Sensata Technologies Holding PLC (ST) 2019 Q1 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Sensata Technologies Q1 2019 Earnings Call. (Operator Instructions)

早安，女士們、先生們，歡迎參加森薩塔科技 2019 年第一季財報電話會議。（操作員說明）

Please note that this event is being recorded. At this time, I would like to turn the conference over to Mr. Joshua Young, Vice President of Investor Relations. Please go ahead, sir.

請注意，該事件正在被記錄。現在，我想把會議交給投資者關係副總裁Joshua Young先生主持。請繼續，先生。

Thank you, Denise, and good morning, everybody. I'd like to welcome you to Sensata's First Quarter 2019 Earnings Conference Call. Joining me on today's call are Martha Sullivan, Sensata's CEO; and Paul Vasington, Sensata's Chief Financial Officer.

謝謝你，丹尼斯，大家早安。歡迎您參加森薩塔 2019 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) 執行長瑪莎·沙利文 (Martha Sullivan)；和保羅·瓦辛頓 (Paul Vasington)，森薩塔 (Sensata) 首席財務官。

In addition to the earnings release we issued earlier today, we will also be referencing a slide presentation during today's conference call. The PDF of this presentation can be downloaded from Sensata's Investor Relations website, and we will post a replay of today's webcast shortly at the conclusion of today's call.

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。該簡報的 PDF 版本可以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立即發布今天的網路廣播重播。

Before we begin, I'd 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 risks and uncertainties. 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，我想參考幻燈片#2 上的森薩塔安全港聲明。在本次電話會議期間，我們將對涉及風險和不確定性的未來事件或公司財務表現做出前瞻性陳述。本公司的實際結果可能與此類聲明中所述的預測有重大差異。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 results for the first quarter of 2019. We encourage you to review our GAAP financial statement in addition to today's presentation.

在幻燈片 #3 上，我們展示了森薩塔 2019 年第一季的 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。

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 the back of our webcast presentation.

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的後面。

The company provides details of its segment performance on slides 10 and 11 which are the primary measures management uses to evaluate the business.

該公司在幻燈片 10 和 11 上提供了其部門業績的詳細信息，這是管理層用來評估業務的主要指標。

Martha will begin today's call with an overall business summary. Paul will then cover our financials for the first quarter of 2019 and provide guidance for the second quarter as well as update full year 2019 guidance. We will then take your questions after our prepared remarks.

瑪莎將以整體業務摘要開始今天的電話會議。隨後，Paul 將介紹我們 2019 年第一季的財務狀況，並提供第二季的指導以及更新 2019 年全年指引。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, Martha Sullivan.

現在我想將電話轉給森薩塔的執行長瑪莎·沙利文 (Martha Sullivan)。

Thank you, Joshua, and thanks to everyone on the call for joining us this morning.

謝謝約書亞，也感謝今天早上參加我們電話會議的所有人。

We continue to significantly outgrow our end markets in the first quarter while advancing important megatrend initiatives that will benefit our long-term growth.

第一季我們的成長持續顯著超出終端市場，同時推進有利於我們長期成長的重要大趨勢舉措。

On Slide 4, I list some of the key highlights of the first quarter. For the first quarter, we reported revenues of $870.5 million, which exceeded the high end of our revenue guidance and represented organic revenue growth of approximately 1%. We delivered adjusted EPS of $0.85, which is in line with the midpoint of our guidance for the quarter.

在幻燈片 4 上，我列出了第一季的一些主要亮點。第一季度，我們報告營收為 8.705 億美元，超出了我們收入指導的上限，有機收入成長約 1%。我們的調整後每股收益為 0.85 美元，這與我們本季指引的中位數一致。

Our revenue performance reflected a meaningful decline or slowdown in most of the end markets we serve. The most notable declines in the first quarter were our China auto end market, which was down 17%, and our European auto end market, which was down 5%.

我們的收入表現反映了我們服務的大多數終端市場的顯著下降或放緩。第一季下降最顯著的是我們中國汽車終端市場，下降了17%，我們歐洲汽車終端市場下降了5%。

Despite this difficult end market environment, we continue to deliver strong secular growth. We outgrew our HVOR end market by 850 basis points, while our auto business outgrew underlying production by 490 basis points.

儘管終端市場環境困難，我們仍持續實現強勁的長期成長。我們的成長超過 HVOR 終端市場 850 個基點，而我們的汽車業務成長超過基礎生產 490 個基點。

Much of our revenue outperformance in the first quarter was driven by new products which initially have higher costs and margins that are below our company average initially. As a result of the rapid growth of these new products, our adjusted operating margins in Q1 were below our guidance. We expect that our operating margins will improve as new products scale and as new productivity initiatives gain traction during the remainder of the year and into 2020.

我們第一季的營收表現在很大程度上是由新產品推動的，這些新產品最初的成本和利潤率都低於我們公司的平均值。由於這些新產品的快速成長，我們第一季調整後的營業利潤率低於我們的指引。我們預計，隨著新產品的規模擴大和新的生產力計劃在今年剩餘時間和 2020 年獲得牽引力，我們的營業利潤率將會提高。

Next, we closed 2 important agreements for our Electrification and Smart & Connected megatrend initiatives. In Electrification, we signed an agreement with a large Chinese auto manufacturer to develop our Wireless Battery Management solution. In Smart & Connected, a major global truck OEM has selected Sensata as the supplier of a Wireless Gateway solution to establish a vehicle area network on their trucks. These are important milestones for Sensata, and I will talk in more detail about the potential of these initiatives later in the call.

接下來，我們就電氣化和智慧互聯大趨勢計畫達成了兩項重要協議。在電氣化領域，我們與一家大型中國汽車製造商簽署了協議，開發我們的無線電池管理解決方案。在智慧互聯領域，一家全球主要卡車 OEM 選擇森薩塔作為無線網關解決方案的供應商，以在其卡車上建立車域網路。這些是森薩塔的重要里程碑，我將在稍後的電話會議中更詳細地討論這些舉措的潛力。

Finally, we continue to be active buyers of Sensata stock. We repurchased $150 million of Sensata shares in the first quarter of 2019. Over the past 10 months, we have repurchased $550 million of our shares, reflecting our belief that repurchasing our stock is an attractive use of our capital to create long-term returns.

最後，我們仍然是森薩塔股票的積極買家。我們在 2019 年第一季回購了 1.5 億美元的森薩塔股票。在過去的 10 個月裡，我們回購了價值 5.5 億美元的股票，這反映出我們相信回購股票是利用我們的資本創造長期回報的一種有吸引力的方式。

Slide 5 shows organic revenue growth by end market in the first quarter. I'll begin with HVOR, which posted 11% organic revenue growth. This was 850 basis points above market growth of 2.5% in the first quarter. Our North American on-road truck and agricultural businesses both delivered healthy, double-digit organic revenue growth in the quarter. While we continue to post good organic revenue growth in HVOR, we believe that the HVOR end market will decline close to 2%, which is at the high end of our previous guidance for the market to decline 1% to 2%.

幻燈片 5 顯示了第一季終端市場的有機收入成長。我將從 HVOR 開始，該公司的有機收入成長了 11%。這比第一季 2.5% 的市場成長率高出 850 個基點。我們的北美公路卡車和農業業務本季均實現了兩位數的有機收入健康成長。雖然我們繼續實現 HVOR 的有機收入成長，但我們認為 HVOR 終端市場將下降近 2%，這是我們先前預測的市場下降 1% 至 2% 的上限。

A key highlight in the quarter is that we secured an agreement for GIGAVAC's high-voltage contactors to be used in the production of electric buses in Europe. These buses are part of the Paris public transport's effort to reduce emissions in the city. This win positions us well to continue to grow in the electric bus market in Europe and is a great example of how Electrification is driving our business outside of auto.

本季度的一個重要亮點是我們與 GIGAVAC 的高壓接觸器達成了一項協議，該協議將用於在歐洲生產電動公車。這些巴士是巴黎公共交通減少城市排放努力的一部分。這場勝利使我們能夠在歐洲電動巴士市場繼續發展，也是電氣化如何推動我們汽車以外業務的一個很好的例子。

Next, our automotive business posted an organic revenue decline of 1.1%, which was 490 basis points above end market production, which declined 6% in the first quarter. Solid overall content growth offset meaningful end market declines in Europe and China.

接下來，我們的汽車業務有機收入下降 1.1%，比第一季下降 6% 的終端市場產量高出 490 個基點。整體內容的穩健成長抵消了歐洲和中國終端市場的大幅下滑。

From a geographic perspective, our European auto business posted a solid quarter of content growth in the face of a weaker-than-expected market. As we look ahead for the remainder of 2019, we expect global automotive production to be weaker than our previous guidance as a result of incremental end market weakness in Europe and China.

從地理角度來看，儘管市場弱於預期，我們的歐洲汽車業務在季度內實現了穩定的內容成長。展望 2019 年剩餘時間，我們預計，由於歐洲和中國終端市場的疲軟，全球汽車產量將弱於我們先前的指引。

Finally, I want to turn to industrial, aerospace and other end markets, which are served by our Sensing Solutions segment. For the first quarter of 2019, we posted a 1% organic revenue decline due to weak demand for our control products sold into industrial customers, particularly in China. This was partially offset by growth in our aerospace business and growth for our sensor products sold into industrial customers. In addition to weakness in China, lower housing starts in North America, a sharp decline in European PMI, particularly in Germany, and a softer semiconductor market are all pressuring growth in Sensing Solutions. As a result of a weakening market, we expect Sensing Solutions will report flat organic revenue growth for the full year compared to our previous expectations for low, single-digit organic growth.

最後，我想談談工業、航空航太和其他終端市場，這些市場由我們的感測解決方案部門提供服務。2019 年第一季度，由於工業客戶（尤其是中國客戶）銷售的控制產品需求疲軟，我們的有機收入下降了 1%。這部分被我們的航空航太業務的成長和向工業客戶銷售的感測器產品的成長所抵消。除了中國的疲軟之外，北美新屋開工率下降、歐洲採購經理人指數急劇下降（尤其是德國）以及半導體市場疲軟都對感測解決方案的成長構成壓力。由於市場疲軟，我們預期感測解決方案全年有機收入成長將持平，而我們先前預期的為低個位數有機成長。

Despite challenging end markets, we continue to make significant progress in advancing our megatrend initiatives and investing for future growth.

儘管終端市場面臨挑戰，但我們在推動大趨勢計劃和投資未來成長方面繼續取得重大進展。

On Slide 6, I show some of this progress for our Electrification and Smart & Connected megatrends. I'm going to start with an update in Electrification for our Wireless Battery Management solution, or BMS, which we first introduced to you at our Investor Day.

