Sensata Technologies Holding PLC (ST) 2019 Q2 法說會逐字稿

Good day, and welcome to Sensata Technologies Q2 2019 Earnings Call. (Operator Instructions) Please note, this event is being recorded.

美好的一天，歡迎參加森薩塔科技 2019 年第二季財報電話會議。（操作員說明）請注意，正在記錄此事件。

Now I would like to turn the conference over to Mr. Joshua Young, Vice President, Investor Relations. Please go ahead, sir.

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, Keith, and good morning to everybody on the call. I'd like to welcome you to Sensata's Second Quarter 2019 Earnings Conference Call. Joining me on today's call are Martha Sullivan, Sensata's CEO; Jeff Cote, Sensata's President and Chief Operating Officer; and Paul Vasington, Sensata's Chief Financial Officer.

謝謝你，基思，祝所有參加電話會議的人早安。歡迎您參加森薩塔 2019 年第二季財報電話會議。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)； Jeff Cote，森薩塔總裁兼營運長；和保羅‧瓦辛頓 (Paul Vasington)，森薩塔科技財務長。

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, and we will post a replay of today's webcast shortly after the conclusion of today's call.

除了我們今天早些時候發布的收益報告外，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不久發布今天網路廣播的重播。

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. 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的 10-Q 和 10-K 表格以及隨後向 SEC 提交的其他文件中討論的因素。

On Slide #3, we show Sensata's GAAP results for the second quarter of 2019. We encourage you to review our GAAP financial statements in addition to today's presentation. Most of the subsequent information we will be discussing during today's calls -- 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 12 and 13, which are the primary measures management uses to evaluate the business.

在幻燈片 #3 上，我們展示了森薩塔 2019 年第二季的 GAAP 業績。除了今天的演示之外，我們鼓勵您查看我們的 GAAP 財務報表。我們將在今天的電話會議中討論的大部分後續資訊將與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。該公司在幻燈片 12 和 13 上提供了其部門營業收入的詳細信息，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. Jeff will then provide more details on our secular growth drivers and investments in electrification. Paul will then cover our financials for the second quarter of 2019 and provide guidance for the third quarter and an update to our 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。然後，傑夫將提供有關我們的長期成長動力和電氣化投資的更多詳細資訊。隨後，Paul 將介紹我們 2019 年第二季的財務狀況，並提供第三季的指導以及 2019 年全年指導的更新。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。

During the second quarter, we continued to significantly outperform our end market while advancing important electrification initiatives that will benefit our long-term revenue growth. While we generated lower volume in Q2 as a result of incrementally weaker end markets, we still delivered solid earnings and margin performance. This performance reflects our ability to respond quickly to market changes as well as the impact from our capital deployment program.

在第二季度，我們的表現持續顯著優於終端市場，同時推動重要的電氣化舉措，這將有利於我們的長期營收成長。儘管由於終端市場逐漸疲軟，我們在第二季度的銷量有所下降，但我們仍然實現了穩健的利潤和利潤率表現。這一業績反映了我們快速響應市場變化的能力以及我們的資本部署計劃的影響。

On Slide 4, I list some of the key highlights of the second quarter. For the second quarter, we reported revenues of $883.7 million, which represented an organic revenue decline of approximately 1.6%. We delivered adjusted EPS of $0.93, which was within the range of our guidance and flat with the EPS we generated in the second quarter of 2018. HVOR continued to be our fastest growing business, generating organic revenue growth of 1%, which partially offset a 1.1% organic revenue decline in our automotive business and a 4.1% organic revenue decline in Sensing Solutions.

在幻燈片 4 上，我列出了第二季的一些主要亮點。第二季度，我們報告營收為 8.837 億美元，有機收入下降約 1.6%。我們的調整後每股收益為 0.93 美元，在我們的指導範圍內，與 2018 年第二季的每股收益持平。HVOR 仍然是我們成長最快的業務，有機收入成長 1%，部分抵消了我們汽車業務 1.1% 的有機收入下降和感測解決方案 4.1% 的有機收入下降。

One of the key developments in the second quarter was that our end markets continued to weaken and were lower than our expectations. The most notable declines were in the China auto end market, which was down 20%; and the European auto end market, which was down 10%. Additionally, the industrial end market was down 7% in the second quarter, and the North American on-road truck market was also weaker.

第二季的關鍵進展之一是我們的終端市場持續疲軟並低於我們的預期。跌幅最顯著的是中國汽車終端市場，下降了20%；歐洲汽車終端市場下降10%。此外，第二季工業終端市場下降7%，北美公路卡車市場也疲軟。

Despite this difficult end market environment, we continued to deliver strong secular growth for the overall company. This was led by our automotive business, which outgrew its end market by 650 basis points and continued its trend of accelerating content growth. Our HVOR business outgrew its markets by 280 basis points, below its recent trend due to the timing of customer product launches. We believe our strong secular growth will be sustained into 2020, and Jeff will talk later in the call about why we have visibility into continuing this trend.

儘管終端市場環境困難，我們仍持續為整個公司帶來強勁的長期成長。這是由我們的汽車業務帶動的，該業務的成長超出了終端市場 650 個基點，並延續了內容加速成長的趨勢。由於客戶產品發布的時間安排，我們的 HVOR 業務成長超過市場 280 個基點，低於近期趨勢。我們相信，我們強勁的長期成長將持續到 2020 年，傑夫將在稍後的電話會議中談到為什麼我們有能力繼續這一趨勢。

We were highly effective in managing our margin and EPS performance in the quarter despite generating lower revenues as a result of end market weakness and facing a higher tax rate. Our Q2 adjusted operating margin of 23.2% was in line with the midpoint of our guidance, and we reported flat year-over-year EPS despite generating $30 million less revenue. This is a result of actively managing our discretionary operating expenses and generating benefits from our capital deployment program.

儘管由於終端市場疲軟和麵臨更高的稅率而導致收入下降，但我們在本季的利潤率和每股盈餘管理方面非常有效。我們第二季調整後的營業利潤率為 23.2%，與我們指導的中位數一致，儘管收入減少了 3,000 萬美元，但每股收益與去年同期持平。這是積極管理我們的可自由支配營運費用並從我們的資本部署計劃中產生效益的結果。

As part of our efforts to continue to advance our electrification initiative, we partnered with Lithium Balance in Q2 to help us deliver battery management subsystems to industrial, HVOR and material handling markets. We believe this partnership will also complement our wireless battery monitoring initiative in our auto business.

作為我們繼續推進電氣化計劃的努力的一部分，我們在第二季度與 Lithium Balance 合作，幫助我們向工業、HVOR 和物料搬運市場提供電池管理子系統。我們相信這種合作關係也將補充我們在汽車業務中的無線電池監控計劃。

Finally, our Board has authorized a $500 million repurchase of Sensata shares, which we expect to utilize over the next 12 to 24 months. We are always continuously weighing the return profile of buying back our shares against executing additional M&A opportunity. We believe that our shares are an attractive use of capital, particularly during periods where M&A transactions are not actionable.

最後，我們的董事會已授權以 5 億美元回購森薩塔股票，我們預計將在未來 12 至 24 個月內使用。我們始終不斷權衡回購股票與執行額外併購機會的報酬情況。我們相信，我們的股票是一種有吸引力的資本用途，特別是在併購交易無法採取行動的時期。

Slide 5 shows organic revenue growth by end market in the second quarter. I will begin with HVOR, which posted 1% organic revenue growth in the quarter. This was 280 basis points above an end market decline of 1.8% in the second quarter. Strong content growth from our China on-road truck business as a result of China's [fifth] legislation offset weaker end market demand. After a period of solid growth over the past 2 years, our construction and agriculture businesses declined in the quarter as customers adjusted their inventories and production to lower global demand. We continue to see very strong sales activity for our wireless hub and the high-voltage contactors we acquired from GIGAVAC. We have a number of large deals we expect to close over the next few quarters, which will help to establish the foundation for future growth.

幻燈片 5 顯示了第二季終端市場的有機收入成長。我將從 HVOR 開始，該公司本季的有機收入增長了 1%。這比第二季終端市場降幅 1.8% 高出 280 個基點。由於中國的[第五]立法，我們的中國公路卡車業務內容量強勁成長，抵消了終端市場需求的疲軟。經過過去兩年的穩健成長，我們的建築和農業業務在本季度出現下滑，因為客戶調整了庫存和生產以降低全球需求。我們繼續看到我們的無線集線器和從 GIGAVAC 購買的高壓接觸器的銷售活動非常強勁。我們預計將在未來幾季完成許多大型交易，這將有助於為未來的成長奠定基礎。

Next, our automotive business posted an organic revenue decline of 1.1%, which was 650 basis points above a 7.6% end market decline during the second quarter. As a reminder, at our Investor Day 18 months ago, we committed to delivering higher content growth in auto and we have delivered on that promise, posting competitive outgrowth versus underlying production over the past 6 quarters. The clear drivers of the secular performance in Q2 were our China auto and European auto businesses, both of which are benefiting from new legislative mandates and the launch of applications to treat gasoline exhaust systems. We also advanced our electrification initiative by winning new business on a number of subsystems for battery electric vehicles as well as further growing our electrification sales pipeline. As a result of our Q2 performance, we are lowering our projections for global automotive production for the remainder of the year, but we expect to offset much of this decline with sustained content growth.

接下來，我們的汽車業務有機收入下降了 1.1%，比第二季度終端市場下降 7.6% 高出 650 個基點。提醒一下，在18 個月前的投資者日上，我們承諾在汽車領域實現更高的內容增長，並且我們已經兌現了這一承諾，在過去6 個季度中發布了與基礎生產相比具有競爭力的增長。第二季長期業績的明顯推動因素是我們的中國汽車和歐洲汽車業務，這兩家公司都受益於新的立法授權和處理汽油排氣系統應用程式的推出。我們還透過贏得多個純電動汽車子系統的新業務以及進一步擴大我們的電氣化銷售管道來推進我們的電氣化計劃。由於我們第二季的業績，我們降低了今年剩餘時間對全球汽車產量的預測，但我們預計透過持續的內容成長可以抵消大部分下降。

Finally, I want to turn to industrial, aerospace and other end markets, which are served by our Sensing Solutions segment. For the second quarter of 2019, we posted a 4.1% organic revenue decline due to weak demand for our electrical protection products sold to industrial customers serving the appliance, HVAC and automotive markets. As a reminder, we generate just over $250 million in annual revenue from our legacy electrical protection products, which have high margins but grow in line with end production. About half of our electrical protection revenue is generated in China. These products sit pretty far back in the supply chain. As a result, we see significant inventory fluctuations in this business when end markets are volatile. In Q2, our electrical protection products generated a double-digit organic revenue decline. Much of this was driven by the end market, which we estimate was down 7% in Q2. This decline in the industrial end market was significantly greater than what we experienced last quarter. This was partially offset by growth in our aerospace business, which posted strong double-digit organic revenue growth in the quarter. We continue to see sequential PMI decline in North America, Europe and China, which is resulting in many of our industrial customers slowing down their production schedule. As a result, we are much more cautious on the demand outlook for our industrial customers for the remainder of the year, and this is reflected on our next slide.

