EANS-News: K+S Aktiengesellschaft / Considerable rise in third quarter revenues and earnings / Prospects for fertilizer and salt businesses continue to be favourable

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Financial Figures/Balance Sheet/quarterly report/9-month report

Kassel (euro adhoc) - Kassel, 10 November 2011

Considerable rise in third quarter revenues and earnings Prospects
for fertilizer and salt businesses continue to be favourable

• Globally high demand for fertilizers in last quarter • Quarterly
revenues rise by 17% to EUR 1.17 billion • Operating earnings EBIT I
improve almost 70% to EUR 198.5 million • Adjusted earnings per
share from continued operations reach EUR 0.69 (Q3/2010: EUR 0.25)
• More detailed outlook for 2011:

- Significant increase in revenues to between EUR 5.00 billion and EUR 5.25
billion expected (previously: EUR 5.00 billion to EUR 5.3 billion; 2010:
EUR
4.63 billion)
- Operating earnings EBIT I should increase to between EUR 0.95 billion and
EUR 1.00 billion (previously: EUR 0.95 billion to EUR 1.05 billion; 2010:
EUR
0.71 billion)
- Adjusted earnings per share from continued operations expected to be
between EUR 3.40 and EUR 3.60 (previously: between EUR 3.40 and EUR 3.75;
2010:
EUR 2.34 / share)

In the third quarter of the current year too, the K+S Group
was able to considerably increase revenues and earnings in
comparison with the same period of the previous year. Globally high
demand for fertilizers and the accompanying significantly higher
potash price level played a decisive role in this
development.

"Due to the attractive demand and price trends in the course of the
first nine months, we continue to assume that our earnings will rise
strongly this year," says Norbert Steiner, Chairman of the Board
of Executive Directors of K+S Aktiengesellschaft.

"The currently omnipresent uncertainty regarding the future
economic development of the global economy has prompted us to be
somewhat more cautious in respect of our estimate for 2012. With
an expected stable development of revenues, from today´s
perspective, we see good opportunities for the coming year to
carry forward the high level of earnings of 2011," Steiner continues.

Strong demand for fertilizers and significantly higher potash price
level The third quarter of 2011 was characterised by strong demand
for fertilizers. The high level of agricultural prices favoured
the income prospects of the agricultural sector, so that there
was a significant incentive to raise yields per hectare through
the needs-based use of fertilizers. For potash and magnesium
products, this resulted in a very high utilisation of
production capacities throughout the world. This environment favoured
the development of prices for potassium chloride.

In the third quarter, the nitrogen fertilizer plants were also
well utilised worldwide, and demand for complex and straight
nitrogen fertilizers as well as ammonium sulphate stood at a high
level. Prices for nitrogen fertilizers rose significantly in
comparison to the same quarter of last year, after significant price
increases were also recorded for raw materials.

Continued high demand for de-icing salt In the Western European
pre-stocking business, the above-average wintry weather conditions
in the 2010/11 season led to continued high demand for de-icing salt
in the third quarter. The price level has risen tangibly for the
winter season 2011/12. However, as a result of lower freight rates
for salt imports, moderate price declines occurred in the local
tenders on the East Coast of the United States. In the other
de-icing salt regions of the United States important for K+S and
in Canada too, the demand for de-icing salt improved in the
third quarter in comparison to the previous year. Prices are stable
in the Midwest region, while a slight price increase is to be
observed in Canada.

Third quarter revenues rise by 17% At EUR 1,174.0 million,
third-quarter revenues were up EUR 173.5 million or 17% on the
figure for the same period last year. The Potash and Magnesium
Products and Nitrogen Fertilizers business segments achieved
significant revenue increases due to higher prices. Revenues of the
Salt business segment were stable at a high level. In the first
nine months, revenues of the K+S Group rose in particular due
to price factors by 15% and reached about EUR 3.9 billion.

In the first nine months, 41% of revenues were generated in the
Potash and Magnesium Products business segment, followed by
Salt (33%) and Nitrogen Fertilizers (23%). The regional
distribution of Group revenues continues to be balanced. Thus,
about 51% of total revenues were generated in Europe and 49%
overseas.

Operating earnings strongly up in the third quarter too During the
third quarter of 2011, earnings before interest, taxes, depreciation
and amortisation (EBITDA) rose by 49% to EUR 254.5 million
(Q3/2010: EUR 170.8 million). In the first nine months, EBITDA
achieved EUR 926.9 million, an increase of 34% (9M/2010: EUR 691.6
million).

