WESCO International,Inc.(WCC) 首席执行官 John Engel 于 2019年 第三季度业绩-收益电话抄本

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WESCO International, Inc. (NYSE:WCC) Q3 2019 Earnings Conference Call October 31, 2019 10:00 AM ET

WESCO International, Inc. (NYSE:WCC) Q3 2019 Earnings Conference Call October 31, 2019 10:00 AM ET

公司参与者

Will Ruthrauff - Director, Investor Relations
John Engel - Chairman, President and Chief Executive Officer
Dave Schulz - Senior Vice President and Chief Financial Officer

  • Will Ruthrauff - Director, Investor Relations
  • John Engel - Chairman, President and Chief Executive Officer
  • Dave Schulz - Senior Vice President and Chief Financial Officer

电话会议参与者

David Manthey - Baird
Deane Dray - RBC Capital Markets
Nigel Coe - Wolfe Research
Steve Tusa - JPMorgan
Michael McGinn - Wells Fargo
Robert Barry - Buckingham Research
Christopher Glynn - Oppenheimer

  • David Manthey - Baird
  • Deane Dray - RBC Capital Markets
  • Nigel Coe - Wolfe Research
  • Steve Tusa - JPMorgan
  • Michael McGinn - Wells Fargo
  • Robert Barry - Buckingham Research
  • Christopher Glynn - Oppenheimer

会议主持员

Good morning and welcome to the WESCO's Third Quarter 2019 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, this event is being recorded. I would like to now turn the conference over to Will Ruthrauff Director of IR. Please go ahead.

Good morning and welcome to the WESCO's Third Quarter 2019 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, this event is being recorded. I would like to now turn the conference over to Will Ruthrauff Director of IR. Please go ahead.

Will Ruthrauff

Will Ruthrauff

Thank you, Jacob. Good morning ladies and gentlemen. Thank you for joining us. Joining me on today's call are John Engel, Chairman President, and CEO; and Dave Schulz, Senior Vice President and Chief Financial Officer. This conference call includes forward-looking statements and therefore actual results may differ materially from expectations. For additional information on WESCO International please refer to the company's SEC filings, including the risk factors described therein.
The following presentation includes a discussion of certain non-GAAP financial measures. Information required by Regulation G of the Exchange Act with respect to such non-GAAP financial measures can be obtained via WESCO's website at wesco.com. Means to access this conference call via webcast was disclosed in the press release and was posted on our corporate website. Replays of this conference call will be archived and available for the next seven days.
With that, I'll turn the call over to John Engel.

Thank you, Jacob. Good morning ladies and gentlemen. Thank you for joining us. Joining me on today's call are John Engel, Chairman President, and CEO; and Dave Schulz, Senior Vice President and Chief Financial Officer. This conference call includes forward-looking statements and therefore actual results may differ materially from expectations. For additional information on WESCO International please refer to the company's SEC filings, including the risk factors described therein.

The following presentation includes a discussion of certain non-GAAP financial measures. Information required by Regulation G of the Exchange Act with respect to such non-GAAP financial measures can be obtained via WESCO's website at wesco.com. Means to access this conference call via webcast was disclosed in the press release and was posted on our corporate website. Replays of this conference call will be archived and available for the next seven days.

With that, I'll turn the call over to John Engel.

John Engel

John Engel

Thank you, Will. Good morning everyone and thanks for joining us for today's call. I'll lead off with a few high-level remarks and Dave will take you through our third quarter results and provide an update to our 2019 outlook. He will also provide our initial view on our 2020 top line sales.
We achieved record sales in the third quarter and sales in all of our end markets and geography grew on a year-over-year basis as expected. Importantly, we achieved these results in a more challenging economic and market environment. We were encouraged with our improvement results in the U.S. and strengthen industrial utility and data com.
Gross margin was under pressure and declined in the quarter, driven by next and the time lag to pass through the record levels of supplier price increases to customers this year. Dave will take you through the margin drivers in more detail in a few moments. We continue to focus on what we can control and effectively manage operating costs to deliver operating margin within our expected range an EPS growth of 8% versus prior year.
Free cash flow was also very strong as we expected driven by inventory reduction and strong collections in the third quarter. As you saw in our release earlier this morning, based on our September year-to-date results and our view of the end markets, we have narrowed the range for our full-year outlook for sales growth operating margin and EPS, while maintaining our outlook for free cash flow generation of at least 90% in net income.
Finally, as you know, we recently announced that Nelson Squires was appointed Senior Vice President and Chief Operating Officer. This organizational change is part of a broader streamlining of our operating structure that I will discuss a little bit later in this call. We're also very pleased to welcome a new member to our WESCO Board of Directors earlier this month. Laura Thompson joined our Board and she brings deep financial expertise and global operations experience to our Board.
With that, I will now turn the call over to Dave to provide further details on our third quarter results and our updated outlook for 2019, as well as our initial look at sales for 2020. Dave?

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谢谢,威尔。大家早上好,感谢您加入我们今天的电话。我将首先发表一些高级评论,戴夫将带您了解我们的第三季度业绩,并提供我们对2019年展望的更新。他还将提供我们对2020年顶线销售的初步看法。

我们在第三季度实现了创纪录的销售,并且在所有最终市场和地域中的销售均按预期同比增长。重要的是,我们在更具挑战性的经济和市场环境中取得了这些成果。我们对在美国取得的进步感到鼓舞,并加强了工业公用事业和数据通信。

毛利率受到压力并在本季度下降,这是受到下一年以及今年向客户突破供应商提价的创纪录水平的时间差的驱动。 Dave稍后将带您详细了解利润率驱动因素。我们继续致力于控制和有效管理运营成本,以实现运营利润率在我们预期范围内的EPS较上年增长8%。

自由现金流也非常强劲,因为我们预计在第三季度库存减少和收款强劲的推动下。正如您今天上午在发布会中所看到的那样,根据我们9月份至今的结果以及对最终市场的看法,我们缩小了销售增长,营业利润率和EPS的全年展望范围,同时保持了至少产生90%的净收入的自由现金流。

最后,正如您所知,我们最近宣布Nelson Squires被任命为高级副总裁兼首席运营官。这种组织上的变化是我们运营结构更广泛精简的一部分,我将在此电话会议的稍后部分讨论。我们也非常高兴地欢迎新成员加入本月初的WESCO董事会。劳拉·汤普森(Laura Thompson)加入了董事会,她为董事会带来了深厚的财务专业知识和全球运营经验。

因此,我现在将电话转给Dave,以提供有关我们第三季度业绩,2019年更新后的展望以及2020年销售额的初步信息的更多详细信息。Dave?

Dave Schulz

Dave Schulz

Thank you, John and good morning everyone. I'll start with an overview beginning on Page 4. Reported sales in the quarter were up 3.9% within our outlook range of 3% to 5%. U.S. sales were up 4% with growth in all end markets. Construction increased 4%; Industrial up 3%; Utility sales grew at a strong 6%; and CIG sales increased 2% over the prior year.
Sales in Canada were up 1% with our industrial and CIG end markets, up 7% and 6% respectively. Construction sales in Canada were up 1% on top of 12% growth in the prior year period. Utility sales were down, due to the contract nonrenewal mentioned in previous quarters. International sales were up more than 5% on an organic basis.
SG&A expenses were 2% higher than the prior year driven by the SLS acquisition. Operating profit was $93.7 million or 4.4% of sales within our outlook range for the quarter. The effective tax rate for the quarter was 19.8% lower than our expected rate of 22% and 260 basis points higher than the prior year.
Our effective tax rate is typically impacted by the tax effect of intercompany financing foreign tax rate differences nondeductible expenses and state income taxes. The effective tax rate was lower than our outlook for the quarter, primarily due to the full application of the international provisions of U.S. tax reform, partially offset by the discrete effect of accruing taxes attributable to undistributed earnings from operations in China that are expected to be remitted in the foreseeable future. Interest costs were lower than the prior year due to the noncash benefit of settling a Canadian transfer pricing issue.
Moving to Slide 5. As John mentioned, gross margin was 18.6% in the quarter, down 60 basis points versus the prior year and 40 basis points lower than the June quarter. I'd like to provide some more detail on what drove this result. Relative to prior year, gross margin this quarter was impacted by two primary factors, mix and price cost headwinds. On the right side of this slide, you may recall from our Investor Day that we provided an overview of historical differences in gross margin rate by sales type.
The growth we experienced in construction and utility, which are below the line average for WESCO, created a mix drag to gross margins. The same was true on a geographic basis as sales in our high gross-margin Canadian business grew less than in the U.S. and our international markets.
Lastly, our direct ship sales grew at a higher rate than our stock sales and direct ship sales have lower gross margins and operating costs than stock shipments. Regarding supplier price increases, we are aggressively working to pass through increases to our customers. Year-to-date the number of supplier price increases continued to exceed those seen in 2018 with tariff cited as a significant driver for approximately half of all increases.
The magnitude of supplier price increases also continues to exceed that seen in 2018 and averaged high single digits in the quarter and year-to-date. We are experiencing the typical time lag of working the increases through the value chain to customers. We expect to see positive effects of our efforts in the coming quarters.

