These terms and conditions govern your use of the website alphaminr.com and its related services.
These Terms and Conditions (“Terms”) are a binding contract between you and Alphaminr, (“Alphaminr”, “we”, “us” and “service”). You must agree to and accept the Terms. These Terms include the provisions in this document as well as those in the Privacy Policy. These terms may be modified at any time.
Your subscription will be on a month to month basis and automatically renew every month. You may terminate your subscription at any time through your account.
We will provide you with advance notice of any change in fees.
You represent that you are of legal age to form a binding contract. You are responsible for any
activity associated with your account. The account can be logged in at only one computer at a
time.
The Services are intended for your own individual use. You shall only use the Services in a
manner that complies with all laws. You may not use any automated software, spider or system to
scrape data from Alphaminr.
Alphaminr is not a financial advisor and does not provide financial advice of any kind. The service is provided “As is”. The materials and information accessible through the Service are solely for informational purposes. While we strive to provide good information and data, we make no guarantee or warranty as to its accuracy.
TO THE EXTENT PERMITTED BY APPLICABLE LAW, UNDER NO CIRCUMSTANCES SHALL ALPHAMINR BE LIABLE TO YOU FOR DAMAGES OF ANY KIND, INCLUDING DAMAGES FOR INVESTMENT LOSSES, LOSS OF DATA, OR ACCURACY OF DATA, OR FOR ANY AMOUNT, IN THE AGGREGATE, IN EXCESS OF THE GREATER OF (1) FIFTY DOLLARS OR (2) THE AMOUNTS PAID BY YOU TO ALPHAMINR IN THE SIX MONTH PERIOD PRECEDING THIS APPLICABLE CLAIM. SOME STATES DO NOT ALLOW THE EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUENTIAL OR CERTAIN OTHER DAMAGES, SO THE ABOVE LIMITATION AND EXCLUSIONS MAY NOT APPLY TO YOU.
If any provision of these Terms is found to be invalid under any applicable law, such provision shall not affect the validity or enforceability of the remaining provisions herein.
This privacy policy describes how we (“Alphaminr”) collect, use, share and protect your personal information when we provide our service (“Service”). This Privacy Policy explains how information is collected about you either directly or indirectly. By using our service, you acknowledge the terms of this Privacy Notice. If you do not agree to the terms of this Privacy Policy, please do not use our Service. You should contact us if you have questions about it. We may modify this Privacy Policy periodically.
When you register for our Service, we collect information from you such as your name, email address and credit card information.
Like many other websites we use “cookies”, which are small text files that are stored on your computer or other device that record your preferences and actions, including how you use the website. You can set your browser or device to refuse all cookies or to alert you when a cookie is being sent. If you delete your cookies, if you opt-out from cookies, some Services may not function properly. We collect information when you use our Service. This includes which pages you visit.
We use Google Analytics and we use Stripe for payment processing. We will not share the information we collect with third parties for promotional purposes. We may share personal information with law enforcement as required or permitted by law.
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
VIRGINIA
|
|
54-1692118
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
4350 CONGRESS STREET, SUITE 700
CHARLOTTE, NORTH CAROLINA
|
|
28209
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Large accelerated filer
|
|
x
|
|
Accelerated filer
|
|
¨
|
Non-accelerated filer
|
|
¨
|
|
Smaller reporting company
|
|
¨
|
|
|
|
|
Emerging growth company
|
|
¨
|
|
|
|
|
|
Page
Number(s)
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
8-23
|
|
|
|
|
23-36
|
||
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
EXHIBITS
|
|
|
Item 1.
|
Financial Statements (Unaudited).
|
|
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 investments (net of tax)
|
20,677
|
|
|
21,171
|
|
||
Net income
|
138,925
|
|
|
62,657
|
|
||
Net income attributable to noncontrolling interests
|
(7,165
|
)
|
|
(11,444
|
)
|
||
Net income attributable to Albemarle Corporation
|
$
|
131,760
|
|
|
$
|
51,213
|
|
Basic earnings per share
|
$
|
1.19
|
|
|
$
|
0.46
|
|
Diluted earnings per share
|
$
|
1.18
|
|
|
$
|
0.45
|
|
Weighted-average common shares outstanding – basic
|
110,681
|
|
|
111,986
|
|
||
Weighted-average common shares outstanding – diluted
|
111,867
|
|
|
113,289
|
|
||
Cash dividends declared per share of common stock
|
$
|
0.335
|
|
|
$
|
0.32
|
|
|
Three Months Ended
March 31, |
||||||
|
2018
|
|
2017
|
||||
Net income
|
$
|
138,925
|
|
|
$
|
62,657
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
||||
Foreign currency translation
|
64,891
|
|
|
79,055
|
|
||
Pension and postretirement benefits
|
3
|
|
|
(7
|
)
|
||
Net investment hedge
|
(14,421
|
)
|
|
(13,685
|
)
|
||
Interest rate swap
|
642
|
|
|
529
|
|
||
Total other comprehensive income, net of tax
|
51,115
|
|
|
65,892
|
|
||
Comprehensive income
|
190,040
|
|
|
128,549
|
|
||
Comprehensive income attributable to noncontrolling interests
|
(7,351
|
)
|
|
(11,905
|
)
|
||
Comprehensive income attributable to Albemarle Corporation
|
$
|
182,689
|
|
|
$
|
116,644
|
|
|
March 31,
|
|
December 31,
|
||||
|
2018
|
|
2017
|
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
692,188
|
|
|
$
|
1,137,303
|
|
Trade accounts receivable, less allowance for doubtful accounts (2018 – $10,098; 2017 – $10,425)
|
606,968
|
|
|
534,326
|
|
||
Other accounts receivable
|
43,410
|
|
