News

Major fertilizer company Agrium Inc. AGU-T saw third-quarter profit decline 92 per cent to $26-million (U.S.), closely echoing a warning issued by the company last month that its profit could be nearly wiped out by lower selling prices for most of its products and reduced potash sales volumes.

The Calgary-based company said its earnings amounted to 16 cents per diluted share, versus $367-million or $2.31 per share in the third quarter of 2008,

Agrium, which reports earnings in U.S. dollars, said revenue slipped to $1.8-billion from $1.9-billion in the third quarter of 2008. Excluding one-time items, Agrium reported earnings of $46-million or 29 cents per share.

“The third quarter of 2009 held a number of challenges for the entire agriculture and fertilizer sector,” president and CEO Mike Wilson said in a statement.

“Corn prices were depressed through much of the summer period, due partly to excellent growing conditions across North America, which contributed to lower sales and application of crop protection products at the retail level. Uncertainty over global potash pricing continued to result in cautious buying patterns from all customers, although our sales volumes this quarter were more than four times higher than the previous quarter.”

The company said it now expects second-half earnings between 30 cents and 60 cents per share, or fourth-quarter earnings of 14 cents to 44 excluding estimated hedging gains or losses and stock-based compensation expense.