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Nutrien Ltd. missed estimates for quarterly earnings and cut its full-year adjusted profit forecast on Monday, as the fertilizer maker struggles with recent floods in the U.S. midwest that delayed planting as well as a prolonged trade war.

Record floods devastated a wide swath of the U.S. farm belt – including Iowa, Nebraska, South Dakota – in March delaying spring planting season.

“U.S. weather in the first half was so severe it nearly eliminated global demand growth for crop inputs,” chief executive Chuck Magro said in a statement.

The company also lowered its 2019 potash sales volume forecast to 12.6 million tonnes to 13 million tonnes from 13 million tonnes to 13.4 million tonnes.

Chinese demand could be delayed by the tariffs from the Sino-U.S. trade war, while a below normal monsoon season is weighing on demand in India, the company said.

The trade war has also depressed U.S. farm incomes, leaving growers less money to spend on seed and fertilizer.

Weather and lower crop planting hit North American spring potash demand of which only a proportion is expected to be made-up in the fall, the company added.

Nutrien lowered its 2019 adjusted net earnings forecast to $2.70 to $3 a share from $2.80 to $3.20 a share and adjusted core earnings to $4.35-billion to $4.70-billion from $4.4-billion to $4.9-billion.

The company, formed by the merger of Agrium Inc. and Potash Corp. of Saskatchewan in early 2018, said net income from continuing operations rose to $858-million, or $1.47 a share, in the three months ended June 30, from $741-million or $1.17 cents a share, a year earlier.

Excluding items, the company earned $1.58 a share, missing an estimate of $1.60, according to IBES data from Refinitiv.

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 23/05/24 4:00pm EDT.

SymbolName% changeLast
NTR-T
Nutrien Ltd
-1.56%81.31
NTR-N
Nutrien Ltd
-1.86%59.21

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