KASSEL (dpa-AFX) - German specialty fertilizer supplier K+S Group (SDFG) Thursday reported about 45 percent drop in operating earnings or EBIT for the fourth quarter, as international prices, particularly for potassium chloride came under pressure. Revenues, however, increased about 4 percent from last year.
Looking ahead to full year 2014, the company expects revenues to be moderately lower and EBIT to be down significantly due to price factors. Revenues for 2013 were 3.95 billion euros, and EBIT totaled 655.9 million euros.
For the fourth quarter, operating earnings or EBIT dropped 45.3 percent to 99.6 million euros from 182.0 million euros last year. The company has adjusted its prior-year results.
Group earnings, adjusted, totaled 67.1 million euros, compared with 130.2 million euros a year ago. Adjusted earnings per share were 0.35 euros, while it had reported 0.68 euros per share last year.
Financial result for the quarter was a loss of 19.5 million euros, wider than 18.0 million euros last year.
However, quarterly revenues increased 3.9 percent to 977.9 million euros from 941.6 million euros in the same quarter last year.
The price trend in Potash and Magnesium Products business unit, resulted in revenues decline of 11 percent. However, sales volumes remained stable at 6.94 million tonnes. Revenues from Salt business unit climbed 18 percent, mainly due to positive volume development in the de-icing salt business.
At the company's annual results press conference Norbert Steiner, chairman of the board of executive directors said, 'The year 2013 was associated with great challenges for the K+S Group.'
The company is seeking to cut costs by a total of 500 million euros by 2016, and expects to reduce costs by 150 million euros in 2014.
For full-year 2014, the company expects adjusted Group earnings after taxes and operating earnings EBIT to be significantly lower than the previous year. Revenues of the K+S Group for financial year 2014 are anticipated to be moderately below the prior-year figure.
For 2014, the company expects sales volume for Potash and Magnesium Products business unit to remain unchanged from last year, and average prices to be tangibly lower than the preceding year.
Salt business volumes are also expected to be about the same level as in 2013, and prices to be partly lower.
The stock closed Wednesday's trading at 24.52 euros.
Copyright RTT News/dpa-AFX