The Chemours Company (CC) 28 Mar 242023 Q4 Earnings call transcript

Good morning. My name is Sarah, and I will be your conference operator today. I would like to welcome everyone to The Chemours Company Fourth Quarter and Year-End 2023 Results Conference Call.

[Operator Instructions] I would like to remind everyone that this conference call is being recorded. I would now like to hand the conference call over to Brandon Ontjes, Vice President of FP&A and Investor Relations for Chemours.

conference. your begin may You

Interim Good morning, and today Company's Quarter and The Denise Matt Welcome XXXX Earnings to Chemours' Officer; Year-End Executive joined Chemours' Chemours Financial Conference Officer, Dignam, Abbott. Fourth Chief everybody. Chief Call. by I'm

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

non-GAAP call, performance. During that A the company's release adjustments the non-GAAP are of reconciliation the we are course to of we'll our terms financial to evaluating issued press in believe and measures useful investors included certain yesterday. refer

release, reminder, deck been section supplemental Denise CEO, to our As our have turn Relations that, XX-K of over the earnings Investor I website. With our to a posted our will press call and the Dignam. Denise?

joined today. us and you, you've I morning, good that Thank appreciate everyone.

work patience acknowledge and our I am growth this face the to sense count want that I focus know been forward. I we in myself, and values have and want weeks shareholders and have same potential values of with We've our I I for integrity. for a to our understanding. to introduce our we're urgency to lead and priorities. and time, unlock on confidence I we your the diligently all company, moving great Before today. share company they important energized own past I and of over going thank can to strong At working so. ahead to ethics, challenges. that get with these few people, the of do to profitability opportunities Chemours, though, a you

about talk we're deliver let's how on going them. So to

perspective First, in Jersey. CEO as Chambers on University, DuPont, the Chemours. our XX I operations, me you you expect of site some to of can at Fresh give let our what manufacturing of I years engineer, a do so in as Drexel shift work me out New first women joined design Works ago

successful the learned the I to a work Here, how operation, processes skilled had you underpin about well. was, hard firsthand and do that manufacturing how be people and it to

when safety there our We the I moved appreciation learned for in this on also wellbeing I experiences customer XXXX, excited I I much manufacturing. Chemours, global to hydrogen. our for American strategic pride our keys In of a I what's and record in growth making customer-facing the taught Chemours, how engrained you I Nafion marketing. to join for quickly and considered established saw growth what's and are relationships create the These manufacturing I responsibility pivoted directness, potential roles using job transparency, and our It's priority. as was sustained those the In not bold technology and on, hands integrity people it me well business an right These growth also our to hydrogen have employees. the learned customers were a was This success. for I sound real a out trusting started Fluoropolymers as in me relationships new important do and roots. the how company for learned sales are in the is time, aligned as leading track and and for right North part moves having on value. choices. customers joined of quick with that early language. When into I making that process Nafion. At like better, efficiency a with drove We to of one come for first. When delivering superior businesses. was for spin region how reputation led improving. results. being and and These I tangible too. Later, in driving a Krytox results, really simple of engines Chemours where doing at and good starts. based need

role be done on of both enhancing Technologies underway and transformation we Titanium President I took plan, well our raised headed XX% segment, on are costs right of to my and there's year segment. the launched are I Advanced performance tenure, Yes, the Materials margins I a of our the my ago, lead and we during Next, President but more to Performance hand direction. took efficiency. in went to doubled become work where in we our to down businesses, about on then operations, business. About by

Let's be we stand clear today. where about

materials. plain we to X act The dynamics going portfolio. developments, lowest have where spoken I are markets Solutions business, our with We with APM grow we to TSS difference opportunities must to and technology at advanced and Two, accordingly. One, Performance operate we through position. between markets each. be certain performance about them we have and mature operate in play the want mature TT and how great advanced cost APM in

deliver our let's focus we're on how going priorities. to Now on

effective for we of business. out out of our what transformation resource transformation through of will the all take like relentlessly productivity we First, plan. allocation cost to the our higher driving launched We businesses TT are while doing costs plan drive

integration Yin backward through without efficiencies on mining and We on process to our high-cost return to producing put employees pigment sight, ore a shifted TT We greater maximize laser to operations increasing We are resources results. investments, challenge asset. closed delivering this the our focus mining to embraced our manufacturing. the innovation deliver capital. have Our more Kuan in plants

