Albemarle(ALB) - 2024 Q4 - Annual Report

Acquisitions and Investments - Albemarle acquired the remaining 40% ownership of the Kemerton lithium hydroxide processing facility for approximately $380 million, with the transaction effective retroactively to April 1, 2022[60]. - The acquisition of Guangxi Tianyuan New Energy Materials Co., Ltd. was completed for approximately$ 200 million, with a lithium processing plant capable of producing up to 25,000 metric tons of lithium carbonate equivalent annually[61]. - The restructuring of the MARBL Lithium Joint Venture reduced Albemarle's ownership interest from 60% to 50% as of October 18, 2023, impacting future revenue recognition from this joint venture[548]. - The company completed the acquisition of Guangxi Tianyuan New Energy Materials Co., Ltd. for approximately $200 million in cash, which included a deferral of about$ 29 million[601]. - The fair value of the assets acquired in the Guangxi Tianyuan acquisition included property, plant, and equipment valued at $106.6 million and other intangibles valued at$ 16.3 million[602]. - The restructuring of the MARBL joint venture allowed the company to acquire 100% ownership of the Kemerton lithium hydroxide processing facility, with a cash payment of approximately $380 million[626]. Financial Performance - The company’s net sales for the year ended December 31, 2024, were$ 5,377.5 million, a decrease of 44.5% compared to $9,617.2 million in 2023[538]. - The gross profit for 2024 was$ 62.5 million, significantly down from $1,185.9 million in 2023, indicating a gross margin decline[538]. - The company reported a net loss of$ 1,135.5 million for 2024, compared to a net income of $1,670.5 million in 2023, reflecting a substantial downturn in profitability[538]. - Comprehensive loss income for 2024 was$ 1,348.9 million, contrasting with comprehensive income of $1,702.8 million in 2023[541]. - The company reported a net loss of$ 1,179,449,000 for the year ended December 31, 2023, compared to a net income of $1,573,476,000 in 2022[545]. - The company reported accumulated other comprehensive loss of$ (742,062,000) as of December 31, 2024[545]. - For the year ended December 31, 2024, Albemarle Corporation reported a net loss of $1,135.5 million compared to a net income of$ 1,670.5 million in 2023, representing a significant decline in profitability[547]. Cash Flow and Liquidity - Cash flows from operating activities for 2024 were $702.1 million, down from$ 1,325.3 million in 2023, indicating a decrease of approximately 47%[547]. - The company’s cash and cash equivalents at the end of 2024 were $1,192.2 million, an increase of$ 302.3 million from $889.9 million at the end of 2023[547]. - The company issued 2,300 shares of mandatory convertible preferred stock in 2024, with a stated value of$ 1,000 each, totaling $2,235,105 thousand[543]. - The company received$ 2,236.8 million from the issuance of mandatory convertible preferred stock in 2024, which was a new financing activity not present in the previous year[547]. - The company repaid a net amount of $620.0 million of commercial paper notes during the year ended December 31, 2024, using proceeds from the issuance of mandatory convertible preferred stock[658]. Debt and Liabilities - As of December 31, 2024, Albemarle had variable interest rate borrowings of$ 27.5 million, representing 1% of total outstanding debt, with an average interest rate of 0.33%[514]. - Long-term debt decreased from $3,541,002 thousand in 2023 to$ 3,118,142 thousand in 2024, a decline of approximately 12.0%[543]. - The total long-term debt maturities for 2025 are projected at $398.5 million, with significant amounts due in subsequent years[647]. - The net pension liability decreased to$ 7.674 billion in 2024 from $8.771 billion in 2023, reflecting a reduction of approximately 12.5%[665]. - Total noncurrent liabilities increased from$ 769.100 million in 2023 to $819.204 million in 2024[688]. Environmental and Sustainability Goals - Albemarle aims to achieve net-zero carbon emissions by 2050, with a target to reduce scope 1 and 2 carbon intensity by 35% by 2030 from a 2019 baseline[55]. - The company plans to reduce freshwater usage intensity by 25% by 2030 in areas of high water risk, such as Chile and Jordan[56]. - The company is committed to responsible management of natural resources and aims to maximize the recovery of extracted minerals while preserving local environments[58]. Research and Development - Research and development expenses increased slightly to$ 86.7 million in 2024 from $85.7 million in 2023, showing continued investment in innovation[538]. - Research and development expenses are primarily personnel-related and are expensed as incurred, supporting contract research and custom manufacturing businesses[571]. Inventory and Assets - Total assets decreased from$ 18,270,652 thousand in 2023 to $16,609,649 thousand in 2024, a decline of approximately 9.1%[543]. - Current assets fell from$ 5,216,919 thousand in 2023 to $3,842,262 thousand in 2024, representing a decrease of about 26.4%[543]. - Inventories decreased from$ 2,161,287 thousand in 2023 to $1,502,531 thousand in 2024, a reduction of about 30.5%[543]. - Finished goods inventory decreased from$ 1,624.9 million in 2023 to $912.7 million in 2024, a reduction of approximately 44%[611]. - Total inventory value dropped from$ 2,161.3 million in 2023 to $1,502.5 million in 2024, reflecting a decline of about 30%[611]. Compliance and Legal Matters - The company finalized agreements to resolve matters with the DOJ and SEC in September 2023[696]. - A total of$ 218.5 million was paid in aggregate fines, disgorgement, and prejudgment interest to the DOJ and SEC[696]. - The resolution does not include a compliance monitorship, but the company has agreed to ongoing compliance reporting obligations[697]. - The conduct related to the resolution occurred prior to 2018[696]. - The company voluntarily self-reported potential violations of the U.S. Foreign Corrupt Practices Act[695].