PPG Industries Inc (PPG) 2024 Q2 法說會逐字稿

Good morning.

早安.

My name is Elliot, and I'll be your conference operator today.

我叫艾利歐特，今天我將擔任你們的會議操作員。

At this time, I would like to welcome everyone to the second-quarter PPG earnings conference call.

此時此刻，我歡迎大家參加 PPG 第二季財報電話會議。

(Operator Instructions)

（操作員說明）

So now I turn the conference over to Alex Lopez, Director of Investor Relations.

現在我將會議交給投資者關係總監 Alex Lopez。

Please go ahead, sir.

請繼續，先生。

Thank you, Elliot.

謝謝你，艾利奧特。

And good morning, everyone.

大家早安。

This is Alex Lopez, Director, Investor Relations.

我是亞歷克斯·洛佩茲，投資者關係總監。

We appreciate your continued interest in PPG and welcome you to our second-quarter 2024 financial results conference call.

我們感謝您對 PPG 的持續關注，並歡迎您參加我們的 2024 年第二季財務業績電話會議。

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

與我一起參加 PPG 電話會議的還有董事長兼執行長 Tim Knavish；以及高級副總裁兼財務長文斯莫拉萊斯 (Vince Morales)。

Our comments relate to the financial information released after US equity markets closed on Thursday, July 18, 2024.

我們的評論涉及 2024 年 7 月 18 日星期四美國股市收盤後發布的財務資訊。

We have posted detailed commentary and accompanying presentation slides on the Investor Center of our website, ppg.com. These slides are also available on the webcast site for this call and provide additional support to the opening comments Tim will make shortly.

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簡報幻燈片。這些幻燈片也可在本次電話會議的網路廣播網站上獲取，並為蒂姆很快將發表的開場評論提供額外支持。

Following management's perspective on the company's results for the quarter, we will move to Q&A session.

在管理層對公司本季業績的看法之後，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 effects on PPG's operating and financial performance.

本次電話會議期間準備的評論和討論可能包含前瞻性陳述，反映公司當前對未來事件及其對 PPG 營運和財務表現的潛在影響的看法。

These statements involve uncertainties and risks, which may cause actual results to differ.

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。

The company is under no obligation to provide subsequent updates to these forward-looking statements.

該公司沒有義務提供這些前瞻性陳述的後續更新。

The presentation also contains certain non-GAAP financial measures.

此簡報也包含某些非公認會計準則財務指標。

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.

該公司在我們網站上提供的簡報資料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較的公認會計原則財務指標的調節表。

For additional information, please refer to PPG's filings with the SEC.

如需了解更多信息，請參閱 PPG 向 SEC 提交的文件。

Now let me introduce PPG's Chairman and CEO, Tim Knavish.

現在讓我介紹一下PPG董事長兼執行長 Tim Knavish。

Thank you, Alex, and good morning, everyone.

謝謝你，亞歷克斯，大家早安。

Welcome to our second-quarter 2024 earnings call.

歡迎參加我們的 2024 年第二季財報電話會議。

I'd like to start by providing a few highlights on our second-quarter 2024 financial performance.

首先，我想介紹一下我們 2024 年第二季財務表現的一些要點。

And then I'll move to our outlook.

然後我將談談我們的展望。

The PPG team delivered sales of $4.8 billion and our seventh consecutive quarter of year-over-year segment margin improvement.

PPG 團隊實現了 48 億美元的銷售額，我們的細分市場利潤率連續第七個季度實現同比增長。

This culminated in second-quarter adjusted earnings per diluted share of $2.50, which is an all-time record for the company and represents 11% year-over-year growth.

第二季調整後每股攤薄收益達到 2.50 美元，創下該公司的歷史記錄，年增 11%。

Despite increasingly challenging macroeconomic conditions, we are building top-line momentum as our underlying year-over-year volume progression improved for the sixth consecutive quarter.

儘管宏觀經濟狀況日益嚴峻，但隨著我們的基本年銷售成長連續第六個季度改善，我們正在建立營收動力。

In the second quarter, 6 of our 10 business units delivered positive volume growth versus prior year, aided by our enterprise growth strategy initiatives.

第二季度，在我們的企業成長策略舉措的幫助下，我們 10 個業務部門中有 6 個業務部門的銷售量較上年同期實現了正成長。

These initiatives include delivering new products and technologies to our customers, such as our innovative packaging interior can and exterior end coatings technologies, as well as our new SIGMAGLIDE technology in our marine business.

這些舉措包括向我們的客戶提供新產品和技術，例如我們創新的包裝內罐和外端塗層技術，以及我們在船舶業務中的新 SIGMAGLIDE 技術。

Each of these technologies has allowed us to gain share in their respective businesses.

這些技術中的每一項都使我們能夠在各自的業務中獲得份額。

Our actions also include upgrading and modernizing our manufacturing capabilities to drive increased output, such as in aerospace, where demand has outpaced industry supply.

我們的行動還包括升級和現代化我們的製造能力，以推動產量增加，例如在航空航太領域，該領域的需求已經超過了行業供應。

One additional example of our enterprise growth strategy is where we're driving changes to the ecosystem of the business models.

我們企業成長策略的另一個例子是我們正在推動商業模式生態系統的變革。

This includes in architectural coatings, US and Canada, with our Home Depot initiative; in our Refinish business with our digital tools such as MOONWALK and LINQ; and in our traffic solutions business as we further optimize our service and supply capabilities, which are critical value drivers in this business.

這包括美國和加拿大的建築塗料，以及我們的家得寶計劃；在我們的修補漆業務中使用 MOONWALK 和 LINQ 等數位工具；在我們的交通解決方案業務中，我們進一步優化我們的服務和供應能力，這是該業務的關鍵價值驅動因素。

Additionally, our volume performance in the quarter benefited from our well-established business portfolio in Mexico, China, and India.

此外，我們本季的銷售表現得益於我們在墨西哥、中國和印度成熟的業務組合。

Overall, however, our aggregate volumes in the quarter were flat year over year, falling shy of our initial expectations as overall demand in Europe and global auto OEM production were below what we assumed in our second-quarter guidance.

然而，總體而言，我們本季的總銷量與去年同期持平，低於我們最初的預期，因為歐洲的整體需求和全球汽車原始設備製造商的產量低於我們在第二季度指導中的假設。

It is important to note that our European volumes, while still negative, improved sequentially year over year versus the first quarter.

值得注意的是，我們的歐洲銷售雖然仍然為負，但與第一季相比逐年有所改善。

Also, global industrial activity remains subdued in the quarter.

此外，本季全球工業活動依然低迷。

Consistent with our financial guidance in April, our second-quarter automotive Refinish sales were down year over year, reflecting a strong prior-year comparison and lower insurance claims.

與我們 4 月的財務指引一致，我們第二季的汽車修補漆銷售額年減，反映出與上年相比強勁且保險理賠減少。

However, we remain confident that this business will have a strong second half of 2024.

然而，我們仍然相信該業務將在 2024 年下半年表現強勁。

In the quarter, we drove further margin enhancement, and we marked our seventh consecutive quarter of year-over-year segment margin improvement.

在本季度，我們進一步提高了利潤率，並實現了連續第七個季度的部門利潤率同比改善。

Our aggregate gross margin was 43% for the quarter, a 180-basis-point improvement year over year.

本季我們的總毛利率為 43%，年增 180 個基點。

Our performance coatings segment achieved all-time record segment margin of 18.7%, and our industrial coating segment also improved its margin profile by 120 basis points versus the prior year.

我們的高性能塗料部門實現了 18.7% 的歷史最高利潤率，我們的工業塗料部門的利潤率也較前一年提高了 120 個基點。

During the second quarter, we benefited from stable, upstream, and downstream supply chains.

第二季度，我們受惠於穩定的上下游供應鏈。

And the vast majority of our suppliers have sufficient or excess capacity, which is noteworthy as this occurred during the peak season for raw material consumption.

而我們絕大多數供應商產能充足或過剩，值得注意的是，這種情況發生在原料消費旺季。

Consistent with our guidance, we experienced mid-single-digit percentage raw material deflation that we expect will normalize into flat to low-single-digit deflation for the third quarter as we anniversary prior-year impact.

與我們的指導一致，我們經歷了中個位數百分比的原材料通貨緊縮，我們預計第三季將正常化為持平至低個位數通貨緊縮，因為我們對去年的影響週年紀念。

This benefit was partially offset in our results by general inflation, including higher year-over-year wages and employee benefits.

這項收益在我們的​​業績中被整體通膨部分抵消，包括年比薪資和員工福利的上漲。

We are proud to have published our 2023 ESG report in the quarter, which highlighted progress against our 2030 targets, including increasing sales from sustainably advantaged products and reducing greenhouse gas emissions throughout our own operations and our value chain.

我們很自豪在本季度發布了2023 年ESG 報告，其中強調了我們在實現2030 年目標方面取得的進展，包括增加具有可持續優勢的產品的銷量以及減少我們整個運營和價值鏈中的溫室氣體排放。

I want to take this opportunity to provide you with an update on our previously announced strategic reviews of the architectural coatings US and Canada business and the global silica's product business.

我想藉此機會向您介紹我們先前宣布的對美國和加拿大建築塗料業務以及全球二氧化矽產品業務的策略審查的最新情況。

We made good progress with these processes and are pleased to have a number of engaged and interested parties.

我們在這些過程中取得了良好進展，並很高興有許多參與和感興趣的各方。

We're working through the traditional bidding, management presentation, and data provision stages and remain on our original schedule to determine a path forward for each of these assessments.

我們正在完成傳統的投標、管理演示和數據提供階段，並保持原來的時間表，以確定每項評估的前進路徑。

We have also made further progress in driving improvement in working capital, including lowering our year-over-year inventories during the quarter.

我們在推動營運資金改善方面也取得了進一步進展，包括本季同比庫存下降。

As a result, our operating working capital was down 90 basis points year over year.

因此，我們的營運資本較去年同期下降了 90 個基點。

We have more work to do over the balance of the year as we move towards seasonally slower sales quarters, but we have already returned to near pre-pandemic inventory levels.