approximately these the We in savings in You our even cost in impact $XX will of see headwinds. cost the of actions input million achieved face XXXX, results. in

the of in XXXX. We business at least track on of $XXX are take to another out cost million

expect not our me expected cost It cost is returning same emphasize, of at leading takeout What in in second a what APM. product this sustainable that Let a improvement you in cost example portfolio we productivity. is TT and carefully driving is good earnings. of position. our phase can optimizing are TT year-over-year to the efficiency is doing looking a out and in at We're time,

earlier, As positioned significant to second potential secular APM low growth and warming global the important value-creation is element formula our high-return growth in This Solutions will portfolio. TSS solutions. driven investing capture opportunity regulations uniquely that opportunities. and TSS advanced in cooling of is I is customer-driven market and by changing said refrigerants the favor Performance

to investment capture cooling, currently all of which the this opportunity, well clear is have at next-generation Christi, expansion as including Corpus as investment We plans underway. emerging and refrigerants in

fantastic on JV our we high-growth Also, APM, and XXXX is start. a a potential we Company growth joint hydrogen venture, THE cell fuel and applications. as launched This capacity applications Membranes electric for such the to F.C. off humidify may are mobility vehicles. projects membranes mobility to executing in For you to recall, address production, manufacture to accelerate semiconductors in

Chemours PwC Chemours was year, over Officer. of we the an CFO. I'll Enterprise leadership comprehensive to Chief Matt. let served Controller. in and He from in Now We internal he as call our Accounting was Chief where his Matt Matt later a tenure group now permanent me search CFO. our partner. started joined introduce Officer XXXX audit with June continue and audit Abbott, last Interim appreciate to In as Matt promoted our for turn Transformation his

introduction. the here for be you with this thank morning. I'm and Denise, pleased of you, you all Thank to

Over few and quarter fourth next year minutes, our XXXX discuss the results. I will full

yesterday, announced completed note that its respect our press release a review. procedures to issued me its let planned Audit has we in First, internal with separate that Committee

Form that information as as SEC that filed afternoon. available Additional the with the in yesterday is we XX-K well release in

Our is actions. on and future focus today, however, results

in on adjusted Turning portfolio, offset portfolio. Fourth diluted low-global of improved Performance $X.X TSS the double-digit North sales increased now driven economically partially This share. net demand sales by for net to growth fourth TT our settlement sales Adjusting XX%, due declined growth softness And was primarily a Solutions APM GAAP materials by charges, Opteon warming America. potential $X.XX for our results. $XX billion. of X%, loss million XXXX per following: segment our was driven X% our reflects titanium to dioxide refrigerants. million basis to increased litigation sales Consolidated segment segment increased demand sensitive quarter advanced outside in year-over-year or increased XX%, $XX million. quarter net by $XX after-tax income

line. and the ladies moment, gentlemen, with connection please, we've lost Sorry, speaker one

everybody to for the Apologies difficulty. technical

I just hand over going Just comments are to repeat and fully make back when my that the Denise. go from section to communicated. from I'm sure it

quarter XXXX Over the our results. will next I year discuss few fourth full minutes, and

our let completed in me that review. press a separate procedures that Audit announced internal First, note Committee to we issued its respect has its with release planned yesterday,

release as available filed Additional that information is well in the the yesterday. Form with as SEC in XX-K press

today the future is and results on call focus on Our actions.

quarter compared growth Advanced or by X% after-tax year Turning increased America. input segment increased the quarter. global and net refrigerants driven titanium in This XX% million TSS was XXXX $XXX,XXX primarily of by XX% for billion. to $XX warming demand adjusting economically to across segment businesses results. potential the by by demand from which of $XX sales $X.XX and prior $XX our to savings $XXX and our double-digit compared fourth segment income TSS, Adjusted net was quarter. Solutions $X.XX was our following: cost dioxide the Materials in net per improved to increased in share APM million, due in GAAP in quarter EBITDA quarter year Plan. litigation demand now sales in prior quarter. our diluted partially $XXX our driven to breakeven diluted portfolio. Fourth Performance increase net sensitive low offset Adjusted favorable Consolidated increased the $X.X year-over-year compares This year Opteon increased was million TT fourth Transformation primarily North portfolio, reflects X% per declined TT share, for growth settlement sales sales in softness million costs Adjusted the to outside loss lower prior million driven charges. income to the

