Canada's Agrium Q3 net earnings fall 56% to $129m on charges

07 November 2012 13:36  [Source: ICIS news]

TORONTO (ICIS)--Agrium’s third-quarter net earnings fell 56% year on year to $129m (€101m), mainly because of a non-recurring $66m charge for environmental liabilities and a $53m share-based payment expense, the Canadian fertilizer major said on Wednesday.

But results were also impacted by downtime at Agrium’s potash operations and a weaker potash market because of uncertainties from ongoing negotiations with India and China, the company said.

Agrium’s gross profit for the three months ended 30 September fell by 10% year on year to $798m, on sales of $2.96bn, down 6%.

“Agrium’s third quarter results demonstrated our competitive strengths in nitrogen and the ability of our retail business to deliver solid earnings, even given the early spring season and after experiencing one of the worst droughts in US history,” CEO Mike Wilson said.

“Gross profit from our nitrogen business was the highest for a third quarter in our history, while retail EBITDA [earnings before tax, interest, depreciation and amortisation] nearly matched the outstanding results reported in the third quarter of 2011,” Wilson said.

“Looking ahead, we are in an excellent position to continue to benefit from the robust agricultural fundamentals, as growers strive to make the most of the attractive crop price environment by optimising their use of Agrium’s line of crop inputs and services,” he added.

($1 = €0.78)

By: Stefan Baumgarten
+1 713 525 2653

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