Saskatoon-PotashCorp on June 25 announced revised earnings guidance for second quarter 2009, shifting from its initial target of $1.10-$1.50 per share to the current expectation of approximately $.70 per share. The company said the change reflects substantially lower than forecasted potash sales volumes due to deferral of purchases by customers around the world, and lower realized prices for phosphate fertilizers. PotashCorp said any necessary revisions to annual guidance will be addressed in the second quarter earnings news release. Earlier projections had been that major potash contracts with China and India would be concluded by the end of June. Those projections have now been deferred to July and August. PotashCorp announced another 400,000 mt potash curtailment just last week, and major German competitor K+S Group announced a 2 million mt production cut for the second half, as well as a price cut (GM June 22, p. 1). China significantly held up negotiations three years ago, but finally settled toward the end of July (GM July 31, 2006). PotashCorp reported record earnings for the second quarter 2006, even with a drop in potash volumes (GM July 31, 2006), though that year phosphate and nitrogen stepped up to take up the slack.
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