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Albemarle Corp. Reports Operating Results (10-Q)

October 29, 2010 | About:

10qk

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Albemarle Corp. (ALB) filed Quarterly Report for the period ended 2010-09-30.

Albemarle Corp. has a market cap of $4.42 billion; its shares were traded at around $49.47 with a P/E ratio of 14.7 and P/S ratio of 2.2. The dividend yield of Albemarle Corp. stocks is 1.1%. Albemarle Corp. had an annual average earning growth of 10.7% over the past 10 years.ALB is in the portfolios of Columbia Wanger of Columbia Wanger Asset Management, Steven Cohen of SAC Capital Advisors, Chuck Royce of Royce& Associates, Mario Gabelli of GAMCO Investors, Bruce Kovner of Caxton Associates, Jeremy Grantham of GMO LLC.
This is the annual revenues and earnings per share of ALB over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of ALB.


Highlight of Business Operations:

For the three-month period ended September 30, 2010, we recorded net sales of $585.0 million, a 14% increase compared to net sales of $515.3 million for the three-month period ended September 30, 2009. This increase was due primarily to an increase in volumes in all segments mainly as a result of improved year-over-year conditions in the global economy. Volume had a favorable impact on sales of 12%, price/mix was favorable 4% and foreign exchange impacts were unfavorable 2% compared to the same period last year.

Polymer Solutions net sales increased $35.1 million, or 18%, for the three-month period ended September 30, 2010 compared to the same period in 2009, due mainly to the impact of higher volumes of 12% and favorable price/mix of 8%, partly offset by foreign exchange impacts of 2%. Catalysts net sales increased $25.9 million, or 14%, for the three-month period ended September 30, 2010, compared to the same period last year due mainly to an increase in volumes contributing 15% and favorable price/mix of 1%, partly offset by unfavorable foreign currency impacts of 2%. Fine Chemistry net sales increased $8.8 million, or 7%, for the three-month period ended September 30, 2010, compared to the same period last year, primarily due to higher volumes contributing 8% of the increase as well as favorable price/mix impacts of 2%, offset in part by unfavorable impacts from foreign exchange of 3%. For a detailed discussion of revenues and segment income for each segment, see “Segment Information Overview” below.

For the three-month period ended September 30, 2010, our gross profit increased $62.7 million, or 47%, from the corresponding 2009 period due mainly to stronger volumes and favorable pricing/mix across our segments and related favorable production rate impacts on cost, particularly in our bromine franchise, as well as improved realization of metals cost pass-through impacts on HPC refinery catalysts. Overall, these factors contributed to our improved gross profit margin for the three-month period ended September 30, 2010 of 33.6%, up from 26.0% for the corresponding period in 2009.

For the three-month period ended September 30, 2010, our selling, general and administrative, or SG&A, expenses increased $5.8 million, or 10%, from the three-month period ended September 30, 2009. This increase was primarily due to higher personnel-related costs. As a percentage of net sales, SG&A expenses were 10.6% for the three-month period ended September 30, 2010, compared to 10.9% for the corresponding period in 2009.

For the three-month period ended September 30, 2010, R&D expenses were comparable to the three-month period ended September 30, 2009, with a slight decrease of $0.6 million, or 4%. As a percentage of net sales, R&D expenses were 2.5% for the three-month period ended September 30, 2010 compared to 2.9% for the corresponding period in 2009.

For the three-month period ended September 30, 2010, our effective income tax rate was 24.1% as compared to 9.7% for the three-month period ended September 30, 2009. Based on our current level and location of income, we expect our effective tax rate will be 24.3% for 2010.

Read the The complete Report

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