宣偉 (SHW) 2024 Q3 法說會逐字稿

Good morning. Thank you for joining the Sherwin-Williams Company review of the third quarter 2024 results and our outlook for the fourth quarter and full year of 2024.

早安.感謝您參與宣偉公司對 2024 年第三季業績的審查以及我們對 2024 年第四季和全年的展望。

With us on today's call are Heidi Petz, President and CEO; Al Mistysyn, Chief Financial Officer; Jane Cronin, Senior Vice President, Enterprise Finance; and Jim Jaye, Senior Vice President, Investor Relations and Communications.

與我們一起參加今天電話會議的有總裁兼執行長 Heidi Petz； Al Mistysyn，財務長； Jane Cronin，企業財務資深副總裁；吉姆‧傑伊 (Jim Jaye)，投資者關係與溝通部資深副總裁。

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.

本次電話會議由 Issuer Direct 透過網路 www.sherwin.com 以僅聽模式同時進行網路直播。本次電話會議結束後約 2 小時後，將在 www.sherwin.com 上提供該網路廣播的存檔重播。

This conference call will include certain forward-looking statements as defined under the US federal securities laws with respect to sales, earnings and other matters. Any forward-looking statements speak only as of the date on which such statement is made and the company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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。任何前瞻性陳述僅代表截至該陳述作出之日的情況，本公司不承擔更新或修改任何前瞻性陳述的義務，無論是由於新資訊、未來事件或其他原因。

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.

今天早上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.

我現在將把電話轉給吉姆·傑伊。

Thank you, and good morning. In the third quarter, characterized by ongoing choppy demand, Sherwin-Williams grew consolidated sales, expanded gross margin and grew diluted earnings per share and EBITDA. Sales in all three segments were within our guidance range. We also returned $631 million to our shareholders in the quarter through dividends and share repurchases.

謝謝你，早安。第三季度，在需求持續波動的情況下，宣偉公司實現了綜合銷售額的成長、毛利率的提高以及稀釋每股盈餘和 EBITDA 的成長。所有三個細分市場的銷售額均在我們的指導範圍內。本季我們也透過股利和股票回購向股東返還 6.31 億美元。

We remain highly confident in our strategy and importantly, our team's ability to execute consistently. We continued to invest in the quarter to capitalize on what we see as unprecedented long-term share gain opportunity. We expect these continued near-term investments in stores, sales and technical reps, incremental services and digital capabilities to drive sustained and profitable above-market growth. We also expect the pace of investment to moderate in the fourth quarter, resulting in second half SG&A growth in the more normalized low to mid-single-digit level we have previously described.

我們對我們的策略仍然充滿信心，更重要的是，我們團隊始終如一的執行能力。我們在本季繼續投資，以利用我們認為前所未有的長期股票收益機會。我們預計，對商店、銷售和技術代表、增量服務和數位能力的持續近期投資將推動持續且盈利的高於市場的成長。我們也預期第四季度投資步伐將放緩，從而導致下半年銷售管理及行政費用 (SG&A) 成長達到我們先前描述的更正常化的低至中個位數水準。

As far as our outlook, we are maintaining our full year EPS guidance. We recognize the current range is wider than typical entering the fourth quarter. This range accounts for several variables that are hard to forecast precisely over the next two months, including timing of demand related to recovery from hurricanes Helene and Milton and the potential for extended holiday shutdowns among our industrial customers. Our team continues to navigate these and other near-term challenges while executing on multiple initiatives to drive our long-term success.

就我們的前景而言，我們維持全年每股獲利指引。我們認識到目前的範圍比進入第四季度時的典型範圍要寬。這個範圍考慮了未來兩個月難以準確預測的幾個變量，包括與颶風海倫和米爾頓恢復相關的需求時間，以及我們的工業客戶延長假期停工的可能性。我們的團隊將繼續應對這些和其他近期挑戰，同時執行多項措施以推動我們的長期成功。

Let me now turn it over to Heidi, who will comment on our third quarter results by segment before moving on to our outlook and your questions.

現在讓我將其交給海蒂，她將按部門對我們第三季度的業績發表評論，然後再討論我們的展望和您的問題。

Thank you, Jim, and thank you all for joining us this morning. Before I begin my comments on the quarter and our outlook, please know that our thoughts and sympathies go out to all those that have been impacted by the recent hurricanes in the Southeast US.

謝謝吉姆，也謝謝大家今天早上加入我們。在我開始對本季和我們的前景發表評論之前，請注意，我們對所有受到最近美國東南部颶風影響的人們表示同情和同情。

Our priority has been the safety of our employees, our customers and their families. We've been working hard to provide our people with appropriate support and I'm amazed at how our teams on the ground have come together to help each other.

我們的首要任務是員工、顧客及其家人的安全。我們一直在努力為我們的員工提供適當的支持，我對我們的實地團隊如何團結起來互相幫助感到驚訝。

Approximately 200 of our stores were closed for some period in the third quarter following Hurricane Helene and nearly all were back online by the end of the quarter. Similarly, approximately 225 stores were closed for some period following Hurricane Milton at the start of the fourth quarter, and most of those stores are also now back online. The perseverance and resiliency of our people are inspiring. I could not be prouder of the personal and professional support they are providing our customers as recovery and rebuild efforts begin.

在颶風海倫之後的第三季度，我們大約有 200 家商店關閉了一段時間，到本季末幾乎所有商店都恢復營業。同樣，第四季度初米爾頓颶風過後，大約 225 家商店關閉了一段時間，其中大多數商店現在也恢復營業。我們人民的毅力和韌性令人鼓舞。隨著復原和重建工作的開始，他們為我們的客戶提供的個人和專業支援讓我感到無比自豪。

At our recent financial community presentation, I described our success by design approach. We deliberately make the right choices and the right investments at the right time to drive sustained above-market growth and returns over the long term. It's an approach that has worked for us for decades and is exactly what we are doing right now. The current opportunity to gain market share is nearly unprecedented, and we will continue to take full advantage of it.

在我們最近的金融界演講中，我描述了我們透過設計方法的成功。我們刻意在正確的時間做出正確的選擇和正確的投資，以推動長期持續高於市場的成長和回報。這種方法已經對我們有效了數十年，也正是我們現在正在做的事情。目前獲得市場份額的機會幾乎是前所未有的，我們將繼續充分利用它。

While competitors are distracted or inconsistent in their execution, we offer consistency, stability and reliability. We are a predictable partner. We're doubling down on our strategy because we know it works. Our team is focused, determined and aggressive. We continue to provide our customers with solutions to make them more productive and profitable. We have great confidence in what we are doing, and we believe our results will continue to demonstrate outperformance over time.

當競爭對手在執行中心感到煩躁或不一致時，我們提供一致性、穩定性和可靠性。我們是一個可預測的合作夥伴。我們正在加倍努力我們的策略，因為我們知道它是有效的。我們的團隊專注、堅定、進取。我們持續為客戶提供解決方案，提高他們的生產力和利潤。我們對我們正在做的事情充滿信心，並且相信隨著時間的推移，我們的業績將繼續表現出色。

As far as specifics on the third quarter, we'll begin with the Paint Stores Group, where sales increased by low single digits. Volume and price were both up low single digits. Pro architectural pricing realization was in the range we anticipated, but was partially offset by unfavorable mix. Segment margin decreased to 24.5% due primarily to higher investments in long-term growth opportunities and mix in the quarter.

至於第三季的具體情況，我們將從油漆店集團開始，該集團的銷售額成長了較低的個位數。成交量和價格均出現低個位數成長。專業架構的定價實現在我們預期的範圍內，但被不利的組合部分抵消。部門利潤率下降至 24.5%，主要是由於本季對長期成長機會和組合的投資增加。

Protective & Marine was up high single digits against a low double-digit comparison and has a solid pipeline of projects extending into next year. In Residential Repaint, our prior investments continued to pay off, as we delivered the fifth consecutive quarter of mid-single-digit growth in a flat to down market.

防護與海事業務的成長幅度高達個位數，而兩位數的增幅較低，並且擁有大量持續到明年的專案。在住宅重漆方面，我們先前的投資繼續獲得回報，我們在平穩到下滑的市場中連續第五個季度實現了中個位數成長。

New Residential also grew at a mid-single-digit rate in a choppy but improving market. Commercial grew by low single digits against a high single digit comparison. Property Management was flat with continued delays in CapEx projects. DIY remains soft.

在動盪但正在改善的市場中，新住宅也以中等個位數的速度成長。商業業務以低個位數成長，而對比高個位數成長。由於資本支出項目持續延遲，物業管理業務表現持平。DIY 仍然很軟。

From a product perspective, interior paint sales grew faster than exterior paint sales, where outdoor conditions caused delays in some of our largest regions. We have opened 45 net new stores year-to-date and expect to open 80 to 100 for the full year.

從產品角度來看，內牆塗料銷售成長快於外牆塗料銷售，戶外條件導致我們一些最大地區的延誤。今年迄今，我們已淨開設 45 家新店，預計全年將開設 80 至 100 家。

Moving on to our Consumer Brands Group. Sales decreased by high single digits, inclusive of an approximate 4% impact from unfavorable FX. Sales in North America decreased by a high single-digit percentage, where weakness in existing home sales and inflation continue to pressure the DIY market. In Europe, sales increased by a mid-single-digit percentage. In Latin America, volume and price were positive, but were more than offset by unfavorable FX.

延續我們的消費品牌集團。銷售額下降了高個位數，其中包括不利匯率造成的約 4% 的影響。北美地區的銷售額出現高個位數百分比下降，現有房屋銷售疲軟和通貨膨脹繼續給 DIY 市場帶來壓力。在歐洲，銷售額成長了中個位數百分比。在拉丁美洲，成交量和價格均呈正值，但被不利的匯率所抵銷。

Adjusted segment margin expanded to 22.9%. This was primarily driven by higher fixed cost absorption in the manufacturing and distribution operations within the segment and effective cost control, partially offset by lower net sales.

調整後分部利潤率擴大至22.9%。這主要是由於該部門內製造和分銷業務的固定成本吸收增加以及有效的成本控制所致，但部分被淨銷售額下降所抵消。

In the Performance Coatings Group, net sales were effectively flat as volume was offset by unfavorable FX. Adjusted segment margin decreased to 18%, primarily due to lower sales in North America and unfavorable FX. This high teens margin level demonstrates the continued strong performance that reflects our differentiated customer solutions and business optimization efforts.

在高性能塗料集團，淨銷售額實際上持平，因為銷售量被不利的匯率所抵消。調整後的部門利潤率下降至 18%，主要是由於北美銷售額下降和不利的匯率。這種高雙位數的利潤水準顯示了持續強勁的業績，反映了我們差異化的客戶解決方案和業務優化工作。

We continue to see choppy demand by division and region. Packaging delivered high single-digit growth with sales up in every region. Coil also delivered solid growth driven by share gains. Industrial wood grew low single digits, driven by an acquisition.

