K+S Aktiengesellschaft

EANS-News: K+S Aktiengesellschaft
Very successful second quarter 2012: K+S Group significantly boosts revenues and earnings

--------------------------------------------------------------------------------
  Corporate news transmitted by euro adhoc. The issuer/originator is solely
  responsible for the content of this announcement.
--------------------------------------------------------------------------------
quarterly report/6-month report/K+S Aktiengesellschaft


Kassel (euro adhoc) - Kassel, 14 August 2012

Very successful second quarter 2012
K+S Group significantly boosts revenues and earnings


 - Very good business performance for potash and magnesium products
 - As expected, weak early stocking-up in salt business
 - Quarterly revenues up 21 % to EUR 996.5 million
 - Operating earnings EBIT I reach EUR 219.8 million (+ 21 %)
 - Adjusted earnings per share from continued operations increase by 17.5 % to
   EUR 0.74
 - Outlook for financial year 2012 confirmed:

     - Stable revenues between EUR 3.9 billion and EUR 4.2 billion expected
(2011:
       EUR 4.0 billion)
     - Operating earnings EBIT I should reach between EUR 820 million and EUR
900
       million (2011: EUR 906.2 million)
     - Adjusted earnings per share from continued operations expected to be
       between EUR 2.85 and EUR 3.15 (2011: EUR 3.77/share)


In the Potash and Magnesium Products  business  segment  of  the  K+S  Group,  a
strong overseas business and good early stocking-up in Europe at the end of  the
reporting period have led to significant rates  of  increase  for  revenues  and
earnings in the second  quarter,  in  comparison  to  the  same  period  of  the
previous year.

"The current demand  development  for  potash  and  magnesium  products  in  the
markets relevant to us should  therefore  continue  in  the  coming  months  and
should cause this business  segment  to  show  even  slightly  rising  operating
earnings", says Norbert Steiner, Chairman of the Board  of  Executive  Directors
of K+S Aktiengesellschaft. "Against this backdrop  we  should  therefore  remain
able to  significantly  mitigate  the  weather-related  strong  decline  of  the
operating earnings in our Salt business segment on the  Group  level  this  year
and are confirming our forecasts for 2012 as a whole", Steiner continues.

Positive development of potash fertilizer demand in the second quarter
After there was still cautious early stocking-up of fertilizers at the start  of
the year, the demand for potash  and  magnesium  products  developed  positively
during the  second  quarter  of  2012.  The  relatively  high  price  level  for
agricultural raw materials offered attractive income prospects for  farmers  and
therefore an incentive to increase yields per hectare also through  the  optimal
use of fertilizers. After the production cuts  by  North  American  and  Russian
producers at the  start  of  the  year,  global  capacities  were  again  almost
completely utilised in the course of the second  quarter.  Moreover,  after  the
conclusion of the potash supply contracts with China at unchanged terms  at  the
end of the first quarter, international prices for potassium chloride tended  to
be firmer and, in the second quarter of 2012, were tangibly above the  level  of
the previous year's quarter.

As expected, early stocking-up in salt sector weak
As a result of the very mild  and  partly  dry  weather  conditions  in  Western
Europe at the start of the year, stocks on both the producer and customer  sides
are well filled. Consequently, in comparison to the same period of the  previous
year, a price decline in the early stocking-up business of  the  second  quarter
of 2012 was observed. While  prices  for  the  tenders  for  the  winter  season
2012/13 decreased, overall volumes in the contracts concluded to date  stood  at
a relatively good level.

The de-icing salt regions on the East Coast of the United States and  in  Canada
were also characterised by relatively high stocks due to the exceptionally  mild
winter at the start of the year. Most producers reacted to this  situation  with
cutting back production. In the de-icing salt  regions  of  the  United  States,
both in the early stocking-up business in the second quarter and in the  tenders
for the winter season 2012/13,  there  were  declines  in  prices  and  volumes,
particularly in the Midwest.

