The Chemours Company
CC
logged a profit of $76 million or 46 cents per share in the third quarter of 2020, same as the year-ago quarter.
Adjusted earnings were 47 cents per share for the quarter, which surpassed the Zacks Consensus Estimate of 32 cents.
Total revenues fell around 11% year over year to $1,233 million. Sales were hurt by lower volumes across Fluoroproducts and Chemical Solutions segments and reduced global average prices, partly masked by higher volumes in the Titanium Technologies unit. However, revenues beat the Zacks Consensus Estimate of $1,172.1 million.
The Chemours Company Price, Consensus and EPS Surprise
The Chemours Company price-consensus-eps-surprise-chart
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The Chemours Company Quote
Segment Highlights
Revenues in the Fluoroproducts segment fell roughly 16% year over year to $533 million in the reported quarter. Volumes fell 11% while price declined 5% year over year. Volumes were affected by weak demand in fluoropolymer products, partly offset by improved customer demand for refrigerants, especially in the automotive sector.
The Chemical Solutions unit recorded sales of $88 million, down 37% year over year. Prices and volumes were hurt by coronavirus-related mine closures in Latin America.
Revenues in the Titanium Technologies division were $612 million, essentially flat year over year. Volumes rose 4% year over year on demand recovery in architectural coatings, laminates and plastics markets. Global average selling prices fell 5% year over year.
Financials
Chemours ended the quarter with cash and cash equivalents of $956 million, up roughly 38% year over year. Long-term debt was $4,063 million, up around 1% year over year.
Cash provided by operating activities was $299 million in the quarter while free cash flow was $252 million. Chemours also repaid the $300 million outstanding balance on its revolving credit facility during the third quarter.
Outlook
Chemours noted that it is well placed to create sustained value through the economic recovery. The company aims to cut costs by $160 million and capital expenditure by roughly $125 million in 2020.
Price Performance
Chemours’ shares are up 10% in the past year compared with a 2.9% decline recorded by its
industry
.
Zacks Rank & Key Picks
Chemours currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include
Agnico Eagle Mines Limited
AEM
,
Barrick Gold Corporation
GOLD
and
B2Gold Corp.
BTG
.
Agnico Eagle has a projected earnings growth rate of 103.1% for the current year. The company’s shares have gained around 40% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Barrick Gold has an expected earnings growth rate of 100% for the current year. The company’s shares have surged around 68% in the past year. It currently carries a Zacks Rank #2 (Buy).
B2Gold has a projected earnings growth rate of 250% for the current year. The company’s shares have shot up roughly 96% in a year. It currently carries a Zacks Rank #2.
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