Steel Dynamics Inc (STLD) 2022 Q3 法說會逐字稿

Good day, and welcome to the Steel Dynamics' Third Quarter 2022 Earnings Conference Call. (Operator Instructions) Please be advised this call is being recorded today, October 20, 2022, and your participation implies consent to our recording of this call. If you do not agree to these terms, please disconnect.

美好的一天，歡迎參加 Steel Dynamics 2022 年第三季度收益電話會議。 （操作員說明）請注意，本次通話將於 2022 年 10 月 20 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, Ali. Good morning, and welcome to Steel Dynamics' Third 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. Leading today's call are Mark Millett, Chairman, President 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.

謝謝你，阿里。早上好，歡迎參加 Steel Dynamics 2022 年第三季度收益電話會議。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。領導今天的電話會議的是 Steel Dynamics 董事長、總裁兼首席執行官 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.

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。

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

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。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，在任何後續SEC 表格 10-Q。

You'll also find any referenced non-GAAP financial measures reconciled to the most directly comparable GAAP measures in the press release issued yesterday entitled, Steel Dynamics Reports Third Quarter 2022 results.

您還可以在昨天發布的題為“鋼鐵動力報告 2022 年第三季度業績”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可比的公認會計原則措施相一致。

And now I'm pleased to turn the call over to Mark.

現在我很高興將電話轉給馬克。

Thank you, David. I forgot to turn the microphone on there as always. But thank you, everyone, for being with us on our third quarter earnings call. It certainly was an exciting quarter with great performance by the team and growth on many fronts.

謝謝你，大衛。我忘了像往常一樣在那裡打開麥克風。但是，謝謝大家與我們一起參加第三季度財報電話會議。這無疑是一個令人興奮的季度，團隊表現出色，並且在許多方面都有增長。

Firstly, a great welcome to the ROCA team, centered in Monterrey. In combination with the former Zimmer Group, OmniSource Mexico, now is a significant recycling presence within Mexico that will support their existing Mexican customer base while providing strategic sourcing opportunities for our Sinton and Columbus steel mills and soon to be aluminum mill.

首先，非常歡迎以蒙特雷為中心的 ROCA 團隊。與前 Zimmer 集團 OmniSource Mexico 相結合，現在是墨西哥境內重要的回收業務，將支持其現有的墨西哥客戶群，同時為我們的 Sinton 和 Columbus 鋼廠提供戰略採購機會，並很快成為鋁廠。

Sinton has turned the corner and is showing significant improvement. The team is also making great progress on our aluminum flat rolled strategy, which I will share later on the call.

辛頓已經轉危為安，並顯示出顯著的進步。該團隊還在我們的鋁平板軋製戰略上取得了很大進展，我將在電話會議後分享。

Operationally, our third quarter was a great quarter, achieving several new benchmarks, including record steel and steel fabrication shipments and record cash flow from operations, all supporting our cash allocation strategy and commitment to further expansion of shareholder value.

在運營方面，我們的第三季度是一個偉大的季度，實現了幾個新的基準，包括創紀錄的鋼鐵和鋼鐵製造出貨量以及創紀錄的運營現金流，所有這些都支持我們的現金分配戰略和進一步擴大股東價值的承諾。

I continue to be incredibly proud of our teams. They are our foundation and the catalyst of our current and future success. It's their culture of excellence and the strategic positioning executed over the last number of years that allows us to maximize opportunities, resulting in higher lows and higher highs through the cycle.

我繼續為我們的團隊感到無比自豪。它們是我們的基礎，也是我們當前和未來成功的催化劑。正是他們的卓越文化和過去幾年執行的戰略定位使我們能夠最大限度地利用機會，從而在整個週期中創造更高的低點和更高的高點。

So a great quarter, yet none of this matters without keeping our teams safe. Often employees are described as a company's most important resource. For us, they are more than that. They are family and the SDI family now is 26,000 strong. We are focused to provide the very best for their health, safety and welfare.

這是一個很棒的季度，但如果不保證我們團隊的安全，這一切都不重要。通常，員工被描述為公司最重要的資源。對我們來說，它們不止於此。他們是一家人，SDI 家族現在有 26,000 人。我們致力於為他們的健康、安全和福利提供最好的服務。

We're actively engaged in safety at all times at every level of our organization, keeping it top of mind and an active conversation throughout the company. We will not rest until we consistently achieve our goal of 0 incidents.

我們始終在組織的各個層面積極參與安全工作，始終將其放在首位，並在整個公司進行積極的對話。在我們始終如一地實現 0 事件的目標之前，我們不會休息。

But before I continue, Theresa, would you like to give us some details?

但在我繼續之前，特蕾莎，你願意給我們一些細節嗎？

Thanks, Mark. Good morning, everyone. I add my sincere appreciation and personal congratulations to the team on another strong operational and financial performance.

謝謝，馬克。大家，早安。我對團隊再次取得強勁的運營和財務業績表示衷心的感謝和個人祝賀。

Our third quarter 2022 net income was $914 million or $5.03 per diluted share, inclusive of costs of $111 million or $0.43 per diluted share associated with the continued start-up of our Sinton Texas Flat Roll Steel Mill. Excluding these costs, third quarter 2022 adjusted net income was $992 million or $5.46 per diluted share.

我們 2022 年第三季度的淨收入為 9.14 億美元或每股攤薄收益 5.03 美元，其中包括與繼續啟動我們的 Sinton Texas Flat Roll Steel Mill 相關的 1.11 億美元或每股攤薄收益 0.43 美元的成本。不計這些成本，2022 年第三季度調整後的淨收入為 9.92 億美元或每股攤薄收益 5.46 美元。

Third quarter revenues of $5.7 billion declined 9% sequentially based on lower flat-rolled steel and scrap pricing. Our third quarter 2022 operating income was $1.2 billion, lower than sequential results due to lower pricing and resulting metal spread compression in our flat-rolled steel operations.

由於扁平材和廢鋼價格下降，第三季度收入為 57 億美元，環比下降 9%。我們 2022 年第三季度的營業收入為 12 億美元，低於上一季度的業績，原因是定價降低以及我們的扁鋼業務導致金屬價差壓縮。

Our steel operations generated solid operating income of $658 million in the third quarter, with record shipments, as Mark mentioned, at 3.2 million tons, of which Sinton contributed 268,000 tons. Sequential earnings were significantly lower due to the previously mentioned metal spread compression within our flat-rolled steel businesses. In contrast, our long product steel operations experienced metal spread expansion as average scrap cost declined more than product pricing in the quarter. In fact, our Structural and Rail and Roanoke Bar divisions each achieved record earnings. Congratulations to those teams.

我們的鋼鐵業務在第三季度創造了 6.58 億美元的穩健營業收入，正如馬克所說，出貨量達到創紀錄的 320 萬噸，其中 Sinton 貢獻了 268,000 噸。由於之前提到的我們的扁鋼業務中的金屬價差壓縮，連續收益顯著降低。相比之下，由於本季度平均廢鋼成本下降幅度超過產品定價，我們的長材鋼材業務經歷了金屬價差擴大。事實上，我們的 Structural and Rail 和 Roanoke Bar 部門都取得了創紀錄的收益。祝賀這些團隊。

Third quarter operating income for our mills recycling operations declined to $10 million as ferrous pricing declined month-over-month through the quarter, resulting in significant metal margin compression. But the team continues to effectively lever the strength of our circular manufacturing operating model, benefiting both our steel and metals recycling operations by providing higher quality scrap to our steel mills, which improves furnace efficiency and by reducing company-wide working capital requirements. I also give my welcome to the ROCA team.

由於黑色金屬價格在整個季度環比下降，導致金屬利潤率顯著壓縮，我們工廠回收業務的第三季度營業收入下降至 1000 萬美元。但該團隊繼續有效地利用我們循環製造運營模式的優勢，通過向我們的鋼廠提供更高質量的廢料，從而提高熔爐效率並降低公司範圍內的營運資金需求，從而使我們的鋼鐵和金屬回收業務受益。我也歡迎 ROCA 團隊。

A huge congratulations once again to our steel fabrication team. They achieved record third quarter operating income of $677 million. These earnings were driven by record average pricing, record shipments and lower steel input costs. Steel joists and deck demands remained solid as evidenced by our continued strong order backlog, which extends well through the first half of 2023.

