The Chemours Company (“Chemours” or “the Company”) (NYSE: CC), a
global leader in delivering innovative performance chemistry
through Titanium Technologies (“TT”), Thermal & Specialized
Solutions (“TSS”), and Advanced Performance Materials (“APM”),
today announced its financial results for the second quarter
2024.
Key Second Quarter 2024 Results & Highlights
- Net Sales of $1.5 billion, down 6% year-over-year
- Net Income attributable to Chemours of $70 million, or $0.46
per diluted share, compared with a Net Loss attributable to
Chemours of $376 million, or $2.52 per diluted share, in the
corresponding prior-year quarter
- Adjusted Net Income1 of $57 million, or $0.38 per diluted
share, compared with $167 million, or $1.10 per diluted share, in
the corresponding prior-year quarter
- Adjusted EBITDA1,2 of $206 million compared to $324 million in
the corresponding prior-year quarter
- Cash flows used in operations were $620 million, reflecting the
usage of $606 million from previously funded restricted cash and
restricted cash equivalents designated for the now complete, U.S.
Water District Settlement Agreement; capital expenditures of $73
million
- Cash returned to shareholders through dividends of $38 million
in the quarter
- Received permit to expand Teflon™ PFA resin production under
APM Performance Solutions; a critical material for semiconductor
manufacturing
“Second-quarter Net Sales were in line with expectations, yet
Adjusted EBITDA fell short due to persistently high HFC inventory
levels in the market and marginally higher corporate expenses. We
exceeded our 15% sequential volume growth target in TT despite a
three-week unplanned shutdown of our Altamira facility, which is
now operational, maintaining our customer commitments with
contingency plans in place,” said Chemours CEO Denise Dignam.
“Demand for our Opteon™ Refrigerants remains strong in stationary
and automotive aftermarket end-markets, while our APM business is
starting to reflect modest strength amid recent macroeconomic
weakness. Additionally, the appointment of Shane Hostetter as our
new CFO strengthens our leadership team with his strong background
in capital allocation and strategic execution, further advancing
our commitment to creating shareholder value through our
innovation-led growth initiatives across each of our businesses. As
part of our growth focus in APM Performance Solutions, we recently
received our permit to expand production for Teflon™ PFA – a
critical material supporting semiconductor manufacturing.”
Total Chemours
Q2 2024
Q2 2023
Y-o-Y % ∆
Q1 2024
Q-o-Q % ∆
Net Sales (millions)
$1,538
$1,643
(6)%
$1,350
14%
Adjusted EBITDA1,2 (millions)
$206
$324
(36)%
$193
7%
Second quarter 2024 Net Sales of $1.5 billion were 6% lower than
the prior-year quarter, reflecting a 1% increase in volume, coupled
with a 6% decline in price, while portfolio and currency impacts
both separately posed a slight 1% headwind.
Second quarter 2024 Net Income attributable to Chemours was $70
million, or $0.46 per diluted share, compared to Net Loss
attributable to Chemours of $376 million in the prior-year quarter.
Adjusted EBITDA for the second quarter of 2024 was $206 million,
compared to $324 million in the prior-year quarter. Adjusted EBITDA
declines were driven by lower pricing and to a lesser degree
currency, higher costs and portfolio changes, partially offset by
increased volumes.
Titanium Technologies
Q2 2024
Q2 2023
Y-o-Y % ∆
Q1 2024
Q-o-Q % ∆
Net Sales (millions)
$673
$707
(5)%
$588
14%
Adjusted EBITDA (millions)
$80
$87
(8)%
$70
14%
Adjusted EBITDA Margin
12%
12%
0 ppt
12%
0 ppt
TT segment second quarter 2024 Net Sales were $673 million, down
5% compared to the second quarter 2023. The decrease in Net Sales
was driven by declines in price of 7% and currency of 1%, partially
offset by a 3% increase in volume. Volume growth compared to the
prior-year was driven by stronger demand in Asia Pacific (excluding
China) and North America, despite the unplanned downtime at our
Altamira, Mexico manufacturing site due to the extreme drought in
the region.
Versus the prior-year quarter, Adjusted EBITDA decreased 8% to
$80 million with Adjusted EBITDA Margins remaining flat at 12%, as
pricing declines were offset by cost reductions from the TT
Transformation Plan. Second quarter costs associated with the
unplanned downtime at our Altamira manufacturing site approximated
$8 million.
On a sequential basis, Net Sales increased by 14%, driven by a
16% rise in volume exceeding expectations, while pricing and
currency each presented a slight 1% headwind.
