ALBEMARLE CORP Form 8-K Current Report Filed 2012-11-15

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) November 15, 2012

ALBEMARLE CORPORATION

(Exact name of Registrant as specified in charter)


Virginia	001-12658	54-1692118
(State or other jurisdiction of incorporation)	(Commission file number)	(IRS employer identification no.)

451 Florida Street, Baton Rouge, Louisiana		70801
(Address of principal executive offices)		(Zip code)

Registrant’s telephone number, including area code

(225) 388-8011

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨	Soliciting material pursuant to Rule 14a- 12 under the Exchange Act (17 CFR 240.14a-12)

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 8 — Other Events

Item 8.01.

Other Events.

Albemarle Corporation (NYSE: ALB), a leader in the global specialty chemicals market, announced today that it plans to change its method of accounting for deferred actuarial gains and losses relating to its global pension and other postretirement benefit (OPEB) plans to a more preferable method in accordance with generally accepted accounting principles in the United States (GAAP). This new accounting method, referred to as mark-to-market (MTM) accounting, will be adopted in the fourth quarter 2012 and will be retrospectively applied to the Company’s financial results for all periods to be presented in its annual report on Form 10-K for the year ended December 31, 2012.

Albemarle has historically recognized actuarial gains and losses from its pension and OPEB plans in its consolidated balance sheets as Accumulated other comprehensive income (loss) within consolidated shareholders’ equity, with amortization of these gains and losses that exceed 10 percent of the greater of plan assets or projected benefit obligations recognized each quarter in its consolidated statements of income over the average future service period of active employees. Under MTM accounting, these gains and losses will now be recognized in the year in which they occur. Also, the gain/loss subject to amortization and expected return on assets components of Albemarle’s pension expense has historically been calculated using a five year smoothing of asset gains and losses referred to as the market-related value. Under MTM accounting, the market-related value of assets will equal the actual market value as of the date of measurement.

Under MTM accounting, the Company’s pre-tax pension and OPEB costs for the nine-month period ended September 30, 2012 would have been lower than previously reported amounts by approximately $45 million. These lower costs would have resulted in an increase in diluted earnings per share of approximately $0.32 for the nine months ended September 30, 2012. See the accompanying financial schedules for adjusted consolidated statements of income which show the effect of the accounting change for the nine months ended September 30, 2012 and the years ended December 31, 2011 and 2010, including selected quarterly information.

With the new method of accounting, the Company’s pension and OPEB costs will consist of three elements: (1) ongoing items comprised of service costs and amortization of prior service costs/benefits; (2) interest costs and expected return on plan assets; and (3) MTM gains and losses recognized in the fourth quarter of each year resulting from changes in actuarial assumptions and discount rates and the differences between actual and expected return on plan assets. Additionally, any interim remeasurements triggered by significant plan changes such as curtailments or settlements will be recognized as MTM adjustments in the quarter in which the event occurs.

As a result of the retrospective application of this change, Albemarle’s diluted earnings per share for the year ended December 31, 2011 decreased $0.49 from $4.77 to $4.28. Excluding net charges amounting to $85.8 million ($54.2 million after income taxes, or $0.59 per share) that related to pension and OPEB plan actuarial net losses as well as other non-operating pension and OPEB items comprised of interest costs and expected return on assets, diluted earnings per share for 2011 would have increased from $4.28 to $4.88. See the accompanying financial schedules for a reconciliation of the non-GAAP financial measure diluted earnings per share excluding special items to diluted earnings per share computed in accordance with GAAP for the nine months ended September 30, 2012 and the years ended December 31, 2011 and 2010, including selected quarterly information.

Albemarle’s operating segment results follow internal management reporting, which is used for making operating decisions and assessing performance. Historically, total pension and OPEB costs have been allocated to each of its reporting segments. In conjunction with the change to MTM, service costs (which represent the benefits earned by active employees during the period) and amortization of prior service costs/credits will continue to be

allocated to each segment. Interest costs, expected return on assets, and MTM actuarial gains and losses will be included in corporate unallocated results. Management believes this allocation will better reflect the operating results of each of its reporting segments. See the accompanying financial schedules for adjusted segment income which show the effect of the accounting change on reported segment income for the nine months ended September 30, 2012 and the years ended December 31, 2011 and 2010, including selected quarterly information.

