EANS-News: K+S Aktiengesellschaft / Very successful second quarter 2012: K+S Group significantly boosts revenues and earnings

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quarterly report/6-month report/K+S Aktiengesellschaft

Kassel (euro adhoc) - Kassel, 14 August 2012

Very successful second quarter 2012
K+S Group significantly boosts revenues and earnings

- Very good business performance for potash and magnesium products -
As expected, weak early stocking-up in salt business - Quarterly
revenues up 21 % to EUR 996.5 million - Operating earnings EBIT I
reach EUR 219.8 million (+ 21 %) - Adjusted earnings per share from
continued operations increase by 17.5 % to EUR 0.74 - Outlook for
financial year 2012 confirmed:

- Stable revenues between EUR 3.9 billion and EUR 4.2 billion expected
(2011:
EUR 4.0 billion)
- Operating earnings EBIT I should reach between EUR 820 million and EUR
900
million (2011: EUR 906.2 million)
- Adjusted earnings per share from continued operations expected to be
between EUR 2.85 and EUR 3.15 (2011: EUR 3.77/share)

In the Potash and Magnesium Products business segment of the K+S
Group, a strong overseas business and good early stocking-up in
Europe at the end of the reporting period have led to significant
rates of increase for revenues and earnings in the second
quarter, in comparison to the same period of the previous
year.

"The current demand development for potash and magnesium
products in the markets relevant to us should therefore continue
in the coming months and should cause this business segment to
show even slightly rising operating earnings", says Norbert
Steiner, Chairman of the Board of Executive Directors of K+S
Aktiengesellschaft. "Against this backdrop we should therefore
remain able to significantly mitigate the weather-related strong
decline of the operating earnings in our Salt business segment on
the Group level this year and are confirming our forecasts for
2012 as a whole", Steiner continues.

Positive development of potash fertilizer demand in the second
quarter After there was still cautious early stocking-up of
fertilizers at the start of the year, the demand for potash and
magnesium products developed positively during the second
quarter of 2012. The relatively high price level for
agricultural raw materials offered attractive income prospects for
farmers and therefore an incentive to increase yields per hectare
also through the optimal use of fertilizers. After the production
cuts by North American and Russian producers at the start of
the year, global capacities were again almost completely
utilised in the course of the second quarter. Moreover, after the
conclusion of the potash supply contracts with China at unchanged
terms at the end of the first quarter, international prices for
potassium chloride tended to be firmer and, in the second quarter of
2012, were tangibly above the level of the previous year's quarter.

As expected, early stocking-up in salt sector weak As a result of the
very mild and partly dry weather conditions in Western Europe
at the start of the year, stocks on both the producer and customer
sides are well filled. Consequently, in comparison to the same period
of the previous year, a price decline in the early stocking-up
business of the second quarter of 2012 was observed. While prices
for the tenders for the winter season 2012/13 decreased,
overall volumes in the contracts concluded to date stood at a
relatively good level.

The de-icing salt regions on the East Coast of the United States and
in Canada were also characterised by relatively high stocks due to
the exceptionally mild winter at the start of the year. Most
producers reacted to this situation with cutting back production.
In the de-icing salt regions of the United States, both in the
early stocking-up business in the second quarter and in the tenders
for the winter season 2012/13, there were declines in prices
and volumes, particularly in the Midwest.

K+S Nitrogen stated as discontinued operation due to its sale The
description of the earnings, financial and asset position relates,
if not stated otherwise, to the continued operations of the K+S
Group. Since the reporting on the second quarter of 2011, the COMPO
business and, with the Half- yearly Financial Report H1/12, also K+S
Nitrogen are stated as a "discontinued operation" in accordance
with IFRS. Detailed information can be found in the Notes to the
Half-yearly Financial Report on page 33. The income statement and
the cash flow statement were adjusted accordingly. The balance
sheet stayed unchanged.

Second quarter revenues rise by 21 % At EUR 996.5 million, second
quarter revenues were up EUR 174.8 million or 21 % in comparison to
the previous year. This can be attributed in particular to a
volume-related increase in the Potash and Magnesium Products
business segment. Revenues in the Salt business segment were
slightly up on the figure for the previous year due to currency
effects. In the first half of the year, revenues of the K+S Group
fell slightly by 2 % to EUR 2,077.1 million against the
background of lower revenues in the Salt business segment in the
first quarter due to weather conditions.

