Potash Corp. profit drives 80% on low demand
Potash Corp. of Saskatchewan Inc. announced Thursday an 80% drop in third-quarter profit, blamed on farmers and fertilizer buyers worldwide continuing to delay their purchases due to economic uncertainty.
The company (
POT/TSX) said profit for the quarter ended Sept. 30 plummeted to US$248.8-million (82 cents a share) from US$1.24-billion (US$3.93) at the same time last year.
Gross margins for the quarter came in at US$346.2-million, down 80% from US$1.74-billion in the third quarter of 2008.
"Even though the science of food production and fundamentals of global development dictate that more fertilizer, especially potash, is needed around the world, the impact of the global financial crisis remained a difficult hurdle in the third quarter," Bill Doyle, chief executive of PotashCorp, said in a release. "The uncertainty among fertilizer buyers has lasted far longer than we anticipated."
North American potash shipment volumes were down more than 50% in the third quarter and year-to-date totals are down almost 70% compared with 2008.
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