10 November 2011 07:43 [Source: ICIS news]
SINGAPORE (ICIS)--K+S reported an 18.3% year-on-year rise in net income to €91.1m ($123.1m) in the third quarter of this year, boosted by strong demand for its fertilizers and significantly higher potash prices, the Germany-based producer said on Thursday.
The firm’s sales rose by 17.3% year on year to €1.17bn in July-September, while its operating earnings surged by 69% to €198.5m, the company said in a statement.
The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 49% year on year to €254.5m in the third quarter, it said.
The third quarter was characterised by strong demand for fertilizers, the company said.
“The high level of agricultural prices favoured the income prospects of the agricultural sector, so that there was a significant incentive to raise yields per hectare through the needs-based use of fertilizers,” it said.
“For potash and magnesium products, this resulted in a very high utilisation of production capacities throughout the world. This environment favoured the development of prices for potassium chloride,” the company added.
For the nine months ending September this year, K+S’s net income grew by 26.8% year on year to €413.5m, while sales rose by 15% to €3.85bn.
The company’s EBITDA rose by 34% year on year to €926.9m in the same period.
Looking ahead, the company said its groupwide sales for the full year of 2011 are expected to rise significantly to between €5bn and €5.25bn.
K+S posted total revenues of €4.63bn in 2010.
The firm expects a full-year 2011 EBITDA of about €1.15bn to €1.25bn and operating earnings of between €950m and €1bn.
“This can be attributed to the strongly rising earnings in the Potash and Magnesium Products and Nitrogen Fertilizers business segments,” the company said.
“However, the operating earnings of the Salt business segment will probably decline moderately,” it added.
($1 = €0.74)
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