Tomahawk, WI 7/31/2013 (Basicsmedia) – Potash Corporation of Saskatchewan Inc. (USA) (NYSE:POT) is Canada’s largest producer of fertilizer and feed products. The Company has three separate segments involved in production of potash, phosphate and nitrogen. The Company is presently operating 5 potash mines in Saskatchewan and one in New Brunswick. It also owns a phosphate mine and two mineral processing facilities in North Florida and 5 phosphate plants in the US. The nitrogen operations of the Company are carried out from its facilities in Georgia, Louisiana, Ohio and Trinidad.

On Tuesday, July 30, 2013, the shares of Potash Corp. fell the most on a single day in last four years after Uralkali, the world’s largest potash producer, announced its break-up from one of the largest  alliances accounting for 43% of world’s potash exports.

The entire fertilizer industry felt the jolts of this break-up, all over the World. This cartel erosion is expected to bring down the prices of potash by 25% across the World. While it is going to be beneficial to the farmers and agricultural industry as such, fertilizer industry is seen to be losing its market value by almost 20-25%. This move of Uralkali is also expected to increase the competition in the segment. This fall in estimates and prices comes in the wake of already declining potash prices due to low import volumes and stockpiling in India and China respectively. This had led to The Potash Corp. cutting down its earnings forecast for 2013 by almost 20%. The average price of potash has already come down to $356 per tonne from $433 per tonne last year. It is further expected to fall below $300 per tonne as an outcome of Uralkali’s decision.

Earlier, on Thursday, July 25, 2013, Potash Corp had felt another jolt with its shares declining more than 5% after the Company announced its results for 2Q2013. The potash sales of the Company were down to 2.5 million metric tons, with the average price dropping by 18% to $356 per metric ton. The Company is expecting to export a record 56 million metric tons of potash shipments in 2013 keeping up with its earlier estimates of 55 million to 57 million metric tons.

This will, however, largely depend upon realization of supply contracts with Chinese buyers, expected to be formalised by the end of third fiscal quarter. The Company also produced more phosphate and nitrogen this year, as compared to same quarter last year, but the prices of both the products came down to mar the profits.

Potash Corp. is planning to buy back 5% of its common stock, worth $2 billion over next one year. The Company also forecast a profit of $0.45 to $0.60 per share for the next quarter, much below the market analysts’ expectations of $0.73 per share.

The shares of Potash Corp. plunged 16.54% on Tuesday, July 30, 2013 to close at $29.22, which is also a new 52 week low for the Company.  A huge increase in the traded volume of shares was seen at 106.28 million shares exchanging hands during the trading session, against a daily average of only 6.5 million shares.

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