Albemarle(ALB)2024-05-01 20:26Financial Performance - Net sales for Q1 2024 were $1.4 billion, a decrease of 47% year-over-year from $2.6 billion in Q1 2023, primarily due to lower pricing in Energy Storage[12]. - Net income attributable to Albemarle was $2 million, down $1.2 billion from the prior year, with adjusted EBITDA of $291 million, a decline of $1.5 billion or 83.5% year-over-year[10][12]. - Energy Storage net sales decreased by 59% to $801 million, driven by a 89% drop in pricing, despite a 31% increase in volumes[14]. - Adjusted diluted EPS for Q1 2024 was $0.26, down from $10.32 in Q1 2023, reflecting the impact of lower lithium market pricing[10][12]. - Gross profit for Q1 2024 was $38,938, down from $1,276,540 in Q1 2023, reflecting a significant decline[24]. - Operating loss for Q1 2024 was $(179,506), compared to an operating profit of $1,101,763 in Q1 2023[24]. - Net income attributable to Albemarle Corporation was $2,448 in Q1 2024, a sharp decline from $1,238,580 in Q1 2023[24]. - Total adjusted EBITDA for Q1 2024 was $291,236, a decrease of 83.5% from $1,761,704 in Q1 2023[28]. - Adjusted net income attributable to common shareholders was $30,557 thousand in Q1 2024, compared to $1,216,180 thousand in Q1 2023, reflecting a significant decline[34]. - EBITDA for Q1 2024 was $160,447 thousand, representing 11.8% of net sales, compared to $1,629,591 thousand or 63.2% of net sales in Q1 2023[34]. Liquidity and Capital Expenditures - As of March 31, 2024, Albemarle had estimated liquidity of approximately $3.7 billion, including $2.1 billion in cash and equivalents[19]. - Capital expenditures for 2024 are estimated to be between $1.6 billion and $1.8 billion, with depreciation and amortization expected to be $580 to $660 million[9]. - The company completed a $2.3 billion public offering of mandatory convertible preferred stock to enhance financial flexibility and fund growth investments[18]. - Cash and cash equivalents increased to $2,055,813 as of March 31, 2024, up from $889,900 at the beginning of the year[27]. - Total assets rose to $19,032,333 as of March 31, 2024, compared to $18,270,652 at the end of 2023[26]. Tax and Restructuring - The effective income tax rate for Q1 2024 was 2.2%, a significant decrease from 23.9% in Q1 2023, primarily due to changes in geographic income mix[13]. - The company recorded $33.5 million in severance costs and other restructuring charges in Q1 2024, impacting financial flexibility[35]. - Non-recurring and other unusual items totaled $40,044 thousand in Q1 2024, compared to a negative $22,774 thousand in Q1 2023[34]. Future Outlook - Albemarle's full-year outlook for 2024 includes net sales projections of $5.5 to $6.2 billion, depending on lithium market price scenarios[5]. - The company is on track to achieve over $280 million in productivity benefits for 2024, having delivered over $90 million in Q1[3]. - The company plans to optimize its cost structure and re-phase organic growth investments to enhance cash flow and financial flexibility[35].