Release Date: May 01, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: How much of the volume gains for the quarter would you attribute to share gains? How important has cross-selling been and increased offerings versus maybe your larger homebuilding customers gaining share themselves and you just benefit from that additional volume opportunity?
A: (Mark Steven Bender - Executive VP & CFO) The volume gains are largely attributed to our alignment with nationwide homebuilders who are gaining market share, allowing us to grow alongside them. Our brand offerings also penetrate well into the repair and remodeling market, not just new construction.
Q: On the sales and margin guide for HIP that you maintain, are there additional price cost headwinds which you're baking into that outlook? What's your outlook for volumes for the year?
A: (Mark Steven Bender - Executive VP & CFO) The current guidance accounts for the elevated interest rate environment and sales incentives provided by national homebuilders. The outlook remains prudent, but we are off to a strong start and will reassess guidance based on how the year progresses.
Q: How would you describe the visibility on your order books in HIP? Do you have it through the second quarter? Is it into the third quarter?
A: (Mark Steven Bender - Executive VP & CFO) We have good visibility into the second quarter with a strong backlog, particularly in our Siding & Trim and Pipe & Fittings businesses, which are good indicators of construction activity.
Q: Could you discuss the impact that the Red Sea shipping challenge had on your European operations?
A: (Albert Yuan Chao - President, CEO & Director) The Red Sea situation led to a slowdown of imports to Europe during the first quarter, which is expected to continue improving our volume, especially as we enter the best quarters of the year.
Q: What are your expectations for the PEM segment in the second quarter, particularly regarding volume and price, and the caustic soda market?
A: (Albert Yuan Chao - President, CEO & Director) We anticipate a flattish outcome for PEM in the second quarter with stable prices. There was a price increase in caustic soda in the first four months, and we expect global conditions to influence further price stability.
Q: On Slide 6, you list key categories of your products. Can you provide sales performance commentary? Do any categories stand out as particularly strong or not?
A: (Mark Steven Bender - Executive VP & CFO) The Pipe & Fittings and Siding & Trim categories performed very well. The acquisition of Boral has also enhanced our roofing materials, windows, and decorative stone offerings, contributing positively to our sales.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
