|By PR Newswire||
|November 21, 2012 02:02 AM EST||
TEL AVIV, Israel, November 21, 2012 /PRNewswire/ --
- ICL's Leading Market Positions & Balanced Portfolio Continue to Counterbalance External Headwinds
- Q3'12 Revenues Down $9M Compared with Q3'11 Before Exchange Rate Fluctuations, Which Accounted for $72M
- In Contrast to Low Demand in World Potash Markets, ICL Fertilizers' Q3 Potash Shipments Were Similar to Their Level in Q3'11
- Weak Global Economic Environment Impacting ICL-IP & ICL-PP Less Than In Previous Cycles
ICL (TASE:ICL), a multinational fertilizer and specialty chemicals company, today reported its financial results for the third quarter ended September 30, 2012.
Mr. Stefan Borgas, ICL's CEO since September 20, 2012, commented: "Despite the challenging global economic environment, ICL continues to demonstrate resilience due to its numerous leading market positions and a balanced portfolio that counterbalances low economic growth. The products that we manufacture for the agriculture, food, water and materials markets are an answer to the essential, fundamental requirements of the world's growing population. ICL develops products and processes that will enable it to grow and strengthen the contribution that it makes to consumers in these critical areas."
Revenues: ICL's revenues for the third quarter of 2012 totaled $1,817.5 million, an $81 million decline compared with $1,898.3 million in the third quarter of 2011. The decrease was due primarily to the impact of unfavorable exchange rate fluctuations, which accounted for approximately $72 million of the difference. The Company's revenues during the quarter were enhanced by the consolidation of companies acquired during the past 12 months.
For the nine-month period, sales totaled $5,334.2 million compared with $5,355.5 million in the first nine months of 2011, a decline of approximately $21 million. Excluding the impact of unfavorable exchange rate fluctuations (primarily the Euro/dollar exchange rate), which reduced revenues by approximately $155 million, the Company's sales for the quarter would have risen by $134 million for the nine-month period. This reflected the rise of prices, on average, and the stable quantities sold, coupled with the contribution of newly-consolidated companies acquired during the past 12 months.
Gross profit: Gross profit for the third quarter totaled $786.0 million compared with $871.4 million in the third quarter of 2011. The decline reflected the period's lower sales, coupled with the impact of increased raw material, energy and other costs. Gross margin for the period was 43.2% compared with 45.9% for the third quarter of 2011.
For the nine-month period, gross profit totaled $2,250.1 million, a 5% decline compared with $2,380.2 million in the first nine months of 2011. Gross margin for the period was 42.2% compared with 44.4% for the first nine months of 2011.
Operating income: Operating income for the third quarter of 2012 was $487.9 million compared with $556.2 million for the third quarter of 2011. For the nine-month period, operating income totaled $1,382.5 million, a 5% decline compared with $1,459.5 million in the first nine months of 2011. The decrease derived from the reduction in the gross margin, countered partially by reduced sales, marketing and administrative expenses.
Net income: Net income to shareholders for the third quarter of 2012 totaled $394.8 million compared with $436.3 million in the parallel period of 2011. For the nine-month period, net income to shareholders totaled $1,091.0 million compared with $1,142.2 million in the first nine months of 2011.
Cash flow: During the third quarter of 2012, operating cash flow totaled $680.1 million, a 36% increase compared with $498.8 million in the third quarter of 2011. For the nine-month period, cash flow totaled $1,317.7 million, an increase of 42% compared with $925.0 million for the first nine months of 2011.
- The continued decline of global grain stock-to-use ratios to historically low levels, as predicted by the U.S. Department of Agriculture, and other indicators point to a market environment that will support strong sales of fertilizers in the 2013 planting season.
- The completion of potash deliveries under the framework of existing contracts signed with customers in India and China, coupled with the delay of new contract renewals with these customers, is expected to reduce potash shipments during the fourth quarter as compared with the fourth quarter of 2011.
- ICL continues manufacturing potash at its normal rate, benefiting from its strategic ability to store very large quantities of potash outdoors.
- Due to the decrease in demand for flame retardants during the third quarter, production was halted at one of ICL Industrial Products' production units. This shutdown is expected to continue into the fourth quarter.
- Due to the seasonality of ICL Performance Products' sales of some of its products, especially its fire safety products, and the general holiday-related slowdown of sales in December, the fourth quarter is generally characterized by lower profit margins.
