PotashCorp's First-Quarter Earnings 50 Percent Higher Than Previous Record

SASKATOON, SK, April 24 /PRNewswire-FirstCall/ - Potash Corporation of Saskatchewan Inc. (PotashCorp) today announced record first-quarter results with earnings of $1.74 per share(1) ($566.0 million), a 181 percent increase over the $0.62 per share ($198.0 million) recorded in last year's first quarter and 50 percent higher than the previous record of $1.16 per share set in the fourth quarter of 2007. The pressure to increase global food production continued to drive demand for potash, phosphate and nitrogen and pushed prices for all three nutrients to new heights. As a result, each segment contributed record gross margin and raised total gross margin for the quarter to $856.0 million, up from $369.7 million in last year's first quarter.

Cash from operating activities prior to working capital changes during the first three months of 2008 reached a record $625.5 million(2), compared to $283.0 million in the same period last year, while adjusted earnings before interest, taxes, depreciation and amortization grew to $872.0 million(2) from $381.0 million in first-quarter 2007.

The same global conditions that drove PotashCorp's record performance this quarter also improved earnings from our offshore investments. Arab Potash Company Ltd. (APC) in Jordan and Sociedad Quimica y Minera de Chile S.A. (SQM) in Chile contributed a total of $23.4 million to other income during the quarter, up from $13.0 million in the first quarter of 2007. These investments, along with our positions in Israel Chemicals Ltd. (ICL) in Israel and Sinofert Holdings Limited (Sinofert) in China, currently have a total market value of $8.6 billion, equating to $26.50 per PotashCorp share.

"Another record quarter for our company reflects the ongoing growth in global demand for food and the fertilizers that are essential to maximizing crop production," said PotashCorp President and Chief Executive Officer Bill Doyle. "This is especially true of potash, where we have unmatched assets that continue to elevate our performance. In this environment, we are demonstrating the increasing value of our company - as an essential part of the solution to concerns about the world's food supply."