K+S Posts Higher Q3 Earnings, Lifts Full-Year Outlook

German salt and fertilizer company K+S AG

reported a rise in its earnings for the third quarter and lifted its full-year guidance. The company's adjusted after-tax profit gained 6.6% to 76.3 million euros ($94.9 million), compared to EUR71.6 million, in the year-ago period. Its revenue climbed 1.1% to EUR826.9 million from EUR817.7 million. Its operating earnings (EBIT I) rose 16% to 134 million euros ($166.7 million), versus analysts' estimates of 104 million euro. The average per-tonne price of the company's potash products slipped 0.6% y/y to 278.7 euros per tonne in the latest quarter. K+S now expects operating EBIT, including extraordinary effects, of EUR580 million to EUR640 million, versus a prior outlook of EUR490 million to EUR570 million. It now projects revenue of EUR3.7 billion to EUR3.9 billion, compared to EUR3.65 billion to EUR3.85 billion. “A look at the development over the first nine months shows that we are still feeling the effects of the sharp fall in the price of potash in the second half of 2013,” said Norbert Steiner, Chairman of the Executive Board of K+S Aktiengesellschaft. “A slight upwards trend is now evident from the increase in operating earnings in the third quarter. Again pleasing was also the earnings development of our Salt business unit. We are continuing to make good progress with ‘Fit for the Future' and our Legacy project.” K+S shares slipped 1% to close at $13.85 yesterday.