TEL AVIV, Israel, Feb. 14, 2018 /PRNewswire/ --
- Fourth quarter sales of $1.36 billion compared to $1.34 billion for Q4 2016 ?
- Operating income of $189 million compared to $72 million in Q4 2016. Adjusted operating income of $168 million, an increase of 20% from $140 million in Q4 2016 -
- Strong performance in Q4 driven by recovery of the potash market and reduction in G&A -
- Annual sales of $5.42 billion compared to $5.36 billion for 2016 -
- Annual operating income of $629 million compared to operating loss of $3 million for 2016. Adjusted operating profit increased by 12% to $652 million despite challenging commodity businesses environment -
- Completion of water desalination company divestment and cash flow generation fueled $231 million reduction in net debt. Further reduction expected by mid-2018 after additional divestments are completed ?
ICL(NYSE: ICL) (TASE: ICL), a leading global specialty minerals and specialty chemicals company, today reported its financial results for the fourth quarter and year ended December 31, 2017.
Sales for the fourth quarter were $1,361 million compared to $1,338 million for the comparable period in 2016. ICL's sales for 2017 were $5.42 billion compared to $5.36 billion for 2016. The Company reported operating income of $189 million compared to $72 million for the fourth quarter of 2016, an increase of 160%. Adjusted operating income increased to $168 million from $140 million in the prior-year quarter, an increase of 20%, supported by the recovery of the potash market and a reduction in G&A. Due to ICL's balanced business structure, strong potash results in the fourth quarter compensated for off-season Specialty Solutions' results. Adjusted EBITDA for the fourth quarter was $276 million compared to $264 million in the prior-year quarter.
Operating income for 2017 increased to $629 million compared to an operating loss of $3 million in 2016. Adjusted operating income in 2017 increased by 12% to $652 million, supported by higher potash prices and the strong performance of ICL's Advanced Additives and Industrial Products business lines, as well as a reduction in G&A expenses. The Company recorded increased sales and operating margins in 2017, despite internal and external challenges that included continuing pressure on phosphate fertilizer prices and a short-term increase in production costs at ICL's UK and Spanish operations as the Company worked to optimize its mineral assets. ICL's results were also impacted by reduced dairy protein sales at ICL Food Specialties and the short-term slowdown in production at ICL Rotem's phosphate operation in Israel, resulting from the spill at one of its phospho-gypsum ponds. However, the execution of prudent capital allocation and successful divestments contributed to the Company's solid financial position. By focusing on its core mineral chains, ICL's strategy is designed to improve the competitive position of its mineral assets and grow its specialty businesses. (See "ICL's Strategic Direction" below.)
ICL's Acting CEO, Asher Grinbaum, stated, "I am proud to report that ICL demonstrated achievements across many financial parameters in 2017 ? in sales, operating margins, net profit, free cash flow and net debt. In addition to increasing our financial stability during 2017 by controlling CapEx, optimizing working capital and reducing our G&A expenses, we significantly reduced losses at our YPH JV in China, successfully continued our process of divesting from low-synergy assets, including ICL's holdings in IDE Technologies and our fire safety and oil additives businesses, for an aggregate $1.2 billion. We also grew our Specialty Fertilizer business despite commodity headwinds and accelerated the transfer of production at ICL UK from potash to Polysulphate, growing Polysulphate sales by around 50%. In addition, we entered into a long-term, beneficial agreement for the supply of natural gas to power our Israel-based facilities. A major overhang on our shares was also removed following Potash Corp's sale of its entire stake in ICL in January 2018. Our ongoing efforts to strengthen ICL's financial position and to balance our specialties and commodities businesses, combined with our unique mineral assets and value chain, unparalleled global production and logistics platform and dedicated and talented 13,000 employees, position ICL well to achieve further growth and increased value in 2018 and the years ahead".
ICL's Chairman, Mr. Johanan Locker, stated, "ICL's results in 2017 demonstrate management's successful execution of the Board's strategic direction. ICL has successfully divested low-synergy assets which have helped to reduce debt, enhance financial stability and create additional resources for future growth. Looking forward, ICL will focus on its core businesses aiming to further strengthen the competitiveness of its existing mineral assets while expanding our specialty businesses. In addition, ICL will combine its capabilities in the agriculture market with the growing use of precision agriculture, to significantly expand its specialty solutions portfolio to this market. The Company's successful efforts increase our confidence in our ability to weather market challenges while building value for our stakeholders."
FINANCIAL RESULTS
10-12/2017 |
10-12/2016 |
1-12/2017 |
1-12/2016 | |||||
$ millions |
% of sales |
$ millions |
% of sales |
$ millions |
% of sales |
$ millions |
% of sales | |
Sales |
1,361 |
- |
1,338 |
- |
5,418 |
- |
5,363 |
- |
Gross profit |
429 |
32 |
416 |
31 |
1,672 |
31 |
1,660 |
31 |
Operating income (loss) |
189 |
14 |
72 |
5 |
629 |
12 |
(3) |
- |
Adjusted operating income (1) |
168 |
12 |
140 |
10 |
652 |
12 |
582 |
11 |
Net income (loss) - shareholders |
155 |
11 |
32 |
2 |
364 |
7 |
(122) |
- |
Adjusted net income - shareholders |
142 |
10 |
114 |
9 |
389 |
7 |
451 |
8 |
Adjusted EBITDA (2) |
276 |
20 |
264 |
20 |
1,059 |
20 |
1,051 |
20 |
Free cash flow (3) |
137 |
127 |
405 |
346 |
||||
(1) See "Adjustments to reported operating and net income" in the Appendix below. | ||||||||
(2) See "Adjusted EBITDA for the periods of activity" in the Appendix below. | ||||||||
(3) See Appendix below for reconciliation. |
Results analysis:
Sales |
Expenses |
Operating |
||
$ millions |
||||
Q4 2016 figures |
1,338 |
(1,266) |
72 |
|
Total adjustments Q4 2016 * |
- |
68 |
68 |
|
Adjusted Q4 2016 figures |
1,338 |
(1,198) |
140 |
up |
Quantity |
(64) |
66 |
2 |
up |
Price |
53 |
- |
53 |
up |
Exchange rate |
34 |
(51) |
(17) |
down |
Raw materials |
- |
(6) |
(6) |
down |
Energy |
- |
(7) |
(7) |
down |
Transportation |
- |
10 |
10 |
up |
Operating and other expenses |
- |
(7) |
(7) |
down |
Adjusted Q4 2017 figures |
1,361 |
(1,193) |
168 |
|
Total adjustments Q4 2017 * |
- |
(21) |
(21) |
|
Q4 2017 figures |
1,361 |
(1,172) |
189 |
|
* See "Adjustments to reported operating and net income" in the Appendix below |
Revenue: Consolidated sales improved by around 2% to $1,361 million in Q4 2017, driven primarily by higher sales of phosphoric acid in ICL Phosphate, fire safety products in ICL Advanced Additives, specialty agriculture products in ICL Specialty Fertilizers and bromine-based industrial products in ICL Industrial Products. These improvements were partially offset by a decrease in quantities sold of phosphate fertilizers in ICL Phosphates, potash in ICL Potash & Magnesium and clear brine solutions in ICL Industrial Products. Favorable pricing in potash in ICL Essential Minerals (an increase of $20 in the average FOB price per tonne), as well as bromine-based industrial products in ICL Specialty Solutions, also contributed to the improvement relative to the prior year. In addition, sales were favorably impacted by the strengthening of the euro against the dollar.
