PPG Industries Inc (PPG) 2024 Q3 法說會逐字稿

Good morning. My name is Elliot. I'll be your conference operator today. This time, I would like to welcome everyone to our third quarter of PPG earnings conference call. (Operator Instructions) Thank you. I would now like to turn the call over to Alex Lopez, Director of Investor Relations. Please go ahead, sir.

早安.我的名字是艾略特。今天我將擔任你們的會議操作員。這次，我謹歡迎大家參加我們的 PPG 第三季財報電話會議。 （操作員說明）謝謝。我現在想將電話轉給投資人關係總監 Alex Lopez。請繼續，先生。

Thank you, Elliot, and good morning, everyone. This is Alex Lopez, Director, Investor Relations. We appreciate your continued interest in PPG and welcome you to our third-quarter 2024 financial results conference call. 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.

謝謝你，艾利奧特，大家早安。我是亞歷克斯·洛佩茲，投資者關係總監。我們感謝您對 PPG 的持續關注，並歡迎您參加我們的 2024 年第三季財務業績電話會議。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 at the US equity markets close on Wednesday, October 16, 2024. 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 and provide additional support to the opening comments Tim will make shortly.

我們的評論涉及 2024 年 10 月 16 日星期三美國股市收盤時發布的財務資訊。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 -- to a Q&A session. 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.

根據管理層對公司本季業績的看法，我們將進入問答環節。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。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。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. 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. Now, let me introduce you to the Chairman and CEO, Tim Knavish.

此簡報也包含某些非公認會計準則財務指標。該公司在簡報資料的附錄中提供了這些非公認會計原則財務指標與最直接可比較的公認會計原則財務指標的對賬，這些資料可在我們的網站上找到。如需了解更多信息，請參閱 PPG 向 SEC 提交的文件。現在，讓我向您介紹董事長兼執行長 Tim Knavish。

Thank you, Alex, and good morning, everyone. Welcome to our third-quarter 2024 earnings call. I'd like to start by providing a few highlights on our third-quarter '24 financial performance, make a few comments on our press release this morning, and then I'll move to our outlook for PPG.

謝謝你，亞歷克斯，大家早安。歡迎參加我們的 2024 年第三季財報電話會議。首先，我想介紹一下我們 24 年第三季財務業績的一些要點，對今天早上的新聞稿發表一些評論，然後我將談談我們對 PPG 的展望。

The PPG team delivered sales of $4.6 billion and our eighth consecutive quarter of year-over-year segment margin improvement. This culminated in record third quarter adjusted earnings per diluted share of $2.13, which represents 3% year-over-year growth despite an unfavorable impact from a higher year-over-year tax rate, which reduced the EPS comparison by $0.08 or 4%.

PPG 團隊實現了 46 億美元的銷售額，並且我們的細分市場利潤率連續第八個季度實現同比增長。第三季調整後每股攤薄收益創歷史新高，達到 2.13 美元，年增 3%，儘管較高的同比稅率帶來了不利影響，每股收益減少了 0.08 美元，即 4%。

Our segment margin improvement was driven by favorable business mix due to our sales of our Advantage products and a continued focus to deliver productivity and lower costs. Our growth broadened as 7 out of 10 businesses delivered organic growth in the quarter, and another business, specifically our architectural coatings business, in Europe was flat.

我們的部門利潤率改善是由有利的業務組合推動的，這得益於我們優勢產品的銷售以及對提高生產力和降低成本的持續關注。我們的成長有所擴大，十分之七的業務在本季度實現了有機成長，而歐洲的另一項業務，特別是我們的建築塗料業務則持平。

We delivered year-over-year sales volume growth of plus 2% in the performance coatings segment driven by above-market volume performance in automotive refinish, including high single-digit percentage increases in US collision-related products despite lower overall industry collision claims.

在汽車修補漆領域高於市場的銷售表現的推動下，我們的高性能塗料細分市場銷量同比增長了2% 以上，其中包括美國碰撞相關產品的高個位數百分比增長，儘管整體行業碰撞索賠較低。

Additionally, our aerospace coatings business delivered record quarterly sales, stemming from double-digit percentage organic sales growth. And, despite improving our production capacity this year through debottlenecking and other productivity gains, we still ended the quarter with an order backlog of approximately $290 million. This backlog demonstrates the strong demand for our technology advantage products and excellent industry dynamics.

此外，由於兩位數的有機銷售成長，我們的航空塗料業務實現了創紀錄的季度銷售額。而且，儘管我們今年透過消除瓶頸和其他生產力提升提高了生產能力，但本季末我們的積壓訂單仍然約為 2.9 億美元。這一積壓顯示了對我們技術優勢產品的強勁需求和優秀的行業動態。

We had sustained growth in architectural coatings Americas and Asia-Pacific driven by the professional contractor channel in the US and Canada. Also, our concessionaire network in Mexico continues to perform well. Additionally, our protective & marine business benefited from strong global demand and our recent share gains.

在美國和加拿大專業承包商通路的推動下，我們在美洲和亞太地區的建築塗料業務持續成長。此外，我們在墨西哥的特許經營網絡繼續表現良好。此外，我們的防護和海洋業務受益於強勁的全球需求和我們最近的份額成長。

Year over year, organic sales for architectural coatings in Europe were flat. And while, of course, we aspire for growth in this business, the flat results are a positive trend after several quarters of sales declines. This result was supported by growth in Central and Eastern Europe, offset by lower sales volumes across Western Europe.

與去年同期相比，歐洲建築塗料的有機銷售量持平。當然，雖然我們渴望這項業務的成長，但在經歷了幾個季度的銷售下滑之後，持平的業績是一個積極的趨勢。這一結果得益於中歐和東歐的成長，但卻被西歐銷量下降所抵銷。

Solid growth in our Performance Coatings segment in a difficult environment reflects the strength of our key technologies, brands, and services. However, this growth was offset by increasingly challenged global auto OEM and industrial production, which constrained demand in the industrial coatings segment.

我們的高性能塗料業務在困難的環境中實現穩健成長，體現了我們關鍵技術、品牌和服務的實力。然而，這一增長被日益嚴峻的全球汽車原始設備製造商和工業生產所抵消，從而限制了工業塗料領域的需求。

As has been well publicized, the automotive OEM industry, particularly in the US and Europe, has taken unscheduled prolonged downtime that was not considered in our July financial guidance. This rapid decline in industry production negatively impacted our top line. And while we reacted quickly with cost mitigation efforts, we were not able to fully offset the earnings impact late in the quarter. We were able to partially offset the decline with PPG share gains that resulted in double-digit percentage volume growth in Latin America and single-digit percentage volume growth in China.

正如眾所周知的那樣，汽車 OEM 行業，尤其是美國和歐洲的汽車 OEM 行業，已經經歷了計劃外的長時間停機，而我們 7 月份的財務指引中並未考慮到這一點。行業產量的快速下降對我們的收入產生了負面影響。儘管我們迅速採取了降低成本的措施，但我們無法完全抵消本季末的獲利影響。我們能夠透過 PPG 份額的成長部分抵消下降的影響，這導致拉丁美洲的銷售百分比成長達到兩位數，中國的銷售百分比成長達到個位數。

Similar to prior quarters, general industrial activity in the US and Europe was lackluster and mixed by end use, and our volume performance mirrored that backdrop. Despite delivering solid volume growth in China and India, our aggregate industrial coatings business organic sales declined by a mid-single-digit percentage. We delivered strong top-line performance in the packaging coatings business, achieving our third consecutive quarter of volume growth driven by incremental share gains.

與前幾季類似，美國和歐洲的整體工業活動低迷，且終端用途參差不齊，我們的銷售表現也反映了這一背景。儘管在中國和印度的銷量實現了穩健成長，但我們的工業塗料業務有機銷售額總體下降了中個位數百分比。我們在包裝塗料業務中實現了強勁的營收業績，在份額增量的推動下實現了連續第三個季度的銷售成長。

During the third quarter, raw material costs were flat year over year and we expect this will continue in the fourth quarter. We are just now starting preliminary discussions with our suppliers for 2025 and there is ample capacity in our supply chain.

第三季度，原物料成本較去年持平，我們預期第四季這種情況將持續下去。我們剛開始與供應商就 2025 年的計畫進行初步討論，我們的供應鏈產能充足。

We ended the third quarter with cash of about $1.3 billion. During the quarter, we completed $200 million in share repurchases and paid $160 million in dividends. On a year-to-date basis, we have returned approximately $1 billion of cash to shareholders through dividends and share repurchases. This is supported by our consistent cash flow generation. Our strong balance sheet provides us with financial flexibility to create shareholder value going forward.

第三季結束時，我們的現金約為 13 億美元。本季度，我們完成了 2 億美元的股票回購，並支付了 1.6 億美元的股息。今年迄今，我們已透過股利和股票回購向股東返還約 10 億美元現金。這是我們持續產生現金流的支持。我們強大的資產負債表為我們提供了財務靈活性，以創造未來的股東價值。

I wanted to take this opportunity to provide you with an update from our previously announced strategic reviews of the global products business and the architectural coatings US and Canada business. As previously announced, we reached a definitive agreement to sell our silicas products business for approximately $310 million in pretax proceeds. We expect to close this transaction in the fourth quarter.

