US Albemarle Q2 income plummets on exit from flame retardants

17 July 2012 22:06  [Source: ICIS news]

HOUSTON (ICIS)--US Albemarle’s second-quarter net income plummeted to $37.7m (€30.5m), as a result of expenses related to the company’s exit from the flame retardants business, the specialty chemicals producer said on Tuesday.

Net income was down from $114.2m in the same quarter of 2011. Leaving the phosphorus flame retardants business cost Albemarle $73.6m after tax.

Net sales for the company decreased in the quarter to $684.9m, down 7.7% from $742.1m in the second quarter of 2011.

The cost of sales also decreased, falling 9.8% to $442.2m from $490.2m last year.

The catalyst segment saw sales decrease by 14% year on year to $229.1m. Polymer solutions sales fell 15% year on year to $247m.

Fine chemistry was the only segment to increase net sales, jumping 13% to $208.7m.

“Uncertainty persists regarding the condition of the global economy,” the company said. “During the second quarter, we saw a steady deterioration of certain of the indicators that we use to gauge the health of and demand in the markets that our businesses serve, particularly within electronics. In addition, catalysts will face challenging year over year comparisons.”

Albemarle stock fell to $57.23/share on Tuesday, down 0.16%.

($1 = €0.81)

By: Bobbie Clark
+1 713 525 2653

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