泰科電子 (TEL) 2024 Q2 法說會逐字稿

Everyone, thank you for standing by, and welcome to the TE Connectivity Second Quarter Results Call for Fiscal Year 2024. (Operator Instructions) As a reminder, today's call is being recorded.

各位，感謝大家的耐心等待，歡迎參加 TE Con​​nectivity 2024 財年第二季業績電話會議。

I would now like to turn the conference over to our host, Vice President of Investor Relations, Sujal Shah. Please go ahead.

現在我想將會議交給我們的東道主、投資者關係副總裁 Sujal Shah。請繼續。

Good morning, and thank you for joining our conference call to discuss TE Connectivity's second quarter 2024 results and outlook for our third quarter. With me today are Chief Executive Officer, Terrence Curtin; and Chief Financial Officer, Heath Mitts.

早安，感謝您參加我們的電話會議，討論 TE Con​​nectivity 的 2024 年第二季度業績和第三季度的前景。今天與我在一起的有執行長泰倫斯‧科廷 (Terrence Curtin)；財務長希思‧米茨 (Heath Mitts)。

During this call, we will provide certain forward-looking information, and we ask you to review the forward-looking cautionary statements included in today's press release. In addition, we will use certain non-GAAP measures in our discussion this morning, and we ask you to review the sections of our press release and the accompanying slide presentation that address the use of these items.

在本次電話會議中，我們將提供某些前瞻性訊息，我們請您查看今天新聞稿中包含的前瞻性警示聲明。此外，我們將在今天早上的討論中使用某些非公認會計準則衡量標準，我們請您查看我們的新聞稿以及隨附的幻燈片簡報中涉及這些項目使用的部分。

The press release and related tables, along with the slide presentation, can be found on the Investor Relations portion of our website at te.com. (Operator Instructions)

新聞稿和相關表格以及投影片簡報可在我們網站 te.com 的投資者關係部分找到。 （操作員說明）

Now let me turn the call over to Terrence for opening comments.

現在讓我將電話轉給特倫斯以徵求開場評論。

Thanks, Sujal, and we appreciate everyone joining us today.

謝謝 Sujal，我們感謝今天加入我們的所有人。

As I'd like to normally do before I get into the slides, I do want to take a moment to provide some performance highlights along with what we're seeing versus our call 90 days ago. We continue to be in a dynamic global economic environment. Against this backdrop, the performance of our markets are largely consistent with our expectations, resulting in second quarter sales being in line with our guidance with sequential growth in all 3 of our segments. In addition, we experienced improved order levels with sequential growth in orders in all of our segments, and I'll provide you more details on orders later in the call.

正如我在開始投影片之前通常會做的那樣，我確實想花點時間提供一些效能亮點以及我們所看到的內容與 90 天前的電話會議的對比。我們繼續處於充滿活力的全球經濟環境中。在此背景下，我們市場的表現基本上符合我們的預期，因此第二季的銷售額符合我們的指導，所有三個細分市場均實現連續成長。此外，我們的訂單水平有所提高，所有部門的訂單都連續增長，我將在稍後的電話會議中向您提供有關訂單的更多詳細資訊。

Our results reflect execution against key items we committed to coming into fiscal 2024. We highlighted to you our focus on margin performance and the benefits from non-volume-related operational levers to drive margin expansion. Our progress on these are evident in our results as we delivered 13% year-over-year adjusted earnings per share growth, which was driven by adjusted operating margin expansion of 250 basis points.

我們的業績反映了我們承諾在 2024 財年實現的關鍵項目的執行情況。我們在這些方面取得的進展在我們的業績中顯而易見，調整後每股收益同比增長 13%，這是由調整後營業利潤率擴張 250 個基點推動的。

Adjusted operating margins were up in each segment versus the prior year, and we expect to continue to deliver strong margin performance through the remainder of this year. With the improvements that we've made, we expect to deliver double-digit earnings growth this fiscal year, driven by a couple of hundred basis points of adjusted operating margin expansion even in the slow growth environment.

每個部門的調整後營業利潤率均較上年有所上升，我們預計今年剩餘時間將持續維持強勁的利潤率表現。透過我們所做的改進，即使在緩慢增長的環境下，我們預計本財年也將實現兩位數的盈利增長，這得益於調整後的營業利潤率擴張幾百個基點的推動。

The high quality of our earnings continues to be reflected in our strong cash generation model. Through the first half of this year, we delivered record free cash flow of $1.1 billion, which is up over 30% versus the prior year. And we expect to deliver another year of free cash flow conversion above 100%.

我們的高品質獲利持續體現在我們強大的現金產生模式中。今年上半年，我們實現了創紀錄的 11 億美元自由現金流，比前一年增長了 30% 以上。我們預計今年的自由現金流轉換率將超過 100%。

With the strong cash generation, we deployed over $1.5 billion so far this year, with $1.2 billion being returned to shareholders and approximately $350 million being deployed last quarter for the Schaffner acquisition that will be in our Industrial segment. Our cash generation model continues to give us both confidence and opportunities to return capital to shareholders while continuing to support bolt-on M&A activities.

憑藉強勁的現金產生能力，今年迄今為止，我們部署了超過 15 億美元，其中 12 億美元返還給股東，上季度部署了約 3.5 億美元用於收購 Schaffner，該收購將屬於我們的工業部門。我們的現金產生模式持續為我們提供信心和機會，將資本回饋給股東，同時繼續支持補充併購活動。

So let me now share what we're seeing in our market since our call 90 days ago. Our view of the transportation end markets remains unchanged from our prior view, with global auto production still expected to grow slightly this year, while we continue to expect weakness in commercial transportation end markets both in Europe and in the Americas.

現在讓我分享一下自 90 天前通話以來我們所看到的市場狀況。我們對運輸終端市場的看法與先前的觀點保持不變，預計今年全球汽車產量仍將小幅增長，而我們繼續預期歐洲和美洲的商業運輸終端市場將疲軟。

In our Communications segment, we continue to see momentum in high-speed cloud and AI applications and are seeing the impacts of the destocking coming to the end in both of our businesses in this segment. Because of these trends, we expect the Communications segment to return to year-over-year growth in our third quarter.

在我們的通訊領域，我們繼續看到高速雲端和人工智慧應用的發展勢頭，並且看到去庫存的影響即將結束。由於這些趨勢，我們預計通訊部門將在第三季恢復年成長。

In our Industrial Solutions segment, the picture is the same that we've been saying for the last 6 months. We see 3 out of our 4 businesses continue to have growth momentum. However, our Industrial Equipment business continues to be impacted by destocking. As we think about the Industrial Equipment business, we are seeing early indications pointing to a potential normalization later this fiscal year.

在我們的工業解決方案部門，情況與我們過去 6 個月一直在說的一樣。我們看到四分之三的業務繼續保持成長動能。然而，我們的工業設備業務繼續受到去庫存的影響。當我們考慮工業設備業務時，我們看到早期跡象表明本財年稍後可能會正常化。

And then one other thing I'd like to highlight is that we have seen the dollar strengthen against other currencies since our last earnings call, and this is resulting in an increased headwind to growth and earnings in our second quarter, and this will impact the third quarter as well.

我想強調的另一件事是，自上次財報電話會議以來，我們看到美元兌其他貨幣走強，這導致我們第二季度的增長和盈利面臨更大的阻力，這將影響第三季度也是如此。

And lastly, I want to reiterate that our long-term value creation model remains unchanged and is centered around 3 pillars. First, our portfolio is strategically positioned around secular growth trends, including the adoption of renewable energy, applications for cloud and artificial intelligence and growth in global hybrid and electric vehicle production. And when you think about the vehicle, we not only benefit from the electrification of the powertrain, but we also benefit from the electronification trends that include increased software-defined vehicle as well as increased safety and comfort features.

最後，我想重申，我們的長期價值創造模式保持不變，並圍繞著三大支柱。首先，我們的投資組合策略定位於長期成長趨勢，包括再生能源的採用、雲端和人工智慧的應用以及全球混合動力和電動車生產的成長。當您考慮車輛時，我們不僅受益於動力總成的電氣化，而且還受益於電子化趨勢，包括軟體定義車輛的增加以及安全性和舒適性功能的增加。

The second pillar of value creation is that we have operational levers to drive strong margin performance through an economic cycle. And our third lever is that we've established a strong cash generation model to return capital to shareholders while investing in bolt-on M&A opportunities.

價值創造的第二個支柱是我們擁有營運槓桿，可以在整個經濟週期中推動強勁的利潤表現。我們的第三個槓桿是，我們建立了強大的現金產生模式，將資本回饋給股東，同時投資補充併購機會。

Now with that as an overview, let's get into the presentation. I'd ask you to turn to Slide 3, and I'll discuss some of the highlights for the second quarter as well as our outlook for the third quarter, and then I'll hand it off to Heath who will get into more details in his section.

現在，作為概述，讓我們進入演示。我請您轉到幻燈片 3，我將討論第二季度的一些亮點以及我們對第三季度的展望，然後我將把它交給 Heath，他將詳細介紹更多細節在他的部分。

Our second quarter sales were $3.97 billion, which was in line with our guidance and up 3% organically on a sequential basis, with each segment delivering sales in line with our expectations. Adjusted earnings per share was ahead of our guidance at $1.86, which was up 13% versus the prior year. Adjusted operating margins were 18.5%, and this was up 250 basis points year-over-year, driven by strong operational performance.

