Axalta Coating Systems (AXTA) Fourth Quarter and Full Year 2020 Financial Results
Lower volume of 3.8% for the quarter was driven by pressure led by North America, with more
moderate impact in EMEA and Asia Pacific, and partially offset by low single digit increases in Latin
America.
Price-mix contribution was essentially neutral in the aggregate (down 0.2%) with Light Vehicle slightly
positive overall. As with prior recent quarters, the principal driver of the metric during the period has
been product mix differences, largely within Performance Coatings, as pricing has remained positive.
FX translation was a modest tailwind of 1.8%, driven by the stronger Euro and Chinese Renminbi,
offset by weakness notably for the Brazilian Real.
Fourth quarter Adjusted EBIT was $205 million versus $174 million in the prior year quarter, a strong
result taken in the context of lower volumes year-over-year. This was driven principally by operating
cost reductions as well as lower variable input costs and modest FX tailwinds, offset partly by the drop-
through impact of volume reductions.
Q4 Performance Coatings Results
($ in million)
Refinish
Industrial
Net Sales
Adjusted EBIT
% margin
$730
PROPRIETARY
Financial Performance
2020
Sensitivity: Business Internal
418
286
704
130
04
18.4%
(0.3%
04 Volume Price
2019
2019
466
264
730
118
16.2%
Net Sales Variance
% Change
Incl. FX Excl. FX
(10.4% (13.0%
6.2 %
(6.0%
2.5%
(3.5%
9.7%
FX Acq.
(3.51%
$704
Q4
2020
6
Commentary
Net sales continue to improve each quarter
sequentially since Q2 low
I
I
I
AXALTA
i
November and December restrictions
impact on miles driven providing headwind
to Refinish volume recovery
Industrial volumes improved versus prior
year on enhanced market conditions
globally; Q4 2020 net sales increased YOY
across all Industrial businesses
FX tailwinds driven by the Euro and
Chinese Renminbi, partly offset by the
Brazilian Real
Improved Adjusted EBIT and margins
despite ongoing volume pressure
Positive earnings comparisons aided by
ongoing cost actions and variable cost
tailwinds to offset volume pressures;
Adjusted EBIT margin up 220 bps
Slide 6: Q4 Performance Coatings Results
Performance Coatings Q4 net sales decreased 6.0% year-over-year excluding a 2.5% FX tailwind. The
result was driven principally by 5.8% lower volumes and a 0.3% decrease in average price-mix.
4
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