The Chemours Company announced its financial results for the fourth quarter and full year 2020 yesterday reporting yearly net sales of $5 billion, which is 10 per cent lower than the previous year.
Chemours president and CEO, Mark Vergnano, said the fourth quarter sales performance was nearly equal to pre-pandemic levels.
"2020 was an unprecedented year, but I am proud of this company and the 6,500 members of our team that delivered solid results," he said.
"Our COVID-19 response plan enabled Chemours to deliver robust Free Cash Flow as we prioritised cash and liquidity in a challenging environment. As the recovery gained momentum, we were ready to safely serve our customers and delivered fourth quarter sales performance nearly equal to pre-pandemic levels."
Higher year-over-year sales in Titanium Technologies were offset by declines in Thermal & Specialized Solutions, Advanced Performance Materials and Chemicals Solutions where customer demand was significantly impacted by the COVID-19 pandemic.
2020 net Income was $219 million while 2020 adjusted net income was $329 million.
Fourth quarter 2020 net sales were $1.3 billion, which is one per cent lower than the prior-year quarter.
The eight per cent sequential sales improvement was supported by a global macro recovery that drove sales higher in Titanium Technologies, Advanced Performance Materials and Chemicals Solutions.
Thermal & Specialized Solutions sales declined modestly quarter-over-quarter from typical seasonal selling patterns, as expected, Chemours said in a statement.
Strong sequential volume growth accounted for the majority of the fourth quarter sales performance with a partial offset from lower global average prices.
Fourth quarter net Income was $19 million while adjusted net income was $103 million.
TheTitanium Technologies (TT) segment had full year net sales totalling $2.4 billion, a two per cent increase over the previous year.
Chemours said this was the result of eight per cent higher volume, primarily driven by Ti-Pure titanium dioxide, and partially offset by a six per cent drop in global average selling prices.
Volume increased in nearly all regions, led by EMEA.
Titanium Technologies segment net sales in the fourth quarter were $691 million in comparison to $610 million in the prior-year quarter. Volume increased 17 per cent.
Chemours said this was due to a recovery in the architectural coatings, laminates and plastics markets. Global average selling prices were down six per cent on a year-over-year basis largely as a result of price changes made in 2019.
Thermal & Specialized Solutions (TSS), which was formerly referred to as Fluorochemicals, is comprised of Opteon and Freon refrigerants, alongside several other related product categories.
Net Sales in the full year were $1.1 billion, a 16 per cent decline compared to 2019.
Chemours said this was driven by a nine per cent drop in volume and a seven per cent drop in prices.
Net Sales in the fourth quarter were $272 million in comparison to $290 million in the prior-year quarter.
Segment volume was flat versus the prior-year quarter, despite higher Opteon volume from continued adoption in stationary applications and in the auto aftermarket.
Prices declined seven per cent versus the prior-year quarter, primarily due to contractual price adjustments for refrigerants as well as product and customer mix.
The increased Opteon sales volume was offset by weaker volume in other product categories, Chemours said.
Advanced Performance Materials (APM), formerly referred to as Fluoropolymers, includes the Teflon, Viton, Nafion, and Krytox polymer platforms.
Net Sales in the full year were $1.1 billion, a 17 per cent decline.
Chemours said this was driven by a 15 per cent drop in volume and two per cent reduction in the average selling price.
“COVID-19 negatively impacted demand across most end-markets and geographies with select areas of demand resiliency in our more differentiated product platforms,” the company said.
Net Sales in the fourth quarter were $279 million in comparison to $324 million in the prior-year quarter. Volume and price declined 10 per cent and six per cent, respectively, on a year-over-year basis.
The Chemical Solutions (CS) segment had full year net sales of $358 million, a decrease of 33 per cent over the previous year.
Net sales in the fourth quarter were $95 million, which is a decline of 26 per cent over the previous year.
As of December 31, 2020, consolidated gross debt was $4.1 billion, that is net debt of $1.1 billion and $3 billion in cash. Total liquidity was $1.8 billion.
For the full-year 2020, cash provided by operating activities was $807 million, versus $650 million in 2019. Capital expenditures for 2020 were $267 million in comparison to $481 million in full-year 2019.
"We ended 2020 with solid momentum as the global recovery boosted demand in our key end-markets,” Vergnano said.
“Our outlook strikes a balance between the recovery and the natural uncertainty in the progression of the global COVID-19 pandemic. Our teams have prepared for this moment; we have transformed the company to be more resilient and have invested behind key growth strategies.
“Looking ahead I strongly believe that we are ready to capitalise on our strategic transformation and create value for all of our stakeholders."