Steel Dynamics Inc (STLD) 2022 Q2 法說會逐字稿

Good day, and welcome to the Steel Dynamics Second Quarter 2022 Earnings Conference Call. (Operator Instructions) Please be advised this call is being recorded today, July 21, 2022, and your participation implies consent to our recording this call. If you do not agree to these terms, please disconnect.

美好的一天，歡迎參加 Steel Dynamics 2022 年第二季度收益電話會議。 （操作員說明）請注意，本次通話將於 2022 年 7 月 21 日進行錄音，您的參與即表示同意我們對本次通話進行錄音。如果您不同意這些條款，請斷開連接。

At this time, I would like to turn the conference over to David Lipschitz, Director, Investor Relations. Please go ahead.

此時，我想將會議轉交給投資者關係總監 David Lipschitz。請繼續。

Thank you, Holly.

謝謝你，霍莉。

Good morning, and welcome to Steel Dynamics Second Quarter 2022 Earnings Conference Call. As a reminder, today's call is being recorded and will be available on our website for replay later today.

早上好，歡迎參加 Steel Dynamics 2022 年第二季度收益電話會議。提醒一下，今天的通話正在錄音中，今天晚些時候可以在我們的網站上重播。

Leading today's call are Mark Millett, Chairman and Chief Executive Officer of Steel Dynamics; and Theresa Wagler, Executive Vice President and Chief Financial Officer. The other members of our senior leadership team are joining us on the call individually.

領導今天的電話會議的是 Steel Dynamics 董事長兼首席執行官 Mark Millett；以及執行副總裁兼首席財務官Theresa Wagler。我們高級領導團隊的其他成員將單獨加入我們的電話會議。

Some of today's statements, which speak only as of this date, may be forward-looking and predictive, typically preceded by believe, expect, anticipate or words of similar meaning. They are intended to be protected by the Private Securities Litigation Reform Act of 1995 should actual results turn out differently. Such statements involve risks and uncertainties related to integrating or starting up new assets, the aluminum industry, the use of estimates and assumptions in connection with anticipated project returns and our steel, metals recycling and fabrication businesses as well as to general business and economic conditions.

今天的一些陳述（僅在該日期發表）可能具有前瞻性和預測性，通常以相信、預期、預期或類似含義的詞語開頭。如果實際結果不同，它們將受到 1995 年《私人證券訴訟改革法案》的保護。此類陳述涉及與整合或啟動新資產、鋁業、使用與預期項目回報和我們的鋼鐵、金屬回收和製造業務以及一般業務和經濟狀況相關的估計和假設相關的風險和不確定性。

Examples of these are described in the related press release as well as in our annually filed SEC Form 10-K under the headings Forward-looking Statements and Risk Factors found on the Internet at www.sec.gov and, if applicable, in any later SEC Form 10-Q.

這些示例在相關新聞稿以及我們每年提交的 SEC 表格 10-K 中進行了描述，標題為前瞻性聲明和風險因素，可在互聯網 www.sec.gov 上找到，如果適用，在任何以後SEC 表格 10-Q。

You will also find any referenced non-GAAP financial measures reconciled to the most directly compared GAAP measures in the press release issued yesterday entitled Steel Dynamics Reports Record Second Quarter 2022 Results.

您還將在昨天發布的題為《鋼鐵動力報告記錄 2022 年第二季度業績》的新聞稿中發現任何引用的非公認會計原則財務措施與最直接比較的公認會計原則措施相一致。

Now I'm pleased to turn the call over to Mark.

現在我很高興將電話轉給馬克。

Well, thank you, David. Thank you, everyone, for being with us on our second call this week. It's been -- it was exciting to announce our new growth initiative on Tuesday with our entry into the aluminum market. And it's only been, I think probably just 48 hours or so, and the customer response from all 3 market segments, whether it be distribution processes, whether it be the packaging industry or even automotive, it's been absolutely staggering, the early sign of affirmation of us getting into the marketplace, and I think speaks to the lack of supply and optionality within that market. So that's exciting.

好吧，謝謝你，大衛。謝謝大家，感謝你們在本週的第二次電話會議上與我們在一起。隨著我們進入鋁市場，我們在周二宣布了新的增長計劃，這令人興奮。只是，我認為可能只有 48 小時左右，所有 3 個細分市場的客戶反應，無論是分銷流程，無論是包裝行業還是汽車，絕對令人震驚，這是肯定的早期跡象我們進入市場，我認為這說明了該市場缺乏供應和可選性。所以這很令人興奮。

And it's as exciting and even more exciting to announce yet another record quarter, record consolidated volumes, earnings per share, cash flow, all supporting our cash allocation strategy and commitment to build shareholder value. Specifically, we repurchased $517 million worth of the company's common stock, representing 3.5% of our outstanding shares in the quarter. So we're staying true to our repurchase programs.

宣布又一個創紀錄的季度、創紀錄的合併銷量、每股收益、現金流量，這一切都支持我們的現金分配戰略和建立股東價值的承諾，這同樣令人興奮，甚至更令人興奮。具體來說，我們回購了價值 5.17 億美元的公司普通股，佔本季度流通股的 3.5%。所以我們堅持我們的回購計劃。

We are certainly beneficiary of a strong market tailwind, but I'm incredibly proud of our 11,000 strong team. They are the foundation and the catalyst of our success. They are the ones driving the superior results. It's their culture of excellence and the strategic positioning executed over the last 10 years that allows us to exploit the current market and will continue to produce higher lows and higher highs through the cycle.

我們當然受益於強勁的市場順風，但我為我們 11,000 名強大的團隊感到無比自豪。他們是我們成功的基礎和催化劑。他們是推動卓越成果的人。正是他們的卓越文化和過去 10 年執行的戰略定位使我們能夠利用當前市場，並將在整個週期中繼續創造更高的低點和更高的高點。

I've said it many times before, but none of this matters without keeping everyone safe. Often, employees are described as a company's most important asset. For us, they are more than that. They're part of the SDI family, the people, and we are always striving to provide the best for their health, their safety and for the welfare. We're actively focused on safety at all times, keeping it top of mind and an active conversation at every level within the organization. We're certainly better than industry averages, but we're not going to rest until we consistently achieve our goal of 0 incidents. We're continuing to see material market share gains driven by our ESG profile, an industry-leading low carbon footprint for flat-rolled products. We will continue our journey to environmental excellence through a defined and achievable plan to be carbon neutral by 2050. Our recent Aymium investment and our joint venture is a perfect example of that. It's an exciting opportunity to reduce greenhouse gas emissions through renewable biomass replacing fossil fuels in our electric arc furnaces. We have tested the product and it works beautifully. We believe it will also work within our iron operations. Initially, it will be 160,000 metric tons per year, and the CapEx is estimated to be around $125 million to $150 million. It will reduce our Scope 1 steelmaking greenhouse gas intensity by some 20%, 25% with even further potential upside from the use of the biogas. So with that said, Theresa, would you like to give us some thoughts?

