Agrium Sees Profit Plummeting In 3rd Quarter

NEW YORK (AP) — Fertilizer maker Agrium Inc. on Friday warned investors that its third-quarter earnings will plummet, as sluggish sales and a slow industry recovery significantly drove down prices and margins.

Still, looking ahead to 2010, the Canadian company said it remains upbeat and expects a recovery.

Agrium said it expects earnings will plunge 90 percent to 95 percent below 2008 third-quarter results, of $367 million, or $2.31 per share. This news comes a day after potash rival Potash Corporation of Saskatchewan Inc. reported a 79 percent drop in its third-quarter earnings results, driven by dramatic volume and price declines.

Agrium said that all three crop nutrients — nitrogen, phosphate and potash — saw price deterioration, especially phosphate and potash.

In the most recent quarter, retail results have been hurt by a slow recovery in retail crop nutrient margins, along with a 40 percent decline in fungicide sales and applications this summer.

Despite near-term challenges, Agrium said it believes it is well-positioned for the expected strong recovery in crop input demand in 2010.