The Zacks Chemicals Specialty industry is facing challenges from demand softness, largely due to a slowdown in Europe and a slow economic recovery in China. Margins of companies in this space also remain under pressure due to the still-elevated input, supply chain and logistics costs.Industry players like Celanese Corporation (CE) , Axalta Coating Systems Ltd. (AXTA) and Element Solutions Inc (ESI) are banking on strategic measures, including operating cost reductions, to tide over a persistently challengin ...

Voltatex® 7345 A ECO Wire Enamel enables efficient electric motors, powertrains and energy storage devices, advances electrification, and reduces CO2 emissions Sustainable Raptor® Flameproof Coating extends the useful life of automotive parts especially at extremely high temperatures GLEN MILLS, Pa., Jan. 10, 2024 (GLOBE NEWSWIRE) -- Axalta Coating Systems (NYSE:AXTA), a leading global coatings company, today announced that both its Voltatex® 7345 A ECO Wire Enamel and its Raptor® Flameproof Coating have ea ...

Core Viewpoint - Axalta Coating Systems is set to release its fourth-quarter and full-year 2023 financial results on February 8, 2024, at 6 a.m. ET, followed by a conference call at 8 a.m. ET to discuss the financial performance [1]. Group 1: Financial Results Announcement - The financial results will be available on Axalta's Investor Relations site [1]. - A conference call will be hosted by the CEO and CFO to review the financial performance [1]. - A live webcast of the conference call will be accessible, with a replay available until February 8, 2025 [1]. Group 2: Conference Call Details - The dial-in phone number for the conference call is 201-689-8560 [2]. - A replay of the call will be available until February 15, 2024, with a specific replay dial-in number and passcode provided [2]. Group 3: Company Overview - Axalta is a global leader in the coatings industry, offering innovative and sustainable coating solutions across various applications [3]. - The company has over 150 years of experience and serves more than 100,000 customers in over 130 countries [3]. - Axalta focuses on preventing corrosion, increasing productivity, and enhancing durability through its products [3].

GLEN MILLS, Pa., Jan. 09, 2024 (GLOBE NEWSWIRE) -- Axalta Coating Systems (NYSE: AXTA), a leading global coatings company, will release its fourth-quarter and full-year 2023 financial results at 6 a.m. ET on Thursday, February 8. The release and supporting materials will be posted to Axalta’s Investor Relations site. In addition, the company will host a conference call at 8 a.m. ET on February 8. Chris Villavarayan, Chief Executive Officer and President, and Carl Anderson, Senior Vice President and Chief Fi ...

Axalta Coating Systems Q3 2023 Financial Results Legal Notices Forward-Looking Statements This presentation and the oral remarks made in connection herewith may contain certain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 regarding Axalta and its subsidiaries including, but not limited to, our outlook/commentary and/or guidance, which includes net sales growth, Adjusted EBIT, Adjusted EBITDA, depreciation and amortization, step-up depreciation an ...

