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POTASH CORPORATION OF SASKATCHEWAN INC. 1992 SECOND QUARTER NET INCOME UP 18 PERCENT

 POTASH CORPORATION OF SASKATCHEWAN INC.
 1992 SECOND QUARTER NET INCOME UP 18 PERCENT
 SASKATOON, Saskatchewan, July 23 /PRNewswire/ -- Potash Corp. (NYSE: POT, Toronto, Montreal:POT) of Saskatchewan Inc. (PCS) today announced 1992 second quarter net income of $18.6 million or $0.49 per share on revenues of $120.7 million. This was an 18 percent improvement over the $15.7 million profit or $0.41 per share earned in the second quarter of 1991.
 The net income for the first six months of 1992 was $30.0 million or $0.78 per share on revenues of $208.7 million, compared to $28.1 million profit or $0.73 per share for the first six months of 1991. Operating income at $37.9 million compared to $33.7 million was up 13 percent during the first half of 1992. Income before taxes was $19.4 million for the second quarter of 1992 ($14.7 million in 1991) and $31.4 million for the first half of 1992 ($25.7 million in 1991).
 Including intercompany sales to Florida Favorite, PCS sold 600,424 tons in the North American market in the second quarter. This was the most tonnage moved in the April to June period for the last five years. The potash movement to the United States was strong in the months of April and May. Export sales were slow at the beginning of the period, but picked up in June after Canpotex signed a contract with China. Export sales for the quarter were 584,611 tons, slightly below the second quarter 1991 sales of 597,494 tons. Total potash sold in the second quarter of 1992 was 1,200,646 tons, (1,154,476 in 1991) and 2,105,807 tons in the first half of 1992, (2,109,944 in 1991).
 The 1992 potash revenues were $103.7 million in the second quarter ($91.9 million in 1991) and $179.2 million in the first half ($167.5 million in 1991). The higher revenues from the potash operations were a result of 17 percent higher domestic sales volumes and 9 percent higher offshore prices in the first half of 1992.
 Prices for domestic sales increased during the second quarter of 1992 compared to the first quarter levels. In contrast to 1991, when prices declined during the second quarter, prices appear to be moving upward. Although average domestic prices for the first half of 1992 were lower than the first half of 1991 in U.S. dollars, the prices in Canadian dollars were even, year to year. Export prices for the first half of 1992 averaged about $7 a ton higher than the corresponding period a year ago.
 Increased revenues were offset somewhat by higher provincial taxes ($13.2 million compared to $11.9 million for the first six months of 1991) and Large Corporation Tax of $1.4 million in the first half of 1992 compared to a tax recovery of $2.4 million in the first six months of 1991.
 PCS produced 900,412 tons of potash in the second quarter of 1992, (1,197,485 tons in 1991) and 1,974,304 tons in the first half of 1992 (2,482,031 tons in 1991). The company took additional inventory control shutdowns at its mines during this year's first half which reduced production but increased the costs for maintaining the mines during inventory shutdowns. Potash costs in the first half of 1992 were $141.0 million compared to $133.9 million during the first half of 1991. These increased first half shutdown costs will be offset by reduced shutdown costs year over year in the second half of 1992.
 "During the second quarter of 1992, our company's position continued to improve," stated C.E. Childers, chairman, president and chief executive officer. "On the sales side, we signed offshore marketing agreements with New Mexico Potash, Eddy Potash and Mississippi Chemical so we now represent about 90 percent of the offshore sales of muriate of potash from the mines in New Mexico. These arrangements strengthen our position as a world potash supplier and will be mutually beneficial to all parties concerned.
 "In operations we concluded new three year labour agreements at our four operating divisions. Two agreements expire in May 1994, one agreement expires in February 1995 while another expires in June 1995," Childers explained. "On the financial side, our company strengthened by all major measuring ratios and our share price reached an all time high in June. In fact we ended the first half of 1992 at $25.75, an improvement of $4.62 from Dec. 31, 1991."
 "Our potash inventories are under control, prices are showing stability, and our volume for the second half should be consistent with 1991 levels."
 Childers concluded by saying, "The management at Florida Favorite Fertilizer continues to work on consolidation of those facilities. Their operating income year to date was $61 thousand on revenues of $39.3 million."
 Potash Corporation of Saskatchewan Inc. is the largest publicly traded supplier of potash in the world. It is a low-cost producer and industry leader well-equipped to supply potash products to agricultural and industrial customers around the world. Drawing product from five mines in Saskatchewan, four of which are owned and operated by the company, PCS has the ability to produce 9.2 million tonnes of potash annually. 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.
 Quarter 2 Y-T-D
 June 30 June 30
 1992 1991 1992 1991
 Operating Data
 Production - KCI tons 900,412 1,197,485 1,974,304 2,482,031
 Sales - Tons
 Offshore 584,611 597,494 1,030,693 1,187,411
 (a)North America 600,424 542,776 1,059,503 908,327
 PCA 15,611 14,206 15,611 14,206
 Total Potash Sales 1,200,646 1,154,476 2,105,807 2,109,944
 Potash Revenue
 (in thousands of Canadian dollars)
 Offshore $49,684 $45,708 $84,462 $88,997
 (a)North America 50,744 44,284 88,397 75,733
 PCA 1,056 954 1,013 954
 Other 2,244 946 5,322 1,856
 Total Potash Revenue $103,728 $91,892 $179,194 $167,540


