17 October 2008 09:39 [Source: ICIS news]
LONDON (ICIS news)--Norway's Yara more than doubled third-quarter net income to Norwegian kroner (Nkr) 3.36bn ($515m, €383m) from Nkr1.49bn in the year-earlier period as higher prices offset increased raw material costs, the fertilizer and industrial gas producer said on Friday.
Operating income was more than four times higher, increasing to Nkr4.6bn from Nkr1.1bn in the third quarter of 2007, while EBITDA (earnings before interest, tax, depreciation and amortisation) rose to Nkr6.35bn from Nkr1.9bn in the same period last year.
"Yara delivered strong earnings in the third quarter as higher fertilizer prices more than offest raw material costs," said CEO Jorgen Ole Haslestad.
The results do not take into account third-quarter 2007 figures for Kemira GrowHow which Yara acquired earlier this year, the company said.
Downstream segment sales were in line with last year but, excluding the acquisition of Finland's Kemira GrowHow , underlying volumes declined due to lower sales in Brazil and southeast Asia, Yara said.
The company predicted continuing strong demand for fertilizer and benefits from lower global energy prices as well as delays to new capacity. Yara would also benefit from a recent $1.6bn takeover of Canada's Saskferco, it said.
Yara has seen a slowdown in some fertilizer deliveries following the credit crunch but said its business model allowed for "flexibility to handle demand volatility better than most".
($1 = NKr6.52/€1 = NKr8.77)
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