宣偉 (SHW) 2023 Q2 法說會逐字稿

Good morning. Thank you for joining The Sherwin-Williams Company Review of Second Quarter 2023 results and our outlook for the third quarter and full year of 2023. This conference call is being webcast simultaneously in listen-only mode by Issuer Direct via the Internet at www.sherwin.com. An archived replay of this webcast will be available at www.sherwin.com, beginning approximately 2 hours after this conference call concludes.

早上好。感謝您參加宣偉公司對 2023 年第二季度業績的回顧以及我們對 2023 年第三季度和全年的展望。本次電話會議由 Issuer Direct 通過互聯網以收聽模式同時進行網絡直播，網址為 www.sherwin .com。本次電話會議結束後大約 2 小時後，將在 www.sherwin.com 上提供該網絡廣播的存檔重播。

This conference call will include certain forward-looking statements as defined under the U.S. federal securities laws with respect to sales, earnings and other matters. Any forward-looking statement speaks only as of the date on which such statement is made, and the company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. A full declaration regarding forward-looking statements is provided in the company's earnings release transmitted earlier this morning. After the company's prepared remarks, we will open the session to questions.

本次電話會議將包括美國聯邦證券法定義的有關銷售、收益和其他事項的某些前瞻性聲明。任何前瞻性聲明僅代表截至該聲明作出之日的情況，公司不承擔更新或修改任何前瞻性聲明的義務，無論是由於新信息、未來事件還是其他原因。今天上午早些時候發布的公司財報中提供了有關前瞻性陳述的完整聲明。在公司準備好發言後，我們將開始提問。

I will now turn the call over to Jim Jaye, Senior Vice President, Investor Relations and Communications.

我現在將把電話轉給投資者關係和傳播高級副總裁 Jim Jaye。

Thank you, and good morning to everyone. Joining me on the call today are John Morikis, Chairman and CEO; Heidi Petz, President and Chief Operating Officer; Al Mistysyn, Chief Financial Officer; and Jane Cronin, Senior Vice President of Enterprise Finance.

謝謝大家，祝大家早上好。今天和我一起參加電話會議的是董事長兼首席執行官約翰·莫里基斯 (John Morikis)；海蒂·佩茨，總裁兼首席運營官； Al Mistysyn，首席財務官；以及企業財務高級副總裁 Jane Cronin。

Sherwin-Williams delivered excellent second quarter results compared to the same period a year ago. These results, coupled with a similar strong performance in the first quarter led to an excellent first half that exceeded the expectations we laid out back in January. Given the strong first half and current visibility into our second half, we are significantly increasing our full year guidance, which John will talk about in just a few minutes.

與去年同期相比，宣偉第二季度業績表現出色。這些結果，加上第一季度類似的強勁表現，導致上半年表現出色，超出了我們在一月份制定的預期。鑑於上半年的強勁表現和當前下半年的可見性，我們將大幅提高全年指導，約翰將在幾分鐘內討論這一點。

But first, let me touch on a few second quarter highlights. Consolidated net sales in the quarter exceeded our expectations and grew by a mid-single-digit percentage. Sales in all 3 reportable segments came in above our guided range. Gross margin significantly improved sequentially and year-over-year driven by strong volume in the Paint Stores Group and moderating raw material costs.

但首先，讓我談談第二季度的一些亮點。本季度的綜合淨銷售額超出了我們的預期，實現了中個位數百分比的增長。所有 3 個可報告細分市場的銷售額均高於我們的指導範圍。在油漆店集團銷量強勁和原材料成本下降的推動下，毛利率環比和同比顯著改善。

Pricing discipline remains strong. SG&A expense increased over the prior year quarter, though the year-over-year percentage increase was lower than that of our first quarter. Excluding the impact of incremental acquisition and restructuring costs, SG&A increased 8% year-over-year. Approximately 85% of that second quarter increase was related to investments in Paint Store Group long-term growth initiatives with the remainder driven by increases in compensation and benefits.

定價紀律依然嚴格。 SG&A 費用較上年同期有所增加，但同比增幅低於第一季度。排除增量收購和重組成本的影響，SG&A 同比增長 8%。第二季度增長的約 85% 與 Paint Store Group 長期增長計劃的投資有關，其餘部分則由薪酬和福利的增長推動。

We are highly confident these growth investments will deliver strong returns and benefit our customers. And while we recognize SG&A expense was higher year-over-year in the quarter, we ultimately manage the business to drive operating profit and margin, both of which expanded meaningfully in the quarter. We are committed to investing in and profitably growing the business at the same time.

我們非常有信心這些增長投資將帶來豐厚的回報並使我們的客戶受益。雖然我們認識到本季度的銷售、管理及行政費用同比較高，但我們最終管理業務是為了推動營業利潤和利潤率，這兩者在本季度都大幅增長。我們致力於同時投資業務並實現盈利增長。

Segment margin in all 3 reportable segments expanded sequentially and year-over-year. We also delivered strong double-digit growth in adjusted diluted net income per share and EBITDA with adjusted EBITDA margin of 20.9% near the high end of our current long-term 19% to 21% target range.

所有 3 個可報告分部的分部利潤率均逐年擴大。我們的調整後稀釋每股淨利潤和 EBITDA 也實現了兩位數的強勁增長，調整後 EBITDA 利潤率為 20.9%，接近我們當前 19% 至 21% 長期目標範圍的上限。

Let me now turn it over to Heidi, who will provide some commentary on our second quarter results by segment. John will follow Heidi with comments on our outlook before we move on to your questions.

現在讓我將其交給海蒂，她將按部門對我們第二季度的業績進行一些評論。在我們繼續回答您的問題之前，約翰將跟隨海蒂對我們的前景發表評論。

Thank you, Jim. I'll begin with the Paint Stores Group. Second quarter Paint Stores Group sales were ahead of our expectations and increased 10%, driven by mid-single-digit volume growth and continued effective pricing. Segment margin improved 280 basis points to 24.3%.

謝謝你，吉姆。我將從油漆店集團開始。在中等個位數的銷量增長和持續有效的定價的推動下，第二季度 Paint Stores Group 銷售額超出了我們的預期，增長了 10%。部門利潤率提高了 280 個基點，達到 24.3%。

Growth was led by our protective & marine business, which was up strong double digits and was driven by industrial flooring infrastructure and oil and gas applications. In our pro-architectural end markets, the strongest performers were commercial and property maintenance, both of which increased by double-digit percentages. Residential repaint was close behind with sales up by a high single-digit percentage. Demand in this market is being somewhat tempered by the extended period of weak existing home sales. New residential sales were flat against a double-digit comparison, reflecting the softer start that we saw at the end of last year, which have continued into this year.

增長由我們的防護和海洋業務帶動，在工業地坪基礎設施以及石油和天然氣應用的推動下，該業務實現了兩位數的強勁增長。在我們的建築終端市場中，表現最強勁的是商業和物業維護，兩者均實現了兩位數百分比的增長。住宅重新粉刷緊隨其後，銷售額增長了很高的個位數百分比。由於成屋銷售長期疲弱，該市場的需求在一定程度上受到抑制。新住宅銷售量與兩位數持平，反映出我們去年年底看到的較疲軟的開局，這種情況一直持續到今年。

As we've previously noted, we anticipated new residential would be challenging in 2023, though we are performing better than the market as we continue to focus on new accounts and share gains. Our DIY business was up strong double digits, albeit against a softer comparison where sales were impacted by supply chain challenges.

正如我們之前指出的，我們預計 2023 年新住宅市場將面臨挑戰，儘管我們的表現優於市場，因為我們繼續關注新客戶和份額收益。儘管銷售受到供應鏈挑戰的影響，但我們的 DIY 業務仍實現了兩位數的強勁增長。

From a product perspective, interior and exterior paint sales were both up high single digits, with interior sales growing faster and representing a larger part of the mix. Sales in our Consumer Brands Group also exceeded our guidance and increased by 5.1% in the quarter, primarily driven by mid-single-digit pricing.

從產品角度來看，室內外塗料銷量均出現高個位數增長，其中室內塗料銷量增長更快，佔比更大。我們的消費品牌集團的銷售額也超出了我們的指導，本季度增長了 5.1%，這主要是受到中個位數定價的推動。

Sales in North America, our largest region, increased by a low single-digit percentage. We continue to invest here with our strategic retail partners for growth. In other regions, sales were up strong double digits in Latin America and Europe. Sales in China were down double digits, and we expect the previously announced divestiture of the China business to be completed in the third quarter. Adjusted segment margin was 15.7%, up 470 basis points year-over-year. Sales in the Performance Coatings Group increased less than 1% against a strong 15.2% comparison.

我們最大的地區北美的銷售額增長了較低的個位數百分比。我們繼續與戰略零售合作夥伴一起投資以實現增長。在其他地區，拉丁美洲和歐洲的銷售額實現了兩位數的強勁增長。中國銷售額下降兩位數，我們預計之前宣布的中國業務剝離將在第三季度完成。調整後分部利潤率為 15.7%，同比增長 470 個基點。高性能塗料集團的銷售額增幅不到 1%，而同期增幅高達 15.2%。

Volume decreased low single digits but was offset by mid-single-digit increases in price. Adjusted segment margin increased 420 basis points to 18% of sales, which is within the range we have been targeting for this business.

成交量下降至低個位數，但被價格中個位數的上漲所抵消。調整後的分部利潤率增加了 420 個基點，佔銷售額的 18%，這在我們為該業務設定的目標範圍內。

Sales in PCG varied significantly by region. In North America, sales increased low single digits against a nearly 30% comp. Sales in Europe were up mid-single digits. Latin America sales were down less than 1%, also against a strong comp of over 20%. Demand in Asia remained weak with sales down double digits against a soft period a year ago.

PCG 的銷售額因地區而異。在北美，銷售額僅實現低個位數增長，而同期增長率接近 30%。歐洲的銷售額增長了中個位數。拉丁美洲的銷售額下降了不到 1%，而同期的銷售額也下降了 20% 以上。亞洲的需求依然疲軟，銷售額比一年前的疲軟時期下降了兩位數。

From a division perspective, growth was strongest in Auto Refinish, which is up by a high single-digit percentage followed by General Industrial, which was up mid-single digits. Industrial wood sales were up less than 1% as softness in new residential continued to impact demand for furniture, carpentry and flooring. Coil sales were down mid-single digits driven mainly by Europe, which was impacted by last year's Russia exit and against the nearly 40% comparison.

從部門角度來看，汽車修補漆的增長最為強勁，增長了高個位數百分比，其次是通用工業，增長了中個位數。由於新住宅的疲軟繼續影響家具、木工和地板的需求，工業木材銷量增長了不到 1%。卷材銷量下降了中個位數，主要是受到歐洲的推動，歐洲受到去年俄羅斯退出的影響，而同期下降了近 40%。

Packaging sales were also down low double digits against a 20%-plus comp. We anticipated this decline given the near-term destocking by brand owners that we described on our last call. We continue to feel very good about our position and growth prospects in this end market.

與 20% 以上的同期相比，包裝銷售額也下降了兩位數。鑑於我們在上次電話會議中描述的品牌所有者近期去庫存的情況，我們預計會出現這種下降。我們仍然對我們在這個終端市場的地位和增長前景感到非常滿意。

With that, let me turn it to John for his comments on our outlook for the third quarter and the full year.

接下來，讓我請約翰談談他對我們第三季度和全年前景的評論。

Thank you, Heidi. As we said in January, we expected to have a strong first half of the year. Our team exceeded those expectations, and I want to thank all 64,000 of our employees for their relentless focus on serving our customers and for driving continuous improvement across the organization.

謝謝你，海蒂。正如我們在一月份所說的，我們預計今年上半年將會表現強勁。我們的團隊超出了這些預期，我要感謝我們所有 64,000 名員工對服務客戶的不懈專注以及推動整個組織的持續改進。

We also understand that a good first half does not make a good year. We know we have work to do, and that's exactly where we are focused. On our April call, we said we would have a much better idea of how the year might unfold as we got deeper into the painting season. Here's what we're seeing as we begin the second half along with our plans for seizing the opportunities in front of us.

我們也明白，上半年的好並不等於今年的好。我們知道我們還有工作要做，而這正是我們關注的重點。在四月份的電話會議上，我們表示，隨著繪畫季節的深入，我們會對這一年的發展有更好的了解。以下是我們在下半年開始時所看到的情況以及我們抓住面前機會的計劃。

In Paint Stores Group, we're facing a strong comparison to the second half a year ago, where sales were up 19%. We see customer backlogs as being solid in commercial, property maintenance and protective & marine throughout the second half, and we expect to deliver very solid strong growth in these end markets.

在 Paint Stores Group，我們面臨著與去年下半年相比的強勁對比，當時的銷售額增長了 19%。我們認為整個下半年商業、物業維護以及防護和海事領域的客戶積壓情況穩定，我們預計在這些終端市場將實現非常穩健的強勁增長。

Residential repaint should also be good for us as based on contractor feedback, though visibility here is only about 6 to 8 weeks and existing home sales are likely to remain weak. There's some recent optimism from new residential homebuilders regarding starts, but it won't be enough to move the needle meaningfully for us in 2023. We are more tied to completions, which are slowing. While we are confident we are growing share, we expect new residential volume will be challenging for us in the second half, though the year will likely come in closer to down high single digits compared to the down 10% to 20% full year range we provided in January.

根據承包商的反饋，住宅重新粉刷也應該對我們有利，儘管這裡的可見性只有大約 6 到 8 週，而且現有房屋銷售可能仍然疲弱。最近，新住宅建築商對開工持樂觀態度，但這還不足以在 2023 年對我們產生有意義的推動。我們更關注竣工進度，而竣工進度正在放緩。雖然我們對份額的增長充滿信心，但我們預計下半年新住宅量將面臨挑戰，儘管與我們全年下降 10% 至 20% 的範圍相比，今年可能會接近高個位數下降。一月份提供。

In DIY, double-digit growth in the first half was aided by softer comparisons to the prior year, where supply chain headwinds impacted our sales. We do not expect this pace of growth to continue as comparisons become much more difficult in the second half of the year. In Consumer Brands, North America DIY demand remained soft. Europe demand has stabilized and Latin America markets remain mixed. In Performance Coatings, many of our customers continue to report a high level of uncertainty regarding demand.

在 DIY 領域，上半年的兩位數增長得益於與上年相比的疲軟，供應鏈不利因素影響了我們的銷售。我們預計這種增長速度不會持續下去，因為下半年比較變得更加困難。在消費品牌方面，北美 DIY 需求依然疲軟。歐洲需求已經穩定，拉丁美洲市場依然喜憂參半。在高性能塗料領域，我們的許多客戶繼續報告需求存在高度不確定性。

Auto Refinish demand remains an exception and is solid in most regions with shortages in parts and technicians increasing CHOP backlogs. Installations of our systems in North America are up strong double digits year-to-date. This continues to bode well for future sales in this business.

