美國西屋制動公司 (WAB) 2022 Q4 法說會逐字稿

Good day, and welcome to the Wabtec Fourth Quarter 2022 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Kristine Kubacki, Vice President of Investor Relations. Please go ahead.

美好的一天，歡迎來到 Wabtec 2022 年第四季度收益電話會議。 （操作員說明）請注意，正在記錄此事件。我現在想將會議轉交給投資者關係副總裁 Kristine Kubacki。請繼續。

Thank you, operator. Good morning, everyone. And welcome to Wabtec's Fourth Quarter 2022 Earnings Call. With us today are President and CEO, Rafael Santana; CFO, John Olin; and Senior Vice President of Finance, John Mastalerz. Today's slide presentation, along with our earnings release and financial disclosures, were posted on our website earlier today and can be accessed on the Investor Relations tab on wabteccorp.com.

謝謝你，運營商。大家，早安。歡迎來到 Wabtec 的 2022 年第四季度財報電話會議。今天和我們在一起的是總裁兼首席執行官 Rafael Santana；首席財務官約翰·奧林；財務高級副總裁 John Mastalerz。今天的幻燈片演示以及我們的收益發布和財務披露已於今天早些時候發佈在我們的網站上，可以在 wabteccorp.com 的“投資者關係”選項卡上訪問。

Some statements we're making are forward-looking and based on our best view of the world and our business today. For more detailed risks, uncertainties and assumptions relating to our forward-looking statements, please see the disclosures in our earnings release and presentation. We will also discuss non-GAAP financial metrics and encourage you to read our disclosures and reconciliation tables carefully as you consider these metrics. I will now turn the call over to Rafael.

我們所做的一些聲明是前瞻性的，是基於我們對當今世界和我們業務的最佳看法。有關與我們的前瞻性陳述相關的更詳細的風險、不確定性和假設，請參閱我們的收益發布和演示文稿中的披露。我們還將討論非 GAAP 財務指標，並鼓勵您在考慮這些指標時仔細閱讀我們的披露和調節表。我現在將把電話轉給拉斐爾。

Thanks, Kristine. And good morning, everyone. Let's move to Slide 4. I I'll start with an update on our business, my perspectives in the quarter, our progress against our long-term value creation framework, and then John will cover the financials. We delivered a strong fourth quarter which is evidenced by strong sales growth, an increase in adjusted earnings per share.

謝謝，克里斯汀。大家早上好。讓我們轉到幻燈片 4。我將首先介紹我們的業務更新、我對本季度的看法、我們在長期價值創造框架方面取得的進展，然後約翰將介紹財務狀況。我們第四季度表現強勁，銷售增長強勁，調整後每股收益增加就是明證。

We achieved this despite significant headwinds, including a volatile macro environment, supply chain disruptions and negative FX. Sales were roughly $2.3 billion, which was up 11% versus prior year. Revenue was driven by strong performance across the Freight segment, but partially offset by unfavorable FX. Total cash flow from operations was $410 million, which brings year-to-date cash flow to over $1 billion achieving a full year cash conversion rate of over 90%. Overall, our financial position remains strong. We continue to allocate capital to maximize shareholder returns by investing for future growth executing on the strategic M&A and returning cash to shareholders.

儘管遇到了巨大的阻力，包括動蕩的宏觀環境、供應鏈中斷和不利的外匯，我們還是實現了這一目標。銷售額約為 23 億美元，比上年增長 11%。收入是由貨運部門的強勁表現推動的，但部分被不利的外匯所抵消。運營產生的總現金流量為 4.1 億美元，使年初至今的現金流量超過 10 億美元，實現了超過 90% 的全年現金轉換率。總體而言，我們的財務狀況依然強勁。我們繼續分配資本，通過執行戰略併購和向股東返還現金來投資未來增長，從而實現股東回報最大化。

Total multiyear backlog was $22.4 billion, up $272 million year-over-year and excluding the headwinds from foreign exchange, backlog was up $680 million or up 3% from last year. We continued our progress against our long-term growth strategies. Overall, we had a strong finish to the year despite a number of challenges as a result of this strong performance and our confidence in the future, our Board of Directors reauthorized a $750 million share buyback and approved a 13% increase in the quarterly dividend. We entered 2023 with strength and momentum across the portfolio, and we're well positioned to continue to drive profitable growth even with near-term uncertainty and volatility in the global economy.

多年積壓訂單總額為 224 億美元，同比增加 2.72 億美元，不包括外彙的不利因素，積壓訂單增加 6.8 億美元，比去年增長 3%。我們繼續按照我們的長期增長戰略取得進展。總體而言，儘管由於這種強勁的表現和我們對未來的信心而面臨許多挑戰，但我們在這一年取得了不錯的成績，我們的董事會重新授權了 7.5 億美元的股票回購，並批准將季度股息增加 13%。進入 2023 年，我們整個投資組合的實力和勢頭強勁，即使在全球經濟近期存在不確定性和波動性的情況下，我們也有能力繼續推動盈利增長。

Shifting our focus to Slide 5. Let's talk about our end market conditions in more details. As we look at key metrics across our Freight businesses, we remain encouraged by underlying business momentum and a strong pipeline of opportunities. North America carloads were down slightly in the quarter, but locomotive parkings are down from the same time last year despite lower freight traffic. We continue to see significant opportunities in demand for modernizations and new locomotives as our customers invest in their aging fleets, and they also place a greater focus on reliability, productivity and fuel efficiency.

將我們的注意力轉移到幻燈片 5。讓我們更詳細地談談我們的終端市場狀況。當我們審視我們貨運業務的關鍵指標時，我們仍然對潛在的業務勢頭和強大的機會渠道感到鼓舞。本季度北美載貨量略有下降，但儘管貨運量較低，但機車停車位較去年同期有所下降。隨著我們的客戶投資於他們老化的車隊，我們繼續看到對現代化和新機車需求的重大機會，他們也更加關注可靠性、生產力和燃油效率。

Looking at the North American railcar build demand for railcars continue to show strength with industry backlog about 60,000 cars. Railcars and storage are below pre-Covid levels with about 18% of the North American railcar fleet in storage. As a result, industry orders for new railcars continue to improve, and the industry outlook for 2023 is for about 40,000 to 45,000 cars to be delivered. Overall, we believe we have an opportunity to continue building significant long-term momentum with growth in modernizations in new locomotive sales in railcar builds and enrolling stock. Internationally, activity has also continued to show positive signs, and we continue to execute on a strong pipeline of opportunities.

縱觀北美軌道車建設，對軌道車的需求繼續顯示出強勁勢頭，行業積壓約 60,000 輛。鐵路車和存儲低於 Covid 之前的水平，大約 18% 的北美鐵路車處於存儲狀態。因此，新軌道車輛的行業訂單持續改善，2023 年的行業前景為交付約 40,000 至 45,000 輛汽車。總的來說，我們相信我們有機會繼續建立重要的長期勢頭，在軌道車建造和註冊庫存方面新機車銷售的現代化增長。在國際上，活動也繼續顯示出積極的跡象，我們繼續執行大量的機會。

Finally, transitioning to the Transit sector, the long-term secular drivers are positive as the globe continues to increase investments in clean, safe and efficient transportation solutions. Next, let's turn to Slide 6 to discuss a few recent business highlights. We recently secured additional Tier 4 locomotive orders in North America. These orders now total over 100 units to be delivered across 2023 and 2024.

最後，過渡到交通部門，隨著全球繼續增加對清潔、安全和高效交通解決方案的投資，長期的長期驅動因素是積極的。接下來，讓我們轉到幻燈片 6 來討論最近的一些業務亮點。我們最近在北美獲得了額外的 Tier 4 機車訂單。這些訂單現在總計超過 100 台，將在 2023 年和 2024 年交付。

We also signed 2 international deals in Asia and South America to deliver new rolling stock and also won 2 international long-term service contracts in South America and in Kazakhstan. Finally, Wabtec's FLXdrive locomotive was recognized for sustainable innovation by the Business Intelligence Group and awarded Commercial Technology of the Year by S&P Global. Looking ahead, all of this demonstrates the strong pipeline of opportunities we continue to execute on. Wabtec is well positioned to continue to capture profitable growth with innovative and scalable technologies that address our customers' most pressing needs.

我們還在亞洲和南美洲簽署了 2 項國際交易，以交付新的機車車輛，並在南美洲和哈薩克斯坦贏得了 2 項國際長期服務合同。最後，Wabtec 的 FLXdrive 機車因可持續創新而獲得商業智能集團的認可，並被標準普爾全球授予年度商業技術獎。展望未來，所有這些都表明我們將繼續把握大量機會。 Wabtec 已做好充分準備，通過可滿足客戶最緊迫需求的創新和可擴展技術繼續實現盈利增長。

Turning to Slide 7. I want to briefly touch on why we are strongly positioned to deliver resilient and more predictable earnings in volatile times. We believe our demonstrated execution combined with favorable end markets and our leading technologies and solutions will enable us to remain resilient during times of increasing volatility. This resiliency comes in part from our multiyear backlog and strong base of recurring revenues.

轉到幻燈片 7。我想簡要談談為什麼我們有能力在動盪時期提供有彈性和更可預測的收益。我們相信，我們展示的執行力與有利的終端市場以及我們領先的技術和解決方案相結合，將使我們能夠在波動加劇的時期保持彈性。這種彈性部分來自我們多年的積壓和強大的經常性收入基礎。

Our multiyear backlog of over $22 billion provides visibility and support for both short- and long-term growth. Similarly, our base of recurring revenues of 44% of total sales, which grew by 3 percentage points in 2022 provides high margin and stable earnings. And finally, we have a track record of strong operating margin expansion across the business as evidenced by our ability to realize price, deliver productivity and aggressively manage costs. Now let's turn to Slide 8. To further illustrate the point of our ability to drive consistent, predictable earnings, I wanted to provide more color about our combined new locomotive and modernization deliveries in North America.

