OREANDA-NEWS. July 20, 2012. Agrium Inc. (TSX and NYSE: AGU) announced that it expects its second quarter earnings to be in the range of USD 5.40 to USD 5.50 diluted earnings per share and the first half earnings to be in the range of USD 6.72 to USD 6.82 diluted earnings per share, reported the press-centre of Agrium.  

The estimate excludes hedging gains or losses and share-based payments expense in our first quarter actual results and estimated second quarter results.1 This revised earnings estimate is approximately 15 percent higher than the previously announced second quarter guidance level and would represent a record earnings for the second quarter and the first half of the year.

“The increase in expected earnings is due to excellent results across our entire crop input business, resulting from the continuation of robust demand through June, despite the very early start to the spring season. As a result, the second quarter EBITDA3 for all three business units is expected to be higher than the same period last year. The outlook remains very positive, supported by the significant increase in grain and oilseed prices globally due to adverse weather in the U.S. and an expected tightening in international crop input markets. Detailed financials and more colour on our results and the outlook for our business and sector will be provided in our second quarter financial results on August 2, 2012,” said Mike Wilson, Agrium President and CEO.

The major assumptions made in preparing our first half guidance are outlined below and include but are not limited to:

The consolidated income tax rate approximating 28 percent for the second quarter

The exclusion from the guidance range of the effects in the first half of:

Share-based payments

Gains or losses on hedge positions
 
1 2012 first quarter consolidated net earnings was USD 155-million (USD 0.97 diluted earnings per share). This included a pre-tax loss of USD 13-million (USD 0.06 diluted earnings per share) on natural gas and other hedge positions and a pre-tax share-based payment expense of USD 64-million (USD 0.29 diluted earnings per share).

2 Earnings estimates are subject to completion of quarterly financial close processes and approval from Agrium’s Board of Directors.

3 Earnings from continuing operations before finance costs, income taxes, depreciation and amortization.

About Agrium
Agrium Inc. is a major Retail supplier of agricultural products and services in North America, South America and Australia and a leading global Wholesale producer and marketer of all three major agricultural nutrients and the premier supplier of specialty fertilizers in North America through our Advanced Technologies business unit. Agrium’s strategy is to grow across the value chain through acquisition, incremental expansion of its existing operations and through the development, commercialization and marketing of new products and international opportunities. Our strategy places particular emphasis on growth opportunities that both increase and stabilize our earnings profile in the continuing transformation of Agrium.