Canadian fertilizer company Potash Corp. of Saskatchewan Inc. on Thursday raised its full-year earnings guidance to reflect the strong growth in fertilizer demand worldwide, even as supplies have remain tight.

The news sent shares to a year high earlier in the session.

Potash boosted its outlook to a range of $7.50 to $8.50 per share, up from an earlier estimate of $6.25 to $7.25 per share. Second-quarter profit is forecast between $2 and $2.50 per share.

Analysts polled by Thomson Financial expect the company to earn $7.98 per share in 2007 and $2.24 per share in the second quarter.

The company expects world demand for potash to grow between 12 percent and 16 percent this year due to an expected increase in volumes sold to Brazil, China and India. Strong nitrogen fertilizer demand is also forecast to continue, as world supplies remained strained.

After eight years of lagging sales, phosphate demand as recovered strongly, Potash said, and prices have increased.

Potash shares rose $4.05, up 2.2 percent, to $191.94, after hitting a year high of $193.79 earlier Thursday on the New York Stock Exchange. The stock had traded between $78.84 and $191.46 over the past 52 weeks. – Associated Press