Axalta Coating Systems Ltd (AXTA) Reports 5.7% Increase in Q3 2023 Net Sales
Axalta Coating Systems Ltd (NYSE:AXTA) reported a 5.7% increase in net sales to $1.3 billion in Q3 2023.
Operating income increased by $40 million year-over-year to $163 million.
Net income attributable to controlling interests was $73 million, up from $62 million in the same period last year.
Axalta repurchased approximately 1.8 million common shares during the third quarter for a total consideration of $50.0 million.
On November 1, 2023, Axalta Coating Systems Ltd (NYSE:AXTA), a leading global coatings company, announced its financial results for the third quarter ended September 30, 2023. The company reported a 5.7% year-over-year increase in net sales to $1.3 billion. Operating income rose by $40 million year-over-year to $163 million, and net income attributable to controlling interests was $73 million, up from $62 million in the same period last year.
Financial Performance
The increase in net sales was primarily driven by a 6.3% higher average price-mix and a modest foreign currency translation benefit of 2.2%. However, volumes declined by 2.8% as strong growth in Mobility Coatings was offset by declines in Performance Coatings. Operating margin improved by 250 basis points compared to the prior year period, and adjusted EBIT margin improved by 240 basis points year-over-year.
Share Repurchase and Acquisition
Axalta repurchased approximately 1.8 million common shares during the third quarter for a total consideration of $50.0 million at an average price of $27.79 per share. Additionally, Axalta acquired Andre Koch AG, a long-term Refinish distribution partner in Switzerland, subsequent to the quarter close.
CEO Commentary
This was a solid quarter for Axalta, said Chris Villavarayan, Axaltas CEO and President. We came together as one global team and executed very well. I am extremely proud of the teams efforts and earnings results for the quarter, but I want to reiterate that Axaltas transformation journey is just beginning. We have made investments into the business this year, which will begin to unlock the earnings power of the enterprise.
Outlook
For Q4 and FY2023, Axalta expects net sales to increase by a low single-digit percentage and a mid single-digit percentage, respectively. The company also anticipates adjusted EBIT of approximately $180 million for Q4 2023 and approximately $670 million for FY 2023.
Explore the complete 8-K earnings release (here) from Axalta Coating Systems Ltd for further details.
This article first appeared on GuruFocus.
