Market Overview

ICL Reports Q3 2019 Results

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TEL AVIV, Israel, Nov. 7, 2019 /PRNewswire/ -- ICL (NYSE:ICL) (TASE: ICL), a leading global specialty minerals and specialty chemicals company, today reported its financial results for the third quarter ended September 30, 2019.

Sales for the third quarter were $1,325 million compared to $1,371 million for the same period in 2018. The decrease resulted mainly from the delay in the signing of potash supply contracts in China and India and negative foreign currency impacts. Operating income of $201 million remained stable and adjusted EBITDA of $307 million increased by 4% over Q3 2018. The resilient performance is attributed to the stable business environment in ICL's specialty businesses, as well as cost controls, which offset the negative impact of exchange rates and the commodity market headwinds. The Company's focus on cash generation also led to strong operating cash flow of $368 million, 88% higher than the comparable quarter in 2018.

ICL's President & CEO, Raviv Zoller, stated, "ICL's diversified portfolio, our strong specialty businesses and the focus we continue to place on containing costs and generating cash, are reflected in our solid third quarter and YTD results. Our performance is highlighted by the challenges we overcame this quarter, including the delay in the signing of potash supply contracts and significant headwinds from the commodity business environment, as well as the negative impact from exchange rates following the devaluation of the euro and the Chinese yuan, which harmed our top line, and the strong Israeli shekel, which impacted our costs."

Mr. Zoller added, "In Q3 we continued to execute our strategy and achieved several important milestones. We signed long-term agreements with bromine customers in Asia, which are expected to contribute about $110 million to our revenues beginning in 2021. In addition, we made a breakthrough in the fast-growing meat alternatives market with the signing of several supply agreements, based on our proprietary Rovitaris® technology. This breakthrough is attributed to ICL's unique capabilities in food specialties, which we will continue to leverage for future growth. According to plan, during the fourth quarter, we will be executing a facility upgrade project at our Dead Sea potash facilities, and while this project is expected to negatively impact our potash production and sales volumes in Q4, it will enable us to benefit from improved production and costs next year and beyond. In China, we are on track with our construction of a new pure phosphoric acid plant that will allow us to shift from commodity phosphates to specialty products. I am confident that ICL is well positioned to overcome the challenges we face in the commodity markets and well prepared to benefit from the opportunities that are emerging in our businesses."

FINANCIAL RESULTS



7-9/2019

7-9/2018

1-9/2019

1-9/2018

1-12/2018


$

millions

% of

sales

$

millions

% of

sales

$

millions

% of

sales

$

millions

% of

sales

$

millions

% of

sales












Sales

1,325

-

1,371

-

4,165

-

4,146

-

5,556

-

Gross profit

472

36

458

33

1,481

36

1,347

32

1,854

33

Operating income

201

15

196

14

668

16

1,353

33

1,519

27

Adjusted operating income (1)

201

15

200

15

672

16

539

13

753

14

Net income - shareholders of
the Company

130

10

129

9

427

10

1,158

28

1,240

22

Adjusted net income -
shareholders of the Company
(1)

130

10

134

10

431

10

353

9

477

9

Diluted EPS ($)

0.10

-

0.10

-

0.33

-

0.91

-

0.97

-

Diluted adjusted EPS ($) (2)

0.10

-

0.10

-

0.34

-

0.28

-

0.37

-

Adjusted EBITDA (2)

307

23

295

22

997

24

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