汽車修補漆的需求仍然是一個例外，並且在大多數地區都很穩定，零件和技術人員的短缺增加了 CHOP 積壓。今年迄今為止，我們的系統在北美的安裝量增長了兩位數。這對於該業務的未來銷售來說仍然是一個好兆頭。

General industrial end markets are choppy with North American customers reporting mixed demand by end markets served. Industrial wood demand remains soft, though some positive signs in new residential construction indicate we may have reached the bottom. In Coil, demand is holding up better in the Americas versus Europe and Asia. And finally, in packaging, customers are returning to just in time versus just in case supply chain management, resulting in destocking that we expect will continue in the second half. The longer-term view here is still very robust with customers already committed to fill the additional capacity we're bringing on this year.

一般工業終端市場波動較大，北美客戶報告所服務的終端市場需求參差不齊。儘管新住宅建設的一些積極跡象表明我們可能已觸底，但工業木材需求仍然疲軟。在卷材方面，美洲的需求比歐洲和亞洲的需求保持得更好。最後，在包裝方面，客戶正在回歸及時供應鏈管理，而不是以防萬一供應鏈管理，導致我們預計下半年將繼續減少庫存。長期前景仍然非常強勁，客戶已經承諾填補我們今年新增的產能。

Let me be very clear on our expectations here. We do not accept the excuse that markets are soft, and therefore, our opportunities are limited. Our job is not to report conditions, but to influence results. We know we cannot defy gravity in terms of the macro environment. But in every business, we are aggressively pursuing new accounts and share of wallet opportunities to drive market share gains.

讓我非常明確地表達我們的期望。我們不接受市場疲軟的藉口，因此我們的機會有限。我們的工作不是報告情況，而是影響結果。我們知道，就宏觀環境而言，我們無法抗拒地心引力。但在每項業務中，我們都在積極尋求新賬戶和錢包份額機會，以推動市場份額的增長。

Moving to the cost side. We are revising our raw material outlook. We now expect costs to be down by mid- to high single-digit percentage in 2023 compared to 2022. We expect to see decreases across several commodity categories, though the ranges likely will vary widely. We expect other costs, including wages and other input costs to be up in the mid- to high single-digit range.

轉向成本方面。我們正在修改我們的原材料前景。我們現在預計，與 2022 年相比，2023 年成本將下降中高個位數百分比。我們預計多個商品類別的成本都會下降，儘管幅度可能會有很大差異。我們預計其他成本，包括工資和其他投入成本將在中高個位數範圍內上漲。

Compared to the guidance we laid out in January, full year sales growth and raw material costs are trending better than we anticipated. With this first half outperformance we expect considerable year-over-year operating margin expansion and earnings growth for the year. At the same time, these dynamics also afford us the opportunity to accelerate growth and service investments at a higher level than anticipated at the beginning of the year. As a result of these disciplined and enterprise-wide investments, which will drive our customers' continued success.

與我們一月份制定的指引相比，全年銷售增長和原材料成本的趨勢好於我們的預期。鑑於上半年的優異表現，我們預計今年的營業利潤率和盈利將實現大幅同比增長。與此同時，這些動態也為我們提供了加速增長和服務投資的機會，其水平高於年初的預期。這些嚴格的企業範圍投資的結果將推動我們的客戶持續取得成功。

We now expect the year-over-year increase in SG&A to be in the high single-digit to low double-digit range for the full year. As in the past, we are highly confident in our ability to drive future above-market growth, and our returns will justify the actions we are taking now.

我們現在預計全年銷售管理及行政費用的同比增幅將在高個位數到低兩位數的範圍內。與過去一樣，我們對推動未來高於市場增長的能力充滿信心，我們的回報將證明我們現在採取的行動是合理的。

Now moving on to our specific guidance. We anticipate our third quarter 2023 consolidated net sales will be up or down a low single-digit percentage compared to the third quarter of 2022, with volume down low to mid-single digits. For the full year 2023, we expect consolidated net sales to be up a low single-digit percentage with a volume down a low single-digit percentage.

現在繼續我們的具體指導。我們預計，與 2022 年第三季度相比，2023 年第三季度的合併淨銷售額將出現低個位數百分比的上升或下降，銷量將下降至低個位數至中個位數。對於 2023 年全年，我們預計合併淨銷售額將出現低個位數百分比增長，而銷量將出現低個位數百分比下降。

Our sales expectations by segment for the third quarter and the full year are included in the slide deck issued with our press release this morning. We are increasing our full year 2023 diluted net income per share to be in the range of $8.46 to $8.86 per share. We believe this increased range accurately reflects our first half outperformance, continued pricing discipline and moderating raw material costs while also acknowledging the ongoing uncertainty in the second half demand environment. This guidance includes acquisition-related amortization expense of approximately $0.81 per share. It also includes net expense related to our previously announced targeted restructuring actions of $0.03 per share.

我們對第三季度和全年各細分市場的銷售預期包含在今天上午新聞稿中發布的幻燈片中。我們將 2023 年全年稀釋後每股淨利潤提高至每股 8.46 美元至 8.86 美元。我們相信，這一增幅準確地反映了我們上半年的優異表現、持續的定價紀律和原材料成本的下降，同時也承認下半年需求環境持續存在的不確定性。該指導包括每股約 0.81 美元的收購相關攤銷費用。它還包括與我們之前宣布的每股 0.03 美元目標重組行動相關的淨費用。

On an adjusted basis, we expect full year 2023 earnings per share in the range of $9.30 to $9.70. This is an increase of 14.5% at the midpoint compared to our prior adjusted guidance of $7.95 to $8.65 per share. We provided a GAAP reconciliation in the Reg G table within our press release.

在調整後的基礎上，我們預計 2023 年全年每股收益將在 9.30 美元至 9.70 美元之間。與我們之前調整後的每股 7.95 美元至 8.65 美元的指引相比，中點增長了 14.5%。我們在新聞稿中的 Reg G 表中提供了 GAAP 調節表。

Our slide deck includes additional information on our updated assumptions for the year, along with guidance on our expectations for currency exchange, effective tax rate, CapEx, depreciation and amortization and interest expense. We've also provided an update on our previously announced restructuring efforts. Onetime costs will be lower than previously anticipated. The estimated annual savings from our actions are unchanged.

我們的幻燈片包括有關我們今年更新的假設的更多信息，以及我們對貨幣兌換、有效稅率、資本支出、折舊和攤銷以及利息費用的預期的指導。我們還提供了之前宣布的重組工作的最新情況。一次性成本將低於之前的預期。我們的行動預計每年節省的費用沒有變化。

As we begin the second half, we'll remain focused on what we can control. Across the business, this means growing new accounts and share of wallet. It also means developing and retaining talent, improving and simplifying our operations and managing price cost dynamics. We remain confident in our differentiated strategy, our capabilities in our product and service solutions. Should the demand environment prove to be better than we are currently assuming, we would expect to deliver better results. What we can't control is the market.

當我們開始下半場時，我們將繼續專注於我們可以控制的事情。在整個企業中，這意味著增加新賬戶和錢包份額。它還意味著開發和留住人才、改進和簡化我們的運營以及管理價格成本動態。我們對我們的差異化戰略、我們的產品和服務解決方案的能力充滿信心。如果事實證明需求環境比我們目前的假設更好，我們預計會取得更好的結果。我們無法控制的是市場。

We're not interested in trying to time the economic recovery. What we are interested in is taking full advantage of it when it eventually arrives. This means investing in our growth now ahead of the curve. This approach has served our customers and our shareholders well over multiple past cycles. I have every confidence that it will do so once again. Above all, I have the utmost confidence in our leadership team and our people. They are the true differentiators. Together, we expect to continue outperforming our competitors and the market. This concludes our prepared remarks.

我們對嘗試確定經濟復甦的時間不感興趣。我們感興趣的是當它最終到來時充分利用它。這意味著我們現在要提前投資於我們的增長。這種方法在過去的多個週期中為我們的客戶和股東提供了良好的服務。我完全有信心它會再次這樣做。最重要的是，我對我們的領導團隊和員工充滿信心。他們是真正的差異化因素。我們期望共同繼續超越我們的競爭對手和市場。我們準備好的發言到此結束。

And with that, I'd like to thank you for joining us this morning, and we'll be happy to take your questions.

在此，我要感謝您今天早上加入我們，我們很樂意回答您的問題。

(Operator Instructions) Your first question is coming from Greg Melich from Evercore ISI.

（操作員說明）您的第一個問題來自 Evercore ISI 的 Greg Melich。

Congrats guys on a great quarter. I'd love to go a little bit into that, the deceleration that you still expect into the third quarter. I think it sounds like volume total sales are kind of flattish, that we would expect volume to be down kind of low to mid-singles? And maybe give us a little more color on why you expect that deceleration in what you're seeing.

恭喜伙計們度過了一個出色的季度。我很想談談您仍然期望第三季度出現的減速。我認為聽起來銷量總銷量有點持平，我們預計銷量會下降到中低單曲？也許還可以讓我們更多地了解一下為什麼您預計您所看到的情況會出現減速。

Greg, I think it's a great question. I think if you look across our entire enterprise right now, I would just qualify this or characterize this as choppy. I think that's true both by division, by region. When you break it down, our volume is down low to mid-single digits. If you look at Paint Stores Group alone down low single digits. I would say that's primarily due to the new residential slowdown but confident in the increasing starts that we're seeing.

格雷格，我認為這是一個很好的問題。我認為，如果你現在縱觀我們整個企業，我只會對此進行限定或將其描述為不穩定。我認為無論是按部門還是按地區來說都是如此。當你細分時，我們的交易量已降至中個位數。如果你單獨看看油漆商店集團，其股價就下降了個位數。我想說，這主要是由於新的住宅市場放緩，但對我們看到的開工量增加充滿信心。

Remember, that's against a really tough comp of 19%. That's a bit offset by some of the heavy impact that we're seeing with both PCG and CBG, but I'm confident in our ability to drive above market growth here.

請記住，這是針對 19% 的非常艱難的比較。這被我們看到的 PCG 和 CBG 的一些嚴重影響所抵消，但我對我們推動高於市場增長的能力充滿信心。

Got it. And I guess my second question is on getting back to those that margin range, the 46% gross margin. Could you remind us of the range you were targeting? And is there a potential to be above that in the cycle, given that it sounds like at least the pricing environment is remaining quite rational.

知道了。我想我的第二個問題是回到利潤率範圍，即 46% 的毛利率。您能提醒我們您的目標範圍嗎？鑑於聽起來至少定價環境仍然相當理性，是否有可能在周期中高於這一水平。

Yes, Greg, this is Al Mistysyn. And we're really pleased with the performance of our gross margin. As a reminder, our target is midterm, 45% to 48%. As we have talked about in the past, we -- in our raw material inflationary environment, we put price in to offset those dollars. And then as raw materials moderate, we start seeing the benefit of that pricing to increase our gross margin and helps us cover the continued investments we make to help our customers drive value in their business.

是的，格雷格，我是阿爾·米斯蒂森。我們對毛利率的表現非常滿意。提醒一下，我們的目標是中期，45% 到 48%。正如我們過去談到的，在原材料通脹的環境中，我們通過價格來抵消這些美元。然後，隨著原材料的溫和增長，我們開始看到定價的好處，可以提高我們的毛利率，並幫助我們進行持續投資，以幫助我們的客戶推動其業務價值。

So I'd expect the sequential gross margin to be similar to what I saw in this -- what we saw in the second quarter. Price, as you know, we'll start annualizing the price increases in our third quarter, specifically the September 10% in Paint Stores Group plus the other items, other segments that have put pricing in. So for the full year, I think our gross margin, depending on where Paint Stores Group volume is could be in that 45% to 46% range. And then as you know, we'll evaluate that 45% to 48% range over time. And as we get consistency in that range, look to raise the bar and move that target up.

因此，我預計連續毛利率將與我在第二季度看到的類似。價格，如您所知，我們將開始對第三季度的價格上漲進行年度化，特別是油​​漆商店集團的 9 月 10% 加上其他項目、其他已定價的細分市場。因此，對於全年而言，我認為我們的毛利率可能在 45% 到 46% 的範圍內，具體取決於 Paint Stores Group 的銷量。然後如您所知，我們將隨著時間的推移評估 45% 到 48% 的範圍。當我們在這個範圍內保持一致時，我們就會提高標準並提高目標。

Yes. So I'd say we refer to that as our current range. And I'd say in addition to every point that Al just made, the additional steps that we're taking on a regular basis and reviewing the programs that we have, the investments that we're making, the mix of our products, everything that we're doing goes into driving that margin.

是的。所以我想說我們將其稱為我們當前的範圍。我想說的是，除了艾爾剛才提出的每一點之外，我們還定期採取額外措施，審查我們現有的計劃、我們正在進行的投資、我們產品的組合等等。我們正在做的事情是為了提高利潤率。

It's not simply just a price. There's a lot of activity on the operations side to drive inefficiency. We talked last year about some of the inefficiencies as we serve our customers, we were shipping product from 1 point in the country into the other. And so as we continue to optimize our supply chain we expect to continue to drive that as well.

這不僅僅是一個價格那麼簡單。運營方面的大量活動導致效率低下。去年我們談到了我們為客戶服務時的一些低效率問題，我們將產品從該國的一個地點運送到另一個地點。因此，當我們繼續優化我們的供應鏈時，我們希望繼續推動這一點。

And it sounds like even with the lower raw material expectation for this year, your pricing expectations are unchanged. Is that fair?

聽起來即使今年原材料預期較低，您的定價預期也沒有改變。這公平嗎？

Yes, that's correct. As we continue to invest in our business and bring more value to our customers, we'll invest into that and drive their profitability. And naturally, we'd expect that our shareholders participate in that as well.

對，那是正確的。隨著我們繼續投資我們的業務並為客戶帶來更多價值，我們將對此進行投資並提高他們的盈利能力。當然，我們希望我們的股東也參與其中。

Your next question is coming from Vincent Andrews from Morgan Stanley.

你們的下一個問題來自摩根士丹利的文森特·安德魯斯。

I got 2 questions on SG&A. I guess, first, if you could just help us understand -- I know we've talked about this in the past, but the incremental spending for this year, what details can you give us in terms of what it targets?

