Axalta Expands Industrial Market Range, Explores New Markets

Axalta expands industrial market range

On November 6, 2017, Axalta Coating Systems (AXTA) announced that it will be expanding its portfolio in the industrial market by including Tufcote 3.5 HH silicone alkyd direct-to-metal topcoats. Axalta claims that this will be a cost-effective and high temperature-resistant.

These coats can be used in boilers and mufflers that are exposed to high temperatures. It should also be noted that Tufcote 3.5 HH coating meets the National Rule Regulatory requirements.

Axalta Expands Industrial Market Range, Explores New Markets

 

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Axalta Product Director of North America Industrial John Corry stated: “We are thrilled to add new high-heat products to Axalta’s industrial economy line. The Tufcote 3.5 HH series is an ideal choice for customers who need an easy-to-apply coating that offers excellent durability, good resistance to cracking, and abrasion protection for exterior surfaces that yield temperatures up to 1200°F.”

In another development, Axalta will exhibit Nap-Gard, which is catered to oil and gas industry, and Abcite, for water pipelines in the Middle East and North Africa, on November 13-16 at the Abu-Dhabi International Petroleum exhibition.

Axalta’s stock performance

AXTA stock has remained low for a week now, after previously rising on the news of a potential merger with AkzoNobel. AXTA closed at $31.98, or 2.6% lower, for the week ended November 10, 2017. Although the stock declined, AXTA traded 5.1% above its 100-day moving average price of $30.98.

On a YTD (year-to-date) basis, AXTA has returned 17.6%, while peers RPM International (RPM), Sherwin-Williams (SHW), and PPG Industries have returned -4.6%, 44.9%, and 21.0% respectively. AXTA’s relative strength index score of 58 indicates that the stock is neither oversold nor overbought.

Notably, AXTA has underperformed the iShares US Basic Materials ETF (IYM), which has fallen 1.3% YTD. IYM had nearly 1.1% of its portfolio in AXTA as of November 10.

Axalta announces release of Tufcote LV HG polyurethane products for the economy industrial market

 

HOUSTON--()--Axalta Coating Systems (NYSE: AXTA), a leading global supplier of liquid and powder coatings, expanded its Tufcote brand with the addition of a polyurethane topcoat. The Tufcote LV HG Polyurethane Topcoat is a two-component economy coating designed to provide a high gloss and an extremely durable solvent- and chemical-resistant finish for industrial applications.

“Industrial maintenance structures are constructed to last and need a tough, durable finish to complement its sturdy build”

The new polyurethane topcoats are formulated with fast-drying capabilities for a quicker re-coat time, which may contribute to improving the efficiency in application over time. Tufcote LV HG Polyurethane Topcoats are formulated at a volatile organic compound (VOC) level of 0.8 lbs/gal (100 g/l), making it an environmentally responsible choice. Its formulation also complies with requirements of SCAQMD Rule 1113 for industrial maintenance coatings.

“Industrial maintenance structures are constructed to last and need a tough, durable finish to complement its sturdy build,” said John Corry, Axalta Product Director, Industrial North America. “We are excited to add the Tufcote LV HG Polyurethane Topcoats to our growing line of Tufcote economy products to help combat the impact of harsh environments and expand the product technologies available to our customers.”

Tufcote LV HG Polyurethane Topcoats can be applied by brush, roller, or spray application for use on properly prepared machinery, structural steel, and other industrial applications. When mixed with Tufcote MX-5599 Polyurethane Activator, the coating offers exceptional durability and high-performance protection on ferrous metals, wood, concrete, and painted surfaces.

To learn more about Axalta’s Tufcote products, please visit axalta.us/industrial.

 

Axalta Schedules Third Quarter 2017 Results Conference Call

PHILADELPHIA--(BUSINESS WIRE)--Axalta Coating Systems Ltd. (NYSE: AXTA) will host a conference call to review its third quarter 2017 financial results at 8:00 a.m. ET on Thursday, October 26, 2017. Charles W. Shaver, Chairman and Chief Executive Officer, and Robert W. Bryant, Executive Vice President and Chief Financial Officer, will review the company's financial performance for the period. A live webcast of the conference call will be available online atwww.axalta.com/investorcall.

The U.S. dial-in phone number for the conference call is 877-407-0784 and the international dial-in number is +1-201-689-8560.

For those unable to participate, a replay of the call will be available through November 2, 2017. The U.S. replay dial-in number is 844-512-2921 and the international replay dial-in number is +1-412-317-6671. The replay passcode is 1367 2189.

Axalta Coating Systems to Launch First Shatter-Proof Glass Coating

PHILADELPHIA--(BUSINESS WIRE)--Axalta Coating Systems (NYSE: AXTA) has introduced the first clear, water-based coating that provides an invisible membrane to glass surfaces and is designed to keep potentially dangerous fragments in place, should the glass break or shatter. The technology was developed by the Glass Coatings Division of Spencer Coatings Group, which was acquired by Axalta in June of this year.

