AkzoNobel reported its Q4 2022 and full-year 2022 financial results in early February, reporting increased revenues driven by price increases. The company reported a 13 percent revenue increase for 2022, compared to 2021. Pricing was up 14 percent. Operating income for the year was reported at €708 million (2021: €1,118 million), resulting from lower volumes, higher raw material and freight costs, inflation on operating expenses and €46 million negative impact from hyperinflation accounting. Adjusted EBITDA was €1,157 million (2021: €1,436 million) For Q4 2022, revenue was up eight percent and nine percent higher in constant currencies; pricing was up 11 percent through the quarter. AkzoNobel also noted the completion of wheel liquid coatings business Lankwitzer Lackfabrik in December 2022; it also finalized a €500 million share buyback.
UP AT AXALTA
Axalta Coatings posted earnings of 20 cents per share (U.S. dollars) in Q4 2022, compared with 23 cents per share in Q4 2021. In the company’s overall results for 2022, revenues were up nine percent year-over-year to US$1,236.7 million, beating the Zacks Consensus Estimates of US$1,216.6 million. According to the press release, Axalta benefited from higher average price and product mix, as well as improved volumes from 2021.
As with the other big automotive coatings players, PPG also reported increased sales—record-breaking full-year results, in fact. Sales for 2022 were reported at US$17.7 billion, aided by eight percent organic growth, said PPG. Meanwhile, overall sales volumes fell by five percent year-over-year. The company also delivered record net sales for Q4 2022 in the automotive refinish and PPG Comex coatings businesses, said Tim Knavish, PPG president and chief executive officer. PPG said Q4 2022 automotive refinish coatings organic sales grew by “a low double-digit percentage” driven by both higher selling prices and sales volumes.
SHINING AT SHERWIN
Sherwin Williams reported 11.1 percent growth in consolidated sales for 2022, while net sales from retail stores opened for more than 12 months in the U.S. and Canada increased by 11.7 percent through the year. The company said consolidated net sales increased primarily due to selling price increases in all segments, as well as higher sales volumes in the Americas Group. “These factors were partially offset by higher raw material costs across all three segments [in which the company operates],” said Sherwin Williams in a press release.
Canadian Tire shares grew nearly 12 percent from January 1, 2023, through February 14, 2023, largely thanks to recent inflation and consumers’ cautious spending habits. Analysts from the Motley Fool expect inflation control to result in further growth for Canadian Tire stocks, the stocks site wrote on Monday, pointing out that the retail giant provides “a top choice for Canadians seeking auto parts” during an economic downturn.
Magna International shares dropped more than 17 percent after announcing lower-than-expected results for 2022. The company said it earned US$95 million (33 cents per share) in Q4 2022, down from US$464 million (US$1.54 per diluted share) in Q4 2021. Analysts had expected profits of US$1.02 per share, according to Refinitiv. Shares dropped 15 percent in the immediate hours following the news.