我想藉此機會向您提供我們先前宣布的全球產品業務以及美國和加拿大建築塗料業務策略審查的最新資訊。正如先前宣布的那樣，我們達成了最終協議，以約 3.1 億美元的稅前收益出售我們的二氧化矽產品業務。我們預計在第四季完成這筆交易。

Regarding the architectural coatings US and Canada strategic review, per this morning's announcement, I am pleased to share that we have reached a definitive agreement to sell 100% of this business for a transaction value of $550 million. We are very pleased to be working with a quality buyer like American Industrial Partners, a growth-focused company with a strong track record. These two divestitures further optimize our portfolio by improving our organic growth and financial return profiles, and will result in increased capability to channel our growth resources to areas where we have the strongest growth, and strongest margin profiles, and a demonstrated right to win.

關於美國和加拿大建築塗料策略審查，根據今天上午的公告，我很高興地宣布，我們已達成最終協議，以 5.5 億美元的交易價值出售該業務 100% 的股份。我們很高興能與像 American Industrial Partners 這樣的優質買家合作，這是一家專注於成長、擁有良好業績記錄的公司。這兩項資產剝離透過改善我們的有機成長和財務回報狀況進一步優化我們的投資組合，並將增強我們將成長資源引導到我們擁有最強勁成長、最強利潤狀況和明顯獲勝權利的領域的能力。

As we stated when we announced this review, on a three-year pro forma basis, PPG's overall company sales volume results would have improved cumulatively by over 200 basis points, excluding the Architectural Coatings US and Canada business. Also, the company's Performance Coatings segment operating EBIT, excluding the US and Canada Architectural Coatings, would have resulted in an approximately 300 basis point improvement in segment margins in 2023.

正如我們在宣布本次審查時所述，按照三年預估計算，PPG 的整體公司銷量業績將累計提高 200 個基點以上（不包括美國和加拿大的建築塗料業務）。此外，該公司高性能塗料部門的息稅前利潤（不包括美國和加拿大建築塗料部門）將導致 2023 年部門利潤率提高約 300 個基點。

These actions clearly demonstrate the active management of our portfolio focused on value creating shareholder value by management and by our Board. We expect to close on the silicas transaction in Q4 in the Architectural Coatings US and Canada transaction late in Q4 or early 2025.

這些行動清楚地表明了我們對投資組合的積極管理，重點是管理層和董事會為股東創造價值。我們預計將於第四季末或 2025 年初完成美國和加拿大建築塗料交易中的二氧化矽交易。

Let me reiterate that our other Architectural Coatings businesses in Latin America, Europe and Asia Pacific remain important and core businesses for PPG. On top of these portfolio actions, we have announced a comprehensive restructuring program to eliminate associated stranded costs from these transactions and separately to enable footprint rationalization specifically in Europe and a few other global coatings businesses.

讓我重申，我們在拉丁美洲、歐洲和亞太地區的其他建築塗料業務仍然是 PPG 的重要核心業務。除了這些投資組合行動之外，我們還宣布了一項全面的重組計劃，以消除這些交易中的相關滯留成本，並分別實現足跡合理化，特別是在歐洲和其他一些全球塗料企業。

This program will deliver approximately $175 million once fully implemented, including savings of $60 million in 2025. These self-help actions reflect our ongoing commitment to aggressively manage our controllables.

該計劃全面實施後將帶來約 1.75 億美元的收入，其中包括在 2025 年節省 6,000 萬美元。

As we execute and deliver in Q4, we start to execute on our self-help initiatives, I'm excited about entering 2025. We'll have a sharper, more focused future-facing portfolio and are building a higher growth and higher-margin profile company.

當我們在第四季度執行和交付時，我們開始執行我們的自助計劃，我對進入2025 年感到很興奮。和更高的利潤率簡介公司。

For our customers, we are both delivering solutions today that ensure their success and innovating for tomorrow to improve both their productivity and sustainability. The result will be profitable organic growth for PPG and shareholder value for our owners.

對於我們的客戶，我們今天提供的解決方案確保他們的成功，並為明天進行創新，以提高他們的生產力和永續性。其結果將為 PPG 帶來獲利性有機成長，並為我們的所有者帶來股東價值。

Finally, we remain committed to our heritage of strong cost management and improved productivity that reinforces the ability to maintain our momentum in driving higher margins and earnings growth. The strong performance would not be possible without the dedication of our employees to deliver growth for PPG.

最後，我們仍然致力於維持強有力的成本管理和提高生產力的傳統，這將增強我們維持推動更高利潤和獲利成長動能的能力。如果沒有我們員工的奉獻精神，PPG 就不可能有如此強勁的業績。

Thank you to our PPG team around the world who make it happen and deliver on our purpose every day. Thank you for your continued confidence in PPG. This concludes our prepared remarks. And Elliot, would you please open the line for questions.

感謝我們遍布世界各地的 PPG 團隊，是你們讓這一切成為現實，並每天實現我們的目標。感謝您對 PPG 的持續信任。我們準備好的演講到此結束。艾利歐特，請您開通提問專線。

(Operator Instructions) John Roberts, Mizuho.

（操作員說明）John Roberts，Mizuho。

Thank you. Tim, could you give us the valuation multiples on the architectural deal? And is the exit completely clean or is there anything left behind for PPG to deal with this type of the stranded costs at corporate?

謝謝。提姆，您能給我們建築交易的估值倍數嗎？退出是否完全乾淨，或者 PPG 是否有留下任何東西來處理企業的此類擱淺成本？

Yeah. Hey, thanks, John. So the sales of that business are approximately $2 billion. The EBITDA margins low-single digits. And when you do the math, the multiple comes out to a 14 multiple. And as far as -- it's a clean, it's a clean cut, a clean break. There will, of course, will be some transition service agreements, but it does include ongoing exclusives supply agreements with AAP for them to distribute our protective and light industrial coatings.

是的。嘿，謝謝，約翰。因此該業務的銷售額約為 20 億美元。 EBITDA 利潤率為低個位數。如果你算一下，倍數就是 14 倍。就——這是一個乾淨的，這是一個乾淨的切入，一個乾淨的突破。當然，將會有一些過渡服務協議，但它確實包括與 AAP 持續簽訂的獨家供應協議，讓他們分銷我們的防護塗料和輕工業塗料。

Okay. Thanks, John.

好的。謝謝，約翰。

This is Vince, John. Just a reminder, the manufacturing and distribution facilities associated with this business were primarily standalone. So there's no issues in terms of separation there as well.

這是文斯，約翰。請注意，與該業務相關的製造和分銷設施主要是獨立的。所以那裡也不存在分離方面的問題。

Michael Sison, Wells Fargo.

麥可西森，富國銀行。

Hey, guys, congrats on getting the deal done. Can you maybe talk about the growth algorithm for 2025 post the sale of some of that, the architecture of silicon, kind of how do you sort of see the volume growth potential for EBITDA going forward? And I know it's a little bit early to give an EPS loss, but just any framework on how EPS start to go next year and hopefully we're in a recovering economy.

嘿，夥計們，恭喜你完成了交易。您能否談談在出售其中一些晶片架構後 2025 年的成長演算法，您如何看待未來 EBITDA 的銷售成長潛力？我知道現在給出每股收益損失還為時過早，但只是關於明年每股收益如何開始成長的任何框架，希望我們處於復甦的經濟中。

Yeah. Hey. Thanks, Mike. I'm a little early to give to give any numbers, but the way we're thinking about it is we have momentum in a number of areas were very pleased with the trend in performance coatings. If you look at auto, despite what's happened here in Q3, IHS is projecting marginally positive builds next year and marginally positive would be a lot better than this year. Europe. What's taken a while to get here is finally flattened, which which is a positive story for us as we head in to '25, we're gaining traction on a number. The growth initiatives that we've been talking about all year.

是的。嘿。謝謝，麥克。我現在給出任何數字還為時過早，但我們的想法是，我們在許多領域都有動力，對高性能塗料的趨勢非常滿意。如果你看一下汽車產業，儘管第三季發生了一些事情，IHS 預計明年的銷售量將略有成長，而且會比今年好得多。歐洲。花了一段時間才到達這裡的事情終於被平息了，這對我們來說是一個積極的故事，因為我們進入了 25 年，我們在一些數字上獲得了牽引力。我們一整年都在談論的成長舉措。

And then I'd say the self-help that we announced today will start to kick in, so that will help us in '25 as well. So overall, we will continue that we're assuming will continue to have some challenging macros. But when you combine with a portfolio move that we just announced this month morning, we're optimistic and excited that a sharper more focused PPG with higher growth in a higher margin profile will be the result in 2025.

