MOSCOW (MRC) -- US-based pigment producer Chemours reported a decline in net income because sales fell faster than costs, said the company.
The following shows the company's Q2 performance. Figures are in millions of dollars. Revenue fell because of lower volumes across the company's segments. Earnings fell because of lower volumes and prices, idle production charges, lower fixed cost absorption and limited F-gas quota sales.
F-gas quotas refer to regulations adopted by the EU to control emissions of fluorinated gases used as refrigerants. The regulations led to the rise in black-market sales of refrigerants, which compete with legitimate refrigerants sold by Chemours. Offsetting the declines in earnings were stronger operational performance and lower costs.
The following breaks down the company's performance by segment. Figures are in millions of dollars.
Second-quarter volumes fell 9% year on year because of lower demand in Europe, Latin America and Asia. Volumes in North America were flat because of a rise in do-it-yourself (DIY) consumers taking on paint projects. Globally, average sales prices were flat quarter on quarter and down by 5% year on year.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell because of higher costs caused by idled production. Earnings were also dragged down by illegal refrigerant sales in the EU.
As MRC informed earlier, Chemours will close its aniline and nitrobenzene site in Pascagoula, Mississippi state, by the end of the year. The First Chemical site produces aniline, nitrobenzene and nonylated diphenylamine (NDPA) lubricant antioxidant.
As MRC informed earlier, Russia's output of chemical products rose in June 2020 by 2.6% year on year. However, production of basic chemicals increased year on year by 4.9% in the first six months of 2020. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the output in January-June. Production of benzene was 106,000 tonnes in June 2020, compared to 110,000 tonnes a month earlier. Overall output of this product reached 721,000 tonnes over the stated period, up by 3.9% year on year.
Chemours is a global leader in titanium technologies, fluoroproducts and chemical solutions, providing its customers 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. 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, Del.