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Last updated on April 24, 2014 at 17:35 EDT

Albemarle reports third quarter 2013 results

October 16, 2013

BATON ROUGE, La., Oct. 16, 2013 /PRNewswire/ –

Third quarter 2013 highlights:

    --  Earnings of $89.4 million, or $1.09 per share, excluding non-operating
        items.
    --  Net sales of $648.6 million and EBITDA margin, excluding non-operating
        items, of 24 percent.
    --  Cash from operations in the quarter of $139 million, up 14% vs prior
        year.
    --  Announced a reorganization to two business units effective January,
        2014.


                            Three Months Ended                Nine Months Ended

                               September 30,                    September 30,
                               -------------                    -------------

    In thousands,
     except per share
     amounts               2013                2012      2013                 2012
    -----------------      ----                ----      ----                 ----

    Net sales                     $648,638           $661,226                       $1,924,460 $2,057,824

    Segment income                $136,456           $151,083                         $399,112   $510,556

    Net income
     attributable to
     Albemarle
     Corporation                   $90,512           $109,459                         $257,238   $273,810

    Diluted earnings
     per share                       $1.11              $1.22                            $3.02      $3.04

        Non-operating
         pension and OPEB
         items(a)         (0.01)              (0.02)    (0.04)               (0.13)

        Special items(b)
         (c)                  -               (0.05)        -                 0.77
                            ---               -----       ---                 ----

    Diluted earnings
     per share,
     excluding
     special and

    non-operating
     pension and OPEB
     items(f)                        $1.09              $1.15                            $2.98      $3.68
                                     =====              =====                            =====      =====

See accompanying notes and reconciliations to the condensed consolidated financial information.

Albemarle Corporation (NYSE: ALB) reported third quarter 2013 earnings of $90.5 million, or $1.11 per share, compared to third quarter 2012 earnings of $109.5 million, or $1.22 per share. Excluding special and non-operating pension and OPEB items (see notes to the condensed consolidated financial information), third quarter 2013 earnings were $89.4 million, or $1.09 per share, compared to $103.1 million, or $1.15 per share, for the third quarter of 2012. The Company reported net sales of $648.6 million in the third quarter of 2013, down from net sales of $661.2 million in the third quarter of 2012, driven by our exit of the phosphorus flame retardants business, lower metals pass through surcharges and unfavorable pricing in our bromine portfolio, partly offset by favorable volumes in Polymer Solutions and Fine Chemistry.

(Logo: http://photos.prnewswire.com/prnh/20111129/MM14279LOGO )

Earnings for the nine months ended September 30, 2013 were $257.2 million, or $3.02 per share, compared to $273.8 million, or $3.04 per share, for the same period in 2012. Excluding special and non-operating pension and OPEB items, earnings for the nine months ended September 30, 2013 were $253.9 million, or $2.98 per share, compared to $331.0 million, or $3.68 per share, for the same period in 2012. Net sales for the nine months ended September 30, 2013 were $1.9 billion, down from $2.1 billion for the same period in 2012, driven by lower metals surcharges, our exit of the phosphorus flame retardants business, and pricing on certain products, partly offset by higher sales volumes.

During the quarter, we announced a realignment of our global business units (GBUs) to increase customer focus, improve efficiency, enhance innovation and accelerate growth. Effective January 1, 2014, the Company’s assets and businesses will be aligned under two GBUs: Performance Chemicals, to include Fire Safety Solutions, Specialty Chemicals and Fine Chemistry Services, and Catalyst Solutions, to include Refinery Catalyst Solutions, Performance Catalyst Solutions and Antioxidants.

“Third quarter results came in about as expected and earnings per share was up 13% sequentially, driven largely by improved performance in refinery catalysts and custom services, lower corporate costs and continued strength in clear brine fluid volumes,” stated Luke Kissam, CEO. “We remain confident that our strategy and the earnings and cash generation capabilities of our businesses will continue to deliver exceptional shareholder value.”

Quarterly Segment Results

Catalysts generated net sales of $226.0 million in the third quarter of 2013, a 10 percent decrease from net sales in the third quarter of 2012, primarily on unfavorable pricing in Refinery Catalysts Solutions on lower metals pass through surcharges and unfavorable Performance Catalyst Solutions volumes and pricing. Catalysts segment income was $57.5 million in the third quarter of 2013, down 7 percent from third quarter 2012 results of $61.8 million, due primarily to higher manufacturing costs, lower pricing in Performance Catalysts Solutions, and lower equity income from our unconsolidated joint ventures, partly offset by higher Refinery Catalysts volumes and lower variable input costs.

Polymer Solutions reported net sales of $224.3 million in the third quarter of 2013, a 3 percent increase from net sales in the third quarter of 2012, on higher volumes across our portfolio, partly offset by unfavorable pricing impacts, primarily in Flame Retardants. Segment income for Polymer Solutions was $41.5 million in the third quarter of 2013, an 8 percent decline from $45.3 million in the third quarter of 2012, driven by unfavorable pricing and higher manufacturing costs, partly offset by favorable sales volumes.

Fine Chemistry net sales in the third quarter of 2013 were $198.3 million, a 3 percent increase from net sales in the third quarter of 2012, due mainly to favorable sales volumes. Segment income for Fine Chemistry was $37.5 million for the third quarter of 2013, down 15 percent from third quarter 2012 results of $44.0 million, due primarily to unfavorable pricing and higher manufacturing costs, partly offset by favorable volumes.

Corporate and Other

Corporate and other expense was $8.8 million ($10.6 million excluding non-operating pension and OPEB items) for the third quarter of 2013. The $5.2 million increase from the comparable period in 2012 was due primarily to higher pension and OPEB and other personnel costs, and higher fees for services.

Interest and financing expenses were $9.5 million for the third quarter of 2013 compared to $7.9 million for the third quarter of 2012, due primarily to decreases in interest capitalized on lower average construction work in progress balances in the 2013 period.

Excluding special and non-operating pension and OPEB items, our effective income tax rates were 22.6 percent and 26.4 percent for the third quarter of 2013 and 2012, respectively. Our effective tax rate continues to be influenced by the level and geographic mix of income, and benefits from a favorable mix of income in lower tax jurisdictions.

Cash Flow

Our cash flow from operations was approximately $318 million for the nine months ended September 30, 2013, up 4 percent from 2012, and we had $401 million in cash and cash equivalents at September 30, 2013. During the nine months ended September 30, 2013, proceeds from borrowings net of repayments, cash on hand and cash provided by operations funded capital expenditures for plant, machinery and equipment of approximately $135 million (which includes approximately $35 million in capital expenditures associated with our Jordanian joint venture), dividends to shareholders of $58.6 million, dividends to noncontrolling interests of $10.0 million, pension and postretirement contributions of $9.9 million and $582.3 million for repurchases of our common stock pursuant to the terms of our share repurchase program and our accelerated share repurchase program entered into in the second quarter.

Earnings Call

The Company’s performance for the third quarter ended September 30, 2013 will be discussed on a conference call at 9:00 AM Eastern Daylight time on October 17, 2013. The call can be accessed by dialing 888-679-8033 (International Dial-In # 617-213-4846), and entering conference ID 43417954. The Company’s earnings presentation and supporting material can be accessed through Albemarle’s website under Investors at www.albemarle.com.

About Albemarle

Albemarle Corporation, headquartered in Baton Rouge, Louisiana, is a leading global developer, manufacturer and marketer of highly-engineered specialty chemicals for consumer electronics, petroleum refining, utilities, packaging, construction, automotive/transportation, pharmaceuticals, crop protection, food-safety and custom chemistry services. Albemarle is committed to global sustainability and is advancing its eco-practices and solutions in its three business segments, Polymer Solutions, Catalysts and Fine Chemistry, with Corporate Responsibility Magazine naming Albemarle among its prestigious “100 Best Corporate Citizens” list for 2013. The Company employs approximately 4,200 people worldwide and serves customers in approximately 100 countries. Albemarle regularly posts information to www.albemarle.com, including notification of events, news, financial performance, investor presentations and webcasts, Regulation G reconciliations, SEC filings and other information regarding the Company, its businesses and markets served.

