Israel Chemicals Ltd. (TASE: ICL), controlled by Israel Corporation (TASE: ILCO), reported its fourth quarter and full-year 2010 results this morning. Revenue totaled $5.691 billion in 2010, 25% more than the $4.554 billion recorded in 2009. Fourth quarter revenue was $1.42 billion, below expectations of $1.44 billion according to a Bloomberg survey. The company is managed by CEO Akiva Mozes.
Net profit for 2010 was $1.024 billion, compared with $770 million in 2009. Net profit for the fourth quarter was $245 million, a record for the company, but nevertheless disappointing in comparison with estimates of $277 million. In the corresponding quarter of 2009, net profit was $202 million.
In a breakdown by product segment, potash sales were $2.14 billion in 2010, compared with $1.429 billion in 2009. Sales of phosphates were $1.05 billion, compared with $787 million in 2009. ICL Industrial Products had sales of $1.31 billion in 2010, compared with $1.015 billion in 2009; and the Performance Products segment had sales of $1.34 billion in 2010, compared with $1.328 billion in 2009.
The company's top management continued to earn well. Mozes's salary was $5.7 million, or NIS 20.23 million (at NIS 3.55/$). The salary of company chairman Nir Gilad, who is CEO of Israel Corp., was $2.35 million, or NIS 8.34 million. Mozes's deputy, Asher Grinbaum, earned $2.12 million last year.
Psagot Investment House Ltd. analyst Limor Gruber said that the results were surprisingly strong, and that the outstanding sectors were those which have the potential for future growth - potash and industrial products.
Gruber says that potash quantities sold were nice despite a problem at an Eilat facility. There was a sharp improvement in operating profit compared with the previous quarter, as the average price and quantities produced were higher than expected. The big jump in quantity came from Europe, where very little quantities were produced in the previous quarter, due to summer vacation. Higher prices began to come into effect, and the average price per ton was $391, the highest level since the first quarter of 2010.
Psagot maintains its "Buy" recommendation with a NIS 68 price target.
In early trading, Israel Chemicals shares are up 0.56%, at NIS 59.33.
Published by Globes [online], Israel business news - www.globes-online.com - on March 28, 2011
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