Axalta Coating Systems Ltd. AXTA has launched its new polyurethane wood coating product offering. It is designed to protect and improve the aesthetics of wood surfaces. Through the addition of the Imron Industrial Wood product line, Axalta has official expanded into the polyurethane wood coatings market.
The Imron Industrial brand is renowned for its high-quality and performance. The premium, durable formaldehyde-free products under the Imron Industrial brand are resilient against chemical and abrasion damages. The company stated that these products can be applied using a variety of spray application methods with outstanding dry and sand times.
Further, Imron Industrial polyurethane products are developed on advanced technology platform that provides superior quality application and durability. The new line is basically designed for interior wood surfaces such as finishing tables, chairs, kitchen or bath cabinetry and office furniture.
Axalta’s shares have declined 28.3% in the past year against 31.4% rise of the industry.
In first-quarter 2020 earnings call, Axalta stated that the most severe demand impacts to its business due to the coronavirus outbreak are likely to occur in April and May. The company also expects net sales for April and May to decline around 50% on a year-over-year basis.
Axalta is actively pursuing reduction in fixed costs to offset the impact of volume declines. It is also focused on cash generation for offsetting any negative impacts stemming from lower volumes. Axalta expects to deliver more than $225 million in cash flow from cost-saving measures undertaken by the company.
Zacks Rank & Key Picks
Axalta currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Barrick Gold Corporation GOLD, Newmont Corporation NEM and AngloGold Ashanti Limited AU, all carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Barrick has an expected earnings growth rate of 54.9% for 2020. The company’s shares have surged 60.8% in the past year.
Newmont has an expected earnings growth rate of 80.3% for 2020. Its shares have returned 53.7% in the past year.
AngloGold has an expected earnings growth rate of 109.9% for 2020. The company’s shares have surged 64.3% in the past year.
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