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NEWS RELEASE
PotashCorp Reports Record Gross Margin for Fourth-Quarter and Year | | | | | | | 
PotashCorp Reports Record Gross Margin for Fourth-Quarter and Year
|  | | Potash volumes and
prices rose in 2004 |
Jan 27, 2005 ? Potash Corporation of Saskatchewan Inc. (PotashCorp) today reported fourth-quarter adjusted net income of $65.3(1) million, or $0.58(1) per diluted share ($100.1 million or $0.88 per share including the gains related to the sales of SQM shares and Yumbes). This is more than double the earnings of $0.25 per share in the fourth quarter of 2003. For the year, PotashCorp achieved an adjusted $2.42(1) per diluted share ($2.70 per share unadjusted), compared to an adjusted $0.73(1) per share last year ($1.21 loss per share unadjusted). The Canadian dollar ended the year at 1.20 compared to previous guidance of 1.26, which negatively impacted fourth-quarter earnings and guidance by $0.11 per share. For the year, the stronger Canadian dollar had a negative impact of $0.16 per share. Growing world potash consumption led to record sales volumes for the company and pushed the industry, excluding PotashCorp, to its production limits. This tightness in world supply led to record prices in offshore and domestic markets, which contributed to the increase in net income.
Fourth-quarter gross margin of $197.3 million reflected the second consecutive quarter of record performance and compares to $92.5 million in last year's same quarter. For the year, PotashCorp achieved gross margin of $681.4 million, another record, and just over $300 million more than the 2003 margin of $380.4 million. Cash provided from operating activities for the quarter grew to $168.5 million, compared to $142.1 million in the fourth quarter of 2003. For the year, cash provided from operating activities reached a new high of $649.6 million, a 70-percent increase over the $381.5 million generated last year.
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PotashCorp Provides Relief to Devastated Countries
PotashCorp is joining the effort to aid southern Asia following the deadly earthquake and tsunami with a donation of US$1 million.
The company carefully selected five reputable humanitarian agencies to distribute the money.
"When you look at the magnitude of the donation, we wanted to ensure we distributed it responsibly," said Tom Pasztor, Director, Corporate and Government Relations. "It's important to the company that the funds get to the people in the affected area quickly, and that the organization remain in the area on a sustained basis."
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