EANS-News: K+S Aktiengesellschaft / Start of new financial year 2009: Balanced Portfolio Underpins the Strength of K+S

K+S Aktiengesellschaft / Start of new financial year 2009:

Balanced Portfolio Underpins the Strength of K+S

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shares/balance/stock market/finances/companies/Q1 2009

Kassel (euro adhoc) - Kassel, 13 May 2009

Start of new financial year 2009:
Balanced Portfolio Underpins the Strength of K+S

. Very good salt result due to winter of above-average severity
. As expected, fertilizer demand down significantly year on year
. At EUR 1,075.7 million, revenues down 11% year on year
. Operating earnings reach EUR 174 million ((23)%)
. Adjusted earnings per share at EUR 0.74 (Q1/2008: EUR 0.99)
. Outlook for financial year 2009 unchanged

"Our salt activities were able to step into the breach for the
fertilizer business - this is unique compared to our competitors!
Even if our first quarter revenues and earnings were unable to
reach the record levels of a year ago, thanks to our balanced
portfolio of fertilizers and salt, we have achieved a very
satisfactory start to the current financial year," said Norbert
Steiner, chairman of the Board of Executive Directors of K+S
Aktiengesellschaft.

In the first quarter the de-icing salt business was very good both
in Western Europe as well as on the North American east cost in view
of the above-average severity and prolonged duration of the winter.
On some markets, there were even delivery bottlenecks, which the
K+S Group was able to exploit with its customary, large-scale
production flexibility.

By contrast, the fertilizer business was characterised by very low
demand for fertilizers on almost all markets in the first
quarter: Although prices of agricultural products stabilised
again, demand on the part of agriculture remained muted,
against the background of a prolonged period of cold weather in the
northern hemisphere too. In addition, there were sufficient stocks
at the trade sector level and the financial crisis restricted room
for manoeuvre with regard to financing for the entire distribution
chain.

First quarter revenues down about 11% year on year First quarter
revenues were down EUR 137.3 million on the same period last year
and totalled EUR 1,075.7 million. The revenue decline attributable to
volume and structural factors could not be offset by positive price
and currency effects.

Salt business segment revenues almost doubled, which cushioned the effects of
significant revenue declines in the fertilizer business.

About 60% of Group revenues were generated in Europe; with 34%, the Potash and
Magnesium Products business segment accounted for the largest share of
revenues, followed by Nitrogen Fertilizers as well as Salt.

Operating earnings reach EUR 174.0 million ((23)%)

EBIT I for the first quarter of 2009 reached EUR 174.0 million,
after EUR 226.3 million a year ago. The five-fold increase in the
earnings of the Salt business segment could markedly reduce the
effects of the earnings decreases in the Potash and Magnesium
Products and Nitrogen Fertilizers business segments.

Adjusted earnings before and after taxes down year on year

Adjusted earnings before taxes for the first quarter reached EUR
165.6 million representing a decline of EUR 58.4 million or about 26%
on the same period last year.

Adjusted Group earnings after taxes for the first quarter were EUR
122.5 million, down just under 25% on the level of a year ago
(Q1/2008: EUR 162.6 million).

For the quarter under review, adjusted earnings per share amounted to
EUR 0.74 and were thus down EUR 0.25 on the figure for the same
period last year (EUR 0.99).

Outlook for financial year 2009 unchanged Prices of agricultural
products, which fell sharply from the middle of 2008 in the wake of
the financial crisis, have stabilised again in the first quarter of
2009 on a level that meanwhile is markedly above the price levels
for a good number of years, but still does not reflect the
fundamental conditions on agricultural markets. Against this
background, the muted demand for fertilizers can be expected to have
a clear impact on the volume sold by international fertilizer
producers until the middle of the year. In the second quarter,
however, the stocks of fertilizers still available in the trade
sector should be reduced to such an extent that a normalisation of
demand for fertilizers should be able to be assumed for the second
half of the year.

