Agrium reports huge drop in third-quarter earnings

CALGARY, Alberta – Agrium Inc. (NYSE: AGU) reported net earnings of $26 million for the third quarter of 2009, down dramatically from the $367 million collected in the same quarter of 2008.

“The third quarter of 2009 held a number of challenges for the entire agriculture and fertilizer sector,´ said Mike Wilson, Agrium president and CEO. “Corn prices were depressed through much of the summer period, due partly to excellent growing conditions across North America, which contributed to lower sales and application of crop protection products at the retail level.

“As of mid-October, harvest progress for corn and soybeans was 50 percent behind normal, one of the slowest harvests on record, which could significantly limit the crop nutrient application window,” Wilson added.

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Despite a gloomy third quarter, Wilson predicted better earnings ahead for the company.

“Despite these short-term challenges, Agrium sees a significant recovery in demand across virtually all crop inputs starting in early 2010, particularly for the retail and potash businesses,” Wilson said.

Agrium purchased United Agri-Products, formerly based in Greeley, in 2008. Two divisions of the company — Crop Production Services and Agrium Advanced Technologies — are in the process of moving from Greeley to the Centerra development in Loveland.