Potash Profit Jumps 75% On Continued Strong Demand |
| Wall Street Journal - Jul 28, 2011 |
Potash Corp. of Saskatchewan's (POT) second-quarter profit jumped 75% as the Saskatoon, Sask.-based company continued to benefit from higher prices for all three of its main crop fertilizers.
The world's largest producer of the key crop ingredient, potash, said a continued rise in crop prices driven by a growing global population and rising living standards in the emerging world will support its business for years to come.
Based on its expectations of continued strong demand, the potash producer bumped up its earnings forecast for the year.
It said higher prices for potash, phosphate and nitrogen doubled its second-quarter gross margin to $1.2 billion from a year earlier. The company operates a fifth of the world's production capacity of potash, and is the third-largest producer of phosphate and nitrogen fertilizers.
"Pressure on global food production continued to drive robust demand for all three nutrients and supported the growing momentum behind our business," Chief Executive Bill Doyle said during a conference call.
Doyle said he believes continued uncertainty about the prospects for economic growth in the U.S. and the possibility of a debt crisis in Europe have overshadowed his company's strengths, which he said will be driven by global population growth despite any problems in developed economies.
Read Full Article from Wall Street Journal
- Posted: 2011-07-28 17:19:15
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