Chemours reports stronger results for fourth quarter and year
The stock price of The Chemours Co. continued to rise this week with strong results in the fourth quarter and year.
Shares closed on Thursday at $32.68, compared to $4.16 a year earlier at the Wilmington-based DuPont spin-off.
(See full earnings release below)
Fourth quarter net sales were $1.3 billion, down 3 percent from $1.4 billion from the same year ago. The fourth quarter net loss was $230 million, during the same period a year earlier.
The net loss in 2016 was primarily due to the settlement charge of $335 million recorded in the quarter.
The 50-50 settlement involving Chemours and DuPont was announced this week covers 3,500 lawsuits arising from discharges of the C-8 chemical from a plant in West Virginia now owned by Chemours.
The key measurement of EBITDA (earnings before interest, tax, depreciation and amortization) for the fourth quarter was $239 million versus $132 million in the prior-year quarter. Fourth quarter results were driven by improved average prices in Titanium Technologies, increased Opteon adoption, and continued progress on cost reductions that were partially offset by the impact of sales of businesses that the company has sold.
Net sales for the year were $5.4 billion, a decrease of 6 percent from $5.7 billion in 2015, primarily due to the impact of divestitures and a lower average price year-over-year in Titanium Technologies. The key market for Chemours has been under pricing pressure.
Net income for the year was $7 million compared to net loss of $90 million in the previous year. Adjusted EBITDA for 2016 was $822 million versus $573 million in the prior year, an increase of 43 percent. The increase was largely driven by strong Opteon growth and benefits from cost reductions, the company reported.
Opteon is a refrigerant chemical used in automobiles and other areas that is viewed as being friendlier to the environment and less of a contributor to global climate change.
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