Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) January 26, 2010

 

 

ALBEMARLE CORPORATION

(Exact name of Registrant as specified in charter)

 

Virginia    001-12658    54-1692118

(State or other jurisdiction

of incorporation)

   (Commission file number)   

(IRS employer

identification no.)

451 Florida Street, Baton Rouge, Louisiana    70801
(Address of principal executive offices)    (Zip code)

Registrant’s telephone number, including area code

(225) 388-8011

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a- 12 under the Exchange Act (17 CFR 240. 14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240. 14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 1 3e-4(c) under the Exchange Act (17 CFR 240.1 3e-4(c))

 

 

 


Section 2 — Financial Information

 

Item 2.02. Results of Operations and Financial Condition.

On January 25, 2010, Albemarle Corporation (the “Company”) issued a press release regarding its earnings for the fourth quarter and year ended December 31, 2009. A copy of this release is being furnished as Exhibit 99.1 hereto and incorporated herein by reference. In addition, on January 26, 2010, the Company will hold a teleconference for analysts and media to discuss results for the fourth quarter and year ended December 31, 2009. The teleconference is webcast on the Company’s website at www.albemarle.com.

The press release attached as Exhibit 99.1 includes earnings or per share amounts excluding special items and one time tax items, which are financial measures that are not required by, or presented in accordance with, accounting principles generally accepted in the United States (“GAAP”). These items are presented to exclude the impact of certain non-recurring items on the Company’s results. The Company has reported earnings or per share amounts excluding special items and one time tax items because management believes that these financial measures are more reflective of the Company’s operations, provides transparency to investors and enables period-to-period comparability of financial performance. Earnings or per share amounts excluding special items and one time tax items should not be considered as an alternative to earnings or per share amounts determined in accordance with GAAP. The Company has included in the press release reconciliation information for earnings or per share amounts excluding special items and one time tax items, the non-GAAP financial measures, to earnings or per share amounts, as applicable, the most directly comparable financial measures calculated and reported in accordance with GAAP.

The press release attached as Exhibit 99.1 also includes net debt, which is a financial measure that is not required by, or presented in accordance with, GAAP. The Company has presented net debt because management believes that net debt is helpful in analyzing leverage and uses it as a performance measure. Net debt should not be considered as an alternative to total debt determined in accordance with GAAP. The Company has included in the press release a reconciliation of net debt, a non-GAAP financial measure, to total debt, the most directly comparable financial measure calculated and reported in accordance with GAAP.

In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

Section 9 — Financial Statements and Exhibits

 

Item 9.01. Financial Statements and Exhibits.

 

  (c) Exhibits.

99.1    Press release, dated January 25, 2010, issued by the Company.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: January 26, 2010

 

ALBEMARLE CORPORATION
By:   /s/ Nicole C. Daniel
 

Nicole C. Daniel

Assistant General Counsel and

Assistant Secretary

 


EXHIBIT INDEX

 

Exhibit

Number

  

Exhibit

99.1    Press release, dated January 25, 2010, issued by the Company.

 

Exhibit 99.1

Exhibit 99.1

LOGO

Albemarle Reports Fourth Quarter and Full Year 2009 Results

 

 

Fourth quarter and full year highlights:

 

   

Fourth quarter net sales of $558.2 million, up 8% year-over-year and sequentially.

 

   

Fourth quarter earnings of $62.3 million or $0.68 per share. Excluding special items and one-time tax benefits, fourth quarter earnings were $58.7 million, or $0.64 per share, up 54% year over year and 12% sequentially.

 

   

All segments experienced year-over-year and sequential increases in segment income and margin for the quarter.

 

   

Net debt reduction of $171 million for the year fueled by reduced working capital.

 

     Fourth Quarter Ended
December 31,
    Year Ended
December 31,
 
In thousands of dollars, except per share amounts    2009     2008     2009     2008  

Net Sales

   $ 558,228      $ 517,725      $ 2,005,394      $ 2,467,115   

Operating Profit (Loss)

   $ 63,437      $ (17,579   $ 186,280      $ 220,917   

Net Income attributable to Albemarle Corporation

   $ 62,345      $ 13,111      $ 178,368      $ 194,202   

Diluted earnings per share

   $ 0.68      $ 0.14      $ 1.94      $ 2.09   

Special items per share

   $ (0.08   $ (0.52   $ (0.17   $ (0.54

Per share amount for one time tax items

   $ 0.12      $ 0.25      $ 0.25      $ 0.25   

Diluted earnings per share excluding special and
one time tax items

   $ 0.64      $ 0.41      $ 1.86      $ 2.39   

BATON ROUGE, La., – January 25 — Albemarle Corporation (NYSE: ALB) reported fourth quarter 2009 earnings of $62.3 million, or 68 cents per share, compared to $13.1 million, or 14 cents per share, for the fourth quarter of 2008. Fourth quarter 2009 results include $11.6 million in pre-tax charges ($7.6 million or 8 cents per share after tax) for restructuring and other costs related principally to planned reductions in force and to the write-off of certain assets at our Arkansas facility related to the recently announced agreement with Chemtura, which was approved on January 21, 2010 by the court presiding over Chemtura’s Chapter 11 bankruptcy proceeding. Fourth quarter results also include $11.3 million, or 12 cents per share, in one-time tax benefits related principally to the settlement of the 2005-2007 tax audits with the U.S. Internal Revenue Service. Net sales in the fourth quarter of 2009 totaled $558.2 million compared to fourth quarter 2008 net sales of $517.7 million.

Earnings for 2009 were $178.4 million, or $1.94 per share, compared to $194.2 million, or $2.09 per share, for 2008. Excluding the second quarter 2009 after-tax special item of $8.2 million related to Port de Bouc, the fourth quarter $7.6 million after tax restructuring and other charges and $22.8 million in one-time

 

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benefits comprised mainly from the settlement of prior year tax audits, earnings for 2009 were $171.4 million, or $1.86 per share. Excluding special and one-time tax items, earnings for 2008 were $221.3 million, or $2.39 per share. Full year net sales for 2009 were $2.01 billion compared to $2.47 billion for 2008.

Commenting on results, Mark C. Rohr, Chairman and CEO stated, “Our fourth quarter performance demonstrates tangible improvements in sales and profitability, resulting in strong earnings of $0.64 per share, excluding special and one-time tax items. All three business segments delivered solid quarterly year-over-year profit growth, improving the Company’s segment income margin to 16.7%, the highest operating margin since second quarter of 2007. Our plants were able to maintain efficient and cost effective production rates throughout the quarter while we continued our efforts to better manage inventory. Three consecutive quarters of improved sales volumes, disciplined expense management and a keen focus on cash generation, enabled us to end 2009 with a strong balance sheet, including $309 million in cash and equivalents and a reduction of net debt of over $170 million for the year. Overall, we are encouraged by the trends we are seeing in our businesses as well as the continued focused execution by our employees across the globe. I expect 2010 will be a year of strong overall revenue and profit growth for our company and believe we have the financial flexibility and capability to opportunistically fund future growth initiatives.”

Quarterly Segment Results

Polymer Solutions delivered net sales for the fourth quarter of 2009 of $204.6 million, a 38 percent increase versus the fourth quarter of 2008 and a 4% increase from third quarter 2009, due primarily to improved volumes in our brominated flame retardants portfolio. Polymer Solutions segment income for the fourth quarter of 2009 was $32.4 million, more than six times the fourth quarter of 2008 segment income of $5.2 million. The significant improvement in segment income is due primarily to increased flame retardant volumes and resultant improved fixed cost absorption.

Catalysts generated net sales for the fourth quarter of 2009 of $208 million, flat compared to fourth quarter 2008, but an increase of 10 percent versus the third quarter of 2009 due primarily to increased volumes in refinery catalysts. Catalysts segment income for the fourth quarter of 2009 was $41.8 million versus the fourth quarter of 2008 of $31.4 million. This 33% improvement is attributable primarily to favorable product mix, input costs and royalty income in refinery catalysts. The Catalyst segment delivered strong annual sales and profits for the year, despite the difficult refining environment.

Fine Chemicals net sales in the fourth quarter of 2009 were $145.7 million, a 10 percent decrease versus the fourth quarter of 2008, due primarily to decreased clear brine fluids volumes. Fourth quarter volume growth in our bromine portfolio drove a 12% sequential increase in segment net sales. Fine Chemicals segment income for the fourth quarter of 2009 was $19.0 million, a 7% increase compared to fourth quarter 2008. Improved sales and production volumes drove a 33% increase in segment income from third quarter 2009.

 

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Cash Flow

In 2009, cash flow from operations funded net repayments of debt of over $120 million, capital expenditures for plant machinery and equipment of over $100 million, dividends to shareholders of $44 million and $25 million in voluntary contributions to our U.S. defined benefit plans. The Company repurchased approximately 175,000 shares of common stock for an aggregate cost of $5.8 million during the fourth quarter. During the quarter, interest and financing expenses was $6.0 million versus fourth quarter 2008 expenses of $9.7 million.

At December 31, 2009, the Company had $309 million in cash and cash equivalents. In addition, the Company has available commitments under existing lines of credit of approximately $450 million and no significant debt maturities before 2013.

Taxes

Excluding special items and the one-time net tax benefits, our fourth quarter effective income tax rate was approximately 15 percent, resulting in a full year 2009 effective income tax rate of 13 percent. The tax rate continues to be influenced by the level and mix of income and has benefited from a more favorable mix of income in lower tax jurisdictions.

During the fourth quarter 2009, we finalized the settlement of the 2005-2007 tax audits with the U.S. Internal Revenue Service. The results of this settlement contributed a non-cash tax benefit for the fourth quarter of 2009 of $12.1 million, or 13 cents per share, and to the $21.3 million or 23 cents per share of non-cash tax benefits for the full year.

Outlook

Despite some areas of continued economic weakness, we have seen modest but steady improvement in most of our businesses from the second quarter of 2009. As we enter 2010, we expect our overall performance to follow the gradually improving market conditions through the year. Rising raw material, energy and other costs such as pension expense may provide headwinds in 2010 that were not present in 2009. We expect operating efficiency gains, new product sales, particularly in alternative fuels and improving consumer appetite for electronics to help us overcome the headwinds and provide the basis for both top and bottom-line growth for Albemarle in 2010.

Earnings Call

The Company’s performance for the fourth quarter ended December 31, 2009 will be discussed on a conference call at 10:00 AM Eastern Standard time on January 26, 2010, which can be accessed through Albemarle’s website under Investor Information at www.albemarle.com.

Albemarle Corporation, headquartered in Baton Rouge, Louisiana, is a leading global developer, manufacturer, and marketer of highly-engineered specialty chemicals for consumer electronics, petroleum

 

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refining, utilities, packaging, construction, automotive/transportation, pharmaceuticals, crop protection, food-safety and custom chemistry services. The Company is committed to global sustainability and is advancing its eco-practices and solutions in its three business segments, Polymer Solutions, Catalysts, and Fine Chemicals. Albemarle employs over 4,100 people and serves customers in approximately 100 countries. To learn more, visit www.albemarle.com.

Forward-Looking Statements

Some of the information presented in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although we believe our expectations as reflected are based on reasonable assumptions within the bounds of our knowledge of our business and operations, there can be no assurance that actual results will not differ materially. Factors that could cause actual results to differ from expectations include, without limitation: deterioration in economic and business conditions; future financial and operating performance of our major customers and industries served by us; the inability to pass through increases in costs and expenses for raw materials and energy; competition from other manufacturers; changes in demand for our products; the gain or loss of significant customers; fluctuations in foreign currencies; and increased government regulation of our operations or our products. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found under “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the period ended December 31, 2008 and our 2009 Quarterly Reports on Form 10-Q and in our other public filings with the Securities and Exchange Commission. Readers are urged to review and consider carefully the disclosures we make in our filings with the Securities and Exchange Commission.

 

4


Albemarle Corporation and Subsidiaries

Consolidated Statements of Income

(In Thousands of Dollars, Except Share and Per Share Amounts) (Unaudited)

 

    

Fourth Quarter Ended

December 31,

   

Year Ended

December 31,

 
      2009     2008     2009     2008  

Net sales

   $ 558,228      $ 517,725      $ 2,005,394      $ 2,467,115   

Cost of goods sold

     408,769        394,626        1,521,532        1,859,441   

Gross profit

     149,459        123,099        483,862        607,674   

Selling, general and administrative expenses

     59,542        64,116        212,628        255,132   

Research and development expenses

     14,837        15,507        60,918        67,292   

Port de Bouc charges

     —          38,544  (a)      12,393 (a)      38,544  (a) 

Restructuring and other charges

     11,643  (b)      22,511  (b)      11,643 (b)      25,789  (b) 

Operating profit (loss)

     63,437        (17,579     186,280        220,917   

Interest and financing expenses

     (6,023     (9,703     (24,584     (38,175

Other (expense) income, net

     (1,911     (1,465     (1,423     601   

Income before income tax benefit and equity
in net income of unconsolidated investments

     55,503        (28,747     160,273        183,343   

Income tax benefit

     5,353  (c)      45,945        7,028 (c)      6,539   

Income before equity in net income of
unconsolidated investments

     60,856        17,198        167,301        189,882   

Equity in net income of unconsolidated
investments (net of tax)

     4,360        1,151        22,322        23,126   

Net income

     65,216        18,349  (d)      189,623        213,008  (d) 

Net income attributable to noncontrolling interests

     (2,871     (5,238 )(d)      (11,255     (18,806 )(d) 

Net income attributable to Albemarle Corporation

   $ 62,345      $ 13,111  (d)    $ 178,368      $ 194,202  (d) 

Basic earnings per share

     $0.68        $0.14  (e)      $1.95        $2.12  (e) 

Diluted earnings per share

     $0.68        $0.14  (e)      $1.94        $2.09  (e) 

Weighted-average common shares outstanding - Basic

     91,605        91,090  (e)      91,512        91,657  (e) 

Weighted-average common shares outstanding - Diluted

     92,316        92,033  (e)      92,046        92,741  (e) 

See accompanying notes to the condensed consolidated financial information.

 

5


Albemarle Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(In Thousands of Dollars) (Unaudited)

 

     December 31,
2009
   December 31,
2008

ASSETS

     

Cash and cash equivalents

   $ 308,791    $ 253,303

Other current assets

     723,296      925,620
             

Total current assets

     1,032,087      1,178,923
             

Property, plant and equipment

     2,406,129      2,322,996

Less accumulated depreciation
and amortization

     1,379,246      1,310,648
             

Net property, plant and equipment

     1,026,883      1,012,348

Other assets and intangibles

     712,587      681,446
             

Total assets

   $ 2,771,557    $ 2,872,717
             

LIABILITIES & EQUITY

     

Current portion of long-term debt

   $ 36,310    $ 26,202

Other current liabilities

     322,111      412,165
             

Total current liabilities

     358,421      438,367

Long-term debt

     776,403      906,062

Other noncurrent liabilities

     301,974      336,967

Deferred income taxes

     81,441      74,838

Albemarle Corporation shareholders’ equity (d)

     1,205,696      1,065,771

Noncontrolling interests (d)

     47,622      50,712
             

Total liabilities & equity

   $ 2,771,557    $ 2,872,717
             

See accompanying notes to the condensed consolidated financial information.

 

6


Albemarle Corporation and Subsidiaries

Selected Cash Flows Data

(In Thousands of Dollars) (Unaudited)

 

     Year Ended
December 31,
 
     2009     2008  

Cash and cash equivalents at beginning of year

   $ 253,303      $ 130,551   

Cash and cash equivalents at end of year

   $ 308,791      $ 253,303   

Sources of cash and cash equivalents:

    

Net income (d)

     189,623        213,008   

Proceeds from borrowings

     14,300        255,246   

Proceeds from exercise of stock options

     4,153        3,931   

Uses of cash and cash equivalents:

    

Capital expenditures

     (100,786     (99,736

Acquisitions, net of cash acquired (f)

     (4,017     (63,960

Purchases of common stock

     (5,812     (168,952

Repayments of long-term debt

     (134,332     (48,176

Dividends paid to shareholders

     (44,432     (42,321

Dividends paid to noncontrolling interests

     (11,709     (13,614

Pension and postretirement contributions

     (39,700     (40,279

Payments relating to Port de Bouc facility disposition

     (16,440     —     

Payments relating to restructuring and other charges

     (20,491     (2,384

Non-cash items:

    

Depreciation and amortization

     100,513        111,685   

One-time net tax benefit, net of cash received

     (22,743     (20,600

Special charges for Port de Bouc facility disposition (a)

     12,393        38,544   

Restructuring and other charges (b)

     11,643        25,789   

See accompanying notes to the condensed consolidated financial information.

