ICL Delivers Record Results for Q4 & Full Year 2007

2007: $4.1B Sales With $536M Net Income Q4: $1.2B Sales With $165M Net Income

TEL AVIV, Israel, March 30/PRNewswire-FirstCall/ -- Highlights:

2007 2006 Q4 2007 Q4 2006
Sales $4,100.2M $3,258.2M $1,211.0M $839.6M
Operating income $714.7M $536.4M $223.5M $147.7M
Net income $535.6M $373.9M $164.7M $90.2M
Gross margin 36.9% 35.4% 39.3% 38.6%
Operating margin 17.4% 16.5% 18.5% 17.6%
Net margin 13.1% 11.5% 13.6% 10.7%

- Record sales: $4.1 billion sales driven by strong demand for
fertilizers, leading to continued sharp rises in potash and phosphate
fertilizer prices and significantly higher potash sales volumes, as well
as the Supresta acquisition, mitigated by somewhat lower volumes for some
brominated products.

- Record profitability: $535.6 million net profit reflecting price
rises and sales volumes for potash and phosphate fertilizers, countered
by reduced production quantities of some brominated products, the
strengthening of the shekel against the dollar, and increased energy, sea
shipping and raw material prices, as well as some other inputs.

- Acquisitions momentum: Supresta acquired in the third quarter;
Fire-Trol acquired in the first quarter; Biogema and Henkel's water
treatment business acquired in the fourth quarter (Biogema and Henkel
closings were in January 2008).

- Conversion to natural gas supporting environmental
responsibility: after the end of the quarter ICL announced that it signed
an agreement with Yam Tethys for the supply of natural gas

Israel Chemicals Ltd. ("ICL") (TASE:ICL), a multinational fertilizer and
specialty chemicals company, today reported results for the fourth quarter
and full year ended December 31, 2007.

For 2007, sales increased by 25.8% to a record $4,100 million
from $3,258 million in 2006. The rise in sales derived primarily from ICL
Fertilizers, which is benefiting from sharply growing demand and tight
supply, an environment that is leading to steep and continuous increases for
both potash and phosphate fertilizers, and from the acquisition of Supresta,
which contributed approximately $104.9 million since its acquisition in
August 2007. The revenue increase was countered partially by reduced sales of
some bromine-based products. On a geographic basis, sales rose in all target
markets, with particularly strong growth achieved in South America, Asia and
Western Europe.

Operating income for the year was $714.7 million, an increase
of 33.2% compared with $536.4 million in 2006, resulting in an operating
margin of 17.4% compared to 16.5% in 2006. Net income for the period
increased by 43.3% to $535.6 million from $373.9 million in 2006. The
increase in profitability reflected the period's sharp price rises and sales
volumes for potash and phosphate fertilizers; countered partially by reduced
production quantities of some brominated products; the strengthening of the
shekel against the dollar, which increased operating expenses significantly
as expressed in dollar terms; and increased sea shipping, energy and raw
material prices.

Cash flow for the year, excluding securitization activities,
reached $573.0 million, an increase of 60.0% compared to $358.0 million in
2006. This sum included the contribution of $45 million in insurance payments
received during the year in compensation for flood damage. The year's cash
flow, combined with a $437.0 million increase in net financial debt, was the
primary source of funding for the Company's $192.3 million investment in
fixed assets, $354.8 million acquisition of Supresta, and $547.0 million
dividend payments.

For the three month period, sales increased by 44.2% to a
record $1,211.0 million compared to $839.6 million in the fourth quarter of
2006. Operating income for the quarter was a record $223.5 million, an
increase of 51.3% compared with $147.7 million in the fourth quarter of 2006.
Operating margin for the quarter was 18.5% compared to 17.6% in the fourth
quarter of 2006, reflecting the factors explained above. Net income for the
quarter was a record $164.7 million, an increase of 82.5% compared with $90.2
million in the fourth quarter of 2006.

