Westlake Corp (WLK) 2026 Q1 法說會逐字稿

Good morning, ladies and gentlemen. Thank you for standing by, and welcome to the Westlake Corporation first-quarter 2026 earnings conference call. (Operator Instructions) As a reminder, ladies and gentlemen, this conference is being recorded today, May 5, 2026.

各位女士、先生，早安。感謝各位撥冗等候，歡迎參加 Westlake Corporation 2026 年第一季財報電話會議。(接線員指示) 提醒各位女士、先生，本次會議將於今日 2026 年 5 月 5 日錄音。

I would like to turn over the call to today's host, Jeff Holy, Westlake's Vice President and Chief Accounting Officer. Sir, you may begin.

現在我想把電話交給今天的主持人，Westlake 副總裁兼首席會計長 Jeff Holy。先生，您可以開始了。

Thank you, Crystal. Good morning, everyone, and welcome to the Westlake Corporation conference call to discuss our first-quarter 2026 results. I'm joined today by Albert Chao, our Executive Chairman; Jean-Marc Gilson, our President and CEO; Steve Bender, our Executive Vice President and Chief Financial Officer; and other members of our management team.

謝謝你，Crystal。各位早安，歡迎參加 Westlake Corporation 電話會議，討論我們 2026 年第一季的業績。今天與我一同出席的有：我們的執行董事長 Albert Chao；總裁兼執行長 Jean-Marc Gilson；執行副總裁兼財務長 Steve Bender；以及管理團隊的其他成員。

During the call, we will refer to our two reporting segments: Performance and Essential Materials, which we refer to as PEM or Materials; and Housing and Infrastructure Products, which we refer to as HIP or Products.

在本次電話會議中，我們將提及兩個申報部門：高性能與基礎材料（Performance and Essential Materials），我們稱之為 PEM 或 Materials；以及住宅與基礎建設產品（Housing and Infrastructure Products），我們稱之為 HIP 或 Products。

Today's conference call will begin with Jean-Marc, who will open with a few comments regarding Westlake's first-quarter performance. Steve will then discuss our financial and operating results, after which Jean-Marc will add a few concluding comments, and we will open the call up to questions.

今天的電話會議將先由 Jean-Marc 開場，針對 Westlake 第一季表現做幾點說明。接著 Steve 將討論我們的財務與營運結果，之後 Jean-Marc 會補充幾點結語，並開放提問。

During the first quarter of 2026, we agreed to pay $67 million to settle certain legal claims in our pipe and fittings business. We also incurred expenses of $18 million related to the shutdown of facilities undertaken last year. We refer to these expense items, which in aggregate were $85 million, as the identified items in our earnings release and on this conference call.

在 2026 年第一季，我們同意支付 6,700 萬美元，以和解我們管材與配件業務中的若干法律索賠。我們也認列了 1,800 萬美元費用，與去年進行的設施關閉相關。我們將上述費用項目合計 8,500 萬美元，在新聞稿與本次電話會議中稱為「已識別項目」。

References to income from operations, EBITDA, net income and earnings per share on this call all exclude the financial impact of the identified items. As such, comments made on this call will be in regard to our underlying business results using non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to GAAP financial measures is provided in our earnings release, which is available in the Investor Relations section of our website.

本次電話會議中提及的營業利益、EBITDA、淨利與每股盈餘，均排除已識別項目的財務影響。因此，本次電話會議的評論將以非 GAAP 財務衡量指標呈現我們的核心業務表現。非 GAAP 財務衡量指標與 GAAP 財務衡量指標之間的調節表，已載於我們的財報新聞稿，並可於本公司網站的投資人關係專區取得。

Today, management is going to discuss certain topics that will contain forward-looking information that is based on management's beliefs as well as assumptions made by and information currently available to management. These forward-looking statements suggest predictions or expectations and thus are subject to risks or uncertainties. These risks and uncertainties are discussed in Westlake's Form 10-K for the year ended December 31, 2025, and other SEC filings.

今天，管理層將討論若干主題，其中包含前瞻性資訊，該等資訊係基於管理層的信念，以及管理層所作之假設與目前可得資訊。這些前瞻性陳述代表預測或期望，因此可能受到風險或不確定性影響。相關風險與不確定性已於 Westlake 截至 2025 年 12 月 31 日止年度的 Form 10-K，以及其他向 SEC 提交的文件中說明。

We encourage you to learn more about these factors that could lead our actual results to differ by reviewing these SEC filings, which are also available on our Investor Relations website. This morning, Westlake issued a press release with details of our first-quarter results. This document is available in the Press Release section of our website at westlake.com. We have also included an earnings presentation, which can be found in the Investor Relations section on our website.

我們鼓勵各位透過查閱上述亦可於投資人關係網站取得的 SEC 文件，進一步了解可能導致實際結果與預期不同的因素。今天上午，Westlake 已發布新聞稿，詳述我們第一季的業績。該文件可於 westlake.com 網站的新聞稿專區取得。我們也提供了財報簡報，可於網站的投資人關係專區找到。

A replay of today's call will be available beginning today, approximately two hours following the conclusion of this call. This replay may be accessed via Westlake's website. Please note that information reported on this call speaks only as of today, May 5, 2026, and therefore, you are advised that time-sensitive information may no longer be accurate as of the time of any replay.

今天電話會議的重播將自今日起提供，約在本次會議結束後兩小時開始。可透過 Westlake 的網站收聽重播。請注意，本次電話會議所揭露之資訊僅截至今日（2026 年 5 月 5 日）為準，因此任何具時效性的資訊在重播時點可能已不再準確。

Finally, I would advise you that this conference call is being broadcast live through an Internet webcast system that can be accessed on our web page at westlake.com.

最後提醒各位，本次電話會議正透過網際網路網路直播系統進行即時播出，可於我們的網頁 westlake.com 進入收看。

Now I would like to turn the call over to Jean-Marc Gilson. Jean-Marc?

現在我想把電話交給 Jean-Marc Gilson。Jean-Marc？

Thank you, Jeff, and good morning, everyone. We appreciate you joining us to discuss our first-quarter 2026 results. During the first quarter, we delivered $2.7 billion in net sales and EBITDA of $235 million by supporting our customers' supply needs, managing our costs, executing our three-pillar profitability improvement plan and driving long-term value creation.

謝謝你，Jeff，各位早安。感謝各位參與，與我們一同討論 2026 年第一季的業績。第一季期間，我們透過支援客戶供應需求、管理成本、執行三大支柱獲利改善計畫並推動長期價值創造，達成淨銷售額 27 億美元與 EBITDA 2.35 億美元。

While the first two months of the quarter saw PEM sales reflect lower sales prices and continued soft global industrial and manufacturing activity, Sales improved significantly in March as the conflict in the Middle East brought about a significant disruption to global supplies of oil, chemical feedstocks and polymers from the Persian Gulf.

雖然本季前兩個月 PEM 的銷售反映較低的售價，以及全球工業與製造活動持續疲弱，但 3 月銷售顯著改善，因中東衝突對來自波斯灣的全球石油、化工原料與聚合物供應造成重大干擾。

Commercial conditions for Westlake and our industry changed dramatically with the outbreak of the Middle East conflict. Industry consultants estimate that this conflict has disrupted approximately 10% to 15% of global polyethylene supply and approximately 5% of global PVC resin supply.

隨著中東衝突爆發，Westlake 及整體產業的商業環境出現劇烈變化。產業顧問估計，該衝突已擾亂約 10% 至 15% 的全球聚乙烯供應，以及約 5% 的全球 PVC 樹脂供應。

Furthermore, up to 20% of global oil supply is disrupted, which has reduced the availability of chemical feedstocks such as NAFTA for much of the global chemical industry, creating further declines in the global supply of polyethylene and PVC. The associated sharp increase in global oil and chemical fixed stock prices has significantly steepened the global cost curve for many of the material that PEM cells, which is supporting higher selling prices and margins for cost-advantaged producers in North America, such as Westlake.

此外，全球石油供應最多有 20% 受到干擾，降低了全球化工產業中多數業者對石腦油等化工原料的可得性，進一步造成全球聚乙烯與 PVC 供應下滑。伴隨而來的全球油價與化工原料價格大幅上升，顯著推升了 PEM 所銷售之多項材料在全球的成本曲線，進而支撐較高的售價與利潤，對北美具成本優勢的生產商（如 Westlake）尤為有利。

In response to the reduction in global chemical and polymer production created by the Middle East conflict and significantly higher feedstock cost in much of Asia and Europe, customers around the world thought supply from producers and affected by the production disruptions caused by the conflict, which drove increased demand for our polyethylene, PVC and epoxy resin, and increased prices for our products. Our advantaged asset footprint in North America using gas-based feedstocks positions Westlake to benefit from the pricing momentum and expected associated margin expansion since the contract began.

因中東衝突導致全球化工與聚合物產量下降，且亞洲與歐洲多數地區原料成本顯著上升，全球客戶轉而尋求未受衝突造成之生產中斷影響的生產商供應，帶動我們的聚乙烯、PVC 與環氧樹脂需求增加，並推升產品價格。我們在北美以天然氣為基礎原料的資產布局具優勢，使 Westlake 得以受惠於價格動能與自衝突開始以來預期的利潤率擴張。

The evolving situation in the Middle East drove a significant improvement in PEM sales volume and earnings towards the end of the first quarter. PEM delivered net sales of $1.7 billion and EBITDA of $36 million and 3% sequential volume growth, excluding the impact to volumes from our 2025 plant shutdowns. While the conflict in the Middle East remains fluid, and we hope for a peaceful resolution, we expect the supply disruptions could persist throughout 2026.

中東局勢的演變，使 PEM 在第一季末的銷售量與獲利顯著改善。PEM 實現淨銷售額 17 億美元與 EBITDA 3,600 萬美元，且在排除 2025 年工廠關閉對銷量的影響後，銷量較前一季成長 3%。儘管中東衝突仍在變動中，我們也期盼和平解決，但我們預期供應中斷可能會持續至 2026 年全年。

Turning to our HIP segment, sales volume and EBITDA were impacted by the unusually cold weather conditions in the first two months of the quarter. However, performance improved in March as the homebuilding season began along with the onset of milder weather.

再看 HIP 部門，第一季前兩個月異常寒冷的天候影響了銷售量與 EBITDA。然而，隨著住宅建築旺季展開及天氣轉趨和緩，3 月表現有所改善。

Excluding the impact of the ACI acquisition, HIP delivered 10% sequential sales volume growth, which drove net sales of $1 billion and EBITDA of $186 million. HIP sales and EBITDA in the first quarter were driven by continued solid infrastructure-related growth and seasonally stronger residential housing demand as compared to the fourth quarter of 2025.