Forward-Looking Statements

Some of the information presented in this press release and the conference call and discussions that follow, including, without limitation, statements with respect to product development, changes in productivity, market trends, price, volume and mix changes, expected growth and earnings, input costs, surcharges, tax rates, stock repurchases, dividends, economic trends, outlook and all other information relating to matters that are not historical facts may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ materially. Factors that could cause actual results to differ materially include, without limitation: changes in economic and business conditions; changes in financial and operating performance of our major customers and industries and markets served by us; the timing of orders received from customers; the gain or loss of significant customers; competition from other manufacturers; changes in the demand for our products; limitations or prohibitions on the manufacture and sale of our products; availability of raw materials; changes in the cost of raw materials and energy and in our ability to pass through such increases; acquisitions and divestitures, and changes in performance of acquired companies; changes in our markets in general; fluctuations in foreign currencies; changes in laws and government regulation impacting our operations or our products; the occurrence of claims or litigation; the occurrence of natural disasters; the inability to maintain current levels of product or premises liability insurance or the denial of such coverage; political unrest affecting the global economy, including adverse effects from terrorism or hostilities; political instability affecting our manufacturing operations or joint ventures; changes in accounting standards; the inability to achieve results from our global manufacturing cost reduction initiatives as well as our ongoing continuous improvement and rationalization programs; changes in the jurisdictional mix of our earnings and changes in tax laws and rates; changes in monetary policies, inflation or interest rates that may impact our ability to raise capital or increase our cost of funds, impact the performance of our pension fund investments and increase our pension expense and funding obligations; volatility and substantial uncertainties in the debt and equity markets; technology or intellectual property infringement, including cyber security breaches, and other innovation risks; decisions we may make in the future; and the other factors detailed from time to time in the reports we file with the SEC, including those described under “Risk Factors” in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q.


    Albemarle Corporation and Subsidiaries

    Consolidated Statements of Income

    (In Thousands Except Per Share Amounts) (Unaudited)

                                                    Three Months Ended                Nine Months Ended

                                                       September 30,                    September 30,
                                                     -------------                -------------

                                                   2013                2012      2013                 2012
                                                   ----                ----      ----                 ----

    Net sales                                             $648,638           $661,226                       $1,924,460 $2,057,824

    Cost of goods sold                          436,989             443,476 1,316,582            1,339,806
                                                -------             ------- ---------            ---------

    Gross profit                                211,649             217,750   607,878              718,018

    Selling, general and
     administrative
     expenses(d)                                 62,543              53,404   190,193              189,143

    Research and development
     expenses                                    19,441              19,831    60,959               59,791

    Restructuring and other
     charges, net(b)                                  -                   -         -               94,703
                                                    ---                 ---       ---               ------

    Operating profit                            129,665             144,515   356,726              374,381

    Interest and financing
     expenses                                    (9,496)            (7,914)   (22,335)             (25,134)

    Other (expenses) income,
     net                                           (389)              2,370    (6,295)               1,564
                                                   ----               -----    ------                -----

    Income before income taxes and equity
     in net

    income of unconsolidated
     investments                                119,780             138,971   328,096              350,811

    Income tax expense(c)                        27,274              32,472    74,916               93,382
                                                 ------              ------    ------               ------

    Income before equity in net income of

    unconsolidated
     investments                                 92,506             106,499   253,180              257,429

    Equity in net income of unconsolidated

    investments (net of tax)                      5,338               7,935    25,308               29,233
                                                  -----               -----    ------               ------

    Net income                                   97,844             114,434   278,488              286,662

    Net income attributable
     to noncontrolling
     interests                                   (7,332)            (4,975)   (21,250)             (12,852)
                                                 ------              ------   -------              -------

    Net income attributable
     to Albemarle
     Corporation                                           $90,512           $109,459                         $257,238   $273,810
                                                           =======           ========                         ========   ========

    Basic earnings per share                                 $1.11              $1.23                            $3.04      $3.07

    Diluted earnings per
     share                                                   $1.11              $1.22                            $3.02      $3.04

    Weighted-average common shares
     outstanding -

    basic                                        81,385              89,327    84,711               89,246

    Weighted-average common shares
     outstanding -

    diluted                                      81,852              89,879    85,192               89,959

See accompanying notes to the condensed consolidated financial information.


    Albemarle Corporation and Subsidiaries

    Condensed Consolidated Balance Sheets

    (In Thousands) (Unaudited)

                                         September 30,            December 31,

                                                  2013                    2012
                                                  ----                    ----

    ASSETS

    Cash and cash
     equivalents                                         $401,427                $477,696

    Other current
     assets                                    993,279                 929,617
                                               -------                 -------

    Total current
     assets                                  1,394,706               1,407,313
                                             ---------               ---------

    Property, plant and
     equipment                               2,934,613               2,818,604

    Less accumulated
     depreciation and
     amortization                            1,585,637               1,522,033
                                             ---------               ---------

    Net property, plant
     and equipment                           1,348,976               1,296,571

    Other assets and
     intangibles                               726,383                 733,407
                                               -------                 -------

    Total assets                                       $3,470,065              $3,437,291
                                                       ==========              ==========

    LIABILITIES AND EQUITY

    Current portion of
     long-term debt                                       $19,602                 $12,700

