Albemarle Reports First Quarter 2001 Results

Apr 20, 2001, 01:00 ET from Albemarle Corporation

    RICHMOND, Va., April 20 /PRNewswire Interactive News Release/ -- Albemarle
 Corporation (NYSE:   ALB) reported today net income for the first quarter 2001
 of $22.5 million, or 48 cents per share on a fully diluted basis, down from
 $28.5 million, or 61 cents per share in 2000.  Net sales for the first quarter
 of 2001 were $224.4 million, down from $235.5 million in 2000.
     Results for first quarter 2001 reflected reduced shipments and lower
 selling prices in the Company's zeolite business, higher overall raw material
 and energy costs and the negative effects of foreign exchange as well as the
 effect of lower shipments of some of our other products due to business
 interruptions at our plants and those of certain of our customers, net of
 accrued insurance recoveries associated with incidences during the first
 quarter of 2001 and the fourth quarter of 2000.  These unfavorable effects
 were offset, in part, by the benefit of aggressive cost reduction efforts and
 a lower effective income tax rate during the first quarter of 2001 versus the
 comparable period in 2000.
     Floyd D. Gottwald, Jr., chief executive officer said, "We did a good job
 to deliver earnings that were actually above our fourth-quarter 2000 results
 in spite of weakness in some of our end markets, higher overall raw material
 and energy costs and negative foreign exchange.  A key to our performance was
 the tremendous effort in the quarter by our employees to manage costs and
 maintain our business.
     "We expect to see our energy costs running above comparable periods of
 2000 for the balance of this year and our year-end effective income tax rate
 to be in line with our prior years' rate of 31%.  Although we continue to be
 concerned about the strength of our customers' end markets, we still are
 hopeful we will see improvement sometime in the second half of 2001."
     Some of the information presented may constitute forward-looking comments
 within the meaning of the Private Securities Litigation Reform Act of 1995.
 Although the Company believes its expectations are based on reasonable
 assumptions within the bounds of its knowledge of its business and operations,
 there can be no assurance that actual results will not differ materially from
 its expectations.  Factors which could cause actual results to differ from
 expectations include, without limitation, the timing of orders received from
 customers, the gain or loss of significant customers, competition from other
 manufacturers, changes in the demand for the Company's products, increases in
 the cost of the products, changes in the market in general, fluctuations in
 foreign currencies and significant changes in new product introduction
 resulting in an increase in capital projects leading to additional capital
 spending.
     A global leader in specialty and fine chemicals that enhance consumer
 products, Albemarle Corporation serves markets for polymers, surfactants and
 biocides, pharmaceuticals, agricultural chemicals, photographic chemicals,
 water treatment, oilfield chemicals and petroleum products.
     A more comprehensive discussion of the Company's performance will be
 available on Albemarle's Web Page at: www.albemarle.com on April 20, 2001,
 following a conference call at 10 am (EDT).
 
 
      Albemarle Corporation and Subsidiaries
      Condensed Consolidated Statement of Income
      (In thousands except per-share amounts) (Unaudited)
 
                                                 First Quarters Ended March 31
                                                      2001            2000
      Net sales                                      $224,410        $235,480
      Cost of goods sold (A)                          164,955         160,878
        Gross profit                                   59,455          74,602
 
      Selling, general and administrative expenses     22,704          26,186
      Research and development expenses                 5,777           6,248
        Operating profit                               30,974          42,168
 
      Interest and financing expenses                  (1,069)         (1,767)
      Other income (expense), net                       1,582             973
 
      Income before income taxes                       31,487          41,374
      Income taxes                                      8,942          12,826
 
      Net income                                     $ 22,545        $ 28,548
 
      Basic earnings per share                       $   0.49        $   0.62
 
      Shares used to compute basic earnings
       per share                                       45,838          46,084
 
      Diluted earnings per share                     $   0.48        $   0.61
 
      Shares used to compute diluted earnings
       per share                                       46,686          46,538
 
     See accompanying notes to the consolidated financial statements following
 the balance sheets.
 
 
      Albemarle Corporation and Subsidiaries
      Consolidated Summary of Segment Results
      (In thousands) (Unaudited)
 
                                    First Quarters Ended March 31
                                     2001                    2000
                             Revenues    Income      Revenues    Income
      Polymer Chemicals      $120,956   $ 20,858     $128,213   $ 26,928
      Fine Chemicals          103,454     14,892      107,267     21,906
        Segment totals       $224,410     35,750(A)  $235,480     48,834(A)
      Corporate and
       other expenses                     (4,776)                 (6,666)
        Operating profit                  30,974                  42,168
      Interest and financing
       expenses                           (1,069)                 (1,767)
      Other income, net                    1,582                     973
      Income before
       income taxes                     $ 31,487                $ 41,374
 
     See accompanying notes to the consolidated financial statements following
 the balance sheets.
 