排除 ACI 併購的影響，HIP 銷售量較前一季成長 10%，帶動淨銷售額達 10 億美元、EBITDA 達 1.86 億美元。HIP第一季的銷售與 EBITDA，主要受惠於與基礎建設相關的持續穩健成長，以及相較於 2025 年第四季季節性更強的住宅需求。

In addition to the intra-quarter earnings improvement from supply disruption in the Middle East and weather normalization, our first-quarter results benefited from our three-pillar profitability improvement plan, including delivering approximately $150 million of EBITDA uplift from footprint optimization and cost savings actions.

除中東供應中斷與天候回歸正常所帶來的單季內獲利改善外，我們第一季業績亦受惠於三大支柱獲利改善計畫，包括透過產能/據點最佳化與節省成本措施，帶來約 1.5 億美元的 EBITDA 提升。

While we still have some work to do to get our plant reliability all the way to where I would like it, I'm pleased with the progress that we have made to date and the trajectory of our reliability initiatives. Overall, we remain confident that our three-pillar profitability improvement plan will deliver the targeted $600 million EBITDA uplift in 2026.

雖然我們仍有一些工作要做，才能讓工廠可靠度完全達到我期望的水準，但我對目前為止取得的進展，以及我們可靠度提升計畫的發展趨勢感到滿意。整體而言，我們仍有信心三大支柱獲利改善計畫將在 2026 年達成目標的 6 億美元 EBITDA 提升。

Before I turn the call over to Steve, I want to provide some thoughts on our CFO transition. As you may have read on April 20, we announced that on June 15, Jon Baksht will join Westlake Corporation and Westlake Partners LP as Senior Vice President and Chief Financial Officer. Jon brings experience from the oil and gas, packaging and building products industries as well as investment banking to Westlake, and we look forward to him joining the company.

在我把電話會議交給 Steve 之前，我想就我們的財務長（CFO）交接提供一些想法。如您可能在 4 月 20 日所讀到的，我們宣布 Jon Baksht 將於 6 月 15 日加入 Westlake Corporation 與 Westlake Partners LP，擔任資深副總裁兼財務長。Jon 為 Westlake 帶來來自石油與天然氣、包裝與建材產業以及投資銀行的經驗，我們期待他加入公司。

On June 15, Steve Bender will transition to the role of Special Adviser and will continue to report to me as he supports the transition. We anticipate that Steve will participate in the second-quarter earnings call in August.

6 月 15 日，Steve Bender 將轉任特別顧問，並在支持交接期間持續向我匯報。我們預期 Steve 將參與 8 月的第二季財報電話會議。

And with that, I would now like to turn our call over to Steve to provide more detail on our financial results for the first quarter of 2026. Steve?

接下來，我想把電話會議交給 Steve，請他就 2026 年第一季的財務結果提供更多細節。Steve？

Thank you. Thank you very much, Jean-Marc, and good morning, everyone. In the first quarter of 2026, Westlake reported sales of $2.7 billion and a net loss of $100 million or $0.77 per share. which compares to a net loss of $33 million in the first quarter of 2025.

謝謝。非常感謝你，Jean-Marc，各位早安。2026 年第一季，Westlake 報告銷售額為 27 億美元，淨損為 1 億美元（每股淨損 0.77 美元），相較之下，2025 年第一季淨損為 3,300 萬美元。

Before I discuss the details of our segment results, I want to provide some high-level thoughts on the quarter. The decisive actions we took last year to improve our profitability begin to meaningfully deliver results in the first quarter of 2026.

在我討論各事業部門業績細節之前，我想先就本季提供一些高層次的看法。我們去年為提升獲利能力所採取的果斷行動，開始在 2026 年第一季明顯帶來成果。

Our footprint optimization actions significantly reduced PEM's fixed cost and returned our epoxy business to profitability for the first time since 2023. As a reminder, prior to these actions, the epoxy business was generating EBITDA losses of more than $100 million annually.

我們的據點（產能）優化行動大幅降低了 PEM 的固定成本，並使我們的環氧樹脂業務自 2023 年以來首次恢復獲利。提醒一下，在採取這些行動之前，環氧樹脂業務每年產生超過 1 億美元的 EBITDA 虧損。

In addition, we achieved substantial structural cost savings in the first quarter while also taking action to improve plant reliability. Taken together, our three-pillared profitability improvement plan benefited first-quarter earnings by approximately $150 million.

此外，我們在第一季實現了可觀的結構性成本節省，同時也採取行動提升工廠可靠性。綜合而言，我們三大支柱的獲利改善計畫使第一季盈餘約增加 1.5 億美元。

That said, we did face several headwinds during the first quarter, most of which we view as transitory. Despite a favorable mix shift away from export volumes, our average PVC resin sales price declined sequentially from the fourth quarter of 2025 due to price resets that occurred late in 2025.

不過，我們在第一季也面臨數項逆風，其中多數我們認為屬於暫時性。儘管產品組合有利地轉向減少出口量，我們的 PVC 樹脂平均銷售價格仍因 2025 年底發生的價格重設，而較 2025 年第四季呈現季減。

In addition, North American natural gas prices spiked in January and remained elevated through February as a result of unusually cold weather across much of the United States, creating an approximately $45 million EBITDA headwind for PEM compared to the first quarter of 2025. That same weather also delayed the start of the homebuilding season contributing to a year-over-year sales volume decline in our HIP business.

此外，由於美國多地出現異常寒冷天氣，北美天然氣價格在 1 月飆升並於 2 月維持高檔，與 2025 年第一季相比，為 PEM 帶來約 4,500 萬美元的 EBITDA 逆風。同樣的天氣也延後了住宅建築季節的開始，導致我們 HIP 業務的銷售量較去年同期下滑。

Moving to the specifics of our segment performance. HIP did see the effect of slower start to a homebuilding season with net sales in our Housing and Infrastructure Products segment of $1 billion, which were in line with the first quarter of 2025 as the January acquisition of ACI offset a 2% decline in average sales price and a 2% decline in sales volume, excluding the acquisition. Pipe and fittings continue to see strong sales volume driven by the infrastructure sector that was more than offset by declines in our exterior building products businesses and global compounds.

接著說明各事業部門的具體表現。HIP 確實受到住宅建築季節啟動較慢的影響；我們住房與基礎建設產品（HIP）事業部門的淨銷售額為 10 億美元，與 2025 年第一季大致持平，因 1 月收購 ACI 抵銷了（不含該收購）平均銷售價格下滑 2% 與銷售量下滑 2% 的影響。管材與管件在基礎建設領域帶動下，銷售量持續強勁，但被我們外部建材業務與全球配混料（compounds）的下滑所抵銷。

HIP EBITDA of $186 million decreased $17 million from the first quarter of 2025 due to a slight decline in EBITDA margin, largely due to lower average sales prices. When compared to the fourth quarter of 2025, HIP segment sales of $1 billion rose 10% by a 15% sequential increase in sales volume, including the ACI acquisition that more than offset a 5% decrease in average sales prices. The sequential sales volume growth was driven by seasonal higher demand for exterior building products and solid growth in global compounds.

HIP 的 EBITDA 為 1.86 億美元，較 2025 年第一季減少 1,700 萬美元，原因是 EBITDA 利潤率小幅下降，主要由於平均銷售價格較低。與 2025 年第四季相比，HIP 事業部門 10 億美元的銷售額成長 10%，係由銷售量季增 15%（包含 ACI 收購）所帶動，足以抵銷平均銷售價格下滑 5% 的影響。銷售量的季增主要來自外部建材產品的季節性需求提升，以及全球配混料的穩健成長。

Housing product sales of $788 million in the first quarter increased $21 million due to seasonal sales volume growth, particularly for siding and trim and roofing. Infrastructure products sales of $205 million in the first quarter of 2026, increased $71 million from the fourth quarter of 2025, primarily due to solid growth in global compounds, and the ACI acquisition.

第一季住房產品銷售額為 7.88 億美元，因季節性銷售量成長而增加 2,100 萬美元，尤其是壁板與飾條以及屋頂產品。2026 年第一季基礎建設產品銷售額為 2.05 億美元，較 2025 年第四季增加 7,100 萬美元，主要來自全球配混料的穩健成長以及 ACI 收購。

Moving to our PEMs segment. First quarter EBITDA of $36 million decreased by $9 million from the fourth quarter of 2025, largely as a result of a 34% higher natural gas price due to the impact of cold weather early in the quarter. Compared to the fourth quarter of 2025, PEM average sales price increased 3%, reflecting improved price realization for olefins, polyethylene, caustic soda toward the end of the quarter, while sales volumes increased 3%, excluding volumes associated with the 2025 plant shutdowns.

接著談我們的 PEM 事業部門。第一季 EBITDA 為 3,600 萬美元，較 2025 年第四季減少 900 萬美元，主要因本季初受寒冷天氣影響，天然氣價格上漲 34%。與 2025 年第四季相比，PEM 平均銷售價格上升 3%，反映烯烴、聚乙烯與燒鹼在季末的價格實現改善；同時，銷售量上升 3%（不含與 2025 年工廠停產相關的銷量）。

While higher North American natural gas costs impacted the early months of the first quarter, by the end of March, natural gas prices declined to their lowest levels since 2024 where they remained during April. As a result, we don't expect the transitory impact to PEM's first-quarter margins from higher natural gas prices to impact second-quarter earnings.

雖然北美天然氣成本上升影響了第一季前幾個月，但到 3 月底，天然氣價格已下滑至自 2024 年以來的最低水準，並在 4 月維持該水準。因此，我們預期較高天然氣價格對 PEM 第一季利潤率的暫時性影響，不會影響第二季盈餘。

For the first quarter of 2026, our utilization of the FIFO method of accounting resulted in a favorable pretax impact of $37 million compared to what earnings would have been reported on the LIFO method. This is only an estimate and has not been audited.

2026 年第一季，我們採用先進先出（FIFO）會計方法，相較於若採用後進先出（LIFO）方法所報告的盈餘，稅前帶來 3,700 萬美元的有利影響。此僅為估計值，且尚未經審計。

Now turning to the balance sheet and cash flow statements. We continue to maintain financial flexibility with a strong balance sheet as well as our long-standing commitment to a solid investment-grade credit rating. As of March 31, 2026, cash and investments were $2.5 billion and total debt was $5.6 billion with a staggered long-term fixed rate debt maturity schedule.

現在轉到資產負債表與現金流量表。我們持續以強健的資產負債表維持財務彈性，並長期致力於維持穩健的投資等級信用評等。截至 2026 年 3 月 31 日，現金與投資為 25 億美元，總負債為 56 億美元，且長期固定利率債務到期日採分散配置。

In April, we provided a notice to call the remaining $500 million of debt in the second quarter of 2026 that otherwise was scheduled to mature later this year. For the first quarter of 2026, net cash used for operating activities of $94 million includes approximately $50 million of cash outlays associated with the footprint optimization actions that we announced in 2025.

