Canada's PotashCorp Q4 net income down 38% to $421m as sales fall

31 January 2013 11:36  [Source: ICIS news]

LONDON (ICIS)--Potash Corporation of Saskatchewan’s (PotashCorp's) fourth-quarter net income fell 38% year on year to $421m (€312m) following a decline in sales, the Canadian fertilizer producer said on Thursday.

Sales for the three months ended 31 December fell 12% year on year to $1.64bn, while operating income fell 42% to $559m, following weaker-than-expected sales in its potash, phosphate and nitrogen business segments, it added.

"Our fourth-quarter results were adversely affected by weaker performance in all three nutrients as global fertilizer markets paused in the absence of significant immediate needs and amid lack of direction, particularly in phosphate and potash," said PotashCorp president and CEO Bill Doyle.

The group’s full-year net income for 2012 fell sharply to $2.08bn from $3.08bn earned in 2011, while sales fell 9% year on year to $7.93bn.

PotashCorp said the results included a $41m provision for the settlement of antitrust claims in the US recorded in the fourth quarter, and a $341m non-cash impairment charge related to an investment in China’s Sinofert recorded in the second quarter.

"We recognise that ebbs and flows in fertilizer demand will always be part of our business, but we believe the factors that limited demand this past year - destocking and deferred purchases - will begin to drive an even greater need for our products in 2013 and beyond," said Doyle.

"We believe our approach to managing and developing our assets has PotashCorp well positioned for improved performance as we move forward,” he added.

($1 = €0.74)

By: Franco Capaldo
+44 (0)20 8652 3214

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