Albemarle Reports Third Quarter 2024 Results
Third-Quarter
2024 and Recent Highlights
(Unless otherwise stated, all percentage changes represent year-over-year comparisons)
- Net sales of
$1.4 billion , with volumes in Energy Storage and Specialties up 16% and 4%, respectively - Net loss of
($1.1) billion , or ($9.45 ) per diluted share attributable to common shareholders, which included pre-tax charges of$861 million primarily related to previously announced capital project asset write-offs - Adjusted diluted loss per share attributable to common shareholders of (
$1.55 ) - Adjusted EBITDA of
$211 million ; Specialties adjusted EBITDA up 22% year-over-year and Ketjen adjusted EBITDA up 134% year-over-year - Cash from operations of
$241 million , representing >100% operating cash flow conversion(a), driven by favorable working capital management - Maintaining full-year 2024 outlook considerations due to productivity and cost improvements, higher volumes, and the performance of long-term contracts
- Progressed comprehensive review of cost and operating structure; additional details include:
- Implementing new operating structure to maintain long-term competitiveness, streamlining organization to an integrated functional model
- Driving additional cost and productivity improvements of
$300 million to$400 million expected per year encompassing broad-based actions that include workforce reductions and manufacturing improvements - Reducing global workforce by an expected 6-7%, representing approximately 15% of non-manufacturing workforce
- Decreasing FY 2025 capital expenditures by approximately 50% versus FY 2024 to an anticipated range of
$800 million to$900 million
(a) |
Defined as Operating Cash Flow divided by Adj. EBITDA |
"Our steadfast focus on execution allowed us to deliver solid third-quarter results and maintain our full-year 2024 corporate outlook considerations as cost improvements, higher volumes, and the performance of our long-term contracts offset lower market pricing," said
Masters continued, "Through our strategic review of Albemarle's cost and operating structure, we have identified significant opportunities to reduce cost, improve productivity and decrease capital spending while ensuring we efficiently serve customers and our end-markets. These actions are designed to increase Albemarle's financial flexibility, strengthen our core capabilities and position the company to maintain its leadership position long-term."
Additional Actions in Connection with Comprehensive Review of Cost and Operating Structure
During the third quarter, Albemarle progressed the previously announced comprehensive review of its cost and operating structure, building on the actions announced with the company's second quarter 2024 earnings release. Effective
The annual run-rate cost savings of actions in connection with the comprehensive review is expected to be in the range of
These savings are in addition to cost savings of over
Full-year 2025 capital expenditures are expected to be in the range of
Total Corporate Outlook Considerations
The company is maintaining its prior full-year 2024 outlook considerations, which are based on observed lithium market price scenarios. The previously published
All other corporate outlook considerations are unchanged.
|
Total Corporate FY 2024E Including Energy Storage Scenarios |
||
Observed market price case(a) |
Recent pricing |
Q4 2023 average |
H2 2023 average |
Average lithium market price ($/kg LCE)(a) |
