Strattec Security Corp (STRT) 2026 Q3 法說會逐字稿

Greetings, and welcome to the Strattec third-quarter fiscal year 2026 financial results. (Operator Instructions) As a reminder, this conference is being recorded.

各位好，歡迎參加 Strattec 2026 會計年度第三季財務業績說明會。（接線員指示）提醒各位，本次電話會議將被錄音。

It is now my pleasure to introduce your host, Deborah Pawlowski, Investor Relations for Strattec. Please go ahead.

現在很榮幸為各位介紹本次會議主持人：Strattec 投資人關係部 Deborah Pawlowski。請開始。

Thank you, and good morning, everyone. We appreciate you joining us for Strattec's third-quarter fiscal 2026 financial results conference call. Joining me on the call today are Jennifer Slater, our President and Chief Executive Officer, and Mathew Pauli, our Senior Vice President and Chief Financial Officer. Jen and Matt will review our financial results, the progress we are making on our transformation and our outlook. You can find a copy of the news release and the slides that accompany our conversation today on the Investor Relations section of the company's website.

謝謝，各位早安。感謝各位參加 Strattec 2026 會計年度第三季財務業績電話會議。今天與我一同出席的有：我們的總裁兼執行長 Jennifer Slater，以及資深副總裁兼財務長 Mathew Pauli。Jen 與 Matt 將回顧我們的財務結果、我們在轉型方面取得的進展，以及我們的展望。您可在公司網站的投資人關係專區找到本次新聞稿與搭配今日討論的簡報投影片。

If you are reviewing those slides, please turn to slide 2 for the safe harbor statement. As you are aware, we may make some forward-looking statements on this call during the formal discussion as well as during the Q&A. These statements apply to future events that are subject to risks and uncertainties as well as other factors that could cause actual results to differ materially from what is stated on today's call. These risks and uncertainties and other factors are discussed in the earnings release as well as with other documents filed by the company with the Securities and Exchange Commission. You can find these documents on our website as well.

若您正在查看投影片，請翻到第 2 頁的安全港聲明。如各位所知，我們可能會在本次電話會議的正式討論以及問答環節中做出若干前瞻性陳述。這些陳述涉及未來事件，並受風險與不確定性以及其他因素影響，可能導致實際結果與今日電話會議所述內容出現重大差異。這些風險與不確定性及其他因素已在財報新聞稿以及公司向美國證券交易委員會提交的其他文件中討論。您也可在我們的網站上找到這些文件。

I want to also point out that during today's call, we will discuss some non-GAAP measures. We believe these will be useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. We have provided reconciliations of non-GAAP to comparable GAAP measures in the tables accompanying the earnings release and slides.

我也要指出，在今天的電話會議中，我們將討論一些非 GAAP 指標。我們相信這些指標有助於評估我們的表現。您不應將這些補充資訊的呈現視為獨立資訊，或作為依 GAAP 編製之結果的替代。我們已在隨財報新聞稿與投影片附上的表格中，提供非 GAAP 與可比 GAAP 指標之調節表。

With that, I'll turn the call over to Jen, who will begin with slide 3.

接下來我把電話交給 Jen，她將從第 3 頁開始。

Thank you, Deb, and good morning, everyone. We delivered another solid quarter and continued to make progress on our transformation despite a challenging automotive environment. Our previously completed restructuring actions delivered $1.9 million in savings this quarter. This is a peak level as we lap some of the benefits from the prior year restructuring actions.

謝謝你，Deb，各位早安。儘管汽車產業環境充滿挑戰，我們仍交出另一個穩健的季度，並持續推進轉型。我們先前完成的重整措施在本季帶來 190 萬美元的節省。由於我們正進入與前一年重整措施效益重疊比較的期間，這是節省效益的高峰水準。

We generated $11.4 million of operating cash flow in the quarter and ended the third quarter with $107 million of cash on hand. That liquidity gives us flexibility to continue investing in the business, support customers and navigate a dynamic industry backdrop. While sales were down from prior year, the decline was in line with expectations, and we continue to improve profitability, generate strong cash flow and maintain a very strong balance sheet.