我們超過 220 億美元的多年積壓訂單為短期和長期增長提供了可見性和支持。同樣，我們的經常性收入佔總銷售額的 44%，到 2022 年增長了 3 個百分點，這提供了高利潤率和穩定的收益。最後，我們在整個業務中都有強勁的營業利潤率增長記錄，我們實現價格、提供生產力和積極管理成本的能力證明了這一點。現在讓我們轉到幻燈片 8。為了進一步說明我們推動持續、可預測的收入的能力，我想提供更多有關我們在北美新機車和現代化交付組合的信息。

Over the past 6 years, North American new locomotive deliveries have been challenged due to weak carload growth, PSR and COVID. Over that period, the investment in the fleet has come primarily through modernization of locomotives, but this still remains below historical replacement levels. As we have discussed in past calls, the core North American active mainline fleet of heavy haul locomotives is made up of roughly 16,000 locomotives. With a replacement cycle of roughly 25 years per locomotive, we estimate the annual replacement rate over time to be over 600 new locomotives and/or modernizations per year.

在過去的 6 年裡，由於載貨量增長疲軟、PSR 和 COVID，北美新機車的交付受到了挑戰。在此期間，對機隊的投資主要來自於機車的現代化，但這仍低於歷史更新水平。正如我們在過去的電話會議中所討論的那樣，北美核心現役幹線重載機車車隊由大約 16,000 台機車組成。每台機車的更換週期約為 25 年，我們估計隨著時間的推移每年的更換率將超過 600 輛新機車和/或每年進行現代化改造。

As you can see, the industry has been operating at roughly half of that level for the past 6 years. Yet, looking forward, we expect a growing age for refreshment of that fleet and with [record] fleet age and growing obsolescence driven by NextGen technologies, along with the expectation of rail share gains versus truck and the need to reduce greenhouse gases by 2030 that the demand for reliable and efficient power is increasing.

如您所見，在過去 6 年中，該行業的運營水平約為該水平的一半。然而，展望未來，我們預計車隊更新換代的年齡會越來越大，隨著 [記錄] 車隊年齡的增長和 NextGen 技術推動的日益過時，以及與卡車相比鐵路份額增加的預期以及到 2030 年減少溫室氣體排放的需求對可靠和高效電力的需求正在增加。

These expected demand provides Wabtec opportunity to fill our existing capacity for delivery of new and modernized locomotive solutions in an effective and efficient fashion over the next several years. Looking forward, we believe our execution combined with strength of our business, leading products and technologies result in Wabtec being resilient through economic cycles, delivering more predictable earnings and superior shareholder returns.

這些預期需求為 Wabtec 提供了機會，可以在未來幾年內以有效和高效的方式填補我們現有的交付新的和現代化的機車解決方案的能力。展望未來，我們相信我們的執行力與我們的業務實力、領先的產品和技術相結合，將使 Wabtec 在經濟周期中保持彈性，提供更可預測的收益和卓越的股東回報。

And with that, I'll turn the call over to John to review the quarter segment results and our overall financial performance. John?

有了這個，我會把電話轉給約翰來審查季度業績和我們的整體財務業績。約翰？

Thanks, Rafael. And good morning. Turning to Slide 9, I will review our fourth quarter results in more detail. We finished the year with another good quarter of operational and financial performance despite continued challenges in foreign currency exchange, still elevated input costs and persistent supply chain disruptions. Sales for the fourth quarter were $2.31 billion, which reflects an 11.2% increase versus the prior year.

謝謝，拉斐爾。早上好。轉到幻燈片 9，我將更詳細地回顧我們第四季度的業績。儘管外匯兌換面臨持續挑戰、投入成本仍然高企且供應鏈持續中斷，但我們以又一個良好的季度運營和財務業績結束了這一年。第四季度銷售額為 23.1 億美元，較上年同期增長 11.2%。

Freight segment sales were very strong, up 17.1% and partially offset by unfavorable foreign currency exchange impacting sales in our Transit segment. Q4 sales were negatively impacted by unfavorable foreign currency exchange which reduced our revenue growth in the quarter by 4.5 percentage points. For the quarter, GAAP operating income was down $17 million, driven by higher restructuring costs. Adjusted operating margin in Q4 was 15.3%, down 0.8 percentage points versus prior year.

貨運部門的銷售額非常強勁，增長了 17.1%，部分被不利的外匯兌換影響了我們的運輸部門的銷售額所抵消。不利的外匯匯率對第四季度的銷售產生了負面影響，這使我們本季度的收入增長減少了 4.5 個百分點。本季度，由於重組成本增加，GAAP 營業收入下降了 1700 萬美元。第四季度調整後的營業利潤率為 15.3%，較上年同期下降 0.8 個百分點。

We expected our margin to be lower in the quarter on both a sequential and year-over-year basis. The key drivers of the year-over-year margin performance include unfavorable mix within business groups, in particular, within Equipment and Services due to strong sales of locomotives and modernizations versus last year's performance, some of which pushed from the third quarter to the fourth quarter and higher technology spend associated with investment in future growth and costs associated with the commercialization of the first battery electric locomotives.

我們預計本季度的利潤率在環比和同比基礎上都會降低。利潤率同比表現的主要驅動因素包括業務集團內部的不利組合，特別是由於機車和現代化的強勁銷售與去年的業績相比，設備和服務內部的不利組合，其中一些從第三季度推遲到第四季度與未來增長投資相關的季度和更高的技術支出以及與第一台電池電力機車商業化相關的成本。

GAAP earnings per diluted share were $0.86, which was down 15.7% versus the fourth quarter a year ago. During the quarter, we had pretax charges of $32 million for restructuring, largely related to our integration 2.0 initiative to further integrate Wabtec's operations and to drive $75 million to $90 million of run rate savings by 2025. I will talk more about our progress on Integration 2.0 in a moment.

GAAP 每股攤薄收益為 0.86 美元，比去年第四季度下降 15.7%。本季度，我們有 3200 萬美元的稅前重組費用，這主要與我們的整合 2.0 計劃有關，該計劃旨在進一步整合 Wabtec 的運營，並在 2025 年之前節省 7500 萬至 9000 萬美元的運行率。我將更多地談談我們在整合方面的進展2.0 馬上。

In the quarter, adjusted earnings per diluted share were $1.30, up 10.2% versus the prior year. Overall, Wabtec delivered another solid quarter of results, demonstrating the underlying strength of the business and our ability to navigate through volatile macroeconomic conditions. Turning to Slide 10. Let's review our product lines in more detail. Fourth quarter consolidated sales were strong, up 11.2%. Excluding foreign currency exchange, sales were up 15.7%. Equipment sales were up 14.1% from last year due to higher locomotive sales this quarter versus last year.

本季度調整後每股攤薄收益為 1.30 美元，較上年同期增長 10.2%。總體而言，西屋制動又取得了穩健的季度業績，展示了業務的潛在實力以及我們應對動蕩的宏觀經濟環境的能力。轉到幻燈片 10。讓我們更詳細地回顧一下我們的產品線。第四季度綜合銷售額強勁，增長 11.2%。不包括外匯兌換，銷售額增長了 15.7%。由於本季度機車銷量高於去年，設備銷量比去年增長 14.1%。

Component sales were up 10.6% year-over-year, largely driven by higher OE railcar build. Digital Electronics sales were up a strong 34.7%, which was driven by robust demand for onboard locomotive products and software upgrades along with revenue contribution from the strategic bolt-on acquisitions of Beena Vision and ARINC earlier in the year. Our services sales grew 16.6% versus last year.

零部件銷售額同比增長 10.6%，這主要是由於 OE 軌道車產量增加所致。數字電子銷售額強勁增長 34.7%，這是由於對機車產品和軟件升級的強勁需求以及今年早些時候戰略性收購 Beena Vision 和 ARINC 的收入貢獻所推動的。我們的服務銷售額比去年增長了 16.6%。

The year-over-year increase was driven by higher sales from a larger active fleet versus last year and increased MOD sales. Superior performance, reliability and availability of our fleet continues to drive increased customer demand for our services and solutions. Across our Transit segment, sales decreased 1.7% versus prior year to $637 million. Sales were down versus last year due to the negative impacts of foreign currency exchange. Absent the impacts of foreign currency, Transit sales would have been up 9.3%.

與去年同期相比，更大的活躍機隊的銷售額增加以及 MOD 銷售額的增加推動了同比增長。我們機隊的卓越性能、可靠性和可用性繼續推動客戶對我們的服務和解決方案的需求增加。在我們的公交部門，銷售額比上年下降 1.7% 至 6.37 億美元。由於外匯匯率的負面影響，銷售額較去年有所下降。如果沒有外彙的影響，全順銷售額將增長 9.3%。

The momentum in this segment remains positive as mega trends such as urbanization and decarbonization drive increased investments in green infrastructure. Now moving to Slide 11. As forecasted, gross profit margin was lower driven by unfavorable mix, adverse foreign currency exchange and higher input costs, partially offset by increased pricing and productivity. Pricing actions implemented to recover increased costs positively impacted our margins during the quarter.

隨著城市化和脫碳等大趨勢推動對綠色基礎設施的投資增加，這一領域的勢頭依然積極。現在轉到幻燈片 11。正如預測的那樣，由於不利的組合、不利的外匯兌換和更高的投入成本，毛利率較低，部分被定價和生產力的提高所抵消。為收回增加的成本而實施的定價行動對我們本季度的利潤產生了積極影響。

Mix was unfavorable, especially within our equipment and services businesses behind strong sales of locomotives and MODs. Raw material costs, while down from recent highs over the last year were up again year-over-year. Foreign currency exchange adversely impacted revenues by 4.5 percentage points and adversely impacted fourth quarter gross profits by $21 million. Finally, manufacturing costs were favorable due to productivity gains, which were partially offset by higher transportation costs.

混合是不利的，特別是在我們的設備和服務業務中，機車和 MOD 的銷售強勁。原材料成本雖然從去年的近期高位回落，但同比再次上漲。外匯兌換對收入產生了 4.5 個百分點的不利影響，並對第四季度毛利潤產生了 2100 萬美元的不利影響。最後，由於生產率的提高，製造成本是有利的，這部分被更高的運輸成本所抵消。

Our team continues to execute well to mitigate the impact of these cost pressures by driving operational productivity and lean initiatives. Turning to Slide 12. For the fourth quarter, as expected, operating margin declined on both a GAAP and adjusted basis, driven by lower gross margins and increased investment in future technologies. GAAP SG&A was up $8 million versus prior year due to higher net restructuring costs related to Integration 2.0.

