Chemours reported higher-than-forecast sales and earnings per share in the third quarter as the company saw weaker demand in its titanium business in Asia and Europe and strength in its other businesses.
Earnings and sales beat Zacks consensus estimates.
Chemours is headquartered in Wilmington and operates a research center (Discovery Hub) in Newark.
Highlights
- Net Sales of $1.8 billion, up 6% year-over-year
- Net Income of $240 million with earnings per share of $1.52, up $0.25 year-over-year
- Free Cash Flow of $229 million
- Completed $79 million of share repurchases in the quarter; and $351 million of repurchases year-to-date as of Sept. 30, 2022
- Announced planned $200 million investment in Nafion™ manufacturing capacity to support green hydrogen growth
- Announced plans to enter into a Joint Venture with BWT/FUMATECH to develop heavy-duty fuel cell membranes, subject to regulatory approval
- On October 25, the company’s Board of Directors approved a fourth-quarter dividend of $0.25 per share, consistent with the prior quarter
“Our Thermal & Specialized Solutions (TSS) (refrigerants) and Advanced Performance Materials segments continued to deliver strong results despite macroeconomic headwinds and are both poised to set full-year records,” said Mark Newman, Chemours CEO. “In APM, we delivered our third straight record quarter and expect our announced Nafion capacity expansion and Joint Venture with BWT/FUMATECH to support long-term growth in the hydrogen electrolyzer and fuel cell space. In TSS, we had a record 3Q for the business, and continue to lead the global transition to low-GWP thermal management solutions. Strength in APM and TSS drove the majority of our earnings, and helped to offset the headwinds in our Titanium Technologies segment. I’d like to thank all of our global employees for remaining focused on serving our customers and finishing the year strong in a time of increasing uncertainty.”
Third quarter 2022 sales were $1.8 billion, 6% higher than the prior-year quarter as price increases offset other factors.
Third quarter net income was $240 million Adjusted net income was $196 million. Adjusted EBITDA (earnings before taxes and other expenses) for the third quarter of 2022 declined (2)% to $363 million in comparison to $372 million in the prior-year third quarter.
As previously announced, Adjusted EBITDA for fiscal 2022 is expected to be between $1.40 billion and $1.45 billion. Free cash flow is expected to be greater than $575 million.
“Looking ahead, we believe we have the best assets, team, and strategy to continue to deliver strong performance through the economic cycle and create value for our stakeholders, despite the macroeconomic uncertainty. We remain focused on our four key priorities to enhance shareholder value, and on delivering another solid year of financial results,” Newman stated.
