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Jan 28 (Reuters) - Potash Corp of Saskatchewan POT.TO reported a lower-than-expected quarterly profit and slashed its quarterly dividend, hurt by weakening fertilizer prices.
Potash prices have fallen sharply over the past year, under pressure from bloated capacity, soft grain prices and weak currencies in major consumers such as India and Brazil.
"Weaker fertilizer prices late in the year reduced our earnings for the quarter, giving rise to a more cautious outlook for all three nutrients as we begin 2016," Chief Executive Jochen Tilk said in a statement on Thursday. company forecast 2016 earnings of 90 cents to $1.20 per share. Analysts on average were expecting $1.33, according to Thomson Reuters I/B/E/S.
The world's biggest fertilizer company by capacity said average realized price for potash fell 16 percent to $238 per tonne in the fourth quarter, while nitrogen prices fell 29 percent to $288 per tonne.
Net earnings fell to $201 million, or 24 cents per share, in the quarter ended Dec. 31, from $407 million, or 49 cents per share, a year earlier
Revenue decreased nearly 29 percent to $1.35 billion.
Analysts on average expected earnings of 30 cents per share and revenue of $1.44 billion, according to Thomson Reuters I/B/E/S.
The company lowered its quarterly dividend by 34 percent to 25 cents per share.