|
37,937
|
|
||
Inventories
|
666,567
|
|
|
592,781
|
|
||
Other current assets
|
113,763
|
|
|
136,064
|
|
||
Assets held for sale
|
35,829
|
|
|
39,152
|
|
||
Total current assets
|
2,158,725
|
|
|
2,477,563
|
|
||
Property, plant and equipment, at cost
|
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
|
|
||
Investments
|
524,687
|
|
|
534,064
|
|
||
Noncurrent assets held for sale
|
151,743
|
|
|
139,813
|
|
||
Other assets
|
78,619
|
|
|
74,164
|
|
||
Goodwill
|
1,643,746
|
|
|
1,610,355
|
|
||
Other intangibles, net of amortization
|
429,614
|
|
|
421,503
|
|
||
Total assets
|
$
|
7,556,340
|
|
|
$
|
7,750,772
|
|
Liabilities And Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
481,726
|
|
|
$
|
418,537
|
|
Accrued expenses
|
262,883
|
|
|
268,336
|
|
||
Current portion of long-term debt
|
39,216
|
|
|
422,012
|
|
||
Dividends payable
|
36,885
|
|
|
35,165
|
|
||
Liabilities held for sale
|
2,173
|
|
|
1,938
|
|
||
Income taxes payable
|
45,977
|
|
|
54,937
|
|
||
Total current liabilities
|
868,860
|
|
|
1,200,925
|
|
||
Long-term debt
|
1,436,852
|
|
|
1,415,360
|
|
||
Postretirement benefits
|
52,090
|
|
|
52,003
|
|
||
Pension benefits
|
296,671
|
|
|
294,611
|
|
||
Noncurrent liabilities held for sale
|
682
|
|
|
614
|
|
||
Other noncurrent liabilities
|
588,640
|
|
|
599,174
|
|
||
Deferred income taxes
|
369,115
|
|
|
370,389
|
|
||
Commitments and contingencies (Note 10)
|
|
|
|
||||
Equity:
|
|
|
|
||||
Albemarle Corporation shareholders’ equity:
|
|
|
|
||||
Common stock, $.01 par value, issued and outstanding – 110,756 in 2018 and 110,547 in 2017
|
1,107
|
|
|
1,105
|
|
||
Additional paid-in capital
|
1,855,321
|
|
|
1,863,949
|
|
||
Accumulated other comprehensive loss
|
(174,739
|
)
|
|
(225,668
|
)
|
||
Retained earnings
|
2,118,621
|
|
|
2,035,163
|
|
||
Total Albemarle Corporation shareholders’ equity
|
3,800,310
|
|
|
3,674,549
|
|
||
Noncontrolling interests
|
143,120
|
|
|
143,147
|
|
||
Total equity
|
3,943,430
|
|
|
3,817,696
|
|
||
Total liabilities and equity
|
$
|
7,556,340
|
|
|
$
|
7,750,772
|
|
(In Thousands, Except Share Data)
|
|
|
|
|
|
Additional
Paid-in Capital
|
|
Accumulated Other
Comprehensive (Loss) Income
|
|
Retained Earnings
|
|
Total Albemarle
Shareholders’ Equity
|
|
Noncontrolling
Interests
|
|
Total Equity
|
|||||||||||||||
Common Stock
|
|
||||||||||||||||||||||||||||||
|
Shares
|
|
Amounts
|
|
|
|
|
|
|
||||||||||||||||||||||
Balance at January 1, 2018
|
|
110,546,674
|
|
|
$
|
1,105
|
|
|
$
|
1,863,949
|
|
|
$
|
(225,668
|
)
|
|
$
|
2,035,163
|
|
|
$
|
3,674,549
|
|
|
$
|
143,147
|
|
|
$
|
3,817,696
|
|
Net income
|
|
|
|
|
|
|
|
|
|
131,760
|
|
|
131,760
|
|
|
7,165
|
|
|
138,925
|
|
|||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
50,929
|
|
|
|
|
50,929
|
|
|
186
|
|
|
51,115
|
|
|||||||||||
Cash dividends declared
|
|
|
|
|
|
|
|
|
|
(37,103
|
)
|
|
(37,103
|
)
|
|
(7,378
|
)
|
|
(44,481
|
)
|
|||||||||||
Cumulative adjustment from adoption of income tax standard update (Note 18)
|
|
|
|
|
|
|
|
|
|
(11,199
|
)
|
|
(11,199
|
)
|
|
|
|
(11,199
|
)
|
||||||||||||
Stock-based compensation and other
|
|
|
|
|
|
5,737
|
|
|
|
|
|
|
5,737
|
|
|
|
|
5,737
|
|
||||||||||||
Exercise of stock options
|
|
12,740
|
|
|
—
|
|
|
646
|
|
|
|
|
|
|
646
|
|
|
|
|
646
|
|
||||||||||
Issuance of common stock, net
|
|
319,440
|
|
|
3
|
|
|
(3
|
)
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
||||||||||
Shares withheld for withholding taxes associated with common stock issuances
|
|
(122,740
|
)
|
|
(1
|
)
|
|
(15,008
|
)
|
|
|
|
|
|
(15,009
|
)
|
|
|
|
(15,009
|
)
|
||||||||||
Balance at March 31, 2018
|
|
110,756,114
|
|
|
$
|
1,107
|
|
|
$
|
1,855,321
|
|
|
$
|
(174,739
|
)
|
|
$
|
2,118,621
|
|
|
$
|
3,800,310
|
|
|
$
|
143,120
|
|
|
$
|
3,943,430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance at January 1, 2017
|
|
112,523,790
|
|
|
$
|
1,125
|
|
|
$
|
2,084,418
|
|
|
$
|
(412,412
|
)
|
|
$
|
2,121,931
|
|
|
$
|
3,795,062
|
|
|
$
|
147,542
|
|
|
$
|
3,942,604
|
|
Net income
|
|
|
|
|
|
|
|
|
|
51,213
|
|
|
51,213
|
|
|
11,444
|
|
|
62,657
|
|
|||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
65,431
|
|
|
|
|
65,431
|
|
|
461
|
|
|
65,892
|
|
|||||||||||
Cash dividends declared
|
|
|
|
|
|
|
|
|
|
(35,441
|
)
|
|
(35,441
|
)
|
|
—
|
|
|
(35,441
|
)
|
|||||||||||
Stock-based compensation and other
|
|
|
|
|
|
3,945
|
|
|
|
|
|
|
3,945
|
|
|
|
|
3,945
|
|
||||||||||||
Exercise of stock options
|
|
37,146
|
|
|
—
|
|
|
2,170
|
|
|
|
|
|
|
2,170
|
|
|
|
|
2,170
|
|
||||||||||
Shares repurchased
|
|
(1,948,178
|
)
|
|
(19
|
)
|
|
(249,981
|
)
|
|
|
|
—
|
|
|
(250,000
|
)
|
|
|
|
(250,000
|
)
|
|||||||||
Issuance of common stock, net
|
|
225,559
|
|
|
2
|
|
|
(2
|
)
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
||||||||||
Termination of Tianqi Lithium Corporation option agreement
|
|
|
|
|
|
13,144
|
|
|
|
|
|
|
13,144
|
|
|
(13,144
|
)
|
|
—
|
|
|||||||||||
Shares withheld for withholding taxes associated with common stock issuances
|
|
(86,117
|
)
|
|
—
|
|
|
(7,855
|
)
|
|
|
|
|
|
(7,855
|
)
|
|
|
|
(7,855
|
)
|
||||||||||
Balance at March 31, 2017
|
|
110,752,200
|
|
|
$
|
1,108
|
|
|
$
|
1,845,839
|
|
|
$
|
(346,981
|
)
|
|
$
|
2,137,703
|
|
|
$
|
3,637,669
|
|
|
$
|
146,303
|
|
|
$
|
3,783,972
|
|
|
Three Months Ended
March 31, |
||||||
|
2018
|
|
2017
|
||||
Cash and cash equivalents at beginning of year
|
$
|
1,137,303
|
|
|
$
|
2,269,756
|
|
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
138,925
|
|
|
62,657
|
|
||
Adjustments to reconcile net income to cash flows from operating activities:
|
|
|
|
||||
Depreciation and amortization
|
50,330
|
|
|
45,070
|
|
||
Gain on acquisition
|
—
|
|
|
(7,433
|
)
|
||
Stock-based compensation
|
2,869
|
|
|
5,046
|
|
||
