The Chemours Company (CC) 28 Apr 232023 Q1 Earnings call transcript

Good morning, and welcome to the Chemours Company First Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to turn the call over to Jonathan Lock, SVP and Chief Development Officer. Thank you. Please go ahead.

morning, good and Julianne, everybody. Thanks, Chemours Welcome Q&A Quarter Earnings First Call. to the Conference XXXX Company's I'm Mark and today Sameer joined by Ralhan, Officer; Chief Senior and Executive Vice President Chief Officer. Newman, Financial President and

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

evaluating that end reconciliation are financial our During presentation. are useful the certain to and included course non-GAAP investors company's of refer our this we the and at adjustments believe will release non-GAAP terms management the performance. measures of in call, to of A

our a This alongside As prepared full to a plus our earnings Q&A. our deck focus posted been earnings remarks, our release. purely will morning's have call transcript on reminder, website

With that, CEO, I'll our turn Mark? the call Newman. Mark over to

and you Jonathan, this all thank you, morning. Thank for joining us

improvements margins, portfolio. a implemented optimization in of products remain our and secular costs the and to our technologies. deliver work moderating strength TT as needs throughout underpin raw quarter growth faced measures testament continue the we portfolio. our in challenges overall strategic Our which is strong TSS material first world with in recovery performance gradual at emerging by and and the well the as the year many a to across thesis confident Despite APM the cost segment,

are on reaffirming macro we the guidance and its our strong full of impact the necessary. but potential monitoring a as of We're the to the environment the year. acknowledge are and uncertainty adapt first closely year prepared second we quarter, half With we situation,

to that, With Julianne, questions. let's move

Our [Operator Sachs. comes Duffy from Goldman Instructions] Fischer first question from

on First TSS. question just

step-down over benefit year what's down, from kind you last much can has pending seen the price shift? you've of how of or the the the HFO And With come go mix the the how step side much the through HFC HFC in being has U.S. of come what from this kind of squeezed your be will year And volume? market? getting HFO on kind expectation market just for the the share and

Yes.

great the last question, down that year this level step XX% down. there's year at a Duffy, as step the you XX% of recall, continues through So end of where

with there market the would of -- there's a be year down. the ahead And that constrained in prices. step continue will will obviously, supply, our So to support in second potentially folks buying view that of half be

We did to but last year, we we do not market significant expect year-over-year the dynamic. saw price remain like expect increases

a as And is well saw then clearly, auto our both first HFO really volume quarter you in market, on benefited portfolio, which OEM which to HFO strong adoption volumes, your in growth us. tied on question the as

ask to couple I a big the Sameer going I'm So those think to more are comments, but headlines. make

only think Duffy, And realization. Mark. other I add you think you of the the should as is, about comment Thanks, the would kind really about pricing,

view, and not the maximize the we from the can customers the just make point we one about just to quota optimization of across down, As pricing, meet think needs the pricing really the as of on just steps product side sure all portfolio well. think about

by just rather product. about the So across problem focusing optimization think product an portfolio product on

didn't go another again, seem back their to again. significantly sell-in sell-out ago, any has customers than what lower And Fair where you been inventory there in to on the anywhere. your system TiOX, be then Again, enough. quarter a TiOX is year

maybe triangulate summer you So build And of just how the we've what on -- did your inventory, when much TiOX confidence as you and we we'll through the that or kind to gives as of last sell-out you think destocked get it is somewhat do today? their from over back math the fall sell-in can seems like where even side?

Yes.

a started Sequentially, recovery. X% year-over-year. predicted but expect slowly. down up So We year we the relatively volumes gradual were off what our to be

with the in America And recent seeing of here flow. As we're some we behavior Europe the we're to of news market, more North is look the over then and seeing extent, cautious in at what a destocking China. some signs is bit little

look expecting are As gradual recovery. we we to the a whole year,

stories sequentially expectation not the double-digit Sameer for sort a on of recovery, of But sequential sentiment for in given QX of we're into to a comment year our Our rapid growth. the going North some are basing main volume would America. say but now. sort ask those be I'd I'll here further,

Yes.

covered points. I key you Mark the think all

be second at a the you're volume the sequential as demand into to as get about a think perspective, from is I kind But little about a expect weaker as we Duffy, we really, the perspective, than the TiOX affirmation, of to the going going into look quarter. improvement year. guide from you think if So double-digit we think the beginning what of should guide, we thought

from Ahmed Advisors. Our Alembic Hassan from next comes question Global

sequentially. wanted as volume touch take up look your I one of the just at sort And of X%. were I landscape, TiOX a well. take mean, look, as volumes, sort significantly look had a sequential as on large competitors Just they higher to at gain I of

in think we I'm you How trying losses? seeing that? about share, any are So market understand should to guys terms globally, just of

Yes.

