惠而浦 (WHR) 2024 Q3 法說會逐字稿

Good morning, Welcome to Whirlpool Corporation third quatar 2024 Earnings call. Today's call is being recorded. Joining me today are Marc Bitzer, our Chairman and Chief Executive Officer, and James W. Peters, our Chief Financial and Administrative Officer. Our remarks today track with a presentation available on the Investors section of our website at whirlpool corp.com.

早安，歡迎參加惠而浦公司 2024 年第三季財報電話會議。今天的通話正在錄音。今天與我一起出席的有我們的董事長兼首席執行官 Marc Bitzer 以及我們的首席財務和行政官 James W. Peters。我們今天的言論與我們網站 Whirlpool corp.com 投資者部分的簡報一致。

Before we begin, I want 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, a 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 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 our results from ongoing business operations. We also think the adjusted measures will provide you with a better baseline for analyzing trends and 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. At this time, all participants are in listen only mode.

我們也想提醒您，今天的簡報包括我們在收益簡報開頭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。我們也認為調整後的措施將為您提供更好的基準來分析趨勢和我們持續的業務運作。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。此時，所有參與者都處於僅聽模式。

Following our prepared remarks, the call will be open for analyst questions since our more than two questions. With that, I'll turn the call over to Mark.

在我們準備好的發言之後，由於我們提出了兩個以上的問題，因此電話會議將開放供分析師提問。這樣，我會將電話轉給馬克。

Thanks, Scott, and good morning, everyone. In the third quarter, we again delivered global sequential EBIT margin expansion, largely in line with our expectations. I'm pleased with our team's execution of our operational priorities, delivering 50 basis points of sequential global margin expansion. Our North American business even achieved 100 basis points of sequential margin expansion led by a previously announced pricing actions. Before I expand further into the results, I want to acknowledge what has been and will at least in the near term, remain a challenging macro environment in the US. Consumer confidence remains low and is impacted by the uncertainty ahead of the upcoming elections. Despite the recent interest rate cut by the Fed, the US housing market is still constrained by elevated mortgage rates. As a result of this environment, demand in the US has shifted significantly toward lower margin replacement driven purchases and the higher margin Discretionary demand continues to be weak due to historically low existing home sales. Although the timing of US housing recovery still uncertain, we are confident that the industry will have a multi-year recovery the underlying housing fundamentals remaining strong, we are well positioned to benefit from its eventual housing rebalance. While we await an anticipated multiyear US housing recovery, we are focused on executing our operational priorities. We delivered ongoing EPS of $3.43 cent, supported by our pricing actions, cost takeout and I may favorable adjusted effective tax rate. Our strong working capital management improved inventory, generating approximately $130 million of cash in the third quarter. We expect to deliver approximately 5.1 million free cash flow in 2024 for the remainder year to date, free cash flow was negatively impacted by nonrecurring cash outflow, those associated with the Europe transaction of $250 to $300 million. These cash outflows were one-time in nature and will no longer impact our results in 2025, structurally strengthening our free cash flow delivery going forward. Our capital allocation priorities are unchanged from our free cash flow delivery enables us to further reduce our debt levels and continued to return cash to shareholders. We paid dividends of $1.75 cents per share in the third quarter and declared $1.75 cents per share in Q4, returning approximately $400 million to shareholders this year.

謝謝斯科特，大家早安。第三季度，我們再次實現了全球息稅前利潤率環比擴張，基本上符合我們的預期。我對我們的團隊執行我們的營運優先事項感到滿意，實現了全球利潤率連續成長 50 個基點。在先前宣布的定價行動的帶動下，我們的北美業務甚至實現了 100 個基點的連續利潤率擴張。在進一步闡述結果之前，我想承認，至少在短期內，美國的宏觀環境仍然充滿挑戰。消費者信心仍然很低，並受到即將舉行的選舉之前的不確定性的影響。儘管聯準會近期降息，但美國房地產市場仍受到抵押貸款利率上升的限制。在這種環境下，美國的需求已顯著轉向利潤率較低的置換驅動型購買，而由於成屋銷售歷史低位，可自由支配的需求繼續疲軟。儘管美國房地產復甦的時機仍不確定，但我們有信心該行業將實現多年復甦，基礎住房基本面仍然強勁，我們處於有利地位，可以從最終的住房再平衡中受益。在我們等待預期的多年美國房地產復甦的同時，我們專注於執行我們的營運優先事項。在我們的定價行動、成本削減和我可能會有利的調整後有效稅率的支持下，我們持續實現了 3.43 美分的每股收益。我們強大的營運資金管理改善了庫存，第三季產生了約 1.3 億美元的現金。我們預計到 2024 年剩餘年份迄今將實現約 510 萬自由現金流，自由現金流受到非經常性現金流出的負面影響，這些非經常性現金流出與 2.5 至 3 億美元的歐洲交易相關。這些現金流出本質上是一次性的，將不再影響我們 2025 年的業績，從結構上加強我們未來的自由現金流交付。我們的資本配置優先順序保持不變，我們的自由現金流交付使我們能夠進一步降低債務水準並繼續向股東返還現金。我們在第三季支付了每股 1.75 美分的股息，並在第四季宣布每股 1.75 美分的股息，今年向股東返還了約 4 億美元。

Turning to slide 6, I will review the third quarter ongoing EBIT margin drivers. Sequentially, price mix delivered 75 basis points margin expansion, driven by the pricing actions in North America. Year-over-year price mix still impact margin unfavorably by 125 basis points. We saw the balance of sale shift out of coking and DISH, which tend to be our strongest MDA margin categories into replacement focused laundry and refrigeration categories. The heavier replacement market in U.S. unfavorably impacted product mix. In the fourth quarter, our cost takeout actions delivered 25 basis points of sequential margin expansion and 50 basis points year over year. This was led by our fully implemented organization simplification, while raw materials as expected were essentially unchanged . Currency negatively impacted margins sequentially and year over year as the Brazilian reais and Mexican pesos experienced some weakening relative to USD for European transaction impact of the third quarter negatively by 25 basis points due to the equity in affiliates impacts from Deco Europe easy. The negative impact was driven by the weak macro environment in Europe and the integration related efforts. Ultimately, we're pleased to have delivered 50 basis points sequential margin expansion. And now we'll turn it over to Jim to review our Segment results and for your guidance.

轉向投影片 6，我將回顧第三季持續的息稅前利潤率驅動因素。隨後，在北美定價行動的推動下，價格組合實現了 75 個基點的利潤率擴張。同比價格組合仍對利潤率產生 125 個基點的不利影響。我們看到銷售平衡從焦化和 DISH（這往往是我們最強的 MDA 利潤類別）轉向以更換為重點的洗衣和冷凍類別。美國較重的更換市場對產品結構產生了不利影響。第四季度，我們的成本削減行動使利潤率較上季成長 25 個基點，較去年同期成長 50 個基點。這是由於我們全面實施了組織簡化，而預期的原材料基本上沒有變化。貨幣對利潤率連續和同比產生負面影響，因為巴西雷亞爾和墨西哥比索相對於美元經歷了一些疲軟，對第三季度歐洲交易的影響產生了25 個基點的負面影響，原因是Deco Europe easy 對附屬公司股權的影響。負面影響是由歐洲疲弱的宏觀環境和一體化相關努力所造成的。最終，我們很高興實現了 50 個基點的連續利潤率擴張。現在我們將把它交給吉姆來審查我們的細分結果並尋求您的指導。

Thanks, Mark. Good morning, everyone. Turning to Slide 7, I'll review third quarter results for our MDA North America business. Net sales were down 4% year over year, driven by unfavorable price mix. As a result of the strong replacement environment and weak discretionary demand. We are seeing further deterioration in the underlying do discretionary demand than what we experienced in the first half of 2024. However, price mix improved significantly compared to last quarter due to our pricing actions. We delivered margin improvement with our pricing actions and our cost takeout program, which is expected to deliver approximately $300 million globally for the full year, our actions delivered 100 basis points of sequential EBIT margin expansion. Overall, the segment delivered 7.3% EBIT margin for the quarter, and we are very pleased with the margin expansion of approximately 170 basis points delivered since the first quarter. We continue to focus on margin expansion as we head into the fourth quarter and expect cost takeout opportunities to support for other margin progress.

