Israel Chemicals published on Wednesday morning its financial data for the third quarter of 2013. It attributed the decline in sales and profits to “weakness and instability in the potash market, which led to an appreciable reduction in amounts sold and to lower selling prices of fertilizers.”
The price of ICL stock also dropped Wednesday morning by 2.5 percent.
ICL’s total revenue was $1.44 billion — 18 percent lower than in the same quarter last year, which was $1.76 billion. The net profit for this quarter was $79 million — an 80-percent drop compared with $395 million in the same quarter last year.
ICL officials attribute the significant decline in the net profit to a one-time tax payment and a drop in operational profits in the third quarter. ICL’s tax expenses in the third quarter totaled $152 million, as compared with $78 million in the same quarter last year. The increase in the tax rate during the quarter was influenced mainly by a one-time tax payment of roughly $118 million because of ICL’s decision to release trapped profits and also due to the increase in the corporate tax rate from 25 percent to 26.5 percent.
ICL officials announced that the company was preparing a dual listing of its shares on the New York Stock Exchange. This will lay the financial groundwork for further growth by improving access to international capital markets and improve flexibility in financing acquisitions and mergers.