Tel Aviv-Israel Chemicals Ltd. (ICL) reported record results for the year ending Dec. 31, 2008, with net income of $2 billion on sales of $6.9 billion, compared to 2007’s $553.4 million and $4.1 billion, respectively. Bowing to the global financial crisis, fourth-quarter results were not as stellar, with net income of $175.8 million on sales of $1.12 billion, versus the year-ago $173.4 million and $1.2 billion. Fourth-quarter adjusted income was $279.1 million, excluding one-time charges that included an adjustment in sulfur inventories from $800 per ton to below $100 per ton. ICL Fertilizers reported 2008 operating income of $2.02 billion on sales of $4.25 billion, versus 2007’s $527.4 million and $2.15 billion, respectively. Fourth-quarter fertilizer income and sales were down to $120.4 million and $508.8 million, respectively, from the year-ago $183.6 million and $676.2 million. ICL said 2008 results reflected steep price increases and strong demand for potash, fertilizers, and additional products. Fourth-quarter results were impacted by the global economic conditions, but prices still remained above year-ago levels. ICL stressed that medium- and long-term fundamentals remain good, and said that any near-term reduction in fertilizer purchases will lead to further depletion of world grain inventories, which is expected to lead to price increases for grains, and later for fertilizer. To weather the current economic storm, ICL said it would institute cost saving and efficiency programs, including the optimization of manufacturing plans, the adjustment of inventory levels, the prioritization of investment programs, and the institution of salary cuts. ICL stressed that its virtually unlimited storage capacity enables it to stockpile potash and continue with normal production levels.
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