Axalta Coating Systems Ltd. reported significant financial growth for the three and nine months ended September 30, 2024, compared to the same periods in 2023. The company achieved a net income of $102 million for Q3 2024, up from $73 million in Q3 2023, and a net income of $254 million for the nine months ended September 30, 2024, compared to $195 million for the same period in 2023. Comprehensive income for Q3 2024 surged to $178 million, a substantial increase from just $5 million in Q3 2023.
Total net sales for Q3 2024 reached $1,320 million, reflecting a slight increase from $1,309 million in Q3 2023. For the nine months ended September 30, 2024, net sales totaled $3,965 million, up from $3,887 million in the prior year. The Performance Coatings segment contributed significantly to this growth, with net sales increasing to $877 million in Q3 2024 from $856 million in Q3 2023, and $2,612 million for the nine months, compared to $2,559 million in the same period last year. The Mobility Coatings segment, however, saw a slight decline in Q3 2024, with net sales of $443 million, down from $453 million in Q3 2023.
The company’s total assets increased to $7,500 million as of September 30, 2024, from $7,272 million at the end of 2023. Shareholders' equity also rose to $1,951 million, up from $1,773 million. Cash and cash equivalents decreased to $567 million from $700 million at the end of 2023, while accounts receivable and inventories increased.
Strategically, Axalta completed the acquisition of The CoverFlexx Group for $290 million on July 2, 2024, enhancing its offerings in aftermarket coatings. The company also initiated a 2024 Transformation Initiative aimed at streamlining operations, which is expected to result in a workforce reduction of approximately 600 employees globally. This initiative is projected to incur pre-tax charges between $75 million and $110 million, with $68 million already recognized for the nine months ended September 30, 2024.
Operating expenses increased due to higher labor costs, while selling, general, and administrative expenses rose as well. The company reported a decrease in cost of sales as a percentage of net sales, attributed to lower variable input costs and reduced expenses related to ERP implementation.
Overall, Axalta's financial performance reflects a robust recovery and strategic growth, despite challenges in certain segments and ongoing transformation efforts.
About Axalta Coating Systems Ltd.
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