PPG Industries (PPG) 17 Oct 242024 Q3 Earnings call transcript

Good morning. My name is Elliot, and I'll be your conference operator today. At this time, I would like to welcome everyone to the third quarter PPG Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Alex Lopez, Director of Investor Relations. Please go ahead, sir.

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

Knavish, Vince Morales, Vice the PPG call Joining Officer. Chief Senior Chief me and are President on Tim Officer; Executive Chairman Financial from and and

October financial Our the after equity XXXX. information comments relate markets XX, U.S. released to closed on Wednesday,

available commentary Investor The the detailed make posted additional and the also Center slides our have slides provide the accompanying shortly. for We on opening site ppg.com. of website, are and will this on webcast presentation comments call Tim to support

cause also presentation actual to on The appendix provided the management's -- The financial statements. risks, discussion call and the no are under which may financial Following of financial forward-looking these PPG's quarter, subsequent to is presentation Q&A to to measures. in company provide the a the for contain most forward-looking Q&A operating on our measures during and this statements the statements which directly company's uncertainties certain The current obligation may website, the company updates events on non-GAAP These of measures. non-GAAP has results available and reconciliations future perspective these reflecting view materials, session. of results contains commentary their to to we and will company's effect involve move differ. Both performance. potential the prepared financial comparable GAAP

additional SEC. with the information, PPG's please filings For to refer

and me Knavish. introduce Tim let PPG Chairman CEO, Now you

I'll make diluted share few tax higher our eighth few to delivered growth comparison on earnings our unfavorable record call. billion X% The represents quarter financial team of XXXX to Welcome by $X.X our reduced then per year-over-year Thank XXXX and third outlook. our press from move X%. which morning culminated I'd the in $X.XX, year-over-year quarter despite providing morning, or consecutive quarter year-over-year you, third a improvement. adjusted start Alex, rate, everyone. good margin of this and EPS This on which earnings of a $X.XX third and like quarter an PPG sales segment comments by release impact highlights to a our performance,

Our by segment margin improvement our business was to of productivity a due and our products sales lower continued favorable mix and costs. driven deliver to Advantage focus

volume as Europe business business, Our out refinish, segment performance another X% coatings by of organic the businesses overall in architectural Coatings We specifically growth X XX growth claims. despite percentage was lower collision products volume delivered of in plus growth the in quarter, our year-over-year sales above-market flat. broadened delivered single-digit driven increases Performance U.S. industry in automotive including in high and collision-related

sales double-digit organic growth we Aerospace ended stemming record despite Coatings year capacity quarterly our and million. the sales, delivered our from an percentage with production Additionally, and $XXX backlog of productivity this still gains, order approximately quarter debottlenecking improving through business other

driven This We to architectural our by Americas and U.S. and continues and perform the our sustained the Canada. had demand backlog network technology Pacific products strong contractor growth in Mexico in the advantage dynamics. Asia excellent demonstrates well. in coatings concessionaire channel professional for Also, industry

for Western volumes And declines. Year-over-year, business share trend supported of Marine for by and results while, recent several benefited flat. after Europe strong result organic global in this our from were course, growth & Europe, Coatings of and Central sales Protective our This demand sales gains. growth Architectural by across quarters aspire Additionally, sales the business, lower Eastern are positive in Europe. flat offset was in we

our environment reflects in key Coatings strength and the segment Performance brands Solid services. growth in technologies, difficult of our a

the Industrial challenged production, which However, constrained increasingly and OEM segment. auto this by in global growth was demand industrial offset Coatings

industry, organic while was quarters, OEM and America guidance. end in and mixed by industry to automotive taken As growth particularly growth industrial prior rapid negatively in in performance U.S. percentage in This to the has and Coatings July prolonged offset were considered consecutive late production U.S. decline solid that quarter. the our percentage. achieving impact share volume top cost and able publicized, Latin and our Despite the mid-single-digit our our earnings able in were to partially not unscheduled impacted fully quickly business, financial gains. in efforts, that mirrored share was has Coatings in Europe, We China gains general business China. Similar resulted volume growth Industrial the line. quarter use, driven we well delivered volume India, volume And our in volume Europe by in strong of Packaging in not sales the with the a we with reacted downtime by offset the growth lackluster been top that double-digit activity declined incremental decline backdrop. performance delivering single-digit percentage PPG aggregate line third and We mitigation

the continue During were this quarter, costs material third will expect the quarter. year-over-year in fourth we and raw flat

just preliminary ample our capacity and our chain. in now with starting is supply are discussions there We XXXX, suppliers for

