11 November 2010 10:09 [Source: ICIS news]
LONDON (ICIS)--K+S Group’s net profit surged during the third quarter to €76.8m ($105.2m), from €3.7m in the same period last year, as the recovery in demand for fertilizers continued, the German fertilizer major said on Thursday.
The company reported third-quarter operating earnings before interest and tax (EBIT) of €108.5m, up from €9.4m in the third quarter of 2009.
Revenues for the three months ending on 30 September reached €1.06bn, up 52% compared with €698m during the same three months last year.
K+S said that its potash and magnesium products and nitrogen fertilizers business segments improved their earnings as a result of the considerably higher demand for fertilizers from the start of the year.
A rise in earnings in the salt business segment was due to the positive effect of consolidation (€18.3m), particularly the consolidation of Morton Salt, and to an increase in the early stocking-up of de-icing salt.
The inclusion of Morton Salt also contributed to a significant increase in the company’s revenues and earnings in the third quarter, said K+S.
“The development in our most important business segments, potash and magnesium products and salt, in the third quarter was better than expected. This has prompted us to raise our earnings forecast for the current year,” said Norbert Steiner, chairman of the board of executive directors.
“For 2011 too, we are confident that we will be able to significantly raise both operating earnings and adjusted group earnings after taxes,” Steiner added.
K+S raised its full-year 2010 EBIT guidance to €630m-670m, up from earlier guidance of €550m-600m.
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