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 年第二季度，由於向服務家電、暖通空調和汽車市場的工業客戶銷售的電氣保護產品需求疲軟，我們的有機收入下降了 4.1%。需要提醒的是，我們的傳統電氣保護產品的年收入略高於 2.5 億美元，這些產品利潤率很高，但隨著最終產量的增長而增長。我們約有一半的電氣保護收入來自中國。這些產品位於供應鏈的相當後面的位置。因此，當終端市場波動時，我們發現該業務的庫存波動很大。第二季度，我們的電氣保護產品有機收入出現兩位數下降。這很大程度上是由終端市場推動的，我們估計第二季終端市場下降了 7%。工業終端市場的降幅明顯大於上季的降幅。這部分被我們的航空航太業務的成長所抵消，該業務在本季度實現了強勁的兩位數有機收入成長。我們繼續看到北美、歐洲和中國的 PMI 連續下降，這導致我們的許多工業客戶放慢了生產計劃。因此，我們對今年剩餘時間工業客戶的需求前景更加謹慎，這反映在我們的下一張投影片中。

On Slide 6, I show in more detail how our end market expectations have changed for 2019 compared to our previous guidance. We are lowering our expectations for global auto production and now expect a decline of 5% for the full year 2019 compared to our previous expectations for the market to decline 3% to 4%. This assumes the European auto end market will decline 4% to 5% versus our previous expectation of a 4% decline. We expect that China auto end market will decline 11% to 12% compared to our previous expectation of 5% to 6% decline in China auto. Additionally, as a result of weaker markets in both our on-road and off-road businesses, we are lowering our assumptions for the HVOR end market and now expect that HVOR will decline 4% for the full year compared to our previous expectations of a 2% end market decline. Finally, we expect our industrial end market to decline 6% compared to our previous expectation for a 1% decline. Despite this end market volatility, we remain confident in our secular growth performance for 2019 and longer term. We have also made tremendous progress over the past 2 years in strengthening our position in electrification.

在投影片 6 中，我更詳細地展示了我們 2019 年的終端市場預期與先前的指導相比有何變化。我們正在降低對全球汽車產量的預期，目前預計 2019 年全年將下降 5%，而此前我們對市場的預期將下降 3% 至 4%。假設歐洲汽車終端市場將下降 4% 至 5%，而我們先前預期的是下降 4%。我們預計中國汽車終端市場將下降 11%至 12%，而我們先前預期中國汽車終端市場將下降 5%至 6%。此外，由於我們的公路和越野業務市場均疲軟，我們正在降低對 HVOR 終端市場的假設，目前預計全年 HVOR 將下降 4%，較我們先前預期的下降終端市場下降2%。最後，我們預期工業終端市場將下降 6%，而先前的預期為下降 1%。儘管終端市場波動，我們對 2019 年及更長期的長期成長表現仍充滿信心。過去兩年，我們在加強電氣化領域的地位方面也取得了巨大進展。

I'd like to now turn the call over to Jeff to talk about this in more detail. Jeff?

我現在想把電話轉給傑夫，更詳細地討論這個問題。傑夫？

Thank you, Martha. It's a pleasure to be on today's call.

謝謝你，瑪莎。很高興參加今天的電話會議。

On Slide 7, we show some of the drivers of our secular growth. We are generating solid content growth across our business as a result of these multiyear trends, and we are making investments that further position the company for long-term secular growth. While our content growth in automotive is significant, our efforts to diversify our business into the heavy vehicle, off-road, industrial and aerospace end markets has created compelling long-term growth opportunities that we are investing in and realizing. For example, in HVOR, we have outgrown the end markets by 550 basis points for the first 6 months of 2019. We are seeing content growth in the on-road truck market as new regulation drives additional safety and emissions requirements. Additionally, our off-road business is seeing content growth opportunities from the fan out of electronic controls.

在投影片 7 中，我們展示了我們長期成長的一些驅動因素。由於這些多年的趨勢，我們的業務內容正在實現穩健的成長，我們正在進行的投資將進一步為公司的長期長期成長奠定基礎。雖然我們在汽車領域的內容成長顯著，但我們將業務多元化到重型車輛、越野、工業和航空航天終端市場的努力創造了令人矚目的長期成長機會，我們正在投資和實現這些機會。例如，在 HVOR 領域，2019 年前 6 個月我們的成長速度超出了終端市場 550 個基點。隨著新法規推動了額外的安全和排放要求，我們看到公路卡車市場的內容不斷增長。此外，我們的越野業務也看到了電子控制風扇帶來的內容成長機會。

Last quarter, we spoke about our wireless gateway or vehicle area network, which represents a content driver for Sensata, as our customers look to use the data our sensors capture to enhance the safety and efficiency of their equipment. In industrial, we are seeing sensors being added for a range of requirements as customers generate better digital insights through Industry 4.0 efforts. In aerospace, we are seeing sensors being added to monitor the environment of the cabin as well as to improve the efficiency and effectiveness of flight controls. In automotive, we see similar trends and we have accelerated our outgrowth relative to end market production. Over the past 2 years, we have increased our outgrowth by 380 basis points and have grown the automotive business 570 basis points faster than end market for the first 6 months of this year.

上季度，我們談到了我們的無線網關或車輛區域網絡，它代表了森薩塔的內容驅動力，因為我們的客戶希望使用我們的感測器捕獲的數據來提高其設備的安全性和效率。在工業領域，隨著客戶透過工業 4.0 努力產生更好的數位見解，我們看到感測器被添加以滿足一系列要求。在航空航太領域，我們看到感測器被添加來監控機艙環境並提高飛行控制的效率和有效性。在汽車領域，我們看到了類似的趨勢，我們相對於終端市場生產加速了成長。過去兩年，我們的產出成長了 380 個基點，今年前 6 個月汽車業務的成長速度比終端市場快了 570 個基點。

I want to emphasize that we have high confidence in sustaining secular outgrowth in all of our businesses over the long term. Our confidence is underpinned by the strong growth and new business wins we have generated over the past 4 years. Since 2015, we have expanded our new business wins from $370 million to over $500 million last year. As a reminder, these wins represent incremental revenue for us that will be recognized over a 3- to 8-year time horizon. This long-cycle nature of our business model provides us with high level of visibility into our future content growth. While visibility into end markets remains challenging, we can confidently commit to sustaining significant end market outgrowth as a result of the business we have already secured.

我想強調的是，我們對維持所有業務的長期成長充滿信心。我們的信心源自於過去 4 年的強勁成長和新業務的勝利。自 2015 年以來，我們的新業務收入從 3.7 億美元擴大到去年的 5 億美元以上。提醒一下，這些勝利代表我們的增量收入，將在 3 到 8 年的時間範圍內得到認可。我們業務模式的長週期性質使我們能夠高度了解未來的內容成長。儘管終端市場的可見性仍然具有挑戰性，但我們可以自信地致力於透過我們已經獲得的業務來維持終端市場的顯著成長。

On Slide 8, we show the progress we have made on our electrification efforts over the past 2 years. Through internal development, partnerships and acquisitions, we have entered markets and developed solutions that position Sensata as a key player in solving mission-critical electrification challenges for our customers, and we are seeing great early returns on our investments. We have established electrification as a clear strategic imperative for our business and the initiatives we are pursuing represent large untapped markets for future growth. Over the past 2 years, we have expanded our capabilities that will allow us to access a $32 billion market opportunity over the next 10 years. These served markets are expected to grow at close to 18% per year over the next decade, and we are already closing business today related to these opportunities.

在投影片 8 中，我們展示了過去 2 年在電氣化工作中取得的進展。透過內部發展、合作夥伴關係和收購，我們已經進入市場並開發了解決方案，使森薩塔成為為客戶解決關鍵任務電氣化挑戰的關鍵參與者，並且我們看到了巨大的早期投資回報。我們已將電氣化確定為我們業務的明確策略要務，我們正在追求的舉措代表著未來成長的巨大未開發市場。在過去 2 年裡，我們擴大了我們的能力，這將使我們能夠在未來 10 年內獲得 320 億美元的市場機會。預計這些服務市場在未來十年將以每年近 18% 的速度成長，我們今天已經結束了與這些機會相關的業務。

I want to dig in some on the details of the opportunities we have listed on the slide. We spoke in detail about wireless battery monitoring last quarter, which we first introduced to investors at our Investor Day 18 months ago. Since that introduction, we have already validated the technology and are actively engaged with [S-Volt], our first customer. The solution has the potential to bring value to many of our customers by reducing their material and labor costs associated with electrified drivetrains while helping improve reliability and modularity.

我想深入了解我們在幻燈片上列出的機會的細節。上個季度我們詳細討論了無線電池監控，我們在 18 個月前的投資者日首次向投資者介紹了這項技術。自推出以來，我們已經驗證了該技術，並積極與我們的第一位客戶 [S-Volt] 合作。此解決方案有潛力為我們的許多客戶帶來價值，降低與電氣化傳動系統相關的材料和勞動力成本，同時幫助提高可靠性和模組化性。

We have also spoken about GIGAVAC as another proof point related to our progress in electrification. GIGAVAC more than doubled our content on battery electric vehicles. We are also seeing new opportunities in markets such as charging stations and energy storage.

我們也談到了 GIGAVAC，作為我們在電氣化方面取得進展的另一個證據。GIGAVAC 讓我們的純電動車內容增加了一倍以上。我們也看到充電站和儲能等市場的新機會。

From a product road map standpoint, we are developing a product that combines the functionality of a high-voltage contactor and fuse, which will further differentiate us from competitors in the market. Additionally, our products are unique in their ability to function at very high voltages, which is required to extend range and reduce charging times. We are also developing customized sensors that help customers detect thermal runaway for electric vehicles, which in many markets is being mandated over the next few years.

