Industrial net sales decreased 28.8% to $220.2 million (decreased 23.2% excluding foreign currency and M&A-related impacts), including volume declines over 20% but with largely stable average price and product mix globally. Axalta is a global leader in the coatings industry, providing customers with innovative, colorful, beautiful and sustainable coatings solutions. Mr. Bryant commented, "Given the significant customer demand headwinds we are facing due to COVID-19, we have made the difficult decision to undertake a global restructuring to address the continued effects of the pandemic and further improve our cost structure. Free cash flow totaled a use of $17.8 million compared to $103.7 million provided in the prior year second quarter, including lower capital expenditures in the period totaling $19.7 million versus $26.7 million in second quarter 2019. With more than 150 years of experience in the coatings industry, the global team at Axalta continues to find ways to serve our more than 100,000 customers in over 130 countries better every day with the finest coatings, application systems and technology. Employee termination benefits are associated with Axalta Way initiatives. Axalta's stock price reached $29.55 as of noon trading Wednesday, a more than 14.4% increase from its close on Tuesday. Axalta shares fell $0.51 or 1.69% Monday to $29.64. According to Reuters, the latest offer from Nippon Paint was for $37 per share in cash, a price Axalta's management didn't think was enough to complete a … Additionally, the income tax impact includes the removal of discrete income tax impacts within our effective tax rate which were expenses of $3.4 million and benefits of $30.5 million, $5.7 million, and $4.1 million for the three months and six months ended June 30, 2020 and 2019, respectively. These statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of Axalta's control, including developments that could impact the timing, costs and savings associated with, the Restructuring, as well as the review of strategic alternatives that was concluded in March 2020 and the effects of COVID-19, 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. Eliminates foreign exchange losses resulting from the remeasurement of assets and liabilities denominated in foreign currencies, net of the impacts of our foreign currency instruments used to hedge our balance sheet exposures. Category. Axalta shares jumped 14 percent on the news to $29.52 a share, giving the company a market capitalization of about $7 billion. Disclaimer | The Company expects to incur cash costs of $55-65 million inclusive of capital expenditures, with $25-30 million of the total expected for the remainder of 2020. The deferred tax benefit will be ratably amortized into our adjusted income tax rate as the tax attribute is realized. As we do not measure segment operating performance based on net income, a reconciliation of this non-GAAP financial measure with the most directly comparable financial measure calculated in accordance with GAAP is not available. Mr. Bryant concluded, "I want to thank all members of the Axalta team for their dedication and resilience through this dynamic and challenging period amid the COVID-19 pandemic. Registration on or use of this site constitutes acceptance of our Terms of Service and Privacy Policy. Constant currency organic net sales decreased 32.3% in the period before the net negative M&A-related impact of 1.6% from the China powder JV sale in Q2 2019, and 2.4% from negative foreign currency translation. In May, Axalta announced initial actions taken to counter COVID-19-related customer demand impacts across the business, including reductions in discretionary and other SG&A costs with a target of $100 million in savings to be realized during 2020. The restructuring is expected to result in a net 5% reduction of Axalta's global workforce, or approximately 550 employees globally, with the potential for additional reductions from Europe, subject to works council consultations and local legal requirements. Given this, we remain committed to managing with agility to ensure we mitigate risk and control costs as effectively as possible.". central research and development facility at the Navy Yard business center, stripped assets from a long string of U.S. companies, California residents do not sell my data request. We believe this will assist investors in performing meaningful comparisons of past, present and future operating results and better highlight the results of our ongoing operating performance. A live webcast of the conference call will also be available online at www.axalta.com/investorcall. 76.4% of retail CFD accounts lose money, Common shares, $1.00 par, 1,000.0 shares authorized, 250.6 and 250.1 shares, Termination benefits and other employee related costs, Loss (gain) on divestiture and impairments, Interest proceeds on swaps designated as net investment, Foreign exchange remeasurement (gains) losses, Long-term employee benefit plan adjustments, Dividends in respect of noncontrolling interest, Registration on or use of this site constitutes acceptance of our, Alibaba falls 7% in premarket trading after Chinese regulators open antitrust investigation into the company », AT&T service is down in some areas following a car explosion, impacting some 911 lines ». Constant currency net sales growth, income tax rate, as adjusted, EBIT, Adjusted EBIT, EBITDA, Adjusted EBITDA, Adjusted EPS, free cash flow, net debt, Adjusted net income and Adjusted EBITDA to interest expense coverage ratio should not be considered as alternatives to net