Chemours (CC) Announces Development of New Specialty Fluid
The Chemours Company CC recently reported significant advancements in the development and production of Opteon 2P50, a new heat-transfer fluid for two-phase immersion cooling (2-PIC). The fluid is currently in its final stages of production capability testing, with initial commercialization scheduled for 2025, pending necessary regulatory clearances.
Opteon 2P50 is a proprietary hydrofluoroolefin (HFO) dielectric fluid designed to address the growing need for high-performance solutions that reduce environmental impact while enabling circularity. Opteon 2P50 has no ozone depletion potential (ODP) and a significantly lower global warming potential (GWP) than incumbent fluids.
The introduction of Opteon 2P50 is a critical step in positioning the company to meet a growing challenge brought on by a new era of data transmission, which is driving a dramatic increase in demands for faster computing, AI capabilities and other cutting-edge applications. These are based on technologies requiring elevated cooling capacities. Chemours' innovative 2-PIC fluid offers high-performance computing as well as energy-efficient cooling in a variety of thermal management applications.
Shares of CC have lost 12.5% over the past year compared with 2.6% decline of its industry.
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The company, on its second-quarter call, updated its adjusted EBITDA guidance for 2023, factoring in weaker demand visibility in the second half of 2023. It anticipates adjusted EBITDA for 2023 to be between $1.100 billion and $1.175 billion, down from its prior view of $1.20 billion and $1.30 billion. It also sees free cash flow of more than $325 million, including about $400 million in capital expenditures.
Chemours also announced the closure of its titanium dioxide manufacturing plant in Taiwan as part of its plans to improve the earnings quality of the Titanium Technologies unit. CC expects the move to allow it to optimize its manufacturing circuit without compromising its ability to meet customer demand. It also sees significant recurring cost savings from this action starting in the second half of 2023.
The Chemours Company Price and Consensus
The Chemours Company price-consensus-chart | The Chemours Company Quote
Zacks Rank & Key Picks
Chemours currently carries a Zacks Rank #4 (Sell)
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, Denison Mine Corp. DNN and Veritiv Corporation VRTV.
Capenter Technology currently carries a Zacks Rank #1 (Strong Buy). The stock has rallied roughly 48.7% in the past year. CRS beat the Zacks Consensus Estimate in three of the last four quarters while meeting in one. It delivered a trailing four-quarter earnings surprise of 9.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Denison Mines currently carries a Zacks Rank #1. The stock has gained roughly 14.6% in the past year. DNN beat the Zacks Consensus Estimate in three of the last four quarters while meeting once. It delivered a trailing four-quarter earnings surprise of 75%, on average.
Veritiv currently carries a Zacks Rank #2 (Buy). The stock has rallied roughly 21.9% in the past year. VRTV beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 6%, on average.
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