Worthington Enterprises Inc (WOR) 2023 Q2 法說會逐字稿

Good morning, and welcome to the Worthington Industries Second Quarter Fiscal 2023 Earnings Conference Call. (Operator Instructions) This conference is being recorded at the request of Worthington Industries. If anyone objects, you may disconnect at this time. I'd now like to introduce Marcus Rogier, Treasurer and Investor Relations Officer. Mr. Rogier, you may begin.

早上好，歡迎來到 Worthington Industries 2023 財年第二季度收益電話會議。 （操作員說明）本次會議是應 Worthington Industries 的要求錄製的。如果有人反對，您此時可以斷開連接。我現在想介紹財務主管兼投資者關係官 Marcus Rogier。羅吉爾先生，您可以開始了。

Thank you, Chris. Good morning, everyone, and welcome to Worthington Industries Second Quarter Fiscal 2023 Earnings Call. On our call today, we have Andy Rose, Worthington's President and Chief Executive Officer; Joe Hayek, Worthington's Chief Financial Officer; and Geoff Gilmore, Worthington's Chief Operating Officer.

謝謝你，克里斯。大家早上好，歡迎來到 Worthington Industries 2023 財年第二季度財報電話會議。今天，Worthington 總裁兼首席執行官安迪·羅斯 (Andy Rose) 應邀出席了我們的電話會議； Worthington 首席財務官 Joe Hayek；和 Geoff Gilmore，Worthington 的首席運營官。

Before we get started, I'd like to remind everyone that certain statements made today are forward-looking within the meaning of the 1995 Private Securities Litigation Reform Act. These statements are subject to risks and uncertainties that could cause actual results to differ from those suggested.

在開始之前，我想提醒大家，根據 1995 年《私人證券訴訟改革法案》，今天發表的某些聲明具有前瞻性。這些陳述受風險和不確定性的影響，可能導致實際結果與建議的結果不同。

We issued our earnings release yesterday after the market close. Please refer to it for more detail on those factors that could cause actual results to differ materially. Today's call is being recorded, and a replay will be made available later on our worthingtonindustries.com website.

我們在昨天收市後發布了收益報告。有關可能導致實際結果出現重大差異的因素的更多詳細信息，請參閱它。今天的通話正在錄音中，稍後將在我們的 worthingtonindustries.com 網站上提供重播。

At this point, I will turn the call over to Joe to kick things off.

在這一點上，我會把電話轉給喬來解決問題。

Thank you, Marcus, and good morning, everyone. I'll go over the consolidated results and provide some additional color on the building products, consumer products and sustainable energy solutions businesses, and then Geoff Gilmore will go through Steel's results. Geoff, as many of you know, is our current Chief Operating Officer and will be the CEO of the Steel business when we complete the planned separation of our businesses.

謝謝馬庫斯，大家早上好。我將回顧一下綜合結果，並為建築產品、消費品和可持續能源解決方案業務提供一些額外的顏色，然後 Geoff Gilmore 將回顧一下 Steel 的結果。正如你們許多人所知，傑夫是我們現任首席運營官，當我們完成計劃中的業務分離後，他將擔任鋼鐵業務的首席執行官。

In Q2, we reported earnings of $0.33 a share versus $2.15 a share in the prior year quarter. There were some unique items that impacted the quarterly results, including the following. We incurred pretax expenses of $9 million or $0.14 a share related to the planned separation of our steel processing business, which we expect to complete by early calendar 2024.

在第二季度，我們報告的每股收益為 0.33 美元，而去年同期為每股 2.15 美元。有一些獨特的項目影響了季度業績，包括以下內容。我們產生了 900 萬美元或每股 0.14 美元的稅前費用，這些費用與我們鋼鐵加工業務的計劃分離有關，我們預計該分離將在 2024 年初完成。

We will quantify those costs each quarter going forward until the contemplated separation is complete. We also recognized incremental expenses of $0.01 per share related to our recent acquisition of Level5 tools and the earnout associated with that acquisition.

我們將在未來每個季度量化這些成本，直到完成預期的分離。我們還確認了與我們最近收購 Level5 工具相關的每股 0.01 美元的增量費用以及與該收購相關的收益。

And finally, we benefited by $0.04 a share due to restructuring gains associated with the divestiture of our WSP joint ventures last remaining steel processing facility. This compared to restructuring gains of $0.03 a share in the prior year quarter.

最後，由於與剝離我們的 WSP 合資企業最後剩下的鋼鐵加工廠相關的重組收益，我們每股收益 0.04 美元。相比之下，去年同期的重組收益為每股 0.03 美元。

Excluding these unique items, we generated earnings of $0.44 a share in the current quarter compared to $2.12 a share in the prior year. In addition, in Q2, we had inventory holding losses estimated to be $53 million or $0.81 a share compared to inventory holding gains of $42 million or $0.61 a share in the prior year quarter, an unfavorable swing of $95 million, which is $1.42 a share.

