• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Research
    • Markets & Technologies
    • Raw Materials
    • Top Companies
    • Directories
    • Jobs
    • Events
    • Microsites
    • More
  • Magazine
  • News
  • Research
  • Markets & Technologies
  • Raw Materials
  • Top Companies
  • Directories
  • Jobs
  • Events
  • Microsites
  • Current / Back Issues
    Features
    Business Corner
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Subscribe Now
    Advertise Now
    World Reports
    eBook
    Top Features
    Powder Coatings Market

    Performance Enhancing Additives

    The Role Of Kilowatt Hours In Measuring Mill Performance

    The 2023 Marine Coatings Market

    PPG: Treated Silicas Enable Tire Manufacturing Energy Savings and Reduced Complexity
    Breaking News
    Online Exclusives
    Distributor News
    Financial News
    Paint & Coatings Manufacturer News
    People In the News
    Price Increases
    Product News
    Raw Materials & Equipment
    Video Bites
    Suppliers News
    Live From Shows
    Top News
    GIT Names Kent Young to Board of Directors

    SONGWON Names New Leader for Business Unit Coatings

    Covestro LLC Recognized for Sustainability Efforts with Ohio EPA E3 Award

    Fraunhofer IPA Creates Pigments from Crustaceans

    BCF Crowned Best Trade Association of the Year
    Top Companies report
    Market Research
    White Papers / Tech Papers
    Technical Papers
    Product Spec Sheets
    World Reports
    Adhesives and Sealants
    Aerospace Coatings
    Architectural Coatings
    Automotive Coatings
    Automotive Refinish
    Business Operation
    Color Trends & Forecast
    Construction Chemicals
    Corrosion Control
    Industrial Coatings
    Laboratory Equipment
    Marine Coatings
    Market Trends & Forecast
    Powder Coatings
    Production Equipment
    Radcure Coatings
    Special Purpose Coatings
    Wood Coatings
    "Green" Coatings

    GIT Names Kent Young to Board of Directors

    AkzoNobel’s Acquisition of Kansai Paint Decorative Coatings Prohibited in Three Africa Countries

    Sherwin-Williams DesignHouse Releases Industrial Trend Report

    Krylon Announces 2024 Color of the Year: Bluebird

    U.S. Green Building Council Launches Draft LEED v5 for Operations and Maintenance
    Additives
    Binders
    Pigments
    Solvents

    Coating Additives Market Worth $10.5B by 2028: MarketsandMarkets

    Micro Powders Showcases Natural, PTFE Alternative Additives at 2023 WCS

    OQ Chemicals Announces Price Increases for Oxo Intermediates

    BASF Broadens Monomers Portfolio, Launches Bio-based 2-Octyl Acrylate

    “MyCarbonFootprint”: BASF Launches Dashboard for Sustainable Procurement
    Company Capabilities
    Buyers Guide
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    W. R. Grace & Co.

    Clariant Additives

    Active Minerals

    EPS

    Arkema
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    The Gulf Coatings Show

    Western Coatings Symposium 2023

    Pacific Coatings Show

    CHINACOAT 2023

    ABRAFATI 2023
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    W. R. Grace & Co.

    Clariant Additives

    Active Minerals

    EPS

    Arkema
    • Magazine
      • Current / Back Issues
      • Features
      • Editorial
      • Business Corner
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Directories
      • Buyers Guide
      • Distributor Guide
      • Corporate Capabilities
      • Trade Associations
      • Add Your Company
    • Markets & Technologies
      • Adhesives and Sealants
      • Aerospace Coatings
      • Architectural Coatings
      • Automotive Coatings
      • Automotive Refinish
      • Business Operation
      • Color Trends & Forecast
      • Construction Chemicals
      • Corrosion Control
      • Industrial Coatings
      • Laboratory Equipment
      • Marine Coatings
      • Market Trends & Forecast
      • Powder Coatings
      • Production Equipment
      • Radcure Coatings
      • Special Purpose Coatings
      • Wood Coatings
      • "Green" Coatings
    • Raw Materials
      • Additives
      • Binders
      • Pigments
      • Solvents
    • World Reports
      • Africa Report
      • China Report
      • India/Asia Pacific Report
      • Europe Report
      • Latin America Report
      • Market Research
      • Russian Report
    • Top Companies
    • Online Exclusives
    • Glossary
    • Slideshows
    • Experts Opinions
    • Blog
    • eBook
    • Infographics
    • Videos
    • Podcasts
    • Whitepapers
    • Jobs
    • Microsites
      • Companies
      • White Papers/Tech Papers
      • Product Spec Sheets
      • Equipment
      • Literature/Brochures
      • Videos
    • Events
      • Industry Events
      • Live From Show Event
      • Webinars
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Breaking News