Operating income: Operating income was positively impacted by the Company's product mix, mainly higher share of potash sales from the Dead Sea and higher sales of fire safety products compared to Q4 2016, increases in selling prices as described above and lower transportation costs due to lower quantities of potash sold. This was partly offset by the strengthening of the shekel and euro against the US dollar which increased production costs, higher sulphur prices which increased costs in ICL's phosphate value chain and higher electricity prices in Europe. The negative impact of other operating expenses derives mainly from income relating to employee benefits recorded in the fourth quarter of 2016 and a provision for an environmental claim in Israel made this quarter. This was partly offset by insurance income in Israel in the fourth quarter of 2017. The increase in annual operating income was driven primarily by operational cost-saving measures (including G&A) throughout the Company; higher sales quantities of fire-safety products, bromine compounds, phosphoric acid and specialty agriculture products; higher prices for potash and flame retardants; lower sulphur prices in ICL Rotem and lower raw material costs in ICL Specialty Fertilizers. This was partly offset by a decrease in sales of phosphate rock, phosphate fertilizers and dairy proteins, lower prices of phosphate fertilizers, phosphoric acids and specialty agriculture products, as well as higher energy and transportation costs. Exchange rate fluctuations had a significant negative impact, increasing annual operating costs by $47 million compared to the prior year, mainly due to the strengthening of the shekel against the US dollar.
Financing expenses, net: The net reported financing expenses in the fourth quarter of 2017 amounted to $25 million, compared to $19 million in the corresponding quarter last year. Interest income of about $3 million in Q4 was recognized in connection with the resolution of a Belgium tax dispute relating to prior periods. In the corresponding quarter last year, interest expenses were recognized, in the amount of about $12 million, relating to a tax assessment agreement signed with the Israel Tax authority relating to prior years. Net adjusted financing expenses in the fourth quarter of 2017 totaled $28 million compared with an unusually low level of $7 million in the corresponding quarter last year. The increase derived mainly from an increase of about $24 million, mainly from revaluation of liabilities for employee benefits (in shekel terms) and a decrease in income in respect of changes in the fair value of derivatives.
Tax expenses: Tax expenses in the fourth quarter of 2017 amounted to $13 million. Excluding the impact of adjustments to operating income in the amount of $5 million (mainly capital gains tax from the divestment of IDE) and the resolution of a tax dispute in Belgium resulting in tax income of $25 million, which were offset by tax liabilities of $31 million following some transactions we made in preparation of the pending businesses divestitures, adjusted tax expenses amounted to $1 million. This amount is exceptionally low and does not reflect ICL's future tax rate, as taxes are calculated on an annual basis. Our effective tax rate for 2017 (as well as our estimate going forward), following certain assumptions made regarding Natural Resource Tax expenses, resulted in an annual effective tax rate of approximately 30%. ICL recorded tax income in the fourth quarter of 2017 due to an adjustment to deferred taxes following the tax reform in the US. ICL's provision in respect of the Natural Resources Tax Law (the "Law") in Israel was prepared in accordance with the Company's best understanding as to how the Law is to be applied, including certain assumptions and interpretations regarding several material matters, including the value of property, plant and equipment in the financial statements for each mineral, as well as calculation of the operating income for each mineral. This Law is new, applies only to ICL and to date, no regulations have been issued with respect to the Law, no opinions have been published by Israel Tax Authority regarding the matter and no relevant court decisions have been rendered. It is possible that in future periods the Israel Tax Authority will have different views and argue that the Company should make additional payments, even for very significant amounts, based on alternative interpretations the Authorities may adopt regarding the proper application of the Law.
Cash flow & debt level: Fourth quarter net operating cash flow of $277 million increased by $20 million compared to the prior-year period. The increase stemmed mostly from a more moderate increase in trade and other receivables compared to the fourth quarter of 2016. Capex (cash basis)[1] increased by $2 million to $140 million. Free cash flow (see Appendix for reconciliation) totaled $137 million which brought the annual free cash flow to $405 million, compared to $346 million in 2016. Net debt as of December 31 2017, totaled $3,037 million, a decrease of $231 million compared to the end of 2016.
During the fourth quarter, Standard & Poor's Global Ratings ("S&P") reaffirmed the Company's international corporate credit rating at BBB- with a stable outlook. The Israeli rating by S&P Maalot was also reaffirmed as ilAA with a stable outlook. These ratings also apply to the Company's debentures.
[1]The Capex (cash basis) is the cash used for "Purchases of property, plant, equipment and intangible assets" reduced by any "Proceeds from sale of property, plant and equipment" as shown in the condensed consolidated statements of cash flow to the Company's financial statements as at December 31, 2017
ICL'S STRATEGIC DIRECTION
ICL's strategic direction, as was recently refined by the board of directors, calls for our three core minerals, bromine, potash and phosphate, to remain the base of the Company's operations. ICL will continue to strengthen this base through optimization and efficiency measures that ensure the competitiveness of the Company's upstream and downstream products and grow the Company's profit margin. The growth of ICL's specialty businesses will be supported through a value based pricing strategy, bolt-on acquisitions and introduction of new, value added products and solutions.
ICL aims to leverage its position and capabilities in the fertilizer market and the growing use of precision agriculture to enhance its marketing capabilities and to provide data driven solutions. These measures will enable the development of advanced and focused agriculture solutions to an expanding customer base, including farmers.
Implementing optimization and efficiency measures to improve the Company's existing mineral assets is expected to contribute to increased production capabilities and reduction of cost per tonne, thereby ensuring the competitiveness of ICL's sites. At ICL Iberia, for instance, the Company is expected to continue the consolidation of its mining operations and to introduce an efficiency plan with the goal of making this site a solid profitable potash site even in low-cycle periods. At ICL UK, ICL is shifting its production from potash to Polysulphate which is a semi-specialty fertilizer and is expected to bring this site to break-even in the short term and to solid profitability in the medium term. At ICL's YPH JV in China, the Company has likewise reduced costs through efficiency and operational excellence measures, while accelerating the shift from commodity to specialty products.
ICL will strive to solidify its position as a unique, flexible company that meets consumer needs by offering sophisticated, innovative and tailored solutions.
NOTABLE DEVELOPMENTS IN 2017
REVIEW OF OPERATING SEGMENTS
Specialty Solutions Segment
The Specialty Solutions Segment, which serves diversified industrial markets, concentrates on achieving growth through a highly-tailored customer focus, product innovation and commercial excellence. The segment includes three business lines: ICL Industrial Products, ICL Advanced Additives and ICL Food Specialties.