Certain exhibits to this Form 8-K include presentations of diluted earnings per share which excludes special items, as well as segment income. These are financial measures that are not required by, nor presented in accordance with, GAAP, but are included to provide additional useful measurements to review our operations, provide transparency to investors and enable period-to-period comparability of financial performance.

Our presentations of diluted earnings per share which excludes special items should not be considered as alternatives to diluted earnings per share as determined in accordance with GAAP. Also, segment income should not be considered as an alternative to net income attributable to Albemarle Corporation as determined in accordance with GAAP. The Company has included in the press release certain reconciliation information for these measures to their most directly comparable financial measures calculated and reported in accordance with GAAP.

The text of the release announcing this change in accounting method is filed as Exhibit 99.7 to this Form 8-K, and is incorporated herein by reference.

Section 9 — Financial Statements and Exhibits

Item 9.01.

Financial Statements and Exhibits.

(d)

Exhibits.


99.1		Albemarle Corporation and Subsidiaries Consolidated Statements of Income – As Previously Reported and As Adjusted

99.2		Albemarle Corporation and Subsidiaries Consolidated Statements of Income – Quarterly – As Previously Reported and As Adjusted

99.3		Albemarle Corporation and Subsidiaries Segment Income Reconciliation – As Previously Reported and As Adjusted

99.4		Albemarle Corporation and Subsidiaries Segment Income Reconciliation – Quarterly – As Previously Reported and As Adjusted

99.5		Albemarle Corporation and Subsidiaries Earnings Per Diluted Share Excluding Special Items – As Previously Reported and As Adjusted

99.6		Albemarle Corporation and Subsidiaries Earnings Per Diluted Share Excluding Special Items – Quarterly – As Previously Reported and As Adjusted

99.7		Press release, dated November 15, 2012, issued by the Company.

SIGNATURE

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 hereunto duly authorized.

Date: November 15, 2012


ALBEMARLE CORPORATION

By:		/s/ Karen G. Narwold
		Karen G. Narwold
		Senior Vice President, General Counsel and Corporate Secretary

EXHIBIT INDEX


Exhibit Number		Exhibit

99.1		Albemarle Corporation and Subsidiaries Consolidated Statements of Income – As Previously Reported and As Adjusted

99.2		Albemarle Corporation and Subsidiaries Consolidated Statements of Income – Quarterly – As Previously Reported and As Adjusted

99.3		Albemarle Corporation and Subsidiaries Segment Income Reconciliation – As Previously Reported and As Adjusted

99.4		Albemarle Corporation and Subsidiaries Segment Income Reconciliation – Quarterly – As Previously Reported and As Adjusted

99.5		Albemarle Corporation and Subsidiaries Earnings Per Diluted Share Excluding Special Items – As Previously Reported and As Adjusted

99.6		Albemarle Corporation and Subsidiaries Earnings Per Diluted Share Excluding Special Items – Quarterly – As Previously Reported and As Adjusted

99.7		Press release, dated November 15, 2012, issued by the Company.

Exhibit 99.1

Albemarle Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, Except Per Share Amounts; Unaudited)


Nine Months Ended September 30, 2012	As Previously Reported			Effect of Accounting Change			As Adjusted

Net sales	$	2,057,824		$	—		$	2,057,824
Cost of goods sold		1,352,495			(12,689	)		1,339,806

Gross profit		705,329			12,689			718,018
Selling, general and administrative expenses		215,298			(26,155	)		189,143
Research and development expenses		59,791			—			59,791
Restructuring and other charges		101,211			(6,508	)		94,703

Operating profit		329,029			45,352			374,381
Interest and financing expenses		(25,134	)		—			(25,134	)
Other income, net		1,564			—			1,564

Income before income taxes and equity in net income of unconsolidated investments		305,459			45,352			350,811
Income tax expense		76,804			16,578			93,382

Income before equity in net income of unconsolidated investments		228,655			28,774			257,429
Equity in net income of unconsolidated investments (net of tax)		29,233			—			29,233

Net income	$	257,888		$	28,774		$	286,662
Net income attributable to noncontrolling interests		(12,852	)		—			(12,852	)

Net income attributable to Albemarle Corporation	$	245,036		$	28,774		$	273,810

Basic earnings per share	$	2.75		$	0.32		$	3.07

Diluted earnings per share	$	2.72		$	0.32		$	3.04

Weighted-average common shares outstanding – basic		89,246			—			89,246

Weighted-average common shares outstanding – diluted		89,959			—			89,959

Cash dividends declared per share of common stock	$	0.60		$	—		$	0.60

Exhibit 99.1

Albemarle Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, Except Per Share Amounts; Unaudited)


