CC - Earnings call transcript Q2 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day and thank you for standing by. Welcome to The Chemours Company Second Quarter Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Jonathan Lock, VP, Corporate Development and Investor Relations. ahead. go Please

Jonathan Lock

Vice welcome earnings and Newman, Chemours second Ralhan, Company's and Financial Good call. to I'm XXXX Senior Sameer and conference Executive Mark and joined quarter Chief Chief Officer. morning, Officer; The President today President by

start, presentation remind you of I'd that website, forward-looking and this on made in that that filed documents not results information supplemental Actual differ involve to are has of not business as on and other the the uncertainties statements be guarantees our and uncertainties, on statements These impact well future our may COVID-XX as no the like or including duty result risks a provided Chemours with we comments forward-looking Chemours future on events forward-looking and information. Before any call, in based the and statements developments and expectations are our to contain new operation may risks the SEC. as and update certain realized. and performance assumptions undertakes of future of described

management adjustments course from the investors refer performance. the second reconciliation included company's evaluating to turn call, highlights the presentation. quarter. will our who terms useful end in call Mark? measures CEO, and the our will believe this of With financial release the to certain to at the non-GAAP of A are review that over we During and non-GAAP this of that, I'll Mark Newman, are

Mark Newman

on earnings our our and of our the broader here energy To as end, but you Chemours the teams to passion customers, speaking for and us reflects incredible. The chemistry I excited power world. belief the joining to focus been is macroeconomic in COVID-XX, the I time that Jonathan, data. customers still this our first have Company. by be feel sharper the people, from and busy storage even call the call thank today a you challenges from recovery today. Thank climate everyone to of change driven It's has This the and to on think has creating that people you, best Chemours suppliers, part CEO to importantly, at enthusiasm I'm my drive held for investors a charged high-speed I it the the company our helping from but solve deeply energy of and world's more change products to biggest from to on

long-term opportunities, to and the a ahead stakeholders. well-positioned are we and of growth our canvas fundamental In is to of capture. rich are chemistry future, make opportunity a difference. There through which we delivering is drive focused our the plans of we our market innovation, Our XXXX, which the squarely and lays benefit to all are power have us, to full on take advantage for ensuring we positioned uniquely we that on of

revenue and second COVID-XX Turning global on first a pace. number into continued profitability now the from from the X. at We momentum of Demand the as QX highlights to continued recovery chart the quarter set quarter. from third-highest in million, $XXX across EBITDA the $XXX in to Net sales achieving from Chemours's increased records including the million portfolio adjusted quarter of billion, $X.X the quarter, the second while history. increased XX% sales prior-year quarterly

supporting all across our strategy, results of and economic and higher Technologies pricing TiPure channels. the TVS our driving the levels volumes to benefits historic Titanium Our continued demonstrate recovery

the of business. and choice. Specialized rebounding The a improved which base strong In chain challenging strong differentiator well helped execution we F-Gas beneficial in are performance global better pricing our to Thermal coming book by with & which on TVS Operationally, by We support to a relationships so from and first in becoming impacted quality are of supporting the quarter, delivering customers markets is underway The our in quarter, of reported the our building creating mutually Europe transition margin of segment, have long-term Solutions refrigerants. enabled the of we volumes HFO and another earnings and our improves quarter. customer in logistic weather the conditions, global real recovered technology cycle is in regulations implementation with growth AIM of regulations years the U.S. enforcement higher better many ahead, supply

time Chemours, We our majority customers. thank agreement in our markets, quarterly a sales I shown a quickly to dedication process which have divest like the end our at million impacted historic the segment. EBITDA. over several the results leading incredible announced Draslovka highs in of continued for adjusted in raw growth launched last to the recovered has the focus Advanced and the great close I'm the great progress hold operations just this manufacturing, the hydrogen proof stepped of this team for from our year. positioning this proud communication, Lock all around our having executed drive and Mining by thank for deliver. QX our take to XXx EBITDA involved disruptions, ourselves would Performance global achieve week, and for transaction, have entire support Meanwhile, We semiconductor anticipate on I XG Materials long-term points Chemours quarter. and and transaction of end and to the especially secular furthering The in everything for of are to to that Everyone definitive Demand year Solutions us key business also as transforming to near-term portfolio shareholders. across for shipping the which generation. over materials our our trends supply this team $XXX context businesses. we three core APM helping outcome. our to team was months the is serve like will prime With these or up growth our This we of growth customers. capture fast Jonathan support containers to and delivering Chemours used GDP-plus result would This ambition. stable XXXX has fiscal strategy take to Solutions is business to of procure we and are this to signing opportunity we we their to adjusted Mining chains

