• 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
    Aerospace Coatings Market

    Energy Curing and Coil Coatings

    Lab/Testing Equipment Update

    High Performance and Special Effect Pigments

    The Wood Coatings Market
    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
    BASF Coatings Looks to Sell Coatings Business: Bloomberg News

    Two New Directors Add Expertise to ChemQuest Team

    Nor-Shipping Reaction from AkzoNobel

    BASF Starts Up New Plant for Hexamethylenediamine in Chalampé, France

    Pacific Coatings Show 2025 Issues Call for Papers
    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

    Nor-Shipping Reaction from AkzoNobel

    Linseed Paint Expert Launches Online AIA Training Course

    The Powder Coating Institute Announces 2025 Hall of Fame Inductees

    Powder Coating Institute Announces Executive Director Kevin Coursin’s Retirement

    Behr Unveils Second Annual Commercial Color Forecast
    Additives
    Binders
    Pigments
    Solvents

    Münzing Expands U.S. Operations with New Production Facility in South Carolina

    Aditya Birla Acquires Cargill Specialty Chemical Facility in Georgia

    Evonik Coating Additives Launches TEGO Foamex 8051

    BASF Introduces Reactive Polyethylene Glycol Pluriol A 2400 I in Europe

    International Carbon Black Association Releases Industry-Average Product Carbon Footprint
    Company Capabilities
    Buyers Guide
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    Vibrantz Technologies

    Shepherd Color Company, The

    WAB US Corp

    Gehring Montgomery Inc

    Evonik Corporation
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    Coatings Expo Vietnam 2025

    West Africa Coatings Show

    ABRAFATI SHOW 2025

    Paint Bangladesh 2025

    Paint Expo Eurasia
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    Vibrantz Technologies

    Shepherd Color Company, The

    WAB US Corp

    Gehring Montgomery Inc

    Evonik Corporation
    • 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..
      Breaking News
      • BASF Coatings Looks to Sell Coatings Business: Bloomberg News
      • Two New Directors Add Expertise to ChemQuest Team
      • Nor-Shipping Reaction from AkzoNobel
      • BASF Starts Up New Plant for Hexamethylenediamine in Chalampé, France
      • Pacific Coatings Show 2025 Issues Call for Papers
      View Breaking News >
      CURRENT ISSUE

      May/June 2025

      • Aerospace Coatings Market
      • Energy Curing and Coil Coatings
      • Lab/Testing Equipment Update
      • High Performance and Special Effect Pigments
      • View More >