Equity in net income of unconsolidated investments (net of tax)
|
(20,677
|
)
|
|
(21,171
|
)
|
||
Dividends received from unconsolidated investments and nonmarketable securities
|
25,462
|
|
|
2,551
|
|
||
Pension and postretirement benefit
|
(890
|
)
|
|
(26
|
)
|
||
Pension and postretirement contributions
|
(3,548
|
)
|
|
(2,891
|
)
|
||
Unrealized gain on investments in marketable securities
|
(393
|
)
|
|
(873
|
)
|
||
Loss on early extinguishment of debt
|
—
|
|
|
52,801
|
|
||
Deferred income taxes
|
29,067
|
|
|
1,363
|
|
||
Working capital changes
|
(95,050
|
)
|
|
(63,325
|
)
|
||
Other, net
|
(4,541
|
)
|
|
8,816
|
|
||
Net cash provided by operating activities
|
121,554
|
|
|
82,585
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Acquisitions, net of cash acquired
|
—
|
|
|
(27,742
|
)
|
||
Capital expenditures
|
(131,815
|
)
|
|
(54,143
|
)
|
||
Sales of marketable securities, net
|
10
|
|
|
492
|
|
||
Repayments from joint ventures
|
—
|
|
|
1,250
|
|
||
Investments in equity and other corporate investments
|
(735
|
)
|
|
—
|
|
||
Net cash used in investing activities
|
(132,540
|
)
|
|
(80,143
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Repayments of long-term debt
|
—
|
|
|
(751,209
|
)
|
||
Other (repayments) borrowings, net
|
(381,159
|
)
|
|
66,384
|
|
||
Fees related to early extinguishment of debt
|
—
|
|
|
(46,959
|
)
|
||
Dividends paid to shareholders
|
(35,382
|
)
|
|
(34,330
|
)
|
||
Dividends paid to noncontrolling interests
|
(7,378
|
)
|
|
—
|
|
||
Repurchases of common stock
|
—
|
|
|
(250,000
|
)
|
||
Proceeds from exercise of stock options
|
646
|
|
|
2,170
|
|
||
Withholding taxes paid on stock-based compensation award distributions
|
(15,009
|
)
|
|
(7,855
|
)
|
||
Net cash used in financing activities
|
(438,282
|
)
|
|
(1,021,799
|
)
|
||
Net effect of foreign exchange on cash and cash equivalents
|
4,153
|
|
|
4,137
|
|
||
Decrease in cash and cash equivalents
|
(445,115
|
)
|
|
(1,015,220
|
)
|
||
Cash and cash equivalents at end of period
|
$
|
692,188
|
|
|
$
|
1,254,536
|
|
•
|
All sales and other pass-through taxes are excluded from contract value;
|
•
|
In utilizing the modified retrospective transition method, no adjustment would be necessary for contracts that do not cross over a reporting year;
|
•
|
We will not consider the possibility of a contract having a significant financing component (which would effectively attribute a portion of the sales price to interest income) unless, if at contract inception, the expected payment terms (from time of delivery or other relevant criterion) are more than one year;
|
•
|
If our right to customer payment is directly related to the value of our completed performance, we recognize revenue consistent with the invoicing right; and
|
•
|
We expense as incurred all costs of obtaining a contract incremental to any costs/compensation attributable to individual product sales/shipments for contracts where the amortization period for such costs would otherwise be one year or less.
|
|
March 31,
|
|
December 31,
|
||||
|
2018
|
|
2017
|
||||
Assets
|
|
|
|
||||
Current assets
|
$
|
35,829
|
|
|
$
|
39,152
|
|
Net, property, plant and equipment
|
133,506
|
|
|
121,759
|
|
||
Goodwill
|
14,422
|
|
|
14,422
|
|
||
Other intangibles, net of amortization
|
3,815
|
|
|
3,632
|
|
||
Assets held for sale
|
$
|
187,572
|
|
|
$
|
178,965
|
|
Liabilities
|
|
|
|
||||
Current liabilities
|
$
|
2,173
|
|
|
$
|
1,938
|
|
Noncurrent liabilities
|
682
|
|
|
614
|
|
||
Liabilities held for sale
|
$
|
2,855
|
|
|
$
|
2,552
|
|
|
Lithium
|
|
Bromine Specialties
|
|
Catalysts
|
|
All Other
|
|
Total
|
||||||||||
Balance at December 31, 2017
(a)(b)
|
$
|
1,389,089
|
|
|
$
|
20,319
|
|
|
$
|
194,361
|
|
|
$
|
6,586
|
|
|
$
|
1,610,355
|
|
Foreign currency translation adjustments and other
|
26,110
|
|
|
—
|
|
|
7,281
|
|
|
—
|
|
|
33,391
|
|
|||||
Balance at March 31, 2018
(b)
|
$
|
1,415,199
|
|
|
$
|
20,319
|
|
|
$
|
201,642
|
|
|
$
|
6,586
|
|
|
$
|
1,643,746
|
|
(a)
|
The
December 31, 2017
balances have been recast to reflect a change in segments. See Note 11, “Segment Information,” for additional information.
|
(b)
|
As of
March 31, 2018
and
December 31, 2017
,
$14.4 million
of Goodwill was classified as Assets held for sale in the condensed consolidated balance sheets. See Note 2, “Divestitures,” for additional information.
|
|
Customer Lists and Relationships
|
|
Trade Names and Trademarks
(a)
|
|
Patents and Technology
|
|
Other
|
|
Total
|
||||||||||
Gross Asset Value
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at December 31, 2017
|
$
|
439,312
|
|
|
$
|
18,981
|
|
|
$
|
61,618
|
|
|
$
|
37,256
|
|
|
$
|
557,167
|
|
Foreign currency translation adjustments and other
|
13,054
|
|
|
324
|
|
|
1,668
|
|
|
3,862
|
|
|
18,908
|
|
|||||
Balance at March 31, 2018
|
$
|
452,366
|
|
|
$
|
19,305
|
|
|
$
|
63,286
|
|
|
$
|
41,118
|
|
|
$
|
576,075
|
|
Accumulated Amortization
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at December 31, 2017
|
$
|
(74,704
|
)
|
|
$
|
(8,295
|
)
|
|
$
|
(35,203
|
)
|
|
$
|
(17,462
|
)
|
|
$
|
(135,664
|
)
|
Amortization
|
(5,962
|
)
|
|
—
|
|
|
(368
|
)
|
|
(1,088
|
)
|
|
(7,418
|
)
|
|||||
Foreign currency translation adjustments and other
|
(2,005
|
)
|
|
(102
|
)
|
|
(727
|
)
|
|
(545
|
)
|
|
(3,379
|
)
|
|||||
Balance at March 31, 2018
|
$
|
(82,671
|
)
|
|
$
|
(8,397
|
)
|
|
$
|
(36,298
|
)
|
|
$
|
(19,095
|
)
|
|
$
|
(146,461
|
)
|
Net Book Value at December 31, 2017
(b)
|
$
|
364,608
|
|
|
$
|
10,686
|
|
|
$
|
26,415
|
|
|
$
|
19,794
|
|
|
$
|
421,503
|
|
Net Book Value at March 31, 2018
(b)
|
$
|
369,695
|
|
|
$
|
10,908
|
|
|
$
|
26,988
|
|
|
$
|
22,023
|
|
|
$
|
429,614
|
|
(a)
|
Balances as of
March 31, 2018
and
December 31, 2017
include only indefinite-lived intangible assets.