The highlights of ICL's core business segments for 2007
include:

- ICL Fertilizers: sales for 2007 increased by 45.1% to
$2,147.1 million, representing 52.4% of the Company's total revenues (before
offsets of inter-segment sales). This reflected significant price increases
of potash and phosphate fertilizers, together with a sharp rise in quantities
of potash sold as compared to 2006, when sales were low reflecting a
temporary freeze of potash markets.

The segments' operating income for the year increased by
94.5% to $518.9 million, raising the sector's operating margin to 24.7% from
18.0% in 2006. This reflected the sharp rise in selling prices, countered
somewhat by increasing raw material and bulk sea transportation costs,
together with the appreciation of the shekel compared to the dollar.

- ICL Industrial Products: sales for 2007 increased by 10.4%
to $925.0 million, representing 22.6% of total revenues (before offsets of
inter-segment sales). This reflected the addition of $104.9 million in
revenues from Supresta, which ICL acquired on August 14, 2007, together with
an increase in sales of inorganic bromated products (except for drilling
fluids), magnesia and chlorine-based products. This was countered by a
decrease in sales of brominated flame retardants due to a slowdown in the
printed electronics industry and more intense competition, primarily from
China, as well as a decrease in sales of agricultural products due to the
Montreal Protocol.

Operating income for 2007 decreased by 40.5% to $124.2 million
due primarily to the lower sales volumes and reduced manufacturing
quantities, in accordance with sales requirements, together with increased
raw material, energy and other input costs. In addition, the appreciation of
the shekel affected the segment's shekel-based operating expenses.

- ICL Performance Products: sales for 2007 increased by 7.2%
to $1,101.6 million, representing 26.8% of total revenues (before offsets of
inter-segment sales). This reflects the strengthening of the Euro against the
dollar, a rise in the quantities sold of fire safety products in North
America, and price as well as some moderate increases in sales volume for
some of the segment's product lines.

Operating income increased by 3.5% to $88.9 million,
reflecting the rising sales of the segment's higher-margin fire safety
products and the success of its efficiency program, countered partially by
higher raw material costs. After the reporting period, the segment acquired
the water treatment business unit of the Henkel Group, a step which will
expand its operations in the water treatment industry, and Biogema, a leading
European provider of Fire Safety products.

Dividends:

- On March 27, 2008, the Board of Directors declared that a
dividend of $115 million ($114.8 million net of the portion paid to
consolidated companies) would be paid on April 30, 2008.

- On December 17, 2007, the Company paid a dividend totaling
$104.8 million ($104.6 million net of the portion paid to consolidated
companies).

- On September 18, 2007, the Company paid a dividend totaling
$88.1 million ($87.9 million net of the portion due to consolidated
companies).

- On June 18, 2007, the Company paid a dividend totaling $66.8
million ($66.7 million net of the portion paid to consolidated companies).

- On April 25, 2007, the Company paid a dividend of $283.9
million ($283.4 million net of the portion paid to consolidated companies).

Beginning of conversion to natural gas: After the end of the
quarter, in March 2008, the Company signed an agreement to purchase
approximately two billion cubic meters of natural gas from the Yam Thetys
Partnership from 2008-2015. The agreement is estimated at a value of
approximately $250-$330 million at current price levels. The conversion of
many of the Company's manufacturing facilities from fuel oil and liquid gas
to natural gas will significantly reduce their emissions and is expected to
save more than $100 million per year and.

About ICL

ICL is one of the world's leading fertilizer and specialty
chemicals companies. ICL produces approximately a third of the world's
bromine and approximately 10% of its potash. ICL is a leading supplier of
fertilizers in Europe and a major player in specialty fertilizer market
segments. One of the world's most integrated manufacturers and suppliers of
phosphate products, ICL has become the world's leading provider of pure
phosphoric acid and a major specialty phosphate player. The Company employs
approximately 9,900 employees worldwide.

ICL is comprised of three core segments: ICL Fertilizers, ICL
Industrial Products and ICL Performance Products. Its major production
activities are located in Israel, Europe, the US, South America and China,
and are supported by major global marketing and logistics networks. ICL
benefits from exclusive concessions to extract minerals from Israel's Dead
Sea, a vast source of high-quality and low-cost potash, bromine, magnesium
chloride and sodium chloride. ICL also mines phosphate rock from Israel's
Negev Desert and potash and salt from its mines in Spain and the UK.

