The Chemours Company reported a sharp increase in earnings during the first quarter.
- Net Sales of $1.8 billion, up 23% year-over-year
- Net Income of $234 million with earnings per share of $1.43, up 86¢ year-over-year
- Adjusted earnings before taxes, depreciation, and interest of $403 million, up 50% year-over-year
- The company’s board approving a second quarter dividend of $25¢ a share.
- Completing $146 million of share repurchases in the quarter and approved a new share repurchase authorization of $750 million
Chemours is based in Wilmington and has a research center at the University of Delaware STAR Campus.
“Our outstanding first quarter performance reflects the structural improvements we have made in our three industry-leading businesses and the long-term secular growth trends underway in our TSS (refrigerants) and APM (performance materials) segments,” said Chemours CEO Mark Newman. “In our TT (titanium) segment, we continue to manage through ore challenges, which we now believe will continue into the second half of 2022, while serving our TVS contracted customers and supporting their growth. Our businesses continue to perform well against strong customer demand and are positioned to grow in 2022, despite the global economic uncertainties, exacerbated by the conflict in Ukraine and ongoing Covid-19 related lockdowns in China.”.
As of March 31, 2022, consolidated gross debt was $3.7 billion. Debt, net of $1.1 billion cash, was $2.6 billion.
Cash provided by operating activities for the first quarter of 2022 was $2 million vs. $39 million in the prior-year quarter. Capital expenditures for the first quarter of 2022 were $106 million compared to $60 million in the prior-year first quarter.
FY 2022 Adjusted EBITDA is now expected to be between $1.475 billion and $1.575 billion vs. prior guidance of between $1.3 billion and $1.425 billion. Free cash flow is expected to be greater than $550 million vs. prior guidance of greater than $500 million.
Newman added, “I’m proud of the way our global team continues to innovate and collaborate to meet strong customer demand despite persistent supply chain challenges.”