Thermal & Specialized Solutions
Q2 2024
Q2 2023
Y-o-Y % ∆
Q1 2024
Q-o-Q % ∆
Net Sales (millions)
$513
$523
(2)%
$449
14%
Opteon™ Refrigerants
$227
$200
14%
$200
14%
Freon™ Refrigerants
$173
$226
(23)%
$173
0%
Foam, Propellants & Other
$113
$97
16%
$76
49%
Adjusted EBITDA (millions)
$161
$214
(25)%
$151
7%
Adjusted EBITDA Margin
31%
41%
(10) ppts
34%
(3) ppts
TSS segment second quarter 2024 Net Sales were $513 million,
down 2% compared to the second quarter 2023. The decrease in Net
Sales was driven by declines in price of 4%, partially offset by
increased volume of 2%, with currency impact flat. Lower TSS
pricing was driven by the Freon™ Refrigerants portfolio due to
elevated HFC inventory levels on the market and a slower
commencement of the cooling season, partially offset by stronger
Opteon™ Refrigerants pricing consistent with stronger stationary
adoption. Increased volumes were due to volume expansion in the
Opteon™ Refrigerants portfolio as a result of the continued
adoption in stationary and automotive end-markets, supported by
propellant strength in the Foam, Propellants and Other portfolio
partially offset by declines in the Freon™ Refrigerants
portfolio.
Versus the prior-year quarter, Adjusted EBITDA decreased 25% to
$161 million, with Adjusted EBITDA Margin down 10 percentage points
to 31%. This decline was primarily driven by lower pricing,
increased costs to secure additional near-term quota allowances and
reduced fixed cost absorption in our Freon™ Refrigerants production
in connection with lower HFC demand due to regulatory step downs
under the U.S. AIM Act and the EU F-Gas regulation.
On a sequential basis, Net Sales increased by 14%, driven by
higher volume of 17% partially offset by lower pricing of 3%, with
currency impact flat. This increase in volumes was reflective of
seasonal trends in refrigerants further supported by increased
propellant demand in the Foam, Propellants and Other portfolio.
Advanced Performance Materials
Q2 2024
Q2 2023
Y-o-Y % ∆
Q1 2024
Q-o-Q % ∆
Net Sales (millions)
$339
$387
(12)%
$299
13%
Advanced Materials
$206
$247
(17)%
$186
11%
Performance Solutions
$133
$140
(5)%
$113
18%
Adjusted EBITDA (millions)
$45
$81
(44)%
$30
50%
Adjusted EBITDA Margin
13%
21%
(8) ppts
10%
3 ppts
APM segment second quarter 2024 Net Sales were $339 million,
down 12% compared to the second quarter 2023. This decrease was
driven by declines in price, volume and currency of 7%, 4% and 1%
respectively. The price decline was primarily driven by softer
market dynamics across the Advanced Materials portfolio and product
mix across the Performance Solutions portfolio compared to the
previous year. Volume declines were concentrated in the Advanced
Materials portfolio due to weaker demand in more economically
sensitive end markets.
Versus the prior-year quarter, Adjusted EBITDA decreased 44% to
$45 million, with Adjusted EBITDA Margin down 8 percentage points
to 13%. This was primarily driven by lower pricing and
currency.
On a sequential basis, Net Sales rose by 13%, driven by a 16%
increase in volume, partly offset by lower pricing of 2% and a 1%
currency headwind. These gains were primarily influenced by a
modest recovery in economically sensitive end markets across the
portfolio.
Other Segment
The Performance Chemicals and Intermediates business in the
Company’s Other Segment had Net Sales and Adjusted EBITDA for the
second quarter 2024 of $13 million and $3 million,
respectively.
Corporate Expenses3
Corporate Expenses were a $77 million offset to Adjusted EBITDA
in the second quarter 2024, up $14 million versus the prior-year
quarter. This increase was primarily related to costs associated
with addressing material weaknesses in internal controls over
financial reporting and the implementation of recommendations
stemming from the Audit Committee's Internal Review.
Liquidity
As of June 30, 2024, consolidated gross debt was $4.0 billion.
Debt, net of $604 million in unrestricted cash and cash
equivalents, was $3.4 billion, resulting in a net leverage ratio of
approximately 4.4x times on a trailing twelve-month Adjusted EBITDA
basis. Total liquidity was $1.5 billion, comprised of $604 million
in unrestricted cash and cash equivalents and $852 million of
revolving credit facility capacity, net of outstanding letters of
credit.
Operating cash usage in the second quarter of 2024 totaled $620
million, an increased usage of $687 million compared to the
prior-year quarter. This higher usage of operating cash flow
reflects the outflow of $606 million in restricted cash and cash
equivalents, which represented the Company’s prior contribution
made in 2023, including interest, to the Water District Settlement
Fund. The judgment under the U.S. Public Water System Settlement
Agreement became final in May 2024, resulting in the Company
concurrently transferring its reversionary interest in this fund,
derecognizing the associated accrued liability. Capital
expenditures for the second quarter of 2024 amounted to $73
million, compared to $58 million in the prior-year quarter. During
the quarter, the Company paid $38 million in dividends to
shareholders.
