PPG - Earnings call transcript Q1 2019

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Operator

Good afternoon, and welcome to the PPG Industries First Quarter 2019 Earnings Conference Call. My name is Andrea, and I will be your conference specialist today. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. to Investor conference Relations. like Bruno, to now of Director would turn over the John I Please ahead. go

John Bruno

Thank you, We Andrea, to call. this interest is and PPG our good afternoon, Bruno, in financial of everyone. first Director quarter Investor results welcome Relations. and appreciate XXXX continued John your you Once conference again,

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

XX, information will and are Our will our XXXX. support on comments April the site on the have I commentary The financial comments also everyone detail released the shortly. the additional webcast relate to opening accompanying for we that slides make of on website, ppg.com. remind Thursday, call to this provide Michael available slides Investor posted Center presentation and

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

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

CEO, introduce PPG Chairman Now McGarry. Michael let me and

Michael McGarry

financial afternoon, reported everyone. John, results. Today, you, XXXX we Thank quarter and first good

that foreign translation than adjusted For the EPS factors a sales the prior continuing headwinds. and $X.XX. significant constant were currency industrial operations and net modestly were our adjusted approximately per currency basis, Two our year. were primary higher our lower first global impacted adjusted production our share billion, diluted earnings from EPS $X.X quarter, On was

stages delivered our in progress This benefited time and recovery target and early one ahead and from strong the of in as management realization year-over-year during the margins We’re the continued of we’ve and selling operating margin first two quarter years. internal achievement quarter. for a is higher price cost further

and sales Also architectural DIY For by in automotive impacted Sales most the related flat net half constant and Asia. the were production, market year in industrial the weaker sales with quarter, assortment first in prior were prior volume our currency our our evident down geographically about global volumes changes U.S. decline year. in OEM X% customer business. to

this We will the second assortment change after anniversary quarter.

higher X.X% marking were prices pricing. quarter higher the of sequential eighth selling Our consecutive

quarter business amount prioritize recovery. In this as margin on of addition, passed modest we we

negatively sales significant net million. currency by more were or Finally, translation $XXX unfavorable of about impacted than X%

currency unfavorable million and expect the translation the $XXX to to second We million. continue of $XXX be quarter range in into

double-digit percentage flat see coatings had segment, of we volume industry led demand industry refinish automotive fourth first Looking sales quarter, business performance for business, in our in the regions. continue at reporting consecutive regions. trends above aerospace In all in growth developed to by coatings its major performance our quarter some

the in in U.S. As an quarter. claims example automotive X% down collision the were

a in percentage net increased sales consecutive volumes their to we mid-single expanding of the the for architectural quarter. coatings beginning second that margins. sales by above integration of began refinish prices a are supported of business EMEA sales combination SEM the quarter, and commercial higher the great positive growth volumes scope. that pleased segment which selling delivering digit start the And and acquisition, We Our is geographic off were process

sub higher. major were all regions Importantly,

on margins business this past, high growth. add incremental we do volumes any increased additional As we the the to need in costs discussed this support as and to not delivered region

Our in Paint the Comex this sales timing leading in America driven are weeks business in PPG Latin which of holiday. lower quarter. by were Easter in year-over-year historically slightly the will Mexican occur higher second sales up the the volumes holiday to promotion,

expect the Comex quarter. stronger business second in We the sales in volumes PPG

assortment consistent made growth digit sales DIY each in build aggregate, volumes region of for by low-single Asia-Pacific demand price sales of builds and did increases, XX selling price to implementing the the the with Automotive million world. good segments, half volume net Americas reporting lower marine major positive in by volumes to was in in sales by a During U.S. about excellent quarter. sequentially the a progress deliver have our by automotive $XX coatings coating other growth major sales growth market year quarter, of the rates. digit America. automotive XX% opened China quarter. the In In higher for architectural we most sales and lower stemming are the The realizing Mexico regions up industry of the percentage company-owned were our activity percentage and new adversely at global the or and prior impacted in in DIY lower Central more most Protective quarter. of stores high-single industrial our soft OEM year-over-year Sales of industrial volumes changes. coatings world. business than customers key Europe. significantly due were customer Canada impacted We and in soft from our Same-store continue two sales for decreased

industrial coil finishes global coatings Soft notably activity also impacted the general our industrial general segment. production business, most and in

comparison packaging of year year, in an our $X.XX coatings From prior customer per by our INNOVEL prior interior can strong our the perspective, diluted earnings quarter coatings below products. driven in modestly first growth adoption was share and above decreased market quarter. to expected, the earnings adjusted to sales slightly As volumes

negatively were unfavorable foreign $XX by currency earnings impacted Our about of million translation.

share per were adjusted modestly higher I prior this earnings earlier, diluted impact, excluding than year. As mentioned our

inflation, carry forward all inflation. nearly which raw XXXX. we inflation continue During This the material impacted from of quarter consecutive our quarter, XXth to was be was by material raw

and Recent in our both China next crude the from in inflation costs increases oil In operating Selling could comparable addition, disruptions input unfavorably affect the Texas logistics in price we prices business some and quarter. our of encourage with increases contributions segments. and supply quarter. in X.X% wage reporting

In addition, we savings. our more restructuring actions made delivering million savings business than cost our pacing excellent with the progress in on quarter, targeted $XX during

quarter. is was rate discrete non-recurring XXXX. higher items first in tax The favorable quarter, in the increase to effective first Our the prior first than quarter recognizing which the XX% in rate XX% mostly relates about the of year

XXXX rate to XX% tax between We’re XX%. still year anticipating a full

to the by look likely to housing automotive developments anticipate stable in U.S. spark second in around XXXX. market in the compared industrial modest uneven could return favorably and subdued year half Specific trade higher in expect improvement growth interest activity quarter. economic second to we will drive second believe production ahead, second to in we Positive global the automotive of country the the As rates to the region quarter quarter demand is our to U.S. and XXXX regional be impact activity that more and the and modest sales. OEM expected in as help also we remain dispute Global second is and end of industrial quarter. decline progresses. market general We business,

builds expect For to be we the U.S. automotive flat. industry second quarter,

million, to this rates business. about be higher assortment sales seasonal Our This with the U.S. for we in Growth volumes final in the Asia unfavorable architectural will business first Comex to the down volumes the Latin In $XX will change. PPG demands from America, customer improvement to be to compared due remain soft quarter impact. modest quarter. normal sales are expected face some intend

is second stronger of recently to the comparisons automotive implemented year We year. based clear and Overall OEM to the catalyst. economic with the in expect no in our half growth in to expected volumes sales weak stimulus, the remain prior easier business be Europe on