Business highlights:
ICL's Specialty Solutions segment accounted for 48% of ICL's overall sales (before elimination of inter-segment sales) and operating income attributed to segments in the fourth quarter of 2017. Results were supported by higher sales along ICL Advanced Additives' P2O5 value chain and an increase in quantities sold in its fire safety business resulting from off-season wildfires in California, as well as from the segment's value-oriented pricing strategy and expansion of its customer base. Supportive bromine market conditions in the fourth quarter led to higher sales quantities of bromine-based flame retardants in ICL Industrial Products, offset by a decrease in the sales of clear brine solutions. ICL Food Specialties recorded lower sales to Russia and lower dairy protein sales to a major customer; however, the business line expects significant improvement in 2018 resulting from customer diversification and pricing initiatives. While the segment's operating income was positively influenced by increased quantities sold and selling prices, these were offset by a provision for bad debt, an increase in royalties paid as a result of increased sales and inventory write-offs during the quarter.
$ millions |
10-12/2017 |
10-12/2016 |
1-12/2017 |
1-12/2016 |
Industrial Products |
303 |
283 |
1,193 |
1,120 |
Sales to external customers |
298 |
279 |
1,179 |
1,111 |
Sales to internal customers |
5 |
4 |
14 |
9 |
Advanced Additives |
199 |
173 |
877 |
798 |
Sales to external customers |
186 |
157 |
824 |
732 |
Sales to internal customers |
13 |
16 |
53 |
66 |
Food Specialties |
151 |
151 |
596 |
659 |
Sales to external customers |
149 |
150 |
585 |
650 |
Sales to internal customers |
2 |
1 |
11 |
9 |
Setoffs |
(2) |
(6) |
(16) |
(24) |
Total segment sales |
651 |
601 |
2,650 |
2,553 |
Operating income attributable to the segment |
114 |
121 |
554 |
534 |
ICL Industrial Products
ICL Advanced Additives
Advanced Additives' sales performance significantly exceeded the corresponding quarter last year, positively impacted by several factors:
ICL Food Specialties
Results of operations for the period October ? December 2017
Sales analysis |
Industrial Products |
Advanced Additives |
Food Specialties |
Setoff |
Segment Total |
|||
$ millions | ||||||||
Total sales Q4 2016 |
283 |
173 |
151 |
(6) |
601 |
|||
Quantity |
6 |
17 |
(7) |
3 |
19 |
up | ||
Price |
9 |
4 |
1 |
(1) |
13 |
up | ||
Exchange rate |
5 |
5 |
6 |
2 |
18 |
up | ||
Total sales Q4 2017 |
303 |
199 |
151 |
(2) |
651 |
Operating income attributable to the segment analysis |
$ millions |
|
Total operating income Q4 2016 |
121 |
|
Quantity |
7 |
up |
Price |
13 |
up |
Exchange rate |
(2) |
down |
Raw materials |
(1) |
down |
Energy |
(1) |
down |
Transportation |
1 |
up |
Operating and other expenses |
(24) |
down |
Total operating income Q4 2017 |
114 |
Contribution from higher sales quantities deriving from fire safety and bromine-based flame retardants as well as higher prices in the bromine value chain and of specialty acids was more than offset mainly by an increase in operating and other expenses due to a provision for bad debt, inventory write-off, higher royalty payments in the bromine value chain and an income related to employee benefits recorded in Q4 2016.
Essential Minerals Segment
The Essential Minerals segment, which serves the agricultural market, includes three business lines: ICL Potash & Magnesium, ICL Phosphate and ICL Specialty Fertilizers. The segment focuses on delivering high-quality agricultural products, while continuously driving efficiency, process innovation and operational excellence.
Business highlights:
Potash & Magnesium
Business environment overview
Business highlights
Phosphate
Business Environment
Business Highlights
Specialty Fertilizers
Results of Operations
10-12/2017 |
10-12/2016 |
1-12/2017 |
1-12/2016 | |
$ millions |
$ millions |
$ millions |
$ millions | |
Potash & Magnesium |
414 |
415 |
1,383 |
1,338 |
Sales to external customers |
381 |
386 |
1,258 |
1,213 |
Sales to internal customers |
33 |
29 |
125 |
125 |
Phosphate |
242 |
263 |
1,052 |
1,163 |
Sales to external customers |
189 |
226 |
860 |
966 |
Sales to internal customers |
53 |
37 |
192 |
197 |
Specialty Fertilizers |
156 |
137 |
692 |
661 |
Sales to external customers |
148 |
129 |
671 |
632 |
Sales to internal customers |
8 |
8 |
21 |
29 |
Setoffs |
(32) |
(15) |
(119) |
(126) |
Total segment sales |
780 |
800 |
3,008 |
3,036 |
Operating income attributable to the segment |
124 |
103 |
359 |
398 |
Sales analysis |
Potash & Magnesium |
Phosphate |
Specialty Fertilizers |
Setoff |
Segment Total |
||||
$ millions |
|||||||||
Total sales Q4 2016 |
415 |
263 |
137 |
(15) |
800 |
||||
Quantity |
(41) |
(38) |
16 |
(15) |
(78) |
down | |||
Price |
32 |
11 |
2 |
(3) |
42 |
up | |||
Exchange rate |
8 |
6 |
1 |
1 |
16 |
up | |||
Total sales Q4 2017 |
414 |
242 |
156 |
(32) |
780 |
||||
Operating income attributable to the segment analysis |
$ millions |
||||||||
Total operating income Q4 2016 |
103 |
||||||||
Quantity |
(1) |
down |
|||||||
Price |
42 |
up |
|||||||
Exchange rate |
(13) |
down |
|||||||
Raw materials |
(11) |
down |
|||||||
Energy |
(6) |
down |
|||||||
Transportation |
9 |
up |
|||||||
Operating and other (expenses) income |
1 |
up |
|||||||
Total operating income Q4 2017 |
124 |
||||||||
Sales quantities of potash and phosphate fertilizers had a negative impact, offset by an increase in the sales quantities of phosphoric acid and specialty agriculture products. The impact was insignificant on operating profit due to the composition of potash production sites and product mix throughout the segment. Price contribution derived mostly from higher potash prices. The contribution of exchange rates to sales due to the strengthening of the euro against the dollar was more than offset in the operating profit mainly due to the impact of the strengthening of the Israeli shekel on production costs. An increase in sulphur prices, as well as higher electricity charges in Europe, had a negative impact on operating income, offset by lower transportation costs due to a decrease in the quantities sold and despite an increase in marine transportation prices.
Potash Stand Alone Activities:
Production and sales:
Thousands of Tonnes |
10-12/2017 |
10-12/2016 |
1-12/2017 |
1-12/2016 |
Production |
1,303 |
1,303 |
4,773 |
5,279 |
Sales to external customers |
1,375 |
1,632 |
4,687 |
4,818 |
Sales to internal customers |
125 |
92 |
352 |
347 |
Total sales (including internal sales) |
1,500 |
1,724 |
5,039 |
5,165 |
Closing inventory |
400 |
666 |
400 |
666 |
Lower sales quantities in Q4 2017 compared to exceptionally strong shipments in Q4 2016 which was a significantly back-end loaded year. Production in the fourth quarter was stable compared to the corresponding quarter in 2016.
Key Figures:
Millions of dollars |
10-12/2017 |
10-12/2016 |
1-12/2017 |
1-12/2016 |
Sales to external customers |
361 |
369 |
1,181 |
1,134 |
Sales to internal customers * |
40 |
34 |
149 |
151 |
Total Sales |
401 |
403 |
1,330 |
1,285 |
Gross Profit |
198 |
167 |
555 |
513 |
Operating income attributable to potash business |
124 |
94 |
303 |
291 |
CAPEX |
114 |
66 |
256 |
305 |
Depreciation and amortization |
35 |
27 |
121 |
119 |
Average potash selling price per tonne |
222 |
202 |
219 |
211 |
* Sales to other business lines of ICL including the Magnesium business. |
Potash stand-alone activities include, among others, Polysulphate produced in a mine in the UK and salt produced in underground mines in the UK and Spain.
Results of operations for the period October-December 2017:
Sales analysis |
$ millions |
|
Total sales Q4 2016 |
403 |
|
Quantity |
(44) |
down |
Price |
34 |
up |
Exchange rate |
8 |
up |
Total sales Q4 2017 |
401 |
Operating income attributable to potash business analysis |
$ millions |
|
Total operating income Q4 2016 |
94 |
|
Quantity |
(5) |
down |
Price |
34 |
up |
Exchange rate |
(6) |
down |
Energy |
(3) |
down |
Transportation |
2 |
up |
Operating and other (expenses) income |
8 |
up |
Total operating income Q4 2017 |
124 |
The significant growth of 32% in Q4 2017 operating income derived from higher prices, lower transportation costs and lower operating costs, and was only partly offset by the negative impact of lower sales quantities and the upward revaluation of the Israeli shekel against the dollar.
Production and Sales ? Phosphates
Thousands of Tonnes |
10-12/2017 |
10-12/2016 |
1-12/2017 |
1-12/2016 |
Phosphate rock |
||||
Production of rock |
1,098 |
1,301 |
4,877 |
5,744 |
Sales * |
140 |
157 |
498 |
1,032 |
Phosphate rock used for internal purposes |
1,030 |
1,054 |
4,300 |
4,099 |
Phosphate fertilizers |
||||
Production |
555 |
691 |
2,094 |
2,725 |
Sales * |
501 |
750 |
2,291 |
2,645 |
* To external customers. |
The decrease in phosphate rock production derived mainly from adjusting production volumes to the business environment in ICL Rotem, which included a shutdown of the Zin plant during a part of the fourth quarter. The plant returned to activity towards the end of the quarter. Sales of phosphate rock were lower due to the challenging market environment and unattractive prices. The decrease in phosphate fertilizers production stemmed mainly from decreased production at the YPH JV as a result of its shift to specialty products. The decrease in sales of phosphate fertilizers stemmed mainly from a decrease in sales to Asia.
DIVIDEND DISTRIBUTION
The Board of Directors declared that a dividend totaling $70 million, or about $0.054 per share, will be paid on March 14, 2018, in respect of ICL's fourth quarter 2017 results.
About ICL
ICL is a global manufacturer of products based on its three mineral value chains ? bromine, potash and phosphate, serving global agriculture and industrial markets.
ICL produces approximately a third of the world's bromine, and is the sixth largest potash producer, as well as the leading provider of pure phosphoric acid. It is a major manufacturer of specialty fertilizers, specialty phosphates and flame retardants. ICL's mining and manufacturing activities are located in Israel, Europe, the Americas and China, and are supported by global distribution and supply networks.
The agricultural products that ICL produces help to feed the world's growing population. The potash and phosphates that it mines and manufactures are used as ingredients in fertilizers and serve as an essential component in the pharmaceutical and food additives industries. The food additives that ICL produces enable people to have greater access to more varied and higher quality food. Other substances, based on bromine and phosphates allow the safe and widespread use of a variety of products and materials and help to create energy that is more efficient and environmentally friendly.
ICL benefits from a number of unique advantages, including its vertically integrated activities and complementary and synergistic downstream operations for the production of unique end products; its balanced and varied product portfolio in growing markets; broad presence throughout the world and proximity to large markets, including in emerging regions.
ICL operates within a strategic framework of sustainability that includes a commitment to the environment, support of communities in which ICL's manufacturing operations are located and where its employees live, and a commitment to all its employees, customers, suppliers and other stakeholders.
ICL is a public company whose shares are dually listed on the New York Stock Exchange and the Tel Aviv Stock Exchange (NYSE and TASE: ICL). The Company employs approximately 13,000 people worldwide, and its sales in 2017 totaled US$5.4 billion. For more information, visit the Company's website at www.icl-group.com.
Forward Looking Statement
This press release contains statements that constitute "forward-looking statements", many of which can be identified by the use of forward-looking words such as "anticipate", "believe", "could", "expect", "should", "plan", "intend", "estimate" and "potential" among others. Forward-looking statements include, but are not limited to assessments and judgments regarding macro-economic conditions and ICL's markets, operations and financial results. Forward-looking assessments and judgments are based on our management's current beliefs and assumptions and on information currently available to our management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, market fluctuations, especially in ICL's manufacturing locations and target markets ;the difference between actual resources and our resources estimates ;changes in the demand and price environment for ICL's products as well as the cost of shipping and energy, whether caused by actions of governments, manufacturers or consumers ;changes in the capital markets, including fluctuations in currency exchange rates, credit availability, interest rates ;changes in the competition structure in the market; and the factors in "Item 3. Key Information?D. Risk Factors" in the Company's annual report on Form 20-F filed with the U.S. Securities and Exchange Commission on March 16, 2017. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update or revise them or any other information contained in this press release, whether as a result of new information, future developments or otherwise.
(Financial tables follow and are also available in Excel format on our website located at www.icl-group.com)
Appendix:
We disclose in this Quarterly Report non-IFRS financial measures titled adjusted operating income, adjusted net income attributable to the Company's shareholders, adjusted EBITDA and free cash flow. Our management uses adjusted operating income, adjusted net income attributable to the Company's shareholders and adjusted EBITDA to facilitate operating performance comparisons from period to period and present free cash flow to facilitate a review of our cash flows in periods. We calculate our adjusted operating income by adjusting our operating income to add certain items, as set forth in the reconciliation table "Adjustments to reported operating and net income" below. Certain of these items may recur. We calculate our adjusted net income attributable to the Company's shareholders by adjusting our net income attributable to the Company's shareholders to add certain items, as set forth in the reconciliation table "Adjustments to reported operating and net income" below, excluding the total tax impact of such adjustments and adjustments attributable to the non-controlling interests. We calculate our adjusted EBITDA by adding back to the net income attributable to the Company's shareholders the depreciation and amortization, financing expenses, net, taxes on income and the items presented in the reconciliation table "Adjusted EBITDA for the periods of activity" below which were adjusted for in calculating the adjusted operating income and adjusted net income attributable to the Company's shareholders. We calculate our free cash flow as our cash flows from operating activities net of our purchase of property, plant, equipment and intangible assets, and adding Proceeds from sale of property, plant and equipment and Dividends from equity-accounted investees during such period as presented in the reconciliation table under "Calculation of free cash flow".