In the salt business, the upcoming early purchase business should
benefit from the severe 2008/2009 winter. In the fourth quarter the
salt business will be influenced, to a significant degree, by
winter weather conditions, too. In this respect, K+S assumes that
sales will be on their average level for many years in the case of
both the European and North American markets.

On the basis of the price level for potash and magnesium products
evident in the first quarter, K+S assumes a tangibly higher average
price level for 2009 as a whole compared with the previous year.
However, K+S expects significantly lower sales, which will almost
offset the aforementioned price effect. While the revenues of
the Nitrogen Fertilizers business segment should be down
significantly, mainly in view of substantial price decreases,
K+S expects significantly higher revenues for the Salt business
sector because of the good start for the de-icing salt business in
the new year.

Overall, revenues of the K+S Group in 2009 should be down
markedly on the previous year. The revenue forecast assumes an
average US dollar exchange rate for 2009 of about 1.30 USD/EUR
(2008: 1.47 USD/EUR).

In 2009, the costs of the K+S Group should decrease only slightly in
comparison to the previous year: As far as personnel expenses are
concerned, the Company expects that the additional costs arising
from the most recent collective agreement pay rise and a slight
increase in the number of personnel will moderately exceed the
savings resulting from short-time working. Energy costs should, by
contrast, be on a lower level than a year ago as a result of price
and volume factors. K+S also sees an easing of material and freight
costs while depreciation/amortisation charges should increase by a
rate in the mid-single- digit percentage range.

For the financial year 2009, K+S therefore estimates significantly
lower EBIT I operating earnings in comparison to the peak
experienced last year. This is primarily due to the already
described decreasing sales volume in the Potash and Magnesium
Products business segment. Even a stronger US dollar exchange
rate and higher earnings from salt against last year are not
inclining us to change this forecast.

Also adjusted Group earnings after taxes should be significantly
lower in 2009 in line with the development of operating earnings.

Experience growth The K+S Group is one of the world's leading
suppliers of speciality and standard fertilizers, plant care as
well as salt products. With its products and brands, K+S offers
its customers a range of needs-based goods and services which
provides growth opportunities in virtually every sphere of daily
life. The K+S Group employs more than 12,000 people and achieved
revenues of just under EUR 5.0 billion in 2008. K+S is quoted on
all German stock exchanges (ISIN: DE0007162000, symbol: SDF) and
listed on the DAX® share index.

Note to editors: You can download this press release as well as the
Q1/09 quarterly report from

our website www.k-plus-s.com. In addition, you can follow the speech given by
Norbert Steiner, chairman of the Board of Executive Directors of K+S
Aktiengesellschaft, at today's Annual General Meeting in Kassel live on the
website from 10 a.m.; the presentation documents will also be available on the
website.

Conference Call with analysts
On the occasion of the publication of the figures for the first quarter of

2009, on 14 May 2009, Norbert Steiner, chairman of the Board of
Executive Directors, as well as Joachim Felker, member of the
Board of Executive Directors of K+S Aktiengesellschaft, will answer
questions from analysts during a conference call. From 3 p.m., you
can follow this conference call live on the Internet at
www.k-plus-s.com or by telephone by dialling +49.40. 37707.9033.

Your contact persons:

Press:
Oliver Morgenthal
Phone: +49 561 9301-1047

Fax: +49 561 9301-2160
oliver.morgenthal@k-plus-s.com

Investor Relations:
Christian Herrmann
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, actual events may deviate from those expected at the
present time.

