AT A GLANCE: Covid-19, automotive downturn hit lithium producer Albemarle’s Q2 results

In brief

• Sales from the lithium division were down by 12.6% year on year in the second quarter of 2020 to $283.7 million due to lower lithium prices.
• Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) for the lithium division dropped by 33.3% year on year to $94.5 million in the second quarter of 2020, the decline in revenues was partially offset by cost saving initiatives and efficiency improvements, the company said.
• There were no material impacts from the Covid-19 pandemic on the company’s operating plants in its global locations.
• The company anticipates a lower year-on-year performance for its lithium business due to the economic consequences of the Covid-19 pandemic.
• The company anticipates third-quarter 2020 Ebitda to be about 10-20% lower compared with the second quarter.
• Sales in the company’s bromine and catalysts divisions also fell during the second quarter of 2020.

Key figures for Q2 2020
(year-on-year percentage change)

Lithium division

Net sales
$283.7 million, down 12.6%

Adjusted Ebitda
$94.5 million, down 33.3%

Key quote:
“We expect the impact of low OEM automotive production to be felt more acutely in Q3 2020. At the same time, we are seeing impacts of lower market prices, higher inventory in the battery channel, and reduced demand in the glass and ceramics markets.”