Outlook
The Company anticipates a low to mid-single digit sequential
decline in Net Sales for the third quarter, reflective of:
- Residual impacts from Q2 unplanned downtime at our Altamira,
Mexico manufacturing site in TT
- Refrigerant seasonality paired with weaker Freon™ Refrigerants
pricing in TSS
- A continued modest recovery in APM
These core Net Sales assumptions for the third quarter also
project continued strong adoption of Opteon™ Refrigerants, with
anticipated double-digit year-over-year growth, and APM’s
Performance Solutions portfolio showing strong year-over-year
growth.
Additionally, the Company anticipates a high-single digit
sequential decline in Adjusted EBITDA for the third quarter,
reflecting approximately $15 to $20 million of costs related to the
unplanned shutdown at Altamira. Corporate expenses are expected to
be lower on a sequential basis as efforts around controls
remediation continue but with costs concentrated in the first
half.
Conference Call
As previously announced, Chemours will hold a conference call
and webcast on August 2, 2024, at 8:00 AM Eastern Daylight Time.
Access to the webcast and materials can be accessed by visiting the
Events & Presentations page of Chemours’ investor website,
investors.chemours.com. A webcast replay of the conference call
will be available on Chemours’ investor website.
____________________ 1 Non-GAAP measures, including Adjusted Net
Income, Adjusted EPS and Adjusted EBITDA referred to throughout,
principally exclude the impact of recent litigation settlements for
legacy environmental matters and associated fees, in addition to
other unallocated items – please refer to the attached
"Reconciliation of GAAP Financial Measures to Non-GAAP Financial
Measures (Unaudited)”. 2 Adjusted EBITDA excludes net income
attributable to noncontrolling interests, net interest expense,
depreciation and amortization, and all remaining provision for
income taxes from Adjusted Net Income. See the corresponding
reconciliation referenced in footnote #1. 3 Consolidated Adjusted
EBITDA also reflect additional unallocated costs of $5 million and
$6 million in Q1 2024 and Q2 2024, respectively. These costs are
reflected in consolidated Adjusted EBITDA results only.
About The Chemours Company
The Chemours Company (NYSE: CC) is a global leader in providing
industrial and specialty chemicals products for markets, including
coatings, plastics, refrigeration and air conditioning,
transportation, semiconductor and advanced electronics, general
industrial, and oil and gas. Through our three businesses –
Titanium Technologies, Thermal & Specialized Solutions, and
Advanced Performance Materials – we deliver application expertise
and chemistry-based innovations that solve customers’ biggest
challenges. Our flagship products are sold under prominent brands
such as Ti-Pure™, Opteon™, Freon™, Nafion™, Teflon™, Viton™, and
Krytox™. Headquartered in Wilmington, Delaware and listed on the
NYSE under the symbol CC, Chemours has approximately 6,100
employees and 28 manufacturing sites and serves approximately 2,700
customers in approximately 110 countries.
For more information, visit chemours.com or follow us on X
(formerly Twitter) @Chemours or LinkedIn.
Non-GAAP Financial Measures
We prepare our financial statements in accordance with Generally
Accepted Accounting Principles (GAAP). Within this press release,
we may make reference to Adjusted Net Income, Adjusted EPS,
Adjusted EBITDA, Total Debt Principal, Net and Net Leverage Ratio
which are non-GAAP financial measures. The Company includes these
non-GAAP financial measures because management believes they are
useful to investors in that they provide for greater transparency
with respect to supplemental information used by management in its
financial and operational decision making. Management uses Adjusted
Net Income, Adjusted EPS and Adjusted EBITDA, which adjust for (i)
certain non-cash items, (ii) certain items we believe are not
indicative of ongoing operating performance or (iii) certain
nonrecurring, unusual or infrequent items to evaluate the Company's
performance in order to have comparable financial results to
analyze changes in our underlying business from period to period.
Additionally, Total Debt Principal, Net and Net Leverage Ratio are
utilized as liquidity measures to assess the cash generation of our
businesses and on-going liquidity position.
