K+S Group (SDFG) reported Group earnings, adjusted, of 130.5 million euros or 0.68 euros per share in fiscal 2016 compared to 542.3 million euros or 2.83 euros per share, prior year. The operating earnings (EBIT I) decreased significantly to 229 million euros from 782 million euros.
In the 2016 fiscal year, revenues decreased by approximately 17 percent to 3.5 billion euros from 4.2 billion euros, prior year. The company said the decrease in revenue was mainly due to a lower average price level in the Potash and Magnesium Products business unit and the severe production limitations at the Werra potash plant.
The Board of Executive Directors and Supervisory Board of K+S Group intend to propose a dividend of 0.30 euros per share at the AGM on May 10, 2017, which corresponds to a pay-out ratio of 44 percent.
Looking forward, the Group expects revenues, operating earnings EBITDA and EBIT I to increase tangibly in fiscal 2017 as compared to the previous year's values. However, K+S noted that possible production limitations during longer low-water periods in the Werra may lead to significant deviations from this assessment.
K+S remains optimistic to achieve its Group EBITDA target of around 1.6 billion euros in 2020. The 'Salt 2020' strategy is on track to reach operating earnings (EBIT I) to more than 250 million euros by 2020, and EBITDA of over 400 million euros, assuming a normal winter.
by RTT Staff Writer
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