Release Date: April 19, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Tim, can you lay out the specifics that underlay your confidence for an earnings improvement during the back half of the year, especially with some upstream input costs such as energy trending higher?
A: Timothy M. Knavish - CEO & Chairman, PPG Industries, Inc.: We have a bold 10% EPS growth target, supported by proven margin and cash performance, strong volume momentum, satisfactory pricing, manufacturing momentum, and strength in key countries and businesses. We also have share gains launching across various coatings sectors and growth initiatives, with capital deployment adding further optionality.
Q: On the price versus raw materials dynamic, can you speak to whether you expect your raw material basket to be down from Q1 to Q2? And on the pricing side, what portion of your business do you expect to see real pricing as we push forward?
A: Vincent J. Morales - Senior VP & CFO, PPG Industries, Inc.: Raw materials were down high single digits in Q1, better than our forecast, and we expect them down mid-single digits in Q2. For pricing, excluding European energy surcharge impacts, we expect continued structural pricing improvements across our businesses.
Q: You talked about being confident in turning the corner in volume growth in 2Q. Can you provide more color on how much market growth you need or macro help and how much really just comes from your execution?
A: Timothy M. Knavish - CEO & Chairman, PPG Industries, Inc.: The positive volume outlook for Q2 is based on overall company trends, the launch of share gain wins, and current orders and shipments. We're comfortable with what we're seeing early in the quarter.
Q: In U.S. architectural, have you seen any disruption since your announcement in late February? What's the level of interest in these assets?
A: Timothy M. Knavish - CEO & Chairman, PPG Industries, Inc.: We executed a detailed communications plan post-announcement with minimal disruption. Interest in the architectural U.S.-Canada business is higher than expected, and we are exploring all options to maximize shareholder value.
Q: Can you discuss the targeted pricing you're doing in Performance Coatings and if you're having more success following the recent uptick in oil prices?
A: Timothy M. Knavish - CEO & Chairman, PPG Industries, Inc.: We continue to execute on pricing across Performance Coatings, delivering value beyond the paint can through advanced technologies and services. We expect to maintain pricing power in refinish, aerospace, and other segments.
Q: What are you seeing in India in terms of market growth and your current position?
A: Timothy M. Knavish - CEO & Chairman, PPG Industries, Inc.: India is showing tangible industrial production and infrastructure growth, with strong positions in automotive, industrial, and refinish sectors. We are optimistic about continuous growth in the region.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
