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POTASH CORP. OF SASKATCHEWAN INC. ANNOUNCES FIRST QUARTER RESULTS

 SASKATOON, Saskatchewan, April 23 /PRNewswire/ -- Potash Corp. of Saskatchewan Inc. today reported net income for the first quarter of 1993 of $8.0 million dollars or $0.21 per share compared with 1992 first quarter net income of $11.4 million or $0.29 per share. Quarterly revenues of $94.6 million were up 7.6 percent compared with $88.0 million in last year's first quarter. Net income from increased sales volumes and higher prices were more than offset by foreign exchange translation losses and increased costs because of inventory control shutdowns.
 PCS ended the first quarter of 1993 with potash volumes and revenues both up more than 10 percent over the first quarter of 1992. Including potash sales to Florida Favorite, the company sold 998,171 tons in the first quarter, an improvement of 10.3 percent over the 905,161 tons sold in last year's first quarter. Domestic volumes were flat, while offshore volumes were up 20 percent reflecting a large shipment by Canpotex to China. China contracted for 400,000 tons to be shipped in the first quarter of this year which is approximately 80 percent of its total purchases from Canpotex in all of 1992. Potash revenues mirrored volumes. Domestic revenues were flat while offshore potash revenues were up 29 percent resulting in an increase of 10.9 percent for total potash revenues.
 Prices on a U.S. dollar basis were down in the domestic market and flat in the offshore market. On a Canadian dollar basis, prices in both markets were up in this year's first quarter compared to last year's first quarter, with offshore prices up by 7 percent.
 PCS produced 837,720 tons in the first quarter of 1993 compared with 1,073,892 tons in the first quarter of 1992. Operating costs of sales for the potash operations were $43.6 million during the first quarter compared to $34.4 million in the first quarter of last year. These increased costs are a result of increased sales volume, the increased shutdown costs and because of the proportion of tons from higher-cost operations.
 The shutdowns increased operating costs but reduced the company's inventory resulting in increased cash flow. During the quarter, the company generated $36.0 million in cash flow from operations or $0.93 per share. This compares favorably with the $.3 million in cash flow generated from operations in the first quarter of 1992.
 Other variances were in transportation and taxes. Transportation costs increased as more tons were moved to the marketplace than were transported in last year's first quarter. Taxes are up 13 percent because of an additional $1 million in Saskatchewan Capital Tax.
 The company's financial position continues to improve. At March 31, 1993, PCS had a current ratio of 3.06, a quick ratio of 1.46 and debt to equity was 1:17. Interest expense for the first quarter declined by 23 percent because of lower interest rates and reduced debt. The company has now paid off all short-term debt. Long-term obligations, in the form of capital leases, continue as expensive prepayment provisions make elimination uneconomical.
 "Looking ahead, we expect little change in the North American market this year but economic problems in several consuming countries as well as in the major producing areas of the Former Soviet Union will continue to put pressure on our offshore business," stated C.E. Childers, chairman, president and chief executive officer.
 Potash Corp. of Saskatchewan Inc. (PCS) began as a Crown corporation in 1975 and, in the following years, it acquired about 50 percent of Canada's potash output. PCS was privatized in 1989 and is now the largest publicly held producer of potash in the world. From five mines in Saskatchewan, four of which it owns and operates, PCS produced 10 percent of the total world production of potash in 1992. PCS is the major potash supplier to developing countries where more potash will be needed over the next decade to produce substantial quantities of food. With 40 percent of the world's excess capacity, the company is in an ideal position to respond.