|
(b)
|
As of
March 31, 2018
and
December 31, 2017
,
$3.8 million
and
$3.6 million
, respectively, of Other intangibles, net of amortization were classified as Assets held for sale in the condensed consolidated balance sheets. See Note 2, “Divestitures,” for additional information.
|
|
Three Months Ended
March 31, |
||||||
|
2018
|
|
2017
|
||||
Basic earnings per share
|
|
|
|
||||
Numerator:
|
|
|
|
||||
Net income attributable to Albemarle Corporation
|
$
|
131,760
|
|
|
$
|
51,213
|
|
Denominator:
|
|
|
|
||||
Weighted-average common shares for basic earnings per share
|
110,681
|
|
|
111,986
|
|
||
Basic earnings per share
|
$
|
1.19
|
|
|
$
|
0.46
|
|
|
|
|
|
||||
Diluted earnings per share
|
|
|
|
||||
Numerator:
|
|
|
|
||||
Net income attributable to Albemarle Corporation
|
$
|
131,760
|
|
|
$
|
51,213
|
|
Denominator:
|
|
|
|
||||
Weighted-average common shares for basic earnings per share
|
110,681
|
|
|
111,986
|
|
||
Incremental shares under stock compensation plans
|
1,186
|
|
|
1,303
|
|
||
Weighted-average common shares for diluted earnings per share
|
111,867
|
|
|
113,289
|
|
||
Diluted earnings per share
|
$
|
1.18
|
|
|
$
|
0.45
|
|
|
March 31,
|
|
December 31,
|
||||
|
2018
|
|
2017
|
||||
Finished goods
(a)
|
$
|
453,662
|
|
|
$
|
404,239
|
|
Raw materials and work in process
(b)
|
154,679
|
|
|
132,891
|
|
||
Stores, supplies and other
|
58,226
|
|
|
55,651
|
|
||
Total
(c)
|
$
|
666,567
|
|
|
$
|
592,781
|
|
(a)
|
Increase primarily due to the build up of inventory in our Catalysts segment due to the timing of net sales expected in the second quarter, and an increased net sales in the near term for our Lithium segment.
|
(b)
|
Increase primarily due to higher forecasted production levels in the second quarter from our Catalysts segment. Included
$66.2 million
and
$59.6 million
at
March 31, 2018
and
December 31, 2017
, respectively, of work in process related to the Lithium product category.
|
(c)
|
As of
March 31, 2018
and
December 31, 2017
,
$23.0 million
and
$24.7 million
, respectively, of Inventories were classified as Assets held for sale in the condensed consolidated balance sheets. See Note 2, “Divestitures,” for additional information.
|
|
March 31,
|
|
December 31,
|
||||
|
2018
|
|
2017
|
||||
1.875% Senior notes, net of unamortized discount and debt issuance costs of $3,859 at March 31, 2018 and $3,971 at December 31, 2017
|
$
|
482,567
|
|
|
$
|
463,575
|
|
4.15% Senior notes, net of unamortized discount and debt issuance costs of $3,250 at March 31, 2018 and $3,372 at December 31, 2017
|
421,750
|
|
|
421,628
|
|
||
4.50% Senior notes, net of unamortized discount and debt issuance costs of $815 at March 31, 2018 and $891 at December 31, 2017
|
174,401
|
|
|
174,325
|
|
||
5.45% Senior notes, net of unamortized discount and debt issuance costs of $4,120 at March 31, 2018 and $4,159 at December 31, 2017
|
345,880
|
|
|
345,841
|
|
||
Commercial paper notes
|
38,500
|
|
|
421,321
|
|
||
Variable-rate foreign bank loans
|
7,560
|
|
|
5,298
|
|
||
Other
|
5,410
|
|
|
5,384
|
|
||
Total long-term debt
|
1,476,068
|
|
|
1,837,372
|
|
||
Less amounts due within one year
|
39,216
|
|
|
422,012
|
|
||
Long-term debt, less current portion
|
$
|
1,436,852
|
|
|
$
|
1,415,360
|
|
Beginning balance at December 31, 2017
|
$
|
39,808
|
|
Expenditures
|
(2,612
|
)
|
|
Accretion of discount
|
225
|
|
|
Additions and revisions of estimates
|
16,236
|
|
|
Foreign currency translation adjustments
|
786
|
|
|
Ending balance at March 31, 2018
|
54,443
|
|
|
Less amounts reported in Accrued expenses
|
5,060
|
|
|
Amounts reported in Other noncurrent liabilities
|
$
|
49,383
|
|
|
Three Months Ended
March 31, |
||||||
|
2018
|
|
2017
|
||||
|
(In thousands)
|
||||||
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
|
|
|
Lithium
|
|
Bromine Specialties
|
|
Catalysts
|
|
Reportable Segments Total
|
|
All Other
|
|
Corporate
|
|
Consolidated Total
|
||||||||||||||
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
|
|
Depreciation and amortization
|
24,065
|
|
|
10,433
|
|
|
12,170
|
|
|
46,668
|
|
|
2,102
|
|
|
1,560
|
|
|
50,330
|
|
|||||||
Acquisition and integration related costs
(a)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,201
|
|
|
2,201
|
|
|||||||
Interest and financing expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,538
|
|
|
13,538
|
|
|||||||
Income tax expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,361
|
|
|
20,361
|
|
|||||||
Non-operating pension and OPEB items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,197
|
)
|
|
(2,197
|
)
|
|||||||
Legal accrual
(b)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,628
|
|
|
17,628
|
|
|||||||
Other
(c)
|
(1,385
|
)
|
|
—
|
|
|
—
|
|
|
(1,385
|
)
|
|
—
|
|
|
16,482
|
|
|
15,097
|
|
|||||||
Adjusted EBITDA
|
$
|
131,014
|
|
|
$
|
69,969
|
|
|
$
|
67,830
|
|
|
$
|
268,813
|
|
|
$
|
3,862
|
|
|
$
|
(23,957
|
)
|
|
$
|
248,718
|
|
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
|
|
Depreciation and amortization
|
19,065
|
|
|
9,794
|
|
|
12,783
|
|
|
41,642
|
|
|
1,910
|
|
|
1,518
|
|
|
45,070
|
|
|||||||
Utilization of inventory markup
(d)
|
10,606
|
|
|
—
|
|
|
—
|
|
|
10,606
|
|
|
—
|
|
|
—
|
|
|
10,606
|
|
|||||||
Restructuring and other, net
(e)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,905
|
|
|
12,905
|
|
|||||||
Gain on acquisition
(f)
|
(7,433
|
)
|
|
—
|
|
|
—
|
|
|
(7,433
|
)
|
|
—
|
|
|
—
|
|
|
(7,433
|
)
|
|||||||
Acquisition and integration related costs
(a)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,281
|
|
|
14,281
|
|
|||||||
Interest and financing expenses
(g)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
68,513
|
|
|
68,513
|
|
|||||||
Income tax expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,971
|
|
|
11,971
|
|
|||||||
Non-operating pension and OPEB items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,063
|
)
|
|
(1,063
|
)
|
|||||||
Other
(h)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,313
|
|
|
5,313
|
|
|||||||
Adjusted EBITDA
|
$
|
99,852
|
|
|
$
|
68,488
|
|
|
$
|
69,749
|
|
|
$
|
238,089
|
|
|
$
|
5,156
|
|
|
$
|
(31,869
|
)
|
|
$
|
211,376
|
|
(a)
|
Included amounts for the three-month periods ended March 31, 2018 and 2017 recorded in (1) Cost of goods sold of
$1.0 million
and
$8.9 million
, respectively; and (2) Selling, general and administrative expenses of
$1.2 million
and
$5.4 million
, respectively, relating to various significant projects, including the Jiangxi Jiangli New Materials Science and Technology Co. Ltd. (“Jiangli New Materials”) acquisition, which contains unusual compensation related costs negotiated specifically as a result of this acquisition that are outside of the Company’s normal compensation arrangements.