 
      Albemarle Corporation and Subsidiaries
      Condensed Consolidated Statement of Cash Flows
      (In thousands) (Unaudited)
 
                                                   Three Months Ended March 31
                                                        2001         2000
      Cash and cash equivalents at beginning of year   $ 19,300     $ 48,621
      Cash flows from operating activities:
        Net income                                       22,545       28,548
        Adjustments to reconcile net income to
         cash flows from operating activities:
          Depreciation and amortization                  18,445       18,150
          Working capital (increase) decrease
           excluding cash and cash equivalents           (8,759)      (3,466)
        Other, net                                         (795)        (855)
          Net cash provided from operating activities    31,436       42,377
      Cash flows from investing activities:
        Capital expenditures                            (14,469)     (13,509)
        Investments in joint ventures and
         nonmarketable securities                        (6,143)         (96)
        Other, net                                           22        1,283
          Net cash used in investing activities         (20,590)     (12,322)
        Cash flows from financing activities:
          Repayments of long-term debt                   (9,216)     (44,700)
          Dividends paid                                 (5,956)      (4,635)
          Purchases of common stock                         ---       (7,972)
          Proceeds from exercise of stock options           591           16
            Net cash used in financing activities       (14,581)     (57,291)
        Net effect of foreign exchange on cash           (1,000)          (7)
        (Decrease) in cash and cash equivalents          (4,735)     (27,243)
        Cash and cash equivalents at end of period     $ 14,565     $ 21,378
 
     See accompanying notes to the consolidated financial statements following
 the balance sheets.
 
      Albemarle Corporation and Subsidiaries
      Condensed Consolidated Balance Sheets
      (In thousands of dollars) (Unaudited)
 
                                                      March 31    December 31
                                                        2001          2000
      ASSETS
      Cash and cash equivalents                        $ 14,565     $ 19,300
      Other current assets                              291,247      295,854
 
        Total current assets                            305,812      315,154
 
      Property, plant and equipment                   1,332,167    1,326,534
      Less accumulated depreciation and amortization    849,764      836,460
 
        Net property, plant and equipment               482,403      490,074
      Other assets and intangibles                      183,479      176,575
                                                       $971,694     $981,803
      LIABILITIES & SHAREHOLDERS' EQUITY
      Current liabilities                              $139,530     $142,116
      Long-term debt                                     87,384       97,681
      Other noncurrent liabilities                       85,578       83,496
      Deferred income taxes                              93,066       99,603
      Shareholders' equity                              566,136      558,907
                                                       $971,694     $981,803
 
      Notes (in thousands except share amounts):
 
      (A)  Includes foreign exchange transaction (losses)/gains of ($502) and
           $419 for the first quarters ended March 31, 2001, and 2000,
           respectively.
 
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SOURCE Albemarle Corporation
    RICHMOND, Va., April 20 /PRNewswire Interactive News Release/ -- Albemarle
 Corporation (NYSE:   ALB) reported today net income for the first quarter 2001
 of $22.5 million, or 48 cents per share on a fully diluted basis, down from
 $28.5 million, or 61 cents per share in 2000.  Net sales for the first quarter
 of 2001 were $224.4 million, down from $235.5 million in 2000.
     Results for first quarter 2001 reflected reduced shipments and lower
 selling prices in the Company's zeolite business, higher overall raw material
 and energy costs and the negative effects of foreign exchange as well as the
 effect of lower shipments of some of our other products due to business
 interruptions at our plants and those of certain of our customers, net of
 accrued insurance recoveries associated with incidences during the first
 quarter of 2001 and the fourth quarter of 2000.  These unfavorable effects
 were offset, in part, by the benefit of aggressive cost reduction efforts and
 a lower effective income tax rate during the first quarter of 2001 versus the
 comparable period in 2000.
     Floyd D. Gottwald, Jr., chief executive officer said, "We did a good job
 to deliver earnings that were actually above our fourth-quarter 2000 results
 in spite of weakness in some of our end markets, higher overall raw material
 and energy costs and negative foreign exchange.  A key to our performance was
 the tremendous effort in the quarter by our employees to manage costs and
 maintain our business.
     "We expect to see our energy costs running above comparable periods of
 2000 for the balance of this year and our year-end effective income tax rate
 to be in line with our prior years' rate of 31%.  Although we continue to be
 concerned about the strength of our customers' end markets, we still are
 hopeful we will see improvement sometime in the second half of 2001."
     Some of the information presented may constitute forward-looking comments
 within the meaning of the Private Securities Litigation Reform Act of 1995.
 Although the Company believes its expectations are based on reasonable
 assumptions within the bounds of its knowledge of its business and operations,
 there can be no assurance that actual results will not differ materially from
 its expectations.  Factors which could cause actual results to differ from
 expectations include, without limitation, the timing of orders received from
 customers, the gain or loss of significant customers, competition from other
 manufacturers, changes in the demand for the Company's products, increases in
 the cost of the products, changes in the market in general, fluctuations in
 foreign currencies and significant changes in new product introduction
 resulting in an increase in capital projects leading to additional capital
 spending.
     A global leader in specialty and fine chemicals that enhance consumer
 products, Albemarle Corporation serves markets for polymers, surfactants and
 biocides, pharmaceuticals, agricultural chemicals, photographic chemicals,
 water treatment, oilfield chemicals and petroleum products.
     A more comprehensive discussion of the Company's performance will be
 available on Albemarle's Web Page at: www.albemarle.com on April 20, 2001,
 following a conference call at 10 am (EDT).
 