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三季度營業收入 6.77 億美元。這些收益是由創紀錄的平均價格、創紀錄的出貨量和較低的鋼鐵投入成本推動的。鋼托樑和甲板需求保持穩定，我們持續強勁的訂單積壓證明了這一點，該訂單一直持續到 2023 年上半年。

We generated record cash flow from operations of $1.5 billion in the third quarter as strong results and release of working capital benefited cash flow. Year-to-date 2022, we've generated a record $3.3 billion. Our cash generation is consistently strong based on our differentiated circular business model and highly low-cost variable cost structure. At the end of September, we had record liquidity of $3.2 billion comprised of cash and short-term investments of $2 billion and an undrawn unsecured revolver of $1.2 billion.

由於強勁的業績和營運資金的釋放使現金流受益，我們在第三季度從運營中產生了創紀錄的 15 億美元的現金流。 2022 年年初至今，我們創造了創紀錄的 33 億美元。基於我們差異化的循環業務模式和高度低成本的可變成本結構，我們的現金生成始終強勁。截至 9 月底，我們的流動性達到創紀錄的 32 億美元，其中包括 20 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。

Year-to-date 2022, we funded $565 million in capital investments. For the fourth quarter of 2022, we estimate capital investments will be close to $400 million, of which about $200 million is related to our recently announced aluminum flat-rolled investments, with much of the remaining capital related to our 4 new flat-rolled coating lines that will be located in Sinton and Heartland.

2022 年年初至今，我們為資本投資提供了 5.65 億美元的資金。對於 2022 年第四季度，我們估計資本投資將接近 4 億美元，其中約 2 億美元與我們最近宣布的鋁壓延投資有關，其餘大部分資本與我們的 4 種新壓延塗層有關將位於 Sinton 和 Heartland 的線路。

We maintained our cash dividend at $0.34 per common share after increasing at 31% in the first quarter. We also repurchased $482 million of our common stock in the third quarter representing over 3% of our outstanding shares. Year-to-date, we paid cash dividends of $177 million and repurchased $1.4 billion or 10% of our outstanding shares, representing a 48% net income distribution ratio. At the end of the third quarter, $245 million remained available under our current share repurchase authorization.

在第一季度增長 31% 之後，我們將現金股息維持在每股普通股 0.34 美元。我們還在第三季度回購了 4.82 億美元的普通股，占我們流通股的 3% 以上。年初至今，我們支付了 1.77 億美元的現金股息，並回購了 14 億美元或 10% 的流通股，淨收入分配率為 48%。截至第三季度末，根據我們當前的股票回購授權，仍有 2.45 億美元可用。

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 shareholder distributions comprised of a base positive dividend profile that's complemented with a variable share repurchase program while remaining dedicated to preserving our investment-grade credit designation.

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，股東分配包括基本的正股利，輔以可變的股票回購計劃，同時繼續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 capital allocation philosophy. We have 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.

我們最近宣布的鋁投資符合我們不變的資本配置理念。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。

Our cash flow profile has fundamentally changed over the last 5 years. We will readily fund our flat-rolled aluminum investments with available cash and cash flow from operations. We also plan to continue strong shareholder distributions as we clearly demonstrated in the third quarter. We're squarely positioned for the continuation of sustainable optimized long-term value creation.

在過去的 5 年中，我們的現金流狀況發生了根本性的變化。我們將用可用的現金和運營現金流為我們的平板鋁投資提供資金。正如我們在第三季度清楚地表明的那樣，我們還計劃繼續強勁的股東分配。我們為持續優化的長期價值創造做好了充分的準備。

Sustainability is also a significant 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, we're excited about our newly formed joint venture with Aymium, a leading producer of renewable biocarbon products. We believe our first joint venture facility will decrease our steel Scope 1 and 2 greenhouse gas emissions by as much as 25%.

可持續發展也是我們長期價值創造戰略的重要組成部分，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，我們對與領先的可再生生物碳產品生產商 Aymium 新成立的合資企業感到興奮。我們相信，我們的第一個合資工廠將使我們的鋼鐵範圍 1 和 2 的溫室氣體排放量減少多達 25%。

We have an actionable path to our 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.

我們有一條更易於管理的實現碳中和的可行途徑，而且我們相信比我們的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。

In conclusion, I know some of you track the details behind our flat-rolled shipments. And so for the quarter, we shipped hot-rolled and P&O of 951,000 tons; cold rolled of 139,000 tons; and finally, coated flat-rolled products of 1,102,000 tons, for a total of 2,192,000 tons of flat-rolled shipments. Mark?

總之，我知道你們中的一些人跟踪了我們扁平材貨物背後的細節。因此，本季度，我們發運了 951,000 噸的熱軋和 P&O；冷軋13.9萬噸；最後是塗裝板坯110.2萬噸，合計板坯出貨量219.2萬噸。標記？

Super. Thank you, Theresa. And certainly, incredible results from the steel fabrication platform, a product that is obviously a market tailwind, but our strategic positioning over the years. We had record operating income of $677 million in the quarter with record shipments of 218,000 tons.

極好的。謝謝你，特蕾莎。當然，鋼鐵製造平台取得了令人難以置信的成果，該產品顯然是市場順風，但我們多年來的戰略定位。本季度我們的營業收入達到創紀錄的 6.77 億美元，出貨量達到創紀錄的 218,000 噸。

Nonresidential construction markets remain strong as would be suggested by the macro indicators. They all remain positive. ABI index of a little over 53. AAA reports business conditions remain generally strong, and Dodge Momentum Index improved 6% in September.

正如宏觀指標所暗示的那樣，非住宅建築市場依然強勁。他們都保持積極的態度。 ABI 指數略高於 53。AAA 報告商業狀況總體保持強勁，道奇動量指數在 9 月份上漲 6%。

Nonresidential starts and build rates of forecast to remain good into 2023. More importantly, our customers tell us demand remains solid in spite of economic uncertainty. Order activity is better paced versus the frenetic pace of the recent past and remains higher than historical norms.

到 2023 年，非住宅開工率和建設率預計將保持良好。更重要的是，我們的客戶告訴我們，儘管經濟存在不確定性，但需求仍然穩定。與最近的狂熱步伐相比，訂單活動的節奏更好，並且仍然高於歷史標準。

Our order backlog is well into the first half of 2023 with strong pricing dynamics, and we expect to see continued strong volume for fabrication in the fourth quarter and for 2023 in general.

我們的訂單積壓已進入 2023 年上半年，價格走勢強勁，我們預計第四季度和 2023 年的整體製造量將繼續保持強勁。

Aside from the significant advantage of pull-through volume for our sheet mills, New Millennium provides a perfect hedge to our steel operations. Although SDI mills saw steady utilization throughout the third quarter, lower domestic steel industry utilization in general reduced the demand for scrap in the quarter. First, scrap prices have declined month-over-month beginning in May through October. Prime dropping from some $735 a ton to more recently around about $380 per gross ton.

除了為我們的薄板廠帶來拉出量的顯著優勢外，新千年還為我們的鋼鐵業務提供了完美的對沖。儘管 SDI 鋼廠在整個第三季度的利用率穩定，但國內鋼鐵行業較低的利用率總體上降低了該季度的廢鋼需求。首先，從 5 月到 10 月，廢鋼價格環比下降。 Prime 從每噸 735 美元左右跌至最近每總噸約 380 美元左右。

Omni's earnings suffered as a result of this progression in market pricing and weaker industry demand. The Omni platform is continuing to work with our steel mill teams to expand our shred separation opportunities to provide even higher volumes of low residual scrap. The impact of our efforts, along with others in the industry, has amply demonstrated our view that innovation will solve any perceived fears of prime scrap shortage in the years ahead.

由於市場定價的這種進步和行業需求疲軟，Omni 的收益受到影響。 Omni 平台將繼續與我們的鋼廠團隊合作，以擴大我們的碎片分離機會，以提供更多數量的低殘留廢料。我們與業內其他人的努力所產生的影響充分證明了我們的觀點，即創新將解決未來幾年對主要廢品短缺的任何擔憂。

With additional producers coming to the market, pig iron availability is normalized and pricing has moderated significantly to a little over $500 per ton. We have sufficient pig iron sourced well into next year. Supply is not an issue for our flat rolled operations. And again, we're excited for the addition of ROCA to our OmniSource Mexico portfolio, which now will grow to some 2.5 million tons of ferrous and nonferrous annual capability.

隨著更多生產商進入市場，生鐵供應正常化，價格顯著放緩至每噸 500 美元多一點。我們有足夠的生鐵採購到明年。供應對我們的扁平材業務來說不是問題。再一次，我們對 ROCA 加入我們的 OmniSource 墨西哥產品組合感到興奮，該產品組合現在將增長到大約 250 萬噸黑色金屬和有色金屬的年產能。

It was another historically strong quarter for the steel platform. We had record shipments of 3.2 million tons and operating income of $658 million. Our third quarter production utilization rate was around 93%, which was incrementally lower than the second quarter that was 95%, yet significantly above the industry average of 78.

