PPG Industries Inc (PPG) 2023 Q1 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 First Quarter PPG Earnings Conference Call. (Operator Instructions)

早上好。我叫 Elliot，今天我將擔任你們的會議接線員。此時，我想歡迎大家參加第一季度 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, Elliot, and good morning, everyone. Once again, this is John Bruno. We appreciate your continued interest in PPG and welcome you to our First Quarter 2023 Financial Results Conference Call. Joining me on the call from PPG are Tim Knavish, President and Chief Executive Officer; and Vince Morales, Senior Vice President and Chief Financial Officer.

謝謝你，埃利奧特，大家早上好。這又是約翰·布魯諾。我們感謝您對 PPG 的持續關注，並歡迎您參加我們的 2023 年第一季度財務業績電話會議。和我一起接到 PPG 電話的還有總裁兼首席執行官 Tim Knavish；高級副總裁兼首席財務官 Vince Morales。

Our comments relate to the financial information released after U.S. equity markets closed on Thursday, April 20, 2023. We have posted detailed commentary and accompanying presentation slides on the Investor Center of our website, ppg.com. The slides are also available on the webcast site for this call to provide additional support for brief opening comments Tim 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 2023 年 4 月 20 日星期四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。本次電話會議的網絡直播網站上也提供了這些幻燈片，為 Tim 即將發表的簡短開場白提供額外支持。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 may 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，反映公司當前對未來事件及其對 PPG 運營和財務業績的潛在影響的看法。這些陳述涉及不確定性和風險，可能導致實際結果有所不同。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 GAAP 財務措施。公司在演示材料的附錄中提供了這些非 GAAP 財務指標與最直接可比的 GAAP 財務指標的對賬，這些非 GAAP 財務指標可在我們的網站上獲取。如需更多信息，請參閱 PPG 向美國證券交易委員會提交的文件。

Now let me introduce PPG President and CEO, Tim Knavish.

現在讓我介紹 PPG 總裁兼首席執行官 Tim Knavish。

Thank you, John, and good morning, everyone. I'd like to welcome you to our First Quarter 2023 Earnings Call. I will keep my comments brief, providing a few highlights on our first quarter financial performance and on our outlook.

謝謝約翰，大家早上好。歡迎大家參加我們的 2023 年第一季度財報電話會議。我將保持簡短的評論，重點介紹我們第一季度的財務業績和前景。

Our first quarter sales were a record $4.4 billion and were achieved despite the backdrop of macro challenges, including soft global industrial activity, elevated cost inflation, continued geopolitical issues and weakening demand in U.S. construction-related end use markets. We delivered adjusted earnings per diluted share from continuing operations of $1.82, which is 33% higher than the first quarter of 2022.

我們第一季度的銷售額達到創紀錄的 44 億美元，儘管存在宏觀挑戰，包括全球工業活動疲軟、成本通脹上升、地緣政治問題持續存在以及美國建築相關終端使用市場需求疲軟，但我們仍實現了這一目標。我們的持續經營業務調整後每股攤薄收益為 1.82 美元，比 2022 年第一季度高出 33%。

Our operating segment margin recovery accelerated, improving 380 basis points compared to the first quarter of 2022 as we work back toward our historical profile. The first quarter was aided by incremental 2023 selling price increases in the Performance Coatings reporting segment and in total company-wide. We have now fully offset all cumulative cost inflation incurred since early 2021.

我們的運營部門利潤率恢復加速，與 2022 年第一季度相比提高了 380 個基點，因為我們正在努力恢復我們的歷史概況。第一季度得益於高性能塗料報告部門和全公司範圍內 2023 年銷售價格的上漲。我們現在已經完全抵消了自 2021 年初以來發生的所有累計成本通脹。

As I highlight some of the key drivers that drove the strong first quarter performance, an overriding theme is around the benefits we are deriving from our diverse portfolio. For example, PPG has the largest and most diversified aerospace business in the coatings industry. We are well positioned to serve our customers in the aerospace aftermarket, and our backlogs expanded once again this quarter following the reopening in China as customers need to replenish their stock with PPG's technologically advantaged products, including sealants and transparencies. We expect this business to continue to grow for the remainder of 2023 and beyond.

當我強調推動第一季度業績強勁的一些關鍵驅動因素時，一個最重要的主題是圍繞我們從多元化投資組合中獲得的好處。例如，PPG 在塗料行業擁有規模最大、最多元化的航空航天業務。我們有能力為航空航天售後市場的客戶提供服務，在中國重新開放後，本季度我們的積壓訂單再次增加，因為客戶需要用 PPG 的技術優勢產品（包括密封劑和透明膠）補充庫存。我們預計該業務將在 2023 年剩餘時間及以後繼續增長。

Also, PPG has the largest architectural coatings business in Mexico, where current economic conditions remain robust and among the best in the world. The PPG Comex business continued their strong execution and delivered an 11th consecutive quarter of record sales.

此外，PPG 在墨西哥擁有最大的建築塗料業務，墨西哥目前的經濟狀況依然強勁，位居世界最佳之列。 PPG Comex 業務繼續保持強勁執行力，連續第 11 個季度創下銷售記錄。

We are laser-focused on driving organic growth. During the quarter, we benefited from several customer wins that included becoming the primary paint supplier at Walmart's 3,800 locations that carry paint products. The expansion of our well-recognized Glidden DIY brand at Walmart and in our independent dealer channel will support further growth opportunities.

我們專注於推動有機增長。在本季度，我們從幾個客戶的勝利中受益，其中包括成為沃爾瑪 3,800 個銷售油漆產品的地點的主要油漆供應商。我們在沃爾瑪和我們的獨立經銷商渠道中廣為人知的 Glidden DIY 品牌的擴張將支持進一步的增長機會。

The automotive refinish business has now installed 1,400 global MOONWALK machines, recently gaining traction in the U.S. with additional rollouts planned globally. About 1/3 of these installations are new body shop wins.

汽車修補漆業務現已在全球安裝了 1,400 台 MOONWALK 機器，最近在美國獲得了關注，併計劃在全球範圍內進行更多部署。這些裝置中約有 1/3 是新的車身修理廠。

While overall demand conditions in Europe remain difficult, our leading position in automotive OEM in the region allowed us to support our customers during a sharp rise in automotive builds in the region, albeit off a historically low base. Our OEM sales volumes in the region were up mid-teen percentage for the quarter and we expect additional growth throughout 2023.

儘管歐洲的整體需求狀況仍然困難，但我們在該地區汽車 OEM 領域的領先地位使我們能夠在該地區汽車製造量急劇上升的情況下為我們的客戶提供支持，儘管基數處於歷史低位。本季度我們在該地區的 OEM 銷量增長了 15%，我們預計整個 2023 年將進一步增長。

The first quarter is typically a negative cash generation quarter due to our business seasonality. However, our strong earnings contributed to us generating positive operating cash flow in the first quarter for the first time in 7 years as our operating cash generated was about $400 million higher than the first quarter of 2022. Our financial results were better than our preliminary first quarter update on April 3. This was mostly attributable to stronger sales at the end of the month, a richer sales mix and lower costs than we predicted.

由於我們的業務季節性，第一季度通常是負現金產生季度。然而，我們強勁的收益使我們在第一季度產生了 7 年來的首次正經營現金流，因為我們產生的經營現金比 2022 年第一季度高出約 4 億美元。我們的財務業績好於我們的初步業績4 月 3 日的季度更新。這主要歸因於月底的強勁銷售、更豐富的銷售組合和低於我們預期的成本。

A quick update to our very important ESG initiatives. We are prioritizing and delivering sustainably advantaged products and services to our customers and view this as a key lever for organic growth. Last year, we increased our sales from sustainably advantaged products to 39% of our total sales and continue to better define our product sustainability priorities to enable the sustainability ambitions of our customers.

快速更新我們非常重要的 ESG 舉措。我們正在優先考慮並向我們的客戶提供具有可持續優勢的產品和服務，並將其視為有機增長的關鍵槓桿。去年，我們將可持續優勢產品的銷售額增加到總銷售額的 39%，並繼續更好地定義我們的產品可持續性優先事項，以實現我們客戶的可持續性目標。

We look forward to sharing our new 2030 targets once our emissions reduction goals are validated by the Science-Based Targets Initiative. We will also be launching our 2022 ESG report in late May, which will include our progress against current environmental goals as well as our previously communicated diversity, equity and inclusion targets.

