Lithium producer Albemarle ups 2022 guidance on higher contract prices

Lithium producer Albemarle Corp. late Monday upgraded its guidance for the year, mostly thanks to additional lithium contract renegotiations following blowout first-quarter earnings earlier this month. Albemarle said it expects fiscal 2022 sales between $5.8 billion and $6.2 billion, compared with a prior guidance of sales between $5.2 billion and $5.6 billion, and adjusted per-share earnings between $12.30 and $15, from $9.25 to $12.25 a share. It kept expectations for cash expenditures the same, between $1.3 billion and $1.5 billion. The company expects average realized pricing for lithium to be up about 140% year-over-year from variable-price contracts and increased market pricing, it said. Volume is expected to be up between 20% and 30% due to new capacity, unchanged from the previous outlook, the company said. Shares of Albemarle rose 0.5% in the extended session Monday after ending the regular trading day up 2.8%.

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