Now consolidated our turning results. to annual

year. year-over-year offset This from prior by stronger Advanced was in $X the TSS. by full sales Materials and in decline segment's driven partially down year our in pricing lower APM For consolidated volumes TT portfolio, XX% volumes XXXX, and were net the billion,

net per Adjusting TT of $X.XX litigation charges. $XXX was GAAP million settlement $X.XX year, or in was from and was per APM. million Full XXXX down year million Full income $X.XX full $XXX or $XXX the year. prior $XXX EBITDA XXXX, net primarily to compared For in year share adjusted XX% for weaker diluted attributable after-tax adjusted to or billion, the million loss diluted share. diluted per results share $X

consolidated year impact full charge a excluded $XX inventory includes Yin Our to want associated quarter closure. clear of facility million closure. for be adjusted third non-cash write-offs the million results, adjusted $XX our charge this Kuan EBITDA In I about with reflects. what to our inventory Yin related our a for figure Kuan EBITDA write-offs non-cash facility

As Kuan the you of sold. filing with Form Yin comment in associated cost filings agree closure write-offs the we SEC, goods seen letter of our inventory all as with have the appropriate noncash it our to XX-Q, third would may classify be quarter facility that subsequent to

XXXX. we consolidated adjusted the for this in impact such, included have XX, ended $XX year now EBITDA million December As

the year, sold. Kuan cost were reflected full with facility noncash in associated goods million, the $XX of which inventory For are Yin of write-offs all closure

margin tailwind versus $XX or increases Prices driven market-exposed by turning for to our XXX XX% the increases the XX% year-over-year growth X% savings million. resulting increase These all adjusted a sales Now driven was primarily demand in by net slight year on business basis was This price $XXX in starting with adjusted from and the market. million, quarter, XX% year-over-year. points volumes. TT. for the for except for impact cost in Prices were X% partially higher prior Currency a our quarter. were stronger channels, a down EBITDA TT contractual by plan. was year-over-year. for EBITDA fourth volume TT segments was our which TT offset increased quarter, to and the in up quarter transformation North X% Fourth regions, overall American improvement volume In declined

our to segment. now Moving TSS

products result actions quarter. other For reached growth. XX by delivered a broad-based pricing price in sales for EBITDA and from year-over-year. in TSS exception million. XX% to adjusted was $XXX increase Currency prior and portfolios, refrigerant year This X% volumes Foam, our increase quarter up year-over-year in XX% in million, and of HFCs to with across the legacy the TSS quarter, the a higher portfolio. legacy percentage across was driven fourth margin tailwind a impact net by driven Propellents X% $XXX products in XX%, $XX million also EBITDA provided points Adjusted Fourth growth

Now turning to APM.

APM quarter for volume, X% X% fourth the prior versus and result price to XXXX, sales XX% were by $XXX was XX% net a For partially a in offset currency year. million, lower attributable tailwind. This lower increase

net Softness was driven Advanced sales sales Performance increase was more our net XX% which economically Materials by for a end an portfolio. partially markets. in covers in XX% decline sensitive portfolio, our offset by This Solutions

The lower prior lower million, quarter. maintenance for which quarter, one our extended APM volume Adjusted $XX was year XX%, improvements manufacturing online. million basis back an year-over-year. now was points to the is during the EBITDA adjusted compared attributable given to margin in and For and down quarter cost EBITDA declines the lower at $XX absorption for sites, were outage fixed of XXX

our now cash prior our on increase million sheet Moving prior the of to totaled flow quarter. million In increase in investments in up flows, year was to year we by -- the prior generated million cash in capital $XX APM. quarter $XXX $XXX fourth CapEx CapEx growth the operating an Performance statements. GAAP XXXX, balance increased quarter from compared and $XXX million portfolio in Solutions Fourth driven quarter. quarter in This

partially year-over-year the driven compared For by change primarily year. were to originally project $XXX $XX million million GAAP million in than earnings offset in million lower full million outflows working year and was flows for to settlements, $XXX The compared operating of projected year. timing. prior by CapEx prior litigation was PFAS XXXX, cash capital. was $XXX $XXX the lower due to This

an had balance billion. XX, Chemours and December cash XXXX, of cash of equivalents As unrestricted $X.X

PFAS-related equivalents in announced cash million of claims settlement XXXX. and Chemours $XXX June in maintained restricted restricted drinking in the also comprehensive primarily We of to cash escrow held related water

As we our already balance reflected cash is this and settlement restricted sheet on the restricted have -- balance of is previously disclosed, cash share Chemours' million $XXX cash and equivalents as in XXXX. Disbursement XX, is settlement restricted cash in settlement and equivalents final pending restricted escrow the from the the the of December agreement. the becoming of accordance cash of terms for with approval

with settlement the million. State settled Ohio related of November our the MOU share the PFAS-related also of with on $XX XX We claims under totaling

We be paid amount expect this to this year.

