SANTIAGO, Chile, Nov. 20, 2013 /PRNewswire/ -- Sociedad Quimica y Minera de Chile S.A. ("SQM") (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A) reported today earnings for the nine months ended September 30, 2013 of US$398.1 million (US$1.51 per ADR), a decrease from US$507.4 million (US$1.93 per ADR) for the nine months ended September 30, 2012. Gross Margin reached US$575.2 million (33.6% of revenues) for the nine months ended September 30, 2013, a decrease compared to US$794.3 million (43.4% of revenues) for the nine months ended September 30, 2012. Revenues totaled US$1,710.9 million for the nine months ended September 30, 2013, representing a decrease of 6.4% compared to US$1,828.2 million reported for the nine months ended September 30, 2012.
The Company also announced earnings for the third quarter of 2013, reporting net income of US$138.9 million (US$0.53 per ADR) compared to US$165.2 million (US$0.63 per ADR) for the third quarter of 2012. Gross Margin for the third quarter of 2013 reached US$148.5 million, a decrease compared to US$262.3 million for the third quarter of 2012. Revenues totaled US$521.1 million, a decrease of approximately 15.3% compared to US$615.3 million for the third quarter of 2012.
Patricio Contesse, SQM's Chief Executive Officer, stated, "Our third quarter results were impacted by recent uncertainty in the potassium chloride market. There are various reports and information available today regarding the potash market. These reports include both positive and negative information, which has in turn led to uncertainty relating to short-term potassium chloride pricing. We continue to believe that market demand is the most important indicator when assessing the potash market, and we are confident that total demand levels for 2014 will surpass the levels reached in 2013. Our total production cost of potassium chloride is well below the market price."
Mr. Contesse went on to say, "In the iodine market, we have seen slightly lower growth than anticipated demand during the first nine months of 2013. As expected, we see new volumes from competitors in the iodine market, which impacted our third quarter results. With limited public information available from our competitors, we do not have a clear view on supply growth in the future; it is therefore difficult to give specific guidance relating to our iodine sales volumes for 2014."
On a different subject, Mr. Contesse said, "Recently, we teamed with a leading global management consultant in an effort to reduce costs company-wide. We are proud of the results we achieved as various initiatives were implemented at all levels of SQM. The company is moving in the right direction, reducing costs and improving its productivity."
For the complete version of this press release, please visit our IR Web site: http://ir.sqm.com/English/investor-relation/default.aspx
About SQM
SQM is an integrated producer and distributor of specialty plant nutrients, iodine, lithium, potassium-related fertilizers and industrial chemicals. Its products are based on the development of high quality natural resources that allow the Company to be a leader in costs, supported by a specialized international network with sales in over 110 countries. SQM's development strategy aims to maintain and strengthen the Company's position in each of its businesses.
The leadership strategy is based on the Company's competitive advantages and on the sustainable growth of the different markets in which it participates. SQM's main competitive advantages in its different businesses include:
- Low production costs based on vast and high quality natural resources;
- Know-how and its own technological developments in its various production processes;
- Logistics infrastructure and high production levels that allow SQM to have low distribution costs;
- High market share in all its core products;
- International sales network with offices in 20 countries and sales in over 110 countries;
- Synergies from the production of multiple products that are obtained from the same two natural resources;
- Continuous new product development according to the specific needs of its different customers;
- Conservative and solid financial position.
For further information contact:
Gerardo Illanes 56-2-24252022 / gerardo.illanes@sqm.com
Kelly O'Brien. 56-2-24252074 / kelly.obrien@sqm.com
For media inquiries, contact: Rosalia Vera / rvera@imaginaccion.cl
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "plan," "believe," "estimate," "expect," "strategy," "should," "will" and similar references to future periods. Examples of forward-looking statements include, among others, statements we make concerning the Company's business outlook, future economic performance, anticipated profitability, revenues, expenses, or other financial items, anticipated cost synergies and product or service line growth.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are estimates that reflect the best judgment of SQM management based on currently available information. Because forward-looking statements relate to the future, they involve a number of risks, uncertainties and other factors that are outside of our control and could cause actual results to differ materially from those stated in such statements. Therefore, you should not rely on any of these forward-looking statements. Readers are referred to the documents filed by SQM with the United States Securities and Exchange Commission, specifically the most recent annual report on Form 20-F, which identifies important risk factors that could cause actual results to differ from those contained in the forward-looking statements. All forward-looking statements are based on information available to SQM on the date hereof and SQM assumes no obligation to update such statements, whether as a result of new information, future developments or otherwise.
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