EANS-Adhoc: K+S Aktiengesellschaft
Extraordinary weak demand for potash
fertilizers continues
Clear reduction in expectations for 2009 sales volumes /
Additional production curtailment in H2
European prices reduced in line with
the situation on ove
-------------------------------------------------------------------------------- ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------------
17.06.2009
European agriculture exercised great restraint in the use of potash fertilizers in the spring. Despite the stabilisation of agricultural prices, the demand for fertilizers thus remained very low in Q2 as well. Given the autumn fertilization due in several weeks time too, there is still no sign of any significant upturn in demand in Europe. Until now, K+S expected that the demand for potash and magnesium fertilizers would normalise in the second half of the year and that total sales would be just under 6 million tonnes of goods.
However, in view of the extraordinarily weak sales, K+S has reduced its sales expectations for 2009 to 4.0 to 4.5 million tonnes. Therefore, it has been decided to reduce potash production in the second half of the year by up to 2 million tonnes, following a reduction of 2 million tonnes already implemented in the first half of the year.
Moreover, it has in the meantime been noted on major overseas markets that a price of potassium chloride of USD 735 - 750 per tonne is currently unsustainable for large quantities. The indications rather point to a lower price level. In view of this situation and the upcoming autumn fertilization, K+S KALI GmbH implemented a corresponding reduction in the price of one tonne of granulated potassium chloride in Europe today, lowering it from EUR 555 to EUR 435.
K+S has already forecast a tangible fall in revenues and a significant fall in earnings for 2009. In view of these developments, further significant reductions in revenues and earnings are to be expected in the current financial year. As usual, a quantitative forecast of revenues and earnings will appear with the release of the half-yearly figures on 13 August.
end of announcement euro adhoc --------------------------------------------------------------------------------
Further inquiry note:
Christian Herrmann
Telefon: +49 561 9301-1460
christian.herrmann@k-plus-s.com
Branche: Chemicals
ISIN: DE0007162000
WKN: 716200
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Original content of: K+S Aktiengesellschaft, transmitted by news aktuell