Potash Corp. of Saskatchewan (POT-T) has lowered its second-quarter earnings expectations thanks mostly to a strengthening Canadian dollar.
The world’s biggest fertilizer maker expects to miss its previous guidance of US90 to US$1 by up to US50 per share. The company says that if the US-Canadian exchange rate at June 13 was maintained until month’s end, earnings would be cut by about US35 per share; about US30 would be mostly non-cash translation losses.
PCS has also announced cost-cutting plans, including the layoff of some 190 employees at its Memphis (120 layoffs) and Geismar (70 layoffs) nitrogen operations in Louisiana. The two facilities normally employ about 300 workers.
Ammonia, urea and nitrogen production at both facilities were indefinitely shut down in early June due to high natural gas costs.
The layoffs and reduced phosphate earnings are expected to take another US10-US15-per share bite out of earnings.
PCS figures the layoffs and other cost-cutting measures should save it around US$5 million a month before taxes.
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