CHARLOTTE, N.C., Aug. 4, 2021 /PRNewswire/ -- Albemarle
Corporation (NYSE: ALB) today announced its results for the
second quarter ended June 30,
2021.
Second Quarter 2021 Highlights
(Unless otherwise
stated, all percent changes are based on year-over-year
comparisons)
- 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
- Full year 2021 outlook revised to reflect better than expected
Lithium performance, lower interest expense and tax rates, offset
by higher Bromine raw material costs and supply chain disruptions;
guidance updated to reflect sale of FCS
- Completed the sale of FCS on June 1,
2021, in a cash and stock transaction valued at ~$570 million
- La Negra III/IV commissioning stage in process, commercial
production expected to begin in first half of 2022
"Albemarle delivered another
strong quarter, generating $195
million in adjusted EBITDA, driven by continued strength in
demand for our Lithium and Bromine products," said Albemarle CEO
Kent Masters. "We are focused on
executing our accelerated growth strategy. We are in the final
stages of two lithium projects which are expected to double our
nameplate capacity to about 175,000 metric tons, including La Negra
III/IV where construction is complete and commissioning is
progressing. We are firmly focused on advancing all our lithium
projects to meet customer demand and accelerate profitable
growth."
Outlook
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. Pro
forma revised guidance has been updated to reflect the sale of
Albemarle's Fine Chemistry
Services (FCS) business to W. R. Grace, which closed on
June 1, 2021.
|
Revised
|
|
FCS
Adjustment
|
|
Pro Forma
Revised
|
|
FY 2021
Guidance
|
|
(Jun 1 - Dec 31,
2021)
|
|
FY 2021
Guidance
|
Net sales
|
$3.3 - $3.4
billion
|
|
$95 - $105
million
|
|
$3.2 - $3.3
billion
|
Adjusted
EBITDA
|
$810 - $860
million
|
|
$35 - $45
million
|
|
$775 - $815
million
|
Adjusted EBITDA
Margin
|
24% - 25%
|
|
|
|
24% - 25%
|
Adjusted Diluted
EPS
|
$3.60 -
$4.00
|
|
$0.25 -
$0.30
|
|
$3.35 -
$3.70
|
Net Cash from
Operations
|
$590 - $690
million
|
|
$40 - $45
million
|
|
$550 - $650
million
|
Capital
Expenditures
|
$850 - $950
million
|
|
$4 - $8
million
|
|
$850 - $950
million
|
COVID-19 Response
Albemarle's cross-functional
Global Response Team continues to meet regularly to address
employee health and safety and operational challenges. The
company's priority is always the health and well-being of its
employees, customers, and communities. The company continues to
focus on building in the flexibility needed to adjust for regional
differences and changing conditions.
Second-Quarter Results
In millions,
except per share amounts
|
Q2
2021
|
|
Q2
2020
|
|
$
Change
|
|
%
Change
|
Net sales
|
$
|
773.9
|
|
|
$
|
764.0
|
|
|
$
|
9.8
|
|
|
1.3
|
%
|
Net income
attributable to Albemarle Corporation
|
$
|
424.6
|
|
|
$
|
85.6
|
|
|
$
|
339.0
|
|
|
395.9
|
%
|
Adjusted
EBITDA(a)
|
$
|
194.6
|
|
|
$
|
185.2
|
|
|
$
|
9.4
|
|
|
5.1
|
%
|
Diluted earnings per
share
|
$
|
3.62
|
|
|
$
|
0.80
|
|
|
$
|
2.82
|
|
|
352.5
|
%
|
Non-operating pension and OPEB items(a)
|
(0.04)
|
|
|
(0.02)
|
|
|
|
|
|
Non-recurring and other unusual items(a)
|
(2.69)
|
|
|
0.07
|
|
|
|
|
|
Adjusted diluted
earnings per share(b)
|
$
|
0.89
|
|
|
$
|
0.86
|
|
|
$
|
0.03
|
|
|
3.5
|
%
|
|
|
(a)
|
See Non-GAAP
Reconciliations for further details.
|
(b)
|
Totals may not add
due to rounding.
|
Net sales of $773.9 million
increased by $9.8 million compared to
the prior year quarter, primarily driven by an increase in sales
from the company's Lithium and Bromine business segments. Excluding
the FCS business, net sales for the quarter increased 5%
year-over-year.
Adjusted EBITDA of $194.6 million
increased by $9.4 million from the
prior year quarter based on higher sales and operating margins,
partially offset by higher corporate expense primarily related to
higher incentive compensation and foreign exchange. Excluding FCS,
adjusted EBITDA was 13% higher when compared to the second quarter
of 2020. Net income attributable to Albemarle of $424.6
million increased by $339.0
million, benefiting from a $429.4
million ($331.6 million after
taxes) gain on the sale of the company's FCS
business.
The effective income tax rate for the second quarter of 2021 was
20.0% compared to 17.5% in the same period of 2020. The difference
is largely due to tax expense recorded in the second quarter of
2021 for the gain on the sale of the FCS business. On an adjusted
basis, the effective income tax rates were 17.5% and 18.9% for the
second quarter of 2021 and 2020, respectively.
Business Segment Results
Lithium
In
millions
|
Q2
2021
|
|
Q2
2020
|
|
$
Change
|
|
%
Change
|
Net Sales
|
$
|
320.3
|
|
|
$
|
283.7
|
|
|
$
|
36.6
|
|
|
12.9
|
%
|
Adjusted
EBITDA
|
$
|
109.4
|
|
|
$
|
94.5
|
|
|
$
|
14.9
|
|
|
15.8
|
%
|
Lithium net sales of $320.3
million increased $36.6
million (+13%) primarily driven by higher volumes (+17%)
primarily related to accelerated orders under long-term agreements.
