PotashCorp Reports Second-Quarter Earnings of $0.73 per Share

Symbol: POT
Listed: TSX, NYSE 
Key Highlights 


    --  Second-quarter earnings of $0.73 per share(1); first-half 2013
        earnings of $1.37 per share
    --  Second-quarter potash sales volumes of 2.5 million tonnes;
        six-month total of 4.8 million tonnes
    --  Record first-half cash provided by operating activities of $1.9
        billion
    --  Third-quarter 2013 earnings guidance of $0.45-$0.60 per share
    --  Full-year 2013 earnings guidance adjusted to $2.45-$2.70 per
        share

SASKATOON, July 25, 2013 /CNW/ - Potash Corporation of Saskatchewan Inc. 
(PotashCorp) today reported second-quarter earnings of $0.73 per share ($643 
million), bringing earnings for the first six months of 2013 to $1.37 per 
share ($1.2 billion). The second-quarter and first-half totals surpassed the 
$0.60 and $1.16 per share earned in the respective periods of 2012, although 
the previous year's results included a $0.39 per share impairment charge 
related to our investment in Sinofert Holdings Limited (Sinofert).

Second-quarter gross margin of $1.0 billion trailed the $1.2 billion generated 
in the same period last year, as contributions from each of our three 
nutrients fell. As a result, the $1.8 billion generated during the first six 
months of 2013 was slightly below the $1.9 billion earned in the comparative 
period last year.

Adjusted earnings before finance costs, income taxes and depreciation and 
amortization(2) (EBITDA) of $1.1 billion for the quarter and $2.1 billion for 
the first six months both trailed 2012 results. Second-quarter cash flow 
provided by operating activities of $1.2 billion approached the record 
established in the same period last year, elevating our 2013 first-half total 
to $1.9 billion -the highest six-month total in our history.

Our offshore investments in Arab Potash Company (APC) in Jordan, Israel 
Chemicals Ltd. (ICL) in Israel, Sociedad Quimica y Minera de Chile S.A. (SQM) 
in Chile and Sinofert in China contributed $89 million during the quarter and 
$166 million for the first half of the year. Before the impact of an 
impairment charge recorded against our earnings in 2012, both totals trailed 
prior-period levels. The market value of our investments in these publicly 
traded companies equated to approximately $6.8 billion, or $8 per PotashCorp 
share at market close on July 24, 2013.

"Global fertilizer demand was strong during the quarter, but highly 
competitive markets around the world had an impact on our results," said 
PotashCorp President and Chief Executive Officer Bill Doyle. "Despite some 
weakening of prices in each of our nutrients, the continued engagement of 
buyers in our key markets was a positive sign. Farmers demonstrated their 
commitment to improving soil fertility and capitalizing on favorable 
agricultural economics, which benefits global food production and our company."

Market Conditions
The pace of global potash shipments remained robust during the quarter as 
buyers in all key markets were actively securing new supply. In North America, 
challenging spring planting conditions affected fertilizer activity in some 
regions, but a late push by farmers to ensure the required nutrients were in 
place to maximize yields and economic returns kept dealers engaged throughout 
the quarter. Shipments from North American producers surpassed the 
second-quarter and six-month totals of 2012, even as dealers managed their 
supply to minimize inventories at the close of the planting season. In 
offshore markets - both contract and spot - buyers actively procured new 
supply or took delivery of committed tonnes, which helped raise shipments from 
North American producers to record levels for both the second quarter and the 
first half. Despite a strong demand environment, increased competitive 
pressures resulted in lower prices in all key markets relative to the same 
periods last year.

In nitrogen, robust industrial and agricultural demand led to increased 
shipments from US producers for most products during the quarter. Even with 
substantial domestic requirements, a delayed spring application season and 
significant product availability from offshore suppliers put downward pressure 
on key benchmark prices. This was most notable in urea as US imports rose 
sharply during the past nine months, whereas prices for ammonia and other 
nitrogen products fell less dramatically on tighter supply/demand fundamentals.

Global phosphate markets continued to be impacted by the lack of substantive 
engagement from buyers in India, the world's largest phosphate importer. 
Although fertilizer dealers managed their supply requirements cautiously in 
the absence of clear market direction, demand in North America stayed 
relatively strong and shipments from US producers to Latin American countries 
were robust. Despite India's return to the solid fertilizer market midway 
through the quarter, prices for all phosphate fertilizer products trended 
lower.

Potash
Second-quarter potash gross margin of $613 million - down from $801 million in 
the same period last year - brought the six-month total of $1.1 billion on par 
with the comparative period of 2012.

Sales volumes reached 2.5 million tonnes for the second quarter and 4.8 
million tonnes for the first six months -totals that reflected a small 
decline from the same quarter last year but a 24 percent increase for the 
first half. In North America, robust demand at the farm level pushed sales 
volumes well above the comparative periods of 2012 for both the quarter (28 
percent) and first six months (55 percent). Canpotex(3) shipments to offshore 
markets maintained their record pace, with the majority of this quarter's 
volumes directed to Latin America (26 percent), China (15 percent), India (12 
percent) and other Asian countries (44 percent). Although second-quarter 
offshore sales volumes (1.7 million tonnes) trailed the total for the same 
period last year - largely the result of a decline in our Canpotex entitlement 
and a larger percentage of first-half shipments from New Brunswick during the 
first quarter of 2013 - our six-month total (3.1 million tonnes) surpassed 
that of the same period of 2012.

Our average realized potash price declined to $356 per tonne from $433 per 
tonne in the second quarter of 2012, primarily due to competitive pressures 
moving contract and spot market pricing lower.

Although we took fewer shutdown weeks than in last year's second quarter, our 
production declined by 5 percent to 2.7 million tonnes as we operated our 
Lanigan facility at reduced rates to match our production to demand. The 
absence of higher-cost tonnes from Esterhazy more than offset the impact of 
reduced production and led to improved per-tonne cost of goods sold, which was 
down 9 percent for the second quarter and 13 percent for the first half 
relative to the comparable periods last year. During the quarter, we safely 
and successfully completed a Canpotex entitlement run at our Cory facility 
that will increase our allocation for the second half of 2013 to a level more 
closely aligned with that of the previous year.

Nitrogen
Despite recent volatility in nitrogen prices, we generated gross margin of 
$276 million in the second quarter, trailing only the record $302 million 
earned in the same period last year. Of this total, our Trinidad operation 
generated $90 million while our US operations contributed $186 million - with 
approximately $30 million of that from our recently expanded Geismar facility. 
Gross margin for the first six months of 2013 reached a record $547 million, 
eclipsing the previous mark of $521 million earned in the same period last 
year.