本季我們創造 1,140 萬美元的營運現金流，並在第三季末持有 1.07 億美元現金。這樣的流動性讓我們能更有彈性地持續投資業務、支援客戶，並在多變的產業背景下前行。雖然銷售額較去年同期下滑，但降幅符合預期；我們仍持續提升獲利能力、產生強勁現金流，並維持非常穩健的資產負債表。

Despite lower revenue and ongoing foreign exchange headwinds, gross margin expanded to 16.5%, supported by restructuring savings, recoveries tied to canceled customer programs and continued operational focus.

儘管營收下降且外匯逆風持續，毛利率仍擴大至 16.5%，主要受重整節省、與客戶取消專案相關的回收款，以及持續的營運聚焦所支撐。

As highlighted on slide 4, our priority remains the execution of our transformation plan with discipline and consistency. We are working to build a more predictable, higher-performing company, and that means staying focused on daily operational execution while continuing to put the right processes, talent and systems in place.

如第 4 頁所示，我們的首要任務仍是以紀律與一致性執行轉型計畫。我們正致力打造一家更可預測、績效更高的公司；這意味著在持續建立正確的流程、人才與系統的同時，也要專注於每日的營運執行。

During the quarter, we made additional changes within our Mexico operations that are expected to provide $800,000 in incremental annualized savings beginning in the fourth quarter. More broadly, the actions we have taken over the last several quarters helped to improve the way the business operates and better aligns our cost structure with the business we have today.

本季我們在墨西哥營運據點進一步進行調整，預期自第四季起可帶來每年約 80 萬美元的新增年化節省。更廣泛而言，我們在過去幾季採取的行動，有助於改善業務運作方式，並使成本結構更貼近我們目前的業務規模。

Equally as important as our focus on improving our cost structure is a transformation for how we approach growth. As you know, the automotive industry is long cycle and cyclical with intense competition and more recently, there have also been challenging external factors such as tariffs and supply chain challenges within our business and the broader industry.

與改善成本結構同等重要的是，我們也在轉變成長的思維與做法。如各位所知，汽車產業週期長且具循環性，競爭激烈；而近來也出現關稅、供應鏈挑戰等外部不利因素，影響我們的業務以及整體產業。

As a result, our strategic growth initiatives are centered on how we build a sustainable business that can deliver resilient and predictable growth even in a challenging industry. From a commercial standpoint, we are focused on capturing additional content with our current customers by deepening our relationships and being involved in advanced development on new platforms.

因此，我們的策略性成長計畫聚焦於如何打造一個可持續的企業，即使在充滿挑戰的產業中，也能提供具韌性且可預測的成長。從商務面來看，我們著重於透過深化合作關係、參與新平台的前期開發，來在現有客戶中爭取更多供應內容（content）。

In addition, we are starting to develop relationships with a more diverse set of customers that have U.S. production sites and looking to source locally. We are also focused on innovation and a product strategy that is anchored to engineering-led access systems, organized into 3 core product categories of permission, motion and hold.

此外，我們也開始與更多元的客戶建立關係，這些客戶在美國設有生產基地並希望就近採購。我們同時聚焦於創新，以及以工程主導的進入（access）系統為核心的產品策略，並將其組織為三大核心產品類別：授權（permission）、動作（motion）與固定（hold）。

The team is busy defining technical product road maps that are aligned with customer requirements and current and future technologies. We are very early in our execution on these growth initiatives. Importantly, we have the balance sheet and financial flexibility to support our efforts and the broader transformation of Strattec.

團隊正積極制定技術產品路線圖，使其與客戶需求以及現有與未來技術相一致。我們在這些成長計畫的執行上仍處於非常早期的階段。重要的是，我們擁有資產負債表與財務彈性，可支援我們的努力以及 Strattec 更廣泛的轉型。

With that, I'll turn the call over to Matt to walk through the financial details.

