Albemarle Corporation (NYSE: ALB) reported fourth quarter 2010 earnings of $85.0 million, or 92 cents per share, compared to fourth quarter 2009 earnings of $62.3 million, or 68 cents per share.  The Company reported net sales of $605.0 million in the fourth quarter 2010 compared to net sales of $558.2 million in the fourth quarter 2009.

Earnings for the full year 2010 were $323.7 million, or $3.51 per share, compared to $178.4 million, or $1.94 per share, for 2009.  Excluding the $7.0 million ($4.6 million after tax, or 5 cents per share) charge for restructuring costs at our Bergheim, Germany site in the first quarter 2010, and the special and one-time tax items reported for 2009, earnings for 2010 were $328.3 million, or $3.56 per share, and earnings for 2009 were $171.4 million, or $1.86 per share.  Total net sales for 2010 were $2.36 billion compared to $2.01 billion for 2009.  

“Our results in the fourth quarter cap a year of tremendous progress for our Company, demonstrating the strength of our portfolio and our team’s ability to drive operational efficiencies,” said Mark C. Rohr, Chairman and CEO of Albemarle.  “We ended 2010 with very solid results, achieving record annual earnings of $3.56 per share, all-time high EBITDA of $545 million and a solid balance sheet to support strategic growth opportunities.  As we begin the new year, our businesses are off to a strong start. We expect ongoing demand for our products, combined with the strength of our core technologies and key market insights to drive solid earnings growth in 2011.”

Quarterly Segment Results

Polymer Solutions delivered net sales in the fourth quarter 2010 of $220.0 million, an 8 percent increase over net sales in the fourth quarter 2009, due primarily to favorable price and mix, partly offset by lower volumes and unfavorable currency impacts.  Polymer Solutions segment income for the fourth quarter 2010 was $51.0 million, a 57 percent increase from $32.4 million in the fourth quarter 2009.  This increase was due primarily to favorable pricing and mix, partly offset by lower volumes.

Catalysts generated net sales in the fourth quarter 2010 of $231.6 million, an 11 percent increase over net sales in the fourth quarter 2009, due primarily to higher volumes and favorable pricing, partly offset by unfavorable currency impacts.  Catalysts segment income for the fourth quarter 2010 was $58.5 million, a 40 percent increase from $41.8 million in the fourth quarter 2009.  This improvement was attributable primarily to higher volumes and favorable pricing, improved realization of metals costs in hydroprocessing catalysts and higher equity income from our Catalysts joint ventures.  

Fine Chemistry net sales in the fourth quarter 2010 were $153.4 million, a five percent increase over net sales in the fourth quarter 2009, due primarily to favorable pricing, mix and sales volumes, partly offset by unfavorable currency impacts.  Fine Chemistry segment income for the fourth quarter 2010 was $26.3 million, up 39 percent compared to $19.0 million in the fourth quarter 2009.  This improvement in segment income was due primarily to favorable pricing and mix as well as favorable sales and production volumes, partly offset by higher variable input costs.

Corporate and Other

Corporate and other expense for the fourth quarter and year ended December 31, 2010 was $20.8 million and $73.0 million, respectively.  The increase over the comparable periods in 2009 was due mainly to higher personnel-related costs.  In addition, the year ended December 31, 2009 included a favorable $7.8 million adjustment associated with the reversal of certain long-term employee benefit accruals.

Cash Flow

In 2010, we incurred capital expenditures for plant, machinery and equipment of $75.5 million, dividends to shareholders of $49.6 million and $80.1 million in contributions to our U.S. defined benefit pension plans.  The Company repurchased approximately 400,356 shares of its common stock for an aggregate cost of $14.9 million during the year.  During December 2010, we sold $350 million aggregate principal amount of 4.50% senior unsecured notes due 2020.  The proceeds from this issuance have been used primarily to pay down outstanding borrowings under our revolving credit facility and to make voluntary pension contributions during December 2010 and January 2011.  Interest and financing expenses for the fourth quarter 2010 were $7.5 million versus fourth quarter 2009 expenses of $6.0 million due primarily to higher average interest rates on our outstanding borrowings during the 2010 period.

At December 31, 2010, the Company had $529.7 million in cash and cash equivalents.  The Company has additional capacity to borrow in excess of $791 million under existing lines of credit with no significant debt maturities before 2013.  

Taxes

Our fourth quarter and full year 2010 effective income tax rates were 22.6 percent and 23.8 percent, respectively, before special items.  Excluding special and one-time tax items, our fourth quarter and full year 2009 effective income tax rates were 14.9 percent and 13.0 percent, respectively.  Our effective tax rate continues to be influenced by the level and geographic mix of income and has benefited from a favorable mix of income in lower tax jurisdictions.  

Outlook

Continued success with innovative product development, further improvements in productivity, positive market trends and implementation of announced price increases should provide the basis for both top and bottom-line growth in 2011. As we further leverage our core technologies and strategic partnerships around the world, we are positioning Albemarle for long-term growth.

About Albemarle

Albemarle Corporation, headquartered in Baton Rouge, Louisiana, is a leading global developer, manufacturer, and marketer of highly-engineered specialty chemicals for consumer electronics, petroleum 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 Chemistry. Corporate Responsibility Magazine selected Albemarle to its prestigious "100 Best Corporate Citizens" list for 2010.  Albemarle employs approximately 4,000 people and serves customers in approximately 100 countries. 

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