04/26/2012 03:17 EDT | Updated 06/26/2012 05:12 EDT

Saskatchewan says potash revenue on track despite lower profit at PotashCorp

REGINA - The Saskatchewan government says potash revenue projections are on target despite disappointing first-quarter results from Potash Corporation.

PotashCorp's (TSX:POT) first-quarter net income fell to US$491 million from US$732 million in the same period last year.

Energy and Resources Minister Bill Boyd says earnings are down, but there are still three quarters remaining.

Boyd says PotashCorp has indicated that sales are picking up and facilities are running at capacity, so it expects to meet projections going forward.

Earnings from the Saskatoon-based company are important because the province collects royalties from production.

The Saskatchewan government said in its budget that demand had eased in recent months and forecast potash revenue of $705 million this year.