SQM Reports Earnings for the First Nine Months of 2009

SANTIAGO, Chile, Oct. 27 /PRNewswire-FirstCall/ -- Sociedad Quimica y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A) reported today earnings for the first nine months of 2009 of US$251.7 million (US$0.96 per ADR), a decrease of 34.0% with respect to the same period of 2008, when earnings totaled US$381.1 million (US$1.45 per ADR). Operating income reached US$342.0 million (32.6% of revenues), 29.0% lower than the US$481.4 million (35.0% of revenues) recorded during the first nine months of 2008. Revenues totaled US$1,049.2 million for the first nine months, representing a decrease of 23.8% over the US$1,376.2 million reported in the same period of 2008.

Third quarter earnings declined to US$82.3 million (US$0.31 per ADR) compared to the third quarter 2008 figure of US$190.6 million (US$0.72 per ADR). Operating income for the third quarter reached US$110.1 million, lower than the US$239.1 million recorded for the same period of 2008. Revenues totaled US$383.5 million, lower than the third quarter 2008 revenues, which amounted to US$589.1 million.

Patricio Contesse, SQM's Chief Executive Officer, stated, "Although quarterly earnings are significantly lower than those recorded in the third quarter last year, this decline is overstated given that 3Q08 was the highest quarter ever recorded in company history. Additionally, net income recorded in 3Q09 is 98% higher than net income posted in 3Q07, making 3Q09 earnings the second highest third quarter earnings reported."

He continued, "We believe that markets have bottomed out across all of our business lines and are beginning to turn around. The recovery process is slow and will most likely remain slow in the following year. In the case of potassium-related fertilizers, prices in the second half of this year have been lower than in the first half, so it is reasonable to expect that average prices for 2010 for all of our fertilizer products should be lower than average prices in 2009. However, we expect moderately higher volumes from our Specialty Plant Nutrition division and significantly higher potash volumes for next year, in line with the announced capacity increase."

Mr. Contesse commented, "In the case of iodine and lithium, demand has followed a similar trend compared to our specialty fertilizer business, and we have observed signs that indicate that demand has started to recover. Considering that most of our clients have adopted conservative purchasing policies, we expect demand to recover slowly during the next year."

Mr. Contesse concluded, "The underlying fundamentals in all of our businesses remain strong, and we are confident about the medium- and long-term prospects for all of them. We believe that by the end of 2010 demand levels for all of our businesses should reach pre-crisis levels and begin to grow at the high growth rates observed before the economic crisis. The year 2010 will be a transition year that should be followed by a growth period positively influenced by our increased potash production, higher demand for lithium battery technologies, increased demand of nitrates for solar energy storage and the potentially better pricing conditions that should accompany demand growth."

For the complete version of this press release, please visit our Web site: http://www.sqm.com/.

SQM is an integrated producer and distributor of specialty plant nutrients, iodine and lithium. Its products are based on the development of high quality natural resources that allow the Company to be leader in costs, supported by a specialized international network with sales in over 100 countries. SQM's development strategy aims to maintain and strengthen the Company's world leadership in its three core businesses: Specialty Plant Nutrition, Iodine and Lithium.

For further information, contact: Patricio Vargas, 56-2-4252274 / [e-mail] Mary Laverty, 56-2-4252074 / [e-mail] Carolina Rojas, 56-2-4252250 / [e-mail]

For media inquiries, contact: Fernanda Guerra, 56-2-4252027 / [e-mail]

Statements in this press release concerning the Company's business outlook, future economic performances, anticipated profitability, revenues, expenses, or other financial items, anticipated cost synergies and product or service line growth, together with other statements that are not historical facts, are "forward-looking statements" as that term is defined under Federal Securities Laws.

Any forward-looking statements are estimates, reflecting the best judgment of SQM based on currently available information and involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. Risks, uncertainties, and factors that could affect the accuracy of such forward-looking statements, are identified in the public filing made with the Securities and Exchange Commission, and forward-looking statements should be considered in light of those factors.

SQM

CONTACT: Patricio Vargas, +011-56-2-4252274, [e-mail], or
Mary Laverty, +011-56-2-4252074, [e-mail], or Carolina Rojas,
+011-56-2-4252250, [e-mail]; or Media: Fernanda Guerra,
+011-56-2-4252027, [e-mail], all of SQM

Web site: http://www.sqm.com/