Despite Lagging Supply Chain, Chemours Reports Net Sales of $1.7 Billion in Third Quarter

Supply chain challenges facing the manufacturing industry during the ongoing Covid-19 pandemic coupled with unforeseen weather events didn’t thwart Chemours’ successful operation in the fiscal third quarter for 2021. In fact, the global chemistry company is a shining example that working harder to find creative solutions in the midst of difficulty results in victory.

Accordingly, the Chemours Company, which has leading market positions in Titanium Technologies, Thermal and Specialized Solutions, Advanced Performance Materials and Chemical Solutions, reported that net sales in November reached $1.7 billion. The figure represents a year-over-year increase of 36%. The Company reported adjusted earnings before interest, taxes, depreciation, and amortization of $372 million, which were up 77% year-over-year yielding a free cash flow of $244 million.

Ed Sparks, president of Titanium Technologies at Chemours, said that despite supply chain disruptions earlier in the year precipitated by weather events and the Covid-19 pandemic which were compounded by lower labor availability, Chemours came through strong. He cited the Company’s unwavering commitment to serve its contracted customers using a stabilization strategy and an “inherent capability” among its plants to back each other up as keys to a successful operation.  

In February, Winter Storm Uri brought a snow and ice storm that had widespread impacts across the US, Northern Mexico, and parts of Canada that resulted in blackouts for nearly 10 million people and infamously, the Texas power crisis of 2021. The blackouts were reportedly the largest the US has experienced since the Northeast blackout of 2003. For Chemours, the storm caused outages for three plant sites – New Johnsonville, Tennessee, DeLisle, Mississippi, and Altamira, Mexico.

“Coming out, we really focused on how we ran our plants well and how we kept close to suppliers,” said Sparks.

Throughout the year, the Company, he added, made site-to-site shipments of raw materials from Taiwan to the US in order to keep American sites operational.

“We always found ways to use the strength of our supply chain and manufacturing network,” said Sparks. “The resiliency our team has shown in the face of supply obstacles.”

During the third quarter, Chemours repurchased $67 million of common stock, repaid $108 million of debt principal and funded $100 million escrow payments under the Memorandum of Understanding agreement.
Chemours is one of the world’s largest manufacturers of titanium dioxide, a naturally occurring, nontoxic mineral upon which industries depend to improve appearances eroded by the elements and add durability.

Headquartered in Delaware, Chemours made Newsweek’s America’s Most Responsible Companies list in 2019. Comprising 30 manufacturing sites with roughly 6,500 employees, Chemours serves 3,300 customers in more than 100 countries in markets including coatings, plastic, refrigeration and air conditioning, transportation and semiconductor and consumer electronics. One of its many flagship brands, Ti-Pure, provides solutions in the form of brilliant paints, pristine plastics, gleaming laminates and durable automotive and aerospace coatings, according to its official website.

“We provide very high-quality Titanium dioxide,” said Sparks. “When a customer wants a high-quality plastic and durability, Ti-Pure really shines. “The hardest the customers’ needs are to meet, the better we perform.”

As part of its 2021 outlook, free cash flow is anticipated to exceed $500 million compared with the year prior, which was over $450 million.