RPM International Inc (RPM) 2025 Q1 法說會逐字稿

Good day, and welcome to the RPM International fiscal first quarter 2025 earnings conference call. (Operator Instructions) Please note, today's event is being recorded. I would now like to turn the conference over to Matt Schlarb, Vice President, Investor Relations and Sustainability. Please go ahead.

美好的一天，歡迎參加 RPM International 2025 年第一季財報電話會議。（操作員說明）請注意，今天的活動正在錄製中。現在我想將會議交給投資者關係和永續發展副總裁 Matt Schlarb。請繼續。

Thank you, Rocco, and welcome to RPM International's conference call for the fiscal 2025 first quarter. Today's call is being recorded. Joining today's call are Frank Sullivan, RPM's Chair and CEO; Rusty Gordon, Vice President and Chief Financial Officer; and Michael Laroche, Vice President, Controller and Chief Accounting Officer. This call is also being webcast and can be accessed live or replayed on the RPM website at www.rpminc.com. Comments made on this call may include forward-looking statements based on current expectations that involve risks and uncertainties, which could cause actual results to be materially different.

謝謝 Rocco，歡迎參加 RPM International 2025 財年第一季的電話會議。今天的通話正在錄音。參加今天電話會議的還有 RPM 董事長兼執行長 Frank Sullivan； Rusty Gordon，副總裁兼財務長；副總裁、財務總監兼首席會計官 Michael Laroche。這次電話會議也進行了網路直播，可以在 RPM 網站 www.rpminc.com 上進行現場直播或重播。本次電話會議的評論可能包括基於當前預期的前瞻性陳述，涉及風險和不確定性，這可能導致實際結果有重大差異。

For more information on these risks and uncertainties, please review RPM's reports filed with the SEC. During the conference call, references may be made to non-GAAP financial measures. To assist you in understanding these non-GAAP terms, RPM has posted reconciliations to the most directly comparable GAAP financial measures on the RPM website. Also, please note that our comments will be on an as-adjusted basis, and all comparisons are to the first quarter of fiscal 2024 unless otherwise indicated. We have provided a supplemental slide presentation to support our comments on this call. It can be accessed in the presentation and webcast section of the RPM website at www.rpminc.com.

有關這些風險和不確定性的更多信息，請查看 RPM 向 SEC 提交的報告。在電話會議期間，可能會提及非公認會計準則財務指標。為了幫助您理解這些非 GAAP 術語，RPM 在 RPM 網站上發布了最直接可比較的 GAAP 財務指標的調整表。另請注意，除非另有說明，我們的評論將基於調整後的基礎上，所有比較均與 2024 財年第一季進行。我們提供了補充幻燈片演示來支持我們對此電話會議的評論。可以在 RPM 網站 www.rpminc.com 的演示和網路廣播部分訪問它。

Now I would like to turn the call over to Frank.

現在我想把電話轉給弗蘭克。

Thank you, Matt, and thank you to everyone for joining us today. We're hosting this call from our Innovation Center of Excellence in Greensboro, North Carolina. And I want to begin today by sending our sincere sympathy to all of the people in North Carolina and elsewhere who are impacted by Hurricane Helene. The devastation is heartbreaking, and our businesses are contributing to initial response efforts to help bring some sense of normalcy back to people's lives. This includes Legend Brands, which is supplying disaster restoration equipment and products to help people and businesses save and restore homes with water damage.

謝謝你，馬特，也謝謝大家今天加入我們。我們在北卡羅來納州格林斯博羅的卓越創新中心主持這次電話會議。首先，我想向北卡羅來納州和其他地區所有受颶風海倫影響的人們表示誠摯的慰問。這場災難令人心碎，我們的企業正在為初步應對工作做出貢獻，以幫助人們的生活恢復一些正常感。其中包括 Legend Brands，該公司提供災難復原設備和產品，幫助人們和企業拯救和恢復遭受水災的房屋。

At our Tremco business, our teams are helping customers with roofing and other issues by providing tarps and generators. They're also supplying water and food to people in need, including RPM associates affected by the hurricane. We're all hoping for a fast recovery for the impacted region, and RPM businesses and associates are contributing to this effort.

在 Tremco 業務中，我們的團隊透過提供防水布和發電機來幫助客戶解決屋頂和其他問題。他們還向有需要的人提供水和食物，包括受颶風影響的 RPM 員工。我們都希望受影響的地區能夠快速恢復，RPM 企業和員工正在為此做出貢獻。

Turning to our first quarter results, I'll begin with a high-level review, then turn the call over to Mike Laroche, who will go over the financials in more detail. Matt Schlarb will then give a balance sheet update and provide some insights into our ability to capture growth opportunities and Rusty Gordon will cover the outlook. After that, we'll be happy to answer your questions.

談到我們第一季的業績，我將從高層審查開始，然後將電話轉給邁克·拉羅什（Mike Laroche），他將更詳細地介紹財務狀況。然後，馬特·施拉布 (Matt Schlarb) 將更新資產負債表，並就我們抓住成長機會的能力提供一些見解，魯斯蒂·戈登 (Rusty Gordon) 將介紹前景。之後，我們將很樂意回答您的問題。

We'll begin on slide 3 with our first quarter results. Overall, our associates are doing an excellent job in controlling the things that we can in a mixed and uncertain economic environment. This includes continuing to execute our MAP 2025 initiatives and capturing growth opportunities where they exist. These self-help actions enabled us to achieve our 11th consecutive quarter of record adjusted EBIT.

我們將從投影片 3 開始介紹第一季的業績。總體而言，在複雜且不確定的經濟環境中，我們的員工在控制我們所能控制的事情方面做得非常出色。這包括繼續執行我們的 MAP 2025 計劃並抓住存在的成長機會。這些自助行動使我們連續 11 個季度實現調整後息稅前利潤創紀錄。

Across RPM, our associates are adapting to challenging economic conditions to continue to drive growth. This includes pivoting to growing end markets, finding new efficiencies in our operations, and investing in targeted growth initiatives. The cash flow momentum we built in fiscal '24 was sustained in the first quarter where we leveraged our MAP 2025 to continue making structural improvements to working capital efficiency. This resulted in another quarter of strong cash flow generation, which enabled us to repay an additional $75 million in debt. Over the prior 12 months, we have repaid $453 million in debt, and the resulting lower interest expense combined with adjusted EBIT growth led to adjusted EPS increasing 12.2% to a record $1.84.

在 RPM 中，我們的員工正在適應充滿挑戰的經濟條件，以繼續推動成長。這包括轉向不斷增長的終端市場、尋找新的營運效率以及投資於有針對性的成長計劃。我們在 24 財年建立的現金流量動能在第一季得以維持，我們利用 MAP 2025 持續對營運資本效率進行結構性改善。這導致另一個季度產生強勁的現金流，使我們能夠額外償還 7,500 萬美元的債務。在過去12 個月中，我們償還了4.53 億美元的債務，由此產生的利息支出降低，加上調整後的息稅前利潤增長，導致調整後每股收益增長12.2%，達到創紀錄的1.84美元。

Moving to slide 4, our construction products and performance coatings group led growth by focusing on the repair and maintenance businesses as well as growing in new construction markets. Aided by our entrepreneurial sales culture and broad portfolio of differentiated products and services for high-performance buildings, our teams have demonstrated their ability to capture growth opportunities where they exist.

轉向幻燈片 4，我們的建築產品和高性能塗料集團透過專注於維修和保養業務以及新建築市場的成長引領了成長。借助我們的創業銷售文化以及針對高性能建築的廣泛差異化產品和服務組合，我們的團隊已經證明了他們抓住現有成長機會的能力。

Over the past several years, we have pivoted from distribution centers to EV manufacturing and battery plants to the now strong infrastructure and data center markets. Despite the current no-growth environment, both of these segments generated record EBIT margins, which demonstrates the impact of our MAP 2025 initiatives and how they can have tremendous impact with growing volume to fully leverage these operational improvements that we put in place and that are continuing.

在過去的幾年裡，我們已經從配送中心轉向電動車製造和電池廠，再到現在強大的基礎設施和資料中心市場。儘管當前環境沒有成長，但這兩個細分市場都產生了創紀錄的息稅前利潤率，這證明了我們的MAP 2025 計劃的影響，以及它們如何透過不斷增長的銷量產生巨大影響，以充分利用我們實施的這些營運改善繼續。

In our consumer and specialty products group, which have the most exposure to residential end markets, demand remains challenged. Importantly, they remain focused on executing our MAP 2025 initiatives and were thus able to expand adjusted EBIT margins despite unabsorption headwinds from lower volumes. Our adjusted EBIT margin expansion matched our gross profit expansion and was aided by the SG&A streamlining actions we implemented at the end of fiscal 2024 such that our actual dollars of SG&A spend in this quarter were below the SG&A dollars in the prior year first quarter. Overall, I'm pleased with our associates' ability to navigate the mixed economic environment and achieved our 11th consecutive quarter of record adjusted EBIT. Through investments in our business and increased collaboration, we are working to generate volume growth and realize the full benefits of our MAP 2025 initiatives.

我們的消費品和特種產品集團在住宅終端市場中佔有最大份額，但需求仍面臨挑戰。重要的是，他們仍然專注於執行我們的 MAP 2025 計劃，因此能夠擴大調整後的息稅前利潤率，儘管銷售下降帶來了無法吸收的阻力。我們調整後的息稅前利潤率擴張與毛利擴張相匹配，並得益於我們在 2024 財年末實施的 SG&A 精簡行動，因此我們本季度的實際 SG&A 支出低於去年第一季的 SG&A 美元。總體而言，我對我們的員工應對複雜經濟環境的能力感到滿意，並實現了我們連續 11 個季度創紀錄的調整後息稅前利潤。透過對業務的投資和加強合作，我們正在努力實現銷售成長並實現 MAP 2025 計畫的全部優勢。

I'll now turn the call over to Mike Laroche to cover the financials in more detail.

我現在將把電話轉給邁克·拉羅什 (Mike Laroche)，以更詳細地介紹財務狀況。

Thanks, Frank. Turning to our consolidated results on slide 5. Sales declined 2.1%, driven by FX headwinds and a slight decline in organic revenue. Pricing was slightly positive during the quarter. Adjusted EBIT grew 6.3% to a first quarter record, driven by MAP 2025 benefits, including commodity cycle benefits and progress on plant consolidations. SG&A declined, aided by the streamlining actions we implemented at the end of fiscal 2024. Adjusted EPS increased 12.2% to $1.84, which was a record, driven by the adjusted EBIT growth and lower interest expense due to debt repayments over the past year.

謝謝，弗蘭克。轉向幻燈片 5 上的綜合結果。受外匯不利因素和有機收入小幅下降的推動，銷售額下降 2.1%。本季定價略有上漲。受 MAP 2025 效益（包括商品週期效益和工廠整合進展）的推動，調整後息稅前利潤增長 6.3%，創第一季紀錄。由於我們在 2024 財政年度結束時實施的精簡行動，SG&A 有所下降。調整後每股收益成長 12.2%，達到 1.84 美元，創歷史新高，原因是調整後息稅前利潤成長以及過去一年債務償還導致的利息支出下降。

Moving to geographic results on slide 6. Sales declined in North America where business trends generally mirror the overall company. In Europe, FX headwinds and previously announced divestitures resulted in a sales decline, but we continue making progress with MAP 2025 in the region and generated profitability growth. In emerging markets, FX headwinds were particularly pronounced in Latin America and drove the sales decline there. Asia Pacific and Africa, Middle East grew as they benefited from spending on infrastructure and high-performance building projects.

前往投影片 6 上的地理結果。北美地區的銷售額有所下降，該地區的業務趨勢通常反映了整個公司的情況。在歐洲，外匯逆風和先前宣布的資產剝離導致銷售額下降，但我們在該地區的 MAP 2025 方面繼續取得進展，並實現了盈利增長。在新興市場，外匯不利因素在拉丁美洲尤其明顯，導致該地區的銷售額下降。亞太地區和非洲、中東地區的成長得益於基礎設施和高性能建築項目的支出。

Next, moving to the segment results and starting with the construction products group on slide 7. The segment's growth was driven by turnkey roofing systems and wall systems, which are being used in both new construction projects and renovations. This growth is in addition to double-digit growth CPG generated last year. CPG achieved record Q1 adjusted EBIT due to improved fixed cost leverage from higher volumes, MAP 2025 benefits and a focus on selling higher-margin products.