一旦我們的減排目標得到基於科學的目標倡議的驗證，我們期待分享我們新的 2030 年目標。我們還將在 5 月下旬發布我們的 2022 年 ESG 報告，其中將包括我們在當前環境目標以及我們之前傳達的多樣性、公平性和包容性目標方面取得的進展。

Moving to our outlook. It is evident that challenges remain to the demand environment, and in some cases, such as U.S. housing and construction, they're weakening. Despite these anticipated headwinds, we remain confident that our margin recovery momentum will continue. We're executing against the shopping list of opportunities which we expect to contribute to strong year-over-year earnings growth in the second quarter and for the rest of 2023. This includes supporting our aerospace customers as they fulfill their strong order books, and we expect a second straight quarter of more than 10% sales volume growth year-over-year in this business.

轉向我們的前景。很明顯，需求環境仍然存在挑戰，在某些情況下，例如美國的住房和建築業，挑戰正在減弱。儘管存在這些預期的不利因素，但我們仍然相信我們的利潤率恢復勢頭將繼續下去。我們正在執行我們希望在第二季度和 2023 年剩餘時間內實現強勁的同比收入增長的機會購物清單。這包括支持我們的航空航天客戶完成大量訂單，以及我們預計該業務的銷量將連續第二個季度同比增長超過 10%。

Also, as availability of raw materials returns to prepandemic levels, we expect our earnings to start benefiting from moderate deflation from recent historic inflation highs. As a reminder, aggregate raw material inflation since early 2021 remains at historically high levels. Additionally, our manufacturing is beginning to improve for multiyear production disruptions, and we expect this will generate efficiencies that will provide another earnings growth lever in the coming quarters.

此外，隨著原材料的供應恢復到大流行前的水平，我們預計我們的收益將開始受益於近期歷史通脹高位帶來的適度通貨緊縮。提醒一下，自 2021 年初以來的原材料總通脹率仍處於歷史高位。此外，我們的製造業正開始改善多年的生產中斷，我們預計這將產生效率，從而在未來幾個季度提供另一個盈利增長槓桿。

With respect to Europe, we are seeing coatings demand stabilize, albeit at lower levels, which will enable further year-over-year earnings growth, aided by the actioning against our restructuring program. PPG has leading architectural coatings positions in several countries in Europe. Once the economy begins to improve, this will provide an additional earnings growth lever.

就歐洲而言，我們看到塗料需求趨於穩定，儘管處於較低水平，這將在針對我們的重組計劃採取行動的幫助下實現進一步的同比收益增長。 PPG 在歐洲多個國家擁有領先的建築塗料地位。一旦經濟開始好轉，這將提供額外的盈利增長槓桿。

I'm also pleased with the growth prospects for our auto refinish, protective coatings and traffic solutions businesses. These end-use markets have proven to be more demand-resilient than in prior economic downturns, and a couple of these are positioned for further growth to support infrastructure investment in the United States.

我也對我們的汽車修補漆、防護塗料和交通解決方案業務的增長前景感到滿意。事實證明，這些最終用途市場比之前的經濟低迷時期更具需求彈性，其中一些市場有望進一步增長，以支持美國的基礎設施投資。

In China, we expect moderate and continuous sequential quarterly improvement in domestic demand as the year progresses. This will be more evident on a year-over-year basis given the pandemic-related restrictions in China last year during the second and fourth quarters.

在中國，我們預計隨著時間的推移，國內需求將出現適度且連續的季度改善。鑑於去年第二季度和第四季度中國實施了與大流行相關的限制措施，這一點與去年同期相比將更加明顯。

In summary, for the past few quarters, we have been conveying our strong conviction that various earnings growth catalysts would be activated. I am pleased that we have reached this inflection point and continue to have strong conviction, as reflected in our full year earnings guidance, that year-over-year earnings growth will continue, 2023. In addition, in this challenging macroeconomic period, you can also count on PPG's legacy of being highly focused on controlling the controllables, including managing our entire cost structure and optimizing our working capital.

總而言之，在過去幾個季度，我們一直堅信各種盈利增長催化劑將被激活。我很高興我們已經達到了這個拐點，並繼續堅信，正如我們的全年收益指引所反映的那樣，到 2023 年，收益將繼續同比增長。此外，在這個充滿挑戰的宏觀經濟時期，您可以還依賴 PPG 高度專注於控制可控因素的傳統，包括管理我們的整個成本結構和優化我們的營運資金。

As I've begun my new role as CEO, I've challenged our team to focus on our advantages, prioritizing investments that will differentiate us and move the needle for our customers and our business. This includes advancing our digital capabilities throughout our businesses to improve our customers' productivity and further enhance our internal efficiencies. Our team is committed to accelerating earnings growth while preserving the strengths of PPG's legacy.

當我開始擔任首席執行官的新角色時，我向我們的團隊提出挑戰，要求他們專注於我們的優勢，優先考慮能夠讓我們脫穎而出並為我們的客戶和業務帶來積極影響的投資。這包括在我們的整個業務中提升我們的數字能力，以提高我們客戶的生產力並進一步提高我們的內部效率。我們的團隊致力於在保持 PPG 傳統優勢的同時加快盈利增長。

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

感謝您一直以來對 PPG 的信任。我們準備好的發言到此結束。埃利奧特，請你打開問題熱線好嗎？

(Operator Instructions) Our first question today comes from Duffy Fischer from Goldman Sachs.

（操作員說明）我們今天的第一個問題來自高盛的 Duffy Fischer。

Congrats on a nice quarter. My question is mostly around the sequential EPS and how that relates to history. So if you stripped out 2020 and 2021 and looked at the 6 years before that and last year, Q1 to Q2 has averaged up about $0.48 with all of those years being above $0.40. And at the midpoint of your guide, you're only up $0.28 this year. So how do you match those 2?

祝賀一個不錯的季度。我的問題主要圍繞連續每股收益以及它與歷史的關係。因此，如果你剔除 2020 年和 2021 年並查看之前的 6 年和去年，第一季度到第二季度的平均漲幅約為 0.48 美元，而所有這些年份都在 0.40 美元以上。在您的指南的中點，您今年只上漲了 0.28 美元。那麼你如何匹配這兩個？

And then a similar question for first half versus second half. If you just use the midpoint of your guide, your second half is down $0.80 versus the first half. But in those same 7 years, if you look historically, it's averaged down about $0.30. So could be conservatism, could be something different in the seasonality, maybe something around the loading of Walmart. But can you just kind of walk through why we should expect a lower -- or why we shouldn't expect kind of the higher number of history to prevail?

然後是上半場與下半場的類似問題。如果您只使用指南的中點，則下半年比上半年下降 0.80 美元。但在這同樣的 7 年裡，如果你回顧歷史，它平均下跌約 0.30 美元。保守主義也可能如此，季節性可能有所不同，可能與沃爾瑪的裝貨量有關。但是你能不能解釋一下為什麼我們應該期待一個更低的——或者為什麼我們不應該期待一個更高數量的歷史佔上風？

Sure, Duffy. First of all, let me give you a few high-level comments, and I'll let Vince fill in the gaps. On the Q1 to Q2 step up, we definitely had some onetimers in Q1. Notably, the Walmart load-in, we had some insurance settlements related to past storms. We have a promotion for Comex Easter sales every year, more of those sales were pulled into Q1 than normal. And that's a big piece of the Q1 to Q2, and I'm sure Vince can give you more details.

當然，達菲。首先，讓我給你一些高水平的評論，我會讓 Vince 填補空白。在 Q1 到 Q2 的升級中，我們在 Q1 肯定有一些曾經的人。值得注意的是，沃爾瑪加載中，我們有一些與過去風暴相關的保險結算。我們每年都會為 Comex 復活節促銷活動，其中第一季度的銷售額比平時多。這是 Q1 到 Q2 的很大一部分，我相信 Vince 可以為您提供更多詳細信息。

As for the rest of the year, we are cautious on volume for a number of reasons. Slower China opening of manufacturing. We're cautious on U.S. housing for the second half of the year. We're cautious on global industrial.

至於今年餘下時間，出於多種原因，我們對成交量持謹慎態度。中國製造業開放步伐放緩。我們對今年下半年的美國房地產持謹慎態度。我們對全球工業持謹慎態度。

So those are some of the few high levels. And Vince, do you want to add a few details?

因此，這些是為數不多的高級別中的一些。文斯，你想補充一些細節嗎？

No. I think we quantified the Walmart business. The load-in for us in Q1 was about $40 million. Again, just a little more color. The Comex business has a very large Easter campaign. The Easter campaign was split last year between Q1 and Q2. This year, most of the load occurred in Q1, so we're not going to have that traditional step up. And we did see really good activity in Europe auto. And again, our prediction is, while that's still going to be a very strong business, Q1 was a very strong European auto.

不，我認為我們量化了沃爾瑪業務。第一季度我們的加載量約為 4000 萬美元。再次，只是多一點顏色。 Comex 業務有一個非常大的複活節活動。去年復活節活動分為第一季度和第二季度。今年，大部分負載發生在第一季度，因此我們不會採用傳統的升級方式。我們確實看到歐洲汽車市場的活動非常好。同樣，我們的預測是，雖然這仍將是一項非常強勁的業務，但第一季度是一款非常強勁的歐洲汽車。

Our next question comes from Ghansham Panjabi from Baird.