several ambitious Before our years I report turning CRC sustainability has The of I over publication to continue days things Sameer, our journey, forward become to. make an wanted ago. most one Four tradition a of XXXX which to into cover at report goals. The Chemours corporate against look significant of set progress to commitment our we a publication few annual recent topic. responsibility more chemical XXXX released the detail set more In on a the out more in of Chemours content chart discuss report for chart I'll X. We and comprehensive the to goals pursuit here to push last course set over broadly. XXXX, industry goals the a new of we a been of ourselves higher in to our we these introduced standard designed and relentless years. have

cover our the inspired a we the our When spin, weren't shared portfolio. attacked goals, and our planet, As evolved reshaping took portfolio. and with same to we them resolve but we them we have these goals an reminder, we by entirely set people, would how XXXX these transformation, achieve sure

the against teams marked As you to this and to in the board. progress clear year In continue is Star, times a me and cause that we become our because our keeping our also can priorities COVID-XX, X, exciting our that progress important see rallied This by deliver common XXXX, know goals. [ph]. have we around on our focus chart it safe on make customers, to across our so even kept of on to significant but we people North serving saw CRC

On we from our our have by XXXX baselines. greenhouse fluorinated reduced the and emissions XX%, XX% and shared our organic emissions planet, compound respectively, gas

track both compound our in emissions our for target by to gas XX% on XXXX. are absolute hit We reduction greenhouse XX% and reduction emissions fluorinated

emissions to XX% workforce With Xst significant gas workforce, be ethnic diversity ensure goal would of are XX%, we few our to on We U.S. pillar, to our the female I'm are up of inspired gets the have XX% of representation as July team. to senior the In our senior the There had XX% from our people done only like executive targeting at ago. is I but by women team to still representation XXXX, respect in success we with again work of years XXXX. net-zero our increase highlight on a nearing leadership the far. thus the overall by proud level greenhouse executive

UN products development sustainable Finally, revenue In the over goal. X/X specific evolved contribution of portfolio to a make our by

the goals. our course from is that offerings As specific broadly portfolio. goal sustainable [ph], revenue difference our contribution the UN making are closer Chemours or comes The to a we of much more of across headlines more XX% to move make of but development ensuring

our details For With financial look all I'll posted revised to the at turning Investor talk a results website. be CRC the quarter. to the review over that, turn report our Sameer? I'll before to back Q&A. things have Relations for Sameer, our guidance about please to on

Sameer Ralhan

Thanks, Mark.

basis. of announced trend were legacy driven Results a the XX% net Fayetteville settlement Turning with in quarter billion million. with detail address Adjusted and Free across across the of ago. to reflects in tailwind. we quarter, steam of global pick EPS flow onsite million to continued liabilities, demand key related the increased to a QX by providing per in cash and basis. chart by sequential portfolio. and $XXX second company-wide cover Margins chart. $XXX $X.X per pricing sales the to $XXX from more EPS on million QX million EPS several a share to of rose higher was remediation million associated markets. share. and $X.XX Delaware the weeks EBITDA $XXX which currency was add-back The second next continued most quarter site recovery improving these Adjusted end X. our slight in two year-over-year, the [ph] up $XX I'll XX% the volumes up on of charges, GAAP with $X.XX to on adjusted XX%

the our improving continued July earnings quarter of from our as Board cash. payable in quality cash approved commitment earnings importantly, of the August company, XX, dividend This shareholders of Directors overall to to amount On record of Our XXXX XX, our is quarter unchanged share. the of per more third to prior performance XXXX. will and $X.XX be the and converting to reflects quarter

X. chart to Turning

two Let's composition the cash look over take of flow took the including closer the at in charges we quarter, time. a potential impact key the

the we $XX into in with Chemours to previously a XX% a this the are of in paid which quarter entered of State This expected cost million. year. settlement announced, amount is Delaware third of second quarter be the of the As be will

Second to works. legacy remediation at chart to adjusted is EBITDA related $XXX back million Fayetteville add

As of North with state has you will the key recall, our four consent order Carolina elements.

