Germany's K&S Q1 net profit down despite strong sales, earnings

14 May 2013 10:59  [Source: ICIS news]

LONDON (ICIS)-- Kali & Salz (K&S) first quarter net profit was down by 11% at €187.5m ($243.5m) – or flat if 2012 earnings from its former nitrogen business are excluded, the Germany-headquartered potash producer said on Tuesday.

Adjusted group earnings from continuing operations were up by 13% at €190.2m, on higher volumes, the company added.

First quarter revenues were up by 19% at €1.28bn, on volume-related increases from the firm’s potash and magnesium products businesses. These offset a “moderate” price decrease in the salt business, K&S said.

“In the western European de-icing salt business, persistent wintery weather conditions resulted in a significant rise in revenues”, it added.

First quarter group earnings before interest, tax, depreciation and amortisation (EBITDA) was up by 11% at €336.3m.

“We have made a very decent start to the new year,” executive board chairman Norbert Steiner said. “Our Potash and Magnesium Products business unit achieved its best first quarter so far.”

K&S said its revenues should increase slightly this year compared to 2012. The company is also forecasting a slight increase in operating earnings in 2013, with a drop in earnings from the potash and magnesium products businesses more than made up by higher earnings from salt.

Group operating earnings were up by 12% in the first quarter.

($1 = €0.77)

By: Nigel Davis
+44 20 8652 3214

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