$X.X outstanding at undrawn restricted $XXX of credit billion This year-end. the total was cash available restricted million excludes cash Our liquidity letters but includes under revolving our facility, and equivalents. of it net credit,

to profile. Turning capital our

$X.X As to additional of amending capital our This net our at a loans, basis and XX-month our euro-denominated approximately and net by by billion. debt adjusted EBITDA equivalents billion XXXX, $X.X aggregate was X.Xx we the extending year. a December flexibility term U.S. end $X.X providing on million and $XXX dollar XX, the unrestricted of increased of In our XXXX, borrowings structure. cash ratio Debt consolidated was billion. in leverage cash of trailing of resulted gross

to In in $XX shareholders $XXX terms of million the of repurchases. shareholders returned share XXXX, dividends return of we million in $XXX million capital and form of to

XXXX. expect As in forward, quarter of we cash to equivalents with half decrease occurring we first the look the in by of cash the majority million unrestricted of decrease the our and first approximately XXXX, balance $XXX currently

quarter business. internal the XXXX associated settlement Restricted the when Also, million, during the to and review out are higher equivalents quarter. approximately due to actions As costs process for in net by of XXXX primarily cash decrease first PFAS management cash the we the working with expected corporate the disbursement. will we unwind $XX invest capital restricted expenses pay the be and

in press prior revisions period Form material details financial you misstatements saw XX, any to material release material over internal to December and XX-K, in XX-K. yesterday weaknesses our result X evaluation and more in identified and They you reporting of or our find in the certain our footnotes As XXXX. controls disclosures. some did not our weaknesses financial immaterial in result of did of financial These as can our statements, statements

the the time are actions We process but already implementing controls. implement, already to forward are in to material weaknesses. we enhancements our These take address will to internal moving of

We to but those fully control address are to over only strengthen will forward. Denise, you. not environment weaknesses, that our actions committed back also going

Thank Matt, you, for am incredible at important your this Chemours. so my partnership have moment lucky I to for by side. you

speaking months, and coming about outlook. be ways Now our our let's guidance plans forecasting new we'll of turn the our to for business. In

basis, formulating go-forward more next are For parts quarter earnings providing guidance lot our share of There first on we'll moving plan a to for now, a on our we the call. are quarter. and are guidance on we our only first

into get let's So it.

XX% a expected due driven about We expect in production regional sequential by approximately quarter a of in discrete of XX%. the decline an XXXX challenge, net resolve sequential for first to TT sales weaker some decline demand adjusted in resulting TT EBITDA and seasonality now

seeing the we up levels. order positive As first we from are in current our trends exit quarter, book,

in For TSS, adjusted related global This low products. input higher quarter transition sequential by the Christi source growth sales in be is both demand costs offset from a regulatory for and we solutions. the anticipate growth to net partially potential to non-Corpus first and anticipate Opteon about our EBITDA XXXX, is seasonality continued We materials. by TSS warming XX% for continued in growth and segment. expected driven This

stationary has to applications. slowed for the EPA's the Opteon transition However, sell-through X-year extended products date

quarter site of to sites. is fourth decline manufacturing production. we large previously sensitive first Again, quarter and of full of economically by extended back one this outage markets the driven now sales XXXX, tail For net the about softness a online our for back end in sequential are impact mentioned and APM, at projecting in XX%

first with XX% XXXX. XXXX be adjusted the quarter nearing quarter the APM of resolved, is been issues fourth manufacturing have EBITDA expect APM for down to sequentially. We flat APM would are Absent that the about relatively lows. cyclical now

the portfolio recovery sits where market by the X Advanced Materials overall to months. about the we value lagging see Given in business chain, X

portfolio is future. our growth its APM, Our Solutions I confident for Performance in and engine very am

However, path our temporary two seeing factors. driven near in by some we're growth in term, headwinds primary the

this including been but currently relative to do permit process PFA sold to diligently capacity and and with working with to to have so. We've a this require add the look working control is we're for emission world which the technology out the customers First, essential advance things, are we semiconductor been doing policy forward serving and implementing all parties major technology. right for around especially our a We state-of-the-art the the industry, priority U.S..

