Albemarle Corporation Reports Significant Declines in Financial Performance for Q3 and Nine Months of 2024

Albemarle Corporation reported significant declines in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, net sales were $1,354.7 million, a decrease of 41% from $2,310.6 million in the prior year. Similarly, net sales for the nine months ended September 30, 2024, totaled $4,145.8 million, down 43% from $7,261.0 million in 2023. The Energy Storage segment was particularly affected, with sales dropping 55% to $767.3 million for the third quarter and 56% to $2,398.3 million for the nine-month period.

The company's profitability also suffered, with a gross loss of $104.0 million for the third quarter of 2024, compared to a gross profit of $54.9 million in the same quarter of 2023. For the nine months, Albemarle reported a gross loss of $75.7 million, down from a gross profit of $1,890.0 million in the previous year. Operating losses were substantial, reaching $1,108.8 million for the third quarter and $1,780.9 million for the nine months, compared to losses of $140.0 million and profits of $1,101.7 million, respectively, in 2023. The net loss attributable to Albemarle for the third quarter was $1,069.0 million, a stark contrast to a net income of $302.5 million in the prior year. For the nine months, the net loss was $1,254.7 million, compared to a net income of $2,191.2 million in 2023.

Strategically, Albemarle undertook a restructuring of its operations, which included halting construction on Kemerton Trains 3 and 4 and placing Train 2 into care and maintenance. The company expects to incur restructuring charges of approximately $30 million to $50 million in the fourth quarter of 2024. Additionally, a transition to a fully integrated functional model is set to take effect on November 1, 2024, which will involve a workforce reduction of 6% to 7% of global employees.

Albemarle's financial position showed some resilience, with total assets of $17.5 billion as of September 30, 2024, and total equity increasing to $10.5 billion. The company raised $2.2 billion through the issuance of mandatory convertible preferred stock in March 2024, which helped fund operations and repay commercial paper. However, cash flows from operations decreased significantly to $701.4 million for the nine months ended September 30, 2024, down from $1.4 billion in the same period of 2023, primarily due to reduced earnings from the Energy Storage segment.