PotashCorp slashes dividend 34 per cent

SASKATOON -- Canada's largest potash producer is cutting its dividend by 34 per cent in response to weaker sales volumes and lower global fertiliser prices.

See Full Article

The announcement was included with the latest financial report from Potash Corporation of Saskatchewan (TSX:POT), which saw its fourth-quarter profit cut in half as a result of weak market conditions.

The Saskatoon-based company's net income, reported in U.S. dollars, dropped to $201 million or 24 cents per share from $407 million or 49 cents per share in the fourth quarter of 2014.

The value of its sales dropped to US$1.35 billion in the fourth quarter of 2015 from US$1.9 billion a year earlier.

During the quarter, PotashCorp declared dividends worth 38 cents per share but the payout to sharehilders will fall to 25 cents per share with the May payment.

The company recently announced the closure of its new potash mine in New Bruswick, resulting in the loss of up to 430 jobs.

Besides potash, the company produces nitrogen-based and phosphates-based materials used in fertilisers to stimulate crop growth.

"Weaker fertilizer prices late in the year reduced our earnings for the quarter, giving rise to a more cautious outlook for all three nutrients as we begin 2016," PotashCorp president and CEO Jochen Tilk said in a statement.

The company is forecasting its 2016 earnings will amount to between 90 cents and $1.20 per share, including between 10 and 20 cents per share in the first quarter.

That's down from $1.52 per share in 2015 and $1.82 per share in 2014.

Tilk said the dividend cut and suspension of potash production in New Brunswick will "strategically position the company and balance the interests of our shareholders, debtholders, employees and communities who depend on our enduring success."

He added PotashCorp's long-standing position that rising global crop production and better economics "will support improved market conditions."



Advertisements

Latest Economic News

  • Calgary and Saint John mayors urge NEB to reverse Energy East pipeline ruling

    Economic CTV News
    CALGARY -- Mayors from both ends of the proposed Energy East pipeline are calling for the National Energy Board to reverse its requirement that upstream and downstream emissions be included in its review of the $15.7-billion conduit. Source
  • Lawsuit tossed against Little Caesars over non-halal pepperoni

    Economic CTV News
    DETROIT -- A judge has rejected a lawsuit against a pizza franchise, alleging it sold pork as "halal pepperoni" at one of its locations in a Detroit suburb. The Detroit Free Press reports that on Thursday the Wayne County judge dismissed the lawsuit filed by Dearborn resident Mohamad Bazzi against Little Caesars Pizza. Source
  • Walmart testing service that delivers right into customers' fridges

    Economic CTV News
    NEW YORK -- Would you be OK with letting a stranger into your house for the sake of convenience? Walmart is testing the idea with a new service that lets a delivery person walk into your home when you're not there to drop off packages or put groceries in the fridge. Source
  • Quebec renews Uber's permit for another year with tighter rules

    Economic CTV News
    Quebec's transportation minister is renewing a deal allowing ride-hailing company Uber to operate for another year in the province. Laurent Lessard says the deal extension tightens the rules under which the San Francisco-based company will be permitted to continue offering its services to Quebecers. Source
  • Canadian firm applies to build $10-billion Jordan Cove LNG project in Oregon

    Economic CTV News
    CALGARY -- The Canadian company whose proposal to build an LNG export terminal in Oregon was derailed by U.S. regulators last year has resubmitted its application for a bigger, more expensive project. Calgary-based Veresen Inc. Source
  • OPEC says winning battle to end oil glut

    Economic CBC News
    OPEC and other oil producers are clearing a glut that has weighed on crude prices for three years and may wait until January before deciding whether to extend their output curbs beyond the first quarter of 2018, ministers said on Friday. Source
  • Mastermind Toys ramps up expansion even as Toys "R" Us flounders

    Economic CBC News
    Jon Levy's favourite playthings as a Toronto child growing up in the 1960s and 1970s included Lego blocks and fort-building kits — classics that still fly off the shelves of his Mastermind Toy stores today. "My true innovation in this business is being able to get inside my inner kid and determine whether it is something truly fun to play with," said Levy, the chain's co-founder, CEO and chief toy merchant. Source
  • Ontario signs formal agreement to join Quebec-California carbon market in 2018

    Economic CTV News
    QUEBEC -- Ontario has formally signed an agreement to join Quebec and California's cap-and-trade system on Jan. 1, 2018. The province has been running its own system this year aimed at lowering greenhouse gas emissions, with three sell-out auctions in a row. Source
  • Angry French famer block Champs-Elysees in pesticide protest

    Economic CTV News
    PARIS -- Angry French farmers are blocking Paris' famed Champs-Elysees in a protest against the government's agricultural policy. Sections of the normally pristine avenue were smothered in straw as about a hundred demonstrators brandished placards such as "Macron is killing farmers" and stopped morning traffic from passing Friday along the busy artery. Source
  • Angry French farmers block Champs-Elysees in pesticide protest

    Economic CTV News
    PARIS -- Angry French farmers are blocking Paris' famed Champs-Elysees in a protest against the government's agricultural policy. Sections of the normally pristine avenue were smothered in straw as about a hundred demonstrators brandished placards such as "Macron is killing farmers" and stopped morning traffic from passing Friday along the busy artery. Source