ICL Reports Net Earnings of $75 Million in Second Quarter Results

Israel Chemicals (NYSE:ICL) announced its second quarter financial and operational highlights, which showed sales of $1.2 billion, down 22 percent from Q2 2014.
As quoted in the press release:

ICL’s sales in the second quarter were $1.2 billion, down 22% from the comparable quarter in 2014 primarily due to a strike at two of its Israeli plants which concluded during the quarter. Operating income for Q2 totaled$107 million. Adjusted operating income for the second quarter of 2015 totaled $251 million compared to $243 million for Q2 2014. Net income for Q2 2015 totaled $75 million compared to $68 million for Q2 2014, and on an adjusted basis, net income was $177 million compared to $214 million for Q2 2014.

Highlights:

• Sales of $1.2B, down 22% from Q2’14 primarily due to strike at two plants in Israel
• Reported operating income of $107M, up 37% over Q2’14; Adjusted operating income of $251M
• Net income of $75M, up 10% from Q2 ’14
• Potash production at the Dead Sea returns to pre-strike levels, ramping up towards 4 million tonnes thus compensating for the strike losses
• Improved efficiency and managerial control following completion of the strike –
• Strategic progress marked by advances in the phosphate JV in China and completion of the Allana Potash acquisition

Stefan Borgas, president and CEO of ICL, commented:

During the second quarter we achieved important milestones in implementing vital efficiency measures that will help two of our major sites in Israel to regain and improve their competitiveness in the highly challenging potash and bromine markets in which we operate, as well as allow management to gain back control over the plants. The measures we are taking, including reducing labor costs and improving work standards at the plants, as well as the freedom we will now have to implement a Shared Services Center in Israel and pursue operational excellence, are in line with our strategic goal to improve our competitive position throughout our global operations. While ICL’s second quarter sales were sharply lower as a result of the strike, we are very pleased that it has concluded with important achievements for the Company and with less financial impact than initially anticipated.

Click here to read the full Israel Chemicals (NYSE:ICL) press release.