CHARLOTTE, N.C., Nov. 8,
2017 /PRNewswire/ --
Third quarter 2017 highlights:
- Third quarter net sales were $754.9
million, an increase of 15% over the prior year
- Third quarter earnings were $118.7
million, or $1.06 per diluted
share
- Third quarter adjusted EBITDA was $209.4
million, an increase of 11% over the prior year; adjusted
diluted earnings per share from continuing operations of
$1.08, an increase of 19% over the
prior year
- Delivered double digit growth despite the impact of hurricane
Harvey, which reduced adjusted EBITDA by $11
million and adjusted diluted earnings per share by
$0.07
- Announced technology innovation to increase efficiency of
lithium extraction in Chile under
existing pumping rates by 50% and requested related quota increase
from CORFO
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
In thousands,
except per share amounts
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net sales
|
$
|
754,866
|
|
|
$
|
654,010
|
|
|
$
|
2,214,187
|
|
|
$
|
1,980,548
|
|
Net income from
continuing operations
|
$
|
130,193
|
|
|
$
|
114,512
|
|
|
$
|
306,539
|
|
|
$
|
428,334
|
|
Net income
attributable to Albemarle Corporation
|
$
|
118,670
|
|
|
$
|
128,220
|
|
|
$
|
273,216
|
|
|
$
|
41,585
|
|
Adjusted
EBITDA
|
$
|
209,383
|
|
|
$
|
188,329
|
|
|
$
|
639,700
|
|
|
$
|
570,833
|
|
Diluted earnings per
share attributable to Albemarle
Corporation
|
$
|
1.06
|
|
|
$
|
1.13
|
|
|
$
|
2.43
|
|
|
$
|
0.37
|
|
Non-operating pension and OPEB items(a)
|
(0.01)
|
|
|
—
|
|
|
(0.02)
|
|
|
—
|
|
Non-recurring and other unusual items(b)
|
0.02
|
|
|
(0.02)
|
|
|
0.84
|
|
|
(0.75)
|
|
Discontinued operations(c)
|
—
|
|
|
(0.20)
|
|
|
—
|
|
|
3.16
|
|
Adjusted diluted
earnings per share from continuing
operations(d)
|
$
|
1.08
|
|
|
$
|
0.91
|
|
|
$
|
3.26
|
|
|
$
|
2.78
|
|
|
See accompanying
notes (a) through (d) to the condensed consolidated financial
information and non-GAAP reconciliations.
|
Albemarle Corporation (NYSE: ALB) reported third quarter 2017
net sales of $754.9 million, earnings
of $118.7 million and adjusted EBITDA
of $209.4 million.
"In the third quarter, we delivered the seventh consecutive
quarter of year over year revenue growth excluding divested
businesses," said Luke Kissam,
Albemarle's Chairman, President
and CEO. "Our revenue, adjusted EBITDA and adjusted diluted EPS
grew by 15%, 11% and 19%, respectively, compared to third quarter
of 2016. Lithium led the way and is now forecasted to grow adjusted
EBITDA by over 50% versus 2016. Our Wave 1 expansion projects in
lithium remain on schedule, and our work related to lithium yield
improvements and exploration of new resources is producing
preliminary results meeting our expectations."
Outlook
Based on our strong performance through the third quarter of
2017, we are increasing our guidance as outlined below:
|
Previous
Outlook
|
|
Current
Outlook
|
Net sales
|
$2.90 - $3.05
billion
|
|
$3.00 - $3.05
billion
|
Adjusted
EBITDA
|
$835 - $875
million
|
|
$860 - $875
million
|
Adjusted EPS (per
diluted share)
|
$4.20 -
$4.40
|
|
$4.40 -
$4.50
|
Results
Third quarter 2017 earnings were $118.7
million, or $1.06 per diluted
share, compared to $128.2 million, or
$1.13 per diluted share in the third
quarter 2016. Earnings per share and adjusted earnings per share
were both negatively impacted by hurricane Harvey by $0.07 per diluted share. Excluding the impact of
hurricane Harvey, the decrease in 2017 was primarily related to
income from discontinued operations of $0.20 per diluted share in 2016, partially offset
by earnings growth of our Lithium and Advanced Materials and
Bromine Specialties segments. Third quarter 2017 adjusted EBITDA
increased by $21.1 million, or 11.2%,
compared to the prior year. Third quarter 2017 adjusted net income
from continuing operations was $120.6
million, or $1.08 per diluted
share, compared to $102.7 million, or
$0.91 per diluted share, for third
quarter 2016, an increase of 18.7%. See notes to the condensed
consolidated financial information for further details. The Company
reported net sales of $754.9 million
in third quarter 2017, up 15.4% from net sales of $654.0 million in the third quarter of 2016,
driven by the favorable impact of higher sales volumes and pricing
impacts of our Lithium and Advanced Materials and Bromine segments
and favorable currency exchange impacts.
For the nine-month period ended September
30, 2017, earnings were $273.2
million, or $2.43 per diluted
share, compared to $41.6 million, or
$0.37 per diluted share for the
nine-month period ended September 30,
2016. Earnings per share and adjusted earnings per share
were both negatively impacted by hurricane Harvey by $0.07 per diluted share. Excluding the impact of
hurricane Harvey, the increase in 2017 was primarily driven by a
loss from discontinued operations of $3.16 per diluted share in 2016, as well as
earnings growth in our Lithium and Advanced Materials and Bromine
Specialties segments. For the nine-month period ended September 30, 2017, adjusted EBITDA was
$639.7 million, up 12.1% compared to
$570.8 million for the same period in
2016. For the nine-month period ended September 30, 2017, adjusted net income from
continuing operations was $366.0
million, or $3.26 per diluted
share, compared to $315.0 million, or
$2.78 per diluted share, for the same
period in 2016, an increase of 17.3%. See notes to the
condensed consolidated financial information for further details.
The Company reported net sales for the nine-month period ended
September 30, 2017 of $2.21 billion, up 11.8% from net sales of
$1.98 billion, driven by the
favorable impact of higher sales volumes in each of our three
reportable segments and pricing impacts of our Lithium and Advanced
Materials segment, partially offset by the impact of the
divestiture of the minerals-based flame retardants and specialty
chemicals business and unfavorable currency exchange impacts.