We consumer volumes production Brexit as second year decreases in the industry will uncertainties business in levels OEM automotive similar higher quarter. demand. to impact confidence expected and and to probably first The and than lead in are expect the could to be builds overall of quarter delay to of prior continue sales lower our to continue

coatings second sales regional quarter. expect favorable We the architectural produce to in our volumes business

to continue control business to that will all elements remain economic within our we of regardless manage conditions. of competitive We ensure our

we In quarter. addition, on about the $XX to execution and of of expect second million be additional carry incremental savings our research programs and the will in realized

full that to the $X.XX implement EPS to in earnings for both will to macro foreign the X% reduction $X.XX release, mentioned guidance impact sales actions cost X% EPS remain monitor to in We XXXX. delivering $X.XX, This if foreign growth share further from As specific year announced second on XX% to continue provide X% economic prepared growth, closely quarter unfavorable necessary. and to environment of of an translation. includes is the XXXX guidance be press fully $X.XX targets which we adjusted of currency translation committed to January per to of and excluding we currency we

the net with cash In is to flow first consistent cash pattern quarter second for quarter. cash. quarter, of cash the in in prepare Our on was generation operations using the our sales continues. first use focus from seasonal a of our This higher activity normal

for conversion U.S. all anticipation In This in around addition, automotive is converting two our ERP previous businesses the due successfully our second over and years. a with this preparation year inventories our of last business. quarter U.S. of major Canadian all businesses build the coatings Brexit U.S. we ERP conversion the intentionally to conversion past and refinish

recent working added the SEM addition, and our to acquisitions In Whitford capital.

three completed preference a business. acquisitions capital goal earnings annualized completed quarter XXXX. our Our the acquisitions working acquisition The of products as announced the grow in sales cash pipeline the acquisition. acquisition of range Whitford recently remains our to and and including just percentage remains with of broader million first to the be in recently our add about and revenue completion and announced Hemmelrath provided full reduced continue technology $XXX a active. and for year Accretive deployed to to compared SEM, we’ll We

have invest investments the in to about X% continue more expenditure levels We financial at and continue million of to quarter acquisitions, similar significant XXXX first short-term we we continue ended have sales we than of with addition, we to expected and In invest business. development Capital and organically in flexibility. to our $XXX and be cash in done research is historically. as

paint, and in to year succeed, and our focused consistent pressing world grow materials thank recognize interest Finally, our our for value safely, outstanding deliver delivered the PPG commitment in to challenges on stated our leading for us position customers, most provide shareholders. value power our appreciate XXXth each employees steadfast employees to Andrea, growth like and day. would around operate our as of businesses the delivering help objectives and world’s for solutions again, create we concludes and remarks. company. our of while innovative as meeting this PPG specialty strengthening morning, these remained XX,XXX effectively now annual and our prepared business, to PPG, your I open customers and the We who the please every coatings, you line are in people and This questions? I’d Once sustainably,

Operator

Kevin session. Please Instructions] begin will We the Our Partners. go [Operator Research of McCarthy question now first from question-and-answer ahead. will Vertical come

Kevin McCarthy

Yes, I China better are upon you was half expect you year. the for and release, could in your wondering if morning. good a expand cautiously indicated Michael. optimistic of outlook back that you the

color see of trade stimulus Just to predicated on would wondering, that be there deal is how helpful. any starting a are or related benefits, much you

Michael McGarry

quarter. XXth from VAT XX% to coatings to Kevin, know as XX% the was cars VAT from Conference X%. for first took The you People’s was place in dropped for National dropped XX%.

Social insurance were contributions reduced.

would the I I but is stimulus know, total influence So, there’s what marketplace a that to a say, the better there’s word, in of lead don’t of right lot performance. lot

time. know, numbers do we automotive you see real in As

half we’re fair be like so XX of XX a do the confidence year have I to going amount days. we said than and insight second And XX days is we first the have the days, optimistic of better into, that half previously,

confidence. high have We

So we’re early that. the of signs starting to see

Kevin McCarthy

in what side, the whether of was subjects the architectural is terms you in on Okay, indicators first of outlook the and for what And that’s U.S. could your quarter. coatings touch helpful. U.S. macro in demand impact at your for state then, seeing And perhaps you’re architectural all an weather

Michael McGarry

somewhere you know, wettest the tell as be January we the teams, February world to But weather on to have and else we always good get okay. NOAA, able operating as always have because our function in around. that. and a put different Well, reported take you

a have our So We to we’re to not going customers that. good do point backlog. see

and mix is stores. forward. have think market know, this we favorable comps a some do going far a overall, good different anticipating very You as our we maybe as of and slightly we’re still our competitors, But

Kevin McCarthy

Thanks very much.

Operator

question go Our from comes Michael of Please KeyBanc. next ahead. Sison

Michael Sison

guys, Hey nice quarter.

Michael McGarry

Mike. Thanks,

Michael Sison

second the your In half terms ex-currency. you’ve year, the of sales for of maintaining talked growth about outlook

walk of half you can to the that growth by full businesses, us see sub going to So what you’re of the maybe year hit through second number? sort some of type in

Michael McGarry

if start with Mike, pieces, let’s look the various Well, you at aerospace.

We’re growth in are very see very, trends very that good The going to nice. to continue business. underlying

So digits. whether from saw it’s a very to it, double first going frame the the comping third quarter against back the you comp be half bit a build it’s are in rates, is lighter military, numbers solid we quarter, and fourth PMC, had however to quarter the we’re so year. whether a up year, of you going to little easier. and Refinish, aerospace have the want as last

see recovery that that bouncing in to the in segment. strong Marine bottom, protective a continue We sales segment. off

would this prior that conclusion Europe. of in one have you to raise of were price We in We Europe. I a So try significantly. calls. it lot to is lead We kind in to one probably you first most the that. confidence architectural encouraging raised we the tell And

So last prices to up. giving up share year, were preferentially we get

that We competitors our the quarter. just as We a team been are doing had Comex that quarter to has first in Mexico, Central raising to business quarter anticipate well job the of phenomenal very line us. half trend in is up. good been It’s our ours. Now second back a flowing and continuing price America. They’re historically year. that the as the back

So you there. I that’s that, would we’re tell price – getting

them, since Ever products wildcard. range. stable, owned solid brought up. the Europe trade positive. a is of relatively little there. a a ticking OEM things that these of market. XX.X, That’s been higher But we’ve marginally. value-added we kind and see XX.X, customers all eventually, diesel having as going U.S. behind have Automotive Comex, somewhere We We’re they’re in bit a down to in it’s

against fourth a So we’ll to you we I to year. Asia, very better what comps similar when compare anticipate in said soft have And second about of the half and the quarter. then earlier, think third

be industrial, same. that having will little see a We the impact. the So better. General stimulus more positive more

to us that lot this things a we So I think would of there’s point confidence. gives

Michael Sison

decline in on just the earnings then, And Great. XQ follow-up is EPS a larger quick first flattish than year-over-year outlook. quarter. basically The in

less. So it on they some XQ headwinds more of are maybe the in there. daunting should your like seems than were just curious in be Because thoughts it But XQ?

