Agrium says it expects 95% drop in Q3 profit

Agrium Inc. announced that it expects third quarter 2009 earnings to be 90 to 95 percent below last years third quarter results, in line with results previously reported from industry peers for the third quarter.

The reduction is due to significantly lower prices and margins for all three crop nutrients, and particularly for phosphate and potash. Retail results have been negatively impacted by a slower than expected recovery in Retail crop nutrient margins in the third quarter and approximately a 40 percent decline in fungicide sales and applications this summer. These factors will result in a significant reduction in the previously forecasted Retail EBITDA.(1)

Despite these short-term challenges, Agrium believes the fundamentals for our businesses are excellent and we are well positioned for the anticipated strong recovery in crop input demand in 2010. Our U.S. grower customers have indicated their intention to return to normal crop nutrient application this fertilizer year, particularly now that corn prices have increased again to well above historic levels. If the wet weather in the US continues and shortens the fall application season it is expected to push fall nutrient demand into the spring of 2010.

We will provide more information in our third-quarter press release and conference call scheduled for Nov. 4, 2009.

Agrium Inc. is a major retail supplier of agricultural products and services in both North and South America and a leading global producer and marketer of agricultural nutrients and industrial products. Agrium produces and markets three primary groups of nutrients: nitrogen, phosphate and potash as well as controlled release fertilizers and micronutrients. Agriums strategy is to grow through incremental expansion of its existing operations and acquisitions as well as the development, commercialization and marketing of new products and international opportunities.