SANTIAGO, Chile, May 20, 2014 /PRNewswire/ -- Sociedad Quimica y Minera de Chile S.A. ("SQM") (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A) reported today earnings for the three months ended March 31, 2014 of US$81.0 million (US$0.31 per ADR), a decrease from US$151.8 million (US$0.58 per ADR) for the three months ended March 31, 2013. Gross Margin reached US$154.8 million (29.0% of revenues) for the three months ended March 31, 2014; a decrease compared to US$238.9 million (38.3% of revenues) for the three months ended March 31, 2013. Revenues totaled US$534.1 million for the three months ended March 31, 2014, representing a decrease compared to US$623.4 million reported for the three months ended March 31, 2013.
SQM's Chief Executive Officer, Patricio Contesse, stated, "Prices of our major business lines declined compared to the first quarter of 2013. As expected, at the end of 2013 and during the first quarter of 2014, iodine prices fell impacting our results. However, we have been able to increase efficiencies and reduce costs company-wide within this price environment. Our gross profit slightly increased when comparing the first quarter of 2014 to the third and fourth quarters of 2013."
Mr. Contesse continued, "We look forward to a stronger demand in the potash market as well as higher sales volumes in the Potassium and Specialty Plant Nutrition business lines during 2014. We expect to recover some volumes in the lithium business line during 2014. We will continue to manage the company with a focus on the long-term and remain focused on maximizing shareholder value."
For the complete version of this press release, please visit our IR Web site: http://ir.sqm.com/English/investor-relation/default.aspx
About SQM
SQM is an integrated producer and distributor of specialty plant nutrients, iodine, lithium, potassium-related fertilizers and industrial chemicals. Its products are based on the development of high quality natural resources that allow the Company to be a leader in costs, supported by a specialized international network with sales in over 115 countries. SQM's development strategy aims to maintain and strengthen the Company's position in each of its businesses.
The leadership strategy is based on the Company's competitive advantages and on the sustainable growth of the different markets in which it participates. SQM's main competitive advantages in its different businesses include:
- Low production costs based on vast and high quality natural resources;
- Know-how and its own technological developments in its various production processes;
- Logistics infrastructure and high production levels that allow SQM to have low distribution costs;
- High market share in all its core products;
- International sales network with offices in 20 countries and sales in over 115 countries;
- Synergies from the production of multiple products that are obtained from the same two natural resources;
- Continuous new product development according to the specific needs of its different customers;
- Conservative and solid financial position.
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "plan," "believe," "estimate," "expect," "strategy," "should," "will" and similar references to future periods. Examples of forward-looking statements include, among others, statements we make concerning the Company's business outlook, future economic performance, anticipated profitability, revenues, expenses, or other financial items, anticipated cost synergies and product or service line growth.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are estimates that reflect the best judgment of SQM management based on currently available information. Because forward-looking statements relate to the future, they involve a number of risks, uncertainties and other factors that are outside of our control and could cause actual results to differ materially from those stated in such statements. Therefore, you should not rely on any of these forward-looking statements. Readers are referred to the documents filed by SQM with the United States Securities and Exchange Commission, specifically the most recent annual report on Form 20-F, which identifies important risk factors that could cause actual results to differ from those contained in the forward-looking statements. All forward-looking statements are based on information available to SQM on the date hereof and SQM assumes no obligation to update such statements, whether as a result of new information, future developments or otherwise.
SOURCE SQM
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