排除這些獨特的項目，我們在本季度的每股收益為 0.44 美元，而去年同期為每股收益 2.12 美元。此外，在第二季度，我們的庫存持有損失估計為 5300 萬美元或每股 0.81 美元，而去年同期的庫存持有收益為 4200 萬美元或每股 0.61 美元，不利波動為 9500 萬美元，即每股 1.42 美元.

Consolidated net sales in the quarter of $1.2 billion decreased 5% from the prior year, primarily due to the lower average selling prices in Steel Processing, combined with lower volumes, partially offset by the inclusion of Temple Steel.

本季度的綜合淨銷售額為 12 億美元，比去年同期下降 5%，這主要是由於鋼鐵加工的平均售價較低，加上銷量下降，部分被 Temple Steel 的納入所抵消。

Our gross profit for the quarter decreased to $106 million from $185 million in the prior year and gross margin was 9% versus 15%, primarily due to the swing from inventory holding gains to losses in steel processing.

我們本季度的毛利潤從去年的 1.85 億美元下降到 1.06 億美元，毛利率為 9%，而去年同期為 15%，這主要是由於庫存持有收益轉為鋼鐵加工虧損。

Our adjusted EBITDA in Q2 was $64 million, down from $168 million in Q2 of last year. And our trailing 12-month adjusted EBITDA is now at $455 million.

我們在第二季度調整後的 EBITDA 為 6400 萬美元，低於去年第二季度的 1.68 億美元。我們過去 12 個月的調整後 EBITDA 現在為 4.55 億美元。

With respect to cash flows and our balance sheet, cash flow from operations was $133 million in the quarter and free cash flow was $108 million. We've generated over $360 million in free cash flows in the last 12 months.

關於現金流和我們的資產負債表，本季度運營現金流為 1.33 億美元，自由現金流為 1.08 億美元。在過去的 12 個月裡，我們產生了超過 3.6 億美元的自由現金流。

During the quarter, we invested $24 million on capital projects, paid $15 million in dividends, received $24 million in proceeds from asset sales and received $55 million in dividends from our unconsolidated JVs.

本季度，我們在資本項目上投資了 2400 萬美元，支付了 1500 萬美元的股息，從資產出售中獲得了 2400 萬美元的收益，並從我們未合併的合資企業獲得了 5500 萬美元的股息。

Like in Q1, the dividends we received from our unconsolidated JVs exceeded their equity earnings during the quarter as their working capital levels have normalized, allowing them to pay out earnings that were not distributed in the prior fiscal year.

與第一季度一樣，我們從未合併的合資企業收到的股息在本季度超過了他們的股權收益，因為他們的營運資本水平已經正常化，使他們能夠支付上一財年未分配的收益。

Looking at our balance sheet and liquidity position. Funded debt at quarter end of $699 million decreased $7 million sequentially and interest expense was down $1 million also on a sequential basis.

查看我們的資產負債表和流動性狀況。季度末融資債務為 6.99 億美元，環比減少 700 萬美元，利息支出也環比減少 100 萬美元。

We are operating with low leverage. And our net debt to trailing EBITDA leverage ratio is roughly 1.25x. We also have ample liquidity and ended Q2 with $130 million in cash and $675 million in availability under our revolving credit facilities. Yesterday, the Board declared a dividend of $0.31 per share for the quarter, which is payable in March of 2023.

我們以低杠桿經營。我們的淨債務與尾隨 EBITDA 槓桿比率約為 1.25 倍。我們還擁有充足的流動性，在第二季度結束時，我們的循環信貸額度下有 1.3 億美元的現金和 6.75 億美元的可用資金。昨日，董事會宣布本季度派發每股 0.31 美元的股息，將於 2023 年 3 月支付。

I'll now spend a few minutes on each of the businesses. In Consumer Products, net sales in Q2 were $154 million, up 9% from $141 million in the prior year quarter. The increase was driven by higher average selling prices, which were partially offset by lower volumes. Adjusted EBIT for the consumer business was $13 million in the quarter and EBIT margin was just under 9% compared to $18 million and 12.5% last year.

我現在將花幾分鐘時間介紹每項業務。在消費品方面，第二季度的淨銷售額為 1.54 億美元，比去年同期的 1.41 億美元增長 9%。這一增長是由平均售價上漲推動的，但部分被銷量下降所抵消。本季度消費者業務的調整後息稅前利潤為 1300 萬美元，息稅前利潤率略低於 9%，而去年為 1800 萬美元和 12.5%。

There were 2 primary drivers for the decline in consumers' profitability. First, retail sales slowed, not materially, but it is clear that consumers are watching their discretionary spending. In addition, and more impactfully, our retail customers reduced their inventory levels during the quarter.

