* Cites higher logistics costs, price declines * Had last week warned annual profit would miss analyst views * Warns drought may lead to production outages at Werra (Adds comments on drought, quote, figures) BERLIN, Aug 14 (Reuters) - German potash miner K+S reduced the profit outlook for its Salt business on Tuesday, citing higher logistics costs and saying it would be unable to make up for price declines at the unit in the second half of the year. It also warned of possible production stoppages at its Werra plant from September should the ongoing dry weather in Europe persist. K+S has been plagued in recent years by production stoppages at its Werra site in Germany due to waste water issues that have led to a lack of available staff and machinery. K+S last week said annual profit would miss analyst expectations, sending its shares down.] It said on Tuesday that it now expects unchanged 2018 earnings before interest, taxes, depreciation and amortisation (EBITDA) for the Salt business, compared to a previous forecast for a moderate increase from last year’s 325 million. “Higher logistics costs will also be noticeable in the second half of the year and price declines from the first half of the year will not be fully compensated for the remainder of 2018,” it said in a statement. On Tuesday, K+S said overall revenues for the second quarter rose 9 percent to 812 million euros ($926 million). Earnings in the Salt business dropped to 23 million euros from 29 million euros. It had already reported quarterly EBITDA of 105.1 million last week. $1 = 0.8771 euros Reporting by Victoria Bryan Editing by Maria Sheahan
Potash miner K+S is expecting lower profits for its salt business due, in part, to higher logistics costs and possible production stoppages its Werra facility in Germany. The German company said it would be unable to make up for price reductions in the unit in H2, and warned of potential production stoppages at its Werra plant from next month, amid persistent dry weather. Shares of potash producer Rio Tinto fell more than 3 percent after a report that the company’s mining operations were being shut down due to low commodity prices.