|
|
|
Net sales |
|
|
|
Adjusted EBITDA(b)(c) |
|
|
|
Weighted-average common shares outstanding (diluted)(d) |
~118 million |
~118 million |
135 - 139 million |
(a) |
Price represents blend of relevant |
(b) |
The company does not provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP, as the company is unable to estimate significant non-recurring or unusual items without unreasonable effort. See "Additional Information regarding Non-GAAP Measures" for more information. |
(c) |
Presented under updated adjusted EBITDA definition as of 2024. FY23 adjusted EBITDA under updated definition would be |
(d) |
Each quarter, Albemarle will report the more dilutive of either: 1) adding the underlying shares in the mandatory to the share count or 2) reducing Albemarle's net income to common shareholders by the mandatory dividend. The 20-day volume-weighted average common share price will be used in determining the underlying shares to be added to the share count. |
Third Quarter 2024 Results
In millions, except per share amounts |
Q3 2024 |
|
Q3 2023 |
|
$ Change |
|
% Change |
Net sales |
$ 1,354.7 |
|
$ 2,310.6 |
|
$ (955.9) |
|
(41.4) % |
Net (loss) income attributable to |
$ (1,069.0) |
|
$ 302.5 |
|
$ (1,371.5) |
|
(453.4) % |
Adjusted EBITDA(a)(b) |
$ 211.5 |
|
$ 653.0 |
|
$ (441.5) |
|
(67.6) % |
Diluted (loss) earnings per share attributable to common shareholders |
$ (9.45) |
|
$ 2.57 |
|
$ (12.02) |
|
(467.7) % |
Non-recurring and other unusual items(a) |
7.90 |
|
0.17 |
|
|
|
|
Adjusted diluted (loss) earnings per share attributable to common shareholders(a)(c) |
$ (1.55) |
|
$ 2.74 |
|
$ (4.29) |
|
(156.6) % |
|
|
(a) |
See Non-GAAP Reconciliations for further details. |
(b) |
For comparability, 2023 figures presented under adjusted EBITDA definition that the company adopted beginning in 2024. |
(c) |
Totals may not add due to rounding. |
Net sales for the third quarter of 2024 were
The effective income tax rate for the third quarter of 2024 was (9.4)% compared to 5.4% in the same period of 2023. On an adjusted basis, the effective income tax rates were (12.9)% and 3.1% for the third quarters of 2024 and 2023, respectively, with the decrease primarily due to changes in geographic income mix and the impact of valuation allowances for losses in consolidated entities in
Energy Storage Results
In millions |
Q3 2024 |
|
Q3 2023 |
|
$ Change |
|
% Change |
|
$ 767.3 |
|
$ 1,697.2 |
|
$ (929.9) |
|
(54.8) % |
Adjusted EBITDA |
$ 142.9 |
|
$ 604.9 |
|
$ (462.1) |
|
(76.4) % |
Energy Storage net sales for the third quarter of 2024 were
Specialties Results
In millions |
Q3 2024 |
|
Q3 2023 |
|
$ Change |
|
% Change |
|
$ 342.4 |
|
$ 352.7 |
|
$ (10.3) |
|
(2.9) % |
Adjusted EBITDA |
$ 56.3 |
|
$ 46.3 |
|
$ 10.0 |
|
21.5 % |
Specialties net sales for the third quarter of 2024 were
Ketjen Results
In millions |
Q3 2024 |
|
Q3 2023 |
|
$ Change |
|
% Change |
|
$ 245.0 |
|
$ 260.7 |
|
$ (15.7) |
|
(6.0) % |
Adjusted EBITDA |
$ 35.5 |
|
$ 15.2 |
|
$ 20.3 |
|
134.0 % |
Ketjen net sales for the third quarter of 2024 were
Cash Flow and Capital Deployment
Year-to-date cash from operations of
Year-to-date capital expenditures of
Balance Sheet and Liquidity
As of
Earnings Call
Date: |
|
Time: |
|
Dial-in ( |
1-800-590-8290 |
Dial-in (International): |
1-240-690-8800 |
Conference ID: |
ALBQ3 |
The company's earnings presentation and supporting material are available on Albemarle's website at https://investors.albemarle.com.