謝謝，馬克。大家早安。轉向幻燈片 7，我將回顧我們的 MDA 北美業務第三季的業績。由於不利的價格組合，淨銷售額較去年同期下降 4%。由於強勁的替代環境和疲軟的可自由支配需求。與 2024 年上半年相比，我們看到潛在的可自由支配需求進一步惡化。我們透過定價行動和成本削減計劃實現了利潤率的提高，預計全年將在全球實現約 3 億美元的收入，我們的行動使 EBIT 利潤率環比擴大 100 個基點。總體而言，該部門本季的息稅前利潤率為 7.3%，我們對自第一季以來實現的約 170 個基點的利潤率擴張感到非常滿意。進入第四季度，我們將繼續關注利潤率擴張，並預計成本削減機會將支持其他利潤率的進步。

Turning to Slide 8. I'm excited to take a moment to showcase a few of our new product launches. Product innovation is critical to enable our future growth and margin expansion expectations. In MDA North America, we had two notable product launches in our laundry category. Our newest whirlpool brand laundry parasites common causes of front-load odor with the Fresh Flow Vent System. The innovative new fresh Flow Vent System is the first fan power system designed to help keep your clothes and washer fresh. With the successful launch of Maytag pet Pro top load laundry in 2023, we've brought the winning an innovative pet Pro filter to front-load. The pet Pro option utilizes the pet Pro filter lifting and removing pet hair from closed for a clean you can see recently KitchenAid launch brands first four door refrigerators, the KitchenAid refrigerator has a modern aesthetic was sections to keep fresh and frozen ingredients organized and easy to locate. The four-door designed combined with the storage flexibility lets consumers customize the refrigerator to their needs. These innovative new products demonstrate our commitment to being the best kitchen and laundry company, improving life at home for our consumers, strengthening our leading position in North America as we look forward to 2025 we have even stronger line up of new product introductions that we expect will positively impact price mix and share.

轉向幻燈片 8。產品創新對於實現我們未來的成長和利潤擴張預期至關重要。在 MDA 北美，我們在洗衣類別中推出了兩款引人注目的產品。我們最新的惠而浦品牌洗衣寄生蟲透過新鮮氣流通風系統消除了前置異味的常見原因。創新的新鮮氣流通風系統是第一個旨在幫助您的衣服和洗衣機保持新鮮的風扇動力系統。隨著 Maytag pet Pro 頂裝式洗衣房於 2023 年成功推出，我們將獲獎的創新 pet Pro 過濾器帶到了前裝式洗衣機中。 pet Pro 選項利用pet Pro 過濾器將寵物毛髮從封閉狀態提起並去除以進行清潔，您可以看到最近KitchenAid 推出的品牌首款四門冰箱，KitchenAid 冰箱具有現代美感，各部分可保持新鮮和冷凍食材井然有序且易於取放定位。四門設計與儲存靈活性相結合，讓消費者可以根據自己的需求定製冰箱。這些創新的新產品體現了我們致力於成為最好的廚房和洗衣公司、改善消費者的家庭生活、加強我們在北美的領先地位的承諾，展望 2025 年，我們將推出更強大的新產品陣容。將對價格組合和份額產生積極影響。

Turning to slide 9, I'll review the very strong results for our MDA. Latin America business segment continued to demonstrate strong net sales growth of 9% year over year, excluding currency, driven by industry in both Brazil and Mexico. We delivered a solid EBIT margin of 6.9% in the quarter with 110 basis points of sequential margin expansion from improved price mix. We expect sustained solid EBIT margins for the full year as we focus on continued growth and price mix improvement.

轉向幻燈片 9，我將回顧我們的 MDA 的非常出色的結果。拉丁美洲業務部門在巴西和墨西哥工業的推動下，淨銷售額持續強勁成長，年增 9%（不計貨幣）。本季我們實現了 6.9% 的穩定息稅前利潤率，由於價格組合的改善，利潤率環比擴大了 110 個基點。由於我們專注於持續成長和價格組合改善，我們預計全年息稅前利潤率將保持穩定。

Turning to slide 10, I'll review the Results of our MDA Asia business. We saw another quarter of double digit net sales growth of 10% year over year, excluding currency. Sequentially sales contracted due to the seasonal decline as we exited the summer period. Our continued share gains delivered volume growth, and we are pleased with the progress made in the segment. We delivered 2.9% EBIT margin from improved price mix and fixed cost leverage.

轉向幻燈片 10，我將回顧我們 MDA 亞洲業務的表現。我們看到另一個季度淨銷售額年增 10%（不包括貨幣因素）兩位數。隨著夏季的結束，銷售量因季節性下降而萎縮。我們持續的份額成長帶來了銷售的成長，我們對該領域的進展感到滿意。由於價格組合的改善和固定成本槓桿，我們實現了 2.9% 的息稅前利潤率。

Turning to slide 11, I'll review the results for our SDA global business. Net sales decreased 3% year over year, impacted by industry declines in the US. Strength in our direct to consumer business and new product launches were more than offset by a softer industry with weak consumer sentiment. We delivered EBIT margin of 14.2% with the quarter impacted by continued marketing investments in our new products. Our SDA business is well positioned for the holiday season, and we expect sustained strong EBIT margins. Despite industry softness seen year to date, we are confident in delivering the guided net sales growth of approximately 7.5%, supported by our new product pipeline.

轉向幻燈片 11，我將回顧我們 SDA 全球業務的結果。受美國產業下滑的影響，淨銷售額年減 3%。我們直接面向消費者的業務和新產品發布的實力被行業疲軟和消費者信心疲軟所抵消。受新產品持續行銷投資的影響，本季我們的息稅前利潤率為 14.2%。我們的 SDA 業務在假期期間處於有利位置，我們預計息稅前利潤率將持續強勁。儘管今年迄今行業疲軟，但在新產品線的支持下，我們有信心實現約 7.5% 的指導淨銷售額成長。

Turning to slide 12, I'm pleased to review our exciting new lineup of KitchenAid Small Appliances are iconic. KitchenAid stand mixer launched the unique evergreen design, which has been hit with enthusiast everywhere. We launched new additions to the KitchenAid, go code less system, a removable and interchangeable battery-powered, all KitchenAid go appliances, providing you with the power you need for every creation. No code needed the new top-down shopper citrus user and hand blender with accessories unlock even more possibilities, both inside and out of the kitchen. These new product launches will continue to fuel our growth expectations.

轉向投影片 12，我很高興回顧我們令人興奮的新系列 KitchenAid 小家電是標誌性的。 KitchenAid立式攪拌機推出了獨特的常青設計，受到各地愛好者的歡迎。我們推出了 KitchenAid go 無代碼系統的新產品，這是一款可拆卸且可互換的電池供電的所有 KitchenAid go 電器，為您提供每次創作所需的動力。無需任何代碼，新的自上而下的購物柑橘用戶和帶有配件的手持式攪拌機可以在廚房內外解鎖更多可能性。這些新產品的推出將繼續推動我們的成長預期。

On slide 13, let me review our reaffirmed full year guidance. Our net sales guidance of approximately $16.9 billion, alongside approximately 6% for your ongoing EBIT margins are unchanged. Additionally, we are reaffirming our ongoing earnings per share of approximately $12 and free cash flow guidance of approximately $500 million. Our guidance includes updated expectations for our adjusted effective tax rate. We now expect an adjusted effective full year tax rate of approximately negative 18% to 22%. We have further refined the estimated benefits of our tax planning strategies since closing the Europe transaction. With the unique tax impacts of the significant legal entity restructuring we were able to execute with the European transaction behind us. We expect our adjusted effective tax rate to be approved ultimately 20% to 25% starting in 2025. However, our cash tax rate will be significantly lower. We are confident that we have the right actions in place and are reaffirming our full year guidance.

