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POTASH CORP. OF SASKATCHEWAN INC. REPORTS 1991 NET INCOME INCREASED 78 PERCENT

 POTASH CORP. OF SASKATCHEWAN INC. REPORTS
 1991 NET INCOME INCREASED 78 PERCENT
 SASKATOON, Saskatchewan, Feb. 18 /PRNewswire/ -- Potash Corp. of Saskatchewan Inc. (PCS) (NYSE: POT, Toronto, Montreal: POT) today reported net income for the year ended Dec. 31, 1991 of $45.2 million or $1.17 per share, reflecting a 78 percent improvement over the $25.4 million or $0.69 per share earned in 1990. The 1991 results, when compared with the previous year, show increased sales volumes of 5 percent, increased sales revenues of 9 percent and an operating income improvement of 13 percent. The report is based on preliminary unaudited figures.
 C.E. Childers, chairman, president and chief executive officer said, "I am pleased to report that in our second year as a publicly traded company we showed considerable improvement over 1990 and enhanced our financial health by all major measuring ratios. The debt equity ratio at the end of this year was 1-to-15, compared with 1-to-12 at the end of last year. Our current ratio advanced to 2.06-to-1 from 1.43-to-1 while the quick ratio improved to 0.95-to-1 from 0.61-to-1. In addition, we reduced our debt by $32 million."
 These results were accomplished in the face of a strengthening Canadian dollar, which continued to erode the company's margins. More than 95 percent of the company's sales revenues in 1991 were affected by the exchange rate of the Canadian dollar against the U.S. dollar. The fluctuating exchange rate in 1991 compared with 1990, had a negative effect of $5.3 million on the PCS net income.
 Operating income in 1991 was $56.1 million compared with $49.8 million in 1990, while revenues were $311.8 million and $288.8 million respectively. The company paid dividends of $27.8 million in 1991 and had cash flow from operations of $75.5 million or $1.95 per share. The company's reduced debt, coupled with lower interest rates, contributed $6.8 million to net income.
 Provincial mining and other taxes were $21.5 million for 1991, up $4.2 million from 1990 as a result of increased sales volume. This increase in mining tax was offset by a $6.8 million income tax recovery realized subsequent to the Saskterra Fertilizer Ltd. purchase in 1990.
 During 1991 PCS sold 3.909 million tons compared with 3.725 million tons in 1990. The improvement over 1990 was the result of the company's position as a global corporation. 1991 export volumes were up 8 percent, from 2.071 million in 1990 to 2.246 million in 1991. Offshore sales revenues were $169.6 million, providing an increase of 18 percent and improved offshore netbacks.
 North America was a difficult market in 1991. Sales volumes to domestic customers dropped by 4 percent with a corresponding drop in revenue. Sales volumes to domestic customers were 1.581 million tons in 1991 and 1.647 million tons in 1990 while sales revenues were $131.6 million in 1991 and $137.8 million in 1990. A slight increase in domestic prices on a U.S. dollar basis year over year, was more than offset by the strong Canadian dollar.
 Potash consumption in the North American market declined last year as a result of weather conditions and the economy. The 1991 spring season was late and the fall season was poor. This drop in North American consumption, coupled with the PCS strategy of supply management, resulted in the reduced sales.
 "Our strategy and our vision has not wavered," stated Childers. "Our business is potash. We are committed to those actions that will strengthen our industry which is our foundation. Our excess capacity and our clean balance sheet attest to our present strength and represent our potential for the future."
 Potash Corp. of Saskatchewan Inc. is a leading world supplier of potash, an integral part of the world food chain. Unlike most other North American producers, more than half the company's sales are exported offshore to areas where consumption is increasing. The growing world population and the desire for a better diet could increase potash consumption in the company's key market of Asia by as much as 5 percent per year during the next decade.
 POTASH CORP. OF SASKATCHEWAN INC.
 Selected Financial and Operating Data
 Dec. 31
 (In thousands of Canadian dollars)
 1991 1990
 (unaudited)
 Financial Data
 Current assets 144,408 141,217
 Fixed assets & deferred
 charges 1,116,370 1,142,117
 Total assets $1,260,778 $1,283,334
 Current liabilities 70,036 98,537
 Long-term debt & obligations
 under capital leases 76,346 87,818
 Shareholders' equity 1,114,396 1,096,979
 Total liabilities and
 shareholders' equity $1,260,778 1,283,334
 Cash provided by
 operating activities 75,532 92,676
 Working capital 74,372 42,680
 Operating Data
 Production-KCl Tons 4,029,879 3,463,507
 Sales-KCl Tons
 Offshore 2,246,358 2,070,705
 North America 1,580,959 1,646,558
 PCA 81,433 7,253
 Total 3,908,750 3,724,516
 POTASH CORP. OF SASKATCHEWAN INC.
 Consolidated Statements of Income and Retained Earnings
 For The Years Ended Dec. 31,
 (In thousands of Canadian dollars)
 1991 1990
 (unaudited)
 Income
 Sales $306,457 $282,293
 Other 5,383 6,457
 Total 311,840 288,750
 Costs and Expenses
 Operating costs other than
 those shown below 150,279 144,681
 Depreciation and amortization 39,097 36,934
 Research and development 1,974 2,120
 Selling, distribution and
 administrative 42,831 37,882
 Provincial mining and other
 taxes 21,517 17,344
 Total 255,698 238,961
 Operating income 56,142 49,789
 Interest expense 15,024 21,785
 Income before income taxes 41,118 28,004
 Income taxes (recovery) (4,065) 2,561
 Net income 45,183 25,443
 Retained earnings, beginning
 of year 77,636 78,713
 Dividend (27,841) (26,520)
 Retained earnings, end of year $94,978 $77,636
 Earnings per shares $1.17 $0.69
 Dividends per share $0.72 $0.72
 -0- 2/18/92
 /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


KJ -- LA027 -- 0191 02/18/92 18:14 EST
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