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The Chemours Company Reports First Quarter 2018 Results, Doubling Earnings Year-over-Year
WILMINGTON, Del., May 3, 2018 /PRNewswire via COMTEX/ -- Copyright (C) 2018 PR Newswire. All rights reserved

First Quarter 2018 Highlights

-- Net Sales of $1.7 billion, up 20%

-- Net Income of $297 million, up 98% with EPS of $1.58, up 100%

-- Adjusted Net Income of $266 million, up 103% with Adjusted EPS of $1.41, up 101%

-- Adjusted EBITDA of $468 million, up 64%

-- Completed first acquisition of ICOR International in April 2018

-- Repurchased approximately $400 million shares since December 1, 2017

The Chemours Company (Chemours) (NYSE: CC), a global chemistry company with leading market positions in fluoroproducts, chemical solutions and titanium technologies, today announced its financial results for the first quarter 2018.

Chemours President and CEO Mark Vergnano said, "Last year's momentum has continued into 2018. We are delivering improved business performance across the company driven by preference for our Ti-Pure(TM) titanium dioxide, continued Opteon(TM) refrigerant adoption, and increased demand for our fluoropolymers products. Complementing this impressive organic growth, I am pleased to announce the completion of our first acquisition," Vergnano continued. "Our first targeted acquisition bolsters our refrigerant portfolio and broadens our channel access across our markets as we continue to expand our low GWP Opteon(TM) portfolio. At the same time, we continued to execute on our balanced capital allocation strategy, repurchasing a total of approximately $400 million of shares since inception, further demonstrating our confidence in our future growth."

First quarter net sales were $1.7 billion, a 20 percent increase from $1.4 billion in the prior-year quarter. Volume growth across all three segments drove a 6 percent increase in revenue. Higher global average prices in Titanium Technologies added another 10 percent to revenue, while currency was a 4 percent benefit. First quarter net income was $297 million, or $1.58 per diluted share, versus net income of $150 million, or $0.79 per diluted share in last year's first quarter. Adjusted EBITDA for the first quarter 2018 improved 64 percent to $468 million, versus $285 million in the first quarter of 2017. This improvement was primarily driven by higher global average price for Ti-Pure(TM) titanium dioxide and broad-based volume growth across all segments, somewhat offset by higher distribution and raw material costs.

Fluoroproducts Fluoroproducts segment sales in the first quarter were $732 million, a 12 percent increase in comparison to the prior-year quarter. Opteon(TM) refrigerant sales growth and continued demand for fluoropolymers drove volume increases versus last year's first quarter. Price impact was negligible versus last year's first quarter primarily due to mix, while favorable currency exposure resulted in a benefit versus the prior-year quarter. Segment Adjusted EBITDA was $206 million, a 33 percent improvement versus the prior-year quarter. This was a result of increased sales growth and better plant utilization modestly offset by higher distribution expenses, water treatment costs and increased raw material costs.

Chemical Solutions In the first quarter 2018, Chemical Solutions segment sales were $144 million, a 4 percent increase versus the prior-year quarter. Improved demand in comparison to last year's first quarter resulted in higher volume across the segment. Price impact was negligible in the quarter, primarily due to mix, while currency movements were favorable when compared to the previous year's first quarter. First quarter 2018 segment Adjusted EBITDA was $11 million, versus $12 million in the prior year quarter, reflecting sales growth partially offset by higher raw material expenses, costs related to the construction of the new mining solutions facility and lower licensing income in the quarter.

In March, construction on the new mining solutions facility in Mexico was suspended. A civil association in Mexico filed a complaint against several local and federal authorities involved in the permitting process of Chemours' new mining solutions facility. As a result, the construction of the facility has been temporarily suspended. Chemours is working with local and federal authorities along with community leaders to address the claims in order to resume construction.

Titanium Technologies Titanium Technologies segment sales in the first quarter were $854 million, a 32 percent increase versus the prior-year quarter. Global average selling prices and demand for Ti-Pure(TM) titanium dioxide products increased in comparison to last year's first quarter, along with favorable currency movement. Segment Adjusted EBITDA was $294 million, an 85 percent year-over-year increase. Results were driven by higher Ti-Pure(TM) titanium dioxide sales, partially offset by increased variable costs, including distribution costs and expected raw material costs.

Corporate and Other Corporate and Other represented a negative $43 million of Adjusted EBITDA. Expenses in the first quarter of 2018 increased $2 million versus the prior-year quarter. This increase was primarily related to higher long-term compensation costs.

The company realized an effective tax rate of approximately 22 percent in the quarter. The company expects its effective tax rate for the full-year 2018 to be in the low-twenties on a percentage basis, reflecting the company's anticipated geographic mix of earnings and US tax reform impacts.

Liquidity As of March 31, 2018, gross consolidated debt was $4.2 billion. Debt, net of $1.4 billion cash, was $2.7 billion, resulting in a net debt-to-EBITDA ratio of approximately 1.7 times on a trailing twelve-month basis.

On April 3, 2018, Chemours refinanced its current credit agreement, providing for a new seven-year senior secured term loan facility and a new five-year $800 million senior secured revolving credit facility. The term loan was issued with two tranches, a $900 million portion and a EUR 350 million portion. In addition, the company modified certain terms and conditions of its credit agreement to allow for more operational flexibility.