接下來我把電話交給 Matt，請他說明財務細節。

Thanks, Jen, and good morning, everyone. Please turn to slide 5. As Jen pointed out, sales in the quarter were down 4.5% as lower volume and EV program cancellations were only partially offset by pricing benefits and tariff recoveries. The annual impact of the customer cancellations on reduced EV platforms is about $9 million, of which about 2/3 we have already seen in our year-to-date fiscal 2026 results.

謝謝你，Jen，各位早安。請翻到第 5 頁。如 Jen 所指出，本季銷售額下滑 4.5%，原因是出貨量下降與電動車（EV）專案取消，僅部分被價格效益與關稅回收所抵銷。客戶取消縮減之 EV 平台對年度營收的影響約為 900 萬美元，其中約 2/3 我們已在 2026 會計年度迄今的結果中反映。

Our largest declines by customer were with Ford and Hyundai/Kia, which were both down a little over 10% year-over-year in the quarter. During the quarter, we did see higher sales to Tier 1 customers and Stellantis as they increased production. By product, door handles and keys and lock sets were steady, while power access and latches were down year-over-year.

以客戶別來看，本季降幅最大的為 Ford 與 Hyundai/Kia，兩者年增率皆下滑略高於 10%。本季我們確實看到對一級供應商（Tier 1）客戶以及 Stellantis 的銷售增加，因其提高產量。以產品別來看，車門把手以及鑰匙與鎖組（lock sets）表現持平，而電動進入（power access）與門閂（latches）則較去年同期下滑。

Please turn to slide 6. Gross profit for the quarter was $22.7 million, compared with $23.1 million in the prior year period. While gross profit dollars were modestly down on lower sales, gross margin improved by 50 basis points year-over-year to 16.5%, reflecting the value of our transformation actions. The quarter benefited from restructuring savings of approximately $1.7 million as well as recoveries related to canceled customer programs. Those benefits were partially offset by higher labor and benefit costs, incremental tariff costs and a meaningful foreign exchange headwind.

請翻到第 6 頁。本季毛利為 2,270 萬美元，較去年同期的 2,310 萬美元略低。雖然因銷售下降使毛利金額小幅下滑，但毛利率年增 50 個基點至 16.5%，反映我們轉型行動的成效。本季受惠於約 170 萬美元的重整節省，以及與客戶取消專案相關的回收款。上述效益部分被較高的人工與福利成本、額外的關稅成本，以及顯著的外匯逆風所抵銷。

As we previously communicated, the annual cost of incremental tariffs has been approximately $5 million to $7 million, of which about half were IEEPA tariffs. We have recovered a majority of the tariff costs on a delayed basis through price increases or pass-throughs to OEMs and will now pursue past IEEPA tariff recoveries from the government, which we will have to then pass back to our customers.

如我們先前所溝通，新增關稅的年度成本約為 500 萬至 700 萬美元，其中約一半為 IEEPA 關稅。我們已透過調價或轉嫁給 OEM 的方式，以延遲回收的形式收回大部分關稅成本；接下來我們將向政府追討過去的 IEEPA 關稅回收款，而該等回收款之後必須再返還給我們的客戶。

On a year-to-date basis, we continue to see the benefits of pricing actions, operational improvements and restructuring savings come through in our margins, although foreign exchange remains an ongoing headwind. Overall, we believe these results show that we are improving the underlying earnings power of the business even in a softer production environment.

以年初至今來看，我們持續看到調價措施、營運改善與重整節省對毛利率的正面貢獻，儘管外匯仍是持續的逆風。整體而言，我們認為這些結果顯示，即使在較疲弱的生產環境下，我們仍在提升業務的基礎獲利能力。

Please turn to slide 7. Selling, administrative and engineering expenses were $17.6 million in the quarter or 12.8% of sales, compared with $16 million or 11.1% of sales in the prior year period. The increase reflects continued business transformation activity, executive transition costs, higher salaries and benefits and third-party engineering support. At the same time, these expenses also reflect investments we are making to strengthen the business.

