PPG Industries Inc (PPG) 2022 Q3 法說會逐字稿

Good morning. My name is Elliot, and I will be your conference operator today. At this time, I would like to welcome everyone to the Third Quarter PPG Earnings Conference Call. (Operator Instructions)

早上好。我的名字是 Elliot，今天我將成為您的會議接線員。在這個時候，我想歡迎大家參加第三季度 PPG 收益電話會議。 （操作員說明）

I would now like to turn the conference over to John Bruno, Vice President of Investor Relations. Please go ahead, sir.

我現在想將會議轉交給投資者關係副總裁約翰布魯諾。請繼續，先生。

Thank you, Elliott, and good morning, everyone. Once again, this is John Bruno. We appreciate your continued interest in PPG and welcome you to our third quarter 2022 financial results conference call.

謝謝你，Elliott，大家早上好。再一次，這是約翰布魯諾。感謝您對 PPG 的持續關注，並歡迎您參加我們的 2022 年第三季度財務業績電話會議。

Joining me on the call from PPG are Michael McGarry, Chairman and Chief Executive Officer; Tim Knavish, Chief Executive Officer-Elect; and Vince Morales, Senior Vice President and Chief Financial Officer.

與我一起接受 PPG 電話會議的還有董事長兼首席執行官 Michael McGarry； Tim Knavish，當選首席執行官；和高級副總裁兼首席財務官文斯·莫拉萊斯。

Our comments relate to the financial information released after U.S. equity markets closed on Wednesday, October 19, 2022. We have posted detailed commentary and accompanying presentation slides on the Investors Center of our website, ppg.com. The slides are also available on the webcast site for this call and provide additional support to the brief opening comments Michael will make shortly. Following management's perspective on the company's results for the quarter, we will move to a Q&A session.

我們的評論與 2022 年 10 月 19 日星期三美國股市收盤後發布的財務信息有關。我們已在我們網站 ppg.com 的投資者中心發布了詳細的評論和隨附的演示幻燈片。這些幻燈片也可在本次電話會議的網絡廣播網站上獲得，並為邁克爾將很快發表的簡短開場評論提供額外支持。根據管理層對公司本季度業績的看法，我們將進入問答環節。

Both the prepared commentary and discussion during this call may contain forward-looking statements, reflecting the company's current view of future events and their potential effect on PPG's operating and financial performance. These statements involve uncertainties and risks, which cause actual results to differ. The company is under no obligation to provide subsequent updates to these forward-looking statements.

本次電話會議期間準備好的評論和討論都可能包含前瞻性陳述，反映了公司當前對未來事件的看法及其對 PPG 運營和財務業績的潛在影響。這些陳述涉及不確定性和風險，導致實際結果不同。公司沒有義務提供這些前瞻性陳述的後續更新。

This presentation also contains certain non-GAAP financial measures. The company has provided in the appendix of the presentation materials, which are available on our website, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures. For additional information, please refer to PPG's filings with the SEC.

本演示文稿還包含某些非公認會計原則財務措施。公司已在我們網站上提供的演示材料的附錄中提供了這些非公認會計原則財務指標與最直接可比的公認會計原則財務指標的對賬。如需更多信息，請參閱 PPG 向 SEC 提交的文件。

Now let me introduce PPG Chairman and CEO, Michael McGarry.

現在讓我介紹 PPG 董事長兼首席執行官 Michael McGarry。

Thank you, John, and good morning, everyone. I would like to welcome you to our third quarter 2022 earnings call. I hope you and your loved ones are remaining safe and healthy.

謝謝你，約翰，大家早上好。歡迎您參加我們的 2022 年第三季度財報電話會議。我希望您和您所愛的人保持安全和健康。

Before I go into my comments regarding the third quarter, I would like to congratulate Tim Knavish for being appointed President and Chief Executive Officer of PPG effective January 1, 2023, and immediately joining the company's Board of Directors. Tim has an outstanding track record, having served the company for more than 35 years and leading nearly every PPG business during his career. The Board and I have full confidence that Tim will guide PPG to future growth and additional shareholder value. With Tim's appointment, I will become Executive Chairman on January 1, 2023.

在我對第三季度發表評論之前，我要祝賀 Tim Knavish 自 2023 年 1 月 1 日起被任命為 PPG 總裁兼首席執行官，並立即加入公司董事會。 Tim 擁有出色的業績記錄，他為公司服務超過 35 年，在其職業生涯中幾乎領導了所有 PPG 業務。董事會和我完全相信蒂姆將引導 PPG 實現未來的增長和額外的股東價值。在 Tim 的任命下，我將於 2023 年 1 月 1 日成為執行主席。

Now let me turn to our financial results. Last evening, we reported third quarter 2022 financial results. For the third quarter, we delivered net sales of $4.5 billion, and our adjusted earnings per diluted share from continuing operations were $1.66.

現在讓我談談我們的財務業績。昨晚，我們報告了 2022 年第三季度的財務業績。第三季度，我們實現了 45 億美元的淨銷售額，調整後的持續經營業務攤薄後每股收益為 1.66 美元。

To quickly summarize the quarter, our sales performance was a record, driven by continued realization of real-time price increases that fully offset total cost inflation for the second consecutive quarter. On a 2-year stack, selling prices are up about 18%. As we communicated earlier this month, these sales and earnings results were lower than our guidance for the quarter as we were impacted by further softening of demand in Europe and less of a sequential economic improvement than expected in China due to the pandemic restrictions in September. In addition, the strengthening of the U.S. dollar lowered sales by about 6% or $265 million worse than it was originally forecasted.

快速總結本季度，我們的銷售業績創歷史新高，這得益於持續實現實時價格上漲，這完全抵消了連續第二個季度的總成本通脹。在 2 年的堆棧中，售價上漲了約 18%。正如我們本月早些時候所傳達的那樣，這些銷售和盈利結果低於我們對本季度的指導，因為我們受到歐洲需求進一步疲軟的影響，並且由於 9 月份的大流行限制，中國的連續經濟改善不如預期。此外，美元走強使銷售額比最初預測的下降了約 6% 或 2.65 億美元。

Despite these lower-than-forecasted sales, we did deliver strong performances in several of our businesses, including PPG Comex, which delivered another record quarter. Also, our global automotive refinish Traffic Solutions and U.S. packaging coatings businesses each set all-time quarterly sales records in the quarter. Year-to-date, our automotive refinish coatings business has delivered about 1,500 net new body shop wins as customers continued to value the product, technology and industry-leading services and capabilities that this business delivers every day.

儘管這些銷售額低於預期，但我們確實在我們的幾項業務中取得了強勁的表現，包括 PPG Comex，該季度再次創下歷史新高。此外，我們的全球汽車修補漆交通解決方案和美國包裝塗料業務均在本季度創下季度銷售記錄。年初至今，我們的汽車修補漆業務已交付約 1,500 輛新車身車間，因為客戶繼續重視該業務每天提供的產品、技術和行業領先的服務和能力。

In addition, our aerospace business delivered strong double-digit percentage sales growth, volume growth aided by recovering airline travel that is now about 85% of pre-pandemic levels. With additional industry recovery, a strong order book and PPG's advantaged technology products, we expect this business to continue to grow into 2023 and beyond.

此外，我們的航空業務實現了強勁的兩位數百分比銷售增長，得益於航空旅行的複蘇，目前約為大流行前水平的 85%。隨著行業的進一步復甦、強勁的訂單和 PPG 的優勢技術產品，我們預計該業務將繼續增長到 2023 年及以後。

We continue to experience improvement in commodity raw material availability. However, certain short supply raw materials impacted our automotive refinish and aerospace coatings businesses, constraining their ability to meet their respective strong order books. Together, these 2 businesses ended the quarter with a $200 million backlog similar to the end of the second quarter.

我們繼續體驗商品原材料供應的改善。然而，某些供應短缺的原材料影響了我們的汽車修補漆和航空塗料業務，限制了它們滿足各自強勁訂單的能力。這兩家企業在本季度末的積壓訂單總額為 2 億美元，與第二季度末相似。

Importantly, our year-over-year segment operating margin recovery has begun. This reflects the progress we have made in implementing selling price increases. The third quarter marked the 22nd consecutive quarter of higher selling prices. We expect our margin recovery to accelerate into 2023 and anticipate by the first quarter of 2023, we will fully recover all cumulative inflation from 2021 and 2022.

重要的是，我們的分部營業利潤率同比復甦已經開始。這反映了我們在實施銷售價格上漲方面取得的進展。第三季度是銷售價格連續第 22 個季度上漲。我們預計我們的利潤率恢復將加速到 2023 年，並預計到 2023 年第一季度，我們將完全恢復 2021 年和 2022 年的所有累積通脹。

We continued to make good progress executing on our acquisition-related synergies and other cost savings initiatives from previously announced restructuring program, which delivered about $25 million of incremental benefit in the third quarter. During the quarter, we continued to progress our launch of the expanded Pro painter initiative with The Home Depot. Each week, our team is calling on thousands of prospective new customers and delivering new business wins. In the third quarter, we also started joint work with the HD Supply team to hunt for new paint customers, including in the commercial maintenance area. And while early, this collaboration is yielding results and we expect will be another catalyst for future growth in the U.S. architectural coatings business.

我們繼續在執行與收購相關的協同效應和先前宣布的重組計劃中的其他成本節約計劃方面取得良好進展，該計劃在第三季度帶來了約 2500 萬美元的增量收益。在本季度，我們繼續與 The Home Depot 一起推出擴展的 Pro Painter 計劃。每週，我們的團隊都會召集數以千計的潛在新客戶並帶來新的業務勝利。在第三季度，我們還開始與 HD Supply 團隊合作尋找新的油漆客戶，包括在商業維修領域。雖然早期，這種合作正在產生成果，我們預計這將成為美國建築塗料業務未來增長的另一個催化劑。

Overall, paint contractors are providing us with ongoing positive feedback on the convenience of buying well-recognized PPG Pro products at The Home Depot. Collectively, we continue to see opportunities for significant growth in the coming years. While working capital remains higher than we would like, we made solid progress in the third quarter and began to lower our inventories on a sequential basis.

總體而言，油漆承包商正在向我們提供關於在 The Home Depot 購買廣受認可的 PPG Pro 產品的便利性的持續積極反饋。總的來說，我們繼續看到未來幾年顯著增長的機會。雖然營運資金仍然高於我們的預期，但我們在第三季度取得了穩步進展，並開始連續降低庫存。

We had been carrying higher than historic levels of inventory given supply chain constraints over the past year. But given the broadening elongation of supply globally, we are now able to destock, including reducing or canceling raw material orders and reducing safety stock closer to historic levels. We are prioritizing further inventory reductions in the fourth quarter, which will benefit our cash generation.

