Potash Corp announced earnings of $1.02 for the first quarter in last nights earning conference call. This is down from $1.72 in last years first quarter.

The $1.02 mark includes a 55 cent tax adjustment, making real earnings 47 cents per share. The street was expecting 85.

Potash Corp cut their 2009 full year earnings to $7 to $8 per share, down from earlier estimates of $10 to $12 per share.

CEO Bill Doyle said the following during the conference call portion of the report:

“While buyers have delayed purchases since the fourth quarter of 2008, the need for potash and other fertilizers cannot be denied,”

“This level of reduction has never been seen before, no one can state precisely what the impact will be on the world’s food supply, immediately or over the longer term. But we know with scientific certainty that nutrient underapplication damages both crop yields and quality.”

At this point its difficult to tell if this is actually the case or if Doyle is towing the company line. This wouldn’t be the first time that we’ve heard this type of statement from Doyle when it comes to explaining slowing company earnings. At some point the table will need to turn and farmers will need to purchase Potash if the company wishes to meet even their downgraded 2009 earnings estimate.

The street may be in Doyle’s corner. For the day (Friday 24th) Potash shares are up approximately 6% to $84.50.

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