reason weakness than the the second is The development slower market. of for near-term expected hydrogen

the funding delaying which this focus. is remains projects. Hydrogen matter a anticipated market, anyone hydrogen as into we of global the As is growth acceleration and is that opportunity quickly knows, story a and government a as flowing decarbonization is energy following policy believe timing. Therefore, not

quarter the EBITDA down XXXX with consolidated For results. first sequentially quarter to sales expect to adjusted compared of consolidated down slightly be fourth the with net 'XX, XX% we flat

a So list of to I'm has finish short I'd things like already with do. begun. going to Change

have We how this of top the at fundamentally operate we changed organization.

lowering customers. embedding business and We in it This rather line than business level, resources businesses. means more and bottom are corporate closer our led means decision-making our at led. now to the to the corporate Closer costs and

do. reinforce the organization are I'm benefit At plans, earlier, cost time, our are reduction for that that customers we implementing the same with the can our mentioned are confident and of funding shareholders. to we values. high-return our working I is there and As we more projects we

are us only choose events Chemours. why Recent values people will make Our stronger.

meeting forward I looking you. to Finally, with am

please start open Sarah, line now. the let's So questions? for you right can

of McNulty question first line the Instructions] Your Markets. Capital comes John with [Operator BMO from

how envision role. at the new glad the getting to on it's I'm Congratulations not a sure it, but have you wheel. hand steady

issues a So first means and just maybe and accounting from question for it the is on management Chemours the that perspective. what

the CFO senior and CEO of years couple change a had leave as of number leaders even the well. last So before departure over Chemours new

lot the talent at left. a has So of firm

firm measures that to is can its so So going out to strengthen taking going that be to of the get speak Chemours most the you're you be forward? industry-leading guess to the platforms going and I of taking can the kind bench

understand question. I your

of our of moving And I performance. all, a just first so of state parts, indicative QX has to and lot the that not it's want going-forward

to that keep perspective So the I in conversation. we just want as continue us

there's your different think about I to question. think ways

the is leads attrition the we the where confidence that There's base problem customer leadership. to the we to of First, with succession a of at with team. because leaders, quickly, the leaders planning had in deep across many of an leadership The stability that it operations. I There these you that have roles confidence there's and our have do company. are history the it's at of in we and employees But key And in been stability want But not in day levels company, been There able businesses. the with all understand the executive with out day experience long -- business organization. in have business level done assure businesses. many bring backfill a our do to that actually the are. in we I want internally, We've we've confidence resulted the organization. organization at and

a do poll organization last this, want the our gone thinking organization. there's it's run with transformation month, we TT the but anecdote, -- But quick I up a to executive know team. we see confidence the to for stability survey of you our in And as in hard have Just has on diversity over work. great

is the And to CFO searches President so TT plan for role. part comprehensive do and of for position the our

-- don't changes. turbulence, believe that that going change maybe benefits think add those to these are well. good. of believe I is underway we want out now. I And I I do just So but be just And things come right as -- I'll there's do

question, dig just Got we answer. can with dig into the it. helpful into businesses. of the And Maybe as just very second core a one follow-up

about talk let's segment. the So TT

you it the it's now. of done. seasonally like like restructuring your have that And looks looks normally industry up actually guys bearing destocking fruit. a So own some is picks lot TiOX

guess to for start weak in So the first I a terms surprised bit quarter. see the I'm of EBITDA

to about us how large business but so help the here? part you was plant are about a that's the as TiOX it be XXXX? thinking sounds we think like maybe And should pushes you can dynamics about of thinking It there it, So issue, that? throughout higher a how

Absolutely.

So the last as you year I've spent in know, TT business. the

have We customer relationships. great

We have strong assets, are the this and highly people, of fundamentals capable business solid.

is this we're know decisions. at cyclical a strategic low. In things business, and low, choices. a cycle when And QX, we You some cyclical can made you little We get the noisy. at a get need some

of One activity we QX piece that a from is that those This of to was to choices was decided planned change. This of QX. a we up something pull equipment. maintenance

