International. Chemours released its fourth quarter results and 2016 total results, in which the Transformation Plan delivered earnings improvements and reduced net leverage.
In the last quarter of 2016, the company generated net sales of US$1.3 billion. Net loss of US$230 million or (US$1.26) per diluted share, including pre-tax items such as: PFOA settlement charges of US$335 million, impairment charges of US$13 million and additional restructuring costs of US$11 million. Its adjusted EBITDA was $239 million, while Adjusted Net Income was $5 million, or $0.08 per diluted share, including ~$50 million of fiscal provision.
Meanwhile, in all of 2016, Chemours achieved net sales of $5.4 billion. Net income of $7 million or $0.04 per diluted share, including pre-tax items such as asset sales gain of $254 million, PFOA settlement fee of $335 million, impairment charges of $119 million and restructuring costs of $51 million.
Its adjusted EBITDA was US$822 million. Adjusted net income of $187 million, or $1.02 per diluted share, including ~$50 million of tax provision.
Other highlights of the company are the following:
- Cost reduction of approximately $200 million in 2016 due to the Transformation Plan.
- Cash enhancement in operating activities by ~$412 million in 2016.
- Withdrew $385 million of long-term debt through December 31, 2016.
- Net debt of $2.6 trillion, ~3.3 times net debt to EBITDA.
Mark Vergnano, President and CEO of Chemours, said, "2016 was about transformation; our Five-Point Transformation Plan delivered results on all fronts: cost reductions, portfolio rationalization, growth opportunities, focused capital investments, and cultural change. We reached our cost reduction goal of $200 million and generated substantial revenue from asset sales. At the same time, we optimized our TiO2 manufacturing capabilities and seized the growth opportunity of Opteon refrigerants. In addition, the recent settlement with DuPont mitigates uncertainty surrounding the potential outcomes of the PFOA in terms of multiple litigations. Between our strong business performance and the recent liquidation of PFOA, we significantly improved our earnings and liquidity profile, and strengthened the company by reducing debts and facing key debt – all good results for our shareholders."
