The Chemours Company announced its financial results for the fourth quarter and full year 2020.
Full Year 2020 Results & Highlights
- Net Sales of $5 billion;
- Net Income of $219 million with EPS of $1.32;
- Adjusted Net Income of $329 million with Adjusted EPS of $1.98;
- Adjusted EBITDA of $879 million;
- Free Cash Flow of $540 million;
- Extended debt maturities while preserving strong balance sheet, ample liquidity of $1.8 billion;
- Delivered on actions to achieve $160 million cost reduction and $125 million capex reduction in 2020;
- Chemours, DuPont and Corteva announced resolution of legacy PFAS claims
Fourth Quarter 2020 Results & Highlights
- Net Sales of $1.3 billion, nearly level with prior-year quarter;
- Net Income of $19 million, with EPS of $0.11;
- Adjusted Net Income of $103 million, with Adjusted EPS* of $0.61;
- Adjusted EBITDA of $246 million up 8% year-over-year;
- Free Cash Flow of $300 million;
- The company's Board of Directors approved a first quarter 2021 dividend of $0.25 per share, consistent with the prior quarter;
- As concurrently announced, Chemours is reporting two new segments starting in Q4 2020 – Advanced Performance Materials and Thermal & Specialized Solutions – formerly the Fluoroproducts segment
2021 Outlook
- Adjusted EBITDA between $1 to $1.15 billion, up 22% from 2020 at the mid-point;
- Adjusted EPS between ~$2.40 and $3.12;
-
Capex of ~$350 million with Free Cash Flow* expected to be greater than $350 million
"2020 was an unprecedented year, but I am proud of this company and the 6,500 members of our team that delivered solid results," Chemours President and CEO Mark Vergnano said. "Our COVID-19 response plan enabled Chemours to deliver robust Free Cash Flow as we prioritized cash and liquidity in a challenging demand environment. As the recovery gained momentum, we were ready to safely serve our customers and delivered fourth quarter sales performance nearly equal to pre-pandemic levels."
2020 Net Sales were $5 billion, 10% lower than the prior year. Higher year-over-year sales in Titanium Technologies were offset by declines in Thermal & Specialized Solutions, Advanced Performance Materials and Chemicals Solutions where customer demand was significantly impacted by the COVID-19 pandemic.
2020 Net Income was $219 million resulting in EPS of $1.32.
2020 Adjusted Net Income was $329 million resulting in Adjusted EPS of $1.98.
Adjusted EBITDA for 2020 was $879 million in comparison to $1,020 million in the prior year, a result of lower sales, partially offset by lower costs related to cost reductions and savings initiatives in response to the COVID-19 pandemic and structural cost reductions.
Fourth quarter 2020 Net Sales were $1.3 billion, 1% lower than the prior-year quarter, which included a (2%) portfolio impact from the divested MAP business.
The 8% sequential sales improvement was supported by a global macro recovery that drove sales higher in Titanium Technologies, Advanced Performance Materials and Chemicals Solutions.
Strong sequential volume growth accounted for the majority of the fourth quarter sales performance with a partial offset from lower global average prices.
Fourth quarter Net Income was $19 million, resulting in EPS of $0.11. Adjusted Net Income was $103 million, resulting in Adjusted EPS of $0.61, up $0.05 from the prior year.
Adjusted EBITDA for the fourth quarter 2020 was $246 million in comparison to $227 million in the prior-year fourth quarter, a result of higher volume, lower cost and favorable currency impact, partially offset by lower average pricing.
Outlook
The company expects to deliver 2021 Adjusted EBITDA within a range of $1 to $1.15 billion. Capital expenditures are expected to be approximately $350 million, with Free Cash Flow of greater than $350 million.
The company expects to deliver Adjusted EPS of between $2.40 and $3.12.
"We ended 2020 with solid momentum as the global recovery boosted demand in our key end-markets. Our outlook strikes a balance between the recovery and the natural uncertainty in the progression of the global COVID-19 pandemic," Vergnano said. "Our teams have prepared for this moment. Since spin, we have transformed the company to be more resilient and have invested behind key growth strategies. Looking ahead I strongly believe that we are ready to capitalize on our strategic transformation and create value for all of our stakeholders."
