PCS boosts earnings

First-quarter income for Toronto-listed Potash Corporation of Saskatchewan (PCS) shot up by nearly one quarter over the same period last year.

The potash and phosphate producer earned $63.7 million (or $1.40 per share), compared with $51.5 million ($1.20 per share) in the first quarter of 1995. Revenue amounted to $366.9 million, compared with $136 million, and operating income climbed to $87.1 million from $52.6 million.

The huge jump in income stems partly from the North Carolina phosphate operations of Texasgulf, which PCS acquired in April 1995.

In the first quarter of 1995, large potash purchases by China and Brazil were supplemented by strong pre-season buying in the U.S. As a result, PCS sold a record 1.9 million tonnes of potash. In the first quarter of 1996, PCS sold 1.5 million tonnes; it was the second-highest first quarter sales volume in the company’s history, and well above the 5-year average.

Potash prices continue to be strong in the export market, and PCS reports that contract customers agreed, in February, to a $5-per-tonne increase.

New phosphate production records were set in the quarter at both the White Springs and Aurora operations. Sales revenue was $263 million, up 24%, and volumes were up 21% to 1.3 million tonnes.

PCS pulls product from eight potash mines and three phosphate plants, and has seven feed plants. Its reserves of both potash and phosphate are the largest in North America.