Axalta Coating Systems Ltd (AXTA) 2024 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Axalta Coating Systems Q2 2024 earnings call. (Operator Instructions) Today's call is being recorded and a replay will be available through August 8. Those listening after today's call, should please note that the information provided in the recording will not be updated and therefore may no longer be current. I will now turn the call over to Colleen Lubic, Vice President of Investor Relations. Please go ahead.

女士們、先生們，感謝你們的支持，並歡迎參加艾仕得塗料系統 2024 年第二季財報電話會議。 （操作員說明）今天的通話正在錄音，重播將持續到 8 月 8 日。我現在將把電話轉給投資者關係副總裁科琳·盧比克 (Colleen Lubic)。請繼續。

Thank you and good morning. This is Colleen Lubic, Vice President of Investor Relations. I'm excited to join you today for my first earnings call. We appreciate your continued interest and welcome you to our second quarter 2024 financial results conference call. Joining me today are Chris Villavarayan, CEO and President; and Carl Anderson, Senior Vice President and Chief Financial Officer.

謝謝你，早安。我是科琳‧盧比克 (Colleen Lubic)，投資者關係副總裁。我很高興今天能參加我的第一次財報電話會議。我們感謝您的持續關注，並歡迎您參加我們的 2024 年第二季財務業績電話會議。今天加入我的是執行長兼總裁 Chris Villavarayan；以及高級副總裁兼財務長卡爾·安德森。

We've released our quarterly financial results this morning and posted a slide presentation to the Investor Relations section of our website at axalta.com, which we will be referencing during this call. Our prepared remarks, the slide presentation and our discussion today may contain forward-looking statements reflecting the company's current view of future events and their potential effect on Axalta's operating and financial performance.

今天早上，我們發布了季度財務業績，並在 axalta.com 網站的投資者關係部分發布了幻燈片演示，我們將在本次電話會議中參考該幻燈片。我們準備好的演講、幻燈片簡報和今天的討論可能包含前瞻性陳述，反映了公司當前對未來事件及其對艾仕得營運和財務表現的潛在影響的看法。

These statements involve uncertainties and risks and actual results may differ materially from those forward-looking statements. Please note that the company is under no obligation to provide updates to these forward-looking statements.

這些陳述涉及不確定性和風險，實際結果可能與這些前瞻性陳述有重大差異。請注意，該公司沒有義務提供這些前瞻性陳述的更新。

Our remarks and this slide presentation also contains various non-GAAP financial measures and the appendix to the slide presentation, we've included reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures. For additional information regarding forward-looking statements and non-GAAP financial measures, please refer to our filings with the SEC.

我們的評論和本投影片簡報還包含各種非 GAAP 財務指標和投影片簡報的附錄，我們已將這些非 GAAP 財務指標與最直接可比較的 GAAP 財務指標進行了調整。有關前瞻性陳述和非 GAAP 財務指標的更多信息，請參閱我們向 SEC 提交的文件。

I will now turn the call over to Chris.

我現在將把電話轉給克里斯。

Thank you, Colleen, and good morning, everyone. Before we get started, I'm pleased to announce that Chris Evans, formerly Executive Vice President of Investor Relations, has joined our global strategy group, where he'll play an important role in driving our 2026 A plan. Colleen Lubic has taken the lead for us in Investor Relations. I congratulate both of them in their new positions.

謝謝你，科琳，大家早安。在我們開始之前，我很高興地宣布，前投資者關係執行副總裁 Chris Evans 已加入我們的全球策略團隊，他將在推動我們的 2026 A 計劃方面發揮重要作用。科琳·盧比克 (Colleen Lubic) 負責領導我們的投資者關係工作。我祝賀他們倆就任新職務。

The executive team has done an amazing job of working together to achieve and exceed our targets as demonstrated by the beat and raise this quarter. I want to recognize the entire organization for executing flawlessly in a soft macro environment. In the second quarter, we had the highest recorded quarterly net sales and adjusted EBITDA in the company's history.

正如本季度的節拍和加薪所證明的那樣，執行團隊在共同努力實現並超越我們的目標方面做得非常出色。我想表彰整個組織在軟宏觀環境中完美執行。第二季度，我們創下了公司歷史上最高的季度淨銷售額和調整後 EBITDA 記錄。

Adjusted EBITDA margins increased to 21.5%, and our balance sheet continues to strengthen with net leverage declining for the eighth consecutive quarter to or another record low for Axalta at quarter end. Around the world, we demonstrated our ability to execute well. I believe our success over the last 18 months has been a result of the priority we have placed on improving productivity, making smart commercial decisions and tightly managing capital returns.

調整後的 EBITDA 利潤率增至 21.5%，我們的資產負債表持續增強，淨槓桿率連續第八個季度下降，或艾仕得季末再創歷史新低。在世界各地，我們展現了我們良好的執行能力。我相信，我們過去 18 個月的成功歸功於我們優先提高生產力、做出明智的商業決策和嚴格管理資本回報。

Momentum is building throughout the organization and I'm absolutely proud of the team's accomplishments in the first half of 2024. For the quarter, net sales increased by 4% to $1.35 billion, volumes increased by 5% year over year with positive contributions from all four end markets. Adjusted EBITDA for the second quarter was $291 million, representing a $64 million increase year over year. Adjusted EBITDA margin improved by 400 basis points to 21.5%, largely driven by our material and cost focus. Both segments showed improved profitability year over year.

整個組織正在形成動力，我對團隊在 2024 年上半年的成就感到非常自豪。四個終端市場。第二季調整後 EBITDA 為 2.91 億美元，較去年同期增加 6,400 萬美元。調整後的 EBITDA 利潤率提高了 400 個基點，達到 21.5%，這主要是由我們對材料和成本的關注所推動的。這兩個部門的獲利能力均較去年同期有所提升。

I'm confident in our trajectory, which has led us to again increase our guidance for 2024 adjusted EBITDA, adjusted diluted earnings per share and free cash flow. As I've shared with you, I believe we're just beginning to transform the company and unlock the tremendous potential of our products, technology and organizational capabilities.

我對我們的發展軌跡充滿信心，這促使我們再次提高了 2024 年調整後 EBITDA、調整後稀釋每股盈餘和自由現金流的指導。正如我與您分享的那樣，我相信我們才剛開始對公司進行轉型，並釋放我們產品、技術和組織能力的巨大潛力。

Refinish had an excellent quarter with net sales growing 5% year over year, making this the 14th straight quarter of improved top-line performance. In North America, net sales were up 13% as we continued to grow and win new business. We also benefited from favorable comparison to the second quarter of last year in connection with production constraints associated with our North American ERP implementation.

Refinish 季度表現出色，淨銷售額年增 5%，已是營收業績連續第 14 季改善。在北美，隨著我們不斷發展並贏得新業務，淨銷售額成長了 13%。與去年第二季相比，我們也受惠於與北美 ERP 實施相關的生產限制。

Strategically, a key focus for us remains growth in the premium segment where we believe we can win based on three key factors. First, the productivity of our single-visit application waterborne system. Second, our end to end fully automated color match, that now includes hands-free mixing following the launch of Irus mix. And finally, through a host of digital tools, which is optimizing customer support and real-time productivity monitoring for our body shop customers. Year to date, we have already delivered over 1,200 net body shop wins, and we expect this to be another great year.

從策略上講，我們的重點仍然是高端市場的成長，我們相信我們可以基於三個關鍵因素來獲勝。首先，我們的單次訪問水性系統的生產力。其次，我們的端到端全自動色彩匹配，現在包括在推出 Irus mix 後的免持混音。最後，透過一系列數位工具，為我們的車身修理廠客戶優化客戶支援和即時生產力監控。今年迄今為止，我們已經贏得了 1,200 多個車身修理廠淨勝利，我們預計今年將是另一個偉大的一年。

Expansion in the economy segment is another important pillar for our refinish growth strategy that we outlined in our A Plan. In July, we completed the acquisition of the covert flex group, which manufactures coatings for automotive refinish and aftermarket applications focused on economy customers in North America. The business offers a wide range of coatings as well as aerosols fillers and paint shop accessories.

經濟領域的擴張是我們在 A 計畫中概述的修補漆成長策略的另一個重要支柱。 7 月，我們完成了對 covert flex 集團的收購，該集團生產汽車修補漆和售後市場應用的塗料，專注於北美的經濟型客戶。該公司提供各種塗料以及氣溶膠填料和塗裝車間配件。

This acquisition also provides us with the brand's, commercial access and manufacturing capabilities to serve the economy segment where we believe we have great potential for growth. I'm excited to welcome the entire CoverFlexx group to the Axalta team. Industrial net sales increased by 2% year over year, driven by increased volume in North American Building Products.

此次收購也為我們提供了品牌、商業管道和製造能力，以服務我們相信具有巨大成長潛力的經濟領域。我很高興歡迎整個 CoverFlexx 團隊加入艾仕得團隊。受北美建築產品銷售增加的推動，工業淨銷售額年增 2%。

The second quarter marked the first year-over-year improvement in net sales for Industrial in six quarters, which we believe is a signal that market activity has bottomed out and is positioned for recovery when global construction improves. Although global industrial demand remains relatively muted, our team has done a stellar job of driving significant year-over-year margin improvement through cost management and portfolio optimization.

第二季標誌著工業淨銷售額六個季度以來首次同比改善，我們認為這是一個訊號，表明市場活動已觸底，並有望在全球建築業改善時復甦。儘管全球工業需求仍然相對疲軟，但我們的團隊在透過成本管理和投資組合優化推動利潤率逐年顯著提高方面表現出色。

Innovative new products such as the cabinet coatings are gaining traction and are part of a clear commercial strategy to prioritize segments and regions where we have strong value proposition and can generate an attractive return.

