Albemarle lifts annual outlook on robust lithium demand
2022.05.05 00:01
FILE PHOTO: A sign at the approach road leads to Albemarle’s lithium evaporation ponds at its facility in Silver Peak, Nevada, U.S., January 9, 2019. REUTERS/Ernest Scheyder
(Reuters) -Albemarle Corp, one of the world’s biggest producers of lithium, raised its full-year forecasts on Wednesday after quarterly profit more than doubled on strong demand for the metal used in electric-vehicle batteries.
Shares of the company jumped 16% in extended trading.
Lithium’s central role in the production of electric-vehicle batteries has made it a coveted commodity as global efforts to decarbonize automobiles gather pace. That has pushed up prices of the metal to record highs in a boost for producers.
Yet demand is expected to outstrip supply, with Tesla (NASDAQ:TSLA) Inc Chief Executive Elon Musk saying last month that lithium is “a limiting factor” in the growth of EVs.
Charlotte, North Carolina-based Albemarle (NYSE:ALB) posted a net income of $253.4 million, or $2.15 per share, for the first quarter ended March 31, compared with $95.7 million, or 84 cents per share, a year earlier.
The company said it now expects full-year net sales to come between $5.2 billion and $5.6 billion, compared with an earlier forecast of $4.2 billion to $4.5 billion.
It also raised its annual adjusted profit outlook to between $9.25 and $12.25 per share, from $5.65 per share to $6.65 per share.
