18 September 2009 23:23 [Source: ICIS news]
HOUSTON (ICIS news)--Potash Corporation of Saskatchewan (PotashCorp) cut its earnings guidance for the year to reflect lower-than-forecasted potash sales volumes amid slow demand and limited restocking, the company said on Friday.
PotashCorp lowered its guidance to $3.25-3.75/share, down from the $4.00-5.00/share estimate provided in July.
“Over the past 12 months, nearly 20m tonnes of potash production [have] been curtailed by global producers,” the ?xml:namespace>
The company said it still expected its 2009 earnings to be "among the best in company history, despite an anticipated decrease of 60% in year-over-year potash volumes and an 85% decline in our combined phosphate and nitrogen gross margin”.
Measurable potash inventories across the globe “have been largely eliminated and potash levels in soils around the world have been significantly reduced”, the company said.
Potash levels in soils have fallen, creating the risk of reduced crop yields, the company said.
“A significant rebound is required to address this situation, and we expect 2010 global potash demand to be in the range of 50m-55m tonnes,” PotashCorp said.
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