Simpson Manufacturing (SSD) 26 Jul 222022 Q2 Earnings call transcript

Greetings. Welcome to Simpson Manufacturing Co. Inc.

Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. follow presentation. will session question-and-answer the formal A [Operator note, this being recorded. conference is instructions] Please turn over the Kim now will I conference ADDO Relations. Orlando to Investor with host, your Please go ahead.

page of ir.simpsonmfg.com. the statements available or note here of to and future Eastern extent was company's press company's is any earnings X:XX of of the no undertake Relations future Co.'s to results or will new gentlemen, to statements reports or the based obligation forward-looking also on Any Actual replay on vary risks number the on statements a materially forward-looking expectations we the release SEC's Today's expressed of fact this at uncertainties. page filings which not and relations risks press by to ladies in those may implied issued company's the are on earnings the P.M. we conference Except are on made statements. Time. or website call investor and the required publicly and Please a that release from certain to of and and described otherwise. result afternoon, XXXX available earnings revise public laws, is Investor events, whether as securities estimates and company's Simpson Good We a read the that may are are Manufacturing update the webcast, that information, today are website. by approximately statements applicable company's at encourage you second the call the forward-looking quarter The being available be corporate call. Such today welcome make subject historical statements. website.

conference I Now, Executive like Officer. to Simpson's Chief the over to Colonias, turn Karen would

our our financials fiscal greater growth to everyone. drivers capital for initiatives update you on allocation outlook priorities. results quarter an begin I'll XXXX with then afternoon, us key walk overview detail. an and performance and before our business Kim joining turning through today. Brian second will good of financial Thanks Thank and and you in

As from a of ETANCO, been leading, as our tracks. team a plans together cultures our project been and we the in focus, pulled well market April We December, primary it multidisciplinary transaction external includes group, for initiating for has recognized advisory develop Xst. back integration many acquisition we primarily of commercial has plan. key fastening of completed that and our ETANCO both Europe globally our throughout has fixings planning construction in announced for management consulting building already a and Since team specific according office and we you Simpson working of each of to together on ETANCO. been integration know leader the solutions, extremely progressing a of together combined late with values, Because complementary detailed management our and

opportunities. very no continued Our several retention found to approach synergy previously our of After high has a to hard rate transition. have adjustments throughout were work, we material the identified employee pleased months

realization Europe. full of environment the current is on based subject in the Although amount change to

XX.X% sales financial the far, years. so year-over-year. to well-positioned performance and synergies those Net in are We With groundwork $XXX.X meaningful benefits the of capture million, the we've we in believe delivered laid we quarter second from still coming strong operational increased

of sales. in $XX.X to which ETANCO, Our million was contributed primarily our sales acquisition growth attributed

was in North we sales material America costs. product Our relatively increases rising all further XXXX was price from throughout mixed offset across Notably, and flat distribution Volume to channels. of quarter. benefited is and raw our and includes repair, customers, where DIY was the slightly which channel, in much and our see volume up remodel, business of during center both co-op we our home home center implemented our

distributor offset contractor our customers increase. from this volumes Softer

as Our cost, the negative sales in lower the in product increases year, for from of offset by due primarily consolidated ETANCO increase million, which from to as were the overall XXX.X% significantly U.S. contribution volume rise year-over-year response and effect a quarter net material to $XXX.X were strengthening well second an Europe price in dollar.

margin quarter margin second million of its XX.X% XX.X% prior basis gross was as year compared price five under ago points average which our year as considering accounting increases. drivers Our performance key to the $X.X to by consolidated I'd reduced the well costs initiatives. to on our some sales, expectations margin as period. adjustments, will our Brian up profit growth the purchase margin $XX.X our the ETANCO, million XXX on discussion declined our and gross began elaborate with quarter raw of our of catch net in remainder in year. our ETANCO contributed second million as to material of gross the Compared for $XX.X on key like the turn to gross just now of before expected our addition of the

