The Sherwin-Williams Company (SHW) 25 Jul 232023 Q2 Earnings call transcript

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

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

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

Thank everyone. you good morning and to

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

year in in results, strong exceeded ago. a similar Sherwin-Williams half first excellent laid the with out These back January. to excellent delivered quarter a results coupled performance second led expectations we that compared first to quarter the an period the same

our half talk half, Given about first will the a our are in John significantly second we just strong few and year which increasing minutes. visibility full guidance, current into

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

than the of strong. quarter. percentage remains our increased Pricing discipline lower quarter, the SG&A expense that year-over-year year over increase was prior though first

related by compensation with that long-term X% and second SG&A the Paint Store initiatives of Group year-over-year. and XX% of remainder to impact acquisition in incremental increased the costs in driven investments Excluding quarter benefits. increases increase was growth Approximately restructuring

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

same We margin and profitably all to reportable and three the Segment time. investing at sequentially business are in committed expanded in year-over-year. growing the segments

net the long-term We growth with near of also delivered per high our adjusted XX.X% adjusted double-digit share to EBITDA end margin EBITDA XX% of target current income in and XX% range. strong diluted

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

Stores you, Thank Jim. Paint begin the with Group. I’ll

and driven Segment XXX Stores to were of volume mid-single-digit Second growth effective Group by increased quarter sales continued margin ahead pricing. XX%, XX.X%. Paint expectations improved our and points basis

our by and oil Growth and of end extended by sales. high which which the Residential market percentages. percentage. marine was was Demand the gas industrial was digits of single-digit home with was led double by by maintenance, is property increased commercial close a were performers strongest up this somewhat both and tempered repaint behind being existing double-digit sales weak period up in our flooring by driven markets, applications. strong business, infrastructure In protective & pro-architectural and

saw New flat year. end were that residential start softer last of double-digit the a which this continued we at sales against into have reflecting comparison, year, the

on performing anticipated we noted, the in new though new focus continue would better be we XXXX, residential to and we as accounts As previously challenging are market gains. we’ve than share

high double driven sales single product were softer comparison a digits, by in both and pricing. strong against quarter, digits, up increased sales exterior a and up chain by perspective, the faster supply where of was business challenges. growing paint albeit sales were impacted DIY our Our From a primarily interior interior by in Sales mix. and larger Group the also exceeded with part our Brands X.X% mid-single-digit representing Consumer guidance

percentage. largest our America, low region, by Sales North in increased single-digit a

strategic in have our up in Coatings increased growth. for basis digits, sales with third strong was this here than America were XXX of we basis Group In sales, segment China up other completed Sales and price. Latin double down invest retail within business. comparison. to XX.X%, was points to range business be a the margin the Adjusted and decreased the were year-over-year. the digits single is quarter. less XX.X% in mid-single-digit expect against increases digits in but which XX% Europe. to segment points been Sales Adjusted continue regions, partners X% in targeting of announced XXX divestiture China the Performance double strong for increased We we Volume by previously low margin offset

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

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

XX%-plus Packaging We on digits against down described our last this we destocking owners comp. low brand the sales that a were double call. decline near-term also by anticipated given

growth very to and feel market. prospects end continue position We in our this about good

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

Heidi. you, Thank

a As have first we year. expected the to half said of January, strong in we

and the those serving employees focus our our continuous to their I and exceeded improvement XX,XXX expectations, for of thank relentless on driving team organization. want all Our for customers across

would of got year half to unfold a the are deeper know We we We the exactly work and said have as April make not better have does our call, painting we also we understand idea focused. into first that’s season. good where a might that good we a do, much year. we On how

front what the us. of we half second seeing Here’s opportunities we’re plans the with as our in for begin along seizing

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

enough here Residential repaint sales weak. regarding XXXX. existing us X should weeks visibility There’s also are for only on starts, optimism based meaningfully some home new be about move homebuilders the needle it but likely X contractor in to though be from and recent good us as residential for feedback, to is to remain won’t

We are completions, slowing. more which tied to are

we second volume to are new will share, While though for year challenging confident full down in in in the to we range growing come residential the January. likely closer we year compared down XX% the we us half, be provided high XX% to digits are expect single will

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

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

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

not clear are are limited. soft, expectations opportunities therefore, do very excuse be our the that on and our markets me here. We Let accept

influence environment. share of But macro not Our conditions, know We aggressively report we and in in the wallet is job market to we share pursuing but results. every are to accounts cannot to drive gains. of business, defy terms gravity new opportunities

Moving cost side. to the

by now costs expect are raw down in be percentage to to to material XXXX. XXXX We high mid- compared single-digit outlook. our We revising

see to though expect widely. will ranges commodity vary the categories, several likely across We decreases

mid- to costs, including be wages up to and other range. other expect input single-digit high the We costs in

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

success. As a expect increase result for of to the double-digit high the which We will in range to enterprise-wide the year-over-year our customers’ year. SG&A single-digit full now drive in investments, low be these continued disciplined and

our justify future above-market past, we the in will to highly taking are drive now. in actions the confident As are we ability and our growth, returns