我有 2 個關於 SG&A 的問題。我想，首先，如果你能幫助我們理解——我知道我們過去已經討論過這個問題，但是今年的增量支出，你能給我們提供哪些關於其目標的細節嗎？

And then secondly, should the back half of the year play out better than you forecast. Do you have more SG&A activities that you could get into in the back half of the year than you're already guiding to? Or is this SG&A guidance done for the year?

其次，今年下半年的表現是否會比您預測的更好。下半年您是否可以開展比您已經指導的更多的 SG&A 活動？或者本年度的 SG&A 指導是否已完成？

Yes, Vincent, let me kick it off kind of my thinking on it and then I'll ask Al to get into some of the details. First, we are going to adjust our investments to market conditions. And these are things that we monitor closely. We reminded the trends in the market, as you just mentioned, activities and opportunities, cost, even the activities of our competitors.

是的，文森特，讓我開始思考一下，然後我會請艾爾了解一些細節。首先，我們將根據市場情況調整投資。這些都是我們密切關注的事情。正如您剛才提到的，我們提醒了市場的趨勢，活動和機會，成本，甚至我們競爭對手的活動。

And we've seen this before. We'll capitalize on the market opportunities, the competitive shifts and missteps that our competitors make, these are all opportunities. So to your point, as we see raw material trends and these are part of our data set, all roll into what you should expect to see from Sherwin-Williams. We're going to be aggressive. We're going to drive market share and invest in our businesses. And I think it comes down to when you have confidence in your strategy and confidence in your leadership team like we do, you can invest. And while others are adjusting their strategies, we're going to take advantage of any shifts. We will be on the attack.

我們以前見過這個。我們將利用市場機會、競爭對手的競爭變化和失誤，這些都是機會。因此，就您的觀點而言，當我們看到原材料趨勢並且這些是我們數據集的一部分時，所有這些都包含在您應該從宣偉公司看到的內容中。我們將採取積極進取的態度。我們將提高市場份額並投資於我們的業務。我認為這取決於當你像我們一樣對自己的戰略和領導團隊有信心時，你就可以投資。當其他人正在調整策略時，我們將利用任何轉變。我們將發起進攻。

As you know, we're all about managing operating margin growth and operating margin growth over the long term. So your comment about will we be done with SG&A commentary as the second half goes on. I would say, no. I think as we see how the demand environment and volumes unfold and as they're at or above our expectations, we'll look at that. We'll look at gross margin performance in the second half.

如您所知，我們致力於管理營業利潤率增長和長期營業利潤率增長。因此，您關於我們是否會在下半年繼續進行 SG&A 評論時發表評論。我會說，不。我認為，當我們看到需求環境和數量如何發展以及它們達到或高於我們的預期時，我們會考慮這一點。我們將關注下半年的毛利率表現。

And the beautiful thing about our model is we can be very agile across each of the segments, both field sales and tech service reps with the Pro Paint within the Consumer Brands Group. So if we see a path of a higher gross margin than what we have in our current outlook, we'll look to put more investments in our long-term growth initiatives to drive higher share as the market returns.

我們的模式的美妙之處在於，我們可以在消費品牌集團內的 Pro Paint 的幫助下，在每個細分市場（包括現場銷售和技術服務代表）中保持高度敏捷。因此，如果我們看到毛利率高於當前前景，我們將尋求對長期增長計劃進行更多投資，以隨著市場回報推動更高的份額。

Your next question is coming from John McNulty from BMO.

您的下一個問題來自蒙特利爾銀行 (BMO) 的約翰·麥克納爾蒂 (John McNulty)。

So in the Paint Stores Group, you had been looking for kind of a flattish guide. Now you're looking for up mid- to high single digits. When you look at the major subsegments of that group. I guess where are you surprised the most? Where are things kind of working out better than you expected?

因此，在油漆店集團中，您一直在尋找一種扁平化的指南。現在您正在尋找中高個位數。當你查看該組的主要子部分時。我想你最驚訝的地方在哪裡？哪些方面的進展比您預期的要好？

So let me start with New Residential because I think that's an important piece. And maybe what we'll do here, John, is I'll start with New Residential, maybe talk about Commercial and then I'll ask Heidi to talk about some additional segments because to be truthful with you, we're very pleased with the execution of our team. We talk a lot about our secret weapon. And we talked about the recruitment and retention of this team. They are truly executing. We couldn't be any more proud.

讓我從新住宅開始，因為我認為這是一個重要的部分。約翰，也許我們在這裡要做的是，我將從新住宅開始，也許談論商業，然後我會請海蒂談論一些其他部分，因為說實話，我們非常滿意我們團隊的執行力。我們經常談論我們的秘密武器。我們討論了這個團隊的招募和保留。他們是真正的執行者。我們感到無比自豪。

In new residential, I think it's clear to all of us, there's pressure in the new residential space. Our flat sales in this quarter, I believe, are indicative of the share gains we're executing. We talked about penetrating that top 100 builders for the last couple of quarters. And quite honestly, we're working on that, and we're experiencing terrific success, in fact, even deeper into some of the more custom homebuilders as well. It's growing, and we expect to continue to grow there. We continue to execute on our strategy of bringing solutions to these builders to make them more successful. And I think that's the key and core behind everything we do. So in the builders area, the efficiency that we're bringing in our supply chain to help them in innovation, quality, consistency, even as they're adapting into different substrates to help defray costs.

在新住宅方面，我想我們所有人都清楚，新住宅空間存在壓力。我相信，本季度我們的銷售額持平，這表明我們正在執行份額增長。我們討論了過去幾個季度滲透到前 100 名建築商的情況。老實說，我們正在努力解決這個問題，事實上，我們正​​在取得巨大的成功，甚至更深入地了解一些更定制的住宅建築商。它正在增長，我們期望在那裡繼續增長。我們繼續執行我們的戰略，為這些建築商提供解決方案，使他們更加成功。我認為這是我們所做一切背後的關鍵和核心。因此，在建築商領域，我們在供應鏈中引入效率，以幫助他們實現創新、質量和一致性，即使他們正在適應不同的基材以幫助支付成本。

We're working with them to ensure that we have the right coatings for them. Importantly, I just talked about our people. I think our stores and our reps in this area -- they're doing a fantastic job of staying close and in contact with not only our builders, but their applicators, which is very unique. And we've got a distribution platform that wherever our builders are building, whatever developments they're pursuing, our stores are where they are building and where they might want to build. So we're not out there promising if you will invest here, we'll invest with you. Our people are there and our assets are there, and we're capitalizing on that. So we're growing share.

我們正在與他們合作，以確保我們為他們提供合適的塗層。重要的是，我剛剛談到了我們的員工。我認為我們的商店和我們在這一領域的代表 - 他們做得非常出色，不僅與我們的建築商保持密切聯繫，而且與他們的施工人員保持密切聯繫，這是非常獨特的。我們擁有一個分銷平台，無論我們的建築商在哪裡建造，無論他們追求什麼開發，我們的商店都在他們正在建造的地方以及他們可能想要建造的地方。因此，我們不會承諾如果您願意在這裡投資，我們就會與您一起投資。我們的員工在那裡，我們的資產在那裡，我們正在利用這些。所以我們的份額正在增長。

We've not experienced the depth of decline, as you mentioned, we originally projected. Although I would say we do expect to see softness in the second half. You talked about our strategy here and our commitment to favorably position the company, and we think this segment absolutely demonstrates that. In the commercial side, I'd say we're experiencing very good performance. And again, I think it highlights the advantages of our controlled distribution. We expect the balance of 2023 to be strong. We're really focused on the subsegments inside commercial going forward. So again, really leveraging the value of this controlled distribution model. Our reps and our specification teams are really dialing into those areas that provide opportunity.

正如您提到的，我們最初預計，我們並沒有經歷過嚴重的衰退。儘管我想說，我們確實預計下半年會出現疲軟。您在這裡談到了我們的戰略以及我們對公司有利定位的承諾，我們認為這個部分絕對證明了這一點。在商業方面，我想說我們的表現非常好。我認為這再次凸顯了我們受控分銷的優勢。我們預計 2023 年的平衡將會強勁。我們真正關注未來商業領域的細分市場。再說一次，真正利用這種受控分配模型的價值。我們的代表和規範團隊正在真正深入那些提供機會的領域。

And even within those areas that might be strong now that could dry up even in those areas. We know that there will be opportunities could be in tenant build-out or wherever in commercial, it might shift we're going to be there. So again, our focus on applicators, the specifiers and the owners, we believe, will pay off for us. Res repaint is another area that I think is really important to talk about. Let me turn it over to Heidi.

即使在那些現在可能很強大的地區，也可能會乾涸。我們知道，租戶擴建或商業領域的任何地方都可能存在機會，這可能會改變我們的發展方向。因此，我們相信，我們對塗抹者、指定者和所有者的關注將為我們帶來回報。資源重繪是我認為非常重要的另一個領域。讓我把它交給海蒂。

Yes. And as you know, we've had 7 years of double-digit growth here in this segment, and we're confident in our execution. But it's important to know that we're never complacent and doing what we know how to do, we believe we'll take share, especially in this environment. While it's currently positive, we know a slowdown is coming, and it's also being tempered by, as we mentioned in our prepared remarks, by the extended period of week existing homes.

是的。如您所知，我們在這一領域已經連續 7 年實現兩位數增長，我們對我們的執行力充滿信心。但重要的是要知道，我們永遠不會自滿，並做我們知道如何做的事情，我們相信我們會分享份額，尤其是在這種環境下。雖然目前的情況是積極的，但我們知道經濟放緩即將到來，而且正如我們在準備好的講話中提到的那樣，現有房屋的周期延長也會對其有所緩和。

So having said that, even in that challenging environment, paint will continue to outperform other categories since it is an inexpensive and highly impactful category. There's been a lot of speculation about next year, and I will tell you that the bidding activity has somewhat normalized. And believe it or not, these are actually very good times for Sherwin-Williams, where we believe that adversity brings about opportunity for us.

話雖如此，即使在充滿挑戰的環境中，油漆仍將繼續優於其他類別，因為它是一種廉價且極具影響力的類別。關於明年有很多猜測，我會告訴你，競標活動已經有點正常化了。不管你相信與否，對於宣偉來說，現在實際上是非常美好的時光，我們相信逆境會給我們帶來機遇。

In a large part, our controlled model, as many of us talked about previously, this allows us to dig deeper and not just trying to sell our contractors product, but really taking the time to intersect them where they are in their business and helping them to focus on growth and profitability.

在很大程度上，我們的受控模型，正如我們許多人之前談到的，這使我們能夠更深入地挖掘，而不僅僅是試圖銷售我們的承包商產品，而是真正花時間與他們的業務相交並幫助他們專注於增長和盈利能力。

We have a lot of data that we've talked about in the past, but I think, and we won't get into specifics or details here. But it's important that as the team is working hard, John mentioned the talent in the frontline here, mining this data for opportunity and getting very surgical in addition to the data leveraging our rep force so that we can be very thoughtful as we approach these contractors and making sure that we're taking advantage of the talent that we've got out there. So we're currently focused on building these relationships and confident that we'll continue to see some aggressive share gains here. I'll hit briefly on the DIY relative to stores.

我們過去討論過很多數據，但我認為，我們不會在這裡討論具體細節。但重要的是，隨著團隊的努力工作，約翰在這裡提到了前線的人才，挖掘這些數據以尋找機會，除了利用我們的代表力量的數據之外，還進行非常手術，以便我們在接觸這些承包商時可以非常周到並確保我們能夠充分利用我們所擁有的人才。因此，我們目前專注於建立這些關係，並相信我們將繼續看到這裡的一些積極的份額增長。我將簡單談談與商店相關的 DIY。

And I think, John, your question was specific to stores. Sales were up double digits in Q2 against a fairly soft comp. We don't expect this to continue at this pace, but we'll note that there's been some very positive foot traffic in our stores relative to the segment. And with that, maybe just a brief touch on P&L.

我認為，約翰，你的問題是針對商店的。與相當疲軟的競爭對手相比，第二季度的銷售額增長了兩位數。我們預計這種情況不會以這種速度持續下去，但我們會注意到，相對於該細分市場，我們商店的人流量非常積極。至此，也許只是簡單介紹一下損益表。

Well, property maintenance, I think, is another area that performed a little bit better than we expected. And we have a lot of confidence here. A lot of the delayed maintenance we believe now is being addressed. Apartment turnovers are strong and bodes well for us. And again, I think even the idea of return to travel, office and school all help. And as we leverage a national platform of just up stores and reps to be able to really capture that business as well. So it's a good business for us and 1 that performed better as well.

嗯，我認為，物業維護是另一個表現比我們預期好一點的領域。我們對此充滿信心。我們相信許多延遲維護現在正在得到解決。公寓成交量強勁，對我們來說是個好兆頭。再說一次，我認為即使是重返旅行、辦公室和學校的想法也會有幫助。當我們利用由剛剛增加的商店和代表組成的全國性平台時，也能夠真正捕獲該業務。因此，這對我們來說是一項很好的業務，而且表現也更好。

Protective & marine was another area that in our stores that performed stronger than I would say we expected. I'll say that here, not to our team. We expect more from our team would be the answer I'd give them. Our core business was very strong, double-digit growth. But we've been investing in this business, and our expectations are high of this team. We've got terrific leaders in this area, and we've been making investments in areas.

防護和海洋是我們商店中表現強於我預期的另一個領域。我會在這裡說，而不是對我們的團隊說。我們希望我們的團隊能夠給出更多的答案。我們的核心業務非常強勁，實現了兩位數的增長。但我們一直在投資這項業務，我們對這個團隊的期望很高。我們在這個領域擁有出色的領導者，並且我們一直在這些領域進行投資。

We've announced a number of acquisitions, for example, in flooring. That's helped us get into some really key opportunities in food and beverage, pharma, even airport hangers, all have been very strong. Energy has been very strong for us. It's another great example where we focus on everything from extraction to processing as well as alternative energy.

我們已經宣布了多項收購，例如地板領域的收購。這幫助我們在食品和飲料、製藥、甚至機場機庫等領域獲得了一些真正關鍵的機會，所有這些都非常強勁。能源對我們來說非常強大。這是另一個很好的例子，我們專注於從提取到加工以及替代能源的一切。

Government activity here is trying to stimulate has been good for us as well. We see business in the area of mega plants for chips that have been good for us. as well as I mentioned, alternative energy, where we really have done a very nice job of bringing technology from all aspects. We're taking into wind farms, for example, there's 1 that's been promoted in the Northeast. It's going to be a terrific opportunity to bring our marine coatings as well as our heavy-duty petrochem technology to bear in a very unique way. So we're bringing technology. We're bringing a strength of a distribution platform, specifications and it's driving business that the business is very strong.