Second-quarter sales volumes of 1.4 million tonnes exceeded the 1.3 million 
tonnes sold in the same quarter of 2012. Our ability to increase production of 
downstream nitrogen products following the restart of ammonia capacity at 
Geismar was the primary driver of this increase, although this benefit was 
partially offset by lower ammonia production at our Trinidad facility due to 
natural gas curtailments. For the first six months, sales volumes of 2.9 
million tonnes were 11 percent above the same period of 2012.

Our average realized prices for the quarter fell to $406 per tonne from $436 
per tonne in the same period last year, primarily reflecting a sharp decline 
in urea prices.

Per-tonne cost of goods sold declined in the quarter despite a marginal 
increase in natural gas costs, as we incurred significantly lower costs at 
Geismar relative to the same period of 2012.

Phosphate
Second-quarter phosphate gross margin of $90 million trailed the $96 million 
generated in the same period last year. Our ability to capture more stable 
margins in feed and industrial products helped deliver $49 million of this 
quarter's total, while fertilizer products contributed $37 million. Gross 
margin for the first six months of $182 million was below the $248 million 
earned in the same period last year, primarily due to lower realized prices 
for fertilizer products.

Phosphate sales volumes for the quarter totaled 0.9 million tonnes and 1.8 
million tonnes for the first six months, both relatively flat with the 
comparative periods of 2012.

Our average realized phosphate prices for the quarter were $517 per tonne, 
down from $552 per tonne during the same period last year. The change 
primarily reflects a $44-per-tonne decline in prices for fertilizer products, 
while prices for feed and industrial products were relatively flat.

Per-tonne cost of goods sold decreased 7 percent from last year's second 
quarter, largely because the 2012 total included a significant asset 
retirement obligation charge and severance expense. Lower costs for sulfur - a 
key input in the production of phosphate products - further improved our 2013 
results, although this was partially offset by higher ammonia costs.

Financial
Provincial mining and other taxes increased to $81 million in the second 
quarter from $72 million in the same period last year. Our capital-related 
cash expenditures totaled $354 million in the quarter.

The change in our quarter-over-quarter ordinary earnings (before the non-tax 
deductible Sinofert impairment charge during the second quarter of 2012) led 
to our income tax expense decreasing to $245 million from $304 million in the 
same period last year.

In May, we announced a 25 percent increase in our dividend. This was our 
fourth dividend enhancement since the start of 2011, representing a cumulative 
increase of 950 percent.

Market Outlook
Although global crop markets experienced volatility in the first half of 2013, 
the agronomic and economic incentives that drive fertilizer demand remain 
attractive for farmers. Strong demand for potash, nitrogen and phosphate 
materialized as expected in the first six months of the year and we anticipate 
that agricultural conditions will continue to support healthy fertilizer 
applications in major growing regions for the balance of the year.

In potash, we believe the demand story that is unfolding is a product of 
renewed growth in many developed and emerging markets. We expect that 2013 
global shipments will be similar to the record set in 2011 (nearly 56 million 
tonnes) with shipments to each major market relatively in line with previous 
forecasts.

In North America, we anticipate strong engagement through the balance of the 
year as dealers work to position potash in expectation of an active fall 
application season. Prices for our summer-fill program reset to $420 per short 
ton (Midwest warehouse), or approximately $463 per metric tonne, and we are 
beginning to see buyers returning to the market to restock depleted 
inventories. While the late spring planting could result in a condensed fall 
application window, we anticipate that a push by farmers to address declining 
potassium levels in their soils will result in second-half shipments exceeding 
historical totals.

Demand from Latin America, especially Brazil, has been particularly strong 
through the first six months of 2013. We anticipate this market will continue 
importing potash at high levels in preparation for its key planting season 
later this year, although it may slow slightly from last year's record 
second-half levels. For the year, we forecast total demand in this market will 
surpass previous period totals.

Shipments of first-half potash volume commitments to China by major suppliers 
are now reported to be largely complete - with those from Canpotex completed 
in early July. Discussions on second-half contracts are continuing and we 
anticipate a new supply agreement will be reached, although shipments during 
the third quarter could be minimal.

After a slow start to 2013, buyers in other Asian countries (outside of China 
and India) increased purchases in the second quarter and are working to ensure 
potash supply will meet anticipated demand. With supportive agronomic and 
economic incentives in place, we expect total shipments in this region will 
outpace 2012 levels.

In India, the potash situation remains complex. While an early and healthy 
monsoon led to an increase in fertilizer demand in June, India's current 
fertilizer subsidy program continues to create a large pricing gap between 
nitrogen and potash fertilizers, and recent currency weakness has intensified 
the disparity. We do not expect any significant change to our previous 
forecast of total shipments to this market of approximately 4 million tonnes, 
although Canpotex's third-quarter movements could slow from their strong pace 
in recent months.

Financial Outlook
In this environment, we have revised our financial outlook. We now forecast 
2013 potash segment gross margin in the range of $1.8-$2.1 billion, with 
shipment estimates unchanged at between 8.5 million and 9.2 million tonnes. 
Included in our sales volumes assumption is an increase in our second-half 
Canpotex entitlement as a result of successfully proving 3 million tonnes of 
capacity at our Cory facility, raising PotashCorp's allocation percentage to 
approximately 51.5 percent.

Even with the expectation of a healthy potash order book for the remainder of 
the year, we have taken the steps necessary to balance our supply with demand 
- as we have done consistently throughout our history. We plan to take our 
normal potash maintenance downtime during the third quarter, as well as six 
additional weeks at Cory. We also intend to operate Lanigan and Rocanville at 
reduced rates for the rest of 2013. We expect that per-tonne operating costs 
will rise - as is typical - for the third quarter as a result of reduced 
production levels, but anticipate annual costs will remain well below those of 
the previous year.

In nitrogen, the resumption of ammonia production at Geismar has us on track 
to surpass 2012 sales volumes, although we anticipate slightly lower ammonia 
availability during the third quarter due to a scheduled turnaround at our 
Trinidad facility. While the sharp contraction in nitrogen prices appears to 
be slowing, the full impact of the recent decline is likely to be reflected in 
our third-quarter realizations. We believe favorable cost variances will help 
offset lower prices and anticipate gross margin for 2013 could reach record 
levels.

Despite recent weakness in global phosphate fertilizer prices, we forecast 
gross margin will remain relatively stable through the balance of the year, 
aided by expectations that our sales volumes will surpass those of 2012 and 
the decline of costs for sulfur, ammonia and our mined phosphate rock. We 
anticipate that the stability of our feed and industrial products will counter 
volatility in fertilizer markets and enhance the profitability of our 
phosphate business.

In this environment, we now forecast nitrogen and phosphate will contribute 
combined gross margin of $1.3-$1.5 billion for 2013.