從產品路線圖的角度來看，我們正在開發一款結合了高壓接觸器和熔斷器功能的產品，這將進一步使我們與市場競爭對手區分開來。此外，我們的產品在非常高的電壓下運作的能力是獨一無二的，這是擴大續航里程和減少充電時間所必需的。我們也正在開發客製化感測器，幫助客戶檢測電動車的熱失控，許多市場將在未來幾年內強制執行這種要求。

Today, we announced a partnership with Lithium Balance. On Slide 9, we show in more detail the strategic rationale related to this partnership. Lithium Balance will enable Sensata to offer a more comprehensive battery management solution to customers across all of our end markets, and Sensata will leverage its extensive global sales channels and application understanding to drive broader adoption of Lithium Balance's technology. One of the more exciting markets we intend to address as we develop solutions with Lithium Balance is the energy storage market. As the world increasingly moves toward generating and storing power in a more distributed way to solve the growing grid balance issues, we believe energy storage will become more and more prevalent. An example of this is the proliferation of renewable energy sources. Lithium Balance and Sensata are poised to help solve this challenge. Lithium Balance has developed their own energy storage system that utilizes their battery management technology, and early installations already have been deployed in Europe. Additionally, as we further develop wireless battery monitoring solutions for our automotive market, Lithium Balance's hardware and software expertise will be valuable in customizing solutions for our automotive customers.

今天，我們宣布與 Lithium Balance 建立合作關係。在投影片 9 中，我們更詳細地展示了與此合作夥伴關係相關的策略原理。Lithium Balance 將使森薩塔能夠為我們所有終端市場的客戶提供更全面的電池管理解決方案，森薩塔將利用其廣泛的全球銷售管道和對應用的了解來推動 Lithium Balance 技術的更廣泛採用。在我們使用 Lithium Balance 開發解決方案時，我們打算解決的更令人興奮的市場之一是儲能市場。隨著世界越來越多地轉向以更分散的方式發電和儲存電力以解決日益嚴重的電網平衡問題，我們相信儲能將變得越來越普遍。這方面的一個例子是再生能源的擴散。Lithium Balance 和森薩塔準備協助解決這項挑戰。Lithium Balance 開發了自己的儲能係統，利用其電池管理技術，早期安裝已在歐洲部署。此外，隨著我們進一步為汽車市場開發無線電池監控解決方案，Lithium Balance 的硬體和軟體專業知識對於為我們的汽車客戶量身定制解決方案將非常有價值。

Before I turn things over to Paul, I'd like to address Slide 10 with an overview of the key messages from the quarter. We are accelerating our content growth and significantly outgrowing the end markets we serve. We have confidence in this secular growth, that it will be sustained, and we are actively investing in exciting initiatives for the long term. We delivered operating margins in line with our guidance despite the revenue shortfall we faced in the quarter. We are responding quickly and further aligning our cost base given the weakening end markets, and we are executing on value-creating capital deployment. Our M&A pipeline is active and strong; we are investing in partnerships such as Lithium Balance that will help our growth; and our Board has authorized a share repurchase program of up to $500 million, which reflects our belief in our long-term strategy, growth prospects and focus on shareholder value creation.

在將事情交給 Paul 之前，我想在幻燈片 10 上概述本季的關鍵資訊。我們正在加速內容成長，並顯著超越我們所服務的終端市場。我們對這種長期成長充滿信心，相信它將持續下去，並且我們正在積極投資於令人興奮的長期舉措。儘管我們在本季面臨收入短缺，但我們的營業利潤率仍符合我們的指導方針。鑑於終端市場疲軟，我們正在迅速做出反應並進一步調整我們的成本基礎，並且我們正在執行創造價值的資本部署。我們的併購管道活躍且強大；我們正在投資 Lithium Balance 等合作夥伴關係，這將有助於我們的發展；我們的董事會已批准一項高達 5 億美元的股票回購計劃，這反映了我們對長期策略、成長前景和對股東價值創造的關注的信念。

I'll now turn the call back over to Paul to review the second quarter results in more detail and to provide guidance for the third quarter and full year 2019. Paul?

現在，我將把電話轉回給 Paul，以更詳細地審查第二季的業績，並為 2019 年第三季和全年提供指導。保羅？

Thank you, Jeff. Key highlights for the second quarter, as shown on Slide 11, include revenue of $883.7 million in the quarter, a decrease of 3.3% from the second quarter of 2018. Changes in foreign currency decreased revenues by about 1%. The net effect of our valves divestiture and the acquisition of GIGAVAC decreased revenues by 0.7% year-over-year. The net result was 1.6% organic revenue decline in the quarter. Adjusted operating income was $205.1 million in the quarter, a decrease of 6.5% compared to the second quarter of 2018, due primarily to the net effect of acquisitions and divestitures, net productivity headwinds partly related to scaling new product launches and higher tariffs. This was partially offset by lower operating expenses and lower variable compensation. Adjusted net income was $150.4 million in the quarter, a decrease of 6.5% compared to the second quarter of 2018. Adjusted EPS was $0.93 in the second quarter, flat compared to the prior year quarter which reflects a $0.07 decline in operational performance, a $0.06 decline for the net effect of acquisitions and divestitures and a $0.07 increase from foreign currency as well as a $0.06 increase from share repurchases.

謝謝你，傑夫。如投影片 11 所示，第二季的主要亮點包括該季度營收為 8.837 億美元，較 2018 年第二季下降 3.3%。外幣變動使收入減少約 1%。我們的閥門剝離和收購 GIGAVAC 的淨影響使收入年減 0.7%。本季的最終結果是有機收入下降 1.6%。本季調整後營業收入為2.051 億美元，與2018 年第二季相比下降6.5%，主要是由於收購和資產剝離的淨影響、淨生產力不利因素（部分與擴大新產品推出規模和關稅上漲有關）。這被較低的營運費用和較低的可變薪酬部分抵消。該季度調整後淨利潤為 1.504 億美元，較 2018 年第二季下降 6.5%。第二季調整後每股收益為 0.93 美元，與去年同期持平，反映出營運表現下降 0.07 美元、收購和資產剝離的淨效應下降 0.06 美元、外幣增加 0.07 美元以及較去年同期增加 0.06 美元。 股票回購。

Now I'd like to comment on the performance of our 2 business segments in the second quarter 2019. I will start with Performance Sensing on Slide 12. Our Performance Sensing business reported revenues of $644.5 million for the second quarter, a decrease of 4.7% compared to the same quarter last year, reflecting both the negative impact from foreign currency of about 1% and the net effect of acquisitions and divestitures which reduced revenue by 3%. Excluding these factors, Performance Sensing reported an organic revenue decline of 0.7% compared to the prior year.

現在我想談談我們2019年第二季兩個業務部門的業績。我將從投影片 12 上的效能感知開始。我們的績效感測業務第二季度營收為 6.445 億美元，比去年同期下降 4.7%，既反映了約 1% 的外匯負面影響，也反映了收購和剝離導致收入減少的淨影響3%。排除這些因素，Performance Sensing 報告的有機收入與前一年相比下降了 0.7%。

Our HVOR business reported organic revenue growth of 1% in the second quarter. HVOR once again had the strongest revenue growth in the segment and outpaced its aggregate end market by 280 basis points due to the solid underlying content growth in the business. Our automotive business reported an organic revenue decline of 1.1% in the second quarter but outpaced the end market by 650 basis points. Our content growth benefited from new legislation in China and Europe, particularly for sensors used on gas particulate filters that clean gas powertrain exhaust.

我們的 HVOR 業務第二季有機收入成長 1%。由於業務基礎內容成長強勁，HVOR 再次實現了該細分市場中最強勁的營收成長，並超過其整體終端市場 280 個基點。我們的汽車業務第二季有機收入下降 1.1%，但比終端市場高出 650 個基點。我們的內容成長受益於中國和歐洲的新立法，特別是用於清潔燃氣動力總成廢氣的氣體顆粒過濾器的感測器。

Performance Sensing operating income was $168.1 million, a decrease of 10.3% as compared to the prior year. Performance Sensing profit as a percent of revenue was 26.1% in the second quarter, a decline of 160 basis points from the same quarter last year. The decline in segment operating income and margin was primarily driven by the net effect of acquisitions and divestitures, productivity headwinds related -- partly related to scaling new products and higher tariffs.

Performance Sensing 營業收入為 1.681 億美元，較上年下降 10.3%。第二季Performance Sensing利潤佔營收的百分比為26.1%，比去年同期下降160個基點。部門營業收入和利潤率的下降主要是由收購和剝離的淨效應以及相關的生產力不利因素推動的——部分與擴大新產品和提高關稅有關。

As shown on Slide 13, Sensing Solutions reported revenues of $239.2 million in the second quarter, an increase of 0.7% as compared to the same quarter last year. On an organic basis, factoring in a negative impact from foreign currency of 1% and a positive contribution from the acquisition of GIGAVAC of 5.8%, we reported an organic revenue decline of 4.1%. This decline was primarily due to the slowdown in global industrial demand, particularly in China. We also saw significant year-over-year decline in our semiconductor business. This was partially offset by double-digit organic revenue growth in our aerospace business.

如投影片 13 所示，Sensing Solutions 第二季營收為 2.392 億美元，比去年同期成長 0.7%。在有機基礎上，考慮到外幣 1% 的負面影響和收購 GIGAVAC 5.8% 的正面貢獻，我們報告有機收入下降了 4.1%。這一下降主要是由於全球工業需求放緩，特別是中國。我們也看到半導體業務較去年同期大幅下降。這被我們的航空航太業務兩位數的有機收入成長部分抵消。

Sensing Solutions operating income was $77.1 million in the second quarter, a decrease of 2.5% from the same quarter last year. The decline in operating income was primarily the result of lower volumes and operating leverage in our core business, somewhat offset by the acquisition of GIGAVAC. Segment margins declined primarily due to the GIGAVAC acquisition as we continue to invest for significant long-term growth in electrification. Corporate and other costs not included in segment operating income were $45.4 million in the second quarter, down approximately $8.1 million year-over-year, largely due to lower variable compensation expense. Excluding charges added back to our non-GAAP results, corporate and other costs were $37.8 million in the second quarter of 2019.

