Wed, Oct 30, 5:42 PM (64 days ago)
Axalta Coating Systems Ltd. (AXTA) reported a modest increase in net sales to $1,320,000 for Q3 2024, up 0.8% from the previous year, driven by a 2.0% rise in the first nine months. The Performance Coatings segment saw a 2.4% increase in sales, supported by the CoverFlexx acquisition, while Mobility Coatings experienced a slight decline in Q3 sales. Gross profit margins improved, with cost of sales decreasing to 65.0% of net sales from 67.7% in Q3 2023, attributed to lower input costs and operational efficiencies. Net income surged to $102,000, reflecting a 39.7% year-over-year increase, with diluted earnings per share rising to $0.46. Operating cash flow was robust at $342,000, despite a net cash outflow of $374,000 in investing activities primarily due to acquisitions. The company maintains a strong liquidity position with $567,000 in cash and $673,000 available under its revolving credit facility. Looking ahead, Axalta is navigating uncertainties from economic conditions and currency fluctuations, while its 2024 Transformation Initiative aims to streamline operations and enhance profitability. The company anticipates achieving significant cost savings by 2026.