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

be For percentage. a volume the to single-digit full up low percentage year net low XXXX, a consolidated sales a expect we with single-digit down

full this third deck Our issued the slide sales our quarter in for with by press segment are year release the the included and morning. expectations

approximately increased the reflects per also increasing first our and share also net $X.XX includes to share. to in full while of We share. uncertainty moderating costs to material continued targeted half outperformance, pricing accurately raw acquisition-related discipline are in guidance of actions be the half income of demand environment. net amortization range expense our expense We It acknowledging share. believe per XXXX per range the $X.XX this restructuring $X.XX diluted announced second related per year ongoing includes previously $X.XX This our

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

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

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

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

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

from first from Instructions] question coming ISI. Melich [Operator Evercore is Your Greg

line Your is live.

go love that, the Hi, that the little bit third thanks you and to great still into deceleration I’d into quarter. on a congrats expect a guys quarter.

expect flattish, be of to volume in sales like down that are us sounds you’re little deceleration to it volume think on color kind that kind more a we what I And maybe would of you expect total seeing? why give mid-singles? low

Yes, hi, it’s Greg, question. a I think great

choppy. enterprise just as I across if this you characterize our qualify look now, this entire right think or would I

low I to by division, region. our it When down volume break you think that’s true digits. by is both down, mid-single

offset Remember, look down Stores that’s you bit new confident with a to against single-digits, at but low a to seeing. comp I’m and in If some residential here. that really but the increasing XX%. starts say PCG ability I market our confident of tough seeing growth would impact by Paint primarily we’re Group the we’re of That’s drive above the slowdown that’s in alone that CBG, heavy due both

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

Yes, Greg, this pleased Al really gross our margin. performance Mistysyn. we’re the is with And of

As is target a XX%. our XX% reminder, midterm, to

increase we our in offset past, environment, raw the help and those the to And dollars. in our business. in seeing the we that our make materials about margin investments drive as – cover value their talked in continued have start to material we customers of we helps we price us gross inflationary benefit raw then to moderate, As pricing put

So this segments Stores we I Paint margin second that Price, pricing third in to I’d the in plus what price September increases you specifically items, quarter, Group annualizing XX% other saw what in the be as have quarter. we’ll to other our – start the gross the the put similar sequential expect saw in know, in.

XX% we’ll bar year, move I time. in then the for raise Group evaluate get the volume look in is full XX% to range to up. range, be as depending So where to that on Stores as margin, consistency over that And our target think and that know, could that you And range. we XX% XX% gross Paint

Yes.

last our driving just of And a point into that that and some the that as the There’s that We reviewing say margin. product I’d on every we from country we we investments we drive shipping our price. say inefficiencies point to the customers everything the goes making, programs X in of lot a the I’d have, year simply to addition activity inefficiency. not the doing regular talked side we’re refer made, the we’re that on of range. So additional steps current just It’s to into a operations our serve other. the we’re as about that mix were Al in basis taking products, that

And to as to so continue continue supply that our chain we expect well. we drive optimize to as

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

that’s Yes, correct.

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

That’s Good great. luck.

Greg. you, Thank

Thank you.

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

Your line is live.

give past, got back I you if the just could in forecast? help of it understand the could the for terms done half back this the that I in SG&A what questions you. year already talked into better can of the then year? know you have about Thank I spending we’ve activities – year than than is us year, this on SG&A you’re more SG&A. And but details guiding secondly, guidance you in or this incremental should two you us half guess, of targets? first, for Do to out get play the you the what

off Yes, me Vincent, my then it the I’ll kick of let into ask on some get of details. kind thinking Al and to it

these activities on the even reminded competitors market opportunities. seen as closely. First, that adjust the are we cost, competitors. market our opportunities, and things And just the our our missteps And these you We’ll conditions. we’ve that shifts before. investments competitive trends We and all this of activities the are opportunities, capitalize going we make, market, the to monitor to are in mentioned,

part from point, you to data roll of all as our we trends and expect to should raw material these what see set, Sherwin-Williams. into So are see your

We’re to be going aggressive.

are you drive We’re we’re advantage while your market we going strategies, in adjusting shifts. of take others leadership invest And it comes your when to have confidence down And share businesses. invest. any team confidence think I you their do, and in strategy can in going our and to to like

We attack. the will on be

managing term. you operating and all margin As know, over long we’re growth about operating the growth margin

SG&A will comment say, we So goes done on. be would as about second the your no. I with commentary half

as Consumer is think our And the thing as can that. model across of see our service about the Paint sales very each at gross above and or the field Brands at we both demand and and expectations, in performance segments, beautiful half. We’ll look the environment they’re how we be at we’ll tech I volumes the look unfold within with margin Pro agile the Group. reps second

put margin we’ll in our higher initiatives of long-term outlook, drive we if returns. current a more look investments So we to the have what share than to as a market higher gross in growth our path see

Thanks, guys. Appreciate it.

Thank you, Vincent.

Thank you.

