Israel Chemicals reports $370m fourth quarter profit

The result is 50% better than in the corresponding quarter, but below market expectations.

Israel Chemicals Ltd. (TASE: ICL) has reported double-digit revenue and profit growth for the fourth quarter and full-year of 2011.

Fourth quarter revenue rose 20% to $1.71 billion from $1.42 billion for the corresponding quarter of 2010, and net profit rose 50% to $370 million ($0.29 per share) from $245 million. The company missed the "Globes"-Psagot Investment House Ltd. analysts' consensus of earnings per share of $0.31 on $1.74 billion revenue.

Israel Chemicals will distribute a dividend of $260 million for the fourth quarter.

Israel Chemicals CEO Akiva Mozes's salary cost was NIS 16.3 million in 2011.

Full-year revenue rose 24% to $7.07 billion in 2011 from $5.69 billion in 2010. The record revenue was achieved by growth in all the company's business segments and sales growth in all markets. Net profit rose 48% to $1.51 billion ($1.19 per share) in 2011 from $1.02 billion in 2010. The company beat the "Globes"-Psagot analysts' consensus of $1.15 earnings per share on $7.06 billion revenue.

Cash flow from operations fell to $1.27 billion in 2011 from $1.54 billion in 2010, which the company attributed to a $165 million one-time tax payment for 2004-08. The cash flow and increased financial liabilities were used to acquire companies and operations, and for increased investment in fixed assets and facilities.

Israel Chemicals' sales distribution showed growth in markets which it has marked as having strong growth potential. Sales in Asia, mainly China and India, rose 30% to $2.09 billion in 2011, from 1.68 billion in 2010. Sales in Europe rose 34% to $2.42 billion from $1.89 billion, sales in North America rose 19% to $1.36 billion from $1.05 billion, sales in Latin America rose 9% to $666 million from $620 million, and sales in Israel rose 5% to $377 million from $313 million.

Israel Chemicals' share price rose 0.9% in early trading today to NIS 43.50, giving a market cap of NIS 55 billion.

Published by Globes [online], Israel business news - - on March 27, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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