在投影片 13 上，讓我回顧我們重申的全年指引。我們的淨銷售額指引約為 169 億美元，以及您持續的息稅前利潤率約為 6% 不變。此外，我們重申我們持續的每股盈餘約為 12 美元，自由現金流指引約為 5 億美元。我們的指導包括對調整後的有效稅率的最新預期。我們現在預計調整後的全年有效稅率約為負 18% 至 22%。自完成歐洲交易以來，我們進一步完善了稅務規劃策略的預期收益。憑藉重大法人實體重組的獨特稅務影響，我們能夠在歐洲交易的支持下執行。我們預計從 2025 年開始，調整後的有效稅率最終將獲得批准，為 20% 至 25%。我們相信我們已採取正確的行動，並重申我們的全年指導。

Turning to slide 14, let me recap our commitments 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 brand water filtration business in Brazil closed on July first. Combined, these two actions generated more than $500 million of cash, 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 continue our debt reduction initiatives and paid dividends of approximately $400 million in 2024. With the $500 million of term loan repayment in April, we have made significant debt reduction progress since the acquisition of instant greater with approximately $1 billion debt paid down inclusive of the term loan. We have a total of 1.8 billion of current maturities in 2025 with a weighted average interest rate of approximately 6%. We expect to pay down a portion of our current maturities and refinance a portion a lower interest rate in 2025. As we look ahead, we have ample space in our flexible debt ladder to optimize our refinancing plants. We are fully on track to deliver our 2024 capital allocation priorities and position Whirlpool well to strengthen our balance sheet. Now I will turn the call over to Mark.

轉向投影片 14，讓我回顧一下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，計劃剝離巴西 Brastemp 品牌水過濾業務的計劃已於 7 月 1 日結束。這兩項行動合計產生了超過 5 億美元的現金，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。我們已準備好繼續我們的債務削減計劃，並在2024 年支付了約4 億美元的股息。了重大進展，並支付了約10 億美元的債務下降包括定期貸款。到 2025 年，我們共有 18 億當前到期債券，加權平均利率約為 6%。我們預計將在 2025 年償還部分當前到期債務，並以較低的利率進行部分再融資。我們完全有望實現 2024 年資本配置優先事項，並使惠而浦處於有利地位，以加強我們的資產負債表。現在我將把電話轉給馬克。

Thanks, Jim. And turning to slide 15, let me review what you heard today. We had a solid quarter and are reiterating our full-year guidance. We are pleased to have delivered sequential margin expansion globally. And most importantly, in North America, we feel good about our pricing actions and cost plants, both of which are on track. Why we continue to navigate a challenging macro environment. We see the housing market clearly positioned for an eventual rebalance. US housing market is structurally under supplied by

謝謝，吉姆。轉向投影片 15，讓我回顧一下您今天聽到的內容。我們度過了一個穩定的季度，並重申了我們的全年指導。我們很高興在全球實現利潤率連續擴張。最重要的是，在北美，我們對我們的定價行動和成本工廠感到滿意，兩者都步入正軌。為什麼我們繼續應對充滿挑戰的宏觀環境。我們看到房地產市場已明確定位為最終的再平衡。美國房地產市場結構性供應不足

3 to 4 million units. High interest rates are causing low turnover. The existing home sales at multi-decade lows. Home equity values are near all-time highs, meaning home owners should have confidence in investing in their homes as rates become more favorable with lower interest rate This pressure will ease our strong position with eight of a top 10 US homebuilders and an exciting new lineup of product positions us well to be benefit from a housing recovery and improving discretionary demand. Our teams are executing well and we're confident in our strategy, which enables us to capitalize on the US housing market recovery that we expect will drive significant benefits for our MDA North America business. Meantime, we're focused on what is the thing controlled. We have demonstrated the ability to take out costs were $500 million of fixed cost removed from our operating structure since 2019. And remain on track with our expectation for approximately $300 million cost takeout this year.

3至400萬台。高利率導致低營業額。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最高點，這意味著房主應該對投資自己的房屋充滿信心，因為隨著利率降低，利率變得更加有利。家以及令人興奮的新陣容中的強勢地位的產品使我們能夠從房地產復甦和可自由支配需求的改善中受益。我們的團隊執行良好，我們對我們的策略充滿信心，這使我們能夠利用美國房地產市場的復甦，我們預計這將為我們的 MDA 北美業務帶來顯著的效益。同時，我們關注的是受控制的事物。自 2019 年以來，我們已經證明了我們有能力從我們的營運結構中削減 5 億美元的固定成本。

We continue to see significant opportunities to optimize costs across our products through input costs, design, manufacturing and supply chain overall, and we have a right strategy and operational priorities to navigate the challenging environment in North America business, SDA and the international businesses have a long runway for us growth and continued to be very important to our overall portfolio. We are focused on reducing our debt levels while returning cash to shareholders. We're confident in our strategy and the steps we're taking both short and long term to deliver value for shareholders. And that concludes our formal remarks. And we will now open it up for questions.

我們繼續看到透過整體投入成本、設計、製造和供應鏈優化我們產品成本的重大機會，我們有正確的策略和營運優先事項來應對北美業務、SDA 和國際業務充滿挑戰的環境。路很長，對我們的整體投資組合仍然非常重要。我們致力於降低債務水平，同時向股東返還現金。我們對我們的策略以及為股東創造價值而採取的短期和長期措施充滿信心。我們的正式發言到此結束。現在我們將開放提問。

Mr. periods.

經期先生。

At this time, I would like to remind everyone in order to ask a question, press star then the number one on your telephone keypad. Our first question comes from the line of David MacGregor from Longbow Research. Your line is open.

此時，我想提醒大家，要問，請按星號，然後按電話鍵盤上的數字一。我們的第一個問題來自長弓研究中心的大衛‧麥格雷戈。您的線路已開通。

Yes. Good morning, everyone. Thanks for taking my question.

是的。大家早安。感謝您提出我的問題。

Good morning, David.

早安，大衛。

Hi I guess first question is just on the consolidated EBIT margin EBIT margin progression. Excuse me, you had put a chart your deck last quarter indicating that the your 6% ongoing EBIT margin goal for the year included a 6.3% performance in 3Q. Your actual turned out to be about 5.8 was a 50 basis point variance that are representing approximately about 20 million, if my math is correct. So is that $20 million from the equity method investment loss offsetting what would have otherwise been on an on-target quarter, but I think more importantly, you've left the full year guidance, 6%. So if my math is correct, it implies and 8% fourth quarter margin performance and an exit run rate that would exceed your previous guidance of 8%. So is this a correct takeaway? And if so, what would be driving the better than expected Q4 margins?