-- think Tronox. referring I you're probably to So listen, look when we at

year-over-year at XX%. look last So from when or down XX% They're the we're down I comparison, XX% year.

some mainly I So And are that where on a attribute basis, delta. I people admit strong is would there would relative to that. regionally.

for demand over and circuit full the focus a -- running focused market year. that tell being also against the focused you adjusting very would on more I we are on cash business our on

think looking growth volume so are very, our how I starting in comment, thoughtful next again, market. in And approach playing the as we're double-digit cards said well. I for very we we'd quarter. about we But my earlier And the be

last cases, And in I then long-term contracts, tied would which, to share lot are many on our is requirements. make is of a point business the of

So our I'm quite of represent by significant share confident shift MNC It's of a any more and competitors. between that us regional this really doesn't mix some means. other a

a the quick Very helpful, full guidance. Mark. the just on guidance -- year question And

of QX improves, of China that at I'd the like And think things to those You obviously and year, reopening, the annualized estimates, guys obviously, and well. billion beat like this EBITDA, wonderful demand already results all improve $X.X as right? think of through course run-rating handily sort TiOX you're I'd to

think don't the $X.X $X.X billion conservative? mean, I reiteration a billion bit to seems So you

So I Hassan, view And I hand, good think macro a the careful. we with be given the and and of think in uncertainties was, point particularly sense our global over-delivers. this we of made U.S., here banking year to some sat uncertainties are in XQ the the all here kind team that as a under-promises at in of it

view year guide. think that I full we reaffirmed our so that it's have And with

could some Clearly, the go there second which are either half, aspects in way.

well. full guide. to this reaffirm so I'll make is And our ask think But our I point year perspective comments to a Sameer at as few

at think probably saw going the And from better be little place in at than QX, we the it's when where about your of beginning Fair the what point year guide, had But from is gave to the a of of moving to APM of we you at beginning TSS, business as macroeconomic of a kind what the look we than pieces, we and there's at year. TiOX course, said, generally year, from a we the beginning of if as kind Hassan. given performance the a the from But weaker we the in thought lot we overall, this reflected side. at gave we I are, what that year. Thanks, guide were the the earlier, as and of business Mark we at perspective beginning said into this. perspective, line where of

that's and are reiterating you when three at where think of when the were businesses year about how now should beginning we guide. the we guide the the So the they gave

from McNulty from BMO Capital Markets. question John comes next Our

So so on or one first maybe TSS. the Mark,

kind that of of into expected of year the XXXX mentioned really half second you the passing kind in in going in You HFCs. some step-down strong that demand

of guess, your that Your I HFOs volumes this are than some of first pretty for any something darn strong pull actually are expected you ahead in Or or in else? Opteon earlier is down? step -- the quarter. seeing

I and in what's to strong Yes. -- volumes saw. the volume Auto automotive drive SAAR we strong that helping QX the Europe what's both in think U.S. volume were John, was driving

the volumes more The with the full of where think And building for companies the automotive we would cars rates, are throughout auto continue normalized. is one so think interest Clearly, be chain supply do year? us I higher does as that year, with question go? question the

our say stationary record HFCs we the driven working AIM in as but Opteon side. strong is well. on in TSS of based strong as effective being also and F-gas then QX an continued driven by performance it's framework by I'd part auto, said in So adoption And earlier,

recovery, a out a And So strong. volume this expectation listen, in as on cost little TT, But I starting great exit be expect TSS our get have as expected. focus of year. could the back than that and Sameer year. TSS gradual really, the we would starting a XX% to business is that the is said, very we with to we EBITDA margins reduction block, weaker business think,

growth business the business in really the TT. cost the TSS as both the APM working well the of So side side and team's of on in as

it. Got

a Okay. And maybe just then TSS business. the on follow-up as

which of constant margins through be about the go this margin price of like stationary. XQ kind the just about as year little push guess a given margin And higher here? the just auto, snapped that think Is quarter? because think we strongest less in bit of when kind big should of it? the refrigerant demand bit that way should strength way more it? the normally, of autos, little back degradation quarter improvement So really first I here a we I business, dip of to be the is So nicely the saw. seeing the kind think margin lack got right expecting and about we story right to you've the kind the we Is in from XQ a the to that kind isn't

