CC - Earnings call transcript Q4 2021

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Operator

Good morning. My name is Rob and I will be your conference operator today. At this time I would like to welcome everyone to The Chemours Company Fourth Quarter 2021 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator Vice conference. Chief Senior may Officer, begin your President Lock, Development and you Jonathan

Jonathan Lock

and to joined morning and Financial XXXX Newman, Good Officer. welcome and Sameer Earnings and Fourth President President Conference Full-Year Ralhan, Quarter Senior Call. and Executive I'm Chief today Vice Mark the by Officer Chemours Chief Company's

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

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

Mark Newman

cash to achieved full In will we we where for X. products margin and challenges, is high-quality on strong our reflects our we what team company-wide a you XXXX our was together several TSS, with ever of $X.X underpinned free was business growth and customers which the despite customer XXXX flow, and $X.X quarter-after-quarter. earnings APM, to business who adjusted consistent holistic by cash the strong billion. a on and And AIM can our XX% commitment time. the I strong across look chain performance workforce. auto a segment, growth contracted strategic secular was we Act. results Jonathan. billion, focus growth record safety built and strong to toughest being line on entire reliability our our you, joining both million U.S. team to sustainable year-over-year remarks TT And grow us is by year exciting delivered and generated setting truly flow conditions, customer for year across trends. value performance and whom the health through supply rose of being XX% thank $XXX Chart Despite free our this to EBITDA service results Revenue demand pull and all of deliver we our Chemours commitment the with a And up my Thank business. begin morning. to top in believe In of strongest forward achieve sales with the driven the headwinds on bottom OEM we in businesses, appreciate the our over proposition effort conversion. we book can with

believes trust our on We Chemours bandwidth just solutions APM TSS, Finally, power through for to team which business, today, we're I'm give TT, a communities proud proud wasn't and completed customers results progress with delivered also will people, of would I the commitments. and sale that our to in which focus our operate our in world we our and about Chemours. in and the customers, solutions, communities, made we Chemours industry-leading create mining reporting the the like entire contributions results. on we suppliers, confidence of the them. our chemistry. chemical businesses. through employees, of together financial to significant our the of will the better that greater corporate and XXXX their responsibility But thank planet, us

of chemistry energy, Our essential daily advanced today, sustainable our more to electronics. also is key lives is infrastructure, to so much a clean and and

emissions fact, All we're responsibly organic chemistry abatement of are to investments gas by part XX% and compounds integral to In semiconductor greenhouse And of latest emissions significant manufacture by industry chain. our we the by technology. this the supply U.S. with commitment making to reduce XX% XXXX. floor

the remediation plant. including barrier we key at wall commitments our our our to Additionally, North at focus project sites, Fayetteville, Carolina continue on

Finally, are state to example legacy the with resolution legacy good related to we address, PFAS the risk company resource to working and of DuPont Corteva damage the of us, A the actively of is in the this with past Chemours manage liabilities. natural MOU claims year resolve behind Delaware.

intent As drive generating while cycle cash to our significant we through performance forward reflects look to our Chemours flow. guidance consistent our in confidence and the free XXXX,

continue responsible enables coatings innovative to majority clean and future, that shareholders. to And from returning sheet to GWP fuel low the key thermal flow drivers, cells, in strengthening while our our balance and chemistry, advanced behind behind products All We sustainable secular growth electronics. cash of advanced free the and and beyond. invest solutions especially the to energy of

one site, in million to the operate. have to change FASC and our impact that, over I'm worksite. Chemours to have total, several think our pillar Act Ravinia And U.S. program we'd people. progress committed $XX through strong like adoption outstanding inspired where will has pillar. we're safety evolved communities Brand across entire of low to the our highlight lives improved Turning pay chambers With more this next our In to cover Officer people will helps three to proud the delivered schools trades we our charge work on we Chief around Opteon program leading Sameer review in our Johnsonville to education pursuing guidance company's to operate. feeder short financial I'd the her to back program, like AIM and refrigerant communities targets over bringing before GWP I'll million, of which our of good platforms, new Wilmington at Sameer. and Technology. Future Today, are natural early about inspired Last vibrant our discussed programs. to STEM fourth times Engineering reflects how initial and turning people our we corporate of empowerment. the for level. inspired school high initiatives, seniors called which college access In with Chemours like excellence, we doing we're the purpose over consistently investment ChemFEST headquarters, to to over This turn new which a employee help which $X.X and our many across we This through Chemours middle drive we is portfolio for education commitment the commitment under-resourced quarter. been last years. stem pillar, fourth the I'd quarter chart, The has and a the the an talk to the the responsibility for people results team communities, launched Q&A. and I'll STEM quarter, all bring education back in things ChemFEST which in the we the to schools year, investment Scarborough work Science and be we

Sameer Ralhan

today. joining everyone thanks And for Mark. Thanks, us

Before also recognize employees over I course outstanding begin our of all I for my remarks, efforts would to the their XXXX. like

report. and Your which have results, energy determination were Mark the in I privilege delivering and instrumental to outstanding financial