您好，我想第一個問題只是關於綜合息稅前利潤率息稅前利潤率的進展。打擾一下，您上個季度的圖表顯示您今年 6% 的持續息稅前利潤率目標包括第三季 6.3% 的業績。如果我的數學正確的話，你的實際結果約為 5.8，即 50 個基點的方差，大約代表 2000 萬左右。那麼，權益法投資損失中的 2000 萬美元是否抵消了目標季度的損失，但我認為更重要的是，您已經留下了全年指導，即 6%。因此，如果我的數學正確，這意味著第四季度的利潤率為 8%，退出運行率將超過您之前 8% 的指導。那麼這是正確的結論嗎？如果是這樣，是什麼推動第四季利潤率比預期好？

Yes, David, this is Jim. And I'll kind of start and then you know, Mark can chime in here. I would say you're correct on your first assumption, is that? Yes, the difference in Q3 is almost purely you know what we saw from the results with our, you know, 25% stake in the media. Now as you look towards the full year in Q4 to begin with, as we've said, as you know, it's going to be approximately 6% or around 6%. But you know, as we go into the fourth quarter, what we do it effect as we do expect to continue to one see margin expansion, as we've talked about within North America, especially due to the pricing, but to a lot of our cost actions that we have driven. We also expect those to continue to accelerate. And then three, we don't expect to have the same level of impact a much lower less of level of impact from the EMEA. stake that we have. So those are the big drivers as we look from Q3 to Q4. I think the other thing you've got to remember as a company in Q3, we took out we talked about we reduced our inventory levels down significantly. And so, you know, as we go into Q4, we'll have a much more normalized production environment, which also helps us from a cost perspective and gives us better cost absorption leverage within the quarter.

是的，大衛，這是吉姆。我會開始，然後你知道，馬克可以在這裡插話。我想說你的第一個假設是對的，是嗎？是的，第三季的差異幾乎純粹是你知道我們從結果中看到的，你知道，我們持有媒體 25% 的股份。現在，當您展望第四季度全年時，正如我們所說，如您所知，它將約為 6% 或 6% 左右。但你知道，當我們進入第四季度時，我們所做的事情會產生影響，因為我們確實期望繼續看到利潤率擴張，正如我們在北美討論過的那樣，特別是由於定價，但由於很多我們推動的成本行動。我們也預計這些將繼續加速。第三，我們預期歐洲、中東和非洲地區的影響程度不會低很多。我們擁有的股份。從第三季度到第四季度，這些是主要的驅動因素。我認為作為一家公司在第三季度你必須記住的另一件事是，我們談到了我們顯著降低了庫存水準。因此，您知道，當我們進入第四季度時，我們將擁有更標準化的生產環境，這從成本角度來看也對我們有所幫助，並使我們在本季度內具有更好的成本吸收槓桿。

David Mac Mark here, maybe just adding to Jim's point on, first of all, on the Eurobond and just zooming out a little bit. Obviously, we all know Europe was a very significant transaction of the year and impact our full-year numbers in many different ways. As we indicate, it's among the cash flow. And we carry about the EUR250 million of negative on cash flow differs us on it hurts us right now, libido Mitch EBIT line, on which I want to emphasize, it's noncash relevant because it's just equity affiliates and it's a positive from a tax rate. So there's a lot of moving out of the Eurobond. Bad will be in 25. All normalize back to this year's numbers are impacted many different ways. And I would say particularly European losses, fair associated with it integration efforts not entirely surprising again, not cash relevant. And important thing is if you take all the noise around the margin, I think it all comes down to the underlying now our North America margin progression and just to you all know it, but it's just in Q1, we had 5.6 margin in North America in Q2 to 6.39, Q3 7.3. And in Q4, as you heard before, we guiding 8 to 9% of that is by any definition of Varian pressure profit margin progression. We all know it's not a destination with but There's no debate about this one. But given what is still a very challenging environment particularly. Yes, I think that is just evidence that our actions which we put in place, we'd have attraction.

大衛麥克馬克在這裡，也許只是補充了吉姆的觀點，首先是歐洲債券，只是稍微縮小了一點。顯然，我們都知道歐洲是今年非常重要的交易，並以多種不同方式影響我們的全年數據。正如我們所指出的，它屬於現金流量。我們的現金流負值約為2.5 億歐元，這與我們現在的情況不同，利比多米奇息稅前利潤線，我想強調的是，它與現金無關，因為它只是股權附屬公司，而且稅率是正值。因此，大量資金撤離歐洲債券。 25 年後情況會很糟糕。我想說的是，特別是歐洲的損失，與整合努力相關的公平性並不完全令人驚訝，與現金無關。重要的是，如果你考慮到利潤率周圍的所有噪音，我認為這一切都歸結為現在我們北美利潤率進展的根本原因，而且大家都知道這一點，但這只是在第一季度，我們在北美的利潤率為5.6第二季為 6.39，第三季為 7.3。在第四季度，正如您之前所聽到的，我們指導的 8% 到 9% 是根據瓦里安壓力利潤率進展的任何定義。我們都知道這不是一個目的地，但對此沒有爭議。但考慮到環境仍然非常具有挑戰性。是的，我認為這只是我們採取的行動具有吸引力的證據。

Thanks for that. I guess just as a follow-up, I wanted to ask about the SDA. segment. Third-quarter sales were down 3%, but margins were down about 400 basis points. You noted the need to support the new product launches with marketing investments. So that makes sense. I guess, does this imply a stronger fourth quarter seasonal pattern for this business? And just given the amount of support that you're spending now in 3Q and I guess, given that might be driven by new products, should we expect a stronger than normal incremental margin in that segment to 4Q?

謝謝你。我想作為後續行動，我想詢問 SDA 的情況。部分。第三季銷售額下降 3%，但利潤率下降約 400 個基點。您指出需要透過行銷投資來支持新產品的發布。所以這是有道理的。我想，這是否意味著該業務第四季的季節性模式更強？考慮到您現在在第三季支出的支援金額，我想，考慮到這可能是由新產品推動的，我們是否應該預期該細分市場到第四季的增量利潤率會高於正常水平？

Yes, David, it's overall. I would say we're exactly on track towards our full year guidance on KitchenAid SDA. As you know, we guided slightly north of 7% revenue growth and around 15 or 15 plus a margin. And right now we feel very good above that number for Full year. It is just night and you know it very well. It's the seasonality with small domestic appliances is heavily heavily skewed towards filed September, October, November, particular October, November. So, one or two days of shipping to trade partner. In Colum makes a massive different plus minus, but you take, but to cause combined on the entire year, we feel very good about where we are. And yes, you're correct. We significantly increased our marketing investments to support the new product launches, and we see a very good response, both consumers and trade with flooring and star ratings. So we feel very good about Q4. I wouldn't expect that I usually disproportionately if it will be Q4 will be in line on the full year guidance.

是的，大衛，總體而言。我想說，我們完全朝著 KitchenAid SDA 的全年指導方向前進。如您所知，我們的指導收入成長略高於 7%，加上利潤率約為 15 或 15%。現在我們感覺全年的成績都非常好。現在只是夜晚，你很清楚。小家電的季節性嚴重偏向9月、10月、11月，特別是10月、11月。因此，運送到貿易夥伴的時間為一兩天。在哥倫姆，我們取得了巨大的不同加減，但你可以考慮，但綜合全年來看，我們對自己的處境感覺非常好。是的，你是對的。我們大幅增加了行銷投資以支持新產品的發布，我們看到了消費者和地板貿易以及星級評價的良好反響。所以我們對第四季感覺非常好。我通常不會期望第四季度會符合全年指引。

Our next question comes from the line of Susan Maklari from Goldman Sachs. Your line is open.

我們的下一個問題來自高盛的 Susan Maklari。您的線路已開通。

Thank you. Good morning, everyone.

謝謝。大家早安。

Thanks, Susan.

謝謝，蘇珊。

My first question is just taking a bit deeper into the North American MDA margins. Can you talk a bit more about that price mix dynamic that you saw? You mentioned coming out of the second quarter. You were saying that one to two points of pricing given the program that you flagged earlier this year. Are you on track with that? And then how should we think about relative to the next component in there and other factors to that margin as well as

我的第一個問題是更深入了解北美 MDA 利潤。能多談談您看到的價格組合動態嗎？你提到了第二季的表現。您說，鑑於您今年早些時候標記的計劃，定價為一到兩個點。你在這方面走上正軌嗎？然後我們應該如何考慮相對於那裡的下一個組件以及該裕度的其他因素以及

Susan in general terms, the picture is very similar to what we indicated last earnings call. We have two drivers from a price mix in North America, which work in the opposite direction. The positive changes which we had on our promotional pricing back to indicate is fully in place, and we see that fully in our numbers. That's a positive. On the negative side, do you still have continued mixed weakness? Met this largely coming from a very I mean, against historic comparison at very high share of replacement demand, in particular on mobile margin, weaker product categories and also SKUs to have a negative mix on the totality of that is a positive sequential pricing on. But right now we have and that's what we saw in Q3, which what we saw in Q2. And I would expect a similar picture in Q4 also. Okay.

蘇珊 總的來說，情況與我們上次財報電話會議上表示的非常相似。我們在北美的價格組合中有兩個驅動因素，它們的作用方向相反。我們在促銷定價方面所做的積極改變已經完全到位，我們在數據中充分看到了這一點。這是積極的。從消極的方面來看，您是否仍然存在持續的混合弱勢？我的意思是，與歷史比較相比，更換需求的比例非常高，特別是在行動利潤、較弱的產品類別以及整體上具有負面組合的 SKU 方面，這是一個積極的順序定價。但現在我們已經做到了，這就是我們在第三季和第二季看到的情況。我預計第四季也會出現類似的情況。好的。

That's helpful. And I will mention in your commentary that you did hear that discretionary demand fall further in the quarter relative to what you've seen in the first half. Could you talk a bit more about that? What what do you think is driving up the health of the consumer and and any of the broader factors that are maybe going on in the U.S. that are coming through?

這很有幫助。我將在您的評論中提到，您確實聽說本季的可自由支配需求相對於上半年看到的情況進一步下降。能多談談嗎？您認為是什麼推動了消費者的健康以及美國可能正在發生的任何更廣泛的因素？

And Susan, again, its mark on again, this is particularly related to North America. I would say that the health of a consumer but sentiment of consumer across the world, actually some pretty good shape. It's North America and U.S. in particular on. And obviously, that's a combination. But general housing markets, I mean, as evident yet yesterday with existing home sales is still in a very soft spots. And that's we all know is ultimately driven by mortgage rates. So that's one part. But then on the pre-election consumer sentiment, it is just not good. And that is now the Pioneer surprise. We've seen similar pattern in Veloce electric and natural before how many messages he and I said anybody living you actually exposed to a negative news every day and negative messages every day, and that does not lift consumer sentiment. Now Now the good news is or hopefully But good news is in primary elections. We saw pretty quick recovery of consumer sentiment once we elections are over irrespective of outcome, but it was so that's kind of consumer sentiment being low. And we've seen in September you made in October and Tom and probably until the election. So that will be going to continue to see.

蘇珊再次標記，這與北美尤其相關。我想說的是，消費者的健康狀況和全球消費者的情緒其實都相當不錯。尤其是北美和美國。顯然，這是一個組合。但我的意思是，整體房地產市場昨天已經很明顯，現有房屋銷售仍然處於非常疲軟的狀態。眾所周知，這最終是由抵押貸款利率驅動的。這就是一部分。但就選舉前的消費者情緒而言，情況並不好。這就是先鋒現在的驚喜。我們在 Veloce 電動和自然中看到了類似的模式，之前他和我說過，生活在你身邊的任何人實際上每天都會接觸到負面新聞和負面訊息，這並沒有提升消費者情緒。現在現在是好消息，或希望是好消息，但好消息是初選。選舉結束後，無論結果如何，我們都看到消費者信心很快恢復，但消費者信心確實很低。我們在 9 月看到了你在 10 月和湯姆所做的事情，可能直到選舉。所以這將繼續看到。

And I'd just add to what Mark said is that we still believe strongly in the long term housing demand dynamics for the U.S. And again, as we've pointed out, that a lot of this is right now, as Mark pointed out, a median existing home sales again yesterday came in on a multi-decade type alone . So we are in a trough right now. But if you really look this looks at this on a much longer term, Spectrum housing is still undersupplied. We do believe the dynamics of the market, especially as interest rates begin to come down will become much more positive. But it's not going to be an overnight process.

我想補充馬克所說的，我們仍然堅信美國的長期住房需求動態。數十年類型中。所以我們現在正處於低谷。但如果你真正從長遠來看，Spectrum 住房仍然供應不足。我們確實相信市場的動態，特別是隨著利率開始下降，將變得更加積極。但這不會是一個一夜之間的過程。

Our next question comes from the line of Michael Dah from RBC Capital Markets. Your line is open.

我們的下一個問題來自加拿大皇家銀行資本市場部的 Michael Dah。您的線路已開通。

Hi, thanks for taking my questions. I just want to, I guess, some market you're saying on North America 8% to 9%. I either Jim or Mark, I think what we're kind of missing in the bridges. You clearly have a tax benefit for the full year that's contributing to EPS, but you're holding your EPS guide, your own your EBIT guide, but you're improving your tax rate. So, is there just it kind of rounding and some of the EBIT numbers are, can you just help us bridge to them help us make that math fit a little bit better?

您好，感謝您回答我的問題。我想，我只是想，你所說的北美某個市場 8% 到 9%。我要么是吉姆，要么是馬克，我認為我們在橋樑中缺少什麼。顯然，您全年的稅收優惠對每股收益有貢獻，但您持有每股收益指南，您自己的息稅前利潤指南，但您正在提高稅率。那麼，是否存在某種舍入和一些息稅前利潤數字，您能否幫助我們與它們建立橋樑，幫助我們使數學擬合得更好一些？

Yes, Mike, this is this is Jim. And I would say yes, to a certain extent, kind of like in the first question I answered earlier, some of it is a bit around it because we've said, you know, we expect the EBIT margin to be approximately 6%. As we talked about, we did have unexpected impact within the quarter due to our mistake. So that wasn't really and what we originally thought of and that's a non-cash item, and we do expect that to improve over time. I think if you look at North America and you look at what we expect to drive significant improvement, continued improvement the fourth quarter, which costs to be a positive will have the continued benefits to pricing. We expect costs to continue to be a positive there. But also I talked about the inventory reduction that we did and we will get benefit from just that the cost absorption and leverage that we get from running our production that at more normalized, we are closer to where demand is. So those are I think you are correct in saying that some of it is rounding and some of it is what we know didn't expect from me up. But you know, also we do expect certain things to improve the North American margins in Q4.

是的，麥克，這是吉姆。我會說是的，在某種程度上，就像我之前回答的第一個問題一樣，其中一些有點圍繞它，因為我們已經說過，你知道，我們預計息稅前利潤率約為6% 。正如我們所說，由於我們的錯誤，我們確實在本季度產生了意想不到的影響。所以這不是我們最初的想法，而是一個非現金項目，我們確實希望隨著時間的推移，情況會有所改善。我認為，如果你看看北美，你會看到我們期望在第四季度推動顯著改善和持續改善，而成本是積極的將對定價帶來持續的好處。我們預計那裡的成本將繼續呈正值。但我也談到了我們所做的庫存減少，我們將從運行生產中獲得的成本吸收和槓桿中受益，在更標準化的情況下，我們更接近需求。所以我認為你說的有些是四捨五入的，有些是我們知道的我沒有想到的，這是正確的。但你知道，我們也確實預期某些事情會提高第四季北美的利潤率。

Okay. Got it. Then just an asset balance sheet question that if we look at the cash balance last quarter, the $1.2 billion roughly in cash isn't the disclosure in the queue? Is that about 750 million of that was was a combination of your stake and more pool India? And then what's being held in Brazil, which you may or may not have a free access to online an ongoing basis. Can you give us an update on the $1.1 billion on 3Q cash? How much is actually in the U.S.? And how should we be thinking about the non-US cash and your ability to access that, repatriate it repatriate that that in a tax-efficient way, gas so and.

