CHARLOTTE, N.C., May 1, 2024 /PRNewswire/ -- Albemarle Corporation (NYSE:ALB), a global leader in providing essential elements for mobility, energy, connectivity and health, today announced its results for the first quarter ended March 31, 2024. First-Quarter 2024 and Recent Highlights(Unless otherwise stated, all percentage changes represent year-over-year comparisons) Net sales of $1.4 billion, driven by Energy Storage volume growth as projects ramp Net income of $2 million, or ($0.08)(a) per diluted share attributable to common shareholders Adjusted diluted EPS attributable to common shareholders of $0.26 Adjusted EBITDA(b) of $291 million On track to deliver more than $280 million target in productivity benefits in 2024; in Q1, delivered over $90 million in productivity and restructuring cost savings Conducted successful bidding events for spodumene concentrate and lithium carbonate, designed to promote price transparency and discovery Achieved 50% operating rate milestone at Kemerton I; commissioning at Meishan and ramp of the Salar Yield Improvement Project continue to progress well Reaffirmed FY 2024 corporate outlook considerations, including ranges based on lithium market price scenarios (a) After mandatory convertible preferred stock dividends (b) Beginning in 2024, Adjusted EBITDA definition includes Albemarle's share of the pre-tax earnings of the Talison joint venture "In the first quarter, our team demonstrated agility in dynamic market conditions by continuing to deliver solid volumetric growth, ramping new conversion facilities, and executing cost reduction and productivity improvements," said Kent Masters, Albemarle's chairman and CEO. "We have strengthened our competitive position, enhanced our financial flexibility, and started to increase lithium market price transparency. Our actions best position us to serve our core end-markets today and for the future." Masters added, "We remain focused on disciplined capital allocation to deliver profitable organic growth and value for all stakeholders." 2024 Total Corporate Outlook ConsiderationsThe company maintains its prior full-year outlook, which is based on three lithium market price scenarios. Total Corporate FY 2024E Including Energy Storage Scenarios Observed market price case(a) YE 2023 Q4 2023 average H2 2023 average Average lithium market price ($/kg LCE)(a) ~$15 ~$20 ~$25 Net sales $5.5 - $6.2 billion $6.1 - $6.8 billion $6.9 - $7.6 billion Adjusted EBITDA(b)(c) $0.9 - $1.2 billion $1.6 - $1.8 billion $2.3 - $2.6 billion (a) Price represents blend of relevant Asia and China market indices for the periods referenced. (b) 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. See "Additional Information regarding Non-GAAP Measures" for more information. (c) Presented under updated adjusted EBITDA definition as of 2024. FY23 adjusted EBITDA under updated definition would be $3.5B. See Non-GAAP Reconciliations for further details. 2024 Other Corporate Outlook ConsiderationsFollowing the company's public offering of depository shares representing an interest in its mandatory convertible preferred stock, interest and financing expenses are expected to be at the low end of the previous range of $180 to $220 million. The change in weighted-average common shares outstanding (diluted) reflects the recently issued shares of mandatory convertible preferred stock on an as-converted basis. The change to the adjusted effective tax rate range is related to geographic income mix and is dependent on the assumption of lithium market price. All other corporate outlook considerations are unchanged. Other Corporate FY 2024E Capital expenditures $1.6 - $1.8 billion Depreciation and amortization $580 - $660 million Adjusted effective tax rate (5%) - 27% Corporate costs $120 - $150 million Interest and financing expenses $180 - $210 million Weighted-average common shares outstanding (diluted)(d) 135 - 139 million (d) Each quarter, Albemarle will report the more dilutive of either: 1) adding the underlying shares in the mandatory to the share count or 2) reducing Albemarle's net income to common shareholders by the mandatory dividend. The 20-day volume-weighted average common share price will be used in determining the underlying shares to be added to the share count. First Quarter 2024 Results In millions, except per share amounts Q1 2024 Q1 2023 $ Change % Change Net sales $    1,360.7 $    2,580.3 $   (1,219.5) (47.3) % Net income attributable to Albemarle Corporation $           2.4 $    1,238.6 $   (1,236.1) (99.8) % Adjusted EBITDA(a)(b) $       291.2 $    1,761.7 $   (1,470.5) (83.5) % Diluted (loss) earnings per share attributable to common shareholders $        (0.08) $       10.51 $      (10.59) (100.8) %    Non-recurring and other unusual items(a) 0.34 (0.19) Adjusted diluted earnings per share attributable tocommon shareholders(a)(c) $         0.26 $       10.32 $      (10.06) (97.5) % (a) See Non-GAAP Reconciliations for further details. (b) For comparability, 2023 figures presented under adjusted EBITDA definition that the company adopted beginning in 2024. (c) Totals may not add due to rounding. Net sales for the first quarter of 2024 were $1.4 billion compared to $2.6 billion for the prior-year quarter, a year-over-year decline of 47% that was driven primarily by lower pricing in Energy Storage. Net income attributable to Albemarle of $2 million decreased by $1.2 billion and adjusted EBITDA of $291 million declined by $1.5 billion from the prior-year quarter. The decline in earnings was primarily due to lower lithium market pricing, as well as additional margin compression due to inventory timing and reduced equity earnings at the Talison joint venture, which more than offset favorable volumes. The effective income tax rate for the first quarter of 2024 was 2.2% compared to 23.9% in the same period of 2023. On an adjusted basis, the effective income tax rates were (12.4)% and 23.6% for the first quarter of 2024 and 2023, respectively, with the decrease primarily due to changes in the geographic income mix.  