You should not view adjusted operating income, adjusted net income attributable to the Company's shareholders or adjusted EBITDA as a substitute for operating income or net income attributable to the Company's shareholders determined in accordance with IFRS, or free cash flow as a substitute for cash flows from operating activities and cash flows used in investing activities, and you should note that our definitions of adjusted operating income, adjusted net income attributable to the Company's shareholders, adjusted EBITDA and free cash flow may differ from those used by other companies. However, we believe adjusted operating income, adjusted net income attributable to the Company's shareholders, adjusted EBITDA and free cash flow provide useful information to both management and investors by excluding certain expenses that management believes are not indicative of our ongoing operations. In particular for free cash flow, we adjust our Capex to include any Proceeds from sale of property, plant and equipment because we believe such amounts offset the impact of our purchase of property, plant, equipment and intangible assets. We further adjust free cash flow to add Dividends from equity-accounted investees because receipt of such dividends affects our residual cash flow. Free cash flow does not reflect adjustment for additional items that may impact our residual cash flow for discretionary expenditures, such as adjustments for charges relating to acquisitions, servicing debt obligations, changes in our deposit account balances that relate to our investing activities and other non-discretionary expenditures. Our management uses these non-IFRS measures to evaluate the Company's business strategies and management's performance. We believe that these non-IFRS measures provide useful information to investors because they improve the comparability of the financial results between periods and provide for greater transparency of key measures used to evaluate our performance.
We present a discussion in the period-to-period comparisons of the primary drivers of changes in the Company's results of operations. This discussion is based in part on management's best estimates of the impact of the main trends in its businesses. We have based the following discussion on our financial statements. You should read the following discussion together with our financial statements.
Unaudited Condensed Consolidated Statements of Income | ||||
(In millions, except per share data) | ||||
For the three-month period ended |
For the year ended | |||
December 31, |
December 31, |
December 31, |
December 31, | |
$ millions |
$ millions |
$ millions |
$ millions | |
Sales |
1,361 |
1,338 |
5,418 |
5,363 |
Cost of sales |
932 |
922 |
3,746 |
3,703 |
Gross profit |
429 |
416 |
1,672 |
1,660 |
Selling, transport and marketing expenses |
189 |
191 |
746 |
722 |
General and administrative expenses |
70 |
80 |
261 |
321 |
Research and development expenses |
15 |
19 |
55 |
73 |
Other expenses (income) |
(34) |
54 |
(19) |
547 |
Operating income (loss) |
189 |
72 |
629 |
(3) |
Finance expenses, net |
25 |
19 |
124 |
132 |
Share in earnings (losses) of equity-accounted investees |
(2) |
2 |
- |
18 |
Income (loss) before income taxes |
162 |
55 |
505 |
(117) |
Income taxes |
13 |
50 |
158 |
55 |
Net income (loss) |
149 |
5 |
347 |
(172) |
Net loss attributable to the non-controlling interests |
(6) |
(27) |
(17) |
(50) |
Net income (loss) attributable to the shareholders of the Company |
155 |
32 |
364 |
(122) |
Earnings (loss) per share attributable to the shareholders of the Company: |
||||
Basic earnings (loss) per share (in cents) |
12.00 |
3.00 |
29.00 |
(10.00) |
Diluted earnings (loss) per share (in cents) |
12.00 |
3.00 |
29.00 |
(10.00) |
Weighted-average number of ordinary shares outstanding: |
||||
Basic (in thousands) |
1,277,099 |
1,274,195 |
1,276,072 |
1,273,295 |
Diluted (in thousands) |
1,277,947 |
1,274,791 |
1,276,997 |
1,273,295 |
Unaudited Condensed Consolidated Statements of Financial Position: | ||
December 31, |
December 31, | |
$ millions |
$ millions | |
Current assets |
||
Cash and cash equivalents |
83 |
87 |
Short-term investments and deposits |
90 |
29 |
Trade receivables |
932 |
966 |
Inventories |
1,226 |
1,267 |
Assets held for sale |
169 |
- |
Other receivables |
225 |
222 |
Total current assets |
2,725 |
2,571 |
Non-current assets |
||
Investments in equity-accounted investees |
29 |
153 |
Financial assets available for sale |
212 |
253 |
Deferred tax assets |
132 |
150 |
Property, plant and equipment |
4,521 |
4,309 |
Intangible assets |
722 |
824 |
Other non-current assets |
373 |
292 |
Total non-current assets |
5,989 |
5,981 |
Total assets |
8,714 |
8,552 |
Current liabilities |
||
Short-term credit |
822 |
588 |
Trade payables |
790 |
644 |
Provisions |
78 |
83 |
Liabilities held for sale |
43 |
- |
Other current liabilities |
595 |
708 |
Total current liabilities |
2,328 |
2,023 |
Non-current liabilities |
||
Long-term debt and debentures |
2,388 |
2,796 |
Deferred tax liabilities |
228 |
303 |
Long-term employee provisions |
640 |
576 |
Provisions |
193 |
185 |
Other non-current liabilities |
7 |
10 |
Total non-current liabilities |
3,456 |
3,870 |
Total liabilities |
5,784 |
5,893 |
Equity |
||
Total shareholders' equity |
2,859 |
2,574 |
Non-controlling interests |
71 |
85 |
Total equity |
2,930 |
2,659 |
Total liabilities and equity |
8,714 |
8,552 |
Unaudited Condensed Consolidated Statements of Cash Flows: | ||||
For the |
For the year ended | |||
December 31, |
December 31, |
December 31, |
December 31, | |
$ millions |
$ millions |
$ millions |
$ millions | |
Cash flows from operating activities |
||||
Net income (loss) |
149 |
5 |
347 |
(172) |
Adjustments for: |
||||
Depreciation, amortization and impairment |
118 |
95 |
418 |
406 |
Revaluation of balances from financial institutions and interest expenses, net |
27 |
(6) |
137 |
76 |
Share in (earnings) losses of equity-accounted investees, net |
2 |
(2) |
- |
(18) |
Other capital losses (gains), net |
(45) |
2 |
(54) |
433 |
Share-based compensation |
3 |
3 |
16 |
15 |
Deferred tax expenses (income) |
(34) |
112 |
(46) |
(2) |
220 |
209 |
818 |
738 | |
Change in inventories |
(48) |
56 |
57 |
70 |
Change in trade and other receivables |
61 |
128 |
21 |
150 |
Change in trade and other payables |
38 |
(160) |
(45) |
(90) |
Change in provisions and employee benefits |
