The Chemours Co (CC, Financial) released its 8-K filing on August 1, 2024, reporting its financial results for the second quarter of 2024. The Chemours Co is a global provider of chemicals, delivering customized solutions with a wide range of industrial and specialty chemicals products for various markets including coatings, plastics, refrigeration, and air conditioning. The company's operating segments include Titanium Technologies, Thermal & Specialized Solutions, and Advanced Performance Materials, with the majority of its revenue generated from the Titanium Technologies segment.
Performance Overview
For the second quarter of 2024, The Chemours Co reported net sales of $1.5 billion, a 6% decline year-over-year. The company posted a net income attributable to Chemours of $70 million, or $0.46 per diluted share, compared to a net loss of $376 million, or $2.52 per diluted share, in the same quarter last year. Adjusted net income was $57 million, or $0.38 per diluted share, falling short of analyst estimates of $0.50 per share. Adjusted EBITDA was $206 million, down from $324 million in the prior-year quarter.
Segment Performance
Titanium Technologies (TT): The TT segment reported net sales of $673 million, a 5% decrease year-over-year. Adjusted EBITDA for the segment was $80 million, down 8% from the prior-year quarter. The segment faced pricing declines and currency headwinds, partially offset by increased volumes.
Thermal & Specialized Solutions (TSS): The TSS segment saw net sales of $513 million, a 2% decrease year-over-year. Adjusted EBITDA was $161 million, down 25% from the prior-year quarter. The segment was impacted by lower pricing and increased costs, despite strong demand for Opteon™ Refrigerants.
Advanced Performance Materials (APM): The APM segment reported net sales of $339 million, a 12% decrease year-over-year. Adjusted EBITDA was $45 million, down 44% from the prior-year quarter. The segment faced declines in price, volume, and currency.
Financial Metrics and Achievements
Key financial metrics for The Chemours Co include:
| Metric | Q2 2024 | Q2 2023 | Y-o-Y % Change |
|---|---|---|---|
| Net Sales (millions) | $1,538 | $1,643 | (6)% |
| Adjusted EBITDA (millions) | $206 | $324 | (36)% |
| Net Income (millions) | $70 | $(376) | N/A |
| Adjusted Net Income (millions) | $57 | $167 | (66)% |
Challenges and Outlook
The Chemours Co faced several challenges during the quarter, including high HFC inventory levels and increased corporate expenses. The company also dealt with an unplanned shutdown of its Altamira facility, which impacted its Titanium Technologies segment. Despite these challenges, the company maintained its customer commitments and saw strong demand for its Opteon™ Refrigerants.
“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,” said Chemours CEO Denise Dignam.
Looking ahead, The Chemours Co anticipates a low to mid-single digit sequential decline in net sales for the third quarter, reflecting residual impacts from the Altamira facility shutdown and refrigerant seasonality. The company expects continued strong adoption of Opteon™ Refrigerants and a modest recovery in its Advanced Performance Materials segment.
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Explore the complete 8-K earnings release (here) from The Chemours Co for further details.