然後我想說，我們今天宣布的自助將開始發揮作用，因此這也將在 25 年為我們提供幫助。因此，總的來說，我們將繼續假設將繼續存在一些具有挑戰性的巨集。但當你結合我們本月早上剛宣布的投資組合舉措時，我們感到樂觀和興奮，因為 2025 年將出現一個更清晰、更專注、更高增長、更高利潤率的 PPG。

Vince, one thing I'll add there, and we put this certainly in our press release. But again, we expect to -- we have a strong balance sheet today. We expect to end the year with a strong balance sheet. So that gives us that flexibility to use that balance sheet in the subsequent quarters and years to our shareholders' benefit.

文斯，我要補充一件事，我們肯定會將其放在新聞稿中。但我們再次預計，我們今天擁有強勁的資產負債表。我們預計年底將擁有強勁的資產負債表。因此，這使我們能夠在接下來的季度和年份靈活地使用該資產負債表，從而為股東謀取利益。

Michael Leithead, Barclays.

邁克爾·萊特黑德，巴克萊銀行。

Great, thanks. Good morning, guys. So the team, can you speak a little bit more about the outlook and trajectory for industrial margins? And when you think about this quarter, was the weakness driven more as a function of price decline or volume came in below forecast and we got caught offside little bit at the end of the quarter?

太好了，謝謝。早安，夥計們。那麼，團隊成員，您能多談談工業利潤率的前景和軌跡嗎？當您考慮本季時，疲軟是否更多是由於價格下跌或成交量低於預期而導致的，並且我們在季度末有點越位了？

Yes, Mike. So it I'd say it was largely driven by the volume, particularly as we progress through the quarter. Predominantly in auto OEM, but also in general industrial coatings, there was some, as you saw in the documents, there was some price impact as well, but we expected that that was all index pricing. The real issue, the real issue was volume. So the outlook, any any volume will bring that leverage leverage right back. But also part of the reason why we're taking the self-help actions.

是的，麥克。所以我想說，這很大程度上是由銷量推動的，特別是隨著我們在本季的進展。主要是在汽車原始設備製造商中，但也在一般工業塗料中，正如您在文件中看到的那樣，也存在一些價格影響，但我們預計這都是指數定價。真正的問題，真正的問題是數量。因此，展望未來，任何交易量都會使槓桿作用恢復。但這也是我們採取自助行動的部分原因。

Ghansham Panjabi, Baird.

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

Thank you, operator. Good morning, everybody. Tim, as it relates to the $550 million in gross proceeds on, is that number within the range of outcomes that you anticipated as you contemplated the sale of the assets additionally? And then also related to that, how should we think about proceeds allocations and also any dis-synergies from global procurement that we should keep in mind?

謝謝你，接線生。大家早安。提姆，因為它涉及 5.5 億美元的總收益，這個數字是否在您考慮另外出售資產時預期的結果範圍內？與此相關的是，我們應該如何考慮收益分配以及我們應該牢記的全球採購的任何反協同效應？

Yeah. hey, Ghansham. The $550 million, and certainly the the 14 multiple is is consistent with what we were expecting to get. Goldman did a tremendous amount of work with us during this process. We literally had over over 100 inch listed parties to begin with. You've got 30 initial bids. And so we had a very, very broad group of interest that gave us a lot of optionality and gave us a lot of insight into what the what the true value of the assets were. And we're pleased with pleased with the 14 month multiple proceeds.

是的。嘿，甘沙姆。 5.5 億美元，當然還有 14 倍，與我們的預期一致。在這個過程中，高盛與我們一起做了大量的工作。我們一開始就舉辦了超過 100 吋的派對。您有 30 個初始出價。因此，我們有一個非常非常廣泛的興趣群體，這給了我們很多選擇，並讓我們深入了解資產的真正價值是什麼。我們對 14 個月的多次收益感到滿意。

I would just point to I would just point to our track record over the last four quarters. We've said multiple times. We're not going to let cash just grow on the balance sheet. So you know, if there's nothing out there that delivers better shareholder value. We've been buying back shares in the last four quarters, and we stick by our our deployment plans there.

我只想指出我們過去四個季度的業績記錄。我們已經說過很多次了。我們不會讓現金在資產負債表上成長。所以你知道，如果沒有什麼可以帶來更好的股東價值。我們在過去四個季度一直在回購股票，並且我們堅持我們的部署計劃。

And as far as up the third part of your question, I think was on any potential dis-synergies of raw material. We don't really see any there because if you think about, as you know, raw materials are generally procured on a regional basis and within North and North America, particularly with the growth of PPG CoolMax over years, even without this business, we are a large producer of coatings raw materials.

至於你問題的第三部分，我認為是關於原材料任何潛在的反協同作用。我們並沒有真正看到那裡的任何東西，因為如果你想一想，正如你所知，原材料通常是在北美和北美洲區域內採購的，特別是隨著PPG CoolMax 多年來的增長，即使沒有這項業務，我們是一家大型塗料原料生產商。

Duffy Fischer, Goldman Sachs.

達菲費雪，高盛。

Yes, good morning. Question just around the cost program or a couple. So of the 250 in the charge, how is the cash from that going to flow out? How do we model that?

是的，早安。圍繞成本計劃或幾個問題。那麼這筆費用中的250元，其中的現金又該如何流出呢？我們如何建模？

Then on the 60 million that you get next year, will that be netted against any kind of stranded costs from the sale of the two businesses with a net of that ends up being smaller? And then to get to the rest of the 175, how does that flow in the subsequent years?

那麼，明年你得到的 6000 萬美元，是否會扣除因出售這兩家企業而產生的任何擱淺成本，而淨額最終會變小？那麼對於 175 人中的其餘人來說，接下來幾年的情況又是如何呢？

So Duffy, I'll ask Vince the 250 how does it look from a cash outflow standpoint, and then your additional questions. Vince?

Duffy，我會問 Vince the 250 從現金流出的角度來看情況如何，然後是你的其他問題。文斯？

Yeah. So Duffy, again, program and us today 250 charge immediately of that cash will be spread over a three-year period. I'd say front loaded in the first 15 months or so 15, 18 months. The savings, as we said, are 60 million next year and then pro rata over the following two years. We are making some structural changes to our footprint. So that takes some time as we look at facilities and have to move production around.

是的。因此，達菲再次計劃，我們今天將立即收取 250 筆現金，並將其分攤到三年內。我想說的是，在前 15 個月左右，即 15、18 個月內，會提前加載。正如我們所說，明年的節省額為 6000 萬美元，然後在接下來的兩年中按比例節省。我們正在對我們的足跡進行一些結構性改變。因此，這需要一些時間，因為我們要檢查設施並必須轉移生產。

We do have some some short-term quick gating items as well above 60 million for next year. We'll certainly give the subsequent years. We give our guidance in January and I think is another question on gives a total charges, 150, 275. A savings totaled 60 million next year.

我們確實有一些短期的快速控制項目，明年的數量也將超過 6,000 萬。我們肯定會給出接下來的幾年。我們在一月份給了指導，我認為另一個問題是給出總費用，150、275。

I'm sorry, one other comment. We do have another 70 million of costs that we are required to book as incurred as opposed to upfront. So over the next three years, I would say right now, those are pro rata over the next three years as we move equipment, et cetera, those costs, I have to be booked as incurred.

抱歉，還有另一則評論。我們確實還有另外 7000 萬美元的成本需要在發生時預訂，而不是提前預訂。因此，在接下來的三年裡，我現在會說，這些費用是在未來三年內按比例計算的，因為我們移動設備等，這些費用，我必須按發生時進行登記。

Patrick Cunningham, Citigroup.

派崔克‧坎寧安，花旗集團。

Yes. Hi, good morning. Just a follow up on some of the cash outlay here and just wondering how the M&A pipeline looks as it stands today? Or are there any specific regions or technology technologies you want to target? And then just given the sale of architectural business here and some restructuring in Europe, would it be safe to assume architectural coatings M&A is off the table or are there anything that you would look at and perhaps Latin America or something?

是的。嗨，早安。只是對這裡的一些現金支出進行跟進，只是想知道目前的併購管道是什麼樣的？或者您有什麼特定的目標地區或技術？然後考慮到這裡的建築業務的出售以及歐洲的一些重組，是否可以安全地假設建築塗料併購已不再討論，或者您是否會考慮任何東西，也許是拉丁美洲或其他地方？

Yeah. Hey, Patrick. The M&A pipeline over the last year-and-a-half or so has been I'd say it's thinner than normal. That's changed a little bit with some of our peers, making it a couple of announcements as well as you know, the obviously the two things that we did here, but you know, I you should not think that we would exclude architectural coatings anywhere. It's wherever we have the strongest right to win.

