The Chemours Company announced its financial results for third quarter 2020.
Third quarter 2020 net sales were $1.2 billion in comparison to $1.4 billion in the prior-year third quarter. Results were driven by lower volumes in Fluoroproducts and Chemical Solutions and lower global average prices, partially offset by higher volumes in Titanium Technologies.
Third quarter net income was $76 million, resulting in EPS of $0.46, equal to the prior year. Adjusted net income was $78 million, resulting in adjusted EPS of $0.47, down $0.12 from the prior year, inclusive of a $10 million charge related to Chemours’ Fayetteville facility.
Adjusted EBITDA for the third quarter 2020 was $210 million in comparison to $248 million in the previous year third quarter, a result of lower volumes and prices, partially offset by stronger operational performance and lower cost on a year-over-year basis.
Cash provided by operating activities for the third quarter of 2020 was $299 million, up $11 million from $288 million in the prior-year quarter. Capital expenditures for the third quarter 2020 were $47 million, versus $128 million in last year's third quarter. Free cash flow for the third quarter 2020 was a $252 million inflow versus the prior-year quarter of $160 million, an improvement of $92 million.
"Our results in the third quarter demonstrate the progress we have made in executing our business plan and the steady recovery of the auto, architectural coatings and construction markets," said Mark Vergnano, Chemours president and CEO. "Despite the COVID-19 headwinds, we continue to deliver on our cash generation strategy which supports our strong balance sheet and liquidity position. We also released our third annual CRC Report – renewing our commitment to leading the industry and our peers on a broad spectrum of ESG targets. This document remains foundational for the company, and a key component of our long-term strategy."
In particular, the Titanium Technologies segment posted net sales in the third quarter of $612 million in comparison to $614 million in the prior-year quarter. Volumes were up 4% versus the prior-year third quarter, a result of demand recovery in the architectural coatings, laminates and plastics markets. Global average selling prices were down 5% on a year-over-year basis. Segment adjusted EBITDA decreased by 6% to $129 million, in comparison to $137 million in last year's third quarter. Titanium Technologies segment net sales increased 25% on a sequential basis, with adjusted EBITDA up 37% on a sequential basis.
As of Sept. 30, 2020, consolidated gross debt was $4.1 billion. Debt, net of $956 million cash, was $3.2 billion, resulting in a net leverage ratio of approximately 3.7 times on a trailing twelve-month Adjusted EBITDA basis.
“I am proud of the resilience our business has shown over the first three quarters of 2020,” Vergnano concluded. "Our results are a testament to the hard work of the people of Chemours, our dedication to the success of our customers, and our ability to execute in the face of uncertainty. Looking ahead, I am confident that we are well-positioned to create sustained value through economic recovery and remain committed to achieving our full potential as Chemours."
