Canada: Top 1000, Pain, No Gain

[Fiat Currency]

For those of you who might follow Canadian equities ...

http://www.theglobeandmail.com/repor...rticle1196844/

Call it the Great Shellacking of 2008. Fallout from the global credit crunch, suddenly inhospitable markets and the worst economic slump since the 1930s rained down on Corporate Canada, washing away black ink and leaving a handful of household names in surprisingly difficult straits. True, plenty of stalwarts showed that they still know how to make a buck in hard times, thanks to such time-tested tricks as cost-cutting, reduced capital spending and debt avoidance. But few companies in any sector were spared bottom-line damage—unless they were fortunate enough to be peddling oil at the stratospheric prices that still prevailed through the first half of the year.
Canada’s 1,000 largest publicly listed companies managed to pile up only $74.1 billion in total earnings in 2008, a dramatic decline of 30.3% from the year before. Subtract energy gains from the mix, and total profit would have been down a stunning 54.5%.

... (more)

:eek: Hmmm ... while summer is here - it's hard to see green shoots in those numbers.

[GRG55]

Re: Canada: Top 1000, Pain, No Gain

For those of you who might follow Canadian equities ...

http://www.theglobeandmail.com/repor...rticle1196844/



:eek: Hmmm ... while summer is here - it's hard to see green shoots in those numbers.

And it doesn't look as though its going to get better any time soon.

Hard to grow green shoots into big plants without fertilizer...:p

Potash Corp cuts quarterly outlook on weaker sales
Reuters, Friday June 26 2009

TORONTO, June 25 (Reuters) - Potash Corp of Saskatchewan Inc, the world's biggest fertilizer producer, slashed its second-quarter earnings forecast on Thursday, due to substantially lower than expected potash sales volumes, and shares fell 7.8 percent in after-hours trading.

"The change (in outlook) reflects substantially lower than forecasted potash sales volumes due to deferral of purchases by customers around the world and lower realized prices for phosphate fertilizers," the company said in a brief statement, issued after the close of markets...

...Roughly 40 percent of global potash production capacity has been idled since the second-half of 2008, but despite tight supply-side management, North American potash inventories have risen steadily in recent months to about 3.9 million tonnes, which is 99 percent higher than the five-year average.

Potash Corp now expects second-quarter earnings of 70 cents a share, down from the $1.10 to $1.50 per share it had earlier forecast...

[cjppjc]

Re: Canada: Top 1000, Pain, No Gain

And it doesn't look as though its going to get better any time soon.

Hard to grow green shoots into big plants without fertilizer...:p

Potash Corp cuts quarterly outlook on weaker sales
Reuters, Friday June 26 2009

TORONTO, June 25 (Reuters) - Potash Corp of Saskatchewan Inc, the world's biggest fertilizer producer, slashed its second-quarter earnings forecast on Thursday, due to substantially lower than expected potash sales volumes, and shares fell 7.8 percent in after-hours trading.

"The change (in outlook) reflects substantially lower than forecasted potash sales volumes due to deferral of purchases by customers around the world and lower realized prices for phosphate fertilizers," the company said in a brief statement, issued after the close of markets...

...Roughly 40 percent of global potash production capacity has been idled since the second-half of 2008, but despite tight supply-side management, North American potash inventories have risen steadily in recent months to about 3.9 million tonnes, which is 99 percent higher than the five-year average.

Potash Corp now expects second-quarter earnings of 70 cents a share, down from the $1.10 to $1.50 per share it had earlier forecast...

How is that possible? I would have thought Potash would be recession proof. This stuff works. Isn't the product cost effective for farmers?

[dummass]

Re: Canada: Top 1000, Pain, No Gain

If the farmers aren't buying fertilizer, they aren't growing as much food. What does that say about food prices in the future?

[cjppjc]

Re: Canada: Top 1000, Pain, No Gain

If the farmers aren't buying fertilizer, they aren't growing as much food. What does that say about food prices in the future?

Why aren't the farmers growing as much food?

[GRG55]

Re: Canada: Top 1000, Pain, No Gain

How is that possible? I would have thought Potash would be recession proof. This stuff works. Isn't the product cost effective for farmers?

Many farmers, including many of those in Canada and the USA, need credit to buy the inputs at the beginning of the season. That credit is now less available, and more costly, than it used to be. Hence less sales of inputs this year. This was predicted last fall and winter. Now its happening...

[cjppjc]

Re: Canada: Top 1000, Pain, No Gain

Many farmers, including many of those in Canada and the USA, need credit to buy the inputs at the beginning of the season. That credit is now less available, and more costly, than it used to be. Hence less sales of inputs this year. This was predicted last fall and winter. Now its happening...

Thanks for the explanation. Do I get to guess where this prediction was made:cool: