惠而浦 (WHR) 2024 Q2 法說會逐字稿

Good morning, and welcome to Whirlpool Corporation's second-quarter 2024 earnings call. Today's call is being recorded.

早安，歡迎參加惠而浦公司 2024 年第二季財報電話會議。今天的通話正在錄音。

Joining me today are Marc Bitzer, our Chairman and Chief Executive Officer; and Jim Peters, our Chief Financial and Administrative Officer. Our remarks today track with a presentation available on the Investors section of our website at whirlpoolcorp.com.

今天加入我的還有我們的董事長兼執行長 Marc Bitzer；以及我們的財務和行政官 Jim Peters。我們今天的言論與我們網站 Whirlpoolcorp.com 投資者部分的簡報一致。

Before we begin, I wanted to remind you that as we conduct this call, we will be making forward-looking statements to assist you in better understanding Whirlpool Corporation's future expectations. Our actual results could differ materially from these statements due to many factors discussed in our latest 10-K, 10-Q, and other periodic reports.

在開始之前，我想提醒您，在我們進行本次電話會議時，我們將做出前瞻性陳述，以幫助您更好地了解惠而浦公司的未來期望。由於我們最新的 10-K、10-Q 和其他定期報告中討論的許多因素，我們的實際結果可能與這些陳述有重大差異。

We also want to remind you that today's presentation includes the non-GAAP measures outlined in further detail at the beginning of our earnings presentation. We believe these measures are important indicators of our operations as they exclude items that may not be indicative of results from our ongoing business operations.

我們也想提醒您，今天的演示包括我們在收益演示開始時進一步詳細概述的非公認會計準則衡量標準。我們相信這些指標是我們營運的重要指標，因為它們排除了可能無法表明我們持續業務營運結果的項目。

We also think the adjusted measures will provide you with a better baseline for analyzing trends in our ongoing business operations. Listeners are directed to the supplemental information package posted on the Investor Relations section of our website for the reconciliation of non-GAAP items to the most directly comparable GAAP measures. (Event Instructions)

我們也認為調整後的措施將為您提供更好的基準來分析我們正在進行的業務營運的趨勢。聽眾可閱讀我們網站投資者關係部分發布的補充資訊包，以將非公認會計準則項目與最直接可比較的公認會計準則衡量指標進行核對。 （活動須知）

With that, I'll turn it over to Marc.

有了這個，我會把它交給馬克。

Thanks, Scott, and good morning, everyone. We demonstrated strong sequential global margin expansion in the second quarter. This global margin expansion of 100 basis points is an important step towards continued margin expansion throughout 2024. MDA North America also delivered sequential margin expansion supported by our pricing actions announced in our first-quarter earnings call.

謝謝斯科特，大家早安。我們在第二季度展示了強勁的全球利潤率連續成長。全球利潤率擴大 100 個基點，是邁向 2024 年持續利潤率擴張的重要一步。

Our pricing actions in North America delivered as expected with sell-through trends improving throughout the quarter. This reflects our execution capabilities and confirms the strength of our products and brands, and we're confident in our ability to execute with pricing actions by maintaining our MDA North America market share for the full year. We continue to be very pleased with the performance of our SDA global and international MDA business.

我們在北美的定價行動符合預期，整個季度的銷售趨勢有所改善。這反映了我們的執行能力，並證實了我們產品和品牌的實力，我們對透過維持全年 MDA 北美市場份額來執行定價行動的能力充滿信心。我們仍然對 SDA 全球和國際 MDA 業務的表現感到非常滿意。

Our SDA global business saw strong top-line growth and margin expansion as we benefited from the momentum of new product launches and continue to grow our direct-to-consumer business. We're excited about the future potential of this business.

我們的 SDA 全球業務實現了強勁的收入成長和利潤成長，因為我們受益於新產品發布的勢頭，並繼續發展我們的直接面向消費者的業務。我們對這項業務的未來潛力感到興奮。

In our MDA Latin America and MDA Asia businesses, we continue to gain share in key countries, and we continue to see meaningful long-term growth potential in those businesses. We were disciplined with our cost management and successfully completed our organizational simplification this quarter, putting us on track to achieve our full-year cost takeout guide of $300 million to $400 million. We are confident there are additional cost takeout opportunities ahead, as we shared at our Investor Day, such as manufacturing supply chain efficiencies including automation across our business, and continuing to optimize our input costs back to pre-COVID levels.

在我們的 MDA 拉丁美洲和 MDA 亞洲業務中，我們繼續在主要國家/地區獲得份額，並且我們繼續看到這些業務具有重大的長期成長潛力。我們嚴格執行成本管理，並在本季度成功完成了組織簡化，使我們有望實現 3 億至 4 億美元的全年成本支出目標。正如我們在投資者日分享的那樣，我們相信未來還會有額外的成本削減機會，例如製造供應鏈效率，包括整個業務的自動化，以及繼續優化我們的投入成本至新冠疫情前的水平。

Turning to our full-year guidance, we are reiterating flat net sales of $16.9 billion driven by new product launches, strong replacement demand, previously announced MDA North America pricing actions, and continued strength in our international businesses, offsetting the challenging macro environment in the US given elevated mortgage rates, which have led to continued weakness in home sales and overall discretionary demand.

談到我們的全年指導，我們重申淨銷售額為169 億美元，這是由新產品推出、強勁的替換需求、之前宣布的MDA 北美定價行動以及我們國際業務的持續強勁所推動的，抵消了充滿挑戰的宏觀環境。

We are revising our ongoing EBIT margin to 6% from 6.8% previously as we expect continued discretionary demand pressure from a soft housing market impacting full-year price mix negatively. However, at the same time, the previously announced pricing and cost takeout actions are expected to deliver sequential margin expansion with a solid exit rate of approximately 7.5% ongoing EBIT margin in Q4. In turn, we expect to deliver $12 ongoing earnings per share this year. As we look ahead, we are confident in our strategy and the favorable long term fundamentals of our business.

我們將目前的息稅前利潤率從先前的 6.8% 修改為 6%，因為我們預計疲軟的房地產市場將持續帶來可自由支配的需求壓力，對全年價格結構​​產生負面影響。然而，與此同時，先前宣布的定價和成本削減行動預計將帶來連續的利潤率擴張，第四季度的持續息稅前利潤率將保持在約 7.5% 的穩定退出率。反過來，我們預計今年每股持續收益為 12 美元。展望未來，我們對我們的策略和有利的長期業務基本面充滿信心。

Our view of the housing market remains unchanged, given the well documented structural under supply of houses in the US and existing home sales at multi-decade lows, elevated home equity values which are near all-time highs, and our strong position with eight of the top 10 US builders. We are very well-positioned to benefit from the eventual housing rebound and we continue to innovate and have a strong lineup of new products this year that I'm personally excited about, which will support the strength of our brands.

我們對房地產市場的看法保持不變，因為有據可查的美國房屋供應結構性不足、現有房屋銷售處於數十年來的低點、房屋淨值價值接近歷史高點，以及我們在八個房屋中的強勢地位。我們處於有利位置，可以從最終的房地產反彈中受益，我們將繼續創新，今年將推出一系列強大的新產品，我個人對此感到興奮，這將支持我們品牌的實力。

Turning to slide 6, I will provide an overview of our second-quarter results. Organic net sales, excluding the Europe divestiture, increased by over 1% in the quarter. The growth across our international businesses and SDA global offset the expected decline in North America, which was also impacted by the carryover of the second-half 2023 normalized promotion environment but still resulted in unfavorable price mix in the second quarter along with continued suppressed discretionary demand. This negative macro environment was partially offset by our pricing actions taken within the quarter, which are fully on track. We delivered ongoing earnings per share of $2.39 with ongoing EBIT margin of 5.3%, representing solid sequential margin expansion of 100 basis points, which we expect to continue throughout the second half of the year.

轉向幻燈片 6，我將概述我們第二季的業績。不包括歐洲資產剝離的有機淨銷售額本季成長超過 1%。我們的國際業務和SDA 全球業務的成長抵消了北美地區的預期下降，北美地區的下降也受到2023 年下半年正常化促銷環境的影響，但仍然導致第二季度的價格結構不利，且可自由支配需求持續受到抑制。我們在本季採取的定價行動部分抵銷了這種負面的宏觀環境，這些行動完全步入正軌。我們持續實現每股收益 2.39 美元，持續息稅前利潤率為 5.3%，這意味著利潤率連續 100 個基點穩步擴張，我們預計這種情況將持續到今年下半年。

Within the quarter, we made meaningful progress in our working capital and inventory management, resulting in $275 million of cash generation. We remain confident in our ability to improve free cash flow in the second half of the year to deliver approximately $500 million on a full-year base.

本季度內，我們在營運資金和庫存管理方面取得了有意義的進展，產生了 2.75 億美元的現金。我們對下半年改善自由現金流、全年交付約 5 億美元的能力仍然充滿信心。

As a reminder, free cash flow year to date was negatively impacted by non-recurring cash outflows associated with the Europe transaction of $250 million to $300 million in the first quarter. This cash consumption will no longer impact our results in 2025, structurally strengthening our free cash flow delivery going forward. Our free cash flow delivery enables us to continue to return cash to shareholders with our capital allocation priorities unchanged.

需要提醒的是，今年迄今的自由現金流受到與第一季 2.5 億至 3 億美元歐洲交易相關的非經常性現金流出的負面影響。這種現金消耗將不再影響我們 2025 年的業績，從而從結構上加強我們未來的自由現金流交付。我們的自由現金流交付使我們能夠在資本配置優先順序不變的情況下繼續向股東返還現金。

Finally, continuing our nearly 70-year history of steady or increasing dividends, we paid $1.75 per share in the second quarter and expect to return $400 million to shareholders in the form of dividends this year.

最後，延續我們近 70 年穩定或增加股息的歷史，我們在第二季支付了每股 1.75 美元，預計今年將以股息的形式向股東返還 4 億美元。

Turning to slide 7, I will review second-quarter ongoing EBIT margin drivers. Price mix impacted margin unfavorable by 300 basis points of negative mix resulting from lower discretionary demand. And as we look ahead, we expect the second-half price mix comparison to sequentially improve have already executed pricing actions in addition to lapping a more normalized promotional environment from the second half of 2023,

轉向投影片 7，我將回顧第二季持續的息稅前利潤率驅動因素。由於可自由支配需求下降，價格組合對利潤率產生了不利的 300 個基點的負面影響。展望未來，我們預計下半年價格組合比較將逐步改善，除了從 2023 年下半年開始形成更正常化的促銷環境之外，我們還已經執行了定價行動，

Our cost takeout actions delivered 100 basis points margin expansion led by the completion of our organizational simplification actions. As expected, raw materials did not have a meaningful impact on the quarter. We continue to invest in marketing and technology, supporting product launches such as a fully and semiautomatic KitchenAid espresso machine.