在投影片 6 中，我展示了電氣化和智慧互聯大趨勢的一些進展。我將首先介紹我們的無線電池管理解決方案（BMS）的電氣化更新，我們在投資者日首次向您介紹了解決方案。

BMS has the potential to help electric vehicle manufacturers increase the range and safety of electric vehicles. We are working with customers to improve battery pack energy density, increase reliability and reduce the design and manufacturing costs of battery electric vehicles. As a result of this compelling value proposition, we believe our BMS solution has the potential to add a few hundred dollars of content per electric vehicle for Sensata.

BMS 有潛力幫助電動車製造商提高電動車的續航里程和安全性。我們正在與客戶合作，提高電池組能量密度、提高可靠性並降低純電動車的設計和製造成本。由於這一引人注目的價值主張，我們相信我們的 BMS 解決方案有潛力為森薩塔的每輛電動車增加數百美元的內容。

During the first quarter, we signed an agreement with [S Volt Energy Technology Company], part of the Great Wall Motor group in China, to further develop and commercialize our wireless BMS technology. This is an important validation of our technology and the value customers see in the solution. Longer term, we believe that wireless BMS represents a $2.5 billion market opportunity for Sensata, and we anticipate an acceleration of new business wins in 2020. We expect to generate our first revenues from BMS sometime in the next 3 years. In addition to S Volt, we will continue to work broadly with other auto OEMs and other battery pack makers who are also interested in using wireless BMS with their battery pack platforms.

第一季度，我們與中國長城汽車集團旗下的[S Volt Energy Technology Company]簽署了一項協議，以進一步開發和商業化我們的無線BMS技術。這是對我們的技術以及客戶在解決方案中看到的價值的重要驗證。從長遠來看，我們認為無線 BMS 為森薩塔帶來了 25 億美元的市場機會，我們預計 2020 年新業務的成長將加速。我們預計在未來 3 年內從 BMS 獲得第一筆收入。除了 S Volt 之外，我們將繼續與其他汽車原始設備製造商和其他電池組製造商廣泛合作，他們也有興趣在其電池組平台上使用無線 BMS。

During the quarter, we also received an award from the Electric Vehicle Forum (sic) [New Energy Vehicle Forum] in China as one of the top component suppliers for charging stations. This award relates to our GIGAVAC high-voltage contactors, and we believe we can be a significant player in the charging station market.

本季度，我們也獲得中國電動車論壇（原文如此）[新能源汽車論壇]頒發的充電站頂級零件供應商之一的獎項。該獎項涉及我們的 GIGAVAC 高壓接觸器，我們相信我們可以成為充電站市場的重要參與者。

One of the key value drivers of the GIGAVAC acquisition was based on our ability to further scale their high-voltage contactors in the auto industry. Historically, GIGAVAC's presence in auto was small due to their lack of global scale and infrastructure. And in the short time since we closed the deal, we are already seeing that value potential reflected in the rapid growth of our sales pipeline. The strong, positive response from our customer base has already resulted in a sales pipeline that is $300 million in automotive alone. This speaks to the tremendous potential that Sensata has in Electrification.

收購 GIGAVAC 的關鍵價值驅動因素之一是我們有能力進一步擴大其在汽車產業的高壓接觸器的規模。從歷史上看，由於缺乏全球規模和基礎設施，GIGAVAC 在汽車領域的影響力很小。在我們完成交易後的短時間內，我們已經看到價值潛力反映在我們銷售管道的快速成長中。我們的客戶群做出了強烈而積極的反應，光是汽車領域的銷售管道就已達到 3 億美元。這說明了森薩塔在電氣化領域的巨大潛力。

Turning to our HVOR business. We recently delivered a major milestone for our Smart & Connected megatrend. Sensata is the largest supplier of wireless sensors in the transportation market. We are leveraging the strong position in tire pressure monitoring systems to bring an integrated solution to the market that creates digital insights for commercial on-road trucks and trailers. When combined with various wireless sensors, our Wireless Gateway will enable fleet operators to better manage the condition of their trucks and trailers, increase utilization and safety and uptime for their fleet.

轉向我們的 HVOR 業務。最近，我們為智慧互聯大趨勢實現了一個重要里程碑。森薩塔是交通運輸市場最大的無線感測器供應商。我們利用在輪胎壓力監測系統領域的強大地位，向市場推出整合解決方案，為商用公路卡車和拖車創建數位洞察。當與各種無線感測器結合使用時，我們的無線網關將使車隊營運商能夠更好地管理卡車和拖車的狀況，提高車隊的利用率、安全性和正常運行時間。

A major global truck OEM has selected Sensata as their supplier of the Wireless Gateway to establish a vehicle area network, which includes a truck-to-trailer link and the ability to host both Sensata and third-party sensor applications. This win provides Sensata with first-to-market advantage to drive the vehicle area network standard for connecting trucks and trailers and also positions our Wireless Gateway as a platform for managing wireless sensors that deliver actionable insights for fleet operators. This solution has tremendous value for the industry, and we believe Wireless Gateway will be added to most new trucks produced by this leading OEM in just a few years' time.

一家主要的全球卡車 OEM 已選擇森薩塔作為其無線網關供應商，以建立車輛區域網，其中包括卡車到拖車的鏈路以及託管森薩塔和第三方感測器應用程式的能力。這場勝利為森薩塔提供了率先進入市場的優勢，以推動連接卡車和拖車的車輛區域網路標準，並將我們的無線網關定位為管理無線感測器的平台，為車隊營運商提供可操作的見解。該解決方案對該行業具有巨大價值，我們相信無線網關將在短短幾年內被添加到這家領先的 OEM 生產的大多數新卡車中。

In addition to new trucks, we believe that the Wireless Gateway will be retrofitted to trucks and trailers already on the market. Combined, the OEM and retrofit market create a large $7 billion market opportunity for Sensata to pursue, and we are excited about the potential for this market to drive our long-term growth.

除了新卡車之外，我們相信無線網關也將被改裝到市場上已有的卡車和拖車上。OEM 和改裝市場相結合，為森薩塔創造了 70 億美元的巨大市場機會，我們對該市場推動我們長期成長的潛力感到興奮。

On Slide 7, I show more details about our outgrowth in HVOR. Over the past 8 quarters, we have averaged 880 basis points of outgrowth in our HVOR business compared to end market production. And while the HVOR end market growth slowed in the first quarter of 2019 compared to full year 2018, we are still delivering double-digit organic revenue growth in the first quarter due to the strong underlying content growth in the business.

在幻燈片 7 上，我展示了有關我們 HVOR 發展的更多詳細資訊。在過去 8 個季度中，與終端市場產量相比，我們的 HVOR 業務平均成長了 880 個基點。儘管與 2018 年全年相比，2019 年第一季 HVOR 終端市場成長放緩，但由於業務基礎內容成長強勁，我們在第一季仍實現了兩位數的有機收入成長。

While the level of our outgrowth can vary quarter-to-quarter, this slide demonstrates that we have sustained attractive secular growth over the past 2 years, and our content growth will help to offset any future slowdown of end market production.

雖然我們的成長水平可能會因季度而異，但這張投影片表明我們在過去兩年中持續保持了有吸引力的長期成長，並且我們的內容成長將有助於抵消終端市場生產未來的任何放緩。

The drivers of the strong content performance have included the electrification of cabins in off-road equipment, which relates to our operator sensing technologies; the need for cleaner and more efficient powertrains, much of which is being driven by legislation; and the electrification of medium-duty trucks and buses. A few years ago, we made the strategic decision to invest in the attractive opportunities offered by the HVOR market, and this investment is paying off with the strong content gains we show on the slide.

內容表現強勁的驅動因素包括越野設備駕駛室的電氣化，這與我們的操作員感測技術有關；對更清潔、更有效率的動力系統的需求，其中大部分是由立法推動的；以及中型卡車和巴士的電氣化。幾年前，我們做出了投資 HVOR 市場提供的有吸引力的機會的策略決策，這項投資正在得到回報，我們在幻燈片中展示了強勁的內容收益。

On Slide 8, I show our key priorities for the remainder of 2019. First, we will continue to execute our secular growth opportunities and outgrow our end markets. At our Investor Day, we committed for our automotive business to outgrow its end market by 400 to 500 basis points, and we are delivering on that promise.

在投影片 8 中，我展示了 2019 年剩餘時間的主要優先事項。首先，我們將繼續抓住長期成長機會並超越我們的終端市場。在投資者日，我們承諾汽車業務的成長將超過終端市場 400 至 500 個基點，我們正在兌現這項承諾。

Second, we are aligning our cost base with the lower volumes we are seeing in the business and executing initiatives to further streamline our operations.

其次，我們正在根據業務量的減少調整我們的成本基礎，並執行措施以進一步簡化我們的營運。

Finally, we will continue to actively deploy capital towards M&A and share repurchases. We are off to a great start with GIGAVAC, and we believe buying back our stock will provide a good long-term return for our shareholders.

最後，我們將繼續積極配置資本進行併購和股票回購。我們與 GIGAVAC 有了一個良好的開端，我們相信回購我們的股票將為我們的股東提供良好的長期回報。

I'd now like to turn the call over to Paul to review our first quarter results in more detail and to provide financial guidance for the second quarter and an update guidance for the full year 2019. Paul?

我現在想將電話轉給 Paul，以更詳細地審查我們第一季的業績，並提供第二季的財務指導和 2019 年全年的更新指導。保羅？

Thank you, Martha. Key highlights for the first quarter, as shown on Slide 9, include revenue of $870.5 million in the quarter, a decrease of 1.8% from the first quarter of 2018. Changes in foreign currency exchange rates decreased revenues by 1.2%. The net effect of our valves divestiture and the acquisition of GIGAVAC decreased revenues by 1.4%. The net result was 0.8% organic revenue growth in the quarter.

謝謝你，瑪莎。如投影片 9 所示，第一季的主要亮點包括該季度營收為 8.705 億美元，較 2018 年第一季下降 1.8%。外幣匯率變動使收入減少 1.2%。我們的閥門剝離和收購 GIGAVAC 的淨影響使收入下降了 1.4%。本季的最終結果是有機收入成長 0.8%。

Adjusted operating income was $188.6 million in the quarter and declined 3.2% compared to the first quarter of 2018 or a decrease of 5% on a constant currency basis due to the effects of customer price changes that occurred at the beginning of the year, the net effect of acquisitions and divestitures and new product launches. This was partially offset by lower operating expenses.