感測解決方案第二季營業收入為7,710萬美元，較去年同季下降2.5%。營業收入下降主要是由於我們核心業務的銷售和營業槓桿下降，但收購 GIGAVAC 在一定程度上抵消了營業收入的下降。部門利潤率下降主要是由於收購 GIGAVAC，因為我們繼續投資以實現電氣化領域的長期顯著成長。第二季不計入部門營業收入的企業和其他成本為 4,540 萬美元，年減約 810 萬美元，主要是由於可變薪酬費用減少。不包括計入非 GAAP 業績的費用，2019 年第二季的公司成本和其他成本為 3,780 萬美元。

Slide 14 shows Sensata's second quarter 2019 non-GAAP results. Adjusted gross profit declined 7.1% year-over-year to $313 million, primarily due to the negative effect from acquisitions and divestitures, net productivity headwinds partly due to the scaling of new products and higher tariffs. R&D costs were lower year-over-year by $1.3 million but consistent as a percentage of revenue due primarily to changes in foreign currency. SG&A costs were $8.5 million favorable year-over-year due to lower variable compensation costs, foreign currency and cost controls. As a result, adjusted operating income was down 6.5% compared to the prior year quarter. Our tax rate, served on this line as a percent of adjusted profit before tax, was up 110 basis points year-over-year. We expect our full year tax rate to be approximately 9%, slightly below our previous guidance of 9.3%. Finally, adjusted EPS was flat as compared to the second quarter of 2018 as the decline in adjusted net income was offset by the benefit of share repurchases.

幻燈片 14 顯示了森薩塔 2019 年第二季非 GAAP 業績。調整後毛利年減 7.1%，至 3.13 億美元，主要是由於收購和資產剝離的負面影響，以及新產品規模擴大和關稅上漲造成的淨生產力不利因素。研發成本年減 130 萬美元，但佔收入的百分比保持一致，這主要是由於外幣變化。由於變動薪酬成本降低、外匯和成本控制，SG&A 成本較去年同期有利 850 萬美元。因此，調整後營業收入與去年同期相比下降了 6.5%。我們的稅率（以調整後稅前利潤的百分比計算）比去年同期上升了 110 個基點。我們預計全年稅率約為 9%，略低於我們先前 9.3% 的指引值。最後，調整後每股盈餘與 2018 年第二季持平，因為調整後淨利的下降被股票回購的收益所抵銷。

Now let me turn to our guidance for the full year 2019, as shown on Slide 15. Our updated guidance for the full year 2019 now anticipates the lower end market outlook that we shared with you earlier in the call. As a result, we expect revenue between $3.46 billion to $3.52 billion for the full year 2019, representing a decline between 2% and 0%. We expect foreign currency to decrease revenues by approximately $15 million, and the net effect of acquisition -- and the net effect of our acquisition of GIGAVAC and our divestiture of valves will reduce revenues by approximately $5 million. Our organic revenue guide represents a decline of 1% to 1% growth for the full year. We expect adjusted operating income between $807 million and $823 million, which would represent a decline of 1% to 3%. On the bottom line, we expect adjusted net income between $596 million and $612 million and adjusted earnings per share between $3.67 and $3.77 for the full year 2019, which represents growth between 1% and 3%.

現在讓我談談我們對 2019 年全年的指導，如幻燈片 15 所示。我們更新後的 2019 年全年指引現在預測了我們在電話會議早些時候與您分享的低端市場前景。因此，我們預計 2019 年全年營收將在 34.6 億美元至 35.2 億美元之間，下降 2% 至 0%。我們預計外匯將導致收入減少約 1500 萬美元，而收購的淨效應以及我們收購 GIGAVAC 和剝離閥門的淨效應將導致收入減少約 500 萬美元。我們的有機收入指南顯示全年成長下降 1% 至 1%。我們預計調整後營業收入將在 8.07 億美元至 8.23 億美元之間，下降 1% 至 3%。總體而言，我們預計 2019 年全年調整後淨利潤將在 5.96 億美元至 6.12 億美元之間，調整後每股收益將在 3.67 美元至 3.77 美元之間，成長 1% 至 3%。

We mentioned earlier that we're implementing additional actions to streamline and align our cost structure to the lower market demand as well as to improve productivity. These actions will include our voluntary retirement program, further site consolidation and other restructuring actions to further reduce our cost. This will result in approximately $25 million of incremental restructuring costs, which will be added back to our non-GAAP financials. Some of these costs were already incurred in Q2, while others will be reflected over the next 2 quarters. On average, we would expect about a 2-year payback for the actions we are taking. We will see some savings in 2019 and substantially more savings in 2020. A large portion of the severance costs will be funded this year and will lower our free cash flow in 2019.

我們之前提到，我們正在實施額外的行動，以簡化和調整我們的成本結構，以適應較低的市場需求，並提高生產力。這些行動將包括我們的自願退休計畫、進一步的工廠整合和其他重組行動，以進一步降低我們的成本。這將導致約 2500 萬美元的增量重組成本，這些成本將計入我們的非 GAAP 財務數據中。其中一些成本已在第二季度產生，而其他成本將在接下來的兩個季度反映出來。平均而言，我們預計我們正在採取的行動將在兩年左右得到回報。我們將在 2019 年看到一些節省，並在 2020 年看到更多的節省。很大一部分遣散費將在今年得到資助，這將降低我們 2019 年的自由現金流。

We expect to generate free cash flow of approximately $460 million to $480 million. This free cash flow guidance assumes annual capital expenditures of approximately $150 million to $170 million for the full year 2019. The 2 primary drivers of our lower free cash flow guidance are lower net income reflected in our guidance as well as the incremental cash outflows associated with the restructuring actions I just mentioned.

我們預計將產生約 4.6 億至 4.8 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 1.5 億至 1.7 億美元。我們較低的自由現金流指引的兩個主要驅動因素是我們的指引中反映的較低的淨利潤以及與我剛才提到的重組行動相關的增量現金流出。

On Slide 16, I show our financial guidance for the third quarter of 2019. Overall, we expect to report revenues between $847 million and $871 million, representing a reported revenue decline between 0% and 3%. At the midpoint of our guidance, we expect that foreign currency will increase revenues year-over-year by approximately $1 million in the third quarter of 2019, and the net effect of acquisitions and divestitures will further increase net revenues by approximately $5 million. Excluding the impact of foreign currency and the net effect of acquisitions and divestitures, we expect to report an organic revenue decline of 1% to 4% in the third quarter.

在投影片 16 上，我展示了我們 2019 年第三季的財務指引。總體而言，我們預計報告收入在 8.47 億美元至 8.71 億美元之間，報告收入將下降 0% 至 3%。在我們指引的中點，我們預計 2019 年第三季外幣營收將年增約 100 萬美元，收購和剝離的淨效應將進一步使淨收入增加約 500 萬美元。排除外匯影響以及收購和剝離的淨影響，我們預計第三季有機收入將下降 1% 至 4%。

Our current fill rate is approximately 88% of the revenue guidance midpoint for the third quarter. We expect to report adjusted operating income between $196 million and $202 million. On the bottom line, we expect to report adjusted net income between $143 million and $149 million, which would represent a decline of 5% at the midpoint of our guidance. We expect to report adjusted EPS between $0.88 and $0.92, which will represent a decline of 3% to growth of 1%.

我們目前的填充率約為第三季營收指引中位數的 88%。我們預計調整後的營業收入將在 1.96 億美元至 2.02 億美元之間。總體而言，我們預計調整後淨利潤將在 1.43 億美元至 1.49 億美元之間，這意味著我們的指導中位數將下降 5%。我們預計調整後每股收益將在 0.88 美元至 0.92 美元之間，即下降 3% 到增長 1%。

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. We expect underlying production in our end markets remain weak for the balance of 2019, and we are taking various actions to quickly streamline and align our cost structure to the weak market demand we are expecting. Finally, in terms of capital deployment, we will continue to take a balanced, returns-driven approach to create the most long-term value for our shareholders. An example of this approach is reflected in our decision to repurchase up to $500 million of Sensata stock.

我想用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。我們預計 2019 年終端市場的基礎生產仍然疲軟，我們正在採取各種行動來快速簡化成本結構，使我們的成本結構適應我們預期的疲軟市場需求。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，為股東創造最長期的價值。我們決定回購高達 5 億美元的森薩塔股票，就體現了這種方法的一個例子。

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. Keith, please assemble the Q&A roster.

謝謝。Keith，請整理問答名單。

(Operator Instructions) And this morning's first question comes from Jed Dorsheimer with Canaccord Genuity.

（操作員說明） 今天早上的第一個問題來自 Canaccord Genuity 的 Jed Dorsheimer。

I guess first one, Martha, given the decline particularly in China, while overall unit volumes are down, I would assume that the dollar content per unit has actually increased as a function of decline. I was wondering if you could provide a bit of an update in terms of content today and then how the market changes and dynamics have kind of changed your -- what we should expect as we look out for content growth.

我想第一個，瑪莎，考慮到尤其是在中國的下降，雖然總體單位銷量下降，但我認為每單位的美元含量實際上隨著下降而增加。我想知道您是否可以提供一些有關今天內容的最新信息，以及市場變化和動態如何改變了您——在我們關注內容增長時我們應該期待什麼。

Yes, Jed. It's a good point and it's a really important observation. So despite a pretty precipitous drop in overall production in China, which we've now seen for a few quarters, our launches continue to be on track. If we go back to our Investor Day at the end of 2017, we talked about increasing our content per vehicle in China by 50%. We're actually running ahead of that on a linear basis, so the content is doing quite well. If you look at our overall growth in China, we were actually just flat despite -- in China broadly despite these really tough end markets that we're facing.

是的，傑德。這是一個很好的觀點，也是一個非常重要的觀察。因此，儘管中國的總體產量急劇下降（我們已經看到幾個季度了），但我們的產品發布仍在正常進行。如果我們回到 2017 年底的投資者日，我們談到將中國每輛車的內容增加 50%。我們實際上是在線性基礎上領先的，所以內容做得很好。如果你看看我們在中國的整體成長，我們實際上只是持平，儘管在中國大體上，儘管我們面臨著這些非常艱難的終端市場。

We have launched National VI content. That was an important thing that had to happen in 2019. So that is very much on track. Having said that, the market now is dealing with legacy National V content vehicles, and that's making the inventory situation challenging from an end market perspective. But we're doing very well on the content per vehicle front, continue to be driven by National VI changes which are in place and more of those launches ahead of us. Take rates on TPMS are also helping to drive growth. Electrification, really important in China. Some of the wins that we're alluding to are happening in China, which is now the fastest-growing NEV market in auto. So all of that bodes well for our content growth.

