The Chemours Company reported a loss in its first reporting period. The second quarter results came in the period prior to a July 1 spinoff from DuPont.
Despite the losses, Chemours shares rose by 17 percent in trading on Thursday to about $11 each. This came despite a drop in the overall market as investors apparently did not see losses as great as previously feared.
Some analysts have been skeptical about the performance of the company, which is in volatile markets and carries legal liabilities arising from DuPont’s chemical heritage.
Second quarter net sales were $1.5 billion, a decrease of 10 percent from $1.7 billion in the prior-year quarter. Second quarter net loss was $18 million, compared to net income of $116 million in the second quarter 2014.
Lower prices, plant outages and unfavorable currency movements contributed to the loss. That was partially offset by lower overhead costs.
Chemours President and CEO Mark Vergnano said, “Now that our separation from DuPont is complete and we are an independent entity, we have begun aggressively driving a five-point plan to transform Chemours into a higher value chemistry company. We will reduce costs, grow our market positions, optimize our portfolio, refocus our investments, and enhance our company by building a nimble, entrepreneurial culture that is customer centered.”
A large chunk of the company’s business centers on titanium technologies and refrigerants for air conditioners. One of the company’s plants is in Edgmoor, outside Wilmington. The company is building a titanium technologies plant in Mexico that is accounting for a large amount of capital spending.
Titanium Technologies segment sales were $642 million, an 18 percent decline versus the prior-year quarter.
Fluoroproducts segment (refrigeration) sales were $588 million, a 2 percent decline versus the prior-year quarter.
Chemical Solutions segment sales were $278 million, a 6 percent decline versus the prior-year quarter. The company plans to take a look at the future of the business.
Chemours announced a plan to transform the company by reducing structural costs, growing market positions, optimizing its portfolio, refocusing investments, and enhancing its organization.
Chemours expects the transformation plan to deliver $500 million of adjusted EBITDA (earnings) improvement over 2015 in 2017.
