Axalta Develops Three New Cleaning Products for Commercial Vehicles

Axalta Coating Systems, a leading global manufacturer of liquid and powder coatings, introduces three new cleaning products for commercial vehicle surfaces and equipment: 3800SSurface Cleaner, 3821SLow VOC Surface Cleaner and 3850SEquipment Cleaner.

Axalta’s 3800S Surface Cleaner is a solvent specifically designed to remove wax, grease, silicone, dirt, tar, insect remnants, road film and pinstripe adhesives from surfaces. This product is intended for use on topcoats, sanded substrates, OEM finishes, cured and repainted surfaces, and sanded primers.

Axalta’s 3821S Low Volatile Organic Compound (VOC) Surface Cleaner is uniquely formulated for dissolving water-soluble and light surface contamination. It is a VOC-compliant multi-purpose surface cleaner designed to clean surfaces such as primers, topcoats, sanded substrates, OEM finishes and cured, repainted surfaces.

Axalta’s 3850S is an effective gun and equipment cleaner that is ready to use and VOC compliant.

For more information on Axalta coatings for the commercial vehicle industry, please visit axalta.us/transportation.

About Axalta Coating Systems
Axalta is a leading global company focused solely on coatings and providing customers with innovative, colorful, beautiful and sustainable solutions.  From light OEM vehicles, commercial vehicles and refinish applications to electric motors, buildings and pipelines, our coatings are designed to prevent corrosion, increase productivity and enable the materials we coat to last longer.  With nearly 150 years of experience in the coatings industry, the 12,800 people of Axalta continue to find ways to serve our more than 120,000 customers in more than 130 countries better every day with the finest coatings, application systems and technology.  For more information visit axaltacoatingsystems.com and follow us @axalta on Twitter and on LinkedIn.

 

Read more at: http://www.axaltacs.com/us/en_US/newsroom/news-releases/2015-09-24.html

Axalta Releases First Quarter 2015 Results

Axalta Coating Systems Ltd. (NYSE:AXTA) (“Axalta”), a leading global coatings company, announced its financial results for the first quarter ended March 31, 2015.

Quick Overview

  • Net sales of $1.0 billion, an increase of 5.2% excluding negative currency translation versus Q1 2014
  • Adjusted EBITDA of $182.0 million with an Adjusted EBITDA margin of 18.4%, an increase of 60 basis points versus 17.8% in Q1 2014
  • Jiading, China expansion operational and ramping up with Light Vehicle volumes
  • Successful completion by Carlyle of the sale of 66 million shares in two transactions (20 million via private placement to Berkshire Hathaway, Inc.), increasing our free float to approximately 55% of total market capitalization

“We have started 2015 with a solid quarter that met our net sales and exceeded our Adjusted EBITDA expectations, in spite of significant currency headwinds on a sequential and year-over-year basis. The global automotive refinish markets remain stable and supportive, while growing global new vehicle production has offered us opportunities to expand our business rapidly in emerging economies. We remain focused on transforming Axalta into a growth platform while making solid progress on our existing and new cost and productivity initiatives,” said Charles Shaver, Axalta’s Chairman and Chief Executive Officer. “With a fundamentally stable economic backdrop, we look forward to meeting our financial goals for 2015 with the help of proactive and managed cost reductions and in spite of our expectation for ongoing currency headwinds.”

First Quarter Consolidated Financial Results

Net sales were $1.0 billion for the first quarter of 2015, an increase of 5.2% excluding negative foreign currency translation, or a decrease of 5.6% on an as-reported basis. Drivers of net sales growth included 4.8% volume increases, reflecting strong growth in all regions except EMEA, which saw a modest decline in the period largely from lower sales in Russia and Eastern Europe. Higher average selling prices contributed to a modest 0.4% net sales growth, while unfavorable currency translation reduced net sales by 10.8% primarily due to weakness of the Euro and certain currencies in Latin America compared to the U.S. dollar.

Adjusted EBITDA of $182 million for the first quarter of 2015 decreased 2.5% compared to the first quarter of 2014. The decline resulted from negative foreign currency translation and certain operating investments made to support future volumes across multiple regions, including the Jiading, China plant ramp-up. These factors were partially offset by strong volume and price effects. Adjusted EBITDA margin expanded 60 basis points to 18.4% from the year ago period, benefiting from cost reductions achieved over the last year and modest operating leverage.

Performance Coatings Results

The Performance Coatings segment generated net sales of $557.2 million during the first quarter of 2015, an increase of 2.5% excluding foreign currency impacts, and a decrease of 9.6% on an as-reported basis, compared to the first quarter of 2014. Increased volumes contributed 1.9% while higher average selling prices added 0.6% to net sales growth. These factors were more than offset by a 12.1% unfavorable currency translation impact. Net sales from our refinish end-market grew 2.7% on a constant currency basis compared to the first quarter of 2014, while our industrial end-market reported 1.9% growth excluding the impact of currency.