本季調整後營業收入為 1.886 億美元，較 2018 年第一季度下降 3.2%，由於年初發生的客戶價格變化的影響，按固定匯率計算下降 5%。這被較低的營運費用部分抵消。

Adjusted net income was $139.3 million in the quarter and declined 5.2% compared to the first quarter of 2018.

該季度調整後淨利潤為 1.393 億美元，較 2018 年第一季下降 5.2%。

Adjusted EPS was $0.85 in the first quarter, flat compared to the prior year quarter, which reflects a $0.04 decline in operational performance, a $0.03 decline from the net effect of acquisitions and divestitures, a $0.03 increase from foreign currency and a $0.04 increase from share repurchases.

第一季調整後每股收益為 0.85 美元，與去年同期持平，反映出營運業績下降 0.04 美元、收購和資產剝離淨效應下降 0.03 美元、外匯增加 0.03 美元以及份額增加 0.04 美元回購。

Now I'd like to comment on our 2 business segments in the first quarter of 2019. I will start with Performance Sensing on Slide 10.

現在我想談談我們2019年第一季的兩個業務部門。我將從幻燈片 10 上的效能感知開始。

Our Performance Sensing business reported revenues of $640 million for the first quarter, a decrease of 3.4% compared to the same quarter last year, reflecting both the negative impact from foreign exchange of 1.2% and the net effect of acquisitions and divestitures which reduced revenue by 3.6%. Excluding these factors, we generated 1.4% organic revenue growth in the first quarter compared to the same period last year.

我們的績效感測業務第一季營收為 6.4 億美元，比去年同期下降 3.4%，這不僅反映了匯率 1.2% 的負面影響，也反映了收購和資產剝離的淨影響，導致收入減少3.6%。排除這些因素，我們第一季的有機收入與去年同期相比成長了 1.4%。

The heavy vehicle and off-road business, which reported organic revenue growth of 11% in the first quarter, once again had the strongest revenue growth in this segment and outpaced its every end market by 850 basis points due to the strong underlying content growth in the business.

重型車輛和越野業務第一季的有機收入增長了11%，由於基礎內容的強勁增長，該業務再次實現了該細分市場中最強勁的收入增長，並且比每個終端市場高出850 個基點。

Our automotive business reported an organic revenue decline of 1.1% in the first quarter but outpaced the end market by 490 basis points. Our automotive performance was in line with expectations as the markets in China and Europe remain weak.

我們的汽車業務第一季有機收入下降 1.1%，但比終端市場高出 490 個基點。由於中國和歐洲市場依然疲軟，我們的汽車業績符合預期。

Looking ahead, we expect global automotive production to be down about 3% to 4% for the year compared to our previous guidance for the auto end market to be down 1% to 2%.

展望未來，我們預計今年全球汽車產量將下降約 3% 至 4%，而我們先前對汽車終端市場的指導為下降 1% 至 2%。

Performance Sensing profit was $150.5 million, a decline of 11.2% as compared to the same quarter last year. Excluding the impact of foreign currency, Performance Sensing profit as a percentage of revenue was 22.4% in the first quarter, a decline of 320 basis points from the same quarter last year. The decline in segment operating income was primarily driven by customer price changes that go into effect at the beginning of the year, the divestiture of our valves business last year, new product launches and higher R&D investment related to emerging megatrends.

Performance Sensing 利潤為 1.505 億美元，比去年同期下降 11.2%。剔除匯率影響，第一季Performance Sensing獲利佔營收比例為22.4%，較去年同季下降320個基點。部門營業收入下降的主要原因是年初生效的客戶價格變化、去年閥門業務的剝離、新產品的推出以及與新興大趨勢相關的更高的研發投資。

As shown on Slide 11, Sensing Solutions reported revenue of $230.5 million in the first quarter, an increase of 3.1% as compared to the same quarter last year. On an organic basis, factoring in a negative impact from foreign exchange rates of 0.9% and a positive contribution from the acquisition of GIGAVAC of 4.9%, we reported an organic revenue decline of 0.9%. This decline was primarily due to a slowdown in global industrial demand, particularly in China. This was partially offset by growth in aerospace and from our sensing products sold into the industrial markets, such as HVAC, that benefit from increasing content growth.

如投影片 11 所示，Sensing Solutions 第一季營收為 2.305 億美元，比去年同期成長 3.1%。在有機基礎上，考慮到匯率 0.9% 的負面影響以及收購 GIGAVAC 4.9% 的正面貢獻，我們報告有機收入下降了 0.9%。這一下降主要是由於全球工業需求放緩，特別是中國。這部分被航空航太領域的成長以及我們銷往暖通空調等工業市場的感測產品所抵消，這些市場受益於內容的不斷成長。

Sensing Solutions profit was $75 million in the first quarter, an increase of 4.3% from the same quarter last year. Excluding the impact of foreign currency, Sensing Solutions profit as a percent of revenue was 33.6% in the first quarter, up 140 basis points when compared to the prior year due to strong productivity gains.

感測解決方案第一季獲利為7,500萬美元，比去年同季成長4.3%。排除外匯影響，感測解決方案第一季獲利佔營收的百分比為33.6%，由於生產力的強勁成長，較上年同期成長140個基點。

Corporate and other costs not included in segment operating income were $41.4 million in the first quarter, down approximately $13.4 million year-over-year due primarily to lower variable compensation expense and cost controls and onetime costs included in the prior year related to our successful efforts to redomicile to the U.K.

第一季未計入分部營業收入的公司和其他成本為4,140 萬美元，年減約1,340 萬美元，這主要是由於可變薪酬費用和成本控制以及上一年與我們的成功努力相關的一次性成本減少遷居至英國

Excluding charges added back to our non-GAAP results, corporate and other costs were $34.6 million in the first quarter of 2019.

不包括計入非 GAAP 業績的費用，2019 年第一季的公司成本和其他成本為 3,460 萬美元。

Slide 12 shows Sensata's first quarter 2019 non-GAAP results. Adjusted gross profit declined 4.9% year-over-year to $294.5 million primarily due to the net effect from acquisitions and divestitures, customer price changes that take effect at the beginning of the year and new product launches.

幻燈片 12 顯示了森薩塔 2019 年第一季非 GAAP 業績。調整後毛利年減 4.9% 至 2.945 億美元，主要是由於收購和剝離、年初生效的客戶價格變化以及新產品推出的淨影響。

R&D costs were favorable year-over-year primarily due to foreign currency.

研發成本年比有利，主要是由於外匯的影響。

SG&A costs were $8 million favorable year-over-year primarily as a result of lower variable compensation costs, productivity improvements and a positive effect from foreign currency.

SG&A 成本較去年同期有利 800 萬美元，主要是由於可變薪酬成本降低、生產力提高以及外匯的正面影響。

As a result, adjusted operating income was down 3.2% compared to the prior year quarter.

因此，調整後營業收入與去年同期相比下降了 3.2%。

Finally, adjusted EPS was flat as compared to the first quarter of 2018, including the benefit of share repurchases.

最後，調整後每股盈餘與 2018 年第一季持平，其中包括股票回購的收益。

As we've communicated previously, we have transitioned to showing our cash tax rate as a percent of adjusted profit before tax as compared to our previous practice of showing our cash tax rate as a percent of adjusted EBIT. For comparison purposes, we show our cash tax rate based on our old methodology in the footnote below our P&L.

正如我們之前所傳達的，我們已經轉變為將現金稅率顯示為調整後稅前利潤的百分比，而之前的做法是將現金稅率顯示為調整後息稅前利潤的百分比。出於比較目的，我們在損益表下方的腳註中顯示了基於舊方法的現金稅率。

Our cash tax rate was up year-over-year but in line with our guidance for the first quarter of 2019.

我們的現金稅率同比上漲，但與我們 2019 年第一季的指引一致。

Now let me turn to our guidance for the full year 2019 shown on Slide 13. At the midpoint of our new guidance, we are reducing net -- we're reducing our revenue guidance by $40 million for the full year 2019 compared to our previous expectations.

現在讓我談談幻燈片 13 所示的 2019 年全年指引。在我們新指導的中點，我們正在減少淨收入——與我們先前的預期相比，我們將 2019 年全年的收入指導減少了 4000 萬美元。

We expect automotive end market production to decline 3% to 4% compared to our previous expectation for the automotive end market to decline 1% to 2%. The lower outlook in auto is driven by weaker-than-expected end markets in Europe and China.

我們預計汽車終端市場產量將下降 3% 至 4%，而此前我們預計汽車終端市場產量將下降 1% 至 2%。汽車產業前景下調是由於歐洲和中國終端市場弱於預期所造成的。

We expect the HVOR end market to decline 2%, at the high end of our previous guidance of a 1% to 2% decline.

我們預計 HVOR 終端市場將下降 2%，處於我們先前指導的 1% 至 2% 下降的上限。

We also expect weaker production in our industrial end market, particularly in China.

我們也預期工業終端市場的生產將會疲軟，特別是在中國。

As a result, we expect revenue between $3.54 billion to $3.64 billion for the full year 2019, representing growth of 1% to 3%. We expect foreign currency exchange rates to decrease revenues by 0% to 1%. And the net effect of our acquisition of GIGAVAC and our divestiture of valve will reduce revenues by approximately $6 million. We expect organic revenue growth between 1% and 4% for the full year. We expect adjusted operating income between $846 million and $874 million, which would represent growth of 2% to 5% (corrected by company after the call).

因此，我們預計 2019 年全年營收將在 35.4 億美元至 36.4 億美元之間，成長 1% 至 3%。我們預計外幣匯率將使收入減少 0% 至 1%。我們收購 GIGAVAC 和剝離閥門的淨效應將導致收入減少約 600 萬美元。我們預計全年有機收入將成長在 1% 至 4% 之間。我們預計調整後的營業收入將在 8.46 億美元至 8.74 億美元之間，這意味著成長 2% 至 5%（由公司在電話會議後修正）。

On the bottom line, we expect adjusted net income between $632 million and $658 million and adjusted earnings per share between $3.87 and $4.03 for the full year 2019, which would represent growth between 6% and 10%.

整體而言，我們預計2019 年全年調整後淨利將在6.32 億美元至6.58 億美元之間，調整後每股盈餘將在3.87 美元至4.03 美元之間，成長將在6% 至10% 之間。

We expect to generate free cash flow of approximately $510 million to $550 million. This free cash flow guidance assumes annual capital expenditures of approximately $155 million to $175 million for the full year 2019, which is $10 million lower at the midpoint than we previously guided.

