Israel Chemicals profit plunges

Potash sales reached a record in the first quarter but were sold for lower prices.

Israel Chemicals Ltd. (TASE: ICL) reported a sharp fall in profits in the first quarter of 2014. Revenue was $1.61 billion in the first quarter, down slightly from $1.61 billion in the corresponding quarter of 2013. The fall from the corresponding quarter was mainly due to a drop in global prices, which was offset by a rise in sales volume.

Gross profit for the first quarter of 2014 totaled $563 million, compared with $659 million in the first quarter of 2013. Operating profit for the first quarter of 2014 totaled $243 million, 33% down from $363 million for the first quarter of 2013.

The bottom line was that net profit to shareholders for the first quarter of 2014 totaled $131 million, down 57% from $305 million for the corresponding quarter.

Adjusted net profit was $189 million in the first quarter of 2013, after eliminatiing $58 million for non recurring tax expenses following assessment discussions in European subsidiaries and increased costs due to a strike at Rotem Amfert.

In the first quarter of 2014, Israel Chemicals unit ICL Fertilizers sold a record 1.46 million tons of potash, up 12% from 1.3 million tons in the corresponding quarter. The rise was mainly due to increased sales in China, Brazil and Europe.

The company's board of directors will distribute $91.5 million in dividends on June 25.

Published by Globes [online], Israel business news - www.globes-online.com - on May 15, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018