Axalta expands industrial market range
On November 6, 2017, Axalta Coating Systems (AXTA) announced that it will be expanding its portfolio in the industrial market by including Tufcote 3.5 HH silicone alkyd direct-to-metal topcoats. Axalta claims that this will be a cost-effective and high temperature-resistant.
These coats can be used in boilers and mufflers that are exposed to high temperatures. It should also be noted that Tufcote 3.5 HH coating meets the National Rule Regulatory requirements.
Axalta Product Director of North America Industrial John Corry stated: “We are thrilled to add new high-heat products to Axalta’s industrial economy line. The Tufcote 3.5 HH series is an ideal choice for customers who need an easy-to-apply coating that offers excellent durability, good resistance to cracking, and abrasion protection for exterior surfaces that yield temperatures up to 1200°F.”
In another development, Axalta will exhibit Nap-Gard, which is catered to oil and gas industry, and Abcite, for water pipelines in the Middle East and North Africa, on November 13-16 at the Abu-Dhabi International Petroleum exhibition.
Axalta’s stock performance
AXTA stock has remained low for a week now, after previously rising on the news of a potential merger with AkzoNobel. AXTA closed at $31.98, or 2.6% lower, for the week ended November 10, 2017. Although the stock declined, AXTA traded 5.1% above its 100-day moving average price of $30.98.
On a YTD (year-to-date) basis, AXTA has returned 17.6%, while peers RPM International (RPM), Sherwin-Williams (SHW), and PPG Industries have returned -4.6%, 44.9%, and 21.0% respectively. AXTA’s relative strength index score of 58 indicates that the stock is neither oversold nor overbought.
Notably, AXTA has underperformed the iShares US Basic Materials ETF (IYM), which has fallen 1.3% YTD. IYM had nearly 1.1% of its portfolio in AXTA as of November 10.