PotashCorp trimmed hopes for potash profits this year even as it voiced confidence in prospects for fertilizer groups, flagging the "undeniable need" for fertilizers to ease the "unrelenting pressure" on food production.

The world's biggest potash group, by capacity, lowered by $100m to $2.8-3.1bn its forecast for gross margins on potash this year, citing downtime at its Patience Lake and Cory operations which had lowered sales prospects.

The forecast for full-year potash shipments was lowered to 9.5m-9.7m tonnes, from 9.6-10m tonnes.

However, with the contribution from nitrogen and phosphate operations slightly improved, PotashCorp stuck by an estimate for full year earnings of $3.40-3.80 per share.

'Powerful motivator' 

Indeed, while acknowledging that "some investors have grown nervous as crop commodity prices have declined" from summer highs, adding that world economic concerns "cannot be ignored", PotashCorp said the case for fertilizer sector investment remained strong.

"The strength of fertilizer demand is tied to the global development story – a growing population demanding more and better food – and we believe the long-term drivers of our success continue to be strong," the Canada-based group said.

"With low global grain inventories continuing to support historically high crop prices, the prospect of strong farmer returns remains.

"We believe this will serve as a powerful motivator to improve fertilizer applications and, ultimately, food production."

'Strong crop economics' 

In the July-to-September quarter, the quest to exploit "strong crop economics" supported fertilizers demand worldwide, lifting PotashCorp's earnings for the quarter by 141% to $826m.

"Our performance reflected the unrelenting pressure on global food production – and the strength of our growing fertilizer enterprise," Bill Doyle, the PotashCorp chief executive, said.

However, the group's earnings per share, while jumping to $0.94 from $0.38 the year before, fell just short of Wall Street expectations, pitched at $0.95.