAAP to non-GAAP financial measures are included in our earnings release and in our presentation material, the company provides details of its segment operating income on Slides 10 and 11 of the presentation, which are the primary measures management uses to evaluate the business.

在幻燈片 3 上，我們展示了森薩塔 2020 年第二季的 GAAP 業績。除了今天的演示之外，我們鼓勵您查看我們的 GAAP 財務報表。我們將在今天的電話會議中討論的大部分後續資訊將與我們的非公認會計準則財務指標有關。我們的GAAP 與非GAAP 財務指標的調節包含在我們的收益發布和演示材料中，該公司在演示文稿的幻燈片10 和11 上提供了其分部營業收入的詳細信息，這是管理層用來評估商業。

Jeff will begin with a review of our overall business during the second quarter, including the impact from COVID-19 and the strong financial position of the company. He will also discuss Sensata's revenue growth relative to our end markets during the second quarter and first half of 2020. He will then provide an update on recent progress in some of our key megatrend growth areas, including the recent acquisition of PRECO Electronics. Paul will then cover our detailed financials for the second quarter, provide a description of changes in our financial model and liquidity position, provide insight into what we are expecting for our end markets for the balance of the year and then provide select financial guidance for the third quarter of 2020. We will then take your questions after our prepared remarks.

Jeff 將首先回顧我們第二季的整體業務，包括 COVID-19 的影響和公司強勁的財務狀況。他還將討論 2020 年第二季和上半年森薩塔相對於終端市場的收入成長。然後，他將介紹我們一些關鍵大趨勢成長領域的最新進展，包括最近收購 PRECO Electronics。然後，保羅將介紹我們第二季度的詳細財務狀況，描述我們的財務模型和流動性狀況的變化，深入了解我們對今年剩餘時間的終端市場的預期，然後提供精選的財務指導2020 年第三季度。我們將在準備好發言後回答您的問題。

Now I'd like to turn the call over to Sensata's CEO and President, Jeff Cote.

現在我想將電話轉給森薩塔的執行長兼總裁 Jeff Cote。

Thank you, Jacob, and welcome, everyone. I'd like to start with some summary thoughts on our performance as outlined on Slide 4. Sensata recognized the global impact of COVID-19 early, and we took a wide range of actions designed to protect our employees and enable us to meet essential customer demand while enhancing our financial flexibility. Our focus on these priorities and quick action helped us navigate through this unprecedented environment. These actions will help position Sensata to emerge from this worldwide disruption stronger so that we can better serve our customers, employees and shareholders as well as the communities in which we operate.

謝謝你，雅各布，歡迎大家。我想先對投影片4 中概述的我們的績效進行一些總結性思考。重要客戶需求的行動需求，同時增強我們的財務彈性。我們對這些優先事項的關注和快速行動幫助我們度過了這個前所未有的環境。這些行動將幫助森薩塔在這場全球性的顛覆中變得更加強大，以便我們能夠更好地服務我們的客戶、員工和股東以及我們經營所在的社區。

The lockdowns and quarantines that were instituted by governments around the world in response to the spread of COVID-19 caused the end markets we serve to decline almost 40% during the quarter. Our strong market outgrowth during the quarter offset a portion of this market decline, which resulted in our net revenue contracting by 33.9% organically.

世界各國政府為應對 COVID-19 的傳播而實施的封鎖和隔離導致我們服務的終端市場在本季度下降了近 40%。本季我們強勁的市場成長抵銷了部分市場下滑，導致我們的淨收入有機收縮 33.9%。

For the first half, our net revenue decreased 22.3%. We delivered market outgrowth of 750 basis points in our heavy vehicle off-road business, and 890 basis points in our automotive business for the second quarter and 840 basis points and 750 basis points through the first half of 2020, respectively.

上半年，我們的淨收入下降了22.3%。第二季度，我們的重型車輛越野業務實現了 750 個基點的市場成長，汽車業務實現了 890 個基點的市場成長，到 2020 年上半年分別實現了 840 個基點和 750 個基點的市場成長。

Certain customers have delayed some of their product launches for the second half of the year, which will impact our market outgrowth in Q3 and Q4. However, we continue to be confident that our market outgrowth for 2020 and beyond will be sustained in the range of 600 to 800 basis points for heavy vehicle off-road and 400 to 600 basis points for automotive, in part due to our continued new business wins.

某些客戶推遲了下半年的部分產品發布，這將影響我們第三季和第四季的市場成長。然而，我們仍然相信，2020 年及以後，重型越野車市場成長將維持在 600 至 800 個基點，汽車市場成長 400 至 600 個基點，部分原因是我們持續以新業務獲勝。

During the quarter, we closed over $125 million of new business wins, as part of $225 million in new business wins for the first half of 2020. This pace is faster than our average new business wins over the past 5 years and included $108 million in electrification wins. We believe these new business wins demonstrate the mission-critical nature of Sensata's products, as our customers have continued to award new business to us, even in the midst of COVID-19-related shutdowns.

本季度，我們贏得了超過 1.25 億美元的新業務，這是 2020 年上半年 2.25 億美元新業務贏得的一部分。這一速度比過去 5 年我們新業務的平均成長速度還要快，其中包括 1.08 億美元的電氣化業務。我們相信，這些新業務的勝利證明了森薩塔產品的關鍵任務性質，因為即使在與 COVID-19 相關的停工期間，我們的客戶仍繼續向我們授予新業務。

From a demand standpoint, we saw improvements month-to-month during the second quarter, as customer sites reopened in May and ramped up production in June. This trajectory has continued for the first half of July. And on that basis, we anticipate sequential improvements in the third and fourth quarters this year. However, we remain cautious regarding the impact that potential COVID-19 resurgence-related shutdowns may have on this recovery trend.

從需求的角度來看，隨著客戶站點於 5 月重新開放並於 6 月提高產量，我們看到第二季逐月有所改善。7 月上半月，這一趨勢仍在持續。在此基礎上，我們預計今年第三季和第四季將持續改善。然而，我們對潛在的與 COVID-19 捲土重來相關的停工可能對這一復甦趨勢產生的影響保持謹慎態度。

Despite the challenges, we believe we are in a strong financial position and have taken the steps necessary to enhance our financial flexibility. For example, we generated $45 million in free cash flow in the second quarter and $114 million year-to-date. We reduced capital expenditures for the year and aggressively managed our working capital. We lowered our operating expenses in the second quarter through a number of temporary measures and have since implemented permanent cost actions that will align our cost structure to more normalized demand. Paul will address these cost actions later.

儘管面臨挑戰，我們相信我們的財務狀況強勁，並已採取必要措施增強財務靈活性。例如，我們第二季產生了 4,500 萬美元的自由現金流，今年迄今產生了 1.14 億美元。我們今年減少了資本支出，並積極管理我們的營運資金。我們在第二季度透過一系列臨時措施降低了營運費用，此後實施了永久性成本行動，使我們的成本結構適應更加正常化的需求。保羅稍後將討論這些成本行動。

We are seeing enough stability in the markets we serve and our order book to provide financial guidance for the third quarter. Finally, as I will discuss in more detail, we continue to invest in capabilities that will drive our future growth with our acquisition of PRECO Electronics.

我們看到我們服務的市場和訂單簿足夠穩定，可以為第三季提供財務指導。最後，正如我將更詳細討論的那樣，我們將繼續投資能力，透過收購 PRECO Electronics 來推動我們未來的成長。

It was a challenging quarter, but we are pleased with our accomplishments. Now I'd like to discuss our performance by end market in the second quarter of 2020, as outlined on Slide 5. Overall volume during the second quarter was lower than both the first quarter of 2020 and the second quarter of 2019. We reported revenues of $576.5 million which represents an organic revenue decline of 33.9% year-on-year against an overall end market decline of almost 40%.

這是一個充滿挑戰的季度，但我們對我們所取得的成就感到滿意。現在我想討論我們在 2020 年第二季終端市場的表現，如幻燈片 5 所示。我們報告的收入為 5.765 億美元，有機收入年減 33.9%，而終端市場整體下降了近 40%。

Our industrial business decreased 14.6% organically, driven by pandemic-related shutdowns and a global industrial market slowdown of approximately 15.2%. Outperformance in the industrial business was primarily due to growth in our medical equipment business, in particular, providing sensors to ventilator manufacturers.

由於疫情相關的停工和全球工業市場放緩約 15.2%，我們的工業業務有機下降了 14.6%。工業業務的優異表現主要歸功於我們的醫療設備業務的成長，特別是為呼吸器製造商提供感測器。

Our aerospace business decreased 39.4% organically. Reduced production drove 32% end market decline and grounding of planes impacted our aerospace aftermarket business. Global air traffic is currently down 50% from the beginning of the year, which is better than the trough levels in April that were down 80%.

我們的航空航太業務有機下降 39.4%。產量減少導致終端市場下降 32%，飛機停飛影響了我們的航空航太售後市場業務。目前全球航空運輸量較年初下降了 50%，優於 4 月下降 80% 的低谷水準。

Our heavy vehicle off-road business posted an organic revenue decrease of 31.5%, outperforming a 39% end market contraction, representing 750 basis points of market outgrowth. Our China on-road truck business continued to post strong growth as a result of the adoption of NS VI emissions regulations. While our China business grew in the second quarter, we experienced substantial declines in both Europe and the Americas as production levels in these markets declined.

我們的重型車輛越野業務的有機收入下降了 31.5%，優於終端市場 39% 的收縮，相當於市場成長 750 個基點。由於採用 NS VI 排放法規，我們的中國公路卡車業務持續強勁成長。雖然我們的中國業務在第二季有所成長，但由於歐洲和美洲市場的生產水準下降，我們的業務大幅下滑。

Our automotive business posted an organic revenue decrease of 41.6%, outperforming a 50.5% global end market production contraction, representing 890 basis points of market outgrowth. This outgrowth continues to be led by emissions, electrification and safety-related launches as well as slightly better pricing.

我們的汽車業務有機收入下降了 41.6%，優於全球終端市場產量收縮 50.5%，代表市場成長 890 個基點。這種增長繼續由排放、電氣化和安全相關的發布以及稍微更好的定價帶動。

The China automotive end market grew 4.3% in the second quarter versus the prior year, snapping back from the first quarter shutdown-related declines. We do expect the recovery in Europe and the Americas to be more measured where plants were shuttered for the average of 6 to 7 weeks in the second quarter. IHS, and we expect that the global automotive market, will grow sequentially from the second quarter into the third and fourth quarters.

中國汽車終端市場第二季年增 4.3%，扭轉了第一季因停產導致的下滑。我們確實預計歐洲和美洲的復甦將更加謹慎，第二季工廠平均關閉 6 至 7 週。IHS 預計全球汽車市場將從第二季持續成長到第三季和第四季。

During the first quarter, we attributed a portion of automotive revenue growth to supply chain inventory building, especially with Chinese customers. Automotive inventory movements in the second quarter were negligible, although we do believe that there was a shift from China to Europe and North America. We expect global inventory at our customers to return to normalized levels by the end of the year.

