Agrium Inc. reported a third-quarter net loss attributable to equity holders of $41-million ($0.29 diluted loss per share) compared to year-ago net earnings of $101-million ($0.72 per share). The company said the reduction was driven by lower year-over-year nutrient pricing, low pest and disease pressure in the U.S. which limited the demand for crop protection products and application services this growing season, a delayed harvest across North America related to wet weather, and one-time costs primarily related to the proposed merger with PotashCorp.
Net sales were off 11 percent to $2.24 billion from the year-ago $2.52 billion.
“Agrium continues to focus on what we can control during these times of market weakness,” said Chuck Magro, Agrium president and CEO. “I am particularly pleased with the results of our operational excellence initiatives. Our focus on growing our Retail business continues, with 70 locations acquired year-to-date, representing approximately $500-million of expected incremental annual sales. Looking out for the rest of the year, we expect solid demand for crop nutrients; however, growers have experienced poor fall weather in Canada and pockets of the U.S. which has impacted harvest progress and ammonia applications.”
“Our proposed merger with PotashCorp is a transformational opportunity to create a world class integrated global supplier of crop inputs and services,” he added. “This merger creates benefits and opportunities that neither company could achieve on its own and will unlock significant value for shareholders of both companies. By generating meaningful synergies, and producing significant combined cash flows, the new company will be positioned for further growth, while benefiting customers, suppliers, shareholders, communities and other stakeholders.”
Both Agrium and PotashCorp shareholders will be voting on the merger Nov. 3.