A bit more on the settlement between the whole MOV+ and Chemours/ DuPont. Chemours has posted losses in three of its four quarters since becoming a stand alone company. And while reporting a loss of $230 Million for the last quarter, is expecting profitability to begin. It says it made a profit of $7 Million for the past year overall. This on a revenue of $5.4 Billion is a bit sad for its size. It is still on the hook for its share of the $335 Million for the C8 settlement and has charged it all against the just completed fourth quarter.
Two points I found interesting is that with the settlement just announced:
1. It had already charged off the settlement in its fourth quarter report even if it is now just publicized? This smells to me of a lot of insider knowledge and the possibility of insider trading with the expectation of a huge stock increase valuation?
(In fact, Chemours' stock surged last Monday (13th), on news of the settlement, jumping 14 percent to nearly $33 per share, its highest price ever). But be assured, NO ONE working for Chemours or DuPont could have made a dime off of this action?
2. The other point is the alleged claim for indemnification by DuPont from Chemours?
In a recent article by The New Journal written by one Jeff Mordock it was written:
"DuPont must first pay any damages awarded to plaintiffs before it pursues indemnification from Chemours. The volume of lawsuits makes it difficult to know exactly when DuPont could seek reimbursement, but it is unlikely DuPont would wait 90 years for one large indemnification payment from Chemours. (This was based on at the time a projected 40 cases per year for 90 years to try all the cases in the Court System).
But Chemours, with about 1,100 employees in Delaware,may not pay, company spokeswoman Janet Smith said.
And DuPont must be careful not to overwhelm Chemours with liability payment demands so that it collapses under the strain. Chemours is in a precarious position. (And right here is a damn good reason for those who have them to start cashing out stock based on the increase in stock valuation noted above). It's total capitalization of $1.24 billion barely exceeds the estimated liability for pain and suffering of West Virginians and Ohioans harmed by C8 exposure. The company has lost money every quarter since separating from DuPont – $18 million and $29 million in the second and third quarters of 2015, respectively. Those loses nearly tripled in the fourth quarter, to $86 million.
The company's troubles have largely been tied to weak demand for its top products – titanium dioxide, Teflon, and sulfuric acid. All three of Chemours' product lines reported double-digit sales declines in the fourth quarter, and overall sales fell to $1.4 billion, a 12 percent decrease from the same quarter in 2014. For the year, Chemours' sales dropped 10 percent to $5.7 billion from $6.4 billion in 2014.
Chemours has responded to the quarterly losses with an aggressive plan to eliminate $350 million from its budget by the end of 2017. Cuts include the shuttering of its Edge Moor facility just outside Wilmington, along with a Niagara Falls, New York plant next year and the sale of a Beaumont, Texas plan to Dow for $140 million. In addition, the company has laid off 400 employees, about 5 percent of its workforce". (And for the Wood County folks?).
It seems that all through the past few Trials/ Court settlements (total of 5, I believe), Chemours has basically stated the costs are the problem of DuPont. Yet, as we know here, the EPA told Chemours to provide the Water Filtration Systems to Vienna. And at a stated price of $1.5 Million apiece came to $12 Million alone. This does not seem to include the never ending extra installations/ repairs/ co-pays made by Chemours that seem to exceed what the EPA ordered?
But it would in the short term appear to support some of the allegations of special deals between Chemours/ DuPont and the City of Vienna that have went on and may still be in motion?
And the people of Vienna and Boaz, are still on the hook to find out the hard way if they are or have recipients of diseases as noted that are caused by the C8? Somehow and I admit I am not very smart, but this thing is starting to smell? May I ask how much Stock or Stock Options Mr./ Mrs. Rapp may have since becoming Mayor/ Library Director?
In fact, how much stock do either of them have in Highmark/ Blue Shield under the same above Election/ appointment criteria? (Just did some looking around as the Market is open and found that Highmark is a privately held Company; very interesting? So for sure not possible stock/ stock options unless maybe an ESOP? (Posted 9:50 A.M. 02/ 21/2017). nuff said'.