N.A. Chems & Pkg’g "UBS Toronto conference takeaways" Spector

研报英文原文证据摘录

N.A. Chems & Pkg’g "UBS Toronto conference takeaways" Spector

uption occurs (but noted the Saudi plant

continues to run).

DD sees minimal risk of demand destruction on the HC/Water side given 1) the

length of Water order book with 6-8 month replacement order visibility and ~12

month lead time on new projects, and 2) more non-elective surgical exposure (ie

cardio) with less price elasticity. Some risk remains on auto and construction

exposure (within diversified industrial), but DD has guided conservatively here

assuming modest declines in auto and ~stable construction (non-res growth

offsetting resi declines). Costs also remain a risk, but DD is putting in place price

where needed (incl surcharges), and notes less oil-linked raws exposure vs legacy

DD portfolio.

RPM

Matt Schlarb - VP Investor Relations & Sustainability

RPM focused on its expectations to outgrow markets in good times and

outperform in weaker times with a larger exposure to repair/remodel vs new builds

(>50% of construction exposure). Longer-term RPM looks for volume growth to

eventually make the underlying cost savings improvements more visible, noting 2-

3% volume growth would yield an above avg drop through. Near-term demand

remains resilient in Construction and Performance segments (NA non-res,

industrial capex, infrastructure), while Consumer demand remains weak.

RPM continues to push more into systems and services across its businesses.

Providing a wall “solution” instead of a component could yield ~10x more value

for RPM, and benefit the customer in terms of faster installation and warranties.

This also links with more of a consultative approach with larger customers on

capital efficiency and also working with RPM to extend asset life on building

roofing, siding, flooring, and HVAC.