鑑於過去一年供應鏈的限制，我們的庫存水平一直高於歷史水平。但鑑於全球供應範圍擴大，我們現在能夠去庫存，包括減少或取消原材料訂單以及將安全庫存降低至接近歷史水平。我們正在優先考慮在第四季度進一步減少庫存，這將有利於我們的現金產生。

We made modest repurchases of our stock during the quarter and repaid $100 million of debt. We continued to evaluate potential strategic bolt-on acquisitions. Consistent with our past practices, we will deploy cash in the most accretive manner for our shareholders, including some continued debt reduction.

我們在本季度適度回購了我們的股票並償還了 1 億美元的債務。我們繼續評估潛在的戰略性收購。與我們過去的做法一致，我們將以最具增值的方式為我們的股東分配現金，包括繼續減少一些債務。

On the ESG front, I want to highlight yet another example of PPG leading the way. The acquisition of Tikkurila has proved to be very valuable on several fronts, including enhancing PPG's ESG program through the addition of advantaged sustainable solutions that contribute to the circular economy. These include bio-based products and packaging made from 50% to 75% recycled plastic that is also 100% recyclable. Currently, nearly 90% of Tikkurila's products are waterborne and 48% of the portfolio is ecolabeled. We are leveraging Tikkurila's sustainability approach in our architectural business beginning in Europe.

在 ESG 方面，我想強調 PPG 引領潮流的又一個例子。事實證明，收購 Tikkurila 在多個方面都非常有價值，包括通過添加有助於循環經濟的有利可持續解決方案來增強 PPG 的 ESG 計劃。其中包括由 50% 至 75% 可回收塑料製成的生物基產品和包裝，這些塑料也是 100% 可回收的。目前，Tikkurila 近 90% 的產品是水性產品，48% 的產品組合帶有生態標籤。我們從歐洲開始在我們的建築業務中利用 Tikkurila 的可持續發展方法。

Looking ahead to the fourth quarter, normal seasonal demand trends are expected, including lower sequential sales in most of our architectural businesses and also in our Traffic Solutions business, where sales historically fall about 50% due to the weather considerations.

展望第四季度，預計會有正常的季節性需求趨勢，包括我們的大多數建築業務和交通解決方案業務的連續銷售額下降，由於天氣原因，這些業務的銷售額歷來下降了約 50%。

In Europe, we expect economic conditions to remain weak due to the softening consumer confidence and lower industrial activity related to the significantly higher energy costs and geopolitical issues. In China, we anticipate weaker-than-normal economic activity for the fourth quarter due to continued pandemic-related disruptions and slowing exports to Europe. PPG's largest factory in China was required to close for the first 10 days of October and further restrictions could curtail production and commercial activity.

在歐洲，由於消費者信心疲軟以及與能源成本顯著上升和地緣政治問題相關的工業活動減少，我們預計經濟狀況將保持疲軟。在中國，由於與大流行相關的持續中斷和對歐洲的出口放緩，我們預計第四季度的經濟活動將低於正常水平。 PPG 在中國最大的工廠被要求在 10 月的前 10 天關閉，進一步的限制可能會限制生產和商業活動。

One offset important to PPG is we expect automotive OEM builds in China to remain solid and consumer spending to improve into 2023. In general, demand in the U.S. in the huge markets remain solid, and we expect several of our businesses to continue to deliver positive year-over-year sales volume growth. Demand for architectural DIY and residential new home coatings products in the U.S. is beginning to slow, and industry demand is anticipated to weaken further in the fourth quarter and into the next year's basis of leading economic indicators.

對 PPG 而言重要的一個抵消因素是，我們預計到 2023 年，中國的汽車 OEM 生產將保持穩健，消費者支出將有所改善。總體而言，美國在巨大市場中的需求保持穩健，我們預計我們的幾項業務將繼續實現積極增長銷量同比增長。美國對建築 DIY 和住宅新家塗料產品的需求開始放緩，預計第四季度行業需求將進一步減弱，並進入明年領先經濟指標的基礎。

PPG's exposure to the U.S. new home market is relatively small and a low single-digit percentage of company sales, and our overall exposure to the residential housing market is less than 10% of company revenue. We expect some of the industry weakness to be offset by our growth initiatives with The Home Depot and other customer gains.

PPG 在美國新房市場的敞口相對較小，占公司銷售額的個位數百分比較低，我們在住宅市場的整體敞口不到公司收入的 10%。我們預計，我們與家得寶的增長計劃和其他客戶收益將抵消行業的一些弱點。

Raw materials are expected to remain inflationary with a mid-single digit higher than the prior year, but fall modestly on a sequential quarterly basis. We expect supply chain conditions to continue to broadly improve, including better raw material and transportation availability as our suppliers are nearing their 2019 manufacturing and supply capability. As a reminder, we've absorbed about $1.9 billion of raw material inflation since May of 2021.

原材料預計將保持通脹率，比上年高出中個位數，但環比環比小幅下降。隨著我們的供應商接近 2019 年的製造和供應能力，我們預計供應鏈狀況將繼續廣泛改善，包括更好的原材料和運輸可用性。提醒一下，自 2021 年 5 月以來，我們已經吸收了大約 19 億美元的原材料通脹。

In the fourth quarter, we expect further increases in energy costs, especially in Europe and to some degree, in the U.S. We will continue to prioritize implementing further real-time targeted selling price increases to mitigate these higher costs.

在第四季度，我們預計能源成本將進一步上漲，尤其是在歐洲，在某種程度上，在美國。我們將繼續優先實施進一步的實時目標銷售價格上漲，以減輕這些更高的成本。

Due to the heightened level of economic uncertainty, we have implemented an additional restructuring program focused on past payback actions targeting $70 million of annualized savings upon full implementation. The program includes several initiatives in Europe, is mostly concentrated on matching our staffing levels with lower demand.

由於經濟不確定性的加劇，我們實施了一項額外的重組計劃，重點關注過去的回報行動，目標是在全面實施後每年節省 7000 萬美元。該計劃包括歐洲的幾項舉措，主要集中在使我們的人員配備水平與較低的需求相匹配。

As we enter a period of heightened economic uncertainty, we expect our business portfolio to prove more resilient in the coming quarters. With continued recovery in the automotive OEM and aerospace coatings businesses. Along with demand-stable businesses like automotive refinish and Traffic Solutions, we believe that more than 50% of PPG's portfolio will remain resilient even if we experience a broader global economic decline. This is noteworthy and a positive step change from the prior recession.

隨著我們進入經濟不確定性加劇的時期，我們預計我們的業務組合將在未來幾個季度證明更具彈性。隨著汽車 OEM 和航空塗料業務的持續復甦。除了汽車修補漆和交通解決方案等需求穩定的業務外，我們相信，即使我們經歷更廣泛的全球經濟衰退，PPG 超過 50% 的投資組合仍將保持彈性。這是值得注意的，與之前的衰退相比，這是一個積極的變化。

Also importantly, we expect that our sequential quarterly momentum on operating margin improvement will continue in the fourth quarter as we work back towards our historical margin profile. This will be supported by maintaining our selling prices to reflect the value of the products and services we provide.

同樣重要的是，我們預計，隨著我們努力恢復我們的歷史利潤率狀況，我們的營業利潤率連續季度增長勢頭將在第四季度繼續保持。這將通過維持我們的銷售價格來反映我們提供的產品和服務的價值來支持。

While economic conditions are challenging in the near term, I remain confident about the future earnings capabilities of PPG as the earnings catalysts that I'd referenced in the past remain fully intact, and we certainly see a path to return to prior peak operating margins with opportunities to exceed them.

儘管短期內經濟狀況充滿挑戰，但我對 PPG 未來的盈利能力仍然充滿信心，因為我過去提到的盈利催化劑仍然完好無損，我們當然看到了恢復之前營業利潤率峰值的道路超越他們的機會。

In closing, as we look to finish the year managing intensifying challenges, I want to thank our team of 50,000 employees around the world who are making it happen by supporting our customers and the communities where we operate. Their dedication, even during the most challenging times, is inspiring and drives our purpose to protect and beautify the world.

最後，在我們希望結束這一年應對日益嚴峻的挑戰之際，我要感謝我們在世界各地的 50,000 名員工團隊，他們通過支持我們的客戶和我們經營所在的社區來實現這一目標。他們的奉獻精神，即使在最具挑戰性的時期，也鼓舞人心並推動我們保護和美化世界的目標。

Thank you for your continued confidence in PPG. This concludes our prepared remarks. And now, Elliott, would you please open the line for questions.

感謝您一直以來對 PPG 的信任。我們準備好的評論到此結束。現在，Elliott，請您打開電話提問。

(Operator Instructions) Our first question comes from Christopher Parkinson from Mizuho.

（操作員說明）我們的第一個問題來自瑞穗的 Christopher Parkinson。

The macro is changing and not necessarily for the better, but per your comments, it doesn't seem like the setup for this recessionary environment aligns with history, which has consequences across fixed asset leverage, end market mix when you're discussing refinish and aero, just the overall margin outlook versus past downturns. Can you just give us sort of overall update of your thoughts here and potentially anything on price cost as well?

宏觀正在發生變化，不一定會變得更好，但根據您的評論，這種衰退環境的設置似乎與歷史不符，當您討論修補和航空，只是與過去的低迷相比的整體利潤率前景。您能否在這裡向我們提供您的想法的整體更新以及可能的價格成本方面的任何信息？

Thanks, Christopher. First of all, I think the most encouraging thing about what we see is that we see continued price increases coming. So fourth quarter, we're still looking at high single digits, low double-digit price increases. So that's going to be as significant.

謝謝，克里斯托弗。首先，我認為我們所看到的最令人鼓舞的是，我們看到價格將持續上漲。所以第四季度，我們仍在關注高個位數、低兩位數的價格上漲。所以這將同樣重要。

We have seen raw materials, they have loosened up in China. They are starting to loosen up in Europe. We are arbitraging what we see in China into Europe and we expect to arbitrage Europe elsewhere. So these are things that are a little bit different than the last ones.

