Strong Fertilizer Volume -- Especially in China -- Led To Solid Growth in ICL's Q1 Results

  Strong Fertilizer Volume -- Especially in China -- Led To Solid Growth in
                               ICL's Q1 Results

- Sales Up 26% Compared With Q4 2012, 9% Compared with Q1 2012; Record Q1
Operating Profit, Second Only to Q1 2008 -

PR Newswire

TEL AVIV, Israel, May 13, 2013

TEL AVIV, Israel, May 13, 2013 /PRNewswire/ --ICL (TASE:ICL), a multinational
fertilizer and specialty chemicals company, today reported its financial
results for the first quarter ended March 31, 2013.

Financial Highlights*

                               Increase
                   Q1    Q1    (Year-
In USD millions                         Q4    Increase
                   2013  2012  Over-    2012  (Sequential)

                               Year)
Sales              1,640 1,499 9%       1,303 26%
Gross margin       40.2% 39.9%          38.5%
Operating income   363   343   6%       190   91%
Net income to the
Company's         305   289   6%       208   47%
shareholders
EBITDA             445   432   3%       323   38%

* Due to the implementation of two new accounting standards (IFRS), the
comparative numbers have been restated.

  oICL Fertilizers: both potash and phosphate fertilizer businesses deliver
    strong growth, with increasing volumes compensating for lower prices
  oSpecialty chemicals businesses:  continue to be affected by the global
    economic slowdown
  oICL Industrial Products: continued rise in demand for drilling fluids and
    other brominated products for the energy market compensated  partially for
    weakness in flame retardant demand and prices from electronics  and
    construction sectors
  oICL Performance Products: stable results despite worldwide economic
    uncertainty 

Financial Results

Revenues: For the first quarter of 2013, ICL's sales totaled $1,640 million, a
9% increase compared with $1,499 million recorded in the first quarter of 2012
and 26% compared sequentially with $1,303 million in the fourth quarter of
2012. The increase reflected rising quantities sold of potash, phosphates and
some of the Company's other products, countered partially by reductions in
selling prices. Approximately 50% of the Company's revenues for the quarter
derived from products manufactured outside of Israel.

EBITDA: EBITDA for the reporting period totaled $445 million, a 3% increase
compared with $432 million for the first quarter of 2012, and a 38% increase
compared with $323 million for the fourth quarter of 2012. The improvement
reflected the rise in gross profit, as described below, countered partially by
higher energy expenses.

Gross profit: Gross profit for the first quarter of 2013 totaled $659 million,
up 10% compared with $598 million in the first quarter of 2012 and 32%
compared with $501 million in the fourth quarter of 2012. The increase
reflected the higher revenues, countered partially by rising energy costs.
Gross margin for the period totaled 40.2% compared with 39.9% for first
quarter of 2012, and with 38.5% for the fourth quarter of 2012.

Operating income: Operating income for the first quarter of 2013 totaled $363
million, a 6% increase compared with $343 million for the first quarter of
2012 and 91% compared with $190 million for the fourth quarter of 2012. The
increase reflected the rise in gross profit, countered partially by higher
operating expenses. Operating margin for the period was 22.1%, a slight
decrease as compared with 22.9% in the first quarter of 2012, but up
significantly compared with 14.6% in the fourth quarter of 2012, a period
characterized by low sales.

Net income: Net income to shareholders for the first quarter of 2013 totaled
$305 million, a 6% increase compared with $289 million for the first quarter
of 2012 and 47% compared with the fourth quarter of 2012.

Highlights of Core Business Segments

  oICL Fertilizers: The segment's sales for the first quarter of 2013 totaled
    $1,009 million, representing 57.8% of total revenues (before offsets of
    inter-segment sales). This is a 20% increase compared with the first
    quarter of 2012, and up 42% compared with the fourth quarter of 2012,
    reflecting the contribution of renewed potash shipments to China together
    with increased volumes sold of phosphates and other products, countered
    partially by a reduction in the selling price of most of the segment's
    products.

    During the quarter, ICL Fertilizers produced 1.3 million tonnes of potash,
    a 7.5% increase compared with the first quarter of 2012. It sold 1,309
    thousand tonnes of potash during the quarter, an increase of 42% compared
    with the parallel quarter of 2012 and 62% compared with the fourth quarter
    of 2012, due primarily to the strong shipments to China. In addition, it
    sold 465 thousand tonnes of fertilizers, an increase of more than 41%
    compared with the first quarter of 2012 and 64% compared with the fourth
    quarter of 2012.

    ICL Fertilizers' operating income for the first quarter of 2013 totaled
    $293 million, a 21% increase compared with the first quarter of 2012, and
    more than double its level in the fourth quarter of 2012. Operating margin
    for the period was 29.0%, compared with 28.7% for the first quarter of
    2012.