我們的下一個問題來自 Baird 的 Ghansham Panjabi。

Congrats on all the progress to start the year. I guess, first off on auto refinish and your outlook for directional improvement in 2Q. Is that just a function of comparability from the year-ago period and the China reopening?

祝賀今年開始的所有進展。我想，首先是汽車修補漆和您對第二季度定向改進的展望。這僅僅是一年前和中國重新開放的可比性函數嗎？

And also going back to some of the volume weakness in Europe and North America for auto refinish in the first quarter. Can you just give us some more color on the customer order pattern timing that you called out?

還要回到第一季度歐洲和北美汽車修補漆的一些銷量疲軟。你能給我們更多關於你所說的客戶訂單模式時間的顏色嗎？

Yes. Sure. Thanks for the question, Ghansham. Let me start off by saying I have full confidence -- high confidence in our auto refinish business globally going forward as well as over the last several quarters because our key-to-key value proposition is best in class.

是的。當然。謝謝你的問題，Ghansham。首先讓我說我有充分的信心——對我們在全球範圍內以及過去幾個季度的汽車修補業務充滿信心，因為我們的關鍵對關鍵價值主張是一流的。

What you see in refinish, if you look at Q4, then to Q1, then to what we're saying for Q2, this business, because of the two-step distribution, you really need to look at it over a multi-quarter basis just because it's hard sometimes to project the order pattern of our independent distribution. So I would look at Q1 in that light and rather look at, instead of an individual quarter, look at it over multiple quarters.

你在修補漆中看到的，如果你看一下第四季度，然後是第一季度，然後是我們所說的第二季度，這個業務，因為兩步分配，你真的需要在多個季度的基礎上看它只是因為有時很難預測我們獨立分銷的訂單模式。因此，我會從這個角度來看待第一季度，而不是看一個單獨的季度，而是看多個季度。

But we have strong backlogs across the body shops, and it's really driven by two things other than paint. It's driven by parts shortages and it's driven by labor shortages, so those backlogs remain. And so this actual sellout to the collision industry remains strong. There's just some fluctuation in independent distribution ordering patterns.

但是我們的車身修理廠積壓了大量訂單，這實際上是由油漆以外的兩件事推動的。它是由零件短缺和勞動力短缺驅動的，所以這些積壓仍然存在。因此，碰撞行業的實際銷售情況依然強勁。獨立分銷訂購模式只是有些波動。

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 Stephen Byrne。

I'd like to drill in a little bit on your commercial strategy in U.S. architectural. It seems like you have a similar offering now at the independent hardware stores and Walmarts with this Glidden platform. And between those and The Home Depot arrangement and your own stores, it seems like it could be nearly 10,000 locations.

我想深入了解一下您在美國建築領域的商業策略。看起來你現在在獨立的硬件商店和沃爾瑪都有類似的產品，使用這個 Glidden 平台。在這些與家得寶安排和您自己的商店之間，似乎可能有近 10,000 個地點。

My question for you is how would you split your sales in architectural paint in the U.S. between those various buckets? And where do you think that could go in the next few years? And could this cannibalize sales in your own stores?

我問你的問題是，你如何在這些不同的桶之間分配你在美國的建築塗料銷售額？您認為未來幾年會走向何方？這會蠶食您自己商店的銷售額嗎？

Thanks, Steve. Great question. So we don't expect cannibalization. Let me explain a little bit about what we're doing. Glidden is by far our strongest and best-known DIY brand in the U.S. And historically, despite that strong brand strength, we lacked distribution. So obviously, we partner with The Home Depot with Glidden. We're now partnering with Walmart with Glidden. And we've always partnered with our independent dealers with Glidden.

謝謝，史蒂夫。很好的問題。所以我們不期望同類相食。讓我解釋一下我們正在做的事情。 Glidden 是迄今為止我們在美國最強大和最知名的 DIY 品牌。從歷史上看，儘管品牌實力強大，但我們缺乏分銷。很明顯，我們與 The Home Depot with Glidden 合作。我們現在正與沃爾瑪合作推出 Glidden。我們一直與 Glidden 的獨立經銷商合作。

One of your points. Typically, we don't carry Glidden at our own company stores. So think about it as big box home improvement plus Walmart plus private dealers. The type of customer that buys paint at Walmart is very different than the type of customer that buys paint at The Home Depot. And so what we're really doing with these recent moves is expanding distribution and providing access to the strong DIY brand across multiple different types of consumers, multiple different price points of consumers and expanded geography.

你的觀點之一。通常，我們不會在我們自己的公司商店銷售 Glidden。所以把它想像成大型家居裝修加沃爾瑪加私人經銷商。在沃爾瑪購買油漆的顧客類型與在家得寶購買油漆的顧客類型截然不同。因此，我們最近採取的這些舉措真正在做的是擴大分銷，並在多種不同類型的消費者、多種不同的消費者價位和擴大的地域範圍內提供強大的 DIY 品牌。

So that's really what we're doing here, and there's very little conflict between those 3 pieces and certainly very little cannibalism.

所以這就是我們在這裡所做的，這三部分之間幾乎沒有衝突，當然也很少有自相殘殺。

Our next question comes from John McNulty from BMO.

我們的下一個問題來自 BMO 的 John McNulty。

Tim, your first quarter margins, I don't think we've seen them this high other than maybe twice in the last 15 years, and that's even with adding traffic solutions, which I think should be dragging it down in 1Q.

蒂姆，你的第一季度利潤率，我認為除了過去 15 年的兩次之外，我們從未見過如此高的利潤率，而且即使增加了流量解決方案，我認為這應該會在第一季度拖累它。

So I guess, one, where can we see margins go this year for PPG? And then what are some of the big factors? Is it all price versus raws? How should we think about mix, some of the efficiency measures you were speaking to? I guess can you help us to frame that a bit?

所以我想，第一，我們今年可以看到 PPG 的利潤率在哪裡？那麼一些重要的因素是什麼？都是價格與原始價格嗎？我們應該如何考慮混合，您所說的一些效率措施？我想你能幫我們構想一下嗎？

Well, we're on -- as you've heard me say, John, we are on a margin recovery journey. And as happy as we are with the 380 basis point improvement, we're pleased with that progress, but we are not satisfied with where we are. We are not back to historical levels. We've still got more work to do, and we're confident that we will continue to see improvement.

好吧，我們正在進行 - 正如你聽到我說的那樣，約翰，我們正在進行利潤率恢復之旅。正如我們對 380 個基點的改進感到高興一樣，我們對這一進展感到滿意，但我們對我們所處的位置並不滿意。我們沒有回到歷史水平。我們還有更多工作要做，我們相信我們會繼續看到改進。

This, frankly, is our second straight quarter of year-over-year margin improvement. We expect Q2 to be the third straight quarter of year-over-year margin improvement. But we've got more work to do here. And it's both on the value capture side and getting paid for the products and services that we deliver. It's mix driven. And certainly, we've begun to see some moderation on the cost side.

坦率地說，這是我們連續第二個季度實現利潤率同比增長。我們預計第二季度將是連續第三個季度實現利潤率同比增長。但我們在這裡還有更多工作要做。它既體現在價值獲取方面，也體現在為我們提供的產品和服務獲得報酬方面。它是混合驅動的。當然，我們已經開始看到成本方面有所緩和。

John, this is Vince. Just to get some more numeric guidance here. We're down still 150, 200 basis points versus our prior high-water marks, which we hit several times and -- several times in the past 10 years in the first quarter. So we have other levers. Tim mentioned one in the opening comments. We're still not back to where we want to be on manufacturing. Our volumes on a multiyear basis are still down. And again, cost control, which is a legacy here, we feel we could do better. So we still have multiple levers to get back to prior high-water marks and then eventually hoping to exceed those.

約翰，這是文斯。只是為了在這裡獲得更多的數字指導。與我們之前的高水位線相比，我們仍然下降了 150、200 個基點，在過去的 10 年中，我們在第一季度多次達到這個水平。所以我們還有其他槓桿。蒂姆在開場評論中提到了一個。我們仍然沒有回到我們想要的製造業。我們多年的銷量仍在下降。再一次，成本控制，這是這裡的遺產，我們覺得我們可以做得更好。因此，我們仍然有多個槓桿可以回到之前的高水位線，然後最終希望超過這些水平。

Our next question comes from Christopher Parkinson from Mizuho.

我們的下一個問題來自 Mizuho 的 Christopher Parkinson。

Can you just offer a little bit more color about what's embedded in both your aerospace and refinish guidance levels? Just how you're thinking about it for the year? Does aerospace include Boeing's further build rates? 737 MAX in China? Widebody? Some color on that.

