Sensata Technologies Holding PLC (ST) 2020 Q1 法說會逐字稿

Good day and welcome to the Sensata Technologies Q1 2020 Earnings Call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Mr. Jacob Sayer, Vice President of Finance. Please go ahead.

美好的一天，歡迎參加森薩塔科技 2020 年第一季財報電話會議。 （操作員說明）請注意，正在記錄此事件。現在我想將會議交給財務副會長 Jacob Sayer 先生。請繼續。

Thank you, Keith, and good morning, everyone. I would like to welcome you to Sensata's First 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. We are also joined by Paul Chawla, EVP of our Automotive business; and Vineet Nargolwala, EVP of our Industrial, HVOR and Aerospace businesses, who will be available to provide additional market-specific insight during Q&A. In addition to the earnings 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. We'll post a replay of today's webcast shortly after the conclusion of today's call.

謝謝基思，大家早安。歡迎您參加森薩塔 2020 年第一季財報電話會議。參加今天電話會議的還有森薩塔 (Sensata) 執行長兼總裁傑夫·科特 (Jeff Cote)；和保羅·瓦辛頓 (Paul Vasington)，森薩塔 (Sensata) 首席財務官。汽車業務執行副總裁 Paul Chawla 也加入了我們的行列；我們的工業、HVOR 和航空航天業務執行副總裁 Vineet Nargolwala 將在問答期間提供更多針對特定市場的見解。除了我們今天早些時候發布的收益報告外，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。

Before we begin, I would like to reference Sensata's safe harbor statement on Slide 2. During the course of 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. 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.

在開始之前，我想參考投影片 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在 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 financial results for the first 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 be related to non-GAAP financial measures. Reconciliations of our GAAP to non-GAAP financial measures are included in our earnings release and in our webcast presentation. The company provides details of its segment operating income on Slides 11 and 12 of the presentation, which are the primary measures management uses to evaluate the business.

在幻燈片 3 中，我們展示了森薩塔 2020 年第一季的 GAAP 財務業績。我們將在今天的電話會議中討論的大部分後續資訊將與非公認會計準則財務指標有關。我們的 GAAP 與非 GAAP 財務指標的調整包含在我們的收益發布和網路廣播簡報中。該公司在簡報的幻燈片 11 和 12 上提供了其部門營業收入的詳細信息，這是管理層用於評估業務的主要指標。

Jeff will begin today's call with a review of our overall business in the first [quarter], particularly impact from COVID-19 and our responses as well as the strong financial position of the company. He'll also discuss Sensata's revenue outgrowth relative to underlying markets during Q1 and provide an update on recent progress in some of our key megatrend growth areas. Paul will then cover our detailed financials for the first quarter of 2020, provide insight into our financial model and describe leading economic indicators that we use to estimate the future performance of our businesses. We will then take your questions after our prepared remarks.

Jeff 將在今天的電話會議開始時回顧我們第一季的整體業務，特別是 COVID-19 的影響、我們的應對措施以及公司強勁的財務狀況。他還將討論第一季森薩塔相對於基礎市場的收入成長，並提供我們一些關鍵大趨勢成長領域的最新進展。然後，保羅將介紹我們 2020 年第一季的詳細財務數據，深入了解我們的財務模型，並描述我們用來估計業務未來業績的領先經濟指標。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. As we shared with you earlier this month, you can see on Slide 4 that we recognized the global impact of COVID-19 early and took a wide range of steps across our organization designed to, first and foremost, to ensure the safety and health of our employees, while also enabling us to serve critical customer needs and enhance our financial flexibility. These actions position Sensata to emerge from this worldwide disruption even stronger so we can better serve our customers, employees, shareholders as well as our communities. Working with local, state and federal government health agencies in many countries, we moved quickly to implement measures to help protect employees and minimize the spread of COVID-19. At a high level, these actions included sanitizing our facilities, instituting safe distancing for our essential workforce, staggering work times, implementing health checks at our facilities, providing paid leave for affected employees and mandating remote work as much as possible. While it's been a a challenge for all of us to learn how to work remotely from our colleagues, we recognize the importance of doing so, especially given that some of our employees are not able to work from home. I'm pleased to report that our teams are stepping up and adapting to the new normal. As I speak today, after brief closures in certain locations, our manufacturing facilities are open, and we have sustained production adjusted for demand levels. Governments have issued shelter-in-place orders and closed nonessential businesses. By working with authorities in jurisdictions where we operate, most of our manufacturing facilities have been deemed essential. We manufacture critical products for industries such as essential transportation, defense and medical equipment. So it is important that we keep operating during this crisis. We are in a strong financial position, and we have taken steps to enhance our financial flexibility. We have lowered our operating expenses for the second quarter through management salary reductions and employee furloughs, implemented reductions in discretionary spending and are ramping down production in certain facilities in line with expected end market demand. For the second quarter, I am taking a salary of $1, and we have reduced the cash portion of our nonemployee directors compensation by 50%. All members of senior management are taking a 25% reduction in pay, and we are seeking a similar reduction in pay through furloughs from all indirect employees. We are reducing capital expenditures and managing our working capital very carefully. We drew down on our revolving credit facility to enhance our cash position, more than $1.2 billion in total at the beginning of the second quarter. And we have temporarily suspended our share buyback program. We also withdrew our financial guidance for fiscal year 2020 in early April as our visibility into the economic impact of this crisis became less clear. Paul will discuss leading indicators we are tracking to estimate future revenue shortly. Throughout these unprecedented times, we've proven ourselves to be a strong and reliable partner to our customers as they, too, face uncertainty and disruption. We are continuing to make progress on our key initiatives around Smart & Connected and Electrification, which I will discuss in more detail momentarily. We have proven ourselves as good stewards of capital, rightsizing our organization to the environment, yet still investing in areas that offer significant long-term growth opportunities. We have demonstrated the integrity of our global supply chain and flexible cost structure under the most difficult times. All of this gives us confidence in our strategic direction and our ability to continue to execute.

謝謝你，雅各。正如我們本月早些時候與您分享的那樣，您可以在幻燈片4 中看到，我們很早就認識到了COVID-19 的全球影響，並在整個組織內採取了廣泛的措施，旨在確保所有人的安全和健康。這些行動使森薩塔能夠從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、股東以及我們的社區。我們與許多國家的地方、州和聯邦政府衛生機構合作，迅速採取措施，幫助保護員工並最大程度地減少 COVID-19 的傳播。從高層來看，這些行動包括對我們的設施進行消毒、為我們的重要員工建立安全距離、錯開工作時間、在我們的設施中實施健康檢查、為受影響的員工提供帶薪休假以及盡可能要求遠距工作。雖然學習如何與同事遠距工作對我們所有人來說都是一個挑戰，但我們認識到這樣做的重要性，特別是考慮到我們的一些員工無法在家工作。我很高興地報告，我們的團隊正在加緊努力，適應新常態。正如我今天所說，在某些地點短暫關閉後，我們的生產設施已重新開放，並且我們根據需求水準進行了持續的生產調整。各國政府已發布就地避難令並關閉了非必要企業。透過與我們經營所在司法管轄區的當局合作，我們的大多數製造設施被認為是必不可少的。我們為重要運輸、國防和醫療設備等產業製造關鍵產品。因此，在這場危機期間我們繼續運作非常重要。我們的財務狀況良好，並且已採取措施增強財務靈活性。我們透過管理層減薪和員工休假來降低第二季度的營運費用，減少可自由支配支出，並根據預期的終端市場需求減少某些工廠的產量。第二季度，我的薪水為 1 美元，我們將非員工董事薪資的現金部分減少了 50%。所有高階主管的薪資將減少 25%，我們正在透過讓所有間接員工休假來尋求類似的減薪。我們正在減少資本支出並非常謹慎地管理我們的營運資金。我們動用了循環信貸額度來增強我們的現金狀況，截至第二季初，現金狀況總計超過 12 億美元。我們也暫時停止了股票回購計畫。由於我們對這場危機的經濟影響的了解變得不太清楚，我們也在 4 月初撤回了 2020 財年的財務指引。保羅將討論我們正在追蹤的領先指標，以估計未來的收入。在這些前所未有的時期，我們已經證明自己是客戶強大而可靠的合作夥伴，因為他們也面臨不確定性和乾擾。我們正在繼續圍繞智慧互聯和電氣化的關鍵舉措取得進展，我將立即更詳細地討論這些舉措。我們已經證明自己是優秀的資本管理者，根據環境調整我們的組織規模，但仍投資於提供重大長期成長機會的領域。在最困難的時期，我們展示了全球供應鏈的完整性和靈活的成本結構。所有這些都讓我們對我們的策略方向和繼續執行的能力充滿信心。

The continued focus on our strategic direction remains central, and we are aggressively managing our operations during this unprecedented market environment. As shown on Slide 5, the rapidly escalating worldwide impact of COVID-19 has adversely affected the global economy, our entire industry, especially our employees, suppliers, partners, customers and the communities in which we operate around the world. I'm so proud of how our entire organization has responded to this crisis, locally and globally in extraordinary ways. The health and well-being of our employee base is our first concern, and we're doing everything we can to protect them from the spread of the virus.

繼續關注我們的策略方向仍然是核心，我們在這個前所未有的市場環境中積極管理我們的營運。如幻燈片5 所示，COVID-19 在全球範圍內的影響迅速升級，對全球經濟、我們的整個行業，特別是我們的員工、供應商、合作夥伴、客戶以及我們在世界各地開展業務的社區產生了不利影響。我對我們整個組織在本地和全球範圍內以非凡的方式應對這場危機感到非常自豪。員工的健康和福祉是我們的首要關注，我們正在盡一切努力保護他們免受病毒傳播。

Some examples of the extraordinary times in which we currently operate include: China reported a GDP decline of 6.8% year-over-year in the first quarter as the government shut businesses. This is the first decline in Chinese GDP since quarterly record-keeping began in 1992. Global light vehicle production in the first quarter dropped 20% year-over-year. And within our industrial markets, we also experienced a 15% decline in global market volumes in the first quarter, driven primarily out of China. Given that the response to the spread of COVID-19 came later in the first quarter for Europe and the U.S., we expect this slowdown to accelerate in the second quarter. According to the latest automotive production data released by IHS, global production for the second quarter is forecasted to decline 47% year-over-year, with Europe expected to decline 61%, China expected to decline 9% and North America is expected to decline 70%. Also according to IHS, for the full year 2020, global automotive production is now expected to decline 22%. In addition, a substantial decline in global GDP is predicted for Q2, which will impact our other end markets.

我們目前所處的非常時期的一些例子包括： 由於政府關閉企業，中國第一季 GDP 年減 6.8%。這是自1992年開始有季度記錄以來中國GDP首次下降。在我們的工業市場中，第一季全球市場銷售也下降了 15%，主要是由中國推動的。鑑於歐洲和美國在第一季晚些時候才對 COVID-19 的傳播做出反應，我們預計這種放緩將在第二季度加速。 IHS最新發布的汽車產量數據顯示，第二季全球產量預計將年減47%，其中歐洲預計將下降61%，中國預計下降9%，北美預計將下降70%。另據 IHS 預測，2020 年全年全球汽車產量預計將下降 22%。此外，預計第二季全球GDP將大幅下降，這將影響我們的其他終端市場。

Despite these challenges, Sensata has demonstrated progress in the first quarter on our strategic goals for the year. We delivered significant end market outgrowth despite substantial market declines. We are continuing to win new business and invest in opportunities that, once we're through this period of disruption, will drive long-term growth for the company.

儘管面臨這些挑戰，森薩塔在第一季在我們今年的戰略目標方面取得了進展。儘管市場大幅下滑，我們仍實現了終端市場的顯著成長。我們正在繼續贏得新業務並投資機會，一旦我們度過了這段混亂時期，這些機會將推動公司的長期成長。

Now let me discuss our performance by end market for the first quarter of 2020. Overall, volumes were substantially lower, and we reported revenues of $774.3 million, which represented an organic revenue decline of 10.4%.