消費者盈利能力下降有兩個主要驅動因素。首先，零售銷售放緩，雖然不是實質性放緩，但很明顯消費者正在關注他們的可自由支配支出。此外，更具影響力的是，我們的零售客戶在本季度降低了庫存水平。

The result was a significant decline in customer orders, which led to lower volumes and lower fixed cost absorption. In addition, the quarter was negatively impacted by $1 million of expenses related to our acquisition of Level5, including the write-up of inventory to fair market value.

結果是客戶訂單顯著下降，導致銷量下降和固定成本吸收降低。此外，本季度受到與我們收購 Level5 相關的 100 萬美元費用的負面影響，包括將庫存增記至公允市場價值。

While the quarterly results for the consumer business were not as strong as we would have liked, that team continues to do an excellent job managing through a challenging environment. Additionally, we have started to see customer inventory levels stabilized, which we believe will lead to more seasonally normal volumes going forward.

雖然消費者業務的季度業績不如我們預期的那麼強勁，但該團隊在充滿挑戰的環境中繼續出色地進行管理。此外，我們已經開始看到客戶庫存水平趨於穩定，我們相信這將導致未來出現更多的季節性正常銷量。

Building Products generated net sales of $142 million in Q2, up 17% from $121 million in the prior year quarter. The increase was driven by higher average selling prices, which were partially offset by slightly lower volumes.

建築產品在第二季度產生了 1.42 億美元的淨銷售額，比去年同期的 1.21 億美元增長了 17%。這一增長是由平均售價上漲推動的，但部分被銷量略有下降所抵消。

Adjusted EBIT for Building Products was $41 million in the quarter and adjusted EBIT margin was 29% compared to $55 million and 45% in Q2 of last year. The decrease in EBIT and margin was primarily driven by lower equity earnings in our ClarkDietrich and WAVE joint ventures, which were down $11.4 million and $3.4 million, respectively, compared to very strong results in the prior year quarter.

本季度建築產品的調整後息稅前利潤為 4100 萬美元，調整後息稅前利潤率為 29%，而去年第二季度為 5500 萬美元和 45%。息稅前利潤和利潤率的下降主要是由於我們的 ClarkDietrich 和 WAVE 合資企業的股權收益較低，與去年同期非常強勁的業績相比，分別下降了 1140 萬美元和 340 萬美元。

This softness was partially offset by improvements in our wholly owned businesses, which saw operating income increased $1.4 million or 31% year-over-year due to higher average selling prices and a favorable product mix.

這種疲軟部分被我們全資擁有的業務的改善所抵消，由於更高的平均售價和有利的產品組合，營業收入同比增長 140 萬美元或 31%。

Similar to what we saw in Consumer, many of our product lines in Building Products saw customers decrease their orders due to higher-than-optimal inventory levels. In 2021 and early 2022, when supply chains were uncertain and tight and demand from end users continued to grow, many of our customers ordered at or above their expected demand levels. And those same customers are now rationalizing their on-hand inventories while demand has moderated with the economy.

與我們在消費者中看到的情況類似，我們在建築產品中的許多產品線都看到客戶由於高於最佳庫存水平而減少了訂單。在 2021 年和 2022 年初，當供應鏈不確定且緊張且終端用戶的需求持續增長時，我們的許多客戶的訂單達到或超過了他們的預期需求水平。而這些客戶現在正在合理化他們的現有庫存，而需求隨著經濟的發展而放緩。

While the demand outlook is unique by end market and will be impacted by the broader economy, our team continues to execute at a very high level. And we believe that as customer inventory levels stabilize, we will see a return to more seasonally normal demand trends.

雖然終端市場的需求前景是獨一無二的，並將受到更廣泛經濟的影響，但我們的團隊繼續以非常高的水平執行。我們相信，隨著客戶庫存水平趨於穩定，我們將看到季節性需求趨勢回歸正常。

In Sustainable Energy Solutions, net sales in Q2 of $38 million were up 15% compared to $33 million in the prior year quarter due to increased volumes and higher average selling prices. The business generated adjusted EBITDA of $1 million in the current quarter, which was up slightly from the prior year as the favorable impact of higher average selling prices was partially offset by higher production costs.

在可持續能源解決方案方面，由於銷量增加和平均售價上漲，第二季度的淨銷售額為 3800 萬美元，比去年同期的 3300 萬美元增長 15%。該業務在本季度產生了 100 萬美元的調整後 EBITDA，較上年略有上升，因為較高的平均售價的有利影響被較高的生產成本部分抵消了。

Despite a continued challenging operating environment in Europe, that team continues to do an excellent job executing, we remain very optimistic about the hydrogen and alt fuels ecosystems and our SES business.

儘管歐洲的運營環境持續充滿挑戰，但該團隊繼續出色地執行工作，我們對氫和替代燃料生態系統以及我們的 SES 業務仍然非常樂觀。

At this point, I will turn it over to Geoff.

