United States. The Chemours Company announced its financial results for the first quarter of 2020 and its response to the COVID-19 pandemic.
"Our first quarter results were consistent with our expectations thanks, in part, to improved operating performance across our network. At the same time, we began to feel the early impact of COVID-19 in some areas of the business," said Chemours President and CEO Mark Vergnano.
"We are focused on the safety of our employees and the support of our customers. I am proud to report that our rapid implementation of health screening procedures and the acquisition of additional protective equipment have allowed us to operate our manufacturing facilities with minimal coronavirus-related disruption. In addition, we have enacted a broad set of cost-cutting initiatives that will help improve our financial flexibility and allow us to respond quickly to changing conditions in the near term."
Net sales for the first quarter of 2020 were $1.3 billion compared to $1.4 billion in the first quarter of the prior year. The results were mainly driven by higher volume in Titanium technologies, more than offset by lower volume in Fluoroproducts and lower global average prices across all segments.
First quarter net income was $100 million, or $0.61 per diluted share. Adjusted net income was $118 million, with adjusted EPS of $0.71, an increase of 8% and 13% respectively over the prior year. Adjusted EBITDA for the first quarter of 2020 was $257 million compared to $262 million in the first quarter of the prior year, as a result of lower F-Gas sales and share prices, partially offset by year-over-year cost reductions.
Fluoroproducts
In the first quarter of 2020, net sales of the Fluoroproducts segment were $600 million compared to $687 million a year earlier. Softer demand was primarily driven by the impact of COVID-19 in Asia Pacific and several end markets globally, resulting in lower volumes compared to the first quarter of last year.
The average price is down 4 percent year-over-year. Segment adjusted EBITDA of US$140 million decreased by 12 percent compared to the prior-year quarter, negatively impacted by limited sales of F gas quotas due to illegal imports of HFC refrigerants into the EU. This was partially offset by improved efficiency of the acceleration of the Corpus Christi Opteon facility, lower costs due to improved operational execution, and cost reductions across the business. Margins improved sequentially from 19% in the fourth quarter of 2019 to 23% in the first quarter of 2020.