Given reduced profitability across the fertilizer industry, we now expect our 
offshore investments to contribute dividends and equity earnings between $320 
million and $340 million for the year.

Other updates to our annual guidance include a reduction in our forecast for 
selling and administrative costs to $230-$240 million; finance costs adjusted 
to $130-$150 million; and annual effective income tax rate shifted to a range 
of 27-28 percent.

Capital expenditures, excluding capitalized interest and major repairs and 
maintenance, are still anticipated to approximate $1.5 billion.

Based on these factors and guidance items above, PotashCorp now forecasts 
full-year 2013 net income at $2.45-$2.70 per share, including third-quarter 
earnings in the range of $0.45-$0.60 per share.

Conclusion
"Rising global demand for all three crop nutrients continues to reflect the 
underlying reality that farmers and fertilizer buyers around the world are 
working to improve soil fertility and food production," said Doyle. "As this 
need for crop nutrients, especially potash, continues to grow, we believe it 
translates into significant opportunities for our company. As we have seen 
throughout our history, the timing of increases in demand and prices is not 
perfectly predictable, but we are confident that a commitment to running our 
business responsibly and with patience will be rewarded. We will continue to 
do the right things for long-term success, managing our assets to maximize the 
benefits for all our stakeholders."

Notes

  1. All references to per-share amounts pertain to diluted net income


 per share.
  2. See reconciliation and description of non-IFRS measures in the 
 attached section titled "Selected Non-IFRS Financial Measures and 
 Reconciliations."
  3. Canpotex Limited (Canpotex), the offshore marketing company for 
 Saskatchewan potash producers. 
PotashCorp is the world's largest crop nutrient company and plays an integral 
role in global food production. The company produces the three essential 
nutrients required to help farmers grow healthier, more abundant crops. With 
global population rising and diets improving in developing countries, these 
nutrients offer a responsible and practical solution to meeting the long-term 
demand for food. PotashCorp is the largest producer, by capacity, of potash 
and third largest producer of nitrogen and phosphate. While agriculture is its 
primary market, the company also produces products for animal nutrition and 
industrial uses. Common shares of Potash Corporation of Saskatchewan Inc. are 
listed on the Toronto Stock Exchange and the New York Stock Exchange. 
This release contains forward-looking statements or forward-looking 
information (forward-looking statements). These statements can be identified 
by expressions of belief, expectation or intention, as well as those 
statements that are not historical fact. These statements are based on certain 
factors and assumptions including with respect to: foreign exchange rates, 
expected growth, results of operations, performance, business prospects and 
opportunities and effective tax rates. While the company considers these 
factors and assumptions to be reasonable based on information currently 
available, they may prove to be incorrect. Several factors could cause actual 
results or events to differ materially from those expressed in the 
forward-looking statements, including, but not limited to the following: 
variations from our assumptions with respect to foreign exchange rates, 
expected growth, results of operations, performance, business prospects and 
opportunities, and effective tax rates; fluctuations in supply and demand in 
the fertilizer, sulfur, transportation and petrochemical markets; costs and 
availability of transportation and distribution for our raw materials and 
products, including railcars and ocean freight; changes in competitive 
pressures, including pricing pressures; adverse or uncertain economic 
conditions and changes in credit and financial markets; the results of sales 
contract negotiations within major markets; economic and political uncertainty 
around the world; timing and impact of capital expenditures; risks associated 
with natural gas and other hedging activities; changes in capital markets; 
unexpected or adverse weather conditions; changes in currency and exchange 
rates; unexpected geological or environmental conditions, including water 
inflows; imprecision in reserve estimates; adverse developments in new and 
pending legal proceedings or government investigations; acquisitions we may 
undertake; strikes or other forms of work stoppage or slowdowns; rates of 
return on and the risks associated with our investments; changes in, and the 
effects of, government policies and regulations; security risks related to our 
information technology systems; and earnings and the decisions of taxing 
authorities, which could affect our effective tax rates. Additional risks and 
uncertainties can be found in our Form 10-K for the fiscal year ended December 
31, 2012 under the captions "Forward-Looking Statements" and "Item 1A - Risk 
Factors" and in our other filings with the US Securities and Exchange 
Commission and the Canadian provincial securities commissions. Forward-looking 
statements are given only as at the date of this release and the company 
disclaims any obligation to update or revise the forward-looking statements, 
whether as a result of new information, future events or otherwise, except as 
required by law. 
PotashCorp will host a Conference Call on Thursday, July 25, 2013 at 1:00 pm 
Eastern Time. 
Telephone Conference:Dial-in numbers: 
--  From Canada and the US: 1-877-881-1303 


    --  From Elsewhere: 1-412-902-6510

Live Webcast:Visit www.potashcorp.com
    --  Webcast participants can submit questions to management online
        from their audio player pop-up window.
                         Potash Corporation of Saskatchewan Inc.
             Condensed Consolidated Statements of Financial Position
                  (in millions of US dollars except share amounts)
                                              (unaudited)
                                                                         
                                                                 December
                                                     June 30,      31,

As at                                                   2013        2012
                                                                         

Assets                                                                   
       Current assets                                                    
         Cash and cash
         equivalents                              $        630 $      562
         Receivables                                       949      1,089
         Inventories                                       720        762
         Prepaid expenses
         and other current
         assets                                             67         83
                                                         2,366      2,496
       Non-current assets                                                
         Property, plant
         and equipment                                  11,844     11,505
         Investments in
         equity-accounted
         investees                                       1,266      1,254
         Available-for-sale
         investments                                     2,011      2,481
         Other assets                                      404        344
         Intangible assets                                 134        126

Total Assets                                      $     18,025 $   18,206
                                                                         
                                                                         

Liabilities                                                              
       Current liabilities                                               
         Short-term debt
         and current
         portion of
         long-term debt
         (Note 2)                                 $        495 $      615
         Payables and
         accrued charges                                 1,062      1,188
         Current portion of
         derivative
         instrument
         liabilities                                        49         51
                                                         1,606      1,854
       Non-current
       liabilities                                                       
         Long-term debt
         (Note 2)                                        2,968      3,466
         Derivative
         instrument
         liabilities                                       146        167
         Deferred income
         tax liabilities                                 1,843      1,482
         Pension and other
         post-retirement
         benefit
         liabilities                                       413        569
         Asset retirement
         obligations and
         accrued
         environmental
         costs                                             592        645
         Other non-current
         liabilities and
         deferred credits                                  140        111

