Agrium Inc. first-quarter earnings plummet

CALGARY — Fertilizer producer and retailer Agrium Inc. (TSX:AGU) has reported a 92 per cent drop in profits for the first three months of the year as the North American farmers it serves dealt with a nastier than usual winter.

CALGARY — Fertilizer producer and retailer Agrium Inc. (TSX:AGU) has reported a 92 per cent drop in profits for the first three months of the year as the North American farmers it serves dealt with a nastier than usual winter.

The Calgary-based company said consolidated net earnings from continuing operations were $12 million, or eight cents per share, compared with $146 million, or 98 cents per share, a year earlier.

“Agrium’s first quarter is traditionally our seasonally lowest earnings quarter and this was exacerbated this year by the record cold winter across North America,” CEO Chuck Magro said in a release.

“However, farmer sentiment is positive this spring and we are now seeing good demand for crop input products and services. Agrium achieved a record $788-million in operating cash flow this quarter despite the lower net earnings as we continue to focus on reducing working capital needs.”

Agrium’s outlook for the second quarter is much brighter, calling for between $3.85 and $4.35 in diluted earnings per share from continuing operations.

Sales during the first quarter dipped modestly to $3.08 billion from $3.16 billion a year earlier.

Expenses rose eight per cent to $503 million from $466 million.

The results included a $31-million share-based payment expense, which was offset by a gain of $32 million on natural gas hedging.

Major crop prices have been strengthening, thanks to strong demand and increased uncertainty over supply.

That’s good news for the fertilizers and other farm products Agrium provides, the company said.

But the start to the spring planting season in North America is later than normal because of cold, wet weather.

The inability to get a record Western Canadian grain crop to market by rail has also been a challenge.

“The large North American crop in 2013, particularly in Canada, combined with the cold winter, have challenged rail and port transportation logistics so far in 2014,” Agrium said.

“In some cases, the delayed start has allowed the crop nutrient supply chain more time for product to move to market. However, constrained logistical capacity is still expected to contribute to tight supply and demand balances within regional markets this season.”

Just Posted

BILD says not the time for higher permit fees in Red Deer

Construction industry is hard hit by slow economy

Bighorn Country telephone town hall for Red Deer area set for Wednesday

Residents can phone in from 6:30-7:30 p.m. to hear about the project or ask questions

Central Alberta real estate sales follow a familiar pattern

2018 house sale numbers mirror 2017 in central Alberta

Red Deer hospital settles dispute, welcomes neonatal nurse

A dispute over nursing levels at Red Deer Regional Hospital Centre’s emergency… Continue reading

Drumheller-Stettler MLA quits UCP

Rick Strankman to sit as Independent

Lucic, Kassian each score twice to power Oilers in 7-2 win over Sabres

EDMONTON — Milan Lucic and Zack Kassian each scored a pair of… Continue reading

Big Valley family gives back to community

Donates $24,560 to Stettler Health Foundation and Edmonton Stollery Children’s Hospital

Giordano notches three points to lead Flames in 7-1 blowout of Coyotes

CALGARY — Flames captain Mark Giordano celebrated his 800th NHL game in… Continue reading

All-female team out to prove women racers aren’t a gimmick

DAYTONA BEACH, Fla. — Every racing series in the world is full… Continue reading

‘Game of Thrones’ final season to debut on April 14

NEW YORK — “Game of Thrones” fans, get ready. HBO announced Sunday… Continue reading

Kylie Jenner loses record for most-liked Instagram post

NEW YORK — Kylie Jenner’s birth announcement is no longer the most-liked… Continue reading

Study shows black bears need a variety of salmon species to be healthy

VANCOUVER — Black bears need access to different species of salmon rather… Continue reading

Trade war’s wounded: Companies improvise to dodge cost hikes

WASHINGTON — In Rochester, New York, a maker of furnaces for semiconductor… Continue reading

Most Read