 
      Albemarle Corporation and Subsidiaries
      Condensed Consolidated Statement of Income
      (In thousands except per-share amounts) (Unaudited)
 
                                                 First Quarters Ended March 31
                                                      2001            2000
      Net sales                                      $224,410        $235,480
      Cost of goods sold (A)                          164,955         160,878
        Gross profit                                   59,455          74,602
 
      Selling, general and administrative expenses     22,704          26,186
      Research and development expenses                 5,777           6,248
        Operating profit                               30,974          42,168
 
      Interest and financing expenses                  (1,069)         (1,767)
      Other income (expense), net                       1,582             973
 
      Income before income taxes                       31,487          41,374
      Income taxes                                      8,942          12,826
 
      Net income                                     $ 22,545        $ 28,548
 
      Basic earnings per share                       $   0.49        $   0.62
 
      Shares used to compute basic earnings
       per share                                       45,838          46,084
 
      Diluted earnings per share                     $   0.48        $   0.61
 
      Shares used to compute diluted earnings
       per share                                       46,686          46,538
 
     See accompanying notes to the consolidated financial statements following
 the balance sheets.
 
 
      Albemarle Corporation and Subsidiaries
      Consolidated Summary of Segment Results
      (In thousands) (Unaudited)
 
                                    First Quarters Ended March 31
                                     2001                    2000
                             Revenues    Income      Revenues    Income
      Polymer Chemicals      $120,956   $ 20,858     $128,213   $ 26,928
      Fine Chemicals          103,454     14,892      107,267     21,906
        Segment totals       $224,410     35,750(A)  $235,480     48,834(A)
      Corporate and
       other expenses                     (4,776)                 (6,666)
        Operating profit                  30,974                  42,168
      Interest and financing
       expenses                           (1,069)                 (1,767)
      Other income, net                    1,582                     973
      Income before
       income taxes                     $ 31,487                $ 41,374
 
     See accompanying notes to the consolidated financial statements following
 the balance sheets.
 
 
      Albemarle Corporation and Subsidiaries
      Condensed Consolidated Statement of Cash Flows
      (In thousands) (Unaudited)
 
                                                   Three Months Ended March 31
                                                        2001         2000
      Cash and cash equivalents at beginning of year   $ 19,300     $ 48,621
      Cash flows from operating activities:
        Net income                                       22,545       28,548
        Adjustments to reconcile net income to
         cash flows from operating activities:
          Depreciation and amortization                  18,445       18,150
          Working capital (increase) decrease
           excluding cash and cash equivalents           (8,759)      (3,466)
        Other, net                                         (795)        (855)
          Net cash provided from operating activities    31,436       42,377
      Cash flows from investing activities:
        Capital expenditures                            (14,469)     (13,509)
        Investments in joint ventures and
         nonmarketable securities                        (6,143)         (96)
        Other, net                                           22        1,283
          Net cash used in investing activities         (20,590)     (12,322)
        Cash flows from financing activities:
          Repayments of long-term debt                   (9,216)     (44,700)
          Dividends paid                                 (5,956)      (4,635)
          Purchases of common stock                         ---       (7,972)
          Proceeds from exercise of stock options           591           16
            Net cash used in financing activities       (14,581)     (57,291)
        Net effect of foreign exchange on cash           (1,000)          (7)
        (Decrease) in cash and cash equivalents          (4,735)     (27,243)
        Cash and cash equivalents at end of period     $ 14,565     $ 21,378
 
     See accompanying notes to the consolidated financial statements following
 the balance sheets.
 
      Albemarle Corporation and Subsidiaries
      Condensed Consolidated Balance Sheets
      (In thousands of dollars) (Unaudited)
 
                                                      March 31    December 31
                                                        2001          2000
      ASSETS
      Cash and cash equivalents                        $ 14,565     $ 19,300
      Other current assets                              291,247      295,854
 
        Total current assets                            305,812      315,154
 
      Property, plant and equipment                   1,332,167    1,326,534
      Less accumulated depreciation and amortization    849,764      836,460
 
        Net property, plant and equipment               482,403      490,074
      Other assets and intangibles                      183,479      176,575
                                                       $971,694     $981,803
      LIABILITIES & SHAREHOLDERS' EQUITY
      Current liabilities                              $139,530     $142,116
      Long-term debt                                     87,384       97,681
      Other noncurrent liabilities                       85,578       83,496
      Deferred income taxes                              93,066       99,603
      Shareholders' equity                              566,136      558,907
                                                       $971,694     $981,803
 
      Notes (in thousands except share amounts):
 
      (A)  Includes foreign exchange transaction (losses)/gains of ($502) and
           $419 for the first quarters ended March 31, 2001, and 2000,
           respectively.
 
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 SOURCE  Albemarle Corporation