(The Canadian Press) Potash Corp. of Saskatchewan Inc. (TSX: T.POT, Stock Forum) (NYSE: POT, Stock Forum) is reporting a sharp drop in second-quarter earnings and warning of lower than anticipated profits for 2012.
The company reported earnings of $522 million, or 60 cents per share, for the quarter, down from $840 million, or 96 cents per share in the same period last year.
The company says while the results reflect strong underlying performance, earnings were impacted by a $341-million impairment recorded on the company's investment in China's Sinofert Holdings Ltd., the company said in a release.
Greater potash demand, including what it called unprecedented offshore sales, resulted in gross margin of $1.2 billion for the quarter, the third-best quarterly total in company history.
Sales revenue came in at $2.4 billion for the quarter, up slightly from $2.3 billion a year ago.
Down 2% to $44.38 on Thursday, Potash Corp. Has a market cap of $38.1 billion, based on 859 million shares outstanding. The 52-week range is $59.45 and $38.31.