TORONTO (miningweekly.com) – Potash Corporation of Saskatchewan earned $472-million in the second quarter, an increase of 153% compared with a year earlier, helped by firming demand for crop nutrients and potash in particular.

Profit for the quarter also included a $69,6-million dividend from the company's investment in Israel Chemicals.

After the financial crisis hit, farmers cut their use of fertilisers dramatically, in a move to lower costs, and took much longer to return to buying than producers had expected.

However, demand and sales increased significantly in the first quarter of this year, and the recovery continued into the second quarter, Potash Corp said.

“With the worst of the global recession behind us, the inevitable need for increased food production and proper fertilizer use is being re-established," said CEO Bill Doyle.

“As we have stated in the past, fertilizer applications can be deferred, but cannot be ignored.

“With growing demand for food and supportive crop economics, farmers have been motivated to begin addressing nutrient deficiencies in their soils.”

Potash Corp expects global shipments of potash in 2010 will be about 50-million tons, with demand increasing to 55-million tons in 2011.

The company has raised its 2010 net income guidance to between $5,00 and $5,50 a share, including third-quarter earnings of $0,80-$1,20 per share.

Potash Corp said in April that it was expecting net income of $4,5 to $5,25 a share this year.

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