Potash Corp – Value Pivoted on Fertilizer Prices

Potash Corp revenues declined 8% due to the fall in potash prices following changes in the structure of the global potash market and excess fertilizer supply as producers ramped up production which is why its stock price fell down for the time being

 

Potash Corporation is the world’s largest producer of potash, nitrogen and phosphate fertilizers, and controls nearly 20% of the global supply of potash

 

Potash Corporation earns a bulk of its revenues (42%) through the sales of potash, while phosphates account for 30% of its sales, and sales of nitrogenous fertilizers generate 28% of the company’s topline1. Potash Corporation earns a bulk of its revenues (42%) through the sales of potash, while phosphates account for 30% of its sales, and sales of nitrogenous fertilizers generate 28% of the company’s topline.

 

For you info, Potash Corporation generates almost 58% of its sales in the US

 

As per statistics China is expected to be 75% dependent on potash imports in the long run that will help the company like Potash Corporation to increase its revenues .

 

Potash Corp expects the prices to range of potash will be between $240-270 per ton in 2014, based on estimates of potash futures prices that will increase the revenues of the company

 

Foot Locker’s Direct-to-Customers business is the fastest growing segment for the company, having grown at a CAGR of 15% over the last three years.

 

Potash Corp revenues declined 8% due to the fall in potash prices following changes in the structure of the global potash market and excess fertilizer supply as producers ramped up production which is why its stock price fell down for the time being.

 

Revenues of Potash Corp are expected to fall a further 13.4% in fiscal year 2014 if current market dynamics persist.

 

Potash Corp has invested in offshore as well and earnings from its offshore investments contributed $276 million to its fiscal year 2013 bottom line.