Core Viewpoint - The company expects a low impact from Trump's tariffs on its business operations [1] Group 1 - The company assesses that the tariffs will not significantly affect its overall performance [1] - The management believes that the current market conditions and demand will mitigate potential negative effects from the tariffs [1]

Financial Data and Key Metrics Changes - Total company reported sales for the quarter were nearly $4,600,000,000, up 5.6% or 5.1% on a daily constant currency basis [8][11] - Operating margins for the company were 14.9%, down 50 basis points compared to 2024 [11] - Diluted EPS finished the quarter at $9.97, up $0.21 or 2.2% compared to the prior year period [11] - Operating cash flow came in at $377 million, allowing the company to return a total of $336,000,000 to shareholders through dividends and share repurchases [8] Business Line Data and Key Metrics Changes - High-tech Solutions segment sales were up 2.5% on a reported basis or up 2.8% on a daily constant currency basis, driven by volume growth and modest price inflation [12] - Endless assortment segment sales increased 19.7% or 16.3% on a daily constant currency basis, with Zoro U.S. up 20% and MonotaRO achieving 16.4% growth [15] - Operating margins for the endless assortment segment increased by 200 basis points to 9.9% [15] Market Data and Key Metrics Changes - The MRO market remained muted but was softer than expected, with strong performance from contractor and healthcare customers helping offset slower growth in other areas [12] - Preliminary total company July sales were up slightly north of 6% on a daily constant currency basis, aided by softer comps in the prior year period [23] Company Strategy and Development Direction - The company is focused on helping customers drive efficiencies, lower purchasing costs, and improve inventory management [5][6] - Strategic investments in product information and digital capabilities are enhancing the company's supply chain [7] - The company is committed to supporting local communities with emergency response and recovery efforts [7] Management's Comments on Operating Environment and Future Outlook - The external environment continues to present uncertainty, but the company remains confident in its ability to deliver value [5][8] - The company anticipates continued LIFO headwinds and further price cost timing pressures impacting performance in the back half of the year [9] - The updated outlook for 2025 reflects a lower gross margin guide, now expected to be between 38.6% and 38.9% [22] Other Important Information - The company is adjusting its sales outlook to reflect the latest FX rates and pricing actions, with total company sales for the third quarter expected to be up north of 5% on a daily constant currency basis [22][23] - The company plans to continue optimizing Zoro's assortment, with a net SKU decline of 1,100,000 in the quarter [17] Q&A Session Summary Question: Impact of LIFO accounting on operating income - Management noted that if the company were on FIFO, the second half outlook would not have included the negative impacts of LIFO, but underlying operations would remain similar [28] Question: Progression from Q3 to Q4 - Management indicated that pricing will continue to build with the September pricing change, leading to improved gross margins in Q4 [30] Question: Decision-making process for pricing actions - Management decided to keep price increases on a normal schedule for customer stability, despite being slightly upside down in price cost [37] Question: Zoro's pricing optimization and SKU reduction - The pricing decision has been in the works for about a year, focusing on improving customer experience by eliminating low-volume items [40] Question: Customer demand and market dynamics - Management acknowledged that while market demand is expected to be muted, they feel confident in their ability to realize prices despite lower market demand [113] Question: Government customer dynamics - Management reported stability in government contracts, with no significant cancellations impacting the business [120]

Financial Data and Key Metrics Changes - The company reported sales of $496 million and net income of $5.2 million for the second quarter of 2025, compared to $7.7 million in the same period of 2024 [5][16] - Adjusted EBITDA for the quarter was $20.3 million, a 26% increase compared to the first quarter of 2025, but down from $21.3 million in the prior year period [6][17] - Consolidated operating expenses totaled $110.4 million, up from $104.6 million in 2024, reflecting the addition of Metalworks [17][18] - The company reduced its total debt to $233 million, which is $39 million lower than year-end levels [18] Business Segment Data and Key Metrics Changes - The Carbon segment recorded second quarter EBITDA of $12.5 million, while the Pipe