TORONTO (miningweekly.com) – Fertiliser producer Potash Corporation of Saskatchewan on Thursday posted a first quarter profit of $308,3-million, or $1,02 a share, 46% lower than in the same period of 2008.

The net earnings also included tax adjustments of $166,8-million, of which approximately $95-million was included in the company's forecasts.

Profit was affected by sharply lower potash demand, after falling commodity prices prompted farmers to delay purchases of the crop nutrient, as well as weaker prices and sales volumes for nitrogen products and solid phosphate fertiliser.

In North America, “potash fertiliser sales ground to a virtual halt”, the firm said.

Potash Corporation has responded to weaker demand by reducing its production rate by 3,5-million tons a year so far in 2009.

However, customers in all major markets are now nearing the end of a “massive destocking”, Potash Corporation said.

“We expect a more normal second half of 2009 followed by a rush to refill the pipeline and feed necessary consumption growth in 2010.”

Still, based on lower volumes, at least in the first half of the year, the company has lowered its earnings forecast for 2009 to between $7,00 a share and $8,00 a share, based on a $1,10 Canadian dollar.

In January, Potash Corp said earnings a share were expected to be between $10 a share and $12 a share.