ICL (TASE:ICL), a multinational fertilizer and specialty chemicals company, today reported results for the third quarter and nine months ended September 30, 2009.
Financial Results for the Third Quarter
Revenues: Revenues for the third quarter of 2009 were $1,347 million, up 24% as compared sequentially with $1,083 million for the second quarter of 2009. Revenues for the third quarter of 2008 were $2,178 million, reflecting the exceptional demand and prices that characterized that "spike" year for the fertilizers industry. The steady sequential increase in sales may be an indication that ICL's markets have begun to recover and that demand has begun a return to normal levels.
*Note: the Company's gross profit, operating profit and net profit for Q3 and 2009 reflect several one-time events. Results including the influence of one-time events are presented in financial tables beginning on page 6 below. To provide investors with better insight into the Group's operating performance, the following discussion relates to adjusted results that exclude these one-time provisions.
Gross profit: Gross profit for the third quarter of 2009 was $575 million, up 50% as compared sequentially with $382 million for the second quarter of 2009. Gross margin for the third quarter of 2009 was 42.7%, compared with 35.3% for the second quarter of 2009. Gross profit for the third quarter of 2008 was $1.2 billion, reflecting the extraordinary sales and 57.0% gross margin achieved during that "spike" year. The sequential increase in gross profit derived from the higher level of sales, together with a significant reduction in some input costs as compared with 2008 (especially sulfur and energy), countered partially by a reduction in the production of some of the Company's products. Profitability was also enhanced by the period's weakening of the shekel as compared to the dollar, which reduced shekel-based expenses as expressed in dollar terms.
Operating income: Operating income for the third quarter of 2009 was $357 million, up 87% as compared sequentially with $191 million for the second quarter of 2009. Operating margin for the third quarter of 2009 was 26.5%, compared with 17.6% for the second quarter of 2009. Operating income for the third quarter of 2008 was $963.6 million, with an Operating margin of 44.2%, both all-time records for the Company reflecting the year's steep climb of fertilizer prices, which peaked during the third quarter.