April 02, 2014 - 5:23 AM
CALGARY - Agrium Inc. (TSX:AGU) says it expects only a slim profit in the first quarter, just above the break-even point.
Analysts have been expecting Agrium's profit for the first quarter of 2014 to well above break-even, although down from a year ago.
The Calgary-based fertilizer producer and farm-products retailer says several factors have worked against it, including a slow start to the spring planting season.
It also says the quarter will be affected by a usual lag in wholesale prices for crop nutrients and reduced rail availability.
Agrium also says a March 22 boiler failure at one of its plants will require an unexpected shutdown for repairs, to be complete by the second half of May.
The Carseland plant shutdown will reduce Agrium's production of urea and ammonia in the current quarter.
Analyst estimates indicate they have been expecting Agrium to report 56 cents US per share of earnings in the first quarter.
In the first quarter of 2013, Agrium had 94 cents US per share of net income under standard accounting and $1.03 per share of adjusted earnings.
Agrium shares closed Tuesday at $107.54, near the high end of their 52-week price range on the Toronto Stock Exchange.
News from © The Canadian Press, 2014