Potash profit plunges, but sees demand rebound


Potash Corp. (POT) +1.8% premarket after Q1 earnings and revenue beat analyst expectations and the company raises its sales outlook for the year.

Q1's realized potash price was $250/metric ton, far below $363 from the same period last year, but low prices are helping to boost purchases, as sales volume rose to 2.3M metric tons vs. 2.2M a year ago.

POT now expects to sell 8.3M-8.7M metric tons of potash this year, up slightly from earlier guidance of 8.2M-8.6M and far better than 2013 (8.1M) or 2012 (7.2M).

Issues downside Q2 guidance, seeing EPS of $0.40-$0.45 vs. analyst consensus estimate $0.49; raises bottom end of FY 2014 EPS outlook to $1.50-$1.80 vs. prior guidance of $1.40-$1.80 and $1.67 consensus.

Sees "steady improvements" taking hold in the potash industry, and maintains its FY 2014 global potash shipments outlook of 55M-57M metric tons vs. 53.5m tons shipped in 2013.

Reports weaker Q1 results from its nitrogen and phosphate units due to lower prices; phosphate production also was disrupted by bad weather.

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Comments (2)
  • maudie
    , contributor
    Comments (484) | Send Message
     
    'beat analyst expectations and the company raises its sales outlook for the year' is what is important to an adult investor, not your "plunges" title. That works in 5th grade.
    24 Apr 2014, 08:21 AM Reply Like
  • NV_GARY
    , contributor
    Comments (6097) | Send Message
     
    yah- who needs profits?
    24 Apr 2014, 12:03 PM Reply Like
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