last addressed with process addressing became operational water remediation of we which Second, which ground water, treatment; we is XXXX; air, which December in in the water related primarily the of one, this $XXX thermal have discharges surrounding item. our from of legacy and are upside of charge drinking address oxide oxidizer Third, estimate community; emissions we treatment First, million to we this quarter that addressing The that and last contamination. taken onsite in are surface supplies, to current legacy with

first bottom costs. throughout from the the As can and design over wall regulatory the place and We the the of flow bars XX the expect operations take half free at of approval the accruals wall $XXX to XXXX maintenance second illustrate cash all and on the of primarily a of during side XXXX. the barrier composed page you on build to of years. Carolina entire a XXXX chart of the of of impact and estimated is long-term barrier cost anticipate Fayetteville right-hand North quarter see million construction The monitoring

million commercial the construction be until under $XX spend these startup. operating the to per costs cash the and three year assume figures and MOU Over on year. of $X DuPont years, are XXXX. spend benefit Corteva of and next a Maintenance expected million Both cost-sharing, of roughly with approximately

of we the our teams work which doing we expect to to such live order sustainable key ensure the in role Fayetteville in practices the our the a to the enhance of site, serving work XG be play continue the markets to manufacturing key region and and hydrogen growth proud are up employment consent economy. of will are our and as a business, APM We

doing this chart Carolina We final continue in I of on also to commitments. North pieces a not our the just state to of work but the place. a its our put we're that helpful honor to impact free to understand demonstration what with project to cash the clear hope flow, of cooperatively is investors

for bridge EBITDA adjusted the review second let's the X, quarter. chart to Turning

Volume Second basis. bit TT ramp-up pricing Higher TSS. volumes a more in cover our the TT quarter material segments, and the production and and related from a compensation. QX segment attributable also all in in quarter TSS. million, cost and big costs legacy XXXX in due adjusted cost EBITDA more price significantly up in I'll $XXX and the delivered input costs Higher downs charts. was in We than contractual period provide issues. APM performance-based chain operating million operating color environmental on Raw by to drivers year-over-year a and $XXX of few XXXX. supply to inflation were increased story same across a like specific higher to higher was

chain We issues. continue and to logistics operate well despite supply global

where to chart liquidity. cover X, now Turning I'll

move we Our second cash and balance the into half the position, liquidity of remain year. strong as sheet

million. returned term of up repurchased quarter, while the the We second cash the $XX by $XX in end $XX second billion U.S. at million from dividends, loan shareholders the $XXX capex of the billion, $X million. prior was million balance cash and flow generated operating $XX quarter in $X.X the was We reduce dollar Our in in quarter. of to stock form million

a will from of on million. approach Total capital down in including billion, continue is to balanced to trailing basis, availability improved liquidity times X.X quarter. $X.X revolver XX-month times leverage prior the Net allocation. have We at solid X.X to $XXX a

the chart and be and outlook seasonal to and share steadily our reflected target. volume support chain Accelerating normalizing second We has I'll Strong increasing cover in the segment our our consumption geographies. demand gains continue towards balance growth On activity well-positioned demand. sheet operations across all meet led strong progress categories, sequential seasonal to to recovery Titanium typical markets, and for segment. quarter. Titanium Demand improved results XX, of Technologies product end supply flexibility customer our economic to and and

world. to ability logistics and issues Our robust the customer supply chain was around demand meet achieved despite

Our flexible teams manufacturing chain of circuit our performance. operating led supply and the procurement, and dedicated to record operations, work

numbers. the to Turning

contractual Volume price, supply to dealing the the X% meet Second in chain quarter sequentially. material contracts by all demand. increased circuit XX% million. sales supply points to gains prior in million walls volume an raw XXX% were some short-term constuctions. the of for we basis see industry, modestly taken support driven Adjusted net up to but sales costs Adjusted higher margin reflex. recovery. the rose and XXX year-over-year In and with negotiated expenses the Multi-year AVA by actions to EBITDA optimally global by also mechanisms, selling and the $XXX environment. Embedded growth, XX%. in associated higher was channel our Pricing the X% the volume two-quarters force operate $XXX Price by like we're our price fixed improved benefit XX% of reflecting to sequentially, results, shortages leads improved contracted channels. movements across insulated client lingering over XX% quarter, began higher increased with higher to us year preceding customer driven driven inflationary that and most both rose to EBITDA from versus improved we segment manufacturing

we expect the strong second with ahead, demand As reflecting we continued patterns. in look typical half seasonal performance

component key teams be chain driving expansion. focused customers, margin supply on all. challenges will in adjusted this of in a increase Our EBITDA supporting Normalization and are demand, XXX% achieving

chip seasonal a production by year-over-year all the shortages. the to XX. markets markets specialized Opteon across and constrained and drove with recovery, upside Moving stationery refrigerant trends. despite sequential delivered strong with ongoing automotive by contributions chart strong adoption further semiconductor Thermal and solutions driven automotive driven from regions across economic quarter improvement second

Opteon as select the partner and to Scroll solution future replace continue to he North move a quarter, customers choice. of Opteon can Chillers. as has Earlier this differentiated R-XXXA selected HVAC and products Controls America the Johnson of Air we in to that XLXX Our announced Cooled

with XXXX franchise number for Winter at the Chemours Opteon facilities. and plant. Olympics agreements the also our We support These briefing Games GWP refrigerants the on for lower of announced Opteon a

