Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Albemarle boosts 2021 forecast on rising global lithium demand

Published 11/03/2021, 04:36 PM
Updated 11/03/2021, 05:32 PM
© Reuters. FILE PHOTO: A sign at the approach road leads to Albemarle's lithium evaporation ponds at its facility in Silver Peak, Nevada, U.S., January 9, 2019. REUTERS/Ernest Scheyder/File Photo

(Reuters) -Albemarle Corp, the world's largest producer of lithium for electric vehicles, boosted its 2021 sales forecast on Wednesday after posting an adjusted third-quarter profit that easily beat Wall Street's expectations.

The company's stock rose 4.1% to $272.80 in after-hours trading following the results. Demand for lithium and other EV minerals has jumped in recent months as automakers around the globe announce aggressive plans to switch to all-electric fleets.

Sales of lithium, the company's largest division, jumped 35% during the quarter, helped by rising prices. Albemarle (NYSE:ALB) Chief Executive Kent Masters forecast "increasing demand from our customers" for the EV battery metal.

Albemarle posted a third-quarter net loss of $392.8 million, or $3.36 per share, compared with a net profit of $98.3 million, or 92 cents per share in the year-ago quarter, even as revenue rose 11%.

The result included a $657.4 million charge related to an arbitration decision about Rockwood Holdings Inc's 2014 sale of a pigments division to Huntsman (NYSE:HUN) Corp. Albemarle inherited Rockwood's liabilities in a 2015 buyout, which made it the global lithium leader.

Excluding that charge and other one-time items, Albemarle earned $1.05, well ahead of analysts' expected earnings of 77 cents per share, according to IBES data from Refinitiv.

The company opened its La Negra III/IV lithium production facility in Chile during the quarter and said it expects to finish construction on its Kemerton lithium production facility in Australia by the end of the year.

Albemarle also bought a lithium processor in China during the quarter, boosting its operations in the world's largest electric vehicle market.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Sales rose in the company's bromine division, which sells chemicals for fire extinguishers and other products, and fell in the catalysts division, which sells materials for oil refineries.

The Charlotte, North Carolina-based company is scheduled to hold a conference call with investors on Thursday morning to discuss the quarterly results.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.