    Axalta Releases 2Q 2023 Results

    Robust pricing, focused execution and solid market demand drove margin and earnings growth.

    Axalta Releases 2Q 2023 Results
    08.02.23
    Axalta Coating Systems Ltd. announced its financial results for the second quarter ended June 30, 2023.

    Second quarter net sales increased 4.8% year-over-year to $1,293.9 million, driven by 6.8% higher average price mix and a 1.6% benefit resulting from the absence of the commercial agreement restructuring charge incurred in Q2 2022. Volumes decreased by 3.7% as market demand in Mobility Coatings and Refinish were more than offset by temporary operational delays impacting Axalta’s ability to meet customer demand from an ERP implementation in North America.

    Despite notable stabilization in June, warehouse management and slower shipping activities in the quarter resulted in an estimated negative 2%-3% year-over-year net sales impact and drove an elevated quarter-end sales backlog, most notably in Refinish.

    Mobility Coatings net sales were $437.9 million in Q2 2023, an increase of 15.5% year-over-year. Volume growth of 12.8% was driven by improved Light Vehicle and Commercial Vehicle production rates as well as customer wins. Price-mix increased 2.7% with positive contributions from both end-markets.

    Performance Coatings second quarter net sales were flat year-over-year at $856 million led by 8.5% better price-mix and a 2.4% benefit from the absence of the commercial agreement restructuring charge from Q2 2022. Volumes declined by 11.1% predominantly related to the sales impact of the ERP implementation and from a weaker Industrial market environment.

    Income from operations for Q2 2023 totaled $137.6 million versus $103.6 million in Q2 2022. Adjusted EBIT improved to $154.5 million from $150.6 million in Q2 2022 as price-cost trends were positive across all end-markets given the combined benefit of strong year-over-year pricing and variable cost deflation. Income from operations in the quarter was impacted negatively by higher year-over-year compensation expense and approximately $15 million of costs associated with consulting spend and the ERP implementation.

    “The quarter reflected strong underlying earnings and profitability improvement, particularly in Mobility Coatings where momentum is building,” said Chris Villavarayan, Axalta’s CEO and president. “I am particularly proud of how our teams rebounded from a broad and complex ERP implementation in May and delivered a solid quarter, including a sales performance for North America in June that was one of the strongest in our history. This launch was a crucial step towards achieving the margin improvement trajectory we want for Axalta.”
                             
    Axalta ended the second quarter with cash and cash equivalents of $517.6 million and total liquidity over $1 billion. Net debt to trailing twelve month adjusted EBITDA ratio (total net leverage ratio) was 3.6x at quarter-end versus 3.7x as of March 31, 2023 and the second quarter ended with an adjusted EBITDA to interest expense coverage ratio of 4.9x. Axalta voluntarily paid down an additional $75 million of principal on its term loan in the period, contributing to $150 million of combined structural debt pay downs over the past two quarters. Free cash flow totaled $99.0 million compared to a use of $13.5 million in Q2 2022.

    “Our cash conversion this quarter was a great achievement and reflects the team’s focus to reverse elevated working capital balances from year-end,” said Sean Lannon, Axalta's CFO. “As a result of better earnings and cash generation, our total net leverage ratio continued to improve; we expect to end the year close to 3.0x based on the current fiscal year outlook. Debt reduction is expected to remain our highest priority use of cash given attractive returns in the current interest rate environment, with opportunistic bolt-on M&A possible in the second half. We are actively exploring additional opportunities to reduce interest expense given improvements in capital markets activities.”
      Loading, Please Wait..
      Trending
      • AkzoNobel’s Acquisition Of Kansai Paint Decorative Coatings Prohibited In Three Africa Countries
      • LANXESS’ Papadourakis Retires, New Leadership For Americas Operations
      • Sherwin-Williams DesignHouse Releases Industrial Trend Report
      • Axalta’s Brian Berube To Retire
      • Nouryon Reports Full Year 2022 Results With Strong Revenue Growth
      Breaking News
      • GIT Names Kent Young to Board of Directors
      • SONGWON Names New Leader for Business Unit Coatings
      • Covestro LLC Recognized for Sustainability Efforts with Ohio EPA E3 Award
      • Fraunhofer IPA Creates Pigments from Crustaceans
      • BCF Crowned Best Trade Association of the Year
      View Breaking News >
      CURRENT ISSUE