由於組織簡化行動的完成，我們的成本削減行動使利潤率擴大了 100 個基點。正如預期，原材料並未對本季產生重大影響。我們繼續投資於行銷和技術，支援全自動和半自動 KitchenAid 濃縮咖啡機等產品的發布。

Finally, foreign currency negatively impacted margin as the Brazilian real and the Canadian dollar experienced some weakening relative to the US dollar. Ultimately, we delivered 100-base point ongoing EBITDA margin expansion sequentially to 5.3% in the second quarter.

最後，由於巴西雷亞爾和加幣相對於美元有所走弱，外幣對利潤率產生了負面影響。最終，我們第二季的 EBITDA 利潤率持續成長 100 個基點，達到 5.3%。

And now, I will turn it over to Jim to review our segment results and full-year guidance.

現在，我將把它交給吉姆來審查我們的部門業績和全年指導。

Thanks, Marc. Good morning everyone. Turning to slide 8, I'll review second-quarter results for our MDA North America business.

謝謝，馬克。大家，早安。轉向幻燈片 8，我將回顧我們 MDA 北美業務的第二季業績。

Net sales were down 6% year over year driven by unfavorable price mix. Our pricing actions are fully on track as evidenced by price mix turning positive in June. These actions drove approximately 70 basis points of sequential EBIT margin expansion. Overall, the segment delivered a 6.3% EBIT margin for the quarter. We expect that our pricing and cost takeout actions will continue to drive greater than 100 basis points of sequential margin expansion each quarter in the second half of 2024 and expect a Q4 EBIT margin of approximately 9%.

由於不利的價格組合，淨銷售額較去年同期下降 6%。我們的定價行動完全步入正軌，六月價格組合轉正就證明了這一點。這些舉措帶動息稅前利潤率連續成長約 70 個基點。總體而言，該部門本季的息稅前利潤率為 6.3%。我們預計，我們的定價和成本削減行動將繼續推動 2024 年下半年每季的利潤率連續成長 100 個基點以上，並預計第四季的息稅前利潤率約為 9%。

Turning to slide 9, I will provide an update on our pricing actions and cost actions, which remain on track. As you may recall, last quarter, we discussed the promotional investments in the US that were not achieving the expected incremental volume lift. The current environment of strong replacement demand typically brings a lower mix and limits promotional effectiveness. To address the environment, we announced a 5% weighted average increase to our promotional pricing programs in MDA North America, which went into effect on April 25, demonstrating our commitment to only participate in value-creating promotions. We are confident in our pricing actions.

轉向幻燈片 9，我將提供有關我們仍在按計劃進行的定價行動和成本行動的最新資訊。您可能還記得，上個季度，我們討論了在美國的促銷投資，但這些投資並未實現預期的增量提升。當前強勁的更換需求環境通常會帶來較低的產品組合併限制促銷效果。為了解決環境問題，我們宣布將 MDA 北美地區的促銷定價計劃加權平均提高 5%，該計劃於 4 月 25 日生效，這表明我們致力於只參與創造價值的促銷活動。我們對我們的定價行動充滿信心。

Although we have continued to see discretionary demand impacted by a depressed existing home sales and a weary consumer, we have already driven 70 basis points of sequential margin expansion in the second quarter and expect the net margin benefit from our price actions to be fully realized in the third quarter. As noted in our first-quarter earnings, with persistently high inflation impacting manufacturing and supply chain, we are experiencing a slower realization of our incremental cost actions. While we remain on track to deliver $300 million to $400 million of cost savings in 2024, we continue to trend towards the lower end of the range. The North America MDA portion of this is approximately 60%.

儘管我們繼續看到低迷的現有房屋銷售和疲倦的消費者影響了可自由支配的需求，但我們已經在第二季度推動了70 個基點的連續利潤率擴張，並預計我們的價格行動帶來的淨利率收益將在2019 年充分實現。正如我們第一季收益中所指出的，由於持續高通膨影響製造和供應鏈，我們的增量成本行動的實現速度正在放緩。雖然我們仍有望在 2024 年實現 3 億至 4 億美元的成本節約，但我們仍傾向於該範圍的下限。其中北美 MDA 部分約為 60%。

We completed our organizational simplification in early May and expect to fully realize the margin benefit from these actions in the third quarter. Despite the macro environment, we delivered approximately $150 million of cost takeout globally in the first half of 2024, and we expect our manufacturing and supply chain initiatives to deliver the majority of the cost takeout in the second half.

我們於五月初完成了組織簡化，並預計在第三季充分實現這些行動的利潤效益。儘管面臨宏觀環境，我們在 2024 年上半年在全球範圍內實現了約 1.5 億美元的成本削減，我們預計我們的製造和供應鏈計劃將在下半年實現大部分成本削減。

Turning to slide 10, I'll review the results of our MDA Latin America business. The segment saw strong net sales growth of 15% year over year, excluding currency, driven by industry growth and continued share gains in both Brazil and Mexico, more than offsetting unfavorable price mix. We delivered a solid EBIT margin of 5.8% in the quarter.

轉向幻燈片 10，我將回顧我們 MDA 拉丁美洲業務的結果。在產業成長以及巴西和墨西哥市場佔有率持續成長的推動下，該細分市場淨銷售額較去年同期強勁成長 15%（不計貨幣），足以抵銷不利的價格組合。本季我們的息稅前利潤率為 5.8%。

Turning to slide 11, I'll review the very strong quarter from our MDA Asia business. The segment saw significant net sales growth of 21% year over year, excluding currency, driven by industry growth and continued share gains. We delivered a 6.2% EBIT margin driven by our strong cost actions and fixed cost leverage, delivering significant year-over-year and sequential margin expansion.

轉向幻燈片 11，我將回顧我們 MDA 亞洲業務非常強勁的季度。在產業成長和持續份額成長的推動下，該部門的淨銷售額較去年同期大幅成長 21%（不計貨幣）。在我們強有力的成本行動和固定成本槓桿的推動下，我們實現了 6.2% 的息稅前利潤率，實現了同比和連續利潤率的大幅增長。

Turning to slide 12, I'll review the solid results for our SDA global business. Despite industry decline, net sales increased 12%, excluding currency, year over year driven by new product launches and growth in our direct-to-consumer business. We delivered a solid EBIT margin of 13.9% through cost actions and volume growth, partially offset by incremental marketing investments for our recent espresso product launches. The SDA business is well-positioned for the selling season in the second half of the year, where we expect approximately two-thirds of its demand and profitability to occur.

轉向幻燈片 12，我將回顧我們 SDA 全球業務的紮實成果。儘管產業下滑，但在新產品推出和直接面向消費者業務成長的推動下，淨銷售額（不計貨幣）年增 12%。透過成本行動和銷售成長，我們實現了 13.9% 的穩定息稅前利潤率，但部分被我們最近推出的濃縮咖啡產品的增量行銷投資所抵消。 SDA 業務在下半年的銷售季節處於有利位置，我們預計其需求和盈利能力將在下半年實現。

Turning to slide 13, I'll review our revised full-year 2024 guidance. Our net sales guidance of $16.9 billion is unchanged. We are revising our full-year ongoing earnings per share to approximately $12 and refining our free cash flow guidance to approximately $500 million. In addition, our product mix in North America is impacted by low consumer sentiment and suppressed existing home sales. As a result, we now expect to deliver a full-year ongoing EBIT margin of 6%.

轉向投影片 13，我將回顧我們修訂後的 2024 年全年指引。我們 169 億美元的淨銷售額指引不變。我們正在將全年持續每股收益修訂為約 12 美元，並將自由現金流指引細化為約 5 億美元。此外，我們在北美的產品組合受到消費者信心低迷和成屋銷售抑制的影響。因此，我們現在預計全年持續息稅前利潤率為 6%。

Our guidance also includes updated expectations for our adjusted effective tax rate. Now that we have closed the Europe transaction, we are able to more appropriately estimate the benefits of our tax planning strategies. We now expect an ongoing full-year tax rate of approximately negative 8%.

我們的指導還包括對調整後的有效稅率的最新預期。現在我們已經完成了歐洲交易，我們能夠更適當地估計我們的稅務規劃策略的好處。我們現在預計全年稅率將持續約為負 8%。

On slide 14, we show the strong progression of our quarterly ongoing EBIT margin. The sequential margin expansion of approximately 100 basis points quarterly in the second half is driven by on-track MDA North America pricing actions, incremental global cost takeout actions such as part complexity reductions and manufacturing efficiencies, continued strength across our international businesses, and SDA global seasonality. Our decisive actions and operational execution are expected to deliver a Q4 exit EBIT margin of approximately 7.5%.

在投影片 14 上，我們展示了季度持續息稅前利潤率的強勁成長。下半年，每季利潤率持續成長約100 個基點，這是由MDA 北美定價行動、增量全球成本削減行動（例如降低零件複雜性和提高製造效率）、我們國際業務的持續實力以及SDA 全球推動的。我們的果斷行動和營運執行預計將使第四季的退出息稅前利潤率達到約 7.5%。

Turning to slide 15, we show the drivers of our updated full-year ongoing EBIT margin guidance. We have updated our expectation of price mix by 25 basis points to a negative 200-basis-point impact, reflecting a negative product mix driven by lower-than-expected discretionary demand in the US that is expected to continue into the second half.

轉向投影片 15，我們展示了更新後的全年持續息稅前利潤率指引的驅動因素。我們將價格組合預期上調了 25 個基點，至負面影響 200 個基點，反映出美國可自由支配需求低於預期導致的產品組合負面影響預計將持續到下半年。

Net cost takeout reflects the expectation of delivering on the lower end of the $300 million to $400 million range. Lastly, currency is anticipated to have a slight impact for the full year at 25 basis points due to weakening Brazil real and Canadian dollar. We now expect an ongoing EBIT margin of approximately 6% for the year.

淨成本支出反映了實現 3 億至 4 億美元範圍下限的預期。最後，由於巴西雷亞爾和加元走弱，預計全年貨幣匯率將受到 25 個基點的輕微影響。我們目前預計今年的息稅前利潤率將持續維持在 6% 左右。

Turning to slide 16, I'll review our updated segment expectations. Globally, we now expect the total industry to be approximately flat. In MDA North America, the recent restatement of AHAM information has created some quarterly comparability issues; however, we are in alignment with the year-to-date reported AHAM results of down approximately 2% year over year. This links well to the sell-through results we have experienced in the first half of 2024.

