PotashCorp profit slips on rising sales
Saskatoon-based company awaits approval for merger
SASKATOON— Potash Corp. of Saskatchewan Inc. says it earned $53 million in its latest quarter, down from $81 million a year ago, as it works to close its merger with Agrium Inc.
Chief executive Jochen Tilk says the company has obtained regulatory approvals in four jurisdictions with only the U.S. and China remaining.
Tilk says the company still expects to close the deal by the end of the year.
When the deal was announced last September, it was estimated the combined company would have an enterprise value of $36 billion (U.S.) by joining PotashCorp’s extensive mining operations with Agrium’s mining and global retail network. The company says the profit amounted to six Canadian cents per diluted share for the quarter ended Sept. 30 compared with a profit of 10 cents per share a year ago.
Sales in the quarter totalled $1.23 billion, up from $1.14 billion. PotashCorp and Agrium announced a deal to merge last year. The combined company, to be named Nutrien, will have its official head office in Saskatoon while keeping a corporate office in Agrium’s home city of Calgary.
Meanwhile, Teck Resources Ltd. saw its third-quarter profit more than double compared with a year ago, boosted by its steelmaking coal business.
The mining company says it earned $600 million attributable to shareholders or $1.02 per diluted share for the quarter ended Sept. 30.
That compared with a profit of $234 million or 40 cents per diluted share in the same quarter last year.
Revenue grew to $3.13 billion, up from $2.31 billion a year ago.
Teck says its steelmaking coal business was helped by strong operational performance and substantially higher prices and increased sales volumes. It also says it benefited from higher copper, zinc and lead prices, partly offset by the strengthening loonie and copper sales volumes lagging production levels due to timing of vessel loadings.