Yes.

comparison think it to the a that QX, I our were pointing and there QX come. more the aberration investors number listen, had factors that So for fact I as of think an than we made relates to of to you through anything taken

expect in saw year are the quarter, the somewhat would our it TSS, in at year. full costs. attractive as margins business look to I higher expect margins, is I be no, top in based low this But year, comparable -- year-over-year I you on margins last line with EBITDA slightly input which our double very As down we Clearly, think all to growth a that EBITDA digits Sameer? has

from the the John, about should, impacts QX to last at we a seasonality want perspective, point to margin Yes. out kind you as think, we year, the I if you basis year. a said, I had overall, But full of which comparable Thanks, some in just year on Mark. impact, think Mark have almost look always last QX, margins. one-offs. the that

impacts slowdown know, happen the a you first you X automotive of at in sales of more the QX time, the margins as Hemisphere basis. should and some in the on comparable comparable overall, which Southern you -- part that we of expect margins. quarters But year, well, the if look the have the As

from Spector Our next Josh question UBS. from comes

Josh. Cannon -- sequentials also think you in hit even auto just the made were kind is how the else the that for move a just year. on anything like we ahead James volume I'm impact? in builds XQ more year we It TSS there? side. little on a as of and I in where about wanted is channel that drill should This Or through particularly fill the wondering, on And strong? of a segment the seems little came to

Recall is OEMs for adopted say their auto had I'd side. of Opteon that refrigerants previous blends stationary clearly, But Opteon we many the -- continued a said that on earlier, James, call Yes, stationary there in equipment. our as our a component growth. have told is I adoption the

some seeing well, adoption of foam side we're of other HFO the impact chemistry on the stationary specialty well that side. as as So on as our

versus is clearly, terms was the So growth auto broad-based. in QX. pretty build strong But quite in helpful expectations, of certainly the

kind you would I add other is think we of are supplier. Sameer, color is Tier only to, the James, this the about Yes. as Solutions, Opteon X

direct and the of sight a we into much inventory. bills, line So limited there's pretty have a

slow quickly that in up So our down or pick demand we see business. pretty

a adoption Okay. Yes. about OEMs normal maybe that seasonal as does that, just into what in a of think offset to uplift quarter? think first And would the if I kind I follow-up quarter, of pulling forward the second as

our a closer in in full being out full to year tend our guide, to not the terms of to We overage as IHS QX thoughtful clearly, outlook. So stick here we're forecast very year project auto concept.

So positive relative would seasonality. to clearly, or either rate in of what could auto the expect beyond a QX we a factor builds negative normal be

from Markets. Our Viswanathan Capital next question comes from RBC Arun

similar some I guess question have a I others. those to of

seeing What and just But just some you higher. seasonally remind led think QX So items million, north could in the year the be of what about this differences the QX lower off, that. to you first would the that of that of, are should affect $XXX kind obviously, seasonality? you annualize was can't say, QX you're that QX of number? us total And normal onetime that if

Yes.

I they'll want give talk happy IR you gone more color. you to the if be team, think through to And obviously, QX deltas. we've the to

strong on went the clearly, those auto see that year. the the QX. the it think QX. we're as start I in Europe clearly builds year in is stronger think is detail we we is start through call. delta we Europe some in better. persist main last We'll seeing I if as feeling But

think I cautious, And that that hotter more season how cooling weather translates the word. will into summer. with I is U.S., a In if see outlook use the could normal in the we a

builds. how the season year, So that of plays I auto look the we'll could along think at with seasonality, as think in our we affect out temperature terms summer of

LIFO and what the of Sameer for what want use their then just And could buying up we people half I down of are looking normal second in year, versus step quotas be reaffirm the to seasonality. that would be positive a HFCs the the ahead on to so said is QX including we a But we as tends our number and taken last earlier items, year guys you had which some to items business. of through that this be have said, weakest that a impacted QX quarter quarter. very before. seasonal really

APM. on Great. And then just

seeing side. little electronics from to bit what You also guess, be, I a seem the different we're on

of the So maybe maybe just that kind and APM areas you're end seeing of walk any? through the markets of strength weakness in some some highlight of and if there are

