Fertilizer Markets and Finance

The global volume of potash sold will fall 2012th In China and India, the largest decline is expected. For the salt and fertilizer supplier K + S are the rather poor prospects. The course is already fallen deeply. An entry may therefore be worthwhile.

The global potash sales, according to K + S will this year “up to 58 million tons of” decline. Last year 60.2 million tons were shipped worldwide. It expects the Mutual Group, that especially in the emerging markets of Asia will be less demand for fertilizer . This should not K + S but hit as hard as Potash and Uralkali. The two rivals will depend heavily on business with China and India. K + S the other hand, makes his headquarters in Europe. Asia less than 20 percent controls the proceeds of the potassium and magnesium in business.

Above expectations

The fertilizer and salt producer K + S in the first quarter, although much less deserving than a year ago, but could exceed analysts’ forecasts. Kassel’s group recorded in the first quarter of 2012, sales fell by twelve percent to 1.44 billion euros. The operating result fell by as much as 24 percent to 281 million euros, while net profit rose 29 percent to 193 million euros.

The market environment of K + S is currently not as good as you would have thought a few weeks ago. However, the long-term growth prospects of the FTSE Group continues to be good. With a price earnings ratio of 10 2012er, the stock is rated very low. On average, the investors had in the past ten years, willing to pay 15 times the profit. Unfortunately, the stock has fallen by the decline in recent weeks under the stop of 34 €. Investors should now necessarily wait and see if the important support holds around 33 €. Currently the stock is trading slightly below that value already.