轉向幻燈片 16，我將回顧我們更新後的細分市場預期。在全球範圍內，我們現在預計整個行業將大致持平。在 MDA 北美地區，最近對 AHAM 資訊的重述造成了一些季度可比性問題；然而，我們與今年迄今報告的 AHAM 結果一致，年減了約 2%。這與我們在 2024 年上半年所經歷的銷售結果密切相關。

Replacement demand remains strong; however, discretionary demand continues to experience macro headwinds. As a result, we expect the industry to remain approximately flat for the year. MDA Latin America has seen significant demand recovery in both Brazil and Mexico, more than offsetting a very challenging economic environment that persists in Argentina. We now expect the industry to be up 5% to 7% in Latin America. MDA Asia industry remains unchanged as we continue to see demand improvement in India, as expected.

更換需求依然強勁；然而，可自由支配需求持續面臨宏觀阻力。因此，我們預計該行業今年將基本持平。 MDA 拉丁美洲地區巴西和墨西哥的需求顯著復甦，足以抵消阿根廷持續存在的極具挑戰性的經濟環境。我們現在預計該產業在拉丁美洲將成長 5% 至 7%。 MDA 亞洲產業保持不變，因為我們繼續看到印度的需求如預期有所改善。

Finally, SDA global continues to be impacted by discretionary demand weakness in the US and Europe, resulting in the expected industry for the year to be approximately flat. We have adjusted EBIT margin to reflect the discretionary demand softness in the US negatively impacting price mix.

最後，SDA Global 繼續受到美國和歐洲可自由支配需求疲軟的影響，導致今年的預期產業大致持平。我們調整了息稅前利潤率，以反映美國可自由支配的需求疲軟對價格組合的負面影響。

We expect full-year MDA in North America margins of approximately 7%, with a Q4 EBIT margin of approximately 9%. With the strong share growth and cost actions in MDA Latin America and MDA Asia, we now expect higher EBIT margins of approximately 7% and approximately 4%, respectively. SDA global's strong EBIT margin of 15.5% remains unchanged.

我們預計北美全年 MDA 利潤率約為 7%，第四季度息稅前利潤率約為 9%。隨著 MDA 拉丁美洲和 MDA 亞洲的強勁份額成長和成本行動，我們現在預計息稅前利潤率將分別提高約 7% 和約 4%。 SDA Global 15.5% 的強勁息稅前利潤率維持不變。

Turning to slide 17, I'll review our free cash flow guidance. We have updated our cash earnings and other operating accounts consistent with full-year EBIT guidance. We have further refined our capital expenditure expectations and remain confident in achieving 100-plus new products launched in 2024.

轉向幻燈片 17，我將回顧我們的自由現金流指引。我們已根據全年息稅前利潤指引更新了現金收益和其他營運帳戶。我們進一步細化了資本支出預期，對2024年推出100多種新產品仍有信心。

In the second quarter, we made meaningful progress on our working capital leading to an improvement of over $200 million of cash versus the first quarter. As we move through the year, we expect to further reduce inventories. We also expect to see accounts receivable and accounts payable return to similar levels as the end of 2023, allowing us to deliver sequential free cash flow from working capital throughout the back half of the year.

第二季度，我們的營運資金取得了有意義的進展，現金比第一季增加了 2 億多美元。隨著今年的進展，我們預計庫存將進一步減少。我們也預期應收帳款和應付帳款將恢復到 2023 年底的相似水平，使我們能夠在今年下半年從營運資本中實現連續的自由現金流。

Finally, we updated the restructuring impact of the previously announced organizational simplification actions. Overall, we expect free cash flow of approximately $500 million for the year.

最後，我們更新了先前宣布的組織簡化行動的重組影響。總體而言，我們預計今年的自由現金流約為 5 億美元。

Turning to slide 18, let me recap our commitment to our capital allocation priorities. We've completed actions to strengthen our balance sheet in 2024. In the first quarter, we completed the sale of 24% of Whirlpool of India's outstanding shares while retaining a majority interest. Additionally, the planned divestiture of our Brastemp-branded water filtration business in Brazil closed on July 1, generating over $50 million of cash. Combined, these two actions generated more than $500 million of cash.

轉向投影片 18，讓我回顧我們對資本配置優先事項的承諾。我們已經完成了 2024 年強化資產負債表的行動。此外，巴西 Brastemp 品牌水過濾業務的計畫剝離已於 7 月 1 日結束，產生了超過 5,000 萬美元的現金。這兩項行動總共產生了超過 5 億美元的現金。

Coupled with our beginning cash on hand of $1.6 billion and free cash flow generation of approximately $500 million, we are well-positioned to pay dividends of approximately $400 million in 2024 and continue our debt reduction initiatives, demonstrated by a $500 million term loan repayment in April. With these actions, we are fully on track to deliver our 2024 capital allocation priorities.

加上我們的期初手頭現金為16 億美元，自由現金流量約為5 億美元，我們完全有能力在2024 年支付約4 億美元的股息，並繼續我們的債務削減舉措，這從2024 年償還5億美元的定期貸款就可以看出。透過這些行動，我們完全有望實現 2024 年資本配置優先事項。

Now, I will turn the call over to Marc.

現在，我將把電話轉給馬克。

Thanks, Jim. Turning to slide 19, let me recap what you heard today. We are pleased to have delivered sequential margin expansion globally and in North America, primarily driven by our pricing actions. We continue to navigate a soft macro environment, but we're executing well and are confident in our strategy.

謝謝，吉姆。前往投影片 19，讓我回顧一下您今天聽到的內容。我們很高興在全球和北美實現利潤率連續成長，這主要是由我們的定價行動推動的。我們繼續應對疲軟的宏觀環境，但我們執行良好，並對我們的策略充滿信心。

In 2021 and 2022, we incurred over $2.5 billion of cost inflation, and we have been relentless in addressing these cost challenges. We took out $500 million of fixed costs since 2019. And with the organizational simplification delivering $100 million in cost savings alone in 2024, we are on track to achieve $300 million to $400 million of cost savings for the year. And as we look forward, we continue to see significant opportunity to take additional cost out of our products through input costs, manufacturing, and supply chain.

2021 年和 2022 年，我們發生了超過 25 億美元的成本通膨，我們一直在不懈地應對這些成本挑戰。自 2019 年以來，我們削減了 5 億美元的固定成本。展望未來，我們繼續看到透過投入成本、製造和供應鏈降低產品額外成本的重大機會。

At the same time, the soft macro environment and in particular the US housing market will eventually turn positive, and our North America business is well-positioned for future growth and further margin expansion.

同時，疲軟的宏觀環境，特別是美國房地產市場最終將轉好，我們的北美業務為未來的成長和進一步的利潤率擴張做好了準備。

We've seen the downturn of consumer discretionary demand intensify since 2022 and existing home sales hit multi-decade lows in 2023 and 2024. There is no doubt that we have been and still are at a low point in the US housing market. With interest rate reductions, this will ease at some point, and we are well-positioned to benefit from improving demand.

自2022年以來，我們看到非必需消費品需求的下滑加劇，成屋銷售在2023年和2024年觸及數十年來的低點。隨著利率降低，這種情況將在某個時候緩解，我們處於有利位置，可以從需求改善中受益。

Replacement demand remains strong, and we expect this to continue due to its strong installed base and increased usage of appliances, which remains higher than pre-pandemic norms. Overall, we have the right strategy and operational priorities to navigate the challenging environment in our North America business.

更換需求仍然強勁，我們預計這種情況將持續下去，因為其安裝基礎強勁，電器使用量增加，仍高於疫情前的標準。總體而言，我們擁有正確的策略和營運優先事項來應對北美業務充滿挑戰的環境。

Our SDA and international businesses continue to perform ahead of previous expectations, delivering sizeable market share gains. These businesses have a long runway for growth and continue to be very important to our overall portfolio.

我們的 SDA 和國際業務的表現繼續超越先前的預期，實現了可觀的市場份額成長。這些業務有很長的成長空間，對我們的整體投資組合仍然非常重要。

Finally, we are delivering strong cash generation in the quarter and are expecting significant improvement from the back half of 2024. We have good line of sight to our approximately $500 million free cash flow target for the year. We continue to return cash to shareholders through our attractive dividend and have a long track record of shareholder-friendly capital allocation. We are confident in our strategy and the steps we are taking, both the short and long term, to deliver value for our shareholders.

最後，我們在本季度實現了強勁的現金生成，並預計從 2024 年下半年開始將出現顯著改善。我們繼續透過有吸引力的股息向股東返還現金，並在有利於股東的資本配置方面擁有悠久的記錄。我們對我們的策略以及我們正在採取的短期和長期步驟充滿信心，為股東創造價值。

And that concludes our formal remarks, and we will now open it up for questions.

我們的正式發言到此結束，現在我們將開始提問。

(Operator Instructions) Sam Darkatsh, Raymond James.

（操作員說明）Sam Darkatsh，Raymond James。

Good morning, Marc. Good morning, Jim. How are you?

早上好，馬克。早安，吉姆。你好嗎？

Good morning, Sam.

早上好，山姆。

Morning, Sam. I am good.

早上好，山姆。我很好。

Two questions, both as it relates to North America MDA. First one, you originally were looking at a 10% or 11% margin exit rate in the fourth quarter. How long do you figure it will take to return the segment to that 10% or 11%? And what specifically would have to happen for those levels to be achieved? And then I've got a follow-up.

有兩個問題，都與北美 MDA 有關。第一個，您最初希望第四季度的利潤率退出率為 10% 或 11%。您認為該細分市場需要多長時間才能恢復到 10% 或 11%？要達到這些水平，具體需要做些什麼？然後我有一個後續行動。

So Sam, let me just take that question. The revised guidance which we issued basically points to a roughly 9% exit margin, which is different from our previous 10% to 11%, which we had in mind. That is all entirely driven by the delay of the housing recovery. As you know, we entered the year assuming, like many other people, that there would probably be two or three interest rate reductions, and let's see how many will actually happen. In reality, you talked about the delay of a recovery, which is reflected in our guidance.

山姆，讓我回答這個問題。我們發布的修訂後指引基本上指向大約 9% 的退出利潤率，這與我們之前設想的 10% 到 11% 不同。這完全是由房地產復甦的延遲造成的。如您所知，當我們進入這一年時，與許多其他人一樣，假設可能會出現兩到三次降息，讓我們看看實際會發生多少次。事實上，您談到了恢復的延遲，這反映在我們的指導中。

The simple answer to your question is, when will it happen or what needs to happen, the housing recovery needs to happen. As you know, we're disproportionately benefiting from any housing recovery because of our strength in the builder channel, and that is a really important element in getting to this run rate.

