Bad ass opportunity!
Dec. 13 good entry point.
Potash announced record earnings for the first quarter of 2011, posting earnings of $732 million for the quarter as compared to $444 million in year-ago earnings. Gross margin for the first quarter was $1.1 billion, another improvement from $729 million in the first quarter of 2010. These earnings were driven by increased demand and favorable prices for the quarter in all three of Potash's nutrients. Demand was especially strong internationally in Latin America and Asia, with 3.0 million tons being shipped to these regions for the quarter. Domestic shipments in North American were 2.4 million tons.
Potash's segment margins grew to $743 million, the highest margin in company history for first quarter sales and a 40% increase in year-ago comparisons. Phosphate's gross margin similarly increased, more than doubling last year's earnings. Gross margin totaled $150 million for the quarter. Nitrogen's gross margin increased by 50% for the quarter, totaling $135 million.
Potash announced earnings of $402.7 million for the third quarter of 2010, the second-highest Q3 posting in the company's history. These earnings are a marked increase from earnings of $247.9 million in the third quarter of 2009. Earnings were driven primarily by increased demand for potash, phosphate, and nitrogen products as well as higher market potash prices. EBITDA for the quarter was $635.6 million and gross margin for the third quarter was $563.3 million. Potash's offshore potash-related investments brought in $75.6 million in income for the third quarter of 2010 and their market value was approximately $8.9 million.
Potash announced earnings of $472 million for the second quarter, its second-highest Q2 earnings in company history. These earnings are more than double the earnings posted in the second quarter of 2009. Gross margin for the quarter was approximately triple that of year-ago results, totaling $583.6 million. Similarly EBITDA (Earnings before interest, taxes, depreciation and amortization) as well as cash flows were double those of the previous year, totaling $768.9 million and $642.3 million respectively.
These earnings were driven by a rebounding global demand for fertilizer, high gross margins especially in potash sales, as well as positive international sales and investments in Israel Chemicals Ltd., Arab Potash Company Ltd., and Sociedad Quimica y Minera de Chila S.A., all helped raise income for the quarter. Potash sales volumes increased from 0.4 million tonnes in the second quarter of 2009 to 1.9 million tonnes in the second quarter of 2010.
Potash posted its second highest first quarter earnings in the first quarter of 2010. Potash announced earnings of $449.2 million for the quarter, a 46% increase from the $307.4 million earned in the first quarter of 2009. These gains were driven by the return of buyers who forewent fertilizer purchases in 2009, driving growth in Potash's sales across all three business segments. The Potash segment in particular generated 72% of the $715.1 million in gross margin earned in Q1 FY2010. Earnings before interest, taxes, depreciation and amortization were up from $290.9 million last year to $763.2 million. Cash flow similarly increased from $182.9 million to $587.9 million.
Potash posted earnings of $987.8 million for the year and $243.6 million for the quarter, reflecting losses from both the previous year and the previous quarter. Despite losses, Potash's earnings were the third highest in company history.
POT's Q4 Net Income increased from $376.8 million ($1.16 per share) in the year-ago period to $788 million ($2.56 per share) in their recently-ended Q4.
POT's workers' union voted to strike against it if a new labor contract could not be reached. A strike would affect three out of POT's seven Canadian mines and sideline 500 of its workers. The news caused share prices to fall from $216.05 USD to $194.00 over two days.
Potash announced a 3 for 1 stock split. Shareholder got an additional 2 shares for each share held. Dividend also increased 100% to 10 cents.