我們繼續看到各部門和地區的需求波動。包裝實現了高個位數成長，每個地區的銷售額都有所成長。在股價上漲的推動下，卷材也實現了穩健成長。在收購的推動下，工業木材成長了低個位數。

New account wins in Auto Refinish have been masked by softness in our core business where consumer reluctance to pay deductibles is resulting in lower insurance claims. General industrial continued to face headwinds in heavy equipment and transportation markets. Regionally, sales in the group were positive in all regions except North America, which decreased by a low single-digit percentage.

汽車修補漆領域的新客戶勝利被我們核心業務的疲軟所掩蓋，消費者不願意支付免賠額導致保險索賠減少。一般工業在重型設備和運輸市場持續面臨阻力。從地區來看，除北美地區出現較低的個位數百分比下降外，該集團在所有地區的銷售額均呈正值。

Moving on to our guidance. The slide deck issued with this morning's press release includes our expectations for consolidated and segment sales for the fourth quarter of 2024. The deck also includes our updated guidance for consolidated and segment sales for the full year 2024.

繼續我們的指導。今天早上新聞稿中發布的幻燈片包括我們對 2024 年第四季合併和分部銷售的預期。該簡報還包括我們更新的 2024 年全年合併和細分銷售指南。

Our full year diluted net income per share guidance is unchanged. Our adjusted diluted net income per share growth remains at 8.7% over the prior year at the midpoint of our guidance. We are absolutely focused on executing our plan in the fourth quarter and delivering full year EPS results in the range we provided in July.

我們的全年攤薄每股淨利指引維持不變。我們調整後的稀釋每股淨利成長率仍維持在去年 8.7% 的水平，處於我們指引的中點。我們絕對專注於在第四季度執行我們的計劃，並在我們 7 月份提供的範圍內實現全年每股收益結果。

I also recognize that many of you are beginning to formulate your views for 2025. While we're not providing any specific guidance until January, I can share some high-level commentary that may be useful as a preliminary framework.

我還認識到，你們中的許多人已經開始製定對 2025 年的看法。雖然我們直到一月份才提供任何具體指導，但我可以分享一些可能作為初步框架有用的高級評論。

The single largest variable heading in the next year is the timing and pacing of a true inflection in the demand environment. We stand by our FCP commentary, but it's only a question of when, not if. However, trying to peg this to a specific quarter, let alone a specific month or a week, it's not something we can do with precision.

明年最大的單一變數是需求環境真正轉變的時間和節奏。我們堅持 FCP 的評論，但這只是時間問題，而不是是否會發生的問題。然而，試圖將其與特定季度掛鉤，更不用說特定月份或一周，我們無法精確地做到這一點。

Our forecasting models incorporate a wide variety of indicators, including Lira, existing home sales, housing starts, housing affordability, interest rates, consumer spending and industrial production among many others. Direct input from our customers is a critical data point that also informs our outlook.

我們的預測模型包含多種指標，包括里拉、現房銷售、新屋開工、住房負擔能力、利率、消費者支出和工業生產等。來自客戶的直接輸入是一個關鍵數據點，它也為我們的前景提供了資訊。

While several signals are beginning to move from red to yellow and some from yellow to green, our initial view is that demand is likely to remain choppy in the first half of the year. What is certain is our strategy. We deliver differentiated solutions that make our customers more productive and more profitable.

雖然一些訊號開始從紅色變為黃色，一些訊號從黃色變為綠色，但我們的初步觀點是，今年上半年需求可能會保持波動。確定的是我們的策略。我們提供差異化的解決方案，提高客戶的生產效率和利潤。

The good news is that in a macro and a competitive environment like the current one, approach becomes even more valuable to our current customers while also attracting many new ones. We will continue being very aggressive in pursuit of new business and share of wallet gains.

好消息是，在像當前這樣的宏觀和競爭環境中，這種方法對我們現有的客戶來說變得更有價值，同時也吸引了許多新客戶。我們將繼續非常積極地追求新業務和錢包收益份額。

Sherwin-Williams is incredibly well positioned in each of our targeted end markets. We are confident we will outperform the market in all environments and significantly so when demand becomes more robust. We are committed to driving success by design for our customers, our employees and our shareholders. This concludes our prepared remarks.

宣偉在我們的每個目標終端市場中都處於令人難以置信的有利地位。我們有信心在所有環境下我們都會跑贏市場，當需求變得更強勁時，我們的表現也會顯著優於市場。我們致力於透過設計為我們的客戶、員工和股東帶來成功。我們準備好的演講到此結束。

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)

（操作員說明）

Vincent Andrews, Morgan Stanley.

文森安德魯斯，摩根士丹利。

Thank you and good morning everyone. If I could just ask on the SG&A spend, it seems like there was a tactical decision made in the third quarter just based on the cadence of the spend that you anticipated for the back half, seems like all of a sudden, you pulled more into 3Q than in 4Q. Could you talk about what precipitated that and exactly what you did? Just to give us a sense of what's going on there.

謝謝大家，早安。如果我可以問一下 SG&A 支出，似乎第三季度只是根據您預計後半段的支出節奏做出了戰術決策，似乎突然之間，您投入了更多資金第三季度比第四季度好。您能談談是什麼促成了這一點以及您具體做了什麼嗎？只是為了讓我們了解那裡正在發生的事情。

Yes, let me start. Good morning, Vincent, appreciate the question. I'm going to hand it to Al here to talk a bit about cadence and timing. But a few things, I think, that are really important playing out and as you heard in my prepared remarks, I would tell you that we see this as the ideal time to invest in our long-term strategy.

是的，讓我開始吧。早安，文森特，感謝這個問題。我將把它交給 Al 來談談節奏和時間安排。但我認為，有幾件事非常重要，正如您在我準備好的演講中聽到的那樣，我想告訴您，我們認為這是投資長期策略的理想時機。

And candidly, an opportunity to widen the competitive moat. We're going to continue to capitalize on this, making sure that we are best positioned in areas where our competitors aren't even seeing some of these opportunities.

坦白說，這是一個擴大競爭護城河的機會。我們將繼續利用這一點，確保我們在競爭對手甚至看不到其中一些機會的領域中處於最佳位置。

So we're not waiting for the market to recover fully or to tell us it's time to invest. We're going to continue to keep our head down and make sure we're getting rewarded for these efforts. We will tell you amount in front of customers often and they're sharing with us that competitors are out-promising some of these investments and making all types of commitments to try to mirror what we're doing at Sherwin-Williams.

因此，我們不會等待市場完全復甦或告訴我們是時候投資了。我們將繼續埋頭苦幹，確保我們的努力得到回報。我們會經常在客戶面前告訴您具體金額，他們會與我們分享，競爭對手正在做出一些投資承諾，並做出各種類型的承諾，試圖效仿我們在宣偉所做的事情。

But because we are confident we've got the best assets at the absolute best people in the industry and best technology, we're going to continue to lay in these investments now well ahead of the cycle, well ahead of what's coming into next year.

但因為我們相信我們擁有行業中絕對最優秀的人才和最好的技術的最好的資產，所以我們將繼續在這個週期之前進行這些投資，遠遠領先於明年的投資。

And one more comment before I hand this over to Al, I would very much tell you that I would do this 10 out of 10 times. I think there's no doubt about it, we're confident in our strategy, but we are absolutely going to invest, we're going to win and we're going to continue to deliver for our customers.

在我把這個交給 Al 之前，我還要再說一句，我很想告訴你，十次之中我會這樣做十次。我認為毫無疑問，我們對我們的策略充滿信心，但我們絕對會投資，我們會獲勝，我們將繼續為我們的客戶提供服務。

Yes, Vincent, this is Al Mistysyn. As we have typically done, we're managing growth and operating margin, and we expect a higher gross margin in the second half of the year than we forecasted coming into the quarter. So as we normally do and I reaffirm this at our Investor Day, we take some of that improvement invested in the long-term growth opportunities, particularly in Paint Stores Group that Heidi mentioned.

是的，文森特，我是阿爾‧米斯蒂森。正如我們通常所做的那樣，我們正在管理成長和營業利潤率，我們預計下半年的毛利率將高於我們對本季的預測。因此，正如我們通常所做的那樣，我在投資者日重申了這一點，我們將部分改進投資於長期成長機會，特別是海蒂提到的 Paint Stores Group。

And just to reaffirm what I said on our second quarter call, we are confident in our strategy. We have a consistent investment thesis, and I'm confident we'll get a return for those investments that we are making. And we can point to that like in Res Repaint up mid-single digits over the last five quarters, showing the returns that we're getting for the investments we made in the second half, I think your comment is right.

只是為了重申我在第二季電話會議上所說的話，我們對我們的策略充滿信心。我們有一致的投資理念，我相信我們所做的投資將會獲得回報。我們可以指出，像 Res Repaint 在過去五個季度中成長了中個位數，顯示了我們在下半年進行的投資所獲得的回報，我認為您的評論是正確的。

If I look at our second half forecast, it's in line, SG&A is in line with where I thought coming into the quarter. So there's a little bit of timing in that. So right in line with what we're expecting for the second half. And then the only other piece on that is the continued investments in our digital initiatives and our system modernizations that we've been undertaking.

如果我看一下我們下半年的預測，它是一致的，SG&A 與我對本季的預期一致。所以這裡面有一點時機。這與我們對下半年的預期一致。然後唯一的另一部分是對我們一直在進行的數位規劃和系統現代化的持續投資。

Chris Parkinson, Wolf Research.

克里斯帕金森，沃爾夫研究中心。

Great. Good morning. Could you hit a little bit more on the pricing dynamics for 2024 and then 2025 on a preliminary basis in terms of how we're thinking about realizations, whether or not just the current sluggish environment, even though you're selling a lot of share is holding back from perhaps a better realization '24 and whether or not we could potentially see a bit of a constructive or positive pendulum in terms of those realizations as the market further improves in 2025? Thank you.

偉大的。早安.您能否初步談談 2024 年和 2025 年的定價動態，以及我們如何考慮變現，無論是否只是當前低迷的環境，即使您出售了大量股票是否會阻礙更好的實現24 以及隨著2025 年市場進一步改善，我們是否可能會在這些實現方面看到一些建設性或積極的鐘擺？謝謝。

Yes, Chris. As Jim talked about, we announced the 5% price increase in stores, effective January 6. And the reason behind that is we're feeling pressure and increased feedstocks. We have wage inflation, which is more of a typical increase that we're expecting in '25, but we're also expecting health care to be significantly higher year-over-year.