請翻到第 7 頁。本季銷售、管理及工程費用為 1,760 萬美元，占銷售額 12.8%；去年同期為 1,600 萬美元，占銷售額 11.1%。增加主要反映持續的業務轉型活動、管理階層交接成本、較高的薪資與福利，以及第三方工程支援。同時，這些費用也反映我們為強化業務所進行的投資。

As Jen mentioned, we are continuing to upgrade talent, improve internal capabilities and support the systems and processes needed to create a more effective and scalable operating model. We remain focused on cost discipline. And over time, we still expect SAE to move closer to our targeted operating range. For now, the reported expense level reflects both the work required to transform the business and the near-term investments needed to support that effort.

如 Jen 所提到，我們持續升級人才、提升內部能力，並支援建立更有效且可擴展之營運模式所需的系統與流程。我們仍專注於成本紀律。隨著時間推進，我們仍預期 SAE 將更接近我們的目標營運區間。就目前而言，所報告的費用水準同時反映轉型業務所需的工作，以及支援該努力所需的短期投資。

Please turn to slide 8. Net income attributable to Strattec in the third quarter was $3.2 million or $0.78 per diluted share compared with $5.4 million or $1.32 per diluted share in the prior year quarter. On an adjusted basis, net income was $3.7 million or $0.90 per diluted share. The year-over-year decline in quarterly earnings was primarily driven by unfavorable changes in foreign exchange, which was a headwind in both cost of goods sold and other income and expense.

請翻到第 8 頁。第三季歸屬於 Strattec 的淨利為 320 萬美元，或稀釋後每股盈餘 0.78 美元；去年同期為 540 萬美元，或稀釋後每股盈餘 1.32 美元。以調整後基礎計算，淨利為 370 萬美元，或稀釋後每股盈餘 0.90 美元。本季獲利年減主要由外匯不利變動所致，該因素同時在銷貨成本以及其他收益與費用中形成逆風。

Nonoperating other income and expense in the prior year included a $235,000 foreign currency gain, while the current year included a $900,000 currency loss, the majority of which is unrealized losses on peso forward contracts, driven by the sudden and short-lived strengthening of the U.S. dollar at the end of the quarter.

去年同期的非營運其他收益與費用包含 23.5 萬美元的外幣收益；而本年度則包含 90 萬美元的匯兌損失，其中大部分為墨西哥披索遠期合約的未實現損失，係由於本季末美元突然且短暫走強所致。

The currency loss had a $0.16 negative impact on earnings per share. Based on the accounting mark-to-market requirements for the forward contracts, this could reverse at the end of the fourth quarter given where the peso is trading today.

匯兌損失對每股盈餘造成了 0.16 美元的負面影響。根據遠期合約的會計按市價評價（mark-to-market）要求，鑑於今日披索的交易水準，這項影響在第四季末可能會反轉。

On a year-to-date basis, earnings per share was up 46% over the prior year period, reflecting the cumulative benefits of cost reduction actions, productivity improvements and stronger underlying operating performance. Adjusted EBITDA was $10.1 million in the quarter compared to $12.5 million in the prior year period. FX was the primary reason for the decline. On a year-to-date basis, adjusted EBITDA was $37.9 million, a 23% increase over the prior year period.

以年初至今來看，每股盈餘較去年同期成長 46%，反映了成本削減措施、生產力提升以及更強勁的基本營運表現所帶來的累積效益。本季調整後 EBITDA 為 1,010 萬美元，去年同期為 1,250 萬美元。外匯是下滑的主要原因。以年初至今來看，調整後 EBITDA 為 3,790 萬美元，較去年同期增加 23%。

Turning to slide 9. The business continues to demonstrate that it is a strong cash generator with cash from operations in the third quarter of $11.4 million. We ended the quarter with $107 million in cash and cash equivalents. We also continued to reduce debt associated with the joint venture credit facility. And subsequent to quarter end, that facility was replaced with a new revolving credit agreement that extended the maturity and eliminated the Strattec guarantee on borrowings.