隨著銷售季度季節性放緩，我們在今年剩餘時間裡還有更多工作要做，但我們已經恢復到接近疫情前的庫存水準。

We ended the quarter with a strong balance sheet to remain committed to deploy excess cash for shareholder value creation.

本季結束時，我們的資產負債表強勁，持續致力於部署多餘現金，為股東創造價值。

During the quarter, we repurchased $150 million of PPG shares, bringing our year-to-date total to about $300 million.

本季度，我們回購了 1.5 億美元的 PPG 股票，使年初至今的總額達到約 3 億美元。

This is on top of our fourth-quarter 2023 repurchases.

這是我們在 2023 年第四季回購的基礎上進行的。

Also yesterday, consistent with our long heritage, our Board authorized a $0.03 dividend increase from $0.65 to $0.68 per share.

同樣在昨天，根據我們的長期傳統，我們的董事會批准將每股股息從 0.65 美元增加到 0.68 美元，增加 0.03 美元。

Now looking ahead to the third quarter, we expect overall organic sales of flat to low single-digit percentage growth.

現在展望第三季度，我們預期整體有機銷售額將持平至低個位數百分比成長。

In Mexico, we expect to again deliver excellent financial results.

在墨西哥，我們預計將再次實現出色的財務表現。

We also believe that demand in China will deliver organic growth as a result of our technology-advantaged products, but albeit at a lower growth rate than achieved in the first half of the year.

我們也相信，由於我們的技術優勢產品，中國的需求將帶來有機成長，但成長低於上半年。

In Europe, demand remains uneven by country and end use, but we expect modest sequential year-over-year improvement.

在歐洲，不同國家和最終用途的需求仍然不平衡，但我們預計將比去年同期略有改善。

In addition to those businesses that grew in the second quarter, we expect organic growth in automotive Refinish coatings and protective and marine coatings.

除了第二季成長的業務外，我們預計汽車修補漆以及防護和船舶塗料也將實現有機成長。

And also, while slightly unfavorable year-over-year, we are expecting -- projecting modest sequential quarterly improvement in general industrial demand.

此外，雖然同比略有不利，但我們預計一般工業需求將出現季度環比小幅改善。

We expect to deliver adjusted third-quarter EPS between $2.10 and $2.20 per share aided by solid operating performance.

由於穩健的經營業績，我們預計第三季調整後每股收益將在 2.10 美元至 2.20 美元之間。

Our guidance midpoint is 4% higher than our record third quarter 2023.

我們的指導中點比創紀錄的 2023 年第三季高出 4%。

However, the midpoint of our guidance is 10% higher than the third quarter of '23, excluding the impact of a higher year-over-year tax rate as the prior year included several non-recurring favorable discrete tax items.

然而，我們的指導中位數比 2023 年第三季高 10%，不包括同比稅率較高的影響，因為前一年包括幾個非經常性優惠離散稅收項目。

The difference in the tax rate is reducing our year-over-your EPS comparison by approximately $0.12 at the midpoint.

稅率的差異使我們的每股盈餘同比中點減少了約 0.12 美元。

We anticipate overall company selling prices to be flat in the third quarter as the impact of certain index-based customer contracts in our industrial coding segment will be offset by selling price increases in our performance coding segment, including some additional incremental pricing that will be realized in the third quarter.

我們預計第三季公司整體銷售價格將持平，因為我們的工業編碼部門中某些基於指數的客戶合約的影響將被我們的性能編碼部門的銷售價格上漲所抵消，包括將實現的一些額外的增量定價在第三季。

With regard to commodity raw materials, supply remains ample, and we continue to realize benefits for moderating input costs.

大宗商品原料供應仍充足，投入成本下降效益持續顯現。

In the third quarter, we expect flat to low single-digit percentage raw material deflation, lower than the second quarter as we anniversary some decrease realized in 2023.

我們預計第三季度原物料通貨緊縮百分比將持平至低個位數，低於第二季度，因為我們在 2023 年實現了一些下降。

As we have consistently demonstrated, we will drive further improvement of our operating margins aided by sales volume growth leverage as a result of the execution of our enterprise growth strategy and self-help in manufacturing productivity and cost-control initiatives, which includes continued execution of our previously approved restructuring actions.

正如我們一貫所證明的那樣，我們將透過執行企業成長策略以及自助製造生產力和成本控制措施（其中包括繼續執行我們先前批准的重組行動。

Our more than 50,000 employees are committed to delivering best-in-class solutions to our customers that will drive growth for PPG.

我們的 50,000 多名員工致力於為客戶提供一流的解決方案，從而推動 PPG 的成長。

Our results this quarter were made possible by our highly dedicated team around the world who make it happen and deliver on our purpose to protect and beautify the world every day.

我們本季的業績是由我們遍布世界各地的高度敬業的團隊實現的，他們實現了這一目標，並實現了我們每天保護和美化世界的目標。

Thank you for your continued confidence in PPG.

感謝您對 PPG 的持續信任。

This concludes our prepared remarks.

我們準備好的演講到此結束。

And now, would you please open the line for questions.

現在，請您開通提問專線。

(Operator Instructions) John McNulty, BMO.

（操作員說明）John McNulty，BMO。

Yes, good morning.

是的，早安。

Thanks for taking my question.

感謝您提出我的問題。

So I guess maybe the first one would just be on the US-Canada architectural review.

所以我想也許第一個就是美國-加拿大建築審查。

It sounds like you're getting a reasonable amount of interest.

聽起來您獲得了合理的興趣。

Would you say that that's increasing the likelihood of a sale versus some of the other avenues, JVs, partnerships?

您是否認為與其他一些途徑、合資企業、合作夥伴關係相比，這會增加出售的可能性？

I think you kind of said at the beginning of all this, any option is open, but it sounded like a sale was the preference.

我想你在這一切開始時就說過，任何選擇都是開放的，但聽起來像是出售是首選。

Would you say there's a high likelihood of this ending up being a sale?

您認為這最終成為銷售的可能性很高嗎？

Hey, John, thanks for the question.

嘿，約翰，謝謝你的提問。

We're very pleased with the level of interest in the architectural US-Canada business, and I will say that level of interest has great diversity across the scenarios that may end up the being the final path forward.

我們對美國-加拿大建築業務的興趣程度感到非常滿意，我想說的是，興趣程度在不同場景中具有很大的多樣性，最終可能成為最終的前進道路。

So it is it's just too early at this point to say which one of those is kind of leading the pack as we've had really good interest in a number of different scenarios from full sale to JV and other forms of partnerships.

因此，現在判斷哪一個處於領先地位還為時過早，因為我們對從全面出售到合資和其他形式的合作夥伴關係等許多不同的場景非常感興趣。

So it's just too early, John, but we are making good progress.

所以現在還為時過早，約翰，但我們正在取得良好進展。

Hey, John, this is Vince.

嘿，約翰，這是文斯。

As we said -- as Tim said in the opening remarks, we're in the normal process working with these interested parties, working with our bankers, having traditional management meetings, et cetera.

正如我們所說 - 正如蒂姆在開場白中所說，我們正在正常流程中與這些感興趣的各方合作，與我們的銀行家合作，舉行傳統的管理會議等等。

So we remain on our original schedule to determine a path forward.

因此，我們仍按原來的時間表確定前進的道路。

Duffy Fischer, Goldman Sachs.

達菲費雪，高盛。

Yes.

是的。

Good morning, guys.

早上好傢伙。

Question on auto OEM.

關於汽車OEM的問題。

So the numbers you put up were worse than if we're looking at just the global auto builds, S&P or IHS.

因此，您提供的數字比我們僅關注全球汽車製造、標準普爾或 IHS 的數字還要糟糕。

So is that a customer footprint issue?

那麼這是客戶足跡問題嗎？

Is it a de-stocking by the customer first?

是顧客先去庫存嗎？

And then do we need the anniversary of that?

那我們需要周年紀念日嗎？

Are there two more quarters after this that are going to kind of be down high single digits to get to a new level of run rate?

此後的兩個季度是否會出現高個位數的下降，以達到新的運行率水平？

Hey, Duffy.

嘿，達菲。

Thanks for the question.

謝謝你的提問。

Our numbers, our projections may have been a bit different than what you're seeing from some of the kind of global services, service providers.

我們的數字、我們的預測可能與您從某些全球服務、服務提供者看到的有所不同。

A couple of things there.

有幾件事。

We do have a very strong position in Europe, which was down more than average.

我們在歐洲的地位確實非常強大，但下降幅度超過了平均值。

And also, our projections, while services maybe are looking more at macros, our projections for Q3 in particular are based on what we actually see in specific assembly plan schedules at the plants that we serve.

此外，我們的預測雖然服務業可能更關注宏觀因素，但我們對第三季的預測尤其是基於我們在我們服務的工廠的具體裝配計劃時間表中實際看到的情況。

And a number of them have increased, just very recently increased their summer downtimes.

其中一些已經增加，只是最近增加了夏季停機時間。

So that may have a disproportionate impact versus what you may be seeing publicly.

因此，與您公開看到的情況相比，這可能會產生不成比例的影響。

And then finally, I'd say, as you know, we have a very strong position in China.

最後，我想說，如您所知，我們在中國擁有非常強大的地位。

And we did see a step down in China production plans as soon as the EV tariffs were announced, and I think some of our customers are playing it cautious here until they see how that scenario plays out.

一旦電動車關稅宣布，我們確實看到中國的生產計劃下降，我認為我們的一些客戶在這裡持謹慎態度，直到他們看到這種情況如何發展。

Because as you know, particularly the largest producer there is exporting quite a bit there.

因為如您所知，特別是最大的生產商在那裡出口大量產品。

So.

所以。

We do think that's a transitory item that will play out.

我們確實認為這是一個暫時的項目，將會發揮作用。

Yes.

是的。

And Duffy, this is Vince.

達菲，這是文斯。

Just a point of clarification on our materials, we provide organic sales numbers, which for us includes volume and price.

