SQM Reports Earnings For The Third Quarter 2014

SANTIAGO, Chile, Nov. 18, 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 nine months ended September 30, 2014 of US$218.4 million (US$0.83 per ADR), a decrease from US$398.1 million (US$1.51 per ADR) for the nine months ended September 30, 2013. Gross margin reached US$442.6 million (29.1% of revenues) for the nine months ended September 30, 2014, lower than US$575.2 million (33.6% of revenues) recorded for the nine months ended September 30, 2013. Revenues totaled US$1,522.8 million for the nine months ended September 30, 2014, representing a decrease of 11.0% compared to US$1,710.9 million reported for the nine months ended September 30, 2013.

The Company also announced earnings for the third quarter of 2014, reporting net income of US$66.4 million (US$0.25 per ADR) compared to US$138.9 million (US$0.53 per ADR) for the third quarter of 2013. However, this comparison is affected by the sale of royalties for the Antucoya mining project during the third quarter of 2013, which had a one-time, after-tax effect of US$67 million on net income. Gross margin for the third quarter of 2014 reached US$142.4 million, lower than the US$148.5 million recorded for the third quarter of 2013. Revenues totaled US$466.4 million, a decrease of approximately 10.5% compared to the third quarter of 2013, when revenues amounted to US$521.1 million.

SQM's Chief Executive Officer, Patricio Contesse, stated, "Despite the pricing pressure we have seen in the iodine and potash industries, which has impacted revenues, this quarter's EBITDA margin is the highest we have reported for the last six quarters. EBITDA was higher for the third quarter of this year than it was for the third quarter of last year, even in the face of lower iodine and potash prices. This is proof of the success of our cost reduction efforts."

"Iodine prices have continued the downward trend we saw in the first half of the year. However, as we mentioned last quarter, we have seen some price recovery in the potash market, and our sales volumes are up with respect to 2013. Supply shortages in the potassium sulfate market have had a positive effect on pricing and have also benefited demand for potassium nitrate, as an alternative chlorine-free fertilizer. In the lithium market, demand continues to be driven by batteries, and we expect to see less new supply from other producers than we previously anticipated."