接下來，前往細分結果，從投影片 7 上的建築產品組開始。該部門的成長是由交鑰匙屋頂系統和牆壁系統推動的，這些系統用於新建項目和翻修項目。這一增長還不包括去年消費消費品的兩位數增長。由於銷量增加、MAP 2025 效益以及專注於銷售高利潤產品而提高了固定成本槓桿，CPG 實現了創紀錄的第一季度調整後息稅前利潤。

On Slide 8, performance coatings group had a positive organic growth driven by the flooring business. Emerging markets also contributed to organic growth, which was in addition to strong growth in the prior year. This was more than offset by FX headwinds and the previously announced European infrastructure service business divestiture in the prior year. Adjusted EBIT was a first quarter record and was driven by MAP 2025 benefits and improved fixed cost leverage from higher volumes.

在幻燈片 8 上，高性能塗料集團在地板業務的推動下實現了積極的有機成長。除了去年的強勁成長之外，新興市場也為有機成長做出了貢獻。這被外匯逆風和去年宣布的歐洲基礎設施服務業務剝離所抵消。調整後息稅前利潤創下第一季紀錄，主要受到 MAP 2025 效益以及產量增加帶來的固定成本槓桿改善的推動。

Moving to slide 9. Specialty products group sales declined as demand in specialty OEM markets with housing exposure remain soft. Additionally, customers in the disaster restoration business entered the hurricane season with high inventories, which muted the impact of storm-related flooding during the quarter. The food group grew during the first quarter, aided by new business wins and a small acquisition. Adjusted EBIT grew during the quarter as MAP 2025 benefits more than offset the underabsorption from lower volumes.

轉到投影片 9。由於房屋敞口的特種 OEM 市場需求依然疲軟，特種產品集團銷售額下降。此外，災難復原業務的客戶在進入颶風季節時庫存較高，這減輕了本季風暴相關洪水的影響。由於新業務和小型收購，該食品集團在第一季實現了成長。本季調整後息稅前利潤有所增長，因為 MAP 2025 的收益足以抵消銷售下降造成的吸收不足。

On slide 10, the consumer group continued to face changing market conditions as DIY demand at retail stores remained weak and those retailers reduced inventory levels. The rationalization of lower-margin products also contributed to the sales declines. International markets grew during the quarter, primarily driven by targeted marketing initiatives directed toward end users that allowed us to outpace the broader market. Although adjusted EBIT declined due to lower sales and unfavorable fixed cost absorption, MAP 2025 initiatives and the rationalization of lower-margin products resulted in adjusted EBIT margin expansion during the quarter.

在投影片 10 中，消費群體繼續面臨不斷變化的市場狀況，因為零售店的 DIY 需求仍然疲弱，而且這些零售商降低了庫存水準。低利潤產品的合理化也導致了銷售量的下降。國際市場在本季度實現成長，主要是受到針對最終用戶的有針對性的行銷舉措的推動，這使我們能夠超越更廣泛的市場。儘管由於銷售額下降和固定成本吸收不利而導致調整後息稅前利潤下降，但 MAP 2025 計劃和低利潤產品的合理化導致本季度調整後息稅前利潤率擴張。

Now I'll turn the call over to Matt Schlarb, who will cover the balance sheet, cash flow and provide an update on innovation.

現在我將把電話轉給馬特·施拉布（Matt Schlarb），他將負責資產負債表、現金流並提供創新的最新情況。

Thank you, Mike. Moving to slide 11. Cash flow from operations totaled $248 million for the first quarter as operating working capital as a percentage of sales improved by 250 basis points from the prior year period, driven by MAP 2025 structural improvements in working capital. Over the past two years, this metric has improved by 540 basis points. During the quarter, we used a portion of this cash flow generation to repay debt, which declined by $75 million in the quarter and $453 million over the past year. We returned $76 million to shareholders through dividends and share repurchases during the quarter. Additionally, we are making investments in a new production facility in Belgium that is expected to open by the end of the calendar year. This facility will be overseen by specialty products group but will supply resins to all four segments as well as external parties. The new Belgian facility represents the fourth RPM plant that is focused on intercompany sales, which are a key element of our procurement strategy to enhance resiliency in our supply chain. Earlier, Frank talked about how our businesses are pivoting to growing end markets, and I'd like to highlight one example on slide 12. Spending on data center construction is up significantly over the past year, and our businesses are playing an important role in the construction of these high-performance buildings. Our products and services meet the demanding requirements of these facilities, including having a waterproof structure, meeting fire safety standards, protecting the expensive equipment from electric discharges, and allowing their facilities to continue operating through ongoing maintenance and repairs. Additionally, benefits from our suite of products and services include labor needs and faster -- reducing labor needs and faster construction. These are important not just in the data center construction but throughout the entire construction industry that is struggling with skilled labor availability. Combined with our entrepreneurial sales culture, these high-performance products, systems and services have allowed us to capture these growth opportunities and will allow us to pivot towards expanding markets in the future.

謝謝你，麥克。轉到投影片 11。第一季營運現金流量總額為 2.48 億美元，在 MAP 2025 營運資本結構性改善的推動下，營運營運資本佔銷售額的百分比比去年同期提高了 250 個基點。過去兩年，這項指標提高了 540 個基點。在本季度，我們使用現金流產生的一部分來償還債務，本季債務減少了 7,500 萬美元，去年減少了 4.53 億美元。本季我們透過股利和股票回購向股東返還 7,600 萬美元。此外，我們正在比利時投資一個新的生產設施，預計今年年底開幕。該工廠將由特種產品小組監督，但將為所有四個部門以及外部各方供應樹脂。新的比利時工廠是第四家 RPM 工廠，專注於公司間銷售，這是我們增強供應鏈彈性的採購策略的關鍵要素。早些時候，弗蘭克談到了我們的業務如何轉向不斷增長的終端市場，我想強調幻燈片 12 中的一個例子。過去一年，資料中心建設支出大幅增加，我們的業務在這些高性能建築的建設中發揮重要作用。我們的產品和服務符合這些設施的嚴格要求，包括防水結構、滿足消防安全標準、保護昂貴的設備免受放電，以及允許其設施透過持續的維護和維修繼續運作。此外，我們的產品和服務套件帶來的好處包括勞動力需求和更快的減少勞動力需求和更快的施工。這些不僅在資料中心建設中很重要，而且在整個建築業都在努力解決熟練勞動力的問題。結合我們的創業銷售文化，這些高性能產品、系統和服務使我們能夠抓住這些成長機會，並使我們能夠在未來轉向擴大市場。

Now I'd like to turn the call over to Rusty Gordon to cover the outlook.

現在我想將電話轉給拉斯蒂·戈登 (Rusty Gordon)，以介紹前景。

Thanks, Matt. Our second quarter outlook is on the next page, slide 13. On a consolidated level, second quarter sales are expected to be approximately flat compared to a record prior year period, with the mixed economic backdrop continuing. Uncertainties surrounding the US elections may cause some customers to defer decisions on spending, and the impact of recent strikes at East Coast ports remains unknown.

謝謝，馬特。我們的第二季展望請見下一頁幻燈片 13。綜合來看，在複雜的經濟背景下，第二季的銷售額預計將與去年同期的創紀錄水平大致持平。美國大選的不確定性可能會導致一些客戶推遲支出決定，而最近東海岸港口罷工的影響仍然未知。

By segment, CPG is expected to generate low single-digit revenue growth in addition to record results in the prior year period when revenue grew 8%. Growth is expected to be driven by high-performance roofing and wall systems serving restoration and new construction projects. In PCG, sales are expected to be approximately flat, which includes the positive impact of more effective sales management systems. In SPG, overall demand is expected to decline by low single digits as residential-focused OEM demand remains soft while other OEM businesses show signs of stabilization. In consumer group, sales are expected to be down low single digits. Continued DIY softness is expected to be partially offset by market share gains and growth in international markets. Rationalization of lower-margin products will be a headwind to sales but a benefit to margins. Consolidated second quarter adjusted EBIT is expected to increase in the mid-single-digit percentage range compared to a record prior year period, driven by MAP 2025 benefits and improved fixed cost utilization at some of our businesses. Our fiscal 2025 full year guidance is on the following slide. Our view on the overall economic environment remains similar, and our guidance is unchanged to what we previously communicated, with sales up low single digits and adjusted EBIT increasing in the mid-single digits to low double-digit range. We expect overall pricing to be slightly positive in response to continued inflation in areas like labor and benefits, and we expect moderate increases in raw material costs in the second half of the fiscal year. Thanks to the progress we have made in our center-led procurement teams and CS-168, we are better positioned to have our pricing reflect increases in raw material costs in a timely manner. By segment, CPG should outpace its markets with its differentiated product and service offerings and should continue to benefit from spending on infrastructure, high-performance building and restoration projects while office construction remains sluggish. At PCG, they continue to benefit from increased spending on infrastructure projects, high-performance buildings, and emerging market growth. We continue to expect spending on reshoring projects to moderate in some areas like battery plants and expand in others like data centers and pharmaceutical manufacturing.

按細分市場劃分，CPG 預計除了去年同期營收成長 8% 的創紀錄業績外，還將實現較低的個位數收入成長。預計成長將由服務於修復和新建項目的高性能屋頂和牆壁系統推動。PCG 的銷售額預計將大致持平，其中包括更有效的銷售管理系統的正面影響。在 SPG 領域，由於以住宅為中心的 OEM 需求仍然疲軟，而其他 OEM 業務顯示出穩定的跡象，預計整體需求將出現低個位數下降。在消費群中，銷售額預計將下降低個位數。DIY 的持續疲軟預計將被市場份額的成長和國際市場的成長所部分抵消。低利潤產品的合理化將阻礙銷售，但有利於利潤。受 MAP 2025 效益和我們一些業務固定成本利用率提高的推動，第二季度調整後綜合息稅前利潤預計將比去年同期創紀錄的中個位數百分比增長。我們的 2025 財年全年指引如下投影片所示。我們對整體經濟環境的看法仍然相似，我們的指導與我們之前傳達的內容沒有變化，銷售額增長較低個位數，調整後息稅前利潤增長在中個位數到低兩位數範圍內。我們預計，由於勞動力和福利等領域的持續通膨，整體定價將略為積極，我們預計本財年下半年原物料成本將溫和上漲。由於我們中心領導的採購團隊和 CS-168 所取得的進展，我們能夠更好地讓我們的定價及時反映原材料成本的成長。按細分市場來看，CPG 應該憑藉其差異化的產品和服務超越市場，並且應該繼續受益於基礎設施、高性能建築和修復項目的支出，而辦公室建設仍然低迷。在 PCG，他們繼續受益於基礎設施項目、高性能建築和新興市場成長支出的增加。我們仍然預計，電池廠等某些領域的回流項目支出將放緩，而資料中心和製藥製造等其他領域的支出將擴大。

At consumer and SPG, which are most closely tied to residential housing, we are encouraged to see interest rates declining, but it is too early to determine when this will translate into an increase in housing turnover. In the interim, we remain focused on operating improvements, so we are prepared to respond to a market rebound when it materializes. On a consolidated level, adjusted EBIT growth is expected to be driven by MAP 2025 benefits, with the timing and magnitude determined by how quickly and to what extent volume growth returns. We also anticipate that we will continue to improve our working capital efficiency, which will lead to another year of strong cash flow. This concludes our prepared remarks.

在與住宅住房關係最密切的消費者和 SPG 領域，我們很高興看到利率下降，但現在確定何時會轉化為房屋成交量的增加還為時過早。在此期間，我們仍然專注於營運改進，因此我們準備在市場反彈實現時做出反應。在綜合層面上，調整後的息稅前利潤成長預計將由 MAP 2025 效益推動，其時間和幅度取決於銷售成長恢復的速度和程度。我們也預計，我們將繼續提高營運資金效率，這將帶來另一年強勁的現金流。我們準備好的演講到此結束。

We are now pleased to answer your questions.

我們現在很高興回答您的問題。

(Operator Instructions) John McNulty, BMO Capital Markets.

（操作員說明）John McNulty，BMO 資本市場。

Good morning, John.

早安，約翰。

Hey good morning, Frank. Thanks for taking my question and congrats on nice quarter in a difficult environment. And I guess to that, so the consumer margins are putting up some pretty solid numbers. I mean, I think it was 18.5% this quarter, which is nearly a record for the first quarter, and that's despite some really challenging volumes. So I guess, can you help us to think about the operating leverage in this business now that MAP is really kind of working its way through, and how we can think about kind of what the margin profile would look like for the business in a more normalized DIY type environment?