是的。嘿，派崔克。我想說，過去一年半左右的併購管道比正常情況少。我們的一些同行對此做了一些改變，您知道，這是幾項公告，顯然是我們在這裡所做的兩件事，但您知道，我不應該認為我們會在任何地方排除建築塗料。凡是我們最有獲勝權利的地方都是如此。

I'm not going to take a lot of interest in a and in buying a number three anywhere and number four, but we'll look at we have a fiduciary responsibility to look at anything that comes it comes across our desk. And so we'll look at at any opportunity. But you know, as we as I've talked since since I took over last year, we're going to be very focused. We're building an organic growth machine, and we will supplement that with inorganic growth. It to the extent that it adds shareholder value, but we'll be very targeted in how we do that and where do we do it.

我不會對在任何地方購買第三號和第四號有太大興趣，但我們會考慮我們有信託責任來查看我們辦公桌上的任何東西。所以我們會尋找任何機會。但你知道，正如我自去年接任以來一直所說的那樣，我們將非常專注。我們正在建造一個有機成長機器，我們將用無機成長來補充它。它在一定程度上增加了股東價值，但我們將非常有針對性地確定如何做到這一點以及在哪裡做到這一點。

Vincent Andrews, Morgan Stanley.

文森安德魯斯，摩根士丹利。

Thank you. Good morning and congratulations on getting these deals done. Question on the store sale would be I'm assuming that all those stores had operating leases, and I'm just wondering how you consider the transfer of those lease liabilities. Were those considered debt under, I think the recent accounting provision? And does it have any change to your amortization and depreciation or anything like that?

謝謝。早上好，恭喜您完成這些交易。關於商店出售的問題是，我假設所有這些商店都有經營租賃，我只是想知道您如何考慮這些租賃負債的轉移。我認為根據最近的會計規定，這些是否被視為債務？它對你的攤銷和折舊或類似的事情有什麼變化嗎？

Yeah. This is Vince. There's been a call out in our in our 10-Q 10-K on the quantity of those are those leases, along with any almost all other obligations are on transfer with the business. So though as a result of that and certainly that footnote that details, our lease commitments will be updated accordingly.

是的。這是文斯。我們在 10-Q 10-K 中對這些租賃的數量以及幾乎所有其他義務都隨企業轉移進行了呼籲。因此，儘管由於這一點，當然還有腳註的細節，我們的租賃承諾將相應更新。

Josh Spector, UBS.

喬許‧斯佩克特，瑞銀集團。

Yes, good morning. Tim, I was wondering if you could talk about the competence overall in the growth framework that you laid out a little bit more than a year ago. I think we understand this year at the macro hasn't been cooperative, but you're coming in probably below the low end of that 8% to 12% EPS growth framework. And this is a year you had a good amount of help from lower raw materials. So I guess as I look at everything together, I mean, our assumptions, the divestments are modestly dilutive.

是的，早安。提姆，我想知道您是否可以談談您一年多前製定的成長框架中的整體能力。我認為我們知道今年的宏觀政策並不合作，但您的每股盈餘成長框架可能低於 8% 至 12% 的下限。今年，原物料價格下降為你帶來了很大幫助。所以我想，當我綜合考慮所有事情時，我的意思是，我們的假設是，撤資是適度稀釋的。

Maybe the EPS, you talked about a challenging macro, you have cost savings. So as we think about that 8% to 12% EPS growth framework, is that too high of of our for next year as we sit today? And if not, what do you take the bridge that gap?

也許每股收益，你談到了一個具有挑戰性的宏觀，你可以節省成本。因此，當我們考慮 8% 至 12% 的每股盈餘成長框架時，我們今天所坐的明年這個框架是否太高了？如果沒有，您將如何彌補這一差距？

Yeah, Josh. Just real quick when you want to give our 25 guidance on that? Tim will talk about kind of macro moves, but we don't we're not going to give '25 financial guidance. one other thing we would have if we just put the proceeds net proceeds into a share repurchase, which we have made a decision on that yet, but if we just did that, this would not be dilutive transaction will not be dilutive to PPG would be slightly accretive.

是的，喬許。當您想就此向我們提供 25 條指導時，速度很快嗎？提姆將談論宏觀舉措，但我們不會，我們不會提供 25 年的財務指引。如果我們只是將所得淨收益投入股票回購，我們還會有另一件事，我們已經就此做出了決定，但如果我們這樣做，這不會是稀釋性交易，不會稀釋 PPG略有增值。

Yes, Josh, I mean, I am confident in those those goals that we set out last year on, you know, over over the course of the cycle. And there will be some puts and takes dependent on the macro side of our control. But I'm still confident does have the appropriate metrics for us going forward.

是的，喬什，我的意思是，我對我們去年在整個週期中設定的目標充滿信心。會有一些看跌期權和看跌期權取決於我們控制的宏觀方面。但我仍然相信我們確實有適當的指標來推動我們前進。

And as I mentioned earlier, we feel good about the momentum that we have going into into next year and a number of areas. You know, I know we focused on volume a lot year over this past year or so. But every single quarter, I think it's seven or eight quarters in a row now. We have gotten better at it year-over-year volume comps. And a couple of our businesses, most notably aero aerospace and refinish boot and have been doing a great job. And that, of course, helps from a mix standpoint. So I'm feeling good about the momentum that we have on the initiatives that we laid out last year.

正如我之前提到的，我們對明年和許多領域的發展勢頭感到滿意。你知道，我知道在過去的一年左右的時間裡，我們非常關注銷量。但每個季度，我認為現在已經連續七、八個季度了。與去年同期相比，我們在銷售方面取得了更好的成績。我們的一些業務，尤其是航空航太和修補靴，一直表現出色。當然，從混合的角度來看，這會有所幫助。因此，我對我們去年制定的舉措的勢頭感到滿意。

David Begleiter, Deutsche Bank.

大衛‧貝格萊特，德意志銀行。

Thank you. Good morning, Tim and Vince. On raws, given the excess amount of supply in the marketplace from your producers and today's low or no price swings. Terrific. Should we be thinking about a another low single digit decline in raw material costs in 25 for you guys?

謝謝。早上好，蒂姆和文斯。就原料而言，考慮到生產商在市場上的供應量過多，且目前價格波動較低或沒有波動。了不起。我們是否應該考慮在 25 年內原料成本再次出現較低的個位數下降？

David, we've said for for Q4 that we should expect flat again, which would be consistent with Q3 and, again, that's because we're lapping declines of prior years as we look to 25. Frankly, it's too it's too early for us to give you a guide there, but we're just starting negotiations for 2025 contracts with our suppliers.

大衛，我們已經說過，第四季度我們應該預計會再次持平，這與第三季度一致，而且，這是因為當我們展望25 時，我們正在經歷前幾年的下降。也為時過早我們將為您提供指導，但我們剛開始與供應商就 2025 年合約進行談判。

But I guess if there if you think about things like China being maybe a little slower than it, people would like those those negative things from a demand standpoint and a negative things from a macro standpoint, actually help the story from a supply demand on our raws.

但我想，如果你考慮到像中國這樣的事情可能比它慢一點，人們會喜歡從需求角度來看那些負面的事情，從宏觀角度來看，這些負面的事情實際上有助於我們的供應需求的故事。

So that we go into the a year or year-end here with with ample supply upstream of us, so that's the position we're entering our 2025 negotiations with.

這樣我們就可以在進入一年或年底時上游供應充足，這就是我們進入 2025 年談判的立場。

With Dave differently. As we've talked many times with you in the past, we probably have six months visibility here raws. So what we say today, positive or negative change in six months based on external dynamics, I do want to transport it home centers. We've negotiated began negotiations with our suppliers. Almost almost every one of them have excess supply and are willing to work with us in a joint now for the betterment of both parties.

戴夫則不同。正如我們過去與您多次交談的那樣，我們可能有六個月的原始可見性。所以我們今天所說的，六個月內基於外部動態的積極或消極變化，我確實想將其轉移到家鄉中心。我們已經與供應商開始談判。幾乎每一家都有過剩的供應，並且現在願意與我們聯合合作，以實現雙方的共同利益。

Jeff Zekauskas, JPMorgan.

傑夫‧澤考斯卡斯，摩根大通。

Thanks very much. What is the cash proceeds from the sale of the architectural business in the quarter? If you excluded the architectural business, what would have been with volume growth in your performance coatings business and when to prices stop going down in auto volume?

非常感謝。本季出售建築業務的現金收益是多少？如果排除建築業務，您的高性能塗料業務的銷售成長會怎樣？

Yes, let's we'll tag team this one of them, ping-pong it a little bit, Jeff. The first one outtake, we expect the the proceeds from the architectural whose good transaction to be about the cash proceeds to be about $450 million.

是的，傑夫，讓我們來標記其中一個團隊，打一下乒乓球。第一個支出，我們預計建築物的良好交易收益約為現金收益約 4.5 億美元。

The price -- I'll go to the third one and let Vince of fill in the sandwich in the middle there. But on the price side, again, the vast majority of the negative price you see is that is indexed contracts and those are on it time lags of anywhere from 6 to 12 months. So if you go back and look at our wet when when the prices like in auto, for example, started to turn negative, knowing that that's all indexed pricing, we have some that will go to stop and flatten out after six months and some that will flatten out after 12 months.

