Yara reports strong fourth-quarter results
Feb 07, 2012
Oslo (2012-02-07): Yara International ASA reports strong fourth-quarter results, primarily reflecting good farm profitability and improved margins. The 2011 annual result is the highest so far for Yara.
Yara reports fourth-quarter net income after non-controlling interests of NOK 3,386 million (NOK 11.84 per share), compared with NOK 1,564 million (NOK 5.42 per share) last year. Excluding net foreign exchange loss and special items, the result was NOK 8.82 per share compared with NOK 6.25 per share in fourth quarter 2010. Fourth-quarter EBITDA excluding special items was NOK 4,001 million compared with NOK 3,144 million last year. Yara's board will propose to the Annual General Meeting a dividend payment of NOK 7 per share for 2011.
"Yara reports strong fourth-quarter results as margins improved compared with last year, more than offsetting the impact of lower sales volumes," said Jørgen Ole Haslestad, President and Chief Executive Officer of Yara.
"Northern hemisphere fertilizer customers have been reluctant to take positions ahead of spring application, resulting in slow fourth-quarter sales overall. However, crop prices and farm margins remain healthy, and fertilizer deliveries will need to recover to avoid a decline in global grain stocks," said Jørgen Ole Haslestad.
Adjusted for the shortfall of Libyan urea and structural changes, Yara fertilizer deliveries were down 10% compared with fourth quarter 2010, while margins improved particularly for urea and nitrates. Industrial volumes increased 5%, reflecting growth in environmental products and technical ammonium nitrates. Yara's production system ran slightly below normal levels in the fourth quarter, in line with earlier guidance.
Activity levels have increased in global nitrogen markets during early first quarter, and healthy farm margins indicate normal spring nitrogen consumption in the Northern Hemisphere. However, European nitrogen industry deliveries for the 2011/2012 season could end lower than the previous season, due to the low deliveries in second half 2011. Yara is targeting a stable European nitrate market share for the season, compared with a year earlier.
Link to 4Q report and presentation:
Link to 4Q webcast 07 February at 09:30 CET:
Thor Giæver, Investor Relations
Telephone (+47) 24 15 72 95
Cellular (+47) 48 07 53 56
Esben Tuman, Media Relations
Cellular (+47) 90 50 84 00
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 7,300 employees represents the great diversity and knowledge that enables Yara to remain a leading performer in the industry.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.