是的，克里斯。正如 Jim 所說，我們宣布商店提價 5%，自 1 月 6 日起生效。背後的原因是我們感到壓力和原料增加。我們面臨薪資通膨，這更像是我們預計 25 年的典型成長，但我們也預期醫療保健將比去年同期顯著提高。

And I think you're right. The price increase is about where we expect it to be. It's offset by mix and we talk about P&M being stronger, DIY being weaker, which weighs on that overall average selling price. I think when you look into 2025, I think we're going to get into this historical range of 50% to 60%, I'd say. And that's really driven by timing of a number of our national account contracts, we fully expect to get increases.

我認為你是對的。價格上漲與我們預期的一致。它被混合所抵消，我們談論 P&M 更強，DIY 更弱，這對整體平均售價造成壓力。我認為，當你展望 2025 年時，我認為我們將進入 50% 至 60% 的歷史範圍。這實際上是由我們的一些國民帳戶合約的時間安排所推動的，我們完全期望得到成長。

But there's also a new competitive dynamics in the North America architectural market and we have to see how that plays out. But we're committed in this, you know as we have discipline in getting price when we need it and our expectation is we need it.

但北美建築市場也出現了新的競爭動態，我們必須看看結果如何。但我們致力於此，你知道，因為我們有紀律，在需要時獲取價格，並且我們的期望是我們需要它。

John Roberts, Mizuho.

約翰·羅伯茨，瑞穗。

Thank you. In Consumer, there was an interesting divergence between the sales change and the earnings change there. Did the change in intersegment transfers? Was that significantly different than the change in the externally reported sales?

謝謝。在消費者領域，銷售額變化和收入變化之間存在有趣的差異。變動是否為分部間轉移？這與外部報告的銷售變化有顯著差異嗎？

No, John, we did, the allocation that I talked about in the first quarter and second quarter is the same. Global supply chain with a little bit better volume did perform better in the entire increase and our segment profit was due to that dynamic. If you look at, on the Commercial side, our North America business actually went backwards in PBT because of volume.

不，約翰，我們做到了，我在第一季和第二季談到的分配是相同的。銷量稍好一點的全球供應鏈在整個成長中確實表現較好，而我們的部門利潤就是因為這種動態。如果你看一下商業方面，我們的北美業務實際上由於銷量而在 PBT 方面出現了倒退。

And that's been a consistent theme over the last three quarters and even into last, going back to last year. So no real change to the allocation. It's just they performed better. The team, a lot of credit. They're managing their costs tightly and operating more efficiently in a more stable demand dynamic with inventory and production.

這是過去三個季度甚至上個季度的一貫主題，可以追溯到去年。所以分配沒有真正的改變。只是他們表現得更好而已。團隊，功勞很大。他們嚴格管理成本，並在庫存和生產更穩定的需求動態中更有效率地運作。

And John, I would add to that as well. I give the team a lot of credit for a continued focus on refining that portfolio. I'll take you back to some of the key decisions that were made over the last few quarters and years relative to the China divestiture kind of some nonstrategic aerosol business.

約翰，我也想補充一下。我對團隊持續專注於完善該產品組合給予了高度讚揚。我將帶您回顧過去幾個季度和幾年中針對中國剝離某些非戰略性氣霧劑業務而做出的一些關鍵決定。

There's a handful of categories and businesses that the team absolutely was focused on where we can get strong organic core growth, and we walked away from some of those. So a new and improved baseline going forward.

團隊絕對關注少數幾個類別和業務，我們可以在這些類別和業務上獲得強勁的有機核心成長，但我們放棄了其中一些。因此，未來將有一個新的、改進的基線。

This business we talked about at our Analyst Day has really been by design built for speed and profit. So a leaner, meaner or fighting machine, if you will. So excited for the volume to come back so we can realize that (inaudible).

我們在分析師日討論的這項業務實際上是為了速度和利潤而設計的。如果你願意的話，這是一個更精簡、更刻薄或更具戰鬥力的機器。對卷的回歸感到非常興奮，這樣我們就可以意識到（聽不清楚）。

John McNulty, BMO.

約翰·麥克納爾蒂，BMO。

Yeah, good morning. Thanks for taking my question. So when you think about the competitive landscape and some of the changes that have taken place. I think, Kelly-Moore and PPG are pretty well understood, I think, at this point, in terms of where the opportunities are. But it does look like there are other changes throughout the industry. I mean you've got BSF kind of unloading some assets and acts potentially doing the same.

是的，早安。感謝您提出我的問題。因此，當您考慮競爭格局和已經發生的一些變化時。我認為，就機會所在而言，凱利-摩爾和 PPG 在這一點上已經得到了很好的理解。但整個產業似乎確實還發生了其他變化。我的意思是，BSF 正在卸載一些資產，並且可能會做同樣的事情。

So I guess, can you speak to the other competitive parts of your environment in terms of the store's business, or excuse me, in terms of the consumer business, and the PCG group and if you see opportunities there, and then I guess also maybe tied to that, on the consumer side, can you speak to how that customer landscape is looking right now in terms of destocking and where inventories may be at this point as well?

所以我想，您能否談談您環境中商店業務方面的其他競爭部分，或者請原諒，就消費者業務和 PCG 集團而言，您是否看到了那裡的機會，然後我想也許與此相關的是，在消費者方面，您能否談談目前客戶在去庫存方面的狀況以及目前的庫存狀況？

Yeah, good morning, John, I'll start with your first question relative to some of the competitive moves and then I'll hand this over to Al to talk about your question on PPG. I think you nailed it. And I think, first of all, let me be really clear there are always opportunities.

是的，早安，約翰，我將從你關於一些競爭性舉措的第一個問題開始，然後我將把這個問題交給阿爾來討論你關於 PPG 的問題。我想你已經成功了。我認為，首先，讓我明確一點，機會總是存在的。

There's certainly been a lot of shift. In fact, the way that we look at this and take you back to some of our focus on believing in our long-term strategy, our differentiation, investing ahead of the curve, we do see this as a unique moment in our industry, where we are being laser focused on simply doing what we say we will do. It's amazing.

確實發生了很多轉變。事實上，我們看待這個問題的方式，讓你回到我們對長期策略、我們的差異化、超前投資的關注，我們確實認為這是我們行業的一個獨特時刻，其中我們正專注於簡單地做我們說過要做的事。太棒了。

I'm out with customers, the feedback I hear is you guys are consistent, reliable, dependable, it's amazing what a differentiator that is. So we're holding very firm there and making sure that in a down market in an environment where there is a moment in our industry, we're going to invest. It's a hallmark of Sherwin-Williams. I think you're seeing that playing out in real time. But we're always going to continue to look and assess and if there are opportunities for us to strengthen or accelerate our strategy, we are always to open those reviews.

當我和客戶打交道時，我聽到的回饋是你們始終如一、可靠、可靠，這是多麼令人驚奇的差異化因素。因此，我們對此非常堅定，並確保在市場低迷和我們行業存在的環境中，我們將進行投資。這是宣偉的標誌。我認為您正在實時看到這一情況。但我們總是會繼續尋找和評估，如果我們有機會加強或加速我們的策略，我們總是會進行這些審查。

Yes, John, I think, in particular, the consumer, I think inventory levels have been pretty stable. We certainly do not or don't believe that the impact on our sales in the quarter for consumer was due to destocking. I think it's just been a soft, continued soft DIY market.

是的，約翰，我認為，特別是消費者，我認為庫存水準相當穩定。我們當然不認為或不相信本季消費者銷售額的影響是由於去庫存造成的。我認為這只是一個持續不斷的軟 DIY 市場。

And I think you alluded to maybe some of the other opportunities, if there's opportunities for M&A, we certainly take a disciplined approach to that as we always have, and we look at how different assets accelerate our strategy. And if they're in the right segments, in the right regions, then yes, we'll take a look at them.

我認為你可能提到了一些其他機會，如果有併購機會，我們當然會像往常一樣採取嚴格的方法，我們會研究不同的資產如何加速我們的策略。如果它們位於正確的細分市場、正確的區域，那麼是的，我們會關注它們。

David Begleiter, Deutsche Bank.

大衛‧貝格萊特，德意志銀行。

Thank you. Good morning. Heidi now on the PPG business, it's roughly $2 billion in sales in North America. How much of that business do you think is potentially up for grabs? Or are you targeting going forward?

謝謝。早安.Heidi 現在負責 PPG 業務，該業務在北美的銷售額約為 20 億美元。您認為該業務中有多少可能可供爭奪？還是你的目標是繼續前進？

Well, I'll start with, we're focused, first and foremost, on the quality sales there and very consistent as we've talked about relative to all of our portfolio. We're not interested in commodities. We want to simply focus on the premium segments at value what it is that we do and what we deliver every day.

好吧，我首先要強調的是，我們首先關注的是那裡的銷售質量，並且正如我們所討論的相對於我們所有的產品組合而言，銷售質量非常一致。我們對商品不感興趣。我們只想專注於高端細分市場，重視我們所做的事情以及我們每天提供的服務。

I will tell you maybe a better way, I don't know if it's a better way or the way that we're framing that same question, David, would be Kelly-Moore, I would characterize as more of a short-term, share grab opportunity. PPG, I would characterize as more of a long term where there was a lot of respect for that company and we've got to get out in front of these customers and earn every gallon every day and make sure that they understand when we bring them into Sherwin-Williams that we want to work hard to service them and build a lifelong customer. So in terms of quantifying the exact number, I can tell you it's more about making sure it's the quality sales that we want to earn and keep over time.

我會告訴你也許有一個更好的方法，我不知道這是一個更好的方法，還是我們提出同一問題的方法，大衛，是凱利摩爾，我將其描述為更多的短期方法，分享抓住機會。PPG，我將其描述為一個長期的公司，我們對這家公司非常尊重，我們必須站在這些客戶面前，每天賺取每一加侖的油，並確保他們理解我們給他們帶來的東西我們希望努力為宣偉公司提供服務並建立終身客戶。因此，就量化確切數字而言，我可以告訴您，更多的是為了確保我們希望獲得併長期保持高品質的銷售。

Mike Harrison, Seaport Research Partners.

麥克·哈里森，海港研究夥伴。

Hi, good morning. I was hoping that you could speak to your view on remodeling demand and how that could trend? I'm just curious with interest rates coming down and maybe more homeowners potentially tapping into that home equity that they have as we've seen home prices go up. Do you see that as something that's going to be an important driver next year? What are your I guess, internal indicators suggesting about the remodeling side of the market? Thank you.

嗨，早安。我希望您能談談您對改造需求的看法以及這種需求的趨勢如何？我只是好奇利率下降，也許更多的房主可能會利用他們擁有的房屋淨值，因為我們看到房價上漲。您認為這將成為明年的重要驅動因素嗎？我猜，關於市場重塑的內部指標是什麼？謝謝。

Yeah. Good, good morning Mike. This is Jim. Yes, I think your question is very timely. I mean if you look just this morning in the Wall Street Journal, there was an article about America being primed for a home renovation resurgence.

