Nutrien Ltd. on May 7 reported a first-quarter net loss from continuing operations of $1 million and EBITDA of $487 million, down from the $97 million in combined earnings reported by Potash Corp. of Saskatchewan Inc. and Agrium Inc. during last year’s first quarter.

Nutrien said the results were impacted by a late spring season in North America, which shifted planting, applications, and associated retail crop input purchases to the second quarter of 2018. Additionally, depreciation and amortization increased by $112 million during the quarter due primarily to the purchase price allocation (PPA) impact. Stronger global crop nutrient prices compared to last year and higher potash sales volumes partially offset the late start to the spring season.

Adjusted for PPA ($74 million or $0.08 per share) and merger-related costs ($66 million or $0.08 per share), first-quarter earnings from continuing operations were $0.16 per share, while first-quarter EBITDA adjusted for merger-related costs was $553 million.

“Nutrien’s first quarter was affected by a late start to the spring season across North America and West Coast rail performance issues,” said President and CEO Chuck Magro. “However, we expect a strong second quarter with improved grower margins and strong demand and firm prices for most crop inputs.”

Nutrien said it acquired 29 retail locations during the first quarter, with estimated annual revenues of approximately $280 million through April 2018. While retail earnings and nitrogen prices were impacted by the late season in North America, Nutrien said potash segment sales volumes were up 11 percent and earnings increased compared to the combined first-quarter 2017 results of legacy PotashCorp and Agrium operations, due to higher potash prices, lower production costs, merger synergies, and strong offshore sales volumes, despite significant rail issues during the quarter.

Nutrien said it has raised the guidance range for potash sales volumes and EBITDA to 12.0-12.5 million mt and $1.2-$1.4 billion, respectively, while its guidance for nitrogen EBITDA increased to $1.0-$1.2 billion. Full-year 2018 guidance was raised to $2.20-$2.60 diluted earnings per share from continuing operations, and first-half 2018 guidance was provided at $1.50-$1.65 earnings per share. Nutrien declared a quarterly dividend of $0.40 per share and repurchased 10.3 million shares under its normal course issuer bid program year-to-date.

The company said it achieved $150 million in run-rate synergies as of March 31, 2018. Nutrien said it remains on target to achieve its commitment of delivering a run rate of $500 million in annual synergies by Dec. 31, 2019.

A strike at Canadian Pacific Railway Ltd. (CP) that had been planned for midnight on April 20 was avoided at the last minute after the Teamsters Canada Rail Conference (TCRC) and the International Brotherhood of Electrical Workers agreed to a recommendation from federal mediators to vote on a contract offer from CP.

The two unions represent nearly 3,400 CP train conductors and engineers, and a walkout would have crippled CP’s operations just as the spring planting season gets underway in Western Canada and the Northern Plains, a critical time for the fertilizer industry (GM April 20, p. 1).

“This is tremendous news for our employees, our customers, and the Canadian economy,” said CP CEO Keith Creel in an April 20 statement. CP had reportedly begun a partial network shutdown as the strike deadline neared, but the company said it would immediately execute a safe and structured startup of operations to avoid any rail disruptions, Bloomberg reported.

The decision by the unions to allow the Canadian Industrial Relations Board to administer a ratification vote will probably only delay rather than avert the strike, however. While details of CP’s offer were not released and the actual date of the vote has not been scheduled, Bloomberg reported that union leaders were urging members to reject the offer.

“CP succeeded in delaying the inevitable,” said TCRC President Doug Finnson in a statement . “The government will bring this ridiculous offer to our members and we strongly recommend that members vote against it.” Long hours, worker fatigue, and cuts that CP made to increase profitability are reportedly on the list of grievances the unions have as they negotiate a new contract.

Inocucor Corp., a Denver-based developer and producer of biological crop inputs, announced on April 17 that it has acquired ATP Nutrition, a plant nutrients producer in Oak Bluff, Man. Terms of the acquisition were not disclosed. Inocucur said the acquisition will allow the R&D teams of both companies to collaborate on the development of new products combining biologicals and plant nutrition.