現在讓我討論一下我們 2020 年第一季終端市場的表現。

Slide 6 shows organic revenue performance by end market for the first quarter. I will begin with our heavy vehicle off-road business. HVOR posted an organic revenue decline of 10.7%, outperforming a 20% end market decline. Our China on-road truck business continued to post better-than-expected growth, as a result of strong content performance, driven by the adoption of NS VI emissions regulations. Industrial, aerospace and other revenue declined 10.4% organically for the first quarter of 2020. Our aerospace business declined 2% organically with continued content growth offsetting the grounding of flights, reduced production and a roughly 6% market decline. Our industrial businesses declined 12.3% organically, driven by declines in China of more than 33% from extended pandemic-related shutdowns and a global industrial market slowdown of approximately 15%. Our automotive business posted an organic decline of 10.4% in the quarter. This was primarily driven by an end market decline of 20%. The China automotive market declined 49% in the first quarter. However, Sensata's strong content growth helped to offset a significant portion of this decline. As facilities begin to reopen and production ramps up in this region, we expect to see substantial recovery. In our North American and European automotive businesses, we saw meaningful revenue declines linked to our customers' closing plants for the last 2 weeks of the quarter. Globally, we still posted 600 basis points of market outgrowth. In addition, we saw OEMs, primarily in China, build inventory during the quarter, in part, to ensure that they have supply when reopening their plants and ramping production. We estimate that to be approximately 310 basis points of growth coming from this inventory build, and we would expect this to unwind in the coming quarters.

幻燈片 6 顯示了第一季終端市場的有機收入表現。我將從我們的重型車輛越野業務開始。 HVOR 的有機收入下降了 10.7%，優於終端市場 20% 的下降。由於內容表現強勁，以及 NS VI 排放法規的採用，我們的中國公路卡車業務持續實現優於預期的成長。 2020 年第一季度，工業、航空航太和其他收入有機下降 10.4%。我們的工業業務有機下降了 12.3%，因為中國因疫情導致的長期停工導致業務下降超過 33%，而全球工業市場放緩約 15%。我們的汽車業務本季有機下降 10.4%。這主要是由於終端市場下降 20% 所致。一季中國汽車市場下滑49%。然而，森薩塔的強勁內容成長幫助抵消了這一下降的很大一部分。隨著該地區設施開始重新開放和產量增加，我們預計將出現大幅復甦。在我們的北美和歐洲汽車業務中，我們發現與客戶在本季最後兩週關閉工廠相關的收入大幅下降。在全球範圍內，我們仍然公佈了 600 個基點的市場成長。此外，我們看到原始設備製造商（主要是中國的原始設備製造商）在本季度建立庫存，部分原因是為了確保在重新開工和提高產量時有供應。我們估計，此次庫存建設將帶來約 310 個基點的成長，我們預計這種情況將在未來幾季得到緩解。

Despite the underlying challenges in the end markets in the first quarter, we delivered significant revenue outgrowth as shown on Slide 7, relative to our end markets. Sensata serves high-growth segments in all of our end markets. Our competitive position is strong in sensor-rich solutions for efficient, connected subsystems as well as cleaner and more electrified equipment. We have secured significant new business wins in recent years that enable us to achieve secular growth, and we are on pace to continue to outgrow underlying end market production. Underlying most of our recent new business wins has been regulatory and consumer-driven trends towards safer, cleaner and more efficient equipment, which are the fundamental long-term drivers of our business. Despite current end market headwinds, we continue to demonstrate significant outgrowth relative to the end markets that we serve in the first quarter, posting market outgrowth of 930 basis points in heavy vehicle off-road, 600 basis points in automotive and 430 basis points in aerospace. The adoption of NS VI emissions regulations in China and BS VI in India is driving significant new content for us with local HVOR and automotive OEMs. Similar to the EU 6 regulations in Europe, these regulations are aimed at reducing emissions. To meet these regulations, OEMs are installing more advanced

儘管第一季終端市場面臨潛在挑戰，但相對於我們的終端市場，我們實現了顯著的收入成長，如幻燈片 7 所示。森薩塔為我們所有終端市場的高成長細分市場提供服務。我們在高效、互聯子系統以及更清潔、更電氣化的設備的感測器豐富的解決方案方面擁有強大的競爭優勢。近年來，我們贏得了重大的新業務，使我們能夠實現長期成長，並且我們的成長速度將繼續超過潛在的終端市場產量。我們最近贏得的大部分新業務的基礎是監管和消費者驅動的趨勢，即更安全、更清潔和更有效率的設備，這是我們業務的根本長期驅動力。儘管目前終端市場面臨阻力，但相對於我們第一季所服務的終端市場，我們繼續展現出顯著的成長，重型越野車市場成長930 個基點，汽車市場成長600 個基點，航空航太市場成長430個基點。中國採用 NS VI 排放法規和印度採用 BS VI 排放法規為我們與當地 HVOR 和汽車 OEM 帶來了重要的新內容。與歐洲的EU 6法規類似，這些法規旨在減少排放。為了滿足這些法規，原始設備製造商正在安裝更先進的

exhaust control systems that include our high-temperature and differential pressure sensors. Similar trends in Europe and North America are driving strong market outgrowth in these regions as well.

排氣控制系統，包括我們的高溫和壓力差感知器。歐洲和北美的類似趨勢也推動了這些地區的強勁市場成長。

Moving to Slide 8. I want to share some updates on key progress we are making in our megatrend initiatives. We continue to believe these investments will further our end market diversification, increase our long-term growth rate and provide important competitive advantages as these trends transform our world. Despite the impact of COVID-19, we see no evidence that customers are meaningfully slowing their investments in these areas. During Q1, we closed $15 million of new business with customers for sensing and vehicle area network solutions within our Smart & Connected initiative. This brings the total new business to over $90 million, with a further $75 million being quoted. We are testing proof of concepts within Smart & Connected with some of the world's leading fleet managers. Initial results of 4 active pilots demonstrate that our solution works very well in real-world environments, so far capturing more than 2 million miles of mission-critical data on trucks and trailers in our customers' fleets in North America, providing them with information on vehicle readiness and reducing downtime and maintenance costs.

前往投影片 8。我們仍然相信，隨著這些趨勢改變我們的世界，這些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，並提供重要的競爭優勢。儘管受到 COVID-19 的影響，但我們沒有看到任何證據表明客戶正在有意義地放緩在這些領域的投資。第一季度，我們在智慧互聯計畫中與客戶完成了 1500 萬美元的感測和車輛區域網路解決方案新業務。這使得新業務總額超過 9,000 萬美元，另外還有 7,500 萬美元的報價。我們正在與一些世界領先的車隊管理者一起測試智慧與互聯的概念驗證。 4 名活躍試點的初步結果表明，我們的解決方案在現實環境中運作良好，到目前為止，已捕獲了北美客戶車隊中卡車和拖車超過 200 萬英里的關鍵任務數據，為他們提供了以下資訊：車輛準備就緒並減少停機時間和維護成本。

On the Electrification front, we are expanding the products and solutions we provide to include those for critical applications for hybrid and battery electric vehicles as well as other electric equipment, such as charging stations. During Q1, we closed $50 million in new business wins in the area of electrification. Our -- as electrification gradually increases its penetration, it represents an increased opportunity for our high-voltage contactor, e-motor position, thermal management and thermal runaway sensing offerings. The acquisition of GIGAVAC expanded our electrification offerings into high-voltage contactors and fast disconnect devices. We are quickly establishing ourselves as the premium -- the standard for premium equipment, particularly for the most challenging applications with high current levels.

在電氣化方面，我們正在擴展我們提供的產品和解決方案，以涵蓋混合動力和純電動車以及充電站等其他電氣設備關鍵應用的產品和解決方案。第一季度，我們在電氣化領域贏得了 5000 萬美元的新業務。隨著電氣化的滲透率逐漸提高，我們的高壓接觸器、馬達位置、熱管理和熱失控感測產品的機會也隨之增加。收購 GIGAVAC 將我們的電氣化產品擴展到高壓接觸器和快速斷開設備。我們正在迅速確立自己的高端地位——高端設備的標準，特別是對於具有高電流水平的最具挑戰性的應用。

During the first quarter, we began production of high-voltage contactors in Aguascalientes, Mexico to facilitate growth with a new highly efficient production line. We are pleased with our demonstrated progress against these 2 initiatives, which offer important long-term diversification as well as significant new market opportunities for Sensata.

第一季度，我們開始在墨西哥阿瓜斯卡連特斯生產高壓接觸器，以透過新的高效生產線促進成長。我們對這兩項措施所取得的進展感到高興，它們為森薩塔提供了重要的長期多元化以及重要的新市場機會。

I'd now like to turn the call over to Paul to review our first quarter 2020 results in more detail and to describe leading economic indicators that we track. After which, I will provide some summary comments. Paul?

我現在想將電話轉給 Paul，讓他更詳細地回顧我們 2020 年第一季的業績，並描述我們追蹤的領先經濟指標。之後，我將提供一些總結性評論。保羅？

Thank you, Jeff. Key highlights for the first quarter, as shown on Slide 10, include: revenue of $774.3 million, a decrease of 11.1% for the first quarter of 2019; changes in foreign currency decreased revenue by 0.7%. Excluding the impact of foreign currency, organic revenue declined 10.4%, largely due to the impact of the COVID-19 pandemic. Adjusted operating income was $136.7 million, a decrease of 27.5% compared to the first quarter of 2019, primarily due to lower revenues, productivity headwinds from our manufacturing facilities running at significantly lower capacity, elevated costs to safeguard our employees and local government restrictions, which, altogether, limited our ability to align our costs to the declining end market demand. Higher design and development spend to execute on new business wins and megatrend growth programs as well as higher compensation costs to retain and incent top talent were mostly offset by savings from repositioning actions taken last year. Adjusted net income was $83.2 million, a decrease of 40.3% compared to the first quarter of 2019. Adjusted EPS was $0.53 in the first quarter, a decrease of 37.6% compared to the prior year quarter and slightly better than the decline in adjusted net income, the benefit of share repurchases.

謝謝你，傑夫。如投影片 10 所示，第一季的主要亮點包括： 營收為 7.743 億美元，較 2019 年第一季下降 11.1%；外幣變動使收入減少 0.7%。剔除外匯影響，有機收入下降 10.4%，主要是由於 COVID-19 大流行的影響。調整後營業收入為 1.367 億美元，較 2019 年第一季下降 27.5%，主要是由於收入下降、生產設施產能大幅降低帶來的生產力阻力、保護員工的成本增加以及當地政府的限制，總的來說，限制了我們根據不斷下降的終端市場需求調整成本的能力。用於執行新業務和大趨勢成長計畫的較高設計和開發支出，以及用於保留和激勵頂尖人才的較高薪酬成本，大部分被去年採取的重新定位行動所節省的費用所抵消。調整後淨利為8,320萬美元，較2019年第一季下降40.3%。購的好處。

Now I'd like to comment on the performance of our 2 business segments in the first quarter of 2020. I will start with Performance Sensing on Slide 11. Our Performance Sensing business reported revenues of $568.7 million in the first quarter of 2020, a decrease of 11.1% compared to the same quarter last year. Excluding the negative impact from foreign currency of 0.7%, Performance Sensing reported an organic revenue decline of 10.4%. Our Automotive business reported an organic revenue decline of 10.4% in the first quarter, but outpaced its end market by 600 basis points. In addition, organic revenue declined in each of our 3 major geographic regions. Our HVOR business reported an organic revenue decline of 10.7% in the first quarter, but outpaced its end market by 930 basis points, primarily due to strong content growth in our China on-road truck business, driven by the adoption of NS VI emissions regulations. Performance Sensing operating income was $129.1 million in the first quarter of 2020, a decrease of 14.2% as compared to the same quarter last year. Performance Sensing profit as a percent of revenue was 22.7% in the first quarter, a decline of 80 basis points from the same quarter last year. The decline in segment operating income was primarily driven by lower revenues, manufacturing facilities operating at significantly lower capacity and higher design and development effort to execute on new business wins and megatrend growth programs, somewhat offset by savings from repositioning actions taken last year.

