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Albemarle (ALB) Announces Intent To Exit Phosphorous Business

 May 17, 2012 08:19 AM

Albemarle Corp. (NYSE:ALB) revealed its intent to exit its existing phosphorous flame retardants business in a move to restructure its business portfolio and address underperforming assets.

The Baton Rouge, Louisiana-based-company sees a one-time accounting charge in the range of $80 million to $95 million in the second quarter 2012.

"It has become clear that our current phosphorus business and product lines are not strategically aligned with Vision 2015's growth plans," commented Luke Kissam, Albemarle's Chief Executive Officer.

Albemarle expects the cash outlay related to the above proposals between $5 million and $15 million with payback in nearly one year.

[Related -Albemarle (ALB) Downgraded To 'Hold' By Deutsche Bank On Lack Of Near-Term Catalysts]

The company expects earnings per share to improve by $0.10 to $0.15 per share in 2013 once these actions are completed.

The company is engaged in the development of specialty chemicals for consumer electronics, food-safety, pharmaceuticals, petroleum refining, packaging, construction, utilities, automotive, among others.

Albemarle plans to exit the business and cease operations at the Avonmouth, UK and the Nanjing, China site.

ALB shares closed Wednesday's regular trading session at $62.81.

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