我們已經看到原材料，它們在中國有所鬆動。他們開始在歐洲放鬆。我們正在將我們在中國看到的套利套利到歐洲，我們希望在其他地方套利歐洲。所以這些事情與上一個有點不同。

I'll remind everybody, by the end of the year, we'll have about $2 billion of raw material inflation, and we still have other inflation. And for the second quarter and third quarter, we covered all total inflation. That includes MRO, freight logistics, labor, you name it, we covered it, okay? So we feel very confident going into the fourth quarter that we're going to continue to recover that gap.

我會提醒大家，到今年年底，我們將有大約 20 億美元的原材料通脹，而且我們還有其他通脹。對於第二季度和第三季度，我們涵蓋了所有總通脹。這包括 MRO、貨運物流、人工，你說的，我們涵蓋了，好嗎？因此，我們對進入第四季度感到非常有信心，我們將繼續彌補這一差距。

By the end of the year, we will have recovered all raw material inflation. And before the end of the first quarter, we will recover all total inflation. So we're really in good shape from that standpoint. So I'm pleased with what I see. And I think this is going to be a little bit different recession than last time because we have a strong OEM business and a strong refinish business.

到今年年底，我們將恢復所有原材料通脹。並且在第一季度末之前，我們將恢復所有的總通脹。所以從這個角度來看，我們的狀態真的很好。所以我對我看到的很滿意。而且我認為這次的衰退將與上次有所不同，因為我們擁有強大的 OEM 業務和強大的修補業務。

Our next question comes from Ghansham Panjabi from Baird.

我們的下一個問題來自 Baird 的 Ghansham Panjabi。

And congrats first off, Michael and Tim. Can you just give us a sense, Michael, on how you see architectural volumes evolving in your 3 major regions of the U.S., Europe and Mexico as we cycle into 2023? I mean, obviously, DIY has been impacted in the U.S. and Europe. But just given the extent of mortgage rate increases and some of the fundamental shifts in housing as well for markets such as the U.S., how are you planning for that evolution of volumes there?

首先恭喜邁克爾和蒂姆。邁克爾，您能否告訴我們，隨著我們進入 2023 年，您如何看待美國、歐洲和墨西哥這 3 個主要地區的建築體量的演變？我的意思是，很明顯，DIY 在美國和歐洲受到了影響。但考慮到抵押貸款利率上升的程度以及住房以及美國等市場的一些根本性變化，您如何計劃那裡的交易量變化？

Ghansham, I'm going to let Tim take this one.

Ghansham，我要讓蒂姆拿走這個。

Thanks, Ghansham. And first, I want to thank Michael and the PPG Board for their trust and confidence as we continue to drive the company forward. I also want to thank Michael personally for his leadership, his personal mentorship of me, and frankly, for setting up PPG with a global portfolio that is well positioned for future growth and also well positioned to navigate through today's economic challenges. Excited for this opportunity, I really look forward to the future and working -- continuing to work with our 50,000 people around the world.

謝謝，甘沙姆。首先，我要感謝 Michael 和 PPG 董事會在我們繼續推動公司向前發展時的信任和信心。我還想親自感謝邁克爾的領導，他對我的個人指導，坦率地說，他建立了 PPG 的全球投資組合，為未來的增長做好了準備，也為應對當今的經濟挑戰做好了準備。對這個機會感到興奮，我真的很期待未來和工作——繼續與我們在世界各地的 50,000 人合作。

Now specifically to your question, so around the world for architectural, PPG Comex, our Mexican business continues to shine. First, GDPs are holding up better than most parts of the world in Latin America. And second, just the strength of our position, the strength of our services, the strength of our brand, the strength of our network will continue to put up strong results down there. As you know, Asia Pacific for us is a fairly small business in architectural. And given some of the things happening in China, that's actually a positive at this point.

現在專門針對您的問題，所以在世界各地的建築業，PPG Comex，我們的墨西哥業務繼續大放異彩。首先，拉丁美洲的 GDP 比世界大部分地區都好。其次，我們的地位優勢、服務實力、品牌實力、網絡實力將繼續在那裡取得強勁的成績。如您所知，亞太地區對我們來說是一個相當小的建築業務。考慮到中國正在發生的一些事情，這實際上是一個積極的方面。

Europe, we continue to see soft -- quite soft DIY, as we said in Q1 and Q2, and we expect it to continue at the depressed levels that it is today. Trade in Europe is actually a bit stronger. It's down mid-single digits. The Pro backlogs are still there, driven largely by labor shortages more than anything, but we do see that moderating. We do see the trade business moderating as well in Europe, as you would expect. Some variability by country, the closer you get to the war zone the more depressed it gets. U.K., you know what's happening there and then a bit stronger in the south.

歐洲，我們繼續看到疲軟的DIY，正如我們在第一季度和第二季度所說的那樣，我們預計它將繼續保持今天的低迷水平。歐洲的貿易實際上要強一些。它下降了中個位數。 Pro 的積壓仍然存在，主要是由於勞動力短缺，但我們確實看到這種情況正在緩和。正如您所料，我們確實看到歐洲的貿易業務也在放緩。國家/地區的一些變化，越靠近戰區，它就越沮喪。英國，你知道那裡發生了什麼，然後在南部更強大。

Holding up better over here in the U.S./Canada market. We are seeing DIY softness here. Nothing like Europe, more down like low single digits in DIY U.S./Canada. But the Pro business is holding up well. Backlogs remain strong. Backlogs, our quarterly survey, paint contractors averaged about 12 weeks of backlog, pretty consistent with the prior quarter. And our omnichannel business for the Pro, we were actually up this quarter. So holding up better here in the U.S./Canada region.

在美國/加拿大市場表現更好。我們在這裡看到了 DIY 的柔軟度。不像歐洲，更像是 DIY 美國/加拿大的低個位數。但 Pro 業務表現良好。積壓依然強勁。積壓，我們的季度調查，油漆承包商平均積壓約 12 週，與上一季度非常一致。而我們為 Pro 提供的全渠道業務，我們實際上在本季度有所增長。所以在美國/加拿大地區表現得更好。

Our next question comes from Josh Spector from UBS.

我們的下一個問題來自瑞銀的 Josh Spector。

Just curious if you can comment on the pricing progression in the 2 segments. I mean, clearly, you have momentum in Performance with that increase on a 2-year stack. But Industrial maybe a little bit less obvious, 20% 2-year stack or slightly above that isn't much of an improvement Q-on-Q.

只是好奇您是否可以評論這兩個部分的定價進展。我的意思是，很明顯，隨著 2 年籌碼量的增加，你的表現有動力。但工業股可能不那麼明顯，20% 的 2 年堆棧或略高於這一水平並沒有太大的 Q-on-Q 改善。

So I'm wondering if you can comment on why pricing there wouldn't be moving up higher, especially if you're just talking about margins accelerating. And does energy prices, and that being a new inflationary factor, perhaps a higher inflationary factor, impact the ability to get pricing in any of the segments?

所以我想知道你是否可以評論為什麼那裡的價格不會上漲，特別是如果你只是在談論利潤率加速。能源價格，作為一個新的通脹因素，也許是一個更高的通脹因素，是否會影響在任何細分市場獲得定價的能力？

Josh, this is Michael. First of all, what I would tell you is that part of what you're seeing of the slowing of the price increases in the Performance Coatings segment is because of the drop in architectural sales, okay? So you have a little bit of a mix issue going on in there. So that's one. The other thing you have to remember is we've got pricing much earlier in Performance Coatings segment. And we always lag a little bit in the Industrial side. So the other piece besides mix is timing.

喬希，這是邁克爾。首先，我要告訴你的是，你所看到的高性能塗料領域價格上漲放緩的部分原因是建築銷售下降，好嗎？所以你有一點混合問題。所以這是一個。您必須記住的另一件事是，我們在高性能塗料領域的定價要早得多。我們在工業方面總是落後一點。所以除了混音之外的另一部分是時機。

So what you see, which is most important, is that on our Industrial side, it does lag but now it's catching back up. And the Industrial side was above company average, and we expect that to continue in the fourth quarter as well. And most importantly, in our automotive segment, A number of our customers have provided us retroactive pricing as well. And so that helps that margin as well.

所以你看到的，最重要的是，在我們的工業方面，它確實落後，但現在它正在迎頭趕上。工業方面高於公司平均水平，我們預計第四季度也會繼續這種情況。最重要的是，在我們的汽車領域，我們的一些客戶也為我們提供了追溯定價。因此，這也有助於提高利潤率。

So we're still anticipating some significant price improvement in the fourth quarter. And again, we'll be ready to talk about the first quarter later, but we will have positive -- significant positive price in Q1 as well.

因此，我們仍然預計第四季度的價格會出現一些顯著改善。再說一次，我們將準備好稍後討論第一季度，但我們將在第一季度獲得積極的 - 顯著的積極價格。

Josh, this is Vince. I think the key things to remember for us is the margin recovery we promised in Industrial is underway. We're seeing -- we expect that margin recovery to continue into Q4 and expand into Q1.

喬希，這是文斯。我認為我們要記住的關鍵事情是我們承諾的工業利潤恢復正在進行中。我們看到——我們預計利潤率復甦將持續到第四季度並擴大到第一季度。

Your question on energy in Europe, we did put in select energy surcharges as most companies have done to accommodate that. We're not a big energy consumer in Europe, we're downstream and we're reacting as much as we can to what's being -- what's a tough energy environment in Europe.

您關於歐洲能源的問題，我們確實像大多數公司一樣收取了部分能源附加費以適應這種情況。我們不是歐洲的能源消費大戶，我們處於下游，我們正在盡可能多地對正在發生的事情做出反應——歐洲嚴峻的能源環境是什麼。

Our next question comes from John McNulty from BMO Capital Markets.

我們的下一個問題來自 BMO Capital Markets 的 John McNulty。

Congratulations again to Michael and Tim both. So when we think about the raw material basket, it sounds like a lot of things have improved, but there are still some challenges. I guess can you help us to understand what portion of the raw material basket is still currently challenged? And then as the supply chains continue to improve, and it looks like they have a lot, I guess, how should we be thinking about what that might mean for raw material relief as we look to 2023?

再次祝賀邁克爾和蒂姆。所以當我們想到原材料籃子的時候，聽起來很多東西已經改善了，但仍然存在一些挑戰。我想你能幫我們了解一下原材料籃子的哪一部分目前仍面臨挑戰？然後隨著供應鏈的不斷改善，看起來他們有很多，我想，我們應該如何思考這對 2023 年的原材料減免可能意味著什麼？

Yes, John, this is Vince. Let me start real quickly and then I think Tim is going to chime in here. If you look, again, we have cumulative, about 40% inflation levels. We do see inflation year-over-year in Q4, but it's down sequentially. And that's, I think, the key, is we're starting to see the fever break. It's different, as Michael mentioned, by region and we're seeing arbitrage opportunities. And I think Tim has some specifics.