Pricing in the quarter was slightly lower year over year (-4%) due
to lower average pricing for carbonate and technical grade
products. Adjusted EBITDA of $109.4
million increased $14.9
million primarily due to increased net sales and the impact
of higher spodumene volumes at the Talison joint venture.
Current Trends: Full-year 2021 volume growth is
expected to be in the mid-teens year-over-year due to North
American plant restarts, productivity improvements, and tolling.
Average realized pricing is expected to increase sequentially but
remain flat compared to 2020. Full-year 2021 adjusted EBITDA is
expected to grow between 10% and 15% year over year. Full-year 2021
average margin is expected to remain below 35% due to higher
lithium costs related to project start-ups and tolling costs
partially offset by efficiency improvements.
Albemarle's Wave 2 growth
projects continue to progress. La Negra III/IV is in the
commissioning phase and Kemerton I remains on track for
construction completion later this year. To mitigate risks related
to labor shortages and COVID-19 travel restrictions in Western Australia, the company prioritized
completion of Kemerton I, with Kemerton II construction completion
now expected by the end of the first quarter 2022. Kemerton I and
II are expected to reach commercial production in 2022 following an
approximately six month commissioning and qualification
period.
Bromine Specialties
In
millions
|
Q2
2021
|
|
Q2
2020
|
|
$
Change
|
|
%
Change
|
Net Sales
|
$
|
279.7
|
|
|
$
|
232.8
|
|
|
$
|
47.0
|
|
|
20.2
|
%
|
Adjusted
EBITDA
|
$
|
92.6
|
|
|
$
|
73.0
|
|
|
$
|
19.6
|
|
|
26.8
|
%
|
Bromine net sales of $279.7
million increased $47.0
million (+20%) with improved pricing (+9%) and volumes
(+11%) driven by higher demand across the portfolio. Adjusted
EBITDA of $92.6 million increased
$19.6 million due to higher net
sales. Cost savings initiatives and higher pricing helped offset
raw materials cost increases.
Current Trends: The company expects full-year 2021
adjusted EBITDA growth in the mid-single digits year-over-year,
below previous outlook primarily due to a force majeure declaration
by our chlorine supplier in the U.S. The company continues to see
strength in certain end markets, including electronics, and
building and construction. Volumes are also expected to be lower in
the second half due to inventory drawdown and reduced production
related to the U.S. Gulf Coast winter storms in the first quarter
of 2021. Cost savings and higher pricing partially offset inflation
in raw materials and freight.
Catalysts
In
millions
|
Q2
2021
|
|
Q2
2020
|
|
$
Change
|
|
%
Change
|
Net Sales
|
$
|
148.3
|
|
|
$
|
197.1
|
|
|
$
|
(48.7)
|
|
|
(24.7)
|
%
|
Adjusted
EBITDA
|
$
|
21.2
|
|
|
$
|
22.8
|
|
|
$
|
(1.6)
|
|
|
(7.1)
|
%
|
Catalysts net sales of $148.3
million decreased $48.7
million (-25%) compared to the previous year, primarily due
to lower volumes (-25%) while pricing was flat. Clean Fuels
Technologies (CFT) volumes decreased due to timing of shipments.
Fluid Catalytic Cracking (FCC) volumes were down slightly versus
prior year, as a change in order patterns from a large North
American customer offset generally higher FCC demand.
Performance Catalyst Solutions (PCS) results improved due to
product mix. Adjusted EBITDA of $21.2
million declined $1.6 million
mostly due to lower sales. Also, second quarter 2020 results were
understated by $12.0 million due to
an out-of-period correction to cost of goods sold for inventory
values.
Current Trends: The company continues to expect
full-year 2021 adjusted EBITDA to decline by between 30% and
40%. Market conditions are improving, but results are
expected to be down from prior year primarily due to the impact of
the U.S. Gulf Coast winter storm, product mix, and the previously
disclosed change in order patterns from a large North American
customer.
All Other
In
millions
|
Q2
2021
|
|
Q2
2020
|
|
$
Change
|
|
%
Change
|
Net Sales
|
$
|
25.5
|
|
|
$
|
50.5
|
|
|
$
|
(25.0)
|
|
|
(49.6)
|
%
|
Adjusted
EBITDA
|
$
|
8.4
|
|
|
$
|
18.6
|
|
|
$
|
(10.2)
|
|
|
(54.9)
|
%
|
Other operations represents the company's recently sold FCS
business. FCS net sales of $25.5
million declined $25.0 million
and adjusted EBITDA of $8.4 million
declined $10.2 million.
Second-quarter 2021 results include only two months of performance
following the sale of FCS on June 1,
2021. Albemarle recorded a
gain of $429.4 million ($331.6 million after taxes) related to the sale
of the FCS business.
Balance Sheet and Liquidity
As of June 30, 2021, Albemarle had estimated liquidity of
approximately $2.2 billion, including
$823.6 million of cash and
equivalents, the full $1.0 billion
available under the company's revolver, $270.0 million remaining under its delayed draw
term loan and $132.0 million on other
available credit lines. Total debt was $2.0
billion, representing net debt to adjusted EBITDA of
approximately 1.5 times.
