Chemours, a leading provider of performance chemicals, has revised its outlook for 2023 following a decline in its third-quarter results. The company now forecasts adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the range of $1.03 billion to $1.08 billion, compared to its previous outlook of $1.1 billion to $1.18 billion.
The adjusted free cash flow for the year is expected to exceed $225 million, factoring in approximately $400 million of capital expenditures. This is a reduction from the previous guidance of free cash flow surpassing $325 million, which included the same amount of capital expenditures.
The revision in guidance comes as Chemours experienced a decline in sales and a significant drop in net income during the third quarter.
Mark Newman, Chief Executive of Chemours, attributed these quarterly results to the weaker global macroeconomic environment. He highlighted that the impact was primarily felt in the company’s titanium technologies segment and advanced materials portfolio within the advanced performance materials segment.
Overall, Chemours is reallocating its forecasts for 2023 to reflect the challenges faced in the current economic climate.