Total Liabilities                                        7,708      8,294
                                                                         

Shareholders' Equity                                                     
       Share capital                                     1,585      1,543
         Unlimited
         authorization of
         common shares
         without par value;
         issued and
         outstanding
         866,920,656 and
         864,900,513 at
         June 30, 2013 and
         December 31, 2012,
         respectively                                                    
       Contributed surplus                                 310        299
       Accumulated other
       comprehensive income                                946      1,399
       Retained earnings                                 7,476      6,671

Total Shareholders' Equity                              10,317      9,912

Total Liabilities and
Shareholders' Equity                              $     18,025 $   18,206

(See Notes to the Condensed Consolidated Financial Statements)
        
        
        
        
        
                           Potash Corporation of Saskatchewan Inc.
                        Condensed Consolidated Statements of Income
                 (in millions of US dollars except per-share amounts)
                                                (unaudited)
                                                                         
                                   Three Months        Six Months Ended
                                       Ended
                                       June 30                June 30
                                  2013      2012        2013        2012
                                                                         

Sales (Note 3)                $   2,144 $   2,396 $      4,244 $    4,142

Freight, transportation and
distribution                      (147)     (123)        (296)      (227)

Cost of goods sold              (1,018)   (1,074)      (2,102)    (2,018)

Gross Margin                        979     1,199        1,846      1,897

Selling and administrative
expenses                           (51)      (56)        (117)      (113)

Provincial mining and other
taxes                              (81)      (72)        (144)      (100)

Share of earnings of
equity-accounted investees           37        68          117        143

Dividend income                      54        67           54         67

Impairment of
available-for-sale
investment                            -     (341)            -      (341)

Other expenses                     (11)       (8)         (12)       (11)

Operating Income                    927       857        1,744      1,542

Finance costs                      (39)      (31)         (74)       (65)

Income Before Income Taxes          888       826        1,670      1,477

Income taxes (Note 5)             (245)     (304)        (471)      (464)

Net Income                    $     643 $     522 $      1,199 $    1,013
                                                                         

Net Income per Share (Note
6)                                                                       
       Basic                  $    0.74 $    0.61 $       1.39 $     1.18
       Diluted                $    0.73 $    0.60 $       1.37 $     1.16
                                                                         

Dividends Declared per
Share                         $    0.35 $    0.14 $       0.63 $     0.28

(See Notes to the Condensed Consolidated Financial Statements
                                                                           
    
                                   Potash Corporation of Saskatchewan Inc.
                  Condensed Consolidated Statements of Comprehensive Income
                                         (in millions of US dollars)
                                                     (unaudited)
                                                                         
                                   Three Months
                                       Ended           Six Months Ended
                                       June 30                June 30

(Net of related income
taxes)                            2013      2012        2013        2012
                                                                         

Net Income                    $     643 $     522 $      1,199 $    1,013

Other comprehensive (loss)
income                                                                   
       Items that will not
       be reclassified to
       net income:                                                       
         Net actuarial gain
         (loss) on defined
         benefit plans ((1)
         )                          150      (73)          150       (84)
       Items that may be
       reclassified
       subsequently to net
       income:                                                           
         Available-for-sale
         investments                                                     
           Net fair value
         loss during the
         period ((2))             (656)     (256)        (470)      (134)
           Reclassification
         to income of
         unrealized loss on
         impaired
         investment                   -       341            -        341
         Cash flow hedges                                                
           Net fair value
         loss during the
         period ((3))                 -       (2)            -       (15)
           Reclassification
         to income of net
         loss ((4))                   8        13           19         25
         Other                      (2)       (2)          (2)        (2)

Other Comprehensive (Loss)
Income                            (500)        21        (303)        131

Comprehensive Income          $     143 $     543 $        896 $    1,144

((1)) Net of income taxes of $(87) (2012 - $44) for the three months
ended June 30, 2013 and $(87) (2012 - $48) for the six months ended June
30, 2013.

((2)) Available-for-sale investments are comprised of shares in Israel
Chemicals Ltd. and Sinofert Holdings Limited.

((3)) Cash flow hedges are comprised of natural gas derivative
instruments and are net of income taxes of $NIL (2012 - $2)
for the three months ended June 30, 2013 and $NIL (2012 - $10) for the
six months ended June 30, 2013.

((4)) Net of income taxes of $(4) (2012 - $(8)) for the three months
ended June 30, 2013 and $(10) (2012 - $(16)) for the six months ended
June 30, 2013.

(See Notes to the Condensed Consolidated Financial Statements)          
    
                                                              Potash Corporation of Saskatchewan Inc.
                                                   Condensed Consolidated Statement of Changes in Equity
                                                                       (in millions of US dollars)
                                                                                   (unaudited)
                                                                                                                        
                                                              Accumulated Other Comprehensive Income                        
                                                 Net
                                         unrealized          Net         Net                   Total                    
                                                gain on       loss on    actuarial            Accumulated                   
                                             available-    derivatives      gain                   Other                    
                                                           designated       on


              Share    Contributed     for-sale        as         defined            Comprehensive   Retained   
Total 


                                                                      benefit
                                                        cash flow     plans(


             Capital      Surplus    investments     hedges        (1))      Other        Income     Earnings   
Equity 
                                                                                                                     
Balance -
December 31,
2012           $   1,543 $         299 $       1,539 $       (138) $         - $   (2) $         1,399 $    6,671 $  
9,912 
Net income             -             -             -             -           -       -               -      1,199    
1,199 
Other
comprehensive
(loss) income          -             -         (470)            19         150     (2)           (303)          -    
(303) 
Dividends
declared               -             -             -             -           -       -               -      (544)    
(544) 
Effect of
share-based
compensation                                                                                                             
  including
  issuance of
  common
  shares              29            11             -             -           -       -               -          -       
40 
Shares issued
for dividend                                                                                                             
  reinvestment
  plan                13             -             -             -           -       -               -          -       
13 
Transfer of
net actuarial
gain on                                                                                                                  
  defined
  benefit
  plans                -             -             -             -       (150)       -           (150)        150       
 - 
Balance - June
30, 2013       $   1,585 $         310 $       1,069 $       (119) $         - $   (4) $           946 $    7,476 $ 
10,317 
((1)) Any amounts incurred during a period are
closed out to retained earnings at each period-end.
Therefore, no balance exists at the beginning or
end of period. 
(See Notes to the Condensed Consolidated Financial
Statements)     


                       Potash Corporation of Saskatchewan Inc.
                  Condensed Consolidated Statements of Cash Flow
                                (in millions of US dollars)
                                            (unaudited)
                                                                      
                                 Three Months Ended   Six Months Ended
                                         June 30             June 30
                                 2013        2012       2013     2012
                                                                      