政府試圖刺激的活動對我們也有好處。我們看到大型芯片工廠領域的業務對我們有利。正如我提到的，替代能源，我們在從各個方面引入技術方面確實做得非常出色。我們正在考慮風電場，比如東北有一個正在推廣的風電場。這將是一個絕佳的機會，可以以一種非常獨特的方式運用我們的船舶塗料以及重型石化技術。所以我們帶來了技術。我們帶來了分銷平台、規格的優勢，並且業務非常強勁，這推動了業務的發展。

And just 1 piece I would add to that, John mentioned recent acquisition in flooring. I think that really is a great illustration of how we're looking at this as a broader portfolio of both technologies and services that we're bringing together in terms of our value proposition.

我想補充一點，約翰提到了最近收購的地板。我認為這確實很好地說明了我們如何將其視為更廣泛的技術和服務組合，我們根據我們的價值主張將其整合在一起。

But if I look specifically at something like the battery plants for semiconductors. We're not just excited for those projects, but candidly, for the infrastructure that will eventually surround those projects as well. So we feel we're very uniquely positioned to take advantage of that wave.

但如果我專門關注半導體電池廠之類的東西。我們不僅對這些項目感到興奮，而且坦率地說，我們也對最終圍繞這些項目的基礎設施感到興奮。因此，我們認為我們處於非常獨特的位置，可以利用這一浪潮。

Your next question is coming from Christopher Parkinson from Mizuho.

你們的下一個問題來自瑞穗銀行的克里斯托弗·帕金森。

I was just hoping to get a little bit more color on your longer-term thoughts on PCG margins, just given the competitive dynamics in each of their respective end markets, obviously, ongoing price cost. I mean I think it's safe to say it's significantly better than we thought, at least for the quarter. But going to that kind of unofficial 20% marker. I'm assuming you're feeling pretty good about that. But if you could just give an update on the longer-term thoughts there would be very helpful.

我只是希望能更深入地了解您對 PCG 利潤率的長期看法，考慮到各自終端市場的競爭動態，顯然還有持續的價格成本。我的意思是，我認為可以肯定地說，這比我們想像的要好得多，至少在本季度是這樣。但要達到那種非官方的 20% 標記。我猜你對此感覺很好。但如果您能提供有關長期想法的最新信息，那將會非常有幫助。

Yes, Chris, thanks for your question. I'll start and kick it to Al. You're right. We do feel very good, very proud of Karl Jorgenrud and his entire team. That leadership team is really focused on doing this the right way. So the solutions that we're bringing to our customers and the focus and discipline that we're bringing is part of the strategy we keep repeating. And as we do that, we bring value to our customers and we've been successful.

是的，克里斯，謝謝你的問題。我會開始並把它踢給艾爾。你說得對。我們確實感覺非常好，為卡爾·喬根魯德和他的整個團隊感到非常自豪。該領導團隊確實專注於以正確的方式做到這一點。因此，我們為客戶提供的解決方案以及我們提供的重點和紀律是我們不斷重複的戰略的一部分。當我們這樣做時，我們為客戶帶來了價值，並且我們取得了成功。

The discipline in that is that if not every gallon is necessarily a good gallon for us as a result. We're focused on key segments, key customers. We're trying to introduce technology and services that help them to make more money. And again, as a result, we believe that our shareholders should participate in that. But the push is to make our customers successful and have discipline doing that. And that's exactly what the PCG team is doing.

其中的原則是，即使不是每一加侖對我們來說都一定是好加侖。我們專注於關鍵細分市場、關鍵客戶。我們正在努力引入技術和服務來幫助他們賺更多的錢。因此，我們再次相信我們的股東應該參與其中。但我們的動力是讓我們的客戶取得成功，並遵守紀律。這正是 PCG 團隊正在做的事情。

Yes, Chris, I think the takeaway that I'd leave you with is, as we've progressed through 2022 and into 2023, you start seeing consistency in that segment operating margin in either at the bottom of the range or in the range and a couple of additional points. One, they've got the discipline to get price.

是的，克里斯，我想留給您的結論是，隨著 2022 年和 2023 年的進展，您開始看到該細分市場的營業利潤率在範圍底部或範圍內保持一致，並且還有幾點。第一，他們有獲取價格的紀律。

And when you look at the last 2 years, '21 and '22, they took the front of the 40% increase in raw material costs, and they were able to get price while still driving volume. And when we look at the acquisitions that were made last year, and the integration activities and the synergies that the team is working on. We feel very good about coming out of this year with the operating margins of those acquisitions being accretive to PCG.

當你看看過去兩年，21 年和 22 年，他們在原材料成本增加 40% 的情況下走在了前面，他們能夠在提高價格的同時仍然推動銷量。當我們看看去年進行的收購、整合活動以及團隊正在進行的協同作用時。我們對今年的業績感到非常滿意，因為這些收購增加了 PCG 的營業利潤。

And then they're also focused on a number of other initiatives, whether it's SKU rationalization, simplification to make operations more efficient that can better serve their customer at a higher level. So I think you put those things together, and that team is on a strong trajectory to hit that 20% target. And then we'll ask for more from there.

然後他們還專注於許多其他舉措，無論是 SKU 合理化、簡化，以提高運營效率，從而更好地在更高水平上為客戶服務。因此，我認為將這些因素放在一起，該團隊就有望實現 20% 的目標。然後我們會從那裡要求更多。

Got it. And just a very quick follow-up, and also, quite frankly, a corollary of what you just said. I don't get to have myself with the next remark, but it seems things are generally progressing a little bit better than expected. Obviously, that's reflected in the guidance range and so on and so forth. When we take a step back and you look at your portfolio, obviously, you've taken a few extra actions of the last 12 to 18 months in both divesting as well as acquiring.

知道了。這只是一個非常快速的後續行動，而且坦率地說，這是您剛才所說的必然結果。我無法發表下一句話，但事情似乎總體進展比預期要好一些。顯然，這反映在指導範圍等方面。當我們退後一步，看看您的投資組合時，顯然，您在過去 12 到 18 個月中在剝離和收購方面採取了一些額外的行動。

Can you just give kind of a very quick update on where you stand with that thought process? Are there any technologies which you still feel you're focusing on? Are there still assets which you would consider divesting? Just given the actions over the last, quite frankly, 5-plus years? Any update there would be very helpful.

您能否快速介紹一下您在這一思考過程中的立場？有哪些技術是您仍然關注的？您是否還有考慮剝離的資產？坦率地說，僅考慮過去五年多來的行動？那裡的任何更新都會非常有幫助。

Chris, we've done 20 transactions since announcing Valspar, 16 were acquisitions and 6 were divestitures. What we're focused on is and where we want to grow our those areas that we can bring value, that we would be rewarded for bringing solutions to our customers. And we take a hard and disciplined look in other areas. So we've divested -- the Valspar wood divestiture was required by the FTC. We divested Guardsman, which came with Valspar, Wade in Australia, which came with Valspar. We've announced the Huarun in China came with Valspar in the specialty aerosol plant that we've recently announced also came with Valspar. 1 legacy Sherwin business was the thermoplastic road marking business. Here at Sherwin, we're focused on high-value products and areas. So that didn't fit our portfolio.

Chris，自從宣布成立 Valspar 以來，我們已經完成了 20 筆交易，其中 16 筆是收購，6 筆是資產剝離。我們關注的是我們想要發展我們能夠帶來價值的領域，我們將因向客戶提供解決方案而獲得回報。我們在其他領域也進行了嚴格而嚴格的審視。所以我們已經剝離了——聯邦貿易委員會要求剝離威士伯木材公司。我們剝離了與威士伯一起提供的 Guardsman，以及與威士伯一起提供的澳大利亞韋德。我們已經宣布，中國的華潤特種氣霧劑工廠與威士伯合作，我們最近宣布也與威士伯合作。宣偉的第一大傳統業務是熱塑性道路標線業務。在宣偉，我們專注於高價值產品和領域。所以這不適合我們的投資組合。

But we've done a lot of really good deals that we believe that can help drive value for our shareholders while bringing solutions to our customers. And with that discipline, to your question on will we continue that discipline continues every day here. We're having discussions every day about programs, the hard discussions about customers, the geographies. We don't want to just put flags on a map. We're here to create value for our shareholders. And it's sometimes hard to make those decisions.

但我們已經完成了很多非常好的交易，我們相信這些交易可以幫助為我們的股東帶來價值，同時為我們的客戶帶來解決方案。有了這種紀律，對於你提出的問題，我們是否會繼續這種紀律，這裡每天都在繼續。我們每天都在討論項目、關於客戶、地域的激烈討論。我們不想只是在地圖上放置標記。我們來這裡是為了為股東創造價值。有時很難做出這些決定。

But quite frankly, we look at all of these businesses as part of our capital allocation. When we put our money in to buy Valspar, and we inherited a lot of these businesses, that was capital that was allocated. And if it doesn't meet the threshold for our shareholder return, then we make those difficult decisions. And that's part of who we are. And when we're out looking for acquisitions, it's not just what's for sale. We take a very disciplined approach. We've got a team led by Bryan Young here and our team that does a wonderful job in helping to identify what would be fit if it's for sale or not. And if it's not for sale, we go try to have those honest discussions with the owners about why it might be a better fit with Sherwin. So it's a disciplined approach that we take. We're proud of it. We're not out just trying to buy volume or sales or book of business. It has to fit strategically or we're not interested.

但坦率地說，我們將所有這些業務視為我們資本配置的一部分。當我們投入資金購買威士伯時，我們繼承了很多這樣的業務，這就是分配的資本。如果它沒有達到我們股東回報的門檻，那麼我們就會做出那些艱難的決定。這就是我們的一部分。當我們尋找收購對象時，我們關注的不僅僅是待售的東西。我們採取非常嚴格的方法。我們有一個由 Bryan Young 領導的團隊，我們的團隊在幫助確定哪些產品適合出售或不出售方面做得非常出色。如果它不出售，我們會嘗試與業主進行誠實的討論，了解為什麼它可能更適合宣威。所以這是我們採取的一種嚴格的方法。我們為此感到自豪。我們不只是想購買銷量、銷售額或業務記錄。它必須在戰略上適合，否則我們不感興趣。

Your next question is coming from Ghansham Panjabi from R.W. Baird & Company.

您的下一個問題來自 R.W. Baird & Company 的 Ghansham Panjabi。

John, as you kind of think about 2023 specific to Paint Stores Group, what do you think the common theme is as it relates to the volume outperformance across your various categories. I'm just curious, is the customer backlogs that were a bit stronger than relative to what you initially thought or market share gains or something else?

約翰，當您思考 2023 年特定於 Paint Stores Group 時，您認為共同主題是什麼，因為它與您各個類別的銷量表現相關。我只是好奇，客戶積壓是否比您最初想像的或市場份額增長或其他方面要強一些？

And then on residential repaint, do you think that vertical could be directionally less sensitive to existing home sales on a go-forward basis relative to the historical baseline?

然後，在住宅重新粉刷方面，您是否認為相對於歷史基線，垂直行業對未來現有房屋銷售的敏感度可能會降低？

Well, how about if I take the first piece, and I'll throw it to Heidi on the resale because she's working very closely on that. I think there's a number of areas, Ghansham. I don't want to spend a lot of time on this because I did just hit this, but I think the foundation of our strategy and our focus really comes down to the people that I just mentioned. We talked about this management training program that we've had for over 40 years. We recruit 1,500 college graduates every year. So we're recruiting and we're training and developing the best talent, we believe.

好吧，如果我拿第一件，然後在轉售時把它扔給海蒂，怎麼樣，因為她正在密切關注這件事。我認為有很多領域，Ghansham。我不想在這上面花很多時間，因為我剛剛談到了這一點，但我認為我們戰略的基礎和我們的重點實際上取決於我剛才提到的人。我們討論了我們已經實施了 40 多年的管理培訓計劃。我們每年招聘1,500名大學畢業生。因此，我們相信，我們正在招聘、培訓和培養最優秀的人才。

And yes, we've made some compensation adjustments that appeared in our SG&A to retain this talent. And we think that was a great investment, and we'd make it every day because we're going to win or lose by our people. And so when you ask about what's happening in the market, I think, quite honestly, our people are executing. It's a very choppy market out there right now. There were times when you would talk with customers, and they would say they've not advertised in 5 years and some of our customers had never advertised at all.

是的，我們已經在 SG&A 中進行了一些薪酬調整，以留住這些人才。我們認為這是一項偉大的投資，我們每天都會這樣做，因為我們的輸贏將取決於我們的員工。因此，當您詢問市場正在發生什麼時，我認為，老實說，我們的員工正在執行。現在市場非常動盪。有時候，當你與客戶交談時，他們會說他們已經 5 年沒有做過廣告了，而我們的一些客戶根本就沒有做過廣告。

They were spin-off of working for someone else and the market has been so hot, that they just put a sign up in the first house they painted and then it started to roll. Now with the adversity in the market, we look that much more attractive to painting contractors that are looking for assistance and looking for help. And we welcome that. It's the reason we have over 3,000 sales reps and nearly 5,000 stores in the market.

他們是為別人工作的副產品，而且市場非常火爆，他們只是在自己粉刷的第一棟房子裡掛了一個牌子，然後就開始滾動了。現在，隨著市場的逆境，我們看起來對尋求幫助和尋求幫助的油漆承包商更具吸引力。我們對此表示歡迎。這就是我們在市場上擁有 3,000 多名銷售代表和近 5,000 家商店的原因。

We don't look at our position nationally. We look at our business market by market, customer by customer, and we're trying to address their needs. And so I don't think that there's a lot of wind in the sales of a lot of people on the architectural side, there's good a good book of backlog business, as Heidi mentioned, but there's some uncertainty and there's some choppiness. And our people are there to paraphrase this almost to hold the hands of these important customers and help them through that. And as a result, we get rewarded. So we're executing really well in a choppy market. That's how it would respond how we're performing in the market. regarding res repaint specifically, Heidi, maybe I'll have you answer that.

我們不考慮我們在全國范圍內的地位。我們逐個市場、逐個客戶地審視我們的業務市場，並努力滿足他們的需求。因此，我不認為建築方面的很多人的銷售有很大的風向，正如海蒂提到的那樣，有一本很好的積壓業務書，但存在一些不確定性，並且存在一些波動。我們的員工幾乎是為了握住這些重要客戶的手並幫助他們渡過難關。結果，我們得到了回報。因此，我們在動蕩的市場中執行得非常好。這就是它將如何回應我們在市場上的表現。特別是關於 res repaint，Heidi，也許我會讓你回答這個問題。

Yes, Ghansham, I think the good question. In terms of the reliance on resale, I think that the inverse is true as well, which is that those that are staying in place, making sure that they're aware that this is really about the opportunity to raise the value of their home if they choose to stay. We mentioned earlier the inexpensive and highly impactful project.

