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Axalta (AXTA) Launches Imron HPU DTM Primer, Boosts Portfolio

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Axalta Coating Systems Limited (AXTA - Free Report) recently announced the launch of Imron Industrial high-performance urethane (HPU) direct-to-metal (DTM) primer. It is an innovative primer to support the agriculture, construction and earthmoving equipment market segments. The new technology will lead to higher spraying efficiency, while offering superior corrosion protection to its substrates.

The primer provides corrosion protection specifically witnessed with epoxy primers as well as providing wet-on-wet topcoat application in as little as five minutes without sacrificing topcoat gloss. The versatility of the urethane primer utilizes one common activator for primer and a urethane topcoat, which eases the coating process for applicators.

The company noted that along with the long-term corrosion protection comparable to an epoxy, Imron Industrial HPU DTM primer showcases the added value and diversification of its Imron Industrial portfolio.

Shares of Axalta have gained 18.1% in the past year compared with a 14.3% rise of the industry.

Zacks Investment ResearchImage Source: Zacks Investment Research

Axalta forecasts net sales for the third quarter to decline roughly $40 million compared with the volume levels expected in the earlier-announced outlook. It expects adjusted EBIT between $130 million and 140 million, considering a positive business mix, ongoing price increases and continued cost actions.

The earlier guidance for Q3 adjusted EBIT was $138 million at the midpoint of the range. Axalta also withdrew its earlier-announced guidance for full-year 2021 due to the uncertainty related to these factors and expected financial impacts during the fourth quarter.

 

Zacks Rank & Key Picks

Axalta currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , The Chemours Company (CC - Free Report) and Olin Corporation (OLN - Free Report) .

Nucor has a projected earnings growth rate of around 537.4% for the current year. The company’s shares have soared 98.8% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Chemours has an expected earnings growth rate of around 86.4% for the current year. The company’s shares have gained 33.6% in the past year. It currently carries a Zacks Rank #2 (Buy).

Olin has an expected earnings growth rate of around 662.2% for the current fiscal. The company’s shares have surged 214% in the past year. It currently flaunts a Zacks Rank #1.