Cash Flow and Capital Deployment
Cash from operations for the six months ended June 30, 2021, of $385.9
million increased $177.9
million versus the prior year driven by working capital
inflows and higher revenues in the company's Lithium and Bromine
segments. Capital expenditures of $396.9
million decreased by approximately $22.0 million versus the prior year as the
company nears completion of its Wave 2 Lithium expansion
projects.
Albemarle's primary capital
allocation priorities are to grow profitably, fund its dividend,
and maintain its financial flexibility and our Investment Grade
credit rating.
In May, the board declared a quarterly dividend of $0.39 per share, an increase over the quarterly
dividend paid in 2020. This is Albemarle's 27th consecutive year of dividend
increases. The share repurchase authorization remains in place;
however, the company has no near-term plans to execute share
buybacks.
Earnings Call
Date:
|
Thursday, August 5,
2021
|
Time:
|
9:00 AM Eastern
time
|
Dial-in
(U.S.):
|
844-347-1034
|
Dial-in
(International):
|
209-905-5910
|
Passcode:
|
6747789
|
The company's earnings presentation and supporting material are
available on Albemarle's website
at https://investors.albemarle.com.
About Albemarle
Albemarle Corporation (NYSE: ALB) is a global specialty
chemicals company with leading positions in lithium, bromine and
refining 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, information related to the timing of active and
proposed projects, product development, production capacity,
committed volumes, market trends, pricing, financial flexibility,
expected growth, anticipated return on opportunities, earnings and
demand for our products, input costs, productivity improvements,
surcharges, tax rates, stock repurchases, dividends, cash flow
generation, costs and cost synergies, capital projects, future
acquisition and divestiture transactions, expected benefits from
proposed transactions, 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 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 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 or the end-user markets in which our
products are sold; limitations or prohibitions on the manufacture
and sale of our products; availability of raw materials; increases
in the cost of raw materials and energy, and our ability to pass
through such increases to our customers; 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 actions, proceedings, claims or
litigation; the occurrence of cyber-security breaches, terrorist
attacks, industrial accidents, natural disasters or climate change;
hazards associated with chemicals manufacturing; the inability to
maintain current levels of 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 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 that may impact our ability
to raise capital or increase our cost of funds, impact the
performance of our pension fund investments and increase our
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 we may make in the
future; the ability to successfully execute, operate and integrate
acquisitions and divestitures; uncertainties as to the duration and
impact of the coronavirus (COVID-19) pandemic; 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 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. 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
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
sales
|
$
|
773,896
|
|
|
$
|
764,049
|
|
|
$
|
1,603,187
|
|
|
$
|
1,502,894
|
|
Cost of goods
sold
|
525,479
|
|
|
530,690
|
|
|
1,091,083
|
|
|
1,027,517
|
|
Gross
profit
|
248,417
|
|
|
233,359
|
|
|
512,104
|
|
|
475,377
|
|
Selling, general and
administrative expenses
|
121,516
|
|
|
106,949
|
|
|
214,703
|
|
|
208,826
|
|
Research and
development expenses
|
13,976
|
|
|
14,210
|
|
|
28,612
|
|
|
30,307
|
|
Gain on sale of
business
|
(429,408)
|
|
|
—
|
|
|
(429,408)
|
|
|
—
|
|
Operating
profit
|
542,333
|
|
|
112,200
|
|
|
698,197
|
|
|
236,244
|
|
Interest and
financing expenses
|
(7,152)
|
|
|
(17,852)
|
|
|
(51,034)
|
|
|
(34,737)
|
|
Other income
(expense), net
|
14
|
|
|
(6,273)
|
|
|
11,326
|
|
|
2,041
|
|
Income before income
taxes and equity in net income of unconsolidated
investments
|
535,195
|
|
|
88,075
|
|
|
658,489
|
|
|
203,548
|
|
Income tax
expense
|
106,985
|
|
|
15,431
|
|
|
129,092
|
|
|
33,873
|
|
Income before equity
in net income of unconsolidated investments
|
428,210
|
|
|
72,644
|
|
|
529,397
|
|
|
169,675
|
|
Equity in net income
of unconsolidated investments (net of tax)
|
17,998
|
|
|
31,114
|
|
|
34,509
|
|
|
57,718
|
|
Net income
|
446,208
|
|
|
103,758
|
|
|
563,906
|
|
|
227,393
|
|
Net income
attributable to noncontrolling interests
|
(21,608)
|
|
|
(18,134)
|
|
|
(43,629)
|
|
|
(34,565)
|
|
Net income
attributable to Albemarle Corporation
|
$
|
424,600
|
|
|
$
|
85,624
|