McNulty question BMO. from Your coming is next from John

line Your is live.

morning. good Yes, question. my for Thanks taking

flattish had Paint the Stores in for looking kind been guide. of Group, you So a

Now better you major the group, where sub-segments are expected? mid When guess where up than kind you the out working most, single-digits. for things are at of you looking of high surprised I are to that you look

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

to of of we’re XXX terrific deeper in there. we’re of We more for growing, flat executing. that the sales that, experiencing builders couple share It’s expect homebuilders and about as and custom working in we’re fact, talked And success, continue penetrating into quite on are top gains we this well. the believe, honestly, even last Our to quarters. quarter, some grow indicative the I

We to do. think that’s the our continue more make to to key core I solutions builders bringing of behind execute them these successful. And strategy we and on everything

innovation, So into to our even help they’re them costs. that substrates to the builders defray in in we’re bringing consistency, chain in adapting help as area, different supply the efficiency quality,

to for working are have with coatings them. them We that the ensure we right

people. talked Importantly, about I our just

– very are platform our builders might wherever unique. builders, contact And stores area close and they they’re stores but of we’ve got they’re our distribution pursuing, not our only our where with and a job in a building applicators, this want our to that think staying is I their reps whatever fantastic building, and in doing where are developments build. are which they

out if invest will not you. we’re with you there So invest we’ll promising here,

are capitalizing are on our people and there that. there, Our we’re and assets

So we’re share. growing

We have originally decline, not experienced projected. mentioned, the depth we you of as

softness see Although say the do to I half. we second would in expect

You I’d our here the demonstrates position we talked and very And about highlights say controlled we’re I and our the side, distribution. our think to favorably it experiencing that. this advantages the think company strategy of good In commercial commitment again, absolutely performance. segment

We expect the be balance of XXXX strong. to

inside We’re really on the focused going forward. sub-segments commercial

this really of value So controlled the again, leveraging model. distribution

we’re dialing And wherever or our tenant be areas there will reps could that opportunities be in are in might teams specification now those shift know that even to going be dry areas that Our provide be even up in there. those could commercial, that into might it strong and within areas. We opportunity. build-out those really

is another I important So talk focus repaint really the pay is for and us. to that about. Res will on believe, owners, again, applicators, think off the we our area specifiers

Heidi. it over me turn Let to

to double-digit we share, But and And of especially confident we what we’re here in we’ve do, this we’ll important environment. how Yes. growth our complacent doing that you we’re segment, know, X know years to it’s know never this as in execution. believe in and had take

prepared coming, it’s being While in as of know by period the currently and slowdown extended week we tempered positive, also remarks, our we is a existing homes. by, mentioned it’s

about us. paint category. are will challenging bidding having as inexpensive deeper lot growth environment, trying other where very and model, previously, not, believe profitability. continue a outperform highly normalized. or actually and year, brings opportunity us times to part, and are tell in the and contractors these a you dig In it that helping on for about where impactful our There’s good to adversity us focus an time business just controlled to that many them that in allows next it said really So been since taking large not this we them sell their even our activity to I the categories somewhat about is that, will Sherwin-Williams, and product, speculation for has of of And but they intersect to believe talked

approach we of get important talked past, think, but lot the working data the have to surgical rep thoughtful the this it’s making We these specifics we talent the John leveraging opportunity as mining frontline the sure in here. got be is that we’ve But there. and in getting or in a data for about that are data won’t out advantage that details as we can team we we’ve hard, into contractors force addition the that and taking I that mentioned here, of talent our and so very very

continue share I to fairly the focused but Sales comp. We John, gains up relationships continue note this is in at the with that very this stores foot here. QX segment. that, on to a DIY we currently in against relative I’ll our are some were And don’t on traffic will been aggressive specific to maybe and expect P&L. stores. a there to we positive will touch brief just these confident soft pace, that And to some digits question relative we briefly stores. your see on think, So was building hit double

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

business and it’s here, stores than area for performed that to & was not team. marine in one we expected. as would us well. that that say a good that I’ll performed our better Protective stronger So another say our I

would more from our expect team them. be answer give the We I’d

Our area, business, That’s and core as example been for double-digit making very key in been business well are pharma, very strong helped terrific into have of flooring. alternative was energy. example, a expectations us airport and strong, this It’s this very has we’ve in extraction investing everything we number for We’ve growth. We’ve and we’ve our leaders announced acquisitions, opportunities even this But great in in team. high got investments get as in areas. been Energy some on to from us. really food all beverage, focus strong. where processing been another hangers, of

been We job of see here a us. very area for for plants done as as from well. to energy, as have nice mentioned, technology us good that the has trying I have in all aspects. alternative where we really activity business been Government for mega stimulate bringing good of chips is well

our as example, in the promoted a We’re wind unique heavy-duty taking marine very going petrochem there coatings technology as in well to that’s to opportunity a bear be terrific is one It’s bring to farms, been our into Northeast. for way.

bringing we’re So technology.

driving and it’s specifications business that a the distribution is bringing platform, We’re strong. very business of a strength

in I would that, acquisition recent just one flooring. John to mentioned add And piece

bringing but I this a technologies really that of illustration just specifically how looking the is will of if in portfolio think our we’re at like we’re both for a great for for well. broader proposition. not surround of infrastructure that that value the together as as at excited those and eventually services we’re I those projects, semiconductors, something plants projects look battery But candidly, terms

to we’re of advantage very that wave. feel uniquely we So positioned take

much the Appreciate Thanks Great. it. very for color. detailed

John. Thanks,

you. Thank

is Your next Parkinson from coming from question Mizuho. Christopher

is line Your live.