We to we years. wanted when were equipment the And to we market have year out faster seeing and X every back. be a ready change wearing came

think inventory. had though So stronger. were the finished a was was in -- pull right we seeing first for coming business. some into And we Even the I product made We're the the quarter second low the quarter. that decision we it It choice. to choice

a now, is just in velocity right sure increase talked transformation going order improving. to Our in make into -- TT. about I want volume QX. looking cost the And we're And at I XX%

gives we've go want there, we want. us the are work We done it enormous volume after with And the to well when flexibility that positioned. we

Barclays. Leithead with Mike Your line question of next from the comes

on to then and just you function the remind for just forward. volume orders is the X you going than hydrogen electrolyzer being around of you to right APM, you role slower for new metric grade us? now? look the can on first, guess, And how is questions working Maybe currently us with of right some hydrogen And congrats that on largely thought. comments again, business' business forward I external Is of Denise, of made. a sort big second, weakness the sort that the

with working as you to well. forward look I

the is So electrolyzers. a looking at as color you're that It's isn't the full maybe comments, there bit of on. related well And supply spot there. chain APM, hydrogen to

say how the follow is. funding and So that of we going will we that I say we the want accordingly. Relative sold of have size business a when growth, happens, double-digit expect big are size to I to year. the to are business, really fully big the the the is don't what out But for orders how

And circling TT. one maybe just more back to

as thinking TT think the you're of at or focused cost go-to-market volatility sort see about everything of value some past forward. XX you largely months there on Chemours given it you stabilization be strategy? change going to or the relooking as the of to is one needs XX Do transformation Just your to Or any today?

not itself I it's is It's the to talk, branding to going strategy. pricing a the something a the and said to I'm part and language. feel it's of like just core say strategy my of that is I really in in to is TVS, continue. strategy. because It that I'd think we're like it's that work. But going really -- don't our strategy. We really simple good speak contract I it that about not confusing

work none. supply our on second reliability We also have to -- continue and to is quality we're our

another as our the cost of then lowest to the want key to -- need do. to the do as are ready stay And part ready TT Our transformation that, is the as weekend, need earlier, important commercial said a we be also to do We well. to we to we cost. to critically have lowest strategy. And be relationships what I to strategy want

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

of mean comments some on you TSS. some I to delays. about ask wanted made the EPA I

publicized I it's well pretty the think about been some refrigerant inventory chain. in

playing XX% sequentially, the your year-on-year. the first sales moving on pieces? XXXX And with down curious out quarter, you all specifically how I up, So starting just see but guess, you're are

So to between industry price develops how that how over year. the this and again, about trying volume plays and think

not correct with it I first, not want delayed robust as year. just It's you're maybe Yes. It's transition transition been. decline it's date Opteon say, to mean -- the that with being But the this year-over-year. or I wasn't a for have happening. I QX, it would say that quarter -- as sell-through is just

it, of is predicting year-on-year look and is piece you we're IHS that's other builds, X% auto that a if The seeing. decline on though, what

correct. market turn So what what the a will a demand. And have that's you're depending OEM of an that's on is extra positive to a impact we mean hot excess really happens, I there's the happening on if phenomenon inventory that spring, get certainly relative quarter. HFC we're inventories seeing

are you not this about give If going guidance guess for I'll growth year, our is I -- confidence expectations think in the unchanged long-term what business. say I'm to Huge for full TSS.

this been, investing for also investing but and as we Corpus we're our next-generation a We as our immersion in we're -- growth as refrigeration adding to in cooling. well R&D XX% especially, year expansion Christi, we're are have

growth growth good really for continued TSS. prospects So for prospects

I roughly you about guess is stronger I half. little second tricky your versus guidance, I maybe a XX% to it is ask first I guide much I typically, half bit are margins similar a can quarter, there's guess. at without look your if But margins, quarter. and guess is what your at first guess, fourth

you where guess of margin margins half a would I for now those the higher reflective think other second if margin a the don't phasing? of over some think there's to any this to those course way this way what has Or maybe expect should and moving today. about parts normal year business a consider lower normal about up in of XQ? -- I know items So we costs this discrete year and is

non-Corpus So are XX% meantime, -- for online want growth start to about to will in Opteon, we're expectations reemphasize, mean In increasing source have out the we we which capacity way product. that think is I come this investing of in I and we're just capacity, XXXX. One unchanged. longer-term to our

And margin. comes lower of bit a a so it -- a at lower

low facility state-of-the-art for Corpus Our proprietary cost. absolutely technology and is Christi

Corpus So any time we're not using the material. Christi

have hit margin little of We through bit a a on our JV.

