Axalta Coating Systems (axta) First Quarter 2021 Financial Results
tailwinds. First quarter Adjusted EBIT excludes the impact of the $94 million operating charges
associated with the Mobility Coatings operational matter.
Q1 Performance Coatings Results
($ in millions)
Refinish
Industrial
Net Sales
Adjusted EBIT
% margin
$648
Q1 2020
Financial Performance
6.2%
2021
2020
368
280
648
79
12.3%
Net Sales Variance
Volume
Sensitivity: Business Internal
Q1
399
308
707
117
16.6%
(1.2)%
Price/Mix
%
Incl. F/X
8.5 %
10.1%
9.2 %
47.6%
4.2%
FX
Excl. F/X
3.7 %
6.7 %
5.0 %
9.2%
$707
Q1 2021
Commentary
Stronger net sales driven by both Refinish and
Industrial volume improvement
■
.
▪
4
YOY volume growth driven by continued Industrial
strength across most global markets, recovery in
Refinish notably in China versus prior year pandemic
effects, partly tempered by U.S. severe weather supply
chain impacts and ongoing pandemic restrictions
Modest price-mix headwinds in select Industrial
businesses and mix in Refinish
FX tailwinds driven by the Euro and Chinese Renminbi,
partly offset by Brazilian Real
Improved Adjusted EBIT and margins
Continued cost productivity benefits and volume
recovery drove impressive 430 bps Adjusted EBIT
margin improvement with solid contribution from both
end-markets
Slide 5: Q1 Performance Coatings Results
Performance Coatings Q1 net sales increased 9.2% year-over-year (increased 5.0% excluding a 4.2%
FX tailwind). The result was driven principally by 6.2% higher volumes offset partly by a 1.2% decrease
in average price-mix.
AXALTA
Refinish reported an 8.5% net sales increase (3.7% ex-FX), driven by improved volume primarily from
China which saw pandemic impacts in the prior year quarter. While overall volumes in EMEA were
stable, year-over-year volumes for Refinish coatings remained a headwind in western countries due to
the continued impact on vehicle miles travelled from COVID-19 related restrictions and lockdowns.
Price-mix in the period was a modest drag, including mix headwinds from geography, customer and
product differences, offset partly by positive price versus the year ago period.
Axalta continued to drive new product innovation in Refinish in the first quarter, continuing the launch of
industry leading product systems. In Europe, Axalta launched two new Nason clearcoats for the value
segment, while the rollout of Axalta's premium "fast cure" clearcoat also continued across the region. In
Asia Pacific, growth of Axalta's new Spies Hecker waterborne clearcoat continued, showcasing the first
premium Refinish clearcoat based on waterborne technology.
Industrial net sales increased 10.1% year-over-year (6.7% ex-FX), driven largely by strong mid-single
digit volume growth, with average price-mix a modest offsetting headwind. Demand trends in the end
businesses served by Industrial remained supportive, with ongoing recovery seen for the third straight
quarter for industrial coatings globally. All regions and end-businesses in Industrial saw positive volume
and net sales comparisons in the quarter, with particular strength in Energy Solutions, powder coatings
and Wood coatings. Axalta has also seen ongoing tailwinds in markets linked to North American
housing and remodeling, including Wood and Coil. In Europe, Axalta's business has also recovered
well across most markets, while in China all Industrial businesses appear to have recovered fromView entire presentation