The Performance Coatings segment generated Adjusted EBITDA of $107.1 million, a decrease of 14.0% compared to the first quarter of 2014. This result reflected negative foreign currency translation on positive volumes and pricing growth contributions, offset by higher operating expenses from investments in growth initiatives. Performance Coatings segment Adjusted EBITDA margin of 19.2% reflected a 100 basis point decrease compared to the first quarter of 2014.

Transportation Coatings Results

The Transportation Coatings segment generated net sales of $432.0 million in the first quarter of 2015, an increase of 9.1% excluding foreign currency impacts, and essentially flat at 0.2% growth on an as-reported basis, compared to the first quarter of 2014. Volume and slightly higher average selling prices contributed 9.1% to net sales growth, while unfavorable currency translation reduced net sales by 8.9% compared to the prior year. Net sales from our light vehicle end-market grew by 7.4% on a constant currency basis compared to the first quarter of 2014. Our commercial vehicle end-market saw substantial net sales growth of 15.4% on a constant currency basis versus last year. Strong growth in light vehicle net sales in Asia Pacific and North America was offset in part by flatter performance in other regions. Strong heavy-duty truck volumes continue to drive solid double digit growth from all regions except EMEA, where a recovery has been slower to take shape to date.

The Transportation Coatings segment generated Adjusted EBITDA of $74.9 million, an increase of 20.4% compared to the first quarter of 2014. Adjusted EBITDA growth was driven by solid volume and price effects as well as productivity benefits from our operational improvement initiatives, partially offset by the negative impact of foreign currency translation. The Transportation Coatings segment generated an Adjusted EBITDA margin of 17.3%, an increase of 290 basis points compared to the first quarter of 2014.

Balance Sheet and Cash Flow Highlights

We ended the quarter with cash and cash equivalents of $222.9 million. Our net debt was $3,402.6 million as of March 31, 2015, which resulted in a first quarter Net Debt to Adjusted EBITDA ratio of 4.1x.

First quarter operating cash flow was a use of $98.7 million versus a use of $67.2 million in the year-ago quarter, reflecting normal seasonal working capital swings coupled with payments relating to transition-related activities incurred in 2014. We continue to expect solid operating cash flow for the full year 2015.

“Our financial flexibility remains excellent as of the end of the first quarter 2015,” said Robert Bryant, Axalta’s Executive Vice President and Chief Financial Officer. “We expect to generate solid free cash flow in 2015, while continuing to invest in high return productivity and expansion projects.”

We are reiterating our outlook for the full year 2015, including:

Net sales growth of 5-7% in constant currency and flat to slightly down including the impact of currency;

Adjusted EBITDA of $860-$900 million with an Adjusted EBITDA margin of approximately 20%; and

Normalized effective tax rate of 27-29%, capital expenditures of approximately $150 million, and net working capital of 13-15% of net sales.

 

Cautionary Statement Concerning Forward-Looking Statements

This release may contain certain forward-looking statements regarding Axalta and its subsidiaries including those relating to 2015 demand trends, net sales growth, Adjusted EBITDA, effective tax rate, free cash flow, capital expenditures and net working capital. 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. 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 historical 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 EBITDA, Adjusted EBITDA and Net Debt. 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. Our use of the terms EBITDA, Adjusted EBITDA and Net Debt may differ from that of others in our industry. EBITDA, Adjusted EBITDA and Net Debt should not be considered as alternatives 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. EBITDA, Adjusted EBITDA and Net Debt have important limitations as analytical tools and should be considered in conjunction with, and not as substitutes for, our results as reported under GAAP. This presentation includes a reconciliation of certain non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP.

 

Contact:

Axalta Coating Systems
Christopher Mecray, +1 215-255-7970
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Read more at: http://newsroom.axaltacs.com/press-release/corporate/axalta-releases-first-quarter-2015-results

PaintCare Site Locator Now Uses Google Maps

PaintCare®’s Site Locator tool is now employing Google Maps to help users find the nearest, most convenient sites that accept leftover consumer paint. The PaintCare Site Locator at www.paintcare.org, also available as a mobile app for iPhone or Android, allows users to search by zip code, city, state, or street address for a comprehensive listing of locations throughout the United States that accept leftover paint from the public.

The PaintCare Site Locator not only pinpoints leftover paint drop-off sites in states where the PaintCare program has operations — Oregon, California, Connecticut, Rhode Island, Vermont, and Minnesota — but all household hazardous waste programs throughout the country that run programs to accept post-consumer paint.