你的問題的簡單答案是，什麼時候會發生或需要發生什麼，住房復甦需要發生。如您所知，由於我們在建築商管道方面的實力，我們從任何住房復甦中受益匪淺，這是達到這一運行率的一個非常重要的因素。

Now, in the meantime, we do what we can do in our own control that was the promotion price increase, we've taken aggressive steps in cost actions, but the housing market at the same time needs to recover in order to get to these double-digit run rates again.

現在，與此同時，我們在自己的控制下做我們能做的事情，那就是促銷價格上漲，我們在成本行動方面採取了積極的措施，但房地產市場同時需要復甦才能實現這些目標運行率再次達到兩位數。

Got you. My second question is actually related to your answer there. It was notable, at least to me, that mix alone created such a large cut to North American margins, at least versus the expectations previously. Just trying to, at a high level, I'm trying to get a sense of what informed your assumption of such a margin benefit in the back half originally from mix, I guess, it would be, I guess, 200 basis points or so, especially knowing that you're in the process of raising price, which could inhibit mix, and your early interest rate cuts typically actually give homeowners a pause until they wait for interest rates to stabilize. I'm just trying to get a sense of why mix was originally expected to be such a positive benefit in the back half?

明白你了。我的第二個問題實際上與您的回答有關。值得注意的是，至少對我來說，僅是這種混合就導致了北美利潤率的大幅下降，至少與先前的預期相比是如此。只是想，在高水平上，我想了解一下您對後半部分最初來自混合的利潤率收益的假設，我想，我想，這將是 200 個基點左右，特別是知道您正在提高價格，這可能會抑制混合，並且您的早期降息通常實際上會讓房主暫停，直到他們等待利率穩定。我只是想了解為什麼混合最初預計會在後半段帶來如此積極的好處？

Yeah. Sam, there's obviously multiple elements going on the pricing side regarding the difference year over year versus a sequential perspective. First of all, on the pure pricing, and I will just come back to mix, as you know, we have not seen a lot of like-for-like price change, but obviously, the carryover of the deep promotional discount in the second half of 2023 that was very visible and maybe more visible than we originally assumed in the first half, and that by definition impacted full-year numbers. So as you also know, we issued our promotion price program changes late April. We see the benefits of that fully coming into our business in June, and that will on a go-forward basis drive quite a bit of pricing. But the promotional impact in the first half, frankly, that was one element, which was probably even bigger than we originally assumed.

是的。薩姆，顯然，定價方面存在多個因素，涉及同比與連續視角的差異。首先，關於純粹的定價，我會回來混合，如你所知，我們沒有看到很多類似的價格變化，但顯然，第二次深度促銷折扣的結轉2023 年上半年的情況非常明顯，而且可能比我們最初假設的上半年更明顯，而且從定義上來說，這影響了全年數據。如您所知，我們在四月底發布了促銷價格計劃變更。我們看到了它在 6 月全面進入我們業務的好處，並且這將在未來的基礎上推動相當大的定價。但坦白說，上半年的促銷影響是一個因素，可能比我們最初假設的還要大。

The second part to your question about mix, what you have right now going on, and I think you even pointed towards this one in your report, is there's almost two offsetting dynamics going on in the marketplace. You have on the one hand the replacement market, which is very strong, driven by higher appliance usage, and you're also now comping against good baseline numbers. So that is strength, but it comes with a very weak mix.

關於混合的問題的第二部分，你現在正在發生的事情，我認為你甚至在報告中指出了這一點，市場上正在發生幾乎兩種抵消的動態。一方面，替換市場非常強勁，這是由更高的設備使用率推動的，您現在也正在與良好的基準數字進行比較。這就是力量，但它的組合非常弱。

Just think about the consumer. The consumer who wants to replace their refrigerator or washing machine in one or two days, typically you don't have a lot of opportunities to get them to higher price points to explain the new technology or bigger products because it typically has to fit a cut-out.

想想消費者吧。對於想要在一兩天內更換冰箱或洗衣機的消費者，通常您沒有太多機會讓他們以更高的價格點來解釋新技術或更大的產品，因為它們通常必須適應削減-出去。

The other side of it, the discretionary demand, that is the really weak side, even weaker than you would see right now in the overall industry numbers, quite a bit weaker. The discretionary side comes with a fundamental remodel or existing home sales or new housing, and of course, the moment you have a planned kitchen, which is designed, you have much, much bigger mix opportunities. And that's the element which has really changed versus the beginning of the year assumption.

另一方面，可自由支配的需求是真正疲軟的一面，甚至比你現在在整個產業數據中看到的還要弱，弱得多。可自由支配的方面是進行根本性的改造或現有房屋銷售或新住房，當然，當您設計好廚房後，您就有了更大的混合機會。與年初的假設相比，這才是真正改變的因素。

Mike Dahl, RBC Capital Markets.

麥克·達爾，加拿大皇家銀行資本市場部。

Hi, thanks for taking my questions. Just a follow-up on North America. Marc, can you talk to the competitive responses you're seeing so far, because I completely understand your point on the restatement to AHAM, but you do have a competitor that posted some better trends. And it looks like that competitor, and maybe one of your retailers, has talked about promotional activity maybe staying stable at the heightened levels. If you could just give us a little more color on what you're seeing, are people following your actions, and how does that inform your second-half implied guide?

您好，感謝您回答我的問題。只是北美的後續行動。 Marc，您能談談您迄今為止看到的競爭對手的回應嗎？看起來那個競爭對手，也許還有你的零售商之一，已經談到促銷活動可能會在較高的水平上保持穩定。如果您能給我們更多關於您所看到的內容的信息，人們是否在關注您的行為，這對您的下半場隱含指南有何影響？

Mike, let me just maybe respond to the broader industry and the results from our promotional price program changes. So for the broader industry, as we pointed out and I think some of you also reported in your own analyst reports, there has been more noise than usual in the reported industry data. As you know, we were not exactly representing the industry data in Q1 and also in Q2; we have a slightly different picture. So the year-to-date number we're pretty confident is roughly minus 2% on a volume basis, which by way, what I've seen on the competitor's investor relations communication is very similar. So everybody pretty much points to a down market in units, and probably because of the promotional price environment quite a bit more on the revenue side or on the ASP side.

麥克，讓我對更廣泛的行業以及我們的促銷價格計劃變化的結果做出回應。因此，對於更廣泛的行業，正如我們指出的那樣，我認為你們中的一些人也在自己的分析師報告中報告了，所報告的行業數據中存在比平時更多的噪音。如您所知，我們並沒有準確代表第一季和第二季的行業數據；我們的情況略有不同。因此，我們非常有信心今年迄今為止的數字在數量基礎上大約為-2%，順便說一句，這與我在競爭對手的投資者關係溝​​通中看到的非常相似。因此，每個人幾乎都指出市場的銷售下降，可能是因為促銷價格環境在收入方面或平均售價方面要高得多。

We came out with our promotional price program changes late April, as I've said before. We see the full impact, the positive impact response starting in our June results, and of course, whenever you come out with these promotional program changes because you are kind of less promotional, if you want to say so, of course you expect some volatility in your market share. But frankly, we see that stabilizing towards the end of the quarter, and knowing our product launches, which we have in Q3 and Q4, we feel very good about our full-year market share will be pretty much stable, and also year to date, there's not so much noise. Honestly, I can't tell you what the competitors do or might do; you've got to ask them. We do what's right for our company, and that is continuing on the course of margin expansion, and pricing is a key element in this one.

正如我之前所說，我們在四月下旬公佈了促銷價格計劃的變更。我們從六月的業績中看到了全面的影響和積極的影響反應，當然，每當你推出這些促銷計劃的變化時，因為你的促銷活動較少，如果你想說的話，當然你預計會出現一些波動在您的市場份額中。但坦白說，我們看到在本季度末趨於穩定，並且知道我們在第三季度和第四季度推出的產品，我們對全年市場份額將非常穩定感到非常滿意，而且今年迄今為止也是如此，沒有那麼多噪音。老實說，我無法告訴你競爭對手做了什麼或可能會做什麼；你必須問他們。我們做對我們公司有利的事情，並且在利潤擴張的過程中繼續這樣做，而定價是其中的關鍵因素。

Okay. Thanks for that, Marc. Then my second question, maybe just taking that and back to the margin bridge, in terms of the getting from 6.3% to approximately 9%, I know the price actions only helped half your quarter in 2Q, so there's still half that to come through in 3Q. Can you just help us maybe just bucket out the walk, because it's still a pretty steep walk, so how much is the incremental benefit from the price actions, how much is the incremental benefit from the cost-outs, and then what is the remaining delta and kind of in the bridge to get up to the 9% by 4Q?

好的。謝謝你，馬克。然後我的第二個問題，也許只是回到利潤橋樑，就從 6.3% 到大約 9% 而言，我知道價格走勢只幫助了第二季度季度的一半，所以還有一半需要完成在第三季度。您能否幫助我們，也許只是完成步行，因為它仍然是一個相當陡峭的步行，那麼價格行為帶來的增量收益是多少，成本支出帶來的增量收益是多少，然後剩下的是什麼到第四季達到9%？

Yeah. So Mike, I think -- this is Jim. I think the first thing, and you've got the components there. But as you take it, the pricing, obviously -- because it's only partially in, it's only partially in the results here in Q2. So once you get the full run rate coming in, in Q3 and Q4, that's obviously a big part of it, and then the cost is the remaining part of this. And you would have heard me say that if you look at the cost benefits that we're seeing, approximately 60% of that really falls, so it's pretty much a pro rational part of it that falls to the North America bottom line. Also, those cost benefits are ramping up sequentially here as we commit -- as we completed a lot of our cost actions here within the second quarter, so you don't get the full run rate until you get to the third quarter. So I think you can think about those in many cases about equal in terms of the drivers that expand us from the 6% to the 9% exit rate.

是的。所以麥克，我想——這是吉姆。我認為首先，你已經擁有了組件。但正如你所見，定價很明顯——因為它只是部分地體現在第二季的結果中。因此，一旦你在第三季和第四季獲得全部運行率，這顯然是其中的很大一部分，然後成本就是其中的剩餘部分。你可能會聽我說過，如果你看看我們所看到的成本效益，大約 60% 的成本效益確實下降了，所以這幾乎是其中一個合理的部分，下降到了北美的底線。此外，正如我們承諾的那樣，這些成本效益正在依次增加——因為我們在第二季度內完成了許多成本行動，所以直到第三季度你才能獲得完整的運行率。因此，我認為您可以考慮在許多情況下將我們的退出率從 6% 擴大到 9% 的驅動因素。

Hi, Mike, it's Marc. There's also one additional element, just echoing Jim's point, is keep in mind our very profitable small domestic appliance business has a seasonality, which is heavily skewed towards the back half. That historically would have been sitting in the North America and to some extent European margin. That is now showing up in the segment results, so obviously, the profit which comes with that heavily skewed business in Q3 and Q4, that also is another element, which explains the margin walk.

