Agrium beats upgraded target to set profits record

images (3) Agrium, which in June raised its second-quarter earnings guidance, revealed it had beaten even the upgraded figure, thanks to improved performances across its fertilizer-to-farm-retail empire.

The Canada-based group reported earnings up 39% to a record $718m for the April-to-June period, on revenues up 40% at $6.20bn.

Per share, earnings came in at $4.54, beating market expectations of a $4.19-a-share result, as well as the upgraded $4.10-4.40 a share that Agrium guided to in June.

"Agrium’s competitive advantages and strong global position across our business units and products allowed us to fully capitalise on the strengthening agricultural fundamentals," Mike Wilson, the Agrium chief executive, said.

Fertilizer boost

In retail, operating profits rose 34% to $486m, boosted by "robust demand for all crop inputs and related services globally", as well as the acquisition of the Australia-based Landmark business.

Sales of fertilizers were particularly strong, soaring 50% to $2.1bn, with the addition of Landmark making up for the impact of rain on slowing North American takings.

At Agrium’s wholesale division, operating profits doubled to $569m, an "improvement due to higher realised crop nutrient prices and margins", notable in phosphate, where the gross margin soared to $320 a tonne from $39 a tonne, spurred by savings enabled by higher production volumes.

Nitrogen margins doubled to $226 a tonne, with those in potash rising by nearly 50% to $304 a tonne.

Fall rise?

And the group forecast further strength to come, with North American fertilizer use to be boosted by growers’ desire – in the drive to raise yields and cash in on high crop prices to catch up on applications prevented by the wet spring.

"The combination of all these factors is expected to bode well for crop input demand this fall," Mr Wilson said.

Meanwhile, the phosphate market would be boosted by "significant purchases" expected from India, while expectations of a slide in Chinese urea exports have lent nitrogen a "positive" outlook.

Agrium shares stood 0.9% higher at Can$82.47 in morning trade in Toronto.

http://www.agrimoney.com/news/agrium-beats-upgraded-target-to-set-profits-record–3434.html


Deprecated: strpos(): Passing null to parameter #1 ($haystack) of type string is deprecated in /home/agriviek8Qv/agriviet.net/public_html/wp-includes/comment-template.php on line 2522

Leave a Comment