Santiago-Sociedad Quimica y Minera de Chile S.A. (SQM) reported that net income for the third quarter ending Sept. 30, 2009, was down 43 percent, to $82.3 million ($.31 per ADR) on sales of $383.5 million, compared to the year-ago $190.6 million ($.72 per ADR) and $589.1 million, respectively. Specialty Plant Nutrition (SPN) sales were off 50 percent, to $170.4 million from the year-ago $341.1 million. “Although quarterly earnings are significantly lower than those recorded in the third quarter last year, this decline is overstated given that 3Q08 was the highest quarter ever recorded in company history,” said SQM CEO Patricio Contesse. “Additionally, net income recorded in 3Q09 is 98 percent higher than net income posted in 3Q07, making 3Q09 earnings the second highest third quarter earnings reported.” SQM believes markets have bottomed out across all business lines and are beginning to turn around. Contesse said it is reasonable to expect the prices for all fertilizer products to be lower in 2010 than in 2009; however, the company expects moderately higher volumes for the SPN division and significantly higher potash volumes for next year in line with SQM’s capacity increase. “We believe that by the end of 2010 demand levels for all of our businesses should reach pre-crisis levels and begin to grow at the high growth rates observed before the economic crisis,” said Contesse. He said 2010 will be a transition year that should be followed by a growth period positively influenced by SQM’s increased potash production, as well as higher demand for lithium for battery storage, nitrates for solar energy storage, and the potentially better pricing conditions that should accompany demand growth. SQM reported nine-month net income of $251.7 million ($.96 per ADR) on sales of $1.05 billion, versus the year-ago $381.1 million ($1.45 per ADR) and $1.38 billion. Nine-month SPN revenues were $481.7 million, down from the year-ago $787.5 million.
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