PotashCorp reports best quarter in history

Potash Corp. of Saskatchewan Inc. reported its best quarter in history last week, citing record potash volumes and strong sales of phosphate and nitrogen. Fourth-quarter earnings were $186 million ($1.74 per share) on sales of $1.02 billion, versus the year-ago $117.1 million ($1.09 per share) and $930.5 million.

Annual earnings for 2006 were an all-time high at $631.8 million ($5.95 per share) on sales of $3.77 billion, up from 2005’s $542.9 million ($4.89 per share) and $3.85 billion.

PotashCorp had record fourth-quarter potash shipments, which helped make up for delays to China earlier in the year. The company said market fundamentals improved for all three major nutrients and the company continued to receive solid contributions from its offshore investments. The company also saw significantly lower gas prices.

Noting that the U.S. corn crop is expected to increase 8-10 million acres in 2007, PotashCorp predicts a return to normal application levels adjusted for the anticipated acreage. PotashCorp sees U.S. nitrogen demand growth of 10-15 percent and said potash and phosphate demand could rise between 20-25 percent. Globally, the demand picture is also bright.

PotashCorp expects first-quarter net income per share to be in the range of $1.50-$2.00 based on a $1.14 Canadian dollar. Net income for the year is expected to be in the range of $6.25-$7.25.

“The outlook for PotashCorp over the next few years is very exciting,” said PotashCorp President and CEO Bill Doyle. “The fertilizer demand growth we see today should escalate along with the long-term global need for more food, fuel and fiber. This will allow our company to draw upon the full depth of our resources and deliver even greater value for our shareholders.”