I M C Global (NYSE:IGL)
Historical Stock Chart
From Jul 2019 to Jul 2024
![Click Here for more I M C Global Charts. Click Here for more I M C Global Charts.](/p.php?pid=staticchart&s=NY%5EIGL&p=8&t=15)
Improving IMC Global Performance, Stronger Market Conditions and
Benefits From Pending Combination With Cargill Crop Nutrition Create Unique
Value Proposition, Shareholders Told at 2004 Annual Meeting
IMC Global Chairman Highlights Special, Pivotal and Increasingly More
Optimistic Time in the Company's History
LAKE FOREST, Ill., May 14 /PRNewswire-FirstCall/ -- Positive factors are
converging in 2004 that have already strengthened the stock price of IMC Global
Inc. and suggest that prospects for increased shareholder value are better
today than they have been for many years, Chairman and Chief Executive Officer
Douglas A. Pertz told shareholders in attendance and those listening by Webcast
at the Company's 2004 Annual Meeting today.
"Stronger agricultural commodity prices and increased world crop nutrient
demand clearly have supported higher fertilizer prices and tighter supply and
demand than we have seen since the global phosphate downturn began," Pertz
said. "This market backdrop for both phosphate and potash crop nutrients is a
solid base from which to build even greater shareholder value with the pending
IMC Global and Cargill Crop Nutrition merger."
In reviewing recent Company performance, Pertz said 2003 proved to be
challenging for most of the year as high raw material costs more than offset
improved diammonium phosphate (DAP) prices and a strong potash performance.
"Even though 2003's operating environment was disappointing, we had begun to
see a number of improving factors as the year ended, including renewed DAP
pricing strength in December and even better potash fundamentals from those
that helped deliver solid performance last year," Pertz said. "In addition,
worldwide agricultural indicators were improving. As a result, we felt IMC
Global was starting from a much firmer base to achieve meaningful margin
improvement in 2004."
Pertz said the premise was confirmed by IMC Global's sharply improved 2004
first quarter results, the best operating performance in many quarters due to
stronger phosphate and potash profits. The Company's gross margins of $78.8
million more than doubled and operating earnings of $62.0 million more than
quadrupled versus the first quarter of 2003 as increased prices more than
offset continued high raw material costs, primarily ammonia.
"In summary, these results provide IMC with a solid and promising start for a
much better 2004, and, versus 2003, we are starting this year with improved
operating cash flow," the IMC Chairman told shareholders. "The seeds of our
first quarter results and increasing optimism about our future performance are
rooted in the continuing improvement of global agricultural and crop nutrient
fundamentals."
Very low global grain and oilseed inventories and rising crop commodity prices,
which historically correlate with increased fertilizer demand, are sending
strong signals to farmers to plant more acres and optimize crop nutrient
application rates to maximize yields, said Pertz. He added that 2003 U.S. net
cash farm income improved 28 percent from 2002, reaching its highest level
ever, and that 2004 global crop nutrient demand is expected to match its 2003
year-over-year increase of three percent as well.
The other major factor creating optimism for improved shareholder value is the
proposed combination of IMC Global and Cargill Crop Nutrition announced on
January 27, 2004. "While we are encouraged by the overall agricultural, crop
nutrient and phosphate cycle recoveries we now see, the pending merger with
Cargill Crop Nutrition should enhance IMC shareholder value even further," said
Pertz.
The IMC Chairman reviewed the benefits of the combination which will create "a
leading, publicly traded global crop nutrient company with a stronger financial
profile and better positioned to deliver customer value and increased
shareholder value." The new company eventually expects to achieve pre-tax,
operational synergies of about $145 million on an annualized basis.
"Importantly and, of course, certainly key to doing the transaction," Pertz
stressed, "this merger is expected to be immediately accretive to IMC Global
shareholders.
"There are a number of reasons why we believe this merger with Cargill is the
right transaction, and at the right time in the cycle, for IMC Global and for
creating increasing value for our shareholders and debtholders," he continued.
"We continue to believe the transaction will close this summer and are actively
planning to maximize value from day one of the combination."
In his closing remarks, Pertz said, "Assuming all conditions to closing the
transaction are satisfied, this is the last regular annual meeting of IMC
Global shareholders. As such, I want to emphasize that the legacy, the values
and the strengths of IMC Global will continue on in the form of a new, stronger
and more global crop nutrient company. The IMC Global name may be
disappearing, but the businesses and our people will be part of an entity that
can offer greater value and be better able to prosper through future cycles."
During the meeting's formal business, shareholders approved two proposals
recommended by IMC Global's Board. The first proposal included the reelection
to the IMC Board of Donald F. Mazankowski, Douglas A. Pertz and Richard L.
Thomas for three-year terms expiring in 2007. The second proposal was the
ratification of Ernst & Young LLP as the Company's independent auditors.
