Potash Corporation of Saskatchewan Inc. (PotashCorp) today announced third-quarter earnings of $145.2 million, or $1.37 per share(1), which is a record for any third quarter in the company's history. Driven by higher volumes in potash and phosphate, these earnings surpassed the $130.3 million ($1.17 per share) earned in the same quarter last year and raised the year-to-date total to $445.8 million ($4.21 per share), compared to $425.8 million ($3.79 per share) for the first nine months of 2005. Gross margin for the quarter of $245.8 million was below the $279.5 million in the same period last year due to lower North American potash prices, higher offshore potash distribution costs and lower nitrogen prices. Cash flow prior to working capital changes of $228.8 million was 12 percent higher than in last year's third quarter, and raised the year-to-date total to $675.2 million, 1 percent higher than the nine-month total in 2005. Our guidance assumed a positive impact of approximately $0.20 per share for a tax and related interest refund in the quarter, while our actual benefit recorded was only $0.07. In addition to this $0.13-per-share difference, we had unforecasted writedowns of certain phosphate assets ($0.04 per share).

SASKATOON, SK, (Canada NewsWire via COMTEX News Network) – Potash Corporation of Saskatchewan Inc. (PotashCorp) announced today that Canpotex Limited, the offshore marketing company for Saskatchewan potash producers, and Sinofert, a leading fertilizer enterprise in the People's Republic of China (PRC), have reached an agreement for shipments to China covering the August to December 2006 shipping period. The agreement calls for a base price increase of US $25.00 per tonne over the 2005 contract price. Because of the late settlement, the short shipping period and the unknown impact of both of these factors on Chinese demand, the tonnages under the contract and the shipping schedule itself are to be finalized in an evolving manner over the remainder of 2006. Both parties will put forth mutual best efforts at meeting the content and the spirit of the existing Memorandum of Understanding(1) between the two companies, which governs potash market share in China.

Potash Corporation of Saskatchewan Inc. (PotashCorp) today announced record quarterly earnings of $175.1 million, or $1.65 per diluted share, as a result of continued strong nitrogen and phosphate performance, significant contributions from offshore investments and favorable changes to Canadian federal and provincial income tax rates. This exceeded the previous record of $164.2 million ($1.46 per share) set in the second quarter of 2005 and raised earnings for the first six months of 2006 to a record $300.6 million ($2.84 per share), compared to $295.5 million ($2.61 per share) in the same period last year. Second-quarter gross margin was $253.4 million, compared to $344.8 million in last year's second quarter, with the decline driven entirely by a shortfall in potash sales volume. Despite this, cash flow prior to working capital changes for the quarter remained strong, declining only 5 percent from the second quarter of 2005, to $257.0 million.

With improved performance in nitrogen and phosphate segments and increased income from global investments, Potash Corporation of Saskatchewan Inc. (PotashCorp) today announced record first-quarter earnings per share. Despite significantly reduced potash shipments in the absence of a price settlement with China, earnings rose to $1.19 per diluted share, exceeding the $1.15 per share in the same period last year. These first-quarter earnings were supplemented by a $12.3 million ($0.12 per share) cash tax recovery that more than offset additional costs ($0.08 per share) related to mine shutdowns, as we followed our long-held strategy of matching supply to demand.

Potash Corporation of Saskatchewan Inc. (PotashCorp) today purchased an additional 10.01 percent of Sinochem Hong Kong Holdings Limited (Sinofert) for US $126 million, completing the exercise of its option on these shares. This raised PotashCorp's ownership interest in Sinofert to 20 percent and includes the right to nominate a second member to Sinofert's Board of Directors.

Record fourth-quarter potash shipments to offshore customers and higher prices for all three nutrients pushed PotashCorp's earnings for the period to $117.1 million ($1.09 per diluted share) compared to $100.1 million ($0.88 per diluted share) in the same quarter last year. This is the best fourth quarter in our history and capped a year that set new company standards for net earnings, gross margin and potash production. Our 2005 earnings of $542.9 million ($4.89 per diluted share) were more than 80 percent higher than the previous record of $298.6 million ($2.70 per diluted share) set in 2004 and the most ever for a publicly traded North American fertilizer company.