PotashCorp Cuts 2016 Earnings Guidance; Q1 Profit Misses Estimates

(RTTNews) - PotashCorp (POT) announced the company has lowered full-year 2016 earnings guidance to $0.60-$0.80 per share. Analysts polled by Thomson Reuters expect the company to report profit per share of $0.90. Analysts' estimates typically exclude special items.

In response to weaker demand, PotashCorp curtailed production and have lowered expectations for 2016 potash sales volumes to a range of 8.3-8.8 million tonnes. In response to weaker cash flow projections, PotashCorp reduced full-year capital expenditures guidance, and now anticipates a range of $0.7-$0.8 billion.

For the second quarter, the company forecasts earnings in a range of $0.15-$0.25 per share. Analysts polled by Thomson Reuters expect the company to report profit per share of $0.27.

PotashCorp reported first-quarter earnings per share of $0.09, including notable charges of $0.06 per share, down from $0.44 generated in the same period of 2015. On average, 22 analysts polled by Thomson Reuters expected the company to report profit per share of $0.16 for the quarter. Analysts' estimates typically exclude special items.

Sales were $1.21 billion compared to $1.66 billion, a year ago. Analysts expected revenue of $1.16 billion, for the quarter.