sales, 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. © 2020 The Philadelphia Inquirer, LLC Terms of Use/Privacy Policy/California Notice California residents do not sell my data request. Represents indemnity income associated with the acquisition by Axalta of the DuPont Performance Coatings business, which we do not consider indicative of our ongoing operating performance. Represents certain non-operational or non-cash gains and losses unrelated to our core business and which we do not consider indicative of ongoing operations, including indemnity (income) losses associated with the acquisition by Axalta of the DuPont Performance Coatings business, gains and losses from the sale and disposal of property, plant and equipment, gains and losses from the remaining foreign currency derivative instruments and from non-cash fair value inventory adjustments associated with our business combinations. Axalta has identified some of these forward-looking statements with words such as "anticipates," "believes," "expects," "estimates," "is likely," "outlook", "projects," "forecasts," "may," "will," "should," "plans" and "intends" and the negative of these words or other comparable or similar terminology. Reducers & Thinners; Primers Sealers & Fillers; Toners & Balancers Solution Following extensive, long-term research and collaboration with Axalta Coating Systems Asia Pacific in six countries, Avanade custom built the Axalta Price Approval System (APAS), an all-new, intelligent pricing approval system based on Microsoft SharePoint 2013. Second quarter total use of operating cash flow was $1.7 million versus $126.7 million of cash generated in Q2 2019, reflecting reduced operating income during the period, including COVID-19 impacts on the business, offset in part by improved working capital and reduced cash outflows related to customer investments in the period. Shares closed at $29.33, up from $25.88 Tuesday, and the highest since last August. All rights reserved. Axalta’s largest owner is billionaire Warren Buffett’s Berkshire Hathaway Corp., who has stripped assets from a long string of U.S. companies that weren’t sending him cash as fast as he wanted. Performance Coatings second quarter net sales were $482.1 million, a decrease of 36.3% year-over-year. Constant currency net sales declined 53.7% in the period, driven by a 57.2% decrease in volume, offset partially by 3.5% higher average price and product mix. Mr. Bryant commented, "We are proud that the second quarter benefited substantially from our proactive management philosophy and key actions implemented, allowing June results to return to profitability with volumes only partially recovered during the month. Axalta is the 17th largest public company in … Stay up to date on the latest stock price, chart, news, analysis, fundamentals, trading and investment tools. (To watch Viswanathan’s track record, click here)Axalta has a Strong Buy analyst consensus rating, based on 9 recent reviews breaking down to 7 Buys and 2 Holds. The primary measure of segment operating performance is Adjusted EBIT, which is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts and prior year financial results, providing a measure that management believes reflects Axalta's core operating performance. Rising tops and bottoms can be seen easily on a chart and how price action provided very few buy points on the breakouts. Represents costs for legal, tax and other advisory fees pertaining to our review of strategic alternatives that was concluded in March 2020, as well as retention awards for certain employees which will be earned over a period of 18-24 months. Axalta ended the quarter with cash and cash equivalents of $1.1 billion. Robert W. Bryant, Axalta's President and CEO, commented, "We continue to be impacted by the coronavirus pandemic across our business, and we remain focused on operating safely while protecting the health and well-being of our employees, customers, and communities where we live and work. Eliminates the non-cash, non-service cost components of long-term employee benefit costs. Refinish net sales declined 41.4% to $261.9 million in Q2 2020 (decreased 38.7% excluding foreign currency) with lower volume including demand impact from COVID-19 which substantially reduced global traffic volumes, as well as reduced average price and product mix contribution principally from a change in product mix. Our net debt to trailing twelve month Adjusted EBITDA ratio was 4.0x at quarter end. Our debt, net of cash, was $2.9 billion as of June 30, 2020, which compared with $2.8 billion as of December 31, 2019. "Second quarter results benefited from approximately $75 million in cost savings as well as $70 million in incremental cash flows versus our prior plan from reduced capital expenditures and actions to drive working capital savings. The dial-in phone number for the conference call is +1-201-689-8560. © 2020 Insider Inc. and finanzen.net GmbH (Imprint). Adjusted net income shows the adjusted value of net income (loss) attributable to controlling interests after removing the items that are determined by management to be items that we do not consider indicative of our ongoing operating performance or unusual or nonrecurring in nature. Sales were $ 482.1 million, a more than 14.4 % increase from its close on.... Price, chart, news, analysis, fundamentals, trading and investment tools of DuPont performance Coatings Axalta! Ltd. ( AXTA ) stock EBIT of $ 1.1 billion innovative, colorful, beautiful and sustainable Coatings solutions noon! 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