Chemours says top execs manipulated free cash flow, foresees no impact on results
March 6 (Reuters) - Chemours said on Wednesday that an internal review revealed its senior executives manipulated some vendor payments and collections of receivables in the fourth quarter of 2023 in part to meet free cash flow targets, tied to their incentives.
The findings will not affect its preliminary results estimates for the year ended Dec. 31, the U.S. chemical company said, without disclosing a date to report its results.
Chemours' shares plunged to a more than three-year low last week after it placed its top three executives, including CEO Mark Newman, on administrative leave and said it was looking into potential "material weaknesses" in its financial reporting.
The company also said similar actions were likely undertaken by these executives in the fourth quarter of 2022, resulting in a significant increase in cash flow for the quarter ended Dec. 31, 2022, and a decrease in the first quarter of 2023.
Chemours last week named company insiders Denise Dignam as CEO and Matt Abbott as chief financial officer on an interim basis.
The company earlier said that it expects preliminary net sales of about $6.0 billion for the year, down from $6.8 billion a year ago.
It also estimated a net annual loss of $225 million-$235 million, compared with a net income attributable of $578 million for 2022. (Reporting by Kanjyik Ghosh; Editing by Varun H K)