好的。知道了。那麼資產負債表的問題是，如果我們查看上季度的現金餘額，大約 12 億美元的現金不是在隊列中披露的嗎？其中約 7.5 億是您的股份和印度更多股份的組合嗎？然後是巴西正在舉辦的活動，您可能會也可能不會持續免費線上訪問。您能否向我們介紹第三季 11 億美元現金的最新情況？美國實際上有多少？我們應該如何考慮非美國現金以及您獲取這些現金的能力，將其匯回國內，以一種節稅的方式將其匯回國內，天然氣等等。

Yes, sure. Point. When you look at where our cash is at the end of Q3 versus Q2, it's relatively similar because most of the time, whatever cash we have in the US, we do use to bring down our commercial paper borrowings, which is on our line, our notes payable line. So we're at very similar levels of cash in terms of geographic locations. Our ability to access the cash around the world is driven by a lot of different things, legal entity structures and other stuff. On a longer-term basis, we are able to access a lot of this cash through various things as we can repatriate earnings or do other things with it. But in certain parts of the world, such as India and places like that, where we have a more significant minority ownership, a lot of that cash does stay there. Now on the other hand, you have to look at what we're doing with some of that cash. That's in places like India, we've talked about we've continued to invest and take a larger stake in Elocta India. We continue to invest more in that business. So we're putting that cash to work in places like that to grow those business and continue to invest there because as said, it is a little bit more difficult to repatriate, but it's also a part of the world where we really do want to grow. So there's no significant difference from where we were at the end of the last quarter. Now as we look at Q4, a big portion of that cash we generate in Q4 will be within the U.S. And this generated both by our KitchenAid business, which has a very strong fourth quarter, as well as by our US North America majors business that also tends to generate significant cash within the fourth quarter.

是的，當然。觀點。當你看到我們在第三季末和第二季末的現金情況時，會發現它相對相似，因為大多數時候，無論我們在美國擁有多少現金，我們都會用來減少商業票據借款，這與我們的情況相符，我們的應付票據行。因此，就地理位置而言，我們的現金水準非常相似。我們在世界各地獲取現金的能力是由許多不同的因素、法律實體結構和其他因素所驅動的。從長遠來看，我們能夠透過各種方式獲得大量現金，因為我們可以匯回收入或用它來做其他事情。但在世界某些地區，例如印度和類似的地方，我們擁有更重要的少數股權，而許多現金確實留在那裡。另一方面，你必須看看我們用這些現金做什麼。在像印度這樣的地方，我們已經談到我們將繼續投資並在 Elocta India 中持有更多股份。我們繼續加大對該業務的投資。因此，我們將這些現金投入到這樣的地方，以發展這些業務並繼續在那裡投資，因為如上所述，匯回國內有點困難，但它也是我們真正想要的世界的一部分。因此，與上季末的情況沒有顯著差異。現在，當我們看第四季度時，我們在第四季度產生的現金的很大一部分將來自美國，這既是由我們的KitchenAid 業務產生的，該業務在第四季度表現非常強勁，也由我們的美國北美主要業務產生。

Michael, it's Marc. Just maybe adding to Jim's point on, of course, then by definition, all about the cash balance follows our cash flow in the quarter. So but Q4 cash balance, of course, by definition, will look very different than Q3, driven by what Jim was just saying. It's just how we're working capital through as well. Business, in particular, North America, you basically you produce the inventory, but just kind of absorbing cash and menu start selling and collect the receivables, which typically turns in Q4, that's every year we're saying I've been particularly with our SDA. business, but also the seasonality of North America business that cash cycle particular impact North America and therefore from a cash balance in the US.

邁克爾，是馬克。當然，也許只是補充吉姆的觀點，然後根據定義，所有關於現金餘額的內容都遵循我們本季的現金流。因此，當然，從定義上來說，第四季度的現金餘額看起來將與第三季度有很大不同，這是由吉姆剛才所說的推動的。這也是我們營運資金的方式。業務，特別是北美，你基本上是生產庫存，但只是吸收現金和菜單開始銷售並收取應收賬款，這通常在第四季度週轉，每年我們都說我一直特別關注我們的業務SDA。業務，而且還有北美業務的季節性，現金週期特別影響北美，因此來自美國的現金餘額。

Your next question comes from the line of Laura Champine from Loop Capital. Your line is open.

您的下一個問題來自 Loop Capital 的 Laura Champine。您的線路已開通。

Thanks for taking my question today is on top line for small appliances. I think you guys call out that it's an industry problem that led to the decline on a year-on-year basis. Can you confirm that that he held market share and it will give us a little more color on what's going on with the industry that would cause that? Tom, we can in the quarter.

感謝您今天提出我的問題，這是關於小家電的首要問題。我想你們會指出這是一個行業問題導致了同比下降。您能否確認他佔有市場份額，這會讓我們對導致這種情況的行業發生的情況有更多的了解？湯姆，我們可以在這個季度。

kind of no rights, Mark here. I mean very similar to what I said before, our full-year guidance on KitchenAid, small domestic, we feel very comfortable about that revenue guide of north of 7% on. So I wouldn't read too much in Q 3 because there's so much about the sell in shipments in terms of what happens in the last one and two weeks of September first. First wanted to two weeks of October, we invested a lot of them and the new products and the new products are really finding good traction with exceptionally strong consumer ratings. So it's as you point out that it's the fully automatic semi-automatic, especially acreage, which evergreen stand mixer if you haven't seen it, look it up on that. But rising grain cokers, as I read a whole set of new bonds. But we feel very, very good about. And that's why we have no concerns about the fundamental revenue growth. So don't read too much into the queue free ins and outs.

有點沒有權利，馬克在這裡。我的意思是與我之前所說的非常相似，我們對 KitchenAid 的全年指導，小型國內，我們對 7% 以上的收入指導感到非常滿意。因此，我不會在第三季度閱讀太多內容，因為就 9 月最後一周和兩週內發生的情況而言，有很多關於出貨量銷售的內容。首先是十月的兩週，我們投入了大量資金，新產品和新產品確實找到了良好的吸引力，消費者評級異常強勁。因此，正如您所指出的那樣，它是全自動半自動，尤其是面積，如果您還沒有見過它，請查找它。但當我讀到一整套新債券時，穀物焦化廠正在上漲。但我們感覺非常非常好。這就是為什麼我們不擔心基本收入成長。因此，不要過度了解隊列空閒的來龍去脈。

Understood. And on the North American mangers side and why not lowered the bar for revenues there for this year, just given just called out, some of the macro numbers are making new rather historic lows on existing home, etc.

明白了。在北美經理方面，為什麼不降低今年的收入標準，剛剛提出，一些宏觀數據正在使現有房屋等創下新的歷史低點。

Yes. Laura Marc again for North America with particular focus on the margin expansion. That's the theme which we had for the entire year. On. And frankly, we basically Inmet environment. We don't want to lose market share and wood-based want to keep a stable top line. So yes, there's of course, I'm into knowledge and on the Q4 revenue line, driven by what we said earlier about the consumer strength in the consumer discretionary demand in Q4. But right now, primary focus on getting the margin expansion to a healthy level, which I think we're on track and right now, in particular market share. And then subsequently revenue side. We in particular the last kind of couple of months, we feel better and better. And so we as you all know, it off to our pricing promotional changes in April, we lost a little bit of share, probably less than we expected initially and ever since we've been recovering. So I would say our revenue in Q4 and what we saw in Q3 is pretty much in line that would we expect market to be.