Accordingly, the Company believes the presentation of these
non-GAAP financial measures, when used in conjunction with GAAP
financial measures, is a useful financial analysis tool that can
assist investors in assessing the Company's operating performance
and underlying prospects. This analysis should not be considered in
isolation or as a substitute for analysis of our results as
reported under GAAP. This analysis, as well as the other
information in this press release, should be read in conjunction
with the Company's financial statements and footnotes contained in
the documents that the Company files with the U.S. Securities and
Exchange Commission. The non-GAAP financial measures used by the
Company in this press release may be different from the methods
used by other companies. The Company does not provide a
reconciliation of forward-looking non-GAAP financial measures to
the most directly comparable GAAP reported financial measures on a
forward-looking basis because it is unable to predict with
reasonable certainty the ultimate outcome of unusual gains and
losses, potential future asset impairments and pending litigation
without unreasonable effort. These items are uncertain, depend on
various factors, and could have a material impact on GAAP reported
results for the guidance period. For more information on the
non-GAAP financial measures, please refer to the attached schedules
or the table, "Reconciliation of GAAP Financial Measures to
Non-GAAP Financial Measures (Unaudited)" and materials posted to
the Company's website at investors.chemours.com.
Forward-Looking Statements
This press release contains forward-looking statements, within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, which involve
risks and uncertainties. Forward-looking statements provide current
expectations of future events based on certain assumptions and
include any statement that does not directly relate to a historical
or current fact. The words "believe," "expect," "will,"
"anticipate," "plan," "estimate," "target," "project" and similar
expressions, among others, generally identify "forward-looking
statements," which speak only as of the date such statements were
made. These forward-looking statements may address, among other
things, guidance on Company and segment performance for the third
quarter of 2024. Forward-looking statements are based on certain
assumptions and expectations of future events that may not be
accurate or realized, such as guidance relying on models based upon
management assumptions regarding future events that are inherently
uncertain. These statements are not guarantees of future
performance. Forward-looking statements also involve risks and
uncertainties including the outcome or resolution of any pending or
future environmental liabilities, the commencement, outcome or
resolution of any regulatory inquiry, investigation or proceeding,
the initiation, outcome or settlement of any litigation,
remediation of material weaknesses and internal control over
financial reporting, changes in environmental regulations in the
U.S. or other jurisdictions that affect demand for or adoption of
our products, anticipated future operating and financial
performance for our segments individually and our company as a
whole, business plans, prospects, targets, goals and commitments,
capital investments and projects and target capital expenditures,
plans for dividends or share repurchases, sufficiency or longevity
of intellectual property protection, cost reductions or savings
targets, plans to increase profitability and growth, our ability to
develop and commercialize new products or technologies and obtain
necessary regulatory approvals, our ability to make acquisitions,
integrate acquired businesses or assets into our operations, and
achieve anticipated synergies or cost savings, all of which are
subject to substantial risks and uncertainties that could cause
actual results to differ materially from those expressed or implied
by such statements. These statements also may involve risks and
uncertainties that are beyond Chemours' control. Matters outside
our control, including general economic conditions, geopolitical
conditions and global health events and weather events, have
affected or may affect our business and operations and may or may
continue to hinder our ability to provide goods and services to
customers, cause disruptions in our supply chains such as through
strikes, labor disruptions or other events, adversely affect our
business partners, significantly reduce the demand for our
products, adversely affect the health and welfare of our personnel
or cause other unpredictable events. Additionally, there may be
other risks and uncertainties that Chemours is unable to identify
at this time or that Chemours does not currently expect to have a
material impact on its business. Factors that could cause or
contribute to these differences include the risks, uncertainties
and other factors discussed in our filings with the U.S. Securities
and Exchange Commission, including in our Quarterly Report on Form
10-Q for the quarter ended June 30, 2024, and in our Annual Report
on Form 10-K for the year ended December 31, 2023. Chemours assumes
no obligation to revise or update any forward-looking statement for
any reason, except as required by law.
