EANS-News: K+S Aktiengesellschaft / Robust fertilizer business K+S Group confirms outlook for 2012

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quarterly report/Company Information/K+S Aktiengesellschaft

Kassel (euro adhoc) - Kassel, 9 May 2012

Robust fertilizer business
K+S Group confirms outlook for 2012

- Best first quarter for potash and magnesium products - As
expected, de-icing salt business significantly below high figures for
previous year due to weather conditions - At EUR 1.44 billion,
quarterly revenues 12 % below previous year - Operating earnings
EBIT I reach EUR 281.1 million in the first quarter (Q1/11: EUR
368.4 million) - Adjusted earnings per share at EUR 1.01 (Q1/11: EUR
1.37) - Outlook for fiscal year 2012 unchanged: stable revenues and
moderate decline in operating earnings expected

While the fertilizer business started well in 2012, the de-icing
salt business was exceptionally weak due to weather conditions. As
expected, this led to the K+S Group not being able to achieve the
high figures of the previous year for revenues and earnings in the
first quarter of 2012.

"Despite challenging framework conditions at the start of the year,
our potash fertilizer business achieved a very good result",
says Norbert Steiner, Chairman of the Board of Executive Directors
of K+S Aktiengesellschaft on the occasion of the Company's Annual
General Meeting in Kassel. "We were thus able to significantly
mitigate the sharp decline for de-icing salts which was
entirely due to weather conditions. After the demand for fertilizers
started to recover at the end of the first quarter and should
further continue during the course of the year, we still see
good prospects and are holding to the forecasts for 2012 as a
whole. This year too, we should earn a high premium on our cost of
capital", Steiner continues.

Rising fertilizer demand at the end of the first quarter In the wake
of the European sovereign debt crisis, the trade sector was more
cautious in its early stocking-up of fertilizers at the end of
2011 and the beginning of 2012. Moreover, winterkill damage
resulting from very dry and cold weather led to a postponement
of the European spring season. However, throughout the first
quarter, the price level for agricultural raw materials continued
to offer attractive income prospects for farmers and therefore
an incentive to increase yields per hectare also through the
optimal use of fertilizers. Against this background, at the end of
the first quarter, there was an upturn in demand for potash
fertilizers, especially after the contractual negotiations with
China for the first half of 2012 were concluded with unchanged
terms in mid-March. The global market price level for potassium
chloride was tangibly higher in the first quarter of 2012 than in
the same quarter of the previous year. In comparison to the
average of the fourth quarter of 2011, prices moderately decreased
in some regions; however, since the conclusion of the contracts
in China, international potash prices tend to get stronger again.

For nitrogen fertilizers too, in Europe, the first two months of the
year were marked by a certain buying restraint, until demand
recovered towards the end of the first quarter. The prices for
nitrogen fertilizers were moderately higher than the average for
the same quarter of the previous year, but they decreased slightly
compared to the average for the fourth quarter of 2011 as a result
of lower input costs for ammonia.

Unusually weak demand for de-icing salt As a result of the very mild
and partly dry weather conditions at the beginning of the year, the
demand for de-icing salt in Western Europe was unusually weak,
particularly compared to the above-average first quarter of 2011,
but also compared to the long-term average sales volume. In the
first quarter of 2012, the price level was slightly higher than in
the same quarter of the previous year and was relatively stable
compared to the average for the fourth quarter of 2011.

On the US East Coast, too, the demand for de-icing salt was very
weak due to the unusually mild winter, and it was below average
in the de-icing salt regions of Canada. Most producers responded
to high inventories by cutting back production. A slight reduction
in price was noted particularly on the US East Coast and in other
de-icing salt regions of the USA.