APM to distinct Solutions. markets, volume and a free APM Materials inputs two candidly, growth kind mix And be deemphasizing of are Materials. applications, Yes. well, to are are is where These also saw Solutions industrial we fade. sensitive." economically Performance broad on up Advanced has we some "more as drive portfolios. Advanced the Performance -- we tends There

to any In terms of PFA our is areas Teflon integral fab. new of strength, semicon

building PFA quality, lower of new size our where still on focus high-purity chips, there's while is electronics for softness key. lot node fabs broadly So there's speaking, some in a higher

the we things PFA us membranes out cases, for again, for Nafion both like relieve factor some capacity limiting is sold actually, can and, expand how capacity some we're to get on where permits at and plants. our hydrogen of quickly in And

macro, global a sort more the on. there's kind push really really Performance which segment is tied is to this capacity, the And in our to subject to ability and pull QX. saw is materials which of So a where in APM focused advanced team unlock mainly results within year our of Solutions the you

we economically this add a a is is, and year, Advanced in APM Materials would couple right? the year Performance transition, is Materials as And Solutions of that other XX%. on the saw You APM, the points more at up said -- for X%. beginning of side the of Yes, only sensitive business. down I Advanced are

as think transition for overall kind the you overall as full that's reflected APM into to about think of about well that going year. So of guide have of the you're overlay year, kind as seasonality the

Roberts question comes John from next Credit Our from Suisse.

the about ex-U.S. U.S. in supply versus earlier tinted of a the is with maybe there's so through difference went the does the that the tinting inventory be that international? at stores because more U.S. channel structurally regional factory Tronox your just and TiOX, imply that does And U.S. On comment correction? paint while contains would chain bigger mix pigment

otherwise U.S. in a the Yes. earlier, John, a if be don't we that's they little QX for nicely. as cautious significant true. market, the than that's -- which said which, I What has in went do market, of that are just rebounded in this know more feel U.S. to being But time is year. be number than and the customers more at U.S. represented would a destocking I yes, example, of terms European we're through -- bit

been example, has in strong given MNC versus Europe for the Europe of of But TSS strength for us other we're So in represented some economy. that competitors. our on TiOX less

back I more actually strong be of little has with Europe how also degree, bit example. may has of versus for think and There come some bit U.S. to the do plastics, in little a exposure, a market caution to So coatings it

is this John, Sameer. Yes,

timing up right? you you I just -- think little recession our even earlier simpler bit last issue, if and ask it, in started here, I coming about QX Just we as -- think it's judgment just went because zoom into would lot year. a to the said, right? much back, in it's a Europe a

exposed U.S. Europe the on think out, as now, cautious construction of financing of the is So where we more coming impact the markets about whereas are we kind has more been side. becoming

timing channel product perspective broader it rather would or So I of a perspective. than from think more individual

the less pricing? go seeing are any stabilization price back then TiOX formulaic contracts Right. And and customers exit you secondly, to

said And I've contracts no we major in No. times, place. many remain major any exit our I'd our of have customer as had contracts. say

comes Andrews next Morgan question Vincent from Our from Stanley.

of to Vincent. in largely mean This we an you was rates? now China and earlier at that the is just weakened back that sell-out destocking question, you you EMEA and -- kind to that that here, saw TiOX least get a of the get volumes mentioned on kind increase for Does from the guess to into where place your TiOX situation to kind back Will took over. going expect Tang I guys sell-in sequentially, volume might goal of if macro

I'm the to expectation gradual continue year see a I QX, but I we'll question, understand in going recovery not think double-digit sequentially the volumes growth. QX volume our and is sure to fully TiOX throughout from

And the as as build right, also, lower talk Yes. about going the volume percent about commitment. you of these customers, inventory our were where the kind think as past, they are to incentive is TVS to in

So to see volume think of through them from to you're going that representative demand. be going I pull their the more is

Got it.

going TSS, expectations to as there content months then just thought maybe this Okay. guess maybe respect between headwind a EVs mix the I that ago. year incremental would to TSS look differences to what for any EV few That's than at had an we And helpful. auto side? the Are with and production builds ICE? lower And you be on be and

tied forecast I seen to our Actually good for auto -- auto year the so Clearly, blocks. again, IHS. starting think strong of really we've out build builds is the

April, builds we auto strong. into that sense even Some relatively remain as go

here that nice today, a actually think be sitting tailwind. I could So

size comparison, Candidly, at is charge actually an than larger combustion the EV as engine. to -- internal ICE on EV you look

using detail actually in mix grows we the at something as for larger increased engine EV that's car, than the winter. And to EVs look pump as business. overall so positive of is car EV you're essentially for internal the our heat probably heat more in charge in we'll But size And over share a it somewhat penetration where a an cabin an the combustion time. is

next comes Our from Bank America. Matthew question DeYoe of from

Matt. for on [Indiscernible] is This Yes.