對於鋼鐵平台來說，這是另一個歷史上強勁的季度。我們的出貨量達到創紀錄的 320 萬噸，營業收入達到 6.58 億美元。我們第三季度的生產利用率約為 93%，低於第二季度的 95%，但明顯高於行業平均水平 78。

High utilization rates are clearly demonstrated through time. Value-added diversified product offerings, differentiated supply chain solutions all support -- and the support of internal pull-through volume all support that utilization -- higher utilization rate compared to our peers. And in turn, it supports our strong and growing through-cycle cash generation capability and best-in-class financial metrics.

隨著時間的推移，高利用率清楚地表明了這一點。增值多樣化的產品供應、差異化的供應鏈解決方案都支持——以及內部拉動量的支持都支持這種利用率——與同行相比，利用率更高。反過來，它支持我們強大且不斷增長的全週期現金生成能力和一流的財務指標。

Looking forward, customer order entry is good and backlogs are solid, and that's supported by our diversified portfolio of value-added products, which comprised now of around 70% of steel sales. We focus on value-creating supply chains to mitigate the impact of price volatility. And all this just maintains a higher through-cycle utilization rate.

展望未來，客戶訂單輸入情況良好，積壓情況良好，這得益於我們多元化的增值產品組合，目前約佔鋼材銷售額的 70%。我們專注於創造價值的供應鏈，以減輕價格波動的影響。而這一切只是保持了更高的全週期利用率。

Relative to the markets, we see automotive steady at current rates, and we expect that to improve off low 2022 production based on the extremely low dealer inventories and pent-up vehicle demand. The '22 build rate is going to be some 14.5 million units, and we would expect '23 to grow to 15.5 units or so, and 2024 to 16-plus million units.

相對於市場，我們認為汽車目前的速度保持穩定，我們預計基於極低的經銷商庫存和被壓抑的汽車需求，這將改善 2022 年的低產量。 '22 的建造率將達到 1450 萬台左右，我們預計 '23 年將增長到 15.5 台左右，到 2024 年將增長到 16 萬台以上。

Nonresidential construction remains solid as evidenced by fabrication backlog and long product steel volumes. Our long product steel backlogs are good and several of our divisions, Columbia City and Roanoke in particular, achieved strong volumes and record earnings in the third quarter, demonstrating our market depth. Infrastructure spending should also provide further meaningful support in the coming years.

製造積壓和長材鋼材量證明了非住宅建築仍然穩固。我們的長材鋼材積壓良好，我們的幾個部門，特別是哥倫比亞城和羅阿諾克，在第三季度實現了強勁的銷量和創紀錄的收益，證明了我們的市場深度。基礎設施支出還應在未來幾年提供進一步有意義的支持。

New residential construction has softened a little impacting HVAC and appliance and other housing-related products. Fortunately, our portfolio is biased to replacement, and we won't get a ton of a ton impact. Oil and gas activity is driving improved orders for OCTG and line pipe, and solar renewable expansion continues to grow.

新住宅建設對暖通空調和電器以及其他與住房相關的產品的影響略有減弱。幸運的是，我們的投資組合偏向於替換，我們不會受到很大的影響。石油和天然氣活動正在推動 OCTG 和管線管訂單的增加，太陽能可再生能源擴張繼續增長。

Turning to Sinton. Both the coating lines are running extremely well, and ramp-up continues on the hot side in the tandem cold mill. I believe the hot mill has certainly turned the corner becoming more consistently running at a 60%, 65% month-to-date with days exceeding well over 80%.

轉向辛頓。兩條塗裝線都運行得非常好，並且在冷連軋機的熱側繼續生產。我相信熱軋機肯定已經轉過彎，變得更加穩定地運行在 60%，本月至今的 65%，天數超過 80%。

Surface quality is excellent. Reported coil shape from processing customers is also excellent. And our hot strip mill design has allowed for thermal mechanical rolling, allowing higher strength grades with lower alloy content and associated costs. And we've already been approved and shipped some API grades, which is quite remarkable given the mill has only been up and running for what, 9 months. So the team has done a phenomenal job. And I think it certainly affirms our technical and process choices and it is indeed a next-generation mill.

表面質量非常好。加工客戶報告的線圈形狀也很好。我們的熱軋帶鋼軋機設計允許熱機械軋製，從而以較低的合金含量和相關成本獲得更高的強度等級。而且我們已經批准並運送了一些 API 等級，考慮到工廠僅啟動並運行了 9 個月，這非常了不起。因此，該團隊完成了非凡的工作。我認為它肯定肯定了我們的技術和工藝選擇，它確實是下一代工廠。

Our exceptional through-cycle operating and financial performance continues to support our cash allocation strategies and growth. The 4 value-add flat-rolled steel coating lines are going well and are targeted for the second half of 2023 for startup, 2 for Sinton and 2 for Heartland, and we're already seeing customer interest for that new volume.

我們卓越的全週期運營和財務業績繼續支持我們的現金分配戰略和增長。 4 條增值平板軋鋼塗裝線進展順利，計劃於 2023 年下半年啟動，2 條用於 Sinton，2 條用於 Heartland，我們已經看到客戶對這一新產量的興趣。

We're the largest domestic nonautomotive coater of flat-rolled steel with an annual coating capacity over 6 million tons. These 4 new lines will increase that capacity by an additional 1.1 million tons.

是國內最大的非車用扁鋼鍍膜企業，年鍍膜能力達600萬噸以上。這 4 條新生產線將使產能再增加 110 萬噸。

We have created unique supply chain solutions for our customers, which allow our downstream lines to remain always full with our highest margin products.

我們為客戶創建了獨特的供應鏈解決方案，使我們的下游生產線始終保持滿載我們最高利潤的產品。

Relative to the Roll Dynamics, the market response from both current and new customers across all market sectors has been absolutely incredible. And so to recap that project, it's a 650000-metric-ton-a-year aluminum flat rolled facility, which will be located in the Southeastern U.S. and we expect to announce that site location in the next few weeks.

相對於 Roll Dynamics，所有市場領域的現有客戶和新客戶的市場反應絕對令人難以置信。回顧一下這個項目，它是一個年產 650000 公噸的鋁扁軋設備，將位於美國東南部，我們預計將在未來幾週內宣布該廠址。

On-site melt and cast slab capacity will consist of 450,000 metric tons, and that will be supported by 2 satellite recycled aluminum slab casting centers, one in the Southwest U.S. and one in the South.

現場熔體和鑄坯產能將包括 450,000 公噸，這將得到 2 個衛星再生鋁板坯鑄造中心的支持，一個位於美國西南部，一個位於南部。

We'll have 2 cash lines, coating line and downstream processing and packaging lines. So we'll be able to furnish all products to the beverage -- food packaging arena, automotive and industrial. The mill is planned to start up mid-2025, the Mexico Slabs Center in 2024 and the Southwest Lab Center in the first quarter of '25.

我們將有兩條收銀線，塗裝線和下游加工包裝線。因此，我們將能夠為飲料提供所有產品——食品包裝領域、汽車和工業。該工廠計劃於 2025 年年中啟動，墨西哥板坯中心於 2024 年啟動，西南實驗室中心於 25 年第一季度啟動。

The financial impact will be around $2.2 billion CapEx over 4 years. It's going to be funded 100% with available cash and cash flow from operations with no additional debt needed. We expect to add about $650 million to $700 million of through-cycle annual EBITDA once it's up and running.

財務影響將在 4 年內達到約 22 億美元的資本支出。它將 100% 以可用現金和運營現金流提供資金，無需額外債務。一旦啟動並運行，我們預計將增加約 6.5 億至 7 億美元的全週期年度 EBITDA。

So in closing, we're excited and passioned by our future growth opportunities as they will continue the high returning growth momentum we have demonstrated over the last 15 years. Our teams are our foundation. I thank each of them for their passion and their dedication and their desire to excel.

所以最後，我們對未來的增長機會感到興奮和熱情，因為它們將繼續我們在過去 15 年中展示的高回報增長勢頭。我們的團隊是我們的基礎。我感謝他們每個人的熱情、奉獻精神和追求卓越的願望。

We are committed to the health and safety. And I remind those listening today that safety for yourselves and each other is our highest priority. Our culture and business model continues to positively differentiate our performance from others. We're competitively positioned and continue to focus on providing superior value for our company, our customers, team members and shareholders, and we look forward to creating new opportunities for everyone today and in the years ahead.

