Axalta Coating Systems Ltd. has announced its financial results for the first quarter ended March 31, 2017.
“Axalta’s financial and operating performance has started the year well on plan, with top-line growth at the high end of our expectations and continued success in our operating, productivity and acquisition initiatives,” said Charles Shaver, Axalta’s chairman and CEO. “We are thrilled by our agreement to purchase the industrial wood coatings business from Valspar and by the opportunity that this deal and others we have recently closed give us to further extend our growth and competitive position in Performance Coatings.”
First Quarter 2017 Consolidated Financial Results
First quarter net sales of $1,007.8 million were driven by volume growth of 8.9 percent, offset partly by 1.2 percent lower average selling prices and by a 2.2 percent negative foreign currency translation impact. Constant currency net sales increased 7.7 percent compared to the year-ago quarter, driven by volume growth. Acquisitions added 4.5 percent of the volume growth in the quarter. Net sales growth in the first quarter was positive in all regions and included volume growth in all regions and end-markets.
The company reported net income of $64.1 million for the first quarter of 2017 compared with net income attributable to Axalta of $30.9 million in the first quarter 2016. Adjusted net income of $63.1 million for the first quarter of 2017 increased 46.7 percent compared to $43 million in the first quarter 2016.
Adjusted EBITDA of $203.1 million for the first quarter increased 4.3 percent versus $194.8 million in the first quarter of 2016. This result benefited from higher volumes, contribution from acquisitions, lower variable costs and incremental savings from our productivity initiatives. These factors were partially offset by lower average selling prices, negative foreign currency translation and incremental operational expenditures to support planned growth.
“Our first quarter financial performance was solid and puts us on track to achieve our full year guidance,” said Robert Bryant, Axalta’s executive vice president and chief financial officer. “We are pleased that in the first quarter we posted solid sales growth inclusive of expected price reductions in certain areas, while closing on two incremental acquisitions in January as well as entering into the Valspar North American wood coatings purchase agreement, which was signed subsequent to the quarter end. We also announced the authorization of our first share buyback program, which reflects our confidence in the cash generation of the business to fund operations, strategic growth initiatives and return for our shareholders.”