第一季度，我們將汽車收入成長的一部分歸因於供應鏈庫存建設，尤其是中國客戶的庫存建設。儘管我們確實認為庫存從中國轉移到了歐洲和北美，但第二季的汽車庫存變動可以忽略不計。我們預計客戶的全球庫存將在年底前恢復到正常水準。

Moving to Slide 6. I want to share some updates about important progress we are making in our key megatrend initiatives. We continue to believe investments in electrification, smart and connected and autonomous megatrends will further our end market diversification, increase our long-term growth rate and provide important competitive advantages as these trends transform our world.

前往投影片 6。我們仍然相信，對電氣化、智慧、互聯和自主大趨勢的投資將進一步促進我們的終端市場多元化，提高我們的長期成長率，並在這些趨勢改變我們的世界時提供重要的競爭優勢。

Despite the impact of COVID-19, we do not see evidence that customers are slowing their investments in these areas. To provide greater transparency into our megatrend spending and the operating performance of our segments, we are moving the cost of these investments from the reporting segments to corporate and other. Paul will discuss this in more detail.

儘管受到新冠肺炎 (COVID-19) 的影響，但我們沒有看到任何證據表明客戶正在放緩在這些領域的投資。為了提高我們的大趨勢支出和部門營運績效的透明度，我們將這些投資的成本從報告部門轉移到企業和其他部門。保羅將更詳細地討論這個問題。

In electrification, we are expanding the solutions we provide for critical applications across all end markets we serve. During the second quarter, we closed another $50 million in electrification new business wins, now $108 million year-to-date. As electrification trends accelerate, driven by broad legislation, such as the European Green new deal, they present increasing opportunities for our solutions, representing an expected $6.5 billion addressable market for Sensata by 2030.

在電氣化領域，我們正在擴展為我們服務的所有終端市場的關鍵應用提供的解決方案。第二季度，我們又贏得了 5,000 萬美元的電氣化新業務，今年迄今已達 1.08 億美元。隨著歐洲綠色新政等廣泛立法的推動，電氣化趨勢加速發展，這為我們的解決方案提供了越來越多的機會，預計到 2030 年森薩塔的潛在市場將達到 65 億美元。

In Smart & Connected, we continue testing proof-of-concepts with several leading fleet managers and are working to turn these efforts into orders by the end of this year. As part of this initiative, we are also working with several telematics companies that will transmit data collected by Sensata's vehicle area network to the cloud in order to provide valuable insights to fleet managers.

在智慧與互聯方面，我們繼續與幾家領先的車隊經理一起測試概念驗證，並努力在今年年底前將這些努力轉化為訂單。作為該計劃的一部分，我們還與多家遠端資訊處理公司合作，將森薩塔車載區域網路收集的數據傳輸到雲端，以便為車隊經理提供有價值的見解。

Our Smart & Connected initiative opens up an expected $1 billion in OEM and $7 billion in fleet management addressable market Sensata by 2030.

到 2030 年，我們的智慧互聯計畫預計將為森薩塔開闢價值 10 億美元的 OEM 市場和價值 70 億美元的車隊管理潛在市場。

In addition, we are increasing our focus on high-growth areas such as industrial IoT, smart manufacturing, buildings and infrastructure. These segments represent fast-growing opportunities that will benefit and drive new business and market out growth for our industrial business unit.

此外，我們也加大對工業物聯網、智慧製造、建築和基礎設施等高成長領域的關注。這些細分市場代表了快速成長的機會，將有利於並推動我們工業業務部門的新業務和市場成長。

Moving to Slide 7. On the autonomy front, on July 1, we closed a small but important acquisition that represents an early step into advanced driver assistance applications. PRECO Electronics based in Boise, Idaho, is a leader in developing radar object detection application for heavy vehicles, providing crucial blind spot detection and side turn assist functionality. Their solutions improve efficiency and overall safety. We believe PRECO is well positioned to benefit from upcoming EU Vulnerable Road User and Other Object Detection regulations and expands our addressable market by $600 million in 2030 with sticky, mission-critical content. While currently a small business with approximately $15 million in net revenue, PRECO's growth potential is substantial. And we believe its differentiated offering will drive strong margins.

轉向幻燈片 7。PRECO Electronics 總部位於愛達荷州博伊西，是重型車輛雷達目標偵測應用開發的領導者，提供重要的盲點偵測和側轉輔助功能。他們的解決方案提高了效率和整體安全性。我們相信 PRECO 處於有利地位，能夠從即將出台的歐盟弱勢道路使用者和其他物體檢測法規中受益，並透過具有黏性的關鍵任務內容，到 2030 年將我們的潛在市場擴大 6 億美元。雖然目前 PRECO 是一家淨收入約為 1500 萬美元的小型企業，但其成長潛力巨大。我們相信其差異化產品將帶來強勁的利潤率。

We see substantial synergies between PRECO and Sensata as well, including leveraging our strong OEM relationships and supply chain. We are pleased with our progress against these megatrend initiatives and intend to continue these efforts that expand the Sensata's markets, provide strong growth and differentiation for our future.

我們也看到 PRECO 和森薩塔之間的巨大協同效應，包括利用我們強大的 OEM 關係和供應鏈。我們對在這些大趨勢舉措方面取得的進展感到高興，並打算繼續努力擴大森薩塔的市場，為我們的未來提供強勁的成長和差異化。

I'd now like to turn the call over to Paul.

我現在想把電話轉給保羅。

Thank you, Jeff. Key highlights for the second quarter, as shown on Slide 9, include revenue of $576.5 million, a decrease of 34.8% for the second quarter of 2019. Organic revenue decreased 33.9%, largely due to the impact of the COVID-19 pandemic and change in the foreign currency decreased revenue by 0.9%.

謝謝你，傑夫。如投影片 9 所示，第二季的主要亮點包括營收 5.765 億美元，比 2019 年第二季下降 34.8%。有機收入下降 33.9%，主要是由於 COVID-19 大流行的影響和外幣變動導致收入減少 0.9%。

Adjusted operating income was $75 million, a decrease of 63.4% compared to the second quarter of 2019, primarily due to lower revenues, productivity headwinds from our manufacturing facilities operating at significantly lower capacity, elevated costs to safeguard our employees and local government restrictions, which all together, impacted our ability to align our costs to contracting end markets. These items were partially offset by temporary cost reductions in the quarter, including salary reductions and furloughs as well as savings from repositioning actions taken last year.

調整後營業收入為 7,500 萬美元，與 2019 年第二季相比下降 63.4%，主要是由於收入下降、產能大幅降低的製造工廠帶來的生產力阻力、保護員工的成本增加以及當地政府的限制，總之，影響了我們根據收縮的終端市場調整成本的能力。這些項目被本季臨時成本削減部分抵消，包括減薪和休假以及去年採取的重新定位行動節省的成本。

Adjusted net income was $27.7 million, a decrease of 81.6% compared with the second quarter of 2019. Adjusted EPS was $0.18 in the second quarter, a decrease of 80.6% compared to the prior year quarter.

調整後淨利為2,770萬美元，較2019年第二季下降81.6%。第二季調整後每股收益為 0.18 美元，比去年同期下降 80.6%。

Now I'd like to comment on the performance of our 2 business segments in the second quarter of 2020. I will start with Performance Sensing on Slide 10. Our Performance Sensing business reported revenues of $385.2 million, a decrease of 40.2% compared to the same quarter last year. Excluding the negative impact from foreign currency of 0.9%, Performance Sensing reported an organic revenue decrease of 39.3%.

現在我想談談我們2020年第二季兩個業務部門的業績。我將從幻燈片 10 上的效能感知開始。我們的性能感測業務收入為 3.852 億美元，比去年同期下降 40.2%。剔除 0.9% 的外匯負面影響，Performance Sensing 的有機收入下降了 39.3%。

Our Automotive business reported an organic revenue decrease of 41.6% but outpaced its end market by 890 basis points. Revenue outgrowth was strong in all major end markets, led by new central launches and mission-critical emissions, electrification and safety applications. Pricing was favorable when compared to the prior year quarter.

我們的汽車業務報告有機收入下降 41.6%，但超出終端市場 890 個基點。在新中央系統的推出以及關鍵任務排放、電氣化和安全應用的帶動下，所有主要終端市場的收入成長都很強勁。與去年同期相比，定價有利。

Our heavy vehicle off-road business reported an organic revenue decrease of 31.5% but outpaced its end market by 750 basis points, primarily from accelerated content growth in China on-road truck business, driven by the adoption of NS VI emission regulations. Consequently, we expect our content growth related to China on-road truck to moderate in the second half of this year.

我們的重型車輛越野業務的有機收入下降了 31.5%，但比終端市場高出 750 個基點，這主要是由於 NS VI 排放法規的採用推動了中國公路卡車業務內容的加速成長。因此，我們預計今年下半年與中國公路卡車相關的內容成長將放緩。

Performance Sensing operating income was $60.8 million, a decrease of 65% as compared to the same quarter last year. Performance Sensing profit as a percentage of revenue was 15.8%. The decrease in segment operating income is due primarily to lower revenues, manufacturing facilities offering at significantly lower capacity and elevated operating costs related to COVID-19, somewhat offset by temporary cost reductions in the quarter as well as savings from restructuring actions taken last year.

Performance Sensing 營業收入為 6,080 萬美元，比去年同期下降 65%。Performance Sensing 利潤佔收入的百分比為 15.8%。部門營業收入下降的主要原因是收入下降、製造設施產能大幅下降以及與COVID-19 相關的運營成本上升，但本季度臨時成本削減以及去年採取的重組行動節省的成本在一定程度上抵消了這一影響。

As shown on Slide 11, Sensing Solutions reported revenues of $191.3 million in the second quarter of 2020, a decrease of 20% as compared to the same quarter last year. Excluding the negative impact from foreign currency of 0.7%, Sensing Solutions organic revenue decreased 19.3%.

如投影片 11 所示，Sensing Solutions 報告 2020 年第二季營收為 1.913 億美元，比去年同期下降 20%。剔除0.7%的外匯負面影響，感測解決方案部門的有機收入下降了19.3%。

In the second quarter, revenue in our industrial business decreased 14.6% organically as industrial end markets contracted 15.2%. And revenue in our aerospace business decreased 39.4% organically from reductions in commercial OEM production and substantially weaker aftermarket.

第二季度，我們的工業業務收入有機下降 14.6%，工業終端市場萎縮 15.2%。由於商業 OEM 生產的減少和售後市場的大幅疲軟，我們的航空航太業務收入自然下降了 39.4%。

Sensing solutions operating income was $55.8 million, a decrease of 28.2% from the same quarter last year. Sensing Solutions profit as a percentage of revenue was 29.2%. The decrease in segment operating income was primarily due to lower revenues, manufacturing facilities operating at significantly lower capacity and elevated operating costs related to COVID-19, somewhat offset by temporary cost reductions in the quarter and savings from restructuring actions taken last year.

感測解決方案營業收入為5,580萬美元，比去年同期下降28.2%。感測解決方案利潤佔收入的百分比為 29.2%。部門營業收入的下降主要是由於收入下降、製造設施的營運能力顯著降低以及與COVID-19 相關的營運成本上升，但在一定程度上被本季度臨時成本削減和去年採取的重組行動節省的成本所抵消。

As Jeff mentioned earlier, we are moving costs related to growth investments in emerging megatrends that are impacting and shaping our end markets from our business segments to corporate and other. This change provides better insight into the underlying operating results of our business segments and increased visibility into our ongoing megatrend investments that are expected to increase from approximately $25 million in 2019 to approximately $35 million this year. The operating profit and operating margins on Slide 10 and 11 reflect the reclassification of these costs. To help with your modeling, we have provided quarterly reconciliations of the segment results for fiscal year 2019 and the first quarter of 2020 in the appendix.

