28 October 2010 11:51 [Source: ICIS news]
LONDON (ICIS)--PotashCorp’s third quarter net income rose 62% from the same period last year to $402.7m (€294.0m) as rapidly rising prices for crop commodities fuelled strong demand for potash, phosphate and nitrogen products, the Canadian producer said on Thursday.
Operating income came in at $539.2m, an increase of 51% from the July-September period last year. Sales soared 43% year on year to $1.58bn.
"The process of replenishing nutrients accelerated quickly and tangibly in the third quarter," said PotashCorp president and CEO Bill Doyle.
"Rapidly rising prices for a number of key crop commodities pushed our industry past the inflection point, as demonstrated by stronger demand and the beginning of pricing momentum for all nutrients, including potash later in the quarter,” he added.
The company said it expected that the 2010 phosphate and nitrogen gross margin would fall between $750m and $850m, and that net income for the full year would be in the range of $5.75-$6.00 per share.
“In this tightening environment, we anticipate that restocking of the distribution chain will begin in 2011 and, accordingly, have raised our global potash demand forecast to between 55m tonnes and 60m tonnes in the next calendar year,” said PotashCorp.
The company said its earnings guidance for 2011 would be in the range of $8.00-$8.75 per share.
($1 = €0.73)
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