是的，約翰，這是文斯。讓我快速開始，然後我想蒂姆會在這裡插話。如果你再看一遍，我們有累積的大約 40% 的通貨膨脹水平。我們確實看到第四季度的通貨膨脹率同比下降，但環比下降。這就是，我認為，關鍵是我們開始看到發燒停止。正如邁克爾所說，不同地區的情況有所不同，我們看到了套利機會。我認為蒂姆有一些細節。

Yes. And so from the availability situation, John, it's much better. We're now, to isolated examples, you've got the singular example here in the U.S. with a fire at a particular resin supplier that has caused a transient disruption. We put some alternatives in place to deal with that.

是的。因此，從可用性情況來看，約翰，情況要好得多。我們現在，對於孤立的例子，你在美國這裡有一個獨特的例子，一個特定的樹脂供應商發生火災，造成了短暫的中斷。我們採取了一些替代方案來解決這個問題。

And if you look at like cut across the aerospace transparencies, you've got some things not related to coatings, but components, machine parts, acrylic parts that go into the manufacture and assembly of a windshield. But now we're down to handfuls of items, some minor additives as opposed to what we had a quarter or certainly 2 quarters ago.

如果你看一下航空透明膠片，你會發現一些與塗層無關的東西，而是用於製造和組裝擋風玻璃的組件、機器零件、亞克力零件。但現在我們只剩下少量的物品，一些次要的添加劑，而不是我們四分之一或兩個季度前的東西。

Yes. And just one other comment here is if you think about the inflation that we've absorbed in the past almost 2 years now, a part of it started as a supply chain issue, but we then were saddled with inflation that included COVID absenteeism, freight issues, port issues. A lot of those other issues have fallen by the wayside. So we do feel, given those other issues have been resolved, the supply-demand economics will start to play a bigger factor.

是的。這裡還有一條評論是，如果您考慮一下我們在過去近 2 年中吸收的通貨膨脹，其中一部分是從供應鏈問題開始的，但後來我們背負著通貨膨脹，其中包括 COVID 缺勤、運費問題，端口問題。許多其他問題都被擱置了。所以我們確實認為，鑑於其他問題已經解決，供需經濟將開始發揮更大的作用。

Our next question comes from Stephen Byrne from Bank of America Merrill Lynch.

我們的下一個問題來自美銀美林的斯蒂芬伯恩。

Yes. So I was curious to hear your view on the ability for you to expand geographically in your various businesses. Which of them do you think you have the most potential to expand? For example, Tikkurila, did that give you a footprint in a region where you think you can meaningfully expand either refinish or traffic markings? What's the outlook for you in that region?

是的。因此，我很想听聽您對您在各種業務中進行地域擴張的能力的看法。你認為他們中的哪一個最有發展潛力？例如，Tikkurila，這是否讓您在一個您認為可以有意義地擴展修補或交通標記的地區留下足跡？您對該地區的前景如何？

Well, Stephen, this is Michael. Let me just give you some examples that all play into the positives of what we do with the acquisition. So if you think about Traffic Solutions, that was primarily a U.S. business. They had a key tiny piece in Mexico where you take our PPG Comex team, and they're a powerhouse in Mexico. So what do we do? We take those formulations that they have in the U.S., we transfer them down to Mexico. We localize them for those local markets and we started to sell them. And our Traffic Solutions business is growing 20-plus percent every quarter since we've had it, and we've had it now 5 quarters. So it's moving along.

好吧，斯蒂芬，這是邁克爾。讓我給你舉一些例子，這些例子都對我們對收購所做的事情產生了積極影響。因此，如果您考慮交通解決方案，那主要是美國業務。他們在墨西哥有一個關鍵的小部分，在那裡你可以帶領我們的 PPG Comex 團隊，他們是墨西哥的強者。那麼我們該怎麼辦？我們採用他們在美國擁有的那些配方，然後將它們轉移到墨西哥。我們針對當地市場將它們本地化，然後開始銷售它們。自從我們擁有交通解決方案業務以來，我們的交通解決方案業務每個季度都在增長 20% 以上，現在我們已經擁有了 5 個季度。所以它一直在前進。

Same thing with Tikkurila. So you go to Tikkurila, and they had a strong customer relationship up in Scandinavia. It's not that we weren't selling in Scandinavia, but they had some tremendous relationships. So we're able to take our industrial products and bring them up there. We were able to expand some of our refinish products up there. And I think we highlighted that when we took you to see [Beckers] up in Scandinavia for the Investor Day.

Tikkurila 也是如此。所以你去 Tikkurila，他們在斯堪的納維亞半島建立了牢固的客戶關係。並不是說我們不在斯堪的納維亞半島銷售，而是他們有一些非常好的關係。所以我們能夠把我們的工業產品帶到那裡。我們能夠在那裡擴展我們的一些修補產品。我想我們強調了當我們帶你去斯堪的納維亞的 [Beckers] 參加投資者日時。

And the same thing when you think about China. So when we bought Wörwag and Cetelon, we took those formulations. We moved them over to China, and we've been able to grow our automotive parts and accessories business in China, and that's been a nice win for us. We have a new waterborne technology for automotive parts where we're growing significantly faster than market.

當你想到中國時也是如此。因此，當我們購買 Wörwag 和 Cetelon 時，我們採用了這些配方。我們把他們搬到了中國，我們已經能夠在中國發展我們的汽車零部件和配件業務，這對我們來說是一個很好的勝利。我們擁有一種新的汽車零部件水性技術，我們的增長速度明顯快於市場。

So I think we have a number of these examples where we do acquisitions and we move them around the world, and it turns out to be a strong positive for us. So thank you very much for the question.

因此，我認為我們有很多這樣的例子，我們進行收購併將它們轉移到世界各地，結果證明這對我們來說是一個很大的積極因素。所以非常感謝你的問題。

Our next question comes from Kevin McCarthy from VRP.

我們的下一個問題來自 VRP 的 Kevin McCarthy。

I'd like to ask how much destocking do you anticipate internally and externally. For example, do you expect to run your assets at a rate that's below underlying consumption in the next several quarters perhaps outside of auto OEM and aerospace where those markets have been more dislocated or depressed?

我想問一下，您預計內部和外部會去庫存多少。例如，您是否希望在接下來的幾個季度中以低於基本消耗的速度運行您的資產，也許在這些市場更加混亂或低迷的汽車 OEM 和航空航天領域之外？

Well, we're certainly, Kevin, going to do that for some of our businesses where the raw materials we built up. So that's going to happen. But you did highlight a number that are going to be well north of that. So automotive, refinish, Traffic Solutions, things like that are all going to be well above company average.

好吧，凱文，我們當然會為我們建立原材料的一些業務這樣做。所以這會發生。但你確實強調了一個遠在北邊的數字。因此，汽車、修補漆、交通解決方案之類的東西都將遠高於公司平均水平。

But the thing you have to remember is we're also going to take advantage of the arbitrage in raw materials. So if it makes sense for us, we're moving TiO2 right now from China. We're moving it into Europe. So we're going to take advantage of things like that. And net-net, I would tell you that we're probably going to be pretty close. We took down inventories $100 million in Q3. We're probably going to take down another couple of hundred million dollars in Q4. And I think we're in pretty good shape.

但你必須記住的是，我們還將利用原材料套利。因此，如果這對我們有意義，我們現在正在從中國轉移二氧化鈦。我們正在將其轉移到歐洲。所以我們要利用這樣的東西。還有net-net，我會告訴你，我們可能會非常接近。我們在第三季度減少了 1 億美元的庫存。我們可能會在第四季度再減少幾億美元。我認為我們的狀態非常好。

Yes. Let me just add on to what Michael said here. I think if you think about the coatings industry more broadly, we're a batch process. So we typically can start and stop as we please. We're not a continuous process. Where we are this cycle versus prior cycles is we don't have a lot of inventory. Our end customers, with a few exceptions, do not have a lot of inventory in the chain. We're seeing that in, for example, automotive refinish, as Michael alluded to. We're certainly seeing that in aerospace.

是的。讓我補充一下邁克爾在這裡所說的話。我認為，如果您更廣泛地考慮塗料行業，我們是一個批處理過程。所以我們通常可以隨心所欲地開始和停止。我們不是一個連續的過程。與之前的周期相比，我們在這個週期中所處的位置是我們沒有很多庫存。除了少數例外，我們的最終客戶在供應鏈中沒有大量庫存。正如邁克爾所暗示的那樣，我們在例如汽車修補漆中看到了這一點。我們當然在航空航天領域看到了這一點。

So there's not, Kevin, a big destock coming in many of our industries. Automotive, another one where we're inventory light all the way through the chain. So we're going to run at or slightly below what we see as our end customers' consumption to draw down our inventories. But with a couple of small exceptions, we're including in some of our big box DIY customers if there's not a lot of inventory in channels. But we do have a huge focus on drawing down our raw material inventories in the fourth quarter.

所以，凱文，我們的許多行業都不會出現大規模的去庫存。汽車，另一個我們在整個鏈條中清點庫存的產品。因此，我們將運行在或略低於我們認為最終客戶的消費量以減少我們的庫存。但除了一些小例外，如果渠道中的庫存不多，我們會將一些大型 DIY 客戶包括在內。但我們確實非常重視在第四季度減少原材料庫存。

Next question comes from Laurent Favre from Exane BNP Paribas.

下一個問題來自 Exane BNP Paribas 的 Laurent Favre。

Congrats again to Michael and Tim. My question is, again, on this inventory point and destocking. On the volume guidance for Q4, I was wondering if you had made a specific assumption on destocking itself on the customer side.

再次祝賀邁克爾和蒂姆。我的問題再次是關於這個庫存點和去庫存。關於第四季度的銷量指導，我想知道您是否對客戶方面的去庫存做出了具體假設。

Yes, Laurent, thanks for the question. This is Tim. To Vince's point, really, the only segment where we're seeing destocking on the customer side is architectural DIY big box. And we are seeing that in Europe predominantly, but also here in the United States. And so we do expect that to continue really for the remainder of the year until they reach their targeted levels. But beyond that, many of our customer channels are still fairly light or very light in some cases on inventory. So that's the only destocking we expect to see.