Quarterly Segment Results
Lithium and Advanced Materials reported net sales of
$343.6 million in the third quarter
of 2017, an increase of 42.9% from third quarter 2016 net sales of
$240.4 million. The $103.1 million increase in net sales as compared
to prior year was primarily due to favorable pricing impacts,
increased sales volumes and $1.6
million of favorable currency exchange impacts. Adjusted
EBITDA for Lithium and Advanced Materials was $130.2 million, an increase of 42.0% from third
quarter 2016 results of $91.7
million. The $38.5 million
increase in adjusted EBITDA as compared to the prior year was
primarily due to favorable pricing impacts and increased sales
volumes, partially offset by Lithium growth spending, a
$3.9 million negative impact from
hurricane Harvey on Performance Catalyst Solutions ("PCS") and
$0.2 million of unfavorable currency
exchange impacts.
Bromine Specialties reported net sales of $212.9 million in the third quarter of 2017, an
increase of 9.5% from third quarter 2016 net sales of $194.5 million. The $18.4
million increase in net sales as compared to the prior year
was primarily due to increased sales volumes related to flame
retardants and favorable pricing impacts. Adjusted EBITDA for
Bromine Specialties was $63.9
million, an increase of 23.4% from third quarter 2016
results of $51.8 million. The
$12.1 million increase in adjusted
EBITDA as compared to the prior year was primarily due to higher
volume and favorable pricing impacts, partially offset by higher
selling, general and administrative costs and a $2.7 million negative impact from hurricane
Harvey.
Refining Solutions reported net sales of $170.3 million in the third quarter of 2017, a
decrease of 10.6% from net sales of $190.5
million in the third quarter of 2016. The $20.2 million decrease in net sales as compared
to the prior year was primarily due to lower sales volumes and
unfavorable pricing impacts due to customer and product mix,
partially offset by $1.4 million of
favorable currency exchange impacts. Adjusted EBITDA for Refining
Solutions was $43.1 million in the
third quarter of 2017, a decrease of 33.6% from third quarter 2016
results of $65.0 million. The
$21.8 million decrease in adjusted
EBITDA as compared to the prior year was primarily due to
unfavorable volume and mix impacts, as well as a $4.8 million negative impact from hurricane
Harvey.
All Other net sales were $28.0
million in the third quarter of 2017, a decrease of 0.9%
from net sales of $28.3 million in
the third quarter of 2016. The $0.3
million decrease in net sales as compared to the prior year
was primarily due to lower sales volumes partially offset by
favorable pricing for the fine chemistry services business. All
Other adjusted EBITDA was $0.3
million in the third quarter of 2017, a decrease of 94.4%
from third quarter 2016 results of $5.5
million. The $5.2 million
decrease in adjusted EBITDA as compared to the prior year was
primarily due to a $2.9 million gain
in the fair value of our investment in private equity securities
for the three-month period ended September 30, 2016 and the
impact of the divestiture of $1.3
million. Excluding these items, adjusted EBITDA decreased
$1.0 million due to lower volume and
slightly higher costs in the fine chemistry services business.
Corporate Results
Corporate adjusted EBITDA was a loss of $28.2 million in the third quarter of 2017
compared to a loss of $25.6 million
in the third quarter of 2016. The decrease in Corporate adjusted
EBITDA was primarily due to $2.1
million of unfavorable currency exchange impacts.
Income Taxes
Our effective income tax rates for the third quarter of 2017 and
2016 of 14.3% and 11.1%, respectively, are influenced by
non-recurring, other unusual and non-operating pension and OPEB
items (see notes to the condensed consolidated financial
information). Our adjusted effective income tax rates, which
exclude non-recurring, other unusual and non-operating pension and
OPEB items, were 17.0% and 18.2% for the third quarter of 2017 and
2016, respectively, and continue to be influenced by the level and
geographic mix of income. The increase in the effective tax rate in
the third quarter of 2017 compared to 2016 was impacted by a
variety of factors, primarily stemming from the discrete tax
benefit in 2016 related to accrual to return adjustments of
$6.1 million driven mainly by
adjustments to our Chilean entity. Our effective income tax rates
for the nine months ended September 30, 2017 and 2016 were
17.6% and 13.8%, respectively, and our adjusted effective income
tax rates for the nine months ended September 30, 2017 and
2016 were 19.5% and 18.5%, respectively. The effective tax rate in
2016 was driven down by a variety of factors, primarily low tax
gains from the sale of the minerals-based flame retardant
business.
Cash Flow
Our cash from operations was approximately $74.8 million for the nine months ended
September 30, 2017, down $379.3
million versus the same period in 2016 primarily due to
changes in working capital, including the payment of approximately
$255 million in taxes related to the
sale of the Chemetall Surface Treatment business in 2017. We had
$1.05 billion in cash and cash
equivalents at September 30, 2017, as compared to $2.27 billion at December
31, 2016. During the first nine months of 2017, cash on
hand, cash provided by operations and net borrowings funded
$753.2 million of debt repayments,
primarily related to the senior notes, $187.5 million of capital expenditures for plant,
machinery and equipment, dividends to shareholders of $105.2 million and a $250.0 million accelerated share repurchase
program. As a result of the program, we received and retired
approximately 2.3 million shares of our common stock in the second
quarter of 2017.
Earnings Call
The Company's performance for the third quarter ended
September 30, 2017 will be discussed on a conference call at
9:00 AM Eastern time on
November 9, 2017. The call can be accessed by dialing
888-713-4199 (International Dial-In # 617-213-4861), and entering
conference ID 31692592. The Company's earnings presentation and
supporting material can be accessed through Albemarle's website under Investors at
www.albemarle.com.
About Albemarle
Albemarle Corporation (NYSE: ALB), headquartered in Charlotte, NC, is a global specialty chemicals
company with leading positions in lithium, bromine and refining
catalysts. We power the potential of companies in many of the
world's largest and most critical industries, from energy and
communications to transportation and electronics. Working
side-by-side with our customers, we develop value-added, customized
solutions that make them more competitive. Our solutions combine
the finest technology and ingredients with the knowledge and
know-how of our highly experienced and talented team of operators,
scientists and engineers.
Discovering and implementing new and better performance-based
sustainable solutions is what motivates all of us. We think beyond
business-as-usual to drive innovations that create lasting value.
Albemarle employs approximately
4,500 people and serves customers in approximately 100 countries.