只是對我們的材料進行澄清，我們提供有機銷售數據，其中包括數量和價格。

As we've alluded to many times this year, in this business and in our industrial segment, we have index-based pricing.

正如我們今年多次提到的，在這個業務和我們的工業領域，我們採用基於指數的定價。

So excluding price, we're much closer to the service provider numbers that you alluded to it in your question.

因此，排除價格之外，我們更接近您在問題中提到的服務提供者數量。

So you have to bifurcate price versus volume.

因此，你必須將價格與數量分開。

Ghansham Panjabi, Baird.

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

Yes, good morning.

是的，早安。

Thank you.

謝謝。

Tim, can you give us a bit more color on the volume trend line in Europe during the second quarter?

提姆，您能給我們更多關於第二季度歐洲成交量趨勢線的資訊嗎？

You mentioned it was a bit below your forecast.

您提到這有點低於您的預測。

Which specific businesses perhaps were a little bit below?

哪些具體業務可能稍微低於？

I think you call that auto OEM.

我想你稱之為汽車原始設備製造商。

And then secondly, in terms of the flattish volumes on a consolidated basis year over year for 2Q and the margin improvement, which is quite significant, can you just give us some of the high-level drivers of that?

其次，就第二季的綜合銷售量與去年同期持平以及利潤率的改善而言，這是相當顯著的，您能給我們一些高層驅動因素嗎？

Sure, Ghansham.

當然，甘沙姆。

Thank you for the questions.

謝謝你的提問。

Yes, the volume trend in Q2 did play out a little worse than we expected, particularly at the end of the quarter.

是的，第二季的銷售趨勢確實比我們預期的要差一些，特別是在季度末。

June in particular was soft, largely driven by what I just said on Duffy's questions that certain assembly plants started to add additional down weeks.

六月尤其疲軟，這主要是由於我剛才在達菲的問題上所說的，某些組裝廠開始增加額外的停工週數。

And that affected US and Europe.

這影響了美國和歐洲。

So that was one thing that played out.

這就是發生的一件事。

The other one is the Deco business in Europe, softer than we expected, again, particularly in the last month of the quarter.

另一個是歐洲的裝飾業務，再次低於我們的預期，特別是在本季的最後一個月。

A little more color there.

那裡顏色多一點。

We're very strong in France. and that's one of our larger countries for sales.

我們在法國非常強大。那是我們銷售量較大的國家之一。

And as you know, that had some unique situations going on there.

如您所知，那裡發生了一些獨特的情況。

So that did slow down for us in June.

所以六月我們的速度確實放緩了。

But interestingly, a subset of the Europe story is, Eastern Europe has been stronger than expected, where we actually also have a very strong position in countries like Poland and others.

但有趣的是，歐洲故事的一個子集是，東歐比預期更強大，我們實際上在波蘭和其他國家也擁有非常強大的地位。

So it was really those two businesses in Europe that trended downward as the quarter progressed.

因此，隨著本季的進展，歐洲的這兩項業務確實呈下降趨勢。

Then the overall volume being flat versus what we had previously said was really driven globally by auto and locally in Europe by architectural.

然後，與我們之前所說的相比，整體銷量持平，這實際上是全球範圍內由汽車推動的，而歐洲本地則由建築推動的。

Those were the two big ones.

這是兩個大的。

But as I said in my opening remarks, we have been improving sequentially over the last six quarters.

但正如我在開場白中所說，我們在過去六個季度中一直在不斷進步。

If you go back to end of '22, we were down negative 5% in volume.

如果你回到 22 年底，我們的銷量下降了負 5%。

And that has steadily improved to where we were printing flat this quarter.

這一情況已穩步改善至本季持平的水平。

And also, in my remarks, I said there were 6 out of 10 businesses that were positive volume for us.

而且，在我的演講中，我說十分之六的業務對我們來說是正面的。

Just to give you some context there, last year, that was 3 out of 10.

只是為了給您一些背景信息，去年，這是十分之三。

So we went from 3 out of 10 to 6 out of 10, and we're planning on 8 out of 10 in Q3 being positive.

因此，我們從十分之 3 變為十分之 6，並且我們計劃在第三季將十分之 8 的結果呈陽性。

So a little under where we wanted to be for Q2, largely driven by end of quarter in those two businesses, but we feel good about the momentum, Ghansham.

因此，第二季度的業績略低於我們的預期，主要是由這兩項業務的季度末推動的，但我們對這一勢頭感到滿意，Ghansham。

Chris Parkinson, Wolfe Research.

克里斯帕金森，沃爾夫研究中心。

Great.

偉大的。

Good morning, everybody.

大家早安。

I don't think any of us are really going to doubt that the macro has been a little bit choppier than most were anticipating into the second quarter.

我認為我們中沒有人會真正懷疑第二季度的宏觀經濟狀況比大多數人預期的要波動一些。

But Tim, you've been really focusing on the portfolio and your ability to outgrow certain end markets.

但是蒂姆，您一直非常關注產品組合以及超越某些終端市場的能力。

I know it's still a bit early and perhaps tough to tell, but what would be, at this juncture, the two to three end markets where you are by far and away the most comfortable in PPG's ability to consistently outperform market growth rates?

我知道現在還為時過早，也許很難說，但在這個時刻，您對 PPG 持續跑贏市場增長率的能力最滿意的兩到三個終端市場是什麼？

Thank you.

謝謝。

Yes.

是的。

Hey, Chris, thanks for the question.

嘿，克里斯，謝謝你的提問。

Number one, aerospace.

第一，航空航天。

We're really just -- as I've said for the last several quarters, everything we can make is sold and shipped.

我們真的只是——正如我在過去幾季所說的那樣，我們能生產的所有東西都被出售和運輸。

We're adding capacity.

我們正在增加容量。

We're improving productivity.

我們正在提高生產力。

We've improved output in this past quarter.

上個季度我們的產量有所提高。

So we're selling more, and we'll continue to outperform.

因此，我們的銷量正在增加，我們將繼續跑贏大盤。

Despite the -- I always say that with Refinish, you really have to look over a full-year basis with this business, because you always have order pattern issues from the distributors around the world.

儘管——我總是說，對於修補漆，你確實必須審視這項業務的全年情況，因為你總是會遇到來自世界各地經銷商​​的訂單模式問題。

Refinish, we continue to gain share in Refinish by execution of our digital systems, which have been widely accepted and embraced, and we keep adding to that toolbox of new digital tools, Chris.

修補漆，我們通過執行我們的數位系統繼續獲得修補漆市場的份額，這些系統已被廣泛接受和接受，並且我們不斷添加新的數位工具工具箱，克里斯。

So I feel really good about that business.

所以我對這項業務感覺非常好。

Packaging, outperforming from a volume standpoint and we still haven't launched everything that we've won in the last few quarters.

從銷售的角度來看，包裝表現出色，但我們仍然沒有推出過去幾季贏得的所有產品。

Traffic, although not our biggest business -- I want to point to a business that the first couple of years, I would say we cleaned up that business.

流量，雖然不是我們最大的業務——我想指出前幾年我們清理了該業務的業務。

And now we're in a position where it is really starting to perform for us.

現在我們正處於一個真正開始為我們發揮作用的位置。

Other businesses vary very much by specific region, but those would be the four that overall, I would say, were outperforming.

其他業務因特定地區而異，但我想說的是，總體而言，這四家業務表現出色。

But I do want to point out three other things.

但我確實想指出另外三件事。

Aggregate Mexico, just Mexico across the board, whether it's PPG Comex or our industrial segment businesses or protective and coatings, protective marine, we're outperforming Mexico.

墨西哥整體而言，無論是 PPG Comex 還是我們的工業部門業務，還是防護和塗料、防護海洋業務，我們的表現都優於墨西哥。

Aggregate China, of course with excluding Deco where we don't play, aggregate China, we're outperforming.

綜合中國，當然排除我們不參加比賽的德科，綜合中國，我們的表現優於其他球隊。

Aggregate India, except for Deco where we don't play, we're outperforming.

印度整體來說，除了我們不參加比賽的德科外，我們的表現都比較出色。

So that's how I would describe the businesses that I feel most confident about our overperformance going forward, Chris.

這是我對我對我們未來的超常表現最有信心的業務的描述，克里斯。

David Begleiter, Deutsche Bank.

大衛‧貝格萊特，德意志銀行。

Thank you.

謝謝。

Good morning.

早安.

Tim, as you go through the review of the US paint business, will you see any disruptions to the business?

提姆，當您回顧美國塗料業務時，您會發現業務受到任何干擾嗎？

In particular, are you seeing any market share losses as -- due to challenges or disruptions in the business?

特別是，您是否認為由於業務挑戰或中斷而導致市場份額損失？

Thank you.

謝謝。

Hey, Dave.

嘿，戴夫。

We had a very good quarter in that business.

我們在該業務中度過了一個非常好的季度。

So of course, that was something that -- we had some concerns about it as we announced it.

當然，當我們宣布這一消息時，我們對此有些擔憂。

But internally, the team has done a really good job working with our employees, our customers, our distribution partners in the private dealer space, our big box customers.

但在內部，該團隊與我們的員工、客戶、私人經銷商領域的經銷合作夥伴以及我們的大型客戶合作得非常好。

We had a good quarter in that business, mid single-digit growth.

我們在該業務中度過了一個不錯的季度，實現了中等個位數的成長。

And it's something we're watching and monitoring very closely and trying to stay ahead of it.

我們正在密切關注和監控這一點，並努力保持領先地位。

I'd say the team did a really good job in Q2 of doing that, and we're expecting the same in Q3.

我想說，團隊在第二季做得非常好，我們期望第三季也能做到這一點。

There's lots of discussions.

有很多討論。

Of course, there's some anxieties, but so far, that has not had any kind of sizable impact on the financial results.

當然，存在一些擔憂，但到目前為止，這還沒有對財務表現產生任何重大影響。

John Roberts, Mizuho.

約翰·羅伯茨，瑞穗。

Thank you, Tim.

謝謝你，提姆。

Are you still on track with the silica sale as well?