Operating Activities                                                  

Net income                     $   643 $        522 $   1,199 $  1,013
                                                                      

Adjustments to reconcile net
income to cash provided by
operating activities                                                  


Depreciation and 
amortization                    186          157       340      285 
Share-based compensation          5            2        21       18 
Impairment of 
available-for-sale 
investment                        -          341         -      341 
Realized excess tax benefit 
related to share-based 
compensation                      9            1        10        3 
Provision for deferred 
income tax                      151          152       253      204 
Net distributed 
(undistributed) earnings of 
equity-accounted investees       70           57       (7)     (16) 
Pension and other 
post-retirement benefits          9            6      (22)       15 
Asset retirement 
obligations and accrued 
environmental costs             (6)           23       (4)       10 
Other long-term liabilities 
and miscellaneous                40           13        53       26 


    Subtotal of adjustments         464          752       644      886
                                                                      


Changes in non-cash 
operating working capital                                           


    Receivables                     170         (43)        66        6
    Inventories                     (6)           18        41       44


Prepaid expenses and other 
current assets                   12          (2)        13     (16) 
Payables and accrued 
charges                        (81)         (25)      (23)    (339) 
Subtotal of changes in 
non-cash operating working 
capital                          95         (52)        97    (305) 
Cash provided by operating
activities                       1,202        1,222     1,940    1,594 
                                                                   
Investing Activities                                                   
Additions to property, plant
and equipment                    (354)        (483)     (850)    (959) 
Other assets and intangible
assets                             (5)            6      (10)     (14) 
Cash used in investing
activities                       (359)        (477)     (860)    (973) 
                                                                   
Financing Activities                                                   
Repayment of and finance costs
on long-term debt obligations      (4)          (2)     (254)      (2) 
Repayment of short-term debt
obligations                      (580)        (552)     (369)    (384) 
Dividends                        (233)        (118)     (410)    (177) 
Issuance of common shares           19            1        21        3 
Cash used in financing
activities                       (798)        (671)   (1,012)    (560) 
Increase in Cash and Cash
Equivalents                         45           74        68       61 
Cash and Cash Equivalents,
Beginning of Period                585          417       562      430 
Cash and Cash Equivalents, End
of Period                      $   630 $        491 $     630 $    491 


                                                                      

Cash and cash equivalents
comprised of:                                                         
    Cash                        $    40 $         86 $      40 $     86
    Short-term investments          590          405       590      405
                               $   630 $        491 $     630 $    491
                                                                      

Supplemental cash flow
disclosure                                                            
    Interest paid               $    91 $         64 $     100 $    102
    Income taxes paid           $    52 $        176 $     107 $    492

(See Notes to the Condensed Consolidated Financial Statements)


Potash Corporation of Saskatchewan Inc. 
Notes to the Condensed Consolidated Financial Statements
For the Three and Six Months Ended June 30, 2013
(in millions of US dollars except as otherwise noted) 
(unaudited) 
1. Significant Accounting Policies 
With its subsidiaries, Potash Corporation of Saskatchewan Inc. ("PCS") - 
together known as "PotashCorp" or "the company" except to the extent the 
context otherwise requires - forms an integrated fertilizer and related 
industrial and feed products company. The company's accounting policies are in 
accordance with International Financial Reporting Standards, as issued by the 
International Accounting Standards Board ("IFRS"). The accounting policies 
used in preparing these unaudited interim condensed consolidated financial 
statements are consistent with those used in the preparation of the company's 
2012 annual consolidated financial statements except as described in Note 1 of 
the company's 2013 First Quarter Quarterly Report on Form 10-Q. 
These unaudited interim condensed consolidated financial statements include 
the accounts of PCS and its subsidiaries; however, they do not include all 
disclosures normally provided in annual consolidated financial statements and 
should be read in conjunction with the company's 2012 annual consolidated 
financial statements. Further, while the financial figures included in this 
preliminary interim results announcement have been computed in accordance with 
IFRS applicable to interim periods, this announcement does not contain 
sufficient information to constitute an interim financial report as that term 
is defined in International Accounting Standard ("IAS") 34, "Interim Financial 
Reporting". The company expects to publish an interim financial report that 
complies with IAS 34 in its Quarterly Report on Form 10-Q in July 2013. 
In management's opinion, the unaudited interim condensed consolidated 
financial statements include all adjustments necessary to present fairly such 
information. Interim results are not necessarily indicative of the results 
expected for the fiscal year. 
2. Long-Term Debt 
During the first quarter of 2013, the company fully repaid $250 of 4.875 
percent 10-year senior notes at maturity. At June 30, 2013, the company 
classified as current the $500 aggregate principal amount of 5.25 percent 
senior notes due May 15, 2014. 
3. Segment Information 
The company has three reportable operating segments: potash, nitrogen and 
phosphate. Inter-segment sales are made under terms that approximate market 
value. The accounting policies of the segments are the same as those described 
in Note 1. 


                                            Three Months Ended June 30, 2013
                                                              All
                                  Potash  Nitrogen Phosphate Others Consolidated
                                                                                

Sales                             $   975 $    629 $     540 $    - $      2,144

Freight,
transportation
and
distribution                         (68)     (27)      (52)      -        (147)

Net sales -
third party                           907      602       488      -             

Cost of goods
sold                                (294)    (326)     (398)      -      (1,018)

Gross margin                          613      276        90      -          979

Depreciation
and
amortization                         (67)     (42)      (74)    (3)        (186)

Inter-segment
sales                                   -       38         -      -            -

Cash flows for
additions to
property,plant
and equipment                         264       27        57      6          354
                                                                                
                                                                                
                                            Three Months Ended June 30, 2012
                                                              All
                                  Potash  Nitrogen Phosphate Others Consolidated
                                                                                

Sales                             $ 1,185 $    642 $     569 $    - $      2,396

Freight,
transportation
and
distribution                         (55)     (24)      (44)      -        (123)

Net sales -
third party                         1,130      618       525      -             

Cost of goods
sold                                (329)    (316)     (429)      -      (1,074)

Gross margin                          801      302        96      -        1,199

Depreciation
and
amortization                         (56)     (35)      (64)    (2)        (157)

Inter-segment
sales                                   -       50         -      -            -

Cash flows for
additions to
property, plant
and equipment                         338       82        49     14          483
                                                                                
                                                                                
                                              Six Months Ended June 30, 2013
                                                              All
                                  Potash  Nitrogen Phosphate Others Consolidated
                                                                                

Sales                             $ 1,860 $  1,288 $   1,096 $    - $      4,244

Freight,
transportation
and
distribution                        (139)     (52)     (105)      -        (296)

Net sales -
third party                         1,721    1,236       991      -             

Cost of goods
sold                                (604)    (689)     (809)      -      (2,102)

Gross margin                        1,117      547       182      -        1,846

Depreciation
and
amortization                        (108)     (80)     (145)    (7)        (340)

