Potash Corp. said Thursday that its quarterly profit more than doubled, as a surge in grain prices boosted crop nutrient demand and allowed the world’s top fertilizer maker to raise prices on key products. The Chicago and Saskatchewan-based company said fourth-quarter net income rose to $482.3 million, or $1.61 a share, from $239.2 million, or 79 cents a share, a year earlier.
Potash Corp, the target of a failed $39 billion hostile bid last year, said costs from the takeover battle reduced its profit in the quarter by 16 cents a share.
The company is the No. 1 producer of the crop nutrient potash — a mineral that comes from underground mines in the Canadian province of Saskatchewan. The outlook for potash and other fertilizers is at its strongest in years as farmers rush to maximize yields while grain prices are at fresh highs.
Shares of Potash Corp recently hit a 28-month high of $174.31 in New York, well above the $130 offered last summer by mining giant BHP Billiton, whose bid was blocked by Canada’s government in November.
On Wednesday, the company announced a dividend increase and a 3-for-1 split of its common shares. Potash Corp said the move would help improve trading liquidity following the recent jump in its stock price.
The company raised its 2011 earnings forecast to a range of $8.40 to $9.60 a share. In October, it had forecast full-year 2011 earnings of $8 to $8.75 a share.