As sales has OEM, markets; previously This commercial, end national narrowed various new wins enabled earlier customer year, within discussed five growth initiatives. we our residential, to on and specifically our retail, more realigned five use each focus of concentrate and this technology. project team building

supply some will specialty We In the winds second were technology crates solutions, of of the our products, with shipping value structural wood space. important for mass XXXX. key couple the in within the recently to utilized timber of a custom Since and wood happened awarded high integrity be project alignment construction is value highly Here's is examples direct the for crates fasteners proposition. crates. the accomplish the quarter base our opportunity OEM other what of the including complete we of just and market, in products

being as construct specified training to structures from Our carpenters. solutions now course serve to are timber coast-to-coast for union mock-up mass

state-of-the-art We're also our construction our through showcase designs. structural timber expand to to for are U.S. to solutions office the new to we mass were company. a our based space. in utilized engineers being were commercial large the addition, home the our continuing capabilities testing example, for the suitable Test In in our of able offering to their Similar demonstrate products Lab unique prior that

are solutions being the for as construction graduate well housing of concrete Florida. in new hotel Utah, Our in as in used

and upcoming Simpson to teams construction also venue Games related in sell Paris. Olympic the into under together ETANCO currently to products work a Our

the Within displays and Lowe's. the pergola national retail it market, made Depot we support in DIY access. to as outdoor equipped from several our initiative stores now strides and the have R&R with pertains both Home with We

point inventory R&R DIY and addition, to pleased sale been continue see customers activity, our top based In on add XX, on we've to of our products.

founder, can initiatives, Simpson's to relative confident in further These progress above-market we and make housing growth we Barclay beyond. growth select continue As our we and principles throughout continue continues turn are emulate doing to our obsession each specifically, us starts examples our XXXX more focus on key company our Bart's to and users. to day. allocation. It's nine that I'll and customers on fiscal of principles now live the capital through legacy business, every and these

will on and stockholders through both continue organic returning shares. growth opportunistic focus and of to Our stream quarterly our value repurchases selective our priorities dividends to our

Europe. acquisition Key updated facility the reinvestment be finance ETANCO. target Historically, as repayment free areas capital company in expansion to and we XX%. capabilities conjunction flow debt as engineering, meet of announced, the focus of return with marketing, of areas the recently we the supporting on the of sales, the into of to integration reviewing across versus targets, assistance XXXX, been our we XX% with incurred business, well in As personnel testing ETANCO our footprint recognized our we U.S. cash as from in to another Throughout for globally operations growth we'll have third-party

investments meet expansions reduce model in workplace, our will will As partner a we to we expansions Investments these production finished reliance that this well as the superior and ensure of differentiators customer result, our we in and customer service, produce have will on have These continue of and to capacity goods identified already on reinforce elaborate service. year products, certain U.S. expenditure our levels ample in needs. overall our and as continue efficiencies capital locally continue business facility shortly. to into Brian component choice XXXX. ensure and as remain our safety the started outsourced products to forecast core the improve

integration operate growth through we the M&A paramount, provide opportunities remains would are especially better we in evaluating products, us initiatives. markets ETANCO potential enable always the while which to our the complementary that areas key of complete support Lastly, in solutions for that

product Before I conclude, by impact we need business will the than I of the to will wanted time, uncertainty. run $X energy the shipments Russia to less to operations. in we our secure layer energy to and Europe and in to adds sales current was estimate that The all this in region, point continue Belarus all At access we we situation halting revenue be reiterate suspended be able million. believe to a activity

those this the as been summary, we're progress made have thoughts we very well the integrating Our significant with affected advancing initiatives. all of remain as that key ETANCO by war. with growth our pleased In

is strong execution brand believe interest to factors given years. inflation and that rapidly financial environment, the diversification XX reputation positioned the while and to results, Simpson our cultivated produced rates, at Our macroeconomic We excellent industry uniquely impact perform large. rising continue we've strong operational past changing over other including the strategy

employees XXXX. working our March to dedication your for to Thank day. company outlined and service Day to we levels are our in achieve We every Investor will superior our optimistic of safely ambitions importantly of most as by and Analyst customer you commitment all XXXX

financial turn Now, who call our Brian, quarter greater our second and I'd in like to outlook will XXXX over detail. to the discuss results

afternoon, discuss good with financial to today. and I'm Karen second you, results Thank you quarter everyone. pleased our

