Israel Chemicals Q3 profits halved

As the company prepares to dual list on the NYSE, lower demand and prices for potash and phosphates adversely affected results.

In the shadow of labor unrest at most of its Negev plants and volatility in the global potash market, Israel Chemicals Ltd. (TASE: ICL) this morning reported its third quarter results. Revenue fell 18% from the corresponding quarter of 2013 to $1.445 billion. Net profit plunged 50% to $196 million (excluding the impact of tax to release trapped profits and updating deferred taxes following the hike in company tax) from $394 million in the corresponding quarter. If these factors are included profit fell 80%.

Revenue according to region indicates a fall in sales in Asia to just $235 million compared with $488 million in the corresponding quarter. Revenue in North America and Europe was relatively stable totaling $338 million and $545 million respectively.

revenue according to products reflected a reduction in demand for fertilizers and a fall in prices on the global potash and phosphates markets, which influenced the poorer results for the quarter. Israel Chemicals also reported a slowdown in demand for fire retardants and a fall in sales of bromine. On the other hand, the company said that its diverse range of products and a stable business environment improved results in special purpose chemicals.

Israel Chemicals board has approved a dividend of $54.5 million, which will be paid on December 18.

The company also reported that it is preparing to dual list on the NYSE.

Published by Globes [online], Israel business news - - on November 13, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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