Potash Shoots Down 'Green Shoots'

Potash(POT Quote), the Canadian fertilizer giant, said weaker sales of, well, potash, has forced it to cut radically its earnings forecast for the second quarter.

Profit will likely come in at 70 cents a share as opposed to the $1.10 to $1.50 the company had been telling investors to expect.

In a statement released after Thursday's market close, Potash blamed the weaker sales on the recession, which caused order cancellations from farmers around the world, and a consequent drop in prices.

Early in Friday's session, Potash shares were moving at $90.42, down $3.08, or 3%, on heavy volume. The stock had rallied from its March lows on the notion that the global economy was showing signs of "green shoots," which the news out of Potash Thursday would seem to belie.

Other fertilizer makers saw their shares move lower Friday. Agrium(AGU Quote) stock was down 83 cents to $40.56; Mosaic(MOS Quote) slipped 30 cents to $43.46, and CF Industries(CF Quote) shed 74 cents to $75.44.