Albemarle earnings down

• Advocate staff report
• Published: Oct 27, 2009 - Page: 6B

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Albemarle Corp., the Baton Rouge-based manufacturer of specialty chemicals, earned 7 percent less than it did last year for the quarter ending in September, the company reported Monday.

Despite the dip in profit, Albemarle management considered the showing a significant accomplishment during a recession that slammed the firm’s business in the final months of 2008 and, for a time, cut production at its global facilities below 50 percent of capacity.

Albemarle’s third-quarter sales of $515 million were 22 percent below the year-ago pace. It earned 57 cents per share on net income of $52.1 million in the July-September quarter. That’s down from 61 cents per share, or $56.2 million in the same period a year ago.

“Our order patterns thus far in the fourth quarter alleviate some of the concern we previously expressed about the sustainability of the recovery going forward,” said Albemarle Chairman Mark Rohr in a statement. “However, we remain cautious in this difficult environment.”

Rohr and company executives will discuss the third-quarter results this morning in a conference call with analysts. In the earnings new release issued after the close of financial markets Monday, he said Albemarle repaid $113 million in debt during the first nine months of 2009, and the company has $260 million in cash or cash-equivalents on hand.

At midyear, Albemarle lagged its 2008 sales by 28 percent. After three quarters, the company had $1.45 billion in revenue, putting Albemarle about 26 percent behind the $1.95 million in sales at the three-quarter mark in 2008.

Year-to-date earnings of $116 million are 36 percent off the 2008 pace of $181 million.

In the latest quarter, Albemarle’s catalysts — used by refineries and chemical plants to boost production — performed best among the firm’s three major segments.

Third-quarter sales of catalysts fell 18 percent from a year ago, to $189 million.

Polymer additives, hit hardest in recent months, delivered $197 million. That’s down 25 percent from a year ago.

And fine chemicals, which include industrial additives and pharmaceuticals, dropped 22 percent from a year ago, to $130 million.

Since the start of 2009, Albemarle has adjusted to declining business by cutting 10 percent of its global work force, including about 75 jobs in Baton Rouge, bringing employment in the city down to about 600.

Albemarle officials said they’re emphasizing cash generation in the short-term until more is known about the recovery, but market fundamentals for the company’s business appear to be improving.