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Wednesday 31 October, 2007

SQM

SQM Corrects Third Quarter 2007 Earnings and Op...





SANTIAGO, Chile, October 31 /PRNewswire/ --

    Sociedad Quimica y Minera de Chile S.A. (SQM) (NYSE: SQM, SQMA; Santiago
Stock Exchange: SQM-B, SQM-A) announced that the earnings released yesterday
evening contained a transcript mistake affecting three figures for the third
quarter 2007: Operating income is US$67.2 million, Income tax is US$14.2
million and Net income is US$41.5 million. Figures for the third quarter of
2006 and year to date 2006 and 2007 were not affected.



What follows is the corrected release:

Highlights

    
    -- Third quarter 2007 earnings of US$1.58 per ADR increased 14.1%
       compared with the US$1.38 reported in the third quarter of 2006
    -- Year-to-date earnings of US$5.15 per ADR increased 21.3% compared with
       the US$4.24 reported for the first nine months of 2006
    -- Consolidated revenues have continued with the upward trend, mainly on
       the back of prices, with a 13.7% increase compared with the year-ago
       first nine-months revenues.


    SANTIAGO, Chile, Oct. 30 /PRNewswire-FirstCall/ -- Sociedad Quimica y
Minera de Chile S.A. (SQM) (NYSE: SQM, SQMA; Santiago Stock Exchange: SQM-B,
SQM-A) reported today earnings for the third quarter of 2007, which reached
US$41.5 million (US$1.58 per ADR), 14.1% higher than the US$36.4 million
(US$1.38 per ADR) recorded during the third quarter of 2006. Operating income
reached US$67.2 million (20.8% of revenues), compared to the US$57.5 million
(21.2% of revenues) of the year-ago quarter. Revenues reached US$322.5
million, approximately 19.0% higher than the US$271.1 million recorded for
the third quarter of 2006.



    SQM's Chief Executive Officer, Patricio Contesse, stated "Third quarter
profits came out in line with our expectations, benefiting from the better
pricing conditions across all our business lines. The better prices were
partially offset by a significant increase in the energy costs, with almost
no supply of natural gas from Argentina, and a high cost of diesel and fuel
oil". He continued "We believe it is very likely that availability of natural
gas in 2008 will be even lower than in 2007. For this reason, we are devoting
all of our efforts to improve energy consumption yields."



    Earnings for the first nine months of 2007 reached US$ 135.4 million (US$
5.15 per ADR), 21.3% higher than the US$ 111.6 million (US$ 4.24 per ADR)
reported for the first nine months of the previous year. Operating income for
the first nine months of 2007 was US$199.4 million (22.6% of revenues),
compared to the US$ 170.5 million (22.0% of revenues) of the first nine
months of the previous year. Revenues obtained during the first nine months
of 2007 reached US$ 881.3 million, approximately 13.6% higher than the
US$775.8 million reported for the same period of the previous year.



    Patricio Contesse indicated "In the near future, we expect the strong
market situation of potash to boost the prices of our specialty plant
nutrients going forward, so we expect a better scenario in 2008 for our
specialty plant nutrition division. Lithium prices, on the other side, are
much more difficult to predict as their evolution will depend on the timing
of the capacity expansions of the Chinese producers".



Web site: http://www.sqm.com


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