嗨，麥克，我是馬克。還有一個額外的因素，正好呼應吉姆的觀點，請記住，我們利潤豐厚的小型家用電器業務具有季節性，嚴重偏向下半年。從歷史上看，這個數字一直位於北美，在某種程度上位於歐洲邊緣。現在，這一點已經體現在部門業績中，很明顯，第三季和第四季業務嚴重傾斜帶來的利潤，這也是解釋利潤率走高的另一個因素。

Susan Maklari, Goldman Sachs.

蘇珊·馬克拉里，高盛。

Thank you. Good morning, everyone.

謝謝。大家，早安。

Good morning.

早安.

Good morning, Susan.

早安，蘇珊。

Good morning. My first question is, going back to the realization of the promotional price increase, can you talk a bit about where North America perhaps fell in the quarter relative to that down through that you reported for price mix? I know you normally don't give us that level of color, but I think given the shift in there, any additional details would be helpful.

早安.我的第一個問題是，回到促銷價格上漲的實現，您能否談談北美在本季度相對於您報告的價格組合下降的情況可能下降的情況？我知道你通常不會給我們那種級別的顏色，但我認為考慮到那裡的轉變，任何額外的細節都會有所幫助。

And then it seems like -- or can you comment on, are we still tracking to that 1% to 2% realization that you had initially targeted? Does that still seem like a reasonable goal, or has that changed at all, given the implementation and the way that this has started to come through?

然後看起來——或者你能評論一下，我們是否仍在追蹤你最初目標的 1% 到 2% 的實現？考慮到實施情況和開始實現的方式，這看起來仍然是一個合理的目標，還是已經發生了根本變化？

Yeah. Susan, without getting to exact details of North America, it was a global number, but both in the year to date, call it year-to-date May negative pricing, North America, US was the lion's share; and also, now with improvement, North America is the lion's share. It's heavily driven by the North American market. We had significant negative carryover, if you want to say so, on promotional price environment from the back half last year, and we see that fully now turning, and we saw that turning in kind of late May and fully in June, so we feel very good about certainly the sequential pricing trends in North America and by definition that now will start in Q3 and Q4 by turning to also year-over-year positive benefit.

是的。蘇珊（Susan），沒有透露北美的具體細節，這是一個全球數字，但在今年迄今為止，稱其為今年迄今的 5 月負定價，北美、美國佔據了最大份額；而且，現在隨著情況的改善，北美佔據了最大份額。它在很大程度上受到北美市場的推動。如果你想說的話，去年下半年的促銷價格環境我們有顯著的負面結轉，我們看到現在完全轉變，我們看到這種轉變在五月下旬和六月完全轉變，所以我們覺得當然，北美的連續定價趨勢非常好，根據定義，現在將從第三季和第四季開始，轉向同比積極效益。

In terms of a net impact, we're fully on track towards that net impact, which we referred to earlier. So we feel very good about what the team has done, and we will remain disciplined on this one. That's what we communicated, and that's what we're seeing.

就淨影響而言，我們完全步入了實現我們之前提到的淨影響的軌道。因此，我們對團隊所做的事情感到非常滿意，我們將在這方面保持紀律。這就是我們所傳達的，這就是我們所看到的。

Okay, that's helpful. And then when you think about the global footprint that you have today, I know you mentioned that you closed the sale of the Brazilian assets in early July, can you talk a bit about the cash generation of the business given where these markets are all operating, and how you think about the contributing? And perhaps with that, the path to de-leveraging over time?

好的，這很有幫助。然後，當您想到您今天的全球足跡時，我知道您提到您在 7 月初完成了巴西資產的出售，您能否談談考慮到這些市場都在運營的業務的現金生成情況，您如何看待貢獻？也許隨著時間的推移，去槓桿化之路會怎麼樣？

Yeah. Susan, and this is Jim. I would say, if you really step back and you look at our international businesses right now, what I would say is you've seen strong margin performance in the first half of the year on both our Asia business, as well as our Latin America business. And so, on a full-year basis, both of those will be positive cash generators for us, unlike what we've talked about in the past with our EMEA business, that was a cash consumer, but that was more because of continuous investment and restructuring.

是的。蘇珊，這是吉姆。我想說，如果你真的退後一步，看看我們現在的國際業務，我想說的是，今年上半年我們的亞洲業務以及拉丁美洲業務都實現了強勁的利潤率表現商業。因此，從全年來看，這兩者都將為我們帶來積極的現金產生器，與我們過去在歐洲、中東和非洲業務中談論的現金消耗者不同，但這更多是因為持續投資和重組。

On the other hand, today, our Asia and our Latin America businesses actually are positive cash generators. They generate enough cash to support their own investments. They don't require significant restructuring. And if you think about right now just the growth we're seeing in those markets, that growth is leading to both the higher margins that we've talked about but absolute higher cash generation, so they are positive cash-generating businesses for us. And really, if you just think about it, the easiest way to take one of those is just take what they generate from an EBIT perspective and then tax affect it, and that's about what they generate from a free cash flow perspective on a full-year type of basis. They obviously have some seasonality to them with their working capital. But outside of that, there's no other significant investments we need to make in them.

另一方面，今天，我們的亞洲和拉丁美洲業務實際上是積極的現金創造者。他們產生足夠的現金來支持自己的投資。它們不需要重大重組。如果你考慮我們現在在這些市場看到的成長，這種成長會帶來我們所討論的更高的利潤率，但也會帶來絕對更高的現金生成，因此它們對我們來說是積極的現金生成業務。事實上，如果你想一想，最簡單的方法就是從息稅前利潤的角度來看它們產生的收入，然後稅收對其產生影響，這就是從自由現金流的角度來看它們產生的全部收入——年份類型的基礎。他們的營運資金顯然有一定的季節性。但除此之外，我們不需要對它們進行其他重大投資。

Right. Maybe just adding, Susan, to this one, to your question about the de-leveraging. As you've seen before, we did not change fundamentally in terms of capital allocation '24. And even though we're kind of far away from giving '25 guidance, that's pretty much the theme which we would also see for '25. What I mean with that is, in '24, I think we have a very good balance between returning cash to shareholders, a larger pool, a very attractive dividend, and we pay down $0.5 billion dollars of long-term debt. Again, absent having a Board discussion, but I would right now assume that in '25, we will have a similar picture, i.e., a moderate reduction of long-term debt, and we want to be very attractive and continue to be very attractive in returning cash to shareholders.

正確的。蘇珊，也許只是補充你關於去槓桿化的問題。正如您之前所看到的，我們在資本配置方面沒有發生根本性的變化'24。儘管我們離提供 25 年指導還很遙遠，但這幾乎是我們在 25 年看到的主題。我的意思是，在 24 年，我認為我們在向股東返還現金、更大的資金池、非常有吸引力的股息和償還 5 億美元的長期債務之間取得了很好的平衡。再次強調，沒有進行董事會討論，但我現在假設在 25 年，我們將有類似的情況，即長期債務的適度減少，我們希望變得非常有吸引力，並繼續保持非常有吸引力向股東返還現金。

David MacGregor, Longbow Research.

大衛‧麥格雷戈，長弓研究中心。

Good morning, everyone. Thanks for taking the questions.

大家，早安。感謝您提出問題。

Morning, David.

早安，大衛。

Morning.

早晨。

I had a couple of high-level, sort of strategic questions here. We're talking about 9% margins for the end of the year for North America, but you're also talking about 9% margins on a consolidated basis for 2026. I guess just given your '24 guide of 6%, could you just bridge for us, again, it seems like a long put, but could you just bridge for us how you're thinking about getting to that 9% using price mix, net cost, raw materials?

我在這裡有幾個高層次的、策略性的問題。我們談論的是北美今年年底的 9% 利潤率，但你們也在談論 2026 年綜合利潤率 9%。長期看跌期權，但您能否為我們介紹您如何考慮使用價格組合、淨成本、原材料來達到9%？

Yeah. So David, obviously it's too early to yet give you '25 guidance because that's what you're implying in your question. But I think there's a couple fundamental drivers. First of all, you see if I split it by our BUs, I think the Latin America and our Asia business are actually very well on track. I mean, I guess, what would we expect over half a point to a point of margin expansion over time horizon? Yes, but directionally, we are on a good pace.

是的。所以大衛，顯然現在給你 '25 指導還為時過早，因為這就是你在問題中暗示的內容。但我認為有幾個基本驅動因素。首先，你看如果我按我們的業務部門來劃分的話，我認為拉丁美洲和我們的亞洲業務實際上進展順利。我的意思是，我猜，隨著時間的推移，我們預計利潤率將擴大半個百分點到一個百分點是多少？是的，但從方向來看，我們進展順利。

Our small domestic appliance business is actually all about growth. I mean, we're operating in 15.5% or 15.5% to 16%, which is a very healthy level, so it is all about the growth. And frankly, even versus what we shared with you when we met at Investor Day, that revenue growth is very strong, and with the product introductions, we expect that to continue to be very strong. So the growth which we see out of the SDA business and the impact it has on our overall margin is an important element as we get to '25 and '26.

我們的小家電業務其實就是為了成長。我的意思是，我們的營運成長率為 15.5% 或 15.5% 至 16%，這是一個非常健康的水平，所以一切都與成長有關。坦白說，即使與我們在投資者日會面時與您分享的情況相比，收入成長也非常強勁，隨著產品的推出，我們預計收入成長將繼續非常強勁。因此，我們從 SDA 業務中看到的成長及其對我們整體利潤率的影響是我們進入 25 和 26 年時的一個重要因素。

But the core of all of that, as you know, it will be about North America. The margin turnaround in North America, which we're doing the right things on pricing, we're doing the right things on cost, and yes, at one point, we need to also have some support from the housing market, and that will be a key element in how we bridge. But North America is right now, we are -- also probably towards next year, we're not looking so much at revenue growth, we're really pushing for margin expansion, and that is our course.

但正如你所知，這一切的核心將是關於北美。北美的利潤率轉變，我們在定價上做了正確的事情，我們在成本上做了正確的事情，是的，在某一時刻，我們還需要得到房地產市場的一些支持，這將成為我們如何溝通的關鍵要素。但北美現在就是這樣，我們也可能在明年，我們不太關注營收成長，我們真正在推動利潤率擴張，這就是我們的方針。

David, I mean -- this is Jim. Just to kind of add to what Marc said, if you go back to Investor Day, we really highlighted the biggest move from 7% to 9% was cost. Now, the difference between the 6% and the 7% right now is what Marc kind of highlighted earlier, is that the mix in North America and the discretionary part of the business has been much lower. We did assume that would be slightly -- would be better within 2024.

