PotashCorp more than doubles Q2 net income to $472m on demand

29 July 2010 11:54  [Source: ICIS news]

LONDON (ICIS)--Potash Corporation of Saskatchewan (PotashCorp) more than doubled its net income in the second quarter to $472m (€363m) from $186m in the year-earlier period on the back of increased demand, the Canadian fertilizer producer said on Thursday.

Sales rose by 68% to $1.44bn from $856m during the second quarter of 2009. Operating income came in at $669m in the second quarter, up from $284m in the April to June period last year.

PotashCorp said its performance for the quarter reflected the continuing recovery in fertilizer demand and was enhanced by a $69.6m special dividend from its investment in Israel Chemicals Ltd (ICL).

“The undeniable need for sustainable food production continued to drive fertilizer demand and our performance in the second quarter,” said PotashCorp president and chief executive Bill Doyle.

“With growing demand for food and supportive crop economics, farmers have been motivated to begin addressing nutrient deficiencies in their soils. We believe this has established a strong foundation for improved fertilization practices and for the growth of our company,” he added.

PotashCorp said it forecast 2010 net income per share to be in the range of $5.00-$5.50, including third-quarter earnings of $0.80-$1.20 per share, as phosphate and nitrogen were expected to generate combined total gross margins of $600m-$800m for the full year. Other income for 2010 was forecast to be $250m-$300m.

($1 = €0.77)

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By: Hilde Ovrebekk
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