EANS-News: K+S Aktiengesellschaft Successful financial year 2012
K+S Group expects slight increase in revenues and earnings in the current year
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annual result/Company Information
Kassel (euro adhoc) - Kassel, 14 March 2013
Successful financial year 2012
K+S Group expects slight increase in revenues and earnings in the current year
·
At EUR 3.9 billion, 2012 revenues almost on last year's level
· Operating earnings EBIT I of EUR 809 million very close to forecast
· Second best year-end results with Potash and Magnesium Products
· Mild winter adversely affects Salt business
· Divestment of Nitrogen business successfully completed
·
Higher dividend proposal of EUR 1.40 per share intended for 2012
· Forecast for 2013 confirmed: Revenues and operating earnings should
increase slightly
"Overall, 2012 was a successful year for the K+S Group. Our Potash and Magnesium
Products business unit achieved its second best result ever", states Norbert
Steiner, Chairman of the Board of Executive Directors of K+S Aktiengesellschaft,
at the Company's annual results press conference. "For 2012, we will propose to
the Annual General Meeting a 10 cent higher dividend of EUR 1.40 per share",
continues Steiner.
2012 revenues almost at the level of the previous year
At EUR 3.9 billion, revenues for financial year 2012 were almost on the same
level
as the previous year (EUR 4.0 billion). Negative volume effects could almost be
offset by positive currency and price effects. The Potash and Magnesium Products
business unit achieved revenue growth mainly due to higher average prices as
well as the positive development of exchange rates. At 6.95 million tonnes of
goods, the sales volume remained stable in comparison to 2011. Salt business
unit revenues fell tangibly, especially as a result of mild and dry weather
conditions, after having benefited from an above-average winter in the previous
year.
As expected, operating earnings down on previous year
The key performance indicator of the K+S Group, operating earnings EBIT I, fell
in 2012 by around 11 % to EUR 808.5 million (2011: EUR 906.2 million) and was
thus
very close to the most recently submitted forecast of about EUR 820 million. The
forecast figure would have been achieved without the expense of EUR 10.7 million
arising from the disposal of three vessels as part of the fleet-renewal-
programme of the Chilean shipping company Empremar. At 20.5 %, the EBIT margin
was again at a very high level (2011: 22.7 %).
The Potash and Magnesium Products business unit was able to increase its
operating earnings mainly as a result of higher average prices across the
overall product range. These were able to more than compensate cost increases.
With an EBIT I of EUR 773.9 million (+4.7 % against the previous year), the
business unit achieved the second best annual result since 2008. Due to the
weaker de-icing business and the higher proportion of fixed costs customary in
the mining industry, the earnings of the Salt business unit decreased strongly
to EUR 62.4 million (2011: EUR 211.4 million). Cost savings were able to
mitigate
this decrease to some extent.
Lower adjusted Group earnings
Adjusted Group earnings from continued operations fell by EUR 84.8 million or 14
%
to EUR 540.8 million (2011: EUR 625.6 million) and thus mainly followed the
development of operating earnings. This resulted in adjusted earnings per share
from continued operations for the year under review of EUR 2.83, corresponding
to
a decrease of 13 % (2011: EUR 3.27).
Positive effect from divestment of the Nitrogen business
Due to the effect of the divestment of the nitrogen fertilizer segment, adjusted
Group earnings including discontinued operations rose to EUR 639.7 million
(2011:
EUR 581.8 million). These discontinued operations accounted for EUR 98.9
million.
(Detailed information about the divestment of the Nitrogen business can be found
in the Financial Report 2012 in the Notes to the consolidated financial
statements on page 168).
Higher dividend proposal intended for 2012
The adjusted earnings per share of the K+S Group including discontinued
operations, which serve as the basis for the dividend payment, increased to EUR
3.34 due to the effect of this divestment of the Nitrogen business, after having
been EUR 3.04 in the previous year. This places the Board of Executive Directors
and the Supervisory Board in the position to propose to the Annual General
Meeting an increase of the dividend for 2012 by 10 cents to EUR 1.40 per share.
