Axalta Coating Systems (AXTA) Fourth Quarter and Full Year 2020 Financial Results
Cost Structure Axalta again exceeded its targets in both temporary and structural cost savings during
Q4, ending the year with over $215 million in total in-year savings versus guidance of $195 million. This
included temporary savings of $150 million versus a target of $130 million. Axalta also delivered $13
million in planned savings associated with the restructuring announced in July. Axalta also exceeded its
full year target for cash flow actions, with realized total savings of $155 million versus the target of at
least $140 million. The cash actions taken include capex reductions from our initial 2020 guidance, as
well as other reductions in discretionary capital uses, deferrals of cash tax payments, and actions to
generate working capital savings. These combined actions were critical factors in helping offset to the
negative pandemic-driven volume effects seen in 2020.
Q4 Consolidated Results
(in million, except
per share data)
Performance
Transportation
Net Sales
Income from ops
Adjusted EBIT
% margin
Diluted EPS
Adjusted EPS
$1,098
Financial Performance
PROPRIETARY
2020
704
Sensitivity: Business Internal
04
1,075
163
2:05
19.1%
$ 0.30
Q4 Volume Price
2019
(0.29%
$
2019
730
369
1,098
109
174
15.8%
0.18
Net Sales Variance
% Change
Incl. FX Excl. FX
(3.5%
0.5%
(2.2%
49.5 %
18.4 %
66.7 %
38.1 %
FX Acq.
(2.215
$1,075
Q4
2020
5
Commentary
Continued Q4 net sales recovery across
most end-markets
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■
A
AXALTA
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Q4 2020 net sales included sequential
quarterly growth versus Q3 2020 across all
end-markets; Industrial and Light Vehicle
also increased versus prior year
Refinish demand impacted starting mid-Q4
by incremental pandemic-driven restrictions
primarily in EMEA and North America
FX tailwinds driven by the Euro and
Chinese Renminbi, partly offset by the
Brazilian Real
Strong Adjusted EBIT
Ongoing cost actions and variable cost
tailwinds produced substantial YOY
Adjusted EBIT growth in Q4 2020 despite
lingering effects from pandemic on volumes
Slide 5: Q4 Consolidated Results
Organic constant currency net sales decreased 4.0% overall for the fourth quarter, narrowing the year-
over-year headwind in volumes with continued sequential volume recovery despite ongoing pandemic-
driven impacts seen against the prior year comparison. Demand recovery exceeded expectations in
many areas, including substantial improvement in industrial production globally, and a solid recovery in
new vehicle builds most notably in the Americas and EMEA, with China already largely recovered in
aggregate earlier in the year.
AXALTA COATING SYSTEMS
Fourth quarter net sales, before FX impacts, decreased 4.0% year-over-year, including a 6.0%
decrease from Performance Coatings offset partly by a 0.4% increase from Transportation Coatings.
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