櫥櫃塗料等創新新產品正在獲得關注，並且是明確商業策略的一部分，該策略優先考慮我們擁有強大價值主張並能產生有吸引力回報的細分市場和地區。

Light vehicle had another strong quarter. Volume growth up 7% year over year significantly outpaced global auto builds with better growth rates versus regional production rates. China was a bright spot for us again, with nearly 30% volume growth. Globally the team is building lasting partnerships with the fastest growing OEMs at attractive margin levels. Based on this, we expect above-market growth to continue.

輕型汽車季度表現強勁。銷量較去年同期成長 7%，明顯超過全球汽車製造量，成長率高於地區生產力。中國再次成為我們的亮點，銷量成長了近 30%。在全球範圍內，該團隊正在以有吸引力的利潤水平與成長最快的原始設備製造商建立持久的合作夥伴關係。基於此，我們預期高於市場的成長將持續。

Following a flat light vehicle build environment in the first half of the year, industry forecasts are now projecting the second half of the year to be approximately 3% to 4% lower year over year with most of the declines in Europe. Commercial vehicle net sales increased by 3% year over year. Volumes benefited from stronger than anticipated class-A production in North America and Lat-Am. We still expect a modest production slowdown in the second half of 2024 before it ramps up in 2025, leading to a strong 2026.

繼上半年輕型汽車製造環境平淡之後，產業預測今年下半年產量將年減約 3% 至 4%，其中大部分下降來自歐洲。商用車淨銷量較去年同期成長3%。銷售量受益於北美和拉丁美洲 A 級產量強於預期。我們仍預計 2024 年下半年產量將小幅放緩，然後在 2025 年產量增加，從而帶來 2026 年的強勁成長。

Let's move to slide 5. In May, we introduced our 2026 A Plan, a multiyear strategy to accelerate performance and transform the company. I expect the five unique elements of the plan will differentiate Axalta in the industry and allow us to achieve new levels of exceptional performance. First, driven by our one Axalta mindset, we are creating a culture that is faster, more effective and more responsive.

讓我們轉到投影片 5。5 月，我們推出了 2026 年 A 計劃，這是一項旨在提高業績和實現公司轉型的多年策略。我預計該計劃的五個獨特要素將使艾仕在業界脫穎而出，並使我們的卓越績效達到新的水平。首先，在艾仕得理念的推動下，我們正在創造一種更快、更有效、更靈敏的文化。

Second is operational excellence. We will continue the journey we have started to control the controllable and drive more efficiencies in corporate, operations and supply chain. We expect these actions to yield approximately $125 million in annualized run rate savings in 2026. Next is driving growth through portfolio optimization with a focus on our core strengths and profitable businesses. Fourth is sustainable innovation, which is creating the world's best products for sustainability, efficiency and color. Examples of this are NextJet and the Irus Mix.

其次是卓越營運。我們將繼續我們已經開始的旅程，控制可控因素並提高企業、營運和供應鏈的效率。我們預計這些行動將在 2026 年帶來約 1.25 億美元的年化運行率節省。第四是永續創新，在永續性、效率和色彩方面創造世界上最好的產品。 NextJet 和 Irus Mix 就是這樣的例子。

And finally, capital allocation, where we plan to focus on investing in the business and returning value to our shareholders. As you can see with our performance in 2023 and the first half of this year, we are well on our way of achieving our target.

最後是資本配置，我們計劃重點投資業務並為股東回報價值。正如您在 2023 年和今年上半年的表現中所看到的，我們正在順利實現我們的目標。

I will now turn the call to Carl, for a more detailed view of our second quarter financial performance.

我現在將致電卡爾，以了解我們第二季度財務業績的更詳細資訊。

Thank you, Chris, and good morning, everyone. Let's turn to slide 6. Second quarter net sales increased by 4% year over year to $1.35 billion, primarily driven by volume growth of 5%, with contributions from all four end markets. Price mix was flat in the second quarter as positive price actions, we're offset by contractual raw material pass-through impact.

謝謝你，克里斯，大家早安。讓我們轉向幻燈片 6。由於積極的價格行為，第二季度的價格組合持平，我們被合約原材料傳遞影響所抵消。

Gross margin improved by 390 basis points year over year to 34%. This improvement was supported by 8% lower variable costs, strong cost management and ERP costs that did not repeat from the second quarter last year. Our procurement team delivered another great quarter with raw materials, energy costs and freight expenses all lower versus the prior year period. We continue to benefit from our productivity programs executed last year, which have generated an attractive return.

毛利率年增 390 個基點至 34%。這項改進得益於 8% 的變動成本降低、強有力的成本管理和 ERP 成本，這些成本都與去年第二季相比沒有重複。我們的採購團隊再次實現了出色的季度業績，原材料、能源成本和運費都低於去年同期。我們繼續受益於去年執行的生產力計劃，這些計劃產生了可觀的回報。

Regarding raws, we remain well supplied except for specialty pigments, where we continued to experience tight supply and long lead times. More broadly, we view most marketed as balanced at this time with the only pockets of inflation in our commodity basket stemming from transitory supply issues, namely in solvents.

就原料而言，除特種顏料外，我們的供應仍然充足，我們的供應持續緊張且交貨時間較長。更廣泛地說，我們認為目前大部分市場處於平衡狀態，我們的商品籃子中唯一的通貨膨脹源於暫時的供應問題，即溶劑問題。

Our forecast of a mid single digit full year benefit from raw material deflation remains unchanged, and we anticipate a stable cost environment in the second half. Operating expenses were roughly flat compared to the second quarter of last year and modestly lower as a percentage of sales. Underscoring our effective cost management efforts aligned with the transformation initiative introduced earlier this year. We still expect to achieve annualized savings of $75 million from these actions by 2026 with $10 million that should be realized this year.

我們對全年因原材料通貨緊縮而受益的預測保持不變，我們預計下半年成本環境將保持穩定。與去年第二季相比，營運費用大致持平，佔銷售額的百分比略有下降。強調我們有效的成本管理工作與今年稍早推出的轉型計畫一致。我們仍預計到 2026 年，這些行動每年可節省 7,500 萬美元，其中今年應實現 1,000 萬美元。

Adjusted EBITDA in the quarter was $291 million, 28% above second quarter of last year. Adjusted diluted earnings per share increased 63% to $0.57, driven by improved earnings and lower interest expense, which more than offset a modest headwind from a higher effective tax rate. A key component of our A Plan is a heightened emphasis on return on invested capital for which we are targeting 15% by 2026.

該季度調整後 EBITDA 為 2.91 億美元，比去年第二季成長 28%。受獲利改善和利息支出下降的推動，調整後攤薄每股收益成長 63%，達到 0.57 美元，足以抵銷有效稅率提高帶來的小幅阻力。我們的 A 計畫的關鍵組成部分是高度重視投資資本回報率，我們的目標是到 2026 年達到 15%。

On a trailing 12-month basis, return on invested capital of 12.7%, representing a 140 basis point improvement compared to last year and highlights good progress towards our goal. Overall, we delivered exceptional results across all of our businesses, which is due to the incredible talent and dedication of our one Axalta team.

在過去 12 個月的基礎上，投資資本回報率為 12.7%，比去年提高了 140 個基點，凸顯了我們在實現目標方面取得的良好進展。整體而言，我們所有業務都取得了卓越的成果，這要歸功於我們艾仕得團隊令人難以置信的才華和奉獻精神。

Moving to slide 7. Performance Coatings second quarter net sales increased 4% year over year to $887 million. Refinish net sales were up 5% year over year to $546 million, supported by strong volume growth in North America and a solid contribution from the André Koch acquisition. Industrial net sales increased 2% year over year to $341 million. The team continues to improve margins despite a softer macro economic environment through accretive new wins and the deprioritization of lower-margin business. In fact, we expect to be on track to expand industrial margins by over 300 basis points from last year. Overall, we believe this strategy positions us for considerable upside when global demand improves.

轉到投影片 7。由於北美銷售的強勁成長以及收購 André Koch 的強勁貢獻，修補漆淨銷售額年增 5%，達到 5.46 億美元。工業淨銷售額年增 2%，達到 3.41 億美元。儘管宏觀經濟環境疲軟，但該團隊透過增加新的勝利和降低利潤率較低的業務的優先順序，繼續提高利潤率。事實上，我們預計工業利潤率將較去年擴大 300 個基點以上。整體而言，我們相信，當全球需求改善時，這項策略將使我們獲得相當大的上漲空間。

Performance Coatings adjusted EBITDA increased 22% year over year to $223 million. Adjusted EBITDA margin increased by 380 basis points, primarily driven by lower variable costs, increased volume and strong cost control.

高性能塗料調整後 EBITDA 年成長 22%，達到 2.23 億美元。調整後的 EBITDA 利潤率成長了 380 個基點，主要是由於可變成本降低、產量增加和強有力的成本控制。

Let's move to Mobility Coatings results on slide 8. Mobility Coatings net sales increased 6% year over year to $464 million, with growth in both end markets. Light vehicle volumes were strong in the quarter outpacing auto production growth rates in all regions, particularly in China. Commercial vehicle volumes showed improvement due to better than expected Class 8 production in North America and Latin America.

讓我們來看看投影片 8 上的流動塗料業績。本季輕型車銷量強勁，超過了所有地區（尤其是中國）的汽車產量成長率。由於北美和拉丁美洲的 8 級汽車產量優於預期，商用車銷量有所改善。

Mobility Coatings adjusted EBITDA improved by 50% year over year to $68 million. Adjusted EBITDA margin expanded by 440 basis points to 14.8% with strong improvement in light vehicle, primarily driven by lower variable costs, growth in the China market and strong cost management initiatives.