我們致力於健康和安全。我提醒今天聆聽的人們，你們自己和彼此的安全是我們的首要任務。我們的文化和商業模式繼續積極地將我們的表現與其他人區分開來。我們具有競爭優勢，並將繼續專注於為我們的公司、客戶、團隊成員和股東提供卓越的價值，我們期待在今天和未來為每個人創造新的機會。

So with that said, we would love to answer any questions you might have.

話雖如此，我們很樂意回答您可能遇到的任何問題。

(Operator Instructions) Our first question is coming from Emily Chieng with Goldman Sachs.

（操作員說明）我們的第一個問題來自高盛的 Emily Chieng。

My question is just around the fabrication business, and we've certainly seen realized pricing trend higher on a sequential basis. But perhaps could you share some color on where new contract awards are getting priced? And how should we be thinking about the sustainability of your margins in this segment in the near term and perhaps call it on a normalized basis?

我的問題只是圍繞製造業務，我們當然已經看到實現的定價趨勢連續上漲。但也許你能分享一些關於新合同獎勵定價的顏色嗎？我們應該如何考慮短期內您在這一領域的利潤率的可持續性，並可能在正常化的基礎上稱之為？

Certainly, Emily. Well, again, that business is incredibly robust. Our backlogs are still, from a volume standpoint and pricing standpoint, at historic highs. And we see that backlog well into '23, probably about 8 months from there, and it remains solid. Spreads are at very high numbers, as you can see from our most recent results. And we see that volume being sustained, our Q3 volume into Q4. And our earnings should certainly parallel that as relative to the third quarter, I do believe.

當然，艾米麗。好吧，再一次，這項業務非常強大。從數量和定價的角度來看，我們的積壓訂單仍處於歷史高位。而且我們看到積壓的工作一直持續到 23 年，大概從那時起大約 8 個月，而且它仍然很穩定。從我們最近的結果中可以看出，點差非常高。而且我們看到銷量保持不變，我們第三季度的銷量一直持續到第四季度。我相信，相對於第三季度，我們的收益當然應該與第三季度相當。

So very, very strong. As you may recognize, that industry over the years is sort of rationalized and consolidated and no longer fragmented as it once was. And we see higher pricing and higher spreads being sustained through the cycle going forward.

非常非常強大。正如您可能認識到的那樣，該行業多年來已經合理化和整合，不再像以前那樣分散。我們看到更高的定價和更高的價差在未來的周期中持續存在。

Our next question is coming from Carlos De Alba with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Carlos De Alba。

So the question is based on the comments for end markets, it seems that long products should be doing better than the flat -- the flat end markets and the flat end products. But in the reported volumes, we saw your long steel volumes falling a little bit quarter-on-quarter, while flat improved. So I just wonder if you can give us a little bit of -- how you see that evolving in the fourth quarter? Do you think that this is going to probably reverse based on the end market situation and how those are evolving?

所以這個問題是基於對終端市場的評論，似乎長材應該比平板做得更好——平板終端市場和平板終端產品。但在報告的數量中，我們看到你們的長材銷量環比略有下降，但持平有所改善。所以我只是想知道你是否可以給我們一點 - 你如何看待第四季度的發展？您是否認為這可能會根據最終市場情況以及這些情況如何發展而逆轉？

And also you mentioned in your press release that seasonally you see lower volumes in the fourth quarter. However, your seasonality in the last couple of years has been quite different than what we saw in, say, 2015 to 2019 prior to the pandemic. So if you could share some color as to how you see the seasonality playing out this time around will be also great?

您還在新聞稿中提到，季節性地，第四季度的銷量會有所下降。但是，您在過去幾年中的季節性與我們在大流行之前的 2015 年至 2019 年所看到的情況大不相同。所以，如果你能分享一些關於你如何看待這次季節性表現的顏色也會很棒嗎？

Carlos, thanks for joining us on the call. So from the specifics of flat increasing while, I would say, long products was very strong because long products had record shipments in the second quarter, so still very strong. But you have to remember that Sinton is starting up in this time frame. So the addition of Sinton ramping up helps offset some of the seasonality that you might see in our flat roll shipments even as we head into the fourth quarter.

卡洛斯，感謝您加入我們的電話會議。所以從持平增長的具體情況來看，我想說的是，長材非常強勁，因為長材在第二季度的出貨量創歷史新高，所以仍然非常強勁。但你必須記住，Sinton 是在這個時間範圍內開始的。因此，即使我們進入第四季度，Sinton 的增加也有助於抵消您在平捲髮貨中可能看到的一些季節性因素。

That being said, we're expecting still to see really resilient volume from the steel base, both in long and flat as we head into the -- you're correct, is more of a seasonal time frame, but we have some offsetting parameters as we look at both Sinton. And frankly, as we look at our coated products, specifically Galvalume had a really strong third quarter.

話雖如此，我們仍然希望看到鋼鐵基礎的真正彈性成交量，無論是多頭還是持平，因為我們進入 - 你是對的，這更像是一個季節性的時間框架，但我們有一些抵消參數我們看看辛頓。坦率地說，當我們查看我們的塗層產品時，特別是 Galvalume 的第三季度表現非常強勁。

Our next question is coming from Timna Tanners with Wolfe Research.

我們的下一個問題來自於 Wolfe Research 的 Timna Tanners。

I wanted to just ask you about you utilization continuing to be higher than peers. And it's a pretty big contrast as you point out, you're ramping up Sinton. And meanwhile, U.S. Steel has cut production, saying there's not enough demand. And your utilization is a pretty stark contrast. I'm just -- and Nucor said that they're being disciplined in holding off tons because of weaker demand.

我只想問你關於你的利用率繼續高於同齡人的問題。正如你所指出的，這是一個相當大的對比，你正在加速辛頓。與此同時，美國鋼鐵公司已經減產，稱需求不足。和你的利用率形成了鮮明的對比。我只是 - 紐柯說，由於需求疲軟，他們在推遲噸數方面受到紀律處分。

So I'm just wondering you can explain what's different about what you're seeing? And if you could -- while you do that, if you could talk a little bit about the opportunities that you've mentioned in the past for exporting to Mexico and the West Coast from the Sinton operations.

所以我只是想知道你能解釋一下你所看到的有什麼不同嗎？如果可以的話 - 在你這樣做的時候，如果你能談談你過去提到的從 Sinton 業務出口到墨西哥和西海岸的機會。

Well, Timna, I think as we told in the past, I do believe our business model is definitely differentiated from our peers for sure. And the high utilization rate is triggered, I think, probably in 3 spots. One, is we have a much more diversified value-add product portfolio mix than probably any steel producer in the States today. That allows us optionality across all market sectors and all market products, and that certainly has a significant impact.

好吧，蒂姆納，我認為正如我們過去所說，我確實相信我們的商業模式肯定與我們的同行有所不同。我認為，可能在 3 個位置觸發了高利用率。一是我們擁有比當今美國任何一家鋼鐵生產商都更加多樣化的增值產品組合。這使我們能夠在所有市場部門和所有市場產品中擁有選擇權，這肯定會產生重大影響。

I do believe we have cultivated and developed over time some pretty unique supply chain sort of partnerships with many of our customers, and that gives us resilience through the cycle. And then thirdly, the pull-through volume of our sort of downstream conversion facilities and New Millennium is quite considerable.

我確實相信，隨著時間的推移，我們已經與我們的許多客戶建立並發展了一些非常獨特的供應鏈類型的合作夥伴關係，這讓我們在整個週期中具有彈性。第三，我們這種下游轉換設施和新千年的拉動量相當可觀。

So if you look at this year, New Millennium, will be consuming about somewhere close to probably 800,000 tons of substrate. And much of that is procured through our own mills. So there's a massive volume sort of pull through there. And then our Heartland facility, which is roughly 800-million-ton-a-year converter takes material and also The Techs, which has 850,000, 900,000 tons of consumption.

因此，如果您看一下今年，新千年，將消耗大約 800,000 噸基質。其中大部分是通過我們自己的工廠採購的。所以那裡有大量的拉力。然後我們的 Heartland 工廠（每年大約 8 億噸轉爐）需要材料，以及消耗量為 850,000、900,000 噸的 Techs 工廠。

So that pull-through volume onto itself. When there's a need, we bring a lot more of that in-house to maintain that utilization. And as you point out, through the cycle, we've typically at 10%, 15% higher utilization than the industry in general. And I can't overemphasize the impact that has on our through-cycle cash generation capability. It certainly supports that, and in turn, supports all the growth and the cash allocation strategies that we -- the balanced cash allocation strategies that we continue to execute.

