Enhancement reflects additional lithium
contract renegotiations
CHARLOTTE, N.C., May 23, 2022
/PRNewswire/ -- Albemarle Corporation (NYSE: ALB), a leader in the
global specialty chemicals industry, today announced improved
full-year 2022 guidance primarily due to the completion of
additional lithium contract renegotiations following the company's
Q1 2022 earnings release on May 4,
2022.
"Over the past 12 months, we've made significant progress in
renegotiating more variable-priced contracts with our lithium
customers. Implementation of these contracts is a key driver
of the expected year-over-year improvement in our financial
results," said Albemarle CEO Kent
Masters. "We now expect full-year 2022 adjusted EBITDA to be
up more than 160% from prior year based on favorable market
dynamics for our Lithium and Bromine businesses. Both
businesses are critical for transitioning to greener energy and
advancing electrification and digitalization."
Full-year 2022 corporate financial results reflect additional
index-referenced, variable-price contracts for battery grade
lithium sales. Higher net cash from operations guidance
incorporates higher earnings partially offset by increased working
capital. Outlook for the Bromine and Catalysts businesses
remains unchanged.
|
|
Previously
Revised
FY 2022
Guidance
|
Further
Revised
FY 2022
Guidance
|
Net sales
|
|
$5.2 - $5.6
billion
|
$5.8 - $6.2
billion
|
Adjusted
EBITDA
|
|
$1.7 - $2.0
billion
|
$2.2 - $2.5
billion
|
Adjusted EBITDA
Margin
|
|
33% - 36%
|
38% - 40%
|
Adjusted Diluted
EPS
|
|
$9.25 -
$12.25
|
$12.30 -
$15.00
|
Net Cash from
Operations
|
|
$500 - $800
million
|
$550 - $850
million
|
Capital
Expenditures
|
|
$1.3 - $1.5
billion
|
$1.3 - $1.5
billion
|
Lithium adjusted EBITDA for the full year 2022 is now expected
to grow approximately 300% year over year, up from previous
outlook. Average realized pricing is now expected to be up
approximately 140% year over year resulting from the implementation
of index-referenced, variable-price contracts and increased market
pricing. Full-year 2022 volume is expected to be up 20-30% year
over year primarily due to new capacity coming online (unchanged
from previous outlook).
Revised Lithium outlook assumes the company's updated
second-quarter 2022 realized selling price remains constant for the
remainder of the year. There is potential upside if market pricing
remains at historically strong levels or if current fixed contract
renegotiations result in additional index-referenced,
variable-price contracts. There is potential downside in the event
of a material correction in lithium market pricing or potential
volume shortfalls (e.g., delays in acquisitions or expansion
projects).
Investor Conferences
Albemarle regularly attends
investor relations events as listed on our website. As previously
announced, Kent Masters, chief
executive officer, and Scott Tozier,
chief financial officer, will present at the 2022 Jefferies
Renewable Energy Conference in London on May 24,
2022, at 11:00 am ET.
The presentation materials and webcast will be accessible at the
time of the event through the Events and Presentations page on
Albemarle's website
at http://investors.albemarle.com. A webcast replay will be
posted to the company's website immediately following the
conclusion of the event.
About Albemarle
Albemarle Corporation (NYSE: ALB) is a global specialty
chemicals company with leading positions in lithium, bromine and
catalysts. We think beyond business as usual to power the potential
of companies in many of the world's largest and most critical
industries, such as energy, electronics, and transportation. We
actively pursue a sustainable approach to managing our diverse
global footprint of world-class resources. In conjunction with our
highly experienced and talented global teams, our deep-seated
values, and our collaborative customer relationships, we create
value-added and performance-based solutions that enable a safer and
more sustainable future.
We regularly post information to www.albemarle.com, including
notification of events, news, financial performance, investor
presentations and webcasts, non-GAAP reconciliations, SEC filings
and other information regarding our company, its businesses, and
the markets it serves.