您能否就您的航空航天和修補漆指導水平中嵌入的內容提供更多顏色？你是如何考慮這一年的？航空航天是否包括波音的進一步建造率？ 737 MAX在中國？寬寬的身體？一些顏色。

And then on the refinish side, just any color about how you think the body shop world, specifically in the U.S., is still dealing with labor constraints and so on and so forth. You had some pretty optimistic -- or actually, bullish comments for the second quarter. It'd just be great to know what's underscoring that in particular versus '19 levels.

然後在修補方面，關於你如何看待車身修理廠世界的任何顏色，特別是在美國，仍在處理勞動力限制等等。你對第二季度有一些非常樂觀的——或者實際上是樂觀的評論。很高興知道是什麼強調了這一點，特別是與 19 年的水平相比。

Sure. Thanks, Chris. So on the aero side, you mentioned a number of things there, and the answer would be yes to all of them. We have a number of positive catalysts there. The China reopening, even though China -- international China widebody is still well below 2019 levels, domestic travel alone drives a lot of MRO activity for us. So that, we expect to continue to grow.

當然。謝謝，克里斯。所以在航空方面，你在那裡提到了很多事情，答案都是肯定的。我們在那裡有許多積極的催化劑。中國重新開放，儘管中國——國際中國寬體機仍遠低於 2019 年的水平，但僅國內旅行就為我們帶來了大量的 MRO 活動。因此，我們希望繼續增長。

You mentioned one of our big OEM customers. You've seen their 2023 output so far is much better. So that certainly helps. We've got -- the backlog continues to grow on both OEM and aftermarket, particularly on the MRO side. So -- or I'm sorry, on the transparency side. So we've got some catch-up of that backlog built into our planning. And the military segment remains very strong.

您提到了我們的一個大 OEM 客戶。到目前為止，你已經看到他們 2023 年的產出要好得多。所以這肯定有幫助。我們已經 - OEM 和售後市場的積壓訂單繼續增長，特別是在 MRO 方面。所以 - 或者我很抱歉，在透明度方面。因此，我們已經在我們的計劃中對積壓的工作進行了一些追趕。軍事部分仍然非常強大。

So a lot of what we've got built in is the underlying demand strength, but also our ability to continue to increase our output because right now, in many parts of our business in aerospace, we can sell whatever we can produce.

因此，我們內置的很多東西是潛在的需求強度，還有我們繼續增加產量的能力，因為現在，在我們航空航天業務的許多部分，我們可以出售我們能生產的任何東西。

On the refinish side. Again, you have to take out these quarter-to-quarter fluctuations. Fundamentally, the collision business is still very strong. And so if the body shops are able to get more cars through because they're able to improve supply on parts, improve labor, we're in a much better supply situation because most of our supply dynamics are behind us. So we're really poised to capture whatever throughput output -- I'm sorry, throughput increase they're able to achieve, which they're highly motivated to do because their backlogs are so strong.

在修補方面。同樣，您必須排除這些季度間的波動。從根本上說，碰撞業務仍然非常強勁。因此，如果車身修理廠能夠通過改善零件供應、改善勞動力來生產更多汽車，那麼我們的供應狀況就會好得多，因為我們的大部分供應動力都落後了。因此，我們真的準備好捕捉任何吞吐量輸出——對不起，他們能夠實現的吞吐量增加，他們非常有動力去做，因為他們的積壓量非常大。

Just to put some numbers to the -- this is Vince. Just to put some numbers to the China aerospace opportunity. International flights to and from China are down about 70% versus prepandemic still. Domestic travel in China is down about 20% versus prepandemic. Big -- obviously big market for all the aerospace players. And again, for us, that's all opportunity in both OEM and our aftermarket business.

只是給一些數字 - 這是文斯。只是為了給中國航空航天機會提供一些數字。與大流行前相比，往返中國的國際航班仍減少了約 70%。與大流行前相比，中國的國內旅遊下降了約 20%。大 - 顯然是所有航空航天公司的大市場。再一次，對我們來說，這在 OEM 和我們的售後市場業務中都是機會。

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。

Tim, just on raw materials. What's embedded in your second half guidance in terms of declines year-over-year? And just on pricing, where are you still implementing price increases?

蒂姆，就在原材料上。就同比下降而言，您的下半年指導中嵌入了什麼？僅在定價方面，您還在哪些地方實施價格上漲？

Sure. Thanks, David. On raw materials, well, let's start with -- the high-level statement is we expect to continue to see moderation as we move through the year. And what we actually realized in Q1 was essentially flat on a year-over-year basis. We expect Q2 to be about low single digits down on a year-over-year basis. And beyond that, we expect continued further moderation, but hard to quantify the scale of that at this point because there's still so many moving parts. But that's what I would say on the raw material side.

當然。謝謝，大衛。在原材料方面，好吧，讓我們開始吧——高層聲明是我們預計在今年繼續保持溫和。我們在第一季度實際實現的同比基本持平。我們預計第二季度同比下降約個位數。除此之外，我們預計會繼續進一步放緩，但目前很難量化其規模，因為仍有許多活動因素。但這就是我在原材料方面要說的。

On the pricing side, we did achieve more pricing in Q1. We were up 8% in total. About 70% of that is carryover. We were able to achieve some additional pricing in the quarter on an incremental basis. The vast majority of that being in the Performance Coatings segment.

在定價方面，我們確實在第一季度實現了更多定價。我們總共上漲了 8%。其中大約 70% 是遺留物。我們能夠在本季度以增量方式實現一些額外的定價。其中絕大多數在高性能塗料領域。

So I think as we move forward on price, we'll comp -- we'll start to comp higher increases as we move through the year from last year, so the increments will be smaller. But we are highly confident that for Q2, Q3, Q4, we will print positive price numbers.

所以我認為，隨著我們在價格上向前邁進，我們會比較——隨著我們從去年開始的這一年，我們將開始計算更高的漲幅，所以漲幅會更小。但我們非常有信心，對於第二季度、第三季度、第四季度，我們將打印出正的價格數字。

And just a reminder, we're still at a 40-year high inflation rates in our sector, even with this moderation.

提醒一下，我們行業的通貨膨脹率仍處於 40 年來的高位，即使有這種緩和。

Our next question comes from Jeff Zekauskas from JPMorgan.

我們的下一個問題來自摩根大通的 Jeff Zekauskas。

Two-part question. So first, when you look at your auto OEM prices in the quarter, were they comparable to the industrial segment in general? That is, industrial was up, I don't know, maybe 8%? Is that what auto OEM prices did? Or were they higher or were they lower? Can you calibrate that? And second...

兩部分的問題。那麼首先，當您查看本季度的汽車 OEM 價格時，它們是否與一般工業部門具有可比性？也就是說，工業上漲了，我不知道，也許是 8%？那是汽車原始設備製造商的價格嗎？或者它們是更高還是更低？你能校準嗎？第二...

Jeff, they were certainly in line. Sorry, go ahead.

傑夫，他們當然排成一行。對不起，繼續。

Yes. I'm puzzled that your raw materials were flat year-over-year in that oil was $100 a barrel in the first quarter of '22 and propylene was $0.60 a pound. And I believe that maybe your raw materials probably peaked in the second quarter of 2022 and then came down. So like where is the inflation coming from? Or there must be something -- it seems to be unusual about your raw material basket in that it should be lower than where it was in the first quarter of last year, at least from an outside perspective.

是的。我很困惑你的原材料同比持平，22 年第一季度石油價格為每桶 100 美元，丙烯價格為每磅 0.60 美元。而且我相信，也許您的原材料可能在 2022 年第二季度達到頂峰，然後回落。那麼通貨膨脹從何而來？或者必須有一些東西——你的原材料籃子似乎不尋常，因為它應該低於去年第一季度的水平，至少從外部角度來看是這樣。

Jeff, I'm going to take the auto question. So yes, auto OEM was consistent with segment pricing, which was about that 8%. And again, I want to remind you, the vast majority of that is carryover, especially in that business. And the new pricing there, much of that was actually negotiated last year. And part of the part of the process in negotiations with auto OEMs is magnitude and timing of implementation. So that's the answers to your first question.

傑夫，我要回答自動提問。所以是的，汽車 OEM 與細分市場定價一致，約為 8%。再一次，我想提醒你，其中絕大多數是結轉，尤其是在那個行業。那裡的新定價，其中大部分實際上是去年談判的。與汽車原始設備製造商談判過程的一部分是實施的規模和時間。這就是你第一個問題的答案。

Vince, do you want to take raws?

文斯，你想生吃嗎？

Yes. Jeff, I think when you look at our raw materials, one of the things we've talked about the last several quarters was pulling that through our inventory. And if you look, we ended the year -- we talked about this in the back half of last year. We ended Q3 and Q4 with abnormally high inventory balances. We were buying raw materials where we -- when we can get them. So we have to work that inventory down. If you look at our inventory balance actually in Q1, it's still elevated relative to what our expectations are.

