(Adds details, CEO quote)
Nov 12 (Reuters) - German minerals miner K+S on Thursday reported higher than expected third-quarter core profit, buoyed by strong performance by industry and consumer segments of its Americas unit and strict cost discipline.
The salt and potash fertiliser supplier said quarterly earnings before interest, tax, depreciation and amortization (EBITDA) rose 19% to 96 million euros ($113 million) for three months ended Sept. 30, above a company-provided consensus of 88.7 million euros.
“With the proceeds from the sale of the American salt business and the consistent implementation of our package of measures, we will significantly reduce the company’s debt and secure financing for the coming years,” Chief Executive Officer Burkhard Lohr said in a statement.
The company in October signed an agreement to sell its North and South American salt business to Stone Canyon Industries Holdings and affiliates for $3.2 billion.
The company said earning contributions from the industry and consumer segments of its Americas operating unit, including salt and potash businesses, increased, which “almost completely offset the effects of lower early de-icing salt fills.” But overall earnings from the region fell 3.6%.
K+S maintained its full-year core profit guidance and said it expects 2020 EBITDA of about 480 million euros after one-time restructuring expenses.
It adjusted its 2020 net income outlook, and now expects earnings after taxes to fall sharply to a significant negative figure, compared with forecast of just a significant decline.
The net income outlook cut is due to the one-off non-cash impairment loss of about 2 billion euros on assets that the company reported it would take earlier this month, citing lower long-term potash price expectations and a higher cost of capital rate.
$1 = 0.8496 euros Reporting by Bartosz Dabrowski in Gdansk; Editing by Rashmi Aich