In the third quarter of 2021, Chemours posted a recovery in earnings on the back of the improvements in the auto and construction sectors.
In the July-September period, the company’s net income was USD76 million, steady year-on-year and sequentially it was up by 217%. Sales, however, stepped down by 11% on a yearly basis to USD1.233 billion and up by 13% sequentially.
Adjusted earnings slumped to 47 cents compared to 59 cents in the same period a year ago. Still, it was higher than the average analysts’ prediction of 33 cents.
Chemours mentioned that the lower fluoro products and chemical solutions segment volumes year-on-year, along with the fall in the global average prices, had impacted the results. However, the reading was still partially offset by the higher volumes in the titanium technologies segment.
Lower demand in fluoropolymer drove the fall in sales by 16% year-on-year to USD533 million, with volume slipped by 11% and prices dropped by 5%. However, the readings were still partially offset by early signs of market recovery, such as the rising demand for refrigerants, particularly in the automotive sector. Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) slipped by 8% year-on-year to a total of USD112 million.
Sales of chemical solutions segment slumped by 37% year-on-year to USD88 million. Both the prices and volumes were impacted by the shutdown of mines in Latin America due to coronavirus. The company’s divestiture of the methylamines and methyl amides business last year caused a 19% drop. The adjusted EBITDA plunged by 48% year-on-year to USD12 million.
Sales of the titanium technologies were at USD612 million, compared to USD614 million at the corresponding time a year ago. Thanks to demand recovery in the architectural coatings, laminates, and plastics markets, volumes rose 4% year-on-year, albeit the 5% fall in average selling prices globally. Adjusted EBITDA dropped by 6% to USD129 million.
On a sequential basis, sales rose by 25% with adjusted EBITDA accelerated by 37% on the back of strong volumes.
