uploads/2018/08/Albemarle-Q2-2018-Revenue-1.png

Albemarle’s Revenue Continued to Rise despite Divestiture in Q2

By

Updated

Albemarle’s Q2 2018 revenue

Albemarle’s (ALB) revenue continued its upward trend for the second quarter. It reported revenue of $853.9 million for Q2 2018, reflecting an increase of 15.8% over Q2 2017. Peer FMC (FMC) rose 92% on acquisitions, while Sociedad Química y Minera de Chile (SQM) is expected to grow its revenue by 12.5% in its second quarter. The company surpassed the Wall Street analyst estimate of $798.2 million. Since 2013, ALB’s revenue has grown at a CAGR (compound annual growth rate) of 8.15%.

Article continues below advertisement

Albemarle’s revenue grew despite the divestiture of the polyolefin catalysts and components business to W.R. Grace (GRA). Higher volumes, better pricing, and favorable foreign currency influenced ALB’s revenue growth and offset the divestiture impact. All three of ALB’s reporting segments witnessed revenue growth. On a year-over-year basis, the Lithium segment led the revenue growth with 30.2% growth, followed by the Catalysts segment with 10.3% growth, and the Bromine segment with 8.1% growth. We’ll discuss each of the reporting segments in the upcoming parts.

Outlook

ALB’s positive outlook on lithium was driven by the growing demand for electric vehicles. As a result, Albemarle made an upward revision to its revenue for fiscal 2018. ALB now projects its fiscal 2018 revenues to be in the range of $3.3 billion to $3.5 billion as against the earlier guidance of $3.2 billion to $3.4 billion.

Management comments

Luke Kissam, Albemarle’s chair, president, and CEO, said, “We saw strength in all three businesses in the second quarter, with each delivering double-digit adjusted EBITDA growth. The company grew adjusted diluted EPS by 28% over 2017, excluding divested businesses. Our lithium capital projects continue to progress on plan. We are confident in a strong 2018 and are raising our guidance for the full year to $5.30 to $5.50 per diluted share.”

Investors can hold Albemarle by investing in the First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN), which invests 8.3% of its portfolio in Albemarle as of August 8, 2018.

Advertisement

More From Market Realist