Germany’s K+S Group reported a 55.3 percent increase in potash/magnesium operating profits for the first quarter ending March 31, 2010, to €150.6 million (US$188.1 million) on sales of €498.4 million (US$622.6 million), versus the year-ago €97 million (US$121.2 million) on sales of €366 million (US$457.3 million). Sales volumes for the unit were up over 1 million mt, to 1.94 million mt from the year-ago 900,000 mt. Average prices, however, dropped to €256.2/mt (US$320.1/mt) from €409.2/mt (US$511.4/mt).
Buoyed by the increase, K+S is increasing its projections for total global potash sales of 2010 to 45-50 million mt, from its previous forecast of about 45 million mt. It put 2009 at 32 million mt.
Chairman and CEO Norbert Steiner told analysts that while international potash prices in the first quarter had likely bottomed out, “we are too far from scarcity and therefore do not expect significant price hikes in the near future.”
Nitrogen operating earnings were up 79 percent, to €14.5 million (US$18.1 million) on sales of €385.5 million (US$481.7 million), versus the year-ago €8.1 million (US$10.1 million) on sales of €342.1 million (US$427.4 million).
Company-wide net income was €172.5 million (US$215.5 million) on sales of €1.53 billion (US$1.91 billion), up from the year-ago €107.4 million (US$134.2 million) and €1.01 billion (US$1.26 billion).