正如傑夫之前提到的，我們正在將與影響和塑造我們的終端市場的新興大趨勢的成長投資相關的成本從我們的業務部門轉移到企業和其他部門。這項變更讓我們能夠更了解我們業務部門的基本經營業績，並提高我們正在進行的大趨勢投資的可見性，這些投資預計將從2019 年的約2,500 萬美元增加到今年的約3,500 萬美元。投影片 10 和 11 的營業利潤和營業利潤率反映了這些成本的重新分類。為了幫助您進行建模，我們在附錄中提供了 2019 財年和 2020 年第一季部門業績的季度調節表。

Corporate and other costs not included in segment operating income were $47.5 million in the second quarter of 2020. Excluding charges added back to our non-GAAP results, corporate and other costs were $40.4 million, a decrease of $3.4 million from the prior year quarter due to lower incentive compensation, lower global support costs from temporary cost actions and favorable foreign currency, somewhat offset by higher megatrend investments.

2020 年第二季度，未計入部門營業收入的公司和其他成本為 4,750 萬美元。不計入非GAAP 業績中的費用，公司及其他成本為4,040 萬美元，比去年同期減少340 萬美元，原因是激勵性薪酬降低、臨時成本行動導致的全球支持成本降低以及有利的外幣匯率，在一定程度上抵消了這一影響透過更高的大趨勢投資。

Slide 12 shows Sensata's second quarter 2020 non-GAAP results. Adjusted gross profit decreased 47.2% as compared to the same quarter last year to $165.4 million, and gross margins decreased 670 basis points to 28.7%. The decrease in gross profit and gross margin reflects lower revenues, largely due to COVID 19. Productivity headwinds from our manufacturing facilities operating at significantly lower capacity, elevated cost of safeguarding our employees and local government restrictions, which all together impacted our ability to align our costs to contracting end markets.

幻燈片 12 顯示了森薩塔 2020 年第二季非 GAAP 業績。調整後毛利較去年同期下降47.2%至1.654億美元，毛利率下降670個基點至28.7%。毛利和毛利率的下降反映了收入的下降，這主要是由於 COVID 19 造成的。我們的生產設施的產能大幅降低、保護員工的成本上升以及當地政府的限制，這些因素都影響了我們將成本與收縮的終端市場保持一致的能力。

R&D costs improved 17.6%, and SG&A costs improved 15.9% from the same quarter last year, with both benefiting from temporary salary reductions and furloughs this quarter, savings from repositioning actions taken last year and favorable foreign currency. As a result, adjusted operating income was down 63.4% compared to the prior year quarter.

與去年同期相比，研發成本下降了 17.6%，SG&A 成本下降了 15.9%，這兩者都受益於本季的臨時減薪和休假、去年採取的重新定位行動帶來的節省以及有利的外匯。因此，調整後營業收入與去年同期相比下降了 63.4%。

Our tax rate as a percent of adjusted profit before tax was 18.2% in the second quarter, up 950 basis points compared to the prior year quarter, primarily due to jurisdictional profit mix. Tax as a percentage of EBIT was 8.4%, up 140 basis points compared to the prior year quarter. We expect tax as a percentage of EBIT in the second half of this year to remain consistent with the second quarter. Finally, adjusted EPS was $0.18, down $0.75 or 80.6% as compared to the second quarter of 2019, as the decrease in adjusted net income was partially offset by the benefit of share repurchases in intervening periods.

第二季度，我們的稅率佔調整後稅前利潤的百分比為 18.2%，比去年同期上升 950 個基點，主要是由於轄區利潤組合所致。稅收佔息稅前利潤的百分比為 8.4%，比去年同期上升 140 個基點。我們預計今年下半年稅收佔息稅前利潤的百分比將與第二季保持一致。最後，調整後每股收益為 0.18 美元，較 2019 年第二季下降 0.75 美元，即 80.6%，因為調整後淨利潤的下降被期間股票回購的收益部分抵消。

On Slide 13, we provide a breakdown of the types of spend that make up our cost structure and their relative size to net revenue. The majority of our costs are variable. These are followed by semi-variable costs, which are structural and scaled to some extent with revenue that requires specific management action to drive change and the remainder are fixed costs.

在投影片 13 中，我們詳細介紹了構成成本結構的支出類型及其與淨收入的相對規模。我們的大部分成本都是可變的。其次是半變動成本，這些成本是結構性的，並在一定程度上與收入成比例，需要特定的管理行動來推動變革，其餘的則是固定成本。

In the second quarter, we incurred year-on-year decremental gross margins of 48%, a 500 basis point improvement from the first quarter of 2020, despite a significant drop in customer demand in the second quarter due to the rapid spread of COVID-19 to North America and Europe.

儘管由於新冠肺炎疫情的迅速蔓延，第二季客戶需求大幅下降，但第二季的毛利率年減了 48%，較 2020 年第一季提高了 500 個基點。

During the second quarter, our manufacturing plants were running at significantly reduced levels. However, better alignment of our manufacturing costs to the lower volume moderated some of the impact related to this volume contraction.

第二季度，我們的製造工廠的運作水準顯著降低。然而，我們的製造成本更好地與銷售下降相結合，緩解了與銷售收縮相關的一些影響。

Manufacturing costs remain elevated during the second quarter to protect and safeguard our employees, to comply with government mandates to pay our direct labor despite not being needed due to our reduced production levels and from higher freight costs as logistics supply chains remain disrupted. To temporarily help mitigate these higher manufacturing costs during the quarter, we reduced salaries from management by 25% and implemented employee furloughs, thereby achieving savings of approximately $22 million, which exceeded our previous savings expectation of $15 million to $20 million.

第二季的製造成本仍然居高不下，以保護和保護我們的員工，遵守政府支付直接勞動力工資的規定，儘管由於我們的生產水平下降以及物流供應鏈仍然中斷導致貨運成本上升而不需要我們的直接勞動力。為了暫時幫助緩解本季度較高的製造成本，我們將管理層的工資減少了25%，並實施了員工休假，從而節省了約2200 萬美元，這超出了我們之前節省1500 萬美元至2000 萬美元的預期。

Recognizing the potential of an extended economic recovery, we have taken a series of actions to structurally reduce our semi-variable cost by about 10% to achieve an expected $60 million to $65 million in savings next year. We have rigorously analyzed our operations and expect that these changes will better align our cost structure to the demand levels that we anticipate over the coming quarters. These cost-saving actions will be largely implemented throughout the second half of 2020 and will generate increasing savings as we progress through the remainder of the year and into early 2021, with about $7 million of savings expected in the third quarter of 2020. The includes an action to reduce our workforce, affecting approximately 980 positions worldwide.

認識到經濟復甦的潛力，我們採取了一系列行動，從結構上將半可變成本降低約 10%，預計明年將節省 6,000 萬至 6,500 萬美元。我們嚴格分析了我們的營運情況，預計這些變化將使我們的成本結構更好地適應我們未來幾季預期的需求水準。這些成本節約行動將在2020 年下半年大部分實施，隨著今年剩餘時間和2021 年初的進展，這些成本節約行動將產生越來越多的節省，預計2020 年第三季將節省約700 萬美元。其中包括一項裁員行動，影響全球約 980 個職位。

Restructuring charges related to this workforce reduction include $35 million to $39 million in people-related charges and $8 million to $10 million in site-related closure costs. During the second quarter, we recognized $26 million of charges related to these actions.

與裁員相關的重組費用包括 3,500 萬至 3,900 萬美元的人員​​相關費用和 800 萬至 1,000 萬美元的場地相關關閉費用。在第二季度，我們確認了與這些行動相關的 2,600 萬美元費用。

Slide 14 demonstrates Sensata's strong liquidity position. We entered the second quarter with approximately $800 million in cash on the balance sheet. On April 1, we drew down $400 million from our revolving line of credit, provided additional financial flexibility. With $45 million in free cash flow generated during the second quarter, we exited the quarter with $1.24 billion in cash on hand. We have substantial buffers to our leverage covenants in our debt agreements, and the first outstanding maturity of our debt is not until October 2023, when a $500 million unsecured note becomes due. Consequently, we are confident our liquidity position is sufficient to enable us to weather a severe downturn.

幻燈片 14 展示了森薩塔強大的流動性狀況。進入第二季度，我們的資產負債表上有大約 8 億美元的現金。4 月 1 日，我們從循環信貸額度中提取了 4 億美元，提供了額外的財務彈性。第二季產生了 4,500 萬美元的自由現金流，本季結束時我們手頭現金為 12.4 億美元。我們的債務協議中的槓桿契約有大量緩衝，而且我們債務的第一個未償還到期日要到 2023 年 10 月，屆時一張 5 億美元的無擔保票據到期。因此，我們有信心我們的流動性狀況足以使我們度過嚴重的低迷時期。

Free cash flow during the second quarter of 2020 was 162% of adjusted net income, a dramatic improvement compared to 66% of adjusted net income in the same quarter last year. We managed working capital effectively during the quarter, reducing inventory by $25.5 million or 5% sequentially from the first quarter.

2020年第二季的自由現金流量佔調整後淨利的162%，與去年同期調整後淨利的66%相比有了顯著改善。我們在本季有效管理了營運資金，庫存比第一季連續減少了 2,550 萬美元，即 5%。

Our capital expenditure guidance for the full year 2020 remains $120 million to $130 million, and we are on track for the first half of 2020.

我們對 2020 年全年的資本支出指引仍為 1.2 億至 1.3 億美元，並且 2020 年上半年我們的資本支出預計將保持在 1.2 億至 1.3 億美元之間。

Lastly, our stock repurchase program remains on hold until end market conditions show greater improvement in stability.

最後，我們的股票回購計畫仍將暫停，直到最終市場狀況顯示出更大的穩定性改善。

On Slide 15, I show a number of economic indicators that we track to help assess future demand for our products and solutions. IHS is our primary third-party source for information on future automotive production. In addition, we monitor key economic indicators such as consumer confidence, and we communicate routinely with our automotive customers to gain alignment on future demand expectations, which all strongly influence our view of the end market.

在投影片 15 上，我展示了我們追蹤的一些經濟指標，以幫助評估我們產品和解決方案的未來需求。IHS 是我們獲取未來汽車生產資訊的主要第三方來源。此外，我們監控消費者信心等關鍵經濟指標，並定期與汽車客戶溝通，以協調未來的需求預期，這些都強烈影響我們對終端市場的看法。

For our heavy vehicle and off-road business, we use various production forecasts from third-party firms such as LMC for on-road production levels and KGP for off-road production levels. We also evaluate economic indicators to gauge the health of our heavy vehicle off-road customers in the markets they serve, which we believe are strongly correlated to the demand for our products. These indicators include freight load factors, inventory sales ratios, building permits, industrial production, crop futures and farm machinery.