Highlights of Core Business Segments
- ICL Fertilizers: The segment's sales for the third quarter of 2012 totaled $1.1 billion, representing 55.7% of total revenues (before offsets of inter-segment sales), a decline of approximately 5% compared with Q3 2011. This moderate decline during a period of low overall potash demand reflected primarily the impact of unfavorable exchange rate fluctuations, as explained above, and the segment's strong potash sales to Indian and Brazilian customers during the quarter, which compensated for weak sales to customers in China and other markets. During the third quarter and also in October 2012, the Company's potash deliveries to India that had been called for under the framework of supply agreements signed during the second half of 2011 (but that had been delayed beyond the original agreed-upon dates) were completed.
Despite declining world sales of potash during the quarter, the segment sold 1,390 thousand tons of potash (including internal sales) during the third quarter of 2012, a quantity that was almost unchanged from that sold during the third quarter of 2011. However, the completion of existing contracts coupled with delayed renewals of contracts in India and China is expected to reduce the Company's Q4 2012 potash shipments as compared with Q4 2011. The quantity of phosphate fertilizers sold during Q3 2012 totaled 458 thousand tons compared with 456 tons in Q3 2011.
For the nine-month period, sales totaled $3.1 billion, representing 55.1% of total revenues (before offsets of inter-segment sales), a 1% increase compared with the first nine months of 2011. The increase derived from a rise in the segment's prices, on average, during the year, together with the consolidation, for the first time, of companies acquired during the past 12 months. This was countered partially by unfavorable fluctuations of key exchange rates, as explained above, and reduced quantities sold during the period. During the period, the Company sold 3,821 thousand tons of potash (including internal sales) and 1,298 thousand tons of phosphate fertilizers.
ICL Fertilizers' operating income for the third quarter of 2012 totaled $367 million, representing an operating margin of 34%. For the nine-month period, operating income totaled $1,019 million, representing an operating margin of 33%.
Fertilizer market trends: World potash markets during Q3 2012 exhibited low demand as compared with Q3 2011. This decline derived primarily from delays in the renewal of potash supply agreements with China and India, Europe's ongoing financial crisis and droughts in North America. In contrast, Brazil exhibited strong demand for potash, with the total quantities imported during the first nine months of 2012 nearly reaching the record levels recorded in 2011.
In India, demand for phosphate fertilizers has begun to decline due to reduced government subsidies, which result in increased fertilizer prices to the end-user, together with the devaluation of the Indian rupee as compared with the U.S. dollar, and the delay of the monsoon season. During the last several weeks, the rainy season has begun, resulting in an increase in fertilizer demand and a stabilization of the market.
In October 2012, the US Department of Agriculture published its 2012/13 Agricultural Outlook, and once again reduced its forecast regarding the quantity of crops expected to be harvested due to the year's hot and dry weather, the severe draught in U.S. growing regions and dryer-than-normal weather in Russia, the Ukraine and Kazhakstan. These developments have led to continued rises in the prices of corn, wheat and soy and a further decline in grain stock-to-use ratios, developments that are expected to improve demand for fertilizer in the next agricultural season. According to the report, the global grain stock-to-use ratio is forecast to decline to 18.5% at the end of the 2012/2013 agricultural season, compared with 20.48% at the end of the 2011/12 season and 20.7% at the end of the 2010/11 season.
- ICL Industrial Products: The segment's sales for the third quarter of 2012 totaled $347 million, representing 18.1% of total revenues (before offsets of inter-segment sales), compared with $381 million for the third quarter of 2011. The decline reflected lower quantities sold coupled with unfavorable fluctuations in exchange rates, countered partially by increased selling prices. For the nine-month period, sales totaled $1,110 million, a 6% decrease compared with the first nine months of 2011.
The segment's operating income for the third quarter of 2012 totaled $59 million compared with $76 million for the third quarter of 2011. The decrease in operating income derived from the reduced quantities sold, coupled with higher raw material and energy costs and unfavorable exchange rate fluctuations. For the first nine months of 2012, operating income totaled $204 million compared with $234 million in the parallel period of 2011.
Market developments: During the past year, the economic slowdown throughout the world and especially in China has led to reduced demand for the brominated flame retardants that are used in electronics and products for the building industry. In parallel, China's demand for elemental bromine has declined, leading to reduced selling prices there.
In contrast, demand for drilling fluids has been rising throughout 2012 due to an increase in the deep-water gas and oil exploration activities in the Gulf of Mexico.
- ICL Performance Products: The segment's sales for the third quarter of 2012 totaled $416 million, representing 21.7% of total revenues (before offsets of inter-segment sales), a 3% increase compared with $403 million for the third quarter of 2011. The increase reflects higher quantities sold, coupled with the consolidation, for the first time, of companies that were acquired during the past 12 months. The increase was countered partially by the negative impact of exchange rate fluctuations, especially the Euro vs. the U.S. dollar. For the nine-month period, sales totaled $1,137 million, a 2% decrease compared with the first nine months of 2011.
