Agricultural headwinds and plant downtime impacted Agrium Inc. in the fourth-quarter and full-year 2014. Agrium Inc. reported fourth-quarter net income of $51 million ($0.33 per diluted and basic share) on sales of $2.7 billion, down from the year-ago $99 million ($0.66 per share) and $2.87 billion, respectively. Net earnings from continuing operations were stronger at $70 million versus the year-ago $110 million.
Agrium, which dismantled its Advanced Technology segment in 2014, saw fourth-quarter losses from discontinued operations of $19 million compared to a year-ago loss of $11 million.
“Agrium once again benefited from the strength of its competitive advantages and diversity, delivering solid fourth quarter earnings across the company, despite some headwinds in agricultural markets. We undertook downtime to refresh and expand our potash and nitrogen facilities this quarter, which impacted Wholesale earnings in the short term but will drive higher future capacity and utilization rates. Agrium’s Retail distribution business demonstrated its operational stability in this environment and achieved record earnings again this year, reporting improvements across all target metrics and with EBITDA surpassing $1.1-billion. Nutrient sales this quarter were impacted by a shortened fall application window due to the late harvest and early onset of winter in the U.S., but this will support demand for the coming spring season." commented Chuck Magro, Agrium’s President and CEO.
Full-year net income was $720 million ($4.97 per share) on sales of $16 billion compared to 2013’s $1.06 billion ($7.20 per share) and $15.73 billion. Net income from continuing operations was $798 million versus the year-ago $1.08 billion.
Agrium reported a net loss of $78 million from discontinued operations in 2014, up from 2013’s loss of $13 million.