K+S Aktiengesellschaft

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Demand for fertilizers continues to recover K+S Group significantly increases revenues and earnings in the second quarter

K+S Aktiengesellschaft / Demand for fertilizers continues to recover K+S Group significantly increases revenues and earnings in the second quarter

@@start.t1@@--------------------------------------------------------------------------------   Corporate news transmitted by euro adhoc. The issuer/originator is solely   responsible for the content of this announcement. --------------------------------------------------------------------------------@@end@@

Financial Figures/Balance Sheet/quarterly report/6-month report

Subtitle: K+S Aktiengesellschaft / Demand for fertilizers continues to recover K+S Group significantly increases revenues and earnings in the second quarter

Kassel (euro adhoc) - Kassel, 12 August 2010

Demand for fertilizers continues to recover K+S Group significantly increases revenues and earnings in the second quarter

• Quarterly revenues up by 43% to just under EUR 1.1 billion
• Second quarter operating earnings reach EUR 155.5 million
         (Q2/09: EUR 18.1 million)
• Adjusted earnings per share rise to EUR 0.51 (Q2/09: EUR (0.27))
• All business segments with improved earnings situation
• Net indebtedness reduced significantly
• Outlook for 2010:

@@start.t2@@- Potash sales volume forecast again raised to between 6.5 and 7.0 million
          tonnes of goods (previously: a good 6.5 million tonnes; previous year:
          4.3 million tonnes)
        - Increase in revenues expected to be between EUR 4.6 billion and EUR 5.0
          billion (previous year: EUR 3.6 billion)
        - Operating earnings should rise to between EUR 550 million and EUR 600
          million (previous year: EUR 238.0 million)
        - Adjusted earnings per share expected to be between EUR 1.75 and EUR 1.95
          (previous year: EUR 0.56/share)@@end@@

After the successful result in the first quarter, the K+S Group also achieved  a significant increase in revenues and earnings in  the   second  quarter  of  this year. The further normalisation  in   fertilizer  demand  and  the  inclusion  of Morton Salt,  acquired   last  year,  were  the  main  drivers  of  the  positive performance.

"The pleasant development so far this year shows that has bottomed out and  that the K+S Group is back on the path to growth," says Norbert Steiner, Chairman  of the Board of Executive Directors of K+S Aktiengesellschaft. "The positive  trend in fertilizer demand is set to continue in the second  half  of  the  year  too. Together with the first-time inclusion of Morton Salt for the entire year,  this should result in significantly rising revenues and earnings of the K+S Group  in 2010."

Second quarter revenues up significantly In the second quarter, the revenues of the K+S Group rose  by  about  43%  to EUR 1,058.5 million. All in all, volume- and consolidation-related growth  was   able to more than make up for decreases in revenues attributable  to price  factors. The Salt business segment  has  significantly   increased  revenues  through  the inclusion of Morton Salt (Morton Salt revenues Q2/2010: EUR  152.5  million). The Potash and Magnesium Products and Nitrogen Fertilizers  business  segments  also achieved welcome revenue increases after the demand  for  fertilizers   recovered significantly again. At EUR 2,592.1 million, revenues in the first  half  of 2010 rose by almost 43% primarily due to volume- and  consolidation-related  effects (Morton Salt revenues H1/2010: EUR 422.3 million).

In the first half of the year, 37% of revenues were generated in the Potash  and Magnesium Products  business  segment,  followed  by   Salt  (34%)  and  Nitrogen Fertilizers (26%). The  acquisition  of   Morton  Salt  has  contributed  to  the regional distribution of revenues now being very  balanced  between  Europe  and overseas: thus about 53% of total revenues were  generated  in  Europe  and   47% overseas.