4 月，我們已發出通知，將於 2026 年第二季提前贖回剩餘 5 億美元的債務；該債務原本預定於今年稍晚到期。2026 年第一季，用於營運活動的淨現金流出為 9,400 萬美元，其中包含約 5,000 萬美元與我們於 2025 年宣布的據點（產能）優化行動相關的現金支出。

Our strong balance sheet provides us the financial flexibility to invest in growth initiatives such as ACI, and we have entered into a non-binding letter of intent to acquire a PVC and VC implant in Wilhelmshaven, Germany. This facility, which is located on the North Sea coast, benefits from its advantageous logistical infrastructure. We remain focused on pursuing additional opportunities to strategically deploy our balance sheet in order to create long-term value.

我們強健的資產負債表使我們具備投資於如 ACI 等成長計畫的財務彈性；此外，我們已簽署一份不具約束力的意向書，擬收購位於德國威廉港（Wilhelmshaven）的 PVC 與 VC 工廠。該設施位於北海沿岸，受惠於其有利的物流基礎建設。我們仍專注於尋求更多機會，以策略性運用資產負債表，創造長期價值。

Now let me provide guidance for your models. Given the slower-than-expected start to the homebuilding season and the significant increases in transportation and raw material costs, particularly for PVC resin, we now expect 2026 revenue and EBITDA margin for our HIP segment to be towards the lower end of our previously communicated range of $4.4 billion to $4.6 billion of revenue with EBITDA margin between 19% and 21%, excluding identified items.

接下來我提供一些指引供各位建模。鑑於住宅建築季節啟動較預期緩慢，以及運輸與原物料成本（尤其是 PVC 樹脂）大幅上升，我們目前預期 2026 年 HIP 事業部門的營收與 EBITDA 利潤率將落在先前溝通區間的較低端：營收 44 億至 46 億美元，EBITDA 利潤率 19% 至 21%（不含已識別項目）。

While we expect to pass these cost increases through, the timing of changes in cost and sales prices could create a headwind in the near term. Expected 2026 total capital expenditures for the company are still expected to be $900 million, which is approximately $100 million lower than last year and in line with our annual depreciation. We continue to expect cash interest expense to be approximately $215 million.

雖然我們預期將把這些成本上升轉嫁出去，但成本與銷售價格變動的時間差，可能在短期內形成逆風。公司 2026 年預計總資本支出仍為 9 億美元，約較去年低 1 億美元，並與我們年度折舊水準一致。我們仍預期現金利息費用約為 2.15 億美元。

Now with that, I'll turn the call over to Jean-Marc to provide a current outlook for the business. Jean-Marc?

那麼接下來，我將把電話交給 Jean-Marc，請他提供對業務的最新展望。Jean-Marc？

Thank you, Steve. The impact of the conflict in the Middle East and global feedstock and energy cost serves as a powerful reminder of one of Westlake's foundational strength: our globally advantaged feedstock and energy position in North America, where approximately 85% of our products are manufactured. The strategic value of our North American production capacity and globally advantaged cost position has arguably never been greater.

謝謝你，Steve。中東衝突以及全球原料與能源成本的影響，有力地提醒我們 Westlake 的一項基礎優勢：我們在北美具備全球具競爭力的原料與能源優勢地位，約 85% 的產品在北美製造。我們的北美產能之策略價值，以及全球具競爭力的成本地位，可以說從未如此重要。

In addition, the combination of investments, major turnarounds and restructuring actions that we made are now positioning us to benefit from more reliable production to capture the current upturn in PEM profitability and better serve our customers. While the commercial environment for PEM has improved significantly since our last earnings call in February, we remain laser-focused on achieving the full benefits from our profitability improvement plan. We are pleased with the progress that we have made to date, improving our profitability, but we recognize that we must remain disciplined with respect to cost in an increasingly inflationary environment.

此外，我們所進行的投資、重大歲修（turnarounds）與重整措施的組合，正使我們能受益於更可靠的生產，以掌握目前 PEM 獲利能力回升的契機，並更好地服務客戶。雖然自我們 2 月上次財報電話會議以來，PEM 的商業環境已顯著改善，但我們仍高度聚焦於實現獲利改善計畫的全部效益。我們對迄今為止在提升獲利方面所取得的進展感到滿意，但也認知到在通膨壓力日益升高的環境下，我們必須在成本方面保持紀律。

Turning to our outlook for sales volume and pricing. We have a constructive view on near-term trends. As I discussed earlier, global supply chain disruptions and elevated global energy prices are driving meaningful price increases for polyethylene, PVC resin and other products in our PEM segment. Concurrently, supply concerns are prompting global customers to source more material from North America in response to the conflict, which is supporting higher PEM sales volume and improved plant operating rates.

接著談我們對銷售量與定價的展望。我們對短期趨勢持建設性看法。如我先前所述，全球供應鏈中斷與居高不下的全球能源價格，正推動我們 PEM 部門的聚乙烯、PVC 樹脂及其他產品出現顯著的價格上漲。同時，供應疑慮促使全球客戶因應衝突而從北美採購更多材料，這支撐了更高的 PEM 銷售量與更佳的工廠開工率。

Shifting to HIP, mortgage rates and increased building costs could place additional pressure on housing affordability. While it is too early to fully assess how this dynamic will impact HIP's building product sales volume, forward-looking indicators such as single-family housing permits and start add to the uncertainty.

轉到 HIP，房貸利率上升與建築成本增加，可能會對住房可負擔性造成額外壓力。雖然現在要全面評估此一動態將如何影響 HIP 的建材產品銷售量仍為時過早，但單戶住宅建照與開工等前瞻性指標增加了不確定性。

In this housing market, our building products business continues to benefit from a diversified product offering and broad national distribution, which provides builders with the products they need, when and where they need them. In global compounds, we are pleased with the performance of the recently acquired ACI business, which has strengthened our position in the fast-growing, high-voltage wire and cable market. This market is seeing significant demand growth driven by electric vehicles and data centers.

在此住房市場中，我們的建材產品業務持續受益於多元化的產品組合與廣泛的全國性通路，能在建商需要的時間與地點提供所需產品。在全球複合材料方面，我們對近期收購的 ACI 業務表現感到滿意，該業務強化了我們在快速成長的高壓電線電纜市場中的地位。此市場的需求正因電動車與資料中心而顯著成長。

Meanwhile, HIP's pipe and fittings business continues to deliver double-digit sales volume growth, supported by sustained strength in infrastructure spending. Beyond traditional municipal infrastructure demand, we are seeing increasing contribution to sales volume growth, driven by cooling water needs from the data center build-out underway across North America. We expect this trend to continue through the rest of the year as an offset to uncertainty in the North American new residential construction market.

同時，HIP 的管材與管件業務持續實現兩位數的銷售量成長，受惠於基礎建設支出維持強勁。除傳統的市政基礎建設需求外，我們也看到由北美各地正在進行的資料中心建置所帶動的冷卻用水需求，對銷售量成長的貢獻日益增加。我們預期此趨勢將在今年剩餘期間持續，作為抵消北美新建住宅施工市場不確定性的因素。

On the cost front, we are aggressively working to pass through the increases in costs being driven by Middle East supply disruption and elevated fuel prices. Longer term, continued infrastructure investment, combined with over a decade of housing and the building, continues to support a compelling growth outlook for HIP.

在成本方面，我們正積極努力將中東供應中斷與燃料價格高企所推升的成本上漲轉嫁出去。從較長期來看，持續的基礎建設投資，加上逾十年的住房與建築（需求/活動），仍持續支撐 HIP 具吸引力的成長展望。

Taken together, our outlook for the company's 2026 earnings has improved meaningfully since our last earnings call. While the conflict in the Middle East could result in global supply change disruptions extending to the end of the year or beyond, we will remain focused on controlling what we can control, including delivering the full $600 million of EBITDA uplift from our three-pillar profitability improvement plan. And we will maintain our disciplined approach to capital allocation, while preserving our investment-grade rated balance sheet.

綜合而言，自上次財報電話會議以來，我們對公司 2026 年獲利的展望已明顯改善。雖然中東衝突可能導致全球供應鏈中斷延續至年底或更久，我們仍將專注於控制我們能控制的事項，包括落實三大支柱獲利改善計畫所帶來的 6 億美元 EBITDA 提升的全部效益。同時，我們將維持資本配置的紀律性作法，並維持投資級評等的資產負債表。

Thank you very much for listening to our first-quarter earnings call. I will now turn the call back over to Jeff. Jeff?

非常感謝各位收聽我們第一季財報電話會議。接下來我將把電話交回給 Jeff。Jeff？

Thank you, Jean-Marc. Before we begin taking questions, I'd like to remind listeners that our earnings presentation, which provides additional clarity into our results, is available on our website. and that a replay of this teleconference will be available approximately two hours after the call has ended. We will now take questions.

謝謝你，Jean-Marc。在開始提問之前，我想提醒各位聽眾，我們的財報簡報（可提供對業績更清楚的說明）已公布於我們的網站上；此外，本次電話會議的重播將在會議結束約兩小時後提供。現在我們開始提問。

(Operator Instructions) Patrick Cunningham, Citi.

（接線員指示）Patrick Cunningham，花旗。

Can you help us unpack a little bit more the PEM results down sequentially? You had material benefits from the profitability improvement plan, PE and caustic prices were up. I guess, first, can you help size the headwind from PVC price margin declines and whether or not there was anything else going on with operating reliability or any stranded costs from some of the closures?

你能否協助我們更進一步拆解一下 PEM 的業績為何較前一季下滑？你們從獲利改善計畫中獲得了實質效益，PE 與燒鹼價格也上漲。我想先問，PVC 價格/利差下滑帶來的逆風大概有多大？另外，營運可靠性是否還有其他狀況，或是因部分關閉而產生任何閒置成本（stranded costs）？

Yeah. Patrick. And I would say that certainly, the price resets that we saw at the end of the year were certainly impactful across the product stream. And so I would say, and particularly, the increase that we've seen in PVC resin have not been fully catching up with some of the increases that we've seen in associated costs. Especially, I would note the elevated natural gas cost that we saw in January and February.

