Axalta Coating Systems has revised its financial outlook downward for third quarter as well as whole year 2017, citing several factors such as the recent natural disasters, distributor working capital adjustments in Axalta’s Performance Coatings segment, and the projected widening of the gap between raw material input costs and offsetting near-term customer price increases.

Axalta now expects that its adjusted EBITDA for the third quarter of the year will be in a range of $205-$215 million while for the whole year 2017, adjusted EBITDA will be US$870-US$900 million. Revised net sales for third quarter 2017 are expected to be between $1.08-$1.10 billion, and net sales for the whole year are expected to grow between 6%-7%. Earlier in August, the company had stated that in 2017, its sales were expected to grow between 7% and 8% and adjusted EBITDA would be between US$940 million and US$970 million.

 “We have seen and expect moderate effects on our business from recent hurricanes and the earthquake in Mexico, largely in terms of lost near-term volume opportunity. We believe that much of this impact will be made up during the course of 2018, and hence see these impacts as largely transitory,” said Charles W. Shaver, Chairman and CEO, Axalta. He added that after recent discussions with certain Performance Coatings distribution partners, the company has incorporated the expected impact of a focused reduction in distributor working capital levels for the balance of the year. The company expects that sales will return to more normal levels during the fourth quarter.

Robert W. Bryant, EVP and CFO of the company added, “We believe the majority of the effects we have described are largely one-time in nature, and much of these are expected to be recovered through the course of 2018. We are also revisiting and will increase our plans for cost reduction and productivity measures that should incrementally benefit Axalta in 2018.” Axalta is a global leader in the coatings industry, providing customers with innovative, colorful, beautiful and sustainable coatings solutions.