Chart X to turn full results. to me Let year cover the

the $X.XX Adjusted per of three in GAAP doubled and $X.X demand strong in Our EPS earned rose more drove portfolio, pricing across XXXX was EPS across performance volume $X.XX in primary a doubled share share per from by results with to XXXX. than XXXX. rebound were billion a to per Also operational year $X full than the driven year from share all backed significant strong we Full XXXX. results. net XXXX our sales more by businesses, XXXX. share per billion, $X.XX solid demand in $X.X in

point for $XXX a of was the EBITDA Our basis full-year million points the adjusted This from for or XXXX flow XXX from This $XXX on XX% improved based the be up demand year. Free full despite up resulted billion XX% of $X.XXX free the XXXX. levels. XXXX in shift is EBITDA company. cash margins adjusted prior In strong million cash to XXXX, customer consumption inventory in we generated and flow. to continues capital networking year,

cash the significant the cash reflects business generate free and of economic collective of reflects part power spend. to improve on our through to performance and Our business the earnings any of a quality effort the flow cycle,

were gains $XXX margin were portfolio, was X was Chart fourth strong of from of our quarter. most sales increased results. the million in breadth segments. quarter fourth the sales versus XX% the Turning cash quarter. resulting EBITDA to of across billion Adjusted XX% support Free and due certain year's XXXX. tax net and working needed while flow fourth Fourth fourth last of the million, quarter, XX% to to slight items in $XXX Price higher rose expansion to quarter up XX% capital our in across in volume up the $X.X to impact the quarter

results. same a the contributor was Fourth Turning quarter. up large period Price pricing XXXX. gains EBITDA $XX improved bridge $XXX to of EBITDA adjusted Chart review XXXX, million, for entire But was the X, the fourth adjusted from to let's portfolio. the quarter the million across in

on was by primarily semi-conductor the the shortages from However, most of impact our auto impact automotive than gains demand offset related more builds. to headwinds volume across OEMs of segments

be net environment we versus inflationary to are continues cost Our positive in. price despite contribution

said vigilant businesses stay ensure inflation. As we to quarter, of across I continued last in our be that ahead we the

strong now and sheet throughout to cash position, have as balance X, they liquidity, our remains year. the Chart Turning

million up CapEx end balance billion quarter, quarter. prior fourth from was at shareholders the cash flow gross reduced $XX the We million. debt of $XX the to also with the We the proceeds billion, returned generated repurchases. $X.XX and million in million sale of operating cash debt were in dividends we recognized was cash We $X.X In our billion. solution ended of $X year quarter. mining from by $XXX and of year and through fourth the the share Our $XXX

of approximately on from times X.X including Total revolver in Our to basis, $XXX million. times billion, improved down $X.X availability XX-month approximately prior the X.X at liquidity stands net trailing leverage quarter. ratio

via million long-term. from we share perspective, profile $XXX Turning CapEx with XXXX reduced also was our our impacted then, In earlier to And is in to as shares X, our Corteva. allocation. contributed total continue material balance escrow dividends million issues, XXXX. our our and as million with we assets, in to XXXX. majority amount we retired we of capital XX% $XXX the XXXX, our disciplined of commitments, million in continue several free to continue approximately cash least, and restricted MOU strengthen the our timing shifted and our by grow $XXX year-end our into debt per we at our million from The cash as reflected flow which approximately shareholders to CRC we $XXX year on to maintain in the than the on invested in account also to and shares execute to we credit labor From Since XXXX. million Chart repurchases the capital approach returned ration, $XXX million by of business expenditures Last projects through into XXXX XXXX. $XXX sheet. meet not return shares but more agreement $XXX and have cash going DuPont outstanding, This

now XX, and results the Chart Technologies our outlook Let's cover segment. to I'll Titanium where turn for

from levels the logistics XXXX, all global Technologies of all end year, and in the XXXX. Our we in deliver disruptions. Titanium saw strong course demand to issues despite with low markets, entire economy Tighter strong global recovered across over pigment continued as performance and segment was feedstock regions the the

supply Our XX Chemours to with Customers reliable, deliver succeed continues across long-term them channels. with year three as strong all high-quality despite enabled has other see issues. a strategy continue chain a relationship to supply to the sales traction of value

has we who our to base have customer flex Motors. contracted stronger welcomed our many portal never result, been in new of tightly customers and a As Anco buy want

than EBITDA the prior Turning the versus results, Price basis. Fourth-quarter million improved quarter. adjusted a despite $XXX in older fourth offset Sequential net of to sales XX% were ongoing logistics volume rose more costs margins of XX%, a Segment prior the XX% quarter. price million year-over-year while year the quarter healthy X% rose constraints. XX% X% versus year on rose to quarter. increased $XXX

up XXXX. XXXX. We up the in XXXX, For $XXX volume EBITDA TVA margins billion million then were full XX% pandemic-induced by XX% costs from $XXX lows XXXX. exited at environment in came XX%. the from the having stayed was XX% to to $X.X greeted inflationary loss in all and year sales share rose strategy million support of our $X.X in installation rising as Full Adjusted demand and year Price production. year despite XXXX ahead Price of from net billion required rose XX% return with throughout on of higher-cost some.