是的。傑夫，我認為當您查看我們的原材料時，我們在過去幾個季度中討論的其中一件事就是將其從我們的庫存中提取出來。如果你看的話，我們結束了這一年——我們在去年下半年談到了這個問題。我們以異常高的庫存餘額結束了第三季度和第四季度。我們在我們能買到的地方購買原材料。所以我們必須減少庫存。如果您實際查看我們第一季度的庫存餘額，它仍然高於我們的預期。

So it's really a matter of how we're pulling those prior purchases through our inventory and into our cost of sales. We still have some, again, inventory to work down as we get into the peak season here in Q2. And we'll see some more realized benefit once we are able to work through that inventory.

因此，這實際上是一個問題，我們如何通過我們的庫存將這些先前的購買拉到我們的銷售成本中。當我們進入第二季度的旺季時，我們仍然有一些庫存需要處理。一旦我們能夠完成該清單，我們就會看到更多已實現的收益。

Yes. Jeff, to your basket question, our raw material basket is largely what it's always been. But there are parts of that raw material basket that we're still seeing year-over-year inflation in. Pigments, additives, extenders, inorganics, a number of items where we're still seeing year-over-year increase.

是的。傑夫，關於你的籃子問題，我們的原材料籃子基本上和以前一樣。但我們仍然看到原材料籃子中的某些部分出現同比通脹。顏料、添加劑、增量劑、無機物，我們仍然看到一些項目同比增長。

Our next question comes from Vincent Andrews from Morgan Stanley.

我們的下一個問題來自摩根士丹利的文森特安德魯斯。

I'm wondering if you could just help us better understand how March went. It sounds like, obviously, it was stronger than you expected, particularly in the back half of the quarter. In which particular areas of your business did that strength came in? And if there was any particular driving force for it and whether it's continued into April so far? To the extent you have data you can share.

我想知道您是否可以幫助我們更好地了解 3 月的情況。聽起來，顯然，它比你預期的要強，尤其是在本季度的後半段。這種優勢體現在您業務的哪些特定領域？如果有任何特定的驅動力，它是否一直持續到 4 月？在您擁有可以共享的數據的範圍內。

Sure. Sure, Vincent. The parts of our business that were very strong as we moved through March, I would say, our aerospace business; our auto business, particularly Europe auto; and as Vince alluded to earlier, our Comex business was stronger than we had expected as we saw more pull-forward of the Easter campaign.

當然。當然，文森特。在我們進入 3 月份時，我們的業務部分非常強勁，我想說的是我們的航空航天業務；我們的汽車業務，尤其是歐洲汽車業務；正如 Vince 早些時候提到的那樣，我們的 Comex 業務比我們預期的要強勁，因為我們看到了復活節活動的更多推進。

And just a reminder, when we said this in January, March is typically 40%, 50% of the quarter in terms of the size of the quarter financially. So again, when we have a strong March, it's very helpful.

提醒一下，當我們在 1 月份說這個時，就本季度的財務規模而言，3 月份通常佔該季度的 40%、50%。所以，當我們有一個強勁的三月時，這又是非常有幫助的。

Our next question comes from Josh Spector from UBS.

我們的下一個問題來自瑞銀的 Josh Spector。

So I just want to poke on the guidance again for the year. So if I think about some of the onetimers in 1Q, if I say they're maybe $0.20 in EPS, seasonally adjust first half, implies the year's kind of at the midpoint of your guidance for the year about, $7.10. No incremental benefit from raw materials. And the areas where you talk about volume weakness, China housing, industrial, maybe we're talking about 20%, 25% of your sales, but you're optimistic on auto OEM, refinish, aero, which more than offsets that.

所以我只想再次戳一下這一年的指導。因此，如果我考慮 1 季度的一些一次性產品，如果我說它們的每股收益可能為 0.20 美元，上半年進行季節性調整，則意味著今年在你今年指導的中點，約為 7.10 美元。沒有從原材料中獲得增量收益。在你談論銷量疲軟的領域，中國住房、工業，也許我們談論的是你銷售額的 20%、25%，但你對汽車 OEM、修補漆、航空領域持樂觀態度，這足以抵消這一點。

So I mean, is it a fair take to look at this and say, there's really minimal benefit of raw materials in the second half, similar benefit of pricing, and you're just like pushing on where volumes are today? Or is that an entirely wrong way to look at it?

所以我的意思是，看看這個並說，下半年原材料的好處真的很少，定價的類似好處，你就像推動今天的銷量一樣公平嗎？或者這是一種完全錯誤的看待它的方式？

Well, on our second half guide, first thing I'll say is it's still 10% EPS growth Y-o-Y in an extremely challenging environment. And so I just want to lead with that.

好吧，在我們的下半年指南中，我首先要說的是，在極具挑戰性的環境中，每股收益仍同比增長 10%。所以我只想帶頭。

And most of the concern for second half is more volume focused. We're continued slowdown, U.S. housing. We've got uncertainty on the general industrial side. And really, uncertainty on the pace of recovery of industrial/manufacturing in China. So those are really the key drivers to the second half.

對下半年的關注主要集中在成交量上。我們繼續放緩，美國住房。我們在一般工業方面存在不確定性。實際上，中國工業/製造業復甦步伐的不確定性。所以這些才是下半場的關鍵驅動力。

Yes, this is Vince, I'll just add. Again, it's still cloudy when we look at the economy. We do know that most countries are raising interest rates. There's typically a delay between interest rate increases and consumer effect. We're seeing that in different parts of our portfolio around the world. So we just remain somewhat cautious on the delayed effect on that interest rate increase environment.

是的，這是文斯，我只是補充一下。同樣，當我們審視經濟時，它仍然陰雲密布。我們確實知道大多數國家都在提高利率。加息和消費者效應之間通常會有延遲。我們在世界各地投資組合的不同部分看到了這一點。因此，我們只是對加息環境的延遲影響保持謹慎。

As Tim mentioned, I'll echo, we're not sure about the pace of recovery in China. We do feel it's going to be -- our guide includes a moderate recovery, a continuing, elongated recovery. That's beneficial from our perspective because we don't see that creating more commodity inflation, but that -- the pace of that recovery is still uncertain at this time.

正如蒂姆所說，我會附和，我們不確定中國的複蘇步伐。我們確實認為它會是——我們的指南包括適度的複蘇、持續的、延長的複蘇。從我們的角度來看，這是有益的，因為我們認為這不會造成更多的商品通脹，但復甦的步伐目前仍不確定。

Our next question comes from Aleksey Yefremov from [KeyCorp].

我們的下一個問題來自 [KeyCorp] 的 Aleksey Yefremov。

In architectural in the U.S., can you share any data or sentiment from Pro paint contractors? How is the backlog changing here?

在美國的建築領域，您能否分享來自 Pro paint 承包商的任何數據或觀點？這裡的積壓如何變化？

Yes. Backlogs have remained surprisingly robust despite everything you see in the news and despite what's happening in construction, driven by labor shortages primarily. So the backlogs remain strong. And for our Pro business, the omnichannel of our Pro business was up almost 10% for the quarter. So we are seeing continued good activity in the Pro space in architectural United States.

是的。儘管你在新聞中看到了一切，儘管建築業正在發生什麼，主要是由於勞動力短缺，但積壓訂單仍然出人意料地強勁。因此，積壓訂單仍然很強勁。對於我們的專業業務，本季度我們專業業務的全渠道增長了近 10%。因此，我們看到美國建築專業領域的持續良好活動。

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。

Nice start to the year. Tim, just curious, in terms of the second half with the 10% EPS growth, I apologize if I missed this, but what do you expect for volumes? What's sort of the range of outcomes for the company? Is it down, flat, maybe even up on easy comps? Just curious.

開年不錯。蒂姆，只是好奇，就下半年每股收益增長 10% 而言，如果我錯過了這一點，我深表歉意，但你對銷量有何期待？公司的結果範圍是什麼？它是下跌，持平，甚至可能在簡單的比賽中上漲？只是好奇。

Mike, this is John. I'll take that one. So as Tim pointed, there's a few factors that we're considering in the volumes forecast that's in the guide. I would say that it's down slightly in our second half guidance, Mike, overall, based on all the feedback that Tim provided.

邁克，這是約翰。我會拿那個。正如蒂姆指出的那樣，我們在指南中的數量預測中考慮了一些因素。我會說，根據蒂姆提供的所有反饋，邁克，我們下半年的指導意見略有下降。

Our next question comes from Peter Clark from Societe Generale.