我們第二季的銷售額為 39.7 億美元，符合我們的指導方針，並且環比有機成長 3%，每個部門的銷售額符合我們的預期。調整後每股收益高於我們預期的 1.86 美元，比上年增長 13%。調整後營業利益率為 18.5%，在強勁營運績效的推動下，較去年同期成長 250 個基點。

We are expecting third quarter sales of approximately $4 billion, reflecting organic growth on both a sequential and year-over-year basis. The year-over-year growth is expected to be driven by Transportation and Communications segments, partially offset by the effect of a stronger dollar. Adjusted earnings per share is expected to be approximately $1.85, and this is up 5% year-over-year and it does include a $0.15 headwind from both tax and currency exchange rates.

我們預計第三季銷售額約為 40 億美元，反映出環比和同比的有機成長。預計同比增長將由運輸和通訊部門推動，但部分被美元走強的影響所抵消。調整後每股收益預計約為 1.85 美元，年增 5%，其中確實包括來自稅收和貨幣匯率的 0.15 美元阻力。

And just moving away from the financials for one second. We did just issue our Connecting Our World report, which details our commitments around corporate responsibility. There are a number of initiatives that we're driving internally, and our goals are in line with both our purpose as well as our expectations from our customers.

現在先暫時離開財務問題。我們剛剛發布了「連結我們的世界」報告，其中詳細介紹了我們圍繞企業責任的承諾。我們正在內部推動許多舉措，我們的目標既符合我們的目的，也符合我們客戶的期望。

Some of the key highlights that I want to bring up to you is that we did achieve a 70%-plus reduction in both Scope 1 and Scope 2 greenhouse gas emissions over the past 3 years. And we also set our Scope 3 reduction targets, and these have been validated by the Science Based Targets initiative.

我想向大家介紹的一些重要亮點是，過去 3 年我們確實將範圍 1 和範圍 2 溫室氣體排放量減少了 70% 以上。我們還設定了範圍 3 的減排目標，這些目標已得到基於科學的目標倡議的驗證。

So with that as a quick overview of the quarter and our outlook, let me get into more details on orders, and that starts on Slide 4. As I highlighted earlier, we are seeing improved order levels. Our orders were up 6% sequentially to $4 billion with sequential growth in each segment. And really, this is the first time in 1.5 years that orders have been above $4 billion, and our book-to-bill is above 1. And we do believe that order patterns are indicating stability in most of our end markets we serve as well as the consistent service levels that we're providing to our customers.

因此，作為對本季和我們前景的快速概述，讓我從幻燈片 4 開始詳細介紹訂單。我們的訂單較上季成長 6%，達到 40 億美元，每個細分市場均達到季增。事實上，這是 1.5 年來第一次訂單超過 40 億美元，我們的訂單出貨比也超過 1。的服務水準。

Now getting into orders by segment. Transportation orders grew sequentially despite auto production declining sequentially to a little bit below 21 million units in the second quarter. We saw production in China that offset weak -- incremental weakness in North America. And going forward, we expect global auto production to be roughly 21 million units per quarter as we move through the second half of this fiscal year.

現在按細分市場進入訂單。儘管第二季汽車產量較上季下降至略低於 2,100 萬輛，但運輸訂單仍較上季成長。我們看到中國的產量抵消了北美的疲軟增量。展望未來，我們預計到本財年下半年，全球汽車產量將約為每季 2,100 萬輛。

In our Industrial segment, we saw 7% growth in orders sequentially, and this reflects the continued momentum that is offsetting ongoing destocking in the industrial equipment end markets. And in our Communications segment, our orders grew 30% sequentially, reflecting design win momentum in data center programs, and about half of the increase is driven by AI orders for delivery in 2025 in our data and device businesses.

在我們的工業部門，我們的訂單環比增長了 7%，這反映了抵消工業設備終端市場持續去庫存的持續勢頭。在我們的通訊領域，我們的訂單環比增長了 30%，反映出數據中心項目的設計獲勝勢頭，其中約一半的增長是由我們的數據和設備業務中 2025 年交付的人工智能訂單推動的。

Now with that as an overview of orders, let me now discuss year-over-year segment results, and I'd ask you to turn to Slide 5, and I'll start with Transportation. In Transportation, our Auto business grew 1% organically with double-digit growth in China, offset by declines in North America and Europe. While global auto production levels are consistent with our prior view, we are seeing different dynamics by region. Versus 90 days ago, our expectations of vehicle production have increased in China with a continued strong outlook for EV adoption and expansion in our content per vehicle.

現在，作為訂單的概述，現在讓我討論逐年細分結果，我請您轉向幻燈片 5，我將從運輸開始。在交通運輸方面，我們的汽車業務有機成長了 1%，其中中國的兩位數成長，被北美和歐洲的下滑所抵消。儘管全球汽車產量水準與我們先前的觀點一致，但我們看到各地區的動態有所不同。與 90 天前相比，我們對中國汽車產量的預期有所提高，電動車的採用和每輛車內容的擴展前景持續強勁。

In North America and Europe, OEMs are adapting their mix of production to better align with consumer preferences. Factoring in these dynamics, on a global basis, EV and hybrid production are both expected to increase by 24% this fiscal year, and we'll continue to see declines in internal combustion engine production.

在北美和歐洲，原始設備製造商正在調整其生產組合，以更好地滿足消費者的喜好。考慮到這些動態，在全球範圍內，本財年電動車和混合動力車的產量預計將增加 24%，而我們將繼續看到內燃機產量的下降。

The increase in the electrified powertrain autos will be driven by increased production in Asia, which is our largest sales region and where our auto team has a strong position. And just to give you a reminder, our content per vehicle is 1.5x higher on a hybrid and 2x higher on a full electric EV versus internal combustion platforms. We have established a global leadership position across all vehicle platforms at all major OEMs and start-ups and continue to expect long-term content growth above production of 4 to 6 points.

電動動力總成汽車的成長將受到亞洲產量增加的推動，亞洲是我們最大的銷售地區，我們的汽車團隊在亞洲擁有強大的地位。提醒您一下，與內燃機平台相比，我們每輛車的混合動力車含量高出 1.5 倍，全電動 EV 高出 2 倍。我們已經在所有主要 OEM 和新創企業的所有車輛平台上建立了全球領導地位，並繼續預計長期內容成長將高於產量 4 到 6 個百分點。

Now turning to the Commercial Transportation business, we saw a 4% organic decline, and this was driven by the heavy truck market declines in North America as well as in Europe. This was partially offset by a return to growth in China. And we expect this business to be down sequentially in the third quarter and expect these markets that we serve here to be down approximately mid-single digits this year due to market declines in the West.

現在轉向商業運輸業務，我們看到有機下降 4%，這是由北美和歐洲的重型卡車市場下降造成的。這被中國經濟恢復成長所部分抵銷。我們預計該業務將在第三季度連續下降，並預計由於西方市場下滑，我們在這裡服務的這些市場今年將下降約中個位數。

In our Sensors business, the sales decline continued to be driven by market weakness in industrial applications as well as portfolio optimization that we've talked to you about, where we've continued to organically exit lower-margin and lower-growth products.

在我們的感測器業務中，銷售額下降繼續受到工業應用市場疲軟以及我們與您討論過的產品組合優化的推動，我們繼續有機地退出低利潤和低成長的產品。

For the Transportation segment, adjusted operating margins were 20.4%, which is slightly above our target levels, and we expect to run at our target margins for the rest of this year. We are continuing to invest in our -- increase our investment in our Auto business to support engineering requirements for next-generation vehicles and whether they're around the electrification of the powertrain, high-speed Ethernet for data applications in the vehicle or miniaturized power and signal products to leverage next-generation architectural shifts.

對於運輸部門，調整後的營業利潤率為 20.4%，略高於我們的目標水平，我們預計今年剩餘時間將保持目標利潤率。我們將繼續投資——增加對汽車業務的投資，以支持下一代汽車的工程需求，無論它們是圍繞動力總成的電氣化、用於車輛數據應用的高速以太網還是小型化電源並發出信號以利用下一代架構轉變的產品。

Now let's get into the Industrial Solutions segment, and that's on Slide 6. In this segment, we continue to see the trends that we've discussed for the past few quarters. And while sales were down 6% organically at the segment level in the second quarter, we saw growth in 3 of our 4 businesses. And we expect continued growth in our AD&M, Medical and Energy businesses.

現在讓我們進入幻燈片 6 上的工業解決方案部分。儘管第二季各個細分市場的銷售額有機下降了 6%，但我們的 4 項業務中有 3 項實現了成長。我們預計 AD&M、醫療和能源業務將持續成長。

In the second quarter, our AD&M sales were up 17% organically, driven by growth in both the commercial aerospace and defense markets. In Medical, sales in the quarter were up 6% organically, driven by ongoing increases in interventional procedures. And in Energy, we saw organic growth driven in the Americas, offset by weakness in Europe, with continued strong momentum in renewable applications.

在商業航空航太和國防市場成長的推動下，第二季我們的 AD&M 銷售額有機成長了 17%。在醫療領域，受介入手術持續成長的推動，本季銷售額有機成長 6%。在能源方面，我們看到美洲推動了有機成長，但被歐洲的疲軟所抵消，再生能源應用的勢頭持續強勁。

And then finally, in our Industrial Equipment business where we're continuing to see the destocking, our sales were down 28% organically. While we're seeing some stabilization in order patterns pointing to normalization later this year, we still expect to see year-over-year declines in this business for the next couple of quarters as our customers adjust their inventory levels.

最後，在我們的工業設備業務中，我們繼續看到去庫存的情況，我們的銷售額有機下降了 28%。雖然我們看到訂單模式有所穩定，預示著今年稍後將實現正常化，但隨著我們的客戶調整庫存水平，我們仍然預計未來幾季該業務將出現同比下降。

On a margin perspective, the Industrial segment achieved 15%, which was in line with our expectations given current volume levels and business mix. We continue to expect segment margins to run into the mid-teens until the Industrial Equipment business returns to growth.