Vince Morales

is this Mike, Vince.

that we but before XXXX, we with in customer full we Just put last that was that a was change of talked customer about support actually items March that to forward. pay couple took year most costs QX, announced in assortment the a of earlier, out to Once in X. announced QX. One, got key we Michael sale QX, the take had or would

support a So they full costs. took allotment without the

obviously in seasonal typically erosion strong until So a last more automotive auto didn’t see the bit quarter. QX, We higher we XXXX. have did year a market market penal a is that QX QX. in is assortment in

So finally on line. you bigger to line, our in last adjustments year, of impact incentive QX at to our in corporate compensation we look QX. if started And our make corporate

and will that year the a think last be we in release range this million in mid-XXs corporate QX $XX was I our projection – line in of the that double out gave year. almost

of QX. factors little put this different primary three those So bit a that the than

Michael Sison

you. Thank great. Okay,

Operator

Please Panjabi of question comes ahead. W. next Ghansham Baird. go Robert Our from

Ghansham Panjabi

Good you. Thank afternoon, everyone.

Vince Morales

afternoon. Good

Ghansham Panjabi

I called market and know the benefited pre-buy that off in you in weakness Europe, first Michael region touched auto prepared refinish overall you would in in on to characterize on your of specific XQ. guess out you Europe some auto How comments. I the conditions refinish?

Michael McGarry

still But not able a is U.S. The less down there more X% have market over slightly slightly or over overall, different the a price that’s raise totals. softer, over positive. and successfully we’ve X%, we’re much shops to there, there. than Prices, collisions so that the the been gaining you

any different anywhere trends do I see else. Europe I than the So don’t in

quarter about timing But, because second sequentially, price obviously be Now, the I’m of concerned Europe refinish at that sales refinish increase. better first for the all volumes. of than quarter not will

Ghansham Panjabi

terms with quarters last architectural have dynamics expect to grow there? and in you Michael, Okay. to sticking smaller some taking macro just the of like that that market said, They regained European a in on market been a reasonable And EMEA, is then basis. what quarters pricing just Europe are you and I you from know XXXX itself couple for But what perspective. the positive. and sounds with relative reversion Brexit, mentioned in do the of think just context

Michael McGarry

a But sign would Well, most kind is of the perspective with UK in let’s low little a Brexit zero and to of we share a going some surprise think call we flowing which is well. They’ve view especially good very surprisingly, probably for much same to to the us. a us. doing market. Europe that, expectations, do think to it thought that’s They’re market excited X%. be we grow a our us is it we that strong outperformed still Eastern I see a number Ireland. that But as is good numbers continue the bit of market, be have always I Europe, and fact when And That’s market. nicely slower growth to countries, having it’s Eastern a back we’re about we what

Ghansham Panjabi

so you Thank much. Perfect.

Operator

UBS. comes go Roberts of John from question ahead. next Our Please

John Roberts

Thanks.

done portfolio the early review June Investor you and to you short of time until question by you’ll raw end the do a the on the I going it’s a or First quarter? have take your in then consultants think outside for have think in one Day Do materials.

Michael McGarry

John, the the something we’re of looking quarter. have to end by

John Roberts

so that Okay. is in terminals we And more oil something customers Texas kind to of look is the raw like oil solvents or the disruption tank price. volatility a think potential then the follow then, is your in in lot change indicator how in of slowly, prices? of they materials fire it And oil often related much farm some shipping do at leading raw Some material about occurred And quarter. the a didn’t quickly, else? the probably

price and more up? coming quarter So, you I had the tailwind you early know the on here some might if with oil in don’t pushback maybe have now

Michael McGarry

Texas fire the But the access we to is in that impact does didn’t John buy. Yes, are it products impact anything in terminal. what the that other

So the challenge. that’s been

So we regard that as a quarter one disruption.

far have a have we As say, to we like of like as remember buckets materials. I nine different raw – oil, always

You got raw them half them are of will impact But demand half impacted them materials of one supply our up derivative. solvents. down, of most of other and Oil flat. by and

ethylene weak, So, as view we’re see supplied obviously remains us. long-term that market, will which to – we over is encouraged help ethylene propylene the

So remain that is will on raw single I would be tell materials. low comps projection, on you easier our And half that, digits. the much which raw year the of firm we back still material

John Roberts

Thank you.

Operator

Our next question comes from Please ahead. David Begleiter of Deutsche go Bank.

David Begleiter

you. last see in on prices higher XXXX Michael, expect year? versus just you Thank to Do TiOX. again, raws TiOX

Michael McGarry

that we to we response be our gave quarter year. the talking need David, think about fourth this same is So the TiOX one we don’t in

market overall basket. in You a have minuses nonevent some our pluses it’s and but

would would the describe we that. way that So be

David Begleiter

the Michael. good jeopardizing obviously price on Very just at in all pricing price And Understood. OEM? weak Are on your weak initiatives, volumes. volumes your job OEM, traction auto but

Michael McGarry

of our the aggressive David, ones We same first trying way we’re in the lot saw customers we’re I’m customers, margins. technology. world price, We most this a I hold we with with don’t to lot us accountable price recover to values architecture. And out our were new obviously of and that. getting think the viewing the so. a for our across to provide

of when price get volume if would competitors to number we now then Right one that for are So our we objective. it’s back. are, see aggressive that, to flow our getting as us expect do and important more some as that’s they

Vince Morales

it’s And David Vince.

no year XXXX price. customers I that got XXXX, understand and clearly we our calendar calendar little think to

we’re value them. capture well of in for So arrears to in terms we still delivered what

David Begleiter

Thank you very much.

Operator

comes question Sachs. Goldman of next Our Bob go from Koort Please ahead.