現在我想談談我們2020年第一季2個業務部門的業績。年減與去年同期相比成長11.1%。剔除外匯帶來的 0.7% 的負面影響，Performance Sensing 的有機收入下降了 10.4%。我們的汽車業務第一季的有機收入下降了 10.4%，但比終端市場高出 600 個基點。此外，我們的 3 個主要地理區域的有機收入均有所下降。我們的 HVOR 業務第一季的有機收入下降了 10.7%，但超出了終端市場 930 個基點，這主要是由於我們的中國公路卡車業務在採用 NS VI 排放法規的推動下實現了強勁的內容增長。 2020年第一季Performance Sensing營業收入為1.291億美元，較去年同期下降14.2%。第一季Performance Sensing利潤佔營收的百分比為22.7%，比去年同期下降80個基點。部門營業收入的下降主要是由於收入下降、製造設施的產能大幅降低以及為執行新業務和大趨勢增長計劃而加大設計和開發力度，但去年採取的重新定位行動所節省的費用在一定程度上抵消了這一影響。

As shown on Slide 12, Sensing Solutions reported revenues of $205.6 million in the first quarter of 2020, a decrease of 10.8% as compared to the same quarter last year. Excluding the negative impact from foreign currency of 0.4%, Sensing Solutions organic revenue declined 10.4%. Revenue in our industrial business declined 12.3% organically in the first quarter as industrial end markets declined 15%. Revenue in our aerospace business declined 2% organically in the first quarter, producing 430 basis points of growth above its end market, which declined 6.3% on OEM production delays in a weaker aftermarket. Sensing Solutions operating income was $55.9 million in the first quarter of 2020, a decrease of 25.4% from the same quarter last year. Sensing Solutions profit as a percentage of revenue was 27.2% in the first quarter, a decline of 530 basis points from the same quarter last year. The decline in segment operating income was primarily due to lower revenues, manufacturing facilities operating at significantly lower capacity and unfavorable product mix, somewhat offset by savings from restructuring actions taken last year. Corporate and other costs not included in segment operating income were $88.8 million in the first quarter of 2020, which includes a $29.2 million loss related to an intellectual property litigation judgment, which we intend to appeal. Higher compensation costs to retain and incent our top talent and higher administrative expenses contributed to the higher corporate and other costs as compared to the same quarter last year. Excluding charges added back to our non-GAAP results, corporate and other costs were $47 million in the first quarter of 2020, an increase of $12.3 million from the same quarter last year due primarily to higher compensation and administrative costs.

如投影片 12 所示，Sensing Solutions 報告 2020 年第一季營收為 2.056 億美元，比去年同期下降 10.8%。排除0.4%的外匯負面影響，感測解決方案的有機收入下降了10.4%。由於工業終端市場下降了 15%，我們第一季工業業務的營收有機下降了 12.3%。我們的航空航太業務第一季的營收有機下降了 2%，比終端市場成長了 430 個基點，而終端市場因售後市場疲軟而導致 OEM 生產延遲而下降了 6.3%。感測解決方案2020年第一季營業收入為5,590萬美元，較去年同季下降25.4%。第一季感測解決方案利潤佔營收的比例為27.2%，較去年同期下降530個基點。部門營業收入下降的主要原因是收入下降、生產設施的產能大幅降低以及不利的產品組合，但去年採取的重組行動所節省的費用在一定程度上抵消了這一影響。 2020 年第一季度，未計入部門營業收入的公司和其他成本為 8,880 萬美元，其中包括與智慧財產權訴訟判決相關的 2,920 萬美元損失，我們打算對此提起上訴。與去年同期相比，留住和激勵頂尖人才的薪酬成本上升以及管理費用上升導致企業成本和其他成本上升。不計入非 GAAP 業績中的費用，2020 年第一季的公司和其他成本為 4,700 萬美元，比去年同期增加 1,230 萬美元，這主要是由於薪酬和管理成本增加。

Slide 13 shows Sensata's first quarter 2020 non-GAAP results. Adjusted gross profit declined 17.2% as compared to the same quarter last year to $243.9 million. And gross margins declined 230 basis points to 31.5%. The decline in gross profit and margin were primarily due to lower revenues, productivity headwinds from our manufacturing facilities running at significantly lower capacity, elevated costs to safeguard our employees and local government restrictions, which altogether limited our ability to align our costs to the declining end market demand. We continue to increase design and development spend to execute on new business wins and megatrend growth programs, primarily in the areas of Smart & Connected and Electrification. Despite this higher investment, R&D costs were down 1.8% as compared to the same quarter last year due to savings from repositioning actions and favorable changes in foreign exchange rates. Higher compensation to retain and incent our top talent was the primary driver of the $1.9 million increase in SG&A costs as compared to the same quarter last year or a 2.9% increase. As a result, adjusted operating income was down 27.5% compared to the prior year quarter. Our tax rate as a percent of adjusted profit before tax increased 410 basis points compared to the prior year, primarily due to jurisdictional profit mix. And finally, adjusted EPS was $0.53, down $0.32 or 37.6% as compared to the first quarter of 2019.

幻燈片 13 顯示了森薩塔 2020 年第一季非 GAAP 業績。調整後毛利較去年同期下降 17.2%，至 2.439 億美元。毛利率下降 230 個基點至 31.5%。毛利和利潤率下降的主要原因是收入下降、產能大幅降低的製造設施帶來的生產力阻力、保護員工的成本上升以及當地政府的限制，這些都限制了我們調整成本以適應下降趨勢的能力市場需求。我們繼續增加設計和開發支出，以執行新的業務勝利和大趨勢成長計劃，主要是在智慧互聯和電氣化領域。儘管投資增加，但由於重新定位行動和外匯匯率有利變化帶來的節省，研發成本仍比去年同期下降了 1.8%。為留住和激勵頂尖人才而提供的更高薪酬是 SG&A 成本較去年同期增加 190 萬美元（即增加 2.9%）的主要推動力。因此，調整後營業收入與去年同期相比下降了 27.5%。與前一年相比，我們的稅率佔調整後稅前利潤的百分比增加了 410 個基點，這主要是由於轄區利潤組合所致。最後，調整後每股收益為 0.53 美元，較 2019 年第一季下降 0.32 美元，即 37.6%。

On Slide 14, using 2019 financial data, we provide a breakdown for the types of spend that make up our cost structure and their relative size to net revenue. The majority of our costs are variable in nature, the largest portion of which is material purchases, followed by direct labor wages, freight and operating supplies. These types of costs scale directly with revenue and are reduced through continuous product design and cost productivity improvements. Semi-variable costs are comprised primarily of indirect salaries and benefits, project spend, outside services and utilities. These costs are more structural in nature and scale with revenue to some extent, but require more specific management action to drive this outcome. Fixed costs include items such as depreciation, facility leases and licensing and support costs related to our enterprise operating systems. In the first quarter of 2020, we saw a decremental margins higher than normal as the COVID-19 pandemic restricted our operations and limited our ability to manage and align our costs to the rapid decline in demand and from our actions to protect our employees. Moreover, government mandates in certain locations required us to continue to pay our direct labor despite plant closures, and freight costs increased dramatically as logistics supply chains were disrupted. We have taken a number of strong actions going into the second quarter to reduce our costs given the anticipated lower revenue. For example, as Jeff mentioned, we have reduced salaries for management by 25% during the quarter and implemented furloughs across the employee base, in line with regional and country-specific rules to achieve a similar savings across our indirect labor population. We are also closely examining all of our operating costs to ensure they are prioritized appropriately. We expect these actions to generate approximately $15 million to $20 million in cost savings during the second quarter. It's also important to note that approximately 5% of our total operating costs are noncash, such as depreciation expense, amortization expense and equity compensation. In short, we are actively managing our business and cost structure to diminish the impact of the operating challenges we are facing and the end market declines we're experiencing and anticipating, while continuing to invest in our people, our future and to create increasing value for all of our stakeholders.

在投影片 14 中，我們使用 2019 年財務數據，對構成成本結構的支出類型及其與淨收入的相對規模進行了細分。我們的大部分成本本質上是可變的，其中最大部分是材料採購，其次是直接勞動力工資、運費和營運用品。這些類型的成本與收入直接相關，並透過持續的產品設計和成本生產率的提高而降低。半變動成本主要包括間接工資和福利、專案支出、外部服務和公用事業。這些成本在本質上更具結構性，並且在一定程度上與收入有關，但需要更具體的管理行動來推動這一結果。固定成本包括與我們的企業作業系統相關的折舊、設施租賃、許可和支援成本等項目。 2020 年第一季度，由於 COVID-19 大流行限制了我們的運營，限制了我們管理和調整成本以適應需求快速下降和保護員工行動的能力，我們的利潤率下降幅度高於正常水平。此外，儘管工廠關閉，某些地區的政府命令仍要求我們繼續支付直接勞動力工資，而且由於物流供應鏈中斷，貨運成本急劇增加。鑑於預期收入下降，我們在第二季採取了一系列強有力的行動來降低成本。例如，正如傑夫所提到的，我們在本季度將管理層的工資減少了25%，並根據地區和國家的特定規則在整個員工群體中實施了休假，以在我們的間接勞動力人口中實現類似的節省。我們也正在仔細檢查所有營運成本，以確保它們得到適當的優先排序。我們預計這些行動將在第二季節省約 1500 萬至 2000 萬美元的成本。還需要注意的是，我們總營運成本中約 5% 是非現金成本，例如折舊費用、攤提費用和股權補償。簡而言之，我們正在積極管理我們的業務和成本結構，以減少我們面臨的營運挑戰以及我們正在經歷和預期的終端市場下滑的影響，同時繼續投資於我們的員工、我們的未來並創造不斷成長的價值為了我們所有的利害關係人。

Slide 15 demonstrates Sensata's ability to manage down its net leverage and net leverage ratio, which has declined steadily from 4.6x at the end of 2015 to 2.9x today, reflecting our strong cash generation and effective capital deployment. Having drawn down $400 million from our revolving line of credit on April 1, we entered the second quarter with $1.2 billion in cash on the balance sheet. We have substantial buffer to our leverage covenants and 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 about our liquidity position and our ability to manage through and adapt to the current market environment. Free cash flow was $69 million during the first quarter of 2020 or 83% of adjusted net income, which is a dramatic improvement when compared to 51% of adjusted net income in the same quarter last year. We are reducing capital expenditures by $45 million to $120 million to $130 million for the full year 2020 to further improve our financial flexibility.

幻燈片15 展示了森薩塔管理降低淨槓桿率和淨槓桿率的能力，淨槓桿率已從2015 年底的4.6 倍穩步下降至如今的2.9 倍，反映出我們強勁的現金生成能力和有效的資本部署。 4 月 1 日，我們從循環信貸額度中提取了 4 億美元，進入第二季後，我們的資產負債表上有 12 億美元的現金。我們的槓桿契約和債務協議有很大的緩衝。我們的債務的第一個未償到期日要到 2023 年 10 月，屆時一張 5 億美元的無擔保票據到期。因此，我們對我們的流動性狀況以及管理和適應當前市場環境的能力充滿信心。 2020 年第一季的自由現金流為 6,900 萬美元，佔調整後淨利的 83%，與去年同期調整後淨利的 51% 相比，這是一個巨大的進步。我們將 2020 年全年的資本支出減少 4,500 萬美元至 1.2 億至 1.3 億美元，以進一步提高我們的財務靈活性。

As announced earlier this month, we have withdrawn our full year guidance as the negative impact of the COVID-19 pandemic on our business remains highly uncertain, quickly changing and unpredictable. However, based on current indicators of demand, revenue in the second quarter of 2020 will likely be down significantly from the first quarter of 2020. On Slide 16, I show a number of economic indicators that we track to help assess future demand for our products and solutions. IHS is our primary source for information on future automotive production. Currently, they are predicting a 47% decline in global automotive production in the second quarter and a 22% decline for the full year. In addition, we track automotive plant closures and communicate routinely with our automotive customers to gain alignment on future demand expectations which strongly influence our view of the market. Each week of auto production in North America and Europe is worth approximately $25 million in revenue to Sensata. We estimate that during the second quarter, auto OEMs in these regions will shut down their production lines for an average of 4 to 5 weeks. For our heavy vehicle and off-road business, we use various production forecasts from third-party firms such as LMC to help us understand future production levels. For the second quarter, LMC is projecting a 60% decline in North America Class 8 production rates. We also evaluate economic indicators to gauge the health of our HVOR customers and the markets they serve and which we believe are strongly correlated to demand for our HVOR products. These indicators include freight load factors, inventory sales ratios, building permits, industrial production, crop futures and farm machinery, and public statements from our large customers in the construction and ag sectors also helped them to form our view of the market. For our industrial business, we evaluate regional PMI data and forecast for GDP and housing starts without a forward-looking view of industrial demand, given their strong correlation with our historical industrial revenue. 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. In February, we expected lower production and demand relating to COVID-19. We lower our revenue by $40 million and our operating profit by approximately $20 million in the first quarter of 2020. Those estimates proved to be insufficient as we experienced a drop in both revenue and operating profit of roughly twice that of what we predicted as COVID-19 spread worldwide. Until we have a good sense for future levels of demand, it is difficult to accurately project revenue, operating profit and other financial metrics. With that said, we will continue our efforts to align our costs to normalized demand levels that we anticipate to develop over the coming quarters, while ensuring we are able to protect our employees and serve the needs of our customers.

