Chile's SQM quarterly net profit jumps
Chile's SQM, the world's biggest specialty fertilizer company, on Wednesday said quarterly net profit jumped 94 percent as demand rose for potassium-related fertilizers, especially in Brazil, and from a one-time gain from selling a cement company stake.
SQM said third-quarter net profit was $25.7 million, or 98 cents per American Depositary Receipt, up from $13.3 million, or 50 cents per ADR in the same period last year.
SQM, which sells fertilizers and industrial chemicals in North America, Europe, Asia and Latin America, said third-quarter revenue rose 10 percent to $223.7 million and operating profit, or earnings before interest, taxes, financial costs and extraordinary items, rose 49 percent to $39.6 million.
SQM Chief Executive Officer Patricio Contesse said in a statement that increased demand, tighter supply and higher prices for their products were partially offset by rising freight costs, a stronger Chilean peso and higher energy costs.
Sales of specialty fertilizers showed strong growth, while industrial chemicals sales remained relatively flat, the company said.
The company reported an after-tax profit of $6 million resulting from a sale in August of its 14.05 percent stake in cement company Empresas Melon for $69.3 million in cash.
(From Reuters, November 10, 2004)
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