Chris Evans

Good Chris afternoon, on for Evans Bob. guys.

throughout? maybe in a pricing industrial comps specifically this the quarters are improvements, is profitability. loss needed row So coatings quarter the high much year on the pretty of price your XQ there pricing, more printed still How consolidated recover recognizing as And eight depressed. does represent watermark to harder you more for a margins then get

Vince Morales

Chris this of the take second question. your Yes, Vince. I’ll part is

We’re still pricing in on QX.

We’re the but targeted surgical not doing segment and other industrial in pricing still businesses. only in

price. this not on to in to high as starting watermark. definitely would to the consider got certain going alluded this recover need top over balance to to still try And we’re you And or continue year. course price I it some I So We to properly, of stack to businesses or push think fully we’re regions. of recover

John Bruno

is in X% Maybe X%. you quarters, even. this to typically of we up up Chris maybe than question, material the for need are little to half And John. a look if on single get raws XX past digits say, raw We more inflation pricings your and the bit be low – cumulative at cumulative amount

that’s the looking delta So at. we’re

Chris Evans

material margin a pretty a of then And that the best up top Very – you commentary. of while. sort helpful. performance put stacking good And in the quite just on raw year-over-year

of your and lighter the margin the how So as price? does gets to cadence sort continue raw your you basket comps of material in trends push

Michael McGarry

still and is that, said when that orders exists Vince the way margins recognizing Chris get changed. those not all and Well, marching we below answer back levels. the aware compare XXXX that need levels, XXXX to I our we’re at to The I of teams have that gap the would XXXX well are sales that think you

going that hard So to to to continue capture work we’re gap.

up our also us still that Our additional additional and price to customers the but value to it’s get exists to gap provide customers. know

So it’s a win-win.

Chris Evans

Very clear. Thank you.

Vince Morales

Thanks Chris.

Operator

Credit of Our Suisse. Christopher comes go next from Please Parkinson question ahead.

Christopher Parkinson

very Great. much. Thank you

just positively, in which simply all on pleased just you’ve Can sure actions is team whether price asking synchronized you you moving of you. with. I’m is getting a it the comment not trends or were the any initiatives what this community a So forward. Thank successful XQ? your for does while been regional prior obviously for sustainable OEM fighting functionality has just investment basically of pricing So or and appears everything assurances additional on pricing guys that

Vince Morales

Vince. Yes, that fully the Again in extremely year. we forward XX, Chris, the in We in not for us, additional balance carry here it’s the the to businesses. targeted worked diligently past months do that of pricing have auto coming you’re expect but to only for seeing secure XX QX. And again, OEM other we pricing

our again, we’ve to sure is fully. make recover customers to to value our the we we’re emphasis to margins So demonstrating point, our bring. But Michael’s got

Christopher Parkinson

it. that bit Thank and run you. large you socks then just in how of your a size basis M&A? the front, go leverage, also had and potentially share versus location are where forward And mid you on repurchases just capital a see a Got on given here assessing

Michael McGarry

Yes.

busy reassess deploy we’re those pipeline whether share coming right the and our acquisitions pipeline regarding acquisition As we we’re auto, any are decision we and preference value before of for a how make our our determine If keep said out, to portfolio. going work now that whether into active bit those pretty we’ll will for considerable repo. them But it’s us creating in our year, will cash. active vet time considering to remains little doesn’t

Christopher Parkinson

much. very you Thank

Michael McGarry

Thanks, Chris.

Operator

comes next from go Citi. P.J. of Juvekar ahead. question Our Please

P.J. Juvekar

that in feel think into any April morning. I do of last stimulus, now X. momentum could And on Michael, into that stimulus talking think half? a I went Yes. you quarter about are why positive you the on automotive see recovery. more China’s effect companies secondary Hi, second lot mean, Is second half? think you second I do good

Michael McGarry

customers see our P.J., do we how are preplanning.

And we have insight into so that.

XX us item days. So a we Clearly, but I April, row. levels little that’s – XX in remember current monthly production if had, confidence. declines that or Remember, the China’s XX right, that one nine we declines in more see see consecutive that’s monthly a gives

I’m jump this of going So to not front right in out now.

Let’s we actual until numbers see wait turnout. how the

P.J. Juvekar

seems on market. or your is like business growing at better then Okay. And architectural it business, than the store

more here. is why to growth be my Because I independent opening the and stores the guess, So by seem question stores? the store national stores lagging accelerate retail not

ways? your why store So not Thank grow you. own

Vince Morales

some Repeat events. core growing We better and We with definitional was, of our can coatings Other as those the our that. lighter market. Michael than know Yes, folks I don’t include have We we’re mentioned that industrial industrial do in QX. this say differently. industrial our competitors. a difference include segment. business didn’t And it,

would I market. outpacing again, the not say, So we’re

a us, approach. do that. certainly, go multichannel We’ve to Home major done market For and with other We we always merchandisers. well, the with Depot

we’re albeit channel serve growth lower channel, to dealer channel, additions. us possible. doing Our certainly a a cost with a good support and And low network we selective is for our trade as much as

pruning those selective doing channels. in We’re all

P.J. Juvekar

you. Thank

Vince Morales

P.J. Thanks,

Operator

ahead. Frank from go Fermium Research. Please Mitsch comes question next of Our

Le’Veon Bell

Yes. Especially, difficult Hi. in post guidance result. a This for nice afternoon. guys quarter, you had were relative Frank. the macro sitting in issued. first a Bell Michael, environment, Le’Veon Good able the is to you that to in

factors to just I the expectations. those able were be mean, for key outperform PPG to what as I to So curious

Vince Morales

A one, Hi, year, we better differ a hope couple secured is certainly things a Vince. beginning of that this that. bit the had the level than pricing from – that at little we as

of negative management, the currency little seen year, the than And but we issue, still on as at the given better the our also in beginning a economic second aggressive we uncertainty year-over-year. in coming very anticipated The cost we’ve backdrop. were

are that three guidance. from primary our So factors those deviate the favorably

Le’Veon Bell

All right.

relative want the $X.XX, to we just to might for those dial $X.XX, So in in all three factors kidding. of QX

talk better on of savings than XXXX? $XX said heard expect stand think XXXX. or do the should you’d the – you of that, I $XX at actions think about million expectations you out said I XQ, On you think in guys you that cost million least and said side, that that XXXX guys I during around again, have savings cutting restructuring we in in of that I million you underway? sort get where QX. you posted, $XX you or And in $XX million What

John Bruno

John. is This Yes.

We’ve additional is as that our areas We’ll million. other probably business, throughout we So complete us the have and get initiatives. initiatives world one the priority get to restructuring, will million number are are necessarily that to alone. costs $XX the that the close $XX restructuring to throughout identify those not

still very that comfortable with we feel So number.

