Albemarle swings to third-quarter profit on rising lithium prices
Albemarle swings to third-quarter profit on rising lithium prices Nov 5 (Reuters) - Albemarle ALB.N, the world's largest lithium producer, swung to a third-quarter profit due to rising prices for the critical mineral used to make a range of batteries.
The results reflected the improving lithium market after a supply glut forced the company and peers in 2024 to cut staff and curtail growth projects.
Shares of the Charlotte, North Carolina-based company jumped 6.5% in Thursday morning trading.
"Lithium demand continues to outpace supply growth," Albemarle CEO Kent Masters said on a Thursday conference call to discuss the results, which were released on Wednesday evening.
The company, which operates across the Americas, Australia, Asia and Europe, reported quarterly income of $296.8 million, or $2.15 per share, compared to a loss of $160.7 million, or $1.72 per share, in the year-ago quarter.
Excluding one-time items, the company earned $2.58 per share. By that measure, analysts expected earnings of $2.54 per share, according to IBES data from LSEG.
Albemarle said the average price it received for its lithium rose 95% during the quarter even as its sales volumes decreased 19%.
The company said during the quarter that former BHP BHP.AX executive Ragnar Udd will replace Masters as CEO in February.
(Reporting by Ernest Scheyder; Editing by Andrea Ricci )
((ernest.scheyder@thomsonreuters.com; X: @ErnestScheyder; +1-469-691-7667; Reuters Messaging: ernest.scheyder.thomsonreuters.com@reuters.net/))