In the first six months of the year, 60 % of revenues were
generated in the Potash and Magnesium Products business segment,
followed by Salt (36 %) and the Complementary Business Segments (4
%). In Europe, we generated a share in revenues of
approximately 40 %, followed by North America (26 %), South America
(19 %) and Asia (13 %).

Operating earnings in the second quarter above last year's figures
During the second quarter of 2012, earnings before
interest, taxes, depreciation and amortisation (EBITDA) rose by 16
% to EUR 275.8 million (Q2/11: EUR 237.0 million). In the first
half of the year, EBITDA reached EUR 580.0 million,
representing a decrease of 8 % (H1/11: EUR 627.6 million).

In the second quarter of 2012, operating earnings EBIT
I reached EUR 219.8 million and thus increased by EUR 37.9 million
or 21 % in comparison to the same quarter of the previous year.
At EUR 56.0 million, depreciation and amortisation taken into
account in EBIT I were at about the level of the same quarter of
the previous year (Q2/11: EUR 55.1 million). The Potash and
Magnesium Products business segment managed to significantly
improve its earnings in particular thanks to higher overseas
volumes, while the earnings of the Salt business segment
decreased against the backdrop of a weaker early stocking-up
business for de-icing salt. In the first half of 2012, the K+S
Group achieved operating earnings of EUR 468.6 million. This was 9 %
below the previous year's figure (H1/11: EUR 516.6 million).
At EUR 111.4 million, depreciation and amortisation taken into
account in EBIT I in the first half of the year were at the level of
the same quarter of the previous year (H1/11: EUR 111.0 million).

Adjusted earnings before income taxes improve significantly Taking
into account a weaker financial result due to non-cash,
extraordinary interest expenses for provisions resulting from the
lowering of the discount factor, adjusted earnings before income
taxes for the period under review reached EUR 195.6 million and
were thus EUR 28.8 million or 17 % higher than a year ago. In the
first six months, adjusted earnings before income taxes were EUR
429.3 million (H1/11: EUR 486.2 million).

Adjusted Group earnings from continued operations up by 17% In the
second quarter, adjusted Group earnings from continued operations
rose by EUR 20.7 million or 17 % to EUR 141.2 million. Adjusted
Group earnings from continued operations of the first six months
decreased in comparison to the corresponding period of the
previous year by EUR 46.8 million or 13 % to EUR 310.3 million.

Adjusted earnings per share from continued operations in the second
quarter at EUR 0.74 (Q2/11: EUR 0.63) In the quarter under
review, adjusted earnings per share from continued operations
reached EUR 0.74 and were thus about 18 % above the figure for
the same period last year of EUR 0.63. This was computed on the
basis of 191.40 million no-par value shares, being the average
number of shares outstanding (Q2/11: 191.32 million no-par value
shares). In the first six months of 2012, adjusted earnings per
share from continued operations reached EUR 1.62, a decrease of
13 % after having been EUR 1.87 in the previous year.

Adjusted earnings per share reach EUR 0.79 (Q2/11: EUR 0.15) Adjusted
Group earnings (including discontinued operations) in the
second quarter reached EUR 150.8 million (Q2/11: EUR 29.2 million).
Of this, EUR 9.6 million was attributable to the discontinued
operations of K+S Nitrogen. In the first six months, adjusted
Group earnings amounted to EUR 344.2 million (H1/11: EUR 301.1
million), while EUR 33.9 million was attributable to the discontinued
operations. Adjusted earnings per share (including discontinued
operations) in the quarter under review reached EUR 0.79 (Q2/11:
EUR 0.15). Of this, EUR 0.05 was attributable to the discontinued
operations. Adjusted earnings per share including
discontinued operations of the first six months achieved EUR 1.80
after having been EUR 1.57 in the same period of the previous
year, while EUR 0.18 was attributable to the discontinued
operations.

Outlook 2012: Revenues expected between EUR 3.9 billion and EUR 4.2
billion While in the Potash and Magnesium Products business segment,
on the basis of the currently achieved potash price level, a
moderately increasing revenue development can be assumed, in the
Salt business segment, tangibly lower revenues are expected.
Revenues of the K+S Group should reach a value of between EUR
3.9 billion and EUR 4.2 billion in financial year 2012 (previous
year: EUR 4.0 billion). The revenue forecast assumes an average US
dollar exchange rate of 1.22 USD/EUR for the remaining months. This
corresponds to an average annual rate of 1.26 USD/EUR (previous
average annual rate: 1.33 USD/EUR; 2011: 1.39 USD/EUR).

