Dynamic black shade evokes depths of our universe and space exploration Latest edition marks decade since Axalta launched its first Automotive Color of the Year GLEN MILLS, Pa., Jan. 29, 2024 (GLOBE NEWSWIRE) -- Axalta Coating Systems (NYSE:AXTA), a leading global coatings company, today announced its 2024 Global Automotive Color of the Year – Starry Night. The latest edition marks the 10th year Axalta has introduced its automotive color of the year and the first time it has featured a black shade. Starry N ...

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 | --- | --- | --- | |--------------------------------------------------------------|----------------------------------------------- ...