You never want to disappoint when the market is in an ugly mood. The NR says it all.
Agrium Reports Third Quarter Results
CALGARY, ALBERTA--(Marketwire - Nov. 7, 2012) -
ALL AMOUNTS ARE STATED IN U.S.$
Agrium Inc. (TSX:AGU) (NYSE:AGU) announced today
consolidated net earnings ("net earnings") of $129-million ($0.80
diluted earnings per share) for the third quarter of 2012, compared to
net earnings of $293-million reported in the third quarter of 2011
($1.85 diluted earnings per share).
The 2012 third quarter results included a pre-tax
share-based payment expense of $53-million ($0.23 diluted earnings per
share). The third quarter results also included a non-recurring charge
of $66-million ($0.29 diluted earnings per share) related to
environmental remediation liabilities and a $5-million ($0.02 diluted
earnings per share) charge associated with the closure of our Courtright
facility announced on August 29, 2012. Excluding these items, net
earnings would have been $215-million ($1.34 diluted earnings per share)
for the third quarter of 2012.1
"Agrium's third quarter results demonstrated our
competitive strengths in nitrogen and the ability of our Retail business
to deliver solid earnings, even given the early spring season and after
experiencing one of the worst droughts in U.S. history. Gross profit
from our nitrogen business was the highest for a third quarter in our
history, while Retail EBITDA(2) nearly matched the outstanding results
reported in the third quarter of 2011. Our results this quarter were
impacted by the downtime at our potash operations associated with our
substantial potash mine expansion and a weaker potash market stemming
from uncertainties from ongoing negotiations with India and China," said
Mike Wilson, Agrium President and CEO. "Looking ahead, we are in an
excellent position to continue to benefit from the robust agricultural
fundamentals, as growers strive to make the most of the attractive crop
price environment by optimizing their use of Agrium's line of crop
inputs and services," added Mr. Wilson.
"Agrium has again recently demonstrated our
commitment to returning capital to shareholders with a further doubling
to our dividend and the successful completion of a significant share
repurchase program. The increased dividend and Cdn$900-million
substantial issuer bid are an indication of our confidence that the
sector fundamentals and our integrated strategy will continue to deliver
strong results for the benefit of shareholders. Agrium is committed to
continuing to deliver value-added growth and we remain confident we can
achieve our growth objectives while also continuing to grow our dividend
over time," added Mr. Wilson.
Agrium is providing guidance for the fourth quarter
of 2012 of $1.50 to $1.90 diluted earnings per share. This excludes
hedging gains or losses and share-based payments expense in our
estimated fourth quarter results.3
Third quarter effective tax rate of 31 percent used for adjusted diluted earnings per share calculations.
Earnings from continuing operations before
finance costs, income taxes, depreciation and amortization. See
disclosure under the heading "Non-IFRS Financial Measures" in the
section "Management's Discussion and Analysis".
See disclosure in the section "Outlook, Key Risks
and Uncertainties" in our 2012 third quarter MD&A and additional
assumptions in the section "Management's Discussion and Analysis".