Forward-Looking Statements
Some of the information presented in this press release, the
conference call and discussions that follow, including, without
limitation, statements with respect to 2022 outlook, information
related to the timing of active and proposed projects, production
capacity, committed volumes, pricing, financial flexibility,
expected growth, anticipated return on opportunities, earnings and
demand for its products, productivity improvements, tax rates,
stock repurchases, dividends, cash flow generation, costs and cost
synergies, capital projects, future acquisition and divestiture
transactions including statements with respect to timing, expected
benefits from proposed transactions and market and economic trends,
and all other information relating to matters that are not
historical facts may constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Actual results could differ materially from the views
expressed. Factors that could cause Albemarle's actual results to differ
materially from the outlook expressed or implied in any
forward-looking statement include, without limitation: changes in
economic and business conditions; changes in financial and
operating performance of its major customers and industries and
markets served by it; the timing of orders received from customers;
the gain or loss of significant customers; market correction in
lithium market pricing, which would negatively impact our revenues
and profitability due to our increased use of index-referenced,
variable-priced contracts for battery grade lithium sales; changes
with respect to contract renegotiations; potential production
volume shortfalls; competition from other manufacturers; changes in
the demand for its products or the end-user markets in which its
products are sold; limitations or prohibitions on the manufacture
and sale of its products; availability of raw materials; increases
in the cost of raw materials and energy, and its ability to pass
through such increases to its customers; technological change and
development, changes in its markets in general; fluctuations in
foreign currencies; changes in laws and government regulation
impacting its operations or its products; the occurrence of
regulatory actions, proceedings, claims or litigation (including
with respect to the U.S. Foreign Corrupt Practices Act and foreign
anti-corruption laws); the occurrence of cyber-security breaches,
terrorist attacks, industrial accidents or natural disasters, the
effect of climate change, including any regulatory changes to which
it might be subject; hazards associated with chemicals
manufacturing; the inability to maintain current levels of
insurance, including product or premises liability insurance, or
the denial of such coverage; political unrest affecting the global
economy, including adverse effects from terrorism or hostilities;
political instability affecting our manufacturing operations or
joint ventures; changes in accounting standards; the inability to
achieve results from its global manufacturing cost reduction
initiatives as well as its ongoing continuous improvement and
rationalization programs; changes in the jurisdictional mix of its
earnings and changes in tax laws and rates or interpretation;
changes in monetary policies, inflation or interest rates that may
impact its ability to raise capital or increase its cost of funds,
impact the performance of its pension fund investments and increase
its pension expense and funding obligations; volatility and
uncertainties in the debt and equity markets; technology or
intellectual property infringement, including cyber-security
breaches, and other innovation risks; decisions it may make in the
future; future acquisition and divestiture transactions, including
the ability to successfully execute, operate and integrate
acquisitions and divestitures and incurring additional
indebtedness; continuing uncertainties as to the duration and
impact of the coronavirus (COVID-19) pandemic; 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 SEC,
including those described under "Risk Factors" in Albemarle's most recent Annual Report on Form
10-K any subsequently filed Quarterly Reports on Form 10-Q. These
forward-looking statements speak only as of the date of this press
release. Albemarle assumes no
obligation to provide any revisions to any forward-looking
statements should circumstances change, except as otherwise
required by securities and other applicable laws.
Additional Information
It should be noted that adjusted EBITDA, adjusted EBITDA margin
and adjusted diluted earnings per share are financial measures that
are not required by, or presented in accordance with, accounting
principles generally accepted in the
United States, or GAAP. These non-GAAP measures should not
be considered as alternatives to Net income attributable to
Albemarle Corporation ("earnings") or other comparable measures
calculated and reported in accordance with GAAP. These measures are
presented here to provide additional useful measurements to review
the company's operations, provide transparency to investors and
enable period-to-period comparability of financial performance. The
company's chief operating decision maker uses these measures to
assess the ongoing performance of the company and its segments, as
well as for business and enterprise planning purposes.
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.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/albemarle-announces-further-improved-full-year-2022-guidance-301553117.html
SOURCE Albemarle Corporation