Chemours Stock Tumbles As Company Reveals Management Shakeup And Financial Struggles

The Chemours Company CC shares are plummeting today after the company reported preliminary results, disclosed management changes, and further delay in filing its 10-K.

Preliminary results: The company expects FY23 net sales of about $6.0 billion (vs. $6.8 billion a year ago), compared to the consensus of $6.02 billion.

Revenue declined Y/Y owing to lower volumes in Titanium Technologies and Advanced Performance Materials’ Advanced Materials portfolio.

Also, Chemours expects to report a net loss attributable of $(225) million to $(235) million versus a net income of $578 million in 2022.

The estimated net loss includes $746 million of pre-tax litigation settlements and $153 million of restructuring, asset-related, and other charges.

As of December 31, 2023, the company had cash and cash equivalents of $1.2 billion and $0.9 billion of revolving credit facility capacity, net of outstanding letters of credit.

Executive Changes: The company disclosed the appointment of Denise Dignam as the Interim Chief Executive Officer and Matt Abbott as the Interim Chief Financial Officer (principal financial and accounting officer).

These actions follow the decision of the Board of Directors to place current President and Chief Executive Officer Mark Newman, Senior Vice President and Chief Financial Officer Jonathan Lock and Vice President, Controller and Principal Accounting Officer Camela Wisel on administrative leave owing to pending the completion of an internal review by the Audit Committee of the Board of Directors.

Consequently, the company said it is delaying its fourth quarter results and 10-K, which was previously expected on February 28 and February 29, 2024, respectively. 

Earlier this month, Chemours postponed the release of its financial results, which had previously been scheduled for February 14, 2024.

Price Action: CC shares are down 39% at $17.50 on the last check Thursday.

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