Agrium Announces 3Q Results & Dividend Increase
OREANDA-NEWS. November 13, 2014. Agrium Inc. (TSX and NYSE: AGU) announced consolidated net earnings (“net earnings”) from continuing operations of USD91-million (USD 0.63 diluted earnings per share) for the third quarter of 2014, compared with net earnings from continuing operations of USD 80-million in the third quarter of 2013 (USD 0.54 diluted earnings per share).
The 2014 third quarter results included pre-tax share-based payments expense and net losses on foreign exchange and derivative positions of USD 31-million (USD 0.17 diluted earnings per share) as well as a one-time recognition of a previously unrecognized tax benefit of USD29-million (USD 0.20 diluted earnings per share). Excluding these items, net earnings from continuing operations would have been USD 87-million (USD 0.60 diluted earnings per share).
Agrium’s Board of Directors also announced today its intention to increase Agrium’s dividend by four percent, or USD 0.12 U.S. per common share to a total dividend of USD 3.12 U.S. per common share on an annualized basis. Based on the closing price of Agrium’s shares on the NYSE on Friday, October 31, 2014, this represents a dividend yield of 3.2 percent. The increased dividend is expected to be paid in quarterly installments of USD 0.78 U.S. and the next USD 0.78 U.S. per common share dividend will be paid on January 21, 2015 to shareholders of record on December 31, 2014.
“Agrium’s business once again proved resilient delivering solid results this quarter despite challenging agricultural market conditions. Near perfect growing conditions across the U.S., combined with low crop prices, reduced demand for some crop protection products. Wholesale achieved strong performance this quarter from our phosphate and nitrogen businesses; however results in the second half of this year have been impacted by major planned turnarounds at our Vanscoy potash and Redwater nitrogen facilities. These projects will complete essential work to further strengthen Agrium’s competitive position and deliver significant additional free cash flow in the coming years,” commented Chuck Magro, Agrium’s President and CEO.
“The further increase in our dividend is a demonstration of our confidence in our strategy, and our commitment to shareholder returns. We are confident of our ability to generate significant cash flow in the future and we maintain a positive long-term outlook for the agriculture industry,” added Agrium’s President and CEO, Chuck Magro.
Agrium is providing guidance for the fourth quarter of 2014 of USD 0.45 to USD 0.75 diluted earnings per share from continuing operations. This excludes net gains or losses on foreign exchange and derivative positions and share-based payments expenses or recoveries.
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