從利潤率角度來看，工業部門實現了 15%，這符合我們考慮到當前銷售水準和業務組合的預期。我們仍然預計，在工業設備業務恢復成長之前，該細分市場的利潤率將達到十幾歲左右。

Now I'd ask you to turn to Slide 7, and let me get into the Communications segment. In Communications, I am excited about a return to year-over-year growth in our third quarter now that destocking trends are largely behind us and momentum continues to build in next-gen cloud applications.

現在我請您轉到投影片 7，讓我進入通訊部分。在通訊領域，我對第三季恢復年成長感到興奮，因為去庫存趨勢基本上已經過去，並且下一代雲端應用程式的勢頭繼續增強。

Going forward, we now expect to deliver higher growth from artificial intelligence applications where we are increasing our investment to support future growth opportunities. Based upon our design win momentum, we expect to double our AI revenues from $200 million this year to $400 million next year and expect to build on this momentum to achieve annual revenues of roughly $1 billion in the following few years.

展望未來，我們現在期望人工智慧應用帶來更高的成長，我們正在增加投資以支持未來的成長機會。基於我們的設計獲勝勢頭，我們預計人工智慧收入將從今年的2 億美元翻一番至明年的4 億美元，並預計在此勢頭的基礎上，在未來幾年內實現約10 億美元的年收入。

Just to remind you where we play, we are focused on providing high-speed, low-latency connectivity to meet the needs of artificial intelligence workloads. And we generate 50% more content in accelerated compute platform versus traditional compute servers. Also, we're working closely with cloud customers as well as leading semiconductor companies with reference designs that call out TE Connectivity solutions.

只是想提醒您一下，我們的重點是提供高速、低延遲的連接，以滿足人工智慧工作負載的需求。與傳統運算伺服器相比，我們在加速運算平台中產生的內容多了 50%。此外，我們還與雲端客戶以及領先的半導體公司密切合作，提供採用 TE Con​​nectivity 解決方案的參考設計。

This segment had adjusted operating margins of 17.3%, and this was up 100 basis points over last year despite the decline in sales in the second quarter. Our teams are executing extremely well, and we continue to expect to maintain high-teens margin in this segment as we move through the year while supporting investments for growth. As volumes increase over time, we expect to achieve our long-term margin target for the segment of approximately 20%.

該部門調整後的營業利潤率為 17.3%，儘管第二季銷售額下降，但仍比去年增長了 100 個基點。我們的團隊執行得非常好，我們繼續期望在這一年中保持該領域的高雙位數利潤率，同時支持成長投資。隨著銷量隨著時間的推移而增加，我們預計該領域將實現約 20% 的長期利潤率目標。

Now with that as a segment overview, let me hand it over to Heath, who will get into more details on the financials and our expectations going forward.

現在，作為部門概述，讓我將其交給 Heath，他將詳細介紹財務狀況和我們未來的預期。

Thank you, Terrence, and good morning, everyone.

謝謝你，特倫斯，大家早安。

Please turn to Slide 8 where I will provide more details on the second quarter financials. Adjusted operating income was $735 million with an adjusted operating margin of 18.5%. GAAP operating income was $692 million and included $3 million of acquisition-related charges and $40 million of restructuring and other charges. For the full year, our expectations are unchanged, and we continue to expect fiscal 2024 restructuring charges to be approximately $100 million.

請參閱投影片 8，我將在其中提供有關第二季財務狀況的更多詳細資訊。調整後營業收入為 7.35 億美元，調整後營業利益率為 18.5%。 GAAP 營業收入為 6.92 億美元，其中包括 300 萬美元的收購相關費用以及 4,000 萬美元的重組和其他費用。對於全年，我們的預期保持不變，我們繼續預期 2024 財年的重組費用約為 1 億美元。

Adjusted EPS was $1.86, and GAAP EPS was $1.75 and included restructuring and acquisition and other charges of $0.11. The adjusted effective tax rate was 21% in Q2. And for the third quarter and the remainder of the year, we expect our adjusted effective tax rate to be approximately 22%. Importantly, as always, we continue to expect our cash tax rate to stay well below our adjusted ETR for the full year.

調整後每股收益為 1.86 美元，公認會計原則每股收益為 1.75 美元，其中包括重組和收購及其他費用 0.11 美元。第二季調整後的有效稅率為21%。對於第三季和今年剩餘時間，我們預計調整後的有效稅率約為 22%。重要的是，與往常一樣，我們繼續預計全年現金稅率將遠低於調整後的 ETR。

Now if you turn to Slide 9. Sales of $3.97 billion were down 5% on a reported basis and down 3% on an organic basis year-over-year, which is as expected. Sequentially, we saw 3% organic growth in sales. Adjusted operating margins were 18.5% in the second quarter, expanding 250 basis points year-over-year, and this was driven by margin expansion in all 3 segments on a year-over-year basis.

現在，如果您翻到幻燈片 9，銷售額為 39.7 億美元，按報告數據計算，同比下降 5%，按有機基礎計算，同比下降 3%，這符合預期。隨後，我們的銷售額實現了 3% 的有機成長。第二季調整後營業利潤率為 18.5%，年成長 250 個基點，這是由所有 3 個部門的利潤率同比增長推動的。

We have been focused on executing on a number of operational levers this year that are not volume-related, and this has enabled strong margin expansion despite the low growth environment that we are dealing with. Adjusted earnings per share were $1.86, up 13% year-over-year, driven by the strong margin expansion.

今年我們一直專注於執行一些與銷售量無關的營運槓桿，儘管我們面臨低成長環境，但這仍然實現了利潤率的強勁成長。受利潤率強勁擴張的推動，調整後每股收益為 1.86 美元，年增 13%。

Turning to cash flow. Cash from operations was $710 million, and free cash flow was $543 million in the second quarter. Through the first half of our fiscal year, free cash flow was $1.1 billion, which is up 32% year-over-year. Our long-term capital strategy remains unchanged, which is to return approximately 2/3 of free cash flow to shareholders and use 1/3 for bolt-on acquisitions over time. As mentioned earlier, we expect our free cash flow conversion to exceed 100% again this year.

轉向現金流。第二季營運現金為 7.1 億美元，自由現金流為 5.43 億美元。整個財年上半年，自由現金流為 11 億美元，年增 32%。我們的長期資本策略保持不變，即向股東返還約 2/3 的自由現金流，並隨著時間的推移將 1/3 用於補強收購。如前所述，我們預計今年自由現金流轉換率將再次超過 100%。

Now before I turn it over to questions, let me reinforce some of the key points that we are excited about and share how we are thinking about our performance in the current macro environment. We are delivering margin expansion, EPS growth, driven by strong execution on operational levers. At the same time, we are investing to support future growth in markets with strong secular drivers, including next-generation automotive, renewables and the artificial intelligence applications that Terrence just discussed.

現在，在我提出問題之前，讓我先強調一下我們感到興奮的一些關鍵點，並分享我們如何看待當前宏觀環境下的表現。在營運槓桿的強勁執行力的推動下，我們正在實現利潤率擴張和每股盈餘成長。同時，我們正在投資支持具有強大長期驅動力的市場的未來成長，包括下一代汽車、再生能源和泰倫斯剛才討論的人工智慧應用。

We are seeing an improvement in order patterns and sequential orders growth in all of our segments, indicating stability in most of the markets we serve and giving us confidence in future growth. Our Communications segment is returning to growth in the third quarter, which reflects both the normalization of supply chains as well as our momentum in high-speed data center applications.

我們看到所有細分市場的訂單模式和連續訂單成長均有所改善，這表明我們服務的大多數市場保持穩定，並使我們對未來的成長充滿信心。我們的通訊部門在第三季恢復成長，這不僅反映了供應鏈的正常化，也反映了我們在高速資料中心應用方面的動能。

And finally, we are demonstrating our strong cash generation model with a balanced deployment of capital. So we remain very excited about the opportunities we have ahead of us to drive value creation for all stakeholders.

最後，我們展示了我們強大的現金產生模型和均衡的資本配置。因此，我們對眼前的機會感到非常興奮，可以為所有利害關係人創造價值。

With that, let's now open this call up to questions.

現在，讓我們開始本次電話會議，回答問題。

Dennis, can you please give the instructions for the Q&A session?

丹尼斯，您能指導一下問答環節嗎？

(Operator Instructions) Your first question comes from the line of Mark Delaney with Goldman Sachs.

（操作員說明）您的第一個問題來自高盛的馬克·德萊尼（Mark Delaney）。

I'm hoping to better understand the more constructive comments you made on auto, especially as EV industry growth has decelerated and several traditional Western auto OEMs have announced they're planning to focus more on plug-in hybrids at least in the near to intermediate term and shift toward BEVs more slowly than they previously targeted. Could you help better contextualize what underpins TE's more positive view on auto and to what extent auto can keep growing? Or might it be impacted by certain customers needing to take down inventory as they adjust their product mix plans?

我希望能更好地理解您對汽車提出的更具建設性的評論，特別是在電動汽車行業增長放緩以及幾家傳統西方汽車原始設備製造商宣布他們計劃至少在近中期更多地關注插電式混合動力車的情況下短期內向純電動車的轉變速度比他們之前的目標要慢。您能否幫助我們更好地了解 TE 對汽車持更積極看法的基礎以及汽車可以在多大程度上保持增長？或者，它是否會受到某些客戶在調整產品組合計劃時需要減少庫存的影響？

No, thanks, Mark, and I appreciate the question. And I know one of the things that's important when we do this is I always have to remind everybody our great global position, and we got to keep that in front of us.

