Chemours Co (CC.N) on Tuesday beat Wall Street estimates for third-quarter profit and revenue as raised prices for its specialty and industrial chemicals helped the company offset higher costs, sending its shares up about 3% in extended trading, said Reuters.
Chemicals makers have been looking at measures to beat soaring energy and raw material costs as well as a slower-than-expected demand recovery in Europe and Asia. Last week, larger rival Dow Inc (DOW.N) outlined plans to cut costs by USD1 billion next year.
"Our Thermal & Specialized Solutions (TSS) and Advanced Performance Materials (APM) segments continued to deliver strong results despite macroeconomic headwinds and are both poised to set full-year records," said Mark Newman, president and chief executive officer at Chemours.
Last month, Chemours cut its full-year forecast for adjusted earnings, citing low demand and higher costs mainly in its TT segment.
Sales at its TSS segment, which produces refrigerants, propellants and other specialty chemicals, jumped 31% in the three months ended Sept. 30 and that at its APM segment, which makes components used in semi-conductor manufacturing, increased 26%.
Chemours' revenue from its largest segment Titanium Technologies - which produces the titanium dioxide pigment used in coatings, plastics, and laminates - fell about 3% to USD877 million in the quarter. The company's quarterly net income stood at USD240 million, or USD1.52 per share, compared with USD214 million, or USD1.27 per share, a year earlier.
Excluding items, the company earned USD1.24 per share, beating analysts' consensus of USD1.04 per share, as per Refinitiv data. Net revenue rose 5.8% to USD1.78 billion, which also beat analysts' expectation of USD1.68 billion, driven by 18% higher quarterly pricing.
We remind, The Chemours Company (Wilmington, Del.) announced that it will be expanding its Chemours Opteon YF (HFO-1234yf) capacity to help meet customer needs as they continue transitioning to lower GWP refrigerants. The Opteon YF and YF blends refrigerants are now used in millions of vehicles and thousands of retail stores around the world, with zero ozone depletion potential (ODP) and global warming potential (GWP) that is significantly lower than the legacy refrigerants.
Chemours is committed to leadership in responsible manufacturing, and this capacity investment will contribute to its goal of shifting the company’s product portfolio to offerings that contribute to achieving the United Nations Sustainable Development Goals (UN SDGs). Chemours is evaluating potential locations in the United States and Europe for the investment in accordance with applicable regulatory frameworks and is particularly interested in supporting the local communities where they operate.
mrchub.com