ICL Fertilizer, a segment of Israel Chemicals Ltd. (ICL), reported a 147.5 percent increase in operating income for the second quarter ending June 30, 2010, to $275.9 million from the year-ago $111.5 million. Sales were up dramatically, to $821.6 million from $465.1 million. ICL reported a four-fold increase in the quantity of potash sold during the quarter, to 1.527 million mt, the second-largest quantity the company has ever sold in a single quarter. ICL noted that during the quarter it began selling significant quantities of potash to customers in China and India under long-term contracts. ICL also reported an increase in phosphate sales.
Six-month income was $508.2 million on sales of $1.59 billion, compared to the year-ago income of $250.3 million on sales of $836.2 million. ICL said phosphate sales doubled, and that Brazil’s import of potash rose dramatically during the first half versus the year-ago period and has continued during the third quarter in anticipation of a strong planting season. ICL also said demand for all fertilizers in Western Europe, particularly potash, has been returning to customary levels seen before the global economic crisis.
ICL said that increased sales were offset somewhat by lower prices for potash and phosphate rock.
Company-wide, ICL reported second-quarter net income of $295.9 million on sales of $1.49 billion, compared to the year-ago income of $152.3 million on sales of $1.08 billion. ICL said the second quarter was the best 2Q in its history with the exception of the 2Q 08, which was a “spike” year throughout the fertilizer industry. Operating income moved up to $384.4 million from the year-ago $190.7 million. ICL said the improvement reflected sharply rising quantities sold across all operating segments and most target markets, indicating the continued strengthening of the recovery that began in the second half of 2009.
Six-month net income was $536.4 million on sales of $2.88 billion, up from the year-ago net income of $311.1 million on sales of $1.98 billion. Operating income was $687.9 million, up from $396.3 million.
On Aug. 23, ICL’s board declared a dividend totaling $177 million to be paid Sept. 20, 2010, in respect to second-quarter results.