Fertilizer market trends and ICL Fertilizer's strategic developments:

  oGrain prices:  During the first quarter of 2013, the price of grains
    declined moderately, but remained relatively high as compared with
    agricultural costs. The high profits made possible by these price levels
    incentivize farmers to purchase more complex fertilizers (those not based
    solely on nitrogen).
  oPotash supply agreements: In the first quarter of 2013, a number of potash
    manufacturers signed supply agreements with Chinese customers for the
    first half of the year, and shipments to the country have renewed at an
    accelerated pace. The new contracts representing a decrease of $70 per
    tonne compared with contracts for the first half of 2012. ICL Fertilizers
    has signed contracts with its Chinese customers to ship 660 thousand
    tonnes of potash during the first half of 2013 at similar terms.

    During February and March 2013, potash supply contracts were closed with
    Indian customers for April 2013 – January 2014. The price agreed upon was
    $63 lower than that set out in the previous agreements signed in August
    2011. Under this framework, ICL Fertilizers will supply its Indian
    customers with 920,000 tonnes of potash (including options to supply
    50,000 tonnes) at a price similar to the prices announced recently by the
    potash manufacturers and others that supply potash to the Indian market.
  oFertilizer demand in Brazil: Brazil opened 2013 with strong demand for
    fertilizers. The quantity of its fertilizer imports is expected to
    continue rising during the second and third quarters as the Brazilian
    market prepares for the peak of its fertilizing season, which begins in
    September.
  oICL's phosphate sales:  During the quarter, Brazil's strong demand for
    phosphates, combined with Europe's stable level of phosphate demand,
    moderated the effect of the decline in demand in India.
  oICL's phosphate reserves: ICL Fertilizers' plan for mining phosphates in
    Israel's Barir Field (South Zohar) has reached the planning approval
    stages, however no decision has yet been made regarding its actualization.
    If a decision is made to not allow the mining, it is likely that the
    Company's phosphate reserves will be reduced significantly in the mid-term
    and long term, leading inevitably to the gradual phase-out of its
    phosphate operations in Israel. While continuing to advocate for the
    initiation of mining at the Barir Field, in light of this possibility, the
    Company has begun investigating alternative phosphate mining sites outside
    of Israel.
  oICL  Industrial  Products: ICL IP's sales for the first quarter of 2013
    totaled $338 million, a 6% decrease compared with the first quarter of
    2012, representing 19.4% of total revenues (before offsets of
    inter-segment sales). The decrease reflected lower quantities sold,
    primarily of flame retardants, together with lower prices of most of the
    segment's products, due to declines in the electronics and computer
    markets. This was countered somewhat by increased sales of the segment's
    products for energy-related applications, including its clear brines for
    deep-water oil wells, biocides for the treatment of water used in
    "fracking" natural gas production operations, and Merquel™ mercury removal
    products.

    The segment's operating income for the first quarter of 2013 totaled $48
    million compared with $61 million for the first quarter of 2012. The
    decrease reflected rising operating expenses compounded by the lower sales
    prices, offset partially by exchange rate fluctuations and an increase in
    quantities manufactured.

Market trends and ICL IP's strategic developments:

  ICL PP's strategic developments: In February, ICL Performance Products
  acquired the phosphorus pentasulfide (P[2]S[5]) business aspects and
  operations of Thermphos International B.V. (NL) located in Knapsack,
  Germany. P[2]S[5]is a central ingredient in the manufacture of fuel
  additives, lubricants, pesticides, special mining compounds and other
  products. The acquisition establishes ICL Performance Products as one of the
  leading manufacturers of P[2]S[5] in Europe as well as its leading
  manufacturer in the U.S.

     oFavorable regulatory environment: During the quarter, increasingly
       stringent environmental regulations related to oil and gas exploration
       and refining increased general usage of bromine and brominated
       products, such as the Company's Merquel™, clear brines and biocides.
     oIncrease of worldwide oil and gas exploration activities: The
       resumption of the American government's granting of licenses for
       deep-water oil and gas exploration activities in the Gulf of Mexico led
       to an increase in sales of the Company's clear brines during 2012 and
       the first quarter of 2013. In general, there has been an increase in
       the drilling activities throughout the world, including deep-water
       drilling and hydrofracking activities.
     oEconomic environment's effect on FR sales: The global economic slowdown
       that characterized most of 2012 and the first quarter of 2013 has
       reduced demand for the full range of electronic products, resulting in
       decreased demand for all flame retardants, especially brominated flame
       retardants designed for the electronics industry. During the reporting
       period, the price of flame retardants stabilized to their current
       level.

  oICL Performance Products: ICL PP's sales for the first quarter of 2013
    totaled $357 million, representing 20.4% of total revenues (before offsets
    of inter-segment sales), a 4% increase compared with $343 million for the
    first quarter of 2012. The increase reflects higher quantities sold offset
    partially by a decline in prices.