是的。勞拉·馬克（Laura Marc）再次針對北美市場，特別關注利潤率的擴張。這就是我們全年的主題。在。坦白說，我們基本上就是Inmet環境。我們不想失去市場份額，而木基產品則希望保持穩定的收入。所以，是的，當然，我對知識和第四季度的收入線很感興趣，這受到我們之前所說的第四季度消費者非必需品需求的消費者力量的推動。但現在，主要關注點是將利潤率擴張到健康的水平，我認為我們現在正在步入正軌，特別是市場份額。然後是收入方面。尤其是最後幾個月，我們感覺越來越好。眾所周知，由於四月份的定價促銷變化，我們失去了一點份額，可能比我們最初預期的要少，而且自從我們開始復甦以來。因此，我想說我們第四季的營收和第三季的營收與我們預期的市場狀況基本一致。

And Laura, as we said, you know, within Q4 here in the US with the election cycle going on, we do just expect an unusual pattern of demand that that will be a little bit slower and then should pick up significantly like we've seen historically. So again, that's why it makes this an unusual Q4. But to Mark's point in aggregate, across the whole quarter, we do expect it to be relatively in line with what our previous expectations have been.

勞拉，正如我們所說，你知道，在美國第四季度，隨著選舉週期的進行，我們確實預計需求會出現一種不尋常的模式，即會稍微慢一點，然後應該會像我們之前那樣顯著回升歷史上看到的。再說一遍，這就是為什麼第四季會變得不尋常。但就馬克的觀點而言，從整個季度來看，我們確實預期它與我們先前的預期相對一致。

Your next question comes from the line of Rafe Jadrosich from Bank of America. Your line is open.

您的下一個問題來自美國銀行的 Rafe Jadrosich。您的線路已開通。

Hi, good morning. Thanks for taking my questions.

嗨，早安。感謝您回答我的問題。

Hi Rafe, Good Morning

嗨拉夫，早安

so on fuel prices have come down quite a bit here on. Can you just remind us of the potential tailwind that you would see on how you how would you walk in? And then when and how much of that could potentially be period away.

因此，這裡的燃油價格已經下降了很多。您能否提醒我們您會看到您如何走進去的潛在順風？然後，其中的時間和程度可能需要一段時間才能實現。

So let me I'm assume on a little bit more. Are you only have a broader raw materials side on, as you know, kind of different raw materials have different kinds of different opportunities to lock in? Quote-unquote, I'm certain prices up by a long shot, biggest material items, steel, where we tend to have annual all in some cases, even longer contracts and particularly North America on in South America and Asia were a little bit shorter term, but that's by long short and sweet, as you probably know from the past two big around Q3 to Q4 when we tried to lock in these long-term contracts on oil is particularly of course, impacting plastic, which is our number one supply typically were acquired. I think it's so the ability to hedge longer is just very limited. So we took this quarter out and right now, I would say in the full year base, as we indicated and right now, in the short term, it's probably moving sideways. I do not have not huge up or down. Fuel is much smaller piece in our overall cost equation and we hedge it out a little bit longer. So but yes, coming down a little bit on the spot helps a little bit. But again, we're kind of hedged on fuel to some extent. So put it all together because there's a lot of moving parts also zinc and copper, etc., for the full year of raw materials, exactly where we had in mind, i.e., bases largely neutral on the metro trends, which we also see right now in Q4

所以讓我多假設一點。如您所知，您是否只有更廣泛的原材料方面，不同的原材料有不同的不同機會可以鎖定？引用-不引用，我確信價格上漲的可能性很大，最大的材料項目，鋼鐵，在某些情況下我們往往有年度所有合同，甚至更長的合同，特別是北美，南美和亞洲的合同要短一些從長遠來看，但這是多空和甜蜜，正如你可能從過去第三季度到第四季度的兩個大事件中知道的那樣，當我們試圖鎖定這些長期石油合約時，當然特別影響了塑料，這是我們的第一大供應通常是被收購的。我認為，因此對沖更長時間的能力非常有限。因此，我們把這個季度排除在外，現在，我想說的是，正如我們所指出的，在全年的基礎上，現在，短期內，它可能會橫向移動。我沒有沒有巨大的上漲或下跌。燃料在我們的整體成本方程式中所佔的比例要小得多，我們對沖它的時間要長一些。所以，但是，是的，當場下降一點會有一點幫助。但同樣，我們在某種程度上對燃料進行了對沖。所以把它們放在一起，因為對於全年的原材料來說，還有很多移動部件，還有鋅和銅等，這正是我們所想到的，即基本對地鐵趨勢保持中立，我們也認為是正確的現在在第四季

Can you Know, anything on 25 where you just where steel prices are now? Or is it too early

您能知道 25 日鋼鐵價格現在的情況嗎？還是現在還太早

while roughly? At my first, I was surprised it took us always have now to get into a question of 25 feet apart for edge it. First of all, we know we give the guidance in January 25 and when we give you all the details, but on a full-year basis, 24, we did not expect major motion raw materials on. Is there some small fee favorability on some raw materials which were trying to lock in? Yes, but I wouldn't overstate it at this point, but there's let's put it this way bearish on based positive elements, which we're trying to capture now contracts, but not yet of a massive magnitude,

大約？第一次的時候，我很驚訝我們現在總是要陷入 25 英尺相距的邊緣問題。首先，我們知道我們在 1 月 25 日給出了指導，當時我們向大家提供了所有詳細信息，但在全年基礎上，即 24 日，我們並沒有預期會出現重大動議原材料。對於一些試圖鎖定的原材料是否有一些小額費用優惠？是的，但我現在不會誇大這一點，但讓我們以這種方式看跌基於積極因素，我們現在正試圖抓住這些積極因素，但尚未達到大規模，

I think to do well, January is to kind of give a more comprehensive picture and to start piecemeal. And some of the factors really doesn't give that comprehensive picture because there are a lot of moving parts, as Mark highlighted, some of the materials as we get closer to the year and even within the year, there's still a degree of variability to, and that's why we really wait until January to give you that or a holistic picture.

我認為要做好，一月就是要提供更全面的情況並逐步開始。有些因素確實無法提供全面的信息，因為有很多變化的部分，正如馬克強調的那樣，隨著我們接近這一年，甚至在這一年之內，一些材料仍然存在一定程度的變化。為什麼我們要等到一月才給您整體情況。

Our next question comes from the line of Sam Darkatsh from Raymond James. Your line is open.

我們的下一個問題來自 Raymond James 的 Sam Darkatsh。您的線路已開通。

Good morning, and this is Darkatsh Sam. Thanks for taking the question.

早安，我是達卡什·山姆。感謝您提出問題。

Hi Darkatsh

嗨達卡什

Hi Darkatsh

嗨達卡什

First, I'd like to make sure we have for understanding the 4Q guidance correctly for like for like sales. It looks like it's about up 6%, a fairly meaningful inflection. Is that entirely volume driven or is there a mix for other components? And that plus six?

首先，我想確保我們正確理解第四季度的同類銷售指引。看起來上漲了 6% 左右，這是一個相當有意義的變化。這是完全由體積驅動還是有其他組件的混合？那加上六？

I think the biggest part of it, if you think about one on a global basis, you do have strong industry demand outside the U.S. And we've talked about that. You know to as you look at, we talked a little bit about the small domestic appliance business before and that in aggregate, we expect the back half of the year to be in line with Q3 was a little bit less openings. Q4 will be a little bit stronger. So you've got a mix and then you've got just, you know, some just natural seasonality in there. But I'd say those are probably the big components that drive what we expect. You know that the improvement in revenue to be in before? And then in terms of productivity and cost saving us wrap going higher and 4Q,

我認為其中最重要的部分是，如果你從全球角度考慮，你會發現美國以外的行業確實有強勁的需求，我們已經討論過這一點。你知道，正如你所看到的，我們之前討論過一些小家電業務，總的來說，我們預計今年下半年將與第三季度保持一致，即空缺數量將減少一些。 Q4會更強一些。所以你有一個混合，然後你知道，裡面有一些自然的季節性。但我想說，這些可能是推動我們期望的重要組成部分。您知道收入的改善要在之前嗎？然後就生產力和成本節約而言，我們的第四季將走得更高，

can you just provide more detail on exactly why that's improving so much sequentially, especially maybe if you're working down inventory on selling off higher cost units?

