Lower North American sales volumes and soft potash prices resulted in a significant drop in annual earnings reported by Saskatchewan2Dbased producer Potash Corp. of Canada (TSE). Potash Corp., which produces 8% of the world’s potash, reported net income of $25.4 million or 69 cents per share for the year ended Dec. 31, compared with $83.4 million or $2.38 per share in 1989. Revenues in 1990 were also down to $288.8 million from $334.8 million in the previous year.
“The combined effect of lower prices and the loss of sales to a coproducer amounted to the major variances in net income in 1990 compared to 1989,” said Chairman C.E. Childers.
However, Childers said that although a world supply demand balance is still several years away, the company enters 1991 with much stronger signals than it did a year ago.
In the three months ended Dec. 31, Potash Corp. reported net income of $9.8 million or 26 cents per share, compared with $14 million or 39 cents a share in the fourth quarter of 1989. Fourth-quarter revenues increased to $83.5 million from $77.5 million in the year ago period.
Potash Corp. draws its product from five Saskatchewan mines and has 4.7 billion tonnes of recoverable potash reserves, enough to produce at capacity for over 100 years.
The company’s 38.7 million shares outstanding traded recently at $17.13 in a 52-week range of $13-17.25. Potash Corp. 3 months ended Dec. 31 1990 1989 Revenue $83,543 $77,483 Net earnings 9,973 14,043 `per share 0.26 0.39 12 months ended Dec. 31 Revenue $288,750 $334,807 Net earnings 25,443 83,416 `per share 0.69 2.38
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