我們推出了國六內容。這是 2019 年必鬚髮生的一件重要事情。所以這一切都步入正軌了。話雖如此，市場現在正在處理傳統的國五內容車輛，從終端市場的角度來看，這使得庫存狀況面臨挑戰。但我們在每輛車的內容方面做得非常好，繼續受到已經實施的國六變化以及我們即將推出的更多內容的推動。TPMS 的使用率也有助於推動成長。電氣化，對中國來說非常重要。我們提到的一些勝利發生在中國，目前是汽車領域成長最快的新能源汽車市場。因此，所有這些都對我們的內容成長來說是個好兆頭。

Great. That's helpful. I guess in the energy storage area that you're looking at increasing your exposure to with Lithium Balance and other growth in that area, I was wondering if you might be able to maybe give us a little bit more deeper perspective on what we should expect in terms of your moves in that particular market.

偉大的。這很有幫助。我想在能源儲存領域，您正在考慮透過鋰平衡和該領域的其他成長來增加您的投資，我想知道您是否能夠為我們提供更深入的視角，讓我們了解我們應該期待什麼就您在該特定市場的舉動而言。

For a minute, let's -- Jeff has been working this one closely. He's going to talk to you about that.

傑夫一直在密切研究這個問題。他會和你談談這件事。

Yes. So I think it's a great question. The opportunity around energy storage we believe will continue to grow quite rapidly. We mentioned in the script that Lithium Balance already has a solution that they're bringing to market in that area. They're a fairly small company, however. And so as we engage with them and continue to develop our partnership, we will certainly take their technology and go to our customers to evaluate continued opportunities to be able to pursue as that market continues to evolve. And so that's only one of the many areas that we see as being an opportunity associated with Lithium Balance. We also mentioned that it will help us in terms of battery management on a wired basis within our industrial and HVOR markets, and it will also complement the wireless battery monitoring activity that we have that's been an ongoing organic effort for us in the automotive market.

是的。所以我認為這是一個很好的問題。我們相信，圍繞儲能的機會將繼續快速成長。我們在腳本中提到，Lithium Balance 已經有一個解決方案，他們正在該領域將其推向市場。然而，他們是一家相當小的公司。因此，當我們與他們接觸並繼續發展我們的合作夥伴關係時，我們肯定會利用他們的技術並去找我們的客戶評估隨著市場不斷發展而能夠追求的持續機會。因此，這只是我們認為與 Lithium Balance 相關的眾多領域之一。我們還提到，它將在工業和 HVOR 市場中的有線電池管理方面為我們提供幫助，並且還將補充我們在汽車市場上持續不斷的有機努力的無線電池監控活動。

Great. That's helpful. One more question, then I'll jump back in the queue. Martha, it looks as if you've done a really good job in terms of shifting over to a more variable cost model, which should help you through this downturn if it becomes a prolonged one. It also looks as if the shift to electrification is happening sooner. So I was wondering if you might be able to provide -- as you steward this company, provide a perspective on how you might be able to sort of shift the business away from the more unit economics that it is still heavily reliant upon on the ICE-based vehicles and how you're thinking about the electric as well as automated trends in the marketplace.

偉大的。這很有幫助。還有一個問題，然後我會跳回隊列。瑪莎，看來您在轉向更具可變成本的模式方面做得非常好，如果經濟低迷變得長期，這應該可以幫助您度過這次低迷。看起來向電氣化的轉變似乎正在更快發生。所以我想知道，當你管理這家公司時，你是否能夠提供一個觀點，說明你如何能夠將業務從仍然嚴重依賴 ICE 的單位經濟中轉移出來。和自動化趨勢。

Yes. I think there are really 3 dimensions. First, if we look at our overall automotive business, it's making sure that we are positioned very well and winning in applications that are growing with some of the disruptions happening in that market, electrification being #1 for Sensata. We also see opportunities when we look at what's happening from a connected perspective in the automotive business.

是的。我認為確實有3個維度。首先，如果我們審視我們的整體汽車業務，就會發現我們處於非常有利的位置，並在隨著該市場發生的一些顛覆而不斷增長的應用中獲勝，其中電氣化是森薩塔的第一大業務。當我們從互聯的角度看待汽車產業正在發生的事情時，我們也看到了機會。

I'd say just as important though is the work that we're doing beyond auto. And it has 2 impacts: one, it brings secular growth into other end markets; and two, it's helping to diversify our business. So you can see at the current run rate now we've dropped below the 60% mark in terms of our automotive exposure, and so we're enjoying secular content in areas like material handling and HVAC and aerospace. And that's really helping to strengthen our overall business model. So really appreciate the question. It's a very important dynamic at Sensata.

我想說同樣重要的是我們在汽車之外所做的工作。它有兩個影響：一是為其他終端市場帶來了長期成長；二是它為其他終端市場帶來了長期成長。第二，它有助於我們的業務多元化。所以你可以看到，按照目前的運行率，我們在汽車領域的曝光率已經降至 60% 以下，因此我們在材料處理、暖通空調和航空航天等領域享受著世俗內容。這確實有助於加強我們的整體業務模式。所以非常感謝這個問題。這是森薩塔的一個非常重要的動態。

And the next question comes from Wamsi Mohan with Bank of America Merrill Lynch.

下一個問題來自美銀美林的瓦姆西·莫漢 (Wamsi Mohan)。

Paul, thanks for the color on restructuring. I was wondering if you could just maybe give us a little more insight into sort of what segments, regions, end markets these actions are being taken in. And how much of these savings will actually flow through the bottom line versus reinvested in the business, particularly in 2019? And then I have a follow-up.

保羅，感謝您對重組的關注。我想知道您能否讓我們更深入地了解這些行動正在哪些細分市場、地區、終端市場進行。與再投資於業務相比，這些節省的資金中有多少實際上會流入利潤，特別是在 2019 年？然後我有一個後續行動。

So the areas where the restructuring is going to impact the business is actually across the globe. So many of the markets which are weaker, we are taking actions to improve the cost structure. And so you would see the savings coming across all parts of the business for Sensata. The savings, we're going to see a little bit of that savings in 2019. Most of the savings will come through as we're looking to restructure the organization to be more productive, and so looking to realize most of that savings as we enter into 2020.

因此，重組將影響業務的領域實際上是全球範圍內的。許多市場表現疲軟，我們正在採取行動改善成本結構。因此，您將看到森薩塔所有業務部門都實現了節省。節約方面，我們將在 2019 年看到一部分節約。大部分節省將透過我們尋求重組組織以提高生產力來實現，因此希望在進入 2020 年時實現大部分節省。

Okay. And Martha or Jeff, you had very strong business wins over the last few years. How are business wins tracking here in this much weaker sort of auto OEM end market? And particularly, as it pertains to any weak trends in China, which you alluded to on the call, how are you thinking about the risk of too many players and being able to underwrite the strength from design wins longer term?

好的。瑪莎或傑夫，過去幾年你們取得了非常強勁的業務勝利。在這個疲軟得多的汽車原始設備製造商終端市場中，業務進展如何？特別是，由於它與您在電話會議中提到的中國的疲弱趨勢有關，您如何考慮參與者過多的風險以及如何能夠長期保障設計勝利的優勢？

Good question, Wamsi. So we talk about the fact that the secular trends that are impacting the business continue to track in a very strong way. Regulation, electrification, smart, connected, autonomy, all of these are very good for Sensata, and it's really resulted in an increase in our overall NBO wins over the last several years. We mentioned that in 2015, we won $370 million of NBOs. Last year, it was $500 million. We're tracking very nicely toward a good amount of wins during 2019 as well. And the pipeline continues to be quite full, so there's lots of opportunity and we're engaging with customers to make sure that we engage with them to get those wins behind us because they are ultimately what drives that secular growth for us going forward.

好問題，瓦姆西。因此，我們談論這樣一個事實：影響業務的長期趨勢繼續以非常強勁的方式發展。監管、電氣化、智慧、互聯、自主，所有這些對森薩塔來說都非常有利，並且確實導致了我們在過去幾年中 NBO 總體勝利的增加。我們提到2015年我們贏得了3.7億美元的NBO。去年，這一數字為 5 億美元。我們在 2019 年也取得了許多勝利。而且管道仍然很滿，所以有很多機會，我們正在與客戶合作，以確保我們與他們合作以取得這些勝利，因為他們最終是推動我們未來長期成長的動力。

And then, Wamsi, in terms of the number of players, just the segmentation of our end markets is really important as we see the dynamics play out. And that's particularly true in China. That's been a discipline now that we've been observing for as long as we've been in the automotive market in China, just given the number of players that are there.

然後，Wamsi，就參與者數量而言，隨著我們看到動態的發揮，我們終端市場的細分非常重要。在中國尤其如此。自從我們進入中國汽車市場以來，這一直是我們一直在遵守的紀律，只是考慮到那裡的參與者數量。

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。

A quick follow-up on the auto outgrowth accelerating here. And just given some of these changing regulations in China and Europe, I guess is the recent pace sustainable? Is there another leg on the horizon of outgrowth you see? Would just love to get your thoughts on kind of the content pipeline over the next 12 to 18 months.

這裡是對汽車成長加速的快速跟進。鑑於中國和歐洲不斷變化的法規，我想最近的步伐是否可持續？你看到的增長的地平線上是否還有另一條腿？我很想了解您對未來 12 到 18 個月內內容管道的想法。

Yes. So just to sort of level set in auto, in the first quarter, we had outgrowth of about 490 basis points, 650 in the second. So year-to-date, 570. We're feeling good about that trend continuing not only through 2019 but beyond as well. And we've talked about the number of opportunities that are really driving that: Euro 6, NS VI in China, a number of different regulations associated with fuel evaporation requirements, electrified platforms. So there are dozens of opportunities. I think that's the most important aspect to really zero in on. It's not just 1 or 2 different things that are creating opportunity for the company. And as we continue to expand our capability base, it then multiplies into other areas, so the TPMS opportunity as it fanned out through Europe and now into China and then eventually into HVOR. And so something Sensata does really well is take those capabilities that we've developed for one end market to solve a challenge and then fan it out over time. So we feel quite confident and ultimately that the trends that we see and the opportunity, we'll continue to see that outgrowth.