All business segments have improved their earnings situation At EUR 155.5 million, second quarter´s operating earnings  (EBIT  I)  of   the K+S Group were very significantly higher than the result of EUR 18.1  million  in the previous year. The  Potash  and  Magnesium   Products  and  Nitrogen  Fertilizers business segments increased their  earnings  due  to  the  significantly  higher demand for fertilizers that persisted from the start of the year.  The  earnings of the Nitrogen Fertilizers business segment benefited to the  tune   of  EUR 10.0 million from the release of provisions affecting  profit or  loss  after  final settlement of input costs for 2009. Earnings of the Salt business  segment  rose significantly due to consolidation effects. There was also  a  positive  one-off effect in the area of provisions in the amount of  EUR  16.2  million.  K+S Group operating earnings for the first half of 2010 stood at EUR 423.2 million and thus exceeded the figure for the previous year by about 120%.

EBITDA up sharply in the second quarter During  the  second  quarter of  2010,    earnings    before    interest,    taxes, depreciation and amortisation (EBITDA) increased to EUR  217.0  million (previous year: EUR 53.1 million). Depreciation and amortisation amounted to EUR 61.5 million and were EUR 26.5 million higher in comparison  to   the  previous  year.  Of this increase, EUR 20.8 million was accounted for by  the  inclusion  of  Morton Salt. This includes depreciation on valuations  recognised  within  the  framework  of purchase price allocation in the amount of EUR 12.3 million.

In the first half of 2010, EBITDA was EUR 550.1 million (previous   year:  EUR 262.2 million). Morton Salt accounted for EUR 96.5 million of this. The depreciation in this period totalled EUR 126.9 million and  includes  depreciation  on valuations made within the framework of the purchase price allocation  at  Morton  Salt  in the amount of EUR 28.5 million. Against this backdrop, greater importance will be assigned to EBITDA in the future when assessing  earnings  capacity, especially in the Salt business segment.

Adjusted earnings also up significantly year on year It proved possible to increase adjusted Group earnings before income taxes to EUR 134.0 million in the second quarter (previous year:  EUR  (58.5) million). These stood at EUR 371.5 million in the first half  of   2010  (previous  year:  EUR 107.1 million). Adjusted Group earnings after taxes rose to  EUR  97.5  million  in the second quarter (previous year: EUR (44.3) million) and stood at  EUR  273.3 million in the first half of 2010 (previous  year:  EUR  78.2  million).   Details  of the adjustment process can be found in the half-yearly financial report  H1/2010  on pages 11-12.

Adjusted earnings per share reach EUR 0.51 in the second quarter For the quarter under review, adjusted earnings per share  amounted  to   EUR 0.51 and were thus significantly higher than a year ago  (EUR   (0.27)).  In  the first half of 2010, they reached EUR 1.43 (previous year: EUR 0.47).

In the first half of 2010, Morton Salt contributed a total of EUR 0.08  despite a below-average winter, depreciation arising from purchase  price  allocation  and further one-off effects. Thus, since the first day of its inclusion in  the  K+S Group (1  October  2009), Morton  Salt  has,  despite  all  acquisition-related special and customary seasonal effects, contributed positively  to  the  success of the business in each quarter.

Outlook for 2010: Significant revenue and earnings increase expected In 2010, demand for fertilizers,  and  in  particular  for  potash   fertilizers, should  increase  significantly  due  to  the  low   stocks  of    single-nutrient fertilizers in the trade sector at the start of the year and due  to  the  lower potash content of the soil following two very  good  harvests  and  the  reduced application of fertilizers since autumn 2008. Furthermore, most of  the  volumes demanded by the trade sector in the first quarter in  Europe  were   consumed  by farmers, so that the stocks are again at  a  relatively low  level  before  the upcoming  autumn  fertilizing.  Moreover,   the  demand  for  fertilizers  should benefit from the persistent dry weather conditions at the  start  of  the  third quarter, the higher prices for agricultural raw materials in view  of  this  and the resultant improved future income situation of farmers. In 2010 as  a whole, we now assume global potash sales volumes of about 50 million tonnes  (previous forecast: 45 to 50 million tonnes; 2009:  32   million  tonnes).  This  increased sales forecast mainly assumes a stronger recovery of the markets in  Europe  and North America and higher expected consumption in Latin America.