We ended $X.X of quarter the third about with billion. cash

approximately in our returned we we and supported repurchases. shareholders to On basis, in During billion the $XXX is and have share cash quarter, consistent by million paid a share completed flow repurchases $X dividends. This dividends of million through cash $XXX year-to-date generation.

the balance going this from business us our wanted shareholder the Coatings opportunity sheet Canada value you with flexibility announced U.S. an update forward. previously with business. create to silicas strategic of Our financial to products take I and provides Architectural and provide reviews to global strong

business reached approximately we pretax silicas for to million sell in proceeds. products agreement our definitive a $XXX announced, previously As

to transaction the quarter. in close this expect fourth We

Canada XXX% a U.S. definitive a that Coatings value am Regarding transaction I million. of the morning's reached share announcement, for to and to review, this per Architectural strategic we business sell of agreement $XXX have this pleased

and optimize improving record. our a Partners, a company growth our like and to track return very Industrial growth strongest are with and a with financial further increased be by We areas growth growth-focused American win. capability and the strong we to result pleased working margin portfolio our in divestitures channel demonstrated organic X to profiles buyer right a quality strongest These have resources profiles to where will

we demonstrate forma stated XXX company excluding points, announced Also, company's and basis, PPG's Architectural creating we by our As resulted on would Coatings, the X-year portfolio Board. basis excluding and focused segment our over review, Performance management a active management Architectural volume XXX point and overall U.S. approximately improved in Coatings when operating clearly value Canada improvement by margins have in the an by Coatings' actions pro basis would XXXX. results EBIT, the of sales Canada These value shareholder on business. this have in cumulatively segment the U.S.

the in QX U.S. Canada silicas Architectural transaction on expect We and to and in QX late Coatings transaction the XXXX. or close early

important businesses a On actions eliminate other rationalization $XX manage deliver Pacific these these program Latin Coatings aggressively restructuring separately announced to footprint and program a will stranded from remain we costs for Let to This million me PPG. implemented, our million and reflect savings enable fully Europe controllables. $XXX our reiterate in America, These in businesses. core of top other associated of to global coatings comprehensive self-help approximately XXXX. in few ongoing that including Asia and once our specifically commitment businesses Architectural transactions portfolio actions, have and Europe

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

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

of Thank reinforces for to margins productivity our earnings in open not our in maintain our committed happen team Finally, and our your ability confidence driving This PPG and remain cost Thank to management growth around The the you of you growth. the we be make performance and to And for line possible our our employees strong the every continued higher deliver the heritage without to it remarks. Elliot, strong PPG. momentum would questions. world on please improved dedication would prepared you who day. for purpose deliver concludes PPG. that

John first with question Our from Roberts Instructions] [Operator Mizuho. comes

multiple the deal? clean Tim, the to exit stranded at cost anything the on left or could with give architectural completely is behind And you corporate? is the there valuation PPG besides us to deal

Thanks, John. Yes.

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

Okay, thanks, John.

is this And Vince, John.

business there as facilities no reminder, the separation this the and manufacturing issues there's a were so primarily distribution Just with of in stand-alone, terms associated well.

question comes the next Sison Wells with of Fargo. Your from Michael line

going Congrats EPS year little you potential do bit see grow forward? PPG for walk, on talk And on sort the to volume start of deals sale silicas? early How but growth I know post to recovering Can for getting it's economy? algorithm give maybe XXXX a and any a about the architectural you we're of done. next and how in hopefully, framework just the growth an the EPS

Yes. Thanks, Mike.