I'd to in unless like And comparisons my the second discussed all that will be remarks year-over-year stated, otherwise prepared measures quarter today quarter of second XXXX. comparisons all begin, I refer Before mention versus XXXX. financial the of to

second our Now, to quarter results. turning

increased our $XXX.X million. consolidated highlighted, Karen As net XX.X% sales to

offset due increased Within America million, segment, In and partly ETANCO, offset volumes XXX.X% North to higher to a which implemented net million, offset on material lesser which foreign costs currency costs, $XXX.X abroad. in sales, sales $XX.X to net translations. increases, contributed primarily Europe, sales intended was by raw increased to $XXX.X flat extent from to to in relatively net XX.X% price the XXXX increases we rising the million price primarily material

Europe material higher increased gross at our XX% million shared States compared sales we prior margin a basis, as by Wood gross $XXX.X construction weakening in percentage remain XX.X% sales earlier, to consistent sales, negatively quarter. compared the XX% at XXXX. XX.X%, were resulted increases down products segment America were enacted against products foreign primarily affected currencies total sales. offset due Karen Europe's related by to and dollar. of to $X.X profit which consistent Europe's to remain As to to were currency which by total On gross of also partially the in year without million, construction translation of XX% taco a compared price United North in the volumes costs XX% margin a to Consolidated decreased a net of XX.X%. product concrete throughout

wood million margins for perspective, on compared which Europe gross $XX.X to This of XX.X% gross a with quarter, of in year XX.X% product non-cash was the accounting quarter. XXXX, to value accounting, why XX.X% of products result accounting. margin was Our our acquired based is year million on is the included effectively $XX resulting is gross XX%. more subject third our in the purchase as purchase The from for in to $XX.X from concrete amount prior adjustment non-recurring nominal From adjustment for Europe in a primary goods the and expected profit in XX.X% compared million purchase preliminary ETANCO, adjustments and as the second which to factor products total declined a to in change. totaled balance fair a is XX.X% quarter dollars charge million in net finished quarter $X.X of prior only

non-cash operating included approximately recurring quarter turning amortization expenses $XX.X ETANCO increase or expenses. attributable expense. and million were XX.X%. $X.X Now, $XX.X expenses our and million to reflect second $XXX.X operating of million, costs of to Operating an Total million,

fair estimated to also purchase assets, subject of On as year. over the we change is of the our value accounting course acquired the which intangible finalize

improvement an XX.X%. As percentage basis XX.X%, points compared approximately to of total were XXX a net sales, expenses operating of

expenses. million due million, On The ETANCO Selling second personnel to and to and basis, XX.X% related development quarter as expenses engineering $XX.X ETANCO. increased to as XX.X% increased primarily research $XX.X to well for segment amortization expenses due XX.X%. and a in the professional expenses company and increased and selling due up up were General and and fees to personal North $XX.X ETANCO approximately including in they Europe, America to administrative XXX%. overall. million, were primarily XX.X% expenses travel

by accounting from for million result, X.X% gross as of XX.X% to ETANCO. for expenses, Please -- $X.X expenses, and from primarily totaled specific $X.X the operations assets, and profit, integration is on $XX.X $XXX.X including consolidated finished note intangible million, million profit, to million expense accounting costs operations finalize due adjustment higher million in acquisitions, operating personnel loss acquired was are that integration an which our $X.X income for value higher As $X.X operations increase operating due additional an ETANCO's and partly In from $X.X to million, change operating our In goods, offset $XXX.X purchase higher XX.X% a results travel adjustments income to subject costs. by acquired decreased fair North for million. from partially amortization Europe, and spent XXXX. million consolidated million entertainment purchase income and $XXX.X on $X.X higher increased of gross America, and from a costs net total of we during to a preliminary operations of for included million the ETANCO. offset of

