Key Takeaways
- ALB posted an adjusted loss of $1.55 per share, more than the predicted 31 cents per share.
- ALB's stock price fell 21.4% the past year, while the rest of the diversified chemicals industry rose 9.9%.
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Albemarle Corporation ALB logged a loss of $9.45 per share in the third quarter of 2024. In the year-ago quarter, the company had reported earnings of $2.57 per share. Barring one-time items, adjusted loss for the reported quarter came in at $1.55 per share. It was wider than the Zacks Consensus Estimate of a loss of 31 cents. The bottom line was hurt by pre-tax charges of $861 million related to restructuring charges and asset write-offs.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Revenues fell roughly 41% year over year to $1,354.7 million in the quarter. It missed the Zacks Consensus Estimate of $1,385.8 million. The top line was hurt by lower prices in the Energy Storage segment, partly offset by the volume growth in Energy Storage and Specialties units. Lower lithium market pricing impacted the company's results in the quarter. This was partly masked by volume growth and cost and productivity benefits.
Albemarle Corporation Price, Consensus and EPS Surprise
Albemarle Corporation price-consensus-eps-surprise-chart | Albemarle Corporation Quote
ALB’s Segment Highlights
Sales from the Energy Storage unit fell around 55% year over year to $767 million. It missed the consensus estimate of $768.1 million. The decline in sales was attributed to reduced pricing. Sales volumes increased driven by the ramp of lithium projects, including the La Negra expansion in Chile and processing plants in Qinzhou and Meishan in China, and sales of chemical-grade spodumene.
The Specialties segment recorded sales of $342 million, down around 3% year over year. It was below the consensus estimate of $344 million. Lower pricing impacted sales, partly offset by increased volumes.
The Ketjen unit recorded revenues of $245 million in the reported quarter, down roughly 6% year over year. It was below the consensus estimate of $278.4 million. Higher prices aided sales, partly masked by lower volumes.
Albemarle’s Financial Position
Albemarle ended the quarter with cash and cash equivalents of roughly $1,664.5 million, down around 9% sequentially. Long-term debt was around $3,566 million, up around 1% from the prior quarter.
Cash from operations was $241 million in the third quarter and $701 million for the nine months ended Sept. 30, 2024.
ALB’s Outlook
Albemarle maintained its outlook considerations for full-year 2024 factoring in cost and productivity improvements, higher volumes and the performance of long-term contracts.
The company has lowered capital expenditures for full-year 2025 by roughly 50% compared with 2024 to a range of $800-$900 million.
During the third quarter, ALB made progress with the earlier announced comprehensive review of its cost and operating structure. It expects the annual run-rate cost savings related to the comprehensive review to be in the range of $300-$400 million driven by the elimination of redundancies, lower management layers, productivity benefits and optimized manufacturing costs. The projected savings are in addition to cost savings of more than $100 million announced and executed this year. ALB has announced a global workforce reduction, which is expected to impact 6-7% of total headcount.
ALB Stock’s Price Performance
Albemarle’s shares have lost 21.4% in the past year compared with the Zacks Chemicals Diversified industry’s 9.9% rise.
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ALB’s Zacks Rank & Other Chemicals Releases
ALB currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.
DuPont de Nemours, Inc. DD logged adjusted earnings of $1.18 per share in the third quarter, topping the Zacks Consensus Estimate of $1.04. DD raised its full-year 2024 projections for operating EBITDA and adjusted earnings per share.
The Chemours Company CC recorded adjusted earnings of 40 cents for the third quarter, topping the Zacks Consensus Estimate of 32 cents. CC expects consolidated net sales to decline in the mid to high-single digits sequentially in the fourth quarter. Consolidated adjusted EBITDA is forecast to be down in the high teens to low 20% range compared with third-quarter 2024 results.
PPG Industries, Inc. PPG logged third-quarter adjusted earnings per share of $2.13, missing the Zacks Consensus Estimate of $2.15. PPG anticipates flat organic sales and adjusted earnings per share at the bottom end of the $8.15 to $8.30 range for full-year 2024.
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