The shatter-proof coating has already completed successful trials with the largest pharmaceutical glass bottle maker and the largest cosmetics bottle maker in the world, who were attracted to the potential of protecting glass containers of hazardous chemicals, blood plasma, and other fluids in high risk environments. In addition to these keys uses, the innovative coating has the potential to protect a multitude of glass substrates for products such as expensive liquid fragrances, perfumes, and beverages.

“We approach innovation with a true vision and purpose, whether that be benefiting our customers’ business or impacting the world around us. This ground-breaking technology is the first of its kind, and will enhance the quality of items we come across in our everyday life,” said Michael Cash, President, Industrial Coatings. “We look forward to getting this versatile product out into the market as an example of the functional role that coatings can play to improve our lives.”

Axalta Updates Financial Guidance and Highlights Recent Effects on Its Business

PHILADELPHIA--(BUSINESS WIRE)--Axalta Coating Systems Ltd. (NYSE: AXTA) (“Axalta”), a leading global coatings provider, has updated its third quarter and 2017 full year financial guidance to incorporate several factors expected to impact results. These include the expected impact of the recent natural disasters, distributor working capital adjustments in Axalta’s Performance Coatings segment, and the projected widening of the gap between raw material input costs and offsetting near-term customer price increases. Axalta now expects third quarter and 2017 full year Adjusted EBITDA to be in a range of $205-$215 million and $870-$900 million, respectively. Net sales for third quarter 2017 are expected to be between $1.08-$1.10 billion, while full year net sales are expected to grow between 6%-7%.

Charles W. Shaver, Axalta’s Chairman and CEO, commented that “We have seen and expect moderate effects on our business from recent hurricanes and the earthquake in Mexico, largely in terms of lost near-term volume opportunity. We believe that much of this impact will be made up during the course of 2018, and hence see these impacts as largely transitory.” Mr. Shaver continued, “After recent discussions with certain Performance Coatings distribution partners, we are incorporating the expected impact of a focused reduction in distributor working capital levels for the balance of the year. Following this adjustment, we expect volumes for the segment to return to more normal levels during the fourth quarter.” Mr. Shaver further commented that “We also continue to see impacts across coatings markets from tight supply conditions for raw material inputs, and given time lags to recovery via pricing adjustments, we have factored in a wider price-cost gap into our 2017 outlook. We expect to close the gap caused by raw material price pressure over the coming year.”

Robert W. Bryant, EVP and CFO, added, “Although we never like to see business impacts of these sorts, we believe the majority of the effects we have described are largely one-time in nature, and much of these are expected to be recovered through the course of 2018. We continue to have confidence in the underlying business climate, and note that the economics in each of our end-markets remain stable as we look forward. We are also revisiting and will increase our plans for cost reduction and productivity measures that should incrementally benefit Axalta in 2018.”

Cautionary Statement Concerning Forward-Looking Statements

This release may contain certain forward-looking statements regarding Axalta and its subsidiaries including those relating to the impact of recent natural disasters, distributor working capital adjustments, projected price-cost gap and cost reduction and productivity measures, as well as our third quarter and full year 2017 outlook, including net sales, net sales growth and Adjusted EBITDA. All of these statements are based on management’s expectations as well as estimates and assumptions prepared by management that, although they believe to be reasonable, are inherently uncertain. These statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of Axalta’s control that may cause its business, industry, strategy, financing activities or actual results to differ materially. More information on potential factors that could affect Axalta's financial results is available in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" section within Axalta's most recent annual report on Form 10-K, and in other documents that we have filed with, or furnished to, the U.S. Securities and Exchange Commission. Axalta undertakes no obligation to update or revise any of the forward-looking statements contained herein, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

The financial information included in this presentation includes financial information that is not presented in accordance with generally accepted accounting principles in the United States (“GAAP”), including Adjusted EBITDA. Management uses these non-GAAP financial measures in the analysis of our financial and operating performance because they assist in the evaluation of underlying trends in our business. Adjusted EBITDA consists of EBITDA adjusted for (i) non-cash items included within net income, (ii) items Axalta does not believe are indicative of ongoing operating performance or (iii) nonrecurring or infrequent items that Axalta believes are not reasonably likely to recur within the next two years. We believe that making such adjustments provides investors meaningful information to understand our operating results and ability to analyze financial and business trends on a period-to-period basis. Our use of the term Adjusted EBITDA may differ from that of others in our industry. Adjusted EBITDA should not be considered as an alternative to net income (loss) income (loss) before operations or any other performance measures derived in accordance with GAAP as measures of operating performance or operating cash flows or as measures of liquidity. Adjusted EBITDA has important limitations as an analytical tool and should be considered in conjunction with, and not as a substitute for, our results as reported under GAAP. Axalta does not provide a reconciliation for non-GAAP estimates for Adjusted EBITDA on a forward-looking basis because the information necessary to calculate a meaningful or accurate estimation of reconciling items is not available without unreasonable effort. For example, such reconciling items include losses, gains or losses that are unusual or nonrecurring in nature, as well as discrete taxable events. We cannot estimate or project these items and they may have a substantial and unpredictable impact on our US GAAP results.