AGRIUM LIFTS OUTLOOK DESPITE U.S. RAINS
Congratulations to Agrium (AGU) for scaling the heights to the century mark. The crop-nutrients maker has climbed to a record price over $100 a share in pre-market trading, thanks to a 10% bulge in its stock price. The move came after the company said that, despite some challenging conditions in North America, demand for its products has remained robust.
The U.S. planting season has been disrupted by unusually wet and cold weather this spring. Industry reports have said that as many as 4 million of the 86 million acres of farmland expected to have been sown with corn seed haven’t been planted. Farmers faced a choice of leaving the acres fallow, or resorting to other crops with later-season planting cycles. Nevertheless, Agrium said that rising prices for agricultural products have increased demand for its fertilizers.
It forecast that second-quarter profits will come in ahead of its - and analysts’ - estimates: the company projected earnings of $2.80 to $3 a share, as much as 50% ahead of its earlier forecasts. Analysts had been looking for earnings of $2.50 a share.
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