6 |
24 |
(4) |
98 |
Net change in operating assets and liabilities |
57 |
48 |
29 |
228 |
Net cash provided by operating activities |
277 |
257 |
847 |
966 |
Cash flows from investing activities |
||||
Investments in shares and proceeds from deposits, net |
(6) |
20 |
(65) |
(198) |
Purchases of property, plant and equipment and intangible assets |
(140) |
(138) |
(457) |
(632) |
Proceeds from divestiture of subsidiaries |
- |
- |
6 |
17 |
Proceeds from sale of equity-accounted investee |
168 |
- |
168 |
- |
Dividends from equity-accounted investees |
- |
8 |
3 |
12 |
Proceeds from sale of property, plant and equipment |
- |
- |
12 |
- |
Other |
- |
1 |
- |
1 |
Net cash provided by (used in) investing activities |
22 |
(109) |
(333) |
(800) |
Cash flows from financing activities |
||||
Dividends paid to the Company's shareholders |
(56) |
- |
(237) |
(162) |
Receipt of long-term debt |
70 |
40 |
966 |
1,278 |
Repayment of long-term debt |
(353) |
(371) |
(1,387) |
(1,365) |
Short-term credit from banks and others, net |
18 |
117 |
147 |
14 |
Other |
- |
(2) |
- |
(4) |
Net cash used in financing activities |
(321) |
(216) |
(511) |
(239) |
Net change in cash and cash equivalents |
(22) |
(68) |
3 |
(73) |
Cash and cash equivalents as at beginning of the period |
109 |
157 |
87 |
161 |
Net effect of currency translation on cash and cash equivalents |
1 |
(2) |
(2) |
(1) |
Cash and cash equivalents included as part of assets held for sale |
(5) |
- |
(5) |
- |
Cash and cash equivalents as at the end of the period |
83 |
87 |
83 |
87 |
Additional Information | ||||
For the |
For the year ended | |||
December 31, |
December 31, |
December 31, |
December 31, | |
$ millions |
$ millions |
$ millions |
$ millions | |
Income taxes paid, net of tax refunds |
70 |
4 |
127 |
84 |
Interest paid |
37 |
35 |
111 |
112 |
Adjustments to Reported Operating and Net Income | ||||
10-12/2017 |
10-12/2016 |
1-12/2017 |
1-12/2016 | |
$ millions |
$ millions |
$ millions |
$ millions | |
Operating income (loss) |
189 |
72 |
629 |
(3) |
Capital (gain) loss (1) |
(48) |
- |
(54) |
1 |
Write-down and impairment of assets (2) |
14 |
- |
32 |
489 |
Provision for early retirement and dismissal of employees (3) |
5 |
13 |
20 |
39 |
Provision in respect of prior periods resulting from an arbitration decision (4) |
- |
3 |
6 |
13 |
Retroactive electricity charges (5) |
(6) |
- |
(6) |
(16) |
Provision for legal claims (6) |
14 |
1 |
25 |
8 |
Provision for historical waste removal (7) |
- |
51 |
- |
51 |
Total adjustments to operating income (loss) |
(21) |
68 |
23 |
585 |
Adjusted operating income |
168 |
140 |
652 |
582 |
Net income (loss) attributable to the shareholders of the Company |
155 |
32 |
364 |
(122) |
Total adjustments to operating income (loss) |
(21) |
68 |
23 |
585 |
Adjustments to finance expenses (8) |
(3) |
12 |
- |
38 |
Total tax impact of the above operating income & finance expenses adjustments |
5 |
(15) |
(4) |
(81) |
Tax assessment and deferred tax adjustments (9) |
6 |
22 |
6 |
36 |
Adjustments attributable to the non-controlling interests |
- |
(5) |
- |
(5) |
Total adjusted net income - shareholders of the Company |
142 |
114 |
389 |
451 |
(1) In Q4 2017, capital gain from IDE divestiture, in the amount of $41 million and capital gain from deconsolidation of Allana Afar in Ethiopia, in the amount of $7 million. In 2017, additional consideration received regarding earn-out of 2015 divestitures in the amount of $6 million.
(2) In Q4 2017, an impairment of assets in China and the Netherlands, in the amounts of $11 million and $3 million, respectively. In 2017, an impairment of an intangible asset in Spain, in the amount of $14 million and write-down of an investment in Namibia in the amount of $4 million. In 2016, with respect to write-down of assets (including closure cost) relating to the global ERP project (Harmonization Project), in the amount of $282 million, write down of assets relating to discontinuance of the activities of Allana Afar in Ethiopia (including expected closure cost), in the amount of $202 million and impairment in the value of assets of a subsidiary in the United Kingdom, in the amount of $5 million.
(3) Provision for early retirement and dismissal of employees in accordance with the Company's comprehensive global efficiency plan in its production facilities throughout the group. In 2017, provisions relating to the Company's facilities in Israel at ICL Rotem and in Q4 2017, provisions related to subsidiaries in North America (Everris NA Inc.) and Europe (Everris International B.V and BK Giulini GMBH). In 2016, provisions relating to the Company's Bromine facilities in Israel and in Q4 2016 provisions mostly relating to the Company's facilities in the United Kingdom (Cleveland Potash Ltd.) and the joint venture in China (reflected also in the non-controlling interests' adjustment below).
(4) Provision in connection with prior periods in respect of royalties' arbitration in Israel.
(5) Reversal of a provision in connection with prior periods in respect of costs of management services of the electricity system in DSW and ICL Rotem.
(6) In Q4 2017, provisions for legal claims for damages related to the contamination of the water in certain wells at the Suria site in Spain, in the amount of $12 million, and settlement of the dispute with Great Lakes (a subsidiary of Chemtura Corporation), in the amount of $2 million. In 2017, provisions for legal claims relating to a dispute with the National Company for Roads in Israel regarding damage caused to bridges by DSW, in the amount of $6 million and to a dispute with the European Commission concerning past grants received by a subsidiary in Spain, in the amount of $5 million. In 2016, provisions mainly regarding two claims settled in 2016 related to prior periods deriving from the settlement agreement that ended the class action brought by the farmers in Israel regarding potash prices, and provisions deriving mainly from the commercial price dispute with Haifa Chemicals which ended with the arbitration award agreement.
(7) Provision for purification and removal of historical waste from the potash sites in Spain as a result of decisions made by the Spanish authorities in connection with the plan for treating the salt pile in the Sallent site leading to changes in the plans mainly related to the water pumping process involved in the salt treatment.