F-Gas to Looking and on by X% in lower XX% but needed from to by year-over-year X% growth the results, on points including million net Europe year-over-year demand. Segment more increased higher contractual and sequential driven recovery, million and the year-over-year prices basis. more EBITDA led to Adjusted EBITDA X,XXX to price sales Higher quarter. versus the XX% reflected demand price higher margins conditions, downs operating than in in certain quarter. prior-year a sequentially. headwind of improved QX year-over-year healthier improved demand costs adjusted in offset increased the closely the XX% increased categories, rose of modest basis product plant increased $XXX headwinds segment support mix enforcement rates Americas. sales and at XXX% a stronger volumes, Volume basis $XXX Pricing

EBITDA a in continue ahead, market XXXX. remainder the along continued normal Looking we of expect Adjusted to XX% margins recovery anticipated seasonal the patterns. for low are

well-positioned are U.S. customers next-generations HFC January adoption. our solutions is under as XXXX. for into the of accelerates AIM warming AIM from which slow caught potential EPA effect to is go X, to legacy We regulation expected to transitions to global U.S. HFCs transition support from standards Opteon Act, working

quarterly our to Advanced history. just strong net The we Turning by in the a our transportation would the our to suppliers with today. shared raw performance adjusted our ability markets. like challenge segment and that Logistics and highlighting strength meet segment demand sales to and for in our material to results and to segment. customers employees our strong enabled demand from of It's this XX, achieve the in and collaboration testament electronics, to communications, Performance I'll availability I start Materials a industrial the us quarter. benefit chart continues EBITDA cover limited with Chemours highest

be quarter. level, sometimes pricing by can was customer and drive case mix the effects this product actions product diversified We continue portfolio, as which across our muted at the to

basis with million APM volume to Given nature quarter year's of growth. ensure XX% and XX% of primarily that value our Segment million EBITDA a last XX% characteristics to increase driven of $XXX pricing initial provide. sequential EBITDA despite costs operating and Net they for a The long-term reflective second the the our guidance weighed products, work teens of journey. the $XX exceeding and notable customers the higher expectations million, improved EBITDA this improved by the XX% versus specialty over sales was growth year-over-year we our disruptions high XXX previous performance sequentially. highlights business prior-year is chain XX% growth by and supply adjusted quarter, $XX margins our demonstrates and leverage potential high of improvement top-line of down compensation. being Adjusted points performance-based related to margins,

year, percent to year-over-year Looking be we the basis. XX% low the we drive anticipate demand rest of customer full-year high in achieving continue committed to on We growth range to believe to XXXX. EBITDA ahead the teens margins remain a adjusted and the will strong in

Moving chart ahead to our Chemical Solutions XX. segment on

quarter XX% growth volume shutdown inclusive last Second in were and year. year-over-year cyanide business of products. sales from driven year-over-year portfolio XX% increase the a acid of sodium was $XX XX% our aniline demand of a glycolic continuation of an impact net robust million, by

things with a supply to the acid sales solutions offsetting of expected million chain logistics Mark environment the well. strong to our I'll improvement We that, a $XX in cost is and gold Mark? steady headwinds glycolic back quarter continue expect XXXX With as considerations from better and Adjusted momentum in over remain turn with CEO, mining to demand second Newman. the for was modest EBITDA for performance. mining

Mark Newman

Sameer. Thanks,

adjusted we our the end communicated the in upper announcement. that We for EBITDA, year are of the our raised We the these across momentum feel during earnings guidance range. QX of we XXXX, to that full EPS will previously Recall both business. had full-year adjusted figures the be our and reflect believe now updating

over This our than the Ohio We payment reflect and are of payments year, $XXX cash free our earlier unchanged We greater one-time we of generating has flow recent Mining with a the outlook, typically for to significant business MDL term. time flow the leaving to Solutions focus and cycle, strategies time, great the in including announced. our We long earnings us the flow through at over through. year. are value the the how set Sameer Xth executing divested XXXX Operating the that took impact of to maximizing will Chemours just earnings continue guidance the settlement of impact cash In in State year differentiated up million to our hard, celebrated fully be course, quickly of we cash our quality a of the remain as July, throughout excludes improving our we birthday It's believe the strong. and which well continues flown. committed on and Delaware, we company. free cash you

in six the team. last and our as We with continuing The is have to lead. people. have who future It laid so the to achieved a proud XXX Chemours upon foundation together. built all our years work our I lot a am we of strong bright great I look starts forward employees

an with each Chemours. career must lead to enjoy promise the rewarding spirit I has a us with fast and CEO, served you move continue that of and so been. succeed we to eye toward since at well entrepreneurial As Together, helping

context ignore macro about trends in and is which think I the future, the operate. impossible it As we the to

