UNITED
STATES OF AMERICA
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
6-K
REPORT
OF
FOREIGN ISSUER
PURSUANT
TO RULE 13A-16 OR 15D-16
OF
THE
SECURITIES AND EXCHANGE ACT OF 1934
Includes
the free translation of a material event sent by Sociedad Química y Minera de
Chile S.A. to the
Superintendencia de Valores y Seguros de Chile on April 24, 2007
Superintendencia de Valores y Seguros de Chile on April 24, 2007
SOCIEDAD
QUIMICA Y MINERA DE CHILE S.A.
(Exact
name of registrant as specified in its charter)
CHEMICAL
AND MINING COMPANY OF CHILE INC.
(Translation
of registrant's name into English)
El
Trovador 4285, Santiago, Chile (562) 425-2000
(Address
and phone number of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F.
Form
20-F
x Form
40-F
o
Indicate
by check mark whether the registrant by furnishing the information contained
in
this Form is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes
o No
x
If
"Yes"
is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82___________
 |
For
Immediate release
SQM
reports earnings for FIRST QUARTER 2007
|
|
Highlights
· First
quarter 2007 earnings per ADR increased 25.3% to US$1.3 from US$1.63
for
first quarter 2006.
· Operating
income for first quarter 2007 was 21.1% higher than that of first
quarter
2006.
· During
the last 6 years, quarterly net income has been higher than the
net income
of the same quarter of the previous
year.
|
Santiago,
Chile, April 25, 2007.- Sociedad
Química y Minera de Chile S.A. (SQM) (NYSE: SQM, SQMA; Santiago Stock Exchange:
SQM-B, SQM-A) reported today earnings
for
the
first quarter of 2007, which reached US$43.0 million (US$1.63 per ADR), 25.3%
higher than the US$34.3 million (US$1.3 per ADR) recorded during the first
quarter of 2006. Operating
income
reached
US$58.8 million (25% of revenues), 21.1% higher than the US$48.6 million (22%
of
revenues) of the previous year. Revenues
reached
US$237.2 million, approximately 8.2% higher than the US$219.1 million recorded
for the same period of 2006.
Patricio
Contesse, Chief Executive Officer, stated, “The good results achieved during
first quarter confirm our positive perspectives for the year 2007”. He added
“The demand growth and the price trend of our main business lines set a positive
scenario for the near future”
|
SQM
Los
Militares 4290 Piso 6,
Las
Condes, Santiago, Chile
Tel:
(56 2) 425 2485
Fax:
(56 2) 425 2493
www.sqm.com
|
 |
2
The
analysis of the different business areas is the
following:
1.-
Specialty
Plant Nutrition
During
the first quarter of 2007 revenues reached US$102.1 million, 4.6% lower than
the
US$107.0 million recorded for the first quarter of 2006.
Quarterly
volumes were lower year over year mainly due to the delay of sales of sodium
potassium nitrate to the Brazilian market. Volume sales were approximately
45
thousand metric tons during first quarter 2006 and no sales were recorded during
first quarter 2007. We expect, however, that total sales volumes to the
Brazilian market during 2007 will be higher than in 2006.
Notwithstanding
the lower total sales volumes during this quarter, market demand continues
to be
strong and the company expects that this trend will continue in the near future.
The company expects that specialty plant nutrition sales volumes for 2007 will
be higher than last year.
Sales
prices were slightly higher and production costs were similar to those recorded
during the same period last year.
Specialty
plant nutrition gross
margin(1)
for the
first quarter of 2007 represented approximately 33% of SQM’s consolidated gross
margin.
2.-
Iodine
and iodine derivatives
Iodine
and iodine derivatives revenues for the first quarter of 2007 reached US$51.9
million, similar to the US$52.0 million recorded during the first quarter of
2006.
Iodine
sales volumes during the first quarter 2007 were lower than those obtained
during the first quarter 2006. SQM expects that sales volumes for the next
three
quarters will be similar to those registered in the same period of last
year.
Sales
prices during the first quarter 2007 increased approximately US$2 per kilogram
compared with the same period of the previous year, and are slightly higher
than
fourth quarter 2006. Additionally, iodine production costs were slightly lower
than last year.
Iodine
and iodine derivatives gross
margin
for the
first quarter 2007 represented approximately 27% of SQM’s consolidated gross
margin.
3.-
Lithium
and lithium derivatives
Lithium
and lithium derivatives revenues for the first quarter of 2007 reached US$44.6
million, 72.7% higher than the US$25.8 million reached for the same period
of
2006.
Higher
revenues in this business line are explained by a significant increase in
volumes and sales prices. The strong demand observed during the last few years,
combined with the high capacity utilization rates in the industry, have put
an
upward pressure on prices. This tight supply scenario generated a continuous
increase in prices during the last two years.
3
The
increase in sales volumes during first quarter is mainly explained by higher
sales to Asia and Europe, to the Batteries and Glasses industries respectively.
We expect, however, that full year sales volumes will be similar to those of
2006, due to the fact that SQM is currently working at full capacity. The
expected strong market growth should be captured by new production coming from
China.