對於我們的重型車輛和越野業務，我們使用第三方公司的各種生產預測，例如用於公路生產水準的 LMC 和用於越野生產水準的 KGP。我們也評估經濟指標，以衡量重型車輛越野客戶在其服務的市場中的健康狀況，我們認為這與我們產品的需求密切相關。這些指標包括貨運載運率、庫存銷售率、建築許可、工業生產、農作物期貨和農業機械。

Public statements from our large customers in the construction and agriculture sectors also help to form our view of the market. For our industrial business, we evaluate regional PMI data and forecast for GDP and housing starts to develop a forward-looking view of industrial demand, given their strong correlation with our historical industrial revenue.

我們建築和農業領域大客戶的公開聲明也有助於形成我們對市場的看法。對於我們的工業業務，我們評估地區 PMI 數據以及 GDP 和住房開工率預測，以對工業需求形成前瞻性看法，因為它們與我們歷史工業收入密切相關。

For aerospace, expectations for future OEM, commercial and defense production and passenger miles flown are good indicators of future demand for our aerospace products and aftermarket services.

對於航空航太領域，對未來 OEM、商業和國防生產以及乘客飛行里程的預期是我們航空航太產品和售後服務未來需求的良好指標。

Slide 16 provides details on end market performance year-on-year for the second quarter and expectations for the balance of the year. This data reflects our view of our end markets, leveraging information from third-party forecasters as well as customer order patterns and commercial engagements. The data on this page represents what we know today and is subject to change as customer and economic conditions change.

幻燈片 16 提供了第二季度終端市場同比表現的詳細資訊以及對今年剩餘時間的預期。這些數據反映了我們對終端市場的看法，利用了第三方預測者的資訊以及客戶訂單模式和商業活動。此頁面上的數據代表了我們今天所了解的情況，並且可能會隨著客戶和經濟狀況的變化而變化。

North American automotive production levels are expected to improve sequentially from the second quarter as a result of improving vehicle sales, which are currently at historically low levels and from OEMs ramping up production. Within Europe, customer and business confidence are expected to improve driving vehicle registrations and OEM factory production levels well above the low levels in the second quarter. And in China, after a historic drop in GDP and auto production during the first quarter, vehicle production has snapped back in the second quarter and is expected to moderate through the third and fourth quarters.

由於目前處於歷史低點的汽車銷量的改善以及原始設備製造商的產量增加，預計北美汽車生產水平將比第二季度連續改善。在歐洲，客戶和企業信心預計將改善駕駛車輛註冊和 OEM 工廠生產水平，遠高於第二季的低水平。在中國，在第一季GDP和汽車產量歷史性下降之後，汽車產量在第二季迅速回升，預計第三季和第四季將放緩。

While IHS is a primary data source for developing light vehicle production expectations by region, our market expectations for North America and Europe, as shown on the page, are more conservative than IHS, reflecting our expectation for summer-related shutdowns in Europe and a continued trend of lower customer product take rates relative to initial orders during the quarter.

雖然 IHS 是按地區制定輕型汽車產量預期的主要數據來源，但我們對北美和歐洲的市場預期（如頁面所示）比 IHS 更為保守，反映了我們對歐洲夏季相關停產以及持續增長的預期。本季客戶產品接受率相對於初始訂單呈現下降趨勢。

The heavy vehicle end markets have been in decline globally since the second quarter of 2019. COVID-19-related shutdowns caused a sharp drop in the first quarter in China that spread to North America and Europe during the second quarter accelerating the already downward cycle. However, heavy vehicle off-road production declines year-on-year are expected to ease in the third and fourth quarters, with key economic indicators pointing to sequential growth from the second quarter.

自2019年第二季以來，全球重型汽車終端市場一直在下滑。與 COVID-19 相關的停工導致中國第一季的急劇下降，並在第二季蔓延到北美和歐洲，加速了本已下降的週期。然而，重型汽車越野車產量年減幅預計將在第三季和第四季有所緩解，關鍵經濟指標顯示第二季將較上季成長。

Industrial end markets fared better than other markets in the second quarter, and PMI in all areas of the world improved sequentially. Percentage year-on-year declines for the balance of the year in the industrial space are expected to improve from the second quarter levels.

第二季工業終端市場表現優於其他市場，全球各地區PMI較上季改善。工業領域今年剩餘時間的同比降幅預計將較第二季水準有所改善。

The defense portion of the aerospace end market is expected to remain steady this year, while commercial production is expected to improve from very low levels in the second quarter. As Jeff mentioned earlier, we expect for the company a moderate decrease in market outgrowth in the second half of 2020 as compared to the first half of 2020. However, we are confident that full year and long-term outgrowth will remain in the expected ranges.

航空航太終端市場的國防部分預計今年將保持穩定，而商業生產預計將從第二季度的非常低水平有所改善。正如 Jeff 之前提到的，我們預計該公司 2020 年下半年的市場成長將較 2020 年上半年略有下降。然而，我們有信心全年和長期成長將保持在預期範圍內。

In summary, due to the improvements in end markets from the second quarter, we expect Sensata's revenue performance to improve sequentially each quarter through the balance of the year. In April, we withdrew our full year guidance as the negative impact of the COVID-19 pandemic created great uncertainty and unpredictability for our business.

總而言之，由於第二季終端市場的改善，我們預計森薩塔的營收表現將在今年剩餘時間內每季連續改善。4 月份，由於 COVID-19 大流行的負面影響給我們的業務帶來了巨大的不確定性和不可預測性，我們撤回了全年指引。

During our first quarter call, we highlighted our intention to resume providing financial guidance as soon as practicable. As a result of improving economic conditions and better stability in both customer order patterns and global supply chains, we are providing financial guidance in the third quarter of 2020, as shown on Slide 17.

在第一季電話會議中，我們強調了我們將在切實可行的情況下盡快恢復提供財務指導的意圖。由於經濟狀況改善以及客戶訂單模式和全球供應鏈更加穩定，我們將在 2020 年第三季提供財務指導，如投影片 17 所示。

Our guidance assumes our customers and we are able to keep our manufacturing facilities open despite potential resurgence in the COVID-19 pandemic and government responses to try to prevent the spread of the virus.

我們的指導假設我們的客戶和我們能夠保持我們的生產設施開放，儘管 COVID-19 大流行可能會捲土重來，而且政府會採取措施努力防止病毒傳播。

For the third quarter of 2020, we expect to report revenues between $675 million and $705 million, representing a reported year-over-year revenue decrease between 21% and 17%. At the midpoint of our guidance, we expect that foreign currency will decrease revenues year-over-year by approximately $4.4 million. Excluding the impact of foreign currency, we expect to report an organic revenue decrease of 20% to 17% in the third quarter.

我們預計 2020 年第三季的營收將在 6.75 億美元至 7.05 億美元之間，年減 21% 至 17%。在我們指導的中點，我們預計外幣收入將年減約 440 萬美元。排除外匯影響，我們預計第三季有機收入將下降 20% 至 17%。

Our current fill rate is approximately 94% of the revenue guidance midpoint for the first quarter. We expect to report adjusted operating income between $110 million and $124 million.

我們目前的填充率約為第一季營收指引中點的 94%。我們預計調整後的營業收入將在 1.1 億美元至 1.24 億美元之間。

On the bottom line, we expect to report adjusted net income between $60 million and $74 million, which would represent a decline of 58% to 49% compared to Q3 2019.

總體而言，我們預計調整後淨利潤將在 6,000 萬美元至 7,400 萬美元之間，與 2019 年第三季相比下降 58% 至 49%。

We expect operating margins will expand from Q2 levels sequentially in Q3, primarily due to higher revenue. This includes an expected increase of approximately $15 million in operating expenses sequentially in the third quarter as temporary cost reductions in the second quarter and as the financial benefits from our semi-variable cost reduction programs begin to ramp up.

我們預計第三季的營業利潤率將比第二季的水平連續擴大，這主要是由於收入增加。這包括由於第二季臨時成本削減以及半可變成本削減計劃帶來的財務效益開始增加，預計第三季營運費用將環比增加約 1500 萬美元。

We expect to report adjusted EPS between $0.38 and $0.46, which includes a $0.02 positive impact from foreign currency at the guidance midpoint. We are not currently providing full year financial guidance until longer-term visibility improves.

我們預計調整後每股收益將在 0.38 美元至 0.46 美元之間，其中包括外幣在指導中點帶來的 0.02 美元的正面影響。在長期可見性改善之前，我們目前不提供全年財務指引。

In closing, I will echo Jeff's comments that while we are operating in unprecedented times, I'm very proud of our organization. We have made significant progress in strengthening our business during the quarter despite significant challenges. We are working diligently to ensure Sensata emerges from this time as a stronger and more resilient company.

最後，我同意傑夫的評論，即雖然我們正處於前所未有的時代，但我為我們的組織感到非常自豪。儘管面臨重大挑戰，我們本季在加強業務方面取得了重大進展。我們正在努力工作，確保森薩塔成為一家更強大、更有彈性的公司。

I will now turn the call back to Jeff.

我現在將把電話轉回給傑夫。

Thank you, Paul. Before turning over to Q&A, I want to wrap up with a few key messages, as outlined on Slide 18. We continue to monitor all of our end markets and customers to ensure that our resources are balanced against forecasts and prioritized against critical growth opportunities, and we have taken the necessary actions to align our cost with the market. We remain confident in our ability to deliver attractive end market outgrowth for the full year 2020 and into the future. And this confidence is supported by strong new business wins.

謝謝你，保羅。在開始問答之前，我想以投影片 18 中概述的一些關鍵資訊作為總結。我們繼續監控所有終端市場和客戶，以確保我們的資源與預測保持平衡，並優先考慮關鍵的成長機會，並且我們已採取必要的行動使我們的成本與市場保持一致。我們對在 2020 年全年和未來實現有吸引力的終端市場成長的能力仍然充滿信心。這種信心得到了強勁的新業務勝利的支持。

We continue to deliver solid free cash flow, which demonstrates Sensata's resilient financial model, and we ended the quarter with more than $1.2 billion in cash on hand. We continue to invest in our megatrends and other growth initiatives that are opening up significant new markets for Sensata. And we are making excellent progress as evidenced by the $108 million in new business wins in electrification so far this year and the customer engagement on Smart & Connected. In addition, we continue to believe that the overall market environment may provide interesting opportunities to further strengthen our portfolio through strategically important value-creating acquisitions such as PRECO Electronics.

我們繼續提供穩定的自由現金流，這體現了森薩塔富有彈性的財務模式，本季末我們手頭現金超過 12 億美元。我們繼續投資於大趨勢和其他成長舉措，為森薩塔開闢重要的新市場。今年迄今為止，我們在電氣化領域贏得了 1.08 億美元的新業務，以及智慧互聯方面的客戶參與度，證明了我們正在取得巨大進展。此外，我們仍然相信，整體市場環境可能會提供有趣的機會，透過具有策略意義的創造價值的收購（例如 PRECO Electronics）進一步加強我們的投資組合。

Now I'd like to turn the call back to Jacob.

現在我想把電話轉回雅各。

Thank you, Jeff. For participants, Jeff and Paul are in separate locations this morning, so feel free to direct your questions to one or the other of them. Also, given the large number of listeners on the call, I'd ask each of you to limit yourself to one question and a follow-up. Constantinos, if you would please assemble the Q&A roster.