因此，拉通卷本身。當有需要時，我們會在內部帶來更多的東西來維持這種利用率。正如您所指出的，在整個週期中，我們的利用率通常比整個行業高出 10% 到 15%。我不能過分強調它對我們整個週期現金產生能力的影響。它當然支持這一點，反過來，支持我們所有的增長和現金分配策略——我們繼續執行的平衡現金分配策略。

Okay. Great. Would you mind on the other part of the question about the opportunities that you'd mentioned on Sinton as part of that ability to ramp -- produce at higher levels as well?

好的。偉大的。您是否介意問題的另一部分，關於您在 Sinton 上提到的機會，作為這種能力的一部分——也可以在更高的水平上生產？

Yes. Sorry. I mean, a little tough time hearing Timna. The Sinton mill, obviously, ramping up focused on furnishing material through the 2 coating lines, the galvanizing line, the paint line and just ramping up and commissioning all the different product capabilities we have there. We believe Mexico will long term despite the additional hot band capability that's coming downstream, will continue to have a mismatch in the cold-rolled coated arena. And so it's our intent to be transferring or selling into the Mexican market, HVAC appliance and automotive there. And we have yet to develop a meaningful sort of shipping volume to the West Coast, but I'm confident that, that will occur over time as that ramp continues.

是的。對不起。我的意思是，聽到蒂姆納的聲音有點困難。顯然，Sinton 工廠通過兩條塗層線、鍍鋅線、油漆線來提升裝飾材料的重點，並且只是提升和調試我們在那裡擁有的所有不同的產品能力。我們認為，儘管下游將增加額外的熱軋帶能力，墨西哥將長期在冷軋塗層領域繼續存在不匹配。因此，我們打算轉移或銷售到墨西哥市場、HVAC 電器和汽車。我們還沒有開發出一種有意義的到西海岸的運輸量，但我相信，隨著這種增長的繼續，這將隨著時間的推移而發生。

Our next question is coming from Cleveland Rueckert with UBS Securities.

我們的下一個問題來自瑞銀證券的克利夫蘭魯克特。

I appreciate taking the question. I'll stick to one, just to start. But Mark, I wanted to build on your comment about raw materials and scrap availability. I'm just curious, as we think about investment opportunities, I get that you're shifting investment into aluminum and that's kind of the priority right now. But -- is there any opportunity to invest in some of the raw materials businesses that you already own? I think on these calls before, you've talked about increasing usage of different scrap grades. I'm just wondering if that's more of an R&D exercise on your part on the steel operations or if there's some infrastructure that you're thinking could add some efficiency there.

我很感激提出這個問題。我會堅持一個，只是開始。但是馬克，我想在你對原材料和廢料可用性的評論的基礎上再接再厲。我只是好奇，當我們考慮投資機會時，我知道您正在將投資轉向鋁，這是目前的優先事項。但是——是否有機會投資於您已經擁有的一些原材料業務？我認為在之前的這些電話中，您談到了增加不同廢品等級的使用。我只是想知道這是否更多地是您對鋼鐵業務的研發活動，或者您認為是否有一些基礎設施可以在那裡增加一些效率。

Well, I think the -- given our investment in Mexico for Zimmer and with ROCA where we thought there was a very unique opportunity. That arena is prime scrap rich and it would allow us to support Columbus and Sinton. Beyond that, we're not interested in any sort of large-scale recycled sort of acquisition-type investment. The investments will be centered though on streamlining and improving our existing operations, lowering our cost structure throughout that organization. And more specifically, investing in sort of segregation, separating type technologies to optimize the streams -- the waste streams that we have. So (inaudible) everything to divide that up into more value-added 5,000, 6,000 series type raw materials for our aluminum mill.

好吧，我認為 - 考慮到我們在墨西哥為 Zimmer 和 ROCA 進行的投資，我們認為那裡有一個非常獨特的機會。那個競技場是主要廢料豐富的，它將使我們能夠支持哥倫布和辛頓。除此之外，我們對任何類型的大規模回收型收購類型的投資都不感興趣。這些投資將集中在精簡和改進我們現有的業務上，降低我們整個組織的成本結構。更具體地說，投資於某種分離、分離類型的技術以優化流——我們擁有的廢物流。因此，（聽不清）一切都將其劃分為我們鋁廠的更具附加值的 5,000、6,000 系列類型的原材料。

And also investing in technologies and expanding our current technologies because in all honesty, on the ferrous separation, what we call shred 1, the improved shredded material, we have the technologies available to us. It's just a matter of expanding that across our Omni base.

並且還投資於技術並擴展我們現有的技術，因為老實說，在鐵分離方面，我們稱之為 shred 1，改進的粉碎材料，我們擁有可用的技術。這只是在我們的 Omni 基礎上擴展它的問題。

And those technologies, in all honestly, is not a massive amount of CapEx spend. It can be underemphasized though, how that's impacting the scrap flows, and it's not just us. Some of our peers are doing the same thing, producing a sort of a very low residual shred. And as I've said in the past, if you look at a shredded car today, if you just take a piece of the rusty metal itself, that's likely been produced through an integrated mill and is a very, very low residual.

老實說，這些技術並不是大量的資本支出。不過，這可能會被低估，它是如何影響廢料流的，而且不僅僅是我們。我們的一些同行也在做同樣的事情，產生一種非常低的殘留碎片。正如我過去所說，如果你今天看一輛碎車，如果你只拿一塊生鏽的金屬本身，那很可能是通過綜合工廠生產的，殘留物非常、非常低。

So by separating out the little bit of copper and nickel, you can get a prime scrap from that obsolete flow. And I think we're seeing it, you can see it in the marketplace today where prime is actually selling under the shred price today. And it is amplifying the fact that their perceived concerns as additional capacity comes online over the next few years. But I think we've demonstrated clearly, the industry has demonstrated clearly what I've always said, and that's innovation will trump the challenge each and every day.

因此，通過分離出一點點銅和鎳，您可以從過時的流程中獲得優質廢料。而且我認為我們正在看到它，你可以在今天的市場上看到它，現在黃金實際上以低於切碎的價格出售。並且進一步放大了這樣一個事實，即他們對未來幾年新增容量上線的擔憂。但我認為我們已經清楚地展示了，這個行業已經清楚地展示了我一直所說的，那就是創新將戰勝每天的挑戰。

Our next question is coming from Alex Hacking with Citi.

我們的下一個問題來自花旗銀行的 Alex Hacking。

Yes. So on Sinton, Mark, I think you mentioned that it had turned the corner. How close are you there to operating at consistent 80% rate? What are the remaining challenges? And then what needs to happen to get it up to 90%, 95% or whatever you would be targeting longer term? And is that the kind of rate you would be expecting 90%, 95% exit rate in 2023? So you stopped below 80% and then you kind of build up through the year? Or it would be more of a consistent rate through the year?

是的。所以在辛頓，馬克，我想你提到它已經轉過彎了。您離以 80% 的穩定率運營還有多遠？剩下的挑戰是什麼？然後需要發生什麼才能使其達到 90%、95% 或任何您的長期目標？ 2023 年退出率是 90%、95% 嗎？所以你停止在 80% 以下，然後你全年都在積累？還是全年保持一致？

Well, I would describe the issues at Sinton today as just typical start-up issues. A little amplified by the supply chain constraints out there. In the old days or the other mills we started up, you need a spare part, and it's like literally on the shelf in the local city. We were seeing a little more time to react to certain issues.

好吧，我將今天在 Sinton 的問題描述為典型的啟動問題。受到供應鏈限制的一點放大。在過去或我們創辦的其他工廠，您需要備件，這就像在當地城市的貨架上一樣。我們看到了更多時間來對某些問題做出反應。

That said, it is purely just making sure that we are operating each piece of equipment all the way from the electric arc furnaces through the (inaudible) just operating each and every minute of each and every day. As I said earlier, the equipment is proven to be able to produce everything we intended. It's produced out to 84 wide. We've gone down to [0.43 or 0.44] and light gauge. We produced 1-inch plate.

也就是說，這純粹是確保我們從電弧爐一直到（聽不清）每天的每一分鐘都在運行每台設備。正如我之前所說，該設備已被證明能夠生產出我們想要的一切。它的寬度為 84。我們已經下降到 [0.43 或 0.44] 和輕量級。我們生產 1 英寸的板。

As I said earlier, we've already been certified on some of the perhaps slightly easier API grades, but the other grades will come with time. There's no issue or challenge to get there. It's just a matter of time.