This corresponds to a payout ratio of 42 %.
Fourth quarter 2012: Lower revenues and decreased earnings
The absence of contracts of North American and Russian potash producers to be
concluded with Chinese and Indian customers led to price pressure for
international quotations for potassium chloride from the end of the third
quarter of 2012 also in the markets relevant for K+S. On 31 December 2012, the
North American export organization Canpotex then announced that it had concluded
a new potash supply contract with China for the first half of 2013.
In the fourth quarter, the wintry weather conditions that set in at the end of
November in Western Europe led to an overall average start to the winter season
2012/13. In the United States and in Canada, the winter that began late in
December was, however, not sufficient for the multi-year average sales volumes
to be achieved overall in the fourth quarter.
At EUR 941.6 million, the revenues of the K+S Group in the fourth quarter of
2012
were about 8 % below the figure for the previous year of EUR 1,021.5 million. At
EUR
183.2 million, operating earnings EBIT I remained about 12 % below the level of
the previous year. In the fourth quarter, adjusted Group earnings from continued
operations fell by around 12 % to EUR 131.6 million (Q4/2011: EUR 149.9
million).
K+S Group with attractive prospects
K+S Chairman of the Board of Executive Directors Norbert Steiner anticipates a
positive business development for 2013: "In the Salt business unit, we expect a
tangible recovery for sales volumes, if only because of the wintry weather
conditions at the start of this year. In the Potash and Magnesium Products
business unit, given the important agreements concluded with China and India, we
expect the sales volumes to be at the high level of the previous year once
again, albeit at a lower average price level. All in all, we expect the K+S
Group to achieve a slight increase in revenues and operating earnings. For 2014,
we also see opportunities for a slight increase in revenues and earnings in
comparison to 2013", Steiner continues.
(For further details about the outlook in the Financial Report 2012, see page
139.)
Experience growth
K+S is one of the world's leading suppliers of standard and specialty
fertilizers. In the salt sector, 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 worldwide. 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 Financial Report 2012, the Corporate and Sustainability Report 2012 and the
K+S Q4/12 Facts & Figures are available under www.k-plus-s.com/2012q4en on our
website. Furthermore, a video message by Norbert Steiner, Chairman of the Board
of Executive Directors, about the course of business and from 10 a.m., the talk
by Norbert Steiner, Chairman of the Board of Executive Directors, and Dr.
Burkhard Lohr, member of the Board of Executive Directors, for today's K+S
annual results press conference in Frankfurt am Main will be available there.
An analysts' conference in English will be held today at 1 p.m. also in
Frankfurt
am Main. Norbert Steiner and the members of the Board of Executive Directors,
Dr. Burkhard Lohr and Mark Roberts, will take part in it. Shareholders,
investors, representatives of the press and all other interested parties are
invited to follow the conference via a live webcast at (www.k-plus-s.com/en/
audio-und-video/cc.html)or by phone on +49-69-6677-75757; PIN 3564773#. The
conference is being recorded and will also be available as a podcast.
Your contact persons:
Press:
Michael Wudonig, CFA
Phone: +49 561 9301-1262
Fax: +49 561 9301-1666
michael.wudonig@k-plus-s.com
Investor Relations:
Thorsten Boeckers
Phone: +49 561 9301-1460
Fax: +49 561 9301-2425
thorsten.boeckers@k-plus-s.com
Forward-looking statements
This press release contains information 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 developments and events may deviate from current expectations. Outside
statutory disclosure provisions, the Company does not assume any obligation to
update the statements contained in this press release.
Further inquiry note:
Press:
Michael Wudonig, CFA
Phone: +49 561 9301-1262
Fax: +49 561 9301-1666
michael.wudonig@k-plus-s.com
Investor Relations:
Thorsten Boeckers
Phone: +49 561 9301-1460
Fax: +49 561 9301-2425
thorsten.boeckers@k-plus-s.com
end of announcement euro adhoc
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company: K+S Aktiengesellschaft
Bertha-von-Suttner-Straße 7
D-34131 Kassel
phone: +49 (0)561 9301-1460
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