Potash Corp. of Saskatchewan says it achieved record sales volumes for a third quarter, but saw its profit fall due to weaker prices for the three major types of fertilizer that it produces.
The company, which keeps its books in U.S. dollars, said for the three months ended Sept. 30 it earned US$81 million or 10 cents per share, including $6 million in costs associated with its proposed merger with Agrium Inc.
In last year’s third quarter, PotashCorp’s net income was more than three times higher at US$282 million or 34 cents per share.
Sales revenue fell to US$1.14 billion from US$1.53 billion.
The Saskatoon-based company says demand for its main product, potash, improved late in the third quarter. However, the realized average price was $150 per tonne, down from $250 per tonne in the third quarter of 2015, continuing a decline experienced in the first half of 2016.
In addition, nitrogen markets remained at multi-year lows and phosphate markets were subdued.
(The Canadian Press)