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

Yes, Chris, kick question. to Al. thanks I’ll your and it for start

You’re this the very of and doing do That feel entire proud focused right. We Karl is really leadership his on way. Jorgenrud good, team. team very right

bringing solutions a gallon is value and is and we’re not we and the result. bringing as the that if of do a is we in every So we’re that, And gallon successful. that we strategy bring customers to good our the necessarily focus to discipline our repeating. us for part that keep been as that customers discipline we’ve The

on segments, focused customers. key key We’re

and the participate we our to team introduce that that’s doing. more them And discipline as to a and doing to should make our trying help technology money. believe have is PCG what exactly successful the that. customers And in We’re But again, push result, make that. services that is shareholders

they a the to points. front X of of additional in progressed the And get when ‘XX, you and I’d last the range discipline costs, driving at raw with year that segment about price. last Yes, good still and the the while this in feel year, working made synergies integration Chris, efficient the operating higher price the volume margins that out took at of takeaway as operations We And and coming seeing bottom of have to consistency other leave were make I material on. get can ‘XX of were with more One, got look level. simplification look is years, and the the increase then accretive acquisitions couple you to of able at when better it’s XX% the being very they and those that they and serve the also PCG. we team a the in through number XXXX, activities you that rationalization, whether operating and initiatives, are at or their think that margin is, in range a we’ve SKU to acquisitions either into start XXXX customer they the focused on

you XX% think those ask hit on a target. is trajectory and I that to together, will put that more from So And for then we things team there. strong

just Obviously, progressing so but with frankly, you focusing plus? over given myself follow-up, Any frankly, than I And that’s you’re quite divesting? look helpful. XX there at be the the kind where have on update few better still remark, what still quick of years forth. Thank a a also, Just divesting a would and actions on the XX last generally step would we extra you it as just technologies well quite with as process? give a feel last, bit and obviously, and you acquiring. reflected update get very and any said. on? guidance a a Got take which seems X next just months portfolio, consider assets you in your it. very corollary in there don’t you stand so range Can are you quick both of the taken to there back you. Are things actions of little that you’ve Are expected. thought the When very which to

look hard is for And value, we areas What to bring that XX were focused six and would since transactions we we Valspar, we’re we’ve Chris, done announcing can that where bringing we and were our take those customers. areas. and grow on solutions to acquisitions in disciplined XX our rewarded a other divestitures. be want

divested the divested wood came Australia, We’ve Wade in Valspar. Huarun FTC. in business We announced One with business. Valspar by which divestiture came also which the announced aerosol came road the in that was Guardsman, Valspar. Sherwin Valspar with Valspar, we’ve specialty was So with we’ve the marking required legacy thermoplastic came the – recently with China plant

and high-value Here Sherwin, we’re areas. at on focused products

your for question on every And here. a good value didn’t lot fit portfolio. that we shareholders that that our to to help believe continues discipline discipline, can solutions that really drive done we will that our So customers. day continue with of But our while bringing we’ve deals

every don’t on map. about discussions just geographies. programs, flags put hard having discussions day customers, the about to We want We’re the a

to our hard those make decisions. We’re it’s shareholders. value sometimes create And for to here

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

So it’s disciplined a that approach take. we

We’re proud it. of

fit or to We’re has It or business. trying out book of or not strategically sales interested. just we’re to not buy volume

your Thank you thoughts. for

Thank you.

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

is live. Your line

gains were you think you relative Group, on Stores the customer the curious, Paint across as go-forward on Thank you, do residential of to backlogs the about think to outperformance a everybody. is XXXX then less morning, just your sensitive various is Good you kind what it to relates theme a to I’m volume sales operator. specific to than what common or you John, or stronger share do categories? that vertical existing historical home else? directionally And think that relative repaint, the could baseline? something basis be market thought bit initially as

to very because Well, I on and about I’ll Heidi throw resale working if the on take piece, first the how closely it she’s that.

for a our really college year. just spend time hit that mentioned. years. that we’ve lot We areas, and people had I because foundation X,XXX a on training strategy this this I want of of down this, graduates think the I there our number to comes I is We every management about recruit over focus Ghansham. program XX I talked think the but just of did to don’t

adjustments we’ve great recruiting best we’re lose in a developing appeared think we’re made and or our because the compensation our and retain that SG&A we’d So And we believe. investment, that And some people. win day training and talent, we was this to by yes, talent. every it make going we’re to

had executing. the say market and very It’s were advertised not they and They And and our times you people right some market, a else the and market when so our at roll. would would years out think, just when working customers, hot, customers there started of ask someone have honestly, happening sign There that to house now. I first with you so they a choppy the then were has talk they for in put are painted in X in quite what’s about up advertised never spin-off of been they it all.

