Albemarle Expects FY24 Capex of $1.6B-$1.8B, Vs $2.1B in FY23, To Cut Costs by $95M Annually Via Actions Related to Reduction in Headcount, Lower Contracted Services Spending
Portfolio Pulse from Benzinga Newsdesk
Albemarle Corporation (NYSE:ALB) plans to reduce its capital expenditures for FY24 to $1.6B-$1.8B from $2.1B in FY23. The company aims to cut costs by $95M annually through workforce reduction and decreased contracted services spending. These measures are in response to changing market conditions, especially in the lithium value chain. Albemarle will focus on near-completion projects and defer others, expecting to save over $50M in 2024. A charge will be recorded in Q1 2024 related to these actions.
January 17, 2024 | 11:50 am
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Albemarle Corporation plans to reduce FY24 capex and cut annual costs by $95M, focusing on near-term projects and deferring others. A charge will be recorded in Q1 2024 due to these actions.
The reduction in capex and cost-cutting measures, including headcount reduction, are typically seen as positive for profitability in the short term, which may lead to a positive market reaction. However, the charge to be recorded in Q1 2024 and the deferral of some projects could be seen as negative in the longer term, potentially offsetting some of the short-term positive impact.
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