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Sep 30, 2021
Axalta Q3 2021 Earnings Report
Axalta's Q3 2021 financial results were released, demonstrating strong financial performance and operating execution despite persistent inflation and supply chain challenges, with net sales increasing by 6.0% year-over-year and earnings exceeding July guidance.
Key Takeaways
Axalta Coating Systems Ltd. announced its Q3 2021 financial results, with net sales increasing by 6.0% year-over-year. The company faced headwinds from cost inflation and supply chain constraints, particularly in Mobility Coatings, but strong performance in Performance Coatings helped offset these challenges. Axalta completed the acquisition of U-POL during the quarter.
Net sales increased 6.0% year-over-year, driven by substantial growth in Performance Coatings.
Income from operations was $124.7 million, with an adjusted EBIT of $146.0 million.
Diluted EPS was $0.30, and adjusted diluted EPS was $0.39.
Completed share repurchases of $90.1 million during Q3 and closed the acquisition of U-POL on September 15, 2021.
Forward Guidance
Axalta anticipates supportive demand and year-over-year growth within Performance Coatings, coupled with incremental pricing realization. In Mobility Coatings, Light Vehicle customer production constraints will remain fairly constant during Q4, resulting in broadly similar sequential volume and operating profit outcomes. The semiconductor chip shortage could continue through 2022 and inflation of around mid-teens for the full year is expected.
Positive Outlook
- Supportive demand and year-over-year growth within Performance Coatings
- Incremental pricing realization expected
- Active M&A pipeline
- Anticipate further share repurchase activity for the balance of the year
- Expect 2021 global light vehicle production to be relatively flat versus 2020
Challenges Ahead
- Light Vehicle customer production constraints will remain fairly constant during Q4
- Mobility Coatings will have broadly similar sequential volume and operating profit outcomes
- Semiconductor chip shortage could continue through 2022
Historical Earnings Impact
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