By Michael Oneal | Potash Corp. of Saskatchewan, which has a big U.S. headquarters in
Northbrook, roared out of the box in early Friday trading after the
company sharply raised its first-quarter forecast on Thursday, citing a
strong rebound in demand for potash, a key agricultural fertilizer.

Shares were up $8.48 to $125.41 in the opening minutes, just shy of the
company’s 52-week high. They closed Thursday at $116.93 apiece.

After repeatedly cutting its outlook in 2009, Potash Corp. was similarly cautious in the first-quarter guidance it issued to investors in January. Demand for potash had been falling as the credit crisis and skidding grain prices had crimped demand among farmers, the company said. Potash Corp. stock followed suit, dropping as much as 20 percent in January from $124.77 to $99.35.

But on Thursday, Potash said demand was improving as dealers restock inventories and farmers look to replenish the nutrients in their fields as the spring planting season approaches. The company said Thursday that it now expects first-quarter earnings to be between $1.30 and $1.50 per share, well above its prior forecast of 70 cents to $1 per share.

“The upward revision reflects a sharp rebound in potash demand that is expected to drive a record quarter for North American sales volumes and strong offshore shipments, as well as higher-than-expected margins in nitrogen and phosphate,” the company said in a statement.