A 1986 net loss of $3.9 million, or 64 cents a share, is reported by Potash Co. of America, compared with restated net earnings, before extraordinary charge, of $3.4 million, or 4 cents a share, in the previous year.
The company says changes in its accounting policies resulted in an increase in earnings, before extraordinary charge of $19.8 million in 1986 and $27.6 million in 1985.
Most of the increase, it says, resulted from capitalizing operating costs and net interest expenses, net of revenues, of the company’s Sussex, N.B., mining operation until it was declared to have reached commercial production as of last November.
The company’s chairman, Robert Connochie, says the decrease in net earnings was due to lower potash selling prices caused by excess world potash production, and lower demand for potash fertilizer.
Potash mining operations at the company’s Saskatoon, Sask., facilities have been halted.
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