Agrium Inc. announced August 5 its second highest quarterly net earnings at $370-million ($2.35 diluted earnings per share) for the second quarter of 2009.
“Solid results from retail, advanced technologies and our wholesale nitrogen businesses resulted in Agrium achieving our second strongest quarterly net earnings in our history, said Mike Wilson, Agrium president and CEO in a release. “We were able to do this despite the challenge of a short-term reduction in potash and phosphate application rates and retail crop nutrient margins.
Wilson said retail crop protection and seed businesses in particular delivered excellent results the company ended the season with normal crop nutrient inventories its retail business.
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With respect to Agrium’s proposal to acquire CF Industries Holdings, Inc. (“CF”), Wilson stated the company remains “fully committed to acquiring CF. “We will continue to press CF to execute a mutually beneficial merger agreement despite the fact that CF has so far ignored a clear mandate from their stockholders’ to conclude a transaction with us,” he said.
The 2009 second quarter results included gains of $15-million ($0.07 diluted earnings per share) on derivative financial instruments and a $4-million expense in stock-based compensation for the quarter. It also included an inventory write-down of $32-million (a $0.15 decrease in diluted earnings per share) primarily associated with its wholesale purchase for resale business.