嘿早安，弗蘭克。感謝您提出我的問題，並祝賀您在困難的環境中度過了美好的季度。我想，因此消費者利潤正在提供一些相當可靠的數字。我的意思是，我認為本季的成長率為 18.5%，這幾乎是第一季的記錄，儘管銷量確實存在一些挑戰。所以我想，既然 MAP 確實正在發揮作用，您能否幫助我們考慮一下該業務的營運槓桿，以及我們如何考慮該業務在更廣泛的情況下的利潤狀況會是什麼樣子？

Sure. I'll comment to your question about consumer, but it really applies to all of our businesses. We have executed really well on our MAP to growth and our MAP 2025 follow-on operating improvement initiatives. We've gained efficiencies in our conversion costs, particularly true in consumer and at Rust-Oleum. And I've commented in the past, without additional dollars of capital, we have uncovered almost 80 million units of new capacity.

當然。我將對您有關消費者的問題發表評論，但這確實適用於我們所有的業務。我們在 MAP to Growth 和 MAP 2025 後續營運改善計畫方面執行得非常好。我們提高了轉換成本的效率，尤其是在消費者和 Rust-Oleum 方面。我過去曾評論過，在沒有額外資金的情況下，我們已經發現了近 8000 萬單位的新產能。

And that gives you a sense of the benefits that our operating improvement initiatives have uncovered. That doesn't do us much good unless we can sell it, and so we are really poised to lever growth to the bottom line. You can see that with a nice leverage in the construction products group and the performance coatings group, both of whom had positive unit volume growth in the quarter. And I think as you're referencing, you can see the operating leverage, and even in our consumer segment, when volumes will come back, which they will.

這讓您感受到我們的營運改善計畫所帶來的好處。除非我們能出售它，否則這對我們沒有多大好處，因此我們確實準備好利用成長槓桿來實現盈利。您可以看到，建築產品集團和高性能塗料集團擁有良好的槓桿作用，這兩個集團在本季的單位銷售量都實現了正成長。我認為正如你所提到的，你可以看到營運槓桿，甚至在我們的消費領域，當銷售會回來時，他們會的。

The last comment I'll make is across every segment of RPM, we have been very deliberate in focused SG&A spends on new product areas and on growth areas, as Rusty commented. We are moving our sales forces to the few pockets of where growth exists. But in each of our segments in Q1, our dollar spend in SG&A was below last year, so we are taking a pretty targeted and disciplined approach to SG&A, and you'll see that continue in Q2.

我要發表的最後一條評論涉及 RPM 的每個部分，正如 Rusty 評論的那樣，我們非常謹慎地將 SG&A 支出集中在新產品領域和成長領域。我們正在將銷售隊伍轉移到少數有成長的地方。但在第一季我們的每個細分市場中，我們在銷售及管理費用上的美元支出低於去年，因此我們對銷售及管理費用採取了非常有針對性和嚴格的方法，你會看到第二季繼續如此。

Got it. Okay. No, that's helpful. And then I guess just the second question would just be on the Specialty segment. I think you mentioned in the release that there were some inventory issues around the Legends business.

知道了。好的。不，這很有幫助。然後我想第二個問題只是關於專業部分。我想您在新聞稿中提到傳奇業務存在一些庫存問題。

I guess, how long do you expect it to take to kind of work through that? And should we see an uptick, just given some of the issues that we're seeing in the US now around some of the hurricane problems?

我想，您預計需要多長時間才能完成這項工作？考慮到我們現在在美國看到的一些颶風問題，我們是否應該看到上升的趨勢？

For the first time in probably four or five quarters, you're seeing positive EBIT growth in our specialty segment. And it feels very much to me like their challenged environment has bottomed out. They are particularly exposed to residential new construction, indirectly with their wood finishes work that goes into doors and windows into manufactured housing. And so it was really, I think, good and comforting to see them to return to positive EBIT margin generation. And I think the sales challenges that they faced for the last, boy, four or six quarters have bottomed out. And you will see improved -- modest improved performance in the specialty products segment as we go throughout the rest of the year.

可能是四、五個季度以來您第一次看到我們專業領域的息稅前利潤正成長。我感覺他們充滿挑戰的環境已經觸底。他們特別接觸住宅新建工程，間接接觸到門窗和預製房屋的木飾面工作。因此，我認為，看到他們恢復正息稅前利潤率，真是一件好事和令人欣慰的事情。我認為他們過去四、六個季度面臨的銷售挑戰已經觸底。隨著今年剩下的時間，你會看到特種產品領域的表現有所改善——小幅改善。

Okay. Thanks very much for the color.

好的。非常感謝你的顏色。

Thank you.

謝謝。

Frank Mitsch, Fermium Research.

弗蘭克米奇，費米研究中心。

Morning, Frank.

早安，弗蘭克。

Hey, good morning to you as well and good luck in the playoffs. Obviously, I'm talking baseball, not football, sorry. You indicated, I think, in the last conference call that there was an expectation that maybe price would be up 1% in fiscal 2025. I believe Rusty said that the expectation is slightly positive. So I'm curious if that's kind of a good placeholder.

嘿，也祝你早安，祝季後賽好運。顯然，我說的是棒球，不是足球，抱歉。我認為，您在上次電話會議中表示，預計 2025 財年價格可能會上漲 1%。我相信 Rusty 所說的期望是稍微正面的。所以我很好奇這是否是一個好的佔位符。

I think you indicated that you're going to offset raw materials. And given the wide range on EBIT for the balance of this year, what would be a reasonable range of volume expectations that you have as you sit here today for fiscal 2025?

我認為你表示你將抵銷原料。考慮到今年剩餘時間的息稅前利潤的廣泛範圍，您今天坐在這裡對 2025 財年的合理銷售預期範圍是多少？

Sure. On price, we benefited by about 0.5% in the quarter. We are facing some modest raw material increases in propellants, certain solvents and resins. And so I think the number that Rusty cited still feels good for the balance of the year of about 1% price. That presumes we don't see any dramatic impacts in higher raw material costs, which at this point seems to be pretty stable.

當然。在價格方面，本季我們受益約 0.5%。我們面臨推進劑、某些溶劑和樹脂等原料的小幅成長。因此，我認為 Rusty 引用的數字對於今年剩餘時間約 1% 的價格仍然感覺良好。假設我們沒有看到原材料成本上漲產生任何巨大影響，目前原材料成本似乎相當穩定。

In terms of growth, it's anybody's guess. But I would tell you that if we are starting on a path of interest rate decreases, that will be the period of time in which you're going to see a recovery in housing turnover, which remains at a 30-year low. Big driver of our consumer segment takeaway and also new home construction and turnover for specialty products group. It does not take a lot of positive volume growth to leverage nicely to our bottom line. So for instance, even in the second quarter, our outlook is flat. If things perk up here a little bit and we can provide a 1% or 2% positive growth, you'll see that leverage nicely and better than our guidance to the bottom line. That's speculative. But we don't need 4% or 5% growth to leverage really strong performance in the bottom line. We just need positive results and you see that in our two more industrial segments in this quarter.

就成長而言，這是任何人的猜測。但我想告訴你，如果我們開始走上利率下降的道路，那麼在這段時間內你將看到房屋成交量的復甦，而房屋成交量仍處於 30 年來的最低水平。我們的消費群體外賣以及新房屋建設和特色產品集團營業額的重要動力。不需要大量的正銷量成長就能很好地提高我們的利潤。例如，即使在第二季度，我們的前景也持平。如果情況稍微好一點，我們可以提供 1% 或 2% 的正成長，您會發現這種槓桿作用很好，而且比我們對利潤的指導更好。這是推測性的。但我們不需要 4% 或 5% 的成長來利用真正強勁的獲利表現。我們只需要積極的成果，您會在本季度的另外兩個工業領域看到這一點。

Understood and very helpful. Just curious, on the topic of the benefits of the rate cuts and the timing. What sort of indications are you getting from your customer base, particularly on the consumer side in terms of their expectations as to when we might see the benefits take place, 6 months, 9 months, 12 months, 15? Any sort of indications from your customer base on what their expectations are?

理解並且非常有幫助。只是好奇，關於降息的好處和時機的話題。您從客戶群（尤其是消費者方面）得到了什麼樣的指示，以了解他們對我們何時可以看到好處（6 個月、9 個月、12 個月、15 個月）的期望？您的客戶群有什麼跡象表明他們的期望是什麼？

Not really. I will tell you the inventories are at exceedingly low levels, and so that's an area that -- where we'll see a rebound in growth, I think will also help us kick start at least temporarily filling inventories in some cases to more normal levels. But Rusty Gordon did a very nice job for our Board in the past year, 1.5 year of actually mapping what was extraordinarily solid organic growth.

並不真地。我會告訴你，庫存處於極低水平，因此，在這個領域，我們將看到成長反彈，我認為這也將幫助我們在某些​​情況下至少暫時將庫存填充到更正常的水平。但 Rusty Gordon 在過去的一年裡為我們的董事會做了非常出色的工作，花了 1.5 年的時間實際描繪了異常穩健的有機增長。

My recollection is in the fall of '23 and tracking our unit volume growth by segment and SBU to the Fed rate hikes, interest rate increases. And it took about two or three quarters of the Fed increasing interest rates until we saw the negative impact, which was their intent, particularly in housing and again, affecting specialty and consumer. And then it went negative. And we've had those challenges for the last three or four quarters.

我的記憶是在 23 年秋天，按部門和 SBU 追蹤我們的單位銷售成長，直至聯準會升息、升息。聯準會花了大約兩到三個季度的時間才升息，直到我們看到了負面影響，這就是他們的意圖，特別是在住房領域，並再次影響專業和消費者。然後它變成了負數。過去三、四個季度我們一直面臨這些挑戰。

So with that, I would tell you it probably is going to take a couple of quarters of interest rate reductions before the benefits of those start flowing into the economy and our business. So I would guess the spring of this year. And if it starts to hit, there is not much in the way of meaningful volume improvement in our current guidance.

因此，我想告訴你，可能需要幾個季度的降息才能讓這些好處開始流入經濟和我們的業務。所以我猜今年春天。如果它開始受到衝擊，那麼在我們當前的指導中，沒有太多有意義的銷售改善方式。

Okay. Very helpful. Thank you.

好的。非常有幫助。謝謝。

Kevin McCarthy, Vertical Research Partners.

凱文·麥卡錫，垂直研究夥伴。

Good morning, Kevin.

早安，凱文。

Good morning, Frank. Would welcome your updated thoughts on capital deployment. I guess looking in the rearview, it seems as though you did a small deal in specialty products. But more importantly, just thinking about the deleveraging that you've done, and by my math, you're down about 1.4 times EBITDA in terms of the net debt balance. So what are you seeing in the private market? And how would you weigh that versus potential to accelerate repurchases or alternative uses of cash?

早安，弗蘭克。歡迎您對資本部署的最新想法。我想從後視來看，好像你們在特色產品上做了一筆小生意。但更重要的是，只要考慮一下您所做的去槓桿化，根據我的計算，就淨債務餘額而言，您的 EBITDA 下降了約 1.4 倍。那麼您在私募市場上看到了什麼？您如何權衡這一點與加速回購或現金替代用途的潛力？

Sure. We are committed to the capital allocation model that has been the hallmark of RPM, investing in internal growth, investing in acquisitions, raising our dividend. We have our annual meeting of stockholders tomorrow, and our Board will consider what would likely be our 51st consecutive increase in cash dividends. And we are committed on a regular basis now regardless of stock price to about $50 million a year, maybe a little bit more of share repurchases. And beyond that, I think we'll be opportunistic. But our ability to repurchase shares on a more regular and more consistent and larger basis exists in ways it didn't. Our balance sheet is in the best shape that it's ever been in, in my 35-year career at RPM, and so that feels pretty good.

當然。我們致力於資本配置模式，這一直是 RPM 的標誌，投資於內部成長、投資收購、提高股息。我們明天將召開年度股東大會，董事會將考慮我們可能連續第 51 次增加現金股利。現在，無論股價如何，我們都會定期承諾每年約 5,000 萬美元，也許會多一點股票回購。除此之外，我認為我們將是機會主義的。但我們以更定期、更一致、更大規模的方式回購股票的能力卻以前所未有的方式存在。我們的資產負債表處於我 35 年 RPM 職業生涯中最好的狀態，所以感覺非常好。

Specific to acquisitions, we are pursuing a lot of small product lines because we can get them done. The M&A market chilled through the kind of supply chain hiccups and the interest rate rises. It's starting to loosen up a little bit. And we will continue to pursue the small- to medium-sized acquisition strategy that's been so successful for us in the past. And our ability to leverage product lines or businesses because of our MAP initiatives are better today than they've ever been.