In the third quarter of 2011, the K+S Group generated operating
earnings EBIT I of EUR 198.5 million and was able to increase this
by EUR 81.1 million or 69% in comparison to the same quarter of
the previous year. The Potash and Magnesium Products business
segment was able to strongly improve its result year on year. The
significantly higher potash price level was the decisive factor
here. In the Nitrogen Fertilizers business segment, rising prices
more than made up for higher input costs. Against this backdrop,
the result rose significantly here too. By contrast, the Salt
business segment achieved a lower result than in the previous year.
The decline can particularly be attributed to weather-related
production losses on the Bahamas, higher costs for demurrage
charges and negative currency effects. In the first nine months of
2011, the K+S Group achieved operating earnings of EUR 758.8
million. This exceeded the previous year´s figure (9M/2010: EUR
515.9 million) by 47%.

Adjusted earnings before income taxes improve strongly The adjusted
earnings before income taxes reached EUR 184.6 million in the
quarter under review. It proved possible to increase this by EUR
118.9 million or 181% in comparison to the same period of the
previous year. In addition to the good development of operating
earnings, this also benefited from a significantly improved
financial result. In the first nine months, the K+S Group
achieved adjusted earnings before income taxes of EUR 714.4
million (9M/2010: EUR 414.5 million). Details of the adjustment can
be found on pages 9 and 10 of the Quarterly Financial Report
Q3/2011.

Adjusted Group earnings also increase strongly It proved possible
to increase adjusted Group earnings from continued operations
by EUR 83.2 million or 171% to EUR 131.9 million during the
third quarter. In the first nine months, adjusted Group earnings
from continued operations of EUR 520.3 million were achieved. This
corresponds to an increase of EUR 215.2 million or 71% in comparison
to the same period of the previous year.

Adjusted earnings per share from continued operations in the third
quarter at EUR 0.69 (Q3/2010: EUR 0.25) per share For the quarter
under review, adjusted earnings per share from continued
operations amounted to EUR 0.69 and were thus about 176% above
the previous year´s figure of EUR 0.25. As in the same quarter last
year, it was computed on the basis of 191.40 million no-par value
shares, being the average number of shares outstanding. In the
first nine months of 2011, adjusted earnings per share from
continued operations reached EUR 2.72, an increase of 71% after
having been EUR 1.59 in the same period of the previous year.

More detailed outlook for 2011 as a whole After the normalisation of
demand for fertilizers in 2010, an increase in demand in the
current year is to be expected. Although the prices of some
agricultural products decreased in the course of the year after
having been very high, they nevertheless remain at a level which
should favour the income prospects of the agricultural sector and
thus offer an incentive to increase the yield per hectare
through a needs-based use of fertilizers. However,
uncertainties currently exist on the trading side, which, with the
financial crisis 2008/9 still on people´s minds, is rather
cautiously attempting to manage its early stocking-up for the end
of the year. But, on the other hand, the trading sector tries to
avoid not having enough products in stock for the coming
application season, while cereal prices remain attractive. Taking
all this into consideration, unchanged global potash sales volumes of
about 58 to 60 million tonnes in 2011 as a whole (2010: 58.3
million tonnes) can be assumed. Correspondingly, a globally high
level of utilisation of production capacities is also to be
expected during the remaining months of the year.

In the case of nitrogen fertilizers too, high demand will probably
be observed for the rest of 2011. The average prices of nitrogen
fertilizers should be at a significantly higher level year on
year. However, considerably higher raw material costs, especially
for ammonia, will counteract this.

In the last weeks of 2011, the de-icing salt business will be
influenced decisively by wintry weather conditions in Europe and
North America. In this respect, it can be assumed that sales
volumes will be on their multi-year average level in the case of
both the European and North American markets. While demand for
industrial salt should remain stable in Europe and South
America, in the case of water softening products, a certain
degree of reluctance to purchase due to the muted economic situation
in the United States can be assumed. Demand for food grade salt in
Europe and North America should also be stable. The South American
market for food grade salt should, however, further grow in line
with the population development there. The demand of the chemical
industry for salts for chemical use should continue to develop
stably in Europe as well as in North and South America.

K+S Group revenues likely to rise significantly in 2011 Following up
the estimates in the outlook of the Financial Report 2010 and
against the backdrop of the better-than-expected demand and price
trends during the first nine months of 2011, revenues of the K+S
Group are likely to rise significantly in financial year 2011
against the previous year. A figure of between EUR 5.00 billion
and EUR 5.25 billion (previously: EUR 5.0 billion to EUR 5.3
billion; previous year: EUR 4.63 billion) seems realistic
from today´s perspective. While in the Potash and Magnesium Products
business segment, we are assuming a significant increase in
revenues and in the Nitrogen Fertilizers business segment (without
COMPO) a strong one, in the Salt business segment we expect a
stable revenue trend at the high level of the previous year.
The revenue forecast assumes an average US dollar exchange rate of
1.40 USD/EUR (previously: 1.42 USD/EUR; 2010: 1.33 USD/EUR).