謝謝你，傑夫。對於參與者來說，傑夫和保羅今天早上在不同的地點，因此請隨意向其中一位或另一位提出您的問題。此外，考慮到電話會議中有大量聽眾，我要求你們每個人只提出一個問題和一個後續問題。康斯坦丁諾斯，請整理問答名單。

(Operator Instructions)

（操作員說明）

The first question is from the line of Mark Delaney with Goldman Sachs.

第一個問題來自高盛的馬克·德萊尼。

To start, I was hoping to better understand the reason Sensata as being more conservative than IHS for North American and European auto production in the third quarter. Is this conservatism on the part of Sensata in case there's COVID-related factory shutdowns that are anticipated or in case retail demand were softened? Or is this more about what your customers are telling you their production build rates are going to be?

首先，我希望更能理解森薩塔對於第三季北美和歐洲汽車產量比 IHS 更保守的原因。森薩塔的這種保守態度是否是為了應對與新冠疫情相關的工廠停工或零售需求疲軟的情況？或者這更多的是關於您的客戶告訴您他們的生產建造率將會是多少？

Yes. Thanks for the question, Mark. So let me just frame it. We are lower than IHS in terms of expectations in North America and Europe and were slightly higher in China. The net difference is about 1.7 million vehicles across that range, which is substantial in terms of the impact that, that would have on Sensata's revenue. There are really 4 key factors that weighed into our decision around this. The first is clearly regarding caution associated with potential resurgence and lockdowns and impact on demand that, that would result in. There are also some differences between us and what we believe IHS is forecasting regarding the shutdown schedule with our customers, which we're tracking on a customer-by-customer basis. And then the other factors are relating to just generally understanding our customer order patterns. We're coming off a period of time where the volatility and customer order patterns have been substantial. And until we get a better feel for the orders and how they will materialize into revenue, we're taking some caution on that. You'll note that, historically, the order patterns going into the quarter is our best indicator of performance in the quarter. But certainly, we're coming off a period where that isn't as much the case.

是的。謝謝你的提問，馬克。所以讓我把它框起來。我們對北美和歐洲的預期低於 IHS，對中國的預期略高。該範圍內的淨差異約為 170 萬輛汽車，這對森薩塔收入的影響而言是巨大的。實際上有 4 個關鍵因素影響了我們的決定。第一個顯然是對潛在復甦和封鎖以及​​由此導致的需求影響的謹慎態度。我們和我們認為 IHS 預測的關於我們客戶的關閉時間表之間也存在一些差異，我們正在逐個客戶進行追蹤。然後其他因素與大致了解我們的客戶訂單模式有關。我們正經歷一段波動性和客戶訂單模式都非常劇烈的時期。在我們更好地了解訂單以及它們將如何轉化為收入之前，我們對此持謹慎態度。您會注意到，從歷史上看，進入本季的訂單模式是我們本季業績的最佳指標。但可以肯定的是，我們正在經歷一個情況並非如此的時期。

And then the last factor, which is a smaller one, is just the general automotive supply chain and the risk that we wouldn't or our customer wouldn't have a disruption in demand or orders, but there might be some other implication in the broader supply chain, and so we're cautioning for all of the factors which we've outlined. Obviously, if things turn out better, we're prepared to be able to deliver, but it's based upon all of that input.

最後一個因素（較小的一個）只是一般汽車供應鏈，以及我們或我們的客戶不會出現需求或訂單中斷的風險，但可能還有其他一些影響更廣泛的供應鏈，因此我們對我們概述的所有因素發出警告。顯然，如果事情變得更好，我們準備好能夠交付，但它基於所有這些輸入。

That's really helpful, Jeff. And for my follow-up question, the company mentioned in the prepared remarks about the good wins in electrification and even being an acceleration compared to what the company was realizing in new wins than a year ago despite the pandemic. What do you think is leading to that acceleration in bookings? And maybe you can level set investors about where Sensata's content per car stands now for an EV compared to internal combustion engine vehicles?

這真的很有幫助，傑夫。對於我的後續問題，該公司在準備好的評論中提到了電氣化方面取得的良好成果，甚至與一年前該公司在新冠疫情中實現的新成果相比有所加速。您認為是什麼導致了預訂量的加速？也許您可以讓投資人了解，與內燃機汽車相比，森薩塔目前每輛車的含量代表電動車的什麼水平？

Sure. So that and the old quote was across the company. So it's not just automotive, and there's a substantial portion of that, that is outside of the automotive market. My view is to why that's accelerating is that every customer around the world as the electrification trend is continuing, is accelerating their internal programs. We knew that there was going to be eventual escalation as they prepare to launch new platforms that will be more driven toward electrification trends. And so that's what we're seeing. We had talked about the order book that or the -- not the order book, but the opportunity book that we have with our customers, which is very substantial as well. And so it is the material -- it's basically that opportunity set materializing.

當然。所以這句話和舊的報價在整個公司都是如此。因此，不僅僅是汽車產業，而且其中很大一部分是在汽車市場之外的。我的觀點是，這種加速的原因是，隨著電氣化趨勢的持續，世界各地的每個客戶都在加速他們的內部計畫。我們知道，當他們準備推出新平台以更加推動電氣化趨勢時，最終將會升級。這就是我們所看到的。我們討論過訂單簿，或者說——不是訂單簿，而是我們與客戶的機會簿，這也非常重要。所以這就是材料——基本上就是機會集的實現。

In terms of content per vehicle, in the U.S. and Europe, I'll speak generally, it's in the high 30s to low 40s in terms of content per vehicle. When we look at a battery electric vehicle, it's higher than that in the 50 range. So the trend associated with conversion from internal combustion engine to electrification is a positive trend in terms of content per vehicle and therefore, revenue for Sensata.

就每輛車的內容而言，在美國和歐洲，我一般來說，每輛車的內容在 30 多歲到 40 多歲之間。當我們看純電動車時，它比 50 範圍內的要高。因此，從內燃機到電氣化的轉換相關的趨勢對於每輛車的內容而言是一個積極的趨勢，因此對於森薩塔來說也是一個積極的趨勢。

I suggest, we have the next question please.

我建議，我們有下一個問題。

The next question is from the line of Deepa Raghavan with Wells Fargo.

下一個問題來自富國銀行的 Deepa Raghavan。

This question is for Jeff. Just tagging on that comment where you mentioned accelerating internal programs just based on those electrification trends in triangulating to your business wins. In the past, the business wins that were awarded converted over a 3 to 5-year time frame, roughly, is that still the same? Or does that push to electrification change that time line?

這個問題是問傑夫的。只是在評論中提到您提到加速內部計劃只是基於這些電氣化趨勢來三角測量您的業務勝利。過去，獲得的業務勝利大致在3到5年的時間範圍內轉換，現在還是這樣嗎？或者說，電氣化的推動會改變這個時間線嗎？

Yes. So it's pretty much the same where it's variable. Remember, the $108 million is across dozens of programs. So there are lots of factors to consider, but the general development time line associated with electric vehicles is equivalent to that of a combustion engine. When we start to talk about wins in some of the other markets, it may be a shorter period than what we might be normally accustomed for automotive or heavy vehicle off-road, especially when you go into the industrial markets, but the electrification wins in those markets are consistent with those markets, which may tend to be a little bit shorter in terms of the development cycles.

是的。所以它在可變的地方幾乎是相同的。請記住，這 1.08 億美元用於數十個項目。因此，有許多因素需要考慮，但電動車的整體開發時間與內燃機相同。當我們開始談論在其他一些市場的勝利時，這可能比我們通常習慣的汽車或重型越野車的時期要短，特別是當你進入工業市場時，但電氣化在這些市場與那些開發週期可能稍短的市場是一致的。

My follow-up is on your thoughts. It's a little bit of a longer question, but Jeff, can you talk through how the summer production schedule is shaping up? And if I -- let's just say, if we assume stable macros here, when can we expect to return to a more normalized level of production? By that, I don't necessarily being back to pre-COVID, but more from an equilibrium perspective, I'm assuming the summer production was skewed to the upside a little bit. But -- and if you can focus -- and if you can just talk through the key regions, U.S., Europe and China on how that normalized production expectations would be from your end, that would be helpful?

我的後續行動是關於你的想法。這是一個有點長的問題，但是傑夫，你能談談夏季生產計劃是如何制定的嗎？如果我——我們只是說，如果我們假設這裡的宏觀穩定，我們什麼時候可以期望恢復到更正常化的生產水平？這樣一來，我不一定會回到新冠疫情之前，但更多的是從均衡的角度來看，我假設夏季產量略有上升。但是，如果你能集中精力，如果你能透過關鍵地區（美國、歐洲和中國）討論你的正常化生產預期將如何，這會有幫助嗎？

Sure. So let me speak to the summer shutdown question first, and then I can go to the comment around normalized demand profile globally. So as I mentioned, we are tracking customer shutdowns at the customer level. What I would tell you is that the observation I would make based upon reviewing that is that for the most part, when you get into the tier level below the OEM, there's a general theme of canceling summer shutdowns. And my expectation is that, that is to catch up to make sure that they're ready to be able to deliver to the broader supply chain.

當然。因此，讓我先談談夏季停工問題，然後我可以就全球正常化的需求狀況發表評論。正如我所提到的，我們正在客戶層級追蹤客戶關閉情況。我要告訴你的是，我根據審查所做的觀察是，在大多數情況下，當你進入 OEM 以下的層級時，有一個普遍的主題是取消夏季停工。我的期望是，趕上以確保他們準備好能夠向更廣泛的供應鏈交付。

When you get to the OEM level, whether it be in automotive or in heavy vehicle or in other markets, it tends to be a little bit more variable. Some are continuing the same shutdown schedules, some are shortening it, and some are canceling it altogether. And again, I suspect that, that's largely driven based upon the demand they see, their inventory positions, how stable their manufacturing operations are. And so it's a wide range across those. But the point of their -- at the Tier level, they tend to be stopping summer shutdowns to try to catch up on demand. And we're seeing signals of that in terms of all of us in our everyday lives in terms of availability of product that we want and the supply chain disruptions that have occurred. And as demand is snapped back, that's created some issues in terms of availability of product.

當你到達 OEM 層面時，無論是在汽車、重型車輛或其他市場，情況往往會更加多變。有的繼續執行相同的關閉時間表，有的縮短關閉時間，還有的完全取消關閉時間表。我再次懷疑，這很大程度上取決於他們看到的需求、庫存狀況以及製造業務的穩定性。所以它的範圍很廣。但他們的重點是——在一級，他們傾向於停止夏季停工，以試圖趕上需求。我們在日常生活中看到了這樣的訊號：我們想要的產品的可用性以及已經發生的供應鏈中斷。隨著需求的回升，產品的可用性產生了一些問題。

In terms of returning to more of a normalized level, that is obviously a very difficult question to answer. But let me break it down a little bit geographically to give you a little bit of insight. So from a China standpoint, things have rebounded quite quickly, right? So in the second quarter, China actually saw a 10% growth in Q2 versus Q2 of the prior year. And we're forecasting growth in the third quarter as well. Lower growth than what we saw year-over-year in the first quarter, but nonetheless growth. So China has snapped back pretty strongly. When you go to the other markets, it's obviously not back to those levels yet, but it's significantly better in the third quarter, and we would expect that trend to continue into the third quarter -- or excuse me, into the fourth quarter as well. And so let me give you some data points, right? So the heavy vehicle off-road market was down Q2 to Q2, about 39%. This is market data, not our revenue, but market data. And then when you go into the third quarter, we're expecting that to be quarter-over-quarter down only 23% to 24%. So an improvement from the second quarter but still pretty significantly off where we were last year at the same time. And you see similar trends across the other end markets we're serving automotive second quarter versus second quarter of last year is down 50% from a market standpoint when you think of Q3 last year versus Q3 this year about 22%. So an improvement sequentially but not back to those levels. And we're watching it very closely. Things are coming back. But again, we're looking at it with an eye of caution given the disruptions that could cause that demand profile to deteriorate.

