Agrium Inc. (TSX and NYSE: AGU) announced today that it expects to earn between $2.80 to $3.00 diluted earnings per share in the second quarter of 2008, or $4.03 to $4.23 for the first half of 2008. The significant increase from the previous guidance of $1.92 to $2.22 diluted earnings per share for the second quarter is due to very strong results from both our Retail and Wholesale operations, with Retail expected to account for half of the increase. This guidance excludes any additional impact from stock-based compensation expense or mark to market gains from our natural gas and currency hedging positions.
The guidance also excludes any contribution from our recent UAP retail acquisition. The contribution from UAP’s business is expected to be significant this quarter. For example, UAP’s EBIT for May and June of 2007 was $138-million. Given the strong results demonstrated by our base retail operations, UAP’s earnings could also be higher in 2008 pending the finalizing of purchase accounting and any other potential adjustments.
“Our excellent results are due to strong performance from both our Retail and Wholesale operations, which is particularly impressive given that the North American spring application season has been hampered by excessively cold and wet weather this year. Continued strong global crop prices have created unprecedented demand for crop inputs and we foresee an extended demand-driven cycle.” said Mike Wilson, Agrium President and CEO.
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