Despite weak crop nutrient pricing, Agrium Inc. reported second-quarter net income of $564 million ($4.08 per diluted earnings) on sales of $6.4 billion. However, it was still a 16 percent reduction from the year-ago $674 million ($4.71 per share) on sales of $7 billion. Agrium said reduced earnings were driven by continued weakness in nutrient prices, partially offset by solid demand, lower costs and strong margins from the Retail segment.
“Agrium reported solid second quarter results driven by lower costs and strong margins across most of our business portfolio, supported by a stable cash flow from our retail operations. Our steadfast focus on operational excellence continues to deliver results and we believe our strategy and assets will create long-term shareholder value,” said Chuck Magro, Agrium’s president and CEO.
Agrium’s annual guidance range has been revised to $5.00-$5.30 per share, down from the previous guidance of $5.25-$6.25, due to the weak outlook for nutrient prices.