Looking but continue in for will time. pigment At [Indiscernible]] to part all to same into are likely ahead, and we anticipate of time, demand order markets. strong the end constraints the over moderate year, geographies the continue first

the we them and today. forward Mark customer said with the As have continuing of available highest never type in we have built book the quality felt earlier, better serve to about market look to pigment

by a shortages. automotive related strong demand quarter to and Driven Chart Turning XXXX. delivered fourth and headwinds despite XX, solutions from full-year semi-conductor to improved specialized thermal OEMs

execution throughout price off, we the drag on costs. downs. breadth to raw pricing was material enabled OEM solid, non-refrigerated performance applications our solid and deliver automotive aftermarket, despite headwinds, to and the demand year of The across of contractual us execute victory, and to financial ahead stay continue Our rising initiatives portfolio

Looking from the in at more improved the lower XX% more offset net of X% contribution quarter than fourth results, of XX% volumes. quarter Strong quarter. prior fourth year closely sales impact the price the

fourth been shortages. exceptional an was OEM XXXX a As from quarter to demand quarter across the reminder, XXXX semi-conductor of But an bills due perspective. have down auto

EBITDA $XX in to million adjusted declined As X% of headwinds, quarter. the these a result

year, up $XXX rose the XX% million, price both result as of that rose stronger sales respectively. billion volumes Adjusted improved XX% end segment. X%, margins a For GWP full $X.X from Full-year adjusted net most and and was to the XXXX. in X% We XX%, low and Opteon in across from legacy solid $XXX million EBITDA growth markets. delivered demonstrating refrigerants power XX% to of earnings refrigerants EBITDA the

choice The a expect recovery enter in Opteon of we we well-positioned with sustainable to semiconductor-related our conversion continued new XXXX XXXX. from ahead, look customers. Aim blow potential and including management same provider Opteon, solutions. global the rates At recovery Act enforcement GWP with U.S. OEM time, newest, our Chemours Europe drive the we As automotive warming to remains foam agents. continue [Indiscernible]] markets XXXX, in continued to F-Gas innovative in of market low build low a products, of for be additional will shortages

our Let's delivered profitability segment. turn Performance XX for to now throughout Chart Advanced year. our and throughout results outstanding Materials The expectations for APM exceeded has the XXXX own segment

in price the business turnaround, From chemistry shine. on Adjusted to Sales which are breadth the a offset record up XX% basis. and demand future products from power strong million in demand of than the prior continues XXX% actions membranes, the EBITDA the end advanced XX% the million As underpinning to of in and It's contained price has unlocking the costs all-time $XX potential $XXX growth quarter. to to as of class-leading our volume an high-growth continued year the energy year-over-year its fourth productivity, higher quarter. logistics portfolio XX% markets clean sharply quarter, drove portfolio. and more farmers energy the across at $XXX Strong million and in of rose key fourth electronics. gains

we top-line contributed X%, The EBITDA and strong record XX% and XXXX to top-line delivered growth, across respectively XXXX, adjusted year full with reflecting the from $X.XXXX Price volume all levels, billion growth. X% of growth lines. respectively. For the and product net XX% currency demand sales grew

dynamic margins to favorable expanded XXXX. XXXX in segment. weather-related in And XX% diverse to as we across the portfolio was price from logistics result, a product during continue XX% This the experienced a a given per We exceptional achievement cost experience challenges and year.

total, the strong excess that XXXX. Looking costs, and believe course of headwinds ahead, target raw the moderate we year. will into from in of material of We over In demand to top-line continue GDP. energy, growth underlying continue logistics we anticipate

it's input targeting in operations levels uniquely significant in the electronics, playing is We momentum fabs are advanced see a offset We [Indiscernible]] [Indiscernible]] semiconductor Whether that ATM plant shape a teflon low our to in clean in costs. vehicles. enabling help discipline will last to higher rising hydrogen, where PFA of drive helping with members electric performance. tumors in our leading building margins energy operating and efficient future. role to on technologies technology is the adjusted are also in the XX% market EBITDA and suited

fourth and Fourth the Turning PC&I in to overall for Chemical $XX mining results a fourth business the and impact portfolio year Compatibility solid of than was and changes and performance Solutions Chart in volume mining quarter in of by the Adjusted again, the said quarter by solutions quarter and of Chemours the respectively portfolio EBITDA fourth throughout focus sale to million $X XX, impacted was in gains net were portfolio full business underlying the in more quarter. the we That continue was impact quarter. sales year. million the the XX% XXXX, these actions. of segment as of solutions changes. of portfolio the was offset of X% reflecting completed price

year, Strong markets EBITDA adjusted pricing while was the million. $XXX For full-year results. sales end demand were the key solid $XX gains the lines and full million product in across contributed net most to

our cover in CEO, now such with With of Mark. as I markets XXXX ahead, world-class turn over both grades guidance. into Looking We to will to that, focused on back along across new & growth glycolic Mark high-purity Clean segment our Electronics. acid and XXXX franchise. is a the product, things and solid technical Disinfect anticipate Newman expansion continued

