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Axalta Unveils Alesta BE+ Industrial Powder Coating in Mexico

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Axalta Coating Systems Ltd. (AXTA - Free Report) recently launched its new collection of industrial powder coatings in Mexico, Alesta BE+.

The company’s latest industrial product increases productivity, while lowering production costs for customers. Also, the company stated that Alesta BE+ does not generate emissions of volatile organic compounds.

Moreover, the product offers superior corrosion protection on metal providing long-term benefits to end-users. Axalta is committed to minimize its environmental impact globally. Alesta BE+ products are produced without employing heavy metals. It uses a Triglycidyl Isocyanurate (TGIC) free technology.

Axalta’s shares have declined 4% in the past year compared with 38.9% rise of the industry.



In first-quarter 2020 earnings call, the company stated that the most severe demand impacts to its business due to coronavirus are likely to occur in April and May. It expects net sales for April and May to decline around 50% on a year-over-year basis.

The company is actively pursuing reduction in fixed costs to offset the impact of volume declines. It is also focused on cash generation for offsetting any decremental 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 The Scotts Miracle-Gro Company (SMG - Free Report) , Royal Gold, Inc. (RGLD - Free Report) and Franco-Nevada Corporation (FNV - Free Report) , all carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Scotts Miracle-Gro has an expected earnings growth rate of 17.7% for fiscal 2020. The company’s shares have surged 52.2% in the past year.

Royal Gold has an expected earnings growth rate of 67.6% for fiscal 2020. Its shares have returned 36.5% in the past year.

Franco-Nevada has an expected earnings growth rate of 20.3% for 2020. The company’s shares have surged 68.3% in the past year.

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