Eyeing drought, Potash Corp. expects surge in fertilizer demand |
Globe and Mail - Jul 26, 2012 |
Drought in the Midwestern U.S. could be the prelude to a surge in demand for fertilizer over the next few years.
Historically, years of drastic decline in corn yield are followed by a jump in fertilizer use in the United States, and it’s a trend the chief executive officer of the world’s largest fertilizer producer, Saskatoon-based Potash Corp. of Saskatchewan Inc., hopes to see again.
Following a drop in corn production related to poor weather in the early 1980s, U.S. fertilizer use rose 20 per cent, according to data from the Association of American Plant Food Control Officials and the U.S. Department of Agriculture cited in a presentation given by Bill Doyle, CEO of Potash Corp. on Thursday.
On the same day that Mr. Doyle announced the company’s profits sunk 38 per cent in the second quarter, he attempted to set the stage for strong results in 2013.
The drop in profits to $522-million (U.S.), or 60 cents per share, down from $840-million, or 96 cents per share last year, was due mainly to a $341-million non-cash impairment charge to Potash Corp.’s investment in Chinese fertilizer maker Sinofert Holdings Ltd.
Read Full Article from Globe and Mail
- Posted: 2012-07-26 16:56:04
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