Investing.com — Shares in Yara International (OL:) slid in European trading on Friday after the fertilizer group posted lower than expected core income in the first quarter.
Adjusted earnings before interest, tax, depreciation and amortization dropped by 11% during the three-month period versus a year ago to $435 million, well below consensus estimates of $509 million. The Oslo-based firm said the decline was due to lower costs, which offset a boost from an increase in sales volumes and decreased energy prices.
Total deliveries rose by 12%, as Yara said strength in Europe and Asia partly outweighed a dip in the Americas region. In the corresponding period last year, production curtailments in Europe stemming from surging gas costs dented deliveries.
Analysts at Morgan Stanley said the uptick in deliveries was “unlikely” to be enough to offset the earnings miss.
Meanwhile, Yara flagged that, based on current forward markets for and “assuming stable gas purchase volumes,” its gas expenses for the second and third quarters will be $120 million and $5 million lower than a year earlier, respectively.
