Chemours posts loss in 2023

Chemours Company reported a loss in the fourth quarter and 2023, due to the impact of legal settlements.

Fourth qauarter 2023 results

• Net Sales of $1.4 billion, up 2% year-over-year
• Net Loss attributable to Chemours of $18 million, or a loss of $0.12 per diluted share
• Adjusted Net Income, which primarily excludes $62 million ($89 million pre-tax) in litigation settlement charges, was $46 million, compared to $480 thousand in the corresponding prior-year quarter
• Adjusted Net Income per diluted share of $0.31, compared to $0.00 per diluted share in the corresponding prior-year quarter
• Adjusted EBITDA (earnings before interest and other expenses) which primarily excludes litigation settlement charges of $89 million, was $176 million, compared to $120 million in the corresponding prior-year quarter
• Operating cash flow of $482 million and capital expenditures of $135 million

Full year 2023 results

• Net Sales of $6.0 billion, down 11% year-over-year
• Net Loss attributable to Chemours of $238 million, or a loss of $1.60 per share
• Adjusted Net Income, which primarily excludes $639 million ($764 million pre-tax) in litigation settlement charges, was $425 million, compared to $738 million in the prior year
• Adjusted Net Income per diluted share of $2.82, compared to $4.66 per diluted share in the prior year
• Adjusted EBITDA, which primarily excludes litigation settlement charges of $764 million, was $1.0 billion, compared to $1.4 billion in the prior year
• Operating Cash Flow of $556 million and capital expenditures of $370 million

“Chemours navigated a challenging year in 2023 that included prolonged destocking in certain key end markets, and these headwinds impacted our overall financial performance,” said Chemours new CEO Denise Dignam. “Our fourth quarter performance reflected continued growth for our low global warming potential refrigerants in our Thermal & Specialized Solutions segment, double-digit growth in the Performance Solutions portfolio of our Advanced Performance Materials segment, and improved demand for titanium dioxide across most regions in the Titanium Technologies segment. Over the course of the year, we realized meaningful cost savings from our Titanium Technologies Transformation Plan, continued our investments in growth markets in Thermal & Specialized Solutions and Advanced Performance Materials, and made significant progress resolving certain legacy issues.”

Additionally, on Feb. 26 the company received court approval for the previously announced comprehensive settlement of PFAS-related drinking water claims of a defined class of U.S. public water systems, subject to reaching final judgment under the settlement agreement, of which Chemours’ share totals $592 million. This amount is reflected in other accrued liabilities as of December 31, 2023. The Company also has restricted cash and restricted cash equivalents of $603 million related to this matter on its balance sheet as of Dec. 31, 2023.

Segment Results

Titanium Technologies (TT)

Thermal & Specialized Solutions (TSS)

Advanced Performance Materials (APM)

As of Dec. 31, 2023, consolidated gross debt was $4.1 billion. Debt, net of $1.2 billion in cash, was $2.9 billion.. Total liquidity was $2.1 billion, comprised of $1.2 billion in unrestricted cash and cash equivalents, and $0.9 billion of revolving credit facility capacity, net of outstanding letters of credit. In addition, Chemours maintained $604 million in restricted cash and restricted cash equivalents, primarily held in the Water District Settlement Fund per the terms of the U.S. public water system settlement.

For the first quarter 2024, Chemours expects consolidated net sales to be flat to slightly down, with consolidated adjusted EBITDA down approximately 10% compared with fourth quarter 2023 results.