ICL's (Israel Chemicals Ltd.) revenues for 2007 were $4.1
billion with operating income of $715 million. ICL's shares are traded on the
Tel Aviv Stock Exchange (TASE: ICL).

(financial tables follow)

ICL PRINCIPAL FINANCIAL RESULTS
PERIODS ENDING DECEMBER 31, 2007

3 months ended December 12 months ended December
31, 31,

2007 2006 2007 2006
$ % of $ % of $ % of $ % of
millions sales millions sales millions sales millions sales
Net Sales 1,211.0 100.0 839.6 100.0 4,100.2 100.0 3,258.2 100.0
Gross profit 476.3 39.3 324.5 38.6 1,515.0 36.9 1,153.2 35.4
Operating 223.5 18.5 147.7 17.6 714.7 17.4 536.4 16.5
income
Income before 189.8 15.7 117.3 14.0 641.2 15.6 494.9 15.2
taxes
Net income 164.7 13.6 90.2 10.7 535.6 13.1 373.9 11.5
EBITDA* 274.6 21.6 200.9 23.9 914.2 22.0 735.7 22.6
Net cash (22.5) 88.2 354.6 358.6
provided by
operating
activities
Net cash 149.7 66.2 573 358
provided by
operating
activities
excluding
securitization
transactions
Investment in 67.2 42.0 553.8 137.4
property,
plant and
equipment less
grants
received

* EBITDA is calculated as follows:

3 months ended December 12 months ended December
31, 31,
2007 2006 2007 2006
Net income 164.7 90.2 535.6 373.9
Amortization & 50.6 45.3 195.4 174.5
depreciation
Financing 19.9 14.2 54.1 39.3
expenses, net
Taxes on income 25.4 31.4 113.1 136.7
Unusual or 14.0 19.8 16.0 11.3
one-time expenses
EBITDA 274.6 200.9 914.2 735.7

ICL PRINCIPAL RESULTS FROM CORE BUSINESS SEGMENTS
THREE MONTHS AND FULL YEAR ENDED DECEMBER 31, 2007

3 months ended December 12 months ended December
31, 31,
2007 2006 2007 2006
Sales CIF by $ % of $ % of $ % of $ % of
segment millions gross millions gross millions gross millions gross
sales sales sales sales
ICL 675.0 55.7 440.0 52.4 2,147.1 52.4 1,479.6 45.4
Fertilizers
ICL 285.9 23.6 174.1 19.4 925.0 22.6 837.8 23.9
Industrial
Products
ICL 272.8 22.5 251.4 28.0 1,101.6 26.8 1,027.9 29.4
Performance
Products
Other and (22.7) (25.9) (73.5) (87.1)
offsets
Total 1,211.0 839.6 4,100.2 3,258.2

Note: Segment sales data and their percentage of total sales are before
offsets of inter-segment sales.

3 months ended December 31, 12 months ended December 31,
2007 2006 2007 2006
Operating $ %of $ %of $ %of $ %of
in- millions segment millions segment millions segment millions segment
come by sales sales sales sales
segment
ICL 187.8 27.8 102.7 23.3 518.9 24.7 266.8 18.0
Fertilizers
ICL 22.3 7.8 31.0 17.8 124.2 13.4 208.9 24.9
Industrial
Products
ICL 15.1 5.5 17.0 6.8 88.9 8.0 85.9 8.4
Performance
Products
Other and (1.7) (3.0) (17.3) (23.3)
offsets
Total 223.5 18.5 147.7 17.6 714.7 17.4 536.4 16.5

Press Contact
Fleisher Communications and Public Relations
Amiram Fleisher
+972-3-6241241
amiram@fleisher-pr.com

Source: ICL - Israel Chemicals Ltd

Press Contact: Fleisher Communications and Public Relations, Amiram Fleisher, +972-3-6241241, amiram@fleisher-pr.com

2008-03-30 00:28:56 0322569 PRNEWSWIRE