我們的團隊繼續通過提高運營效率和精益計劃來很好地執行以減輕這些成本壓力的影響。轉到幻燈片 12。正如預期的那樣，第四季度的營業利潤率在 GAAP 和調整後的基礎上均有所下降，這是由於毛利率下降和對未來技術的投資增加所致。由於與 Integration 2.0 相關的淨重組成本增加，GAAP SG&A 比上一年增加了 800 萬美元。

Adjusted SG&A was $271 million which was flat versus prior year, but down 1.3 percentage points as a percentage of sales. Engineering expense increased from last year according to plan. We continue to invest engineering resources and current business opportunities but more importantly, we are investing in our future as the industry leader in decarbonization and digital technologies that improve our customers' productivity, capacity utilization and safety.

調整後的 SG&A 為 2.71 億美元，與上年持平，但佔銷售額的百分比下降了 1.3 個百分點。工程費用按計劃比上年增加。我們繼續投資工程資源和當前的商機，但更重要的是，我們正在投資於未來，成為脫碳和數字技術領域的行業領導者，以提高客戶的生產力、產能利用率和安全性。

Now let's take a look at our segment results on Slide 13, starting with the Freight segment. As I already discussed, Freight segment sales were strong for the quarter, and GAAP segment operating income was $209 million for an operating margin of 12.5%, down 2 percentage points, which was impacted by increased restructuring expenses versus the year ago quarter.

現在讓我們看看我們在幻燈片 13 上的細分結果，從貨運細分開始。正如我已經討論過的那樣，本季度貨運部門的銷售強勁，GAAP 部門營業收入為 2.09 億美元，營業利潤率為 12.5%，下降 2 個百分點，這是受到重組費用與去年同期相比增加的影響。

Segment adjusted operating income was $284 million, down 1.7 percentage points versus the prior year. The benefits of higher sales and improved productivity were offset by unfavorable mix within business groups and higher technology investments and costs associated with the commercialization of the first battery electric locomotives. Finally, segment backlog was $18.64 billion, up $139 million or 0.8% from the end of Q4 last year.

部門調整後營業收入為 2.84 億美元，比上年下降 1.7 個百分點。更高的銷售額和更高的生產率的好處被業務集團內部的不利組合以及與第一台電池電力機車商業化相關的更高技術投資和成本所抵消。最後，部門積壓訂單為 186.4 億美元，比去年第四季度末增加 1.39 億美元或 0.8%。

On a constant currency basis, segment backlog was up $344 million from last year. Turning to Slide 14. Transit segment sales were down 1.7%, driven by the negative effects of foreign currency exchange. Unfavorable foreign currency exchange impacted segment sales by 11 percentage points. GAAP operating income was $63 million, down 2.3 percentage points, which was impacted by increased restructuring expenses versus the year ago quarter, largely related to our Integration 2.0 initiative. Adjusted segment operating income increased by $7 million to $95 million, which resulted in an adjusted operating margin of 14.8%, up 1.2 percentage points versus the prior year, driven by strong productivity, benefits from prior restructuring activities and disciplined cost management.

按固定匯率計算，部門積壓訂單比去年增加了 3.44 億美元。轉到幻燈片 14。由於外彙的負面影響，運輸部門的銷售額下降了 1.7%。不利的外匯匯率對分部銷售額產生了 11 個百分點的影響。 GAAP 營業收入為 6300 萬美元，下降 2.3 個百分點，這是受到重組費用與去年同期相比增加的影響，這主要與我們的 Integration 2.0 計劃有關。調整後的分部營業收入增加了 700 萬美元，達到 9500 萬美元，這導致調整後的營業利潤率為 14.8%，比上年增長 1.2 個百分點，這得益於強勁的生產力、先前重組活動帶來的收益以及嚴格的成本管理。

Finally, Transit segment backlog for the quarter was $3.8 billion, up 3.6% versus a year ago. On a constant currency basis, backlog would have been up 9.2%. Moving to Slide 15. I would like to briefly touch on our progress against our Integration 2.0 initiative. Recall that during our Investor Day last March, we announced a restructuring program comprised of an estimated onetime expenses between $135 million and $165 million that would yield an incremental $75 million to $90 million of run rate cost savings by 2025.

最後，本季度的公交部門積壓訂單為 38 億美元，同比增長 3.6%。按固定匯率計算，積壓訂單將增長 9.2%。轉到幻燈片 15。我想簡要介紹一下我們在 Integration 2.0 計劃方面取得的進展。回想一下，在去年 3 月的投資者日期間，我們宣布了一項重組計劃，其中包括估計在 1.35 億美元至 1.65 億美元之間的一次性費用，到 2025 年將產生 7500 萬至 9000 萬美元的運行率成本節約。

These savings were to be achieved through a combination of actions which simplify, streamline and consolidate parts of our operations. A great example of the actions we are taking to drive these savings occurred in the fourth quarter, including 2 consolidation projects across our manufacturing footprint, which will eliminate a total of 4 facilities and a third project focused on streamlining and optimizing our North American distribution network. With full year restructuring expenses of $46 million in 2022, we achieved an initial $5 million of savings during the year.

這些節省將通過簡化、精簡和整合我們部分運營的行動組合來實現。我們為推動這些節省而採取的行動的一個很好的例子發生在第四季度，包括我們整個製造足蹟的 2 個整合項目，這將消除總共 4 個設施，以及第三個項目專注於精簡和優化我們的北美分銷網絡. 2022 年全年重組費用為 4600 萬美元，我們在這一年實現了 500 萬美元的初步節省。

We expect investment to increase more meaningfully in 2023 and are on track to meet our 2025 goals, positioning Wabtec to drive multiyear margin expansion. Now let's turn to our financial position on Slide 16. We had strong cash generation in the quarter. Q4 cash flow was $410 million, bringing total cash for the year to $1.04 billion for a cash conversion rate of 93%.

我們預計 2023 年投資將更有意義地增加，並有望實現我們的 2025 年目標，從而使 Wabtec 能夠推動多年的利潤率擴張。現在讓我們來看看我們在幻燈片 16 上的財務狀況。本季度我們產生了強勁的現金。第四季度現金流為 4.1 億美元，使全年現金總額達到 10.4 億美元，現金轉換率為 93%。

Cash flow benefited from higher earnings but was impacted versus last year by the proactive build of inventories ahead of our 2023 growth expectations and managing supply disruptions of critical parts. Our debt leverage ratio at the end of the fourth quarter declined to 2.2x, and our liquidity is robust at $2.29 billion. And finally, we returned a significant amount of capital back to shareholders in 2022 with $584 million returned through share repurchases and dividends.

現金流受益於較高的收益，但與去年相比受到我們在 2023 年增長預期之前主動建立庫存和管理關鍵部件供應中斷的影響。我們在第四季度末的債務槓桿率降至 2.2 倍，我們的流動性強勁，達到 22.9 億美元。最後，我們在 2022 年通過股票回購和派息向股東返還了大量資本，共返還 5.84 億美元。

And as Rafael mentioned, our Board of Directors approved a $750 million share buyback reauthorization and increased our quarterly dividend to $0.17 per share, up 13%. As you can see in these results, our financial position is strong, and we continue to allocate capital and a balanced strategy to maximize shareholder returns. Now moving to Slide 17. Quickly recapping the year. Overall, the team delivered a strong year for all our stakeholders. Despite challenging dynamics, we drove revenue growth, expanded our operating margins and generated robust cash flow.

正如 Rafael 提到的，我們的董事會批准了 7.5 億美元的股票回購重新授權，並將我們的季度股息增加到每股 0.17 美元，增長 13%。正如您在這些結果中看到的那樣，我們的財務狀況良好，我們將繼續分配資本和平衡戰略以最大化股東回報。現在轉到幻燈片 17。快速回顧這一年。總體而言，該團隊為我們所有的利益相關者帶來了豐收的一年。儘管充滿挑戰，我們還是推動了收入增長，擴大了營業利潤率並產生了強勁的現金流。

The resiliency of the business and strong execution provides us a solid foundation and good momentum as we enter 2023. And with that, I'd like to turn the call back over to Rafael.

在我們進入 2023 年時，業務的彈性和強大的執行力為我們提供了堅實的基礎和良好的勢頭。因此，我想把電話轉回拉斐爾。

Thanks, John. Let's flip to Slide 18 to discuss our 2023 financial guidance. We believe that the underlying customer demand for our products and solutions remain strong across our product lines and our backlog continues to provide visibility into 2023 and beyond. We are committed to driving adjusted margin expansion into 2023 despite FX volatility, a still challenging cost environment and continued investments in technology.

謝謝，約翰。讓我們翻到幻燈片 18 來討論我們的 2023 年財務指南。我們相信，客戶對我們產品和解決方案的潛在需求在我們的產品線中仍然強勁，我們的積壓訂單將繼續提供 2023 年及以後的可見性。儘管匯率波動、成本環境仍然充滿挑戰以及對技術的持續投資，我們仍致力於將調整後的利潤率擴大到 2023 年。

The team is committed to driving strong top line growth while aggressively managing costs. With these factors in mind, we expect 2023 sales of $8.7 billion to $9 billion, which is up nearly 6% at the midpoint and adjusted EPS to be between $5.15 and $5.55 per share, which is up 10% at the midpoint. We expect cash flow conversion to be greater than 90%. Now let's wrap up on Slide 19. As you heard today, our team delivered a solid quarter to finish out the strong year. We delivered on our full year commitments despite a challenging and volatile environment, thanks in large part to our resilient installed base, world-class team, innovative technologies and our relentless focus on our customers.

該團隊致力於推動強勁的收入增長，同時積極管理成本。考慮到這些因素，我們預計 2023 年的銷售額將達到 87 億美元至 90 億美元，中點增長近 6%，調整後每股收益將在 5.15 美元至 5.55 美元之間，中點增長 10%。我們預計現金流轉換率將大於 90%。現在讓我們結束幻燈片 19。正如您今天所聽到的，我們的團隊以穩健的季度業績結束了強勁的一年。儘管環境充滿挑戰和動盪，我們仍兌現了全年承諾，這在很大程度上要歸功於我們堅韌的客戶群、世界一流的團隊、創新的技術以及我們對客戶的不懈關注。

These results were in line with our 5-year outlook we provided at our Investor Day last year. With strong momentum across the portfolio, increased visibility through our multiyear backlog and relentless focus on continuous cost improvement, Wabtec is well positioned to drive profitable long-term growth and maximize shareholder returns.

