SQM Q1 profits increase 77% to US$25mn

Chilean non-metallic miner Sociedad Química y Minera (SQM; NYSE: SQM) posted first quarter 2005 earnings of US$24.8mn, up nearly 77% from 1Q04, the company said in a statement. Operating income rose nearly 57% to US$37.9mn during the same period, while revenues rose 22% to US$207mn. CEO Patricio Contesse said revenues for the company's three main specialty businesses - plant nutrition, iodine and lithium - all increased in the first quarter thanks to the price recovery trend that began last year. "Although the significant increase in earnings is good news, we have to keep in mind that the first quarter of 2004 was the quarter with lowest results last year. We must remain cautious as we still face many challenges, like higher energy cost," he said. "Nonetheless, we are confident that we will continue delivering results, significantly increasing our earnings during 2005." SQM is one of the world's largest producers of industrial minerals such as lithium, phosphates and iodine, mostly from its mines in northern Chile.