在這一點上，我將把它交給傑夫。

Thanks, Joe. In Steel Processing, net sales of $842 million were down 10% from $938 million in Q2 of last year, primarily due to lower average selling prices and lower volumes, which were partially offset by the inclusion of the Temple Steel acquisition.

謝謝，喬。在鋼鐵加工領域，淨銷售額為 8.42 億美元，比去年第二季度的 9.38 億美元下降了 10%，這主要是由於平均售價下降和銷量下降，這部分被 Temple Steel 收購的影響所抵消。

Steel prices peaked in the latter half of 2021 at over $1,900 per ton. And recently, we're trading under $700 per ton. Our total shipped tons were down 13% compared to last year's second quarter, driven primarily by lower tolling volume with the mills and the exit of our consolidated JV, WSP.

鋼鐵價格在 2021 年下半年達到每噸 1,900 美元以上的峰值。最近，我們的交易價格低於每噸 700 美元。與去年第二季度相比，我們的總運輸噸數下降了 13%，這主要是由於工廠的來料加工量減少以及我們合併後的合資企業 WSP 的退出。

Direct tons in Q2 were relatively flat compared to the prior year quarter and were 54% of the mix compared to 47% in the prior year quarter. From a demand perspective, we continue to see stability and signs of growth in automotive, but did experience some weakness in our construction end market demand, which has been impacted by the slowdown in both residential and nonresidential construction.

與去年同期相比，第二季度的直接噸數相對持平，佔組合的 54%，而去年同期為 47%。從需求的角度來看，我們繼續看到汽車的穩定和增長跡象，但我們的建築終端市場需求確實出現了一些疲軟，這受到住宅和非住宅建築放緩的影響。

In Q2, Steel reported an adjusted EBIT loss of $17 million compared to a $72 million gain in the prior year quarter. The large year-over-year decrease was driven by lower direct spreads, which were negatively impacted by the inventory holding losses that Joe mentioned earlier, estimated to be $53 million in the quarter compared to $42 million last year, an unfavorable swing of $95 million.

在第二季度，Steel 報告調整後的息稅前利潤為 1700 萬美元，而去年同期為 7200 萬美元。同比大幅下降的原因是直接利差較低，這受到喬之前提到的庫存持有損失的負面影響，估計本季度為 5300 萬美元，而去年為 4200 萬美元，不利波動為 9500 萬美元.

Though steel prices have stabilized because of lag in price indices, we anticipate we will see moderate inventory holding losses in Q3, which could approximate or be slightly lower than the loss we reported in Q3 of fiscal year 2022, which was $25 million.

儘管由於價格指數滯後，鋼鐵價格已經企穩，但我們預計我們將在第三季度看到適度的庫存持有損失，這可能接近或略低於我們在 2022 財年第三季度報告的損失，即 2500 萬美元。

It's been 1 year since we purchased Temple Steel, and it continues to prove to be an excellent addition to our steel processing business. The Temple leadership team is doing an outstanding job managing the business and executing on strategic initiatives to meet the growing demand for increased electrification in many of our markets.

我們收購 Temple Steel 已經 1 年了，它繼續被證明是對我們鋼鐵加工業務的極好補充。 Temple 領導團隊在管理業務和執行戰略計劃方面做得非常出色，以滿足我們許多市場日益增長的電氣化需求。

Lastly, I am, so, proud of all of our teams as they remained focused on keeping our people safe and running efficient operations, all while doing an excellent job delivering for our customers.

最後，我為我們所有的團隊感到自豪，因為他們一直專注於確保我們的員工安全和高效運營，同時為我們的客戶提供出色的服務。

At this point, I will turn it over to Andy.

在這一點上，我會把它交給安迪。

Thank you, Geoff, and good morning, everyone. Our fiscal second quarter was somewhat challenging, driven by significant steel price declines and inventory destocking at several of our larger consumer and building products customers that stockpiled product to offset supply chain challenges.

謝謝你，傑夫，大家早上好。我們的第二財季有些挑戰，原因是鋼材價格大幅下跌以及我們幾個較大的消費品和建築產品客戶的庫存去庫存化，這些客戶儲存產品以抵消供應鏈挑戰。

These short-term trends appear to be waning. And we are optimistic that this quarter represents a trough in earnings and we will enter calendar 2023 with some solid momentum. End market demand remained steady across most of our products and markets despite the continued debate around where the economy is headed as a result of the Federal Reserve's continued rate hikes.

這些短期趨勢似乎正在減弱。我們樂觀地認為本季度是收益的低谷，我們將以強勁的勢頭進入 2023 年。儘管美聯儲持續加息導致經濟走向的爭論仍在繼續，但我們大多數產品和市場的終端市場需求仍保持穩定。

Higher rates will clearly impact some markets, but recall there's another $1.3 trillion of approved government investment spending from the Inflation Reduction Act, the Chips and Science Act and the Infrastructure Investment and Jobs Act underway. Some of this money will almost certainly benefit our various businesses, although the extent is hard to quantify.