|
|
$
|
520,277
|
|
|
$
|
192,828
|
|
Basic earnings per
share
|
$
|
3.63
|
|
|
$
|
0.81
|
|
|
$
|
4.54
|
|
|
$
|
1.81
|
|
Diluted earnings per
share
|
$
|
3.62
|
|
|
$
|
0.80
|
|
|
$
|
4.51
|
|
|
$
|
1.81
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding – basic
|
116,809
|
|
|
106,329
|
|
|
114,700
|
|
|
106,278
|
|
Weighted-average
common shares outstanding – diluted
|
117,436
|
|
|
106,535
|
|
|
115,383
|
|
|
106,524
|
|
Albemarle Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(In Thousands) (Unaudited)
|
June
30,
|
|
December
31,
|
|
2021
|
|
2020
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
823,572
|
|
|
$
|
746,724
|
|
Trade accounts
receivable
|
455,222
|
|
|
530,838
|
|
Other accounts
receivable
|
58,256
|
|
|
61,958
|
|
Inventories
|
732,563
|
|
|
750,237
|
|
Other current
assets
|
81,741
|
|
|
116,427
|
|
Total current
assets
|
2,151,354
|
|
|
2,206,184
|
|
Property, plant and
equipment
|
7,596,684
|
|
|
7,427,641
|
|
Less accumulated
depreciation and amortization
|
2,086,085
|
|
|
2,073,016
|
|
Net property, plant
and equipment
|
5,510,599
|
|
|
5,354,625
|
|
Investments
|
907,080
|
|
|
656,244
|
|
Other
assets
|
256,081
|
|
|
219,268
|
|
Goodwill
|
1,640,720
|
|
|
1,665,520
|
|
Other intangibles,
net of amortization
|
331,092
|
|
|
349,105
|
|
Total
assets
|
$
|
10,796,926
|
|
|
$
|
10,450,946
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
535,153
|
|
|
$
|
483,221
|
|
Accrued
expenses
|
317,954
|
|
|
440,763
|
|
Current portion of
long-term debt
|
623
|
|
|
804,677
|
|
Dividends
payable
|
45,428
|
|
|
40,937
|
|
Income taxes
payable
|
85,770
|
|
|
32,251
|
|
Total current
liabilities
|
984,928
|
|
|
1,801,849
|
|
Long-term
debt
|
2,043,794
|
|
|
2,767,381
|
|
Postretirement
benefits
|
47,371
|
|
|
48,075
|
|
Pension
benefits
|
309,712
|
|
|
340,818
|
|
Other noncurrent
liabilities
|
616,912
|
|
|
629,377
|
|
Deferred income
taxes
|
428,438
|
|
|
394,852
|
|
Commitments and
contingencies
|
|
|
|
Equity:
|
|
|
|
Albemarle Corporation
shareholders' equity:
|
|
|
|
Common
stock
|
1,169
|
|
|
1,069
|
|
Additional paid-in
capital
|
2,907,981
|
|
|
1,438,038
|
|
Accumulated other
comprehensive loss
|
(328,001)
|
|
|
(326,132)
|
|
Retained
earnings
|
3,584,400
|
|
|
3,155,252
|
|
Total Albemarle
Corporation shareholders' equity
|
6,165,549
|
|
|
4,268,227
|
|
Noncontrolling
interests
|
200,222
|
|
|
200,367
|
|
Total
equity
|
6,365,771
|
|
|
4,468,594
|
|
Total liabilities and
equity
|
$
|
10,796,926
|
|
|
$
|
10,450,946
|
|
Albemarle Corporation and Subsidiaries
Selected Consolidated Cash Flow Data
(In Thousands) (Unaudited)
|
Six Months
Ended
June
30,
|
|
2021
|
|
2020
|
Cash and cash
equivalents at beginning of year
|
$
|
746,724
|
|
|
$
|
613,110
|
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
563,906
|
|
|
227,393
|
|
Adjustments to
reconcile net income to cash flows from operating
activities:
|
|
|
|
Depreciation and
amortization
|
123,683
|
|
|
111,535
|
|
Gain on sale of
business
|
(429,408)
|
|
|
—
|
|
Stock-based
compensation and other
|
8,425
|
|
|
9,765
|
|
Equity in net income
of unconsolidated investments (net of tax)
|
(34,509)
|
|
|
(57,718)
|
|
Dividends received
from unconsolidated investments and nonmarketable
securities
|
27,420
|
|
|
12,984
|
|
Pension and
postretirement benefit
|
(8,465)
|
|
|
(3,312)
|
|
Pension and
postretirement contributions
|
(20,266)
|
|
|
(6,692)
|
|
Unrealized gain on
investments in marketable securities
|
(2,384)
|
|
|
(1,278)
|
|
Loss on early
extinguishment of debt
|
28,955
|
|
|
—
|
|
Deferred income
taxes
|
27,708
|
|
|
8,990
|
|
Working capital
changes
|
7,942
|
|
|
(156,579)
|
|
Non-cash transfer of
40% value of construction in progress of Kemerton plant to
MRL
|
96,185
|
|
|
87,750
|
|
Other, net
|
(3,339)
|
|
|
(24,921)
|
|
Net cash provided by
operating activities
|
385,853
|
|
|
207,917
|
|
Cash flows from
investing activities:
|
|
|
|
Acquisitions, net of
cash acquired
|
—
|
|
|
(22,572)
|
|
Capital
expenditures
|
(396,915)
|
|
|
(418,991)
|
|
Cash proceeds from
divestitures, net
|
290,467
|
|
|
—
|
|
Sales of marketable
securities, net
|
4,553
|
|
|
1,496
|
|
Investments in equity
and other corporate investments
|
(286)
|
|
|
(486)
|
|
Net cash used in
investing activities
|
(102,181)
|
|
|
(440,553)
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from issuance
of common stock
|
1,453,888
|
|
|
—
|
|
Repayments of
long-term debt and credit agreements
|
(1,173,823)
|
|
|
—
|
|
Proceeds from
borrowings of credit agreements
|
—
|
|
|
452,163
|
|
Other debt repayments,
net
|
(325,316)
|
|
|
12,956
|
|
Fees related to early
extinguishment of debt
|
(24,877)
|
|
|
—
|
|
Dividends paid to
shareholders
|
(86,637)
|
|
|
(79,909)
|
|
Dividends paid to
noncontrolling interests
|
(43,698)
|
|
|
(14,286)
|
|
Proceeds from exercise
of stock options
|
14,335
|
|
|
10,809
|
|
