Printer Friendly

POTASH CORPORATION OF SASKATCHEWAN INC. 1992 NET INCOME INCREASED 29 PERCENT

 SASKATOON, Saskatchewan, Feb. 18 /PRNewswire/ -- Potash Corporation of Saskatchewan Inc. (NYSE: POT; Toronto, Montreal: POT) today reported net income for the year ended Dec. 31, 1992, of $58.2 million or $1.50 per share on revenues of $382.8 million. This reflects a 29 percent improvement over the $45.2 million or $1.17 per share earned in 1991. Operating income increased 28 percent while income before taxes increased 46 percent. The report is based on preliminary unaudited figures.
 C.E. Childers, chairman, president and chief executive officer said, "The results were a combination of several positive factors: strong domestic sales in the first half; increased export prices throughout the year; and a weaker Canadian dollar, particularly in the fourth quarter."
 Including potash sales to Florida Favorite, the company sold 3.8 million tons in 1992, 2 percent less than its 1991 sales volumes of 3.9 million tons. An increase in domestic volumes essentially offset a decrease in offshore volumes. Domestic volumes were up 10 percent in 1992, as a result of a strong spring season, which followed a 1991 fourth quarter of low demand. Equally weak fourth quarters in 90 and 92 suggest that fall demand may be switching to spring. Offshore volumes were down 9.5 percent reflecting a decline in world demand and increased competition from the former Soviet Union in the company's traditional markets.
 Total potash revenues were up 10 percent in 1992 over 1991 figures. Domestic revenues increased by 12 percent reflecting increased volumes and a slight price increase in Canadian dollars. Higher prices both in U.S. and Canadian dollars raised offshore revenues 3 percent despite lower volumes.
 An increase in export prices more than offset a decrease in North American prices, on a U.S. dollar basis, the currency in which the company makes approximately 95 percent of its sales. PCS benefited from the weaker Canadian dollar last year as it decreased in value compared to the U.S. dollar, after 5 years of increasing strength.
 In 1992, with the consolidation of the Florida operation, total operating costs increased over the previous year while potash costs on a per unit basis increased only 1.3 percent. Operating costs of sales for the potash operations were $151.1 million compared to $150.3 million in 1991. PCS produced 3.9 million tons of potash in 1992, compared to 1991's 4.0 million tons. The Florida Favorite joint venture is also largely responsible for increases in cost items: selling, distribution and administration, and depreciation and amortization.
 Provincial taxes were $24.4 million as compared to $21.5 million in 1991, a 14 percent increase. Large Corporations Tax was $2.0 million compared to an income tax recovery of $4.1 million in 1991, as a result of the purchase of Saskterra Fertilizer in 1990. In total the company had a negative swing of $9.0 million in taxes year over year.
 Interest expense for 1992 declined by $3.3 million or 22 percent because of lower interest rates and reduced debt. During 1992, the company reduced its short-term debt and long-term debt by $10.9 million and $6.8 million respectively.
 By all major measuring ratios, the company's financial health was enhanced in 1992. Total debt to equity at Dec. 31, was 1:17 compared to 1:15 at the end of 1991. The current ratio advanced to 2:54 from 2:06, while the quick ratio improved to 1.21 from 0.95.
 "In 1992, our shareholders had an increase in market value of 21.9 percent. PCS shares out performed the Dow Jones Industrial Average, TSE 300 and other industry comparables in the United States and Canada," stated Childers. "Coupled with the dividend the total return for 1992 in PCS shares was 25.3 percent."
 "Events in the former Soviet Union affected our business in 1992 and will continue to influence it in 1993. As a result of decreased consumption in their region we are experiencing more competition from the FSU in our traditional markets. Potash imports from them increased in both the United States and China last year." Childers continued, "We are monitoring the situation closely and are dedicated to strengthening our position in the world marketplace, whether it be in reducing costs or making innovative marketing decisions."
 Potash Corporation 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 produces 8 to 10 percent of the total world production of potash. 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.
 Partnership and sales agreements signed in 1992 make the company the exclusive sales agent for Horizon Potash 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 CORPORATION OF SASKATCHEWAN INC.
 Consolidated Statements of Financial Position as at Dec. 31,
 (In thousands of Canadian dollars)
 1992 1991
 (Unaudited)
 Assets
 Current Assets
 Cash and short-term deposits $9,460 $5,021
 Accounts receivable 75,030 61,270
 Inventories 75,748 58,597
 Prepaid expenses 18,760 19,520
 Total 178,998 144,408
 Fixed Assets 1,091,309 1,106,879
 Other Assets 13,324 9,491
 Total $1,283,631 $1,260,778
 Liabilities
 Current Liabilities
 Short-term debt $17,858 $28,790
 Accounts payable and accrued charges 43,648 34,299
 Current obligations under capital
 leases 7,898 6,947
 Total 69,404 70,036
 Obligations Under Capital Leases 68,597 76,346
 Total 138,001 146,382
 Shareholders' Equity
 Share Capital 548,324 547,396
 Contributed Surplus 472,022 472,022
 Retained Earnings 125,284 94,978
 Sub-total 1,145,630 1,114,396
 Total $1,283,631 $1,260,778
 POTASH CORPORATION OF SASKATCHEWAN INC.
 Consolidated Statements of Income and Retained Earnings
 for the years ended Dec. 31
 (In thousands of Canadian dollars, except per Share amounts)
 1992 1991 1990
 (unaudited)
 Income
 Sales $369,951 $306,457 $282,293
 Other 12,885 5,383 6,457
 Total 382,836 311,840 288,750
 Costs and Expenses
 Operating costs other than
 those shown below 188,268 150,279 144,681
 Depreciation and amortization 41,176 39,097 36,934
 Research and development 2,250 1,974 2,120
 Selling, distribution and
 administration 54,853 42,831 37,882
 Provincial mining & other taxes 24,448 21,517 17,344
 Total 310,995 255,698 238,961
 Operating Income 71,841 56,142 49,789
 Interest Expense 11,693 15,024 21,785
 Income before Income Taxes 60,148 41,118 28,004
 Income Taxes (Recovery) 1,972 (4,065) 2,561
 Net Income 58,176 45,183 25,443
 Retained Earnings, Beginning
 of Year 94,978 77,636 78,713
 Dividends (27,870) (27,841) (26,520)
 Retained Earnings,
 End of Year $125,284 $94,978 $77,636
 Earnings per Share $1.50 $1.17 $0.69
 POTASH CORPORATION OF SASKATCHEWAN INC.
 Consolidated Statements of Cash Flow
 for the years ended Dec. 31,
 1992 1991 1990
 (unaudited)
 Operating Activities
 Working capital from operations
 Net income $58,176 $45,183 $25,443
 Depreciation and amortization 41,176 39,097 36,934
 Loss on disposal of fixed assets 569 33 985
 99,921 84,313 63,362
 Changes in non-cash operating
 working capital
 Accounts receivable (13,760) (4,832) 33,318
 Inventories (15,727) (1,072) 10,309
 Prepaid expenses 760 5,202 (5,803)
 Accounts payable and
 accrued charges 9,349 (8,079) (8,510)
 Cash provided by operating
 activities 80,543 75,532 92,676
 Dividends (27,870) (27,841) (26,520)
 Cash before investing and
 financing activities 52,673 47,691 66,156
 Investing Activities
 Net assets of Saskterra
 Fertilizers Ltd., acquired,
 excluding cash --- --- (54,543)
 Additions to fixed assets
 -- Potash Operation (13,848) (15,289) (13,447)
 -- Florida (12,517) --- ---
 Proceeds on disposal of
 fixed asset 556 987 628
 Additions to other assets (5,623) (255) (328)
 Cash used in investing
 activities (31,432) (14,557) (67,690)
 Cash (deficiency) before
 financing activities 21,241 33,134 (1,534)
 Financing Activities
 Repayment of long-term
 obligations (6,798) (10,704) (7,223)
 Repayment of short-term debt (10,932) (21,190) (34,336)
 Issuance of shares 928 75 47,321
 Cash (used in) provided by
 financing activities (16,802) (31,819) 5,762
 Increase in Cash 4,439 1,315 4,228
 Cash, Beginning of Period 5,021 3,706 (522)
 Cash, End of Period $9,460 $5,021 $3,706
 POTASH CORPORATION OF SASKATCHEWAN INC.
 Qter 4 Qter 4 Y-T-D Y-T-D
 Dec 31/92 Dec 31/91 Dec 31/92 Dec 31/91
 Operating Data
 Production --
 KCI tonnes 999,523 995,112 3,850,487 4,029,879
 Sales - Tons
 Offshore 418,493 582,612 2,033,357 2,246,358
 (a) North America 306,059 303,738 1,738,269 1,580,959
 PCA 15,845 9,788 55,675 81,433
 Total Potash Sales 740,397 896,138 3,827,301 3,908,750
 Potash Revenue
 (in thousands of
 Canadian dollars)
 Offshore $38,413 $43,029 $175,088 $169,580
 (a) North America 27,616 25,230 146,918 131,646
 PCA 1,282 602 4,216 5,231
 Other 2,654 0 13,544 2,190
 Total Potash Revenue $69,965 $68,861 $339,766 $308,647
 (a) Includes potash sales to Florida Favorite Fertilizer which were then sold to unaffiliated customers
 -0- 2/18/93
 /CONTACT: Betty-Ann Heggie, VP-Corporate Relations of Potash Corporation of Saskatchewan Inc., 306-933-8521/
 (POT)