具體到收購，我們正在追求很多小型產品線，因為我們可以完成它們。供應鏈問題和利率上升導致併購市場降溫。它開始放鬆一點。我們將繼續推行過去對我們來說非常成功的中小型收購策略。由於我們的 MAP 計劃，我們現在利用產品線或業務的能力比以往任何時候都更好。

Very helpful. And then second, if I may, Frank. Could you provide an update on your MAP program execution? Just kind of walk through where we are today in terms of asset consolidation, headcount, other cost savings. What's behind the company and what's still ahead in coming quarters?

非常有幫助。第二，如果可以的話，弗蘭克。您能否提供 MAP 程式執行的最新情況？簡單介紹一下我們今天在資產整合、員工人數和其他成本節約方面的情況。公司的背後是什麼以及未來幾季的前景是什麼？

Sure. Great question. I would say we're in the fourth or fifth inning of our MAP programs that started in the fall of 2018. Our MS-168 approach, which is really a center-led operating efficiency and continuous improvement approach to our manufacturing and operations, has really done quite well. And we are taking that now to Europe.

當然。很好的問題。我想說，我們正處於 2018 年秋季啟動的 MAP 計劃的第四或第五局。我們的 MS-168 方法實際上是一種以中心為主導的生產和營運效率和持續改進方法，效果確實相當好。我們現在正將其帶到歐洲。

Dave Dennsteadt, who runs our performance coatings group, and his family moved to Europe 1.5 year ago, really accelerating the MAP initiatives there that got stalled a little bit because of COVID. But we are on target for the original $465 million of projected MAP 2025 savings. That would imply $185 million of MAP benefits on a full run rate basis by May 31, 2025 for this fiscal year. And I think it's highly likely that we will meet or beat that $465 million total program goal.

Dave Dennsteadt 是我們高性能塗料集團的負責人，他和家人於 1.5 年前搬到了歐洲，確實加速了那裡的 MAP 計劃，該計劃因新冠肺炎疫情而一度陷入停滯。但我們已經實現了 MAP 2025 最初預計節省 4.65 億美元的目標。這意味著到 2025 年 5 月 31 日，本財政年度按全額運行費率計算的 MAP 收益將達到 1.85 億美元。我認為我們很有可能達到或超過 4.65 億美元的總計劃目標。

The challenge for us in our MAP initiative, and it's not unique to us, is growth. When you look at this quarter, I think that the 42% gross profit goal and the 16% EBIT margin goal on a consolidated basis are within reach, and that is without the benefit of the $8.5 billion total revenues that we had targeted. We're going to fall short of that in all likelihood. And so it really gives you the sense of the strong execution we've had. Have we come anywhere close to the $8.5 billion in revenues, we blow through those margin targets.

我們 MAP 計劃面臨的挑戰是成長，這並不是我們獨有的。當你看看本季時，我認為綜合基礎上 42% 的毛利目標和 16% 的息稅前利潤目標是可以實現的，而且這還不包括我們設定的 85 億美元總收入目標。我們很可能會達不到這一點。因此，它確實讓您感受到我們擁有強大的執行力。如果我們的營收接近 85 億美元，我們就會超越這些利潤目標。

Thank you so much. Very helpful.

太感謝了。非常有幫助。

David Huang, Deutsche Bank.

黃大衛，德意志銀行。

Good morning.

早安.

Good morning. In consumer, I guess, volume was worse than expected in August since you gave guidance in late July. And I think you talked about continued consumer -- I mean, customer destocking despite low inventory levels. Can you just talk about what has happened there? And I guess, how is that trend in September versus August?

早安.我猜想，自從您在 7 月下旬給出指導以來，8 月份的消費者銷量低於預期。我認為您談到了持續的消費者——我的意思是，儘管庫存水平較低，但客戶仍在減少庫存。您能簡單談談那裡發生的事情嗎？我想，九月與八月的趨勢如何？

Sure. So the performance in consumer was as expected. It was a combination of lower inventory levels, particularly at some of our big-box retailers and a continuing low to mid-single-digit consumer negative takeaway versus prior years. We see that bottoming out this fall in terms of consumer takeaway. And as I indicated in response to an earlier question, I think inventory levels across most of our customers are at a point where if there is -- and when there is, because there will be at some point, a pickup in consumer takeaway and positive volume, you'll also see some adjustments in inventory to meet that demand.

當然。因此消費者的表現符合預期。這是庫存水準較低（尤其是我們的一些大型零售商）以及與前幾年相比持續低至中個位數的消費者負面外賣的綜合結果。我們看到消費者外賣在今年秋天觸底。正如我在回答之前的問題時指出的那樣，我認為我們大多數客戶的庫存水平都處於這樣一個點：如果有的話——而且當有的話，因為在某個時候，消費者外賣會有所增加，並且積極量，您還會看到庫存進行一些調整以滿足該需求。

So we are where we expected to be. It's disappointing. We are in our 15th month of negative consumer takeaway. I've been at RPM 35 years and have never seen this period of kind of flat to negative results in our consumer segment. It's not unique to us. And I think when you compare it to the most directly comparable segments of some of our major peers, our consumer performance collectively is equal to or better than what we're seeing elsewhere. So we're managing it well and I think we're well positioned on the upturn.

所以我們達到了我們預期的水平。真令人失望。消費者流失已進入第 15 個月。我在 RPM 工作了 35 年，從未見過我們的消費領域出現過這種從平淡到負面的結果。這並不是我們所獨有的。我認為，當你將其與我們一些主要同業最直接可比較的細分市場進行比較時，我們的消費者表現總體上等於或優於我們在其他地方看到的表現。所以我們管理得很好，我認為我們在經濟好轉方面處於有利位置。

Also, as Rusty and Matt talked about, we've got some new product introductions that we're pretty excited about, both in DAP and Rust-Oleum and we're seeing some solid growth. The only place we're seeing positive growth is in our mostly European, UK consumer business with some really nice upticks as they continue to improve their operations.

此外，正如 Rusty 和 Matt 所說，我們推出了一些令我們非常興奮的新產品，包括 DAP 和 Rust-Oleum，並且我們看到了一些穩健的成長。我們唯一看到積極成長的地方是我們主要是歐洲和英國的消費者業務，隨著他們繼續改善運營，這些業務出現了一些非常好的成長。

Got it. On the positive side, you highlighted some data center opportunities on the slide. Can you maybe help us size and then think about the opportunity in your backlog and your ability to capture shares in the market?

知道了。從積極的一面來看，您在幻燈片上強調了一些資料中心的機會。您能否幫助我們衡量並考慮您的積壓訂單中的機會以及您在市場上佔領份額的能力？

Sure. I can't size the data center or any market in particular. I can tell you, in our construction products group, with panelization, with the roofing opportunities that we see, particularly with the Tremco Roofing Supply and Apply model with the challenges of labor, and in the Stonhard, Performance Coatings Group's Stonhard space and flooring, again, the supply and apply model and where that's somewhat of an advantage with some challenged labor markets. Our backlogs are better today than they were a year ago. As we had commented in the last conference call, we have seen some of these big projects be pushed out. Intel is a good example. Some of their big new construction, new fab plants where we're specified have moved out in terms of timelines by a matter of 12 or 18 months. And so we have seen some big projects deferred, but backlogs are pretty strong in our more industrial segment businesses.

當然。我無法確定資料中心或任何特定市場的規模。我可以告訴你，在我們的建築產品集團中，透過鑲板，我們看到了屋頂機會，特別是在面臨勞動力挑戰的Tremco 屋頂供應和應用模式中，以及在Stonhard、高性能塗料集團的Stonhard 空間和在地板中，再次，供應和應用模式對於一些充滿挑戰的勞動力市場來說具有一定的優勢。今天我們的積壓訂單比一年前好。正如我們在上次電話會議中所評論的那樣，我們看到其中一些大型項目被推遲。英特爾就是一個很好的例子。我們指定的一些大型新建、新晶圓廠的工期已經推遲了大約 12 或 18 個月。因此，我們看到一些大型專案被推遲，但我們的工業部門業務積壓情況相當嚴重。

Thank you.

謝謝。

Vincent Andrews, Morgan Stanley.

文森安德魯斯，摩根士丹利。

Morning, Vince.

早上好，文斯。

Morning. Thank you. Could you give a little more detail on the SKU rationalization you're doing in consumer group, both in terms of what the products are, maybe what that sort of negative weight is going to be on your volume going forward? And just how below segment average margins are those products?

早晨。謝謝。您能否更詳細地介紹一下您在消費者群體中所做的 SKU 合理化，包括產品是什麼，也許這種負權重會對您的銷售產生什麼樣的影響？這些產品的利潤率究竟低於細分市場平均多少？

Sure. We have a branded and private label architectural paint plant and business in Europe that's part of our consumer segment, and we have announced the closure of that. And that is meaningfully below our segment and our RPM average gross margin and meaningfully below our EBIT margin. And so while it will take some time and money, we anticipate that, that will be completed by mid-calendar year '25. And that will, from a margin perspective, essentially be addition by subtraction.

當然。我們在歐洲擁有一家品牌和自有品牌建築塗料工廠和業務，這是我們消費者細分市場的一部分，我們已經宣布關閉該工廠和業務。這明顯低於我們的細分市場和每分鐘轉數平均毛利率，也明顯低於我們的息稅前利潤率。因此，雖然這需要一些時間和金錢，但我們預計這將在 25 年中旬完成。從邊際角度來看，這本質上就是加減法。

We have also rationalized some small project paint product lines in the US relative to profitability and turnover. So we continue to use data better than we ever have. And our Rust-Oleum business is kind of the leader across RPM in that to take a hard look at where we're making money and where we're not and how we would manage both our mix as well as where we, more in our industrial businesses, incentivize our sales force to drive the mix that we want.

我們也根據獲利能力和營業額對美國的一些小型塗料生產線專案進行了合理化調整。因此，我們繼續比以往更好地使用數據。我們的 Rust-Oleum 業務在 RPM 方面處於領先地位，因為我們會認真審視我們在哪裡賺錢、在哪裡不賺錢，以及我們如何管理我們的組合以及我們在哪裡，更多的是工業企業，激勵我們的銷售人員推動我們想要的組合。

Okay. And then on -- you also mentioned in consumer group that you had some success with some new international marketing campaigns. Can you talk a little bit about what those are, I mean, which brands they're impacting?

好的。然後，您也在消費者小組中提到，您在一些新的國際行銷活動中取得了一些成功。您能否談談這些是什麼，我的意思是，它們正在影響哪些品牌？

Sure. So there's really two areas that are driving our growth there. One is Zinsser. We were the leader in specialty primers for a long, long time in North America. And certainly, the idea of priming paint jobs is pretty ubiquitous in the US now. Not so much so in the UK and Europe. And so we are seeing double-digit organic growth in the rollout in different markets of our Zinsser specialty primers, and that's pretty exciting to see. And it's good old education of the benefits of priming for paint jobs, and we seem to be the leader in a number of markets.

當然。因此，實際上有兩個領域正在推動我們的成長。其中之一是辛瑟。長期以來，我們一直是北美特殊底漆領域的領導者。當然，現在在美國，塗底漆的想法相當普遍。在英國和歐洲則不然。因此，我們看到 Zinsser 特種底漆在不同市場的推出實現了兩位數的有機成長，這是非常令人興奮的。這是關於塗漆底漆好處的良好古老教育，我們似乎是許多市場的領導者。

The other area is an Internet direct program in our Rust-Oleum business in the UK, where people can go online and actually buy small quantities of paint for specialty projects. And that has gone from single millions of pounds of business to teens millions of pounds of business and is growing at double-digit rates. Don't know where the top is on that, but it's been a pretty exciting growth initiative over the last three years.

另一個領域是我們在英國的 Rust-Oleum 業務的互聯網直接計劃，人們可以上網並實際購買少量用於特殊項目的油漆。這已經從數百萬英鎊的業務增加到數百萬英鎊的業務，並且正在以兩位數的速度成長。不知道最高點在哪裡，但在過去三年中，這是一項非常令人興奮的成長舉措。

Okay. Thanks so much.

好的。非常感謝。

Gansham Panjabi, Robert W. Baird.

甘薩姆‧旁遮普 (Gansham Panjabi)，羅伯特‧W‧貝爾德 (Robert W. Baird)。

Morning, Gansham.

早安，甘沙姆。

Hi, good morning. This is Matt sitting in for Ghansham. So I guess I just wanted to dig in on pricing a bit here. Have you seen any pricing pressures across the various business units due to either competitive activity, promotional activity to boost volumes or from any index-related pass-through mechanisms?

