EANS-News: K+S Aktiengesellschaft / Successful third quarter 2010 K+S Group revenues and earnings increase significantly

--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------

Company Information/quarterly report

Kassel (euro adhoc) - Kassel, 11 November 2010

Successful third quarter 2010
K+S Group revenues and earnings increase significantly

• Third quarter revenues up 52% to almost EUR 1.1 billion •
Operating earnings reach EUR 108.5 million (Q3/09: EUR 9.4 million)
• Adjusted earnings per share at EUR 0.21 (Q3/09: EUR (0.01)) •
Earnings forecast for 2010 raised:

- Expected revenues: EUR 4.8 billion to EUR 5.0 billion (previously: EUR
4.6 billion to EUR 5.0 billion; previous year: EUR 3.6 billion)
- Operating earnings EBIT I should increase to between EUR 630 million and
EUR 670 million (previously: EUR 550 million to EUR 600 million; previous year:
EUR 238 million)
- Earnings per share expected to be between EUR 1.95 and EUR 2.10
(previously: EUR 1.75 to 1.95 EUR/share; previous year: EUR 0.56/share)
• Outlook for 2011:
- Revenues should increase moderately
- Significant increase in operating earnings and adjusted Group earnings
after taxes expected

The recovery in demand for fertilizers observed since the start of
the year continued in the third quarter. The salt markets in Western
Europe as well as North and South America also showed themselves
to be in good health. At the same time, the inclusion of Morton
Salt also contributed to a significant increase in K+S Group´s
revenues and earnings in the third quarter of 2010.

"The development in our most important business segments Potash and
Magnesium

Products and Salt in the third quarter was better than expected. This has
prompted us to raise our earnings forecast for the current year," says Norbert
Steiner, Chairman of the Board of Executive Directors of
K+S Aktiengesellschaft. "For 2011 too, we are confident that we will be able to
significantly raise both operating earnings and adjusted Group earnings after
taxes."

Third quarter revenues strongly up once again At EUR 1,061.2 million,
revenues for the third quarter were up EUR 363.1 million or 52% on
the figure for the same period last year. The increase was
attributable to volume- and consolidation-related growth and able to
more than make up for price-related decreases in revenues. The
Salt business segment significantly increased its revenues, in
particular due to the consolidation of Morton Salt. The Nitrogen
Fertilizers and Potash and Magnesium Products business segments
also achieved considerable revenue growth after the demand for
fertilizers increased significantly again. Revenues in the first nine
months of the year also rose by 45% due to volume and
consolidation effects and reached EUR 3,653.3 million. In this
period, 38% of revenues were generated in the Potash and
Magnesium Products business segment, followed by Salt (33%) and
Nitrogen Fertilizers (27%). The acquisition of Morton Salt has
contributed to the regional distribution of revenues now being very
balanced between Europe and overseas: Thus, about 53% of total
revenues were generated in Europe and 47% overseas.

Operating earnings more than ten times higher than last year In the
third quarter of 2010, operating earnings (EBIT I) of the K+S
Group reached EUR 108.5 million and thus, seen against the low basis
of the previous year (Q3/09: EUR 9.4 million), improved very
strongly. While the Potash and Magnesium Products and Nitrogen
Fertilizers business segments improved their earnings as a
result of the persistent considerably higher demand for
fertilizers from the start of the year, the pleasant earnings in
the Salt business segment can be attributed to a positive
consolidation effect (EUR 18.3 million) and to an increased early
stocking-up business for de-icing salt. In the first nine months
of 2010, operating earnings of EUR 531.7 million were achieved.
This exceeded the previous year´s figure (9M/09: EUR 201.5
million) by about 164 %.

Depreciation and amortisation amounted to EUR 55.7 million
and were EUR 19.8 million higher in comparison to the previous
year. Of this increase, EUR 20.3 million was accounted for by the
consolidation of Morton Salt. This in turn includes depreciation of
EUR 11.1 million on valuations made within the framework of
purchase price allocation. In the first nine months, depreciation
and amortisation of the K+S Group amounted to EUR 182.6 million
(9M/09: EUR 106.0 million) and include depreciation on valuations of
EUR 39.6 million made within the framework of purchase price
allocation of Morton Salt. Against this backdrop, greater
importance will be assigned to the EBITDA in the future when
assessing earnings capacity, especially in the Salt business segment.

