K+S warns Q2 profit dramatically lower than a year earlier, shares collapse
Germany-based fertilizer producer K+S AG (FRA:SDF1) warned Monday its second-quarter profit would be significantly below year-earlier levels due to weak prices, production outages and poor sales.
The company, which last year rejected a takeover approach from Canadian rival Potash Corp (TSX:POT), said preliminary earnings before interest and taxes dropped plunged to about $11 million (10 million euros) from almost $197 million (179 million euros) a year earlier.
Shares collapsed on the news, trading more than 10% lower to 9.19 euros in Frankfurt near the end of the day.
The company, which is expected to begin producing potash at its Legacy project in Saskatchewan, Canada, later this year, said that supply shortages were possible in coming months. This as a consequence of a limited provisionary permit for wastewater disposal from its Werra plant in Germany, which has already resulted in a production shortfall of more than 400,000 tonnes.
K+S will release detailed first-half financial data on Aug. 11.