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, product development, changes in productivity, market
trends, price, expected growth and earnings, input costs,
surcharges, tax rates, stock repurchases, dividends, cash flow
generation, costs and cost synergies, portfolio diversification,
economic trends, outlook 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 actual results to differ materially include, without
limitation: changes in economic and business conditions; changes in
financial and operating performance of our major customers and
industries and markets served by us; the timing of orders received
from customers; the gain or loss of significant customers;
competition from other manufacturers; changes in the demand for our
products; limitations or prohibitions on the manufacture and sale
of our products; availability of raw materials; changes in the cost
of raw materials and energy; changes in our markets in general;
fluctuations in foreign currencies; changes in laws and government
regulation impacting our operations or our products; the occurrence
of regulatory proceedings, claims or litigation; the occurrence of
cybersecurity breaches, terrorist attacks, industrial accidents,
natural disasters or climate change; the inability to maintain
current levels of product or premises liability insurance or the
denial of such coverage; political unrest affecting the global
economy; political instability affecting our manufacturing
operations or joint ventures; changes in accounting standards; the
inability to achieve results from our global manufacturing cost
reduction initiatives as well as our ongoing continuous improvement
and rationalization programs; changes in the jurisdictional mix of
our earnings and changes in tax laws and rates; changes in monetary
policies, inflation or interest rates; volatility and substantial
uncertainties in the debt and equity markets; technology or
intellectual property infringement; decisions we may make in the
future; the ability to successfully execute, operate and integrate
acquisitions and divestitures; and the other factors detailed from
time to time in the reports we file with the SEC, including those
described under "Risk Factors" in our Annual Report on Form 10-K
and our Quarterly Reports on Form 10-Q. These forward-looking
statements speak only as of the date of this press release. We
assume no obligation to provide any revisions to any
forward-looking statements should circumstances change, except as
otherwise required by securities and other applicable laws.
Albemarle Corporation
and Subsidiaries
Consolidated Statements of Income
(In Thousands Except Per Share Amounts) (Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net
sales
|
$
|
754,866
|
|
|
$
|
654,010
|
|
|
$
|
2,214,187
|
|
|
$
|
1,980,548
|
|
Cost of goods
sold(a)(b)
|
479,077
|
|
|
415,038
|
|
|
1,411,216
|
|
|
1,250,938
|
|
Gross
profit
|
275,789
|
|
|
238,972
|
|
|
802,971
|
|
|
729,610
|
|
Selling, general and
administrative expenses(a)(b)
|
105,582
|
|
|
86,302
|
|
|
329,269
|
|
|
254,988
|
|
Research and
development expenses(b)
|
21,763
|
|
|
21,012
|
|
|
63,423
|
|
|
61,384
|
|
Gain on sales of
businesses, net(b)
|
—
|
|
|
—
|
|
|
—
|
|
|
(122,298)
|
|
Acquisition and
integration related costs(b)
|
—
|
|
|
6,749
|
|
|
—
|
|
|
44,337
|
|
Operating
profit
|
148,444
|
|
|
124,909
|
|
|
410,279
|
|
|
491,199
|
|
Interest and
financing expenses(b)
|
(15,792)
|
|
|
(15,946)
|
|
|
(98,895)
|
|
|
(46,860)
|
|
Other (expenses)
income, net(b)
|
(3,008)
|
|
|
2,990
|
|
|
(6,512)
|
|
|
740
|
|
Income from
continuing operations before income taxes
and equity in net income of unconsolidated investments
|
129,644
|
|
|
111,953
|
|
|
304,872
|
|
|
445,079
|
|
Income tax
expense(b)
|
18,495
|
|
|
12,394
|
|
|
53,596
|
|
|
61,535
|
|
Income from
continuing operations before equity in net
income of unconsolidated investments
|
111,149
|
|
|
99,559
|
|
|
251,276
|
|
|
383,544
|
|
Equity in net income
of unconsolidated investments (net of
tax)
|
19,044
|
|
|
14,953
|
|
|
55,263
|
|
|
44,790
|
|
Net income from
continuing operations
|
130,193
|
|
|
114,512
|
|
|
306,539
|
|
|
428,334
|
|
Income (loss) from
discontinued operations (net of tax)(c)
|
—
|
|
|
23,185
|
|
|
—
|
|
|
(357,843)
|
|
Net income
|
130,193
|
|
|
137,697
|
|
|
306,539
|
|
|
70,491
|
|
Net income
attributable to noncontrolling interests
|
(11,523)
|
|
|
(9,477)
|
|
|
(33,323)
|
|
|
(28,906)
|
|
Net income
attributable to Albemarle Corporation
|
$
|
118,670
|
|
|
$
|
128,220
|
|
|
$
|
273,216
|
|
|
$
|
41,585
|
|
Basic earnings (loss)
per share:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
1.07
|
|
|
$
|
0.93
|
|
|
$
|
2.46
|
|
|
$
|
3.56
|
|
Discontinued
operations
|
—
|
|
|
0.21
|
|
|
—
|
|
|
(3.19)
|
|
|
$
|
1.07
|
|
|
$
|
1.14
|
|
|
$
|
2.46
|
|
|
$
|
0.37
|
|
Diluted earnings
(loss) per share:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
1.06
|
|
|
$
|
0.93
|
|
|
$
|
2.43
|
|
|
$
|
3.53
|
|
Discontinued
operations
|
—
|
|
|
0.20
|
|
|
—
|
|
|
(3.16)
|
|
|
$
|
1.06
|
|
|
$
|
1.13
|
|
|
$
|
2.43
|
|
|
$
|
0.37
|
|
Weighted-average
common shares outstanding – basic
|
110,476
|
|
|
112,429
|
|
|
111,049
|
|
|
112,343
|
|
Weighted-average
common shares outstanding – diluted
|
111,975
|
|
|
113,448
|
|
|
112,456
|
|
|
113,131
|
|
|
See accompanying
notes to the condensed consolidated financial
information.
|
Albemarle Corporation
and Subsidiaries
Condensed Consolidated Balance Sheets
(In Thousands) (Unaudited)
|
|
|
September
30,
|
|
December
31,
|
|
2017
|
|
2016
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
|
1,045,339
|
|
|
$
|
2,269,756
|
|
Other current
assets
|
1,281,985
|
|
|
1,036,862
|
|
Total current
assets
|
2,327,324
|
|
|
3,306,618
|
|
Property, plant and
equipment
|
4,167,065
|
|
|
3,910,522
|
|
Less accumulated
depreciation and amortization
|
1,682,780
|
|
|
1,550,382
|
|
Net property, plant
and equipment
|
2,484,285
|
|
|
2,360,140
|
|
Other assets and
intangibles
|
2,711,691
|
|
|
2,494,449
|
|
Total
assets
|
$
|
7,523,300
|
|
|
$
|
8,161,207
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current portion of
long-term debt
|
$
|
382,358
|
|
|
$
|
247,544
|
|
Other current
liabilities
|
720,659
|
|
|
892,559
|
|
Total current
liabilities
|
1,103,017
|
|
|
1,140,103
|
|
Long-term
debt
|
1,407,171
|
|
|
2,121,718
|
|
Other noncurrent
liabilities
|
559,506
|
|
|
544,043
|
|
Deferred income
taxes
|
414,034
|
|
|
412,739
|
|
Albemarle Corporation
shareholders' equity
|
3,898,819
|
|
|
3,795,062
|
|
Noncontrolling
interests
|
140,753
|
|
|
147,542
|
|
Total liabilities and
equity
|
$
|
7,523,300
|
|
|
$
|
8,161,207
|
|
|
See accompanying
notes to the condensed consolidated financial
information.