是的。早上好，麥克。這是吉姆。是的，我認為你的問題很及時。我的意思是，如果你今天早上看《華爾街日報》，你會發現一篇關於美國正準備迎接家居裝修復興的文章。

So I think that fits in with our longer-term view where that market is going. We've often talked about some of the indicators that we look at, Lira being one of them, and that's going to start to tick up sometime probably second, third quarter next year.

所以我認為這符合我們對該市場發展的長期看法。我們經常談論我們關注的一些指標，里拉就是其中之一，它可能會在明年第二、第三季的某個時候開始上升。

I do think there is some pent-up demand on the existing home sales. Those numbers, as you know, have been down year-over-year for a long period of time. But as the economy improves, inflation wanes a little bit, people feeling good about the equity in their homes, I think there is a great opportunity for us.

我確實認為現房銷售存在一些被壓抑的需求。如您所知，這些數字在很長一段時間內逐年下降。但隨著經濟好轉，通貨膨脹略有減弱，人們對自己的房屋淨值感覺良好，我認為這對我們來說是一個很好的機會。

Al mentioned and Heidi mentioned the investments that we've laid in ahead of that, right? And you're already seeing it in our Res Repaint numbers being up mid-single digits in a period where the market is flat at best.

艾爾和海蒂都提到了我們在此之前進行的投資，對吧？您已經在我們的 Res Repaint 數據中看到，在市場充其量表現平淡的時期，該數字已上升到中個位數。

So once we start to get some help there, we feel very good about where we're headed and expect our Res Repaint business to be very solid, and that will also help our DIY piece as well.

因此，一旦我們開始在那裡獲得一些幫助，我們就會對自己的發展方向感到非常滿意，並期望我們的 Res Repaint 業務非常穩固，這也將有助於我們的 DIY 作品。

Mike, I think this is a, it's a great question. It's a really good example of this idea of success by design. I give Justin Binns and his organization incredible credit here. I mean you've got a lot of changing in the landscape and the team has been head down at the right point, focused on our differentiation, focus on our, the value that we can create here. So we're not waiting for the market. To Jim's point, when we do see more moderate recovery, we'll absolutely be best positioned to take advantage of that.

麥克，我認為這是一個很好的問題。這是「設計成功」理念的一個很好的例子。我在這裡給予賈斯汀·賓斯和他的組織難以置信的信任。我的意思是，情況發生了很多變化，團隊一直在正確的時間點上努力，專注於我們的差異化，專注於我們可以在這裡創造的價值。所以我們不會等待市場。對於吉姆來說，當我們確實看到更溫和的復甦時，我們絕對能夠最好地利用這一點。

But the team is not waiting and making sure that we're out solving some of these needs for these contractors and building loyalty with a lot of new contractors coming into this Res Repaint space, we're primed for a nice run up here to follow as the market does come back.

但團隊並沒有等待，並確保我們能夠解決這些承包商的一些需求，並與許多進入 Res Repaint 空間的新承包商建立忠誠度，我們已經準備好在這裡進行良好的運作隨著市場確實回歸。

Patrick Cunningham, Citi.

派崔克‧坎寧安，花旗銀行。

Hi, good morning. You mentioned a couple of variables on the wider range for the guide implied for 4Q. I guess, first, can you help size the hurricane impact in 3Q and sensitivity for 4Q? And then on the holiday shutdowns in industrial, is this something customers are hinting at? And is it broader? Or is it more concentrated in equipment and transportation?

嗨，早安。您提到了第四季度指南中更廣泛範圍內的幾個變數。我想，首先，您能幫忙評估一下第三季的颶風影響和第四季的敏感度嗎？那麼，在工業假期停工時，這是客戶所暗示的嗎？而且範圍更廣嗎？還是更集中在設備和交通方面？

Yes, Patrick. If you look at, I'll start with the third quarter impact because having two, it's bad enough having one major hurricane, having two major hurricanes and one in the third quarter, one in the fourth quarter, really adds to the speed of the recovery, and that's what makes it a more uncertain outlook in our fourth quarter and why the higher range.

是的，派崔克。如果你看一下，我將從第三季度的影響開始，因為有兩個，有一個大型颶風就已經夠糟糕了，有兩個大型颶風，一個在第三季度，一個在第四季度，確實增加了颶風的速度。

And it's not necessarily just our stores being able to be open. It's the time it takes for customers to get back to work, to assess the damage, homeowners reviewing insurance claims, and the type of damage that will dictate the speed of recovery, if it's flooding versus really structural.

不一定只有我們的商店才能營業。客戶返回工作崗位、評估損失、房主審查保險索賠所需的時間以及損失的類型將決定恢復速度（如果是洪水還是真正的結構性損失）。

And I'd say, historically, we've taken about four weeks before you start seeing your primers start to pick up, sundries start to pick up and then paint that follows, I just think in this environment with the small quarter that we have in our fourth quarter, and the dynamics that we're talking about with two major hurricanes, it's hard to predict the timing of it actually coming back online.

我想說，從歷史上看，我們花了大約四個星期的時間才開始看到底漆開始增多，雜物開始增多，然後進行油漆，我只是認為在這種環境下，我們擁有的小四分之一在我們的第四季度，以及我們正在談論的兩個主要颶風的動態，很難預測它真正恢復在線的時間。

The impact for Helene in our third quarter was a little less than a point. It's primarily in stores. If you exclude the impact of that stores, it'd be pretty right in line with guidance. And then probably cost us about (inaudible) in the quarter. We didn't call it out. I think we expect to get those sales back in our fourth quarter. It's just, it's going to ramp up as the quarter progresses.

第三季對海倫的影響略小於一分。它主要在商店裡。如果排除這些商店的影響，那麼它就非常符合指導意見。然後本季我們的成本可能約為（聽不清楚）。我們沒有叫出來。我認為我們預計將在第四季度恢復這些銷售額。只是，隨著本季度的進展，它會加速。

And I'll touch briefly on the customer shutdown piece. The way that we're looking at this, and there have been a few examples of more of a temporary shutdown over the holidays and not a lot of noise outside of that. Could that extend potentially, but we're obviously seeing really close with our customers. Karl Jorgenrud and his organization are making sure to stay in lockstep relative to the true demand environment so that we can be the best partners on the other side.

我將簡要談談客戶關閉部分。我們看待這個問題的方式是，有一些在假期期間暫時關閉的例子，除此之外沒有太多噪音。這種情況可能會延長，但顯然我們與客戶的關係非常密切。Karl Jorgenrud 和他的組織確保與真實的需求環境保持同步，以便我們能夠成為另一邊的最佳合作夥伴。

Greg Melich, Evercore ISI.

格雷格·梅里奇，Evercore ISI。

Hi, thanks. I want to circle back on two things. One is the price increase, the 5%. It sounds like you're getting what you expect, which I would imagine is probably, what, 3% in Paint Stores Group. And then should we think it's a little less net the mix? Is that a fair way to think about it?

你好，謝謝。我想回顧兩件事。一是價格上漲，5%。聽起來你得到了你所期望的，我想這可能是，油漆商店集團的 3%。那我們是否應該認為這種混合的淨度有點低呢？這是一個公平的思考方式嗎？

Yes. Greg, I think when you, we look at price, we're getting the effectiveness. It's just because you have a lot of different segments and some are performing better than others, it could dilute that price mix because we look at it as price mix in one bucket.

是的。格雷格，我認為當你，我們關注價格時，我們正在獲得有效性。只是因為你有很多不同的細分市場，並且其中一些細分市場的表現比其他細分市場更好，所以它可能會稀釋價格組合，因為我們將其視為同一桶中的價格組合。

And so it's not going to be quite 3% in the quarter. But as we talked about volume and price are both up low single digits in the third quarter. And as we roll out next year, as an example, as a new Res starts to improve like we saw in our third quarter, that mix change versus Res Repaint and DIY is going to dilute some of that price impact.

因此，本季的成長率不會達到 3%。但正如我們所討論的，第三季銷售和價格均出現低個位數成長。舉例來說，當我們明年推出時，隨著新的 Res 開始改進，就像我們在第三季度看到的那樣，與 Res Repaint 和 DIY 相比，這種混合變化將削弱一些價格影響。

Aleksey Yefremov, KeyBanc Capital Markets.

Aleksey Yefremov，KeyBanc 資本市場。

Hi, thank you. Good morning. Could you comment on the backlog trends for pro contractors, please?

你好，謝謝。早安.您能否評論一下專業承包商的積壓趨勢？

Yes, sure, Aleksey. I think if you look at the backlogs I'd say, beginning maybe with Res Repaint, a little bit choppy here because of what we've seen with the hurricanes coming in. But overall, I'd say fairly normalized. I mean they're seeing fabs out there. I think the bigger thing for us is the share gain opportunities that we're aggressively pursuing.

是的，當然，阿列克謝。我想，如果你看看積壓的訂單，我會說，也許是從 Res Repaint 開始，這裡有點不穩定，因為我們看到颶風來了。但總的來說，我想說相當正常化。我的意思是他們在那裡看到了晶圓廠。我認為對我們來說更重要的是我們正在積極追求的份額成長機會。

You look at some of the other verticals that we're in new Res, we're cautiously optimistic, seeing some pickup there. Commercial would be the one where I would say we've hung in there pretty well this year despite there being extended period of slower starts, but our completions, that backlog is being worked through, and we're still up in our commercial business, but our expectation is that commercial, that backlog will start to start to diminish as we get into next year.

你看看我們在新的 Res 中的其他一些垂直領域，我們持謹慎樂觀的態度，看到了一些回升。我想說，商業業務今年我們表現得很好，儘管啟動速度較慢，但我們的完工情況、積壓工作正在處理中，而且我們的商業業務仍在繼續，但我們的預期是，隨著明年的到來，商業積壓將開始減少。

Michael Sison, Wells Fargo.

麥可西森，富國銀行。

Hey, good morning. So for the fourth quarter, can you hear me?

嘿，早安。那麼關於第四季度，你聽得到我嗎？

Yes.

是的。

Yes. Sorry about that. Yes. So for the fourth quarter, with the growth you're going to see in stores, you've done a nice job there this year. Will segment profit start to turn the corner and grow? And then for 2025, I know you don't want to give the specifics, but if you generate, what type of, I guess, store growth do you need to sort of get back to positive segment profit growth? And any thoughts on SG&A next year? Or do you think you're done in terms of increases?