價格－我會去第三個，讓文斯把三明治填在中間。但在價格方面，您看到的絕大多數負價格都是指數合約，而且這些合約的時間落後為 6 至 12 個月。因此，如果你回頭看看我們的情況，例如，當汽車價格開始轉為負數時，知道這都是指數定價，我們有一些價格會在六個月後停止並趨於平緩，還有一些價格會在六個月後停止並趨於平緩。

Yeah, Jeff, on your question about what's the organic growth and performance, our volume growth and performance of the sales out and you take the delta year over year out on price and volume for the architectural, you at this US-Canada business, you end up almost the exact same numbers for this for this particular quarter.

是的，傑夫，關於你關於有機增長和業績、我們的銷量增長和銷售業績的問題，你在建築的價格和銷量上逐年增加了增量，你在這家美國-加拿大業務中，你最終這個特定季度的數字幾乎完全相同。

Stephen Byrne, Bank of America.

史蒂芬伯恩，美國銀行。

Thank you. Volumes were flat in your raws were flat, comps were down 3.5% or three over 3%. What's driving the lower COGS and Comcast more tailwind on that coming?

謝謝。原始貨量持平，同期銷量下降 3.5%，三者下降超過 3%。是什麼推動了較低的銷售成本和康卡斯特在未來的發展中帶來更大的推動力？

And then just a follow-on to that to index pricing, one of the index to now 6, 12 months, our energy and what's not much to similar or so what's what's driving that? How can we -- how do we anticipate that to change?

然後只是指數定價的後續，其中一個指數到現在 6、12 個月，我們的能源和什麼沒有太多相似之處，或者是什麼推動了這一點？我們如何－我們如何預期這種情況會改變？

Yes, Steve. On COGS, we have we have started to gain on our manufacturing productivity that we've been talking about for the last year and a half. So that set that's helping us in addition to the items that you mentioned are indexed contracts are typically not based on energy other than our silicas business, which we're selling our coatings indexed contracts are based on a basket of raw materials that closely represents the formulation cost for any particular good. So they're not directly linked to either oil or energy that.

是的，史蒂夫。在銷貨成本方面，我們已經開始提高我們過去一年半以來一直在談論的製造生產力。因此，除了您提到的那些對我們有幫助的項目之外，索引合約通常不是基於我們的二氧化矽業務以外的能源，我們正在銷售我們的塗料索引合約基於一籃子原材料，這些原材料密切代表了任何特定商品的配方成本。所以它們與石油或能源沒有直接關聯。

And if you remember, Stephen, at the beginning of an inflation cycle, we typically lag on price on the way up. And so again, as we get to the end of the cycle, we're lagging on price on the way down. So there's probably a three or six month pause on both sides of that that are dislocated from when the raws moved.

史蒂芬，如果你還記得的話，在通貨膨脹週期開始時，我們通常會落後於價格的上漲。同樣，當我們進入周期結束時，我們在價格下跌過程中落後了。因此，與原料移動時相比，雙方可能會有三到六個月的停頓。

(audio in progress)

（音訊進行中）

Thank you and good morning. I appreciate you don't want to give 2025 guidance holistically, but perhaps you could comment naturally with regard to the deal, if we take into account the various tax angles and stranded cost, you to think that this US and Canada divestitures likely to be slightly dilutive or slightly accretive or even material to your 2025 earnings trajectory?

謝謝你，早安。我理解您不想全面給出 2025 年的指導，但也許您可以自然地對這筆交易發表評論，如果我們考慮到各種稅收角度和擱淺成本，您認為美國和加拿大的資產剝離可能是對您2025年的獲利軌跡略有稀釋或略有增值甚至重要？

And then secondly, as a practical matter, will you move it to discontinued operations in the fourth quarter or just keep it in a normal course?

其次，作為一個實際問題，您會在第四季度將其轉為停止營運還是保持正常運作？

Yeah, Kevin. This is Vince. (audio in progress) If you just assume a share buyback at yesterday's share price for the net proceeds that Tim just alluded to, we will be will be slightly net positive from an accretion perspective next year. We do have about $15 million of stranded costs. You saw the restructuring announcement this morning. That's the start to tackle those stranded costs that will certainly activate on fairly quickly.

是的，凱文。這是文斯。 （音訊正在進行中）如果您假設以昨天的股價回購蒂姆剛才提到的淨收益，那麼從明年的成長角度來看，我們將略微實現淨收益。我們確實有大約 1500 萬美元的擱置成本。你今天早上看到了重組公告。這是解決那些肯定會很快啟動的滯留成本的開始。

With respect to the accounting on our intention is to move this to discontinued operations. It's over 10% of the company will go through that those mechanics here over the next several weeks. And that that yet or upon closer here will hopefully be closing them as we said in the fourth quarter. But we will move this discontinued operations accordingly.

關於會計，我們的目的是將其轉移到已終止經營業務。公司超過 10% 的員工將在接下來的幾週內接受這些機械師的培訓。正如我們在第四季度所說，目前或接近這裡將有望關閉它們。但我們將相應地轉移已停止的業務。

Frank Mitsch, Fermium Research.

弗蘭克米奇，費米研究中心。

Yes, hi. This is [Devon Adams] sitting in for Frank on. Congrats on the transaction. To that point. Then it's about taking costs out. You've guided $24 million to $300 million in corporate costs. Just curious as to whether you think you're going to drive that corporate costs down to?

是的，嗨。這是[德文·亞當斯] 代替弗蘭克發言。恭喜交易成功。到那時。然後就是削減成本。您指導的公司成本為 2,400 萬至 3 億美元。只是好奇您是否認為您會將企業成本降低到？

And then and then secondly, Tom, really good progress on refinish. You added 100 more moored units. Just curious why the guidance for 4Q is flat on refinish? And what should we think about the growth in 2025 for refinish? Thank you.

其次，湯姆，修補方面確實取得了很大進展。您又新增了 100 個繫泊單元。只是好奇為什麼第四季的修補漆指引持平？我們該如何看待 2025 年修補漆的成長？謝謝。

Well, Devontem I think you maybe we should be practicing for look likely loss against the Steelers this weekend, but I'll take your second question. I'll let Vince take your first.

好吧，德文特姆，我認為你也許我們應該練習一下，以防本週末對陣鋼人隊的比賽看起來可能會失敗，但我會回答你的第二個問題。我會讓文斯拿走你的第一個。

You know, refinish, we've said multiple times a new I think, you know, Frank, I understand that business with the two-step distribution. There's always a lot of noise in the chain. You're stocking destocking, all the distributors manage their cash differently. And so yes, we really tried to look at that on a multi-quarter basis. So have you taken refinish? Total year to date? Sales are flat, but insurance claims are significantly down. So we're we're picking up about 500 net shop wins per quarter, and that's a pretty consistent run rate. So we really watch the net wins and the multiple quarter sales.

你知道，修補，我們已經說過很多次了，我想，你知道，弗蘭克，我理解兩步驟分配的業務。鏈條中總是有很多噪音。你正在庫存去庫存，所有經銷商都以不同的方式管理他們的現金。所以，是的，我們確實嘗試在多個季度的基礎上審視這一點。那你有做修補嗎？今年迄今總計？銷售額持平，但保險理賠大幅下降。因此，我們每季獲得約 500 家淨商店勝利，這是一個相當穩定的運行率。因此，我們確實關注淨收益和多個季度的銷售額。

Now, one other thing about Q4 of last year, we did have a few fairly significant pull forward relative to timing of price increases. We're not anticipating that our distributors will do that as much this year. So all those things together to give that lead to the table that shows a difference in organic sales growth between Q3 and Q4.

現在，去年第四季的另一件事是，相對於價格上漲的時間，我們確實有一些相當大的提前。我們預計我們的經銷商今年不會這樣做。因此，所有這些因素共同構成了表格，顯示了第三季和第四季有機銷售成長的差異。

Yeah. [Frank], on your question on corporate costs, we haven't finalized our 2025 profit plan yet a lot of moving pieces in there, including things like pension, medical costs, et cetera, that we need to get finalized. I'd say from a structural basis, the structural costs in corporate, we would expect with this cost program, those structural cost to be lower. But will I have to see how some of these other items come out. And we'll certainly give that update in January with our with our 2025 guidance.

是的。 [弗蘭克]，關於你關於企業成本的問題，我們還沒有最終確定 2025 年的利潤計劃，還有很多變動的內容，包括退休金、醫療費用等，我們需要最終確定。我想說，從結構性基礎來看，企業的結構性成本，我們預期透過這個成本計劃，這些結構性成本會更低。但我必須看看其他一些項目是如何產生的。我們肯定會在 1 月透過 2025 年指導進行更新。

John McNulty, BMO.

