EANS-News: K+S Aktiengesellschaft / K+S: Strong Rise in Revenues and Earnings in 2008

Growth course continued

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balance/finances/shares/Q4/2008

Kassel (euro adhoc) - Kassel, 12 March 2009

Growth course continued
Strong Rise in Revenues and Earnings in 2008

. At EUR 4.8 billion, revenues up 43% year on year
. At EUR 1.34 billion, operating earnings increase almost fivefold
. Adjusted earnings per share at EUR 5.94 (2007: EUR 1.06)
. At EUR 2.40, dividend proposed increases almost fivefold
. 2009 Outlook: Revenues and earnings lower

The year 2008 was by far the best year in the over 100-year history of the K+S

Group. "The increases in revenues and earnings speak for themselves -
but that is not all, the figures also confirm that the K+S
Group is in the right position for important, global megatrends.
They include, above all, the growing world population, rising
meat consumption in emerging market countries associated with
an increase in demand for feed as well as growing demand for
biofuels. To put it differently: Also and precisely in times of
financial and economic crises, this is a far more stable
starting point for sustainable success than those of many other
sectors," says Norbert Steiner, chairman of the Board of
Executive Directors of K+S Aktiengesellschaft.

At EUR 4.8 billion, revenues rise 43% year on year For financial year
2008, K+S posted revenues of EUR 4,794.4 million, an increase of
43.4% year on year. The increase in revenues can be attributed to
positive price effects, which could more than make up for the
moderate declines in revenues that resulted from currency factors as
well as for the significant declines in revenues caused by volume
factors in the fourth quarter.

The Potash and Magnesium Products, fertiva and COMPO business
segments increased their revenues mainly as a result of considerably
higher fertilizer prices. In the Salt business segment, weak
de-icing salt sales in the first quarter were more than
compensated for by higher revenues in the salt for chemical
use, industrial salt and food grade salt segments and also as
a consequence of the onset of winter in the fourth quarter.

With 50% of the total, the Potash and Magnesium Products
business segment posted the highest revenues of all the K+S Group's
business segments followed by fertiva, COMPO and Salt. In Europe,
K+S achieved revenues of EUR 3,263.8 million (+46%). The region
thus accounted for just under 70% of total revenues. Revenues
generated on overseas markets rose by 37% to a total of EUR
1,530.6 million.

At EUR 1.34 billion, operating earnings almost quintupled At EUR
1,342.7 million, operating earnings EBIT I were up a good EUR 1
billion or 370% on last year's figure (2007: EUR 285.7 million).
Except for the Salt and the Complementary Business segments, all
business segments were able to improve on the previous year
materially. Far higher prices for standard and speciality
fertilizers resulted in a situation where it proved possible to
considerably more than make up for higher production costs as well as
currency effects.

With regard to operating earnings, seasonality was overshadowed by
the strong price effects. The prices for fertilizers, which had
risen constantly during the course of the year, resulted in a large
growth in earnings, which reached its zenith in the third
quarter; in the fourth quarter, the volume sold declined
significantly in the wake of the beginnings of the financial
and economic crisis. Operating earnings in the Salt business
segment were, as expected, somewhat lower than those of the
previous year due to higher costs, in particular for energy and
freight, and of a lower currency result.

Adjust earnings before and after taxes rise strongly

Adjusted earnings before taxes amounted to EUR 1,199.1 million. If
these earnings are adjusted for the included effects of market
value changes from hedging transactions as well as derivatives
that are no longer in operation amounting to EUR 150.4 million,
adjusted earnings before taxes amount to EUR 1,349.5 million. Thus,
this more appropriate financial indicator for assessing economic
success improved by EUR 1.1 billion year on year.

At EUR 979.3 million, Group earnings adjusted for the effect of
market value changes exceeded the previous year's level by EUR 804.0
million. In addition to dramatically higher operating earnings,
this was also due to the better financial result.

For the year under review, adjusted earnings per share amounted to
EUR 5.94, up 460% on the previous year's figure of EUR 1.06.

At EUR 2.40, dividend proposed increases almost fivefold K+S pursues
an earnings-based policy on dividends and normally strives for a
dividend rate of 40% to 50% of the adjusted Group earnings after
taxes. The Board of Executive Directors and the Supervisory Board
will thus propose to the Annual General Meeting that the dividend
for the past financial year should be raised substantially in
accordance with earnings and EUR 2.40 per share be paid. This
corresponds to a dividend payment rate of about 40%. With 165.0
million shares outstanding, this therefore results in a total
dividend payment of EUR 396.0 million. Based on a share price of
EUR 39.97 at the end of the year, our dividend proposal will lead
to a dividend yield of 6.0%, and, on the basis of yesterday's
closing price, even of 7,1%.