Withholding taxes paid
on stock-based compensation award distributions
|
(7,047)
|
|
|
(4,019)
|
|
Other
|
(1,359)
|
|
|
(2,669)
|
|
Net cash (used in)
provided by financing activities
|
(194,534)
|
|
|
375,045
|
|
Net effect of foreign
exchange on cash and cash equivalents
|
(12,290)
|
|
|
(18,823)
|
|
Increase in cash and
cash equivalents
|
76,848
|
|
|
123,586
|
|
Cash and cash
equivalents at end of period
|
$
|
823,572
|
|
|
$
|
736,696
|
|
Albemarle Corporation and Subsidiaries
Consolidated Summary of Segment Results
(In Thousands) (Unaudited)
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
sales:
|
|
|
|
|
|
|
|
Lithium
|
$
|
320,334
|
|
|
$
|
283,722
|
|
|
$
|
599,310
|
|
|
$
|
520,540
|
|
Bromine
Specialties
|
279,748
|
|
|
232,779
|
|
|
560,195
|
|
|
464,371
|
|
Catalysts
|
148,344
|
|
|
197,053
|
|
|
368,587
|
|
|
404,260
|
|
All Other
|
25,470
|
|
|
50,495
|
|
|
75,095
|
|
|
113,723
|
|
Total net
sales
|
$
|
773,896
|
|
|
$
|
764,049
|
|
|
$
|
1,603,187
|
|
|
$
|
1,502,894
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
Lithium
|
$
|
109,441
|
|
|
$
|
94,536
|
|
|
$
|
215,877
|
|
|
$
|
173,173
|
|
Bromine
Specialties
|
92,646
|
|
|
73,041
|
|
|
187,286
|
|
|
156,303
|
|
Catalysts
|
21,164
|
|
|
22,777
|
|
|
46,591
|
|
|
70,247
|
|
All Other
|
8,379
|
|
|
18,598
|
|
|
29,858
|
|
|
41,422
|
|
Corporate
|
(37,002)
|
|
|
(23,759)
|
|
|
(54,930)
|
|
|
(59,587)
|
|
Total adjusted
EBITDA
|
$
|
194,628
|
|
|
$
|
185,193
|
|
|
$
|
424,682
|
|
|
$
|
381,558
|
|
See accompanying non-GAAP reconciliations below.
Additional Information
It should be noted that adjusted net income attributable to
Albemarle Corporation, adjusted diluted earnings per share,
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") 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.
A description of other non-GAAP financial measures that
Albemarle uses to evaluate its
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 on the following pages of this press release, which is
also is available on Albemarle's
website at https://investors.albemarle.com. 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
(Unaudited)
See below for a reconciliation of adjusted net income
attributable to Albemarle Corporation, 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 other post-employment
benefit (OPEB) items as listed below. The non-recurring and unusual
items may include acquisition and integration related costs, gains
or losses on sales of businesses, restructuring charges, facility
divestiture charges and other significant non-recurring items.
EBITDA is defined as earnings before interest and financing
expenses, income taxe expense, and depreciation and amortization.
Adjusted EBITDA is defined as EBITDA plus or minus the
non-recurring, other unusual and non-operating pension and OPEB
items as listed below.
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
In thousands, except
percentages and per share amounts
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net income
attributable to Albemarle Corporation
|
$
|
424,600
|
|
|
$
|
85,624
|
|
|
$
|
520,277
|
|
|
$
|
192,828
|
|
Add back:
|
|
|
|
|
|
|
|
Non-operating pension
and OPEB items (net of tax)
|
(4,273)
|
|
|
(2,299)
|
|
|
(8,540)
|
|
|
(4,610)
|
|
Non-recurring and
other unusual items (net of tax)
|
(315,996)
|
|
|
7,907
|
|
|
(283,235)
|
|
|
9,400
|
|
Adjusted net income
attributable to Albemarle Corporation
|
$
|
104,331
|
|
|
$
|
91,232
|
|
|
$
|
228,502
|
|
|
$
|
197,618
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
earnings per share
|
$
|
0.89
|
|
|
$
|
0.86
|
|
|
$
|
1.98
|
|
|
$
|
1.86
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding – diluted
|
117,436
|
|
|
106,535
|
|
|
115,383
|
|
|
106,524
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Albemarle Corporation
|
$
|
424,600
|
|
|
$
|
85,624
|
|
|
$
|
520,277
|
|
|
$
|
192,828
|
|
Add back:
|
|
|
|
|
|
|
|
Interest and financing
expenses
|
7,152
|
|
|
17,852
|
|
|
51,034
|
|
|
34,737
|
|
Income tax
expense
|
106,985
|
|
|
15,431
|
|
|
129,092
|
|
|
33,873
|
|
Depreciation and
amortization
|
61,423
|
|
|
57,841
|
|
|
123,683
|
|
|
111,535
|
|
EBITDA
|
600,160
|
|
|
176,748
|
|
|
824,086
|
|
|
372,973
|
|
Non-operating pension
and OPEB items
|
(5,471)
|
|
|
(2,895)
|
|
|
(10,936)
|
|
|
(5,803)
|
|
Non-recurring and
other unusual items
|
(400,061)
|
|
|
11,340
|
|
|
(388,468)
|
|
|
14,388
|
|
Adjusted
EBITDA
|
$
|
194,628
|
|
|
$
|
185,193
|
|
|
$
|
424,682
|
|
|
$
|
381,558
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
773,896
|
|
|
$
|
764,049
|
|
|
$
|
1,603,187
|
|
|
$
|
1,502,894
|
|
EBITDA
margin
|
77.6
|
%
|
|
23.1
|
%
|
|
51.4
|
%
|
|
24.8
|
%
|
Adjusted EBITDA
margin
|
25.1
|
%
|
|
24.2
|
%
|
|
26.5
|
%
|
|
25.4
|
%
|
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 reported in accordance with GAAP (in
thousands, except percentages).
