They may not have the glamour of gold or the allure of diamonds, but potash and phosphates are producing plenty of profits for Potash Corporation of Saskatchewan.
The Saskatoon-based company reported net income of $54.7 million, or $1.01 per share, in the latest quarter ended Sept. 30, down slightly from net income of $71.4 million reported a year earlier. Net sales revenue was $521.4 million for the 1998 third quarter, while operating income was $95.6 million.
PCS produced 1.3 million tonnes of potash during the quarter, 3% less than a year ago. Third-quarter prices were up an average of 16% over a year ago. Liquid and solid phosphate prices and volumes were up, while animal feed and industrial volumes and prices were down.
PCS reports that the nitrogen market was “difficult” in the latest quarter, with prices down 11% and volumes of manufactured product 9% below 1997 levels.
PCS is the world’s largest potash company by capacity, the third-largest phosphate producer and the second-largest nitrogen producer. It operates eight potash mines, which are situated in Saskatchewan, New Brunswick and Utah. Its phosphate facilities are in Florida, North Carolina and Louisiana, while its nitrogen facilities are in the U.S. and Trinidad.
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