into operations, On points was XXXX. expect the of approximately operating European additional a consolidated we basis, XX.X%. half our to continue costs basis our XXX to integrate of we margin decrease over As incur income a XX.X%, from second ETANCO

margin our discuss shortly. updated outlook operating the fiscal we'll remainder of Now, for XXXX

million Accordingly, Our per million diluted XX.X% to to fully rate $XX.X effective decreased income or from $X.XX share. $X.XX diluted tax totaled share slightly compared per XX.X%. $XX.X fully or net

sheet balance our flow. Now, cash turning and to

remained at and June equivalents sheet million. cash XXXX, balance cash totaled Our healthy, $XXX.X XXth,

XXXX, just under for credit. XXth, available million, debt As million $XXX on our June was of total line $XXX and remain borrowing of primary

ETANCO. June was was which balance at position of to XXth million, million at primarily increase attributable XXXX, inventory our an XX, $XXX.X March compared $XX.X Our to

managing ensure practices inventory on delivery always, As continue time purchases we diligent of in as purchasing remain we our levels standards. careful will and through service strong to customer

dedicated of dividends our remain and both the we to providing highlighted, repurchases, as Karen focusing repaying business the as well As to incurred on acquisition the we our through finance returns of debt growth ETANCO. to strong capital share supporting stockholders while

expenditures acquisition million capital and the the invested second we quarter, $XXX.X $XX.X ETANCO. During for paid of million for

We paid in also million our to stockholders during the $XX.X dividends quarter.

for price approximately we of XXX,XXX $XX.XX of per repurchased a $XX Additionally, at total average shares of our nearly stock common million. share an

million $XXX which remains XXXX, available our authorization, million through XXth, effect share we June of As end repurchase had approximately XXXX. the in $XX.X under of

XX% be compared our for we year We results of ETANCO. full are slightly to of Next, our XX, the the revising raw ending expect regarding XXth, range now Based I'd guidance results, December of to conditions for actual today, estimate quarters trends XXXX. operating expenses. as of margin operating like July latest projected our XX%. previous XX% which in to included expectations trends, business to our discuss input includes and XXXX acquisition ETANCO, and our demand and financial the on costs, outlook, which of two XX%, material to

better acquisition. attributable costs costs versus visibility guidance with in for results XXXX million approximately topline be along XXXX revised impact the Further, to on expected in approximately cumulative from to estimate million throughout integration implemented XXXX. material $XXX is from the and $XX in million we product transaction we increases ETANCO price to $XX will Our continue the

sold as a increase goods through of on we XXXX. expect our as cost will of inventory We our of the percentage hand net total balance sales also continue through to work

benefit which substantially rate and of rates. all approximately currency of interest be borrowings credit from changes including Next, in $XX.X the swaps, and million the $XXX million, from facility volatility cross $XXX interest outstanding initial interest we expense mitigating million the term loans, on had expect revolving to

XXXX to facility of federal no expect as We are $XX our are highlighted both our $XX assuming range now the as to changes due $XX approximately annual primarily which And million will includes income million and in well estimate $XX which expenditures law Karen ETANCO, tax reiterating $XX run spend the tax state estimate, we expansions the ETANCO has to effective addition of of XX.X% and capital million, to be rate compared tax earlier. XX.X%, of including of million million, rates enacted. previous to an

a in execute to We results as summary, with ETANCO. In Ohio operational, of expansions, With moving estimated call one the begin now, We specific in XX.X%, are $XX at and continuing basis, forward expenses our distribution quarters. the was our in that, is XXXX. selling manufacturing clarification. I were the evaluating the America do on before the financial turn to -- that, very XXX%, like to facility they and with to I and said we're need of I and spend with the expansion so selling I forward Q&A are of that and in were financial XXXX I'd pleased up ongoing North coming segment estimated Earlier mentioned integration strategic, I to facility, up our operator XX.X% session. million expenses that, million correct to unchanged. Actually, over second $XX against that efforts mentioned quarter look initiatives Europe just up and