|
Lithium
|
|
Bromine
Specialties
|
|
Catalysts
|
|
Reportable
Segments
Total
|
|
All
Other
|
|
Corporate
|
|
Consolidated
Total
|
|
% of
Net
Sales
|
Three months ended
June 30, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Albemarle Corporation
|
$
|
74,593
|
|
|
$
|
80,148
|
|
|
$
|
8,446
|
|
|
$
|
163,187
|
|
|
$
|
7,972
|
|
|
$
|
253,441
|
|
|
$
|
424,600
|
|
|
54.9
|
%
|
Depreciation and
amortization
|
33,497
|
|
|
12,498
|
|
|
12,718
|
|
|
58,713
|
|
|
407
|
|
|
2,303
|
|
|
61,423
|
|
|
7.9
|
%
|
Non-recurring and
other unusual items
|
1,351
|
|
|
—
|
|
|
—
|
|
|
1,351
|
|
|
—
|
|
|
(401,412)
|
|
|
(400,061)
|
|
|
(51.7)
|
%
|
Interest and financing
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,152
|
|
|
7,152
|
|
|
0.9
|
%
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
106,985
|
|
|
106,985
|
|
|
13.8
|
%
|
Non-operating pension
and OPEB items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,471)
|
|
|
(5,471)
|
|
|
(0.7)
|
%
|
Adjusted
EBITDA
|
$
|
109,441
|
|
|
$
|
92,646
|
|
|
$
|
21,164
|
|
|
$
|
223,251
|
|
|
$
|
8,379
|
|
|
$
|
(37,002)
|
|
|
$
|
194,628
|
|
|
25.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Albemarle Corporation
|
$
|
66,038
|
|
|
$
|
60,692
|
|
|
$
|
10,702
|
|
|
$
|
137,432
|
|
|
$
|
16,425
|
|
|
$
|
(68,233)
|
|
|
$
|
85,624
|
|
|
11.2
|
%
|
Depreciation and
amortization
|
28,498
|
|
|
12,349
|
|
|
12,075
|
|
|
52,922
|
|
|
2,173
|
|
|
2,746
|
|
|
57,841
|
|
|
7.6
|
%
|
Non-recurring and
other unusual items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,340
|
|
|
11,340
|
|
|
1.5
|
%
|
Interest and financing
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,852
|
|
|
17,852
|
|
|
2.3
|
%
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,431
|
|
|
15,431
|
|
|
2.1
|
%
|
Non-operating pension
and OPEB items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,895)
|
|
|
(2,895)
|
|
|
(0.4)
|
%
|
Adjusted
EBITDA
|
$
|
94,536
|
|
|
$
|
73,041
|
|
|
$
|
22,777
|
|
|
$
|
190,354
|
|
|
$
|
18,598
|
|
|
$
|
(23,759)
|
|
|
$
|
185,193
|
|
|
24.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Albemarle Corporation
|
$
|
144,965
|
|
|
$
|
162,261
|
|
|
$
|
21,362
|
|
|
$
|
328,588
|
|
|
$
|
27,988
|
|
|
$
|
163,701
|
|
|
$
|
520,277
|
|
|
32.5
|
%
|
Depreciation and
amortization
|
65,303
|
|
|
25,025
|
|
|
25,229
|
|
|
115,557
|
|
|
1,870
|
|
|
6,256
|
|
|
123,683
|
|
|
7.7
|
%
|
Non-recurring and
other unusual items
|
5,609
|
|
|
—
|
|
|
—
|
|
|
5,609
|
|
|
—
|
|
|
(394,077)
|
|
|
(388,468)
|
|
|
(24.2)
|
%
|
Interest and financing
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
51,034
|
|
|
51,034
|
|
|
3.2
|
%
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
129,092
|
|
|
129,092
|
|
|
8.1
|
%
|
Non-operating pension
and OPEB items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,936)
|
|
|
(10,936)
|
|
|
(0.7)
|
%
|
Adjusted
EBITDA
|
$
|
215,877
|
|
|
$
|
187,286
|
|
|
$
|
46,591
|
|
|
$
|
449,754
|
|
|
$
|
29,858
|
|
|
$
|
(54,930)
|
|
|
$
|
424,682
|
|
|
26.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Albemarle Corporation
|
$
|
119,278
|
|
|
$
|
132,357
|
|
|
$
|
45,594
|
|
|
$
|
297,229
|
|
|
$
|
37,271
|
|
|
$
|
(141,672)
|
|
|
$
|
192,828
|
|
|
12.8
|
%
|
Depreciation and
amortization
|
53,895
|
|
|
23,946
|
|
|
24,653
|
|
|
102,494
|
|
|
4,151
|
|
|
4,890
|
|
|
111,535
|
|
|
7.4
|
%
|
Non-recurring and
other unusual items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,388
|
|
|
14,388
|
|
|
1.0
|
%
|
Interest and financing
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34,737
|
|
|
34,737
|
|
|
2.3
|
%
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33,873
|
|
|
33,873
|
|
|
2.3
|
%
|
Non-operating pension
and OPEB items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,803)
|
|
|
(5,803)
|
|
|
(0.4)
|
%
|
Adjusted
EBITDA
|
$
|
173,173
|
|
|
$
|
156,303
|
|
|
$
|
70,247
|
|
|
$
|
399,723
|
|
|
$
|
41,422
|
|
|
$
|
(59,587)
|
|
|
$
|
381,558
|
|
|
25.4
|
%
|
Non-operating pension and OPEB items, consisting of
mark-to-market actuarial gains/losses, settlements/curtailments,
interest cost and expected return on assets, are not allocated to
Albemarle's operating segments and
are included in the Corporate category. In addition, the company
believes that these components of pension cost are mainly driven by
