Why Potash Corp./Saskatchewan (USA) (POT) Earnings Aren’t Growing

PotashCorp has also done a good job of making the most of its opportunities. Unlike Mosaic Co (NYSE:MOS), PotashCorp has tapped the feed and industrial market to a much greater extent, therefore benefiting from the higher profit margins available from that market over pure phosphate-fertilizer sales. PotashCorp’s cost structure is also quite favorable, allowing it to survive through tough conditions that some of its competitors can’t endure.

In the PotashCorp earnings report, see if the company can avoid the same fate that hurt Mosaic Co (NYSE:MOS)’s results last week. Falling prices and weak demand in India were problematic for Mosaic, and given that both Mosaic and PotashCorp are all affected by the expiration of a supply contract with a major Chinese buyer, PotashCorp could see the same sales pressure hurt its results as well.

The article Why PotashCorp Earnings Aren’t Growing originally appeared on Fool.com is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool owns shares of CF Industries.

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