Chemours reported strong earnings in the second quarter.Second quarter net sales were$1.6 billion, an increase of 15 percent from$1.4 billionin the prior-year quarter. Shares of the company continued to trade in record territory at $47, after falling as low as $3 in 2016.
Second quarter net sales were$1.6 billion, an increase of 15 percent from$1.4 billionin the prior-year quarter. Shares of the company continued to trade in record territory at $47, after falling as low as $3 in 2016.
Second quarter net income of$161 million, increased$179 million, compared to a net loss of$18 million.
In the second quarter, Titanium Technologies segment sales were$729 million, a 22 percent increase versus the prior-year quarter, driven by higher global average selling prices and demand for Ti-Pure titanium dioxide.
In the second quarter, Fluoroproducts segment sales were$710 million, an increase of 24 percent compared to the prior-year quarter. Expanded adoption of Opteon refrigerants and strong demand for fluoropolymers drove higher volume compared to last year’s second quarter
Chemical Solutions second quarter 2017 sales were$149 million, a 30 percent decline versus the prior-year quarter, reflecting the impact of sales of businesses.
Chemours CEOMark Vergnanostated, “Our strong financial performance is a clear reflection of the quality of our business segments, the engagement of our employees, and the loyalty of our key customers. With two years behind us as a stand-alone company, we are seeing the positive effects of our transformation plan paired with improving end markets. Customer preference for our Ti-Pure titanium dioxide delivered another strong quarter for our Titanium Technologies business. Opteon refrigerants adoption ramp up remains in full force, leading the double-digit volume growth reported within Fluoroproducts. Overall, these resulted in higher volumes and significant margin improvement year-over-year. We are pleased with the strength of the first half and expect to continue this positive trajectory through 2017.”
Vergnano commented on the outlook for the remainder of 2017, “We plan to build on the momentum of the first half and now expect to deliver 2017 Adjusted EBITDA within a range of$1.3 to $1.4 billiongiven the benefits of our transformation plan initiatives, lower levels of transformation-related costs in the second half, and the strength of our improving key end markets. We expect Free Cash Flow to be approximately breakeven, including the anticipated payment for the PFOA MDL settlement.”
That settlement deals with a settlement over water exposure to a chemical once used in the production of Teflon in West Virginia. Costs are shared with DuPont.
Chemours is based in Wilmington.