ICL Falls to Month Low as Potash Corp. Profit Misses Estimates
Israel Chemicals Ltd. (ICL) dropped to the lowest in a month after Potash Corp. of Saskatchewan Inc., the world’s largest fertilizer producer by market value, reported results that were below analysts’ estimates.
The shares of Israel Chemicals, which makes fertilizer and potash from minerals harvested from the Dead Sea, declined 1.6 percent to 38.80 shekels, at 2:41 p.m in Tel Aviv, the lowest intraday level since Dec. 22.
Potash reported fourth-quarter net income of 78 cents a share, trailing the 87-cent average of 25 estimates compiled by Bloomberg. Sales were $1.87 billion, lagging behind the $2.10 billion average of 12 estimates. Potash also forecast first quarter profit below analysts’ estimates as distrubotrs delayed purchases.
Potash Corp. is cutting output from three Canadian potash mines after demand weakened. Fertilizer distributors and farmers are delaying potash purchases in anticipation of lower prices ahead of the U.S. planting season. Potash helps to strengthen plant roots and defend crops against drought.
To contact the reporter on this story: Shoshanna Solomon in Tel Aviv at ssolomon22@bloomberg.net
To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net
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