Potash Corp remains focused on acquiring K+S
Date:08-04-2015
Canada's Potash Corp of Saskatchewan Inc recently announced that the company remains focused on acquiring German salt and fertilizer company K+S and is prepared to make "binding commitments" to maintain jobs and keep mines running in Germany to get a deal.
Chief Executive Jochen Tilk said “If it acquires K+S, Potash Corp, the world's biggest fertilizer producer, would finish building K+S's Saskatchewan mine and operate it, selling its potash offshore through its Canpotex marketing arm”. Canpotex is a partnership with Mosaic Co MOS.N and Agrium Inc AGU.TO.
Potash Corp said it intends to talk with K+S management, despite K+S's rejection last month of Potash Corp's 7.9 billion euro ($8.65 billion) bid of 41 euros per share as too low.
Potash Corp reduced the top end of its full-year earnings forecast on 30th July,and reported a 12 percent drop in quarterly profit, mainly due to weak nitrogen earnings and lower phosphate sales. Increased global supply and record Chinese urea exports weakened nitrogen prices, the company said. Potash Corp's potash production was flat at 2.5 million tonnes, while the average realized price rose 4 percent to $273 per tonne.
The top end of the Potash Corp ’s full-year profit forecast is now $1.95 per share, down from $2.05. The low end is unchanged at $1.75.For the third quarter, Potash expects to earn 35 to 45 cents per share. Net income fell to $417 million, or 50 cents per share, in the second quarter, from $472 million, or 56 cents, a year earlier.Revenue fell 8.5 percent to $1.73 billion.The company narrowed its 2015 potash sales forecast to 9.3 million to 9.6 million tonnes from 9.2 million to 9.7 million.
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