Chemours sinks after slashing full-year adjusted EBITDA guidance

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Chemours (NYSE:CC) -6.3% pre-market Wednesday, poised to open at a six-month low, after the company cut guidance for full-year adjusted EBITDA, citing a continuing decline in the demand outlook for its Titanium Technologies segment, especially in Europe and Asia, as well as continued high input costs.

Chemours (CC) said it now forecasts FY 2022 adjusted EBITDA of $1.4B-$1.45B, down from prior guidance of "at the high end" of the $1.475B-$1.575B range, which would still reflect growth of ~9% at the midpoint over FY 2021.

The company also revised its free cash flow estimate to "greater than $575M," including actions taken to reduce full-year capital spending to ~$350M from $400M, after previously expecting more than $600M in free cash flow.

In response to the weak demand outlook, Chemours (CC) said it will be extending a scheduled outage on one of its Titanium Technologies production lines, in addition to other cost actions.

CEO Mark Newman said the company still expects to drive earnings growth in its Thermal & Specialized Solutions and Advanced Performance segments.

For Q2, Chemours (CC) reported adjusted EPS of $1.89/share on revenues of $1.9B.