German salt, fertilizer company Kali+Salz’s Q4 net income falls 93 pct to $22 million

Kali+Salz’ Q4 net income falls 93 pct to $22M

FRANKFURT — German salt and fertilizer company Kali+Salz AG said Thursday that its fourth-quarter net income plunged 93 percent to euro16 million ($22 million) as the downturn significantly affected demand in global agricultural markets.

The Kassel-based company earned euro227 million in net income in the fourth quarter of 2008.

Despite the drop, revenue in the October-December period rose 11 percent to euro1.1 billion from euro956 million a year earlier.

The increase was the result of improved road salt sales because of harsh winter weather and the first-time inclusion of Morton Salt which contributed nearly euro10 million in sales, the company said.

K+S is one of the world’s largest salt and fertilizer companies. Last year, it acquired Chicago-based Morton Salt.

For the year, K+S earned euro97 million in net income compared with euro871 million in 2008, a decline of 89 percent.

Revenue for 2009 fell more than 25 percent to euro3.6 billion from euro4.8 billion in 2008.

The company said for the full year, potash and magnesium product sales declined more than 40 percent to euro1.4 billion. Meanwhile, nitrogen fertilizer sales fell 39 percent to euro1 billion.

Salt sales increased 64 percent to euro1 billion. In addition to the Morton Salt inclusion, particularly the first and fourth quarters experienced strong road salt sales because of hard winter conditions.

Still, fertilizer demand is picking up tangibly after falling steeply last year. As a result, full-year revenue should rise considerably, K+S said.

Morton Salt will also have a positive effect on the top line for the full year. Full year operating earnings should rise “significantly,” but K+S wasn’t more specific except for noting sales tonnages would increase.

The company’s 2009 operating earnings measured as earnings before interest and taxes fell 82 percent to euro238 million from euro1.3 billion in 2008.

Shares of K+S were about a fifth of a percent higher at euro47 in Frankfurt morning trading.

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