行動塗料調整後 EBITDA 年增 50%，達到 6,800 萬美元。調整後的 EBITDA 利潤率擴大了 440 個基點，達到 14.8%，輕型汽車業務強勁改善，這主要是由於可變成本降低、中國市場增長以及強有力的成本管理舉措所推動。

Turning to Slide 9. We ended the second quarter with over $1.4 billion in total liquidity. Our cash balance of $840 million at quarter end includes a $185 million draw on our revolving credit facility to finance the acquisition of cover Flex, which closed in early July. From a capital allocation standpoint, we intend to prioritize repayment of the revolver as we generate free cash flow for the remainder of the year. And to that fact, we have already repaid $50 million to date.

轉向投影片 9。截至季末，我們的現金餘額為 8.4 億美元，其中包括從循環信貸額度中提取的 1.85 億美元，用於為收購 cover Flex 提供資金，該收購已於 7 月初完成。從資本配置的角度來看，我們打算優先償還左輪手槍，因為我們將在今年剩餘時間內產生自由現金流。事實上，迄今為止我們已經償還了 5000 萬美元。

During the quarter, we increased our capacity on a revolving credit facility from $550 million to $800 million and extended the maturity date to 2029. Additionally, we repurchased $50 million of Axalta shares in the quarter. We see strong value in our equity and expect to remain a programmatic buyer going forward.

在本季度，我們將循環信貸額度從 5.5 億美元增加到 8 億美元，並將到期日延長至 2029 年。我們看到我們的股權具有強大的價值，並預計未來仍將是程序化買家。

Total net leverage at quarter end was a company record of 2.6 times and a full turn below the second quarter of last year. We expect to end the year at or better than 2.5 times inclusive of the recent acquisition. During the next three years, we believe we can drive over $2 billion of cumulative operating cash flow. This will provide us with an opportunity to supplement value creation through share repurchases and accretive M&A. We also expect to further reduce our gross debt balance as we target interest expense savings of $30 million by 2026.

季度末的總淨槓桿率為公司歷史最高水準的 2.6 倍，比去年第二季低了整整一倍。我們預計今年年底的本益比將達到或優於 2.5 倍（包括最近的收購）。我們相信，在未來三年內，我們可以推動累計營運現金流超過 20 億美元。這將為我們提供一個機會，透過股票回購和增值併購來補充價值創造。我們也預計將進一步減少總債務餘額，因為我們的目標是到 2026 年節省利息費用 3,000 萬美元。

I will now turn the call back to Chris for an update on our third quarter and full year 2024 financial guidance.

我現在將把電話轉回給 Chris，以了解我們第三季和 2024 年全年財務指引的最新情況。

Thanks, Carl. Let's turn to slide 10. We expect net sales in the third quarter to be flat to up low single digit percentage compared to last year. Refinish should have another good quarter and we expect share gains, pricing and contribution from our acquisition to mitigate impacts from market mix and distributor consolidation.

謝謝，卡爾。讓我們轉向投影片 10。修補漆應該會有另一個好的季度，我們預期收購帶來的股票收益、定價和貢獻將減輕市場組合和經銷商整合的影響。

In Industrial, net sales are expected to be up modestly. Margin growth in industrial will remain our highest priority in the current soft macro environment, Light vehicle net sales are expected to be flat as solid volume growth globally will be partially offset by contractual raw material pass-throughs. We continue to price in both our industrial and mobility business to ensure we are receiving the appropriate value for our products.

在工業領域，淨銷售額預計將小幅成長。在當前疲軟的宏觀環境下，工業利潤成長仍將是我們的首要任務，輕型汽車淨銷量預計將持平，因為全球銷量的穩健成長將被合約原材料轉手部分抵消。我們繼續對工業和行動業務進行定價，以確保我們的產品獲得適當的價值。

Lastly, in commercial vehicle, we anticipate lower sales influenced by the forecasted decline in Class 8 production in North America. Our full year net sales forecast is to grow low single digits compared to last year. Third quarter adjusted EBITDA is projected to increase 5% year over year to $275 million. Third quarter adjusted diluted earnings per share is estimated to increase by roughly 12% to approximately $0.50.

最後，在商用車方面，我們預計由於北美 8 級車產量預計下降，銷量將會下降。我們對全年淨銷售額的預測是比去年低個位數成長。第三季調整後 EBITDA 預計將年增 5%，達到 2.75 億美元。第三季調整後稀釋每股盈餘預計將成長約 12%，達到約 0.50 美元。

Following another solid quarter for Axalta, we have increased our full year guide. Full year 2024 adjusted EBITDA is expected to be approximately $1.09 billion to $1.1 billion, a $30 million increase versus the midpoint of our prior guidance. This translates to an adjusted diluted EPS of $2.05 per share, which is a 30% increase compared to our last year. We have also raised our 2024 free cash flow guidance to a range of $475 million to $500 million, representing a $37 million increase at the midpoint.

繼艾仕得又一個穩定的季度之後，我們增加了全年指南。 2024 年全年調整後 EBITDA 預計約 10.9 億至 11 億美元，比我們先前指引的中位數增加 3,000 萬美元。這意味著調整後的稀釋每股收益為 2.05 美元，比去年增長了 30%。我們也將 2024 年自由現金流指引上調至 4.75 億至 5 億美元之間，中間值增加了 3,700 萬美元。

Overall, 2024 is shaping up to be the highest revenue and the most profitable year Axalta has ever had. While we are pleased with our performance, we believe that we are at the early stages of capturing our full potential. Thank you for joining us today. This concludes our prepared remarks. Operator, please open the lines for Q&A.

整體而言，2024 年將成為艾仕得有史以來收入最高、利潤最高的一年。雖然我們對我們的表現感到滿意，但我們相信我們正處於充分發揮潛力的早期階段。感謝您今天加入我們。我們準備好的演講到此結束。接線員，請開通問答線。

Thank you. (Operator Instructions)

謝謝。 （操作員說明）

Aleksey Yefremov, KeyBanc Capital Market.

Aleksey Yefremov，KeyBanc 資本市場。

Thanks and good morning, everyone. I just wanted to ask you for any color on refinish market volumes and demand in the second quarter and expectations for the second half. And as sort of a follow up to that, you mentioned distributor consolidation. If you could elaborate on that as well.

謝謝大家，早安。我只是想問一下您對第二季修補漆市場銷售和需求以及下半年的預期有何看法。作為後續行動，您提到了經銷商整合。如果你也能詳細說明一下的話。

Sure. Good morning, Aleksey. Yeah, starting off maybe stepping back into Q2, we feel really good about the 4% top line growth, but specifically in refinish, that went up about 5%, really driven by the four elements of the plan, it was focusing on driving more growth in gaining more body shop. So we gained 1,200 body shops to date at 600 in economy and main and 600 in premium.

當然。早安，阿列克謝。是的，從第二季開始，我們對4% 的收入成長感到非常滿意，但特別是在修補漆方面，成長了約5%，這實際上是由計劃的四個要素推動的，它專注於推動更多獲得更多車身修理廠的成長。因此，迄今為止，我們獲得了 1,200 家車身修理廠，其中經濟艙和主力艙 600 家，高級艙 600 家。

And then on top of that, we really expanded into the adjacency space. So it really expanding our share of wallet. And then on top of that, we focused primarily on also on driving and executing and closing the acquisition with CoverFlexx. But beyond that, the André Koch acquisition that we closed last year has been really providing a tailwind where ahead of our deal model.

除此之外，我們也真正擴展到了鄰接空間。所以它確實擴大了我們錢包的份額。除此之外，我們主要關注推動、執行和完成對 CoverFlexx 的收購。但除此之外，我們去年完成的安德烈·科赫收購確實為我們的交易模式提供了推動力。

And finally, our retail stores in Europe have been driving -- doing great in terms of a growth strategy. So four -- all four elements of the plan have been really driving the growth story. The market I would say has been flat and you can -- as I'm sure you have heard, but the team's done just done a stellar job of driving the growth elements.

最後，我們在歐洲的零售店一直在推動成長策略方面做得很好。因此，該計劃的所有四個要素都真正推動了成長故事。我想說的是，市場一直持平，你可以——我相信你已經聽說過，但團隊在推動成長要素方面做得非常出色。

If I look at Q3, I would say what we are seeing is a market that is get a little bit more stable or soft. We see a little bit of softness in Europe, more stable market in North America. North America is been driven by some distributor consolidation as I have said.

如果我看看第三季度，我會說我們看到的是一個市場變得更加穩定或疲軟。我們看到歐洲市場有些疲軟，而北美市場則更加穩定。正如我所說，北美是由一些經銷商整合所推動的。

In Europe, we see a little bit of destocking, but all in all, we still believe that we're going to have continued growth even in Q3 because with all the elements of the plan are driving what we see as low single-digit growth even in Q3 with the softer market. And the overall dynamics for the business still show, I would say, long term growth. So from our perspective, we are seeing that 2% to 3% organic growth story, still sticking strong for us as we look at the full year.

在歐洲，我們看到了一點去庫存，但總而言之，我們仍然相信即使在第三季度我們也將持續增長，因為該計劃的所有要素都在推動我們認為的低個位數增長即使在市場疲軟的第三季。我想說，該業務的整體動態仍顯示出長期成長。因此，從我們的角度來看，我們看到 2% 至 3% 的有機成長故事，在我們展望全年時仍然強勁。

Thanks Chris. And the second question, could you tried to bridge EBITDA sequentially? Based on your guidance, you're looking at about $15 million EBITDA decline. So what are the components in terms of seasonality, the price indexing, auto OEM, et cetera?