大衛，我是說──這是吉姆。只是為了補充 Marc 所說的內容，如果你回到投資者日，我們確實強調從 7% 到 9% 的最大變化是成本。現在，6% 和 7% 之間的區別是 Marc 之前強調的，北美的混合比例和業務的可自由支配部分要低得多。我們確實認為 2024 年情況會稍微好一點。

I do think you can expect between now and 2026 an improvement that is just to the level that we only assumed in 2024, and so that helps you get from where the starting point was and it moved. But then the biggest part of this still will be costs that we intend to continue to take out within our business through simplification over a multiyear period.

我確實認為，從現在到 2026 年，您可以期待改進程度達到我們在 2024 年假設的水平，這可以幫助您從起點開始前進。但其中最大的部分仍然是我們打算在多年的時間內透過簡化來繼續在我們的業務中消除的成本。

That's helpful, thank you. I guess, secondly, there's been talk in the market of a Whirlpool sale. I'm not asking you, just to be clear, to comment on market rumors -- I'm not asking for that, but also just being mindful that at the right price, everything is for sale, is there a plausible scenario whereby Whirlpool exits most or all of its core six white goods business in North America, Latin America, and Asia, and goes forward with small domestic appliances and commercial appliances, similar to what you envisioned in your transformation strategy? Or are the economics of the small domestic appliance business and the commercial appliance businesses just so dependent on the white goods business that it would render them inseparable?

這很有幫助，謝謝。其次，我想市場上一直有關於惠而浦出售的傳言。我不是要求你，只是為了澄清，對市場謠言發表評論——我不是要求這樣做，但也只是要注意，在合適的價格下，一切都可以出售，是否存在一種合理的情況，即惠而浦退出北美、拉丁美洲、亞洲六大核心白色家電業務的大部分或全部，轉而發展小家電和商用電器，與您的轉型策略設想類似嗎？或者說，小家電業務和商用電器業務的經濟狀況是否過度依賴白色家電業務，以至於密不可分？

So David, that is obviously a question which goes probably well beyond an earnings call. But first of all, as you rightfully point out, we're not going to comment on any speculation or rumor; we've never done that, and we will not do that going forward.

大衛，這顯然是一個遠遠超出財報電話會議範圍的問題。但首先，正如您正確指出的那樣，我們不會對任何猜測或謠言發表評論；我們不會對任何猜測或謠言發表評論。我們從未這樣做過，今後也不會這樣做。

I think the critical element is, if you really step back and look at the portfolio transformation, which we've done over the last couple of years, be it China, the divestiture from Europe, or even in (inaudible), what we have right now is all our businesses, be it [integrated], be it North America, be it Latin America, be it SDA, in their respective segments we were number one. India may be the exception, but India is just such an attractive growth market.

我認為關鍵因素是，如果你真的退後一步，看看我們在過去幾年中所做的投資組合轉型，無論是在中國、從歐洲剝離，還是在（聽不清楚）我們所擁有的現在是我們所有的業務，無論是[整合]，無論是北美，無論是拉丁美洲，還是SDA，在各自的領域我們都是第一。印度可能是個例外，但印度正是一個如此有吸引力的成長市場。

We have -- in our portfolio, we have now a set of businesses, which I don't think you'll find many companies who can claim being number one pretty much everywhere we operate, and that is a very, very good and sustainable base going forward.

在我們的投資組合中，我們現在擁有一系列業務，我認為你不會找到很多公司可以在我們經營的任何地方聲稱自己是第一，這是一個非常非常好的和可持續的業務前進的基礎。

Right now, we do see, particularly as you saying about, for example, Latin America versus North America, there is quite a bit of connection and there is quite a bit of synergies. There is quite a bit of connection on the brands between KitchenAid SDA and our KitchenAid majors business, so there is a strong connector among all these elements, and that's why we right now think we have. Post-portfolio transformation, we have a very strong core business with a lot of growth opportunities going forward.

現在，我們確實看到，特別是正如您所說的，例如，拉丁美洲與北美之間存在相當多的聯繫，並且存在相當多的協同效應。 KitchenAid SDA 和我們的 KitchenAid 主要業務之間的品牌有相當多的聯繫，因此所有這些元素之間都有很強的聯繫，這就是我們現在認為我們擁有的原因。投資組合轉型後，我們擁有非常強大的核心業務，未來將有許多成長機會。

Laura Champine, Loop Capital.

勞拉·尚平 (Laura Champine)，Loop Capital。

Hi, guys. Is there any meaningful shift in your mix in the North American business by major appliance category or brand?

嗨，大家好。按主要家電類別或品牌劃分，您的北美業務組合是否有任何有意義的轉變？

You know, Laura, what I would say is probably if you look at the shift that we've had in terms of mix, as we talked about with the discretionary sales being lower and going to more of a replacement market, what I'd say is the shift has gone away from selling things such as suites, and we're not seeing as much in terms of at the super premium and maybe at the top of the premium area because, again, we've got a lot more consumers that are coming in as duress purchasers they're looking for a replacement.

你知道，勞拉，我想說的是，如果你看看我們在組合方面所發生的轉變，正如我們所討論的，可自由支配的銷售量較低，並且轉向更多的替代市場，我會可以說，這種轉變不再是銷售套房之類的東西，而且我們在超高端領域並沒有看到那麼多，也許在高端領域的頂部，因為我們有更多的消費者那些作為脅迫購買者進來的人正在尋找替代品。

That also naturally drives a little bit more mix to certain products that a consumer can't live without in terms of in a short period of time. So obviously, it will help you from a refrigeration perspective and also from a washer perspective, a laundry perspective, where you see that a consumer can wait a little bit longer to replace something such as a dishwasher or a cooking product. So again, we are seeing some shifts, but it's being driven really by much more of a replacement market right now, which does move the mix down some, and that's just less discretionary.

這自然也推動了消費者在短時間內離不開的某些產品的更多組合。顯然，從冷凍的角度以及從洗衣機、洗衣的角度來看，它都會對您有所幫助，您會發現消費者可以等待更長的時間來更換洗碗機或烹飪產品等物品。因此，我們再次看到了一些變化，但目前它實際上更多地是由替換市場推動的，這確實使組合下降了一些，而且這只是不太隨意。

Got it, and then on raw materials, I know you're trying to get raw materials cost back to pre-COVID, but I'm also curious about your comments that you had no change in raw materials in the quarter. So when should we start to see improvement there? And that's all from me, thanks.

明白了，然後在原材料方面，我知道您正在努力將原材料成本恢復到新冠疫情之前的水平，但我也很好奇您關於本季度原材料沒有變化的評論。那我們什麼時候該開始看到改善呢？這就是我的全部，謝謝。

Laura, it's Marc. We basically referred to -- we didn't see a lot of raw material change versus what we previously assumed. And our previous assumption was on a full-year base, it's neither going to be hugely negative or hugely positive.

蘿拉，我是馬克。我們基本上提到——與我們之前的假設相比，我們沒有看到很多原材料變化。我們先前的假設是基於全年的，它既不會是非常負面的，也不會是非常正面的。

So let me give you a little bit more color. As you know, our number one material source or raw material source is steel by a long shot. As a company depending on steel prices, we're buying up to $2 billion of steel, so it's massive. And yes, versus our assumption, there is not a lot of change.

所以讓我給你多一點色彩。如您所知，我們的第一個材料來源或原料來源絕對是鋼鐵。作為一家依賴鋼鐵價格的公司，我們購買了高達 20 億美元的鋼鐵，所以這是一個巨大的數字。是的，與我們的假設相比，沒有太多變化。

Now, to give you a little bit more color on this one, we don't buy steel on spot, or very rarely in some regions. In North America, these are larger contractual purchases, which are either on an annual, or we're trying to get to even longer contracts. They were largely fixed with some moving parameters, and we didn't see a huge change on this one.

現在，為了讓您對此有更多了解，我們不會當場購買鋼材，或在某些地區很少購買鋼材。在北美，這些都是較大的合約採購，要么是每年的，要么我們正在努力簽訂更長的合約。它們基本上固定了一些移動參數，我們沒有看到這方面有巨大的變化。

Now, right now, there's a lot of confusion out there between hot rolled and cold rolled. On the cold-rolled steel, there is now finally some movement in the right direction, which gives us a little bit more benefit even in our contractual setup, but it's not massively. Oil and plastics have been pretty stable, so where we saw some negative impact on some of other elements like zinc, which is not insignificant for some of our businesses. But overall, it's versus our original assumption, it's a wash.

現在，熱軋和冷軋之間存在著許多混淆。在冷軋鋼方面，現在終於在正確的方向上有了一些進展，即使在我們的合約設定中，這也為我們帶來了更多的好處，但並不是很大。石油和塑膠一直相當穩定，因此我們看到鋅等其他一些元素受到了一些負面影響，這對我們的一些業務來說並非微不足道。但總的來說，這與我們最初的假設相反，這是一場洗禮。

Now, that also means we don't have right now in raw materials a significant tailwind. As you think about '25, it is obviously too early to say, we may get a small tailwind, but I'm not counting on a big one.

現在，這也意味著我們目前在原材料方面沒有顯著的推動力。當你想到 25 年時，現在說我們可能會得到一個小順風，但我不指望有一個大順風，顯然還為時過早。

Michael Rehaut, JPMorgan.

麥可雷豪特，摩根大通。

Thanks, good morning, everyone. I just wanted to -- and apologize if this sounds similar to prior questions, but just wanted to make sure I'm fully appreciating the different drivers behind the North American margin guidance reduction for the year. Versus 90 days ago, obviously, you've talked about the fact that discretionary demand has not come back, it's been primarily mix. At the same time, obviously, it's kind of driven a fairly significant change in the back half outlook. So just want to make sure that we're understanding the drivers of that guidance change, if it's purely the assumptions of mix that informs the new guidance of 7% for the year versus 9% before, or if there's any other changes that we should be aware of as it relates to perhaps the pricing backdrop, operational leverage, you have the North American shipment outlook down slightly from before, or if there's any other factors to consider there?

謝謝大家早安。如果這聽起來與之前的問題相似，我只是想道歉，但只是想確保我完全理解今年北美利潤指引下調背後的不同驅動因素。顯然，與 90 天前相比，您談到了可自由支配需求尚未恢復的事實，主要是混合需求。同時，顯然，這在某種程度上推動了後半段前景的相當重大的變化。因此，我只是想確保我們了解指導變更的驅動因素，是否純粹是混合假設告知今年 7% 與之前的 9% 的新指導，或者是否還有我們應該進行的任何其他更改請注意，因為這可能與定價背景、營運槓桿有關，北美出貨量前景比以前略有下降，或者是否還有其他因素需要考慮？

Yeah. Mike, it's Marc. So let me -- of course, there's always a lot of components, but in very simple terms versus the original guidance, the single biggest change is we originally assumed, like most people, that we would start seeing a housing recovery in '24, and it's not happening. That was based on the assumption that we would see interest rates and, therefore, mortgage rate reductions, and it didn't happen.