是的，勞倫特，謝謝你的提問。這是蒂姆。就文斯而言，真的，我們看到客戶方面去庫存的唯一部分是建築 DIY 大盒子。我們主要在歐洲看到這一點，但在美國也看到了這一點。因此，我們確實希望這種情況在今年剩餘時間內真正持續下去，直到達到目標水平。但除此之外，我們的許多客戶渠道在某些情況下的庫存仍然相當少或非常少。所以這是我們期望看到的唯一去庫存化。

Yes. And if I can just add, this is Vince again. If you go to Europe, when we're seeing that -- we started to see that really in Q2 -- Q1, early Q2 of this year. So we're going to lap -- in a couple of months here, we're going to lap those declines. So we do have a different comparison base in 2023 for Europe.

是的。如果我可以補充一下，我又是文斯。如果你去歐洲，當我們看到這一點時——我們在第二季度開始真正看到這一點——第一季度，今年第二季度初。因此，我們將進行測試——在這裡的幾個月內，我們將記錄這些下降。因此，我們在 2023 年對歐洲確實有不同的比較基礎。

Our next question comes from Michael Sison from Wells Fargo.

我們的下一個問題來自富國銀行的 Michael Sison。

Congrats to you, Tim, and been great working with you, Michael. I assume you're moving to Cleveland post retirement, but -- I guess the first question for you, Michael, when you think about your outlook for the fourth quarter, the $1.05 to $1.20 seems sort of low on a quarterly run rate. And just curious what you think needs to happen to see sequential improvement heading into the first half of '23.

恭喜你，蒂姆，和你一起工作很愉快，邁克爾。我假設你退休後會搬到克利夫蘭，但是 - 我想你的第一個問題，邁克爾，當你考慮第四季度的前景時，1.05 美元到 1.20 美元的季度運行率似乎有點低。只是好奇你認為需要發生什麼才能看到連續改進進入 23 年上半年。

And then maybe for Tim, maybe you can comment on what you believe PPG's earnings potential is at some point in time. There was a $9 number out there for a while, and I just didn't know if that was still the one that you think is the right number.

然後也許對於蒂姆來說，也許你可以評論一下你認為 PPG 在某個時間點的盈利潛力。有一段時間有一個 9 美元的號碼，我只是不知道這是否仍然是您認為正確的號碼。

Okay. Mike, this is Michael. So I will take the first question, and I'll let Tim answer the second question.

好的。邁克，這是邁克爾。所以我會回答第一個問題，我會讓蒂姆回答第二個問題。

Look, at the end of the day, when we put together our original, let's call it, our pre-announcement guidance, we -- our Chinese team was very confident that post President Xi's election for his third term, that the COVID policies in China would be relaxed and would take a more normalized approach. Clearly, with this speech last week, that is not going to be the case. So we've adjusted based on that. Our Tianjin plant, which is actually our largest coatings plant in the world in China, it was down the last 10 days of September. It was down the first 10 days of October, running at reduced rates. And consumer confidence, obviously, is something we're going to be watching very closely in China.

看，歸根結底，當我們整理我們最初的，我們稱之為發布前的指導時，我們——我們的中國團隊非常有信心，在習主席第三次當選後，COVID 政策在中國會放鬆，會採取更加正常化的方式。顯然，在上週的這次演講中，情況並非如此。所以我們在此基礎上進行了調整。我們的天津工廠實際上是我們在中國世界上最大的塗料工廠，它在 9 月的最後 10 天都出現了停機。它在 10 月的前 10 天下降，運行速度降低。顯然，消費者信心是我們將在中國密切關注的事情。

But the good news is when you look at the rest of China, the automotive business had a very strong third quarter. They had a very -- we're projecting a pretty good fourth quarter. That's historically the best quarter for automotive in China. And I'm very encouraged by the fact that the automotive guys in China are exporting their electric vehicles. And as you know, the electric vehicles are good for us. BYD is not only exporting to Europe, but they're also exploring to Southeast Asia. So we feel very confident about that.

但好消息是，縱觀中國其他地區，汽車業務第三季度表現非常強勁。他們有一個非常 - 我們預計第四季度非常好。從歷史上看，這是中國汽車行業最好的季度。中國的汽車業者正在出口他們的電動汽車，這讓我感到非常鼓舞。如您所知，電動汽車對我們有好處。比亞迪不僅出口到歐洲，還在開拓東南亞。所以我們對此非常有信心。

So I think overall, you may view that guide as a little weak, but there's a lot of things out there that are quite uncertain. We don't know how much destocking DIY guys will do in the fourth quarter. We don't know how much they're going to -- typically they start buying in December to get ready for the new season. We have not put any of that in there. So we're being a bit cautious given what we see. And so I think our guide is reasonable, and we're certainly going to keep you updated through the quarter as we go.

所以我認為總體而言，您可能會認為該指南有點弱，但有很多事情是非常不確定的。我們不知道 DIY 傢伙在第四季度會做多少去庫存。我們不知道他們會買多少——通常他們會在 12 月開始購買，為新賽季做準備。我們沒有把任何東西放在那裡。因此，鑑於我們所看到的，我們有點謹慎。因此，我認為我們的指南是合理的，我們肯定會在整個季度中隨時為您提供最新信息。

So I'll end with that, and I'll let Tim talk about how he sees the $9.

所以我將以此結束，讓蒂姆談談他如何看待 9 美元。

Right. The $9, the answer is it's a question of when, not if. The fundamentals for $9 are absolutely there. If you look at the pluses and minuses on the ledger for that, you've got aero recovery, you've got auto recovery, you've got more refinish recovery. That great business is still down 10% versus pre-COVID. You've got the inflection of the price cost curve. You know about our restructuring and the footprint work we've done. China is still closed. Acquisition synergies, technology, et cetera, et cetera.

正確的。 9 美元，答案是時間問題，而不是是否。 9美元的基本面絕對存在。如果您查看分類帳上的優缺點，您將獲得航空恢復、自動恢復、更多修補漆恢復。與 COVID 之前相比，這項偉大的業務仍下降了 10%。你得到了價格成本曲線的拐點。你知道我們的重組和我們所做的足跡工作。中國仍然是封閉的。收購協同效應、技術等等。

So that side of the ledger is a lot stronger than the other. The other side of the ledger is really only about macroeconomic-driven volume. And we only need some of that to come back to get to that $9. So it's absolutely in our future. And thanks for the question.

所以分類賬的那一邊比另一邊強很多。分類賬的另一面實際上只涉及宏觀經濟驅動的交易量。我們只需要其中的一部分來獲得那 9 美元。所以這絕對是我們的未來。感謝您的提問。

We now turn to Noah Poponak from Goldman Sachs.

我們現在轉向高盛的諾亞波波納克。

This is Duffy. Can you hear me okay?

這是達菲。你能聽到我的聲音嗎？

Yes, Duffy.

是的，達菲。

So first, thanks and congrats to Michael and Tim. Second one, 2 questions around kind of the price cost. So the first one is to get to your first half goal of offsetting all the raw material inflation we've seen to date, how much sequential price do you need between Q3 and whether that ends up being Q1 or Q2 next year?

首先，感謝並祝賀邁克爾和蒂姆。第二個，關於價格成本的2個問題。所以第一個是實現你的上半年目標，即抵消我們迄今為止看到的所有原材料通脹，你需要多少第三季度之間的連續價格，以及最終是明年第一季度還是第二季度？

And then the second one is the $1.9 billion you referenced, what is it realistically you think we're playing for, let's say, over a 3-year period? I mean, obviously, there's some true inflation in there that we'll probably never get back. You've got stuff like the Allnex plant that, again, theoretically, as soon as that's back up and running, you'll see some relief there. But you can do a lot better job kind of analyzing the supply/demand change for each of the particular ones -- is it half? Is it 3 quarters? What is like a realistic bogey that we think we can get back on the raw material side over a couple of years?

然後第二個是你提到的 19 億美元，你認為我們在 3 年的時間裡實際上是為了什麼？我的意思是，很明顯，那裡有一些真正的通貨膨脹，我們可能永遠不會回來。你有像 Allnex 工廠這樣的東西，同樣，理論上，一旦它恢復運行，你就會在那裡看到一些緩解。但是你可以更好地分析每個特定的供需變化——是一半嗎？是3個季度嗎？我們認為我們可以在幾年內重新回到原材料方面的現實柏忌是什麼樣的？

Duffy, this is Vince. I'll take the first part of that question and I'll let Michael take the second part.

達菲，這是文斯。我會回答這個問題的第一部分，我會讓邁克爾回答第二部分。

To fully recover our total inflation, as we said early -- late Q4, early Q1, we have very modest targeted pricing actions we're going to take in Q4, and we're going to take some targeted actions in Q1. So again, we're not -- this is not relying on exceptionally exceedingly high pricing going forward.

為了完全恢復我們的總通脹率，正如我們早些時候所說的 - 第四季度末，第一季度初，我們將在第四季度採取非常溫和的目標定價行動，我們將在第一季度採取一些有針對性的行動。再說一次，我們不是——這不依賴於未來極高的定價。

So Duffy, let me just reiterate, look, we're going to have covered all inflation. We covered it all in the second quarter. That's total inflation. That's not just raws. We've covered it at all in the third quarter. We're going to cover it all in the fourth quarter. So now we're eating into some of that gap that we had built up, and we'll be totally caught up in Q1. And that's with the price increases we know. That's not with anything that may come up in the next 30 to 60 days that we may also talk -- tag on, as Vince says, from a targeted standpoint.

所以達菲，讓我重申一下，看，我們將涵蓋所有通貨膨脹。我們在第二季度涵蓋了所有內容。這就是總通貨膨脹。這不僅僅是原料。我們在第三季度已經完全覆蓋了它。我們將在第四季度涵蓋所有內容。所以現在我們正在消化我們已經建立的一些差距，我們將在第一季度完全趕上。這就是我們所知道的價格上漲。這與我們可能會談論的未來 30 到 60 天內可能出現的任何事情無關——正如文斯所說，從有針對性的角度來看。

Okay. So what is it that we're probably not going to see relief on? We're clearly not going to see relief on labor, okay? That's not going to happen. But we are going to see -- we already have started to see relief on transportation. We think warehousing costs are going to moderate a little bit. It's not going to be significant, but that's going to moderate some. And raw materials, we've already seen it in -- starting in TiO2. We've seen it start in epoxy. We're going to continue to see it in some of the basic isocyanates. There's no question in Q1 we're going to get to lower emulsion costs. So we can see these things coming.

