Potash Corp. of Saskatchewan Inc., the world’s largest fertilizer producer by market value, cut its full-year earnings forecast on expectations of lower average prices for its namesake crop nutrient.
Profit is now expected to be $1.75 to $2.05 a share, the Saskatoon, Saskatchewan-based company said in a statement Thursday. That’s down from a previous view of $1.90 to $2.20.
Potash Corp. said income from its various minority stakes in foreign fertilizer producers will be lower than predicted earlier. It cited potash prices as well as the impact of a labor dispute at Israel Chemicals Ltd.
The Canadian company also posted first-quarter earnings of 44 cents a share, which missed the 50-cent average of 20 analysts’ estimates compiled by Bloomberg.
Sales fell to $1.65 billion from $1.68 billion, matching the average estimate.
“The underlying story is that U.S. farm income is falling and that’s a reflection of lower crop prices,” Jason Miner, a senior chemicals analyst at Bloomberg Intelligence in Skillman, New Jersey, said by phone before the results were released. “Farms are now more cautious about buying exactly what they need for fertilizer.”