peers. and So margins quite they firstly, TiOX, came little bit your I about where think still want up they're to some lower XX%, ask in than a of I your

lower any just trying more Or integration? understand, a changes is for at Chemours? vertical it So I'm are that margins point, there are other this of leading structural to to difference

before Technologies you closing that And focused are you Titanium the also mentioned on segment.

provide you you're on color more can taking So little some a bit here? the what initiatives of

Yes.

the on current that the the the cost volume not we'll we're as business call, I EBITDA our the doing have happy with work both year side. focus a keen exit So on earlier with margins. as And the clearly, of at margins that cost through gradual year the a expectation in we we're side and XX% based said on go recovery,

Denise Dignam did record is of the of the good being TiOX into track President, in really TT role has he a business, who's side or focused -- cost on APM. President, the which of come

how Denise think and really I we business on so the are focused forward. that team And drive

tell our full for The to with we're the on in capacity market the the cash other focus on with more the in would year thing be adjusting I line running a you business volume is clearly flow.

you're So have I'd tell at a circuit you, are if know also with look I say, always of, pigment, mix on when generation. how focus when comparable the margins you mining a cash don't you but running and

So number improving differences. focused a the And would the we to the a let's margins. at listen, focus on under a with are exit there margin through not target happy move XX% our the I is margin. team Denise's EBITDA level. as on year We're year leadership XX% the say, at of

a plants. to want TC Energy as agreement on green And about couple ask I a Perfect. a your little follow-up, hydrogen with bit of

participating selling detail If provide of kind to in investment the by regarding I hydrogen this well? as size, Chemours of your hydrogen size, just to a green to of can the will do more own all be And bit decarbonize understand, product? the used capacity. others you see guess, little hydrogen trying Or yourself you electrolyzes,

to of in a think and that huge about So We want all, very by decarbonizing has the our we're around in economies role role excited we hydrogen. first renewable world, lead example.

where West member of a TC partner. hydrogen This Energy So the another ARCHX we're in demonstration with Virginia, Energy application. working project is TC a as is Hub

membranes be the least we've Energy agreed we'll but at using facilities in commitment be in also Virginia, of hydrogen West in both for we'll facilities, at Virginia with be a of used with West plants. -- plants at TC partner Nafion decarbonize portion supply the our a these to to is generated some the those electrolyzers what And our at

we of noticed our on greenhouse two have our sustainable. Energy one, XX% doing our Department quarter, achieve we're gas more a on the Awards including -- initiatives, at path greenhouse would work reduction number in a this received XXXX the -- plants reduction make all through we plants. that of You absolute And to a are to by XX% by of

So project we're the with to this Hub just partner a the who Energy, the and very about we've excited submission DOE. ARCHX in MOU signed is TC

Our last Alexander Laurence Jefferies. question from comes from

mentioned potential much the you forward after pull do the in that step impact regulation would of have down. You on an ahead refrigerants your How volumes the think of change?

do in my have the my used have summer, to and end towards as using the people how much look, down So what year, -- again level this is sense indicated how have? of much this I is we've up that is, step how I we to I and sort summer demand on is year. and of of on up remaining likely think there we'll generate buying have prior quota based kind that some the of of activity wait see the see, much Laurence, calls, to

in throughout look may of impact second in volume quota, some marketplace. actual HFC in terms It drive could on on restricted at demand demand people the a year the price have also their based half. Clearly, robust on that of market seasonal a the versus use quota as that's demand more patterns in

impact of the see. step to business ahead obviously, have favorable next net-net, a But we'll down year. and the So it's wait on

EBITDA And a in you applications to before give shifts it with to can you market what in and how expect where is the GDP, get like sense mobility for stationary you see just full step-up is you and Great. penetration where both in -- now a much line then how of between trend growth? like do growing much Opteon

last in business that of to robust than Laurence, is close This team from we greater this year wouldn't that But Yes. business to both top single-digit I long-term away a and Day. they business as in basis. EBITDA XX%. mind, we the CAGR line in cash be we as line year making this our with very on expecting our is our overall in Clearly, sort growth move focused guide top Investor step where high would a time. full guide this are a call, margins and long-term that high with were we said on be, high-margin with conversion a a forward gave

qualifications, how Okay. Great. large share just CapEx share? of either in up of pick of a of And able to that investments then or lastly, cost fluoropolymer should much to XXXX Can that do up? in formulations, service market chemistries And terms related chunk and do customer give sense XXXX. to any you there's a new Chemours after you available need on pick be

living, in where hydrogen, believe data, Nafion Yes. today AI, but do capacity we about We on that are key our vehicles, expansion question. modern And are Laurence, economy we're high-speed also hydrogen. APM investments and focused big to renew fluoropolymers great obviously a of it's are essential our talking for electric wanting whether capabilities. membrane to are a they significant

plant West supplier PFA by we're We're our our in Washington only the the expanding in Teflon Virginia, which, in line also Works the way, PFA