PaintCare, a 501(c)(3) organization created by the American Coatings Association (ACA), ensures effective operation and efficient administration of paint product stewardship programs, on behalf of all  manufacturers of architectural paint sold in the United States. PaintCare undertakes the responsibility for ensuring an environmentally sound and cost-effective program by developing and implementing strategies to reduce the generation of post-consumer architectural paint; promoting the reuse of post-consumer architectural paint; and providing for the collection, transport, and processing of post-consumer architectural paint using the hierarchy of "reduce, reuse, recycle," and proper disposal.

All PaintCare drop-off sites accept at least five gallons of paint per visit. Some participating retailers will accept more than five gallons. PaintCare recommends that users contact any drop-off location before bringing in paint to make sure they can accommodate the desired amount of paint for drop-off.

As a reminder, PaintCare sites accept house paint and primers, stains, sealers, and clear coatings (e.g., shellac and varnish) but not aerosols (spray cans), solvents, nor products intended for industrial or non-architectural use. Accepted products are referred to as “Program Products” or “architectural paint,” which must be in containers that are no larger than 5 gallons in size. Paint must be in its original container and the container must have a label and a secured lid. Please note that leaking, unlabeled, and empty containers are not accepted at drop-off sites.

PaintCare Program Accepted Products

  • Interior and exterior architectural paints: latex, acrylic, water-based, alkyd, oil-based, enamel (including textured coatings)
  • Deck coatings, floor paints (including elastomeric)
  • Primers, sealers, undercoaters
  • Stains
  • Shellacs, lacquers, varnishes, urethanes
  • Waterproofing concrete/masonry/wood sealers and repellents
  • Metal coatings, rust preventatives
  • Field and lawn paints 

Non-Program Products (not accepted at drop-off sites)

  • Paint thinners, mineral spirits, solvents
  • Aerosol paints (spray cans)
  • Auto and marine paints
  • Art and craft paints
  • Caulking compounds, epoxies, glues, adhesives
  • Paint additives, colorants, tints, resins
  • Wood preservatives (containing pesticides)
  • Roof patch and repair
  • Asphalt, tar and bitumen-based products
  • Two-component coatings
  • Deck cleaners
  • Traffic and road marking paints
  • Industrial maintenance (IM) coatings
  • Original equipment manufacturer (OEM) (shop application) paints and finishes

Visit www.paintcare.org to search for drop-off sites, or search for “PaintCare” in the Apple store or Google Play to download the PaintCare Site Locator mobile app for iPhone or Android. It works just like the search tool on our website.

Read more at: http://www.paint.org/news/industry-news/item/1747-paintcare%C2%AE-site-locator-now-uses-google-maps.html

New Axalta - Penn State partnership celebrated with visit from Jeff Gordon

 Penn State welcomed four-time NASCAR Cup Champion Jeff Gordon to campus on April 14 to kick off a partnership between the University and Axalta Coating Systems. The celebration also included the unveiling of a special paint job on Gordon's No. 24 car in Penn State blue and white. 

The partnership between Penn State and Philadelphia-based Axalta, a leading manufacturer of liquid and powder coatings, is designed to drive awareness and support for science, technology, engineering and mathematics (STEM), and business education.

Hundreds of students, faculty, staff and spectators came out to welcome Penn State President Eric Barron, Axalta representatives and Gordon in celebration of the partnership, which will offer new educational opportunities to students in engineering and business disciplines. 

NASCAR driver Jeff Gordon visited Penn State on April 14 to unveil the new No. 24 Penn State-Axalta race car, which he will drive in June in the Pocono Raceway Axalta "We Paint Winners" 400. Penn State and Axalta Coating Systems have entered into an educational partnership supporting engineering and business students.

Penn-Axalta Car

"Helping students toward career success is of critical importance to the Penn State experience, and partnerships such as this are another way of giving our students special, hands-on opportunities to learn about their fields of study and the job market," Barron said. 

Charlie Shaver, chairman and CEO of Axalta, added, "It is crucial to many industries, including Axalta's, to have access to skilled engineers and business leaders, and Penn State is providing the specialized programs needed to prepare them for the future."

Shaver says he's excited for the partnership's opportunity to show the impact of engineering and business on racing. "I have a personal drive to recruit the best and brightest people and get them excited about what we do for a living," he said.

Select students in Penn State's College of Engineering and Smeal College of Business will receive special learning opportunities with Gordon and his team at Pocono Raceway. The contingent of students will be on hand at the raceway during the weekend of June 6, where they will have a chance to tour the garages and learn more about the technology of the cars.

In addition, they'll attend a presentation session with Gordon's crew chief, Alan Gustafson, and have dinner with Axalta executives and Gordon. 

"This kind of exposure definitely adds to the value of STEM education, and unique experiences such as these are what make college life come alive," said Olga Vinogradova, a chemical engineering major who landed the opportunity to ride in the car with Gordon on his tour through campus.