更高的利率顯然會影響某些市場，但回想一下，還有另外 1.3 萬億美元的政府投資支出已獲批准，這些支出來自《降低通脹法案》、《芯片與科學法案》以及《基礎設施投資與就業法案》。這些錢中的一部分幾乎肯定會惠及我們的各種業務，儘管程度很難量化。

I want to express my gratitude for our employees who continue to go above and beyond to deliver for our customers despite the ebb and flow of input costs and supply chains. As evidence of our hard work, Worthington received 3 outstanding awards during the quarter.

我想對我們的員工表示感謝，儘管投入成本和供應鏈起伏不定，他們仍繼續超越並為我們的客戶提供服務。作為我們辛勤工作的證明，Worthington 在本季度獲得了 3 個傑出獎項。

Investors' Business Daily voted us as their top ESG Company of 2022. Newsweek named us to their list of America's most responsible companies for 2023 and Computerworld named us as the Best Place to Work in IT for 2023. All of these accomplishments reflect the strength and quality of our golden rule culture and the hard work and dedication that our employees bring to work every day. Congratulations, and thank you.

《投資者商業日報》將我們評為 2022 年最佳 ESG 公司。《新聞周刊》將我們評為 2023 年美國最負責任的公司名單，《計算機世界》將我們評為 2023 年 IT 領域最佳工作場所。所有這些成就都反映了我們的實力和我們的黃金法則文化的質量以及我們員工每天為工作所付出的辛勤工作和奉獻精神。祝賀你，謝謝你。

Last quarter, we announced an exciting plan to separate our steel processing business into its own public company. We are calling this initiative Worthington 2024 with the goal of standing up 2 financially strong and strategically well-positioned companies to unleash their full potential.

上個季度，我們宣布了一項激動人心的計劃，將我們的鋼鐵加工業務拆分為自己的上市公司。我們將這一倡議稱為 Worthington 2024，其目標是建立 2 家財務實力雄厚且戰略定位良好的公司，以充分發揮其潛力。

Our team is working hard. And we are on track to make that happen. Once complete, we will have a market-leading business in consumer products, building products and sustainable energy poised to capitalize on key trends in sustainability, technology, construction and outdoor living.

我們的團隊正在努力工作。我們正在努力實現這一目標。一旦完成，我們將在消費品、建築產品和可持續能源領域擁有市場領先的業務，隨時準備利用可持續發展、技術、建築和戶外生活的主要趨勢。

With higher margins and lower asset intensity, this business should benefit from premium sector multiples. Worthington Steel is and will continue to be a best-in-class steel processor with excellent growth opportunities in automotive light-weighting and electrical steel laminations, positioned to take advantage of fast-growing trends in electrification, sustainability and infrastructure spending.

憑藉更高的利潤率和更低的資產密集度，該業務應受益於優質行業倍數。 Worthington Steel 是並將繼續成為一流的鋼鐵加工商，在汽車輕量化和電工鋼疊片方面擁有極好的增長機會，能夠利用電氣化、可持續性和基礎設施支出的快速增長趨勢。

In anticipation of the planned separation in early 2024, we have been strengthening our balance sheet by building cash, so that both companies have financial flexibility to maximize their potential. We do not anticipate any material changes to our modest leverage and ample liquidity mindset for both companies. And we are likely to continue with similar capital allocation strategies once the planned separation is complete.

考慮到 2024 年初的計劃分離，我們一直在通過積累現金來加強我們的資產負債表，以便兩家公司都具有財務靈活性以最大限度地發揮其潛力。我們預計兩家公司的適度槓桿率和充足的流動性心態不會有任何重大變化。一旦計劃的分離完成，我們可能會繼續採用類似的資本配置策略。

Both businesses will be run with our philosophy and Golden Rule principles and utilize the Worthington business system of transformation, innovation and acquisitions to drive growth and shareholder value.

這兩項業務都將遵循我們的理念和黃金法則原則，並利用沃辛頓的轉型、創新和收購業務系統來推動增長和股東價值。

So while the quarter was challenging, primarily due to the rapid decline in steel prices, we are well capitalized and poised for a return to better results. Demand is solid. And when combined with our market strength and excellent teams, our future is bright. To all of our customers, suppliers, employees, shareholders and other stakeholders, I hope you share in our excitement for where we are headed.

因此，雖然本季度充滿挑戰，主要是由於鋼鐵價格的快速下跌，但我們資本充足，並準備好恢復更好的業績。需求穩固。結合我們的市場實力和優秀的團隊，我們的未來是光明的。對於我們所有的客戶、供應商、員工、股東和其他利益相關者，我希望你們能分享我們對前進方向的興奮。

We'll now take any questions.

我們現在將回答任何問題。

(Operator Instructions) Our first question is from Phil Gibbs with KeyBanc Capital Markets.