我們的下一個問題來自法國興業銀行的彼得克拉克。

Just looking at your #1 priority of getting your margin back, and particularly on the Industrial Coatings, because obviously, you were peaking at over 18%. I know there's been mix changes. You bought in lower-margin acquisitions that you're working on. But if I play with your full year guidance, you're sort of inferring this margin recovering to about 14%, ex-amortization. So you're still 400 basis points adrift.

看看你收回利潤的第一要務，尤其是在工業塗料方面，因為很明顯，你的峰值超過了 18%。我知道有混音變化。您購買了正在進行的低利潤收購。但如果我使用你的全年指導，你可以推斷出這個利潤率將恢復到 14% 左右，攤銷前。所以你仍然漂移 400 個基點。

I understand it's challenging, volumes are still not great, but is there anything structurally that stops you getting back to that sort of level in the next few years that you were achieving back in '16 and '17 level?

我知道這很有挑戰性，銷量仍然不是很好，但是在結構上有什麼能阻止你在接下來的幾年裡回到你在 16 年和 17 年達到的那種水平嗎？

Yes. Thanks for the question. There's nothing structurally preventing us from getting back to those levels. The big driver for us, I would say 2 things. Number one, volume. Volume is still down significantly from the time periods that you referenced, and so just the leverage from that. And then the other one is operating efficiencies. All of the supply chain disruptions that we've had over the last couple of years, our manufacturing costs have not been at benchmark. And you heard that we did see some improvement in that in Q1, and we're expecting further improvement as we move forward. So there's nothing structurally preventing us from getting back to peak margins in that segment.

是的。謝謝你的問題。在結構上沒有什麼能阻止我們回到這些水平。我們的主要驅動力，我會說兩件事。第一，體積。交易量仍然比您參考的時間段明顯下降，因此只是槓桿作用。然後另一個是運營效率。我們在過去幾年中遇到的所有供應鏈中斷，我們的製造成本都沒有達到基準。你聽說我們在第一季度確實看到了一些改進，我們期待在我們前進的過程中進一步改進。因此，在結構上沒有什麼能阻止我們回到該細分市場的最高利潤率。

Our next question comes from Arun Viswanathan from RBC.

我們的下一個問題來自 RBC 的 Arun Viswanathan。

Just a couple of questions around margins. It looks like your margins were up at around 13% level for EBIT in the first quarter. Do you see continued growth there? And what kind of volume growth would you expect to get that back into the mid-teens to high-teens level?

關於邊距的幾個問題。看起來你們第一季度的息稅前利潤率上升了 13% 左右。你看到那裡的持續增長嗎？您期望什麼樣的銷量增長才能使它回到十幾歲到十幾歲的水平？

Well, we absolutely expect to see continued margin growth. Arun, as I mentioned earlier, we're confident that the next couple of quarters will show continued year-over-year margin improvement.

好吧，我們絕對希望看到利潤率持續增長。 Arun，正如我之前提到的，我們相信未來幾個季度的利潤率將持續同比增長。

The volume question, as John mentioned, we're going to have volume challenges likely. Potentials for upside. But our base case is that it will be a tougher-volume second half.

正如約翰提到的那樣，體積問題，我們可能會遇到體積挑戰。上漲潛力。但我們的基本情況是，下半年將是一個更艱難的交易量。

Yes, Arun, this is Vince. If you look at some of the nearer-term levers we have, the rich mix we benefited from in Q1, we expect to continue against some of our key technology businesses, aerospace, automotive. Tim mentioned about the strength of the Mexican economy. We have leading positions in Mexico in several of our businesses, including Comex. And as Tim mentioned, we're starting to see early signs of manufacturing optimization. Still a long -- we still have a long way to go there, but that's something internally we're managing. And as I mentioned earlier, we have laser focus on our costs, especially with the volume outlook and the concern around consumer spending that I talked about earlier.

是的，阿倫，這是文斯。如果你看看我們擁有的一些近期槓桿，我們在第一季度從中受益的豐富組合，我們預計將繼續反對我們的一些關鍵技術業務，航空航天，汽車。蒂姆提到了墨西哥經濟的實力。我們在墨西哥的幾項業務中處於領先地位，包括 Comex。正如蒂姆提到的，我們開始看到製造優化的早期跡象。還有很長的路要走——我們還有很長的路要走，但這是我們內部正在管理的事情。正如我之前提到的，我們非常關注我們的成本，尤其是我之前談到的銷量前景和對消費者支出的擔憂。

Our next question comes from Kevin McCarthy from VRP.

我們的下一個問題來自 VRP 的 Kevin McCarthy。

A few questions on your auto OEM coatings business. What are you baking in for global builds in terms of your annual EPS guide? And would you also comment on any meaningful share shifts by region? And how the EV penetration is playing out for PPG.

關於您的汽車 OEM 塗料業務的幾個問題。就年度 EPS 指南而言，您為全球構建準備了什麼？您是否還會評論按地區劃分的任何有意義的份額變化？以及 PPG 的電動汽車普及率。

Sure. Thanks, Kevin. Our base case on auto OEM for the year on builds is low single digits with potential for upside, depending what happens with a whole number of things around affordability in China. But our base case is low single digits.

當然。謝謝，凱文。我們對今年汽車原始設備製造商的基本預測是低個位數，具有上行潛力，這取決於中國負擔能力方面的各種情況。但我們的基本情況是低個位數。

We have not seen a huge amount of share shift. We did see some in China. As we were executing our margin recovery strategy, we did lose some of the lower-margin business. But what's historically happened there, Kevin, is they ultimately come back for a number of reasons.

我們還沒有看到大量的份額轉移。我們確實在中國看到了一些。當我們執行我們的利潤率恢復策略時，我們確實失去了一些利潤率較低的業務。但歷史上發生的事情，凱文，他們最終會因為一些原因回來。

And third part of your question was around the EVs. What I could say on EVs is we're extremely pleased with our progress there. We're winning on EVs where EVs are winning, which is China. So we're doing well with the #1 China EV player, and they're doing well. If you look at builds now of EVs, they were up. Over 10% of global builds now are EVs. And in China, which is where we're having most of our success, over 20% now of all vehicles sold in China are EVs. So we like what we're seeing from a penetration standpoint, and we're pleased with our progress, but still a lot more to do there.

你問題的第三部分是關於電動汽車的。關於電動汽車，我能說的是我們對我們在那裡取得的進展感到非常滿意。我們在電動汽車獲勝的地方贏得了電動汽車，這就是中國。因此，我們與排名第一的中國 EV 玩家合作得很好，他們也做得很好。如果你看看現在的電動汽車，它們都在上升。現在超過 10% 的全球建築是電動汽車。在中國，這是我們取得最大成功的地方，目前在中國銷售的所有車輛中，超過 20% 是電動汽車。因此，從滲透的角度來看，我們喜歡我們所看到的，我們對我們的進展感到滿意，但還有很多工作要做。

Just to add. Again, we came into the year with a low to mid-single-digit projection on global builds for the year. Q1 was -- for the industry was 5%. So Q1 outperformed the initial projections for the industry.

只是為了補充。同樣，我們對今年的全球建設做出了低到中個位數的預測。第一季度是——這個行業是 5%。因此，第一季度的表現優於行業的最初預測。

Our next question comes from Michael Leithead with Barclays.

我們的下一個問題來自巴克萊銀行的 Michael Leithead。

Real briefly, just on North American architectural, there's obviously a few moving pieces with all the wins you flagged. So I guess, high level, what do you assume or you think the industry is growing at this year versus what do you think PPG is going to be able to grow at?

簡而言之，就北美建築而言，顯然有一些動人的作品，其中包含您標記的所有勝利。所以我想，高層，你認為或者你認為這個行業今年的增長與你認為 PPG 能夠增長的是什麼？

I think it's -- the reality is these three in totality is going to be soft, driven by what's happened on 2 fronts. Number one, housing. And number two, you still have some post-COVID hangover from the DIY side due to what everybody did, painting their houses during that period. So industry-wide, that's what we're seeing.

我認為這是——現實情況是，這三者在兩個方面發生的事情的推動下，總體上會變得疲軟。第一，住房。第二，由於每個人在那段時間粉刷房屋，DIY 方面仍然存在一些 COVID 後遺留問題。所以在整個行業範圍內，這就是我們所看到的。

For PPG, we've got a number of programs, as you say, with obviously our Walmart win, the launch of The Home Depot Pro program. Our mix, we're not as big on new build as we are on construction and maintenance. So we're thinking about it a little bit better than the rest of the industry. But driven by housing and driven by DIY, we expect this overall to be a challenging year in architectural U.S.