您還在進行二氧化矽銷售嗎？

And how do you feel about the rest of the specialty materials portfolio?

您對特種材料產品組合的其他部分有何看法？

Yes, John.

是的，約翰。

Thanks for the question.

謝謝你的提問。

Silicas, we're very much on track with that, maybe even a little ahead of where we are on architectural US and Canada.

Silicas，我​​們在這方面非常順利，甚至可能比我們在美國和加拿大的建築方面領先一點。

We've had good interest there as well, and let's just say we're on our original schedule.

我們也對那裡很感興趣，我們只能說我們正在按照原來的計劃進行。

The rest of that specialty business we really like, and here's why.

我們非常喜歡其他專業業務，原因如下。

Because we have a leadership position in those spaces, and they're high-technology spaces, which is right in our wheelhouse from a R&D capability standpoint.

因為我們在這些領域處於領先地位，而且它們是高科技領域，從研發能力的角度來看，這正是我們的優勢。

Obviously, not the biggest part of our portfolio, but that business was one of the good growth engines for us in Q2.

顯然，這不是我們投資組合中最大的部分，但該業務是我們第二季良好的成長引擎之一。

We expect that to continue going forward, so they're good businesses for us.

我們預計這種情況會繼續發展，所以它們對我們來說是很好的業務。

Stephen Byrne, Bank of America Merrill Lynch.

史蒂芬伯恩，美銀美林。

Yes, thank you.

是的，謝謝。

Tim, if you had a clean slate of how to report your financials -- you have these 10 businesses.

提姆，如果您對如何報告財務狀況有清晰的了解，那麼您就有了這 10 家企業。

You have some looming divestitures.

你有一些迫在眉睫的資產剝離。

If you were to report that network of businesses, would you choose two segments, and would you allocate them the way they're currently arranged?

如果您要報告該業務網絡，您會選擇兩個細分市場，並會按照當前的安排方式分配它們嗎？

Or would you consider going down a path of either more segments or reporting revenue by business, something to drive more transparency?

或者您會考慮走更多細分市場或按業務報告收入的道路，以提高透明度？

Hey, Steve.

嘿，史蒂夫。

It is something I've been giving a lot of thought to, and we'll continue to think about it and see what things look like post-architectural USCA.

這是我一直在思考的事情，我們將繼續思考它，看看後建築 USCA 是什麼樣子。

But high level, we have a group of businesses that essentially deliver factory to factory, pure B2B type of businesses where they go from our factory to an assembly plant or our factory directly to a paint shop of some kind.

但從高層次來看，我們有一群企業，基本上是從工廠到工廠，純粹的 B2B 類型的企業，他們從我們的工廠到組裝廠，或是從我們的工廠直接到某種塗裝車間。

And that's a logical fit because they have a lot of synergies, synergies in operations, synergies in raw materials, synergies in supply chain and logistics, and synergies in science and technology.

這是一個合乎邏輯的契合，因為它們有很多協同效應，營運協同，原材料協同，供應鏈和物流協同，以及科技協同。

We have another group of businesses that largely goes through distribution and has a lot of value-add services that are a key part of the value proposition like aerospace, like Refinish, and like protective.

我們還有另一組業務，主要透過分銷，並提供許多增值服務，這些服務是價值主張的關鍵部分，例如航空航天、修補漆和防護等。

So high level, I'm comfortable with it, but it's something we do look at on a regular basis.

如此高的水平，我對此感到滿意，但這是我們定期關注的事情。

And we'll take a fresh look once this transaction is done.

一旦這筆交易完成，我們將重新檢視。

But I'm pretty comfortable with how we report today.

但我對我們今天的報道方式感到非常滿意。

Vincent Andrews, Morgan Stanley.

文森安德魯斯，摩根士丹利。

Thank you and good morning.

謝謝你，早安。

In our model, if we look out into 2025, we start to see raw materials move up probably low single digits in the first half of next year.

在我們的模型中，如果我們展望 2025 年，我們會開始看到明年上半年原物料價格可能會出現較低的個位數上漲。

So is that something you'll look to get ahead of from a pricing perspective in the back half of the year, or will you take more of a wait-and-see approach?

那麼，您是否會在今年下半年從定價角度尋求提前實現這一目標，還是會採取更多觀望態度？

And are there any parts of the business where if we forget about Refinish and aero or you have well-defined pricing power, are there any parts of the business, maybe auto OEM where you're a little more concerned about being able to pass that through?

如果我們忘記了修補漆和航空航天，或者您擁有明確的定價能力，那麼業務的任何部分是否有，您更關心是否能夠通過該業務的任何部分，也許是汽車原始設備製造商通過？

Yes.

是的。

Hey, Vincent.

嘿，文森特。

So what I would say at a very high level is there's sufficient capacity out there across the supply chain.

因此，我想說的是，在一個非常高的層面上，整個供應鏈都有足夠的產能。

Because if you look at the total industry of coatings, we're producing less liters than we did pre-COVID.

因為如果你看看整個塗料產業，我們的產量比新冠疫情之前還要少。

And so there's high level.

所以水平很高。

There's still quite a bit of capacity out there.

那裡還有相當多的容量。

Of course, we do what we can to get ahead of it.

當然，我們會盡我們所能來搶先一步。

And you pointed to some places where we can get ahead of it.

您指出了一些我們可以領先的地方。

The other businesses, largely the industrial segment, it's typically more real time.

其他業務，主要是工業領域，通常更加即時。

And in some cases, as you know, businesses are able to get pricing faster than others.

如您所知，在某些情況下，企業能夠比其他企業更快地獲得定價。

And as we discussed during the last inflationary cycle, auto OEM is typically the slowest, but we eventually get there just like we did last cycle.

正如我們在上一個通膨週期中討論的那樣，汽車原始設備製造商通常是最慢的，但我們最終會像上一個週期一樣到達那裡。

So I would expect that to play out the same in any cycle that may be on the horizon, whether it's next year or the following year.

因此，我預計，無論是明年還是後年，任何可能即將出現的周期都會出現同樣的情況。

Michael Sison, Wells Fargo.

麥可西森，富國銀行。

Hey, good morning.

嗨，早安。

Can you maybe talk a little bit about the profitability at US architectural paints?

您能談談美國建築塗料的獲利能力嗎？

Has there been any improvement over the last year?

與去年相比有什麼進步嗎？

Maybe what type of growth you think that business will generate in the second half?

也許您認為下半年業務會產生什麼樣的成長？

And then finally, Tim, when you think about the full sale, JV, or partnership, how are you thinking which one would be the best transaction for shareholders?

最後，提姆，當您考慮全面出售、合資或合作時，您如何認為哪一種交易對股東來說是最好的交易？

Well, we -- the best transaction for shareholders will come down to two pieces.

好吧，對股東來說，最好的交易將分為兩個部分。

One is, what are the proceeds?

一是收益是多少？

What do we get paid for what we're selling?

我們銷售的產品能得到什麼報酬？

And two, what's the long-term strategic value of anything we might be left with?

第二，我們可能留下的任何東西的長期戰略價值是什麼？

So that's why it's really hard for me or any of us to say here's the best shareholder value proposal right now because the combination of those two, price, proceeds, and future value of anything we might be left with, we're just not there yet in the process.

因此，這就是為什麼我或我們中的任何人都很難說這是目前最好的股東價值提案，因為這兩者的結合，價格，收益以及我們可能留下的任何東西的未來價值，我們只是不在那裡但在這個過程中。

But that's how we're thinking about it.

但這就是我們的想法。

It is a combination of shareholder value today for what we get and shareholder value for future for how it fits with our growth strategy and what we can expect from an earnings and cash flow on the long term.

它是我們今天所獲得的股東價值和未來股東價值（它如何適合我們的成長策略）以及我們對長期收益和現金流的預期的結合。

Yes, Mike, on current events, look, as Tim just said in an earlier question, business is performing well.

是的，麥克，就當前事件而言，正如蒂姆在之前的問題中所說，業務表現良好。

Volumes are a key driver to profitability.

銷售量是獲利能力的關鍵驅動因素。

Our volumes were up in Q2 as we said in the prepared remarks, so we're pleased with the progress year to date.

正如我們在準備好的評論中所說，我們的銷量在第二季度有所增加，因此我們對今年迄今為止的進展感到滿意。

Frank Mitsch, Fermium Research.

弗蘭克米奇，費米研究中心。

Good morning.

早安.

And congrats, Alex, on your new role.

恭喜亞歷克斯擔任新角色。

Tim, I want to ask you about the expectations for the second half to be lower than you previously thought, which resulted in the full-year EPS guide down.

提姆，我想問您對下半年的預期低於您先前的預期，這導致全年每股盈餘指引下降。

I'm just curious, roughly, what was the -- when you think back three months ago or even six months ago when you first put out the full-year projection, what sort of level of volume growth were you expecting in the second half of the year?

我只是粗略地好奇，當你回想三個月前甚至六個月前，當你第一次發布全年預測時，你預計下半年的銷量增長水平是多少今年？

And where are you now in terms of expectations on volume growth for the second half of the year?

您現在對下半年銷售成長的預期如何？

And I know that part of the reduction is tied to auto OEM.

我知道部分削減與汽車原始設備製造商有關。

And you said that you've been surprised by the extension of the assembly plant downtime.

您說您對組裝廠停機時間的延長感到驚訝。

Just curious, looking back in PPG's history, when you've been surprised in the past by the auto OEMs taking extended assembly plant downtime, does that serve as any sort of a foreshadowing of recessionary environments or anything like that?

只是好奇，回顧 PPG 的歷史，當你過去對汽車原始設備製造商延長裝配廠停工時間感到驚訝時，這是否預示著經濟衰退或類似的情況？

Any color there would be very helpful.

任何顏色都會非常有幫助。

Thank you.

謝謝。

Hey, Frank.

嘿，弗蘭克。

So first of all, what changed from what we were saying about the full year to what we're saying today, it's largely a couple of big businesses like auto global and architectural Europe.