不，謝謝，馬克，我很欣賞這個問題。我知道，當我們這樣做時，重要的一件事是我必須始終提醒每個人我們偉大的全球地位，我們必須將這一點放在我們面前。

So first of all, on auto production, what's interesting, even though there's been a lot of moves by various players around the world, if we went back to you back in October and said, where do we think auto production would be, we still think it's slightly up this year. It's going to be around 86 million vehicles made on the planet this year. And we have seen increases in Asia production, both in China as well as outside of China, because we do have a strong position in Japan and Korea as well that have offset some of the weakness that you've seen here in North America as you have some of these consumer preference shift.

首先，在汽車生產方面，有趣的是，儘管世界各地的不同參與者採取了很多舉措，但如果我們在 10 月回過頭來說，我們認為汽車生產會在哪裡，我們仍然會這樣做。略有上升。今年全球汽車產量將達到約 8,600 萬輛。我們看到亞洲產量有所增加，無論是在中國還是在中國以外，因為我們在日本和韓國也擁有強大的地位，這抵消了您在北美看到的一些弱點。轉變。

The other thing that is when you think about what we've always called the e-mobility category, which includes hybrids, plug-in hybrids and EVs because we get very nice content uplift on all of them, we expect it to be about 25 million units this year still. And versus where we were earlier in the year, that's probably only off about 300,000 units when you look at it at a global basis. So net-net, on a global basis, EV production and adoption is still happening. And EVs and plug-in hybrids and hybrids are about 30% of all the vehicles on the planet today that are coming out. And I said it on the call, both categories are going to grow about 24% this year.

另一件事是，當你想到我們一直所說的電動車類別時，其中包括混合動力車、插電式混合動力車和電動車，因為我們在所有這些類別上都獲得了非常好的內容提升，我們預計約為25今年依然是萬台。與今年稍早的情況相比，從全球範圍來看，這可能只減少了約 30 萬台。因此，在全球範圍內，電動車的生產和採用仍在發生。電動車、插電式混合動力車和混合動力車約佔當今全球所有汽車的 30%。我在電話會議上說過，今年這兩個類別都將成長約 24%。

Now by region, the trends in China are full steam ahead, EV production, EV adoption across all types, whether it's plug-in hybrids, hybrids, and we have a very strong position there. We've talked to you about what we do with the locals. We have a strong position with the multinationals. And as I said on the call, our content per vehicle, as EV adoption continues in China, is just going up.

現在按地區來看，中國的趨勢是全速前進，電動車的生產、各種類型電動車的採用，無論是插電式混合動力車還是混合動力車，我們在那裡都擁有非常強大的地位。我們已經與您討論了我們對當地人所做的事情。我們在跨國公司中擁有強大的地位。正如我在電話中所說，隨著電動車在中國的不斷普及，我們每輛車的內容正在增加。

In the Western world, you do have the adapting that I talked about, and it's really creating more of a shift from EVs to PHEVs and hybrids. And we got to realize that shift is important for us because that does help as you move from a nice vehicle to any of the EV categories, we get content increase. And all the regions are expected to see double-digit EV growth this year. So while there's been some things that have shifted around, certainly, as people make choices about what models they like versus they don't like, it's really been driving content growth.

在西方世界，你確實有我談到的適應，它確實創造了更多從電動車到插電式混合動力車和混合動力車的轉變。我們意識到這種轉變對我們來說很重要，因為當你從一輛好車轉向任何電動車類別時，這確實有助於我們獲得內容的增加。預計今年所有地區的電動車都將出現兩位數的成長。因此，雖然有些事情發生了變化，但隨著人們選擇自己喜歡和不喜歡的模型，這確實推動了內容的成長。

Now the last thing is we remain to be confident around our 4 to 6 points of outperformance. And we're always going to caution you like we do every call, please don't look at it on a quarter basis because there's always swings that can occur. But we expect content growth to be in that 4 to 6 points. And it's also important to say content in the 4 to 6 points above production, EV is the biggest driver, but it's not the only driver.

現在最後一件事是我們仍然對 4 到 6 點的優異表現充滿信心。我們總是會像每次電話諮詢一樣提醒您，請不要以季度為單位查看，因為總是可能會發生波動。但我們預計內容成長將在 4 到 6 個點之間。同樣重要的是，在產量以上的4至6點內容中，電動車是最大的驅動因素，但它不是唯一的驅動因素。

Electronification of the vehicle, the data -- Ethernet that goes in for autonomy for -- that's unique for software-defined vehicles, that's a driver as well as all the other electronics that go in. So all of them drive the content increase. And while there may be some shifts between EVs and hybrids, the content growth that we get on either of those categories, whether it's 1.5x or 2, are going to drive content growth for us and why we feel so constructive about the 4 to 6 points of outperformance, and we expect we'll be there this year. So I know it's probably more than you wanted, Mark, but I appreciate the question.

車輛的電子化、數據——用於自動駕駛的乙太網路——對於軟體定義的車輛來說是獨一無二的，它是驅動程式以及所有其他電子設備。雖然電動車和混合動力車之間可能存在一些轉變，但我們在這兩個類別中獲得的內容增長，無論是1.5 倍還是2 倍，都將推動我們的內容增長，這也是為什麼我們對4 到6 倍感到如此有建設性表現出色，我們預計今年就能達到這個水準。所以我知道這可能比你想要的要多，馬克，但我很欣賞這個問題。

Your next question comes from the line of Luke Junk with Baird.

你的下一個問題來自盧克·垃圾與貝爾德的對話。

Terrence, hoping you could just double-click on what order [patterns] are telling you right now about market health and especially destocking. I'd be most interested in what it says about the trajectory of Communications from here, especially legacy applications in addition to what you already spoke to with respect to AI as well as we look for that bottom in Industrial Equipment.

泰倫斯，希望您可以雙擊訂單[模式]現在告訴您有關市場健康狀況，尤其是去庫存的信息。我最感興趣的是它對通訊軌蹟的描述，尤其是遺留應用程序，除了您已經談到的關於人工智慧的內容以及我們在工業設備中尋找底部的內容。

Sure. No, thanks, Luke, and I appreciate the question. Yes, as I said in my upfront comments, I can't stress enough, this is the first time in 6 quarters or 1.5 years that we have orders above $4 billion and a book-to-bill above 1. And you see the sequential growth in every segment. And destocking, which we always told you, really was in our Communications segment and our Industrial Equipment segment. I would tell you, in the Communications segment, we don't -- we believe destocking is over.

當然。不，謝謝盧克，我很欣賞這個問題。是的，正如我在前面的評論中所說，我怎麼強調都不為過，這是6 個季度或1.5 年來我們第一次訂單超過40 億美元，訂單出貨比超過1。連續的情況每個細分市場的成長。我們總是告訴你，去庫存確實是在我們的通訊部門和工業設備部門。我想告訴你，在通訊領域，我們沒有——我們相信去庫存已經結束。

Not only from the order activity we see, but I would also say the things where we go through our channel partners, and we've seen orders improve year-over-year there as well as the revenue trends of where they're selling through. So I would say destocking in the Communications segment is over, and you're going to see that segment return to growth next quarter, as I talked about.

不僅從我們看到的訂單活動來看，我還要說一下我們透過通路合作夥伴進行的事情，我們看到那裡的訂單逐年改善，以及他們透過通路合作夥伴銷售的收入趨勢。因此，我想說通訊部門的去庫存已經結束，正如我所說，你將看到該部門在下個季度恢復成長。

The one area that we continue to see destocking is in the Industrial Equipment. I think it was evident in our results and the commentary. And that's going to be with us for a couple more quarters. That started later. We're still seeing areas where I do think we're in a bottoming cycle there, both what we see and what our channel partners see. We're starting to see some lights in China and also the Americas, but there's other areas in that industrial space, and Europe has remained weak. So I do think that's very important to keep in front of us, but I do think there's -- we're starting to see some light at the end of the tunnel.

我們繼續看到庫存減少的一個領域是工業設備。我認為這在我們的結果和評論中很明顯。這種情況還將持續幾個季度。那是後來才開始的。我們仍然看到我認為我們確實處於觸底週期的領域，無論是我們所看到的還是我們通路合作夥伴所看到的。我們開始在中國和美洲看到一些曙光，但該工業領域還有其他領域，而歐洲仍然疲軟。所以我確實認為這一點非常重要，但我確實認為我們開始在隧道盡頭看到一些曙光。

And outside those areas, I think you see stability and growth. And I think those sequential order momentums that we see that you can see on the chart really prove that. And that's what we get excited about that destocking is over. Destocking has masked some of our content growth as we work through it. But I do also think as we work through this year and get to '25, it will be a nice tailwind that that's finally behind us.

在這些領域之外，我認為您會看到穩定和成長。我認為我們在圖表上看到的那些順序動量確實證明了這一點。這就是我們對去庫存結束感到興奮的原因。在我們的工作過程中，去庫存掩蓋了我們的一些內容成長。但我也確實認為，當我們努力度過今年並進入 25 年後，這將是一個很好的順風，它終於在我們身後了。

Your next question is from the line of Amit Daryanani with Evercore Partners.

您的下一個問題來自 Evercore Partners 的 Amit Daryanani。

I guess, Terrence, I'd love to kind of get your perspective, AI is still a very big focus for everyone. You just talked about some fairly strong revenue trajectory as you go forward that you expect to see. Can you maybe spend some time talking to us about what exactly are you really providing when it comes to AI solutions? And any sense on where the opportunities right now across processor companies like NVIDIA versus cloud providers that might be running their own infrastructure? And what does the conversion to revenue look like as you go forward from here?

