Axalta Coating Systems (AXTA) Reports In-Line Q2 EPS, Revenues Beat
- Tech megacaps, chipmakers set to drag Nasdaq lower at open
- EV Company Polestar To Go Public Via $20 Billion SPAC Deal
- Amazon (AMZN) Price Target Lowered at Morgan Stanley Amid Rising Logistics Workforce Costs, Analyst Expects Stock to be Range Bound in Near Term
- Brent oil nears $80 a barrel on tight supply
- Some Apple (AAPL) and Tesla (TSLA) Suppliers Suspend Production in China For a Few Days
News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.
Axalta Coating Systems (NYSE: AXTA) reported Q2 EPS of $0.48, in-line with the analyst estimate of $0.48. Revenue for the quarter came in at $1.13 billion versus the consensus estimate of $1.08 billion.
Robert W. Bryant, Axalta's President and CEO, commented, "Axalta's second quarter represented a strong rebound from the pandemic-impacted second quarter last year and was slightly better than our expectation set for the period communicated in our last earnings release. The company saw notable improvement across all businesses from the prior year period, including continued strong growth in Industrial coatings and solid sequential recovery in Refinish. While Mobility Coatings rebounded well from the prior year, the business has and will continue to see impact from the semiconductor chip shortages, primarily impacting Light Vehicle production globally."
"Our team at Axalta remains focused on disciplined capital allocation. Following the acquisition in China announced in March of Anhui Shengran within our Energy Solutions business, we were very pleased to sign a definitive agreement to acquire U-POL in July," Mr. Bryant noted. "This acquisition, which is expected to close in late Q3 or early Q4 of 2021, represents a clear and compelling strategic fit with our Refinish business. We believe that the U-POL business will generate strong returns and will also accelerate growth for our existing Refinish businesses given the expected commercial synergies in product offerings, distribution channels, and customer opportunities. We are also excited to be bringing onboard a terrific management team that has proven an ability to grow the business substantially during its tenure."
Mr. Bryant continued, "We remain focused on achieving offsets to the substantial variable cost inflation headwinds that accelerated across the business globally. Our strong price and product mix result showcases the ability of our people and our business to react quickly to shifting input cost conditions. Given that the magnitude of such inflation headwinds has continued to increase through the period, we will continue to pursue offsets via price as well as productivity actions in order to maintain Axalta\'s margins and anticipate this process to continue through the remainder of the year. Axalta's ability to adapt to volatile conditions remains a core strength of our business, witnessed last year with the pandemic volume impacts and this year as we adjust dynamically to rising input costs and tight supply availability."
Mr. Bryant concluded, "We have continued this year to focus relentlessly on innovating and introducing new products. Among many other examples, our progress in the second quarter included the launch of the Daisy Wheel 3.0, an upgrade of the first fully automated color dosing system in the market, launched with a range of our premium refinish brands in EMEA. We also introduced an enhanced version of the Durapon 70 line of 40-year exterior weathering coil products, which are a sustainable, PFOA-free upgrade suitable for roofing and other end uses. These innovations are illustrations of the myriad of sustainable new product activities that surround our organic growth strategy, and we remain very excited about our pipeline looking forward."
Axalta Coating Systems sees FY2021 EPS of $1.85-$2.00, versus the consensus of $2.06.
For earnings history and earnings-related data on Axalta Coating Systems (AXTA) click here.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- MGM Resorts (MGM) Acquires Operations of The Cosmopolitan of Las Vegas for $1.625B in Cash
- Mercury Systems (MRCY) Acquires Avalex Technologies
- National CineMedia (NCMI) Appoints Ronnie Y. Ng as CFO
Create E-mail Alert Related CategoriesEarnings, Guidance
Related EntitiesEarnings, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!