接著看第 9 頁。本業持續展現強勁的現金創造能力，第三季營運活動現金流為 1,140 萬美元。本季末我們持有 1.07 億美元的現金及約當現金。我們也持續降低與合資企業信貸融資相關的負債。此外，在季末之後，該融資已由新的循環信用協議取代，延長了到期日，並取消了 Strattec 對借款的保證。

Our balance sheet remains a significant strength. It supports investments in organic growth, continued process modernization and automation, the flexibility needed to manage through cyclical industry conditions and enables us to execute on our plans for growth.

我們的資產負債表仍然是一項重要優勢。它支持我們投資於有機成長、持續的流程現代化與自動化，提供在產業景氣循環中所需的彈性，並使我們能夠執行成長計畫。

Please turn to slide 10. As we look ahead, we continue to expect a moderate market environment, including the impact of canceled EV programs and lower production on certain key platforms. At the same time, we believe the business is better positioned than it was a year ago with a stronger operating foundation and clearer priorities. We expect revenue in the fourth quarter will be down 3% to 4% year-over-year, reflecting the same dynamics that we saw in the third quarter.

請翻到第 10 頁。展望未來，我們仍預期市場環境溫和，包括電動車（EV）計畫取消以及部分關鍵平台產量下滑的影響。同時，我們認為相較一年前，本業已具備更佳定位，擁有更強的營運基礎與更清晰的優先事項。我們預期第四季營收將年減 3% 至 4%，反映與第三季相同的動態。

As we've mentioned before, over the next few years, we are targeting gross margin of 18% to 20%, which assumes the peso at its 5-year average of $19.50. We are currently operating in the 16-plus range. Over the next several years, we are targeting SAE of approximately 10% to 11% of revenue, excluding unusual items. Our focus remains on continuing to improve operational performance, maintaining cost discipline, supporting customers effectively and generating cash.

如同我們先前提到的，未來幾年我們的目標是毛利率達到 18% 至 20%，此目標假設披索匯率為其 5 年平均的 19.50。我們目前的營運水準在 16% 以上。未來幾年，我們的目標是 SAE 約占營收的 10% 至 11%，不含非經常性項目。我們的重點仍是持續改善營運表現、維持成本紀律、有效支援客戶並創造現金。

Over time, we remain focused on building a stronger and more consistently profitable business through a combination of cost improvements, modernization efforts and more effective positioning for future customer awards.

長期而言，我們仍專注於透過成本改善、現代化努力，以及更有效地為未來客戶得標做好定位，來打造更強且更穩定獲利的企業。

With that, I'll turn it back to Jen to cover slide 11.

接下來我把時間交還給 Jen，請她說明第 11 頁。

Thanks, Matt. We presented our vision last quarter, which reflects the broader transformation taking place at Strattec and the role we aim to play in safe and secure access solutions. Our vision is to be the most trusted global leader in safe and secure access solutions for the automotive and mobility industries by creating the ultimate access experience for consumers.

謝謝，Matt。我們在上季提出了願景，反映 Strattec 正在進行的更廣泛轉型，以及我們希望在安全可靠的進出解決方案中扮演的角色。我們的願景是：透過為消費者打造終極的進出體驗，成為汽車與移動產業中最受信賴的全球安全可靠進出解決方案領導者。

As we discussed previously, we have been working to sharpen how we align internally around a common purpose and how we present these changes externally. This work supports our internal culture and organizational alignment, so the team is engaged with the direction of the company and the role that they play in that future. It also reinforces the importance of innovation, collaboration and accountability as we continue to transform the business.