Mark Newman

on my remarks Thanks, Sameer. XX. Chart continue I will

no result A and XXXX. -pandemic and employees of well continued focused levels pre in strategies. Our work business reported of of our have to improve above results the hard are our execution steadily,

with will of ahead look solid we we continue improve results our year earnings to XXXX, another and to As growth. flow believe cash

adjusted projected solutions year. between after to full-year midpoint accounting between of EBITDA the is of the divestiture of our for mining project and up $X.XX. $X.X EPS $X.XXX $X.X business at billion, Our be We adjusted end last X% and the at

flow of we million $XXX XXXX, approximately $XXX of CapEx than in free of million. forecast inclusive cash Finally, greater

allocation cycle. cash to Taken shareholders the form to to To we're and through quality the higher the ability and dividends XX% free we that improve $X in our complete greater across repurchase expect reflect capital business to flow returning together, Chemours end, of these we remaining share earnings of results of our than a remain driving From mid-XXXX. repurchases. our committed billion authorization by that share portion perspective, the

create momentum to courage out strong. set the we has I the our we excellent a the like Chemours all been in be thoughts spin, laid industry for decisions to company. and of would XXXX, for The with With will new the chapter make on we is XXXX to kind of forward. which One believe foundation year have next At which Chemours. stakeholders. built in have another close difficult would lead chemistry some and

and collectively reward company team, will this engaging believe vision these spirit As heights, helps course, I our please for we agile, customers, Operator, innovation every refocus leadership, Chemours Chemours create our the the Chemours I end, can call the to future. elements: the a every be on XXXX world it, that it planet, goals. excited Chemours our of all key new to This truly our look we in To leg place line of owned our take to and to work you of contribute as to chapter will With power to solutions, the and next to ensure and better have to of of leading I'm to to challenged for buyer their of our vision, employees, work the and year. by the underpinned coming community the be this greatest employee shareholders. Chemours, with chemistry. impact, The sustainable will look forward four journey efforts that environmental open employee. making X.X, Q&A.

Operator

to [Operator Research. Silverstein pause compile the Q&A of We'll the Instructions] line first your comes question moment roster. And just for a Wolfe from from John

line Your is open.

John Silverstein

Okay, good morning, guys.

For chain the to or raw constraints, factoring continued year? fourth versus quarter if inflation. Are and there what relative that? material XXXX, to then and of the throughout factoring And supply or you're in or worse improvements issues the continues the supply constraints are and alternatives to be get for still course you

Mark Newman

good John. Hey, Mark morning, here.

momentum really our in on from the Our itself But line perspective with constraint volume ore very in assumes of had the in indicated expectations we sequentially that were industry-leading all businesses. quarter, to relieve and first guide that our a half in we TiOX were to expect And we of as call, particular, build three on down constraint ore strong QX year. demand. in we the we in continue

we start constraint. the ore year with So

but mirror be expectation over more then situation beyond Our flat QX will ore from will that is resolves QX, itself. volumes relatively to the as seasonal patterns the

we quarter share our -- especially great good you So of with momentum pricing real see which we wanted year. a just perspective, and a from demand to that businesses, all I continue. the on expect in great But good to

John Silverstein

for considering you quarter, on with prices the to increase XXXX? being gross to Thanks of then, in third X% the in guys the push inflation to higher, increase for keep X% model, is this you through pushed TBS indicators expectation top higher higher quarter And pricing of able on just through and that. Thanks.

Mark Newman

EBITDA yes to as the bridge, our to across you'll short have as take are businesses we you're excess and you some is costs. Clearly, going So entire lumpiness of able see our to move in time. price be in through answer continuing

that So we we on to which terms carefully. that those very move together. three price that real on something latitude. the it's perfect I'll not comment that's have Sameer us provide Maybe recall TBS in always ask approaches because of go-to-market how watch two timing But

Sameer Ralhan

demand flex and feel through faster right? all-in-all, on contracts, pretty opportunity prices touched you the look, good distribution we than supply AVA same about the to there's John, to even AVA an time about as prices. So what talked Mark. contract where opportunity Thanks, push the is our pass is for and in Mark the

Mark Newman

bottom Josh, our our And to is have line, say I business. TiOX expectation would

For year XX% at we the full were margin. EBITDA a

expectation this had is is that as in related lower volume. which business going mid-XXs return We a volumes Clearly, itself, business you relieves both on to cording to expectation the price to going as Our our And had this well forward. forward. mid-twenties be we to ore. as would

Operator

Your next question of comes from line the McNulty John from BMO.

is line Your open.

John Mcnulty

much Thanks taking very my for questions.

the on TSS question a business. So

how thinking for of Just about the know assumption your we guide being there's little in terms some of you're a back how a that's half XXXX plays recovery had around weaker assume there. out. the year. issues bit autos in an of in I the I

pricing that some had terms about to business trajectory through how so guess, how You thinking well also progresses earnings really XXXX? you can speak I strong you're in as of

Mark Newman

plant that Yeah. TSS impacted a Corpus in storm course, for of our good Uri question. the we John, Christi the the had thanks year. the had year headwinds auto and winter early despite OEM

being those growth year projections. XX%, we auto look with line in Opteon. the we but So we're headwinds, expect by great and all greater really When with IHS team. when at the you the that at to be Clearly, builds, look both in focused margins job of up aftermarket on those XX% forecasts OEM for than

encouraged reflects quite feel by through the year. our guide And improvement go of auto the so as continuing that. And the we we

through a offices, is lot get here seeing next And more see a market we North this in in business folks to we're will we COVID side, Europe. travel, also wave, in but the as up. better mainly our America, picking returning the expectation stationary, On pricing

aspects normal in commercial spectrum. across demand the We will the recovery more the see a refrigerant lot of

year. encouraged note clears OEM cautious by the in But auto quite indications have So our early guidance the we situation a until clearly, in itself.