我之前已經說過很多次了，但是如果不保證每個人的安全，這一切都不重要。通常，員工被描述為公司最重要的資產。對我們來說，它們不止於此。他們是 SDI 大家庭、人民的一部分，我們一直在努力為他們的健康、安全和福利提供最好的服務。我們始終積極關注安全，始終將其放在首位，並在組織內的各個層面進行積極對話。我們肯定優於行業平均水平，但在我們始終如一地實現 0 事件的目標之前，我們不會休息。我們繼續看到我們的 ESG 概況推動了材料市場份額的增長，這是行業領先的扁平材低碳足跡。我們將通過一個明確且可實現的計劃繼續我們的環境卓越之旅，到 2050 年實現碳中和。我們最近的 Aymium 投資和我們的合資企業就是一個完美的例子。這是一個令人興奮的機會，通過可再生生物質替代我們電弧爐中的化石燃料來減少溫室氣體排放。我們已經對產品進行了測試，並且效果很好。我們相信它也將在我們的鋼鐵業務中發揮作用。最初，每年將達到 160,000 公噸，資本支出估計約為 1.25 億至 1.5 億美元。這將使我們的 Scope 1 煉鋼溫室氣體強度降低約 20%、25%，使用沼氣的潛力甚至更大。話雖如此，特蕾莎，你想給我們一些想法嗎？

Thank you, Mark. Good morning, everyone. As Mark said, what an incredible week. We announced our aluminum strategy on Tuesday, and now we're sharing our record results. I can see personal things relate to the entire SDI family. Your performance resulted in record sales, earnings and cash flow, a truly exceptional performance.

謝謝你，馬克。大家，早安。正如馬克所說，這是多麼不可思議的一周。我們在周二宣布了我們的鋁戰略，現在我們正在分享我們創紀錄的結果。我可以看到個人的事情與整個 SDI 家族有關。你的表現帶來了創紀錄的銷售額、收益和現金流，這是一個真正卓越的表現。

Our second quarter 2022 net income was $1.2 billion or $6.44 per diluted share, inclusive of cost of $77 million or $0.29 per diluted share associated with the continued start-up of our Sinton, Texas flat-rolled steel mill. Excluding these costs, second quarter 2022 adjusted net income was $1.3 billion or $6.73 per diluted share.

我們 2022 年第二季度的淨收入為 12 億美元或稀釋後每股收益 6.44 美元，其中包括與德克薩斯州辛頓軋鋼廠持續啟動相關的 7700 萬美元或稀釋後每股收益 0.29 美元。不計這些成本，2022 年第二季度調整後的淨收入為 13 億美元或每股攤薄收益 6.73 美元。

Revenues improved across all of our platforms to a record $6.2 billion, driven by record steel shipments and record pricing volume in our steel fabrication business. Our second quarter 2022 record operating income of $1.6 billion improved 8% versus first quarter results, driven by record steel fabrication earnings.

在我們鋼鐵製造業務創紀錄的鋼材出貨量和創紀錄的定價量的推動下，我們所有平台的收入均增長至創紀錄的 62 億美元。在創紀錄的鋼鐵製造收益的推動下，我們 2022 年第二季度創紀錄的 16 億美元營業收入與第一季度相比增長了 8%。

Our steel operations generated very strong operating income of $1.1 billion in the second quarter with record shipments of 3.1 million tons, of which Sinton contributed 171,000 tons.

我們的鋼鐵業務在第二季度創造了非常強勁的營業收入，達到 11 億美元，出貨量達到創紀錄的 310 萬噸，其中 Sinton 貢獻了 171,000 噸。

Sequential earnings were 5% lower due to metal spread compression in our flat-rolled steel operations as realized pricing declined and average scrap costs increased. In contrast, our long product steel operations experienced metal spread expansion resulting from rising product prices. In fact, we set quarterly record shipments at our Structural, Engineer Bar and Roanoke Bar divisions.

由於實際定價下降和平均廢鋼成本增加，我們的扁鋼業務中的金屬價差壓縮導致連續收益下降 5%。相比之下，由於產品價格上漲，我們的長材鋼材業務經歷了金屬價差擴大。事實上，我們在 Structural、Engineer Bar 和 Roanoke Bar 部門創造了季度出貨量記錄。

Second quarter operating income for our metals recycling operations remained strong at $58 million, representing a 20% sequential quarterly improvement as ferrous metal margin and volume improved. The team continues to effectively lever the strength of our circular manufacturing operating model, benefiting both our steel and mills recycling operations by providing higher quality scrap, which improves furnace efficiency and by reducing company-wide working capital requirements. A huge congratulations once again to our steel fabrication team. They achieved record second quarter operating income of $599 million. These earnings were driven by record average pricing, coupled with record shipments. Steel joist and deck demand remains strong as evidenced by the continued strength in our order backlog, which remains at near record levels and contain strong forward pricing.

我們金屬回收業務的第二季度營業收入保持強勁，為 5800 萬美元，隨著黑色金屬利潤率和銷量的改善，環比增長 20%。該團隊繼續有效地利用我們循環製造運營模式的優勢，通過提供更高質量的廢料、提高熔爐效率和降低公司範圍內的營運資金需求，使我們的鋼鐵和工廠回收業務受益。再次熱烈祝賀我們的鋼鐵製造團隊。他們實現了創紀錄的第二季度營業收入 5.99 億美元。這些收益是由創紀錄的平均價格和創紀錄的出貨量推動的。鋼托樑和甲板需求依然強勁，我們的訂單積壓持續強勁就證明了這一點，該訂單保持在接近創紀錄水平並包含強勁的遠期定價。

Based on the strength, we expect steel fabrication earnings to continue to increase even further as the year progresses. Our cash generation continues to be consistently strong based on our differentiated circular business model and highly variable cost structure.

基於實力，我們預計隨著時間的推移，鋼鐵製造收益將繼續進一步增長。基於我們差異化的循環業務模式和高度可變的成本結構，我們的現金產生持續強勁。

At the end of June, we had record liquidity of $2.5 billion, comprised of cash and short-term investments of $1.3 billion and an undrawn unsecured revolver of $1.2 billion. We generated record cash flow from operations of $1 billion in the second quarter and $1.8 billion year-to-date.

截至 6 月底，我們的流動性達到創紀錄的 25 億美元，其中包括 13 億美元的現金和短期投資以及 12 億美元的未提取無抵押左輪手槍。我們在第二季度和今年迄今為止的 18 億美元的運營中產生了創紀錄的現金流量。

During the first half of 2022, we have funded $323 million in capital investments. For the second half of 2022, we estimate capital investments will be approximately $350 million to $400 million, the majority of which relate to our 4 new flat roll coating lines to be located in Sinton and Heartland.

2022 年上半年，我們為資本投資提供了 3.23 億美元的資金。對於 2022 年下半年，我們估計資本投資將約為 3.5 億美元至 4 億美元，其中大部分與我們將位於 Sinton 和 Heartland 的 4 條新的平輥塗佈線有關。

We maintained our cash dividend at $0.34 per common share after increasing it 31% in the first quarter. Year-to-date, we repurchased $906 million or 6.5% of our outstanding shares. At the end of the second quarter, $727 million remained available under our most recent share repurchase authorization. Since 2017, we've increased our cash dividend per share by 143%, and we have repurchased $3.2 billion of our common stock, representing 30% of our outstanding shares. These actions reflect the strength of our capital foundation and consistently strong cash flow generation capability throughout all market cycles and the continued optimism and confidence in our future. Our capital allocation strategy prioritizes strategic growth with the shareholder distributions comprised of a positive dividend profile that is complemented with a variable share repurchase program, while also dedicated to preserving our investment-grade credit designation.

在第一季度增加 31% 後，我們將現金股息維持在每股普通股 0.34 美元。年初至今，我們回購了 9.06 億美元或 6.5% 的流通股。在第二季度末，根據我們最近的股票回購授權，仍有 7.27 億美元可用。自 2017 年以來，我們的每股現金股息增加了 143%，我們回購了 32 億美元的普通股，占我們流通股的 30%。這些行動反映了我們資本基礎的實力和在所有市場週期中始終如一的強大現金流產生能力，以及對我們未來的持續樂觀和信心。我們的資本分配戰略優先考慮戰略增長，股東分配包括積極的股息狀況，並輔以可變的股票回購計劃，同時還致力於保持我們的投資級信用評級。

Our recently announced aluminum investment is consistent with our unchanged strategy. As I mentioned on Tuesday's call, our cash flow profile has fundamentally changed over the last 5 years. We will readily fund this investment with available cash and cash flow from operations. We also plan to continue strong shareholder distributions. We've strategically placed ourselves in a position to have a sustainable capital foundation that provides the opportunity for strategic growth, strong shareholder returns and maintain investment-grade metrics. We are squarely positioned for the continuation of sustainable optimized long-term value creation.

我們最近宣布的鋁投資符合我們不變的戰略。正如我在周二的電話會議中提到的，我們的現金流狀況在過去 5 年中發生了根本性的變化。我們將隨時用可用的現金和運營現金流為這項投資提供資金。我們還計劃繼續強勁的股東分配。我們已戰略性地將自己置於擁有可持續資本基礎的位置，為戰略增長、強勁的股東回報和保持投資級指標提供機會。我們為持續優化的長期價值創造做好了充分的準備。

Sustainability is a part of our long-term value creation strategy, and we are dedicated to our people, our communities and our environment. We're committed to operating our business with the highest integrity. In that regard, as Mark mentioned, we're very excited to -- that we formed our joint venture with Aymium recently, a leading producer of renewable biocarbon products. Steel Dynamics owns 55% of the joint venture, and we're the operating partner.

可持續發展是我們長期價值創造戰略的一部分，我們致力於我們的員工、社區和環境。我們致力於以最高的誠信經營我們的業務。在這方面，正如馬克所提到的，我們非常高興 - 我們最近與 Aymium 成立了合資企業，Aymium 是可再生生物碳產品的領先生產商。 Steel Dynamics 擁有合資企業 55% 的股份，我們是運營合作夥伴。

We have an actionable path toward carbon neutrality that is more manageable and we believe considerably less expensive than may lay ahead for many of our industry peers. Our sustainability and carbon reduction strategy is an ongoing journey, and we are moving forward with the intention to make a positive difference. We plan to continue to address these matters and to play a leadership role moving forward.

我們有一條可操作的碳中和之路，更易於管理，而且我們相信比我們許多行業同行可能面臨的成本要低得多。我們的可持續發展和碳減排戰略是一個持續的旅程，我們正在向前邁進，旨在產生積極的影響。我們計劃繼續解決這些問題，並在未來發揮領導作用。

Mark?

標記？

Thank you, Theresa. As you saw, absolutely incredible results from the New Millennium fabrication platform, record operating income of $599 million in Q2 on record 218,000 tons of shipments. We see the nonresidential construction markets remaining strong. Despite the caution emanating from Amazon's message for next year, we have had reaffirmation from our major customers anyway, including warehouse customers that everything remains incredibly strong going forward into 2023. Cloud-based computing, data centers, pharma and schools are all strong. Although the ABI index may have drifted slightly month-over-month, the AI reports, ongoing order activity and architectural firms as well as new work online remains very strong.

謝謝你，特蕾莎。如您所見，New Millennium 製造平台取得了絕對令人難以置信的成果，第二季度創紀錄的營業收入為 5.99 億美元，出貨量達到創紀錄的 218,000 噸。我們看到非住宅建築市場依然強勁。儘管亞馬遜對明年的信息發出了謹慎的態度，但無論如何，我們的主要客戶（包括倉庫客戶）重申，到 2023 年，一切都將保持強勁。基於雲的計算、數據中心、製藥和學校都很強大。儘管 ABI 指數可能環比略有下降，但 AI 報告、正在進行的訂單活動和建築公司以及在線新工作仍然非常強勁。

For us, order input activity remains robust, and we still have near-peak backlog persisting. So that's a very, very good position to be in. Q3 earnings from fabrication will certainly increase. We're going to see increased shipments and metal spread expansion from both increased selling values and lower steel input costs. And as you've seen, this is a -- it's providing a perfect hedge to softening steel prices.

對我們來說，訂單輸入活動仍然很活躍，我們仍然有接近高峰的積壓持續存在。所以這是一個非常非常好的位置。第三季度製造收益肯定會增加。由於銷售價值的增加和鋼材投入成本的降低，我們將看到出貨量增加和金屬價差擴大。正如你所看到的，這是一個 - 它為疲軟的鋼鐵價格提供了完美的對沖。

Although we mentioned his impending retirement on our Q1 call, Russ Rinn had his final official day in the office last week after about 11 years of dedicated commitment to SDI and the OmniSource recycling platform. And yes, it's -- people say it's sweet and sour, but for me, it was tough to see him go.

儘管我們在第一季度的電話會議上提到了他即將退休，但 Russ Rinn 在對 SDI 和 OmniSource 回收平台進行了大約 11 年的全心投入之後，上週在辦公室度過了他的最後一天。是的，它是——人們說它酸甜可口，但對我來說，很難看到他離開。

He repositioned OmniSource to record earnings last year, dramatically influenced their safety performance over the years and has been a key contributor to the strategic moves we've made as a company. Right now, he hiking in Virginia. And mate, thank you very much for everything you've done.

去年，他將 OmniSource 重新定位為創紀錄的收益，多年來極大地影響了他們的安全績效，並且一直是我們作為一家公司所採取的戰略舉措的關鍵貢獻者。現在，他在弗吉尼亞徒步旅行。伙計，非常感謝你所做的一切。

The recycled platform saw stronger earnings based on higher domestic steel industry utilization pushing demand up, drove higher shipment volume, pricing and associated metal spread. After a strong downward move in prime scrap relative to shred through the quarter, that spread is normalized and pricing is expected to remain more stable in the months ahead.

由於國內鋼鐵行業利用率提高，推動需求上升，推動了更高的出貨量、定價和相關金屬價差，再生平台的收益更加強勁。在本季度主要廢鋼相對於碎廢鋼大幅下跌之後，價差已正常化，預計未來幾個月價格將保持更加穩定。

The Omni platform is continuing to work with the steel melt teams to further expand our shred segregation to provide higher volumes of low residual shred scrap, which continues to reduce our dependence on more expensive prime grades. Pig iron availability is normalized and pricing has moderated significantly to low $50 per ton range. We have sufficient pig iron sourced well into next year, and supply is not an issue.

Omni 平台將繼續與鋼鐵熔體團隊合作，進一步擴大我們的碎片分離，以提供更多的低殘留碎片廢料，從而繼續減少我們對更昂貴的優質鋼種的依賴。生鐵供應正常化，價格已顯著放緩至每噸 50 美元的低位。我們有足夠的生鐵採購到明年，供應不是問題。

And the rumors of us having problems with fast levels and such is totally inaccurate. There's no problem using the Brazilian pig iron that we're bringing into our mills.

而關於我們在快速水平等方面存在問題的謠言是完全不准確的。使用我們帶入工廠的巴西生鐵沒有問題。

Steel operations had another terrific quarter, record shipments of 3.1 million tons, strong operating income of $1.1 billion. Our second quarter production utilization rate was 95%, certainly above the industry average of some 82%. And I think we clearly communicated in the past that higher utilization rates have been clearly demonstrated over time.

鋼鐵業務又一個了不起的季度，出貨量達到創紀錄的 310 萬噸，營業收入達到 11 億美元。我們第二季度的生產利用率為 95%，肯定高於 82% 左右的行業平均水平。而且我認為我們過去清楚地傳達了隨著時間的推移已經清楚地證明了更高的利用率。

Our strategy of the value-add diversified product offerings and coming out with differentiated supply chains support that, along with our internal support from fabrication and downstream. Altogether, it supports our strong and growing through-cycle cash generation capability.

我們的增值多元化產品戰略和差異化供應鏈的出現支持這一點，以及我們來自製造和下游的內部支持。總而言之，它支持我們強大且不斷增長的全週期現金生成能力。

Our customer order entry remains strong. Support of value-added products is certainly a part of that. And as I said, we've intentionally grown that value-added steel product mix and created valuable supply chains to mitigate the impact of price volatility. Today, some 70% of our steel sales are value added. This supports our continued best-in-class financial metrics and cash generation.

我們的客戶訂單輸入仍然強勁。對增值產品的支持當然是其中的一部分。正如我所說，我們有意擴大增值鋼鐵產品組合併創建有價值的供應鏈以減輕價格波動的影響。今天，我們大約 70% 的鋼材銷售是增值的。這支持我們持續保持一流的財務指標和現金生成。

Specifically to the markets, we expect the automotive arena to remain strong and probably improve as the chip issue mitigates. We still have extremely low dealer inventories and a very strong pent-up vehicle demand from the consumer base.

具體到市場，我們預計汽車領域將保持強勁，並可能隨著芯片問題的緩解而改善。我們仍然有極低的經銷商庫存和來自消費者基礎的非常強勁的被壓抑的汽車需求。

'22 build rate, there'll be some, I don't know, around about 14 million units, and it's projected to grow to 16.4 million in '23 and perhaps 16.8 million in 2024. I think the chip shortage actually for us is a good thing. It's effectively extending the auto cycle and just given us a market that's going to be strong for longer.

'22 的構建速度，我不知道會有一些，大約 1400 萬個，預計到 23 年將增長到 1640 萬個，到 2024 年可能會增長到 1680 萬個。我認為實際上對我們來說芯片短缺是一件好事。它有效地延長了汽車週期，只是給了我們一個將在更長時間內保持強勁的市場。

Construction remains strong as evidenced with the fabrication backlog. Our last products steel backlogs are also strong and several of our divisions recorded record earnings and volume in the second quarter, demonstrating the market's depth. Infrastructure is a further meaningful support.

正如製造積壓所證明的那樣，建設仍然強勁。我們最後一批產品鋼材的積壓也很強勁，我們的幾個部門在第二季度錄得創紀錄的收益和銷量，顯示了市場的深度。基礎設施是進一步有意義的支持。

High demand continues for HVAC, appliance and other related products. Energy continues to improve. We're getting large orders in the South. I think it's significant to note that the import arrivals that the sort of Ukraine-Russia conflict drove early in the year, those are arriving now, but there's very, very little import interest for sort of October, November, December. And I believe we're going to see moderated import volumes in the second half. And significantly, it appears our hot-rolled coil order input rate has improved dramatically in the last week or so, showing signs of an inflection there.

對暖通空調、電器和其他相關產品的高需求繼續存在。能源繼續改善。我們在南方接到大訂單。我認為值得注意的是，烏克蘭-俄羅斯衝突在今年早些時候推動了進口到貨，現在已經到貨了，但對 10 月、11 月、12 月的進口興趣非常非常小。而且我相信我們將在下半年看到進口量放緩。值得注意的是，我們的熱軋卷訂單輸入率在過去一周左右顯著提高，顯示出拐點跡象。

Turning to Sinton. Commissioning continues on the hot side and tandem cold mill. The rest of the mill is fully operational. The hot mill has established target volume throughput rates with an average run rate of 75% to 80%. And I just want to emphasize that, that is when we are running, we're running at that rate.

轉向辛頓。熱軋機和冷連軋機繼續調試。工廠的其餘部分已全面投入運營。熱軋機已確定目標產量，平均運行率為 75% 至 80%。我只想強調一點，那就是當我們跑步時，我們正在以這樣的速度跑步。

Surface quality is excellent and it's proven to be superior to both our Columbus and our Butler facilities. The hot strip mill design is allowed for thermomechanical rolling. That's allowing higher strength grades to be produced at lower alloy content. The reported coil shape from our processes is excellent. And so in total, it affirms the technical process capability of the equipment and affirms the design decisions that were made some years ago for the mill.

表面質量非常好，被證明優於我們的哥倫布和巴特勒設施。熱軋帶鋼軋機設計允許熱機械軋製。這允許以較低的合金含量生產更高的強度等級。我們工藝報告的線圈形狀非常好。因此，總的來說，它肯定了設備的技術工藝能力，並肯定了幾年前為工廠做出的設計決策。

We are wrestling a little with uptime in July. We have a substation arcing issue that should be resolved this week. We have some unique Texas power supply issues right now. And we are seeing some miscellaneous equipment failures that are typical of commissioning an integrated line. The supply chain is aggravating that a little bit because when you have a -- when you need a part instead of getting it in a matter of hours, sometimes it takes a day or 2. So we are wrestling with those alligators, not atypical of a start-up of new plant, but we expect substantial resolution of these issues over the next few weeks.

我們在 7 月的正常運行時間方面有點掙扎。我們有一個變電站電弧問題，應該在本週解決。我們現在有一些獨特的德州供電問題。我們看到了一些雜項設備故障，這些故障是調試集成生產線的典型特徵。供應鏈正在加劇這一點，因為當你有一個 - 當你需要一個零件而不是在幾個小時內得到它時，有時需要一兩天。所以我們正在與那些鱷魚搏鬥，而不是非典型的新工廠的啟動，但我們預計這些問題將在未來幾週內得到實質性解決。

So the July issue may have cost us 100,000, 150,000 tons of production for the year, we think, to (inaudible) itself because July is not over yet, but certainly moving in the right direction, and we clearly expect to be EBITDA positive in the Q4.

因此，我們認為 7 月份的問題可能已經使我們今年的產量損失了 100,000、150,000 噸（聽不清），因為 7 月份還沒有結束，但肯定朝著正確的方向發展，我們顯然預計 EBITDA 將在第四季度。

We continue on our growth. We have the 4 value-added coating lines under construction and progressing well. They're targeted for the second half of 2023 to start up. As you know, we -- again, it's the strength of our overall strategy and our product mix, but we are the largest nonautomotive coater of flat rolled steels, and now have annual coating capacity of over 6 million tons. The 4 new lines will increase that capacity by an additional 1.1 million tons. We've created unique supply chain solutions for our customers, and these lines are almost always fully utilized with our highest-margin products.

我們繼續我們的成長。我們有 4 條增值塗裝線正在建設中，進展順利。他們的目標是在 2023 年下半年啟動。如您所知，我們——再次強調，這是我們整體戰略和產品組合的優勢，但我們是最大的非汽車扁鋼鍍膜商，現在年鍍膜能力超過 600 萬噸。 4條新生產線將使產能再增加110萬噸。我們為客戶創建了獨特的供應鏈解決方案，這些生產線幾乎總是與我們最高利潤的產品一起得到充分利用。

So switching now to aluminum dynamics. It's been an incredibly exciting week, and it has been incredible. I said it earlier, it's been staggering, the initial support that we're seeing from all our customers and a massive number of new customers.

所以現在切換到鋁動力學。這是令人難以置信的激動人心的一周，而且令人難以置信。我之前說過，這是令人震驚的，我們從所有客戶和大量新客戶那裡看到的初步支持。

To recap, it's a 650,000 metric ton a year flat-rolled facility that's going to be located in the Southeastern U.S. It have on-site melt and cast lab capacity of roughly 450,000 metric tons. It's a fully equipped flat-rolled mill with 2 cash lines, coating line and downstream processing and packaging capability. It's going to be supported by 2 satellite recycled aluminum slab casting centers, 1 in the Southwest U.S. and 1 in Mexico. And we expect the mill itself to start up in the first half of '25, the Mexican slab casting center in 2024 and the Southwest slap casting center in -- at the end of 2025.

回顧一下，這是一個年產 650,000 公噸的平軋設備，將位於美國東南部。它的現場熔煉和鑄造實驗室容量約為 450,000 公噸。這是一個設備齊全的平板軋機，擁有兩條收銀線、塗裝線和下游加工和包裝能力。它將由 2 個衛星再生鋁板坯鑄造中心提供支持，其中 1 個位於美國西南部，1 個位於墨西哥。我們預計工廠將在 25 年上半年啟動，墨西哥板坯連鑄中心將於 2024 年啟動，西南板坯連鑄中心將於 2025 年底啟動。

The financial impact a total project cost of some $2.2 billion. That expenditure is going to be spread over 4 years of the project. It's going to be 100% funded with available cash and cash flow through operations, and it's expected to add a good $650 million to $700 million in through-cycle consolidated annual EBITDA per year. And we certainly anticipate no requirement to add any additional debt.

財務影響使項目總成本約為 22 億美元。這筆支出將分攤到項目的 4 年。它將 100% 由可用現金和運營現金流提供資金，預計每年將在全週期合併年度 EBITDA 中增加 6.5 億至 7 億美元。我們當然預計不需要增加任何額外的債務。

From conversations on the call and subsequent conversations there appears to be some skepticism regarding our EBITDA per ton target of $1,000. We are confident of that number. And it speaks to what was driven by a myriad of things, but firstly, it's a greenfield facility. Everything is happening essentially on one side or the rolling process and coding, heat treating. It allows for an optimum site layout and flow of material and logistics, and you can quite easily reduce the labor, the man power input because of that and with robotics and automatic storage and retrievable systems.

從電話會議上的談話和隨後的談話來看，似乎對我們每噸 1,000 美元的 EBITDA 目標持懷疑態度。我們對這個數字充滿信心。它說明了無數事物的驅動力，但首先，它是一個新建設施。一切基本上都發生在一側或軋製過程和編碼，熱處理。它允許優化現場佈局以及材料和物流的流動，並且您可以很容易地減少勞動力和人力投入，並使用機器人技術以及自動存儲和可檢索系統。

So labor input is going to be dramatically less than the current industry. We will not be burdened by aged facilities and legacy costs. Energy, because of the -- just the state-of-the-art equipment that we be installing is going to be a lot lower. Yield improvements will dramatically improve the cost structure, pushing higher scrap content levels and transportation, given the satellite slab casting centers transporting solid dense slab as opposed to scrap is going to be a significant improvement. So we're very, very confident of that cost projection.

因此，勞動力投入將大大低於當前行業。我們不會被陳舊的設施和遺留成本所拖累。能源，因為我們正在安裝的最先進的設備將會低很多。考慮到衛星板坯連鑄中心運輸固體緻密板坯而不是廢鋼，產量提高將顯著改善成本結構，從而推動更高的廢鋼含量水平和運輸。因此，我們對成本預測非常非常有信心。

From an investment premise standpoint, obviously, we see a very clear gap in the supply and demand. There's a current and growing deficit -- supply deficit. We see a very close sort of overlap and business alignment. And essentially, you could -- if we filmed the steel mill and an aluminum mill in black and white, most people on the call today wouldn't be able to tell the difference. I mean it's -- all it is, is a different metal. We clearly will be able to execute the project well.

從投資前提來看，很明顯，供需缺口非常明顯。當前有一個不斷增長的赤字——供應不足。我們看到了一種非常緊密的重疊和業務一致性。從本質上講，你可以——如果我們用黑白拍攝鋼鐵廠和鋁廠，今天電話會議的大多數人都無法區分。我的意思是——它就是一種不同的金屬。我們顯然能夠很好地執行該項目。

It's incredibly cost-effective growth. Given the opportunities that are in the marketplace today, and the exorbitant multiples that are expected from sellers. This is a very, very CapEx efficient growth project.

這是令人難以置信的具有成本效益的增長。鑑於當今市場上的機會，以及對賣家的期望過高的倍數。這是一個非常非常有效的資本支出增長項目。

As I said, we have got absolutely great customer support. And at the end of the day, our success has always been driven by the SDI culture by our employees. It drives higher efficiency than anyone else, it drive lower cost. And if you look at that industry, it has a very, very, very steep cost curve. And that will obviously -- if you were at the lowest quartile, that's going to support margin through the cycle. So we're incredibly excited by the opportunity.

正如我所說，我們得到了絕對出色的客戶支持。歸根結底，我們的成功始終是由我們員工的 SDI 文化推動的。它比其他任何人都提高了效率，降低了成本。如果你看看那個行業，它的成本曲線非常、非常、非常陡峭。這顯然會 - 如果你處於最低四分位數，那將支持整個週期的利潤率。所以我們對這個機會感到非常興奮。

So in general, it's been a phenomenal week. It's been a phenomenal year for SDI that will continue through the rest of this year. Our team provides our success, the foundation for that success, and I thank each of them for their hard work and their commitment. I remind each and everyone to remember, safety is always our first priority. We're going to continue to focus on providing superior value for our customers, through our company, team members and shareholders alike, and we look forward to creating new opportunities for everyone in the years ahead.

所以總的來說，這是非凡的一周。對於 SDI 來說，這是非凡的一年，並將持續到今年餘下的時間。我們的團隊為我們的成功奠定了基礎，我感謝他們每個人的辛勤工作和承諾。我提醒每一個人要記住，安全永遠是我們的首要任務。我們將繼續專注於通過我們的公司、團隊成員和股東等為我們的客戶提供卓越的價值，我們期待在未來幾年為每個人創造新的機會。

So with that said, I'd like to pass the call over for questions. Holly?

話雖如此，我想通過電話提問。冬青？

(Operator Instructions) Your first question for today is coming from Emily Chieng with Goldman Sachs.

（操作員說明）您今天的第一個問題來自高盛的 Emily Chieng。

My question is just around your power cost exposures across the portfolio. Can you highlight to us what is hedged or fixed price power and what still remains on spot? Is Sinton actually exposed to market prices? Or have you since put some hedges in place there?

我的問題是關於您在整個投資組合中的電力成本風險敞口。您能否向我們強調一下什麼是對沖或固定價格權力，以及哪些仍然存在？ Sinton 是否真的受到市場價格的影響？或者你有沒有在那裡放置一些樹籬？

Emily, we have -- across the portfolio of those steel mills, we have a mix. So for example, and then to be able to split it out in a manner on a percentage basis, I'll have to kind of go back and talk to the team. But I would say it's probably at least 50% to 60% that's contractual, and they tend to be long-term contracts of 2 to 3 years, have escalating factors included in them. And the remainder is spot.

艾米麗，我們有 - 在這些鋼廠的投資組合中，我們有一個組合。例如，為了能夠以百分比的方式將其分配出去，我將不得不回去與團隊交談。但我會說至少有 50% 到 60% 是合同性的，而且它們往往是 2 到 3 年的長期合同，其中包含不斷升級的因素。其餘的是現貨。

There is some that we hedge. Sinton right now is a little bit difficult simply because, as Mark mentioned, we're in startup and they actually constructed a massive substation on our behalf in the region. And so I think most of Sinton at this point is still on a spot basis because of the stop and start that we've been having right now in July.

有些是我們對沖的。 Sinton 現在有點困難，因為正如 Mark 所說，我們正在啟動，他們實際上代表我們在該地區建造了一個大型變電站。因此，我認為目前 Sinton 的大部分時間仍處於現場狀態，因為我們在 7 月份一直處於停停狀態。

And Emily, that's the electrical power. On the natural gas side of things, we typically hedge around about 60%, 65% of our consumption.

艾米麗，那是電力。在天然氣方面，我們通常對沖大約 60%、65% 的消費。

Your next question for today is coming from Seth Rosenfeld with BNP Paribas.

您今天的下一個問題來自法國巴黎銀行的 Seth Rosenfeld。

If I can ask one with regards to (inaudible) fabrication and non-resi activity. At the time of Q1 results, I think you noted still record backlog and that change site to a near record. Can you give us any color for how significant of the contraction in backlog tons or duration has been realized? And on the pricing side, you commented earlier, aggregate price realizations will increase coming quarters. But on the most recently [one] orders, are we seeing any downward inflection of light?

如果我可以問一個關於（聽不清）製造和非 resi 活動的問題。在第一季度的結果時，我想你注意到仍然記錄積壓，並且將站點更改為接近記錄。你能告訴我們積壓噸數或持續時間的收縮有多大嗎？在定價方面，您之前評論過，未來幾個季度的總價格實現將增加。但是在最近的 [one] 訂單中，我們是否看到任何向下的光線變化？

Thanks, Seth. So as it relates to the fabrication business, we said near records just because of recent have people back checking all the time and if it's not a record, we have to say near record. There has been some contraction from the peaks, but we're still having a backlog that's well into 2023. So it's not something that we're concerned about or we think it's endemic of anything changing significantly.

謝謝，賽斯。所以因為它涉及到製造業務，我們說接近記錄只是因為最近人們一直在回來檢查，如果它不是記錄，我們不得不說接近記錄。高峰期出現了一些收縮，但到 2023 年我們仍然有積壓。所以這不是我們擔心的事情，或者我們認為這是任何重大變化的地方性。

From a pricing perspective, we're still having very strong price support, and there is still increased pricing that is included in the backlog. So we're feeling very good about the nonresidential market, specifically for our steel fabrication business.

從定價的角度來看，我們仍然擁有非常強大的價格支持，並且積壓訂單中仍然包含增加的定價。所以我們對非住宅市場感覺很好，特別是我們的鋼鐵製造業務。

Mark, do you have anything to add?

馬克，你有什麼要補充的嗎？

No, no. That sums it up well.

不，不。這總結得很好。

Okay. And I've got a separate question, please. On the working capital side, I think on the call earlier this week, you had a potential tailwind from working capital release moving forward. And Q2, you saw another quarter of large investment. Can you give us any color on your expectations for second half as steel and raw materials price decline?

好的。我有一個單獨的問題，拜託。在營運資金方面，我認為在本週早些時候的電話會議上，您可能會從未來的營運資金釋放中獲得順風。第二季度，您看到了另一季度的大額投資。隨著鋼鐵和原材料價格的下跌，您能否就您對下半年的預期發表任何看法？

Absolutely, Seth. We're still -- so I don't -- I guess I wouldn't call it a significant increase. I think the increase in the second quarter for working capital was just a little over $100 million. So I thought small, but given the size of the working capital at this point in time, it was incremental. But we would expect a pretty significant working capital release in the probably 2 to 3 quarters.

當然，賽斯。我們仍然 - 所以我不 - 我想我不會稱之為顯著增加。我認為第二季度營運資金的增長僅略高於 1 億美元。所以我認為很小，但考慮到此時的營運資金規模，它是增量的。但我們預計在可能的 2 到 3 個季度內會有相當大的營運資金釋放。

And it has to do with not necessarily just [even] have seen some weakness, as Mark mentioned, or some softening in the flat-rolled prices, but we've also been specifically reducing physical inventories at our steel fabrication business as they had extra substrate for different reasons on the ground from a steel perspective. So there's some structural things that we're doing as well as from a pricing standpoint. So again, second half of the year into next year, I would expect working capital release.

正如馬克所說，這不一定只是 [甚至] 出現了一些疲軟，或者平板軋材價格有所走軟，但我們也一直在專門減少我們鋼鐵製造業務的實物庫存，因為他們有額外的庫存從鋼的角度來看，由於不同原因在地面上的基材。因此，從定價的角度來看，我們正在做一些結構性的事情。所以再一次，從下半年到明年，我預計營運資金會釋放。

Your next question for today is coming from Carlos De Alba with Morgan Stanley.

您今天的下一個問題來自摩根士丹利的 Carlos De Alba。

The question is on CapEx progression for the aluminum project announced, how do you see the CapEx for this year and for the coming years until the project is ready to start up?

問題是關於宣布的鋁項目的資本支出進展，您如何看待今年和未來幾年的資本支出，直到項目準備好啟動？

Carlos, I'll point you to the presentation that's still out on the website that we provided on Tuesday. But from a CapEx progression standpoint, we believe we'll spend somewhere between $200 million and $300 million on the flat-rolled aluminum project in 2022. That would be additive to the number that I gave you earlier for the estimate for the rest of 2022 of being in that $350 million to $400 million range

Carlos，我將向您指出我們週二提供的網站上仍然存在的演示文稿。但從資本支出進展的角度來看，我們相信我們將在 2022 年在扁鋁項目上花費 2 億至 3 億美元。這將增加我之前為您提供的 2022 年剩餘時間的估計數字在 3.5 億到 4 億美元的範圍內

And then the bulk of the spend will be in 2023 and 2024, each of those years being around $750 million to $800 million. And then finally, we would have the remainder, which is around $300 million to $350 million in that 2025, 2026 time frame.

然後大部分支出將在 2023 年和 2024 年，每年約為 7.5 億至 8 億美元。最後，我們將擁有剩餘的部分，在 2025 年、2026 年的時間框架內約為 3 億至 3.5 億美元。

So it's over a period of 4 to 5 years where we'll be spending the investment. And that's why Mark was very clear, and I've tried to be clear as well that this will readily be funded through cash flow and cash flow from operations.