是的，甘沙姆，我認為這是個好問題。就對轉售的依賴而言，我認為反之亦然，即那些留在原地的人，確保他們意識到這確實是一個提高房屋價值的機會，如果他們選擇留下來。我們之前提到過這個成本低廉且影響力很大的項目。

I mentioned the data earlier. I'd like to go back to that. I think it's a great example of how we're able to penetrate and not be reliant on the resale market. In terms of our ability to go back -- I'll give you an example, again, without getting into too much detail, mining for the data for those customers that haven't bought paint in a while for customers based on a certain demographic that we know are more likely or a certain region that are more likely to reengage in the category.

我之前提到過數據。我想回到那個話題。我認為這是我們如何能夠滲透而不依賴轉售市場的一個很好的例子。就我們回溯的能力而言——我將再次給您舉一個例子，但不會涉及太多細節，根據特定的人口統計數據挖掘那些已經有一段時間沒有購買油漆的客戶的數據我們知道更有可能或某個地區更有可能重新參與該類別。

Mentioned earlier, our team, something that really differentiates us in this space is we've got 1,500 graduates every year that really own the P&L in their store, and they're hunting for this exact customer. So a lot of respect for the people out that are building these relationships and making sure that whether it's a homeowner or a contractor making sure that we're being very surgical in terms of how we approach these really important customers.

前面提到，我們的團隊在這個領域真正與眾不同的是，我們每年有 1,500 名畢業生真正擁有自己商店的損益表，而他們正在尋找這個確切的客戶。因此，我們非常尊重那些建立這些關係的人，並確保無論是房主還是承包商，都確保我們在接觸這些真正重要的客戶時非常謹慎。

And I'd add 1 thing to that as well, Ghansham, what you're seeing with the softness in existing home sales as an extended period what we're seeing is people can't wait. So that's driving them to new res. And I think that's also supporting some of the new res business. And as we've spoken many times about our business as a table, whichever way the market may tilt. I think it's a great example as John walked through new res, telling you how well prepared and how much value we bring in that area as these folks simply can't find a home to move into because the inventory is so low, we're going to go new build, and we're right there.

我還要補充一件事，Ghansham，你所看到的現房銷售疲軟的情況是長期的，我們看到的是人們已經等不及了。這促使他們尋找新的資源。我認為這也支持了一些新的資源業務。正如我們多次談到的那樣，我們的業務就像一張桌子，無論市場向哪個方向傾斜。我認為這是一個很好的例子，約翰走過了新的資源，告訴你準備得多麼充分以及我們在該地區帶來了多少價值，因為這些人根本找不到可以搬進去的家，因為庫存太低了，我們要去新建，我們就在那裡。

Got it. And then for my second question, on PCG, several categories seem to have been impacted by destocking across the various regions. Where are we in that process, do you think? You give some comments on packaging? What about the other major verticals?

知道了。關於我的第二個問題，關於 PCG，幾個類別似乎受到了各個地區去庫存的影響。您認為我們在這個過程中處於什麼位置？您對包裝有何評論？其他主要垂直領域又如何呢？

Well, I would like to talk about packaging because if there is 1, Ghansham, that fits your description there, it would be packaging. We've got customers working through softer demand and overstock. And as we see that continue. It's likely going to continue through Q3, perhaps even Q4. But we feel really confident. This is a strong team with a growing position with great technology.

好吧，我想談談包裝，因為如果有 1，Ghansham，符合您的描述，那麼它就是包裝。我們的客戶正在應對需求疲軟和庫存過剩的情況。正如我們所見，這種情況仍在繼續。這種情況可能會持續到第三季度，甚至可能持續到第四季度。但我們真的很有信心。這是一支強大的團隊，其地位不斷提升，技術精湛。

We talked about this V70 unique technology that is really fantastic, and we hear it from our customers. It's a plug and play. It's really highly efficient is superior in its ability to keep flavor protection of the product, next-gen non-BPA. It's just a fantastic product, and it's been very well received by our customers. So we've got confidence in this business. It's just going to be bumpy. And while we have high expectations, we often push hard. We also have to be realistic with our team. So we're feeling good there. When you look at the rest of the businesses inside our PCG business, we mentioned it's bumpy. We've got some that might be more resilient as others. We talked about auto refinish. This is a team that's really hitting on all cylinders, unintended that is really leveraging the technology combination from Valspar and Sherwin together, along with the platform of stores.

我們談論了這項非常棒的 V70 獨特技術，並且我們從客戶那裡聽到了這一點。即插即用。它確實非常高效，能夠保持產品的風味保護，是下一代非 BPA。這是一款非常棒的產品，受到了我們客戶的好評。所以我們對這個行業充滿信心。只會變得崎嶇不平。儘管我們抱有很高的期望，但我們常常會努力推動。我們還必須對我們的團隊保持現實。所以我們在那裡感覺很好。當你看看我們 PCG 業務中的其他業務時，我們提到它是坎坷的。我們有一些可能比其他的更有彈性。我們討論了汽車修補漆。這是一支真正全力以赴的團隊，無意中真正利用了威士伯和宣威的技術組合以及商店平台。

Many people think about stores through our architectural Paint Stores Group, but we bring the same value through our automotive stores direct to customer, and we are really growing business there as well. Our general industrial business is 1 that is kind of a mixed bag. If you look at areas such as large ag and construction is doing well, where building products and general finishing is soft.

許多人會通過我們的建築油漆商店集團來考慮商店，但我們通過我們的汽車商店直接向客戶帶來同樣的價值，而且我們也確實在那裡發展業務。我們的一般工業業務是一個魚龍混雜的行業。如果你看看大型農業和建築等領域表現良好，而建築產品和一般裝修則表現疲軟。

So when you look at this business, and you look around wherever you are right now, the office, every substate that you see likely is 1 of 2 businesses, general industrial or industrial wood and our businesses there offer a terrific opportunity, but they're going to be a little bit bumpy.

因此，當您查看這項業務時，環顧四周，無論您現在身在何處，辦公室，您看到的每個子州都可能是一般工業或工業木材業務中的二分之一，而我們在那裡的業務提供了絕佳的機會，但他們'會有點顛簸。

In Coil, I would say we had a decrease in Coil, largely driven by Europe and Asia. North America is holding up a little bit better than other regions. But again, it's a team that's bringing a unique responsiveness to customers' needs in a way that help us grow market share even in a down market.

在線圈方面，我想說我們的線圈有所減少，這主要是由歐洲和亞洲推動的。北美的情況比其他地區要好一些。但同樣，這個團隊對客戶的需求做出了獨特的響應，即使在市場低迷的情況下也能幫助我們擴大市場份額。

your next question is coming from Jeff Zekauskas from JPMorgan Securities.

您的下一個問題來自摩根大通證券的 Jeff Zekauskas。

Is it fair to say that in the first half, raw materials were down by a low to mid-single-digit rate? And in the second half as a base case they should be down by a high single-digit rate.

可以公平地說，上半年原材料價格下跌幅度為低至中個位數嗎？在下半年，作為基本情況，它們應該會出現較高的個位數下降。

Yes, Jeff, I would say you are correct, maybe not quite high single digit on the second half, but close to it, yes.

是的，傑夫，我想說你是對的，下半場也許不是很高的個位數，但接近它，是的。

Okay.

好的。

Third quarter, actually, it will be up our high -- it will be the best improvement year-over-year. Would be the highest, yes.

事實上，第三季度將達到我們的最高水平——這將是同比最好的進步。會是最高的，是的。

And as a base case, for 2024, when you look across your businesses, do you expect your general level of prices to be higher or lower or flat?

作為基本情況，到 2024 年，當您審視您的業務時，您預計總體價格水平會更高、更低還是持平？

Sitting here today, Jeff. We continue to talk about our pricing and our ability to maintain pricing as the raw materials moderate because of the solutions that we drive. I don't think we're ready to talk about incremental pricing for 2024.

今天坐在這裡，傑夫。由於我們推動的解決方案，我們繼續談論我們的定價以及我們在原材料溫和的情況下維持定價的能力。我認為我們還沒有準備好討論 2024 年的增量定價。

We have -- we look at the total input cost basket to determine if we need a price or don't need a price. And as you know, any price discussions we have we'd have them with our customers first then talk to the Street. So we have time to talk about 2024 over the next 1.5 quarters.

我們查看總投入成本籃，以確定是否需要價格或不需要價格。如您所知，我們會先與客戶進行任何價格討論，然後再與華爾街進行討論。所以我們有時間在接下來的 1.5 個季度討論 2024 年。

Your next question is coming from David Begleiter from Deutsche Bank.

您的下一個問題來自德意志銀行的 David Begleiter。

John, Al, how should we think about second half earnings in terms of the cadence between Q3 and Q4?

John、Al，我們應該如何根據第三季度和第四季度之間的節奏來看待下半年的盈利？

Yes. David, I mean, when you look at the earnings, as John and Heidi talked about, our visibility and demand, which is going to drive our performance through the second half is limited. So we have a better line of sight in our third quarter than our second quarter.

是的。大衛，我的意思是，當你看看收益時，正如約翰和海蒂所說，我們的能見度和需求，這將推動我們下半年的業績，這是有限的。因此，我們第三季度的視線比第二季度更好。

We're not -- we don't give EPS or fourth quarter. We don't give EPS guidance, but a couple of other things I would note, I do expect to see a seasonal slowdown in architectural in our fourth quarter, which will impact our gross margin as it historically has done. So I believe this is a year that is the second half more what I would say, typical than some of the last 3 years. But our third quarter is typically a stronger quarter, and I'd expect that to continue.

我們不提供每股收益或第四季度的數據。我們沒有給出每股收益指導，但我要指出的其他一些事情，我確實預計第四季度建築業會出現季節性放緩，這將像歷史上那樣影響我們的毛利率。所以我相信今年是我所說的下半年，比過去三年的一些年份更典型。但我們的第三季度通常是一個更強勁的季度，我預計這種情況會持續下去。

And John, 1 of your competitors announced a couple of homebuilder wins over the last few months. Why do you think they won that business and you may have lost that business? And overall, how is the competitive landscape in that portion of the business?

約翰，您的一位競爭對手宣佈在過去幾個月中贏得了幾項住宅建築商的勝利。為什麼您認為他們贏得了該業務而您可能失去了該業務？總體而言，這部分業務的競爭格局如何？

Yes. Thanks for that. I'd start with every single customer is important to us, everyone. I also think it's important that you understand how we think to us, we play every day in the world series. And we want to sweep the series. We want to win every single game. But we're also realist. We're not going to expect every 1 of our pictures to throw a perfect game were to win every game is a shut out.

是的。感謝那。我首先要說的是，每個客戶對我們每個人都很重要。我還認為了解我們的想法也很重要，我們每天都在參加世界大賽。我們想要橫掃整個系列賽。我們希望贏得每一場比賽。但我們也是現實主義者。我們不會指望我們的每一張照片都能打出一場完美的比賽，但每場比賽都被淘汰。

But I'll tell you this, I believe we have the best team, the best resources and great momentum. So even if our competitors score an occasional run or if our pictures throw up occasional ball here or there, we're not going to panic. We've got, we believe, the right team will sweep the series. And we're out there right now. We believe if you look at that top 100 builders and the penetration that we have, we're growing it and growing it aggressively, and we expect that to continue. And we're doing that at all our competitors' expense. We just don't choose to talk about it.

但我告訴你，我相信我們有最好的團隊、最好的資源和強大的動力。因此，即使我們的競爭對手偶爾得分，或者我們的照片偶爾在這里或那裡拋出球，我們也不會驚慌。我們相信，我們擁有合適的球隊將橫掃整個系列賽。我們現在就在那裡。我們相信，如果你看看前 100 名建築商和我們的滲透率，我們正在不斷增長，並且積極增長，並且我們預計這種情況將繼續下去。我們這樣做的代價是所有競爭對手的利益。我們只是不選擇談論它。

Your next question is coming from Mike Sison from Wells Fargo.

您的下一個問題來自富國銀行的邁克·西森。

With the third quarter volumes potentially being down, do you think things are bottoming as I think about the fourth quarter volumes look like they could be flattish to maybe even up? And then -- and how do you think about 24% volume growth next year? Do you think it's -- we could be in a position to start growing again?

由於第三季度的銷量可能會下降，您認為情況是否已經觸底，因為我認為第四季度的銷量可能會持平甚至上升？然後，您如何看待明年 24%​​ 的銷量增長？您認為我們能夠再次開始增長嗎？

Yes. Mike, take 1 more run at that question here, maybe I missed.

是的。邁克，在這個問題上再跑一趟，也許我錯過了。

Yes, I guess for quarter. I guess I'm trying to understand if you think things are bottoming here in the third and then potential for volume growth for the total entity maybe into the fourth quarter and into 2024?

是的，我想是季度。我想我想了解您是否認為情況在第三季度觸底，然後整個實體的銷量增長潛力可能會持續到第四季度和 2024 年？

Yes. I think that's a challenge answer. I'd say if you look at new residential, we're suggesting that we've outperformed, for example, in new residential and that we expect the balance of the year to be a little bumpier. Housing starts are starting to come back, as I talked about in my prepared remarks, but even homes that are they break ground today, it's likely going to be for the future likely next year before we start painting those. And so I don't -- I'd say we're probably bouncing around here a little bit. We'll see what happens.

是的。我認為這是一個具有挑戰性的答案。我想說的是，如果你看看新住宅，我們建議我們在新住宅方面表現優於大盤，並且我們預計今年的剩餘時間會更加坎坷。正如我在準備好的發言中談到的那樣，房屋開工量開始回升，但即使是今天破土動工的房屋，也可能會在明年我們開始粉刷這些房屋之前就開始施工。所以我不——我想說我們可能會在這裡徘徊一點。我們會看看會發生什麼。

But our approach has been right now that as the market is soft, our goal is to outperform it. And going forward between Q3 and Q4 gallons, I'd say it's likely going to trend about where we are.

但我們目前的做法是，由於市場疲軟，我們的目標是跑贏市場。展望第三季度和第四季度的加侖，我想說，我們的趨勢很可能會發生變化。

Yes. I think on if you look at we said projected to be flat to low single digits. But when you look at the dollars, sequentially, they're pretty close. And that's with new res declining more in our third quarter than we expected in our fourth quarter, which tells you we have some strength in our other segments that John and Heidi talked about, and it's going up against the 21.5% comp last year.

