-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Vyt7eJbhdXD/e/+kNRYxV7aeQjDD66A9bqgzC+LsDIjHg1ch3waf3Sfv/vFoEx/B Hd1eUYPdDh2bkhWD3UEF+Q== 0000915913-98-000012.txt : 19980803 0000915913-98-000012.hdr.sgml : 19980803 ACCESSION NUMBER: 0000915913-98-000012 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980630 FILED AS OF DATE: 19980731 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALBEMARLE CORP CENTRAL INDEX KEY: 0000915913 STANDARD INDUSTRIAL CLASSIFICATION: PLASTICS, MATERIALS, SYNTH RESINS & NONVULCAN ELASTOMERS [2821] IRS NUMBER: 541692118 STATE OF INCORPORATION: VA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-12658 FILM NUMBER: 98675250 BUSINESS ADDRESS: STREET 1: 451 FLORIDA STREET STREET 2: P O BOX 1335 CITY: BATON ROUGE STATE: LA ZIP: 70801 BUSINESS PHONE: 504-388-74 MAIL ADDRESS: STREET 1: 451 FLORIDA STREET CITY: BATON ROUGE STATE: LA ZIP: 70801 FORMER COMPANY: FORMER CONFORMED NAME: ECHEM INC DATE OF NAME CHANGE: 19931208 10-Q 1 1 Page 1 of 16 Pages SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarterly Period Ended June 30, 1998 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Transition Period from to ----------------- ----------------- Commission File Number 1-12658 ALBEMARLE CORPORATION ----------------------- (Exact name of registrant as specified in its charter) VIRGINIA 54-1692118 - -------------------------- -------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 330 SOUTH FOURTH STREET P. O. BOX 1335 RICHMOND, VIRGINIA 23210 - --------------------------- --------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code - (804) 788-6000 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ---- ---- Number of shares of common stock, $.01 par value, outstanding as of June 30, 1998: 52,797,116 2 ALBEMARLE CORPORATION I N D E X Page Number --------- PART I. FINANCIAL INFORMATION ITEM 1. Financial Statements Consolidated Balance Sheets - June 30, 1998 and December 31, 1997 3-4 Consolidated Statements of Income - Three and Six Months Ended June 30, 1998 and 1997 5 Consolidated Statements of Comprehensive Income - Three and Six Months Ended June 30, 1998 and 1997 6 Condensed Consolidated Statements of Cash Flows - Six Months Ended June 30, 1998 and 1997 7 Notes to the Consolidated Financial Statements 8-10 ITEM 2. Management's Discussion and Analysis of Results of Operations and Financial Condition and Outlook 11-15 PART II. OTHER INFORMATION ITEM 1. Legal Proceedings 15 ITEM 6. Exhibits and Reports on Form 8-K 15 SIGNATURES 16 3 PART I - FINANCIAL INFORMATION - ------------------------------ ITEM 1. Financial Statements -------------------- ALBEMARLE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS --------------------------- (Dollars In Thousands) ----------------------
June 30, December 31, 1998 1997 ---------------- ------------------ (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 43,091 $ 34,322 Accounts receivable, less allowance for doubtful accounts (1998 - $2,612; 1997 - $2,449) 132,499 154,421 Inventories: Finished goods 81,553 65,998 Raw materials 10,873 7,424 Stores, supplies and other 16,881 16,861 ---------------- ------------------ 109,307 90,283 Deferred income taxes and prepaid expenses 18,227 17,710 ---------------- ------------------ Total current assets 303,124 296,736 ---------------- ------------------ Property, plant and equipment, at cost 1,214,345 1,188,252 Less accumulated depreciation and amortization 718,417 691,612 ---------------- ------------------ Net property, plant and equipment 495,928 496,640 Other assets and deferred charges 84,147 77,204 Goodwill and other intangibles, net of amortization 16,502 17,601 ---------------- ------------------ Total assets $ 899,701 $ 888,181 ---------------- ------------------ ---------------- ------------------ See accompanying notes to the consolidated financial statements.
4 ALBEMARLE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ---------------------------- (Dollars In Thousands) ----------------------
June 30, December 31, 1998 1997 ---------------- ------------------ (Unaudited) LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 48,527 $ 50,668 Long-term debt, current portion 380 379 Accrued expenses 53,418 47,578 Dividends payable 4,781 4,952 Income taxes payable 12,537 8,983 --------------- ------------------ Total current liabilities 119,643 112,560 --------------- ------------------ Long-term debt 83,027 91,414 Other noncurrent liabilities 72,903 69,704 Deferred income taxes 99,008 97,167 Shareholders' equity: Common stock, $.01 par value, issued - 52,797,116 in 1998 and 53,886,802 in 1997, respectively 528 539 Additional paid-in capital 192,415 218,841 Accumulated other comprehensive income (loss) (2,111) (1,445) Retained earnings 334,288 299,401 --------------- ------------------ Total shareholders' equity 525,120 517,336 --------------- ------------------ Total liabilities and shareholders' equity $ 899,701 $ 888,181 --------------- ------------------ --------------- ------------------ See accompanying notes to the consolidated financial statements.
5 ALBEMARLE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME --------------------------------- (In Thousands Except Per-Share Amounts) --------------------------------------- (Unaudited)
Three Months Ended Six Months Ended June 30, June 30, ------------------------- ------------------------ 1998 1997 1998 1997 ------------ ------------ ----------- ------------ Net sales $204,103 $207,675 $419,252 $406,069 Cost of goods sold 137,925 139,866 285,253 271,898 ------------ ------------ ----------- ------------ Gross profit 66,178 67,809 133,999 134,171 Selling, general and administrative expenses 27,089 27,669 53,664 54,268 Research and development expenses 6,889 7,828 13,943 15,225 ------------ ------------ ----------- ------------ Operating profit 32,200 32,312 66,392 64,678 Interest and financing expenses 755 210 1,707 407 Other income, net (516) (459) (1,182) (521) ------------ ------------ ----------- ------------ Income before income taxes 31,961 32,561 65,867 64,792 Income taxes 10,150 12,198 21,407 24,252 ------------ ------------ ----------- ------------ NET INCOME $ 21,811 $ 20,363 $ 44,460 $ 40,540 ------------ ------------ ----------- ------------ ------------ ------------ ----------- ------------ BASIC EARNINGS PER SHARE $ .41 $ .37 $ .83 $ .74 ------------ ------------ ----------- ------------ ------------ ------------ ----------- ------------ Shares used to compute basic earnings per share 53,069 55,204 53,269 55,125 ------------ ------------ ----------- ------------ ------------ ------------ ----------- ------------ DILUTED EARNINGS PER SHARE $ .41 $ .37 $ .83 $ .73 ------------ ------------ ----------- ------------ ------------ ------------ ----------- ------------ Shares used to compute diluted earnings per share 53,681 55,599 53,831 55,567 ------------ ------------ ----------- ------------ ------------ ------------ ----------- ------------ Cash dividends declared per share of common stock $ .09 $ .07 $ .18 $ .14 ------------ ------------ ----------- ------------ ------------ ------------ ----------- ------------ See accompanying notes to the consolidated financial statements.
6 ALBEMARLE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ----------------------------------------------- (Dollars In Thousands) ---------------------- (Unaudited)
Three Months Ended Six Months Ended June 30, June 30, ------------------------- ------------------------ 1998 1997 1998 1997 ------------ ------------ ----------- ------------ Net income $ 21,811 $ 20,363 $ 44,460 $ 40,540 Other comprehensive income, net of tax: Foreign currency translation adjustments 1,310 (2,190) (666) (13,482) ------------ ------------ ----------- ------------ Comprehensive income $ 23,121 $ 18,173 $ 43,794 $ 27,058 ------------ ------------ ----------- ------------ ------------ ------------ ----------- ------------ See accompanying notes to the consolidated financial statements.