Year Ended December 31, 2011	As Previously Reported			Effect of Accounting Change			As Adjusted

Net sales	$	2,869,005		$	—		$	2,869,005
Cost of goods sold		1,891,946			22,112			1,914,058

Gross profit		977,059			(22,112	)		954,947
Selling, general and administrative expenses		312,136			47,934			360,070
Research and development expenses		77,083			—			77,083

Operating profit		587,840			(70,046	)		517,794
Interest and financing expenses		(37,574	)		—			(37,574	)
Other income, net		357			—			357

Income before income taxes and equity in net income of unconsolidated investments		550,623			(70,046	)		480,577
Income tax expense		130,014			(25,880	)		104,134

Income before equity in net income of unconsolidated investments		420,609			(44,166	)		376,443
Equity in net income of unconsolidated investments (net of tax)		43,754			—			43,754

Net income	$	464,363		$	(44,166	)	$	420,197
Net income attributable to noncontrolling interests		(28,083	)		—			(28,083	)

Net income attributable to Albemarle Corporation	$	436,280		$	(44,166	)	$	392,114

Basic earnings per share	$	4.82		$	(0.49	)	$	4.33

Diluted earnings per share	$	4.77		$	(0.49	)	$	4.28

Weighted-average common shares outstanding – basic		90,522			—			90,522

Weighted-average common shares outstanding – diluted		91,522			—			91,522

Cash dividends declared per share of common stock	$	0.67		$	—		$	0.67

Exhibit 99.1

Albemarle Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, Except Per Share Amounts; Unaudited)


Year Ended December 31, 2010	As Previously Reported			Effect of Accounting Change			As Adjusted

Net sales	$	2,362,764		$	—		$	2,362,764
Cost of goods sold		1,616,842			4,012			1,620,854

Gross profit		745,922			(4,012	)		741,910
Selling, general and administrative expenses		265,722			8,893			274,615
Research and development expenses		58,394			—			58,394
Restructuring and other charges		6,958			—			6,958

Operating profit		414,848			(12,905	)		401,943
Interest and financing expenses		(25,533	)		—			(25,533	)
Other income, net		2,788			—			2,788

Income before income taxes and equity in net income of unconsolidated investments		392,103			(12,905	)		379,198
Income tax expense		92,719			(4,963	)		87,756

Income before equity in net income of unconsolidated investments		299,384			(7,942	)		291,442
Equity in net income of unconsolidated investments (net of tax)		37,975			—			37,975

Net income	$	337,359		$	(7,942	)	$	329,417
Net income attributable to noncontrolling interests		(13,639	)		—			(13,639	)

Net income attributable to Albemarle Corporation	$	323,720		$	(7,942	)	$	315,778

Basic earnings per share	$	3.54		$	(0.08	)	$	3.46

Diluted earnings per share	$	3.51		$	(0.08	)	$	3.43

Weighted-average common shares outstanding – basic		91,393			—			91,393

Weighted-average common shares outstanding – diluted		92,184			—			92,184

Cash dividends declared per share of common stock	$	0.56		$	—		$	0.56

Exhibit 99.2

Albemarle Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME – QUARTERLY – AS PREVIOUSLY REPORTED

(In Thousands, Except Per Share Amounts; Unaudited)


	2012									2011
	1st Quarter			2nd Quarter			3rd Quarter			1st Quarter			2nd Quarter			3rd Quarter			4th Quarter

Net sales	$	711,704		$	684,894		$	661,226		$	696,530		$	742,108		$	722,977		$	707,390
Cost of goods sold		463,817			442,209			446,469			463,514			490,159			464,965			473,308

Gross profit		247,887			242,685			214,757			233,016			251,949			258,012			234,082
Selling, general and administrative expenses		80,692			74,624			59,982			73,039			82,907			77,169			79,021
Research and development expenses		19,049			20,911			19,831			17,615			19,947			20,534			18,987
Restructuring and other charges		—			94,703			6,508			—			—			—			—

Operating profit		148,146			52,447			128,436			142,362			149,095			160,309			136,074
Interest and financing expenses		(8,734	)		(8,486	)		(7,914	)		(9,592	)		(9,274	)		(9,710	)		(8,998	)
Other income (expenses), net		(118	)		(688	)		2,370			338			(760	)		956			(177	)

