11 days ago • Posted by William Ramstein
Lithium company Albemarle shares falling could offer entry point.
For 2021, Albemarle on Wednesday said it expects to record an adjusted profit of $3.25 to $3.65 a share, down from $4.12 a share last year. That outlook was below what Seaport Global was looking for, in part because of a higher share count and more interest costs. Albemarle also said it believes prices for lithium will be down a bit this year. Revenue for that unit is expected to be at its lowest point during the first quarter, the company said. This year, meanwhile, Albemarle expects to complete one facility in Chile that converts brines that contain the soft metal into lithium carbonate and another plant in Australia that converts a mineral into lithium hydroxide. The latter property is 60% owned by Albemarle. Other lithium producers are eyeing capacity expansions amid moves by major auto makers to focus on electric vehicles. The company also said it believes its bromine unit, which provides chemicals used in flame retardants, will improve modestly in 2021 as the broader economy recovers.- WSJ