The Chemours Company announced its financial results for the second quarter 2020.
Second quarter 2020 net sales were $1.1 billion in comparison to $1.4 billion in the prior-year second quarter. Results were driven primarily by lower volume across all segments. Second quarter net income was $24 million, resulting in an EPS of $0.15.
Adjusted EBITDA for the second quarter 2020 was $166 million in comparison to $283 million in the previous year second quarter. Free cash flow was $50 million, a $167 million improvement from prior year.
"Our results in the second quarter reflect disciplined execution of our cash generation strategy in spite of the significant impact of COVID-19 on global demand," said Chemours president and CEO Mark Vergnano. "We remain focused on both our employees' safety and fully supporting our customers' needs. At the same time, the team has reduced costs and improved operating efficiency through this difficult period."
Fluoroproducts segment net sales in the second quarter were $523 million in comparison to $711 million in the prior year. Volume and price declined 22% and 3%, respectively, on a year-over-year basis. Lower volumes were primarily driven by the impact of COVID-19 on global automotive OEMs and industrial end-markets.
Chemical Solutions segment net sales were $82 million, a 37% decrease versus the prior-year second quarter. Volumes were down 16% year-over-year primarily driven by COVID-19 related mine closures. Portfolio was down 18% year-over-year primarily driven by the Methylamines and Methylamides business divestiture in the fourth quarter of 2019.
Titanium Technologies segment net sales in the second quarter were $488 million in comparison to $567 million in the prior-year quarter. Volumes were down 9% versus the prior-year second quarter, a result of softer demand primarily in Europe, Latin America and Asia
As of June 30, 2020, consolidated gross debt was $4.4 billion. Debt, net of $1 billion cash, was $3.3 billion, resulting in a net leverage ratio of approximately 3.7 times on a trailing twelve-month adjusted EBITDA basis.
Cash provided by operating activities for the second quarter of 2020 was $111 million, up $104 million from $7 million in the prior-year quarter. Capital expenditures for the second quarter 2020 were $61 million, versus $124 million in last year's second quarter. Free cash flow for the second quarter 2020 was a $50 million inflow versus the prior-year quarter of a $117 million outflow, an improvement of $167 million.
“The first half of 2020 has been one of the most difficult periods in our short history,” Vergnano concluded. I am proud of the way Chemours has responded and our ability to focus and execute through these uncertain times. The outlook for the second half, while improving, remains unclear.”