|
Albemarle Corporation
and Subsidiaries
Selected Consolidated
Cash Flow Data
(In Thousands)
(Unaudited)
|
|
|
Nine Months
Ended
|
|
September
30,
|
|
2017
|
|
2016
|
Cash and cash
equivalents at beginning of year
|
$
|
2,269,756
|
|
|
$
|
213,734
|
|
Cash and cash
equivalents at end of period
|
$
|
1,045,339
|
|
|
$
|
233,599
|
|
Sources of cash
and cash equivalents:
|
|
|
|
Net income
|
$
|
306,539
|
|
|
$
|
70,491
|
|
Cash proceeds from
divestitures, net
|
6,857
|
|
|
310,599
|
|
Proceeds from
borrowings of long-term debt
|
27,000
|
|
|
—
|
|
Other borrowings,
net
|
79,203
|
|
|
—
|
|
Dividends received
from unconsolidated investments and nonmarketable
securities
|
11,900
|
|
|
34,982
|
|
Proceeds from exercise
of stock options
|
7,011
|
|
|
6,779
|
|
Uses of cash and
cash equivalents:
|
|
|
|
Working capital
changes
|
(398,913)
|
|
|
(79,684)
|
|
Capital
expenditures
|
(187,519)
|
|
|
(141,301)
|
|
Acquisitions, net of
cash acquired
|
(45,406)
|
|
|
—
|
|
Cash payments related
to acquisitions and other
|
—
|
|
|
(81,988)
|
|
Repayments of
long-term debt
|
(753,209)
|
|
|
(382,730)
|
|
Repurchases of common
stock
|
(250,000)
|
|
|
—
|
|
Repayments of other
borrowings, net
|
—
|
|
|
(9,026)
|
|
Pension and
postretirement contributions
|
(9,607)
|
|
|
(13,649)
|
|
Dividends paid to
shareholders
|
(105,205)
|
|
|
(101,061)
|
|
Fees related to early
extinguishment of debt
|
(46,959)
|
|
|
—
|
|
Dividends paid to
noncontrolling interests
|
(27,791)
|
|
|
(23,873)
|
|
Non-cash and other
items:
|
|
|
|
Depreciation and
amortization
|
144,087
|
|
|
176,499
|
|
Gain on sales of
businesses, net
|
—
|
|
|
(122,298)
|
|
Gain on
acquisition
|
(6,025)
|
|
|
—
|
|
Pension and
postretirement expense
|
67
|
|
|
7,911
|
|
Loss on early
extinguishment of debt
|
52,801
|
|
|
—
|
|
Deferred income
taxes
|
4,677
|
|
|
404,728
|
|
Equity in net income
of unconsolidated investments (net of tax)
|
(55,263)
|
|
|
(46,224)
|
|
|
See accompanying
notes to the condensed consolidated financial
information.
|
Albemarle Corporation
and Subsidiaries
Consolidated Summary of Segment Results
(In Thousands) (Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net
sales:
|
|
|
|
|
|
|
|
Lithium and Advanced
Materials
|
$
|
343,557
|
|
|
$
|
240,424
|
|
|
$
|
945,791
|
|
|
$
|
689,950
|
|
Bromine
Specialties
|
212,923
|
|
|
194,496
|
|
|
636,059
|
|
|
597,912
|
|
Refining
Solutions
|
170,275
|
|
|
190,453
|
|
|
539,904
|
|
|
539,044
|
|
All Other
|
28,021
|
|
|
28,272
|
|
|
91,144
|
|
|
150,987
|
|
Corporate
|
90
|
|
|
365
|
|
|
1,289
|
|
|
2,655
|
|
Total net
sales
|
$
|
754,866
|
|
|
$
|
654,010
|
|
|
$
|
2,214,187
|
|
|
$
|
1,980,548
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
Lithium and Advanced
Materials
|
$
|
130,218
|
|
|
$
|
91,719
|
|
|
$
|
382,789
|
|
|
$
|
260,861
|
|
Bromine
Specialties
|
63,936
|
|
|
51,807
|
|
|
194,499
|
|
|
179,977
|
|
Refining
Solutions
|
43,120
|
|
|
64,960
|
|
|
142,777
|
|
|
181,620
|
|
All Other
|
306
|
|
|
5,470
|
|
|
7,906
|
|
|
14,810
|
|
Corporate(a)
|
(28,197)
|
|
|
(25,627)
|
|
|
(88,271)
|
|
|
(66,435)
|
|
Total adjusted
EBITDA
|
$
|
209,383
|
|
|
$
|
188,329
|
|
|
$
|
639,700
|
|
|
$
|
570,833
|
|
Lithium and Advanced
Materials - details by product category:
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net
sales:
|
|
|
|
|
|
|
|
Lithium
|
$
|
269,238
|
|
|
$
|
166,406
|
|
|
$
|
729,288
|
|
|
$
|
460,679
|
|
PCS
|
74,319
|
|
|
74,018
|
|
|
216,503
|
|
|
229,271
|
|
Total Lithium and
Advanced Materials
|
$
|
343,557
|
|
|
$
|
240,424
|
|
|
$
|
945,791
|
|
|
$
|
689,950
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
Lithium
|
$
|
112,944
|
|
|
$
|
68,637
|
|
|
$
|
327,996
|
|
|
$
|
196,617
|
|
PCS
|
17,274
|
|
|
23,082
|
|
|
54,793
|
|
|
64,244
|
|
Total Lithium and
Advanced Materials
|
$
|
130,218
|
|
|
$
|
91,719
|
|
|
$
|
382,789
|
|
|
$
|
260,861
|
|
|
See accompanying
notes to the condensed consolidated financial information and
non-GAAP reconciliations below.
|
Notes to the Condensed Consolidated Financial Information
(a) Non-operating pension and OPEB items, consisting
of MTM actuarial gains/losses, settlements/curtailments, interest
cost and expected return on assets, are not allocated to our
reportable segments and are included in the Corporate category.
Although non-operating pension and OPEB items are included in Cost
of goods sold and Selling, general and administrative expenses in
accordance with GAAP, we believe that these components of pension
cost are mainly driven by market performance, and we manage these
separately from the operational performance of our businesses.