adversity that market, the attractive assistance for the reason market. to welcome are over sales have the we the nearly we X,XXX and It’s And in painting looking reps with contractors in stores much looking Now that that. X,XXX we for more and look help.

by don’t We by market position our We their business look market, address and trying nationally. look customer, to customer at we’re our needs. at

And them good backlog to this as don’t book a wind rewarded. choppiness. some there uncertainty to of but is hold mentioned, as side, business, of I And and is that the a almost good get hands and of are so some paraphrase through there lot people is that. And there sales Heidi these the people our a of on result, we there the a customers in help important is architectural think lot there of

choppy the well So market. would That’s we’re how how respond executing we’re in in it performing really a market.

Regarding res repaint specifically, Heidi, that. maybe you I’ll have answer

Yes, good I the think Ghansham, question.

on value raise opportunity of back stay. the data highly in and sure about really to In aware project. I inverse the that. as earlier. the to inexpensive the to is mentioned they is which We go are terms the their earlier are that home is that impactful the think to true this if that that place, making that resale, I’d well, staying of mentioned choose those reliance I like they

example a be great I on how we’re the of able to not think resale reliant penetrate it’s market. and

are to an again, ability a for store, our category. space certain are reengage their are got X,XXX you In haven’t every this that customers while to terms team, bought for this that too customer. go likely the customers that paint us for more own likely region example, certain something without more earlier, differentiates or year on a detail, of – they that getting I’ll and the mining really Mentioned really back into we much our is demographic P&L in we’ve in a exact in that in based hunting give know data those the for graduates

lot sure making of are people or important in that out homeowner we’re respect approach it’s a contractor terms making customers. for So a being and building sure these really we these how the of that that whether surgical relationships a very

is in seeing extended wait. what as And softness period well, with I’d thing to Ghansham, existing can’t sales we’re you’re as that people seeing an the add one what home

as that’s also So think business. some And tilt. the them And that’s the times market res about a spoken whichever may to I of supporting table, business many we’ve as driving new new our res. way

and value these so inventory we it’s that find low, through we’re bring as in John telling great move and go res, think right new going you a how new folks as to the home build, to much we’re a I walked can’t example into how is simply well there. prepared because area

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

Well, packaging one, description to be confident. But would It’s technology our We as It’s really in with flavor position and customers. through This is been technology. would play. is because ability packaging. just QX. fits And Ghansham, about to its great non-BPA. working see going we talk well this that It’s perhaps demand about like it we likely it with through team talked from fantastic, unique customers. received growing keep plug that a and by fantastic product, if highly continue. a hear customers It’s our and superior We’ve QX, a a product, we of softer got your even the is very continue there strong really feel it’s overstock. efficient next-gen I VXX there, to protection really is and that

this It’s we confidence bumpy. to got And while hard. we just expectations, we’ve push business. So going high have in often be

our team. have with also We be realistic to

is is Valspar feeling you a bumpy. that’s with all and that we really on we’re got We’ve along stores. of talked really PCG hitting at auto combination business, about leveraging This inside resilient refinish. businesses some technology from mentioned cylinders, that might the together, So our look team the the unintended platform the Sherwin there. more good When it’s others. as rest be We of

same business value about bring are really there we through well. our but people Stores the and architectural Group, as Many direct we think growing Paint our stores customer, through automotive to stores

one kind a is that mixed business is industrial of general Our bag.

large soft. at products general building is look construction finishing doing as you such and areas ag If and well, where is

now, help and be right look you business, and of offer industrial are little going or look at see wood So one you businesses, every wherever businesses sub-state bumpy. but are this office, Coil, likely our that to say a opportunity, it’s a bit In general you is when Asia. again, two in there to around customers’ terrific in they you a team Europe even the But other industrial little down is share responsiveness regions. needs than that’s holding market a bringing would unique I decrease had Coil, a bit in largely and market. North grow better way we a driven us that America a up a by

much. so you Thank

Ghansham. you, Thank

you. Thank

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

live. is line Your

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

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

Okay.

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

And level Would when XXXX, base the general higher you be expect lower do be or prices your or flat? for of a to businesses, case, across yes. you highest, look as your

Sitting here today, Jeff.

talk raw as think because pricing we’re maintain pricing ability of our to to about moderate we incremental We talk continue that and I materials solutions XXXX. the ready drive. pricing about don’t our for to the

our the We know, first you total then – the don’t price need discussions input if we or customers have And we any price have determine them we’d as look with we a at have price. basket to need a cost to talk Street.

talk time and we So next half quarter about over XXXX to the quarters. have

you, Great. Okay. much. so Thank

Jeff. you, Thank

you. Thank

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

Your live. line is

you. earnings between how should we half QX second the morning. John, in terms Thank of and Al, cadence about think Good QX?

the when at which Yes. look through David, talked our drive limited. is our demand, I and half mean, visibility earnings, as about, going second is performance you the and John Heidi to

