Agrium Q2 2010 profits jump 37%

Agrium Inc. delivered its second-highest quarterly earnings to date in the second quarter despite less-than-ideal crop-growing conditions.

The Calgary-based agriculture giant said it earned US$506-million in Q2, or US$3.20 a share. That’s a 37% increase over last year’s same-quarter earnings of US$370-million, or US$2.35 a share.

Revenue rose 7% to US$4.37-billion. Potash sales volumes soared to 529,000 tonnes, from 61,000 tonnes last year.
Analysts on average had expected earnings of US$2.77 a share, on revenue of US$4.17 billion, according to Thomson Reuters I/B/E/S.

Mike Wilson, Agriums chief executive, said the results were "particularly impressive" given extremely wet conditions in Western Canada and the U.S. corn belt in May and June, which impeded crop production. However, April was a very strong month.

"Agriums significant breadth and depth in our geographic and product offerings allowed us to offset these challenges and provide excellent returns," Mr. Wilson said in a statement.

The company also offered a healthy outlook for the future, noting improvements in fertilizer markets and rising grain prices, which are up on concerns about drought conditions in Europe and Russia.

"Agrium will continue to position itself strategically to capture these robust fundamentals by growing all business units along the agricultural value chain,” Mr. Wilson said.