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PotashCorp numbers at a glance
#3 in global ammonia capacity
2010 Net Sales1 – $1.6B, 26.9 percent of PotashCorp total
2010 Gross Margin – $510M, 19.4 percent of PotashCorp total
2010 Sales Volume by Region
2010 Sales Volume by Customer Type
1Non-GAAP Financial Measures and Reconciliations
Where it comes from
Nitrogen products are synthesized from the air (78 percent of air is nitrogen) using steam and natural gas.
Applications
- As fertilizer – builds proteins and enzymes, speeds plant growth
- As feed – essential to RNA, DNA and cell maturation
- Used in industrial products (plastics, resins, adhesives)
Competitive strengths
- Longer-term natural gas contracts in Trinidad primarily indexed to ammonia prices
- Lower-cost exporter to the US market, the world’s largest nitrogen importer
- Development of shale gas has resulted in a favorable cost position for our US nitrogen plants
- Geographic location of US-manufactured ammonia operations relatively insulated from competitive US Gulf imports
- Almost 80 percent of our ammonia sales from US plants is sold to less cyclical industrial customers
| Strategies | Capability to Deliver | Risks | Mitigation |
|---|---|---|---|
| Focus on being a lower delivered cost supplier to the US market | Multi-year gas contracts in Trinidad provide long-term advantage Enhancing our US nitrogen supply capability, including plans to resume production at our Geismar ammonia plant |
Countries with surplus low-cost natural gas may monetize it by converting it to nitrogen without considering demand | Maintain Trinidad’s cost advantage through gas contracts |
| Direct sales to less-cyclical industrial customers | Industrial customers — many linked by pipeline — take the majority of our ammonia sales from our US plants |
Competition from low-cost imports through the US Gulf | Focus on customers that rely on long-term, secure supply |
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Last Reviewed: Sep 22, 2011
