Albemarle Corporation · Q2 2021 earnings

Briefing

Albemarle reported strong Q2 2021 results driven by Lithium and Bromine products, and completed the sale of FCS.

Albemarle's Q2 2021 net sales increased by 1% to $773.9 million. Net income attributable to Albemarle Corporation was $424.6 million, or $3.62 per diluted share, including a gain on the sale of Fine Chemistry Services (FCS) business. Adjusted diluted EPS was $0.89, an increase of 4%. Adjusted EBITDA was $194.6 million, an increase of 5%.

• Net income of $424.6 million, or $3.62 per diluted share, including a gain on the sale of Fine Chemistry Services (FCS) business
• Adjusted diluted EPS of $0.89, an increase of 4%
• Net sales of $773.9 million, an increase of 1%; Net sales increased 5% excluding FCS
• Adjusted EBITDA of $194.6 million, an increase of 5%; Adjusted EBITDA increased 13% excluding FCS

Headline financials

Revenue & EPS history

The company continues to expect a modest improvement in operating performance compared to full year 2020, assuming continued global economic recovery. Full-year 2021 net sales guidance is improved compared to previous guidance primarily due to increased Lithium sales and improving Catalysts trends offset by reduced expectations for the Bromine business as a result of higher raw material costs and supply chain disruptions. Revised EBITDA reflects higher net sales offset by higher corporate costs, primarily related to incentive compensation expense and foreign exchange. Higher EPS and net cash from operations reflects lower interest expense and tax rates. Net cash from operations is also expected to benefit from timing of working capital changes. Capital expenditures are trending near the high-end of the range, due to tighter labor markets and COVID-related travel restrictions in Western Australia.