Israel’s Makhteshim Agan Q2 net profit dips 3.5% on heavy tax expense

13 August 2012 10:32  [Source: ICIS news]

SINGAPORE (ICIS)--Israel's fertilizer producer Makhteshim Agan reported a second-quarter 2012 net profit of $42m (€34m), down 7.6% year on year largely on heavy tax expenses.

Tax on the company’s second-quarter profit surged 51% to $21.7m, the company said in a statement issued over the weekend.

Sales for the June quarter, on the other hand, grew just over 8% to $783.4m, with operating profit rising 15.7% to $100.8m, it said.

“The increase [in sales] reflected a rise in quantities sold, particularly in  the Americas and in Asia Pacific together with higher selling prices that compensated for higher costs of raw materials, offset partially by the negative impact of fluctuating exchange rates,” Makhteshim Agan said.

Second-quarter earnings before interest, tax, depreciation and amortisation (EBITDA) increased 14% to $136.1m.

In the first half of the year, Makhteshim Agan said it registered a 4.3% year-on-year decline in net profit to $131.3m, even as sales increased 7.3% to $1.61bn.

Tax on income for the six-month period more than tripled to $33.9m, the company said.

Operating profit for January-June 2012, was up 13.3% year on year to $225.8m, the company said.

EBITDA for the first six months of the year was up 13.9% to $299.3m, the Israeli firm said.

By: Pearl Bantillo
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