是的。Patrick。我會說，去年年底我們看到的價格重設，確實對整體產品組合產生了顯著影響。因此我會說，尤其是我們看到的 PVC 樹脂漲價，尚未完全追上我們在相關成本上所看到的一些上升。特別是，我要指出我們在 1 月與 2 月看到的天然氣成本偏高。

So while we've seen price increases in polyethylene, epoxy, and PVC, I would say, certainly, looking to continue to capture the value that we think that PVC represents and we certainly have not had the chance to fully recognize that throughout the entire quarter. But I would say that we've seen improved reliability and operability of the business. And so I'm improved. We're not to where we'd like to be at this stage, but we're making good progress as we move forward.

因此，雖然我們已看到聚乙烯、環氧樹脂與 PVC 的價格上漲，但我會說，我們確實希望持續掌握我們認為 PVC 所代表的價值，而我們在整個季度中確實還沒有機會完全反映出來。不過我也會說，我們已看到業務的可靠性與可運轉性有所改善。因此我有所改善。我們目前還未達到希望的水準，但隨著往前推進，我們正取得良好進展。

Understood. And then just on the underlying outlook for the HIP business, what are your expectations for pure price this year, given some of the higher-priced PVC you're going to be pulling through? Have you gone out with additional pricing ahead of the construction season? And is any of that baked into your outlook?

了解。那麼回到 HIP 業務的基本展望，考量你們將會消化一些較高價格的 PVC，你們對今年純價格（pure price）的預期為何？你們是否在施工旺季前再推出額外的漲價？而這些是否已反映在你們的展望之中？

Yeah. So good question. We have announced price increases to not only offset the increase in PVC resin, but also transportation costs. Certainly, fuel costs have also risen. So our price increases that we have already announced in the HIP segment have already reflected the cost that we expect to incur for PVC resin as it works its way through the manufacturing process and also to reflect elevated transportation costs driven by higher fuel prices.

是的。這是個好問題。我們已宣布漲價，不僅是為了抵消 PVC 樹脂上漲，也包括運輸成本。燃料成本當然也上升了。因此，我們在 HIP 部門已宣布的漲價，已反映我們預期在 PVC 樹脂隨製造流程逐步傳導時將承擔的成本，也反映由燃料價格上升所推動的運輸成本偏高。

But nevertheless, that will take a little while, a few months, let's say, to work its way fully through each of the various material product streams.

不過，這仍需要一些時間，譬如說幾個月，才能在各個不同的材料產品線中完全傳導到位。

Bhavesh Lodaya, BMO.

Bhavesh Lodaya，BMO。

Just back to the PEM segment, you called out transitory impacts that happened in the first quarter. If you look at, again, the fourth-quarter and the first-quarter difference, there was a $150 million benefit which you saw from your actions, which did not show up.

再回到 PEM 部門，你提到第一季出現了一些短暫性影響（transitory impacts）。如果看第四季與第一季的差異，你們的行動本應帶來 1.5 億美元的效益，但並沒有反映出來。

Would you say that transitory impacts are roughly equal to that $150 million? And in other words, is the base level of earnings for 2Q -- is the starting point closer to, call it, like a $200 million level from which you will see additional benefits from margin improvements?

你會說這些短暫性影響大致相當於那 1.5 億美元嗎？換句話說，第二季的獲利基礎水準——起點是否更接近大約 2 億美元的水準，並在此基礎上再看到利差改善帶來的額外效益？

Yeah. So I guess what I would say is certainly recognizing with the elevated cost that we had in natural gas in the first quarter of a $45 million headwind was significant, but transitory. And I would say the price increase that we've seen in all of our products from be it polyethylene, PVC and epoxy should have significant benefits as those have been announced in the first quarter, but the full effect of those really translate into real value in the second quarter.

是的。我想我會說，第一季天然氣成本偏高所帶來的 4,500 萬美元逆風確實很顯著，但屬於短暫性。另外，我們在所有產品（無論是聚乙烯、PVC 或環氧樹脂）所看到的漲價，應會帶來顯著效益；這些漲價在第一季已宣布，但其完整效果將在第二季真正轉化為實質價值。

As I mentioned earlier, we've seen improved reliability as we've made progress on our three-pillar strategy. The $150 million benefit that we achieved in the first quarter, certainly, it was largely attributable to PEM, but not exclusively so. So we've made cost reductions, of course, that affect both segments of the business.

如我先前提到的，隨著我們在三大支柱策略上取得進展，我們已看到可靠性有所提升。我們在第一季實現的1.5億美元效益，確實主要歸因於PEM，但並非完全如此。因此，我們當然也進行了成本削減，這會影響業務的兩個部門。

Certainly, the optimization of our footprint, certainly, is directly attributable to the PEM segment. And certainly, some of the improvements we've seen in operability also are attributable to the PEM segment. But I would say we do see significant benefits accruing as a result of these price nominations and realizations that we expect in the second quarter.

當然，我們產能布局的最佳化，確實可直接歸因於PEM部門。而且我們在可操作性方面看到的一些改善，也確實可歸因於PEM部門。但我會說，我們確實看到因第二季預期的這些價格提報與實現而帶來的顯著效益正在累積。

Got it. And then particularly on your PVC outlook, you have leveraged both from higher operating rates as well as pricing from PVC here. Could you share an outlook on these two metrics? How much could weights move higher in 2Q or 3Q? And what are your expectations for PVC pricing from here?

了解。另外，特別就你們對PVC的展望而言，你們同時受惠於較高的開工率以及PVC的定價。你能分享一下這兩項指標的展望嗎？第二季或第三季的產量可能提高多少？以及你們對接下來PVC價格的預期為何？

Yeah. As a result of some of the optimization actions that we took last year, we certainly have elevated the operating rates of our plants. Certainly, we had some planned maintenance at one of our units in the first quarter.

是的。由於我們去年採取了一些最佳化行動，我們確實提高了工廠的開工率。當然，我們在第一季對其中一套裝置進行了部分計畫性維修。

But I would say operating rates throughout the first quarter were in the mid-80s, and we expect that as the construction season begins to start now with better weather, and I do expect that we'll see elevated demand levels for PVC and construction activities; that in the context of recognizing that housing starts have been somewhat lower than -- had been earlier forecast by the consultants.

但我會說，整個第一季的開工率大約在80%中段，我們預期隨著天氣轉好、施工季節開始，我確實預期我們會看到PVC與建築活動的需求水準提升；同時也要認知到，新屋開工數一直略低於顧問先前的預測。

But we do expect that with the price initiatives that we've taken in PVC and the increase in construction and repair and modeling activities that we do expect to see improvements across only the core vinyls chain but across the entire PEM segment.

但我們確實預期，隨著我們在PVC採取的價格措施，以及建築、維修與改造活動的增加，我們預期不僅在核心乙烯基產業鏈上會看到改善，也會在整個PEM部門看到改善。

Vincent Andrews, Morgan Stanley.

Vincent Andrews，摩根士丹利。

Wondering if you could just give us a little bit of direction on HIP for 2Q. Just sounds like there's going to be a little bit of a lag between the higher PVC and so forth costs coming through versus your ability to price. So if you could just give us a sense on what that's going to do on the margin side?

想請你們就第二季HIP提供一些方向指引。聽起來較高的PVC等成本傳導進來，與你們提價能力之間會有一些時間落差。所以能否請你們說明這對毛利率端會造成什麼影響？

And then maybe also help us understand, there was a mention about the season getting off to a slow start. So how did April go? And how does the order book look so far for the second quarter? So that we can hopefully get our numbers in a good place for 2Q.

另外也請協助我們理解，先前提到本季開局偏慢。那麼4月表現如何？以及到目前為止第二季的訂單簿看起來如何？希望我們能把第二季的預估數字放在更合適的位置。

Yeah. So good question, Vincent. And I would say that the order book looks very good as we see the second quarter begin to start from a volumes perspective. But to your point, with the elevated PVC pricing we see coming through the channel and while we've announced price increases in our HIP segment to address those higher PVC resin prices as well as transportation costs, there could be a month or two lag between the realization of those price nominations that we've made in the market and the roll forward of PVC resin prices.

好的。問題很好，Vincent。我會說，從出貨量角度來看，隨著第二季開始，我們看到訂單簿非常不錯。但如你所說，隨著我們看到較高的PVC價格沿著通路傳導，而我們也已在HIP部門宣布調價以因應較高的PVC樹脂價格以及運輸成本，在我們於市場上提出的這些調價提報被實際落地，以及PVC樹脂價格往前推進之間，可能會有一到兩個月的落差。

So there could be some headwind in that second quarter as we see the price that we've announced in PVC in the first quarter worked their way through into the PEMS segment before they get full traction of their price announcements made in the first quarter, but get them fully worked in in the second quarter.

因此，在第二季可能會有一些逆風：我們在第一季宣布的PVC調價會逐步傳導到PEMS部門；在第一季所宣布的調價尚未完全發揮效果之前，會先在第二季把它完整反映進來。

So is it fair to say then that we'll see the lowest margin in 2Q? And then by 4Q, you'll be high enough to get yourself back to the low end of the margin guidance for the full year? Is that the right way to think about it?

那麼這樣說是否合理：我們會在第二季看到最低的毛利率？然後到第四季，你們會回升到足以回到全年毛利率指引區間的低端？這樣理解對嗎？

I would say the fourth quarter seasonally is typically a slower season, but I would say that the front half of the second quarter, we'll see the full impact of some of the lag in the back half of the second quarter. We'll see the benefit of some of the benefits of the price increase that the HIP segment have announced. I think we get the full benefit of all that in the third quarter, but the fourth quarter typically has a seasonal slowdown just because of the weather dynamics and is typically one of our lower-margin and volume quarters.

我會說第四季在季節性上通常是較淡的季節；但我會說，在第二季前半段，我們會看到落差影響的完整反映，而在第二季後半段，會看到HIP部門所宣布調價帶來的一些效益。我們會在第三季獲得全部效益。但第四季通常會因天候因素而出現季節性放緩，通常也是我們毛利率與出貨量較低的季度之一。

David Begleiter, Deutsche Bank.

David Begleiter，德意志銀行。

Jean-Marc and Steve, just on polyethylene, you got the $0.30 in April. What's your confidence level in getting some portion of all of the announced $0.20 per pound increase for me?

Jean-Marc和Steve，關於聚乙烯，你們在4月拿到了每磅0.30美元的漲幅。你們對於能拿到已宣布每磅0.20美元漲價中的一部分，有多大信心？

Well, I'd say that, David, that we certainly have been able to achieve that $0.30, as you noted in April, and it's still early days in May. If you think back, the market has been able to absorb very, very significant price increases going back to the beginning of this year. And I would say it's still a little bit early days in May to call the May increase.