The Chemours Company
Consolidated Statements of
Operations (Unaudited)
(Dollars in millions, except per
share amounts)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net sales
$
1,538
$
1,643
$
2,887
$
3,179
Cost of goods sold
1,232
1,233
2,294
2,401
Gross profit
306
410
593
778
Selling, general, and administrative
expense
139
779
281
903
Research and development expense
26
28
53
54
Restructuring, asset-related, and other
charges
3
(1
)
7
15
Total other operating expenses
168
806
341
972
Equity in earnings of affiliates
11
13
23
25
Interest expense, net
(66
)
(48
)
(128
)
(90
)
Other (expense) income, net
(1
)
(2
)
2
(1
)
Income (loss) before income
taxes
82
(433
)
149
(260
)
Provision for (benefit from) income
taxes
12
(57
)
28
(30
)
Net income (loss)
70
(376
)
121
(230
)
Less: Net income attributable to
non-controlling interests
—
—
—
1
Net income (loss) attributable to
Chemours
$
70
$
(376
)
$
121
$
(231
)
Per share data
Basic earnings (loss) per share of common
stock
$
0.47
$
(2.52
)
$
0.81
$
(1.55
)
Diluted earnings (loss) per share of
common stock
0.46
(2.52
)
0.81
(1.55
)
The Chemours Company
Consolidated Balance Sheets
(Unaudited)
(Dollars in millions, except per
share amounts)
June 30, 2024
December 31, 2023
Assets
Current assets:
Cash and cash equivalents
$
604
$
1,203
Restricted cash and restricted cash
equivalents
15
604
Accounts and notes receivable, net
896
610
Inventories
1,368
1,352
Prepaid expenses and other
54
66
Total current assets
2,937
3,835
Property, plant, and equipment
9,440
9,412
Less: Accumulated depreciation
(6,283
)
(6,196
)
Property, plant, and equipment, net
3,157
3,216
Operating lease right-of-use assets
251
260
Goodwill
102
102
Other intangible assets, net
3
3
Investments in affiliates
169
158
Other assets
630
677
Total assets
$
7,249
$
8,251
Liabilities
Current liabilities:
Accounts payable
$
938
$
1,159
Compensation and other employee-related
cost
73
89
Short-term and current maturities of
long-term debt
37
51
Current environmental remediation
127
129
Other accrued liabilities
382
1,058
Total current liabilities
1,557
2,486
Long-term debt, net
3,951
3,987
Operating lease liabilities
195
206
Long-term environmental remediation
453
461
Deferred income taxes
41
44
Other liabilities
327
328
Total liabilities
6,524
7,512
Commitments and contingent liabilities
Equity
Common stock (par value $0.01 per share;
810,000,000 shares authorized; 198,141,762 shares issued and
149,252,314 shares outstanding at June 30, 2024; 197,519,784 shares
issued and 148,587,397 shares outstanding at December 31, 2023)
2
2
Treasury stock, at cost (48,889,448 shares
at June 30, 2024 and 48,932,387 at December 31, 2023)
(1,805
)
(1,806
)
Additional paid-in capital
1,045
1,033
Retained earnings
1,828
1,782
Accumulated other comprehensive loss
(347
)
(274
)
Total Chemours stockholders’ equity
723
737
Non-controlling interests
2
2
Total equity
725
739
Total liabilities and equity
$
7,249
$
8,251
The Chemours Company
Consolidated Statements of
Cash Flows (Unaudited)
(Dollars in millions)
Six Months Ended June
30,
2024
2023
Cash flows from operating
activities
Net income (loss)
$
121
$
(231
)
Adjustments to reconcile net income to
cash used for operating activities:
Depreciation and amortization
145
157
Gain on sales of assets and businesses
(3
)
—
Equity in earnings of affiliates, net
(20
)
(21
)
Amortization of debt issuance costs and
issue discounts
6
4
Deferred tax benefit
(12
)
(71
)
Asset-related charges
—
11
Stock-based compensation expense
7
7
Net periodic pension cost
2
4
Defined benefit plan contributions
(7
)
(7
)
Other operating charges and credits,
net
(18
)
(5
)
Decrease (increase) in operating
assets:
Accounts and notes receivable, net
(289
)
(261
)
Inventories and other current operating
assets
(15
)
(17
)
Other non-current operating assets
52
43
(Decrease) increase in operating
liabilities:
Accounts payable
(178
)
(209
)
Other current operating liabilities
(690
)
530
Other non-current operating
liabilities
(11
)
9
Cash used for operating activities
(910
)
(57
)
Cash flows from investing
activities
Purchases of property, plant, and
equipment
(175
)
(149
)
Proceeds from sales of assets and
businesses
3
(8
)
Foreign exchange contract settlements,
net
(1
)
—
Other investing activities
2
—
Cash used for investing activities
(171
)
(157
)
Cash flows from financing
activities
Debt repayments
(5
)
(6
)
Payments on finance leases
(6
)
(6
)
Proceeds from supplier financing
program
47
47
Payments to supplier financing program
(61
)
(48
)
Purchases of treasury stock, at cost
—
(51
)
Proceeds from exercised stock options,
net
8
9
Payments related to tax withholdings on
vested stock awards
(3
)
(18
)
Payments of dividends to the Company's
common shareholders
(74
)
(75
)
Cash received from non-controlling
interest shareholder
—
1
Cash used for financing activities
(94
)
(147
)
Effect of exchange rate changes on cash,
cash equivalents, restricted cash and restricted cash
equivalents
(13
)
2
Decrease in cash, cash equivalents,
restricted cash and restricted cash equivalents
(1,188
)
(359
)
Cash, cash equivalents, restricted cash
and restricted cash equivalents at January 1,
1,807
1,304
Cash, cash equivalents, restricted cash
and restricted cash equivalents at June 30,
$
619
$
945
Supplemental cash flows
information
Non-cash investing and financing
activities:
Purchases of property, plant, and
equipment included in accounts payable
$
44
$
53
Treasury Stock repurchased, not
settled
—
1
Certain prior period amounts have been revised to correct for
certain immaterial errors related to the financial statement
presentation of a supplier financing program, which is more fully
described in our Annual Report on Form 10-K for the year ended
December 31, 2023. Certain prior period amounts have been
reclassified to conform to the current period presentation, the
effect of which was not material to the Company’s interim
consolidated financial statements.