a thinking to the is give about it's with we're have But we in We're trend You're a number of early Performance Coatings. areas. little in right, any pleased very numbers. the momentum it way

growth IHS look is it's at the taken us a year which Europe, finally kick 'XX. and will a to positive to positive here year. all I'd what's for today so builds of that us would year. here, that gaining flattened auto, as marginally a number 'XX help QX, will as been self-help happened the traction is in And on while positive start about despite in than be story next then If head get say talking while We're we've well. is lot in this we better marginally we a into you announced initiatives projecting that

with assuming some that be we're So will announced PPG, margin more result this you we to continue in focused we'll with morning, -- profile macros. just overall, portfolio to the have a and a move higher continue sharper challenging when excited optimistic But growth we'll we're that and combine higher XXXX. the PPG

But have again, our release. -- expect put Vince, one and strong we to certainly thing today. we Mike, add a balance in I'll sheet we there, press this

to a the strong We expect year balance with end sheet.

that quarters use and shareholders' years our sheet subsequent balance us in that gives to benefit. that the to So flexibility

Your from next with Michael Leithead question comes Barclays.

the at Can speak price for quarter? and volume got or a margins? of about little the came bit little this declines we end a function you more trajectory was driven think the quarter, caught in you And industrial and below a the as bit outlook weakness offside more just the about when of forecast,

Yes, Mike.

So in some coatings. particularly The I'd as index through driven price as say we expected general an quarter, was well, volume, There the was auto progressed issue the -- pricing. That the as you also was saw OEM, largely but that. we by industrial was it there impact all but real documents, was some predominantly volume. in

any that back, we're also outlook, of right why the leverage actions. taking bring these reason but volume So the self-help will part

with Your next Baird. question comes from Ghansham Panjabi

in relates initially that, allocations gross we $XXX the related also and to sale global it is as about to think you assets keep that proceeds, you outcomes as that any of and number dis-synergies Tim, the procurement should that also contemplated should from in proceeds within million the we anticipated then mind? range how the of

with, Yes. to initial this The interested get. had bids. work were XX over what Goldman amount XXX certainly, parties is we $XXX multiple of We a with got expecting with during tremendous did process. literally begin and consistent million XX to us the

of balance so cash pleased gave said into XX a broad point us grow would going true of And and last I And the we X the track the Proceeds, had interest to the over optionality quarters. were. lot group a multiple. what our on sheet. multiple just the times let with to of just not we're We've value record lot we're assets that a of very gave us insight

out America, shares you business, any as see if are basis. dis-synergies the think the X third think, large know, in raw procured that growth there regional deployment over really our been shareholder years, North this a don't Comex producer PPG materials generally plans So a within question, the and potential as -- back your And We quarters the material. there raw we We've because by coatings of there. on on buying part materials. about are if with you of any I delivers as there's even was of And raw particularly nothing value. better we without last of far stick

Duffy comes Sachs. question Goldman next Fischer with Your from

around just the or [indiscernible]. A cost program question

where that? is from in the that charge, kind next on out? will the year, do any $XXX flow $XX How how of the stranded the netted smaller that in going years? to against being the does the how that be X cost the the million ends to rest get of from net get So up of businesses, $XXX you that million, the of Then the sale model subsequent to of and we cash that in, flow then million

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

$XX months. pro cash are savings, years. charge next I'd Yes, then $XXX X-year say over is so again, million following will XX in XX, The spread first XX Duffy, period. the immediately. front-loaded rata million we the and That as be a program said, over as year today months-or-so, X

to making years, production some subsequent you upfront. in million that some that have hitting $XXX are million incurred We and another other some on, as $XX Oh, million $XX January. the book we changes We I next had certainly question items of total to as costs to charge comment. our million, are guidance $XXX X another well. opposed of savings and year. total will have sorry, I'm our the look required takes we do again, give footprint, think year at And have around. for do But next so as is give we to structural $XX We million short-term as facilities time move quick

again, to those be are pro X cetera, I next So assume as over years, over rata as costs we booked next now, would X equipment, the right those the incurred. years et have move