約翰·麥克納爾蒂，BMO。

Yes, good morning. Thanks for taking my question and congratulations again on the asset sale. So maybe we can speak to the autos outlook. So clearly, things came in a bit worse than than expected, I guess, at least what the consultants are looking at. Is this kind of lap drags on for another quarter or so? And then we start to get to positive positive growth in the first quarter of next year. Is that what you're kind of expecting hearing from your customers as well? Or is there any reason to think this could either end earlier and later than that in terms of in terms of some of the pressures? I guess, how are you thinking about that business?

是的，早安。感謝您提出我的問題，並再次祝賀資產出售。所以也許我們可以談談汽車的前景。很明顯，事情比預期的要糟糕一些，我想，至少顧問們正在考慮這一點。這樣的一圈是否還要再拖四分之一左右？然後我們在明年第一季開始實現正成長。您是否也希望從客戶那裡聽到這樣的聲音？或者是否有任何理由認為，就某些壓力而言，這可能會比這更早或更晚結束？我想，您對這項業務有何看法？

And then also just on the cost cutting program, how much of it's going to be tied into the auto and industrial segment? First as part of your European outlook Versa versus just kind of more broad cuts across Europe?

然後，就成本削減計劃而言，其中有多少將與汽車和工業領域相關？首先，作為您歐洲展望的一部分，Versa 還是在整個歐洲進行更廣泛的削減？

John will first the way you described you answered the question exactly how I would answer it. That is what we're hearing from our auto customers is this downturn and builds an increase in production downtime, et cetera, is going to continue into Q4. And honestly, it's something that we're watching very closely because you know, there's one particular customer in the US where there's some strike talk. And so and that's true any strike there is not built into our guide. So we're watching auto very closely as we move into Q4. But as you said, we are expecting based on what we're hearing and including based on what we see from I suggest we are expecting an uptick in in 2025.

約翰將首先按照您所描述的方式回答問題，而我將如何回答。這就是我們從汽車客戶那裡聽到的情況，這種低迷和生產停機時間的增加等將持續到第四季度。老實說，這是我們正在密切關注的事情，因為你知道，美國有一個特定的客戶在談論罷工。因此，確實如此，任何罷工都沒有納入我們的指南中。因此，隨著進入第四季度，我們正在密切關注汽車行業。但正如您所說，我們的預期是基於我們所聽到的情況，包括我們所看到的情況，我建議我們預計 2025 年會上升。

But the cost of -- maybe Vince can give you exact numbers, but there is a portion of that self-help that is dedicated to the automotive business and in particular, the auto motive footprint in Europe and elsewhere. But we've got we've got some work to do with works councils and things like that before we get the final decisions made in Europe. But certainly, auto will be a part of the self-help.

但是，也許文斯可以給你確切的數字，但自助的一部分是專門用於汽車業務的，特別是歐洲和其他地方的汽車足跡。但在我們在歐洲做出最終決定之前，我們還需要與勞資委員會等進行一些工作。但可以肯定的是，汽車將成為自助的一部分。

Yes, John, just a couple comments on the industry. What we do see what we've seen in Q3 here are the industry healthily reacting to inventory levels. So inventory levels are not out of control at this point. So we think the discipline there and sales positive. Secondarily, what some of the carmakers are doing is taking early downtime to do change overs earlier. We think of how those to the new models. We think we'll have a little bit of a benefit based on some of the particular plants we have, et cetera. So good healthy inventory or managing that inventory properly. And the changeovers we think will give us some incremental benefit next year.

是的，約翰，我只是對這個行業的一些評論。我們在第三季所看到的是產業對庫存水準的健康反應。因此，目前庫存水準並未失控。所以我們認為那裡的紀律和銷售是積極的。其次，一些汽車製造商正在做的是提前停機以儘早進行更換。我們考慮如何將這些應用到新模型中。我們認為，基於我們擁有的一些特定植物等，我們將會獲得一些好處。如此良好的健康庫存或正確管理庫存。我們認為這些轉變將為我們明年帶來一些增量收益。

Laurent Favre, BNP Paribas.

洛朗法夫爾，法國巴黎銀行。

Yes, good morning. The first question is on the aerospace business. I think you're getting to some slowdown. I was wondering how you factored in, I guess, on the NGL volumes. I think so as possible into 2025.

是的，早安。第一個問題是關於航空航天業務。我認為你的速度正在放緩。我想知道你是如何考慮 NGL 體積的。我認為到 2025 年才有可能。

Hello, Laurent. We are not seeing a slowdown. There's one customer that signs dry currently, but the backlogs are so big in OE. and and after market that all that does is we shift our production lines around a little bit, and military is just red hot. So we are not seeing a slowdown. In fact, we continue to we continue to see strong demand across the board to for our technology.

你好，洛朗。我們沒有看到經濟放緩。目前有一位客戶已簽單，但原廠訂單積壓量非常大。在市場之後，我們所做的就是稍微改變我們的生產線，軍事正在變得炙手可熱。所以我們沒有看到經濟放緩。事實上，我們繼續看到對我們技術的全面強勁需求。

We're projecting for fourth quarter high-single-digit growth, and there could be upside for that. And going into 2025, I expect another outstanding year for our aerospace business.

我們預計第四季將實現高個位數成長，而且可能還有上升空間。進入 2025 年，我預計我們的航空航太業務將迎來出色的一年。

Yes. I think when we're running into here and around as we've had a couple of years of exceptionally strong growth, we're just running and the compounding a large law of large numbers, the industry's very, very robust. So it's just it's just the mathematics of large numbers, but we're not seeing any slowdown.

是的。我認為，當我們遇到這裡和周圍的情況時，因為我們已經經歷了幾年異常強勁的增長，我們只是在運行並複合大數定律，該行業非常非常強勁。所以這只是大數的數學，但我們沒有看到任何放緩。

Mike Harrison, Seaport Research Partners.

麥克·哈里森，海港研究夥伴。

Hi, good morning. To add another follow-up question kind of on the aerospace business side. Sounds like you've been capacity constrained there and the backlog or demand is still growing maybe faster than you can de-bottleneck or add capacity. So what are your longer-term plans for bringing on some additional capacity in that aerospace business? And is that you kind of at the top priority in terms of where you'd like to focus your organic growth initiatives are now that you are getting through this portfolio optimization effort that the US/Canada architectural business? Thank you.

嗨，早安。增加另一個關於航空航天業務方面的後續問題。聽起來您的產能一直受到限制，而積壓或需求的成長速度可能比您消除瓶頸或增加產能的速度要快。那麼，您在航空航太業務中增加產能的長期計畫是什麼？既然您正在完成美國/加拿大建築業務的投資組合優化工作，那麼您是否將有機成長計畫的重點放在首位？謝謝。

(audio in progress) perfect question because it's exactly spot on. We love our team and products and customers in the architecture US. Canada business. But this gives us the opportunity to really focus our resources, not only our capital and capacity investment resources, but our human and management bandwidth resources on businesses like aerospace and yes, we are looking at long-term capacity additions in that business in parallel with continued bottlenecking and productivity at our existing facilities. So we have we're very bullish, not only on Q4 2025, but multiyear of kind of momentum for aerospace, and we'll invest accordingly.

（音訊正在進行中）完美的問題，因為它完全正確。我們熱愛美國建築界的團隊、產品和客戶。加拿大生意。但這使我們有機會真正集中我們的資源，不僅是我們的資本和產能投資資源，還有我們的人力和管理頻寬資源，用於航空航天等業務，是的，我們正在同時考慮該業務的長期產能增加我們現有設施的生產力持續面臨瓶頸。因此，我們非常看好，不僅看好 2025 年第四季度，而且看好航空航太業的多年勢頭，我們將進行相應的投資。

Aleksey Yefremov, KeyCorp.

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

Good morning, everyone. inaudible your sales were up mid-single digits and three to flat expectation in the fourth quarter. Could you just talk about these dynamics here is as comps or is this business just slowing down?

大家早安。聽不見，第四季的銷售額成長了中個位數，與預期持平。您能否談談這些動態是作為比較還是這項業務只是在放緩？

I answered a little bit of this on an earlier question, Aleksey, but it's not it's not slow down in the body. Shop activity is not a slowdown in sell out, if you will. It's really more a phenomenon of inventory management by the channel, particularly here in the United States. Combined with a comp issue related to pre-buying last year that we likely will not have this year.

我在之前的問題上回答了一點，Aleksey，但事實並非如此，身體的速度並沒有減慢。如果你願意的話，商店活動並不是銷售放緩。這其實更多的是一種渠道庫存管理的現象，尤其是在美國。再加上去年與預購相關的補償問題，今年我們可能不會再遇到。

But now, we're, again, this is we looked at this business, even though we've reported quarterly on this chart, sometimes that gets a little frustrating because it's really a multi-quarter and sometimes even annual look, they have to take a look at our sell in to the channel.

但現在，我們再次審視這項業務，儘管我們在這張圖表上按季度報告，有時這會讓人有點沮喪，因為這實際上是多季度甚至有時甚至是年度的情況，他們必須看看我們向通路的賣出。

And just again, Aleksey, on that pre-buy that Tim mentioned, that was ahead of a January 1 price increase (audio in progress) increase that there was a prebuy ahead also in the comp reflected that.