正如本月稍早宣布的那樣，我們已撤回全年指引，因為 COVID-19 大流行對我們業務的負面影響仍然高度不確定、快速變化且不可預測。然而，根據目前的需求指標，2020 年第二季的營收可能會比 2020 年第一季大幅下降。和解決方案。 IHS 是我們未來汽車生產資訊的主要來源。目前，他們預計第二季全球汽車產量將下降 47%，全年將下降 22%。此外，我們還追蹤汽車工廠的關閉情況，並定期與汽車客戶溝通，以便與未來的需求預期保持一致，這強烈影響我們對市場的看法。北美和歐洲每週的汽車生產可為森薩塔帶來約 2500 萬美元的收入。我們預計，第二季度，這些地區的整車廠將平均關閉生產線4至5週。對於我們的重型車輛和越野業務，我們使用 LMC 等第三方公司的各種生產預測來幫助我們了解未來的生產水準。 LMC 預計第二季北美 8 級產能將下降 60%。我們也評估經濟指標，以衡量我們的 HVOR 客戶及其所服務的市場的健康狀況，我們認為這些指標與我們的 HVOR 產品的需求密切相關。這些指標包括貨運載運率、庫存銷售比率、建築許可、工業生產、農作物期貨和農業機械，而我們建築和農業領域大客戶的公開聲明也幫助他們形成了我們對市場的看法。對於我們的工業業務，我們評估地區 PMI 數據以及 GDP 和新屋開工預測，但沒有對工業需求進行前瞻性預測，因為它們與我們歷史工業收入密切相關。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。 2 月份，我們預計與 COVID-19 相關的產量和需求將會下降。 2020 年第一季度，我們的收入減少了4000 萬美元，營業利潤減少了約2000 萬美元。疫情期間的預測。在我們對未來的需求水準有良好的了解之前，很難準確地預測收入、營業利潤和其他財務指標。儘管如此，我們將繼續努力使我們的成本與我們預計未來幾季發展的正常需求水準保持一致，同時確保我們能夠保護我們的員工並滿足客戶的需求。

In closing, I'll echo Jeff's comments that we are operating in unprecedented times. We're fortunate that our employees are healthy and that as an organization, we have risen to meet the challenges this crisis has presented. While we cannot currently provide more comprehensive financial guidance for the remainder of 2020, we're all working diligently to ensure some [path] emerging from this time in a stronger financial position. I'll now turn the call back to Jeff for summary remarks.

最後，我同意傑夫的評論，即我們正處於前所未有的時代。我們很幸運，我們的員工都很健康，而且作為一個組織，我們已經奮起應對這場危機帶來的挑戰。雖然我們目前無法為 2020 年剩餘時間提供更全面的財務指導，但我們都在努力工作，以確保從此時開始出現某種[路徑]，實現更強勁的財務狀況。現在我將把電話轉回給傑夫，讓他做總結發言。

Thank you, Paul. Before turning to Q&A, I want to wrap up with a few key messages that I show on Slide 17. We continue to actively monitor all of our end markets and customers to ensure that our resources are balanced against changing forecast and prioritized against critical growth opportunities. We are adjusting manufacturing flows not only to protect employees, but also to match demand from our customers. We have been highly effective at outgrowing our end markets no matter what conditions we face. We remain confident in our ability to deliver attractive end market outgrowth this year and into the future. We continue to deliver solid cash flow performance, which demonstrates Sensata's resilient financial model. We continue to plan investments in our megatrends and other growth initiatives, and we are making excellent progress on this front. And lastly, we continue to believe that the overall market environment may provide interesting opportunities to further strengthen our portfolio through value-creating bolt-on M&A.

謝謝你，保羅。在進行問答之前，我想總結投影片 17 中展示的一些關鍵資訊。我們正在調整製造流程，不僅是為了保護員工，也是為了滿足顧客的需求。無論我們面臨什麼條件，我們都非常有效地超越了我們的終端市場。我們對今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。我們持續提供穩健的現金流表現，這反映了森薩塔富有彈性的財務模式。我們繼續計劃對大趨勢和其他成長舉措進行投資，並且我們在這方面取得了巨大進展。最後，我們仍然相信，整體市場環境可能會提供有趣的機會，透過創造價值的補強併購進一步加強我們的投資組合。

Our first priority remains the health and safety of our employees. We have long-standing relationships with our customers, and our financial position is strong. This position will allow us to emerge from this period of crisis as a stronger company. Now I'll turn the call back over to Jacob.

我們的首要任務仍然是員工的健康和安全。我們與客戶有著長期的合作關係，並且我們的財務狀況穩健。這一立場將使我們能夠擺脫這段危機，成為一家更強大的公司。現在我將把電話轉回給雅各。

Thank you, Jeff. Given the large number of listeners on the call, I'll ask each of you to try to limit yourself to one question, and then what we're going to do is circle back for follow-ups if time permits. Keith, please assemble the Q&A roster.

謝謝你，傑夫。鑑於電話會議中有大量聽眾，我會要求你們每個人盡量限制自己提出一個問題，然後如果時間允許，我們要做的就是回過頭來進行後續跟進。 Keith，請整理問答名單。

(Operator Instructions) And the first question comes from Wamsi Mohan with Bank of America Merrill Lynch.

（操作員說明）第一個問題來自美銀美林的 Wamsi Mohan。

Jeff, can you talk a little bit about how you view Sensata in this cycle versus the financial crisis? Maybe talk about some of the things that have changed between the 2 cycles? And maybe if you can contrast the peak to trough margin performance? I know you guys commented a little bit on decrementals being a little different. What's driving that?

Jeff，您能談談您如何看待本輪週期與金融危機中的森薩塔嗎？也許可以談談這兩個週期之間發生的一些變化？也許您可以對比利潤表現的峰值和谷值？我知道你們對減量有一點不同的評論。是什麼推動了這一點？

Yes. That's great, Wamsi. Thanks for the question. I think where we're different is that we're a more diversified business, from both an end market, geographic, product category standpoint. So that's an important area where we're very different from where we were in '08 and '09. We're obviously much less leveraged than we were in '08, '09. Before our IPO, we were private equity owned, and we had a fair amount of debt on our balance sheet, a lot more than we have today, for sure.

是的。太好了，瓦姆西。謝謝你的提問。我認為我們的不同之處在於，從終端市場、地理、產品類別的角度來看，我們是一家更多元化的企業。所以這是一個重要的領域，我們與 08 年和 09 年的情況非常不同。與 08 年、09 年相比，我們的槓桿率顯然要低得多。在我們首次公開募股之前，我們是私募股權公司所有，我們的資產負債表上有相當數量的債務，肯定比現在多得多。

I think the areas where we're the same are quite important. We still have a very variable cost model, our cash flow characteristics are very similar in terms of capital needed to drive our business, Paul went over the low amount of fixed cost in our business. And we also continue to focus on mission-critical, hard-to-do applications. So we've stayed very true to that, which is demonstrated in our overall margin profile.

我認為我們的相同點非常重要。我們仍然有一個非常可變的成本模型，我們的現金流量特徵在推動我們的業務所需的資本方面非常相似，保羅回顧了我們業務中較低的固定成本。我們也持續專注於任務關鍵型、難以完成的應用程式。因此，我們一直堅持這一點，這在我們的整體利潤狀況中得到了體現。

I think the other area where we're the same is around our commitment to come out of this a stronger company and to do the things that we need to during this market cycle that will allow us to do that.

我認為我們相同的另一個領域是我們致力於成為一家更強大的公司，並在這個市場週期中做我們需要做的事情，這將使我們能夠做到這一點。

So those are my thoughts on that one. I appreciate the question.

這就是我對此的想法。我很欣賞這個問題。

And the next question comes from Samik Chatterjee with JPMorgan.

下一個問題來自摩根大通的 Samik Chatterjee。

Jeff, I want to check in with you. We understand the tough end market conditions at this point, but what kind of impact is that having on the launch cadence or launch plans for the back half given the current disruption? Are you seeing any material slowdown there? And at the same time, there is some talk about kind of a rollback in emission regulations in the U.S. Are you seeing any other countries kind of follow the same path or likely to follow to ease the recovery? And what kind of impact will that have?

傑夫，我想和你聯絡一下。我們了解目前終端市場情況嚴峻，但鑑於當前的干擾，這對下半年的發布節奏或發布計畫有何影響？您是否看到任何實質放緩？同時，有一些關於美國排放法規回滾的討論。這會產生什麼樣的影響？

Great. Well, I'll hit this a little bit from a high level, and then I'll ask Paul Chawla to give a little bit of commentary in terms of what he's seeing on the ground with his customers. I would direct you to look at sort of what we've produced in the first quarter in terms of outgrowth. That should suggest to you that at least in the first quarter and also my prepared comments around our confidence associated with continued outgrowth for the balance of the year around the nature of how our customers will launch new platforms. We're not seeing them change their perspective on this, and we're continuing to feel very confident. There may be some push-outs a month or 2 or 3 associated with folks' inability to collaborate and do things that they normally would, but we're not seeing any meaningful change in terms of the long-term outlook. I'll let Paul Chawla address the question associated with emissions regulation push-outs and other factors that you mentioned.

偉大的。好吧，我將從高層次上談一下這個問題，然後我會請 Paul Chawla 根據他在客戶中所看到的情況發表一些評論。我會引導您看看我們在第一季的產出方面的產出。這應該向您表明，至少在第一季度，以及我準備好的評論，圍繞我們的信心，我們對今年剩餘時間的持續增長充滿信心，圍繞我們的客戶將如何推出新平台的性質。我們沒有看到他們改變對此的看法，我們仍然充滿信心。一個月或兩三個月可能會出現一些與人們無法協作和做他們通常會做的事情相關的退出，但就長期前景而言，我們沒有看到任何有意義的變化。我將讓 Paul Chawla 解決與排放法規取消和您提到的其他因素相關的問題。

Thank you, Jeff. Here's Paul Chawla. As Jeff said, correctly said, we are not seeing any major change on the landscape in front of us. In China, in Q1, we had still very strong pull for National VI content and that carries on happening. We are seeing the same in India for BS VI. And also in Europe, despite there are discussions of some delays of the -- around the CO2 potential penalties the industry will have to pay, even though there are some delays, we are not seeing anything in launches or content. Some model years, facelifts of vehicles and platforms could be shifting by 2 to 6 months. But especially in the Electrification area, we're still seeing very strong pull and business as normal.

謝謝你，傑夫。請聽保羅·查拉的報道。正如傑夫所說，正確地說，我們沒有看到我們面前的情況發生任何重大變化。在中國，第一季度，我們對國六內容的吸引力仍然非常大，而且這種情況還在繼續發生。我們在印度的 BS VI 中也看到了同樣的情況。同樣在歐洲，儘管存在一些關於該行業必須支付的二氧化碳潛在處罰的延遲的討論，儘管存在一些延遲，但我們在發布或內容中沒有看到任何內容。某些車型年份、車輛和平台的改款可能會推遲 2 至 6 個月。但特別是在電氣化領域，我們仍然看到非常強勁的拉力和正常的業務。

And the next question comes from Craig Hettenbach with Morgan Stanley.

下一個問題來自摩根士丹利的 Craig Hettenbach。

Understanding you're not providing specific guidance, but looking at kind of adjusted operating margin of 17.7% last quarter, anything from a range that you'd expect in the coming quarters in terms of just kind of puts and takes to think about for the adjusted op margin?

了解您並沒有提供具體的指導，而是專注於上個季度 17.7% 的調整後營業利潤率，這是您在未來幾個季度中考慮的看跌期權和看跌期權的預期範圍內的任何內容調整後的操作保證金？

Yes. So Paul Vasington, if you wouldn't mind hitting on some points about that, that would be great.

是的。所以保羅·瓦辛頓（Paul Vasington），如果你不介意談一些關於這個問題的觀點，那就太好了。

Sure. I think the big point here that we made in my prepared remarks is the fact that we're taking actions to reduce our cost structure through pay cuts and furloughs and watching our operating expenses, reducing any discretionary spend that's not critical. And that's what we're making in Q1 -- I'm sorry, in Q2. As we look forward, we're going to continue to look to align our cost structure to the anticipated demand that we're going to see, applying all the same tools and maybe other tools to achieve that outcome.

