Potash Corp., based in Saskatchewan announced on Thursday that it will cut production and lower projections of annual income and sales, as volatile currencies and economic pressure has had a negative impact on demand for potash, a nutrient for crops.

The largest company in the world in production of fertilizers reported 11% decrease in quarterly earnings, also suffered from weak prices for nitrogen and increased production costs of phosphate.

Shares Of Potash Corp. fell by 2% in new York and 3% in Toronto and dropped by about one third this year.

The company cut its annual profit forecast to $1.55-1,65 per share from $1,75-1,95. Analysts on average had forecast 1,74$ per share.

The company has announced that the company will accelerate the planned closure of its potash mine in Penobsquis new Brunswick and temporarily shuts down production in December at three mines in Saskatchewan.

The potash production in the fourth quarter will fall by nearly 500,000 tonnes, according to the manual, adding that it plans to lay off employees.

It is unlikely that Potash Corp. will reduce production in 2016, but it depends on prices, the company said.

The Results Potash Corp. and the revised forecast shows a sharp decline in the potash market, according to analysts Alta Corp.

Potash prices fell by 20% compared with last year in the "corn belt" of the United States, according to Mosaic Co.

The demand has been reduced a new tax China, which made potash more expensive in this country, as well as a strong US dollar and dry conditions for the harvest in India.

Potash Corp. plans to sell to 9.0-9.2 million tonnes of potash this year. The company, which also produces phosphate and nitrogen fertilizers, has previously predicted sales on the level of 9.3 to 9.6 million tons.

The average sale price of potash Potash Corp. fell by 11% up to$ 250 per ton in the third quarter.

The company reported that net income in the third quarter fell to $282 million, or 34 cents per share, from $317 million, or 38 cents per share.

Revenue dropped 6.8% to $1.53 billion.

Analysts had forecast a profit of 37 cents per share on revenue of $1.45 billion.

Source: Thomson Reuters