就恢復到更正常化的水平而言，這顯然是一個非常難以回答的問題。但讓我從地理上對其進行一些分解，以便為您提供一些見解。所以從中國的角度來看，情況反彈得相當快，對嗎？因此，在第二季度，中國實際上比去年第二季度成長了 10%。我們也預測第三季的成長。成長率低於第一季的年比成長率，但仍在成長。因此，中國已經強勁反彈。當你去其他市場時，顯然還沒有回到這些水平，但第三季度明顯好轉，我們預計這種趨勢將持續到第三季度——或者對不起，也持續到第四季度。那麼讓我給你一些數據點，對吧？因此重型車越野市場從第二季到第二季下降了約39%。這是市場數據，不是我們的收入，而是市場數據。然後，當進入第三季時，我們預計將季比僅下降 23% 至 24%。因此，與第二季度相比有所改善，但仍與去年同期相比有很大差距。您會看到我們服務的汽車其他終端市場也出現類似趨勢，從市場角度來看，第二季與去年第二季相比下降了50%，而去年第三季與今年第三季相比下降了約22%。因此，順序有所改善，但不會回到那些水平。我們正在非常密切地關注它。事情正在恢復。但同樣，考慮到可能導致需求狀況惡化的干擾，我們仍以謹慎的態度看待這個問題。

Constantinos, can we have the next question.

康斯坦丁，我們可以提出下一個問題嗎？

The next question is from the line of Samik Chatterjee with JPMorgan.

下一個問題來自摩根大通的 Samik Chatterjee。

This is Bharat on for Samik. So if I could just start with industrial end market, and you highlighted in your prepared remarks that you expect the outlook to improve through the year. So if I could just ask what are some of the pieces of business or subsegments that are maybe stronger versus the other?

這是巴拉特 (Bharat) 代表薩米克 (Samik) 發言。因此，如果我可以從工業終端市場開始，您在準備好的演講中強調，您預計今年的前景將會改善。那麼，我是否可以問一下，哪些業務或細分市場可能比其他業務或細分市場更強大？

And if you could also help us think about how big a exposure you have within the medical end market within industrial?

您是否也可以幫助我們考慮一下您在工業醫療終端市場中的曝光度有多大？

Yes. So the medical end market is not a huge portion of our overall industrial business, but it is an important one. And we took it, obviously, very seriously as these customers started to come to us to look for help associated with temperature or pressure sensors in the market. Across the significant parts of industrial, we have some big segments associated with material handling that we serve major home appliances, lighting, industrial lighting. So there are a variety of end markets. It's truly a diversified industrial segment. But it's important to note in the second quarter, the impact associated with medical devices was about a $10 million impact associated with the revenue related to that initiative that we had. So it felt good to get the revenue. It felt good to serve the community in terms of being able to deliver on that.

是的。所以醫療終端市場在我們整個工業業務中所佔的比重雖然不是很大，但卻是重要的市場。顯然，當這些客戶開始向我們尋求與市場上溫度或壓力感測器相關的幫助時，我們非常認真地對待它。在工業的重要領域，我們有一些與物料搬運相關的重要領域，我們為主要家用電器、照明、工業照明提供服務。所以有各種各樣的終端市場。這確實是一個多元化的工業領域。但值得注意的是，在第二季度，與醫療設備相關的影響約為 1000 萬美元，與我們該計劃相關的收入相關。所以獲得收入感覺很好。能夠實現這一目標，為社區服務感覺很好。

Got it. And if I could just ask on the acquisition you made in the quarter of PRECO Electronics. You noted that's primarily for HVOR end market right now. So if you could talk about any synergies that you see in terms of leveraging that technology for end markets such as automotive as well in the long term?

知道了。我可以問一下你們在本季對 PRECO Electronics 的收購嗎？您指出，目前這主要針對 HVOR 終端市場。那麼，您是否可以談談您在長期利用該技術應用於汽車等終端市場方面所看到的任何協同效應？

Yes, absolutely. So I think that it's -- today, PRECO is largely serving the on-road and off-road heavy vehicle markets. Again, where there is regulation forthcoming associated with vulnerable road users, pedestrians and cyclists on the road, as you can imagine, with a large vehicle, the risk that the driver doesn't observe those pedestrians or bicyclists is significant. And so there is regulation associated with that. It's a very difficult application because the radar applications need to work with a wide range of truck configurations. And equipment configurations articulating vehicles, and so the radar required -- the radar solution requires a lot of application-specific knowledge and software development to make it work in a way that their aren't false positives or negatives that would make the application unusable on the road.

是的，絕對是。所以我認為，今天，PRECO 主要服務於公路和越野重型車輛市場。同樣，如果即將出台與道路上的弱勢道路使用者、行人和騎自行車者相關的法規，正如您可以想像的那樣，對於大型車輛，駕駛員不觀察這些行人或騎自行車者的風險是巨大的。因此有與之相關的監管。這是一個非常困難的應用，因為雷達應用需要與各種卡車配置一起使用。以及連接車輛的設備配置，以及所需的雷達——雷達解決方案需要大量特定於應用程式的知識和軟體開發，以使其工作方式不會出現誤報或誤報，從而導致應用程式無法在道路。

Beyond the heavy vehicle off-road market, we see opportunities in other industrial applications as well. Less so in the light vehicle market, but it's certainly something that we would be exploring in terms of going there, but it's more around the industrial airport equipment and heavy vehicle off-road markets.

除了重型車輛越野市場之外，我們還看到其他工業應用的機會。在輕型車輛市場上情況較少，但我們肯定會在那裡探索，但更多的是圍繞工業機場設備和重型車輛越野市場。

Next question is from the line of Matt Sheerin with Stifel.

下一個問題來自 Matt Sheerin 和 Stifel。

Jeff, just wanted to follow-up on your commentary. Near-term demand trends in auto, particularly relative to inventory in the supply chain, you did talk earlier about some headwind there, particularly in North America and Europe. How much does that play into your near-term forecast?

傑夫，只是想跟進你的評論。汽車的近期需求趨勢，特別是相對於供應鏈中的庫存而言，您之前確實談到了那裡的一些阻力，特別是在北美和歐洲。這對您的近期預測有多大影響？

Yes. Thanks, Matt. It's not a big number. We had talked about the first quarter there being about a $25 million inventory build. Specifically, as it relates to China customers, we think that migrated away from China into North America, Europe during the second quarter, so an equivalent amount but we're getting to the level where it's a little bit difficult to distinguish the exact amount, to be honest with you Matt in terms of the impact, but it's not a huge number, and we would expect it to unwind by the end of the year. My sense is it's -- the volatility of our customer order patterns in terms of what they're seeing from demand is causing them to build a tiny bit of inventory and also just generally making sure that they have stock available as they build vehicles for the market. So it's not a big number relative to the overall business, but it's something that we thought worthy of calling out.

是的。謝謝，馬特。這不是一個大數字。我們曾討論過第一季的庫存建設約為 2500 萬美元。具體來說，由於與中國客戶相關，我們認為第二季度從中國遷移到北美、歐洲，因此數量相當，但我們已經達到了很難區分確切數量的水平，老實說，馬特，就影響而言，但這並不是一個巨大的數字，我們預計它將在今年年底前緩解。我的感覺是——我們的客戶訂單模式的波動性（從他們所看到的需求來看）導致他們建立了少量的庫存，並且通常只是確保他們在為汽車製造車輛時有可用的庫存。 。因此，相對於整體業務而言，這並不是一個大數字，但我們認為值得一提。

Okay. And then just a question regarding the guidance for margins, backing into gross margin based on your operating profit and SG&A guide. It looks really like a very significant quarter-to-quarter contribution margin. And I know there's some cost cutting. I think you talked about $7 million in savings from the cost-cutting initiatives. But what are the other drivers of that?

好的。然後是一個關於利潤率指導的問題，根據您的營業利潤和銷售管理費用指南返回毛利率。看起來確實是一個非常顯著的季度利潤率貢獻。我知道有一些成本削減。我想您談到了透過成本削減措施節​​省了 700 萬美元。但其他驅動因素是什麼？

And as we look to December based on expectations of sequential growth, should we expect a similar margin contribution or not?

當我們根據環比成長的預期展望 12 月時，我們是否應該預期類似的利潤率貢獻？

Paul, would you like to take that? Please.

保羅，你願意接受嗎？請。

Sure. So in the remarks, revenue certainly is going to drive a lot of the margin expansion. So as revenues coming down, we were seeing a significant level of decremental margins because we were not able to adjust our semi-variable and fixed cost to that volume decline quickly. But we did have significant savings in Q2 around furlough and pay cuts of $22 million. So as you go forward into Q3, as the revenues rise, you see a similar improvement in incremental margins in the high 40% range. We're going to see the $7 million come through from those cost actions that we're taking that are permanent. But we're not going to see the temporary cost saves because we're not putting those pay cuts and furloughs in place for Q3. So that's the $15 million headwind. $7 million of savings coming on and the $22 million of the temporary cost reduction is not continuing. And then the volume ramping up is really what's driving the significant improvement in operating profit and contribution from that higher revenue.

當然。因此，在評論中，收入肯定會推動利潤率的大幅成長。因此，隨著收入下降，我們看到利潤率大幅下降，因為我們無法根據銷售量的快速下降調整半變動和固定成本。但我們在第二季確實在休假和減薪方面節省了 2,200 萬美元。因此，當進入第三季時，隨著收入的成長，您會看到增量利潤率也有類似的改善，達到 40% 的高水準。我們將看到我們正在採取的永久性成本行動將帶來 700 萬美元的收益。但我們不會看到臨時成本節省，因為我們不會在第三季實施減薪和休假。這就是 1500 萬美元的逆風。即將節省 700 萬美元，而 2,200 萬美元的臨時成本削減不會繼續。然後，銷量的增加確實推動了營業利潤和更高收入的貢獻的顯著改善。

The next question is from the line of Wamsi Mohan with Bank of America.

下一個問題來自美國銀行的瓦姆西·莫漢 (Wamsi Mohan)。

I have one for Jeff and one for Paul. Jeff, your expectations for market upgrowth, you've alluded to those getting a little more subdued in the second half given some product launch push-outs. I was hoping you can share some more color on that? I mean, you are expecting sequential volume improvement. So is it the case that you're anticipating some large program roll offs? Or what are the puts and takes here that's driving that in the second half? And I have a follow-up for Paul.

