Potash Corp. of Saskatchewan Inc. reported a 71 percent drop in second-quarter earnings to $121 million ($0.14 per diluted share) on sales of $1.05 billion, down from the year-ago $417 million ($0.50 per share) and $1.73 billion.
The company said it intends to cut its quarterly dividend by 60 percent to $0.10 per share.
Full-year guidance has been lowered to $0.40-$0.55 per share down from the earlier guidance of $0.60-$0.80 per share. Third-quarter guidance is $0.05-$0.10 per share.
PotashCorp President and CEO Jochen Tilk said while fertilizer markets have been under pressure for six months, recovery is beginning. The company said Canpotex has reached agreements with customers in India for shipments over the next three months and deliveries are expected to begin in the weeks ahead. In India, PotashCorp anticipates that an improved monsoon and lower farm retail prices will support improved potash consumption for the rest of the year, but due to weaker first-half deliveries, it has lowered 2016 shipment estimates to a range of 3.7-4.2 million mt.
On China, he said contract negotiations continue, but that Canpotex expects to deliver tonnage to China in the second half. PotashCorp expects recently settled contracts and strong underlying consumption to support 2016 shipments in the range of 13.5-14.5 million mt, consistent with previous estimates, but below 2015’s record levels.