是的。因此，就汽車產業設定的水平而言，第一季我們的成長約為 490 個基點，第二季為 650 個基點。今年迄今為止，570。我們對這一趨勢感到滿意，這種趨勢不僅持續到 2019 年，而且還會持續下去。我們已經討論了真正推動這一趨勢的機會數量：歐 6、中國的 NS VI、與燃料蒸發要求、電氣化平台相關的許多不同法規。所以有幾十個機會。我認為這是真正歸零的最重要的方面。為公司創造機會的不僅是一兩件不同的事情。隨著我們不斷擴大我們的能力基礎，它將擴展到其他領域，因此 TPMS 機會從歐洲擴散到中國，然後最終進入 HVOR。因此，森薩塔做得非常好的一件事就是利用我們為終端市場開發的功能來解決挑戰，然後隨著時間的推移將其展開。因此，我們非常有信心，最終我們看到的趨勢和機會，我們將繼續看到這種成長。

All right. Great. And then maybe to switch gears a bit and as a follow-up. If we look at the Performance Sensing margin, which we think held up fairly well given some of the end market deterioration, can you just talk about some of the cost levers you are pulling and have to pull given, a, you're scaling new product launches; but also b, you've got some restructuring initiatives taking place in -- on the horizon here?

好的。偉大的。然後也許會稍微改變一下態度，作為後續行動。如果我們看一下性能感測利潤率，考慮到終端市場的一些惡化，我們認為該利潤率保持得相當好，您能否談談您正在拉動和必須拉動的一些成本槓桿，a，您正在擴展新的規模產品發布；而且b，你們即將採取一些重組措施？

The Performance Sensing business, I think you've characterized it well. I think the scaling of the new products is an intense process that we've been talking about for a while. And so we see good growth in those areas. And then to offset some of the weakness we've seen in some of the more mature products is impacting our operating leverage that we would expect to achieve and realize. Cost reduction is all across the P&L. It's driving better productivity in our manufacturing process. It's leaning out and streamlining our overhead costs, all with the intention of continuing to sustain and drive margin improvement in that business over time.

我認為您已經很好地描述了性能感測業務。我認為新產品的擴展是一個激烈的過程，我們已經討論了一段時間了。因此，我們看到這些領域的良好成長。然後，為了抵消我們在一些更成熟的產品中看到的一些弱點，正在影響我們期望實現和實現的營運槓桿。成本降低貫穿損益表。它提高了我們製造過程的生產力。它正在精簡並精簡我們的間接成本，所有這些都是為了隨著時間的推移繼續維持和推動該業務的利潤率提高。

And the next question comes from Amit Daryanani with Evercore.

下一個問題來自 Evercore 的 Amit Daryanani。

Two questions for me as well. First is on GIGAVAC. Could you maybe give us a sense on the revenue opportunity you have today as we think about this over the next 2 to 3 years? And just from an investment perspective, could you quantify how much the headwinds in the Sensing Solutions margins from the investments you're making for GIGAVAC for the revenue opportunity ahead?

也有兩個問題問我。首先是 GIGAVAC。當我們考慮未來 2 到 3 年時，您能否讓我們了解您今天擁有的收入機會？僅從投資角度來看，您能否量化您為 GIGAVAC 進行的投資對未來收入機會帶來的感測解決方案利潤的阻力有多大？

Yes. I think the business, when we announced at the time of the acquisition, running around something like $90 million in revenue and growing very strong double digits, like 20% to 30%. But that small base is -- it was great. What really compelled us to follow on the transaction was the opportunity horizon. We talked about a $300 million sales pipeline already developed in auto alone for the high-voltage contactors. And we've since extended that now to end markets like HVOR and material handling. This play that we're talking about with Lithium Balance and the opportunity it brings us into an energy storage system also allows us to bring high-voltage contactor content into a very large end market. So it's really important. We talk about it as being a strategic imperative at Sensata. That means it's a must-do and it's all opportunity-based. I think relative to Sensata -- Sensing Solutions margins, the investments that we're making in GIGAVAC is largely to [tool] that portfolio for the automotive market. So most of that investment you're seeing inside of the Performance Sensing segment.

是的。我認為，當我們宣布收購時，該業務的收入約為 9,000 萬美元，並且以非常強勁的兩位數成長，例如 20% 到 30%。但那個小基地是——它很棒。真正促使我們跟進交易的是機會視野。我們談到了僅在汽車領域就已經為高壓接觸器開發的 3 億美元銷售管道。此後，我們現已將其擴展到 HVOR 和物料搬運等終端市場。我們正在談論的 Lithium Balance 的這種玩法以及它為我們帶來進入儲能係統的機會，也使我們能夠將高壓接觸器內容帶入一個非常大的終端市場。所以這真的很重要。我們將其視為森薩塔的戰略要務。這意味著這是必須做的事情，而且都是基於機會的。我認為相對於森薩塔感測解決方案的利潤率，我們在 GIGAVAC 上的投資主要是為了[工具]汽車市場的產品組合。因此，您看到的大部分投資都在性能感測領域。

Got it. Got it. And then I guess just on the free cash flow run rate for the back half -- and I know that you guys updated the full year guide for free cash flow. But you expected to do something like $300 million in the back half of the year versus $170 million I think in the first half. And H2 2019 guide -- implied guide, I should say, is up year-over-year as well. Just can you just touch on the levers that can get you to this free cash flow ramping up in the back half of the year?

知道了。知道了。然後我猜想只是後半段的自由現金流運行率——我知道你們更新了自由現金流的全年指南。但你預計下半年會投入 3 億美元，而我認為上半年會投入 1.7 億美元。2019 年下半年指南－我應該說，隱含指引也逐年上升。您能談談可以讓您在今年下半年實現自由現金流增加的槓桿嗎？

Well, similar to what we've seen in the past, second half cash flow is stronger than the first half. We're going to continue to invest in capital, but the rate this year is more level set than it has in the past. So more balanced quarter-by-quarter in terms of CapEx, then continued improvement in working capital, continued improvement in driving down our receivables. There's linearity improvement in the fourth quarter. What we typically see, sort of revenues are more flat month-to-month. So we typically see a much better cash flow in the second half than the first half. So I feel pretty confident. If you look at our operating cash flow, the A&I improves throughout the second half, more aligned with 100% conversion. So I feel pretty good about our ability to do that. We're going to be at our -- the restructuring that we're taking, the funding of that will happen mostly in the second half, so that will be a drag. And also the change that we talked about in terms of the profit will be a drag from where we thought we're going to be. But all in all, I think it's very achievable.

嗯，與我們過去看到的類似，下半年的現金流比上半年更強。我們將繼續投資資本，但今年的利率比過去更穩定。因此，資本支出逐季更加平衡，然後營運資本持續改善，應收帳款持續下降。第四季的線性度有所改善。我們通常看到的是，每個月的收入都比較持平。因此，我們通常會看到下半年的現金流比上半年好得多。所以我覺得還蠻有信心的。如果你看一下我們的營運現金流，你會發現 A&I 在整個下半年都有所改善，更符合 100% 的轉換率。所以我對我們做到這一點的能力感到非常滿意。我們將進行我們正在進行的重組，其融資大部分將在下半年進行，所以這將是一個拖累。而我們談到的利潤方面的變化也將拖累我們的預期。但總而言之，我認為這是非常可以實現的。

(Operator Instructions) And our next question comes from Samik Chatterjee with JP Morgan.

（操作員說明）我們的下一個問題來自摩根大通的 Samik Chatterjee。

Martha, just wanted to get your thoughts on the business outlook but in a different -- on the outgrowth but in a different aspect, on the market share opportunities that you're seeing both organically and inorganically. Often when the industry volumes do get challenging, some of the smaller players do struggle. So when you're looking at this tough environment, are you looking at some of the organic -- how you're thinking what the organic opportunity is as well as the M&A pipeline?

瑪莎，只是想聽聽您對業務前景的看法，但從不同的角度——對增長的看法，但從不同的方面，對您所看到的有機和無機的市場份額機會的看法。通常，當行業規模確實面臨挑戰時，一些規模較小的參與者確實會陷入困境。因此，當你面對這個艱難的環境時，你是否會專注於一些有機的機會——你如何思考有機機會以及併購管道？

Yes. We always have a mindset when markets get tough that we're going to get stronger, and it really is around the activation that you make, Samik. There are a number of things that happen. Yes, more marginal competitors struggle to compete. We're very focused on maintaining the value that we bring to customers but also making sure that we follow through on commitments for launch, new product quote and that serves us really, really well. So we've continued to see nice share gains, most of that coming through new content in new applications, and that will continue. We're very disciplined in our capital allocation process, so keeping an eye on M&A valuations is important, making sure that we have the optionality to buy back shares. And so given tougher markets, we would expect to see valuations get more attractive and interesting over time. And so that's part of making sure we have the optionality to do what is best for our shareholders in terms of creating returns.

是的。當市場變得艱難時，我們始終抱持著一種心態，那就是我們會變得更強大，而這確實取決於您的激活，Samik。發生了很多事情。是的，更多的邊緣競爭對手正在努力競爭。我們非常注重維護為客戶帶來的價值，同時也確保我們履行發布、新產品報價的承諾，這對我們來說真的非常非常好。因此，我們繼續看到不錯的份額增長，其中大部分來自新應用程式中的新內容，並且這種情況將繼續下去。我們在資本配置過程中非常嚴格，因此密切注意併購估值非常重要，以確保我們可以選擇回購股票。因此，鑑於市場情況更加嚴峻，我們預計隨著時間的推移，估值會變得更具吸引力和吸引力。因此，這是確保我們可以選擇在創造回報方面為股東做最好的事情的一部分。

Perfect. And If I can just follow up on the China automotive market. We understand the outlook is not great here. But in your discussions with the OEMs, what are you hearing in terms of what can get that market to stabilize or potentially like return to growth maybe next year? Are there any policy actions? Anything that you're hearing could potentially help on that front?

完美的。如果我能跟進中國汽車市場。我們知道這裡的前景不太好。但在您與原始設備製造商的討論中，您聽到什麼可以讓市場穩定或可能在明年恢復成長？有政策行動嗎？您聽到的任何消息可能對這方面有所幫助嗎？

Yes. We have been spending a ton of time on China, but both myself and Jeff have actually been on the ground in China over the past few months trying to get a sense for exactly that. When you look at it from a policy perspective, the incentive and stimulus put in place so far have been fairly municipality-based, and so that's got to get to a critical mass where it really has an impact on the overall end market. And we're not expecting that in 2019. What's been very important to us is to make sure that mandates stay on track and are enforced. And we're feeling very good about that. We're seeing it in the new content that we're shipping. We're seeing that in the production build for things like NS VI. Those are stabilizing. I think relative to overall end market volatility, the prospective we come away with is that there is a negative sentiment at the business level in China. And so just getting to the point where there are fewer surprises on the horizon is going to be important to our customers. Trade is a piece of it. It's probably more pronounced in the past few months than it has been. That's our sense as we've talked to overall OEM customers. But it has not impacted what they're bringing into the market, the new applications that they're putting onboard, and we think that, that is the most important thing to understand as they move forward in the end market.

