Global coatings giant Axalta has reported a boost in its sales, finishing the financial year more than four per cent up on last year to hit a quarterly record of USD $1.35 billion.
Net income increased by $52 million year-over-year to $113 million including the refinish division which had quarterly sales of USD$46 million up from $520 at the same time last year.
IN a statement to the US exchange, it said its adjusted net income improved by $50 million year-over-year to $127 million was driven by variable cost deflation and net sales growth.
Earnings before interest and taxes climbed to USD$291 million, a quarterly record, compared to $227 million in the prior year period.
Axalta President and CEO . Chris Villavarayan says Axalta continues to perform well.
“I am proud of our global team’s dedication and effort in achieving the highest quarterly net sales and Adjusted EBITDA in the company’s history,” he said
“As One Axalta, we remain committed to driving accelerated performance and unlocking the robust earnings potential of our business. With the solid second quarter performance and better visibility into the second half of the year, we are raising our full year 2024 Adjusted EBITDA, Adjust ed Diluted EPS and Free Cash Flow guidance.”
In the second quarter, the Performance Coatings segment that includes refinish had net sales were USD$887 million, up 4 per cent compared to the prior year period.
Refinish net sales grew five per cent year-over-year to USD $546 million driven by volume growth including contribution from the André Koch acquisition and new body shop wins. Industrial net sales increased 2 per cent year-over-year to USD $341 million driven by modest volume improvement.
Performance Coatings generated second quarter adjusted EBITDA of USD $223 million compared to $181 million in the prior year period, with EBITDA margins of 25.0 and 21.2 per cent, respectively. The increase in segment adjusted EBITDA and segment Adjusted EBITDA margin were driven by variable cost deflation, volume growth and cost reduction actions.