如同先前討論，我們一直在努力更明確地強化內部如何圍繞共同使命對齊，以及如何對外呈現這些改變。這項工作支持我們的內部文化與組織對齊，使團隊能投入公司的方向以及他們在未來所扮演的角色。同時也強化創新、協作與當責的重要性，因為我們持續推動企業轉型。

We believe the actions we are taking are building a stronger company with improved resilience, better earnings power and a clearer path to long-term value creation. We have a strong balance sheet and engaged leadership team and sharper strategic focus. We are confident in the progress we are making and the opportunities ahead. With that, operator, we can open the call for questions.

我們相信目前採取的行動正在打造更強的公司，提升韌性、獲利能力，並提供更清晰的長期價值創造路徑。我們擁有強健的資產負債表、投入的領導團隊，以及更聚焦的策略方向。我們對目前的進展與未來機會充滿信心。接下來，接線員，我們可以開放提問。

(Operator Instructions) John Franzreb, Sidoti & Company.

（接線員指示）Sidoti & Company 的 John Franzreb。

I'd like to start with the $600,000 in canceled programs. I'm curious if those are programs that you walked away from or if those are programs that the customer canceled.

我想先從取消計畫的 60 萬美元談起。我想了解這些是你們主動退出的計畫，還是客戶取消的計畫。

Yes. I'll let Matt talk a little bit more about the financials. But the canceled programs are really what you've seen in the headlines from our customers on a shift of EV programs back to ICE in North America. And so that's really just the impact of those decisions that the customer made.

是的。我會讓 Matt 再多談一些財務面。不過，這些取消的計畫，基本上就是你在新聞標題中看到的：我們的客戶在北美將部分電動車（EV）計畫轉回內燃機（ICE）。因此，這主要是客戶所做決策帶來的影響。

Yes. And John, it's about $1.3 million of a benefit in our results. About half of it is in cost of goods sold and the other half is within SAE. And it's really recovery of costs that we previously had expensed for the development on those programs.

是的。John，這對我們的結果大約帶來 130 萬美元的正面效益。其中約一半反映在銷貨成本，另一半則在 SAE。這主要是回收我們先前已就這些計畫的開發所費用化的成本。

Okay. I guess the reason I phrased the question the way I did was that I know that there's a review of unprofitable or less profitable programs. So I'm curious where you stand in that evaluation.

了解。我之所以那樣問，是因為我知道你們正在檢視不獲利或獲利較低的計畫。所以我想了解你們在這項評估上的進度。

Yes. We did a portfolio review first, and that's why we made the decision not to continue to invest in our switch portfolio. And then we continue, obviously, to look at opportunities for cost optimization versus pricing opportunities. So that's an ongoing effort for us, John, but nothing in this quarter related to that.

是的。我們先做了產品組合檢視，因此才決定不再持續投資我們的開關產品組合。接著我們也持續評估成本最佳化的機會，以及相對應的定價機會。所以這對我們來說是持續進行的工作，John，但本季沒有與此相關的事項。

Got it. And since we're talking about particular product lines, I saw in the presentation that power access was down. Maybe can we talk to why that was the case?

了解。既然我們在談特定產品線，我在簡報中看到電動進出（power access）下滑。可以談談原因嗎？

Yes. That really was just timing of builds from our customers between Hyundai/Kia and Ford. So we don't see that impacting long term. That's really more just of a timing of a build impact.

可以。那主要只是客戶在 Hyundai/Kia 與 Ford 之間的生產排程時點差異所致。因此我們不認為會對長期造成影響，這比較是生產時點造成的影響。

All right. Fair enough. I guess I'll ask one more question, I'll get back into queue. What is needed to move the gross margin from the 16% threshold to the 18% target range? What are the levers you need to pull still?

好，合理。我再問最後一題，之後回到排隊。要把毛利率從 16% 的門檻提升到 18% 的目標區間，需要做哪些事？你們還需要拉動哪些槓桿？

Yes. I think we're pleased with the progress that we've made so far on gross margin. We've talked about the fact that we still feel early in the transformation, and there's still a lot of work to do on cost optimization.