（操作員說明）我們的第一個問題來自 KeyBanc Capital Markets 的 Phil Gibbs。

Question firstly is just on seasonality. You pointed out that there was some sizable destocking in your recent quarter, notably in your consumer businesses and then to some extent, in construction.

首先是關於季節性的問題。您指出最近一個季度出現了相當大的去庫存，特別是在您的消費業務中，然後在一定程度上在建築業中。

I think the third quarter from a volume standpoint is typically a little lower than the November quarter, if I'm thinking about that correctly, or pretty in line with it. So you're saying relative to the second quarter, we should expect that those similar seasonal patterns should play out versus where you're at right now?

我認為，從數量的角度來看，第三季度通常會比 11 月的季度略低，如果我沒有想錯的話，或者與它相當一致。所以你是說相對於第二季度，我們應該預期那些類似的季節性模式應該與你現在所處的位置相比較？

I think that's fair. I think some seasonality returns. And we do think that not 100%, but most of the destocking is done and so sequentially, we see a little bit of upside.

我認為這很公平。我認為一些季節性回歸。我們確實認為不是 100%，但大部分去庫存已經完成，因此我們看到了一點點上行空間。

In terms of the seasonality being a little bit positive in the third quarter versus the second, okay.

就第三季度相對於第二季度的季節性而言，好吧。

Sorry. So seasonality is relatively flat. But consumers saw more destocking earlier. It'll building products might take a little more time because the seasonally normal growth there on the wholly-owned businesses certainly is more like March, April, May.

對不起。所以季節性相對平淡。但消費者早些時候看到了更多的去庫存。構建產品可能需要更多時間，因為全資企業的季節性正常增長肯定更像是 3 月、4 月和 5 月。

That makes sense. And then on the inventory swings this past quarter, you guys have called out a $50 million headwind, maybe a little bit more versus neutral.

這就說得通了。然後在上個季度的庫存波動中，你們提出了 5000 萬美元的不利因素，可能比中性因素多一點。

And then the impact is going to be less than half of that in the next quarter? Did I hear Geoff correctly there?

那麼下個季度的影響將不到一半？我在那裡沒聽錯 Geoff 嗎？

Yes, Phil, this is Geoff and you heard me correctly, $53 million headwind this current quarter. And I think this quarter, probably very similar to what you saw last year, Q3, and that would be approximately $25 million.

是的，菲爾，我是傑夫，你沒聽錯，本季度有 5300 萬美元的逆風。我認為本季度可能與去年第三季度非常相似，大約為 2500 萬美元。

So half, thank you. And then, the last one, this is just around the separation cost this quarter, $9 million pretax, I think $9 million - $10 million. Is that the level of spend we should see over the next 3 or 4 quarters, does that take or up -- take or down? Does that go up? And what are those costs largely covering right now?

減半，謝謝。然後，最後一個，這大約是本季度的離職成本，稅前 900 萬美元，我認為是 900 萬 - 1000 萬美元。這是我們在接下來的 3 或 4 個季度應該看到的支出水平，是增加還是增加——減少還是減少？那會漲嗎？這些成本現在主要包括哪些？

I think, Phil, that's a reasonable estimate. I mean those costs are out-of-pocket, advisory fee, transaction-oriented fees. And we think those costs will be in the neighborhood, ultimately. And it will ebb and flow a little bit between now and the end of the potential separation.

我認為，菲爾，這是一個合理的估計。我的意思是這些費用是自付費用、諮詢費、交易導向費用。我們認為這些成本最終將在附近。從現在到潛在分離的結束，它會起伏不定。

But $35 million to $45 million there is a good range. And then there might be some other costs associated with things that will happen down the line in terms of software, et cetera. But those shouldn't be all that material in addition to those numbers I gave you.

但是 3500 萬到 4500 萬美元之間有一個很好的範圍。然後可能還有一些與軟件等方面將發生的事情相關的其他成本。但是除了我給你的那些數字之外，那些不應該是所有的材料。

One cost, Phil, Joe didn't mention is there may be some financing costs down the road, too, once we determine the capital structures of the various companies and how that might go forward.

一個成本，菲爾，喬沒有提到，一旦我們確定了各個公司的資本結構以及未來的發展方式，未來可能還會有一些融資成本。

The next question is from Katja Jancic with BMO Capital Markets.

下一個問題來自 BMO Capital Markets 的 Katja Jancic。

First, can you talk a little bit about what -- how you see the margins developing and the non-steel processing business over the next quarter or 2, please?

首先，你能談談什麼——你如何看待下一季度或第二季度的利潤率發展和非鋼加工業務？

So margin-wise, in the consumer products business, again, when you have destocking and you have volumes as low as they are, it's harder to outrun your fixed cost. And so I think it should be sequentially no worse likely better than it was in Q2, although in Q3 of last year.