and Tube segment achieved adjusted EBITDA of $6.7 million [12] - The Specialty Metals Group saw EBITDA of $5.9 million, representing over 60% improvement from the first quarter [12] - All three business segments continued to deliver positive EBITDA, indicating resilience despite market challenges [7] Market Data and Key Metrics Changes - Shipping data indicated that service center shipping rates in 2025 are below those of 2024, yet the company's flat roll shipments for the first half of 2025 remained above the same period in 2024 [10] - The company gained market share across its stainless and aluminum product lines, benefiting from increased domestic mill price increases following tariff adjustments [13] Company Strategy and Development Direction - The company is focused on diversifying into higher value metal-intensive products and expanding fabricating capabilities [7] - A robust capital expenditure plan for 2025 includes $35 million primarily for organic growth opportunities, with several new processing and automation projects scheduled to enhance productivity [13][19] - The company aims to capitalize on trends towards increased U.S. manufacturing and fabrication services, particularly among OEMs [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging environment due to tariffs and market uncertainties but expressed optimism about emerging trends and potential demand growth [9][14] - The company expects the third quarter to be seasonally slower, with typical declines of 5% to 6% sequentially from the second quarter [31] - Management highlighted the importance of resolving uncertainties related to tariffs and tax legislation as potential tailwinds for future growth [40][46] Other Important Information - The effective tax rate for the second quarter was approximately 28%, with expectations for the full year to be between 28% and 29% [19] - The company has paid regular quarterly dividends since February 2006, with a current dividend of $0.16 per share [19][20] Q&A Session Summary Question: Details on new processing and automation equipment - Management discussed the benefits of new high-speed lasers and automation systems aimed at improving safety and efficiency [22][23] Question: Insights on Pipe and Tube segment profitability - Management noted strong growth in the data center sector and increased interest from OEMs for fabrication services [30] Question: Trends in July and August demand - Management indicated that July is typically slow due to holidays, but they expect a normal pickup in August [31] Question: Drivers of flat roll margin improvements - Margin improvements were attributed to changes in index pricing and a better product mix, including more coated products and value-added work [36][37] Question: Outlook for pricing and working capital - Management expects a flattish outlook for working capital in Q3, with potential for cash flow improvements in Q4 depending on pricing trends [64] Question: M&A opportunities - Management confirmed that they are actively looking for acquisition opportunities and have seen an increase in potential candidates [68]

美联储博斯蒂克：如果关税成功，美联储不能视而不见。 ...

（文章来源：新华财经） 美联储理事沃勒称，关税将对价格产生一次性影响。 ...

Core Viewpoint - The German Chancellor Merz announced that the EU will negotiate with the US regarding steel export quotas, focusing on avoiding excessive tariffs [1] Group 1: Trade Agreement Details - A trade agreement was reached last month, setting tariffs at 15% for most products, while certain sectors, including steel and aluminum, are still under negotiation with tariffs at 50% [1] - The current task is to establish the "details" of the negotiations [1] Group 2: Impact on European Industry - Merz described the agreement as "painful" for the entire European industry [1] - He emphasized that the EU does not have the capacity to initiate a full-scale trade dispute, as it would result in losses, particularly for Europeans [1]

Investment Rating - The report does not explicitly state an investment rating for the company, but it indicates strong performance and positive growth trends, suggesting a favorable outlook for investors. Core Insights - Apple reported FY3Q25 revenue of $94.0 billion, exceeding market expectations of $89.2 billion, with a year-over-year growth of 9.6% and a quarter-over-quarter decline of 1.4% [1][6] - Earnings per share (EPS) was $1.57, surpassing the consensus estimate of $1.43 [1][6] - Overall gross margin was 46.5%, at the high end of guidance but down 60 basis points quarter-over-quarter, primarily due to approximately $800 million in tariff costs [1][6] - iPhone revenue reached $44.6 billion, up 13% year-over-year, with double-digit growth in emerging markets and a healthy channel inventory [2][7] - Services revenue was $27.4 billion, also up 13% year-over-year, with strong performance across both developed and emerging markets [2][8] - Management guidance for 4Q25 indicates expected revenue growth in the mid-to-high single-digit percentage range, with gross margin projected between 46% and 47% [3][9] Summary by Sections Financial Performance - FY3Q25 revenue: $94.0 billion, YoY growth: 9.6%, QoQ decline: 1.4% [1][6] - EPS: $1.57, exceeding expectations [1][6] - Overall gross margin: 46.5%, down 60 bps QoQ due to tariffs [1][6] Product Performance - iPhone revenue: $44.6 billion, YoY growth: 13%, with double-digit growth in emerging markets [2][7] - iPhone 16 series shipments grew by double digits compared to the iPhone 15 series [2][7] - Revenue in China increased by 4% QoQ, driven by subsidy programs [2][7] Services Performance - Services revenue: $27.4 billion, YoY growth: 13%, with double-digit growth in both developed and emerging markets [2][8] - U.S. App Store achieved double-digit growth, reaching an all-time high [2][8] Future Guidance - 4Q25 revenue expected to grow in the mid-to-high single-digit percentage range [3][9] - Gross margin projected between 46% and 47%, including approximately $1.1 billion in tariff costs [3][9] - Operating expenses expected to be between $15.6 billion and $15.8 billion [3][9]

Report Industry Investment Rating - The report recommends a strategy of buying on dips in August and maintaining this strategy in the medium to long term [6][7] Core Viewpoints - In the short term, copper prices are under pressure due to the implementation of copper tariffs (excluding electrolytic copper) and the decline in the expectation of a September interest rate cut. However, with the expectation of two interest rate cuts this year and the tight supply of copper mines throughout the year, copper prices are supported. In the long run, as tariffs ease and the market expects interest rate cuts in Q3, liquidity will gradually ease the upper - limit pressure on metals, and the tight supply of copper mines will also support copper prices [7] Summary by Directory 1. Market Outlook (PART 01) - In August, maintain the strategy of buying on dips. The exclusion of electrolytic copper from the 50% copper tariff on August 1 may lead to the outflow of US electrolytic copper and accelerate the supply - demand balance in non - US regions. The Fed's inaction in July, combined with strong US economic and employment data and the risk of rising inflation, has further reduced the expectation of a September interest rate cut, which suppresses copper prices. In the medium to long term, as tariffs ease and the market expects interest rate cuts in Q3, there are still expectations of two interest rate cuts this year, which will gradually ease the upper - limit pressure on metals. The tight supply of copper mines throughout the year also supports copper prices. Although copper prices are currently in short - term adjustment with a support level of 77,000, the medium - to - long - term strategy of buying on dips is maintained [6][7] 2. Market Review (PART 02) - In July, copper prices were generally in a high - level consolidation. From late June to early July, due to the expectation that the "232" policy might be implemented in September or October, the shortage of refined copper supply in non - US regions intensified, and copper prices rose. On July 3, Shanghai copper reached 80,990 yuan/ton, equivalent to the integer mark of 10,000 US dollars/ton for London copper. On July 8, the US announced a 50% tariff on copper, and copper prices fell from the high. In late July, the "anti - involution" trend in multiple industries and the start of the Yarlung Zangbo River Hydropower Station project boosted market sentiment, and copper prices reached 80,000 yuan/ton again. However, the "anti - involution" had limited impact on the non - ferrous supply, and the downstream acceptance of high prices was poor. After the sentiment subsided, copper prices returned to the fundamentals [8][9] 3. Macroeconomic Factors (PART 03) - **Tariff Policy**: The Sino - US tariff extension for 90 days has temporarily reduced tariff disturbances. The US announced a 50% tariff on imported semi - finished copper products and copper - intensive derivative products from August 1, excluding copper input materials and copper scrap. This led to a sharp decline in New York copper futures and related ETFs. Although electrolytic copper is excluded from the tariff, there is still long - term uncertainty as the US may consider imposing tariffs on electrolytic copper from 2027 [13][17] - **Federal Reserve Policy**: The Fed maintained the benchmark interest rate at 4.25% - 4.50% in July, which was in line with market expectations. Two Fed governors voted against maintaining the interest rate, supporting a 25 - basis - point interest rate cut in July. The strong US economic and employment data and the risk of rising inflation have reduced the expectation of a September interest rate cut [20][22] - **Domestic Economy**: China's Q2 GDP annual rate was 5.2%, and the first - half GDP increased by 5.3% year - on - year. Fixed - asset investment increased by 2.8% year - on - year in the first half of the year, while real estate development investment decreased by 11.2%. The Politburo meeting in July emphasized the need for macro - policies to continue to be effective in the second half of the year, release domestic demand potential, and promote high - level opening - up. The "anti - involution" policy and the acceleration of the implementation of growth - stabilizing policies may support industrial product prices [27] - **Policy Impact on Supply and Demand**: From the supply side, policies will guide the copper smelting industry to control production capacity, which is expected to restore TC/RC processing fees and ease the contradiction between mining and smelting. From the demand side, the "anti - involution" series of policies focus on promoting stable growth in the manufacturing industry, which will boost the downstream demand for copper. In the long run, the supply - demand mismatch may further push up the copper price center [29] 4. Fundamental Factors (PART 04) - **Supply Side** - **Copper Ore Import**: In June, China's copper ore and concentrate imports were 2.3497 million tons, a month - on - month decrease of 1.91% and a year - on - year increase of 1.77%. The supplies from Chile and Peru, the top two suppliers, continued to decline, with Peru's supply dropping by about 15%. The long - term processing fees negotiated between domestic smelters and overseas mines this year are zero, and the spot processing fees in the domestic market remain low, indicating that the tight supply of copper mines is difficult to ease in the short term [30] - **Copper Ore Processing Fees**: As of the week of July 25, the Mysteel standard clean copper concentrate TC weekly index was - 42.98 dollars/dry ton, up 0.22 dollars/dry ton from the previous week. The spot market for copper concentrates is less active, and processing fees are "stable with a slight correction" [34] - **Refined Copper Inventory**: Affected by the "232" tariff policy, the rush to import copper since April has led to a shortage of refined copper supply in non - US regions. However, as the policy expectation is fulfilled, LME copper inventory has increased. As of July 25, LME copper inventory reached 128,000 tons, an increase of 38,000 tons from the end of June. COMEX copper inventory is also increasing [38] - **Electrolytic Copper Production**: In the first half of 2025, China's electrolytic copper production reached a new high. From January to June, the cumulative production was 6.593 million tons, a year - on - year increase of 674,700 tons or 11.40%. The estimated production in July was 1.1504 million tons, a month - on - month increase of 1.36% and a year - on - year increase of 11.9%. Although smelting is in a loss stage, the willingness to cut production actively is not strong [42] - **Scrap Copper Import**: In June, China's scrap copper imports were 183,200 tons, a month - on - month decrease of 1.06% and a year - on - year increase of 8.49%. The supply from Thailand, the new largest scrap copper supplier, continued to increase, while the supply from the US dropped significantly due to tariff policies. However, due to the adjustment of the smelting raw material structure, domestic smelters' demand for scrap copper has increased, and the increased supply from other countries has made up for the shortfall [45] - **Demand Side** - **Power Sector**: As of the end of June, the national cumulative power generation installed capacity was 3.65 billion kilowatts, a year - on - year increase of 18%. The solar power installed capacity was 1.1 billion kilowatts, a year - on - year increase of 54.2%. The new photovoltaic installed capacity in June decreased significantly after the "5.31 rush - to - install" period. In 2025, the investment in the national power grid is expected to exceed 650 billion yuan for the first time. From January to June, the cumulative investment in the power grid was 291.1 billion yuan, a year - on - year increase of 14.6%. The power supply project investment also increased significantly. However, affected by the off - season and high copper prices, the wire and cable operating rate in June dropped to 72.41% [49] - **Real Estate Sector**: In the first half of 2025, the national real estate development investment decreased by 11.2% year - on - year. The new construction area, completion area, and other indicators all declined. Although real estate sales are basically stable and inventories are decreasing, the demand for copper in the real estate sector remains weak [53] - **Automobile Sector**: From January to June, automobile production and sales increased by 12.5% and 11.4% year - on - year respectively. New