謝謝克里斯。第二個問題，你能嘗試依序橋接 EBITDA 嗎？根據您的指導，您預計 EBITDA 會減少約 1500 萬美元。那麼季節性、價格指數、汽車原始設備製造商等方面的組成部分是什麼？

Yeah. Alexia, this is Carl. As we look at the Q3 guide compared to Q2, it's really I would just focus on the top line. So if you think about revenue, we expect it to be down sequentially by around $30 million to $35 million. And it would really just be essentially a little the downside conversion that you would normally expect that would explain most of that and there's a little bit of mix as well that kind of gets you down to that $275 million EBITDA guide for Q3.

是的。亞歷克西婭，這是卡爾。當我們將第三季指南與第二季進行比較時，我實際上只會關注營收。因此，如果你考慮一下收入，我們預計它會連續下降約 3,000 萬至 3,500 萬美元。實際上，這實際上只是您通常期望的一點點下行轉換，這可以解釋大部分情況，而且還有一些混合因素，這會讓您得出第三季度 2.75 億美元的 EBITDA 指南。

Maybe just adding on Carl's point. The one thing is if you look at our second half, you'll notice that commercial vehicle is actually down about what we are forecasting is down 20%, and that is one of our strongest businesses. And it kind of shows you that the margin stabilization that we've built into the business, which essentially means that our across the other three businesses were really performing strong as we look at the back half.

也許只是補充卡爾的觀點。有一件事是，如果你看看我們的下半年，你會發現商用車實際上下降了，我們預測下降了 20%，而這是我們最強勁的業務之一。這向您展示了我們在業務中建立的利潤率穩定性，這本質上意味著我們的其他三項業務在我們下半年的表現確實強勁。

Thanks a lot.

多謝。

Thank you.

謝謝。

John McNulty, BMO Capital Markets.

約翰·麥克納爾蒂 (John McNulty)，BMO 資本市場部。

Yeah. Good morning, thanks for taking my question. So light vehicle, it sounds like you're going to be able to hold in pretty well against what at least the consultants are looking at as down about mid-single digits. I guess, can you speak to how much pricing pressure you're having and how that kind of offsets some of the wins that you're seeing and the volumes attributable to that?

是的。早安，感謝您提出我的問題。如此輕巧的車輛，聽起來你將能夠很好地抵抗至少顧問認為的中個位數的情況。我想，您能否談談您面臨的定價壓力有多大，以及這種壓力如何抵消您所看到的一些勝利以及由此帶來的銷售？

Well, maybe I'll start off and I'll hand it over to Carl. But as I look at it, starting off at the beginning of the year, John, what we did was we provided a forecast of 89 million bills I would say that's trended up. And right now it's come back down. But overall, it's in line with what we forecasted for the full year in terms of bills. But our story in terms of, again in even in mobility is really about growth and it's about profitable growth.

好吧，也許我會開始，然後把它交給卡爾。但據我觀察，約翰，從年初開始，我們所做的是提供了 8900 萬張帳單的預測，我想說這是趨勢上升的。現在它又回來了。但總體而言，這與我們對全年帳單的預測相符。但我們的故事，甚至在移動性方面，實際上都是關於成長，而且是關於獲利成長。

If you look at the last quarter, we're running at about -- we just gotten to almost 15 points of margin. And it's, -- I truly credit the team in terms of what we have accomplished, it's actually eight quarters of growth. If I go back to last quarter, I would say that the market was about flat to slightly down and we were able to show 7% growth in the quarter. And it's really around two regions that were really driving significant incremental growth, one being China and the second one being Lat-Am.

如果你看看上個季度，我們的利潤率大約是——我們剛剛達到了近 15 個百分點。就我們所取得的成就而言，我確實對團隊表示信任，實際上是八個季度的成長。如果我回到上個季度，我會說市場基本持平甚至略有下降，我們在本季度實現了 7% 的成長。事實上，有兩個地區真正推動了顯著的增量成長，一是中國，二是拉丁美洲。

Again in Lat-Am, we were up double over double digits. And in China, we were up almost 30%. And the incremental growth is coming in that accretive pricing, and that's really offsetting a lot of the weakness that you see in the marketplace. And for us at this point, all the new business is coming in at greater pricing. And contractually, I would say where we feel that we're in a good place. There is a bit of pricing pressure specific to Europe, but the teams are managing that as we go forward.

在拉丁美洲，我們的漲幅再次超過兩位數。在中國，我們成長了近 30%。增量成長來自於增值定價，這確實抵消了您在市場上看到的許多弱點。對我們來說，目前所有新業務都將以更高的價格進入。根據合同，我會說我們覺得我們處於一個好的位置。歐洲特有的定價壓力有點大，但隨著我們的前進，團隊正在應對這種壓力。

Got it. Okay. No, that's really helpful color. And then just a question on the cost initiatives. I think some of the $75 million initiative, about $10 million of it's supposed to hit this year, I believe. I assume that's mostly back-end loaded or back half loaded. Is that fair or can you help us to think about how that flows through throughout the year?

知道了。好的。不，那是非常有用的顏色。然後是關於成本計劃的問題。我認為，7500 萬美元的計劃中的一部分，其中大約 1000 萬美元應該在今年實現。我認為這主要是後端加載或後半加載。這樣公平嗎？

Yes, John, it's been flowing through about pretty equally since we announced the initiative back in the beginning of the first quarter. So that's kind of the expectations it's been embedded in our guide, really all along for this year. And as we think forward into 2025, even we should probably be somewhere in between the $10 million in the $75 million as you think from a modeling perspective. And then when we get into '26, we'll get the full run rate of that $75 million.

是的，約翰，自從我們在第一季初宣布該計劃以來，它的流動性幾乎是平等的。這就是我們的指南中所包含的期望，實際上今年一直如此。當我們展望 2025 年時，從建模的角度來看，我們的收入也可能在 1000 萬美元到 7500 萬美元之間。然後當我們進入 26 年時，我們將獲得這 7500 萬美元的全部運行率。

Got it. Thanks very much for the color.

知道了。非常感謝你的顏色。

Thanks, John.

謝謝，約翰。

Chris Parkinson, Wolfe Research.

克里斯帕金森，沃爾夫研究中心。

Great. Thank you so much. You did pretty well in industrial the quarter despite a choppy macro environment. And it's also our understanding that you've been divesting some of the lower margin businesses in terms of your rationalization plans. Can you just give us a quick update on where you stand with those initiatives and how we should begin to think about them for '25 onwards? Thank you.

偉大的。太感謝了。儘管宏觀環境動盪，但本季工業表現相當不錯。據我們了解，您一直在根據合理化計劃剝離一些利潤率較低的業務。您能否向我們簡要介紹一下您對這些舉措的立場以及我們應該如何開始考慮 25 年後的這些舉措？謝謝。

Yeah. Thanks, Chris. Really proud of what the team's been able to accomplish. If I looked at Q1 to Q2 flow, the largest improvement in margin across our four businesses were actually in our industrial business. The teams not only done a great job of improving margin, but they've also essentially grown sales. If I look at what they've done in Q3, as to your point about a soft macro environment, we're seeing market in our sales volume pick up by 2%.

是的。謝謝，克里斯。為團隊所取得的成就感到非常自豪。如果我看一下第一季到第二季的流程，我們四項業務的利潤率改善最大的實際上是我們的工業業務。這些團隊不僅在提高利潤方面做得很好，而且還大幅提高了銷售額。如果我看看他們在第三季所做的事情，關於您關於疲軟宏觀環境的觀點，我們看到市場銷售成長了 2%。

So the team is just doing a stellar job and it's primarily as we started this whole process over a year and a half ago, the focus was really earning the right to grow. I think the Shelley, who lead the team had a focus around less shrink to get to the right spot and earned the right to grow. And I would say we're certainly executing down that plan.

因此，團隊做得非常出色，這主要是因為我們在一年半前開始了整個過程，重點是真正贏得成長的權利。我認為領導團隊的雪萊專注於減少收縮，以到達正確的位置並贏得成長的權利。我想說我們肯定會執行該計劃。

And so whatever we do, we certainly -- we got out of certain customer agreements as well as certain businesses, low profitable powder businesses that just didn't make sense in the portfolio. And we were able to consolidate and come to a point that we believe that we are in the markets that we can get value from our customer -- we provide value for our customers and obviously get the right level of pricing to equate with that.

因此，無論我們做什麼，我們當然會退出某些客戶協議以及某些業務、低利潤的粉末業務，這些業務在投資組合中沒有意義。我們能夠進行整合，並達到這樣的程度：我們相信我們所處的市場可以從客戶那裡獲得價值——我們為客戶提供價值，並且顯然獲得了與之相匹配的正確定價水平。

The thing that I'm very proud of the team with is at the levels of margin that we're getting to that at this business, any sign that we see an improvement in, let's call it, construction or residential in the future. Because if you look at our performance last last quarter, I mentioned one of the areas that we really grew in is in the building products business. I believe we've gotten the conversion margin at a good point and our SG&A at a great point that we can really convert on the upside of the sales when we do see some change or some upside on the residential markets or the construction markets going forward.

我為團隊感到非常自豪的是我們在這項業務中所達到的利潤水平，任何跡象表明我們看到未來建築或住宅方面的改善。因為如果你看看我們上個季度的表現，我提到我們真正成長的領域之一是建築產品業務。我相信，我們的轉換利潤率已經達到了一個很好的水平，SG&A也達到了一個很好的水平，當我們確實看到住宅市場或建築市場未來出現一些變化或一些上升趨勢時，我們真的可以在銷售的上升趨勢上進行轉換。

Got it. And just a quick follow-up. Just going back to your remarks about the organic growth in refinish, there's been a lot of interesting dynamics. On the one hand, we can all track collision claims. On the other hand, when you look at reimbursement rates from insurance companies, a national tech shortage in terms of what your customers are facing.

