By Jeff Sanford
Toronto, Ontario — August 5, 2015 — Axalta Coating Systems has announced its financial results for the second quarter today. Net sales were $1.1 billion in Q2 of 2015. This is an increase of 8.2 percent increase over the same period last year, but excludes negative foreign currency translations. Taking the conversions into account sales decreased 2.9 percent on an “as-reported” basis.
According to the company the advance in net sales was driven by a 4.8 percent increase in the overall volume of sales. The growth came from all the regions the company works in. There was particularly strong growth (double-digit) from the Asia Pacific region. Axalta notes the strong growth there reflects the ongoing ramp-up in China in terms of new vehicle builds. The burgeoning auto industry in that country is creating new business for Axalta, and that’s resulting in better numbers. Higher average selling prices in the quarter added 3.4 percent to net sales. But unfavorable foreign currency translation reduced net sales by 11.1 percent.
Refinish net sales increased 10.0 percent on a constant currency basis (but decreased 2.3 percent as-reported). The Performance Coatings segment generated an “adjusted” EBITDA of $162.1 million. This is an increase of 18.6 percent year-over-year. The positive business is a reflection of increasing volumes and an ability to raise prices. The increase in volume and price was offset by foreign currency conversions and operating expenses that were moderately higher.
“We are very pleased with our second quarter results, which beat our expectations… In spite of a challenging economic backdrop in certain countries and ongoing volatility in foreign currency, Axalta’s key end-markets remain fundamentally stable and supportive in most areas,” says Charles W. Shaver, Axalta’s Chairman and Chief Executive Officer. “Given our solid first half results, we continue to expect to meet our financial goals for 2015 and have raised the low-end of our Adjusted EBITDA guidance as a reflection of this performance to date.”
For more information, please visit axalta.ca.
