Israel Chemicals Ltd. (TASE: ICL) reported lower profits on flat revenue for the second quarter of 2012 and will distribute a dividend of $285 million.
Revenue edged up 2% to $1.96 billion for the second quarter from $1.92 billion for the corresponding quarter of 2011, but net profit fell to $407.3 million ($0.32 per share) from $426.2 million. The company nonetheless beat the "Globes"-Psagot Investment House Ltd. analysts' consensus of $0.29 earnings per share on $1.8 billion revenue.
Higher sales in Asia and Latin America offset lower sales in Europe and North America. Sales in Asia rose to 578.8 million for the second quarter from $471.1 million for the corresponding quarter and Latin American sales rose to 280.6 million from $226 million. Sales in Europe, Israel Chemicals' largest market, fell to $593.5 million for the second quarter from $666.9 million for the corresponding quarter and North American sales fell to $329.2 million from $415.8 million. Sales in Israel rose to $137.1 million from $95.5 million.
Higher fertilizer sales offset lower sales in industrial and performance products. Fertilizer sales - potash and phosphates - rose 8% to $1.19 billion, 57.5% of sales in the second quarter from $1.1 billion in the corresponding quarter. Industrial products (bromine-based products) sales fell to $401.2 million for the second quarter from $424.4 million for the corresponding quarter and performance product (phosphoric acid) sales fell to $377 million from $408 million.
Second quarter potash sales rose 12% to 1.5 million tons from 1.4 million tons in the corresponding quarter, and phosphate sales rose 17% to 511,000 tons from 436,000 tons.
Israel Chemicals said, "Demand for potash was lower in the second quarter than in the first quarter. Demand was affected by the postponement of orders by Indian importers and low demand in the US and Europe. Despite the drop in demand in the potash market compared with the corresponding quarter of last year, ICL Fertilizers' deliveries were higher compared with the corresponding quarter, mainly due to deliveries to China and Brazil. Deliveries of the balance of contracts with India and China and continued strong demand in Brazil are expected to have a positive effect on the third quarter of 2012."
Cash flow from operations rose 28% to $363 million for the second quarter from $284 million for the corresponding quarter.
Israel Chemicals' share price was unchanged in early trading today at NIS 46.22, giving a market cap of NIS 58.8 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on August 15, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012