SQM Reports Earnings For The Second Quarter 2014

SANTIAGO, Chile, Aug. 27, 2014 /PRNewswire/ -- Sociedad Quimica y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A) reported today earnings for the six months ended June 30, 2014 of US$152.1 million (US$0.58 per ADR), a decrease from US$259.2 million (US$0.98 per ADR) for the six months ended June 30, 2013. Gross Margin² reached US$300.2 million (28.4% of revenues) for the six months ended June 30, 2014, lower than US$426.7 million (35.9% of revenues) recorded for the six months ended June 30, 2013. Revenues totaled US$1,056.4 million for the six months ended June 30, 2014, representing a decrease of 11.2% compared to US$1,189.9 million reported for the six months ended June 30, 2013.

The Company also announced earnings for the second quarter of 2014, reporting net income of US$71.1 million (US$0.27 per ADR) compared to US$107.4 million (US$0.41 per ADR) for the second quarter of 2013. Gross Margin for the second quarter of 2014 reached US$145.3 million, lower than the US$187.8 million recorded for the second quarter of 2013. Revenues totaled US$522.3 million, a decrease of approximately 7.8% compared to the second quarter of 2013, when revenues amounted to US$566.5 million.

SQM's Chief Executive Officer, Patricio Contesse, stated, "The first half of 2014 has presented us with significant challenges within both the fertilizer and chemical markets. In the potash market, prices were over 20% lower than prices seen during the first half of last year; however, prices stabilized during the second quarter of 2014. We are seeing signs that prices may begin to recover in the coming months, and we expect SQM's sales volumes to be higher than the ones seen in 2013. In any case our cost position allows us to remain very competitive in this market. In our specialty plant nutrition business line, we see demand growth and remain optimistic about our strong position in the potassium nitrate market."

"While demand growth in the iodine market looks slightly stronger than demand growth seen in 2013, prices are decreasing. Prices for the first half of 2014 were almost 20% lower than average prices seen during the second half of 2013. As stated on the first quarter conference call, we are striving to get back to approximately 30% market share levels in the iodine market in the medium term. The lithium market demand growth is expected to reach 10% in 2014 – we also look forward to higher volumes this year compared to last year."