Agrium Inc. announced today that it expects its 2012 fourth quarter earnings to be slightly above $2.00 per diluted share. This estimate excludes hedging gains or losses, share-based payments recovery for the fourth quarter and non-recurring non-operating gains. Agrium’s previously announced fourth quarter earnings guidance was $1.50 to $1.90 per diluted share on a comparable basis.
Agrium said its Retail business unit is expected to generate over $120 million of EBITDA for the fourth quarter which equates to an expected record year of approximately $950 million of EBITDA in 2012. The Wholesale business also continued to generate better than expected results with EBITDA for the fourth quarter and year anticipated to exceed $500-million and $1.9-billion respectively.
“The increase in our estimated financial results is due to a very strong finish to the fall application season in our North American Retail operations, supported by an extended fall season in the U.S. and continued strength in grain and oilseed prices. Going forward, continued strength in crop prices and low global grain inventories are anticipated to support a strong spring application season in 2013,” said Mike Wilson, Agrium president and CEO.
Agrium’s finalized fourth quarter financial statements and audited annual financial results along with a more detailed review of operations and the outlook for our business will be provided on Feb. 22, 2013.
Jana Partners LLC has released some new materials and a new presentation for shareholders in conjunction with meetings Jana and its board nominees are holding this week with shareholders of Agrium Inc. across Canada. As previously reported, Jana, Agrium’s largest shareholder, has put together a slate of five new directors it is seeking to elect to the Agrium board of directors.
“Agrium’s board has been living in an alternate universe where shareholders have no desire to explore the many ways we’ve identified to unlock value,” said Jana Managing Partner Barry Rosenstein. “All along we have been speaking to shareholders and seeing a much different picture, with just about every shareholder we speak to wanting to see a serious discussion of these issues and a large and growing number who support enhancing the board so Agrium can reach its full potential.
Vale S.A. has halted construction indefinitely at its $6 billion Rio Colorado potash project in Argentina. Vale, suffering from a slump in world iron ore prices, has cut back on other projects and sold non-core assets.
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