2009 Outlook Following the estimates in the outlook for the third
quarter of 2008 and against the background of the price level for
potash and magnesium products evident in the first quarter, K+S
expects tangibly higher average prices for 2009 as a whole
compared with the previous year. However, K+S now expects
significantly lower sales, which should rather offset the
aforementioned price effect. While the revenues of the COMPO and
fertiva business segments should be down significantly, mainly in
view of substantial price decreases for nitrogen fertilizers, K+S
expects significantly higher revenues for the Salt business
segment because of the good start with de-icing salt.

Overall, the 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 total costs of the K+S Group should decrease only
moderately in comparison to the previous year: As far as personnel
expenses are concerned, K+S 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. By contrast,
energy costs should reach a lower level than a year ago due to price
and volume factors. K+S also sees some relief in 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 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.

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

For 2010, K+S thinks it highly probable that revenues will
again increase markedly; this assessment is based primarily on
significantly higher revenues in the Potash and Magnesium Products
business segment due to volume factors. Given that, K+S sees
realistic chances of a significant increase also in operating
earnings.

Medium- to Long-Term Trends in Demand "The indicators for healthy and
profitable growth for the K+S Group remain favourable for the
coming years: The growing global population, the tendency for the
emerging market countries to consume more meat, in spite of
recurrent economic crises, and the associated increase in the demand
for feed will prompt the demand for large parts of our product
range to increase further," says Steiner. In the global salt
business too, the world population trend described above and the
resultant changes in lifestyle should have a positive impact. The
fact that de-icing salt will continue to be urgently needed to
ensure road safety has again been demonstrated during the past few
months on both sides of the Atlantic. "Against the backdrop of
strong financial fundamentals, we continue to assess the economic
position, above all in the medium term, as positive," Steiner
continued.

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 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 The 2008 Financial Report, the 2008 Corporate and
Sustainability Report as well as the Quarterly report on the course
of business for the K+S Group in the fourth quarter of 2008 can
be viewed and ordered on our website www.k-plus- s.com. In
addition, the speech given by Norbert Steiner, chairman of the
Board of Executive Directors of K+S Aktiengesellschaft, at today's
K+S Press and Analysts´ Conference will be available to you on our
website as of 10 am.

Conference call for analysts You can follow the analyst conference in
English, that will also take place today in connection with the
publication of the annual financial statements, live on the
Internet at www.k-plus-s.com as of 1 pm or per phone under
+49.69.5899.90799, PIN 3524527#.

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 | | | | | | |
|4th Quarter 2008 | | | | | | |
| | | |Q4 | |Q4 | | |
|All figures in accordance with | |Oct.-Dec. | |Oct.-Dec.| | |
|IFRSs | | | | | | |
| | | |2008 | |2007 | |Change |
| | | |EUR million | |EUR million| |in % |
| | | | | | | | |
|Revenues | |955.5 | |893.7 | |+6.9 |
| | | | | | | | |
| |Potash and Magnesium Products | |498.7 | |386.3 | |+29.1 |
| |COMPO | |100.8 | |127.5 | |(20.9) |
| |Fertiva | |113.8 | |179.5 | |(36.6) |
| |Salt | |209.3 | |168.9 | |+23.9 |
| |Complementary Business Segments| |32.8 | |31.4 | |+4.5 |
| |Reconciliation | |0.1 | |0.1 | |- |
| | | | | | | | |
|Operating earnings (EBIT I) | |287.8 | |33.6 | |+756.5 |
| | | | | | | | |
| |Potash and Magnesium Products | |275.3 | |4.2 | |+6,454.8|
| |COMPO | |(10.7) | |3.8 | |- |
| |Fertiva | |5.5 | |10.2 | |(46.1) |
| |Salt | |26.2 | |17.9 | |+46.4 |
| |Complementary Business Segments| |5.8 | |7.8 | |(25.6) |
| |Reconciliation | |(14.3) | |(10.3) | |- |
| | | | | | | | |
|Earnings after market value changes |286.0 | |(137.5) | |- |
|and derivatives no longer in | | | | | |
|operation (EBIT II) | | | | | |
| | | | | | | | |
|Earnings before income taxes | |315.1 | |(148.7) | |- |
| | | | | | | | |
|Earnings before income taxes, | |316.9 | |22.4 | |+1,314.7|
|adjusted1) | | | | | | |
| | | | | | | | |
|Group earnings after taxes | |226.4 | |(97.3) | |- |
| | | | | | | | |
|Group earnings after taxes, adjusted1)| |227.5| |22.9 | |+893.4 |
| | | | | | | | |
|Earnings per share, adjusted |1.38 | |0.14 | |+885.7 |
|(EUR)1),2) | | | | | |
| | | | | | | | |
|Capital expenditure3) | |64.4 | |75.4 | |(14.6) |
| | | | | | | |
|1) Adjusted for the effects of market value changes from hedging |
|transaction as well as derivatives that are |
|no longer in operation; in case of adjusted Group earnings and |
|adjusted earnings per share, the resulting |
|tax effects were also eliminated. |
|2) Adjusted to the share split in the ratio 1:4 (entry in Commercial |
|Register: 24 June 2008; technical |
|execution: 21 July 2008) |
|3) For or in connection with property, plant and equipment, intangible|
|assets

