TORONTO (miningweekly.com) – Fertiliser product producer Potash Corporation of Saskatchewan earned $243,6-million in the fourth quarter of 2009, 69% lower than net profit of $788-million reported a year earlier, as the global economic downturn continued to weigh on sales volumes and prices.

For the full year, the company posted net income of $987,8-million, compared with $3,5-billion in 2008.

Potash Corp said that potash sales volumes fell to their lowest since the group became a public traded company in 1989.

Fourth-quarter sales of 1,1-million tons of the crop nutrient were 23% lower on a quarter-on-quarter basis, but reflected an improvement over the 65% decline experienced for the full year, to 3-million tons.

"The fertiliser industry, like many other businesses, felt the impact of the global economic downturn in 2009," said CEO Bill Doyle.

"While our earnings were well below our company's potential, we remain committed - as we have been for decades - to strategies that protect the long-term value of our assets.”

The company has forecast a potash gross margin in 2010 of between $1,4-billion and $1,8-billion and total shipments of 7-million to 8-million tons.

The group's potash capacity this year is estimated at some 11,5-million tons, which means that continued production curtailments are expected.

Potash Corp is forecasting 2010 net income per share in the range of $4 to $5, including $0,70-$1,00 in the first quarter.

Globally, the group said it expects to see potash shipments of around 50-million tons in 2010, marking the transition between the historically low levels of 2009 and a return to higher demand in 2011.

However, while this would be a significant improvement from 2009 levels, it "will not address the multi-year process of refilling distributor inventories and soil nutrient levels", Potash Corp said.

"We believe the need for more food - and the nutrients to produce it - is irrefutable," Doyle added.

"Even though fertiliser demand can be deferred on a short-term basis, as we saw in 2009, the long-term requirement cannot be denied.

"We enter 2010 with a sense of optimism, as we look ahead to helping fertiliser dealers and farmers begin replenishing nutrients in the soil and supply chain."

Shares in the company slid 5,6% on Thursday morning, to C$110,03 apiece by 11:59 in Toronto.

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