SQM Falls in Chile After Potash Reduces Profit Estimates
Soc. Quimica & Minera de Chile SA, the country’s largest fertilizer producer, headed for the longest losing streak since 2011 after its largest North American peer reduced profit estimates on lower potash sales.
SQM fell for an eighth day, dropping 2.2 percent to 13,700 pesos at 1:09 p.m. in Santiago, the longest run of losses since December 2011. Chile’s benchmark index advanced 0.2 percent.
Potash Corp of Saskatchewan Inc. lowered its profit forecast today after clients delayed purchases on expectations that prices will continue to fall. The company, which is also the second-largest shareholder in SQM, said third-quarter earnings will probably be about 41 cents a share compared with a July projection of 45 to 60 cents.
“This is making people believe that profits will be even lower than what they expected and is pressuring the stock,” Felipe Ruiz, an analyst at Banco de Credito & Inversiones, said by telephone from Santiago.
The world potash market was shaken at the end of July after OAO Uralkali, the biggest producer, exited a joint trading venture with Belarus supplier Belaruskali that had propped up prices of the commodity.
Analysts expect SQM to report profit of 47 cents a share, the average of three estimates compiled by Bloomberg.
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