market performance, and the company manages these separately from
the operational performance of the company's businesses. In
accordance with GAAP, these non-operating pension and OPEB items
are included in Other income (expenses), net. Non-operating pension
and OPEB items were as follows (in thousands):
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Interest
cost
|
$
|
5,430
|
|
|
$
|
7,133
|
|
|
$
|
10,858
|
|
|
$
|
14,288
|
|
Expected return on
assets
|
(10,901)
|
|
|
(10,028)
|
|
|
(21,794)
|
|
|
(20,091)
|
|
Total
|
$
|
(5,471)
|
|
|
$
|
(2,895)
|
|
|
$
|
(10,936)
|
|
|
$
|
(5,803)
|
|
In addition to the non-operating pension and OPEB items
disclosed above, the company has identified certain other items and
excluded them from Albemarle's
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
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Restructuring and
other(1)
|
$
|
—
|
|
|
$
|
0.04
|
|
|
$
|
0.01
|
|
|
$
|
0.06
|
|
Acquisition and
integration related costs(2)
|
0.01
|
|
|
0.04
|
|
|
0.03
|
|
|
0.06
|
|
Albemarle Foundation
contribution(3)
|
0.13
|
|
|
—
|
|
|
0.13
|
|
|
—
|
|
Gain on sale of
business(4)
|
(2.82)
|
|
|
—
|
|
|
(2.87)
|
|
|
—
|
|
Loss on early
extinguishment of debt(5)
|
0.01
|
|
|
—
|
|
|
0.21
|
|
|
—
|
|
Other(6)
|
0.04
|
|
|
(0.01)
|
|
|
0.10
|
|
|
(0.02)
|
|
Discrete tax
items(7)
|
(0.06)
|
|
|
—
|
|
|
(0.06)
|
|
|
(0.01)
|
|
Total non-recurring
and other unusual items
|
$
|
(2.69)
|
|
|
$
|
0.07
|
|
|
$
|
(2.45)
|
|
|
$
|
0.09
|
|
|
|
(1)
|
During the three and
six months ended June 30, 2021, Albemarle recorded facility closure
costs related to offices in Germany, and severance expenses in
Germany and Belgium, in Selling, general and administrative
expenses of $0.8 million and $1.5 million ($0.5 million and $1.1
million after income taxes, or less than $0.01 and $0.01 per
share), respectively. In 2020, Albemarle recorded severance
expenses as part of business reorganization plans, impacting each
of its businesses and Corporate, primarily in the U.S., Germany and
with its Jordanian joint venture partner. During the three months
ended June 30, 2020, the company recorded expenses of $6.7 million
($4.7 million after income taxes, or $0.04 per share) in Selling,
general and administrative expenses. During the six months ended
June, 2020, the company recorded severance expenses in Cost of
goods sold, Selling, general and administrative expenses and Net
income attributable to noncontrolling interest of $0.7 million,
$8.2 million and a $0.3 million gain ($6.2 million after income
taxes, or $0.06 per share), respectively. The balance of unpaid
severance is recorded in Accrued expenses and is expected to
primarily be paid through 2021.
|
|
|
|
(2)
|
Costs related to the
acquisition, integration and potential divestitures of various
significant projects, recorded in Selling, general and
administrative expenses for the three and six months ended June 30,
2021 were $1.9 million and $4.1 million ($1.5 million and $3.2
million after income taxes, or $0.01 and $0.03 per share),
respectively, and for the three and six months ended June 30, 2020
were $5.5 million and $8.4 million ($4.2 million and $6.5 million
after income taxes, or $0.04 and $0.06 per share),
respectively.
|
|
|
|
(3)
|
Included in Selling,
general and administrative expenses for the three and six months
ended June 30, 2021 is a charitable contribution of $20.0 million
($15.5 million after income taxes, or $0.13 per share), using a
portion of the proceeds received from the FCS divestiture, to the
Albemarle Foundation, a non-profit organization that sponsors
grants, health and social projects, educational initiatives,
disaster relief, matching gift programs, scholarships and other
charitable initiatives in locations where Albemarle's employees
live and the company operates. This contribution is in addition to
the normal annual contribution made to the Albemarle Foundation by
the company, and is significant in size and nature in that it is
intended to provide more long-term benefits in these
communities.
|
|
|
|
(4)
|
Included in Gain on
sale of business, for the three and six months ended June 30, 2021
is $429.4 million ($331.6 million after discrete income taxes, or
$2.87 per share) related to the sale of the FCS
business.