首先，從我們所說的全年情況到我們今天所說的變化，主要是汽車全球和建築歐洲等幾家大企業。

And of course, the other businesses are puts and takes, some up, some down.

當然，其他業務也有漲有跌。

So that's really the biggest driver.

所以這確實是最大的驅動力。

And to your second question, I'm not using the recession word at all.

關於你的第二個問題，我根本沒有使用衰退這個詞。

What I see more is temporary adjustments at assembly plants just given vehicles -- some certain vehicles selling less than they expected and inventories going up a little bit.

我看到更多的是裝配廠剛剛給車的臨時調整——某些車輛的銷售低於預期，庫存略有增加。

Inventories are still very healthy compared to pre-COVID levels, but if you look at US inventories, they did creep up a little bit.

與新冠疫情爆發前的水平相比，庫存仍然非常健康，但如果你看看美國的庫存，你會發現它們確實略有上升。

So I think there's just some adjustment.

所以我認為只需進行一些調整即可。

There's caution from our customers on affordability, interest rates, things that really drive some of the vehicle purchase behavior by consumers.

我們的客戶對負擔能力、利率以及真正推動消費者購買汽車行為的因素持謹慎態度。

You probably have your own prediction on interest rates.

您可能對利率有自己的預測。

I have mine, but at some point, that should be a pressure that comes off of new car purchases.

我有我的，但在某些時候，這應該是購買新車的壓力。

And I think our customers are just watching the same things very closely, inventories versus affordability and interest rates.

我認為我們的客戶只是非常密切地關注同樣的事情，庫存與承受能力和利率。

But I do not see this as foreshadowing of a recession of any kind.

但我並不認為這是任何形式的衰退的預兆。

Patrick Cunningham, Citigroup.

派崔克‧坎寧安，花旗集團。

Hi, good morning.

早安.

I'm just curious on your optimism for the Refinish outlook for the second half.

我只是好奇您對下半年修補漆前景的樂觀態度。

Which regions do you expect to see the most meaningful growth?

您預計哪些地區將出現最有意義的成長？

And how much of a role will MOONWALK and LINQ play for organic growth?

MOONWALK 和 LINQ 將在有機成長中發揮多大作用？

And are you seeing anything in terms of data points or anything, order books, that gives you confidence in the underlying market growth in the back half?

您是否看到數據點或訂單簿方面的任何內容，讓您對下半年的基本市場成長充滿信心？

Yes, Patrick.

是的，派崔克。

So I'd say the biggest confidence point for us is really everywhere outside of Europe, where we're really still in the very early innings of launching our productivity digital ecosystem.

因此，我想說，對我們來說最大的信心點實際上是歐洲以外的任何地方，在那裡我們確實仍處於推出生產力數位生態系統的早期階段。

We started that in Europe, gained tremendous share and customer retention and subscription revenue as we launched that across Europe.

我們從歐洲開始，隨著我們在整個歐洲推出該服務，獲得了巨大的市場份額、客戶保留率和訂閱收入。

And we're still very early days in the US, Australia, China, places like that.

在美國、澳洲、中國等地，我們還處於早期階段。

So good confidence in the share gain as we roll out those tools around the world.

當我們在世界各地推出這些工具時，我們對份額成長充滿信心。

The collision rates are a question mark, depending on where you are around the world.

碰撞率是一個問號，取決於您在世界各地的位置。

But we believe our penetration rates of these digital ecosystems is still single digits of all the body shops out there.

但我們相信，與所有車身修理廠相比，我們對這些數位生態系統的滲透率仍然是個位數。

So we've still got a lot of runway.

所以我們還有很多跑道。

And as I said in my -- in an earlier answer, we continue to add to that toolbox of digital productivity tools as we go forward.

正如我在先前的回答中所說，隨著我們的前進，我們將繼續添加數位生產力工具的工具箱。

So it is, of course, the chemistry inside the can, which we're best in class at from color match and speed and all those things.

當然，這就是罐內的化學反應，從顏色匹配和速度等所有方面來看，我們在同類中是最好的。

So we feel really good about that, but a lot of our share gain right now is delivered by the productivity tools outside the can.

因此，我們對此感覺非常好，但目前我們的大部分份額成長都是由罐外的生產力工具帶來的。

And just to get to your question on the second half of the year, just a little bit of history.

為了回答你關於下半年的問題，我簡單介紹一下歷史。

Again, in 2023, we had a price increase going into effect in early Q3.

同樣，2023 年，我們在第三季初開始漲價。

We had a lot of our partners buy ahead of that price increase.

我們有很多合作夥伴在價格上漲之前就已經購買了產品。

So as we alluded to in the prepared remarks, we had very strong Q2 in Refinish last year, a softer Q3, given the buy ahead.

因此，正如我們在準備好的評論中提到的那樣，去年我們的修補漆第二季度表現非常強勁，但考慮到提前購買，第三季度則表現疲軟。

And that pattern reverses this year.

今年這種模式發生了逆轉。

So that order pattern from our distributors is helpful for us in the back half of the year.

因此，我們經銷商的訂單模式對我們下半年很有幫助。

Jeff Zekauskas, JPMorgan.

傑夫‧澤考斯卡斯，摩根大通。

Thanks very much.

非常感謝。

A two-part question, you've probably bought all your titanium dioxide through the end of the year, so I understand that there's no TiO2 pressure this year for you.

這是一個由兩部分組成的問題，您可能已經在年底購買了所有二氧化鈦，所以我知道今年您沒有二氧化鈦壓力。

But with Chinese -- with sanctions on Chinese product in Europe, is that a structural issue?

但對中國人來說，歐洲對中國產品實施制裁，這是結構性問題嗎？

That is, over the next four years, are you going to be facing as a base case reasonably higher TiO2 prices or much higher TiO2 prices?

也就是說，在接下來的四年裡，作為基本情況，您將面臨相當高的 TiO2 價格還是更高的 TiO2 價格？

How do you think about that?

您對此有何看法？

And then secondly, in the quarter, your volumes and auto OEM in the US contracted, and I think the production grew in the United States in the second quarter.

其次，在本季度，美國的銷量和汽車原始設備製造商都出現了收縮，我認為第二季度美國的產量有所增長。

Is that a temporary phenomenon for you or are you losing share in the US?

這對你們來說是暫時現象還是你們正在失去在美國的份額？

Okay.

好的。

Hey, Jeff.

嘿，傑夫。

On the TiO2, you are correct.

關於二氧化鈦，你是對的。

We foresee no impact in 2024, not so much because of we're sitting on a whole bunch of inventory there, but more because of we're contractual coverage.

我們預計 2024 年不會受到影響，並不是因為我們在那裡擁有大量庫存，而是因為我們有合約保障。

As we look to 2025, here's how we are thinking about it.

展望 2025 年，我們的想法如下。

First of all, at a very high level, we continue to reduce TiO2 consumption per batch without sacrificing performance.

首先，我們在不犧牲效能的情況下，在很高的水平上繼續減少每批的 TiO2 消耗。

That's about 1% per year.

每年大約是 1%。

And even though that doesn't sound like a big number, we've been doing it for a decade, and we expect that to continue.

儘管這聽起來不是一個大數字，但我們已經這樣做了十年，我們預計這種情況會繼續下去。

Second thing, specific to the tariffs and anti-dumping, we have great flexibility around the world, given the formulation work that our S&T teams have done, such that we've really increased our sourcing flexibility versus where we were, say, five years ago.

第二件事，具體到關稅和反傾銷，考慮到我們的科技團隊所做的製定工作，我們在世界各地擁有很大的靈活性，因此與五年前相比，我們確實提高了採購靈活性前。

And then finally, at the end of the day, if those two initiatives are not enough to counter whatever net increase in costs there may be to us, the biggest consumer of TiO2 is the Deco business by far.

最後，歸根結底，如果這兩項舉措不足以抵消我們可能出現的成本淨增加，那麼到目前為止，鈦白粉的最大消費者是裝飾業務。

And we have demonstrated that as necessary, we'll offset that cost with price.

我們已經證明，如有必要，我們將透過價格來抵消這一成本。

Jeff, let me just add on here to the TiO2 question before Tim goes to the next question.

Jeff，在提姆討論下一個問題之前，讓我先補充一下 TiO2 問題。

Two things: one, we're not either advantaged or disadvantaged versus others in the region as it relates to this issue, so it's going to be an item for all coatings users.

有兩件事：第一，與該地區其他國家相比，我們在這個問題上既沒有優勢也沒有劣勢，所以這將成為所有塗料用戶的一個項目。

Secondarily, not all of our production and not all of our TiO2 consumption is in the EU.

其次，並非我們所有的鈦白粉生產和消費都在歐盟。

We have plants outside of the EU that are not affected by the tariffs.

我們在歐盟以外的地區設有工廠，不受關稅影響。

So we still have some capability to produce with unimpacted tariff Chinese TiO2.

因此，我們仍然有一定的能力以不受影響的關稅生產中國鈦白粉。

And Jeff, to your second question on automotive, US specifically, first of all, the final numbers that just came in the last couple of days, the production in the US was actually down, down low single digits in the quarter.

傑夫，關於你關於汽車的第二個問題，特別是美國，首先，過去幾天剛剛公佈的最終數據，美國的產量實際上下降了，本季度下降了低個位數。

And our sales were down mid-single digits.

我們的銷售額下降了中個位數。

And so some of that would be -- Vince talked earlier -- the production number that S&P puts out is volume, and our sales number is volume plus price.

因此，其中一些是——文斯早些時候談到的——標準普爾公佈的產量數據是數量，而我們的銷售數據是數量加價格。

And we did have some contractual index price in that business.

我們在該業務中確實有一些合約指數價格。

And then the rest of it would be specific assembly plants, specific customer mix that might vary from the industry average.

然後其餘部分將是特定的組裝廠、特定的客戶組合，可能與行業平均值有所不同。

Kevin McCarthy, VRP.

凱文·麥卡錫，VRP。

Yes.

是的。

Good morning, everyone.

大家，早安。

Tim, if I look at your second-quarter organic sales results versus your forecast from last quarter, it seems to me that PPG did a very good job of forecasting.