我想，特倫斯，我很想聽聽你的觀點，人工智慧仍然是每個人的一個非常關注的焦點。您剛才談到了您期望看到的一些相當強勁的收入軌跡。您能否花一些時間與我們談談您在人工智慧解決方案方面到底提供了什麼？與可能運行自己基礎設施的雲端供應商相比，像 NVIDIA 這樣的處理器公司目前的機會在哪裡？從這裡開始，收入轉換會是什麼樣子？

Yes, no, and I made some comments, Amit. So I do appreciate the question. And the one thing that's a little bit different that we talked about today on the prepared comments was we typically always talked to you about design win momentum, and that's continued. But we did give you more highlights about where does revenue go for here. And we told you all year, as we were seeing the ramp in AI, we were going to do about $200 million of revenue this year in AI applications. And certainly, 60% of that would be in the back half. That really hasn't changed.

是的，不，我發表了一些評論，阿米特。所以我很欣賞這個問題。我們今天在準備好的評論中討論的一件事有點不同，我們通常總是與您談論設計獲勝的動力，而且這種情況還在繼續。但我們確實為您提供了更多關於這裡的收入去向的重點內容。我們一整年都告訴過你，隨著我們看到人工智慧的發展，今年我們將在人工智慧應用中實現約 2 億美元的收入。當然，其中 60% 將發生在後半部分。這確實沒有改變。

But when we look at the design momentum that we have and also expectation of what we're hearing from our customers, like I said on the call, we expect that $200 million to essentially double next year to $400 million. And we actually see a path that could get up to $1 billion a year -- a few years after the [math].

但是，當我們審視現有的設計動力以及對客戶回饋的期望時，就像我在電話中所說的那樣，我們預計明年 2 億美元將基本上翻一番，達到 4 億美元。我們實際上看到了一條每年可能達到 10 億美元的路徑——在 [數學] 幾年後。

So we're actually seeing the traction with the design wins, our teams, the investments we're making to ramp it, both from engineering and operations, are in place to drive it. And like you said, when you have to service this area, there's an ecosystem that's here. And that ecosystem, when you look at our engagements, they're with hyperscale customers, some of who are developing their own AI solutions. We also have to work closely with semiconductor companies, including both the processor companies and the other semi players that make acceleration chips and other silicon solutions. So when you look at it, we have to play with everybody in that ecosystem, and our teams are doing a nice job.

因此，我們實際上看到了設計勝利的吸引力，我們的團隊，我們為提升它而進行的投資，無論是來自工程還是運營，都已經到位來推動它。就像你說的，當你必須為這個領域提供服務時，這裡就有一個生態系統。在這個生態系統中，當你查看我們的合作時，你會發現他們與超大規模客戶合作，其中一些客戶正在開發自己的人工智慧解決方案。我們還必須與半導體公司密切合作，包括處理器公司和其他製造加速晶片和其他矽解決方案的半導體公司。因此，當你看到它時，我們必須與該生態系統中的每個人一起合作，並且我們的團隊做得很好。

And then as important is as you work with them, how do you get on reference designs that then are really ready-to-deploy offerings that do allow further cloud customer deployments. And our sales are across the entire ecosystem, it's not with one. So I like the breadth that we have, and that's really driving the momentum that we have.

同樣重要的是，當您與他們合作時，如何獲得參考設計，這些參考設計才是真正準備好部署的產品，從而允許進一步的雲端客戶部署。我們的銷售遍及整個生態系統，而不是單一的。所以我喜歡我們所擁有的廣度，這確實推動了我們的動力。

And from a product perspective, where you start at, it starts with the socket that's right up against the GPU. You can have things that are on the board. And then you also get into things that are really a cable backplane where you have things that are very important to make sure you don't get the latency and you keep the high speed going to really make sure that cluster can really crack at the speeds they need to, to do the [LLMs].

從產品的角度來看，首先是從緊鄰 GPU 的插槽開始。你可以擁有板上的東西。然後，您還需要了解真正的電纜背板，其中有一些非常重要的東西，可以確保您不會出現延遲，並保持高速，以真正確保集群能夠真正以這樣的速度破解。 ]。

So net-net, it's pretty broad in the products we play. And it's just really, in many cases, what we did on the cloud moving up to the next level of performance in this application.

因此，網路網路在我們所玩的產品中非常廣泛。在很多情況下，我們在雲端上所做的事情確實使該應用程式的效能提升到了一個新的水平。

Your next question is from the line of Wamsi Mohan with Bank of America.

您的下一個問題來自美國銀行的瓦姆西·莫漢 (Wamsi Mohan)。

Terrence, I appreciate all the comments here on the prior question around AI. If I could just ask a quick clarification on that. How are you thinking about your share in these high-speed, low-latency applications?

Terrence，我感謝這裡關於人工智慧的先前問題的所有評論。如果我能快速澄清一下就好了。您如何看待您在這些高速、低延遲應用程式中的份額？

And for my question, I was wondering if you could comment a little bit beyond fiscal '24. It seems like destocking is coming to an end. Your orders are bouncing back a fair amount over here, and you've mentioned stability in some of the end markets as well. Any early thoughts on how fiscal '25 is shaping up from a growth and margin perspective?

對於我的問題，我想知道您是否可以在 24 財年之後發表一些評論。看來去庫存即將結束。你們的訂單在這裡反彈了相當多的量，而且你們也提到了一些終端市場的穩定性。從成長和利潤的角度來看，您對 25 財年的發展有何早期想法？

Yes. So when you think about share in the AI application, it would be similar to the share we had in cloud applications. So I think when you look at that, and we talked about that a lot, the momentum we had when we went through the cloud during COVID and the momentum we had across a broad set of customers, I think you can expect similar share-type thoughts on that for the AI applications and once again being broad.

是的。因此，當你考慮人工智慧應用程式中的份額時，它會類似於我們在雲端應用程式中的份額。因此，我認為當你看到這一點時，我們談論了很多，在新冠疫情期間我們透過雲端運算所獲得的動力，以及我們在廣泛的客戶群中所獲得的動力，我認為你可以期待類似的股票類型對人工智慧應用的思考，再次變得廣泛。

When you look at 2025, I guess the first thing is it will be nice not to talk about destocking. So that has been a headwind. I know we're not the only one that dealt with it. But that will be something that turns, and you're starting to see it in CS, and that will help IS. So I do think that will turn to a headwind to be -- honestly, to a tailwind as we get rid of that. And what's nice is we're going to start seeing that in Communications already here later this year. And I do think we have to wait towards the end of our fiscal year to get there with the Industrial Equipment business.

當你展望 2025 年時，我想第一件事是最好不要談論去庫存。所以這是一個逆風。我知道我們不是唯一處理這個問題的人。但這將會發生轉變，你開始在CS中看到它，這將有助於IS。所以我確實認為，當我們擺脫這個問題時，這將變成逆風——老實說，變成順風。令人高興的是，我們將在今年稍後開始在通訊領域看到這一點。我確實認為我們必須等到本財年結束時才能實現工業設備業務的目標。

The other thing as we look at 2025, there's going to be -- if you just start with Transportation, you're going to continue to have electric vehicles, the broad category that we put everything in, continue to grow in the world. And I think you can continue to look at 4% to 6% growth on top of that. I wouldn't say we view it's going to be auto production is going to boom in '25, but I think you're going to continue to see an area where auto is below peak where we are today. And then we're going to get the content benefit on top of it that I think we've proven to you. The AI element is a big driver as we go into next year. So we quantified that for you.

我們展望 2025 年的另一件事是，如果你從交通運輸開始，電動車將繼續在世界各地成長，電動車是我們投入一切的廣泛類別。我認為在此基礎上你可以繼續看到 4% 到 6% 的成長。我不會說我們認為汽車生產將在 25 年蓬勃發展，但我認為您將繼續看到汽車產量低於我們今天所處的峰值的區域。然後我們將獲得除此之外的內容優勢，我想我們已經向你們證明了這一點。進入明年，人工智慧元素將是一個重要的驅動力。所以我們為您量化了這一點。

And then the other area that I just think has been masked a little bit by what's been going on in Industrial Equipment is, remember, our 3 businesses that are in Industrial, they continue to have growth momentum, whether it's renewables, whether it's what we're doing in medical around interventional procedures, whether it is the recovery in commercial aerospace as well as what's going on in defense. So those types of growth that we're seeing this year, we do think they're going to remain in the growth into '25. So I do think '25 does set up nicely.

然後，我認為工業設備領域發生的事情有點掩蓋了另一個領域，請記住，我們在工業領域的 3 個業務，它們繼續保持增長勢頭，無論是可再生能源，還是我們的業務我們正在圍繞介入手術進行醫療工作，無論是商業航空航太領域的恢復或國防領域的進展。因此，我們今年看到的這些類型的增長，我們確實認為它們將在 25 世紀保持增長。所以我確實認為'25 確實設置得很好。

Heath, I don't know if you want to talk from a margin perspective at all.

Heath，我不知道你是否想從利潤的角度來談談。

Sure. Wamsi, we appreciate the question. Obviously, we're in the early stages, we're not ready to guide for our FY '25, which starts October 1. But I do feel good about where -- the progress that we've made on margins. We've talked a lot to this audience about our target margins, which we really look at it by segment. The Transportation margins, target margin of 20%, we got there a little sooner than we even, internally, we were expecting. The price actions have been effective and they've been sticky. The footprint consolidation work that we've done and then we've exited some low-margin product lines, and the health of that business is very strong.