嗯，我會說，David，正如你在4月所指出的，我們確實已經能夠實現那每磅0.30美元的漲幅，而5月目前仍算是初期。如果回想一下，市場自今年年初以來已能吸收非常、非常顯著的漲價。我會說，現在要判斷5月的漲幅是否能完全落地，仍稍微早了一點。

But if you think about where the price levels are today relative to recent history going back to '21 or so, we're still below those price increases we had in 2021. And the market was able to absorb those prices in '21. So what we're looking for is to see where demand levels are. But I would say we're watching the market, but we're still pushing forward with price increases that we see that are reflective in the marketplace.

但如果你看看今天的價格水準相對於近期歷史（回到大約2021年），我們仍低於2021年的那些價格水準。而市場在2021年是能夠吸收那些價格的。所以我們要觀察的是需求水準落在什麼位置。但我會說，我們在關注市場，同時也持續推進我們認為能在市場上反映出來的漲價。

Very good. And just on PVC, are you increasing your export activity levels to take advantage of some of the spot opportunities we've seen in the marketplace?

很好。另外就PVC而言，你們是否在提高出口活動水準，以把握我們在市場上看到的一些現貨機會？

Yeah, good question. The -- you are right. Price increase in PVC, I mean, we've seen a steady increase in PVC export prices. They went to a peak a few weeks ago. They're now coming down a little bit, but still much higher than what they were last year.

是的，問題很好。你說得沒錯。PVC的漲價方面，我們確實看到PVC出口價格穩步上升。幾週前達到高峰。現在略有回落，但仍遠高於去年。

So you are correct. I mean we are -- with increased operational operating rates. And we are now increasing as much as we can PVC supply to take opportunities and to sell our volume in export markets where there is some good deal to be made.

所以你說得對。也就是說，隨著營運開工率提高，我們現在正盡可能增加PVC供應，以把握機會，並在出口市場上有不錯交易可做的地方銷售我們的量。

Frank Mitsch, Fermium Research LLC.

Frank Mitsch，Fermium Research LLC。

And Steve, let me offer you some early birthday wishes. And perhaps the second quarter starting out as a very nice birthday present for your last quarter as CFO. And again, thanks for all your help in that regard.

Steve，先提前祝你生日快樂。也許第二季的開局，會成為你作為CFO最後一季的一份很棒的生日禮物。再次感謝你在這方面提供的所有協助。

I was wondering if you could offer some qualitative commentary with respect to the operating rates that you were able to realize in the PEM business in the first quarter and how your facilities are operating so far here in the second quarter?

我想請你就第一季你們在PEM業務中能實現的開工率，以及你們的設施在第二季到目前為止的運作情況，提供一些定性的評論。

Yeah. So Frank, thank you very much for those comments. I would say that in the polyethylene business, we're running full rates, as you would guess, demand levels seem to be very good. And even though we've seen significant price increases, operating rates are operating at full rates.

好的。Frank，非常感謝你的這些話。我會說，在聚乙烯業務方面，我們正以滿載運轉，正如你所預期的，需求水準看起來非常好。即使我們已看到顯著的漲價，開工率仍維持在滿載。

In the PVC space, PVC rates are beginning to raise simply because we've optimize the operating rates having shuttered a number of sites last year and moved that production opportunity over to other existing sites. So operating rates in the PVC space were in the mid-80s.

在PVC方面，PVC的開工率開始上升，主要是因為我們在去年關閉了多個據點，並把生產機會轉移到其他既有據點，從而最佳化了開工率。因此PVC的開工率大約在80%中段。

And I expect that to begin to elevate as we work our way through into second quarter and third quarter, which is more peak-wide construction season. And some of our operating rates in our caustic and chlorine operations to support PVC.

我預期，隨著我們進入第二季與第三季（這是更接近建築旺季的時段），這將開始逐步上升。同時，我們在燒鹼與氯氣業務的部分開工率也會提高，以支援 PVC。

Terrific. And as you think about higher pricing levels having an impact on working capital, what's your -- what are you working at capital expectations and impacts on free cash flow in 2026?

太好了。另外，當你們考量較高的價格水準對營運資金的影響時，你們對 2026 年的營運資金預期，以及對自由現金流的影響是什麼？

Yeah. Well, certainly, I do expect some of these higher prices, we'll see an increase in the receivables side. But when you recognize that gas and ethane remain very moderate and, frankly, at pretty low levels, I do expect the second quarter to generate free cash flow as a result.

是的。當然，我確實預期其中一些較高的價格會使應收帳款端增加。但考量到天然氣與乙烷仍然相當溫和，而且坦白說處於相當低的水準，我確實預期第二季將因此產生自由現金流。

Josh Spector, UBS.

Josh Spector，瑞銀（UBS）。

Two things I want to just clarify here is first, just on the cost savings points. I think the $150 million you're characterizing that as year-over-year, can you talk about what that is sequentially? And does that build sequentially? Or are we at the full run rate today?

我想先釐清兩點。第一，關於成本節省的部分。我理解你把 1.5 億美元描述為年對年，能否談談按季來看是多少？而且它會按季逐步增加嗎？還是我們今天就已經在完整的年化運行水準（full run rate）？

Yeah. That $150 million is a year-over-year result. And certainly, when we think about the contribution that we've seen, they're coming from all three of those respective pillars. So if you recall, we generated a significant amount of savings in the fourth quarter. So the $150 million full-year result is well over $100 million above and beyond what we generated in the fourth quarter.

是的。那 1.5 億美元是年對年的結果。而且當我們思考目前看到的貢獻時，它們來自那三個支柱的各個面向。所以如果你還記得，我們在第四季產生了相當可觀的節省。因此，全年 1.5 億美元的結果，比我們在第四季所產生的金額還要多出遠超過 1 億美元。

Okay. But does that sequentially improve then into 2Q? Or are we just saying $150 million times four, that's the $600 million that you're at?

好的。但那麼它在第二季會按季改善嗎？還是只是說 1.5 億美元乘以四季，就是你們所處的 6 億美元水準？

And I did want to ask a follow-up just related with the pricing side on PVC. I mean, considering we're talking about pretty decent lags in pricing, I assume now in early May, you have a pretty good idea of the PVC price you're going to realize in 2Q. Can you give us some guidance about what that increase would be since there seems to be a pretty stark disconnect with some of the indexes that we're watching?

另外我也想追問一個與 PVC 定價相關的問題。我的意思是，考量到我們談到定價有相當不錯的落後期（lag），我假設現在在 5 月初，你們對第二季將實現的 PVC 價格應該已經很有把握。你能否提供一些指引，說明那個漲幅大概會是多少？因為看起來與我們追蹤的一些指數之間存在相當明顯的落差。

Yeah. Back to your earlier portion of your question on the cost savings initiatives in our three-pillar strategy, we do expect that we'll be able to achieve a relative portion over the course of the remaining three quarters of the year and fully achieve that $600 million savings.

是的。回到你先前關於我們三支柱策略中成本節省措施的問題，我們確實預期在今年剩餘三個季度的過程中，能夠達成相當比例的進度，並最終實現 6 億美元的節省。

As it relates to the pricing initiatives, you're right, we announced a series of price increases, both in PVC as well as in polyethylene. And as I say, we expect that those will be very impactful in the second quarter. So in the first quarter, we achieved in PVC, a total of $0.01 in January, $0.02 in February, $0.03 in March.

至於定價措施，你說得沒錯，我們宣布了一系列的漲價，PVC 與聚乙烯都有。如我所說，我們預期這些在第二季會非常有影響力。因此在第一季，我們在 PVC 方面，1 月總共實現了 0.01 美元、2 月 0.02 美元、3 月 0.03 美元。

We've announced and achieved $0.05 in April, and we have $0.04 nominated out for May, still looking to achieve the full $0.10 that we had earlier nominated. $0.05 achieved in April and $0.04 right now, but looking with customers to achieve that full $0.10 that we announced earlier in the month of March for April and May.

我們已宣布並在 4 月實現了 0.05 美元，而 5 月我們提報（nominated）了 0.04 美元，仍在努力達成先前提報的完整 0.10 美元——4 月已實現 0.05 美元，目前是 0.04 美元，但我們正與客戶合作，力求達成我們先前在 3 月宣布、適用於 4 月與 5 月的完整 0.10 美元漲幅。

John Roberts, Mizuho.

John Roberts，瑞穗（Mizuho）。

Are you seeing any shift in the destinations for US export caustic and export vinyls? And do you think the pushback in pricing that you're seeing is some demand destruction going on?

你們是否看到美國出口的燒鹼與出口乙烯基產品（vinyls）的目的地有任何轉移？另外，你們看到的定價反彈（pushback）是否反映出某種需求被破壞（demand destruction）正在發生？

I'd say that what we've seen, John, is actually reasonably good demand levels for caustic. Just to remind you, we announced two price increases; one in December last year; one in January of this year, totaling $140 million -- $140.

John，我會說我們看到燒鹼的需求水準其實相當不錯。提醒一下，我們宣布了兩次漲價：一次在去年 12 月，一次在今年 1 月，合計 1.4 億美元——1.4 億。

And so I'd say that to date, I'd say we've achieved the greater portion of that first announcement that we announced in December. And the indices that we track seem to indicate we'll get a greater -- a pretty good portion of that second price increase. So I'd say that demand continues to be reasonably good at this stage of the quarter.

所以我會說，截至目前，我們已經實現了去年 12 月第一次公告中較大部分的漲幅。而我們追蹤的指數似乎顯示，我們也能取得第二次漲價中相當——相當不錯的一部分。因此我會說，在本季目前這個階段，需求仍然相當不錯。

And as I say, demand, fundamentally, is stable. And I would say, ramping up, from a destination perspective, as you would imagine, logistics have been jockeying around as a result of the conflict in the Gulf and many of our customers are being well served, but I can't speak specifically to all those individual customers.

而且如我所說，從基本面來看，需求是穩定的。就目的地而言，我會說正在回升；如你所想像，因為海灣地區的衝突，物流一直在重新調整，許多客戶都獲得良好服務，但我無法針對每一位個別客戶做具體說明。

Kevin McCarthy, Vertical Research Partners.

Kevin McCarthy，Vertical Research Partners。

Can you elaborate on your letter of intent to acquire VYNOVA's vinyls plant in Germany? Maybe you could just talk a little bit about potential cost timing and the fit with your existing assets, including the legacy Vinnolit assets?

你能否進一步說明你們擬收購 VYNOVA 在德國乙烯基工廠的意向書（letter of intent）？也許你可以談談潛在成本的時間點，以及它與你們既有資產（包括既有的 Vinnolit 資產）的契合度？

Yeah. Well, good question, Kevin. And we've entered into this non-binding letter of intent with the insolvency administrator in Germany, and we think it fits very well potentially. As I say, it's still non-binding and so subject to a lot of contingencies, of course. But it does have access to a deep sea dock, which allows us access to low-cost potential feedstocks, which could be a significant advantage in servicing the European markets.