So quarter. of line we a third than our have second sight better in our quarter

of I We as I – give to don’t EPS not will We’re quarter, our historically a in or which impact other architectural gross margin note, done. has it a do would couple our EPS slowdown quarter. we expect guidance, fourth fourth give in things seasonal but don’t see

quarter, is believe would this a is half say, what stronger than I to last second I of So typical the X years. that and the I’d quarter more typically third But year continue. some that expect a our is

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

to start want I’d think that. important it’s everyone. single to series. we’re we think every to single us, world also that the customer series. I win realist. But also the to want day play how you we we And every for We Thanks in every Yes. sweep game. important understand us, is with

expect out. great and the perfect best a throw win momentum. is believe to the I’ll pictures one of this, have to going our a we best shut were team, not resources to you We’re every I But game game every tell

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

very much. you Thank

bet. You

David. Thanks,

Thank you.

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

Your live. is line

Hi, guys. Nice quarter.

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

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

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

Yes.

and for the next even I new they I’d residential the before to it’s but homes you that going be be at starting are come outperformed, about that we’re painting year start say likely prepared are remarks, as challenge balance my starts those. a to I back, that little think likely in expect talked suggesting ground the in that’s we today, if to residential, answer. we break year a we’ve Housing new future for example, look bumpier. of

here don’t bouncing I so probably say around little bit. a – we’re I’d And

market what right between I’d QX outperform soft, to that is now trend it. goal approach has the about But and say QX likely been our will where we see going our happens. We gallons, are. forward is it’s to going as And

Yes.

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

a So as the talked about business, Stores comp, the say Paint we Group second by tough by has choppy, segments, region. when other I’d you it’s are and think half, about,

in businesses have some out. bottomed think I certain regions

that is a challenges in our call. first into discussion as that’s there on whole than Europe that Asia what half. January do to in example, see we we Pacific. half, in I an year-end XXXX, as second our get different we But the we still think will have better we expect did

an would that, strength the I backlog. piece indicator add I think, the One is of just of to

these I I the solid maintenance and customers. say look we’re not at stronger you property across way with interacting more backlog, if PNM. just commercial which it’s it’s and also backlogs the in think would And

last these close large of ever before, part than been also based which it’s We’re on based a is the but our model, controlled customers to of on few we’ve distribution of coming years a out lot challenges.

planners we’ve all I think better together. essentially become

backlogs those in confidence component, customer, closeness our gives our the a So outlook. the me of also to but lot

Thank it. Got you.

Mike. Thanks,

Thank you.

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

Your live. line is

first really through point on of the quite noted of I maybe there still guess Could that different but in you out I backlog new question. few us side limited jobs follow-up my the started you PSG? after year, taking as a market the in on backlog. for know far potentially when with some some half, segments then kind Thanks it as you across seeing that the was wanted last that the that. provide to I backlogs you’re Great. just

that? a would provide more you So now, bit granularity characterize little can if Thanks. the how backlog you on

in I’d jump Arun, I’ll say here. Yes,

think you is think look points. I two I Heidi if at making, points that is the there

little bit but to is there can on X another property don’t choppier strong strong. see commercial, if strong, look very One want with the it’s to DIY resales, that but been you asking element You’re across see and maintenance we good but out so that one months a okay, comps, X expect we say, this. repaint, a I has continue. various softer question, segments to we is to tie here residential

us share, market grow and to to for opportunities are those of all we think continue will. I

that was is when had in point, though, that our have she I much opportunity in think ways coming COVID I wish quite that, – would I with that to we’ve that talking she’s other spoke through think important closer honestly, shortage customers and The in I is a store. I the worked

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

I maintenance, see started months their we slowdown CapEx the as money likely to new homes little its leveraging segment, residential works phase say, freeing that up. we’re to that the way yes, down by painting Property the So slow bit would weren’t X fact a ago. is really the of

for I described. Our as national us agreements the are others, and opportunities

diversity and of lot is thrive the in it’s we a So market, market what us a for because on. that’s good there

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

Arun. Yes,

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

goes TiOX, them those question costs to little in we the a bit to on. positive a still regard us, see elevated starting are trend expect but more year direction With as there, for to your

being TiOX the pricing. Some to little tightly. see ones. costs more of of And or some believe also I’d elevated we’re soft to are the we suppliers some one going to capacity But going input right demand see trying manage on main also now, bit see and TiOX their in expect a to you’re key here, are chlorine with say the decreases

Thanks.

You bet.

Arun. Thanks,

Thank you.

