Potash Corp. 4Q Profit More Than Doubles

Potash Corp. of Saskatchewan 4th-Quarter Profit Beats Analysts' Estimates on High Demand

NEW YORK (AP) -- Canadian fertilizer maker Potash Corp. of Saskatchewan Inc. said Thursday its 2007 fourth-quarter profit more than doubled, beating Wall Street's expectations, as strong global demand for fertilizers led to significant price increases.

The company reported income of $376.8 million, or $1.16 per share, compared with $186 million, or 58 cents per share, in the year-ago period.

Revenue rose 40 percent to $1.43 billion from $1.02 billion in the fourth quarter of 2006.
Analysts polled by Thomson Financial, on average, estimated earnings of 98 cents per share on sales of $1.24 billion.

Agricultural commodity prices continued to rise during the quarter, providing farmers with the ability to increase fertilizer use to achieve higher yields, the company said.

The growth in demand led to price increases, especially for potash. The phosphate market also saw significant price increases, Saskatoon, Saskatchewan-based Potash Corp. said, in response to tight inventories, strong demand and rising input costs. Global demand for nitrogen also grew, and U.S. prices remained high.

Results were also boosted by a favorable tax rate that reduced the company's income-tax expense by 14 cents per share in the quarter. Offshore investments in Arab Potash Co., Sociedad Quimica y Minera de Chile SA and Israel Chemicals Ltd. added $28.6 million in other income to the company's fourth-quarter results.

For the full year, Potash Corp. reported income of $1.1 billion, or $3.40 per share, compared with $631.8 million, or $1.98 per share, in 2006. Total sales jumped 39 percent in 2007 to $5.23 billion from $3.77 billion in the prior year.