是的。對此感到抱歉。是的。因此，在第四季度，隨著您將在商店中看到的增長，您今年的工作做得很好。分部利潤會開始扭轉局面並成長嗎？然後到 2025 年，我知道您不想提供具體細節，但如果您實現了，我猜您需要什麼類型的商店成長才能恢復正的細分利潤成長？對明年的SG&A 有什麼想法嗎？或者你認為你的成長已經完成了嗎？

Yes, Mike, concerning the fourth quarter and we typically don't give detailed guidance, but I would say this, we expect all our operating segments to show margin improvement year-over-year. Obviously, we still expect to see a seasonal slowdown in architectural sales in the fourth quarter that we have historically seen. So I don't expect to see operating margin expansion in our two architectural businesses.

是的，麥克，關於第四季度，我們通常不會給出詳細的指導，但我想說的是，我們預計所有營運部門的利潤率將比去年同期有所改善。顯然，我們仍然預期第四季建築銷售將出現歷史上出現的季節性放緩。因此，我預計我們的兩項建築業務的營業利潤率不會擴大。

I think as you get into 2025, I think the plan will be very similar to other years. I realized this year because our first half had an outsized growth because of the investments we made in the second half of last year. I think we'll moderate SG&A without giving full guidance today. We'll give a better guidance in our (inaudible) in January.

我認為進入 2025 年時，該計劃將與其他年份非常相似。我今年意識到，由於去年下半年的投資，我們的上半年出現了巨大的成長。我認為我們今天將在不提供全面指導的情況下調整銷售及管理費用。我們將在一月份（聽不清楚）中提供更好的指導。

But the expectations are going to be the same. If we believe volume in the second half of the year, and, or gross margin is going to be stronger in the second half of the year, we take advantage of those situations just like we did in the quarter, and we'll put more investments in to accelerate our growth when some of these headwinds that Jim and Heidi have talked about, ease up, and we'll take more of a market share than a higher percent of market share as the market turns.

但期望是一樣的。如果我們相信下半年的銷量，或者下半年的毛利率將會更強，我們就會像本季度那樣利用這些情況，並且我們會投入更多資金當吉姆和海蒂談到的一些逆風緩解時，我們將進行投資以加速我們的成長，隨著市場的轉變，我們將獲得更多的市場份額，而不是更高的市場份額。

I just want to add one piece to that. Al said this really well as we think about more of a moderated SG&A profile next year. I also want to articulate and be very clear that no one's head is in the sand here. While we have had a heightened level by design, we absolutely want to get that return. We owe that to our shareholders, and we expect outsized volume growth. We're going to be relentless until we deliver that.

我只想添加一件。Al 說得非常好，因為我們會考慮明年再調整 SG&A 概況。我還想清楚地表明，這裡沒有人把頭埋在沙子裡。雖然我們在設計上已經達到了更高的水平，但我們絕對希望獲得這樣的回報。這是我們對股東的回報，我們預計銷售量將大幅成長。我們將堅持不懈，直到實現這一目標。

Duffy Fischer, Goldman Sachs.

達菲費雪，高盛。

Hey, good morning guys. Just a question on raw materials. I think, Al, you mentioned that you see increased cost for feedstocks. So I was wondering if you kind of break it into different buckets. So one, just being inorganics and pigments and the other kind of the oil derivatives?

嘿，早上好，夥計們。只是一個關於原料的問題。我想，阿爾，你提到你看到原料成本增加。所以我想知道你是否把它分成不同的桶子。那麼，只是無機物和顏料以及另一種石油衍生物嗎？

Oil is down 20% from the first half into the third quarter. Why aren't you seeing some relief actually on that front? And what is it that's driving the increased feedstock costs that you're seeing going forward?

從上半年到第三季度，油價下跌了 20%。為什麼你在這方面沒有看到真正的緩解？您認為未來原料成本增加的原因是什麼？

Yes, Duffy, I'll take that one. So let me just start maybe with what we saw in the third quarter where our raws were flattish year-over-year. We're also looking for them to be flattish year-over-year in the fourth quarter and will come in right around that down low singles that we talked about in our forecast.

是的，達菲，我要那個。因此，讓我先從我們在第三季看到的情況開始，我們的原始數據與去年同期持平。我們也預計它們在第四季度將與去年同期持平，並將在我們預測中談到的低單曲附近出現。

I think if you look at TiO2 kind of going forward, supply is readily available in the market. And I'd say pricing right now is stable, not seeing a whole lot of impact from tariffs right now. But you also have producers who are evaluating their production levels, et cetera. Ultimately, what's going to drive TiO2 is demand, and we'll see how that plays out.

我認為，如果你看看 TiO2 的未來發展，你會發現市場上的供應很容易獲得。我想說，目前的定價是穩定的，目前還沒有看到關稅產生很大的影響。但也有生產者正在評估他們的生產水準等等。最終，推動鈦白粉發展的是需求，我們將拭​​目以待。

On the oil derivatives, yes, we have seen oil kind of come down here recently. But if you look at propylene which I know, Duffy, that you know that's the key feedstock for us. If you look in the third quarter, propylene was up year-over-year, almost 50% in the third quarter, and that was really driven, I think, by a planned and unplanned outages. Epoxy resins were also up in the quarter, and there's some additional tariffs that might come in that might impact that.

在石油衍生性商品方面，是的，我們最近看到石油價格下跌。但如果你看看我所知道的丙烯，達菲，你就會知道這是我們的關鍵原料。如果你看看第三季度，你會發現丙烯同比上漲，第三季度幾乎上漲了 50%，我認為這實際上是由計劃內和計劃外停運推動的。環氧樹脂在本季度也有所上漲，並且可能會產生一些額外的關稅，這可能會影響這一點。

So we're looking at, we haven't seen that propylene or epoxy necessarily impact our basket meaningfully yet. But we're watching it very closely, and we'll see where it goes as we get into the next year. You know we have maybe a quarter or two of visibility. So we're watching those things. That propylene move is meaningful. Ultimately, it's going to be demand though, which is the big driver. We'll give you our official view in January.

所以我們正在考慮，我們還沒有看到丙烯或環氧樹脂必然對我們的籃子產生有意義的影響。但我們正在非常密切地關注它，當我們進入明年時我們會看到它的方向。你知道我們可能有四分之一或兩個可見度。所以我們正在關注這些事情。丙烯的舉動是有意義的。最終，需求將是最大的驅動力。我們將在一月份向您提供我們的官方觀點。

We'll continue to watch it. And we look at the entire basket, as you know, not just our raws. We look at our other costs. Our health care continues to be a major headwind for us, et cetera. So that's kind of our view right now with more to come in January.

我們將繼續關注。如您所知，我們會關注整個籃子，而不僅僅是我們的原料。我們會考慮其他成本。我們的醫療保健仍然是我們的主要阻力，等等。這就是我們現在的觀點，一月還會有更多觀點。

Michael Leithead, Barclays.

邁克爾·萊特黑德，巴克萊銀行。

Hey. Thanks. Good morning guys. Actually, Al, I did want to follow up or circle back on sort of the Paint Stores price increase. It seems like you said raws are, again, uncertain but readily available demand is fairly choppy right now. So curious how you're positioning this price increase to your customers?

嘿。謝謝。早安，夥計們。事實上，艾爾，我確實想跟進或回顧一下油漆店漲價的情況。看來你又說過，原料是不確定的，但現成的需求目前相當不穩定。很好奇您如何向客戶定位這次漲價？

And relatedly, I know a lot of the Paint Stores is tailored towards, say, the larger contractor national accounts. But just given some of the ongoing DIY weakness, retail promo activity, are you seeing any customer swing activity over to the big box or not really an impact that you've seen thus far?

與此相關的是，我知道很多油漆店都是針對較大的承包商國民帳戶量身訂製的。但考慮到 DIY 的一些持續弱點、零售促銷活動，您是否看到任何客戶將活動轉移到大盒子上，或者沒有真正產生您迄今為止看到的影響？

Not an impact we've seen thus far. It's, we continue, as we've talked about, we continue to invest in products and services that help our customers be more effective, grow their top line and grow their bottom line because of the efficiencies they gain by moving up in quality. And when I talk price, I typically include mix in that, and we're consistently working with our customers to provide better service, to provide supply chain, resilience so that we can be their supplier choice, second supplier choice on down.

到目前為止我們還沒有看到這種影響。正如我們所討論的，我們繼續投資於產品和服務，幫助我們的客戶提高效率，增加他們的收入和利潤，因為他們透過提高品質而獲得了效率。當我談論價格時，我通常會考慮混合因素，我們一直與客戶合作，提供更好的服務，提供供應鏈和彈性，以便我們可以成為他們的供應商選擇，甚至是第二供應商選擇。

So there are other input costs that we're taking into account, as Jim just mentioned, on why we need the price increase and the discipline we have to go out with price when we need it.

因此，正如吉姆剛才提到的，我們正在考慮其他投入成本，即為什麼我們需要提價，以及我們在需要時必須遵守價格紀律。

Ghansham Panjabi, Baird.

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

Thank you. Heidi, just in terms of your engagement with major customers specific to PSG, how would you characterize sentiment at their level? It's just more optimism for 2025 as it relates to aggregate activity? I'm just asking because there's been so much noise on volatility with interest rates, including the most recent increase in mortgage rates post the Fed cut. So just curious as to where sentiment stands for 2025?

謝謝。海蒂，就您與巴黎聖日耳曼主要客戶的互動而言，您如何描述他們層面的情緒？只是因為與整體活動有關，所以對 2025 年更加樂觀嗎？我之所以這麼問，是因為利率波動方面存在太多噪音，包括聯準會降息後抵押貸款利率最近的上漲。只是好奇 2025 年的情緒如何？

Yes. Ghansham, I would say it definitely pertinent by segment. And Jim covered some of that just a few moments ago. I think if you look broadly across in aggregate, there is, everyone is reading the same macros. Everyone's hoping that these rate cuts are going to have a faster, more material impact. But I think as everyone's pragmatic here and trying to plan for what the reality is into next year, broadly speaking, it is more of a modest back half potential, what I would say is the broad sentiment.

是的。Ghansham，我想說這絕對與細分市場有關。吉姆剛剛介紹了其中的一些內容。我認為，如果你從總體上看，每個人都在閱讀相同的巨集。每個人都希望降息能夠產生更快、更實質的影響。但我認為，由於這裡每個人都很務實，並試圖為明年的現實情況做好計劃，從廣義上講，後半區的潛力更大，我想說的是廣泛的情緒。

You do cut that by segment and Jim alluded to this a bit earlier, where some of these other signals relative to their existing home sales and the like. We're obviously getting a lot more bullish as we have been on Res Repaint. And I would say the Commercial is probably, the Commercial segment is probably the area where we know that we've got the biggest challenge even throughout the year as some of these projects based on all the reasons you said before, CapEx, labor constraints, kind of live on, I think that's a reality that we're all navigating and I would say, is reflected in our customer sentiment.