The segment's operating income for the quarter totaled $60 million, a 13% increase compared with $53 million in the third quarter of 2011. The increase derived from the increased sales, countered partially by the increased costs of raw materials and energy. For the first nine months of 2012, operating income totaled $148 million compared with $166 million in the parallel period of 2011.
Market developments: During the third quarter, the trends that characterized the global market throughout the year, including the lack of certainty regarding global economic stability, political instability in the Middle East, the slow recovery of markets in the U.S., continued to affect markets for the majority of products that use the segment's offerings. In addition, the slowdown of fertilizer markets, whose by-products are raw materials for the segment's products, increased the price of the segment's inputs, primarily in Europe. However, prices of these components in the U.S. remained stable.
- On April 30, 2012, the Company paid a dividend totaling $260 million in respect of its fourth quarter 2011 results. This brought the total dividend paid in respect of 2011 results to $1,053 million.
- On June 26, 2012, the Company paid a dividend totaling $200 million in respect of its first quarter 2011 results.
- On September 12, 2012, the Company paid a dividend totaling $285 million in respect of its second quarter 2012 results.
- The Company's Board of Directors today declared that a dividend totaling $276 million will be paid on December 19, 2012 in respect of its third quarter 2012 results.
ICL is one of the world's leading fertilizer and specialty chemicals companies. For a world challenged by population growth and scarce resources, ICL makes products that increase global food and water supplies and improve industrial materials and processes.
ICL produces approximately a third of the world's bromine and is the 6th largest potash producer in the world. ICL is a leading supplier of fertilizers in Europe and a major player in specialty fertilizer market segments. One of the world's most integrated manufacturers and suppliers of phosphate products, ICL has become the world's leading provider of pure phosphoric acid and a major specialty phosphate player.
ICL is comprised of three core segments: ICL Fertilizers, ICL Industrial Products and ICL Performance Products. Its major production activities are located in Israel, Europe, the US, South America and China, and are supported by major global marketing and logistics networks. ICL extracts potash, bromine, magnesium chloride and sodium chloride from Israel's Dead Sea, mines phosphate rock from Israel's Negev Desert, and mines potash and salt in Spain and the UK.
ICL's shares are traded on the Tel Aviv Stock Exchange (TASE: ICL).
Forward Looking Statement
This press release contains forward-looking assessments and judgments regarding macro-economic conditions and the Group's markets, and there is no certainty as to whether, when and/or at what rate these projections will materialize. Management's projections are likely to change in light of market fluctuations, especially in ICL's manufacturing locations and target markets. In addition, ICL is likely to be affected by changes in the demand and price environment for its products as well as the cost of shipping and energy, whether caused by actions of governments, manufacturers or consumers. ICL can also be affected by changes in the capital markets, including fluctuations in currency exchange rates, credit availability, interest rates, etc.
PRINCIPAL FINANCIAL RESULTS
THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2012
3 months ended September 9 months ended September 30, 30, 2012 2011 2012 2011 $ % of $ % of $ % of $ % of millions sales millions sales millions sales millions sales Net Sales 1,817.5 100.0 1,898.3 100.0 5,334.2 100.0 5,355.5 100.0 Gross profit 786.0 43.2 871.4 45.9 2,250.1 42.2 2,380.2 44.4 Operating income 487.9 26.8 556.2 29.3 1,382.5 25.9 1,459.5 27.3 Pre-tax income 477.1 26.3 542.6 28.6 1,330.2 24.9 1,410.2 26.3 Net income to the Company's shareholders 394.8 21.7 436.3 23.0 1,091.0 20.5 1,142.2 21.3 EBITDA* 561.7 30.9 631.8 33.3 1,595.5 29.9 1,661.6 31.0 Operating cash flow 680.1 498.8 1,317.7 925.0 Investment in property, plant and equipment less grants received 192.2 156.4 522.0 360.8
* EBITDA is calculated as follows:
3 months ended Sept. 30, 9 months ended Sept. 30, 2012 2011 2012 2011 Net income 394.8 436.3 1,091.0 1,142.2 Amortization & depreciation 72.4 75.1 210.3 197.7 Financing expenses, net 13.4 16.3 59.4 60.5 Taxes on income 81.0 104.1 234.8 261.2 Unusual or one-time expenses EBITDA 561.7 631.7 1,595.5 1,661.6
PRINCIPAL RESULTS FROM CORE
THREE MONTHS AND NINE MONTHS ENDED
SEPTEMBER 30, 2012
3 months ended September 9 months ended September 30, 30, 2012 2011 2012 2011 % of % of % of % of Sales CIF by $ gross $ gross $ gross $ gross segment millions sales millions sales millions sales millions sales ICL Fertilizers 1,066.3 55.7 1,126.0 56.1 3,102.4 55.1 3,063.5 54.3 ICL Industrial Products 346.6 18.1 380.7 19.0 1,110.2 19.7 1,178.0 20.9 ICL Performance Products 415.7 21.7 403.1 20.1 1,137.3 20.2 1,161.5 20.6 Other and offsets (11.1) (11.5) (15.7) (47.5) Total 1,817.5 1,898.3 5,334.2 5,355.5
Note: Segment sales data and their percentage of total sales are before offsets of inter-segment sales.
