Axalta Coating Systems (axta) First Quarter 2021 Financial Results
Mobility Coatings net sales increased 6.1% year-over-year in the quarter including a 1.5% currency
tailwind driven by the Euro and Chinese Renminbi, partly offset by the Brazilian Real. Net sales were
driven by 3.1% higher average price-mix and a 1.5% increase in volume.
Light Vehicle first quarter net sales increased 7.2% (5.4% ex-FX). Volume increased low single digits,
which was somewhat behind the global rate of production in the period due to specific customer and
geographic exposures for Axalta. Average selling prices increased mid-single digits in the period,
largely reflecting mix effects as opposed to pricing in the quarter.
Commercial Vehicle first quarter net sales increased 2.2% before FX headwinds of 0.1%. This increase
was driven by stronger but still uneven global truck production as well as solid production of certain
other vehicle types served. Axalta saw volume increases in North America truck around in-line with
industry pacing, while EMEA remained lower year-over-year aligned with the broader regional truck
market. Price-mix for Commercial Vehicle was essentially neutral in the quarter versus the prior year
period.
Axalta's Mobility Coatings business continued to innovate during Q1. In the area of Core Mobility,
Axalta continued the launch of its Lumeera 5220 clearcoat, providing best-in-class appearance and
performance. The rollout also continued for the next generation Hydrotopcoat formulated for premium
appearance and workability. In support of Advanced Mobility, Axalta expanded partnerships with both
customers and applicator suppliers to drive the development of Digital Paint Application which we
believe will offer improved productivity for unique color combinations and customization. Finally, Axalta
scientists and engineers continued the optimization of Axalta's Radar Transmission Simulator (ARTS);
an exclusive radar modeling software. With this capability, Axalta is leading the industry in support of
Automotive Radar/LIDAR and Advanced Driver Assistance Systems (ADAS).
Mobility Coatings reported first quarter Adjusted EBIT of $39 million, well above the $26 million profit
reported in Q1 2020, excluding the impact of the operational matter and associated charges in the
quarter. The Adjusted EBIT margin for the segment increased markedly from 7.7% in Q1 2020 to
11.0% in the first quarter, driven largely by strong price-mix contribution and ongoing cost reduction
progress.
Sensitivity: Business Internal
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