© Reuters. FILE PHOTO: An indication on the strategy highway results in Albemarle’s lithium evaporation ponds at its facility in Silver Peak, Nevada, U.S., January 9, 2019. REUTERS/Ernest Scheyder/File Picture
(Reuters) -Albemarle Corp, the world’s largest producer of lithium for electrical autos, boosted its 2021 gross sales forecast on Wednesday after posting an adjusted third-quarter revenue that simply beat Wall Avenue’s expectations.
The corporate’s inventory rose 4.1% to $272.80 in after-hours buying and selling following the outcomes. Demand for lithium and different EV minerals has jumped in latest months as automakers across the globe announce aggressive plans to change to all-electric fleets.
Gross sales of lithium, the corporate’s largest division, jumped 35% through the quarter, helped by rising costs. Albemarle (NYSE:) Chief Government Kent Masters forecast “rising demand from our clients” for the EV battery steel.
Albemarle posted a third-quarter internet lack of $392.8 million, or $3.36 per share, in contrast with a internet revenue of $98.3 million, or 92 cents per share within the year-ago quarter, at the same time as income rose 11%.
The end result included a $657.4 million cost associated to an arbitration resolution about Rockwood Holdings Inc’s 2014 sale of a pigments division to Huntsman (NYSE:) Corp. Albemarle inherited Rockwood’s liabilities in a 2015 buyout, which made it the worldwide lithium chief.
Excluding that cost and different one-time gadgets, Albemarle earned $1.05, effectively forward of analysts’ anticipated earnings of 77 cents per share, in line with IBES knowledge from Refinitiv.
The corporate opened its La Negra III/IV lithium manufacturing facility in Chile through the quarter and mentioned it expects to complete development on its Kemerton lithium manufacturing facility in Australia by the top of the yr.
Albemarle additionally purchased a lithium processor in China through the quarter, boosting its operations on this planet’s largest electrical car market.
Gross sales rose within the firm’s bromine division, which sells chemical compounds for fireplace extinguishers and different merchandise, and fell within the catalysts division, which sells supplies for oil refineries.
The Charlotte, North Carolina-based firm is scheduled to carry a convention name with buyers on Thursday morning to debate the quarterly outcomes.
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