3 months ended September 30, 9 months ended September 30, 2012 2011 2012 2011 Operating % of % of % of % of income by $ segment $ segment $ segment $ segment segment millions sales millions sales millions sales millions sales ICL Fertilizers 366.9 37.0 416.3 37.0 1,018.9 33.9 1,038.8 33.9 ICL Industrial Products 58.6 19.9 75.9 19.9 203.6 19.9 234.2 19.9 ICL Performance Products 59.9 13.1 52.9 13.1 147.9 14.3 166.0 14.3 Other and offsets 2.5 11.1 12.1 20.5 Total 487.9 556.2 1,382.5 1,459.5
Fleisher Communications and Public Relations
SOURCE ICL - Israel Chemicals Ltd
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...
May. 25, 2016 04:45 AM EDT Reads: 2,416
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
May. 25, 2016 04:45 AM EDT Reads: 777
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
May. 25, 2016 04:15 AM EDT Reads: 3,032
Korean Broadcasting System (KBS) will feature the upcoming 18th Cloud Expo | @ThingsExpo in a New York news documentary about the "New IT for the Future." The documentary will cover how big companies are transmitting or adopting the new IT for the future and will be filmed on the expo floor between June 7-June 9, 2016, at the Javits Center in New York City, New York. KBS has long been a leader in the development of the broadcasting culture of Korea. As the key public service broadcaster of Korea...
May. 25, 2016 04:00 AM EDT Reads: 1,687
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
May. 25, 2016 04:00 AM EDT Reads: 1,036
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
May. 25, 2016 02:00 AM EDT Reads: 1,111
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
May. 24, 2016 11:45 PM EDT Reads: 785
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
May. 24, 2016 11:30 PM EDT Reads: 1,086
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
May. 24, 2016 06:00 PM EDT Reads: 4,655
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit y...
May. 24, 2016 05:00 PM EDT Reads: 1,852
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will discuss the vast to...
May. 24, 2016 04:00 PM EDT Reads: 2,359
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
May. 24, 2016 04:00 PM EDT Reads: 1,685
SYS-CON Events announced today that Enzu, a leading provider of cloud hosting solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to foc...
May. 24, 2016 02:15 PM EDT Reads: 2,084
SYS-CON Events announced today the How to Create Angular 2 Clients for the Cloud Workshop, being held June 7, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified. Now it’s a component-based well-performing framework. The immersive one-day workshop led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and...
May. 24, 2016 02:00 PM EDT Reads: 3,857
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...
May. 24, 2016 01:45 PM EDT Reads: 1,377
IoT generates lots of temporal data. But how do you unlock its value? How do you coordinate the diverse moving parts that must come together when developing your IoT product? What are the key challenges addressed by Data as a Service? How does cloud computing underlie and connect the notions of Digital and DevOps What is the impact of the API economy? What is the business imperative for Cognitive Computing? Get all these questions and hundreds more like them answered at the 18th Cloud Expo...
May. 24, 2016 01:45 PM EDT Reads: 2,067
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...
May. 24, 2016 01:30 PM EDT Reads: 1,760
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
May. 24, 2016 10:30 AM EDT Reads: 771
SYS-CON Events announced today that 24Notion has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. 24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to con...
May. 24, 2016 09:30 AM EDT Reads: 1,688
The demand for organizations to expand their infrastructure to multiple IT environments like the cloud, on-premise, mobile, bring your own device (BYOD) and the Internet of Things (IoT) continues to grow. As this hybrid infrastructure increases, the challenge to monitor the security of these systems increases in volume and complexity. In his session at 18th Cloud Expo, Stephen Coty, Chief Security Evangelist at Alert Logic, will show how properly configured and managed security architecture can...
May. 24, 2016 09:00 AM EDT Reads: 1,971