Description

Inside Axalta’s Cost Reset: Procurement, Footprint Optimization, and a New Earnings Baseline!

Axalta Coating Systems reported a fourth quarter and full year marked by strong margin discipline, record cash generation, and continued exposure to macro-driven volume pressure across several end markets. The company delivered fourth quarter net sales of approximately $1.3 billion with growth in three of four regions, offset by weakness in North America tied largely to distributor destocking and softer industrial demand. Adjusted EBITDA of $272 million translated into a margin of 21.5 percent, extending a multi-quarter trend of margins at or above internal targets despite lower volumes. Adjusted diluted earnings per share of $0.59 was broadly flat year over year, reflecting lower operating income that was partially offset by reduced interest expense and a lower share count. Reported net income declined materially due to higher tax expense and transaction-related costs associated with the proposed combination with AkzoNobel.