Non-operating pension and OPEB items included in Cost of goods sold
and Selling, general and administrative expenses were as follows
(in millions):
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Cost of goods
sold:
|
|
|
|
|
|
|
|
Interest cost and
expected return on assets, net
|
$
|
(0.1)
|
|
|
$
|
(0.2)
|
|
|
$
|
(0.4)
|
|
|
$
|
(0.5)
|
|
Total
|
$
|
(0.1)
|
|
|
$
|
(0.2)
|
|
|
$
|
(0.4)
|
|
|
$
|
(0.5)
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses:
|
|
|
|
|
|
|
|
Interest cost and
expected return on assets, net
|
$
|
(0.9)
|
|
|
$
|
(0.1)
|
|
|
$
|
(2.7)
|
|
|
$
|
(0.3)
|
|
Total
|
$
|
(0.9)
|
|
|
$
|
(0.1)
|
|
|
$
|
(2.7)
|
|
|
$
|
(0.3)
|
|
(b) In addition to the non-operating pension and
OPEB items disclosed above, we have identified certain other items
from continuing operations and excluded them from our adjusted net
income calculation for the periods presented. A listing of these
items, as well as a detailed description of each follows below (per
diluted share):
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Utilization of
inventory markup(1)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.16
|
|
|
$
|
—
|
|
Write-off of research
and development fixed assets(2)
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
Restructuring and
other, net(3)
|
—
|
|
|
—
|
|
|
0.11
|
|
|
—
|
|
Acquisition and
integration related costs(4)
|
0.02
|
|
|
0.03
|
|
|
0.18
|
|
|
0.26
|
|
Gain on sales of
businesses, net(5)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.02)
|
|
Gain on sales of
properties, net(6)
|
—
|
|
|
(0.01)
|
|
|
—
|
|
|
(0.01)
|
|
Gain on
acquisition(7)
|
0.01
|
|
|
—
|
|
|
(0.05)
|
|
|
—
|
|
Loss on
extinguishment of debt(8)
|
—
|
|
|
—
|
|
|
0.34
|
|
|
—
|
|
Multiemployer plan
shortfall contributions(9)
|
0.01
|
|
|
—
|
|
|
0.04
|
|
|
—
|
|
Other(10)
|
(0.01)
|
|
|
—
|
|
|
0.04
|
|
|
—
|
|
Discrete tax
items(11)
|
(0.01)
|
|
|
(0.05)
|
|
|
0.02
|
|
|
0.01
|
|
Total non-recurring
and other unusual items
|
$
|
0.02
|
|
|
$
|
(0.02)
|
|
|
$
|
0.84
|
|
|
$
|
(0.75)
|
|
(1) In connection
with the acquisition of the lithium hydroxide and lithium carbonate
conversion business of Jiangxi Jiangli New Materials Science and
Technology Co. Ltd. ("Jiangli New Materials"), the Company valued
inventory purchased from Jiangli New Materials at fair value, which
resulted in a markup of the underlying net book value of the
inventory totaling approximately $23.1
million. The inventory markup was expensed over the
estimated remaining selling period. For the three and nine months
ended September 30, 2017,
$0.6 million and $23.1 million ($0.2
million and $17.8 million
after income taxes, or less than $0.01 and $0.16 per
share), respectively, was included in Cost of goods sold related to
the utilization of the inventory markup.
(2) Included in
Research and development expenses for the three and nine months
ended September 30, 2016 is a loss of
$1.4 million ($0.6 million after income taxes, or $0.01 per share) resulting from the write-off of
research and development fixed assets in China.
(3) The nine months
ended September 30, 2017 included
restructuring costs in each of our reportable segments at several
locations, primarily at our Lithium site in Germany. These restructuring costs are
included in the consolidated statements of income as follows (in
millions):
|
Nine Months
Ended
|
|
September 30,
2017
|
Restructuring and
other costs:
|
|
Cost of goods
sold
|
$
|
2.9
|
|
Selling, general and
administrative expenses
|
8.4
|
|
Research and
development expenses
|
5.8
|
|
Total
|
$
|
17.1
|
|
Total restructuring
and other costs, after income taxes
|
$
|
13.0
|
|
Total restructuring
and other costs, per diluted share
|
$
|
0.11
|
|
(4) Acquisition and
integration related costs for the three and nine months ended
September 30, 2017 primarily resulted
from the acquisition of Jiangli New Materials. For the three and
nine months ended September 30, 2016,
acquisition and integration related costs of $6.3 million and $42.4
million, respectively, related to integration costs
resulting from the acquisition of Rockwood, and $0.4 million and $1.9
million, respectively, were in connection with other
significant projects. Acquisition and integration related costs are
included in the consolidated statements of income as follows (in
millions):
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Acquisition and
integration related costs:
|
|
|
|
|
|
|
|
Cost of goods
sold
|
$
|
1.8
|
|
|
$
|
—
|
|
|
$
|
12.5
|
|
|
$
|
—
|
|
Selling, general and
administrative expenses
|
3.8
|
|
|
—
|
|
|
13.9
|
|
|
—
|
|
Acquisition and
integration related costs
|
—
|
|
|
6.7
|
|
|
—
|
|
|
44.3
|
|
Total
|
$
|
5.6
|
|
|
$
|
6.7
|
|
|
$
|
26.4
|
|
|
$
|
44.3
|
|
Total acquisition and
integration related costs,
after income taxes
|
$
|
2.6
|
|
|
$
|
3.1
|
|
|
$
|
20.1
|
|
|
$
|
29.5
|
|
Total acquisition and
integration related costs,
per diluted share
|
$
|
0.02
|
|
|
$
|
0.03
|
|
|
$
|
0.18
|
|
|
$
|
0.26
|
|
(5) Included in Gain
on sales of businesses, net, for the nine months ended September 30, 2016 is $11.5 million ($11.3
million after income taxes, or $0.10 per share) related to the sale of the metal
sulfides business and $112.3 million
($105.8 million after income taxes,
or $0.93 per share) related to the
sale of the minerals-based flame retardants and specialty chemicals
businesses. In addition, Gain on sales of businesses, net, for the
nine months ended September 30, 2016
includes a loss of $1.5 million, or
$0.01 per share, on the sale of our
wafer reclaim business.
(6) Included in Other
(expenses) income, net for the three and nine months ended
September 30, 2016 is a net gain of
$0.9 million ($0.4 million after income taxes, or $0.01 per share) on the sales of properties.
(7) Included in Other
(expenses) income, net, for the nine months ended September 30, 2017 is a gain of $6.0 million ($5.4
million after income taxes, or $0.05 per share) related to the acquisition of
the remaining 50% interest in the Sales de Magnesio Ltda. joint
venture in Chile. During the three
months ended September 30, 2017 we
adjusted this gain to reduce it by $1.4
million ($0.6 million after
income taxes, or $0.01 per share).
