Potash Corp. of Saskatchewan Inc. reported a sharp drop in first quarter earnings on Thursday due to lower prices, but the results beat the company’s own guidance and it boosted its sales outlook for the year.
The fertilizer sector has been suffering from years of weak demand, and it got even worse last summer after the break-up of a cartel-like marketing alliance in Russia. That created a great deal of buyer uncertainty.
But Bill Doyle, Potash Corp.’s outgoing chief executive, said demand continues to rebound.
Bill Doyle thinks the potash market is slowly turning a corner. But his company’s own guidance has left investors skeptical.
Potash Corp. of Saskatchewan Inc. reported disappointing fourth quarter earnings on Thursday, and its outlook for 2014 was also weaker than expected. The simple culprit is low potash prices, which have been under pressure because of long-stagnant demand and uncertainty around Russian producer OAO Uralkali’s decision to break up a cartel-like marketing alliance. Phosphate and nitrogen prices are weak as well.
Potash Corp. of Saskatchewan Inc. reported a 45% year-over-year drop in third quarter profit on Thursday as plunging nutrient prices, poor sales volumes and general market uncertainty took a huge toll on the company.
Earnings of US$356-million, or US$41¢ a share, were in line with the company’s recently lowered guidance. Saskatoon-based Potash Corp. also slashed its full-year earnings forecast to between US$2.00 to US$2.20 a share, down from the prior level of US$2.45 to US$2.70.
On October 9th, Allana Potash announced that it has received the Mining Licence for the Danakhil Potash Project from the Ethiopian Ministry of Mines, after receiving approval from the Ethiopian Council of Ministers.
If you’ve been tempted to buy the recent dip in potash stocks, a new report from HSBC recommending investors avoid the sector altogether might have you reconsidering.
Potash companies have seen their stock prices plummet following the announcement last month that a Russian-Belarusian potash cartel that controlled 43% of global exports was being dismantled. That led to an immediate collapse in potash prices, and analysts rushed to lower their forecasts for future prices of the fertilizer product.
Potash Corp. of Saskatchewan Inc., the world’s largest fertilizer producer, scrapped a proposed takeover bid for Israel Chemicals Ltd. after opposition to the deal from workers and Israeli politicians.
“Now is not the time to pursue this opportunity,” Saskatoon, Saskatchewan-based Potash Corp. said Thursday in its first-quarter earnings statement.
The Walt Disney Company (DIS)
Annual Meeting of Shareholders Conference Call
March 06, 2013, 12:00 pm ET
Bob Iger - Chairman & CEO
Belinda Massafra - Representative, Broadridge Investor Communication Solutions
Cornish Hitchcock - Representative, Hermes Equity Ownership Services
Orin Smith - Director
Roy E. Disney - Co-Founder
Alan Braverman - SVP & General Counsel
By Marc Davis, BNWnews.ca In spite of a flurry of headlines in recent weeks heralding a game-changing consolidation of the world’s lucrative potash mining industry, Canada’s two small aspiring potash miners are standing firm.Both Western Potash (TSX.V: WPX) and Potash One (TSX: KCL) say they are committed to building mines that will be in business for decades. In other words, they’re not for sale.