In the salt sector,  the  situation  of  suppliers  for  the  early   procurement business in the third quarter in Western Europe should   benefit  from  the  long winter at the start of the year,  while  the mild  winter  in  parts  of  North America and the related high stocks are likely  to  make  the  position  in  the local tenders more difficult. In the fourth quarter, the de-icing salt  business will be influenced decisively by wintry weather conditions in Europe and  North America. In this respect, we are assuming that sales volumes will  be  on  their multi-year average level in the case of both the  European  and  North  American markets. While demand for food grade and industrial salt  in  Europe  and  North America should be stable, the South American  industrial  and  food  grade  salt market will probably grow further in line with the  regional   population  trend. Demand from the chemical industry for salt for chemical use both in  Europe  and South America is likely to remain depressed due to the global  economic  crisis, but sales volumes should increase moderately again  in  light  of  the  emerging economic recovery.

Against this backdrop, in financial year 2010, the revenues  of  the K+S  Group should rise significantly in comparison  to  the  previous year.  A  figure  of between EUR 4.6 billion and EUR 5.0 billion (previous year: EUR 3.6  billion) appears realistic from today´s perspective. In particular  the  Salt  business  segment, which will grow very significantly due to the  first-time  inclusion  of  Morton Salt for the whole  year,  but  also  the  Potash  and  Magnesium   Products  and Nitrogen Fertilizers business segments  should   experience  significant  revenue growth.

Operating earnings  EBIT  I  of  the  K+S  Group  will  probably   also  increase significantly to between EUR 550 million and EUR 600   million  this  year (previous year: EUR 238.0 million). This is attributable to the  earnings  increase  in the Potash and Magnesium Products business segment, the turnaround  in  earnings  in the   Nitrogen  Fertilizers  business    segment    and    the    already     described consolidation effect in the Salt business segment.

Based on expected depreciation  of  about  EUR  250  million  for   2010 including depreciation on valuations of  about  EUR  55  million within  the  framework of purchase price allocation at Morton Salt, we expect  EBITDA  of  between  EUR 800 million and EUR 850 million in this year (previous year: EUR 411.8 million).

At between EUR 330 million and EUR 370 million  (previous  year:  EUR 93.6 million), adjusted Group earnings after taxes should also be significantly higher in  2010 in line with the development of operating earnings.  This  would  correspond  to adjusted earnings per share of about EUR 1.75 to EUR 1.95 (previous year: EUR 0.56).

Our forecast is based on the following assumptions:

@@start.t3@@• In comparison to the first half of the year, moderately declining  average
         prices in the Potash  and  Magnesium  Products  business  segment  due  to
         expected  seasonal  product  mix  and  staggered  price  effects  with  an
         otherwise stable potash price level in the second half of the year;
      • A sales volume in the Potash and Magnesium Products  business  segment  of
         between 6.5 and 7.0 million tonnes of goods (forecast up to  now:  a  good
         6.5 million tonnes);
      • A total sales volume in the Salt business segment  of  21  to  22  million
         tonnes, of which 12 to 13 million tonnes should be accounted  for  by  de-
         icing salt. This, as customary,  assumes  a  normal  de-icing  salt  sales
         volume at its multi-year average level in the fourth quarter;
      • An average US dollar exchange rate of 1.31 USD/EUR for  2010  as  a  whole
         (average exchange rate for 2009: 1.39 USD/EUR);
      • In spite of higher interest expenses, a somewhat better financial  result,
         after this had been negatively impacted by special effects in the previous
         year;
      • A domestic Group tax rate of 27.9% to be applied in accordance with  IFRSs
         and an overall adjusted Group tax ratio derived from this of  a  good  26%
         (2009: 23.7%).@@end@@

Further significant reduction in net indebtedness expected The net indebtedness (including non-current provisions) of the  K+S  Group   fell significantly to EUR 862.1 million at the end  of  the  first   half  of  2010 (31 December 2009: EUR 1,338.9 million). With a level of indebtedness of 33% and as a result of both high operating and   free  cash  flows  expected  this  year,  K+S therefore has a strong financial base. Against the backdrop of  the  anticipated earnings development, the level of financial debt should  decline   significantly in comparison to the previous year.