K+S Nitrogen stated as discontinued operation due to its sale
The description of the earnings, financial and asset position  relates,  if  not
stated otherwise, to the continued  operations  of  the  K+S  Group.  Since  the
reporting on the second quarter of 2011, the COMPO business and, with the  Half-
yearly Financial Report H1/12, also K+S Nitrogen are stated as  a  "discontinued
operation" in accordance with IFRS. Detailed information can  be  found  in  the
Notes to the Half-yearly Financial Report on page 33. The income  statement  and
the cash flow statement were adjusted  accordingly.  The  balance  sheet  stayed
unchanged.

Second quarter revenues rise by 21 %
At EUR 996.5 million, second quarter revenues were up EUR 174.8 million or 21  %
 in
comparison to the previous year. This can  be  attributed  in  particular  to  a
volume-related increase in the Potash and Magnesium Products  business  segment.
Revenues in the Salt business segment were slightly up on  the  figure  for  the
previous year due to currency effects. In the first half of the  year,  revenues
of the K+S Group fell  slightly  by  2  %  to  EUR  2,077.1  million  against 
the
background of lower revenues in the Salt business segment in the  first  quarter
due to weather conditions.

In the first six months of the year, 60 % of  revenues  were  generated  in  the
Potash and Magnesium Products business segment, followed by Salt (36 %) and  the
Complementary Business Segments (4 %).  In  Europe,  we  generated  a  share  in
revenues of approximately 40 %, followed by North America (26 %), South  America
(19 %) and Asia (13 %).

Operating earnings in the second quarter above last year's figures
During  the  second  quarter  of  2012,   earnings   before   interest,   taxes,
depreciation and amortisation (EBITDA) rose by 16 % to EUR 275.8  million 
(Q2/11:
EUR 237.0 million). In the  first  half  of  the  year,  EBITDA  reached  EUR 
580.0
million, representing a decrease of 8 % (H1/11: EUR 627.6 million).

In  the  second  quarter  of   2012,   operating   earnings   EBIT   I   reached
EUR 219.8 million and thus increased by EUR 37.9 million or 21 %  in  comparison
 to
the same quarter of the previous year.  At  EUR  56.0  million,  depreciation 
and
amortisation taken into account in EBIT I were at about the level  of  the  same
quarter of the previous year (Q2/11: EUR 55.1 million). The Potash  and 
Magnesium
Products business segment managed  to  significantly  improve  its  earnings  in
particular thanks to higher overseas volumes, while the  earnings  of  the  Salt
business segment decreased against the backdrop of a  weaker  early  stocking-up
business for de-icing salt. In the first half of 2012, the  K+S  Group  achieved
operating earnings of EUR 468.6 million. This was 9 % below  the  previous 
year's
figure  (H1/11:  EUR  516.6  million).  At  EUR  111.4  million,  depreciation  
and
amortisation taken into account in EBIT I in the first half of the year were  at
the level of the same quarter of the previous year (H1/11: EUR 111.0 million).

Adjusted earnings before income taxes improve significantly
Taking into account a weaker financial result due  to   non-cash,  extraordinary
interest expenses for provisions resulting from the  lowering  of  the  discount
factor, adjusted earnings before  income  taxes  for  the  period  under  review
reached EUR 195.6 million and were thus EUR 28.8 million or 17 % higher than a 
year
ago. In the first six months, adjusted  earnings  before  income  taxes  were 
EUR
429.3 million (H1/11: EUR 486.2 million).


Adjusted Group earnings from continued operations up by 17%
In the second quarter, adjusted Group earnings from  continued  operations  rose
by EUR 20.7 million or 17 % to EUR  141.2  million.  Adjusted  Group  earnings 
from
continued operations of the first six months  decreased  in  comparison  to  the
corresponding period of the previous year by EUR 46.8 million or 13 % to  EUR 
310.3
million.