因此，我們將花費 4 到 5 年的時間進行投資。這就是為什麼馬克非常清楚，我也試圖澄清這將很容易通過現金流和運營現金流獲得資金。

Fair enough. And if I may just try another one quickly. Have you seen any particular pricing pressure in the steel Southern markets or Northern Mexico with the ramp-up of Sinton as well as the ramp-up of -- steel ramp-up of Ternium's facility as well as metals facility, a little bit further south in the Mexican market?

很公平。如果我可以快速嘗試另一個。你有沒有看到南方鋼鐵市場或墨西哥北部鋼鐵市場有任何特殊的定價壓力，因為 Sinton 的產能增加以及 Ternium 工廠和金屬工廠的鋼鐵產能增加，再往南一點在墨西哥市場？

Well, I think, Carlos, you saw generally a sort of erosion on the hot band, hot-rolled coil pricing across, across the U.S. in general, and it was a little stronger in the South because of the reasons that you suggest. As I suggested, we're seeing our order activity on hot band recently pick up dramatically. And so I think there's no support there in that product category.

好吧，我認為，卡洛斯，你看到整個美國的熱軋帶、熱軋卷材價格普遍受到侵蝕，由於你提出的原因，南方的價格稍微強一些。正如我所建議的，我們看到我們最近在熱門樂隊上的訂單活動急劇增加。所以我認為該產品類別沒有支持。

Your next question for today is coming from Timna Tanners with Wolfe Research. .

您今天的下一個問題來自 Wolfe Research 的 Timna Tanners。 .

I wanted to ask a little bit more, if I could, I know on the last call, when we've spoken to you, you mentioned that you were looking at a pig iron alternative kind of leveraging your iron dynamics operations. So I was wondering if you could expand on that.

我想再問一點，如果可以的話，我知道在上次通話中，當我們與您交談時，您提到您正在尋找一種利用您的鐵動力學操作的生鐵替代方案。所以我想知道您是否可以對此進行擴展。

And then if I could throw in one more. Just and I thought it was interesting that you mentioned the market is pessimistic, but your customers are optimistic. So I was just hoping you could also elaborate on that.

然後如果我能再扔一個。只是，我覺得有趣的是你提到市場是悲觀的，但你的客戶是樂觀的。所以我只是希望你也能詳細說明一下。

Well, from a pig iron perspective, we certainly would like to pursue sort of some level of captive supply and self-sufficiency. And not unlike the last call, we are pursuing or exploring whether the Iron Dynamics technology or an alternative technology is best suited for us. But that's sort of a project in process going forward, Timna. If there were to be a project, again, from a capital perspective, that's not a huge, huge issue. I'm sorry, I didn't catch the - quite the second comment or question.

好吧，從生鐵的角度來看，我們當然希望追求某種程度的自給自足和自給自足。與上次通話一樣，我們正在追求或探索 Iron Dynamics 技術或替代技術是否最適合我們。但這是一個正在進行的項目，蒂姆納。如果有一個項目，同樣，從資本的角度來看，這不是一個巨大的、巨大的問題。對不起，我沒聽清楚 - 第二個評論或問題。

Thanks. on Iron Dynamics. That's helpful. So it doesn't sound like a big capital use then, is that what you're saying?

謝謝。關於鐵動力學。這很有幫助。所以這聽起來不像是一個大的資本使用，這就是你的意思嗎？

Absolutely not. Yes

絕對不。是的

Okay. Helpful. No, I just wanted to...

好的。有幫助。不，我只是想...

You had a market question?

你有一個市場問題？

Yes, if you wouldn't mind elaborating, in the release, you talked about how there's a prevailing pessimism, but your customers are optimistic? And then you talked about hot-rolled order entry improving recently. And I'm just wondering if you could elaborate a bit on how that contrasts with the pessimism and maybe some elevated inventories, please?

是的，如果您不介意詳細說明，在發布中，您談到瞭如何普遍存在悲觀情緒，但您的客戶是樂觀的？然後你談到了最近熱軋訂單輸入的改進。我只是想知道你是否可以詳細說明一下這與悲觀情緒以及一些庫存增加的對比有何不同，好嗎？

Well, I guess, all we can do or all I can do is look through the lens of our order book. And as I mentioned over the years, a wise man told me that, hey, the order book tells all, but it tells all for us. I can't speak for the rest of the industry.

好吧，我想，我們能做的或我能做的就是從訂單簿的角度看。正如我多年來提到的那樣，一位智者告訴我，嘿，訂單說明了一切，但它為我們說明了一切。我不能代表整個行業。

But we're not -- we haven't seen a dramatic structural sort of change in underlying demand. Order activity has remained pretty strong. There was a little softness in hot-rolled coil, and that's rebounding, I think.

但我們不是——我們還沒有看到潛在需求發生戲劇性的結構性變化。訂單活動仍然相當強勁。熱軋卷材有一點柔軟，我認為這是反彈。

And so there's -- when I say sort of motion in the marketplace, there seems to be a cloud out there that you got recessionary pressures and all these things going to drive the market there. As just pointed out, right now, through our order book, we don't see it.

所以有 - 當我說市場上的某種運動時，那裡似乎有一片烏雲，你有經濟衰退的壓力，所有這些事情都會推動那裡的市場。正如剛才所指出的，現在，通過我們的訂單簿，我們看不到它。

Your next question for today is coming from Phil Gibbs with KeyBanc.

您今天的下一個問題來自 KeyBanc 的 Phil Gibbs。

Mark, you mentioned spot prices for pig iron are clearly coming down, and we see that, too. But are you all locked into higher numbers than that prevailing spot if you chose to hedge a lot more forward during the war?

馬克，您提到生鐵現貨價格明顯下降，我們也看到了這一點。但是，如果您選擇在戰爭期間更多地向前對沖，那麼您是否都被鎖定在比那個主要位置更高的數字上？

We had, I would say, a mix. There were right at the onset of the conflict. We did buy a couple of boats were at the high end of that range that you saw (inaudible). But we now have a kind of a mix of material. I think the highest we may have paid is like $900 or so a ton. We got a couple of boatloads of that. But then we have a lot more material coming in at lower pricing. And the [forward] boats are tending to be indexed against the market price. So it shouldn't be a major impact for us.

我想說，我們有一個混合體。衝突一開始就有。我們確實購買了幾艘船，它們處於您所看到的範圍的高端（聽不清）。但是我們現在有一種混合材料。我認為我們可能支付的最高價格是 900 美元左右一噸。我們得到了幾船。但是後來我們有更多的材料以更低的價格進入。並且[遠期] 船隻傾向於與市場價格掛鉤。所以對我們來說應該不會有太大影響。

Okay. And then Theresa, the normal mix dispersion on sheet, if you have it?

好的。然後是Theresa，紙上的正常混合分散體，如果你有的話？

Absolutely, Phil. The hot rolled P&O number is 861,000 tons; cold rolled, 131,000 tons; and the coated products are 1,132,000 tons.

當然，菲爾。熱軋P&O數量86.1萬噸；冷軋，13.1萬噸；塗層產品113.2萬噸。

And if I could sneak in one more here. Just on Sinton, have you all changed your thought process on what it's going to do this year in terms of volume contribution to the second half? I'm just trying to read what you all have put now in terms of having lost production in July, but having got to high melt utilization at one point. So just trying to think through what the next few months look like here because we're getting to the tail end of the year.