|
(b)
|
Included in Other (expenses) income, see Note 10, “Commitments and Contingencies” for additional information.
|
(c)
|
Included amounts for the three months ended March 31, 2018 recorded in:
|
▪
|
Cost of goods sold -
$1.1 million
related to the write-off of fixed assets in our JBC joint venture.
|
▪
|
Selling, general and administrative expenses -
$1.4 million
gain related to a refund from Chilean authorities due to an overpayment made in a prior year.
|
▪
|
Other (expenses) income, net -
$15.6 million
of environmental charges related to a site formerly owned by Albemarle, partially offset by a net gain of
$0.2 million
related to the the reversal of previously recorded expenses of disposed businesses.
|
(d)
|
In connection with the acquisition of Jiangli New Materials, the Company valued inventory purchased from Jiangli New Materials at fair value, which resulted in a markup of the underlying net book value of the inventory totaling approximately
$23.1 million
. The inventory markup was expensed over the estimated remaining selling period. For the three-month period ended March 31, 2017,
$10.6 million
was included in Cost of goods sold related to the utilization of the inventory markup.
|
(e)
|
During the first quarter of 2017, we initiated actions to reduce costs at several locations, primarily at our Lithium site in Germany. Based on the restructuring plans, we have recorded expenses of
$2.9 million
in Cost of goods sold,
$4.2 million
in Selling, general and administrative expenses and
$5.8 million
in Research and development expenses, primarily related to severance, expected to be incurred. The unpaid balance is recorded in Accrued expenses at March 31, 2018, with the expectation that the majority of these plans will be completed by the end of 2018.
|
(f)
|
Gain recorded in Other (expenses) income, net related to the acquisition of the remaining
50%
interest in the Sales de Magnesio Ltda. joint venture in Chile. The calculation of the initial gain recorded during the three months ended March 31, 2017 was based on management’s preliminary estimates and assumptions available at that time.
|
(g)
|
During the first quarter of 2017, we repaid the
3.00%
Senior notes in full,
€307.0 million
of the
1.875%
Senior notes and
$174.7 million
of the
4.50%
Senior notes, as well as related tender premiums of
$45.2 million
. As a result, included in Interest and financing expenses is
|
(h)
|
Included in Other (expenses) income, net are
$3.2 million
of asset retirement obligation charges related to the revision of an estimate at a site formerly owned by Albemarle and a loss of
$2.1 million
associated with the previous disposal of a business.
|
|
Three Months Ended
March 31, |
||||||
|
2018
|
|
2017
|
||||
Pension Benefits Cost (Credit):
|
|
|
|
||||
Service cost
|
$
|
1,268
|
|
|
$
|
1,003
|
|
Interest cost
|
8,027
|
|
|
8,288
|
|
||
Expected return on assets
|
(10,764
|
)
|
|
(9,908
|
)
|
||
Amortization of prior service benefit
|
22
|
|
|
27
|
|
||
Total net pension benefits credit
|
$
|
(1,447
|
)
|
|
$
|
(590
|
)
|
Postretirement Benefits Cost (Credit):
|
|
|
|
||||
Service cost
|
$
|
29
|
|
|
$
|
31
|
|
Interest cost
|
542
|
|
|
585
|
|
||
Expected return on assets
|
(2
|
)
|
|
(28
|
)
|
||
Amortization of prior service benefit
|
(12
|
)
|
|
(24
|
)
|
||
Total net postretirement benefits cost
|
$
|
557
|
|
|
$
|
564
|
|
Total net pension and postretirement benefits credit
|
$
|
(890
|
)
|
|
$
|
(26
|
)
|
|
March 31, 2018
|
|
December 31, 2017
|
||||||||||||
|
Recorded
Amount
|
|
Fair Value
|
|
Recorded
Amount
|
|
Fair Value
|
||||||||
|
(In thousands)
|
||||||||||||||
Long-term debt
|
$
|
1,483,794
|
|
|
$
|
1,553,114
|
|
|
$
|
1,845,309
|
|
|
$
|
1,949,638
|
|
Level 1
|
Unadjusted quoted prices in active markets for identical assets or liabilities
|
|
|
Level 2
|
Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability
|
|
|
Level 3
|
Unobservable inputs for the asset or liability
|
|
March 31, 2018
|
|
Quoted Prices in Active Markets for Identical Items (Level 1)
|
|
Quoted Prices in Active Markets for Similar Items (Level 2)
|
|
Unobservable Inputs (Level 3)
|
||||||||
|
|
|
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Investments under executive deferred compensation plan
(a)
|
$
|
25,878
|
|
|
$
|
25,878
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Private equity securities
(b)
|
$
|
37
|
|
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Private equity securities measured at net asset value
(b)(c)
|
$
|
5,117
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Obligations under executive deferred compensation plan
(a)
|
$
|
25,878
|
|
|
$
|
25,878
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Foreign currency forward contracts
(d)
|
$
|
241
|
|
|
$
|
—
|
|
|
$
|
241
|
|
|
$
|
—
|
|
|
December 31, 2017
|
|
Quoted Prices in Active Markets for Identical Items (Level 1)
|
|
Quoted Prices in Active Markets for Similar Items (Level 2)
|
|
Unobservable Inputs (Level 3)
|
||||||||
|
|
|
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Investments under executive deferred compensation plan
(a)
|
$
|
25,494
|
|
|
$
|
25,494
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Private equity securities
(b)
|
$
|
38
|
|
|
$
|
38
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Private equity securities measured at net asset value
(b)(c)
|
$
|
5,121
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Obligations under executive deferred compensation plan
(a)
|
$
|
25,494
|
|
|
$
|
25,494
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Foreign currency forward contracts
(d)
|
$
|
4,954
|
|
|
$
|
—
|
|
|
$
|
4,954
|
|
|
$
|
—
|
|
(a)
|
We maintain an Executive Deferred Compensation Plan (“EDCP”) that was adopted in 2001 and subsequently amended. The purpose of the EDCP is to provide current tax planning opportunities as well as supplemental funds upon the retirement or death of certain of our employees. The EDCP is intended to aid in attracting and retaining employees of exceptional ability by providing them with these benefits. We also maintain a Benefit Protection Trust (the “Trust”) that was created to provide a source of funds to assist in meeting the obligations of the EDCP, subject to the claims of our creditors in the event of our insolvency. Assets of the Trust are consolidated in accordance with authoritative guidance. The assets of the Trust consist primarily of mutual fund investments (which are accounted for as trading securities and are marked-to-market on a monthly basis through the consolidated statements of income) and cash and cash equivalents. As such, these assets and obligations are classified within Level 1.