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谢谢约翰,大家早上好。我将从第4页开始进行概述。在我们的3%至5%的展望范围内,该季度的报告销售额增长了3.9%。随着所有终端市场的增长,美国的销售额增长了4%。建筑面积增长4%;工业增长3%;公用事业销售额增长了6%。 CIG销售额比上年增长2%。

工业和CIG终端市场在加拿大的销售额增长了1%,分别增长了7%和6%。加拿大的建筑销售额比去年同期的12%增长了1%。公用事业销售额下降,这是由于前几个季度未续签合同所致。国际销售额自然增长超过5%。

在收购SLS的推动下,SG&A支出比上年增长2%。在本季度展望范围内,营业利润为9370万美元,占销售额的4.4%。该季度的有效税率比我们预期的22%低19.8%,比去年同期高260个基点。

我们的有效税率通常受公司间融资的外国税率差异不可抵扣费用和州所得税的税收影响。有效税率低于我们对该季度的预期,这主要是由于美国税制改革的国际规定得到全面应用,部分被预期来自中国的未分配收益所产生的应计税款的离散影响所抵消。在可预见的将来汇出。由于解决了加拿大转让定价问题的非现金收益,利息成本比上年降低。

转到幻灯片5。正如John所提到的,该季度的毛利率为18.6%,与去年同期相比下降了60个基点,比6月季度下降了40个基点。我想提供更多驱动此结果的细节。与上年相比,本季度的毛利率受到两个主要因素的影响,即混合和价格成本逆风。在这张幻灯片的右侧,您可能会从“投资者日”回忆起,我们概述了按销售类型划分的毛利率的历史差异。

我们在建筑和公用事业方面的增长低于WESCO的平均水平,这对毛利率造成了一定的拖累。在地理上也是如此,因为我们高毛利率的加拿大业务的销售额增长低于美国和我们的国际市场。

最后,我们的直接船销售增长速度高于股票销售,直接船销售的毛利率和运营成本低于股票运输。关于供应商提价,我们正在积极努力将提价转嫁给我们的客户。年初至今,供应商提价的数量继续超过2018年的价格涨幅,其中关税被视为推动价格上涨的重要因素。

供应商价格上涨的幅度也继续超过2018年的幅度,本季度和年初至今均达到平均高个位数。我们正在经历通过价值链为客户提供增值服务的典型时滞。我们希望在接下来的几个季度中看到我们努力的积极影响。

Moving to the diluted EPS walk on Page 6. We reported diluted earnings per share of $1.52, up 8% from the prior year. This reflected a combined $0.21 benefit from foreign exchange rates, a lower tax impact net of interest, and a lower share count following our repurchase activity in 2018 and 2019, partially offset by a combined $0.10 decline, due to core operations and the SLS acquisition.
We've also provided you the reconciliation of our organic and reported sales growth. Foreign exchange was a drag to reported sales, but more than offset by the benefit of the SLS acquisition.
Moving to our end market results beginning on Page 7. Industrial sales were up 5% overall and up 3% and 7% in the U.S. and Canada respectively, reflecting a stronger result in the first half. Industrial sales were up 1% sequentially from the second quarter. Among our global account market verticals, petrochemical metals and mining and food processing were all up double digits from the prior year period, while OEM was down versus the prior year. Year-to-date Industrial sales were up 2%, and we continue to expect growth in this market.
Although moderating the macroeconomic indicators still support solid production levels and capacity utilization rates in the U.S. and Canada. RFP quotations and bidding levels remained very strong with third quarter and year-to-date activity up mid-single digits versus prior periods.
During the quarter, we were awarded a new three-year contract to provide electrical MRO and OEM products to support the U.S. and Canadian operations of a high-voltage equipment manufacturer.
Turning to Page 8. Sales in the construction end market were up 3% in the quarter, reflecting sales that were up 4% in the U.S. and up 1% in Canada in local currency. Sales were up 2% sequentially from the second quarter in line with typical seasonality. Project activity levels remain active however we have seen some project delays with industrial contractors due to skilled labor constraints and overall uncertainty, partially caused by tariff-driven price increases.
The skilled labor shortages that our customers are facing represent opportunities for WESCO project management and construction services that help our customers meet these challenges by reducing supply chain complexity and increasing job site productivity. Backlog in constant currency was down versus prior year and flat on a sequential basis reflecting normal seasonality.
We ended the quarter with the second-highest Q3 backlog in our history. We're pleased to note that margin in our backlog was higher on both the sequential and year-over-year basis. As an example of our recent success, this quarter we were awarded a multimillion-dollar contract to provide switchgear for the construction of a new hospital in Canada.
Moving to Page 9. Our Utility sales continues to be strong. Sales were up 3% for the quarter after delivering 11% growth in the prior year. This result was despite a 28% decrease in our Canadian business, due to the nonrenewal of a contract that was at an unacceptable margin that we have discussed in prior quarters. This is the last quarter for which there will be a negative comparison in our Canadian Utility sales from the absence of this contract.

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转到第6页的摊薄后每股收益。我们报告的摊薄后每股收益为1.52美元,比去年同期增长8%。这反映出汇率带来的合并收益0.21美元,扣除利息后的税项影响减少以及我们在2018年和2019年进行回购活动后的股份数量减少,部分抵消了由于核心业务和SLS收购而导致的合并总收益0.10美元的下降。

我们还为您提供了自然和报告销售增长的对帐。外汇交易对报告的销售造成了拖累,但被SLS收购的好处所抵消。

从第7页开始,我们转向最终市场结果。工业销售总体增长了5%,美国和加拿大的工业销售分别增长了3%和7%,反映出上半年的增长。工业销售较第二季度环比增长1%。在我们的全球账户市场垂直行业中,石化金属以及采矿和食品加工均比上年同期增长两位数,而OEM则比上年同期下降。年初至今,工业销售额增长了2%,我们继续预计该市场的增长。

尽管降低了宏观经济指标,但仍支持美国和加拿大的稳定生产水平和产能利用率。 RFP报价和投标水平保持非常强劲,第三季度和年初至今的活动比上一期间上升了个位数。

在本季度中,我们获得了一份为期三年的新合同,提供电气MRO和OEM产品,以支持一家高压设备制造商在美国和加拿大的运营。

转到第8页。该季度建筑终端市场的销售额增长了3%,反映出以当地货币计算,美国的销售额增长了4%,加拿大的销售额增长了1%。与典型的季节性相比,第二季度的销售额环比增长了2%。项目活动水平保持活跃,但是由于熟练的劳动力限制和总体不确定性,部分原因是关税驱动的价格上涨,因此我们发现与工业承包商的某些项目延迟。

客户面临的熟练劳动力短缺是WESCO项目管理和建筑服务的机遇,可通过降低供应链复杂性和提高工作现场生产率来帮助客户应对这些挑战。按固定汇率计算的积压订单量与去年同期相比有所下降,并且环比持平,反映了正常的季节性。

我们以历史上第二高的第三季度积压结束了本季度。我们很高兴地注意到,积压的毛利在环比和同比上都更高。作为我们最近成功的一个例子,本季度我们获得了数百万美元的合同,为加拿大新医院的建设提供开关设备。

移至第9页。我们的公用事业销量持续强劲。该季度的销售额增长了3%,而上年同期增长了11%。尽管我们的加拿大业务下降了28%,但由于未续签的合同的利润率达到了我们之前几个季度所讨论的不可接受的水平,因此取得了这一结果。这是最后一个季度,由于缺少该合同,我们在加拿大的公用事业销售将出现负比较。

U.S. sales increased 6% and improved 4%, sequentially. WESCO is benefiting from secular trends in the utility sector, including construction market growth increased industrial output, grid hardening and reliability projects, and higher demand for renewable energy. In addition to these trends, we continue to expand our scope of services with investor-owned utility, public power, and utility contractor customers.
Our Utility business has posted seven years of growth and we expect this to continue going forward. Bidding activity levels are high and we have a robust opportunity pipeline. This quarter we were awarded a multiyear contract to provide broadband cable and fiber equipment to support a fiber-to-the-x project for a municipal utility in the U.S. We also began servicing a new utility alliance customer in October, which we had highlighted on the first quarter call.
Finally turning to Commercial Institutional and Government or CIG on Page 10. Sales were up 1% with the U.S. up 2% and Canada up 6% in local currency. International was down double digits reflecting strong project activity in the prior year. Sequentially, sales were down 3%. Sales at datacom and security customers were up double digits.
On a two-year stack basis, CIG sales were up 9% in the quarter. This performance was again driven by our strong capabilities in value-added services and LED lighting renovation and retrofit applications as well as fiber-to-the-x deployments broadband build-outs in Canada and network and security solutions.
As an example of the continued strength we are seeing in CIG, this quarter we were awarded a multimillion-dollar contract to provide data communications products for the construction of a U.S. federal government facility.
Turning to Page 11. The company generated free cash flow of $117 million in the quarter or 181% of net income. Year to date WESCO has generated $86 million or 51% of net income. We continue to expect to generate free cash flow of approximately 90% of net income for the full year.
Debt leverage net of cash was 3x trailing 12-month EBITDA, down from the prior quarter driven by lower debt and a higher cash balance. Leverage is within our target range of 2x to 3.5x trailing 12-month EBITDA. The new lease accounting standard did not have a material impact on the income statement or the statement of cash flows. We maintained strong liquidity defined as available cash, plus committed borrowing capacity of $723 million at the end of the quarter.
Our weighted average borrowing rate was 4.4% for the quarter. Our fixed rate debt is approximately 62% of total debt consistent with historical averages. As referenced on Slide 3 of the presentation, during the quarter, we extended the maturity dates for our two credit facilities and increased overall borrowing capacity by $50 million.
Capital expenditures were $9 million in the quarter, reflecting investment to digitize our business, including information technology tools and digital applications. We completed the previously mentioned accelerated share repurchase transaction that we entered into in May for $150 million and received an incremental 700,000 shares in the quarter.

