UPDATE 1-Israel Chemicals profit falls, plans New York listing

Wed Nov 13, 2013 3:14am EST
 
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* Q3 adjusted net profit $196 mln vs $188.4 mln forecast

* Revenue $1.45 bln vs $1.46 bln forecast

* Produced 1.27 mln tonnes of potash in Q3, up 9 pct

By Tova Cohen

TEL AVIV, Nov 13 (Reuters) - Weakness in the potash market led to a decline in third-quarter earnings at Israel Chemicals (ICL), which said it was preparing a dual listing of its shares on the New York Stock Exchange.

ICL, the world's sixth-largest producer of the crop nutrient potash, attributed lower 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 fertilisers".

The announcement by Russia's Uralkali in July that it would quit one of the world's two largest potash cartels triggered a decline in prices, which led to a delay in purchases by customers in anticipation of more price reductions. Towards the end of the third quarter, there was some recovery in demand which continued in October, ICL said.

ICL's potash production increased by 9 percent in the third quarter to 1.27 million tonnes due to greater production efficiency at the company's mine in England.

ICL, a subsidiary of holding company Israel Corp, said the listing of its shares in New York would aid its growth by improving access to international financial markets and providing flexibility in financing mergers and acquisitions. It did not provide further details of its plans.   Continued...