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Chemours' Opteon XL41 Chosen by Carrier to Replace R-410A

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The Chemours Company (CC - Free Report) recently announced that its next-generation refrigerant R-454B, sold as Opteon XL41, has been chosen by Carrier as the primary lower Global Warming Potential (GWP) refrigerant. The refrigerant will replace the existing R-410A in ducted residential and light commercial packaged products sold by Carrier in North America, beginning 2023.

Opteon XL41 reduces CO2 emissions by 78% and offers improved energy efficiency compared to R-410A. It also helps in GWP reduction by more than 30% compared to R-32, another industry product to replace R-410A. Notably, Opteon XL41 was particularly designed to achieve maximum GWP reduction to satisfy long-term regulatory requirements.
 
Moreover, Opteon XL41 helps equipment manufacturers achieve lower GWP options that will meet future regulations. Chemours is committed to deliver world-class technology that reduces impact on global climate.

Per Chemours, Opteon XL41 is an ASHRAE Class A2L, hydrofluoro-olefin based refrigerant, selected by Carrier for its energy usage, safety and performance combine with longevity. This product offers customers as a low GWP replacement for R-410A.
 
Chemours offers low GWP solutions portfolio under the brand name of Opteon that delivers the optimal balance of performance, safety and environmental sustainability for commercial refrigeration, heat pumps, chillers and air conditioning.

Shares of Chemours have lost 43.5% in the past six months compared with the industry’s 23.4% decline.



Chemours expects all of its segments to deliver solid year-over-year top- and bottom-line growth. For Fluoroproducts, it expects results to improve on the back of continued adoption of Opteon refrigerants and strong demand for fluoropolymers products.

Moreover, the Chemical Solutions unit is projected to continue delivering improved performance on strong demand for mining solutions products.
Chemours expects the Titanium Technologies segment to witness year-over-year improvement despite expected volume loss due to customer destocking.

Chemours expects adjusted EBITDA within the lower half of the original guidance of $1.70-$1.85 billion. Free cash flow is expected to be roughly $650 million for 2018. Adjusted earnings per share are projected in the range of $5.10-$5.85.

The Chemours Company Price and Consensus

 

Zacks Rank & Stocks to Consider

Chemours currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the basic materials space are Verso Corporation , The Mosaic Company (MOS - Free Report) and Cameco Corporation (CCJ - Free Report) .

Verso has an expected earnings growth rate of 570% for the current year and a Zacks Rank #1 (Strong Buy). The company’s shares have rallied 38.2% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Mosaic has an expected earnings growth rate of 75.2% for the current year and a Zacks Rank #2 (Buy). The company’s shares have gained 12.8% in the past year.

Cameco has an expected earnings growth rate of 66.7% for the current year and a Zacks Rank #2. Its shares have gained 15.8% in a year’s time.

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