“The combination of biologicals, such as Inocucor’s Synergro^® and Synergro Free™, with plant nutrients in ready-to-use combinations is unique in the ag sector,” said Donald R. Marvin, president and CEO of Inocucor. “This strategic partnership is the first major step toward Inocucor’s vision to offer a broad range of products that support farmers across their crop nutrient and biological needs.”

Inocucor said ATP will operated as a wholly-owned subsidiary and continue to supply plant nutrients to canola, soybean, corn, pulse, and cereal growers through its North American distribution network. Inocucor will continue to market ATP’s micronutrient product line through its existing sales force and distributor network. Inocucor will also continue to operate ATP’s 25,000-square-foot EPA-registered R&D formulation and manufacturing facility in Oak Bluff, which also serves as headquarters for its 23 employees.

Inococur employs about 40 people in Montreal and the U.S., and anticipates adding another 25-30 high-level scientific and managerial professionals over the next year. In May, Inocucor will occupy its new 30,000-square-foot U.S. headquarters and commercialization office currently under construction in Centennial, Colo. The company said its Montreal-based, R&D-focused Technical Center of Excellence was recently expanded from 10,000 to 20,000 square feet (GM Jan. 12, p. 25).

Potash Corp. of Saskatchewan Inc. and Agrium Inc. announced on Dec. 27 that they have received clearance from the U.S. Federal Trade Commission and have now obtained all regulatory approvals required to close their proposed merger of equals transaction. The transaction is expected to close effective Jan. 1, 2018, and remains subject to customary closing conditions. The merged company will be named Nutrien.

“This final clearance marks a significant milestone in bringing two industry leaders together,” said Chuck Magro, president and CEO of Agrium. “Given our extensive integration planning work, we expect to move quickly upon closing to begin delivering on the many strategic benefits and synergy potential of this combination.”

“We are pleased to have received final regulatory clearance and look forward to the formation of Nutrien,” said Jochen Tilk, president and CEO of PotashCorp. “Nutrien will build upon the impressive legacies and best practices of both companies to create long-term value for all our stakeholders.”

With the closing of the transaction on Jan. 1, the common shares of Nutrien are expected to commence trading on the Toronto Stock Exchange (TSX) and the New York Stock Exchange under the ticker symbol “NTR” at the opening of market on Jan. 2, 2018. Trading of Agrium common shares and PotashCorp common shares is expected to be suspended at the opening of market on Jan. 2, and such shares will be delisted at the close of market on the same date.

Cash entitlements in lieu of fractional Nutrien common shares will be based on the trading price of the Nutrien common shares on the TSX on the first five days of trading on such exchange. Such entitlements will be delivered as soon as practicable thereafter to former Agrium and PotashCorp shareholders who have submitted their duly completed letters of transmittal and elections forms in accordance with the procedures described in the applicable letter of transmittal and election form.

A partnership of ag retailers and cooperatives including The Equity in Effingham, Ill., and Sunrise Cooperative in Norwalk, Ohio, on Dec. 26 announced the launch of CommoditAg LLC, a new online ordering platform for crop inputs including herbicides, fungicides, insecticides, adjuvants, and plant nutrition products.

CommoditAg said it offers “an extensive network of local warehouses offering high quality agriculture products at low prices direct to your farm,” with additional warehouses to be announced in the coming weeks. The company’s website at CommoditAg.com is live and accepting orders.

“Our companies are combining forces to give CommoditAg the best agriculture infrastructure and supply chain in the country,” the company’s website states. “Our joint passion for providing a great customer experience from our store doors to your farm gate is staying our number one priority as we add online ordering and delivery capabilities through CommoditAg.”

CommoditAg’s launch announcement includes a limited time offer of free delivery in Illinois, Indiana, Kansas, Ohio, and Wisconsin for orders over $5,000, and free shipping for a limited time in Missouri, Nebraska, South Dakota, and Minnesota for orders over $10,000. After the initial launch period, CommoditAg said it will offer free delivery within 50 miles of any participating warehouse location before March 15, 2018. Growers can also pick up their online orders at any of the company’s warehouse locations.

