Albemarle Corporation (NYSE:ALB)

Much uncertainty still exists as to the duration of the current global economic downturn and the impacts on the end-markets serviced by our products. However, we are seeing indications of better customer order patterns across our businesses and the benefits of our cost reduction programs. We believe that these dynamics will favorably position us to cope with the continuing challenges in the global marketplace and emerge even stronger in the markets we serve.

Source: PR Newswire (July 22, 2009)

Guidance Update: (Non-China)

We expect the recent downturn in consumer electronics, together with already lackluster demand in the automotive and construction sectors, to impact volumes and profitability of our Polymer Additives business through 2009. Although the Company is taking steps to restructure our operations and cut costs, we expect 2009 will be challenging until consumer demand returns and global markets rebound.

The Fine Chemicals business has been relatively resilient and generated top-line growth in the fourth quarter of 2008, as the Fine Chemistry Services unit has a high percentage of its customers in the pharmaceutical and agricultural sectors, which have been less impacted to date by the current global economic conditions. The Company believes new products in Performance Chemicals and a full year of business from our Sorbent mercury removal technology should also help Fine Chemicals offset reduced volumes of bromine supplied to our flame retardant business. In 2009, we anticipate increased volumes for HPC and polyolefin catalysts, as well as a solid performance from fluid cracking catalysts (FCC). During the year we should also see increased contribution from our alternative fuels technology business.

The Company is targeting to achieve $30 million in annualized savings in 2009 by accelerating cost reduction programs and resizing its business footprint for the current economic conditions. We will undertake to maximize cash flow through working capital reduction and prudent capital spending, with the goal of emerging from the current economic environment a stronger company.