當然。我認為我們在準備好的演講中提出的要點是，我們正在採取行動，透過減薪和休假來減少成本結構，並關注我們的營運支出，減少任何不重要的可自由支配支出。這就是我們在第一季所做的事情——對不起，在第二季。展望未來，我們將繼續努力使我們的成本結構與我們將看到的預期需求保持一致，應用所有相同的工具，也許還有其他工具來實現這一結果。

And the next question comes from Amit Daryanani with Evercore.

下一個問題來自 Evercore 的 Amit Daryanani。

I guess, maybe a comparable question but on the revenue side, when I think about June quarter revenues, to your point, we can see what IHS production numbers look like on a year-over-year basis. What are the puts and takes to that as you go forward? And very specifically, I think a lot of your peers have talked about June being the trough and revenue starting to improve post that. Would you endorse that belief system at this point?

我想，也許是一個類似的問題，但在收入方面，當我考慮六月季度的收入時，就你的觀點而言，我們可以看到 IHS 的產量數據同比情況如何。當您繼續前進時，有哪些建議和要求？非常具體地說，我認為很多同行都談到六月是低谷，之後收入開始改善。此時你會認可這個信仰體系嗎？

Yes, Amit, great question. Based upon what we're hearing from third-party forecasters and some of the quotes that we provided, for instance, in the automotive market, given that Q2 is forecasted to be down so dramatically and the full year is clearly expecting a recovery from the Q2 rate. Obviously, we look at those third-party forecast. We talk with our customers. If you look at the specifics around what's happening in the second quarter associated with our customers, many of them are shutting down for a lot of the quarter, 4, 5, 6 weeks their production will be down. And so unless we see continued impact associated with quarantine measures, which force our customers to continue those, we would expect things to recover. I think the big question that relates back to the question that Craig asked, which is what is the normalized demand profile. And obviously, we'll be looking to align our cost structure to that as opposed to a more depressed outlook in terms of any given quarter. So that's sort of what we look at. That would be our view as well that Q2 would be the lowest based upon where the third parties are forecasting, and we'll continue to monitor that activity as well as engagement with our customers' fill rates and so forth to better judge how we'll come out of Q2. Thanks for the question.

是的，阿米特，好問題。根據我們從第三方預測者那裡聽到的信息以及我們提供的一些報價，例如，在汽車市場，考慮到第二季度預計將大幅下滑，而全年顯然預計會從汽車市場的復甦中恢復過來。第二季利率。顯然，我們會關注那些第三方的預測。我們與客戶交談。如果你看看第二季與我們的客戶相關的具體情況，他們中的許多人都會在本季的大部分時間關閉，他們的生產將減少 4、5、6 週。因此，除非我們看到與檢疫措施相關的持續影響，迫使我們的客戶繼續採取這些措施，否則我們預計情況會恢復。我認為一個大問題與克雷格提出的問題有關，即標準化的需求狀況是什麼。顯然，我們將尋求使我們的成本結構與此相一致，而不是在任何給定季度的前景更加黯淡。這就是我們所關注的。我們也認為，根據第三方的預測，第二季將是最低的，我們將繼續監控該活動以及與客戶的填充率等的互動，以更好地判斷我們的表現。謝謝你的提問。

The next question comes from Mark Delaney with Goldman Sachs.

下一個問題來自高盛的馬克·德萊尼。

Yes. I was hoping the company could provide an update on recent order trends that it is seeing globally. And then also if you could specifically comment on what Sensata is seeing in China in terms of orders and how the orders in China are comparing to pre-COVID levels?

是的。我希望該公司能夠提供其在全球範圍內看到的最新訂單趨勢的最新資訊。另外，您能否具體評論一下森薩塔在中國的訂單情況以及中國的訂單與新冠疫情爆發前的水平相比如何？

Mark, thanks for the question. So I'll give some very high-level commentary regarding orders, and then I'll ask Vineet Nargolwala to amplify a little bit in terms of discussions with customers. I think from -- I think you all know, we tend to quote fill rate in the quarter. And what we've determined is fill rate, given customers are shut down and their attention is on other matters other than their fill rate, that's not a very reliable measure for us right now. And we've been working with them to manage through that. But certainly, you can see that because we built inventory or our customers built inventory in the first quarter, some of that is due to them building inventory to make sure they're ready for a recovery. Some of it was GDI feeds and so forth that didn't get shut off because their response didn't happen quick enough. This was a very significant decline in a very short period of time. And so the response rate took some time. Vineet, why don't you provide a little bit more color in terms of what we're hearing from our customers in terms of fill and so forth.

馬克，謝謝你的提問。因此，我將針對訂單提供一些非常高水準的評論，然後我將要求 Vineet Nargolwala 在與客戶的討論方面進一步擴大影響力。我想你們都知道，我們傾向於引用本季的填充率。我們確定的是填充率，考慮到客戶被關閉並且他們的注意力集中在填充率以外的其他問題上，這對我們來說目前不是一個非常可靠的衡量標準。我們一直在與他們合作解決這個問題。但當然，您可以看到，因為我們在第一季建立了庫存或我們的客戶建立了庫存，其中一些是由於他們建立庫存以確保為復甦做好準備。其中一些是 GDI 來源等沒有關閉，因為它們的響應發生得不夠快。這是在很短的時間內非常顯著的下降。因此，響應速度需要一些時間。 Vineet，根據我們從客戶那裡聽到的填充等方面的情況，為什麼不提供更多的顏色呢？

Sure, Jeff. This is Vineet Nargolwala. So as we -- as Jeff outlined, our end markets continue to be pretty volatile, and it's -- the demand patterns continue to be pretty uncertain. As we look at it regionally, we are seeing China come back to normal, though the export markets out of China continue to be challenged. Our customers in North America and Europe continue to be in various stages of a lockdown, with plans of reopening their plants in a phased and a gradual manner. We're also seeing significant disruptions in the overall supply chain, which is also affecting our customers' production plans. Despite this, we continue to be very engaged with our customers in terms of understanding the state of operations and ultimately, demand. As we think about our order books, especially in the industrial markets, they're continuing to be pretty stable relative to our historicals. But what is not clear is how does the demand shape up once our customers come back and what does the follow-on demand look like.

當然，傑夫。我是維尼特·納爾戈瓦拉。因此，正如傑夫所概述的那樣，我們的終端市場仍然相當不穩定，而且需求模式仍然相當不確定。從區域角度來看，我們看到中國正在恢復正常，儘管中國的出口市場持續受到挑戰。我們在北美和歐洲的客戶繼續處於封鎖的不同階段，並計劃分階段逐步重新開放工廠。我們也看到整個供應鏈出現嚴重中斷，這也影響了我們客戶的生產計畫。儘管如此，我們仍然與客戶保持密切聯繫，了解營運狀況和最終需求。當我們考慮我們的訂單簿時，尤其是在工業市場，它們相對於我們的歷史記錄仍然相當穩定。但尚不清楚的是，一旦我們的客戶回來，需求將如何形成，以及後續需求是什麼樣的。

From an inventory standpoint, we are seeing some levels of inventory buildup in the channel as some customers took product to be ready for when the plants reopen. We expect that will draw down over the following quarter as the plants reopen and the normalized demand pattern comes into view. But we continue to work with our customers on new business opportunities and providing them the support to fill their clients as they come back online.

從庫存的角度來看，我們看到渠道中存在一定程度的庫存積累，因為一些客戶在工廠重新開業時需要準備產品。我們預計，隨著工廠重新開放和正常化的需求模式的出現，這一數字將在下個季度下降。但我們將繼續與客戶合作尋找新的商機，並為他們提供支持，以便在他們重新上線時滿足他們的需求。

And the next question comes from Shawn Harrison with Loop Capital.

下一個問題來自 Loop Capital 的 Shawn Harrison。

A quick clarification and then a long-term question. The 600 basis points of outgrowth, did that include any of the benefit from the prebuy activity? Or is that adjusted? And then second, just wondering if you're seeing any kind of market share opportunities here during this downturn? Are there other suppliers unable to fulfill demand, or Sensata out of executing in that, maybe you can see some incremental outgrowth as we come out of this recession?

快速澄清，然後提出一個長期問題。 600 個基點的成長，是否包括預購活動帶來的任何好處？或者說是這樣調整的？其次，我想知道在這次經濟低迷時期您是否看到了任何類型的市場份額機會？是否有其他供應商無法滿足需求，或者森薩塔無法執行，也許您可以在我們走出經濟衰退時看到一些增量增長？

Yes. So let me hit on the market share question, and then Paul Vasington can touch on the outgrowth. You know from our business that share doesn't shift dramatically. We're a long-cycle business. We're designed into applications with our customers, and there's a lot of engineering work that's done to allow our products to enable the functionality in the systems that we go into. So share shift tends not to happen dramatically in most of our end markets. There are some small pockets of our end markets that we serve, where they're more shorter cycle where there's an opportunity to shift. I think the key here that we're observing is that during these difficult times, customers look to financial stability of their partners, and they look to whether or not we're weathering the storm with them. And that's what allows us to continue to build these long-standing relationships over a very long period of time. And customers remember that. And so we'll -- we've been around for 100 years as a company. We've established these relationships for decades with our customers. And we'll continue to do that. No major shift in share. But certainly, the more we work with our customers through these tough times, they'll put the thumb on the scale in terms of who they pick for their next opportunity. So that's what we're viewing as the biggest opportunity: work with them, and they'll continue to choose us more frequently than others in terms of opportunity. Paul, you want to hit on the outgrowth question?

是的。那麼讓我來談談市場佔有率問題，然後保羅·瓦辛頓可以談談成長。您從我們的業務中知道，份額不會發生巨大變化。我們是一個長週期的企業。我們與客戶一起設計應用程序，並完成了大量的工程工作，以使我們的產品能夠在我們進入的系統中啟用功能。因此，在我們的大多數終端市場中，份額轉移往往不會發生劇烈的變化。我們服務的終端市場有一些小部分，它們的週期更短，有機會轉變。我認為我們觀察到的關鍵是，在這些困難時期，客戶希望他們的伴侶的財務穩定，他們希望我們是否能與他們一起度過難關。這就是我們能夠在很長一段時間內繼續建立這些長期關係的原因。客戶會記住這一點。因此，我們作為一家公司已經存在了 100 年。幾十年來，我們與客戶建立了這些關係。我們將繼續這樣做。份額沒有發生重大變化。但可以肯定的是，我們與客戶合作越多，度過了這些困難時期，他們就會在選擇下一個機會的人時更加謹慎。這就是我們認為最大的機會：與他們合作，他們將在機會方面繼續比其他人更頻繁地選擇我們。保羅，你想談談生長問題嗎？

Yes, quickly. The 600 basis points of outgrowth in automotive does not include the build in inventory. So the build in inventory would be incremental growth, and that occurred mostly in China and a little bit in Europe.

是的，很快。汽車產業 600 個基點的成長不包括庫存增加。因此，庫存的增加將是增量成長，這主要發生在中國，也有一點發生在歐洲。

Thanks, Shawn.

謝謝，肖恩。

And the next question comes from Deepa Raghavan with Wells Fargo.

下一個問題來自富國銀行的 Deepa Raghavan。

An automotive question for me. Jeff, can you talk through the prebuy 310 bps outperformance? That seems to indicate no more than 700,000 vehicles equal. Is that even -- is that math even right? Can you help us provide your updated [PPOE]? And relatively, I think PE indicated roughly a 3 million vehicle prebuy work. I mean, that itself is a rough estimate, by the way, but can you help bridge that difference between the 3 million versus your maybe 700,000 vehicles. And maybe is that all driven by maybe a product category of sensors or maybe your supply base being overweight in China, which itself had production hiccups in the quarter, et cetera? Anything -- any color on that is helpful.

