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Chemours posts Q1 adjusted EPS beat, revenues meet expectations

EditorNatashya Angelica
Published 04/30/2024, 05:47 PM
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WILMINGTON, Del. - The Chemours Company (NYSE: NYSE:CC), a leading chemical company, reported its first-quarter 2024 financial results, surpassing analyst expectations for adjusted earnings per share (EPS) while meeting revenue forecasts.

The company announced a Q1 adjusted EPS of $0.32, which was $0.17 higher than the analyst estimate of $0.15. Revenue for the quarter was reported at $1.35 billion, aligning with the consensus estimate.

Compared to the same quarter last year, net sales saw a 12% decline, primarily due to a 23% drop in Advanced Performance Materials (APM) net sales, with Titanium Technologies (TT) and Thermal & Specialized Solutions (TSS) experiencing a 7% and 8% decline, respectively.

The decrease in net sales was attributed to a combination of a 6% decrease in volumes and a 5% decline in price, while portfolio impacts posed a slight 1% headwind. Net income attributable to Chemours was $52 million, or $0.34 per diluted share, a significant decrease from $145 million, or $0.96 per diluted share, in the prior-year quarter.

Chemours CEO Denise Dignam commented on the results, "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 Transformation Plan, and lower-than-expected corporate costs."

Looking ahead to the second quarter of 2024, Chemours expects TT to achieve approximately 15% sequential net sales growth, reflecting improvement in the company's TiO2 orderbook. Adjusted EBITDA growth is anticipated to be in line with the growth in net sales.

TSS is projected to see mid-teens sequential growth for both net sales and adjusted EBITDA, driven by both seasonality and continued adoption of Opteon™ products. APM is expected to post low-teens sequential net sales growth, with adjusted EBITDA for the second quarter projected to approach a 30% sequential increase.

Chemours did not provide specific guidance figures for the second quarter or the full year, nor was there an analyst consensus provided for comparison. The company's focus remains on delivering efficiencies and cost reductions, particularly through its TT Transformation Plan, with the aim of becoming one of the lowest cost TiO2 producers globally.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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