Apr 28, 2009
Yara reports first-quarter net income after minority interest of NOK 887 million (NOK 3.06 per share), compared with NOK 2,808 million (NOK 9.63 per share) last year. Excluding net foreign exchange gains/losses and special items, the result was approximately NOK 2.81 per share compared with NOK 9.20 per share in first quarter 2008. First-quarter operating income was NOK 1,194 million compared with NOK 2,860 million last year. EBITDA for the quarter was NOK 2,036 million compared with NOK 3,988 million in first quarter 2008.
"Yara's first-quarter fertilizer sales were up significantly from the fourth quarter, and the pace of sales increased during the quarter. By the end of the quarter deliveries were running closer to last year and Yara defended its market share in Europe, even as imports increased. Our strong cash flow generation is the result of competing well for deliveries to customers, cutting production and thereby reducing inventories", said Jørgen Ole Haslestad, President and Chief Executive Officer of Yara.
"The current lags in fertilizer deliveries point to a material drop in fertilizer application rates with negative effects on global food production. Yara is well positioned to benefit from the recovery in fertilizer demand when grain markets tighten due to lower production", said Jørgen Ole Haslestad.
First-quarter fertilizer deliveries were down 22% on last year, but 40% up from the fourth quarter. Fertilizer volumes in stock were reduced by 17% through the quarter as sales picked up and production was curtailed, giving a net cash flow from operating activities of NOK 4,239 million. The Industrial segment delivered strong results with improved margins benefiting from pricing time lags, but volumes declined except for environmental products. The Upstream segment's first-quarter result was lower than last year as lower prices and higher raw material costs were only partly offset by lower energy prices. Fixed costs declined from last year reflecting synergies from the Kemira GrowHow acquisition.
Going forward, Yara will continue to reduce operating capital, and will benefit further from lower European energy costs, expected to be NOK 3.8 billion lower for the two next quarters compared with last year.
Torgeir Kvidal, Investor Relations
Telephone (+47) 24 15 72 95
Cellular (+47) 91 339 832
Bente Slaatten, Media Relations
Cellular (+47) 91 60 62 15
Yara International ASA is the world's leading chemical company that converts energy, natural minerals and nitrogen from the air into essential products for farmers and industrial customers. As the number one global supplier of mineral fertilizers, we help provide food for a growing world population. Our industrial product portfolio includes environmental protection agents that prevent air pollution. Yara's global workforce of 8000 employees represents the great diversity and knowledge that enables Yara to remain a leading performer in the industry.