Santiago-Sociedad Quimica y Minera de Chile S.A. (SQM) reported net income of $190.6 million ($.72 per ADR) on sales of $589.1 million for the third quarter ending Sept. 30, 2008, up from the year-ago $41.5 million ($.16 per ADR) and $322.5 million. “We are pleased to announce that SQM has once again achieved record earnings, with net income for the third quarter alone exceeding not only net income for the first six months of this year, but also net income for the full-year 2007,” said Patricio Contesse, SQM CEO. “These results are due in large part to higher prices for our potassium-based fertilizers.” The company also reported improved results from its iodine and lithium segments. “While current world economic conditions have generated uncertainty about the coming months, we are confident in the fundamentals underlying our key markets, where we expect to see growing demand and tight supply conditions.” Third-quarter specialty fertilizer revenues were $341.1 million versus the year-ago $162 million. Nine-month fert revenues were $787.5 million, up from the year-ago $437.1 million. SQM expects 2008 specialty fert sales to be below 2007’s because last year’s sales exceeded production levels. For now, SQM says some customers may opt to delay some of their fertilizer purchases, because farmers have been affected by the tight credit conditions generated by uncertainty in the financial markets. SQM believes any delays should be temporary, since demand for these specialty products remains robust. The company notes that a significant number of these farmers need to achieve export quality standards for fruit and vegetables, and they will use modern agricultural techniques to produce high crop yields. Company-wide, SQM reported nine-month net income of $381.1 million ($1.45 per ADR) on sales of $1.38 billion, versus the year-ago $135.4 million ($.51 per ADR) and $881.3 million. In other news, SQM has announced an interim dividend of $.37994 per share, with amounts of $100 million. The dividend will be charged to net income ending Sept. 30, 2008. The dividend will be paid Nov. 21, 2008, to those registered shareholders during the fifth working day prior to the payment date. SQM’s board of directors has also agreed that the business year 2009 will include an interim dividend. It is to be paid in November 2009, and will not exceed 30 percent of the net profits earned by the company during the first nine months.
Transparency Across the Fertilizer Value-Chain