Agrium Results Down on Turnarounds, Weather
Agrium Inc. announced a third-quarter net loss from continuing operations of $69-million ($0.52 diluted loss per share) compared to a net loss from continuing operations of $38-million ($0.28 diluted loss per share) in the third quarter of 2016. The third quarter results were driven by lower overall sales volumes and higher cost of product sold related to several scheduled maintenance turnarounds and higher share-based payments due to a year-to-date total shareholder return of 10 percent at Sept. 30.
“Our results this quarter were impacted by a particularly intense summer maintenance schedule, extreme dry weather in Canada and Australia and the two hurricanes in the southern U.S. Looking at the fall season and into 2018, we see solid grower demand for fertilizer and other crop inputs, and expect fertilizer markets to demonstrate continued strength,” said Chuck Magro, Agrium president and CEO. “The sale of Conda and North Bend and China’s recent regulatory approval are significant steps toward completing the merger with PotashCorp by year end and we are excited to move forward as Nutrien in 2018,” added Magro.
Agrium expects to achieve annual diluted earnings per share from continuing operations of $4.65 to $4.80 in 2017 compared to the previous estimate of $4.75 to $5.25 per share. It reduced annual guidance range to reflect the lost production volumes in the third quarter and the impact of challenging weather conditions on Retail operations, particularly those areas impacted by hurricanes.