Agrium Q3 earnings off 41 percent

Agrium Inc. reported third-quarter consolidated net earnings of $76-million ($0.52 diluted earnings per share) compared with the year-ago $129-million ($0.80 per share). The 2013 third quarter results included a pre-tax share based payments recovery of $21-million ($0.11 per share), a write-down on our Hanfeng Evergreen Inc. investment of $12-million ($0.08 per share) and a loss of $2-million ($0.01 per share) on natural gas and other hedge positions. Excluding these items, net earnings would have been $73-million ($0.50 per share).

“Agrium’s Retail business unit had one of its strongest third quarters on record, with EBITDA of $147-million. This was driven largely by high usage of crop protection products and related application services in our North American market. The late growing season in North America, combined with uncertainty in the fertilizer markets caused many customers to delay crop nutrient purchases,” commented Mike Wilson, Agrium’s president and CEO.

“Additionally, unplanned lost production due to outages at our Redwater and Carseland facilities reduced product availability in the third quarter and will impact fourth quarter sales volumes. This is expected to impact fourth quarter earnings by approximately $0.20 per share,” added Wilson.

“Despite any short term factors or market fluctuations, we continued to demonstrate our confidence in the ability of the business to generate excess cash flow through the commodity cycle by substantially increasing the dividend in the third quarter and continuing to execute on our share buy-back program,” said Wilson.

Agrium is providing guidance for the fourth quarter of 2013 of $0.80 to $1.25 diluted earnings per share.

Pinnacle acquires ag retail businesses in Texas, Kentucky, Georgia

Pinnacle Agriculture Holdings LLC, through its subsidiary Jimmy Sanders Inc., announced that it has acquired Acuff Farm Supply in Lubbock County, Texas, Mathis Farm Supply in Melber, Ky., and certain assets of G and C Fertilizer Company Inc. in Lyons, Georgia.

Acuff was founded in 1960 as a full-service farm supply operation providing seed, fertilizer, and crop protection chemicals, as well as various hardware and implement supplies to local growers. Under Sanders ownership, the location will be managed by former Acuff owner, Don Jones, and will remain at its present site in Lubbock. The current employees of Acuff will retain their positions under Sanders ownership.

“This has been a difficult decision for me due to the long-standing relationship with my customers, but I was careful to select only a company who shares similar commitments to their customers and employees,” Jones said. “Sanders patterns their business on four core principles that put the customer first, and that was very important to us. I am pleased not only about the transition of ownership, but also the ability to continue to manage the operations and interact daily with my customers.”

Coupled with an existing Sanders location in Slaton, Texas, the Acuff business will be Sanders’ second retail facility in the Lubbock/Slaton area offering custom fertilizer blends, as well as seed and crop protection products. Both locations also provide precision ag services through Sanders’ proprietary OptiGro system.

“Sanders is very pleased with the recent purchase of this long-established, respected business and welcomes its staff to our family,” said Dane Higgins, Jimmy Sanders area manager. “We are confident that the farmers Acuff has served so well will experience a seamless transition and continue to receive efficient, competitive and timely service.”

Mathis Farm Supply in Kentucky was founded by John Ben Mathis in 1971 as a DeKalb seed corn dealer. In 1984 Mathis’ sons, John and Neal, opened a full-service agricultural retail store at the site offering seed, crop protection products, fertilizer, and custom application. Under Sanders ownership, the facility will be managed by former owner, John Mathis, and will remain at its present location in Melber. Steve Wray and Keith Myers will continue to manage the Mathis sales operations.

“I’m very proud of the business that we have developed over the years. It has come a long way since my father started it in the 1970s,” said Mathis. “My employees and I look forward to the transition to Sanders. We are excited to introduce our customers to the core principles instilled by Sanders, as well as being part of an American-owned company.”

The Mathis location will be Sanders’ fourth in that area, with other retail facilities currently located in Fancy Farm, Mayfield, and Wingo, Ky. All of the locations offer custom fertilizer blends and seed and crop protection products, as well as Sanders’ OptiGro precision ag services. Sanders noted that Mathis has been one of its valued wholesale customers for several years.

“Sanders is very pleased with the recent acquisition of this well-established, respected business and welcomes its staff to our family,” said Chris Drummond, Sanders’ Bluegrass Division manager. “We have enjoyed an excellent working relationship with Mathis Farm Supply for several years, and we are confident that the farmers it served so well will experience a smooth transition and continue to receive efficient, competitive and timely service.”

Sanders’ third recent acquisition, announced in late October, is of the agriculture retail assets associated with Lyons, Ga.-based G and C Fertilizer, dba U.S. #1 Farm Center. U.S. #1 Farm Center was founded in 1969 as a

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