正如我之前所說，我們已經通過了一些可能稍微簡單的 API 等級的認證，但其他等級將隨著時間的推移而出現。到達那裡沒有問題或挑戰。這只是時間問題。

So from a capability standpoint, it's definitely there. We've had shifts. We've had days close to 85%, 86% of production rate, which again, given the relative short time that, that team has been ramping up is absolutely incredible. I think it took us 3 years in Butler to get a 4,000 ton shift, and we've had many of those already. So I'm not concerned. It's just a matter of time. I would expect that '23, we should get around 80% of our 3 million tons of shipping capability.

所以從能力的角度來看，它肯定是存在的。我們有過輪班。我們已經有接近 85% 和 86% 的生產率的日子，同樣，鑑於相對較短的時間，該團隊一直在加速發展，這絕對令人難以置信。我認為我們在巴特勒花了 3 年的時間才完成 4,000 噸的輪班，我們已經有很多這樣的班次了。所以我不擔心。這只是時間問題。我預計 23 年，我們應該獲得 300 萬噸運輸能力的 80% 左右。

But Alex, you're correct. That's for the entirety of the year. So there will be a progression of ramp so that by the time we're exiting 2023, we would expect to be operating at or near that capacity rate -- that full capacity rate.

但是亞歷克斯，你是對的。這是一整年的時間。因此，將會有一個斜坡的進展，因此到我們退出 2023 年時，我們預計將以或接近該產能率——即滿負荷率運行。

Okay. And then just to clarify on the earlier comments, again, on Sinton. Would you be expecting to ship more flat rolled in the 4Q, considering the ramp-up of Sinton or the seasonality will offset that?

好的。然後只是為了澄清之前關於 Sinton 的評論。考慮到 Sinton 的增長或季節性將抵消這一點，您是否期望在第四季度出貨更多的扁平材？

Alex, I think you were asking about the full complement of our flat roll operations? And we are expecting to have higher shipments from Sinton itself, but I'll leave you to determine what seasonality does to the rest of the group.

亞歷克斯，我想你是在問我們平輥操作的全部補充嗎？我們預計 Sinton 本身的出貨量會更高，但我會讓你確定季節性對集團其他成員的影響。

Our next question is coming from Curtis Woodworth with Credit Suisse.

我們的下一個問題來自瑞士信貸的 Curtis Woodworth。

So I just wanted to talk a little bit more about fabrication. Can you kind of talk to the diversity within your backlog and maybe how bidding activity has progressed maybe in the last 90 days? I think there is some concern in the market that the data center and warehouse build-out has really driven the bulk of this growth rate, and that could potentially fall sharply. And it's clear if you have like a lot of big chunky projects that once those burn off, then you could be more at risk.

所以我只是想多談談製造。您能否談談您的積壓工作中的多樣性，以及過去 90 天內競標活動的進展情況？我認為市場上存在一些擔憂，即數據中心和倉庫的擴建確實推動了這一增長率的大部分，並且可能會急劇下降。很明顯，如果你有很多大型項目，一旦這些項目被燒毀，那麼你可能會面臨更大的風險。

And then within that, I know you spoke about pricing being fairly favorable. And I think you talked about how pricing would be going up progressively, I believe, into the second quarter, but can you just confirm that?

然後在那之中，我知道你談到定價相當優惠。而且我認為您談到了價格將如何逐步上漲，我相信，到第二季度，但您能確認一下嗎？

Curt, thanks for the question. I'll let Mark address the diversity within the backlog of the fabrication business. It has changed just slightly. And I think it's become more favorable as these things are changing. As it relates to the backlog and the pricing, what Mark was suggesting is that we still have incredibly favorable pricing heading with the backlog that goes through much of the first half of 2023. It's not likely to be at that same peak level of $5,000-plus, but still very favorable. And at the same time, we're going to and expect to have lower steel input costs as we move through at least the fourth quarter.

柯特，謝謝你的問題。我會讓馬克解決製造業務積壓中的多樣性問題。它只是略有變化。而且我認為隨著這些事情的變化，它變得更加有利。由於它與積壓和定價有關，馬克的建議是，在 2023 年上半年的大部分時間裡，我們仍然有非常有利的定價標題。它不太可能達到 5,000 美元的相同峰值水平-加，但仍然非常有利。同時，隨著我們至少在第四季度進行，我們將要並期望降低鋼鐵投入成本。

And so as you can imagine, that's why the power in the business model of having fabrication be a real natural hedge to lower steel prices, is very favorable to us. And that's what you're seeing today, and we would expect to see in the coming quarters as well.

正如你可以想像的那樣，這就是為什麼讓製造成為降低鋼鐵價格的真正自然對沖的商業模式的力量對我們非常有利。這就是你今天所看到的，我們預計在接下來的幾個季度也會看到。

Mark, do you want to describe the diversity in the order backlog?

馬克，你想描述一下訂單積壓的多樣性嗎？

Yes. I think it is transitioning a little bit. Early on, it was very, very sort of distribution warehouse focused with cloud computing and things are following along. Cloud computing, construction tends to be -- continue to be strong and grow. Warehouse may be kind of flat to stable. And we're also seeing sort of more infrastructure -- hospitals, school type construction activity.

是的。我認為它正在發生一些轉變。早期，它是一種非常非常專注於雲計算的分發倉庫，事情也在隨之而來。雲計算，建設往往是——繼續強大和成長。倉庫可能有點平坦到穩定。而且我們還看到了更多的基礎設施——醫院、學校類型的建設活動。

So we see it strong. I mentioned earlier, it's not at the frenetic pace that it was perhaps 6 months ago or 8 months ago. It's normalized to still very high relative to historic norms. And if you think about it, given the interest rate sort of environment and the little economic cloud that we have, it's not unexpected that people are wondering about projects, 7, 8, 9, 10 months out, and they're just waiting a little. But in general, we see that just the nonresidential construction in general remaining very, very, very robust through certainly the first half of next year into the latter half.

所以我們認為它很強大。我之前提到過，它不像 6 個月前或 8 個月前那樣瘋狂。相對於歷史規範，它已標準化為仍然非常高。如果你想一想，考慮到利率環境和我們所擁有的小經濟雲，人們對 7、8、9、10 個月後的項目感到好奇，他們只是在等待小的。但總的來說，我們看到只有非住宅建築總體上保持非常、非常、非常強勁，肯定會持續到明年上半年到下半年。

And just to address your point on the backlog, if there's any risk that we want to point out, there's really not. It's a well-diversified backlog. There's not individual projects that are too large of a size. And something to just keep in mind as well as once something enters the backlog for the fabrication business, the projects have already been engineered. They generally have already been financed. There's a lot of certainty in that backlog. And if you look on average of the projects that we do, the cost of steel joists and steel deck -- or steel deck as a part of the entire project itself is only between 10% and 15%. So it's a small piece of that project in itself, which also reduces the risk.

只是為了解決您對積壓問題的看法，如果我們想指出任何風險，實際上沒有。這是一個多元化的積壓工作。沒有太大的單個項目。需要記住的一點是，一旦有一些東西進入製造業務的積壓工作，這些項目就已經設計好了。他們通常已經獲得資金。積壓的工作有很多確定性。如果你平均看一下我們所做的項目，鋼托樑和鋼甲板的成本——或者作為整個項目本身一部分的鋼甲板的成本只有 10% 到 15% 之間。因此，它本身只是該項目的一小部分，這也降低了風險。

Okay. Very helpful. And then just as a follow-up. I think there have been some maybe incremental concerns on the aluminum flat rolled market just given some of the announcements by Ball and others on the beverage can sheet side. So can you just give an update on maybe how you're progressing commercially with that project and what initial discussions have been like since you announced the project?

好的。非常有幫助。然後只是作為後續行動。鑑於 Ball 和其他人在飲料罐片方面的一些公告，我認為鋁扁軋市場可能存在一些增量擔憂。那麼，您能否提供有關該項目在商業上的進展情況以及自您宣布該項目以來的初步討論情況的最新信息？

Well, relative to aluminum, we are awash with interest, an incredible interest to be honest. We have been focused of late locating the facilities. Glenn and his team have just -- in the last week or two, completed the purchase of all the major sort of components. Certainly, all the long lead time issues, equipment packages. So progress is being made dramatically.

好吧，相對於鋁，我們充滿了興趣，老實說，這是一種令人難以置信的興趣。我們一直專注於後期定位設施。 Glenn 和他的團隊剛剛在過去一兩週內完成了所有主要組件的採購。當然，所有的長交貨期問題，設備包。因此，正在取得顯著進展。

We're now starting to focus on the commercial side. We've had initial conversations with all but one of the major beverage outfits, can makers. Incredible interest in all honesty there. And also in automotive, there are several folks that have approached us to partner with us going forward. So from a standpoint of contracted volumes, pricing, those sorts of things, that's too early yet.