"Supporting STEM education and future business leaders is vital to our future. I'm proud to partner with Axalta and Penn State on this exciting program," said Gordon. 

A four-time NASCAR Cup Series champion, three-time Daytona 500 winner and five-time Brickyard 400 champion, Gordon has also been a champion of STEM education for many years. 

"Supporting STEM education and future business leaders is vital to our future. I'm proud to partner with Axalta and Penn State on this exciting program."

— NASCAR great Jeff Gordon

 

Read the full article and see more pictures at: http://news.psu.edu/story/353236/2015/04/15/academics/penn-state-celebrates-new-axalta-partnership-visit-jeff-gordon

 

Axalta Unveils New Sustainable Coating for China’s Commercial Vehicle Market

 Axalta Coating Systems, a leading global supplier of liquid and powder coatings, launches Imron® Hydro and Imron® Elite in China. The two products are part of the Imron family of coatings that are designed to help commercial vehicle manufacturers and operators meet productivity goals and increasingly challenging global and Chinese environmental regulations.

Axalta's Imron Hydro range of waterborne solutions provide a high-quality and environmentally responsible system for manufacturers and operators of heavy-duty trucks, high-speed rail cars, buses, and agriculture, construction and earth moving (ACE) equipment as well as other industrial goods. Imron Hydro is based on concentrated and effective tints that use the latest generation pigments and dispersion technology. Combined with a variety of binders based on patented Axalta resin technology, Imron Hydro is available either as a factory package (fac-pac) or product line consisting of unique water-based mixing tints combined with quality binders that enable local preparation of any made-to-match topcoat color customers may need. Imron Hydro is formulated to provide excellent hiding capability. This improves productivity by reducing both the amount of paint required and application time while still offering excellent appearance, superior durability and strong chemical resistance. In addition, because Imron Hydro is a waterborne coating it generates lower levels of VOC emissions which can help customers meet China’s environmental regulations.

Axalta is also introducing to China its Imron Elite high solids solventborne solution, a simple but versatile system for high-performance, low-VOC commercial finishing. Using high solids 2K polyurethane technology, Imron Elite provides a premium quality finish with superior durability and high chemical resistance. Imron Elite offers more than 18,000 color formulas. The higher ratio of solids to solvents in the formulation results in reduced VOC emissions which help make Imron Elite compliant with VOC regulations in China and a number of other markets.

Imron products are well established around the world and have been used on over three million vehicles. Globally, more than 1,000 commercial vehicle customers are using the Imron family of products to reduce paint consumption, application cost and VOC emissions. With Imron brands, Axalta customers enjoy sustainable coating solutions that are both environmentally and financially responsible, and are empowered to provide high quality coatings for trucks, buses, railways, and various other commercial vehicles.

“Axalta is very focused on sustainability and helping our customers meet both their commercial and environmental goals,” said Luke Lu, Vice President of Axalta and President of its business in China. "We are a major supplier of coatings and finishes to the Chinese automotive and commercial vehicle industry and it is essential that we, working with our customers, do all we can to support the government's drive for reduced emissions to protect the environment. Our Imron Hydro and Imron Elite products comply with China’s environmental regulations and we continue to be a leader in the coating industry’s efforts to reduce VOC emissions while at the same time improving productivity for our customers. We strive to produce coatings that are easy to apply, offer outstanding durability and provide a finish that will enhance the image of every vehicle.”

Earlier this month, Axalta opened a new waterborne coatings manufacturing plant in Jiading, near Shanghai, to produce sustainable solutions for China’s growing transportation market, a milestone initiative which is part of Axalta’s global strategy to drive long-term sustainability in China’s transportation industry as well as in other sectors.

Axalta's other facilities in China include two additional liquid coating manufacturing operations, an Asia Pacific R&D laboratory and color development center, four training facilities for refinish customers and six powder coating manufacturing locations. Axalta’s multiple resources in China work together to support the sustained, long-term growth of China’s transportation and other industries that use Axalta coatings.

About Axalta

Axalta is a leading global company focused solely on coatings and providing customers with innovative, colorful, beautiful and sustainable solutions. From light OEM vehicles, commercial vehicles and refinish applications to electric motors and transformers, buildings and pipelines, our coatings are designed to prevent corrosion, increase productivity and enable the materials we coat to last longer. With more than 145 years of experience in the coatings industry, the 12,000 people of Axalta continue to find ways to serve our more than 120,000 customers in 130 countries better every day with the finest coatings, application systems and technology.

 

Contact:

Axalta Coating Systems
Ada Gao
D +(86)21-6020-3666
F +(86)21-6020-3667
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axaltacoatingsystems.com
or
EBA Communications
Diana Chang
D + (86) 21-6289-3489 ext 15
F + (86) 21-6289 5891
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