In this week’s Tuesday Ticker, several of the world’s largest automotive paint suppliers report first-quarter results. Taken together, the reports provide a clear look at conditions in refinish and OEM coatings sector. In general, revenues and total sales, while profits were supported by pricing and cost control.
PPG Industries
PPG reported Q1 net sales of US$3.9 billion, up 7%, with adjusted EPS of US$1.83, up 6% year over year. Adjusted EPS, or earnings per share, removes one-time items to show underlying profitability. Automotive refinish volumes declined, but higher pricing helped offset the drop. Chairman and CEO Tim Knavish said, “We delivered organic sales growth of 1%, demonstrating our ability to maintain growth momentum in a challenging environment.” Organic growth excludes currency changes and acquisitions.
The company reaffirmed full-year EPS guidance of US$7.70 to US$8.10. Shares have fallen 3.2% to US$104.22 since the release.
Sherwin-Williams
Sherwin-Williams reported Q1 net sales of US$5.67 billion, up 6.8%, with adjusted EPS of US$2.35. Its Performance Coatings division, which includes automotive refinish, grew 6.5%, with refinish up by a double-digit percentage. Chair and CEO Heidi Petz said, “We delivered strong sales in a quarter characterized by heightened global uncertainty and continued demand softness in most end markets.”
Since the report's release, shares have declined by about 7.1% to US$312.26.
AkzoNobel
AkzoNobel reported Q1 revenue down 9% year over year, largely due to currency effects and divestments. Adjusted EBITDA—a measure of operating profit before interest, tax and certain one-time items—rose 7% to €345 million. Its Performance Coatings segment includes vehicle refinishes. CEO Greg Poux-Guillaume said, “We delivered a strong quarter of execution in a turbulent market.”
Since the release, shares have fallen to €52.20, down roughly 5.5%.
BASF
BASF reported Q1 sales of €16.02 billion, down year over year, with EBITDA before special items of €2.36 billion. Its Surface Technologies segment, which includes automotive coatings, improved earnings despite lower volumes. CFO Dirk Elvermann said, “We demonstrated resilience and achieved EBITDA before special items of €2.4 billion.”
Net income, or profit after all expenses, rose to €927 million, and the company maintained its full-year outlook.
Since the release, shares have fallen by about 0.9 percent to €54.11.
Axalta Coating Systems
Axalta reported Q1 net sales of US$1.25 billion, slightly down year over year, with adjusted EPS of US$0.56. Performance Coatings, including refinish, declined modestly, while Mobility Coatings reached record first-quarter sales.
CEO Chris Villavarayan said, “We delivered another quarter of excellent execution surpassing our expectations.”
Adjusted EBITDA was US$259 million, supported by cost control and strong cash flow, meaning the business generated solid cash from operations. Shares are currently trading at about US$26.96, down roughly 4.4%.
