TORONTO (miningweekly.com) – Canadian fertiliser products group Potash Corporation of Saskatchewan earned $248,8-million in the third quarter, a sharp fall from profit of $1,2-billion in the same three months a year earlier.

The weaker performance reflected ongoing reluctance by farmers around the world to buy and use fertiliser, which reduced sales volumes and prices for all Potash Corp's products.

The potash industry experienced strong demand and saw profits surge in the early parts of 2008, but its fortunes turned dramatically as farmers, squeezed by the economic crisis, deferred the use of fertiliser.

Potash Corp had said earlier this year it expected demand would rebound in the second half of 2009.

"Even though the science of food production and fundamentals of global development dictate that more fertilizer, especially potash, is needed around the world, the impact of the global financial crisis remained a difficult hurdle in the third quarter,” CEO Bill Doyle said in a statement.

“The uncertainty among fertiliser buyers has lasted far longer than we anticipated, but cannot continue indefinitely.”

The company said it expects demand will return next year, and is forecasting global potash demand in 2010 of about 50-million tons.

“However, we view the return of markets as only a timing issue and will continue to adjust our operating rate to any demand scenario that unfolds.”

Although the forecast reflects the expectation of a “sizeable” rebound in demand next year, the company expects that some of its capacity will remain curtailed.

Fourth quarter net income per share is now forecast at between $0,65 and $0,85 a share, Potash Corp said.

Last month, the firm lowered its profit forecast for 2009 to between $3,25 and $3,75 a share, compared with a July estimate of $4 to $5 a share.

The fourth quarter guidance suggest that the full year earnings will come in at the lower end of the range.

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