UPDATE 3-Potash Corp cuts dividend, profit forecast again; shares fall
(Adds CEO comments on mine shutdowns, updates stock price)
By Rod Nickel and Arathy S Nair
July 28 (Reuters) - Potash Corp of Saskatchewan , the world's biggest fertilizer company by capacity, cut its full-year profit forecast and dividend for the second time this year on Thursday, and said that potash markets had bottomed out.
Prices for the fertilizer have fallen to their lowest level in a decade, weighed down by excessive mining capacity and soft export demand.
"We believe the uncertainty that weighed on potash market sentiment is now lifting and a recovery is beginning," Chief Executive Jochen Tilk said in a statement.
Potash will cut its quarterly dividend to 10 cents per share from 25 cents. Its shares were down 7 percent in New York and Toronto, and the U.S.-listed stock touched a low of $15.84. The stock is down 42 percent in the past 12 months.
Potash Corp "could sit at the bottom here for another year," said Bryden Teich, portfolio manager at Avenue Investment Management, which sold its Potash position in June.
"A year out, the fundamentals for the potash market still look murky," he said.
The company, which shut down its New Brunswick mine this year, may idle others once it completes expansion by next year of its lowest-cost mine at Rocanville, Saskatchewan, Tilk told analysts. Continued...