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POTASH CORPORATION OF SASKATCHEWAN INC. REPORTS 1992 THIRD QUARTER NET INCOME UP 71 PERCENT

 POTASH CORPORATION OF SASKATCHEWAN INC. REPORTS 1992
 THIRD QUARTER NET INCOME UP 71 PERCENT
 SASKATOON, Saskatchewan, Oct. 26 /PRNewswire/ -- Potash Corporation of Saskatchewan Inc. (NYSE: POT; Toronto, Montreal: POT) (PCS) today announced 1992 third quarter net income of $16.4 million or $0.42 per share on revenues of $96.1 million. This was a 71 percent improvement over the profit of $9.6 million or $0.25 per share earned in the third quarter of 1991.
 Net income for the first nine months of 1992 was $46.4 million or $1.20 per share on revenues of $304.7 million, compared to $37.6 million or $0.98 per share for the first nine months of 1991. Operating income of $57.6 million compared to $44.6 million was up 29 percent during the first three quarters of this year. Income before taxes was $17.1 million for the third quarter of 1992 ($7.3 million in 1991) and $48.6 million on a year-to-date basis ($32.9 million in 1991).
 Including intercompany sales to Florida Favorite, PCS sold 981,097 tons of potash in this year's third quarter compared to 902,668 tons last year. Domestic sales volumes were flat at 372,707 tons (368,894 tons in 1991) while offshore sales were up 23 percent at 584,171 tons (476,335 tons in 1991). The increased export volumes reflect increased third quarter sales to the Pacific Rim on a year-over-year basis. The company sold 3,086,904 tons of potash during the first nine months of this year compared to 3,012,612 tons during the same period last year.
 The 1992 potash revenues were $90.6 million in the third quarter, up 25 percent from 1991 third quarter revenues of $72.2 million. On a year-to-date basis, potash revenues were up 13 percent at $269.8 million compared to $239.8 million in 1991. The higher revenues from the potash operations were a result of higher offshore prices for potash.
 Offshore prices increased during the third quarter of 1992 compared to second quarter levels and were up 13 percent in the third quarter on a year-over-year basis. Although average 1992 prices in the North American market are flat on a year-to-date basis compared to 1991, domestic prices fell during the third quarter when compared to the second quarter average.
 C.E. Childers, chairman, president and chief executive officer commented on prices by saying, "We are gratified to see export prices have improved this year, in spite of increased competition in our traditional world markets. However, I am concerned about the price erosion in the North American market as nervous producers concerned about market share lower prices and reduce revenues."
 PCS produced 876,660 tons in the third quarter of 1992 (552,736 tons in 1991) and 2,850,964 tons in the first three quarters (3,034,767 in 1991). Operating costs of sales for the potash operations were $38.6 million during the third quarter ($36.4 million in 1991) and $121.9 million on a year-to-date basis ($113.6 million in 1991).
 Since almost all the company's sales are made in US dollars, its revenues are affected by the exchange rate of the Canadian dollar. C.E. Childers said, "For the first time in several years, the difference in the exchange rate has had a positive effect on the company's bottom line."
 Provincial taxes were $20.7 million in the first nine months of 1992 compared to $16.7 million in 1991, and the corporate income tax was $2.2 million compared to an income tax recovery of $4.7 million in the first nine months of 1991.
 The company's financial position continues to improve. On a year-to-date basis the company has repaid $27.8 million in short-term debt bringing its outstanding short-term liability to $1.0 million. Its current ratio improved to 2.84 from 2.06 at Dec. 31, 1991 and its quick ratio improved to 1.43 from 0.95. With shareholder equity currently at $1,140,398,000 the debt to equity ratio is 1:16.
 A comparison of the 1992 income statement with 1991 reveals a large increase in both revenues and expenses which is explained by the inclusion of the Florida Favorite joint venture. Florida Favorite experienced a small loss in the third quarter, reflecting what is traditionally a weak quarter seasonally.
 C.E. Childers concluded by saying, "I note with pleasure that our share price has continued to outperform both the Dow Jones Industrial Average and the Toronto Stock Exchange Composite Index and, in September, reached a new all-time high."
 PCS is the world's largest publicly traded supplier of potash, a vital ingredient in the world food chain. The company is a lean, competitive organization with a clean balance sheet and strong cash flow. From five mines in Saskatchewan, four of which it owns and operates, it produces 8 to 10 percent of the total world production. PCS sells to a stable North American domestic market and to a growing international market through Canpotex, the offshore sales agency for all Saskatchewan potash producers. Under current allotments, PCS accounts for about 56 percent of all Canpotex sales making it the major potash supplier to the world's offshore markets. Increased potash usage will be required, over the next decade, to produce substantial quantities of food in these regions.
 In addition to its own production, PCS is the exclusive sales agent for Horizon Potash and is also responsible for all offshore sales of three other New Mexico producers. Because of its size and marketing strategy, it is recognized as the global market leader.
 POTASH CORPORATION OF SASKATCHEWAN INC.
 Qter 3 Qter 3 Y-T-D Y-T-D
 Sept. 30, Sept. 30, Sept. 30, Sept. 30,
 1992 1991 1992 1991
 Operating Data:
 Production - KCI
 tons 876,660 552,736 2,850,964 3,034,767
 Sales - tons
 Offshore 584,171 476,335 1,614,864 1,663,746
 North
 America(a) 372,707 368,894 1,432,210 1,277,221
 PCA 24,219 57,439 39,830 71,645
 Total Potash
 Sales 981,097 902,668 3,086,904 3,012,612
 Potash Revenue:
 (in thousands of Canadian dollars)
 Offshore $52,213 $37,554 $136,675 $126,551
 North America(a) 30,905 30,683 119,302 106,416
 PCA 1,921 3,675 2,934 4,629
 Other 5,568 334 10,890 2,190
 Total Potash
 Revenue $90,607 $72,246 $269,801 $239,786
 (a) Includes potash sales to Florida Favorite Fertilizer
 POTASH CORPORATION OF SASKATCHEWAN INC.