你確實按細分市場劃分了這一點，吉姆早些時候提到過這一點，其中一些其他訊號與他們的現有房屋銷售等相關。顯然，我們對 Res Repaint 的看法更加樂觀。我想說的是，商業領域可能是我們知道甚至全年都面臨最大挑戰的領域，因為其中一些項目基於您之前所說的所有原因，資本支出，勞動力限制，我認為這是我們都在面臨的現實，我想說，這反映在我們的客戶情緒中。

Kevin McCarthy, Vertical Research Partners.

凱文·麥卡錫，垂直研究夥伴。

Yes. Thank you. And good morning. I was wondering if you could comment on the outlook for two businesses within the Performance Coatings Group, namely Refinish and Packaging. On the Refinish side, it looks like you've gained some share, but if I understood your commentary correctly, it sounds like that's being masked by lower insurance claims and diminished reluctance to pay deductibles.

是的。謝謝。早安.我想知道您是否可以對高性能塗料集團內的兩個業務（即修補漆和包裝）的前景發表評論。在修補方面，看起來你已經獲得了一些份額，但如果我正確理解你的評論，聽起來這被較低的保險索賠和減少的不情願支付免賠額所掩蓋。

So my question would be, do you view that as more a structural or transitory? And would you expect it to reverse at some point in 2025? And on the packaging side, it looks like you had nice acceleration there. Do you expect that to continue in coming quarters?

所以我的問題是，您認為這更多是結構性的還是暫時的？您預計這種情況會在 2025 年的某個時候發生逆轉嗎？在包裝方面，看起來你在那裡有很好的加速。您預計這種情況會在未來幾季繼續下去嗎？

Yes. Kevin, I'll start with the Refinish piece. And I think one of the reasons, one of the big reasons that I wanted to highlight this at our recent financial community presentation is exactly what you said. I think some of that is mass. I love how we're positioned here in this business.

是的。凱文，我將從修補部分開始。我認為我想在最近的金融界演講中強調這一點的原因之一就是你所說的。我認為其中一些是大眾的。我喜歡我們在這個行業的定位。

If you look at Q3, our sales were impacted by negative low mid-single-digit FX and Latin America, we have more exposure there, just given our mix relative to some of our peers, so you would expect that weight to play out.

如果你看一下第三季度，我們的銷售額受到負低中個位數外匯和拉丁美洲的影響，考慮到我們相對於一些同行的組合，我們在那裡有更多的敞口，所以你會期望這種權重發揮作用。

But if we just take the big approach to your point is it structural and more kind of transitional. We look at this business over time. You're going to see swings quarter-to-quarter, our sales year-to-date, they are down low single digit against a high single-digit comp. So if you exclude FX from that, our sales are flat, which is in line with where our competitors are at in their recent calls.

但如果我們只是採取大的方法來表達你的觀點，那麼它是結構性的，而且更像是過渡性的。我們會隨著時間的推移審視這項業務。你會看到我們的銷售額逐季度波動，年初至今，與高個位數的比較相比，它們的銷售額下降了低個位數。因此，如果您將外匯排除在外，我們的銷售額將持平，這與我們的競爭對手最近的情況一致。

So I want to be really clear that we are not satisfied with this year-to-date number, but it is an environment where claims are down double digits in North America, again, which is our largest region. And having said that, as you look at what is working, and we do expect improving claims, share gains to be a tailwind in next year, the team has done some fantastic work on our collision core program. We're gaining both momentum and adoption here.

因此，我想明確表示，我們對今年迄今為止的數字並不滿意，但在我們最大的地區北美，索賠額再次下降了兩位數。話雖如此，當你看看哪些措施正在發揮作用時，我們確實預計索賠的改善、份額收​​益將成為明年的順風車，該團隊在我們的碰撞核心計劃上做了一些出色的工作。我們在這裡獲得了動力和採用。

And I think it's really important that we continue to look at strengthening what we're doing here. We're out early November of this year with a high single-digit price increase for our direct customers, and we'll be out with others as necessary, but continue to get paid for what we're doing, but confidence that the team is laser-focused on new accounts and share gains, which I think is absolutely sustainable and systemic.

我認為我們繼續考慮加強我們在這裡所做的事情非常重要。今年 11 月初，我們對直接客戶進行了個位數的高價格上漲，必要時我們將與其他人一起退出，但我們將繼續為我們所做的事情獲得報酬，但我們對團隊充滿信心專注於新帳戶和份額收益，我認為這絕對是可持續的和系統性的。

If I go to your second question on Packaging, you mentioned the word acceleration. I think that is a perfect word. Again, this is a business I love how we're positioned. Our sales in our third quarter were up high single digits, all of which was volume. So we're positive in all regions, and our volume was actually up low double digits, which was a bit offset by some of our index pricing agreements. We've got some great momentum. The team has done a fantastic job.

如果我問你關於包裝的第二個問題，你提到了「加速」這個詞。我認為這是一個完美的詞。再說一次，這是一個我喜歡我們定位的業務。我們第三季的銷售額成長了高個位數，而且都是銷售量。因此，我們在所有地區都持樂觀態度，我們的交易量實際上增長了兩位數，這被我們的一些指數定價協議所抵消。我們已經有了一些巨大的動力。該團隊做得非常出色。

So while we're flat year-to-date, if you look at the balance of the year, I would expect to see very strong performance in the fourth quarter leading into next year. We've recaptured some of the temporary share loss that we saw from our Garland, Texas plant event, work is not done. The team's heads are down. They're out earning this business every single day, but strong.

因此，雖然今年迄今為止我們的表現持平，但如果你看看今年的餘額，我預計明年第四季的表現將非常強勁。我們已經收復了德克薩斯州加蘭工廠事件中看到的一些臨時份額損失，但工作尚未完成。隊員們都低下了頭。他們每天都在努力賺取這項業務，而且實力強勁。

When I say strong, very strong line of sight to additional recovery over the next months and many of these customers have, again I'm out spending time with they're eager to return back to Sherwin-Williams. And I would characterize that as just a better appreciation not only of our technology, but the service that we're providing to these customers is world class.

當我說對未來幾個月進一步復甦的強烈、非常強烈的預期時，許多客戶已經這樣做了，我再次花時間與他們一起渴望回到宣偉。我認為這不僅是對我們技術的更好欣賞，也是對我們為這些客戶提供的世界級服務的更好欣賞。

We continue to invest. We believe in our model here. Some recent new wins across other regions, including North America, Latin America and APAC and was just over in our (inaudible) France plant a few weeks ago for our ribbon-cutting ceremony and just couldn't be more pleased with the expansion here. This is going to be the backbone of serving our customers as (inaudible) as there ban on BPA rolls over into Q2 of '26 and there's already some customers that are looking at pacing to that beginning in 2025.

我們繼續投資。我們相信我們的模式。最近在其他地區（包括北美、拉丁美洲和亞太地區）取得了一些新成果，幾週前我們（聽不清楚）法國工廠的剪綵儀式剛結束，我們對這裡的擴張感到非常滿意。這將成為為我們的客戶提供服務的支柱（聽不清楚），因為 BPA 禁令將延續到 26 年第二季度，而且已經有一些客戶正在考慮從 2025 年開始加快步伐。

So I think we're very well positioned where, certainly where the category and the market is going here. And last but not least, really excited that we've just added to our capacity. We just closed on our Henkel metal packaging business October 1. So of course, we're very excited to welcome about 130 employees at our production sites across both Germany and Mexico and the Sherwin family, but big expectations of where this business goes.

因此，我認為我們在該類別和市場的發展方向上處於非常有利的位置。最後但並非最不重要的一點是，我們剛剛增加了容量，對此我感到非常興奮。我們剛在 10 月 1 日關閉了漢高金屬包裝業務。當然，我們非常高興地歡迎大約 130 名員工來到我們位於德國和墨西哥的生產基地以及宣偉家族，但我們對這項業務的發展抱有很大的期望。

Arun Viswanathan, RBC Capital Markets.

阿倫‧維斯瓦納坦 (Arun Viswanathan)，加拿大皇家銀行資本市場部。

Great. Thanks. Thanks for taking my question. So it sounds like Q4, the hurricane impact was not going to be that large since it was about (inaudible) for Q3. So glad to hear that. I guess my main question is just around '25.

偉大的。謝謝。感謝您提出我的問題。所以聽起來像是第四季度，颶風的影響不會那麼大，因為大約是第三季（聽不清楚）。很高興聽到這個消息。我想我的主要問題是在 25 年左右。

When I think about the opportunity for Paint Stores Group, it does sound pretty encouraging when you think about the share gains that you already achieved from Kelly-Moore? Maybe I think you sized that in the past is when they exited about $300 million in sales to assuming a good portion of that potentially that you were able to achieve, maybe you can get a similar amount from PPG.

當我想到 Paint Stores Group 的機會時，當您想到您已經從 Kelly-Moore 那裡獲得的份額收益時，這聽起來確實相當令人鼓舞？也許我認為你過去的規模是當他們退出大約 3 億美元的銷售額時假設你能夠實現其中的很大一部分，也許你可以從 PPG 獲得類似的金額。

And then if you factor in maybe a 3% price increase, as well, it looks like the stores group has line of sight to high single-digit growth next year. Is that how you're thinking about it? Maybe there could be some further gains from lower interest rates, maybe benefiting the second half of next year as well. Is that kind of how we should think about framing up PSG in '25?

如果你再考慮到 3% 的價格上漲，那麼商店集團預計明年將實現高單位數成長。你是這麼想的嗎？也許較低的利率可能會帶來一些進一步的收益，也許明年下半年也會受益。這就是我們在 25 年建造巴黎聖日耳曼的方式嗎？

Arun, I'd temper that. We've been talking about taking a longer period of time for things to filter like interest rate reductions and things of that nature. I mean, we're not, I'm not guiding for 2025, and I know you're not asking that.

阿倫，我會緩和一下。我們一直在討論需要更長的時間來過濾諸如降息之類的事情。我的意思是，我們不會，我不會為 2025 年提供指導，而且我知道您不會問這個。

But I'd temper with all the things we've gone through over the last 1.5 years and how long it's taken to get certain things moving, I would just temper that expectation. And again, we talked about we expect choppiness in our first half and then we'll see.

但我會緩和過去 1.5 年裡我們經歷的所有事情，以及需要多長時間才能讓某些事情發生進展，我只會緩和這種期望。我們再次談到，我們預計上半場會出現波動，然後我們就會看到。

In this environment, a line of sight of three quarters out is pretty far. So let us get to January. Let's, we're going through our operating plans here coming up with the teams. And we'll get a better line of sight to that, and then we'll certainly share that with you.