to to it like for the I'd Now, operator Q&A. over turn

will we Securities. question a session. is Moore Instructions] with with time, [Operator from Daniel Please be CJS Our your this At first proceed conducting question. question-and-answer

your Brian. and us Thank Give you. you expectations. updated updated growth for and with view about as the half given pricing to overall continue our of fiscal of think XXXX? compared the volume to as housing growth that growth kind XXXX of back remainder implies as what well we growth, above Good overall revenue on exceptional generate North Start afternoon Karen an America, actions really view

Dan the bit. start sure Yes, down housing seen are numbers coming that's a that a I'm great you've and question,

they to starting optimistic we're first come numbers of were builders quarter the so are bit not and see also. those think I quite in that a little as down as

the One in the just is we're residential seeing, of are down, when the housing I start would starts mind but look at multifamily up. numbers, keep starts things what the you is which

would of wood. out of put much content I built to lot a just pretty So, in anything reiterate

portfolio revenue being we choppiness our about just our back when look with more have starts thing residential certainly would look our have at interest revenue starts, had tied XXXX. of housing So, of in more half seen in the starts, rates, the little will are ago, we I other multifamily. of of optimistic less at three we about content as in last XX% those but tied balanced the US XX% mention to certainly much is have would U.S. of balanced been builders housing And sort the years much said would we again, where to we the housing about the seeing definitely it's a than rise

Very $XXX XXXX, trying I pressures? helpful. that more to the think benefit a raw previously rising with that a right of kind benefit? said million Maybe little break continued Has all material still at down in increased level overall that about pricing, bit missionary fiscal is of

still impact incremental $XXX of year versus million last pricing in this No, comfortable we're that approximate with year.

in targets Very at but at you're the synergy elaborate helpful. and shifts integration on little quantify gears, -- timing quantify of obviously, maybe the seeing ETANCO? what's on realizations the is Thanks. or that some Can dependent great, going which terms elaborate a of Maybe of macro, of timing, all switching going with you what or like the ETANCO sounds uncertain. bit is

that of had million listed, those me, about we synergies. $XX synergies and excuse the remember synergies were offensive defensive half were so of half Yes,

push defensive as But the track in economic think we're we XXXX synergies. at those as that out bit. offensive on timing certainly believe the our might far a we seeing So, we end our of for Europe synergies conditions remain

on facility then Got just elaborate expansions. very maybe the it, lastly helpful. the that's And --

for CapEx that's kind said it maybe you the You generate talked and entails, do about all Ohio capacity to once And project, that's done? me. what what be you able expect numbers to through incremental the not that go Thanks, gave again, us to but those of

do our Yes, there allows to manufacturing very optimal also our efficiency it be operations -- in certainly rearrange is facility, for What to additional us an and expanding that from make footprint to perspective. adds warehouse. that

we've as additional as the footage we've just years. -- you we've this And to So, in capacity, add got. the we locations over at in we growth have look a imagine evaluated that additional metrics one square done the is just time, can and other plans facility the over facilities that

on operation to So, overall being again, customers, to produce our that to our to grow adding close product to much able continue warehouse, able serve current more into our customers, we and plans. as efficient there the by makes

you. Thank helpful. Very

is Tim Wojs Our from with Please question. Baird. next Robert with question proceed W. your

I kind two afternoon. within think half Hey, second Good of considerations of of back think XXXX, the of everybody. start year. the to kind half? or, volume North the kind of, in thoughts flattish last modeling seen we've any I Maybe on quarters, just volume around America, the I mean, kind

So, do at volumes of model that's or this point, year would you down kind of onerous the half back at point? have this the too you in us think

little a maybe to down just Flattish bit.

