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Albemarle (NYSE:ALB) +1.9% pre-market Wednesday after announcing a series of cost-cutting moves designed to improve cash flow in the near term and generate long-term financial flexibility in response to changing conditions in the lithium value chain.
The lithium producer said it is looking to reduce costs by ~$95M/year by cutting expenses and its workforce, and expects to realize more than $50M in cost savings this year.
Albemarle (ALB) said it expects 2024 capital spending to drop to $1.6B-$1.8B from $2.1B in 2023, reflecting “a re-phasing of larger projects in the near term to focus on those that are significantly progressed, near completion and in startup.”
The company said it will record a charge in Q1 related to the actions but did not specify the amount.
The proactive measures are intended to “re-phase growth investments and optimize cost structure to generate long-term financial flexibility and unlock more than $750M of cash flow over the near term,” the company said.
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