對於 PPG，正如您所說，我們有許多計劃，顯然我們贏得了沃爾瑪，推出了 The Home Depot Pro 計劃。我們的組合，我們在新建築上不像在建築和維護上那麼大。因此，我們對它的考慮比業內其他公司要好一些。但在住房和 DIY 的推動下，我們預計今年總體上將是美國建築業充滿挑戰的一年。

Yes. And Mike, just another reminder here. We're -- paint is typically the last part of the cycle. So as housing starts have come down the past several quarters, we're still working off those backlogs from a paint perspective.

是的。邁克，這裡只是另一個提醒。我們 - 油漆通常是周期的最後一部分。因此，隨著過去幾個季度房屋開工率的下降，我們仍在從油漆的角度處理這些積壓的訂單。

If you look at the mixture of housing starts, roughly 60% are single-family. Those have come down already. I'm not sure if they bottomed yet or not. There's some positive signs that they at least flattened. If you look at multifamily, multifamily is a still a very high record. And those will be delivered late this year or maybe early next year. And we do think there's an air pocket after that due to the credit liquidity, et cetera. Again, 60% single-family, 40% multifamily. So we haven't seen the negative effects yet in multifamily.

如果你看一下新房開工的組合，大約 60% 是單戶住宅。那些已經下來了。我不確定他們是否已經觸底。有一些積極的跡象表明它們至少趨於平緩。如果你看一下多戶型，多戶型仍然是一個非常高的記錄。這些將在今年年底或明年初交付。我們確實認為，由於信貸流動性等原因，在那之後會有一個氣穴。同樣，60% 的單戶住宅，40% 的多戶住宅。所以我們還沒有看到多戶家庭的負面影響。

Our next question comes from Laurence Alexander with Jefferies.

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

Could you just briefly flesh out your outlook for U.S. infrastructure? And particularly kind of sort of your assumptions for the back half of the year. And the landscape for -- or the pipeline for potential bolt-on M&A. And particularly, like how you're thinking about opportunities in the emerging market.

您能否簡要闡述一下您對美國基礎設施的展望？特別是你對下半年的假設。以及潛在補強併購的前景或管道。特別是，比如你如何看待新興市場的機會。

Yes. Sure, Laurence. On the outlook for infrastructure, we're quite positive on that as the infrastructure spending is starting and there's a lot more projects in the queue. And we have a number of portfolio positions that should help us there. Our Protective Coatings business, some of our Industrial Coatings business and certainly, our traffic solutions business. So we're positive on that ramping up as we move through not only this year but into the future.

是的。當然，勞倫斯。關於基礎設施的前景，我們對此非常樂觀，因為基礎設施支出已經開始，而且還有更多的項目在排隊。我們有許多投資組合頭寸可以幫助我們實現這一目標。我們的防護塗料業務、我們的一些工業塗料業務，當然還有我們的交通解決方案業務。因此，隨著我們不僅在今年而且在未來邁進，我們對這種增長持積極態度。

Yes, Laurence, on the M&A environment. Yes, I'd still say it's somewhat active, not consistent. Historically, it's been more active. There's certainly some deals or some files that are percolating of the small kind of vintage. So there's still an issue, if you're a buyer or a seller, coming up with a price based on the past 12-month financials. Again, we said many times, we would expect a few deals to get done in our space each year, and that's our same expectation this year.

是的，勞倫斯，關於併購環境。是的，我仍然會說它有點活躍，不一致。從歷史上看，它更活躍。肯定有一些交易或一些文件正在滲入小型年份。所以還有一個問題，如果你是買家或賣家，根據過去 12 個月的財務狀況得出一個價格。同樣，我們多次說過，我們希望每年在我們的領域完成一些交易，這與我們今年的期望相同。

Our next question comes from Laurent Favre from Exane BNP Paribas.

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

Two very quick questions, please. The first one is on manufacturing. Can you size that opportunity for us? And is it just about China where you see the COVID issues in the early part of Q1? Or do you also see an opportunity in Europe and U.S.?

請回答兩個非常快速的問題。第一個是製造業。你能為我們評估這個機會嗎？您在第一季度初期看到的 COVID 問題是否僅與中國有關？或者您是否也看到了歐洲和美國的機會？

And the second question was just on marine and protective. It sounds like that was a bit a surprise for you in Q1. You thought it would be down, was up. I'm just wondering if you can share a few thoughts there.

第二個問題是關於海洋和防護的。聽起來這對您來說在第一季度有點意外。你以為它會下跌，結果上漲了。我只是想知道你是否可以在那里分享一些想法。

Laurent, this is John. I'll start with the manufacturing one, and Tim will take the second part. So if you go back to January of '22, we talked about significant manufacturing challenges we had due to supply disruptions in the fourth quarter of '21. We quoted about a $0.20 EPS impact. That was the height of the impacts. And every quarter since, we've had some type of negativity.

洛朗，這是約翰。我將從製造部分開始，蒂姆將負責第二部分。因此，如果您回到 22 年 1 月，我們談到了由於 21 年第四季度供應中斷導致的重大製造挑戰。我們引用了大約 0.20 美元的每股收益影響。那是影響的高度。從那以後的每個季度，我們都有一些消極情緒。

Now this quarter, the first quarter of 2023, we were close to being breakeven on a year-over-year basis, and we expect that to get better as we go forward. So the objective is for us to claw back all of the inefficiencies that we've had in the last 5 quarters.

現在本季度，即 2023 年第一季度，我們同比接近收支平衡，我們預計隨著我們的前進，情況會變得更好。因此，我們的目標是收回我們在過去 5 個季度中遇到的所有低效率問題。

Yes, I'll take the protective and marine side. The way I think about this business right now is it's well positioned for infrastructure, near-shoring, energy, a lot of the investments that are happening around those areas. And also in marine, where we have really pivoted our focus to marine aftermarket, which is doing well. So when you add those all together, we were up high single digits in Q1, and we expect to be up mid-single digits again in Q2. So that's one of the businesses that we're pretty bullish on.

是的，我會採取保護和海洋方面。我現在對這項業務的看法是，它在基礎設施、近岸外包、能源以及圍繞這些領域進行的大量投資方面處於有利地位。在海事領域，我們確實將重點轉向了海事售後市場，該市場表現良好。因此，當你將所有這些加在一起時，我們在第一季度實現了高個位數增長，我們預計在第二季度將再次實現中等個位數增長。所以這是我們非常看好的業務之一。

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。

Congrats on the start to the year. Vince, you took a $144 million charge due to the pension benefit obligation. I'm curious as to what sort of future cost benefit might we expect from that action?

恭喜新年伊始。文斯，由於養老金福利義務，您收取了 1.44 億美元的費用。我很好奇我們希望從該行動中獲得什麼樣的未來成本收益？

And Tim, obviously, very impressive progress on price. And your expectation is that you're going to have positive price for the balance of the year. But as we see deflation from record raws, any concerns on potential price givebacks in any of your businesses?

顯然，蒂姆在價格方面取得了令人印象深刻的進步。你的期望是你將在今年餘下的時間裡獲得正價格。但是，當我們看到創紀錄的原始數據出現通貨緊縮時，您對您的任何業務中潛在的價格回饋有任何擔憂嗎？

Thanks, Frank. This is Vince. Yes, just a reminder, we do have a step up in 2023, a noncash step-up as it relates to pension expense, fairly significant, $10 million to $15 million a quarter. We did annuitize a portion of our pension plan. The benefit from that from an expense perspective is fairly minimal. It's about $1 million or $2 million a quarter. So nothing sizable relative to the step-up we've had coming into the year.

謝謝，弗蘭克。這是文斯。是的，提醒一下，我們在 2023 年確實有一個提升，一個與養老金支出相關的非現金提升，相當可觀，每季度 1000 萬至 1500 萬美元。我們確實將一部分養老金計劃年金化了。從費用的角度來看，這樣做的好處是微乎其微的。每個季度大約是 100 萬或 200 萬美元。因此，與我們進入這一年的進展相比，沒有什麼可觀的。

Yes. And Frank, on price, so on protective, we expect very little, if any, any price givebacks as we -- I'm sorry. I said protective, I meant performance. On performance in total, we expect very little giveback as we move through the year.

是的。弗蘭克，在價格方面，在保護方面，我們期望很少（如果有的話）任何價格回饋，因為我們 - 對不起。我說保護，我的意思是性能。就總體表現而言，我們預計在這一年中回報很少。

On industrial, I'll remind, about 30% of our industrial segment business, the pricing is based on index arrangements. So if there is raw material deflation, those indexes will kick in, but there's a delay of multiple quarters depending on the contract. So that's more of a '24 issue for us.

在工業方面，我提醒一下，我們大約 30% 的工業部門業務，定價是基於指數安排。因此，如果出現原材料通貨緊縮，這些指數將會生效，但根據合同的不同，會有多個季度的延遲。所以這對我們來說更像是一個 24 世紀的問題。

And beyond that, more generally, I'd say, we -- obviously, we watch this very closely every day. And churn would be our primary indicator if there's something we need to act upon. Our competitors are facing the same basic cost structure and cost inputs that we are. And we watch our churn. And to date, we've seen very little churn, as I mentioned earlier, other than a little bit in Asia.