John Mcnulty

Got broader as Got maybe kind it. follow-up, a just That's a question. a of helpful. it. then And

I admittedly. guidance it's to So a And that provided, at start. you wide a the look when at year range, look the decrease pretty

end would EBITDA range, So I that to figure rationale. to mean you APM And it's segments. the given out adjust range. growth, about it's for at what I you when pointing growth end X.X% low I [Indiscernible]] going to decent continued the of can't demand laid TiOX, out that that maybe what outlook of for I the that's which the basically But the could low the when the outlooks think for TSS. to you look of in Candidly, out X% be sale, get part laid the you

to end least early you want the or just, or help bar want we of that that put the Like us can to the is at set low risks we So it's could look, maybe too get it go hey, the frame type wrong, toward the range, thing? or potential of that, things you don't to and -- -- don't high

Mark Newman

through in the and some quarter the in disruptions early, auto. an There say with issue year, Semicon. it's not starting seeing a I'd we're We John, to auto we're with the has being even -- constrained Semicon or TiOX. uncertainties. been We're obviously number of unrelated did mention

this in into anything and of our I year. And being a would in on it's uncertainty starting But so year I the not than thoughtful factor that early with having lot caution think the more just some guidance.

John Mcnulty

the it. Got much for very color. Thanks

Mark Newman

you. Thank

Operator

Sachs. comes Goldman Your Koort of next Bob question from the from line

Your is open. line

Emily Chen

This is Emily on CAC for Bob.

XXXX it mentioned chain looking supply guys So a again recovery XXXX. the at economic early expected and normalization the in outlook, reflects continued you

that in you what seen the you that confidence give So have just across trends normalization? businesses,

Mark Newman

Yes.

we -- the demand in make doing anything we great saying remain clearly, that's we're and Obviously, And cases, lines. is at it, by many especially question. in disruptive. start sure we is year. pricing customers our we somewhat not Emily, all I as constrained, carefully are with sold key I in start But we're and key look TiOX markets that But are outset. in to in the working strong as all product demand would out strong fact power remains So favor. our at

TSS So will in think guidance TiOX, -- business, our growth all impact start where through the I the of -- refrigerants. to more if be blends some we growth impact, in our of see traction the in looking starting businesses really outside we're our top-line we're I businesses of Act our reflects at going to businesses, the of on year. go Clearly, this AIM

APM expectation that GDP growth portfolio. trends both driving Our that the point related our secular are plus EVs this business to around because and from of Semicon is our all on the

Emily Chen

one Can the strategic business? the Okay, then you provide new great. just more on partnerships more. in you color mentioned And TNSS

Sameer Ralhan

Yeah.

Let It's me are jump the with with the -- OEMs. automo we strategic have just partnerships the HVAT sorry, -- in. these that

are, some of and across public broad of OEM not spectrum domain are but these of Some suppliers. course, the public the in

they We -- to and as have transition new equipment. been working a

Aim the As the will models all refrigerant. the comes are they new will upgrading yes, be but in, with the and how their it initially portfolio, OEMs through working blend work regulation

exciting a be into them there's opportunities So with working to to and help new key customers, lines. transition product the our great

Emily Chen

Thank you.

Operator

line comes Markets. Capital from Your question next the RBC Arun of Viswanathan from

is line open. Your

Arun Viswanathan

How cash for like quite Thanks of first about plan spend taking But there, go to It the you sheet bit your $X.X guess, Maybe it you cash are I have the close cash. sounds quickly billion, cash uses the plans my do for the like remainder questions. and of do the looks priority and real to your Thanks. billion there? in of on about usage. balance off, first just half. Great. $X.XX $X.XX buyback billion. you a order just on can through

Mark Newman

all investors What and significant our when conversion. returning in team Sameer and we than given well. of our investors. will we've year year, look a this generation free Board as that quality management be thought I'll that XXXX has this from question. the a flow flow mind you in greater ask that third with to on COVID-XX, franchise with which follow is to coming support of half free across balanced our cash the cash and flow is, made businesses we This cash of improving is in XXXX for free believes this sense. guide in to want start more the at billion. understand a three majority Arun, great Clearly, approach earnings a out And cash

up balance stepped cash our the in year, that up as leverage of and as confident the sheet And outlook. in and terms got new flow. on actually full-year improving well shareholders, flow you the free last And so to returning majority we're so the more again. good into year we made cash really the half coming We second our of of gains see, of ratios, stepping we strength more as the

So we the Maybe on completed if have half our year forward. share generation that the other of thoughts? cash consistent to the our first is remaining And million have this Sameer, buyback $XXX have of business current commitment authorization. you with going any in

Sameer Ralhan

go just talked have the used will our Harvey we manufacturer in I Arun, to, a and we cash of reliable about the sure past. our make cash of back Mark. in is But safe operations. to in as investing Thanks, terms product,

around is And great make the APM, we on As you from have commitments in move are a exciting we our roughly franchises. opportunities responsibility stuff to We as well, about. AIM our the semiconductor CapEx, know, of on as I I all to you've 'XX right is it's that happening I the we Act ensure million Mark priority would and can attractive -- at CapEx. the we that's and do number said have look both growth for cut our TSS projects of first CapEx, there and sure why opportunities of $XXX first down on-shoring, -- my some us seen XXXX. into emissions, guide the But in way would pretty talked TT remarks and that's the as --

