Axalta Coating Systems (axta) First Quarter 2021 Financial Results
In Europe, pandemic-related restrictions intensified in December and remained in effect for much of the
first quarter, impacting vehicle miles driven and therefore Refinish demand, which was generally
consistent with fourth quarter levels. Certain countries such as Germany extended restrictions a month
further than initially planned, with easing expected to begin late April, though very country specific in
terms of timelines with easing.
In Latin America, Mexico miles driven remain around 10% below normal, while Brazil was around even
with pre-COVID levels in Q1, perhaps weaker than the rate entering the quarter as case count for
COVID increased and restrictions in Brazil have come back.
In China and Asia Pacific, most countries continue to see traffic levels above pre-COVID levels through
the first quarter, as was the case in fourth quarter. In China, after a slower fourth quarter, and increased
activity starting in January, overall refinish volumes ended the quarter up fairly substantially for Axalta.
In the Industrial end-market, Axalta's first quarter results indicated broad based demand strength
through the period. All end-businesses as well as regions were either stable or increased over the prior
year in the period, with Energy Solutions and General Industrial coatings including powder coatings
both showing particular strength. Strength in U.S. home building and remodeling as well as global
automotive demand both served as continued tailwinds for Axalta's Industrial business.
Q1 Mobility Coatings Results
($ in millions)
Light Vehicle
Commercial Vehicle
Net Sales
Adjusted EBIT
% margin
$336
Q1 2020
Financial Performance
Sensitivity: Business Internal
1.5%
2021
Volume
Q1
279
77
356
39
11.0%
26
7.7%
Net Sales Variance
2020
260
76
336
3.1%
% Change
Incl. F/X Excl. F/X
7.2 %
5.4 %
2.2%
2.1 %
6.1 %
51.9%
4.6 %
Price/Mix
1.5%
FX
6.1%
$356
Q1 2021
Commentary
Net sales growth driven by improved price-mix, low
single digit volume growth, and FX benefit
6
■
I
.
Volume improvement driven by recovery in China Light
Vehicle and growth in North America Commercial
Vehicle; semiconductor chip shortage hindered further
upside for net sales
■
Positive price-mix contribution principally from Light
Vehicle
Modest FX tailwinds driven by the Euro and Chinese
Renminbi, partly offset by the Brazilian Real
Adjusted EBIT and margin expansion
Margin improvement of 330 bps, which excludes
impacts of the operational matter, driven by solid net
sales improvement inclusive of positive price-mix
benefit, coupled with ongoing structural cost and
productivity progress
Slide 7: Q1 Mobility Coatings Results
In April, Axalta rebranded its former Transportation Coatings segment as Mobility Coatings. This
change is to align our overall branding with a shift in strategic focus towards the broader mobility space,
which is rapidly transforming in fundamental ways and may look quite different over the coming decade
as shifts take place, such as adoption of new drive train technology and other new technology that this
migration enables for vehicles. Axalta is leading the way in the coatings space in terms of positioning
the company for shifting customer needs, and our new Mobility branding reflects this new alignment.
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