Albemarle's Q4 Earnings and Sales Miss Estimates on Lower Pricing

Core Viewpoint - Albemarle Corporation reported a significant decline in earnings and revenues for the fourth quarter of 2024, indicating challenges in its Energy Storage segment and overall market conditions [1][2][5]. Financial Performance - Earnings per share for Q4 2024 were 29 cents, a recovery from a loss of $5.26 per share in the same quarter last year [1]. - Adjusted loss for the quarter was $1.09 per share, which was worse than the Zacks Consensus Estimate of a loss of 49 cents [1]. - Revenues fell approximately 48% year over year to $1,231.7 million, missing the Zacks Consensus Estimate of $1,311.5 million [2]. Segment Performance - The Energy Storage unit's sales dropped around 63% year over year to $616.8 million, missing the consensus estimate of $738 million due to reduced pricing and volumes [3]. - The Specialties segment recorded sales of $332.9 million, down about 2% year over year, also below the consensus estimate of $342 million [4]. - The Ketjen unit's revenues were $281.9 million, down roughly 17% year over year, falling short of the consensus estimate of $300 million [4]. Full-Year Results - For the full year 2024, the reported loss was $11.20 per share, compared to earnings of $13.36 per share the previous year [5]. - Net sales for FY24 declined around 44% year over year to $5,377.5 million [5]. Financial Position - At the end of 2024, cash and cash equivalents were approximately $1,192.2 million, up around 34% year over year [6]. - Long-term debt was approximately $3,118.1 million, down around 12% from the prior year [6]. - Cash from operations for FY24 was $702 million, down around 47% year over year [6]. Outlook - The company is implementing cost-cutting measures and optimizing its conversion network to enhance efficiencies and maintain competitive positioning [7]. - Expected capital expenditures for FY25 have been reduced by $100 million, now projected to be in the range of $700-$800 million [7]. - Depreciation and amortization expenses are anticipated to be between $630-$670 million for 2025 [8]. Stock Performance - Albemarle's shares have decreased by 31.7% over the past year, contrasting with a 0.5% rise in the Zacks Chemicals Diversified industry [9].