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ICL Reports Record 2008 Results: $6.9B in Sales, $2.2B in Net Iincome*, 52.4% Gross Margin.

Article Excerpt
Virtually Unlimited Storage Capacity Enables Company to Stockpile Potash & Continue With Normal Production Levels

Comprehensive Cost Saving & Efficiency Enhancing Programs Accelerated in Response to Global Recession

Dividend of $175M Brings Dividends for 2008 to Record $1,028M

TEL AVIV, Israel, March 30 /PRNewswire-FirstCall/ --

Highlights: 2008 2007 Q4 2008 Q4 2007 Sales $6,904M $4,103M $1,118M $1,213M *Adjusted: Operating income $2,589M $743M $297M $226M Net income $2,202M $553M $279M $173M Gross margin 52.4% 38.0% 44.8% 40.7% Operating margin 37.5% 18.1% 26.6% 18.6% Net margin 31.9% 13.5% 25.0% 14.3%

Israel Chemicals Ltd. ("ICL") , a multinational fertilizer and specialty chemicals company, today reported results for the fourth quarter and full year ended December 31, 2008.

* Note: the Company's gross profit, operating profit and net profit for Q4 and 2008 reflect several one-time provisions Results including the influence of one-time provisions are presented in financial tables beginning on page 7 below.

Financial Results

Revenues: Revenues for 2008 rose by 68% to a record $6,904.0 million compared to $4,103.2 million in 2007. The increase derived from the Company's exceptional performance during the first three quarters of the year, reflecting the market's steep price rises and strong demand for potash, fertilizers and additional products. The increase also reflects a $305.8 million contribution from the business of Supresta, which was consolidated into the Company's financial results for the first time in August 2007.

Revenues for the fourth quarter decreased by 7.8% to $1,118.1 million compared to $1,213.4 million in the fourth quarter of 2007, reflecting the global credit crisis and ensuing economic slowdown, which began in September of 2008, and its effect on the quantities sold of most of the Company's fertilizers and other products. However, the quarter's relatively high prices as compared to the fourth quarter of 2007 mitigated the effect.

Gross profit: Gross profit for 2008 increased by 132% to $3,619.1 million, with gross margin for the year reaching 52.4% compared to 38.0% in 2007. The improvement reflected the increased selling prices of most of the Company's products, partially offset by increases in the costs of various inputs, primarily raw materials (especially sulfur) and energy during the same period. Gross profit was also affected by the year's strengthening of the shekel, on average, as compared to the dollar, which increased the Company's shekel-based expenses as expressed in dollar terms.

Gross profit for the fourth quarter of the 2008 was $501.0 million, an increase of 1.4% compared to $483.6 million in the fourth quarter of 2007. Gross margin for the quarter reached 44.8% compared to 40.7% for the parallel quarter of 2007.

Operating income: Operating income for 2008 was $2,588.7 million, an increase of 249% compared with $742.6 million in 2007....