Israel Chemicals Ltd. (TASE: CHIM) today published its financial reports for the fourth quarter of 2006 and the year as a whole. The company’s revenue rose in 2006, but its net profit shrank.
Israel Chemicals posted $3.26 billion revenue in 2006, up 9.1% on 2005. The company attributes the growth to the acquisition of Astaris LLC (now part of ICL Performance Products LP) and higher prices for some of the company’s products. Growth was partly offset by smaller sales for potash and some industrial products. Sales in the North America rose 22% last year, the highest growth by region.
Israel Chemicals posted a net profit of $373.9 million in 2006, down 11.4% from the $422.2 million posted in 2005. Gross profit rose 2.7% to $1.17 billion in 2006, but the gross profit margin fell to 36% from 28.2% in 2005. Operating profit fell to $536.4 million, $24.9 million less than in 2005, which the company attributed to delays in potash contracts with China and India and weakness in the European and Brazilian fertilizer markets.
Israel Chemicals posted $839.6 million revenue for the fourth quarter, up 8.3% on the corresponding quarter of 2005, thanks to higher potash sales, especially in China, India and Brazil. Gross profit rose 24.1% to $329.4 million, and net profit rose to $90.2 million from $82 million for the corresponding quarter.
Yesterday, Leader Capital Markets Ltd. reiterated its “Buy” recommendation for the company. Merrill Lynch has also reiterated its “Buy” recommendation and raised its target price by NIS 3 to NIS 30.
Published by Globes [online], Israel business news - www.globes.co.il - on March 28, 2007
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