Sales

In 2006, PotashCorp sold products for net proceeds* of almost $3.4 billion, an increase of 62 percent since 2001. The growth over this period is primarily the result of higher sales volumes and prices of higher-margin potash products, supplemented by higher prices for nitrogen products and non-commodity phosphates.

PotashCorp's products serve three different market sectors:

• Fertilizer, which involves the nutrients potash, nitrogen and phosphate;
• Animal feed supplements, mostly phosphate and some urea; and
• Industrial, mainly nitrogen products and purified phosphoric acid.

Fertilizer is the most important business and over the last three years has made up 60 percent of net sales* and produced 70 percent of gross margin. Potash, the core nutrient in the company's long-term strategy, typically generates about 60 percent of total gross margin.

*See reconciliation and description of certain non-GAAP measures in Financial Performance Indicators in the 2006 Financial Review Annual Report.

Markets

On a company-wide basis, North American markets account for the bulk of PotashCorp's sales volumes. In 2006, 94 percent of nitrogen sales, 64 percent of phosphate sales and 39 percent of potash sales were made within North America.

Offshore markets are growing rapidly, driven primarily by growth in potash demand. More than 60 percent of the company's potash goes offshore to nations with growing populations and economies. More than one-third of PotashCorp's phosphate sales are now made offshore and 6 percent of nitrogen sales. The company's strategy is to continue to increase offshore sales.

Sales to US, Canada and Other Countries