“CommoditAg will continue build its footprint across the U.S. providing convenient locations for growers who choose to purchase their crop protection and plant nutrition products online,” said Tim Bence, Chief Operating Officer of CommoditAg.

CommoditAg joins a growing list of companies offering online ordering for crop inputs. Current competitors in the e-commerce space for crop input sales include Farmers Business Network (FBN), which began in 2014, and the recently launched Agroy, which is based in Chicago.

Growmark, Bloomington, Ill., reported $7.3 billion in sales for fiscal year 2017, which ended Aug. 31, 2017, up from $7.0 billion in 2016. Pretax income for the year was $91 million, down from $116 million in 2016.

Growmark’s Crop Nutrients Division had record sales volumes for the year, led by shipments of phosphates and potash. Growmark noted that it has posted record crop nutrient sales volumes in six of the last seven years. The company’s Crop Protection Division also posted record chemical sales, with nitrogen stabilizer and adjuvant sales up significantly from 2016.

Growmark’s overall system seed acres remained relatively flat, with an uptick in soybean sales but a slight downturn in corn sales compared with 2016. The Energy Division posted its third highest sales volumes on record, led by increases in distillates and propane. Growmark’s Retail Grain Units saw improved earnings as well, with record-high bushel volumes reported.

“The fiscal year was not without its challenges, with economic conditions putting continued pressure on farm net incomes,” said CEO Jim Spradlin. “Warm winter weather lowered demand for home heat, and the challenges of Hurricane Harvey on the energy supply chain impacted energy results. Crop Nutrients endured a devaluation of nitrogen products during the peak spring season.”

Growmark estimates patronage refunds at $59 million, distributed in a combination of cash and stock, followed by stock redemption. Spradlin noted the Growmark has distributed $976 million in patronage earnings to members and $815 million in cash over the past ten years.

Richardson International Ltd., Winnipeg, Man., announced on Dec. 11 that it has acquired Bestland Air Ltd., an independent crop inputs retailer located near Starbuck, Man. Richardson said the transaction, which closed on Dec. 8, adds to its growing network of retail crop input facilities across the Canadian Prairies.

“This business is an excellent addition to our Richardson Pioneer network as it will be an extension of our full-service Richardson Pioneer Ag Business Centre in Starbuck,” said Tom Hamilton, vice president, Agribusiness Operations. “It will provide us with additional capacity and enhance our ability to continue providing local producers with leading seed, fertilizer, and crop inputs technologies.”

Richardson has been expanding its crop inputs network through both acquisitions and new builds. The company acquired 10 retail crop inputs locations from CHS Canada in October (GM Nov. 3, p. 1), purchased two independent, full-service retail facilities in Vermilion and Forestburg, Alta., last summer (GM Sept. 1, p. 1), and acquired Crop First Agro in Grenfell, Sask., earlier this year (GM Feb. 3, p. 12)

Richardson also opened new crop inputs centers in Pasqua, Sask., in November, and Elrose, Sask., last summer. A third new facility is under construction in Wakaw, Sask., and is scheduled to open in 2018. The company announced plans for the three new facilities in fall 2016 (GM Sept 23, 2016).

LSB Industries Inc., Oklahoma City, Okla., reported on Dec. 6 that the ammonia plant at its Pryor, Okla., chemical facility resumed production on Dec. 4. Pryor was taken out of service in September to repair damage to some of the ammonia plant’s electrical controls, wiring, and piping caused by a Sept. 23 fire (GM Sept. 29, p. 1).

While completing repairs, the company opted to replace the process gas pre-heat system at Pryor (GM Nov. 3, p. 1). As a result, LSB does not anticipate a turnaround at Pryor in 2018.

LSB management expects that the EBITDA impact resulting from the expenses related to the repairs and upgrades at Pryor, the excess cost of purchasing UAN versus producing it in order to meet customer commitments, and the reduced absorption of fixed costs will be between $5.5 million to $6.0 million for the fourth quarter of 2017.