Financial Data and Key Metrics Changes - Q3 net sales increased by 6% year-over-year to $1.3 billion, a new company record, driven by strong performance in Mobility Coatings [6][15] - Adjusted EBIT rose to $188 million, a 27% increase from $148 million in the prior year, with adjusted EBITDA increasing by 24% to $261 million [6][17] - Adjusted EBIT margins improved by 240 basis points year-over-year to 14.3%, attributed to raw material deflation and cost discipline [7][15] - Free cash flow increased by $131 million year-over-year to $182 million, with expectations to deliver approximately $400 million for the full year 2023 [7][17] Business Line Data and Key Metrics Changes - Performance Coatings net sales were $856 million, a 2% improvement year-over-year, with Refinish organic net sales improving by low-single-digits [18][19] - Mobility Coatings net sales increased by 13% year-over-year to $453 million, with light vehicle organic net sales up by 12% [20][22] - Adjusted EBIT for Mobility Coatings improved to $40 million from $4 million a year ago, with adjusted EBIT margin increasing by 790 basis points to 8.8% [22] Market Data and Key Metrics Changes - Strong performance in the Asia Pacific region, particularly in China, where volumes grew significantly [16][20] - EMEA and North America markets are expected to remain favorable into the fourth quarter [16] - The company anticipates a muted volume growth in Q4 due to a slight decline in Performance Coatings, while Mobility sales are expected to remain strong [26] Company Strategy and Development Direction - The company is focused on improving efficiency and performance across its portfolio, with a rigorous pricing approach and cost optimization initiatives [12][13] - The acquisition of André Koch aligns with the strategy to diversify and expand Refinish offerings, enhancing presence in Switzerland [9][10] - The company plans to accelerate internal investments and improve return on invested capital, with a strategic focus on operational objectives [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory, expecting record adjusted EBITDA in 2023 and solid growth into 2024 [8][27] - The company is committed to transforming its operations and believes that ongoing initiatives will yield positive results [28] - Management highlighted the importance of maintaining pricing discipline amid inflationary pressures in labor and raw materials [12][16] Other Important Information - The company has repurchased $50 million worth of shares, indicating strong confidence in its equity [24] - The net leverage ratio improved to 3.2 times, with a target of achieving a ratio of 2 to 2.5 times in the future [23][24] Q&A Session Summary Question: Pricing Environment Going Forward - Management indicated that pricing discipline will continue, with expectations of low single-digit pricing growth into 2024 [30][31] Question: Gross Margin Trajectory - Management believes that structural enhancements and cost initiatives will support margin improvement, with potential to reach pre-pandemic levels [32][33] Question: Acquisition Strategy in Europe - The acquisition of André Koch is seen as a strategic move to enhance distribution and customer relationships in Europe [36][38] Question: Investments and Returns - Management detailed investments in ERP implementation and purchasing initiatives, expecting significant returns in 2024 [42][44] Question: Outlook for Auto Builds - Management expects global auto builds to increase, particularly in China, while North America may see some impact from the UAW strike [64][66] Question: Refinish Sales Growth - Management anticipates growth in Refinish sales in 2024, supported by recent acquisitions and ongoing market share gains [68][70]