Experience growth The K+S  Group  is  one  of  the  world's  leading suppliers  of  standard  and speciality fertilizers. In  the  salt   business,  K+S  is  the  world´s  leading producer with sites in Europe as well as North and South America. K+S  offers  a comprehensive range  of  goods  and  services  for  agriculture,   industry,  and private consumers which provides growth opportunities in virtually every  sphere of daily life. The K+S Group employs more than 15,000 people. The  K+S  share  - the only commodities stock on the German DAX index - is  listed  on  all  German stock exchanges (ISIN: DE0007162000, symbol: SDF).  For  additional  information on K+S please visit www.k-plus-s.com.

Note to editors The half-yearly financial report (H1/2010), an interview with  Norbert  Steiner, chairman of the Board of Executive Directors of  K+S  Aktiengesellschaft,  about the second quarter of 2010 and up-to-date  press  photos  relating  to  the  K+S Group are available under http://www.k-plus-s.com/2010h1en.

We are offering a conference call for  analysts  in  English  today   at  3  p.m. Norbert Steiner, chairman of the  Board  of  Executive   Directors,  as  well  as Joachim Felker and Jan Peter Nonnenkamp,   members  of  the  Board  of  Executive Directors, will participate in the  conference  call.  Shareholders,  investors, representatives of the press and all other interested  parties  are  invited  to follow the conference via a live webcast  (http://www.k-plus-s.com/2010h1en) or by phone (+49-69-71044-5598). The  conference  will  be  recorded and  also  be available as a podcast.

Contact: Press:

Michael Wudonig
Phone:  +49 561 9301-1262
Fax:      +49 561 9301-1666
michael.wudonig@k-plus-s.com

Investor Relations:
Christian Herrmann
Phone:  +49 561 9301-1460
Fax:      +49 561 9301-2425

christian.herrmann@k-plus-s.com

K+S Aktiengesellschaft Kommunikation und Medien Postfach 10 20 29, 34111 Kassel Bertha-von-Suttner-Str. 7, 34131 Kassel www.k-plus-s.com __________________________________________________________

Aufsichtsratsvorsitzender: Dr. Ralf Bethke Vorstand: Norbert Steiner (Vors.), Joachim Felker, Gerd Grimmig, Dr. Thomas Nöcker, Jan Peter Nonnenkamp Sitz der Gesellschaft: Kassel; Handelsregister: Kassel HRB 2669

This press release contains facts and forecasts  that  relate  to   the future development of the K+S Group and its companies.  The   forecasts are estimates that we have made on the basis of  all  the   information available to us  at  this  moment  in  time.  Should  the assumptions underlying these forecasts prove not to be correct or   risks  arise  - examples  of  which  are  mentioned  in  the  risk   report  -,  actual

@@start.t4@@developments and events may deviate from current expectations. Outside statutory  disclosure  provisions,  the  Company  does  not  take  any obligation to update the statements contained in this press release.