    Other current
     liabilities                               391,235                 372,309
                                               -------                 -------

    Total current
     liabilities                               410,837                 385,009
                                               -------                 -------

    Long-term debt                           1,060,282                 686,588

    Other noncurrent
     liabilities                               353,029                 370,318

    Deferred income
     taxes                                      68,768                  63,368

    Albemarle
     Corporation
     shareholders'
     equity                                  1,467,095               1,833,598

    Noncontrolling
     interests                                 110,054                  98,410
                                               -------                  ------

    Total liabilities
     and equity                                        $3,470,065              $3,437,291
                                                       ==========              ==========

See accompanying notes to the condensed consolidated financial information.


    Albemarle Corporation and Subsidiaries

    Selected Consolidated Cash Flow Data

    (In Thousands) (Unaudited)

                                           Nine Months Ended

                                             September 30,
                                           -------------

                                                 2013                 2012

    Cash and cash equivalents
     at beginning of year                               $477,696            $469,416

    Cash and cash equivalents
     at end of period                                   $401,427            $402,642

    Sources of cash and cash equivalents:

    Net income                                          $278,488            $286,662

    Proceeds from borrowings of
     long-term debt                           117,000                    -

    Proceeds from other
     borrowings, net                          357,379                    -

    Proceeds from exercise of
     stock options                              4,510               19,977

    Uses of cash and cash equivalents:

    Capital expenditures                     (135,028)           (218,708)

    Repurchases of common stock              (582,298)             (40,470)

    Repayments of long-term
     debt                                     (93,913)             (11,701)

    Repayments of other
     borrowings, net                                -              (37,542)

    Dividends paid to
     shareholders                             (58,574)             (51,287)

    Dividends paid to
     noncontrolling interests                 (10,014)              (7,628)

    Pension and postretirement
     contributions                             (9,892)             (19,705)

    Non-cash and other items:

    Depreciation and
     amortization                              79,477               74,428

    Non-cash charges
     associated with
     restructuring and other,
     net                                            -               70,587

    Pension and postretirement
     expense (benefit)                          4,730              (10,117)

    Equity in net income of
     unconsolidated investments               (25,308)             (29,233)

See accompanying notes to the condensed consolidated financial information.


    Albemarle Corporation and Subsidiaries

    Consolidated Summary of Segment Results

    (In Thousands) (Unaudited)

                                                  Three Months Ended                Nine Months Ended

                                                     September 30,                    September 30,
                                                    -------------                -------------

                                                 2013                 2012      2013                 2012
                                                 ----                 ----      ----                 ----

    Net sales:

    Polymer Solutions                                   $224,320            $216,992                         $663,410   $692,139

    Catalysts                                 226,042              251,201   695,433              773,867

    Fine Chemistry                            198,276              193,033   565,617              591,818

    Total net sales                                     $648,638            $661,226                       $1,924,460 $2,057,824
                                                        ========            ========                       ========== ==========

    Segment operating profit:

    Polymer Solutions                                    $40,678             $44,694                         $128,169   $162,648

    Catalysts                                  53,878               55,093   146,536              189,104

    Fine Chemistry                             43,894               48,336   120,349              142,403

    Total segment operating profit            138,450              148,123   395,054              494,155
                                              -------              -------   -------              -------

    Equity in net income of unconsolidated
     investments:

    Polymer Solutions                           1,735                1,199     6,371                4,957

    Catalysts                                   3,603                6,736    18,937               24,276

    Fine Chemistry                                  -                    -         -                    -

    Corporate & other                               -                    -         -                    -

    Total equity in net income of
     unconsolidated investments                 5,338                7,935    25,308               29,233
                                                -----                -----    ------               ------

    Net income attributable to noncontrolling
     interests:

    Polymer Solutions                            (916)                (602)   (4,118)              (1,255)

    Catalysts                                       -                    -         -                    -

    Fine Chemistry                             (6,416)              (4,373)  (17,132)             (11,577)

    Corporate & other                               -                    -         -                  (20)

    Total net income attributable to
     noncontrolling interests                  (7,332)              (4,975)  (21,250)             (12,852)
                                               ------               ------   -------              -------

    Segment income:

    Polymer Solutions                          41,497               45,291   130,422              166,350

    Catalysts                                  57,481               61,829   165,473              213,380

    Fine Chemistry                             37,478               43,963   103,217              130,826
                                               ------               ------   -------              -------

    Total segment income                      136,456              151,083   399,112              510,556

    Corporate & other(a) (e)                   (8,785)              (3,608)  (38,328)             (25,091)

    Restructuring and other charges,
     net(b)                                         -                    -         -              (94,703)

    Interest and financing expenses            (9,496)              (7,914)  (22,335)             (25,134)

    Other (expenses) income, net                 (389)               2,370    (6,295)               1,564

    Income tax expense(c)                     (27,274)            (32,472)   (74,916)             (93,382)

    Net income attributable to
     Albemarle Corporation                               $90,512            $109,459                         $257,238   $273,810
                                                         =======            ========                         ========   ========

See accompanying notes to the condensed consolidated financial information.

