06 August 2013 14:46 [Source: ICIS news]
LONDON (ICIS)--German fertilizer major K+S said on Tuesday that it can no longer maintain its previous 2013 outlook of a slight year-on-year increase in operating earnings.
K+S cited as the reason for this the announcement last week by Russia’s Uralkali regarding leaving the sales organisation it operates with Belarusian fertilizer firm Belaruskali, and instead expanding its own potash production while accepting price reductions.
K+S said that Uralkali’s move wiped off billions of euros in stock market valuations in the fertilizer industry within a few days and “created considerable uncertainty about future volume and price trends on the market for potash fertilizers”.
“Against this backdrop, K+S takes a cautious stance and decided today that it will no longer maintain its forecast for 2013 that a slight increase in operating earnings will be possible,” the Kassel-based company said.
K+S CEO Norbert Steiner added that, in contrast to competitors who are focused exclusively on potash, K+S has a second important operation, in its international salt business.
“In addition, K+S offers its customers a product range that is not available from any other potash producer,” Steiner said.
“That makes us more robust in the event that competition intensifies,” he added.
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