 The company is the exclusive sales agent for one of the New Mexico potash producers and the offshore sales agent for three other New Mexico producers. Through an affiliated company, it also controls Florida Favorite Fertilizer, a full-range fertilizer retailer in Florida, Alabama and Georgia.
 POTASH CORP. OF SASKATCHEWAN INC.
 Consolidated Statements of Financial Position
 (In thousands of Canadian dollars)
 March 31, Dec. 31,
 1993 1992
 (unaudited)
 Assets
 Current Assets
 Cash and short-term deposits $17,323 $9,460
 Accounts receivable 65,955 75,030
 Inventories 72,781 75,748
 Prepaid expenses 18,772 18,760
 174,831 178,998
 Fixed Assets 1,083,868 1,091,309
 Other Assets 12,727 13,324
 $1,271,426 $1,283,631
 Liabilities
 Current Liabilities
 Short-term debt $0 $17,858
 Accounts payable and accrued charges 49,133 43,648
 Current obligations under
 capital leases 7,961 7,898
 Total 57,094 69,404
 Obligations Under Capital Leases 67,605 68,597
 Total 124,699 138,001
 Shareholders' Equity
 Share Capital 548,397 548,324
 Contributed Surplus 472,022 472,022
 Retained Earnings 126,308 125,284
 Total $1,271,426 $1,283,631
 POTASH CORP. OF SASKATCHEWAN INC.
 Consolidated Statements of Income and Retained Earnings
 (In thousands of Canadian dollars)
 Three Months Ended
 March 31,
 1993 1992
 (unaudited)
 Income
 Sales $93,335 $85,199
 Other 1,300 2,785
 Total 94,635 87,984
 Costs and Expenses
 Operating costs other than those
 shown below 51,766 44,659
 Depreciation and amortization 10,776 9,130
 Research and development 441 576
 Selling, distribution and
 administrative 14,405 12,934
 Provincial mining and other taxes 6,101 5,421
 Total 83,489 72,720
 Operating Income 11,146 15,264
 Interest Expense 2,479 3,234
 Income before Income Taxes 8,667 12,030
 Income Taxes 664 664
 Net Income 8,003 11,366
 Retained Earnings, Beginning of
 Period 125,284 94,978
 Dividends (6,979) (6,962)
 Retained Earnings, End of Period $126,308 $99,382
 Earnings Per Share $0.21 $0.29
 Dividends Per Share $0.18 $0.18
 POTASH CORP. OF SASKATCHEWAN INC.
 Consolidated Statements of Cash Flow
 (In thousands of Canadian dollars)
 Three Months Ended
 1993 1992
 (Unaudited)
 Operating Activities
 Working capital from operations
 Net income $8,003 $11,366
 Depreciation and amortization 10,776 9,130
 Loss on disposal of fixed assets 23 64
 Total 18,802 20,560
 Changes in non-cash operating
 working capital
 Accounts receivable 9,075 (12,591)
 Inventories 2,640 (19,107)
 Prepaid expenses (12) (3,481)
 Accounts payable and accrued charges 5,485 14,923
 Cash provided by operating activities 35,990 304
 Dividends (6,979) (6,962)
 Cash (deficiency) before investing
 and financing activities 29,011 (6,658)
 Investing Activities
 Additions to fixed assets
 -- Potash Operations (2,002) (1,238)
 -- Florida (641) (12,092)
 Proceeds on disposal of fixed
 assets 93 1,480
 Additions to other assets 116 (5,677)
 Cash used in investing activities (2,434) (17,527)
 Cash (deficiency) before
 financing activities 26,577 (24,185)
 Financing Activities
 Repayment of long-term obligations (929) (581)
 Repayment of short-term debt (17,858) 14,606
 Issuance of shares 73 327
 Cash (used in) provided by
 financing activities (18,714) 14,352
 Increase (decrease) in Cash 7,863 (9,833)
 Cash, Beginning of Period 9,460 5,021
 Cash, End of Period $17,323 ($4,812)
 POTASH CORP. OF SASKATCHEWAN INC.
 Qter 1 Qter 1
 March 31, 1993 March 31, 1992
 Operating Data
 Production - KCI tons 837,720 1,073,892
 Sales - Tons
 Offshore 536,251 446,082
 North America(a) 461,920 459,079
 Total Potash Sales 998,171 905,161
 Potash Revenue
 (in thousands of Canadian dollars)
 Offshore $44,691 $34,778
 North America(a) 37,990 37,610
 Other 983 3,078
 Total Potash Revenue $83,664 $75,466
 (a) Includes potash sales to
 Florida Favorite Fertilizer,
 which were then sold to unaffiliated
 customers.
 -0- 4/23/93
 /CONTACT: Betty-Ann Heggie, VP-Corporate Relations of Potash Corp. of Saskatchewan, 306-933-8521/
 (POT.)


CO: Potash Corp. of Saskatchewan Inc. ST: Saskatchewan IN: MNG SU: ERN

MS -- LA008 -- 0067 04/23/93 12:38 EDT
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/C O R R E C T I O N - Potash Corporation/
ATTENTION BUSINESS/FINANCIAL EDITORS:
Potash Corporation of Saskatchewan Inc. Issues Update on Third Quarter.

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