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5 Key Things Potash Corp Management Wants You to Know

By Neha Chamaria – Mar 5, 2016 at 1:00PM

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Potash Corp's recent earnings call reveals surprising information about the company's challenges and initiatives

A bumpy ride ahead for PotashCorp? Image source: PotashCorp's Fact Sheet. 

As a Potash Corporation (POT) investor, you probably know what a bad year 2015 proved to be for the fertilizer giant, with its sales and net income slumping double digits. In fact, PotashCorp was among the worst performers in the industry as it bore the brunt of a slide in demand and prices of potash. Rivals like Mosaic (MOS -4.29%) weren't hurt much, thanks to its primary focus on the relatively resilient nutrient, phosphate.

Chances are, 2016 will be another bitter year for PotashCorp as it projects its earnings per share to drop a staggering 31%, the mid-point of its guidance range of $0.9-$1.2. But you may be surprised to know that both Mosaic and PotashCorp anticipate a strong spring planting season in North America, and foresee 2016 global potash shipments to be in line, if not higher, with 2015 levels.

So if it isn't actually potash, which nutrient is ailing PotashCorp? If it isn't North America, which market is denting its growth? What is the company doing to tackle the headwinds, and can its targeted cost savings boost profitability in the near future? The answers to these crucial questions were hidden in PotashCorp's recent earnings call. If you missed it, fret not and go through the slideshow below to find out the surprising answers now.

Neha Chamaria has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Stocks Mentioned

Potash Corporation of Saskatchewan Inc. Stock Quote
Potash Corporation of Saskatchewan Inc.
Mosaic Stock Quote
$49.10 (-4.29%) $-2.20

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