(a) Includes potash sales to Florida Favorite Fertilizer.
 POTASH CORP. OF SASKATCHEWAN INC.
 Consolidated Statements of Income and Retained Earnings
 (In thousands of Canadian dollars)
 Three Months Ended Six Months Ended
 June 30 June 30
 1992 1991 1992 1991
 (unaudited) (unaudited) (unaudited) (unaudited)
 INCOME
 Sales $118,327 $90,946 $203,526 $165,684
 Other 2,355 946 5,140 1,856
 Total 120,682 91,892 208,666 167,540
 COSTS AND EXPENSES
 Operating Costs other
 than those shown
 below 62,798 42,221 107,457 77,157
 Depreciation and
 amortization 12,266 11,198 21,396 20,930
 Research and
 development 580 634 1,156 1,079
 Selling, distribution
 and administrative 14,672 12,561 27,606 22,793
 Provincial mining and
 other taxes 7,760 6,412 13,181 11,927
 Total 98,076 73,026 170,796 133,886
 OPERATING INCOME 22,606 18,866 37,870 33,654
 INTEREST EXPENSE 3,201 4,187 6,435 7,992
 INCOME BEFORE INCOME
 TAXES 19,405 14,679 31,435 25,662
 INCOME TAXES
 (RECOVERY) 767 (1,060) 1,431 (2,402)
 NET INCOME $18,638 $15,739 $30,004 $28,064
 RETAINED EARNINGS,
 BEGINNING OF PERIOD --- --- 94,978 77,636
 DIVIDENDS --- --- (13,932) (13,920)
 RETAINED EARNINGS,
 END OF PERIOD --- --- $111,050 $91,780
 EARNINGS PER SHARE $0.49 $0.41 $0.78 $0.73
 DIVIDENDS PER SHARE $0.18 $0.18 $0.36 $0.36
 POTASH CORP. OF SASKATCHEWAN INC.
 Consolidated Statements of Financial Position
 (in thousands of Canadian dollars)
 (unaudited)
 June 30, Dec. 31,
 1992 1991
 Assets
 Current Assets
 Cash and short-term deposits $5,127 $5,021
 Accounts receivable 78,913 61,270
 Inventories 68,347 58,597
 Prepaid Expenses 15,171 19,520
 Total 167,558 144,408
 Fixed Assets 1,100,689 1,106,879
 Deferred Charges and Investment 11,353 9,491
 Tradename 2,803 0
 Total $1,282,403 $1,260,778
 Liabilities
 Current Liabilities
 Short-term debt $25,548 $28,790
 Accounts payable and accrued
 charges 45,815 34,299
 Current obligations under
 capital leases 7,415 6,947
 Total 78,778 70,036
 Obligations under Capital Leases 72,667 76,346
 Total 151,445 146,382
 Shareholders' Equity
 Share Capital 547,886 547,396
 Contributed Surplus 472,022 472,022
 Retained Earnings 111,050 94,978
 Subtotal 1,130,958 1,114,396
 Total $1,282,403 $1,260,778
 POTASH CORP. OF SASKATCHEWAN INC.
 Consolidated Statement of Cash Flow
 (in thousands of Canadian dollars)
 (unaudited)
 Six Months Ended
 June 30
 1992 1991
 Operating Activities
 Working Capital from operations
 Net income $30,004 $28,064
 Depreciation and amortization 21,396 20,930
 Loss on disposal of fixed assets 231 180
 Total 51,631 49,174
 Changes in non-cash operating working
 capital
 Accounts receivable (17,643) (4,220)
 Inventories (8,794) (12,627)
 Prepaid expenses 4,349 10,952
 Accounts payable and accrued charges 11,516 3,766
 Cash provided by operating activities 41,059 47,045
 Dividends (13,932) (13,920)
 Cash before investing activities 27,127 33,125
 Investing Activities
 Additions - Florida Favorite Fertilizer (12,462) 0
 Additions to fixed assets (4,796) (6,097)
 Proceeds on disposal of fixed assets 1,689 186
 Additions to deferred charges and
 investment (2,598) (8)
 Additions to tradename (2,891) 0
 Cash used in investing activities (21,058) (5,919)
 Cash before financing activities 6,069 27,206
 Financing Activities
 Repayment of long-term obligations (3,211) (3,071)
 Proceeds from (repayment of) short-term
 debt (3,242) 4,687
 Issuance of shares 490 13
 Cash provided by (used in) financing
 activities (5,963) 1,629

 Increase in cash 106 28,835
 Cash, Beginning of Year 5,021 3,706
 Cash, End of Year $5,127 $32,541
 Cash Consists of:
 Cash and short-term deposits $5,127 $34,894
 Bank indebtedness 0 (2,353)
 Total $5,127 $32,541
 POTASH CORP. OF SASKATCHEWAN INC.
 Notes to the Consolidated Financial Statements
 (unaudited)
 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 Corp. of Saskatchewan Sales Ltd. (PCS Sales)
 -- PCS Sales (Iowa) Inc.
 -- PCS Sales (Indiana) Inc.
 -- Potash Corp. of Saskatchewan (Florida) Inc.
 -- Potash Corp. of Saskatchewan Transport Ltd. (PCS Transport)
 -- 170979 Canada Inc.
 -- Saskterra Fertilizers Ltd. (Saskterra)
 2. Partnership with Florida Favorite Fertilizer Inc.
 Effective Jan. 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
 Total 34,480
 Liabilities 31,589
 Net assets contributed $2,891
 The joint venture has been accounted for by the purchase method, and the results of operations are included in the accompanying consolidated financial statements since Jan. 15, 1992.
 3. Earnings per Share
 Earnings per share are calculated on the weighted average shares issued and outstanding during the six months ended June 30, 1992 of 38,691,100 (1991 -- 38,669,500).
 4. Comparative Figures
 Certain of the prior period's comparative figures have been reclassified to conform with the current period's presentation.
 -0- 7/23/92
 /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 -- LA033 -- 2695 07/23/92 15:59 EDT
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Date:Jul 23, 1992
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