7 ALBEMARLE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ----------------------------------------------- (Dollars In Thousands) ---------------------- (Unaudited)
Six Months Ended June 30, -------------------------- 1998 1997 ------------- ------------ CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR $34,322 $14,242 CASH FLOWS FROM OPERATING ACTIVITIES: Net income 44,460 40,540 Adjustments to reconcile net income to cash flows from operating activities: Depreciation and amortization 36,243 33,607 Working capital decrease (increase) excluding cash and cash equivalents 8,699 (33,746) Other, net (2,091) (1,040) -------------- ------------ Net cash provided from operating activities 87,311 39,361 -------------- ------------ CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures and acquisition costs (35,761) (52,301) Other, net 461 809 -------------- ------------ Net cash used in investing activities (35,300) (51,492) -------------- ------------ CASH FLOWS FROM FINANCING ACTIVITIES: Purchases of common stock (26,698) -- Repayments of long-term debt (10,926) (9,466) Dividends paid (9,744) (7,706) Proceeds from borrowings 3,865 15,955 Proceeds from exercise of stock options 261 2,964 ------------- ------------ Net cash (used in) provided from financing activities (43,242) 1,747 ------------- ------------ Increase (decrease) in cash and cash equivalents 8,769 (10,384) ------------- ------------ CASH AND CASH EQUIVALENTS AT END OF PERIOD $43,091 $3,858 ------------- ------------ ------------- ------------ See accompanying notes to the consolidated financial statements.
8 ALBEMARLE CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ---------------------------------------------- (In Thousands Except Per-Share Amounts) (Unaudited) 1. In the opinion of management, the accompanying consolidated financial statements of Albemarle Corporation and Subsidiaries ("Albemarle" or "the Company") contain all adjustments necessary to present fairly, in all material respects, the Company's consolidated financial position as of June 30, 1998 and December 31, 1997, the consolidated results of operations and comprehensive income for the three- and six-month periods ended June 30, 1998 and June 30, 1997, and condensed consolidated cash flows for the six-month periods ended June 30, 1998 and June 30, 1997. All adjustments are of a normal and recurring nature. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's 1997 Annual Report & Form 10-K filed on March 20, 1998. The December 31, 1997 consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles. The results of operations for the three- and six-month periods ended June 30, 1998, are not necessarily indicative of the results to be expected for the full year. Certain amounts in the accompanying consolidated financial statements and notes thereto for the period ended June 30, 1998, have been compiled and included herein in connection with the adoption of Financial Accounting Standards Board ("FASB") Statement of Financial Accounting Standards ("SFAS") No. 130 "Reporting Comprehensive Income" effective January 1, 1998. 2. Long-term debt consists of the following:
June 30, December 31, 1998 1997 --------------- --------------- Variable-rate bank loans $ 66,100 $ 77,000 Foreign borrowings 16,185 13,645 Miscellaneous 1,122 1,148 --------------- --------------- Total 83,407 91,793 --------------- --------------- Less amounts due within one year 380 379 --------------- --------------- Long-term debt $ 83,027 $ 91,414 --------------- --------------- --------------- ---------------
9 ALBEMARLE CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ---------------------------------------------- (In Thousands Except Per-Share Amounts) (Unaudited) 3. Basic and diluted earnings per share for the three- and six-month periods ended June 30, 1998 and 1997, are calculated as follows:
Three Months Ended Six Months Ended June 30 June 30 --------------------- ---------------------- BASIC EARNINGS PER SHARE 1998 1997 1998 1997 ---------- ----------- --------- ------------ Numerator: Income available to stockholders, as reported $21,811 $20,363 $44,460 $40,540 ---------- ----------- --------- ------------ Denominator: Average number of shares of common stock outstanding 53,069 55,204 53,269 55,125 ---------- ----------- --------- ------------ Basic earnings per share $ .41 $ .37 $ .83 $ .74 ---------- ----------- --------- ------------ ---------- ----------- --------- ------------ DILUTED EARNINGS PER SHARE Numerator: Income available to stockholders, as reported $21,811 $20,363 $44,460 $40,540 ---------- ---------- ---------- ------------ Denominator: Average number of shares of common stock outstanding 53,069 55,204 53,269 55,125 Shares issuable upon exercise of stock options 612 395 562 442 ---------- ---------- ---------- ------------ Total shares 53,681 55,599 53,831 55,567 ---------- ---------- ---------- ------------ Diluted earnings per share $ .41 $ .37 $ .83 $ .73 ---------- ---------- ---------- ------------ ---------- ---------- ---------- ------------
