Potash Corp cuts full-year profit outlook again

(Reuters) - Potash Corp , the biggest global producer of its namesake crop nutrient, said its earnings for the full year will be below the low end of its previous forecast range due to delays in new contracts with buyers in China and India.

U.S-listed shares of Potash Corp, which like its rivals is facing a global supply glut, fell 4 percent to $40 in premarket trading. Rival Mosaic Co's shares fell nearly 2 percent to $53.60.

Indian fertilizer buyers are unlikely to agree to new potash contracts until December at the earliest, the head of Indian Farmers Fertiliser Co-operative (IFFCO), one of India's biggest fertilizer makers, said last week.

Potash Corp, Mosaic and Agrium Inc sell potash offshore through marketing agency Canpotex and they had been awaiting new contracts with buyers in China and India.

China and India, along with the United States and Brazil, are key consumers of potash. They buy Canadian potash through contracts renewed roughly annually.

The weakening rupee and a cut in fertilizer subsidies have made potash more expensive for Indian farmers, contributing to a stockpile of potash among North American producers.

Potash Corp temporarily shut down its biggest mine in August to reduce its stockpile.

SECOND CUT

This is the second time in three months that Potash Corp has cut its full-year outlook. The company trimmed its earnings forecast in July largely to reflect the impact of an impairment charge.

Saskatoon, Saskatchewan-based Potash Corp had forecast full-year earnings of $2.80 to $3.20 per share in July. Analysts on average were expecting a profit of $3.34 per share, according to Thomson Reuters I/B/E/S.

The company said on Wednesday it expects to earn less due to lower-than-expected sales volumes of crop nutrient potash.

Third-quarter profit is expected to be at the low end of the 70 cents to 90 cents per share range, the company said. Analysts were expecting a profit of 83 cents per share.

Shares of Potash Corp closed at C$41.10 on Tuesday on the Toronto Stock Exchange.

(Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Sriraj Kalluvila)

Source: http://news.yahoo.com/potash-corp-cuts-full-profit-outlook-101324456--finance.html

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