The gain was calculated based on the difference between the
purchase price and the book value of the investment.
(8) Included in Interest and
financing expenses for the nine months ended September 30, 2017 is a loss on early
extinguishment of debt of $52.8
million ($38.1 million after
income taxes, or $0.34 per share)
related to the tender premiums, fees, unamortized discounts and
unamortized deferred financings costs from the redemption of the
3.00% Senior notes, €307.0 million of the 1.875% Senior notes and
$174.7 million of the 4.50% Senior
notes.
(9) Included in Selling,
general and administrative expenses for the nine months ended
September 30, 2017 is $2.0 million ($1.4
million after income taxes, or $0.01 per share) for increased capital reserve
contributions to a multiemployer plan, which is subject to a
financial improvement plan. In addition, for the three and nine
months ended September 30, 2017,
capital reserve contributions for this multiemployer plan of
$1.6 million and $4.6 million ($0.6
million and $2.8 million after
income taxes, or $0.01 and
$0.03 per share), respectively,
included in Other (expenses) income, net, have been made to
indemnify previously divested businesses.
(10) Other adjustments for the
three months ended September 30, 2017
included amounts recorded in:
- Cost of goods sold - $1.3 million
reversal of deferred income related to an abandoned project at an
unconsolidated investment.
- Other (expenses) income, net - $1.1
million related to a reversal of a liability associated with
the previous disposal of a property, partially offset by the
revision of tax indemnification expenses of $0.7 million primarily related to the filing of
tax returns for a previously disposed business.
After income taxes, these net
gains totaled $1.1 million, or
$0.01 per share.
Other adjustments for the nine
months ended September 30, 2017
included amounts recorded in:
- Cost of goods sold - $1.3 million
reversal of deferred income related to an abandoned project at an
unconsolidated investment.
- Selling, general and administrative expenses - $1.0 million related to a reversal of an accrual
recorded as part of purchase accounting from a previous
acquisition.
- Other (expenses) income, net - $3.2
million of asset retirement obligation charges related to
the revision of an estimate at a site formerly owned by
Albemarle, a loss of $2.1 million associated with the previous
disposal of a business, final settlement claims associated with the
previous disposal of a business of $2.0
million and the revision of tax indemnification expenses of
$1.9 million primarily related to the
filing of tax returns and a competent authority agreement for a
previously disposed business, partially offset by a reversal of a
liability associated with the previous disposal of a property of
$1.1 million.
After income taxes, these net
charges totaled $4.5 million, or
$0.04 per share.
(11) Included in Income tax
expense for the three and nine months ended September 30, 2017 are discrete net tax
(benefits) expenses of ($0.4)
million, or ($0.01) per share,
and $2.7 million, or $0.02 per share, respectively. The net benefit
for the three months is primarily related to a $2.2 million benefit from the excess tax benefits
realized from stock-based compensation arrangements, and
$1.0 million from the release of
valuation allowances due to a foreign restructure plan, partially
offset by expenses from accrual to return and rate changes of
$2.8 million. The net expense for the
nine months is primarily related to foreign rate changes of
$14.8 million and accrual to return
adjustments of $7.9 million,
partially offset by a $10.8 million
benefit from the release of valuation allowances due to a foreign
restructuring plan, $2.3 million from
release of unrecognized tax benefits, and $6.9 million benefit from excess tax benefits
realized from stock-based compensation arrangements. Included in
Income tax expense for the three months ended September 30, 2016 are benefits of $5.5 million, or $0.05 per share respectively, related mainly to
foreign provision to return adjustments. Included in Income tax
expense for the nine months ended September
30, 2016 are expense items of $1.6
million, or $0.01 per share
respectively, related mainly to a change in the Company's assertion
over book and tax basis differences of a foreign entity, changes in
valuation allowances necessary because of the announced divestiture
of the Chemetall Surface Treatment business, and decreased by
foreign tax rate changes and provision to return adjustments.
(c) On June 17, 2016, the Company entered into a
definitive agreement to sell the Chemetall Surface Treatment
business to BASF SE. On December 14, 2016, the Company closed the
sale of this business for cash proceeds of approximately $3.1
billion, net of purchase price adjustments. Income (loss) from
discontinued operations (net of tax) in the consolidated statements
of income for the nine months ended September 30, 2016 includes a
discrete non-cash charge of $381.5 million due to a change in the
Company's assertion over book and tax basis differences related to
a U.S. entity being sold, as well as a discrete non-cash charge of
$29.8 million related to a change in the Company's assertion over
reinvestment of foreign undistributed earnings.
(d) Totals may not add due to rounding.
Additional Information
It should be noted that adjusted net income from continuing
operations, adjusted diluted earnings per share attributable to
Albemarle Corporation, adjusted diluted earnings per share from
continuing operations, non-operating pension and OPEB items per
diluted share, non-recurring and other unusual items per diluted
share, adjusted effective income tax rates, EBITDA, adjusted
EBITDA, EBITDA margin and adjusted EBITDA margin 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"). These measures
are presented here to provide additional useful measurements to
review our 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.
A description of other non-GAAP financial measures that we use
to evaluate our operations and financial performance, and
reconciliation of these non-GAAP financial measures to the most
directly comparable financial measures calculated and reported in
accordance with GAAP, can be found in the Investors section of our
website at www.albemarle.com, under "Non-GAAP Reconciliations"
under "Financials." Also, see the following pages for supplemental
reconciliations of the non-GAAP financial measures to the most
directly comparable financial measures calculated and reported in
accordance with GAAP. 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.
ALBEMARLE
CORPORATION AND SUBSIDIARIES
Non-GAAP
Reconciliations
(In
Thousands)
(Unaudited)
See below for a reconciliation of adjusted net income from
continuing operations, EBITDA and adjusted EBITDA, the non-GAAP
financial measures, to Net income attributable to Albemarle
Corporation ("earnings"), the most directly comparable financial
measure calculated and reported in accordance with GAAP. Adjusted
earnings is defined as earnings before the non-recurring, other
unusual and non-operating pension and OPEB items as listed below.
EBITDA is defined as earnings before discontinued operations,
interest and financing expenses, income taxes, and depreciation and
amortization. Adjusted EBITDA is defined as EBITDA and the
non-recurring, other unusual and non-operating pension and OPEB
items as listed below.