Lithium
and lithium derivatives gross
margin
for the
first quarter 2007 represented approximately 30% of SQM’s consolidated gross
margin.
4.-
Industrial
chemicals
Industrial
Chemicals revenues during the first quarter of 2007 reached US$19.6 million,
12,9% higher than the US$17.3 million recorded for the same period of the
previous year.
This
increase in revenues is mainly explained by increases in both sales volumes
and
prices.
Sales
volumes of industrial nitrates increased due to a higher demand of sodium
nitrate from the explosives industry in Europe and Latin America.
For
the
year 2007 we also expect an increase in prices and sales volumes compared with
the year 2006.
Industrial
chemicals gross
margin
for the
first quarter 2007 represented approximately 6% of SQM’s consolidated gross
margin.
5.-
Others
Potassium
chloride
Revenues
for the first quarter of 2007 reached US$8.1 million, higher than the US$4.1
million reached during the same period of 2006.
We
expect
that full year sales volumes of potassium chloride will be significantly higher
than last year’s volumes, positively affecting margin contribution.
Other
commodity fertilizers
Sales
of
other commodity fertilizers, decreased from US$12.9 million during the first
quarter of 2006, to US$10.9 million during the same period of 2007.
Lower
sales of commodity fertilizers are mainly explained by the sale of our Mexican
subsidiary Fertilizantes Olmeca during last quarter of last year.
Others gross
margin
for the
first quarter 2007 represented approximately 4% of SQM’s consolidated gross
margin.
4
Selling
and administrative expenses
Selling
and Administrative Expenses reached US$14.2 million (6% of revenues) during
the
first quarter of 2007 compared to the US$15.6 million (7.1% of revenues)
recorded during the same period of the previous year.
Non-operating
Income
The
company recorded a non-operating loss for the first quarter of 2007 of US$(4.7)
million which is lower than the US$(5.5) million loss for the same period of
the
previous year.
Net
financial expenses(2)
reached
US$(2.8) million during first quarter 2007, lower than the US$(3.7) million
of
first quarter 2006. This decrease in net financial expenses reflects the lower
interest rate of the new long-term debt and the increase in capitalized
interests related to our capex plan.
Other
non-operating during first quarter 2007 reached US$(1.9) million, similar to
that recorded during the first period of the last year.
Capital
expenditures
For
2007,
the company has budgeted total capital expenditures of approximately US$230
million, primarily for
| · |
the
completion of the María Elena
project
|
| · |
the
investment in a new potassium nitrate production facility at Coya
Sur
|
| · |
the
completion of the granular and prilling facility located at Coya
Sur
|
| · |
the
renewal of our railroad and rolling
stock
|
| · |
the
investment in the expansion of lithium carbonate production and the
Salar
de Atacama operation
|
| · |
the
development of new mining areas at Pedro de Valdivia;
and
|
| · |
various
projects designed to maintain capacity, increase yields and reduce
costs.
|
5
Notes:
(1)
Gross
margin corresponds
to consolidated revenues less total costs, including depreciation and excluding
sales and administration expenses.
A
significant portion of SQM’s costs of goods sold are costs related to common
productive processes (mining, crushing, leaching, etc.) which are distributed
among the different final products. To estimate gross margins by business lines
in both periods covered by this report, the Company employed a similar criteria
on the allocation of common costs to the different business areas. This gross
margin distribution should be used only as a general and approximated reference
of the margins by business line.
(2)
Net
financial expenses
correspond to total financial expenses net of financial income and capitalized
interests during the period.
SQM
is an
integrated producer and distributor of specialty plant nutrition, iodine and
lithium and industrial chemicals,. Its products are based on the development
of
high quality natural resources that allow the Company to be leader in costs,
supported by a specialized international network with sales in over 100
countries. SQM’s development strategy aims to maintain and strengthen the world
leadership in its three main businesses: specialty plant nutrition, iodine
and
lithium.
This
leadership strategy is based on the Company’s competitive advantages and on the
sustainable growth of the different markets where it participates. SQM’s main
competitive advantages in its different businesses are:
| · |
Low
production costs based in vast and high quality natural
resources.
|
| · |
Know
how and its own technological developments in its various production
processes.
|
| · |
Logistics
infrastructure and high production levels that allow SQM to have
low
distribution costs.
|
| · |
High
market share in all its core
products
|
| · |
International
sales offices with offices in more than 20 countries and sales in
over 100
countries.
|
| · |
Sales
synergies due to the production of a complete range of specialty
plant
nutrition.
|
| · |
Continuous
new product development according to the specific needs of its different
customers.
|
| · |
Conservative
and solid financial position
|
For
further information contact: Patricio
Vargas, 56-2-4252274 / patricio.vargas@sqm.com
Romina
Soza, 56-2-4252074 / romina.soza@sqm.com
Statements
in this press release concerning the Company’s business outlook, future economic
performances, anticipated profitability, revenues, expenses, or other financial
items, anticipated cost synergies and product or service line growth, together
with other statements that are not historical facts, are “forward-looking
statements” as that term is defined under Federal Securities Laws.
