March 28 (Reuters) -

    Chemours CC.N shares fell as much as 15.8% on Thursday,

after the chemical company forecast downbeat first-quarter sales

and revised some past financial results following an internal

review into management misconduct.

        The review identified "material weaknesses" in its

internal control over financial reporting and resulted in

    revisions

     of its balance sheet as of Dec. 31, 2022, and its cash flow

statements for 2021 and 2022.

        In its twice-delayed results announcement, Chemours

forecast first-quarter net sales to be flat to down sequentially

and capital expenditures of about $100 million.

    It also forecast a 10% sequential decline in net sales for

the titanium technologies segment due to seasonally weak demand

for titanium, along with a drop in sales in its advanced

performance materials segment.

    "We continue to believe many of Chemours's core businesses

should see a recovery in 2024. However, with risk to the numbers

and the heightened risk tied to the abrupt management changes,

we expect Chemours to underperform the broader chemical sector,"

BMO analysts said.

    Earlier this year, the internal review showed manipulation

by some of its senior management to meet free cash flow targets

tied to their incentives, resulting in its top three executives,

including CEO Mark Newman, being placed on administrative leave.

        The company later named chemical industry veteran Denise

Dignam as CEO, a month after she took over the role on an

interim basis.

    "We suspect investors will be more focused on the risks

surrounding the potential for further involvement from the SEC

and the United States Attorney's Office," analysts at J.P.

Morgan said in a note.

        Going into the second quarter, however, Chemours expects

a 15% increase in volumes in its titanium technologies segment,

Dignam said on Thursday on a conference call.  

    The current average analyst rating on Chemours shares is

"hold", according to LSEG data.

(Reporting by Seher Dareen in Bengaluru; Editing by Vijay

Kishore and Devika Syamnath)

((Seher.Dareen@thomsonreuters.com; If in India call +91 74832

70128;))