EANS-News: K+S Aktiengesellschaft / Successful first half of 2011 K+S continues growth trend in second quarter too

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Financial Figures/Balance Sheet/6-month report

Kassel (euro adhoc) - Kassel, 11 August 2011

Successful first half of 2011
K+S continues growth trend in second quarter too

• Persistent high demand leads to rising fertilizer prices worldwide
• COMPO disclosed as discontinued operation due to its sale •
Quarterly revenues rise by 11 % to EUR 1.05 billion (Q2/2010: EUR
948.1 million) • Second quarter operating earnings increase by 38
% to EUR 191.9 million (Q2/2010: EUR 138.9 million) • Adjusted
earnings per share from continued operations rise to EUR 0.66
(Q2/2010: EUR 0.45) • Outlook 2011:

- Significant increase in revenues expected to between EUR 5.00 billion and
EUR 5.30 billion (2010: EUR 4.63 billion)
- Operating earnings will probably rise to between EUR 0.95 billion and EUR
1.05 billion (2010: EUR 714.5 million)
- Adjusted earnings per share from continued operations expected to be
between EUR 3.40 and EUR 3.75 (2010: 2.34 EUR/share); taking into
consideration the discontinued operations, about EUR 2.95 to EUR 3.30
(2010:
EUR 2.33)

The K+S Group continued its positive business development in
the second quarter. It proved possible to significantly increase
revenues and earnings in this period too.

"Thanks to our strong fertilizer business we were able to
significantly increase revenues and earnings of the K+S Group also
in the second quarter compared to the previous year," says Norbert
Steiner, Chairman of the Board of Executive Directors of K+S
Aktiengesellschaft. "The positive development will probably
continue in the second half of the year as well. We are
therefore expecting significantly increasing revenues and a
strong improvement in operating earnings for the year 2011 as a
whole," Steiner continues.

Continued positive environment in the Fertilizer business sector The
second quarter of 2011 was characterised by strong demand for
fertilizers. The high level of agricultural prices favoured the
income prospects of the agricultural sector, so that there was a
significant incentive to raise yields per hectare through the
increased use of fertilizers. For potash and magnesium products,
this resulted in a very high utilisation of production
capacities throughout the world. This environment favoured the
development of prices for potassium chloride. In Europe, during
the second quarter, K+S implemented the price increase to 335
EUR/tonne for granulated potassium chloride announced in
mid-March, and announced a further price increase of 10 EUR/tonne to
363 EUR/tonne in mid-June. Due to existing supply commitments,
price increases in Europe currently become effective with a delay
of six to eight weeks.

The utilisation of nitrogen fertilizer plants was also very high in
the second quarter on a global basis. While demand for complex
fertilizers recovered, the pronounced drought in Europe at the
start of the quarter resulted in temporary decreases in demand for
straight nitrogen fertilizers. The prices for nitrogen fertilizers
were at a significantly higher level compared to the previous
year´s quarter.

Strong stocking-up business in the Salt business sector In the
Western European stocking-up business, the above-average wintry
weather in the 2010/11 season led to strong demand for de-icing
salt. It proved possible to raise the price level in the already
concluded contracts for the winter season 2011/12 significantly.
The start to the pre-stocking business came relatively early on
the East Coast of the United States. In Canada too, demand for
de-icing salt improved in the second quarter in comparison to the
same period of the previous year. North American customers´
inventories were at a normal level in the second quarter. However,
there were slight price declines in the existing tenders. The demand
for food grade salt in Europe and North America proved to be in
good shape in the second quarter too. In South America, the market
for food grade salt stabilised.

COMPO stated as a "discontinued operation" If not stated otherwise,
the description of the earnings, financial and asset position
relates to the continued operations of the K+S Group without COMPO.
In accordance with IFRS, due to its sale, COMPO is stated as a
"discontinued operation" (detailed information about the disposal can
be found in the Notes to the Half-yearly Financial Report on page
34). The income statement and the cash flow statement of the
previous year were restated accordingly.

