News Column

ICL Reports Q4 and 2013 Results

February 18, 2014

ICL, a manufacturer of mineral-based products, reported its early publication of unaudited financial results for the fourth quarter and full year.

In a release on February 12, the Company reported that financial results include:

Revenues: For the fourth quarter of 2013, sales totaled $1.42 billion, a 9 percent increase compared with $1.3 billion in the fourth quarter of 2012, reflecting an increase in quantities sold, primarily to China and India, as well as revenues derived from recent acquisitions.

For the full year 2013, ICL's sales totaled $6.27 billion compared with $6.47 billion in 2012. The decrease derived primarily from lower selling prices.

Gross profit: Gross profit for the fourth quarter totaled $527 million compared with $501 million in the fourth quarter of 2012. The increase, which reflected higher quantities sold, and a decline mainly in raw material and energy costs, was somewhat offset by a decrease in selling prices. Gross margin for the period was 37.2 percent compared with 38.5 percent for the fourth quarter of 2012.

For the full year, gross profit totaled $2.41 billion compared with $2.71 billion in 2012. The decrease in gross profit derived primarily from lower selling prices. Gross margin for the year was 38.4 percent compared with 41.9 percent for 2012.

Operating income: Operating income for the fourth quarter of 2013 was $123 million, a reduction of 35 percent from $190 million for the corresponding period last year. The decline derived mainly from increased expenses and from a $60 million expense in respect of an early retirement plan at Rotem. Adjusted operating income for the fourth quarter of 2013 was $218 million after excluding provisions for an early retirement plan at Rotem ($60M), waste removal at Bromine Compounds ($25M) and asset impairment at ICL-IP ($10M). This compared to $234 million for Q4 2012.

For the full year, operating income totaled $1.1 billion, a reduction of 29 percent compared with $1.55 billion in 2012. The decrease derived mainly from lower gross profit, increased expenses and expenses for the early retirement plan at Rotem. Operating margin for the year was 17.6 percent compared with 24.0 percent for 2012. Adjusted operating income for 2013 was $1.2 billion compared to $1.6 billion for 2012, a reduction of 25.2 percent.

Net income: Net income to shareholders for the fourth quarter of 2013 totaled $119 million, a reduction of 43 percent compared with $208 million in the parallel period of 2012. Adjusted net income for the fourth quarter of 2013 was $195 million after eliminating non- recurring effects, primarily taxes in respect of the release of trapped earnings, a provision for early retirement at Rotem, and a provision for removing waste at Rotem. The adjusted net income was 21 percent less than the $247 million recorded for Q4 2012.

For the full year, net income to shareholders totaled $819 million, a reduction of 37 percent compared with $1.3 billion recorded in 2012. The reduction in net income for the year derived primarily from the $60 million expense related to the early retirement plan at Rotem, as well as a one-time expense in the amount of $118 million in respect of the release of $1.07 billion in trapped earnings, and a higher rate of taxation on companies subject to Israel's Companies Law. Adjusted net income for the year was $1.01 billion compared with $1.34 billion in 2012, a reduction of 24.4 percent.

Cash flow: During the fourth quarter of 2013, cash flow from current operations totaled $116 million. For the full year, cash flow totaled $1,127 million, a 35 percent decrease compared with $1,727 million for 2012.

More information:

www.icl-group.com

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