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

EH -- LA035 -- 7918 02/18/93 13:04 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 18, 1993
Words:1684
Previous Article:REEFCO MANUFACTURING CORP. ANNOUNCESAPPOINTMENT OF NEW PRESIDENT AND DIRECTOR
Next Article:SPECTRASCIENCE GETS TOTAL OF $3,252,998 FROM WARRANT EXERCISE
Topics:


Related Articles
POTASH CORP. OF SASKATCHEWAN INC. REPORTS 1991 NET INCOME INCREASED 78 PERCENT
POTASH CORPORATION OF SASKATCHEWAN INC. SIGNS AGREEMENT TO BE THE EXCLUSIVE POTASH EXPORT SALES REPRESENTATIVE FOR MISSISSIPPI CHEMICAL
POTASH CORPORATION OF SASKATCHEWAN INC. 1992 SECOND QUARTER NET INCOME UP 18 PERCENT
POTASH CORPORATION OF SASKATCHEWAN INC. DECLARES QUARTERLY DIVIDEND
POTASH CORPORATION OF SASKATCHEWAN INC. REPORTS 1992 THIRD QUARTER NET INCOME UP 71 PERCENT
POTASH CORP. OF SASKATCHEWAN INC. ANNOUNCES FIRST QUARTER RESULTS
POTASH CORPORATION OF SASKATCHEWAN INC. FIRST QUARTER RESULTS UP 24 PERCENT
/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.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters