Tel Aviv-ICL Fertilizers, a segment of Israel Chemicals Ltd., reported operating income of $759.3 million for the third quarter ending Sept. 30, 2008, on sales of $1.44 billion, up from the year-ago $158.3 million and $539 million, respectively. Nine-month operating income was $1.9 billion on sales of $3.74 billion, up from the year-ago $343.8 million and $1.47 billion. In the third quarter, the fertilizer section recorded a non-cash inventory write-down of approximately $40 million to reflect the reduced market value of sulfur inventories. Without the write-down, third-quarter and nine-month operating profits would have been $799.3 million and $1.94 billion, respectively. ICL said it believes the global financial crisis will cause a short-term impact on fertilizer demand and reduce grain inventories. However, it believes depleted grain inventories will lead to a return in demand for fertilizer and higher prices. ICL noted that while several of its potash and phosphate competitors have announced production cuts, ICL has virtually unlimited storage, making it possible to continue production at full rates. ICL-wide net income for the third quarter was $846 million on sales of $2.2 billion, up from the year-ago $160 million and $1.04 billion, respectively. Nine-month net income was $1.9 billion on sales of $5.8 billion, up from the year-ago $380 million and $2.9 billion. ICL declared a $380 million dividend to be paid to shareholders on Dec. 22, 2008. Earlier dividends this year have totaled $588 million. In other news, on Sept. 3, 2008, the board of directors approved the buyback of up to 5 percent of shareholder equity through June 30, 2009. As of Nov. 25, 2008, ICL had bought back 1.25 percent of shares.
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