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

line live. Your is

average midpoint us I what morning. hoping half the at the just half year when is implies help you X Yes. on When is be Good at to X the is first years. bit. versus look going guide, down up the of to look and EPS. triangulate But XX% that you X%, a this your be was could little of it’s been you the last for the back it years, up X

a will the So to on a just when half. add materials to be the that negative second the basis, triangulating to that first new be hard a down time better versus have take I the you earnings half enough big second first. sequential resi raw in should half

second be talk just to half? you half what might first through negative could So, else

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

so also and lower Coatings And you Performance in Group. in volume, specifically a our see consumer

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

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

those So, are that I things movement. the are that think sequential driving

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

Yes, back XXXX. to a normal Duffy, will try go year, I to

think what we But sure Performance less Coatings is. I as to continue growth in see I So, am to your not Group, normal point, our that’s seasonal.

not as get we move You we first an in as Stores typically our see of the increase our Group should But half yes, brand, might brands see consumer forward. you back that. business if half our way big second to versus and Paint

Okay. that investment strategy mentioned. Al I just the I add to guess would on

XXX-year-old are a We company.

trying are the run a for We company quarter to not perfect here.

in our we running. base that It’s proven strategy. strategy growing proven proven confidence through We are a facilities leadership a have got the with team, asset and and in stores in

we quite we frankly, to are We that. invest do know here. are And a played point, what of going So, Al’s And to game doing. we to going long are into it. more we

you, guys. Perfect. Thank

Thank you, Duffy.

you. Thank

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

is line live. Your

guys. afternoon Good Hey.

give update Just been trending? that’s on curious an Paint you Who business the and Pros if how could

Adam. question, good Yes,

I strategic throughout that’s lot our of partners that and in the is certainly there reps with are alignment how – the hear a have retail a we this you that just how won’t here aligned. out, into lot making of the the understanding certainly events think partnering to and the But get lot lays gained certainly is started from confidence that that share. aligned, because of we partners are think It’s growing details following planning level go. data can relates an calendar growth standpoint, for lot it – interest that our sure key the the growing with as the are certainly collaboration year, are tell where we be laying are getting I aligned, of to structures to there. got in of can the those to I confidence retailer I and And a a investment

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

journey will I question. great tell a you onto it’s itself. Yes, that, be that’s to a going

we to thinking general. Jim how lot earlier, mentioned I having a you that the – team. The supply about truly question you more and is when say of all that are asked mentioned some it, we and suppliers. mentioned we the true with there Coatings in raw the our sub-supplier So, broadly was looking end. defining distinction at we Al we relative where kind level end as back how all and this bring when efficiencies, our sure think understanding about supplier global our making well, materials earlier, between asked really transactional strategic I is a detailed to certainly this say are to procurement supply are strategy, the for would from way groups look would are Group, for step Al the are suppliers conversations chain and Performance chain looking

simplify we from manufacturing a optimized underway. us end. And puts more way having in continue very logistics. I that conversations So, from as if But much standpoint, efficient and the the and an it mentioned front take are are efforts operational customer-facing as imagine, at you basket, rationalization Al our a the efforts those through, we you all rationalization the then standpoint important can

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

Adam, capital also I we but thing to efforts add and then capacity are would only opportunities focused The we having back at into not these capital increase so we put that that, to is reduction. on to efficiencies, for talk are capacity also about working our looking

capital laid allocation about on a talked – that and also and divestitures how assets. our of to out our cash back the best John targets generation part philosophy, delivering focus strong So, we we it’s utilize utilize our really our and

of luck. Best Thanks.

Thank you, Adam.

Thank you.

Your Spector from next question from is Josh UBS. coming

is line Your live.

Yes. Hi.

a working and just follow-up on specifically So, capital inventory.

stepped hundred mean – your million I down few inventory a So, million a sequentially. few

Just for you you half what and are in inventory you of if what really inventory Thanks. curious your to your level say volumes for year, of are destock expecting at means have you capital through second working or the that terms continuing if right volumes would the for expectations that for XXXX?

Josh. Sure,

gains, you case selling a mentioned. As summer we we typically the see inventory in sequential get into will our season, decrease as the is as

quarter, see inventory more in back is And – you in a which that historic are also quarter numbers think our build typical. prior to will we sequential levels. to I last will but third to our to decrease year, then similar similar targeted fourth our

half don’t through far maintain said, I So, I feel next where our year. at production want very to today. the That will good inventory. targeted being that ahead us about too going inventories second we are get adjust year-end to into

monitor will closely trends schedules accordingly. and we adjust production demand So,

We will XX.X%. try target to year-end our back push that towards working capital by of

that’s what’s accounts the that a forward. production of we the that driving target payables get But XX%. back lower our considering is will XX%, of to going XX.X% think little increase capital working be towards over because difficult I going

Thank Okay. you.

Thanks Josh.

Thank you.

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

live. is line Your

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

lay Yes. interest we a are truthful I with would Steve, you. out be it’s our I investments leadership in that team. say exactly where don’t to think proven to have our best

And time. that We the brought long a many areas topics at see and you invest. opportunities, of been investment. this have up for are We of we

our we are our retention training of to going securing in the people, yes, the people, our people. So, invest of

to are through stores channels us. are to and reps our We that going through other add important

and investing digital. innovation are in We

any – the we a to when quite be deeper believe are can do we that on able to We going than discipline proud have that demonstrated that. are shareholders that. our specifics investment we get But very we and not to make frankly, an into count return, and

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

by partially – that. didn’t offset offset mainly the Steve, we the we the If We reduction absorption ask cost second to said, we what rebuild redo lower better lower me second low-single I raw I year, like is had wasn’t raw in to costs. production last we Let digit and material have And said in what because inventories more had had digit volumes that high-single in had fixed if than because those, that’s correct. quarter, quarter.

schedule at more than typical So, we production a year last this are year.

the would little material headwind maybe bit So, that’s benefits. a the of quarter what have versus in raw been

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

you. Thank helpful. That’s

Steve. Thanks

Thank you.

from Citi. Your Patrick next from is question coming Cunningham

Your line live. is

you. Thank Great.