EBITDA also significantly up on previous year During the third
quarter of 2010, earnings before interest, taxes, depreciation and
amortisation (EBITDA) increased by EUR 119.0 million to EUR
164.3 million. Morton Salt accounted for EUR 38.6 million of this.
In the first nine months, EBITDA was EUR 714.4 million (9M/09: EUR
307.5 million). At EUR 135.1 million, one third of the total
increase of EUR 406.9 million was contributed by Morton Salt.

Third quarter financial result affected by non-recurrent effect In
the third quarter, the financial result was EUR (52.7) million
after having been EUR (11.7) million in the same period of the
previous year. In addition to higher interest expenses resulting
from the financing of the acquisition of Morton Salt, this was
principally the result of a non-cash, extraordinary interest
expense (EUR 23.1 million) for provisions for mining obligations.
The financial result was EUR (104.4) million in the first nine
months, having been EUR (96.7) million in the same period of the
previous year.

Adjusted earnings also strongly improved The adjusted earnings before
income taxes reached EUR 55.8 million in the quarter under review and
were therefore EUR 58.1 million higher than in the same period of
the previous year. Adjusted earnings before income taxes reached
EUR 427.3 million in the first nine months of the year, having been
EUR 104.8 million in the same period of the previous year.

In the third quarter, it proved possible to increase adjusted
Group earnings after taxes by EUR 42.5 million to EUR 40.4 million
(Q3/09: EUR (2.1) million). In the first nine months, adjusted
Group earnings after taxes of EUR 313.7 million (9M/09: EUR 76.1
million) were achieved.

Third quarter adjusted earnings per share at EUR 0.21 For the quarter
under review, adjusted earnings per share amounted to EUR 0.21 per
share and thus were significantly higher than a year ago (EUR
(0.01)). This was computed on the basis of 191.40 million no-par
value shares, being the average number of shares outstanding
(previous year: 165.00 million no-par value shares). In the first
nine months, adjusted earnings per share reached EUR 1.64 compared
to EUR 0.46 in the same period of the previous year. This
corresponds to an increase of EUR 1.18 to which Morton Salt
contributed a total of EUR 0.10 after financing costs. Thus, Morton
Salt has, since the first day of its inclusion in the K+S Group (1
October 2009) and despite all acquisition-related special and
customary seasonal effects as well as taking financing costs
into consideration, so far contributed positively to the
operating success in every quarter.

Outlook for 2010: Earnings forecast raised In 2010, demand for
fertilizers and in particular for potash fertilizers will again
increase significantly due to the low stocks of straight
fertilizers in the trade sector at the start of the year and due to
the lower potash content of the soil following two very good
harvests and the reduced application of fertilizers since autumn
2008. Agricultural consumption has increased sharply and, in the
first nine months, was again approaching its normal level. Since
the middle of the year, this development was boosted by
significantly higher agricultural prices, which result in strongly
improved earnings potential for the global agricultural sector.
Against this background, now global potash sales volumes of
between 52 and 53 million tonnes for 2010 as a whole are
expected (previous forecast: about 50 million tonnes; 2009: 31
million tonnes).

In the Salt business sector, the fourth quarter´s de-icing salt
business will be influenced decisively by wintry weather
conditions in Europe and North America. The forecast is based on
sales volumes at 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 salt and food grade salt
market will probably grow further in line with the regional
population trend. As far as salt for chemical use is concerned,
demand on the part of the chemical industry primarily in Europe
should continue to normalise in the context of a persistent economic
recovery.

