Raising 2021 Adjusted EBITDA and Free Cash Flow Guidance by $100 Million
WILMINGTON, Del., May 3, 2021 /PRNewswire/ — The Chemours Company (Chemours) (NYSE: CC), a global chemistry company with leading market positions in Titanium Technologies, Thermal & Specialized Solutions, Advanced Performance Materials, and Chemical Solutions today announces its financial results for the first quarter 2021.
First Quarter 2021 Results & Highlights
- Net Sales of $1.4 billion, up 10% year-over-year
- Net Income of $96 million with EPS of $0.57
- Adjusted Net Income* of $120 million with Adjusted EPS* of $0.71
- Adjusted EBITDA* of $268 million
- Initiated strategic review of Mining Solutions
- Announced ambitious net zero climate goal
- On April 29, 2021, the company’s Board of Directors approved a second quarter dividend of $0.25 per share, consistent with the prior quarter
2021 Revised Outlook
- Adjusted EBITDA* between $1.10 and $1.25 billion, up $100 million at the midpoint vs. prior outlook
- Adjusted EPS* between ~$2.84 and $3.56 vs. prior expectation of ~$2.40 and $3.12
- Free Cash Flow* now expected to be greater than $450 million, up $100 million vs. prior outlook
“We are off to a great start in 2021 as the broad economic recovery drove strong year-over-year and sequential volume growth across the majority of our portfolio, leading to the highest quarterly sales total in more than 2-years,” said Chemours President and CEO Mark Vergnano. “This outcome was achieved despite managing through supply chain challenges and operational headwinds, most notably from Winter Storm Uri. Looking ahead, our strong 1Q results and growing confidence in the outlook allows us to raise our 2021 full-year Adjusted EBITDA range by $100 million with Free Cash Flow now expected to be greater than $450 million.”
First quarter 2021 Net Sales were $1.4 billion, 10% higher than the prior-year quarter, which included a negative 1% portfolio impact from the exit of the aniline business. 11% volume growth was the primary driver of the better year-over-year sales performance with positive contributions from every segment, led by robust growth in Titanium Technologies and Advanced Performance Materials. The 7% sequential sales improvement was supported by a global macro recovery that drove sales higher in Titanium Technologies, Thermal & Specialized Solutions, Advanced Performance Materials, and Chemical Solutions after accounting for portfolio changes.
First quarter Net Income was $96 million, resulting in EPS of $0.57. Adjusted Net Income was $120 million, resulting in Adjusted EPS of $0.71, flat vs. the prior-year quarter. Adjusted EBITDA for the first quarter 2021 was $268 million in comparison to $257 million in the prior-year first quarter, a result of higher volume and favorable currency impact, partially offset by lower average pricing, under absorption of fixed costs stemming from Winter Storm Uri related plant shutdowns, and higher performance-related compensation. The cost impact of Winter Storm Uri, excluding the impact of lost sales, on Adjusted EBITDA is $9 million, mostly in Thermal & Specialized Solutions. Free Cash Flow improved $41 million vs. the prior-year quarter primarily driven by lower capital expenditures.