|K+S Group at a Glance | | | | | | |
|1st Quarter 2009 | | | | | | |
| | | |Q1 | |Q1 | | |
|All figures in accordance with | |Jan - Mar | |Jan - Mar| | |
|IFRSs | | | | | | |
| | | |2009 | |2008 | |Change |
| | | |EUR million | |EUR million| |in % |
| | | | | | | | |
|Revenues | |1,075.7 | |1,213.0 | |(11.3) |
| | | | | | | | |
| |Potash and Magnesium Products | |366.0 | |522.5 | |(30.0) |
| |Nitrogen Fertilizers | |342.1 | |488.4 | |(30.0) |
| |Salt | |338.3 | |170.3 | |+98.6 |
| |Complementary Business Segments| |29.1 | |31.7 | |(8.2) |
| |Reconciliation | |0.2 | |0.1 | |+100.0 |
| | | | | | | | |
|Operating earnings (EBIT I) | |174.0 | |226.3 | |(23.1) |
| | | | | | | | |
| |Potash and Magnesium Products | |97.0 | |170.9 | |(43.2) |
| |Nitrogen Fertilizers | |8.1 | |42.6 | |(81.0) |
| |Salt | |80.2 | |14.7 | |+445.6 |
| |Complementary Business Segments| |2.0 | |7.1 | |(71.8) |
| |Reconciliation | |(13.3) | |(9.0) | |(47.8) |
| | | | | | | | |
|Earnings after hedging transactions |152.9 | |118.6 | |+28.9 |
|and derivatives no longer in operation| | | | | |
|(EBIT II) | | | | | |
| | | | | | | | |
|Earnings before income taxes | |144.5 | |116.3 | |+24.2 |
| | | | | | | | |
|Earnings before income taxes, | |165.6 | |224.0 | |(26.1) |
|adjusted1) | | | | | | |
| | | | | | | | |
|Group earnings after taxes | |107.3 | |84.8 | |+26.5 |
| | | | | | | | |
|Group earnings after taxes, adjusted1)| |122.5| |162.6 | |(24.7) |
| | | | | | | | |
|Earnings per share, adjusted |0.74 | |0.99 | |(25.3) |
|(EUR)1), 2) | | | | | |
| | | | | | | | |
|Capital expenditure3) | |29.1 | |24.2 | |+20.2 |
| | | | | | | |
|Employees as of 31. March (number)| |12,334 | |12,141 | |+1.6 |
| of which trainees (number) | |516 | |509 | |+1.4 |
| |
|1) the adjusted figures only contain the result from hedging already |
|realised during the current |
|period. By contrast, changes in the market value of derivatives still |
|outstanding are not taken into account. The effects on deferred and |
|cash taxes are also eliminated. Q1/2009 tax rate: 27.9% (Q1/2008: |
|27.7%). |
|2) adjusted to the share split in the ratio 1:4 (entered in Commercial|
|Register: 24 June 2008; technical execution: 21 July 2008) |
|3) for or in connection with intangible assets as well as property, |
|plant and equipment |

end of announcement euro adhoc
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ots Originaltext: K+S Aktiengesellschaft
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Press:

Oliver Morgenthal

Phone: +49 561 9301-1047

Fax: +49 561 9301-2160

oliver.morgenthal@k-plus-s.com

Investor Relations:

Christian Herrmann

Phone: +49 561 9301-1460

Fax: +49 561 9301-2425

christian.herrmann@k-plus-s.com

K+S Aktiengesellschaft

Communications

P.O. Box 10 20 29, 34111 Kassel, Germany

Bertha-von-Suttner-Str. 7, 34131 Kassel

www.k-plus-s.com

__________________________________________________________

Chairman of the Supervisory Board: Dr. Ralf Bethke

Board of Executive Directors: Norbert Steiner (Chairman), Joachim Felker, Gerd
Grimmig, Dr. Thomas Nöcker

Registered Office: Kassel

Commercial Register: Kassel HRB 2669

Branche: Chemicals
ISIN: DE0007162000
WKN: 716200
Index: DAX, Midcap Market Index, CDAX, Classic All Share, HDAX,
Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / regulated dealing
Hamburg / regulated dealing
Stuttgart / regulated dealing
Düsseldorf / regulated dealing
Hannover / regulated dealing
München / regulated dealing