Chemours reports solid Q4 and FY 2021 results

The Chemours Company, a global chemistry company with leading market positions in Titanium Technologies, Thermal & Specialized Solutions, Advanced Performance Materials, and Chemical Solutions, has announced its financial results for Q4 and FY 2021.

"I’m extremely proud of the results our teams around the world delivered, despite the challenges and uncertainties of 2021. Consistently, in the face of demanding circumstances, we continue to meet our commitments to customers, supply chain partners, and the communities in which we operate while delivering on our financial goals,” said Chemours President and CEO Mark Newman. "I want to thank all 6400 of our employees for their continued commitment to excellence, our customers for their loyalty, and our global leadership team for pushing us all to greater heights. Building on a firm foundation, I am excited to lead us into the next chapter of our company – ‘Chemours 2.0’ – as we look to realise the full potential of our businesses. I look forward to beginning this journey by engaging even more deeply with all of our stakeholders in early 2022.”

2021 Net Sales were US$6.3bn, up 28%, or US$1.4bn, from 2020. Net Sales rose on a yr-on-yr basis as global demand recovered from 2020 pandemic lows.

2021 Net Income of US$608M resulted in EPS of US$3.60. Adjusted Net Income rose 105% to US$674M, while Adjusted EPS rose US$2.02 to US$4.00 for the full year. Adjusted EBITDA for 2021 was US$1313M, up 49% from 2020. Free cash flow was US$543M, demonstrating the ability of the company to convert earnings to cash consistently across economic cycles.

Q4 2021 Net Sales were US$1.6bn, 18% higher than the prior-year quarter. Volume and price were positive contributors to the improved results on a yr-on-yr basis.

Q4 Net Income was US$233M, resulting in EPS of US$1.40. Adjusted Net Income was US$135M. Adjusted EPS was US$0.81, up $US0.20 vs the prior-year quarter. Adjusted EBITDA for Q4 2021 was US$307M in comparison to US$246M in the prior-year Q4, a result of higher pricing offset partially by lower volumes and cost headwinds related to raw material cost inflation and logistics. Currency was a slight headwind in the quarter.

Titanium Technologies (TT)
Creating a winning customer value proposition behind our world-class Ti-Pure™ operations

Titanium Technologies segment Net Sales for the full year were US$3.4bn, up US$1.0bn, or 40%, from the full year 2020 as demand recovered across all end markets and geographies from pandemic levels. Volume rose 28% while price rose 10%. Volume and price were positive across all three of our main sales channels and geographies. Currency was a modest 2% tailwind for the year. Segment Adjusted EBITDA rose US$299M to US$809M, as higher Net Sales more than offset cost headwinds. Segment Adjusted EBITDA margins rose 300bps to 24% for the full year.

Titanium Technologies segment Net Sales in Q4 were US$865M, up 25% in comparison to US$69M in the prior-year quarter. Volume rose 6% vs the prior-year quarter in spite of ore and logistics constraints. Price rose 19% on a yr-on-yr basis, and 5% on a sequential basis, reflecting strength across all three of its Ti-Pure™ selling channels. Segment Adjusted EBITDA increased 33% to US$198M from the prior-year period, resulting in segment Adjusted EBITDA margins of 23%. We exited 2021 having fully regained the share lost on installation of our TVS strategy.

Chemours’ TVS strategy continues to provide customers with a market leading combination of product quality and supply certainty – enabled by our world-class pigment technology.

Outlook
The company expects to deliver 2022 Adjusted EBITDA within a range of US$1.3bn to US$1.425bn. Adjusted EPS is projected to be between US$4.07 and US$4.70. The company expects Free Cash Flow of greater than US$500M, inclusive of approximately US$400M of capital expenditures.

Mr Newman concluded: "The work our teams have done, and the results we have delivered in 2021, built the momentum for stronger results in 2022. Our outlook reflects our belief in a continued economic recovery from the challenges caused by the global pandemic, and a normalisation of supply chains early in 2022. We remain committed to driving top-line growth, improving the underlying earnings quality of the business, capturing the significant secular growth potential of our core businesses, and working closely with our customers to solve the world’s most challenging problems.”