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net income
attributable to Albemarle Corporation
|
$
|
118,670
|
|
|
$
|
128,220
|
|
|
$
|
273,216
|
|
|
$
|
41,585
|
|
Add back:
|
|
|
|
|
|
|
|
(Income) loss from
discontinued operations (net of tax)
|
—
|
|
|
(23,185)
|
|
|
—
|
|
|
357,843
|
|
Earnings from
continuing operations
|
118,670
|
|
|
105,035
|
|
|
273,216
|
|
|
399,428
|
|
Add back:
|
|
|
|
|
|
|
|
Non-operating pension
and OPEB items from continuing operations
(net of tax)
|
(694)
|
|
|
(154)
|
|
|
(2,093)
|
|
|
(260)
|
|
Non-recurring and
other unusual items from continuing operations
(net of tax)
|
2,575
|
|
|
(2,170)
|
|
|
94,918
|
|
|
(84,218)
|
|
Adjusted net income
from continuing operations
|
$
|
120,551
|
|
|
$
|
102,711
|
|
|
$
|
366,041
|
|
|
$
|
314,950
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
earnings per share from continuing operations
|
$
|
1.08
|
|
|
$
|
0.91
|
|
|
$
|
3.26
|
|
|
$
|
2.78
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding – diluted
|
111,975
|
|
|
113,448
|
|
|
112,456
|
|
|
113,131
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Albemarle Corporation
|
$
|
118,670
|
|
|
$
|
128,220
|
|
|
$
|
273,216
|
|
|
$
|
41,585
|
|
Add back:
|
|
|
|
|
|
|
|
(Income) loss from
discontinued operations (net of tax)
|
—
|
|
|
(23,185)
|
|
|
—
|
|
|
357,843
|
|
Interest and financing
expenses
|
15,792
|
|
|
15,946
|
|
|
98,895
|
|
|
46,860
|
|
Income tax
expense
|
18,495
|
|
|
12,394
|
|
|
53,596
|
|
|
61,535
|
|
Depreciation and
amortization
|
49,895
|
|
|
47,974
|
|
|
144,087
|
|
|
141,288
|
|
EBITDA
|
202,852
|
|
|
181,349
|
|
|
569,794
|
|
|
649,111
|
|
Non-operating pension
and OPEB items
|
(1,028)
|
|
|
(231)
|
|
|
(3,144)
|
|
|
(779)
|
|
Non-recurring and
other unusual items (excluding items associated
with interest expense)
|
7,559
|
|
|
7,211
|
|
|
73,050
|
|
|
(77,499)
|
|
Adjusted
EBITDA
|
$
|
209,383
|
|
|
$
|
188,329
|
|
|
$
|
639,700
|
|
|
$
|
570,833
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
754,866
|
|
|
$
|
654,010
|
|
|
$
|
2,214,187
|
|
|
$
|
1,980,548
|
|
EBITDA
margin
|
26.9
|
%
|
|
27.7
|
%
|
|
25.7
|
%
|
|
32.8
|
%
|
Adjusted EBITDA
margin
|
27.7
|
%
|
|
28.8
|
%
|
|
28.9
|
%
|
|
28.8
|
%
|
See below for a reconciliation of adjusted EBITDA on a segment
basis, the non-GAAP financial measure, to Net income attributable
to Albemarle Corporation, the most directly comparable financial
measure calculated and reporting in accordance with GAAP.
|
Lithium
and
Advanced
Materials
|
|
Bromine
Specialties
|
|
Refining
Solutions
|
|
Reportable
Segments
Total
|
|
All
Other
|
|
Corporate
|
|
Consolidated
Total
|
|
% of
Net
Sales
|
Three months ended
September 30, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Albemarle
Corporation
|
$
|
103,199
|
|
|
$
|
53,760
|
|
|
$
|
34,392
|
|
|
$
|
191,351
|
|
|
$
|
(1,776)
|
|
|
$
|
(70,905)
|
|
|
$
|
118,670
|
|
|
15.7
|
%
|
Depreciation and
amortization
|
26,136
|
|
|
10,176
|
|
|
9,978
|
|
|
46,290
|
|
|
2,082
|
|
|
1,523
|
|
|
49,895
|
|
|
6.6
|
%
|
Non-recurring and
other unusual items
|
883
|
|
|
—
|
|
|
(1,250)
|
|
|
(367)
|
|
|
—
|
|
|
7,926
|
|
|
7,559
|
|
|
1.0
|
%
|
Interest and
financing expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,792
|
|
|
15,792
|
|
|
2.1
|
%
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,495
|
|
|
18,495
|
|
|
2.4
|
%
|
Non-operating pension
and OPEB items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,028)
|
|
|
(1,028)
|
|
|
(0.1)
|
%
|
Adjusted
EBITDA
|
$
|
130,218
|
|
|
$
|
63,936
|
|
|
$
|
43,120
|
|
|
$
|
237,274
|
|
|
$
|
306
|
|
|
$
|
(28,197)
|
|
|
$
|
209,383
|
|
|
27.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30, 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Albemarle
Corporation
|
$
|
66,166
|
|
|
$
|
41,621
|
|
|
$
|
55,981
|
|
|
$
|
163,768
|
|
|
$
|
3,806
|
|
|
$
|
(39,354)
|
|
|
$
|
128,220
|
|
|
19.6
|
%
|
Depreciation and
amortization
|
25,553
|
|
|
10,186
|
|
|
8,979
|
|
|
44,718
|
|
|
1,664
|
|
|
1,592
|
|
|
47,974
|
|
|
7.3
|
%
|
Non-recurring and
other unusual items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,211
|
|
|
7,211
|
|
|
1.1
|
%
|
Interest and
financing expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,946
|
|
|
15,946
|
|
|
2.4
|
%
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,394
|
|
|
12,394
|
|
|
1.9
|
%
|
Income from
discontinued operations (net of tax)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23,185)
|
|
|
(23,185)
|
|
|
(3.5)
|
%
|
Non-operating pension
and OPEB items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(231)
|
|
|
(231)
|
|
|
—
|
%
|
Adjusted
EBITDA
|
$
|
91,719
|
|
|
$
|
51,807
|
|
|
$
|
64,960
|
|
|
$
|
208,486
|
|
|
$
|
5,470
|
|
|
$
|
(25,627)
|
|
|
$
|
188,329
|
|
|
28.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Albemarle
Corporation
|
$
|
292,655
|
|
|
$
|
164,193
|
|
|
$
|
115,329
|
|
|
$
|
572,177
|
|
|
$
|
1,622
|
|
|
$
|
(300,583)
|
|
|
$
|
273,216
|
|
|
12.3
|
%
|
Depreciation and
amortization