The see year way other more business. this is because investing think investing about to we're that R&D in we the in -- potential the are we

question Sachs. next the Goldman Your Fischer from with Duffy line of comes

is talked leverage guide flow the about million last talked You and being about being X.Xx and in quarter $XXX your cash below year's EBITDA. now negative

a of have And down other of debt goal creeping how this? year? once up side So get the that on do you number high paying you this see leverage some would you

Duffy, this is Matt.

target know, you the leverage try medium a as right, around think, target term. as typically Xx net we I to over

that as expect described, basis, subject cash usage You're XXX this year. a we right. On could year the cash the flows do in Certainly, first half around [ of to the of move I ]. near-term year a through the

So cash at it midpoint the of half way second X of through we other we the will north But be coming the of the typically, year. seasonality, the year. see go as

versus then I'm your at year versus for you've contract last you change split -- already. this And Can titanium on sales Does then dioxide. peer have much? And what's reported guys year? sure that portal that expectation numbers looked

Are Your Or share? keep you between delta to losing you peers meaningfully market theirs. the structurally what's pricing? than volumes you and Do different look volume. to them think on

a I low. cyclical TT point first, where we want put Maybe the about just when at cycle, a that where in are is to on think ended Matt we in

market in recovery, TT. the with capability As that there's rebounds generation a huge business cash

I'm to I to Going commercial we the don't into say our versus and What are to have decisions in strategy get is we're peers, that what peers going performing made. what and we're I predicting. predicting super really confidence how want

in we reasons we for going first said, As for the decisions strategic made I be for the ready were year really so longer-term rebound. quarter are that the that to

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

there, guys macro people your some on there, you holding new Maybe portfolio, I into right? right? sit you look it micro at A from our are maybe multiple. the as strategically side holding a I you And sitting as micro. of Congratulations On past regime? I'll a take the macro a sits, how just and aren't cyclical maybe segment will strategically, question, things, differently of think a multiple, clearly, getting role. right? a back the sort mean back about mean, there get of sit then part the And and the portfolio thinking

There's it. priorities. two want strategic be new simple From just standpoint, I a to about really

we is have reduce to First cost.

to have We cost get out.

on and That's in in cost at the a opportunities overall going one. in two, company. growth We're to we're we're We structure our TT. in at have our APM, are these working phase well major we the attractive corporate next Number way number looking on invest level.

And on to going say they're if So a priorities. We're don't say going the we're that's really business led. know a but we're going to you'd priority I there's I also that's two would execute. difference, be how to behave.

on things, side if enough. may Fair I micro of the TT. And ask around question a

You being was up pricing competitors flat. QX to XX% and revenues your guided being sequentially to being about down right? larger XX%, volumes One XX% talking of

guys about something terms bit you you Or weakening the the on, question since gave and on was you that of maybe sort competitor part are that seeing corporate also of your the first are $XX of and uptick market after. that your guidance the part gave? is, you're warrants the things. in that market that thereon later of losing headwinds guidance side share parcel guidance, large seeing So corporate with And that, is million strengthens a

answer more internal the the first That in one. the is cost investigation $XX million just the Maybe I'll estimate straightforward for quarter.

think So cost. it. onetime The that's how I about

what don't As how thinking we that decisions will set on things. want for mentioned volume our competitors year. around you projecting. we're you I'll I up in to about us I the quarter comment are -- the tell first just And made again,

want the we the is be plan we to to cost have transformation to Our that where so play. be lowest to opportunity producer, -- play want we

level into you're around earlier, percent into the strategy we're the the said contracts, we going our cycle. customers. the in targeting I cycle with as And especially reason we the whether flexibility we contract of channels, a for you So at play keeping -- choose have of in say, second are channels, cycle, or channels quarter when -- commercial noisy. the there you of said, flex of seeing order look upside may get of some because the distribution downside And to we're if to it's that bump of our XX%. about and still our bottom be our for And want able a the are as volumes you the

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

about look Denise. savings for for cost Adam new again Arun. Congratulations out the This a $XXX at TT is we on thinking million can back called you I'm the for those you wondering role might If of year? if 'XX. around benefits might be cadence the guys able to kind I and through for how color of give that was rest the moment, some of look on any

year. you that Yes, the can think about is ratable the just way through

of are I order And maybe maybe curve. not full thinking thoughts timing you're of see potentially And billion how level? you further quarter EBITDA guidance are that giving this Do know couple in at thinking next about I of second the time. recovery, that But what you guys mid-cycle positive. that? you your as feasible about looking timing years? the to of that to called And know out returning really rates $X.X out are thinking year of getting around back

now Yes restocking. the the at is when hard exactly happen. way the predict looking supply of very We're chain. It's that to It's it to know going is we're hard predict to restocking we when. recovery

the interest dependent in demand, be TT indicators the consumer world about to -- think to about -- consumer That's buying. going of around that U.S.. interest is One happen the one can particular, rate of key is be business in going rate and the on very -- around you might changes,