我們現在開始關注商業方面。除了一家主要的飲料公司，我們已經與罐頭製造商進行了初步對話。對那裡的所有誠實都產生了令人難以置信的興趣。在汽車領域，也有一些人與我們接洽，希望與我們合作。因此，從合同數量、定價等方面來看，現在還為時過早。

(Operator Instructions) Our next question is coming from Phil Gibbs with KeyBanc.

（操作員說明）我們的下一個問題來自 KeyBanc 的 Phil Gibbs。

Sorry, I was on mute. Can you hear me now?

對不起，我靜音了。你能聽到我嗎？

We can.

我們可以。

Specifically, you talked about in the script that you were at a 60% to 65% utilization on average for the month of October so far. Is that what we should expect for the fourth quarter, which would get us near 500,000 tons for that asset? Or do we expect something a little bit more than that as you ramp?

具體來說，您在腳本中談到到目前為止 10 月份的平均利用率為 60% 到 65%。這是我們對第四季度的預期嗎，這將使我們獲得接近 50 萬噸的資產？或者我們是否期望在你斜坡上升時會有更多的東西？

I would not expect 65% for the whole quarter. No. But I -- Phil, it's tough to give you a number. If things continue to proceed as they have, month to date, then you're going to see a very good number for the quarter. But I can't foretell the future. All I can say is the operation has reached a much more stable, consistent level of operation. The big shifts or the big days, there are more of them. But more importantly, we're not seeing the 0 shifts as we once were in the summer and as you see in any startup. So the consistency of operation is very, very much improved and gives me a lot of confidence going forward.

我不希望整個季度達到 65%。不，但是我——菲爾，很難給你一個數字。如果事情繼續按月至今的方式進行，那麼您將看到本季度的一個非常好的數字。但我無法預知未來。我只能說，操作已經達到了更加穩定、一致的操作水平。大轉變或大日子，還有更多。但更重要的是，我們沒有看到像夏天那樣的 0 轉變，也沒有像你在任何初創公司中看到的那樣。所以操作的一致性得到了非常非常大的改善，給了我很大的信心。

Should we expect, given higher volume incrementally and some of that stabilization and just the overall operations that you will get to EBITDA positive in the fourth quarter and sort of out of the start-up phase that you've been in?

我們是否應該期望，考慮到更高的數量增量和一些穩定，以及您將在第四季度實現 EBITDA 正的整體運營，並且有點超出您所處於的啟動階段？

Yes, Phil. We talked about it on the second quarter conference call that our expectations were sitting at that point in time was that we would reach EBITDA positive sometime in the fourth quarter. That's likely pushed out sometime in the first quarter rather than the fourth quarter. But definitely, as Mark mentioned, we're seeing a lot of positive changes and there's been some key successes that the teams had just recently in October that we would expect to result in some really good changes heading forward. But I would suggest it's probably closer to in the first quarter versus the fourth.

是的，菲爾。我們在第二季度電話會議上談到了這一點，我們當時的預期是我們將在第四季度的某個時候達到 EBITDA 正數。這可能會在第一季度而不是第四季度的某個時候推出。但毫無疑問，正如 Mark 所提到的，我們看到了很多積極的變化，並且團隊最近在 10 月份取得了一些關鍵的成功，我們預計會在未來帶來一些非常好的變化。但我建議它可能更接近第一季度而不是第四季度。

Okay. And then as just a follow-up, if you could take a shot in talking about 2023 CapEx if you have a general idea. And then just also thoughts on net working capital in Q4?

好的。然後作為後續行動，如果您有一個大致的想法，是否可以嘗試談論 2023 年的資本支出。然後只是對第四季度淨營運資本的想法？

So we're in the middle of our detailed planning phase related to capital. I'll give some directionality, but we would have more clear and defined expectations for you as we meet in January for the fourth quarter conference call. But right now, the aluminum investments still look like we'll be spending about $750 million in 2023 as it relates to both the recycled slab centers and the rolling mill itself.

因此，我們正處於與資本相關的詳細規劃階段。我會給出一些方向性，但是當我們在一月份舉行第四季度電話會議時，我們會對你有更明確和明確的期望。但就目前而言，鋁投資看起來仍然像我們將在 2023 年花費約 7.5 億美元，因為它與回收板坯中心和軋機本身有關。

We also have the completion of the 4 flat roll lines, which is likely to be around $200 million in 2023. And then we have the biocarbon facility. So I would say just those growth projects alone will probably get us to around $1 billion for capital spending in 2023. And then as we think about the additional projects that we're evaluating right now, I would suggest that it shouldn't be any greater than $1.2 billion to $1.3 billion, but we'll have more clarity as we talk to you in January.

我們還完成了 4 條平軋生產線，到 2023 年可能會耗資 2 億美元左右。然後我們有生物碳設施。所以我想說，僅這些增長項目就可能讓我們在 2023 年的資本支出達到 10 億美元左右。然後，當我們考慮我們現在正在評估的其他項目時，我建議它不應該是任何超過 12 億至 13 億美元，但我們會在 1 月份與您交談時更加明確。

I'm sorry. Thanks, David. And as it relates to the working capital, as we've had -- as we expect to see some seasonality in volume for customers to reorient their inventories by the end of the year, and as we've seen pricing declines in both scrap and in steel, I would expect to see another pretty significant funding from working capital. So a contribution from working capital in the fourth quarter.

對不起。謝謝，大衛。由於它與營運資金有關，正如我們所擁有的那樣——因為我們預計客戶在年底前會重新調整庫存，而且我們已經看到廢鋼和廢鋼的價格都有所下降。在鋼鐵行業，我預計會從營運資金中看到另一筆相當可觀的資金。因此，第四季度營運資金的貢獻。

Our next question is coming from Tristan Gresser with BNB Paribas.

我們的下一個問題來自 BNB Paribas 的 Tristan Gresser。

First one is on the cost of ferrous scrap. This came much higher than what we forecasted. And I guess this is due to the purchase of more expensive metallics in H1 that some of your peers also flagged. Are you able to quantify this extra negative impact you had in the quarter? And do you believe this will remain a headwind into Q4?

第一個是黑色金屬廢料的成本。這比我們預測的要高得多。我猜這是由於在上半年購買了更昂貴的金屬，你的一些同行也注意到了這一點。您能否量化您在本季度產生的額外負面影響？您是否認為這將繼續成為第四季度的逆風？

But somewhat the question related to ferrous scrap pricing and our average price was higher than expected from their models. And I would tell you, there's a significant piece of that, that has to do with higher pig iron prices. So during the first quarter with the Russian-Ukraine circumstance, we, as did others, went out and purchased more pig iron to have certainty around supply. It was at a higher price than we're currently seeing today, which I think Mark mentioned was around $500 per ton. And so the flat-rolled steel mills, specifically Sinton, Columbus and Butler are still working through that higher cost pig iron at this time.

但有些問題與廢鐵定價有關，我們的平均價格高於他們模型的預期。我會告訴你，其中很大一部分與生鐵價格上漲有關。因此，在俄羅斯和烏克蘭的第一季度，我們和其他人一樣，出去購買了更多的生鐵以確保供應。它的價格比我們今天看到的要高，我認為馬克提到的價格約為每噸 500 美元。因此，平板軋鋼廠，特別是 Sinton、Columbus 和 Butler，目前仍在努力解決成本較高的生鐵問題。

Mark, do you wish to add any more commentary?

馬克，你想添加更多評論嗎？

The pig iron, and we also ended the quarter with some scrap inventory that obviously flows through into the higher-priced scrap inventory that flowed into the third quarter, too. Those inventories are well in control now, and we're back to kind of a 4-week, maybe 5-week inventory level. So going forward, I think that will normalize. But the pig iron price in all honesty, is going to continue into the fourth quarter, for sure.

生鐵，我們也在本季度結束時有一些廢鋼庫存，這些廢鋼庫存顯然流入了流入第三季度的高價廢鋼庫存。這些庫存現在得到了很好的控制，我們回到了 4 週甚至 5 週的庫存水平。所以展望未來，我認為這將正常化。但老實說，生鐵價格肯定會持續到第四季度。

Okay. That's very helpful. And maybe just a quick follow-up on the Buy Clean initiative that has been put in motion by the U.S. government. What kind of impact are you expecting from that new policy, the potential boost to demand? And are you seeing already some impact on that initiative?