是的。Kevin，這是個好問題。我們已與德國的破產管理人簽訂這份不具約束力的意向書，我們認為它在潛在上非常契合。如我所說，它仍是不具約束力，因此當然仍取決於許多前提條件。但它可使用深水碼頭，這讓我們能取得低成本的潛在原料，這在服務歐洲市場時可能是一項顯著優勢。

In terms of talking about value, it's still preliminary at this stage, and so it's too early to get into evaluation at this stage.

至於價值的討論，目前仍屬初步階段，因此現在談評估還太早。

Understood. Then as a second question, was your PEM segment EBIT positive in the month of March? I wouldn't normally ask you about monthly trends, but I imagine March was night and day versus the prior month. So perhaps you can give us some sense for the exit velocity of earnings, so to speak, as you move through the quarter?

了解。那第二個問題，你們 PEM 事業部在 3 月單月的 EBIT 是否為正？我通常不會問你們月度趨勢，但我想 3 月相較前一個月應該是天壤之別。所以也許你可以讓我們對本季往後走時的獲利「退出速度」（exit velocity）有一些概念？

Yeah. It was, as you would guess, very positive. And given the pricing initiatives that we've got out in epoxy, PVC and polyethylene, I expect the improvements to continue to be quite strong as we enter into the second quarter with, again, the ability to recognize and realize those price announcements that we announced during the first quarter.

是的。如你所猜測，確實非常正面。而且考量到我們在環氧樹脂、PVC 與聚乙烯所推出的定價措施，我預期當我們進入第二季時，改善將持續相當強勁；同樣地，我們也有能力去認列並實現我們在第一季期間所宣布的那些漲價。

Arun Viswanathan, RBC Capital Markets.

Arun Viswanathan，RBC 資本市場（RBC Capital Markets）。

I guess I wanted to try and maybe have a rough idea on if you could help us frame out Q2. So it looks like you'll get maybe some incremental extra cost reductions if you're expecting maybe $600 million for the year. I'm not sure if that actually does go up in Q2. Would it be $20 million or $30 million higher in Q2 versus Q1?

我想嘗試對第二季有個大致概念，看看你能否協助我們建立框架。看起來如果你們預期全年 6 億美元，第二季可能會有一些額外的成本削減增量。我不確定第二季是否真的會上升。第二季相較第一季會高出 2,000 萬或 3,000 萬美元嗎？

And then secondly, the PE, I think you have 2.5 billion pounds of capacity. So can we just apply that on the $0.30 for maybe $150 million to $200 million uplift there. And then PVC also on your 5.5 billion pounds, I'm getting maybe like a $75 million uplift.

第二點，聚乙烯（PE），我想你們有 25 億磅的產能。那我們是否可以用 0.30 美元來套算，得到大約 1.5 億到 2 億美元的上行？另外 PVC 以你們 55 億磅來看，我算出來大概是 7,500 萬美元的上行。

So HIP, I think, would be down maybe on higher costs as you flow through those items and that maybe cancel out the PVC increase. So maybe we're up sequentially on the order of $200 million to $300 million. Is that -- am I somewhere in the ballpark? Or how should we think about framing out the difference between Q1 and Q2?

所以我想 HIP 可能會因為較高成本、隨著這些項目反映出來而下滑，並且可能抵消 PVC 的增加。因此我們按季可能上升約 2 億到 3 億美元的幅度。這樣——我是否大致在合理範圍內？或者我們應該如何看待與建立第一季到第二季差異的框架？

Yeah. I think directionally, as you think about the price combinations and the volumes of production that we have and the demand levels that we're seeing that directionally, you're in the -- you're moving directionally in the right direction. I would say that the headwind we do expect with HIP to be reflective of some of the higher PVC pricing moving through in the first portion of the second quarter.

是的。我認為從方向性來看，當你考量我們目前的價格組合、產量以及我們看到的需求水準時，你的判斷方向是對的——你正朝著正確的方向前進。我會說，我們確實預期 HIP 會面臨一些逆風，反映的是第二季前半段較高的 PVC 價格逐步傳導所帶來的影響。

But I do think we'll get price realization in the back half of that second quarter as we've already made those announcements to deal with resin costs and transportation costs. But recognizing that we've got a number of price announcements, including PVC, polyethylene and epoxy, we should see significant traction in the second quarter. And so I think directionally, the way you're thinking about it is correct.

但我確實認為，在第二季後半段我們會實現價格落地，因為我們已經發布了相關漲價公告，以因應樹脂成本與運輸成本。不過要注意的是，我們已經有多項漲價公告，包括 PVC、聚乙烯與環氧樹脂，因此我們應該會在第二季看到顯著的推進成效。所以我認為，你的思考方向是正確的。

Okay. And then if I could just ask, as you look into the second half, what is the durability of this pricing? Have you seen any larger-scale closures? Do you expect any -- maybe -- the chlorine chain was not necessarily impacted as much because of coal-based production in China.

好的。接著如果我可以再問一下，當你展望下半年時，這波定價的持續性如何？你們有看到任何較大規模的停產/關閉嗎？你們是否預期會有任何——也許——氯產業鏈未必受到那麼大的影響，因為中國有以煤為基礎的生產。

So do you expect conditions to revert back to normal shortly after the Strait reopens? Or what's the outlook in the Chlor-alkali space with regards to some of these constraints? Was it just not affected as much?

所以你們是否預期在海峽重新開放後不久，狀況就會回到正常？或者在氯鹼（Chlor-alkali）領域，針對這些限制因素的展望如何？是不是其實受影響沒那麼大？

Yeah, you can see from our comments that we expect the impact of this conflict in the Gulf that could persist all the way through the end of the year. And so it's unclear exactly what price direction we may see as the conflict takes whatever path it chooses to take.

是的，從我們的評論你可以看出，我們預期這場海灣衝突的影響可能會一路持續到年底。因此，隨著衝突走向取決於其後續發展路徑，我們也不清楚價格方向最終會如何演變。

But I would say that the PVC core vinyls chain was lesser impacted by this conflict than the polyolefins chain has been. And so we do expect to see some meaningful improvement in those chains that have been more directly impacted.

但我會說，PVC 的核心乙烯基（vinyls）產業鏈受這次衝突的影響，比聚烯烴（polyolefins）產業鏈要小。因此，我們確實預期那些受到更直接影響的產業鏈，將會出現一些有意義的改善。

Yeah. I mean one additional thing is if you look into the Chlor-alkali and specifically on the PVC side, and as you remember, the price was pretty much set by China last year. And it continues to be so, but in a different way, about 25% to 30% of the Chinese capacity as far as PVC is concerned, it's coming from using NAFTA and the rest is a carbide base. So all the NAFTA are uncompetitive now and have really reduced production level.

是的。我想再補充一點：如果你看氯鹼，特別是 PVC 端，如你所記得的，去年價格幾乎是由中國決定的。現在仍然如此，但方式不同：就 PVC 而言，中國約 25% 到 30% 的產能是使用 NAFTA（石腦油）路線，其餘則是電石法（carbide base）。所以目前所有石腦油路線都沒有競爭力，且已大幅降低產量。

The carbide side, on the other hand, has increased operating rates and that has put another now ceiling in terms of price increase. So that's why you saw a price ramp up very fast in China and then a little bit of a decline, since probably early April, but it's stabilizing at a higher level than where it was last year, and we've seen stabilization around $900 -- $850, $900 per metric tonne.

另一方面，電石法的開工率提高，這也在價格上行方面形成了另一個天花板。因此你會看到中國價格非常快速地拉升，然後自大概 4 月初以來略有回落，但目前正穩定在高於去年水準的位置；我們看到大約穩定在每公噸 900 美元——850 到 900 美元左右。

So overall, we think that the price for PVC export will stay elevated. It could come down gradually over the year, but it's going to stay elevated for an extended period of time.

所以整體而言，我們認為 PVC 出口價格將維持在高檔。它可能會在一年內逐步回落，但仍會在相當長的一段時間內維持偏高水準。

Peter Osterland, Truist Securities.

Peter Osterland，Truist Securities。

First, just wanted to ask on HIP. You highlighted data centers as a growth driver for pipe and fittings. Can you quantify the revenue contribution or the backlog growth that's tied to the data center market? And how does the margin profile for sales into this market compare to HIP overall?

首先想請教 HIP。你提到資料中心是管材與管件的成長驅動因素。你能否量化與資料中心市場相關的營收貢獻或積壓訂單（backlog）成長？另外，銷售到這個市場的毛利率結構，與 HIP 整體相比如何？

Yeah, it's a good question. I would say in the first half, sales and orders in the first half represent mid-teens percent of our volume, and it's a growing market, as you know well. So we expect it to continue to be a nice contribution to the infrastructure side of our pipe and fittings businesses.

是的，這是個好問題。我會說在上半年，與資料中心相關的銷售與訂單，上半年合計約占我們出貨量的中十位數百分比（mid-teens percent），而且如你所知，這是一個正在成長的市場。因此我們預期它會持續為我們管材與管件業務的基礎建設端帶來不錯的貢獻。

But I'd say -- as I say, the first half, both orders and the order book and sales for the first half of the year, it's mid-teens and growing. So we expect it to be a continued contribution to the pipe and fittings piece of HIP.

但我想說——如我所說，上半年不論是訂單、訂單簿（order book）以及上半年的銷售，都是中十位數百分比且仍在成長。因此我們預期它會持續對 HIP 的管材與管件板塊做出貢獻。

Great. And then just as a follow-up, on the $67 million PVC pipe settlement, does this settlement resolve the entirety of your exposure to litigation related to this? Or is there a potential for any further one-time charges?

很好。接著追問一下，關於 6,700 萬美元的 PVC 管材和解案，這項和解是否已解決你們在相關訴訟上的全部曝險？或者未來是否仍可能出現任何進一步的一次性費用？

Yeah. This is tied really to the direct purchasers component of the litigation. And so there are two other categories of claimants that we're in conversation with. So we've got a reserve of $10 million for that second category, but there are further obviously, discussions to be had.

是的。這主要與訴訟中「直接購買者」（direct purchasers）部分相關。另外還有兩類索賠方，我們正在與其溝通。因此我們針對第二類已提列 1,000 萬美元準備金，但顯然後續仍有進一步討論要進行。

Duffy Fischer, Goldman Sachs.

Duffy Fischer，高盛。

I was wondering, can you help me -- I'm having a hard time triangulating your HIP numbers on revenue. So if you assume that PVC prices are up, you talked at least $0.10, so that's like a third and you said that you're going to get priced by the back half to offset that. So that would be pretty significant price increases rolling through HIP.

