) second-quarter 2013 earnings (excluding one-time items other
than stock-based compensation expenses) of $5.09 per share beat
the Zacks Consensus Estimate of $4.95. After including one-time
items, the company reported earnings of $5.02 per share compared
with $5.44 in the year-ago quarter. Profit fell 13.1% year over
year to $747 million as cold weather in North America caused
farmers to make fewer applications in the quarter.
Revenues increased roughly 3.6% year over year to $7,016
million in the reported quarter and exceeded the Zacks Consensus
Estimate of $7,000 million. Increased Retail and Advanced
Technologies sales led to the higher revenues in the quarter.
Revenues from the Retail segment rose 7% year over year to
$5.6 billion in the reported quarter due to a more regular
seasonal crop input demand for the first half of 2013 in North
America and the a very early planting season in 2012. Gross
profit remained flat at $1.1 billion and earnings before
interest, taxes, depreciation and amortization (EBITDA) was $619
million, up 2.3% year over year.
The Wholesale segment's sales fell 9% to $1.5 billion. The
segment's EBITDA of $517 million represented a decline of $160
million from the year-ago quarter. Results of the segment were
affected by lower realized sales prices for urea, potash and
phosphate as a result of global market pressures accompanied by
an unplanned outage at the company's Redwater nitrogen
Revenues from the Advanced Technologies segment rose 16% to
$207 million and EBITDA from the division shot up 20% year over
year to $24 million due to strong Environmentally Smart Nitrogen
(ESN) volumes as a result of gains in market acceptance in North
America for the product and higher production at its New Madrid
Agrium's cash and cash equivalents were $494 million as of Jun
30, 2013, compared with $1,946 million as of Jun 30, 2012. Cash
provided by operating activities was $298 million as of Jun 30,
2013, compared with $1,120 million as of Jun 30, 2012.
Agrium entered into an agreement to acquire certain
agri-product assets of Viterra from Glencore (Glencore acquired
Viterra in Dec 2012) including Viterra's 34% interest in a
nitrogen facility located in the city of Medicine Hat. During the
CF Industries Holdings Inc.
) acquired Viterra's 34% interest from Glencore, and Agrium thus
received $932 million which is subject to adjustment according to
Agrium's agreement with Glencore.
Looking ahead, Agrium expects strong demand for crop inputs in
the second half of 2013 as farmers seek to increase crop yields.
The optimism is also based on strong nutrient removal in 2013 and
the affordability of crop nutrients.
Agrium is one of the prominent Canadian fertilizer companies
and currently carries a Zacks Rank #5 (Strong Sell). Notably, its
Potash Corp. of Saskatchewan Inc.
AGRIUM INC (AGU): Free Stock Analysis Report
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