我們預計將產生約 5.1 億至 5.5 億美元的自由現金流。這項自由現金流指引假設 2019 年全年的年度資本支出約為 1.55 億至 1.75 億美元，比我們先前指引中位數的低 1,000 萬美元。

On Slide 14, I show our financial guidance for the second quarter of 2019. Overall, we expect to report revenues between $890 million and $914 million, representing a reported revenue decline of 3% to flat growth.

在投影片 14 上，我展示了我們 2019 年第二季的財務指引。總體而言，我們預計報告營收在 8.9 億美元至 9.14 億美元之間，報告營收下降 3% 至持平成長。

At the midpoint of our guidance, we expect that foreign exchange rates will reduce revenues year-over-year by approximately $9 million in the second quarter of 2019. And the net effect of acquisitions and divestitures will reduce -- further reduce net revenues by approximately $6 million.

在我們指導的中點，我們預計外匯匯率將使 2019 年第二季的營收將年減約 900 萬美元。收購和剝離的淨效應將會減少——進一步減少約 600 萬美元的淨收入。

Excluding the impact of foreign exchange and the net effect of acquisitions and divestitures, we expect to report organic revenues between a decline of 1% and growth of 2% in the second quarter.

排除外匯影響以及收購和剝離的淨影響，我們預計第二季有機收入將下降 1% 至成長 2%。

Our current fill rate is approximately 88% of the revenue guidance midpoint for the second quarter.

我們目前的填充率約為第二季營收指引中位數的 88%。

We expect to report adjusted operating income between $205 million and $211 million.

我們預計調整後的營業收入將在 2.05 億美元至 2.11 億美元之間。

On the bottom line, we expect to report adjusted net income between $150 million and $156 million, which would represent a decline of 5% at the midpoint of our guidance.

總而言之，我們預計調整後淨利潤將在 1.5 億美元至 1.56 億美元之間，這意味著我們的指導中位數將下降 5%。

We expect to report adjusted EPS between $0.92 and $0.96, which would represent a decline of 1% to growth of 3%.

我們預計調整後每股收益將在 0.92 美元至 0.96 美元之間，這意味著下降 1% 到增長 3%。

So I'd like to conclude my comments with the following key points. Sensata is delivering strong secular growth despite a meaningful decline in most of our end markets. And while we expect underlying production in our end markets to be weaker than previously expected for the balance of 2019, we expect to deliver another strong year of margin expansion and solid adjusted EPS growth. We're executing initiatives to drive greater productivity and align our costs to the lower market demand we are experiencing. Finally, in terms of capital deployment, we will continue to take a balanced, returns-driven approach to create the most value for our shareholders.

因此，我想透過以下要點來結束我的評論。儘管大多數終端市場大幅下滑，森薩塔仍實現了強勁的長期成長。儘管我們預計 2019 年剩餘時間終端市場的基本產量將弱於先前的預期，但我們預計將迎來又一個強勁的利潤擴張年和穩健的調整後每股收益成長。我們正在執行各種措施來提高生產力，並使我們的成本適應我們正在經歷的較低的市場需求。最後，在資本配置方面，我們將持續採取均衡、回報驅動的方式，為股東創造最大價值。

Now I'd like to turn the call back over to Joshua.

現在我想把電話轉回約書亞。

Thank you. Denise, please assemble the Q&A roster.

謝謝。丹尼斯，請整理問答名單。

(Operator Instructions) The first question will be from Wamsi Mohan of Bank of America Merrill Lynch.

（操作員說明） 第一個問題將由美銀美林的 Wamsi Mohan 提出。

Sorry if there's some background noise here at the airport this morning. Martha and Paul, it's nice to see the free cash flow performance here largely unchanged here despite this significant deterioration in the end market. So great job on that. So clearly, China is weak in 1Q. But Martha, can you give us some sense of whether you saw any incremental improvement over the course of this past quarter that things get better or -- in March at all? And so far this month, is the stimulus helping at all? Any color there would be helpful. And I have a quick follow-up.

抱歉，如果今天早上機場有一些背景噪音。瑪莎和保羅，很高興看到這裡的自由現金流表現基本沒有變化，儘管終端市場顯著惡化。這方面做得非常好。很明顯，中國第一季表現疲軟。但是瑪莎，您能否告訴我們，在過去的一個季度中，您是否看到了任何漸進式的改善，即情況有所好轉，或者在三月？本月到目前為止，刺激措施有幫助嗎？任何顏色都會有幫助。我有一個快速的跟進。

Sure, Wamsi. And thanks for the observation on the cash flow. We've seen a number of elements of working capital improve.

當然，瓦姆西。感謝您對現金流的觀察。我們已經看到營運資金的許多要素得到改善。

Relative to the end markets, let me just make it really clear that I -- if we had to look at one end market that's probably changed our perspective going forward from prior call, it would be Europe, particularly Europe auto.

相對於終端市場，讓我明確表示，如果我們必須考慮一個終端市場，這可能會改變我們對先前電話會議的看法，那將是歐洲，特別是歐洲汽車市場。

But turning back to China. The leading indicator that we are watching really carefully is overall inventories. And so while we recognized an improved end demand rate in March, incrementally improved, we look at that overall inventory where it's sitting at about 4.6 months, which is very high for China. In our view of end market, our production rates because that's what impacts our overall revenue, Wamsi. So that's a -- that 4.6 sitting where they're sitting today has us incrementally and I'd say marginally worse than China. It's not a huge overall correction, but something that we continue to watch really closely.

但回到中國。我們正在仔細觀察的領先指標是整體庫存。因此，雖然我們認識到 3 月份終端需求率有所改善，而且是逐步改善，但我們看到整體庫存約為 4.6 個月，這對中國來說非常高。在我們對終端市場的看法中，我們的生產力是影響我們整體收入的因素，Wamsi。因此，他們今天所處的位置是 4.6，我們正在逐步進步，我想說比中國略差。這並不是一次巨大的整體調整，但我們將繼續密切關注。

Okay. That's helpful. And as you look at sort of the macro environment, clearly the 2-point worse auto assumption that you have made over here, do you think that, that's sort of the worst of it? I know it's hard to handicap sort of this early on in the year. But as we think about our models and about the risk that's embedded or captured within your assumptions, would you say that the potential for this number to down-take as we go through the course of the year is relatively low given sort of the very weak fourth quarter of last year and first quarter of this year?

好的。這很有幫助。當你觀察某種宏觀環境時，顯然你在這裡所做的 2 點更差的汽車假設，你認為這是最糟糕的嗎？我知道在今年年初很難阻止這種情況。但是，當我們思考我們的模型以及您的假設中嵌入或捕獲的風險時，您是否會說，鑑於經濟非常疲軟，在我們經歷這一年的過程中，這個數字下降的可能性相對較低去年第四季和今年第一季？

Sure. What we try to do in providing guidance and an outlook is to look at a realistic base case. Having said that, I would say we recognize that with down markets, there is more -- there is momentum, and we followed that momentum into the guide. But I would be -- I think it's important to recognize we're trying to be as middle-of-the-road in our outlook and our guide using just objective analytics. So I think things could get better if the overall China incentives are more impactful. There's no question that when markets are volatile, they can also go the other way. So just trying to be very balanced in our overall perspective.

當然。我們在提供指導和展望時試圖做的是著眼於現實的基本案例。話雖如此，我想說的是，我們認識到，在市場低迷的情況下，還有更多的動力，我們在指南中遵循了這種動力。但我認為，重要的是要認識到我們正努力在我們的前景和指南中僅使用客觀分析來走中間道路。因此，我認為如果中國的整體激勵措施更具影響力，情況可能會變得更好。毫無疑問，當市場波動時，它們也可能走向相反的方向。因此，我們只是試圖在整體角度上保持平衡。

The next question will be from Deepa Raghavan of Wells Fargo.

下一個問題將由富國銀行的迪帕·拉格萬 (Deepa Raghavan) 提出。

Martha, I had 2 questions to you. Any update on your underlying European production, I mean, especially as it fits to your 1% to 4% core revenue growth? What's the underlying production assumption at the low end and high end? And just curious on the overall Europe market there. How much of this weakness is still from WLTP lingering versus newer macro headwinds? And just curious if you're expecting any recovery into next year at all. That's my first, and I have a follow-up.

瑪莎，我有兩個問題想問你。我的意思是，你們的基本歐洲生產有什麼更新嗎，特別是因為它符合你們 1% 到 4% 的核心收入成長？低端和高端的基本生產假設是什麼？只是對整個歐洲市場感到好奇。這種疲軟在多大程度上仍然是由於 WLTP 揮之不去和新的宏觀逆風造成的？只是好奇你是否預計明年會有任何復甦。這是我的第一次，我還有後續。

Yes. So when we just look at it quantitatively, Europe we're expecting to be close to 4% down for the overall year, and that is incrementally down from our previous guide.

是的。因此，當我們僅從數量上來看時，我們預計歐洲全年將下降近 4%，這比我們之前的指導逐漸下降。

As it relates to WLTP, we believe that, that has been pretty much stabilized now as we exit from first to second quarter. And now we're seeing the impacts of overall end market dynamics. Keep in mind that some of our customers in Europe are also exporting to China. And so we'll measure that impact in Europe, where the demand takes place, but there is a knock-on effect in Europe as well. So those are the 2 things that we're looking at closely: the dynamics of the European end market, and then what happens to European suppliers when overall China continues to move.

就 WLTP 而言，我們相信，隨著我們從第一季到第二季退出，現在基本上已經穩定下來。現在我們看到了整體終端市場動態的影響。請記住，我們在歐洲的一些客戶也向中國出口。因此，我們將衡量需求所在的歐洲的影響，但歐洲也會產生連鎖反應。因此，這是我們正在密切關注的兩件事：歐洲終端市場的動態，以及當整個中國繼續發展時歐洲供應商會發生什麼。

Got it. My follow-up is on China automotive. Are -- what are you hearing about any potential automotive stimulus at this time? Is this still on the table? And if -- we have other credit measures. But is there a direct automotive stimulus we should be expecting if things get weaker? And what kind of rebound should we expect from Sensata if that were to happen?

知道了。我的後續關注是中國汽車。您目前對任何潛在的汽車刺激措施有何了解？這還擺在桌面上嗎？如果——我們還有其他信貸措施。但如果情況變得疲軟，我們是否應該期待直接的汽車刺激？如果這種情況發生，我們應該期待森薩塔帶來什麼樣的反彈？

There have been measures that have now been enacted. And so one in particular is around incentives to take sort of low -- older, more polluting vehicles and upgrade those to NEVs. We know that, that has been enacted. We know more broadly there have been VAT incentives that have been in place in China. We're counting on those to have an impact, although we expect the impact will be late in the year, so not tremendous overall impact.