這些結果與我們在去年投資者日提供的 5 年展望一致。憑藉整個產品組合的強勁勢頭、通過我們多年積壓的訂單提高知名度以及對持續成本改進的不懈關注，Wabtec 有能力推動盈利性長期增長並最大限度地提高股東回報。

With that, I want to thank you for your time this morning. I'll now turn the call over to Kristine to begin the Q&A portion of our discussion. Kristine?

有了這個，我要感謝你今天早上的時間。我現在將電話轉給 Kristine，開始我們討論的問答部分。克里斯汀？

Thank you, Rafael. We will now move on to questions. (Operator Instructions) Operator, we are now ready for our first question.

謝謝你，拉斐爾。我們現在將繼續提問。 （操作員說明）操作員，我們現在準備好回答第一個問題。

We will now begin the question-and-answer session. (Operator Instructions) The first question today comes from Allison Poliniak with Wells Fargo.

我們現在開始問答環節。 （操作員說明）今天的第一個問題來自富國銀行的 Allison Poliniak。

Want to turn to the services outlook. You noted an uptick in locomotive. Just wondering if you could give us a little bit more context on how impactful you're thinking about that for '23. Is it sort of a point offset something bigger. I know there's a lot of moving parts in that business right now? Just any thoughts.

想轉向服務前景。你注意到機車的上升。只是想知道您是否可以為我們提供更多背景信息，說明您對 23 年的想法有多大影響。它是不是有點抵消了更大的東西。我知道現在該業務中有很多活動部件嗎？只是任何想法。

Yes. Want the comment specifically with regards to services section?

是的。想要專門針對服務部分的評論嗎？

Yes, yes.

是的是的。

Okay. Allison, I mean, we're certainly when you think about North America carloads being down year-to-date. So we're continuing to see demand for both MODs and new locomotives I think a lot of that is really tied to driving productivity, driving efficiency, driving reliability and [ticked order piece] is certainly an element if you think about the CapEx for Class 1s in the U.S. We see that up for the year.

好的。艾莉森，我的意思是，當你想到今年迄今為止北美的載貨量下降時，我們當然是。因此，我們繼續看到對 MOD 和新機車的需求，我認為其中很多確實與提高生產率、提高效率、提高可靠性有關，如果您考慮 Class 的資本支出，[ticked order piece] 肯定是一個要素1s 在美國我們看到這一年。

So those are potentially some of the headwinds could come with, I think, lower carloads right now, and we're really planning for flattish in terms of that context. But I think what's most important is really the element of the backlog coverage that we've got for the year. It's a hedge of what we had a year ago. This is probably one of the highest 12-month backlog we've had since 2019, which really just further strengthens our position to deliver in '23 and last year, we signed a number of multiyear orders, I think, for both new locomotives, but for modernizations as well. So this provides additional visibility not just in to '23 but in the case of MODs, all the way into '25 for new locomotives beyond that.

因此，我認為，這些可能會帶來一些不利因素，現在載貨量降低，我們真的在計劃在這種情況下持平。但我認為最重要的是我們今年所獲得的積壓覆蓋範圍的要素。這是我們一年前的對沖。這可能是我們自 2019 年以來最高的 12 個月積壓訂單之一，這實際上進一步加強了我們在 23 年交付的地位，我認為，我們為兩種新機車簽署了許多多年訂單，但也適用於現代化。因此，這不僅提供了 23 年的額外可見性，而且在 MOD 的情況下，一直到 25 年之後的新機車。

So we have a strong pipeline of deals, and we continue to see good momentum in both the pipeline of deals in North America and internationally.

因此，我們擁有強大的交易渠道，並且我們繼續看到北美和國際交易渠道的良好勢頭。

No, that's great. And then just a point, you mentioned sort of that replacement level for locomotives. Under the assumption that you probably wouldn't reach that level this year. But how quickly, I mean, there's ESG targets and so forth. Is it sort of a '24, '25 that you think you could reach that sort of run rate for replacement there or above? Just any thoughts there on how you see this walk towards that level.

不，那太好了。然後只是一點，你提到了機車的那種更換水平。假設你今年可能達不到那個水平。但是，我的意思是，有多快就有了 ESG 目標等等。您是否認為您可以達到那種運行率以在那里或更高的位置進行更換？關於您如何看待走向那個水平的任何想法。

Allison, I wouldn't speculate how that will progress. But I think it was strongly still coming from the trough. And so when you look at some of the elements of the age of the fleet, continued investment to make sure you have productivity, but you also drive reliability on that fleet and the elements of ESG, I think we have a lot of opportunity here to help customers bridge that existing power into cleaner power.

艾莉森，我不會推測這將如何進展。但我認為它仍然強烈地來自低谷。因此，當你審視機隊時代的一些要素時，繼續投資以確保你有生產力，但你也提高了機隊的可靠性和 ESG 的要素，我認為我們在這裡有很多機會幫助客戶將現有電力轉化為更清潔的電力。

So it comes with upgrades and incorporating technologies like hybrid and things like that. So I think we're well positioned in that regard.

所以它伴隨著升級和整合技術，比如混合動力和類似的東西。所以我認為我們在這方面處於有利地位。

Your next question comes from Justin Long with Stephens.

你的下一個問題來自 Justin Long 和 Stephens。

I wanted to ask about Freight margins. I know you were expecting negative mix and some sequential weakness there, but the magnitude of the weakness was a bit surprising, especially when you look at the different businesses within Freight, Digital Electronics and Services revenue was up pretty significantly on a sequential basis and Equipment revenue was actually down a bit.

我想問一下運費。我知道你預料到負面組合和一些連續的疲軟，但疲軟的程度有點令人驚訝，特別是當你看看貨運、數字電子和服務收入的連續增長和設備的不同業務時收入實際上下降了一點。

So I was wondering if you could give a little bit more color on the mix impact you saw maybe within those different businesses. And I know you called out the tech costs as well. So maybe a quantification of the headwind you saw there?

所以我想知道你是否可以對你在這些不同業務中看到的混合影響給出更多的顏色。我知道你也提到了技術成本。那麼也許是你在那裡看到的逆風的量化？

Okay, Justin, this is John. So again, let's step back in the full year guidance. We expected it to be up in 2022, and we talked about margin growth in the first half and margin contraction in the back half, which you had mentioned, Justin. And that's exactly what happened. The first half was up 1.4 percentage points and the second half was down 0.7 points. And the fourth quarter was right in line with the second half being down that 0.7 point.

好的，賈斯汀，這是約翰。因此，讓我們再次回顧全年指導。我們預計它會在 2022 年上升，我們談到了上半年的利潤率增長和下半年的利潤率收縮，賈斯汀，你提到過。而這正是發生的事情。上半場上升1.4個百分點，下半場下降0.7個百分點。第四節恰好與下半場下降 0.7 分一致。

So overall, fourth quarter was down 0.8%. A couple of things driving that is first the unfavorable mix. That was the biggest driver of the reduction. And Justin, that was business that was mixed within our business groups. You had mentioned between our business groups, right? And some of our higher margin products did grow at a faster rate, but that was offset by unfavorable mix within the groups. And in particular, that was within the Equipment and Services group behind very strong sales of locomotives and modernizations versus last year.

因此，總體而言，第四季度下降了 0.8%。有幾件事首先是不利的組合。這是減少的最大驅動因素。賈斯汀，那是我們業務集團中混合的業務。您在我們的業務組之間提到過，對嗎？我們的一些利潤率較高的產品確實以更快的速度增長，但這被集團內部的不利組合所抵消。特別是，與去年相比，機車和現代化設備的銷售非常強勁，這歸功於設備和服務集團。

And to put it in perspective, we sold 30% of all combined locos and MODs were sold in the fourth quarter. So that put that pressure on it. And if you recall, Justin, in the third quarter, [maxly] margins came in a little bit better than what we had anticipated. And at that time, we talked about some of our international local MOD deliveries being pushed from the third quarter to the fourth quarter. So that was why it was a little bit more pronounced maybe than was expected. So that was a big piece of it. The other piece was really our continued investment in the future of our business and decarbonization.

從正確的角度來看，我們在第四季度售出了所有組合機車和 MOD 的 30%。所以這給它施加了壓力。如果你還記得，賈斯汀，在第三季度，[最大]利潤率比我們預期的要好一點。那時，我們談到我們的一些國際本地 MOD 交付從第三季度推遲到第四季度。所以這就是為什麼它可能比預期的更明顯一點。所以這是很大一部分。另一部分實際上是我們對未來業務和脫碳的持續投資。

So part of that was the technology spend. And as you can see on the face of the P&L, that was up $8 million on a year-over-year basis. And again, that is our investment in hydrogen and battery electric as well as digital. And the other piece with regards to our investment in the future were costs associated with the commercialization of the first battery electric locomotives. So we -- about a year from now, we'll be shipping out the first battery electric. We couldn't be more thrilled or excited about that.

所以其中一部分是技術支出。正如您在損益表上看到的那樣，同比增長 800 萬美元。再一次，這是我們在氫和電池電力以及數字方面的投資。關於我們未來投資的另一部分是與第一台電池電力機車商業化相關的成本。所以我們 - 大約一年後，我們將運送第一批電池。我們對此感到非常激動或興奮。

And in the fourth quarter, we had costs and as you remember, we wouldn't have had those same costs in 2021. So that's what's driving the negative variance on those. But overall, we're right where we expect it to be on a full year basis. And certainly looking forward to moving into a strong 2023.

在第四季度，我們有成本，正如你記得的那樣，我們在 2021 年不會有同樣的成本。所以這就是導致這些成本出現負差異的原因。但總的來說，我們在全年的基礎上是正確的。並且當然期待進入強勁的 2023 年。

That's helpful. And is there a way to quantify the costs related to the battery electric commercialization that you referenced?

這很有幫助。有沒有辦法量化與您提到的電池電力商業化相關的成本？

Well, I would say generally, overall, half of it was mix and the other half was a combination of the investment in both technology as well as the commercialization costs.

好吧，我想說的是，總的來說，一半是混合，另一半是技術投資和商業化成本的結合。

Got it. Got it. Very helpful. And then on the 2023 guidance, are buybacks assumed within that outlook? And maybe, John, you could give a little bit of color on the expected quarterly cadence of that guidance because to the point you just made, we can see some fluctuations based on the timing of locomotive deliveries and MODs.

知道了。知道了。很有幫助。然後在 2023 年的指導方針中，回購是否假設在該展望範圍內？也許，約翰，你可以為該指導的預期季度節奏提供一些顏色，因為就你剛才所說的而言，我們可以看到一些基於機車交付和 MOD 時間的波動。

Yes. First, Justin, the first question is the use of -- or the generation of cash that we expect to have in 2023 is part of our -- included in our guidance. You had mentioned repurchases. Again, that could come in the form of acquisitions. It could come in the form of share repurchases. It all depends on if we have the right M&A, we'll invest it that way.

是的。首先，賈斯汀，第一個問題是使用 - 或者我們預計在 2023 年產生的現金是我們的一部分 - 包括在我們的指導中。你提到了回購。同樣，這可能會以收購的形式出現。它可能以股票回購的形式出現。這完全取決於我們是否進行了正確的併購，我們將以這種方式進行投資。

But the cash generation is contemplated in the guidance that we provided this morning. When -- the second question is, when we move to revenue and margin cadence, I think the most important part is on a full year basis, we expect our operating margins to be up moderately versus 2022 margins of the 16.2% and to be generally in line with our long-term margin growth framework that we presented at our Investor Day about a year ago, Justin. So okay, let's talk about revenue and margin guidance for 2023. I want to start with 2022 because it certainly plays into what we expect in '23.

但是我們今天早上提供的指導中考慮了現金生成。第二個問題是，當我們轉向收入和利潤率節奏時，我認為最重要的部分是全年，我們預計我們的營業利潤率將比 2022 年的 16.2% 的利潤率略有上升，並且總體上是符合我們大約一年前在投資者日提出的長期利潤增長框架，賈斯汀。好吧，讓我們談談 2023 年的收入和利潤率指導。我想從 2022 年開始，因為它肯定符合我們在 23 年的預期。

All through 2022, we characterized our revenue and margin cadence as higher margin growth in the first half and higher revenue growth in the back half. And that's exactly the way it played out. In 2023, we expect to see the opposite cadence that we had in 2022. Consequently, we expect higher revenue growth in the first half versus the second half of 2023, and we expect our full year margin growth to come largely in the second half of 2023.

整個 2022 年，我們將收入和利潤率節奏描述為上半年較高的利潤率增長和下半年較高的收入增長。這正是它發揮作用的方式。到 2023 年，我們預計會看到與 2022 年相反的節奏。因此，我們預計上半年的收入增長將高於 2023 年下半年，我們預計全年利潤率增長主要出現在 2023 年下半年2023.

And as you can imagine, the drivers of this are the cadence that we continue to see with -- I'm sorry, the driver of the cadence is the mix impact of our international locomotive sales. And Justin, as we talked about it, they were pretty pronounced in the back half of 2022. And we would expect more mix headwinds in the front half of 2023 as some -- as we execute on some of those international locomotive sales. And then the second reason is that we're comping against higher '22 margins in the first half and stronger '22 revenue growth in the second half.

正如你可以想像的那樣，這方面的驅動因素是我們繼續看到的節奏——對不起，節奏的驅動因素是我們國際機車銷售的綜合影響。賈斯汀，正如我們所談到的，它們在 2022 年下半年非常明顯。我們預計 2023 年上半年會有更多的混合逆風——因為我們執行其中一些國際機車銷售。然後第二個原因是我們正在與上半年更高的 '22 利潤率和下半年更強勁的 '22 收入增長相抗衡。

Next question comes from Scott Group with Wolfe Research.

下一個問題來自 Scott Group 和 Wolfe Research。

So any color on the new Tier 4 local orders? Is that on rail, multiple rails? And can you say who it's with? And how you expect that order to be split out over the next couple of years? And then just maybe just separately, as I think about like markets, any update here on ECP breaks, it's in the news a little bit and how you think about that opportunity?

那麼新的 Tier 4 本地訂單有什麼顏色嗎？那是在鐵路上，多條鐵路上嗎？你能說出它和誰在一起嗎？您預計未來幾年該訂單將如何拆分？然後可能只是分開，正如我所想的那樣，市場，關於 ECP 休息的任何更新，它都在新聞中，你如何看待這個機會？

Scott, I think first, I mean, we continue to see our demand for both new locomotives and for modernizations that we -- as we had highlighted on previous calls. So we've been able to secure at this point, over 100 units. They will be delivered between 2023 and 2024. And it's really a function of us working through the supply chain here, but that's how we see it playing out.

斯科特，我想首先，我的意思是，我們繼續看到我們對新機車和現代化的需求——正如我們在之前的電話會議上強調的那樣。所以我們現在已經能夠確保超過 100 個單位。它們將在 2023 年到 2024 年之間交付。這確實是我們在這里通過供應鏈工作的一個功能，但這就是我們看到它發揮作用的方式。

And we continue to look at certainly, I think, expanding some of the penetration of some of the products that we have. I think specifically with Brakes that's something we talked earlier on during -- when we started the integration. It's something we're certainly looking at incorporating the new products, and it's certainly an opportunity that we'll continue to look at it.

我認為，我們肯定會繼續關注擴大我們擁有的一些產品的滲透率。我認為特別是對於 Brakes，這是我們之前在開始整合時討論過的事情。這是我們肯定會考慮整合新產品的東西，這當然是我們將繼續關注它的機會。

Okay. And then as I think about last year and now your guidance for this year, right, better revenue growth is sort of coinciding with maybe some margin pressure and when I know sort of when revenue growth slows, some better margins. Is there something we can do to sort of get both at the same time of good revenue growth and margin improvement sort of coinciding with each other? I'm just curious how you think about that over the next few years.

好的。然後當我想到去年和現在你對今年的指導時，對，更好的收入增長可能與一些利潤率壓力相吻合，當我知道收入增長放緩時，一些更好的利潤率。我們是否可以做些什麼來同時獲得良好的收入增長和利潤率的提高？我只是好奇你在接下來的幾年裡會怎麼想。

Well, I'll just start with, I think we're well positioned to both revenue and margin expansion going to '23 and I think what gives us, I'll call greater confidence than maybe before even is the fact that we have the backlog coverage that goes not just into '23. I think you saw some of my comments when it comes down to visibility into '24 and '25. So -- and we believe our guidance here is pretty prudent in the light of all the headwinds we had in the past couple of years. So we feel pretty really committed to be driving here strong mid-single digits up on the revenue line and double digits on EPS.

好吧，我首先要說的是，我認為我們已經做好了到 23 年的收入和利潤率擴張的準備，我認為是什麼給了我們，我會說比以前更有信心的事實是我們擁有積壓的覆蓋範圍不僅限於 23 年。我想當涉及到 24 和 25 年的可見性時，您看到了我的一些評論。所以——我們相信，鑑於過去幾年我們遇到的所有不利因素，我們在這裡的指導是非常謹慎的。因此，我們真的非常致力於在收入線上推動強勁的中個位數增長，並在 EPS 上實現兩位數增長。

Next question comes from Chris Wetherbee with Citigroup.

下一個問題來自花旗集團的 Chris Wetherbee。

This is Matt on for Chris. If you guys could just touch a little bit more on how you're evaluating acquisition opportunities and sort of how we should be thinking about the year in 2023 and if you think sort of in 2022, if there is any comparable metrics on that front, just sort of show your puts and takes on how you're thinking about that moving forward into this year.

這是克里斯的馬特。如果你們能多談談你們是如何評估收購機會的，以及我們應該如何考慮 2023 年，如果你們認為是 2022 年，如果這方面有任何可比較的指標，只是展示你的看跌期權，並說明你是如何考慮進入今年的。

Matt, this is John. Matt, just in general, when we look at capital allocation, we are very interested in doing strong strategic bolt-on M&A that is accretive to overall margins. So that being said, first, if we don't have that, we're very, very happy to return the cash to our shareholders in the form of share repurchases. And that's exactly what you saw in 2022.

馬特，這是約翰。馬特，總的來說，當我們考慮資本配置時，我們非常有興趣進行強有力的戰略補強併購，以增加整體利潤率。所以話雖這麼說，首先，如果我們沒有，我們非常非常樂意以股票回購的形式將現金返還給我們的股東。這正是你在 2022 年所看到的。

We had on 3 acquisitions totaling about $90 million of investment, and then we returned $473 million in share repurchases and then another 100-plus in dividends. But as we look forward, we have a very robust process that we follow. That we look at all the opportunities that we have. We certainly have areas of focus that we're pressing on to largely in the digital and some of the new technologies that will be the future of rail. But we are very focused on garnering strong acquisitions, and we're working hard at it.

我們進行了 3 次收購，總投資約 9000 萬美元，然後我們通過股票回購返還了 4.73 億美元，然後又派發了 100 多美元的股息。但當我們展望未來時，我們有一個非常強大的流程可以遵循。我們會審視我們擁有的所有機會。我們當然有一些重點領域，我們正在大力推動數字技術和一些將成為鐵路未來的新技術。但我們非常專注於獲得強大的收購，我們正在為此努力。

Awesome. And just following up on a little bit of a separate topic, just touching on rail volumes in general. I know that you said they came in a little bit softer in the fourth quarter and that potentially wait on business and some aspect. I didn't know if you had any sort of comments regarding rail volumes, seeing a little bit of a weaker freight economy in the first half of this year.

驚人的。只是跟進一個單獨的話題，只是涉及一般的鐵路運輸量。我知道你說過他們在第四季度的表現有所減弱，這可能會等待業務和某些方面。我不知道你是否對鐵路運量有任何評論，今年上半年貨運經濟略顯疲軟。

And do you think that, that -- if there's any risk associated with that 2022 guidance that you guys issued.

你是否認為，你們發布的 2022 年指南是否存在任何風險？

So I think -- I mean, you got to look at both, and I think we're seeing a pipeline of opportunities both strong in North America and internationally. I think quarter-to-date, we've made more progress in some key geographies. Some that I would highlight to you is certainly Kazakhstan and Africa. You'll see us continue to expand on both new locomotives, modernizations and service orders. We have a number of projects under discussion in Asia, where the volume dynamics continue to be a positive.

所以我認為 - 我的意思是，你必須同時考慮兩者，我認為我們在北美和國際上都看到了一系列強大的機會。我認為到目前為止，我們在一些關鍵地區取得了更多進展。我要向你們強調的一些肯定是哈薩克斯坦和非洲。您會看到我們在新機車、現代化改造和服務訂單方面繼續擴張。我們在亞洲有許多項目正在討論中，這些項目的成交量動態仍然是積極的。

In mining, the demand continues similar to what I said on the previous quarter, we're seeing services growing faster than equipment. In North America, I think despite of carloads being down, we continue to see interest and demand on both modernizations and to new locomotives. In Transit, I think the infrastructure spending continues. Governments are continuing to invest. Our OEMs have very strong backlogs. We'll see some of that converting to orders for our Transit business and we're continuing to increase investment into technologies.