With 2003 revenues of $2.2 billion, IMC Global is the world's largest producer
and marketer of concentrated phosphates and potash crop nutrients for the
agricultural industry and a leading global provider of feed ingredients for the
animal nutrition industry. For more information, visit IMC Global's Web site
at imcglobal.com .
Cautionary Information Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Such statements include,
but are not limited to, statements regarding expected quarterly and annual
results for 2004, expectations regarding the phosphate market recovery and
potash market fundamentals, expectations regarding the proposed transactions
with PLP and Cargill Crop Nutrition, and other statements that are not
historical facts. Such statements are based upon the current beliefs and
expectations of IMC Global's management and are subject to significant risks
and uncertainties. Actual results may differ from those set forth in the
forward-looking statements.
The following factors, among others, could cause actual results to differ from
those set forth in IMC Global's forward-looking statements: increased
competition and its effect on pricing, spending, third-party relationships and
revenues; the risk of new and changing regulation in the U.S. and
internationally; recovery of the phosphate market; DAP and potash pricing,
margins and realizations; the prices of raw materials; and regulatory and
shareholder approvals of pending transactions. Additional factors that could
cause IMC Global's results to differ materially from those described in the
forward-looking statements can be found in the 2003 Annual Report on Form 10-K
of IMC Global filed with the SEC and available at the SEC's Internet site (
http://www.sec.gov/ ).
Not a Proxy Solicitation for IMC Global and Cargill Crop Nutrition Combination
This communication is not a solicitation of a proxy from any security holder of
IMC Global or Cargill, Incorporated. Global Nutrition Solutions, Inc. has
filed a Registration Statement on Form S-4 with the SEC containing a
preliminary proxy statement/prospectus regarding the proposed transaction
between IMC Global and Cargill. Stockholders are urged to read the definitive
proxy statement/prospectus regarding the proposed transaction when it becomes
available, because it will contain important information. Stockholders will be
able to obtain a free copy of the definitive proxy statement/prospectus, as
well as other filings containing information about Cargill and IMC Global,
without charge, at the SEC's Internet site ( http://www.sec.gov/ ). Copies of
the definitive proxy statement/prospectus and the filings with the SEC that
will be incorporated by reference in the definitive proxy statement/prospectus
can also be obtained, without charge, by directing a request to IMC Global
Inc., 100 South Saunders Road, Lake Forest, Illinois 60045-2561, Attention:
David A. Prichard, or by telephone at (847) 739-1200, email: , or to Cargill,
Incorporated, 15407 McGinty Road West, MS 25, Wayzata, Minnesota 55391,
Attention: Lori Johnson, or by telephone at (952) 742-6194, email: .
The respective directors and executive officers of Cargill and IMC Global and
other persons may be deemed to be participants in the solicitation of proxies
in connection with the proposed transaction. Information regarding such
persons and a description of their direct and indirect interests, by security
holdings or otherwise, is contained in the preliminary proxy
statement/prospectus contained in the above-referenced Registration Statement
on Form S-4 of Global Nutrition Solutions, Inc. filed with the SEC on April 8,
2004.
Not a Proxy Solicitation for PLP Merger Proposal
This communication is not a solicitation of a proxy from any security holder of
IMC Global or PLP. IMC Global has filed a Registration Statement on Form S-4
with the SEC containing a preliminary proxy statement/prospectus regarding the
proposed transaction between IMC Global and PLP. PLP unitholders are urged to
read the definitive proxy statement/prospectus relating to the proposed
transaction between IMC Global and PLP when it becomes available, because it
will contain important information. PLP unitholders will be able to obtain a
free copy of the definitive proxy statement/prospectus, as well as other
filings containing information about IMC Global and PLP, at the SEC's Internet
site ( http://www.sec.gov/ ). Copies of the definitive proxy
statement/prospectus and the filings with the SEC that will be incorporated by
reference in the definitive proxy statement/prospectus can also be obtained,
without charge, by directing a request to IMC Global Inc., 100 South Saunders
Road, Lake Forest, Illinois 60045-2561, Attention: David A. Prichard, or by
telephone at (847) 739-1200, e-mail: . You may also obtain documents filed
with the SEC by PLP free of charge by requesting them in writing from Phosphate
Resource Partners Limited Partnership, 100 South Saunders Road, Suite 300, Lake
Forest, Illinois 60045-2561, or by telephone, (847) 739-1200.
IMC Global, and its respective directors, executive officers and certain
members of management and employees may be deemed to be participants in the
solicitation of proxies in connection with any possible merger transaction.
Information regarding such persons and a description of their direct and
indirect interests, by security holdings or otherwise, is contained in the
preliminary proxy statement/prospectus contained in the above-referenced
Registration Statement on Form S-4 of IMC Global filed with the SEC on April
20, 2004.
DATASOURCE: IMC Global Inc.
CONTACT: Investor and Media Contact, David A. Prichard, +1-847-739-1810,
Web site: http://www.imcglobal.com/