Second quarter revenues rise by 11 % At EUR 1,049.8 million,
second-quarter revenues were up EUR 101.7 million or 11 % on the
figure for the same period last year. This increase is attributable
to price and volume factors. The Potash and Magnesium Products
and Nitrogen Fertilizers business segments achieved tangible
and significant revenue increases respectively, after the
prices for fertilizers increased in comparison to the same
quarter last year. The Salt business segment managed to increase
its revenues slightly due to volume factors. Revenues in the first
six months of the year rose in particular due to price factors by 14
% and reached EUR 2,676.7 million.

In the first six months of the year, 40 % of revenues were
generated in the Potash and Magnesium Products business segment,
followed by Salt (36 %) and Nitrogen Fertilizers (21 %). The
regional distribution of Group revenues continues to be very
balanced. Thus, about 49 % of total revenues were generated
in Europe and 51 % overseas.

Operating earnings have risen strongly During the second quarter
of 2011, earnings before interest, taxes, depreciation and
amortisation (EBITDA) rose by 25 % to EUR 247.5 million. In the
first six months, EBITDA achieved EUR 672.4 million, an increase of
29 % (H1/10: EUR 520.8 million).

In the second quarter of 2011, operating earnings EBIT
I reached

EUR 191.9 million and were able to increase by EUR 53.0 million or 38 %
in
comparison to the same quarter of the previous year. At EUR 55.6
million,
depreciation and amortisation taken into account in EBIT I decreased by
EUR

3.7 million compared to the previous year´s figure, which had been
adversely affected by special depreciation. The Potash and
Magnesium Products business segment was able to strongly improve
its result year on year. The significantly higher potash price
level was the decisive factor here. In the Nitrogen
Fertilizers business segment, rising prices could more than make up
for higher input costs. Against this backdrop, earnings rose by 5
%. The Salt business segment achieved a lower result than in the
previous year, which, however, had been favoured by non-recurrent
effects in the area of provisions of EUR 16.2 million. In the
first six months of 2011, total operating earnings of EUR 560.3
million were achieved. This exceeded the previous year´s figure
(H1/10: EUR 398.5 million) by 41 %. At EUR 112.1 million, the
depreciation taken into account in the first half of the year was
EUR 10.2 million below the figure for the previous year, which had
been adversely affected by special effects.

Adjusted earnings before income taxes improve strongly The adjusted
earnings before income taxes amounted to EUR 176.6 million in the
second quarter. It proved possible to increase them by EUR 58.1
million or 49 % in comparison to the same period of the previous
year. In the first six months, adjusted earnings before income taxes
amounted to EUR 529.8 million (H1/10: EUR 348.8 million).

Adjusted Group earnings from continued operations increase strongly
It proved possible to increase adjusted Group earnings from
continued operations by EUR 40.9 million or 48 % to EUR 126.8
million during the second quarter. In the first half of the year,
they increased in comparison to the corresponding period of the
previous year by EUR 132.0 million or 51 % to EUR 388.4 million.

Adjusted earnings per share from continued operations in the second
quarter at EUR 0.66 (Q2/10: EUR 0.45) per share For the quarter
under review, adjusted earnings per share from continued
operations amounted to EUR 0.66 and were thus about 47 % higher than
the figure for a year ago of EUR 0.45. They were computed on the
basis of 191.32 million no- par value shares, being the average
number of shares outstanding (Q2/10: 191.33 million no-par value
shares). In the first half of 2011, adjusted earnings per share
from continued operations reached EUR 2.03, an increase of 52% after
having been EUR 1.34 in the previous year.

