02.06.18
Axalta Coating Systems Ltd. announced its financial results for the fourth quarter and full year ended Dec. 31, 2017.
Fourth Quarter 2017 Highlights:
Performance Coatings net sales were $732.3 million in Q4 2017, an increase of 20.7 percent year-over-year including 4.2 percent favorable foreign currency contribution. Constant currency net sales increased 16.5 percent, driven by a 14.5 percent acquisition contribution and 2.5 percent higher average selling prices.
The Transportation Coatings segment produced net sales of $432.5 million in Q4 2017, an increase of 2.8 percent versus fourth quarter 2016. Constant currency net sales increased 0.2 percent year-over-year, driven by a 2.4 percent increase in volumes, largely offset by 2.2 percent lower average selling prices.
Axalta ended the year with cash and cash equivalents of $769.8 million. Its net debt was $3.1 billion as of year-end, compared to $3.3 billion as of Sept. 30, 2017.
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Fourth Quarter 2017 Highlights:
- Net sales of $1,164.8 million, up 13.4 percent as-reported and 9.9 percent on a constant currency basis versus Q4 2016, including 8.6 percent from acquisition contribution;
- Net loss driven by U.S. tax reform impacts, severance charges and acquisition-related costs;
- Adjusted EBITDA growth largely driven by acquisition contribution and incremental productivity savings, offset partly by higher raw material prices;
- Operating cash flow of $233.6 million in Q4 versus $228.0 million in Q4 2016; free cash flow of $195.8 million in Q4 versus $187.1 million in Q4 2016
- Net sales of $4,352.9 million, up seven percent versus 2016, largely driven by acquisition contribution;
- Net income muted by impacts of U.S. tax reform, Venezuela deconsolidation, severance charges and acquisition-related costs;
- Slightly lower Adjusted EBITDA due to moderate pricing pressure in Transportation Coatings, lower volumes in Performance Coatings, raw material inflation and natural disasters;
- Operating cash flow of $540 million in 2017 versus $559.3 million in 2016; free cash flow of $415 million versus $423.1 million in 2016
Performance Coatings net sales were $732.3 million in Q4 2017, an increase of 20.7 percent year-over-year including 4.2 percent favorable foreign currency contribution. Constant currency net sales increased 16.5 percent, driven by a 14.5 percent acquisition contribution and 2.5 percent higher average selling prices.
The Transportation Coatings segment produced net sales of $432.5 million in Q4 2017, an increase of 2.8 percent versus fourth quarter 2016. Constant currency net sales increased 0.2 percent year-over-year, driven by a 2.4 percent increase in volumes, largely offset by 2.2 percent lower average selling prices.
Axalta ended the year with cash and cash equivalents of $769.8 million. Its net debt was $3.1 billion as of year-end, compared to $3.3 billion as of Sept. 30, 2017.
Axalta is updating its outlook for the full year 2018 as follows:
- Net sales growth of 8-9 percent as reported, or 6-7 percent excluding FX tailwinds;
- Adjusted EBITDA of $940-980 million;
- Interest expense of ~$165 million;
- Income tax rate, as adjusted, of 19-21 percent reflecting the anticipated benefit of the enactment of the U.S. Tax Cuts and Jobs Act legislation;
- Free cash flow of $420-460 million;
- Capital expenditures of ~$160 million;
- Depreciation and amortization of ~$365 million;
- Diluted shares outstanding of ~249 million
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