Agrium Profit Tops Estimates On Lower Costs; Cuts Top End Of FY EPS Guidance

(RTTNews) - Canadian fertilizer producer Agrium Inc (AGU, AGU.TO) on Wednesday reported second-quarter net earnings of $675 million or $4.71 per share compared with $616 million or $4.28 per share last year.

Excluding items, adjusted earnings for the quarter were $4.90 per share compared with $4.37 per share a year ago.

Revenues for the quarter were down 5% at $6.99 billion compared with $7.34 billion in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $4.78 per share on revenues of $7.29 billion for the quarter. Analysts' estimates typically exclude special items.

The company said its earnings benefited from higher wholesale volumes and lower production costs for most products. But its retail results were hurt by lower crop prices, drought in Western Canada and wet conditions in the U.S. Corn Belt, which affected growers' decisions and limited the opportunities for use of certain crop inputs and services.

For the full year 2015, the company now expects adjusted earnings of $7.00 to $7.50 per share, from prior guidance of $7.00 to $8.25 per share. The guidance reflects the impact of low crop prices on farmers, and reduced potash and phosphate prices.

Analysts expect earnings of $7.42 per share for the year.

The company said its annual nitrogen and potash production targets remain unchanged.