Potash Earnings Call Insights: Discipline Concerns and Prices in China
On Thursday, Potash Corporation of Saskatchewan, Inc. (NYSE:POT) reported its third quarter earnings and discussed the following topics in its earnings conference call. Take a look.
Joel Jackson – BMO Capital Markets: Bill, many investors are concerned that the several potash producers are becoming less disciplined. I was wondering what your thoughts of this are right now and what is the risk of this in your mind going forward as we see the industry significantly increase brownfield capacity over the next couple of years.
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William J. Doyle – President and CEO: When I say to you is that in softer markets when volumes are down you will get people that get a little bit nervous and it’s just a function of people scrambling for business and as the business gets more robust and volumes return they seem to calm down, so we’ve been doing this for a little while and I can tell you that it inevitably occurs during these times, I just think it’s a function of the marketplace with the overall pressure on volumes in 2012.
Prices in China:
Edlain Rodriguez – Lazard Capital Markets: Bill, quick question, one of your fellow Canpotex member recently intimidate that prices might have to go down in China in order for contract to get done. What are your stands on that and what’s your view on that?
William J. Doyle – President and CEO: We have actually negotiations going on right this week with the Chinese Canpotex folks. We just don’t comment on prices, what prices might do during negotiations. We just don’t think that’s helpful.