目前已經採取了一些措施。因此，其中一個特別是圍繞著激勵措施，鼓勵人們採用低端、老舊、污染更嚴重的車輛並將其升級為新能源汽車。我們知道，這已經頒布了。我們更廣泛地知道，中國已經實施了增值稅激勵措施。我們希望這些措施能夠產生影響，儘管我們預計影響將在今年稍後產生，因此整體影響不會很大。

As it relates to Sensata, keep in mind that our year-over-year comps, particularly as it relates to China, become much easier in the second half. So we saw very large contraction in the end market in China in the fourth quarter of last year, and that began actually in the third quarter. So much of our improvement comes from continued execution on our part, secular growth but also easier comps, quite frankly, as we get into the second half of the year.

由於與森薩塔相關，請記住，我們的同比比較，特別是與中國相關的比較，在下半年變得更加容易。因此，去年第四季我們看到中國終端市場出現了非常大的收縮，而這種收縮實際上是從第三季開始的。我們的進步很大程度上來自於我們的持續執行、長期成長，但坦白說，隨著我們進入下半年，我們的競爭也變得更加容易。

The next question will be from David Kelley of Jefferies.

下一個問題將由傑富瑞 (Jefferies) 的大衛凱利 (David Kelley) 提出。

A couple from me. Just looking at Slide 10 of the Performance Sensing segment margin, could you give us a bit more color on the impacts of the higher R&D investment and then some of the product launches that are taking place right now?

我的一對。看看幻燈片 10 的性能感測細分市場利潤，您能否給我們更多關於更高研發投資以及目前正在進行的一些產品發布的影響的資訊？

From an R&D perspective, there's a couple of million dollars increase year-over-year as it relates to investment in some of these emerging trends that we've mentioned around Smart & Connected and some of the electrification issues that we have ongoing.

從研發角度來看，同比增長了數百萬美元，因為這與我們提到的智慧互聯以及我們正在進行的一些電氣化問題的一些新興趨勢的投資有關。

I think relative to the new product launches, keep in mind it is very typical for us when we're launching brand-new products on brand-new processes and equipment, those will generally launch at margins that are lower than our company average. And that's because the yields are lower. That's because these are mission-critical products. So there is a lot of redundancy to ensure that our quality levels are where they need to be. And that's not the way we operate once we get to stabilization of the overall new products. So those margins will improve. What's a little bit unusual in the first quarter is that we have so much of that activity early in the year in our first quarter, which is usually our down quarter. So typically, it's in terms of margin. So the lowest-margin quarter for Sensata is always in our first quarter. It's not generally the quarter of the most intense new product launch. The good news is the new product launch is the proof point in -- on -- which underlines our secular growth performance. So it's great to be having that early in the year, and it will serve us very well as we go forward through the balance of the year. But that is an element of what's driving the lower operating margin in the Performance Sensing.

我認為相對於新產品的發布，請記住，當我們在全新的工藝和設備上推出全新產品時，這對我們來說是非常典型的，這些產品通常會以低於我們公司平均水平的利潤率推出。那是因為收益率較低。那是因為這些都是關鍵任務產品。因此，有大量的冗餘來確保我們的品質水平達到所需的水平。一旦我們的新產品整體穩定下來，我們就不會採取這種方式了。因此，這些利潤率將會提高。第一季有點不尋常的是，我們在年初的第一季（通常是業績下滑的季度）進行了大量此類活動。所以通常是指利潤率。因此，森薩塔利潤率最低的季度總是在我們的第一季。這通常不是新產品發布最密集的季度。好消息是新產品的推出證明了我們的長期成長表現。所以很高興能在今年年初做到這一點，這對我們在今年剩餘的時間裡非常有幫助。但這是導致績效感測業務利潤率下降的因素。

Okay. Great. That's helpful. And just a quick follow-up on an earlier point. You mentioned Europe auto end market weakness has kind of been the biggest surprise to the downside. It seems to be a recurring theme from the rest of the auto space this quarter, and I think you referenced general end market weakness. How much do you think is tied to the next round of emissions testing that kicks off, I believe, in Q3 of this year? And are there any end markets and -- specifically to call out where you're seeing broader weakness? And I guess as we think more broadly some of your content expansion opportunities and some of the recent product launches, anything specific to call out as it relates to Europe in the back half that might be a nice offset?

好的。偉大的。這很有幫助。只是對先前觀點的快速跟進。您提到歐洲汽車終端市場疲軟是最大的下行因素。這似乎是本季汽車領域其他領域反覆出現的主題，我認為您提到了終端市場的普遍疲軟。我認為，您認為與今年第三季開始的下一輪排放測試有多大關係？是否有任何終端市場——特別是要指出您在哪些方面看到了更廣泛的弱點？我想，當我們更廣泛地思考你們的一些內容擴展機會和最近推出的一些產品時，有什麼特別需要指出的，因為它與後半段的歐洲有關，這可能是一個很好的抵消？

Good question. So there is another round of emissions testing. I believe it happens in September, and it's related to evaporative emissions. And we've been watching that one very, very closely. And looking at what the actual protocols are, we don't expect that we're going to see another bottleneck in the overall supply chain in getting vehicles to market given that new protocol. I think that the industry has learned from the first round, so we're not expecting that to be what's driving the incremental downside that we're seeing. It really does come down to what's happening in specific geographies in Europe. Germany in particular has not been a strong country. We look at the impacts of Turkey, for example. We're mindful about Brexit being potential overhang and continuing to monitor that as well. But it's much more around the economic conditions in some of the countries in Europe that's driving our incremental downside.

好問題。於是又進行了一輪排放測試。我相信它發生在九月份，並且與蒸發排放有關。我們一直非常非常密切地關注這一事件。看看實際的協議是什麼，我們預計，鑑於新協議，我們不會在將車輛推向市場的整個供應鏈中看到另一個瓶頸。我認為該行業已經從第一輪中吸取了教訓，因此我們預計這不會成為我們所看到的增量下行的原因。這確實取決於歐洲特定地區正在發生的事情。特別是德國並不是一個強國。例如，我們研究土耳其的影響。我們注意到英國脫歐是潛在的懸而未決的問題，並繼續對此進行監控。但更多的是歐洲一些國家的經濟狀況推動了我們的增量下行。

As it relates to new product launches, we are very active in Europe with content growth, and that's important. Those are legislatively mandated applications that are driving our overall growth. And our launches are very much in line with expectations, very much helping us to offset that overall end market decline.

由於與新產品發布有關，我們在歐洲非常積極地進行內容成長，這很重要。這些是立法強制的應用程序，正在推動我們的整體成長。我們的產品發布非常符合預期，非常有助於我們抵消終端市場的整體下滑。

The next question will be from Jed Dorsheimer of Canaccord Genuity.

下一個問題將由 Canaccord Genuity 的 Jed Dorsheimer 提出。

I guess my first question, Martha, is you mentioned inventory levels in -- of autos in particular. And so if we look at the current levels, we have to go back to, I believe, 2007 precrisis to kind of get to these same bloated levels in terms of inventory in the markets. And so if we look at what happened from '08 to '09, we saw about a 13% reduction in production levels, and you've done a nice job of kind of framing and -- or shifting the business, talking about how you've gone from fixed costs to more variable costs. So if I look at the new guide of $50 million lower, which is about 5 million auto units from a production just in percentages, I was wondering if you could help frame -- and we remove FX and the share buyback, it looks like you're flat in EPS. So on $50 million lower, you're able to manage a flat EPS for the year. So I was wondering if you could frame whether or not there would be a waterfall if we see greater auto production cuts than what you're forecasting right now. Maybe for every 5 million units, what we should expect.

瑪莎，我想我的第一個問題是您提到的庫存水平，特別是汽車的庫存水平。因此，如果我們看看當前的水平，我相信，我們必須回到 2007 年危機前，才能達到市場庫存同樣膨脹的水平。因此，如果我們看看 08 年到 09 年發生的情況，我們會發現生產水平下降了約 13%，並且您在框架方面做得很好，或者說轉移了業務，談論了您如何已經從固定成本轉變為更多的變動成本。因此，如果我看一下新的指南，降低 5000 萬美元，即生產中約 500 萬輛汽車的百分比，我想知道您是否可以幫助框架 - 我們刪除了外匯和股票回購，看起來您每股收益持平。因此，只要減少 5000 萬美元，您就可以實現全年每股收益持平。因此，我想知道，如果我們看到汽車減產幅度比您現在預測的更大，是否會出現瀑布式增長。也許對於每 500 萬台來說，這就是我們應該期待的。

Jed, that's a good analytical question which I would expect from you. The -- I think a couple of things to keep in mind. The $50 million that's coming out of our overall view isn't all auto. It's a big piece of it when you look at Europe and -- particularly, little incrementally worse than China. But we're now biased towards the sort of worse end of our expectation in the HVOR market as well. And we're seeing some softness in our industrial business, which makes it challenging to tie all of the downside and the overall dropout.

傑德，這是一個很好的分析問題，我希望你能提出這個問題。我認為有幾件事需要牢記。從我們的整體觀點來看，這 5000 萬美元並不全是汽車。當你觀察歐洲時，這是其中一個重要的部分——尤其是，它比中國差一點點。但我們現在也偏向我們對 HVOR 市場預期的更糟糕的結果。我們看到我們的工業業務出現了一些疲軟，這使得將所有不利因素和整體下降聯繫起來具有挑戰性。

Also recognize that while we have been growing really well in China, our content per vehicle in China is still lower than a mature market content per vehicle. So it matters a lot where that overall dropout is in the end market. So we'll try to think of ways to be helpful to make sure folks understand where further changes in the end market may impact our overall top line.

也要認識到，雖然我們在中國發展得非常好，但我們在中國的每輛車的含量仍然低於成熟市場的每輛車的含量。因此，最終市場的整體流失率非常重要。因此，我們將盡力想辦法幫助確保人們了解終端市場的進一步變化可能會影響我們的整體營收。

I think the key thing to recognize is we are very deliberate about ensuring that our costs are aligned with where the market is going. And so it's not simply an independent top line call. There are cost actions that come with that. We are continuing to reposition our costs in some locations given what we see coming in terms of overall end market softness. So that's the piece you can be very, very confident of in terms of preserving our margins and minimizing any fall-through that comes out of revenue declines.