Nafion a Improvements just the examples the the environmental performance, for products foundation chemical and are footprint, cost can with world. well multiplier two long beyond company change As the Chemours. of we a innovation of Opteon proud Chemours are a chemistry and how and has heritage, our effect world. in around

eyes. the full continue this to the to look our market-leading coming deliver improvements in with I engaging help see potential future. to forward investors, help you, our of months industry over We you to the will operator, power of. us that achieve here support for believe line we the that, company and With through your appreciate future at helping open is bright I questions. capable are Chemours all the please I our in

Operator

John from Capital McNulty with first Instructions] question [Operator is BMO Your Markets.

John McNulty

start Maybe one out. to a morning. Thanks for question. taking good relatively quicker, easy Yeah, my

the little all the capture for that business, on channels. trends able in in distributor of as side side? as you a were what in color you across were the to the of that of that business, us well side contract pricing -- and and then the maybe little bit pricing saw seeing release business you a the you and maybe us TiPure bit to the Can as On speak commented give portal unpack the you to TVS

Mark Newman

Hi. great and morning, supply franchise really quarter. our Good throughout a Yeah, interest John, from in TiPure the

we distributor mechanisms As have AVA adjust our contract. and Flex pass and our to Portal channel on regularly through we our said, on pricing contractually as are through well there increases price

I we to the our production coming and but we seeing product So strong that our to seeing to to advantage on price we we arrangement our AVA AVA are high the ability single-digit continue are Maybe PPI, and the in year. think ability but PPIs mechanism channel, see and clearly is these are on and contractual also primary mid take with in more quarter based Flex that's take where this still of this through view an contractually. in year, indices, will supply published again,

John McNulty

thinking to it. it Got then to some going U.S.? that be certainly into about you you it to contributor then a sizable is like Can the when Act additive XXXX initiated help sounds quantify And to first segment, helpful gets looked growth. the the how AIM That's be TSS us and as will color.

Mark Newman

in being finalized provide and And Act baseline AIM expect year. jumps is leg the up be XX% the stationary the step of all, we're from in baseline the growth from that about and our we So expectation the a later and this are that regulations approximately should XXXX. significant believe XX% of are initial market out quarter EPA in So down we the perspective -- from first enforcement the that excited designed by we will the very especially a of

product but switching is, in our already heard become order see so technology. are I really Clearly, who manufacturers HFO we'll the more will start and as in as with OEM you people in will So line, XXXX impact the in along to significant we to of migrate have drive their call, that magnitude impact mind that some them. expectation

John McNulty

very thanks for Great, the much color.

Sameer Ralhan

John. you, Thank

Operator

is Your Goldman Sachs. from Koort with next question Bob

Bob Koort

much about Good Thank morning. of was mean very order talked in TT in flexing much. grade could more or help TT? you customer how presume look more margin in guys what to was demand. the quantify costly orders. meet I I'm you wondering you sort that might Mark, as your penalty higher to if you expect maybe wondering circuit I margins uplift I you forward, on

Mark Newman

let comment make but operating see at you QX I'll TT we business Yeah, in Sameer look going margin to expansion here, the as additional clearly with leverage from an is there which year, our a QX.

having are We need to customer disruptions. to and strong chain some on of focus supply really meeting give up expansion margin, all in addressing the

first. But and the we year, the really to customer So, our look optimize meet as as Sameer? in early demand strong to said think continue opportunities for month. through work throughout been needs we not we've able we put year, unquote to quote given I desire the the circuit

Sameer Ralhan

the there be circuits optimize markets all will Mark. supply right than more Yeah. market is for all given only now lined-up the comment in an Thanks, would to opportunity the us it drive up, expect to and but make kind as normalize of Bob, I our additional QX of phenomena be QX. we

So QX margins to be are. line with in we where

Bob Koort

recovery then in margins, with of fixed volume And and cost coming leverage it. there that surprised pricing. of of very respectable was lot Kind in no had you cadence kind Got a volume a APM, obviously improvement through.

that have competitive maybe the pricing talk that across I franchise suspected broadly improved? Thanks. would dynamic about there, So you would have can

Mark Newman

you use. on is Yeah. use towards These economic a high-value when value seeing part in of end in recovery polymers are in mix most APM commoditized There and we're a for a they more the strong bit spectrum. priced the the based are that of have

we then as in is taking finally, of So But you impact impact that there there well. And quarter. say will through the forward up our I see here the would more time were mix results. as showing move a price we through

Bob Koort

help. for the Thanks Great.