|
(b)
|
Primarily consists of private equity securities classified as available-for-sale and are reported in Investments in the condensed consolidated balance sheets. The changes in fair value are reported in Other (expenses) income, net, in our consolidated statements of income.
|
(c)
|
Holdings in certain private equity securities are measured at fair value using the net asset value per share (or its equivalent) practical expedient and have not been categorized in the fair value hierarchy.
|
(d)
|
As a result of our global operating and financing activities, we are exposed to market risks from changes in foreign currency exchange rates, which may adversely affect our operating results and financial position. When deemed appropriate, we minimize our risks from foreign currency exchange rate fluctuations through the use of foreign currency forward contracts. Unless otherwise noted, these derivative financial instruments are not designated as hedging instruments under ASC 815,
Derivatives and Hedging
. The foreign currency forward contracts are valued using broker quotations or market transactions in either the listed or over-the-counter markets. As such, these derivative instruments are classified within Level 2.
|
|
Foreign Currency Translation
|
|
Pension and Postretirement Benefits
(a)
|
|
Net Investment Hedge
|
|
Interest Rate Swap
(b)
|
|
Total
|
||||||||||
Three months ended March 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at December 31, 2017
|
$
|
(257,569
|
)
|
|
$
|
(21
|
)
|
|
$
|
46,551
|
|
|
$
|
(14,629
|
)
|
|
$
|
(225,668
|
)
|
Other comprehensive income (loss) before reclassifications
|
64,891
|
|
|
—
|
|
|
(14,421
|
)
|
|
—
|
|
|
50,470
|
|
|||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
|
3
|
|
|
—
|
|
|
642
|
|
|
645
|
|
|||||
Other comprehensive income (loss), net of tax
|
64,891
|
|
|
3
|
|
|
(14,421
|
)
|
|
642
|
|
|
51,115
|
|
|||||
Other comprehensive income attributable to noncontrolling interests
|
(186
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(186
|
)
|
|||||
Balance at March 31, 2018
|
$
|
(192,864
|
)
|
|
$
|
(18
|
)
|
|
$
|
32,130
|
|
|
$
|
(13,987
|
)
|
|
$
|
(174,739
|
)
|
Three months ended March 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at December 31, 2016
|
$
|
(484,121
|
)
|
|
$
|
76
|
|
|
$
|
88,378
|
|
|
$
|
(16,745
|
)
|
|
$
|
(412,412
|
)
|
Other comprehensive income (loss) before reclassifications
|
79,055
|
|
|
—
|
|
|
(13,685
|
)
|
|
—
|
|
|
65,370
|
|
|||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
529
|
|
|
522
|
|
|||||
Other comprehensive income (loss), net of tax
|
79,055
|
|
|
(7
|
)
|
|
(13,685
|
)
|
|
529
|
|
|
65,892
|
|
|||||
Other comprehensive income attributable to noncontrolling interests
|
(461
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(461
|
)
|
|||||
Balance at March 31, 2017
|
$
|
(405,527
|
)
|
|
$
|
69
|
|
|
$
|
74,693
|
|
|
$
|
(16,216
|
)
|
|
$
|
(346,981
|
)
|
(a)
|
The pre-tax portion of amounts reclassified from accumulated other comprehensive loss consists of amortization of prior service benefit, which is a component of pension and postretirement benefits credit. See Note 12, “Pension Plans and Other Postretirement Benefits.”
|
(b)
|
The pre-tax portion of amounts reclassified from accumulated other comprehensive loss is included in interest expense.
|
|
Three Months Ended March 31,
|
||||||||||||||||||||||||||||||
|
2018
|
|
2017
|
||||||||||||||||||||||||||||
|
Foreign Currency Translation
|
|
Pension and Postretirement Benefits
|
|
Net Investment Hedge
|
|
Interest Rate Swap
|
|
Foreign Currency Translation
|
|
Pension and Postretirement Benefits
|
|
Net Investment Hedge
|
|
Interest Rate Swap
|
||||||||||||||||
Other comprehensive income (loss), before tax
|
$
|
64,891
|
|
|
$
|
3
|
|
|
$
|
(18,734
|
)
|
|
$
|
834
|
|
|
$
|
80,141
|
|
|
$
|
(6
|
)
|
|
$
|
(21,580
|
)
|
|
$
|
834
|
|
Income tax benefit (expense)
|
—
|
|
|
—
|
|
|
4,313
|
|
|
(192
|
)
|
|
(1,086
|
)
|
|
(1
|
)
|
|
7,895
|
|
|
(305
|
)
|
||||||||
Other comprehensive income (loss), net of tax
|
$
|
64,891
|
|
|
$
|
3
|
|
|
$
|
(14,421
|
)
|
|
$
|
642
|
|
|
$
|
79,055
|
|
|
$
|
(7
|
)
|
|
$
|
(13,685
|
)
|
|
$
|
529
|
|
|
Three Months Ended
March 31, |
||||||
|
2018
|
|
2017
|
||||
Sales to unconsolidated affiliates
|
$
|
4,605
|
|
|
$
|
7,189
|
|
Purchases from unconsolidated affiliates
|
$
|
68,916
|
|
|
$
|
40,570
|
|
|
March 31, 2018
|
|
December 31, 2017
|
||||
Receivable from related parties
|
$
|
2,184
|
|
|
$
|
2,406
|
|
Payable to related parties
|
$
|
67,244
|
|
|
$
|
55,801
|
|
|
Three Months Ended
March 31, |
||||||
|
2018
|
|
2017
|
||||
Supplemental non-cash disclosure related to investing activities:
|
|
|
|
||||
Capital expenditures included in Accounts payable
|
$
|
74,906
|
|
|
$
|
18,874
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
|
•
|
changes in economic and business conditions;
|
•
|
changes in financial and operating performance of our major customers and industries and markets served by us;
|
•
|
the timing of orders received from customers;
|
•
|
the gain or loss of significant customers;
|
•
|
competition from other manufacturers;
|
•
|
changes in the demand for our products or the end-user markets in which our products are sold;
|
•
|
limitations or prohibitions on the manufacture and sale of our products;
|
•
|
availability of raw materials;
|
•
|
increases in the cost of raw materials and energy, and our ability to pass through such increases to our customers;
|
•
|
changes in our markets in general;
|
•
|
fluctuations in foreign currencies;
|
•
|
changes in laws and government regulation impacting our operations or our products;
|
•
|
the occurrence of regulatory proceedings, claims or litigation;
|
•
|
the occurrence of cyber-security breaches, terrorist attacks, industrial accidents, natural disasters or climate change;
|
•
|
hazards associated with chemicals manufacturing;
|
•
|
the inability to maintain current levels of product or premises liability insurance or the denial of such coverage;
|
•
|
political unrest affecting the global economy, including adverse effects from terrorism or hostilities;
|
•
|
political instability affecting our manufacturing operations or joint ventures;
|
•
|
changes in accounting standards;
|
•
|
the inability to achieve results from our global manufacturing cost reduction initiatives as well as our ongoing continuous improvement and rationalization programs;
|
•
|
changes in the jurisdictional mix of our earnings and changes in tax laws and rates;
|
•
|
changes in monetary policies, inflation or interest rates that may impact our ability to raise capital or increase our cost of funds, impact the performance of our pension fund investments and increase our pension expense and funding obligations;
|
•
|
volatility and uncertainties in the debt and equity markets;
|
•
|
technology or intellectual property infringement, including cyber-security breaches, and other innovation risks;
|
•
|
decisions we may make in the future;
|
•
|
the ability to successfully execute, operate and integrate acquisitions and divestitures; and
|
•
|
the other factors detailed from time to time in the reports we file with the SEC.