是的。我想如果你看看我們所說的預計將持平至低個位數。但當你按順序查看美元時，它們非常接近。第三季度的新資源下降幅度超過了我們第四季度的預期，這表明我們在約翰和海蒂談到的其他領域有一定的實力，而且與去年 21.5% 的比較相比有所上升。

So when you think about the second half, Paint Stores Group has a tough comp, I'd say the other segments, as we talked about, are choppy, and it's by business, by region. I think some businesses in certain regions have bottomed out. I think there's still challenges that we see in Asia Pacific. But as an example, Europe in our second half, we expect to do better than what we did in the first half. 2024, that's a whole different discussion that we'll have as we get into January on our year-end call.

因此，當你想到下半年時，Paint Stores Group 的競爭非常激烈，我想說，正如我們所討論的，其他細分市場的表現也很不穩定，而且是按業務、按地區劃分的。我認為某些地區的一些企業已經走出低谷。我認為我們在亞太地區仍然面臨挑戰。但舉個例子，我們下半年的歐洲，我們預計會比上半年做得更好。 2024 年，當我們進入 1 月份的年終電話會議時，我們將進行一次完全不同的討論。

One piece I would add to that, I think, is just an indicator of the strength of the backlog. I think if you look at stronger and more solid backlogs across commercial property maintenance and PNM. And I would also say it's not just the backlog, it's the way in which we're interacting with these customers. We're close to these customers than we've ever been before, which is a large part based on our controlled distribution model, but it's also based on coming out of the last few years of a lot of challenges. I think we've all essentially become better planners together. So those backlogs our component, but also our closeness to the customer, gives me a lot of confidence in the outlook.

我認為，我要補充的一點是，這只是積壓情況強度的一個指標。我想如果你看看商業地產維護和 PNM 方面更強大、更紮實的積壓工作。我還想說，這不僅僅是積壓的問題，而是我們與這些客戶互動的方式。我們比以往任何時候都更接近這些客戶，這在很大程度上基於我們的受控分銷模式，但它也基於過去幾年克服的許多挑戰。我認為我們一起基本上都成為了更好的規劃者。因此，我們的組件積壓，以及我們與客戶的密切關係，讓我對前景充滿信心。

Your next question is coming from Arun Viswanathan from RBC Capital Markets.

您的下一個問題來自 RBC 資本市場的 Arun Viswanathan。

I guess I just wanted to follow up on that last point as far as backlog. Could you potentially provide us with some backlogs across maybe some of the different market segments that you're seeing in PSG?

我想我只是想跟進最後一點關於積壓的問題。您能否向我們提供一些您在巴黎圣日耳曼看到的不同細分市場的積壓訂單？

I know when you started out the year, you noted that there was quite a few jobs still in the backlog on the new side through the first half, but then it really kind of limited after that. So how would you characterize the backlog now, if you can provide a little bit more granularity on that?

我知道，當您年初時，您注意到上半年新方面仍有相當多的工作積壓，但在那之後確實有點有限。那麼，如果您能提供更詳細的信息，您現在會如何描述積壓的情況呢？

Yes, Arun, I'd say I'll jump in here. I think if you look at the points that Heidi is making, I think there's 2 points. You're asking 1 very good question, but there's another element here that I want to tie to this. One is if you look across the various segments and say, okay, commercial, we see strong residential repaint, a little bit choppier with resales, but we can see out 6 to 8 months property maintenance strong.

是的，阿倫，我想說我會跳到這裡。我想如果你看看海蒂提出的觀點，我認為有兩點。你問了一個非常好的問題，但這裡還有另一個我想與此聯繫起來的因素。一個是，如果你縱觀各個細分市場，你會說，好吧，商業，我們看到住宅重新粉刷強勁，轉售有點不穩定，但我們可以看到 6 到 8 個月的物業維護強勁。

DIY has been strong, but it's on a softer comps, so we don't expect that to continue. I think all of those are opportunities for us to continue to grow market share, and we will. The other point, though, that I think she's talking -- that she spoke to that I think is important is coming through COVID and in the shortage we've worked much closer with our customers in ways that, quite honestly, I wish I would have had that opportunity when I was in a store.

DIY 一直很強大，但它的綜合實力較弱，所以我們預計這種情況不會持續下去。我認為所有這些都是我們繼續擴大市場份額的機會，我們會的。不過，我認為她正在談論的另一點是——我認為重要的是通過新冠疫情，在短缺的情況下，我們與客戶的合作更加密切，說實話，我希望我能當我在商店時有過這樣的機會。

We're now working collaboratively with what projects are taking place now, what's next, even to the point where if it rains, my fallback is this position. And the fact that we've got our reps and our stores out there, close to the backlog and close with our customers closer than ever before is a terrific advantage that we're trying to leverage.

我們現在正在合作研究現在正在進行的項目、接下來的項目，甚至到如果下雨的話，我的後備就是這個職位。事實上，我們的代表和商店都在那裡，靠近積壓訂單，並且比以往任何時候都更接近我們的客戶，這是我們正在努力利用的一個巨大優勢。

So by segment, I would say, yes, we see new residential likely to slow down a little bit as the slowdown works its way to the painting phase of the homes that weren't started 8 months ago. property maintenance, we're really leveraging the fact that their CapEx money is freeing up. Our national agreements are opportunities for us and the others, as I described. So it's a good market for us because there's a lot of diversity in the market, and that's what we thrive on.

因此，按細分市場來看，是的，我們認為新建住宅的增長可能會稍微放緩，因為這種放緩會影響到 8 個月前尚未開始的房屋的粉刷階段。財產維護，我們真正利用了他們的資本支出資金正在釋放的事實。正如我所描述的，我們的國家協議對我們和其他國家來說都是機會。所以這對我們來說是一個很好的市場，因為市場有很多多樣性，而這正是我們蓬勃發展的基礎。

That's helpful. And then a follow-up on the raw material side. Could you just maybe provide us with some idea of what you've been procuring at in the second quarter? I would imagine it's maybe down mid- to high single digits. And does that flow through, I guess, in the second half? And have you seen any declines in TiO2 as well? Or do you expect any of those?

這很有幫助。然後是原材料方面的跟進。您能否向我們介紹一下您在第二季度的採購情況？我想它可能會下降到中高個位數。我想，這會在下半場發生嗎？您是否也看到了 TiO2 的下降？或者您期望其中任何一個嗎？

Yes, Arun. So our raw material basket in the second quarter was down in that high single-digit range. And what was really driving that deflation for us, as you might expect, is the petrochemical side of the basket, resins, in solvents, even plastic packaging, the decline in some of the key feedstocks such as propylene, it's now flowing through into the things that we're buying, and we expect that to continue -- this is a cycle that we've seen many times over the years.

是的，阿倫。因此，我們第二季度的原材料籃子下降了個位數。正如您所預料的那樣，真正推動我們通貨緊縮的是籃子中的石化方面，樹脂，溶劑，甚至塑料包裝，丙烯等一些關鍵原料的下降，它現在正在流入我們正在購買的東西，我們預計這種情況會持續下去——這是我們多年來多次看到的循環。

With regard to TiO2, your question there, those costs are still a little bit elevated for us, but we expect to see them starting to trend in a more positive direction as the year goes on. Some of the key input costs on TiO2 are elevated right now, chlorine being 1 of the main ones. And I'd also say some suppliers are also trying to manage their capacity a little bit more tightly. But with demand soft here, you're going to see or we believe we're going to see and expect to see some decreases in the TiO2 pricing.

關於二氧化鈦，你的問題是，這些成本對我們來說仍然有點高，但我們預計隨著時間的推移，它們將開始朝著更積極的方向發展。目前，二氧化鈦的一些關鍵投入成本有所上升，其中氯是主要成本之一。我還想說，一些供應商也在嘗試更嚴格地管理他們的產能。但隨著需求疲軟，您將會看到，或者我們相信，我們將會看到並預計 TiO2 價格會出現一些下降。

Your next question is coming from Duffy Fischer from Goldman Sachs.

你們的下一個問題來自高盛的達菲·費舍爾。

I was hoping you could help us just triangulate a little bit. When you look at the midpoint of your guide, what it implies is the back half versus the first half this year is going to be down 22% on EPS. But when you look at the last 7 years, the average is for that to be up 6%, and it's been up 5 of the 7 years. So when you add the raw materials should be better in the second half versus the first.

我希望你能幫助我們進行一些三角測量。當你查看指南的中點時，它意味著今年下半年的每股收益將比上半年下降 22%。但如果你看看過去 7 年，平均增長了 6%，而且這 7 年中有 5 年增長了。所以當你添加原材料時，下半年應該比上半年更好。

I just have a hard time triangulating that new resi will be a big enough negative to take the earnings down on a sequential basis, first half to second half. So -- could you just talk through what else might be negative first half to second half?

我只是很難三角測量新的RESI將是一個足夠大的負面影響，導致上半年到下半年的盈利連續下降。那麼，您能談談上半場到下半場還有什麼可能帶來的負面影響嗎？

Yes, Duffy. I mean it starts with that sales outlook down mid-single digit from for second half versus first half. Less price would be in that. So we've got a nice tailwind in the first half for price that helped drive our operating -- our gross margin.

是的，達菲。我的意思是，下半年的銷售前景比上半年下降了中個位數。價格會更低。因此，上半年我們在價格方面獲得了良好的推動力，這有助於推動我們的運營——毛利率。

And so you also see a lower volume, specifically in consumer and in Performance Coatings Group. So I think as you would expect, you're going to get lower gross profit dollars. I do still expect gross margin expansion in our second half, not quite as good as year-over-year anyway that we saw in our first half because of our comps. And then you do get some help on the raw material reduction, but that is partially offset by lower fixed cost absorption in our second half due to lower production volumes.

因此，您也會看到銷量下降，特別是在消費者和高性能塗料集團中。因此，我認為正如您所期望的那樣，您將獲得更低的毛利潤。我仍然預計下半年的毛利率會有所增長，但由於我們的比較，無論如何，毛利率不會像上半年那樣好。然後，您確實在減少原材料方面獲得了一些幫助，但這被下半年由於產量下降而導致的固定成本吸收減少所部分抵消。

I think SG&A, even we talked about SG&A and the opening and being more aggressive at adding investments for our long-term growth strategy, both in stores, reps, field tech service reps. And the final piece these nonoperating costs that I'd call out that were -- are probably going to be an incremental $60 million to $70 million headwind versus our first half because some of the gains that we had on sale of assets and marketable securities. So I think those are the things that are driving that sequential movement.

我認為 SG&A，甚至我們也談到了 SG&A 和開業，並更加積極地為我們的長期增長戰略增加投資，無論是在商店、代表、現場技術服務代表。我要指出的最後一點是，與上半年相比，這些非運營成本可能會增加 6000 萬至 7000 萬美元，因為我們通過出售資產和有價證券獲得了一些收益。所以我認為這些是推動連續運動的因素。

Okay. And then just, again, if we ever get back to normal, whatever that is, do you still believe that your structural footprint is the second half earnings profile is better than the first half earnings profile for the company?

好的。然後，再一次，如果我們恢復正常，無論是什麼，您仍然相信您的結構性足跡是公司下半年的盈利狀況比上半年的盈利狀況更好嗎？

Yes, Duffy, I try to go back to a normal year 2019. So to your point, I'm not sure what normal is. But I think as we continue to see growth in our Performance Coatings Group, that's less seasonal. You might not see as big of an increase in our second half versus our first half as we move forward. But if we get back to the way Paint Stores Group brand, our consumer business yes, you should typically see that.

是的，達菲，我試圖回到正常的 2019 年。所以就你的觀點而言，我不確定什麼是正常。但我認為，隨著我們的高性能塗料集團繼續增長，這種增長不再是季節性的。隨著我們的前進，你可能不會看到我們下半場與上半場相比有那麼大的增長。但如果我們回到 Paint Stores Group 品牌的方式，我們的消費者業務是的，你通常應該看到這一點。

Okay. I guess I'd just add on to the investment strategy that Al mentioned, we're a 157-year-old company. We're not trying to run the company for a perfect quarter here. We've got confidence in our strategy. It's a proven strategy with proven leadership team. through a proven and growing asset base in stores and the facilities that we're running. So to Al's point, we're going to invest into that. And we played a long game here. We know what we're doing. And quite frankly, we're going to do more of it.

好的。我想我只是補充一下 Al 提到的投資策略，我們是一家擁有 157 年曆史的公司。我們並不是想在這個季度讓公司運營得完美。我們對我們的戰略充滿信心。這是一項經過驗證的戰略，擁有經過驗證的領導團隊。通過我們正在運營的商店和設施中經過驗證且不斷增長的資產基礎。所以就阿爾而言，我們將對此進行投資。我們在這裡打了一場持久戰。我們知道我們在做什麼。坦率地說，我們將做得更多。

Your next question is coming from Adam Baumgarten from Zelman & Associates.

您的下一個問題來自 Zelman & Associates 的 Adam Baumgarten。

Just curious if you could give an update on the Pros paint business and how that's been trending?

只是好奇您能否介紹一下專業塗料業務的最新情況以及其趨勢如何？

Yes, a good question, Adam. I think there's a lot of growing -- certainly growing interest here as it relates to how we're partnering with our strategic retail partners and certainly the investment that's following that with a lot of confidence and growth to be gained there. And I won't get into a lot of the details because I think those are certainly for our retailer partners to share.

是的，這是個好問題，亞當。我認為，人們對這裡的興趣肯定在不斷增長，因為這與我們如何與戰略零售合作夥伴合作有關，當然也與隨之而來的投資有關，並在那裡獲得了很大的信心和增長。我不會透露太多細節，因為我認為這些細節肯定是由我們的零售商合作夥伴分享的。

But I can tell you that the level of collaboration an alignment from the planning standpoint, certainly understanding how the calendar lays out, laying in key events throughout the year, making sure that the data is aligned, the reps are aligned, that the structures are aligned. It's -- we're just getting started hearing. We've got a lot of confidence in where this can go.

但我可以告訴你，從規劃的角度來看，協作的水平是一致的，當然要了解日曆的佈局，全年的關鍵事件，確保數據一致，代表一致，結構一致對齊。這是——我們才剛剛開始聽到。我們對未來的發展充滿信心。

Got it. And then maybe just if you could discuss some of the simplification efforts you're making across the enterprise and kind of the time line there and the impacts you ultimately expect that to have on the business?

知道了。然後，也許您可以討論一下您在整個企業中所做的一些簡化工作以及那裡的時間線以及您最終期望對業務產生的影響？

Yes, it's a great question. I will tell you that, that's going to be a journey onto itself. So when you think about it, how we're kind of broadly defining this is truly looking end to end. Al mentioned this earlier, where we're looking to bring some efficiencies certainly with our global supply chain team. Al mentioned the Performance Coatings Group, I'd say true for all groups and for our supply chain as well, really understanding all the way from the raw materials you asked -- the question was asked earlier, Jim mentioned how we're thinking about procurement in general.