with question next from Your of Patrick comes the Citigroup. line Cunningham

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

Yes, I'm M&A that announcements little the as our we Patrick. but anywhere. The I'd would desk. couple look win, at a That's bit at we we the with the say, some has of a changed right a obviously, last #X not a making we'll X.X have or thinner been, that anywhere It's exclude Architectural wherever But did you peers over as take years-or-so Coatings fiduciary the strongest -- a have pipeline going -- to interest things a anything here, of buying #X. not comes of think our look lot than normal. X well should then that we to across to responsibility in

last machine. be extent inorganic very year, supplement will targeted adds but We're value, I organic an where I've over do growth how do took building And And opportunity. as it. and will going with that since we be we're the focused. so But in growth we it we'll to we at that any look shareholder talked that very we to

question of next from with Vincent Morgan Your Stanley. comes line Andrews the

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

Those the there's on the all in other leases, XX-K call with almost of along quantity transferred those. -- our XX-Q, are obligations Vincent, business. any with out Yes, a

our that. lease So be of debt our that And no there'll certainly, accordingly. footnote as change updated be to will profile a details result commitments that

Your comes of next Spector the Josh UBS. from question with line

you growth bit laid Tim, in could year framework I the little more talk that ago. than you was wondering about overall the confidence a out a if

probably this growth understand EPS help think XX% amount hasn't macro this low year, year you're lower of good you've X% And cooperative, to had from framework. of but end we where that I materials. below coming a been a the is the raw in

at So divestments modestly dilutive maybe together, are if everything is mean, EPS. look our the guess, I I I assumption to

about macro. a You talked challenging

You have cost savings.

think take So gap? that XX% to if X% of about framework, next EPS sit to what year as that that growth we high as too you bar we for do And not, is bridge a today?

-- other put net we be that not made One to going financial We're our give macro haven't be real that, but just dilutive did if going a which will of will Josh, PPG, to 'XX but 'XX transaction guidance. slightly to moves, about we thing, not not a this guidance. just would accretive, give quick. be if talk kind repurchase, decision not we're into share the Tim The yet, just proceeds it'll on dilutive. we yes. we

notably couple quarters every over that, number of a and helps been volume And on from course, better of most standpoint. a we a refinish, our have have Josh, the in about mix doing confident comps. mentioned appropriate of goals And we last job. I And the year-over-year areas. and we control. I'm takes momentum next great gotten those that have will I our X X going on know going a on still we and aerospace businesses, forward. think the that course I But into quarter, for are mean, year Yes, as of puts those this there volume in year focused past a outside the now, us I good over it's of in the out macros row a some set am we feel year-or-so, I but lot confident cycle depending earlier, metrics single here be or

momentum about good we have on initiatives that that the feeling the laid out we last year. I'm So

Begleiter Your question line the of Bank. next comes Deutsche from with David

excess in from single-digit in guys? marketplace Tim material costs in raw and given Vince, we your of the decline thinking about you be producers the price, on for should and low raws, another supply 'XX amount lower oil today's

of we're be lapping we've -- would again, because that David, said And should again, QX that's years. we QX. which declines consistent we're with for flat expect prior

I China are give look with early we're there, guess, us frankly, but think for to if we XXXX negotiations suppliers. there just like. Those guide a it slower for contracts too to negative you As 'XX, things But from things it's and maybe would story you negative starting than demand -- a if on our -- about from being helped a standpoint supply-demand people things the little from like our raws. a standpoint actually macro

So of year with upstream go -- into that year-end the here us. we or supply ample

we're the that's entering position negotiations So with. our XXXX

this Vince. David, is

talked we past, at times with in probably As have many the visibility X we months you here raws.

months what joint do on or are parties. based negotiation our could positive we want us today, them of in negotiated change dynamics. So say to what for everyone excess willing to with X Tim betterment have said manner supply both as with Almost external a in stress work of negative, we've began and I suppliers. -- the

the Your JPMorgan. with of Zekauskas Jeff next comes question from line

what What is down sale stop going excluded auto the Coatings OEM? in if quarter from business? the do the prices you in Architectural volume the architectural your Performance growth business? business, the of In cash proceeds have And when been would the

Yes.

