Agrium Updates Spring Season Results.Business Editors CALGARY, Alberta--(BUSINESS WIRE)--June 20, 2002 Agrium Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :AGU AGU Aoyama Gakuin University, Tokyo, Japan AGU American Geophysical Union AGU Arabian Gulf University (Bahrain) AGU All Grown Up (TV show) AGU Aguascalientes, Aguascalientes, Mexico .TO) (NYSE NYSE See: New York Stock Exchange :AGU) ("Agrium") announced today that second quarter earnings for 2002 are expected to be approximately $0.15 per common share, before reflecting potential foreign exchange losses related to Argentina. The Company's previous guidance for the second quarter was earnings of $0.25 to $0.30 per common share, before Argentine foreign exchange losses. Based on current exchange rates, foreign exchange losses in Argentina would be $0.03 per common share, resulting in second quarter earnings of $0.12 per common share. Other than foreign exchange losses, lower earnings expectations are attributable to lower nitrogen prices, weaker sales volumes in western Canada
Western Canada, commonly referred to as the West , accrued shut-in costs and lower Retail fertilizer gross profit. The expected improvement in global nitrogen prices did not materialize until late in the spring season and therefore did not have the expected benefit on second quarter revenue. From a sales perspective, overall volumes recovered from 2001 although western Canadian volumes did not meet expectations. Western Canada was impacted by concerns over drought, especially in the province of Saskatchewan, and above average nitrogen carry-over in soils in some locations across the prairies as a result of record dry conditions and low crop yields. Shipping additional product to the U.S. and reduced production at a number of the facilities also led to higher than expected cost of product sold. The shut-in of the Fort Saskatchewan Nitrogen facility in May for inventory control purposes also added unanticipated costs. Results for North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Retail are also lower than expected. The margin for Retail fertilizer is similar compared to 2001 but is based on lower selling prices resulting in lower gross profit. Retail is also not benefiting from price appreciation of fertilizer in inventory this year compared to 2001. Agrium Inc. is a leading global producer and marketer of fertilizer and a major retail supplier of agricultural products and services in both North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Argentina. The Corporation produces and markets four primary groups of fertilizers: nitrogen, phosphate, potash potash: see potassium carbonate. potash Name used for various inorganic compounds of potassium, chiefly the carbonate (K2CO3), a white crystalline material formerly obtained from wood ashes. and sulphur. The Corporation's strategy is to grow through incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. expansion of its existing operations and acquisitions as well as the development, commercialization and marketing of new products and international opportunities. |
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