(Reuters) -Lithium producer Livent Corp on Tuesday cut the top end of its 2022 earnings and sales forecast, citing inflation and other macroeconomic pressures weighing on its output of the electric vehicle battery metal.
Shares fell 2.5% in after-hours trading following the news, despite Livent posting better-than-expected quarterly profit.
“Lithium demand has remained robust despite some near-term supply chain disruptions and global macro concerns,” Chief Executive Paul Graves said in a statement.
Livent now expects 2022 sales of $815 million to $845 million, compared with a previous estimate for annual sales between $800 million to $860 million.
The company also cut the top end of its adjusted profit forecast by $5 million, to $370 million.
The revised forecasts would still, if realized, mark a jump from 2021 levels, as lithium demand recovered from the coronavirus pandemic.
The Philadelphia-based company posted third-quarter net income of $77.6 million, or 37 cents per share, compared with a net loss of $12.6 million, or a loss of 8 cents per share, in the year-ago period.
Excluding one-time items, Livent earned 41 cents per share. By that measure, analysts expected earnings of 40 cents per share, according to IBES data from Refinitiv.
Livent extracts lithium from brine formations in Argentina and processes the metal into a form usable for EV batteries in North Carolina, where the company said an expansion of a processing facility is nearly complete.
In August, Livent struck a six-year lithium supply deal worth nearly $200 million with General Motors Co.
(Reporting by Ernest Scheyder in HoustonEditing by Matthew Lewis)