cdeb2cdd4b03b281323f8aa612b39281dc8c042addc3dcd2c1f18db0a71c8a3a

United States

Foreign

- South Korea

- China

- Japan

Other

Total Revenue

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6143f7c483a19a5448cf33d85708fb91c4149e8509ab049a816aeb06f7a30faa

Adjustments for Non-Cash Items

Stock-Based Compensation [USD, Thousands]

Changes in Working Capital [USD, Thousands]

Capital Expenditures (CapEx) [USD, Thousands]

Proceeds from / Repayments of Debt

Share Repurchases [USD, Thousands]

Dividend Payments [USD, Thousands]

Net Change in Cash [USD, Thousands]

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Net sales (USD, thousands)

Cost of goods sold (USD, thousands)

Gross profit (USD, thousands)

Selling, general and administrative expenses (USD, thousands)

Restructuring charges and asset write-offs (USD, thousands)

Research and development expenses (USD, thousands)

Operating (loss) profit (USD, thousands)

Interest and financing expenses (USD, thousands)

Other income, net (USD, thousands)

(Loss) income before income taxes and equity in net income of unconsolidated investments (USD, thousands)

Income tax expense (benefit) (USD, thousands)

(Loss) income before equity in net income of unconsolidated investments (USD, thousands)

Equity in net income of unconsolidated investments (net of tax) (USD, thousands)

Net (loss) income (USD, thousands)

Net income attributable to noncontrolling interests (USD, thousands)

Net (loss) income attributable to Albemarle Corporation (USD, thousands)

Mandatory convertible preferred stock dividends (USD, thousands)

Net (loss) income attributable to Albemarle Corporation common shareholders (USD, thousands)

Basic (loss) earnings per share attributable to common shareholders (USD)

Diluted (loss) earnings per share attributable to common shareholders (USD)

Weighted-average common shares outstanding—basic (Shares)

Weighted-average common shares outstanding—diluted (Shares)

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The surge in **cash and cash equivalents** in Q1 2024 was primarily driven by the **issuance of mandatory convertible preferred stock**, which generated **approximately $2.2 billion** in net proceeds. This influx of funds was then partly used to repay **$620.8 million** in commercial paper, with other factors such as capital expenditures and operating cash flows also playing a role, though the issuance of preferred stock was the key driver.  **[0000915913-24-000100_alb-20240331.htm:43]** 

Why did Cash and cash equivalents surge in Q1 2024?

The drop in total assets by Q4 2024 was primarily driven by several factors. **Inventories** declined by **$658,756 thousand** (from **$2,161,287 thousand** to **$1,502,531 thousand**), **trade accounts receivable** fell by **$470,959 thousand** (from **$1,213,160 thousand** to **$742,201 thousand**), **other current assets** decreased by **$276,559 thousand** (from **$443,475 thousand** to **$166,916 thousand**), **investments** were reduced by **$252,116 thousand** (from **$1,369,855 thousand** to **$1,117,739 thousand**), and there was a slight decrease in **goodwill** by **$47,015 thousand** (from **$1,629,729 thousand** to **$1,582,714 thousand**). Although this decline was partially offset by an increase in **cash and cash equivalents** by **$302,330 thousand**, the overall effect led to a significant drop in total assets.  **[0000915913-25-000026_alb-20241231.htm:168]** **[0000915913-25-000023_a4q24earningsreleaseex991.htm:6]** 

What factors contributed to the drop in Total assets by Q4 2024?

The sharp decline in Albemarle's long-term debt in Q4 2024 was primarily driven by a **net repayment of $620,000 thousand** in commercial paper notes, which was funded by proceeds from the issuance of **Mandatory Convertible Preferred Stock**. Additionally, the company recorded **amortization of debt discounts**—including those from an interest-free loan arranged in 2023—and made scheduled payments on maturing debt obligations (with **$398,023 thousand** due within one year), all of which collectively contributed to the reduction in long-term debt.  **[0000915913-25-000026_alb-20241231.htm:197]** **[0000915913-25-000026_alb-20241231.htm:146]** **[0000915913-25-000026_alb-20241231.htm:112]** 

What led to the sharp decline in Long-term debt in Q4 2024?

