Chemours posts solid profit in third quarter
Chemours CEO Mark Vergnano said, “We successfully completed the Chemical Solutions portfolio review during the quarter, generating substantial proceeds. And, in the quarter, our Titanium Technologies business benefited from more favorable market conditions, while the fluoropolymers market remained challenged. Transformation initiatives are pervasive throughout the company and our results speak for themselves.”
Chemours was spun off from DuPont in 2015.
Third quarter net sales were $1.4 billion, a decrease of six percent from $1.5 billion in the prior-year quarter, primarily due to the impact of sales Third quarter net income was $204 million.
Adjusted EBITDA (earnings before interest, depreciation and taxes) for the third quarter was $268 million before $169 million in the prior-year quarter.
The sales improvement was largely driven by higher seasonal volumes in Titanium Technologies and Fluoroproducts supplemented by higher titanium products pricing.
In 2015, Chemours shut down its long-running Edgemoor titanium dioxide plant in Delaware. This year, the company confirmed plans would keep its headquarters in Delaware but is still shopping for a site.
As of September 30, consolidated debt was $3.8 billion. Debt, net of cash, was $2.8 billion. In the quarter, the company retired approximately $115 million of its bonds.
Cash balances were $957 million at September 30, 2016. In October 2016, the company retired an additional $107 million of its bonds, resulting in over $315 million of total long-term debt retired year-to-date. As a result, the company expects to save approximately $19 million annually from lower interest obligations.
Vergnano said the company now expects full-year 2016 Adjusted EBITDA to be between $740 million and $775 million.
“We are pleased with the progress we have made year-to-date, and believe we are in a stronger position as we move forward,” Vergnano concluded.
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