Potash Corp. of Saskatchewan Inc. (TSX:POT) cut its earnings guidance for the year as it reported Thursday a sharp drop in its profit for its latest quarter.
The company said it was hurt by weaker prices for potash and nitrogen as well as lower offshore potash sales volumes.
PotashCorp, which keeps its books in U.S. dollars, said it earned US$75 million or nine cents per diluted share for its first-quarter, down from $370 million or 44 cents per diluted share a year ago.
Sales fell to $1.21 billion compared with $1.67 billion in the first three months of 2015.
The company cut its full-year earnings guidance to 60 cents to 80 cents per share compared with an estimate in January for earnings between 90 cents and $1.20 per share for the year.
PotashCorp also lowered its capital spending guidance by $100 million to between $700 million and $800 million.
"Lower prices for all nutrients weighed on our performance for the quarter and contributed to a more subdued outlook for the year," PotashCorp chief executive Jochen Tilk said in a statement.
"We see better conditions for the remainder of 2016, but recognize that the timing and strength of a recovery is still unfolding."
