The Chemours Company recently announced its financial results for the first quarter 2022. Company's net sales were $1.8 billion, 23% higher than the prior-year quarter. Volume and price were positive contributors to the improved results, growing 4% and 25%, respectively, on a year-over-year basis. Currency was a (2)% headwind, while changes in the portfolio accounted for the remaining (4)% difference on a year-over-year basis.

 

First quarter net income was $234 million, resulting in EPS of $1.43. Adjusted net income was $239 million. Adjusted EPS was $1.46, up $0.75 vs. the prior-year quarter. Adjusted EBITDA for the first quarter of 2022 was $403 million in comparison to $268 million in the prior-year first quarter, a result of higher pricing and volumes partially offset by cost headwinds related to raw material cost inflation and challenging logistics environment. Price vs. cost differential continued to be favorable in the first quarter. Currency was a headwind vs. the prior-year quarter.

 

“Our outstanding first quarter performance reflects the structural improvements we have made in our three industry leading businesses and the long-term secular growth trends underway in our TSS and APM segments,” said Chemours President and CEO Mark Newman. “In our TT segment, we continue to manage through ore challenges, which we now believe will continue into the second half of 2022, while serving our TVS contracted customers and supporting their growth. Our businesses continue to perform well against strong customer demand and are positioned to grow in 2022, despite the global economic uncertainties, exacerbated by the conflict in Ukraine and ongoing COVID-19 related lockdowns in China.”

 

FY 2022 Adjusted EBITDA is now expected to be between $1.475 billion and $1.575 billion vs. prior guidance of between $1.3 billion and $1.425 billion. Free Cash Flow is expected to be greater than $550 million vs. prior guidance of greater than $500 million.

 

Newman concluded, “I’m proud of the way our global team continues to innovate and collaborate to meet strong customer demand despite persistent supply chain challenges. Given the secular strength we see in TSS and APM, we are raising our full year Adjusted EBITDA and Free Cash Flow guidance while acknowledging that ore constraints in TT will continue in the second half of the year. As a management team, we are fully aligned on our four key strategic priorities – improving the earnings quality of TT, driving secular growth in APM and TSS, while managing and resolving legacy liabilities, and returning the majority of our free cash to shareholders.”