Axalta (AXTA) Lowers its Q3 Net Sales Estimates and Withdraws 2021 Guidance

Axalta Coating Systems Ltd. (NYSE: AXTA) fell after-hours Monday following the company's lowered Q3 outlook and withdrawn full 2021-year guidance.

The company lowered its Q3 net sales estimate by $40 million relative to its previous guidance on July 26, given the ongoing impacts of customer supply chain shortages (most notable in the Light Vehicle end-market) and raw material and logistics constraints. The company anticipates an adjusted EBIT for Q3 to range from $130 to 140 million (vs. prior $138 million), benefiting from the positive business mix, ongoing price increases, and continued cost actions.

Further, the company said it is withdrawing its full 2021-year guidance due to the uncertainty related to the above-mentioned factors and expected financial impacts during Q4.

On a consolidated basis, the company believes in the continued recovery in both net sales and profit during 2022 and beyond, given strong global demand, supported by active growth initiatives, and the focus on addressing inflationary pressures with price increases.

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