PCS issues profit warning (April 07, 2003)

Potash Corp. of Saskatchewan (POT-T) has fallen short of its first-quarter earnings estimate of US25 per share.

The world’s biggest fertilizer maker says the main problem is the strengthening Canadian dollar.

The company estimates that every penny gain in the value of the Canadian dollar costs it US$1.2 million before taxes. In the past four months, the Canadian dollar has gained almost 10% against its U.S. counterpart, resulting in a decrease in earnings of US14 per share.

First-quarter results will also be affected by reduced nitrogen operating rates and higher-than-expected natural gas prices.

The company is nonetheless sticking to its estimate for full-year earnings of about US$2 per share.