SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
July 28, 1994
IMC FERTILIZER GROUP, INC.
(Exact name of registrant as specified in charter)
Delaware 1-9759 36-3492467
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
2100 Sanders Road, Northbrook, IL 60062
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (708) 272-9200
Item 5. Other Events
The following is the text of a press release relating to fourth
quarter earnings of the Company.
NORTHBROOK, IL., July 28, 1994 -- IMC Fertilizer Group, Inc.
(NYSE symbol: IFL) today reported fourth quarter net earnings of
$15.7 million, or 56 cents per share, including an extraordinary
charge of $1.4 million or 5 cents per share related to debt
retirement. This compares to a net loss of $26.7 million, or $1.21
per share for the year-earlier period.
The Company also reported significantly improved results for
fiscal 1994 which ended June 30. The year's net loss totaled $28.8
million, or $1.14 per share, compared to the prior year's loss of
$167.1 million, or $7.57 per share.
Excluding all non-recurring items, listed below, the Company's
fiscal 1994 earnings were $11.0 million, or 44 cents per share,
compared to 1993 earnings of $.5 million, or 2 cents per share.
Non-recurring items in fiscal 1994 include:
The $1.4 million, or 5 cents per share, extraordinary charge
related to debt retirement noted above;
A $20.3 million ($12.4 million after tax), or 49 cents per share
charge for an oil and gas investment write-down recorded in the
second quarter;
An extraordinary charge, net of tax, of $23.8 million, or 95
cents per share, recorded in the first quarter for the early
extinguishment of $220 million of IMC Fertilizer debt;
A charge of $4.1 million, or 16 cents per share, recorded in the
first quarter for the adjustment to the Company's net deferred tax
liability for the effect of changes in U.S. corporate tax rates, and
A fourth quarter gain of $1.9 million, or 7 cents per share,
resulting from the sale by IMC-Agrico Company of its Florida cattle
ranch.
One-time, after-tax charges recorded in fiscal 1993 include:
$47.1 million, or $2.13 per share, for the cumulative effect on
prior years of a change in the accounting for post-retirement
benefits;
$109.1 million, or $4.94 per share, related to the
settlement of litigation resulting from the 1991 explosion at a
facility managed by the Company in Sterlington, Louisiana, and
$11.4 million, or 52 cents per share, recorded in the
fourth quarter related to the settlement of a dispute over the
insurance claim receivable resulting from the water inflow at
one of the Company's Canadian potash mines.
Net sales for fiscal 1994 were $1.442 billion, compared to
fiscal 1993's net sales of $897 million. Sales for the fourth
quarter totaled $435.7 million, compared to the $255.9 million
recorded for the same period a year ago.
Full-year and fourth quarter 1993 pro forma sales
reflecting the IMC-Agrico Company joint venture with
Freeport-McMoRan Resource Partners, Limited Partnership as if
the joint venture had been in effect July 1, 1992, would have
been $1.470 billion and $411.8 million, respectively.
"We are encouraged by our fourth quarter performance and
the continued improvement in our balance sheet throughout
fiscal 1994," said Wendell F. Bueche, president and chief
executive officer. "Operating earnings in the fourth quarter
reached $80.3 million, a 22 percent increase from the third
quarter level of $65.7 million. The year's substantial
progress reflects increased demand and generally higher prices
for our products, as well as cost savings at IMC-Agrico.
"In addition, the Company benefited from an operating
philosophy which avoids costly inventories by more closely
balancing product output with customers' needs," he said.
"This approach, which focuses on timely customer demands rather
than optimal operating rates, served us well throughout fiscal
1994."
IMC's chief executive also noted that during the fourth
quarter IMC-Agrico sold its Florida cattle ranch for $16
million. In addition, the joint venture established a pre-tax
reserve of $1.9 million for anticipated costs related to a
large hole discovered on top of the original phosphogypsum
storage area at the New Wales, Florida phosphate plant.
IMC-Agrico is proceeding with plans to determine the
appropriate actions to be taken with regard to the hole which
is possibly the result of sinkhole activity.
"Looking forward, the prospects for our business are
encouraging," said Bueche. "The past year's improvements in
our markets, product pricing and operating efficiencies should
continue given ongoing health in global agriculture.
Accordingly, we believe it is incumbent on IMC to maintain its
customer-focused, low-cost position so it can fully participate
in the emerging worldwide opportunities for crop nutrient
products."
IMC Fertilizer is one of the world's leading producers of
crop nutrients for agriculture. It mines and processes potash
in the United States and Canada; and is a joint-venture partner
in IMC-Agrico Company, the nation's largest producer, marketer
and distributor of phosphate crop nutrients. The Company also
produces sulphur and oil through other joint-venture
operations.
