Global coatings player Axalta Coating Systems has registered a 13.85 increase in its net sales for the third quarter ended September 30, 2022 compared to the corresponding period previous year. The increase in sales is due to strong pricing and solid volume growth.

Third quarter net sales of $1,238.7 million increased 13.8% year-over-year, including a negative 6.3% foreign currency impact. The strong year-over-year growth was driven by 9.7% higher average price-mix, a 1.6% M&A benefit and 8.8% better volumes. Performance Coatings net sales increased 7.5% year-over-year, driven by constant currency growth of 19.9% in Refinish and 7.1% in Industrial. Mobility Coatings net sales increased 29.5% supported by a recovery in global auto production from the severe supply constraints in the prior-year period.

Income from operations for Q3 2022 totaled $123.5 million versus $124.7 million in Q3 2021. Net income to common shareholders was $62.4 million for the quarter compared with $69.1 million in Q3 2021. Diluted earnings per share was $0.28 compared with $0.30 in Q3 2021. Q3 2022 benefited from robust sales growth, including significant realized pricing gains and volume improvement; however, operating income was negatively impacted by continued variable raw material inflation, and elevated logistics, energy and labor expenses. In addition, foreign currency headwinds, the Russia-Ukraine conflict and COVID-19 lockdowns in China represented a combined ~$16 million headwind to income from operations in the quarter.

Rakesh Sachdev, Axalta’s interim CEO and President, commented, “I am pleased that we were able to report earnings within our stated guidance range despite acute currency and inflationary headwinds plus pockets of softening regional demand. Our resilient third quarter performance can be attributed to the prioritization of price to offset variable cost inflation, as well as continued market recovery in our Refinish and Light Vehicle end-markets. New customer wins across the portfolio supported volume growth and again highlighted our customers’ continued preference for our industry-leading products and services. The third quarter also represented an inflection point in our price-cost trajectory as we more than offset year-over-year variable cost inflation for the first time since the current unprecedented inflationary environment began in mid-2021. Our teams are taking the steps necessary to recapture the value provided by our products and services to our partners, but more is needed for us to return to pre-COVID levels of profitability.”

Sachdev continued, “Enhancing our profitability is among my highest near-term strategic imperatives. Successful day-to-day execution is fundamental to achieving our long-term goals, which will be realized through driving improved operational performance and productivity. We have a great leadership team ready to tackle these objectives. I believe we can accelerate a return to pre-COVID profitability on our pathway to sustained growth.”