First-quarter revenues below figure for previous year due to weather
conditions Revenues in the first quarter amounted to EUR
1,438.1 million, a decrease of EUR 188.8 million or 12 % relative
to the figure for the previous year. This decrease is
attributable exclusively to lower revenues in the Salt business
segment due to weather conditions. Revenues in the Potash and
Magnesium Products business segment were slightly above the figure
for the previous year, revenues in the Nitrogen Fertilizers
business segment increased by approximately 10 %. In the first
three months of the year, 40 % of revenues were generated in the
Potash and Magnesium Products business segment, followed by Salt
(32 %) and Nitrogen Fertilizers (25 %). In Europe, K+S generated
a share in revenues of approximately 50 %, followed by North
America (25 %), South America (12 %) and Asia (11 %).

Operating earnings below previous year due to salt business In the
first quarter of 2012, earnings before interest, taxes, depreciation
and amortisation (EBITDA) fell by 21 % to EUR 337.0 million (Q1/11:
EUR 424.9 million).

In the first quarter of 2012, operating earnings EBIT I reached
EUR 281.1 million and were thus EUR 87.3 million (24 %) lower than
in the same quarter of the previous year. The Potash and
Magnesium Products business segment was able to further improve
its earnings and achieved its best first-quarter earnings yet. By
contrast, in the Nitrogen Fertilizers business segment,
earnings were slightly lower than the peak figure of the previous
year. As a result of the weak de-icing salt business, operating
earnings of the Salt business segment decreased very sharply
relative to the extraordinarily good result for the same quarter of
the previous year.

Adjusted earnings before and after taxes correspondingly lower In the
first quarter, adjusted earnings before income taxes reached EUR
266.1 million and were, in line with the development of operating
earnings, EUR 87.1 million or 25 % below the figure for the previous
year. Adjusted Group earnings decreased in the first quarter by EUR
68.2 million or 26 % to EUR 193.4 million.

Adjusted earnings per share in the first quarter at EUR 1.01 (Q1/11:
EUR 1.37) Adjusted earnings per share in the quarter under review
amounted to EUR 1.01 and were thus approximately 26 % lower than the
figure for the previous year of EUR 1.37. They were computed on the
basis of 191.40 million no-par value shares, being the average
number of shares outstanding (Q1/11: 191.20 million no-par value
shares).

Outlook unchanged: Revenues stable, moderate decline in operating
earnings In the financial year 2012, revenues of the K+S Group should
remain stable in comparison to the previous year. While in the
Potash and Magnesium Products business segment, on the basis of
the currently achieved potash price level, a moderately, and in
the Nitrogen Fertilizers business segment, a slightly
increasing development of revenues can be assumed, in the Salt
business segment tangibly (previously: moderately) lower revenues
are expected. The revenue forecast assumes an average US
dollar exchange rate of 1.33 USD/EUR (previously: 1.32
USD/EUR); 2011: 1.39 USD/EUR).

In the financial year 2012, operating earnings EBIT I of the K+S
Group should decrease moderately in comparison to last year's
figure. In the Potash and Magnesium Products business segment,
it is assumed that operating earnings could again approach
those of the good earnings achieved last year. The Nitrogen
Fertilizers business segment should be able to achieve earnings at
the level of the previous year. In comparison to last year, which
benefited from above-average volumes of de-icing salt, operating
earnings of the Salt business segment will probably decline
strongly.

Moderately declining Group earnings expected The adjusted Group
earnings after taxes should also decline moderately in 2012 in line
with the development of operating earnings. This estimate is based
not only on the effects described for revenues and operating
earnings, but also on:

- the expectation of consistently attractive agricultural prices,
- the customary, purely technical forecast policy, which maintains the
currently achieved potash price level unchanged for the remainder of 2012,
- a sales volume in the Potash and Magnesium Products business segment at
about the same level as in the previous year (2011: 6.9 million tonnes),
- a sales volume of crystallised salt of less than 19 million tonnes
(previously: a good 19 million tonnes; 2011: 22.7 million tonnes), of
which less than 10 million tonnes de-icing salt (previously: about 10
million tonnes; 2011: 13.3 million tonnes). For the fourth quarter, this,
as usual, assumes the average of multi-year de-icing salt sales volumes.
- a largely unchanged financial result,
- a slightly higher adjusted Group tax ratio of 27 % to 28 % (2011: 26.1
%).
-

This outlook still includes the Nitrogen business segment, since
the sale of K+S Nitrogen was announced after the outlook was set up
on 2 May 2012. However, the sale of K+S Nitrogen does not change the
outlook statement: stable revenues and moderately decreasing
operating earnings can still be expected for the year 2012 compared
to the pro-forma adjusted year 2011.