|
|
|
|
(5)
|
Included in Interest
and financing expenses for the three and six months ended June 30,
2021 is a loss on early extinguishment of debt of $1.2 million and
$29.0 million ($0.8 million and $23.8 million after income
taxes, or $0.01 and $0.21 per share), respectively, representing
the tender premiums, fees, unamortized discounts and unamortized
deferred financing costs from the redemption of $1.5 billion in
debt using the proceeds from the issuance of common
stock.
|
|
|
|
(6)
|
Other adjustments for
the three months ended June 30, 2021 included amounts recorded
in:
|
|
•
|
Selling, general and
administrative expenses - $4.0 million of a loss resulting
from the sale of property, plant and equipment, $1.6 million
of charges for an environmental reserve at a site not part of the
company's operations and $1.4 million of expenses primarily
related to non-routine labor and compensation related costs that
are outside normal compensation arrangements.
|
|
•
|
Other income, net -
$0.3 million of a gain resulting from the adjustment of
indemnification obligations related to previously disposed
businesses.
|
|
After income taxes,
these charges totaled $4.9 million, or $0.04 per share.
|
|
|
|
Other adjustments for
the six months ended June 30, 2021 included amounts recorded
in:
|
|
•
|
Selling, general and
administrative expenses - $6.0 million of expenses primarily
related to non-routine labor and compensation related costs that
are outside normal compensation arrangements, a $4.0 million
loss resulting from the sale of property, plant and equipment and
$1.6 million of charges for an environmental reserve at a site
not part of the company's operations.
|
|
•
|
Other income, net -
$3.6 million of expenses primarily related to asset retirement
obligation charges to update an estimate at a site formerly owned
by Albemarle.
|
|
After income taxes,
these charges totaled $11.4 million, or $0.10 per
share.
|
|
|
|
Other adjustments for
the three months ended June 30, 2020 included amounts recorded
in:
|
|
•
|
Other expenses, net -
$0.9 million ($0.6 million after income taxes, or $0.01 per share)
net gain primarily relating to the sale of idle properties in
Germany.
|
|
|
|
Other adjustments for
the six months ended June 30, 2020 included amounts recorded
in:
|
|
•
|
Other expenses, net -
$2.7 million gain resulting from the settlement of a legal matter
related to a business sold and $0.8 million net gain primarily
relating to the sale of idle properties in Germany, partially
offset by a $0.8 million loss resulting from the adjustment of
indemnifications related to previously disposed
businesses.
|
|
After income taxes,
these net gains totaled $1.7 million, or $0.02 per
share.
|
|
|
(7)
|
Included in Income
tax expense for the three and six months ended June 30, 2021 are
discrete net tax benefits of $7.6 million, or $0.06 per share and
$6.6 million, or $0.06 per share, respectively. The net benefit for
the three months is primarily related to excess tax benefits
realized from stock-based compensation arrangements and the
revaluation of deferred taxes due to tax rate changes. The net
benefit for the six months is primarily related to the release of a
foreign valuation allowance, excess tax benefits realized from
stock-based compensation arrangements, and the revaluation of
deferred taxes due to tax rate changes, partially offset by tax
expense due to an out-of-period adjustment regarding an overstated
deferred tax liability for the three-month period ended December
31, 2017.
|
|
|
|
Included in Income
tax expense for the three and six months ended June 30, 2020 are
discrete net tax benefits of $0.5 million, or less than $0.01 per
share, and $1.6 million, or $0.01 per share. The net benefit for
the three months is primarily related to lapses in statute of
limitations. The net benefit for the six months is primarily
related to excess tax benefits realized from stock-based
compensation arrangements.
|
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 reported in accordance with GAAP (in thousands, except
percentages).
|
Income before
income taxes and
equity in net income
of unconsolidated
investments
|
|
Income tax
expense
|
|
Effective
income
tax rate
|
Three months ended
June 30, 2021
|
|
|
|
|
|
As
reported
|
$
|
535,195
|
|
|
$
|
106,985
|
|
|
20.0
|
%
|
Non-recurring, other
unusual and non-operating pension and OPEB items
|
(404,383)
|
|
|
(84,114)
|
|
|
|
As
adjusted
|
$
|
130,812
|
|
|
$
|
22,871
|
|
|
17.5
|
%
|
|
|
|
|
|
|
Three months ended
June 30, 2020
|
|
|
|
|
|
As
reported
|
$
|
88,075
|
|
|
$
|
15,431
|
|
|
17.5
|
%
|
Non-recurring, other
unusual and non-operating pension and OPEB items
|
8,445
|
|
|
2,837
|
|
|
|
As
adjusted
|
$
|
96,520
|
|
|
$
|
18,268
|
|
|
18.9
|
%
|
|
|
|
|
|
|
Six months ended
June 30, 2021
|
|
|
|
|
|
As
reported
|
$
|
658,489
|
|
|
$
|
129,092
|
|
|
19.6
|
%
|
Non-recurring, other
unusual and non-operating pension and OPEB items
|
(370,457)
|
|
|
(78,682)
|
|
|
|
As
adjusted
|
$
|
288,032
|
|
|
$
|
50,410
|
|
|
17.5
|
%
|
|
|
|
|
|
|
Six months ended
June 30, 2020
|
|
|
|
|
|
As
reported
|
$
|
203,548
|
|
|
$
|
33,873
|
|
|
16.6
|
%
|
Non-recurring, other
unusual and non-operating pension and OPEB items
|
8,906
|
|
|
3,795
|
|
|
|
As
adjusted
|
$
|
212,454
|
|
|
$
|
37,668
|
|
|
17.7
|
%
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/albemarle-reports-second-quarter-results-301348671.html
SOURCE Albemarle Corporation