Israel Chemicals (TASE: ICL: NYSE: ICL) reported fourth quarter and full year results for 2015 today. Revenue in the fourth quarter was $1.43 billion, up 1.7% from $1.40 billion in the corresponding quarter of 2014. The increase was primarily due to an increase in quantities of potash sold as well as the first time consolidation of companies acquired. This increase was partly offset by the sale of non-core businesses, an unfavorable foreign exchange impact (primarily from the devaluation of the euro against the dollar), a decline in selling prices of potash, as well as a decrease in sales due to the impact of a fire in a fertilizers production facility in Israel.
Revenue in 2015 was $5.4 billion down 12% from $6.1 billion in 2014. This decrease was due to lower quantities of potash and bromine sold as a result of the strike at ICL Dead Sea and ICL Neot Hovav, currency exchange rate fluctuations and the sale of non-core businesses, offset primarily by the first time consolidation of companies acquired, an increase in quantities in certain products sold, mainly potash, and an increase in selling prices, mainly of phosphate fertilizers.
Net profit for the fourth quarter of 2015 was $96 million up 12% from $86 million for the comparable period in 2014, an increase of 12%. Adjusted net profit for the fourth quarter of 2015 was $180 million up 67% from $108 million in the corresponding quarter, mainly due to operational excellence initiatives and higher prices in the bromine value chain.
Net profit for 2015 was $509 million up from $464 million in the corresponding quarter of 2014, and adjusted net profit in 2015 was $699 million up from $695 million in 2014.
Israel Chemicals president and CEO, Stefan Borgas said, “ICL’s fourth quarter was marked by tangible benefits from our operational excellence programs which we began in early 2014 as part of our ‘Next Step Forward’ strategy. These efficiency initiatives, which we expect to continue beyond 2016, reduced our production costs and led to record potash production at ICL Dead Sea and drove incremental profitability despite a difficult operating environment. I am also gratified by ICL’s other achievements during the quarter and the year, including the completion of our YPH phosphates joint venture in China, the divesture of nearly all of our non-core businesses, the performance of our bromine business, the integration of the whey proteins business into our Food Specialties operations and ICL Iberia’s strategic cooperation agreement with the Catalan government. These milestones reflect our adherence to our strategic focus. In 2016, we will continue to create greater balance between our commodity and specialty businesses in order to optimally position ICL for further growth and profitability.”
Published by Globes [online], Israel business news - www.globes-online.com - on February 9, 2016
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