The Chemours Company (“Chemours”) (NYSE: CC), a global chemistry company with leading market positions in Titanium Technologies, Thermal & Specialized Solutions, Advanced Performance Materials, and Chemical Solutions today announces its financial results for the third quarter 2021.
Third Quarter 2021 Results & Highlights
- Net Sales of $1.7 billion, up 36% year-over-year
- Net Income of $214 million with EPS of $1.27, up $0.81 year-over-year
- Adjusted Net Income* of $214Ā million with Adjusted EPS* of $1.27, up $0.80 year-over-year
- Adjusted EBITDA* of $372 million, up 77% year-over-year, resulting in Free Cash Flow of $244 million
- Repurchased $67 million of common stockĀ during the quarter, repaid $108 million of debt principal, and funded $100 million escrow payment as per the MOU agreement
- U.S. EPA established final rules for the phasedown of HFC refrigerants under the U.S. AIM Act designed to accelerate widespread use of climate friendly and energy efficient alternatives such as our low global warming potential Opteonā¢ solutions
- On October 27, 2021, the company’s Board of Directors approved a fourth quarter dividend of $0.25 per share, consistent with the prior quarter
2021 Revised Outlook
- Adjusted EBITDA* between $1,300 million and $1,340 million, vs. prior guidance in the top-end of $1,100 million to $1,250 million range
- Adjusted EPS* between ~$3.93 and $4.13 vs. prior guidance in the top-end of ~$2.84 to $3.56 range
- Free Cash Flow* now expected to be greater than $500 million vs. prior outlook of greater than $450 million.Ā Capex guidance lowered to ~$325 million from ~$350 million previously, mainly driven by timing of projects
“The Chemours team continues to demonstrate resilience along with a renewed focus on sustainable growth of our key businesses. We have met every challenge head on, continue to prioritize and serve our customers, and uphold our commitments to all stakeholders despite the difficult operating environment,” said Chemours President and CEO Mark Newman. “Our strong top line, bottom line and cash results in the quarter demonstrate the strength of this business and the progress we are making towards better quality of earnings and higher shareholder returns. I am confident that we have the right business strategies, an inspired group of leaders and empowered employees to consistently deliver across cycles and over time.”
Third quarter 2021 Net Sales were $1.7 billion, 36% higher than the prior-year quarter. 25% volume growth was the primary driver of the better year-over-year sales performance with positive contributions from every segment. 11% higher pricing and 1% favorable currency translation more than offset a 1% portfolio impact stemming from the exit of our Aniline business in the fourth quarter 2020. The 2% sequential sales improvement was driven primarily by strengthening pricing trends across the portfolio. Volume declined 2% quarter-over-quarter as strong market demand in most product categories was offset by certain customer production constraints, raw material availability, and typical seasonal factors across different parts of the portfolio.
Third quarter Net Income was $214Ā million, orĀ $1.27 of EPS. Adjusted Net Income was $214 million. Adjusted EPS was $1.27, up $0.80 vs. the prior-year quarter. Adjusted EBITDA for the third quarter 2021 was $372 million in comparison to $210 million in the prior-year third quarter, a result of higher volume, pricing and a favorable currency impact, partially offset by incremental cost headwinds associated with higher plant fixed costs to increase production to meet higher demand, raw material inflation, and higher performance-related compensation expense.
Thermal & Specialized Solutions
Supporting customers through the transition to low GWP Opteonā¢ solutions
Thermal & Specialized Solutions (TSS) segment Net Sales in the third quarter were $318 million, a 9% increase vs. the prior-year quarter.Ā In the quarter Opteonā¢ adoption continued across all markets, but end-market demand in automotive OEM was impacted by continued semiconductor supply chain constraints. Segment volume improved 1% year-over-year driven by growth and strong demand in refrigerants across most regions, offset by headwinds from constrained automotive demand. Segment price increased 7% year-over-year and 6% sequentially as actions were implemented to offset inflationary headwinds. Currency was a 1% year-over-year benefit in the period. Segment Adjusted EBITDA of $105 million was flat vs. the prior-year quarter as higher sales were offset by unfavorable mix, raw material inflation, and increased logistics expense. As a result, Adjusted EBITDA margins of 33% declined 300bps year-over-year from 36% in the prior-year period. As new regulations from the U.S. AIM actĀ come into effect in January 2022, TSS is well positioned to help the customers transition from HFC refrigerants to low GWP Opteonā¢ solutions.