|
74,157
|
|
|
30,306
|
|
|
28,698
|
|
|
133,161
|
|
|
6,284
|
|
|
4,642
|
|
|
144,087
|
|
|
6.5
|
%
|
Non-recurring and
other unusual items
(excluding items associated with interest
expense)
|
15,977
|
|
|
—
|
|
|
(1,250)
|
|
|
14,727
|
|
|
—
|
|
|
58,323
|
|
|
73,050
|
|
|
3.3
|
%
|
Interest and
financing expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
98,895
|
|
|
98,895
|
|
|
4.5
|
%
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53,596
|
|
|
53,596
|
|
|
2.4
|
%
|
Non-operating pension
and OPEB items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,144)
|
|
|
(3,144)
|
|
|
(0.1)
|
%
|
Adjusted
EBITDA
|
$
|
382,789
|
|
|
$
|
194,499
|
|
|
$
|
142,777
|
|
|
$
|
720,065
|
|
|
$
|
7,906
|
|
|
$
|
(88,271)
|
|
|
$
|
639,700
|
|
|
28.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Albemarle
Corporation
|
$
|
186,373
|
|
|
$
|
150,221
|
|
|
$
|
154,767
|
|
|
$
|
491,361
|
|
|
$
|
133,012
|
|
|
$
|
(582,788)
|
|
|
$
|
41,585
|
|
|
2.1
|
%
|
Depreciation and
amortization
|
74,488
|
|
|
29,756
|
|
|
26,853
|
|
|
131,097
|
|
|
5,629
|
|
|
4,562
|
|
|
141,288
|
|
|
7.1
|
%
|
Non-recurring and
other unusual items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(123,831)
|
|
|
46,332
|
|
|
(77,499)
|
|
|
(3.9)
|
%
|
Interest and
financing expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46,860
|
|
|
46,860
|
|
|
2.4
|
%
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
61,535
|
|
|
61,535
|
|
|
3.1
|
%
|
Loss from
discontinued operations (net of
tax)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
357,843
|
|
|
357,843
|
|
|
18.1
|
%
|
Non-operating pension
and OPEB items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(779)
|
|
|
(779)
|
|
|
—
|
%
|
Adjusted
EBITDA
|
$
|
260,861
|
|
|
$
|
179,977
|
|
|
$
|
181,620
|
|
|
$
|
622,458
|
|
|
$
|
14,810
|
|
|
$
|
(66,435)
|
|
|
$
|
570,833
|
|
|
28.8
|
%
|
|
Lithium
|
|
PCS
|
|
Total
Lithium
and
Advanced
Materials
|
Three months ended
September 30, 2017:
|
|
|
|
|
|
Net income
attributable to Albemarle Corporation
|
$
|
89,745
|
|
|
$
|
13,454
|
|
|
$
|
103,199
|
|
Depreciation and
amortization
|
22,316
|
|
|
3,820
|
|
|
26,136
|
|
Non-recurring and
other unusual items
|
883
|
|
|
—
|
|
|
883
|
|
Adjusted
EBITDA
|
$
|
112,944
|
|
|
$
|
17,274
|
|
|
$
|
130,218
|
|
|
|
|
|
|
|
Three months ended
September 30, 2016:
|
|
|
|
|
|
Net income
attributable to Albemarle Corporation
|
$
|
46,848
|
|
|
$
|
19,318
|
|
|
$
|
66,166
|
|
Depreciation and
amortization
|
21,789
|
|
|
3,764
|
|
|
25,553
|
|
Adjusted
EBITDA
|
$
|
68,637
|
|
|
$
|
23,082
|
|
|
$
|
91,719
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2017:
|
|
|
|
|
|
Net income
attributable to Albemarle Corporation
|
$
|
249,178
|
|
|
$
|
43,477
|
|
|
$
|
292,655
|
|
Depreciation and
amortization
|
62,841
|
|
|
11,316
|
|
|
74,157
|
|
Non-recurring and
other unusual items
|
15,977
|
|
|
—
|
|
|
15,977
|
|
Adjusted
EBITDA
|
$
|
327,996
|
|
|
$
|
54,793
|
|
|
$
|
382,789
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2016:
|
|
|
|
|
|
Net income
attributable to Albemarle Corporation
|
$
|
133,323
|
|
|
$
|
53,050
|
|
|
$
|
186,373
|
|
Depreciation and
amortization
|
63,294
|
|
|
11,194
|
|
|
74,488
|
|
Adjusted
EBITDA
|
$
|
196,617
|
|
|
$
|
64,244
|
|
|
$
|
260,861
|
|
See below for a reconciliation of the adjusted effective income
tax rate, the non-GAAP financial measure, to the effective income
tax rate, the most directly comparable financial measure calculated
and reporting in accordance with GAAP.
|
Income from
continuing
operations before
income taxes and
equity in net income
of unconsolidated
investments
|
|
Income tax
expense
|
|
Effective income
tax
rate
|
Three months ended
September 30, 2017:
|
|
|
|
|
|
As
reported
|
$
|
129,644
|
|
|
$
|
18,495
|
|
|
14.3
|
%
|
Non-recurring, other
unusual and non-operating pension and OPEB
items from continuing operations
|
6,531
|
|
|
4,650
|
|
|
|
As
adjusted
|
$
|
136,175
|
|
|
$
|
23,145
|
|
|
17.0
|
%
|
|
|
|
|
|
|
Three months ended
September 30, 2016:
|
|
|
|
|
|
As
reported
|
$
|
111,953
|
|
|
$
|
12,394
|
|
|
11.1
|
%
|
Non-recurring, other
unusual and non-operating pension and OPEB
items from continuing operations
|
6,980
|
|
|
9,304
|
|
|
|
As
adjusted
|
$
|
118,933
|
|
|
$
|
21,698
|
|
|
18.2
|
%
|
|
|
|
|
|
|
Nine months ended
September 30, 2017:
|
|
|
|
|
|
As
reported
|
$
|
304,872
|
|
|
$
|
53,596
|
|
|
17.6
|
%
|
Non-recurring, other
unusual and non-operating pension and OPEB
items from continuing operations
|
122,707
|
|
|
29,882
|
|
|
|
As
adjusted
|
$
|
427,579
|
|
|
$
|
83,478
|
|
|
19.5
|
%
|
|
|
|
|
|
|
Nine months ended
September 30, 2016:
|
|
|
|
|
|
As
reported
|
$
|
445,079
|
|
|
$
|
61,535
|
|
|
13.8
|
%
|
Non-recurring, other
unusual and non-operating pension and OPEB
items from continuing operations
|
(78,278)
|
|
|
6,200
|
|
|
|
As
adjusted
|
$
|
366,801
|
|
|
$
|
67,735
|
|
|
18.5
|
%
|
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SOURCE Albemarle Corporation