Albemarle Corporation (ALB) has reported a 77.56 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $51.21 million, or $0.45 a share in the quarter, compared with $228.19 million, or $2.02 a share for the same period last year. On the other hand, adjusted net income from continuing operations for the quarter stood at $119.01 million, or $1.05 a share compared with $107.16 million or $0.95 a share, a year ago.
Revenue during the quarter grew 9.87 percent to $722.06 million from $657.21 million in the previous year period. Gross margin for the quarter contracted 158 basis points over the previous year period to 35.33 percent. Total expenses were 83 percent of quarterly revenues, up from 63.06 percent for the same period last year. That has resulted in a contraction of 1994 basis points in operating margin to 17 percent.
Operating income for the quarter was $122.76 million, compared with $242.80 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $211.38 million compared with $192.03 million in the prior year period. At the same time, adjusted EBITDA margin improved 5 basis points in the quarter to 29.27 percent from 29.22 percent in the last year period.
"Our first quarter results clearly demonstrate the increased growth profile of Albemarle following the changes to our business portfolio over the last few years," said Luke Kissam, Albemarle's Chairman, President and CEO. "Excluding currency exchange impacts and divested businesses, both revenue and adjusted EBITDA grew by double digits, 15% and 14%, respectively, compared to first quarter 2016. Our industry-leading Lithium business lead that growth, with an adjusted EBITDA increase of 56%."
For financial year 2017, Albemarle Corp expects revenue to be in the range of $2,900 million to $3,050 million. The company projects diluted earnings per share to be in the range of $4.20 to $4.40 on adjusted basis.
Working capital increases sharply
Albemarle Corp has recorded an increase in the working capital over the last year. It stood at $1,182.31 million as at Mar. 31, 2017, up 202.93 percent or $792.01 million from $390.29 million on Mar. 31, 2016. Current ratio was at 1.98 as on Mar. 31, 2017, up from 1.32 on Mar. 31, 2016.
Debt comes down significantly
Albemarle Corp has recorded a decline in total debt over the last one year. It stood at $1,712.89 million as on Mar. 31, 2017, down 52.29 percent or $1,877.22 million from $3,590.10 million on Mar. 31, 2016. Total debt was 23.25 percent of total assets as on Mar. 31, 2017, compared with 38.03 percent on Mar. 31, 2016. Debt to equity ratio was at 0.45 as on Mar. 31, 2017, down from 0.97 as on Mar. 31, 2016.
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