CORRECTED-UPDATE 1-Potash Corp cuts profit view, to sell less potash due to weak prices

(Corrects analyst estimate in paragraph 13 to 37 cents per
share from $37)
Oct 29 (Reuters) - Potash Corp of Saskatchewan POT.TO
POT.N on Thursday cut its full-year earnings forecast and said
it expects to sell less potash in the year than expected due to
weak demand and prices.
The world's biggest fertilizer company by market
capitalization reported an 11 percent drop in quarterly profit,
also hurt by weak nitrogen prices and increased phosphate costs.
The company lowered its full-year profit forecast to
$1.55-$1.65 per share from $1.75-$1.95. Analysts on average had
estimated $1.74 per share, according to Thomson Reuters I/B/E/S.
Potash prices have sunk some 20 percent year-over-year in
the U.S. Cornbelt, according to Mosaic Co MOS.N data, as
demand weakened due to excessive production and soft crop
prices.
Demand has also been stifled in key export markets by a new
Chinese tax that makes potash more expensive in the country, as
well as by the strong U.S. dollar and dry crop conditions in
India.
Potash Corp, the second-biggest potash producer by output
after Russia's Uralkali OAO URKA.MM , said it expects to sell
9.0-9.2 million tonnes of potash in the current year.
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The company, which also makes phosphate and nitrogen
fertilizers, had earlier forecast sales of 9.3-9.6 million
tonnes.
Potash Corp's average realized potash price fell 11 percent
to $250 per tonne in the third quarter ended Sept. 30, while
nitrogen prices fell 10.4 percent to $319 per tonne.
Cost of phosphate sold rose 9 percent to $475 per tonne.
The company's net income fell to $282 million, or 34 cents
per share, from $317 million, or 38 cents per share.
Excluding non-cash charges, mainly in phosphate, it earned
37 cents per share.
Revenue fell 6.8 percent to $1.53 billion.
Analysts on average were expecting a profit of 37 cents per
share on revenue of $1.45 billion.
Potash Corp shares closed at C$28.15 on Wednesday on the
Toronto Stock Exchange, down nearly a third this year.