Inter-segment
sales                                   -      109         -      -            -

Cash flows for
additions to
property, plant
and equipment                         613       72       122     43          850
                                                                                
                                                                                
                                              Six Months Ended June 30, 2012
                                                              All
                                  Potash  Nitrogen Phosphate Others Consolidated
                                                                                

Sales                             $ 1,768 $  1,192 $   1,182 $    - $      4,142

Freight,
transportation
and
distribution                         (89)     (53)      (85)      -        (227)

Net sales -
third party                         1,679    1,139     1,097      -             

Cost of goods
sold                                (551)    (618)     (849)      -      (2,018)

Gross margin                        1,128      521       248      -        1,897

Depreciation
and
amortization                         (86)     (70)     (124)    (5)        (285)

Inter-segment
sales                                   -       92         -      -            -

Cash flows for
additions to
property,plant
and equipment                         681      155        99     24          959


4. Share-Based Compensation

On May 16, 2013, the company's shareholders approved the 2013 Performance 
Option Plan under which the company may, after February 19, 2013 and before 
January 1, 2014, grant options to acquire up to 3,000,000 common shares. Under 
the plan, the exercise price shall not be less than the quoted market closing 
price of the company's common shares on the last trading day immediately 
preceding the date of the grant, and an option's maximum term is 10 years. In 
general, options will vest, if at all, according to a schedule based on the 
three-year average excess of the company's consolidated cash flow return on 
investment over weighted average cost of capital. As of June 30, 2013, options 
to purchase a total of 1,952,000 common shares had been granted under the 
plan. The weighted average fair value of options granted was $15.13 per share, 
estimated as of the date of grant using the Black-Scholes-Merton 
option-pricing model with the following weighted average assumptions:

Exercise
price per
option                                                                                                           $ 
43.80

Expected
annual
dividend
per share                                                                                                        $  
1.40

Expected
volatility                                                                                                           
50%

Risk-free
interest
rate                                                                                                               
1.06%

Expected
life of                                                                                                              
5.5
options                                                                                                            
years

5.Income Taxes

A separate estimated average annual effective tax rate is determined for each 
taxing jurisdiction and applied individually to the interim period pre-tax 
income of each jurisdiction.
                                                      Three    Six Months
                                                     Months         Ended
                                                      Ended
                                                   June 30       June 30
                                                2013   2012   2013   2012

Income tax                                       245 $  304 $  471 $  464
expense                                       $

Actual                                           25%    26%    26%    25%
effective
tax rate on
ordinary
earnings                                     

Actual                                           28%    37%    28%    31%
effective
tax rate
including
discrete
items                                        

Discrete                                          18 $    5 $   37 $    3
tax                                           $
adjustments
that
impacted
the tax
rate                                         

Significant items to note include the following:

• In the first six months of 2013, a tax expense of $16 ($1 in the second 
quarter) was recorded to adjust the 2012 income tax provision.

• In second-quarter 2013, a deferred tax expense of $11 was recorded as a 
result of a Canadian income tax rate increase.

• In second-quarter 2012, the impairment of the company's available-for-sale 
investment in Sinofert Holdings Limited was not deductible for tax purposes.

6. Net Income Per Share

Net income per share was calculated on the following weighted average number 
of shares:
                                                                                             Three Months Ended         
    Six Months Ended
                                                                                                     June 30            
           June 30


                                                                                         2013          2012          
2013          2012 
Basic                                                                                   865,991,000   858,988,000     
865,526,000   858,888,000 
Diluted                                                                                 877,141,000   875,507,000     
876,930,000   875,813,000 
Diluted net income per share was calculated based on the weighted average 
number of shares issued and outstanding during the period, incorporating the 
following adjustments. The denominator was: (1) increased by the total of 
the additional common shares that would have been issued assuming the exercise 
of all stock options with exercise prices at or below the average market price 
for the period; and (2) decreased by the number of shares that the company 
could have repurchased if it had used the assumed proceeds from the exercise 
of stock options to repurchase them on the open market at the average share 
price for the period. For performance-based stock option plans, the number of 
contingently issuable common shares included in the calculation was based on 
the number of shares, if any, that would be issuable if the end of the 
reporting period were the end of the performance period and the effect were 
dilutive. 


                       Potash Corporation of Saskatchewan Inc.
                                   Selected Financial Data
                                            (unaudited)
                                                                      
                                                                      
                               Three Months Ended     Six Months Ended
                                       June 30              June 30
                               2013        2012       2013       2012
                                                                      

Potash Sales (tonnes -
thousands)                                                            
     Manufactured Product                                             
       North America             834          651     1,628      1,051
       Offshore                1,711        1,955     3,143      2,804
     Manufactured Product      2,545        2,606     4,771      3,855
                                                                      

Potash Net Sales                                                      
     (US $ millions)                                                  
       Sales                 $   975 $      1,185   $ 1,860 $    1,768
       Freight,
       transportation and
       distribution             (68)         (55)     (139)       (89)
       Net Sales             $   907 $      1,130   $ 1,721 $    1,679
                                                                      
     Manufactured Product                                             
       North America         $   352 $        326   $   683 $      525
       Offshore                  554          803     1,031      1,147
     Other miscellaneous and
     purchased product             1            1         7          7
     Net Sales               $   907 $      1,130   $ 1,721 $    1,679
                                                                      

Manufactured Product                                                  
     Average Realized Sales
     Price per MT                                                     
       North America         $   421 $        502   $   419 $      500
       Offshore              $   324 $        411   $   328 $      409
       Average               $   356 $        433   $   359 $      434
     Cost of Goods Sold per
     MT                      $ (114) $      (125)   $ (124) $    (142)
     Gross Margin per MT     $   242 $        308   $   235 $      292
                                                             
                                                             
                                                             
                                                       
                       Potash Corporation of Saskatchewan Inc.
                                   Selected Financial Data
                                            (unaudited)
                                                                      
                                                                      
                               Three Months Ended     Six Months Ended
                                       June 30              June 30
                               2013        2012       2013       2012
                                                                      

Average Natural Gas Cost in
Production per MMBtu         $  5.67 $       5.31   $  5.88 $     5.03

Nitrogen Sales (tonnes -
thousands)                                                            
     Manufactured Product                                             
       Ammonia                   516          517     1,029      1,033
       Urea                      277          295       582        629
       Solutions/Nitric
       acid/Ammonium nitrate     656          493     1,278        933
     Manufactured Product      1,449        1,305     2,889      2,595
                                                                      
     Fertilizer sales tonnes     455          432       819        807
     Industrial/Feed sales
     tonnes                      994          873     2,070      1,788
     Manufactured Product      1,449        1,305     2,889      2,595
                                                                      