And key ramp-up. indicator so that's would going to for a say, be, I

question next JPMorgan. Jeff from with Zekauskas the of Your comes line

overall chloride-based being chloride-based see think it going competitor you Or markets? stay to you that by new China? in Lomon TiOX the how Asian do that's industry Do a hundred size? a has affected capacity. TiOX few added thousand Or in the will tons of

China It's see the of exports true. We in the -- increasing. are the numbers, exports

things is is customers I very, and of a very them out, weakness market. is value quality. to long-term confidence key that service stability the the domestic be customers reliability, That to to that trust able relative to still One you're in, of the reliably proposition think high the And of going note day gives day pause, of supply. with

need that producer. plan able to other that the continuing really have the to product lowest-cost titanium dioxide that consider cost compete market The you aspect scenarios. such TT to is a And lines part as you of being mature is lower to in be -- transformation all in to drive

first very follow-up, that your guide my for understand guide the in are XX% for second going -- of in TiOX I the terms? sequentially quarter is to so XX% then Is up your And meaning rough quarter? your the of then that and roughly, down volumes sequentially just meaning be the your

Yes.

volume. I Specifically, about was talking

XX%. of second So volume increased first quarter to the quarter order on

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

One, detail us as the the from? it out, could it's chemical lead distraction if on organization. do in focused I can help taking years, on out, might the than then I ultimately coming line case, wanted unfortunate secondly, of the on can performance understand costs top whether to companies But of the collateral otherwise and the incremental consequences just just overall that of lots more not And maybe focus or been million and ways. the of $XXX little two buckets run to to able watched that, less organization of over now, they're have a getting one you costs within I've you much get that's cost ask it. growth is sometimes organization the as Denise, sort where

in cost really this segment, are ball? the you to the So the eye keeps particular, aggressive on move managing organization TT sure its make how within

might you obvious bucket. the about Kuan transformation. that First was what was buckets adding the was not to facility high-cost little shutdown of part the a the of and talk far all really something -- When business. of it value all, other for the it's as the as because question. at get think are Yin the it really second the it one To plan, a was not buckets bit and your big about One

so have we little to which go there's organization out we really So drives an looked productivity a in at where was and that, organization. people. and -- -- about we do there our you resources. when we beyond redesign. But And the huge confidence efficiency, is did intent need do actually have strategic leaning what it's And of

So one on in was big that area focused we mining.

the we Actually, We're those do we you mines. where We it's back yields? want really those be technology. How more. lower over do should is to we're getting by cost? of added the cost. TT to just still and that out you volume energy We're XXXX not have bought from we more very get So out over working reduce better the our focused you really done to we -- some added to more now, things increased And brought the strategy. mining on into it have we XX%. And technology cost of And getting -- getting these do these mines crisp. scientists. How it's it's leadership we kind roots, mines. things we've and engineers, people. and what really are ultimately mines, I were be of the And process are we've in think we're other of really They -- center

a the transformation very they change the program. We two to have be So be team every success organization. capacity. to it's strategic they're the to have burning has weeks, led the And the would performing very, management us me, comprehensive This how to because This of folks surveys out capability? to to to whole critically the it energy we really -- a and was people well. that TT they successful surveys they're lot send it The why not Do just plan. brings the quick has important if feeling. be has tell furniture. be Do throughout bottom run of frontline are it have

are So stronger. to that super where confident going we only I us am in and this is make

follow-up, in the American inflect North dynamic continue helpful. that same up does you I any North in the the on would that as So second market talked America, quarter? down fourth quarter? quarter but regions. dynamic And into in first be And a details volume Will the remarks, believe being in the in prepared other TiOX about

seeing the I all quarter would off improvement North second but say the into the in in going has America regions. started first we're market slow quarter,

end the have Call. Results joining XXXX fourth of We reached for question-and-answer Thank the session. you year-end Chemours and our quarter Conference

You lines. may disconnect your now