Source : EuropeanMarkets
Norbert Steiner, Chairman of the Executive Board at K+S AG commented :
"The K+S Group continued to grow in the first nine months of the current year. Revenues and operating earnings were up significantly compared with the same period in the previous year. “The strong performance of our Salt business significantly contributed to this positive development, while our potash business has also proved robust. We therefore continue to expect a significant increase in operating earnings in 2015.”
Revenues in the First Nine Months up Significantly Over the Previous Year
The K+S Group increased its revenues by 14% to € 3.2 billion in the first nine months of 2015. Both business units profited mainly from higher average selling prices and a stronger US dollar versus the euro. At € 891 million, revenues in the third quarter were up around 8% on the previous year’s figure.
Operating Earnings up 23% on Previous Year
The operating earnings (EBIT I) of the K+S Group reached € 628 million in the first nine months of 2015, thus exceeding the previous year’s figure by around 23%. This improvement in earnings is due primarily to price increases in the Salt business unit in North America and the higher average prices in the Potash and Magnesium Products business unit compared with the same period in the previous year. Alongside this, the stronger US dollar versus the euro had a positive effect.
EBIT I of the K+S Group came in at € 132 million in the third quarter, remaining roughly at the same level as in the previous year. Positive price and currency effects in the Salt business unit were able to more than offset declining sales volumes in the Potash and Magnesium Products business unit.
Group Earnings up Significantly in Nine Month Period
Adjusted Group earnings after taxes were € 406 million after the first nine months of the current financial year, representing an increase of 36%. Adjusted earnings per share reached € 2.12 in the same period compared with € 1.56 in the previous year. Adjusted Group earnings after taxes amounted to € 89 million (Q3/14: € 76 million), resulting in a figure of € 0.46 per share compared with € 0.40 for the same quarter in the previous year.
Outlook for 2015: Significant Increase in EBIT I Confirmed
K+S confirms its previous forecast of a significant increase in operating earnings. The Group is expecting an EBITDA of between € 1.06 billion and € 1.11 billion in spite of reduced availability of volumes in the Potash and Magnesium Products business unit and the current weakness in the potassium chloride market (2014: € 896 million) and an EBIT I of between € 780 and € 830 million (2014: € 641 million). K+S has trimmed the previously assumed top end of the range slightly for the two key figures (EBITDA: € 1.14 billion/ EBIT I: € 860 million) on account of the effects already described.
The revenues of the K+S Group in the 2015 financial year should be significantly higher compared with the previous year (2014: € 3.82 billion). At the same time, both business units should profit from a higher year-on-year average price level and positive exchange rate effects. K+S is expecting revenues of between € 4.3 and € 4.5 billion (previous forecast: € 4.35 to € 4.55 billion).
Adjusted Group earnings after taxes will follow the trend in operating earnings and consequently also be significantly higher than in the previous year (2014: € 367 million). Earnings are expected to come in at between € 490 million and € 540 million.
Source : Press Release K+S AG, Kassel (Germany), November 11, 2015