Experience growth The K+S Group is one of the world's leading
suppliers of standard and speciality fertilizers. In the salt
business, K+S is the world's leading producer with sites in
Europe as well as North and South America. K+S offers a
comprehensive range of goods and services for agriculture,
industry, and private consumers which provides growth opportunities
in virtually every sphere of daily life. The K+S Group employs more
than 14,000 people. The K+S share - the commodities stock on the
German DAX index - is listed on all German stock exchanges (ISIN:
DE000KSAG888, symbol: SDF). More information about K+S can be found
at www.k-plus-s.com.

Note to editors The Quarterly Financial Report and the K+S Q1/12
Facts & Figures are available at www.k-plus-s.com/2012q1en on our
website.

Today's Annual General Meeting of K+S Aktiengesellschaft will be
transmitted live on the Internet at www.k-plus-s.com/agm starting
from 10 a.m. until the end of the speech by the chairman of the
Board of Executive Directors. The speech and presentation will be
available there for download starting from 10:00 a.m., as will a
video summary of the speech by the chairman of the Board of
Executive Directors starting from about 2 p.m.

Current image material relating to the K+S Group can be downloaded
from our website. Photos of today's Annual General Meeting are
also available on the Internet at www.k-plus-s.com/agm starting
from about 11 a.m.

A conference call in English will take place on 10 May 2012 at 3
p.m. Norbert Steiner, chairman of the Board of Executive
Directors and Joachim Felker, member of the Board of
Executive Directors, will participate in it. Representatives
of the press, shareholders, investors and all other interested
parties are invited to follow the conference via a live webcast at
www.k-plus- s.com/2012q1en or by phone under +49-69-71044-5598. The
conference is being recorded and will also be available as a
podcast.

Your contact persons:

Press:
Michael Wudonig, CFA

Phone: +49 561 9301-1262
Fax: +49 561 9301-1666
michael.wudonig@k-plus-s.com

Investor Relations:

Christian Herrmann, CFA
Phone: +49 561 9301-1460
Fax: +49 561 9301-2425
christian.herrmann@k-plus-s.com

Forward-looking statements This press release contains facts and
forecasts that relate to the future development of the K+S Group
and its companies. The forecasts are estimates that we have made
on the basis of all the information available to us at this moment
in time. Should the assumptions underlying these forecasts prove not
to be correct or risks arise - examples of which are mentioned in the
risk report - actual developments and events may deviate from
current expectations. Outside statutory disclosure provisions, the
Company does not take any obligation to update the statements
contained in this press release.

Further inquiry note:
Press:
Michael Wudonig, CFA
Phone: +49 561 9301-1262
Fax: +49 561 9301-1666
michael.wudonig@k-plus-s.com

Investor Relations:
Christian Herrmann, CFA
Phone: +49 561 9301-1460
Fax: +49 561 9301-2425
christian.herrmann@k-plus-s.com

end of announcement euro adhoc
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company: K+S Aktiengesellschaft
Bertha-von-Suttner-Straße 7
D-34131 Kassel
phone: +49 (0)561 9301-1460
FAX: +49 (0)561 9301-2425
mail: christian.herrmann@k-plus-s.com
WWW: http://www.k-plus-s.com
sector: Chemicals
ISIN: DE000KSAG888
indexes: DAX, Midcap Market Index, CDAX, Classic All Share, HDAX, Prime All
Share
stockmarkets: regulated dealing: Hannover, Berlin, München, Hamburg, Düsseldorf,
Stuttgart, regulated dealing/prime standard: Frankfurt
language: English