Zacks Investment Research | May 31, 2018 04:23AM ET
The Chemours Company (NYSE:CC) inked a deal with Arkema for the distribution of XP40 (R-449A) in the European Union (EU), to meet rising demand for low global warming potential (GWP) refrigerants under the F-Gas Regulation.
The 2018 F-Gas regulation as well as phasedown reduction of 37% has created significant demand for low GWP alternatives to replace traditional products, such as R-404A/R-507A. Hence, leading supermarkets, retailers, contractors, distributors and end-users in the EU currently prefer XP40. It is known for delivering improved performance with a more sustainable environmental footprint and over 65% reduction in GWP versus existing products.
This move will help the company to make the product more accessible to customers. XP40 plays a key role in enabling the market to comply with the F-Gas Regulation.
Chemours has outperformed the industry it belongs to for more than a year. The company’s shares have gained 24.9%, compared with roughly 9.7% rise recorded by the industry.
Factoring in solid first-quarter results and visibility into the balance of 2018, Chemours expects that adjusted EBITDA for 2018 will be at the top end of its earlier announced range of $1.7-$1.85 billion, driven by sustained positive momentum across its businesses.
Chemours also expects to deliver further margin expansion throughout the balance of 2018. The company also anticipates to deliver more than $700 million free cash flow in 2018.
Chemours is gaining from healthy demand for Ti-Pure TiO2, sustained adoption of Opteon refrigerant and higher demand for fluoropolymers products. Higher adoption of Ti-Pure TiO2 products is driving results in the company’s Titanium Technologies division, as witnessed in the first quarter. Chemours should also gain from favorable pricing and demand in the Fluoroproducts segment in 2018.
Moreover, Chemours completed its acquisition of ICOR International in April 2018. The buyout boosts its refrigerant portfolio and expands its channel access across its markets.
Chemours Company (The) Price and Consensus
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.