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Axalta posts Q2 sales decline

July 30/2020

MOSCOW (MRC) -- Axalta Coating Systems Q2 sales fell 43.6% year on year as demand declined because of impact of the coronavirus, said the company.

The company swung to a Q2 net loss, driven primarily by volume decline impacts. Sequentially, sales improved month on month, following a bottom in April. June net sales were 82% higher than in April.

In the current Q3, Axalta continues to be impacted by the coronavirus pandemic across its business, although impacts on customer demand related to the virus continues to gradually improve month-to-month, it said.

In light of the demand headwinds, Axalta will undertake a global restructuring, aimed at addressing the continued effects of the pandemic and to improve its cost structure, it said.

The restructuring is expected to result in a net 5% reduction of Axalta's global workforce, or about 550 employees, with the potential for additional reductions from Europe, subject to works council consultations and local legal requirements.

The workforce reduction is expected to be completed over 24 months, generating savings of about USD50m, with USD40 million expected by the end of 2021.

As MRC informed earlier, Axalta Coating Systems Ltd. announced its financial results for the fourth quarter and full year ended Dec. 31, 2019. Net sales of USD1,098.4 million for the fourth quarter decreased 5.8 percent, including 1.3 percent negative foreign currency translation impact and a two percent impact from the sale of a consolidated Joint Venture interest in Q2 2019.

As MRC informed earlier, Axalta Coating Systems has completed its previously announced acquisition of the Spencer Coatings Group, a leading manufacturer of high performance industrial coatings for heavy-duty equipment, general industrial, oil and gas, and glass coatings segments.

As MRC informed earlier, Russia's output of chemical products rose in June 2020 by 2.6% year on year. However, production of basic chemicals increased year on year by 4.9% in the first six months of 2020. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the output in January-June. Production of benzene was 106,000 tonnes in June 2020, compared to 110,000 tonnes a month earlier. Overall output of this product reached 721,000 tonnes over the stated period, up by 3.9% year on year.
Author:Anna Larionova
Tags:petroleum products, crude oil, petrochemistry, Axalta Coating Systems.
Category:General News
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