Agrium Inc. reported net income of $3 million ($0.02 per diluted share) on sales of $3.08 billion for the first quarter ending March 31, 2014, compared to the year-ago $141 million ($0.94 per share) and $3.16 billion, respectively.
“Agrium’s first quarter is traditionally our seasonally lowest earnings quarter and this was exacerbated this year by the record cold winter across North America,” said Chuck Magro, Agrium president and CEO. “However, farmer sentiment is positive this spring and we are now seeing good demand for crop input products and services. Agrium achieved a record $788 million in operating cash flow this quarter, despite the lower net earnings, as we continue to focus on reducing working capital needs.”
Agrium is providing guidance for the second quarter 2014 of $3.85-$4.35 diluted earnings per share from continuing operations. The outage at the Carseland nitrogen plant is expected to impact second quarter earnings due to lost production and higher costs. This impact is $0.35 per share.
LSB Industries Inc. reports that its Pryor, Okla. chemical facility ran its anhydrous ammonia plant for the full month of April 2014 at its targeted production rate of approximately 650 st/d on average and has continued that into May. As previously reported, the Pryor’s anhydrous ammonia plant returned to production during the last several days of February 2014 at a reduced rate and was gradually brought up to its targeted rate during March. Additionally, in early May 2014, the Pryor resumed production of urea and UAN.
“The extensive work we have performed to upgrade and improve the reliability of our Pryor facility is beginning to yield results,” said Jack Golsen, LSB board chairman and CEO. “With the anhydrous ammonia plant now producing at targeted rates, we can significantly increase LSB’s output of urea and UAN, and capitalize on the market opportunities for these products. While our upgrade of Pryor is not yet complete, we are pleased with the progress we have made to date, and anticipate meaningful improvement of the plant’s operating performance in the future.”
The Mosaic Co. has announced that it plans to cut some 500 jobs over the course of the next 12 months. Overall, the company plans to cut costs some $500 million over the next five years.
Mosaic is taking on some 700 new employees with its acquisition of CF Industries Holdings Inc.’s phosphate operations.
Potash Corp. of Saskatchewan Inc. and Moroccan phosphate producer OCP S.A. announced on May 7 that they have reached a definitive agreement under which PotashCorp would purchase OCP’s full range of dry finished phosphate products to help PotashCorp meet its customers’ requirements for the U.S. and Canada.
The two parties have also signed a Memorandum of Understanding that would provide for the sale by PotashCorp to OCP of ammonia to meet OCP’s growing ammonia requirements for its new fertilizer capacity in the Jorf Lasfar Hub.
OCP, the largest global producer of phosphate rock and phosphoric acid, currently has 3 million mt/y of DAP/MAP capacity at Jorf Lasfar, but has announced two phases of expansion at the complex, the first of which is slated to be operational by July 2015 and would add another 4 million mt/y of DAP/MAP capacity. The second phase is planned for operation starting in 2020, and would bring annual DAP/MAP production capacity at Jorf Lasfar to more than 13 million mt.
PotashCorp, through a wholly owned U.S. subsidiary, currently purchases phosphate rock from OCP to supply its Geismar, La., production facility.
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