Operating earnings EBIT I should reach between EUR 820 million and
EUR 900 million EBITDA of the K+S Group should reach a figure of EUR
1,050 million to EUR 1,130 million (previous year: EUR 1,146.0
million) and operating earnings EBIT I between EUR 820 million
and EUR 900 million (previous year: EUR 906.2 million). In the
Potash and Magnesium Products business segment, slightly rising
operating earnings are to be expected (previously: stable). In
comparison to last year, which had benefited from above-average
volumes of de-icing salt, the operating earnings of the Salt
business segment will probably decline strongly.

Group earnings should be in line with the development of operating
earnings Adjusted Group earnings after taxes from continued
operations should be in line with the development of operating
earnings and reach a value of between EUR 540 million and EUR 600
million in 2012 (previous year: EUR 625.6 million). This would
correspond to adjusted earnings per share from continued operations
of about EUR 2.85 to EUR 3.15 (previous year: EUR 3.27).
Taking into consideration the discontinued operations including the
expected accounting profit arising from the divestment of K+S
Nitrogen, adjusted Group earnings after taxes of EUR 630 million
to EUR 690 million are to be assumed (previously: EUR 581.8
million). This would correspond to adjusted earnings per share of
about EUR 3.30 to EUR 3.60 (previous year: EUR 3.04). 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 remaining months of 2012; - a sales volume in the Potash
and Magnesium Products business segment at about the same level as
the previous year (2011: 6.9 million tonnes); - a sales volume of
crystallised salt of 18 to 19 million tonnes (previously: less
than 19; 2011: 22.7 million tonnes), of which a good 9 million
tonnes was de-icing salt (previously: less than 10; 2011: 13.3
million tonnes). For the fourth quarter, this, as customary,
assumes the average of multi-year de- icing salt sales volumes; -
a tangibly weaker financial result (previously: stable) particularly
due to non-cash, extraordinary interest expenses for
provisions for mining obligations resulting from the lowering
of the discount factor; - a slightly higher adjusted Group tax ratio
of 27% to 28% (2011: 25.7%).

Future dividend policy K+S is pursuing an essentially earnings-based
dividend policy. According to this, a dividend payout ratio of
between 40 % and 50 % of adjusted Group earnings after taxes
(including discontinued operations) forms the basis for the
amount of future dividend recommendations to be determined by the
Board of Executive Directors and the Supervisory Board. For 2012,
there are, on the basis of the described earnings
expectations, opportunities for a higher dividend (previous
year: EUR 1.30), since the accounting profit from the
divestment of K+S Nitrogen and the cessation of the adverse effects
from the divestment of the COMPO business should have a
positive impact on Group earnings.

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 Half-yearly Financial Report (H1/2012), a video
message by Norbert Steiner, Chairman of the Board of Executive
Directors of K+S Aktiengesellschaft, about the second quarter of
2012 and up-to-date press photos relating to the K+S Group are
available under http://www.k-plus-s.com/2012h1en.

We are offering a conference call for analysts in English today
at 3 p.m. Norbert Steiner, Chairman of the Board of Executive
Directors, Joachim Felker and Dr. Burkhard Lohr, both Members of
the Board of Executive Directors, will participate in the
conference call. Shareholders, investors, representatives of the
press and all other interested parties are invited to follow the
conference via a live webcast at (http://www.k-plus-s.com/2012h1en)
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: Investor Relations:
Michael Wudonig, CFA Julia Bock, CFA / Kai Kirchhoff
Phone: +49 561 9301 1262 Phone: +49 561 9301 1009 / 1885
Fax: +49 561 9301 1666 Fax: +49 561 9301 2425
michael.wudonig@k-plus-s.com julia.bock@k-plus-s.com /
kai.kirchhoff@k-plus-s.com

Forward-looking statements

This press release contains facts and forecasts that relate to
the future develoment 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 develoments 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:
Michael Wudonig, CFA
Phone: +49 561 9301-1262
Fax: +49 561 9301-1666
michael.wudonig@k-plus-s.com

Juli Bock, CFA / Kai Kirchhoff
Phone: +49 561 9301-1009 / 1885
Fax: +49 561 9301-2425
julia.bock@k-plus-s.com
kai.kirchhoff@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 9301-1100
FAX: +49 (0)561 9301-2425
mail: investor-relations@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