Chemours cuts 2022 outlook on weak TiO2 demand

HOUSTON (ICIS)–Chemours has cut its full-year 2022 earnings guidance because of a continued decline in the demand outlook for titanium dioxide (TiO2) throughout Q3, most notably in Europe and Asia.

“Lower demand, coupled with continued high input costs, have impacted our projected results for the full year,” Mark Newman, CEO of the US-based producer, said in an update on Wednesday.

In response, Chemours will be extending a scheduled outage on one of its production lines, in addition to other cost actions, he said without disclosing details.

Chemours’ adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for 2022 is now expected at between $1,400-$1,450m – at midpoint about 7% below the midpoint of the prior guidance range.

However, earnings are expected to come in at about 9% above their 2021 level.

Chemours added that the reduction in the 2022 guidance was driven entirely by its Titanium Technologies segment.

In its two other segments – Thermal & Specialized Solutions, and Advanced Performance Materials – Chemours expects “to drive 2022 earnings growth even as we enter the seasonally weaker second half,” Newman said.

“Our revised outlook assumes that the economic factors we’ve mentioned will not worsen or accelerate,” he added.

Chemours is due to announce its Q3 results after market close on 25 October.

Meanwhile, other chemical producers – including Olin, Huntsman and Eastman – have also cut guidance, and Austrian fibres group Lenzing has suspended its earnings guidance for full year 2022, citing a dramatic worsening in market conditions in Q3.

Thumbnail shows white paint, which is made with TiO2. Image by Shutterstock.