好的。那麼，我們可能不會看到緩解的原因是什麼？我們顯然不會看到分娩的緩解，好嗎？這不會發生。但我們將看到——我們已經開始看到交通方面的緩解。我們認為倉儲成本將略有下降。這不會很重要，但這會緩和一些。原材料，我們已經看到了——從二氧化鈦開始。我們已經看到它從環氧樹脂開始。我們將繼續在一些基本異氰酸酯中看到它。毫無疑問，我們將在第一季度降低乳液成本。所以我們可以看到這些事情的發生。

Now are we going to get all the way back to 2019 levels on some of these? Maybe, maybe not. It's a little bit too early to make that call. But what I am confident of is that our team has done a really good job of pricing effectively. Our customers are well aware of what's going on in that space. And I think we're going to continue to close this gap and it will be completely closed by the end of Q1. And that's why we're confident that margins will continue to expand in 2023.

現在我們要在其中一些上一路回到 2019 年的水平嗎？也許，也許不是。現在打這個電話有點太早了。但我有信心的是，我們的團隊在有效定價方面做得非常好。我們的客戶非常了解該領域正在發生的事情。而且我認為我們將繼續縮小這一差距，並將在第一季度末完全縮小。這就是為什麼我們有信心在 2023 年利潤率將繼續擴大。

Our next question comes from Frank Mitsch from Fermium Research.

我們的下一個問題來自 Fermium Research 的 Frank Mitsch。

And first, we get a changing of the guard in Pittsburgh at the quarterback and now this. Michael, it's been a pleasure working with you. Best wishes for the future. And obviously, congratulations, Tim.

首先，我們在匹茲堡換了四分衛的後衛，現在是這個。邁克爾，很高興與您合作。對未來的美好祝愿。顯然，恭喜蒂姆。

I wanted to drill down a bit more into the volume trends. Third quarter volumes were down 3%. I was wondering if you could let us know what that was by month to see if there was some degradation as we exited the quarter.

我想更深入地了解交易量趨勢。第三季度的銷量下降了 3%。我想知道你是否可以讓我們知道每月的情況，看看我們退出本季度時是否有一些退化。

And as I think about the fourth quarter -- as you think about the fourth quarter, you mentioned that you anticipate volumes down mid-single digits. And in the prepared remarks, you said that Asia was expected to be down 10%. I was wondering if you could offer some comments on expectations, Europe, U.S., Canada and Asia.

當我想到第四季度時——當你想到第四季度時，你提到你預計銷量會下降到個位數。在準備好的評論中，你說亞洲預計將下跌 10%。我想知道您能否就預期、歐洲、美國、加拿大和亞洲發表一些評論。

Frank, this is Michael. Thank you very much for your kind comments. It's been a pleasure working with you and obviously we'll continue to follow the Jets regardless of where I end up playing golf in the future.

弗蘭克，這是邁克爾。非常感謝您的友好評論。很高興與您合作，很明顯，無論我將來在哪裡打高爾夫球，我們都會繼續關注噴氣機隊。

So let's talk a little bit about the third quarter. Look, the thing about the third quarter was September in China was weaker than we expected, that we certainly did not expect the impact from them asking us to reduce rates 50-plus percent in our Tianjin plant. We certainly saw the decreases coming in the destocking in the architectural channel in Europe. They've been very aggressive with that and they made that even more aggressive in the September time frame. We started to see that in the U.S. as well. Anything that touches a consumer, whether it's the appliance area or think about things that look like a Peloton, that continues to be weaker. So we're tracking that closely.

所以讓我們談談第三季度。看，中國第三季度的情況比我們預期的要弱，我們當然沒有預料到他們要求我們將天津工廠的費率降低 50% 以上的影響。我們當然看到歐洲建築渠道去庫存的減少。他們對此非常激進，並且在 9 月的時間框架內更加激進。我們也開始在美國看到這一點。任何觸及消費者的東西，無論是電器領域還是想想看起來像 Peloton 的東西，都會變得更弱。所以我們正在密切跟踪。

Right now, I would say for the fourth quarter volumes, we're not projecting any major surprises in that area. I mean, cautiously optimistic that the OEM space in Europe has reached the bottom. I think that's one area that we'll be looking for to see if that levels out where it is now.

現在，我想說的是，對於第四季度的銷量，我們預計該領域不會出現任何重大意外。我的意思是，謹慎樂觀地認為歐洲的 OEM 空間已經觸底。我認為這是我們將尋找的一個領域，看看它是否會達到現在的水平。

Certainly, we're worried about and watching the interest rates here in the U.S. and how that's going to impact automotive. But look, this year, we're probably going to finish with automotive builds around 81-plus million cars and we're looking at next year to be about 85 million.

當然，我們擔心並關注美國的利率以及這將如何影響汽車。但是看，今年，我們可能會完成大約 81 多萬輛汽車的生產，我們預計明年將達到 8500 萬輛左右。

So for some of these things that are weakening, we do see some things that are strengthening. And should China ever move away from -- or at least move partially away from their zero-COVID policy, we know that flights in China will significantly increase. They've been pent up. They want to move around, but they just haven't been allowed to by the government. So on that standpoint, I feel pretty confident.

因此，對於其中一些正在削弱的事物，我們確實看到了一些正在加強的事物。如果中國放棄或至少部分放棄其零新冠病毒政策，我們知道中國的航班將大幅增加。他們被壓抑了。他們想四處走動，但他們只是沒有被政府允許。所以從這個角度來看，我覺得很自信。

Our next question comes from Arun Viswanathan from RBC Capital Markets.

我們的下一個問題來自加拿大皇家銀行資本市場的 Arun Viswanathan。

And Michael, congratulations on your next endeavors there. Good working with you.

邁克爾，祝賀你接下來的努力。和你一起工作很好。

I'm just curious on the volume side. So when we think about it, there looks like there's been some real structural damage in Europe. Volumes may not necessarily recover to where they were pre-pandemic levels. I don't know if you'd agree with that, but maybe you can just comment on that.

我只是對音量方面感到好奇。因此，當我們考慮它時，歐洲似乎存在一些真正的結構性破壞。成交量不一定會恢復到大流行前的水平。我不知道您是否同意這一點，但也許您可以對此發表評論。

And then secondarily, if we do see some continued weakness in Europe, is there a risk that volumes also could deteriorate in North America? And if that's the case, then are we kind of thinking about Q4 earnings run rate as likely a good starting point for Q1 and most of next year?

其次，如果我們確實看到歐洲持續疲軟，北美的銷量是否也可能惡化？如果是這樣的話，那麼我們是否認為第四季度的盈利運行率可能是第一季度和明年大部分時間的一個良好起點？

Yes. Arun, this is Tim. Thanks for the question. I'll go first and then maybe hand it over to Vince. For Europe, I think the guidance that we put out, we're comfortable with what we projected from an architectural standpoint, industrial, auto. We feel pretty much like we bottomed on the volume standpoint from a European situation.

是的。阿倫，這是蒂姆。謝謝你的問題。我會先去，然後也許會把它交給文斯。對於歐洲，我認為我們發布的指導方針，我們對我們從建築、工業、汽車的角度預測的內容感到滿意。從歐洲的情況來看，我們感覺就像我們在數量上觸底了一樣。

And then the carryover to the U.S. we really haven't -- we haven't seen that yet. The U.S. volumes are holding up pretty well for us with the exception of, again, anything consumer-related on the industrial side and architectural DIY. So we haven't really seen the contagion cross the ocean into the United States market yet.

然後結轉到美國，我們真的沒有 - 我們還沒有看到。除了工業方面和建築 DIY 與消費者相關的任何東西外，美國的銷量對我們來說保持得很好。因此，我們還沒有真正看到這種蔓延大洋進入美國市場的情況。

Yes. Arun, this is Vince. On your question about structural demand, I think it's too early to make that call. I think as we look into 2023, again, we're going to lap some easier comparisons beginning in March. We do feel there is a health -- there's a consumer there that typically has spent money. We were obviously seeing some impact from that due to higher energy prices. The length of that energy price issue will drive some of the answers to your question that we just don't have.

是的。阿倫，這是文斯。關於你關於結構性需求的問題，我認為現在做出這個決定還為時過早。我認為，當我們展望 2023 年時，我們將從 3 月開始進行一些更簡單的比較。我們確實覺得這是一種健康——那裡有一個通常花錢的消費者。由於能源價格上漲，我們顯然看到了一些影響。該能源價格問題的長度將推動您的問題的一些我們只是沒有的答案。

And if activity or production shifts to other parts of the world from Europe due to those energy prices, we already have positions. So if it shifts to China or shifts to Mexico, we'll supply the customers there.

如果由於這些能源價格，活動或生產從歐洲轉移到世界其他地區，我們已經有了頭寸。因此，如果它轉移到中國或轉移到墨西哥，我們將供應那裡的客戶。

Our next question comes from John Roberts from Credit Suisse.

我們的下一個問題來自瑞士信貸的約翰·羅伯茨。

Best wishes, Michael, and congrats, Tim. The theme in auto OEM is that in Europe and the U.S., we're already at recession levels so that we don't decline further. Now that Europe is actually probably in a recession, do you still think that European auto OEM is going to be flat to up next year?

最好的祝福，邁克爾，恭喜，蒂姆。汽車 OEM 的主題是，在歐洲和美國，我們已經處於衰退水平，因此我們不會進一步衰退。既然歐洲實際上可能處於衰退之中，您是否仍然認為歐洲汽車 OEM 會在明年持平到上漲？

John, this is Michael. I think that European auto demand is going to remain [a catalyst] for the next 2 to 3 quarters. I don't see any catalysts worth a turnaround. At the end of the day, Europe rarely gets below that 8 million or 9 million cars in Western Europe. That's about where we are now.

約翰，這是邁克爾。我認為歐洲汽車需求在未來 2 到 3 個季度仍將是[催化劑]。我認為沒有任何催化劑值得扭轉。歸根結底，歐洲很少會低於西歐的 800 萬或 900 萬輛汽車。這就是我們現在所處的位置。

And overall, we have a lot of cars that are driven by corporate buying and fleet buying and those behaviors have not ever changed because they're ingrained in the habits of the companies that do those things. So we're pretty confident we're at that level.