Mark Newman

Thank you.

Operator

Josh Spector is with question next UBS. Your from

Josh Spector

in if think about a or more for question. year inventory Thanks of guys. at just normal you do demand half, supply you Hey, that color within the some us my talk this And point? where TiOX constraints? on you in I in second give function taking inventories Yeah. that's when customer seasonal outlook, then your can trends guess more and

Mark Newman

like to second stated, all including in needs. remained see to our we've see of we them if our customer our especially businesses So across, we to has the chain. in action to our in strong as TiOX, entire supply are you would across supply TiOX. talking in look low able half inventory clearly, at customer's demand to inventories and sense And folks And lower be the taking continue

As into -- of we stimulus we impact TiOX demand. XXXX, correlation see impact clearly potential our coming of usually with the the high strong and look

So see yeah, second today, certainly very out demand. strong looking half we

of the for And [ph]. primary preference XXXX, is and demand, is of look QR it Some of inventory. as really impact strategy we some clearly, beyond see Type and we stimulus TBA it a could the rebuilding the

Josh Spector

have free it And high isn't slide about talked cash Okay. of appreciate Thanks, outlook, change from flow about previously, but which I the being your you returned majority to a the cash now. you on you talk in that. position shareholders, how

you shareholders do to normalized think cash basis? and quickly right holding You're you mining return you the How of getting from a be that level cash what's solutions. that should on

Mark Newman

stock pandemic. learnings And started think continue coming capital we we we There's in depths of value we shareholders So quarter. repurchases of the level prudent dividends we right COVID-XX allocation cash, our in deleveraging, Sameer clearly, being our to our through the but in the view on could then as said Ralhan, return to level through a of from as is -- comment the certain call, Sameer which and which the balanced.

we to prudently re-invest -- ask So this going while to the going view Sameer, you invest we're have I'll forward make continue balanced to in few business. a comments.

Sameer Ralhan

Thanks, Mark. Yeah.

the company do by I the from balancing way right, debt as think a Josh, few we be years. billion said, should is, to us perspective $X.X thinking want you about gross over our next reduce you're you've

of Mining the and three made, should Solutions won't way you're form be you that respect make agreement. more and solution our point With thinking I is see with balanced us and line freedom, a will operating us used to it's less than grocery Mining cash that but a flow using capital strong leverage allocation our cash sure times. proceeds be that the in combined you with Solutions, So to about is at it course, think of policy the going little degrees give in of Mining

you'll So and it introductions, that form a composed us using is investments, and buybacks. see of doing -- share balanced in

Josh Spector

you. thank Okay,

Operator

Your is America. of Leo Matthew with next question Bank from

Matthew Leo

Hi.

pricing how theoretically, do and possible, would in out how if that to that the expect flow former, the illegal function trade it price it's real moderate if when you can into we So or you, is see And Europe slowing, TSS declines more seeing a of that evidence we're it bit. any starting the Is of kind just is like the looks is refrigerant that to broadly? in are a shipping or is more income back segment, there that tangible question? to develop still perhaps constraints the royalty of company

Sameer Ralhan

your outlook we the Matt, our the contracts, on the a pricing, driven the dynamics. across of TSS with to growth It's cost rest portfolio, of mainly some on large side, our we very business. on both but secular question really multi-year it's automotive So, OEM [indiscernible]. have Out down by trend remain in market positive for

year, said as margin. pace features higher prices we illegal said if Europe. in higher has and will dynamics And we improving this America read that in a you combination is driving some see earlier we both really on you of better market endorsement, As of base In of see recovery, the that [indiscernible] refrigerant there been earlier significant North the and a this refrigerants. Europe, year, economic

in pricing a contracts. So function our performance with is of in Along quarter large America and Europe. cost North better in fundamentals the we our some the that OEM of overall down had

Mark Newman

Mark. is This

one if is, given, you Just I'm assuming on add mean could royalty I point you sales. Matt, little point the quarter

the bill this full or portfolio. in so be should a quarter doesn't the can the of It to monetization products spectrum, can be team sales the across group list. you In have fact, thing come we goal the [ph] it quarter could necessarily way optimize operate it sales, through is, about fear to the think that this

Matthew Leo

to XX% normal the of can, And more more that mix the that does flex seemed back volumes? one much portal and guess -- flex like TVA TiOX, levels? And of if with XQ Okay. mix quarter-over-quarter I shift increase in pretty like I flex contract-heavy. was in was It how XQ