ping team little tag -- this a it pong we'll and Let's Jeff. one bit,

The I'll take. first one

again, price fill to price price OSKAR the the sandwich negative the and those middle to time X from one architectural vast index from expect on -- majority to in the is The be $XXX months. let lags We there. And anywhere cash million. But I'll about about the go you to of third proceeds be Vince -- proceeds transaction see are the XX on in the side, of contracts. the the

have pricing, back example, will XX negative, X go -- and turn flatten after that's our that look we months. it's you prices months if -- the that all out will when some to in some and stop and out flatten after auto, for knowing at So index that like started

quarter. you If organic numbers and take year-over-year volume the what's Canada about you volume at you question growth or out your for the on the on performance up out take growth exact Jeff, U.S. sales this in almost same business, in the and Architectural end particular delta the price performance? Yes, for

Your the comes of next question Byrne with of Stephen from line Bank America.

your flat, ago, that months a over or just COGS? What's volumes COGS driving on raws follow more X%. energy Six, tailwind pricing, down X.X% your much was then your And it lower that were So indexed to? you on and the were that, flat little index the got to is what not And to XX dissimilar. to were coming?

to do So how How change? that? -- what's driving anticipate we can that we

on Yes. X.X Steve, talking about years. started have we've our the that gain we to the productivity last COGS, manufacturing for been

that that's So addition the in us helping mentioned. to you items

not we're Our index business, energy our are typically on contracts silicas selling. than other which based

a coatings basket contracts Our index raw materials that of goods. are cost for on based formulation the particular any closely represents

not energy. to either directly oil linked they're or So

on Yes. cycle, typically price up. way And of lag if the an we Stephen, beginning you on remember, the at inflation

the again, to of we're so on way price cycle, as lagging the we that down. get And on end

So there's from dislocated of a on when X- that, probably that moved. pause both raws are X-month the sides or

line Your VRP. comes the from with McCarthy Kevin next question of

perhaps stranded with earnings U.S. account to trajectory? don't tax and is costs, then regard this want secondly, And take give divestiture holistically, likely or to to think narrowly do be that guidance slightly it normal XXXX we and accretive angles XXXX discontinued you but immaterial into or in the Canada I to matter, course? in as fourth will just quarter to as the move your you or it keep slightly comment practical appreciate the could you operations a you dilutive various If deal.

next is to, million Tim have share the price Again, buyback net Good slightly net costs. be alluded year. Yes, $XX accretion of just just Kevin, from share a We of if yesterday's about would questions there. assume positive that stranded proceeds you for perspective series we Vince. an do this at

mechanics those morning, we'll that's company. tackle this our on operations. of costs to With XX% over the quickly. here to It's to as said, discontinued the that discontinued the that hopefully, the operations we we quarter, accounting, We'll intention in will through start activate next over -- at that announcement -- fairly -- upon closure here, we restructuring but certainly weeks. fourth the accordingly. several this respect to this move close go is And stranded we'll to saw You move the those

next the Your of Mitsch Fermium comes from Frank with question line Research.

To This good Davante sitting taking going about as is secondly, to 'XX on really [ Yes. drive point, the cost transaction. Refinish. think on where ] you're Frank. that that Adams Congrats $XXX And for curious to million Vince, costs, in costs just to out, you guided corporate progress down then you in to? corporate

units. MoonWalk more XXX added You

Just for in growth curious flat the Refinish? Refinish? should is why XXXX the we for think And what on guidance XQ about

manage with that yes, understand the noise look distributors Davante said you your Refinish, think there's Frank, should of Vince your likely and lot this multi-quarter take cash that on all loss X-step [ I times, really basis. know, distribution, differently. practicing the be weekend. a you take for Well, chain you let think ], at try destocking, the against first. business we question -- in a And I always so their we've to be may stocking, multiple second I'll a But Steelers and the

sales year-to-date, total flat, take So if claims you Refinish but are down. insurance significantly are

run consistent picking rate. net we're XXX a up and shop per about So pretty quarter that's wins

wins watch quarter really multiple sales. the net the we in So

pull not last relative did thing that price our to significant Now fairly we anticipating one forward do this have timing about a of as year. other will distributors increases. that much year, We're QX of

