Chemours Co. has announced the temporary appointments of Denise Dignam as Interim Chief Executive Officer and Matt Abbott as Interim Chief Financial Officer. This follows the decision by the company’s Board to place President and CEO Mark Newman and other key executives on administrative leave pending the completion of an internal review.
This review pertains to the company's mechanisms for handling reports submitted to the Chemours Ethics Hotline, working capital management practices, various non-GAAP metrics included in Securities and Exchange Commission filings, and related disclosures.
The company has suggested that it might have notable weaknesses in its internal management of financial reporting as of the end of 2023 in connection with maintaining effective controls. Any such weaknesses and their remediation efforts would be reported in their Annual Report on Form 10-K.
Due to the need for additional time to review its financial reporting controls and to complete its end-of-year report, Chemours will delay its earnings release and associated conference call for the fourth quarter and full-year 2023 results. It will also postpone the filing of its Annual Report for the 2023 year.
As far as its 2023 financial results are concerned, Chemours anticipates a net loss ranging from $225 million to $235 million, compared to a net income of $578 million in the previous year. This projected loss includes $746 million of settlements incurred before taxation from litigation and $153 million from restructuring and other charges. However, a pre-tax gain of $106 million achieved from the sale of its Glycolic Acid business softened the blow. The company's net sales for the year are expected to be around $6.0 billion, which is less than the $6.8 billion recorded in the previous year.
