Potash Corp. of Saskatchewan Inc. (TSX:POT)
shares are down Thursday morning after the fertilizer company posted a weak quarterly financial report and announced its dividend to shareholders will go down for a second time this year.
Shares of the Saskatoon-based company (TSX:POT) opened on the Toronto Stock Exchange at $21.74, down four per cent from Wednesday’s close at $22.57.
READ MORE: Saskatchewan potash companies lack major 2016 supply deal
PotashCorp said earlier that subdued global markets caused a drop in its latest quarterly earnings and required the company to reduce its quarterly dividend by 60 per cent.
Its payout to shareholders – declared in U.S. currency – will be cut to 10 cents per quarter, from the 25 cents per share paid in May and August. The dividend is down 74 per per cent from 38 cents per share in February.
READ MORE: PotashCorp reports a sharp drop in Q1 profit
The company’s net earnings – also reported in U.S. dollars – fell to $121 million in the second quarter, or 14 cents per share.
That was down from $417 million, or 50 cents per share, in the same period a year ago and about $30 million below analyst estimates.