我想請你幫我一下——我很難把你們 HIP 的營收數字對起來。如果假設 PVC 價格上漲，你提到至少 0.10 美元，那大概是三分之一，而且你也說你們會在後半段完成定價以抵消這個影響。所以這代表會有相當顯著的漲價在 HIP 逐步反映。

But yet you're guiding us to the low end of your revenue guide, which would mean that volume must be down significantly in the double digits versus what you expected. So can you just tie those together, the inflation rolling through into HIP, the price that you're going to get and then how that changed your revenue outlook vis-a-vis volume?

但你們卻指引到營收指引區間的低端，這意味著相較你們原先預期，出貨量必須大幅下滑、可能是雙位數的下滑。所以你能否把這些串起來：通膨/成本上漲如何傳導到 HIP、你們將取得的價格，以及這如何在出貨量層面改變你們對營收的展望？

Yeah. And Duffy, good question. We're seeing mixed signals right now in the markets. You've seen housing starts, the latest report show that housing starts at 1.5 million housing starts, which is meaningfully higher, but I would say permits were only 1.3%, which is trending lower. So you see mixed signals right now in the marketplace.

是的。Duffy，這是個好問題。我們目前在市場上看到的訊號是混雜的。你看到最新報告顯示，新屋開工數為 150 萬戶，明顯較高，但我會說核發許可（permits）只有 1.3%，呈現下行趨勢。所以你會看到市場訊號混雜。

And as we start in robustness now, the construction season now that we're in May going forward, we're just being cautious in terms of what housing starts are likely to be. Remember, half our businesses, housing starts, the other half is repair and remodeling, but those are smaller volumes. And so housing starts tend to be higher volumes. So we're just really being cautious about volume we could see with the potential slowdown in housing starts in this year.

而且隨著我們進入 5 月、也就是建築旺季接下來的期間，我們對新屋開工可能的走勢採取較為審慎的態度。請記得，我們的業務有一半與新屋開工相關，另一半是修繕與翻新（repair and remodeling），但那部分的量較小。因此新屋開工通常代表較大的出貨量。所以我們只是對今年新屋開工可能放緩所帶來的出貨量風險保持謹慎。

Great. And then just one housekeeping. How much cash do you have left to spend on your expense cost-cutting program from last year?

很好。再一個例行問題。你們去年那個費用成本削減計畫，還剩多少現金要支出？

You're talking about the three-pillar strategy that -- when you say your cost-cutting initiatives?

你指的是三大支柱策略——也就是你說的成本削減措施嗎？

Yeah, exactly. How you spent cash this quarter that was already expensed, I believe, as I read through it. Is that fair? And is there more cash yet to be spent on that?

對，沒錯。你們本季花掉的現金，我理解是先前已經認列為費用的部分，我這樣讀是對的嗎？這樣理解合理嗎？而且那個計畫是否還有更多現金尚未支出？

There is. And so -- I would say in the neighborhood of $50 million remaining in '26.

有的。所以——我會說在 2026 年大約還剩 5,000 萬美元左右。

Hassan Ahmed, Alembic Global Advisors.

Hassan Ahmed，Alembic Global Advisors。

Earlier in the call, you talked a little bit about PVC export opportunities opening up. So just curious to find out where you're seeing those opportunities, particularly in light of a bunch of countries, be it India, the EU and the like already having antidumping duties in place?

在電話會議稍早，你提到 PVC 出口機會正在打開。所以我想了解你們在哪些地區看到這些機會，特別是考量到許多國家——例如印度、歐盟等——已經有反傾銷稅在實施？

Yeah. I mean we are continuing to see the -- you are correct. I mean the demand from India and the rest has decreased a little bit. But overall, the supply is also -- even though over -- I would say, probably February, March, you saw an uptick in supply from China. Since then, we've seen still a steady demand for export, and we are pretty much selling everything we can to the export market at pretty good prices right now.

是的。我的意思是，我們持續看到——你說得沒錯。我的意思是，來自印度以及其他地區的需求確實略有下降。但整體而言，供給也是——即便在——我會說，大概在二月、三月，你看到來自中國的供給有所上升。自那之後，我們仍看到出口需求保持穩定，而我們基本上把能賣的都以相當不錯的價格賣到出口市場。

I would say we continue to support the Latin America, South American markets as well.

我會說我們也持續支援拉丁美洲、南美洲市場。

Understood. And just carrying on with that. I've read some recent reports about the Chinese removing their VAT export drawback on PVC. Are you hearing similar things? And if that is true, what does that do to the cost curve? What does that do to Chinese exports going forward?

了解。那就延續這個話題。我讀到一些近期報告，提到中國取消了PVC的出口退稅（增值稅退稅）。你們也有聽到類似的消息嗎？如果屬實，這會如何影響成本曲線？這會如何影響中國未來的出口？

You're talking about the fact that they removed and that it was sometime after a question whether they were removing it?

你是指他們已經取消了，還是指在某個時間點之後，大家在問他們是否要取消？

Yeah, they were -- we're moving it really in April. And I would say that we did see some increase in exports just in advance of the April date. But certainly, that creates even a higher hurdle for those who are exporting because those that do have a higher cost, especially those that are ethylene-based certainly have now had an additional higher hurdle.

對，他們——是在四月取消的。我會說，我們確實看到在四月這個日期之前，出口有一些增加。但毫無疑問，這讓出口商面臨更高的門檻，因為那些成本較高的，尤其是乙烯法的廠商，現在又多了一道更高的障礙。

As Jean-Marc noted earlier in his comments, those that are acetylene-based certainly are on a lower end of the curve and not seeing the challenges of higher cost from the NAFTA they're coming through. But I would say that revision or that rescission, I should say, of that VAT is certainly an additional headwind that all exporters out of China are now facing.

如同Jean-Marc先前在評論中提到的，乙炔法的廠商確實位於成本曲線較低端，並未面臨因NAFTA那邊傳導而來的較高成本挑戰。但我會說，這次調整——或者我應該說撤銷——這項增值稅退稅，確實是所有從中國出口的出口商現在都在面對的額外逆風。

And Steve, just for me to get the numbers right, I mean, is it fair to assume that that headwind would be maybe like $75 a tonne to maybe like $100 a tonne somewhere in that ballpark?

Steve，為了讓我把數字弄清楚，我的意思是，是否可以合理假設這個逆風大概是每噸75美元到每噸100美元，差不多在這個範圍？

(multiple speakers) That's about $70. I'll just undo the middle math. That's about right.

（多位講者）大概是70美元。我把中間的數學倒推一下。差不多沒錯。

Matthew Blair, TPH.

Matthew Blair，TPH。

Could we circle back to these higher natural gas costs in PEM in the first quarter? It looks like -- if I just look at a Gulf Coast indicator like Henry Hub, it did spec over $7 at certain points in January. But overall, it looks lower quarter-over-quarter in Q1 versus Q4 as do most other Gulf Coast indicators.

我們能否回到PEM在第一季較高的天然氣成本？看起來——如果我只看墨西哥灣沿岸的指標，例如Henry Hub，一月某些時點確實飆到7美元以上。但整體來看，第一季相較第四季似乎是季比下降的，其他多數墨西哥灣沿岸指標也是如此。

I do see higher natural gas indicators in Europe quarter over quarter. So maybe could you just help us understand your headwinds in natural gas? Were there any derivative impacts like maybe rolling out hedges from last year or any other one-time issues there?

我確實看到歐洲的天然氣指標是季比上升。所以也許你們能幫我們理解一下你們在天然氣方面的逆風？是否有任何衍生影響，例如去年避險部位的展期，或其他一次性因素？

Yeah, Matthew. No, we had -- I'm just looking at some of the indices here and you're right, gas in late January and through much of February was north of $7. We're a buyer on large well on a spot basis from a pricing perspective. And so it was really that $45 million headwind that I mentioned that drove -- was a headwind that drove an impact on results in the first quarter.

是的，Matthew。沒有，我正在看一些指數，你說得對，一月下旬到二月大部分時間，天然氣都在7美元以上。從定價角度來看，我們在很大程度上是以現貨為基礎的大買家。所以主要就是我提到的那4,500萬美元逆風，對第一季的結果造成了不利影響。

But with the poll on natural gas globally given what's happening in the Persian Gulf, you really have seen gas prices come down significantly. And we're probably just in the $280 to $290 range today. There is somewhat of a contangoed curve on gas, but what we continue to see is that gas curve continues to get pushed out. And month-on-month, we've seen low prices persist in this just under $3 range.

但考量到全球天然氣的拉動效應，以及波斯灣正在發生的事情，你確實看到天然氣價格大幅下滑。而我們今天大概在2.80到2.90美元的區間。天然氣曲線有些呈現正價差（contango），但我們持續看到這條曲線不斷往後推移。而且月比來看，我們看到低價持續，維持在略低於3美元的區間。

Sounds good. And then for the FIFO impact, I think you said it was $37 million. Do you have a split between PEM and HIP for that impact in Q1?

了解。另外關於FIFO影響，我想你說是3,700萬美元。你能否提供第一季這個影響在PEM與HIP之間的拆分？

Yeah. That was all PEM related, but it was $37 million.

可以。那全部都與PEM相關，是3,700萬美元。

Abigail Ebers, Wells Fargo.

Abigail Ebers，Wells Fargo。

I'm curious about your expectations for caustic soda later in the year. Obviously, you're expecting prices to increase near term in line with consultants. But I'm seeing in their forecast pricing coming down around October, which they're saying is due to demand destruction from ongoing inflation and elevated interest rates. I'm just curious about your volume and pricing outlook for caustic soda in the back half of the year?

我想了解你們對今年稍晚燒鹼的預期。顯然，你們預期短期價格會依照顧問的看法上升。但我看到他們的預測在十月左右價格會下滑，他們說原因是持續通膨與高利率導致需求被破壞。我想請教你們對下半年燒鹼的銷量與價格展望？

Yeah. Good question. As I mentioned earlier, we've had two price announcements, and we've realized the great majority of that first price announcement already. I'd say demand right now is stable.

是的。好問題。如我先前提到的，我們已經發布了兩次漲價公告，而第一個漲價公告我們已經實現了絕大部分。我會說目前需求是穩定的。

And as we look forward into the second and third quarters, I actually see because of that stability, a pretty stable price and the consultants do have some small price increases between May and July that represent about $30 a tonne. But I'd say demand really looks pretty stable at this stage.

而展望第二季與第三季，我其實認為因為這種穩定性，價格也會相當穩定；顧問確實預期在五月到七月之間會有一些小幅漲價，約每噸30美元。但我會說，在這個階段需求看起來確實相當穩定。

Okay. Got it. And then just a question on HIP and PVC, how do you size the weather impact on the construction -- beginning of the construction season this year? Where would things be if the weather had been more cooperative, do you think?