問我一個汽車問題。 Jeff，您能談談預購 310 個基點的優異表現嗎？這似乎表明同等車輛數量不超過 70 萬輛。是這樣嗎──這個數學是正確的嗎？您能幫我們提供您更新的[PPOE]嗎？相對而言，我認為PE表示大約有300萬輛汽車的預購工作。順便說一句，我的意思是，這本身就是一個粗略的估計，但是您能否幫助彌合 300 萬輛汽車與 700,000 輛汽車之間的差異。也許這一切都是由感測器產品類別驅動的，或者可能是您在中國的供應基地超重，而中國本身在本季度出現了生產問題，等等？任何東西——任何顏色都有幫助。

Sure. Let me try to hit this high level and then if Paul, if I get anything wrong in terms of what you're seeing, please, please correct me or amplify it. So let me quantify first the magnitude of the inventory that we've observed. And so this is a little bit -- it's not precise, right, because we're looking at production levels across a wide range of mix of customers geographically and at customers. And we're comparing that actual production to what our revenue looked like, right? So we're not getting specifics associated with we've built x amount of inventory. We've forecasted that to be about $20 million to $25 million of inventory build. So not a huge amount, right, this 400 basis points in the automotive market that Paul Vasington mentioned.

當然。讓我嘗試達到這個高水平，然後如果保羅，如果我在你所看到的方面有任何錯誤，請糾正我或放大它。因此，讓我先量化我們觀察到的庫存規模。所以這有點 - 它並不精確，對吧，因為我們正在研究地理上和客戶廣泛的客戶組合的生產水平。我們正在將實際產量與我們的收入進行比較，對吧？因此，我們沒有獲得與我們已建立的庫存量相關的具體資訊。我們預計庫存建設費用約為 2000 萬至 2500 萬美元。所以保羅·瓦辛頓（Paul Vasington）提到的汽車市場 400 個基點並不是一個巨大的數字。

We've also believed that, that's largely in China. And so when you look at the content per vehicle in China, which is about half of what it is in Europe and North America, that translates to about 1 million units. But again, it may not have ended up in vehicles. It might have just been in raw material or inventory at our customers, so they could continue to be ready to expand. And so those would be my thoughts. Maybe, Paul, you could connect this to sort of what we're seeing in terms of end market inventory days in the various markets that we have across the world.

我們也相信，這主要是在中國。因此，如果你看看中國每輛車的內容量（大約是歐洲和北美的一半），那就意味著大約有 100 萬輛。但同樣，它可能不會最終出現在車輛中。它可能只是我們客戶的原材料或庫存，因此他們可以繼續準備擴張。這就是我的想法。保羅，也許您可以將其與我們在全球各個市場的終端市場庫存天數中看到的情況聯繫起來。

Yes. So Paul Chawla here. We are seeing some inventory increases in China. It is -- we -- it is on the slightly the higher side with respect to the quarterly run rate we're used to. But we do believe that will dilute over the next 6 months. North America inventory has also gone up, but it's not on the highest peak level where it's been historically at 4.1 million units. And again, that's been due to reduced mobility of consumers and sales that have slowed down in the last 6, 7 weeks. So as Jeff, I think, correctly said, our customers have been adopting mixed strategies around being ready for a comeback, not knowing exactly when that would be in place. And making sure that in case supply chain is disrupted, they had enough to start up with. And we do believe that these peaks of inventory, both at our customers in their dealerships and on the raw material side, are going to dilute back as production comes through in the next 2 quarters.

是的。保羅·喬拉（Paul Chawla）在這裡。我們看到中國的庫存增加。與我們習慣的季度運行率相比，我們的運行率略高一些。但我們確實相信這種情況將在未來 6 個月內減弱。北美庫存也有所上升，但並未達到歷史最高水準 410 萬輛。同樣，這是由於過去 6、7 週消費者流動性減少和銷售放緩所致。因此，正如傑夫所說，我認為正確的是，我們的客戶一直在為捲土重來採取混合策略，但不知道具體何時會到位。並確保在供應鏈中斷的情況下，他們有足夠的啟動資金。我們確實相信，隨著未來兩季的生產完成，我們的客戶經銷商和原材料方面的庫存高峰將被稀釋。

And the next question comes from Steven Fox with Fox Advisors.

下一個問題來自福克斯顧問公司的史蒂文·福克斯。

I just -- a little -- still a little confused by the China comments. But you've talked about sort of China returning to normal from a production standpoint. But relative to where production is, say, today or last week, what does that mean relative in terms of demand? It seems like there's a lot of inventory questions you've raised, and even though the factories can produce, it doesn't seem like they're producing a "pre-Chinese New Year normal." So if you could just sort of help us understand that a little bit.

我只是——有點——仍然對中國的評論感到有點困惑。但您談到了中國從生產角度恢復正常的情況。但相對於今天或上週的產量，這對需求而言又意味著什麼？看來你提出了很多庫存問題，儘管工廠可以生產，但他們的生產似乎不是「春節前的常態」。所以如果你能幫助我們理解一點的話。

Yes, that's a good question. So March was quite strong in China. And Paul may have the exact number in terms of -- specific to the automotive market. But we saw things come back pretty strong across all of our end markets in March. That's a very good indication in terms of where we think Q2 is going to be. Obviously, we're looking at a number of other factors in terms of customer orders there. We're looking at just the flow of people. As you know, we have significant presence, both from a manufacturing standpoint, but also from a business and engineering standpoint on the ground in China. And by no means are they back to normal, but they're certainly significantly advanced from where we are.

是的，這是一個好問題。所以三月在中國是相當強勁的。保羅可能有針對汽車市場的確切數字。但我們看到三月所有終端市場的情況都恢復得相當強勁。就我們對第二季的預期而言，這是一個非常好的跡象。顯然，我們正在考慮客戶訂單方面的許多其他因素。我們只關注人潮。如您所知，無論從製造角度還是從業務和工程角度來看，我們在中國都有著重要的影響力。他們絕不會恢復正常，但他們肯定比我們先進得多。

We're also seeing some incentives, I guess, is what you would call it, but in the form of relaxing rules around license plates and other things that are issued in major cities to incent more purchases. There is -- there are a number of other government incentives that are in the work -- works, none of which I'm aware of that has launched yet. But certainly, when they relax regulation around where vehicle license plates can be issued, you can imagine that has a pretty strong impact on the overall demand. So listen, we're not calling it out the -- out of this in China yet. But certainly, when we look at China versus other markets that we serve, it seems to be much more robust than what we're seeing. Paul or Vineet, if you have anything you'd like to add to this, please do.

我們也看到了一些激勵措施，我猜，就是你所說的，但形式是放鬆主要城市發放的車牌和其他物品的規則，以刺激更多的購買。還有許多其他政府激勵措施正在實施中，正在發揮作用，但據我所知，這些激勵措施還沒有啟動。但當然，當他們放鬆對車輛牌照發放地點的監管時，你可以想像這會對整體需求產生相當大的影響。所以聽著，我們還沒有在中國大聲疾呼。但可以肯定的是，當我們將中國與我們服務的其他市場進行比較時，它似乎比我們所看到的要強勁得多。 Paul 或 Vineet，如果您有什麼想要補充的，請儘管補充。

Just 2 points here. Yes, you're right. Retail year-over-year was down, but definitely, March was better than February. Wuhan, the dealership sales reopened. And actually, the local team is telling us there's some good sales pickup there. We're monitoring 2 factors, as Jeff said. One is the local incentives, government incentives and dealership incentives; but also a potential trend where consumers now, post-COVID, could be using less public transportation and prioritizing, again, an individual means of transportation. So those are 2 things we're watching and whether they will -- they should bring back a stronger demand over the next 3 quarters.

這裡只講2點。是的，你說得對。零售業年減，但毫無疑問，三月比二月好。武漢，經銷商銷售重新開放。事實上，當地團隊告訴我們那裡的銷售量出現了一些良好的成長。正如傑夫所說，我們正在監控兩個因素。一是地方激勵、政府激勵和經銷商激勵；但這也是一個潛在的趨勢，在新冠疫情之後，消費者可能會減少使用公共交通，並再次優先考慮個人交通方式。因此，這是我們正在關注的兩件事，以及它們是否會在未來三個季度帶來更強勁的需求。

And the next question comes from Matt Sheerin with Stifel.

下一個問題來自 Stifel 的 Matt Sheerin。

I wanted to just ask about the aerospace section. I know that's a relatively small segment for you, but you've had nice mid-single digit growth for the last few years there. And obviously, we're seeing a big impact on demand in terms of what's going on there. And your peers are also talking about really not seeing any signs of recovery anytime soon there. So could you talk about your footprint there and what you're seeing, Jeff?

我想問一下航空航天部門的情況。我知道這對你們來說是一個相對較小的細分市場，但過去幾年你們在那裡實現了中等個位數的成長。顯然，我們看到那裡發生的事情對需求產生了巨大影響。你的同行也在談論短期內確實看不到任何復甦的跡象。那麼你能談談你在那裡的足跡和你所看到的嗎，傑夫？

Yes. So again, I'll give some very high level, and then Vineet, who runs this business, can give a little bit more color. It's always great when you have a business that has an 8- or 10-year order book. But it is also an end market that's quite troubled right now. The passenger miles are weighed down in all end markets. China has recovered, again, not to keep going back to that, but China/Asia, more broadly, has recovered back to, I believe, somewhere around 50% of pre-COVID levels, whereas Europe and North America are down still very dramatically. And we're looking very closely at what the longer-term impact would be associated with where we might be able to serve this market as it comes back, enhanced environmental systems on planes and so forth, that might be opportunities. But Vineet, why don't you provide a little bit more color on in terms of the order book and what we're seeing, if you would?

是的。再說一次，我會給一些非常高的水平，然後經營這家公司的 Vineet 可以給予更多的色彩。當您的企業擁有 8 年或 10 年的訂單時，這總是很棒的。但它也是一個目前陷入困境的終端市場。所有終端市場的乘客里程都受到壓力。中國再次復甦，但不會繼續回到這種狀態，但我相信，更廣泛地說，中國/亞洲已經恢復到新冠疫情前水準的 50% 左右，而歐洲和北美的下降幅度仍然非常大。我們正在非常仔細地研究長期影響將與我們能夠在這個市場回歸時為它提供服務的地方、增強飛機上的環境系統等等相關，這可能是機會。但是 Vineet，如果您願意的話，為什麼不提供更多關於訂單簿和我們所看到的情況的資訊呢？

Sure, Jeff. This is Vineet again. So our aerospace business, we have 3 broad segments: One is commercial OEM; the second is defense and military; and the third is aftermarket and maintenance and repair operations, or MRO. Our defense and military business is actually holding up pretty well, and we're seeing pretty strong resilience in that segment. As Jeff pointed out, it's a long-cycle business from a commercial OEM standpoint. We've got a very strong order book. And we're supporting both the major airframe manufacturers and their tiers. So far, we haven't really seen a major impact to the order pattern in the commercial OEM space, other than what was already well-known around the Boeing 737 MAX challenges. And I think that's pretty public in terms of what's out there. That was already factored into our plan. We are seeing an impact to our aftermarket business as flight hours come down dramatically. There is less need for spares and maintenance. And so we're seeing an impact to our aftermarket segment. But I think broadly speaking, we continue to monitor and work very closely with our distributors in that space as well as with our tiers in the commercial OEM space to see if there are any changes to our long-term demand here.

當然，傑夫。這又是維尼特。所以我們的航空航太業務，我們有3大塊：一是商業OEM；二是商業OEM；三是商業OEM。二是國防和軍事；第三個是售後、維護和維修業務（MRO）。我們的國防和軍事業務實際上保持得很好，我們看到該領域具有相當強大的彈性。正如 Jeff 指出的那樣，從商業 OEM 的角度來看，這是一項長週期業務。我們有非常強勁的訂單。我們為主要的機身製造商及其層級提供支援。到目前為止，除了眾所周知的波音 737 MAX 挑戰之外，我們還沒有真正看到商業 OEM 領域的訂單模式受到重大影響。我認為就現有情況而言，這是相當公開的。這已經被納入我們的計劃中。隨著飛行時間大幅減少，我們的售後業務受到了影響。對備件和維護的需求較少。因此，我們看到了對我們的售後市場領域的影響。但我認為，從廣義上講，我們將繼續與該領域的經銷商以及商業 OEM 領域的各個層級密切合作，看看我們的長期需求是否有任何變化。

And the next question comes from Joe Spak with RBC Capital Markets.

下一個問題來自加拿大皇家銀行資本市場公司的 Joe Spak。

I was wondering if we could circle back to maybe some of the factors that help explain the decremental margin differential between Performance Sensing and Sensing Solutions in the quarter? Are there major differences in variable costs? Is Sensing Solutions more automated? And you also seem to be indicating that decremental margins could be worse in the second quarter. Maybe if you could give a sense of what the last 2 weeks of March looked like as a guidepost for how to think about that.