Nitrogen Net Sales                                                    
     (US $ millions)                                                  
       Sales                 $   629 $        642   $ 1,288 $    1,192
       Freight,
       transportation and
       distribution             (27)         (24)      (52)       (53)
       Net Sales             $   602 $        618   $ 1,236 $    1,139
                                                                      
     Manufactured Product                                             
       Ammonia               $   299 $        265   $   610 $      495
       Urea                      120          181       265        335
       Solutions/Nitric
       acid/Ammonium nitrate     170          124       331        234
     Other miscellaneous and
     purchased product            13           48        30         75
     Net Sales               $   602 $        618   $ 1,236 $    1,139
                                                                      
     Fertilizer net sales    $   207 $        233   $   361 $      388
     Industrial/Feed net
     sales                       382          337       845        676
     Other miscellaneous and
     purchased product            13           48        30         75
     Net Sales               $   602 $        618   $ 1,236 $    1,139
                                                                      

Manufactured Product                                                  
     Average Realized Sales
     Price per MT                                                     
       Ammonia               $   580 $        512   $   593 $      480
       Urea                  $   432 $        613   $   455 $      533
       Solutions/Nitric
       acid/Ammonium nitrate $   259 $        251   $   259 $      250
       Average               $   406 $        436   $   417 $      410
       Fertilizer average
       price per MT          $   456 $        541   $   441 $      481
       Industrial/Feed
       average price per MT  $   384 $        385   $   408 $      378
       Average               $   406 $        436   $   417 $      410
     Cost of Goods Sold per
     MT                      $ (219) $      (222)   $ (230) $    (223)
     Gross Margin per MT     $   187 $        214   $   187 $      187
                                                             
                                                             
                                                             
                                                       
                       Potash Corporation of Saskatchewan Inc.
                                   Selected Financial Data
                                            (unaudited)
         
                                  Three Months Ended     Six Months Ended
                                       June 30              June 30
                               2013        2012       2013       2012
                                                                      

Phosphate Sales (tonnes -
thousands)                                                            
     Manufactured Product                                             
       Fertilizer                635          619     1,225      1,256
       Feed and Industrial       295          317       608        610
     Manufactured Product        930          936     1,833      1,866
                                                                      

Phosphate Net Sales                                                   
     (US $ millions)                                                  
       Sales                 $   540 $        569   $ 1,096 $    1,182
       Freight,
       transportation and
       distribution             (52)         (44)     (105)       (85)
       Net Sales             $   488 $        525   $   991 $    1,097
                                                                      
     Manufactured Product                                             
       Fertilizer            $   288 $        308   $   585 $      671
       Feed and Industrial       193          208       392        409
     Other miscellaneous and
     purchased product             7            9        14         17
     Net Sales               $   488 $        525   $   991 $    1,097
                                                                      

Manufactured Product                                                  
     Average Realized Sales
     Price per MT                                                     
       Fertilizer            $   454 $        498   $   478 $      534
       Feed and Industrial   $   654 $        656   $   644 $      670
       Average               $   517 $        552   $   533 $      579
     Cost of Goods Sold per
     MT                      $ (422) $      (454)   $ (437) $    (450)
     Gross Margin per MT     $    95 $         98   $    96 $      129
                                                               Potash Corporation of Saskatchewan Inc.
                                                                      Selected Additional Data
                                                                                (unaudited)
                                                                                                                      

Exchange Rate                                                                                
(Cdn$/US$)                                                                                                            
                                                                                       2013                       2012
                                                                                                                      

December 31                                                                                                     0.9949

June 30                                                                              1.0512                     1.0191

Second-quarter                                                                               
average
conversion
rate                                                                                 1.0211                     0.9988
                                                                                                                      
                                      Three Months Ended                                     Six Months Ended
                                              June 30                                               June 30
                              2013                     2012                       2013                       2012
                                                                                                                      

Production                                                                                                            

Potash                                                                                       
production
(KCl Tonnes -
thousands)                        2,677                    2,807                      4,702                      4,382

Potash                                                                                       
shutdown weeks
((1))                                 4                       11                         20                         40

Nitrogen                                                                                     
production (N
Tonnes -
thousands)                          726                      697                      1,449                      1,378

Phosphate                                                                                    
production (P
(2)O(5 )Tonnes
- thousands)                        521                      500                      1,020                        986

Phosphate P                                                                                  
(2)O(5)
operating rate
( )                                 88%                      84%                        86%                        83%
                                                                                                                      

Shareholders                                                                                                          

PotashCorp's                                                                                 
shareholder
return                              -2%                      -4%                        -5%                         7%
                                                                                                                      

Customers                                                                                                             

Product tonnes                                                                               
involved in
customer
complaints
(thousands)                           4                       32                         12                         47
                                                                                                                      

Community                                                                                                             

Taxes and                                                                                    
royalties ($
millions)(
(2))                                201                      262                        401                        350
                                                                                                                      

Employees                                                                                                             

Annualized                                                                                   
turnover rate
(excluding
retirements)                         4%                       4%                         4%                         4%
                                                                                                                      

Safety                                                                                                                

Total site                                                                                   
recordable
injury rate
(per 200,000
work hours)(
(3))                               1.10                     1.14                       1.00                       1.17
                                                                                                                      

Environment                                                                                                           

Environmental                                                                                
incidents(
(4))                                  3                        5                         10                         12
                                                                                                                      
                                                                                                                      
                                                                                   June 30,               December 31,

As at                                                                               2013                     2012
                                                                                                                      

Number of                                                                                    
employees                                                                                                             
     Potash                                                                           2,861                      2,759
     Nitrogen                                                                           781                        788
     Phosphate                                                                        1,785                      1,792
     Other                                                                              439                        440
     Total                                                                            5,866                      5,779
                                                                                                                      

(1) Represents weeks of full production shutdown; excludes the impact
of any periods of reduced operating rates and planned routine annual
maintenance shutdowns.

(2) Taxes and royalties = current income tax expense - investment tax
credits - realized excess tax benefit related to share-based
compensation + potash production tax + resource surcharge + royalties +
municipal taxes + other miscellaneous taxes (calculated on an accrual
basis). 

(3) As defined in our 2012 Annual Integrated Report. Total site
includes PotashCorp employees, contractors and others on site.

(4) Total of reportable quantity releases, permit excursions and
provincial reportable spills (as defined in our 2012 Annual Integrated
Report).