您能否提供更多詳細信息，說明為何連續改善如此之多，特別是如果您正在通過出售更高成本的單位來減少庫存？

Well, I'd say, you know, when you look at it on a sequential basis, the biggest drivers that we see in cost and I'll kind of go back to is our organizational simplification efforts that we've rolled out. Again, we started in Q2. We continue to execute that in Q3, and you have a full benefit now coming in Q4 or so. That's one of the biggest pieces that you have is a lot of the actions we've taken this year get to a point of where we're getting the full benefit within our fourth quarter. I'd say the other thing when I talked about, you know, the again, the inventory reduction you're looking at this sequentially, we just will have higher production levels, which allows us to get better leverage within our factories means we'll absorb more cost in Q4 because now that we've got our inventory levels to the right point for year end, we can bring our production levels back to normal. So those are the two big sequential drivers from a cost perspective.

好吧，我想說，你知道，當你按順序查看時，我們在成本方面看到的最大驅動因素是我們已經推出的組織簡化工作。同樣，我們從第二季開始。我們將在第三季度繼續執行該計劃，您將在第四季度左右獲得全部收益。這是我們所擁有的最重要的部分之一，我們今年採取的許多行動已經達到了我們在第四季度內獲得全部收益的程度。當我談到另一件事時，你知道，你依次看到的庫存減少，我們只會有更高的生產水平，這使我們能夠在工廠內獲得更好的槓桿意味著我們'我們將在第四季吸收更多成本，因為現在我們的庫存水準已達到年底的正確水平，我們可以使生產水準恢復正常。因此，從成本角度來看，這是兩個重要的連續驅動因素。

maybe just adding to Jim's point about the inventory and what is this year different in Q4, even compete two years. And again, the most simplistic terms, I know production or if you produce it, drives productivity. And so depending on when you reduce or increase inventory has a pretty big impact on the measure productivity in the usual normal years, we typically take the inventory start reducing production in Q4 this year, Because by all means certain that we took down the inventory in the production a little bit early in the year. As a result, our September inventory levels are more in line with what we typically would see it in October. It kind of mid-November. And what it all translates into about our Q4 production levels actually will be reasonably healthy. So that has it has an impact on the cost productivity issue. But isn't this a change a little bit just because we've been a little bit more cautious on inventory.

也許只是補充吉姆關於庫存的觀點以及今年第四季的不同之處，甚至競爭兩年。再說一次，最簡單的術語是，我知道生產，或者如果你生產它，就會提高生產力。因此，根據通常情況下減少或增加庫存的時間對衡量生產率有相當大的影響，我們通常會在今年第四季度開始減少庫存，因為無論如何可以肯定，我們在今年的生產有點早。因此，我們 9 月的庫存水準與我們通常在 10 月看到的庫存水準更加一致。時間大約是11月中旬。這一切意味著我們第四季度的生產水準實際上將相當健康。這對成本生產力問題有影響。但這不是因為我們對庫存更加謹慎而做出的一點改變嗎？

Our next question comes from the line of Michael Rehaut from JPMorgan. Your line is open.

我們的下一個問題來自摩根大通的 Michael Rehaut。您的線路已開通。

Michael, your line is open.

邁克爾，您的線路已開通。

Sorry about like likely they'll call Internet for you.

抱歉，他們可能會為您撥打網路。

Your next question comes from the line of Eric Bosshard from Cleveland Research. Your line is open.

您的下一個問題來自克利夫蘭研究中心的 Eric Bosshard。您的線路已開通。

Thanks. Just wondering if you can help connect the dots a little bit better. I understand the benefits of higher production levels in 4Q. I guess what I'm trying to get a better sense of as a from a market share perspective and then from promotions, a market that you were pretty clear of prioritizing margin, but also feel good about market share as you're running the business and for 4Q, is there a different mindset? Or I'm just trying to figure out how you think about those three things together.

謝謝。只是想知道您是否可以幫助更好地連接這些點。我了解第四季更高生產水準的好處。我想我想從市場份額的角度和促銷活動的角度更好地了解這個市場，您非常清楚優先考慮利潤，但在經營業務時也對市場份額感到滿意而對於4Q來說，有什麼不同的心態嗎？或者我只是想弄清楚你如何看待這三件事。

Yes. Eric, this is so first of all, again, all parts of our own global world, a little bit different about our market share is very strong in Latin America. India is very strong. We picked up and we feel very good market share and in particular, premium small domestic appliance in the US, as I mentioned before, after we did the pricing promotional changes in April to May, we took a little bit of dip in market share and have been recovering ever since. And we feel good about the trend where we are in terms of particularly as we think about Q4. And it comes back to everything, which we said before is missed. Q4 is a little bit unusual because in the US it is an election year, so it's comparable previous election years, but it's not the same as in 2022 as such, we are on, you know, but kind of lift which you might get out of promotion in the current period are just less than usual because of consumer sentiment is just not there. And therefore, we kind of continue on what we said in Q2 and Q3, we repurchased promotion that we think we create value, i.e., when we get the lift than the current environment, that is just very limited. Our focus is on margin expansion.

是的。艾瑞克，首先，我們全球世界的所有部分都是如此，但我們的市場份額在拉丁美洲非常強大，略有不同。印度非常強大。我們的市場份額有所回升，我們感覺非常好，特別是美國的高端小家電，正如我之前提到的，在我們四月至五月進行價格促銷調整後，我們的市場份額略有下降，從那以後一直在康復。我們對當前的趨勢感到滿意，特別是當我們考慮到第四季度時。又回到了一切，我們之前說過的都被錯過了。第四季有點不尋常，因為在美國，這是一個選舉年，所以它與之前的選舉年相當，但與 2022 年不一樣，我們正在進行，你知道，但你可能會得到某種提升由於消費者情緒不高，當前時期的促銷活動比平常少。因此，我們繼續我們在第二季和第三季所說的，我們重新購買了我們認為創造價值的促銷活動，也就是說，當我們獲得比當前環境更高的提升時，那是非常有限的。我們的重點是利潤率擴張。

Thank you.

謝謝。

And there are no further questions. I'll now turn it back over for to our CEO for closing remarks.

沒有其他問題了。現在我將把它轉交給我們的執行長做總結發言。

All right. Thank you. First of all, all for joining us today on I mean, you heard us talking today before quite a bit. We feel good about the margin expansion, which we had sequentially both on a global and North America level on particularly North America, which just given the challenging environment. Particular local market is not an easy one, not a given month, but I feel very good about how our organization executed the actions which we put in place. And I think they give us good momentum into Q4 and next year. And we all know that is an environment where housing recovery will come from. We all wish could come sooner than later, but it will come and we were very, very well set up for housing recovery. And I would repeat what I said before, there's no company like Whirlpool, which benefited more from housing recovery in US. So that in mind on Appreciate you all joining and talk to you sometime soon.

好的。謝謝。首先，今天加入我們，我的意思是，你們今天已經聽過我們很多次談話了。我們對利潤率的擴張感到滿意，我們在全球和北美層面上都連續實現了利潤率擴張，特別是在北美，這只是考慮到充滿挑戰的環境。特定的當地市場並不容易，不是一個特定的月份，但我對我們的組織如何執行我們所採取的行動感到非常滿意。我認為它們為我們進入第四季和明年提供了良好的動力。我們都知道，這是住房復甦的環境。我們都希望早點到來，但它終究會到來，而且我們已經為住房復甦做好了充分準備。我要重複我之前說過的話，沒有一家公司像惠而浦一樣，從美國房地產復甦中受益更多。因此，請記住，感謝大家加入並很快與您交談。

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。