我想知道我們是否可以回過頭來看看有助於解釋本季績效感測和感測解決方案之間利潤率遞減差異的一些因素？變動成本是否存在重大差異？感測解決方案是否更加自動化？您似乎還表明，第二季的利潤率下降可能會更糟。也許您可以了解 3 月最後兩週的情況，作為如何思考這個問題的指南。

Yes. It's Jeff.

是的。是傑夫。

Yes, Let me...

是的，讓我...

Yes, go ahead.

是的，繼續吧。

No, so there are differences between Performance Sensing and Sensing Solutions. The cost structure performance is a little bit higher. The variable costs are a little bit higher. The variable costs in the [Sensing Solutions] business is lower. So the profit drop out on volume, while we're not able to try to -- I'm not able to mitigate or influence those changes has a bigger impact. And so we laid out on the slide deck, paid to try to break down whatever our variable, semi-variable and fixed costs. Our variable costs move with volume. But we also, every year, are working to take those costs out through new product designs, cost productivity initiatives, and we've been very successful in the years in the past and we'll continue to be in the future. The semi-variable piece is what we really target in terms of real productivity improvement around structural changes, and that takes time to do. It requires management to engage on productivity initiatives. And in this environment, we're struggling with being able to do that with the restrictions in terms of our operating conditions, the incremental costs that we're incurring to safeguard the employees, the disruption we're seeing in the supply chain and the duplicate salaries that we're paying when a plant or I should say the sites we're paying when the plants are closed, all those types of things are driving our costs higher and preventing our ability to drive the same level of productivity that we normally do. And that's why you're seeing the bigger drop out.

不，因此性能感測和感測解決方案之間存在差異。成本結構性能稍高一些。變動成本稍高一些。 [感測解決方案]業務的變動成本較低。因此，利潤在數量上下降，而我們無法嘗試 - 我無法減輕或影響這些變化產生更大的影響。因此，我們在幻燈片上進行了佈局，付費嘗試分解我們的可變成本、半可變成本和固定成本。我們的變動成本隨著數量的變化而變化。但我們每年都在努力透過新產品設計、成本生產力計劃來降低這些成本，我們在過去幾年中取得了非常成功的成績，並且在未來也將繼續如此。半可變部分是我們圍繞結構變化提高實際生產力的真正目標，而這需要時間來實現。它要求管理層參與生產力計劃。在這種環境下，我們正在努力做到這一點，因為我們的營運條件受到限制，我們為保護員工而產生的增量成本，我們在供應鏈中看到的中斷以及我們在工廠關閉時支付的重複工資，或者我應該說在工廠關閉時我們支付的工地的工資，所有這些類型的事情都在推高我們的成本，並阻礙我們提高正常生產力水平的能力。這就是為什麼你會看到更多的人退出。

The Sensing Solutions business also had some mixed headwinds in the quarter that we typically don't see given the significant drop out in some of the higher-margin industrial business as well as they're in our heavy vehicle business.

感測解決方案業務在本季也遇到了一些複雜的阻力，考慮到一些利潤率較高的工業業務以及我們的重型車輛業務的大幅下滑，我們通常不會看到這些阻力。

So hopefully, that explains it. We tried to lay it out in the slides, provide some greater transparency of what we're seeing in terms of the reduction in the margin rate on the volumes that were -- declines that we're seeing.

希望這能解釋它。我們試圖將其放在幻燈片中，為我們所看到的交易量的保證金率下降提供更大的透明度。

Yes, and Paul, let me add a little bit on a point that I think Joe was getting at as well around Q2. We want to align our cost structure to a more normalized run rate. I think we're hearing from every company that's reporting that Q2 is going to be a tough sweating in terms of demand profile. But I don't think anybody is forecasting that Q2 levels are long-term normalized levels. And so I think you're reading incorrectly that as we look at Q2 and as we think about ways to align the cost structure in the business, we're thinking about what the more normalized level would look like. And I don't think at this point, we're calling Q2 as a normalized level. But certainly, there is a new normal in terms of where we entered the year versus where we think we're going to end the year. But Q2 seems like it's more negative than where we would expect the balance of the year. And that's evidenced by, obviously, a lot of the third-party forecast as well.

是的，保羅，讓我補充一點我認為喬在第二季也談到的觀點。我們希望使我們的成本結構與更標準化的運行率保持一致。我認為我們從每家公司都聽說，第二季的需求狀況將是一個艱難的時期。但我認為沒有人預測第二季的水平是長期正常化程度。因此，我認為您的理解是錯誤的，當我們審視第二季度並考慮調整業務成本結構的方法時，我們正在考慮更加標準化的水平會是什麼樣子。我認為目前我們還沒有將第二季稱為標準化水準。但可以肯定的是，就我們進入這一年的情況與我們認為今年結束的情況而言，存在著一種新常態。但第二季的情況似乎比我們對今年剩餘時間的預期更為負面。顯然，許多第三方預測也證明了這一點。

The next question comes from Brian Johnson with Barclays.

下一個問題來自巴克萊銀行的布萊恩·約翰遜。

Yes, in your ongoing kind of opening, you talked about coming out stronger. Can you tell us, are you seeing any or are you thinking about, once this business stabilized, M&A opportunities, your balance sheet could [push our net leverage up], obviously, particularly that's going to deteriorate [maybe a little bit] cash deals. But you certainly have a stock that held up better than many. So is that something we should think about over the remainder of the year?

是的，在你正在進行的開場白中，你談到要變得更堅強。您能否告訴我們，您是否看到或正在考慮，一旦這項業務穩定下來，併購機會，您的資產負債表可能會[推高我們的淨槓桿率]，顯然，特別是現金交易將會惡化[也許會一點點] 。但你的股票肯定比許多股票表現得更好。那麼這是我們在今年剩餘時間應該考慮的事情嗎？

Yes, absolutely. So we're going to definitely aim to keep the pipeline full. As I think everyone knows, there's always a period of time when there's a market dislocation like this where buyer expectations align much more quickly than seller expectations. So you've got to go through an equilibrium process there that will eventually occur. But there are a number of things in the pipeline of varying sizes but

是的，絕對是。因此，我們的目標肯定是保持管道滿載。我想每個人都知道，總有一段時間會出現這樣的市場混亂，買家的期望比賣家的期望更快調整。所以你必須經歷一個最終會發生的平衡過程。但有許多不同規模的事情正在醞釀中，但是

I want to be very clear, there's nothing that's huge in our pipeline right now. That doesn't mean that we won't identify opportunities over the coming quarters where we will pursue opportunities, but the pipeline is more bite-sized

我想澄清的是，目前我們的管道中沒有什麼重大的事情。這並不意味著我們不會在未來幾季尋找機會，但管道的規模更大

bolt-on-type M&A-related activity that I think it's in our best interest to continue to pursue those to look forward to where the business is going. But at the same time, make sure that we're doing the right thing around the financial flexibility on the business. So clearly, there's been a slowdown more broadly in M&A-related activity. We are continuing to work very diligently on the pipeline, and we'll monitor it and keep you posted.

我認為繼續進行那些與業務發展方向相關的補充性併購活動符合我們的最佳利益。但同時，請確保我們圍繞業務的財務靈活性做正確的事情。很明顯，併購相關活動在更廣泛的範圍內出現了放緩。我們將繼續在管道上非常努力地工作，我們將對其進行監控並隨時向您通報最新情況。

Okay. And can you do bite-sized deals with stock?

好的。你能用股票進行小額交易嗎？

We can -- with the $1.2 billion in cash available to us, with a very strong financial position, we think that, that's the preferred currency in terms of what we would do, smaller deals. We don't see our stock at this point as being the currency that we needed to go to for deal activity.

我們可以——憑藉我們可用的 12 億美元現金，以及非常強大的財務狀況，我們認為，就我們要做的小規模交易而言，這是首選貨幣。目前我們不認為我們的股票是我們進行交易活動所需的貨幣。

And the next question comes from David Kelley with Jefferies.

下一個問題來自傑弗里斯的大衛凱利。

Just quickly, could you provide some color on your supply chain, if you're seeing any significant disruptions there and how you're navigating the volatile environment with your suppliers?

如果您發現供應鏈出現任何重大中斷，以及您如何與供應商一起應對不穩定的環境，您能否簡單介紹一下您的供應鏈？

Yes. So yes, absolutely. The supply chain has been disrupted. The team has just done an absolute fabulous job of engaging with all of our supply chain. Vineet and Paul have provided commentary in terms of how we, as suppliers, to our customers and partners, to our customers, have engaged with them. And we're doing the same thing with our suppliers. They're all dealing with the exact same issues that we are. We haven't had any significant changes in terms of our terms, so we haven't had any large suppliers that have called us looking for financial assistance. That's not to say that we won't see that. But we're going to make sure we do everything possible to maintain our very critical supply chain intact. And we've been navigating shortages of parts as we've continued our essential activity, but we've been able to manage through it quite nicely and due to a lot of work on the part of the teams around the world to make sure it happens. But there's been disruption there. And as well, and Paul mentioned, the logistics supply chain has been dramatically disrupted. A large portion of logistics transport is in the belly of passenger jets. And with that down dramatically, we've navigated that aspect of it as well as trying to shift to other modes of transportation that would be more appropriate given the circumstances.

是的。所以是的，絕對是的。供應鏈已經中斷。團隊剛剛在與我們所有供應鏈的合作方面做得非常出色。 Vineet 和 Paul 就我們作為供應商如何與我們的客戶和合作夥伴以及我們的客戶互動發表了評論。我們正在與我們的供應商做同樣的事情。他們都在處理與我們完全相同的問題。我們的條款沒有任何重大變化，因此我們沒有任何大型供應商打電話給我們尋求財務援助。這並不是說我們不會看到這種情況。但我們將確保盡一切可能保持我們非常關鍵的供應鏈完好無損。在繼續我們的基本活動的同時，我們一直在解決零件短缺的問題，但我們已經能夠很好地解決這個問題，這要歸功於世界各地的團隊所做的大量工作，以確保這一點發生。但那裡已經出現了混亂。保羅也提到，物流供應鏈也受到了極大的破壞。物流運輸很大一部分是在客機機腹內進行的。隨著這種情況的急劇下降，我們已經解決了這方面的問題，並嘗試轉向其他在這種情況下更合適的交通方式。

And the next question comes from Joe Giordano with Cowen.

下一個問題來自喬·佐丹奴和考恩。

First, I just wanted to clarify something real quick, if you could. You mentioned in the aero business, the defense, the OEM and the aftermarket. If you could just break those down into, like, how big they are relative to the total aero? And then my question is, just given the final assembly nature of a lot of your product and the variable cost nature, like what does that mean in, like, a social distancing future from here? Like is it just the manual intensity of it? How do you have to think through? Does it shift your view on, like, normalized decrementals and ability to put through capacity in the facilities?

首先，如果可以的話，我只是想快速澄清一些事情。您提到了航空業務、國防、OEM 和售後市場。如果你能把它們分解成，例如，它們相對於整個空氣動力有多大？然後我的問題是，考慮到許多產品的最終組裝性質和可變成本性質，這對遠離這裡的社會意味著什麼？就像它只是手動強度一樣嗎？又該如何思考呢？它是否會改變您對標準化減量和設施容量能力的看法？

Yes, Joe. So let me hit the second question regarding impact of social distancing on the operating model, if you will, if I've got the question right. And then I'll let Vineet give the specifics on the airline or the aerospace business.

是的，喬。那麼，如果你願意的話，如果我的問題是正確的，讓我來回答第二個問題，關於社交距離對營運模式的影響。然後我會讓 Vineet 介紹航空公司或航空航太業務的具體情況。

So it's interesting. We spent a lot of time thinking about what the impact would be more broadly on our end markets associated with this. Paul Chawla touched on the fact that if -- as things start to normalize, people will be less willing to do mass transit and so forth. We think there are instances where the trends that will continue will be beneficial to our customers and, therefore, beneficial to us.

