Published on February 4th 2022 in

Axalta reports 2021 sales up over 18% to $4.4 billion

The company reports improved operating results despite continued supply chain challenges. Persistent inflation was partially offset by continued pricing gains.

Axalta formally announced Q4 net sales increased by 5.8% year-on-year to $1,137.2 million. Net sales for the full year were $4,416.2 million, an increase of 18.2% year-on-year, citing solid recovery from 2020 pandemic volume impacts, partially offset by Mobility Coatings semiconductor constraints impacting customer production.

For the fourth quarter, adjusted earnings before interest and taxes (EBIT) was $121.0 million compared with $205.4 million in Q4 2020 resulting from substantial cost inflation impact in addition to Mobility volume headwinds. For the full year, Income from operations was $462.4 million versus $305.5 million in 2020. Adjusted EBIT was $623.2 million increased 16.1% versus 2020 despite substantial cost inflation.

Robert W. Bryant, Axalta’s President and CEO, commented, “Axalta’s fourth quarter results underscored strong continued operating execution during 2021. The business produced strong cash flow and managed well through a challenging environment marked by extensive cost inflation and supply chain headwinds, and also recent pandemic-driven labour constraints impacting Axalta and customer production sites. We continue to take active steps to offset these headwinds by implementing pricing and cost actions, though, exiting the year, a gap remains between cost inflation and realised offsets. As such, we are implementing additional price actions as required to offset cost increases across our enterprise.”
NCR Axalta's Robert Bryant

 

Performance Coatings Q4 net sales were $804.0 million, an increase of 14.2% year-on-year. Constant currency net sales saw 9.6% organic growth in the period as both end-markets provided strong contributions to a 5.0% segment volume increase and a 4.6% price and product mix benefit. M&A, which included a full quarter contribution from the U-POL acquisition that closed in mid-September 2021, added 6.0% to segment net sales in the period, while FX in Q4 was a 1.4% year-on-year headwind led by the Euro. The segment generated Adjusted EBIT of $99.7 million in the fourth quarter compared with $129.5 million in Q4 2020, with associated margins of 12.4% and 18.4%, respectively.

Refinish net sales in Q4 increased 12.8% year-on-year to $470.9 million, including a 4.5% year-over-year volume increase as stabilised global traffic supported stronger customer demand in the period. Despite the ongoing recovery, volumes remained below 2019 pre-pandemic levels by high single digits in the fourth quarter. Incremental traffic recovery over the next year coupled with ongoing new product rollouts is anticipated to drive continued growth in Refinish net sales. Average price and product mix increased low single digits in the period, including moderate mix headwinds, to counteract rising variable cost inflation. The U-POL acquisition contributed 8.1% to overall net sales growth for Refinish in the period.

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