Potash Corp stock hits record after CEO outlook

By Roberta Rampton

WINNIPEG, Manitoba, June 5 (Reuters) - Shares of Potash Corp (POT.TO: Quote, Profile, Research, Stock Buzz) hit a record high on Thursday as its chief executive gave a rosy outlook for the world's largest fertilizer company to a Merrill Lynch conference.

Record grain prices have spurred demand and prices for fertilizer, sending the Toronto-listed shares of Potash up more than 175 percent in the past year, reaching a record C$221.75 on Thursday.

Bill Doyle said the company is prepared to mine 50 percent more potash fertilizer annually in coming years, at prices that are poised to rise further still.

"Yet many investors seem more concerned about what's in the rear-view mirror and whether they missed the ride, with the result that our forward multiples ... are the lowest I can remember," Doyle said.

"We encourage our shareholders to keep their eyes on the road ahead because our earnings potential is far greater than where we've ever been before," he said.

Potash shares were up 4 percent or C$8.40 at C$220.90 in Toronto late on Thursday.

Doyle said surging world demand for food will mean farmers need to continue to produce record crops, and said he does not believe crop prices will turn lower any time soon.

Potash producers have not been able to produce as much fertilizer as customers want to buy for almost a year, and Doyle said he expected the shortage would last into 2009.