The Chemours Co (CC) Q3 2024 Earnings Call Highlights: Navigating Challenges with Strategic ...

GuruFocus News
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In This Article:

  • Consolidated Net Sales: Approximately $1.5 billion, up 1% year-over-year.

  • Adjusted EBITDA: Decreased from $211 million to $208 million year-over-year.

  • Net Loss: $27 million or $0.18 per diluted share, compared to net income of $12 million or $0.08 per share in the prior year.

  • Adjusted Net Income: $61 million or $0.40 per diluted share, down from $65 million or $0.43 per diluted share last year.

  • TSS Net Sales: Approximately $460 million, a 6% increase year-over-year.

  • TSS Adjusted EBITDA: $141 million, a 13% decrease year-over-year, with a margin of 31%.

  • TT Net Sales: $679 million, a 2% decrease year-over-year.

  • TT Adjusted EBITDA: Increased 23% to $85 million, with a margin improvement to 13%.

  • APM Net Sales: $348 million, a 1% increase year-over-year.

  • APM Adjusted EBITDA: Decreased 43% to $39 million, with a margin of 11%.

  • Cash Provided by Operating Activities: $139 million, a 6% increase from the prior year.

  • Capital Expenditures: $76 million, down from $86 million in the prior year.

  • Dividends Paid: $38 million during the quarter.

  • Gross Debt: $4.1 billion as of September 30, 2024.

  • Liquidity: Approximately $1.2 billion, including $596 million in unrestricted cash and $652 million available under the revolving credit facility.

Release Date: November 04, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • The Chemours Co (NYSE:CC) reported a 21% year-over-year increase in Opteon refrigerant sales, reflecting strong demand and market adoption.

  • The company achieved a record sales figure for its TSS business in the third quarter, driven by robust growth in Opteon refrigerants.

  • The TT business exceeded its year-to-date savings target, achieving $130 million in savings, surpassing the $125 million goal.

  • Chemours has successfully remediated two of its four material weaknesses, showing progress in addressing control issues.

  • The company outlined a refreshed corporate strategy, 'Pathway to Thrive,' focusing on operational excellence, growth, portfolio management, and long-term strengthening.

Negative Points

  • The Chemours Co (NYSE:CC) reported a net loss of $27 million for the third quarter, including a $56 million non-cash impairment charge.

  • Advanced Materials results were weaker than anticipated due to pricing conditions and a softer market environment.

  • The APM segment's adjusted EBITDA decreased by 43%, with a significant decline in EBITDA margin.

  • Freon refrigerant pricing pressures continue due to elevated HFC inventory levels in the United States.

  • The company anticipates a sequential decline in net sales and adjusted EBITDA for the fourth quarter due to typical seasonal trends.

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