總的來說，我們有很多汽車是由企業購買和車隊購買驅動的，這些行為從未改變，因為它們根植於做這些事情的公司的習慣中。所以我們非常有信心我們處於那個水平。

In the U.S., look, I mean we've been constrained. I mean, right now, there's only 32 days of inventory on the lots. And many of the most popular colors are very hard to find. And so people are still buying.

在美國，聽著，我的意思是我們受到了限制。我的意思是，現在，這些批次只有 32 天的庫存。而且很多最流行的顏色都很難找到。所以人們仍在購買。

If you think about the truck market, you can't find a truck out there. So that remains a very solid market, and that's always a good indicator because our -- the man and the van kind of stuff, those guys need trucks. And so that's going to continue.

如果你想想卡車市場，你在外面找不到卡車。所以這仍然是一個非常穩固的市場，這始終是一個很好的指標，因為我們的 - 人和貨車之類的東西，那些人需要卡車。所以這將繼續下去。

We do see some continuum momentum on EVs, but we're really excited about the EV momentum in China. I didn't talk about this earlier, but China had a goal of having 25% of all cars by 2025 EV. Well, actually, last quarter, they hit that target. And the fact that these guys are starting to export EVs is an encouraging factor for us. And the largest maker of EVs in China is BYD and we just happen to be the largest supplier to BYD. So we feel like we're in good shape.

我們確實看到了電動汽車的一些持續發展勢頭，但我們對中國的電動汽車發展勢頭感到非常興奮。我之前沒有談到這一點，但中國的目標是到 2025 年電動汽車佔所有汽車的 25%。嗯，實際上，上個季度，他們達到了這個目標。這些人開始出口電動汽車這一事實對我們來說是一個令人鼓舞的因素。中國最大的電動汽車製造商是比亞迪，而我們恰好是比亞迪最大的供應商。所以我們覺得我們的狀態很好。

Yes. I think, John -- this is Vince. I think holistically, when we look at the global auto market next year, our forecast 6 months ago was we'd be up 5% to 10% year-over-year. Our current forecast is we're going to be up 5% to 8%. So there might be some cropping off at the top of that, but we still feel very good about global auto growth next year.

是的。我想，約翰——這是文斯。我認為，從整體上看，當我們審視明年的全球汽車市場時，我們 6 個月前的預測是同比增長 5% 到 10%。我們目前的預測是增長 5% 到 8%。因此，最重要的是可能會有一些收穫，但我們仍然對明年的全球汽車增長感到非常滿意。

We now turn to Mike Harrison from Seaport Research Partners.

我們現在求助於 Seaport Research Partners 的 Mike Harrison。

And let me add my congratulations, Michael and Tim.

讓我祝賀邁克爾和蒂姆。

Wanted to ask maybe for a little bit more color on the actions that you guys are taking to reduce cost by another $70 million. You mentioned that a lot of those are going to be taken in Europe. But can you talk about some of the different buckets in terms of whether it's supply chain procurement, manufacturing optimization, head count reduction. Maybe talk about the timing? And also, should we assume that it's split pretty ratably between the 2 segments?

想詢問一下你們為將成本再降低 7000 萬美元而採取的行動。您提到其中很多將在歐洲進行。但是，您能否談談供應鏈採購、製造優化、裁員等方面的一些不同方面。也許談談時間？而且，我們是否應該假設它在兩個部分之間相當合理地劃分？

Mike, this is Tim. I'll start with -- and thanks for the question. The vast majority of the new cost-out program are people reductions. We anticipate globally we'll reduce our head count by about 2% and most of those will be fairly fast moving.

邁克，這是蒂姆。我將開始 - 謝謝你的問題。絕大多數新的成本支出計劃都是裁員。我們預計在全球範圍內，我們將減少約 2% 的員工人數，其中大部分員工將快速發展。

Any facility discussions, of course, we would work with the appropriate works councils. But the majority by far of this new program are fairly fast reductions in staffing.

當然，任何設施討論，我們都會與適當的工作委員會合作。但到目前為止，這項新計劃的大部分內容都是相當迅速地裁員。

And Mike, this is Michael. It is ratably the same between the Performance side and the Industrial side. And I'll let John talk a little bit about the $70 million.

邁克，這是邁克爾。性能方面和工業方面的情況大致相同。我會讓約翰談談這 7000 萬美元。

Yes, Mike. So we are targeting $70 million and that will start benefiting the company as early as the fourth quarter, along with other open progress we've had from prior years. At this time, we expect next year the savings will be a total of about $70 million.

是的，邁克。因此，我們的目標是 7000 萬美元，這將在第四季度開始使公司受益，以及我們前幾年取得的其他公開進展。目前，我們預計明年將節省總計約 7000 萬美元。

Our next question comes from David Begleiter from Deutsche Bank.

我們的下一個問題來自德意志銀行的 David Begleiter。

This is Anthony Mercandetti on for David Begleiter. Can you discuss the benefit in U.S. architectural coatings from The Home Depot relationship? And maybe quantify the additional wins that were mentioned in the prepared commentary?

這是大衛·貝格萊特（David Begleiter）的安東尼·梅爾坎德蒂（Anthony Mercandetti）。您能談談家得寶與美國建築塗料的關係嗎？也許可以量化準備好的評論中提到的額外勝利？

Sure, Anthony. This is Tim. Thanks for the question. The Home Depot Pro program is progressing well. We've got thousands of new customers from the program. And we've actually, as you heard in the prepared comments, we've activated the next phase, which is engaging with HD Supply.

當然，安東尼。這是蒂姆。謝謝你的問題。 Home Depot Pro 計劃進展順利。我們已經從該計劃中獲得了數千名新客戶。實際上，正如您在準備好的評論中所聽到的那樣，我們已經啟動了下一階段，即與 HD Supply 合作。

And the beauty of HD Supply, they're largely MRO focused, hospitality, health care, government, multifamily, maintenance, repair and delivered on site and previously did not do a lot of paint. So this is a lot of upside opportunity for us.

還有 HD Supply 的優點，他們主要關注 MRO、酒店、醫療保健、政府、多戶家庭、維護、維修和現場交付，以前沒有做很多油漆。所以這對我們來說是一個很大的上昇機會。

And to put some scale on some of the comments earlier, we're focused heavily on lead indicators and we're averaging over 6,000 new customer engagements every week, and that is enabled by the linkage of our CRM systems between The Home Depot and PPG. So these are new customer opportunities for us that are already buying paint from somewhere else and buying other products from The Home Depot.

為了對前面的一些評論進行一定程度的衡量，我們非常關注領先指標，我們平均每周有超過 6,000 名新客戶參與，這是通過我們的 CRM 系統在 The Home Depot 和 PPG 之間的鏈接實現的.所以這些對我們來說是新的客戶機會，他們已經從其他地方購買油漆並從家得寶購買其他產品。

We've got about a 40% win rate. That compares to historical levels of about a 20% win rate. So we're very satisfied with that lead indicator.

我們有大約 40% 的勝率。相比之下，歷史水平約為 20% 的勝率。所以我們對這個領先指標非常滿意。

And then on the HD Supply, we're very early days here, but we've also started to engage in the first month 12,000 new customers just through that next stage of the program.

然後在 HD Supply 上，我們還處於早期階段，但我們也開始在第一個月吸引 12,000 名新客戶，就在該計劃的下一階段。

So big picture, this is a $10 billion U.S. addressable market for the Pro painter. It's a marathon, not a sprint as you convert each one of these contractors. But we're pleased with the results so far, and we're expecting double-digit growth in this category for us for many quarters to come.

如此大的畫面，對於 Pro Painter 來說，這是一個價值 100 億美元的美國潛在市場。這是一場馬拉松，而不是短跑，因為您轉換了這些承包商中的每一個。但我們對迄今為止的結果感到滿意，我們預計未來許多季度這一類別的增長將達到兩位數。

Our next question comes from Aleksey Yefremov from Key Corp.

我們的下一個問題來自 Key Corp 的 Aleksey Yefremov。

Congratulations, Michael and Tim. In the U.S., Canada DIY market, you mentioned that it's down low single digit. How does this compare to prior downturns? How bad do you think this could get?

祝賀你，邁克爾和蒂姆。在美國、加拿大的 DIY 市場，你提到它下降了個位數。這與之前的經濟衰退相比如何？你認為這會變得多糟糕？

And also in the short term, if you can comment if this is down low single digit, was getting worse in September, October or was stable?

而且在短期內，如果您可以評論一下，如果這是下降的低個位數，在 9 月、10 月會變得更糟還是穩定？

This is Michael, Aleksey. I would tell you the architectural business in September was a little bit lighter on the destocking in the big boxes. So that is not demand related. They just decided they would move into a little bit lower inventory position. As Tim has said on multiple occasions, our business with The Home Depot continues to grow. We're really pleased with that.

這是邁克爾，阿列克謝。我會告訴你，9 月份的建築業務在大箱子去庫存方面稍微輕鬆一些。所以這與需求無關。他們只是決定他們將進入一個更低的庫存位置。正如蒂姆多次所說，我們與家得寶的業務繼續增長。我們對此感到非常高興。

We'll have some further announcements about some other wins in the big box segment when it's appropriate to put it out there. But we're going to have a substantial nice slow win in the big box segment starting in the first quarter, and so we'll be starting to ship that in Q1.

我們將在適當的時候發布一些關於大盒子部分其他勝利的進一步公告。但是從第一季度開始，我們將在大盒子領域取得相當大的緩慢勝利，因此我們將在第一季度開始出貨。

And what I would tell you is that this is probably -- the slight downturn is lighter than historical. It's still too early to call. Obviously, interest rates -- when I think about interest rates of 6% and 7%, it's still low compared to my first house that I got at 11%. So of course, my kids don't understand that.

我要告訴你的是，這可能是 - 輕微的低迷比歷史要輕。現在打電話還為時過早。顯然，利率——當我想到 6% 和 7% 的利率時，與我獲得的第一套房子的 11% 相比，它仍然很低。所以當然，我的孩子們不明白這一點。

But I would tell you that we still have a positive outlook on the housing market. We know that there is a labor shortage and more of this is being driven by the fact that both our Pro painters don't have enough labor. There's not enough labor in the new home construction market. So net-net, I would still tell you that we're optimistic.