The Chemours Company
Segment Financial and
Operating Data (Unaudited)
(Dollars in millions)
Segment Net Sales
Three Months
Ended
Sequential
Three Months Ended June
30,
Increase /
March 31,
Increase /
2024
2023
(Decrease)
2024
(Decrease)
Titanium Technologies
$
673
$
707
$
(34
)
$
588
$
85
Thermal & Specialized Solutions
513
523
(10
)
449
64
Advanced Performance Materials
339
387
(48
)
299
40
Other Segment
13
26
(13
)
14
(1
)
Total Net Sales
$
1,538
$
1,643
$
(105
)
$
1,350
$
188
Segment Adjusted EBITDA
Three Months
Ended
Sequential
Three Months Ended June
30,
Increase /
March 31,
Increase /
2024
2023
(Decrease)
2024
(Decrease)
Titanium Technologies
$
80
$
87
$
(7
)
$
70
$
10
Thermal & Specialized Solutions
$
161
$
214
$
(53
)
$
151
$
10
Advanced Performance Materials
$
45
$
81
$
(36
)
$
30
$
15
Other Segment
$
3
$
5
$
(2
)
$
2
$
1
Quarterly Change in Net Sales from the
three months ended June 30, 2023
June 30, 2024
Percentage Change vs.
Percentage Change Due
To
Net Sales
June 30, 2023
Price
Volume
Currency
Portfolio
Total Company
$
1,538
(6
)%
(6
)%
1
%
—
%
(1
)%
Titanium Technologies
$
673
(5
)%
(7
)%
3
%
(1
)%
—
%
Thermal & Specialized Solutions
513
(2
)%
(4
)%
2
%
—
%
—
%
Advanced Performance Materials
339
(12
)%
(7
)%
(4
)%
(1
)%
—
%
Other Segment
13
(50
)%
(5
)%
2
%
—
%
(47
)%
Quarterly Change in Net Sales from the
three months ended March 31, 2024
June 30, 2024
Percentage Change vs.
Percentage Change Due
To
Net Sales
March 31, 2024
Price
Volume
Currency
Portfolio
Total Company
$
1,538
14
%
(2
)%
16
%
—
%
—
%
Titanium Technologies
$
673
14
%
(1
)%
16
%
(1
)%
—
%
Thermal & Specialized Solutions
513
14
%
(3
)%
17
%
—
%
—
%
Advanced Performance Materials
339
13
%
(2
)%
16
%
(1
)%
—
%
Other Segment
13
(7
)%
1
%
(8
)%
—
%
—
%
The Chemours Company Reconciliation
of GAAP Financial Measures to Non-GAAP Financial Measures
(Unaudited) (Dollars in millions)
GAAP Net Income (Loss)
Attributable to Chemours to Adjusted Net Income and Adjusted EBITDA
Reconciliation GAAP Net
Leverage Ratio to Non-GAAP Net Leverage Ratio
Reconciliation
Adjusted earnings before interest, taxes, depreciation, and
amortization (“Adjusted EBITDA”) is defined as income (loss) before
income taxes, excluding the following items: interest expense,
depreciation, and amortization; non-operating pension and other
post-retirement employee benefit costs, which represents the
components of net periodic pension costs excluding the service cost
component; exchange (gains) losses included in other income
(expense), net; restructuring, asset-related, and other charges;
(gains) losses on sales of businesses or assets; and, other items
not considered indicative of the Company’s ongoing operational
performance and expected to occur infrequently, including certain
litigation related and environmental charges and Qualified Spend
reimbursable by DuPont and/or Corteva as part of the Company's
cost-sharing agreement under the terms of the MOU that were
previously excluded from Adjusted EBITDA. Adjusted Net Income is
defined as net income (loss) attributable to Chemours, adjusted for
items excluded from Adjusted EBITDA, except interest expense,
depreciation, amortization, and certain provision for (benefit
from) income tax amounts. Net Leverage Ratio is defined as our
total debt principal, net, or our total debt principal outstanding
less unrestricted cash and cash equivalents, divided by Adjusted
EBITDA.
