Albemarle CorporationALB

Morningstar Rating

Stock Research and Analysis

by Joung Park

Albemarle has sought to differentiate itself within the ultracompetitive chemical industry by focusing on attractive niches, such as refinery catalysts and pharmaceuticals, as well as by exploiting its cost advantage in bromine-based chemicals. While Read more

Bulls Say

Albemarle is one of the three major players in the refinery catalyst sector. The oligopolistic industry structure leads to a favorable pricing environment for the firm.

Weak drilling activity has sapped demand for Albemarle's drilling fluids, a key product for the firm's fine chemicals segment.

Albemarle entered an agreement with Anthera Pharmaceuticals in 2008 to provide the active ingredients for Anthera's cholesterol-reducing drug, which is currently in Phase II clinical trials. Read more

Bears Say

Demand for Albemarle's sizable portfolio of bromine-based products, such as flame retardants and antioxidants, are tied to the highly cyclical automotive, housing, and consumer electronics markets.

Albemarle assumed a load of debt to finance its recent acquisitions. Its net debt/equity ratio was greater than 60% in 2008, versus 36% in 2003.

Albemarle is vulnerable to spikes in raw material prices, especially for bromine, aluminum, and natural gas. Read more

Strategy

Albemarle is seeking to enhance its profitability by moving toward specialized, higher-margin niches within the chemical space, such as catalysts and pharmaceutical ingredients. To achieve this goal, Read more

Management

Albemarle has been capably led by CEO Mark Rohr, who arrived at the firm in 2000 as COO and was appointed to his current position in 2002. Prior to working at Albemarle, Rohr served in executive positions at Occidental Chemicals as well as Celanese Read more

Profile

Albemarle is the leading manufacturer of bromine-based chemical products, such as flame retardants and drilling fluid. The company is also one of the largest producers of Read more

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