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

about talk will I capacity. tell you capacity have utilization. don’t this that some we we added Patrick,

XX.X% in ability we that. confidence have talked about in be we taking do customers’ responsive have range, Al’s the capital working more our down, to When we our down that got comments So, to to needs. ability getting about

we Heidi efforts the to on While well we operational side service is that go the company leading to as improving as capacity our simplification the as customers through the that have.

Thank Great. you.

Patrick. Thanks

Thank you.

coming from question from next is Your KeyBanc. Aleksey Yefremov

line Your live. is

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

start with will that. I

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

as are up in So, stores. traffic we earlier, seeing mentioned our I

side consumer you softness the on and see on challenge well. this the brand will the think as I

position into have inventory. of strong We gotten back a

state, in activity through of the You drive year. that’s more the still in But current balance traffic. the some that will continue see an some effort least to of happening promotional to see softness coming been at

lot. a Thanks

you. Thank

you. Thank

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

Your line is live.

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

percentages right market is is us. large about us. slowing there expect our an say, lot going are a remodel percentage is a In might of business, quite small this increases frankly, talk opportunity in happen We happening relatively now, a that share opportunity business. and the a this growing from is standpoint, most to our for the new that but you people be business, And for and on to look grow. Lyra at I what’s on predictions truth if what’s And a told would there

their dollars and part our growing that the partner And as importantly, that continue strategy So, to we interested have percentage-wise, customers, we increases, home the a are understand significant center are a increases those I expect this. be believe can of with think there who as model. prefer are not to project paint they where in we here, we particularly customers those

cannibalization. stores. of question And about into way concern those their might our customers a the find is Some natural

with concerned not that. are We

of a We put that pursue to using the opportunity who will, business significant you up, grow is will that remodeler, partners gladly us for a paint share to project. is knowing on there our with if

to going it’s yes, So, grow.

focused We we determines’ with on combined. are our and are it customers, group

growth. we positive expect So,

to I declined roster? John. that timing outlook by appears XXXX your is for you perhaps million Why if a as changes And function it is the though may, $XXX Thank Yes. of project secondly, to CapEx Al, for any million. $XXX that, meaningful that or

Yes. timing. related to it’s all Kevin,

had still are forward that the about this We moving expansion with we Statesville talked earlier year.

that that packaging expansions still with about. warehouse and continued moving automation we had about forward the we are the talked projects We driving capacity talked

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

so Perfect. Thank you much.

Thanks Kevin.

you. Thank

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

live. is line Your

Hi. Good afternoon.

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

a Yes. question. Mike, it’s great

acquisitions foremost, is making that And is the to a are would integrations of first on, earlier. whole say there think focused laser and the customer. these host I team seamless I John sure mentioned

We team on level. focused at are the the very integration

them the and in ability of – at – look across our you technologies, been focus those or quickly transfer the cases, some that when I able an moving country of of that outside one have products we been region moving to to around get are has acquisitions globally. our tech the so area think necessary some across and

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

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

about consumer the in side You Europe? talking are on

in yes. Consumer Europe,

Yes.

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much. very Thanks

Mike. Thanks

you. Thank

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

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work timing So, time pricing they to closely of lead agreements as that it have adjustments varies any that the as we have, just much to by our and any customer, to ensure we possible. customers with

Okay. Even homebuilders? largest the

largest. the Even

Thank you.

Thanks John.

Thank you.

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

live. is Your line

was year, The X things half X of two full first you all, on if first raw material? raws. Clarity what to of could, on the

Yes.

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

half it’s more loaded. first So,

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That you. Thank makes sense. Okay.

you, Thank Eric.

Thank you.

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

is line Your live.

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follow-up Stores little commercial. Group. macro you It of Paint seeing contrary some commercial choppier Just to runs the a within in that’s strength been bit a to bit on want on are the

particular maybe So, share I that am over just yourselves have gains is wondering vertical how been to? you much of exposing that a versus

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working build that hand-in-hand the are of the to our rep the their would service with and And that needs. of more reps our those market, customers. that team. our valuable I so customers facilities almost And many sales reps say we as see the is challenging more would our part

think are growing I yes, So, share. we

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

more back are they normalized say would I levels. to

do that and on to might I in more that and think are you and will that some size see, willing contractor, smaller repaint depending that be the and the on resources support of in some governed and have the are labor. by size the resi take labor more shortage the to

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business from of So, of really trying help their to an them size. the maturity entire standpoint, regardless

Got Thanks again. it.

Thanks Garik.

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

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concludes Thank today’s This you everyone. event.

for Thank You day. and have may disconnect wonderful at this participation. time a you your