uploads///Potash Corporations Sales Declines Yet Again in Q

PotashCorp Meets Sales Estimates in 3Q16



PotashCorp’s 3Q16 sales

PotashCorp’s (POT) business comprises the three major fertilizers—nitrogen, phosphate, and potassium (XLB). In 3Q16, the company earned about 38% [1. calculated as segment sales excluding freight, transportation and distribution costs divided by total sales excluding freight, transportation, and distribution costs] of its total sales from its Potash segment, 32% from its Nitrogen segment, and 30% from its Phosphate segment.

Fertilizer companies’ sales are a function of shipments and fertilizer prices. PotashCorp’s peers include companies such as Agrium (AGU), Israel Chemicals (ICL), and CVR Partners (UAN).

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3Q16 sales

In 3Q16, PotashCorp reported sales of $1.1 billion, a 25% fall year-over-year from the $1.5 billion reported in 3Q15. Excluding freight, transportation, and distribution costs, the company reported sales of $986 million, which beat analysts’ estimate of $978 million. All three segments contributed toward the fall in the company’s sales during the quarter.

Sales are driven by the volume of fertilizer shipped and the price per ton of the volume shipped. Later in this series, we’ll discuss each of the company’s segments’ shipment volumes and realized prices. In the next part, we’ll look at PotashCorp’s Potash segment’s shipments and prices in 3Q16.


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