FRANKFURT (dpa-AFX) - A lowered annual outlook due to falling fertilizer prices disappointed investors in K+S on Tuesday. The shares of the potash and salt group slumped at times by more than six percent in the morning to the lowest level since the beginning of 2022, although the company's first quarter was considered "okay" by the market. Most recently, the minus was still 4.6 percent to around 17 euros.

Because many farmers held back on buying fertilizers in the important first quarter, company CEO Burkhard Lohr now expects operating earnings (Ebitda) of only 1.15 to 1.35 billion euros in 2023. Previously, a decline to 1.3 to 1.5 billion euros was envisaged. K+S also now expects free cash flow to be lower than previously.

According to analyst Charlie Bentley of investment house Jefferies, the market expectation for Ebitda of 1.37 billion euros is just above the new target. One trader mentioned that this was partly due to inflation. However, he criticized the fact that the new outlook would be dependent on price increases in the second half of the year, for which there are as yet no signs.

Markus Mayer of Baader Bank said that although the lowering of the outlook did not come as a surprise after the quarterly reports of competitors, it should nevertheless weigh on the share price. Although the development of business in the first quarter had exceeded expectations in terms of earnings, free cash flow had fallen significantly short of these due to one-off effects. Adjusted for the special items, however, cash flow was roughly in line with expectations.

Tuesday's share price slide coincides with recent weakness at K+S. The share price had still shot up to 36.45 euros in April 2022 shortly after the Russian invasion with fertilizer prices, because Russia and Russia's ally Belarus play a significant role in the world potash market. However, this was followed by an equally rapid correction, which is currently still ongoing. Since then, the share price has halved. With a drop of 8 percent so far this year, the share is currently one of the few losers in the MDax./tih/mis/stk