Agrium's Q3 net profit down 93% year on year on weak sales

04 November 2009 13:43  [Source: ICIS news]

LONDON (ICIS news)--Agrium’s third quarter net earnings fell 93% to $26m (€17.6m), from $367m in the same period last year primarily due lower sales, the Canadian fertilizer major said on Wednesday.

Net sales dropped 41% to $1.84bn, for the three months ending 30 September compared to same quarter in 2008.

“The third quarter of 2009 held a number of challenges for the entire agriculture and fertilizer sector,” said Mike Wilson, Agrium President and CEO.

Depressed summer corn prices contributed to lower retail sales and the application of crop protection products, Wilson said.

Continued uncertainty over global potash pricing and slow corn and soybean crop harvest progress also contributed to the weaker sales performance, the CEO said 

Looking ahead, Wilson was upbeat about future performance and said that corn prices had recovered from summer lows and the growth for food products was set to remain strong.

“Despite these short term challenges, Agrium sees a significant recovery in demand across virtually all crop inputs starting early 2010, particularly for the retail and potash businesses,” he said.

Agrium also said that positive global economic indicators had contributed to higher commodity prices over the past couple of months, which along with the delayed US harvest had led to a recent increase in grain and oilseed prices. The company added that recent demand from Pakistan and India had provided support to nitrogen markets.

On Tuesday an investment analyst said that Agrium could emerge the eventual victor in the takeover battle being waged for nitrogen fertilizer maker Terra between it and rivals CF Industries.

($1 = €0.68)

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By: Franco Capaldo
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