提姆，如果我看看你的第二季有機銷售結果與上季的預測，在我看來，PPG 的預測做得非常好。

And maybe 8 of the 10 verticals where you compete, the two that I see that came in a little bit lower are architectural EMEA and protective and marine coatings.

也許在您競爭的 10 個垂直領域中，有 8 個是歐洲、中東和非洲建築以及防護和船舶塗料，我認為排名稍低的兩個領域。

And so I was wondering if you could speak to each of those businesses and maybe educate us a little bit as to why they came in a little bit weaker than you would have thought and whether that was because of transitory or idiosyncratic reasons?

因此，我想知道您是否可以與這些企業中的每一個交談，也許可以告訴我們為什麼它們的表現比您想像的要弱一些，以及這是否是由於暫時的或特殊的原因？

Or do you think they're on a different growth glide path, say, looking into 2025?

或者您認為他們正處於不同的成長軌跡，比如說，展望 2025 年？

Any additional color on geographies or product lines would be super helpful.

地理或產品線上的任何附加顏色都會非常有幫助。

Yes, sure.

是的，當然。

Hey, Kevin.

嘿，凱文。

Let me do architectural EMEA.

讓我來做歐洲、中東和非洲地區的建築設計。

Yes, we were -- clearly, the results were lower than what we expected for the region in aggregate.

是的，我們——顯然，結果低於我們對該地區整體的預期。

We had -- we believed that we were -- you've probably heard me use the term bouncing off the bottom.

我們曾經——我們相信我們——你可能聽過我用過「從底部反彈」這個詞。

We believe that at that time, we were on the bottom, and we would see sequential improvement, Q1 to Q2.

我們相信，當時我們處於底部，我們會看到第一季到第二季的連續改善。

The macros frankly just got worse in Europe, and that drove Deco, that drove auto OEM as well.

坦白說，歐洲的宏觀經濟狀況變得更糟，這推動了德科的發展，也推動了汽車原始設備製造商的發展。

But a little more color there, we are -- we're number one in 10 or so countries in Europe.

但我們的色彩還更豐富一點——我們在歐洲大約 10 個國家中排名第一。

And our biggest is France.

我們最大的是法國。

I did earlier reference -- you've seen the election and some of the turmoil in France that added to uncertainty.

我之前提到過——你們已經看到了法國的選舉和一些動盪，這增加了不確定性。

And we really did see a downturn in our sales during that period in France, our largest country.

在此期間，我們確實看到了我們最大的國家法國的銷售下滑。

So I would say that was -- that one was maybe a transitory, that as things stabilize, we'll see some recovery there.

所以我想說，這可能是暫時的，隨著情況穩定下來，我們會看到一些復甦。

We're also number one in most of the Nordic countries, which was also slower than the rest of the region, so a little bit of country mix there.

我們在大多數北歐國家中也排名第一，這也比該地區其他國家慢，所以那裡有一些國家混合。

On the offset, we're number one in Poland and a number of the Central European countries that have started to recover.

另一方面，我們在波蘭和一些已經開始復甦的中歐國家中排名第一。

So as we think about that going forward, we do believe we will see some sequential improvement in architectural Europe in Q3.

因此，當我們考慮未來時，我們確實相信我們將在第三季度看到歐洲建築業的一些連續改善。

We do believe it will still be down versus prior, Kevin, but we do think that that will start to sequentially improve.

凱文，我們確實相信它仍然會比之前有所下降，但我們確實認為這將開始逐步改善。

A much better story on protective and marine, as you know, that business has really been a good performer for us over the last several quarters.

如您所知，關於防護和海洋的一個更好的故事，該業務在過去幾個季度中對我們來說確實表現良好。

We just -- this is a project business.

我們只是—這是一個專案業務。

We just ran into a handful of project delay-type transitory items that hit us in the quarter.

我們剛剛遇到了一些在本季對我們造成影響的專案延遲型臨時專案。

You should expect growth back on track in that business starting in Q3.

您應該預期該業務的成長將從第三季開始重回正軌。

For example, we had slower China infrastructure spending than we expected with the local government issues.

例如，由於地方政府問題，我們的中國基礎設施支出比我們預期的要慢。

With the Mexican election, Pemex was delaying some of its projects.

由於墨西哥大選，墨西哥國家石油公司推遲了一些計畫。

As you know, the election is behind us now, and we're seeing that pick up.

如您所知，選舉現在已經過去，我們看到這種情況有所改善。

We have been doing really well at gaining share in the drydock business.

我們在幹船塢業務中贏得份額方面做得非常好。

We had some drydock delays associated with going around the Cape.

我們因繞開海角航行而在乾船塢發生了一些延誤。

So just a number of things like that that we do believe are transitory, but the underlying trends for that business for us are much stronger than what I would have described for the macro conditions for Deco Europe.

因此，我們確實認為一些類似的事情是暫時的，但我們該業務的潛在趨勢比我對 Deco Europe 的宏觀條件所描述的要強得多。

Josh Spector, UBS.

喬許‧斯佩克特，瑞銀集團。

Yes, hi.

是的，嗨。

Good morning.

早安.

I have two questions on the cost side.

我有兩個關於成本方面的問題。

I guess, first, your European peer announced some contract renegotiations with its labor force that they talked about as an incremental inflationary.

我想，首先，你們的歐洲同行宣布與其勞動力進行一些合約重新談判，他們將其視為增量通膨。

Is that an impact at all for PPG in the second half of 2025?

這對 PPG 2025 年下半年有影響嗎？

And then on the other end, your corporate costs have come in better than you've guided in the last couple of quarters.

另一方面，您的公司成本比過去幾季的指導要好。

With the reduction in guidance, are you accruing less for bonuses for this year?

隨著指導值的減少，您今年的獎金是否會減少？

And is that a tailwind that's baked in this year and a headwind next year?

這是否是今年的順風和明年的逆風？

If you could help quantify any of that, it would be appreciated.

如果您能幫助量化其中任何一個，我們將不勝感激。

Thank you.

謝謝。

Yes, Josh.

是的，喬許。

This is Vince.

這是文斯。

With respect to the EU, that's -- we're not involved in whatever that peer is involved with.

就歐盟而言，我們不參與其他國家參與的任何事情。

We're under our normal process in terms of reviewing our salaries, benefits on an annual basis.

我們正在按照正常流程每年審查我們的薪資和福利。

We did, as we alluded to at the beginning of the year, have a little bit of a higher wage and benefit inflation this year versus historical, given the macro.

正如我們在今年年初提到的，考慮到宏觀經濟，今年的工資和福利通膨確實比歷史水平要高一些。

But again, we expect that to trend to normal based on what we know today and future years.

但同樣，根據我們今天和未來幾年的情況，我們預期這種趨勢將趨於正常。

As it relates to corporate costs, as we said in our press release, we did -- due to the lower guidance for the full year, we have made adjustments lower for some of our incentive compensation.

由於它與企業成本有關，正如我們在新聞稿中所說，由於全年指引較低，我們對部分激勵薪酬進行了較低的調整。

And that will -- these are not big, big numbers.

這些都不是很大的數字。

We'll give a full-year '25 guide as we typically would do in January.

我們將像通常在一月份那樣提供 25 年全年指南。

We got to get through the rest of this year before we look at the year-over-year impacts, especially line by line or category by category.

我們必須先度過今年剩下的時間，然後才能查看同比影響，尤其是逐行或逐個類別的影響。

Aleksey Yefremov, KeyCorp.

阿列克謝·葉夫列莫夫 (Aleksey Yefremov)，KeyCorp。

Good morning, everyone.

大家，早安。

I wanted to ask about architectural EMEA pricing.

我想問歐洲、中東和非洲建築定價。

Given these weaker volumes, is pricing holding up in this region, or is competitive environment perhaps more aggressive than for your coatings portfolio overall?

鑑於銷量疲軟，該地區的定價是否穩定，或者競爭環境可能比您的塗料組合整體更具競爭力？

Hey, Aleksey.

嘿，阿列克謝。

Given the volume challenges, we have seen what I would call, kind of around the edges, some price downward competitive actions that we've had to match in order to keep our business.

考慮到數量上的挑戰，我們已經看到了我所說的，有點邊緣的，一些價格下降的競爭行為，我們必須匹配這些行為才能保持我們的業務。

That is an outlier versus most of our coatings portfolio.

與我們大多數塗料產品組合相比，這是一個異常值。

But I would also tell you that it's not a huge impact because there's still higher -- even though folks are trying to grab volume, and the raw material deflation is just not what it was earlier in the year, us and everyone are experiencing higher wage inflation, higher employee benefit inflation than, let's say, maybe a normal year.

但我還要告訴你，這並不是一個巨大的影響，因為仍然有更高的影響——儘管人們試圖搶奪銷量，而且原材料通貨緊縮已經不像今年早些時候那樣了，但我們和每個人都在經歷更高的薪資通貨膨脹，員工福利通貨膨脹可能比正常年份更高。

And we're not the only ones having to deal with that.

我們並不是唯一需要處理這個問題的人。

So I think that is having some impact, whether you're talking about architectural EMEA where maybe it is slowing down any otherwise volume grab kind of behavior.

因此，我認為這會產生一些影響，無論您是在談論歐洲、中東和非洲的架構，但它可能會減慢任何其他搶佔銷量的行為。

But across the portfolio, that's enabling, frankly, price to hold up, and that's also enabling things like other parts of our portfolio in performance coatings to get additional price because us and everyone else are seeing that higher wage inflation.

但坦白說，在整個產品組合中，這使得價格能夠保持穩定，而且這也使得我們的高性能塗料產品組合中的其他部分能夠獲得額外的價格，因為我們和其他所有人都看到了更高的薪資通膨。

Michael Leithead, Barclays.

邁克爾·萊特黑德，巴克萊銀行。

Great, thanks.

萬分感謝。

Good morning, guys.

早上好傢伙。

With the strategic reviews on track for this quarter, presumably, you'll get some level of cash in the door later this year.