Income before income taxes and equity in net income of unconsolidated investments		139,294			43,273			122,892			133,108			139,061			151,555			126,899
Income tax expense		35,466			14,747			26,591			32,172			30,154			38,097			29,591

Income before equity in net income of unconsolidated investments		103,828			28,526			96,301			100,936			108,907			113,458			97,308
Equity in net income of unconsolidated investments (net of tax)		8,586			12,712			7,935			12,831			14,787			9,500			6,636

Net income	$	112,414		$	41,238		$	104,236		$	113,767		$	123,694		$	122,958		$	103,944
Net income attributable to noncontrolling interests		(4,371	)		(3,506	)		(4,975	)		(7,187	)		(9,535	)		(6,860	)		(4,501	)

Net income attributable to Albemarle Corporation	$	108,043		$	37,732		$	99,261		$	106,580		$	114,159		$	116,098		$	99,443

Basic earnings per share	$	1.21		$	0.42		$	1.11		$	1.16		$	1.24		$	1.29		$	1.12

Diluted earnings per share	$	1.20		$	0.42		$	1.10		$	1.15		$	1.23		$	1.28		$	1.11

Weighted-average common shares outstanding – basic		88,997			89,414			89,327			91,633			91,713			89,935			88,805

Weighted-average common shares outstanding – diluted		89,947			90,051			89,879			92,517			92,795			90,958			89,819

Cash dividends declared per share of common stock	$	0.20		$	0.20		$	0.20		$	0.165		$	0.165		$	0.165		$	0.175

Exhibit 99.2

Albemarle Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME – QUARTERLY – AS ADJUSTED

(In Thousands, Except Per Share Amounts; Unaudited)


	2012									2011
	1st Quarter			2nd Quarter			3rd Quarter			1st Quarter			2nd Quarter			3rd Quarter			4th Quarter

Net sales	$	711,704		$	684,894		$	661,226		$	696,530		$	742,108		$	722,977		$	707,390
Cost of goods sold		460,724			435,606			443,476			461,172			489,731			462,575			500,580

Gross profit		250,980			249,288			217,750			235,358			252,377			260,402			206,810
Selling, general and administrative expenses		74,004			61,735			53,404			68,343			82,307			72,394			137,026
Research and development expenses		19,049			20,911			19,831			17,615			19,947			20,534			18,987
Restructuring and other charges		—			94,703			—			—			—			—			—

Operating profit		157,927			71,939			144,515			149,400			150,123			167,474			50,797
Interest and financing expenses		(8,734	)		(8,486	)		(7,914	)		(9,592	)		(9,274	)		(9,710	)		(8,998	)
Other income (expenses), net		(118	)		(688	)		2,370			338			(760	)		956			(177	)

Income before income taxes and equity in net income of unconsolidated investments		149,075			62,765			138,971			140,146			140,089			158,720			41,622
Income tax expense (benefit)		39,028			21,882			32,472			34,729			30,498			40,698			(1,791	)

Income before equity in net income of unconsolidated investments		110,047			40,883			106,499			105,417			109,591			118,022			43,413
Equity in net income of unconsolidated investments (net of tax)		8,586			12,712			7,935			12,831			14,787			9,500			6,636

Net income	$	118,633		$	53,595		$	114,434		$	118,248		$	124,378		$	127,522		$	50,049
Net income attributable to noncontrolling interests		(4,371	)		(3,506	)		(4,975	)		(7,187	)		(9,535	)		(6,860	)		(4,501	)

Net income attributable to Albemarle Corporation	$	114,262		$	50,089		$	109,459		$	111,061		$	114,843		$	120,662		$	45,548

Basic earnings per share	$	1.28		$	0.56		$	1.23		$	1.21		$	1.25		$	1.34		$	0.51

Diluted earnings per share	$	1.27		$	0.56		$	1.22		$	1.20		$	1.24		$	1.33		$	0.51

Weighted-average common shares outstanding – basic		88,997			89,414			89,327			91,633			91,713			89,935			88,805

Weighted-average common shares outstanding – diluted		89,947			90,051			89,879			92,517			92,795			90,958			89,819

Cash dividends declared per share of common stock	$	0.20		$	0.20		$	0.20		$	0.165		$	0.165		$	0.165		$	0.175

Additional Information

It should be noted that Net income attributable to Albemarle Corporation (“earnings”) per diluted share which excludes special items, as well as segment income, are financial measures that are not required by, or presented in accordance with, GAAP. These measures are presented below to provide additional useful measurements to review our operations, provide transparency to investors and enable period-to-period comparability of financial performance. Also included in the presentations below are reconciliations of these non-GAAP measures to their most directly comparable financial measures calculated and reported in accordance with GAAP.

