Chemours Co (NYSE:CC) an international chemistry firm with major market positions in titanium know-hows, chemical solutions and fluoroproducts, hosted its first Investor Day in NY City. The firm revised its 2017 outlook, offered a 2018 outlook and major financial targets for 2020. It also introduced a new capital allocation plan.
The highlights
Mark Vergnano, the CEO and President of Chemours, expressed that he is delighted to report the completion of their five-point transformation plan and the starting of a fresh chapter at Chemours. They successfully delivered on their plan, which is projected to result in enhanced Adjusted EBITDA of more than $800 million compared to 2015 levels and lowered their net leverage down to around 2 times. Demand for Opteon™ refrigerants, Ti-Pure™ titanium dioxide, Chemical Solutions and fluoropolymers products continue to lead the firm’s performance. The strength of their portfolio is now projected to deliver FY2017 adjusted EBITDA of around $1.4 billion and Free Cash Flow of more than $100 million.
Vergnano added that they consider that 2018 will be another remarkable year for company with Adjusted EBITDA projected to be in a range of $1.7 billion to $1.85 billion. They see sustained strength across their three divisions, primarily led by preference for their top quality Ti-Pure™ offerings and development in Opteon™ refrigerants. The CEO of Chemours stated that they also project to increase their Free Cash Flow to come between $500 million to $600 million, and that too after investing in their two new manufacturing facilities.
Vergnano further stated that they have shaped their portfolio into a set of notably investible businesses that they project to continue to record a Return on Invested Capital in surplus of 30%, and consider they are set for development through 2020 and beyond. They have already started implementing their value stabilization plan in Titanium Technologies, which they project to benefit their consumers and allow them to reduce volatility in Chemours’ Ti-Pure™ earnings.
