Operating profit was eroded by the appreciation of the shekel.
Israel Chemicals (TASE: CHIM) today published its financial report for the first quarter of 2007. The company posted $883 million revenue, up 23.2% on the $717 million for the corresponding quarter of 2006. The higher sales reflect both increased volume and higher prices for potash and phosphate fertilizers during the quarter. These increases were offset by lower sales of bromide and certain flame retardants.
Sales and marketing costs rose 31.7% to $123 million for the quarter.
Israel Chemicals posted a net profit of $95.4 million for the first quarter, slightly less than the $96.6 million posted for the corresponding quarter. The company estimates that the shekel’s appreciation cost it $18 million, because the bulk of sales are denominated in dollars and euros, whereas most of the operating costs take place in Israel and are denominated in shekels.
Israel Chemicals’ guidance cites reports in professional fertilizer journals, which predict higher prices for phosphates because of growing demand. Phosphate prices are currently $100 per ton higher than at the end of 2006.
Published by Globes [online], Israel business news - www.globes.co.il - on May 29, 2007
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