Israel Chemicals (TASE: ICL: NYSE: ICL) reported lower revenue for the fourth quarter and full-year 2014 this afternoon.
In the fourth quarter, revenue fell to $1.4 billion, 1% below the corresponding quarter of 2013. Adjusted net profit for the fourth quarter was $108 million, 45% down from the corresponding quarter of 2013, mainly due to higher financial expenses as a result of changes in fair value of hedging instruments and a higher tax rate as a result of the shekel depreciation against the US dollar. Israel Chemicals added that the effect of the shekel depreciation against the dollar will turn positive in the coming quarters.
Operating profit rose to $174 million in the fourth quarter of 2014 from $123 million in the corresponding quarter of 2013 and EBITDA fell to $305 million from $317 million in the fourth quarter of 2013.
Israel Chemicals revenue in full year 2014 was $6.11 billion, down from $6.27 billion in 2013. Net profit in 2014 was $695 million, down from $1.01 billion in 2013.
Israel Chemicals CEO Stefan Borgas said, "During 2014, Israel Chemicals made substantial progress in implementing key elements of our 'Next Step Forward Strategy.' We are strengthening our mineral assets position through the strategic alliance with Yunnan Yuntianhua in China, which will give Israel Chemicals an additional backward integrated world scale phosphate platform, through our strategy expansion of potash and vacuum salt at ICL Iberia and polysulphate at ICL UK, and through our alliance with Allana potash to mine potash in Ethiopia."
Published by Globes [online], Israel business news - www.globes-online.com - on February 11, 2015
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