 

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Albemarle Corporation and Subsidiaries

Consolidated Summary of Segment Results

(In Thousands of Dollars) (Unaudited)

 

     Fourth Quarter Ended
December 31,
    Year Ended
December 31,
 
     2009     2008     2009     2008  

Net sales:

        

Polymer Solutions

   $ 204,570      $ 148,671      $ 697,206      $ 915,515   

Catalysts

     207,962        207,718        808,063        923,763   

Fine Chemicals

     145,696        161,336        500,125        627,837   
                                

Total net sales

   $ 558,228      $ 517,725      $ 2,005,394      $ 2,467,115   
                                

Segment operating profit:

        

Polymer Solutions

   $ 32,218      $ 6,263      $ 63,780      $ 92,600   

Catalysts

     39,377        30,098        129,691        142,715   

Fine Chemicals

     20,064        21,912        52,589        99,895   
                                

Subtotal

   $ 91,659      $ 58,273      $ 246,060      $ 335,210   
                                

Equity in net income of unconsolidated investments:

        

Polymer Solutions

   $ 1,933      $ (8   $ 3,496      $ 3,446   

Catalysts

     2,454        1,283        18,934        19,881   

Fine Chemicals

     —          —          —          —     

Corporate & other

     (27     (124     (108     (201
                                

Total equity in net income of unconsolidated investments

   $ 4,360      $ 1,151      $ 22,322      $ 23,126   
                                

Net (income) loss attributable to noncontrolling interests:

        

Polymer Solutions

   $ (1,741   $ (1,040   $ (5,886   $ (7,223

Catalysts

     —          —          —          —     

Fine Chemicals

     (1,069     (4,118     (5,471     (11,422

Corporate & other

     (61     (80     102        (161
                                

Total net income attributable to noncontrolling interests

   $ (2,871   $ (5,238   $ (11,255   $ (18,806
                                

Segment income:

        

Polymer Solutions

   $ 32,410      $ 5,215      $ 61,390      $ 88,823   

Catalysts

     41,831        31,381        148,625        162,596   

Fine Chemicals

     18,995        17,794        47,118        88,473   
                                

Total segment income

     93,236        54,390        257,133        339,892   

Corporate & other

     (16,667     (15,001     (35,750     (50,322

Port de Bouc charges (a)

     —          (38,544     (12,393     (38,544

Restructuring and other charges (b)

     (11,643     (22,511     (11,643     (25,789

Interest and financing expenses

     (6,023     (9,703     (24,584     (38,175

Other (expense) income, net

     (1,911     (1,465     (1,423     601   

Income tax benefit (c)

     5,353        45,945        7,028        6,539   
                                

Net income attributable to Albemarle Corporation (d)

   $ 62,345      $ 13,111      $ 178,368      $ 194,202   
                                

See accompanying notes to the condensed consolidated financial information.

 

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Notes to the Condensed Consolidated Financial Information

 

(a) The fourth quarter and year ended December 31, 2008 include a charge amounting to $38.5 million ($33.4 million after income taxes, or 36 cents per share) that relates to the divestiture of the Port de Bouc, France facility to International Chemical Investors Group S.A. effective December 31, 2008. The charge is principally due to the write-off of net asset values and other exit costs. The year ended December 31, 2009 included charges amounting to $12.4 million ($8.2 million after income taxes, or 9 cents per share) that related to the costs of the final contract settlement arising from this disposition.

 

(b) The fourth quarter and year ended December 31, 2008 include charges amounting to $22.5 million ($14.7 million after income taxes, or 16 cents per share) and $25.8 million ($16.8 million after income taxes, or 18 cents per share), respectively, that relate to restructuring activities, principally reductions in force at various Company locations. Fourth quarter and year ended December 31, 2009 results include $11.6 million in pre-tax charges ($7.6 million or 8 cents per share after tax) for restructuring and other costs, related principally to planned reductions in force and to the write-off of assets at our Arkansas facility.

