WILMINGTON, Del., Dec. 1, 2017 /PRNewswire/ -- The Chemours
Company (Chemours) (NYSE: CC), a global chemistry company with
leading market positions in titanium technologies, fluoroproducts
and chemical solutions, today hosted its first Investor Day in
New York City. As part of the
event, the company updated its 2017 outlook, provided a 2018
outlook and 2020 key financial targets, and unveiled a new capital
allocation strategy.
Outlook
Chemours President and CEO Mark
Vergnano said: "I am pleased to announce the completion of
our five-point transformation plan and the beginning of a new
chapter at Chemours. We successfully delivered on our plan, which
is expected to result in improved Adjusted EBITDA of over
$800 million over 2015 levels and
reduced our net leverage down to approximately 2 times. Demand for
Ti-Pure™ titanium dioxide, Opteon™ refrigerants, fluoropolymers and
Chemical Solutions products continue to drive our results. The
strength of our portfolio is now expected to deliver full-year 2017
Adjusted EBITDA of approximately $1.4
billion and more than $100
million in Free Cash Flow."
Vergnano continued, "We believe that 2018 will be another great
year for Chemours with Adjusted EBITDA expected to be between
$1.7 and $1.85 billion. We see
continued strength across our three segments, primarily driven by
preference for our high quality Ti-Pure™ offerings and growth in
Opteon™ refrigerants. We also expect to increase our Free Cash Flow
to be within a range of $500 to $600
million, even after investing in our two new manufacturing
facilities."
"We have shaped our portfolio into a set of highly investible
businesses that we expect to continue to generate a Return on
Invested Capital in excess of 30 percent, and believe we are poised
for growth through 2020 and beyond. We have already begun
implementing our value stabilization strategy in Titanium
Technologies, which we expect to benefit our customers and allow us
to reduce volatility in our Ti-Pure™ earnings. We are optimizing
our fluorochemicals mix with the expansion of Opteon™ refrigerants,
and expect to renew our fluoropolymers portfolio through
application development. This growth will be paired with our
capacity growth in Mining Solutions. Collectively through 2020, we
expect revenue to grow at a rate of 1 to 2 times GDP, which
combined with an approximate 500 basis point expansion in Adjusted
EBITDA margin, will provide a magnified return on the bottom line.
Together with our announced capital allocation strategy, we expect
to grow our Adjusted EPS by 15 percent or greater through 2020 on a
compounded annual basis over 2017. Further, our strong financial
performance is expected to generate cumulative Free Cash Flow
within a range of $2.0 and
$2.75 billion through 2020,"
concluded Vergnano.
Capital Allocation
Chemours CFO Mark Newman said, "I
am excited to unveil our new capital allocation strategy, which is
expected to return nearly $900
million to shareholders over the next three years. We have
increased our dividend by over 5 times the previous amount, and now
have the flexibility to simultaneously invest in our portfolio and
buy back shares opportunistically. Our new financial strategy
allows us to identify and fund growth opportunities, maintain our
strong balance sheet, and return significantly higher levels of
cash to shareholders."
The company announced that the Chemours Board of Directors
approved the first quarter of 2018 cash dividend on the shares of
the company's common stock in the amount of $0.17 per share, an increase of $0.14 per share from the previous level. The
dividend will be paid on March 15,
2018 to stockholders of record as of the close of business
on February 15, 2018.
The company also announced today that the Chemours Board of
Directors authorized a $500 million
share repurchase plan. The authorization extends through the end of
2020. Repurchases may be made at management's discretion, subject
to market conditions and other factors, and may be suspended or
discontinued at any time.
Webcast
A webcast replay of The Chemours Company's Investor Day and
additional presentation materials can be accessed by visiting the
Events & Presentations page of Chemours' investor
website, investors.chemours.com.
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 titanium technologies, fluoroproducts and
chemical solutions, 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. Our flagship products include prominent brands
such as Teflon™, Ti-Pure™, Krytox™, Viton™, Opteon™, Freon™ and
Nafion™. 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
chemours.com.
Non-GAAP Financial Measures
We prepare our financial statements in accordance with Generally
Accepted Accounting Principles ("GAAP"). Within this press release,
we 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 schedules or the table,
"Reconciliation of Non-GAAP Financial Measures to GAAP Financial
Measures" and materials posted to the company's website at
investors.chemours.com.
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," "anticipate," "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 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 Adjusted EBITDA and
Free Cash Flow, 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 Securities and Exchange
Commission, including in our Annual Report on Form 10-K for the
year ended December 31, 2016 and Form
10-Q for the quarter ended September
30, 2017. Chemours assumes no obligation to revise or
update any forward-looking statement for any reason, except as
required by law
Additional information for investors is available on the
company's website at investors.chemours.com.
CONTACTS
MEDIA
Alvenia
Scarborough
Director of Corporate Communications and Brand Marketing
+1.302.773.4507
media@chemours.com
INVESTORS
Alisha
Bellezza
Treasurer and Director of Investor
Relations
+1.302.773.2263
investor@chemours.com
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SOURCE The Chemours Company