💙 🔷 Not impressed by Big Tech in Q3? Explore these Blue Chip Bargains insteadUnlock them all

UPDATE 1-Fertilizer maker Agrium forecasts less profitable year than expected

Published 2017-02-09, 07:14 p/m
© Reuters.  UPDATE 1-Fertilizer maker Agrium forecasts less profitable year than expected
AGU
-
POT
-

(Adds company comment and quarterly results)

WINNIPEG, Manitoba, Feb 9 (Reuters) - Agrium Inc AGU.TO AGU.N , a Canadian fertilizer maker and the world's biggest farm retailer, on Thursday forecast a less profitable year than expected and said its quarterly profit plunged.

The Calgary, Alberta-based company said after normal trading hours that it expects to earn $4.50-$6 per share in 2017. The midpoint of $5.25 fell below analysts' average estimate of $5.45, according to Thomson Reuters I/B/E/S.

Sagging U.S. farmer incomes and soft fertilizer prices have pressured crop nutrient producers, even as new capacity for nitrogen and potash comes on stream this year.

The company said it expected farmers to remain cautious in purchasing crop input supplies, and sees U.S. corn acreage falling to between 90 million and 92 million acres this year, from 94 million in 2016. Corn is a fertilizer-intensive crop.

In September, Agrium and Potash Corp of Saskatchewan POT.TO agreed to join forces in an all-stock deal. tie-up, pending regulator approval, is expected to close in mid-2017.

U.S.-listed shares of Agrium fell slightly in after-hours trading, after closing down 1 percent at $104.02.

Net earnings fell to $67 million, or 49 cents per share, in the fourth quarter from $200 million, or $1.45 per share, a year earlier.

Agrium said revenue fell 5 percent to $2.28 billion, slightly exceeding the average estimate of $2.2 billion, according to Thomson Reuters I/B/E/S.

On an adjusted basis, it earned 60 cents per share, and it recorded a further investment impairment of 8 cents, for earnings per share of 68 cents that Agrium said were relevant to guidance.

Analysts on average expected earnings of 68 cents per share.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.