Israel Chemicals Ltd. (TASE: ICL) reported a sharp fall in revenue and profit in the second quarter of 2014 due to lower prices and sales volume.
Revenue for the second quarter of 2014 was $1.54 billion, down from $1.77 billion in the corresponding quarter of 2013. For the first half of 2014 revenue was $3.15 billion, down from $3.41 billion in the first half of 2013.
Net profit to shareholders for the second quarter of 2014 was $67 million down from $316 million in the corresponding quarter of 2013. Excluding non-recurring expenses, net profit for the quarter was $214 million.
Gross profit for the second quarter of 2014 was $542 million, down from $718 million in the corresponding quarter of 2013. Gross margin for the quarter was 35.3% compared with 40.6% for the second quarter of 2013. For the six-month period, gross profit was $1.1 billion, down from $1.38 billion in the first half of 2013. Gross margin for the period was 35.1% compared with 40.4% in the first half of 2013.
Operating profit for the second quarter of 2014 was $78 million compared with $393 million for the second quarter of 2013.
As part of the company's "Next Step Forward" strategy, Israel Chemicals said it is implementing streamlining programs, integrating its global processes and pursuing programs to improve its manufacturing costs. Within this framework, the company expects these actions will result, by the end of 2016, in savings of $350 million in annual terms compared to 2013.
Relating to the Sheshinski II Committee on royalties and taxes the Board decided, "to continue a freeze in investments in Israel; cancel expected investments that have already been approved and cease approval of investments worth $750 million; continue examining feasibility of other investment programs worth $1 billion; develop a plan to ensure profitability of all operations and production lines in Israel; find ways to reduce costs; and take legal action to protect the rights of the company."
Published by Globes [online], Israel business news - www.globes-online.com - on August 7, 2014
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