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POTASH CORPORATION OF SASKATCHEWAN INC. ANNOUNCES FIRST QUARTER RESULTS

 POTASH CORPORATION OF SASKATCHEWAN INC.
 ANNOUNCES FIRST QUARTER RESULTS
 SASKATOON, Saskatchewan, April 27 /PRNewswire/ - Potash Corporation of Saskatchewan Inc. (PCS) today announced net income of $11.4 million or $.29 per share during the first three months of 1992 compared with $12.3 million or $.32 per share during the same period in 1991. On a pre-tax basis, the company's income increased to $12.0 million during the first quarter of 1992, up 9.5 percent over the 1991 first quarter pre-tax earnings of $11.0 million. The 1991 results included a tax recovery of $2.0 million subsequent to the company's purchase of Saskterra during 1990. Operating income was $15.3 million for the first quarter of 1992, up 3 percent from $14.8 million for the first quarter of 1991.
 Revenues for the company during the 1992 first quarter were $88.0 million compared to $75.6 million during the comparable period a year ago. The increase in revenues is a result of consolidating revenues from Florida Favorite Fertilizer (FFF), a limited partnership formed early in 1992. The consolidated numbers also reflect increased costs which were $72.7 million in the first quarter of this year, compared to $60.9 million in the first quarter of last year. When comparing PCS first quarter revenues and costs, excluding Florida Favorite, revenues were flat ($75.5 million in 1992) and costs were down slightly ($60.1 million in 1992).
 Total sales tonnes were 965,028 during the first quarter of 1992 compared to 955,468 during the first quarter of 1991. Potash sales tonnes including sales to FFF were 905,161 in the first quarter, a decrease of 50,307 tonnes from the corresponding quarter in 1991. Decreased export volumes more than offset an increase in North American volumes. Potash purchases by North American customers were up 16 percent over the 1991 first quarter reflecting the market's preparation for the anticipated increased acreage being planted to corn in the U.S. this spring. The decrease in offshore volumes was due primarily to a reduction in sales to The People's Republic of China during the first quarter of 1992.
 Offshore potash revenues were $34.8 million in the first quarter of 1992 compared with $43.3 million in the first quarter of 1991, reflecting the decreased volume but increased selling prices. Higher domestic potash volumes and lower selling prices in the U.S. market brought this year's first quarter domestic revenues to $32.8 million, up 4 percent over the $31.4 million received last year. Overall, average potash prices were flat on a CDN dollar basis, due in part to a weaker Canadian dollar.
 Mr. C.E. Childers, Chairman, President and Chief Executive Officer said, "1992 first quarter offshore prices are up over last year's first quarter reflecting the 1991 Canpotex contract increases instituted in last year's second quarter. I am pleased to report that for 1992 the Japanese, Koreans and Indians have already settled on a $4 price increase on their first half contract purchases, however, U.S. pricing has been disappointing. Hopefully, the projected spring increase will establish a more positive pricing outlook in the U.S."
 Potash production by PCS for the first quarter of 1992 was 1,073,892 tonnes compared with 1,284,546 tonnes in the same period a year ago. In the first quarter of 1992, the four mines PCS operates were down an aggregate of eight more weeks compared with the same period a year ago, thereby increasing the costs charged for maintaining the mines during inventory shutdowns. In addition, the company paid a back-to-work bonus in 1992 for employees returning to work after shutdowns which was not paid during 1991's first quarter.
 The company's financial position remained strong throughout the first quarter of 1992. Capital expenditures for potash operations for the first quarter of 1992 were $1.2 million, down $.9 million from the same period in the previous year.
 Potash Corporation of Saskatchewan Inc. is the largest publicly traded supplier of potash in the world. Engaged in the mining, production and sale of potash to markets in North America and around the world, PCS is a lean, competitive organization with a clean balance sheet and strong cash flow. It is a low cost producer and industry leader well-equipped to supply potash products to meet growing world demand in agricultural and industrial markets. The company can more than double its current production on short notice and virtually no additional capital cost.
 POTASH CORPORATION OF SASKATCHEWAN INC.
 CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
 (In thousands of Canadian dollars)
 Three Months Ended March 31: 1992 1991
 (unaudited) (unaudited)
 INCOME
 Sales $ 85,199 $ 74,738
 Other 2,785 910
 ------- -------
 87,984 75,648
 ------- -------
 COSTS AND EXPENSES
 Operating costs other than those
 shown below 44,659 34,936
 Depreciation and amortization 9,130 9,732
 Research and development 576 445
 Selling, distribution and administrative 12,934 10,232
 Provincial mining and other taxes 5,421 5,515
 ------- -------
 72,720 60,860
 ------- -------
 Operating Income 15,264 14,788
 Interest Expense 3,234 3,805
 ------- -------
 Income Before Income Taxes 12,030 10,983
 Income Taxes (Recovery) 664 (1,342)
 ------- -------
 Net Income $ 11,366 $ 12,325
 Retained Earnings, Beginning of Period 94,978 77,636
 Dividends (6,962) (6,960)
 ------- -------
 Retained Earnings, End of Period $ 99,382 $ 83,001
 -------- --------
 -------- --------
 Earnings Per Share $ 0.29 $ 0.32
 ------ ------
 Dividends Per Share $ 0.18 $ 0.18
 ------ ------
 Operating Data
 Production - KCI Tonnes 1,073,892 1,284,546
 Sales - Tonnes
 Offshore - KCI 446,082 589,917
 North America - KCI 424,312 365,551
 Florida Favorite - Fertilizer 94,634 ----
 ------- -------
 965,028 955,468
 ------- -------
 ------- -------
 POTASH CORPORATION OF SASKATCHEWAN INC.
