* Q2 EPS $0.62 vs $2.82 year-ago, analysts view $0.69/shr
* Q2 Rev down 67 pct
* Cuts FY EPS forecast to $4-$5
* Sees Q3 EPS $0.80-$1.20 vs. $1.44 estimate
July 23 Potash Corp of Saskatchewan Inc
(POT.TO), the world's biggest fertilizer company, posted a 78
percent drop in second-quarter profit hurt by lower sales
volumes and cuts its full year profit forecast as buyers
continued to be extremely cautious in the wake of the global
Potash posted second-quarter earnings of $187.1 million or
62 cents a share, down from $905.1 million or $2.82 per share a
Revenue for the quarter plunged 67 percent to $856 million.
Analysts on average expected the company to earn 69
Canadian cents a share, before items, on revenue of $909.8
million, according to Reuters Estimates.
"We faced the most significant deferral of demand our
industry has ever seen, yet remained steadfast in our
commitment to operate with a long-term view," CEO Bill Doyle
The company also cut its full year earnings per share
forecast to a range of $4.00 to $5.00 from its prior view of
$7.00 to $8.00 a share. It expects third-quarter earnings to
between $0.80 per share $1.20 per share.
Analysts expect the company to earn $5.13 per share for the
full year and $1.44 a share for the third quarter, according to
The price of potash -- a key crop nutrient -- has remained
stubbornly high even as demand has collapsed, as a small group
of companies, which account for roughly 75 percent of global
potash supply, have drastically cut production in a bid to
But, farmers who have been stung by the credit crunch and
lower grain prices have opted to defer potash application in
the hope that prices will decline. Potash helps enhance water
retention in plants, increases crop yields and builds a plants'
The company forecast potash gross margin for 2009 to be
between $1.2 billion to $1.5 billion and potash sales volumes
to be in the range of 4.5 million tonnes to 5.0 million tonnes.
Potash shares closed at C$97.50 Wednesday on the Toronto
(Reporting by Chakradhar Adusumilli in Bangalore, Editing by