So QX QX. a between organic in growth things all lead the that shows that difference those give and together sales table to

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

Your the with next question John line comes McNulty of BMO. from

Congratulations, asset on sale. the again,

So the maybe auto's speak to we outlook. can

across a another growth what is things Europe? drags positive it's versus quarter-or-so clearly, be later in came going in in you're the consultants could more some of and cuts much guess business? to either or then of of what reason this how than is about how the outlook auto European thinking for are bit of that than end expecting your quarter at start this next cost-cutting worse early just the least kind I hearing into are as of So also or first, tied at on to that customers that end Is we there of the expected. the first terms think broad get to kind of and any program, pressures? industrial then segment, you year. kind I And on your guess as part well from to just of looking

exactly I in what continue how and builds would hearing we're et strike production is some first, you one auto downtime, question downturn And is customer talk. your because that in our the very you from into answer That it. cetera, customers John, described, there's it's there's this answered to increase going well, in we're where way watching U.S. the QX. honestly, particular closely something as

into guide. not and any is And strike built there that -- -- so our

do -- see But numbers, give the that part the said, we that The XXXX. But QX. we what elsewhere. particular, maybe auto very move will a councils but the get to work a dedicated made like got footprint but of portion what decisions closely cost you is certainly, as watching on Europe exact with business, there expecting, self-help based works that the in in IHS, as in are things from based is Europe, automotive and you auto we're we've expecting be into of we on self-help. we're we an are automotive So in and to hearing some before we including final Vince uptick can and

comments a to in Yes, do we've healthily what just reacting we industry john, the add industry. seen levels. of the on and here are I'll QX What inventory couple see

So inventory levels are not out of point. control at this

So we instilling is positive. there think the discipline

of out cetera. some carmakers models, think to little particular do we of some of downtime on earlier. is what benefit of taking We doing et a the new the coming think will Secondarily, plants a those we have, bit to the are early based have changeovers

that inventory in with us healthy incremental properly the the will benefit managing So give inventory good next or and some think, year. we changeovers,

next the line with comes Favre question of from Paribas. Your Laurent BNP

is the Aerospace business. first The question on

was getting I I main the some factored terms also if headlines in, your in into you you're guess, all at ongoing the think possible wondering volumes I XXXX? how of to outlook, slowdown. OEMs

Laurent, a a that that that's not big all is seeing does currently, aftermarket, bit. we on strike production red There's are but little are the one backlogs is customer slowdown. so in we military hot. around and our shift OE just And

not So slowdown. we seeing are a

Aerospace technology. expect across for board for growth that. could see for We're we going there and quarter for fourth outstanding And fact, our strong into another demand XXXX, continue a projecting I In single-digit the our a business. year high upside to be

strong into we're Yes. law exceptionally of is what we've industry couple running compounding just very of And growth. had here, of a The very, running numbers. years I Laurent, We're is robust. think large into

numbers, any seeing mathematics the large not we're but of just it's So slowdown.

Harrison Seaport with the from Research Partners. of comes question line next Mike Your

It can on the still capacity like been another capacity. growing aerospace backlog kind debottleneck in or there add is had constrained business. of demand than you've you maybe faster sounds or I question follow-up the

of on that are you getting priority kind your effort now for growth what is like bringing the where your So portfolio Canada aerospace with optimization top business? focus that terms And organic additional of initiatives this business? in Architectural to longer-term that you'd in some the through U.S. capacity are plans

in business Architectural and at Again, bandwidth and parallel and gives existing not management resources, bottlenecking exactly aerospace. team in to long-term our and spot with productivity resources, resources are on our it's And a capital in and additions capacity opportunity but the love our businesses human capacity that focus the us we on. perfect continued Canada our investment facilities. question because but U.S., yes, We looking this at our only like customers business, really products

multiyear not have bullish, very we'll accordingly. of we invest but kind aerospace, and only So QX XXXX, momentum -- for and on we're

line Yefremov from Your with of the next KeyCorp. Aleksey question comes

up were business expectation in these slowing sales quarter. dynamics just the mid-single or your digits this Is just fourth this Could flat in is XQ, comps you Refinish, In talk down? about here?