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美国的销售额环比增长6%,增长4%。 WESCO受益于公用事业领域的长期趋势,包括建筑市场增长,工业产出增加,电网硬化和可靠性项目以及对可再生能源的更高需求。除了这些趋势外,我们还将继续扩大与投资者拥有的公用事业,公共权力和公用事业承包商客户的服务范围。

我们的公用事业业务实现了七年的增长,我们希望这一趋势将继续下去。竞标活动水平很高,我们拥有强大的机会渠道。本季度,我们获得了一份多年合同,为美国的一家市政公用事业公司提供宽带电缆和光纤设备,以支持“光纤到x”项目。我们还从10月开始为新的公用事业联盟客户提供服务,我们在此着重介绍了第一季度电话。

最后转到第10页的商业机构和政府或CIG。销售收入增长1%,其中以当地货币计算的美国增长2%,加拿大增长6%。国际业务下降两位数,反映了上一年的项目活动强劲。销售额环比下降了3%。数据通信和安全客户的销售额增长了两位数。

以两年为基础,本季度CIG销售额增长了9%。我们在增值服务,LED照明翻新和翻新应用以及在加拿大的光纤到宽带部署以及网络和安全解决方案方面的强大能力再次推动了这一业绩。

作为我们在CIG上看到的持续实力的一个例子,本季度我们获得了数百万美元的合同,为美国联邦政府设施的建设提供数据通信产品。

转到第11页。该公司在本季度产生了1.17亿美元的自由现金流,占净收入的181%。迄今为止,WESCO已产生8600万美元,占净收入的51%。我们继续预计全年将产生约90%的净现金自由现金流。

受债务减少和现金余额增加的推动,扣除现金的债务杠杆为过去12个月EBITDA的3倍,较上一季度有所下降。杠杆率在过去12个月EBITDA的2倍至3.5倍的目标范围内。新的租赁会计准则对损益表或现金流量表没有重大影响。我们维持强大的流动性(定义为可用现金),加上本季度末的承诺借贷能力为7.23亿美元。

本季度我们的加权平均借款利率为4.4%。我们的固定利率债务约为总债务的62%,与历史平均水平一致。如演示文稿的幻灯片3所述,在本季度中,我们延长了两个信贷额度的到期日,并将总借款能力增加了5,000万美元。

本季度的资本支出为900万美元,反映了为数字化我们的业务(包括信息技术工具和数字应用程序)而进行的投资。我们完成了之前提到的加速股票回购交易,该交易于5月以1.5亿美元达成,并在本季度获得了70万股的增量。

We have now completed $275 million of the $400 million share buyback authorization that will expire at the end of 2020. WESCO has a history of generating strong free cash flow throughout the entire business cycle and we expect this to continue. Our capital allocation priorities remain consistent.
The first priority is to invest in organic growth initiatives and accretive acquisitions, including large core electrical distributors that consolidate the market or transactions that provide a new strategic capability. Second, we seek to maintain a targeted financial leverage ratio of between 2x and 3.5x EBITDA. Third, we return cash to shareholders through share repurchase under our three-year $400 million share buyback authorization.
Now, let's turn to our outlook for the remainder of 2019 on Slide 12. For the full-year, we are lowering the midpoint of our outlook to reflect our results in the first nine months of the year, as well as economic data that now points to slower growth. We expect our Industrial Construction and CIG end markets to be up low single digits for the full-year and our Utility end market to be up low to mid-single-digits.
We expect the U.S. to be up low single-digits and sales in Canada to be up low to mid-single-digits for the year. On a consolidated basis, our outlook is for sales growth of 1% to 3%, operating margin of approximately 4.2%, an effective tax rate of approximately 21%, and diluted EPS of $5 to $5.40.
At the midpoint, this outlook would represent the highest earning per share in WESCO history. We still expect to generate free cash flow of approximately 90% of net income as the increase in accounts receivable that impacted the first half will continue to be converted to cash in the fourth quarter. This full year guidance implies sales growth of approximately 3.5% at the midpoint, operating margin of approximately 4.2%, and effective tax rate of approximately 21% for the fourth quarter.
Moving to Slide 13, we are providing our first end market outlook for 2020 today. We expect our end markets to provide profitable growth opportunities for WESCO in 2020, while macroeconomic uncertainties could affect the industrial and construction end markets.
Overall, we expect that the current soft demand environment will continue next year similar to the second half of 2019 with the Utility and CIG end markets offering relatively stronger growth potential, driven by long-term electrification and digitization secular trends. Our 2020 plan includes outperforming the end markets by leveraging our full range of WESCO's services and solutions, investing in our people and digital capabilities, and maintaining our cost and cash management discipline.
As a result, we expect sales growth in the range of flat to plus 4% for next year and we'll provide the balance of our 2020 outlook during the fourth quarter earnings call in January. As the economy slows and the end markets become more challenging the strong free cash flow generation capability of our business will support execution of our strategy and capital allocation priorities.

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现在,我们已经完成了价值2亿美元的股票回购授权中的2.75亿美元,该授权将在2020年底到期。WESCO拥有在整个业务周期中产生强劲自由现金流的历史,并且我们希望这种情况会持续下去。我们的资本分配优先事项保持一致。

首要任务是投资于有机增长计划和增值收购,包括巩固市场的大型核心电力分销商或提供新战略能力的交易。其次,我们力求将目标财务杠杆比率保持在EBITDA的2倍至3.5倍之间。第三,根据为期三年的4亿美元股票回购授权,我们通过股票回购将现金返还给股东。

现在,让我们在幻灯片12上查看我们对2019年剩余时间的展望。对于全年,我们降低了展望中点,以反映我们在今年前9个月的业绩以及现在的经济数据。指出增长放缓。我们预计全年工业建筑和CIG终端市场将保持低个位数,而公用事业终端市场将保持低至中个位数的增长。

我们预计美国全年的销售量将达到个位数的低位,加拿大的销售量将达到个位数的中低位。综合来看,我们的销售额预期将增长1%至3%,营业利润率约为4.2%,有效税率约为21%,摊薄后每股收益为5美元至5.40美元。

从中点来看,这一前景将代表西交所历史上最高的每股收益。我们仍然预计将产生约90%的净现金自由现金流,因为影响上半年的应收账款增加将在第四季度继续转换为现金。全年的指导方针意味着第四季度的销售额增长约3.5%,营业利润率约为4.2%,有效税率约为21%。

移至幻灯片13,我们今天提供我们对2020年的第一个最终市场前景。我们预计终端市场将为WESCO在2020年提供有利的增长机会,而宏观经济的不确定性可能会影响工业和建筑终端市场。

总体而言,我们预计明年的软需求环境将延续到2019年下半年,公用事业和CIG终端市场在长期电气化和数字化长期趋势的推动下将具有相对较强的增长潜力。我们的2020年计划包括通过利用我们完整的WESCO的服务和解决方案,在我们的人员和数字能力上进行投资以及维持我们的成本和现金管理纪律来超越终端市场。

因此,我们预计明年的销售增长将在4%至4%的范围内。我们将在1月份的第四季度财报电话会议中提供2020年展望的余额。随着经济放缓和终端市场变得更具挑战性,我们业务强大的自由现金流产生能力将支持我们执行战略和资本配置优先事项。

Customers are seeking continuous improvement and supply chain stability in an increasingly complex and rapidly changing world. Our talented team of associates and our robust portfolio of products and value-added services continue to differentiate WESCO in providing our customers with complete solutions for the MRO OEM and capital project needs.
With that, let me turn the call back to John.

Customers are seeking continuous improvement and supply chain stability in an increasingly complex and rapidly changing world. Our talented team of associates and our robust portfolio of products and value-added services continue to differentiate WESCO in providing our customers with complete solutions for the MRO OEM and capital project needs.

With that, let me turn the call back to John.

John Engel

John Engel

Thanks, Dave. Before we open the call to questions, I wanted to comment on the press release that we issued earlier this month promoting Nelson Squires to our Senior VP and COO. As you know, Nelson has had responsibility for our Canadian operations since 2015 and was given additional responsibility for our Integrated Supply and International operations in early 2018.
Nelson has proven to be a highly capable and effective business leader who has delivered results since joining WESCO four years ago. All of our business leaders now report directly to Nelson and the overall U.S. business leader position has been eliminated. These organization changes further streamline our operations and will help WESCO grow as a leaner more agile company.
With that, we'll now open it up for questions.

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谢谢,戴夫。 在我们开始提问之前,我想评论一下本月初发布的将Nelson Squires提升为高级副总裁兼首席运营官的新闻稿。 如您所知,纳尔逊自2015年以来一直负责我们的加拿大业务,并于2018年初被赋予了我们的综合供应和国际业务的额外责任。

自四年前加入WESCO以来,尼尔森已被证明是一位高效干练的业务领导者,取得了丰硕的成果。 现在,我们所有的商业领袖都直接向尼尔森汇报工作,而美国商业领袖的整体地位也被取消。 这些组织变革进一步简化了我们的运营,将帮助WESCO成长为一个更精简,更敏捷的公司。

这样,我们现在就开放它提出问题。

问答环节

[Operator Instructions] The first question comes from David Manthey with Baird. Please go ahead.

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[操作员说明]第一个问题来自戴曼德(David Manthey)和贝尔(Baird)。 请继续。

David Manthey

Thank you. Good morning, guys

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谢谢。 早上好家伙

John Engel

John Engel

Good morning, Dave.

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早上好,戴夫。

David Manthey

Since the Analyst Day, you've been talking about transformational M&A and I'm just wondering if you could help us in your thinking of how you define transformational? Are you thinking about just a large deal? Or is it something outside your core business? What do you consider transformational? And for something big and meaningful would you consider using WESCO stock or not?

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自分析师日以来,您一直在谈论变革性的并购,我想知道您是否可以帮助我们思考如何定义变革性的并购? 您是否正在考虑很多? 还是在您的核心业务之外? 您认为变革性的是什么? 对于大而有意义的事情,您是否考虑使用WESCO股票?

