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IMC FERTILIZER SAYS THIRD QUARTER RESULTS REFLECT LAGGING PRICES OF MAJOR PRODUCTS

 IMC FERTILIZER SAYS THIRD QUARTER RESULTS REFLECT LAGGING PRICES
 OF MAJOR PRODUCTS
 NORTHBROOK, Ill., April 13 /PRNewswire/ -- IMC Fertilizer Group, Inc. (NYSE: IFL) today reported net earnings of $38.5 million, or $1.74 per share, for its third quarter ended March 31, 1992.
 Included in the net earnings were $18.2 million, or 82 cents per share, from the February sale of the company's ammonia production facility at Sterlington, La. Net earnings excluding the sale were $20.3 million, a 9 percent improvement over the $18.6 million reported for the same period a year ago.
 Earnings before the cumulative effect of the change in accounting for income taxes for the company's first nine months of fiscal 1991/92 were $83.3 million, or $3.77 per share, compared with $66.5 million, or $2.56 per share in 1990/91.
 As a result of the previously reported change in accounting for income taxes, the company had a net loss of $82.2 million, or $3.73 per share, for the nine months ending March 31, 1992.
 Sales for the third quarter and nine months were $267.5 million and $778.8 million, respectively, compared with $286.1 million and $828.6 million for the comparable periods in fiscal 1991.
 "The numbers generated during the third quarter were disappointing when measured against corporate objectives, but they were not a surprise," according to Billie B. Turner, IMC Fertilizer chairman and chief executive officer.
 "Prices for our major products remained below expectations despite good tonnage shipped to date in both domestic and international markets. That situation has continued to frustrate all efforts to increase margins to more accurately reflect 'real world demand' for our products," Turner added.
 "Analyzing the results reported today, it is apparent that inadequate prices offset gains in volume and improved production costs, especially for Canadian potash and phosphate chemicals in the quarter."
 IMC Fertilizer Group, Inc., is one of the world's leading private enterprise producers and marketers of two basic fertilizer materials, phosphate rock and potash, and a major manufacturer of concentrated phosphates. The company also produces oil and natural gas, and recovers uranium oxide for upgrading by electric utilities for use as fuel in nuclear power plants.
 IMC FERTILIZER GROUP, INC.
 (In millions, except per share amounts)
 Periods ended Quarter Nine Months
 March 31 1992 1991 1992 1991
 Net sales $267.5 $286.1 $778.8 $828.6
 Cost of goods sold 208.6 228.0 597.7 642.9
 Gross margins 58.9 58.1 181.1 185.7
 S,G&A expenses 15.9 17.2 43.4 46.0
 Other operating (income)
 and expense, net (A) (35.1) (1.5) (36.6) (1.9)
 Operating earnings 78.1 42.4 174.3 141.6
 Interest earned and other
 non-operating (income)
 and expense, net 3.7 3.6 7.4 4.6
 Interest charges 12.0 10.1 34.3 28.9
 Earnings from operations
 before income taxes 62.4 28.7 132.6 108.1
 Provision for income taxes 23.9 10.1 49.3 41.6
 Earnings before cumulative
 effect of accounting change 38.5 18.6 83.3 66.5
 Cumulative effect of
 accounting change (C) -- -- (165.5) --
 Net earnings (loss) $ 38.5 $ 18.6 $ (82.2) $ 66.5
 Earnings (loss) per share (B):
 Earnings before cumulative
 effect of accounting change $1.74 $.75 $ 3.77 $2.56
 Cumulative effect of
 accounting change (C) -- -- (7.50) --
 Net earnings (loss) $1.74 $.75 $(3.73) $2.56
 (A) -- Included a gain of $34.2 million from the sale of the company's ammonia production facility at Sterlington, La.
 (B) -- Earnings per share were based on the weighted average number of shares and equivalent shares outstanding. Shares used in the calculations were 22.2 and 22.1 million shares for the quarter and nine months ended March 31, 1992, and 25.2 and 26.0 million shares for the quarter and nine months ended March, 31, 1991.
 (C) -- Reflected the cumulative effect of an accounting change for periods prior to July 1, 1991, resulting from the adoption of Statement of Financial Standards No. 109, "Accounting for Income Taxes" in February 1992, retroactive to July 1, 1991.
 -0- 4/13/92
 /CONTACT: John E. Galvin (financial), 708-205-4814, or Tom Unzicker (media), 708-205-4839, both of IMC Fertilizer Group/
 (IFL) CO: IMC Fertilizer Group, Inc. ST: Illinois IN: CHM SU: ERN


GK-OS -- NY022 -- 7647 04/13/92 10:20 EDT
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Publication:PR Newswire
Date:Apr 13, 1992
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