10 ALBEMARLE CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ---------------------------------------------- (In Thousands Except Share Amounts) (Unaudited) 4. In June, 1997, the FASB issued SFAS No. 131, "Disclosures about Segments of an Enterprise and Related Information", which became effective for fiscal years beginning after December 31, 1997. SFAS No. 131 establishes standards for reporting information about operating segments, including related disclosures about products and services, geographic areas, and major customers. Interim reporting disclosures are not required in the first year of adoption and are therefore not provided. In June, 1998, the FASB issued SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities". SFAS No. 133 establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities. It requires that an entity recognize all derivatives as either assets or liabilities in the statement of financial position and measure those instruments at fair value. This Statement is effective for all fiscal quarters beginning after June 15, 1999, however, early adoption is permitted. The Company has not determined the impact SFAS Nos. 131 and 133 will have on the Company's financial statements; however, at the time of adoption, these Statements are not expected to have a material impact on the financial position or results of operations of the Company. 11 ITEM 2. Management's Discussion and Analysis of Results of Operations and Financial Condition -------------------------------------------------- The following is management's discussion and analysis of certain significant factors affecting Albemarle Corporation's ("Albemarle" or "the Company") results of operations during the periods included in the accompanying consolidated statements of income and changes in the Company's financial condition since December 31, 1997. Some of the information presented in the following discussion constitutes forward-looking comments within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from its expectations. Factors which could cause actual results to differ from expectations include, without limitation, the timing of orders received from customers, the gain or loss of significant customers, competition from other manufacturers, changes in the demand for the Company's products, increases in the cost of the product, changes in the market in general, fluctuations in foreign currencies and significant changes in new product introduction resulting in an increase in capital project requests and approvals leading to additional capital spending. Results of Operations - --------------------- Second Quarter 1998 Compared with Second Quarter 1997 - ------------------------------------------------------ NET SALES Net sales for the second quarter of 1998 amounted to $204.1 million, down approximately two percent from second quarter 1997 net sales of $207.7 million. The decrease in net sales was primarily due to lower shipments of flame retardants, zeolites, European potassium and chlorine chemicals, and bromine and derivatives, as well as the unfavorable effects of foreign exchange primarily in Japan, partly offset by increased shipments of polymer additives and intermediates, organometallics and catalysts, agrichemicals and ibuprofen. OPERATING COSTS AND EXPENSES Cost of goods sold for the second quarter of 1998 amounted to $137.9 million, which was down approximately one percent from the 1997 second quarter. The gross profit margin decreased to 32.4% in 1998 from 32.7% for the corresponding period in 1997. The slight decline in the gross margin from second quarter 1997 reflects the unfavorable effects of foreign exchange and lower shipments in 1998 versus 1997, offset in part by lower raw material costs and improved plant utilizations in certain product lines in the 1998 period. Selling, general and administrative expenses, combined with research and development expenses, decreased four percent in the second quarter of 1998 versus second quarter 1997. As a percentage of net sales, selling, general and administrative expenses, including research and development expenses, were 16.6% in 1998 versus 17.1% in the 1997 quarter. 