知道了。只是快速跟進。回到您關於修補漆有機成長的言論，出現了很多有趣的動態。一方面，我們都可以追蹤碰撞索賠。另一方面，當您查看保險公司的報銷率時，您會發現您的客戶面臨的國家技術短缺。

Is this -- are those narratives coming up in your negotiations on a kind of a day-to-day basis in terms of potential Irus penetration and the value added of your product portfolio? Or is that more like a sell-side hypothetical argument. I'm just trying to understand how much potential benefit you've already had or what you will have from what's going on the ultimate industry you're selling into. Thank you.

這些敘述是否會在日常談判中出現，涉及 Irus 的潛在滲透率和產品組合的附加價值？或者這更像是賣方的假設論點。我只是想了解您已經獲得了多少潛在利益，或者您將從您所銷售的最終行業的發展中獲得什麼。謝謝。

That's an absolutely a great question, Chris. It is Axalta's strength if you really put it in perspective in the refinish business, is we lead in the premium segment. And the premium segment is all about efficiency and cost. And to your point with where costs are going up from a perspective of labor and the costs in a paint shop, this is a huge impact as well as the impact on the insurance claim. So anything that we can provide in productivity and cost efficiency certainly provides a positive and that's the best part of the Irus Mix.

這絕對是一個很好的問題，克里斯。如果你真正從修補漆業務的角度來看，這就是艾仕得的優勢，我們在高端市場處於領先地位。高端市場的關鍵在於效率和成本。從勞動力和噴漆車間成本的角度來看，成本正在上升，這是一個巨大的影響，也對保險索賠產生了影響。因此，我們在生產力和成本效率方面所能提供的一切肯定會帶來正面的影響，這是 Irus Mix 的最佳部分。

I mean that -- right now we have requests for over 700 Irus Mix, we have 300 that will install this this year. Our objective is to get about 1,000 by the end of next year and provide -- the efficiency it provides between 8 to 12 hours a week in our body shop, depending on the number of the car going through it certainly provides a benefit. But it’s just not only that. It’s whether it’s our waterborne solution that provides a single coat application or it’s our digital tools or it’s the Irus Mix.

我的意思是，目前我們收到了超過 700 台 Irus Mix 的請求，今年我們將安裝 300 台。我們的目標是到明年年底獲得約 1,000 台，並提供——它在我們的車身修理廠每週提供 8 到 12 小時的效率，具體取決於經過它的汽車數量，這肯定會帶來好處。但不僅如此。這取決於我們提供單層塗層的水性解決方案，還是我們的數位工具或 Irus Mix。

There is a whole host of tools that provides that efficiency, and that’s certainly what’s helping us win. As I said, if I look at the first half of the year, half of the wins are in the premium segment. And if you think about the fact that we already have 40% market share there, it just tells you about the strength of the portfolio of the products that we provide our customers.

有大量工具可以提供這種效率，而這無疑是幫助我們獲勝的原因。正如我所說，如果我看看今年上半年，一半的勝利來自高端市場。如果您考慮一下我們已經在那裡擁有 40% 的市場份額這一事實，您就會知道我們為客戶提供的產品組合的實力。

Thank you, for the color.

謝謝你，給個顏色。

You're welcome.

不客氣。

Mike Leithead, Barclays.

麥克萊特黑德，巴克萊銀行。

Great. Thanks. Good morning, guys.

偉大的。謝謝。早安，夥計們。

Good morning.

早安.

Just one for -- I wanted to ask around CoverFlexx a couple of things there. Can you just help us understand how much you're assuming it contributes in the back half of this year, just in terms of revenue and EBITDA and then I know you've given us how the business has done in 2023. But just directionally, can you talk about how it's done so far year to date?

只是一個——我想向 CoverFlexx 詢問一些事情。您能否幫助我們了解您假設該公司在今年下半年的貢獻有多大，僅就收入和 EBITDA 而言，然後我知道您已經向我們提供了該業務在 2023 年的表現。您能談談今年迄今的進展嗎？

Yeah. Mike, as you look at that, what's embedded in the forecast for us, we're assuming around $40 million of revenue that would come in the second half from CopperFlexx. And while we don't give exact kind of margin details on it, I would say if you look at the performance coatings overall margin for the quarter, it's probably a pretty good proxy about how to think of that the impact for us was for the second half.

是的。 Mike，正如您所看到的，我們的預測中包含了哪些內容，我們假設下半年 CopperFlexx 的收入約為 4000 萬美元。雖然我們沒有給出確切的利潤率細節，但我想說，如果你看看本季高性能塗料的整體利潤率，它可能是一個很好的代表，說明如何考慮對我們的影響是對下半場。

And as we look forward with that business, I think we're very excited with really even in the first month as far as the ownership and some of the opportunities that we're seeing, not only commercially, but as well as with -- on the cost side as well. So I think we're off to a very good start, the expectation is -- this is really going to help jump-start a lot of our activities is really growing that in the economy, our space here as we go forward.

當我們展望這項業務時，我認為即使在第一個月，我們也對所有權和我們看到的一些機會感到非常興奮，不僅是商業上的，而且還有——在成本方面也是如此。所以我認為我們有了一個非常好的開始，我們的期望是——這確實將有助於啟動我們的許多活動，在經濟中真正成長，我們的空間在我們前進的過程中。

Great. Thank you so much.

偉大的。太感謝了。

Thanks, Mike.

謝謝，麥克。

David Begleiter, Deutsche Bank.

大衛‧貝格萊特，德意志銀行。

This is David Huang here for Dave. I guess first, maybe just follow-up on industrial. What's the scope of the deal price prioritization of low margin businesses, I guess as a percentage of your total sales? And then if I look at the portfolio today, what's the margin gap between these businesses? You're trying to walk away from versus your highest margin?

我是戴維‧黃 (David Huang)。我想首先，也許只是工業的後續行動。我猜低利潤業務的交易價格優先順序佔你們總銷售額的百分比是多少？然後，如果我看看今天的投資組合，這些業務之間的利潤差距是多少？您正試圖放棄最高利潤嗎？

Yeah. As we looked at the industrial business, and as we outlined at our strategy today, there was above about maybe 10% of the overall business that we were looking at where we could potentially make some changes whether that was too and exit certain some of those customers as well as price for it. So that's the journey that the team has been on. I think to date as Chris alluded to, the execution has gone extremely well.

是的。當我們審視工業業務時，正如我們在今天的策略中概述的那樣，我們正在考慮的整體業務中，有大約10% 以上是我們可以做出一些改變的，無論是不是也如此，並退出其中的某些業務。這就是團隊一直在走的旅程。我認為，正如克里斯所提到的，到目前為止，執行進展得非常順利。

And you can overall -- this is the first quarter that we are actually inflecting positively on the top line in industrial and you're seeing that you're getting a benefit from that, but you're also getting that benefit from and some of these deprioritization. And as I referenced in my prepared remarks, we're expecting the industrial margin profile and performance increase over 300 basis points from last year. So a really, really good start up from the team, how we believe there's definitely more to go and we'll continue to execute on that as we get into '25 and beyond.

總體而言，這是我們實際上在工業收入方面取得積極進展的第一季度，您會看到您從中受益，但您也從中獲得了一些好處這些取消優先級。正如我在準備好的演講中提到的，我們預計工業利潤率和業績將比去年增長 300 個基點以上。因此，團隊的起步非常非常好，我們相信肯定還有更多的工作要做，當我們進入 25 年及以後時，我們將繼續執行這一點。

And then just get just on Performance Coatings Q3 EBITDA margin, I guess given the momentum mean refinishing group and industrial, do you expect EBITDA margin to be up sequentially versus Q2?

然後看看高性能塗料第三季的 EBITDA 利潤率，我想考慮到修補漆集團和工業的勢頭，您預計 EBITDA 利潤率會比第二季度連續上升嗎？

I would say, again, I mean, if you look at it in totality from a margin perspective in total, when you kind of run the quick math, the margins will be down a little bit from a consolidated basis sequentially from Q2 to Q3. There's some seasonality kind of components that drive that. There's some mix kind of considerations as well and that type of differences also would be attributable to the Performance Coatings segment as well as we get into Q3.

我想說，我的意思是，如果你從整體利潤率的角度來看，當你進行快速數學計算時，從第二季度到第三季度，利潤率將比綜合基礎略有下降。有一些季節性因素推動了這一趨勢。還有一些混合類型的考慮因素，這種類型的差異也可歸因於高性能塗料領域以及我們進入第三季的情況。

Okay. Thank you.

好的。謝謝。

Thank you.

謝謝。

Ghansham Panjabi, Baird.

甘沙姆‧潘嘉比 (Ghansham Panjabi)，貝爾德 (Baird)。

Hi, good morning, everyone. This is Matt Krueger sitting in for Ghansham. So given that you cited lower variable costs in the release and the presentation, and you're doing a nice job of offsetting labor and other inflation with self-help initiatives. What are your expectations for price cost as we move through the remainder of the year? What is the benefit been through 2Q or on a year to date basis? And then how does that compare to what we should expect for the second half?