it How decline a your about -- of If at destocking, point? you around more at starts there's the trying if guess have of I of you've Okay. kind levels the risk any destocking stocking? I'm I'm to do start this any guys understand to seen meaningfully? some inventory if you just, customers feel

Yes, lot customers with are day, every concerns have salespeople a and not that's a destocking having of situation, obviously, really their seeing great we inventory. out that we're customers about question. any a our And,

inventory. a brought a key anything increase seeing we standpoint things of big haven't in, other with of seen bit little their those As obviously destocking distributors we're for season. we on our from center But mentioned, standpoint on home they've some selling a from their that

Okay.

counting in kind just I doing in glide I XX% the you're would is you almost operating into Brian, you Or mean, back best they margin of cadence the I then and the XX.X%, perspective, just of to back and of half how like, margins terms Is I margins date, raw caught of it over kind the QX next normalization? And of XX%. the mean, of guess the from cadence? you're year year the mean, material down half, think better see good. when a than from you Okay, year? XX% to guess QX? of kind know, I to in picture

and we for down But a a but second Yes, more function, is year. we the use a better lesser margins QX, to of impact higher volumes, impact gliding overhead of operating would this -- wrap to so general the half QX this part then better year, but seems down. QX term the being through down all QX have the up seems as Simpson not of said, it's course, that Having evaluate a certainly gliding would the the as XXXX, absorption traditional -- well business, absorption, the still of to volumes that than glide in we of year, profile, as year. into margin QX overhead so it interesting we back less it And XXXX margin seeing we current middle an guide that has as just getting yet at absorb part been range, that's but because call the seasonality yet, margins less of look like QX degree.

Okay.

Okay.

it's the impact? kind the kind So, of that might peak for QX of margins, fair peak be kind of normalization

estimates. current on Right, based our

costs? from there integration exactly up the then going so And integration $X what quarter. guess on guidance it took transaction costs, what and I was think is last million the $X good. I you million up Okay, the to by

things formalize are with at we kind consultants capture costs those to any be bulk Well, through work that if the half be of the -- within many would to our time that. that, to part right with any QX, were severance continue the first potentially in one many, teams or synergies year, and plans that looking our would integration of now associated there of -- of tracks like

Is $XX year? away to Okay. $XX Next million that go million

most the part, yes. For

to the or it is and that $XX million, step-up And not? -- inventory inclusive the million $XX of

in of is totally in that up cost -- inventory all -- sale Not. stuff This up line. That that separate. just

as up costs to call integration or the distinct intangible and step various two. elements those from the So, with we out amortization, associated separate tried are the the other inventory,

you. Got

Okay.

what I had. good. Okay, That's

luck time the everybody. and for thanks good half the of So, the on year, back

Thanks Tim.

Tim. Thanks

Our Co. question. Julio is your next Please with Romero with from Sidoti proceed & question

Hey, good afternoon and Karen Brian.

Hi Julio.

Hey Julio.

to my $XX of math, on all So, pricing little -- remaining. I my million kind of a price bit. start wanted by Give you about

can On about topline at you XQ? maybe being of Should impact the talk XQ in topline price? cadence think about anything in how in should versus XQ maybe expect XXXX the all just versus XXXX, -- felt the in we we terms the of

QX of Julio. that all Mostly,

it. Got

the at, I kind transaction then maybe first recall. -- after And Okay. margin op gross XX% pretty it margins look And that's ETANCO, thinking if that. margin at all cost about XX% margins better impressive purchased glance, than op for and margin and adjusting of historical the you that

And you trending progress throughout expectations? this margins see in with the year? do was those your as how line So, we

those we're and closely Generally in obviously, and environment with line, in Europe it's very very monitoring challenging. operating the

their volume much that very but managing story that volume that as that paying things only there. we getting as working -- job not the now about very are closely helping a business and those but are we ridealongs and just their are much very the them. we're now topline and it's that the gross doing pricing, sales front very, out management with center us. They Now, really their close team, -- really team, with attention learning we're can do and But integration good margins,

like remarks beyond prepared just then be understood. come more on to might there side, And the your investment the Okay, sounded Ohio expansion.

