Israel Chemicals posts 8% rise in Q3 sales

Israel Chemicals

Foreign investment in TASE hits five-year high

The company has earmarked $435 million for investment in its Catalonia potash works.

Israel Chemicals Ltd. (TASE: ICL) has reported sales for the third quarter of 2014 of $1.56 billion, representing an increase of 8% compared with $1.46 billion for the third quarter of 2013. The company says that this increase derived primarily from increased quantities sold of potash and brominated-based flame retardants, from the consolidation of companies acquired during 2014 and fluctuations in the exchange rate. The increase was offset, in part, by a reduction in selling prices.

Gross profit for the third quarter of 2014 increased by 14% to $577 million compared with $506 million in the third quarter of 2013. Gross margin for the quarter was 37%, compared with 35% for the third quarter of 2013.

Operating income for the third quarter of 2014 totaled $262 million, representing an increase of 18% compared with $222 million for the third quarter of 2013. The increase resulted from higher quantities sold in most of the segments as well as from the implementation of the efficiency plan.

Israel Chemicals posted a net profit attributable to shareholders for the third quarter of 2014 of $180 million, compared with $78 million in the comparable quarter of 2013, and adjusted net income of $196 million in the comparable quarter of 2013.

Israel Chemicals president and CEO Stefan Borgas said, "The third quarter was marked by solid achievement in a number of financial and business parameters. This gives us the confidence that ICL is on the correct path to create significant and long-term growth. ICL is encouraged by the success of the efficiency plans that we have implemented at a number of our business and managerial units which are meant to lead to a savings of $80 million already by the end of 2014, and we intend to expand these plans to other business units as well, including Dead Sea Works and Bromine Compounds.

"In addition, our efforts to advance ICL's core businesses in agriculture, food and engineered materials in the global markets are beginning to bear fruit and achieve results. We will continue to evaluate the sale of additional non-core businesses as we did successfully a few weeks ago when we signed an agreement to sell our APW business, and will invest the proceeds from these divestments in our core businesses, both in existing projects, as well as in attractive new projects outside of Israel which we are currently examining."

Among the most important forthcoming developments in its business, Israel Chemicals says it will invest $435 million in several stages in capacity expansion and optimization at its potash production facility at Suria, Catalonia, Spain.