John Engel

John Engel

Yes. So, as you recall at our Investor Day, we did outline our priorities relative to our overall acquisition strategy as part of our overall strategy. And they were first to consolidate large core electrical distributors. Second, to expand into adjacent product and service category. And third, you'll recall that we said we wanted to invest in digital technologies that advance the enterprise strategy. So, they are core elements of our acquisition strategy. And transformational acquisition means it basically fits within those three priorities.
It could be a large acquisition to provide that potential because of the synergies that we will be able to extract and then thoughtfully reinvest a portion of, and also investing in digital technology that advance our enterprise strategy in helping lead the digital transformation for our type of company into B2B distribution value chain. Relative to financing Dave, I think that we've always run with leverage. We have excellent free cash flow generation.
In fact, if you go back and look at what our cash generation has been since we went public 20 years ago, it's been very strong cash generation through all phases of the economic cycle. Our free cash flow yield is very high. So, we're comfortable running with financial leverage very strong free cash generation, very strong balance sheet, and if you're talking a very large transformational acquisition, we would use the most optimal mix of financing that would get the deal done, a combination of tapping the debt markets, as well as considering equity when appropriate.

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是。因此,正如您在“投资者日”回顾的那样,我们确实概述了与整体收购战略相关的优先事项,并将其作为整体战略的一部分。他们是第一家合并大型核心电气分销商的公司。第二,扩展到相邻的产品和服务类别。第三,您会记得我们说过我们想投资于数字技术,以推进企业战略。因此,它们是我们收购战略的核心要素。转型性收购意味着它基本上符合这三个优先事项。

提供这种潜能可能是一项大型收购,因为我们将能够产生协同作用,然后再进行有思想的再投资,并投资于数字技术,以推进我们的企业战略,从而帮助引领我们的此类数字化转型公司进入B2B分销价值链。相对于为Dave融资,我认为我们一直都在利用杠杆。我们拥有出色的自由现金流产生能力。

实际上,如果您回顾一下20年前上市以来的现金产生情况,那么在整个经济周期的各个阶段,现金产生都非常强劲。我们的自由现金流收益率很高。因此,我们很乐意使用非常强大的自由现金产生能力,非常强大的资产负债表来经营财务杠杆,并且如果您要进行的是大规模的转型收购,我们将使用最佳的融资组合来完成交易,充分利用债务市场,以及在适当时考虑股权。

David Manthey

Makes sense. Okay. And then maybe one for Dave. Gross margin has been flat to higher year-over-year for the past five quarters and we took a little step back here. Could you give us a bit of a walk from the 19.2% last year to the 18.6% this quarter? And then what changes between here and the fourth quarter to get you back on track?

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说得通。 好的。 然后也许是戴夫。 过去五个季度的毛利率与去年同期持平,而我们在这里又退了一步。 您能否让我们从去年的19.2%升至本季度的18.6%? 然后在这里和第四季度之间发生什么变化才能使您重回正轨?

Dave Schulz

Dave Schulz

Certainly. So, as we've highlighted there are two primary factors. And we have talked about this in some of the previous quarters as well, but the first was mix. And as we highlighted during the Investor Day, we saw mix as a headwind across all three of the vectors of our gross margin composition. So, our end market mix was primarily driven by the growth in the Utility business and also with Construction.
Additionally, within our Industrial end market the mix of the growth by end market created a mix headwind. And so that's something that we haven't talked about quite a bit publicly, but for example, we highlighted that our OEM business was down versus the prior year. That has a higher gross margin than the balance of the Industrial end market. So that created a headwind even within our Industrial end market. And then clearly the geographic mix was also a key driver.
It's relatively straightforward. We've highlighted that our Canadian business has a significantly higher gross margin than the balance of the company and organic sales were only up 1% in the quarter versus the U.S. and International being up in the low single-digit range.
So, finally, we also had that higher percentage of sales that were direct ship. So, these are direct ship sales they don't touch our inventory and we have a lower gross margin on these sales, compared to stock sales, which resulted in the margin headwind. And then on price cost. Again, we've seen this cumulative effect significant number of price increases and we're averaging low – or mid-single-digit price increases with our suppliers and we just are continuing to see that lag between being able to pass through those price increases and get the margin rate recovery with our customers.
So, that's clearly been providing a drag versus the prior year. Going forward, as we highlighted, we are continuing to work through driving through and getting gross margin rate with our customers. And as we look at it going forward, we've got a series of initiatives in place that we anticipate will drive that expansion of our gross margin rate.

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当然。因此,正如我们强调的那样,有两个主要因素。我们在前几个季度也都谈到了这一点,但第一个是混合情况。正如我们在“投资者日”期间所强调的那样,我们认为混合是跨越毛利率构成的所有三个向量的不利因素。因此,我们的最终市场结构主要是由公用事业业务以及建筑业务的增长所驱动。

此外,在我们的工业终端市场中,终端市场的增长混合造成了不利的混合。因此,我们还没有公开谈论过这一点,但是例如,我们强调指出,我们的OEM业务比上一年有所下降。毛利率高于工业终端市场的余额。因此,即使在我们的工业终端市场中,也构成了不利因素。然后显然地域上的混合也是一个主要驱动力。

这是相对简单的。我们强调指出,我们的加拿大业务的毛利率比公司的余额高得多,本季度的自然销售仅增长了1%,而美国和国际业务的增长都保持在较低的个位数范围内。

因此,最后,我们还拥有直接出货的更高百分比的销售。因此,这些是直接的船舶销售,它们不影响我们的库存,与库存销售相比,这些销售的毛利率较低,这导致了利润率的阻力。再论价格成本。再一次,我们已经看到这种累积效应会导致价格大幅上涨,我们平均与供应商进行低至中位数个数的价格上涨,而我们继续看到能够承受这些价格上涨之间的滞后并与我们的客户获得保证金率回收。

因此,与上一年相比,这显然是一个阻力。就像我们强调的那样,展望未来,我们将继续努力与客户保持良好的关系,并获得客户的毛利率。展望未来,我们已经采取了一系列举措,预计将推动毛利率的增长。

David Manthey

Very good. Thank you.

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很好。 谢谢。

会议主持员

The next question comes from Deane Dray with RBC Capital Markets. Please go ahead.

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下一个问题来自RBC Capital Markets的Deane Dray。 请继续。

Deane Dray

Thanks. Good morning, everyone. Wanted to add my congrats to Nelson. He's a great addition to the C suite. Love that. And then also that gross margin slide mix that's really helpful and that was very informative. So, I appreciate that color.

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谢谢。 大家,早安。 想对纳尔逊表示祝贺。 他是C套件的重要补充。 爱那个 然后,这种毛利下滑组合确实很有帮助,而且非常有用。 所以,我很欣赏这种颜色。

John Engel

John Engel

Thanks a lot Deane. Appreciate the real-time feedback on that.

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非常感谢Deane。 赞赏对此的实时反馈。

Deane Dray

Alright. So, what surprised me most first is that, we're all seeing across the industrial sectors signs of short cycle industrial weakness. And if I look at your results in the Industrial side and on the construction side it doesn't come through this quarter. I mean you just – you just seem to be breezing through it up 5% organic and Industrial and up 3% in Construction. So, when you talk about slowing in the fourth quarter it sounds like you're pointing to the economic data suggesting there is slowing, but are you actually seeing it in your day-to-day business maybe in some of your MRO business? So, maybe we'll start there.

好的。 因此,最让我惊讶的是,我们都看到整个工业部门都出现了短周期工业疲软的迹象。 如果我在工业方面和建筑方面看一下您的结果,那么本季度将无法实现。 我的意思是您–您似乎在通过5%的有机和工业产品以及在建筑中增加3%的产品而感到不寒而栗。 因此,当您谈到第四季度的经济放缓时,听起来好像您指向的经济数据表明那里的经济放缓了,但您是否真的在日常业务中看到它,也许在某些MRO业务中看到了? 所以,也许我们将从这里开始。

John Engel

John Engel

So, your question is – you're right. When we say we're seeing increased headwinds and challenges that is the end markets. So, that is more around commentary from customers. There is a continued uncertainty with the economic outlook. And so, again, all those comments around more challenging economic and end market environment it is the end markets. I have to say, I'm actually very pleased with what we've done in terms of driving the top line results in Q3.
I know the comparables are easier year-over-year, but it's against the backdrop that's much tougher. And you cited two of the end markets Industrial and Construction. Remember, we grew in all of them and we grew in all geographies, but I think of particular note is Industrial because when you look at our Industrial end market as you alluded to, we had growth in Canada, U.S., and International, and the overall growth was mid-single-digits and that's with oil and gas sales being flattish in the third quarter as they were in Q2. So, overall – overall growth across the company.
So, I think that's a testament to a number of the sales-related initiatives that we have under way and we've talked about those as a part of our commercial excellence strategic at our Investor Day. In terms of construction too, I think what's really notable and this is particularly important to put this in the historical context because we've had periods of – well I've been here 15 years, we've had periods over that time where residential construction was materially stronger than non-resi end markets.
End markets, that's what we're seeing now. I would say that most of the end market indicators and what we're hearing from contractor customers again around the uncertainty is there's increased headwinds across nonresidential construction. Nonresidential construction, I mean. Residential construction's holding up. And again, I would say that, I'm pleased with our results, particularly in the U.S. stepping up to a 4% growth in Construction in the third quarter. The majority of our regions geographic regions grew in the U.S. and in Canada as well.
The regions that we experienced some increased pressure was the Western provinces, which I think we've all seen what the commentary is in the paper, particularly out in Alberta and the other portions of the western provinces. Coming back to Industrial one other comment as well at a regional level in both U.S. and Canada we had a majority of those regions also grow organically in sales. So, I – gee I'm actually very pleased with how we’ve picked up our sales execution, positive sales momentum. And as I say, there's a few others that have reported results thus far and those I would call them investor peers some competitors, as well as suppliers.
I think when you put it in that context the fact that we grew in end markets all geographies and the numbers that we posted it's something we feel pretty good about. We want to obviously build on that momentum. And the backlog held up consistent with normal seasonality. And as Dave mentioned, the margin rate in the backlog is higher. So, that does give us a – and that's unique to us, right? So, I think that gives us some confidence as we start moving through Q4.