Adjusted earnings per share from continued operations in the second  quarter  at
EUR 0.74 (Q2/11: EUR 0.63)
In the  quarter  under  review,  adjusted  earnings  per  share  from  continued
operations reached EUR 0.74 and were thus about 18 %  above  the  figure  for 
the
same period last year of EUR 0.63. This  was  computed  on  the  basis  of 
191.40
million no-par value shares, being the  average  number  of  shares  outstanding
(Q2/11: 191.32 million no-par value shares). In the first six  months  of  2012,
adjusted earnings  per  share  from  continued  operations  reached  EUR  1.62, 
a
decrease of 13 % after having been EUR 1.87 in the previous year.

Adjusted earnings per share reach EUR 0.79 (Q2/11: EUR 0.15)
Adjusted Group  earnings  (including  discontinued  operations)  in  the  second
quarter reached EUR 150.8 million (Q2/11: EUR 29.2 million). Of this, EUR 9.6 
million
was attributable to the discontinued operations of K+S Nitrogen.  In  the  first
six months, adjusted Group earnings amounted to EUR 344.2 million (H1/11: EUR 
301.1
million), while EUR 33.9 million was attributable to the discontinued 
operations.
Adjusted earnings per share (including discontinued operations) in  the  quarter
under review reached EUR 0.79 (Q2/11: EUR 0.15). Of this, EUR  0.05  was 
attributable
to  the  discontinued  operations.  Adjusted  earnings   per   share   including
discontinued operations of the first six months achieved  EUR  1.80  after 
having
been EUR 1.57 in  the  same  period  of  the  previous  year,  while  EUR  0.18 
was
attributable to the discontinued operations.

Outlook 2012: Revenues expected between EUR 3.9 billion and EUR 4.2 billion
While in the Potash and Magnesium Products business segment,  on  the  basis  of
the currently achieved potash  price  level,  a  moderately  increasing  revenue
development can be  assumed,  in  the  Salt  business  segment,  tangibly  lower
revenues are expected. Revenues of  the  K+S  Group  should  reach  a  value  of
between EUR 3.9 billion and EUR 4.2 billion in financial year 2012  (previous 
year:
EUR 4.0 billion). The revenue forecast assumes an average US dollar exchange 
rate
of 1.22 USD/EUR for the remaining months. This corresponds to an average  annual
rate of 1.26 USD/EUR (previous average annual rate:  1.33  USD/EUR;  2011:  1.39
USD/EUR).

Operating earnings EBIT I should reach between EUR 820 million and EUR 900
million
EBITDA of the K+S Group should reach a figure of EUR  1,050  million  to  EUR 
1,130
million (previous year:  EUR  1,146.0  million)  and  operating  earnings  EBIT 
I
between EUR 820 million and EUR 900 million (previous year:  EUR  906.2 
million).  In
the Potash and Magnesium Products business segment,  slightly  rising  operating
earnings are to be expected (previously: stable). In comparison  to  last  year,
which had benefited from above-average volumes of de-icing salt,  the  operating
earnings of the Salt business segment will probably decline strongly.

Group earnings should be in line with the development of operating earnings
Adjusted Group earnings after taxes from continued operations should be in  line
with the development of operating earnings and reach a value of  between  EUR 
540
million and EUR 600 million in 2012 (previous year: EUR 625.6 million).  This 
would
correspond to adjusted earnings per share from continued operations of  about 
EUR
2.85  to  EUR  3.15  (previous  year:  EUR  3.27).  Taking  into  consideration 
the
discontinued operations including the expected accounting  profit  arising  from
the divestment of K+S Nitrogen, adjusted Group earnings after  taxes  of  EUR 
630
million to EUR 690 million are to be assumed (previously: EUR 581.8  million). 
This
would correspond to adjusted earnings per share  of  about  EUR  3.30  to  EUR 
3.60
(previous year: EUR 3.04).  This  estimate  is  based  not  only  on  the 
effects
described for revenues and operating earnings, but also on:

 - the expectation of consistently attractive agricultural prices;
 -  the  customary,  purely  technical  forecast  policy,  which  maintains  the
   currently achieved potash price level unchanged for the remaining months   of
   2012;
 - a sales volume in the Potash and Magnesium Products business segment at about
   the same level as the previous year (2011: 6.9 million tonnes);
 - a sales volume of crystallised salt of 18 to 19 million  tonnes  (previously:
   less than 19; 2011: 22.7 million tonnes), of which a good  9  million  tonnes
   was de-icing salt (previously: less than 10; 2011: 13.3 million tonnes).  For
   the fourth quarter, this, as customary, assumes the average of multi-year de-
   icing salt sales volumes;
 - a tangibly weaker financial result (previously: stable) particularly  due  to
   non-cash,  extraordinary  interest  expenses  for   provisions   for   mining
   obligations resulting from the lowering of the discount factor;
 - a slightly higher adjusted Group tax ratio of 27% to 28% (2011: 25.7%).

Future dividend policy
K+S is pursuing an essentially  earnings-based  dividend  policy.  According  to
this, a dividend payout ratio of between  40  %  and  50  %  of  adjusted  Group
earnings after taxes (including discontinued operations)  forms  the  basis  for
the amount of future dividend recommendations to be determined by the  Board  of
Executive Directors and the Supervisory Board.  For  2012,  there  are,  on  the
basis of  the  described  earnings  expectations,  opportunities  for  a  higher
dividend  (previous  year:  EUR  1.30),  since  the  accounting  profit  from 
the
divestment of K+S Nitrogen and the cessation of the  adverse  effects  from  the
divestment of the  COMPO  business  should  have  a  positive  impact  on  Group
earnings.



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 14,000 people. The  K+S  share  -
the commodities stock on the German DAX index - is listed on  all  German  stock
exchanges (ISIN: DE000KSAG888, symbol: SDF). More information about K+S  can  be
found at www.k-plus-s.com.



Note to editors
The Half-yearly Financial Report (H1/2012), a video message by Norbert  Steiner,
Chairman of the Board of Executive Directors of  K+S  Aktiengesellschaft,  about
the second quarter of 2012 and up-to-date  press  photos  relating  to  the  K+S
Group are available under http://www.k-plus-s.com/2012h1en.

We are offering a conference call for  analysts  in  English  today  at  3  p.m.
Norbert Steiner, Chairman of the Board of Executive  Directors,  Joachim  Felker
and Dr. Burkhard Lohr, both 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 at (http://www.k-plus-s.com/2012h1en) or by phone under  +49-
69-71044-5598. The conference is being recorded and will also be available as  a
podcast.



Your contact persons:


Press:                            Investor Relations:
Michael Wudonig, CFA              Julia Bock, CFA / Kai Kirchhoff
Phone: +49 561 9301 1262          Phone: +49 561 9301 1009 / 1885
Fax: +49 561 9301 1666            Fax: +49 561 9301 2425
michael.wudonig@k-plus-s.comjulia.bock@k-plus-s.com /
                               kai.kirchhoff@k-plus-s.com



Forward-looking statements


This press release contains facts  and  forecasts  that  relate  to  the  future
develoment 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 develoments 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.


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

Juli Bock, CFA / Kai Kirchhoff
Phone: +49 561 9301-1009 / 1885
Fax: +49 561 9301-2425
julia.bock@k-plus-s.com
kai.kirchhoff@k-plus-s.com

end of announcement                               euro adhoc 
--------------------------------------------------------------------------------


company:     K+S Aktiengesellschaft
             Bertha-von-Suttner-Straße  7
             D-34131 Kassel
phone:       +49 (0)561 9301-1100
FAX:         +49 (0)561 9301-2425
mail:     investor-relations@k-plus-s.com
WWW:      http://www.k-plus-s.com
sector:      Chemicals
ISIN:        DE000KSAG888
indexes:     DAX, Midcap Market Index, CDAX, Classic All Share, HDAX, Prime All
             Share
stockmarkets: regulated dealing: Hannover, Berlin, München, Hamburg, Düsseldorf,
             Stuttgart, regulated dealing/prime standard: Frankfurt 
language:   English
 



Weitere Meldungen: K+S Aktiengesellschaft

Das könnte Sie auch interessieren: