CHARLOTTE, N.C. , May 9, 2018 /PRNewswire/ --, First quarter 2018 highlights:, First quarter net sales were $821.6 million , an increase of 14% over the prior year; earnings were $131.8 million , or $1.18 per diluted share, an increase of 162% over the prior year First quarter adjusted EBITDA was $248.7 million , an increase of 18% over the prior year; adjusted diluted earnings per share of $1.30 , an increase of 24% over the prior year Received approval from CORFO to…, Three Months Ended, , March 31,, In thousands, except per share amounts, 2018, , 2017, Net sales $ 821,629 $ 722,063 Net income attributable to Albemarle Corporation $ 131,760 $ 51,213 Adjusted EBITDA $ 248,718 $ 211,376 Diluted earnings per share $ 1.18 $ 0.45 Non-operating pension and OPEB items (a) (0.02) (0.01) Non-recurring and other unusual items (a) 0.14 0.61 Adjusted diluted earnings per share (b) $ 1.30 $ 1.05 See…, Outlook, With a strong start to 2018, we confirm our guidance, with an increase to our adjusted EPS outlook, as follows: , 2018 Outlook, , vs Full Year 2017, Net sales $3.2 - $3.4 billion 4% - 11% Adjusted EBITDA $955 - $1,005 million 8% - 14% Adjusted EPS (per diluted share) $5.10 - $5.40 11% - 18%, Results, First quarter 2018 earnings were $131.8 million , or $1.18 per diluted share, compared to $51.2 million , or $0.45 per diluted share in the first quarter 2017. The increase in 2018 was primarily driven by earnings growth of our Lithium segment and a loss on early extinguishment of debt of $0.34 per diluted share recorded in 2017. First quarter 2018 adjusted EBITDA increased by $37.3 million , or…, Quarterly Segment Results, During the first quarter of 2018, the PCS product category merged with the Refining Solutions reportable segment to form a global business focused on catalysts. As a result, our three reportable segments include: (1) Lithium; (2) Bromine Specialties; and (3) Catalysts. For comparison purposes, prior year periods have been reclassified to conform to the current presentation. Lithium reported net…, Corporate Results, Corporate adjusted EBITDA was a charge of $24.0 million in the first quarter of 2018 compared to a charge of $31.9 million in the first quarter of 2017. The increase in Corporate adjusted EBITDA was primarily due to lower selling, general and administrative spend and $1.7 million of favorable currency exchange impacts., Income Taxes, In December 2017 , the Tax Cuts and Jobs Act ("TCJA") was enacted, requiring companies, among other things, to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and reducing the U.S. federal corporate income tax rate from 35% to 21%. The SEC staff issued SAB 118, which will allow us to record provisional amounts during a measurement period…, Cash Flow, Our cash from operations was approximately $121.6 million for the three months ended March 31, 2018, an increase of $39.0 million versus the same period in 2017, primarily due to increased earnings in our Lithium segment and increased dividends received from unconsolidated investments. We had $692.2 million in cash and cash equivalents at March 31, 2018, as compared to $1.14 billion at December…, Earnings Call, The Company's performance for the first quarter ended March 31, 2018 will be discussed on a conference call at 9:00 AM Eastern time on May 10, 2018. The call can be accessed by dialing 888-268-4181 (International Dial-In # 617-597-5486), and entering conference ID 86509150. The Company's earnings presentation and supporting material can be accessed through Albemarle's website under Investors at, www.albemarle.com, ., About Albemarle, Albemarle Corporation (NYSE: ALB), headquartered in Charlotte, NC , is a global specialty chemicals company with leading positions in lithium, bromine and refining catalysts. We power the potential of companies in many of the world's largest and most critical industries, from energy and communications to transportation and electronics. Working side-by-side with our customers, we develop value-…, Forward-Looking Statements, Some of the information presented in this press release, the conference call and discussions that follow, including, without limitation, product development, changes in productivity, market trends, price, expected growth, earnings and demand for our products, input costs, surcharges, tax rates, stock repurchases, dividends, cash flow generation, costs and cost synergies, portfolio diversification…, Three Months Ended, , March 31,, , 2018, , 2017, Net sales, $ 821,629 $ 722,063 Cost of