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因此,您的问题是–您是对的。当我们说最终市场时,我们会遇到越来越多的阻力和挑战。因此,更多的是来自客户的评论。经济前景持续不确定。同样,所有这些评论都围绕更具挑战性的经济和最终市场环境,即最终市场。我不得不说,实际上,我对我们为推动第三季度的顶级业绩所做的工作感到非常满意。

我知道可比公司比去年同期更容易,但是这是在更艰难的背景下进行的。您列举了工业和建筑两个最终市场。记住,我们在所有领域都在成长,并且在所有地区都在成长,但是我认为特别值得注意的是工业,因为当您提到我们所提到的工业终端市场时,我们在加拿大,美国和国际市场都有增长。总体增长为中个位数,这与第三季度的石油和天然气销售持平。因此,整个公司的整体增长。

因此,我认为这证明了我们正在进行的许多与销售相关的举措,我们在“投资者日”将这些举措作为我们卓越商业战略的一部分进行了讨论。同样在建筑方面,我认为真正值得注意的是这一点,将其放在历史背景中尤为重要,因为我们已经经历了很长时间–到我这里已经有15年了,在那段时间里我们经历了一段时期建设在本质上比非住宅终端市场要强大。

终端市场,这就是我们现在所看到的。我要说的是,大多数终端市场指标以及我们围绕不确定性再次从承包商客户那里得到的信息是,非住宅建筑的阻力越来越大。我的意思是非住宅建筑。住宅建筑的停滞。再说一遍,我对我们的业绩感到满意,特别是在美国,第三季度建筑业增长了4%。我们大多数地区的地理区域在美国和加拿大都有增长。

我们承受更大压力的地区是西部省份,我认为我们都已经看到了本文的评论,尤其是在艾伯塔省和西部省份的其他地区。在美国和加拿大,在地区层面上也要再次发表对工业的评论,我们认为这些地区中的大多数也都在有机增长。所以,我-高兴,我对我们如何提高销售业绩,积极的销售势头感到非常满意。正如我所说,到目前为止,还有其他一些公司报告了结果,我将它们称为投资者同行,一些竞争对手以及供应商。

我认为,在这种情况下,我们在所有市场的最终市场中都有增长,而发布的数字也使我们感到非常满意。我们显然希望在这种势头上进一步发展。积压量与正常季节保持一致。正如Dave所提到的,积压的保证金率更高。因此,这确实给了我们–这对我们来说是独一无二的,对吧?因此,我认为这使我们在进入第四季度时充满信心。

Deane Dray

Got it. That's very helpful. And then if we look at your 2020 comments and we're actually pleasantly surprised that you wanted to take a stab at this because a bunch of the companies are holding off on giving their sneak peeks and here you are giving a pretty detailed bottom up. And when I looked at flat to 4% total it just struck me as a bit optimistic, but then I look at the underlying assumptions about your outgrowth that seems in line. So, maybe the Industrial and Construction low-end of the ranges of low single-digit how did you arrive at those? Is this again you're extrapolating what you're seeing on the economic data in some of the – around the end markets? But what's the sensitivity there from a bottom up on the low end of those ranges? And could they actually be lower?

得到它了。 那很有帮助。 然后,如果我们查看您对2020年的评论,实际上让您感到惊讶的是,您想对此采取行动,因为许多公司都在坚持不懈地进行偷窥,而您在这里给出了一个非常详细的自下而上的信息。 当我看到总量持平于4%时,这让我感到有些乐观,但随后我看了关于您的增长的基本假设,这似乎是一致的。 那么,也许工业和建筑业的低个位数低端范围是如何得出的? 这是否又是在推断某些最终市场的经济数据所得出的结论? 但是,从下到上在那些范围的低端有什么敏感性? 而且它们实际上会更低吗?

John Engel

John Engel

Yes. So, the answer to your question is, yes. In terms of the end market ranges that's – and our view of the end market is a combination of all the different indicators that we look at some of which are in the public domain a number of which are not. So, let me come back to our momentum because I think that's the really important point. And I – let me start with, I said backlog is very healthy as we move Q3 to Q4 that's number one.
Number two, the pipeline and we manage a phase gated pipeline of opportunities. Our pipeline has actually increased substantially. This is our opportunity pipeline has increased substantially over the last several quarters as we've move through 2019. To be fair part of that is a direct outcome of some of the additional digital tools and analytics that we've built for the front-end sales and marketing teams as part of our commercial excellence strategic plan, but our pipeline that we're managing again of opportunities is the largest it's ever been by a meaningful measure.
And then, what's our momentum thus far in Q4, we said on the slide that we reported, we said sales were up low single digits. With one day to go, our sales growth is between 3% to 4%. So, a little bit stronger than – when we locked down the chart, we want to be comfortable with the low single-digit which for us is 0% to 3%, but I did want to give that point that with one day to go and that's today we're running roughly a 3% to 4% sales growth.

www.

是。因此,您的问题的答案是肯定的。就最终市场范围而言,我们对最终市场的看法是所有不同指标的组合,我们认为其中一些指标属于公共领域,而有些则不在。所以,让我回到我们的势头,因为我认为这是真正重要的一点。我-首先,我说当我们将第3季度移至第4季度时,积压工作非常健康。

第二,管道,我们管理机会的阶段控制管道。实际上,我们的渠道已大大增加。这是我们在进入2019年后的最后几个季度中,我们的机会管道已大大增加。公平地说,这是我们为前端构建的一些其他数字工具和分析的直接结果。销售和营销团队是我们卓越商业战略计划的一部分,但从有意义的角度来看,我们再次管理机会的渠道是有史以来规模最大的。

然后,在我们报告的幻灯片中,我们说第四季度到目前为止的发展动力是什么,我们说销售额增长了个位数低位。待了一天,我们的销售增长在3%到4%之间。因此,它比–锁定图表时要强一点,我们希望对低的个位数感到满意,对我们而言,该位数为0%到3%,但是我确实想指出一点,那就是到今天,我们的销售额增长了大约3%至4%。

Deane Dray

That's helpful. Thank you.

www.

有帮助 谢谢。

会议主持员

The next question comes from Nigel Coe with Wolfe Research. Please go ahead

www.

下一个问题来自Wolfe Research的Nigel Coe。 请继续

Nigel Coe

Thanks. Good morning, guys.

www.

谢谢。 早上好家伙。

John Engel

John Engel

Good morning.

早上好。

Nigel Coe

I echo Deane's comments great information. Just wanted to pick up on that – the gross margin differentials there. I think we were sort of aware of the differences. Can you just remind us how does the operating margin compare? So, the SG&A structures among the different verticals and geographies, is there a big difference in operating margin as well?

www.

我赞同Deane的评论。 只是想了解一下-那里的毛利差。 我认为我们已经意识到了差异。 您能提醒我们营业利润率如何比较吗? 那么,不同行业和地区之间的SG&A结构,营业利润率也有很大差异吗?

Dave Schulz

Dave Schulz

Nigel it's Dave Schulz. So, overall at the company level, it's relatively agnostic at the operating margin line. The one thing that we did highlight is that's particularly true when you take a look at our end markets and when you take a look at our shipment type. And remember that the shipment type, the margin differential is because of our cost to serve. And so, for example something that goes direct ship doesn't touch our inventory though gross margins are lower, but the operating costs are lower as well.
Therefore, it's relatively agnostic at the shipment type level. Where we have the significant difference from an operating margin perspective is by geography. So, if you take a look at the average for WESCO, Canada is higher. So, again, we've invested heavily in Canada, primarily because we're attracted by the margin composition. The operating margin composition it does tend to be significantly higher than the balance of the business. Conversely based on the mix of our International markets, International tends to be slightly lower than the overall line average from a geographic perspective.

www.

奈杰尔是戴夫·舒尔茨(Dave Schulz)。因此,总的来说,在公司一级,它与营业利润率线无关。我们强调的一件事是,当您查看我们的最终市场以及查看我们的装运类型时,尤其如此。请记住,装运类型的利润差异是因为我们的服务成本。因此,例如,虽然毛利率较低,但直接出货的物料却不会影响我们的库存,但运营成本也较低。

因此,在装运类型级别上是相对不可知的。从营业利润率的角度来看,我们所处的显着差异在于地理位置。因此,如果您查看WESCO的平均值,则加拿大的平均值更高。因此,我们再次在加拿大进行了大量投资,主要是因为我们被保证金构成所吸引。它的营业利润率构成确实确实比业务余额高得多。相反,根据我们国际市场的混合情况,从地理角度来看,International往往略低于整体平均线。

Nigel Coe

David that was great. And then moving on to 2020, you called out Utility as a sort of tailwind to growth next year. And I'm just curious we have obviously seen very nice trends right now in T&D. What kind of visibility do you have into next year at this point? And then I know that generation isn't a big driver for WESCO, but so maybe just touch on what you're seeing in generation as well. That would be helpful.

www.