(8) Interest and linkage expenses in connection with the royalties' arbitration and tax assessments in Israel and Belgium, and a dispute of a subsidiary in Spain with the European Commission, all relating to prior periods. In Q4 2017, an income of $3 million in connection with the Belgium tax dispute resolution. In 2017, $3 million related to a dispute of a Spanish subsidiary with the European Commission (see also footnote no.6 above). In 2016, $26 million in connection with the royalties' arbitration and $12 million relating to a tax assessment in Israel.
(9) In Q4 2017, internal transaction in preparation of non-core businesses divestitures, resulting in tax liabilities of $31 million and resolution of the Belgium tax dispute resulting in tax income of $25 million. It should be noted that the capital gain from divestment of the fire safety and oil additives businesses will be adjusted in 2018, subject to the closing of the deal. In 2016, tax assessments in Israel and Belgium relating to prior periods.
Calculation of Adjusted EBITDA: | ||||
10-12/2017 |
10-12/2016 |
1-12/2017 |
1-12/2016 | |
$ millions |
$ millions |
$ millions |
$ millions | |
Net income (loss) attributable to the shareholders of the Company |
155 |
32 |
364 |
(122) |
Depreciation and amortization |
104 |
95 |
390 |
401 |
Financing expenses, net |
25 |
19 |
124 |
132 |
Taxes on income |
13 |
50 |
158 |
55 |
Adjustments * |
(21) |
68 |
23 |
585 |
Total adjusted EBITDA |
276 |
264 |
1,059 |
1,051 |
* See "Adjustments to reported operating and net income" above. |
Calculation of free cash flow*: | ||||
10-12/2017 |
10-12/2016 |
1-12/2017 |
1-12/2016 | |
$ millions |
$ millions |
$ millions |
$ millions | |
Cash flows from operating activities |
277 |
257 |
847 |
966 |
Purchase of property, plant, equipment and intangible assets |
(140) |
(138) |
(457) |
(632) |
Proceeds from the sale of property, plant and equipment |
- |
- |
12 |
- |
Dividends from equity-accounted investees |
- |
8 |
3 |
12 |
Free cash flow |
137 |
127 |
405 |
346 |
*The items above present the amounts as shown in the condensed consolidated statements of cash flow to the Company's financial statements as at December 31, 2017.
Operating income by business lines ($ millions): | |||
2017 |
2016 |
2015 | |
Potash & Magnesium |
282 |
282 |
637 |
Phosphate |
23 |
60 |
187 |
Specialty Fertilizers |
56 |
55 |
63 |
Eliminations |
(2) |
1 |
(2) |
Essential Minerals segment operating income |
359 |
398 |
885 |
Industrial Products |
303 |
286 |
225 |
Advanced Additives |
201 |
163 |
154 |
Food Specialties |
51 |
84 |
72 |
Eliminations |
(1) |
1 |
- |
Specialty Solutions segment operating income |
554 |
534 |
451 |
Other activities |
1 |
5 |
16 |
Operating income attributed to segment |
914 |
937 |
1,352 |
Sales by Main Countries: | ||||||||
10-12/2017 |
10-12/2016 |
1-12/2017 |
1-12/2016 | |||||
$ millions |
% of sales |
$ millions |
% of sales |
$ millions |
% of sales |
$ millions |
% of sales | |
USA |
241 |
18 |
240 |
18 |
1,091 |
20 |
1,070 |
20 |
China |
213 |
16 |
261 |
20 |
724 |
13 |
669 |
12 |
Brazil |
144 |
11 |
135 |
10 |
594 |
11 |
521 |
10 |
Germany |
94 |
7 |
83 |
6 |
378 |
7 |
392 |
7 |
United Kingdom |
83 |
6 |
58 |
4 |
328 |
6 |
306 |
6 |
India |
68 |
5 |
31 |
2 |
200 |
4 |
199 |
4 |
France |
67 |
5 |
47 |
4 |
265 |
5 |
226 |
4 |
Spain |
64 |
5 |
59 |
4 |
264 |
5 |
258 |
5 |
Israel |
41 |
3 |
62 |
5 |
171 |
3 |
237 |
4 |
Italy |
32 |
2 |
31 |
2 |
121 |
2 |
122 |
2 |
All other |
314 |
22 |
331 |
25 |
1,282 |
24 |
1,363 |
26 |
Total |
1,361 |
100 |
1,338 |
100 |
5,418 |
100 |
5,363 |
100 |
Sales by Geographical Regions: | ||||||||
10-12/2017 |
10-12/2016 |
1-12/2017 |
1-12/2016 | |||||
$ millions |
% of sales |
$ millions |
% of sales |
$ millions |
% of sales |
$ millions |
% of sales | |
Europe |
465 |
34 |
387 |
29 |
1,918 |
35 |
1,863 |
35 |
Asia |
396 |
29 |
391 |
29 |
1,342 |
25 |
1,275 |
24 |
North America |
260 |
19 |
262 |
20 |
1,175 |
22 |
1,141 |
21 |
South America |
160 |
12 |
152 |
11 |
666 |
12 |
588 |
11 |
Rest of the world |
80 |
6 |
146 |
11 |
317 |
6 |
496 |
9 |
Total |
1,361 |
100 |
1,338 |
100 |
5,418 |
100 |
5,363 |
100 |
Europe ? the increase compared to the corresponding quarter last year derives mainly from an increase in the quantities sold of phosphate fertilizers, bromine-based industrial products and specialty agriculture, together with an increase in potash selling prices.
Asia? stable sales compared to the corresponding quarter last year. An increase in the quantities sold of phosphoric acid, bromine-based flame retardants, acids and specialty agriculture products, together with an increase in potash selling prices, were partly offset by a decrease in phosphate fertilizers quantities sold.
North America ? stable sales compared to the corresponding quarter last year. A decrease in the sale quantities of potash and clear brines solutions was offset by an increase in the sale quantities of fire-safety and P4 products.
South America ? the increase derives mainly from an increase in potash selling prices.
Rest of the world ? the decrease derives mainly from a decrease in dairy protein products and potash quantities sold.
Results of operations for the period January ? December 2017:
Sales |
Expenses |
Operating |
||
$ millions |
||||
YTD 2016 figures |
5,363 |
(5,366) |
(3) |
|
Total adjustments YTD 2016 * |
- |
585 |
585 |
|
Adjusted YTD 2016 figures |
5,363 |
(4,781) |
582 |
|
Quantity |
52 |
(1) |
51 |
up |
Price |
(6) |
- |
(6) |
down |
Exchange rate |
9 |
(56) |
(47) |
down |
Raw materials |
- |
25 |
25 |
up |
Energy |
- |
(21) |
(21) |
down |
Transportation |
- |
(12) |
(12) |
down |
Operating and other expenses |
- |
80 |
80 |
up |
Adjusted YTD 2017 figures |
5,418 |
(4,766) |
652 |
|
Total adjustments YTD 2017 * |
- |
23 |
23 |
|
YTD 2017 figures |
5,418 |
(4,789) |
629 |
* See "Adjustments to reported operating and net income" above.