是的。我們在中國花了很多時間，但我自己和傑夫實際上在過去幾個月一直在中國實地考察，試圖了解這一點。從政策角度來看，迄今為止實施的激勵和刺激措施基本上都是以市政當局為基礎的，因此必須達到一個臨界點，才能真正對整個終端市場產生影響。我們預計 2019 年不會出現這種情況。對我們來說非常重要的是確保任務保持在正軌上並執行。我們對此感覺非常好。我們在我們發布的新內容中看到了這一點。我們在 NS VI 等產品的生產版本中看到了這一點。這些正在穩定下來。我認為，相對於整體終端市場的波動，我們得出的結論是，中國商業層面存在負面情緒。因此，減少意外的發生對我們的客戶來說非常重要。貿易是其中的一部分。在過去的幾個月裡，這種情況可能比以前更明顯。這是我們與整體 OEM 客戶交談時的感受。但這並沒有影響他們進入市場的產品、他們正在推出的新應用程序，我們認為，這是他們在終端市場前進時需要理解的最重要的事情。

And the next question comes from Joe Giordano with Cowen.

下一個問題來自喬·佐丹奴和考恩。

This is Robert on for Joe. I guess to kind of follow on, on China as it relates to your view into 2020. There's a lot of debate out there on where Europe and China will be in terms of production next year, with some more bearish than IHS data. In China, they have this overcapacity and high inventory dynamic going on. And I just wanted your opinions on how you think that dynamic balances with the government that doesn't want to see another year of declines for such an important industry for them. So any kind of thoughts on 2020 would be very helpful.

這是羅伯特替喬代言。我想繼續關注中國，因為這與你對 2020 年的看法有關。關於歐洲和中國明年的生產狀況存在著許多爭論，其中一些爭論比 IHS 的數據更為悲觀。在中國，產能過剩和高庫存動態正在持續發生。我只是想聽聽您對如何與政府保持動態平衡的看法，因為政府不希望看到如此重要的產業又出現一年的下滑。因此，關於 2020 年的任何想法都會非常有幫助。

Yes. Look, we don't have all the answers. We're watching it closely. One of the things that we're really keeping our eye on, and I would encourage you to do the same, is looking at where overall vehicle inventories sit. There is generally information around rolling averages on month on hand. We would expect that, that needs to come down as we get towards the end of the year, and that will be an important leading indicator on 2020. It has not come down and that's part of our revised call on the balance of the year. Relative to the importance of maintaining an automotive market, you definitely see that in some of the incentives again that we're seeing rolling out into municipalities. A really important piece of that is the new energy vehicle component in China, and that is very much on track. And then beyond automotive, there are very important end markets for China -- in China for Sensata as well. And so I'm more encouraged by what we see relative to technology uptakes in end markets like materials handling, on much more efficient infrastructure going into buildings and other areas. And the government is definitely encouraging those as well.

是的。看，我們沒有所有的答案。我們正在密切關注。我們真正關注的事情之一（我鼓勵您也這樣做）是查看整體車輛庫存。通常有關於現有月份滾動平均值的資訊。我們預計，隨著年底的到來，這一數字需要下降，這將成為 2020 年的重要領先指標。它還沒有下降，這是我們對今年剩餘時間的修訂呼籲的一部分。相對於維持汽車市場的重要性，你肯定會在我們看到的一些激勵措施中看到這一點，這些措施正在向市政當局推出。其中一個非常重要的部分是中國的新能源汽車零件，而且它已經步入正軌。除了汽車之外，中國還有非常重要的終端市場——對森薩塔來說，中國也是如此。因此，我對我們所看到的終端市場（例如材料處理）的技術採用以及進入建築物和其他領域的更高效的基礎設施感到更加鼓舞。政府肯定也在鼓勵這些。

And the next question comes from Shawn Harrison with Longbow Research.

下一個問題來自長弓研究中心的肖恩哈里森。

Martha, I was hoping you could maybe talk about the inventory situation in the HVOR sector as well as kind of the broader industrial markets and maybe how long you think it may take to clean out whatever excess is in those markets.

瑪莎，我希望您能談談 HVOR 行業以及更廣泛的工業市場的庫存狀況，以及您認為清理這些市場中的過剩庫存可能需要多長時間。

Yes. I think on the industrial side -- I'll start there. We mentioned in our prepared remarks that we've got about $250 million annualized revenue and a portion of our business that is attractive but moves with end market and sits pretty high back in the supply chain. We're expecting continued inventory corrections through the end of the year, and that's a phenomena that we see in that overall business. When we look at industry online data, which is a good source for trying to understand whether or not we're seeing major changes, we haven't seen a rise in inventory at that level, but it's sitting at fairly high levels. And we would expect that, that needs to come down as well.

是的。我認為在工業方面——我會從那裡開始。我們在準備好的發言中提到，我們的年收入約為 2.5 億美元，我們的部分業務很有吸引力，但隨著終端市場的變化而變化，並且在供應鏈中處於相當高的位置。我們預計到今年年底庫存將持續調整，這是我們在整個業務中看到的現象。當我們查看行業在線數據時（這是試圖了解我們是否看到重大變化的良好來源），我們沒有看到庫存增加到這個水平，但它處於相當高的水平。我們預計，這也需要下降。

I think relative to HVOR, I'm going to let Jeff speak to that. Again, he's been spending a lot of time on that part of our business.

我認為相對於 HVOR，我會讓 Jeff 來談談這個問題。同樣，他在我們業務的這一部分上花費了很多時間。

Yes. So on the HVOR side, the first half of the year with -- about flat growth, up 1%. It turned out somewhat like we would have expected. We were always forecasting second half of the year to come down more dramatically though, and several of our larger customers had announced the fact that they intend to take inventory out. So I think on the HVOR side, the inventory correction has started toward the end of the second quarter, but more of that will happen during the second half of the year. And we get some visibility into that as we examine our customer orders and we talk through that with them, but it will take a quarter or 2 for that to work through the pipeline, I would estimate.

是的。因此，在 HVOR 方面，今年上半年成長基本持平，成長了 1%。結果有點像我們預期的。不過，我們一直預測下半年會出現更大幅度的下降，而且我們的一些大客戶已經宣布他們打算去庫存。因此，我認為在 HVOR 方面，庫存調整已在第二季末開始，但更多調整將在今年下半年發生。當我們檢查客戶訂單並與他們討論這個問題時，我們對此有了一些了解，但我估計，需要四分之一或兩個季度才能通過管道。

And then Jeff, if I may follow-up. A comment on timing related in terms of just the lower HVOR market outgrowth in the second quarter. What would you expect your market outgrowth to accelerate to in the back half of the year?

然後是傑夫，請容許我跟進。對時機的評論與第二季 HVOR 市場成長較低有關。您預計今年下半年市場成長將加速到什麼程度？

It will be higher than second quarter for sure, but the -- if you recall, the first quarter was significantly higher. It was 850 basis points in the first quarter. We -- I would expect that it's going to be more similar towards the year-to-date number, around that 400 to 500 basis points.

它肯定會高於第二季度，但如果你還記得的話，第一季明顯更高。第一季為850個基點。我們——我預計它會與今年迄今為止的數字更加相似，大約 400 到 500 個基點。

And 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。

A couple of questions. You flagged China or so-called National VI in particular around the trucking business there. But could you maybe tell us how you think, despite the unit volumes, your content might benefit from that in the light vehicle marketplace in China?

有幾個問題。您特別提到了中國或所謂的國六貨運業務。但您能否告訴我們，您如何認為，儘管單位數量很大，但您的內容可能會從中國輕型汽車市場中受益？

Yes. Our content is actually benefiting from that right now, Brian. So we are on the production launches associated with National VI. We've been watching very closely to make sure that those launches are on track and that production is actually changing over. We're very encouraged that it has and that it will continue to see launches against that mandate as we move into the second half of the year. The complicating factor is that as a result of this changeover in a down market, there's quite a bit of National V vehicle inventory -- light vehicle inventory sitting in place. And that needs to be worked off. That is our assumption in our -- one of the things that drives a reduced outlook from Sensata for the China auto market.

是的。我們的內容現在實際上正受益於這一點，布萊恩。因此，我們正在推出與國六相關的產品。我們一直在密切關注，以確保這些發布步入正軌，並且生產實際上正在轉變。我們感到非常鼓舞的是，隨著進入今年下半年，它已經並將繼續看到針對該授權的發布。複雜的因素是，由於市場低迷的這種轉變，有相當多的國五汽車庫存——輕型汽車庫存到位。這需要解決。這是我們的假設，也是導緻森薩塔下調中國汽車市場前景的因素之一。

Okay. Second -- just a quick follow-up there. Do you have any -- could you give us a sense of how your business is split between premium in China, larger foreign JVs, larger local OEMs and then the smaller OEMs where the sales decline seem to be the largest?

好的。其次——只是快速跟進。您能否為我們介紹一下您的業務如何劃分為中國的高端企業、大型外國合資企業、大型本地原始設備製造商以及銷售額下降幅度最大的小型原始設備製造商？

Yes. We've gotten -- you can really track it based on what is the overall sensor content that then -- let's say a local brand versus a multinational brand. So the fastest growing part of our content is actually with those local brands that are coming from a fairly low point but having to meet the overall mandate. So that's been an attractive part of the business. Our revenues in China against that mix are very much a reflection of the shares that those players have in China. So it is not as though we've got just a couple of auto OEM customers. We're pretty well represented across the fleet if you look at the top 20 producers.

是的。我們已經得到了——你可以根據整體感測器內容來追蹤它——比如說本地品牌與跨國品牌。因此，我們內容中成長最快的部分實際上是那些來自相當低的水平但必須滿足整體要求的本土品牌。所以這是該業務一個有吸引力的部分。我們在中國的收入在很大程度上反映了這些參與者在中國的份額。因此，我們並不是只有幾個汽車原始設備製造商客戶。如果你看看前 20 名生產商，我們在整個機隊中都有很好的代表。

Relative to premium vehicles, it's important to understand that our products show up in mission-critical applications. So you'll find us in braking systems, you'll find us embedded in the tires, we're sitting in exhaust systems, we're increasingly now designed into traction motors and working on applications that protect thermal runaway in an electric vehicle. The point being that we're not part of the convenience or sort of gadgetry that you might see in an overall premium vehicle versus more of a mass-market vehicle. And so therefore, we don't see a lot of swings in our business if there are changes in the take rates across those segments.