Aleksey，關於 Tim 提到的預購，是在 1 月 1 日價格上漲（音頻正在進行中）之前進行的，在比較中也有預購反映了這一點。

Arun Viswanathan, RBC.

阿倫·維斯瓦納坦，加拿大皇家銀行。

Hey, guys. Thanks for taking my questions. And first half on the architectural sale on, I think I guess I was under the impression that EBITDA margins are more in the 4% range instead of 2%. But just wanted to clarify, that looks like you're implying kind of a $40 million of EBITDA.

嘿，夥計們。感謝您回答我的問題。上半年的建築銷售，我想我的印像是 EBITDA 利潤率更多在 4% 範圍內，而不是 2%。但我想澄清一下，您似乎是在暗示 4000 萬美元的 EBITDA。

And then secondly, when you think about volume growth, I guess going forward, sounds like maybe 25.6, we're going to be mostly impacted by industrial and automotive. Obviously, in our aero can sometimes be at the upper end of industrial growth rates on and maybe some of your other verticals like protective and marine or maybe even pocket and maybe at the lower end on a structural basis. But in general, looks like you've been very levered to industrial production and automotive production. Are those the kind of the main two factors that would kind of driver volumes going forward? Or how should we think about your top line evolves from here?

其次，當你考慮銷售成長時，我想未來聽起來可能是 25.6，我們將主要受到工業和汽車產業的影響。顯然，在我們的航空領域，有時可能處於工業成長率的高端，也許還有其他一些垂直產業，如防護和海洋，甚至可能處於結構基礎上的低端。但總的來說，看起來您對工業生產和汽車生產的槓桿作用很大。這些是影響未來司機數量的兩個主要因素嗎？或者我們應該如何看待您的頂線從此演變？

Yeah, Arun. This is Vince. I'll take the question on the architectural business and it's more the latter what you said. So if you do the math and we gave all the numbers, I do the math, if you could certainly that, that we're selling that 2% business, 2% EBITDA business.

是的，阿倫。這是文斯。我將回答有關建築業務的問題，您所說的更多是後者。因此，如果你算一下，我們給出了所有的數字，我也會算一下，如果你能確定的話，我們正在出售 2% 的業務，2% 的 EBITDA 業務。

And again, that includes all the assets of the liabilities, basically a clean sample of the business. And as Tim alluded to before, we do have exclusive supply agreements a multiyear basis on a go-forward basis, that will be an organic numbers.

再說一遍，這包括所有資產和負債，基本上是企業的乾淨樣本。正如蒂姆之前提到的，我們確實在未來的基礎上簽訂了多年的獨家供應協議，這將是一個有機數字。

Yes, relative to kind of the volume and growth, certainly the auto OEM and general industrial have been the detractors in Q3 and that will likely carry into Q4. But if we look at the broader enterprise that we were up two, we've been progressing every quarter with a number of businesses that up positive growth and we're up to seven positive was flat to down. So yes, those two are down and any uptick there gives us gives us a nice leverage, but we do expect the positive momentum in all those other businesses to to continue. So I think that's more it's really combined story rather than just auto and industrial.

是的，相對於數量和成長，汽車原始設備製造商和一般工業無疑是第三季的不利因素，而且這種情況可能會持續到第四季。但如果我們看看更廣泛的企業，我們成長了兩位，我們每季都在進步，許多企業都實現了正成長，而我們有多達七項業務是持平到下降的。所以，是的，這兩項業務都在下降，任何上升都為我們帶來了很好的槓桿作用，但我們確實預計所有其他業務的積極勢頭將持續下去。所以我認為這更多的是它真正結合的故事，而不僅僅是汽車和工業。

Now, those two specifically, as I mentioned, IHS. and what we're hearing is that auto will have a modest uptick builds next year and down from being down with mid- to high-single digits this year. That's a pretty big pivot. And and general industrial, we are expecting it to be better in 2025, albeit not as strong as those other businesses that already have the positive momentum.

現在，正如我所提到的，IHS 特別是這兩個。我們聽到的是，明年汽車銷售將小幅上升，而今年的下降幅度為中高個位數。這是一個相當大的支點。至於一般工業，我們預計 2025 年會更好，儘管不如其他已經擁有積極勢頭的企業那麼強勁。

Chris Parkinson, Wolfe Research.

克里斯帕金森，沃爾夫研究中心。

Great. Thank you so much. Tim, I don't think you have to tell you that you've had a pretty busy year, but when you take a step back and you look at kind of the results of PCXEO. North American architectural, you know, how should investors be generally thinking about the growth rate in the last couple of years on volumes have been 100,000 having 26. How comfortable are you that you can actually outgrow your respective end markets based on whether it's content in aerospace is new products it, you know, obviously across your refinish and move log and even down to Marine, how should we be conceptualizing that now that ultimately that's pretty cleaned up? Thank you.

偉大的。太感謝了。提姆，我認為你不必告訴你這一年非常忙碌，但當你退後一步，看看 PCXEO 的結果時。北美建築業，你知道，投資者應該如何普遍考慮過去幾年的增長率，銷量已達到100,000 座，擁有26 座。是否滿足於航空航天是新產品，你知道，顯然在你的整修和移動日誌中，甚至到海洋，我們應該如何概念化，既然最終已經清理乾淨了？謝謝。

Thank you, Chris, and let me -- this is Vince. Let me start real quick. I just had a quick comment here, but if you look at the architectural US business has grown nicely this year on the top line. As we alluded to since we since we talked in February on our call, and certainly as we talk to investors throughout the year, we've made commensurate investments to get that growth on that top line. So the bottom line hasn't grown nearly as much of the top line this particular year because we've been investing in the business. So that helps you. I think, as you go through your algorithm on the PC.

謝謝你，克里斯，讓我——這是文斯。讓我快速開始。我剛剛在這裡發表了簡短的評論，但如果你看看今年美國的建築業務在營收上成長得很好。正如我們自 2 月的電話會議以來所提到的，當然，當我們全年與投資者交談時，我們已經進行了相應的投資，以實現營收的成長。因此，今年的淨利潤成長幅度遠不及營收成長，因為我們一直在對該業務進行投資。所以這對你有幫助。我想，當你在電腦上檢查你的演算法時。

Yeah. And on that, to that point, that's one. one of the reasons why we were able to successfully sell it to a good buyer is because of that momentum that we're gaining from the investments on the top line. But then also it it just validates a bit the rationale for selling it in the first place in that we're investing in those growth initiatives in that business as opposed to shifting some of those resources elsewhere. So now. But longer term, I'm absolutely convinced that the momentum that we're gaining. And you mentioned 25, 26, combined with the portfolio actions that were taken, we will have a higher growth company and a higher margin company. And that's why I stand behind those.

是的。就這一點而言，就是這樣。我們能夠成功地將其出售給好買家的原因之一是我們從營收投資中獲得的動力。但它也只是驗證了首先出售它的理由，因為我們正在投資於該業務的那些成長計劃，而不是將其中一些資源轉移到其他地方。所以現在。但從長遠來看，我絕對相信我們正在獲得的動力。你提到的25、26，結合所採取的投資組合行動，我們將擁有一家更高成長的公司和一家更高利潤率的公司。這就是為什麼我支持這些。

Those are growth in top line and bottom line growth numbers that I that I talked about last year for for kind of a much sharper and more focused PPG. going forward. So the macros this year where the macros and they were big negatives. In some cases, some patients are some businesses for for growth for us, but we're controlling what we can controllable, which is how we invest our growth capital, how we invest our management capital and complementing it with self-help to drive EPS.

這些是我去年談到的頂線和底線成長數字，以實現更清晰、更集中的 PPG。繼續前進。因此，今年的宏觀調控是巨大的負面影響。在某些情況下，有些病人對我們來說是一些為了成長的業務，但我們控制的是我們能控制的，這就是我們如何投資我們的成長資本，我們如何投資我們的管理資本，並透過自助來補充它來推動每股收益。

Laurence Alexander, Jefferies.

勞倫斯·亞歷山大，杰弗里斯。

Good morning. This is Dan Rizzo on for Laurence. Thanks for squeezing me in. I just wanted to follow up on a comment you made about insurance claims being down all in the year, but you're taking share. But I was wondering if insurance claims are down because of maybe closing collision avoidance technology is growing and that's kind of a secular change? Or is it something just with timing or just purely for this year?

早安.我是勞倫斯的丹·里佐。謝謝你讓我參與其中。但我想知道保險索賠是否因為封閉防撞技術的發展而下降，這是長期的變化？或只是時間安排或純粹是為了今年？

Yes, I think there's a number of reasons. I don't think it's heavily influenced by the anti-collusion Technologies was that while those are great technologies, frankly, they're offset by distracted driving, unfortunately, particularly cellphone drew driven.

