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Axalta easily beats estimates on strength in industrial, automotive demand

February 19/2021

MOSCOW (MRC) -- Axalta has reported fourth-quarter net income up 67.1% year-on-year (YOY), to USD69.7 million, on net sales down 2.2%, to USD1.07 billion, said Chemweek.

Adjusted earnings totaled 58 cents/share, up 38.1% YOY and well ahead of analysts consensus estimate of 37 cents/share, as reported by Refinitiv (New York, New York). Volumes declined 3.8% YOY, and average price and product mix was down 0.2%. Lower YOY volumes were mostly the result of COVID-19-related macroeconomic impacts, with the automotive refinish coatings market hardest hit, Axalta says.

The companys results included tailwinds from rapidly improving demand across many industrial coatings segments, as well as benefits from the cost actions taken during 2020 to help offset pandemic volume impacts, says Robert Bryant, president and CEO of Robert Bryant. During the fourth quarter, Axalta saw evidence of ongoing demand recovery across most businesses and regions, while ongoing benefits from cost actions ahead of earlier expectations helped to deliver strong results for the quarter."

Performance coatings segment net sales were down 3.5% YOY, to USD703.9 million, while segment adjusted EBIT increased 9.7%, to USD129.5 million. Volumes fell 5.8% YOY, with declines in automotive refinish partly offset by higher industrial volumes. Average price and product mix was down 0.3% YOY.

Transportation coatings segment net sales increased 0.5% YOY, to $370.6 million, while segment adjusted EBIT nearly doubled, to USD47.9 million from USD25.6 million. Volumes were up 0.3% YOY, with higher global automotive production offsetting declines in light-truck production. Price and product mix effects were neutral, Axalta says.

As per MRC, Axalta said that it will realign its business structure to fold most organizational functions into its two global business units, transportation coatings and performance coatings.

As MRC reported earlier, in July 2017, Axalta Coating Systems completed its previously announced acquisition of the Spencer Coatings Group (UK), a leading manufacturer of high performance industrial coatings for heavy-duty equipment, general industrial, oil and gas, and glass coatings segments.

We remind that Russia's output of chemical products rose in November 2020 by 9.5% year on year. At the same time, production of basic chemicals increased in the first eleven months of 2020 by 6.6% year on year, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-November 2020 output. November production of polymers in primary form rose to 896,000 tonnes from 852,000 tonnes in October. Overall output of polymers in primary form totalled 9,240,000 tonnes over the stated period, up by 17.1%  year on year.
Author:Anna Larionova
Tags:petroleum products, car components, compounding, compounds, Axalta Coating Systems.
Category:General News
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