Back to top

Analyst Blog

Canpotex Limited, the offshore marketing company jointly owned by Potash Corporation of Saskatchewan Inc. (POT - Analyst Report), Agrium Inc. (AGU - Analyst Report) and The Mosaic Company (MOS - Analyst Report), announced that it has signed a deal with Sinochem Fertilizer Macao Commercial Offshore Limited, a subsidiary of China’s Sinofert Holdings Limited (Sinofert), to supply one million tons of potash in the first half of 2013.

The deal was made under a three-year Memorandum of Understanding with Sinofert, signed in October 2010. The price under the new agreement reflects a $70 per ton reduction compared to the same under the previous agreement established in March last year.

Sinofert Holdings Limited is the largest supplier and distributor of fertilizers in China, covering the whole industry chain of resources, R&D, production, distribution, and agrochemical services. Canpotex is the world’s largest exporter of potash as well as an international marketing and distribution company. Potash is a major raw material for fertilisers that are used to stimulate plant growth, especially food crops.

Potash Corporation, also known as Potash Corp., is a Canadian corporation based in Saskatchewan. The company is the world's largest producer of potash and the third largest producer of nitrogen and phosphate – three primary crop nutrients used to produce fertilizers.

In October 2012, Potash Corp. released its third-quarter 2012 results. The company’s earnings came in at 74 cents per share, surpassing the Zacks Consensus Estimate by a penny, but falling well short of the year-ago earnings of 94 cents.

Sales in the quarter came in at $2,143 million, down 7.7% from $2,321 million a year ago, but beat the Zacks Consensus Estimate of $2,026 million. The year-over-year decline was due to reduced offshore potash sales arising from the delay of new supply contracts with China and India.

Potash Corp. retains a Zacks #4 Rank, reflecting a short-term (1 to 3 months) Sell rating. Currently, we have a long-term (more than 6 months) Neutral recommendation on the stock.
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
CENTURY ALU… CENX 22.53 +4.50%
ERBA DIAGNO… ERB 2.91 +4.30%
PLANAR SYST… PLNR 4.31 +3.86%
MALLINCKROD… MNK 72.17 +3.83%
GTT COMMUNI… GTT 12.06 +3.52%