Potash Corp. of Saskatchewan Inc. reported a 51 percent drop in fourth-quarter net income to $201 million ($0.24 per diluted share) on sales of $1.35 billion, down from the year-ago $407 million ($0.49 per share) and $1.9 billion. The company cited weaker fertilizer prices late in the year giving rise to a more cautious outlook.
The company opted to cut its quarterly dividend 34 percent to $0.25 per share payable May 3, 2016. “We believe this level – representing a payout ratio of close to 100 percent of 2016 earnings – remains highly competitive and balances the interests of our many stakeholders, including equity and debtholders,” said PotashCorp President and CEO Jochen Tilk.
Full-year income was off 17 percent to $1.27 billion ($1.52 per share) on sales of $6.28 billion compared to the prior year $1.54 billion ($1.82 per share) and $7.11 billion, respectively.