Sales Performance - Net sales increased by 6.6% for the nine months ended September 30, 2023, driven by a 7.4% increase in average selling price and product mix, partially offset by a 1.3% decrease in volumes [102]. - Performance Coatings segment net sales increased by 2.0%, with a 8.2% increase in average selling price and product mix, while volumes decreased by 7.0% [102]. - Mobility Coatings segment net sales increased by 16.5%, driven by an 11.3% increase in sales volumes and a 5.3% increase in average selling price and product mix [102]. - Total net sales for the third quarter of 2023 were $1,309.0 million, compared to $1,238.7 million in the same period of 2022, reflecting a 5.7% increase [103]. - Net sales for the three months ended September 30, 2023, increased to $1,309.0 million, a 5.7% increase from $1,238.7 million in the same period of 2022 [113]. - Net sales for the nine months ended September 30, 2023, reached $3,886.8 million, reflecting a 6.6% increase from $3,647.7 million in the prior year [113]. - Net sales in the Performance Coatings segment reached $856.1 million for the three months ended September 30, 2023, a 2.2% increase from $838.0 million in the same period of 2022 [128]. - The absence of a $20.3 million reduction in the prior year period from the Customer Contract Restructuring contributed to the increase in net sales for the nine months ended September 30, 2023 [113]. - Net sales for the three months ended September 30, 2023, increased to $452.9 million, a 13.0% increase from $400.7 million in the same period of 2022 [130]. - For the nine months ended September 30, 2023, net sales reached $1,327.6 million, up 16.5% from $1,139.5 million in the same period of 2022 [130]. Financial Performance - Cost of sales for the three months ended September 30, 2023, was $885.5 million, a 1.0% increase from $876.6 million in the same period of 2022 [115]. - Selling, general and administrative expenses for the three months ended September 30, 2023, rose to $209.0 million, a 12.1% increase from $186.4 million in the same period of 2022 [117]. - Research and development expenses for the three months ended September 30, 2023, increased to $18.5 million, a 12.1% increase from $16.5 million in the same period of 2022 [120]. - Amortization of acquired intangibles decreased by 31.3% to $20.9 million for the three months ended September 30, 2023, compared to $30.4 million in the same period of 2022 [122]. - Adjusted EBIT for the Performance Coatings segment increased to $135.0 million for the three months ended September 30, 2023, up 10.8% from $121.8 million in the prior year [128]. - Adjusted EBIT margin for the Performance Coatings segment improved to 15.8% for the three months ended September 30, 2023, compared to 14.5% in the same period of 2022 [128]. - Income before income taxes for the three months ended September 30, 2023 was $102.6 million, compared to $85.1 million in the prior year [125]. - Adjusted EBIT for the three months ended September 30, 2023, rose to $39.8 million, reflecting a significant increase of 1,005.6% compared to $3.6 million in the prior year [130]. - Adjusted EBIT margin for the nine months ended September 30, 2023, improved to 6.6%, compared to 0.6% in the same period of 2022 [130]. Operational Challenges - The company experienced temporary operational disruptions in North America due to ERP system implementation, impacting net sales in the Performance Coatings segment [104]. Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended September 30, 2023, was $289.3 million, a significant increase from $48.2 million in the same period of 2022 [135]. - Net cash used for investing activities for the nine months ended September 30, 2023, was $64.5 million, primarily for purchases of property, plant, and equipment [136]. - Net cash used for financing activities for the nine months ended September 30, 2023, totaled $252.7 million, including voluntary prepayments of $150.0 million on the 2029 Dollar Term Loans [137]. - Cash and cash equivalents at September 30, 2023, were $605.8 million, down from $645.2 million at the end of 2022 [142]. - The company had $529.7 million available under the Revolving Credit Facility as of September 30, 2023 [132]. - The company continues to maintain sufficient liquidity to meet cash requirements, including debt service obligations and working capital needs [144]. Debt and Financing - The company prepaid $150.0 million of the outstanding principal amount of the 2029 Dollar Term Loans during the nine months ended September 30, 2023 [105]. - Total borrowings, net decreased from $3,704.3 million as of December 31, 2022 to $3,542.6 million as of September 30, 2023, a reduction of approximately 4.4% [144]. - Long-term debt decreased from $3,673.3 million as of December 31, 2022 to $3,510.6 million as of September 30, 2023, a decline of approximately 4.4% [144]. - The interest rate spread for the 2029 Dollar Term Loans was lowered from 3.00% to 2.50% effective July 1, 2023, resulting in a $4.0 million loss on financing-related costs [144]. - The company recorded a write-off of $2.1 million related to unamortized deferred financing costs and original issuance discount due to the repricing of loans [144]. Currency and Market Impact - Raw material costs reflected deflationary benefits during the three and nine months ended September 30, 2023, compared to previous periods [107]. - The impact of currency translation on net sales was favorable, primarily due to the strengthening of the Euro, Mexican Peso, Brazilian Real, and British Pound [113]. - Currency exchange impacts on cash for the nine months ended September 30, 2023, were unfavorable by $18.9 million, primarily due to fluctuations in the Euro and Russian Ruble [138]. - No material changes in market risks have been disclosed since the last annual report [150]. Leadership Changes - Leadership transitions included the appointment of Carl Anderson as the new Chief Financial Officer effective August 14, 2023 [108].

Axalta Coating Systems Ltd. (NYSE:AXTA) Q2 2023 Earnings Conference Call August 2, 2023 8:00 AM ET Company Participants Christopher Evans - VP, IR Chris Villavarayan - CEO and President Sean Lannon - CFO Conference Call Participants Christopher Parkinson - Mizuho Securities John McNulty - BMO Capital Markets Lucas Beaumont - UBS Aleksey Yefremov - KeyBanc Capital Markets Duffy Fischer - Goldman Sachs Vincent Andrews - Morgan Stanley Anthony Mercandetti - Deutsche Bank Matthew Krueger - Robert W. Baird ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 001-36733 | --- | --- | --- | |--------------------------------------------------------------|----------------------------------------------- ...

Axalta Coating Systems Ltd. (NYSE:AXTA) Q1 2023 Earnings Conference Call May 3, 2023 8:00 AM ET Company Participants Chris Evans - VP, IR Chris Villavarayan - CEO and President Sean Lannon - CFO Conference Call Participants Christopher Parkinson - Mizuho Kevin McCarthy - Vertical Research Partners Ghansham Panjabi - Baird John McNulty - BMO Capital Markets David Begleiter - Deutsche Bank Aleksey Yefremov - KeyBanc Capital Markets Vincent Andrews - Morgan Stanley Mike Leithead - Barclays Duffy Fischer - Gold ...