Agruim Admits Record Earnings
CHEMMONITOR.COM – Agrium reported record high incomes during the second quarter of 2012. The company once again demonstrated its solid position in the industry, delivering its highest sales volumes and EBITDA. Company’s performance was mainly supported by increasing crop input demand in the US market. Severe draughts in North America caused rain and oilseed prices increase and 2012 is expected to show high demand for nutrients due to tight grain inventories.
Agrium revenue for the Q2 2012 comprised USD 6.8 B which is 10.3% up from the corresponding period of 2011, gross profit equaled USD 1.9 B (11.6% up), EBIT amounted to USD 1.2 B (16.8% up), net income recorded value of USD 860 M (19.8% up).
Retail segment contributed USD 5.2 B to the total revenue amount, Wholesale segment recorded USD 1.7 B sales during the quarter. The former was driven by strong June crop nutrient sales, the latter benefited from lower costs and higher sales prices. Advanced Technologies segment was flat during Q2, affected by good sales in Direct Solutions and low sales in Environmentally Smart Nitrogen.
The outlook stipulates very high demand for crop inputs in 2012 as current yields are far below required levels (thus, corn yields are 25% lower than expected). Agrium has all the chances to deliver robust second half of 2012, establishing record incomes during usually slow periods.
Founded in 1931 and headquartered in Calgary, Alberta (Canada), Agrium engages in supply of agricultural products and services in Americas, being also one of the world largest agricultural nutrients and industrial products manufacturers. The company operates in three segments: Wholesale (responsible for production and marketing activities), Retail (engaged in direct-to-grower distribution) and Advanced Technologies (develops controlled-release fertilizer technologies). Agrium trades on Toronto Stock Exchange under the ticker AGU.