12 OPERATING PROFIT Operating profit in the second quarter of 1998 was approximately equal to the corresponding period in 1997, while the operating profit margin increased slightly to 15.8% in 1998 from 15.6% in the 1997 period. INTEREST AND FINANCING EXPENSES Interest and financing expenses for the second quarter of 1998 were $.5 million higher compared to the corresponding second quarter of 1997 due to higher average outstanding debt. INCOME TAXES Income taxes for the second quarter of 1998 decreased approximately $2.0 million compared to the second quarter of 1997 as the effective income tax rate declined to 31.8% in the 1998 quarter from 37.5% in the 1997 quarter. The higher tax rate in second quarter 1997 does not reflect the benefit of tax planning strategies and improved earnings in certain foreign subsidiaries in the latter half of 1997 which resulted in a 1997 annual effective income tax rate of 33.8%. Results of Operations - --------------------- Six Months 1998 Compared with Six Months 1997 - --------------------------------------------- NET SALES Net sales for the first six months of 1998 amounted to $419.3 million, an increase of $13.2 million or three percent from the corresponding period of 1997. The higher net sales were primarily due to increased shipments of pharmachemicals, special intermediates and organometallics and catalysts, offset in part by decreased shipments of zeolites, European potassium and chlorine chemicals, and bromine and derivatives as well as the unfavorable effects of foreign exchange primarily in Japan. OPERATING COSTS AND EXPENSES Cost of goods sold increased five percent or $13.4 million for the first six months of 1998 from the corresponding period in 1997, with the result that the gross profit margin decreased to 32.0% in 1998 from 33.0% in the 1997 period. Selling, general and administrative expenses, combined with research and development expenses, decreased three percent for the first six months of 1998 versus the corresponding period in 1997. As a percentage of net sales, selling, general and administrative expenses, including research and development expenses, were 16.1% in 1998 versus 17.1% in the 1997 period. OPERATING PROFIT Operating profit in the first six months of 1998 increased approximately three percent from the corresponding period in 1997 due primarily to lower raw materials costs, improved plant utilizations in certain product lines and the Company's cost reduction program. The 1998 period also benefited from favorable product mix in agrichemicals, offset in part by the unfavorable effects of foreign exchange. 13 INTEREST AND FINANCING EXPENSES AND OTHER INCOME Interest and financing expenses for the first six months of 1998 were $1.3 million higher compared to the corresponding period in 1997 due to higher average outstanding debt. Other income increased $0.7 million due to higher interest income in the 1998 period. INCOME TAXES Income taxes in the first six months of 1998 decreased $2.8 million from the 1997 period, reflecting a lower effective income tax rate (32.5% in 1998 versus 37.4% in 1997). The higher tax rate in 1997 does not reflect the benefit of tax planning strategies and improved earnings in certain foreign subsidiaries in the latter half of 1997 which resulted in a 1997 annual effective income tax rate of 33.8%. Financial Condition and Liquidity - --------------------------------- Cash and cash equivalents at June 30, 1998, were $43.1 million, representing an increase of $8.8 million from $34.3 million at year-end 1997. Cash flows provided from operating activities for the first six months of 1998 together with borrowings of $3.9 million were used to cover purchases of common stock, capital expenditures, repayment of debt, payment of dividends with the balance added to cash and cash equivalents. The Company anticipates that cash provided from operations in the future will be sufficient to pay its operating expenses, satisfy debt-service obligations and make dividend payments. The change in the Company's accumulated other comprehensive income account from December 31, 1997, was due to foreign currency translation adjustments primarily related to the strengthening of the U.S. dollar, net of deferred income taxes. The noncurrent portion of the Company's long-term debt amounted to $83.0 million at June 30, 1998, compared to $91.4 million at the end of 1997. The Company's long-term debt, including the current portion, as a percentage of total capitalization amounted to 13.7% at June 30, 1998. The Company's capital expenditures in the first six months of 1998 were lower than the same period of 1997. For the year however, capital expenditures are forecasted to be about the same as the 1997 level. Capital spending will be financed primarily with cash flow from operations with any additional cash provided from additional debt. The amount and timing of any additional borrowing will depend on the Company's specific cash requirements. The Company is subject to federal, state, local and foreign requirements regulating the handling, manufacture and use of materials (some of which may be classified as hazardous or toxic by one or more regulatory agencies), the discharge of materials into the environment and the protection of the environment. To the best of the Company's knowledge, it currently is complying with and expects to continue to comply in all material respects with existing environmental laws, regulations, statutes and ordinances. Such 14 compliance with federal, state, local and foreign environmental protection laws has not in