Wilmington, Delaware – Third-generation PU blowing agent manufacturer Chemours generated net sales of $1.3 bn in the first quarter 2020 down 5.16% on the same period last year. Adjusted EBITDA across the business fell by 1.9% to $257m in the quarter.
Coronavirus depresses demand for Chemours' fluorocarbons in Q1
'Our Q1 results were consistent with our expectations thanks, in part, to improved operating performance across our network. At the same time, we did begin to feel the early impact of coronavirus in some areas of the business,' said Chemours CEO Mark Vergnano.
In the company's fluoroproducts business, the effects of coronavirus in the Asia-Pacific region helped push volumes down in the first quarter. Consequently, net sales fell 12.7% between the first quarter of 2019 and the first quarter of 2020, to $600m. This compares with $687m in the equivalent period in 2019.
Adjusted EBITDA in the division fell by 11.9%, to $140m in the first quarter of 2020. This compares with $159m in the 2019 quarter.
The company said illegal imports of its materials into Europe are depressing prices for its refrigerants. However, it said that improved efficiency at its plant in Corpus Christi, Texas, lower costs and greater business efficiency helped to offset this.
Vergnano added: 'In light of the uncertainty created by this pandemic, we are withdrawing our full-year 2020 guidance. We have taken decisive action to reduce FY 2020 costs by reducing overhead, discretionary spend and capex.'