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Chemours earnings up on gains in TiO2 and fluorochemicals

March 15/2021

MOSCOW (MRC) -- Chemours (Wilmington, Delaware) reports fourth-quarter net income of USD19 million, up from a loss of USD317 million in the year-ago quarter, on sales of USD1.337 billion, down 1% year-over-year (YOY), according to Chemweek.

Adjusted net income totaled USD103 million, up 12% YOY from USD92 million owing to higher volume, lower cost, and favorable currency impact, partially offset by lower average pricing, says the company. Adjusted earnings per share came to USD0.61, well above the average analyst estimate of USD0.36 as compiled by Zacks Investment Research.

We ended 2020 with solid momentum as the global recovery boosted demand in our key end-markets, says president and CEO Mark Vergnano. Our outlook strikes a balance between the recovery and the natural uncertainty in the progression of the global COVID-19 pandemic."

Chemours expects full-year 2021 adjusted EBITDA of USD1-1.15 billion, up from USD879 million in 2020, and adjusted EPS of between USD2.40-3.12, up from USD1.98 in 2020.

The company also announced that it has split its fluoroproducts segment into two new reporting segments, thermal & specialized solutions (TSS), formerly fluorochemicals, and advanced performance materials (APM), formerly fluoropolymers. Chemours says the move enables an enhanced customer-centered approach, management focus and decision-making, strong resource allocation, and increased transparency and accountability.

Titanium technologies segment sales totaled USD691 million, up 13% YOY. Volume increased 17% YOY on demand recovery in the architectural coatings, laminates and plastics markets. Global average selling prices were down 6% YOY. Adjusted EBITDA increased 30% YOY to USD149 million.

Sales in the thermal & specialized solutions (TSS) segment totaled USD272 million, down 6% YOY. Volume was flat, while price declined 7%, primarily the result of contractual price adjustments for refrigerants as well as product and customer mix. Adjusted EBITDA increased 28% YOY to USD105 million, driven by improved cost performance from the ramp up of Opteon production at Corpus Christi, Texas, which more than offset the impact of reduced price, says Chemours.

APM segment sales dropped 14% YOY to USD279 million. Volume and price declined 10% and 6% YOY, respectively. The COVID-19 pandemic continued to weigh on demand, but the impact moderated global recovery gained momentum in key end markets. Adjusted EBITDA decreased 29% YOY to USD25 million, mainly on lower net sales, partially offset by improved operational performance and cost reduction actions.

Chemical solutions segment sales dropped 26% YOY to USD95 million, mainly on the divestiture of Chemourss methylamines business in the fourth quarter of 2019. Prices and volume were both lower YOY. Adjusted EBITDA increased 12% YOY to USD28 million on higher licensing income.

As MRC informed before, in December 2019, Chemours announced plans to sell its methylamines and methylamides unit to Belle Chemical, an affiliate of Cornerstone Chemical. The sales price was not disclosed. Thus, Chemours had signed a letter of commitment with Belle Chemical Co. to sell Chemours' methylamines and methylamides business and production facilities at the Belle location. Earlier in 2019, Chemours announced it would stop making methylamines and methylamides at the plant. In 2020, it planned to start dismantling the methylamines operations. Once Belle takes possession of the plant, most of the employees at Belle and others assigned in supporting roles at other locations will become part of Belle, Chemours said. Cornerstone makes acrylonitrile (ACN) and melamine at Fortier, Louisiana.

Acrylonitrile is one of the main feedstock for the production of acrylonitrile-butadiene-styrene (ABS).

According to ICIS-MRC Price report, last year's ABS imports to Russia grew by 4% year on year to 35,000 tonnes from 33,700 tonnes. The share of South Korean supplies amounted to 62% (21,600 tonnes) versus 58% (19,700  tonnes) in January-December 2019.


mrcplast.com
Author:Margaret Volkova
Tags:dioksid titana, pigments, PS, ABS, akrilonitril, petrochemistry, paints and coatings, Chemours, Cornerstone Chemical, Russia, USA.
Category:General News
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