嗨，大家早安。這是馬特·克魯格（Matt Krueger）代替甘沙姆（Ghansham）。因此，鑑於您在發布和演示中提到了較低的可變成本，並且您在透過自助舉措抵消勞動力和其他通貨膨脹方面做得很好。今年剩餘時間裡，您對價格成本有何預期？第二季或年初至今的收益是什麼？那麼這與我們對下半年的預期相比如何呢？

Yeah. I mean, thanks for the question. As we look at this that you kind of that price kind of cost differential, I think. We've done a lot of work if you kind of look at by business. So obviously, within the refinish business for us, that's kind of something that we're pricing, generally comes in, it's pretty pretty steady every single year. There's always some mix components that can kind of move around as you kind of get into the quarter by quarter look as well.

是的。我的意思是，謝謝你的提問。當我們看到這個時，我認為你有點那種價格的成本差異。如果你從業務角度來看的話，我們已經做了很多工作。顯然，在我們的修補漆業務中，這是我們定價的一部分，通常每年都會相當穩定。當你進入逐季度的外觀時，總是會有一些混合組件可以移動。

As Chris also outlined, the industrial team has done a very good job as far as also managing of that environment. And some of the offset to that, of course, are what we're seeing with -- it's a mix of higher inflation kind of coming in and some labor. So overall I think we feel it's pretty on neutral as I think about some of that, especially in Performance Coatings business, at least what we're seeing on that.

正如克里斯還概述的那樣，工業團隊在管理該環境方面做得非常好。當然，我們所看到的一些抵消因素是通膨上升和一些勞動力的混合。因此，總的來說，我認為我們認為這是相當中性的，因為我想到了其中的一些，特別是在高性能塗料業務中，至少是我們在這方面看到的。

And I think mobility across the board. The team has done a very good job as far as continuing to get increased prices where we think it's appropriate as well as our that's helping to mitigate some of the impact that we're seeing from the RMI indices that we have in place.

我認為流動性是全面性的。團隊在繼續提高我們認為適當的價格方面做得非常好，這有助於減輕我們從現有 RMI 指數中看到的一些影響。

And so I think there will be a little bit of movement, as we kind of get in the third quarter. But overall, we are looking at this business across the board just from a margin perspective. And as you can see, not only in the results this quarter, but what we expect for the full year overall, we're going to be having a very solid year as it relates to increasing margins well about 200 basis points for the full year across the company.

因此，我認為正如我們在第三季所看到的那樣，將會出現一些變化。但總的來說，我們只是從利潤的角度來全面審視這項業務。正如您所看到的，不僅在本季度的業績中，而且在我們對全年整體的預期中，我們將度過非常穩健的一年，因為這與全年利潤率的提高有關，約為200個基點整個公司。

Maybe just to add a little bit to Carl. Our focus really was about margin stabilization and hitting our -- getting to our 2026 our targets in our A plan. And as you can see, we've accomplished it in Q2. And if you look at the full year, as we work in this macro environment that seems to be soft and somewhat volatile, what we're ensuring that we protect the margin and we drive stability in the margins through even with the changes that we see in raw material through what we are doing, either in pricing or our cost actions, and that's what you'll see it. And you can see that in our back half guidance. That's what you'll see from us going forward.

也許只是為了給卡爾補充一點。我們的重點實際上是穩定利潤率並實現 A 計劃中的 2026 年目標。正如您所看到的，我們在第二季度完成了這一目標。如果你看看全年，當我們在這個似乎疲軟且有些波動的宏觀環境中工作時，我們正在確保保護利潤率，並通過我們看到的變化來推動利潤率的穩定通過我們正在做的事情，無論是定價還是我們的成本行動，在原材料方面，這就是您將看到的。您可以在我們的後半部分指南中看到這一點。這就是您將從我們身上看到的未來​​。

Got it. That's helpful. And then just digging into the cost savings initiatives a little bit deeper. Can you talk about which businesses you expect to benefit most from the cost savings initiatives through 2026? And then where's the greatest opportunity remaining at this point? Have you -- as you've gained momentum in the initiative, have the teams uncovered any further opportunity for future initiatives or iterations?

知道了。這很有幫助。然後更深入地研究成本節約計劃。您能否談談您預計到 2026 年哪些企業將從成本節約計畫中受益最多？那麼此時剩下的最大機會在哪裡呢？當您在該計劃中獲得動力時，您的團隊是否發現了未來計劃或迭代的任何進一步機會？

Yeah. I mean, if we look at in total, as we outlined about $125 million of total savings that we expect to drive as we get through 2026. A very significant amount of that was as it relates to what we're doing with kind of some of the corporate related roles as well. So I think you're going to see that kind of spread across all of the BUs as far as that impact.

是的。我的意思是，如果我們從總體上看，正如我們概述的那樣，我們預計到 2026 年將節省約 1.25 億美元的總成本。 。因此，我認為就這種影響而言，您將看到這種影響遍及所有業務部門。

And then the other two big categories for us as we think about productivity in our network, again, that was -- you will see that benefit in all of our BUs as well because that is a very important our strategic priority that we have as far as driving that type of productivity savings that we kind of model out about $25 billion. And we believe this is the start, I think you should start seeing that increase even more as we kind of gets out in 2027, and beyond.

然後，當我們考慮網路的生產力時，我們的另外兩大類別是——您也會在我們所有的業務部門中看到這種好處，因為這是我們迄今為止非常重要的策略優先事項推動這種類型的生產力節省，我們模擬了約250 億美元。我們相信這只是一個開始，我認為隨著我們在 2027 年及以後退出，您應該開始看到更多增長。

And then on the other big category for us is the optimization as we think about how we move freight around the network, some opportunities with some consolidation of warehouses began that really kind of affects all of the Business Suite business units. I wouldn't say there's one that's more outsized than others as we think about it.

然後，對我們來說，另一個大類別是優化，當我們考慮如何在網路中運輸貨物時，一些倉庫整合的機會開始出現，這確實影響了所有商務套件業務部門。我不會說有一個比其他的更大。

Okay. Great. That's helpful. That's it for me. Thank you.

好的。偉大的。這很有幫助。對我來說就是這樣。謝謝。

Thank you.

謝謝。

Vincent Andrews, Morgan Stanley.

文森安德魯斯，摩根士丹利。

Hey, good morning. This is Steve Haynes on for Vincent. Thanks, for taking my question. Wanted to ask a question on the guide on the EBITDA side of things. I think once you kind of flow through the beat in the second quarter and and maybe $10 million or so from CoverFlexx based on your prior comments, it doesn't really leave a ton of upside for the back half. So I guess why not -- why isn't back half coming up as well? Is there some offset there that might be missing in that bridge? Or is it just kind of positioned conservatively at this point? Thank you.

嘿，早安。我是文森的史蒂夫·海恩斯。謝謝你回答我的問題。想詢問有關 EBITDA 方面指南的問題。我認為，一旦你經歷了第二季度的節奏，並且根據你之前的評論，CoverFlexx 可能會提供 1000 萬美元左右的資金，這並不會為後半部分留下太多的上行空間。所以我想為什麼不行——為什麼後半部不出現？那座橋是否有一些可能缺少的偏移？或者目前只是採取保守的立場？謝謝。

Yeah. I mean, if you look at what we've kind of put forth, maybe I'd start with the quarter that we just haven't really the first six months of the year. So we've delivered about $550 million of EBITDA for six months of 2024. If I can compare it to last year, that same number was $440 million. So $110 million step-up in, we're kind of running especially at this in this type of environment around that $275 billion of EBITDA, which is kind of what you're seeing in the guide.

是的。我的意思是，如果你看看我們提出的內容，也許我會從我們還沒有真正今年前六個月的季度開始。因此，我們在 2024 年的六個月內實現了約 5.5 億美元的 EBITDA。因此，我們投入了 1.1 億美元，尤其是在這種環境下，EBITDA 約為 2750 億美元，這就是您在指南中看到的內容。

And so I think actually, we're very excited about this type of performance. You could see at the top end of our range, we kind of have it penciled in at $1.1 billion, which year on year would be about $150 million increase in overall EBITDA. And so and then importantly, if I think about just kind of what we're doing with earnings per share, great quarter up 63% this year. And then for the full year based off of $2.5, we're going to be up over 30% year on year. So I wouldn't say, necessarily conservative. I think this just speaks to the execution that we continue to focus on, and we're excited about where we're at.

所以我認為實際上我們對這種類型的表演感到非常興奮。您可以看到，在我們範圍的上限，我們將其預測為 11 億美元，整體 EBITDA 年比將增加約 1.5 億美元。因此，重要的是，如果我考慮我們在每股收益方面所做的事情，今年季度增長了 63%。然後，以 2.5 美元為基礎，全年我們的收入將年增 30% 以上。所以我不會說，一定是保守的。我認為這只是說明了我們繼續關注的執行力，我們對我們所處的位置感到興奮。

And maybe just to add to that, Steve, from a sales standpoint, as you know, in the back half of the year, most of the forecast in most of our segments has volumes coming down and coming down 3% to 4%, we're actually showing our sales growth of mid low single digits. So well, essentially offsetting that and growing some so to drive that level of growth in the back half is what we need to do to be. And we're maintaining margins, as Carl pointed out, through the back half. So we're actually quite comfortable with the guide that we have out there.

也許只是補充一點，史蒂夫，從銷售的角度來看，正如你所知，在今年下半年，我們大多數細分市場的大部分預測銷量都會下降，下降 3% 到 4%，我們實際上顯示我們的銷售額成長為中低個位數。那麼，我們需要做的就是從根本上抵消這一影響並增長一些，以推動後半段的增長水平。正如卡爾指出的那樣，我們在後半段保持著利潤。所以我們實際上對現有的指南非常滿意。

Okay. Thank you.

好的。謝謝。

Thank you, [Steven].

謝謝你，[史蒂文]。

Josh Spector, UBS.

