Jul 16, 2009
Yara reports second-quarter net income after minority interest of NOK 1,122 million (NOK 3.88 per share), compared with NOK 4,354 million (NOK 14.93 per share) last year. Excluding net foreign exchange gains and special items, the result was approximately NOK 1.19 per share compared with NOK 12.44 per share in second quarter 2008. EBITDA for the quarter was NOK 1,259 million compared with NOK 6,215 million in second quarter 2008.
"In a challenging quarter, Yara generated a strong cash flow once more by competing well for deliveries and increasing its European market share, cutting production and thereby reducing inventories further. Sales volumes including third-party sourced products were below last year, but sales of Yara produced products were up 4%. The new season nitrate prices kick-started deliveries in Europe where June volumes came in 25% above last year", said Jørgen Ole Haslestad, President and Chief Executive Officer of Yara.
"Global fertilizer consumption is estimated to have declined more than 5% the last season. This will have a negative effect on grain production in a situation where global grain inventories remain at low levels, and will support future demand for fertilizer," said Jørgen Ole Haslestad.
Second-quarter fertilizer deliveries were down 13% on last year, but up 7% on first quarter this year. Fertilizer volumes in stock were reduced by 30% through the quarter as sales picked up and production was curtailed, giving a net cash flow from operating activities of NOK 4,272 million. Fertilizer margins declined due to lower prices and further inventory write-downs, primarily related to potash and phosphate, only partly offset by lower energy cost. The Industrial segment delivered strong results with improved margins, benefiting from pricing time lags. Fixed costs declined from last year reflecting synergies from the Kemira GrowHow acquisition.
Going forward, Yara will benefit further from lower European energy costs, estimated to be NOK 2.8 billion lower in the second half compared with last year.
Link to 2nd quarter webcast 16 July at 0930 CET
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.