U.S.

if chips, U.S. So of key activity. whole we're that a onshoring to there's

focused those as Teflon focused announced number on well very we've of opportunities. on the the investments in facility, hydrogen to both which PFA as we like to also in near-term today that are plants. the listen, But cite continue is be team Villers-Saint-Paul we would So debottlenecking in our a and France,

and saw quarter, our it's we're materials Performance subject Solutions bring quickly. the growth in in the more of really on was online whether really for demand our is XX% EV more focused which you business, up to Again, as the to on side, ability capacity

portfolio was recent Performance Solutions XX% In quarter, it's last this year. of Interestingly, XX%. the

in forward multiple of is segment of CAGR APM making And businesses I over more move specialized business, would sentiment APM higher the with lot we earnings the TSS I that really the look time. those our that time. reflect our at agree power a So the candidly, when and as doesn't

excited very and very we're on about focused is So where delivering. from we go the here, team

to just be matter to just demand end And novel Is significant I more curve? already you're you that may, keep I guess, the of opportunity formulations, markets? into a such in. more looking chemistries because you it trying in that Or -- is just growth if it expand up market have would with

where focused The the we applications. how Obviously, conflicts. chemistry provide from really channel through of adjacent on the in works way value right But real team thoughtful value downstream can in some the end think our from value understanding we're very all add in is sort Yes. the potential or we monomer back more to about of application. applications more there's

And in some themselves manifesting example, joint of these are, ventures. for

we they we of with the supply a have forward have in the where capacity. did have lot joint monomer all from chain, on a membrane chemistry but So membranes, FUMATECH fuel all cell Germany expertise venture in the we

on that. So we're working with them

innovation the think the it's Effectively, that's it's a innovation, some the business. going going apply. under strategy going materials to would growth business. APM market-led be you Denise Laurence, big only of add that drive unique he very but to And as as is you're about market-led out kind one is to about in in needs, growth had is The think the have of business laid that be our Sameer. we going when this market had we Yes. thing to I change properties

And from DeYoe we America. Matthew a question from Bank have follow-up of

time. questions last since of couple A some have we

for had EBITDA kind wondering, that performance, one outlook first the targeting the still the you worst-case of this XXXX? segment, just $XXX you million. year mean mentioned QX And scenario was case given $XXX at of current that in see the for as The it million a is TiOX I'm previously you're

stand talk should market the is had in the the the XXX-ish all This trough one. that, in the this business, Yes, I'll hey, you how changes Yes. is Sameer. number take going the dynamics that about. be given we we're had past to that, by we and

on what APM production up? provide of seeing your of about little are Can raw inflation in terms still color bit amount, you're the going and more higher talking And level Okay. a and inflation also raw in there, is Perfect. material both what categories, you the you're what second costs. materials one

add start going different is as materials. This business, to can you're raw to all side, Mark really I'll think Yes. business very the color. consume about it and inflation Overall, because they Sameer, right, depends

expect in moderate year. really So that But the inflation headwinds we go to year, well. as recovery we're the as we in out like and through is do I as laid going the comment should as the the well think I And that's help won't the how margin the we we as drive is, make reflected about TT margin to to through progress generalize the over script top.

So headwinds bit moderating chains as overall, a the are quite the have eased. supply

Yes.

is year, say really Now clearly, have prices I'd a rolled seeing environment low to of across improvement And rest taking the cost we our to team energy portfolio. already significantly. over some procurement we're inflation to the drive of the advantage as look or degree

I the make you this the pricing And of costs would Again, earnings the stayed comment line item of look at kind ahead last slides as is right? has look in the as well. Yes. as well, quarter, at

we the staying we side are ahead well make as any commercial super inflations. stay on to sure So focused of

like further Newman turn call back the over closing for no to I would questions. have to Mark remarks. We

interest to today. great So Thank very we is year. day great on your it's you. delivering thank taking our your to road questions throughout full follow-up another guide seeing Chemours you team And and the for today. for all to in reaffirm forward and The the you focused year, on remaining look the

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

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