當然。瓦姆西，我們感謝這個問題。顯然，我們正處於早期階段，我們還沒有準備好為 10 月 1 日開始的 25 財年提供指導。我們已經與觀眾討論了很多關於我們的目標利潤率的問題，我們確實是按細分市場來看待的。運輸利潤率，目標利潤率為 20%，我們甚至比我們內部預期的要早一點。價格行動是有效的並且具有黏性。我們已經完成了足跡整合工作，然後我們退出了一些低利潤的產品線，並且業務的健康狀況非常強勁。

The auto side of that, that is driving most of that. But even our Commercial Transportation business within that, which is, as you know, a high-margin business, is holding its head even in a negative growth environment. So we feel good about where we are achieving in FY '24 and where our jumping off point is for end of '25.

汽車方面是其中的主要推動者。但即使是我們的商業運輸業務，正如你所知，這是一項高利潤業務，即使在負成長的環境下也能保持領先地位。因此，我們對 24 財年所取得的成就以及 25 年底的起點感到滿意。

Communications is really -- the margin side of Communications is really a volume story. And again, if you had asked me 6 or 9 months ago where we'd be running margin-wise at roughly $440 million of quarterly revenue, I would tell you we'd probably be in the mid-teens. And as I sit here today, we've been consistently in the high teens this year. So we've effectively raised the floor, and our team has done a nice job within that segment of raising the floor so we get to a more of a high-teen type of look.

通信的利潤方面確實是一個巨大的故事。再說一次，如果你在 6 或 9 個月前問我，我們的季度收入約為 4.4 億美元，利潤率會達到多少，我會告訴你，我們可能會在十幾歲左右。當我今天坐在這裡時，我們今年一直處於青少年時期。所以我們有效地提高了地板，我們的團隊在提高地板的部分做得很好，所以我們得到了更多的青少年類型的外觀。

And once we budge up over the $2 billion annual revenue rate for that segment, I think we're going to be pushing towards that target margin of 20% for the segment. So we feel good as we think about that. And as a reminder, Terrence alluded to this, we are hiring to support some of the high-growth areas, and that's embedded in our run rate. We're not going to call that out as a headwind to us, but we're not starving these businesses, and that's been an exciting area to see.

一旦我們將該細分市場的年收入提高到 20 億美元以上，我認為我們將努力實現該細分市場 20% 的目標利潤率。所以當我們想到這一點時我們感覺很好。作為提醒，特倫斯提到了這一點，我們正在招募人員來支援一些高成長領域，這已包含在我們的運行率中。我們不會說這對我們來說是一種逆風，但我們不會讓這些企業挨餓，這是一個令人興奮的領域。

The Industrial business, we're hovering in the mid-teens. I expect improvement of significance next year as we go in, but a lot of that is tied to the destocking within the Industrial Equipment business going away. And Terrence has talked a fair amount already on this call about the time frame of that towards the end of fiscal '24. So I do think there's good opportunity as we go into '25. The other 3 business units within the Industrial segment have been performing well, but it's hard to make up for the drag on the Industrial Equipment business that's been down double digits this year.

工業業務，我們徘徊在十幾歲左右。我預計明年我們進入時會出現顯著的改善，但這很大程度上與工業設備業務中去庫存的消失有關。特倫斯在這次電話會議上已經就 24 財年末的時間框架談了很多。所以我確實認為當我們進入 25 世紀時會有很好的機會。工業領域的其他3個業務部門表現良好，但很難彌補工業設備業務今年兩位數下降的拖累。

So if you add all that all up, we're going to exit this year in [18] and change of operating margins up a couple of hundred basis points year-over-year. And we expect to be able to start making normalized improvement on that as we move forward. We talk to The Street about in our operating model of somewhere between 30 and 80 basis points of margin improvement each year. Certainly, we feel good about that as we start planning for FY '25.

因此，如果將所有這些加起來，我們將在今年退出[18]，並且營業利潤率的變化將同比上升幾百個基點。我們希望隨著我們的前進，能夠開始對此進行標準化改進。我們與華爾街談論我們的營運模式每年利潤率提高 30 到 80 個基點。當然，當我們開始規劃 25 財年時，我們對此感到滿意。

Your next question is from the line of Samik Chatterjee with JPMorgan.

您的下一個問題來自摩根大通的 Samik Chatterjee。

I'll ask on Communications, if you don't mind. You mentioned the capacity investments you're making in the Communications segment, particularly around the AI demand you're seeing. If you can sort of give us some more color about what's the typical lead time between you investing -- starting to invest in capacity now? Is that for revenue in fiscal '25? Or is that sort of beyond fiscal '25? What's the typical lead time between starting the manufacturing and getting back to a revenue point?

如果您不介意的話，我會透過通訊詢問。您提到了您在通訊領域的容量投資，特別是圍繞您所看到的人工智慧需求。您能否給我們更多信息，說明您現在開始投資產能之間的典型交付週期是多少？這是 25 財年的收入嗎？還是這已經超出了 25 財年的範圍？從開始製造到回到收入點之間的典型交貨時間是多少？

And then just a side question in terms of like what do you see customers ask you for in terms of where this manufacturing footprint is? Given the geopolitical situation, is there a preference that customers are expressing about where you invest in capacity, [granted] whether it's the Western world or somewhere else?

然後是一個附帶問題，例如您認為客戶對您的製造足跡有何要求？考慮到地緣政治形勢，客戶是否對您在產能投資方面有偏好（假設）是西方世界還是其他地方？

Thanks, Samik, for the question. A couple of things, I think, that's important. As we've been seeing this, we have been investing, and we've expanded operations in Mexico as well as the Philippines as well as the existing locations we've had. So from that viewpoint, there was existing. And also the sites that we have, I think, position us well for the geopolitical options that some of our customers want to have.

謝謝薩米克提出的問題。我認為有幾件事很重要。正如我們所看到的，我們一直在投資，並擴大了在墨西哥、菲律賓以及現有地點的業務。所以從這個角度來看，存在。我認為，我們擁有的網站也使我們能夠很好地滿足一些客戶想要的地緣政治選擇。

So when you look at that, I wouldn't say this is just starting. These investments, some of those we started to make a few years ago as we were thinking about capacity coming along, and we're going to continue to build on that. And that's for the footprint capacity as well as like Heath said, there's also been engineering capacity and ramping as well, and we'll continue to do with the line of sight of the programs we work on.

所以當你看到這一點時，我不會說這才剛開始。這些投資，其中一些是我們幾年前開始進行的，當時我們正在考慮產能的增加，我們將在此基礎上繼續發展。這就是足跡能力，就像希思所說，還有工程能力和斜坡，我們將繼續關注我們正在進行的專案的視線。

Let's face it, these are programs that we work on with our customers in tandem as they're trying to work their architecture to make sure that the connectivity that's needed works in their applications. So that's one of the real positives that we have working in this ecosystem, and you're going to see us continue to capitalize on it. And like Heath said, it's included in our run rate.

讓我們面對現實吧，這些是我們與客戶共同開發的項目，因為他們正在嘗試調整其架構，以確保所需的連線在其應用程式中正常運作。因此，這是我們在這個生態系統中工作的真正積極因素之一，您將看到我們繼續利用它。正如希思所說，它包含在我們的運行率中。

Your next question is from the line of Joe Giordano with TD Cowen.

您的下一個問題來自 Joe Giordano 和 TD Cowen。

So on the AI side, as you kind of build out and invest to support the growth plans of your customers in this space, how do you weigh -- like obviously, very robust demand and on the near term with like, can we -- is this -- are these growth outlooks on a multiyear period even feasible? Like can the grid handle building all these things? Like how do you weigh what you need to invest in now because of what your customers are saying versus like your view on is this even achievable for a market over like a short, couple-of-year period?

因此，在人工智慧方面，當你在這個領域進行建立和投資以支持客戶的成長計劃時，你如何權衡——顯然，非常強勁的需求，在短期內，我們可以——這些多年增長前景是否可行？就像網格可以處理所有這些東西的建造嗎？就像你如何權衡你現在需要投資什麼，因為你的客戶在說什麼，以及你的觀點，這對於一個市場來說在短短幾年內是否可以實現？

When we work here, Joe, we work with our customers on the programs that they're coming out with. And then on the next generation, I would tell you, we do work with our customers on their understanding of that market outlook. But honestly, we're focused on nailing the solution with our customers on what the technical requirements they have. So I would tell you, that's what we focus on. That's the way we invest as we work with our customers.

喬，當我們在這裡工作時，我們會與客戶一起開發他們推出的程式。然後，在下一代方面，我會告訴你，我們確實與客戶合作，了解他們對市場前景的理解。但老實說，我們專注於根據客戶的技術要求與他們共同確定解決方案。所以我想告訴你，這就是我們關注的重點。這就是我們與客戶合作時的投資方式。

So from that viewpoint, I think that's always been our mindset. And it's one of the nice things about our model that we get the benefit of working with our customers as they understand the opportunity and the ramps that they expect to hit and how do we need to support that.

所以從這個角度來看，我認為這一直是我們的心態。我們的模式的好處之一是，我們可以從與客戶的合作中獲益，因為他們了解機會和他們期望達到的目標，以及我們需要如何提供支援。

Your next question is from the line of Asiya Merchant with Citigroup.

您的下一個問題來自花旗集團的 Asiya Merchant。

Just if you could drill down a little bit on pricing. I think comments in the past have talked about maybe normalization of pricing and especially as we look at auto production moving towards, at least this year, being a little bit more weighted towards Asia versus North America and Western Europe. How do you guys think about pricing and the margin impact from pricing normalizing, say, as we go into fiscal '25?

