SASKATOON (dpa-AFX) - Potash Corp Of Saskatchewan Inc. (POT, POT.TO) on Thursday reported fourth-quarter results that missed analysts' estimates, hurt by seasonal slowdown in global fertilizer demand and macroeconomic uncertainties. The fertilizer giant also provided weak first-quarter guidance, sending its shares down by 4.2 percent in pre-market trading on the NYSE. Net income for the quarter increased 34 percent to $683 million or $0.78 per share from $508 million or $0.56 per share, but fell much short of analysts' estimates. On average, 27 analysts polled by Thomson Reuters expected the company to earn $0.88 per share for the quarter. Analysts' estimates typically exclude special items. Sales edged up to $1.865 billion from last year's $1.813 billion, but missed Wall Street estimate of $2.08 billion, amid a seasonal slowdown in global fertilizer demand as well as near-term macroeconomic uncertainty. Potash sales dropped nearly 14 percent to $718 million, amid significantly lower sales volumes although realized prices rose year-over-year. Phosphate sales advanced 16 percent to $606 million. Despite softening of spot markets during the quarter, average realized phosphate prices rose significantly from last year. Nitrogen sales climbed over 17 percent to $541 million, as industrial and agricultural demand as well as tight product supplies led to higher prices across all nitrogen products. Shipments of all three nutrients slowed during the quarter, as buyers grew cautious and paused to assess market conditions before positioning product ahead of the upcoming planting season in key growing regions, the company said. This also led to price declines. Full-year net income increased to $3.081 billion or $3.51 per share from $1.775 billion or $1.95 per share in the prior year. Sales climbed to $8.715 billion from $6.539 billion. Wall Street expected earnings of $3.62 per share on revenues of $8.50 billion. PotashCorp President and Chief Executive Officer Bill Doyle said, 'The drag of global economic concerns shook the confidence of fertilizer buyers and caused a greater decline in fourth-quarter demand than we had anticipated. However, we believe these short-term challenges do not change the more powerful drivers of our business. The return on fertilizer investment continues to be attractive to farmers world-wide and is expected to result in greater demand in the quarters ahead.' Looking ahead, PotashCorp forecasts first-quarter net income per share to be in the range of $0.55-$0.75, while analysts estimate $0.84 per share. Earnings for the full-year 2012 are projected to be between $3.40 and $4.00 per share. Wall Street expects $3.96 per share for 2012. Shipments for the year are estimated to be 8-8.5 million tonnes, similar to levels achieved in 2011. POT closed on the NYSE on Wednesday at $45.23, up from the prior close of $44.43, on 9.02 million shares. The stock is down 4.2 percent in pre-market trading. In Toronto, the shares settled at C$45.48, compared to the prior close of C$44.87, on 3.86 million shares.
Copyright RTT News/dpa-AFX