是的，這是一個很好的問題。我會告訴你，這將是一次自我之旅。因此，當您考慮一下時，我們如何廣泛地定義這一點確實是端到端的。艾爾之前提到過這一點，我們希望通過我們的全球供應鏈團隊提高效率。 Al 提到了高性能塗料集團，我想說的是，對於所有集團和我們的供應鏈來說都是如此，真正了解您所問的原材料——這個問題之前已經被問過，Jim 提到我們正在考慮如何考慮採購情況一般。

The conversations that we're having are I would say a lot more detailed relative to the sub-supplier level and making sure that when we step back and look at our supplier strategy, there's a distinction between strategic suppliers and transactional suppliers. So we're having those very important conversations at the front end. And then if I take you all the way through, Al mentioned rationalization efforts that are underway. But as you can imagine, as we simplify the basket, and continue the rationalization efforts from a customer-facing standpoint, it puts us in a much more optimized and efficient standpoint from an operational manufacturing logistics.

我想說，我們正在進行的對話相對於次級供應商級別而言更加詳細，並確保當我們退後一步審視我們的供應商戰略時，戰略供應商和交易供應商之間存在區別。所以我們在前端進行了那些非常重要的對話。然後，如果我一路向您介紹，阿爾提到了正在進行的合理化努力。但正如您可以想像的那樣，當我們簡化購物籃並從面向客戶的角度繼續進行合理化工作時，從運營製造物流的角度來看，這使我們處於更加優化和高效的角度。

And so there's a lot of milestones that the team is setting forward here. This will be a multiyear journey, as I mentioned, but I would expect that we'll see some customer-facing updates as it relates to how we can compete with a more aggressive portfolio of products here in the short run. And then you'll see that continue to show up to the bottom line as we move faster and faster towards automation and the like.

因此，團隊在這裡設定了很多里程碑。正如我所提到的，這將是一個多年的旅程，但我希望我們會看到一些面向客戶的更新，因為這關係到我們如何在短期內與更積極的產品組合競爭。然後你會發現，隨著我們越來越快地邁向自動化等，這一點將繼續體現在利潤上。

Only thing I would add to that, Adam, is we talk about efficiencies, but we also are focused on these efforts to increase our capacity so that we're not having to put capital back into capacity and then also looking at opportunities for working capital reduction. So John talked about the divestitures and part of our capital allocation philosophy, it's really a strong and focus on delivering cash generation back to our targets that we laid out and also how we utilize our -- best utilize our assets.

亞當，我唯一要補充的是，我們談論效率，但我們也專注於提高產能的努力，這樣我們就不必將資本重新投入產能，然後再尋找營運資本的機會減少。因此，約翰談到了資產剝離和我們資本配置理念的一部分，這確實是一個強大的重點，專注於將現金生成返回到我們制定的目標，以及我們如何利用我們的——最好地利用我們的資產。

Your next question is coming from Josh Spector from UBS.

你們的下一個問題來自瑞銀集團 (UBS) 的喬什·斯佩克特 (Josh Spector)。

So just a follow-up on working capital and specifically inventory. So I mean your inventory stepped down a few million -- a few hundred million sequentially. Just curious if you'd say you have your volumes of inventory at the right level for what you're expecting in terms of second half volumes or if you're continuing to destock that inventory through the year, and really what that means for your expectations for working capital for 2023?

所以只是對營運資金和特別是庫存的後續行動。所以我的意思是你的庫存連續減少了幾百萬——幾億。只是好奇，如果您說您的庫存量處於正確的水平，符合您對下半年銷量的預期，或者您是否在全年繼續減少庫存，這對您意味著什麼？ 2023年營運資金預期？

Sure, Josh. As typically is the case as we get into the summer selling season, we will see a sequential decrease in our inventory gains, as you mentioned. I think you'll see a sequential decrease in our third quarter, which is also typical. And then we'll build inventory back in our fourth quarter to our targeted numbers that are similar to prior -- similar to last year, but to more historic levels.

當然，喬什。正如您提到的，隨著進入夏季銷售季節，我們的庫存增量將連續下降，這是典型的情況。我認為您會在第三季度看到連續下降，這也是典型的。然後我們將在第四季度將庫存恢復到與之前類似的目標數字——與去年類似，但達到更高的歷史水平。

So I feel very good about where our inventories are at today. That being said, we'll adjust production through the second half to maintain that targeted year-end inventory. I don't want to get us too far ahead going into next year. So we'll monitor demand trends closely and adjust production schedules accordingly. We'll try to push that working capital back towards our target by year-end. I think that's going to be a little difficult considering accounts payables because of the lower production is what's driving our increase over that 13%. But we'll get that working capital back towards the target of 11%, 11.5% going forward.

因此，我對我們今天的庫存狀況感到非常滿意。話雖這麼說，我們將在下半年調整產量，以維持年底目標庫存。我不想讓我們在明年走得太遠。因此，我們將密切監控需求趨勢並相應調整生產計劃。我們將努力在年底前將營運資金推回到我們的目標。我認為，考慮到應付賬款，這會有點困難，因為產量下降是我們增幅超過 13% 的原因。但我們將使營運資金回到 11%、11.5% 的目標。

Your next question is coming from Steve Byrne from Bank of America.

您的下一個問題來自美國銀行的史蒂夫·伯恩。

Roughly increase in SG&A that you're expecting for the year. Can you talk a little bit about what exactly is driving that? Is that underlying wages -- is it variable comp to incentivize aggressive effort in sales? Is that headcount? Is it something else? Is it a digital app? What would you say is driving that? What are the primary buckets driving a 10% increase in SG&A?

您預計今年的 SG&A 大致增加。您能談談到底是什麼推動了這一趨勢嗎？這是基本工資嗎？是否是可變薪酬來激勵積極的銷售努力？這是人數嗎？難道是別的什麼？它是數字應用程序嗎？您認為是什麼推動了這一趨勢？推動 SG&A 增長 10% 的主要因素是什麼？

Yes, Steve, I don't think it's in our best interest to lay out exactly where our investments are to be truthful with you. I would say that we have a proven leadership team. We've been at this for a long time. We see opportunities, and we invest many of the topics that you brought up are areas of investment.

是的，史蒂夫，我認為向您誠實地說明我們的投資方向並不符合我們的最佳利益。我想說的是，我們擁有一支經過驗證的領導團隊。我們在這方面已經做了很長時間了。我們看到了機會，我們投資了你提到的很多話題都是投資領域。

So yes, we're going to invest in securing our people, the retention of our people, the training of our people. We're going to add reps through our stores and through other channels that are important to us. We're investing in innovation and digital. We're not going to get into any specifics deeper than that. But we believe -- and quite frankly, we're very proud that when we make an investment that our shareholders can count on a return, and we've demonstrated the discipline to be able to do that.

所以，是的，我們將投資於保護我們的員工、留住我們的員工以及培訓我們的員工。我們將通過我們的商店和其他對我們很重要的渠道來增加代表。我們正在投資創新和數字化。我們不會更深入地討論任何細節。但我們相信——坦率地說，我們非常自豪，當我們進行投資時，我們的股東可以指望獲得回報，而且我們已經展示了能夠做到這一點的紀律。

And then on your cost structure, Al, if I heard you right, I think you've indicated low single-digit deflation in raw material costs, and I believe that was not current purchases, but what flowed through COGS in the second quarter -- is there something else that was a meaningful change year-over-year in cost structure like freight or logistics or something because your gross profit increased year-over-year, significantly more than revenue. There seems to be maybe something else in there other than just low single-digit raws.

然後，關於你的成本結構，阿爾，如果我沒聽錯的話，我認為你已經表明原材料成本處於低個位數通貨緊縮，我相信這不是當前的採購，而是第二季度通過銷貨成本流動的東西 - - 是否還有其他成本結構同比發生有意義的變化，例如貨運或物流或其他原因，因為您的毛利潤同比增長，顯著高於收入。除了低個位數的原始數據之外，似乎還有其他東西。

Steve, we had better than low single-digit raw in the second quarter. If that's what I said, that wasn't correct. We had more like high single-digit reduction in raw material costs. And what I said is the offset -- partially offset by lower fixed cost absorption because we had lower production volumes in the second quarter, mainly because we had to rebuild inventories last year, and we didn't have to redo that. So we're at a more typical production schedule this year than last year. So that's maybe what the little bit of a headwind would have been in the quarter versus raw material benefits.

史蒂夫，我們第二季度的原始數據比低個位數要好。如果我這麼說，那是不正確的。我們的原材料成本大幅下降了個位數。我所說的是抵消——部分被較低的固定成本吸收所抵消，因為我們第二季度的產量較低，主要是因為我們去年不得不重建庫存，而我們不必重做。因此，我們今年的生產計劃比去年更加典型。因此，這可能就是本季度相對於原材料優勢可能出現的一點阻力。

With a more optimized supply chain this year versus last year, Steve, last year, literally, we were taking raws wherever we could make them or get them manufacturing paint and sending it to customers wherever they needed it. And we absorbed that into our margin. But I think, again, it speaks to the commitment we make to our customers and why they can count on us.

與去年相比，今年的供應鏈更加優化，史蒂夫，去年，從字面上看，我們在任何可以製造的地方獲取原材料，或者讓它們製造油漆並將其發送給客戶任何需要的地方。我們將其吸收到我們的利潤中。但我認為，這再次說明了我們對客戶做出的承諾以及他們為何可以信賴我們。

Your next question is coming from (inaudible).

您的下一個問題來自（聽不清）。

You talked about the fixed cost drag from lower production volumes. How much lower are utilization rates versus historical levels? And if the recent uptrend maybe in housing starts or commercial and property hangs in there, do you expect to bump up to historic high utilization rates in 2024 and perhaps even prebuild more additional inventory in 4Q?

您談到了產量下降帶來的固定成本拖累。與歷史水平相比，利用率低了多少？如果近期新屋開工或商業地產的上升趨勢持續下去，您是否預計 2024 年利用率會升至歷史高位，甚至可能在第四季度預建更多額外庫存？

Patrick, we don't talk about capacity utilization. I will tell you this that we've added some capacity. So we've got the ability to be more responsive to our customers' needs. When we talked about taking working capital down, Al's comments about getting down in that 11.5% range. We have confidence in our ability to do that. while improving service to our customers as we go through the simplification efforts that his leading to the company on the operational side as well as the capacity that we have.

帕特里克，我們不談論產能利用率。我會告訴你，我們已經增加了一些容量。因此，我們有能力更好地響應客戶的需求。當我們談到降低營運資本時，Al 的評論是要降低 11.5% 的範圍。我們對自己有能力做到這一點充滿信心。同時，隨著我們在運營方面以及我們所擁有的能力方面對公司的領導，我們進行了簡化工作，從而改善了對客戶的服務。

Your next question is coming from Aleksey Yefremov from KeyBanc.

您的下一個問題來自 KeyBanc 的 Aleksey Yefremov。

I just had one question. On DIY, you have easy comps in the first half, getting to harder comps in the second half. What is the underlying trend here for your business and the market overall? Is it sequentially still decelerating, improving or stable?

我只有一個問題。在 DIY 中，上半場的比賽比較簡單，下半場的比賽比較困難。您的業務和整個市場的基本趨勢是什麼？它是否繼續減速、改善或穩定？

I'll start with that. I think if you look at DIY and our Paint Stores Group, I give you a slightly different response versus what we're seeing in the rest of our business and largely based on the premise that there's a slightly different segment and a customer that's looking for more service that want more of that specialty paint store experience.

我將從那開始。我認為，如果你看看 DIY 和我們的油漆店集團，我會給你一個與我們在其他業務中看到的略有不同的反應，並且很大程度上基於這樣的前提：有一個稍微不同的細分市場和正在尋找的客戶更多的服務需要更多的專業油漆店體驗。

So as I mentioned earlier, we're seeing traffic up in our stores. I think the challenge on the softness and you'll see this on the consumer brand side as well. We've gotten back into a strong position of inventory. You'll see some more promotional activity that's been happening in an effort to drive traffic. But but still continue to see some of that softness coming in the current state, at least through the balance of the year.

正如我之前提到的，我們看到商店的客流量有所增加。我認為柔軟度方面的挑戰，你也會在消費品牌方面看到這一點。我們已經恢復了庫存的強勢地位。您會看到更多為了增加流量而進行的促銷活動。但在目前的情況下，至少在今年餘下的時間裡，仍然會繼續看到一些疲軟的情況出現。

Your next question is coming from Kevin McCarthy from Vertical Research Partners.

您的下一個問題來自 Vertical Research Partners 的 Kevin McCarthy。

In your consumer business, can you speak to the outlook for repair and remodeling activity. And given that backdrop, do you expect your market share among Pros to paint to rise or fall or stay about the same over the next year or so?

在您的消費業務中，您能談談維修和改造活動的前景嗎？考慮到這種背景，您預計您在專業人士中的市場份額在未來一年左右會上升、下降還是保持不變？

We expect our market share to grow. And if you look at what's happening from a Lyra standpoint, predictions on what's going to happen right now, I'd say, there's a slowing in the remodel business, but the truth be told is that this is an opportunity for us. In our business, there are a lot of people that talk about percentages and might both large percentage increases on a relatively small business. And quite frankly, this is a new and growing opportunity for us. So the dollars are not where we believe they can be percentage-wise, we have significant increases, and we expect those increases to continue as we partner with our customers who are interested in growing this.

我們預計我們的市場份額將會增長。如果你從天琴座的角度來看正在發生的事情，對現在將要發生的事情的預測，我會說，改造業務正在放緩，但事實是，這對我們來說是一個機會。在我們的行業中，有很多人談論百分比，並且在相對較小的企業中可能會出現大幅百分比增長。坦率地說，這對我們來說是一個新的、不斷增長的機會。因此，美元並沒有達到我們認為可以按百分比計算的水平，我們有顯著的增長，並且隨著我們與有興趣增長這一點的客戶合作，我們預計這些增長將繼續下去。

And importantly, I think to understand the strategy here. There are customers, particularly those that pet as a part of their project that prefer a home center model. Some of those customers might find their way into our stores. And a natural question is the concern about cannibalization. We're not concerned with that. we'll gladly put that share of business up, knowing that there's a significant opportunity for us to grow with our partners to pursue the remodeler, if you will, who is using paint on a project. So yes, it's going to grow. We're focused on it with our customers, and we're the determines group combined. So we expect positive growth.

