Miner K+S quarterly earnings hit by lower potash prices
German potash and salt miner K+S published its third quarter results on Thursday that beat revenue and core profit expectations but were weaker than a year ago following a fall in potash prices.
The company reported earnings before interest, tax, depreciation and amortisation (EBITDA) of €66-million ($70.16-million), exceeding analysts' expectations by 11%, according to a consensus by Vara research.
Potash prices have stabilised, following a period of volatility caused by Russia's invasion of Ukraine that shrank the margins of potash miners.
"Fortunately, we have again seen a high demand for speciality fertilisers. Prices were lower overall than in the third quarter of the previous year, but so were costs, so that we were largely able to compensate for this," CEO Burkhard Lohr said in an interview.
K+S further trimmed its outlook for 2024, saying it expected to reach EBITDA of around €540-million, at the lower end of its previously announced €530-million to €620-million range.
It said sales in the agriculture segment would be lower than expected because of production bottlenecks caused by a higher than average sickness rate in Germany.
For the rest of the year, K+S also said there would be no oversupply.
Asked whether the election of Donald Trump to the White House would affect K+S' business in the United States, Lohr said that was unlikely.
Trump has threatened trade tariffs, but Lohr said the lack of domestic potash production and the size of U.S. agriculture meant trade barriers would be illogical.
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