SASKATOON – Potash Corporation of Saskatchewan Inc. (TSX:POT), one of the world’s largest fertilizer producers, says its third-quarter profit fell to US$645 million or 74 cents per share.
That’s a decline of about 22 per cent from the same time last year, when PotashCorp had $826 million or 94 cents per share of net income.
Revenue for the three months ended Sept. 30 was $2.14 billion, down from $2.32 billion in the third quarter of 2011.
The revenue was in line with analyst estimates compiled by Thomson Reuters but profit was below expectations by two to three cents per share, depending on adjustments.
Get weekly money news
The Saskatoon-based fertilizer producer says the typical “demand patterns” in various markets around the world have been disrupted and repeated its warning that shipments of potash are now expected to be below earlier forecast levels.
PotashCorp warned last week delays in reaching contracts with customers in China and India would result in the company missing its earlier 2012 targets.
PotashCorp also said it will shut its Lanigan and Rocanville mines in Saskatchewan for eight-weeks starting Nov. 18 and Dec. 7 respectively.
Its chief executive suggested Thursday that PotashCorp is prepared to dig in and wait for China and India to make a deal in light of their need for fertilizer to grow food production.
“Strong demand in North America and Latin America demonstrated the powerful motivators in place for farmers today, although not all global potash markets moved as quickly to capitalize on these favorable conditions,” PotashCorp President and CEO Bill Doyle said in a statement.
“While Chinese and Indian customers have not engaged consistently, their need for improved soil fertility to increase food production has not subsided. Our diversified fertilizer business and global footprint helped support our results for the quarter and we believe position us well to drive improved results as demand grows.”
Comments