All Posts from May 2, 2017

Scotts finds buyer for Offshore assets; 2Q earnings down

Scotts Miracle-Gro Co. said today it has received a binding and irrevocable offer for its European and Australian consumer operations from Exponent Private Equity LLP. The proposed transaction, valued at approximately U.S.$250 million (USD), is expected to close during the company’s fiscal fourth quarter. The deal is still subject to prior consultation with the works councils, employee representative bodies and regulatory approval.

In other news, Scotts reported a dip in second-quarter earnings to $165.1 million from the year-ago $210.1 million. The company cited a better spring lawn and garden season for the year-ago time period.

“We’ve had strong momentum over the past several weeks and consumer purchases entering May – historically the peak of the lawn and garden season – are down less than one percent from last year,” said Jim Hagedorn, chairman and CEO.  “We expected a difficult comparison through the first half of the year and we are confident in how we are positioned for the balance of the season. We also remain pleased with the continued double-digit growth so far this year in our hydroponics products sold by the Hawthorne Gardening business.”

Wet weather posing logistic woes

Shippers and National Weather Service are forecasting flooding throughout the heartland’s river system this week. The Illinois, Ohio, Mississippi, Arkansas Rivers and parts of the Gulf all currently at or forecast to hit flood stage later this week. Shippers are expecting major delays. Most expect fertilizer price ideas to be impacted as more river closure and delay information becomes available.

Three fertilizer companies report 1Q losses

Agrium reports 1Q loss

Agrium Inc. announced today its 2017 first quarter results, with a net loss to equity holders of Agrium of $11 million ($0.08 diluted loss per share) compared to year-ago net earnings to equity holders of $2 million ($0.02 per share). The company said the reduction in net earnings was driven primarily by higher natural gas prices and lower phosphate prices relative to the first quarter of 2016.

Mosaic in 1Q loss column

The Mosaic Co. today reported a first quarter 2017 net loss of $1 million, compared to net earnings of $257 million in the first quarter of 2016. Earnings per diluted share were $0.00, which included a negative $0.04 impact from notable items. Mosaic’s net sales in the first quarter of 2017 were $1.6 billion, down from $1.7 billion last year, with lower prices more than offsetting higher sales volumes. Operating earnings during the quarter were $30 million, down from $163 million a year ago, driven by lower phosphate and potash prices, partially offset by lower phosphate raw materials costs and effective expense management.

“Our results do not yet reflect improving potash and phosphate market conditions we anticipate to benefit from for the remainder of the year,” said Joc O’Rourke, president and CEO. “This quarter we experienced several operational challenges which are now largely behind us.  Our constructive outlook hasn’t changed and we expect to see stronger earnings in the remainder of 2017.”

Intrepid reports 1Q improvement

Intrepid Potash Inc. reported a first quarter net loss of $13.7 million ($0.17 per diluted share), down from the year-ago loss of $18.4 million ($0.24 per share).

“Our transition to lower-cost solar potash production and Trio^®-only production at our East facility is beginning to show the promise we envisioned last year,” said Bob Jornayvaz, Intrepid’s executive chairman, president and CEO. “Solar-only potash production improved our potash margins, and Trio^® sales volumes reflected our work to expand our presence in the international market. We continue to make progress in our water marketing and expect water sales to provide meaningful cash flow as the year continues.”