Exhibit 99.3

Albemarle Corporation and Subsidiaries

SEGMENT INCOME RECONCILIATION

(In Thousands; Unaudited)


Nine Months Ended September 30, 2012	As Previously Reported			Effect of Accounting Change			As Adjusted

Segment income:
Polymer Solutions	$	161,189		$	5,161		$	166,350
Catalysts		209,932			3,448			213,380
Fine Chemistry		123,966			6,860			130,826

Total segment income		495,087			15,469			510,556

Corporate & other		(48,466	)		23,375			(25,091	)
Restructuring and other charges		(101,211	)		6,508			(94,703	)
Interest and financing expenses		(25,134	)		—			(25,134	)
Other income, net		1,564			—			1,564
Income tax expense		(76,804	)		(16,578	)		(93,382	)

Net income attributable to Albemarle Corporation	$	245,036		$	28,774		$	273,810


Year Ended December 31, 2011	As Previously Reported			Effect of Accounting Change			As Adjusted

Segment income:
Polymer Solutions	$	237,811		$	3,478		$	241,289
Catalysts		323,601			2,723			326,324
Fine Chemistry		139,578			4,842			144,420

Total segment income		700,990			11,043			712,033

Corporate & other		(97,479	)		(81,089	)		(178,568	)
Interest and financing expenses		(37,574	)		—			(37,574	)
Other income, net		357			—			357
Income tax expense		(130,014	)		25,880			(104,134	)

Net income attributable to Albemarle Corporation	$	436,280		$	(44,166	)	$	392,114


Year Ended December 31, 2010	As Previously Reported			Effect of Accounting Change			As Adjusted

Segment income:
Polymer Solutions	$	198,261		$	2,300		$	200,561
Catalysts		248,773			1,670			250,443
Fine Chemistry		72,148			4,074			76,222

Total segment income		519,182			8,044			527,226

Corporate & other		(73,040	)		(20,949	)		(93,989	)
Restructuring and other charges		(6,958	)		—			(6,958	)
Interest and financing expenses		(25,533	)		—			(25,533	)
Other income, net		2,788			—			2,788
Income tax expense		(92,719	)		4,963			(87,756	)

Net income attributable to Albemarle Corporation	$	323,720		$	(7,942	)	$	315,778

Exhibit 99.4

Albemarle Corporation and Subsidiaries

SEGMENT INCOME RECONCILIATION – QUARTERLY – AS PREVIOUSLY REPORTED

(In Thousands; Unaudited)


	2012									2011
	1st Quarter			2nd Quarter			3rd Quarter			1st Quarter			2nd Quarter			3rd Quarter			4th Quarter

Segment income:
Polymer Solutions	$	53,555		$	64,073		$	43,561		$	69,474		$	77,167		$	54,555		$	36,615
Catalysts		82,156			67,103			60,673			72,592			65,603			101,852			83,554
Fine Chemistry		38,552			43,751			41,663			29,534			37,410			30,004			42,630

Total segment income		174,263			174,927			145,897			171,600			180,180			186,411			162,799

Corporate & other		(21,902	)		(18,571	)		(7,993	)		(23,594	)		(25,833	)		(23,462	)		(24,590	)
Restructuring and other charges		—			(94,703	)		(6,508	)		—			—			—			—
Interest and financing expenses		(8,734	)		(8,486	)		(7,914	)		(9,592	)		(9,274	)		(9,710	)		(8,998	)
Other income (expenses), net		(118	)		(688	)		2,370			338			(760	)		956			(177	)
Income tax expense		(35,466	)		(14,747	)		(26,591	)		(32,172	)		(30,154	)		(38,097	)		(29,591	)

Net income attributable to Albemarle Corporation	$	108,043		$	37,732		$	99,261		$	106,580		$	114,159		$	116,098		$	99,443

