Low sales continue to plague Potash Corp.

A substantial drop in sales to the Potash Co. of America as it resumed its own production at the Patience Lake mine was the main factor behind a 84% first-quarter earnings tumble for Potash Corp. of Saskatchewan. Potash Corp. reported a net income of $3.6 million for the first quarter of 1990 compared with $22.8 for the same period last year. Reduced sales to all of its North American markets forced Potash Corp. to slash production in half to 682,000 tonnes in an attempt to control inventory levels. The company was also hurt by much lower potash prices, which dropped by $8.17 per tonne from last year’s figure.

More encouraging was an apparent strengthening of the company’s offshore markets. Although these sales were 7.5% lower than the same period one year ago, they were 4% higher than in the fourth quarter of 1989. Potash Corp. of Saskatchewan $000s except per-share items Quarter ended Mar. 31 1990 1989 Revenue $48,200 $71,000 Net earnings 3,600 22,800

per share 0.10 0.65