是的。我們對目前毛利率的進展感到滿意。我們也談過，我們仍處於轉型的早期階段，在成本最佳化方面還有很多工作要做。

So we'll continue to have very granular focus on further cost opportunities that will help that gross margin. The other piece is, as you mentioned, the portfolio review on pricing. We talked about in the past that we had really taken the low-hanging fruit, but we're continuing to look at where there's further opportunities on pricing. And then longer term, volume is important. So I think at this volume level, we're confident we can get to the 18% to 20%, but volume always matters longer term.

因此我們會持續以非常細緻的方式聚焦更多成本機會，以推升毛利率。另一個面向是你提到的產品組合定價檢視。我們過去談過，低垂的果實大多已摘取，但我們仍在尋找進一步的定價機會。再者，長期而言，產量也很重要。所以在目前的產量水準下，我們有信心可以達到 18% 到 20%，但長期來看產量始終很關鍵。

Yes. The only thing I'd add, John, is if you look at our gross margin, your last fiscal year, it was 15%. If I look at it on a trailing 12-month basis kind of at the end of the third quarter here, it's just north of 16.5% on a trailing 12-month basis.

是的。John，我唯一想補充的是，如果你看我們的毛利率，上個會計年度是 15%。如果以第三季末的過去 12 個月（TTM）來看，TTM 毛利率略高於 16.5%。

So we are seeing improvement in our gross margins. The actions that we've taken to kind of rightsize the cost structure and improve the margin. So we feel comfortable, kind of, with the target. Kind of the items we have line of sight to get to the 18% to 20%.

所以我們確實看到毛利率在改善。我們採取的行動，包括調整成本結構規模並提升利潤率。因此我們對目標感到安心，且對於達到 18% 到 20% 的項目，我們也有明確可見的路徑。

And I think it also is a proof point for our cash generation because we've continued to have stable cash generation from the improvements that we've put into the fundamentals of the business.

我認為這也證明了我們的現金創造能力，因為我們持續從強化業務基本面所帶來的改善中，維持穩定的現金產出。

All right. I (inaudible) then. What were the changes that you made in Mexico that would benefit you?

好。我（聽不清）那麼，你們在墨西哥做了哪些改變會讓你們受益？

We implemented additional restructuring action in Mexico. That's driving the additional savings that you'll see starting here in the fourth quarter. It's about $800,000.

我們在墨西哥實施了額外的重組措施。這將帶動你從第四季開始看到的額外節省，約為 80 萬美元。

And I think, John, that's where we continue to have opportunity. What we're balancing is making sure that as we optimize the business, we don't impact delivery or quality for our customers.

而且我想，John，這也是我們持續看到機會的地方。我們在權衡的是，確保在最佳化業務的同時，不會影響對客戶的交付或品質。

So it's a measured approach of getting our cost structure in the right way. Part of it is just looking at the way we do our business and improving processes. Part of it is the automation activities, the simple automation activities that we've talked about and continuing to look at benchmark cost structures against where we're at.

因此我們採取審慎的方式，讓成本結構調整到合適的狀態。其中一部分是檢視我們的作業方式並改善流程；另一部分是我們談過的自動化活動，也就是一些較簡單的自動化活動；同時也持續將我們的成本結構與標竿進行比較。

So this is where we think there's continued opportunity, but it's really in a balanced measure to make sure that we are not impacting our customers from a quality and a delivery standpoint while we rightsize our cost structure.

所以我們認為這裡仍有持續的機會，但會以平衡、審慎的方式推進，確保在我們調整成本結構規模的同時，不會在品質與交付面影響客戶。

(Operator Instructions) At this time, there are no further questions. I would like to thank everyone for their participation in today's conference. You may disconnect your lines at this time. Have a great day.

（接線員指示）目前沒有其他問題。感謝各位參與今天的電話會議。現在您可以掛斷電話線路。祝您有美好的一天。