Previous Statements by ALB
» Albemarle's CEO Discusses Q1 2012 Results - Earnings Call Transcript
» Albemarle's CEO Discusses Q4 2011 Results - Earnings Call Transcript
» Albemarle Corporation CEO Discusses Q3 2011 Results - Earnings Call Transcript
» Albemarle's CEO Discusses Q2 2011 Results - Earnings Call Transcript
Luther C. Kissam, IVWe appreciate the opportunity to share our second quarter financial results with you today. I’ll begin by commenting on the company’s quarterly results and share the updates related to some of our capital expansions as well as touch on our views for the rest of the year. John Steitz will then walk you through the business segment performance before Scott Tozier reviews select financial highlights. As usual, at the end of our prepared remarks we’ll open it up for your questions. I’m pleased to report second quarter results that reflect the continuation of our solid start to 2012 across each of our segments. For the quarter, our net income before special items was $111 million or $1.24 per share up 1% year-over-year. Net sales were $685 million down 8% year-over-year. Year-to-date our earnings have exceeded levels achieved in 2011 despite what I would categorize as a more challenging economic environment this year. EBTIDA for the quarter before special items was $181 million up 2% year-over-year and for the first six months EBITDA was $357 million before special items, also up 2% year-over-year. In the first half of 2012 volume gains in FCC catalysts and performance catalyst solutions coupled with strategic pricing moves and great cost management and execution on the manufacturing side offset lower volumes in polymer solutions and HPC catalysts allowing us to deliver a better financial performance than in the first half of 2011. As John will discuss in more detail later, during the second quarter record fine chemistry results reflected continued strength in bromine & derivatives and continued growth in our contract manufacturing franchise. Polymer delivered its second straight quarter of meaningful sequential earnings and margin improvements. Catalysts delivered year-over-year earnings growth but slipped sequentially and versus our expectations at the beginning of the year as HPC catalysts saw more pronounced seasonal decline in volume of fresh catalyst than usual.
As we’ve said frequently over the years the relatively long sales cycle ranging from between 18 months and three years, depending on the customer, and the large nature of HPC orders makes forecasting inherently complex quarter-to-quarter. It’s important to note that we maintained our HPC market share during the second quarter where we were the incumbent supplier we supplied the vast majority of resales in the quarter.We even picked up a couple hundred net tons in situations where we were not the incumbent. This was simply a quarter when not many of the units we supply were up for resale. Fundamentally our catalyst franchise overall is maintaining market share, remains healthy, and continues to enjoy excellent competitive positioning and growth prospects. At this time I’d like to elaborate a little on the special item we reported this quarter related to approximately $95 million, $74 million after tax or $0.82 per share of charges related to our previously announced plans to exit the phosphorous flame retardant business. The cash outlay related to this exit is expected to be in the $5 to $15 million range with a payback in approximately one year. Earning wise, full year 2013 should benefit by somewhere between $0.10 and $0.13 per share from this action. We have a history of managing assets that are not meeting our performance targets and our sites in Avonmouth and Nanjing were disadvantage from a location, scale and product mix standpoint. The charges taken should be sufficient to cover all exit costs and this decision will not impact our ability to achieve 2015. Read the rest of this transcript for free on seekingalpha.com