      September 2023

      • Powder Coatings Market
      • Performance Enhancing Additives
      • The Role Of Kilowatt Hours In Measuring Mill Performance
      • View More >

      Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
      You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

      • About Us
      • Privacy Policy
      • Terms And Conditions
      • Contact Us

      follow us

      Subscribe
      Nutraceuticals World

      Latest Breaking News From Nutraceuticals World

      BAPP Publishes Lab Guidance Document on Lavender Oil
      Bartek Provides Update on Construction of World's Largest Malic, Fumaric Acid Facility
      Contract Manufacturer Acquires Powder Processing Facility
      Coatings World

      Latest Breaking News From Coatings World

      SONGWON Names New Leader for Business Unit Coatings
      Covestro LLC Recognized for Sustainability Efforts with Ohio EPA E3 Award
      Fraunhofer IPA Creates Pigments from Crustaceans
      Medical Product Outsourcing

      Latest Breaking News From Medical Product Outsourcing

      MGS Expands Acquires Winther Mould
      Hologic Partners with Know Your Lemons to Promote Breast Cancer Awareness
      Anumana ECG-AI LEF Cleared by FDA
      Contract Pharma

      Latest Breaking News From Contract Pharma

      Purdue, Ireland Alliance Fosters Opportunities in Pharmaceutical Manufacturing
      Amicus Therapeutics Wins FDA Approval for Pombiliti
      Amicus, Blackstone Enter $430M Strategic Financing Collaboration
      Beauty Packaging

      Latest Breaking News From Beauty Packaging

      DFS to Open World-Class Luxury Retail Destination in Hainan
      New Fragrance Brand Uses DNA of Extinct Flowers to Create Scents
      Dr. Barbara Sturm Skincare Brand Considering Sale
      Happi

      Latest Breaking News From Happi

      Arcaea Brings Extinct Flower Fragrances Back to Life Through Biology
      Niksic Named President & CEO of Tri-K Industries
      Board-Certified Dermatologist Creates Skincare Line for Tweens
      Ink World

      Latest Breaking News From Ink World

      Koenig & Bauer Factory in Radebeul Celebrates Its Jubilee
      Fraunhofer IPA Creates Pigments from Crustaceans
      Domino Printing Sciences Promotes Shane Burchett
      Label & Narrow Web

      Latest Breaking News From Label & Narrow Web

      All Printing Resources partners with MicroDynamics
      IST America to make Printing United debut
      Sun Chemical’s Glenn Webster receives NAPIM award
      Nonwovens Industry

      Latest Breaking News From Nonwovens Industry

      Baystar Starts Up Polyethylene Unit
      CVS Health to Donate up to One Million Period Products
      What You’re Reading on Nonwovens-Industry.com
      Orthopedic Design & Technology

      Latest Breaking News From Orthopedic Design & Technology

      University of Arizona Startup Develops Comprehensive Orthopedic Hardware Removal Toolkit
      ODT's Top 10 September Articles
      BellaSeno's Custom-Made Bone Products Now Available in Europe
      Printed Electronics Now

      Latest Breaking News From Printed Electronics Now

      CSEM Appoints Sara Girardi New CFO
      Fujifilm Completes Acquisition of Electronic Chemicals Business from Entegris
      Jas Worldwide Reduces Workers’ Walking Time by 40% with Zebra

      Copyright © 2023 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

      AD BLOCKER DETECTED

      Our website is made possible by displaying online advertisements to our visitors.
      Please consider supporting us by disabling your ad blocker.


      FREE SUBSCRIPTION Already a subscriber? Login