What's Going On With Albemarle Stock Today?

Albemarle Corp ALB shares are trading lower Wednesday after the company outlined actions to reduce costs and preserve growth.

What Happened: Albemarle said a series of proactive measures are underway to re-phase organic growth investments and optimize its cost structure. The actions are in response to changing end-market conditions in the lithium value chain.

Albemarle said it plans to reduce costs by approximately $95 million a year by lowering its headcount and cutting spending on contracted services. The company expects to realize more than $50 million in cost savings this year.

Albemarle also said it expects 2024 capital expenditures to be between $1.6 billion and $1.8 billion, which would be down from approximately $2.1 billion in 2023. The lower spending is related to the re-phasing of some of its larger projects in the near term.

“The actions we are taking allow us to advance near-term growth and preserve future opportunities as we navigate the dynamics of our key end-markets,” said Kent Masters, CEO of Albemarle.

“The long-term fundamentals for our business are strong and we remain committed to operating in a safe and sustainable manner.”

Albemarle noted that it expects to record a charge in the first quarter related to these actions. The company is set to report its full-year 2023 results on Feb. 15.

See Also: Warren Buffett-Backed BYD In Talks With Brazilian Lithium Producer Sigma Amid Global EV Surge

ALB Price Action: Albemarle shares were down 2.15% at $123.24 at the time of publication, according to Benzinga Pro.

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