Sameer Ralhan

really We think I take with previously contracts by to So a in really us sticky, work as what this more up well, ADA team as we as what in strategy supply Delaware's them. had parts decided QX said -- quality of and share back get coming of and contract better our-- in forward going we've customers long-term more our and of building on been making to XX% to part earlier towards the we said our XX%. is wanting

we have of a our very a tight leveraged market, AVA build-out So book. it's

we today. that's So where really are

in on all want Our range AVA be customers we have contracts customers. to we our grow expectation able be based them. so our don't to are of these XX% we and is of know share as to of because stay to to commitment -- some support we want that really supply to about would with you or like share able Most

we are Flex distribution of our three all channels our really TVS making to and our of dedicated a we customers of part serve strategy way view and as sure We need. can all as very

Josh Spector

thanks. Okay,

Operator

Global. line And your from of next comes question Ahmed with the Hassan Alembic

Hassan Ahmed

the dioxide, Good gains volumes in very titanium XX% great strong morning, like. sequential obviously Mark. Mark, within

market you obviously, lost all know we year-end. share much on commented regaining Now pretty had by guys your

the guys the where And with figure So I'm sort with regards will we of that conversation guess where I at year? of I'm just rapid volume in should market? lost going is yet? played be back catch-ups have grow you rate out feel how Do a share, about stand half the you we growth in the that more trying regaining thinking you to to

Mark Newman

our second to our based say, at we is the where it our to assessment demand say, today that continue that would in just second half. in we launched with reports and regain very the we based half the everyone look in on quarter, certainly strong TVS in market I it's that all I -- our likely the will we assessment have in will a and and have but fact, on I view see is we to we that share share, implementing respect -- think recaptured

is that forward. team being both very from Our able focused to supply operations the perspective on supply going chain and

Hassan Ahmed

material seen it Leone now issues sticking of more supply in Understood, have on a Sierra issues raw seems obviously while. be it in we it And South on be these on some linger Africa, to understood. side side things, the and sort will the ore of TiOX, of for

for part the prices So becoming get issue guys and thinking contracts as chlorine supply how as well bigger are seems are about availability at well. chlorine thinking you up reset And parcel it particularly a marching you pricing with that, you like? XXXX in How now look well ore? obviously as as and and is as

market process So feel what's there you the over and do how as thought about that well?

Mark Newman

our to for well-positioned Hassan, book our and outlook continue of our XXXX inputs of we by meet on with on remain to supply needs today. work based our all XXXX respect customers' our to

the or we we're ore a really optimize mentioned earlier, so, it's input, availability is such impact to supply demand the margin, some again And of as chain our that having circuit clearly, that seeing. optimize factors, other can't I high whether

proposition a we strengthening remains our this part as of customers huge really a on is part of regain our it's focus Our and supplying and share. our value franchise

been the So this focus. has

into disruptions you as be these is Sameer, optimize view into able some our to if we half comments? second other XXXX, moderate circuit will things and be more will fully. of going the any Our have transitory and

Sameer Ralhan

market contractual entering from these make secure every are We materials to other effort that that includes staggered diverse of grows, we mean and ore secure. set long-term that the in basis. just the raw Nothing We I ensure it employing. suppliers on

Hassan Ahmed

Very helpful. guys. so Thanks much

Operator

question with is Stanley. Morgan Andrews next Your from Vincent

Steven Haynes

you Hi, export whether any are slowdown this talk be and Haynes in if additional wondering bit on seeing would or little you any on Vincent. and Steven is of outlook a Staying China as trends commentary on strong for TiOX, might remaining about just if could have you type great. demand

Mark Newman

every product region, we are demand, TiOX across is in we strong of great a China continue which lines and our in our growing. to and demand On have really seeing all franchise

So has supply China respect based with and market declined on year in market exports share, inability needs. Chinese to actually this our from that assessment to producer

Steven Haynes

you. Thank

Mark Newman

Yeah.

Operator

Viswanathan question Your is with Arun RBC. next from

Arun Viswanathan

Just GT, we've for could Great, you guys taking thanks be Thanks. but disruptions comment your when several source my in flexibility chain seen purchase for you to from given that the flows through -- as for on the would curious question. supply and I'm you just areas. issues the positive? impact that issues

Mark Newman

Yeah.

earlier, inputs major we said As we of strategically. our very source all

diversify they're we Sameer as contract, day, our that said, long-term we have ensure We well ahead. supply

And is or have perspective. to it's has of don't the from the us with amazing ensure and transitory one make customer optimize circuit service lot to we our continue we remain evaluate buying production are combine procurement, plan say supplied to on view inability on in The supply So we team our well despite any our impact our to business plants aspects sort cost to up say lowest needs that, drive our job and operations, chain just to a from let traffic we at customer supply done challenges time. from the main to meet continue having that think But an our of thing. I best. to to chain, a