|K+S Group at a Glance              |    |                 |      |              | |            |
|Q2/2010                                        | |                 |      |              | |            |
| |                                                 | |                 |      |              | |            |
|All figures in accordance with    | |Q2              |      |Q2          | |            |
|IFRSs                                            | |                 |      |              | |            |
| |                                                 | |Apr.-June  |      |Apr.-June| |            |
| |                                                 | |2010          |      |2009        | |Change  |
| |                                                 | |EUR million  |      |EUR million| |in %      |
| |                                                 | |                 |      |              | |            |
|Revenues                                        | |1,058.5      |      |738.7      | |+43.3    |
| |                                                 | |                 |      |              | |            |
| |Potash and Magnesium Products  | |463.5         |      |354.3      | |+30.8    |
| |Nitrogen Fertilizers                 | |287.4         |      |257.4      | |+11.7    |
| |Salt                                          | |275.3         |      |99.3        | |+177.2  |
| |Complementary Business Segments| |32.2          |      |27.6        | |+16.7    |
| |Reconciliation                          | |0.1            |      |0.1         | |-          |
| |                                                 | |                 |      |              | |            |
|Operating earnings (EBIT I)         | |155.5         |      |18.1        | |+759.1  |
| |                                                 | |                 |      |              | |            |
| |Potash and Magnesium Products  | |119.2         |      |53.8        | |+121.6  |
| |Nitrogen Fertilizers                 | |26.0          |      |(26.6)    | |-          |
| |Salt                                          | |21.8          |      |(0.6)      | |-          |
| |Complementary Business Segments| |6.2            |      |3.2         | |+93.8    |
| |Reconciliation                          | |(17.7)        |      |(11.7)    | |-          |
| |                                                 | |                 |      |              | |            |
|Earnings after operating hedges (EBIT |126.1  |      |37.7        | |+234.5  |
|II)                                                        |          |      |              | |            |
| |                                                 | |                 |      |              | |            |
|Financial result                          | |(21.5)        |      |(76.6)    | |-          |
|                                                    | |                 |      |              | |            |
|Earnings before income taxes        | |104.6         |      |(38.9)    | |-          |
| |                                                 | |                 |      |              | |            |
|Earnings before income taxes,         | |134.0  |      |(58.5)    | |-          |
|adjusted1)                                        | |          |      |              | |            |
| |                                                 | |                 |      |              | |            |
|Group earnings after taxes          | |76.3          |      |(30.2)    | |-          |
| |                                                 | |                 |      |              | |            |
|Group earnings after taxes, adjusted1)| |97.5 |      |(44.3)    | |-          |
| |                                                 | |                 |      |              | |            |
|Earnings per share, adjusted (EUR)1)|0.51          |      |(0.27)    | |-          |
| |                                                    | |              |      |              | |            |
|Capital expenditure2)                    | |34.4        |      |41.5        | |(17.1)  |
|                                                      | |              |      |              | |            |
| |                                                    | |              |      |              | |            |
|1)  The adjusted key figures only contain the earnings actually realised |
|on operating forecast hedges for the respective reporting period. The      |
|changes in the market value of operating forecast hedges still                 |
|outstanding, however, are not taken into account. Any resulting effects  |
|on deferred and cash taxes are also eliminated; tax rate Q2/10: 27.9%      |
|(Q2/09: 27.9%).                                                                                            |
|                                                                                                                    |
|2)  Cash-effective investments in or depreciation on property, plant and |
|equipment, intangible assets.                                                                      |