Any
forward-looking statements are estimates, reflecting the best judgement of
SQM
based on currently available information and involve a number of risks,
uncertainties and other factors that could cause actual results to differ
materially from those stated in such statements. Risks, uncertainties, and
factors that could affect the accuracy of such forward-looking statements,
are
identified in the public filing made with the Securities and Exchange
Commission, and forward-looking statements should be considered in light of
those factors.
6
Income
Statement
|
(US$
Millions)
|
For
the 3-month period
ended
March 31,
|
||||||
|
2007
|
2006
|
||||||
|
Revenues
|
237,2
|
219,1
|
|||||
|
Specialty
Plant Nutrition
|
102,1
|
107,0
|
|||||
|
Potassium
nitrate and Blended Fertilizers(1)
|
88,8
|
94,8
|
|||||
|
Potassium
Sulfate
|
13,3
|
12,3
|
|||||
|
Industrial
Chemicals
|
19,6
|
17,3
|
|||||
|
Industrial
Nitrates
|
18,1
|
15,8
|
|||||
|
Boric
Acid
|
1,4
|
1,5
|
|||||
|
Iodine
and iodine derivatives
|
51,9
|
52,0
|
|||||
|
Lithium
and lithium derivatives
|
44,6
|
25,8
|
|||||
|
Other
Income
|
19,0
|
16,9
|
|||||
|
Potassium
Chloride (Potash)
|
8,1
|
4,1
|
|||||
|
Others
|
10,9
|
12,9
|
|||||
|
Cost
of Goods Sold
|
(141,4
|
)
|
(133,9
|
)
|
|||
|
Depreciation
|
(22,7
|
)
|
(21,0
|
)
|
|||
|
Gross
Margin
|
73,0
|
64,2
|
|||||
|
Selling
and Administrative Expenses
|
(14,2
|
)
|
(15,6
|
)
|
|||
|
Operating
Income
|
58,8
|
48,6
|
|||||
|
Non-Operating
Income
|
(4,7
|
)
|
(5,5
|
)
|
|||
|
Financial
Income
|
2,6
|
1,9
|
|||||
|
Financial
Expenses
|
(8,4
|
)
|
(7,8
|
)
|
|||
|
Capitalized
Interest (2)
|
3,0
|
2,2
|
|||||
|
Others
|
(1,9
|
)
|
(1,8
|
)
|
|||
|
Income
Before Taxes
|
54,1
|
43,0
|
|||||
|
Income
Tax
|
(10,6
|
)
|
(8,4
|
)
|
|||
|
Other
Items
|
(0,6
|
)
|
(0,4
|
)
|
|||
|
Net
Income
|
43,0
|
34,3
|
|||||
|
Net
Income per ADR (US$)
|
1,63
|
1,30
|
|||||
(1)
Includes Blended Fertilizers, Yara Specialty Fertilizers and Other Specialty
Fertilizers
(2)
Capitalized Interests in fixed assets
7
Balance
Sheet
|
As
of March 31
|
|||||||
|
2007
|
2006
|
||||||
|
Current
Assets
|
858,2
|
787,5
|
|||||
|
Cash
and cash equivalents (1)
|
168,2
|
128,8
|
|||||
|
Account
receivables (2)
|
242,2
|
220,0
|
|||||
|
Inventories
|
384,0
|
376,2
|
|||||
|
Others
|
63,8
|
62,5
|
|||||
|
Fixed
Assets
|
932,5
|
867,2
|
|||||
|
Other
Assets
|
105,4
|
124,9
|
|||||
|
Investment
in related companies (3)
|
52,8
|
67,4
|
|||||
|
Others
|
52,6
|
57,5
|
|||||
|
Total
Assets
|
1.896,2
|
1.779,5
|
|||||
|
Current
Liabilities
|
180,6
|
426,9
|
|||||
|
Short
term interest bearing debt
|
43,7
|
270,1
|
|||||
|
Others
|
136,9
|
156,8
|
|||||
|
Long-Term
Liabilities
|
548,3
|
264,4
|
|||||
|
Long
term interest bearing debt
|
479,7
|
202,1
|
|||||
|
Others
|
68,6
|
62,3
|
|||||
|
Minority
Interest
|
39,0
|
34,9
|
|||||
|
Shareholders'
Equity
|
1.128,3
|
1.053,2
|
|||||
|
Total
Liabilities
|
1.896,2
|
1.779,5
|
|||||
|
Current
Ratio (4)
|
4,8
|
1,8
|
|||||
|
Net
Debt / Total capitalization (5)
|
23,3
|
%
|
24,0
|
%
|
|||
(1)
Cash
+ time deposits + marketable securities
(2)
Account receivables + account receivables from related co.
(3)
Investment in related companies net of goodwill and neg. goodwill
(4)
Current assets / current liabilities
(5)
Net
Interest bearing debt/ (Net Interest bearing debt + Equity+ Minority
Int.)
8
Signatures
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
|
SOCIEDAD
QUIMICA Y MINERA DE CHILE S.A.
|
||
| |
|
|
| By: | /s/ Ricardo Ramos | |
|
Ricardo
Ramos
|
||
|
Chief
Financial Officer &
Business Development SVP Date: April 24,
2007
|
||
9