Kassel, Germany-K+S Group touted its best year in its 100-year history, with operating earnings of E1.34 billion on sales of E4.8 billion for the year ending Dec. 31, 2008. Earnings were up 370 percent and revenues 43.4 percent from 2007’s E285.7 million and E3.34 billion. Fourth-quarter operating earnings were E287.8 million on sales of E955.5 million, up from the year-ago E33.6 million and E893.7 million. Going forward, K+S said it has the right position for important global megatrends, including the growing world population, increased meat consumption, and increased demand for feed and biofuel. For 2009, K+S expects tangibly higher prices with significantly reduced sales, particularly in its potash and magnesium segment. While K+S says income will be off in 2009, it says it is highly probable that revenues will again increase in 2010, with realistic chances of a significant increase in operating earnings. It credits normalization in the potash segment in 2010 for much of this correction. K+S expects a sharper decline in revenues in its COMPO and Fertiva fertilizer units. It expects both lower demand and lower prices. K+S said that it plans to group its COMPO and Fertiva units together as K+S Nitrogen. K+S told analysts that it continues to look at acquisition opportunities, without specifically addressing recent speculation that it is eyeing Compass Minerals or fertilizer assets of DSM.
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