Jun. 18 at 11:01 AM
$CC Chemours sees Q2 adjusted EBITDA
$215M-
$225M
The Chemours Company, a global chemistry company with leading market positions in Thermal & Specialized Solutions, or TSS, Titanium Technologies, or TT, and Advanced Performance Materials, or APM, provided an update on its Q2 outlook. For the Q2, due to better-than-expected performance, TSS now anticipates a sequential increase in Net Sales of approximately 25% driven by strong demand for Opteon Refrigerants, in connection with the stationary transition to low global warming potential refrigerants under the U.S. AIM Act.
Consistent with this increased demand, TSS also projects a sequential increase in Adjusted EBITDA of nearly 40% for the quarter. APM's Adjusted EBITDA for the Q2 is also anticipated to increase nearly 25% sequentially due to stronger overall cost performance, while Net Sales are anticipated to be within original expectations of low teens sequential growth. For TT, the Company anticipates overall Net Sales for the Q2 to be in line with the segment's high single-digit growth expectations.
However, Q2 Adjusted EBITDA for TT is now projected to decline approximately 15% sequentially, due to operational disruptions at its U.S. sites. These disruptions were primarily caused by a rail line service interruption impacting feedstock mix and other limited operational issues. In order to fulfill customer orders due to the rail line disruption, the Company elected to consume higher-cost ore feedstock, which resulted in incremental costs of approximately
$15M in the Q2.
The costs associated with other one-time operational disruptions are expected to be approximately
$10M for the quarter. As a part of the Company's strategic focus to resolve legacy litigation, under the Strengthening the Long Term pillar, the Company now anticipates overall corporate costs for the Q2 to be slightly higher-than-expected in connection with the ongoing New Jersey trial.
Overall, consolidated Net Sales for the Q2 are expected to be at the high end of the original range, now anticipating a sequential mid-teens increase. Consolidated Adjusted EBITDA is now projected to range between
$215M-
$225M, with consolidated Free Cash Flow projected to remain positive in the Q2.