大卫,太好了。 然后进入2020年,您将Utility称为明年增长的一种顺风。 我只是很好奇,我们现在显然已经在T&D中看到了非常好的趋势。 您现在对明年有什么样的知名度? 然后我知道,世代并不是WESCO的主要推动力,但也许也只需触摸一下您在世代中看到的内容。 那会有所帮助。

John Engel

John Engel

Yes. So, our Utility business we've got an interesting portal in the utility industry in terms of we serve the investor on utilities and that grew in the third quarter. We serve public power municipals and co-ops and that grew in the third quarter. And then we also serve specialty utility contractors. I would say it's those contractors that are uniquely geared from a business mix and capability standpoint to serve utility and that grew in the third quarter.
So, this was a – we feel really good about foundationally the strength of the growth in the third quarter and the U.S. growing at 6% was a really good number we think. Canada again is that contract that we walked away from. We'll have a little bit of sales that we still have in Q4 of 2018 last year, but it's much smaller than the rate of sales we had in Q1, 2, 3. And then when we move through Q4 into 2020 we expect again strong results in Utility across our Canadian business. So, I just wanted to set the stage with that a bit. And it's through those relationships that we have insight into the capital spending plans.
And what's driving our growth isn't just – I wouldn't call it fundamentally [indiscernible]. We've been consistently outperforming the market. And now – well and when we finish this year, we'll have eight years of sales growth in a row in utility organically that's despite exiting these large contracts that we walked away from. So, we're getting the sales growth from increasing our scope of supply with current customers, expanding our product categories, there's additional spend on grid hardening project win, sales growth, etcetera. But as you think about the drivers going forward, it's grid automation renewables storm hardening initiatives, as well as continued growth in resi.
This contributing growth in resi add meters to the ground, which is a direct – a first derivative growth driver for utility. And then non-resi typically follows. So, and finally I would say that the contractor business remains strong because structurally utilities continue to outsource their capital project work. So, when you integrate all these, I'll call them dynamics, we just see with our value proposition the end market with the ability to outperform the end market with our capabilities we've got great confidence in that. And we've got a long and strong track record.

是。因此,就公用事业行业而言,就我们为公用事业的投资者提供服务而言,我们在公用事业行业中拥有一个有趣的门户网站,该门户网站在第三季度有所增长。我们为公共权力市政和合作社提供服务,并且在第三季度有所增长。然后,我们还为专业公用事业承包商提供服务。我要说的是,这些承包商从业务组合和能力的角度出发,专门为公用事业服务,并且在第三季度有所增长。

因此,这是–我们对第三季度的增长强度感到非常满意,而美国的6%增长率是我们认为非常不错的数字。加拿大再次是我们放弃的那个合同。去年我们将在2018年第四季度获得一些销售收入,但远低于第一,第二,第三季度的销售速度。然后,当我们进入第四季度进入2020年时,我们会再次期待我们在加拿大的业务在效用方面取得了出色的成绩。所以,我只是想为此做些准备。通过这些关系,我们可以洞悉资本支出计划。

推动我们增长的不仅是–我不会从根本上将其称为[音频不清晰]。我们一直在跑赢市场。现在-好,当我们今年完成时,尽管退出了我们放弃的这些大合同,我们在公用事业中将连续八年实现销售增长。因此,通过增加与现有客户的供应范围,扩展产品类别,在电网加固项目获胜,销售增长等方面有额外支出,我们获得了销售增长。但是,考虑到未来的驱动因素时,它是网格自动化可再生能源风暴强化计划以及resi的持续增长。

RESI的这种快速增长为地面增加了电表,这是直接的-公用事业的第一个衍生增长动因。然后通常是非resi。因此,最后我要说的是,承包商的业务仍然强劲,因为结构上的公用事业公司继续将其资本项目工作外包。因此,当您将所有这些集成在一起时,我将其称为动态,我们只是看到我们的价值主张能够以我们的能力超越终端市场,而我们的能力使我们对此充满了信心。而且,我们拥有长期的良好记录。

Nigel Coe

Okay, John, thanks. I’ll leave it there.

好的,约翰,谢谢。 我会把它留在那里。

会议主持员

The next question comes from Steve Tusa with JPMorgan. Please go ahead.

下一个问题来自摩根大通的史蒂夫·图萨(Steve Tusa)。 请继续。

Steve Tusa

史蒂夫·图萨

Hi, guys, good morning. Can you just talk about what you're seeing in the machine builder vertical? There's – it's kind of a small vertical in the grand scheme of things, but there has just been a little more chatter around weakness there given cross-border concerns?

嗨,大家好 您能谈谈您在机器制造商垂直行业中看到的内容吗? 在总体规划中,这是一个很小的垂直领域,但是考虑到跨国界的担忧,围绕弱点的讨论只是多了一点?

John Engel

John Engel

Yes, yes. It's a really good question. Yes, we're seeing challenges. So, we've got – part of we'll call them OEM-type customers that Dave alluded to in his earlier comments that would include that. And then, we have some specialized businesses around industrial automation and control and we're seeing some headwinds with customers that we would categorize as the machine builder. It's a very good...

是的是的。 这是一个非常好的问题。 是的,我们正在面临挑战。 因此,我们得到了–我们的一部分将称为Dave类型的客户,Dave在他的较早评论中就提到了这一点。 然后,我们在工业自动化和控制领域有一些专门的业务,我们看到与客户的不利关系,我们将其归类为机器制造商。 很好

Steve Tusa

史蒂夫·图萨

How much – how – what is the – is it down like mid-singles? Or what would you say...

多少像中间单拍一样下降了? 或者你会说...

Dave Schulz

Dave Schulz

It's interesting. For us it's in the single-digit range. Yes.

这真有趣。 对我们来说,它在个位数范围内。 是。

Steve Tusa

史蒂夫·图萨

Down – down – down...

向下-向下-向下...

John Engel

John Engel

It's not down double digits but it's – yes, no mid-high-single-digit range. Not double-digit though.

不是下降两位数,而是–是的,没有中高个位数范围。 虽然不是两位数。

Steve Tusa

史蒂夫·图萨

Okay. And then I know I try and ask a question almost like every quarter just to kind of reinforce the dynamics, but there's kind of a view out there that there is like an inventory correction that's going on here. I mean, you guys in particular are very good about managing your inventories and you never really get too bloated or too lean is that correct? So, if like somebody's selling into you you're managing that pretty tightly they have a lot of visibility into that right? So, there wouldn't be like a correction at your point in the channel?

好的。 然后我知道我几乎像每个季度一样都在问一个问题,只是为了增强动态性,但是有一种观点认为这里正在进行库存校正。 我的意思是,你们尤其擅长管理库存,而且您从来没有真正变得too肿或太瘦,对吗? 因此,如果像某人正在向您推销产品一样,您正在对其进行严格管理,那么他们对此有很多了解吗? 因此,您的频道中不会有更正的内容吗?

John Engel

John Engel

Correct. And then for us specifically, we didn't end up having our – we increased our inventories in the first half and we spoke about that in the Q2 conference call. And that was one of the drivers of our first [half] cash flow, as well as a significant growth in the AR balance, given the shape of the sales in the first half and the increasing sales growth in May into June. So, when we gave our Q2 earnings call, we were very clear to make some comments around Q3, and said, we do expect very strong free cash flow generation in Q3. And we did specifically talk about two contributors, which was strong collections, which we have executed now and have seen and have benefited from the quarter, as well as inventory reduction. And we reduced inventories over – approximately about $40 million.

正确。 然后,对我们而言,具体来说,我们并没有结束–上半年我们增加了库存,并在第二季度电话会议中谈到了这一点。 鉴于上半年的销售情况和5月至6月的销售增长,这是我们首批[半]现金流的驱动力之一,也是AR余额的显着增长。 因此,当我们发出第二季度财报电话时,我们非常清楚地在第三季度发表一些评论,并表示,我们确实希望第三季度产生非常强劲的自由现金流。 我们确实特别谈到了两个贡献者,它们是强大的收藏品,我们现在执行它们,已经看到了季度并从中受益,以及库存减少。 我们将库存减少了大约4,000万美元。

Dave Schulz

Dave Schulz

About $40 million.

约4000万美元。

John Engel

John Engel

$40 million sequentially in the quarter.

本季度环比增长4000万美元。

Steve Tusa

史蒂夫·图萨

Yes. Yes, that's a good performance. And then just lastly on price – on the kind of pricing side, are you seeing any of your major suppliers get – I wouldn't say aggressive, but in targeted areas try and bring in some business either kind of late in the quarter or as we go forward here in kind of a weaker environment? Is anybody – I wouldn't use the term breaking ranks it's probably too strong, but anybody kind of backing off their aggressive pricing and pulling back on price increases to book deals? Are you seeing that at any of your major suppliers?

是。 是的,这是一个很好的表现。 然后是价格方面的最后一点-在定价方面,您是否看到您的任何主要供应商都得到了-我不会说进取,但是在目标地区尝试在本季度末或之后引入一些业务 我们在一个较弱的环境中前进? 是否有人–我不会使用术语“打破排名”这个词可能太强了,但是有人拒绝了激进的定价并撤回了提价以进行交易吗? 您在任何主要供应商处都看到了吗?

