Potash Narrows 2017 EPS View

(RTTNews) - Potash Corporation of Saskatchewan Inc. (POT, POT.TO) said that it narrowed its full-year 2017 earnings guidance and now estimate $0.48-$0.54 per share. Merger-related costs are now anticipated to be $0.08 per share, with $0.05 per share expected in the fourth quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $0.64 per share for fiscal year 2017. Analysts' estimates typically exclude special items. Previously, the company expected fiscal 2017 earnings per share to be $0.45-$0.65, including merger-related costs of $0.05 per share.

With greater clarity on potash markets through the balance of the year, we have narrowed our guidance range for potash sales volumes, to 9.1-9.3 million tonnes, and for gross margin, to $750-$800 million.

The company lowered combined nitrogen and phosphate gross margin range and now estimate $140-$190 million in 2017, trailing last year's combined total.

The company continues to see strong customer engagement in all key potash markets and expect robust demand to continue into 2018. We have maintained our anticipated global shipment range for 2017 at 62-65 million tonnes and, with Canpotex now fully committed for the remainder of the year, we expect this year's demand to eclipse the previous record.

In North America, demand continues to be robust as growers address nutrient needs and capitalize on strong affordability. We expect total shipments to this market to approach the upper end of our 9.3-9.8 million tonnes range.

Potash Corporation of Saskatchewan Inc. reported third-quarter earnings of $0.06 per share or $53 million - including a non-cash impairment charge in phosphate of $0.03 per share - bringing the nine-month total to $0.48 per share or $403 million. Results for the quarter were down from the $0.10 per share or $81 million earned in the third quarter of 2016.