KASSEL (dpa-AFX) - K+S Group (SDFG) reported that its fiscal 2018 EBITDA improved by 5% to 606 million euros from 577 million euros, prior year. The company said its EBITDA was negatively impacted above all by the prolonged heat wave and severe drought in Germany last year, which led to considerable production losses at the Werra plant.
Group adjusted earnings declined 41.1% to 85.4 million euros, from prior year. Adjusted earnings per share was 0.45 euros compared to 0.76 euros. The company said its adjusted earnings declined due to higher interest expenses and the depreciation of the Bethune plant in Canada, which had to be taken into account for a full financial year.
The K+S Group increased revenues for the 2018 financial year by 11% to 4.0 billion euros from 3.6 billion euros, prior year.
In the fourth quarter of 2018, EBITDA of the K+S Group rose by 22% year-on-year to 228 million euros, while revenues rose by 18% to 1.2 billion euros.
For 2019, K+S expects EBITDA to be significantly higher than last year's and in a corridor between 700 million euros and 850 million euros. K+S expects potash production to rise in 2019 compared with the previous year. For the first time since 2013, K+S wants to achieve a positive free cash flow the year.
Burkhard Lohr, Chairman of the Board of Executive Directors of K+S, said: 'I see many positive signals for 2019 and am optimistic as a result. Our EBITDA should increase significantly compared with the previous year.'
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