|
|K+S Group at a Glance | | | | | | |
|January to December 2008 | | | | | | |
| | | | | | | | |
|All figures in accordance with | |Jan.-Dec. | |Jan.-Dec.| | |
|IFRSs | | | | | | |
| | | |2008 | |2007 | |Change |
| | | |EUR million | |EUR million| |in % |
| | | | | | | | |
|Revenues | |4,794.4 | |3,344.1 | |+43.4 |
| | | | | | | | |
| |Potash and Magnesium Products | |2,397.4 | |1,408.0 | |+70.3 |
| |COMPO | |750.9 | |617.4 | |+21.6 |
| |fertiva | |901.5 | |648.0 | |+39.1 |
| |Salt | |618.6 | |545.1 | |+13.5 |
| |Complementary Business Segments| |125.3 | |125.1 | |+0.2 |
| |Reconciliation | |0.7 | |0.5 | |- |
| | | | | | | | |
|Operating earnings (EBIT I) | |1,342.7 | |285.7 | |+370.0 |
| | | | | | | | |
| |Potash and Magnesium Products | |1,203.2 | |177.9 | |+576.3 |
| |COMPO | |79.0 | |32.0 | |+146.9 |
| |fertiva | |42.4 | |25.3 | |+67.6 |
| |Salt | |45.2 | |47.8 | |(5.4) |
| |Complementary Business Segments| |25.1 | |37.7 | |(33.4) |
| |Reconciliation | |(52.2) | |(35.0) | |- |
| | | | | | | | |
|Earnings after market value changes |1,192.3| |(106.9) | |- |
|and derivatives no longer in operation| | | | | |
|(EBIT II) | | | | | |
| | | | | | | | |
|Earnings before income taxes | |1,199.1 | |(142.6) | |- |
| | | | | | | | |
|Earnings before income taxes, | |1,349.5| |250.0 | |+439.8 |
|adjusted1) | | | | | | |
| | | | | | | | |
|Group earnings after taxes | |870.9 | |(93.3) | |- |
| | | | | | | | |
|Group earnings after taxes, adjusted1)| |979.3| |175.3 | |+458.6 |
| | | | | | | | |
|Earnings per share, adjusted |5,94 | |1,06 | |+460,4 |
|(EUR)1),2) | | | | | |
| | | | | | | | |
|Capital expenditure3) | |197.5 | |171.6 | |+15.1 |
| | | | | | | |
|Employees as of 31 December (number)| |12,368 | |12,033 | |+2.8 |
| |of which trainees (number) | |615 | |614 | |- |
| |
|1) Adjusted for the effects of market value changes from hedging |
|transaction as well as derivatives that are |
|no longer in operation; a tax rate of 27.9% (2007: 31.6%) was imputed |
|for adjusted Group earnings and |
|adjusted earnings per share. |
|2) Adjusted to the share split in the ratio 1:4 (entry in Commercial |
|Register: 24 June 2008; technical |
|execution: 21 July 2008) |
|3) For or in connection with property, plant and equipment, intangible|
|assets |

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

Branche: Chemicals
ISIN: DE0007162000
WKN: 716200
Index: DAX, Midcap Market Index, CDAX, Classic All Share, HDAX,
Prime All Share
Börsen: Börse Frankfurt / regulated dealing/prime standard
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