我有一份給傑夫，一份給保羅。傑夫，您對市場成長的預期，您提到了由於一些產品推出的推出，下半年市場成長會更加低迷。我希望你能分享一些更多的色彩？我的意思是，您期望銷量會持續改善。那麼您是否預計會推出一些大型計劃？還是什麼推動了下半場的走勢？我還有保羅的後續行動。

Yes. Great. Wamsi, thanks for the question. So just to make sure that the message you got across, we're still confident that for the full year and beyond, we'll be within the ranges that we've quoted. We had a very strong first half year in terms of content growth or outgrowth. For the first half, we were at 750 basis points year-to-date in automotive and heavy vehicle we were at 840 basis points through 6 months. So that's above where the normal range was and confidence continues to be there. In terms of what we're seeing, that will impact the second half, it's largely time phasing, in terms of the NS VI regulation, the deadline was July. So there was some pull ahead associated with that. And then there's another impact associated with just time out at our customers in terms of the COVID period. So some of the launch activity that would normally have occurred, that was a little disrupted associated with time out-of-office during this very difficult time, has resulted in some temporary delays in terms of launches that were going to happen in the third and fourth quarter of this year. They are temporary. Nothing is canceling to any meaningful amount. Obviously, there are always some small amounts of movement associated with cancellations as customers refine this, but we're not seeing any major impact associated with cancellation. There are delays in the order of magnitude of, call it, 3 months to 6 months, and they're pushed through the following quarters. So we'll see that coming in later, first part of 2021.

是的。偉大的。萬西，謝謝你的提問。因此，為了確保您傳達的訊息，我們仍然有信心在全年及以後的時間裡，我們將處於我們引用的範圍內。就內容成長或產出而言，我們上半年表現非常強勁。上半年，汽車和重型車輛今年迄今為 750 個基點，6 個月內為 840 個基點。因此，這高於正常範圍，並且信心仍然存在。就我們所看到的而言，這將影響下半年，這很大程度上是時間階段性的，就 NS VI 法規而言，截止日期是 7 月。因此，有一些與此相關的提前。此外，在新冠肺炎疫情期間，我們的客戶暫停服務還會產生另一個影響。因此，一些通常會發生的發射活動，由於在這個非常困難的時期不在辦公室而受到了一些幹擾，導致了原定於第三個和第三個季度進行的發射出現了一些暫時的延遲。第四季。它們是暫時的。沒有任何東西可以抵消任何有意義的量。顯然，隨著客戶的改進，總是會有一些與取消相關的少量變動，但我們沒有看到與取消相關的任何重大影響。延遲的數量級是 3 個月到 6 個月，並且會被推遲到接下來的幾季。因此，我們將在 2021 年上半年看到這一點。

Okay. And Paul, you called out $60 million to $65 million in savings in 2021. Can you clarify if these are gross or net savings? And will they be pretty consistent across the quarters? And should we think of these savings as proportional to your revenue exposure by market? Or are they more concentrated in auto and aerospace?

好的。保羅，您呼籲 2021 年節省 6000 萬至 6500 萬美元。您能否澄清這些是總節省還是淨節省？各季度的表現會非常一致嗎？我們是否應該將這些節省視為與您的市場收入成正比？還是他們更集中在汽車和航空航太領域？

No, there -- I would say they're spread evenly across the company in terms of the business that are being impacted by the cost reduction programs. The $60 million, $65 million, it's mostly people. It's mostly related to the workforce reduction. There are other cost actions that we have in place around third-party spend and productivity improvements that are going to drive the $60 million to $65 million. A lot of it will be implemented this year in the second half. So when we get into the first quarter, we should be at that run rate per quarter. So we should get the full $60 million, $65 million in the year, and with it being at that full run rate, pretty much by the end of the first quarter. So that's -- and that aligns to the demand that we're expecting over the coming quarters.

不，我想說的是，就受到成本削減計劃影響的業務而言，它們均勻地分佈在整個公司。6000萬美元、6500萬美元主要是人。這主要與勞動力減少有關。我們也圍繞第三方支出和生產力改進採取了其他成本行動，這將推動 6,000 萬至 6,500 萬美元的成本成長。其中許多將在今年下半年實施。因此，當我們進入第一季時，我們應該保持每個季度的運行速度。因此，我們應該在今年獲得全額的 6000 萬美元、6500 萬美元，並且按照全額運行率，幾乎到第一季末就可以了。這與我們預計未來幾季的需求是一致的。

The next question is from the line of Brian Johnson with Barclays.

下一個問題來自巴克萊銀行的布萊恩·約翰遜。

Yes. Just want to follow-up on decrementals then talk a bit about the ADAS opportunity. So when we think about the decrementals for 3Q on a year-over-year basis, I think I got the answer, which is the roll-off sequentially of the temporary cost reduction is what's going to take your decrementals back to the higher end of the range, is that correct?

是的。只是想跟進減量，然後談談 ADAS 機會。因此，當我們考慮第三季度同比的減量時，我想我得到了答案，即臨時成本削減的連續滾動將使您的減量回到去年的較高端。

Well, the way I would think about it is that we laid this out that right now our profit on impact from volume is moving in line with our variable cost and our variable contribution. You can see in that pie chart, about half of our cost is variable. So when we lose $1 or gain a $1, it's about a 45% to 50% impact. Now we weren't able to get at the semi-variable cost in Q2, so we took temporary actions around furloughs and pay cuts. Now in Q3 and going to Q4, we're getting at those semi-variable costs. And that's where the $60 million, $65 million highlight in the chart, about 10%. The semi-variable costs running the $600 million range. So we're taking about 10% of those costs out. Now that's what's driving improvement in cost. And so we're getting a combination of volumes are going higher, we're getting a variable contribution. And now we're getting at that sticky semi-variable costs that we weren't able to action in the first half of 2020. Does that makes sense?

好吧，我的思考方式是，我們指出，目前我們的利潤對銷售的影響正在與我們的可變成本和可變貢獻保持一致。您可以在該餅圖中看到，大約一半的成本是可變的。因此，當我們損失 1 美元或獲得 1 美元時，影響約為 45% 到 50%。現在我們無法獲得第二季的半變動成本，因此我們針對休假和減薪採取了臨時行動。現在在第三季和第四季，我們正在研究這些半變動成本。這就是圖表中突出顯示的 6000 萬美元、6500 萬美元，約佔 10%。半變動成本運作在 6 億美元範圍內。因此，我們將削減大約 10% 的成本。這就是推動成本改善的原因。因此，我們得到的成交量組合正在上升，我們得到了可變的貢獻。現在，我們面臨著 2020 年上半年我們無法採取行動的黏性半變動成本。這樣有道理嗎？

Yes. Yes. My second question is really around your new acquisition and the role of ADAS in commercial vehicles. We've been aware, of course, of WABCO and others with vision-based systems, and that this is -- seems a little bit different. But it gets to my question, which is, when you think of an ADAS solution, in addition to the sensors, whether it's camera, radar, ultrasonic, there's, of course, a fair amount of algorithms around object identification, detection, left laning. Are you moving into that space? Or will you be working with Tier 1s who are already acting as CV ADAS integrators?

是的。是的。我的第二個問題實際上是關於您的新收購以及 ADAS 在商用車中的作用。當然，我們已經意識到 WABCO 和其他公司擁有基於視覺的系統，而這似乎有點不同。但這觸及了我的問題，那就是，當你想到 ADAS 解決方案時，除了感測器之外，無論是攝影機、雷達、超音波，當然還有大量圍繞物體識別、偵測、左車道的演算法。你要搬進那個空間嗎？或者您會與已經擔任 CV ADAS 整合商的一級供應商合作嗎？

Yes. So we're not -- a great question. We're not going fully off the stack on this, but it is a more complicated system than you would normally see in a pressure sensor or a high-temperature sensor for an application. So we're providing more information to deal with it, and we're working both with OEMs and their choice on how they want to develop those overall system architectures. Some OEMs choose to leverage a Tier 1 in the development of that. Others want to hold it more closely to what their application is there. So it does depend on where we -- the ultimate customer approach on how they're doing it. But we're part of that overall system, both with Tiers and OEMs.

是的。所以我們不是——一個很好的問題。我們不會完全脫離這一點，但它是一個比您通常在應用中看到的壓力感測器或高溫感測器更複雜的系統。因此，我們正在提供更多資訊來處理這個問題，並且我們正在與 OEM 合作，並與他們合作，了解他們希望如何開發這些整體系統架構。一些 OEM 選擇在開發過程中利用一級。其他人則希望它更貼近他們的應用程式。因此，這確實取決於我們的最終客戶方法以及他們的做法。但我們是整個系統的一部分，包括層級和 OEM。

And a follow-on on LIDAR coming down. Is that a market that you have relationships with? Do you see that coming into their commercial vehicle? Certainly, we've seen the Luminar trucks at CS? or would you want to play a role either there in light vehicle?

光達的後續產品也即將推出。這是一個與您有關係的市場嗎？您認為他們的商用車會採用這種技術嗎？當然，我們在 CS 上見過 Luminar 卡車嗎？或者您想在輕型汽車領域發揮作用嗎？

Yes. So this is a radar solution. PRECO does not have a LIDAR capability. You know that we have a partnership with Quanergy on solid-state LIDAR. That is not at the stage where it's available to bring to market. So right now, it's largely the radar solutions that we're working on with PRECO to bring to market in this space that we're referring to.

是的。所以這是一個雷達解決方案。PRECO 不具備雷射雷達功能。您知道，我們與 Quanergy 在固態雷射雷達方面建立了合作夥伴關係。目前還沒有達到可以推向市場的階段。所以現在，我們正在與 PRECO 合作，將雷達解決方案推向我們所指的這個領域的市場。

Okay. And is your relationship with Quanergy exclusive? Or if you see better or different solutions can you take advantage of those?

好的。您與 Quanergy 的關係是否具有排他性？或者，如果您看到更好或不同的解決方案，您可以利用它們嗎？

Yes. It's not exclusive. But again, right now, given that we've made the investment in PRECO and that there are opportunities that are growing very rapidly associated, which is the radar dimension, that's our focus area. We continue to look at other object detection technologies to enable us to continue to build on this platform but what we're announcing today is the small acquisition, but an important acquisition of PRECO associated with radar capability.

是的。這不是唯一的。但現在，鑑於我們已經對 PRECO 進行了投資，而相關的機會正在快速成長，這就是雷達維度，這是我們的重點領域。我們將繼續研究其他物體偵測技術，以使我們能夠繼續在這個平台上進行開發，但我們今天宣布的雖然是小型收購，但卻是與雷達功能相關的 PRECO 的一次重要收購。

The next question is from the line of Joseph Spak with RBC Capital Markets.

下一個問題來自加拿大皇家銀行資本市場的 Joseph Spak。

Just wanted to go back to the outgrowth. And you talked about that taking a step back in the back half even with the impressive 890 bps in the second quarter in automotive, but you compare that in the quarter versus the overall automotive industry. And when you look at your exposure, you're actually overweight versus the industry in North America and Europe versus (technical difficulty) a weighted basis, it actually suggests you did even better than that. So as we go forward and North America and Europe come back, why wouldn't the outgrowth continue and remain strong and sort of the geographic weighting work in your favor?