是的。麥克，是馬克。所以讓我——當然，總是有很多組成部分，但用非常簡單的術語來說，與最初的指導相比，最大的變化是我們最初假設，像大多數人一樣，我們將在24 年開始看到住房復甦，但這並沒有發生。這是基於這樣的假設：我們會看到利率下降，因此抵押貸款利率也會下降，但這並沒有發生。

Most visible is actually existing home sales, which as we several times pointed out, is the single biggest driver of overall appliance demand. And existing home sales dropping to now, what was a 3.89 million units? Frankly, we did not have that in our original guidance assumption. We would have counted more on a number 4.5 million to 5 million in the back half; it's just not happening. Now, it will happen at one point, but it's not a '24 event, so that's the single biggest driver of the guidance change.

最明顯的實際上是現有房屋銷售，正如我們多次指出的那樣，這是整體家電需求的最大推動力。成屋銷售跌到現在，389萬套？坦白說，我們最初的指導假設中沒有這一點。我們預計後半段的人數將達到 450 萬到 500 萬人；它只是沒有發生。現在，它會在某個時刻發生，但這不是 24 年的事件，所以這是指南變化的最大驅動因素。

Now, as a result of that, yes, you have an overall slight decline of the industry, you have a more negative mix, all of the subsequent effects, but the number one cause is the delay of the housing recovery.

現在，結果是，是的，整個行業整體略有下滑，出現了更負面的組合，所有後續影響，但首要原因是房地產復甦的延遲。

To the second part of what is the fundamental driver between first-half and second-half margins in North America, 80% of that change is pricing because we had a huge negative carryover from the promotional pricing in the first half. We corrected that with our actions in late April, they become visible in June, and that explains the vast majority of the improvement in the second half versus the first half.

關於北美上半年和下半年利潤率之間的基本驅動因素的第二部分，80% 的變化是定價，因為我們從上半年的促銷定價中獲得了巨大的負結轉。我們透過 4 月下旬的行動糾正了這一點，這些問題在 6 月變得明顯，這解釋了下半年相對上半年的大部分改進。

Okay. All right. Thanks, Marc. I appreciate that. I guess the second question, perhaps on a more positive note, the SDA global industry outlook, you revised downwards from 2% to 4% to roughly flat, I think as you probably earlier mentioned, also impacted by perhaps reduced discretionary spend versus prior outlook. But you've been able to maintain your margin outlook for the year at 15.5%. And I'm just curious if the ability to hold the margins is due to the fact that you're still executing from a sales growth standpoint and your own sales growth outlooks are similar, despite a weaker industry, if there's other drivers that are allowing you to maintain that margin outlook that you've been able to maybe put into gear in a softer market backdrop. Would just love your take on the ability to hold margins and if in fact perhaps, the first part of the factors that you're just still able to execute and deliver sales growth in line with your prior expectations despite a softer market backdrop.

好的。好的。謝謝，馬克。我很感激。我想第二個問題，也許從更積極的角度來看，SDA 全球行業前景，您從2% 下調至4%，大致持平，我認為正如您之前可能提到的，也可能受到可自由支配支出相對於先前前景減少的影響。但您仍將今年的利潤率預期維持在 15.5%。我只是好奇，保持利潤率的能力是否是因為您仍然從銷售成長的角度執行任務，並且儘管行業疲軟，但您自己的銷售成長前景相似，是否有其他驅動因素允許您可以維持在市場疲軟的背景下可以實現的利潤前景。我只是喜歡您對保持利潤率的能力的看法，如果事實上可能的話，儘管市場背景疲軟，但您仍然能夠執行並實現符合您之前預期的銷售增長的因素的第一部分。

Yeah. So Michael, obviously we like our SDA business, wholeheartedly. It's probably in our portfolio of strong brands; the KitchenAid brand is probably the diamond. It is a super strong brand in both majors and small domestic.

是的。 Michael，顯然我們全心全意地喜歡我們的 SDA 業務。它可能在我們的強勢品牌組合中； KitchenAid 品牌可能是鑽石。無論是國內大小型或超強勢品牌。

On the small domestic, the small appliances, when we refer to industry, to be honest, that industry data has maybe less relevance for our SDA business than it has on majors, and that's very simply driven by the SDA market is such a diverse market that you have low end cheap toasters. And the other hand, you have $2000 for an automatic espresso machine. So it's a wide spectrum. That's why I would say we're a little bit more disconnected from a broader industry trend.

在小型家用電器方面，當我們提到行業時，老實說，行業數據與我們的SDA 業務的相關性可能不如與專業數據的相關性，而這很簡單，這是由SDA 市場驅動的，因為SDA市場是一個多元化的市場你有低端便宜的烤麵包機。另一方面，你有 2000 美元購買一台自動濃縮咖啡機。所以它的範圍很廣。這就是為什麼我會說我們與更廣泛的行業趨勢有點脫節。

I would see the industry trends more as broader consumer confidence in that segment. But I think what we demonstrate with the SDA business, not only--it's not only (inaudible) of which is just our evergreen strong products, but you bring meaningful innovation to the market; it sells. It's kind of -- the fully automatic espresso maker, which we launched, is selling between $1,400 and $1,900. So it's not cheap by any definition, but you bring good innovation, and it has a consumer rating of 4.8; it sells. Same thing on the rice and grain cooker, which I know is a super small segment, you bring meaningful innovation to market; it sells.

我認為行業趨勢更多是消費者對該細分市場的信心更廣泛。但我認為我們透過 SDA 業務展示的不僅是（聽不清楚）我們常青的強大產品，而且還為市場帶來了有意義的創新；它賣。我們推出的全自動濃縮咖啡機的售價在 1,400 美元到 1,900 美元之間。所以從任何意義上來說它都不便宜，但你帶來了很好的創新，它的消費者評分為 4.8；它賣。在電鍋和穀物炊具上也是如此，我知道這是一個非常小的細分市場，你為市場帶來了有意義的創新；它賣。

And that's why -- I think that demonstrates our ability to somewhat disconnect ourselves from the broader, call it sentiment in the SDA market. You have a strong brand, you bring good innovation, coupled with great quality, it sells. And the margin run rates, was probably in between the lines, we actually in Q2, we invested a lot more marketing for KitchenAid SDA. Despite that, we had margin expansion, and we see the same theme also continuing throughout the back half. That is a very strong business, honestly have zero concerns about the margin. This is all about how much we can grow the business.

這就是為什麼——我認為這表明我們有能力在某種程度上將自己與更廣泛的市場脫節，稱之為 SDA 市場的情緒。你有一個強大的品牌，你帶來了良好的創新，再加上優良的品質，它就會暢銷。利潤率可能在字裡行間，我們實際上在第二季度，為 KitchenAid SDA 投入了更多的行銷資金。儘管如此，我們的利潤率仍然擴大，我們看到同樣的主題在整個後半段也持續存在。這是一項非常強大的業務，老實說，對利潤率的擔憂為零。這關係到我們能夠將業務發展到什麼程度。

Eric Bosshard, Cleveland Research.

艾瑞克‧博斯哈德，克里夫蘭研究中心。

Thanks. Good morning.

謝謝。早安.

Good morning, Eric.

早安，埃里克。

Housekeeping question first. Just North American revenue, it looks like it's down roughly 7% in the first half, and you talked about the full-year market being flat and progress with price. Does the math then suggest we should be thinking about the second-half North American revenue growing 3% or 5%? Is that reasonable, or is there something that I'm missing?

首先是客房服務問題。就北美收入而言，上半年似乎下降了約 7%，您談到全年市場持平，價格有所上漲。那麼數學是否顯示我們應該考慮下半年北美收入成長 3% 或 5%？這是合理的，還是我遺漏了什麼？

Yes. So Eric, just some directional color. On our, call it mid-single-digit revenue down, there's a big element which is the pricing carryover, and then you have a small unit decline. I would say year to date down mid-single digits. Three-quarters of that is pretty much pricing carryover on promotions, and the rest is units. So the unit decline is obviously a little bit less than we showed in revenue. And the same thing now flips as we look at the second half, because we had the promotion price increase. And we will start getting positive comps against last year, and that stabilizes.

是的。所以艾瑞克，只是一些方向性的顏色。在我們看來，收入出現中個位數下降，其中一個重要因素是定價結轉，然後單位數量就會出現小幅下降。我想說的是，今年以來，該數字下降了中個位數。其中四分之三幾乎是促銷活動的定價結轉，其餘的則是單位。因此，單位數量的下降顯然比我們在收入中顯示的要少一些。當我們看到下半年時，同樣的事情現在發生了變化，因為我們的促銷價格上漲了。我們將開始獲得與去年相比的正面回報，而這種情況將會穩定下來。

On the unit side versus the trend which we had so far, I wouldn't expect too much change. But the difference on the revenue side between first and second half is coming from price realization per unit sold.

在單位方面與我們迄今為止的趨勢相比，我預計不會有太多變化。但上半年和下半年收入的差異來自於每單位銷售的價格實現。

And then secondly on market share in North America, there was a comment made about a bit of a greater focus on margin relative to market share and then also comments about full-year stable market share. I guess I'd just love you to talk a little bit about what your strategy and path is on holding, or even gaining share in the back from what looks to maybe be a little bit of dislocation in 2Q. And also just to make sure that I'm framing the strategic plan on market share and what you're trying to do in North America.

其次是北美的市場份額，有人評論說相對於市場份額更加關注利潤率，然後還有關於全年穩定市場份額的評論。我想我只是希望你能談談你的策略和路徑是什麼，甚至是從第二季看起來有點混亂的情況中獲得份額。而且只是為了確保我正在製定有關市場份額的戰略計劃以及您在北美要做的事情。

So Eric, as we said before, we are planning to hold our market share this year, and we have a high degree of confidence on this one. Now, zooming out a little bit, the fundamental reason why we did all these promotional price change actions was, in a replacement market, if you invest heavily in promotions, you typically don't get the lift because the replacement consumer doesn't wait for a July Fourth holiday to get a deal. So the fundamental economic return you get on promotion investments is just different right now than in any comparable year.