Energy Storage Results In millions Q1 2024 Q1 2023 $ Change % Change Net Sales $           800.9 $        1,943.7 $       (1,142.8) (58.8) % Adjusted EBITDA $           198.0 $        1,567.7 $       (1,369.7) (87.4) % Energy Storage net sales for the first quarter of 2024 were $801 million, a decrease of $1.1 billion, or 59%, due to lower pricing (-89%), which more than offset higher volumes (+31%) related to the ramp of lithium projects, including the La Negra III/IV expansion in Chile and the processing plant in Qinzhou, China, and sales of chemical-grade spodumene. Adjusted EBITDA of $198 million decreased $1.4 billion, driven by lower lithium market pricing, as well as margin compression due to inventory timing and reduced equity earnings at the Talison joint venture, which more than offset favorable volumes. Specialties Results In millions Q1 2024 Q1 2023 $ Change % Change Net Sales $           316.1 $           418.8 $          (102.7) (24.5) % Adjusted EBITDA $             45.2 $           162.2 $          (117.0) (72.1) % Specialties net sales for the first quarter of 2024 were $316 million, a decrease of $103 million, or 25%, primarily due to lower prices (-19%) and lower volumes (-6%). Adjusted EBITDA of $45 million decreased $117 million. Both volumes and prices were impacted by weaker demand, particularly for consumer electronics. Ketjen Results In millions Q1 2024 Q1 2023 $ Change % Change Net Sales $           243.8 $           217.8 $             26.0 11.9 % Adjusted EBITDA $             22.0 $             14.5 $               7.4 51.1 % Ketjen net sales of $244 million for the first quarter of 2024 were up 12% compared to the previous year due to higher volumes (+10%) and higher prices (+2%), primarily from clean fuel technologies. Adjusted EBITDA of $22 million increased $7 million largely due to higher sales and lower input costs. Cash Flow and Capital DeploymentCash from operations of $98 million for the first quarter of 2024 decreased $623 million versus the prior year period. The year-over-year decrease was driven by lower adjusted EBITDA and reduced dividends received from equity investments, partially offset by lower investment in working capital. Capital expenditures of $579 million increased by $164 million versus the prior-year period due to the timing of project spend. On March 8, 2024, Albemarle completed a $2.3 billion public mandatory convertible preferred stock offering to fortify the balance sheet, enhance financial flexibility, and fund in-flight growth investments. Albemarle's capital allocation priorities continue to focus on investing in its organic opportunities to drive profitable growth, maintaining its investment grade credit rating, and funding its dividends. Balance Sheet and LiquidityAs of March 31, 2024, Albemarle had estimated liquidity of approximately $3.7 billion, including $2.1 billion of cash and equivalents, $1.5 billion available under its revolver and $124 million available under other credit lines. Total debt was $3.5 billion, representing a debt covenant net debt to adjusted EBITDA of approximately 0.9 times. Earnings Call Date: Thursday, May 2, 2024 Time: 9:00 AM Eastern time Dial-in (U.S.): 1-800-590-8290 Dial-in (International): 1-240-690-8800 Conference ID: ALBQ1 The company's earnings presentation and supporting material are available on Albemarle's website at https://investors.albemarle.com.  About AlbemarleAlbemarle Corporation (NYSE:ALB) leads the world in transforming essential resources into critical ingredients for mobility, energy, connectivity, and health. We partner to pioneer new ways to move, power, connect and protect with people and planet in mind. A reliable and high-quality global supply of lithium and bromine allow us to deliver advanced solutions for our customers. Learn more about how the people of Albemarle are enabling a more resilient world at albemarle.com and on X (formerly Twitter) Albemarle regularly posts information to www.albemarle.com, including notification of events, news, financial performance, investor presentations and webcasts, non-GAAP reconciliations, Securities and Exchange Commission ("SEC") filings and other information regarding the company, its businesses and the markets it serves. Forward-Looking StatementsThis press release contains statements concerning our expectations, anticipations and beliefs regarding the future, which constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on assumptions that we have made as of the date hereof and are subject to known and unknown risks and uncertainties, often contain words such as "anticipate," "believe," "estimate," "expect," "guidance," "intend," "may," "outlook," "scenario," "should," "would," and "will". Forward-looking statements may include statements regarding: our 2024 company and segment outlooks, including expected market pricing of lithium and spodumene and other underlying assumptions and outlook considerations; expected capital expenditure amounts and the corresponding impact on cash flow; market pricing of lithium carbonate equivalent and spodumene; anticipated timing of the commissioning of the Meishan China lithium conversion facility; plans and expectations regarding other projects and activities, cost reductions and accounting charges, and all other information relating to matters that are not historical facts. Factors that could cause Albemarle's actual results to differ materially from the outlook expressed or implied in any forward-looking statement include: changes in economic and business conditions; financial and operating performance of customers; timing and magnitude of customer orders; fluctuations in lithium market prices; production volume shortfalls; increased competition; changes in product demand; availability and cost of raw materials and energy; technological change and development; fluctuations in foreign currencies; changes in laws and government regulation; regulatory actions, proceedings, claims or litigation; cyber-security breaches, terrorist attacks, industrial accidents or natural disasters; political unrest; changes in inflation or interest rates; volatility in the debt and equity markets; acquisition and divestiture transactions; timing and success of projects; performance of Albemarle's partners in joint ventures and other projects; changes in credit ratings; and the other factors detailed from time to time in the reports Albemarle files with the SEC, including those described under "Risk Factors" in Albemarle's most recent Annual Report on Form 10-K and any subsequently filed Quarterly Reports on Form 10-Q, which are filed with the SEC and available on the investor section of Albemarle's website (investors.albemarle.com) and on the SEC's website at www.sec.gov. These forward-looking statements speak only as of the date of this press release. Albemarle assumes no obligation to provide any revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws. Albemarle Corporation and Subsidiaries Consolidated Statements of Income (In Thousands Except Per Share Amounts) (Unaudited) Three Months Ended March 31, 2024 2023