是的，我認為有很多原因。我不認為它受到反共謀技術的嚴重影響，雖然這些都是偉大的技術，但坦白說，它們被分心駕駛所抵消，不幸的是，特別是手機駕駛。

The drop in insurance claims is more driven by one totals are higher. And so there's less repair claims and more replace claims. It's also driven by the type of miles driven that we're getting compared to maybe historical also just given the broader economy, the economy and this is a transitory item, I believe the broader economy, some folks are not turning in their insurance claims because of affordability of insurance rates going up and others are not turning in insurance claims of just because they're pocketing pocketing the cash instead of getting repaired.

保險理賠下降的主要原因是理賠總額增加。因此，維修索賠減少，更換索賠增加。它也受到我們與歷史記錄進行比較的行駛里程類型的驅動，考慮到更廣泛的經濟，經濟，這是一個暫時的項目，我相信更廣泛的經濟，有些人不會提交保險索賠，因為保險費率上升的負擔能力，而其他人則不提交保險索賠，只是因為他們把現金裝進口袋而不是得到修理。

I believe those two are transitory. As you know, I think as interest rates come down, that inflation gets under control, I think those two with consumer confidence coming back, those last two will improve.

我相信這兩者都是暫時的。如你所知，我認為隨著利率下降，通貨膨脹得到控制，我認為隨著消費者信心的恢復，後兩者將會改善。

Aron Ceccarelli, Berenberg.

阿隆·切卡雷利，貝倫貝格。

Hello. Good morning and congratulation on the on the same. Maybe he can you talk a little bit about the outlook for protective and marine? Had a comparative basis for Q4 is not very different from fee, talking a little bit about us down. I would like to understand what has changed. And then also maybe you can update on the on the change of strategy in marine would be great and how you see that.

你好。早上好，恭喜您。也許他能談談防護和海洋領域的前景嗎？有一個比較基礎的Q4與費用沒有太大差別，我們稍微談談。我想了解發生了什麼變化。也許您還可以更新有關海洋戰略變化的最新資訊以及您對此的看法。

Sure. We're glad to get a question about this business because it's been it's been doing great for us. I think I'm accurate. That is our sixth straight quarter of volume growth and organic growth in Protective & Marine doing well. But when you go backwards on six, we're starting to comp the beginning of some really strong uptick, particularly late last year and beginning beginning of this year.

當然。我們很高興收到有關這項業務的問題，因為它對我們來說一直表現良好。我想我是準確的。這是我們防護與海事業務連續第六個季度的銷售成長和有機成長，表現良好。但當你倒退到六時，我們開始計算一些真正強勁上升的開始，特別是去年年底和今年年初。

So we feel good about it. There's there's a lot of infrastructure spending, a lot of marine aftermarket spending, shift, buildings returning. You've got a lot of LNG. spending. You got near-shoring spending. So we feel good about this business.

所以我們對此感覺良好。有大量的基礎設施支出、大量的船舶售後市場支出、輪班、建築物的回歸。你有很多液化天然氣。開支。你有近岸支出。所以我們對這項業務感覺良好。

And marine, specifically to your question, we've been doing really well on marine aftermarket. We still participate in marine newbuild. We like that place. But we love marine aftermarket because we've got some really differentiated technologies segment line in particular, which is frankly taking off because it's such a fuel savings to our customers and such to sustainability improvement for our customers.

至於船舶，特別是對於你的問題，我們在船舶售後市場上做得非常好。我們仍然參與海洋新建工程。我們喜歡那個地方。但我們熱愛船舶售後市場，因為我們擁有一些真正差異化的技術細分產品線，坦白說，這些技術正在起飛，因為它為我們的客戶節省了燃料，並為我們的客戶提高了永續性。

So bullish on the business feels good, don't over interpret the the flat in Q4. That's more of a comp issue.

因此，看好業務感覺很好，不要過度解讀第四季的持平。這更多的是一個補償問題。

Jaideep Pandya, On Field Investment Research.

Jaideep Pandya，實地投資研究。

Thanks a lot of first question. I was just on your Deco strategy now that you're exiting North America and what about Europe. I know you have highlighted that Europe is a very profitable business and you obviously acquired the Gorilla. But given now there is one of your close competitors also doing a strategic review of their core business. Do you intend to potentially add to your Deco business? Or are there any further steps towards maybe reducing the Deco exposure in this regard?

非常感謝第一個問題。我剛剛討論了你們的德科戰略，因為你們要退出北美，那麼歐洲呢？我知道您強調歐洲是一個非常有利可圖的行業，而且您顯然收購了大猩猩。但鑑於現在您的一位緊密競爭對手也在對其核心業務進行策略審查。您是否打算拓展您的 Deco 業務？或者是否有任何進一步的措施來減少德科在這方面的暴露？

And then the second question, sorry to zoom in on packaging. But I think there's been some share shifts around packaging in the last one year. If the share goes back to one of your other US competitors from the ones that you've gained, should we still expect growth of course, you gain share because some of your other competitors are a little bit more skeptical of negative about packaging, the new guys. So just wanted to double check on that once again. Well down tailing North America.

然後是第二個問題，抱歉放大了包裝。但我認為過去一年包裝方面的份額發生了一些變化。如果份額從您獲得的份額回到您的其他美國競爭對手之一，我們是否仍然期望增長，當然，您獲得份額是因為您的其他一些競爭對手對包裝的負面影響更加懷疑，新人。所以只是想再仔細檢查一下。遠遠落後於北美。

Thank you, Jaideep. I'll take the first one. Vince, you want to take this the packaging one just divide and conquer here. And we have been behind it to focus on those countries where we were number one or a strong number. two of that is where we have a proven track record of delivering good earnings, good cash and good growth.

謝謝你，賈迪普。我就拿第一個。文斯，你想把這個包裝拿走，分而治之。我們一直致力於關注那些我們排名第一或強大的國家。其中兩個是我們在提供良好的利潤、良好的現金和良好的成長方面擁有良好的記錄。

And so Europe specifically where Number one, I believe in 10 countries and some of that coming from a ticker LS. seven coming from other deals and were strong number two in other countries. Some of the self-help that I mentioned earlier will apply to those businesses in Europe that will improve the profitability even further. So we'll adjust, but we will stay in those businesses is likely number were exempt a strong number one position, and we're shooting the lights out every quarter and other places in Asia Pacific, Australia, we've got a strong number two position.

因此，特別是歐洲，我相信有 10 個國家排名第一，其中一些來自股票 LS。其中七項來自其他交易，在其他國家排名第二。我之前提到的一些自助措施將適用於歐洲的那些企業，這將進一步提高獲利能力。因此，我們將進行調整，但我們將留在這些業務中，這些業務可能會被排除在第一的位置，而且我們每個季度都會熄燈，在亞太地區、澳大利亞的其他地方，我們有很強的數字兩個位置。

So we as I said in my opening remarks, those businesses are important to our portfolio core to our portfolio and we'll keep investing. Now that said, you asked about M&A potential in in Deco line, it would only we would only be answered did if it fit those criteria that I just described, probably not in Europe because we've already got a very well-established position in Europe. But we will we have the responsibility to our shareholders to look at things that come on market and we'll assess them.

因此，正如我在開場白中所說，這些業務對我們的投資組合核心非常重要，我們將繼續投資。話雖如此，您詢問了 Deco 系列的併購潛力，只有符合我剛才描述的標準，我們才會得到回答，可能不會在歐洲，因為我們已經在歐洲。但我們對股東負有責任，關注市場上出現的產品並對其進行評估。

It's a little early yet for the ones that were just recently announced by our competitors. Packaging, Vince?

對於我們的競爭對手最近剛宣布的產品來說，現在還為時過早。包裝，文斯？

On packaging, I think you hit the nail in the head in terms of history. There was some share shift exiting, like I'd say, '22 to '23, et cetera. That's all lapped. We did pick up share for the full year of '24. We still are fairly confident we're going to pick up more share heading into '25.

關於包裝，我認為您從歷史角度切中要害。存在一些份額轉移，就像我說的，'22 到 '23，等等。就這樣全部過去了。我們確實提高了 24 年全年的份額。我們仍然相當有信心在進入 25 年後我們將獲得更多份額。

So you'll see positive top line comps in '25 as well based on what we're talking to with respect to our packaging customers. So again, our technologies and the services we provide are the reasons why we're maintaining on a net basis picking up share.

因此，根據我們與包裝客戶的交談，您也會在 25 年看到正面的營收比較。再說一次，我們的技術和我們提供的服務是我們保持淨份額成長的原因。

There are no further questions at this time. I'll turn the call back over to Alex Lopez.

目前沒有其他問題。我會將電話轉回亞歷克斯·洛佩茲。

Thank you, Elliot. We appreciate your interest and confidence in PPG. This concludes our third-quarter earnings call.

謝謝你，艾利奧特。我們感謝您對 PPG 的興趣和信任。我們的第三季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。您現在可以斷開連線。