喬許‧斯佩克特，瑞銀集團。

Yeah. Hey, good morning. Maybe a similar question on kind of the EBITDA cadence here, but maybe more focused on fourth quarter. So I mean, typically seasonally, that's down a little bit more than I think, implied in your guide. I guess, is that the cost savings stepping off or is there some other assumption you would say that drives that?

是的。嘿，早安。也許這裡有關於 EBITDA 節奏的類似問題，但可能更關注第四季度。所以我的意思是，通常是季節性的，下降幅度比我想像的要多一些，正如你的指南中所暗示的那樣。我想，是成本節省逐漸消失還是您認為有其他一些假設推動了這一點？

I think as we look at it, there's a little bit of a piece of some cost savings that we kind of expect to kind of continue on, as well as when -- as you saw in the what we're kind of guiding to implicitly for Q3 that what does imply that fourth quarter revenue steps up a little bit on the upfront from where that was. So we have that conversion on that incremental revenue that we're also we're assuming in the overall guide. But yeah, I think it's -- you also have to remember we've kind of we're also having with cover flex kind of coming in and that's also helping on the overall top line as well as we think about the rest of this year.

我認為，當我們審視它時，我們希望能夠繼續節省一些成本，以及何時——正如您在我們隱含的指導中看到的那樣對於第三季度來說，這確實意味著第四季度的收入比之前增加。因此，我們對增量收入進行了轉換，我們也在總體指南中假設了這一點。但是，是的，我認為 - 你還必須記住，我們也有類似的封面柔性的進來，這也有助於整體營收以及我們對今年剩餘時間的考慮。

Thanks. And if I could just ask a quick follow-up just on buybacks, where you talk about being programmatic, that $50 million you did in 2Q, is that the programmatic level or can you talk about what's programmatic versus opportunistic and what level we should be expecting? Thanks.

謝謝。如果我可以問一下關於回購的快速跟進，你談到的是程序化，你在第二季度所做的5000 萬美元就是程序化水平，或者你能談談什麼是程序化與機會主義以及我們該達到什麼水平期待？謝謝。

Yeah, I think we're going to execute on the the authority that we have from the Board, which saw we did announce last quarter of $700 million. So I think we did $50 million kind of right out of the gate. As I said in my prepared remarks I would say short term, we're also looking at paying back the revolver draw that we did our fund and finance the cover and cover flex acquisitions. We paid $50 million of that already, but as we kind of go forward, we will without putting a dollar amount on it. Our expectation is to continue to be a buyer of our stock as we kind of go forward and be able to exercise and really used up to $700 million over the next several years.

是的，我認為我們將根據董事會的授權執行，我們上季確實宣布了 7 億美元。所以我認為我們一開始就賺了 5000 萬美元。正如我在準備好的演講中所說，我想說的是短期而言，我們也在考慮償還我們的基金和為 cover 和 cover flex 收購提供的左輪手槍抽獎。我們已經支付了其中 5000 萬美元，但隨著我們的推進，我們將不再投入任何金額。我們的期望是繼續成為我們股票的買家，因為我們能夠繼續前進並能夠在未來幾年內實際使用高達 7 億美元。

Thank you.

謝謝。

Mike Harrison, Seaport Research Partners.

麥克·哈里森，海港研究夥伴。

Hi, good morning. A couple of questions on the commercial vehicle business. So first of all, it sounds like this quarter was a little bit stronger than you expected, but it sounds like are you expecting that to weaken in the second half and then start to improve again in '25 ahead of the big pre-buy in '26? So I just want to make sure I understand that correctly.

嗨，早安。關於商用車業務的幾個問題。首先，聽起來這個季度比您預期的要強一些，但聽起來您是否預計下半年會減弱，然後在 25 年大規模預購之前再次開始改善'26？所以我只是想確保我理解正確。

And then can you also comment on the opportunity that you see in Asia in the heavy truck business? I think that a lot of production takes place there, but I believe you've been historically pretty focused on North America, is that an opportunity?

那麼您能否評論一下您在亞洲重型卡車業務中看到的機會？我認為很多製作都在那裡進行，但我相信你們歷來都非常關注北美，這是一個機會嗎？

Yeah. So maybe I'll start. Thanks for the question. First you're right in your forecast. So I think what came in stronger than we forecasted was really Class 8 production in North America that -- in Q2, we saw that come in strong with most of a lot of our customers continued to pull at strong rates as we looked at Q2 in North America. And I think the fleets are still pulling trucks. We do see backlog getting spec going down a bit, but overall, the market was stronger.

是的。所以也許我會開始。謝謝你的提問。首先你的預測是正確的。因此，我認為比我們預測更強勁的是北美的 8 級生產——在第二季度，我們看到，我們的大多數客戶繼續以強勁的速度拉動，因為我們在第二季度看到了這一點。北美。我認為車隊仍在拉卡車。我們確實看到積壓的規格有所下降，但總體而言，市場更加強勁。

And again, we're forecasting that market aligned with where our customers are and where the forecasters are to drop down about 20% as we think about the next two quarters. And as you know, with the pre-buy and the emissions change in '27, we do believe that a part of '25 and certainly '26 will be much higher than where we are at this point.

考慮到未來兩個季度，我們再次預測，與我們的客戶所在地和預測者所在地一致的市場將下降約 20%。如您所知，隨著 27 年的預購和排放量變化，我們確實相信 25 年的一部分，當然還有 26 年的排放量將遠高於我們目前的水平。

Another strong market for us was really Lat-Am. Lat-Am, especially on the commercial vehicle side, we're doing a great job there, and I see the team continuing to win new agreements. I look forward to announcing some here in the future. So I think the teams are doing a stellar job here.

對我們來說另一個強大的市場確實是拉丁美洲。拉丁美洲，特別是在商用車方面，我們在那裡做得很好，我看到團隊繼續贏得新協議。我期待著將來在這裡宣布一些內容。所以我認為團隊在這裡做得非常出色。

Specific to the China market, probably one of the reasons you haven't heard us talk much about it is from a margin perspective, it is a little bit tougher to work in that environment. There are certain customers that we are working with, but overall, it's a market that as I've always said, our goal is to ensure that we drive margin stability and we get value for the products that we provide our customers and in that environment, it's just a little bit harder.

具體到中國市場，您沒有聽到我們談論太多的原因之一可能是從利潤角度來看，在那種環境下工作有點困難。我們正在與某些客戶合作，但總的來說，正如我一直所說，這是一個市場，我們的目標是確保我們推動利潤穩定，並為我們為客戶提供的產品以及在該環境中獲得價值，只是稍微困難一點。

All right. And then on the light vehicle business side, you mentioned that the market forecast is for a little bit of a decline in the second half. I'm curious what you've been hearing specifically from your customers about any additional summer downtime or throttling back on production in the second half relative to levels in the first half as maybe some of those customers look to rationalize saw where some of the inventory levels are.

好的。然後在輕型車業務方面，您提到下半年市場預測會略有下降。我很好奇您從客戶那裡聽到的關於夏季額外停工或下半年生產相對於上半年水平的縮減的具體消息，因為也許其中一些客戶希望合理化，因為他們看到了一些庫存的情況水平是。

So specific to North America, I would say our customers are if there are a there's a bit of a, let's call it, inventory building on lots. But specific to our customers, I would say we have got -- I would say, three quarters of them are don't show a significant decline and we actually show a pretty stable market as I think about the customers we deal with in North America.

具體到北美，我想說我們的客戶如果有一點，我們可以稱之為，大量庫存。但具體到我們的客戶，我想說的是，四分之三的客戶並沒有顯著下降，而且當我考慮到我們在北美處理的客戶時，我們實際上表現出一個相當穩定的市場。

We are seeing weakness in Europe and as I think everybody is and specific to that and the interesting thing for us is if I look across the globe in Q3, what is really helping us is the business is winning across pretty much all the three business, all the four regions and the volume that's coming up, that's driving our growth. The volume that's offsetting that is really our growth, the growth story across, I would call it all the regions. It's group really being driven by and way the growth.

我們看到了歐洲的疲軟，我認為每個人都是如此，而且對我們來說有趣的是，如果我在第三季度放眼全球，真正對我們有幫助的是該業務在幾乎所有三個業務中都取得了勝利，所有四個地區以及即將增加的銷售正在推動我們的成長。抵消這一影響的數量實際上是我們的成長，是整個地區的成長故事，我稱之為所有地區。這是一個真正受到成長驅動並推動成長的群體。

Steve Byrne, Bank of America.

史蒂夫伯恩，美國銀行。

Hi. Rock Hoffman on for Steve Byrne. My first question is, given the easier year-over-year volume comparison in 2Q from ERP and implementation related production constraints. Could you give any indications of how volume growth was sequentially in your business versus normal seasonality? And how should we think about that year-over-year volume growth as this a beneficial comparison goes away in 3Q?

你好。羅克霍夫曼替補史蒂夫伯恩。我的第一個問題是，考慮到 ERP 和實施相關的生產限制，第二季的年比產量比較更容易。您能否說明您的業務相對於正常季節性的銷售成長情況如何？由於這種有益的比較在第三季消失，我們該如何看待年比銷售成長？

Well, I would say that the comp percentage is about 2%. There is one element of this that I think I want to make sure that we -- there's an understanding is if you look at the sales that was impacted in North America, we said North America grew by 13%. And that revenue that we lost because of the ERP implementation in Q2 of last year was about $20 million to $30 million.