好的。了解。另外一個關於HIP與PVC的問題：你們如何衡量今年施工——施工季開始時的天氣影響？如果天氣更配合，你覺得情況會是怎樣？

It's a little bit hard to say, but I would say, given the very cold weather we had in January and persisted at least through much of February, it certainly slowed down a lot of the early order intake. And as a consequence, we did not get the full benefit of that in the first quarter.

這有點難說，但我會說，鑑於我們一月的嚴寒天氣，且至少延續到二月大部分時間，確實讓許多早期訂單的接單速度放緩。因此，我們在第一季沒有完全享受到那方面的效益。

And so certainly, we'll wait and see how the second quarter really translates as we get further into construction season now that the weather is much more milder throughout most of the country. Second quarter is usually when we see a real pickup.

所以當然，我們會再觀察第二季在進入施工季更深之後會如何反映，因為現在全國大部分地區的天氣都溫和許多。第二季通常是我們看到明顯回升的時候。

But I would say, as I mentioned earlier, housing start numbers that we've seen published are certainly elevated, but permits are looking more softer. And so that's really the cautiousness that we're looking as we look at our order books.

但我會說，如我先前提到的，我們看到已公布的住宅開工數確實偏高，但建築許可看起來較為疲弱。因此，當我們檢視訂單簿時，這就是我們保持謹慎的原因。

Jeff Zekauskas, JPMorgan.

Jeff Zekauskas，JPMorgan。

I think early in the call, you were talking about domestic PVC price increases as being $0.06 a pound for the first quarter, $0.01 then $0.02 then $0.03. But you also talked about discounts that were given. In general, did PVC prices net of discounts rise in the first quarter?

我想在電話會議一開始，你談到國內PVC的漲價在第一季合計是每磅0.06美元，分別是0.01、0.02、0.03。但你也提到有給折扣。整體而言，扣除折扣後的PVC淨價在第一季有上升嗎？

So I think your discount, you're referring to the price resets that took place at the end of the year, Jeff, I believe?

所以我想你說的折扣，是指去年年底發生的價格重設（price resets），對嗎，Jeff？

Yeah, that's exactly it.

對，正是如此。

Yeah, because certainly those -- as we think about the price domination that we had in January and February, I would say that we're beginning to pick up traction from where we were at the end of December. And so when you think about the March increase, most of that is going to be reflected in the second quarter and not really in first-quarter results.

是的，因為當然，那些——當我們思考一月與二月的價格主導情況時，我會說我們正開始從十二月底的水準逐步取得一些動能。因此，當你想到三月的漲價，其中大部分會反映在第二季，而不會真正反映在第一季的結果中。

Okay. And then if I can ask a naive question. Chinese PVC exports, year-to-date, maybe they're up 45% of being up 45% for all of 2025. And there's really no PVC materially that's made in the Mid-East. And so for me, why is it that PVC prices should be up at all? Does it have to do with European ethylene inflation?

好的。接著如果我可以問一個比較天真的問題。中國PVC出口年初至今，可能已經上升45%，等於2025年全年上升45%。而且中東其實沒有任何具規模的PVC產能。所以對我來說，為什麼PVC價格還會上漲？這是否與歐洲乙烯成本上漲有關？

Because there doesn't seem really to be any disruption to Asian production and there's no disruption to US production. And what we're seeing, of course, is we're seeing PVC prices begin to move down pretty sharply in Asia. But what's the source of the sharp move up in PVC. It's very clear what it is in polyethylene. But can you give us an idea of what pushed PVC up?

因為看起來亞洲生產並沒有真正的中斷，美國生產也沒有中斷。而我們看到的當然是，亞洲PVC價格開始相當明顯地下滑。但PVC大幅上漲的來源是什麼？聚乙烯的原因非常清楚。但你們能否讓我們了解一下，是什麼把PVC推高了？

Yeah. There is -- if you look into the situation in China, as I said, about 25% of the capacity is not carbide based. And so it's really sensitive to NAFTA prices. So they've been hit pretty hard with the increase in NAFTA prices, and they are economically, it's really impossible for them to export. And they barely at breakeven point when you look at current prices. So -- and quite a few of them have actually dramatically reduce their operating rate.

是的。如果你看中國的情況，如我所說，大約25%的產能不是電石法。因此它對石腦油（NAFTA）價格非常敏感。所以石腦油價格上漲對他們打擊很大，從經濟性來看，他們幾乎不可能出口。而且以目前價格來看，他們幾乎只是打平。所以——其中相當多的廠商其實已大幅降低開工率。

If you look at the carbide, they are mostly in China, they're not really on the coast. So all the effect of transport cost increase and everything has put an increase on to the PVC prices. You add on top of that, the duty go back removal of about 15%, and you get support for PVC price increase.

如果你看電石法產能，它們多數在中國內陸，並不在沿海。因此運輸成本上升等各種因素的影響，都推高了PVC價格。再加上約15%的退稅取消，你就會看到PVC價格上漲獲得支撐。

And that's why right now after a spike, it went over $1,000 per tonne in China early on. It's stabilizing in the $850, $950 per metric tonne -- per metric tonne when if you look back last year, they were down to the $500, $550 range. So that's still a significant increase.

這也是為什麼目前在一波飆升之後，中國早期一度突破每噸1,000美元。現在正穩定在每公噸850到950美元——每公噸；而如果回看去年，價格曾跌到500到550美元區間。所以這仍然是相當顯著的上升。

Matthew Deo, Bank of America.

Matthew Deo，美國銀行。

So if I square off the $45 million headwind from gas quarter-over-quarter for PEM and then I back out $100 million of EBITDA from the cost cuts sequentially. I don't know, maybe the PEM was down $60 million quarter-over-quarter, all else equal from like an operational perspective.

所以如果我把PEM因天然氣造成的季度環比4,500萬美元逆風因素扣掉，然後再把成本削減帶來的1億美元EBITDA按序列扣除。我不知道，也許在其他條件不變下，從營運角度看，PEM季度環比大概下降了6,000萬美元。

Prices moved up over the quarter, but we just talked through some of the PVC role discounting that was maybe unique to Westlake versus peers. But that doesn't feel like that fully explains the whole differential to me versus what your peers explained or put up in the quarter.

本季價格是上升的，但我們剛剛談到一些PVC的角色折讓（role discounting），可能是Westlake相較同業較為獨特的情況。但我覺得這似乎不足以完全解釋你們與同業本季所說或呈現的差異。

And so is there any reason why the calendar role would have been more punitive to you in polyethylene or with some epoxy additional headwinds that maybe we're not catching? Because it still feels like there is some idiosyncratic drag that maybe wasn't so amply felt on your peers.

所以，是否有任何原因使得日曆角色（calendar role）在聚乙烯上對你們更不利，或是環氧樹脂還有一些額外逆風是我們沒有捕捉到的？因為我仍覺得有一些特定於你們的拖累，而同業似乎沒有那麼明顯地感受到。

I can't -- Matt, I can't -- I guess I'm struggling with your math here because we certainly have recognized the same price nominations that I think we've seen announced by Westlake throughout the quarter, both in epoxy and in PVC and polyethylene. Maybe part of the equation is we also did planned maintenance in one of our sites earlier this year in the first quarter at Plaquemines.

我沒辦法——Matt，我沒辦法——我想我有點跟不上你這裡的算法，因為我們確實認列了相同的價格提名（price nominations），我想這些在整個季度Westlake都有宣布，環氧、PVC與聚乙烯都是如此。也許其中一部分原因是，我們今年第一季在Plaquemines的一個廠區也做了計畫性維修。

And so that may be part of the equation that you did not have in your individual model. And so that was impactful in terms of opportunities, but it was a planned outage that we had taken. But I think when you walk through the model, our price nominations and price realizations, I think, are the same that we that we've nominated that I think many of the others have spoken to that I've read.

所以這可能是你在個別模型中沒有納入的一部分因素。因此在機會面上確實有影響，但那是我們安排的計畫性停工。不過我認為，當你把模型走一遍，我們的價格提名與價格實現，我認為與我們所提名的相同，也與我讀到的許多其他公司所談到的是一致的。

Okay. And then if I look at, I don't know, maybe this during 2022, right? European electricity costs are not up nearly as much, but European caustic profitability is pretty bad right now, maybe down $20 million, sorry, $200 sorry. But it's down $200 a tonne. It seems like caustic rolling in Europe.

好的。然後如果我看，我不知道，也許是在2022年期間，對吧？歐洲電力成本並沒有上升那麼多，但歐洲燒鹼獲利能力現在相當差，可能下降了2,000萬美元，抱歉，是200，抱歉。但它是每噸下降200。看起來歐洲燒鹼在走弱。

Do you see an opportunity for export window on caustic to Europe to open up, maybe not a way it in 2022, but -- is that an area for upside as we look through the course of the next quarter or so when this continues? And then can you modify how much of the planned outage was now that we just mentioned that?

你們是否看到燒鹼對歐洲的出口窗口有機會打開？也許不像2022年那樣，但——當這種情況持續時，這是否可能成為我們展望未來一季左右的上行空間？另外，你能否補充一下我們剛提到的計畫性停工影響大概是多少？

Yeah, I would say it's in the $20 million range.

是的，我會說大約在2,000萬美元的範圍。

And in terms of caustic, you are correct. I mean caustic price might indicate that there is an opportunity to ship there. But when you look at the price for transport and everything, it completely offsets the spread that there is between the US and Europe. So right now, there is really no good opportunities to export caustic to Europe.

至於燒鹼，你說得沒錯。我的意思是，燒鹼價格可能顯示有機會運到那邊。但當你把運輸價格以及各種成本都考慮進去，它完全抵消了美國與歐洲之間的價差。所以目前其實沒有很好的機會把燒鹼出口到歐洲。

Thank you. This ends our question-and-answer session. Let me turn it over to Jeff Holy for closing remarks.

謝謝。我們的問答環節到此結束。接下來交給Jeff Holy作結語。

Thank you. Thanks for participating in today's call. We hope you'll join us again for our next conference call to discuss our second-quarter results.

謝謝。感謝各位參與今天的電話會議。我們希望各位下次也能加入我們的下一次電話會議，一起討論我們第二季的業績。

Thank you for participating in today's Westlake Corporation first-quarter earnings conference call. As a reminder, this call will be available for replay beginning two hours after the call has ended. The replay can be accessed by Westlake website. Goodbye.

感謝各位參與今天Westlake Corporation第一季財報電話會議。提醒各位，本次會議在結束兩小時後將提供重播。可透過Westlake網站收聽重播。再見。