Le’Veon Bell

Thank you much. so

Operator

Don from comes Susquehanna question next Our of Financial Please go Group. Carson ahead.

Don Carson

A at architectural. of a thank question, you. Yes, couple questions

Home in year-over-year branch the mentioned can What lapse half on of EMEA, obviously have as we the think the your we Depot get us But there? kind you You in of margin, peak, loss volume. then QX. relative so of you year? more business growth new you remind to how about in that can Lowe’s should second XXXX into expect you the business of that we some what you as and terms volume as are incremental load is your where And of

Michael McGarry

Yes.

Vince Lowe’s Depot it’s the in So Don, Home Depot. I’ll second Olympic Home versus second have half. the and lot Obviously, months take let shipping the was Home months only first two of at quarter. started marketplace. and take year, a Depot half we’ll in so Depot. both was May, This at three the We early there Home of confusion

world’s good. So they won’t make some find people continue and looking positive the the be will have the They’re is sure we’re envision because much thing best be to Olympic. to Depot. retailer would speculate with space business. But they and we very partner I around still were comps. I greatest that, a in that’s privileged that very Depots Home relationship how Home I about think But

you maybe to So Vince, tackle… want

Vince Morales

Yes.

whole for Don, the down almost region. in around architectural peak. In XX% the Europe are were where volume terms versus of XXXX We question, your still we

cumulative So recession in have is We’ve comment. the recovery. seen really down, UK signs the we’re Michael volumes. not for seen country as of seen a We us the seen we couple holistic since the been certainly for by have that XXXX. first we’ve still markets this mentioned, under holistically, our but countries, That’s continued differences of has But just a vein. other to XX% the since good past years,

the in prepared incremental coming We to very are of mentioned are remarks. Michael XX%. vicinity XX% These his recording as high somewhere margins, in in

So occur. when that extremely it is volume does to lucrative us

Don Carson

Okay. Thank you.

Operator

Markets. from Please comes Viswanathan Arun question of next ahead. go Capital RBC Our

Arun Viswanathan

guys. Hi,

Sorry about that. Good afternoon.

you for margin. question on the quick a Just guys

than So progress and as slightly your you expectations? And better as and FX, three of through that out QX the for How you potentially you cost. were us versus them thought. had little bit kind Could better obviously, things three those a we would bucket price own year? how what far characterize on mentioned

Michael McGarry

the order think, where book QX we every very in the business, order terms I – taking our choppy was macro. something region, necessary by management, based day, of the were business book. Well, actions, by region cost on we’re watching Arun,

had we just currency. a our the we of back, guys have the traditional the minimize that. took businesses we’ll We we and some perspective, I’ll guys we anticipated only We thing would cost. several QX, is immediate opine price earlier our those cost anticipated. So achieved what don’t on the targeting. get just the but We I in guidance. pricing did little think see make that to level swift more thought were what experts let was earlier respect come volume are drag on a From let to than We pricing than currency, guys on predict you any you action markets. If of – a little you a I’ll structure. With currency into of we paints. we

Arun Viswanathan

your like thanks. If far in as it you seen discussions a XXXX because on XXXX by margin Okay, as a as I that could assume to within actually if that industrial, they the get where percent kind two. to as Thanks. year of recovery, period, deterioration targets I to last back want over And it to fair something mean, happen follow-up, that margins. and you to to back guys recovered they like Is XXX went around of or we’ve basis looks the points couple suffered years. have

Michael McGarry

XXXX just XXXX world speaking generically as from marker. a happened There’s where lot we’re Yes, targeting to in a XXXX. the

straight but a as XXXX, point we’re margin be So not using where linear going the to marker in a our from comparison, perspective. it’s time

as parity margins we’re get our targeting by We year. there the then in do get in you We to back the improve the were open QX. on work of to were to of glad half And year-over-year out. have the We pointed to year. margin middle

Arun Viswanathan

trend? you would environment? point, growth in that even you incremental could get continue full potentially of that volume on see continue a lastly or Or sluggish just need with to parity And volume to margin to back recovery kind

Vince Morales

side. in sides to Well, favor there’s That a supply/demand makes would In the material our two volume. that nascent we environment, raw expect equation. certainly lot We on the welcome to story a volume work easier.

Arun Viswanathan

Thanks.

Vince Morales

you. Thank

Operator

next Steven Please ahead. comes Morgan Our of from Haynes Stanley. go question

Steven Haynes

my just quickly Thanks to I taking guys. Hi, clarify. question. for wanted

XXXX, commenting comment in So you’re second in inflection we should about be we in in was you’re are just an XQ. not of and thinking margins XXXX. as and XQ margin first or recovery for whether on XXXX up quarter talking how will came for XQ that the you half be Can ahead the that

Vince Morales

again. It’s Vince Okay.

Again, the doing the first second earlier. the Just the anticipating margin half a little reiterate, I parity of by so we we’re think year, end quarter. the in of got there

targets. XXX clear, our basis several Let’s be points below we’re still

we have So of of to year. back underway way for lot there still start balance recovery the going our and working we’re this a

Steven Haynes

if then just follow-up a get And quick too. I could

release about categories guys you you So, on little just in? about what passing business the are a Could business. maybe foregoing bit talk you talked some press

Vince Morales

one, another. industrial Well, automotive is clearly is

areas. price those are general, So easy. is China China And we’ve in getting what two and Asia biggest in said is the not

biggest is their thing they need we their line productivity once it’s which in your the you And technology, the happy less miss, and backing it, manufacturing whether when their I us the whatever for of meet do important to we’re if generally have have or come request that it’s is waterborne, their because that help else up once so saying that showing say, better your then the it and a would we it’s price won��t by people they generally pay times purchasing you whether back that if to serviced products they’re up is, need they’re that’s back if plants it account say level. manufacturing higher people then somewhere have, technology, in a lower get and they happy lot come the for power. to by have take business to a, missing You price, and and/or really the at

Steven Haynes

Thank Yes. you.