About Albemarle
Albemarle regularly posts information to www.albemarle.com, including notification of events, news, financial performance, investor presentations and webcasts, non-GAAP reconciliations,
Forward-Looking Statements
This press release contains statements concerning our expectations, anticipations and beliefs regarding the future, which constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on assumptions that we have made as of the date hereof and are subject to known and unknown risks and uncertainties, often contain words such as "anticipate," "believe," "estimate," "expect," "guidance," "intend," "may," "outlook," "scenario," "should," "would," and "will". Forward-looking statements may include statements regarding: our 2024 company and segment outlooks, including expected market pricing of lithium and spodumene and other underlying assumptions and outlook considerations; expected capital expenditure amounts and the corresponding impact on cash flow; market pricing of lithium carbonate equivalent and spodumene; plans and expectations regarding other projects and activities, cost reductions and accounting charges, and all other information relating to matters that are not historical facts. Factors that could cause Albemarle's actual results to differ materially from the outlook expressed or implied in any forward-looking statement include: changes in economic and business conditions; financial and operating performance of customers; timing and magnitude of customer orders; fluctuations in lithium market prices; production volume shortfalls; increased competition; changes in product demand; availability and cost of raw materials and energy; technological change and development; fluctuations in foreign currencies; changes in laws and government regulation; regulatory actions, proceedings, claims or litigation; cyber-security breaches, terrorist attacks, industrial accidents or natural disasters; political unrest; changes in inflation or interest rates; volatility in the debt and equity markets; acquisition and divestiture transactions; timing and success of projects; performance of Albemarle's partners in joint ventures and other projects; changes in credit ratings; and the other factors detailed from time to time in the reports Albemarle files with the
Consolidated Statements of (Loss) Income (In Thousands Except Per Share Amounts) (Unaudited) |
|||||||
|
|||||||
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
|
|
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Net sales |
|
|
|
|
|
|
|
Cost of goods sold |
1,458,726 |
|
2,255,662 |
|
4,221,487 |
|
5,371,077 |
Gross (loss) profit |
(104,034) |
|
54,934 |
|
(75,674) |
|
1,889,961 |
Selling, general and administrative expenses |
154,253 |
|
172,109 |
|
482,052 |
|
716,046 |
Restructuring charges and asset write-offs |
828,146 |
|
1,757 |
|
1,156,522 |
|
9,196 |
Research and development expenses |
22,397 |
|
21,082 |
|
66,699 |
|
62,972 |
Operating (loss) profit |
(1,108,830) |
|
(140,014) |
|
(1,780,947) |
|
1,101,747 |
Interest and financing expenses |
(47,760) |
|
(29,332) |
|
(120,916) |
|
(81,686) |
Other (expenses) income, net |
(22,256) |
|
11,182 |
|
61,311 |
|
147,628 |
(Loss) income before income taxes and equity in net income of unconsolidated investments |
(1,178,846) |
|
(158,164) |
|
(1,840,552) |
|
1,167,689 |
Income tax expense (benefit) |
110,853 |
|
(8,551) |
|
76,472 |
|
311,399 |
(Loss) income before equity in net income of unconsolidated investments |
(1,289,699) |
|
(149,613) |
|
(1,917,024) |
|
856,290 |
Equity in net income of unconsolidated investments (net of tax) |
229,058 |
|
470,306 |
|
696,436 |
|
1,417,545 |
Net (loss) income |
(1,060,641) |
|
320,693 |
|
(1,220,588) |
|
2,273,835 |
Net income attributable to noncontrolling interests |
(8,351) |