John Engel

John Engel

I'll answer it with two different – I'll break it into a two-part answer. The short answer is no. And for I'll call it, the pricing that they said that kind of worked its way through the channel and impacts our stock and flow business that's the area where they try to move the price increases through. And we've 'got to try to obviously get that moved through the customers. And in some cases, we've got multiyear contract on a global account customer and that's the time lag, right? But the short answer to your question is no.
On that, I have not seen any change in behavior. And Dave's earlier commentary speaks to the record level in terms of number of price increases and magnitude of those increases. On the direct ship business, which in many cases will get special pricing and supplier costing to support that business that always works in a very, I'll call it, it works in a real time way. So, as projects are being bid, we're simultaneously – with customers and contractor customers we're working with supplier partners on what the appropriate level of cost – what cost they're willing to go forward with that project on. And we work that as a team. That dynamic hasn't changed.
That's always a very I'll call it aggressive real-time process. I would say that because contractors have record backlogs and there is a labor shortage for the skilled trades as they continue to work – the number one priority for them is to execute the backlogs. Number two is, they try to take on new business to increase their record backlogs they have to have confidence in the skill and trades. And the uncertainty around pricing is just another dynamic there.
So, that kind of sorts itself out in real time. The way we look at that in good measure is what's our backlog now and we said it was flat sequentially, but the margin rate in our backlog is up a little bit, which really speaks to the WESCO value proposition with contractors. And we're very focused on supply chain services, including prefab and material management capabilities with our contractor customers. We're focused on job site productivity and improving that for our contractor customers. Does that help?

我将用两种不同的方式回答-将其分为两部分。最简洁的答案是不。对于我来说,他们所说的定价通过渠道起作用并影响了我们的库存和流通业务,而这正是他们试图使价格上涨通过的领域。而且,我们'不想试图通过客户明显转移这一点。在某些情况下,我们与全球客户的客户签订了多年合同,这就是时间差,对吗?但是,对您的问题的简短回答是“否”。

在那方面,我没有看到任何行为上的变化。戴夫(Dave)先前的评论在价格上涨的数量和上涨幅度方面达到了创纪录的水平。在直接运输业务中,在很多情况下,它将获得特殊的价格和供应商成本,以支持该业务始终处于非常正常的状态,我称之为实时运行。因此,在投标项目时,我们同时与客户和承包商客户一起与供应商合作伙伴就适当的成本水平进行合作,他们愿意为该项目继续进行什么成本。我们作为一个团队来工作。这种动态没有改变。

我总是称其为积极的实时过程。我要说的是,由于承包商有积压的记录,而熟练技工在继续工作时存在劳动力短缺的情况,因此,执行积压是他们的首要任务。第二点是,他们试图接手新业务以增加积压的记录,他们必须对技能和交易充满信心。定价的不确定性只是那里的另一种动力。

因此,这种情况可以实时解决。我们从好的角度看待现在的积压情况,我们说积压的顺序是持平的,但是积压的保证金率略有上升,这确实说明了WESCO与承包商的价值主张。而且我们非常专注于供应链服务,包括与承包商客户的预制件和材料管理功能。我们专注于工作现场的生产力,并为承包商客户提高生产力。有帮助吗?

Steve Tusa

史蒂夫·图萨

Yes. Alright. That's helpful. I appreciate it. Thanks.

是。 好的。 有帮助 我很感激。 谢谢。

John Engel

John Engel

Thanks

谢谢

会议主持员

The next question comes from Michael McGinn with Wells Fargo. Please go ahead.

下一个问题来自富国银行(Wells Fargo)的迈克尔·麦金(Michael McGinn)。 请继续。

Michael McGinn

迈克尔·麦金(Michael McGinn)

Thank you, If I could just follow up on the acquisition line of questioning discussed earlier, is this something transformational on the digital side where you would entertain a dual-brand strategy kind of like a high touch low touch model? Or is that something – or is it something more that you would integrate it under the WESCO brand?

谢谢您,如果我能继续按照前面讨论的提问方式进行收购,这是否会在数字方面带来变革,您将在其中接受像高接触低接触模式这样的双品牌战略? 还是这件事–还是您可以将其整合到WESCO品牌下吗?

John Engel

John Engel

So, that's an excellent question. As I recall, I probably haven’t gotten that question before. Terrific. I will say that in terms of branding strategy, we already run a dual brand in Canada with customers. So, I'll just take you back and summarize history a little bit. We had a very strong Canadian business. We had the opportunity we start, which was a unique opportunity in our career as a 100-year-old public – private company. We were able – after working that deal for over five years we’re able to make that happen that was acquiring EECOL and that was done seven years ago.
And so, we went to market with a dual brand post acquisition close in Canada and that was expressly the strategy. One, the WESCO brand is lined up with a very large global leading electrical supplier for core electrical. And EECOL is lined up with us as different large leading global leader – electrical supplier leader. So, we've already had that model working within WESCO at a very – on a large-scale basis. And also, other acquisitions that we've done over the years.
We've done over 45 since WESCO spun out of Westinghouse 25 years ago. And there's still a handful of brands that we use where they add value in the value chain and with customers. So, I think that that would be – we would do the right thing from a branding perspective. And we would also – it would be a function of what we're acquiring what the business model is and what we think would make most sense in serving customers.

因此,这是一个很好的问题。我记得,我以前可能没有听说过这个问题。了不起。我会说,就品牌战略而言,我们已经在加拿大与客户建立了双重品牌。因此,我将带您回顾一下历史。我们的加拿大业务非常强劲。我们有开始的机会,这对于作为一家拥有100年历史的上市公司-私有公司来说,是一次职业中的独特机会。我们有能力-在完成这笔交易超过五年之后,我们能够实现收购EECOL的梦想,而这是七年前完成的。

因此,我们在加拿大完成了双重品牌收购后的产品上市,这就是我们的策略。其中之一,WESCO品牌与核心电气的全球领先大型电气供应商联系在一起。 EECOL和我们一起成为其他大型的全球领先领导者–电气供应商领导者。因此,我们已经在WESCO中非常大规模地使用了该模型。还有,这些年来我们进行的其他收购。

自25年前WESCO从西屋公司剥离出来以来,我们已经完成了45多次。在我们使用的少数几个品牌中,它们可以在价值链中和与客户一起增加价值。因此,我认为那是–我们将从品牌角度做正确的事情。而且,我们还将–这将取决于我们所获得的商业模式以及我们认为对客户服务最有意义的东西。

Michael McGinn

迈克尔·麦金(Michael McGinn)

And since we're on the topic of deals and branding there's been some meaningful shifts in your supply chain [Lighting Cooper] with – and as well on the data center side. Can you just comment on those big changes and what you're seeing structurally from a just customer win standpoint going forward?

而且,由于我们的主题是交易和品牌,因此您与[Lighting Cooper]以及在数据中心方面的供应链都发生了有意义的变化。 您能否评论一下这些重大变化,以及从公正的客户获胜角度来看您在结构上所看到的一切?

John Engel

John Engel

Yes. So, I ...

是。 所以我 ...

Michael McGinn

迈克尔·麦金(Michael McGinn)

I'm sorry supplier win standpoint.

对不起供应商取胜的立场。

John Engel

John Engel

No, no. Yes. I understand. That's how I interpreted your question. It's early days on the latest lighting combination that being the announcement of Signify acquiring Eaton's Cooper Lighting business. We've got very strong relationship obviously with all the Cooper divisions that are part of Eaton and Eaton overall. Eaton is our largest supplier partnership. And we have very strong and long-standing relationships with Signify that is the prior Philips.
In both cases those relationships go back well into the Westinghouse days when we were classed as a distribution arm. So, from my perspective and I've been very clear about this with respect to lighting and I know we've had a number of questions and comments around that at our recent Investor Day earlier this year. And – there's a lot of changes occurring fast and I think the manufacturer supplier partners are – they have particular challenges given additional entrants and new entrants in terms of manufacturers of lighting products globally.
As a supply chain solutions provider, we're able to provide good better and best solutions for lighting applications and we can work with our supplier partners to bring the best brands together. Where it turns out to be the differentiator is the control solution and our ability to wrap services around that. And we've got a turnkey retrofit renovation and upgrade set of capabilities that we acquired a number of years ago with Aelux/Lumigent that we have been investing in. And our SLS acquisition earlier this year is supportive of strengthening that.

不,不。是。我明白。我就是这样解释你的问题的。最新的照明组合尚属初期,这是Signify宣布收购Eaton的Cooper Lighting业务的宣布。显然,我们与属于Eaton和Eaton的所有Cooper部门有着非常牢固的关系。伊顿是我们最大的供应商合作伙伴。而且我们与以前的飞利浦(Signify)具有非常牢固且长期的关系。

在这两种情况下,这些关系都可以追溯到西屋时代,当时我们被归类为分销部门。因此,从我的角度来看,我在照明方面对此非常清楚,我知道我们在今年早些时候的最近的投资者日对此提出了许多问题和意见。而且-发生了很多变化,而且我认为制造商供应商的合作伙伴正在-考虑到全球照明产品制造商方面的新进入者和新进入者,他们面临着特殊的挑战。

作为供应链解决方案提供商,我们能够为照明应用提供更好,更好的最佳解决方案,并且我们可以与供应商合作伙伴合作,将最佳品牌整合在一起。最终导致差异化的是控制解决方案,以及我们围绕该解决方案包装服务的能力。而且,我们已经在几年前通过我们一直在投资的Aelux / Lumigent获得了整套翻新改造和升级功能。今年早些时候对SLS的收购也有助于加强这一功能。

Michael McGinn

迈克尔·麦金(Michael McGinn)

Alright, thank you very much. I'll pass it along.

好的,非常感谢。 我会过去的。

会议主持员

The next question comes from Robert Barry with Buckingham Research. Please go ahead.

下一个问题来自白金汉研究公司的Robert Barry。 请继续。

罗伯特巴里

Hi, guys. Good morning

嗨,大家好。 早上好

John Engel

John Engel

Morning, Robin.

早上,罗宾。

罗伯特巴里

I want to ask you about SG&A, but since it keeps coming up the M&A question just curious your thoughts about doing a transformational acquisition at this what some think is a late stage in the cycle.

