Chemours reports $1.4 billion in net sales for first quarter

Wilmington, DE — The Chemours Co. reported a wider first-quarter loss Tuesday despite slightly higher sales, as increased financing costs and operational disruptions weighed on results even while its refrigerants business delivered record performance.

The chemical company posted a net loss attributable to Chemours of $29 million, or 19 cents per diluted share, for the quarter ended March 31, compared with a loss of $5 million, or 3 cents per diluted share, in the same period a year earlier.

Adjusted net income fell to $8 million, or 5 cents per diluted share, from $19 million, or 13 cents per diluted share, a year earlier. Adjusted EBITDA rose slightly to $169 million from $166 million.

Net sales increased 1% to $1.381 billion from $1.368 billion in the prior-year quarter. Chemours said higher pricing and favorable currency impacts offset lower sales volumes.

CEO Denise Dignam said the company exceeded expectations during the quarter, citing strong performances in its Thermal & Specialized Solutions and Titanium Technologies businesses, as well as proceeds from the sale of property at its Kuan Yin site.

Chemours said it received about $287 million in initial net proceeds from the land sale, which it used in part to reduce debt by €140 million.

The company’s Thermal & Specialized Solutions segment delivered record first-quarter sales and adjusted EBITDA. Segment sales climbed 22% to $568 million, driven by increased adoption of Opteon refrigerants and stronger automotive Freon refrigerant sales in North America. Adjusted EBITDA for the segment rose 35% to $190 million.

Sales in Chemours’ Titanium Technologies segment declined 6% to $559 million as global volumes fell, particularly in North America and certain non-western markets. Adjusted EBITDA for the segment dropped 64% to $18 million.

The company’s Advanced Performance Materials segment reported a 17% decline in sales to $243 million. Chemours attributed the decrease primarily to production constraints tied to an outage at its Washington Works plant and the closure of a production line completed last year. Adjusted EBITDA in the segment fell 84% to $5 million.

Chemours said first-quarter operating cash usage improved to $44 million from $112 million a year earlier, while free cash flow usage narrowed to $93 million from $196 million.

Looking ahead, the company said it expects second-quarter net sales to rise 15% to 20% sequentially, with adjusted EBITDA projected between $220 million and $250 million. For the full year, Chemours maintained its outlook for net sales growth of 3% to 5% and adjusted EBITDA between $800 million and $900 million.