Israel Chemicals Ltd. reported a drop in revenues due to a strike at two of the company’s subsidiaries, while net profits actually rose largely a result of the sale of assets. Revenues were down by 13 percent totaling $1.4 billion versus $1.6 billion in the corresponding quarter a year ago. Net profits totaled $217 million in the first quarter of 2015 versus $131 million in Q1 of 2014. ICL said that the $154 million after tax gain from divestitures more than offset the strike’s impact of $76 million.
ICL estimated that following the end of the strike it will recover most of the delayed potash sales and production in the future due to excess production capacity at its potash plants. The company noted that evaporation activities at the Dead Sea ponds were not interrupted by the strike at Dead Sea Works. Workers at Dead Sea Works and Dead Sea Bromine Compounds have been on strike since February.
Potash sales during the first quarter fell to $377 million versus $491 million in the corresponding quarter last year. This had a sharp impact on operating profits which fell to $92 million versus $146 million in the corresponding quarter.
Fertilizer and phosphate rock sales fell slightly as a result of the weaker euro and totaled $452 million versus $465 million in the first quarter of 2014. However operating profit rose to $45 million from $30 million. The impact of the weaker euro was partially offset by higher fertilizer prices compared to the first quarter of 2014 and increased volumes.