所以埃里克，正如我們之前所說，我們計劃今年保持我們的市場份額，我們對此充滿信心。現在，稍微縮小一點，我們採取所有這些促銷價格調整行動的根本原因是，在替換市場中，如果您在促銷上投入大量資金，那麼您通常不會得到提升，因為替換消費者不會等待七月四日假期，以達成交易。因此，您現在透過促銷投資獲得的基本經濟回報與任何可比較年份都不同。

So do we expect some volatility in market share in the short term? Yes, of course, but it's already kind of leveled out, and we feel pretty good about how we exited the market share in June. The real big driver of market share stable is maybe less promotions, but at the same time, we have a strong product pipeline. The products, which we launch now are some majors in North America, where we will have an all-new front load washer coming in Q3, et cetera, so there's -- so we have a strong product pipeline and it sells. So that's what gives us the confidence on our market share being stable.

那麼，我們預期短期內市佔率會出現一些波動嗎？是的，當然，但它已經趨於平穩，我們對六月退出市場份額的方式感到非常滿意。市佔率穩定的真正重要推動因素可能是促銷活動的減少，但同時，我們擁有強大的產品線。我們現在推出的產品是北美的一些主要產品，我們將在第三季推出全新的前置式洗衣機等，所以我們擁有強大的產品線並且可以銷售。這就是我們對市佔率穩定的信心。

And keep in mind, that does not yet have any positive market share impact which will come with the builder business. The moment the housing recovers, because of our disproportionate strong share on the housing side, of course, you will get automatically a lift on the market share, but that's not factored in for '24.

請記住，這還沒有對建築商業務帶來任何正面的市場佔有率影響。當房地產復甦時，由於我們在房地產方面所佔的份額不成比例，當然，您的市場份額會自動提升，但這並沒有考慮到 24 年。

Rafe Jadrosich, Bank of America.

拉夫·賈德羅西奇，美國銀行。

Hi, good morning. Thanks for taking my question.

早安.感謝您提出我的問題。

Morning.

早晨。

I just wanted to ask about some of the comments you've made on mix so far. Is there any way you could help us understand the margin difference between the replacement business and then the discretionary business. And then where is the discretionary mix today versus where it's been historically? How depressed is that business, just so we can get an idea of how much that's pressuring margins right now?

我只是想問一下您迄今為止對 mix 所做的一些評論。您有什麼方法可以幫助我們了解替代業務和全權委託業務之間的利潤差異嗎？那麼今天的可自由支配組合與歷史上的情況相比又在哪裡呢？該業務有多低迷，我們才能了解目前對利潤率的壓力有多大？

Yeah. So let me kind of start with your second part of the question, and then we can talk about at least how margin progression kind of goes within our portfolio. But to your point, typically replacement is about 50% to 55% of our business and new housing is about 10% to 15%, so it kind of leaves about a 30% to 35% section in there that's typically the discretionary.

是的。因此，讓我從問題的第二部分開始，然後我們至少可以討論我們的投資組合中的利潤成長是如何進行的。但就您而言，通常更換房屋約占我們業務的50% 至55%，而新住房約佔10% 至15%，因此，其中留下了約30% 至35% 的部分，通常是可自由支配的部分。

When you step back now and you look at it, we're at over 60% in terms of what replacement is today, and what that's really doing is that's driving the discretionary to be close to in the mid type of 20s, or low 20% of what our business is. That is a pretty significant reduction in terms of shift, even if volumes are relatively flat. We've just got such a strong replacement industry, so that is a significant shift within there.

當你現在退一步看時，你會發現我們今天的替代率超過 60%，而這真正的作用是推動可自由支配資金接近 20 多歲左右，或 20 多歲以下我們業務的%。即使產量相對持平，但就班次而言，這是相當顯著的減少。我們剛剛擁有如此強大的替代產業，因此這是內部的重大轉變。

Now, as you talk about margins, and we don't really give margin-specific type of information among all our different product categories because there's a lot of factors that go into that. What I will say is we've always talked about at least the margin progression that we see within our portfolio, and within our portfolio of brands, it starts from value being, obviously, having lower margins, up to our premium and super premium which have higher margins. In a down discretionary environment, you are impacted at the super premium and premium level significantly more and you do see more business in the value. So you've got a shift to a lower margin in terms of your brand portfolio.

現在，當您談論利潤時，我們並沒有真正提供所有不同產品類別中特定於利潤類型的信息，因為其中涉及許多因素。我要說的是，我們至少一直在談論我們在我們的投資組合中看到的利潤增長，在我們的品牌組合中，它從價值開始，顯然，利潤率較低，直到我們的溢價和超溢價，這有更高的利潤。在可自由支配的環境中，您在超保費和保費等級上受到的影響明顯更大，並且您確實看到了更多的價值業務。因此，您的品牌組合已轉向較低的利潤率。

Also, as you look at your product portfolio, I talked about the type of products that you see a consumer replacing relatively quickly. We've always talked about within our portfolio, refrigeration is the lowest in terms of margin, very competitive space through laundry, and then to more your cooking and dish. Obviously, I talked about earlier that a consumer will replace a refrigerator or a washer almost immediately after it breaks. So you see that replacement industry driving also towards what are probably lower margin product categories within there.

此外，當您查看您的產品組合時，我談到了您看到消費者相對較快更換的產品類型。我們一直在我們的產品組合中談論，冷卻在利潤方面是最低的，通過洗衣房的空間非常有競爭力，然後是更多的烹飪和菜餚。顯然，我之前談到消費者幾乎會在冰箱或洗衣機損壞後立即更換它們。因此，您會看到替代產業也正在朝向利潤率較低的產品類別發展。

And then the last piece, as I said, is that you don't get -- in terms of what you get from existing home sales and remodels is a lot of suite sales, which then tend to go more towards your premium brands and go towards your premium product mix of cooking and dish included within there.

然後，正如我所說，最後一點是，就現有房屋銷售和改建而言，您不會得到大量套房銷售，這些銷售往往會更多地流向您的高端品牌，並繼續發展。烹飪和菜餚的優質產品組合。

So while we don't give specific guidance, you can see just based on when you go to more of a replacement industry, whether it's from a brand or product category perspective, it pushes you into the lower margin areas. And as the discretionary comes back or new housing comes back, that's where we see the growth in the higher margin areas.

因此，雖然我們沒有給出具體的指導，但你可以看到，只要你進入更多的替代行業，無論是從品牌還是產品類別的角度來看，它都會將你推向利潤率較低的領域。隨著可自由支配權的回歸或新住房的回歸，我們看到利潤率較高的領域出現成長。

Okay, that's really helpful. Helpful color. And then, Jim, I wanted to follow up on some of the debt financing. So like you've been successful in refinancing. You just paid down $509 million, but you are reducing the cash flow outlook. How do you think about sort of balancing the IG credit rating you have today with capital returns to shareholders? And just remind us when the next debt payment you have do is just how you think about cash flow relative to your maturities and managing the dividend.

好的，這真的很有幫助。有用的顏色。然後，吉姆，我想跟進一些債務融資。就像您在再融資方面取得了成功一樣。您剛剛還清了 5.09 億美元，但您正在降低現金流前景。您如何看待目前的 IG 信用評級與股東資本回報之間的平衡？請提醒我們，您的下一次債務償還只是您如何看待相對於您的到期日和管理股息的現金流。

Yeah. So Rafe, here's what I would say. We did reduce the cash flow some for this year. Now, we still are confident as we go into next year that we have the $300 million incremental on top of where we are this year. That comes just by not having EMEA within the portfolio and the divestiture of EMEA. So when you step back and you look at that, we will have, as usual, some long-term debt coming due in the first quarter. And then we have the remainder of the term loan related to InSinkErator that will also come due next year.

是的。 Rafe，這就是我要說的。今年我們確實減少了一些現金流。現在，當我們進入明年時，我們仍然有信心在今年的基礎上增加 3 億美元。這只是因為產品組合中沒有 EMEA 以及 EMEA 的剝離。因此，當您退後一步看看這一點時，我們將像往常一樣，在第一季到期一些長期債務。然後我們還有與愛適易相關的剩餘定期貸款，也將於明年到期。

We're very confident in terms of our ability to pay down and refinance whatever we need to of that as we go into next year, and we don't get into specifics ahead of that. But just saying that that's what we've talked about as we look to next year. We are confident in terms of our ability to handle that, also looking at where that will put us.

我們對明年的償付能力和再融資能力非常有信心，我們不會在此之前透露具體細節。但這就是我們展望明年所討論的內容。我們對處理這一問題的能力充滿信心，同時也在考慮這將把我們放在何處。

As we expand margins, part of the whole thing of getting back to the leverage levels and leverage ratios we've talked about, yes, we will continue to focus on returning debt and prioritize that. We will prioritize the dividend and reducing debt, but de-prioritize share buyback. But as we go into next year, that will be the continued priority. But as our EBITDA grows, it will also help us from reducing debt and growing EBITDA to get closer to the metrics that we've talked about by 2025 and 2026. So we're very confident with our path to de-leveraging. And I would say that right now, the reduction in cash flow this year is probably only having a small impact on that.

隨著我們擴大利潤率，恢復我們所討論的槓桿水平和槓桿比率，是的，我們將繼續專注於償還債務並優先考慮這一點。我們將優先考慮股利和減少債務，但不優先考慮股票回購。但當我們進入明年時，這將繼續成為優先事項。但隨著我們的 EBITDA 成長，它也將幫助我們減少債務並增加 EBITDA，以更接近我們在 2025 年和 2026 年討論的指標。我想說，目前，今年現金流的減少可能對此影響很小。

All right, I think that marks pretty much the end of our Q&A session. I do appreciate you all joining. As you obviously heard today, we're still, from a broader macro environment, we're still -- and underline this, is still in a somewhat negative cycle in North America. You also saw and heard that the rest of the world has already shifted to a much more favorable cycle. But irrespective of this, still a little bit negative market cycle or macro cycle in North America, we're doing what we said we would be doing. We're successful in our pricing actions, we're successful in our cost takeout, we're committed to our margin expansion, and that market environment, which I referred to earlier will at one point turn, and that should set us up very well for 2025.

好吧，我認為這幾乎標誌著我們的問答環節的結束。我非常感謝你們大家的加入。正如您今天顯然聽到的那樣，從更廣泛的宏觀環境來看，我們仍然 - 並且強調這一點，北美仍然處於某種程度的負面週期中。您也看到和聽到，世界其他地區已經轉向一個更有利的週期。但不管怎樣，北美的市場週期或宏觀週期仍然有點負面，我們正在做我們說過要做的事情。我們的定價行動是成功的，我們的成本削減是成功的，我們致力於利潤率的擴張，而我之前提到的市場環境將在某個時刻發生轉變，這應該會讓我們非常有信心。一切順利。

With all of that in mind, have a wonderful day, and talk to you soon.

考慮到所有這些，祝您有美好的一天，很快就會與您交談。

Ladies and gentlemen, that concludes today's conference call. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。您現在可以斷開連線。