Glen Mills, Pennsylvania., September 20, 2021 / PRNewswire / -Axalta Coating Systems Ltd. (NYSE: AXTA) (“Axalta”), the global leader in coatings, provides financial guidance for the third quarter and 2021 in light of the supply chain issues facing mobility customers. Provided the latest information on. We have known and continue to experience and continue to impact commodity inflation and supply chain and logistics constraints affecting the coating industry. Axalta expects net sales to decline in approximately the third quarter. $ 40 million EBIT adjusted to the volume level assumed in the forecasts previously communicated $ 130-140 million benefiting from a strong business mix, ongoing price increases and continued cost action Previous Q3 Adjusted EBIT forecast (shown at around 20% of target annual) $ 138 million In the middle of the fork. Throughout 2021, Axalta will withdraw previously disclosed guidance due to uncertainties associated with these factors and the expected financial impact of the fourth quarter.
Since Axalta provided forecasts for the third quarter and year 2021 July 26, 2021Net sales continue to be affected by customer supply chain disruptions, particularly in the light commercial vehicle end-market, where shortages of semiconductor chips and other supplies continue to be almost unchanged. . Industry forecasts for light-duty vehicle production require this turbulence to continue through 2022, with Axalta impacting global production for the full year of 2021 compared to the previous assumption of 7 million units. The total is estimated at around 11 million units. In addition, recent weather events in the Southeastern United States and persistent global raw material supply and logistics constraints have led to continued cost inflation and supply constraints that exceed those expected in the guidance provided previously. It happened.
Despite the shortage of components for mobility customers and the impact of supply chain challenges, the potential demand for performance coatings in the end market remains strong. Inventories in customer channels are below normal levels, but Axalta expects to support a recovery in net sales as impacts from COVID-19 and supply chain dynamics subside over time. .. Axalta expects net sales in the final repair and industrial markets to remain in line with previously disclosed guidance. On a consolidated basis, Axalta has achieved both net sales and profits since 2022 by focusing on strong global demand supported by aggressive growth initiatives and by dealing with inflationary pressures from rising prices. We believe this will support a continued recovery.
Precautions Regarding Future Perspectives
This press release may contain statements regarding certain forward-looking statements regarding Axalta and its subsidiaries within the meaning of the Private Securities Litigation Reform Act of 1995. This includes the impact of COVID-19 on Axalta’s business and financial results. All of these statements are based on management’s expectations, as well as on estimates and assumptions made by management, and I believe they are reasonable, but are inherently uncertain. These statements include, without limitation, risks and uncertainties which include, but are not limited to, economic, competitive, government and technical factors beyond Axalta’s control, including the impact of COVID-19 , business and industry. , Strategic, financial activity, or activity that may have real consequences. differ greatly. The impact and duration of COVID-19 on our business and our business is uncertain. Factors that influence our business and their impact on our business include the duration and scope of COVID-19, the scope of containment and mitigation measures imposed or recommended, and the general economic impact of COVID-19. included. For more information on the potential factors that could affect Axalta’s financial results, see Axalta’s latest annual Form 10-K, “Forecast Statements”, “Risk Factors” and “Risk Factors” . See management’s review and analysis of financial condition and performance. , And other documents submitted or submitted to the United States Securities and Exchange Commission. Axalta assumes no obligation to update or revise any forward-looking statement contained in this document as a result of new information, future events, etc.
Non-GAAP financial indicators
This press release contains financial information which is not presented in accordance with generally accepted accounting principles. united states of america (“GAAP”), including Adjusted EBIT. Management uses non-GAAP financial measures to perform financial and performance analysis. This is because non-GAAP financial measures help assess the underlying trends in our business. The use of the term Adjusted EBIT may differ from other terms in the industry. Adjusted EBIT should not be viewed as a replacement for derived performance indicators in accordance with GAAP as an indicator of revenue. Adjusted EBIT has important limitations as an analytical tool and should be viewed in conjunction with results reported under GAAP. Axalta provides adjustments to adjusted non-GAAP estimates of EBIT based on future prospects, as the information necessary to calculate meaningful and accurate estimates for adjusting items is not available without undue effort. plug. For example, these adjustments include the effects of foreign exchange gains and losses, abnormal or non-recurring gains and losses, and individual taxable events. These items cannot be estimated or predicted and may have a substantial and unpredictable impact on US GAAP results.
About the Axalta Coating System
Axalta is a global leader in the coating industry, providing our customers with innovative, colorful, beautiful and durable coating solutions. From light vehicles, commercial vehicles and repair applications to electric motors, building facades and other industrial applications, our coatings are designed to prevent corrosion, increase productivity and increase durability. With over 150 years of experience in the coatings industry, Axalta’s global team uses the best coatings, application systems and technologies to help more than 100,000 customers in over 130 countries serve better every day. . I keep searching. For more information, please visit: axalta.com Follow @axalta on Twitter.
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Axalta Updates Financial Guidance to Reflect Continuing Impact of Customer Supply Chain Shortages, Raw Material and Logistics Constraints | Around the Web-Pennsylvania
Source Link Axalta Updates Financial Guidance to Reflect Continuing Impact of Customer Supply Chain Shortages, Raw Material and Logistics Constraints | Around the Web-Pennsylvania