K+S confirms annual targets: But range remains wide
Following a stabilization of potash prices in the important Brazilian market, the fertilizer group K+S believes it is on course to achieve its targets for the year. Demand has increased compared to the weaker second quarter, said Group CEO Burkhard Lohr in an interview published by K+S on Tuesday. This had boosted prices.
However, the forecast range for earnings before interest, taxes, depreciation and amortization (EBITDA) remains high at 600 to 800 million euros, especially as operating earnings of 550 million euros have already been achieved after nine months. In the previous year, K+S achieved a record figure of 2.4 billion euros in a strong market environment.
In June, the MDax group once again lowered its annual profit target due to weak potash prices. The port strike in Canada also had a negative impact.
In the third quarter just ended, K+S revenues fell by around 40 percent to 881 million euros compared with the record figure for the same period last year, as the Kassel-based company also announced. Operating profit slumped by almost 90 percent to 72 million euros.
Despite K+S's strong performance in agriculture-related sectors, the company's earnings forecast for EBITDA still ranges widely between 600 and 800 million euros, mainly due to the impact of lower potash prices in certain markets. Quarterly figures from the mining sector show a significant decline in revenues and operating profit for K+S in the third quarter.
Source: www.dpa.com