在這種環境下，四分之三的視線就相當遠了。讓我們進入一月。讓我們與團隊一起制定營運計劃。我們將對此有更好的了解，然後我們一定會與您分享。

Jeff Zekauskas, JPMorgan.

傑夫‧澤考斯卡斯，摩根大通。

Thanks very much. Two-part question. In your discussion of elevated SG&A costs in the quarter, leading to long-term market share gains perhaps, what you said is that in the fourth quarter, the spending will come down, maybe to 0% year-over-year and your direction is to lower your SG&A spending. So what exactly happened in the third quarter where spending was elevated by $50 million and then it's going to go down in the fourth quarter?

非常感謝。兩部分的問題。當您討論本季 SG&A 成本上升可能會導致長期市場份額增長時，您所說的是第四季度支出將下降，可能同比下降至 0%，您的方向是降低您的 SG&A 支出。那麼，第三季支出增加了 5,000 萬美元，然後第四季支出下降，到底發生了什麼事？

And then secondly, in Consumer Brands, like order of magnitude, your margins are up maybe 900 basis points in the quarter and your margins in the stores business are sort of flattish. Can you talk about what's keeping the margins constrained in the stores? And what is it this year that really opened up this sort of 800 or 900 basis point improvement in Consumer Brands with sales being lower?

其次，在消費品牌領域，本季的利潤率可能上升了 900 個基點，而商店業務的利潤率則持平。能談談是什麼限制了商店的利潤嗎？今年，是什麼真正讓消費品牌在銷售額下降的情況下實現了 800 或 900 個基點的改善？

Yes, Jeff. I think when you look at our second half, there's investments going in as well as we're controlling G&A tightly, and sometimes the timing doesn't align exactly in a quarter. So that's why I pointed to the second half and say our expectations of SG&A are in line for the second half as it was coming into the third quarter.

是的，傑夫。我認為，當你看看我們的下半年時，我們會進行投資，並且我們會嚴格控制一般管理費用，有時時間安排在一個季度內並不完全一致。因此，這就是為什麼我指出下半年，並表示我們對下半年的銷售及管理費用 (SG&A) 預期與進入第三季的下半年一致。

And I would just say, we take a disciplined approach to our SG&A. We want to invest in the selling side and driving productivity for our customers by convenience of our stores, expertise on our reps, low turnover in our stores, so they have the same face that they counter, delivery, innovation all goes into the investments we're making.

我只想說，我們對 SG&A 採取嚴格的方法。我們希望投資於銷售方面，並透過我們商店的便利性、我們代表的專業知識、我們商店的低營業額來提高客戶的生產力，因此他們具有與他們對抗的相同面孔，交付，創新都融入到我們的投資中正在做。

On the other side of that, on digital and modernization, we want to allow our employees to be more effective in more consistent data, better systems that allow them to be more effective when they get to the field. And so there's other G&A that we're trying to control very tightly and manage that down.

另一方面，在數位化和現代化方面，我們希望讓我們的員工在更一致的數據和更好的系統中更有效率，讓他們在到達現場時更有效率。因此，我們正在努力嚴格控制並控制其他一般管理費用。

So we can help pay for those while we're waiting for market dynamics to help with the overall demand environment. That being said, I go back to Res Repaint and the 5% mid-single digit growth that we're getting. So the confidence is there in getting the returns.

因此，在等待市場動態來改善整體需求環境的同時，我們可以幫助支付這些費用。話雖這麼說，我還是回到 Res Repaint 以及我們所獲得的 5% 中個位數成長。因此，我們對獲得回報充滿信心。

On Consumer, again, it goes back to higher fixed cost absorption that's being, we're passing that through because global supply chain sits in Consumer Brands, and it's been a headwind for a number of years, and we thought we can get our efficiencies back up to offset it.

在消費者方面，這又回到了更高的固定成本吸收，我們正在通過這一點，因為全球供應鏈位於消費品牌中，多年來這一直是一個逆風，我們認為我們可以提高效率備份以抵消它。

We chose to readjust our standards and when I look at the GSE allocation, it's really no impact on our overall margin. But what you're also seeing is global supply chain has improved year-over-year. So Consumer Brands is getting a big increase from the allocation to stores and to PCG. But on top of that, they're also getting a tailwind from better operations within our global supply chain.

我們選擇重新調整我們的標準，當我查看 GSE 分配時，它實際上對我們的整體利潤率沒有影響。但您也看到，全球供應鏈逐年改善。因此，消費者品牌從商店和 PCG 的分配中獲得了大幅成長。但最重要的是，他們也從我們全球供應鏈內更好的營運中獲得了順風車。

And Jeff, if I go back to your first question on the elevated SG&A leading towards long-term share gains, which is absolutely the intent. And I just want to free visit, I think you used the language around keeping margins constrained in stores.

傑夫，如果我回到你的第一個問題，即提高銷售及管理費用會導致長期股票收益，這絕對是意圖。我只想免費參觀，我認為您使用了有關限製商店利潤的語言。

I would take a different approach there. I think back to Al's earlier comment, when we see these expanded margins, we absolutely want to take advantage of that as an opportunity. So it did give us an opportunity Q3, Q4 to accelerate some of these investments.

我會在那裡採取不同的方法。我回想起艾爾之前的評論，當我們看到這些擴大的利潤時，我們絕對想利用它作為一個機會。因此，它確實給了我們第三季、第四季加速其中一些投資的機會。

And I'll take you back to the six priorities that I laid out at our Financial Community presentation, all designed to deliver this above-market growth. So some of the digital priorities that will absolutely pay off those six priorities, simplification that Al mentioned, helping to make sure that our teams have what they need to go faster and add more value to our customers. So it absolutely was by design. And I think an important, it was opportunistic in our part.

我將帶您回到我在金融界演講中列出的六個優先事項，所有這些都旨在實現高於市場的成長。因此，一些數位化優先事項絕對會帶來 Al 提到的六個優先事項的回報，即簡化，有助於確保我們的團隊擁有更快的速度並為我們的客戶增加更多價值所需的東西。所以這絕對是設計使然。我認為重要的是，這對我們來說是機會主義的。

Chuck Cerankosy, Northcoast Research.

查克·塞蘭科西，北海岸研究中心。

Good morning, everyone. In looking at the market share opportunities out there, I'd like you to maybe talk about what's going on at true value and do it best as well as Heidi, you mentioned better quality sales, can you talk about that given what market share opportunities are available and whether it's DIY sales or contractor sales, res versus commercial? Thank you.

大家早安。在考慮市場份額機會時，我希望您能談談真正的價值，並像海蒂一樣做得最好，您提到了更好的銷售質量，您能談談考慮到市場份額機會嗎是否可用，是DIY 銷售還是承包商銷售，資源還是商業？謝謝。

Yes, you bet. I'll start with the true value do it best. Certainly, we won't comment on our customer strategies. But I think again, as I go back to the point earlier, this is a bit of a moment in our industry. I think there's been a lot of pressure across the category broadly for the last few years. So we'll continue to work in lockstep with our customers as they make shifts and decisions relative to the brands and the banners.

是的，你敢打賭。我將從真正的價值開始，做到最好。當然，我們不會評論我們的客戶策略。但我再次想，當我回到之前的觀點時，這對我們這個行業來說是一個重要的時刻。我認為過去幾年整個類別都面臨著很大的壓力。因此，當客戶做出與品牌和橫幅相關的轉變和決策時，我們將繼續與他們保持同步。

And move on to the, your quality sales question. Within that, there's kind of two prongs to that. One, and I'll go back to my earlier comment, where we want to, it's in our core DNA. We're not interested in being all things to all people there. So we're not going to play in the commodity spaces where we're not getting paid, we're not returning, delivering return to our shareholders.

繼續討論您的品質銷售問題。其中有兩個面向。第一，我將回到我之前的評論，我們想要這樣做，這是我們的核心 DNA。我們不想為那裡的所有人提供一切。因此，我們不會涉足商品領域，因為我們不會獲得報酬，不會回報股東，不會為股東帶來回報。

What is of interest in those quality sales, certainly by the premium subsegments that we serve and making sure that we are focused back to Al's point, how do we help make them more successful. So premium products, opportunities to upgrade them, so they're getting on and off of job sites faster. They're saving time and money on labor with some of these premium products that easier to apply, less touch up. So when we look at the quality sales, it's who we're targeting and how we're trying to service those with the right mix of products.

對這些優質銷售感興趣的是什麼，當然是我們所服務的優質細分市場，並確保我們專注於 Al 的觀點，我們如何幫助他們取得更大的成功。因此，優質產品和升級機會，使他們能夠更快地進出工作現場。他們使用一些更容易塗抹、更少修飾的優質產品節省了勞動力時間和金錢。因此，當我們專注於銷售品質時，我們關注的是我們的目標人群以及我們如何透過正確的產品組合為這些人提供服務。

Josh Spector, UBS.

喬許‧斯佩克特，瑞銀集團。

Yeah, hi, good, good morning. Two quick ones, if I may. Just CapEx, can you just explain what's going on with the year-to-date kind of already being at your target versus your full year guide? And just within performance where you talked about customer slowdowns (inaudible) that's a watch point for you. Can you just be specific on which submarkets you're seeing that as a bigger risk? Thanks.

是的，嗨，早安。如果可以的話，兩個快點。就資本支出而言，您能否解釋一下今年迄今為止已經達到您的目標與全年指南的情況如何？就在您談到客戶速度放緩（聽不清楚）的績效中，這對您來說是一個觀察點。您能否具體說明您認為哪些次市場風險較大？謝謝。

(inaudible) Josh, Year-to-date, CapEx was $700 million, including about $415 million of BOF CapEx. And in what happens is we get reimbursed because of our financing arrangement for our new headquarters. So we've really net is about $200 million.

（聽不清楚）Josh，年初至今，資本支出為 7 億美元，其中包括約 4.15 億美元的 BOF 資本支出。由於我們為新總部所做的融資安排，我們得到了補償。所以我們的實際淨收益約為 2 億美元。

So core CapEx is $355 million. So we guided to the $700 million less $180 million, gets you into that $520 million, around 2% of sales, which is kind of where we want to be at. That's just the noise in the (inaudible) new buildings.

因此核心資本支出為 3.55 億美元。因此，我們將 7 億美元減去 1.8 億美元，得到 5.2 億美元，約佔銷售額的 2%，而這正是我們想要達到的目標。這只是（聽不見的）新建築中的噪音。

And then, Josh, on your, the question relative to PCG and some of those temporary shutdowns, it's broad-based for sure in the general industrial point more to heavy equipment with some of the ag slowing down. Again, we see this as very much transitory point in time, end of season, and there's no signal yet that, that would be widespread or any signal that would be extended at this point.