goods sold 516,650 467,107 , Gross profit, 304,979 254,956 Selling, general and administrative expenses 101,370 108,928 Research and development expenses 20,986 24,323 , Operating profit, 182,623 121,705 Interest and financing expenses (13,538) (68,513) Other (expenses) income, net (30,476) 265 Income before income taxes and equity in net income of unconsolidated investments 138,609 53,457 Income tax expense 20,361 11,971 Income before equity in net income of unconsolidated investments 118,248 41,486 Equity in net income of unconsolidated…, March 31,, , December 31,, , 2018, , 2017, ASSETS, Cash and cash equivalents $ 692,188 $ 1,137,303 Other current assets 1,430,708 1,301,108 Assets held for sale 35,829 39,152 Total current assets 2,158,725 2,477,563 Property, plant and equipment 4,247,345 4,124,335 Less accumulated depreciation and amortization 1,678,139 1,631,025 Net property, plant and equipment 2,569,206 2,493,310 Noncurrent…, LIABILITIES AND EQUITY, Current portion of long-term debt $ 39,216 $ 422,012 Other current liabilities 827,471 776,975 Liabilities held for sale 2,173 1,938 Total current liabilities 868,860 1,200,925 Long-term debt 1,436,852 1,415,360 Noncurrent liabilities held for sale 682 614 Other noncurrent liabilities 937,401 945,788 Deferred income taxes 369,115 370,389 …, Three Months Ended, , March 31,, , 2018, , 2017, Cash and cash equivalents at beginning of year $ 1,137,303 $ 2,269,756 Cash and cash equivalents at end of period $ 692,188 $ 1,254,536 , Sources of cash and cash equivalents:, Net income $ 138,925 $ 62,657 Other borrowings, net — 66,384 Dividends received from unconsolidated investments and nonmarketable securities 25,462 2,551 Proceeds from exercise of stock options 646 2,170 , Uses of cash and cash equivalents:, Working capital changes (95,050) (63,325) Capital expenditures (131,815) (54,143) Acquisitions, net of cash acquired — (27,742) Repayments of long-term debt — (751,209) Repurchases of common stock — (250,000) Repayments of other borrowings, net (381,159) — Pension and postretirement contributions (3,548) (2,891) Dividends paid to shareholders (35,…, Non-cash and other items:, Depreciation and amortization 50,330 45,070 Gain on acquisition — (7,433) Pension and postretirement benefit (890) (26) Loss on early extinguishment of debt — 52,801 Deferred income taxes 29,067 1,363 Equity in net income of unconsolidated investments (net of tax) (20,677) (21,171) See accompanying notes to the condensed consolidated financial…, Additional Information, It should be noted that adjusted net income attributable to Albemarle Corporation , adjusted diluted earnings per share, non-operating pension and OPEB items per diluted share, non-recurring and other unusual items per diluted share, adjusted effective income tax rates, EBITDA, adjusted EBITDA, EBITDA margin and adjusted EBITDA margin are financial measures that are not required by, or presented…, www.albemarle.com ., The Company does not provide a reconciliation of forward looking non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP, as the Company is unable to estimate significant non-recurring or unusual items without unreasonable effort. The amounts and timing of these items are uncertain and could be material to the Company's…, Three Months Ended, , March 31,, , 2018, , 2017, Net sales:, Lithium $ 298,032 $ 216,229 Bromine Specialties 225,639 219,191 Catalysts 260,717 253,558 All Other 37,165 32,419 Corporate 76 666 Total net sales $ 821,629 $ 722,063 , Adjusted EBITDA:, Lithium $ 131,014 $ 99,852 Bromine Specialties 69,969 68,488 Catalysts 67,830 69,749 All Other 3,862 5,156 Corporate (23,957) (31,869) Total adjusted EBITDA $ 248,718 $ 211,376 See accompanying non-GAAP reconciliations below. , ALBEMARLE CORPORATION AND SUBSIDIARIES, Non-GAAP Reconciliations, (Unaudited), See below for a reconciliation of adjusted net income attributable to Albemarle Corporation , EBITDA and adjusted EBITDA, the non-GAAP financial measures, to Net income attributable to Albemarle Corporation ("earnings"), the most directly comparable financial measure calculated and reported in accordance with GAAP. Adjusted earnings is defined as earnings before the non-recurring, other unusual…, Three Months Ended, , March 31,, In thousands, except percentages and per share amounts, 2018, , 2017, Net income attributable to Albemarle Corporation $ 131,760 $ 51,213 Add back: Non-operating pension and OPEB items (net of tax) (1,866) (810) Non-recurring and other unusual items (net of