Arun Viswanathan

Okay, expect would over that. thanks for due some and on And side there? catch Thanks. the for mobile early over just severe year to the refrigerants extra up chip next some you shortage

Mark Newman

rest our we on through to results and extent the the inventories a to all they Most dealer remain in data that's and can, year OEMs as based to that that's noise we try of expect of half this in Yeah, see we're that some this are second the That's move will one -- where QX low of us the of year. public see indicating the areas to up probably they great extremely catch raising. the question. some

very demand from vehicle. And perspective related respond for XXXX expectation an so into customer the order and go OEMs the our rebuild to is really to as will try demand strong well ores

Arun Viswanathan

Thanks.

Operator

PJ with is Citi. from question next Your Juvekar

Eric Petrie

PJ. for on Petrie Eric It's morning. good Hi,

Mark Newman

Eric. Hi,

Eric Petrie

you ion and membranes you fuel from can or how and grow Nafion and half demand seeing electrolyzers the exchange first are your greater that did quarter currently? in cells How do pull

Mark Newman

across see segment We growth including our of to all Nafion. continue APM

and QX, business a see the pretty in our we quarter. highlighted -- kind in turnaround this in we with earlier three the we where this margin today As One, of APM significant are in saw is of expansion deep-dive phases.

and growth The second we as around of the the development is And hydrogen really product focus a through portfolio. growth entire then secular the across XG. on move GBP-plus decade towards thirdly middle

spending working and we're both ourselves the within and hydrogen very of lot a cells. electrolysis to on in development business So well money with fuel in main growth for brands of tie in the ecosystem the that economy today product

on So decade. and improvement secular in a work that going It the really I'd there growth. we lot of starts, the become middle of but see business, say continue a to that towards

Eric Petrie

replace other into just helpful. at declining in ores Florida, will that announced groundbreaking Okay, is And integration secondly, think backward ores or new I the as your mining sites? for you facility that increase production to titanium

Mark Newman

replenish That's that of primarily are to mines in at end Florida. life

great continues are our supply all but view to mining, we're seeing ore given the Florida, that risks Georgia, bodies integrated XX% complex today. chain supply great on our and based be So approximately

Eric Petrie

Thank you, Mark.

Mark Newman

you. Thank

Operator

And Roger from with Bank America. of Spitz question your comes final

Roger Spitz

XXXX? in EBITDA morning. provide sales recognizing XXXX Good be is you. us Mining Solutions. is Two, business Would that improved Thank since first June you the materially prepared the to LTM

Mark Newman

not it please? for Roger, Could me, you sure I question. I'm heard your repeat

Roger Spitz

LTM be June Of to course. you provide able Solutions XXXX EBITDA? Mining Would sales in

Sameer Ralhan

on and is at expect this you wouldn't think such in would an proceeds yes, seen the But increase Sameer. is EBIT. that strength in, [indiscernible] business even Roger, I not we that earnings raised if look -- the the jump the I Yeah. XX on possible a commentary we but we you at if about that. have basis, and on disclose I business mining the is business Why based guided QX, QX know, as don't the don't -- of year-on-year overall, you times

Roger Spitz

Got any view it. but volumes QX? might like prepare that for year-over-year QX to give guys And would what for you secondly, in you you look spoke normal seasonality of about TiOX TiOX, in

Mark Newman

but is normal said really. What half we've seasonality, not demand. a No, very strong second

Sameer Ralhan

circuit at or that I point But raised are the our Roger, more have given the running added people circuit flat the the earlier opportunity QX, would ores to on And calls. some to that the optimize running out. in call. point we into One this get on add, team going an get out point, we'll we're said as this is at further it other Mark issues flat

at customer's point, it's about all this So have. meeting the we that needs

Roger Spitz

much. Got you very it. Thank

Operator

remarks. closing turn call I Mark for the now will Newman to

Mark Newman

and Well, for everyone on we really our thanks being thankful to and us environment on in is cash with the in after that achievements, continue we when year-to-date. very And today our to corporate commitment. return the responding we so going needs, to I continue secular doing two and for review core shareholders. resolve I'm responsibility many looking our liabilities customers' challenging, businesses, our to demand, progress we're legacy growth, de-lever to to reflect just and that meeting X,XXX an quarter our selectively strong our amazing especially employees for company opportunities

delivering focused and on the a for as we team. So, the just focus, accountability XXXX. And earlier, thankful really the execution, great remain, of I said the

So, you. thank

Operator

gentlemen, and concludes disconnect. this call. conference Ladies Please today's

The Chemours Company (CC) 30 Jul 212021 Q2 Earnings call transcript