如果我能在這裡再偷偷溜進去一個。就 Sinton 而言，你們是否都改變了對今年下半年銷量貢獻的思考過程？我只是想了解一下你們現在所說的關於 7 月份停產但在某一時刻達到高熔體利用率的情況。所以只是想看看接下來的幾個月會是什麼樣子，因為我們快到年底了。

Got it. The -- and again, it's -- we're wrestling alligators a little, I guess, and sometimes you don't know when you're going to win. But I suggested earlier, our July issues have probably cost us 100,000, 150,000 tons, Phil, from our annual sort of projection, and we were around 1.5-ish. So you can do the math, Phil.

知道了。我猜，我們正在和鱷魚搏鬥一點，有時你不知道什麼時候會贏。但我早些時候建議過，根據我們的年度預測，我們 7 月的問題可能已經花費了我們 100,000 噸、150,000 噸，菲爾，我們大約是 1.5-ish。所以你可以做數學，菲爾。

Okay. But that number was relative to the 1.5-ish that's kind of just what I wanted to hear in terms of understanding that. And then last question from a housekeeping standpoint is just what the updated CapEx numbers for this year, if I missed it because I know you got the aluminum project and some other things that you had done there?

好的。但這個數字是相對於 1.5-ish 而言的，這正是我想听到的理解這一點。然後從家政的角度來看最後一個問題就是今年更新的資本支出數字，如果我錯過了它，因為我知道你有鋁項目和你在那裡做過的其他一些事情？

So Phil, for the second half of the year, excluding the aluminum project, we estimate CapEx to be somewhere between $350 million and $400 million, and a majority of that relates to the 4 new flat-rolled coating lines.

所以菲爾，對於下半年，不包括鋁項目，我們估計資本支出在 3.5 億美元到 4 億美元之間，其中大部分與 4 條新的平軋塗層線有關。

If we look at what we may spend on the aluminum investment, we'll likely spend an additional $200 million to $300 million. So the total second half of the year is likely to be somewhere between $550 million and call it, yes, around $550 million, $600 million.

如果我們看看我們可能會在鋁投資上花費多少，我們可能會額外花費 2 億至 3 億美元。因此，今年下半年的總額可能在 5.5 億美元之間，是的，大約 5.5 億美元，6 億美元。

Your next question for today is coming from Andrew Keches with Barclays.

您今天的下一個問題來自 Barclays 的 Andrew Keches。

Theresa, I don't want to belabor the point, but I want to try and ask the capital deployment question from earlier in the week in a slightly different way. So you have the 2 turns of net debt threshold out there, but the reality is you've been operating at about half of that for the past year or so. And you made the comment, I think it's obvious that without buybacks, you'd eventually find yourself net cash, and you also don't want to go to the bottom end of that range.

Theresa，我不想強調這一點，但我想嘗試以稍微不同的方式詢問本週早些時候的資本部署問題。所以你有兩輪淨債務門檻，但現實是你在過去一年左右的時間裡一直在以大約一半的速度運營。您發表了評論，我認為很明顯，如果沒有回購，您最終會發現自己的淨現金，而且您也不想跌至該範圍的底部。

So I guess what would be helpful is to know what you think the right level of leverage is for the business at this point in the cycle? Is 2x the level where you're comfortable getting back to? Or should we take the fact that you've been operating below that for the last year or so as an indication that you want to keep some flexibility within that range, so we're not just going to intentionally lever back up?

所以我想知道你認為在這個週期的這個階段對企業來說合適的槓桿水平是有幫助的嗎？ 2x 是您願意回到的水平嗎？或者我們是否應該將您在過去一年左右的運營水平低於這一事實作為您希望在該範圍內保持一定靈活性的跡象，所以我們不只是故意增加槓桿？

No, the intent isn't to intentionally lever the balance sheet. We like to maintain it at a flexible level to allow for growth projects just like we're doing right now. So we did this with Sinton as well. We started out with an additional cash, lower leverage on the balance sheet so that we were able to very easily commit to a capital investment that would be funded through cash and cash flow from operations while maintaining flexibility and optionality in case there were to be some sort of acquisition opportunity that were to become available, et cetera, or in the absence of that, so that we're able to continue to have our very, what we believe, is a positive shareholder distribution plan, which allows for us to continue to keep increasing the dividend at an appropriate level because it is a forever type of investment for us. We want to make sure it's maintained at a manageable level.

不，目的不是故意撬動資產負債表。我們希望將其保持在靈活的水平，以允許像我們現在正在做的增長項目。所以我們也和 Sinton 一起做了這個。我們從額外的現金開始，資產負債表上的槓桿率較低，因此我們能夠非常輕鬆地進行資本投資，該投資將通過運營現金和現金流提供資金，同時保持靈活性和選擇性，以防萬一某種收購機會是可用的，等等，或者在沒有這種機會的情況下，這樣我們就能夠繼續擁有我們非常，我們相信，是一個積極的股東分配計劃，這使我們能夠繼續將股息保持在適當的水平，因為這對我們來說是一種永遠的投資。我們希望確保它保持在可管理的水平。

And then in addition to that, we have the opportunity to strategically and opportunistically use the share buyback program. So there is no intention to relever the balance sheet, but we are keeping that flexibility within it so that we can easily fund these projects.

除此之外，我們還有機會戰略性地和機會主義地使用股票回購計劃。因此，我們無意重新調整資產負債表，但我們正在保持這種靈活性，以便我們可以輕鬆地為這些項目提供資金。

Okay. Maybe just as a quick follow-up. So what -- you've talked about the cash flow profile structurally changing, but the business is also growing. So what do you think the right level of cash is for the business going forward?

好的。也許只是作為一個快速跟進。那又如何——你談到了現金流狀況的結構性變化，但業務也在增長。那麼，您認為未來業務的正確現金水平是多少？

We actually don't manage to a cash level on the balance sheet. We look at liquidity in totality. And so yes, I'm not really comfortable answering that question.

我們實際上並沒有達到資產負債表上的現金水平。我們從整體上看待流動性。所以是的，我不太願意回答這個問題。

(Operator Instructions) There appear to be no further questions in queue. I'd like to turn the call back over to Mr. Millett for any closing remarks.

（操作員說明）隊列中似乎沒有其他問題。我想將電話轉回給米利特先生，以聽取任何結束語。

Well, thank you, Holly. Again, thank you, everyone, for being on the call joining us today. Just finally, I'd like to congratulate once again the team. Absolutely fantastic performance this past quarter, and we're continuing that through the rest of the year.

好吧，謝謝你，霍莉。再次感謝大家今天加入我們的電話會議。最後，我想再次祝賀團隊。上個季度的表現絕對出色，我們將在今年餘下的時間裡繼續這樣做。

To our customers, again, you have been loyal to us. Thank you for your support and for the growing support. And I would also like to look forward to welcoming our new customers on the aluminum side and any folks that want an incredibly dynamic career, come join us, we're going to be making some aluminum.

再次，對我們的客戶，您一直忠於我們。感謝您的支持和不斷增長的支持。我也期待在鋁方面歡迎我們的新客戶以及任何想要擁有令人難以置信的充滿活力的職業的人，加入我們，我們將製造一些鋁。

So thank you very much, everyone. Have a great day. Bye-bye

非常感謝大家。祝你有美好的一天。再見

Once again, ladies and gentlemen, that does conclude today's call. Thank you for your participation, and have a great and safe day.

再次，女士們，先生們，今天的電話會議結束了。感謝您的參與，祝您度過愉快安全的一天。