我認為要認識到的關鍵一點是，我們非常謹慎地確保我們的成本與市場發展方向保持一致。因此，這不僅僅是一次獨立的頂線電話會議。隨之而來的是一些成本行動。鑑於我們認為整體終端市場疲軟，我們將繼續重新調整某些地區的成本。因此，在保持我們的利潤並最大限度地減少因收入下降而造成的損失方面，您可以非常非常有信心。

That's helpful. Just as a follow-up, Martha, and just shifting gears over to the win that you got in the trucking with the gateway, I was wondering if you could provide any additional color with respect to content on that as it seems like clearly, it's a content growth story for both auto as well as HVOR, and I just -- maybe a little bit of color would be helpful.

這很有幫助。就像後續行動一樣，瑪莎，只是將齒輪轉向您在網關卡車運輸中獲得的勝利，我想知道您是否可以提供有關內容的任何其他顏色，因為看起來很明顯，它是一個關於汽車和HVOR的內容成長故事，我只是——也許一點點色彩會有所幫助。

Sure. We're really excited about this one. The -- I think the way to think about it is that there -- as we talked about, we're very strong in wireless sensors. That has given us an ability to take a look at the consolidation of input of sensors across the commercial truck and quite frankly the trailer information as well. So you can think of it as an area network that we're providing on that commercial truck trailer. What that allows us to do is really enhance our overall sensor content. But frankly, much more importantly, we're bringing brand-new content to the vehicle. The gateway itself, the range of that ASP, there can be quite a range on that given what the overall optionality of function the OEM or the fleet manager chooses. Keep in mind there's a retrofit piece of this. But we're talking about ranging from, I would say very high double-digit ASPs for this kind of added functionality. And then as we look ahead, there are opportunities to move beyond just the hardware piece of that but also look at the service and even Software-as-a-Service element that comes with owning that particular gateway. So we're really, really excited about it.

當然。我們對此感到非常興奮。我認為思考這個問題的方式是，正如我們所說，我們在無線感測器方面非常強大。這使我們能夠查看商用卡車上感測器輸入的整合，坦白說，還有拖車資訊。因此，您可以將其視為我們在商用卡車拖車上提供的區域網路。這使我們能夠真正增強我們的整體感測器內容。但坦白說，更重要的是，我們正在為車輛帶來全新的內容。考慮到 OEM 或車隊經理選擇的功能的整體可選性，網關本身、ASP 的範圍可能有相當大的範圍。請記住，這裡有一個改造部分。但我們談論的範圍從，我想說，這種附加功能的 ASP 非常高。然後，當我們展望未來時，我們有機會超越硬體部分，並且還可以專注於擁有該特定網關的服務，甚至是軟體即服務元素。所以我們對此感到非常非常興奮。

The next question will be from Steven Fox of Cross Research.

下一個問題將來自 Cross Research 的 Steven Fox。

First question, just on some of the margin pressures related to the new product ramps. I'm just trying to understand the math there a little bit more. I mean is it basically the quantity of ramps? Or was there any specific ramps in there that put more pressure than others on the margin? Or was it the percentage relative to sort of a slower overall Q1? And how that -- how -- can you just sort of describe how those ramp from here and whether we see more margin pressures in the next quarter or 2?

第一個問題，只是關於與新產品升級相關的一些利潤壓力。我只是想多了解一點數學。我的意思是基本上是坡道的數量？或者是否有任何特定的坡道比其他坡道對邊際施加了更大的壓力？還是相對於第一季整體放緩的百分比？你能描述一下這些是如何從現在開始增加的，以及我們是否會在下一個或第二個季度看到更多的利潤壓力？

Yes. It's really the latter 2 factors that you cited. It's the quantity of ramp. Again, that is the expected consequence of stronger overall secular growth and wins in the marketplace. And it's the fact that it's happening at a time where overall volumes are down in the product areas that are moving more with market. So it's a combination of the overall mix impact of those 2 things: quantity of ramps and lower overall rate at large in the business. And then as we look ahead, the remedy for that is quite straightforward and very familiar to Sensata. We have to do 2 things. We have to quickly get the overall margins of those new products up to their designed margins, and that is a task that is part of our overall launch strategy. This is not unusual, that challenge. And then secondly, we have to make sure that we are constantly repositioning the cost where we see volume down, also not an unusual challenge for Sensata, and we've got a great track record of doing that effectively.

是的。這實際上是您引用的後兩個因素。這是斜坡的數量。同樣，這是更強勁的整體長期成長和市場勝利的預期結果。事實上，這種情況發生在隨著市場變化較多的產品領域整體銷售下降的時候。因此，這是這兩件事的整體組合影響的結合：斜坡數量和整個業務的總體較低率。展望未來，解決方案非常簡單，而且森薩塔非常熟悉。我們必須做兩件事。我們必須迅速使這些新產品的整體利潤達到其設計利潤，這是我們整體發布策略的一部分。這種挑戰並不罕見。其次，我們必須確保在銷售下降的情況下不斷重新調整成本，這對森薩塔來說也不是一個不尋常的挑戰，而且我們在有效地做到這一點方面擁有良好的記錄。

Great. That's very helpful. And then just as a follow-up, could you -- given sort of the incremental down cuts to your end markets expectations, how does that affect what type of slope we should be thinking about for the second half of the year? Obviously, the comparisons get easier. But in aggregate, do you think it's -- your sales are a little bit more back-end loaded based on what you're now seeing in the end markets?

偉大的。這非常有幫助。然後，作為後續行動，考慮到終端市場預期的逐步下調，這對我們應該考慮下半年的斜率類型有何影響？顯然，比較變得更容易。但總的來說，您是否認為——根據您現在在終端市場看到的情況，您的銷售有更多的後端負載？

Yes, they're -- I'd say they're somewhat back-end loaded, again, just given the way we see the overall end market dynamics playing out. couple of things to keep in mind. So we move from a really down quarter, for example, in China in the fourth quarter. That end market moved sideways into the first quarter. So we are expecting that market to get better from a year-over-year perspective. And -- but it doesn't have to get a lot better for us to achieve our overall second half. Paul, do you have anything to add to that (inaudible)?

是的，我想說，考慮到我們看到整體終端市場動態的發揮方式，它們在某種程度上是後端負載的。有幾件事要記住。因此，我們從一個真正下滑的季度中走出來，例如，中國的第四季。終端市場進入第一季橫向移動。因此，我們預計該市場從同比角度會變得更好。而且──但我們並不需要變得更好才能實現下半年的整體目標。保羅，您還有什麼要補充的嗎（聽不清楚）？

Yes, I would say we expect to see the improvement in organic growth improve from Q3 to Q4. So we -- somewhere in the low single-digit organic growth in Q3 and then improving in Q4 to get to the full year guide. So gradual improvement. And that's also benefiting from the lower -- from the favorable comps year-over-year given how low last year's Q4 was in many of our end markets beyond just China auto.

是的，我想說，我們預計第三季到第四季有機成長會有所改善。因此，我們在第三季度處於較低的個位數有機成長，然後在第四季度有所改善，以達到全年指南。如此逐步改善。這也受益於較低的業績——考慮到去年第四季除中國汽車以外的許多終端市場的低迷程度，得益於同比有利的比較。

(Operator Instructions) The next question will be from Shawn Harrison of Longbow Research.

（操作員說明）下一個問題將由 Longbow Research 的 Shawn Harrison 提出。

Martha, I was hoping you could give us a sense on inventory in the Sensing Solutions business, particularly just your -- the inventory of your product or final product within China in the industrial and kind of HVAC and appliance markets and how much of an overhang that is right now if at all.

瑪莎，我希望您能讓我們了解感測解決方案業務的庫存情況，特別是您的產品或最終產品在中國工業、暖通空調和家電市場的庫存，以及有多少懸置如果有的話，那就是現在。

Yes. That's -- keep in mind that's a really diversified end market space for us. We do keep our eye on indicators. For example, industry online information that we can get in that overall market. We recognize that inventories were high coming into the year. We've seen some improvement on that, so we expect to see that overall inventory rate come down and some production levels then come down with that as we move through the balance of the year. And that's part of what's informed our guide as we look to the second half of the year.

是的。請記住，這對我們來說是一個真正多元化的終端市場空間。我們確實關注指標。例如，我們可以獲得整個市場的行業線上資訊。我們體認到今年庫存量很高。我們已經看到了這方面的一些改善，因此我們預計隨著今年剩餘時間的推移，整體庫存率會下降，一些生產水準也會隨之下降。這是我們展望下半年的指南的一部分。

And as a brief follow-up, gross margin that everyone's touched on was down 110 basis points year-over-year. Is there a way to bucket how much of that was because of lower volume on legacy products versus the valves business sales/the GIGAVAC acquisition versus the cost from launching new products just to have an idea of, as you get those new products back to the corporate average, kind of the bounce back we should expect?

作為一個簡短的後續行動，大家都提到的毛利率年減了 110 個基點。有沒有一種方法可以計算出其中有多少是由於傳統產品銷量下降與閥門業務銷售/GIGAVAC 收購與推出新產品的成本（只是為了了解一下，當您將這些新產品帶回市場時）造成的。企業平均水平，我們該期待什麼樣的反彈？

I think the 2 big drivers would be the change in customer pricing that happens every year at the beginning of the year. That's probably half of that. And then the new product launches make up the rest.

我認為兩大驅動因素是每年年初發生的客戶定價變動。這可能是一半。然後新產品的發布彌補了剩下的部分。

Yes. The -- one thing to keep in mind, too, as we get into the second half of the year, that, that acquisitions headwind also diminishes because we divested the valves in the third quarter. So that's been a piece of it. That diminishes as we move through the year.

是的。還有一件事要記住，當我們進入下半年時，收購逆風也會減弱，因為我們在第三季剝離了閥門。這就是其中的一部分。隨著時間的推移，這種情況會逐漸減少。

And the next question will be from Christopher Glynn of Oppenheimer.

下一個問題將來自奧本海默的克里斯托弗·格林。

I had a question about new product launches by automotive OEM customers. And curious how you think about the impact of trade and tariff uncertainty because the major OEMs have global production, some local for local, some not, and they have to decide how to allocate production. So wondering if you could comment on that dynamic if you think it exists.

我有一個關於汽車 OEM 客戶推出新產品的問題。我很好奇你如何看待貿易和關稅不確定性的影響，因為主要的原始設備製造商都有全球生產，有些是本地生產，有些不是，他們必須決定如何分配生產。所以想知道如果您認為這種動態存在，您是否可以對此發表評論。

Well, from -- the way that dynamic would impact Sensata, if at all, would be whether those customers end up seeing their overall demand come down. We are -- we have positioned pretty effectively to be region for region. So our -- in Europe, we're providing from Bulgaria. In North America, it's from Mexico. China for China. So that has less direct impact on our overall supply chain movement. What we're keeping an eye on are -- is if, for example, it becomes more difficult to bring a vehicle produced in Europe into North America, how then will OEM share shift change. We're generally agnostic to overall OEM mix inside the region because we're pretty well represented across that OEM space. I think the one customer we've always been really transparent about that we don't have great position on is Toyota. So we look to see whether or not they're advantaged given any of these changes. But I'd say to respond to that, Chris, it's really more what the overall impact it has on demand in the end markets.

