The following is a summary of the Chemours Co (CC) Q1 2024 Earnings Call Transcript:
Financial Performance:
Chemours reported Q1 2024 net sales of $1.4 billion, a fall from $1.5 billion in Q1 2023 due to a 6% decrease in APM and TSS and a 5% price drop across all businesses.
The company saw a significant drop in its consolidated adjusted EBITDA by 37% YoY from $304 million to $193 million, and the Net income was reported at $52 million compared to $145 million in Q1 2023.
Chemours' APM segment saw a 23% decrease in net sales, driven by an 18% decline in volume and a 5% decrease in pricing.
Chemours is on track to meet its FY 2024 cost target of $125 million. The company expects a 15% increase sequentially in net sales and adjusted EBITDA in Q2 2024.
Business Progress:
The TT division met top-line expectations with better-than-expected Adjusted EBITDA, driven by allocating TiO2 volumes to higher yield regions, and more favorable timing of lower-cost ore consumption.
Chemours continued to leverage its Opteon stationary blend in the TSS segment to support the transition to low Global Warming Potential (GWP) solutions in the US and Europe.
TT reported increased sales in Asia and successful operational cost savings due to its transformation plan.
Chemours is sampling a groundbreaking 2 phase immersion cooling technology with key partners, expected to significantly reduce water usage and footprint for data center facilities.
The company plans to continue its focus on reducing costs in APM building and investing in businesses where there are significant growth opportunities.
Chemours has not made a decision on future additional capacity apart from the projected 40% expansion and is committed to the long-term growth trajectory, foreseeing mid to high single-digit growth through the end of the decade with margins greater than 30%.
More details: The Chemours IR
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