So we combine reduction. And said, also $XX over of that look CapEx. as debt million 'XX will Mark and 'XX that do years,

$X.X continue will our forward And that is We We'll on commitments made that. flow then last that. significant to are our stays billion pretty to march We in to we shareholders. return improvement free debt target. of gross committed majority cash

if the expect the shareholders. commitment that finish on we cash the the So our roughly in of around look to buyback half first you that's back million remaining at $XXX comments to program coming

the of We year. repurchases half have the in just first

you enhancement, about our cash So shareholders. think investment, coming cash should that's back usage majority credit to and profile how

Arun Viswanathan

just supply $XX the And mostly way Is if Thanks. and wanted right that I that Okay, chain. million and shortage as million difference or a to there's the between TSS, APM that the of about I characterize thanks sell. about issues on you the for high-end it? resolution midpoint a as understand there's think chip Would quicker versus the possible know follow-up. $XX that. guidance. high-end to

Sameer Ralhan

pretty I Or say are think lots right? situation Yeah, it's I There Arun. resolved takes, TiOX and but side. three of are growth are would opportunities puts when on there balanced. Look, across the businesses, all

earlier, strong. demand the really Mark remains As said

a that Mark opportunity the head. pretty that TSS in great us just on midpoint regulation, an we opportunity the in as as recovers, opportunity the XX% hit enforcement Europe same the efficiency interesting of on as well. And an about provides F-Gas exciting as the about us APM market there from the operation I time the and provide margin from nail getting the similarly, to mean, the well. low Act side, the opportunities. think for that the some into AIM the the there's increases I provides you a improves, margins auto OEM high-end the If mentioned F-Gas talked on improvement as So

it's environment rich and opportunity businesses. across an our on all So three

So on balanced. would I end, it pretty the keep high

Mark Newman

had. grow we're I look our the we have But businesses. at we with being we've momentum as the business customers. TiOX, said, have of when our year. all the in can very Arun I we that early guide on love we Obviously, our thoughtful And of book in ever best really

we exciting to advanced growth. EVs things as the refrigeration APM, most recovery post issues. We time, really TSS, of more commercial where just only from solving are bottleneck opportunities that are over the of many as then so world's to Semicon have working of go unlock normal COVID. growing our And - difficult Aim capacity hydrogen working auto, to in impact I sort to the plus electronics well the we're fluoropolymers to on as answer the back look achieve When at the to to only

have potential our employees, we So the of and three focus and the about businesses, these keep I'm very excited of driving our forward. leadership to team

Operator

line from of question comes next from Your Fischer the Duffy Barclays.

open. is line Your

Duffy Fischer

morning. Good

question just you it's midpoint free $XXX that a ratio higher the you last cash it's flow, much your give big still of year? which free Last than distance. to free cash you your XXX. XX% cash year, EBITDA the is flow that guys or year It's within would million than about good First flow, around guidance, are from likely conversion Is in this mind to flow. this but the free to less EBITDA year conversion is did cash convert

Sameer Ralhan

Sameer. Duffy, is No. this

one. Let me just that take

verses look year just XXXX, of was the the XXXX one you think As move we I that at biggest CapEx to this next. as drivers from

As some just release said perspective, transition the just given is I I and think will capital. we year got of also, terms from capital And working working delayed. in to going a how the the of this It's is be a in which the Arun, capital projects of CapEx more consumption working up. seasonal

bit been that's to us a XXXX applies impact XXXX, to that and So going the of across pretty have as chain as well. little inventories have light well.

as the some going you're stuff see working as move to XXXX, well. of So capital into we

it. makes the So the years at CapEx all in two you way the combination all, sense I movement more say of would given look

Duffy Fischer

grow, then, One, year, exited if look on the just a we where mine? was quick of AVA what contracts? able we are at to be if you we're going is in And of TiOX. two, think Fair revenue to ones going as many year, on that produced couple the things of relative to you over how to percent tonnes your years next you more last add couple the last tons your TiOX capacity And to your then, enough. can build so

Mark Newman

really our in And We and to a of the either To that's supplying business tightness can laid mix rest around a also product business customer best from as to we've history. strategic that guide. our but What pretty distributor or customers guided this contracted, about good I'd way and business portal. had is our of Duffy, -- you mix set is contracted we our the where book that used the with in say of year. of Yeah. we best now we've is XXXX, improved. the XX% quarter-to-quarter, is we're tell contracts both throughout market enhance our the flex

QX. able of, So to QX volume I'm relates really the be to the expect that we given show Clearly or our would an year starting beyond encouraged volumes that, volumes our capacity. growth to way capacity had on as expect QX relatively and flat so it be we're impact by But our impact as we to would that. to from well

Duffy Fischer

you, Terrific. guys. Thank

Mark Newman

Duffy. Thanks,

Operator

question Stanley. comes Vincent next the line Your Andrews from from of Morgan

Your line is open.

