SQM Reports Earnings for 2009
SANTIAGO, Chile, Feb. 25 /PRNewswire-FirstCall/ -- Sociedad Quimica y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A) reported today earnings for the year 2009 of US$327.1 million (US$1.24 per ADR), a decrease of 34.8% with respect to 2008, when earnings totaled US$501.4 million (US$1.91 per ADR). Operating income reached US$441.9 million (30.8% of revenues), 22.4% lower than the US$632.2 million (35.6% of revenues) recorded the previous year. Revenues for 2009 totaled US$1,436.9 million, representing a decrease of 16.0% over the US$1,774.1 million reported in 2008.
Fourth quarter earnings were US$75.4 million (US$0.29 per ADR) compared to the fourth quarter 2008 figure of US$120.3 million (US$0.46 per ADR). Operating income for the fourth quarter reached US$99.9 million, lower than the US$150.8 million recorded for the same period of 2008. Revenues totaled US$387.7 million, compared to the fourth quarter 2008 revenues of US$397.9 million.
Patricio Contesse, SQM's Chief Executive Officer, stated, "The impact of the economic downturn took a toll on volumes in our Specialty Plant Nutrition, Iodine and Lithium business lines. Additionally, average 2009 prices in our fertilizer and lithium businesses were lower than those recorded during 2008. The Company did, however, benefit from higher average iodine prices and significantly higher potash volumes. While the overall results achieved in 2009 were lower than in 2008, net income and revenues recorded for 2009 were the second highest in Company history. In relative terms, SQM also outperformed counterparts in its main businesses and in particular those in the fertilizer industry."
He continued, "Looking forward, we expect 2010 to be a transition year with higher volumes across all of our business lines, with lower average prices in our fertilizer and lithium businesses. The increase in production and sales of potash will continue to be an important driver for SQM's growth in 2010 as it was during 2009. Expansion plans for potash have moved forward according to plan, and for this year we are expecting potassium chloride production to be slightly higher than 1.4 million metric tons compared to the approximately 1.1 million metric tons (potassium chloride and potassium sulfate) produced in 2009. Our future investment plans are in line with this trend, and our total production should reach approximately 1.8 million metric tons during 2012."
Mr. Contesse added, "Under current market conditions it is difficult to predict results for 2010. Although we anticipate that it is likely that potassium-related fertilizer prices will recover at the end of this year, average prices for 2010 should be lower than those recorded in 2009. Lower prices will be partially offset by higher volumes in all of our business lines, and in particular a significant increase in potash volumes.
Mr. Contesse concluded, "We are well positioned to react quickly to market changes in order to rapidly satisfy our customers' needs. We are convinced that the long term drivers are in place in all of our business lines and that the products that we supply will help the world face today's modern challenges: proper potash application will help to improve yields to feed a growing population; our SPN products can be used in modern agricultural techniques that maximize the efficiency of water and soil; our industrial nitrates store energy for continuous, clean electricity production; lithium based technology has made great strides as an efficient means to store and use energy in transportation systems; and new agrochemical applications for iodine will allow farmers to protect both their crops and the environment. I believe that these factors are stronger than ever and will propel the expected future growth of SQM in the coming years."
For the complete version of this press release, please visit our Web site: http://www.sqm.com.
SQM is an integrated producer and distributor of specialty plant nutrients, iodine and lithium. Its products are based on the development of high quality natural resources that allow the Company to be leader in costs, supported by a specialized international network with sales in over 100 countries. SQM's development strategy aims to maintain and strengthen the Company's world leadership in its three core businesses: Specialty Plant Nutrition, Iodine and Lithium.
For further information, contact:
Patricio Vargas, 56-2-4252485 / [email protected]
Mary Laverty, 56-2-4252074 / [email protected]
For media inquiries, contact:
Fernanda Guerra, 56-2-4252027 / [email protected]
Statements in this press release concerning the Company's business outlook, future economic performances, anticipated profitability, revenues, expenses, or other financial items, anticipated cost synergies and product or service line growth, together with other statements that are not historical facts, are "forward-looking statements" as that term is defined under Federal Securities Laws.
Any forward-looking statements are estimates, reflecting the best judgment of SQM based on currently available information and involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. Risks, uncertainties, and factors that could affect the accuracy of such forward-looking statements are identified in the public filing made with the Securities and Exchange Commission, and forward-looking statements should be considered in light of those factors.
SOURCE SQM
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