Loading...
•
Sep 30, 2022
Axalta Q3 2022 Earnings Report
Axalta's Q3 2022 earnings were released, showing results within the guidance range, driven by strong pricing and volume recovery, which offset regional headwinds and inflationary pressures.
Key Takeaways
Axalta Coating Systems reported a 13.8% increase in net sales year-over-year, driven by strong pricing and volume growth. The company's earnings were within the stated guidance range, despite currency and inflationary headwinds. Price increases offset variable cost inflation for the first time since mid-2021.
Net sales increased 13.8% year-over-year, with a 20.1% increase excluding foreign exchange impacts.
Price-mix growth was 9.7%, with contributions from every end-market and a sequential increase of 2.5%.
Volume increased 8.8%, driven by market recovery in Refinish and Mobility.
Diluted EPS was $0.28, while adjusted diluted EPS was $0.39, flat compared to Q3 2021.
Axalta
Axalta
Forward Guidance
Axalta anticipates net sales growth of 6-8% in Q4 2022, including a negative 7% foreign currency impact. Adjusted EBIT is expected to be $120-145 million, with adjusted diluted EPS of $0.31-0.39.
Positive Outlook
- Anticipate mid single-digit volume growth
- Expect nearly double-digit price-mix growth
- Resiliency of Refinish end-market
- Deferred demand in both Commercial Vehicle and Light Vehicle
- Company-wide pricing momentum
Challenges Ahead
- Approximately (7%) foreign currency impact on net sales
- Expect raw material inflation in the high-teens versus Q4 2021
- Flat-to-down modestly raw material inflation vs. Q3 2022
- Slower regional economic activity in select geographies
- Substantial FX headwinds and minimal change in the sequential quarter-over-quarter cost environment