|
•
|
We received approval from Chile’s Economic Development Agency (“CORFO”) for an increase in our lithium quota to sustainably increase lithium production in Chile to as much as 145,000 metric tons of lithium carbonate equivalent annually through 2043.
|
•
|
We repaid a net amount of
$382.8 million
of commercial paper notes using a portion of the
$611.3 million
in cash repatriations.
|
•
|
Our board of directors declared a quarterly dividend of
$0.335
per share on
February 23, 2018
, which was paid on
April 2, 2018
to shareholders of record at the close of business as of
March 15, 2018
.
|
•
|
Our net sales for the quarter were
$821.6 million
, up
14%
from net sales of
$722.1 million
in the
first
quarter of
2017
.
|
•
|
Earnings per share were
$1.18
(on a diluted basis), an increase from
first
quarter
2017
results of
$0.45
per diluted share.
|
•
|
Cash provided by operating activities was
$121.6 million
in the
first
quarter, an increase from
$82.6 million
in the
first
quarter 2017.
|
|
Three Months Ended March 31,
|
|
Percentage Change
|
|||||||
|
2018
|
|
2017
|
|
2018 vs. 2017
|
|||||
|
(In thousands, except percentages and per share amounts)
|
|||||||||
NET SALES
|
$
|
821,629
|
|
|
$
|
722,063
|
|
|
14
|
%
|
Cost of goods sold
|
516,650
|
|
|
467,107
|
|
|
11
|
%
|
||
GROSS PROFIT
|
304,979
|
|
|
254,956
|
|
|
20
|
%
|
||
GROSS PROFIT MARGIN
|
37.1
|
%
|
|
35.3
|
%
|
|
|
|||
Selling, general and administrative expenses
|
101,370
|
|
|
108,928
|
|
|
(7
|
)%
|
||
Research and development expenses
|
20,986
|
|
|
24,323
|
|
|
(14
|
)%
|
||
OPERATING PROFIT
|
182,623
|
|
|
121,705
|
|
|
50
|
%
|
||
OPERATING PROFIT MARGIN
|
22.2
|
%
|
|
16.9
|
%
|
|
|
|||
Interest and financing expenses
|
(13,538
|
)
|
|
(68,513
|
)
|
|
(80
|
)%
|
||
Other (expenses) income, net
|
(30,476
|
)
|
|
265
|
|
|
*
|
|
||
INCOME BEFORE INCOME TAXES AND EQUITY IN NET INCOME OF UNCONSOLIDATED INVESTMENTS
|
138,609
|
|
|
53,457
|
|
|
159
|
%
|
||
Income tax expense
|
20,361
|
|
|
11,971
|
|
|
70
|
%
|
||
Effective tax rate
|
14.7
|
%
|
|
22.4
|
%
|
|
|
|||
INCOME BEFORE EQUITY IN NET INCOME OF UNCONSOLIDATED INVESTMENTS
|
118,248
|
|
|
41,486
|
|
|
185
|
%
|
||
Equity in net income of unconsolidated investments (net of tax)
|
20,677
|
|
|
21,171
|
|
|
(2
|
)%
|
||
NET INCOME
|
138,925
|
|
|
62,657
|
|
|
122
|
%
|
||
Net income attributable to noncontrolling interests
|
(7,165
|
)
|
|
(11,444
|
)
|
|
(37
|
)%
|
||
NET INCOME ATTRIBUTABLE TO ALBEMARLE CORPORATION
|
$
|
131,760
|
|
|
$
|
51,213
|
|
|
157
|
%
|
PERCENTAGE OF NET SALES
|
16.0
|
%
|
|
7.1
|
%
|
|
|
|||
Basic earnings per share
|
$
|
1.19
|
|
|
$
|
0.46
|
|
|
159
|
%
|
Diluted earnings per share
|
$
|
1.18
|
|
|
$
|
0.45
|
|
|
162
|
%
|
|
Three Months Ended March 31,
|
|
Percentage Change
|
|||||||||||||
|
2018
|
|
%
|
|
2017
|
|
%
|
|
2018 vs. 2017
|
|||||||
|
(In thousands, except percentages)
|
|||||||||||||||
Net sales:
|
|
|
|
|
|
|
|
|
|
|||||||
Lithium
|
$
|
298,032
|
|
|
36.3
|
%
|
|
$
|
216,229
|
|
|
30.0
|
%
|
|
38
|
%
|
Bromine Specialties
|
225,639
|
|
|
27.5
|
%
|
|
219,191
|
|
|
30.4
|
%
|
|
3
|
%
|
||
Catalysts
|
260,717
|
|
|
31.7
|
%
|
|
253,558
|
|
|
35.1
|
%
|
|
3
|
%
|
||
All Other
|
37,165
|
|
|
4.5
|
%
|
|
32,419
|
|
|
4.4
|
%
|
|
15
|
%
|
||
Corporate
|
76
|
|
|
—
|
%
|
|
666
|
|
|
0.1
|
%
|
|
(89
|
)%
|
||
Total net sales
|
$
|
821,629
|
|
|
100.0
|
%
|
|
$
|
722,063
|
|
|
100.0
|
%
|
|
14
|
%
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|||||||
Lithium
|
$
|
131,014
|
|
|
52.7
|
%
|
|
$
|
99,852
|
|
|
47.3
|
%
|
|
31
|
%
|
Bromine Specialties
|
69,969
|
|
|
28.1
|
%
|
|
68,488
|
|
|
32.4
|
%
|
|
2
|
%
|
||
Catalysts
|
67,830
|
|
|
27.3
|
%
|
|
69,749
|
|
|
33.0
|
%
|
|
(3
|
)%
|
||
All Other
|
3,862
|
|
|
1.5
|
%
|
|
5,156
|
|
|
2.4
|
%
|
|
(25
|
)%
|
||
Corporate
|
(23,957
|
)
|
|
(9.6
|
)%
|
|
(31,869
|
)
|
|
(15.1
|
)%
|
|
(25
|
)%
|
||
Total adjusted EBITDA
|
$
|
248,718
|
|
|
100.0
|
%
|
|
$
|
211,376
|
|
|
100.0
|
%
|
|
18
|
%
|
|
Lithium
|
|
Bromine Specialties
|
|
Catalysts
|
|
Reportable Segments Total
|
|
All Other
|
|
Corporate
|
|
Consolidated Total
|
||||||||||||||
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
|
|
Depreciation and amortization
|
24,065
|
|
|
10,433
|
|
|
12,170
|
|
|
46,668
|
|
|
2,102
|
|
|
1,560
|
|
|
50,330
|
|
|||||||
Acquisition and integration related costs
(a)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,201
|
|
|
2,201
|
|
|||||||
Interest and financing expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,538
|
|
|
13,538
|
|
|||||||
Income tax expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,361
|
|
|
20,361
|
|
|||||||
Non-operating pension and OPEB items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,197
|
)
|
|
(2,197
|
)
|
|||||||
Legal accrual
(b)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,628
|
|
|
17,628
|
|
|||||||
Other
(c)
|
(1,385
|
)
|
|
—
|
|
|
—
|
|
|
(1,385
|
)
|
|
—
|
|
|
16,482
|
|
|
15,097
|
|
|||||||
Adjusted EBITDA
|
$
|
131,014
|
|
|
$
|
69,969
|
|
|
$
|
67,830
|
|
|
$
|
268,813
|
|
|
$
|
3,862
|
|
|
$
|
(23,957
|
)
|
|
$
|
248,718
|
|
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
|
|
Depreciation and amortization
|
19,065
|
|
|
9,794
|
|
|
12,783
|
|
|
41,642
|
|
|
1,910
|
|
|
1,518
|
|
|
45,070
|
|
|||||||
Utilization of inventory markup
(d)
|
10,606
|
|
|
—
|
|
|
—
|
|
|
10,606
|
|
|
—
|
|
|
—
|
|
|
10,606
|
|
|||||||
Restructuring and other, net
(e)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,905
|
|
|
12,905
|
|
|||||||
Gain on acquisition
(f)
|
(7,433
|
)
|
|
—
|
|
|
—
|
|
|
(7,433
|
)