Against the backdrop of the given demand and price tendencies,
revenues of the K+S Group should rise significantly in financial
year 2010 against the previous year. A figure of between EUR 4.8
billion and EUR 5.0 billion seems realistic from today´s perspective
(previously expected: EUR 4.6 billion to EUR 5.0 billion;
previous year: EUR 3.6 billion). In particular the Salt business
segment, which will grow very significantly due to the first-time
inclusion of Morton Salt for the whole year, but also the Potash
and Magnesium Products and Nitrogen Fertilizers business segments
should experience significant revenue growth.

For financial year 2010, operating earnings EBIT I of the K+S
Group should increase significantly in comparison to the figure for
the previous year. This is attributable to the earnings increase in
the Potash and Magnesium Products business segment, the
turnaround in earnings in the Nitrogen Fertilizers business
segment and the already described consolidation effect in the
Salt business segment. The forecast for operating earnings EBIT I for
the K+S Group

this year has been raised to between EUR 630 million and
EUR 670 million (previously: EUR 550 million to EUR 600 million; previous year:
EUR 238.0 million). The forecast is based on the following assumptions:

• Stable average prices in the Potash and Magnesium Products business
segment in the fourth quarter
• Sales volumes in the Potash and Magnesium Products business segment of
6.7 to 6.9 million tonnes (previous forecast: 6.5 to 7.0 million tonnes)
• Sales volumes in the Salt business segment of about 22 million tonnes
(previous forecast: 21 to 22 million tonnes), of which about 13 million
tonnes (previous forecast: 12 to 13 million tonnes) should be accounted
for by de-icing salt. For the fourth quarter, this, as customary,
assumes normal de-icing salt sales volumes at their multi-year average
level
• An average US dollar exchange rate of 1.33 USD/EUR for 2010 as a whole
(previous forecast: 1.31 USD/EUR) and 1.37 USD/EUR for the fourth
quarter and as of 31 December 2010
• Stable energy prices in the fourth quarter on the basis of the energy
agreement clauses relevant for K+S

Assuming expected depreciation of about EUR 250 million for
2010 including depreciation of just under EUR 55 million on
valuations at Morton Salt within the framework of purchase price
allocation, EBITDA of between EUR 880 million and EUR 920
million is expected this year (previously: EUR 800 million to
EUR 850 million; previous year: EUR 411.8 million).

Adjusted Group earnings after taxes should also be significantly
higher in 2010, in line with the development of operating earnings.
Here a figure between EUR 375 million and EUR 405 million
(previously: EUR 330 million to EUR 370 million; previous year: EUR
93.6 million) is expected. This would correspond to adjusted
earnings per share of about EUR 1.95 to EUR 2.10/share (previously:
EUR 1.75 to EUR 1.95/share; previous year: EUR 0.56/share). The
projection is based not only on the assumptions described for
revenues and operating earnings, but also on the following facts
expected from today's perspective:

• A somewhat weaker financial result in comparison to the previous year
due to non-recurrent effects
• A domestic Group tax rate to be applied in accordance with IFRSs of
28.0% and an overall adjusted Group tax ratio derived from this of 26%
to 27% (2009: 23.7%)

Significantly higher earnings also expected for 2011 As a result of
an expected further increase in global demand for potash
fertilizers, it is now reasonable to assume global potash sales
volumes in 2011 of between 55 and 60 million tonnes (previous
forecast: 53 to 57 million

tonnes). The higher estimate is primarily based on a probably not only
temporary positive price trend for agricultural raw materials and the
resultantly more attractive earnings prospects of the agricultural sector. This
should provide sufficient incentive to increase yields per hectare through the
increased use of fertilizers. In the case of straight nitrogen fertilizers and
complex fertilizers too, the positive trend in demand should continue in the
coming year.

Assuming average weather conditions, demand for de-icing salt in
Europe should decline to a normal level again at the start
of 2011 and increase correspondingly again in North America.
While the consumption of food grade and industrial salt in Europe
and North America should be stable in 2011 too, the South American
industrial and food grade salt market should grow further in
line with the regional population trend. Demand on the part of
the chemical industry for salt for chemical use should again
increase moderately in light of the emerging economic recovery.

