Fertilizer maker Potash Corp tops revenue expectations

• Potash Corp of Saskatchewan reported bigger- than- expected revenue on Thursday as it sold more potash at higher prices compared with a year earlier, marking a slow recovery in the oversupplied market.

Potash prices have rebounded modestly since last year but remain low, under pressure from bloated global capacity and soft crop prices.

The Saskatoon, Saskatchewan-based fertilizer producer’s revenue rose 6.4 per cent to US$1.11 billion, beating the average estimate of US$1.09 billion.

Potash Corp.’s results were mostly in line with expectations, but the company’s second- half prospects may not be bolstered by improving potash market condi- tions, disappointing some investors, Citi analyst P. J. Juvekar said.

The company l eft unchanged its guidance for fullyear profits of US45 cents to US65 cents per share.

Potash demand this year has been robust, helped by low prices and brisk offshore sales by Canpotex Ltd, the export company owned by Potash, Agrium Inc. and Mosaic Co. Canpotex signed supply contracts this month with Chinese buyers at a higher price.

Potash Corp., the world’s third- largest potash producer, forecast global demand of 62 million to 65 million tonnes this year, up from an earlier forecast of 61 million to 64 million tonnes.