Chemours reports higher earnings in 2020

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Chemours Company, Wilmington, reported higher net income in 2020. Sales declined as the company felt the effects of the Covid-19 pandemic.
Highlights
  • Net Sales of $5 billion
  • Net Income of $219 million with earnings per share of $1.32
  • Free Cash Flow* of $540 million
  • Chemours, DuPont, and Corteva announced the resolution of legacy PFAS (forever chemicals) claims in a settlement valued at $4 billion. Chemours had taken former parent DuPont to court over claims that environmental liabilities were understated.
2021 Outlook
  • Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization between $1.0 to $1.15 billion, up 22% from 2020 at the mid-point
  • Adjusted earnings per sharebetween $2.40 and $3.12
  • Free Cash Flow* expected to be greater than $350 million.
“2020 was an unprecedented year, but I am proud of this company and the 6,500 members of our team that delivered solid results,” said Chemours CEO Mark Vergnano. “Our Covid-19 response plan enabled Chemours to deliver robust free cash flow as we prioritized cash and liquidity in a challenging demand environment. As the recovery gained momentum, we were ready to safely serve our customers and delivered fourth-quarter sales performance nearly equal to pre-pandemic levels.”
As previously announced, during the fourth quarter, the company completed a private offering of $800 million in aggregate principal amount of 5.750% senior unsecured notes due 2028. The proceeds of the offering, together with cash on hand were used to fund the purchase price and accrued and unpaid interest for all remaining outstanding 6.625% senior notes due 2023.

Financial summary

Chemours
Year Ended December 31,
2020
2019
2018
Net sales
$
4,969
$
5,526
$
6,638
Cost of goods sold
3,902
4,463
4,667
Gross profit
1,067
1,063
1,971
Selling, general administrative
527
548
657
R&D expense
93
80
82
Restructuring, other charges
80
87
49
Total other operating expenses
700
715
788
Equity in earnings of affiliates
23
29
43
Interest expense, net
(210)
(208)
(195)
Loss on extinguishment of debt
(22)
(38)
Other income (expense), net
21
(293)
162
Income before income taxes
179
(124)
1,155
(Provision for income taxes
(40)
(72)
159
Net income (loss)
219
(52)
996
Less: income,non-controlling interests
1
Net income (loss)
$
219
$
(52)
$
995
Per share data
Basic earnings (loss) per share
$
1.33
$
(0.32)
$
5.62
Diluted earnings (loss) per share
1.32
(0.32)
5.45
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