as expansion? weigh Just you objectives in what additional the are key and play considerations

deliver more and footprint that's the Ohio. and again, to, with one to at facilities some R&D make at testing focus a with where are is our running our value facilities initiatives, make growth we that our can initiatives, continued we've we point them more for tipping the that be fixed through point, us. like efficient, certain sure How of a We that volumes is want we got our just expand the to that to customers support sure service we propositions

how So, product do trying point, focus sure share always into manufacturing, our on to we supporting we our highlight customers able manufacture with a we areas that. but and really safety, and our -- doing really efficiency, customers, add looking other that lot this operations our extent the we're it's at to we're to to Don't translate customer value be details we're to that continue making service. warehousing trying and have more where to ultimately, or other can good really to to those to do closer can't of --

it. Got

Now, color that's the there. taking good questions. Thanks for

You're welcome.

Julio. Thanks

question is Davidson. Kurt question. proceed from next with your with D.A. Our Yinger Please

Great. afternoon, Thank good you everyone. and

Hey Kurt.

back on of, last that million the France seeing Italy of year. that's mean, construction of than sales Do what you in maybe of for how this book and on based ETANCO, revenue weaker the quarter, you business? just outlook about terms little can mean, that? you're I still bit and Yes, business? think about just think you're about in you feeling activity there achievable kind -- talked maybe Or $XXX I I the just hey, talk commercial, a

our together Simpson those going of particular products the ETANCO for are team We so we that some to have put Paris I Kurt on with mentioned think in you if -- on those of certainly, area XXXX, the think construction Yes, worked project that in the team about on and the of lot the going projects a Olympics. on. some they Olympics in a

of that's business bit, Europe, estimate are side. in of though, and uncertainty commercial residential starting But team say on because still $XXX the both approximate of the do million on the things I revenue in lot a with the the commercial war, down going a to from ETANCO slow in going on we there. general would the So,

energy course, their headwind -- the as course well. seems think that what in be in of with some of the that uncertainty very Europe. very, on, the there Of But to line focused brings Europe, a are very efficiency, just facades much region we and me, parts with tailwinds excuse and the products the great in Europe, amount to helping in bit of market -- of uncertainty certain from are with a ETANCO like up the much of some the put new cladding of

that I finish of of, this and the right, that quarter? around softness that a to on business, traditional how And start all? at may dynamic thoughts again, Or guess, have bit, from side. the distribution talked any early sense. Was about some makes home pretty center here All expectations the consistent QX, if kind outperforming Okay. you quarter in shifted

things destocking. let in year. up of to just bit we're so a the are me QX some volumes doing we -- XXXX, center reminder last saw of or July, little certainly compared But is July-August particular, about talked what QX home about seeing to inventory in a One

being it be that comp, are that bit perspective, So, within placed. that part orders a may of business, particular being to of lot inventories to of lumpiness easier from goes the when so are and brought just a in when a speak, it those

So, off the it be comp last but comparable is would pretty soft a of favorable now, from year.

Okay.

general. In

sales taken of I kind I America last I one, guess, guys reminder. Yes. reconfirmed additional in of then business actions a you but on you about hear And And No, from it, know just this pricing, that's price you year. North all? didn't talk my $XXX have the at million good non-connector

done of of connectors, that really or pricing whether market. of of fasteners, on line a some North Europe, our products, some but the little of the anchors, in products. be mainly pricing of We've specialty North they've more faster In done our America, on in and fasteners America, bit some breadth

and all luck Okay. color Well, QX. appreciate good in the here

Kurt. Thanks

does of Thank the time. session. end the your and disconnect participation. today's question-and-answer you This may your conclude you reached this at for We have lines conference