只是想回到原來的生長狀態。您談到，儘管汽車行業第二季度的增長率達到了令人印象深刻的 890 個基點，但您在後半段後退了一步，但您將本季度的增長率與整個汽車行業進行了比較。當你查看你的風險敞口時，你實際上相對於北美和歐洲的行業相對於（技術難度）加權基礎而言是超重的，這實際上表明你做得比這更好。因此，當我們繼續前進，北美和歐洲捲土重來時，為什麼成長不會繼續下去並保持強勁，地理權重不會對你有利呢？

Yes. So you're right. There is -- outgrowth is not equal across all markets. We do tend to see both from new business opportunity standpoint and ultimately, in the form of content growth or outgrowth, which new business turns into outgrowth several years later that there is more concentration in China than there is in other markets. And hey, you look at the content per vehicle, China is half of what it is around the rest of the world. So that fact is absolutely true. But all OEMs have had challenges associated with product launches. And so that aspect of that associated with the disruption that has occurred is not specific to North America and China. It's a global challenge that has been -- we're all dealing with. So that's the reason for the change going into the second half.

是的。所以你是對的。並非所有市場的成長都是平等的。我們確實傾向於從新商機的角度以及最終以內容成長或副產品的形式（幾年後新業務變成副產品）​​的角度來看，中國比其他市場更加集中。嘿，你看看每輛車的內容，中國是世界其他地區的一半。所以這個事實絕對是正確的。但所有原始設備製造商都面臨與產品發布相關的挑戰。因此，與所發生的破壞相關的方面並不是北美和中國特有的。這是我們都在應對的全球挑戰。這就是下半年發生變化的原因。

Okay. And then just on the inventory. I know you said it's small, and we agree. But I just want to be clear, like when you talk about it unwinding by year-end, is that to your below IHS view of the industry? Meaning if I chose this correct, there's a little bit of extra conservatism in there?

好的。然後就在庫存上。我知道你說它很小，我們同意。但我只是想澄清一下，就像當你談到年底前放鬆時，這是否符合你對 IHS 行業的看法？這意味著，如果我選擇正確，那麼其中就會有一點額外的保守主義？

Well, I'm not sure, honestly, if some of the difference between us and IHS relates to inventory unwinding to these. To be true, that might be a factor of it. So again, if you're talking $25 million, maybe it's $10 million, $12 million of the $60 million difference that we would have in the third quarter. So there may be some of that that's not factored in as well. That's an accurate statement.

好吧，老實說，我不確定我們和 IHS 之間的某些差異是否與庫存平倉有關。說實話，這可能是其中的一個因素。再說一次，如果你說的是 2,500 萬美元，那麼第三季我們將有 6,000 萬美元的差異，也許是 1,000 萬美元、1,200 萬美元。因此，可能還有一些因素沒有被考慮。這是一個準確的說法。

The next question is from the line of Craig Hettenbach with Morgan Stanley.

下一個問題來自摩根士丹利的 Craig Hettenbach。

A question for Jeff. Just thinking through the cost savings actions, the $60 million to $65 million. Obviously, this has been a very unique cycle to say the least. But just how do you think through kind of this environment? And as you looked at the business, some changes that you can make just kind of more on a structural basis to improve margins?

有個問題想問傑夫。只要考慮一下成本節約行動，就可以節省 6,000 萬至 6,500 萬美元。顯然，至少可以說這是一個非常獨特的週期。但你如何看待這種環境呢？當您審視業務時，是否可以在結構性基礎上進行一些改變以提高利潤率？

Yes. Thanks for the question, Craig. So let me first start by saying this was -- taking these actions was an incredibly difficult thing to do. We're talking about our people who are driving the business. And so I don't want to minimize it. It's necessary. We need to take action to respond to the unprecedented market changes. But I want to sort of formally thank the people who are impacted by this for their contributions over the years. These are very, very tough decisions. Having said that, we take lemons and turn them into lemonades in terms of what we do going forward. And so as we think about where we're going, as we hire back, as the growth resumes in the business and markets recover, we'll hire in different locations, we'll hire skill sets that are about the future for the company. We do a lot of work to train and tool people that work with the company for that as well. But clearly, we'll take the opportunity with this market disruption to plan for the future in terms of where we're going as a business. We do that across people, we do that across where we need to manufacture as well, where our engineering needs to be to make sure it's closer to where our customers are. So there is no question that when we get faced with these very difficult times, that we accelerate things that we've considered that we are now able to do in an environment that's very challenging in terms of the markets that we serve. So your point is valid. We have done that as part of this program.

是的。謝謝你的提問，克雷格。首先我要說的是──採取這些行動是一件極為困難的事。我們談論的是推動業務發展的員工。所以我不想最小化它。有必要。我們需要採取行動來應對前所未有的市場變化。但我想正式感謝受此影響的人們多年來的貢獻。這些都是非常非常困難的決定。話雖如此，我們將檸檬變成檸檬水，作為我們未來的工作。因此，當我們思考我們要去哪裡時，當我們重新招聘時，隨著業務的恢復成長和市場的復甦，我們將在不同的地點進行招聘，我們將招聘與公司未來相關的技能組合。我們也做了很多工作來培訓和為公司工作的人員提供工具。但顯然，我們將利用這次市場混亂的機會來規劃未來的業務發展方向。我們在人員之間這樣做，我們也在需要製造的地方這樣做，在我們的工程需要的地方這樣做，以確保它更接近我們的客戶所在的地方。因此，毫無疑問，當我們面臨這些非常困難的時期時，我們會加快我們認為現在能夠在我們所服務的市場非常具有挑戰性的環境中完成的事情。所以你的觀點是有效的。作為該計劃的一部分，我們已經做到了這一點。

Got it. I appreciate that context. And then just as a follow-up for automotive production, just thinking for the full year. I know it sounds like you guys are a little bit more positive on China and just maybe cautious on North America and Europe relative to IHS. But on a blended basis, I think IHS is down around 23% for the year. Are you close to that blended? Or how do you think about that for globally?

知道了。我很欣賞這種背景。然後作為汽車生產的後續行動，只考慮全年。我知道，相對於 IHS，你們對中國的態度似乎更積極一些，而對北美和歐洲的態度可能更為謹慎。但綜合來看，我認為 IHS 今年下跌了 23% 左右。你接近那種混合嗎？或者您如何看待全球範圍內的這個問題？

Yes. So we're not providing full year guidance at this point. But that range is consistent with what we're looking at. And our view is, let's get through the view of the third quarter. And as the order book develops, as we get a best feel for the markets in the fourth quarter, and as we have continued conversations with our customers, we'll forecast out into the fourth quarter and therefore, what the full year impact is.

是的。因此，我們目前不提供全年指導。但這個範圍與我們所看到的一致。我們的觀點是，讓我們回顧一下第三季的情況。隨著訂單的發展，隨著我們對第四季度的市場有了最好的了解，隨著我們與客戶的持續對話，我們將預測第四季度的情況，從而預測全年的影響。

But as we had mentioned, we do expect a sequential improvement from Q2 to Q3 into Q4. So what the numbers you're talking are directionally accurate, but refining them will come with time as we get a better view as to what we're seeing.

但正如我們所提到的，我們確實預計從第二季到第三季到第四季會出現連續改善。因此，您所說的數字在方向上是準確的，但隨著時間的推移，隨著我們對所看到的情況有更好的了解，它們將會得到完善。

The next question is from the line of Tim Yang with Citi.

下一個問題來自花旗集團的 Tim Yang。

On pricing, you mentioned better pricing in Q2 in automotive market. Can you talk about what's driving the pricing? And how sustainable it is?

關於定價，您提到了汽車市場第二季更好的定價。能談談推動定價的因素嗎？它的可持續性如何？

Yes. So what we mentioned is that a portion of the outgrowth is due to better pricing. Most of our contracts with our customers provide for volumes associated with the market. Obviously, when our customers engage with us and we contract with them, there's an expectation around what that volume will look like. And when you have major disruption like this, the volume is lower. And so the recovery of that impact could be either in the form of better pricing or it could be in the form of new awards on new business.

是的。所以我們提到的是，成長的一部分是由於更好的定價。我們與客戶的大多數合約都規定了與市場相關的數量。顯然，當我們的客戶與我們互動並且我們與他們簽訂合約時，人們會對銷售有一個預期。當發生像這樣的重大中斷時，數量就會減少。因此，這種影響的恢復可能以更好的定價的形式出現，也可能以對新業務的新獎勵的形式出現。

When we're given that choice, we always take new business, long-term growth for the company, but there are some instances where we've seen some better pricing across our end markets, not just in automotive, when you have significant dips in volume in terms of what we're expecting in a quarter or in a year.

當我們有這樣的選擇時，我們總是會選擇新業務，為公司帶來長期成長，但在某些情況下，當價格大幅下跌時，我們會在終端市場（而不僅僅是汽車市場）看到更好的定價就我們對一個季度或一年的預期而言，是在數量上。

Got it. My next question is on the outgrowth that you mentioned would decelerate a little bit in the second half. Can you talk about how much of that moderation is due to customer inventory destocking? And how much of that is due to the content mix?

知道了。我的下一個問題是關於你提到的下半年經濟成長會放緩。您能否談談這種放緩有多少是由於客戶庫存去庫存造成的？其中有多少是因為內容組合造成的？

Yes. So it's a combination of those. It's another good point. The -- is it -- we put the inventory stocking in there as well. That was in there in the first half of the year, the $25 million, we talked about that being part of the automotive outgrowth in the first quarter. So if that unwinds, which we are forecasting that it will, that will come out of content.

是的。所以它是這些的組合。這是另一個優點。我們也把庫存放在那裡。這是今年上半年的 2500 萬美元，我們談到這是第一季汽車成長的一部分。因此，如果這種情況得到緩解（我們預測它會出現這種情況），那麼這將來自內容。

Tough to judge exactly how much is due to that versus program launch, temporary deferrals or program launch. But certainly, the $25 million unwinding would be an element of that content decline going into the balance of the year, but that's quantifiable. We know that's $25 million of the overall impact.

很難準確判斷到底有多少是因為計畫啟動、暫時延後或計畫啟動所造成的。但可以肯定的是，2500 萬美元的撤資將成為今年剩餘時間內容下降的因素，但這是可以量化的。我們知道這佔總影響的 2500 萬美元。

Ladies and gentlemen, we have reached the time allotted for this call. I would like to turn the conference back over to Mr. Jacob Sayer for any closing remarks. Thank you.

女士們、先生們，我們已經到達了本次通話的指定時間。我想將會議轉回給雅各布·塞耶先生發表閉幕詞。謝謝。

Thank you, Constantinos. I'd like to thank everyone for joining us this morning. Sensata will be participating in the upcoming Jefferies Industrial Investor Conference on August 5, the Citigroup Technology Investor Conference on September 9, and the RBC Industrial Investor Conference on September 14. Thank you for joining us this morning and for your interest in Sensata. Constantinos, you may now end the call.

謝謝你，康斯坦丁。我要感謝大家今天早上加入我們。森薩塔將參加即將於 8 月 5 日舉行的 Jefferies 工業投資者會議、9 月 9 日舉行的花旗集團科技投資者會議以及 9 月 14 日舉行的 RBC 工業投資者會議。感謝您今天早上加入我們以及您對森薩塔的興趣。康斯坦丁諾斯，你現在可以結束通話了。

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。