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Sep 30, 2021

Albemarle Q3 2021 Earnings Report

Albemarle reported an 11% sales growth and increased guidance.

Key Takeaways

Albemarle Corporation announced its Q3 2021 results, featuring a net sales increase of 11% to $830.6 million. Despite supply chain challenges and increased raw material costs, the company delivered solid revenue and adjusted EBITDA growth. The company also increased its full-year 2021 guidance based on strong third-quarter performance.

Net sales increased by 11% to $830.6 million.

Net loss of ($392.8) million, or ($3.36) per diluted share, which includes a $4.29 per share charge for a recent arbitration decision.

Adjusted diluted EPS of $1.05, a decrease of 4%.

Adjusted EBITDA of $217.6 million, an increase of 1%.

Total Revenue
$831M
Previous year: $747M
+11.2%
EPS
$1.05
Previous year: $1.09
-3.7%
Adjusted EBITDA
$218M
Previous year: $216M
+0.7%
Gross Profit
$249M
Previous year: $254M
-1.9%
Cash and Equivalents
$595M
Previous year: $702M
-15.2%
Free Cash Flow
-$151M
Previous year: $51.4M
-393.9%
Total Assets
$10.8B
Previous year: $10.2B
+5.9%

Albemarle

Albemarle

Forward Guidance

Albemarle’s improved outlook for the full-year 2021 reflects a strong third quarter performance and assumes continued global economic recovery as well as a modest improvement in operating performance compared to the full-year 2020.

Positive Outlook

  • Full-year 2021 net sales guidance was revised higher which reflects higher volumes in its Lithium business and stronger pricing in its Bromine businesses.
  • Adjusted EBITDA guidance improved due to higher net sales
  • Adjusted EBITDA guidance improved due to lower corporate costs
  • Adjusted EBITDA guidance improved due to higher-than-expected Catalysts joint venture income.

Challenges Ahead

  • Capital expenditures were revised higher due to accelerated investments in growth
  • Capital expenditures were revised higher due to tight labor markets
  • Capital expenditures were revised higher due to COVID-related travel restrictions in Western Australia.