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Chemours (NYSE:CC) stock on Wednesday slid nearly 11% in extended trading, after the chemical manufacturer finally filed its twice-delayed annual report which showed a smaller loss for Q4 2023 and said its internal review had found “material weaknesses” in its financial reporting.
Shares of CC were last down 10.6% to $25.80 after hours.
The review earlier this month revealed that three of the company’s top executives had manipulated some vendor payments and collections of receivables in Q4 in part to meet free cash flow targets that were tied to their incentives.
The company in late February had placed the executives – its former CEO, CFO and principal accounting officer – on administrative leave, following which the stock had experienced a record intraday plunge of more than 30%.
Chemours (CC) on Wednesday said that the internal review had also identified four material weaknesses in the company’s financial reporting that resulted in a revision to CC’s balance sheet as of December 31, 2022 and statement of cash flows for each of the years ended December 31, 2022 and 2021.
The review also led to “immaterial revisions” to CC’s March, June and September 2023 quarterly financial statements. Chemours (CC) added that the material weaknesses did not result in any misstatements of its financial statements or disclosures.
Chemours’ (CC) annual report showed that for Q4, the company reported a loss per share of 12 cents on revenue of $1.36B. Analysts had expected the chemical maker to lose 24 cents per share on revenue of $1.34B.
Net loss attributable to Chemours (CC) narrowed to $18M in Q4 from a loss of $97M a year ago. Meanwhile, revenue rose 1.7% Y/Y.
The company added that its internal review had determined that payments of up to about $100M were delayed until Q1 2024, primarily to certain vendors that were originally due to be paid in Q4 2023.
The review also found that collection of up to about $260M of receivables that were originally not due to be received until Q1 2024 were accelerated into Q4 2023.
Additionally, the review determined that similar actions, though to a lesser extent, were taken in Q4 2022.
