25 October 2012 11:36 [Source: ICIS news]
LONDON (ICIS)--Potash Corporation of Saskatchewan’s (PotashCorp's) third-quarter net income fell 22% year on year to $645m (€497m) following a decline in sales, the Canadian fertilizer producer said on Thursday.
Sales for the three months ended 30 September fell 7.7% year on year to $2.14bn, it added.
“Strong demand in North America and Latin America demonstrated the powerful motivators in place for farmers today, although not all global potash markets moved as quickly to capitalise on these favourable conditions,” said PotashCorp president and CEO Bill Doyle.
“While Chinese and Indian customers have not engaged consistently, their need for improved soil fertility to increase food production has not subsided. Our diversified fertilizer business and global footprint helped support our results for the quarter and we believe position us well to drive improved results as demand grows,” he added.
PotashCorp's gross margin in the third quarter fell to $927m from the $1.13bn in the same period of 2011, primarily because of weaker phosphate margins and reduced offshore potash sales due to the delay of new supply contracts with China and India.
Looking ahead, Doyle said: “The agricultural fundamentals that drive our business – rising food demand, supportive crop prices and the scientific need to replenish nutrients – remain strong despite some disruption in deliveries to offshore potash markets.
“We believe the nature of food production necessitates that fertilizer demand will return in all major markets. When it does we will be ready to meet the needs of our customers and deliver the best possible long-term returns for stakeholders.”
($1 = €0.77)
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