|
|
—
|
|
|
—
|
|
|
(7,433
|
)
|
|||||||
Acquisition and integration related costs
(a)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,281
|
|
|
14,281
|
|
|||||||
Interest and financing expenses
(g)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
68,513
|
|
|
68,513
|
|
|||||||
Income tax expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,971
|
|
|
11,971
|
|
|||||||
Non-operating pension and OPEB items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,063
|
)
|
|
(1,063
|
)
|
|||||||
Other
(h)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,313
|
|
|
5,313
|
|
|||||||
Adjusted EBITDA
|
$
|
99,852
|
|
|
$
|
68,488
|
|
|
$
|
69,749
|
|
|
$
|
238,089
|
|
|
$
|
5,156
|
|
|
$
|
(31,869
|
)
|
|
$
|
211,376
|
|
(a)
|
Included amounts for the three-month periods ended March 31, 2018 and 2017 recorded in (1) Cost of goods sold of
$1.0 million
and
$8.9 million
, respectively; and (2) Selling, general and administrative expenses of
$1.2 million
and
$5.4 million
, respectively, relating to various significant projects, including the Jiangli New Materials acquisition, which contains unusual compensation related costs negotiated specifically as a result of this acquisition that are outside of the Company’s normal compensation arrangements.
|
(b)
|
Included in Other (expenses) income, net is a
$17.6 million
accrual resulting from a jury rendered verdict against Albemarle related to certain business concluded under a 2014 sales agreement for products that Albemarle no longer manufactures.
|
(c)
|
Included amounts for the three months ended March 31, 2018 recorded in:
|
▪
|
Cost of goods sold -
$1.1 million
related to the write-off of fixed assets in our JBC joint venture.
|
▪
|
Selling, general and administrative expenses -
$1.4 million
gain related to a refund from Chilean authorities due to an overpayment made in a prior year.
|
▪
|
Other (expenses) income, net -
$15.6 million
of environmental charges related to a site formerly owned by Albemarle, partially offset by a net gain of
$0.2 million
related to the reversal of previously recorded expenses of disposed businesses.
|
(d)
|
In connection with the acquisition of Jiangli New Materials, the Company valued inventory purchased from Jiangli New Materials at fair value, which resulted in a markup of the underlying net book value of the inventory totaling approximately
$23.1 million
. The inventory markup was expensed over the estimated remaining selling period. For the three-month period ended March 31, 2017,
$10.6 million
was included in Cost of goods sold related to the utilization of the inventory markup.
|
(e)
|
During the first quarter of 2017, we initiated actions to reduce costs at several locations, primarily at our Lithium site in Germany. Based on the restructuring plans, we have recorded expenses of
$2.9 million
in Cost of goods sold,
$4.2 million
in Selling, general and administrative expenses and
$5.8 million
in Research and development expenses, primarily related to severance, expected to be incurred. The unpaid balance is recorded in Accrued expenses at March 31, 2018, with the expectation that the majority of these plans will be completed by the end of 2018.
|
(f)
|
Gain recorded in Other (expenses) income, net related to the acquisition of the remaining
50%
interest in the Sales de Magnesio Ltda. joint venture in Chile. The calculation of the initial gain recorded during the three months ended March 31, 2017 was based on management’s preliminary estimates and assumptions available at that time.
|
(g)
|
During the first quarter of 2017, we repaid the
3.00%
Senior notes in full,
€307.0 million
of the
1.875%
Senior notes and
$174.7 million
of the
4.50%
Senior notes, as well as related tender premiums of
$45.2 million
. As a result, included in Interest and financing expenses is a loss on early extinguishment of debt of
$52.8 million
, representing the tender premiums, fees, unamortized discounts and unamortized deferred financing costs from the redemption of these senior notes.
|
(h)
|
Included in Other (expenses) income, net are
$3.2 million
of asset retirement obligation charges related to the revision of an estimate at a site formerly owned by Albemarle and a loss of
$2.1 million
associated with the previous disposal of a business.
|
Issue Month/Year
|
|
Principal (in millions)
|
|
Interest Rate
|
|
Interest Payment Dates
|
|
Maturity Date
|
|
December 2014
|
|
€393.0
|
|
1.875%
|
|
December 8
|
|
December 8, 2021
|
|
November 2014
|
|
$425.0
|
|
4.15%
|
|
June 1
|
December 1
|
|
December 1, 2024
|
November 2014
|
|
$350.0
|
|
5.45%
|
|
June 1
|
December 1
|
|
December 1, 2044
|
December 2010
|
|
$175.3
|
|
4.50%
|
|
June 15
|
December 15
|
|
December 15, 2020
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
Item 4.
|
Controls and Procedures.
|
Item 1.
|
Legal Proceedings.
|
Item 1A.
|
Risk Factors.
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds.
|
Item 6.
|
Exhibits.
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
101
|
|
|
Interactive Data File (Quarterly Report on Form 10-Q, for the quarterly period ended March 31, 2018, furnished in XBRL (eXtensible Business Reporting Language)).
|
|
|
|
|
|
|
|
|
|
ALBEMARLE CORPORATION
|
||
|
|
|
(Registrant)
|
||
|
|
|
|
||
Date:
|
May 9, 2018
|
|
By:
|
|
/
S
/ S
COTT
A. T
OZIER
|
|
|
|
|
|
Scott A. Tozier
|
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
|
|
(principal financial officer)
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|
No information found
No Suppliers Found
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|