Tuesday Ticker: Paint providers mark Q3 gains

Toronto, Ontario ⁠— In this weekly Tuesday Ticker, we’re looking at the Q3 performance of two paint giants⁠—Axalta and PPG⁠—both of which reported strong performances for the three months ending Sept. 30, 2023. Plus, shout out to Sherwin Williams for marking some significant net sales from U.S. and Canadian storefronts. 

Axalta aces Q3

Axalta said its net sales increased by 5.7 percent (year-over-year) in Q3 2023, reporting US1.3 billion in its Nov. 1 financials announcement. 

The increase was primarily driven by a 6.3 percent higher average price mix and “modest foreign currency translation benefit of 2.2 percent,” said Axalta in its release.

Volumes declined by 2.8 percent alongside strong growth in mobility coatings, said Axalta, yet this was offset by declines in performance coatings. 

“This was a solid quarter for Axalta,” said CEO and president Chris Villavarayan. “I want to reiterate that Axalta’s transformation journey is just beginning. We have made investments into the business this year which will begin to unlock the earnings power of the enterprise.”

As of 2:20 p.m. ET on Monday, shares of Axalta traded at US$30.18 per share, up 1.38 percent from open.

Powerful PPG

PPG reported its Q3 2023 financials in mid-October, when the coatings giant said it achieved record net sales of US$4.6 billion⁠—a four percent increase over Q3 2022.

PPG said the results were supported by its “resilient business portfolio mix despite soft global industrial production” and aided by record sales in the aerospace, automotive OEM, automotive equipment refinish and PPG Comex divisions.

The company also said the raw materials and logistical available continued to improve through Q3 2023, with the realized cost of raw materials dropping by a “high single-digit percentage, compared to 2022.” Regardless, costs of raw materials remain “above historical levels,” said PPG, yet costs are expected to decrease by a further “high single-digit percentage” in Q4 2023. 

As of Monday at 2:20 p.m. ET, shares of PPG traded at US$129.53 per share⁠—up a half-percent from open.

Shout out to Sherwin

Sherwin-Williams reported consolidated net sales increases of 1.1 percent (year-over-year) for Q3 2023, but the real shining star of the coatings company’s financial results was in its North American storefronts. 

Sherwin-Williams said its stores open longer than 12 months in the United States and Canada have seen net sales grow three percent year-over-year. 

The company said this was mainly due to “benefits from selling price increases,” as sales volumes for the segment have been approximately flat year-over-year. 

Sherwin-Williams also increased its full-year 2023 diluted net income per share guidance to between US$9.21 and US$9.41 per share, up from the previous guidance range of US$8.46 to US$8.86 per share. 

As of 2:20 p.m. ET on Monday, shares of Sherwin-Williams traded at US$254 per share, down 0.61 percent from open.


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