Specialty Solutions segment: results of operations for the period January ? December 2017: | |||||||
Sales analysis |
Industrial Products |
Advanced Additives |
Food Specialties |
Setoff |
Segment Total |
||
$ millions |
|||||||
Total sales YTD 2016 |
1,120 |
798 |
659 |
(24) |
2,553 |
||
Quantity |
57 |
85 |
(67) |
7 |
82 |
up | |
Price |
12 |
(7) |
(1) |
- |
4 |
up | |
Exchange rate |
4 |
1 |
5 |
1 |
11 |
up | |
Total sales YTD 2017 |
1,193 |
877 |
596 |
(16) |
2,650 |
Operating income attributable to the segment analysis |
$ millions |
|
Total operating income YTD 2016 |
534 |
|
Quantity |
52 |
up |
Price |
4 |
up |
Exchange rate |
(15) |
down |
Raw materials |
19 |
up |
Energy |
(2) |
down |
Transportation |
(1) |
down |
Operating and other (expenses) income |
(37) |
down |
Total operating income YTD 2017 |
554 |
Essential Minerals Segment: results of operations for the period January ? December 2017: | ||||||
Sales analysis |
Potash & Magnesium |
Phosphate |
Specialty Fertilizers |
Setoff |
Segment Total |
|
$ millions |
||||||
Total sales YTD 2016 |
1,338 |
1,163 |
661 |
(126) |
3,036 |
|
Quantity |
1 |
(73) |
46 |
8 |
(18) |
down |
Price |
41 |
(37) |
(12) |
(1) |
(9) |
down |
Exchange rate |
3 |
(1) |
(3) |
- |
(1) |
down |
Total sales YTD 2017 |
1,383 |
1,052 |
692 |
(119) |
3,008 |
Operating income attributable to the segment analysis |
$ millions |
|
Total operating income YTD 2016 |
398 |
|
Quantity |
7 |
up |
Price |
(9) |
down |
Exchange rate |
(31) |
down |
Raw materials |
6 |
up |
Energy |
(19) |
down |
Transportation |
(11) |
down |
Operating and other (expenses) income |
18 |
up |
Total operating income YTD 2017 |
359 |
Divested Businesses Sales and Operating Income (Fire Safety and oil Additives): | ||||
2017 |
2016 |
2015 |
2014 | |
$ millions | ||||
Sales |
309 |
245 |
226 |
197 |
Operating income |
116 |
79 |
64 |
51 |
Operating Segment Data: | |||||
Specialty Solutions Segment |
Essential |
Other |
Eliminations |
Consolidated | |
$ millions | |||||
For the three-month period ended December 31, 2017 |
|||||
Sales to external parties |
633 |
718 |
10 |
- |
1,361 |
Inter-segment sales |
18 |
62 |
- |
(80) |
- |
Total sales |
651 |
780 |
10 |
(80) |
1,361 |
Operating income attributable to the segments |
114 |
124 |
- |
238 | |
General and administrative expenses |
(70) | ||||
Other income not allocated to segments and intercompany eliminations |
21 | ||||
Operating income |
189 | ||||
Financing expenses, net |
(25) | ||||
Share in losses of equity-accounted investee |
(2) | ||||
Income before taxes on income |
162 | ||||
Capital expenditures |
34 |
152 |
- |
186 | |
Total capital expenditures |
186 | ||||
Depreciation and amortization |
28 |
75 |
1 |
104 | |
Depreciation and amortization not allocated |
14 | ||||
Total depreciation and amortization |
118 |
Specialty Solutions Segment |
Essential Minerals Segment |
Other Activities |
Eliminations |
Consolidated | |
$ millions | |||||
For the three-month period ended December 31, 2016 |
|||||
Sales to external parties |
586 |
741 |
11 |
- |
1,338 |
Inter-segment sales |
15 |
59 |
(1) |
(73) |
- |
Total sales |
601 |
800 |
10 |
(73) |
1,338 |
Operating income attributable to the segments |
121 |
103 |
- |
224 | |
General and administrative expenses |
(80) | ||||
Other expenses not allocated to segments and intercompany eliminations |
(72) | ||||
Operating income |
72 | ||||
Financing expenses, net |
(19) | ||||
Share in earnings of equity-accounted investee |
2 | ||||
Income before taxes on income |
55 | ||||
Capital expenditures |
28 |
107 |
- |
135 | |
Capital expenditures not allocated |
1 | ||||
Total capital expenditures |
136 | ||||
Depreciation and amortization |
24 |
69 |
1 |
94 | |
Depreciation and amortization not allocated |
1 | ||||
Total depreciation and amortization |
95 |
Specialty Solutions Segment |
Essential Minerals Segment |
Other Activities |
Eliminations |
Consolidated | |
$ millions | |||||
For the year ended December 31, 2017 |
|||||
Sales to external parties |
2,588 |
2,789 |
41 |
- |
5,418 |
Inter-segment sales |
62 |
219 |
2 |
(283) |
- |
Total sales |
2,650 |
3,008 |
43 |
(283) |
5,418 |
Operating income attributable to the segments |
554 |
359 |
1 |
914 | |
General and administrative expenses |
(261) | ||||
Other expenses not allocated to segments and intercompany eliminations |
(24) | ||||
Operating income |
629 | ||||
Financing expenses, net |
(124) | ||||
Income before taxes on income |
505 | ||||
Capital expenditures |
80 |
423 |
1 |
504 | |
Capital expenditures not allocated |
3 | ||||
Total capital expenditures |
507 | ||||
Depreciation and amortization |
111 |
274 |
3 |
388 | |
Depreciation and amortization not allocated |
30 | ||||
Total depreciation and amortization |
418 |
Specialty Solutions Segment |
Essential |
Other |
Eliminations |
Consolidated | |
$ millions | |||||
For the year ended December 31, 2016 |
|||||
Sales to external parties |
2,493 |
2,811 |
59 |
- |
5,363 |
Inter-segment sales |
60 |
225 |
- |
(285) |
- |
Total sales |
2,553 |
3,036 |
59 |
(285) |
5,363 |
Operating income attributable to the segments |
534 |
398 |
5 |
937 | |
General and administrative expenses |
(321) | ||||
Other expenses not allocated to segments and intercompany eliminations |
(619) | ||||
Operating loss |
(3) | ||||
Financing expenses, net |
(132) | ||||
Share in earnings of equity-accounted investee |
18 | ||||
Loss before taxes on income |
(117) | ||||
Capital expenditures |
95 |
497 |
1 |
593 | |
Capital expenditures not allocated |
59 | ||||
Total capital expenditures |
652 | ||||
Depreciation and amortization |
106 |
292 |
3 |
401 | |
Depreciation and amortization not allocated |
5 | ||||
Total depreciation and amortization |
406 |
INVESTOR RELATIONS CONTACT |
PRESS CONTACT |
Limor Gruber |
Maya Avishai |
Head of Investor Relations |
Head of Global External Communications |
+972-3-684-4471 |
+972-3-684-4477 |
SOURCE ICL
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