K+S Group, Kassel, has reported a 26 percent drop in first-quarter EBITDA to €201 million (approximately $217.7 million at current exchange rates) on revenues of €1.1 billion, down from the year-ago €270 million and €1.3 billion, respectively.
Revenues fell 15 percent. The company cited weaker de-icing salt business in Europe and North America as a result of mild weather conditions, as well as lower prices for potash fertilizers as driving the decline.
K+S now expects full-year EBITDA to come in at about €520 million, down from the €500 to €620 million guidance given in mid-March, and versus 2019’s €640 million. The company said the earlier guidance assumed an earlier China contract settlement, than the end-April conclusion, and at a higher price level than agreed. It believes the settlement delay will have an impact on the recovery in potash prices this year.
K+S has cut its 2019 dividend to the legal minimum of €0.04 per share from the previous proposed €0.15 to maintain eligibility for KfW support. A sale agreement signing for the Americas operating unit continues to be expected before the end of 2020.