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Mar 31, 2020

Chemours Q1 2020 Earnings Report

Chemours' Q1 2020 results reflected solid performance amidst early COVID-19 impacts, with strong balance sheet and liquidity preserved through cost reduction measures.

Key Takeaways

Chemours reported Q1 2020 net sales of $1.3 billion and net income of $100 million, or $0.61 per diluted share. Adjusted Net Income was $118 million, with Adjusted EPS of $0.71. The company enacted measures to protect employees and reduce costs by $160 million, while also reducing FY 2020 CAPEX by $125 million. Due to demand uncertainty, the company withdrew its FY 2020 guidance.

Net sales reached $1.3 billion.

Net income was $100 million, with an EPS of $0.61.

Adjusted EPS was $0.71, an increase of 13% year-over-year.

The company is reducing FY 2020 costs by $160 million and CAPEX by $125 million.

Total Revenue
$1.31B
Previous year: $1.38B
-5.2%
EPS
$0.71
Previous year: $0.63
+12.7%
Gross Profit
$298M
Previous year: $296M
+0.7%
Cash and Equivalents
$714M
Previous year: $697M
+2.4%
Free Cash Flow
-$62M
Previous year: -$177M
-65.0%
Total Assets
$6.95B
Previous year: $7.33B
-5.1%

Chemours

Chemours

Forward Guidance

Due to the uncertainty created by the COVID-19 pandemic, Chemours is withdrawing its full-year 2020 guidance but is taking steps to manage the current conditions.

Positive Outlook

  • Implementing protocols to safeguard employee health and well-being.
  • Reducing FY 2020 costs by reducing overhead.
  • Reducing FY 2020 costs by reducing discretionary spend.
  • Reducing FY 2020 costs by reducing CAPEX.
  • Engaging the Chemours team to serve customers.

Challenges Ahead

  • Uncertainty created by the pandemic.
  • Withdrawal of full-year 2020 guidance.
  • Potential limitations on employee travel.
  • Possible adverse effects on personnel health and welfare.
  • Potential disruptions in supply chains.