嗨，早安。這是馬特（Matt）代替甘沙姆（Ghansham）。所以我想我只是想在這裡深入探討一下定價。您是否發現各個業務部門因競爭活動、提高銷售量的促銷活動或任何與指數相關的傳遞機製而面臨定價壓力？

The comments here are pretty much what we provided in the July earnings call. We have seen some reductions in pricing on some of our products in the industrial sector and a little bit in DAP that are more related to broad chemicals, so you saw a huge spike in silicone prices and that came down. You saw a huge price in certain resins and those have come down. So in some instances, we have adjusted accordingly but have been able to maintain strong margin profitability in that. And then we have had some pricing in consumer really, and we talked about this in July as well, really related to price elasticity. In our highest-performing product line, the Universal paint, at one point, our prices got above $10 a can, and the data we had suggested that consumers weren't buying it there, so we adjusted accordingly in a couple of our big accounts. So those are principally the pricing actions that we've taken. It's been relatively modest across all of RPM. And as I said, on average in the quarter across our consolidated business, price was up about 0.5%. And we would anticipate about a 1% impact of price in the full fiscal year, in part because of some modest raw material price increases in certain categories particularly impacting consumer.

這裡的評論幾乎與我們在 7 月的財報電話會議中提供的內容差不多。我們看到工業領域的一些產品的價格有所下降，DAP 的價格也有一些下降，這些產品與廣泛的化學品更相關，所以你看到有機矽價格大幅上漲，然後又下降了。您看到某些樹脂的價格很高，但這些樹脂的價格已經下降。因此，在某些情況下，我們進行了相應的調整，但仍能夠維持強勁的利潤率。然後我們確實對消費者進行了一些定價，我們在 7 月也談到了這一點，這確實與價格彈性有關。在我們性能最高的產品線Universal油漆中，我們的價格一度超過每罐10美元，而我們的數據表明消費者不會在那裡購買它，因此我們在幾個大帳戶中進行了相應調整。這些主要是我們採取的定價行動。整個 RPM 的變化相對較小。正如我所說，本季我們合併業務的平均價格上漲了約 0.5%。我們預期整個財年價格的影響約為 1%，部分原因是某些類別的原物料價格小幅上漲，特別是對消費者的影響。

Got it. That's very helpful. And then the execution on the MAP 2025 program has been impressive in context of a pretty choppy demand backdrop. How much price, cost benefit do you have baked into that cost savings number that you mentioned earlier for this year? And then what was the price, cost impact specific to the first fiscal quarter here?

知道了。這非常有幫助。在需求相當波動的背景下，MAP 2025 計畫的執行令人印象深刻。您在今年稍早提到的成本節約數字中考慮了多少價格和成本效益？那麼第一財季的具體價格和成本影響是多少呢？

Maybe, Rusty or Matt. I'm not sure I understand the question.

也許，拉斯蒂或馬特。我不確定我是否理解這個問題。

Yes. So Matt, so with inflation, we would expect it to be pretty neutral in the second quarter, and then we would expect a little bit of inflation as we get in the back half of fiscal '25. And like Frank has talked about, we would expect pricing to be positive for both the second quarter and for the remainder of the year.

是的。馬特，就通膨而言，我們預計第二季通膨將相當中性，然後我們預計在 25 財年後半段會出現一點通膨。正如弗蘭克所說，我們預計第二季和今年剩餘時間的定價都是正面的。

Got it. So it sounds like there wasn't much of a headwind or tailwind or isn't much of a headwind or tailwind priced into the full year guide? That's helpful.

知道了。所以聽起來似乎沒有太多的逆風或順風，或者沒有太多的逆風或順風計入全年指南中？這很有幫助。

Correct. Yeah, we did have a little deflation in the first quarter for raw materials, low single-digit deflation. But like I mentioned, we expect that to be neutral in Q2.

正確的。是的，第一季原物料確實出現了一點通貨緊縮，低個位數的通貨緊縮。但正如我所提到的，我們預計第二季的情況將是中性的。

Okay that's helpful. Thanks.

好的，這很有幫助。謝謝。

John Roberts, Mizuho.

約翰·羅伯茨，瑞穗。

Thank you. Maybe I'll ask just one here. Do you think we're plateauing in reshoring and infrastructure activity? And so quarter to quarter, we're going to sort of bounce up and down but along kind of atop, given the comps here are from a pretty high level? Or do you think there's another leg of growth here to come in those two drivers?

謝謝。也許我會在這裡問一個。您認為我們的回流和基礎設施活動是否已趨於穩定？因此，每個季度，我們都會上下反彈，但會在頂部，因為這裡的比較來自相當高的水平？或者您認為這兩個驅動因素還會帶來另一股成長嗎？

Yeah, it's a great question. I don't think we're plateauing, but I think it's going to play out over a longer period of time than people anticipated. There's still a big slug of the infrastructure build dollars that are unspent. And so it will play out more slowly but it will still be positive for the next couple of years. And then from a political front, I think what massively needs to be addressed is permitting. There's been a lot of talk about that but except in a few places, the permitting process is still long and arduous for big projects. And so if there was any permitting reform in a new Congress, I think that would reaccelerate some of these onshoring initiatives, particularly as it relates to energy and batteries, and you name it in terms of manufacturing. Those are the issues as we see them as we sit here today.

是的，這是一個很好的問題。我不認為我們正處於停滯狀態，但我認為這種情況會持續比人們預期的更長的時間。仍有大量基礎建設資金未使用。因此，它的發揮會更慢，但在未來幾年仍將是積極的。然後從政治方面來看，我認為最需要解決的是授權問題。關於這一點已經有很多討論，但除了少數地方外，大型專案的許可過程仍然漫長而艱鉅。因此，如果新國會有任何允許的改革，我認為這將重新加速其中一些本土舉措，特別是與能源和電池相關的舉措，以及製造業的舉措。這些就是我們今天坐在這裡所看到的問題。

And I know I said one question, but maybe put data centers, could you just maybe rank order that among just qualitatively what the most important drivers are of the growth? So is it in the top three or top five or --?

我知道我說了一個問題，但也許把資料中心放在一起，您能否在定性上對成長最重要的驅動因素進行排序？那麼它是進入前三名還是前五名還是——？

No, I -- again, I don't have the data or numbers on that in particular. I'll tell you what's been impressive and sound self-congratulatory, but we have been able to hang on to the entrepreneurial culture of RPM in the customer-facing parts of our business. And so if you look at our Euclid Chemical Company or Tremco sealants and waterproofing, Stonhard, their ability over the last couple of years to shift from distribution centers to the growth in the cannabis industry that in terms of processing was looking at FDA-qualified facilities, to manufacturing and onshoring to data centers has been really impressive. And it's pleasantly surprised me that our sales forces is -- have been as agile as they've been because overall, particularly in our construction products group, the broad numbers on commercial construction in North America, our principal business, have not been good. But if you can go to where the growth is, you can still keep positive momentum, and I think that's a strength of RPM.

不，我再次強調，我沒有這方面的具體數據或數字。我將告訴您什麼是令人印象深刻且聽起來自我祝賀的事情，但我們已經能夠在面向客戶的業務部分中堅持 RPM 的創業文化。因此，如果你看看我們的 Euclid Chemical Company 或 Tremco 密封劑和防水材料公司 Stonhard，他們在過去幾年中從配送中心轉向大麻行業增長的能力，在加工方面正在尋找 FDA 合格的設施，到製造和外包到資料中心確實令人印象深刻。令我驚訝的是，我們的銷售團隊一直如此敏捷，因為總體而言，特別是在我們的建築產品部門，我們的主要業務北美商業建築的總體數字並不好。但如果你能走到成長的地方，你仍然可以保持積極的勢頭，我認為這就是 RPM 的優勢。

All right. Thank you.

好的。謝謝。

Mike Harrison, Seaport Research Partners.

麥克·哈里森，海港研究夥伴。

Good morning, Mike.

早上好，麥克。

Hi. Good morning. Congrats on a nice quarter here. You mentioned in a couple of different segments, some underabsorption related to plant startups and as some investments ramp up. So I was just hoping that you could talk a little bit about how we should think about that playing out during the course of the year. Is that underabsorption worse in Q2 and Q3 and then gets better in Q4? Maybe just talk a little bit about that timing. Thank you.

你好。早安.恭喜您度過了一個愉快的季度。您在幾個不同的領域中提到，一些吸收不足與工廠新創公司以及一些投資的增加有關。所以我只是希望你能談談我們應該如何考慮這一年的情況。吸收不足是否在第二季和第三季更嚴重，然後在第四季變得更好？也許只是談談這個時間安排。謝謝。

Sure. So first of all, it's underabsorption across many of our plants because of lower volume, and it's particularly acute in our consumer businesses. Secondly, we have had some major initiatives which will roll off, from a capital investment perspective, into our P&L, particularly in depreciation.

當然。首先，由於銷售量較低，我們的許多工廠都吸收不足，這在我們的消費業務中尤其嚴重。其次，我們採取了一些重大舉措，從資本投資的角度來看，這些舉措將影響我們的損益表，特別是折舊。

We're sitting in our first-ever RPM combined Innovation Center of Excellence so traditionally, our research and development has been by segment or by operating company. And this is a nearly $20 million investment that's being absorbed in terms of operating costs and depreciation by our specialty products group. So that's part of the challenge to them in what's been a difficult volume environment over the last 12 or 18 months. We have this Resin Center of Excellence, another $20 million investment in Europe. That's also part of the specialty products group, our DayGlo Color Group.

我們坐落在我們有史以來第一個 RPM 聯合創新卓越中心，因此傳統上，我們的研發是按部門或營運公司進行的。這是一項近 2000 萬美元的投資，由我們的特種產品集團用於營運成本和折舊。因此，在過去 12 或 18 個月的困難銷售環境中，這是他們面臨的挑戰的一部分。我們在歐洲又投資了 2,000 萬美元，建立了樹脂卓越中心。這也是我們的 DayGlo Color Group 特種產品集團的一部分。

So we're making some strategic investments. We just ramped up and opened a new facility as part of our platform, developing country group. It reports in PCG in Malaysia, and we will be opening a new plant in India this fall, all adding to operating efficiency, all adding to capacity in places where we're growing but none of which will be fully utilized when they first hit our P&L. Those are just some examples.

所以我們正在進行一些戰略投資。我們剛剛加大力度並開設了一家新工廠，作為我們平台發展中國家集團的一部分。根據馬來西亞PCG 報導，我們將於今年秋天在印度開設一家新工廠，所有這些都會提高營運效率，所有這些都會增加我們正在成長的地方的產能，但當它們第一次進入我們的市場時，這些工廠都不會被充分利用。這些只是一些例子。

All right. That's very helpful. And then I'm kind of curious if you can talk a little bit about the construction business. I feel like last quarter, you guys sounded a little bit less confident on the timing of infrastructure spend. You talked just on this call about maybe that playing out over a little bit longer period. I'm curious, how much do you think that depends on who wins the election in the US? Or do you feel like these are committed dollars that will play out eventually regardless of who wins?

好的。這非常有幫助。我很好奇你能否談談建築業務。我覺得上個季度，你們對基礎建設支出的時機聽起來有點不太有信心。您剛剛在這次電話會議上談到，也許這種情況會在更長的時間內發生。我很好奇，您認為這在多大程度上取決於誰贏得美國大選？或者你覺得這些投入的資金最終會發揮作用，無論誰獲勝？

I think they're committed dollars. It's anybody's guess as to what happens based on who wins. But I think the Biden administration will be committed to seeing through successfully their Inflation Reduction Act spending, a lot of which is going into particular, call it, industrial policy as well as the infrastructure bill permitting, as I mentioned earlier, improved permitting processes will have to be a part of that.

我認為他們承諾美元。任何人都可以根據誰獲勝來猜測會發生什麼。但我認為拜登政府將致力於成功地完成其《減少通貨膨脹法案》支出，其中許多支出將特別用於所謂的產業政策以及基礎設施法案，正如我之前提到的，改進的許可程序將必須成為其中的一部分。

The Trump administration, if they follow through with what they're saying, it's going to double down on onshoring and supporting US manufacturing. So I don't see anything negative about that. The consequences of debt levels, the consequences of higher taxes on corporations, the consequences of tariffs, all of those will not be favorable to manufacturing. And so it depends on what the reality is post election.

川普政府如果言出必行，將加倍加大對美國製造業的本土化和支持。所以我不認為這有什麼負面影響。債務水準的後果、企業增稅的後果、關稅的後果，所有這些都不會有利製造業。因此，這取決於選舉後的現實情況。

All right, thanks very much.

好的，非常感謝。

Mike Sison, Wells Fargo.

麥克西森，富國銀行。

Morning, Michael.