Operating cash flow for the first quarter was $196 million, versus $41 million in the previous year quarter. Working capital for the quarter was a use of $192 million of cash, consistent with normal seasonal patterns.

Capital expenditures for the first quarter 2018 were $102 million, versus $69 million in last year's first quarter, reflecting the investments in the construction of the Opteon(TM) refrigerants and mining solutions facilities. The company expects its capital expenditures for the full-year 2018 to be within a range of $475 to $525 million. Free Cash Flow for the first quarter was $94 million, a $122 million improvement versus the previous-year quarter of negative $28 million.

Outlook Vergnano remarked, "Given our strong first quarter results and visibility into the rest of 2018, we are reiterating our expectation that earnings will be at the high end of our previously announced range. We have modified the corresponding Adjusted EPS range to reflect our lower share count. We also expect to deliver over $700 million Free Cash Flow in 2018. Our anticipated 2018 performance is indicative of the high returns we believe Chemours can deliver over the next three-years."

Conference Call As previously announced, Chemours will hold a conference call and webcast on Friday, May 4, 2018 at 8:30 AM EDT. The webcast and additional presentation materials can be accessed by visiting the Events & Presentations page of Chemours' investor website, A webcast replay of the conference call will be available on the Chemours' investor website.

About The Chemours Company The Chemours Company (NYSE: CC) helps create a colorful, capable and cleaner world through the power of chemistry. Chemours is a global leader in fluoroproducts, chemical solutions, and titanium technologies, providing its customers with solutions in a wide range of industries with market-defining products, application expertise and chemistry-based innovations. Chemours ingredients are found in plastics and coatings, refrigeration and air conditioning, mining and general industrial manufacturing, and electronics. Our flagship products include prominent brands such as Teflon(TM), Ti-Pure(TM), Krytox(TM), Viton(TM), Opteon(TM), Freon(TM) and Nafion(TM). Chemours has approximately 7,000 employees and 26 manufacturing sites serving approximately 4,000 customers in North America, Latin America, Asia-Pacific and Europe.

Chemours is headquartered in Wilmington, Delaware and is listed on the NYSE under the symbol CC. For more information please visit

Non-GAAP Financial Measures We prepare our financial statements in accordance with Generally Accepted Accounting Principles ("GAAP"). Within this press release, we may make reference to Adjusted Net Income (Loss), Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, Return on Invested Capital (ROIC) and Net Leverage Ratio which are non-GAAP financial measures. The company includes these non-GAAP financial measures because management believes they are useful to investors in that they provide for greater transparency with respect to supplemental information used by management in its financial and operational decision making.

Management uses Adjusted Net Income (Loss), Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, ROIC and Net Leverage Ratio to evaluate the company's performance excluding the impact of certain noncash charges and other special items which we expect to be infrequent in occurrence in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter.

Accordingly, the company believes the presentation of these non-GAAP financial measures, when used in conjunction with GAAP financial measures, is a useful financial analysis tool that can assist investors in assessing the company's operating performance and underlying prospects. This analysis should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. This analysis, as well as the other information in this press release, should be read in conjunction with the company's financial statements and footnotes contained in the documents that the company files with the U.S. Securities and Exchange Commission. The non-GAAP financial measures used by the company in this press release may be different from the methods used by other companies. For more information on the non-GAAP financial measures, please refer to the attached schedules or the table, "Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures" and materials posted to the company's website at

Forward-Looking Statements This press release contains forward-looking statements, within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to a historical or current fact. The words "believe," "expect," "will," "anticipate," "plan," "estimate," "target," "project" and similar expressions, among others, generally identify "forward-looking statements," which speak only as of the date such statements were made. These forward-looking statements may address, among other things, the outcome or resolution of any pending or future environmental liabilities, the commencement, outcome or resolution of any regulatory inquiry, investigation or proceeding, the initiation, outcome or settlement of any litigation, changes in environmental regulations in the U.S. or other jurisdictions that affect demand for or adoption of our products, anticipated future operating and financial performance, business plans and prospects, capital investments and projects, plans for dividends or share repurchases, sufficiency or longevity of intellectual property protection, cost savings targets, plans to increase profitability and growth, our ability to make acquisitions, integrate acquired businesses or assets into our operations, and achieve anticipated synergies or cost savings, and our outlook for net sales, Adjusted EBITDA, Adjusted EPS, Free Cash Flow, and Return on Invested Capital (ROIC), all of which are subject to substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Forward-looking statements are based on certain assumptions and expectations of future events that may not be accurate or realized. These statements are not guarantees of future performance. Forward-looking statements also involve risks and uncertainties that are beyond Chemours' control. Additionally, there may be other risks and uncertainties that Chemours is unable to identify at this time or that Chemours does not currently expect to have a material impact on its business. Factors that could cause or contribute to these differences include the risks, uncertainties and other factors discussed in our filings with the U.S. Securities and Exchange Commission, including in our Annual Report on Form 10-K for the year ended December 31, 2017. Chemours assumes no obligation to revise or update any forward-looking statement for any reason, except as required by law.


MEDIA Alvenia Scarborough Sr. Director, Brand Marketing and Corporate Communications +1.302.773.4507

INVESTORS Alisha Bellezza VP, Treasurer and Head of Investor Relations +1.302.773.2263

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