Hello everyone,
Earnings reports have taken a backseat to coverage of the coronavirus crisis in the business media.
One report that flew under the radar was the first quarter statement from Wilmington-based Chemours.
Chemours beat earnings expectations thanks to efficiencies and a turnaround its titanium products business, the Motley Fool financial site reported.
Management, led by CEO Mark Vergnano, has been credited with making the right moves in trimming debt and increasing efficiencies in dealing with an array of mature businesses ranging from refrigerants to the up and down market for paint ingredient titanium oxide.
The company recently opened a research hub at the University of Delaware STAR Campus in severing ties with the DuPont Experimental Station.
The news had not been especially good for Chemours lately.
The DuPont spin-off that has been embroiled in a dispute over sharing environmental cleanup costs with its former parent. It has long been argued that Chemours was created as a way for DuPont to offload its environmental costs.
Chemours lost a battle in Chancery Court over a provision in its agreement with DuPont to settle the case by arbitration, rather than a lawsuit. The decision has been appealed to the Delaware Supreme Court.
The Motley Fool piece noted that DuPont CEO Ed Breen hinted that arbitration might lead to a settlement in the case that might lift the cloud over Chemours.
Chemours’ stock is not for the faint of heart. After fears of bankruptcy filings that sent shares into the $3 range, Chemours stock soared to $57, only to plunge again on worries about dealing with “forever chemicals” made by DuPont and the up and down titanium market.
After dropping below $8 a share as world markets locked down during the coronavirus crisis, shares have since moved into the $12 range. The dividend is now is now a few ticks below eight percent, although the company may need to cut that figure in dealing with a bumpy road ahead.
Enjoy your day. This newsletter returns tomorrow. – Doug Rainey, chief content officer.