嗯，我想說補償百分比約 2%。其中有一個因素我想確保我們——有一種理解是，如果你看看北美受到影響的銷售額，我們說北美成長了 13%。去年第二季我們因 ERP 實施而損失的收入約為 2,000 萬至 3,000 萬美元。

And what I'm really impressed with the team is that in that revenue just doesn't sit there and wait for us to show back up and get the teams drove a strong initiative to work with our customers and drive and get back those sales. And I'm really proud of the refinish team for accomplishing that target. It just shows the strength of the products that we provide, the resiliency of the team and really our customers are driving back to come back and working with us. So overall, really pleased with how that turned out.

我對團隊印象最深刻的是，收入不會坐在那裡等待我們回來，讓團隊採取強有力的舉措與客戶合作，推動並收回這些銷售。我為修補漆團隊實現這一目標感到非常自豪。它只是顯示了我們提供的產品的實力、團隊的彈性以及我們的客戶確實正在開車回來與我們合作。總的來說，我對結果非常滿意。

Great. Thanks. And wondering if you could provide any updates to the Irus mixing rollout refinish?

偉大的。謝謝。想知道您是否可以提供 Irus 混合推出修補漆的任何更新？

Yes. Thanks, Rock. That's a great question. I mean, it's going great. We've got 300-plus out there this year. If you talk to Troy, who runs the business, he would say he wishes he could get a 1,000 out there. Our target is to get about 1,000 by the end of next year. The rollout's going good, the customers are -- I've had the opportunity to talk to some customers in Europe last late -- in the quarter and you can really see the interest in the product. And so we've started the rollout in mostly in Europe, and we're starting to get transition also into North America, and the objective is to get up about 1,000 out by the end of next year.

是的。謝謝，搖滾。這是一個很好的問題。我的意思是，一切都很順利。今年我們有 300 多個。如果你和這家公司的經營者特洛伊交談，他會說他希望能得到 1,000 美元。我們的目標是到明年年底達到 1,000 左右。推出進展順利，客戶——我最近有機會與歐洲的一些客戶交談——在本季度，你可以真正看到對該產品的興趣。因此，我們已經開始在歐洲大部分地區進行推廣，也開始向北美過渡，目標是到明年年底推出約 1,000 個。

Great. Thank you.

偉大的。謝謝。

John Roberts, Mizuho Securities.

約翰·羅伯茨，瑞穗證券。

Thank you. I would mind. This is Edlain Rodriguez for John. Chris, just a quick one from me on M&A. I mean you've done a couple of bolt-ons recently. Can you talk about the pipeline for new acquisitions? And are you still seeing opportunities in there?

謝謝。我會介意的。我是約翰的艾德蘭·羅德里格斯。克里斯，我簡單介紹一下併購事宜。我的意思是你最近做了一些補充工作。能談談新收購的管道嗎？您仍然看到其中的機會嗎？

Yeah, thanks for the question. We absolutely are, as we laid out in our A Plan a quarter ago, the idea across the entire business as we pivot, especially since we've seen margin stabilization here, and we're certainly going to prove that out through the back half of the year, we're going to pivot to obviously focus on growth, and we have a $500 million target for growth.

是的，謝謝你的提問。正如我們在一個季度前的計劃中所闡述的那樣，隨著我們的轉型，我們絕對是整個業務的想法，特別是因為我們已經看到這裡的利潤率穩定，並且我們肯定會在下半年證明這一點今年，我們將重點轉向成長，我們的成長目標是5 億美元。

As I look at this year, we've already accomplished about $130 million to $150 million of that. So we should still have $350 million to get over the next two years. And to do that, as we felt positioned in the A Plan, half of it was for through M&A and the other half was through organic growth.

據我觀察，今年我們已經完成了大約 1.3 億至 1.5 億美元的目標。因此，未來兩年我們應該還有 3.5 億美元的資金可供使用。為此，正如我們在 A 計劃中所定位的那樣，其中一半是透過併購，另一半是透過有機成長。

And as I look at the bolt-ons that we were able to do in accretive parts of the business refinish and we've also highlighted that we want to do something in commercial vehicle. I do believe that there are opportunities here and you'll hear more from the teams as we go forward over the next year. But those are the areas that we're highlighting and we want to keep focused on as we go forward.

當我看到我們能夠在商業修補的增值部分中進行的螺栓固定時，我們也強調我們希望在商用車領域做一些事情。我確實相信這裡有機會，隨著我們明年的前進，您會從團隊中聽到更多的消息。但這些是我們正在強調的領域，也是我們希望在前進過程中繼續關注的領域。

Okay. Thank you. That's all I have. Thanks.

好的。謝謝。這就是我所擁有的一切。謝謝。

Kevin McCarthy, Vertical Research Partners.

凱文·麥卡錫，垂直研究夥伴。

Hi. This is Matthew Hettwer on for Kevin McCarthy Just one question for me. I wanted to touch on interest rates given the recent FOMC meeting and looking like a cuts become increasingly likely in September, how do you see lower rates impacting your businesses? And do you have the impact of low rates built into your guidance at all?

你好。我是馬修·赫特沃 (Matthew Hetwer) 為凱文·麥卡錫 (Kevin McCarthy) 發言 我只想問一個問題。鑑於最近的 FOMC 會議，並且看起來 9 月降息的可能性越來越大，我想談談利率，您如何看待較低的利率對您的業務的影響？您的指導中是否考慮了低利率的影響？

So todat we do not have the impact from lower rates in the guide. I think expectations are consensus is moving around a 25 basis point cut in September. I think more importantly, longer term, I think that will be very helpful if there are rate cuts continue as you kind of get into next year where that will be helping the consumer and the consumer across different categories that would affect our business, whether that's in purchasing vehicles, whether that's in our industrial business and housing.

因此，到目前為止，我們還沒有受到指南中較低利率的影響。我認為 9 月的共識是降息 25 個基點左右。我認為更重要的是，從長遠來看，我認為如果進入明年繼續降息，這將非常有幫助，這將幫助消費者和不同類別的消費者，從而影響我們的業務，無論是購買車輛，無論是在我們的工業企業還是住房領域。

I think those would be a little bit of the tailwinds that potentially that could be potentially there if rate cuts come in 2025, that would be material overall. I think for us on our balance sheet from an interest expense perspective, I like our position with about 50% of our debt, which would be on floating rate debt. So we would naturally get a little bit of pickup with when or if rates do begin to decline.

我認為，如果 2025 年降息，這些可能會帶來一些潛在的順風，總體而言，這將是重大的。我認為，從利息支出的角度來看，我們的資產負債表上，我喜歡我們約 50% 的債務的狀況，這將是浮動利率債務。因此，當利率確實開始下降時，我們自然會得到一點回升。

Thank you.

謝謝。

Mike Sison, Wells Fargo.

麥克西森，富國銀行。

Hey, good morning. Nice quarter and raise their.

嘿，早安。不錯的季度並提高了他們的水平。

Thank you, Mike.

謝謝你，麥克。

Chris, when you think about volume growth, this year you're tracking low single digits, not a great year overall demand. If demand picks up in '25 and the markets improve, how do you think each of the businesses would do in that environment? And in total, you have a pretty good improvement in volume growth next year.

克里斯，當你考慮銷售成長時，今年你會看到低個位數的成長，而不是今年的整體需求。如果 25 年需求回升且市場改善，您認為每個企業在這種環境下會表現如何？總的來說，明年的銷售成長將會有相當大的改善。

We absolutely expect that. I would say, what I'm really really proud of what we've been able to accomplish, Mike is really building the foundation from a margin perspective and making sure the underlying business is at a good point so that if we see any growth, it converts well. So I believe our gross margin and our SG&A is that a good point that anything that we get for incrementally across all the businesses will be accretive. We'd struggled in two businesses going back. If I look back 500 days ago, and I believe overall the portfolio is at a good spot that we can start really driving growth through all elements of the of the portfolio. And that's what I'm really proud of what we've gotten accomplished here over the last six quarters.

我們絕對期待這一點。我想說的是，我對我們所取得的成就感到非常自豪，麥克確實從利潤角度打下了基礎，並確保基礎業務處於良好狀態，這樣如果我們看到任何增長，它轉換得很好。因此，我相信我們的毛利率和銷售管理費用是一個很好的點，我們在所有業務中逐步獲得的任何東西都將是增值的。回顧過去，我們曾在兩項業務中舉步維艱。如果我回顧 500 天前，我相信整體投資組合處於一個良好的位置，我們可以開始透過投資組合的所有要素真正推動成長。這就是我對過去六個季度我們所取得的成就感到非常自豪的地方。

So anything that happens in terms of even from a perspective of industrial markets improving because of construction or mobilities as to Carl's point on where we see interest rates and any decline in interest rates that drives more automotive business or even in our from our refinish business, the acquisition that we just did with cover flex gets us into the economy segment where we only have 11% share.

因此，即使從工業市場因建築或流動性而改善的角度來看，發生的任何事情，正如卡爾的觀點，我們認為利率和利率下降會推動更多的汽車業務，甚至是我們的修補漆業務，我們剛剛對cover flex 的收購使我們進入了經濟領域，而我們只擁有11% 的份額。

The opportunity to grow here is just great. So as I think about all the segments are I see great opportunity with any upside in sales, and that's what the teams are all focused on as they're pivoting towards growth and driving the growth engine.

在這裡成長的機會非常好。因此，當我考慮所有細分市場時，我看到了銷售上行的巨大機會，這就是團隊在轉向成長並推動成長引擎時所關注的重點。

Great. Thank you.

偉大的。謝謝。

You're welcome.

不客氣。

Thank you. And this will conclude our Q&A session as well as our conference call. Thank you, all for your participation and you may disconnect at any time.

謝謝。我們的問答環節和電話會議到此結束。感謝大家的參與，您可以隨時斷開連線。