Operator

Please of ahead. next Fischer question comes Our from go Barclays. Patrick

Mike Leithead

should back XQ on Hey how three maybe to guys. volume customer was on Duffy. volume This impact the much last in changes. is to about for Patrick. half? Leithead about some even volume Mike from volumes you’ve the quarter? we This into we And seem assortment quarters decelerated Hey, talk of could isn’t the you just the then, exclude if have maybe the I in I Can back trending how think quantify hoping guess, you volumes, circling or passed businesses the

Michael McGarry

I’ll So, on. I we passed much how pass on saying think

Plus it against varies bit what region. that quarter, at you’re I fourth in Europe. good and Mexico slight fourth going from I think to the volumes. will stimulus quarter be you third market, tell see we’re see impact a continue us little second in is of some when that We to by good XXXX. U.S. comping anticipating you third still the we quarter, on continuing a and varies market, softer business But business by is recovery a it in environment and and the the a be different to positive. the look But architectural be seeing the

predictions confidence enough give us relatively accurate. level there’s that think going I there our are to good be out things So, that

Vince Morales

I X%, look And you segment. China quarters, is really halo four had we of around businesses growth up you really volume Mike, past the Tier European off, third or coming has auto really auto as the coming by quarters that X, volume producing over general add, the to got until if suppliers. segment been That the effect the off, been think industrial quarter coming mentioned, last X% three Tier in X that year. I particular the erosion, get And everything segment of see affected in macro-driven. that kind with Obviously, industrial

going macro. the So of half back into some of here. And the that’s that we’re again, year all to as we go anniversary

Michael McGarry

we positive quarters a volume And XX to Mike, in coatings business. had that just our in perspective, in of put row industrial

this looking quarter, job – don’t going like at on to not but our still a we’re the I very I’m good teams sales So doing marketplace.

Mike Leithead

helpful. product then new drill the it. strong driving your every region. bit there? in growth hoping if green, other or and maybe you when look solid was growth, little a factors that’s share driving mix aerospace, Got That’s I at about more growth I above-market talk it’s and slide, I And that gains into above-market what’s whether could could or

Michael McGarry

Well, of it’s actually factor everything. a

gain to Our share. continues sealants business

business Our and has And coatings our done gain to programs winning job left phenomenal share. of transparencies continues right. business a certainly, new

those of one every is So positive. a

general commercial You aviation large Commercial But the customer, is our very And share. very biggest be Military general is only is well. aero. very semisoft have well. doing in market, doing who that the would aviation. is winning

also right So affiliated we’re with customer. the

very solid aerospace. some from OEM second have of second makers. to going plane recent a quarter we’re the So factor overall, in the full we most commentary quarter into one guidance year a But our large of record did and

Mike Leithead

Thanks, Great. guys.

Vince Morales

Mike. Thanks,

Operator

go comes Gary from ahead. Our of Longbow. Please next question Shmois

Gary Shmois

thanks. Hi,

have the forward set couple take and there’s inflation that inflation you pace. if now could that on so margins again offset does start Wondering like pricing last over maybe year-over-year any Now you than expected? that of can recovered years is ramp lessons faster to if

Vince Morales

want for question, Yes. I’ll are let I the Michael salespeople make on recovered. sure to margins but phone, our not our answer the

have that. be we’d We So ahead, clear Go for to go. very still room Michael.

Michael McGarry

they on as in of to friends the without speaking one recovery. Valspar, off our And of That the slow team, the were time, there for I X% into be the Cleveland, little I think a tried Valspar And was a that went clearly, early impacted one first going trying up. environment our is grow an immediately to getting last need rate a work So, my We explain they were of At focused block. going clearly where they are were that peers, Netherlands. you events in prices the time, challenge. two initial to materials doesn’t were to in raw the saying buy friends volume. mode up, that

that is at competitive the the point. challenge So environment

were and a off couple than a got dime the quickly us moving clearly, of others. So

everybody they’re on margins of their at and the margin. but a getting to everybody, trying looking recover is from not pressure Now, most and lot shareholders

to one we and think it the that’s is earlier. little learned should maybe And we stick other to some walked a bit I learned. have need lesson lesson from So maybe away volume

the And maybe that’s learned. lesson so

Gary Shmois

on? of color. the for $XX $XX million million, a the cost from just million Or going million million, that $XX going question to A $XX Thanks I there part something $XX not savings think else program? down is is on, follow-up to

John Bruno

seasonal our trend. that’s normal Gary,

at reasons level, Our are cost are corporate historically but fourth second then through the similar. first the higher and different lower normally quarter in a some quarter for

Gary Shmois

you. helpful. That’s Thank

Vince Morales

Thank you.

Operator

next Zekauskas of JPMorgan. ahead. comes from Our Jeff go Please question

Jeff Zekauskas

Nippon much. property just in you want you have Paint seems very paid? Dulux Australia. that Or was pay much property didn’t agreed to to Was that as that buy Thanks and to a as not interested you interested at were that a in all? they

Michael McGarry

always looking we’re and shareholders. Jeff, concerned. in this And everything. own impact specialty then But space would were always how we be aren’t on time, we their something pay every about every interested. company products is decisions doesn’t is their right the will that does to people everybody I at tell Michael. if tell you that What we get always what makes is price have, winning, paint what just in we is the that coatings, same the mean But and acquisition we don’t at interested that because

exact And people acquisition. have the would answers say different different for I so same

try So for active, that all we look try right comfortable we’re at we I will very But are. be everything. where tell we you is to now, to PPG,

Vince Morales

Australia to business have just we course, a architectural there. but I I business good other of think growing The and know thought thought, very you thing in this a add

number and on we are we’re continent. the on two So continent the

Jeff Zekauskas

is markets? material changes price United States left operating seems price versus oil has the in in your raw really about you what your and your the are in that, the Can markets. talk propylene changes you different but experience quarter the cash weak very in it that raw offshore flow a it material price pretty U.S. offshore in was the the Okay. having in And

in markets inflation offshore seeing in So are again, and markets was the quarter? and we what domestic the cash deflation your operating flow the in

Michael McGarry

first will the the one. on take one. Vince I’ll jump Jeff, second

in cash operating statement had cash I flow was We’ll use less of Q first used, a of last filed. we flow than shortly year. $XX cash, our quarter which a is the was full million believe of than So have here it cash our released was our use when

Vince Morales

built inventory new business acquisition, the we’ve recently our as U.S. causation we inventory part work now Whitford stepped close the have acquisition contingency to there. that with factors and ERP be we’ll that of Brexit again, was A – we inventory with around both SEM of the refinish and want working our I’ve were down. pleased do live little been the out, other growth in We that couple and and as ahead system one of capital. with up actually the mentioned I that the with that’s the high a lot got that’s accounting get retail cost of acquisition along were metrics levels. said All we prior something and and most down in extended a bit not companies ahead in we the inventory being pleased we Michael working of we’re quarter, but that able year capital of a to through sales until had results of our of – price. inventory that build of flows to mentioned, a level going

talking focused that. We last specifically, about on we’re so have in week the teams that

better the to volume any haven’t demand in region. the especially major material geography. demand this as to opposed the The in really a things will our materials of go environment, we mentioned. that’s in don’t inflation, to-date. seen by more we you raw be which different it see in think each typically and may by we’re way cash go. is respect supply But light more in We – driven situation at differences typically regions of again raw anything predictor With of room point a that’s last to but year, flow still by supply So more

Michael McGarry

that’s so I’d all more have currency you the go down so add to weakness thing can the part, U.S. in southern only the Jeff, based, impact. is, way if the Latin dollar the south, America

about So that’s a think when total Latin in not but material, our south, real America sales no we number. material

So the a not you material should difference that regions. between assume there’s

Jeff Zekauskas

so Thank you great. Okay, much.