Sale of COMPO adversely affects adjusted Group earnings in second
quarter Adjusted Group earnings (including discontinued
operations) in the second quarter reached EUR 29.2 million
(Q2/10: EUR 97.5 million). The discontinued business operations
of COMPO, included in this, accounted for EUR (97.6) million which
consist of the impairment loss as at 30 June 2011 of EUR 104.0
million and the net result of COMPO of EUR 6.4 million. In the
first half of the year, adjusted Group earnings amounted to EUR
301.1 million (H1/10: EUR 273.3 million), while EUR (87.3) million
were attributable to the discontinued operations. For the quarter
under review, adjusted earnings per share (including discontinued
operations) amounted to EUR 0.15 and were thus lower than the figure
of EUR 0.51 a year ago. The discontinued operations of COMPO
accounted for EUR (0.51). Adjusted earnings per share (including
discontinued operations) of the first half of the year achieved EUR
1.57 (H1/10: EUR 1.43), while EUR (0.46) were attributable to the
discontinued operations of COMPO (detailed information about the
disposal of COMPO can be found in the Notes to the Half-yearly
Financial Report on page 34). Outlook 2011: Significant rise
in revenues and strong rise in earnings anticipated After the
normalisation of demand for fertilizer in 2010, a further increase
in demand in the current year is expected. Although the
prices of some agricultural products decreased in June from
having been very high, they remain at a level, which should favour
the income prospects of the agricultural sector and thus offer an
incentive to increase the yield per hectare through a higher use of
fertilizers. Therefore, unchanged global potash sales volumes of
about 58 to 60 million tonnes in 2011 as a whole (2010: 58.3 million
tonnes) can be assumed. Correspondingly, a globally high level of
utilisation of production capacities is to be expected also during
the further course of the year.

For nitrogen fertilizers too, a high demand for the remainder of
the year is assumed, which should lead to a good utilisation of
the nitrogen fertilizer plants worldwide. The average prices of
nitrogen fertilizers should be at a significantly higher level
year on year. However, higher raw material costs for ammonia,
phosphate and potash will probably counteract this.

After the close of the first quarter, the further de-icing salt
business in 2011 will be influenced decisively by wintry weather
conditions in Europe and North America in the fourth quarter. In
this respect, it can be assumed that sales volumes will be on
their multi-year average level in the case of both the European and
North American markets. While demand for food grade and industrial
salt in Europe and North America should be stable, the
South American industrial and food grade salt market will probably
grow further in line with the regional population trend. Demand on
the part of the chemical industry for salt for chemical use should
develop positively in light of the forecast economic growth.

The following forecasts relate to the expected organic revenue
and earnings development of the continued operations. The figures
for the previous year were restated correspondingly. Only in the
case of the adjusted Group earnings and the adjusted earnings
per share the activities of COMPO classified as discontinued
operations are taken into consideration.

Following the estimates in the outlook of the Financial Report 2010
and against the backdrop of the positive demand and price trends
emerging during the course of the first half of 2011, revenues of
the K+S Group should rise significantly in financial year 2011
against the previous year. A figure of between EUR 5.00 billion
and EUR 5.30 billion seems realistic from today´s perspective
(previous year: EUR 4.63 billion). While in the Potash and
Magnesium Products business segment a significant increase in
revenues and in the Nitrogen Fertilizers business segment
(without COMPO) also a strong one are assumed, in the Salt
business segment stable revenues at a high level are expected.
The revenue forecast assumes an average US dollar exchange rate of
1.42 USD/EUR (2010: 1.33 USD/EUR).

Operating earnings likely to rise strongly In financial year 2011,
earnings before interest, taxes, depreciation and amortisation
(EBITDA) and operating earnings EBIT I should increase strongly in
comparison to the figures for the previous year. The EBITDA of the
K+S Group will probably reach EUR 1.15 billion to EUR 1.30 billion
(previous year: EUR 953.0 million) and operating earnings EBIT I
between EUR 0.95 billion and EUR 1.05 billion (previous year:
EUR 714.5 million). This is primarily due to probably strong
growth in earnings in the Potash and Magnesium Products business
segment as well as a strong improvement in operating earnings
in the Nitrogen Fertilizers business segment. However, operating
earnings of the Salt business segment will probably decline
moderately. On the basis of the average US dollar estimate for 2011
of 1.42 USD/EUR (previously: 1.40 USD/EUR) and the hedging
instruments used, this does not result in a material currency-related
effect on earnings.