the past had, and is not expected to have in the future, a material effect on earnings or the competitive position of Albemarle. Among other environmental requirements, the Company is subject to the federal Superfund law, and similar state laws, under which the Company may be designated as a potentially responsible party and may be liable for a share of the costs associated with cleaning up various hazardous waste sites. Outlook - ------- The strengthening of the U.S. dollar against other currencies, particularly the Japanese yen, affected the Company's results unfavorably during the second quarter of 1998. The Company believes this trend likely will continue through the end of 1998. For the overall business, the Company expects revenue growth at only a single-digit percentage increase in 1998 compared to 1997 limited by the effects of foreign currency and Asian economic issues. Generally, strong demand in Europe and the United States for electronic products will continue to drive demand for the Company's Polymer Chemicals business unit products. In a few of these products, there is evidence that sales volumes have been unfavorably affected by diminished demand, and one non-proprietary flame retardant is unlikely to post volume increases in 1998 over 1997, partly as a result of the Asian economic situation. Organometallics and catalysts continue to perform well within Polymer Chemicals, with the Company's new metallocene-based catalysts and other co-catalysts beginning to be used in polymer production at key customers. Growth of this new product area will be dictated by the Company's success in supporting innovation by its customers and the pace of growth of the overall market for these improved polymers. The Company has conducted a plant startup in Polymer Chemicals for Ethacure 300 curative, used in cast polyurethane elastomers and other applications, and expects this product will begin a more active sales period following the withdrawal of the U.S. Environmental Protection Agency's Significant New Use Requirement, expected to take place in the third quarter of 1998. This will allow customers to use this product in some cases to replace another curative that is labeled as a suspected human carcinogen. Ibuprofen sales continue to climb on the strength of successful marketing efforts by our customers, including a number of additional formulations for use by children and other users. This should lead to improved overall performance in Pharmachemicals for the year 1998 over 1997. The Company expects that Naproxen, a pharmaceutical bulk active used in analgesic preparations, will continue to lag expectations for the year, and likely will not achieve the $10 million in annual sales earlier projected. Cost reductions are an important focus for the Company. The Company expects to achieve over $20 million of reductions in 1998 as a part of its $50 million manufacturing cost 15 reduction program. Cost reductions in general services and administration expenses are also a continuing focus for the Company. Part II - OTHER INFORMATION - --------------------------- Item 3. Legal Proceedings ----------------- The Company and its subsidiaries are involved from time to time in legal proceedings of types regarded as common in the Company's businesses, particularly products liability and toxic tort litigation and administrative or judicial proceedings seeking remediation under environmental laws, such as Superfund. While it is not possible to predict or determine the outcome of the proceedings presently pending, in the Company's opinion they should not result ultimately in liabilities that are likely to have a material adverse effect upon the results of operations or financial condition of the Company or its subsidiaries on a consolidated basis, but could have a material adverse effect in a particular reporting period. Item 6. Exhibits and Reports on Form 8-K -------------------------------- (a) Exhibits 27. Financial Data Schedule (b) No reports on Form 8-K have been filed during the quarter for which this report is filed. 16 SIGNATURES ----------- 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 thereunto duly authorized. ALBEMARLE CORPORATION ---------------------- (Registrant) Date: July 31, 1998 By: s/ Charles B. Walker --------------------- Charles B. Walker Vice Chairman and Chief Financial Officer EX-27 2
5 THIS SCHEDULE CONTAINS SUMMARY INFORMATION EXTRACTED FROM THE CONSOLIDATED BALANCE SHEET AND THE CONSOLIDATED STATEMENT OF INCOME FILED AS PART OF THE QUARTERLY REPORT ON FORM 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY SUCH QUARTERLY REPORT ON FORM 10-Q. 1,000 6-MOS DEC-31-1998 JUN-30-1998 $43,091 $0 $135,111 $2,612 $109,307 $303,124 $1,214,345 $718,417 $899,701 $119,643 $0 $0 $0 $528 $524,592 $899,701 $419,252 $419,252 $285,253 $352,860 $0 $0 $1,707 $65,867 $21,407 $44,460 $0 $0 $0 $44,460 $0.83 $0.83
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