Stronger loonie affects PCS

Posted By: Northern Miner Staff July 7, 2003

Responding to the stronger Canadian dollar, Potash Corp. of Saskatchewan (POT-T) has lowered its earnings expectations for the second quarter.

The world’s biggest producer of fertilizer says earnings will likely be up to US50 per share less than expected.

PCS has also announced cost-cutting plans, including the laying off of a total of 190 employees at its two nitrogen operations in Louisiana.

Production of ammonia, urea and nitrogen production at both facilities was discontinued in early June, owing to the high cost of natural gas.

The layoffs and reduced phosphate earnings are expected to reduce earnings per share by US10-15.

The layoffs and other cost-cutting measures are expected to save PCS around US$5 million a month before taxes.