Agrium Sees Q1 Earnings Just Above Breakeven, Sharply Below Market View - Update

(RTTNews) - Canadian fertilizer and agricultural products distributor Agrium, Inc. (AGU, AGU.TO) Wednesday said it expects first-quarter earnings per share just above breakeven, citing the late spring season this year. Further, the company said it anticipates a strong spring season which will benefit both Retail and Wholesale results in the second quarter.

In pre-market activity, Agrium shares lost $1.53 or 1.57 percent, and is trading at $95.99.

On average, 22 analysts polled by Thomson Reuters expected the company to report earnings of $0.53 per share for the quarter. Analysts' estimates typically exclude special items.

In the prior year, the company's reported earnings were $0.97 per share and adjusted earnings were $1.03 per share.

In its preceding fourth quarter, the company had generated reported earnings of $0.66 per share, and earnings from continuing operations of $0.74 per share.

In its statement, Agrium said the slow start to the spring season would impact the timing of Wholesale, and to a lesser extent Retail, earnings. First quarter Wholesale results were also impacted by reduced rail availability and the usual lag in realized wholesale nutrient prices, the company noted.

In addition, there will be an unplanned shutdown to fix the auxiliary boiler in the Carseland nitrogen facility that experienced a failure on March 22. This is expected to be complete in the second half of May.

Agrium said the shutdown would result to lower product availability of urea by approximately 100,000 tonnes and ammonia by approximately 20,000tonnes in the second quarter of 2014.

The company added that its agricultural fundamentals continue to improve, and that it anticipates a strong spring season which will benefit both Retail and Wholesale results in the second quarter.

Agrium will provide guidance for the second quarter with its first quarter results, to be issued on May 6.