energy vehicle production and sales increased by 41.4% and 40.3% year - on - year respectively. The export of automobiles and new energy vehicles also increased significantly. With the implementation of relevant policies and the rich supply of new products, the increase in automobile production will drive copper consumption [57] - **Home Appliance Sector**: In June 2025, the national air - conditioner production was 28.383 million units, a year - on - year increase of 3.0%. The cumulative production from January to June was 163.296 million units, a year - on - year increase of 5.5%. In August, the total production plan for air - conditioners, refrigerators, and washing machines was 26.97 million units, a year - on - year decrease of 4.9%. Although the production plan for air - conditioners in August still decreased year - on - year, the decline was expected to narrow compared with the previous month [58]

Financial Data and Key Metrics Changes - Second quarter sales were $1.1 billion, down 6% compared to 2024, primarily due to soft demand in residential end markets, automotive, and hydraulic cylinders, along with restructuring-related sales attrition [14][15] - Adjusted EBIT for the second quarter was $76 million, up $4 million from the previous year, driven by metal margin expansion and disciplined cost management [18] - Adjusted EPS for the second quarter was $0.30, a 3% increase from $0.29 in the same quarter last year [18][23] - Total debt was reduced by $143 million to $1.8 billion, with total liquidity at $878 million [19][20] Business Line Data and Key Metrics Changes - Bedding product sales decreased by 11% year-over-year, with weakness in mattresses and adjustable bases offsetting strong trade rod and wire sales [15][16] - Specialized products saw a 5% decline in sales, with aerospace growth of 6% year-over-year offset by declines in automotive and hydraulic cylinders [17] - Furniture, flooring, and textile product sales were down 2%, with positive growth in work furniture and textiles but declines in home furniture and flooring products [15][18] Market Data and Key Metrics Changes - The mattress market volume is expected to decline mid-single digits for the full year, with domestic production down high single digits [16] - Tariff impacts have varied across businesses, with some segments experiencing disruptions while others have seen benefits from increased metal margins [8][11] - The company is actively engaged in mitigating tariff impacts by shifting production and sourcing to less affected regions [8][12] Company Strategy and Development Direction - The company is nearing completion of its restructuring plan, which aims to strengthen profitability and balance sheet [24][25] - Future cash flow will be directed towards organic growth investments, strategic acquisitions, and potential share repurchases [21][25] - The company is focused on enhancing operational efficiency and profitability while navigating macroeconomic uncertainties [13][24] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding consumer health, noting an uptick in demand as consumer confidence improves [50][52] - The company anticipates challenges in the second half of the year, particularly in adjustable beds and specialty foam due to ongoing market dynamics [62] - Management remains confident in the company's position to leverage improvements once consumer demand fully re-engages [25] Other Important Information - Restructuring costs are now expected to be between $15 million and $25 million for 2025, down from previous estimates [22] - The company maintained its full-year 2025 sales guidance, projecting sales between $4 billion and $4.3 billion, representing a decline of 2% to 9% compared to 2024 [23] Q&A Session Summary Question: Can you connect the bedding consumption number to U.S. volume? - Management explained that U.S. spring volume was down 9%, with a portion attributed to sales attrition from restructuring [33][36] Question: What is the outlook for metal margins? - Management indicated that metal margins are expanding and are expected to remain sustainable due to tariffs [39] Question: What factors influenced the decision to retain certain facilities? - The decision was based on updated assessments of customer relationships and market dynamics [41][42] Question: How is the health of the consumer affecting expectations for volume and demand? - Management noted a soft start to the second quarter but observed improvements leading up to Memorial Day and into July [50][52] Question: What are the price-cost dynamics across segments? - Management is working with suppliers to absorb tariff costs and is passing through pricing where necessary [53] Question: Can you provide guidance by segment for sales and operating margins? - Management expects sales and volumes to decline across segments, with varying impacts on margins [54][55] Question: What is the outlook for home furniture performance? - Management noted a bifurcation in the home furniture market, with higher price point furniture performing better than mid-price point products [76][78]