SEGMENT INCOME RECONCILIATION – QUARTERLY – AS ADJUSTED

(In Thousands; Unaudited)


	2012									2011
	1st Quarter			2nd Quarter			3rd Quarter			1st Quarter			2nd Quarter			3rd Quarter			4th Quarter

Segment income:
Polymer Solutions	$	55,390		$	65,669		$	45,291		$	70,304		$	78,092		$	55,436		$	37,457
Catalysts		83,382			68,169			61,829			73,242			66,327			102,542			84,213
Fine Chemistry		40,991			45,872			43,963			30,689			38,697			31,231			43,803

Total segment income		179,763			179,710			151,083			174,235			183,116			189,209			165,473

Corporate & other		(17,621	)		(3,862	)		(3,608	)		(19,191	)		(27,741	)		(19,095	)		(112,541	)
Restructuring and other charges		—			(94,703	)		—			—			—			—			—
Interest and financing expenses		(8,734	)		(8,486	)		(7,914	)		(9,592	)		(9,274	)		(9,710	)		(8,998	)
Other income (expenses), net		(118	)		(688	)		2,370			338			(760	)		956			(177	)
Income tax (expense) benefit		(39,028	)		(21,882	)		(32,472	)		(34,729	)		(30,498	)		(40,698	)		1,791

Net income attributable to Albemarle Corporation	$	114,262		$	50,089		$	109,459		$	111,061		$	114,843		$	120,662		$	45,548

Exhibit 99.5

Albemarle Corporation and Subsidiaries

EARNINGS PER DILUTED SHARE EXCLUDING SPECIAL ITEMS

(In Thousands, Except Per Share Amounts; Unaudited)


Nine Months Ended September 30, 2012	As Previously Reported		Effect of Accounting Change			As Adjusted

Net income attributable to Albemarle Corporation	$	245,036	$	28,774		$	273,810
Diluted earnings per share		2.72		0.32			3.04
Special items per share
Non-operating pension and OPEB adjustments ^(a)		—		(0.13	)		(0.13	)
Restructuring and other charges ^(b)		0.82		(0.05	)		0.77

Diluted earnings per share excluding special items	$	3.54	$	0.14		$	3.68

(a)

Non-operating pension and OPEB adjustments for the nine months ended September 30, 2012 included net benefits amounting to $18.9 million ($11.9 million after income taxes, or $0.13 per share) that related to pension and OPEB plan actuarial net gains as well as interest costs and expected return on assets.

(b)

The nine months ended September 30, 2012 included charges amounting to $94.7 million ($73.6 million after income taxes, or $0.82 per share) in connection with our exit of the phosphorus flame retardants business. The nine months ended September 30, 2012 also includes $4.1 million, or $0.05 per share, in after-tax charges ($6.5 million before tax) related to a supplemental executive retirement plan (SERP) settlement, and $4.5 million, or $0.05 per share, of net tax benefits related principally to the release of various tax reserves.


Year Ended December 31, 2011	As Previously Reported		Effect of Accounting Change			As Adjusted

Net income attributable to Albemarle Corporation	$	436,280	$	(44,166	)	$	392,114
Diluted earnings per share		4.77		(0.49	)		4.28
Special items per share
Non-operating pension and OPEB adjustments ^(a)		—		0.59			0.59

Diluted earnings per share excluding special items ^(b)	$	4.77	$	0.11		$	4.88

(a)	Non-operating pension and OPEB adjustments for the year ended December 31, 2011 included net charges amounting to $85.8 million ($54.2 million after income taxes, or $0.59 per share) that related to pension and OPEB plan actuarial net losses as well as interest costs and expected return on assets.

(b)	Totals may not add due to rounding.


Year Ended December 31, 2010	As Previously Reported		Effect of Accounting Change			As Adjusted

Net income attributable to Albemarle Corporation	$	323,720	$	(7,942	)	$	315,778
Diluted earnings per share		3.51		(0.08	)		3.43
Special items per share
Non-operating pension and OPEB adjustments ^(a)		—		0.17			0.17
Restructuring and other charges ^(b)		0.05		—			0.05

Diluted earnings per share excluding special items	$	3.56	$	0.09		$	3.65

(a)	Non-operating pension and OPEB adjustments for the year ended December 31, 2010 included net charges amounting to $24.9 million ($15.8 million after income taxes, or $0.17 per share) that related to pension and OPEB plan actuarial net losses as well as interest costs and expected return on assets.

