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Sep 30, 2022
Albemarle Q3 2022 Earnings Report
Albemarle's financial performance was marked by a significant increase in net sales and adjusted EBITDA, driven by strong demand for lithium-ion batteries.
Key Takeaways
Albemarle Corporation reported a net sales increase of 152% for the third quarter of 2022, reaching $2.1 billion. The company's adjusted EBITDA increased by 447% to $1.2 billion, and net income attributable to Albemarle Corporation was $897.2 million, or $7.61 per diluted share.
Net sales increased by 152% to $2.1 billion.
Net income was $897.2 million, or $7.61 per diluted share.
Adjusted EBITDA increased by 447% to $1.2 billion.
The company completed the acquisition of the Qinzhou lithium conversion plant in Guangxi China.
Albemarle
Albemarle
Forward Guidance
Full-year 2022 outlook remains strong, with net sales expected to be more than double and adjusted EBITDA expected to be nearly four times 2021 results.
Positive Outlook
- Net sales expected to be $7.1 - $7.4 billion
- Adjusted EBITDA expected to be $3.3 - $3.5 billion
- Adjusted EBITDA Margin 46% - 47%
- Adjusted Diluted EPS $19.75 - $21.75
- Net Cash from Operations $1.45 - $1.65 billion
Challenges Ahead
- Bromine-related weakness in key end markets, including consumer and industrial electronics and building and construction.
- Catalysts segment continues to experience natural gas pricing pressure related to the war in Ukraine and rising raw material costs.
- Potential downside of volume shortfalls (e.g., delays in commissioning and production ramp up at expansion sites and qualifications for tolling) for the remainder of the year
- Emerging softness in some end markets such as consumer and industrial electronics and building and construction for Bromine
- Catalysts segment outlook for the full-year 2022 adjusted EBITDA expected to be down 45-65% year over year