|
(18,160) |
|
(34,154) |
|
(82,679) |
Net (loss) income attributable to |
(1,068,992) |
|
302,533 |
|
(1,254,742) |
|
2,191,156 |
Mandatory convertible preferred stock dividends |
(41,687) |
|
— |
|
(94,959) |
|
— |
Net (loss) income attributable to |
$ (1,110,679) |
|
$ 302,533 |
|
$ (1,349,701) |
|
|
Basic (loss) earnings per share attributable to common shareholders |
$ (9.45) |
|
$ 2.58 |
|
$ (11.49) |
|
$ 18.68 |
Diluted (loss) earnings per share attributable to common shareholders |
$ (9.45) |
|
$ 2.57 |
|
$ (11.49) |
|
$ 18.60 |
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding – basic |
117,535 |
|
117,349 |
|
117,505 |
|
117,304 |
Weighted-average common shares outstanding – diluted |
117,535 |
|
117,783 |
|
117,505 |
|
117,797 |
Condensed Consolidated Balance Sheets (In Thousands) (Unaudited) |
|||
|
|||
|
|
|
|
|
2024 |
|
2023 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ 1,664,519 |
|
$ 889,900 |
Trade accounts receivable |
749,792 |
|
1,213,160 |
Other accounts receivable |
268,696 |
|
509,097 |
Inventories |
1,657,688 |
|
2,161,287 |
Other current assets |
328,915 |
|
443,475 |
Total current assets |
4,669,610 |
|
5,216,919 |
Property, plant and equipment |
12,376,369 |
|
12,233,757 |
Less accumulated depreciation and amortization |
3,117,917 |
|
2,738,553 |
Net property, plant and equipment |
9,258,452 |
|
9,495,204 |
Investments |
1,179,598 |
|
1,369,855 |
Other assets |
463,690 |
|
297,087 |
|
1,637,758 |
|
1,629,729 |
Other intangibles, net of amortization |
246,078 |
|
261,858 |
Total assets |
$ 17,455,186 |
|
$ 18,270,652 |
LIABILITIES AND EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable to third parties |
$ 1,070,717 |
|
$ 1,537,859 |
Accounts payable to related parties |
152,093 |
|
550,186 |
Accrued expenses |
513,122 |
|
544,835 |
Current portion of long-term debt |
3,012 |
|
625,761 |
Dividends payable |
61,262 |
|
46,666 |
Income taxes payable |
110,514 |
|
255,155 |
Total current liabilities |
1,910,720 |
|
3,560,462 |
Long-term debt |
3,565,990 |
|
3,541,002 |
Postretirement benefits |
25,959 |
|
26,247 |
Pension benefits |
143,666 |
|
150,312 |
Other noncurrent liabilities |
791,823 |
|
769,100 |
Deferred income taxes |
526,367 |
|
558,430 |
Commitments and contingencies |
|
|
|
Equity: |
|
|
|
|
|
|
|
Common stock |
1,176 |
|
1,174 |
Mandatory convertible preferred stock |
2,235,105 |
|
— |
Additional paid-in capital |
2,978,387 |
|
2,952,517 |
Accumulated other comprehensive loss |
(469,770) |
|
(528,526) |
Retained earnings |
5,495,697 |
|
6,987,015 |
|
10,240,595 |
|
9,412,180 |
Noncontrolling interests |
250,066 |
|
252,919 |
Total equity |
10,490,661 |
|
9,665,099 |
Total liabilities and equity |
$ 17,455,186 |
|
$ 18,270,652 |
Selected Consolidated Cash Flow Data (In Thousands) (Unaudited) |
|||
|
|||
|
Nine Months Ended
|
||
|
2024 |
|
2023 |
Cash and cash equivalents at beginning of year |
$ 889,900 |
|
$ 1,499,142 |
Cash flows from operating activities: |
|
|
|
Net (loss) income |
(1,220,588) |
|
2,273,835 |
Adjustments to reconcile net (loss) income to cash flows from operating activities: |
|
|
|
Depreciation and amortization |
425,532 |
|
285,801 |
Non-cash restructuring and asset write-offs |
1,075,888 |
|
— |
Stock-based compensation and other |
24,443 |
|
29,465 |
Equity in net income of unconsolidated investments (net of tax) |
(696,436) |
|
(1,417,545) |
Dividends received from unconsolidated investments and nonmarketable securities |
348,358 |
|
1,939,225 |
Pension and postretirement expense |
3,806 |
|
5,925 |
Pension and postretirement contributions |
(13,339) |
|
(12,243) |
Realized loss on investments in marketable securities |
33,746 |
|
— |
Unrealized loss (gain) on investments in marketable securities |
26,982 |
|
(36,740) |
Deferred income taxes |
(112,777) |
|
(182,764) |
Working capital changes |
823,194 |
|
(1,332,042) |
Other, net |
(17,415) |
|
(129,377) |
Net cash provided by operating activities |
701,394 |
|
1,423,540 |
Cash flows from investing activities: |
|
|
|
Acquisitions, net of cash acquired |
— |
|
(43,207) |
Capital expenditures |
(1,330,062) |
|
(1,465,193) |
Sales (purchases) of marketable securities, net |
83,651 |
|
(205,952) |
Investments in equity investments and nonmarketable securities |
(217) |
|
(1,279) |
Net cash used in investing activities |
(1,246,628) |
|
(1,715,631) |
Cash flows from financing activities: |
|
|
|
Proceeds from issuance of mandatory convertible preferred stock |
2,236,750 |
|
— |
Repayments of long-term debt and credit agreements |
(84,403) |
|
— |
Proceeds from borrowings of long-term debt and credit agreements |
84,403 |
|
300,000 |
Other debt repayments, net |
(629,434) |
|
172,791 |
Dividends paid to common shareholders |
(140,929) |
|
(140,251) |
Dividends paid to mandatory convertible preferred shareholders |
(81,059) |
|
— |
Dividends paid to noncontrolling interests |
(37,176) |
|
(79,393) |
Proceeds from exercise of stock options |
114 |
|
117 |
Withholding taxes paid on stock-based compensation award distributions |
(10,892) |
|
(26,166) |
Other |
(2,758) |
|
(191) |
Net cash provided by financing activities |
1,334,616 |
|
226,907 |
Net effect of foreign exchange on cash and cash equivalents |
(14,763) |
|
167,710 |
Increase in cash and cash equivalents |
774,619 |
|
102,526 |
Cash and cash equivalents at end of period |
$ 1,664,519 |
|
$ 1,601,668 |
Consolidated Summary of Segment Results (In Thousands) (Unaudited) |
|||||||
|
|||||||
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
|
|
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Net sales: |
|
|
|
|
|
|
|
Energy Storage |
$ 767,291 |
|
|
|
|
|
|
Specialties |
342,376 |
|
352,722 |
|
993,041 |
|
1,142,802 |
Ketjen |
245,025 |
|
260,711 |
|
754,473 |
|
714,326 |
Total net sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA: |
|
|
|
|
|
|
|
Energy Storage |
$ 142,887 |
|
$ 604,948 |
|
$ 623,862 |
|
|
Specialties |
56,273 |
|
46,307 |
|
155,629 |
|
268,665 |
Ketjen |
35,473 |
|
15,159 |
|
95,288 |
|
72,584 |
Total segment adjusted EBITDA |
234,633 |
|
666,414 |
|
874,779 |
|
3,678,969 |
Corporate |
(23,135) |
|
(13,442) |
|
14,315 |
|
1,949 |
Total adjusted EBITDA |
$ 211,498 |
|
$ 652,972 |
|
$ 889,094 |
|
|
See accompanying non-GAAP reconciliations below.
Additional Information regarding Non-GAAP Measures
It should be noted that adjusted net (loss) income attributable to
A description of other non-GAAP financial measures that Albemarle uses to evaluate its operations and financial performance, and reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found on the following pages of this press release, which is also is available on Albemarle's website at https://investors.albemarle.com. The company does not provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP, as the company is unable to estimate significant non-recurring or unusual items without unreasonable effort. The amounts and timing of these items are uncertain and could be material to the company's results calculated in accordance with GAAP.
ALBEMARLE CORPORATION AND SUBSIDIARIES
Non-GAAP Reconciliations
(Unaudited)
See below for a reconciliation of adjusted net (loss) income attributable to
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
In thousands, except percentages and per share amounts |
$ |
|
% of |
|
$ |
|
% of |
|
$ |
|
% of |
|
$ |
|
% of |
Net (loss) income attributable to Albemarle Corporation |
( |
|
|
|
|
|
|
|
( |
|
|
|
$ 2,191,156 |
|
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating pension and OPEB items (net of tax) |
(344) |
|
|
|
386 |
|
|
|
(1,031) |
|
|
|
1,141 |
|
|
Non-recurring and other unusual items (net of tax) |
928,771 |
|
|
|
19,674 |
|
|
|
1,203,313 |
|
|
|
210,094 |
|
|
Adjusted net (loss) income attributable to
|
(140,565) |
|
|
|
322,593 |
|
|
|
(52,460) |
|
|
|
2,402,391 |
|
|
Mandatory convertible preferred stock dividends |
(41,687) |
|
|
|
— |
|
|
|
(94,959) |
|
|
|
— |
|
|
Adjusted net (loss) income attributable to
|
( |
|
|
|
|
|
|
|
( |
|
|
|
$ 2,402,391 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted (loss) earnings per share attributable to common shareholders |
$ (1.55) |
|
|
|
$ 2.74 |
|
|
|
$ (1.25) |
|
|
|
$ 20.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted weighted-average common shares outstanding – diluted |
117,535 |
|
|
|
117,783 |
|
|
|
117,505 |
|
|
|
117,797 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income attributable to Albemarle Corporation |
( |
|
(78.9) % |
|
|
|
13.1 % |
|
( |
|
(30.3) % |
|
$ 2,191,156 |
|
30.2 % |
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and financing expenses |
47,760 |
|
3.5 % |
|
29,332 |
|
1.3 % |
|
120,916 |
|
2.9 % |
|
81,686 |
|
1.1 % |
Income tax expense (benefit) |
110,853 |
|
8.2 % |
|
(8,551) |
|
(0.4) % |
|
76,472 |
|
1.8 % |
|
311,399 |
|
4.3 % |
Depreciation and amortization |
163,502 |
|
12.1 % |
|
105,445 |
|
4.6 % |
|
425,532 |
|
10.3 % |
|
285,801 |
|
3.9 % |
EBITDA |
(746,877) |
|
(55.1) % |
|
428,759 |
|
18.6 % |
|
(631,822) |
|
(15.2) % |
|
2,870,042 |
|
39.5 % |
Proportionate share of tax expense |
99,523 |
|
7.3 % |
|
199,685 |
|
8.6 % |
|
292,992 |
|
7.1 % |
|
599,646 |
|
8.3 % |
Non-operating pension and OPEB items |
(331) |
|
— % |
|
620 |
|
— % |
|
(993) |
|
— % |
|
1,833 |
|
— % |
Non-recurring and other unusual items |
859,183 |
|
63.4 % |
|
23,908 |
|
1.0 % |
|
1,228,917 |
|
29.6 % |
|
209,397 |
|
2.9 % |
Adjusted EBITDA |
|
|
15.6 % |
|
|
|
28.3 % |
|
|
|
21.4 % |
|
$ 3,680,918 |
|
50.7 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ 1,354,692 |
|
|
|
$ 2,310,596 |
|
|
|
$ 4,145,813 |
|
|
|
$ 7,261,038 |
|
|
Non-operating pension and OPEB items, consisting of mark-to-market actuarial gains/losses, settlements/curtailments, interest cost and expected return on assets, are not allocated to Albemarle's operating segments and are included in the Corporate category. In addition, the company believes that these components of pension cost are mainly driven by market performance, and the company manages these separately from the operational performance of the company's businesses. In accordance with GAAP, these non-operating pension and OPEB items are included in Other income, net. Non-operating pension and OPEB items were as follows (in thousands):
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
|
|
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Interest cost |
$ 8,523 |
|
$ 9,054 |
|
$ 25,529 |
|
$ 27,091 |
Expected return on assets |
(8,854) |
|
(8,434) |
|
(26,522) |
|
(25,258) |
Total |
$ (331) |
|
$ 620 |
|
$ (993) |
|
$ 1,833 |
In addition to the non-operating pension and OPEB items disclosed above, the company has identified certain other items and excluded them from Albemarle's adjusted net income calculation for the periods presented. A listing of these items, as well as a detailed description of each follows below (per diluted share):
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
|
|
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Restructuring charges and asset write-offs(1) |
$ 7.91 |
|
$ 0.01 |
|
$ 9.99 |
|
$ 0.06 |
Acquisition and integration related costs(2) |
— |
|
0.07 |
|
0.03 |
|
0.14 |
Loss (gain) in fair value of public equity securities(3) |
0.03 |
|
0.17 |
|
0.50 |
|
(0.21) |
Legal accrual(4) |
— |
|
— |
|
— |
|
1.82 |
Other(5) |
(0.04) |
|
(0.09) |
|
(0.23) |
|
(0.03) |
Tax related items(6) |
— |
|
0.01 |
|
(0.05) |
|
— |
Total non-recurring and other unusual items |
$ 7.90 |
|
$ 0.17 |
|
$ 10.24 |
|
$ 1.78 |
(1) |
The Company took several actions during the nine months ended |
|
|
|
|
(2) |
Costs related to the acquisition, integration and divestitures for various significant projects, recorded in Selling, general and administrative expenses for the three and nine months ended |
|
|
|
|
(3) |
Losses of |
|
|
|
|
(4) |
Accrual of |
|
|
|
|
(5) |
Other adjustments for the three months ended |
|
|
• |
Selling, general and administrative expenses - |
|
• |
Other (expenses) income, net - |
|
After income taxes, these net gains totaled |
|
|
|
|
|
Other adjustments for the three months ended |
|
|
• |
Selling, general and administrative expenses - |
|
• |
Other (expenses) income, net - |
|
After income taxes, these net gains totaled |
|
|
|
|
|
Other adjustments for the nine months ended |
|
|
• |
Cost of goods sold - |
|
• |
Selling, general and administrative expenses - |
|
• |
Other (expenses) income, net - |
|
After income taxes, these net gains totaled |
|
|
|
|
|
Other adjustments for the nine months ended |
|
|
• |
Selling, general and administrative expenses - |
|
• |
Other (expenses) income, net - |
|
After income taxes, these net gains totaled |
|
|
|
|
(6) |
Included in Income tax expense for the three and nine months ended |
|
|
|
|
|
Included in Income tax expense for the three and nine months ended |
See below for a reconciliation of the adjusted effective income tax rate, the non-GAAP financial measure, to the effective income tax rate, the most directly comparable financial measure calculated and reported in accordance with GAAP (in thousands, except percentages).
|
(Loss) Income |
|
Income tax expense |
|
Effective income tax |
Three months ended |
|
|
|
|
|
As reported |
$ (1,178,846) |
|
$ 110,853 |
|
(9.4) % |
Non-recurring, other unusual and non-operating pension and OPEB items |
858,852 |
|
(69,575) |
|
|
As adjusted |
$ (319,994) |
|
$ 41,278 |
|
(12.9) % |
|
|
|
|
|
|
Three months ended |
|
|
|
|
|
As reported |
$ (158,164) |
|
$ (8,551) |
|
5.4 % |
Non-recurring, other unusual and non-operating pension and OPEB items |
24,528 |
|
4,468 |
|
|
As adjusted |
$ (133,636) |
|
$ (4,083) |
|
3.1 % |
|
|
|
|
|
|
Nine months ended |
|
|
|
|
|
As reported |
$ (1,840,552) |
|
$ 76,472 |
|
(4.2) % |
Non-recurring, other unusual and non-operating pension and OPEB items |
1,227,924 |
|
25,642 |
|
|
As adjusted |
$ (612,628) |
|
$ 102,114 |
|
(16.7) % |
|
|
|
|
|
|
Nine months ended |
|
|
|
|
|
As reported |
$ 1,167,689 |
|
$ 311,399 |
|
26.7 % |
Non-recurring, other unusual and non-operating pension and OPEB items |
211,230 |
|
(5) |
|
|
As adjusted |
$ 1,378,919 |
|
$ 311,394 |
|
22.6 % |
As noted above, beginning in 2024, the company changed its definition of adjusted EBITDA for financial accounting purposes. The updated definition includes Albemarle's share of the pre-tax earnings of the Talison joint venture, whereas the prior definition included Albemarle's share of Talison earnings net of tax. See below for a reconciliation of adjusted EBITDA (on a consolidated basis), the non-GAAP financial measure, to Net income attributable to
Net income attributable to |
$ 1,573,476 |
Depreciation and amortization |
429,944 |
Interest and financing expenses |
116,072 |
Income tax expense |
430,277 |
Proportionate share of |
779,703 |
Gain on sale of business/interest in properties, net |
(71,190) |
Acquisition and integration related costs |
26,767 |
|
6,765 |
Non-operating pension and OPEB items |
(7,971) |
Mark-to-market gain on public equity securities |
44,732 |
Legal accrual |
218,510 |
Other |
(1,097) |
Total adjusted EBITDA |
$ 3,545,988 |
Media Contact:
Investor Relations Contact: +1 (980) 299-5700, invest@albemarle.com
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