(b)	The year ended December 31, 2010 included charges amounting to $7.0 million ($4.6 million after income taxes, or $0.05 per share) that related principally to reductions in force at our Bergheim, Germany site.

Exhibit 99.6

Albemarle Corporation and Subsidiaries

EARNINGS PER DILUTED SHARE EXCLUDING SPECIAL ITEMS – QUARTERLY – AS PREVIOUSLY REPORTED

(In Thousands, Except Per Share Amounts; Unaudited)


	2012							2011
	1st Quarter		2nd Quarter		3rd Quarter			1st Quarter		2nd Quarter		3rd Quarter		4th Quarter

Net income attributable to Albemarle Corporation	$	108,043	$	37,732	$	99,261		$	106,580	$	114,159	$	116,098	$	99,443
Diluted earnings per share		1.20		0.42		1.10			1.15		1.23		1.28		1.11
Special items per share
Restructuring and other charges ^(a)		—		0.82		0.05			—		—		—		—
Discrete net tax benefits ^(b)		—		—		(0.05	)		—		—		—		—

Diluted earnings per share excluding special items	$	1.20	$	1.24	$	1.10		$	1.15	$	1.23	$	1.28	$	1.11

(a)	The quarter ended June 30, 2012 included charges amounting to $94.7 million ($73.6 million after income taxes, or $0.82 per share) in connection with our exit of the phosphorus flame retardants business.

The quarter ended September 30, 2012 included $4.1 million, or $0.05 per share, in after-tax charges ($6.5 million before tax) related to a SERP settlement.

(b)	The quarter ended September 30, 2012 included $4.5 million, or $0.05 per share, of net tax benefits related principally to the release of various tax reserves.

EARNINGS PER DILUTED SHARE EXCLUDING SPECIAL ITEMS – QUARTERLY – AS ADJUSTED

(In Thousands, Except Per Share Amounts; Unaudited)


	2012									2011
	1st Quarter			2nd Quarter			3rd Quarter			1st Quarter			2nd Quarter		3rd Quarter			4th Quarter

Net income attributable to Albemarle Corporation	$	114,262		$	50,089		$	109,459		$	111,061		$	114,843	$	120,662		$	45,548
Diluted earnings per share		1.27			0.56			1.22			1.20			1.24		1.33			0.51
Special items per share
Non-operating pension and OPEB adjustments ^(a)		(0.02	)		(0.09	)		(0.02	)		(0.02	)		0.02		(0.02	)		0.63
Restructuring and other charges ^(b)		—			0.82			—			—			—		—			—
Discrete net tax benefits ^(c)		—			—			(0.05	)		—			—		—			—

Diluted earnings per share excluding special items ^(d)	$	1.25		$	1.28		$	1.15		$	1.18		$	1.26	$	1.30		$	1.13

(a)	Non-operating pension and OPEB adjustments for the quarter ended March 31, 2012 included net benefits amounting to $2.7 million ($1.7 million after income taxes, or $0.02 per share) that related to interest costs and expected return on assets.

Non-operating pension and OPEB adjustments for the quarter ended June 30, 2012 included net benefits amounting to $13.3 million ($8.4 million after income taxes, or $0.09 per share) that related to pension and OPEB plan actuarial net gains as well as interest costs and expected return on assets.

Non-operating pension and OPEB adjustments for the quarter ended September 30, 2012 included net benefits amounting to $2.9 million ($1.8 million after income taxes, or $0.02 per share) that related to interest costs and expected return on assets.

Non-operating pension and OPEB adjustments for the quarter ended March 31, 2011 included net benefits amounting to $3.3 million ($2.1 million after income taxes, or $0.02 per share) that related to interest costs and expected return on assets.

Non-operating pension and OPEB adjustments for the quarter ended June 30, 2011 included net charges amounting to $3.2 million ($2.0 million after income taxes, or $0.02 per share) that related to pension and OPEB plan actuarial net losses as well as interest costs and expected return on assets.

Exhibit 99.6

Albemarle Corporation and Subsidiaries

Non-operating pension and OPEB adjustments for the quarter ended September 30, 2011 included net benefits amounting to $3.2 million ($2.0 million after income taxes, or $0.02 per share) that related to interest costs and expected return on assets.

Non-operating pension and OPEB adjustments for the quarter ended December 31, 2011 included net charges amounting to $89.1 million ($56.3 million after income taxes, or $0.63 per share) that related to pension and OPEB plan actuarial net losses as well as interest costs and expected return on assets.

(b)	The quarter ended June 30, 2012 included charges amounting to $94.7 million ($73.6 million after income taxes, or $0.82 per share) in connection with our exit of the phosphorus flame retardants business.

(c)	The quarter ended September 30, 2012 included $4.5 million, or $0.05 per share, of net tax benefits related principally to the release of various tax reserves.

(d)	Totals may not add due to rounding.

Exhibit 99.7

LOGO

Albemarle announces change in pension accounting

BATON ROUGE, LA, November 15, 2012 – Albemarle Corporation (NYSE: ALB), a leader in the global specialty chemicals market, announced today that it plans to change its method of accounting for deferred actuarial gains and losses relating to its global pension and other postretirement benefit (OPEB) plans to a more preferable method in accordance with generally accepted accounting principles in the United States (GAAP). This new accounting method, referred to as mark-to-market (MTM) accounting, will be adopted in the fourth quarter 2012 and will be retrospectively applied to the Company’s financial results for all periods to be presented in its annual report on Form 10-K for the year ended December 31, 2012.

“We believe this accounting change will provide greater transparency to our operating results that will allow investors to more clearly evaluate the Company’s underlying operating performance by recognizing actuarial gains and losses from our pension and OPEB plans in the year in which the gains and losses occur, rather than amortizing them over future periods,” said Scott Tozier, Albemarle’s Senior Vice President and Chief Financial Officer. “This change will also improve transparency by recognizing the effects of economic and interest rate trends on pension and OPEB plan investments and assumptions in the year changes in these trends occur. This methodology is preferable under GAAP since it aligns more closely with fair value principles. Also, this accounting change has no impact on benefits received by participants of these plans or on the Company’s related funding obligations.”

Under MTM accounting, the Company’s pre-tax pension and OPEB costs for the nine-month period ended September 30, 2012 would have been lower than previously reported by approximately $45 million. These lower costs would have resulted in an increase in diluted earnings per share of approximately $0.32 for the nine months ended September 30, 2012.

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. Albemarle 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 and 2011. Albemarle employs approximately 4,000 people and serves customers in approximately 100 countries. Albemarle regularly posts information to www.albemarle.com, including notification of events, news, financial performance, investor presentations and webcasts, Regulation G reconciliations, SEC filings and other information regarding the Company, its businesses and markets served.

Forward-Looking Statements

Some of the information presented in this press release, including, without limitation, statements with respect to product development, changes in productivity, market trends, price and mix changes, expected growth, outlook and all other information relating to matters that are not historical facts may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ materially. Factors that could cause actual results to differ from expectations include, without limitation: changes in economic and business conditions; changes in financial and operating performance of our major customers and industries and markets served by us; the timing of orders received from customers; the gain or loss of significant customers; competition from other manufacturers; changes in the demand for our products; limitations or prohibitions on the manufacture and sale of our products; availability of raw materials; changes in the


		Exhibit 99.7

cost of raw materials and energy and in our ability to pass through increases; acquisitions and divestitures, and changes in performance of acquired companies; fluctuations in foreign currencies; changes in laws and government regulation impacting our operations or our products; the occurrence of claims or litigation; the occurrence of natural disasters; the inability to maintain current levels of product or premises liability insurance or the denial of such coverage; political unrest, including terrorism or hostilities; political instability affecting our manufacturing operations or joint ventures; changes in accounting standards; the inability to achieve results from our global manufacturing cost reduction initiatives as well as our ongoing continuous improvement and rationalization programs; changes in the jurisdictional mix of our earnings; changes in monetary policies or inflation or interest rates, which may impact our ability to raise capital or increase our cost of funds, the performance of our pension fund investments and our pension expense and funding obligations; volatility and substantial uncertainties in the debt and equity markets; technology or intellectual property infringement and other risks; decisions we may make in the future; and the other factors detailed from time to time in the reports we file with the SEC, including those described under “Risk Factors” in our Annual Report on Form 10-K and our 2012 Quarterly Reports on Form 10-Q.

Media Contact: Ashley Mendoza, (225) 388-7137, Ashley.Mendoza@albemarle.com

Investor Relations Contact: Lorin Crenshaw, (225) 388-7322, Lorin.Crenshaw@albemarle.com