在採礦業，需求繼續與我在上一季度所說的類似，我們看到服務增長快於設備。在北美，我認為儘管載客量下降，但我們繼續看到對現代化和新機車的興趣和需求。在 Transit 方面，我認為基礎設施支出仍在繼續。政府正在繼續投資。我們的原始設備製造商有非常多的積壓訂單。我們將看到其中一些轉化為我們 Transit 業務的訂單，並且我們將繼續增加對技術的投資。

So when you think of battery electric, I think we're excited about some of the opportunities there. First delivery is happening next year and we're continuing to make progress on that as well.

所以當你想到電池電力時，我認為我們對那裡的一些機會感到興奮。明年將首次交付，我們也將繼續在這方面取得進展。

Next question comes from Saree Boroditsky with Jefferies.

下一個問題來自 Jefferies 的 Saree Boroditsky。

So you highlighted $5 million of savings realized this year as part of Integration 2.0. Could you provide any color on how you're thinking about these savings into 2023?

因此，您強調了今年作為 Integration 2.0 的一部分實現的 500 萬美元的節省。您能否提供任何有關您如何考慮到 2023 年節省的資金的顏色？

Yes. So number one, Integration 2.0. We just launched about a year ago, and we couldn't be more pleased. We spent -- invested $46 million little bit higher than we first anticipated when we put the program together, which is great news, and that our team's got the projects off announced and set quicker than we thought.

是的。所以第一，集成 2.0。我們大約一年前剛剛推出，我們非常高興。我們花了——投資了 4600 萬美元，比我們把這個項目放在一起時的最初預期略高一點，這是個好消息，我們的團隊比我們想像的更快地宣布了項目並啟動了項目。

And so we would expect the savings to be garnered a little bit ahead of our schedule as well. But the first year of $5 million, we feel great because a lot of those projects didn't start until later in the year. And we would expect a pretty quick ramp on that because as we exit 2025, we'll be at the run rate of $75 million to $90 million of savings. So that's just a couple of years away. So we would expect a pretty sizable increase, both in '23 and '24, leading up to '25.

因此，我們希望節省的資金也能比我們的計劃提前一點。但是第一年 500 萬美元，我們感覺很棒，因為很多項目直到今年晚些時候才開始。我們預計這方面的增長會很快，因為到 2025 年結束時，我們將以 7500 萬至 9000 萬美元的運行率節省開支。所以這只是幾年之後。因此，我們預計在 23 年和 24 年都會有相當大的增長，直到 25 年。

And then one of your competitors recently took a large impairment charge on the lower outlook for locos and MODs. Could you maybe talk about the competitive environment and how you're thinking about market share gains?

然後你的一個競爭對手最近對機車和 MOD 的前景較低進行了大筆減值費用。您能否談談競爭環境以及您如何考慮市場份額的增加？

On that one, we continue to really focus on partnering and creating value for our customers, and that comes with really innovative solutions that drive value for them and drives value for us as well. As a result, I think we're well positioned to drive long-term profitable growth for the business. We'll not comment on the specifics of any announcements here at this point.

在這一點上，我們繼續真正專注於為我們的客戶合作和創造價值，並且伴隨著真正創新的解決方案，為他們創造價值，也為我們創造價值。因此，我認為我們有能力推動業務的長期盈利增長。此時我們不會對任何公告的細節發表評論。

The next question comes from Jerry Revich with Goldman Sachs.

下一個問題來自高盛的 Jerry Revich。

I was really impressed with the Transit performance in the quarter, both from margins and bookings standpoint. Can you just talk about your expectations for margins in '23 for that segment in particular? And if you could just give us color on what drove the bookings and the margin profile of what's coming in the book now?

從利潤率和預訂的角度來看，本季度的 Transit 表現給我留下了深刻的印象。你能談談你對 23 年那個細分市場的利潤率的期望嗎？如果你能告訴我們是什麼推動了預訂，以及現在書中即將出現的利潤情況？

Jerry, a couple of things. Number one, we do expect both margin expansion across both segments and revenue expansion on both segments up for the year. On Transit and specific in the fourth quarter, I think there's benefit from really a catch-up in the quarter. Some of that was an element of supply chain disruptions, which we've had. There was certainly the cyber incident, which had a significant impact there in the third quarter. And -- but we also have had, what I'll call, underlying growth for the business.

傑里，有幾件事。第一，我們確實預計今年這兩個部門的利潤率和收入都會增長。關於 Transit 以及第四季度的具體情況，我認為本季度的真正追趕會帶來好處。其中一些是供應鏈中斷的一個因素，我們已經遇到過。當然有網絡事件，它在第三季度產生了重大影響。而且 - 但我們也有，我稱之為業務的潛在增長。

The fundamentals for the business are good. The book-to-bill is above one. The 12-month backlog on a constant current basis is above 14%. Our multiyear backlog on a constant currency basis above 9% and at the same time, while we're pleased with the progress, I think we still have significant work ahead to really simplify the footprint, further improve margins. We will have variation quarter-to-quarter but we're committed to continuing to expand margins here and take action to drive profitable growth in the business.

業務的基本面是好的。訂單出貨比高於一。以恆定電流為基礎的 12 個月積壓訂單超過 14%。我們的多年積壓以固定貨幣為基礎超過 9%，與此同時，雖然我們對進展感到滿意，但我認為我們仍有大量工作要做，以真正簡化足跡，進一步提高利潤率。我們每個季度都會有所不同，但我們致力於繼續擴大這裡的利潤率，並採取行動推動業務的盈利增長。

Great. And separately, Rafael, can I ask about MODs? You folks have been growing deliveries by it looks like mid-teens for a bit here. I'm wondering in '23 as you ramp up on Union Pacific deliveries. Does that growth rate for MOD deliveries accelerate further?

偉大的。另外，Rafael，我可以問一下 MOD 嗎？你們這裡的交付量一直在增加，看起來像十幾歲的樣子。我想知道你在 23 年增加了聯合太平洋公司的交付量。 MOD 交付量的增長率會進一步加快嗎？

And can you remind us from a capacity standpoint, what's the constraint to ramping up production? How much would you be able to ramp up with your existing footprint versus needed to make significant investments for MOD specifically?

您能否從產能的角度提醒我們，提高產量的製約因素是什麼？與專門為 MOD 進行重大投資相比，您能夠增加多少現有足跡？

Jerry, MODs growing double digits. I think, the good news there is the element of multiyear orders that give us visibility in this case, you're all the way out to 2025. So we feel strong about that. And when you have that visibility, you're actually really able to translate that into, what I'll call, efficiencies across the supply chain, which drives both quality and the product. So product performance being up -- the other elements you're able to translate that into also alcohol economies that you're able to pass around to your customer.

傑里，MOD 增長兩位數。我認為，好消息是多年訂單的元素讓我們在這種情況下能夠看到，你一直到 2025 年。所以我們對此感到強烈。當您擁有這種可見性時，您實際上能夠將其轉化為我所說的整個供應鏈的效率，從而推動質量和產品。因此，產品性能得到提升——您可以將其轉化為酒精經濟的其他因素，您可以將其傳遞給客戶。

And I don't see necessary constraints tied to our overall capacity. The one thing I would highlight to you, I mean, we're certainly continuing to operate in a very challenging supply chain environment. There are some areas that have improved, but electronics, I think, is an area that we continue to see bottlenecks there. And some of those will extend throughout the first half of this year at least as far as we look at it. So I think that's the element to keep it in mind.

而且我沒有看到與我們的整體能力相關的必要限制。我要向你強調的一件事，我的意思是，我們肯定會繼續在一個非常具有挑戰性的供應鏈環境中運營。有些領域已經有所改進，但我認為，電子產品是我們繼續看到瓶頸的領域。其中一些將至少在我們看來會延續到今年上半年。所以我認為這是要牢記的要素。

The next question comes from Ken Hoexter with Bank of America.

下一個問題來自美國銀行的 Ken Hoexter。

Just want to get 2 clarifications, I guess, before I jump in. Is this a legacy contract on international locomotives? Or is that just structurally lower margins? And then mix, John, you mentioned, I think, 3 times already that the mix within category like equipment, is that because you have lower margins on mods versus new equipment? Or is there something else that I'm missing? Just if I can understand those two.

我想在我開始之前只想得到 2 個澄清。這是國際機車的遺留合同嗎？或者這只是結構性較低的利潤率？然後混合，John，你提到過，我認為，設備類別內的混合已經是 3 倍，這是因為你在 mods 上的利潤率低於新設備嗎？還是我還缺少其他東西？只要我能理解那兩個。

So Ken, I think that the first question is just the cadence of the way the orders unraveled. So we've got various orders coming -- or various international locomotives being built for around the world. And we have a period of delivery in the back half of '22 in the front half of '23. That's a little bit lower margin, and we're seeing some of that progress through the system.

所以肯，我認為第一個問題只是訂單解開方式的節奏。所以我們收到了各種訂單——或者為世界各地建造的各種國際機車。我們在 22 年的後半年和 23 年的前半年有一段時間的交付。這是一個較低的利潤率，我們正在通過系統看到一些進展。

Other than that, the book is typically lower margin for both MODs and new locomotives versus the company average. So when we talk about things that such as an increase -- of a strong increase in the volume related to that. It translates into lower margins within the groups that house those. So I called out Equipment and Services. Equipment is where we book new locomotives and the Services business kind of houses the modernizations. So with those growing, very strong in the fourth quarter, that brought those margins down in those groups and that's what drove the mix unfavorability.

除此之外，與公司平均水平相比，這本書的 MOD 和新機車的利潤率通常較低。因此，當我們談論諸如增加之類的事情時 - 與此相關的數量大幅增加。它轉化為容納這些的組內的較低利潤。所以我調用了設備和服務。設備是我們預訂新機車的地方，服務業務是現代化的地方。因此，隨著第四季度增長非常強勁，這些群體的利潤率下降，這就是導致組合不利的原因。

Okay. I got that, John. I just thought you meant within the group. But if you just mean one group being Equipment versus Services, then I get that. And then Rafael, you talked about the $600 million kind of run rate per year. I think you got a question on that earlier. Is there any reason you don't give number of MODs or new builds in order to track how you're doing versus that historical level?

