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Dec 31, 2021
Axalta Q4 2021 Earnings Report
Axalta released fourth quarter and full year 2021 results.
Key Takeaways
Axalta Coating Systems reported a net sales increase of 5.8% year-over-year, driven by Performance Coatings growth, offset by OEM production constraints in Mobility Coatings. The company managed through cost inflation and supply chain headwinds, implementing pricing and cost actions to offset these challenges.
Net sales increased by 5.8% year-over-year, reaching $1,137.2 million.
Income from operations was $94.7 million, compared to $163.2 million in Q4 2020.
Diluted EPS was $0.23, versus $0.30 in Q4 2020.
Cash flow from operations reached $268.6 million, slightly below the $278.4 million reported in Q4 2020.
Axalta
Axalta
Forward Guidance
Axalta anticipates continued solid end-market demand and potential stabilized raw material cost inflation after the first quarter of 2022.
Positive Outlook
- Continued Refinish recovery
- Continued robust organic growth within Industrial Coatings
- Global auto production expected to improve
- Mobility Coatings growth solidly ahead of global production levels
- Price-mix anticipated to offset cumulative raw material inflation within 2022
Challenges Ahead
- Modest FX headwinds expected driven largely by the Euro and Real
- Raw material inflation expected at low double digits
- Peak inflation is expected to occur in Q1 2022
- Continued inflationary pressure which is expected to moderate in 2H 2022
- Expected raw material inflation of ~25-27% versus Q1 2021