March 13 (Reuters) - Germany's K+S, which

exports potash to U.S. farmers from Canada, on Thursday said it

would pass any tariff-related costs onto customers, after its

2025 earnings forecast disappointed investors.

K+S produces around 8 million tonnes of potash products

yearly, exporting about 300,000 tonnes to the United States

mainly from Canada. Potash is primarily used in fertilizers.

"The tariffs will be passed on one-to-one to costs, meaning

the American farmer will ultimately foot the bill," CEO Burkhard

Lohr said in a press conference.

"If this becomes a sustained issue, we have the option to

serve the U.S. market from Germany at lower costs, as there are

currently no tariffs on European potash deliveries," he added.

Shares of the potash and salt miner were down around 5% as

of 1025 GMT, cutting into their year-to-date gains that stood at

35% as of Wednesday's close.

Warburg Research analyst Oliver Schwarz said those gains

were based on more positive "buy-side" expectations that had

counted on a continued strong earnings boost from higher potash

prices, which were dampened by the broadly stable outlook.

After a period of volatility caused by Russia's invasion of

Ukraine that shrank margins at potash miners, potash prices

began to stabilise in 2024.

Since December, they have been on an upward trend, rising

around $5 every week or two, K+S said.

It forecast earnings before interest, taxes, depreciation

and amortisation (EBITDA) of 500 million to 620 million euros

($543.35 million and $673.75 million) in 2025, compared with

557.7 million last year.

At its midpoint of 560 million euros, the outlook is above

analysts' average estimate of 537.5 million in a Vara poll, but

the buy-side had expected more, Schwarz said.

K+S topped market expectations for 2024 core earnings, in

contrast to North American rivals Mosaic and Nutrien ( NTR )

whose results missed them due to lower sales.

Lohr said the company expected the positive potash price

trend to continue, helped by strong demand from markets like

China which is tapping into its strategic reserves to meet

agricultural needs.

($1 = 0.9202 euros)