隨著本季策略審查的順利進行，您可能會在今年稍後獲得一定程度的現金。

So is it fair for us to assume share repurchases are currently your preferred use of excess cash at the moment, or how does the acquisition pipeline look today?

那麼，我們假設股票回購是您目前首選的多餘現金用途，或者目前的收購管道如何，是否公平？

Hey, Mike.

嘿，麥克。

Great shareholder value-accretive acquisitions would always be our preferred use of cash, whether it's from proceeds from these potential transactions or just ongoing business.

為股東帶來價值增值的收購始終是我們首選的現金用途，無論是來自這些潛在交易的收益還是來自正在進行的業務。

That said, that pipeline is a bit thin right now.

也就是說，該管道目前有點薄弱。

And so we continue to look at opportunities.

因此，我們繼續尋找機會。

But overall, compared to prior years, I would assess it as thin.

但總體而言，與前幾年相比，我認為它很薄。

And perhaps, that will change going forward.

也許，這種情況未來會改變。

Perhaps, that will change in 2025 with interest rates.

或許，這種情況會在 2025 年隨著利率的變化而改變。

But right now, it's a bit thin.

但現在看來，還是有點單薄了。

You've seen -- three quarters in a row, we've bought shares back.

你已經看到了——我們連續三個季度回購了股票。

We're demonstrating that we're going to do what we said, which is we're not going to let excess cash build on the balance sheet.

我們正在證明我們將按照我們所說的去做，即我們不會讓資產負債表上出現過多的現金。

So when those transactions or potential client transactions close, we will take -- look at our pipeline.

因此，當這些交易或潛在客戶交易結束時，我們將查看我們的管道。

And if it's still thin, then we'll deploy cash as we have in the last three quarters.

如果它仍然薄弱，那麼我們將像過去三個季度一樣部署現金。

Mike Harrison, Seaport Research Partners.

麥克·哈里森，海港研究夥伴。

Hi.

你好。

Good morning.

早安.

I was wondering, Tim, if you can give us a little bit more color on what's going on in the aerospace business.

提姆，我想知道您是否能給我們更多關於航空航太業正在發生的事情的資訊。

You mentioned that you're selling everything you can make, but how much better could volumes have looked in that business if you didn't have the capacity constraints?

您提到您正在出售您可以生產的所有產品，但是如果您沒有產能限制，那麼該業務的銷售量會好多少？

And I guess, what specific actions or how much additional capacity do you think you can unlock as we get into the second half and into 2025?

我想，當我們進入下半年和 2025 年時，您認為您可以釋放哪些具體行動或多少額外產能？

Thanks.

謝謝。

Hey, Mike.

嘿，麥克。

Just to put some scale on it, our backlog -- so we produced more, sold more, had record quarter in that business, and yet our backlog still grew.

只是為了擴大規模，我們的積壓訂單 - 因此我們生產了更多，銷售了更多，該業務的季度創紀錄，但我們的積壓訂單仍在增長。

So our backlog is almost $300 million.

所以我們的積壓訂單接近 3 億美元。

So whatever you have us down for as margin in that business, if we were completely unconstrained, it would be that 300 million at our aerospace margins.

因此，無論我們在該業務中的利潤率是多少，如果我們完全不受限制，我們的航空航天利潤率將是 3 億美元。

But going forward from that, there is nothing on the horizon that our customers are telling us that's going to slow that in the near future or midterm, at least.

但從那時起，我們的客戶告訴我們，至少在不久的將來或中期，不會有任何事情會減緩這一速度。

In fact, we're getting forecasts from them that are even higher.

事實上，我們從他們那裡得到的預測甚至更高。

So what we're doing in the short term is, I would call them incremental capacity additions, things you can do quickly, whether it's through productivity improvement or CapEx investments, both of which we're doing.

因此，我們短期內正在做的事情是，我稱之為增量產能增加，您可以快速完成的事情，無論是透過生產力提高還是資本支出投資，這兩者都是我們正在做的。

But beyond that, we're assessing.

但除此之外，我們正在評估。

Do we need to do something of a larger scale?

我們是否需要做一些更大規模的事情？

And when we're ready to talk about that, we'll let you know.

當我們準備好討論這個問題時，我們會通知您。

But it's a pretty significant backlog driven across commercial, general aviation, and military; driven across transparencies, coatings, and sealants; and driven across OEM and aftermarket.

但這是商業、通用航空和軍事領域的一個相當大的積壓；驅動透明膠片、塗料和密封劑；並推動整個 OEM 和售後市場。

Every one of those is getting pulled from our advanced technologies.

其中每一項都取自我們的先進技術。

Laurent Favre, BNP Paribas.

洛朗法夫爾，法國巴黎銀行。

Yes.

是的。

Good morning, all and team.

早上好，大家和團隊。

Apologies, if France made you -- events in France made you miss your forecast.

抱歉，如果法國讓你——法國發生的事件讓你錯過了你的預測。

But I've got a question on industrial coatings pricing.

但我有一個關於工業塗料定價的問題。

On the minus 3%, can you unpack how much of that was indexation versus the rest?

在負 3% 的情況下，你能分析其中有多少是指數化的嗎？

And are you seeing pressure away from indexation given weak volumes?

鑑於交易量疲軟，您是否看到指數化帶來的壓力？

And the second part of that question is, should we assume that the indexation part is going to get worse into H2, or are we at the trough in terms of the year-on-year impact?

這個問題的第二部分是，我們是否應該假設指數化部分在下半年會變得更糟，或者我們是否處於同比影響的低谷？

Thank you.

謝謝。

Hey, Laurent.

嘿，洛朗。

I'm expecting lots of paint sales as the Olympics get going here and then after the Olympics as well, so I'm sure France recovery is on the horizon.

我預計隨著奧運會的舉行，以及奧運會結束後，油漆的銷售量將會很大，所以我確信法國的復甦即將到來。

The pricing in the industrial segment, virtually, all of it is index pricing.

工業領域的定價，其實都是指數定價。

I don't want to say 100% because there's always things happening around the edges.

我不想說 100%，因為總是有一些事情發生在邊緣。

But virtually, all of it is index pricing, and I don't expect that to change significantly as we look through the rest of this year.

但實際上，所有這些都是指數定價，而且我預計，在我們今年剩餘時間裡，這種情況不會發生重大變化。

Kevin Estok, Jefferies.

凱文·埃斯托克，傑弗里斯。

This is Dan Rizzo from Jefferies.

我是來自 Jefferies 的 Dan Rizzo。

Thanks for taking my question.

感謝您提出我的問題。

Thanks for fitting me in.

謝謝你讓我融入。

I was just wondering, you mentioned in your prepared remarks about softness in the exports from Chinese auto EVs kind of slowing.

我只是想知道，您在準備好的演講中提到中國汽車電動車出口疲軟有所放緩。

I was wondering if they are as of yet anticipating a change in the environment if Trump were to take office.

我想知道如果川普上任，他們是否預期環境會發生變化。

What's the lead time between they anticipate higher tariffs and potentially lower sales and that they shut down or slow down production?

他們預計關稅上升和銷售可能下降與他們關閉或減慢生產之間的準備時間是多少？

Yes, so I'll start.

是的，那麼我就開始吧。

And all Trump questions, I delegate to Vince, so I'm going to let Vince handle that part.

所有川普的問題，我都會委託給文斯，所以我會讓文斯處理這部分。

But what I want to say about the EVs is we're a proud supplier to the number one manufacturer over there.

但關於電動車，我想說的是，我們是那裡第一大製造商的自豪供應商。

And of course, they were doing quite a bit of export.

當然，他們也進行了大量的出口。

And so they're being cautious right now, and we'll see how that plays out as far as their overall production numbers as we move through the year.

因此，他們現在持謹慎態度，隨著今年的進展，我們將看看這對他們的整體產量有何影響。

But I do want to point out, even though -- even with all the headlines on EVs happening right now or maybe in a less-than-positive direction, I think that's only changing the slope of the curve and not the end-point destination of the curve.

但我確實想指出，即使現在所有有關電動車的頭條新聞正在發生，或者可能朝著不太積極的方向發生，我認為這只是改變了曲線的斜率，而不是終點目的地曲線的。

For 2024, even with all the news we've heard, the projection is still that EV production will grow by 14% versus last year.

對於 2024 年，即使我們聽到了所有消息，預計電動車產量仍將比去年增長 14%。

And the production is still that 30% of every vehicle produced in China will be an EV.

而且中國生產的每輛汽車中，仍有 30% 是電動車。

And of course, China produces about a third of all the world's cars.

當然，中國生產的汽車約佔世界總量的三分之一。

So I think we all have to take these headlines as moderation but not drastically story-changing headlines for EV.

因此，我認為我們都必須將這些頭條新聞視為溫和的，而不是徹底改變電動車故事的頭條新聞。

Arun Viswanathan, RBC.

阿倫·維斯瓦納坦，加拿大皇家銀行。

Great.

偉大的。

Thanks for taking my question.

感謝您提出我的問題。

I guess I just wanted to ask a couple more questions on North American architectural and the portfolio as well.

我想我只是想問一些關於北美建築和投資組合的問題。

So on architectural, I think our understanding is 4% EBITDA margins for the whole group.

因此，在建築方面，我認為我們的理解是整個集團的 EBITDA 利潤率為 4%。

But maybe the stores business was recently unprofitable.

但也許商店業務最近沒有盈利。

I don't know if that's something you can just shed some light on.

我不知道這是否是你可以解釋的事情。

And are you seeing any interest in the stores side of that as well.

您是否也看到了對商店方面的興趣？

Presumably, we've heard that there's good interest on the non-stores business.

據推測，我們聽說人們對非商店業務很感興趣。

But if there isn't on the stores, would you consider keeping those or shutting those down or how do you proceed there?

但如果商店裡沒有，你會考慮保留它們還是關閉它們，或者你將如何處理？

And then on the portfolio itself, as you look into '25, presumably, you won't have architectural in North America, so you will be a little bit more industrial levered.