早上好，麥可。

Hey, guys. Hoping the Guardians can execute as well as you guys did. So yeah, I guess just one question. So for '26, what type of volume growth do you think you need to get to that 16%? And then if the Fed rate cuts work, let's hope, what type of volume growth do you think the RPM portfolio should generate over the next couple of years? And maybe if you have any thoughts between the segments.

嘿，夥計們。希望守護者能夠像你們一樣執行。是的，我想只有一個問題。那麼對於 26 年，您認為需要什麼樣的銷售成長才能達到 16%？然後，如果聯準會降息起作用，我們希望，您認為 RPM 投資組合在未來幾年應該產生什麼樣的數量成長？也許您在各個部分之間有任何想法。

Sure. Well, I will tell you if, and this is a big if and very wishful thinking, but if somehow, we're able to turn the corner and generate 2% or 3% consolidated volume growth in the second half of this year, by our fourth quarter, we will be on an annualized run rate of 42% gross profit and 16% EBIT. That's how poised we are. And literally, whether we hit those on time or not is a function of growth. And we're not going to get to $8.5 billion and we don't need to get to $8.5 billion to realize those.

當然。好吧，我會告訴你是否，這是一個很大的假設，也是非常一廂情願的想法，但如果以某種方式，我們能夠扭轉局面，在今年下半年實現2% 或3% 的綜合銷量增長，透過第四季度，我們的年化毛利將達到 42%，息稅前利潤將達到 16%。我們就是這樣泰然處之。從字面上看，我們是否按時實現這些目標是成長的函數。我們不會達到 85 億美元，也不需要達到 85 億美元來實現這些目標。

I don't know the answer to your follow-up question other than my earlier comment, which is if we were on a path to something closer to $8 billion or $8.5 billion for this year, which was our original target, we would be meaningfully ahead of our 42% gross margin and 16% EBIT margin goals.

除了我之前的評論之外，我不知道你的後續問題的答案，即如果我們今年的收入接近 80 億或 85 億美元（這是我們最初的目標），那麼我們將有意義領先於我們42%的毛利率和16% 的息稅前利潤率目標。

Got it. Thank you.

知道了。謝謝。

Steve Byrne, Bank of America.

史蒂夫伯恩，美國銀行。

Morning, Steve.

早安，史蒂夫。

Morning, Frank. I got a couple of questions actually in response to comments that you made, Matt. And that is the first one, just a few minutes ago, you made a comment about deflation was low single digit in the first quarter. You had cost of goods down roughly $50 million. Can you comment on how much of that was raws deflation versus your MAP facility closure initiatives reducing fixed costs? Can you split that out of that $50 million?

早安，弗蘭克。我實際上有幾個問題是為了回應你的評論，馬特。這是第一個，就在幾分鐘前，您發表了有關第一季通貨緊縮處於低個位數的評論。您的商品成本下降了大約 5000 萬美元。您能否評論一下其中有多少是原始通貨緊縮與您減少固定成本的 MAP 設施關閉舉措相比？你能從這 5000 萬美元中分出這筆錢嗎？

Yeah, I mean, so Steve, just to give you a sense, so about we had deflation of 2% in the second quarter. So the rest of it was a variety of different factors that related -- sorry, the first quarter, sorry. And so there are different factors, but certainly, the work that our procurement teams are doing to reduce costs played into that.

是的，我的意思是，史蒂夫，只是為了給你一個感覺，所以第二季我們的通縮率為 2%。所以其餘的都是各種不同的相關因素——抱歉，第一季度，抱歉。因此，存在不同的因素，但可以肯定的是，我們的採購團隊為降低成本所做的工作發揮了作用。

So raw is still roughly 70% of cost of goods so your procurement guys are working okay. And then the other thing you mentioned was about this new facility in Belgium. And Frank, you mentioned just minutes ago about these new plants in India and Asia. To get your ex-US sales to represent more than 20% of the total, is that going to require building out manufacturing facilities globally so that you have more local supply? Or can you do it with more cross-selling or other initiatives that you might have in the works to drive that ex-US sales growth?

因此，原料仍佔商品成本的約 70%，因此您的採購人員正常運作。你提到的另一件事是關於比利時的這個新設施。弗蘭克，您幾分鐘前提到了印度和亞洲的這些新工廠。為了讓您在美國以外的銷售額佔總銷售額的 20% 以上，是否需要在全球範圍內建造製造設施，以便擁有更多的本地供應？或者您可以透過更多交叉銷售或其他計劃來推動美國以外地區的銷售成長？

Sure, it's a great question. And so let me tell you what we've done differently. We did a report out to our Board maybe three years ago, looking back 10 years in M&A, and we have a pretty strong track record of successful acquisitions. But the one area that stood out for us as not meeting our goals was what we called small and far away. And so this was a, call it, the prior 10 years of planting a flag in a distant developed world country with the notion that, that small acquisition would be the catalyst for growth.

當然，這是一個很好的問題。讓我告訴您我們做了哪些不同的事情。大約三年前，我們向董事會提交了一份報告，回顧十年來的併購，我們在成功收購方面擁有相當出色的記錄。但對我們來說，有一個突出的領域未能實現我們的目標，那就是我們所說的小而遙遠的領域。因此，這就是在一個遙遠的已開發國家插上一面旗幟的前十年，其理念是，小額收購將成為成長的催化劑。

And in fact, too many of those small little acquisitions in places in Latin America or Southeast Asia or India or the Middle East were ignored and atrophied. So it's one area where we were destroying value single millions of dollars at a time with an exception, which is our South African and the African air business run by a gentleman named Grant Boonzaier and his team out of South Africa, where almost from the beginning because of the unique nature of that country, they manufacture Carboline and Tremco and Stonhard and then actually folded in a Rust-Oleum acquisition in spray paint in that market.

事實上，在拉丁美洲、東南亞、印度或中東地區，有太多的小規模收購被忽視和萎縮。因此，在這個領域，我們一次損失了數百萬美元的價值，但有一個例外，那就是我們的南非和非洲航空業務，由一位名叫格蘭特·布恩扎爾(Grant Boonzaier) 的紳士和他在南非的團隊經營，幾乎從一開始就在南非由於該國的獨特性，他們生產 Carboline、Tremco 和 Stonhard，然後實際上在該市場收購了 Rust-Oleum，生產噴漆。

So they control all the manufacturing, they control all the administration, but they still go to market independently from a sales and marketing perspective. That was so successful that we, in conjunction with that report to our Board, have now put Grant Boonzaier and his team in charge of the Middle East, Africa, Southeast Asia and India. And we are confident that we now have an approach to profitably grow in the developed world in ways that we didn't in the past. And our last two years of growth and margin improvement there has proven that out.

因此，他們控制了所有的製造，他們控制了所有的管理，但他們仍然從銷售和行銷的角度獨立進入市場。這項舉措非常成功，我們結合向董事會提交的報告，現在讓格蘭特·布恩扎爾 (Grant Boonzaier) 和他的團隊負責中東、非洲、東南亞和印度業務。我們相信，我們現在擁有一種在已開發國家實現獲利成長的方法，而這是我們過去所沒有的。我們過去兩年的成長和利潤率改善已經證明了這一點。

I'm actually going to be in Johannesburg next week with Grant and his team. And so a combination of a recognition of what we were doing wrong on adjustment. And what's true for every business where you have good leaders and we have a collection of good leaders in our platform group, we're going to be successful. And the fact that I'm taking time to go there tells you that we're excited about what that can do for us in the coming years.

事實上，我下週將與格蘭特和他的團隊一起去約翰尼斯堡。因此，我們要認識到我們在調整方面做錯了什麼。對於每一個擁有優秀領導者的企業來說都是如此，而我們的平台團隊中也有一群優秀的領導者，我們就會成功。我花時間去那裡的事實告訴你，我們對未來幾年能為我們做的事情感到興奮。

And so yes, we're going to build out some capacity. We don't have any plans at this point for new capacity beyond the plant in Mumbai and the plant in Malaysia along with existing facilities. But we're very excited about a path to profitable growth that, quite honestly, we really didn't have in the developing world until the last couple of years.

所以，是的，我們將建立一些能力。除了孟買工廠和馬來西亞工廠以及現有設施之外，我們目前沒有任何新產能計劃。但我們對一條獲利成長之路感到非常興奮，老實說，直到過去幾年，我們在發展中國家才真正實現了這一目標。

Thank you.

謝謝。

Joshua Spector, UBS.

約書亞‧斯佩克特，瑞銀集團。

Morning, Josh.

早上好，喬許。

Good morning. This is Lucas Beaumont on for Josh. I just want to go back to the kind of volume outlook for the balance of the year. So I mean, the first quarter was down about 2%. The flat to the second quarter sales guide sort of implies down kind of 1% to 2% as well. So I mean, to kind of hit your low single-digit growth for the year is implying that the volumes are going to pick up in the second half, and they need to be up probably at least 1% to 2% at a minimum to kind of get into that range.

早安.我是盧卡斯·博蒙特（Lucas Beaumont）為喬許（Josh）代言。我只想回到今年剩餘時間的銷售前景。所以我的意思是，第一季下降了約 2%。第二季銷售指南持平也意味著下降 1% 到 2%。所以我的意思是，今年達到低個位數成長意味著下半年銷售量將會回升，並且至少需要成長 1% 到 2%，才能達到預期目標。

So I was just wondering if you could please walk us through sort of where you see sort of the acceleration coming from in the portfolio. And what's giving you confidence in the outlook there, given that, I guess, the end market data has still been either soft or kind of weakening and just to set up where that place will be going? Thanks.

所以我只是想知道您是否可以向我們介紹您在投資組合中看到的加速情況。鑑於我認為終端市場數據仍然疲軟或有所疲軟，並且只是為了確定該地區的發展方向，是什麼讓您對那裡的前景充滿信心？謝謝。

Sure. So I'll take that by segment. As we indicated, both our construction products group and performance coatings group had positive volume growth in the quarter, and that's on top of strong record growth in the prior quarter. And so we see that continuing, albeit at a very modest level.

當然。所以我將按部分進行。正如我們所指出的，我們的建築產品集團和高性能塗料集團在本季度均實現了銷量正增長，而且是在上一季度創紀錄的強勁增長之上。因此，我們看到這種情況仍在繼續，儘管水平非常溫和。

I commented to an earlier question that it feels like our specialty products group, after a very difficult 15 or 18 months, has bottomed out. And we will start to see flat-ish or modest growth there. And so I really think that the optionality to your question is when the consumer segment will turn positive. And we certainly round significantly easier comps there in the second half of the year. And so that's how I think about growth.

我對之前的一個問題評論道，感覺我們的特色產品團隊在經歷了非常困難的 15 或 18 個月之後，已經觸底。我們將開始看到那裡的成長持平或溫和。所以我真的認為你的問題的選擇性在於消費者群體何時會變得積極。我們當然會在今年下半年進行更容易的比賽。這就是我對成長的看法。

We are managing well and finding pockets of growth in our more industrial segment operating units SPG turning the corner. Consumer is going to be facing easier comps in the second half. But what happens in consumer will be the variable in meeting or beating our guidance for the year.

我們管理得很好，並在我們的更多工業部門營運單位 SPG 中發現了一些成長點。下半年，消費者將面臨更輕鬆的競爭。但消費者中發生的情況將是達到或超過我們今年指導的變數。

Great. Thanks. And then just on the consumer side, so I'd preface this by saying that you guys have seemingly outgrown your end markets there for sort of quite a while. But just in terms of the broader markets, the DIY has now been weak for a number of years. We sort of had the high growth period in the pandemic that kind of masked the underlying growth trends there in the market.

偉大的。謝謝。然後就消費者方面而言，我想在序言中說，你們的終端市場似乎已經超出了相當長一段時間了。但僅就更廣大的市場而言，DIY多年來一直疲軟。我們在大流行中經歷了高速成長期，這掩蓋了市場的潛在成長趨勢。

But now most of the producers are sort of back below sort of what the pre-pandemic levels were. So it's sort of really sort of hidden what the underlying potential growth trends are, I think. So I was just curious to kind of get your thoughts on like what the medium-term sort of end market algorithm looks like they're now in consumer. Is that -- could that potentially be lower than what we thought it was like a few years ago? Or do you think this is like a longer cycle business? So this has just been quite a really long cycle with the interest rates.

但現在大多數生產商的水平都低於大流行前的水平。因此，我認為，這實際上隱藏了潛在的潛在成長趨勢。因此，我只是想了解一下您對終端市場中期演算法現在在消費者中的看法。這是否可能低於我們幾年前的預期？還是你認為這就像是週期較長的業務？因此，這是一個相當長的利率週期。

And then as we get that to come down, we'll see sort of inflection later. So just wondering on your thoughts there. And then maybe if you could -- it would be helpful if you want to put it in the context of what happened in the last cycle in 2008, if that had helped, too, that would be great. Thanks.