Operating earnings likely to rise strongly in 2011 In financial year
2011, earnings before interest, taxes, depreciation and
amortisation (EBITDA) and operating earnings EBIT I should increase
strongly in comparison to the figures for the previous year. For
the EBITDA of the K+S Group, a figure of EUR 1.15 billion to EUR
1.25 billion (previously: EUR 1.15 billion to EUR 1.30 billion;
previous year: EUR 953.0 million) and operating earnings EBIT I of
between EUR 0.95 billion and EUR 1.00 billion (previously: EUR 0.95
billion to EUR 1.05 billion; previous year: EUR 0.71 billion) is
thus likely to be achieved. This can be attributed to the
strongly rising earnings in the Potash and Magnesium Products
and Nitrogen Fertilizers business segments. However, the
operating earnings of the Salt business segment will
probably decline moderately. On the basis of the average US dollar
estimate of 1.40 USD/EUR for 2011 (previously: 1.42 USD/EUR;
previous year: 1.33 USD/EUR) and the hedging instruments used,
there is a significantly positive currency effect, which more than
makes up for the currency-related revenue losses. The forecast is
based on the following assumptions:

• continued attractive agricultural prices;
• in comparison to the previous year, significantly higher average prices
and stable sales volumes in the Potash and Magnesium Products business
segment (expected sales volume: about 7 million tonnes);
• sales volumes of a good 23 million tonnes of crystallised salt in the
Salt business segment, of which about 14 million tonnes should be
accounted for by de-icing salt. For the fourth quarter, this, as
customary, assumes the average of multi-year de-icing salt sales
volumes.

Group earnings after taxes will probably improve strongly in 2011 The
adjusted Group earnings after taxes of the continued operations
should also increase strongly in 2011 in line with the development
of operating earnings and reach a value of between EUR 650 million
and EUR 690 million (previously: EUR 650 million to EUR 720
million; previous year: EUR 447.8 million). This would
correspond to adjusted earnings per share of the continued operations
of about EUR 3.40 to EUR 3.60 (previously: EUR 3.40 to EUR 3.75;
previous year: EUR 2.34). Taking into consideration the discontinued
operations including the expected book loss arising from the
disposal of COMPO, adjusted Group earnings after taxes of EUR 550
million to EUR 590 million (previously: EUR 560 million to EUR
630 million; previous year: EUR 445.3 million) are to be assumed.
This would correspond to adjusted earnings per share of about EUR
2.90 to EUR 3.10 per share (previously: EUR 2.95 to EUR 3.30;
previous year: EUR 2.33). This estimate is based not only on the
effects described for revenues and operating earnings, but
also on the following circumstances expected from today's
perspective:

• a significantly better financial result, after this had been negatively
impacted by special effects in 2010;
• a domestic Group tax rate of 28.3% and an adjusted Group tax ratio of
about 27% (previously: 26% to 27%; 2010: 26.2%).

Forecast for 2012: Continued high global potash sales volumes
expected For 2012, the K+S Group expects global potash sales
volumes of at least 60 million tonnes (2011: 58 to 60 million
tonnes expected). The estimate is based primarily on a continued
level of prices for agricultural raw materials which is attractive
for the earnings prospects of the agricultural sector.

The positive development of demand should continue in 2012 in
the case of straight nitrogen fertilizers and complex fertilizers
too.

In this respect, for 2012, sales volumes are expected to be on their
multi-year average level in the case of both the European and North
American markets for de-icing salt. After an above-average demand
in Europe and on the East Coast of the United States in the first
quarter of 2011, the sales volumes of de-icing salt should
correspondingly decrease to a normal level again in the first
quarter of 2012. The consumption of food grade salt and
industrial salt in Europe as well as North and South America will
probably be stable in 2012. The demand of the chemical industry
for salt for chemical use should rise moderately.

Stable revenue development and high earnings level likely The
currently omnipresent uncertainty regarding the future economic
development of the global economy has prompted K+S to be more
cautious in respect of its estimate for 2012 and thereby to
take the lower visibility into account. Revenues for 2012 should
develop stably in comparison to the high figure for the previous
year. While in the Potash and Magnesium Products business segment a
tangible increase in revenues can be assumed, in the Nitrogen
Fertilizers business segment a stable development of revenues and
in the Salt business segment moderately lower revenues will
probably be seen. As for the costs of the K+S Group, moderately
rising personnel and significantly rising energy costs are
confronted with stable material costs, depreciation and
amortisation as well as tangibly declining freight costs. In total,
a largely stable cost level can therefore be expected. As far as
operating earnings EBIT I of the K+S Group and adjusted Group
earnings after taxes are concerned, from today's perspective,
there are good opportunities for the coming year to keep them at
their respective high levels of 2011.

