Despite Potash Corp. of Saskatchewan’s (TSX: POT; NYSE: POT) third quarter profit declining 11%, it expects to finish the year on an upbeat note.
Earnings were US$317 million, or US38¢ a share, compared to last year’s US$356 million, or US41¢ a share. This was below the analysts’ average estimate of US42¢ a share. The miss was largely due to higher taxes and weaker contributions from the company’s offshore investments in Jordan, Israel and Chile.
Total gross margin was US$589 million, up 22% from the US$484 million generated in the third quarter last year.
The firm’s potash segment contributed 50% or US$295 million of the total gross margin, while nitrogen, which saw higher sales volumes and strong price realizations, kicked in 40% or US$233 million. Phosphate, experiencing lower production and higher costs, added 10% or US$61 million.
Read the complete article at NorthernMiner.com/news/potashcorp