IMC FERTILIZER GROUP, INC.
($ in millions except per share amounts)
Quarter ended Year ended
June 30, June 30,
1994 1993 1994 1993
Net sales $ 435.6 $ 255.9 $1,441.5 $ 897.1
Cost of goods sold 346.9 232.3 1,233.9 772.2
Gross margins 88.7 23.6 207.6 124.9
Selling, general and
administrative expenses 20.6 15.1 66.0 60.4
Sterlington litigation
settlement, net (a) 169.1
Other operating (income) and
expense, net (b) (12.2) 36.1 (25.7) 25.1
Operating earnings (loss) 80.3 (27.6) 167.3 (129.7)
Equity in (earnings) loss of
oil and gas joint venture (c) (.6) (.9) 20.0 (3.3)
Interest earned and other
non-operating (income) and
expense, net (.9) (.7) 3.4 6.1
Interest charges 18.3 13.8 81.0 44.8
Earnings (loss) before minority
interest and items noted below 63.5 (39.8) 62.9 (177.3)
Minority interest (d) 26.8 55.1
Earnings (loss) before items
noted below 36.7 (39.8) 7.8 (177.3)
Provision (credit) for income
taxes (e) 19.6 (13.1) 11.4 (57.3)
Earnings (loss) before
extraordinary item and
cumulative effect of
accounting change 17.1 (26.7) (3.6) (120.0)
Extraordinary loss-debt
retirement (g) (1.4) (25.2)
Cumulative effect of accounting
change (h) (47.1)
Net earnings (loss) $ 15.7 $ (26.7) $ (28.8) $ (167.1)
Earnings (loss) per share (f):
Earnings (loss) before extra-
ordinary item and cumula-
tive effect of accounting
change $ .61 $ (1.21) $ (.14) $ (5.44)
Extraordinary loss-debt
retirement (g) (.05) (1.00)
Cumulative effect of
accounting change (h) (2.13)
Net earnings (loss) $ .56 $ (1.21) $ (1.14) $ (7.57)
(a) Reflected the settlement of litigation resulting from the
May 1991 explosion at a facility managed by the Company in
Sterlington, Louisiana.
(b) In 1994, included a fourth quarter gain of $5.5 million from
IMC-Agrico's sale of its Florida cattle ranch. In 1993,
included fourth quarter charges of $32.4 million from the
settlement of a claim relating to losses arising out of a
water inflow at one of the Company's potash mines in Canada
and $3.0 million from a settlement of an environmental
issue, partially offset by a gain of $8.1 million in August
1992 from the resolution of a contract dispute with a major
uranium oxide customer.
(c) In 1994, included a charge of $20.3 million resulting from
the write-down of the Company's investment in its oil and
gas partnership.
(d) On July 1, 1993, the Company and Freeport-McMoRan Resource
Partners, Limited Partnership (FRP) entered into a joint
venture partnership in which both companies contributed
their respective phosphate fertilizer businesses to create
IMC-Agrico. The activities of IMC-Agrico, which is operated
by the Company, include the mining and sale of phosphate
rock, and the production, distribution and sale of phosphate
chemicals, uranium oxide and related products. For
financial reporting purposes, IMC-Agrico's results of
operations were consolidated with those of the Company, and
FRP's 43.5 percent interest in the joint venture partnership
was included in the Company's statement of operations as
minority interest. Minority interest reflected on the
Consolidated Statement of Operations is not necessarily
indicative of the results reported by the minority interest
owners.
(e) In 1994, included a charge of $4.1 million for an adjustment
to the Company's net deferred tax liability resulting from
changes in U.S. corporate tax rates.
(f) Earnings (loss) per share were based on the weighted average
number of shares and equivalent shares outstanding. Shares
used in the calculations were 28.3 and 25.3 million shares
for the quarter and year ended June 30, 1994 and 22.1
million shares for the quarter and year ended June 30, 1993.
(g) Consisted of redemption premium incurred by the Company and
write-off of deferred finance costs in connection with the
purchase of $220 million principal amount of the Company's
11.25 percent Notes and portions of its Senior Notes, net of
taxes.
(h) Reflected the cumulative effect of an accounting change for
periods prior to July 1, 1992, resulting from the adoption
of Statement of Financial Accounting Standards No. 106,
"Employers' Accounting for Postretirement Benefits Other
Than Pensions."
SIGNATURE
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 thereto duly
authorized.
IMC FERTILIZER GROUP, INC.
By
___________________________
Marschall I. Smith
Senior Vice President, Secretary
and General Counsel
July 29, 1994
