Agrium Inc. announced today consolidated net earnings of $141-million ($0.94 diluted earnings per share) for the first quarter of 2013, compared with net earnings of $155-million in the first quarter of 2012 ($0.97 earnings per share). The 2013 first quarter results included a $16-million ($0.09 diluted earnings per share) share-based payments expense. Excluding this item, net earnings would have been $153-million ($1.03 diluted earnings per share).
Sales were down 10 percent, reflecting reduced volumes due to a late spring season this year and an early one last year. Sales were $3.22 billion, compared to the year-ago $3.57 billion.
While Retail fertilizer volumes were down at 1.41 million mt from the year-ago 1.71 million mt, Wholesale were up slightly at 2.28 million mt from 2.24 million mt.
“The strength in Agrium’s first quarter results clearly demonstrates the benefits and synergies derived from our integrated strategy as we delivered a record $351-million in Adjusted EBITDA for the first quarter. This was supported by Wholesale and Retail achieving their second highest first quarter EBITDA on record, despite the late start to the spring season across North America. The continuation of cold, wet weather in April is likely to result in a somewhat compressed spring application season this year. However, we still expect excellent demand for crop inputs in the first half of 2013 given positive grower sentiment and the strength in the agricultural fundamentals. We also generated $355-million in operating cash flow this quarter, an excellent result for a quarter that is traditionally our slowest seasonally,” said Mike Wilson, Agrium President and CEO.
Agrium is providing guidance for the second quarter of 2013 of $4.60 to $5.40 diluted earnings per share. This excludes derivative gains or losses and share-based payments expense in our estimated second quarter results.
Agrium’s board of directors has authorized the repurchase of up to 5 percent of its currently issued and outstanding common shares through a Normal Course Issuer Bid subject to regulatory approvals, including approval from the Toronto Stock Exchange.