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Nov 4 (Reuters) - German minerals miner K+S on Wednesday said it will take a one-off non-cash impairment loss of about 2 billion euros ($2.4 billion) on assets, citing lower long-term potash price expectations and a higher cost of capital rate.
The salt and potash fertiliser supplier said the impairment would be included in its third-quarter results due on November 12, and would have a negative impact on adjusted net income after taxes.
“With the impairment, we have now also cleaned up the balance sheet. This gives us more room to shape our future,” Chief Executive Burkhard Lohr said in a statement.
Prices of potash, which is mainly used in fertiliser production, have fallen 24% since the beginning of the year.
The company in October signed an agreement to sell its North and South American salt business for $3.2 billion. K+S had put this business up for sale as part of plans to reduce debt and focus on potash fertiliser products.
The company confirmed its full-year guidance and expects 2020 EBITDA of about 480 million euros after one-time restructuring expenses.
K+S shares were down 1.4% at 1350 GMT, underperforming the German mid-cap index which was up 2%. ($1 = 0.8520 euros) (Reporting by Bartosz Dabrowski in Gdansk, editing by Louise Heavens and Jane Merriman)
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