The Chemours Company reported lower earnings in the first quarter.
The first quarter release came after an earlier delay in year-end earnings and issues related to the timing of billing and other issues that led to the resignations of the CEO and two finance executives.
Earnings came in above the consensus estimates of the Zacks service. DuPont, which spun off Chemours several years ago, also reported higher-than-estimated earnings.
Highlights
“Net Sales for the first quarter were in line with our expectations across all three of our segments. Consolidated Adjusted EBITDA was higher than anticipated driven by the allocation of TiO2 volumes to higher-yield regions, the timing of lower-cost ore consumption, the strong execution of our TT (titanium) Transformation Plan, and lower-than-expected corporate costs,” said new Chemours CEO Denise Dignam. “TSS continued to see a strong adoption of Opteon (refrigerant) products in stationary and auto aftermarket applications combined with seasonal demand strength. The APM order book remains near its recent lows but reflects a modest recovery since year-end. We also remain focused on ramping capacity in our Performance Solutions product portfolio to serve growing opportunities, primarily in the semiconductor manufacturing market. Lastly, we delivered significant efficiencies and cost reductions through our TT Transformation Plan and remained focused on becoming one of the lowest cost TiO2 producers globally.”
- Net Sales of $1.4 billion, down 12% year-over-year
- Net Income attributable to Chemours of $52 million, or $0.34 per diluted share, compared with $145 million, or $0.96 per diluted share, in the corresponding prior-year quarter
- Adjusted EBITDA, earnings before taxes and other expenses, was $193 million, compared to $304 million in the corresponding prior-year quarter
- Cash returned to shareholders through dividends of $37 million in the quarter
Chemours is headquartered in Wilmington and has a Discovery (research) center in Newark.
