) has provided its updated outlook for fourth-quarter 2013. The
company expects earnings from continuing operations to be at the
bottom of the earlier released guidance range of 80 cents to
$1.25 per share. Agrium's shares are down roughly 1.4% since the
The guidance excludes a number of one-time adjustments
including a purchase gain of about $250 million related to the
acquisition of the Viterra's Agri-business on Oct 1, 2013. The
company will also receive an insurance recovery of $70 million
for a long-standing litigation case on soybean shipments related
to the AWB Ltd./Landmark acquisition. Agrium will also incur a
goodwill impairment of roughly $220 million in Landmark due to
lower-than-expected business performance and delays in synergy
Agrium revised its guidance primarily due to lower-than-expected
selling prices across all wholesale nutrients in the fourth
quarter and lower-than-expected urea ammonium nitrate and
domestic potash sales volumes, partly due to problems related to
Agrium expects its retail operations to achieve record results
for the fourth quarter and full-year 2013.
Agrium has completed a strategic review of its Agrium Advanced
Technologies (AAT) business unit and is reviewing options,
including divesture of the turf and ornamental and direct
solutions businesses. AAT is not expected to contribute to
earnings before interest and tax (EBIT) in the fourth quarter of
2013 primarily due to delayed sales of ESN.
Agrium currently carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the fertilizer industry
Intrepid Potash Inc.
CF Industries Holdings, Inc.
). While China Bluechip holds a Zacks Rank #1 (Strong Buy), CF
Industries and Intrepid Potash retain a Zacks Rank #2 (Buy).
AGRIUM INC (AGU): Free Stock Analysis Report
CHINA BLUECHEM (CBLUY): Get Free Report
CF INDUS HLDGS (CF): Free Stock Analysis
INTREPID POTASH (IPI): Free Stock Analysis
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