好吧，這種動態對森薩塔的影響（如果有的話）將是這些客戶最終是否會看到他們的整體需求下降。我們已經非常有效地定位為區域對區域。因此，在歐洲，我們從保加利亞提供。在北美，它來自墨西哥。中國為中國。因此，這對我們整個供應鏈運動的直接影響較小。我們正在關注的是，例如，如果將歐洲生產的汽車引入北美變得更加困難，那麼 OEM 份額將如何變化。我們通常不知道該地區內的整體 OEM 組合，因為我們在整個 OEM 領域都有很好的代表性。我認為我們一直非常透明但沒有很好立場的一個客戶是豐田。因此，我們希望了解這些變化是否會為他們帶來優勢。但我想說的是，克里斯，對此做出回應，實際上更多的是它對終端市場需求的整體影響。

So you don't see that trade uncertainty causing any deferrals or pushouts in new platform launch cadence?

那麼您認為貿易不確定性不會導致新平台發布節奏的任何延遲或推出嗎？

We have not seen that. No, absolutely not.

我們還沒有看到這一點。不，絕對不是。

Okay. And then a question on GIGAVAC. You talked about a $300 million sales pipeline. Just to put that into context, wondering how you're thinking about prospective capture rates competitively.

好的。然後是關於 GIGAVAC 的問題。您談到了 3 億美元的銷售管道。只是將其放在上下文中，想知道您如何考慮競爭性的預期捕獲率。

Yes. We're very encouraged. It's early days. But when we look at our hit ratios or our win ratios, they're high, in line with overall Sensata's and, I would say, even above what our expectations had been when we did our diligence. And that's a function really of strong technology that comes from GIGAVAC as well as a great position that we have in the overall market. So feeling really good about our success rate in the market.

是的。我們深受鼓舞。現在還早。但當我們查看我們的命中率或獲勝率時，它們很高，與森薩塔的整體水平一致，而且我想說，甚至高於我們盡職調查時的預期。這確實是 GIGAVAC 強大技術的功勞，也是我們在整個市場中所佔據的重要地位。因此，我們對我們在市場上的成功率感到非常滿意。

And the next question will be from Brian Johnson of Barclays.

下一個問題將由巴克萊銀行的布萊恩·約翰遜提出。

Yes, Martha. Several questions. First, just touching upon the share repurchase plan. You mentioned pulling $150 million to it. But can -- you -- $550 million over 10 months. I know last May you did a $400 million authorization. So there must have been some remaining. How are you thinking about the pace going forward and what you as a Board might be bringing to shareholders or have already presented to shareholders, but I haven't seen it, for the upcoming year?

是的，瑪莎。幾個問題。首先，談談股票回購計畫。你提到要投入 1.5 億美元。但你可以在 10 個月內投入 5.5 億美元。我知道去年五月你們授權了 4 億美元。所以肯定還剩下一些。您如何看待未來一年的前進步伐以及您作為董事會可能為股東帶來或已經向股東帶來的東西，但我還沒有看到？

It's Paul. So we come back to our strategy around balanced capital deployment, weighing the benefit of M&A and share repurchases. So since we redomiciled to the U.K. back in the end -- middle of last year, springtime, we bought back $550 million of shares, we've acquired GIGAVAC. And so as we go forward, we have $100 million left on our authorization to the Board who we interact with fairly regularly around capital deployment. And it's likely we're going to spend $100 million over the next 6 to 9 months and complete the authorization. Depending on what other opportunities are in front of us, we may go back to the Board for increase, but we're going to continue to look at that in a balanced way that drives the greatest returns for the company and for shareholders.

是保羅。因此，我們回到平衡資本配置的策略，權衡併購和股票回購的好處。因此，自從我們去年年中春天遷回英國以來，我們回購了 5.5 億美元的股票，我們收購了 GIGAVAC。因此，隨著我們的前進，我們還剩下 1 億美元的授權給董事會，我們定期與董事會就資本部署進行互動。我們很可能會在未來 6 到 9 個月內花費 1 億美元來完成授權。根據我們面前的其他機會，我們可能會向董事會尋求增加，但我們將繼續以平衡的方式看待這個問題，從而為公司和股東帶來最大的回報。

Okay. And second question -- a second, more housekeeping question and a more strategic one. The housekeeping question: anything unusual or -- in terms of greater pressures this year in the annual price downs that you mentioned at calendar first quarter? I'm thinking in particular the automotive side given the pressure on margins across the OEM industry.

好的。第二個問題──第二個，更多的是內務問題，也是一個更具策略性的問題。內政問題：有什麼不尋常的事情嗎？考慮到整個 OEM 行業的利潤壓力，我特別想到的是汽車方面。

No. Nothing unusual. And in fact, when we look at our overall price downs, we're running at less price giveaway than we have historically. So when volume's down, it's an opportunity to revisit the conversation, where volumes were expected to increase at a particular level, and renegotiate price downs given less volume being delivered, quite frankly.

不。沒什麼不尋常的。事實上，當我們看到整體價格下降時，我們的價格優惠比歷史上要少。因此，當成交量下降時，這是一個重新審視對話的機會，坦白說，預計成交量會在特定水平上增加，並在交付量減少的情況下重新協商價格下調。

Okay. And final question, more strategic. This overall secular shift of wireless sensing, both in regular automotive, future automotive and probably your industrial and HVOR end markets as well, is that something that will help -- it's certainly your growth platform. But how do you think about it in terms of margins and ROIC both in the growth phase and then when -- as the market gets more substantial and more mature?

好的。最後一個問題，更具策略性。無線感測的整體長期轉變，無論是在普通汽車、未來汽車，或許還有工業和 HVOR 終端市場，都是有幫助的——它肯定是您的成長平台。但是，您如何看待成長階段以及市場變得更加龐大和成熟時的利潤率和投資回報？

At a gross margin perspective, we would expect that to be accretive to our overall growth margins. It's an area where we're investing heavily in R&D. So I would think about -- probably at about company average when it comes to PFO or EBIT but accretive on the gross margin line.

從毛利率的角度來看，我們預計這將增加我們的整體成長率。這是我們大力投資研發的領域。因此，我會考慮——當涉及 PFO 或 EBIT 時，可能約為公司平均水平，但會增加毛利率。

The next question will be from Matthew Sheerin of Stifel.

下一個問題將來自 Stifel 的 Matthew Sheerin。

This is Alvin Park on behalf of Matt Sheerin. Could we -- could you elaborate a little bit more on what you're seeing -- what your expectation is for auto production demand? I believe global auto production was 3% to 4% decline with China at 5% to 6% and Europe at 4%. So what's a gauge of how you're seeing North America markets and the cadence of it, especially in the second half, in relation to prior year comps?

我是阿爾文·帕克，代表馬特·謝林。我們能否—您能否詳細說明您所看到的情況—您對汽車生產需求的預期是什麼？我認為全球汽車產量將下降 3% 至 4%，其中中國下降 5% 至 6%，歐洲下降 4%。那麼，與前一年的比較相比，您如何看待北美市場及其節奏（尤其是下半年）的衡量標準是什麼？

Yes. North America is playing out in line with our overall expectations coming into the year. And then we -- again, we expected it to be a down market. I think we called it around overall 1%. When we look at what's happening in the customer base, it's behaving in line with our expectations.

是的。北美地區的表現符合我們今年的整體預期。然後我們再次預計市場會低迷。我想我們稱之為總體 1% 左右。當我們觀察客戶群中發生的情況時，它的表現符合我們的預期。

The next question will be from Joseph Giordano of Cowen.

下一個問題將來自 Cowen 的 Joseph Giordano。

This is Rob in for Joe. I just had a quick follow-up to the question asked earlier. But the Wireless Battery Management agreement that you mentioned, I just wonder if you could give us some color on what kind of content that would be. And then also, just like how discussions have gone in the industry regarding technologies like that, how much excitement there is around that? Just anything you could provide would be helpful.

這是羅布代替喬。我剛剛對之前提出的問題進行了快速跟進。但是你提到的無線電池管理協議，我只是想知道你能否給我們一些關於它是什麼樣的內容的資訊。然後，就像業界對此類技術的討論一樣，圍繞這項技術有多少令人興奮的事情？只要你能提供的任何東西都會有幫助。

Sure. When we look at the content, again given these are much more complex products, mission critical, and they have optionality in terms of what we can deliver to the customer. So the ASPs move around a bit. But we're talking about ASPs here that are in the hundreds of dollars. So significant adder. I think at one point, we provided in an earnings call the trajectory of our content per EV, and our base case on that was something like $175, probably up to a couple hundred, per vehicle. So it's quite significant, well, because really important is to make sure that we're doing 2 things. First of all, providing at or better performance from the current wired solutions that are in place. And then secondly, delivering on incremental benefits to our customers, and they're really seeing those. So this notion of being able to increase overall energy density is a big one. The ability now to actually monitor battery cell information throughout the manufacturing process as well as through the life of the overall vehicle, a lot of excitement around that as well. So I -- we consider it's still early days, but the engagements now are significant enough and developed enough where we're able to say we see a line of sight to overall first revenue.

當然。當我們查看內容時，再次考慮到這些產品更加複雜，任務關鍵，並且在我們可以向客戶提供的內容方面它們具有選擇性。因此 ASP 會發生一些變化。但我們這裡討論的是數百美元的 ASP。如此重要的加法器。我認為有一次，我們在財報電話會議中提供了每輛電動車的內容軌跡，我們的基本情況是每輛車 175 美元，可能高達數百美元。所以這非常重要，因為真正重要的是確保我們正在做兩件事。首先，提供與目前現有有線解決方案相同或更好的效能。其次，為我們的客戶提供增量效益，他們確實看到了這些。因此，能夠提高整體能量密度的想法是一個很大的想法。現在能夠在整個製造過程以及整個車輛的生命週期中實際監控電池訊息，這也令人興奮。所以我 - 我們認為現在還處於早期階段，但現在的合作已經足夠重要並且已經足夠發展，我們可以說我們看到了總體第一收入的視線。

The next question will be from Mark Delaney of Goldman Sachs.