Michael McGarry

Thank you, Jeff.

Operator

McNulty BMO. of question Please next go from Our ahead. comes John

John McNulty

you Thanks articulate are disrupting but think there it’ll for may What’s in on what affected? indicated, the question. supply been be timing also you taking only Can and disruptions it there that looked you I some when remedied? believe my not are necessarily China. products Texas, supply Michael, like where in have

Michael McGarry

original the Well, let’s start issue. with

Going a to we they of is for Skies in delegated provinces, of disruption ago the back that Blue China into XXXX and to from a had initiative year lot saw Beijing the led actions. environmental coming enforcement the XXXX

much to under were the focused once in aggressive was readily much province, explosion But employment had they of Jiangsu and province more they get And supply available. so on the more much this that has so led on some the performers.

there. again, much little are to. the whether take next some to Beijing going say of you the one, you attention might paying products resource out the sure be the level There buy, what most we more cans but we’re if whether be to things you going them be aggressive one. that’s making is two, Jiangsu your can’t that but they’re that antibacterial be going will attention in is impact about be coming a the paint numbers, out the think to quarter are just the see controls another we’re while what would so contained re-institute would post out, overall to see to is quarter And three, for probably a the as paying it’s of or that themselves That it’ll and that of what would province – unique that enforcement healthy, epoxies in

John McNulty

very the for Thanks color. much it. Got

Michael McGarry

Thanks John.

Operator

of ahead. Steven Please question next Merrill comes Our from Lynch. America Byrne Bank of go

Steven Byrne

PPG ask more their? wanted you. reps in specifically respect getting Home Home and Depot it sales what’s aisle, to the Depot Yes, We’ve traction paint brands PPG initiative in to you, driving that with either thank of versus seen or paint the I just is scale any

Michael McGarry

suppliers are of agreement covering centers the the number various have you stores. upon to all Dependent reps the major major X vendors, All amount home with get that X for rep stores. sales sales the an of

where is good the news is have are number Depot And I driving retail our we been doing approach plus think very Home a has for. partners and customer as the the and change, Depot a but peers different positive they very anything teams the focuses other metric store. said our good, that the on competitors I than our solid job conversion doing. good opening team think everybody of accountable Home in I in large hold DIY us So, comps our we’re doing And on are the what my which not that’s a had at remarks,

Steven Byrne

products shelf within the any Home And of different fact DIY your that you’re pipeline Depot within expansion channel? Vince, at active you retail Depot given kind the pipeline in commitment branch acquisition that is into mentioned Home looking include to out potential space

Vince Morales

call acquisition products, basis. them I would Yes, it product-by-product what an with worked can we we Again, what on Home a value possibility. to bring Depot on

So to of an any type relationship. again, I wouldn’t be consider that acquisition

Steven Byrne

Okay. Thank you.

Operator

Harrison go of next Seaport from Securities. comes Mike Our ahead. Please question Global

Mike Harrison

afternoon. good Hi,

Michael McGarry

Hi Mike.

Mike Harrison

the weakness whether and could you those you in was timing holiday quarter. market you’ve little wondering seen a there the of during architectural on Latin factor. comment talk I mentioned I factors Michael. if was trends other America the saw maybe detail about improve? you the a that more Easter the that you know Can on

Michael McGarry

lot would products relevant really we coverage the products value what lot chain, been when up a only Comex, additional of fact to that technology the Yes. brought is some there’s premium in, is The value other sold of call a the factor the bought that we selling have I better done premium is than there’s that products. being them. so more The so

share on EBIT, the overall net very I leads but impact you to it’s but volume being when look a numbers bit positive. So that the share to a the wouldn’t or at negative, say little

quarter down marginally in timing impact. Christmas PPG a actually Easter but volume Christmas anticipating and actually and Overall the record Easter – the we’re team doesn’t move, we we the America major though Easter So there’s same. had for Mexico, though two and does our holidays that’s and of was the Latin even

Easter of all we kicked quarter couple quarter. second weeks so So our instead that ago off a falls of promotions first the and the in

Mike Harrison

like piece the it specifically Wondering it. is that then the in marine looks just that like feel and business, the have could pretty the I markets, said you visibility there the you’ve you business, comment the marine And Got going rates and faster growing marine key marine if in those strength growth in protective seeing so you’re on going than sustainable? piece. to you’ve past good what’s is protective be on in said on

Michael McGarry

Yes.

very we So XX after order is started off this XX base. the in up half orders month to XXXX. second the taking paint ships in, comes but the of a They’ll the generally low months

marine So is XX% probably down peak. business know you from its the

that low a the bottom, and and a anticipate coming business protective that double-digits, is though continuing. So lead both line marine trend off we very we overall in are positive that

Mike Harrison

very you Thank much.

Operator

of Dmitry Buckingham Silversteyn comes Our next Research. go question from Please ahead.

Dmitry Silversteyn

in in fulfilled us and sort give of of seen that April customers an quarters. siding whether factor backlog about in shy whatever North couple the contracted not will of Thanks big that, the as be question had call. of off companies on it is you’ve and you stores but for on market the the your first getting – I the sort demand delaying over of improving here afternoon. pushed confidence so March and built-up question ramp-up. teams Quick Good of on can Have than a and construction construction know coming couple experiencing, back weeks how next construction, taking the America terms rather are of and that my impact other are market and anything

Vince Morales

is Yes, this Vince. Dimtry

One the comparison year. fell April with very Easter. at Easter April last of had early in the the is late issues we

would a diluted. compare, the call from a in whether get seeing not say but a and too we’re good now, with early for by order is I it’s pickup to in you really what but So March. some we’re make we’ve to proxy normally bit diluted there it’s April, can pickup seen us displeased