Vincent Andrews

us half? visibility morning, has ask everyone. you like just to of of months. sense after get have supply good give And the I your you. on Just gotten I first -- view you how sense Thank situation have challenging that much you last the comfort regarding Could over just for the more a three a work. improving on better in

Mark Newman

year, the which time. thing face is Yeah. Vincent, at of we congested were related have even are ore still of mine I in sure last say, main improved, Clearly, that supply we some logistics. pretty in to move impact you though QX TiOX. see watching the currently forward things as to the activity that enforcement we would improving a

see our QX. end the itself RBO resolving But we So our performance. in is expect more and half, to that that's again, of first to near-term really we have playing the -- into say here at

Vincent Andrews

just would I than the is a comfortably the more on that And need finish could cash Is I that assumption, around if the the XXXX you at look follow-up, year is historical your the basis you sheet that? amount for of balances $XXX with an at see walking number as in or and end ongoing the balance million. lowest year, that

Sameer Ralhan

cash. Sameer. you we're is cash really of kind where needs businesses Look, say of in investments really non-U.S. of What the should and the the I would depends Vincent, spending. what Yeah. at on versus look it sheet U.S. you're balance the this the context looking is

our is make to to the balance to our in maintain reliability continue get run we CSD commitments, -- perspective. billion And investments view a Our make sheet on businesses make and debt on back range. $X.X continue progress both

the enough needs are at and to free U.S. exact That's then cash. you the I generate cash making we returning back to of sheet look importantly that So it. on how as around go committed majority how shareholders. based versus cash, would have The and non-U.S. and we know, are U.S. can also to cash we the move sure where really into balance

Vincent Andrews

much. very Thanks

Mark Newman

you. Thank

Operator

of from Your question comes line the UBS. Josh Spector next from

is line Your open.

Josh Spector

guys, for Hey my taking thanks question.

one's on a take of couple Just Oregon.

sales Just as the to it or about already. me is your 's limits I think guess, fair most America for North supply AVA of

Europe next mean they So quarters. couple and at XQ does that North And place supply, that America dibs in just a of gets the get first your the on shorted perhaps near-term bit ships comments, to need on seasonal meet that for water and already that ramp ore you you ramp? XQ to is the in for I now, get the seasonal XQ assume it

Mark Newman

largely I their resolved customer mine meeting on contracted [Indiscernible]], when Obviously, water, we first. something book and keep grew in Clearly, I and the in we improvements business last our are it's our said we're The seeing earlier, markets. very we focused look And monitoring. at been all and so XXXX, of needs has growth yes. on shipments the at answer the are question issue is yes. the there short

that more North versus so will or of deliver contracted is ore here. some In first put percentage AP this trade-off you hey, on make flocked book of of somewhat our versus But it business. And a many So little a there's ABA being the just short-term, book. volume part Europe prop have that's and sure is, your customers of you value matter where contracted America trade-off protect quarters The with couple Chemours. no the again, to, here on we're constraint. bit a candidly

Josh Spector

is ask that think of is, is think ATP, average? significantly activity, more perhaps I maybe as maybe to than different to distribution about your quartile market a way that the another fair flex And would way spot your it?

Mark Newman

in on in reduced somewhat is Flex Flex reflect markets Our The customers the higher. markets. customers, to And available the different world global that availability on significantly you're being then is constrained. results portal prices when our which usually spot around Flex, so

have. available have And because of business We the that's we XX% of opportunity rule volume about like our and we this why -- a to always in book of to of that market our for that's distribution contracted volumes. constrain So brings thumb want Flex tight would we've made

Josh Spector

Okay. Thank you.

Mark Newman

welcome. You're

Operator

Your America. next Bank of from from of DeYoe comes Matthew the question line

Your open. is line

Matthew DeYoe

Thanks. A TSS quick ones the few morning. Good volumes. on

see to that even take business you from last just this half was was mean when XQ does saw down we to see next of get know we this the bit? why year. transpiring at kind if Is closer given we type consistently headwind And XX? of what back that the comps volume -- XX%, year case? things to Opteon ease it we've I that until should do see XQ? And down of XX until did up So to the print what little a mentioned

Mark Newman

a build just recovery vis Now, The as comp tough very I'll last ask should the you way of is volumes, read It's in and just QX. constrained comp. year-over-year auto vis year-over-year Omicron start further. and auto. maybe year constrained that to was little a Semicon on Recall for bit QX build Sameer a robust comment a a

and projecting I volumes expectation, around they're think if year this order to XX%. IHS you up at Our be look outlook,

OEM on focused continues we the park Opteon are we're so Clearly, both to aftermarket opportunities IHS as using and as car the And guide. build.

Matthew DeYoe

Okay. a then And quick PFOA. one on

you purpose but just of really announcements to some setting outstanding call risk what on So maybe cases, on what perhaps out you're in of precedent. and we liabilities made a to cadence progress MDL this looking Carolina and of DuPont how about of the through comments didn't of they and kind lot versus any settlement frame go kind kind making work get perhaps might on South the it's detail there's the other year at through wondering or

Mark Newman

wouldn't I cadence, I'd two speculate make but Josh, here. comments on

this First you and year is announced under MOU Delaware to work together last and we DuPont, framework continue settlement that the Corteva, that Chemours well the saw with year.

value way we're done company, the in that shareholders. team, for leadership that believe risk a but are potential open to settlements as we create to our the to in Secondly, reduced always

using that, relate that our with the through paths. and we fact of will have And continue work view very MOU a the shared legacy Corteva, that so I'm by to have DuPont encouraged to issues mindset. to in we discussions my

this So stay at tuned, more to time. but nothing say

Matthew DeYoe

Thanks. Understood.

