Nutrien optimistic on earnings despite US$1M loss in Q1
The world’s largest potash mining company lost US$1 million in its first quarter of operations, but the company signalled optimism by raising its full-year earnings estimates.
Nutrien Ltd., which was formed Jan 1. in the merger between Potash Corp. of Saskatchewan Inc. and Agrium Inc., reported its loss on sales totalling US$3.7 billion. By comparison, PotashCorp and Agrium earned a combined total of $97 million on US$3.7 billion in revenues while operating separately in the first quarter of last year.
“Nutrien’s first quarter was affected by a late start to the spring season across North America and west coast rail performance issues,” Nutrien president and CEO Chuck Magro said in a prepared statement.
“However, we expect a strong second quarter with improved grower margins and strong demand and firm prices for most crop inputs.”
The Saskatoon-based company last month blamed poor service from the railways for its decision to temporarily lay off 610 workers from two potash mines near Saskatoon.
Canadian National Railway Co. said in a statement that its deliveries for the company are current, and that it’s offering extra shipping capacity for both North American and international potash orders.
In a news release issued Monday, Nutrien said it expects potash markets to remain “robust” due to “high underlying consumption and relatively low inventory levels in most major markets.”
The company said the merger has resulted in cost savings of US$150 million as of March 31.
Nutrien has previously forecast annual savings of US$500 million.