|K+S Group at a Glance              |    |                 |      |              | |            |
|H1/2010                                        | |                 |      |              | |            |
| |                                                 | |                 |      |              | |            |
|All figures in accordance with    | |H1              |      |H1          | |            |
|IFRSs                                            | |                 |      |              | |            |
| |                                                 | |Jan.-June  |      |Jan.-June| |            |
| |                                                 | |2010          |      |2009        | |Change  |
| |                                                 | |EUR million  |      |EUR million| |in %      |
| |                                                 | |                 |      |              | |            |
|Revenues                                        | |2,592.1      |      |1,814.4  | |+42.9    |
| |                                                 | |                 |      |              | |            |
| |Potash and Magnesium Products  | |961.9         |      |720.3      | |+33.5    |
| |Nitrogen Fertilizers                 | |672.9         |      |599.5      | |+12.2    |
| |Salt                                          | |891.7         |      |437.6      | |+103.8  |
| |Complementary Business Segments| |65.4          |      |56.7        | |+15.3    |
| |Reconciliation                          | |0.2            |      |0.3         | |(33.3)  |
| |                                                 | |                 |      |              | |            |
|Operating earnings (EBIT I)         | |423.2         |      |192.1      | |+120.3  |
| |                                                 | |                 |      |              | |            |
| |Potash and Magnesium Products  | |269.8         |      |150.8      | |+78.9    |
| |Nitrogen Fertilizers                 | |40.5          |      |(18.5)    | |-          |
| |Salt                                          | |129.7         |      |79.6        | |+62.9    |
| |Complementary Business Segments| |12.6          |      |5.2         | |+142.3  |
| |Reconciliation                          | |(29.4)        |      |(25.0)    | |-          |
| |                                                 | |                 |      |              | |            |
|Earnings after operating hedges (EBIT |389.0  |      |190.6      | |+104.1  |
|II)                                                        |          |      |              | |            |
| |                                                 | |                 |      |              | |            |
|Financial result                          | |(51.7)        |      |(85.0)    | |-          |
|                                                    | |                 |      |              | |            |
|Earnings before income taxes        | |337.3         |      |105.6      | |+219.4  |
| |                                                 | |                 |      |              | |            |
|Earnings before income taxes,          | |371.5  |      |107.1      | |+246.9  |
|adjusted1)                                         | |          |      |              | |            |
| |                                                 | |                 |      |              | |            |
|Group earnings after taxes          | |248.6         |      |77.1        | |+222.4  |
| |                                                 | |                 |      |              | |            |
|Group earnings after taxes, adjusted1)| |273.3|      |78.2        | |+249.5  |
| |                                                 | |                 |      |              | |            |
|Earnings per share, adjusted (EUR)1)|1.43          |      |0.47        | |+204.3  |
| |                                                    | |              |      |              | |            |
|Capital expenditure2)                    | |61.7        |      |70.6        | |(12.6)  |
|                                                      | |              |      |              | |            |
|Employees as of 30.06. (number)    | |15,102    |      |12,233    | |+23.5    |
| |of which trainees (number)          | |495         |      |483         | |+2.5      |
|                                                                                                                    |
|1)  The adjusted key figures only contain the earnings actually realised |
|on operating forecast hedges for the respective reporting period. Changes|
|in the market value of operating forecast hedges still outstanding,         |
|however, are not taken into account. Any resulting effects on deferred    |
|and cash taxes are also eliminated.                                                            |
|                                                                                                                    |
|2)  Cash-effective investments in or depreciation on property, plant and |
|equipment, intangible assets.                                                                      |@@end@@

@@start.t5@@end of announcement                                                 euro adhoc
--------------------------------------------------------------------------------@@end@@

ots Originaltext: K+S Aktiengesellschaft
Im Internet recherchierbar: http://www.presseportal.ch

Further inquiry note:
Contact:
Press:
Michael Wudonig
Phone: +49 561 9301-1262
Fax: +49 561 9301-1666
michael.wudonig@k-plus-s.com

Investor Relations:
Christian Herrmann
Phone: +49 561 9301-1460
Fax: +49 561 9301-2425
christian.herrmann@k-plus-s.com

K+S Aktiengesellschaft
Kommunikation und Medien
Postfach 10 20 29, 34111 Kassel
Bertha-von-Suttner-Str. 7, 34131 Kassel
www.k-plus-s.com
__________________________________________________________

Aufsichtsratsvorsitzender: Dr. Ralf Bethke
Vorstand: Norbert Steiner (Vors.), Joachim Felker, Gerd Grimmig, Dr. Thomas
Nöcker, Jan Peter Nonnenkamp
Sitz der Gesellschaft: Kassel; Handelsregister: Kassel HRB 2669

Branche: Chemicals
ISIN:      DE0007162000
WKN:        716200
Index:    DAX, Midcap Market Index, CDAX, Classic All Share, HDAX,
              Prime All Share
Börsen:  Frankfurt / regulated dealing/prime standard
              Berlin / regulated dealing
              Hamburg / regulated dealing
              Stuttgart / regulated dealing
              Düsseldorf / regulated dealing
              Hannover / regulated dealing
              München / regulated dealing



Weitere Meldungen: K+S Aktiengesellschaft

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