Financial Data and Key Metrics Changes - Second quarter sales were $1.1 billion, down 6% compared to 2024, primarily due to soft demand in residential end markets, automotive, and hydraulic cylinders, along with restructuring-related sales attrition [16][20] - Adjusted EBIT for the second quarter was $76 million, up $4 million from the previous year, driven by metal margin expansion and disciplined cost management [19] - Adjusted earnings per share (EPS) for the second quarter was $0.30, a 3% increase from $0.29 in the same quarter last year [19][25] - Total debt was reduced by $143 million to $1.8 billion, leading to a decrease in net debt to trailing twelve-month adjusted EBITDA to 3.5 times [20][21] Business Line Data and Key Metrics Changes - Bedding product sales decreased by 11% year-over-year, with weakness in mattresses and adjustable bases offsetting strong trade rod and wire sales [16][17] - Specialized products segment saw a 5% decline, with aerospace growth of 6% year-over-year offset by declines in automotive and hydraulic cylinders [18] - Furniture, flooring, and textile products sales were down 2%, with positive growth in work furniture and textiles but declines in home furniture and flooring products [19] Market Data and Key Metrics Changes - The U.S. mattress market production was down mid to high single digits, with total mattress consumption estimated to be down low single digits year-over-year [17][18] - Tariff impacts varied across businesses, with the recent tariff changes being a net positive overall, although concerns about inflation and consumer demand persist [10][12] - The company is actively shifting production and sourcing to mitigate tariff impacts, particularly in the bedding segment where steel tariffs have led to expanded metal margins [11][14] Company Strategy and Development Direction - The company is nearing completion of its restructuring plan, which is expected to strengthen profitability and balance sheet [26] - Future cash flow will be directed towards organic growth investments, strategic acquisitions, and potential share repurchases [27][22] - The company is focused on enhancing operational efficiency and profitability while navigating macroeconomic uncertainties [15][26] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding consumer health, noting an uptick in demand as consumer confidence improves, particularly around holiday periods [50][51] - The company anticipates continued challenges in the bedding segment due to customer changes and promotional dynamics [66] - Management remains confident in the company's position to leverage improvements once consumer demand fully reengages [27][26] Other Important Information - Restructuring costs are now expected to be between $15 million to $25 million for 2025, down from previous estimates, with total restructuring costs projected at $65 million to $75 million [23] - The company maintained its full-year 2025 sales guidance, expecting sales in the range of $4 billion to $4.3 billion, reflecting a decline of 2% to 9% compared to 2024 [24][25] Q&A Session Summary Question: Insights on bedding business consumption numbers - Management explained that U.S. spring volume was down 9%, with a third of that attributed to sales attrition from restructuring, indicating that they are not losing market share [31][37] Question: Metal margin acceleration and tariff impacts - Management confirmed that metal margins are expanding sequentially and year-over-year, positively impacted by steel tariffs [38][40] Question: Changes in restructuring plan and facility retention - Management noted that the decision to retain certain facilities was based on updated market assessments and customer relationships [41][43] Question: Consumer health and macro uncertainty - Management indicated that consumer confidence has improved, leading to a more optimistic outlook for the third quarter compared to the first quarter [50][52] Question: Pricing strategies to offset tariff impacts - Management stated that they are working with suppliers to absorb tariff costs and are passing through pricing when necessary, maintaining pricing power across segments [55] Question: Segment guidance and operating margin expectations - Management provided guidance indicating expected sales and volume declines across segments, with varying margin expectations [56][57] Question: Home furniture performance and market dynamics - Management discussed the bifurcation in the home furniture market, with higher price point furniture performing well while mid-price point customers faced volume declines due to tariff impacts [79][81]