In financial year 2011, revenues of the K+S Group should
therefore increase moderately overall and it is likely that
operating earnings will increase significantly. This and an
improved financial result should also cause a significant
increase in adjusted Group earnings after taxes. This estimate is
based on the following assumptions:

• Continued attractive agricultural prices
• Higher average prices and moderate increases in sales volumes (expected
sales volume: just over 7 million tonnes) in the Potash and Magnesium
Products business segment
• Average sales volumes of crystallised salt of about 21 million tonnes,
somewhat lower in comparison to the previous year
• A US dollar exchange rate of 1.40 USD/EUR
• Stable energy prices on the basis of the energy agreement clauses
relevant for K+S
• A stable adjusted Group tax ratio of 26% to 27%

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 15,000 people. The K+S share - the only commodities stock on
the German DAX index - is listed on all German stock exchanges
(ISIN: DE0007162000, symbol: SDF). For additional information on
K+S please visit www.k-plus-s.com.

Note to editors The Quarterly Financial Report Q3/2010, an interview
with Norbert Steiner - chairman of the Board of Executive
Directors of K+S Aktiengesellschaft - about the course of business
and up-to-date press photos relating to the K+S Group are
available under www.k-plus-s.com/2010q3en.

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 (www.k-plus-s.com) or by phone
(+49-69- 71044-5598). The conference will be recorded and also
be available as a podcast.

Contact:

Press:
Michael Wudonig

phone: +49 561 9301-1262
fax: +49 561 9301-1666
michael.wudonig@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 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 obligation to update the statements
contained in this press release.

