CORRECTED-UPDATE 2-Potash Corp keeps sights on buying K+S, trims outlook

(Corrects to remove instrument code of unrelated company)
By Shubhankar Chakravorty and Rod Nickel
July 30 (Reuters) - Potash Corp of Saskatchewan Inc POT.TO
POT.N remains focused on acquiring German salt and fertilizer
company K+S SDFGn.DE , the company said on Thursday, as it
reduced the top end of its full-year earnings forecast.
Potash, the world's biggest fertilizer company by market
capitalization, also reported a 12 percent drop in quarterly
profit, missing Wall Street's estimate, mainly due to weak
nitrogen earnings and lower phosphate sales.
The company's stock rose 2.6 percent to $27.54 in pre-market
activity in New York after hitting a 52-week low on Wednesday.
"The stock probably will see a bit of a rebound solely based
on having reached a 52-week low, and people are going to look at
the dividend yield, which has gotten pretty attractive," said
Peter Prattas, analyst at AltaCorp Capital.
Saskatoon, Saskatchewan-based Potash Corp said it intends to
talk with K+S management, despite its rejection this month of
Potash Corp's 7.9 billion euro ($8.65 billion) proposed bid of
41 euros per share as too low.
K+S has suggested Potash was planning to shrink the company.
"We remain focused on engaging with and having constructive
discussions with K+S management that would include commitments
to secure German locations and employment," Potash said in a
statement.
Potash Corp lowered the top end of its full-year profit
forecast to $1.95 per share from $2.05. The low end of the
guidance remained unchanged at $1.75.
Analysts on average were expecting earnings of $1.86 per
share, near the midpoint of Potash's revised guidance, based on
24 estimates for Thomson Reuters I/B/E/S.
For the third quarter, Potash expects to earn 35 to 45 cents
per share. Analysts were expecting 43 cents.
The company's net income fell to $417 million, or 50 cents
per share, in the second quarter, from $472 million, or 56 cents
per share, a year earlier.
The results were below the average analyst estimate of 51
cents per share.
Revenue fell 8.5 percent to $1.73 billion, below analysts'
average estimate of $1.89 billion.
Potash Corp said its average realized nitrogen price dropped
15 percent to $334 per tonne. Increased global supply and record
Chinese urea exports during the past 12 months weakened nitrogen
prices, the company said.
Potash Corp's potash production was flat at 2.5 million
tonnes, while average realized potash price rose 4 percent to
$273 per tonne.
The company narrowed its potash sales forecast for the year
to 9.3-9.6 million tonnes from 9.2-9.7 million.