23.11.2007 

Ad hoc notification in accordance with Section 15 of the German Securities Trading Act (WpHG)

Depreciation of the US dollar against the euro lowers the operating earnings of the K+S Group by a further € 25 million

Depreciation of the US dollar against the euro lowers the operating earnings of the K+S Group by a further € 25 million / Corresponding reduction in the previous earnings forecast for EBIT I of between € 300 million and € 310 million

The continued decline in the USD/EUR exchange rate to just under 1.50 USD/EUR has made it necessary to implement a further adjustment in the double-barrier options used by the K+S Group to hedge the US dollar. As a result of the restructuring, the average hedge rate, including premium payment, for 2007 will deteriorate from 1.26 USD/EUR to about 1.33 USD/EUR. In addition, the current USD/EUR exchange rate will probably result in a higher decline in the value of outstanding US dollar receivables. We expect these two effects to reduce operating earnings by about € 25 million in total. There will be a corresponding decrease in the previous earnings forecast of between € 300 million and € 310 million for 2007. Further follow-up hedging costs if the 1.50 USD/EUR mark is exceeded cannot be ruled out depending on how the US dollar evolves.

K+S Aktiengesellschaft
Kassel, 23 November 2007
The Board of Executive Directors

End of ad hoc notification

 

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