除此之外，更一般地說，我會說，我們 - 顯然，我們每天都非常密切地關注這一點。如果我們需要採取行動，流失率將是我們的主要指標。我們的競爭對手面臨著與我們相同的基本成本結構和成本投入。我們觀察我們的流失。到目前為止，正如我之前提到的，除了亞洲有一點點，我們幾乎沒有看到客戶流失。

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。

Where within the performance segment were you able to get additional price? Or was that mix with the aerospace business just improving in the mix?

您在性能細分市場中的哪些位置可以獲得額外價格？還是與航空航天業務的組合只是在組合中有所改善？

Well, they were both factors. The mix element part of it was our aerospace business, no doubt. As the first part on where we're able to get price, we got incremental price in almost all parts of our performance segment, so architectural, refinish.

好吧，它們都是因素。毫無疑問，它的混合元素部分是我們的航空航天業務。作為我們能夠獲得價格的第一部分，我們在性能部分的幾乎所有部分都獲得了增量價格，因此建築、修補。

And I'd just remind that, while we are seeing moderation in some raw material inflation, we're still seeing inflation in wages and indirects and some raw material categories. So I'd say that incremental price was largely in response to incremental inflation.

我只是提醒一下，雖然我們看到一些原材料通脹有所緩和，但我們仍然看到工資和間接費用以及一些原材料類別的通脹。所以我想說增量價格主要是對增量通貨膨脹的反應。

Yes, John, this is Vince. Just for clarity, we -- as we break out these numbers for you guys externally, we have price separate. We put in business mix, regional mix, product mix. We combine that with volume. And if you look at both our original guide and our updated guide or updated final numbers, we benefited from incremental pricing, stand-alone pricing, so invoice pricing.

是的，約翰，這是文斯。為了清楚起見，我們 - 當我們從外部為你們分解這些數字時，我們有單獨的價格。我們進行業務組合、區域組合、產品組合。我們將其與體積相結合。如果您同時查看我們的原始指南和更新後的指南或更新後的最終數字，我們會從增量定價、獨立定價和發票定價中受益。

Secondarily and separately, we benefited from regional mix. Tim mentioned some of our business, including Latin America, were higher than our expectations. We benefited from business mix. Some of our higher technology businesses were higher than our expectation, as we called out in both of our releases. And we benefited within business from product mix. So we hit, I think, the 3 big categories for us.

其次，單獨地，我們受益於區域組合。蒂姆提到我們的一些業務，包括拉丁美洲，高於我們的預期。我們受益於業務組合。正如我們在兩個版本中所呼籲的那樣，我們的一些高科技業務高於我們的預期。我們從產品組合中受益於業務。所以我認為，我們為我們打了三大類。

Our final question today comes from Jaideep Pandya from On Field Research.

我們今天的最後一個問題來自 On Field Research 的 Jaideep Pandya。

First one, to go back to the EV point. Could you just give us some color on what is the content per vehicle for ICE versus EV? And in your top EV customers, are they all sort of the top 5 Chinese companies? That's my first question.

第一個，回到 EV 點。您能否給我們一些顏色，說明 ICE 與 EV 的每輛車的內容是什麼？在您的頂級電動汽車客戶中，他們都是排名前 5 位的中國公司嗎？這是我的第一個問題。

And the second question is on the Industrial Coatings, where you alluded to weakness in the U.S. Have you seen sort of the destocking coming to an end in Q1? Or are you expecting further destocking or weaker volumes from the coil extrusion categories in the U.S., especially in Q2 and Q3?

第二個問題是關於工業塗料，你提到了美國的疲軟。你是否看到某種去庫存在第一季度結束？或者您是否預計美國的捲材擠壓類別將進一步去庫存或銷量下降，尤其是在第二季度和第三季度？

Thanks, Jaideep. I'm going to go backwards with how you asked them. Just destocking, the -- our industrial segment businesses, there's not a tremendous amount of inventory held at our customers. And so any significant destocking, whether it's -- frankly, whether it's industrial or performance, is largely behind us.

謝謝，賈迪普。我要倒退你問他們的方式。只是去庫存，我們的工業部門業務，我們的客戶沒有大量庫存。因此，任何重大的去庫存，無論是 - 坦率地說，無論是工業還是績效，在很大程度上都已經過去了。

But the softening that we mentioned in general industrial and in particular here in the U.S. is across a couple of key segments. One of them you already mentioned, and that's coil because that's largely tied to construction. But we've also seen softness in some consumer-facing areas, electronic materials, kitchen and bakeware appliance. Fortunately, there's some positives offsetting some of that as well on HD -- heavy-duty equipment, transportation, powder. But in general, those were the segments that were a bit soft.

但我們在一般工業中提到的軟化，特別是在美國這裡，涉及幾個關鍵領域。其中一個你已經提到過，那就是線圈，因為它在很大程度上與建築有關。但我們也看到一些面向消費者的領域表現疲軟，如電子材料、廚房和烘焙用具。幸運的是，有一些積極因素也抵消了高清方面的一些影響——重型設備、運輸、火藥。但總的來說，這些部分有點軟。

On your EV question. So the content per vehicle, unfortunately, there's not a simple one-number answer to do that because it depends upon the different technologies that are adopted by each of the OEMs. But what I will tell you is that the potential content per vehicle for functional and specialty protective coatings is significant and in the same scale as the content per vehicle of conventional layering systems, which can -- that can range between $90 to $125 a vehicle.

關於你的 EV 問題。因此，不幸的是，每輛車的內容並沒有一個簡單的單一數字答案，因為它取決於每個原始設備製造商採用的不同技術。但我要告訴你的是，每輛汽車的功能性和特殊保護塗層的潛在含量非常重要，並且與每輛傳統分層系統的含量相同，後者的範圍在每輛車 90 美元到 125 美元之間。

You had a question embedded in there about who are we working with, who are we successful with in China. Generally speaking, we're working with all of the OEMs, whether it's Chinese or non-Chinese. But we have had most of our commercial success thus far with the #1 player in EVs in China.

你有一個問題是關於我們在與誰合作，我們在中國與誰一起取得成功。一般來說，我們正在與所有 OEM 合作，無論是中國的還是非中國的。但到目前為止，我們的大部分商業成功都來自中國電動汽車排名第一的廠商。

Jaideep, this is Vince. I want to go back to your industrial question and maybe broaden it a little bit. If you think about PPG, 2022 was a difficult year. We had significant exposure in Europe, where we saw the geopolitical items really affect our volumes.

Jaideep，這是文斯。我想回到你的工業問題，也許會擴大一點。如果你想想 PPG，2022 年是艱難的一年。我們在歐洲有很大的風險敞口，在那裡我們看到地緣政治因素確實影響了我們的交易量。

As everybody is fully aware, China had multiple months of shutdowns in 2022. And the U.S. was one of our most stable businesses. And Mexico and Latin America continued to grow. If you fast forward into 2023, we feel Europe stabilized, and we're able to then put our cost stewardship on that. We feel China and Asia is going to grow.

眾所周知，中國在 2022 年停工了好幾個月。而美國是我們最穩定的業務之一。墨西哥和拉丁美洲繼續增長。如果你快進到 2023 年，我們覺得歐洲已經穩定下來，然後我們就可以將我們的成本管理放在這上面。我們認為中國和亞洲將會增長。

So 2 big pieces of our portfolio pointing in the right direction as it compared to last year. And we still feel very strong about Latin America and grow, and we're seeing some softness in the U.S. in industrial, certainly in the construction markets. But we're offsetting the majority of that with aerospace and automotive, protective, as Tim mentioned.

因此，與去年相比，我們的投資組合中有兩大塊指向正確的方向。我們仍然對拉丁美洲感到非常強烈並且在增長，我們看到美國在工業方面有些疲軟，當然在建築市場也是如此。但正如蒂姆所提到的，我們正在用航空航天和汽車防護來抵消其中的大部分。

So again, I think for us, we had a difficult 2022, and we're lapping some of that in 2023. The only thing we see softening is really those pockets in the U.S.

所以，我認為對我們來說，我們經歷了艱難的 2022 年，我們將在 2023 年克服其中的一些困難。我們唯一看到軟化的是美國的那些口袋。

There are no further questions at this time. I'll now turn the call back over to John Bruno.

目前沒有其他問題。我現在將電話轉回給 John Bruno。

Thank you, Elliot. We appreciate everyone's continued interest and confidence in PPG. This concludes our First Quarter Earnings Call.

謝謝你，埃利奧特。我們感謝大家對 PPG 的持續關注和信心。我們的第一季度財報電話會議到此結束。

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。