 Consolidated Statements of Income and Retained Earnings
 (in thousands of Canadian dollars)
 (Unaudited)
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1992 1991 1992 1991
 Income:
 Sales $90,743 $71,912 $294,269 $237,596
 Other 5,312 334 10,452 2,190
 Total 96,055 72,246 304,721 239,786
 Costs and
 Expenses:
 Operating costs
 other than those
 shown below 43,831 36,416 151,288 113,573
 Depreciation and
 amortization 11,385 9,283 32,781 30,213
 Research and
 Development 511 141 1,667 1,220
 Selling, distribution
 and administrative 13,099 10,656 40,705 33,449
 Provincial mining
 and other taxes 7,477 4,809 20,658 16,736
 Total 76,303 61,305 247,099 195,191
 Operating Income 19,752 10,941 57,622 44,595
 Interest Expense 2,619 3,689 9,054 11,681
 Income Before
 Income Taxes 17,133 7,252 48,568 32,914
 Income Taxes
 (Recovery) 767 (2,316) 2,198 (4,718)
 Net Income $16,366 $9,568 46,370 37,632
 Retained Earnings,
 Beginning of Period 94,978 77,636
 Dividends (20,902) (20,880)
 Retained Earnings,
 End of Period $120,446 $94,388
 Earnings Per share $0.42 $0.25 $1.20 $0.98
 Dividends per share $0.18 $0.18 $0.54 $0.54
 POTASH CORPORATION OF SASKATCHEWAN INC.
 Consolidated Statements of Financial Position
 (In thousands of Canadian dollars)
 (Unaudited)
 Sept. 30, Dec. 31,
 1992 1991
 Assets:
 Current Assets
 Cash and short-term
 deposits $5,035 $5,021
 Accounts receivable 74,410 61,270
 Inventories 59,892 58,597
 Prepaid expenses 18,572 19,520
 Total 157,909 144,408
 Fixed Assets 1,095,982 1,106,879
 Deferred Charges and
 Investment 11,008 9,491
 Tradename 2,757 ---
 Total $1,267,656 $1,260,778
 Liabilities:
 Current Liabilities
 Bank indebtedness $4,012 ---
 Short-term debt 991 28,790
 Accounts payable and
 accrued charges 43,012 34,299
 Current obligations
 under capital leases 7,520 6,947
 Total 55,535 70,036
 Obligations Under
 Capital Leases 71,723 76,346
 Total 127,258 146,382
 Shareholders' Equity:
 Share Capital 547,930 547,396
 Contributed Surplus 472,022 472,022
 Retained Earnings 120,446 94,978
 Sub total 1,140,398 1,114,396
 $1,267,656 $1,260,778
 POTASH CORPORATION OF SASKATCHEWAN INC.
 Consolidated Statements of Cash Flow
 (In thousands of Canadian dollars)
 (Unaudited)
 Nine Months Ended
 Sept. 30,
 1992 1991
 Operating Activities:
 Working capital from
 operations
 Net income $46,370 $37,632
 Depreciation and
 amortization 32,781 30,213
 Loss on disposal of
 fixed assets 276 232
 Total 79,427 68,077
 Changes in non-cash
 operating working capital:
 Accounts receivable (13,140) (2,623)
 Inventories (2,063) (1,061)
 Prepaid expenses 948 6,373
 Accounts payable and
 accrued charges 8,713 (2,498)
 Cash provided by
 operating activities 73,885 68,268
 Dividends (20,902) (20,880)
 Cash before
 investing activities 52,983 47,388
 Investing Activities:
 Additions - Florida Favorite
 Fertilizer (13,442) ---
 Additions to fixed assets (8,388) (8,973)
 Proceeds on disposal
 of fixed assets 1,779 1,014
 Additions to deferred
 charges and investment (2,724) (640)
 Additions to tradename (2,891) ---
 Cash used in investing
 activities (25,666) (8,599)
 Cash before financing
 activities 27,317 38,789
 Financing Activities:
 Repayment of long-term
 obligations (4,050) (3,854)
 Repayment of short-term debt (27,799) (43,526)
 Issuance of shares 534 29
 Cash used in financing
 activities (31,315) (47,351)
 Decrease in Cash (3,998) (8,562)
 Cash, Beginning of Period 5,021 3,706
 Cash, End of Period $1,023 ($4,856)
 Cash Consists of:
 Cash and short-term deposits $5,035 $3,683
 Bank indebtedness (4,012) (8,539)
 Total $1,023 ($4,856)
 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 Ltd. (PCS Sales)
 -- PCS Sales (Iowa) Inc.
 -- PCS Sales (Indiana) Inc.
 -- Potash Corporation of Saskatchewan (Florida) Inc.
 -- Potash Corporation of Saskatchewan Transport Ltd.
 (PCS Transport)
 -- Saskterra Holdings Ltd.
 -- 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 cash consideration of $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 nine months ended Sept. 30, 1992 of 38,693,000 (1991 - 38,670,000).
 4. Comparative Figures
 Certain of the prior period's comparative figures have been reclassified to conform with the current period's presentation.
 -0- 10/26/92
 /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 -- LA031 -- 4910 10/26/92 14:34 EST
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Date:Oct 26, 1992
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