Potash Corporation of Saskatchewan Inc.
) announced a 50% hike in its quarterly dividend to 21 cents a
share from 14 cents paid earlier. The increased dividend will be
paid on November 5, 2012 to shareholders of record as of October
The dividend increase demonstrates Potash Corp's confidence in its
expansion programs and commitment toward increasing shareholder
returns through strategic use of capital.
Potash Corp. is the world's largest crop nutrient company. In July,
the company has released its second quarter results for the year.
The company's adjusted (excluding one-time items) earnings of $1.01
per share during the quarter missed the Zacks Consensus Estimate by
Including one-time items, earnings came in at 60 cents per share
compared with 96 cents a year ago. The company incurred a charge of
$341 million or 39 cents a share on its investment in Sinofert
Holdings Limited and $29 million or 2 cents related to its
phosphate segment, which led to a decline in its earnings.
Sales in the quarter came in at $2,396 million, up 3.1% from
$2,325 million a year ago, beating the Zacks Consensus Estimate of
$2,378 million. The growth was aided by increased potash
The company reduced its 2012 earnings forecast to $2.80-$3.20
per share from its previous expectation of $3.20-$3.60 due to the
impact of an impairment charge. Potash expects third quarter
earnings to be in the range of 70 cents to 90 cents a share.
The company expects gross profits from its potash business to be
in the range of $2.6 billion to $2.8 billion in 2012. It expects
production costs to be higher and realizations lower in the second
half of 2012.
Potash expects phosphate margins to improve in the second half
of 2012, driven by tight global supply and strong demand in the
U.S. and Latin America. The company expects combined phosphate and
nitrogen gross margin to be in the range of $1.4 billion to $1.6
billion for 2012. Potash also expects capital expenditures
(excluding capitalized interest and major repairs and maintenance)
to be $2.2 billion for the year.
Potash Corp. competes with
). Currently, the company retains a Zacks #3 Rank, reflecting a
short-term (1 to 3 months) Hold rating and we have a long-term
(more than 6 months) Neutral recommendation on its shares.
BASF SE (BASFY): Free Stock Analysis Report
MOSAIC CO/THE (MOS): Free Stock Analysis Report
POTASH SASK (POT): Free Stock Analysis Report
To read this article on Zacks.com click here.