tax) 15,319 68,605 Adjusted net income attributable to Albemarle Corporation $ 145,213 $ 119,008 Adjusted diluted earnings per share $ 1.30 $ 1.05 Weighted-…, EBITDA, 215,989 176,767 Non-operating pension and OPEB items (2,197) (1,063) Non-recurring and other unusual items (excluding items associated with interest expense) 34,926 35,672 , Adjusted EBITDA, $ 248,718 $ 211,376 Net sales $ 821,629 $ 722,063 EBITDA margin 26.3 % 24.5 % Adjusted EBITDA margin 30.3 % 29.3 % See below for a reconciliation of adjusted EBITDA on a segment basis, the non-GAAP financial measure, to Net income attributable to Albemarle Corporation , the most directly comparable financial measure calculated and reporting in accordance with GAAP (in…, Lithium, , Bromine Specialties, , Catalysts, , Reportable Segments Total, , All Other, , Corporate, , Consolidated Total, , % of Net Sales, Three months ended March 31, 2018:, Net income (loss) attributable to Albemarle Corporation $ 108,334 $ 59,536 $ 55,660 $ 223,530 $ 1,760 $ (93,530) $ 131,760 16.0 % Depreciation and amortization 24,065 10,433 12,170 46,668 2,102 1,560 50,330 6.1 % Non-recurring and other unusual items (1,385) — — (1,385) — 36,311 34,926…, Adjusted EBITDA, $ 131,014 $ 69,969 $ 67,830 $ 268,813 $ 3,862 $ (23,957) $ 248,718 30.3 % , Three months ended March 31, 2017:, Net income (loss) attributable to Albemarle Corporation $ 77,614 $ 58,694 $ 56,966 $ 193,274 $ 3,246 $ (145,307) $ 51,213 7.1 % Depreciation and amortization 19,065 9,794 12,783 41,642 1,910 1,518 45,070 6.2 % Non-recurring and other unusual items (excluding items associated with interest expense) 3,173…, Adjusted EBITDA, $ 99,852 $ 68,488 $ 69,749 $ 238,089 $ 5,156 $ (31,869) $ 211,376 29.3 % Non-operating pension and OPEB items, consisting of MTM actuarial gains/losses, settlements/curtailments, interest cost and expected return on assets, are not allocated to our operating segments and are included in the Corporate category. In addition, we believe that these components of pension…, Three Months Ended, , March 31,, , 2018, , 2017, Interest cost $ 8,569 $ 8,873 Expected return on assets (10,766) (9,936) Total $ (2,197) $ (1,063) In addition to the non-operating pension and OPEB items disclosed above, we have identified certain other items and excluded them from our adjusted net income calculation for the periods presented. A listing of these items, as well as a detailed description of each follows below…, Three Months Ended, , March 31,, , 2018, , 2017, Utilization of inventory markup (1) $ — $ 0.08 Restructuring and other, net (2) — 0.09 Acquisition and integration related costs (3) 0.02 0.11 Legal accrual (4) 0.12 — Gain on acquisition (5) — (0.05) Loss on extinguishment of debt (6) — 0.34 Other (7) 0.11 0.03 Discrete tax items (8) (0.11) 0.01 Total non-recurring and other unusual items $ 0.14…, Three Months Ended, , March 31, 2017, Restructuring and other costs:, Cost of goods sold $ 2.9 Selling, general and administrative expenses 4.2 Research and development expenses 5.8 Total $ 12.9 Total restructuring and other costs, after income taxes $ 10.2 Total restructuring and other costs, per diluted share $ 0.09 (3) Acquisition and integration related costs for the three months ended March 31, 2018 and 2017 related to various significant…, Three Months Ended, , March 31,, , 2018, , 2017, Acquisition and integration related costs:, Cost of goods sold $ 1.0 $ 8.9 Selling, general and administrative expenses 1.2 5.4 Total $ 2.2 $ 14.3 Total acquisition and integration related costs, after income taxes $ 1.9 $ 12.8 Total acquisition and integration related costs, per diluted share $ 0.02 $ 0.11 (4) Included in Other (expenses) income, net, for the three months ended March 31, 2018 is a $17…, Income before income taxes and equity in net income of unconsolidated investments, , Income tax expense, , Effective income tax rate, Three months ended March 31, 2018:, As reported $ 138,609 $ 20,361 14.7% Non-recurring, other unusual and non-operating pension and OPEB items 32,729 19,276 As adjusted $ 171,338 $ 39,637 23.1% , Three months ended March 31, 2017:, As reported $ 53,457 $ 11,971 22.4% Non-recurring, other unusual and non-operating pension and OPEB items 87,410 19,615 As adjusted $ 140,867 $ 31,586 22.4% View original content with multimedia: http://www.prnewswire.com/news-releases/albemarle-continues-double-digit-growth-in-first-quarter-on-strong-lithium-results-300645727.html SOURCE Albemarle…
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