Agrium more than doubles Q2 net to $636m

06 August 2008 13:48  [Source: ICIS news]

TORONTO (ICIS news)--Agrium posted a record second-quarter net profit of $636m (€413m), up from $229m a year earlier, as sales nearly doubled on strong demand, the Canada-based fertilizer major said on Wednesday.

 

Sales for the three months ended 30 June rose to $3.9bn, from $2.1bn in the 2007 second quarter.

 

Gross profit was $1.26bn, up from $572m in the 2007 second quarter while earnings before interest and tax (EBIT) rose to $972m, from $363m.

 

Agrium credited continued strong demand for fertilizers and a contribution from its acquisition of US fertilizer retailer UAP.

 

“This quarter's results are a reflection both of the quality of our assets and the benefit of diversifying throughout the agricultural value chain," said Agrium CEO Mike Wilson.

 

As for Agrium’s outlook, Wilson said: “We anticipate continued strong demand for our products and services that help farmers around the world improve both crop quality and yield.”

 

“Specifically, the outlook for the second half of the year remains solid with corn, wheat and soybean prices at two to three times historic levels.”

 

“This should support crop input demand and continued strength in the nutrient markets benefiting our retail, wholesale and advanced technologies businesses."

 

Agrium also said it expected to provide an update on its stalled $1.2bn EAgrium joint venture project in Egypt in early September.

 

Agrium was still in discussions with the Egyptian government pertaining to the government's decision to force the relocation of the EAgrium nitrogen project, it said.

 

The options proposed by the government included a merger of EAgrium with an existing fertilizer company, a relocation and/or a buy-out of EAgrium's shareholders, it added.

 

However, according to Egyptian market reports on Tuesday, the Egyptian government decided that EAgrium would be taken over by the state-owned Misr Oil Processing Company (MOPCO) and relocated.

 

($1 = €0.65)

 

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