好的。我明白了，約翰。我只是以為你的意思是在小組內。但是，如果您只是說一組是設備與服務，那麼我明白了。然後拉斐爾，你談到了每年 6 億美元的運行率。我想你之前有一個問題。你有什麼理由不提供 MOD 或新版本的數量來跟踪你的表現與歷史水平的對比嗎？

Obviously, we know when it was 0, it becomes irrelevant, but as it scales and gets larger, is there still a competitive differentiation in giving that number to understand when we're getting back towards a normal run rate as we get into the few hundred in that mix?

顯然，我們知道當它為 0 時，它變得無關緊要，但隨著它的擴展和變大，在我們進入少數時，給出該數字以了解我們何時恢復正常運行率是否仍然存在競爭差異百在那個組合？

We think there is some especially when it comes down to the number of customers that we have out there. So we do see this as an element of competitive nature that we do not want to not sell disclose. On the other side, I think we're trying to really make sure we provide greater visibility in terms of what we're seeing in terms of the demand, especially with regards to MOD and modernizations and also new locomotives through that process. So does that answer your question?

我們認為有一些特別是當涉及到我們在那裡的客戶數量時。因此，我們確實將此視為我們不想不出售的競爭性質的一個要素。另一方面，我認為我們正在努力確保我們在需求方面提供更大的可見性，特別是在 MOD 和現代化以及通過該過程的新機車方面。那麼這是否回答了您的問題？

Yes. So you're saying even to break it out -- even to put them together, both MODs and locos, it's still, okay.

是的。所以你說即使把它拆開——甚至把它們放在一起，MODs 和 locos，它仍然是，好的。

And the way to think about it today, to a larger extent, we're utilizing the same supply chain for that. So a lot of the plants that were originally really thought around just dedicated to new units. I mean we've got to notes now and really able to flex between those 2. So I think it makes sense to lump those 2 together. And just I think through that process, gives you at least visibility here in terms of how utilization looks like for the company.

而今天思考它的方式，在更大程度上，我們正在為此使用相同的供應鏈。所以很多最初真正想到的工廠只是專門用於新單位。我的意思是我們現在必須做筆記並且真的能夠在這 2 個之間靈活切換。所以我認為將這 2 個混為一談是有意義的。我認為通過這個過程，至少可以讓您了解公司的利用率。

And then my just last one on the -- John, you had a question before about the progress on the expense cost specifically in '23, right? Obviously, you had $46 million. Are you not talking specifically to a number and kind of what's in that guidance just so we can understand. And then you talked about 2 plants being shut down or I think it was 4 plants you mentioned. What are the -- are there big projects coming in '23 that we can kind of look at as far as where you get those synergistic gains?

然後我的最後一個關於 - 約翰，你之前有一個關於 23 年費用成本進展的問題，對嗎？顯然，你有 4600 萬美元。你不是專門針對該指南中的一些內容和某種內容進行討論，以便我們能夠理解嗎？然後你談到了 2 家工廠被關閉，或者我認為你提到的是 4 家工廠。什麼是 - 23 年是否有大型項目，我們可以看看你從哪裡獲得這些協同收益？

Yes, Ken. So the overall program we're expecting a onetime spending of $135 million or investment of $135 million to $165 million. We saw the $46 million in 2022, we would expect 2023 to be higher than that and then we start to taper off in '24 in terms of our investment. And at the same time, we would expect to see those savings escalate. Now were the $43 million of restructuring investment that we made in 2022, $32 million of it came in the fourth quarter.

是的，肯。因此，我們預計整個計劃的一次性支出為 1.35 億美元，或投資為 1.35 億美元至 1.65 億美元。我們在 2022 年看到了 4600 萬美元，我們預計 2023 年會比這更高，然後我們在 24 年開始減少投資。與此同時，我們預計這些節省會增加。現在是我們在 2022 年進行的 4300 萬美元重組投資，其中 3200 萬美元來自第四季度。

And again, we talked about the teams have been very good at lining up the projects. And an example of those were 3 that we were doing, 2 would take out on 4 facilities. They were both in Europe and looking at streamlining some of the network there, manufacturing network and then the distribution in North America. So that they were kicked off in the third quarter. That's when a lot of the reserves are set up, and we'll begin to see the savings in '23 and '24 from those.

再一次，我們談到了團隊非常擅長安排項目。其中一個例子是我們正在做的 3 個，其中 2 個將在 4 個設施上進行。他們都在歐洲，並著眼於簡化那裡的一些網絡、製造網絡，然後是北美的分銷。以至於他們在第三節被拉開序幕。那是建立大量儲備的時候，我們將開始看到 23 年和 24 年的儲蓄。

And are those in SG&A and corporate costs? Or is...

那些在 SG&A 和公司成本中？或者是...

No, no, no. I'm sorry, maybe we're not talking about the same thing. The $46 million is Integration 2.0 savings and they're not in our adjusted numbers. They're in our GAAP numbers. And then we've got a bridge in the financials that show the bridge between adjusted and GAAP. And that's where this investment is recorded -- reflected.

不不不。對不起，也許我們不是在談論同一件事。 4600 萬美元是 Integration 2.0 的節省，它們不在我們調整後的數字中。它們在我們的 GAAP 數字中。然後我們在財務中建立了一座橋樑，顯示了調整後和 GAAP 之間的橋樑。這就是記錄這項投資的地方 - 反映出來。

The next question comes from Matt Elkott with Cowen.

下一個問題來自 Matt Elkott 和 Cowen。

First, just a quick follow-up to the competitive landscape question earlier. Historically, how much have you guys done in the line of upgrading non-Wabtec locomotives and do you think there are opportunities there going forward?

首先，快速跟進之前的競爭格局問題。從歷史上看，你們在升級非 Wabtec 機車方面做了多少工作？您認為未來有機會嗎？

We do have opportunities there. We have call -- started a process around those, and we're currently upgrading units or non-Wabtec. So that's certainly an opportunity that we look at it, and we look at it not just in North America. We're also doing the same internationally.

我們在那裡確實有機會。我們已經打電話 - 圍繞這些開始了一個過程，我們目前正在升級單元或非 Wabtec。所以這當然是我們關注它的機會，我們不僅在北美關注它。我們也在國際上做同樣的事情。

That's good to know Rafael. And speaking of international, I think last month, Siemens announced the 1,200 freight locomotive order with Indian railways. Is that something you guys would have bid on? And just generally, any update on the India opportunity for you guys will be helpful there's a significant infrastructure effort there, and I think they just raised their CapEx for that for the next fiscal year to INR 10 trillion or $120 billion.

很高興認識拉斐爾。說到國際，我想上個月，西門子宣布了與印度鐵路公司的 1,200 台貨運機車訂單。你們會出價嗎？總的來說，任何關於印度機會的最新消息都會對你們有所幫助，因為那裡正在進行重大的基礎設施建設工作，我認為他們剛剛將下一財年的資本支出提高到 10 萬億印度盧比或 1200 億美元。

John and I have the opportunity to be in India end of last year. And I mean, we certainly see, I think, growing momentum in terms of the opportunities there. As you know, we have long-term agreements. We are -- we have, at this point, delivered over 500 units of that agreement. I think there is good opportunities here to further build on that momentum. I think, there is demand for more, transit has a very significant footprint. And I think one that we can take advantage we've been, I think, earlier into the market from that perspective. When it comes down to evaluating order opportunities for the business, that's something we do always.

約翰和我有機會去印度去年底。我的意思是，我認為我們肯定會看到那裡的機會增長勢頭。如您所知，我們有長期協議。目前，我們已經交付了該協議的 500 多個單位。我認為這裡有很好的機會進一步鞏固這一勢頭。我認為，有更多的需求，公交有非常重要的足跡。我認為我們可以利用的一個優勢是，我認為，從這個角度來看，我們更早進入市場。當涉及到評估業務的訂單機會時，這是我們一直在做的事情。

And if we see an opportunity to step into a market with a differentiated product, we'll certainly do that and that's something that we'll continue to evaluate for the business to certainly take from our customers in various parts of the world, a request that we look at some of those opportunities.

如果我們看到有機會以差異化產品進入市場，我們一定會這樣做，並且我們將繼續評估業務，以便肯定會從世界各地的客戶那裡獲得，要求我們正在研究其中的一些機會。

And then the order from Siemens, that was for electric locomotives that we are currently not in the market.

然後是西門子的訂單，那是我們目前不在市場上的電力機車。

Yes. And John, I'm sorry if I missed it. The sequential decrease in the total backlog this quarter and last quarter, did you say anything about that I know it's not significant, but it nonetheless have decreased.

是的。約翰，如果我錯過了，我很抱歉。本季度和上個季度總積壓訂單的連續減少，你有沒有說什麼，我知道這並不重要，但它仍然減少了。

Yes. Matt, it's just the -- our technical term is lumpiness of backlogs. When we look at 2022, we had a very strong year in overall backlog. So they were both up -- but if you look at it on a quarterly basis, there is a lot of volatility. So the first half -- the first quarter in 2022, we're up $0.5 billion, $600 million in the second quarter and then down in the third quarter, about $4 million to $5 million and down [$500 million] in the fourth. So it's just a nature of how the backlogs come in and go out and what we're comparing to and [lapping] so you're always going to see a fair amount of volatility from quarter-to-quarter.

是的。馬特，這只是 - 我們的技術術語是積壓的塊狀。當我們回顧 2022 年時，我們在整體積壓方面度過了非常強勁的一年。所以他們都上漲了——但如果你按季度看的話，就會發現波動很大。所以上半年 - 2022 年第一季度，我們增加了 5 億美元，第二季度增加了 6 億美元，然後在第三季度下降了大約 400 萬到 500 萬美元，第四季度下降了 [5 億美元]。因此，這只是積壓訂單如何進出以及我們正在比較和 [重疊] 的性質，所以你總是會看到每個季度都有相當大的波動。

Matt, one of the things that I think it's very important to keeping in mind of the following. When Nightjet orders that cover now 3 years ahead, you're not going to see those repeat itself every year. And we've got quite a bit of those, which actually provide, I think, a lot of the visibility that I described to you guys. So I'd be careful on looking on I'm going to call separate quarters basis. What we have is, I'll call, stronger coverage than probably we've had since '19, to be very honest, as I look into the next 12 months and specific when it comes down to modernization, that goes out now to 25%.

馬特，我認為牢記以下幾點非常重要。當 Nightjet 提前 3 年訂購現在覆蓋的服務時，您不會看到這些每年都在重複。我們有很多這樣的東西，我認為，它們實際上提供了我向你們描述的很多可見性。所以我會小心看待我要打電話給單獨的宿舍。我們所擁有的，我會說，比我們自 19 年以來可能擁有的覆蓋範圍更廣，老實說，當我展望未來 12 個月，具體到現代化時，現在已經達到 25 %。

And for new units, I mean, as we have some long-term agreements, I mean some of those goes way out there, especially in the case of India.

對於新單位，我的意思是，由於我們有一些長期協議，我的意思是其中一些已經存在，特別是在印度的情況下。

The next question comes from Dillon Cumming with Morgan Stanley.

下一個問題來自摩根士丹利的 Dillon Cumming。

I just wanted to play devil's advocate for a second on the kind of new local outlook. I think a lot of the factors that you mentioned in terms of elevated fleet age, right desire to kind of increase fuel efficiency they've been present in the market for a while. So in terms of the visibility that you have to get to that kind of above 600 unit milestone you laid out, I guess, is my short kind of question is like what time -- like why is this time different? Right? Are you having conversations with Class 1s that are giving you visibility to that number? Or what's actually driving the confidence in reaching that milestone?

我只是想在這種新的地方觀上扮演魔鬼的擁護者一秒鐘。我認為你提到的很多因素都在提高機隊年齡方面，正確地希望提高燃油效率，它們已經在市場上存在了一段時間。因此，就您必須達到您設定的 600 個以上單位里程碑的可見性而言，我想，我的簡短問題是什麼時候——比如為什麼這次不同？正確的？您是否正在與讓您了解該數字的 1 級人員進行對話？或者是什麼真正推動了實現這一里程碑的信心？

So I'll go back to my early comments, I'm not going to speculate on how the recovery or volume I have looks like. What I can tell you is we've got great coverage done we had in the business especially if I go back like 2019, and that's represented by backlog we have. I think the other point we wanted to make there is that we're still at trough levels and if you connect out to the age of the fleet, if you connect at -- to the elements of how you continue to drive productivity, if you start thinking about obsolescence of the components into that fleet together with the component of the ESG, I think you've got a lot of opportunity here to continue to build out on that momentum. That's really the point that we wanted to make.

所以我會回到我早期的評論，我不會推測我的複蘇或數量如何。我可以告訴你的是，我們已經完成了我們在業務中所做的大量報導，特別是如果我像 2019 年那樣回去的話，這就是我們的積壓工作。我認為我們想說的另一點是，我們仍處於低谷水平，如果你連接到機隊的年齡，如果你連接到 - 如何繼續提高生產力的要素，如果你開始考慮將組件與 ESG 的組件一起過時進入該機隊，我認為您在這裡有很多機會繼續建立這種勢頭。這確實是我們想要表達的觀點。

Got you. And if I can just ask a little more on the digital growth in the quarter. It was super strong. I know there was some M&A tailwind in there as well. But considering it was one of the last verticals are going to recover post-COVID. I know a lot of the Class 1s had pushed out investment in that area now seems to be really materializing in your own revenue profile. If you want to assume a barricades for Class 1 CapEx and rail volumes in next year, just how durable could that digital growth be just considering that, that investment has been pushed out to the right for so long on the part of the Class 1s.

明白了如果我能多問一些關於本季度數字增長的問題。它非常強大。我知道那裡也有一些併購順風。但考慮到這是最後一個將在 COVID 後恢復的垂直行業之一。我知道很多 1 級已經推出了對該領域的投資，現在似乎真的在您自己的收入狀況中實現了。如果你想假設明年 1 類資本支出和鐵路運輸量存在障礙，那麼數字增長的持久性只是考慮到這一點，即 1 類投資已經被推到右邊這麼久了。

So I'll start with double digits, growth off last year. We see the opportunity to drive double digits again for this year. We had about $1 billion in orders for Digital Electronics in 2022. I think this is, well, number one, a significant increase versus the year before. And book-to-bill was really above -- very positive, in fact, for '21 and '22, one of the highest between our businesses. Some of these are multiyear agreements. So no different than the past couple of years. We need to drive convertibility of orders in '23 to cover that.

所以我將從兩位數開始，去年的增長有所下降。我們看到了今年再次實現兩位數增長的機會。 2022 年，我們的數字電子產品訂單約為 10 億美元。我認為這是第一，與前一年相比有了顯著增長。而且訂單出貨比確實高於 - 事實上，對於 21 年和 22 年來說非常積極，這是我們業務中最高的之一。其中一些是多年協議。所以與過去幾年沒有什麼不同。我們需要在 23 年推動訂單的可兌換性來解決這個問題。

North America continues to improve Internationally, the pipeline continues to be very strong. I think some progress made here on recurring revenues. So I think we talked about that a little bit into the business. We've got some additional work to be done there. And supply chain has improved the bet into the fourth quarter here, and that's, I think, some of the goodness you saw. But as I mentioned, I think we're continuing to see tough dynamics in supply chain in the first half of the year in terms of chip shortages and semicon doctors and some auto ones.

北美繼續改善國際，管道繼續非常強大。我認為這裡在經常性收入方面取得了一些進展。所以我想我們在業務中討論了一點。我們還有一些額外的工作要做。供應鏈已經將賭注提高到第四季度，我認為這是你看到的一些好處。但正如我所提到的，我認為我們將在今年上半年繼續看到供應鏈在芯片短缺、半導體醫生和一些汽車醫生方面的艱難動態。

Next question comes from Steve Barger with KeyBanc Capital Markets.

下一個問題來自 KeyBanc Capital Markets 的 Steve Barger。

On the guidance slide, it looks like you expect growth in all the categories you list. Are those rank ordered by growth rate? And do you expect anything in the portfolio will contract in 2023?

在指導幻燈片上，您似乎希望列出的所有類別都有增長。這些排名是按增長率排序的嗎？你預計投資組合中的任何東西會在 2023 年收縮嗎？

They're not listed in rank order. We have talked out at Investor Day that we do expect equipment to be the fastest growing over the next several years. We certainly saw that in 2022 but they're not listed in rank order, Steve.

它們未按排名順序列出。我們在投資者日已經說過，我們確實希望設備在未來幾年內增長最快。我們當然在 2022 年看到了這一點，但他們沒有按排名順序列出，史蒂夫。

Can you give us any more color around the growth rates that you do expect for those categories?

你能給我們更多關於你對這些類別的預期增長率的顏色嗎？

No, we don't break out that. We've talked about the $8.7 billion to $9 million is growth of 4% to 8%. We expect that to be achieved through both our Freight segment as well as Transit to both be up in revenue and in margin but we don't break out the individual pieces of that.

不，我們不會打破那個。我們已經談到了 87 億美元到 900 萬美元的增長 4% 到 8%。我們希望通過我們的貨運部門和運輸部門實現收入和利潤率的雙雙增長，但我們不會分解其中的各個部分。

Can you tell us how much of the 6% projected growth is price?

您能否告訴我們 6% 的預計增長中有多少是價格？

No, no, we don't have that broken out and we don't typically break that out as well. As we look to next year, we got a lot of uncertainties, and we feel very good about the overall margin growth or revenue growth at a midpoint of 6%.

不，不，我們沒有打破它，而且我們通常也不會打破它。展望明年，我們有很多不確定性，我們對整體利潤率增長或收入增長 6% 的中點感到非常滿意。

But if as to add color, I mean, of course, double-digit growth sharing to the services, MODs really being a key driver of that. On Equipment, I mean, we continue to see the momentum internationally. I think the question, it's really more around the speed in which you convert some of these orders, but there's certainly a very robust pipeline there. And Digital, I just made some of the comments here. So overall, I think we have the opportunity here to drive both revenue and margin expansion for our businesses, and that's what we're focused on, and that's really across the board.

但是，如果要增加色彩，我的意思是，當然，兩位數的增長分享給服務，MOD 確實是其中的關鍵驅動力。在設備方面，我的意思是，我們繼續在國際上看到這種勢頭。我認為這個問題實際上更多地圍繞著你轉換其中一些訂單的速度，但那里肯定有一個非常強大的管道。而 Digital，我只是在這裡發表了一些評論。所以總的來說，我認為我們有機會推動我們業務的收入和利潤擴張，這就是我們關注的重點，而且確實是全面的。

Just to make sure we're thinking correctly about the cadence comments. If I assume a first half Freight margin similar to 4Q, and Transit margin around the average of last year. It looks like first half EPS will be down somewhere mid- to high single digit versus 2022. Is that how you're thinking about that first half progression?

只是為了確保我們正確考慮節奏註釋。如果我假設上半年的運費利潤率與第四季度相似，而運輸利潤率與去年的平均水平相當。與 2022 年相比，上半年每股收益似乎會下降到中高個位數。這就是你對上半年進展的看法嗎？

Steve, we're not providing quarterly EPS guidance. Suffice to say that during 2023, we expect higher revenue growth in the first half versus the second half, and we expect full year margin growth to largely come in the second half of the year.

史蒂夫，我們不提供季度每股收益指導。可以這麼說，在 2023 年期間，我們預計上半年的收入增長將高於下半年，我們預計全年利潤率增長主要出現在下半年。

Understood. But given the mix issues that you're talking about, should we assume that the first half Freight margin is similar to 4Q?

明白了。但是考慮到您正在談論的混合問題，我們是否應該假設上半年的運費利潤率與第四季度相似？

No, we're not providing that look. We expect there'll be more mix pressure in the first half, and that will result in more margin growth coming from the second half of the year.

不，我們不提供那種外觀。我們預計上半年會有更多的混合壓力，這將導致下半年利潤率增長更多。

This concludes our question-and-answer session. I would like to turn the conference back over to Kristine Kubacki for any closing remarks.

我們的問答環節到此結束。我想將會議轉回 Kristine Kubacki 的閉幕詞。

Thank you, operator. Thank you, everyone, for your participation today. We look forward to speaking with you again next quarter.

謝謝你，運營商。謝謝大家今天的參與。我們期待下個季度再次與您交談。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。