Agrium Inc.
(
AGU
) announced that it has begun the construction of its production
expansion project at Agrium Advanced Technologies (
AAT
) Environmentally Smart Nitrogen (ESN) facility in New Madrid,
Missouri. It is a $28 million project, which is scheduled to be
completed in the third quarter of 2012.
The new facility is expected to add another 136,000 tons to its
output, bringing it to a targeted capacity level of 246,000 tons
per year at the operations. After the expansion, total ESN capacity
for AAT will be 464,000 tonnes.
AAT ESN, a nitrogen-based fertilizer, is designed for higher
yields. Agrium remains confident that the expansion will not only
enable it to continue meeting the ESN demand in North America but
also boost the growth of the unique product in the future.
Agrium posted record net earnings of $374 million or $2.34 per
share in the fourth quarter of 2011 versus $135 million or 86 cents
per share in the prior-year quarter, outpacing the Zacks Consensus
Estimate of $2.00 per share. In fiscal 2011, net earnings were $1.4
billion or $8.68 per share compared with $713 million or $4.51 per
share in fiscal 2010.
Results benefited from record high crop prices and overall
strong fundamentals in agriculture and the crop input markets.
Revenues in the quarter rose 32.5% year over year to $3.18 billion.
Revenue for the year was $15.47 billion, up from $10.74 billion in
the prior year.
Though the company did not provide any specific estimates for
its 2012 revenue and net income, it expects global demand for
fertilizers and seeds to be strong throughout the year.
Historically, higher corn prices should boost demand for seeds,
while demand for nitrogen fertilizer could rise in 2012. Agrium
expects strong nutrient demand in the first half of 2012 supported
by the continued strength in crop prices.
Agrium faces stiff competition from
CF Industries Holdings Inc.
(
CF
) and
Potash Corp. of Saskatchewan Inc.
(
POT
). Currently, the company maintains a Zacks #3 Rank which
translates into short-term (1 to 3 months) Hold rating.
AGRIUM INC (
AGU
): Free Stock Analysis Report
CF INDUS HLDGS (
CF
): Free Stock Analysis Report
POTASH SASK (
POT
): Free Stock Analysis Report
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