只要你能深入了解定價就好了。我認為過去的評論已經談到了定價可能正常化，特別是當我們看到汽車生產至少在今年朝著亞洲而非北美和西歐的方向發展時。你們如何看待定價以及定價正常化對利潤率的影響，比如說，當我們進入 25 財年？

No, sure. I think when you look at pricing, first off, and you see it in the margin this year, we recovered finally the inflation that we had during the mega wave of inflation. And we caught up on that. And our approach always was, was we were covering cost with our customers. When you still look at this year, nothing has changed with what we told you before, we expect pricing to be neutral this year at the TE level.

不確定。我認為，當你首先看定價時，你會在今年的利潤率中看到它，我們終於恢復了通貨膨脹浪潮期間的通貨膨脹。我們趕上了這一點。我們的方法始終是，我們與客戶一起承擔成本。當你仍然看看今年時，我們之前告訴你的沒有任何變化，我們預計今年 TE 級別的定價將保持中性。

So yes, we are doing targeted price increases where we have to, where we continue to have material inflation on certain metals. Certainly, we're doing things to make sure where we can be competitive. And I don't think you assume that margins go down on a different pricing environment. So I think you sit there as we look forward, a big element of where pricing goes is going to be around where the material environment is, where's copper, gold, resin trading, the input costs that were the things that we recovered, and they will be the bigger driver of where pricing goes from here.

所以，是的，我們正在有針對性地提高價格，我們必須這麼做，某些金屬繼續出現實質通膨。當然，我們正在做一些事情來確保我們能夠在哪些方面具有競爭力。我認為你不會認為不同的定價環境下利潤率會下降。所以我認為，當我們展望未來時，定價的一個重要因素將圍繞在物質環境，銅、黃金、樹脂交易在哪裡，我們回收的投入成本，以及它們將成為價格走勢的更大驅動力。

Your next question is from the line of Saree Boroditsky with Jefferies.

你的下一個問題來自 Saree Boroditsky 和 ​​Jefferies。

You talked a lot about maybe a line of sight to the end of Industrial Equipment destocking by year-end. Could you just talk through the underlying demand environment there? And then how do you think about the tailwind from destocking then as we get into 2025?

您談到了很多關於年底工業設備去庫存結束的願景。能簡單談談那裡的潛在需求環境嗎？那麼，當我們進入 2025 年時，您如何看待去庫存帶來的順風車？

Sure. Thanks, Saree, and welcome to the call. First off, being the demand environment is cloudy because we have had both with -- and in our Industrial Equipment business, just to take a step back and remind everybody, about 50% of our revenue goes through our channel partners and 50% goes directly to the OEMs. So it is an area where channel partners play a bigger role.

當然。謝謝，莎麗，歡迎來電。首先，需求環境陰雲密布，因為我們在工業設備業務中都遇到過這種情況，退後一步提醒大家，我們大約 50% 的收入透過我們的通路合作夥伴，50% 直接進入給原始設備製造商。因此，這是通路合作夥伴發揮更大作用的領域。

I would say when we look at the end-demand environment, there are pockets where you continue to see strength, that wouldn't surprise you, certainly in the process side. But there's other areas that right now, it is still foggy because we have customers that are working off buffer stock that they built up when they were worried about being able to get component supply as well as our channel partners are doing the same.

我想說，當我們審視最終需求環境時，你會在某些地方繼續看到實力，這不會令你感到驚訝，尤其是在流程方面。但目前在其他領域仍然存在迷霧，因為我們的客戶正在消耗他們在擔心能否獲得零件供應時累積的緩衝庫存，而我們的通路合作夥伴也在做同樣的事情。

So right now, we're in the middle of that destock period. But what we are seeing is we're seeing order patterns start to move sideways. They aren't decelerating. We're seeing that both direct and with our channel partners. And we're also seeing certain regions where we see that work-off occurring. So I think what you're going to have probably for the next couple of quarters, we're still going to have those impacts as that works off. And then as we get into '25, you'll actually see that business get back more in line, growing a little bit above the underlying market of factory automation.

所以現在，我們正處於去庫存期間。但我們看到訂單模式開始橫向移動。他們並沒有減速。我們直接看到了這一點，並與我們的通路合作夥伴一起看到了這一點。我們也看到某些地區正在發生這種工作。因此，我認為在接下來的幾個季度中，我們仍然會產生這些影響。然後，當我們進入 25 世紀時，您實際上會看到業務恢復得更穩定，成長略高於工廠自動化的基礎市場。

Your next question is from the line of Steven Fox with Fox Advisors.

您的下一個問題來自福克斯顧問公司的史蒂文·福克斯。

Terrence, I was wondering if you could talk a little bit about how TE Connectivity's products into EVs help on the cost front for your customers? I mean, Tesla, obviously is talking a lot about that lately. And on the alternatives, does it create any kind of competitive risk as some of your customers realize that they really need to get some of these EV prices down in the next couple of years?

Terrence，我想知道您能否談談 TE Con​​nectivity 的電動車產品如何幫助您的客戶降低成本？我的意思是，特斯拉最近顯然在談論這個問題。在替代方案中，當您的一些客戶意識到他們確實需要在未來幾年內降低其中一些電動車的價格時，它是否會產生任何類型的競爭風險？

Well, I do think there's an element that one of the things that we do that even starts before the product is how we work with our customers when they are trying to sit down and do value engineer of how do you get a sub application to a lower cost point. That's very important, Steve, as we move through generations in every part of TE. And that's just not on where does our product cost come in, how do you assemble a car, how do you put the car together, how does that make sure it has the quality?

嗯，我確實認為有一個要素，我們在產品推出之前就開始做的事情之一就是，當客戶試圖坐下來進行價值工程師時，我們如何與他們合作，了解如何將子應用程式獲取到一個子應用程序。史蒂夫，這一點非常重要，因為我們在 TE 的每個部門都經歷了幾代人的努力。這並不涉及我們的產品成本從何而來，如何組裝汽車，如何將汽車組裝在一起，如何確保其品質？

And any time you get into somebody looking at a next generation, and that could be a battery pack, that could be the connectivity on the motor, it could even be a next-generation inlet, so all of those are things that create opportunities where our stickiness and global position play really well. And that we have such a strong position in China, I would tell you, certainly, you have a cost point that is always a better cost point. And how our global teams bring that to other OEMs around the world due to our strong position is something that we get excited about because, I know I say this on this call, probably every other call, automotive is a scale business.

任何時候你看到有人在考慮下一代，這可能是電池組，可能是電機上的連接，甚至可能是下一代入口，所以所有這些都創造了機會我們的粘性和全球地位發揮得非常好。我們在中國擁有如此強大的地位，我當然可以告訴你，你的成本點總是更好的成本點。由於我們的強勢地位，我們的全球團隊如何將這一點帶給世界各地的其他原始設備製造商，這是我們感到興奮的事情，因為我知道我在這次電話會議上這麼說，可能在每次電話會議上都這麼說，汽車是規模化的業務。

And one of the things that is very important is how does EV scale, how do you bring our technology to do it that helps it scale, and that's the opportunity that we've always been excited about with EVs. And having some of the consumer choices that are being made will also allow our customers to get focused to make sure they're making where their platforms go. So net-net, that's what our engineers like to do, improving the innovation they can bring, but also how do you sit there and make sure how we're making it more productive for the world.

非常重要的事情之一是電動車如何擴展，如何利用我們的技術來幫助其擴展，這就是我們一直對電動車感到興奮的機會。消費者所做的一些選擇也將使我們的客戶能夠集中精力，確保他們的平台走向正確的方向。因此，網路網絡，這就是我們的工程師喜歡做的事情，改進他們可以帶來的創新，但也包括你如何坐在那裡，確保我們如何讓世界更有生產力。

Your next question is from the line of Colin Langan with Wells Fargo.

您的下一個問題來自富國銀行的 Colin Langan。

Just want to ask, on the auto side, growth was 1%. I think the target is 4 -- and I think the market is fairly flat in the quarter. The long-term target is 4% to 6% outperformance. Why the underperformance versus the target in the last couple of quarters?

只是想問一下，汽車方面，成長了1%。我認為目標是 4——而且我認為本季市場相當平穩。長期目標是跑贏 4% 至 6%。為什麼過去幾季的業績低於目標？

Twofold. We're probably running about 3 points above production right now. I would say, Colin, in the second quarter, global auto production was negative. So the [reason there], we always tell you, don't look at an individual quarter. Next quarter, I think you're going to see a very nice outperformance. And for the year, we expect to be in the 4% to 6% range. But on any quarter, you get into a lot of little things that some quarters will be above the range. I still feel good about the 4% to 6%, though.

雙重。我們現在的運行速度可能比生產高出約 3 個點。我想說，科林，第二季全球汽車產量為負。因此，我們總是告訴你，[原因]，不要只看單一季度。下個季度，我認為您將看到非常好的表現。對於今年，我們預計將在 4% 至 6% 的範圍內。但在任何季度，你都會遇到很多小事情，有些季度會超出範圍。不過，我仍然對 4% 到 6% 感覺良好。

Your next question is from the line of Christopher Glynn with Oppenheimer.

你的下一個問題來自克里斯多福·格林和奧本海默的對話。

Just wondering if you could talk about the kind of complexion and forward kind of drivers, touch on the mix for the commercial vehicle platform. I know you kind of said kind of similar levels for passenger vehicle would be appropriate way to think about next year. And we can see that, that makes sense. Commercial is a little more disparate and complex. So I wonder if you could elaborate a little bit on how you see that market unfolding as you work through some mixed markets this year.