In the Potash and Magnesium Products business segment, a slightly
improving earnings development and in the Nitrogen Fertilizers
business segment a largely stable one should be observed. On the
other hand, the operating earnings of the Salt business segment will
probably decline significantly on the basis of a normal winter
business that follows the long-term average of historical de-
icing salt volumes. This estimate for the coming year is based on a
number of factors including the following:

• continued attractive agricultural prices;
• tangibly higher average prices and an expected sales volume of about 7
million tonnes in the Potash and Magnesium Products business segment;
• at about 22 million tonnes on average and in comparison to the record
sales volumes of the previous year tangibly lower sales volumes of
crystallised salt (of which de-icing salt: a good 12 million tonnes);
• a US dollar exchange rate of 1.40 USD/EUR and a negative currency result;
• a largely unchanged financial result;
• a slightly higher adjusted Group tax ratio of 27% to 28%.

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 14,000 people. The K+S share - the commodities stock on the
German DAX index - is listed on all German stock exchanges (ISIN:
DE000KSAG888, symbol: SDF). More information about K+S can be found
at www.k-plus-s.com.

Note to editors The Quarterly Financial Report (Q3/2011), the K+S
Q3/2011 Facts & Figures (English), a video webcast by Norbert
Steiner, Chairman of the Board of Executive Directors of K+S
Aktiengesellschaft, about the third quarter of 2011 and up-to-date
press photos relating to the K+S Group are available under
http://www.k-plus-s.com/2011q3en.

We are offering a conference call for investors and 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 at
(http://www.k-plus- s.com/2011q3en) or by phone under
+49-69-71044-5598. The conference will be recorded and will also
be available as a podcast.

Your contact persons:
Press:
Michael Wudonig, CFA
phone: +49 561 9301-1262
fax: +49 561 9301-1666
michael.wudonig@k-plus-s.com

Investor Relations:
Christian Herrmann, CFA
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 | |Q3 | |
|
|Q3/2011 | |July - | |July - | |
|
| | |Sep | |Sep | |
|
| | | |20| |20|
|
| | | |11| |10|
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|Earnings before income taxes, adjusted1) | |184.6 | |65.7 | |+181.0
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|K+S Group at a Glance | |9M | |9M | |
|
|Jan - Sep/2011 | |Jan - Sep| |Jan - Sep| |
|
| | | |20| |20|
|
| | | |11| |10|
|
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|Earnings before income taxes, adjusted1) | |714.4 | |414.5 | |+72.4
|
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|
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|
| | | | | | |
|
| | | | | | |
|
| | | | | | |
|
|Employees as of 30 September (number) | |14,433 | |14,197 | |+1.7
|
|
|

Further inquiry note:
Your contact persons:
Press:
Michael Wudonig, CFA
phone: +49 561 9301-1262
fax: +49 561 9301-1666
michael.wudonig@k-plus-s.com

Investor Relations:
Christian Herrmann, CFA
phone: +49 561 9301-1460
fax: +49 561 9301-2425
christian.herrmann@k-plus-s.com

K+S Aktiengesellschaft
Communications
P.O. Box 10 20 29, 34111 Kassel, Germany
Bertha-von-Suttner-Str. 7, 34131 Kassel
www.k-plus-s.com
__________________________________________________________

Chairman of the Supervisory Board: Dr. Ralf Bethke
Board of Executive Directors: Norbert Steiner (Chairman), Joachim Felker, Gerd
Grimmig, Dr. Thomas Nöcker, Jan Peter Nonnenkamp
Registered Office: Kassel
Commercial Register: Kassel HRB 2669

end of announcement euro adhoc
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company: K+S Aktiengesellschaft
Bertha-von-Suttner-Straße 7
D-34131 Kassel
phone: +49 (0)561 9301-1460
FAX: +49 (0)561 9301-2425
mail: christian.herrmann@k-plus-s.com
WWW: http://www.k-plus-s.com
sector: Chemicals
ISIN: DE000KSAG888
indexes: DAX, Midcap Market Index, CDAX, Classic All Share, HDAX, Prime All
Share
stockmarkets: official dealing/prime standard: Frankfurt, regulated dealing:
Stuttgart, München, official dealing: Berlin, Hamburg, Hannover
language: English