然後當我們把它降下來時，我們稍後會看到某種變化。所以只是想知道你的想法。然後也許如果你可以——如果你想把它放在 2008 年上一個週期發生的事情的背景下，那會很有幫助，如果這也有幫助，那就太好了。謝謝。

Sure. So first of all, I think your assessment of that market through the COVID cycle is correct. There are big spikes and then people have found themselves back to kind of pre-COVID volumes and have added to adjust accordingly. The biggest driving factor, at least in our portion of DIY, is housing turnover. You went through the COVID challenges, the price -- massive inflation-driven price increases in housing, whether that's rental or -- and what we care about is homes and high interest rates and high mortgage rates.

當然。首先，我認為您在整個新冠疫情週期中對該市場的評估是正確的。出現大幅峰值，然後人們發現自己回到了新冠疫情之前的水平，並相應地進行了調整。最大的驅動因素（至少在我們的 DIY 部分）是住房週轉率。你們經歷了新冠疫情帶來的挑戰、價格——通膨驅動的房屋價格大幅上漲，無論是租金還是——我們關心的是房屋、高利率和高抵押貸款利率。

And historically, they're not crazy high. If you're my age, you remember these as pretty reasonable. But for a period of 10 or 15 years, people could buy long-dated mortgages at very low interest rates. And so the mortgage costs, I think everybody on the call knows this, we are at 30-year low. And so I think the big driver here, there's nothing cyclically changing or structurally changing about our industry. But we get a double bang when someone sells a house. They use our patch and repair products and our small project, redecorating products to fix up their home to prepare it for sale.

從歷史上看，它們並沒有達到瘋狂的高度。如果你是我這個年紀，你會記得這些都是相當合理的。但在 10 或 15 年期間，人們可以以非常低的利率購買長期抵押貸款。所以抵押貸款成本，我想每個參加電話會議的人都知道這一點，我們正處於 30 年來的最低點。因此，我認為這裡的主要驅動力是，我們的產業沒有任何週期性變化或結構性變化。但當有人賣掉房子時，我們會受到雙重打擊。他們使用我們的修補和維修產品以及我們的小型專案、重新裝修產品來修復他們的房屋以準備出售。

And then a new person buys that home, and they redecorate a room. They do an addition. They redecorate a kitchen or a bathroom, again, whether it's our DAP caulk and sealant, patch repair products, the Rust-Oleum and/or Zinsser primer products get a benefit from that. We're at a 30-year low in housing turnover. As interest rates improve and as the housing turnover picks back up, which it will, you'll see those -- the dynamics that, that drives in our consumer segment pick back up as well.

然後有個新人買了那棟房子，他們重新裝修了一個房間。他們做了補充。他們重新裝修廚房或浴室，無論是我們的 DAP 填縫劑和密封劑、修補產品、Rust-Oleum 和/或 Zinsser 底漆產品都從中受益。我們的住房週轉率正處於 30 年來的最低點。隨著利率的提高和房屋成交量的回升，你會看到那些推動我們消費領域的動力也會回升。

So we don't think anything structurally has changed. We just find ourselves in a unique circumstance relative to housing prices and turnover, and your correct assessment of the big spike and then decline relative to what happened during COVID.

因此，我們認為結構上沒有發生任何變化。我們只是發現自己處於一個相對於房價和營業額而言的獨特情況，以及您對相對於新冠疫情期間發生的情況的大幅上漲和隨後下降的正確評估。

All right, thank you.

好的，謝謝。

Silke Kueck, JPMorgan.

西爾克·庫克，摩根大通。

Morning, Silke.

早安，西爾克。

Hi. How are you? I'm sitting in for Jeff today. Your second quarter outlook is for like flat sales and 5% EBIT growth. And like what that translates into is like $1.8 billion in sales and like $250 million in EBIT. And that really means that your EBIT margin is something like 14% in the second quarter. And does that seem the right number? Or does it seem low? Because if you hold your gross margin flat, I would imagine, I think your SG&A spending is going up. Or do you -- like it seems like a big -- like I understand at the margin -- there's always a margin deterioration in the smaller quarter, but unless you're beginning to spend on SG&A again, it seems -- it's a conservative outlook.

你好。你好嗎？今天我代替傑夫。您對第二季的預期是銷售額持平，息稅前利潤成長 5%。這相當於 18 億美元的銷售額和 2.5 億美元的息稅前利潤。這實際上意味著第二季度的息稅前利潤率約為 14%。這個數字看起來正確嗎？或者看起來很低？因為如果你維持毛利率不變，我想你的銷售、管理及行政費用將會上升。或者你——就像它看起來很大——就像我在邊際上所理解的那樣——較小季度的利潤率總是會惡化，但除非你再次開始在SG&A上花錢，否則似乎— —這是保守的做法前景。

So -- yes, I appreciate your comment about cyclicality. So our different quarters obviously have different margin profiles based on not cyclicality but the seasonality of our businesses. And so our second quarter is typically lower in volume seasonally than Q1 or Q4. But versus the prior year second quarter, I would anticipate us holding or marginally improving gross margins.

所以——是的，我很欣賞你對週期性的評論。因此，我們不同的季度顯然有不同的利潤率，這不是基於週期性，而是基於我們業務的季節性。因此，我們第二季的季節性銷售通常低於第一季或第四季。但與去年第二季相比，我預計我們的毛利率將維持或略有增加。

And the SG&A discipline that we initiated in Q4, we will certainly hold in Q2. So I don't think there's anything that's changing in terms of the margin dynamics or the SG&A spending or the gross margin improvement driven by MAP that you're seeing in Q1. It's really just a function of volume growth. And so the premise of your question is correct.

我們在第四季啟動的 SG&A 紀律，我們肯定會在第二季堅持下去。因此，我認為第一季的利潤率動態、SG&A 支出或 MAP 推動的毛利率改善沒有任何變化。它實際上只是數量增長的函數。所以你的問題的前提是正確的。

And no, we're not going to be sliding backwards on margins, and no, we're not going to be giving up SG&A discipline. So in many instances, and I think this is the guidance we provided feels today a little bit into our second quarter, that Q2 is going to look like Q1. Any additional volume growth than we're anticipating will make that improve.

不，我們不會在利潤率上倒退，不，我們不會放棄銷售管理、行政管理（SG&A）紀律。因此，在很多情況下，我認為這是我們今天提供的指導，感覺第二季有點像第一季。任何超出我們預期的銷售成長都會使這一情況有所改善。

Is your expectation that your SG&A spending in total will be down for the year?

您預計今年的 SG&A 支出總額會下降嗎？

I don't know that. I don't have that in front of me. Our expectation is our SG&A as a percent of sales will be improved for the year. But I don't know, Silke, off the top of my head, actual dollars. I can tell you this, and again, the same will be true in the second quarter, and this is really a testament to the design and execution of our MAP initiatives, and it is across RPM.

我不知道。我面前沒有那個。我們的預期是，我們的 SG&A 佔銷售額的百分比將在今年有所提高。但我不知道，西爾克，我的腦海中浮現出實際的美元。我可以再次告訴您，第二季也是如此，這確實證明了我們 MAP 計劃的設計和執行，而且是跨 RPM 的。

We had $20-some million in fiscal '24 of Green Belt-driven improvements. And that is a $100,000 improvement here and a $200,000 improvement there across our plants and across our businesses, and so those disciplines are continuing. And so our strength in these programs is a cultural change and then the real focus in many, many places on continuous improvement and operating excellence, in most cases, the dollar amounts of which aren't huge. But when you add them all up, they're meaningfully moving our conversion costs and adding to our bottom line.

我們在 24 財年投入了 20 多萬美元用於綠帶驅動的改進。在我們的工廠和業務範圍內，這裡改善了 10 萬美元，那裡改善了 20 萬美元，因此這些紀律仍在繼續。因此，我們在這些計劃中的優勢在於文化變革，然後在許多地方真正專注於持續改進和卓越運營，在大多數情況下，其金額並不大。但當你把它們全部加起來時，它們會有意義地降低我們的轉換成本並增加我們的利潤。

In most of my career, in our industry, if you had a 2% decline in sales, you'd be giving credit to have managed your decremental impact quite well if your earnings only declined 4% or 6%. When we pump out another quarter of flat sales, it can show solid EBIT growth and teens EPS growth, I think we're operating at a pretty good level. Our challenge is growth, and we are working on it intensely. And it's true across the whole industry, but we want to be the company that comes out of the box sooner and with a point or two of better growth than everyone else. And when that happens, we'll really reap the benefits of our MAP initiatives.

在我職業生涯的大部分時間裡，在我們這個行業，如果你的銷售額下降了2%，如果你的收入只下降了4% 或6%，你會認為你很好地管理了你的下降影響。當我們再實現一個季度的銷售持平時，它可以顯示出穩健的息稅前利潤增長和十幾歲的每股收益增長，我認為我們的運營水平相當不錯。我們的挑戰是成長，我們正在為此努力。整個產業都是如此，但我們希望成為一家能夠更快走出困境、比其他公司成長一兩點的公司。當這種情況發生時，我們將真正獲得 MAP 計劃的好處。

I also wanted to ask about the -- so like a MAP-related question on that matter. So there's about like $25 million in charges that you took in the quarter between like restructuring charges, professional fees, ERP consolidation. And arguably, these are like all MAP initiatives. And so if that's the run rate for the year, there's sort of like $100 million in spend that's tied to the $125 million run rate in MAP savings, right? Is that like the right way to think about it?

我還想問一個與 MAP 相關的問題。因此，您在本季收取的費用約為 2500 萬美元，其中包括重組費用、專業費用、ERP 整合費用。可以說，這些就像所有 MAP 措施一樣。因此，如果這是今年的運行率，那麼大約有 1 億美元的支出與 MAP 節省的 1.25 億美元的運行率相關，對吧？這是正確的思考方式嗎？

Yeah. I don't have the cost in front of me, maybe Matt or Rusty can dig them up. It's our expectations that when we finish the year, we will have benefited fiscal '25 on a full run rate. You won't see it flow through our P&L. But when we achieve the remaining part of MAP '25, we will have improved our cost structure and efficiency across RPM by another $180 million.

是的。我面前沒有成本，也許馬特或拉斯蒂可以把它們挖出來。我們預計，當我們今年結束時，我們將在 25 財年全面受益。您不會看到它流經我們的損益表。但是，當我們實現 MAP '25 的剩餘部分時，我們將在 RPM 方面的成本結構和效率再提高 1.8 億美元。

Not all of that will flow into fiscal '25. You'll see the full amount of that flow into fiscal '26. And the costs related to some plant consolidation in Europe through significant spends in the data area, so we're spending more dollars in the IT data area, which are onetime, to really marry up data which is helping us a lot.

並非所有這些都會流入 25 財年。您將看到流入 26 財年的全部金額。歐洲一些工廠整合的成本是透過在數據領域的大量支出而產生的，因此我們在 IT 數據領域花費了更多的資金，這次是為了真正將數據結合起來，這對我們有很大幫助。

Yeah, and Silke, if you need more detail, we provide that in the earnings release. Behind the supplemental segment information, you'll see a footnote in there that breaks out the MAP add-backs in (technical difficulty) restructuring related to plant closures, ERP, and professional fees.

是的，西爾克，如果您需要更多詳細信息，我們會在收益發布中提供。在補充細分資訊後面，您會看到一個腳註，其中詳細列出了與工廠關閉、ERP 和專業費用相關的（技術難度）重組中的 MAP 附加內容。

That's right. That's where I got the $25 million from so I was just wondering if that's the right number to annualize to sort of think about the cost tied to that. Yeah, if I can ask a last question. So there's like this litigation between Rust-Oleum and NIC Industries. Is the resolution of that, that you'll have to take like a $190 million accrual?

這是正確的。我就是從那裡得到 2500 萬美元的，所以我只是想知道這個數字是否適合按年計算，以考慮與此相關的成本。是的，如果我可以問最後一個問題的話。Rust-Oleum 和 NIC Industries 之間就有這樣的訴訟。您是否必須承擔 1.9 億美元的應計費用？

No. So the range on that is $0.5 million, which is our current accrual and the original verdict of $190 million. We are sticking with the lower end of that range. To put that in context, this is about a $2 million set of the Rust-Oleum Wipe New products. And it is a contractual IP litigation.

不。因此，範圍是 50 萬美元，這是我們目前的應計金額，最初的判決是 1.9 億美元。我們堅持該範圍的下限。從上下文來看，這是一套價值約 200 萬美元的 Rust-Oleum Wipe 新產品。這是一場合約智慧財產權訴訟。

It is not product performance, not any other liability. And so I think just the simple fact that you're dealing with a $2 million product line in light of the original verdict kind of puts in context many reasons why we feel strongly about the possibility of a significantly different outcome on appeal.