下一個問題將由高盛的馬克·德萊尼提出。

Yes. I was hoping you can talk more on the HVOR market. Martha, you highlighted the content gains the company has seen in that market. I was hoping you can elaborate a bit more on maybe what specific products are helping with that content gain. And you talked about the variability quarter-to-quarter. Were you trying to signal anything about the rate of content growth investors should be expecting for the balance of this year? Or is that just talking about the normal cyclicality and lumpiness that can occur with content in general?

是的。我希望您能多談談 HVOR 市場。瑪莎，您強調了公司​​在該市場中看到的內容收益。我希望您能詳細說明哪些特定產品有助於增加內容。您談到了季度與季度之間的變化。您是否試圖表明投資者對今年剩餘時間的內容成長速度的預期？或者這只是在談論一般內容可能出現的正常週期性和波動性？

It's really the latter, the -- just recognizing that the content piece moves around quarter-to-quarter. We expect that we'll see strong overall content growth in HVOR when we look back on 2019. So really happy about the overall performance there. And it's driven by the -- many of the things we've talked about. We continue to see a move towards electrifying the cabin of off-road equipment. So we're moving from mechanical, hydraulic controls into electric, electronic solutions. What we bring to that challenge continues to increase in terms of the overall subsystem and their functionality. We see lots of opportunity to continue to add content per cabin as we work that opportunity. We're now seeing very early days on bringing Electrification products to that overall segment. So very, very early in the process. But when you look at medium-duty trucks and commercial buses, that's our focus. So we're engaged closely with customers, beginning to respond to some overall RFPs for those solutions. And then finally, we continue to see the need for cleaner overall conventional powertrains when you look broadly at the commercial truck market, and we're helping our customers solve those problems as well.

實際上是後者，只是認識到內容片段每季都會改變。我們預計，當我們回顧 2019 年時，HVOR 的整體內容將出現強勁成長。對那裡的整體表現非常滿意。它是由我們討論過的許多事情所驅動的。我們繼續看到越野設備駕駛室電氣化的趨勢。因此，我們正在從機械、液壓控制轉向電氣、電子解決方案。我們為這項挑戰帶來的挑戰在整個子系統及其功能方面不斷增加。當我們利用這個機會時，我們看到了許多繼續為每個小屋添加內容的機會。我們現在看到將電氣化產品引入整個細分市場還處於早期階段。所以在這個過程的非常非常早期。但當您專注於中型卡車和商用巴士時，這就是我們的重點。因此，我們與客戶密切合作，開始回應這些解決方案的一些整體 RFP。最後，當你廣泛觀察商用卡車市場時，我們繼續看到對更清潔的整體傳統動力總成的需求，並且我們也在幫助我們的客戶解決這些問題。

And so a follow-up along those same lines. I think it was last summer you highlighted some initial wins with steer-by-wire. Can you remind us when those start to go into production and what the content per truck opportunity is from steer-by-wire?

因此，後續行動也是如此。我認為去年夏天您強調了線控轉向的一些初步勝利。您能否提醒我們這些產品何時開始投入生產以及每輛卡車的線控轉向機會有哪些內容？

Yes. Steer-by-wire is a ways out. The -- and my recollection is that we're in the 3- to 4-year horizon when we see as a meaningful revenue on that. Content can be quite high. Our overall content on those subsystems tends to be high anyway, triple digits when you look at what that overall functionality is.

是的。線控轉向是一條出路。我的記憶是，我們將在 3 到 4 年的時間內看到這方面的收入。內容可能相當高。無論如何，我們關於這些子系統的整體內容往往很高，當你看看整體功能是什麼時，會達到三位數。

One other thing I should mention in HVOR really I forgot to mention is we are launching in TPMS as well, and we're using the TPMS opportunity as the basis for upselling to this overall gateway, and we're having success in doing that.

我在HVOR 中應該提到的另一件事（我確實忘了提及）是我們也在推出TPMS，我們正在利用TPMS 機會作為向整個網關進行追加銷售的基礎，並且我們在這方面取得了成功。

The next question will be from Jim Suva of Citi.

下一個問題將由花旗銀行的吉姆·蘇瓦提出。

And Martha, you gave a lot of details on all that thus far. Setting aside the kind of near-term auto headwinds, looking at some of your recent announcements of the battery optimization and benefits from that and steer-by-wire, so it sounds like we're setting up for maybe -- and maybe my time line, you can correct me, in like 2-ish or 3-ish years, a potential meaningful step-up in your content. Is that the way to think about it, about the design cycle happening now and getting the wins and the production in a few years? So that could be a meaningful step-up. And if you can clarify if that's the time line we should think of.

瑪莎，到目前為止你已經提供了很多細節。撇開近期的汽車不利因素不談，看看你們最近發布的一些關於電池優化的公告以及由此帶來的好處和線控轉向，所以聽起來我們正在為也許——也許是我的時間做好準備線，你可以糾正我，在大約兩年或三年左右的時間內，你的內容可能會有意義的進步。這是思考現在發生的設計週期並在幾年內獲得勝利和生產的方式嗎？因此，這可能是一個有意義的進步。如果您能澄清這是否是我們應該考慮的時間表。

And then my second point is more near term. The fluctuations in raw materials, aluminum, copper, plastics, oil, resins, are you guys hedged? How should we think about the fluctuations in the raw materials?

我的第二點是近期的。原料的波動，鋁、銅、塑膠、石油、樹脂，你們對沖了嗎？我們該如何看待原料的波動？

Yes. Let me address your first question, Jim. I'll let Paul chime in on what's going on in commodities in the business.

是的。讓我回答你的第一個問題，吉姆。我會讓保羅插話一下大宗商品的業務動態。

We are certainly very much focused on continuing to extend our overall secular growth and, quite frankly, inflect it. And so when you look at the overall value of the new solutions we're bringing, much higher ASPs, that's an important element of it, is positioning to be able to inflect the overall growth.

我們當然非常專注於繼續擴大我們的整體長期成長，並且坦白說，改變它。因此，當您查看我們帶來的新解決方案的整體價值時，會發現更高的平均售價（ASP），這是其中的一個重要因素，定位為能夠影響整體成長。

Having said that, I would say it's still early days. And in things like our Wireless Battery Management, sensing, it's really going to happen also at the rate of electric vehicle growth per penetration in the fleet. So there are some externalities that will impact how these play out and impact Sensata's overall growth. But the intention is very much to inflect from what is, I think, a strong secular growth rate today to one that's even stronger.

話雖如此，我想說現在還為時過早。在我們的無線電池管理、感測等領域，電動車在車隊中的滲透率成長速度也確實會發生。因此，存在一些外部因素會影響這些因素的發揮以及森薩塔的整體成長。但我認為，其目的很大程度上是為了將目前強勁的長期成長率轉變為更強勁的成長率。

On the currency -- sorry, on the commodity piece, we hedge our commodities the way that we do currencies. So we hedge out forward about 18 months. And so it doesn't have a meaningful impact on our financials in 2019, and our commodity spend is probably around $65 million, $70 million per year.

在貨幣方面——抱歉，在大宗商品方面，我們以對沖貨幣的方式對沖我們的商品。所以我們對沖大約 18 個月。因此，這對我們 2019 年的財務狀況沒有重大影響，我們的商品支出可能約為每年 6,500 萬至 7,000 萬美元。

So they -- it may -- the true commodity piece of what we procure is pretty small, Jim.

所以他們——可能——我們採購的真正商品部分很小，吉姆。

The next question will be from Craig Hettenbach of Morgan Stanley.

下一個問題將由摩根士丹利的克雷格·赫滕巴赫提出。

Yes. Just a follow-up question on the gross margin and understanding it's expected to improve through the course of the year. Is there a level you think you would settle out, how long a term, how to think about what the range of gross margin is for your mix of business?

是的。只是一個關於毛利率的後續問題，並了解毛利率預計在今年會有所改善。您認為您會解決一個水平嗎？

Longer term, okay, we continue to work the productivity side to more than offset the contractual price downs that we see in the automotive business, and we've had a rich history of doing that, whether it's reducing material costs through working with suppliers or design-driven cost savings or increasing the productivity or managing our network to be the most optimized, efficient it can be. All those activities go into driving costs out of the product every year, and we look for that to be more than the price that comes down, which is the long-term nature of our business, particularly on the auto side. So we expect gross margins to continue to grow year-over-year. We've seen that trend over the last few. The launch of the new products certainly has created some challenges in terms of margin profile in the first quarter, but we expect that to improve, as we continue to do -- we always do every year, day in and day out. And if you look at our trends in the past, you'll see gross margins continue to grow quarter-to-quarter. So I feel confident that we'll be able to achieve the expectations that we have for the year and going forward.

從長遠來看，好吧，我們繼續在生產力方面努力，以抵消我們在汽車行業看到的合約價格下降，而且我們在這方面擁有豐富的歷史，無論是透過與供應商合作來降低材料成本，還是透過與供應商合作來降低材料成本。所有這些活動每年都會降低產品成本，我們希望這不僅僅是價格的下降，這是我們業務的長期性質，特別是在汽車方面。因此，我們預計毛利率將繼續同比增長。過去幾年我們已經看到了這種趨勢。新產品的推出無疑給第一季的利潤狀況帶來了一些挑戰，但我們預計情況會有所改善，我們將繼續這樣做——我們每年都在這樣做，日復一日。如果您查看我們過去的趨勢，您會發現毛利率逐季度持續成長。因此，我相信我們將能夠實現今年和未來的期望。

And ladies and gentlemen, that's all the time allotted for the call today. I would like to turn the conference back over to Josh Young for his closing remarks.

女士們、先生們，今天的通話時間就到此為止。我想將會議轉回由喬許楊（Josh Young）發表閉幕詞。

Thank you. I'd like to thank everybody for joining the call this morning. Sensata will be attending the following investor conferences in the next 2 months: the JPMorgan technology conference, the Melius industrials conference, the Robert Baird tech conference and the Stifel Cross Sector Insight Conference. We hope to see you at these conferences, and we invite you to visit us at our headquarters in Attleboro, Massachusetts. We appreciate your interest in Sensata. Thank you, and good day.

謝謝。我要感謝大家今天早上加入電話會議。森薩塔將在未來 2 個月內參加以下投資者會議：摩根大通技術會議、Melius 工業會議、Robert Baird 技術會議和 Stifel Cross Sector Insight 會議。我們希望在這些會議上見到您，並邀請您參觀我們位於馬薩諸塞州阿特爾伯勒的總部。我們感謝您對森薩塔的興趣。謝謝你，美好的一天。

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。