因此，從利潤率的角度來看，在消費品業務中，當你去庫存並且你的銷量盡可能低時，就很難超過你的固定成本。所以我認為它應該不會比第二季度更糟，儘管是去年第三季度。

In Consumer Products, we had some -- we had different input costs for steel in particular. So probably won't be as high as they were in Q3 of last year. And then building products, it's really the same story when Andy talked about trough in terms of revenues.

在消費品方面，我們有一些 - 特別是鋼鐵的投入成本不同。所以可能不會像去年第三季度那樣高。然後構建產品，當安迪談到收入低谷時，這確實是同一個故事。

It's going to be helpful there, just sort of seeing those things continuing to get a little bit more volume back. But we don't expect a V-shaped recovery by any means. But we do expect some sequential improvement in the building products space as well.

它會在那裡有所幫助，只是看到那些東西繼續獲得更多的音量。但我們不指望以任何方式出現 V 型複蘇。但我們確實預計建築產品領域也會有所改善。

Okay. And then, maybe quickly on the CapEx. I think you previously said it's going to be up 10% to 20% year-over-year. Does that still stand? Or can you provide an update on that?

好的。然後，也許很快就會在資本支出上。我想你之前說過它會同比增長 10% 到 20%。那還站得住腳嗎？或者你能提供更新嗎？

Yes. We're halfway through the year. We're still trending around $100 million for the year.

是的。我們已經過半年了。我們今年的趨勢仍然在 1 億美元左右。

Okay. And then just lastly, on the separation, what are kind of the next steps we should expect from you? Or what will we see next?

好的。最後，關於分離，我們應該期望您採取什麼樣的後續步驟？或者接下來我們會看到什麼？

Yes. So we've actually made a lot of progress in the current quarter, really focused in 2 areas: current state analysis and then starting to think about future state analysis for both companies.

是的。所以我們在本季度實際上取得了很多進展，真正專注於兩個領域：當前狀態分析，然後開始考慮兩家公司的未來狀態分析。

Probably the next major step for us is to start to populate the teams of both companies. And so that's likely there will be some announcements on that after the 1st of the year.

對我們來說，下一個重要步驟可能是開始填充兩家公司的團隊。因此，今年 1 號之後可能會發布一些公告。

You're welcome. And just to add on one thing. We said early 2024; we're tracking to be at or slightly ahead of that pace, so more to come.

不客氣。並且只是添加一件事。我們說 2024 年初；我們正在跟踪或略微領先於該速度，因此還會有更多。

(Operator Instructions) The next question is from John Tumazos with John Tumazos Very Independent Research.

（操作員說明）下一個問題來自 John Tumazos 和 John Tumazos Very Independent Research。

Thank you very much. Could you describe the $99 million in assets held for sale?

非常感謝。您能描述一下 9900 萬美元的待售資產嗎？

Yeah, give us a second there, John. We're firing up the supercomputer.

是的，等一下，約翰。我們正在啟動超級計算機。

While you're working on that when I see there's no buybacks for 2 straight quarters. Is there a legal restriction on buying back stock because of the separation? Or is there something another explanation?

當我看到連續兩個季度沒有回購時，你正在努力解決這個問題。因分居回購股票是否有法律限制？還是有其他解釋？

There was a legal restriction up until the point of announcement. As of today, we're under kind of normal trading windows. So there's no reason that we cannot be buying back stock.

在宣布之前存在法律限制。截至今天，我們處於一種正常的交易窗口之下。因此，我們沒有理由不能回購股票。

I will tell you that we have consciously made a decision not to purchase stock at least up to this point because we wanted to build our cash balance in anticipation of making sure that both companies are very well capitalized and can get the best credit rating that they can achieve out of the gate.

我會告訴你，至少到目前為止，我們有意識地做出了不購買股票的決定，因為我們希望建立現金餘額，以確保兩家公司的資本都非常充足，並且可以獲得他們認為最好的信用評級可以實現出門。

I don't think that necessarily means we won't buy stock, but that's been our bias up to this point. I will also say that I think at quarter end, we had built upwards of $130 million of cash. We continue to build cash. And a lot of that is driven by the decline in steel prices as we replace higher-priced steel with lower priced steel, but also we continue to earn pretty good money. So that the combination of those 2 things is helping us build that cash.

我認為這並不一定意味著我們不會購買股票，但到目前為止，這一直是我們的偏見。我還要說的是，我認為在季度末，我們已經積累了超過 1.3 億美元的現金。我們繼續積累現金。這在很大程度上是由鋼材價格下跌推動的，因為我們用價格較低的鋼材替代了價格較高的鋼材，但我們也繼續賺取了可觀的收入。因此，這兩件事的結合正在幫助我們積累現金。

And John, just to circle back to your first question, you scared us for a minute there. The assets held for sale, it's $5 million. I think you might be off one line on your printer there. It's $5 million it's just a building that we have for sale.

