Santiago-Sociedad Quimica y Minera de Chile S.A. (SQM) reported a 33.9 percent drop in second-quarter net income, to $83.1 million ($.32 per ADR) on sales of $344.8 million, compared to the year-ago $125.7 million ($.48 per ADR) and $460.8 million, respectively. Special Plant Nutrients, SQM’s largest business, saw a sales drop to $165.6 million from the year-ago $275.9 million. SQM six-month net income was $169.5 million ($.64 per ADR) on sales of $665.7 million, versus the year-ago $190.5 million ($.72 per ADR) and $787.1 million. Six-month SPN sales were $311.3 million, down from $446.4 million. SQM said the first half was challenging, with important reductions in sales volumes consistent with the prevailing global economic conditions and uncertainty over potash prices. However, it said sales volumes in different industries in which it participates have started to recover, and SQM believes volumes for the second half will be greater than those of the first. “We are already seeing signs of recovery in our Specialty Plant Nutrition business line, and we believe that demand in general has reached a turning point,” said Patricio Contesse, SQM CEO. In the meantime, he said SQM continues to move forward with its expansion plans, which will allow it to double sales volumes of potash in 2010.
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