The fall is global demand has reached Israel Chemicals Ltd. (TASE: ICL) as well. Its Israel Chemicals Fertilizers unit is reducing production of phosphate fertilizers. Israel Chemicals' share price is down 4.3% on the news. As usual, the stock has the highest turnover on the Tel Aviv Stock Exchange.
Israel Chemicals, which is controlled by Israel Corp. (TASE: ILCO) (52.9%) and Potash Corp. of Saskatchewan (NYSE: POT) (11.3%), is adjusting production to global demand in other areas too. The company will continue potash production at Sodom as planned but will redirect sales to its fertilizer companies in Europe. Israel Chemicals enjoys an advantage in the climate of the Dead Sea area, which enables it to store products indefinitely, unlike its competitors. In effect, Israel Chemicals will cut potash production at its two European plants, and sales of the European potash companies will be based on stockpiles of potash in Israel.
In the fourth quarter, Israel Chemicals reported the highest profit ever recorded by an Israeli company - $846 million, excluding one-time expenses and growth in profitability mainly thanks to a rise in prices and sales volumes in the fertilizers segment.
Israel Chemicals' shre price has fallen 41.4% since the beginning of the year, after rising some 60% in the first half. The company has a market cap of some NIS 35.8 billion.
Published by Globes [online], Israel business news - www.globes.co.il - on December 22, 2008
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