UPDATE 2-Fertiliser-maker Yara shares soar on $500 mln cost-cutting plan
* Plans $500 million a year in cost cuts by 2020
* No details given of cuts; some analysts sceptical
* Shares up 6.2 pct
* Q2 earnings below forecasts (Writes through, adds CEO, share, analysts)
By Gwladys Fouche and Ole Petter Skonnord
OSLO, July 21 (Reuters) - Shares in fertiliser maker Yara International soared on Thursday despite posting below-forecast second-quarter earnings as it announced plans to cut costs by $500 million a year by 2020.
The company gave no details of where the savings would come from. Some analysts said the savings goal, representing about 5 percent of Yara's cost base, was feasible and could come from areas such as staff cuts and shaving the cost of supplies, but others were sceptical it could achieve cuts on this scale when the vast majority of its costs were on energy.
Yara, the world's largest producer of ammonia, nitrate and complex fertilizer, had previously said it was looking to cut costs, but it was the first time the company had given a figure, which was more than its core earnings for the quarter.
Over the past year, the firm's stock has fallen 29 percent, lagging the global agricultural chemicals index , which is down 23 percent. Continuación...