    The segment's operating  income for the quarter totaled $35 million, a 13%
    decrease compared with $40 million in the first quarter of 2012. This
    reflected primarily an increase in operating expenses and the decreased
    selling prices, offset partially by a decline in the price of raw
    materials and energy.

Dividends:

The Company's Board of Directors today declared that a dividend totaling $213
million will be paid on June 20, 2013 in respect of its first quarter 2013
results.

About ICL

ICL is one of the world's leading fertilizer and specialty chemicals
companies. For a world challenged by the rapid growth rate of its population
and the deterioration of its scarce resources, ICL makes products that
increase global food supplies, improve industrial materials and processes, and
making energy exploration activities more efficient and eco-friendly.

ICL produces approximately a third of the world's bromine and is the 6^th
largest potash producer in the world. ICL is a leading supplier of fertilizers
in Europe and a major player in specialty fertilizer market segments.One of
the world's most integrated manufacturers and suppliers of phosphate products,
ICL has become the world's leading provider of pure phosphoric acid and a
major specialty phosphate player.

ICL is comprised of three core segments: ICL Fertilizers, ICL Industrial
Products and ICL Performance Products. Its major production activities are
located in Israel, Europe, the US, South America and China, and are supported
by major global marketing and logistics networks. ICL extracts potash,
bromine, magnesium chloride and sodium chloride from Israel's Dead Sea, mines
phosphate rock from Israel's Negev Desert, and mines potash and salt in Spain
and the UK.

ICL's shares are traded on the Tel Aviv Stock Exchange (TASE: ICL).

Forward Looking Statement

This press release contains forward-looking assessments and judgments
regarding macro-economic conditions and the Group's markets, and there is no
certainty as to whether, when and/or at what rate these projections will
materialize. Management's projections are likely to change in light of market
fluctuations, especially in ICL's manufacturing locations and target markets.
In addition, ICL is likely to be affected by changes in the demand and price
environment for its products as well as the cost of shipping and energy,
whether caused by actions of governments, manufacturers or consumers. ICL can
also be affected by changes in the capital markets, including fluctuations in
currency exchange rates, credit availability, interest rates, etc.

Contact:
Fleisher Communications and Public Relations
Amiram Fleisher
+972-3-6241241
amiram@fleisher-pr.com

(financial tables follow)

ICL
PRINCIPAL FINANCIAL RESULTS
THREE MONTHS ENDED MARCH 31, 2013
                                   3 months ended March 31,
                                   2013                  2012
                                   $ millions % of sales $ millions % of sales
Net sales                          1,640      100.0      1,499      100.0
Gross profit                       659        40.2       598        39.9
Operating income                   363        22.1       343        22.9
 Pre-tax income                   360        22.0       333        22.2
Net income to the                 305        18.6       289        19.3
Company's shareholders
EBITDA*                            445        27.1       432        28.8
Operating cash flow                192                   321
Investment in property, plant and                       
equipment less grants received
                                   183                   143

* EBITDA is calculated as follows:

                            3 months ended March 31,
                            2013         2012
                                       

Net income                  305          289
Amortization & depreciation 83           83
Financing expenses, net     2            17
Taxes on income             55           43
EBITDA                      445          432

* Due to the implementation of two new accounting standards (IFRS), the
comparative numbers have been restated.

ICL
PRINCIPAL RESULTS FROM CORE
MANAGERIAL SEGMENTS
THREE MONTHS ENDED MARCH 31, 2013
                         3 months ended March 31,
                         2013                  2012
                                    % of gross            % of gross
 Sales CIF by segment  $ millions            $ millions
                                    sales                 sales
ICL Fertilizers          1,009      57.8       844        56.3
ICL Industrial Products  338        19.4       359        22.6
ICL Performance Products 357        20.4       343        21.6
Other and offsets        (64)                  (47)
Total                    1,640                 1,499

Note: Segment sales data and their percentage of total sales are before
offsets of inter-segment sales.

                            3 months ended March 31,
                            2013                    2012
                                       % of segment            % of segment
Operating income by segment $ millions              $ millions
                                       sales                   sales
ICL Fertilizers             293        29.0         242        28.7
ICL Industrial Products ^   48         14.2         61         17.0
ICL Performance Products    35         9.9          40         11.6
Other and offsets           (13)                    (0)
Total                       363                     343

* Due to the implementation of two new accounting standards (IFRS), the
comparative numbers have been restated.

SOURCE ICL