 

(c) The fourth quarter and year ended December 31, 2009 include $11.3 million, or 12 cents per share, in one-time tax benefits due mainly from the final settlement of the 2005-2007 tax audits with the U.S. Internal Revenue Service. The year ended December 31, 2009 also includes a $9.2 million (10 cents per share) one time benefit due mainly to a tax issue settlement for the years 2005 through 2007 with the U.S. Internal Revenue Service, a $4.2 million benefit associated with the Port de Bouc charge described in footnote (a), and a non-recurring net benefit of $2.5 million (3 cents per share) resulting from adjustments related to prior periods.

 

(d) As adjusted due to the adoption of new accounting guidance which requires retroactive application for the presentation of noncontrolling interests on the balance sheet and statements of income.

 

(e) As adjusted due to the adoption of new accounting guidance associated with share-based payment transactions considered to be participating securities. Basic and diluted weighted-average common shares outstanding increased by approximately 344,000 shares and 234,000 shares, respectively, for the three-month period ended December 31, 2008. Basic and diluted earnings per share decreased one cent for the year ended December 31, 2008 as a result of an increase in our basic weighted-average common shares outstanding of approximately 319,000 shares and 211,000 shares, respectively.

 

(f) On June 30, 2008, we acquired the remaining 25 percent of our majority owned Polymer Solutions business segment joint ventures in China: Ningbo Jinhai Albemarle Chemical and Industry Company Limited and Shanghai Jinhai Albemarle Fine Chemicals Company Limited. The acquisition of the remaining interests totaled approximately $19.9 million. During the year ended December 31, 2008, we also made payments of approximately $21.6 million associated with the prior July 31, 2007 acquisition of controlling interests in the joint ventures. In addition, effective July 31, 2008, we acquired Sorbent Technologies Corporation, a full-service power plant mercury-control provider, for approximately $22.4 million. Also, in 2009 we made payments of approximately $3.3 million associated with our 75% interest in the Sinobrom Albemarle Bromine Chemicals (Shandong) Company Limited joint venture formed on December 5, 2008.

Additional Information

It should be noted that earnings or per share amounts excluding special items and one time tax items is a financial measure that is not required by, or presented in accordance with, accounting principles generally accepted in the United States, or GAAP. It is presented here to exclude the impact of certain non-recurring items on our results. We believe this measure is more reflective of our operations, provides transparency to investors and enables period-to-period comparability of financial performance.

 

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Net debt is a supplemental financial measure that is not required by, or presented in accordance with GAAP. We believe net debt is helpful in analyzing leverage and as a performance measure. We define net debt as total debt plus the portion of outstanding joint venture indebtedness guaranteed by us (or less the portion of outstanding joint venture indebtedness consolidated but not guaranteed by us), less cash and cash equivalents. Set forth below is a reconciliation of net debt, a non-GAAP financial measure, to total debt, the most directly comparable financial measure calculated and reported in accordance with GAAP, as of December 31, 2009, September 30, 2009, June 30, 2009 and December 31, 2008.

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 Investor Information section of our website at www.albemarle.com, under “Non-GAAP Reconciliations” under “Investor Relations.”

ALBEMARLE CORPORATION AND SUBSIDIARIES

Net Debt Reconciliation

(In Thousands of Dollars)

(Unaudited)

 

     Year Ended
December 31,
2009
    Third Quarter
Ended

September 30,
2009
    Second Quarter
Ended
June 30, 2009
    Year Ended
December 31,
2008
 

Total debt

   $ 812,713      $ 820,819      $ 847,327      $ 932,264   

JV debt consolidated by the Company but guaranteed by others

     (25,183     (27,272     (27,182     (29,064

Less: Cash and cash equivalents

     (308,791     (260,434     (172,476     (253,303
                                

Net Debt

   $ 478,739      $ 533,113      $ 647,669      $ 649,897   
                                

See accompanying notes to the condensed consolidated financial information.

 

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