our at have business, now look have really year. again, more Yes. in it's this phenomenon year an not not multi-quarter inventory look we by little prebuying channel. in because in but the answered issue that the even on shop United Aleksey, will we management of related though take chart, here this reported at you is activity, slowdown to you But of this -- will. slowdown to last quarterly little likely channel, frustrating we particularly a earlier really that comp that not a to sometimes annual I this combined it's we're sometimes -- if with sellout, bit even sell-in It's body this question, it's the gets a on and a States a

increase off. And just January mentioned, again, Yes. on Aleksey, price X X, was that 'XX Tim January that prebuy a pre-buy was a head price increase, that that of there ahead

in reflected comp So that. the

Your of from next question with line Viswanathan comes Arun the RBC.

sale, margins impression range the under I guess off, think more were EBITDA the I Architectural on was that instead of So X% I the X%. in first

million verticals on And 'XX-'XX, be your EBITDA. Are forward? and how want factors like of guess, volumes maybe and industrial we basis. or you'd to sounds kind should production. growth maybe that. I automotive Protective Or how your the some be when main those rates just you going But in of it of your structural the here? from it's looks for at production end we're mostly drive end at evolves X even kind forward, kind general, just It think it Marine line that by secondly, be like lower very Packaging, maybe implied top like think about industrial of to volume the looks I levered then Obviously, and aero $XX about industrial of the a growth, would So clarify of other can impacted going and automotive. sometimes upper like to going maybe

question it's take on And the Yes, latter, said. Arun, Vince. you the I'll business. is what this architectural the more

all go-forward supply business. all do basis you on multiyear be on we're and selling business, alluded X% business. a sale before, math do a So what that organic math, basis, that to numbers the as have to the we that that in agreements X% the EBITDA if of Tim will the liabilities, all gave basically we get our clean a numbers. you the includes exclusive the certainly, is And do And again, assets,

relative And have look general we at up of to that will X OEM the have to down. into a progressing and and we've in auto volume But enterprise, and carry likely certainly, QX, to been been -- of we're X growth, X kind Yes. QX. number the positive, every positive And flat if businesses and the we're detractors quarter broader with that up growth. industrial

So nice we But yes, positive the us to do businesses there momentum other those X in are down and expect some gives continue. uptick all any leverage. those

it's I than rather that's combined and -- a more industrial. So auto story think really just

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

the Your Chris comes from next Research. line Parkinson Wolfe question of with

of pretty 'XX, probably results how obviously, whether on back Tim, focus? across respective at get you we PC have you've that that to growth should content a how even rate and importantly, up? think can been based I be ultimately, pretty it's ex Marine, you and step 'XX to a are cleaned American your down investors end the Architectural, actually couple take last we years when I kind volumes MoonWalk year. when outgrow conceptualizing be and a when markets then that's and and now into generally busy had you comfortable But thinking North have of you of such about And products, Refinish that how that more you aerospace, tell should look the the don't over new

let -- this Chris, is me Vince.

just real a Let here. quick. I had quick start me comment

architectural you line. U.S. If at it look business, has the on the grown nicely top this year

call we've that to since commensurate in investments growth As year, February to our we top the line. alluded on talk get the we we throughout and as on made to investors certainly talked

nearly the because as line year in So grown top hasn't as line in investing much the bottom this we've business. been particular the

you, helps I think, that go you through the So on as your algorithm PC.

bit that of one we of that's why one, to to because were But it reasons point, good successfully that a momentum in gaining top initiatives we're on selling those buyer then also, it shifting just rationale the the investments the and from sell first it resources the some the To able for that that Yes. those is validates line. we're as to in business growth elsewhere. in that investing of place opposed a

the higher mentioned momentum I'm but company that 'XX-'XX that and a actions -- now taking, term, absolutely portfolio have gaining we're and longer growth a you convinced that with will So we the combined we're top line I why of that's last for sharper a I growth And talked about bottom company. focused those much more that behind going line PPG numbers kind and stand growth higher-margin forward. -- and year

for which we in we but some were were management big and some businesses controllable, invest or our our year is what complementing they drive to this macros how it macros, how and self-help we're with growth controlling capital, EPS. capital invest negatives the the So we for us, places growth can

line with Jefferies. question from Alexander the of next Your comes Laurence

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

Yes.