Notes to the Condensed Consolidated Financial Information

(a) Non-operating pension and OPEB items, consisting of mark-to-market (MTM) actuarial gains/losses as well as interest costs and expected return on assets, are included in Corporate & other as follows:

    --  For the three months ended September 30, 2013 and 2012, net benefits
        amounting to $1.8 million ($1.1 million after income taxes, or $0.01 per
        share) and $2.9 million ($1.8 million after income taxes, or $0.02 per
        share), respectively.  There were no MTM actuarial gains/losses recorded
        during the three months ended September 30, 2013 and 2012.
    --  For the nine months ended September 30, 2013 and 2012, net benefits
        amounting to $5.4 million ($3.4 million after income taxes, or $0.04 per
        share) and $18.9 million ($12.0 million after income taxes, or $0.13 per
        share), respectively.  There were no MTM actuarial gains/losses recorded
        during the nine months ended September 30, 2013.

Although non-operating pension and OPEB items are included in our GAAP operating profit, we believe that these components of pension cost are mainly driven by market performance, and we manage these separately from the operational performance of our businesses.

(b) The nine-month period ended September 30, 2012 includes net charges amounting to $94.7 million ($73.6 million after income taxes, or $0.82 per share) in connection with our exit of the phosphorus flame retardants business.

(c) The three and nine month periods ended September 30, 2012 included discrete net tax benefit items of $4.5 million, or $0.05 per share, related principally to the release of various tax reserves for uncertain domestic tax positions due to the expiration of the domestic statute of limitations related to the 2008 tax year.

(d) The nine-month period ended September 30, 2012 includes a gain of $8.1 million ($5.1 million after tax, or $0.06 per share) resulting from proceeds received in connection with the settlement of litigation (net of related legal fees). The nine-month period ended September 30, 2012 also includes an $8 million charitable contribution ($5.1 million after tax, or $0.06 per share) to the Albemarle Foundation.

(e) The nine-month period ended September 30, 2013 includes costs of $3.6 million which are the subject of a claim by the Company against a freight services vendor for alleged fraud committed against several companies.

(f) Totals may not add due to rounding.

Additional Information

It should be noted that Net income attributable to Albemarle Corporation (“earnings”), earnings per share and effective income tax rates which exclude special and non-operating pension and OPEB items, as well as presentations of segment operating profit, segment income, EBITDA, EBITDA excluding special and non-operating pension and OPEB items, EBITDA margin and EBITDA margin excluding special and non-operating pension and OPEB items are financial measures that are not required by, or presented in accordance with, accounting principles generally accepted in the United States, or GAAP. These measures are presented here to provide additional useful measurements to review our operations, provide transparency to investors and enable period-to-period comparability of financial performance.

A description of other non-GAAP financial measures that we use to evaluate our operations and financial performance, and reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP, can be found in the Investors section of our website at www.albemarle.com, under “Non-GAAP Reconciliations” under “Financials.” Also, see attached for a supplemental reconciliation of our segment operating profit and segment income amounts to GAAP Operating profit and GAAP Net income attributable to Albemarle Corporation, respectively, as well as for a supplemental reconciliation of Net income attributable to Albemarle Corporation excluding special and non-operating pension and OPEB items, EBITDA and EBITDA excluding special and non-operating pension and OPEB items to Net income attributable to Albemarle Corporation.

ALBEMARLE CORPORATION AND SUBSIDIARIES

Non-GAAP Reconciliation

(In Thousands)

(Unaudited)

Our segment information includes measures we refer to as “segment operating profit,” “segment income,” “EBITDA” and “EBITDA excluding special and non-operating pension and OPEB items,” which are financial measures that are not required by, or presented in accordance with, GAAP. The Company has reported segment operating profit, segment income, EBITDA and EBITDA excluding special and non-operating pension and OPEB items because management believes that these financial measures provide transparency to investors and enable period-to-period comparability of financial performance. Segment operating profit, segment income, EBITDA and EBITDA excluding special and non-operating pension and OPEB items should not be considered as alternatives to operating profit or net income attributable to Albemarle Corporation, as determined in accordance with GAAP.

