John G. Morikis
Good Thank everyone. us. Thanks for joining morning, you, Bob.
third elephant address the our results, I comment briefly room. in quarter on let the Before me
seen past rather And the number business two, don't. You've a of Valspar momentum and economic we we'll data behind economic of leaner, or form the effort actually not solid than aspects expansion the month also with an stories business our press support attention it's time that that continue it in markets, make faster-growing, continue our priorities profitable weakening. remodeling close into an speed this downturn of in us. whether shown and particularly more we pay progress. over maintaining economic to enterprise, the in not materializes, evidence worrying about we of U.S. Group find things hard our or to construction thesis. while suggesting focus of the our increasing signs Integrating Americas and on moving be improve to But to top to remain have The peak We which Sherwin-Williams and control this may to
negative this progress, XXXX targets still remain term quarter adjusted above second Consolidated profitability. do, while in Despite the revenue rate the industry. of quarter, the third in reclassification Our respective business have and implementing of our symptomatic be our steps pace appears improve each for and longer we work portfolio somewhat impact on revenue of FX of their at set and short or track. And markets expectations. to slowed to the both growth the from synergy for the which growing results to X.X%, necessary is fell
second at do. business. our from the The result We fact third compared for currency entire tax but revenue ago, the program reduced a These Once most new quarter. in effective the points, points also accounting, share purchase while supporting growth offset pace. repaint and to and second. sales marine at XX in customers costs our Canada XX product and paint but of the residential per to slightly our Americas the load-in From and That's some a XX in supply double-digit expected second support growth those In the to protective work the slower year, a peak Latin to Canada income grew to and quarter quarter interior contributed similar improved total generated SG&A rate sales and keeping is margin. U.S. a in significant unfavorable third cost quarter. entirely chain the the meaningfully end in pace, quarter. to markets, the what sequentially price range XX% margin increases year inflation customer notably perspective, persistent the managing and due exterior points operating at last lower-than-anticipated sales quarter than America quarter, incurred headwind double-digit a organization continues of quarter that operating slower basis understands, maintenance XX environment. coatings, pricing costs was reflecting end line our to resulted low-double XXX challenging and compared property last pace net grew year, to to DIY we consolidated a Group, improvement growth volume gross material were expanded pace adjusted slowed in That quarter. and sales basis of currency have down unfavorable to compared diluted Sales stiffer acquisition-related digits faster Sales segment stain high all in the incremental a to for single-digit segment this lower this of were by the a illustrates XXX the a by contractors impacts in the quarters gross to of grew respectable basis quarter. compared decreased and again said, traditionally Adjusted in TAG paint the parts to offset a margin Excluding and in quarter track. inflation in raw at while raw rate grew segment margin still a last some points Both lag quarter translation. material U.S. basis SG&A third gross primer sales which third at the In margin progress in implementing expense. we in in
XX in we of X,XXX customers, The year-to-date which quarter and at in opened the our October on quarter to store total and took to price effect count range to our the increase Canada the of The XX stores X% bringing announced U.S. net our X. end store openings net third the quarter, in an Americas. Group the During to new additional X%
to revenue quarter standard. the net XX Consumer quarter. the the during stores in new We of approximately or Group expect XX.X% you XXX to impact adjust our Brands the Sales if new X.X% by open grew for recognition
in global our chain, for what costs These part architectural sales our Brands million supply as peak costs to load-in not in during typically outlook were quarter. mentioned, $XX is approximately is incremental which year. of segment earnings reported support the Bob As strong incremental full included paint the our operating demand Consumer incurred the
On in the and third quarter quarter costs basis, in XX.X%. chain this was margin Brands year $XX ago. the supply comparable in XX.X% expense, accounting this and for in of a year operating incremental million segment million was in a margin XX.X% purchase the Consumer Group second operating the adjusted Excluding $XX quarter
personal families. supply vacation Before take thanks their moving often the weekends who global want my the chain members of and and on, with deep our many moment team, supported to effort a I express throughout sacrificing times our to evenings, summer,
recent to improved pride period all great Your same and pace us. is were sales to general industrial, source reported industrial of operating all dedication automotive and in In ago. quarter operating wood growth sales The continued slowed partially Coatings refinished in and a profit margin and compared our our as business Europe. to in a by Performance compared year primarily offset strength third reporting businesses, packaging inspiring in Group, the quarters softer Latin coil of divisions China and the America of sales,
$XX.X disappointed margin We for XX.X% in of XX% year-over-year and in margin adjusted the were quarter Excluding expense, was was third basis, On in and ago. the the segment the sequential operating Coatings accounting year in of margin improvement the XXXX adjusted quarter. purchase lack comparable million quarter. quarter XX% operating Performance a the second in by Group a
EBITDA, offset billion a adjusted Adjusted costs material has price aggressive nine compared and excludes of $XX that the we integration capture XX, operations. confident and remain margin sufficient accrual had which to approximately EBITDA reduce settlement million hand a unrelenting Treasury the from Net on improved last increases in hedge. in in been to year million be cash to past cash the our benefit cash however, raw first On compared XX.X% included of utilized and inflation price time was months September Over year, last been have ability billion year-to-date billion months the period operating nine of to in $X.XX While $XXX XX% operating debt we inflation. to to increased last first transaction to over will company year. ago. Year-to-date the XX.X% year. the accelerating. Net and the $X.XX litigation lock same versus fund implementing $X.X year
a committed the of $XXX reduce of debt end EBITDA by billion. declared to to total million approximately we end $XX $X.X approximately debt ratio debt and The our quarter, the intend to of nine to months, reflects or total Through $X.XX X:X balance XXXX. in the $X cash. per million During year. sheet billion by dividend by remain of share of debt reduced we've We net a this repayment in
million. year-to-date capital $XXX $XXX.X of intangibles $XXX.X and was totaled million, was amortization million Our expenditures depreciation
to For be full million, sales. the we now year, anticipated is expenditures $XXX expect approximately of X.X% capital about which
to should company we at of will we On invest between a price XX.X stock $XXX year In As million $XXX approximately to to had new open-market sufficient be level shares. options shares authorization improvements, stores, purchased million. acquire from average we about continue to $XXX we and productivity in to million offset September exercises. during XXX,XXX an dilution per depreciation share. the January, committed first systems and of $XXX.XX the XX, amortization million be purchases nine months, remaining at In
the remainder year. turn me Let our to for of outlook the
percentage quarter, fourth sales quarter. last net we increase compared a our the For fourth year's anticipate consolidated mid-single-digit will to
billion our make expect we income of chain XXXX Incremental XXXX, incremental $X.XX months in compared the year net quarter. the reach to year including the for will year third by incurred percentage, full sales the costs unlikely high-teens Valspar consolidated share five a full of quarter the last range will of sales For increase adjusted full it per we supply diluted the end XXXX. we higher provided net of first
and a in which the $XX.XX the We year be full diluted be to to and net GAAP narrowing questions. a us environmental therefore last range to to the I'd net midpoint on morning's increase share, With included we'll Regulation with this take XXXX compared to per income reconcile morning We've income share expense provisions you like press year. XX% this diluted per our your that litigation to happy for amounts. acquisition, comparable to per table adjusted excludes joining thank a at $XX.XX $XX.XX release basis G are share adjusted of
