Israel Chemicals Ltd. (TASE: ICL) has reported its financial results for the first quarter of 2008, and they show that revenue and profit surpassed already optimistic expectations.
Revenue at the chemicals firm reached $1.53 billion, fueled by fast-rising prices and a sharp increase the quantities of potash and phosphate rock sold.
Net profit rose to $347 million.
The results beat most expectations. IBI had expected $250 million net profit on $1.4 billion revenue, and Psagot Investment House Ltd. analyst Limor Gruber had expected net profit of $211 million on $1.24 billion revenue.
Fertilizer sales reached $953 million, reflecting 61% of revenue. This is an increase from the corresponding quarter of 2007, when fertilizer sales of $451.9 million reflected 50.3% of revenue.
Sales of potash rose to $581.4 million. The figures include potash sales to Spain, England, and Israel. Sales to those countries offset the effect of dragged-out negotiations with importers in China.
The company announced that it would distribute a total dividend of $173 million in June.
Yesterday, IBI analyst Yuval Zehira told "Globes" that by the third quarter, he expects Israel Chemicals to overtake Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) and become Israel's most profitable company. "Teva reports a quarterly profit of about $500 million, and at the expected pace, Israel Chemicals, by the third quarter, can surpass this level and earn a quarterly profit of nearly $600 million."
Published by Globes [online], Israel business news - www.globes-online.com - on May 27, 2008
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