好的。這很有幫助。也許只是對美國政府發起的“購買清潔”計劃的快速跟進。您期望這項新政策會產生什麼樣的影響，對需求的潛在推動作用？您是否已經看到對該倡議的一些影響？

From a Buy America policy, I'm sorry, it was hard to hear you at the very end. Is it related to the Buy America policy? That is still so early on. We're not seeing a considerable amount of traction from it at this point. Conversations with customers on the commercial side though, we believe that it won't just be Buy America, but if you look at, again, our steel operations, specifically as it relates to even our current low carbon footprint for our carbon steels and our long product steels, we believe will be the beneficiary continuing going forward of that, I'm going to call it green steel for lack of a more simple terminology at this point in time.

很抱歉，從購買美國產品的政策中，最後很難聽到你的聲音。是否與購買美國商品政策有關？那還為時尚早。在這一點上，我們還沒有看到相當大的吸引力。儘管在商業方面與客戶的對話，我們相信這不僅僅是購買美國，而是如果您再次查看我們的鋼鐵業務，特別是因為它甚至與我們目前的碳鋼和我們的低碳足蹟有關長材鋼材，我們相信將繼續受益，我將稱其為綠色鋼材，因為目前缺乏更簡單的術語。

And we believe that the Buy America will also have a positive influence. As well as the Jobs Act and the infrastructure program, which you should really start seeing traction from in the next 9 to 12 months. That should support steel consumption in the U.S. specifically in our estimation. Mark, do you have anything to add?

我們相信“購買美國”也將產生積極影響。以及《就業法案》和基礎設施計劃，你應該在接下來的 9 到 12 個月內真正開始看到牽引力。這應該會支持美國的鋼鐵消費，特別是在我們的估計中。馬克，你有什麼要補充的嗎？

No.

不。

Our next question is coming from John Tumazos with John Tumazos Independent Research.

我們的下一個問題來自 John Tumazos 和 John Tumazos Independent Research。

Do you expect a significant drop in scrap flows with the plunging scrap steel prices?

隨著廢鋼價格暴跌，您是否預計廢鋼流量會大幅下降？

John, they've eased and ebbed a little. I would say that, that reduction in flow is probably going to sort of mitigate any further substantial decline in scrap pricing.

約翰，他們已經緩和了一點。我想說的是，流量的減少可能會緩解廢鋼價格的進一步大幅下降。

Mark, I just want to recall that we met in '83 at Darlington when you were working the (inaudible) for Nucor when you were a fresh student?

馬克，我只想回想一下，我們是在 83 年在達靈頓認識的，當時你還是一名新生，當時你正在為 Nucor 工作（聽不清）？

I remember.

我記得。

Your aluminum competitors have 30- to 50-year old house with twin-belt casters that you intimately understand, often unionized. And maybe you're a little bit too humble or modest and don't want to say that you think you can build a new plant with an SMS design that's more efficient. People don't understand the opportunity you have in aluminum and congratulations. It looks great.

您的鋁製競爭對手擁有 30 到 50 年曆史的雙帶腳輪房屋，您非常了解這些腳輪，通常是工會組織。也許你有點過于謙虛或謙虛，不想說你認為你可以用更高效的 SMS 設計建造一個新工廠。人們不理解你在鋁和祝賀方面的機會。看起來不錯。

Thank you, John. Thanks for the memory. But I do believe, to your point, the new aluminum mill -- and in all honesty, I don't look at it as an aluminum mill. It's a new horizon. It's the aluminum business for us. And it's not unlike 27 years ago, when we put SDI together and we penetrated and have been somewhat successful growing within the steel industry.

謝謝你，約翰。謝謝你的記憶。但就你的觀點而言，我確實相信新的鋁廠——老實說，我不認為它是鋁廠。這是一個新的視野。這是我們的鋁業。這與 27 年前沒有什麼不同，當時我們將 SDI 整合在一起，我們在鋼鐵行業滲透並取得了一定程度的成功。

The same sort of drivers exist today in aluminum as it did back in steel. You've got an aged industry, has very, very high legacy costs for sure, inefficiencies. There hasn't been a new mill built for some 45 years. And as you know, Glenn and his team is incredibly smart and talented getting (technical difficulty) and efficiently. It's exciting. And it's exciting for the young team that we have to see that being the foundation of our growth for the next 25 years.

今天在鋁中存在與在鋼中相同的驅動因素。你有一個老化的行業，肯定有非常非常高的遺留成本，效率低下。大約 45 年沒有建造新的工廠。如您所知，Glenn 和他的團隊非常聰明、才華橫溢（技術難度）和高效。是興奮的。對於年輕的團隊來說，我們必須看到這是我們未來 25 年發展的基礎，這讓我們感到非常興奮。

Congratulations.

恭喜。

Our next question is coming from Timna Tanners with Wolfe Research.

我們的下一個問題來自於 Wolfe Research 的 Timna Tanners。

I guess I had another big picture question, if you could indulge me. There are so many new galvanizing lines being added just by you guys, by Nucor for sure, definitely some planned ones around the corner potentially from U.S. Steel and Ternium. I'm just wondering, is there a structurally better outlook for galvanize or some incremental demand story or some supply piece I'm missing that's going to continue to support that level -- increased level of galvanized supply?

我想我還有另一個大問題，如果你能放縱我的話。有很多新的鍍鋅線是你們添加的，當然是 Nucor 的，肯定有一些計劃中的，可能來自 U.S. Steel 和 Ternium。我只是想知道，鍍鋅的結構上是否有更好的前景，或者一些增量需求故事或我缺少的一些供應部分將繼續支持這一水平 - 鍍鋅供應水平的提高？

Well, I think the utilization of galvanized product is just generally expanding. I don't know whether you have a crawl around cars, but over my 20 or 30 years, it went from just 1 or 2 parts of the car to be galvanized. Now, almost the whole car is becoming galvanized. So I think there's just a general expansion of that.

好吧，我認為鍍鋅產品的使用量正在普遍擴大。我不知道你是否有在汽車周圍爬行，但在我 20 或 30 年的時間裡，它只是從汽車的 1 或 2 個部件開始進行鍍鋅。現在，幾乎整輛汽車都在鍍鋅。所以我認為這只是一個普遍的擴展。

Over time, people talk about the lightweighting in the automotive arena or lightweighting comes from stronger products, but also comes through thinner gauge material. So if you look at the length of coated material today versus the past, just thinner means less throughput and needs more lines to get the same volume. So I don't see there being a galvanized flood or issue that you might see.

隨著時間的推移，人們談論汽車領域的輕量化，或者輕量化來自更堅固的產品，但也來自更薄的材料。因此，如果您比較今天與過去塗層材料的長度，更薄意味著更少的吞吐量，並且需要更多的生產線才能獲得相同的體積。因此，我看不到您可能會看到的鍍鋅洪水或問題。

Ladies and gentlemen, that concludes our question-and-answer session. I'd like to turn the call back over to Mr. Millett for any closing remarks.

女士們，先生們，我們的問答環節到此結束。我想將電話轉回給米利特先生，以聽取任何結束語。

Well, super. Well, thank you, everyone, for your time today. Certainly, for those that have enabled our success, our customers, our service providers. And most importantly, our teams. You're absolutely phenomenal group of people. We appreciate your loyalty because we've been doing business together for years and years and years.

嗯，超級。好吧，謝謝大家，今天的時間。當然，對於那些使我們成功的人，我們的客戶，我們的服務提供商。最重要的是，我們的團隊。你們絕對是一群了不起的人。我們感謝您的忠誠，因為我們多年來一直在共同開展業務。

And to those in the investment community that support us, thank you. We will endeavor to continue to treat our money or SDI's money like our own, like your money. We're going to utilize it very, very effectively. I think if you look at our use of those proceeds, we're very diligent, very disciplined in this interesting environment, spending money, again, effectively with higher returns than perhaps the industry in general.

對於支持我們的投資界人士，謝謝。我們將努力繼續像對待我們自己的錢一樣對待我們的錢或 SDI 的錢，就像您的錢一樣。我們將非常、非常有效地利用它。我認為，如果您看看我們對這些收益的使用，我們會非常勤奮，在這個有趣的環境中非常自律，再次花錢，有效地獲得了比整個行業更高的回報。

So thank you. Thank you for your support and to every individual of the SDI family that's on the line. Thank you for what you do. Be safe each and every day and look after each other. Cheers. Bye.

所以謝謝。感謝您的支持以及在線的 SDI 大家庭中的每一個人。謝謝你所做的。每天都要安全，互相照顧。乾杯。再見。

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

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