然後就投資組合本身而言，當你展望 25 年時，大概你不會在北美擁有建築業，所以你的工業槓桿會更大一些。

Is there any way you can kind of give us your thoughts on how we should think about that?

您可以透過什麼方式向我們提供您的想法，讓我們知道我們應該如何考慮這個問題嗎？

Industrial businesses and coatings sometimes have fetched lower valuations, so I don't know if that enters into your thinking as well.

工業企業和塗料有時會獲得較低的估值，所以我不知道您是否也在考慮這一點。

Thanks a lot.

多謝。

Hey, Arun.

嘿，阿倫。

Let me answer the North American architectural questions.

讓我回答一下北美建築問題。

Again, I think when we announced the strategic review in February, we gave some directional information.

再說一遍，我認為當我們在二月宣布戰略審查時，我們給出了一些方向性資訊。

And certainly, the people who are interested and engaged got the data books, et cetera, and we're providing data almost on a daily basis.

當然，有興趣和參與的人得到了數據手冊等，我們幾乎每天都提供數據。

We're not going to get into the nuances of the different channels.

我們不會深入探討不同管道的細微差別。

Again, we're in a process where there's a lot of folks looking at it.

同樣，我們正處於一個有很多人關注的過程中。

They have what they need.

他們有他們需要的東西。

And we're not going to certainly get into how this may or may not be split.

我們當然不會討論如何分割或不分割。

Again, there's a multitude of different scenarios that we're entertaining, and we'll let that process play out over the next 60 or 75 days or whatever.

同樣，我們會考慮多種不同的場景，我們會讓這個過程在接下來的 60 或 75 天或其他時間展開。

So again, we'll let that process play out.

再說一次，我們會讓這個過程繼續下去。

And when we get to an ultimate conclusion, I think we'll be a little more granular to answer some of your questions.

當我們得出最終結論時，我想我們會更詳細地回答你們的一些問題。

Arun, let me take the portfolio question.

阿倫，讓我回答投資組合問題。

Mathematically, of course, you're spot on that ex this business, we will be a little heavier in industrial coatings and lighter in performance coatings.

當然，從數學上來說，在這項業務中，我們將在工業塗料方面重一點，在高性能塗料方面輕一點。

But you've seen the numbers and the guidance we've given on the profitability and margin of the architectural US business.

但您已經看到了我們就美國建築業務的盈利能力和利潤率給出的數字和指導。

And ex that business, mathematically and going forward, despite that shift from -- that you described from less performance and more industrial, in aggregate, we will be a higher-margin and higher-growth company.

就業務而言，從數學角度和未來來看，儘管您所描述的績效下降和工業化程度提高，但總體而言，我們將成為一家利潤率更高、成長更快的公司。

We wouldn't be doing this otherwise.

否則我們不會這樣做。

Just to be clear that there's also the benefit of us as a management team, as a PPG team being able to focus all resources, whether it's human resources, R&D resources, capital resources, bandwidth resources on businesses that have higher growth and higher margin profiles.

需要明確的是，我們作為管理團隊也有一個好處，作為 PPG 團隊，能夠將所有資源（無論是人力資源、研發資源、資本資源、頻寬資源）集中到具有更高成長和更高利潤率的業務上。

So we are fully confident that this is the right thing to do for not only customers, employees, but absolutely for shareholders going forward, fully confident.

因此，我們完全有信心，這不僅對客戶、員工來說是正確的做法，對股東的未來也絕對有信心。

Jaideep Pandya, On Field Investment Research.

Jaideep Pandya，實地投資研究。

Thank you.

謝謝。

I guess, first question is on packaging.

我想，第一個問題是關於包裝的。

Could you just tell us how confident are you to keep the share that you have gained because one of your competitors had a fire, because we are hearing sort of opposite messages, and they seem to be confident they'll get the share back.

您能否告訴我們，您對保留因競爭對手發生火災而獲得的份額有多大信心，因為我們聽到了相反的消息，他們似乎有信心拿回份額。

So just wondering how will packaging look in 2025.

所以只是想知道 2025 年的包裝會是什麼樣子。

My second question is -- sorry to come back to architectural North America, but looking back 10 years ago when you bought the actual business, it doesn't feel like a lot has changed in terms of either the store footprint or the plant footprint or even, for that matter, the profitability.

我的第二個問題是——很抱歉回到北美建築界，但是回顧 10 年前，當你購買實際業務時，感覺無論是商店佔地面積還是工廠佔地面積都沒有發生很大變化，或者就這一點而言，甚至是盈利能力。

And you alluded to one point, which was a need for investment.

您提到了一點，那就是投資的需要。

So just curious, when you look at JV models, where do you need to invest?

所以我很好奇，當你考慮合資模式時，你需要在哪裡投資？

And how do you sort of unpack and improve profitability here because you yourself done it with Akzo in the last 10 years.

您如何在這裡解壓並提高盈利能力，因為您自己在過去 10 年裡與阿克蘇一起做到了這一點。

And sorry to say this, but it sort of hasn't worked.

很遺憾地說，但這並沒有奏效。

So what would you and a JV partner do here?

那麼您和合資夥伴會在這裡做些什麼呢？

Just curious.

只是好奇。

And sorry to squeeze in one more.

很抱歉又擠了一張。

Tim, volume growth has been an issue for PPG for the last 11 quarters.

Tim，過去 11 個季度的銷售成長一直是 PPG 面臨的問題。

How do you incentivize your sales force to go for volume if you, at all, want to do that?

如果您確實想這樣做，您如何激勵您的銷售人員追求銷量？

Thanks a lot.

多謝。

Okay, Jaideep.

好的，賈迪普。

Thanks for the questions there.

感謝您提出的問題。

On packaging, high degree of confidence that we will keep our share gains and continue to grow this year.

在包裝方面，我們對今年將保持份額增長並繼續增長充滿信心。

You did mention an incident one of our competitors unfortunately had, and of course, there was some things that the industry did to get through that.

您確實提到了我們的一位競爭對手不幸發生的事件，當然，該行業採取了一些措施來解決這一問題。

But we've won a lot of shares that had nothing to do with that incident.

但我們贏得了許多與那次事件無關的股票。

And so we are confident going forward that our technologies inside the can, outside the can, on easy-open end, our food lines, we're gaining share across a number of different spaces that had nothing to do with that isolated incidence.

因此，我們對未來充滿信心，我們的罐內技術、罐外技術、易開端技術、食品生產線技術，我們正在許多不同領域獲得份額，而這些領域與這一孤立事件無關。

So good news ahead for that business.

對該業務來說，這是個好消息。

JV scenario for architectural US-Canada, at the end of the day, there are -- I've said from the beginning that we believe this business could be more successful with a partner.

美國-加拿大建築合資企業的情況，歸根結底，我從一開始就說過，我們相信與合作夥伴合作，這項業務可以更加成功。

And that partner could either buy the whole thing or do a JV.

該合作夥伴可以購買整個公司或成立合資企業。

That partner might be able to run more velocity through the high fixed cost that company-owned stores bring.

該合作夥伴也許能夠透過公司自營商店帶來的高固定成本來提高速度。

They might be able to bring more velocity through -- whether it's other paint products or other building products in general.

他們也許能夠提高速度──無論是其他油漆產品還是其他一般建築產品。

So that is the big issue where a JV may be able to help us from that velocity through your high fixed-cost stores.

因此，這是一個大問題，合資企業可能能夠透過您的高固定成本商店幫助我們提高速度。

In volume growth, I mentioned as we move through 2023 and the first half of 2024 that we were modifying incentive comp to drive more organic growth.

在銷售成長方面，我提到，在 2023 年和 2024 年上半年，我們正在修改激勵措施以推動更多的有機成長。

We've done some of that, some of that is already in place, and some of it is still being implemented as we speak.

我們已經做了一些，其中一些已經到位，還有一些在我們發言時仍在實施中。

And that is one element of a multifaceted recipe that we're changing to drive a higher organic profile company.

這是我們正在改變的多方面配方的一個要素，以推動更高有機形象的公司。

Aron Ceccarelli, Berenberg.

阿隆·切卡雷利，貝倫貝格。

Hello.

你好。

Hi.

你好。

Good morning.

早安.

Thanks for taking my question.

感謝您提出我的問題。

I have a very quick one on industrial coating.

我有一篇關於工業塗料的快速文章。

I would be interested in understanding if you can provide some color around the monthly run rate of volumes.

我有興趣了解您是否可以提供有關每月卷運行率的一些資訊。

And I would be particularly interested in the exit rate in June, if there's any area of the business that actually accelerated or decelerated at the end of the quarter.

我對 6 月的退出率特別感興趣，看看是否有任何業務領域在季度末實際加速或減速。

Thank you.

謝謝。

Yes, Aron, thanks for the question.

是的，阿倫，謝謝你的提問。

So at the end of the quarter, I would say industrial segment, automotive was decelerating.

因此，在本季末，我想說工業領域、汽車產業正在減速。

As I previously mentioned, we got some further shutdown news as we move through the month of June.

正如我之前提到的，隨著六月的到來，我們收到了一些進一步的關閉消息。

I would say, industrial, starting to -- pretty flat, but we are starting to see some sequential improvement that we projected into Q3.

我想說，工業方面，開始相當平穩，但我們開始看到我們預計到第三季的一些連續改善。

And I think, packaging, based on the last question, is accelerating from a volume standpoint.

我認為，基於最後一個問題，從數量的角度來看，包裝正在加速發展。

So that's how I'd quantify the exit rates for industrial segment.

這就是我量化工業領域退出率的方法。

There are no further questions at this time.

目前沒有其他問題。

I will now turn the call back over to Alex Lopez.

我現在將把電話轉回亞歷克斯·洛佩茲。

Thank you, Elliot.

謝謝你，艾利奧特。

We appreciate your continued interest and confidence in PPG.

我們感謝您對 PPG 的持續關注和信任。

This concludes our second-quarter earnings call.

我們的第二季財報電話會議到此結束。

This concludes today's conference call.

今天的電話會議到此結束。

You may now disconnect.

您現在可以斷開連線。