我想问您有关SG&A的问题,但由于它不断出现并购问题,因此您只是想知道您对于在这个周期的后期阶段进行转型收购的想法。

John Engel

John Engel

So, again, I think we were very clear about what our plans and strategies were at Investor Day and I'll reinforce them. Remember what we did at Investor Day. We took a – I tried to provide a very forward-looking view of the state of evolution, the state of disruption i.e. transformation being required in the B2B value chain.
I think the opportunities are significant, particularly for the largest and those companies that are well capitalized. So, which we are clearly in that class. And we were very clear about our overall enterprise strategy and our acquisition strategy as part of that, which again we can consolidate large core electrical distributors expand in their adjacent products and service categories and invest in digital to help lead the digital transformation.
So, that's our ambition. I think that we will be very thoughtful. You can't always control the timing of deals. And so, we will be very thoughtful and take advantage of opportunities when they arise appropriately. And we've got a very strong balance sheet as I commented on earlier. And have shown strong and consistent free cash flows across all phases of the economic cycle.
So, the thing with acquisitions is, you can't always – they're just – you can't time them, right? I mean it would be great to say, we could strategically time them, but you can't. You've got to be prepared to when it makes sense to take action. And that's – the great example again is EECOL because we worked that for many, many years and we had our chance to get a century-old company there was a very strong operator. And we did that right?
So, I think again we look at the opportunities. Obviously, the numbers have to work, but this is the – our strategic view is, there's an excellent opportunity to lead the consolidation and digital transformation of B2B distribution for our served end markets in the value chains that we operate in.

因此,我想我们再次非常清楚投资者日的计划和战略,我将予以加强。记住我们在投资者日所做的事情。我们采取了一种方法–我试图提供一种进化状态的前瞻性观点,即破坏状态,即B2B价值链中需要转型的状态。

我认为机会是巨大的,特别是对于最大的公司和资本充足的公司。因此,我们很明显属于这一类。而且我们非常清楚我们的整体企业战略和收购战略,其中,我们可以再次巩固大型核心电气分销商在其相邻产品和服务类别中的扩张,并投资于数字化以帮助引领数字化转型。

所以,这就是我们的野心。我认为我们会非常周到的。您不能总是控制交易的时间。因此,我们将非常周到,并在适当时机把握机会。正如我之前提到的,我们的资产负债表非常强大。并且在整个经济周期的各个阶段都显示出强劲而稳定的自由现金流。

因此,并购的事情是,您不能总是–他们只是–您不能为它们计时,对吧?我的意思是说,我们可以策略性地安排他们的时间,但是您不能。您必须准备采取行动时才有意义。那就是– EECOL就是一个很好的例子,因为我们已经工作了很多年,而且我们有机会让一家有着百年历史的公司拥有一个非常强大的运营商。我们做对了吗?

因此,我认为我们再次关注机会。显然,数字必须起作用,但这是–我们的战略观点是,存在一个极好的机会来领导我们所经营的价值链中服务的终端市场的B2B分销的整合和数字化转型。

罗伯特巴里

Got it. Got it. Okay. Thank you. I did want to just touch on the SG&A. Performance there continues to be very good very low SG&A growth. I'm assuming there's maybe about $5 million from SLS in that number, but give or take how long do you think you can sustain growing the SG&A at what looks like less than 1% kind of adjusted for the M&A?

得到它了。 得到它了。 好的。 谢谢。 我确实只想谈一下SG&A。 SG&A增速一直很低,但业绩仍然很好。 我假设SLS大约可以提供500万美元,但是您认为可以将SG&A的增长保持在不到1%的水平上是多少?

Dave Schulz

Dave Schulz

Rob, it's Dave Schulz. So, again, what we see right now in our third quarter SG&A is the increase year-over-year is primarily driven by the SLS acquisition. As a company, we have a long track record of carefully managing our costs. One of the other things that has impacted our SG&A in the current quarter, the third quarter is obviously we're not performing to our internal expectations across the entire business and therefore some of our incentive compensation accruals are lower than they were in the prior year.
So, that's also having an impact on the SG&A in the third quarter. Going forward, obviously that's something that we want to make sure that we're able to restore. So, again, we'll provide more details about our 2020 on our January earnings call.

Rob,是Dave Schulz。 因此,再次,我们现在在第三季度的SG&A中看到的是同比增长主要是由SLS收购推动的。 作为一家公司,我们在认真管理成本方面拥有悠久的记录。 影响本季度销售,一般及行政管理的其他因素之一是,第三季度显然是我们在整个业务中的表现均未达到内部预期,因此,我们的某些激励性薪酬应计费用低于上年同期 。

因此,这也对第三季度的SG&A产生了影响。 展望未来,显然这是我们要确保能够恢复的事情。 因此,我们再次在1月的收益电话中提供有关2020年的更多详细信息。

罗伯特巴里

Got it. And just maybe a quick housekeeping item. It looks like the share count keeps coming down I know you've been doing a fair amount of repose. What now is the share count assumed in this guidance update?

得到它了。 也许只是一个快速的家政服务。 股份总数似乎一直在下降,我知道您已经做了很多休息。 本指南更新中现在假定的股份数量是多少?

Dave Schulz

Dave Schulz

Yes. So, again, the driver of the share count reduction in the third quarter was really just a carryover of what we saw from the $150 million share repurchase that was initiated in the second quarter. In terms of the share count for the full-year, I think if you took a weighted average of the four quarters, you'd get somewhere in the range of 43.3 to 43.5. I think that would be the right expectation to think about as you're looking at your model.

是。 因此,再次,第三季度减少股票数量的驱动力实际上只是我们从第二季度发起的1.5亿美元股票回购中看到的结转。 就全年的份额数而言,我认为,如果您对四个季度进行加权平均,那么您将获得43.3至43.5的范围。 我认为这是在查看模型时要考虑的正确期望。

罗伯特巴里

Alright, thank you.

好,谢谢。

会议主持员

The next question comes from Christopher Glynn with Oppenheimer. Please go ahead.

下一个问题来自Oppenheimer的Christopher Glynn。 请继续。

Christopher Glynn

Thanks. Good morning. I wanted to follow up on the transformational deal comment. So, it takes two to tango, just wondering if there is any signs here, kind of, parallel players in the large electrical distributor space here thinking similarly about the industry structure as you are.

谢谢。 早上好。 我想跟进有关转型交易的评论。 因此,探戈需要两个人,只是想知道这里是否有迹象表明,在大型配电市场中,类似的平行参与者正在思考与您所处的行业结构类似的问题。

John Engel

John Engel

You'd have to ask them Chris. I would be speculating.

你必须问他们克里斯。 我会猜测。

Christopher Glynn

Okay. And then another housekeeping. Does interest expense revert to kind of the first half run rates after the adjustment in the third quarter?

好的。 然后再做家务。 在第三季度调整后,利息费用会恢复为上半年的运行率吗?

Dave Schulz

Dave Schulz

That's correct, Chris. So, again the – we did have the benefit – a noncash benefit in the third quarter. That was reversing on an accrual that was made years ago related to this Canadian transfer pricing issue. You should expect that that's going to revert back to the trend in the first two quarters of the year.

没错,克里斯。 因此,我们确实有收益–第三季度非现金收益。 这与几年前与加拿大转让定价问题有关的应计费用相反。 您应该期望这将恢复到今年前两个季度的趋势。

Christopher Glynn

Okay. And then if I can get one on gross margin. It – noted mix differences, but the rates weren't worlds apart so maybe the supplier price increases were the bigger piece there. I'm curious if you're seeing good visibility to reclaiming that? Or if kind of mid-18 is a good place to reside for now?

好的。 然后,如果我能在毛利率上获得一分。 它注意到了混合的差异,但是费率并没有分开,所以也许供应商的价格涨幅更大。 我很好奇,如果您能看到有很好的知名度可以回收该产品? 还是说现在18岁左右是居住的好地方?

Dave Schulz

Dave Schulz

So, the price cost issue from the supplier increases is the larger of the two drivers that we called out so that's fair. Again, we're continuing to monitor what comes through from the supplier price increases and we're focused on catching up and driving to not only the dollar per dollar price increases, but also the gross margin rate benefit that we would get typically in an inflationary environment. Quite frankly, the rate and pace of the supplier price increases has considerably hampered our ability to get that done. We normally have a lag, but obviously in the third quarter, we saw more of an impact than we have historically seen.

因此,供应商增加的价格成本问题是我们所说的两个驱动因素中较大的一个,这很公平。 同样,我们将继续监视供应商提价带来的结果,我们将重点放在赶上并推动不仅实现美元兑美元价格上涨,而且实现我们通常会从供应商提价中获得的毛利率。 通胀环境。 坦率地说,供应商价格上涨的速度和步伐严重阻碍了我们完成这项工作的能力。 我们通常会有所滞后,但是显然在第三季度,我们看到的影响要比历史上看到的更多。

Christopher Glynn

Great, thanks for that.

太好了,谢谢。

会议主持员

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

至此,我们的问答环节结束。 我想将会议转给约翰·恩格尔(John Engel)作结束发言。

John Engel

John Engel

Thank you all for your time this morning. Brian Begg and Will are available as always to take your questions. And we look forward to seeing many of you at one of our investor marketing events. We will be participating in during the fourth quarter, including the Baird 2019 Global Industrial Conference next week. Thanks again and have a great day.

谢谢大家今天早上的时间。 Brian Begg和Will一如既往地回答您的问题。 我们期待与您见面,参加我们的一项投资者营销活动。 我们将参加第四季度,包括下周的Baird 2019全球工业会议。 再次感谢,祝您有美好的一天。

会议主持员

The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.

会议现在结束。 感谢您参加今天的演讲。 您现在可以断开连接。

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