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UPDATE 1-Potash Corp's profit misses estimates, slashes dividend

Published 2016-01-28, 06:43 a/m
© Reuters. UPDATE 1-Potash Corp's profit misses estimates, slashes dividend
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Jan 28 (Reuters) - Potash Corp of Saskatchewan POT.TO
POT.N reported a lower-than-expected quarterly profit and
slashed its quarterly dividend, hurt by weakening fertilizer
prices.
Potash prices have fallen sharply over the past year, under
pressure from bloated capacity, soft grain prices and weak
currencies in major consumers such as India and Brazil.
"Weaker fertilizer prices late in the year reduced our
earnings for the quarter, giving rise to a more cautious outlook
for all three nutrients as we begin 2016," Chief Executive
Jochen Tilk said in a statement on Thursday.
The company forecast 2016 earnings of 90 cents to $1.20 per
share. Analysts on average were expecting $1.33, according to
Thomson Reuters I/B/E/S.
The world's biggest fertilizer company by capacity said
average realized price for potash fell 16 percent to $238 per
tonne in the fourth quarter, while nitrogen prices fell 29
percent to $288 per tonne.
Net earnings fell to $201 million, or 24 cents per share, in
the quarter ended Dec. 31, from $407 million, or 49 cents per
share, a year earlier
Revenue decreased nearly 29 percent to $1.35 billion.
Analysts on average expected earnings of 30 cents per share
and revenue of $1.44 billion, according to Thomson Reuters
I/B/E/S.
The company lowered its quarterly dividend by 34 percent to
25 cents per share.

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