Potash Corporation of Saskatchewan Inc.
Selected Non-IFRS Financial Measures and Reconciliations
(in millions of US dollars except percentage amounts) 
(unaudited)

The following information is included for convenience only. Generally, a 
non-IFRS financial measure is a numerical measure of a company's performance, 
financial position or cash flows that either excludes or includes amounts that 
are not normally excluded or included in the most directly comparable measure 
calculated and presented in accordance with IFRS. EBITDA, adjusted EBITDA, 
adjusted EBITDA margin, cash flow prior to working capital changes and free 
cash flow are not measures of financial performance (nor do they have 
standardized meanings) under IFRS. In evaluating these measures, investors 
should consider that the methodology applied in calculating such measures may 
differ among companies and analysts.

The company uses both IFRS and certain non-IFRS measures to assess 
performance. Management believes these non-IFRS measures provide useful 
supplemental information to investors in order that they may evaluate 
PotashCorp's financial performance using the same measures as management. 
Management believes that, as a result, the investor is afforded greater 
transparency in assessing the financial performance of the company. These 
non-IFRS financial measures should not be considered as a substitute for, nor 
superior to, measures of financial performance prepared in accordance with 
IFRS.

A. EBITDA, ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN

Set forth below is a reconciliation of "EBITDA" and "adjusted EBITDA" to net 
income and "adjusted EBITDA margin" to net income as a percentage of sales, 
the most directly comparable financial measures calculated and presented in 
accordance with IFRS.
                               Three Months Ended     Six Months Ended
                                       June 30              June 30
                               2013        2012       2013       2012

Net income                   $   643 $        522   $ 1,199 $    1,013

Finance costs                     39           31        74         65

Income taxes                     245          304       471        464

Depreciation and
amortization                     186          157       340        285

EBITDA                       $ 1,113 $      1,014   $ 2,084 $    1,827

Impairment of
available-for-sale
investment                         -          341         -        341

Adjusted EBITDA              $ 1,113 $      1,355   $ 2,084 $    2,168

EBITDA is calculated as earnings before finance costs, income taxes and 
depreciation and amortization. Adjusted EBITDA is calculated as earnings 
before finance costs, income taxes, depreciation and amortization, certain 
gains and losses on disposal of assets and certain impairment charges. 
PotashCorp uses EBITDA and adjusted EBITDA as supplemental financial measures 
of its operational performance. Management believes EBITDA and adjusted EBITDA 
to be important measures as they exclude the effects of items which primarily 
reflect the impact of long-term investment and financing decisions, rather 
than the performance of the company's day-to-day operations. As compared to 
net income according to IFRS, these measures are limited in that they do not 
reflect the periodic costs of certain capitalized tangible and intangible 
assets used in generating revenues. Management evaluates such items through 
other financial measures such as capital expenditures and cash flow provided 
by operating activities. The company believes that these measurements are 
useful to measure a company's ability to service debt and to meet other 
payment obligations or as a valuation measurement.
                                Three Months Ended     Six Months Ended
                                        June 30              June 30
                                2013        2012       2013       2012

Sales                         $ 2,144 $      2,396   $ 4,244 $    4,142

Freight,
transportation
and
distribution                    (147)        (123)     (296)      (227)

Net sales                     $ 1,997 $      2,273   $ 3,948 $    3,915
                                                                       

Net income as a                   30%          22%       28%        24%
percentage of
sales                        

Adjusted EBITDA                   56%          60%       53%        55%
margin                         

Adjusted EBITDA margin is calculated as adjusted EBITDA divided by net sales 
(sales less freight, transportation and distribution). Management believes 
comparing the company's operations (excluding the impact of long-term 
investment decisions) to net sales earned (net of costs to deliver product) is 
an important indicator of efficiency. In addition to the limitations given 
above in using adjusted EBITDA as compared to net income, adjusted EBITDA 
margin as compared to net income as a percentage of sales is also limited in 
that freight, transportation and distribution costs are incurred and valued 
independently of sales; adjusted EBITDA also includes earnings from equity 
investees whose sales are not included in consolidated sales. Management 
evaluates these items individually on the consolidated statements of income.

Potash Corporation of Saskatchewan Inc.
Selected Non-IFRS Financial Measures and Reconciliations 
(in millions of US dollars) 
(unaudited)

B. CASH FLOW

Set forth below is a reconciliation of "cash flow prior to working capital 
changes" and "free cash flow" to cash provided by operating activities, the 
most directly comparable financial measure calculated and presented in 
accordance with IFRS.
                                                                       
                                Three Months Ended     Six Months Ended
                                        June 30              June 30
                                2013        2012       2013       2012

Cash flow prior to working
capital changes( )            $ 1,107 $      1,274   $ 1,843 $    1,899

Changes in non-cash operating
working capital                                                        
    Receivables                    170         (43)        66          6
    Inventories                    (6)           18        41         44


Prepaid expenses and other 
current assets                  12          (2)        13       (16) 
Payables and accrued 
charges                       (81)         (25)      (23)      (339) 
Changes in non-cash operating
working capital                    95         (52)        97      (305) 
Cash provided by operating
activities                    $ 1,202 $      1,222   $ 1,940 $    1,594 
Additions to property, plant
and equipment                   (354)        (483)     (850)      (959) 
Other assets and intangible
assets                            (5)            6      (10)       (14) 
Changes in non-cash operating
working capital                  (95)           52      (97)        305 
Free cash flow                $   748 $        797   $   983 $      926 
The company uses cash flow prior to working capital changes as a supplemental 
financial measure in its evaluation of liquidity. Management believes that 
adjusting principally for the swings in non-cash working capital items due to 
seasonality or other timing issues assists management in making long-term 
liquidity assessments. The company also believes that this measurement is 
useful as a measure of liquidity or as a valuation measurement. 
The company uses free cash flow as a supplemental financial measure in its 
evaluation of liquidity and financial strength. Management believes that 
adjusting principally for the swings in non-cash operating working capital 
items due to seasonality or other timing issues, additions to property, plant 
and equipment, and changes to other assets assists management in the long-term 
assessment of liquidity and financial strength. The company also believes 
that this measurement is useful as an indicator of its ability to service its 
debt, meet other payment obligations and make strategic investments. Readers 
should be aware that free cash flow does not represent residual cash flow 
available for discretionary expenditures. 
Investors Denita Stann Vice President, Investor and Public Relations Phone: 
(306) 933-8521 Fax: (306) 933-8844 Email:ir@potashcorp.com  Media Bill 
Johnson Senior Director, Public Affairs Phone: (306) 933-8849 Fax: (306) 
933-8844 Email:pr@potashcorp.com   
Website:www.potashcorp.com 
SOURCE: Potash Corporation of Saskatchewan Inc. 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/July2013/25/c9007.html 
CO: Potash Corporation of Saskatchewan Inc.
ST: Saskatchewan
NI: MNG CHM ERN CONF FIN  
-0- Jul/25/2013 10:00 GMT
 
 
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