Three Months Ended
Six Months Ended
Twelve Months Ended
June 30,
March 31,
June 30,
June 30,
2024
2023
2024
2024
2023
2024
2023
Net income (loss) attributable to
Chemours
$
70
$
(376
)
$
52
$
121
$
(231
)
$
116
$
(88
)
Non-operating pension and other
post-retirement benefit income
(2
)
—
(1
)
(2
)
—
(3
)
(2
)
Exchange losses (gains), net
7
5
(1
)
6
12
32
25
Restructuring, asset-related, and other
charges (1)
3
(1
)
4
7
15
145
14
Loss (gain) on extinguishment of debt
—
—
—
—
—
1
(7
)
(Gain) loss on sales of assets and
businesses, net (2)
—
—
(3
)
(3
)
—
(113
)
5
Transaction costs (3)
—
—
—
—
—
16
—
Qualified spend recovery (4)
(8
)
(18
)
(7
)
(15
)
(32
)
(37
)
(63
)
Litigation-related charges (5)
(16
)
644
—
(16
)
645
104
660
Environmental charges (6)
—
1
—
—
1
8
34
Adjustments made to income taxes (7)
(4
)
—
2
(3
)
(4
)
(17
)
32
Provision for (benefit from) income taxes
relating to reconciling items (8)
7
(88
)
2
10
(91
)
(36
)
(99
)
Adjusted Net Income
57
167
48
105
315
216
511
Net income attributable to non-controlling
interests
—
—
—
—
1
—
1
Interest expense, net
66
48
63
128
90
247
172
Depreciation and amortization
74
78
71
145
157
295
303
All remaining provision for income taxes
(8)
9
31
11
21
65
28
124
Adjusted EBITDA
$
206
$
324
$
193
$
399
$
628
$
786
$
1,111
Total debt principal
$
4,028
$
3,670
Less: Cash and cash equivalents
(604
)
(738
)
Total debt principal, net
$
3,424
$
2,932
Net Leverage Ratio (calculated using
GAAP earnings) (9)
37.6
x
(97.7
)x
Net Leverage Ratio (calculated using
Non-GAAP earnings) (9)
4.4
x
2.6
x
GAAP Net
Income (Loss) Attributable to Chemours to Adjusted Net Income and
Adjusted EBITDA Reconciliation
GAAP Net
Leverage Ratio to Non-GAAP Net Leverage Ratio Reconciliation
(Continued)
(1)
Refer to "Note 4 – Restructuring,
Asset-related, and Other Charges" to the Interim Consolidated
Financial Statements in our Quarterly Report on Form 10-Q for the
quarter ended June 30, 2024 for further details. For the twelve
months ended June 30, 2024, restructuring, asset-related, and other
charges primarily includes charges related to the Titanium
Technologies Transformation Plan, shutdown of a production line at
the Company's El Dorado site and the charges related to the 2023
Restructuring Program. For the twelve months ended June 30, 2023,
restructuring, asset-related, and other charges primarily includes
charges related to our decision to abandon implementation of our
new ERP software platform and the charges related to the 2022
Restructuring Program.
(2)
For the twelve months ended June
30, 2024, gain on sales of assets and businesses, net includes
pre-tax gain on sale of $106 million related to the Glycolic Acid
Transaction. For the twelve months ended June 30, 2023, gain on
sales of assets and businesses, net includes pre-tax gain on sale
of $5 million related to the Beaumont Transaction.
(3)
For the twelve months ended June
30, 2024, transaction costs includes $7 million of costs associated
with the New Senior Secured Credit Facilities entered into during
2023, which is discussed in further detail in "Note 20 – Debt" to
the Consolidated Financial Statements in our Annual Report on Form
10-K, and $9 million of third-party costs related to the Titanium
Technologies Transformation Plan.
(4)
Qualified spend recovery
represents costs and expenses that were previously excluded from
Adjusted EBITDA, reimbursable by DuPont and/or Corteva as part of
our cost-sharing agreement under the terms of the MOU which is
discussed in further detail in "Note 16 – Commitments and
Contingent Liabilities" to the Interim Consolidated Financial
Statements in our Quarterly Report on Form 10-Q for the quarter
ended June 30, 2024.
(5)
Litigation-related charges
pertains to litigation settlements, PFOA drinking water treatment
accruals, and other related legal fees. For the twelve months ended
June 30, 2024, litigation-related charges includes a $15 million
benefit related to insurance recoveries, $55 million of charges
related to the Company's portion of Chemours, DuPont, Corteva, EID
and the State of Ohio's agreement entered into in November 2023,
$13 million related to the Company's portion of the supplemental
payment to the State of Delaware, $48 million for other PFAS
litigation matters, and $3 million of other litigation matters. For
the twelve months ended June 30, 2023, litigation-related charges
primarily includes the $592 million accrual related to the United
States Public Water System Class Action Suit Settlement plus $24
million of third-party legal fees directly related to the
settlement, proceeds from a settlement in a patent infringement
matter relating to certain copolymer patents associated with the
Company’s Advanced Performance Materials segment and $20 million
associated with the Company's portion of the potential loss in the
single matter not included in the Leach settlement. See “Note 22 –
Commitments and Contingent Liabilities” to the Consolidated
Financial Statements in our Annual Report on Form 10-K for the year
ended December 31, 2023 for further details.
