The Chemours Company Reports Second Quarter 2020 Results

The Chemours Company (Chemours) (NYSE: CC), a global chemistry company with leading market positions in Fluoroproducts, Chemical Solutions and Titanium Technologies, today announced its financial results for the second quarter 2020.

Second Quarter 2020 Highlights

  • Net Sales of $1.1 billion
  • Net Income of $24 million, with EPS of $0.15
  • Adjusted Net Income of $30 million, with Adjusted EPS of $0.18
  • Adjusted EBITDA of $166 million
  • Free Cash Flow of $50 million, a $167 million improvement from prior year
  • On July 29th, the company’s board of directors approved a Q3 dividend of $0.25 per share, consistent with the prior quarter

Update on COVID-19 Response Plan

  • All Chemours sites remain operational
  • Maintaining health and safety measures across our sites
  • On target to reduce FY 2020 costs by $160 million
  • On target to reduce FY 2020 CAPEX by ~$125 million, from approx. $400 million to approx. $275 million
  • Preserving strong balance sheet, ample liquidity of $1.4 billion with no near-term senior debt maturities

Our results in the second quarter reflect disciplined execution of our cash generation strategy in spite of the significant impact of COVID-19 on global demand,” said Chemours President and CEO Mark Vergnano. “We remain focused on both our employees’ safety and fully supporting our customers’ needs.  At the same time, the team has reduced costs and improved operating efficiency through this difficult period. These efforts combined with our strong liquidity position give us tremendous confidence that we will be in a strong position to respond when market conditions improve.

Second quarter 2020 net sales were $1.1 billion in comparison to $1.4 billion in the prior-year second quarter. Results were driven primarily by lower volume across all segments. Second quarter net income was $24 million, resulting in EPS of $0.15. Adjusted Net Income was $30 million, resulting in Adjusted EPS of $0.18, down $0.54 from the prior year, inclusive of a $13 million charge related to our Fayetteville facility. Adjusted EBITDA for the second quarter 2020 was $166 million in comparison to $283 million in the previous year second quarter, a result of lower volumes and prices, idle production charges, lower fixed cost absorption and limited F-Gas quota sales, partially offset by stronger operational performance and lower cost, driven by FY2020 cost reduction plan in response to COVID-19, on year-over-year basis.

Fluoroproducts segment net sales in the second quarter were $523 million in comparison to $711 million in the prior year.  Volume and price declined 22 percent and 3 percent, respectively, on a year-over-year basis.  Lower volumes were primarily driven by the impact of COVID-19 on global automotive OEMs and industrial end-markets. Segment Adjusted EBITDA of $97 million decreased 46 percent versus the prior-year quarter, negatively impacted by higher costs driven by idle production and minimal F-gas quota sales due to illegal imports of HFC refrigerants into the EU. This was partially offset by cost reductions across the business and improved operational performance.