Second-Quarter 2024 and Recent Highlights (Unless otherwise stated, all percentage changes represent year-over-year comparisons)
Net sales of $1.4 billion, as lower pricing year-over-year was partly offset by Energy Storage volume growth of 37% as new capacity additions ramp
Net loss of ($188) million, or ($1.96) per diluted share attributable to common shareholders, which included an after-tax charge of $215 million related to capital project asset write-offs and associated contract cancellation costs
Adjusted diluted EPS attributable to common shareholders of $0.04
Adjusted EBITDA of $386 million, up sequentially, driven by higher equity income from increased Talison JV sales volumes
Cash from operations of $363 million, an increase of $289 million year-over-year, driven by higher Talison JV dividends and working capital improvements
Delivered more than $150 million in productivity benefits; on track to exceed the company's full-year restructuring and productivity target by 50%
Maintaining full-year outlook considerations; notably, the previously published $15/kg scenario is expected to apply even assuming lower July market pricing persists for the remainder of the year
Initiating comprehensive review of cost and operating structure to maintain competitive position, while addressing current end-market realities, including immediate footprint changes at the Kemerton, Australia site
"Our operational mindset continued to serve us well in the second quarter as Albemarle progressed important organic growth initiatives while taking actions to maintain our long-term competitive position," said Kent Masters, Albemarle's chairman and CEO. "We achieved the first commercial sales of product from our Meishan conversion plant and delivered more than $150 million in productivity benefits. We are also maintaining our full-year 2024 corporate outlook considerations."
Masters continued, "Building on the progress already underway, we are announcing a comprehensive review of our cost and operating structure, beginning with immediate footprint actions at our Kemerton site in Australia. The review and steps underway will maintain Albemarle's competitive position and ensure we execute with agility today and in the future."
Announcement of Asset and Cost Actions and Initiation of Review to Optimize Cost and Operating Structure
Albemarle announced today asset and cost actions designed to enhance its long-term competitiveness as part of a comprehensive review of its cost and operating structure. The review will help ensure that Albemarle maintains its competitive position throughout the cycle and is positioned for long-term value creation as it navigates end-market challenges, primarily in the lithium value chain. The asset and cost actions announced today include placing Kemerton Train 2 in care and maintenance, stopping construction on Kemerton Train 3, and focusing on optimizing and ramping Kemerton Train 1. As a result, Albemarle expects to recognize a charge in the range of $0.9-$1.1 billion as an exceptional item in the company's third-quarter 2024 results.
Today's announcement builds on the proactive measures announced by Albemarle in January 2024 to re-phase its organic growth investments and optimize its cost structure. Regarding those measures, in the second quarter, Albemarle delivered more than $150 million in productivity and restructuring cost improvements and is on track to exceed the company's initial target by approximately 50%. During the second quarter of 2024, the company recorded an after-tax charge of $215 million primarily related to stopping construction on Kemerton Train 4 and other capital project asset write-offs and associated contract cancellation costs.
Total Corporate Outlook Considerations
The company is maintaining its prior full-year outlook considerations, which are based on observed lithium market price scenarios. Notably, the previously published $15/kg range is expected to apply even when assuming that lower July market pricing persists for the remainder of the year, due to enterprise-wide cost improvements, strong volume growth, higher shipments from the Talison JV, and Energy Storage contract performance. These factors are expected to more than offset lower pricing and a reduced Specialties outlook.
Column 1
Column 2
Column 3
Column 4
0
Total Corporate FY 2024E Including Energy Storage Scenarios
1
Observed market price case(a)
Recent pricing
Q4 2023 average
H2 2023 average
2
Average lithium market price ($/kg LCE)(a)
$12-15
~$20
~$25
3
Net sales
$5.5 - $6.2 billion
$6.1 - $6.8 billion
$6.9 - $7.6 billion
4
Adjusted EBITDA(b)(c)
$0.9 - $1.2 billion
$1.6 - $1.8 billion
$2.3 - $2.6 billion
5
Weighted-average common shares outstanding(diluted)(d)