Operator

from from Your line Petrie Citi. next question the of comes Eric

Your open. is line

Eric Petrie

Hi. Good morning, Mark and Sameer.

Mark Newman

Hi, Eric.

Sameer Ralhan

Eric. Hi,

Eric Petrie

I your produce wondering, give could a in second And of example saw I you we of expect estate? air to conditioning for overview enforcement. Japan an auto your and could the in But infringement good market? competitor HFO it's patent patent when was the case

Mark Newman

IP towards will as to vigorously our current our well going estate end continue -- And depend globally. of view we Hey, defend we decade. state the this passengers

decade. around And to our better And just IP to bring to so makes continue say the we defenses would our innovate through to franchise, -- product our half significant continue that customers. of this I market have IP latter for new expect through Opteon we

Eric Petrie

TiOX, secondly strengths, then changes TiOX, and and did volumes? to Altamira know I any on logistics in have the of reroute given TiOX And you Okay. routes? is so of shipping exporter a any your big trade

Sameer Ralhan

always significance. Hey teams there chain be used, here availability vendors the Eric, some port but supply this is on Sameer. Nothing and to based adjustments and of material. Look, making nothing there's the

Mark Newman

build our your organization minimal year our -- I'll customer taking up we to book customers. to Eric, procurement and worked have like disruption we service you with operations really our to don't business this your logistics say seriously just value by ensure hand-in-glove of prop customers. and And teams not

of all run had out the minimal team our three year with really but collaboration our shout make really aspects our our where to -- disruptions. I had organization customers waves was plants well of So big ops and who across COVID sure to a it teams despite logistics worked a we

Eric Petrie

Thank you.

Operator

comes from from the Ahmed Hassan Your Global. Alembic line next of question

Your line is open.

Hassan Ahmed

Good morning, Mark.

Mark Newman

Hi, Hassan.

Hassan Ahmed

How are doing? you

Mark Newman

Great.

Hassan Ahmed

Technologies. around in I of but chain larger had volume decline seasonality like understand guided in of November were your the things, I and obviously Look, the volumes and Question back one to sequentially, mid-single-digits. the competitors your XX%, Titanium understand considerations, supply constraints, sequentially down

trying regain way understand, try about basis just think share, regained your some or we lose share bottlenecks will as you volumes with stated guys should guys TiOX market year-on-year? market Will the the a in the the grow just on now you did market you continue in QX your XXXX to parcel the or you I'm and that you part consider in was? to that, how with to market you've and lost like? market that So was go-forward that And share

Mark Newman

clearly, have with great Sameer will It's Yeah, for you had overall his said among year, year. result hard variation question. the a our we you Hassan, with it's XX%. revenue share to And that TiOX when up remarks, the and quarter-to-quarter. look TBS volumes then we we some. in in the at But competitors, regained lost argue the market

our share, growing here And market doing share. with maintain that, grow So to our maintain by customers our by first. is focus but our market really slash

have focus how key we really, of strategic business We do grow. as is strategic customers good our grow and really now book our

alleviate that to move clearly, volume are relates said a as through we outlook it we I or as we year, As sort the starting first the And seeing and of for strength constrained. are we're market of inventories year the that earlier, expect the great half. to system, another year the have terms in based light is business. growth revenue this And on throughout our how whole expectation we of itself in the should

Hassan Ahmed

TiOX to Understood. a And just follow-up, again. as sticking

constraints the out -- at with things, where going as all curves in you there, rightly up. But the chlorine As are side of much there prices today out sit shuttering pricing cost the that XXXX TiOX and force. or look a their XX% And you you or pointed obviously, again, in -- producers non-integrated Could major as about the the integrated range the whole versus be have of where I'm of see between you a capacity. between guys year thinking ones? flexibility differences also toggling

or integrated be you're this could year famine feast not? to So where relative the a non-integrated or whether

Mark Newman

of our We like our of our we So [Indiscernible]]. route supply listen, on business. like book all

to We both continue and supplied be chlorine across well ore to work through time.

curve. are cost So I we're And as we then lower-cost that opportunities capacity, we we curve, do of cost our say some debottleneck our the well. -- at seeing And like plans just where as to on

Clearly, I and we're TiOX work Hassan, we'll way overall, something year remain encouraged our more are that's through. constrained, where slightly journey. starting about the in our very we So

Hassan Ahmed

Very helpful.

Sameer Ralhan

only scheme the at I look, capital thing, attractive Hassan, we on and have the quality what other TiOX our in matters technology that you capital and day, would end else. very return in operations is, technology we the of At add look of return is won't of our for The I broader on if with things. exchange the anything believe

in pride our that. take we So

Hassan Ahmed

Thank Perfect. much. so you

Mark Newman

Thanks.

Operator

further And Newman, back over for turn there remarks. you Mr. are closing Mark I no some the time. questions at call this to

Mark Newman

to customer excited have And grow free Thank our strong about you. listen, our continued very earnings flow revenue and you We're Yes. grow year and our be focus we forward all are businesses. starting demand. to you Thank going the just forward. speaking in earnings with And significant we this and of will to the momentum your year continued today. of we throw cash we very many as for interest look

Operator

This call. your participation. conference Thank for concludes today's you

may disconnect. You now

The Chemours Company (CC) 11 Feb 222021 Q4 Earnings call transcript