約翰，回到你的第一個問題，你在那裡嚇了我們一分鐘。持有待售資產為 500 萬美元。我想你的打印機可能掉線了。它是 500 萬美元，它只是我們要出售的建築物。

Was the reason for the sale of the Worthington Specialty Products in Michigan that U.S. Steel shut Great Lakes and at the Old Rouge Plant, they're running the melt, but not the hot strip mill. So the sources of still aren't the same.

在密歇根州出售 Worthington Specialty Products 的原因是美國鋼鐵公司關閉了 Great Lakes 和 Old Rouge 工廠，他們正在運行熔體，而不是熱帶鋼軋機。所以來源仍然不一樣。

That's not the reason for it, John. I mean we have a rigorous capital management program. And we're always looking at our businesses and do like they fit our strategic portfolio. Is it something that we want to remain in long-term?

約翰，這不是原因。我的意思是我們有嚴格的資本管理計劃。我們一直在審視我們的業務，並認為它們符合我們的戰略組合。這是我們想要長期保留的東西嗎？

And that was a business we just didn't feel like fit the portfolio strategically any longer. So it seemed in the best interest of shareholders to sell that versus continuing to run it.

那是一項我們不想再在戰略上適合投資組合的業務。因此，出售它而不是繼續經營它似乎符合股東的最大利益。

Looking at the on-balance sheet, inventory accounts, the middle account for work in process inventory fell a great deal with steel prices as one would have expected. The raw materials account at $305 million stayed very large and the finished product inventory at $190 million stayed very large.

從資產負債表來看，存貨賬戶，中間賬戶在製品庫存，正如人們預期的那樣隨著鋼材價格大幅下降。 3.05 億美元的原材料賬戶仍然非常大，1.9 億美元的成品庫存仍然非常大。

Should we assume that either you accumulated, unfinished steel inventory this year because the price was cheap or else you didn't have enough a year ago? And that with the finished products, are the customers buying a little less quickly now with the economy is slowing down? Or just give us a little flavor for the movements or the lack of movements in the raw materials and finished inventory accounts.

我們是否應該假設您今年因為價格便宜而積累了未完成的鋼材庫存，或者您一年前沒有足夠的庫存？對於成品，隨著經濟放緩，客戶的購買速度是否有所放緩？或者只是給我們一點關於原材料和成品庫存賬戶的運動或缺乏運動的味道。

Yes. So I think some of the answers to your question are embedded in your question. But the real sort of driver there on the raw side is we do have some seasonality. And you get ready and January tends to be a pretty big month on the steel processing side.

是的。所以我認為你的問題的一些答案已經嵌入到你的問題中。但在原始方面，真正的驅動力是我們確實有一些季節性。你準備好了，一月往往是鋼鐵加工方面相當重要的一個月。

Steel prices were going up and then coming down and you're buying in different buckets. And then, on the finished goods side, John, what you had there is really in the -- more driven by the consumer and the building products side of things.

鋼材價格先漲後跌，你在不同的桶中購買。然後，在成品方面，約翰，你所擁有的實際上是——更多是由消費者和建築產品方面驅動的。

I mean a year ago, we couldn't keep any inventory. We were -- had more orders than we could satisfy. And so we were literally setting things out the door as soon as we could make them. And so inventories just have returned to more normal levels, especially seasonally relative to where they were a year ago.

我的意思是一年前，我們無法保留任何庫存。我們 - 收到的訂單多於我們無法滿足的數量。因此，我們實際上是在製作完成後立即將其佈置在門外。因此，庫存剛剛恢復到更正常的水平，尤其是相對於一年前的季節性水平。

Thank you. Thank you. And I don't know what those advisers are charging you for $3 million a month. But it's a hell of a lot of money to tell you what you already know.

謝謝。謝謝。我不知道那些顧問每月向你收取 300 萬美元的費用。但是告訴你你已經知道的東西是一大筆錢。

It is definitely an expensive process. But we're very happy with the teams that we have helping us. And we're really happy with our own teams and the work that we've done thus far.

這絕對是一個昂貴的過程。但是我們對幫助我們的團隊感到非常滿意。我們對自己的團隊和迄今為止所做的工作感到非常滿意。

I'm just glad; I don't have any advice like that.

我很高興；我沒有這樣的建議。

(Operator Instructions) It appears that we have no further questions at this time. I'll turn it back to the presenters for any closing remarks.

（操作員說明）目前看來我們沒有其他問題了。我會把它轉回給主持人聽取任何結束語。

All right. Well, thanks, everyone, for joining us today. We wish everybody a Merry Christmas, a terrific Holiday Season and a Happy New Year. We'll talk to you in 2023.

好的。好吧，謝謝大家今天加入我們。我們祝大家聖誕快樂，度過一個美好的假期，並祝大家新年快樂。我們將在 2023 年與您交談。

Thank you.

謝謝。

Thanks.

謝謝。

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.

女士們，先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。