Dmitry Silversteyn

Okay. for All it. Thanks Vince. right. That’s

kind of Are X% organic Second in something revenue that? you’re what X% carrying growth you’ve lower – XXXX, to talking the these than done be is thinking we that incremental be should three about about question for to acquisitions that contribution that we into businesses? your growth going to or

John Bruno

that. John, I’ll Dmitri, this take is

that’s of a acquisitions annual be a coatings, January, year faster we complete have $XXX been this to that three to million than revenue. provided Coatings Whitford said about going higher bit segment. able $XXX Industrial The in at million these industrial initial because total we annualized be and little guidance posted the benefit, majority In thought. So the our of Hemmelrath hair about both maybe we we originally could acquisitions

Dmitry Silversteyn

the business on in about we talked Is year so rates of saw? down that price and volume X% Europe collision overall Okay. your market talked refinish of business, market unfolds U.S., from the of the what recapture kind of you’ve performance That’s sort helpful. of still single-digits suffering side business? as in little in about wise, let’s and and should being And then so finally was you the to you X%. flat, bit see low improve decline being the about X% that say leaders you you line with therefore Are the those declines some or

Michael McGarry

overall, I wins. when having of the market we base market skosh still I we’re that a customer our feel see when and last the close the a to the I we’re X% below market. year think at shop a maybe, fact look but relatively that I were comfortable number and

Dmitry Silversteyn

you. Got

much. very you Thank Okay.

Michael McGarry

Yes, Dmitry.

Operator

question go Laurence of next Jefferies. ahead. Please from Alexander Our comes

Laurence Alexander

spread then, you as aerospace. Is first, your And roughly share it we the Because market your appear more ones as the raw use look steady secondly, that at be Can in in the quick about wider a getting about above bit talking than you the of think afternoon. market Good should thinking a pipeline? rates perspective the parts channels, Two the you wins they for against for the us Or raw hurdle material lot have gains higher chain? on reinvestment. a on materials. kind you’re several how give to of of to of suppliers little state? longer-term

though lagging – expectations the growth of over about risk you seeing are you raw so years? five say And worried three, materials are your demand next any capacity lag, your in for

Michael McGarry

right I’m not Well, about now, worried very margins them investing because are incremental their high.

So if suppliers, them last of few it you do a they’ve not about run good name so yourself. years, had names, won’t can the look that standpoint. worried But our I I’m from very at most you

still be side perspective, still low we holding of on our think single-digits, it to we’re I short-term we the that, see would said low that. low single-digits

think so spot, right Laurence. the we’re And I in

Vince Morales

into Yes, and have really is – is think then sweet that what of again, our Laurence your sort this industry I I plays values spot. an that technology question we’ve first

– I work been than to products new are of once customers marketplace. share more or new the the our with putting they they’re into think we’re and able gain we’ve our that products share, gaining entrance new

where really that’s winning aerospace. in we’re So

Laurence Alexander

Thank you.

Michael McGarry

comes go question of ahead. Robinson Please Sheehan Humphrey. SunTrust from Jim next Our

Jim Sheehan

would it – those to Thank acquisitions average you. average say think those levels? below to how so, expand you are PPG Hemmelrath that Whitford the margins? correct for to take margins are And you Is businesses do if it long and

Vince Morales

Hey Jim, Vince.

as at of for below and the recognized traditional remarks, accretive it’ll segment XX capture. very in margins segment take Michael segment. margins and a their highly array and prepared Hemmelrath in performing as to up the products, acquisitions SEM that’s brand is acquisition above good marketplace through Whitford to us, in performing that above we said synergy his well As us will scale those work come months XX was

Jim Sheehan

or numbers in characterize you some multiples the mostly you sector? And how seeing would you frothy in coatings, they’re today? global Perfect. reasonable M&A are deal regarding think Do

Michael McGarry

interest didn’t things to end probably so And we things or as Well, in. on. based that really certainly on synergies it’s differs an act market, we that at on a on to we Jim multiples based there’s other it that – geography, There act are call answer and on question. won’t market hard post singular looked have based

activity it’s the I’ll So today. there a again, marketplace. And out what’s depends it is just reiterate, – in then there by certainly really episodic

Vince Morales

what’s thing all like? and your and some other what’s what I But to the that the look we multiple. is is. what’s And is, synergy, in your pain, synergies multiple Whitford things them have the we were way Jim of the add range, you so different one bought really parse these each they post And single-digits would your growth into had Hemmelrath at look a are, acquisition, does

other And at so multiple. lot so just there the just of factors, a look is can’t you

Jim Sheehan

Thank you very much.

Operator

Hocevar ahead. question of Research. next from comes Northcoast Kevin Please Our go

Kevin Hocevar

that quarter. you everybody. watermark pricing in the afternoon be you pricing, first bit year. the good also high mentioned little than of that Vince it quicker you thought And a not the mentioned might you realize Hey,

how having X% little that X% So see view year-over-year upside rate growth does that of the you bit quarter’s bit then the think – the on you sales year second in a from Did be as the growth higher call to price. constant of would last on a of mentioned suggested quarter you’ll in I pricing? do based about currency X% a started? And

Michael McGarry

year. Well, two started we I’ll remind versus to get the the we throughout do QX expect last dollar things price you, QX. in higher year pricing absolute But

comp. we’re stacking top on again, a So of harder

So Kevin, be higher year. we the remains expect prior pricing QX a on pure dollar percentage same to definitely but than basis, in the staff

Kevin Hocevar

areas is programs, type $X,XXX over something like that? savings you cost Or the or you. where Got is on on last savings years? tackling couple cost million there in action there to press that need done of just be ready that couple take of the Okay. and the And mentioned front. the if weakness simple PPG those release, in be then bigger – Is might blocking has

Michael McGarry

traditional we decisive whatever comments take we out within and we’ll I tackling. around of way, be – things focused blocking see But is and remarks primarily there we lot on draconian can’t tackling. control. I something the more tackling. actions a aren’t a take in from think really could than you even We and blocking in the down to deeper our had is that fact mention that we if or sideways blocking going the prepared economies would those and the think dropping, there’s need call are what hide that And

Kevin Hocevar

very you Thank much. Okay.

Operator

management the question-and-answer concludes like any would turn conference remarks. for session. This back over our to I closing to

John Bruno

would this like their Bruno for you, John I again, interest Thank everyone PPG. is in Andrea, to thank time and

further first investor If earnings our you call. department. This relations our have concludes quarter please questions, any contact

Operator

now today’s presentation. Thank is you attending for conference The concluded.

disconnect. You may now

PPG Industries (PPG) 18 Apr 192019 Q1 Earnings call transcript