WILMINGTON, Del., July 28, 2015 /PRNewswire/ -- The Chemours
Company ("Chemours") (NYSE: CC), a global leader in titanium
technologies, fluoroproducts and chemical solutions, today
commented that continued challenging market conditions are
reflected in the second quarter 2015 financial results for the
Performance Chemicals segment of E. I. du Pont de Nemours and
Company (DuPont). During the period, Chemours, which separated from
DuPont on July 1, 2015, was a
wholly-owned subsidiary of DuPont comprised of the businesses
within the Performance Chemicals segment.
Today, DuPont reported Performance Chemicals segment net sales
in the second quarter of $1.5 billion
and segment operating earnings of $113
million. Chemours stated that second quarter performance
reflected a sequential improvement in titanium dioxide shipments
over the first quarter despite a slow start to the North American
coatings season. This volume improvement was offset by continued
weakness in the TiO2 pricing environment and currency
headwinds across the businesses. Chemours expects to report second
quarter 2015 financial results on a stand-alone basis on
August 6th and will
conduct a webcast conference call to review business
performance.
Mark Vergnano, president and
chief executive officer of Chemours, said: "Our focus is to improve
our earnings and cash flow by aggressively reducing our structural
costs and optimizing our portfolio. We expect that our previously
announced restructuring actions taken in the second quarter will
reduce costs by $40 million in the
second half of 2015 and $80 million
annually thereafter. We are also targeting further cost reductions
to deliver an additional $120 million
in savings. Combined, we expect that these actions will reduce
spending levels by approximately $200
million by year-end 2016."
As previously disclosed, Chemours anticipates additional cash
flow improvements from the management of its asset portfolio. The
Altamira expansion, which is expected to be completed in mid-2016,
is anticipated to provide annual Adjusted EBITDA benefits of
$20 million to $70 million. Once
Altamira is complete, capital expenditures will decline from the
peak of capital spending in 2014. The ramp up of the Opteon™
refrigerant product line will drive increased revenue and Adjusted
EBITDA in the Fluoroproducts segment in each of the next three
years. Chemours also continues to evaluate alternatives to improve
the profitability of the Chemicals Solution segment.
Vergnano continued, "We will share a more detailed review of our
second quarter financial results on our call on August 6th. Additionally, we will
clarify the opportunities and actions that we are taking to further
transform Chemours."
Conference Call
Financial results on a stand-alone
basis for the second quarter 2015 will be discussed during a
conference call with management on August 6,
2015 at 8:00 AM EDT. Investors
can access the call via webcast and view the accompanying slides by
visiting the Events & Presentations page of Chemours' investor
relations website, investors.chemours.com or by calling +1 (888)
424-8151 US Toll Free or +1 (847) 585-4422 US Toll, Passcode
67 42 438. A replay of the conference call will be available for 90
days.
About The Chemours Company
The Chemours Company (NYSE:
CC) helps create a colorful, capable and cleaner world through the
power of chemistry. Chemours is a global leader in titanium
technologies, fluoroproducts and chemical solutions, providing its
customers with solutions in a wide range of industries with
market-defining products, application expertise and chemistry-based
innovations. Chemours ingredients are found in plastics and
coatings, refrigeration and air conditioning, mining and oil
refining operations and general industrial manufacturing. Our
flagship products include prominent brands such as Teflon™,
Ti-Pure™, Krytox™ Viton™, Opteon™ and Nafion™. Chemours has
approximately 9,000 employees across 37 manufacturing sites serving
more than 5,000 customers in North
America, Latin America,
Asia-Pacific and Europe. Chemours is headquartered in
Wilmington, Delaware and is listed
on the NYSE under the symbol CC. For more, information please visit
chemours.com.
Non-GAAP Financial Measures
We prepare our financial
statements in accordance with Generally Accepted Accounting
Principles ("GAAP"). Within this press release, we make reference
to Adjusted EBITDA, which is a non-GAAP financial measure. The
Company includes this non-GAAP financial measure because management
believes it is useful to investors in that it provides for greater
transparency with respect to supplemental information used by
management in its financial and operational decision making.
Management uses Adjusted EBITDA to evaluate the Company's
performance excluding the impact of certain non-cash charges and
other special items in order to have comparable financial results
to analyze changes in our underlying business from quarter to
quarter.
Accordingly, the Company believes the presentation of this
non-GAAP financial measure, when used in conjunction with GAAP
financial measures, is a useful financial analysis tool that can
assist investors in assessing the Company's operating performance
and underlying prospects. This analysis should not be considered in
isolation or as a substitute for analysis of our results as
reported under GAAP. This analysis, as well as the other
information in this press release, should be read in conjunction
with the Company's financial statements and footnotes contained in
the documents that the Company files with the U.S. Securities and
Exchange Commission. The non-GAAP financial measures used by the
Company in this press release may be different from the methods
used by other companies. For more information on the non-GAAP
financial measures, please refer to the table, "Reconciliation of
Non-GAAP Financial Measures to GAAP Financial Measures and
materials posted to the website at investors.chemours.com."
Forward-Looking Statements
This press release contains
forward-looking statements, which often may be identified by their
use of words like "plans," "expects," "will," "believes,"
"intends," "estimates," "anticipates" or other words of similar
meaning. These forward-looking statements address, among other
things, our anticipated future operating and financial performance,
business plans and prospects, transformation plans, resolution of
environmental liabilities, litigation and other contingencies,
plans to increase profitability, and target leverage that are
subject to substantial risks and uncertainties that could cause
actual results to differ materially from those expressed or implied
by such statements. Forward-looking statements are not
guarantees of future performance and are based on certain
assumptions and expectations of future events which may not be
realized. The matters discussed in these forward-looking statements
also are subject to risks, uncertainties and other factors that
could cause actual results to differ materially from those
projected, anticipated or implied in the forward-looking statements
as further described in the "Risk Factors" section of the
information statement contained in the registration statement on
Form 10 and other filings made by Chemours with the Securities and
Exchange Commission. Chemours undertakes no duty to update any
forward-looking statements.
CONTACT:
MEDIA:
Robert
Dekker
Global Corporate Communications
Leader
+1.302.773.4509
robert.dekker@chemours.com
INVESTORS:
Alisha
Bellezza
Director of Investor
Relations
+1.302.773.2263
alisha.bellezza@chemours.com
Logo -
http://photos.prnewswire.com/prnh/20150715/237460LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/the-chemours-company-comments-on-dupont-performance-chemicals-second-quarter-2015-segment-results-300119459.html
SOURCE The Chemours Company