這不是產品性能，也不是任何其他責任。因此，我認為，根據最初的判決，您正在處理一條價值 200 萬美元的產品線，這一簡單事實就足以說明我們強烈認為上訴結果可能會出現顯著不同的可能性的許多原因。

Aleksey Yefremov, KeyBanc Capital Markets.

Aleksey Yefremov，KeyBanc 資本市場。

Good morning.

早安.

Thanks. Good morning, everyone. In PCG, you mentioned positive impact of more effective sales management systems. Could you just elaborate on that, please?

謝謝。大家早安。在 PCG，您提到了更有效的銷售管理系統的正面影響。請您詳細說明一下好嗎？

Sure. We are using data to look at our different product lines, PCG, Consumer, CPG, almost all of our businesses. And we have moved from a company that, quite honestly, four or five years ago wasn't very good at analyzing mix on its prior financials like this quarter or the past year, to a company that is using data to try and manage mix on a prospective basis. So we are incentivizing with adjusted commission or bonus structures our sales forces to focus on the products that we have a competitive advantage on and typically higher margins. And it's having a positive effect.

當然。我們正在使用數據來審視我們不同的產品線，PCG、消費品、CPG 以及幾乎所有業務。老實說，我們已經從一家四五年前不太擅長分析其先前財務數據（例如本季度或過去一年）的組合的公司，轉變為一家使用數據嘗試和管理組合的公司。 。因此，我們透過調整佣金或獎金結構來激勵我們的銷售人員專注於我們具有競爭優勢且通常利潤率更高的產品。它正在產生積極的影響。

And so it's just being more sophisticated with data. It's being more sophisticated with understanding the true profitability in real-time of different product lines or SKUs and then either adjusting through some product line rationalizations or adjusting through incentive programs where we're focusing our sales force's time and attention, and you're seeing that as a piece of the margin improvement.

因此，數據處理變得更加複雜。透過即時了解不同產品線或SKU 的真實獲利能力，然後透過一些產品線合理化進行調整，或透過激勵計畫進行調整，我們將集中銷售人員的時間和注意力，你會看到，它變得更加複雜。

It's interesting to note in the quarter when you look at our MAP savings, and again, this will highlight for those on the call why we're so focused on volume. 80% of our MAP savings were in the gross profit cost of sales line. And so that's where a lot of MAP '25 is focused. Whether it's driving better conversion cost or whether it's driving an improved product mix. It's great news. It's hard work. It's happening everywhere. And as I said earlier, it doesn't mean a damn thing unless you can sell another dollar of volume. And then that extra dollar of volume or that extra unit volume really hits your bottom line well because it fully reflects the benefits of all the work.

有趣的是，當您查看本季度我們的 MAP 節省時，這將再次向那些參加電話會議的人強調為什麼我們如此關注數量。我們 80% 的 MAP 節省都反映在銷售線的毛利成本中。這就是 MAP '25 的重點所在。無論是提高轉換成本或是改進產品組合。這是個好消息。這很辛苦。這種事到處都在發生。正如我之前所說，除非你能再賣出一美元的銷量，否則這沒有什麼意義。然後，額外的一美元銷售或額外的單位銷售確實會很好地達到你的底線，因為它充分反映了所有工作的好處。

Okay. Thanks a lot Frank.

好的。非常感謝弗蘭克。

Thank you.

謝謝。

(Operator Instructions) Arun Viswanathan, RBC Capital Markets.

（操作員指示）Arun Viswanathan，RBC 資本市場。

Good morning, Arun.

早安，阿倫。

Good morning, Frank. Thanks for taking my question. I think you've answered most of them, but maybe I'll just get some of your elaborated thoughts on a comment you made earlier. So commercial, I guess, hasn't been that great but you've still been able to see some success in CPG and PCG. So do you expect that to continue or is commercial kind of maybe regressing a little bit more? And do you expect any kind of benefit from lower rates there or is that more of a consumer phenomenon? Thanks.

早安，弗蘭克。感謝您提出我的問題。我認為您已經回答了其中的大部分問題，但也許我只會了解您對之前發表的評論的一些詳細想法。我想，商業化並沒有那麼好，但你仍然能夠在 CPG 和 PCG 領域看到一些成功。那麼你預計這種情況會持續下去還是商業上可能會出現更多的倒退？您預期較低的利率會帶來什麼好處嗎？謝謝。

Sure. So yes, in terms of lower rate impact, and I'll go back to my earlier comment and the work that Rusty did for our Board. Just like it took a couple of quarters and three or four of the interest rate increases to finally slow down manufacturing. And I can tell you, the broader economy apparently didn't get into a recession, but if you're in manufacturing or housing, the last 15 months have not been a lot of fun.

當然。所以，是的，就較低的利率影響而言，我將回到我之前的評論以及 Rusty 為我們的董事會所做的工作。就像花了幾個季度和三、四個季度的升息才最終減緩製造業一樣。我可以告訴你，更廣泛的經濟顯然沒有陷入衰退，但如果你從事製造業或房地產業，過去 15 個月並沒有太多樂趣。

And so I think it will take the same couple -- two or three quarters or two or three interest rate cuts to start to flow into a pickup in broader commercial new construction and housing. In the interim, so I'll give you a couple of examples. Panelization is a big area of focus for our construction products group. It is the assembly of panels that are sent into commercial areas. It allows for less labor and a more rapid construction time cycle. And so that's an area we're focused and it's an area that's growing.

因此，我認為同樣需要兩個或三個季度或兩到三次降息才能開始促進更廣泛的商業新建和住房的回升。在此期間，我將給您舉幾個例子。鑲板是我們建築產品集團的一個重點領域。它是發送到商業區域的面板的組裝。它可以減少勞動力並縮短施工時間週期。所以這是我們關注的一個領域，也是一個正在成長的領域。

Nudura, which was principally residential and in the beginning of COVID boomed, so a $40 million business that boomed up to $100 million. And then when interest rates went up and the housing market slowed, we saw a decline in revenues of 30% or 40%. There is now a very concerted effort at Tremco with Nudura to focus on schools, to focus on facilities that house safety personnel, so think police departments, fire departments, EMS. And we are seeing specs grow and we are seeing real solid double-digit growth, albeit on a lower base.

Nudura 主要是住宅區，在新冠疫情初期蓬勃發展，因此價值 4,000 萬美元的業務迅速增長至 1 億美元。然後，當利率上升且房地產市場放緩時，我們看到收入下降了 30% 或 40%。現在，Tremco 與 Nudura 正在共同努力，專注於學校、安全人員安置設施，例如警察部門、消防部門、緊急醫療救助部門。我們看到規格正在成長，我們看到真正穩健的兩位數成長，儘管基數較低。

But what's exciting about it is it's a much better balance between residential and commercial activity from what was previously mostly a residential product line. So there are real deliberate, thoughtful, strategic efforts across multiple product lines like the two examples I gave, again, to figure out how to get growth in a pretty low growth, no growth environment.

但令人興奮的是，它在住宅和商業活動之間實現了更好的平衡，而以前主要是住宅產品線。因此，跨多個產品線進行了真正深思熟慮的、深思熟慮的戰略努力，就像我再次給出的兩個例子，以找出如何在成長相當低、沒有成長的環境中實現成長。

Okay. Thanks for that. And then just maybe another follow-up on capital allocation. So is it, I guess, your objectives to continue to grow inorganically maybe through bolt-ons? Or is there something a little bit more substantial that you could pursue? And similarly, are there any product lines that are potentially holding back your growth and maybe would be best in another company or -- and you're looking to dispose of? Or what's kind of the portfolio review kind of telling you these days?

好的。謝謝你。然後也許是資本配置的另一個後續行動。那麼，我想，您的目標是透過補充方式繼續無機成長嗎？或者你可以追求一些更實質的東西？同樣，是否有任何產品線可能會阻礙您的成長，並且可能在另一家公司中是最好的，或者您正在尋求處置？或是最近的投資組合審查告訴你什麼？

Sure. So we constantly look at our portfolio and we pruned a couple of product lines over the last two years. We had what was a material chemical treatment for fabric and leather, our Guardian Protective Products business that, over time, turned into basically a consumer warranty business. It used to -- they call them dry warranties, that meant you were issuing warranties without selling product. And we did not see ourselves as being competitive in that space.

當然。因此，我們不斷審視我們的產品組合，並在過去兩年中精簡了幾條產品線。我們對織物和皮革進行了材料化學處理，我們的衛報防護產品業務，隨著時間的推移，基本上變成了消費者保固業務。過去，他們稱之為乾保修，這意味著您在不銷售產品的情況下發出保固。我們並不認為自己在這個領域具有競爭力。

So a couple of years, we sold that. Very high margin, really good people, but the ability for us to compete with big players in the insurance industry was not in the cards so we sold it. We had some infrastructure service businesses in the UK. Unlike Tremco Roofing and Stonhard, which the majority of a supply and apply contract, 50% or more is material. In this case, it was a construction services business that was very lumpy and had high working capital requirements. So we divested that business through an MBO and then shut down another part of that business.

幾年後，我們把它賣掉了。利潤非常高，人才非常好，但是我們不可能與保險業的大公司競爭，所以我們賣掉了它。我們在英國有一些基礎設施服務業務。與 Tremco Roofing 和 Stonhard 不同的是，這兩家公司的大部分供應並適用合同，其中 50% 或更多是材料。在這種情況下，這是一個非常不穩定且營運資金要求很高的建築服務業務。因此，我們透過管理層收購剝離了該業務，然後關閉了該業務的另一部分。

So the pruning we've been doing has been more akin to the portfolio reviews or kind of product rationalizations of looking at product lines, or in those two cases, smaller businesses that didn't fit the criteria that we're striving for. We'll continue to do that, but we don't have any large divestitures in mind today. And we will continue to pursue the small to medium bolt-on product line program that's been very effective for RPM for the last 20 or 30 years.

因此，我們一直在做的修剪更類似於投資組合審查或產品線的產品合理化，或者在這兩種情況下，不符合我們正在努力的標準的小型企業。我們將繼續這樣做，但今天我們沒有任何大規模的資產剝離計劃。我們將繼續推行中小型附加產品線計劃，該計劃在過去 20 或 30 年中對 RPM 非常有效。

We are always open to the large transactions that are out there, we'll look at them. It would be irresponsible not to. And I can say this because it was very public. PPG hired Goldman Sachs to sell their $2 billion North American architectural business. Of course, we looked at it. But we continue and will continue to apply the RPM discipline to value. We're not interested in getting bigger. We're interested in getting better.

我們始終對現有的大型交易持開放態度，我們會關注它們。不這樣做是不負責任的。我可以這樣說，因為這是非常公開的。PPG 聘請高盛出售其價值 20 億美元的北美建築業務。當然，我們也看了。但我們將繼續並將繼續將 RPM 規則應用於價值。我們對變得更大不感興趣。我們有興趣變得更好。

Thanks.

謝謝。

This concludes our question-and-answer session. I'd like to turn the conference back over to Frank Sullivan for closing remarks.

我們的問答環節到此結束。我想將會議轉回弗蘭克·沙利文致閉幕詞。

Thank you, Rocco, and thank you to all for your participation in our investor call today. We appreciate your interest and investment in RPM. Many thanks to our associates, some of whom are on the call for what's been a really remarkable combined effort of 17,000-plus associates around the globe who are executing in each in their way on our MAP initiatives. The cultural change that we've effected is more powerful than the simple act of closing plants or some of the cost reduction actions we've taken and it's paying off for us.

謝謝羅科，也謝謝大家參加我們今天的投資人電話會議。我們感謝您對 RPM 的興趣和投資。非常感謝我們的員工，其中一些員工正在響應號召，全球 17,000 多名員工以各自的方式執行我們的 MAP 計劃，這是一項非常出色的共同努力。我們所實現的文化變革比關閉工廠或我們採取的一些成本削減措施的簡單行為更加強大，並且它為我們帶來了回報。

We have our virtual Annual Meeting of Stockholders tomorrow at 1:30 PM Eastern Time and would welcome any and all of you to participate in that as well. Thank you for your interest in RPM. Have a great day.

我們將於東部時間明天下午 1:30 舉行虛擬股東年會，並歡迎大家參加。感謝您對 RPM 的興趣。祝你有美好的一天。

Thank you. This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.

謝謝。今天的電話會議到此結束。我們感謝大家參加今天的演講。您現在可以斷開線路並度過美好的一天。