然後，喬希，關於與 PCG 和其中一些臨時關閉相關的問題，在一般工業領域肯定有廣泛的基礎，更多地指向重型設備，而一些農業增速放緩。再說一次，我們認為這是一個非常短暫的時間點，賽季結束，目前還沒有任何信號表明這種情況會廣泛傳播，也沒有任何信號會在此時延長。

Steve Byrne, Bank of America.

史蒂夫伯恩，美國銀行。

Yes, thank you. Can you comment on what drove the 2% decline in COGS? Jim, you mentioned raws were flattish. Was that a general comment and what were volumes in the top line, does that contribute to the lower COGS?

是的，謝謝。您能否評論一下是什麼原因導致 COGS 下降 2%？吉姆，你提到生菜很平淡。這是一般性評論嗎？

And maybe just secondly, in your outlook for your stores business, are you seeing any aggressive pricing from any of your competitors as you're gaining share? PPG indicated they actually picked up share in the third quarter. So where are you gaining share? And do you see risk that they could get aggressive on price?

也許其次，在您對商店業務的展望中，您是否看到任何競爭對手在您獲得份額時採取激進的定價？PPG 表示，他們的市佔率實際上在第三季有所上升。那麼你在哪裡獲得份額呢？您是否認為他們可能會在價格上變得激進？

So Steve, on our cost of goods sold decreased, the decrease was primarily due to supply chain efficiencies on our Consumer Brands Group with global production volumes up low single digit with the team doing a nice job of controlling costs. The other impact was FX lower cost of goods sold in the quarter. Those are the two main main drivers.

因此，史蒂夫，我們的銷售成本下降，主要是由於我們的消費品牌集團的供應鏈效率提高，全球產量增長了低個位數，而團隊在控製成本方面做得很好。另一個影響是本季銷售商品成本的下降。這是兩個主要驅動因素。

On the volume side, stores was up low single digit. Performance Coatings was flattish and then more PCG was more than offset with lower volume in our consumer.

在銷售方面，商店成長了低個位數。高性能塗料表現平淡，更多的 PCG 被我們消費者的銷售下降所抵消。

Steve, on the store side relative to any competitive aggressive pricing, I would say that we typically look at our industry is, by and large, it's a very disciplined industry, which was why we have a lot of confidence when we do come out, we generally take a leadership position as it relates to price. We want to be out first. We want to be transparent with our customers. We want to deliver this in a way to our customer that helps to set them up for success, at a key partner in the bidding season, helping to, where needed, if needed, coach them through how best to pass that along, so that they understand how to best kind of pass that through, typically, the cost of the actual cost of the product itself is somewhere between 10%, 12%, 15% and then the balance would be the cost of labor.

史蒂夫，在商店方面，相對於任何具​​有競爭力的激進定價，我想說的是，我們通常認為我們的行業總的來說，這是一個非常有紀律的行業，這就是為什麼當我們出來時我們有很大的信心，我們通常在價格方面處於領先地位。我們想先出去。我們希望對客戶保持透明。我們希望以某種方式向我們的客戶傳遞這一點，幫助他們在投標季節的關鍵合作夥伴處取得成功，在需要時幫助指導他們如何最好地傳遞這一點，以便他們知道如何最好地傳遞這一點，通常情況下，產品本身的實際成本在10%、12%、15% 之間，然後餘額就是勞動成本。

And so if we're able to do what we've continually focused on, which is at these crews on and off of job sites that ultimately is a positive to make sure that we continue to focus on upselling customers, especially in some of these environments.

因此，如果我們能夠做我們一直關注的事情，即工作現場內外的工作人員，這最終將是積極的，以確保我們繼續專注於向上銷售客戶，特別是在其中一些領域環境。

Have not seen, we've not seen a lot of activity, I would tell you, because this is an unprecedented moment in our industry. We're certainly paying very close attention. We're staying extremely close to our customers to be competitive in a mix of environments, but we're confident that we're going to hold on to this recent, this price that we just announced, and we'll be back in our 50 to 60 kind of historic run rate, and we don't plan to come off of that.

還沒看到，我們還沒有看到很多活動，我會告訴你，因為這是我們產業前所未有的時刻。我們當然非常密切關注。我們與客戶保持著非常密切的聯繫，以便在各種環境中保持競爭力，但我們有信心我們將堅持我們剛剛宣布的最新價格，並且我們將回到我們的50 到60 種歷史運行率，我們不打算擺脫這個。

Adam Baumgarten, Zelman.

亞當·鮑姆加滕，澤爾曼。

Hey, good morning, everyone. Just on your kind of initial thoughts on the first half of next year remaining choppy from a high level. Is the way to kind of interpret that, that it's a continuation of the trends you're seeing here in the back half of '24 at this point?

嘿，大家早安。只是關於您對明年上半年在高水平上保持波動的初步想法。可以這樣解釋嗎，這是你在 24 世紀後半段看到的趨勢的延續？

Yes, that's exactly what we're seeing.

是的，這正是我們所看到的。

And if I could, and Adam, AI just nailed it, but I had to jump in here because I go back to this idea of it's not if, it's when. And so this kind of slower longer is playing out in real time, and we are absolutely prepared to manage that situation.

如果我可以的話，亞當，人工智慧就成功了，但我必須跳到這裡，因為我回到了這個想法：問題不在於是否，而是何時。因此，這種較慢的時間是即時發生的，我們完全準備好應對這種情況。

Garik Shmois, Loop Capital Markets.

Garik Shmois，Loop 資本市場。

Oh, hi, thanks. Just on the SG&A and the potential increase in the back half of next year, if sales ramp. Just maybe bigger picture, just how you're thinking about SG&A leverage? Is there a kind of investment of sales you'd be managing to over time? Or is it maybe (multiple speakers) a situation right now?

哦，嗨，謝謝。僅就銷售費用、一般行政費用以及明年下半年的潛在成長（如果銷售增加）而言。也許只是更大的圖景，您如何看待 SG&A 槓桿？隨著時間的推移，您是否能夠進行某種銷售投資？或者（多個發言者）現在可能是這種情況嗎？

I think, Garik, it's situational with, as we've talked about, our focus is on driving operating margin. And some years, that's gross margin expansion in other years like '21 and '22, it's on SG&A leverage. We're, as Heidi mentioned, I mean we're really being opportunistic to set ourselves up for when demand returns because our gross margin has been stronger because our global supply chain with a more normal production and inventory cycle this year building inventory leading into the summer selling season.

我認為，加里克，正如我們所討論的那樣，我們的重點是提高營業利潤率。有些年份是毛利率擴張，而其他年份如 21 和 22 年則是毛利率擴張，這是基於 SG&A 槓桿。正如海蒂所提到的，我的意思是，我們真的在機會主義，為需求恢復做好準備，因為我們的毛利率一直更強，因為我們的全球供應鏈今年的生產和庫存週期更加正常，庫存增加到夏季銷售旺季。

We saw our inventory drop through the third quarter, and we expect to build inventory architectural inventory in our fourth quarter. That bell curve and being more standard helps us with how we schedule our factories, how we're able to produce the right products at the right time and we get efficiencies out of that, and we're realizing those and taken some of the benefit and putting it into these long-term investments.

我們看到第三季的庫存下降，我們預計將在第四季度建立庫存架構庫存。鐘形曲線和更標準有助於我們如何安排工廠，如何在正確的時間生產正確的產品，並從中提高效率，我們正在實現這些目標並從中受益並將其投入這些長期投資。

Eric Bosshard, Cleveland Research Company.

艾瑞克‧博斯哈德（Eric Bosshard），克里夫蘭研究公司。

Thanks. If I could follow up. Al your comment, I think you just talked about the focus is driving operating margin earlier. How do you talk about achieving above market growth. I guess what I'm trying to figure out is, where does the curve of investment moderate the market share growth sustains and operating margin expands? Or is that not the target that you're aiming for?

謝謝。如果我能跟進的話。在您的評論中，我認為您剛才談到了重點是早些時候提高營業利潤率。您如何談論實現高於市場的成長？我想我想弄清楚的是，投資曲線在哪裡可以調節市場佔有率的持續成長和營業利潤率的擴大？或者說這不是你想要的目標？

No. we absolutely are aiming to, we'll moderate on the G&A side. I think to help pay for the selling investments because we're confident in our strategy because we've been consistent in our investments and because we know we can get a return on those investments. I think as SG&A, I'm sorry, as the macro demand environment improves, you will see us get leverage on SG&A going out in the future.

不，我們的目標絕對是，我們會在一般行政費用方面進行調整。我認為有助於支付出售投資的費用，因為我們對我們的策略充滿信心，因為我們的投資始終如一，而且我們知道我們可以獲得這些投資的回報。我認為，作為 SG&A，我很抱歉，隨著宏觀需求環境的改善，你會看到我們在未來的 SG&A 上發揮槓桿作用。

It's just not, going back to, it's not if, it's when because as your volumes start growing and mix improves, you can invest heavy enough to not get leverage on SG&A. So we absolutely are focused on managing gross margin expansion and SG&A leverage at the appropriate time to get our operating margin to grow at a faster pace.

回到問題上來，問題不是“是否”，而是“何時”，因為隨著您的銷量開始增長且組合改善，您可以進行足夠大的投資，而不會在SG&A上獲得槓桿作用。因此，我們絕對專注於在適當的時間管理毛利率擴張和銷售、一般行政費用槓桿，以使我們的營業利潤率以更快的速度成長。

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

謝謝。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。

Thank you, Matthew, and thanks, everybody, for joining us this morning. As we've often said, we don't run the business for the perfect quarter. But what we do is run the business to drive that long-term above-market growth and the returns. And that's exactly what we're doing right now. We believe in our strategy. We're investing in it.

謝謝你，馬修，也謝謝大家今天早上加入我們。正如我們常說的，我們不會為了完美的季度而經營業務。但我們所做的是經營業務以推動長期高於市場的成長和回報。這正是我們現在正在做的事情。我們相信我們的戰略。我們正在投資它。

Heidi mentioned a couple of times, we're at a very unique place in our industry right now. The current opportunity to gain market share is nearly unprecedented, and we're going to take full advantage of that. We're very confident in our approach and our people, the trends favor us long term and our team is very motivated to get after it. So thank you again.

海蒂多次提到，我們現在在業界處於一個非常獨特的位置。目前獲得市場份額的機會幾乎是前所未有的，我們將充分利用這一機會。我們對我們的方法和我們的員工非常有信心，趨勢對我們長期有利，我們的團隊也非常有動力去追隨它。所以再次感謝你。

As always, myself, Eric Swanson will be available for your calls over the remaining week and coming days. Thank you so much.

像往常一樣，我本人 Eric Swanson 將在剩下的一周和未來幾天內接聽您的電話。太感謝了。

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。