只是想知道您是否可以談談駕駛員的膚色和前衛類型，以及商用車平台的組合。我知道您說過乘用車的類似水平是考慮明年的適當方式。我們可以看到，這是有道理的。商業則更加分散和複雜。因此，我想知道您是否可以詳細說明一下，當您今年研究一些混合市場時，您如何看待該市場的發展。

Yes. So to your point, I'm going to -- I might go down here a little bit on how we look about the commercial transportation because, obviously, that market has 3 major drivers to it. Certainly, the on-road truck and bus, what's happening in agriculture equipment and also construction equipment, they're the 3 big levers. And when you think about that globally and production and our revenue, about half of our revenue is truck and bus.

是的。因此，就您的觀點而言，我可能會在這裡稍微談談我們對商業運輸的看法，因為顯然，該市場有 3 個主要驅動因素。當然，公路卡車和巴士、農業設備和建築設備正在發生的事情，它們是三大槓桿。當你考慮全球範圍內的生產和我們的收入時，我們大約一半的收入來自卡車和巴士。

What we're seeing on truck and bus right now is Americas and Europe, weak. Actually, China and Asia is recovering. So they were weak last year. So what we're actually seeing is very much a China-positive market that we expect will continue; certainly Western World down. And we even said in the call, we expect next quarter will be down a little bit sequentially due to some of these dynamics.

我們現在看到美洲和歐洲的卡車和巴士表現疲軟。事實上，中國和亞洲正在復甦。所以去年他們很弱。因此，我們實際上看到的是一個對中國有利的市場，我們預計這種情況將會持續下去。肯定西部世界下來了。我們甚至在電話會議中表示，由於其中一些動態，我們預計下個季度的業績將環比略有下降。

On the ag and the construction side around the world, that is slow everywhere around the world. Certainly, you get into financing rates and things like that, that's a little bit different. And we expect that, that will run through this year. And we are thinking that early next year, we'll get into a more constructive environment than we're in right now. But right now, we think, if you take all of them together, the global market is probably a minus 5% this year, plus or minus a little, and we would think that will get more constructive into '25.

在世界各地的農業和建築方面，世界各地的發展都很緩慢。當然，當你涉及融資利率之類的事情時，這有點不同。我們預計這將貫穿今年。我們認為，明年初，我們將進入一個比現在更具建設性的環境。但現在，我們認為，如果把所有這些因素加在一起，今年全球市場可能會出現負 5% 的情況，上下浮動一點，我們認為這將在 25 年變得更具建設性。

Your next question is from the line of Matt Sheerin with Stifel.

您的下一個問題來自 Matt Sheerin 和 Stifel。

I had a question, Terrence, on the energy markets within your Industrial group. You've had strong growth there over the last few quarters, but it looks like it slowed in the March quarter, and you're hearing of some pockets of weakness from other parts of the supply chain. What's your outlook there, both near term and in terms of long-term position?

特倫斯，我有一個關於貴公司工業集團內能源市場的問題。在過去的幾個季度中，該地區的成長強勁，但看起來在三月份的季度有所放緩，並且您聽說供應鏈其他部分出現了一些疲軟的情況。您對那裡的近期和長期前景有何看法？

Yes, no, sure. Thanks, Matt. And on energy, what I would say is we're still very constructive on it. I think what you see in our results here is we continue to see the U.S. and Americas very strong. We also see global renewables where we play, and we do utility scale renewables, we do not do residential renewables, we see that strong.

是的，不，當然。謝謝，馬特。在能源方面，我想說的是我們仍然非常有建設性。我認為您從我們的結果中看到的是，我們仍然看到美國和美洲非常強大。我們也看到我們所參與的全球再生能源，我們從事公用事業規模的可再生能源，我們不從事住宅再生能源，我們看到了這一點。

The one pocket where I say we see a little bit of softness is around the utilities in Europe. I do think that's an element of the business that I talked about on my prepared comments that we've been a little bit of where I think utilities are bringing down inventory a little bit. But certainly, with the grid maintenance that everybody is investing in around the world, I think that will return to growth. So we're still constructive on global energy. And our business is very much -- Europe and the United States are the bigger elements of where we play.

我說我們看到一點疲軟的一個領域是歐洲的公用事業。我確實認為這是我在準備好的評論中談到的業務要素，我認為公用事業公司正在稍微降低庫存。但可以肯定的是，隨著世界各地每個人都在投資電網維護，我認為這將恢復成長。因此，我們對全球能源仍持建設性態度。我們的業務非常廣泛—歐洲和美國是我們業務的重要組成部分。

Your next question is from the line of Shreyas Patil with Wolfe Research.

您的下一個問題來自 Wolfe Research 的 Shreyas Patil。

As we look out past this year and we think about some of the growth drivers in electrification, AI renewables, you've also got typical recoveries in parts of communication and eventually industrial equipment, how do we think about the sustained organic growth for TE overall? In the past, you've talked about 4% to 6% organic growth over time. I'm just curious how to think about what the reasonable framework for the company should be at this point.

展望今年，我們思考電氣化、人工智慧再生能源領域的一些成長驅動因素，通訊領域以及最終工業設備領域也出現了典型的復甦，我們如何看待 TE 整體的持續有機成長？過去，您曾談到隨著時間的推移有機增長 4% 到 6%。我只是好奇現在如何思考公司的合理框架應該是什麼。

I still think that's the right way to think about it. Certainly, we're going to have cycles. You take a year like this year where we are more flattish than growing at the 4% to 6%, but there will be areas, exactly around the point you made, where you could have some destocking or type effects that may be a headwind 1 year that will come back and be above that in the future. But I do think the 4% to 6% is the right way to think about when we think about the portfolio that's constructive.

我仍然認為這是正確的思考方式。當然，我們會有周期。像今年這樣的一年，我們的成長比4% 到6% 的成長更加平淡，但在某些領域，恰好在你提出的點附近，你可能會出現一些去庫存或類型效應，這可能是逆風1未來一年將會回來並高於這一年。但我確實認為，當我們考慮建設性的投資組合時，4% 到 6% 是正確的思考方式。

Today's final question will come from the line of William Stein with Truist Securities.

今天的最後一個問題將來自 Truist Securities 的 William Stein。

I'm going to ask yet another question about AI. Terrence, my industry checks reflect that there's really about 3 companies that have meaningful content here, and TE is 1 of those 3. There's a couple or 2 others. Can you talk about the competitive dynamics among these 3, maybe your defensibility and your opportunity to push into their spaces? And also what makes the 3 of you more capable than others that sort of protects -- that maybe protect you against new entrants into this very attractive category?

我要問另一個關於人工智慧的問題。 Terrence，我的產業調查顯示，實際上大約有 3 家公司在這裡擁有有意義的內容，而 TE 是這 3 家公司中的一家。您能談談這三者之間的競爭動態嗎？是什麼讓你們三個人比其他人更有能力提供保護——也許可以保護你們免受新進入者進入這個非常有吸引力的類別的影響？

No, thanks, Will. So first off being I think there's an element here when you deal with high speed, the 3 of us all have a very good capability. And when you sit there, we're all different. I mean some of us have different scale than others, but I do think that is the uniqueness. When you're getting to the speed levels of where these chips are going to, GPUs are going to, TPUs are going to, you're dealing with speeds that are very unique. That is a very technical innovation that I think we all do well.

不，謝謝，威爾。首先，我認為當你處理高速時，這裡有一個因素，我們三個人都有很好的能力。當你坐在那裡時，我們都是不同的。我的意思是，我們中的一些人的規模與其他人不同，但我確實認為這就是獨特之處。當您達到這些晶片、GPU、TPU 的速度水平時，您將面臨非常獨特的速度。這是一項非常技術性的創新，我認為我們都做得很好。

And so I think it is a competitive space between us. I also think that you continually move up the technology curve. And you also have ramps that our customers expect to bring them to life for all, very important to our customers. And that's why we even said earlier to the question that I answered, I expect our share to be similar to what it was in the cloud.

所以我認為這是我們之間的競爭空間。我也認為你會不斷提昇技術曲線。我們的客戶也希望為所有人帶來坡道，這對我們的客戶來說非常重要。這就是為什麼我們之前對我回答的問題說過，我希望我們的份額與雲端中的份額相似。

So I think it's very important how we make sure what we do in the connectivity space, really make sure we enable the AI path because we do play an important role in it to really make sure it comes to life. And that's what we get excited about, Will. So it's a great opportunity we have. Certainly, it's a great opportunity for our industry to capitalize on as well.

因此，我認為我們如何確保我們在連接領域所做的事情非常重要，真正確保我們啟用人工智慧路徑，因為我們確實在其中發揮著重要作用，以真正確保它成為現實。這就是我們感到興奮的地方，威爾。所以這是我們的一個很好的機會。當然，這對我們的行業來說也是一個很好的機會。

Okay. Thank you, Will. I'd like to thank everybody for joining us this morning on the call. If you have any additional questions, please contact Investor Relations at TE. Thanks again, and have a nice day.

好的。謝謝你，威爾。我要感謝大家今天早上加入我們的電話會議。如果您有任何其他問題，請聯絡 TE 的投資者關係部門。再次感謝，祝你有美好的一天。

Today's conference call will be available for replay beginning at 11:30 a.m. Eastern time today, April 24, on the Investor Relations portion of TE Connectivity's website. That will conclude the conference for today.

今天的電話會議將於美國東部時間 4 月 24 日上午 11:30 開始在 TE Con​​nectivity 網站的投資者關係部分重播。今天的會議到此結束。