Significant rise in Q1 revenues and earnings / Forecast raised for year as a whole
K+S Group’s first quarter revenues and earnings figures, especially in the Nitrogen Fertilizers and Salt business segments, are substantially above the corresponding figures for the previous year and also considerably exceed the current consensus expectations. Therefore, key financial data for the first quarter is already being released today: Revenues reached € 1,776.5 million (Q1/10: € 1,533.6 million), operating earnings EBIT I € 384.3 million (Q1/10: € 267.7 million), and adjusted earnings after taxes € 272.0 million or € 1.42 per share (Q1/10: € 175.8 million or € 0.92 per share).
After the normalisation of demand for fertilizers in 2010, the first quarter of 2011 was characterised by strong demand. The unchanged high level of agricultural prices favoured the earnings prospects of the agricultural sector, so that there is a significant incentive to raise yields per hectare through the increased use of fertilizers. For both potash and magnesium products and nitrogen fertilizers, this resulted in a very high utilisation of production capacities throughout the world. In the salt business segment, the wintry weather on the East Coast of the United States and in Europe triggered above-average demand for de-icing salt.
Against the backdrop of the positive demand and price trends emerging during the course of the first quarter of 2011, the revenues of the K+S Group should rise significantly (previously: tangibly) in financial year 2011 against the previous year. Operating earnings EBIT I should increase strongly (previously: significantly) in comparison to the figures for the previous year. This is primarily due to a probably strong (previously: significant) growth in earnings in the Potash and Magnesium Products business segment as well as a tangible (previously: moderate) improvement in operating earnings in the Nitrogen Fertilizers business segment. Operating earnings of the Salt business segment will probably decline moderately in comparison to the record results experienced last year.
As planned, the K+S Group will release its Quarterly Financial Report for the first quarter 2011 on 11 May 2011.
Kassel, 2 May 2011
The Board of Executive Directors
End of the ad hoc disclosure