|K+S Group at a Glance | | | | | |
|
|Q3/2010 | | | | | |
|
| | | | | | | |
|
|All figures in accordance with IFRSs | |Q3 | |Q3 | |
|
| | | |July - | |July - Sept.| |
|
| | | |Sept. | | | |
|
| | | |2010 | |2009 | |Change
|
| | | |EUR million | |EUR million | |in %
|
| | | | | | | |
|
|Revenues | |1,061.2 | |698.1 | |+52.0
|
| | | | | | | |
|
| |Potash and Magnesium Products | |417.8 | |340.8 | |+22.6
|
| |Nitrogen Fertilizers | |306.1 | |204.5 | |+49.7
|
| |Salt | |305.2 | |121.7 | |+150.8
|
| |Complementary Business | |31.8 | |30.9 | |+2.9
|
| |Segments | | | | | |
|
| |Reconciliation | |0.3 | |0.2 | |-
|
| | | | | | | |
|
|Operating earnings (EBIT I) | |108.5 | |9.4 |
|+1,054.3|
| | | | | | | |
|
| |Potash and Magnesium Products | |79.4 | |54.0 | |+47.0
|
| |Nitrogen Fertilizers | |2.6 | |(47.3) | |-
|
| |Salt | |31.8 | |13.5 | |135.6
|
| |Complementary Business | |4.3 | |4.3 | |-
|
| |Segments | | | | | |
|
| |Reconciliation | |(9.6) | |(15.1) | |-
|
| | | | | | | |
|
|Earnings after operating |158.9 | |17.4 | |+813.2
|
|hedges (EBIT II) | | | | |
|
| | | | | | | |
|
|Financial result | |(52.7) | |(11.7) | |(350.4)
|
| | | | | | |
|
|Earnings before income taxes | |106.2 | |5.7 |
|+1,763.2|
| | | | | | | |
|
|Earnings before income taxes, adjusted1) | |55.8 | |(2.3) | |-
|
| | | | | | | |
|
|Group earnings after taxes | |76.8 | |3.7 |
|+1,975.7|
| | | | | | | |
|
|Group earnings after taxes, adjusted1) | |40.4 | |(2.1) | |-
|
| | | | | | | |
|
|Earnings per share, adjusted (EUR)1) |0.21 | |(0.01) | |-
|
| | | | | | | |
|
|Capital expenditure2) | |45.5 | |43.5 | |+4.6
|
| | | | | | |
|
| | | | | | | |
|
|
|
|1) The adjusted figures only contain the earnings actually realised on
|
|operating forecast hedges for the respective reporting period. The changes in
|
|the market value of operating forecast hedges still outstanding, however, are
|
|not taken into account. Any resulting effects on deferred and cash taxes are
|
|also eliminated; tax rate 2010: 28.0% (2009: 27.9%).
|
|
|
|2) Cash-effective investments in or depreciation on property, plant and
|
|equipment, intangible assets.
|
|K+S Group at a Glance | | | | | |
|
|January to September 2010 | | | | | |
|
| | | | | | | |
|
|All figures in accordance with IFRSs| | |Jan. - | |Jan. - Sept.| |
|
| | | |Sept. | | | |
|
| | | |2010 | |2009 | |Change
|
| | | |EUR million | |EUR million | |in
% |
| | | | | | | |
|
|Revenues | |3,653.3 | |2,512.5 | |+45.4
|
| | | | | | | |
|
| |Potash and Magnesium Products | |1,379.7 | |1,061.1 | |+30.0
|
| |Nitrogen Fertilizers | |979.0 | |804.0 | |+21.8
|
| |Salt | |1,196.9 | |559.3 | |+114.0
|
| |Complementary Business Segments| |97.2 | |87.6 | |+11.0
|
| |Reconciliation | |0.5 | |0.5 | |-
|
| | | | | | | |
|
|Operating earnings (EBIT I) | |531.7 | |201.5 | |+163.9
|
| | | | | | | |
|
| |Potash and Magnesium Products | |349.2 | |204.8 | |+70.5
|
| |Nitrogen Fertilizers | |43.1 | |(65.8) | |-
|
| |Salt | |161.5 | |93.1 | |+73.5
|
| |Complementary Business Segments| |16.9 | |9.5 | |+77.9
|
| |Reconciliation | |(39.0) | |(40.1) | |-
|
| | | | | | | |
|
|Earnings after operating hedges (EBIT II) |547.9 | |208.0 | |+163.4
|
| | | | | | | |
|
|Financial result | |(104.4) | |(96.7) | |(8.0)
|
| | | | | | |
|
|Earnings before income taxes | |443.5 | |111.3 | |+298.5
|
| | | | | | | |
|
|Earnings before income taxes, adjusted1) | |427.3 | |104.8 | |+307.7
|
| | | | | | | |
|
|Group earnings after taxes | |325.4 | |80.8 | |+302.7
|
| | | | | | | |
|
|Group earnings after taxes, adjusted1) | |313.7| |76.1 | |+312.2
|
| | | | | | | |
|
|Earnings per share, adjusted (EUR)1) |1.64 | |0.46 |
|+256.5 |
| | | | | | | |
|
|Capital expenditure2) | |107.2 | |114.1 | |(6.0)
|
| | | | | | |
|
|Employees as of 30 Sept. (number) | |15,255 | |12,378 | |+23.2
|
| |of which trainees (number) | |645 | |648 | |(0.5)
|
|
|
|
|
|1) The adjusted figures only contain the earnings actually realised on
||operating forecast hedges for the respective reporting period. The changes in
|
|the market value of operating forecast hedges still outstanding, however, are
|
|not taken into account. Any resulting effects on deferred and cash taxes are
|
|also eliminated; tax rate 2010: 28.0% (2009: 27.9%).
|
|
|
|2) Cash-effective investments in or depreciation on property, plant and
|
|equipment, intangible assets.
|

end of announcement euro adhoc
--------------------------------------------------------------------------------

ots Originaltext: K+S Aktiengesellschaft
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Press:

Michael Wudonig

phone: +49 561 9301-1262

fax: +49 561 9301-1666

michael.wudonig@k-plus-s.com

Investor Relations:

Christian Herrmann

phone: +49 561 9301-1460

fax: +49 561 9301-2425

christian.herrmann@k-plus-s.com

Branche: Chemicals
ISIN: DE0007162000
WKN: 716200
Index: DAX, Midcap Market Index, CDAX, Classic All Share, HDAX,
Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / regulated dealing
Hamburg / regulated dealing
Stuttgart / regulated dealing
Düsseldorf / regulated dealing
Hannover / regulated dealing
München / regulated dealing