相對於高檔車輛，重要的是要了解我們的產品出現在關鍵任務應用中。因此，您會發現我們在煞車系統中，您會發現我們嵌入在輪胎中，我們位於排氣系統中，我們現在越來越多地被設計到牽引馬達中，並致力於保護電動車熱失控的應用。關鍵是，我們並不是您在整體高端車輛中看到的便利或小玩意的一部分，而不是大眾市場車輛。因此，如果這些細分市場的採用率發生變化，我們的業務不會太大波動。

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。

So good to see the step-up in outgrowth and also the margin resiliency was pretty good. So that's good. But the issue obviously is the end market and the lack of visibility. So Martha, you touched a little bit on China markets, but what are some of the conversations you're having with the European automotive clients given the lack of visibility there? I mean for now, regulations are helping. But beyond that, what is their sense for how the market is going to play out? Or what is the time line for recovery? Anything you could provide color on what your -- how your conversations with the European clients are going, that will be helpful. And I have a follow-up.

很高興看到成長的增加以及利潤彈性也相當好。所以這樣很好。但問題顯然是終端市場和缺乏知名度。瑪莎，您對中國市場進行了一些接觸，但是考慮到那裡缺乏知名度，您與歐洲汽車客戶進行了哪些對話？我的意思是，就目前而言，法規正在發揮作用。但除此之外，他們對市場將如何發展有何看法？或者說恢復的時間是多少？您可以提供有關您與歐洲客戶的對話進展的任何信息，這都會有所幫助。我有一個後續行動。

Okay, sure. Yes. Europe, a really important end market for us. In terms of the overall visibility, I would say the visibility we've had coming into the quarter relative to European players has been okay. So not a lot of surprises inside the quarter. As we look at more of the intermediate term, really trying to keep our eye on what is impacting them; what has impacted them in, let's say in the past 12 months, things like WLTP; and how is that playing out in 2019? So we've spent quite a bit of time on that topic. We don't expect to see another major dislocation in demand given some of the WLTP changes that will be happening again in September, so watching that closely. But one of the impacts that we are seeing in Europe is something of a knock-on effect to the China end market. So we have important customers. There are major Tier 1 systems integrators coming out of Europe that actually ship into China. There are still engines that go into China as well. And so that is having an impact on the overall Europe market. And to the extent that, that is volatile, that does affect the visibility that our European customers have and hence our visibility.

好吧，當然。是的。歐洲對我們來說是一個非常重要的終端市場。就整體可見度而言，我想說我們進入本季的可見度相對於歐洲玩家來說還不錯。因此，本季內並沒有太多驚喜。當我們更專注於中期時，我們會真正努力關注影響他們的因素；比如說在過去 12 個月裡，什麼對他們產生了影響，例如 WLTP； 2019 年情況如何？所以我們在這個話題上花了相當多的時間。鑑於 WLTP 的一些變化將在 9 月再次發生，我們預計需求不會再次出現重大混亂，因此請密切注意。但我們在歐洲看到的影響之一是對中國終端市場的連鎖反應。所以我們有重要的客戶。有一些來自歐洲的主要一級系統整合商實際上向中國發貨。仍然有發動機進入中國。這對整個歐洲市場產生了影響。在某種程度上，這是不穩定的，這確實影響了我們歐洲客戶的知名度，從而影響了我們的知名度。

Got it. But any -- okay, so there's not really much visibility, you're saying? The conversations are not necessarily, at this point in time, how the markets recovers, but it seems like it's more a block-and-tackle at this point in time. All right.

知道了。但是任何 - 好吧，所以沒有太多的能見度，你是說？目前的對話不一定是市場如何復甦，但目前看來更像是一種阻礙。好的。

My follow-up would be, can you talk about your truck markets across the globe? Just what your assumptions are? North America, obviously peakish; Europe trucks, somewhat underperforming, a [weak] business market; and China, HVOR benefiting from TPMS, obviously. But can you update us what your views are? What is the kind of momentum you saw? And if you can provide us expectations by region and how this flows into your lower end market guidance, that will be helpful.

我的後續問題是，您能談談您在全球的卡車市場嗎？你的假設是什麼？北美，明顯處於高峰期；歐洲卡車表現有些不佳，商業市場[疲軟]；在中國，HVOR 顯然受益於 TPMS。但你能告訴我們你的看法嗎？你看到的是一種怎樣的氣勢？如果您可以向我們提供按地區劃分的期望以及這些期望如何融入您的低端市場指導，這將會有所幫助。

Yes. We can try to give you a bit of that. I would just start off high-level by saying we actually think that the market will slow more in the second half of the year than it has in the first half of the year as it relates to the heavy vehicle and off-road business. We had been anticipating somewhat of a correction on-road in North America, and we're seeing that. I think it came a little bit sooner into the second quarter. We thought that would be more second half-based. We think that's going to be a double-digit down end market in the second half of the year. In Europe, we expect to get marginally worse as well but probably more in single-digit down, and we're beginning to see other portions of our off-road market now being impacted. So ag and construction are both important end markets in our HVOR section. We expect that those will be down from an end market perspective in the second half of the year.

是的。我們可以嘗試為您提供一些。我首先要說的是，我們實際上認為下半年市場放緩的程度將比上半年更大，因為這與重型車輛和越野業務有關。我們一直預期北美公路上會出現一些修正，我們也看到了這一點。我認為第二季的情況來得有點早。我們認為這將更多地基於下半年。我們認為今年下半年高端市場將出現兩位數的下滑。在歐洲，我們預計情況也會略有惡化，但可能會出現個位數下降，我們開始看到越野市場的其他部分受到影響。因此，農業和建築業都是我們 HVOR 領域的重要終端市場。我們預計，從今年下半年終端市場的角度來看，這些數字將會下降。

And 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。

Just one question from me. I think you implied 4Q '19 EPS guidance of about [$1.04 to $1.05], plus high single-digit EPS growth off of about 3.5% to 4% revenue growth year-over-year. I know that's not an unusual amount of EPS leverage. But last year in the fourth quarter, OpEx was managed pretty tightly and I think maybe tax rate was a little bit of a headwind year-over-year. So maybe just help us better understand what's driving some of that year-over-year leverage and where we may see that show up in the P&L this year.

我只想問一個問題。我認為您暗示 2019 年第 4 季每股收益指引約為 [1.04 美元至 1.05 美元]，加上每股盈餘年增約 3.5% 至 4%，每股盈餘呈高個位數成長。我知道每股盈餘槓桿的金額並不罕見。但去年第四季度，營運支出管理得相當嚴格，我認為稅率可能與去年同期相比有點不利。因此，也許只是幫助我們更好地了解是什麼推動了同比槓桿率的成長，以及我們可能會在今年的損益表中看到這一點。

Sure, Mark. Let me [address the benchmark to you]. Last year, Q4 operating income index was 24.8%. And so this Q4 is slightly better than that. What we would expect will be continued improvement in the cost structure. The restructuring actions that we've taken will certainly help the bottom line just continue improving our productivity initiatives, which gets stronger as the year goes on. It's managing our costs very smartly given where the end markets are. So I feel it's very consistent with what we've seen before in terms of the ramp-up in profit sequentially. And you're right, that does deliver a nice EPS result in Q4 to help us get us to our -- the midpoint of our guidance that we've provided.

當然，馬克。讓我[向您介紹基準]。去年第四季營業收入指數為24.8%。所以第四季比那好一些。我們預計成本結構將持續改善。我們採取的重組行動肯定會幫助我們繼續提高我們的生產力計劃，隨著時間的推移，我們的生產力計劃會變得更加強大。考慮到終端市場的位置，它非常明智地管理我們的成本。所以我覺得這與我們之前看到的利潤連續成長非常一致。你是對的，這確實在第四季度帶來了不錯的每股收益結果，幫助我們達到了我們所提供的指導的中點。

And the next question comes from Jim Suva with Citi.

下一個問題來自花旗銀行的吉姆·蘇瓦。

This is Tim Yang calling on behalf of Jim Suva. TPMS rollout in China, do you still expect the rollout to be in the second half of this year? I believe you mentioned $90 million revenue opportunities for Sensata. Is that still the case?

我是提姆·楊（Tim Yang）代表吉姆·蘇瓦（Jim Suva）打來的電話。TPMS在中國推出，您還預計今年下半年推出嗎？我相信您提到了森薩塔 9000 萬美元的收入機會。現在還是這樣嗎？

So we have already seen that momentum take place. We saw that begin last year. We've seen it move into this year as well. We're seeing content growth in the first half of 2019 as it relates to TPMS. So really, I'd say well underway. We would expect to see that continue as we move into the second half as well. Jeff alluded to the fact that there is another leg coming on TPMS, which is really in our heavy vehicle and off-road business. So some of the new business opportunity wins that we've had in 2018 and in 2019 relate to new content that will be coming on the HVOR side of the business as well in tire pressure monitoring.

所以我們已經看到這種勢頭正在發生。我們從去年就看到了這一點。我們也看到它進入了今年。我們看到 2019 年上半年與 TPMS 相關的內容有所成長。所以說真的，我想說進展順利。當我們進入下半年時，我們希望看到這種情況繼續下去。Jeff 提到了 TPMS 的另一個發展方向，即我們的重型車輛和越野業務。因此，我們在 2018 年和 2019 年贏得的一些新業務機會與 HVOR 業務以及輪胎壓力監測的新內容有關。

And the next question comes from Ethan Puritz with Morgan Stanley.

下一個問題來自摩根士丹利的伊森·普里茨（Ethan Puritz）。

Okay. As there is nothing on this line, that is all the time we have currently for questions. So I would like to return the floor to Joshua Young for any closing comments.

好的。由於該線路上沒有任何內容，因此我們目前的提問時間就到此為止。因此，我想請約書亞楊 (Joshua Young) 發言以徵求結束意見。

Thank you very much. I'd like to thank everybody for joining us this morning. Sensata will be attending the following investor conferences during the third quarter: the Canaccord Growth and Transportation Conferences in Boston and the Citi Technology Conference in New York. We hope to see you at these conferences, and we invite you to visit us at our headquarters in Attleboro, Massachusetts.

非常感謝。我要感謝大家今天早上加入我們。森薩塔將在第三季參加以下投資者會議：波士頓的 Canaccord 成長和運輸會議以及紐約的花旗技術會議。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。

We appreciate your continued interest in Sensata. Thank you and good day.

我們感謝您對森薩塔的持續關注。謝謝你，美好的一天。

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

謝謝。會議現已結束。感謝您參加今天的演講。

You may now disconnect your lines.

現在您可以斷開線路。