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The net sales in Q1 2024 were significantly lower primarily because **lower lithium carbonate and hydroxide market pricing** had a substantial negative impact, with a decrease of **$1.8 billion in sales** driving most of the decline. This pricing downturn more than offset the benefit from **higher sales volumes** in certain segments, and the overall effect was compounded by an **unfavorable currency translation** due to a stronger U.S. Dollar.  **[0000915913-24-000100_alb-20240331.htm:36]** **[0000915913-24-000100_alb-20240331.htm:41]** **[0000915913-24-000098_a1q24earningsreleaseex991.htm:2]** 

Why were net sales so low in Q1 2024?

The drastic drop in gross profit in Q1 2024 was primarily driven by **lower pricing** impacts in the Energy Storage segment, particularly for lithium carbonate and hydroxide sold under index-referenced and variable-priced contracts. Additionally, **unfavorable currency exchange impacts** due to a stronger U.S. Dollar against other currencies significantly contributed to the decline, even though higher sales volumes in the Energy Storage segment provided only a partial offset to these negative effects.  **[0000915913-24-000100_alb-20240331.htm:36]** **[0000915913-24-000100_alb-20240331.htm:41]** 

What caused the drastic drop in gross profit in Q1 2024?

The dramatic operating loss in **Q3 2024** was primarily driven by **substantial restructuring charges and asset write-offs** (with expenses of **$828,146 thousand** compared to **$1,757 thousand** in Q3 2023), along with a shift from a **gross profit** in Q3 2023 to a **gross loss** in Q3 2024. This was compounded by a marked **41% decline in net sales**, largely due to a **71% fall in pricing** in the Energy Storage segment, increased **research and development expenses** (a **6% rise**), and a significant **63% jump in interest and financing expenses**.  **[0000915913-24-000158_alb-20240930.htm:42]** **[0000915913-24-000158_alb-20240930.htm:43]** **[0000915913-24-000156_a3q24earningsreleaseex991.htm:3]** **[20241106PH48992:2]** 

What drove the dramatic operating loss in Q3 2024?

The drastic negative swing in net income during **Q3 2024** was driven by a combination of factors. **Lower net sales** played a major role, falling by **41%** due to a **71% drop in pricing** in the Energy Storage segment (despite a modest uptick in volumes), which significantly reduced revenue. Additionally, the company incurred massive **restructuring charges and asset write-offs**—jumping from a very small charge in the prior quarter to **$828,146 thousand**—and moved from a strong **gross profit of $54,934 thousand** in Q3 2023 to a **gross loss of $(104,034) thousand** in Q3 2024. Furthermore, **reduced equity earnings**, a **63% increase in interest and financing expenses**, and a shift from a **tax benefit** to an **income tax expense** also contributed to the overall negative swing. These combined impacts resulted in a net income decline of approximately **$1,371,525 thousand** from Q3 2023 to Q3 2024.  **[0000915913-24-000156_a3q24earningsreleaseex991.htm:3]** **[0000915913-24-000158_alb-20240930.htm:42]** **[0000915913-24-000158_alb-20240930.htm:43]** 

Why did net income swing drastically negative in Q3 2024?

EPS turned significantly negative in Q3 2024 primarily because the company shifted from a net income of **$302.5 million** in Q3 2023 to a net loss of **$(1.1) billion** in Q3 2024. This drastic swing was driven by several factors, including **pre-tax charges of $861 million** related to restructuring and asset write-offs, a significant decline in pricing—especially in the Energy Storage segment, where net sales dropped by **55%**—and additional pressure from a **$41.7 million** reduction for mandatory convertible preferred stock dividends. Together, these elements led to lower revenues, margin compression (with an adjusted EBITDA decline of **67.6%**), and ultimately a substantial negative impact on earnings per share.  **[0000915913-24-000156_a3q24earningsreleaseex991.htm:3]** **[0000915913-24-000158_alb-20240930.htm:43]** **[20241106PH48992:0]** **[20241106PH48992:2]** 

Why did EPS turn significantly negative in Q3 2024?

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b9b7e837f388a7577fa75f00fcd21d3440d24bc412d9c96ae58ae031e19fcac8

Albemarle Corp (ALB)

Financials