Casting manufacturer Albemarle reported a 91% increase in sales

Shares of the mining company Albemarle Corporation (ALB) remain positive after publication of last week’s strong report for the second quarter. The company improved its forecast, and this caused investors to be optimistic. At the auction on August 8, the ALB stock was worth $244.84. Albemarle’s revenue grew by 91% in the past quarter to $1.48 billion. The primary revenue growth of lithium production is against the background of the growing production of electric vehicles. The supply of boron compounds also contributed to an increase in revenue due to a rise in demand for fire safety systems. 

Prices are also rising in this segment. Albemarle has increased the volume of lithium production at deposits in Chile (total production increased by 18%). In addition, lithium prices under the company’s contracts increased by 160%. At the end of the quarter, Albemarle’s adjusted earnings increased by 288% year-on-year to $3.45 per diluted share. Albemarle’s forecast for 2022 assumes revenue growth of 113-125% to $7.1—$7.5 billion. 

Expects positive free cash flow and earnings per share in the range of $19.25—$22.25, which means an increase of 376-451% year-on-year. The weakest segment was catalysts due to rising energy prices. Albemarle is exploring the prospects of this business and may sell it soon. For Albemarle, the market remains favorable: demand for lithium is growing and will likely remain strong in the next two years. The company has opportunities to increase production and maximize the benefits of the trend. An additional positive signal is the announcement of Albemarle’s plans to create integrated lithium production facilities in the United States. In July 2022, a lithium processing plant in Australia began production.