The Chemours Company Reports Third Quarter 2020 Results

The Chemours Company (Chemours), has announced its financial results for the third quarter 2020.

Third Quarter 2020 Results & Highlights

  • Net Sales of $1.2 billion
  • Net Income of $76 million, with EPS of $0.46
  • Adjusted Net Income of $78 million, with Adjusted EPS of $0.47
  • Adjusted EBITDA of $210 million
  • Free Cash Flow of $252 million, a $92 million improvement from prior year
  • Repaid the $300 million outstanding revolving credit facility balance
  • On October 28, 2020, the company’s Board of Directors approved a Q4 dividend of $0.25 per share, consistent with the prior quarter
  • Advanced our Corporate Responsibility Commitments (CRC) with publication of our third CRC report

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 approx. $125 million, from approx. $400 million to approx. $275 million
  • Preserving strong balance sheet, ample liquidity of $1.7 billion with no near-term senior debt maturities

«Our results in the third quarter demonstrate the progress we have made in executing our business plan and the steady recovery of the auto, architectural coatings and construction markets» said Chemours President and CEO Mark Vergnano. «Despite the COVID-19 headwinds, we continue to deliver on our cash generation strategy which supports our strong balance sheet and liquidity position. We also released our third annual CRC Report – renewing our commitment to leading the industry and our peers on a broad spectrum of ESG targets.  This document remains foundational for the company, and a key component of our long-term strategy»

Third quarter 2020 net sales were $1.2 billion in comparison to $1.4 billion in the prior-year third quarter. Results were driven by lower volumes in Fluoroproducts and Chemical Solutions and lower global average prices, partially offset by higher volumes in Titanium Technologies. Third quarter net income was $76 million, resulting in EPS of $0.46, equal to the prior year. Adjusted Net Income was $78 million, resulting in Adjusted EPS of $0.47, down $0.12 from the prior year, inclusive of a $10 million charge related to our Fayetteville facility. Adjusted EBITDA for the third quarter 2020 was $210 million in comparison to $248 million in the previous year third quarter, a result of lower volumes and prices, partially offset by stronger operational performance and lower cost on a year-over-year basis.


Fluoroproducts segment net sales in the third quarter were $533 million in comparison to $636 million in the prior year.  Volume and price declined 11% and 5%, respectively, on a year-over-year basis.  Volumes declined primarily due to demand weakness in fluoropolymer products, partially offset by nascent signs of market recovery led by increased customer demand for refrigerants, particularly in the automotive sector as original equipment manufacturers (OEMs) continued to improve production following shutdowns in the first and second quarters of 2020. Segment Adjusted EBITDA of $112 million decreased 8% versus the prior-year quarter, primarily due to lower net sales partially offset by better operational performance and cost reduction actions. Fluoroproducts segment net sales and Adjusted EBITDA in the third quarter were up 2 percent and 15 percent, respectively, on a sequential basis, primarily driven by early stages of recovery with sequential demand improvement and relative strength of demand from automotive OEMs.