Livent cuts FY19 adjusted EPS view to 56c-66c from 92c-98c, consensus 95c
Cuts FY19 revenue view to $435M-$475M from $495M-$525M, consensus $513.6M. Livent does not expect to see a meaningful change in demand for high-performance lithium hydroxide for use in high-nickel cathode chemistries until late 2019 or early 2020 and has reduced its full-year forecasts for volume and pricing accordingly. These reductions, combined with cost headwinds from the Argentina operations due to lost production in the first quarter and unfavorable currency movements, has resulted in lower full-year revenue and earnings guidance. "We are seeing weaker near-term demand for our high-performance lithium hydroxide, as several major customers have informed us about recent decisions to delay their own commercial launches of high-nickel cathode chemistries," continued CEO Graves. "This will result in lower delivered volumes of lithium hydroxide to these customers in 2019 than previously indicated and lower overall sales volumes for the year. In addition, it will result in Livent selling more hydroxide in China for use in cathode chemistries where performance requirements are not as high."