重要的是，我認為要理解這裡的策略。有些客戶，尤其是那些將寵物作為其項目一部分的客戶，更喜歡家庭中心模式。其中一些顧客可能會進入我們的商店。一個自然的問題是對蠶食的擔憂。我們不關心這個。我們很樂意將這一業務份額提高，因為我們知道，我們有一個重要的機會與我們的合作夥伴共同成長，以追求在項目中使用油漆的改造商（如果您願意的話）。所以是的，它會增長。我們與客戶一起專注於此，我們是共同的決定者。因此我們預計正增長。

And secondly, if I may, perhaps for Al, it appears as though your 2023 CapEx outlook declined by $100 million to $700 million. Why is that? Is that a function of timing or any meaningful changes to the project (inaudible)?

其次，如果可以的話，也許對 Al 來說，您的 2023 年資本支出前景似乎下降了 1 億美元至 7 億美元。這是為什麼？這是時間安排的函數還是對項目的任何有意義的更改（聽不清）？

Yes, Kevin, it's all related to timing. We're still moving forward with the (inaudible) expansion that we had talked about earlier this year. We're still moving forward with the warehouse automation projects that we had talked about and continued driving the packaging capacity expansion that we talked about.

是的，凱文，這一切都與時機有關。我們仍在推進今年早些時候討論過的（聽不清）擴張。我們仍在推進我們談到的倉庫自動化項目，並繼續推動我們談到的包裝產能擴張。

So it's just timing and with a better line of sight to the second half we thought we'd update that number.

因此，這只是時機，並且隨著下半年的視線更好，我們認為我們應該更新該數字。

Your next question is coming from Mike Harrison from Seaport Global.

您的下一個問題來自 Seaport Global 的 Mike Harrison。

You've completed a handful of acquisitions and you're integrating those in the Performance Coatings business. Can you just give us an update on how you're seeing those operating and commercial synergies progressing on some of the key deals that you've completed?

您已經完成了一些收購，並且正在將這些收購整合到高性能塗料業務中。您能否向我們介紹一下您如何看待您已完成的一些關鍵交易中運營和商業協同效應的進展情況？

Yes, Mike, it's a great question. I think there's a whole host of acquisitions John mentioned earlier. And I would say the team is laser focused on, first and foremost, making sure that these integrations are seamless to the customer. We're very focused on the integration at the team level. I think when you look at some of our -- the acquisitions that have been around technologies, our ability to quickly -- the tech transfer has been an area of focus so that we're able to get those products outside of 1 necessary region and in some cases, moving across the country or moving them across globally.

是的，邁克，這是一個很好的問題。我認為約翰之前提到過大量的收購。我想說，團隊首先專注於確保這些集成對客戶來說是無縫的。我們非常注重團隊層面的整合。我認為，當你看看我們的一些收購——圍繞技術的收購，我們快速的能力——技術轉讓一直是一個重點領域，以便我們能夠將這些產品帶到1個必要的地區之外，並且在某些情況下，需要在全國范圍內移動或在全球範圍內移動。

So we're really focused on making sure we're getting the value capture out of some of these and the synergies that we know are there. But there's a lot of great work being done by the teams to make sure that we're keeping our customers focused on a fuller assortment in a fuller portfolio of choices based on these acquisitions.

因此，我們真正專注於確保我們能夠從其中的一些以及我們所知道的協同效應中獲取價值。但團隊正在做很多出色的工作，以確保我們的客戶能夠專注於基於這些收購的更全面的選擇組合中的更全面的品種。

All right. And then you mentioned in the consumer business that you were seeing some stabilization in Europe. I was hoping that you could maybe provide a little more detail on what you're seeing there and maybe what your expectations look like for the second half in Europe, both in terms of demand and as you think about the price/cost front?

好的。然後您在消費者業務中提到，您看到歐洲出現了一些穩定。我希望您能提供更多有關您所看到的情況的詳細信息，以及您對歐洲下半年的期望，無論是在需求方面還是在您對價格/成本方面的考慮？

You're talking about on the consumer side in Europe?

你說的是歐洲的消費者方面嗎？

Consumer in Europe, yes.

歐洲的消費者，是的。

Yes. So first, to capture this, it's a relatively small percentage of our overall business. It's -- we're proud of our relationship there. We play a kind of a niche role, if you will, in intended paint through the Valspar brand this came to us with our acquisition. We've got a terrific relationship that we're interested in growing.

是的。首先，要抓住這一點，它只占我們整體業務的一小部分。我們為我們在那裡的關係感到自豪。如果你願意的話，我們通過收購威士伯品牌在預期的油漆中扮演著一種利基角色，這是我們收購的。我們之間的關係非常好，我們有興趣發展這種關係。

And I'd say the momentum that we have is good, and we're excited about it.

我想說我們的勢頭很好，我們對此感到興奮。

Of that, too, just based on some of the economic recovery, the stability that we're seeing coming in, and I think it's playing to our favor based on this tented program that's unique in a lot of these countries.

其中，也只是基於我們看到的一些經濟復甦和穩定性，我認為基於這個在許多國家中獨一無二的帳篷計劃，這對我們有利。

Your next question is coming from John Roberts from Credit Suisse.

你們的下一個問題來自瑞士信貸銀行的約翰·羅伯茨。

Could you just remind us how big U.S. new res is as a percent of total sales? And even though your paint doesn't get applied until completion, I think you bid it closer to the start. So what's the -- can you quantify at all what the bidding activity has been or the backlog?

您能否提醒我們美國新資源佔總銷售額的比例有多大？即使你的油漆直到完成才被塗上，我認為你在接近開始時出價。那麼，您能量化投標活動或積壓的情況嗎？

John, new residential is a mid-teens percentage of our Paint Stores Group.

約翰，新住宅占我們油漆店集團的百分之十左右。

And we don't bid house, John. We quote our customers on a regular basis, and those are fluid discussions that we have with our customers. So it varies by customer, the timing of any agreements that we have, and we just work closely with our customers to ensure that they have as much lead time to any adjustments to pricing as possible.

我們不競標房屋，約翰。我們定期向客戶報價，這些都是我們與客戶進行的流暢討論。因此，這因客戶、我們達成的任何協議的時間安排而異，我們只是與客戶密切合作，以確保他們有盡可能多的時間來調整定價。

Okay. Even the largest homebuilders?

好的。即使是最大的住宅建築商？

Even the largest.

即使是最大的。

Your next question is coming from Eric Bosshard from Cleveland Research.

您的下一個問題來自克利夫蘭研究中心的埃里克·博斯哈德（Eric Bosshard）。

Clarity on 2 things, if you could. First of all, on raws. The 5 to 9 full year, what was the first half of raw material?

如果可以的話，請澄清兩件事。首先，在原料上。 5到9全年，上半年原材料怎麼樣？

Yes. The first half, I'd say our second half is going to be better than our first half, Eric. In the first quarter, it was a pretty modest. If you remember, we said it was a pretty modest deflation. It got better. I mentioned sort of high single-digit range in the second quarter. It will be better in the second half with probably the third quarter, probably the peak year-over-year benefit.

是的。上半場，我想說我們的下半場會比上半場更好，埃里克。第一季度的表現相當溫和。如果你還記得的話，我們說過這是一次相當溫和的通貨緊縮。情況變得更好了。我提到了第二季度的高個位數範圍。下半年情況會更好，可能是第三季度，可能是同比效益的峰值。

And then secondly, relative to the original guidance, is the increase relative to what you thought the year would look like, it is that even between the first half and second half? Or is that more first half loaded?

其次，相對於最初的指導，增長是否相對於您認為的今年的情況，甚至在上半年和下半年之間也是如此？還是前半部分加載更多？

Yes. Eric, I'd say it's more first half loaded. And as we talked about, we expected a strong first half and demand, as we, again, talked about, was stronger in our first half. So it's more first half loaded.

是的。埃里克，我想說的是，前半部分負載更多。正如我們所談到的，我們預計上半年會表現強勁，正如我們再次談到的那樣，上半年的需求會更加強勁。所以前半部分負載較多。

Okay. And then is there anything different that makes it more first half loaded? Or is there -- I understand the comparisons -- the comparisons existed there were comparisons in the first half as well. I mean is there something that makes -- creates more benefit in the first half than the second half.

好的。那麼有什麼不同之處可以讓它在前半段加載更多嗎？或者有沒有——我理解這些比較——上半場也有比較。我的意思是，有什麼東西可以在上半場創造比下半場更多的效益。

Yes, the comparisons are better. We get more price tailwind in our first half -- and even with that within admin, we had some gains on sale assets and stuff like that, that maybe helped us $0.05 in the second quarter. But yes, the comps are going to get steeper and -- and then it's the outlook on the choppy demand environment. And I would say that's -- while you don't see a bigger tailwind on our second half plus the investments we're making for future growth.

是的，對比一下就更好了。我們在上半年獲得了更多的價格順風——即使在管理方面，我們在出售資產和類似的東西上也取得了一些收益，這可能在第二季度幫助我們 0.05 美元。但是，是的，競爭將會變得更加陡峭——然後就是需求環境波動的前景。我想說的是，儘管你看不到我們下半年的更大推動力，加上我們為未來增長進行的投資。

Your next question is coming from Garik Shmois from Loop Capital.

您的下一個問題來自 Loop Capital 的 Garik Shmois。

Just want to follow up on the strength you're seeing in commercial within Paint Stores Group. It runs a little bit contrary to some of the macro that's been a bit choppier on commercial. So I'm just wondering how much of that is maybe share gains versus a particular vertical that you've been over exposing yourselves to?

只是想跟進您在 Paint Stores Group 的廣告中看到的實力。它的運行與一些在商業上有點波動的宏觀有點相反。所以我只是想知道，與您過度接觸的特定垂直領域相比，其中有多少可能是分享收益？

We do believe we're gaining share there. It's a great opportunity again to highlight this controlled distribution. The approach that we take has been grounded in the focus on the applicator on the specifier and the owner through a distribution platform that is first class.

我們確實相信我們正在那裡獲得份額。這是再次強調這種受控分佈的絕佳機會。我們採取的方法是通過一流的分銷平台關注指定者和所有者的塗抹者。

And so our reps are working hand-in-hand with our customers. I would say that many of our customers would see our reps almost as part of their team. And the more challenging the market, the more valuable that sales rep is and the facilities that we build to service those needs. So yes, I think we're growing share I think there's a good -- really good momentum through the balance of the year, rolling into next year. From there, as I mentioned earlier, while we're not waiting for the business that -- to finish up, we're very focused on those subsegments that I mentioned earlier that are a bit more resilient that we're focused on to continue the momentum.

因此，我們的代表正在與客戶攜手合作。我想說，我們的許多客戶幾乎都會將我們的代表視為他們團隊的一部分。市場越具有挑戰性，銷售代表以及我們為滿足這些需求而建立的設施就越有價值。所以，是的，我認為我們的份額正在增長，我認為今年餘下的時間裡有一個很好的、非常好的勢頭，一直延續到明年。從那裡開始，正如我之前提到的，雖然我們不是等待業務完成，但我們非常關注我之前提到的那些更具彈性的細分市場，我們專注於繼續下去勢頭。

Okay. And I wanted to follow up on resi repaint, you talked about contractor visibility and backlog several times. I just wonder if you could put that in context is the visibility in backlog that you're hearing from your contractor customers. Are these back to more normalized levels at this point? Or are we still running below normal given some of the headwinds over the last several quarters?

好的。我想跟進樹脂重繪，您多次談到承包商的可見性和積壓。我只是想知道您是否可以將其與您從承包商客戶那裡聽到的積壓情況的可見性聯繫起來。目前這些是否已回到更正常的水平？或者考慮到過去幾個季度的一些不利因素，我們的運行速度是否仍低於正常水平？

I would say they're back to more normalized levels. I think you'll see, depending on the size of the rest repaint contractor, some that are willing to take on more and have the labor and the support and the resources to do that and some that are smaller in size and that might be more governed by shortage and labor. We're really trying to intercept them at that point and help them focus on how they can be as productive as possible. So everything from our product assortment to our tools to our reps and how we're engaging these contractors, making sure that when they're on the job site, they're as productive as possible, how they bid, how they quote, how they get paid. So really trying to help them from an entire business standpoint, regardless of the maturity of their size.

我想說他們回到了更加正常化的水平。我想你會看到，根據其餘重漆承包商的規模，有些願意承擔更多工作，並擁有勞動力、支持和資源來做到這一點，而有些規模較小，可能會更多受短缺和勞動力的支配。我們確實在努力攔截他們，幫助他們專注於如何盡可能提高工作效率。因此，從我們的產品分類到我們的工具，再到我們的代表，以及我們如何與這些承包商合作，確保他們在工作現場時盡可能高效，他們如何出價，如何報價，如何他們得到報酬。因此，無論其規模的成熟程度如何，我們都會盡力從整個業務的角度為他們提供幫助。

That concludes our Q&A session. I will now hand the conference back to Jim Jaye for closing remarks. Please go ahead.

我們的問答環節到此結束。現在我將把會議交還給吉姆·傑耶致閉幕詞。請繼續。

I want to thank everybody again for joining our call today. I hope you heard come through loud and clear. Our team is aligned and committed to growing our business profitably, but we're also going to invest in growth and customer-facing initiatives. That's going to drive our success and our customer success over the long term. I'll remind you that our annual financial community presentation is going to be held here in Cleveland on August 24.

我想再次感謝大家今天加入我們的電話會議。我希望你能聽到響亮而清晰的聲音。我們的團隊團結一致，致力於發展我們的業務並實現盈利，但我們也將投資於增長和麵向客戶的舉措。從長遠來看，這將推動我們和客戶的成功。我提醒您，我們的年度金融界演講將於 8 月 24 日在克利夫蘭舉行。

In addition to John, Heidi and Al, you're going to hear directly from our group presidents at the event, and they're looking forward to sharing their plans in each of those operating groups, and you'll hear how they're planning to execute and drive those businesses forward as we described on much of the call today. You can register for that event at our website, and we look forward to seeing you at that event. So thank you again for your interest in Sherwin. Have a great rest of your day.

除了約翰、海蒂和艾爾之外，您還將在活動中直接聽到我們集團總裁的聲音，他們期待在每個運營團隊中分享他們的計劃，您會聽到他們的情況正如我們在今天的電話會議中所描述的那樣，計劃執行並推動這些業務向前發展。您可以在我們的網站上註冊參加該活動，我們期待在該活動中見到您。再次感謝您對宣威的關注。祝您度過愉快的一天。

Thank you, everyone. This concludes today's event. You may disconnect at this time, and have a wonderful day. Thank you for your participation.

謝謝大家。今天的活動到此結束。此時您可能會斷開連接，並度過美好的一天。感謝您的參與。