Markets
CC

Shares of Chemours Decline Sharply on Lowered Guidance

CC Chart

Shares of sunk more than 18% today following the company's announcement that fourth-quarter sales will be lower than previously expected.

What: Shares of The Chemours Company sunk more than 18% today following the company's announcement that fourth-quarter sales will be lower than previously expected.

So What: Chemours, the recent spin-off from DuPont , announced that various market forces, including the strength of the U.S. dollar, would lead to lower-than-expected sales in the fourth quarter for two of its major products: titanium dioxide and fluoropolymers. The demand weakness for these products has led management at Chemours to cut global pricing for these products by 3%.

As you would expect, the reduction in price and demand is expected to have an impact on profits, but the company was much more vague on what these declines will mean for its earnings numbers. It only said that the coming quarter's EBITDA will be lower than the third quarter of 2015.

Now What: The market has not been kind to Chemours since its spin-off back in June; since that time, the company's shares have declined more than 77%. Then again, Chemours isn't exactly giving the market a whole lot of reasons to love this company. Revenue at the company, both as a separate company and when it was under DuPont, have declined for several years now, and these past two quarters, the company's earnings dipped into the red.

CC data by YCharts .

Even though Chemours CEO Mark Vergnano said that the company expects to cut its workforce and reduce operating expenses by $100 million for the second half of 2015, the declining revenue will most likely result in another loss for the fourth quarter.

As an investor, it may be best to sit on the sidelines for a while to see if the company can execute on its cost-cutting measures. Longer term, management thinks it could reduce expenses $350 million, by 2017, which should help to put it back on a track of profitability. If this happens, the company could be more appealing, but it's better to see execution rather than investing in the hope that it will happen.

The next billion-dollar iSecret

The world's biggest tech company forgot to show you something at its recent event, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .

The article Shares of Chemours Decline Sharply on Lowered Guidance originally appeared on Fool.com.

Tyler Crowe has no position in any stocks mentioned. You can follow him at Fool.com or on Twitter @TylerCroweFool .The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

CC

Other Topics

Stocks

Latest Markets Videos

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More