Listed Market Change (NASDAQ:POT)

Guidance Report:

As it is difficult to predict performance in this environment, we currently estimate first-quarter net income will be in the range of $0.70-$1.00 per share, based on a $1.15 Canadian dollar relative to the US dollar. As we expect demand to return in major fertilizer markets in the second quarter, our full-year earnings are currently estimated to be in the range of $10.00-$12.00 per share, weighted heavily toward the second half, based on an average $1.10 exchange rate. In the current trading range of the Canadian dollar relative to the US dollar, each one-cent change in the Canadian dollar typically impacts our foreign exchange line by approximately $9 million, or $0.02 per share on an after-tax basis, which is primarily a non-cash item.

While we expect slow demand in all major potash markets early in 2009, the pace of sales should intensify in the second quarter. In North America, because farmers deferred fertilizer purchases in the fall when at least 40 percent of potash applications traditionally occur, we expect above-normal spring applications. This should draw inventories substantially lower by the end of the spring season and lead to considerable restocking of the system in the second half of the year.

Source: Canada NewsWire (January 22, 2009)