Agrium says Q4 profit plunges, potash market improving

Agrium Inc., Canada’s second-biggest potash company, said the outlook for the fertilizer market is picking up after reporting a 75% drop in fourth-quarter earnings.

The company had net income of $30 million in the fourth quarter, compared with earnings of $124 million in the same period a year ago. The results included one-time losses of $35 million related to hedge positions and a $34 million expense linked to stock-based compensation.


"The fourth quarter of 2009 saw the initial stages of recovery in the crop input sector," said Mike Wilson, Agrium president and chief executive.
"Agrium is looking forward to a significant recovery in the crop input markets in 2010."



Agrium’s comments reflect those of other potash producers, such as Potash Corp. of Saskatchewan, which also noted demand was improving for the crop nutrient, with farmers unable to hold off much longer on replenishing the soil.