The Chemours Co (CC) Releases Q3 2023 Earnings Report
The Chemours Co (NYSE:CC) reported Q3 2023 net sales of $1.5 billion and net income of $20 million.
The company announced the launch of its Titanium Technologies Transformation Plan, which aims to drive approximately $100 million in run-rate cost savings starting in 2024.
Adjusted EBITDA for Q3 2023 was $247 million, with an adjusted free cash flow of $81 million.
Due to weaker demand outlook, the company has lowered its FY 2023 Adjusted EBITDA guidance by 8% at the midpoint.
On October 26, 2023, The Chemours Co (NYSE:CC), a global chemistry company with leading market positions in Titanium Technologies, Thermal & Specialized Solutions, and Advanced Performance Materials, announced its financial results for the third quarter of 2023. The company reported net sales of $1.5 billion and net income of $20 million, with an EPS of $0.13. The adjusted net income was $96 million with an adjusted EPS of $0.63.
Financial Highlights
The company's adjusted EBITDA for the third quarter was $247 million, with an adjusted free cash flow of $81 million. The company also announced the launch of its Titanium Technologies Transformation Plan, which aims to drive approximately $100 million in run-rate cost savings starting in 2024. Additionally, the company completed the sale of its Glycolic Acid business to PureTech Scientific Inc., generating net cash proceeds of $138 million.
Company Performance Analysis
Despite the weaker global macroeconomic environment impacting the Titanium Technologies segment and the Advanced Materials portfolio, the company has stepped up its efforts to improve earnings. The company's President and CEO, Mark Newman, stated,
We have stepped up our efforts to improve the TT segments earnings with the launch of our TT Transformation Plan, which commenced with the recent Kuan Yin facility closure, and has been augmented by incremental efforts to streamline our workforce and other measures to drive cost savings and long-term margin improvement."
Segment Results
The Titanium Technologies segment reported net sales of $690 million, down 21% from the prior-year quarter. The Thermal & Specialized Solutions segment reported record third quarter net sales of $436 million, up 5% from the prior-year quarter. The Advanced Performance Materials segment reported net sales of $343 million, down 24% from the prior-year quarter.
Outlook
Given the weaker demand outlook, the company has lowered its FY 2023 Adjusted EBITDA guidance by 8% at the midpoint. The company now anticipates full year Adjusted EBITDA to be between $1.025 billion and $1.075 billion, with Adjusted Free Cash Flow guidance greater than $225 million.
Explore the complete 8-K earnings release (here) from The Chemours Co for further details.
This article first appeared on GuruFocus.
