PotashCorp quarterly earnings down 71% from 2015

Potash Corporation of Saskatchewan Inc. has released a preliminary financial report that shows the fertilizer company's fourth-quarter earnings were down about 71 per cent from the year earlier, mostly due to weak prices and profit margins.

Excluding asset impairment items, which haven't been calculated and not estimated in the preliminary report, PotashCorp's net income for the fourth quarter was US$59 million down from US$201 million a year earlier.

PotashCorp says its full audited results including asset impairment charges, if any, will be filed by late February.

The Saskatoon-based company, which reports in U.S. currency, says earnings per share excluding asset writedownsfell to seven cents per share from 24 cents per share.

Its sales revenue fell by nearly $300 million to $1.06 billion from $1.35 billion in the fourth quarter of 2015.

All three of the company's main product lines potash, nitrogen and phosphate fertilizers were affected by weak prices. Potash sales volumes were up 27 per cent from the fourth quarter of 2015, and other volumes were little-changed.

Estimates compiled by Thomson Reuters shows revenue was in line with analyst expectations but the earnings per share were below the consensus estimate of nine cents per share, excluding asset impairments.