Potash Corp. (POT) reports second quarter profits down by 38%. Offshore sales volume set record highs for Potash Corp. during the second quarter, but a massive write-down on the company's 20% stake in China's Sinofert Holdings Ltd. (297.HK) reversed any gains the sales bonanza produced. Excluding the write-down, Potash Corp. would have come in right in line with earlier quarterly projections at $1.02 a share. With the write-down factored in, second quarter earnings top out at 60 cents per share.
Potash Corp. acquired its 20% share of Sinofert in 2006, but the last twelve months have seen Sinofert's stock price drop by more than half.
Officials at Potash Corp., which is the World's largest producer of potash and the third largest producer of phosphate and nitrogen remain optimistic for 2013 hoping for a fertilizer boom on the heels of this summer's drought.