Jul 15, 2005
Yara reports for the second quarter a net income after minority interest of NOK 846 million (NOK 2.68 per share), compared with NOK 800 million (NOK 2.50 per share) in the second quarter last year. Excluding net foreign exchange gain/losses, the result was approximately NOK 3.18 per share compared with NOK 2.53 per share in second quarter 2004. Second quarter operating income was NOK 1,117 million compared with NOK 912 million in the same quarter last year. EBITDA for the quarter was NOK 1,868 million compared with NOK 1,484 million in the second quarter last year.
"The second quarter results continued the strong development for Yara. Both high demand and good production levels in Yara's plants were important contributors," says Thorleif Enger, President and CEO of Yara International ASA. "While the total European market volume was down for the season, we continued to capture market share from imports. Over time a gradual decline in the mature European fertilizer market is expected, and Yara will counter this trend with a further strengthening of the fertilizer position as well as shifting some products to higher margin applications. One example is AdBlue for reduction of truck emissions, a product which we already distribute through more than 90 locations across Europe," says Mr. Enger.
Global fertilizer consumption is estimated to have increased by 5% in 2004, driven by low grain stocks and improved grain prices early in the year, and generally favorable weather conditions. In addition, strong economic growth has stimulated demand for meat and vegetables, bio-fuels and industrial nitrogen consumption. The positive demand developments in 2004 have continued into 2005. Particularly in Asia, demand has been robust. But due to drought in several places, including Brazil, Australia and South East Asia, fertilizer demand in these regions could be somewhat lower than in the previous year. This may have a negative impact on short-term fertilizer consumption, but reduced crops and grain inventories may increase fertilizer demand in the medium term.
For further information
Egil Hogna, Investor Relations
Telephone (+47) 24 15 71 66
Cellular (+47) 90 187 865
Arne Cartridge, Media Relations
Telephone (+47) 24 15 73 01
Cellular (+47) 47 900 900
Yara International ASA is the world's leading supplier of mineral fertilizers with particular strength in nitrogen-based fertilizers. Yara has a local presence in 50 countries worldwide. Yara sells more than 20 million tonnes of mineral fertilizers in more than 120 countries. Yara offers fertilizers meeting the nutrient needs of local crops supported by agronomic advice to make farming more profitable and agriculture more sustainable. Yara has a strong position in industrial markets in Europe as a supplier of nitrogen-based chemicals and is the leading supplier of liquid CO2.www.yara.com