The forecasts are based on the following assumptions:

continued attractive agricultural prices;

• in comparison to the previous year, significantly higher average prices
and stable sales volumes in the Potash and Magnesium Products business
segment (expected sales volume: 7.0 million tonnes);
• sales volume of about 23 million tonnes (previously: 22 to 23 million
tonnes) of crystallised salt in the Salt business segment, of which about
14 million tonnes should be accounted for by de-icing salt (previously: 13
to 14 million tonnes). For the fourth quarter, this, as customary, assumes
the average of multi-year de-icing salt sales volumes;
• significantly rising energy costs in 2011 on the basis of an oil price
level of about 105 US$ (Brent, previously: 120 US$ per barrel).

Strongly improved Group earnings after taxes expected The adjusted
Group earnings after taxes of the continued operations should also
increase strongly in 2011 following the development of operating
earnings and reach a figure of between EUR 650 million and EUR 720
million (previous year: EUR 447.8 million). This would correspond
to adjusted earnings per share for the continued operations of
about EUR 3.40 to EUR 3.75 (previous year: EUR 2.34). Taking into
consideration the discontinued operations including the expected book
loss arising from the disposal of COMPO, adjusted Group earnings
after taxes are expected to reach EUR 560 million to EUR 630
million (previous year: EUR 445.3 million), which is the relevant
basis for the dividend payout. This would correspond to
adjusted earnings per share of about EUR 2.95 to EUR 3.30 (previous
year: EUR 2.33). This projection is based not only on the effects
described for revenues and operating earnings, but also on the
following circumstances expected from today's perspective:

• a significantly better financial result, after this had been negatively
impacted by special effects in 2010;
• a domestic Group tax rate of 28.3% and an adjusted Group tax ratio of
about 26% to 27% (2010: 26.2%).

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. K+S - 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 (H1/2011), a video
webcast by Norbert Steiner, Chairman of the Board of Executive
Directors of K+S Aktiengesellschaft, about the second quarter of
2011 and up-to-date press photos relating to the K+S Group are
available under http://www.k-plus-s.com/2011h1en.

We are offering a conference call for analysts in English today
at 3 p.m. Norbert Steiner, chairman of the Board of Executive
Directors, as well as Joachim Felker and Jan Peter Nonnenkamp,
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/2011h1en) or by phone under
+49-69-71044-5598. The conference will be recorded and also be
available as a podcast.

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 obligations to
update the statements contained in this press release.

|K+S Group at a Glance | |Q2 | |Q2 | |
|
|Q2/2011 | |Apr - Jun| |Apr - Jun| |
|
| | | |20| |20|
|
| | | |11| |10|
|
| | | | | | |
|
| |Po| |50| |46|
|
| |ta| |2.| |8.|
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| |sh| |4 | |9 |
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| | | | | | |
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| |Po| |18| |11|
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|
|Earnings before income taxes, adjusted1) | |176.6 | |118.5 | |+49.0
|
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|K+S Group at a Glance | |H1 | |H1 | |
|
|H1/2011 | |Jan - Jun| |Jan - Jun| |
|
| | | |20| |20|
|
| | | |11| |10|
|
| | | | | | |
|
| |Po| |1,| |97|
|
| |ta| |08| |3.|
|
| |sh| |0.| |6 |
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| |Po| |38| |26|
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| |ta| |6.| |9.|
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| |sh| |8 | |8 |
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|Earnings before income taxes, adjusted1) | |529.8 | |348.8 | |+51.9
|
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|
| | | | | | |
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|
| | | | | | |
|
|Employees as of 30 June (number) | |14,279 | |14,021 | |+1.8
|
|
|

Further inquiry note:
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

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, Jan Peter Nonnenkamp
Registered Office: Kassel
Commercial Register: Kassel HRB 2669

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: DE0007162000
indexes: DAX, Midcap Market Index, CDAX, Classic All Share, HDAX, Prime All
Share
stockmarkets: regulated dealing/prime standard: Frankfurt, regulated dealing:
Berlin, Hamburg, Stuttgart, Düsseldorf, Hannover, München
language: English