Chemours Files Twice-Delayed Annual Report

Chemicals company Chemours finally filed its twice-delayed annual report yesterday, and the stock market was not impressed. Stocks slid nearly 11% after the filing, reports Seeking Alpha. The filing showed a smaller loss for Q4 2023 and noted that the company had found “material weaknesses” in its financial reporting.

Filing of the annual report was delayed when it came to light at the end of February that three top executives, including CEO Mark Newman, were involved in the manipulation of vendor payments and other financial activities to meet Chemours’ free cash flow targets. They stood to benefit in terms of incentives for meeting certain financial goals. Newman, Senior Vice President and CFO Jonathan Lock, and Camela Wise, vice president, controller, and principal accounting officer, were placed on administrative leave at the end of February.

Chemours announced this week that Denise Dignam, who was serving as interim CEO in Newman’s absence, has been named permanent president and CEO, effective immediately.

In presenting the annual report on March 27, Dignam commented that Chemours had navigated a challenging year in 2023, which included “prolonged destocking in certain key end markets . . . headwinds [that] impacted our overall financial performance.”

The company reported an 11% year-over-year decline in $6.0 billion net sales in 2023. Fourth quarter net sales of $1.4 billion were up 2% year-over-year. Full details are available on the Chemours website.