I think don't I reasons. there's of influenced the think a it's anti-collision number technologies. by heavily

are The higher. cellphone great those claims offset is driven in they're by, drop unfortunately, by particularly are driven. technologies, one, totals driving, frankly, While distracted more insurance

under driven because are getting compared insurance more and just replace not claims believe, maybe insurance less repair claims of to broader type because and there's economy, claims. also by claims Also, rates last X think those coming It's transitory back, those down, economy, so think a X this insurance I some driven consumer turning the of is interest gets believe and the that in folks the the pocketing repaired. will improve. broader item, rates transitory it as others the I instead affordability just control, cash of historical. going up And I they're are of we're given miles their turning not in confidence with X -- I as come inflation getting -- those are

Your Berenberg. next Ceccarelli from of with line Aron question comes the

the on from talk QX talking very little comparable The and Marine? understand Marine, for what's QX, changing great, would is that? a would about Congratulations outlook And sale. basis not how little on in see update a I Protective the about Maybe for you a can the you and different in change to slowdown. bit like bit strategy you be there? also, if can you're

been this great to Sure. us. a glad it's doing get because question We're business about for

sixth organic we're it's on and our accurate X, to straight Protective Marine, of beginning in upticks, well. of some this when and growth volume I last doing the particularly really that backwards you But think I'm growth starting late and comp beginning quarter year. of strong year go

near-shoring good we of a lot marine There's LNG shipbuildings feel So of lot it. aftermarket you've got got of lot infrastructure spending. about you've spending, spending, a a spending, returning,

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

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

Your Investment comes of Jaideep line the Research. next question from with Field Pandya On

or about know competitors close to are there add potentially I about exposure is Europe? now is do share But regard? intend back share sorry some this exiting your last given goes towards doing have X highlighted of in you of also shifts second packaging, North in question, year. there then maybe Because other that on U.S. still any other a If profitable business are their Deco because competitors Deco gained, or you expect the to What share? and gained been one you in you've we competitors your strategic business, your around a And further review America. is Deco growth you're to business acquired more bit that the think have but there zoom a I negative reducing than guys. little skeptical of your packaging Tikkurila. ones the packaging obviously should some that steps you has question the very your you've I now on First to Europe from of strategy the just Deco one

America. North that. on So again, once And just double on well check wanted to done selling

one. want you, to here. Vince, Thank Jaideep. to first packaging this the take you just one conquer take the divide and I'll --

is transaction of where good closed the strategy -- a cash proven now but well, completely behind our haven't clear, record earnings, we focus strategy yet, #X, track where world, #X have rest on obviously, good delivering that So to in growth. our those is a of Deco us, Deco the it's countries this or very and once we we're good that strong

countries, we're deals, in from and from so I #X Europe, we're specifically, other believe, #X, XX Tikkurila, countries. coming some coming in and And of that strong other some

Europe that even the to those mentioned I earlier that the Some in profitability will further. improve businesses of self-help will apply

adjust. we'll So

like those strong have as that putting and and strong stay #X as We businesses in good we retain will numbers up #X been keep we position. long

Mexico, lights out. for example,

we're and position, Asia #X #X other places, strong a have got a In shooting we've every position. lights Australia, out quarter. We Pacific, strong

opening core portfolio, our and investing. to important remarks, in are said my those So our businesses portfolio, to we'll keep as I

about those in criteria Now said, not we'd well-established very got position we've it yet just described in assess It's Deco. M&A we shareholders little to fit recently because asked our that -- potential things market competitors. Packaging, But just I on only at Europe come in will look Europe. -- the we if have and be responsibility announced we'll Vince? it interested for already by would only that you them. were that probably a One, that ones our to the early the a

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

on line So in our what as talking to positive based top well you'll with 'XX see comps we're respect packaging to customers.

technologies the are our again, and up share. net why services So basis we on provide a the picking reasons maintaining we're

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

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

concludes This call. conference today's

disconnect. may You now