但我會告訴你，我們仍然對房地產市場持樂觀態度。我們知道勞動力短缺，而更多的原因是我們的兩位專業畫家都沒有足夠的勞動力。新房建設市場勞動力不足。所以net-net，我仍然會告訴你，我們是樂觀的。

Yes, I'd just like to add one other thing on U.S. housing with all the numbers everybody has seen. And really, we're talking about new housing here. We're going to be honest with ourselves in how we plan for that based on what's really happening in that space. And the way we're looking at it is we do see an air pocket in the new housing space for -- or some number of quarters. The positive from PPG standpoint, it only represents about 1% to 2% of our total enterprise sales. And we're also, frankly, significantly stronger in commercial maintenance repair.

是的，我只想在美國住房方面添加另一件事，其中包含每個人都見過的所有數字。真的，我們在這裡談論的是新住房。我們將誠實地對待自己，根據該領域的實際情況制定計劃。我們看待它的方式是，我們確實在新的住房空間中看到了一個氣穴——或者一些季度。從 PPG 的角度來看，它只占我們企業總銷售額的 1% 到 2% 左右。而且，坦率地說，我們在商業維修方面也明顯更強。

So we are accounting for what's happening in new housing in our guidance. And the other positive, as Michael alluded to, the housing fundamentals are still strong for the mid- to long term. There is a housing shortage in the United States as well as many other countries. So while there is maybe an air pocket in the short term, the fundamentals for the mid and long term remain strong.

因此，我們在指導中考慮了新住房中發生的情況。正如邁克爾所暗示的那樣，另一個積極因素是，中長期房地產基本面仍然強勁。美國以及許多其他國家都存在住房短缺。因此，儘管短期內可能存在氣穴，但中長期的基本面依然強勁。

Our next question comes from P.J. Juvekar from Citigroup.

我們的下一個問題來自花旗集團的 P.J. Juvekar。

This is Patrick Cunningham on for P.J. How is Tikkurila holding up relative to your expectations, especially given the energy crunch in Europe and the consumer slowdown?

這是帕特里克·坎寧安（Patrick Cunningham）為 P.J. 主持的節目。相對於您的預期，Tikkurila 的表現如何，尤其是考慮到歐洲的能源緊縮和消費放緩？

Yes, Patrick, Tim again here. We are very pleased with Tikkurila as a result in our first year of ownership. It has given us technology. It's given us ESG. It's given us a great wood care offering that we can spread throughout the rest of PPG, starting with the rest of Europe. It's given us market access, strong #1 position in a number of countries. It's -- and a great management team, by the way, which was a very pleasant -- I'm not going to say a surprise, but the strength and depth of the management team was better than we had anticipated.

是的，帕特里克，蒂姆又來了。在我們擁有的第一年，我們對 Tikkurila 感到非常滿意。它給了我們技術。它為我們提供了 ESG。它為我們提供了出色的木材護理產品，我們可以將其推廣到 PPG 的其他地區，從歐洲其他地區開始。它為我們提供了市場准入，在許多國家/地區擁有強大的#1 地位。這是——順便說一句，這是一個非常令人愉快的優秀管理團隊——我不會說一個驚喜，但管理團隊的實力和深度比我們預期的要好。

So we are absolutely thrilled with Tikkurila and the path forward. Of course, from a DIY standpoint, they're seeing some of the same issues that I mentioned earlier for kind of the Pan-European situation. But between what we acquired with Tikkurila and what we're able to bring into Tikkurila and their position from other businesses like light industrial, like refinish, like protective coatings, we really are just thrilled with how that acquisition is doing.

因此，我們對 Tikkurila 和前進的道路感到非常興奮。當然，從 DIY 的角度來看，他們看到了一些與我之前提到的泛歐局勢相同的問題。但是在我們從 Tikkurila 獲得的東西和我們能夠帶入 Tikkurila 的東西以及他們從輕工業、修補漆、保護塗料等其他業務中的地位之間，我們真的對這次收購的表現感到非常興奮。

And Patrick, I would add one thing that the skill set that we brought to Tikkurila that -- they were starting to learn how to do, but we've accelerated is pricing. And this is an area where they have a market-leading position in Finland, a market-leading position in Sweden, a market-leading position in the Baltics. That pricing muscle hadn't been exercised previously, and we're showing them how to exercise it. So it's a win-win from that standpoint.

帕特里克，我要補充一點，我們為 Tikkurila 帶來的技能組合——他們開始學習如何做，但我們已經加快了定價。這是他們在芬蘭處於市場領先地位、在瑞典處於市場領先地位、在波羅的海處於市場領先地位的地區。這種定價能力以前沒有被鍛煉過，我們正在向他們展示如何鍛煉它。所以從這個角度來看是雙贏的。

And Patrick, this is Vince. I don't want to sway away from your question, but the other acquisition we did was Ennis-Flint, Michael alluded to it earlier. We've had double-digit sales growth in that business. The outlook for that business continues to look promising into 2023, especially with the infrastructure activities in the U.S., et cetera. So again, very promising situation with Ennis-Flint as well.

還有帕特里克，這是文斯。我不想繞開你的問題，但我們所做的另一項收購是 Ennis-Flint，Michael 早些時候提到過。我們在該業務中實現了兩位數的銷售增長。到 2023 年，該業務的前景繼續看好，尤其是在美國的基礎設施活動等方面。同樣，Ennis-Flint 的情況也非常有希望。

Our next question comes from Laurence Alexander from Jefferies.

我們的下一個問題來自 Jefferies 的 Laurence Alexander。

This is Kevin Estok on for Laurence. I was just wondering if you could discuss how you guys think about incremental margins between the different regions you operate in, in particular, if there was a difference between EU and U.S. incremental margins, let's say, every additional dollar that's spent by customers?

這是勞倫斯的凱文·埃斯托克。我只是想知道你們是否可以討論你們如何看待你們經營的不同地區之間的增量利潤，特別是，如果歐盟和美國的增量利潤之間存在差異，比如說，客戶每多花一美元？

Yes, yes. Kevin, this is Vince. We're still in that 30% to 40% range for incremental margins, certainly around the fringes as activity in Europe -- win activity in Europe comes back, it will be a little higher just because our utilization rates are a little lower. But I would certainly pencil in 30% to 40% incremental margins.

是的是的。凱文，這是文斯。我們仍處於 30% 到 40% 的增量利潤率範圍內，當然隨著歐洲的活動在邊緣附近 - 在歐洲贏得活動回來，它會更高一點，因為我們的利用率有點低。但我肯定會增加 30% 到 40% 的利潤率。

And then we have to -- as we've talked about several times on this call, there'll be some benefit from price raws as that normalizes. So that will be above those incremental margins.

然後我們必須 - 正如我們在這次電話會議上多次談到的那樣，隨著價格正常化，價格原始數據將會帶來一些好處。因此，這將高於這些增量利潤。

Our next question comes from Steven Haynes from Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Steven Haynes。

As working capital frees up a little bit as inventories come down, can you just provide a bit of an update on your M&A pipeline and how you're thinking about doing deals versus share buyback going forward?

隨著庫存下降，營運資金有所釋放，您能否提供一些關於您的併購渠道的最新信息，以及您如何考慮未來進行交易與股票回購？

Steven, this is Michael. Listen, our inventory on the pipeline of deals is still solid, but the most important thing is we're going to remain disciplined on how it affects total shareholder returns. So we're going to decide whether it's better to pay down debt versus do acquisitions versus buying back stock, whatever is the most accretive to our shareholders.

史蒂文，這是邁克爾。聽著，我們在交易渠道上的庫存仍然很穩固，但最重要的是我們將在它如何影響股東總回報方面保持紀律。因此，我們將決定償還債務與進行收購與回購股票是否更好，這對我們的股東來說是最有利的。

So we're actively engaged in this space. There are still a number of deals we had. I always tell people that when earnings are falling, it's always harder to get deals done because people want to be paid on what their old earnings look like and not what the current earnings are looking like. So that always does make it a little bit more of a challenge, talk about normalized earnings versus where they currently are. But we're going to remain disciplined in this area. And I don't think you should expect anything different than what you've seen from PPG in the past.

所以我們正在積極參與這個領域。我們還有很多交易。我總是告訴人們，當收入下降時，完成交易總是更難，因為人們希望根據他們以前收入的樣子而不是當前收入的樣子來獲得報酬。因此，這總是讓它變得更具挑戰性，談論標準化收益與目前的情況。但我們將在這方面保持紀律。而且我認為您不應期望與您過去從 PPG 看到的情況有所不同。

Our last question today comes from Adrien Tamagno from Berenberg.

我們今天的最後一個問題來自貝倫貝格的 Adrien Tamagno。

And congratulations to Tim and Michael. A question for Tim, I mean, given your extensive experience in all of the areas of PPG, where do you see the greatest potential for self-help and margin recovery in the current environment?

並祝賀蒂姆和邁克爾。提姆的一個問題，我的意思是，鑑於您在 PPG 所有領域的豐富經驗，您認為在當前環境中自助和利潤恢復的最大潛力在哪裡？

Thank you, Adrien, for the question. And let me just first say I am very excited about the opportunity we have at PPG. And I can assure you that we will continue to execute on our margin recovery and we will continue to execute on the optimization of shareholder return, first and foremost.

謝謝你，阿德里安，你的問題。首先讓我說我對我們在 PPG 擁有的機會感到非常興奮。我可以向你保證，我們將繼續執行我們的利潤率恢復，我們將繼續執行優化股東回報，首先。

Beyond that, second, as Michael indicated, the change becomes effective on January 1, and at the appropriate time after that, I look forward to engaging all of our key stakeholders, including this group, to communicate further about my priorities, my vision for the next phase of evolution for PPG. So thrilled with the opportunity, encouraged on our path to margin recovery, are encouraged on the opportunities to deliver shareholder return and look forward to 2023 for both organic growth and continued opportunities on the inorganic side.

除此之外，第二，正如邁克爾所說，變更將於 1 月 1 日生效，在此之後的適當時間，我期待與我們所有的主要利益相關者（包括這個團隊）一起，進一步溝通我的優先事項，我的願景PPG 的下一個發展階段。對這個機會感到非常興奮，在我們實現利潤率復甦的道路上受到鼓舞，對實現股東回報的機會感到鼓舞，並期待 2023 年的有機增長和無機方面的持續機會。

There are no further questions at this time. Mr. John Bruno, I turn the call back over to you.

目前沒有其他問題。約翰布魯諾先生，我把電話轉給你。

Thank you, Elliot. I want to thank everyone for your interest and your attention today. This concludes our third quarter earnings call. Have a good day.

謝謝你，艾略特。我要感謝大家今天的關注和關注。我們的第三季度財報電話會議到此結束。祝你有美好的一天。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連接。