UPDATE 2-Potash Corp cuts output, lowers 2015 forecasts as prices slump

(Adds production cut, analyst comment, trading details)
Oct 29 (Reuters) - Potash Corp of Saskatchewan POT.TO
POT.N said on Thursday it would cut production and trim its
full-year earnings and sales forecasts, as volatile currencies
and economic pressures weigh on demand for the crop nutrient
potash.
The world's biggest fertilizer company by capacity 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.
Chief Executive Officer Jochen Tilk said the company would
advance the planned closure of its Penobsquis, New Brunswick
mine and shut production in December at three Saskatchewan
mines.
Potash output in the fourth quarter will fall by nearly
500,000 tonnes, Tilk said, adding he did not expect to lay off
employees.
Potash Corp's results and revised outlook point to a
deeper-than-expected slump in the potash market, said Alta Corp
Capital analyst Peter Prattas.
"The down trend continues as we enter a vacuum for the next
couple of months as the next (supply) contract with China is
negotiated," he said. "Only then do we foresee the opportunity
for a bottoming of price declines."
Potash prices have sunk some 20 percent year-over-year in
the U.S. Corn Belt, according to Mosaic Co data, as
demand weakened amid excessive capacity and soft crop prices.
Demand has also been stifled by a new Chinese tax that makes
potash more expensive in the country, as well as by the strong
U.S. dollar and dry Indian crop conditions.
Potash Corp shares dipped 1.4 percent in premarket trading
in New York. They closed at C$28.15 on Wednesday in Toronto,
down nearly a third this year.
Saskatoon, Saskatchewan-based Potash Corp expects to sell
9.0-9.2 million tonnes of potash this year. 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, while nitrogen prices
fell 10.4 percent to $319 per tonne.
The cost of phosphate sold grew 9 percent to $475 per tonne.
The company said Thursday net income in the third quarter
fell to $282 million, or 34 cents per share, from $317 million,
or 38 cents per share.
Excluding non-cash charges, it earned 37 cents per share.
Revenue fell 6.8 percent to $1.53 billion.
Analysts were expecting a profit of 37 cents per share on
revenue of $1.45 billion.