Yara sees demand picking up
(Thomson Reuters ONE) - Oslo (2009-12-10): Yara International ASA today meets with investorsand analysts for Yara's Capital Markets Day to present how thecompany responded to the slow-down last season, how the market is nowpicking up and how the company is preparing for long-term growth inan attractive market."From third quarter 2008 Yara experienced an unprecedented drop infertilizer prices and deliveries. We mitigated the effects of theslow-down by reducing third-party purchases, cutting production andreducing fixed cost while financial flexibility was maintained byreducing working capital by NOK 14 billion and securing morelong-term financing. The last months we have seen demand for straightnitrogen fertilizer picking up, and the market has turned from beingtemporarily over-supplied to becoming tight. However, NPK remainsYara's most challenging business area as farmers continue to delaypurchases due to high potash prices", says President and CEO JørgenOle Haslestad.Yara presents new scenarios for future earnings at the CapitalMarkets Day. The scenarios are not a prediction of future results,but are "what if" examples based on selected fertilizer and energyprice scenarios. The earnings reflect the current business portfoliowithout any future growth.A supply-driven market with an Eastern European swing scenariotranslates into an estimated Earnings Per Share (EPS) of NOK 15. Theswing scenario is relevant if the fertilizer market is over-suppliedand Eastern Europe is the highest cost producer. A slow-down infertilizer deliveries like in the first three quarters of 2009 couldgive such a market situation. Continued growth in food demand and theneed for improved agricultural productivity increase the probabilityof a return to a demand-driven market. A demand-driven scenario withUSD 100 per ton urea margins yields an estimated EPS of NOK 35."The long-term fundamentals for fertilizer demand are strong asglobal grain consumption has proven robust during last year'smacro-economic slow-down, requiring continued improvements inagricultural productivity going forward. In addition, increasedagricultural efficiency represents a major opportunity for greenhousegas reduction. Yara has essential products and competence to achievethis as well as environmental products from the Industrial segment toreduce air emissions like NOx. Yara's cost position has continued toimprove over the last year. The JV in Libya increases Yara's share ofour gas sourcing from low-cost locations, but also our WesternEuropean cost position has improved as we have increased our hub gasexposure while East European gas prices are moving up. Yara's globalbusiness model forms a strong basis for future growth", saysPresident and CEO Jørgen Ole Haslestad.Link to Yara Capital Markets Day presentation material:http://www.yara.com/investor_relations/index.aspxLink to webcast of Yara's Capital Markets Day 10 December 2009 08:30CET:http://media01.smartcom.no/Microsite/start.aspx?eventid=4868ContactTorgeir Kvidal, Investor RelationsTelephone (+47) 24 15 72 95Cellular (+47) 91 339 832E-mail torgeir.kvidal(at)yara.comAsle Skredderberget, Media RelationsCellular: +47 41 44 36 10E-mail asle.skredderberget(at)yara.comYara International ASA is the world's leading chemical company thatconverts energy, natural minerals and nitrogen from the air intoessential products for farmers and industrial customers. As thenumber one global supplier of mineral fertilizers, we help providefood for a growing world population. Our industrial product portfolioincludes environmental protection agents that prevent air pollution.Yara's global workforce of 8000 employees represents the greatdiversity and knowledge that enables Yara to remain a leadingperformer in the industry.www.yara.comThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 10.12.2009 - 07:30 Uhr
Sprache: Deutsch
News-ID 9461
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