 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
 (In thousands of Canadian dollars)
 ASSETS
 March 31, Dec. 31,
 1992 1991
 --------- ------------
 (unaudited)
 CURRENT ASSETS
 Cash and short-term deposits $ -- $ 5,021
 Accounts receivable 73,861 61,270
 Inventories 80,324 58,597
 Prepaid expenses 23,001 19,520
 -------- --------
 177,186 144,408
 FIXED ASSETS 1,107,494 1,106,879
 DEFERRED CHARGES AND INVESTMENT 11,651 9,491
 TRADENAME 2,938 --
 ---------- ----------
 $1,299,269 $1,260,778
 ---------- ----------
 ---------- ----------
 LIABILITIES
 CURRENT LIABILITIES
 Bank indebtedness $ 4,812 $ --
 Short-term debt 43,396 28,790
 Accounts payable and accrued charges 49,222 34,299
 Current obligations under capital leases 7,152 6,947
 -------- --------
 104,582 70,036
 OBLIGATIONS UNDER CAPITAL LEASES 75,560 76,346
 -------- --------
 180,142 146,382
 -------- --------
 SHAREHOLDERS' EQUITY
 SHARE CAPITAL 547,723 547,396
 CONTRIBUTED SURPLUS 472,022 472,022
 RETAINED EARNINGS 99,382 94,978
 --------- ---------
 1,119,127 1,114,396
 --------- ---------
 $1,299,269 $1,260,778
 ---------- ----------
 ---------- ----------
 POTASH CORPORATION OF SASKATCHEWAN INC.
 CONSOLIDATED STATEMENTS OF CASH FLOW
 (In thousands of Canadian dollars)
 Three Months Ended March 31: 1992 1991
 ------ ------
 (unaudited) (unaudited)
 OPERATING ACTIVITIES
 Working capital from operations
 Net Income $ 11,366 $ 12,325
 Depreciation and amortization 9,130 9,732
 Loss on disposal of fixed assets 64 157
 -------- --------
 20,560 22,214
 Changes in non-cash operating working capital
 Accounts receivable (12,591) (1,753)
 Inventories (19,107) (8,958)
 Prepaid expenses (3,481) 2,859
 Accounts payable and accrued charges 14,923 3,992
 -------- --------
 Cash provided by operating activities 304 18,354
 Dividends (6,962) (6,960)
 -------- --------
 Cash (deficiency) before investing
 activities (6,658) 11,394
 -------- --------
 -------- --------
 INVESTING ACTIVITIES
 Additions - Florida Favorite Fertilizer (12,092) (--)
 Additions to fixed assets (1,238) (2,183)
 Proceeds on disposal of fixed assets 1,480 12
 Additions to deferred charges and
 investment (2,702) 38
 Additions to tradename (2,975) --
 -------- --------
 Cash used in investing activities (17,527) (2,133)
 -------- --------
 Cash (deficiency) before financing
 activities (24,185) 9,261
 -------- --------
 FINANCING ACTIVITIES
 Repayment of long-term obligations (581) (704)
 Proceeds from (repayment of)
 short-term debt 14,606 (10,476)
 Issuance of shares 327 13
 -------- --------
 Cash provided by (used in) financing
 activities 14,352 (11,167)
 -------- --------
 DECREASE IN CASH (9,833) (1,906)
 CASH, BEGINNING OF PERIOD 5,021 3,706
 -------- --------
 CASH, END OF PERIOD $ (4,812) $ 1,800
 -------- --------
 -------- --------
 CASH CONSISTS OF:
 Short-term deposits -- 3,474
 Bank indebtedness (4,812) (1,674)
 -------- --------
 $ (4,812) $ 1,800
 -------- --------
 -------- --------
 POTASH CORPORATION OF SASKATCHEWAN INC.
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 (In thousands of Canadian dollars)
 1. Significant Accounting Policies
 The Company's accounting policies are in accordance with
 accounting principles generally accepted in Canada.
 The consolidated financial statements include the
 accounts of Potash Corporation of Saskatchewan Inc. and its
 subsidiaries:
 -- Potash Corporation of Saskatchewan Sales Limited (PCS
 Sales)
 -- PCS Sales (Iowa), Inc.
 -- PCS Sales (Indiana), Inc.
 -- Potash Corporation of Saskatchean (Florida) Inc.
 -- Potash Corporation of Saskatchewan Transport Limited
 (PCS Transport)
 -- 170979 Canada Inc.
 -- Saskterra Fertilizers Ltd. (Saskterra)
 2. Partnership with Florida Favorite Fertilizer, Inc.
 Effective January 15, 1992 the Company entered into a joint
 venture arrangement with Florida Favorite Fertilizer, Inc.
 which manufactures and markets fertilizer product in the
 southeastern United States. The Company contributed $2,891
 which was allocated as follows:
 Current assets $16,711
 Fixed assets 12,092
 Other assets 5,677
 -------
 34,480
 Liabilities 31,589
 -------
 Net assets required $ 2,891
 -------
 -------
 The acquisition was accounted for by the purchase method, and
 the results of operations are included in the accompanying
 consolidated financial statements from the effective date of
 acquisition.
 3. Earnings Per Share
 Earnings per share are calculated on the weighted average
 shares issued and outstanding during the three months ended
 March 31, 1992 of 38,687,000 (1991 - 38,669,500).
 4. Comparative Figures
 Certain of the prior periods comparative figures have been
 reclassified to conform with the current period's
 presentation.
 -0- 4/27/92
 /CONTACT: Betty-Ann Heggie of Potash Corporation of Saskatchewan, 306-933-8521/
 (POT.) CO: Potash Corporation of Saskatchewan ST: Saskatchewan IN: MNG SU: ERN


LM -- LA038 -- 3474 04/27/92 19:48 EDT
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