POTASH CORP. OF SASKATCHEWAN $38 - Toronto symbol POT

POTASH CORP. OF SASKATCHEWAN $38 (Toronto symbol POT; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 829.7 million; Market cap: $31.5 billion; Price-to-sales ratio: 4.5; Dividend yield: 4.2%; TSINetwork Rating: Average; www.potashcorp.com) has agreed to invest $52 million in its sulphuric acid plants in the U.S. (all amounts except share price and market cap in U.S. dollars).

These improvements, part of a settlement with environmental regulators, will cut these facilities’ emissions. Potash Corp. will also pay a $1.3-million fine.

The total cost of $53.3 million is equal to 17% of the $317 million, or $0.38 a share, the company earned in the three months ended September 30, 2014. The latest earnings are also down 11.0%, from $356 million, or $0.41 a share, a year earlier. Sales rose 8.0%, to $1.6 billion from $1.5 billion, as higher potash volumes offset an 8.5% drop in average prices.

Potash Corp. is a hold.

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