ICL posts 78% plunge in Q2 net profits on poor sales

24 August 2009 08:17  [Source: ICIS news]

SINGAPORE (ICIS news)--Israel Chemical Ltd (ICL) said on Monday it had booked a 78% plunge in second quarter net profits to $152.3m (€106.6m) due to a sharp decrease in sales specially fertilizers.

Revenue for the three months ended 30 June almost halved to $1,082.6m as compared to $2,079.8m in the same period a year ago.

The company’s operating income was down 78% to $190.7m, as compared with the same period in 2008.

The company’s main business segment, ICL Fertilizers, reported the largest drop in sales declining 65.5% to $465.1m during the second quarter. Revenue generated from its Industrial Products and Performance Products arm booked a decline of 31.4% and 20.7% respectively.

“Despite the current crisis, and despite the fact that short-term market demand continues to be comparatively weak, the fundamentals driving long-term demand for fertilizers have not changed materially,” the company said in a statement.

ICL reported a net profit of 311.1m in the first half of the year, a decline of 70% in the same period a year ago.

Sales for the first six months stood at $1981.1m compared to sales of $3,607.9m in the first six months of 2008.

 ($1 = €0.70)

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By: Terence Teo
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