PHILADELPHIA — Paint and coatings manufacturer Axalta Coating Systems Ltd. announced that the company’s first quarter net sales of $1,119.3 million decreased 4.5% year-over-year including 4.8% negative foreign currency impacts. Constant currency net sales increased 0.3% in the period, driven by 2.1% higher average price and product mix and modest acquisition contribution, offset partly by 2.1% lower organic volumes. First quarter net sales growth ex-FX was driven by modest growth from the Americas seen in higher price and product mix and growth in Commercial Vehicle end-markets, partially offset by lower net sales from Asia-Pacific, given ongoing volume pressure from China in Transportation Coatings.
Income from operations for the first quarter totaled $98.6 million, down 17.8% from $120.0 million in the first quarter of 2018. This was driven by lower reported net sales including negative foreign currency effects, and continued headwinds from year-over-year variable cost inflation. The quarter was also impacted by $6.1 million in accelerated depreciation charges associated with the company’s anticipated Belgium plant closure and a $5.2 million loss on an anticipated sale of a 60% owned powder coatings joint venture in China.