所以這很有趣。我們花了很多時間思考這會對我們的終端市場產生更廣泛的影響。保羅·喬拉（Paul Chawla）談到了這樣一個事實：隨著事情開始正常化，人們將不太願意乘坐公共交通等。我們認為，在某些情況下，持續的趨勢將有利於我們的客戶，因此也有利於我們。

In terms of the supply chain, we've implemented a number of measures already because we've continued to operate. Much like if you think back to 9/11 and the protocols that were required to be put in place post that in terms of security checks and so forth, there are a number of protocols that have been implemented in terms of social distancing in our sites, screens being put in place, wearing of mask, temperature checks, health checks, cleanliness-related features in terms of what we're doing in our sites and people's habits regarding washing hands and so forth. I don't see those, in a meaningful way, impacting business model or cost structure. Clearly, we would have to adjust the way we do things. Shift changes will be very different when you have a large site where large numbers of people are coming in and out. But I think we'll be able to navigate those once we get to a new norm and we implement those protocols and people get accustomed to them. And I don't see it changing in a big way, some additional supplies and so forth, but nothing dramatically impacting cost structure or business model.

在供應鏈方面，因為我們還在繼續運營，所以我們已經採取了一些措施。就像回想 9/11 以及安全檢查等方面需要實施的協議一樣，我們的網站中已經實施了許多關於社交距離的協議、屏幕安裝到位、佩戴口罩、體溫檢查、健康檢查、與我們在網站上所做的事情有關的清潔相關功能以及人們的洗手習慣等。我不認為這些會以有意義的方式影響商業模式或成本結構。顯然，我們必須調整我們的做事方式。當您有一個大型站點並且有大量人員進出時，輪班變更將會非常不同。但我認為，一旦我們達到新的規範並實施這些協議並且人們習慣了它們，我們將能夠駕馭這些協議。我認為它不會發生很大的變化，一些額外的供應等等，但不會對成本結構或商業模式產生重大影響。

Vineet, do you want to touch on the breakdown of aero?

Vineet，您想談談空氣動力的細分嗎？

Sure, Jeff. Joe, and so the way to think about our business, Joe, is we're roughly 1/3, 1/3, 1/3 with commercial OEM, defense military and then our aftermarket and MRO business.

當然，傑夫。喬，喬，思考我們業務的方式是，我們大約有 1/3、1/3、1/3 是商業 OEM、國防軍事，然​​後是售後市場和 MRO 業務。

And the next question comes from Jim Suva with Citi Investment Research.

下一個問題來自花旗投資研究部的吉姆‧蘇瓦。

Jeff, I just have 1 question. Some of the OEMs have talked about working back down the supply chain to get more cost efficiencies or pressuring prices for some of their suppliers. I'm just wondering, does that reach back to Sensata a little bit? Or it's just that dollar content for automobiles and trucks and vehicles just such a small part of the bill of materials that it doesn't hit their radar screen?

傑夫，我只有 1 個問題。一些原始設備製造商已經討論了向供應鏈下游工作以提高成本效率或對某些供應商施加價格壓力。我只是想知道，這是否會影響到森薩塔？或者只是汽車、卡車和車輛的美元含量只是物料清單中的一小部分，以至於沒有出現在他們的雷達螢幕上？

Thanks, Jim. So I think folks know that our contracts with our customers often have volume-related requirements associated with those. And they also have commercial concessions that we've contracted long term. Now granted, in a very difficult environment, every company is looking for its partners to work together to figure out to get to the win-win so that we can all navigate through this. But we have historically been able to, and we would expect to continue to be able to navigate that quite well. Certainly, we've made concessions with customers in terms of getting them product when they need it based upon the disruption that they've seen in their business, working with them through that in terms of the dropout of their order rate that was within a order fence, frozen order fence that, technically, we could have contractually forced them to take the inventory, but we didn't believe that was the right long-term answer.

謝謝，吉姆。所以我認為人們知道我們與客戶的合約通常有與數量相關的要求。他們也擁有我們長期簽訂的商業特許權。現在，在一個非常困難的環境中，每家公司都在尋找合作夥伴共同努力，以實現雙贏，以便我們都能度過難關。但我們歷史上一直能夠做到這一點，並且我們希望繼續能夠很好地應對這個問題。當然，我們已經對客戶做出了讓步，根據他們在業務中看到的中斷情況，在他們需要時為他們提供產品，並與他們合作解決了訂單率下降的問題。從技術上講，我們可以透過合約強迫他們接受庫存，但我們認為這不是正確的長期答案。

But in terms of the economic arrangement we have with our customers, we haven't seen significant impact there. Historically, when we see significant volume drops, we're able to fare reasonably well from a financial standpoint in our customer contracts. Appreciate the question, Jim.

但就我們與客戶的經濟安排而言，我們還沒有看到重大影響。從歷史上看，當我們看到銷售量大幅下降時，從客戶合約的財務角度來看，我們能夠表現得相當不錯。感謝這個問題，吉姆。

Next question is a follow-up from Amit Daryanani from Evercore.

下一個問題是 Evercore 的 Amit Daryanani 的後續問題。

I guess 2 quick ones. One, everyone is really focused on the decremental margins that you guys are seeing in March quarter. Is there a way, Paul, to perhaps slice that and say, here's what it would look like if this was a normal revenue deleverage versus the incremental headwind you had from factors that you couldn't control, your restraints and controls by governments in place? I don't know if there's a way to slice those 2 numbers, then that would be great. And then maybe I missed this, but free cash flow expectations for June quarter as well.

我猜有2個快的。第一，每個人都非常關注你們在三月季度看到的利潤下降。保羅，有沒有一種方法可以對此進行剖析，並說，如果這是正常的收入去槓桿化，與你無法控制的因素、政府對你的限制和控制所帶來的增量逆風相比，情況會是這樣的？我不知道是否有辦法分割這兩個數字，那就太好了。也許我錯過了這一點，但也錯過了六月季度的自由現金流預期。

Paul, do you want to take those?

保羅，你想要那些嗎？

Yes, sure. Thanks for the question. So in the past, our dropout on volume was closer to in the 30% to 40% range depending on the different product lines in which they were moving up and down. The dropout that we're seeing now, as I mentioned earlier, is just much more dramatic given the restrictions that we're seeing in the plants, the disruptions we're seeing in the supply chain, the higher costs or elevated costs we're incurring to protect employees, to deal with disruptions to -- not the social distancing, the inability to have the plants running at the full level of capacity. And so all that is creating a whole bunch of disruption that is unusual and is driving the drop-through in our revenue decline at a bigger percent. So that's why you're seeing the significant volume profit drops and significant volume declines that would be unusual, given our past performance and experience.

是的，當然。謝謝你的提問。因此，在過去，我們的銷量下降接近 30% 到 40% 的範圍，具體取決於它們上下移動的不同產品線。正如我之前提到的，考慮到我們在工廠中看到的限制、我們在供應鏈中看到的中斷、我們看到的更高的成本或更高的成本，我們現在看到的退出更加引人注目。因此，所有這些都造成了一系列不尋常的破壞，並導致我們的收入下降幅度更大。因此，考慮到我們過去的業績和經驗，這就是為什麼您會看到銷量利潤大幅下降和銷量大幅下降，這是不尋常的。

And so as things begin to normalize, we will be able to manage those costs more effectively. We'll be able to do more structural changes when we are able to fully operate the plants and the sites as we have done historically.

因此，隨著事情開始正常化，我們將能夠更有效地管理這些成本。當我們能夠像歷史上那樣全面運作工廠和場地時，我們將能夠進行更多的結構變革。

And on the free cash flow question, we did not provide guidance on Q2 for free cash flow. But from a qualitative standpoint, the transparency around our cash structure -- or excuse me, our expense and cost structure, hopefully will be helpful there. And we have a very keen focus on making sure that we manage our working capital, and we've taken a number of steps that will reduce our cash cost to the business in terms of the furloughs and the pay cuts and so forth on the indirect side, essentially reducing that cost structure by about 15% on a net benefits basis because, obviously, when people take pay cuts, there's still the benefit side of the equation there. And so we're focused on making sure that we manage cash flow very aggressively during the second quarter, given the disruption that we're seeing.

關於自由現金流問題，我們沒有提供第二季自由現金流的指導。但從定性的角度來看，我們現金結構的透明度——或者對不起，我們的費用和成本結構，希望會有所幫助。我們非常注重確保我們管理我們的營運資金，我們已經採取了一系列措施，透過休假和減薪等間接方式降低企業的現金成本。 ，因為顯然，當人們接受減薪時，等式中仍然存在收益方面。因此，考慮到我們所看到的混亂，我們的重點是確保我們在第二季度非常積極地管理現金流。

And we also have a follow-up from Wamsi Mohan with Bank of America Merrill Lynch.

我們還有瓦姆西·莫漢 (Wamsi Mohan) 與美銀美林 (Bank of America Merrill Lynch) 的後續行動。

Just a follow-up on your comments, Jeff, on free cash flow. You noted both lower CapEx and managing working capital. Any way to give us some guide rails around those on cash conversion cycle, maybe we go through the course of the year? And also, I don't know if I missed this, but can you give us some sense of the utilization rates of your manufacturing sites? In China now, things seem to be more normalizing over there versus out of China.

傑夫，這只是您關於自由現金流的評論的後續行動。您注意到資本支出和營運資金管理均較低。有什麼辦法可以為我們提供一些有關現金轉換週期的指導方針，也許我們會經歷這一年的過程？另外，我不知道我是否錯過了這一點，但您能否讓我們了解您的生產基地的利用率？現在在中國，與中國以外的情況相比，那裡的情況似乎更加正常化。

Yes, great. So I'll hit the utilization question. And then, Paul, if you could hit the cash flow point.

是的，太好了。所以我將討論利用率問題。然後，保羅，如果你能達到現金流點。

Utilization, obviously, varies very dramatically around the different locations around the world. In China, I would say we're running at about 70%, 75% utilization. But in other locations around the world, we're running quite significantly lower than that. But I would say that in our larger sites, everything is running at about 50% or better. And then some of our smaller sites, where there hasn't been as much of a demand in Q2, we see instances where it might be a little bit lower than that. Every one of our sites is operating in some -- at some level of capacity. And again, we've been working with local governments to make sure that we run at the rate that our customers need us. So we're going to do everything we can to make sure that we deliver raw demand, and we don't see a supply chain disruption and an impact on revenue that's caused by us. Paul, do you want to hit the cash flow point?

顯然，世界各地不同地點的使用率差異很大。在中國，我想說我們的利用率約為 70%、75%。但在世界其他地方，我們的運行速度明顯低於這個數字。但我想說的是，在我們較大的站點中，一切都以大約 50% 或更好的速度運行。然後我們的一些較小的網站，在第二季度沒有那麼多的需求，我們看到它可能比這要低一點的情況。我們的每個站點都在以一定的容量等級運作。同樣，我們一直在與地方政府合作，以確保我們以客戶需要的速度運作。因此，我們將盡一切努力確保滿足原始需求，並且我們不會看到供應鏈中斷以及我們造成的收入影響。保羅，你想達到現金流點嗎？

Sure. Wamsi, the cash flow was pretty good in Q1. We talked about the $69 million of free cash flow in Q1. Conversion rate was high. It was at 83%, which is very good. So far, customers, we've been engaging with customers. They're paying on time. We haven't seen any major disruptions in terms of the collections and receipts. And so as it stands now, things feel pretty normal. I think the DSO was about -- it was the low 60s for the quarter. So things are progressing fairly normal on that front.

當然。 Wamsi，第一季的現金流相當不錯。我們討論了第一季 6900 萬美元的自由現金流。轉換率很高。達到了83%，非常好。到目前為止，客戶，我們一直在與客戶互動。他們按時付款。我們沒有看到收款和收據方面有任何重大中斷。就目前情況而言，一切都感覺很正常。我認為 DSO 大約是本季 60 多歲的低點。所以這方面的事情進展相當正常。

And as that's all the time we have for questions right now, I would like to return the floor to Jacob Sayer for any closing comments.

由於我們現在的提問時間就到此為止，因此我想將發言權交還給雅各布·塞耶（Jacob Sayer），以徵求最後的意見。

Thanks, Keith. I'd like to thank everyone for joining us this morning. Sensata will be participating in the upcoming JPMorgan TMC Investor Virtual Conference on May 13. Thank you all for joining us this morning and for your interest in Sensata. Keith, you may now end the call.

謝謝，基斯。我要感謝大家今天早上加入我們。森薩塔將參加 5 月 13 日即將舉行的摩根大通 TMC 投資者虛擬會議。基思，你現在可以結束通話了。

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

謝謝。會議現已結束。感謝您參加今天的演講。現在您可以斷開線路。