(6)
Environmental charges pertains to
management’s assessment of estimated liabilities associated with
certain environmental remediation expenses at various sites. For
the twelve months ended June 30, 2023, environmental charges
include $23 million related to on-site and off-site remediation
costs at Fayetteville. See “Note 22 – Commitments and Contingent
Liabilities” to the Consolidated Financial Statements in our Annual
Report on Form 10-K for the year ended December 31, 2023 for
further details.
(7)
Includes the removal of certain
discrete income tax impacts within our provision for income taxes,
such as shortfalls and windfalls on our share-based payments,
certain return-to-accrual adjustments, valuation allowance
adjustments, unrealized gains and losses on foreign exchange rate
changes, and other discrete income tax items.
(8)
The income tax impacts included
in this caption are determined using the applicable rates in the
taxing jurisdictions in which income or expense occurred for each
of the reconciling items and represent both current and deferred
income tax expense or benefit based on the nature of the non-GAAP
financial measure.
(9)
Net Leverage Ratio calculated
using GAAP measures is defined as our total debt principal, net, or
our total debt principal outstanding less unrestricted cash and
cash equivalents, divided by income (loss) before income taxes. Net
Leverage Ratio calculated using non-GAAP measures is defined as our
total debt principal, net, or our total debt principal outstanding
less unrestricted cash and cash equivalents, divided by Adjusted
EBITDA.
Reconciliation of GAAP Financial Measures to
Non-GAAP Financial Measures (Unaudited) (Dollars in millions,
except per share amounts)
GAAP Earnings per
Share to Adjusted Earnings per Share Reconciliation
Adjusted earnings per share (“Adjusted EPS”) is calculated by
dividing Adjusted Net Income by the weighted-average number of
common shares outstanding. Diluted Adjusted EPS accounts for the
dilutive impact of stock-based compensation awards, which includes
unvested restricted shares. Diluted Adjusted EPS considers the
impact of potentially-dilutive securities, except in periods in
which there is a loss because the inclusion of the
potentially-dilutive securities would have an anti-dilutive
effect.
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
2024
2023
2024
2024
2023
Numerator:
Net income (loss) attributable to
Chemours
$
70
$
(376
)
$
52
$
121
$
(231
)
Adjusted Net Income
57
167
48
105
315
Denominator:
Weighted-average number of common shares
outstanding - basic
149,413,167
149,095,543
149,035,200
149,224,183
149,046,585
Dilutive effect of the Company's employee
compensation plans (1)
709,893
1,517,177
1,015,169
862,531
1,849,679
Weighted-average number of common shares
outstanding - diluted (1)
150,123,060
150,612,720
150,050,369
150,086,714
150,896,264
Basic earnings (loss) per share of common
stock (2)
$
0.47
$
(2.52
)
$
0.35
$
0.81
$
(1.55
)
Diluted earnings (loss) per share of
common stock (1) (2)
0.46
(2.52
)
0.34
0.81
(1.55
)
Adjusted basic earnings per share of
common stock (2)
0.38
1.11
0.32
0.70
2.11
Adjusted diluted earnings per share of
common stock (1) (2)
0.38
1.10
0.32
0.70
2.08
(1)
In periods where the Company
incurs a net loss, the impact of potentially dilutive securities is
excluded from the calculation of EPS under U.S. GAAP, as their
inclusion would have an anti-dilutive effect. As such, with respect
to the U.S. GAAP measure of diluted EPS, the impact of potentially
dilutive securities is excluded from our calculation for the three
and six months ended June 30, 2023. With respect to the non-GAAP
measure of adjusted diluted EPS, the impact of potentially dilutive
securities is included in our calculation for the three and six
months ended June 30, 2023 as Adjusted Net Income was in a net
income position.
(2)
Figures may not recalculate
exactly due to rounding. Basic and diluted earnings per share are
calculated based on unrounded numbers.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240801961319/en/
INVESTORS Brandon Ontjes Vice President, Investor
Relations +1.302.773.3309 investor@chemours.com
Kurt Bonner Manager, Investor Relations +1.302.773.0026
investor@chemours.com
NEWS MEDIA Cassie Olszewski Corporate Media & Brand
Reputation Leader +1.302.219.7140 media@chemours.com
Chemours (NYSE:CC)
過去 株価チャート
から 8 2024 まで 9 2024
Chemours (NYSE:CC)
過去 株価チャート
から 9 2023 まで 9 2024