See below for a reconciliation of segment operating profit and segment income, the non-GAAP financial measures, to Operating profit and Net income attributable to Albemarle Corporation, respectively, the most directly comparable financial measures calculated and reported in accordance with GAAP.


                            Three Months Ended                Nine Months Ended

                               September 30,                    September 30,
                               -------------                    -------------

                           2013                 2012      2013                 2012
                           ----                 ----      ----                 ----

    Total segment
     operating profit             $138,450            $148,123                       $395,054 $494,155

    Corporate & other *  (8,785)              (3,608)  (38,328)             (25,071)

    Restructuring and
     other charges, net       -                    -         -              (94,703)
                            ---                  ---

    GAAP Operating
     profit                       $129,665            $144,515                       $356,726 $374,381
                                  ========            ========                       ======== ========

    Total segment
     income                       $136,456            $151,083                       $399,112 $510,556

    Corporate & other    (8,785)              (3,608)  (38,328)             (25,091)

    Restructuring and
     other charges, net       -                    -         -              (94,703)

    Interest and
     financing expenses  (9,496)              (7,914)  (22,335)             (25,134)

    Other (expenses)
     income, net           (389)               2,370    (6,295)               1,564

    Income tax expense  (27,274)            (32,472)   (74,916)             (93,382)
                        -------              -------   -------              -------

    GAAP Net income
     attributable to
     Albemarle
     Corporation                   $90,512            $109,459                       $257,238 $273,810
                                   =======            ========                       ======== ========

* Excludes corporate noncontrolling interest adjustments of $(20) for the nine-month period ended September 30, 2012.

See below for a reconciliation of Net income attributable to Albemarle Corporation excluding special and non-operating pension and OPEB items, EBITDA and EBITDA excluding special and non-operating pension and OPEB items, the non-GAAP financial measures, to Net income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with GAAP. EBITDA is defined as Net income attributable to Albemarle Corporation before interest and financing expenses, income taxes, depreciation and amortization. EBITDA excluding special and non-operating pension and OPEB items is defined as EBITDA before the special and non-operating pension and OPEB items as listed below.


                              Three Months Ended                    Nine Months Ended

                                 September 30,                        September 30,
                                 -------------                        -------------

                            2013                    2012      2013                     2012
                            ----                    ----      ----                     ----

    Net income
     attributable to
     Albemarle
     Corporation                     $90,512              $109,459                             $257,238   $273,810
                                     =======              ========                             ========   ========

    Add back:

        Non-operating
         pension and
         OPEB items (net
         of tax)          (1,121)                 (1,825)   (3,365)                 (11,951)

        Special items
         (net of tax)          -                  (4,490)        -                   69,100

    Net income
     attributable to
     Albemarle
     Corporation
     excluding
     special

      and non-
       operating
       pension and
       OPEB items                    $89,391              $103,144                             $253,873   $330,959
                                     =======              ========                             ========   ========

    Net income
     attributable to
     Albemarle
     Corporation                     $90,512              $109,459                             $257,238   $273,810
                                     =======              ========                             ========   ========

    Add back:

        Interest and
         financing
         expenses          9,496                   7,914    22,335                   25,134

        Income tax
         expense          27,274                  32,472    74,916                   93,382

        Depreciation and
         amortization     27,660                  24,979    79,477                   74,428
                          ------                  ------    ------                   ------

    EBITDA               154,942                 174,824   433,966                  466,754

        Non-operating
         pension and
         OPEB items       (1,791)                 (2,887)   (5,375)                 (18,910)

        Special items          -                       -         -                   94,703

    EBITDA excluding
     special and
     non-operating
     pension and

      OPEB items                    $153,151              $171,937                             $428,591   $542,547
                                    ========              ========                             ========   ========

    Net sales                       $648,638              $661,226                           $1,924,460 $2,057,824
                                    ========              ========                           ========== ==========

    EBITDA Margin           23.9%                   26.4%     22.6%                    22.7%
                            ====                    ====      ====                     ====

    EBITDA Margin
     excluding
     special and
     non-operating
     pension

      and OPEB items        23.6%                   26.0%     22.3%                    26.4%
                            ====                    ====      ====                     ====

SOURCE Albemarle Corporation


Source: PR Newswire